Epic Real Estate Investing - How to Achieve Financial Freedom in Real Estate (FAST!) | 909

Episode Date: January 26, 2020

In today’s episode, Matt thoroughly explains how to quickly achieve financial freedom using real estate. Particularly, he reveals how to reach $5000 per month of passive income in less than 2 years that will set you free! Tune in and find out more! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terrio Media. Success in real estate has nothing to do with shiny objects. It has everything to do with mastering the basics. The three pillars of real estate investing. Attract, convert, exit. Matt Terrio has been helping real estate investors do just that for more than a decade now. If you want to make money in real estate, keep listening. If you want it faster, visit R-E-I-Aase.com.

Here's Matt. So through my podcast and through my YouTube channel, I get to interact with a wide variety of aspiring real estate investors. And they all really want the same thing. They want the financial freedom that real estate promises. And I've recognized the big difference between those that achieve it and those that don't. And it really comes down to where their focus is, where their strategy is, and the decisions that they make on a daily basis.

And when I'm talking about decisions, I'm specifically referring to when you go out there and you generate a lead and you go interact with a seller and you reach an agreement and you get that property under contract, it's that decision right then and there, what are you going to do with it? And I get it. I get it all the time because Mercedes and I, we have the same decision on a daily basis. We could either flip this property for $30,000 or we could hold onto this property and create $300 a month. And for most humans on the surface, that $30,000 seems like a fantastic payday because it's a good chunk of money. But if you're pursuing financial freedom, is it really? And here's what I mean.

We've got this same house. And we can flip this house for $30,000, a really, really good payday in our world. Or we could hold this house and create $300 a month. So if financial freedom is the goal, what is actually going to create the financial freedom? It's the recurring revenue that comes in on a monthly basis, like clockwork, with or without your participation to achieve it. So if that's the case, and our goal is, say, $5,000 a month is going to set us free. That's going to give us our financial freedom. That $5,000 coming in each and every month is going to pay our monthly expenses that's going to pay for our livelihood.

So now that we look at this, which is the best option? Still, most people think, 30K, that's going to get you covered. closer? Or is it? So where people mistake is they are thinking they are comparing apples to apples. But are they really? 30,000 dollars of cash is your apple. $300 a month is actually an orange. So if we want to compare the apples to the apples, then we have to look at how these really equate to each other. So what does it take in our today's environment to create $300 a month? Here, I'll pull it out of the, let me grab my calculator real quick. So $300 a month, we're going to multiply that by 12.

That gives us $3,600 a year. And say, I don't know, what's a fair interest rate? 4%, 5%, 6%, we'll choose the one right in the middle. Say 5%. We'll divide that by 5%. It's $72,000. So really, if you're going to compare apples to apples, you can't compare $30,000 to $300 a month.

You're comparing $30,000 to $70,000 to $70,000. the $2,000 that creates the $300 a month. So if you want to create that residual income, that $5,000 a month that's going to create your financial freedom, which one is going to get you there faster? Is it $30,000 or is it $72,000 per transaction? Starting to become a little bit more clear, right? Let's do the practical application.

How much money do we need in a bank account today at this 5% to create the $300 a month? Well, again, Let's take $5,000 times 12, divide it by 5%. What you're going to need is $1.2 million in an account somewhere. So if we're going to flip houses at $30,000 a pot, that's going to be 40 houses. But if we're going to hold the houses at $300 a month, it's $5,000 divided by $300. That's 17 houses.

So if we were to just do one of these deals per month, over here, we're done in what's that? About a year and a half, basically, one and a half years. If we're going to do one a month of the flips, when are we done? Let's say six and a half years, maybe seven years. I'll say six years. Say one month you did two of them, right? So if you want to create your financial freedom the fast way,

are you going to do it faster by flipping house? or by holding houses. And the huge tragedy is out there, gurus are getting paid, making millions, promising you financial freedom by flipping houses. Now don't get me wrong, both ways, hard work. The big question is, though, how long do you want to work hard?

One and a half years or six years? Oh, by the way, this $30,000, you can't spend any of it, right? Because you've got to save this $1.2 million. this $1.2 million, you need something to live on. So let's say you're going to live on 15,000, half of it, and then you're going to save 15,000. It's not really six years anymore, is it? No, that doubles. Now you're talking 12 years. So what do you want? Do you want the fast way to financial freedom? Or do you want the slow way? I think it goes unsaid. You want the fast way.

The fastest way to financial freedom is by holding houses, not flipping them. All righty? I'll see you next time. This podcast is a part of the C-suite radio network. For more top business podcasts, visit c-sweetradio.com.