Epic Real Estate Investing - How to Become a Millionaire In Real Estate | 1217

Episode Date: July 12, 2022

Have you been hearing stories of realtors becoming millionaires? Well, it’s true! And you know you want it, too! Therefore, listen to this episode and learn the 8 steps to get started reaching your millionaire status.  Are you ready?  Let’s go! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. How to become a millionaire in real estate. It's a question most aspiring entrepreneurs and investors are searching for, and I've found it. You ready? Let's go. Welcome to the all-new, epic real estate investing show. The longest running real estate investing podcast on the interwebs. Your source for housing market updates, creative investing strategies, and everything else you need to retire early.

Some audio may be pulled from our weekly videos and may require visual support. To get the full premium experience, check out Epic Real Estate's YouTube channel, EpicR-E-I.TV. If you want to make money in real estate, sit tight and stay tuned. If you want to go far, share this with a friend. If you want to go fast, go to rei-Ase.com. Here's Matt. All right, so by the time we're done here, you'll know why real estate has produced so many millionaires, and then I'm going to give you eight steps for how you can become one of them.

And if you'd like to dive in and take some real action right away and flip a house in just one day using my funds to do it even, I'll show you how you can pull this off in your market right now at matsfree training.com. Okay, so regarding becoming a millionaire in real estate, it was Andrew Carnegie, who led the expansion of the American steel industry and became one of the richest men in history. And he asserted that 90% of all millionaires became millionaires through real estate investing. Now, while the world has changed quite a bit since Carnegie's time, today's millionaires and billionaires still share his enthusiasm for real estate because that's where the money's at. No, between the passive income potential, the long-term appreciation,

the tax benefits, and the ability to leverage other people's money in a way that isn't available to the average person and any other investment, real estate continues to be the investment of choice for the wealthy. And for the not so wealthy, real estate really is the final frontier where the average person can become a millionaire. And it's not as difficult as most people think. And why is that? Well, it's because that there are four primary wealth generators working for you when you invest in real estate. And although it does somewhat depend on the strategy that you choose to pursue, most of these wealth generators work without you having to do anything. So the first wealth generator is appreciation. And this is the one most people are familiar with. When the value of a

property increases, we call this appreciation. While appreciation is not always guaranteed, real estate's value has averaged about 3% growth per year over the last 100 years. And that's the average. I mean, sometimes we see a crash, and then like recently, we see back-to-back years of double-digit growth. Now, the second wealth generator is cash flow. This is the extra income from your tenants that you're going to get to keep each month after you've paid all your property's expenses. So cash flow, this can be deceptive because it fluctuates when certain repairs are higher or lower in different months. So it's important to factor in non-monthly costs like vacancy, repairs, maintenance, taxes, insurance, and property management. Now, the third wealth

generator are the tax benefits. So the U.S. government likes real estate investors and uses the tax system to encourage them, to incentivize us, to purchase and lease properties. Mostly, so they don't have to do it. So depreciation is one of the tax benefits that the IRS gives us. And this is a deduction for the normal wear and tear on a property while you own it. And then there are many other tax write-offs that are general to business owners because, you know, when you own an investment property, the tax code sees you as a business owner. And the tax benefits in real estate, they're so good that the average person in America can virtually eliminate their tax liability by simply owning and managing just a few income properties. I mean, imagine, no more taxes.

Legally, honestly, ethically, morally. And even with Uncle Sam's blessing, consult your CPA, of course, as every case is unique, but there's more available here than most people realize. Now, the fourth wealth generator is amortization. And this is the paying down of your mortgage. See, every month that you make a payment, your loan balance, it decreases. But when it's an income property, it's not you that's paying this debt down. It's your tenant. You see, this is a payment. You see, this is a key element as to what makes an income property a far superior investment over your primary residence. And that actually brings me to a fifth wealth creator. And that's the ability to leverage

someone else's money to purchase your real estate investments. A leverage using OPM and other people's money. You see, the typical real estate loan is going to require a 20% down payment from you in which a bank would give you the balance of 80% to make the purchase. What happens here is this results in a 5x return on your investment. Your money in real estate, it grows five times faster than a would and an equal yielding stock, bond or mutual fund. I mean, you can become a millionaire pretty fast when your money is growing five times faster than it normally would. Isn't investing in real estate risky? That's what most people think. Well, sure, there's an amount of risk involved with any investment, but because real estate is a tangible asset that will always be needed by human beings,

it's never going to be worth zero. You can't say that for stocks, not even for Netflix, Apple or Amazon. Real estate provides a faster, more probable path for the average person to becoming a millionaire in proportion to the amount of risk that's present in any other investment opportunity

that's really available to the average person. So becoming a millionaire in real estate, it's not guaranteed, of course. I'm not saying that. It merely represents most people's best chance at becoming one. Where do you start? Well, I'm going to give you eight steps.

Number one, educate yourself. It's been said that there are no bad real estate investments, just uneducated investors. So before you start, I recommend that you attend a seminar or put your nose in a book or or watch some more videos and don't stop here either. I mean, there are a million ways to make your millions in real estate. You know, when it comes to your initial education and making money the fastest, I'd focus on these three areas of real estate investing. One, learn to find discounted off-market real estate. Two, learn to maximize the income your real estate produces, and three, learn to manage your real estate for the long term. Now, there's much more to learn, but if you get

those three right, it's pretty tough to mess up this millionaire plan. Now, number two, set clear goals and create a plan. Once you've explored the different strategies in real estate investing, you need to set your goals and come up with a plan, and you want to make sure you address, one, what is it that you want from real estate? Two, why do you want it? Three, the date you want it. And four, how you're going to do it. A shortcut for this is to look for someone who is doing what it is that you do want to do

and who has what you want to have. Become a person of value to them in exchange for guidance and wisdom. If you can't find one, hire one. Hire a coach if you must. Connecting with someone who's been down the road that you want to travel cannot be underestimated. Number three, stop waiting to get started. You know, most real estate investors, they fail before they get started because they never start. When I recognize with the people that I get to work with that they feel that they need to know everything before taking that first step.

This is the slowest way to go about it. The fastest way is to learn a little, do a little. Learn a little, do a little. Travel as far as you can see. And when you get there, you're going to see further. Number four, make offers. You know, the amount of deals that you do and the overall success you achieve, it's going to be in direct proportion to the number of written offers that you present. to sellers. You know, when it comes to real estate's value, it's all about location, location,

location. We've all heard that before. But when it comes to real estate investing, it's all about offers, offers, offers. Fewer people have heard that. Now, number five, invest for income. Those that don't know any better will invest for equity or appreciation only. And there's nothing entirely wrong with that, but you may have to wait for a while for your equity to grow. If you have the means to manage the property and service any debt on the property, hey, then that's fine, but most people don't. So, invest in properties that produce income to alleviate this pressure and put some money in your pocket while you wait. Now, number six, compound your assets. You know, if you want to become a millionaire from real estate investing,

you will likely need to buy multiple properties or multiple units. And as your properties appreciate whether naturally or by force, you'll want to leverage them to buy more. You know, Einstein said that compound interest is the eighth wonder of the world. I mean, I wonder if you ever did the math on compounding income producing real estate because it's better, it's faster. Compound your assets. Then number seven, keep growing. It gets easier as you grow.

And once you buy one property, the cash flow and equity that you're going to earn from it will make it easier to buy your second property. And that second one will make it easier to buy the third. And then the larger portfolio, the easier this gets, the more money you make and the less risk you're taking. Now, number eight, go deep before going wide. And what I mean by that is, when you find an investment strategy that works for you, be careful about going into different markets and trying different strategies and pursuing different

asset classes. You know, as entrepreneurs, it's natural to want to venture out into new and exciting opportunities. And of what you're currently doing is successful, it's really easy to lose focus because, you know, you feel smart. You feel competent and invincible. Ask me how I can know. I've found it to be far more profitable to dive deeper into what's, working and optimize it the very best that you can that it is to diversify too far out of your

core strategy. Those are my recommended eight steps to get started to reaching your millionaire status. And by the time you reach step eight, you will have probably already become a millionaire investing in real estate. So if you're focused and action oriented, it can happen pretty darn fast. And if you'd like some help and going even faster, meet me over at reiase.com, answer a few questions, and then just pick a time for us to hop on the phone to brainstorm some ideas and getting you to millionaire real estate investor status the fastest way possible. And that wraps up the epic show. If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would. And when their name comes to

mind, please share it with them and ask them to click the subscribe button when they get here and I'll take great care of them. God loves you and so do I. Health, peace, blessings and success to you. A Metterio. Living the dream. This podcast is a part of the C-suite radio network. For more top business podcasts, visit c-sweetradio.com.