Epic Real Estate Investing - How to Become a Millionaire Through Real Estate Investing in 12 Months | Newbies! | 1204

Episode Date: May 19, 2022

Many people have become millionaires through real estate investing. Do you want to know how they did it? By the end of this episode, you will have 9 steps on how to become a millionaire through real estate investing in 12 months. Stay tuned and reveal these life-changing secrets!   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 through real estate investing in 12 months. Sounds great, right? So many others have done it. Why not you? Well, I like where your head's at. You ready to learn how? More importantly, learn how you can pull it off for yourself?

Me too. 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-EI.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 righty, by the time we're done here, you're going to have nine actionable steps to take to becoming a millionaire through real estate investing in the next 12 months even. And then I'll give you a few secret tips to help you maybe even go faster. Oh, and by the way, if you want to just skip all of this explanation and just get to work on taking down your first deal, I put together a free training just for you to help you get that first one done.

And then how to earn $5,000 a month flipping contracts and properties working at as little as one hour a day. And you can access it at mats free training.com. All righty, so a millionaire in 12 months or less by investing in real estate. Yeah, I said it. What you can conceive and believe and follow it up with a proven plan and tenacious action you can achieve. So before we get to the tips for millennials and how to get started with just $10,000, let's run through nine actionable steps for you to pull it off. Step one, define.

You know, millionaire status can be defined in different ways. Maybe you want to own a million dollars worth of assets or you want a million dollars of equity. or you want the passive income a million dollars would produce. So first, define what that is for you. For me, I like the passive income that a million dollars produces, as this represents true financial freedom, you know, doing what I want to do, when I want to do it, but even more so, being able to avoid all the stuff that I don't want to do.

Step two, research, because there's a million ways to make a million bucks in real estate. But you need to only choose one. Will it be through flipping single-family homes or rehabbing and leasing foreplexes or maybe through commercial apartment buildings and forcing appreciation. It will pay massive dividends to explore the many options. But for our purposes today, I'm going to use landlording, single-family homes, since that's how I personally pulled it off, and it's how most of my students pull it off too. Step three, plan. And it's as simple as this.

If you got $1 million sitting in a very conservative investment producing a 5% annual return, that would produce $4,166 per month. So my minimum of cash flow per property is $300 per month. So my worst case scenario would be to buy 14 properties. Now, I know I'm going to have a couple winners in there. So let's say we need 12 income properties in the next 12 months. So that's my simple plan to acquire one income property per month over the next 12 months. Step four, focus.

You know, dispersed energy is weak. It's like letting the sunlight kind of hit your face. You feel the warmth, but you'd have to stand still for a while before any sort of, say, sunburn would take effect. Now, focused energy, that's strong, like a laser. And you aim that laser at a plate of steel, it would cut through instantly. So in both scenarios, we're just talking about light. One is dispersed and one is focused. And they produce an entirely different result.

Your attention, it works in very much the same manner. At this point, you know what you want. The asset class that you're going to use to get it and the plan around how to pull it off. So focus on that. Step 5. Market directly to motivated sellers. Your progress to a million dollars of equity and the passive income a million dollars of real estate would produce can be significantly accelerated by negotiating a combination of price and terms directly with sellers who need to sell fast. Leave the real estate agents out of your deals for the time being.

Because life situations that may cause a seller to sell fast and at a discount include, but aren't limited to, divorce, death, disease, delinquency, drugs, job loss, bankruptcy, a bad tenant, contractors are bad or a bad property manager experience. I mean, face it, life comes along and it happens to everyone. It kicks everybody in the butt every now and then, even property owners. These life situations can create problems for owners that only money can fix, and many will turn to selling their properties fast and at a discount to get that financial relief. And in these types of situations, a real estate agent simply doesn't have to,

the solution that they need at this time in their life. So they call us instead, real estate investors. And there are countless ways of finding motivated sellers, like online ads with Google or Facebook or direct mail or door knocking or bandit signs, cold calling, flyers, referrals, networking. The list is really endless. And these unfortunate circumstances happen to people every day. There's never a shortage of motivated sellers in the market, regardless of the neighborhood or the demographics.

Step six, make offers. You know, the number of deals that you do will be a direct proportion to the number of written offers that you present to sellers. So if you want to do a lot of deals, simple, write a lot of offers. You know, a good practice to becoming a millionaire through real estate investing in the next 12 months is to commit to writing one offer per day. That would be 365 offers per year. Do that and getting those 12 deals done, it's a no-brainer.

Step 7. Make your first investment. You know, your first investment acquisition will typically, typically be the most difficult, but once you're on the property ladder, subsequent investments will become easier, and it can all really start to snowball fast after that. Step 8, make it perform. Acquiring the property is only half the equation. Now you need to make it cash flow, and that happens through sound property management. That's whether you do it yourself or you hire it out.

The key to performance is to make sure your property is safe, clean, up to code, and that everything works. You don't need to do much more than that to find a quality tenant. And one of the things that Mercedes and I will do when we enter into a new market is we tour other landlords rentals. We want to scope out the competition in order to get the top market rent for our properties. You know, we're keeping an eye out for the type of condition and upgrades the market is used to. And then we make sure that our properties are just a little bit nicer because you don't have to fix your property up to get it ready for architectural digest. you just need to be better than the other properties your prospective tenants will be seeing.

Step 9. Reinvest your profits. Rather than spending any investment profits, reinvest them to grow your real estate portfolio faster. This is really kind of the secret to becoming a millionaire through real estate investing and being able to do it in 12 months. You know, while financial planners promote compound interest as the big wealth creator, and it very well may be if you have enough time to let it do its magic, but it'll never grow bigger or faster than if you're compounding income-producing assets, rental properties. And that's how you do it by taking the cash flow and refinancing of equity to buy more income properties. It will not only contribute to you becoming a millionaire in 12 months,

it'll create generational wealth for you to pass on. Now, aside from investing in real estate, I teach people how to do it too. And I've noticed some commonalities among my millennial students that are holding them back or are not allowing them to move forward as fast as they could. So I've got four quick tips of the millennials that I've worked with. They all say that they would like to buy a home someday. I find it rather amusing when I hear this because many of them earn much more money than I did at their age and older. But I find that most of them have essentially no real money saved. They're carrying a lot of consumer debt and they can't seem to make ends meet, even those that are living with their parents or roommates. All in all, it took me about 41 years to

become a real estate millionaire. But it took me just under four years from the day that I bought my first property. You know, if someone had taken me under their wing when I was 25 or so, who knows how much faster I could have made it happen. Anyway, the four places that I check right away with my younger clients in the interest of helping them progress faster are, one, eliminating consumer debt. You know, nothing can stifle your financial productivity like using debt to buy depreciating assets like, you know, fancy cars and cell phones, electronics, jewelry, stuff like that. And it's not just the monthly payments these debts will create, but the more you carry,

the lower your credit score. because a good credit score can be an invaluable tool investing in real estate. The lower your credit score, the less money that will be available to you, and the more you're going to have to pay for what is available. Make your million first, and then the toys will be so much easier to afford, manage, and enjoy it. Number two, automate your savings. Save 15 to 20% of every paycheck and pay yourself first. You know, I didn't learn this actually until just about five years ago.

And it has been an absolute game changer. depending on how often you get paid from your job or your business, automate a portion of that to go into a separate account and shoot for 15 to 20%. You might have to start smaller, but you can work your way up. It's going to be tough the first time or two this is taken out of your account, but soon you'll become accustomed to it and you won't even notice it's gone. And when you do this, you're going to be blown away on how quickly it accumulates

and then by the flexibility that it's going to give you in your real estate investing, whether it's for a down payment, whether it's for a rehab, or whether it's for your marketing expenses. And the key part of this automation, what really creates the magic, is making sure that it happens first, that you're paying yourself first, pay your bills second,

and then what's left over, that's up for your discretional spending. Now, I'm not mad at my financial situation right now, but I can only imagine where I'd be had I adopted this practice even just five years earlier than I did. Now, number three, save your first $10,000, stop renting, and buy your first house.

So, if you've been in the middle, military, use your VA loan. It's a 0% down loan. If not, you can use your FHA loan. You'll need only 3, 3.5% down, and the credit qualification is much easier than a conventional loan. And look for something distressed or find a motivated seller where you can purchase the property below market value with equity already in place the day that you take ownership. Then fix it up the best you can, live in it for a while, tap into your equity via refinance, move out, turn it into a rental, and buy another distressed property with equity in place. And that brings us the tip number four. Repeat step three. Repeat the process several times over the next decade,

and you'll find yourself financially independent. Continue the process for another 10 years or so, and you'll never have to work or worry about money again. And if you wanted to go even faster, you most certainly could. And if you'd like some help with that, go to r-e-i-a-a-acet-com, answer a few questions, and then pick a time for us to hop on the phone to brainstorm some ideas about what that might look like for you. R-E-I-Aase.com. 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. I'm Matt Terrio. Living the dream. Yeah, yeah, we got the cash flow. You didn't know home world, we got cash low.

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