Epic Real Estate Investing - How to Create Cash and Cash Flow Quickly | Episode 228

Episode Date: October 31, 2016

Want to learn how to create cash and cash flow quickly? Join Matt Theriault on the Epic Real Estate Investing podcast as he gives listeners another Epic lesson in building passive income.  Discover in-depth strategies for finding deals and creating cash flow through seller financing. Learn ways to leverage other people’s money for your benefit and find out how you can build or rebuild your real estate business for a more profitable year in 2017.   ______   The free course is new and improved!  To access to the two fastest and easiest strategies to a paycheck in real estate, go to FreeRealEstateInvestingCourse.com or text “FreeCourse” to 55678. What interests you most? E.ducation P.roperties I.ncome C.oaching Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terrio Media. Broadcasting from Terrio Studios in Glendale, California, it's time for Epic Real Estate Investing with Matt Terrio. Hello, and welcome to Epic Real Estate Investing, the place where I show people how to escape the rat race using real estate. Now, if you're just getting started and or you're looking for new and creative ways of making money in real estate, I've put together a free course just for you, including a checklist on how to find motivated sellers that would be property owners that are willing and able to sell you their property at a discount because that's what we do it as real estate investors, right? We buy low, we sell high, we got to buy to discount. This course shows you exactly how to do that and to access that free course. Go to free real estate investing course.com.

Free real estate investing course.com. All righty. Got a great show for you today. last week inside the academy members area, the private Facebook group for the Epic Pro Academy members, Epic Pro Academy member Stephanie Wyatt, she asked a question for what's up Wednesday. Every Wednesday I post a little post there, then ask how I can help people. They just start writing in what they need help with, and I answer right there. But she had a really good one, and I thought it would be great to share here. It was definitely a little bit too much for me to type in that format, or, that platform. So I thought I'd do it here. So I don't have to type it. I can just speak it.

And what Stephanie asked was, she said, I am trying to increase my monthly cash flow quickly. What's the best way to get started? Is looking for properties with seller financing the best option? Or are there more ways I should be looking into? So before we resume with our start your year early subject and all of the advantages that accompanying starting your year early. I thought I'd go ahead and I just answer Stephanie's question right here today. And then after that, we'll go ahead and we'll pick up where we left off last week. All right. So I gave her a basic explanation on the post.

Two things. One, make sure every lead you speak to receives a three option letter of intent at least. Okay? So we start with the purchase agreement. And if that doesn't work, then we go to the three option letter of intent. Make sure every single lead at least gets that. step two or number two start laying the groundwork with your network for the use of private funds and then I just copy and pasted the link there to three steps to raising private money that lesson that's

inside the academy but so that was the short of it make sure at least every lead you speak to receives a three optional letter of intent and start laying the groundwork within your network for the use of private funds you see by combining these two you can virtually turn every deal you come across into passive income into that monthly cash flow whether seller financing is an option or not. So I'm going to go ahead and elaborate on that. That was the extent of what my response was. And I said, hey, tune in on Monday.

And I'll go ahead and I'll go into detail for you. So I'm going to go into detail for Stephanie. And you guys can just listen in. Sound good? All right. So I'm going to elaborate on those two points. Stephanie asked, what's the best way to get started? That was the first part of her question.

So my answer to that, and the answer would be the same for anyone regarding any strategy. and that is to start by one generating leads, two, contacting and following up with those leads, and three, make sure every lead you receive or you encounter, make sure that they receive an offer, and at the very least, a three-option letter of intent. Overall, what it really means is just start. The best way to get started is to focus on finding deals because until you've got a deal, you've got nothing. You have nothing until you've got a deal.

All right? So that's the overall answer. What I meant by that is start just writing offers. Start finding deals. Start getting these deals under contract. See, once you start securing these deals, getting control of them via a signed contract, now you can decide what you want to do with it. Now, I mean, I don't even want you to think about what you're going to do with that deal

until you actually get it signed. Get the thing, get control of it. And I like this approach, figuring out what you're going to do with the deal after you have it under contract rather than before, like so many other gurus will teach. Like someone goes out there going to teach you how to do subject twos. They teach you out of just go find subject twos. And I think that's the wrong way to go about it because, you know, when you're generating leads, you never know what you're going to get.

You never know what type of seller you'll encounter. You can be intentional on finding that subject two seller, but you're going to get all kinds of stuff. And you never know what you're going to encounter. You're never going to know what type of property that they're actually owned that they want to sell or that they need to sell, a lot of times it's not the property that you were originally targeting. They got something else for sale. Or you're never going to know exactly what their specific situation or what their motivation is. And if you're looking only for, say, seller finance

deals, you're going to encounter a ton of opportunity that you're going to, you won't recognize it. And you're going to end up throwing it away. And that's such a huge waste of your marketing dollars and your effort. So find deals. Secure them. and then figure out what you're going to do with them. That's how you get started, all right? So Stephanie's next question was, is looking for properties with seller financing the best option, or are there more ways I should be looking into it?

So my answer to your question would be yes, and yes, I do like seller finance deals the best for when it comes to, if you want to create cash flow and you want to do it easily, you want to do it quickly, look for those seller finance deals. Those are the best deals. I love those deals. As, you know, it's typically, it is typically the easiest, and least expensive way to create cash flow for yourself.

But it's not the only way, not by any means. So let's go over a few scenarios in creating cash flow. So scenario number one is you got a seller to provide seller financing. So you buy the property with the seller's financing and you hold the property for cash flow. You become the landlord. You have a tenant in place. The tenant pays you rent every month. That's scenario number one, very basic.

You get seller financing and you hold on to the property. Scenario number two, you get a seller to provide seller financing. So you buy the property with the seller's financing, and then you resell with your own seller financing, creating an arbitrage between the two, the two seller finance terms. That's a second way that you can create your cash flow. So in scenario one, you are the landlord, you own the property, you manage the tenant, you collect the money from the tenant. In scenario number two, you are the note holder on the property. So you have somebody else as the owner, they manage the property, and they pay you on that seller finance note. okay, the note or the financing that you provided for them.

So one, you're the property owner, the other one, you're the note holder. So those are your seller financed options. But what if the seller isn't providing financing? And they want cash. How do you create cash flow out of that? So scenario number three is you use other people's money to buy the property and you hold the property for cash flow, right? Pretty basic.

Scenario number four, you use other people's money to buy the property and resell with seller financing, creating your cash flow that way. So very much the same way as those first two scenarios is one was the seller's money and the other two options were somebody else's money, just not your money. Got it? Now, scenario number five, you get a property under contract that you don't want to hold and for one reason or another, no one else is going to want to hold it either. So then you just wholesale it quickly, put the cash in your pocket and move on to the next deal.

All right, so those are your basic scenarios. There's probably, there's others certainly to discuss, but these are the basic ones when it comes to creating cash flow. These are the decisions you're going to have, you're going to be faced with if your focus is solely on creating cash flow. Now, I'll get a little bit more detail. Let's go deeper. And I've covered recently a few times creating cash and cash flow for yourself

by wrapping a seller finance deal. I think one of those episodes was how to have your cash and cash flow and eat it to or something like that. I think I got cute with the title there. But how to have your cash and cash flow too? It was a couple months ago. So it was basically getting a property with seller financing on it and then reselling it with wrapping a new loan around that,

selling it to somebody else with seller financing. So that was, we've covered that a lot. Probably three or four times we went way deep into that on the epic intensive. So the point being, it's not complicated when the seller gives you seller financing. And that's probably why those are my favorite because it's easy. and it's not complicated. It's very simple.

It's quick. But when Stephanie asks, are there more ways I should be looking into it? Well, yes. So let me show you a very simple way of doing this, even when the seller doesn't offer financing, when they just want cash, right? So now when doing this,

you've got to operate from this mindset, from this perspective or this belief, the mindset that a tenant, that won a tenant, if given the chance, would rather own than rent. That's got to be your mindset. And two, there are an abundance of tenants in the marketplace that could not and would not qualify for a traditional conventional bank loan and or simply don't want to jump through all the hoops

of the bank that the bank makes you do. Okay, so that's, one, is you've got to have the belief that tenants would rather own than rent if it were the same price. Two, that there's an abundance of people out there that just have bad credit and they don't, they can't deal with the bank or they don't want to deal with the bank. So if you can adopt those two things and embrace those things, this is going to be really easy for you. So here's what I mean. Let's say let's go run through a, I guess an example.

Let's say you get a phone call from a motivated seller. And they'd like to meet with you to discuss selling their house. So if your goal is to create monthly cash flow quickly, like Stephanie's goal, one number you're going to need to know before you take that meeting is what will the property rent for? Okay, you got to, that's our starting point. You got to know what the property is going to rent for. And you can find that estimate on Zillow or Rentimeter or the good old fashion way, pick up the phone and call a property manager and ask them. And let's say that number for this particular property is $1,000.

I'll just use $1,000 to keep the math nice and simple. So if the rent is $1,000, it would be fairly easy to find someone that would want to own the property for $1,000 as well, right? Because that's your belief. if you can find someone to rent it for $1,000, should be no problem at all to find someone that will buy it for $1,000 a month. So for this strategy to work,

you're going to want to back your way into your target purchase price. Now, this is kind of how inside of the academy the buy-and-hold calculator works. We start with your minimum desired monthly cash flow and it works back and it gives you your maximum purchase price. Kind of the same type of theory here. So you'll take your $1,000,

you're going to subtract the taxes, going to subtract the insurance. And what you're left with is the principal and interest payment of a conventional mortgage. So this is going to vary in every market because property taxes and insurance are different in every market. But let's say we subtract $100 for property taxes and $100 for insurance. So we're left with an $800 payment of principal and interest. That's our monthly payment. Now, if you have a mortgage calculator or you can just go Google, you can go Google one. There's all kinds of calculators. There's countless websites that have them. I mean, I think there's even one inside the Epic Pro Academy.

But the answer you want to know is, what purchase price would give you an $800 monthly payment, say at 8% amortized over 30 years? What purchase price would give you an $800 payment at 8% amortized over 30 years? Yes, for those of you, this sounds kind of like a word problem that I had in high school. Yes, same type of thing.

So what purchase price? We're back on our way into it. So the quick answer, that would be right around $110,000. So $110,000 at 8%, amortized over 30 years would be about an $800 payment. I think it's $807 or something like that. Now, add 10% to that. Add 10% to the 110. So that's going to give us $1,000.

So that $121,000, that's going to be the sales price of your property when you resell it with seller financing. That's the price point where it should be pretty darn easy that you're, you're, you're, If you sell it with seller financing, it's going to be the exact same purchase price monthly payment with seller financing, then it would be if that person was going to rent it. Okay, so that's how we found that. And why did I add the 10%? Well, what you're doing is you're making room for the 10% down payment that you're going to ask for from your buyer. I like to get more than that.

Some markets, you might not be able to get 10%. And that's going to be up to your discretion. It just depends on your market. And I wish this was a universal law, but it fluctuates when you go. You know, we got nice neighborhoods in this country at $50, $60,000, $70,000 purchase price, and we got stuff at $100,000, and we got stuff at $500,000. So that's going to fluctuate a little bit, so you could use your discretion. But for the purpose of this exercise, we'll just go ahead and we'll take 10% down from your buyer,

leaving them with a balance of $109,000. And that's going to give them that monthly payment right around $800. And then when you add their insurance and their property taxes to that $800, their monthly payment to own that property is $1,000. Hopefully you're following along. Maybe you have to rewind this. There are some visuals involved, but maybe I'll make an arrangement to go ahead and put a webinar on this so you can actually see it. But it is pretty simple.

If you just follow along with the logic, the numbers themselves don't matter as much. Okay. So if the numbers are confusing, don't worry about that. Just understand how we got here. So their monthly payment to own that property is $1,000. The exact same amount it would cost them to rent that property per month, the same as it would cost them to rent. All right. So the only difference here, though, for the tenant is that they'd have to come in with this 10% down payment. And I'll talk a little bit more about that in just a second. But they're still going to have to come with a down payment to get that monthly rent.

Now, the target sales price for you is $121,000. You know it's going to be fairly easy for you to sell this property for that. That you know you'll be able to sell it for $121. And by the way, that number has nothing to do with the comps, right? I didn't mention comparables. Did not do that at all. I did not remember. mention replacement value. It has nothing to do with an appraisal. This is not fair market value. It's not after repair of value. This is what we call the seller carryback value. Okay, the seller carryback value. That $121,000 it could be above or below fair market value and maybe significantly in some markets. It doesn't matter to you. Okay, it doesn't matter to you if this particular exit strategy is going to be your extra strategy to create cash flow in this manner. And here's why

this is important. Now that you know what you can sell it for, you now know, what you can buy it for, what you can afford to buy it for, right? You've got to buy lower than we sell. That's how we make money as real estate investors. And now that we know what we can sell it for, we want to make sure that we buy lower than that. Now, my rule of thumb is I don't want to go any more than 70% of that purchase price. I typically will stick right around 65%. That's kind of my number, 65% of the target sales price.

That's going to be my maximum offer for this property. I don't want to be in this property for more than 65% of the seller carryback value. Max is 65%. My starting position typically going to be right around 45, 50%, 45% of that number. So I go to my meeting with the seller with that number in my pocket. So $60,000 is my starting point. It's $60,500. That's 65% of 109.

Okay. And then, uh, wait a minute. No, that's 50% of the 121. Sorry. 50% of the 121. And then 78,000 is the max that I can pay. So that would be 65% of the 121. So that 60,000 is 50%. 70,000 is 65%. So that's my range. Now, as with every deal, there are still a lot of unknown variables that could cause me to be more strict with this parameter or could cause me to be more flexible. But I'm just kind of going in with the number. All right. So let's say the seller and I, we just agreed to a price of 70,000.

And that would be a number within my parameters. And that actually calculates to 58% of the loan to value. So next, I would open up my database of private money lenders. And I would borrow the $70,000 from a private money lender. Actually, I like to borrow up to the 65% as often as I can. I want to borrow up to that 65% loan to value.

Yeah, I borrow more money than I need. And here's why. I need money to eat. I need money to operate my business. I need money for the electricity to keep the lights on. I need money for gasoline to drive around and look at these houses. I mean, it took time. It took resources.

It took money to find this deal. In my time, my resources, they aren't free. So I'll borrow $78,000. I'm going to pay $70 for the property. I'm going to put $8,000 in the bank. Okay, I'll put that money in my pocket. I'm going to keep that at the side. And what am I going to do with that $8,000?

I'm going to go pay bills with it. I'm going to buy stuff, the same stuff that we buy every day. And another very cool thing about this $8,000 is it's not income. It's borrowed money, of which means it's tax-deferred money. I mean, as long as the loan is in place, is tax-deferred. Anyway, my typical numbers for private money is 7% to 9% for three to five years. Of course, I try to get that rate as low as possible and the term as long as possible. but in today's environment and for pretty much the last several years,

it's been between 7% to 9% for 3 to 5 years. So let's say for this example, let's say it was just right in the middle. So we got 8% for 4 years. That would be a monthly payment for me of $520 to my private money lender. Okay? Excuse me, a little under the weather. I'm hanging in there though. All right.

So $520 a month to my private lender. Now, when I sell this property, to my buyer, I'm going to ask for that 10% down payment, which is going to put $12,100, that's $10,000 of $12,000.2100. I'm going to put that in the bank and carry back the balance for 30 years at 8% of which would give me that $800 payment that we calculated earlier. So I would then send the private money note that I used to buy the property. I would then take that seller finance note that I used to sell the property. And I'd take those two notes, send them to a third party servicing company of which they're going to handle all of the accounting, all of the

collections, all of the disbursements, they're going to do all of that for me. And then they're just going to deposit my monthly income into my bank account. So let's add this up. I put $8,000 of tax deferred money in my pocket when I purchased it. I put $12,000 in my pocket when I sold it. And then the difference between the $520 that I owe to my private money lender and the $800 that I receive for my buyer, that's $280 of, is that right? Yeah, $280 a monthly cash flow that gets direct deposited into my bank account each and every month. You get it?

So, on this deal, I made basically $20,000 in cash and created $280 of monthly cash flow for just this one deal. Now, imagine if you did only one of these types of deals per month. I mean, what if you just did half of this deal a month? Let's say we did one a month. That's $240,000 a year. And you ended the year with $3,360 of monthly cash flow. Just one per month.

Now, you don't have to do just one per month. No, you can do more. Stephanie, if this is going to be your full-time gig, or if you want it to be, you know, what if you focus on doing two a month? How much is that? That's like, shoot, that's a half a million dollars of cash in your first year and receiving almost $7,000 a monthly cash flow, $6720.

And guess what? Here's the, here's kind of the icing. Yeah, it could be called icing. Sure, it's icing on the cake. You're not dealing with tenants. You're not dealing with repairs. You're not dealing with vacancies. You're not dealing with property taxes.

You're not dealing with insurance. You're not dealing with property managers. It's just straight cash and cash flow. Sounds like the perfect strategy, doesn't it? I mean, why would you want to do anything else? This is awesome. Well, it depends. It could be the perfect strategy.

And right now, Stephanie, I think this is a really good strategy for you to focus on right now. If this is, I don't know exactly where you're starting. I don't have a lot of details or information about where you are in your current situation, your resources and everything. But if you're starting from scratch or anybody that's starting from scratch, I think this is a good strategy to start with if cash flow is really your big concern. It's a solid strategy for getting started and put in some money in your pocket. But here's where it lacks a little bit.

You do miss out on some of the bigger profit centers in real estate. You miss out on the appreciation. You miss out on the benefits of leverage. You miss out on the benefits of amortization. And you're not hedged against inflation. And your money is taxed at the highest rate. So there are some cons to this strategy. As sexy as it sounds on the front end, you know, it has some cons on the back end.

So as nice as this sounds, you are still going to need a balanced portfolio. to experience all of the wealth creating qualities that real estate provides. This is just a good place to get started. And I shared this example specifically for Stephanie for two reasons. First, you can start putting some money in your pocket quickly. You know, when you purchase, you get to put some money in your pocket. When you sell, you get to put some money in your pocket while still creating monthly cash flow. And second, to demonstrate, you don't just need seller financing to quickly and easily create

monthly cash flow. Got it? all right yeah yeah i hear you i hear you but where do i find the private money right well it's everywhere if you don't believe it trust me and focus on finding the deals first just do that once you've got a deal in your hand you'll find the money or it will find you rather and we've talked about this ad nauseum on this podcast over the last several years from from this podcast conception we've talked about finding the deal first and the money's going to find you and if you're finding deals like this, if you're focused on getting good at finding deals, you're finding deals like this,

there is no shortage of money out there. I promise. Okay? Now, if you really don't have access to private money, I've got no friends left, I've got no family left, if you're part of that NFL club, have you tried Epic Fast funding? I mean, this is a brilliant use of these types of zero percent funds. You could literally run this plan right here for an entire year and pay zero percent. You could be your own private money lender.

You could be your own Aunt Sally. So go to Epicfastfunding.com if you haven't already and apply. It's a 60-second online application. No upfront fees. It's a soft pull on your credit. So it does not impact your credit score just for the inquiry. It does not. You're guaranteed to receive $50,000 or you pay zero fees.

And the average person in the epic community is receiving right around $110,000. All the way up, though, the max is $150. We have had some people that get the whole $150. It's the cheapest money in the market, even after you add up their fees once you've been approved and you've got your money, even after it still averages out to the cheapest money in the marketplace. So if you have a decent credit score and you're taking your real estate investing seriously, it's a little silly to not grab these funds while they still exist, right? So to date, more than $14 million has been funded right here to this community. So if you haven't gotten yours, go get it. You got nothing to lose and your financial freedom to gain.

Epicfastfunding.com. Okay? So let's pick up from where we left off last week around setting up for market domination in 2017. So grab some paper, grab white paper specifically, and make sure your pants got blue ink. So you need some white paper, blue ink, and we're going to get started right after this. You've got the knowledge. Now, get the funding. It's simple.

It's easy. Go to epicfastfunding.com. Get up to $150,000 in revolving credit lines for your work. real estate business. Use your funds for property purchases, renovation expenses, marketing, and promotion, anything your business needs. Go to epicfastfunding.com. Fill out their 60-second application and receive your funds in as little as seven days. Epicfastfunding.com. When you combine wisdom and leverage, magic happens. Epicfastfunding.com. Yeah, epicfastfunding.com. All righty, get your white paper and your blue ink ready. So why white paper and blue ink? Well, studies have revealed that this

combination actually can increase one's retention by more than 30%. So whether that's 100% accurate or not, I'm not entirely sure, just something I heard once. And so I've continued to say it ever since. And now that I've heard it, you know, why risk it, right? So get your white paper and blue ink and real quickly write down your current monthly cash flow number. That's the first number that I want you to write down your current monthly cash flow number what are you receiving right now monthly passively what's that number right now as you're listening to this episode if it's zero you're not receiving any monthly passive income right zero okay what's that number all right so right below that I want you to write down your monthly cash flow goal for 2017 what monthly cash flow goal would

you like to hit by the end of 2017. Don't need to spend a bunch of time on this. It doesn't have to be exact. You can always change it later, but just pick a number that if you reached it by the end of 2017, 2017 will have felt like a huge success. So go ahead and write that number down now. So you've got two numbers, right? You've got what you're making right now monthly and your passive income and what you want

it to be by the end of 2017, two numbers. Now the next number I want you to write down, I want you to get really, clear on this number is the difference between those two numbers. What's the difference between what you're making right now in monthly cash flow and what you want it to be by the end of 2017? What's that number? So if you're making 500 bucks a month right now in monthly cash flow and you want that to be 2,500 bucks a month by the end of 2017, the difference between those is $2,000. I want you to get really clear on that gap. number that $2,000.

Once you get clear on this number because it's significant, it's what I call ignorance tax. This is the difference between what you know and what you don't know expressed in a dollar amount. And right now, you're paying that tax every month. How does it feel? You're paying that tax every month. And that's what I want to help you stop paying. That's an unnecessary expense.

And I got to believe that. that if you already knew what I'm going to share with you over the next couple weeks, the next two to three weeks, you wouldn't be paying that number right now. If you knew what I was going to share with you over the next two or three weeks, you would not be paying that number right now. That's the difference. The next two to three weeks that we spend together is going to make for you. So if there's a cash flow number you're currently receiving,

and there's another number you'd rather receive, all it means is that something's missing. There's just something that's missing to make that connection. So let's look at that real quick. On that same piece of paper, write down this word knowledge. Write down the word knowledge. And on a scale of 1 to 10, 1 meaning I have none, no knowledge, and 10 meaning I have plenty, rate yourself in the knowledge department that you feel is required to reach your goal.

How is your knowledge, how do you feel about your knowledge on a scale of 1 to 10 about real estate investing and reaching your goal? One, I know nothing, 10, I know everything I need to know. Okay, so write that number down. Now, on that piece of paper, write down this word, time, time. And on a scale of 1 to 10, 1 meaning I have none, zero time, and 10 meaning I have plenty of time. I have all the time in the world. Rate yourself in the time department that you feel is required for you to reach that goal.

Okay? On a scale of 1 to 10 in the time department, how do you rate your time, your free time? So next, next word on that piece of paper, write down this one, money, M-O-N-E-Y. And on a scale of 1 to 10, 1 meaning I have zero money, and 10 meaning I've got plenty of money, rate yourself in the money department that you feel is required to reach your goal. Like if you have this goal of $2,000 that you, more that you have to make than you're making right now, if that's your ignorance tax $2,000, you know, based on your knowledge and how much money you think that's going to take to bridge that gap,

How do you feel about your money resources on a scale of one to ten? Okay. One I have none, ten I got a plenty. Lastly, last word on the piece of paper is credibility. Credibility. And on a scale of one to ten, meaning one, I have zero credibility. Ten meaning I have plenty. Rate yourself in the credibility department that you feel is required to reach your goal.

And what I mean by credibility, if I want to ask your family and your friends, your associates, said, hey, how's Stephanie? What does she like? On a scale of 1 to 10 in the credibility department. One being she's a total flake, 10 being she's a total saint. How would your friends rate you, Stephanie? That's what I mean by credibility. Okay?

And then in there, you can also, you can make a second column for credibility with credit, meaning your credit score. So on a scale of 1 to 10, how would you rate your credit score? Okay. So look at your situation here. Where are you strong? Where are you weak with regard to what you'll need to reach your goal in 2017? How about where you, the knowledge, the time, the money, the credibility. Those are the four things that you need to be a successful real estate investor.

Now, here's the catch. You don't have to possess all of them yourself, but you need to have access to them. So, for example, if you're short or shorter than you'd like to be in the knowledge department, you'll either need to make some sort of investment in your education. Could be a time investment, could be a monetary investment. Or if you don't want to do that, you'll need to partner with somebody that does have the knowledge you need to reach your goal. Or you hire someone that has the knowledge. Could be licensed professional.

Could be a mentor, could be a coach. There are many ways to go about it. Just know that if you're lacking in this area of knowledge, either you need to acquire it yourself or get access to someone else that has it. Got it? Now, if you're short on time, you're going to either need to give something up to make the time or you have to hire help or take on a partner or implement time-saving technology, specifically like systems, to strengthen your score in the time department.

Okay? So if you're weak there, then you're going to have to go to work on that. If you're short in the money department, then you're going to need to get access to it. That could be your retirement account, could be a bank, could be a hard money lender, could be a private investor, could be a partner, could be a friend or a family member, could be the government, could be from the seller of your deals, seller by the way of, in the way of seller financing, could be from the buyer of your deals. like if you're wholesaling, you're using end buyer's money to finance your deals.

Could be credit cards. Could come from your negotiating skills. It could be some of that intellectual currency. It could be epic fast funding. Or could come from a combination of anything that I just mentioned. Like any combination of any and all the above. And if you don't know how or where to look, well, that would be some more knowledge that you need to acquire, right?

See how this is all working? All right. And then same goes for credit or your credibility. You have to acquire it yourself. or get access to it. You borrow someone else's credit score, you borrow someone else's credibility within their network,

whatever they may be. So there are two points here that I want you to walk away with from this episode. First, you need all four of these. You need knowledge, time, money, and credibility to build a successful real estate investing business. That's the first point.

The second point is they are all easily accessible. If you looked at some of those things like, oh my God, I'm never going to get that. I'm so weak on there. I don't even know how to access that. Always keep this in mind. What's easy for you is difficult for someone else and vice versa. So as you're restarting your business or getting started for the very first time,

you've got to take inventory of your resources and your assets so you can create a plan that will actually work for you. You know, a breakthrough in your business. It's waiting for you by merely taking inventory of your resources and your assets and creating a plan to strengthen them. those weaker areas, as it's likely one of these areas that's causing you to pay that monthly ignorance tax. All righty, so I've walked you through a good portion of the exercise that I conduct to

restart my business, and I'll be doing this exactly with my team on December 1st, and if succeeding in real estate is important to you, and I've got to think it is, for else why else would you be listening? If your success in this business is important to you, don't. Ignore this practice. Don't ignore what we just did. If you want to stop paying that ignorance tax, this is where it begins by getting clear on what's missing in your business.

Here's what I'll do. Starting next week, starting on Monday, we're going to start from square one. And then every day next week, we'll cover a different aspect of the business. We'll start from zero and create clarity around this business, create certainty around the business. and keep it simple so that you can actually execute your plan and achieve in 2017 the goal that you set for yourself just a moment ago.

Deal? So starting my day. We'll break from a bit and we'll check in daily. Okay. We're going to break that we'll be out of form, I guess. We're going to break from our normal schedule. We're going to check in daily next week, Monday through Friday. So we're going to be building or rebuilding your business from the ground up.

Cool? All righty. Oh, and something else that I'll be doing every episode in the month of November. This is tradition. I do it every year now. I'll be giving away a $100 gift card to Amazon.com right here on the air. And here's how you win each episode. I'm going to head over to iTunes and I'll type Epic Real Estate Investing into the search window.

I'll click on this podcast, then click on the ratings and reviews. Then I'll go ahead and I'll spin the mouse or the scroll bar, if you will. And I'll stop it on a random interview. and then I'm going to reward that person with a $100. Amazon.com gift card that you can use for yourself, or you can use for the holidays. You can use it for financing that first deal, whatever you want. So that's how it works.

Every episode in November, I'll give $100.000 Amazon.com gift card away. And if you've already left a review of this show in the past, then there's nothing for you to do. You've already entered. You are entered, and you're entering each and every year. And if you haven't visited iTunes to give this show a review and you'd like to win one of these $100 Amazon gift cards, then go to iTunes, find this podcast, the Epic Real Estate Investing Podcast, click the subscribe button and leave a review. And it doesn't have to be a five-star review either. No, it would make me feel really good if you did leave a five-star review.

But give it to me straight. Let me know what you think of this show. All righty. So that's it today. And I will see you next Monday. We're going to get started building your business from the ground up. We're going to get started building it or rebuilding it, depending on where you're starting from, from the ground up.

All righty, God bless. And to your success, I'm Matt Terrio, living the dream. You've been listening to Epic Real Estate Investing, the world's foremost authority on separating the facts from the BS in real estate investing education. If you enjoyed this show, please take a minute to visit iTunes and share your thoughts. Thanks for listening. We'll see you next time here at... Epic Real Estate Investing with Matt Terry O.

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