Epic Real Estate Investing - How to Find the Money for Your Deal | 3rd Degree Thursday

Episode Date: August 21, 2014

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Hello and welcome. Welcome to Third Degree Thursdays. This is the show where I subject myself to you, giving me the third degree. All righty. So since launching this new episode of the Epic Real Estate Investing podcast, you know, I'm getting lots of questions and comments in. And I've also decided to, you know, just go back through my email history and look for questions that have yet to answer via email. And I found this one. It stood out to me from Rick Randall.

And Rick writes, and it's kind of long. so I'm going to paraphrase some portions, but Rick writes, Hi Matt, I'm a coaching student of yours. I had a brainstorm and I want to share. I understand that many people are turned off of investing in real estate because they think that they need the money to get started. It's unfortunate because I believe people are conditioned that way by traditional real estate lenders and realtors.

When going to a realtor, they first ask you to get prequalified and only after you are prequalified while they show you properties. Also, I just visited the HUD website, and their first step is to get prequalified. They are teaching us to be limited in our thinking. My purpose of this email is to share my ideas and findings and ask your thoughts on this. Thank you for your contribution to the real estate investing world, Rick Randall. All righty, so thank you for that, Rick, and long time, no talk, by the way.

Hope all is well with you and your wife. Good to see your name in my inbox. Okay, so my thoughts on this. Why did I pick this out? Okay, why did I select this email to answer? Well, first of all, yes, Rick, we are conditioned this way. And it's not just with real estate. I guess it's with everything.

We're taught that we need to find the money before we buy something, right? We're taught that we're conditioned to go find the money first before we find the deal. But here's the more important thing to point out. In this scenario that you laid out, like working with the realtor, working with the HUD, in this scenario or this situation, who has control here? Who has the control in this situation? They do, right? And why do they have control? because they have access to the deals.

They have control of the deals. The person with the deal runs the show. See, you have to play by their rules. And because they have the deal, you know what? The money finds them, doesn't it? I mean, people routinely walk into their office looking for real estate to buy, right? People with money looking for real estate to buy. People routinely visit their website looking for real estate to buy.

In fact, there's so much money available. There's so much money walking into their office, visiting their website, whether it's a realtor or it's HUD or it's an auction. They make the money actually jump through hoops. There's so much of it they can do that. They make their money jump through hoops. In other words, they make the money get pre-qualified. They make the person get pre-qualified because they want to make sure that they're working with the best money. They want to make sure that they're working with the strongest money.

They want to make sure that they're working with the money that's most likely to close. They control the deal. So they make the rules. They find the deal first, and then the money finds them, right? Yes, this is exactly how it works with realtors, how it works with HUD, how it works with the banks, how it works with auction houses, how it works with the courthouse steps. And this is how it will work for your business too. If you place your focus on first finding the deal. You know, here we are almost four years, I guess a little over four years now of this podcast,

150 plus episodes into this show. And my message has not changed. First, find the deal and the money will find you. That's how you find the money for your deals. You find the deal first. And it's funny, you know, after all this time that I've, you know, approached that message from so many different angles, after all this time, I never thought of using the example of a realtor or an auction to demonstrate this.

So, outstanding observation. Outstanding observation, Rick. And thanks for sharing that, by the way. So that's how you find the money for your deals. First find the deal. And then the money will find you. It's how it works out there in the real world. It's how it's going to work with your business too.

First, find the deal. And then you run the show. Then you get to make the rules. And you can set yourself up so that people have to get pre-qualified to work with you. That's your buyer's list, right? Absolutely. But ain't no one coming or not going to

to buy your deals unless you got one. You know, you can work your business and set your business up any way that you want, whatever you want. Finding the deal here, though, that's the most valuable part of the real estate investing equation. When you find the deal,

you call the shots. And you know, the only time, there is one time that this doesn't work. I want to be fair. I want to be straight with you. there is one time that this doesn't work. There's one exception. And it's the only one that I can think of.

One situation in which this would not work. If the money doesn't find you, it means you don't have a deal. I know. I know. That can be a tough scenario to come to grips with. A tough pill of reality to swallow. It's tough sometimes, especially after you've put in so much work in marketing. You're qualifying the same.

seller's motivation, you're negotiating a deal, you're getting that deal signed on a contract, you're going through everything you have to do to secure a deal, and then the money isn't finding you? I know it can be disappointing sometimes, and it happens to the best of us. But really, if the money isn't finding you, it means you aren't finding deals. And there's evidence of this all around, and it's in every market. That does not fluctuate with the market. And here's what I mean.

you know, just this past week at my mastermind group, and this happens all the time, but this just happened this week. I met a father and son investing team that are in charge of a very large chunk of money for some very important people on Wall Street. And their mission is to buy 200 properties. I'm sorry, 200 properties a month. That's a lot of money. That's their task.

And they're having a challenge just picking up 50 a month. but they have enough money to buy 200 properties a month. And that's just one of many countless examples out there. The money is out there. Find the deals and that money will find you. There's plenty of it. There's more than enough. There's more money than deals.

So that's how you find the money. You find the deal first and the money will find you. So thanks Rick for sharing. And should you have a question, comment or concern that you'd like me to address here live on the show, send it to me at Matt at Epic Real Estate.com and type third degree in the subject line. Or leave me a voicemail on the Epic Hotline at 188-891-7203. See you tomorrow for a new episode of Financial Freedom Friday. This podcast is a part of the C-Suite Radio Network.

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