Epic Real Estate Investing - How to Find the Real Estate Strategy That is Best for Me | 1100

Episode Date: November 24, 2020

The MINDSET is the key factor that determines whether YOU are going to become a successful real estate investor or not! Therefore, in this week’s episode, Mercedes, The Turnkey Girl shares how to change your thought process and how to choose the real estate strategy that not only will fit you but help you reach all of your DREAMS! Tune in and find out more! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terrio Media. So you want to be a real estate investor, but you don't want to do the work. If there were only a way where someone else could do it for you, now there is. Tune in here each and every Tuesday on the Epic Real Estate Investing Show for Turnkey Tuesdays with your host, Mercedes Torres. Hello and welcome, welcome to Turnkey Tuesdays brought to you by Epic Real Estate Investing. My name is Mercedes-Torres. turnkey girl, and I am lucky enough to be partners in crime with Mr. Matt Terrio, the guy who

created the epic real estate empire. If you're just now tuning into our show, this is a show about a small niche in real estate, small but growing really rapidly in popularity, called Turnkey Real Estate. In other words, it's real estate done for you. Now, I created this show catering to busy professionals who understand the importance of real estate, but either they're just too busy with their own lives to embark on taking on real estate and learning every single detail there is to learn about acquiring real estate properties. Or they're just flat out too afraid of investing in real estate despite how lucrative they know it can be. So this show is is designed to help you learn about real estate investing while somebody else does it for you

and you get to take a seat and watch and learn every step of the way. That said, this week I'm going to dive into talking about a really important topic about real estate that often flies under the radar. I mean, it's super underestimated, but it's actually so. important. It has the potential of determining if you are going to be a successful real estate investor or not. It's simple. It's mindset. I know, I know you're thinking, what the heck does my mindset have to do with real estate investing? Well, I'll share from my personal experience because I'm lucky enough to speak to many, many clients when I do a passive income audit. Now, I'll explain to you what a passive income audit is because I realize the title of it

can be misleading. But basically, what I do in an audit is I break down an individual's finances so they can get out of the rat race. Now, when Matt and I started investing in real estate, nobody broke down anything for us. They didn't break down strategies for us. They didn't break down, you know, ROI, NOI, cash flow, none of that. And even deeper, nobody broke down the numbers. Like what needed to happen in order for us to escape the rat race?

And so Matt and I went out when we created Epic Real Estate and Cashflow Savvy. And we designed this system called the passive income audit that really extracts information from your personal life so that you, you can know exactly how much you need to escape the rat race. And when I mean how much you need, we talk about not only the finance aspect of it, but the time that you need, the knowledge that you need. So it breaks it down into small minutia's. But when I do these amazing audits, what I find super interesting is that people are trying to escape the rat race with old thoughts about finding. finances that no longer pertain to our life today. I mean, these thoughts may stem from what they've been

taught about, you know, finances in their world. So it's no fault of their own. Because for the longest time, you've probably heard the same things, and this may be familiar to you is, you know, you go to school, get good grades, get a good job, and safe. Well, that's what I was taught. You know, my parents were immigrants to this country. So we were taught exactly that. You go to school, you get good grades, you get a good job, and you save your money. And while that worked for many, many years ago, if you do the math today, it doesn't work. And what happens is you find yourself doing exactly that and you've been doing that for a long time. And as life continues to happen, it hits you that you're running out of time, that what you've been doing and what you've been

able to save so far is not going to be enough for you to retire. And you feel stuck. So you start looking for a plan, right? A solution, a way to help you out of this rat race so that you can retire comfortably. And you start digging and you start doing research and what you discover. is that real estate is the final frontier where the average person has a legitimate chance of creating real wealth. You hear us say that often. But you think to yourself, how do I do it? How do I make this happen for me? And then you start spinning your wheels and you start doing research and you follow this

guru, you follow that guru, you try a little bit of this, you dabble a little bit over there, and then you get discouraged because nothing is patting out the way that maybe you had hoped. You're stuck. And what happens is you're stuck in your old thoughts and you can't seem to make sense of things or you can't quite wrap your head around what needs to happen to make your future brighter. I'm actually reading this really cool book called Breaking the Habits of Being Yourself by Dr. dispensive. He talks about how your thinking affects your future. Basically, the thought process of thoughts become things. Now, I'm going to share an excerpt from his book because as I speak to all of these

people on a regular basis, and I see how many people are stuck in their own head and in their own thoughts about their financial situation, I think that this excerpt applies perfectly. And he writes, to experience change, we must observe a new outcome with a new mind. Quite simply, our routines, thoughts, and feelings perpetuate the same state of being, which creates the same behaviors and the same realities. So if you want to change some aspect of your reality, we have to think, feel, and act different in a way so that we can produce a different outcome. We have to be different in terms of responses and experiences.

We have to become someone else. We have to create a new state of mind. We need to observe a new outcome with our new mind. So that's what Joe Dispenser writes. And I know, I know, it sounds hokey. It really does. probably thinking to yourself, Mercedes, why are you reading this to me? But I have to say, because I've seen it for years, time and time again, those old thoughts have

gotten you to where you are now. But they're not getting you anywhere further. So you have to change them. You know, it's that definition of insanity where you do the same thing over and over again and you hope for a different outcome. Well, this is exactly what Dr. Doe Despenza is talking about. And it's common sense. You're stuck because you haven't been taught anything different. Now, when you take on real estate, you should embark on this real estate trajectory with an end goal in mind. Because real estate is all about you, your needs, your goals, your time. So if your goal is to replace your job with the income from passive income, be very specific of what you want that income to be.

Now, if you're stuck on what strategy you should embrace, I really urge you to consider the basics of real estate. So these four little basic components of real estate, everybody needs them. Now, they're not in any particular order, but in order for you to succeed in real estate, you must have one, two, three, or four of these items. Okay? Number one, you have to have time to do real estate. Number two, you need to have the knowledge to be able to execute real estate. Number three, you need to have money or access to money in order to do real estate. And number four, you need to have some type of credit for real estate.

Again, it doesn't necessarily have to be yours, but you do have to have access to it. And that's the beauty of real estate. These four components are critical to making real estate happen. But the beauty of it is you don't need all four of them yourself. For example, you may have the credit and, and the money, but you may not have the time or the knowledge. That just means that you are able to execute real estate if somebody else takes the time who knows what they're doing to do it. That could be a partner in real estate or that could be depending on a turnkey operation. Regardless,

Once you decipher what you can bring to the table and what you're lacking, everything else is easy. Let's just say, for example, you do have the time and the knowledge, but you don't have money or you don't have credit. That just means that if you did all the work and you found a property, then all you would have to do is find somebody that has the money, and or the credit to be able to do that deal. That's where you start to eliminate. Okay, I may have a deal that I found that's a great deal, but if I can't do it, I may be able to sell it or to assign it or wholesale it. There are an array of different things that you can do once you find the deal,

but that's exactly my point. you can have two or three or one of the four components that you need for real estate and still do real estate. Again, you have to be clear about what you possess as far as these four components and the rest is easy. Feeling in the blanks is a lot easier than having to come up with all four components. Now, I will share once you've changed your thought process, once you're able to wrap your head around, okay, I need to do something different to get me out of the rat race, the rest is pretty easy because I'm going to give you three key elements that are really important to helping you choose your strategy that's going to not only fit you, but that it's going to help you get to all of your

dreams. That's going to help you pave a clearer path to what your goals are. Now, you've created this vision. And key component number one is, I need for you to really, have a clear-cut vision of what you want to accomplish. And I do mean clear. And what I mean by clear is I mean specific figures. I need for you to get as specific as possible with what you are trying to accomplish. And that could mean specific not only in dollar amount, but I need for you to also be specific with your property type. And we'll dive into a little bit of that. But a successful investor starts off with a very clear net worth or passive income goal. Whatever that is, I want you to be specific and write that down. And in addition to that, I need for you to be specific with your time frame. If you want to achieve your goal in two years, five years, 15 years, whatever that is, be specific. And once we get to that number, once we etch it in ink, we will not change it. Now, I guess you could change it.

But the beauty of about creating that vision is if you place it in writing and you put it up on the wall somewhere where you see it every day, it just becomes a given that you will achieve that goal. Now, I speak to so many people that get on the call with me and what they bring to, to the table is, I'll buy one house and I'll see how it goes. And so that doesn't work because that is not a clear, concise plan of what we're wanting to do. And that creates failure. Easily, my clients that do not have a plan are set to fail. So do not hop on and embark on this journey unless you have a specific vision with specific figures about what you want to accomplish. Okay.

Number two, strategy. We want to decipher in our mind and do enough research at whatever strategy is going to help us achieve our goal. The strategy should be simple, repeatable, and scalable. So whether the strategy is wholesaling or fixing and flipping or finding that perfect turnkey provider, create a strategy and a system that is going to allow you to duplicate it over and over again. Remember, creating passive income and your real estate portfolio, it's not a one done thank you, ma'am, kind of a thing. No, it is a process.

It is something that we keep doing over and over again because you're not going to get rich just on one real estate investment transaction. You're going to need several. And hopefully with the vision and the specific figures that you've already spoken into existence, that's going to give us a very clear-cut vision of what it is that we have to continue to do. and it most likely is not just buying one property to buy and hold it. Okay. Step number three is create a plan. It isn't one or two houses that we're just going to do. We're going to set up a goal.

And that goal is going to be to define the strategy. Because once we define the strategy, we now begin to implement the strategy. Now, I want you to take this on, not like a hobby, like a full-on business endeavor. I want you to take it on with a 20-year retirement plan in vision. And your plan might be five years, your plan might be 10-year, whatever that number is, you've got to treat it like a business and you have to have an exit strategy. And that exit strategy should be equivalent to the time that you want to get out of the rat race. Okay. another thing that I need to say about the plan that you're creating is you have to have discipline within that plan.

So if your plan is to buy one passive income property a year or three of them or to do one buy and hold, one wholesale and one fix and flip a year, whatever it is that you do within that plan that you create, you have to absolutely discipline yourself to be able to achieve. that goal. And also, just on a side note, when you create this plan, I want you to create a separate account for your real estate. I don't ever want you to commingle your funds with your everyday life and whatever it is that you're making from your day job. I want you to keep it separated from what it is that you're looking to achieve in real estate. Separate account, separate everything. Okay, it's very, very helpful to really segregate your everyday life with your real estate professional life. Identifying your niche very early on in your career is critical. Now, that's not to say that the niche might not change.

And sometimes it happens where my real estate investors get really, really involved in just buying one property a year. One becomes three properties a year. Then it becomes five properties a year. and then before they know it, they can quit their job. But I want you to start off with that, and I want it to be quite simple for you, because what I've learned throughout the years is if you keep something simple, you'll keep doing it over and over again.

Don't overanalyze things. Don't make things more complex than they need to be. Sometimes buying and holding a turnkey property, it could be so simple and boring. But that quite simple thing and boring thing will work throughout the years. And it's those small little things that you will do throughout the years that will start building a bigger portfolio. And also, it helps really quite a bit to start small. And I know that your goal might be, you know, to retire and maybe you want $10,000 of passive income every month. And trust me, that can happen.

I speak from experience, it can happen. But it doesn't happen overnight. And it may start with only one property that cash flows $150 a month. That seems so far away from $10,000 a month at passive income. But if you start small and you maintain consistency with what you're doing and the whole time you're keeping your eye on that goal, on that vision that you're, you've created, you can absolutely accomplish it. Now, you set yourself up to fail if you aren't specific to what you're looking to accomplish. I often call those people, I call them the people

that suffer from the shiny object syndrome because they're always chasing that pretty shiny penny. You know, I have this client that I've worked with him for several years now, but he would have been so much farther in his trajectory if he didn't stop buying and holding properties to do that one little wholesale real big deal that he just got under contract that would take him, you know, four months to execute. If he just kept on the plan, he would almost be at his end zone, if you will, had he listened to the plan to begin with. So, you know, don't get distracted by the shiny object because it does happen. And, you know, that itself, it's a perfect equation to failure. If people don't set, like set criteria, specific criteria, and it just won't work.

You know, if you are one day thinking, okay, today I'm going to be fixing and flipping, and another day you're thinking, I want to wholesale. On another day you're thinking, I'm going to buy multi-family buildings. That is a perfect recipe for disaster, a loss of money and failure. Now, successful people are very nichey. You know, I often talk about my mastermind group. I belong to a couple of mastermind groups that they're everything because in those groups, I'm alongside with people that buy 20 properties a month. I have so much to learn from that person that's buying, you know, 20 to 30 properties a month. But what I notice is every single person in my mastermind group is very specific and very nichey. They're successful because their

criteria is down to the dollar. It's a specific strategy. It's a specific type of property. They have a specific number in mind, whether it's the number of doors they have to accomplish every month or whether it's $5,000 a month at passive income, whatever it is, you have to be specific with yourself. So when you embark on this journey, it's important that you say, okay, I am going to seek $5,000 a month in passive income or I want 10 single family residents in six years or I want to replace my spouse's income with $3,800 a month and passive income. Or I want my net worth income to be a million dollars by the time I hit 50 years old. Whatever it is, it has to be clearly defined and specific.

I try really hard to break down the difficulties of real estate into tangible, believable, compartments so that you can take the information and run with it. And that is my whole goal with today's episode. I want you to really embrace that you too can escape the rat race, that you two can change the potential legacy of what you leave your children or your loved ones, what you leave behind because it's up to you to make the necessary changes in your world so that you can make a difference for the people in the world that you leave behind or for the people in your world today. And the best part of this whole real estate investing endeavor is you never have to do it alone with the right resources, the right help, the right mentor.

just the right connections. There's so much at your fingertips, and most of it is only a few clicks away or maybe even a phone call away. Now, if you'd like our assistance and helping you steer your boat a bit better, feel free to contact our offices or email me Mercedes at Epicrealestate.com. Or if not, go to cashflow savvy.com. scroll to the bottom of the page and click on the rat race escape plan because that rat race escape plan was created by myself and Matt because when we started to do real estate, nobody taught us what needed to happen to get out of the rat race. So you can have it for free at cashflow savvy.com.

That's savvy with two Vs. Scroll to the bottom of the page and in the middle of the middle of the way. of the page, you'll see the deal of the week, but in the bottom of the page, you can download your own rat race escape plan. My friend, that is it for today. My name is Mercedes Torres, and I will catch you on next week's episode of Turnkey Tuesday. Have an epic week. Do you have doubts about your current plan for retirement actually panning out? Imagine revolutionizing your retirement plan so it pays you right now and in retirement. Change one thing. one time and that revolution can be yours. That's bad news for Wall Street, but great news for you.

We're cash flow savvy, and we'd like to offer you free information that will show you how one simple tweak can cause your retirement plan to pay you right now and in retirement. And it's yours for free. For the secret your financial planner doesn't want you to know, go to cashflowsavvy.com. That's cashflow savvy.com. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.