Epic Real Estate Investing - How to Retire Early | 940

Episode Date: February 26, 2020

Unless the world's population is open to a significant paradigm shift around how they view money and building wealth, very few will ever be able to retire early, if they ever get to retire at all! Therefore, in today’s episode, Matt is not talking about boring ol' retirement, he's talking about how to retire sooner than later! Tune in and find out more! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terrio Media. Success in real estate has nothing to do with shiny objects. It has everything to do with mastering the basics. The three pillars of real estate investing. Attract, convert, exit. Matt Terrio has been helping real estate investors do just that for more than a decade now. If you want to make money in real estate, keep listening. If you want it faster, visit R-E-I-Aase.com.

Here's Matt. Hey, Matt here. Welcome to another episode of the Epic Real Estate Investing Show. It is way back Wednesday. This is the day where we reach back into the archives and pull out old classic episodes. And we've been reaching back into the archives of the Do-Over podcast, the podcast that started it all. And I got another great one for you today. Enjoy.

During an era where countless people, businesses, and organizations are feeling the pinch, running out of time, running out of money, losing confidence, feeling as if life is unfair, praying for another chance, and unless something is done, life is going to pass them by. Fortunately, in the nick of time, there is now a place where the ignored, underestimated, and unknown steps to producing results, and making life work are revealed. Save your career. Save your business. Save your health.

Save your relationships. Save your life. Get from where you are to where you want to be, faster and with greater ease than you ever thought possible. Say hello to your do-over. Welcome to Your Do-Over, the place where I show people who want more out of life. I show people dissatisfied with their current situation. I show people who are just sick and tired of being sick and tired,

or even people that are cool with life. Like, life is cool, but they just want a little more out of it. I mean, this is the place where I show them all, how to start over and begin a new life, setting goals and objectives so that they can create wealth, create financial freedom, create the lives of their dreams, and they can live that life to the fullest. And you can get your do-over started fast by laying a solid foundation. Everything needs a good foundation for it to last, and you can do that when you download the three pillars of creating the ultimate do-over for free at free-dover.com. It's a 55-minute MP3 audio program that I made just for you with three specific steps on how to get success as you start over. And it's yours for free at free do-over.com. Okay.

So, before we get on with today's show, got a quick announcement. A while back, I mean a while back, I had an episode discussing passive income, I think. I don't remember which episode actually was, but it was one of the earlier ones, very early in the show's story. And I mentioned how it was easy to find investments of $10,000 that would pay you $200 a month and passive income. And at that time, when I broadcast that show, it was very easy to do. And I actually forgot all about having said it, really.

And the funny thing, within the last three to four months, I've probably had at least a dozen inquiries on that old episode. And I'm not sure exactly what that says about. what's going on in the market or the economy or maybe the listenership is just broadening and it's increased to a point where now there's just a more listener so we get more response. I mean, whatever it means, I haven't had any strong leads on investments with those types of returns on such a small investment, however. I mean, they kind of evaporated actually rather quickly until just recently.

I've put together a program for some of my real estate investing clients that produces pretty close to that ratio. It gives that very similar return. it takes a little bit more to get into the deal, essentially double the entry. So it's not 10,000. It's going to be about around between 20 to 25,000. But it also doubles the return. So you're probably going to be looking at anywhere from a $300 to $500 monthly cash flow.

So very comparable, just a little bit higher entry level. But I'm not going to take up any time with the details here. But just thought this was the easiest way to get the message out to everybody about this since there been a recent influx of inquiries. I imagine there's probably others out there that were thinking the same thing that haven't had the opportunity to send me a message. So I just thought it'd broadcasted here, okay? So you can go to cashflow savvy.com to get the details.

Cashflow savvy, savvy, vv-y.com to get the details. If that sounds like something you'd want to learn more about, okay? So go to cashflow savvy. And we'll be done with the real estate talk for this show, all right? So with today's episode, today's episode is how to retire early. And if you want to retire early, I'm going to tell you right now, it's going to take a major paradigm shift on your part. You're going to have to open up your mind.

You're going to have to let me stomp all over everything about money and investing that you hold near and dear to your heart. I mean, if you're open to that, I think there's a lot for you to get out of this episode. But if you're not, if you know you are stuck in your ways and you're going to write out the plan that your financial planner laid down for you, you're probably going to hate this episode. And, you know, I won't be offended if you turned this off.

If you skipped this episode and just rejoined me on episode 57, that would be 100% okay with me. All right, so you've been warned. Now, what has inspired today's episode was I haven't visited iTunes in a while to read any of my reviews. And I was really blown away, humbled, is another word for it. I mean, some of the things that you have to say about me about this show and what this show has done for you in your life, humbling to say the least. I mean, it's difficult to grasp that you're actually speaking about me when I read your reviews. So before I go off on my rant, I want you to know how grateful I am for you sharing your thoughts and comments with me and sharing those comments publicly. You've just been very generous with your comments and you have no idea how much it's not.

touch me. So thank you very much. Now, during this same trip to iTunes when I was reading the reviews, I also checked out the iTunes podcast charts. And I just wanted to see, you know, what are people listening to and who was at the top? And, you know, I, you know, selfishly, I was actually very interested in where I ranked in the charts as well. But, you know, some of the names that I saw sitting right on the top, they just totally blew me away. I mean, I had no idea. And it's these podcast hosts and what they preach that has inspired today's episode. Now, I don't do this very often if I've really, I don't know, if I've ever done it at all, but I know I won't be able to help myself, meaning I won't be able to avoid getting up on my

soapbox here and unleashing the ballistics. When I was in the music industry, we called it kicking the ballistics, about to let someone have it. And I won't mention any names. I mean, no need to. They're all pretty much household names, and you're probably going to figure it out anyway. So they shall be nameless. And if you haven't guessed, you know, how to retire early, this is a money episode. It's a creating wealth episode. It's about getting rich.

It's about achieving financial freedom. Whatever label you want to put on it, today I'm going to wrap it up in a neat little package, and I'm going to call it How to Retire Early. Now, astonishingly to me, some of these podcasters, they've had, had some, they have some of the highest rated shows on iTunes and not just in their category, but over all podcasts. And it's this theme that they all have in common. You see, there's this trend of promoting get rich slow.

And, you know, it only makes sense that this would be the case given the huge financial crisis that we've experienced recently. And depending on where you are and what you're doing right now, I mean, you may still be experiencing it. And if you are, no worries, this two shall pass, and the best is yet to come. Just don't roll over and surrender. Don't throw up the white flag just yet. You will pull through.

You always do, right? I mean, aren't there times in your past where you felt maybe just as depressed or even more so, or desperate or helpless? Or hopeless? Of course you can. You can think of moments of like that in your past. And here you are. You pulled through it, didn't you?

well this is just like that this two shall pass and the best is yet to come for you i mean there's a favorite quote of mine i think it was Winston Churchill and he said if you're going through hell keep going see stopping is the worst thing that you can do you're going to get burned burned up actually so don't stop just keep moving and this two shall pass i promise okay all right so during the the first half of 2000 when you know money seemed to be just falling from the sky and everyone was throwing it around like the supply. It would never end. I mean, there's just this endless supply of money, it seemed like. And here we are today where the people who have money left are holding onto it with a real tight grip, right? And it's easy

for the financial experts, and I did that little thing with my hands up of the air, the air quotes, experts to look back and say, I told you so. Because they're saying it. They're saying it loud and clear. We told you so. We told you not to do that. You should have stuck to good old-fashioned values and get-rich slow programs just like your grandparents did, and their grandparents, and their grandparents. Get rich quick is a scam. Don't you know that? That's what they're saying, right? Well, I'm here today to suggest get rich slow is an even bigger scam.

And here's why. See, if you want to create wealth and creating wealth slowly is your strategy, here's the truth. you've got better odds in Vegas and not only do you have better odds in Vegas you've got less to lose you see Vegas may take your money but creating wealth slowly can take your money and your life

I mean seriously are you going to tell me the guy that drives the peach Lamborghini around town and parks it in the garage of his oceanfront mansion created his wealth investing in stocks, bonds and mutual funds or he brown bagged his lunch to work every day to save some pennies, or he clipped coupons and he refrained from the daily mocha frapachino just to get that peach Lamborghini? No, right?

Then why do we accept frugality, investing in mutual funds, and coupon clipping, and eliminating our daily Starbucks, why do we accept that type of advice from the experts as the path that leads to wealth and happiness? I mean, where's the 20-something guy that created wealth clipping coupons.

Where's the girl who created wealth in three years by setting aside 10% of her paycheck? Oh, and where's that 27-year-old woman who retired after four years from maxing out her 401K? Can you introduce me to any of these people? Let me answer that for you. No. You can't because they don't exist. These are stories of pure fiction. However, the vast majority of the population embraces these ideas and strategies promoted by the get-rich-slow gurus for creating wealth.

I mean, the plan in its entirety looks like this. Go to school, get good grades, get a good job, and work there for 50-some odd years, set aside 10% of your paycheck, clip coupons, max out your 401k, buy a house, pay the house off, right? you got to pay the house off, cut up your credit cards, and then one day right around the age of 70 or so, you will finally be blessed with financial freedom. Oh, and if you live super frugally, if you do it right with real focus and that dollar cost average thing pans out for you,

you might even arrive a decade earlier. Waiting until 60, age 60, to enjoy your financial freedom. That sounds fantastic, doesn't it? Not? What should absolutely terrify you is, what if that mutual fund did not perform in the way your financial planner said it would? Again, I did financial planner with those little air quotes. What are you going to do if it didn't perform in the way that he promised?

I mean, what are your options at age 70? It's not like you can go back and do over, is it? I mean, at least Vegas may only rob you of your money, and it might steal a weekend from you. Creating wealth slowly will rob you of the best years of your life. Not convinced? Ask the 97% of today's 65-year-olds that don't have enough discretionary income

to write a $600 check. 65 years old, they've been working their entire life following this madness. And they don't have enough discretionary income to write a $600 check. 97% That's not my statistic That's a government statistic It's not my opinion It's the numbers

You know Considering today's turbulent And volatile economy It's staggering That anyone still subscribes To these creating wealth Slowly strategies Face it, to create wealth slowly

You must sacrifice your today And your dreams For an idea That doesn't pay off If it ever does Until the glory days of your life are behind you. I'm going to sum it up.

I'm going to give it to you straight. If your do-over or your life for that matter, even your first time around for that matter, consists of creating wealth following a plan that consumes the best and most active years of your life without a guarantee, I'm terrified for you. But if that is indeed your plan

and you're sticking to it, how can I blame you? I mean, it's been ingrained in our psyche for generations. And what's worse is that there's a respected and growing crew of gurus advocating this plan. They're flooding the airwaves with it, radio, TV, and podcasts. They're among the top-rated podcasts on iTunes. The most popular music distribution service in the entire world. This crew is growing because they have a secret.

They actually have two secrets. They know you'll pick up what they're putting down because of the current state of the economy. It just seems like good sense right now. And their second secret is they know what they teach will not create wealth, but selling it does. See, they are making a killing by peddling this stuff.

And they may be practicing what they preach. They might be invested in stuff. stocks and bonds and mutual funds. I mean, much of what they preach can preserve wealth, but it will not create it. But selling it will. It may create the wealth.

But not at any point where you're going to be able to enjoy it. So what's the answer? I mean, you do have to invest in something, right? I mean, exchanging time for dollars isn't going to create your wealth either. So if that won't do it, and the guru's recommendations aren't going to do it,

what do you invest in? How do you invest? Do you know how to invest? Do you have an investing goal at least? My grandmother has one. I mean, she prays every month when she receives her statement that it's not too much smaller than last month.

That's her investing strategy. Don't get small too far. fast. Don't reduce in size. I don't want to lose money too fast. It's no joke. That's what she told me. In fact, a couple of years ago, some of her stocks, they took a big hit. I think two or three years ago. Like collectively, together they lost 40% of their value. I said, Grandma, you should pick up some rental real estate and create an income for yourself. He said, oh no, dear, that's too risky. Real estate is risky. And in my mind, I was like, I didn't say this but in my mind I was like, are you serious?

You just lost 40% in six months in the stock market. And real estate is risky? I mean, most people don't even see their statements as money. It's just a statement, just numbers on a page. They don't even treat their savings or their investments and their retirement accounts like money. They act as if they have no control over what happens to it. It's insane.

It's real money. If you're getting statements, it's real money. It's your money. And you can do with it what you please. You have so much more control and power over your finances than you choose to declare. Then you choose to open up your eyes and recognize. Do you get that? You choose not to control your money.

You make that choice. You turn it over to someone else hoping that they know what they're doing. I mean, it's amazing how important financial freedom everybody will say that it is to them. But they're financially ignorant. It's so important that they don't know anything about it. They have no idea what to do with the financial resources they have to create financial freedom, nor do they bother to investigate and learn what to do.

But it's so important to them. I got news for you. No, it's not. It's not important to you at all. You'd rather complain than do something about it. there's a, there's a bigger payoff in complaining about it than actually achieving it. Painful, huh? I mean, if it wasn't, you wouldn't complain about it.

You'd do something about it, right? So, so what's your investing goal? What is your investing goal? If you don't have one, now is the time to make one. Okay? But what's your investing goal? Well, unless you state a number in the form of a monthly residual income, you, are confused.

You are trapped, you are stuck, and here's why. You see, you and I were raised on a financial philosophy so insane and so backwards that it is guaranteed to fail. Ironically, this financial philosophy that fails without fail is called security.

Security. Just want to be secure, right? It's called security. I know. Totally bizarre, isn't it? You want it so bad, you dream about it, you work hard for it, and the pursuit of it is the financial death of you and your dreams. Think about it.

To achieve security is to have no debt while accumulating piles of money in accounts like 401Ks and IRAs and annuities and stocks and bonds and mutual funds. I mean, this security thing is all about work, work, work, and save, save. It's an accumulation mindset that you've been taught as the mindset that will lead you to security. I have news for you. Security doesn't work. And here's why.

First, it doesn't work because you cannot retire on no debt. You can't retire on no debt. I mean, the revered and elusive status of no debt produces zero income. Your personal residence. Supposedly, your single-grade, investment in life, that's what the get rich slow gurus will tell you, they'll advise you to actually pay it off as soon as you can.

Get a 15-year mortgage, they'll say. So you struggle every month to pay it off. You take their advice and you struggle and then once you get a paid off, if you ever actually do, but let's say that you do, yes, it's paid off. But now what? It doesn't pay you a thing. What do you do now? You cannot experience any sort of security by just being debt-free.

Second, the piles of money that you've toiled over for years and years to accumulate, they haven't paid you a thing either. Nothing. Your 401K after all these years has paid you nothing. Your IRA has paid you nothing. Your stocks and mutual funds have paid you nothing. if they haven't shrunk or virtually evaporated altogether. Investments per the definition are supposed to pay you back.

They're supposed to pay you. But my grandma's like, I hope it doesn't get any smaller next month. You're paying them. They're supposed to pay you. Yet these investments that you were told to put your money in have yet to pay you a thing. So here's the deal. The financial philosophy that has been ingrained

in our psyche since as long as any of us can really remember is based on a philosophy called Someday. Someday. Someday you'll be secure. Someday you'll be financially free. Someday you'll get to retire. Someday you'll get to travel. Someday you'll get to do what you want to do when you want to do it. Someday, someday, someday. Want you to work, work, work, save, save during the most productive years of your life and someday you will get to enjoy it. The philosophy of someday should absolutely terrify you. It should terrify you because you never get to live when life is actually happening right now.

You know, from the beginning, you are told to continue working. You are told to live frugally. You are told to pay off debt. You are told to save and save some more. You are told to do all of these things while never benefiting from your piles of money or you're paid off anything. I mean, to ever experience a true benefit from any of you of your piles or your paid off debts, you must consume it.

You save it, then you consume it, and then it's gone. You have no idea how to make it work for you. You have no idea how to put it to work so that it creates your wealth for you. How to put it to work so that it outworks you at your job. You don't know how to invest. It's not your fault, though. not blaming you. I'm not mad at you.

It's not your fault. You were never taught how. You were never taught how to invest. You were told how to invest. And these gurus at the top of the iTunes charts are still telling you today. You were never taught how to invest. You were told how.

You were told to entrust your money with human resources at your job. Hopefully that clerk in the human resources department. One of the lowest paid positions in the entire company. You were told to entrust your money with that person. Hopefully they put it in the right fund for you. Or you're told to send your money to a financial planner with the hopes that they know how to invest. By the way, financial planners

are not financially educated. They are sales trained. And if you're a financial planner right now, it may hurt, you may disagree with me, but you know it's true. Financial planners are incentivized to sell you some of the worst performing investments available because those, those are, you're investments pay the biggest commissions. Even if they do know how to invest, even if the financial planners are financially educated, it is not in their best interest, it is not in the best interest of their own financial freedom

to invest your money the best way that they know how. Good investing on your part does not consist of you sending your money to somebody else every month. Good investing consists of getting somebody else to send their money to you every month. That's the difference. That's what we call a residual income mindset. That's the road to financial freedom.

You know, financial freedom, it's a concept thrown around pretty loosely. It's used in all sorts of contexts. But what is it actually? Well, financial freedom, it includes security. I'm not saying that's wrong. It includes security, but it far surpasses it. financial freedom is liberation.

I mean, if security is having no debt, then financial freedom is having a residual income each and every month that is automatic. That is the goal of investing. It is to produce enough residual income each and every month that gives you the freedom to truly be at choice, to do what you want, when you want,

with whom you want, where you want, and you're paid off personal residence, will never provide that for you. So who would you choose to be and what would you choose to do each and every day with your life if money were of no concern? If there was a residual income

coming in to your mailbox on, say, the first and the 15th, who would you choose to be and what would you choose to do each and every day with your life? So the first step in learning how to invest and move toward financial freedom is to stop the insanity, of the save, save, save to someday consume mindset.

Stop that. Drop the accumulation mindset. The second step is to begin putting every dollar that you make into something that produces and pays you each and every month. Adopt the residual income mindset. That is the road to financial freedom. And that's the road you've got to travel. Well, if you want financial freedom, of course. You don't have to do anything.

But that is how to invest, and that is how to retire early. Exchange security for freedom in your financial vocabulary, and that alone, that one small word exchange will start to transform how you think about your finances, how you think about your future. And if you transform your thoughts, your emotions will transform, of which will transform your actions. And that's the key. I mean, if you continue to do what you're doing,

what you've always done, what your parents did, what the get-rich-slow gurus are telling you to do, you're going to get correlate results. I mean, the best case scenario is you do achieve security under that get-rich-slow philosophy, but you'll be 60-something at best before you ever get to actually enjoy the benefits of it. No, thank you.

Not for me. By dropping the accumulation mindset and adopting the residual income mindset, You can accomplish in five years conservatively, five years conservatively, what 99% of the country is unable to do in 50 years. You can accomplish in five years conservatively what 99% of the country is unable to do in 50 years. And that 99% is not a statistic I just made up. I did not just pull that out of the air. I did not use that.

It's not hyperbole. I didn't use that. and I didn't exaggerate for effect. That is a government statistic. And what if I'm off by a year or two? What if it actually takes you seven years? Are you still not 30 or 40 something? Or if you're 50 right now,

isn't it good news that you can actually catch up by just shifting your mindset? But if you're 30 or 40 something, are you still not young enough to thoroughly enjoy the freedom that you created for yourself? And what if you make a few mistakes along the way? Is there not still plenty of time

to put the ship back on course? Of course, there is. What if you make a mistake in that get-rich slow plan? What if you make a mistake there? You likely won't even realize you made a mistake until you're 50 or 60 years old. And then what? You got to put that shit back on course

with the same philosophy and delay retirement until you're 80? No, you're going to have to adopt the residual income mindset anyway. Right? So think residual income and financial freedom will be yours and a fraction of the time the path your get-rich-slow gurus are promoting. They figured it out. Regardless of what they're preaching, they have the residual income mindset. They're not preaching it, but they have it.

They understand TV royalties. They understand book royalties. They understand real estate investing. They understand licensing. They get it. That's how they're going to retire early. By creating a residual income from the get-rich slow, work, work, work, save, save, accumulate, accumulate,

someday, someday, someday teachings. That's how they're creating their residual income by teaching you that and selling it to you. Doesn't that just chap your hide? It flat out pisses me off. But hey, we all get to pick our battles, right? For some reason, though, I don't feel like I picked this one.

I feel like it picked me. You see, this podcast, and everything it stands for, is a gift to all who are willing to receive. It's a gift intended to shift your mindset from security to freedom, to shift your being from consumer to producer, and to transform your life from imprisoned to liberated. It's about seizing the life that you have left

and living it to the absolute fullest, because once it's gone, it's gone. Adopt the residual income mindset and retire early with me. while we're still young enough to thoroughly enjoy it. God loves you, and so do I. I am Matt the do-over guy, and I will see you on the next episode of your do-over. Thank you for tuning in to your do-over,

where the ignored, underestimated, and unknown steps to producing results and making life work are revealed. And remember, knowledge is potential power. Take action on what you learned today. This is not your learn-over. It's your do-over. To view the resources referenced in today's show and to retrieve a complete show transcript, visit www.

www. The Doover Guy.com. Stay connected with Matt the Doover Guy Terrio on Twitter at the Doover Guy and on Facebook at www. Facebook.com slash doover guru. This podcast is a part of the C-Suite Radio Network. For more top business podcasts, visit c-sweetradio.com. on.