Epic Real Estate Investing - How to Survive the Shifting Market | Episode 115

Episode Date: August 4, 2014

The market is shifting! Matt discussed this shift back on episode 113, but it appears it's happening much quicker than he expected. If the market is shifting, it's time to shift your strategy. On today's episode, Matt shares the specific daily activities to where you focus should be to survive this shift. ------------------------- Download Matt's free real estate investing course "How to Do Deals | No Money Required" at FreeRealEstateInvestingCourse.com or text FreeCourse to 55678 "Click" what interests you most:  Education Properties Income    Coaching Learn more about your ad choices. Visit megaphone.fm/adchoices

podcasting from Terrio Studios in Glendale, California. It's time for Epic Real Estate Investing with Matt Terio. Welcome. Welcome to another episode of Epic Real Estate Investing. If this is your first time listening to the show, welcome. Glad that you're here. This is the place where I show people how to escape the rat race by investing in real estate. And if I were to do it all over again, I'd do it exactly the same way.

And I do it exactly the same way whether I had money and credit to work with. or not because while I was finding my way, I stumbled upon 12 different strategies of investing in real estate with little to no money. And in hindsight, being forced to invest with little to no money or credit, what that did, I think it has made me a better investor. And I want to make you a better investor as well. That's why I'm here. So I put the first two strategies, the two of which I believe are the easiest and fastest strategies to a paycheck. I've put them into a free course just for you. And you can access that free course at free real estate investing course.com. Or if you're listening in via your smartphone. I've got something for you, too. You can text free course to

55678. Free course. That's all one word. Text that to 55678 and you'll get the course right there on your phone. And let's see. Speaking of that free course, I've just completed filming 10 brand new videos, an updated version of the course, not necessarily new material. Yeah, some new. Yeah, for sure. But new resources for sure. New resources and what I feel is more. complete material. And even though the course is greater in length, you know, with regard to video time, I managed to cut out a bunch of fat from it. I managed to trim a bunch of that out because I just really believe this, the way I've done it this way, it's going to help you do deals faster. It's going to help you, it's going to be a little easier too, I think. It's

going to be, it's going to make more sense for sure. There's just less, less stuff for you to figure out on your own, okay? And also, as this market, you know, it's making this shift, really wanted to drive home and zero in on what you're going to need to do to thrive in this shifting market. All righty? So anyway, I'm done recording it now. And it's a now it's in post-production with my editors. And they're making it all pretty and they're making it awesome for me.

So I'm hoping to, I don't know, be less than 10 days away from it being live for you. And also I'm hoping to make the transition seamless for you as well so that you don't have to go and opt in again if you have, you know, if you've, you know, if you've, you've, already signed up for the course. We've got, I think, gosh, I think 12, 13, 14,000 people there that have gone through the course. And so I don't want to cause you that inconvenience. I'm working with my tech team on that part. But either way, go to free real estate investing course.com.

You can do that right now. Sign up for the current version. And then I'll make sure that you get notified first of the new courses release and how to access it. Okay, at free real estate investing course.com. All righty. So maybe you've noticed, I don't know, maybe you haven't. I've been pretty much been running at half speed this month, I guess, within the last 30 days or so with regard to the podcast schedule. I did manage to take some time off.

It was long overdue. Hopefully you guys were able to enjoy some of the summer as well. I know it's still very hot here. Summer is still going on, but it is time for me to get back to work. So during that time, you know, I've also been working, even though it doesn't seem like I've been. I've been putting in some major work, one, the new version of the free course I just shared with you. to my hedge fund. I mentioned a little bit about that,

I think back on episode 113 or so, a couple episodes ago, of which is in the final stages and I'll be able to share those details with you probably September 1st. I don't know if that's on a Monday or not, but that's when it's supposed to be officially ready and then I can actually talk freely about it.

And then three, as I resumed this week, my full podcast release schedule. I'll be back up to speed again. I've added actually an additional episode, episode to the show. On Thursdays, there'll be an episode I'll release on Thursdays, and I'll release a short episode answering one of your questions, or one of your comments, one of your suggestions, I'll even deal with your complaints, whatever you want.

It's your opportunity to give me the third degree, and thus the Thursday's new episode will be called third degree Thursdays. So, Monday, we have the featured episode Thursdays. We have third degree Thursdays, and for Fridays, we'll be resuming, again, Financial Freedom Friday. So three episodes per week, Thursdays, and Fridays will be short and to the point, probably 10 minutes or less, and then you get your full feature on Monday. All righty. So there.

Also, let's see. What else? A couple announcements, actually quite a few because it's been a while since I got to talk to you. This past week, oh yeah, this past week we had to cancel our property tour in St. Louis as well as the grub and grow rich event that was attached to it. And the irony of it all, you know, as soon as we canceled it, everybody expressed their desire. their interest and their plans for attending. So that kind of puts us in a weird situation. Because, okay, so here's the deal.

These events, they take time to put together. And money has to be spent in advance to put them together. And I'm putting them together because you are asking for them. So I'm doing it for you. So we're going to go ahead. We're going to try again. But here's what I'm going to request of you this time. And I guess I just wasn't clear about it.

I didn't think it was that big of a deal. but my team has letting me know it's a really big deal. So I'm relaying this information. This time, I want you to sign up and reserve your spot as soon as possible. As soon as you know you want to go, sign up. You know, waiting until the last minute or even the week of, that's not a good strategy for us. Rochelle, who coordinates these events for us,

she needs to know. She needs a head count. At least one within, you know, the ballpark of like two weeks out. You know, the last event we had in Los Angeles, in Glendale specifically, you know, one week out, we had a count of 14 people, which was cool. But within the last week, we got 16 more, and actually 32 people showed up. And that makes Rochelle have to work much harder than necessary.

So do me a favor. If you want to go, please know that we'd absolutely love to have you. We'd love to meet you. We love doing these events. Just sign up and register as soon as you know that you're going to attend. Okay? So the next Grub and Grow Rich events, actually have two of them on the schedule, September 10th, in Long Beach, California, and October 17th in Atlanta, Georgia.

September 10th in Long Beach, California, October 17th in Atlanta, Georgia. And you can go to Grub and Grow Rich.com to reserve your seat there. All righty, so check your calendars. If you want to go, do us a big favor and just go sign up right now. You know, we get to spend the evening together. I'll answer all of your questions. I'll give you a presentation on cash flow and we'll discuss real estate, anything that you want. and then dinner will be served

and the drinks will be available and we'll just have a good time. But if you want to go, I'd love for you to go, just let us know as soon as possible. Cool? All right, so let's get on with some real estate conversation. What do you say?

All right? So, you know, since the market is shifting back to more of this traditional market, meaning that the REOs are getting a little tougher to find at bargain prices, the inventory over at HUD is diminishing, and your online aggregators, like your auction.com, what have you,

you know, they're watching their inventory levels, you know, fall rather rapidly as well. And in most markets, not all, but most. And I cover this in great detail two episodes back, episode number 113. And if you miss that one, I highly recommend you go back and listen to that one. I believe, you know, we're shifting from a sterile and analytical environment to more of a real-life people environment. You actually have to deal with people. You've always had to deal with people. But just because of the nature or the fallout from our financial crisis,

in 2007, 2008. There are a lot more opportunities available online, but that's disappearing. So to survive in the immediate future and beyond, investors are going to need to get back to the basics

and become a marketing and sales-driven organization. You've got to become investors again. What real estate investors do. You know, they generate leads. They go and set appointments with those leads. They give a presentation to those leads.

They write an offer to those leads, and then they've got to go and close the deal. That's the way it's always been done and it's getting right back to that. and, you know, I've, this is kind of my prediction based off of what I've experienced and what my associates have experienced. But I've even noticed some more evidence since recording episode 113. You see, over on the website, my website, Epicrealestate.com, if you go and you click on the coaching tab. There's a little coaching tab in the navigation.

You'll see a menu. And it's just kind of a menu, I guess, of my coaching services. And I put this up quite a while ago. And, you know, I get a new coaching client once, I don't know, maybe twice a month, directly from this page and that people just go there, they sign up without ever speaking to us first. They just sign up and say, I want to be coached. So that's my one or two a month.

That's about what it's been. And, you know, there's a number of options there on how you can work with me. And one of those options is called a quick fix. And what it is, it's just a one, it's just a single private 30-minute phone call, one-on-one phone call with me, and we get to work through whatever challenges you make. have. And I've never promoted this. I just threw it up there in the menu. I've never discussed it anywhere. I mean, this is the first time that I've ever shared it here on the podcast. You know, and when I did it, it seemed like it was a good idea when I put it up there. But

after six months or so of it being there, nobody has ever purchased one of those one-off calls. With the exception of the last two weeks, I've sold five, five of these calls. And that had me scratching my head like, what's up? And after I've talked to them, you know, of those five, four of them had the exact same challenge. They all complained about how their direct mail hasn't been working as of late as, like it has in the past. And I found this very interesting, because it kind of correlates to what we were talking about a couple weeks ago on episode 113. So I called one of my mentors. He's actually the leader, I guess the creator of my mastermind group, and I just wanted to kind of gather his thoughts.

And he shared with me that many of the members of our mastermind group, they're all experiencing very much the same thing. And it's because of exactly what I discussed in detail back on episode 113. You know, that strategy of just searching for deals on the internet and writing massive amounts of offers is working less and less. It's becoming less and less effective by the day. So many of the big investors are starting to market directly to private sellers, something that they've never done before.

They've never had to. And that has actually been the consensus from these one-off coaching calls that I've been having. That their leads that they're speaking to, those of the motivated sellers that they're calling back or they're getting their calls from their marketing are stating that they're getting more mail than they ever have from investors before. More people trying to buy their property. Postcards and letters and all kinds of creative things are coming through the mail. And so I was thinking, you know, I was thinking last time that we were like six months away from the shift making a real impact. But it appears it may happen sooner, may be happening right now. Now, this may be discouraging news for you.

And I would understand that perspective. But to me, and I think it should be for you as well, I look at it as very encouraging. And here's why. You see, the last several years real estate has attracted. a lot of different types of investors, meaning non-real estate investors, just investors, people with money, and were looking for places to put it

because, you know, obviously your ING bank account is not offering the greatest return these days. So they're looking for other vehicles, other businesses, other sources, whatever, other types of assets to invest in. And so a lot of those types of investors, a lot of that money came into the real estate market. And it had seemed easy to them when they did it.

And it seemed easy for quiet. It has seemed easy for quite a while. And they've been capitalizing on the market, these market conditions, for several years now. And specifically, you know, the large amount of properties available via the Internet and through the banks. Now, what's going on now is they're having to become real estate investors. And they're having to market and sell like a real real estate investor like we all are doing, like we've all been doing before they ever got here. And where I'm encouraged is that they're not going to last.

They're not. They're going to give it a shot. They're probably going to go full steam ahead. head and they're not going to last. There's no way they'll be willing to put in the effort for an extended period of time. The returns in exchange for the effort required is just going to be too small for them. So if you're experiencing the same thing with your mail, you know, your mail isn't working as well as it used to. Hang in there, okay? Hang in there, I promise. Don't quit. And as I've said from day one on this podcast, consistent and persistent action always wins.

You are virtually guaranteed success as long as you are consistent with the right activities and you are persistent with those activities. And that couldn't be any more true than right now. You know, your competition, these big investors, and even the smaller investors that have just kind of come into the market and just learned how to do this, they're going to get bored. They're going to get bored with the lack of results. They're going to get discouraged with the marketing and they're going to quit. They'll either quit or what they're going to do is they're going to start buying from other

real estate investors. from wholesalers, you know, investors whose companies are set up for marketing and sales. And I know this to be true because, you know, over the last couple of months, I've had three different large organizations, large funds, come through our cash flow savvy portal, trying to buy everything that we have. They've made offers on my personal portfolio. And I haven't talked to them, but Fernando has. he's the one who feels those leads when they come through.

And he's got standing offers for our entire inventory, for our personal inventory, for our cash flow savvy inventory, and a couple of the investment partnerships that we have in their inventory as well. I could liquidate tomorrow if I wanted to because they don't want to go out and do the work. They'd rather just buy them in large chunks from people that already own the properties. But I don't want to. I don't want to liquidate. I'm a buy and hold investor.

I like my cash flow. So anyway, this is a great time to be a real estate investor. There may be a little bit more competition than usual at the moment. And if that's what you're experiencing, just hang in there. Those that do are going to come out at the other end doing very, very well for themselves because those that do hang in there will eventually find less competition in the marketplace than they ever have because people will start to quit. I don't have a crystal ball, not by any means.

But here's why I'm so sure is I do understand human nature. And most humans, most quit when the going gets tough. Say things like, this doesn't work. There's no use. It's a scam. The market is terrible. No one's opening their letters anymore. This direct mail thing is everything's on the internet.

Let's go back there. They're going to make all kinds of excuses. and I've witnessed this in every business that I've ever been in. I witnessed this in a music business. I witnessed this in multi-level marketing, a couple multi-level marketing companies. You know, when the going gets tough, people quit. I witnessed this in my time as a real estate agent. Went through a couple market shifts as an agent.

People got discouraged, and then they started teaming up. They started becoming people's assistants, and they flat out started quitting. And now I've experienced this twice as a real estate investor. It's just human nature. When the going gets tough, boy, people quit. Human beings quit. So hang in there. All right?

And I imagine there are many of you actually that have no idea what I'm even talking about. I know there's some of you too as well because, you know, business, it's booming for you and because I know it is for us as well. I mean, I've noticed we've had to move some pieces around and we've had to alter some of our systems and our approaches, but we're doing very well for ourselves still. And I know there's a lot of you out there. They're doing very well for yourselves as well. So if that's your situation, it's the same advice.

Whether things aren't going good or things are going great for you right now, I give you the same advice. Keep grinding. Don't lift your head up, all right? Don't lay off the gas. Don't let up. This is the time to buckle down and drive forward with tenacity. Okay?

And this is really the primary reason that I'm revamping this free course. So you'll know exactly what you should be doing with your time, day in and day out, so you can pull through and come out on the other end victorious. Just stick to the basics. And this is what I mean by the basics. Let's just break it down to make it really simple. The amount of deals you do will correlate directly to the amount of offers that you get accepted. You got that?

The number of deals that you do are going to be in direct proportion to the number of offers that you get accepted. Now the number of offers you get accepted, going to be in direct proportion to the number of offers that you write. Got it? Now the number of offers you write Are going to be in direct proportion To the number of appointments that you set The appointments that you set with motivated sellers

Now the number of appointments that you set with motivated sellers Will be in direct proportion To the number of leads that you talk to And the number of leads that you talk to Will be in direct proportion To the number of leads that you generate And the number of leads you generate Will be in direct proportion to the amount of marketing

That you do The amount of consistent and persistent marketing that you do your letters or any type of letter, your postcards, your roadside signs, internet classified ads, going to your ARIA meetings, staying in touch with all of your contacts, your network, your database.

Just plain and simple marketing. You know how to do it all. Now you just have to do it consistently and you've got to do it and not give up. You got to do the right activities. You've got to do it consistently and you've got to do it long enough. So what is there to do?

let's make this really simple. Again, let's break it down even more. Place your solitary focus on marketing, on generating leads. You should spend at least one hour a day, at least one, two, if you're just totally ambitious. If you do this two hours a day,

you wouldn't have anything to worry about. But spend at least one hour a day on one task that will generate leads. That should be the first thing you do every day. Okay, I need to generate leads, what I'm going to do for one hour? And focus on that one hour and don't let anything interrupt you during that hour.

Then when your phone starts to ring, pick it up. Or if you get a call via voicemail, call them back. Don't hesitate. Act quick, okay? Remember, where we moved out of this market where the big is no longer going to beat up on the small.

It's the fast that's going to beat up on the slow. So pick it up, pick up your phone, get back to your voicemails, okay? And when you get them on the phone, now it's time to sort, determine whether it's a suspect or a prospect. Right? If it's a prospect, set an appointment. Don't hesitate.

Set an appointment and get it. get over there. Within 24 hours of that appointment, if you can do it on the spot, great. But within 24 hours of that appointment, write an offer. That's where your focus should be. Those are your consistent and persistent actions that are going to pull you through. Generate leads, talk to the leads, and submit offers. And sit, generate leads, talk to the leads, submit offers.

Why do I say talk to the leads? Because a lot of people generate leads and never call them back. Don't be that person, okay? You spend a lot of money, a lot of time, a lot of effort. You listen to a lot of podcasts. You've bought a lot of courses. You've been to a lot of seminars on how to generate leads. Make sure you actually talk to them.

Make sure you're getting your money's worth. Don't be a lead collector. Be a lead converter, okay? So generate leads. Talk to the leads and submit offers. Always submit an offer. If you don't submit offers, you're not going to get an offer accepted. In fact, make it a goal to submit at least one offer a day.

Okay? That's your goal. Make a goal to submit one offer a day, at least one offer. I mean, how many deals would you do within a year if you submitted 365 offers? Imagine that. Many of you've done a dozen deals already, and you've yet to write even 100 offers. Imagine how many you'd do if you wrote 365 offers. And some of you are complaining you've yet to do a deal, and you've yet to write an offer.

and you wonder why you're not doing deals. You got to write offers. Make that your goal. Each and every day, I got to write an offer today. The amount of deals you do will be in direct proportion to the number of offers that you write. So if you want to do more deals, write more offers. It is really that simple. And it doesn't even have to be that difficult either.

So make it a goal when you wake up each morning or ask yourself this question each morning, who is going to receive an offer from me today? That's what I want you to ask. They want you to ask yourself. Put it there in the bathroom. Put it tape it across your mirror, just over the doors. You're walking on your way out,

or whatever it may be. Who is going to receive an offer from me today? You know, my friend Christy here in Long Beach, talked about her before. In fact, she was a guest on the show a while back. You know, she's here in Southern California, probably the most competitive real estate market in the country. This is where a great deal,

I would almost say the majority of all that Wall Street hedge fund money came in, the people that were, the small little investors really got beat up the last few years because of them. But she still does a couple deals every single month. And she never really lost that consistency. And not just, I mean, a couple deals. I mean, to you out there in the Midwest, that might sound like not a big thing. But she does two California deals.

They're big deals every month. And you know why she does those big deals, those two deals every month? Because she's been known to write 100 offers. one week. And that's here in Southern California. I mean, most of you could do a couple deals a month writing a fraction of what Christy writes. You can get paid a whole lot more money doing a whole lot less work but where you live. So I know it can be done.

It can be done in any market. It can be done in the most competitive market and it can be done anywhere else after that. So all I'm saying is stick to the basics. Generate leads, write offers. Generate leads, write offers. Do it consistently and do it with persistent. meaning keep going. Don't stop. Right?

Meet me back here next Monday and we'll go over lead generation specifically. That's it for today. I'm Matt Terrio, Living the Dream. Stay with me and you will be too. 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 Terrio. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.