Epic Real Estate Investing - How Wholesaling Real Estate is Robbing You of Your Financial Freedom | 844

Episode Date: November 22, 2019

Wholesaling and flipping are a constant battle. You’re always looking for the next deal, you don’t have a safety net, and your income is inconsistent. However, all of that can be solved with the buy and hold property strategy. It is the best exit strategy to get you to an early retirement faster than 99% of the population! Therefore, Matt shares 5 hot principles to execute this strategy. 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-A's.com.

Here's Matt. Wholesailing, flipping, those two things are stealing your freedom. The two are a constant battle. You're on the hamster wheel, always looking for the next deal, and you miss out on all of real estate's best wealth creation attributes. Imagine you flipped 20 properties 20 years ago. And then compare that to you having bought 20 properties 20 years ago and still have them today. That's quite a different position you'd be in today, isn't it? You know, when it's said that, Real estate is the final frontier where the average person has a legitimate shot at creating real wealth. It's through holding that real estate, not flipping it. Sure, flipping is a much more exciting way to make money, and you can even get rich doing it.

But holding real estate, albeit boring, is a much faster way to get wealthy, of which that speed translates to excitement in my world. Let me give you five hot principles to ever. execute the buy and hold strategy. Hot principle number one. You got to know your numbers. What will it cost you to hold the property? Will the income from the property cover those expenses? Will there be something left over for you after all the expenses are paid?

You have to make sure that the property will pay you while you're holding on to it, not cost you. All right? Got to know your numbers. Principle two. Properties don't pay without good tenants. So take your time selecting them. Watch out for criminal records and low credit scores the normal. stuff, but most importantly, confirm their ability to pay rent and no evictions allowed. You need

good tenants. Principle number three, good management. I mean, this right here, this is as important or more important than the property itself. You know, to find good property managers, ask for referrals. Ask for referrals from the other investors in the area. That's a good starting point. And then once you found that manager, start them off with just one property and immediately look for a backup property manager right after you hired them. Because you want to diversify your property managers, as much as you want need to diversify your locations and your property types. Ultimately, you want to eliminate all single points of failure. You need good property managers, though. Principle number four, profit centers. You know, most people when investing in real estate, they look at the cash flow,

they look at the appreciation and they stop there. But wait, there's more, there's so much more. Depreciation. This is a deduction the IRS allows you to take each year for the wear and tear on your property. It's not going to show up specifically or directly in your bank account, but you'll see it in the form of a much smaller tax bill each year. Amort to say, Now, this is the paying down of the debt on your property. But remember, it's not you paying this down. It's your tenant doing it for you. So look at all for-profit centers when you're analyzing an investment.

Principle number five, growth. Using the profits from your properties to buy more properties that speeds up the growth of your wealth really rapidly. And you want to refinance, refinance, refinance until your cash flow covers all of your living expenses. And then you can start paying down that debt to preserve your cash flow. So you want to refi to grow, pay down to preserve. Got it? You know, one of our Epic Pro Academy members, Ryan Bagley, he's a perfect example of someone who really just went out and smashed the real estate game

with the buy and hold property strategy. You know, in just a few years, he retired early from the Air Force and is now relaxing on the sunny beach of Florida. And we recently got this message from him. He wrote, picked up our 26th rental today and crazy, as it seems, my first subject to deal. Thank you, Matt Mercedes, for showing me the light. Ryan, you're welcome. Buy and hold isn't the most exciting road to financial freedom, but it is the fastest.

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