Epic Real Estate Investing - I’m 35, is it too late to start investing in real estate? | 767

Episode Date: September 6, 2019

Some people think they are too old for real estate investing, others think they are too young. Recently, Matt was asked if it’s too late to start investing in RE at the age of 35. Inspired by this question, he decided to share his reply with you in today’s episode. Tune in and find out Matt’s answer as well as why it is so universally applicable. 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. All right. So I just received an email late last night. And it was a very simple email. Just one little single question, one little sentence. And it read, I'm 35. Is it too late to start investing in real estate? And my answer just might surprise you. You know, I didn't have much to go on here. I know nothing about this person. But the very nature of the question suggests that this person believes that they are old. can certainly relate, and that a lot of time is actually needed to create wealth in real estate and or somehow that they may be missed time to the market. Maybe that's what they're thinking and this window is closing. Or maybe they're thinking it's downright closed and they just flat out miss the boat. I don't know. I don't have a whole lot to go with here. So I'm making some assumptions, but I've got some thoughts on it. And there's something that's really kind of funny about this because I work with a wide array of people inside of the REI ACE program. And And all from, you know, from different backgrounds, different goals, different experiences.

They've got different reasons for getting into real estate come from a wide variety of ages as well. And inside the RA's program, there are newly graduated kids right out of high school who have this fear that they're too young for anyone that's going to take them seriously. They don't feel like they're going to be taken seriously. And then as well, I have people that are right at or right into retirement. and they feel that they're too old to compete with all the young whippersnappers. And then I have this person right here at the age of 35 right in the middle thinking that they've somehow missed out on an opportunity. And I get it.

I mean, I've had similar thoughts at various points in my life about various things. But here's the thing. Everyone thinks this type of stuff. And there's quite a bit of this type of thinking around real estate as well. They think they're at a disadvantage because of their market. They think they're at a disadvantage because of their market. of their background or where they come from or they think they're at a disadvantage because of their natural talents or their lack of natural talents. They think they have to have certain gifts

to succeed in real estate. And they think they're at a disadvantage because of their age. Well, if everyone thinks that they're at a disadvantage, then nobody is at a disadvantage, right? And for every doubt that you have, someone that you would probably deem more successful than you, whether it's a little bit more successful or all great deal more successful than you, they've all had the same doubts. They've had the same doubts at least at one time. And for every person that can hear my voice, there is someone more successful than you that had it harder than you, have it right now.

So let's give all that up. Okay, let's start right there. Now let's talk about real estate and timing. And the specific question is, I'm 35 years old. Is it too late to start investing in real estate? And typically, my immediate response, my immediate answer for almost to all questions, real estate related, is it depends. Because there's so many variables inside of real estate that it depends on so much. But with this question, I'm going to do something I almost never do.

In fact, I can't remember the last time that I did it. And that's to give you an absolute universally applicable answer. And that answer is, hail. no, it's not too late. And the only caveat that I would have to that answer, if there was an exception, it would be around, let's just be clear about the definition of investing, right?

Because if you're speculating, trying to time the market so you can buy low and sell high and reap the benefits of those lows and highs that the market goes through, then I don't have an answer for you, right? I don't know what the future holds. I've been teasing about my crystal ball being in the shop. they've yet been able to fix it. I have no idea about that even the timing of something.

I mean, I imagine that the market, it only makes sense that it's going to have an adjustment, whether that's a big downturn or a slight one, or if it's going to continue to go up. I don't know. I know something's going to happen. But, and when it does happen, I don't know or whatever happens. I don't know when it's going to happen. And when you figure that out, please let me in on it. But if you're looking at real estate to truly be an investor, meaning you're aware of all

the profit centers that real estate provides, right? All the profit centers, real estate offers. I mean, you've got the access to leverage. You've got the cash flow. You've got the amortization. You got the depreciation. You got appreciation. Then you got all the regular tax deductions that go with just running a business because if you're a real estate investor, it classifies as a business. And if you're looking at all of those collectively, then no, it's not too late to get started investing in real estate. As when considering all of those, there are of all those different benefits, there are long-term ones, there are mid-term ones, and there are short-term benefits to investing that you could have access to right away.

You can start benefiting from right or now. So that's number one. If you're thinking investing under the correct definition of investing, no, it's not too late. It's actually never too late because of the short-term, mid-term, and long-term benefits of real estate. Second one, here's the second reason that it's not too late. The law of supply and demand is in your face. And not only is it in your favor, it's for certain. I mean, it's already here and it's not going to change in your lifetime, meaning there are enough people walking the planet right now to create

enough demand for the housing that isn't available yet. Like there's more demand already on the earth built in, but not enough supply. Right. So the life expectancy in the U.S. right now, It's at an all-time high at 78 years. If you've been watching the news lately, then you're probably going to say, but Matt, haven't you seen the last two years of life expectancy has dropped? We're not living longer anymore. Yes, I have noticed that. And over the last few years, it has dropped by 36 days.

So it makes for a good headline, but it's hardly news, and it doesn't impact your real estate decisions to the country. all right. But what about the birth rate you're thinking, right? That's on the decline. It's been on the decline for the last 10 years, haven't you read that in the news? Well, yes, I have. But I also know in 2007 and the earlier years there, but in 2007 specifically, there were more babies born in that year than any other year in history. And in 10 years from now, they're all going to be entering the market to buy and rent their houses. That's a big bubble of demand coming our way. way. And with regard to the decline in births, yes, it has declined a little bit. We're replacing every woman with two babies and with there being more women in our population than in men, and combining that with the life expectancy. The population is still growing. The demand is still growing, which translates that there has never been a better time to invest in real estate than right now. And I don't mean like today, I mean that we're blessed to live in the time that we live, right?

we've hit the jackpot with regard to when we were born. So that's number two. Supply and demand is in your favor as a real estate investor unless shelter somehow falls out of trend. If we all have this movement where we all want to live under the stars and we're going to weather the elements, then maybe have a point. But I don't see that happening. So third thing, if it were too late for us to get into real estate, this is maybe even the biggest one.

what would the alternative be? I said, yes, it's too late. Well, then what are you going to do, right? What investment opportunity is there available to the average person that enables the rate of wealth creation that real estate does? Nothing. That's what? There isn't anything available out there to the average person that can build wealth faster than real estate.

I mean, all I have to do is just mention the word leverage, although there's so much more. And I mentioned a bunch of those profit centers earlier. But just the use of leverage, that alone will multiply the wealth creation five times faster than anything else that's available to the average person. So just leverage alone. So the point being here is if you were too late to invest in real estate, what are your options for catching up, right? Aside from, say, lightning striking for you on that new startup, you got in on that IPO just at the right time or maybe cryptocurrency has another big run and you're well invested in that right now. Or maybe the lottery, right?

You know, as risky as your biggest critic of real estate may say that real estate is, because there's a lot of them out there, and they're starting to get a little bit louder because they're hearing this top of recession. So the critics are coming out, the cynics are coming out. And remember 2000, they don't be a fool. Don't make the same mistakes. All of that is coming, right? But they, it's not cryptocurrency.

It's not the IPO by chance or it's not the lottery. It's not anywhere close in that realm of risk. And I would even challenge them to say real estate, that part is not the risky part of why people lose. It's the people involved with the real estate is where the real risk lies. The real estate itself, very safe. So if you need to make up for lost time because you're thinking that it's too late to get in, you really have two options. You can work more and save more for the promise of someday. or you can access the power of leverage inside of real estate and all of its wealth creation

profit centers and live life to the fullest today. And if someday does actually arrive, because we know tomorrow's not promised, but if it does arrive, you will be all set for then as well. That's what real estate provides to all of us. So if you'd like some help setting up your own real estate investing business, head over to R-EI-Aase.com or if you'd like to leverage the business that we've already got in place and have us do all of the heavy lifting. Maybe you can check out cashflow savvy.com. All right. So it's never too late to be who you might have become. All right? So that's it for today. God bless to your

success. I'm Matt Terrio, living the dream. Take it. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. This podcast is a part of the C-suite. Radio Network. For more top business podcasts, visit c-sweetradio.com.