Epic Real Estate Investing - IT'S RIGGED: Why Schools Lie About Money (and it still works in 2025) | 1466

Episode Date: April 12, 2025

This episode reveals how the education system is designed to keep you financially illiterate and tied to a system that benefits the wealthy. Matt exposes the collusion between schools and banks, and explains the three types of income defined by the IRS—earned, portfolio, and passive income. The episode highlights the ultimate financial strategy: investing in income-producing real estate, which provides steady, reliable, and tax-advantaged income. Matt shares actionable steps for rethinking your income and starting a real estate investment journey, ending with an exclusive offer to join a real estate workshop in Las Vegas. If you'd like to join us in Vegas, you'll find this helpful: https://docs.google.com/document/d/1cDeSFadMA7q-qn1dPH7iAlJ5oLMiLwiU_-0Cm_1i5Ts/edit?tab=t.0 Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Hey, strap in. It's time for the epic real estate investing show. We'll be your guides as we navigate the housing market, the landscape of creative financing strategies, and everything you need to swap that office chair for a beach chair. If you're looking for some one-on-one help, meet us at rei-aise.com. Let's go, let's go, let's go, let's go, let's go, let's go.

Let's go. Your school had a deal with the banks. You just did know it. You see, they taught us to stay in one lane while millionaires built a freeway. They didn't forget to teach you about money. They left it out on purpose. I'm going to show you why this isn't an accident. It's by design.

More importantly, I'm going to reveal the one strategy that even the O for wealthy can't control or monopolize. But first, let me show you just how deep this deception goes. We'll go all the way back to the early 1900s, talking about the Rockefellers, the Carnegie's, and other industrial titans, they had a problem. They needed workers for their factories, but not just any workers. They needed people who would show up on time, follow instructions without questioning,

sit quietly for hours, and accept a fixed salary. Sound familiar? It should, because these are exactly the skills your school focused on teaching you. But here's what most people miss. This system isn't just about creating workers.

It's about controlling how you think about money itself. And once you understand how they do it, you'll never look at your paycheck the same way again. Today's schools aren't just hiding financial education. They're actively misdirecting you. Think about it. You learn algebra, but not how to read a profit and loss statement. You learn history, but not how the tax code was written to reward investors. And you learn chemistry, but not the formula for building well. And it gets worse. Your school has partnerships that you don't know about, banks, paying to teach their financial literacy curriculum. Credit card companies setting up tables at college orientation and student loan

officers posing as financial advisors. And while they're teaching you to be a good employee, they're hiding the three different ways that IRS actually classifies income. This is crucial because how you earn your money matters more than how much you earn. The modern banking system has created the perfect trap, student loans to start your adult life in debt, credit cards with hidden fees, 30-year mortgages that triple the bank's profits, investment advisors pushing high-fee mutual funds. It's all rigged. And now that you understand that, let me show you something the IRS doesn't want you thinking too much about. According to the federal tax code, there are three types of income.

The first one is earned income or active income. This is what schools prepare you for, trading time for money through a job. It's what keeps people poor for three reasons. One, it's limited by time. You've only got 24 hours in a day. it stops when you stop working, and most importantly, it's taxed at the highest rate. Think about that. The income that requires the most work gets taxed the most. The people working the hardest pay the highest percentage. Does that seem fair? No, but it makes

perfect sense when you understand the system. The second income, portfolio income. Now, this is slightly better. Income from buying and selling investments, like stocks, bonds, mutual funds, ETFs, you'll pay less in taxes, and it's not directly tied to your time, but there's still a problem. You need significant capital to make this work, and most people stuck in the earned income trap really just can't save enough to make this anything meaningful. Now, the third type of income is passive income. This is where everything changes, income that isn't dependent on your time or direct labor. There's no limit to how much you can make, and it's taxed at the lowest rate. This is what the rich focus on exclusively. I mean, it's no wonder, right? But,

As great as passive income sounds, not all passive income is created equal. So let's look at your options. The first one would be CDs and savings, the safe option that they teach in schools. But the problem here is you need a lot of time for this to pay off eventually. But with 1% interest and 3% inflation, even time isn't going to save you here. Because you're losing the real value of your money every year. I mean, I call these CDs certificates of disappointment. Now, the next type of passive income would be dividends.

Now, that's better. at three to five percent per year. But the problem here is you need a lot of money to begin with for this one to pay off. For example, you need about $500,000 invested to earn just $2,000 a month. Most people don't make enough to be able to save enough for this to work. And then the next type of passive income would be royalties. Now, this one is great. In receiving passive income from intellectual property, like songs and books and patent. But the problem here is you need the talent for this one to pay off. I mean, if you've got it, great, but most don't. And And if you do, it is the most competitive.

Then there's business income. And this sounds perfect to most people, being your own boss, unlimited earning potential, flexibility and control. But there's a big problem here too. Most businesses fail. In fact, nearly 80% are gone within five years. Why? Because it takes a unique blend of skills, a great idea, execution, timing, and yes, a little luck.

The reality is, most people don't have the experience, resources, or the risk tolerance for this to reliably pay off. But here's the good news. There's one exception that's worked consistently for millions of everyday people. You don't need special talent, massive upfront capital, or extraordinary luck. It provides steady, reliable, passive income. And unlike other businesses, the product never goes out of style. People will always need it. It's simple, scalable, predictable, and best of all, it leverages the tax code in your favor. It puts you on the right side of the rigged system. I mean, with all of this going for it,

it's no wonder it's produced more wealth for more people than anything else. And if you haven't figured it out yet, I'm talking about income producing real estate. It's where everything comes together because it's taxed at the lowest rate. It's supported by bank lending. It's encouraged by government incentives. It's accessible to anyone willing to learn. and it's not dependent on special talent or huge savings.

This is why real estate is the ultimate escape hatch from the rigged system. But here's the thing. Just knowing this information isn't enough. I spent years learning these lessons the hard way, making expensive mistakes until I finally crack the code. So I'm going to give you three quick and easy action steps that you can take to put you on the right track to break away from the rigged system. Number one, start tracking your income sources and categorize them by tax.

type, earned, portfolio, or passive. Most people are shocked to discover that 90% of their income is in the highest taxed category. This awareness alone will change how you view every financial decision that you make moving forward. Number two, look at your next paycheck's tax withholding. Notice how the system is designed to take their cut before you even get to see yours. Then compare this to how real estate investors get to deduct expenses first and pay taxes later. It's a completely different game. And the third thing is start studying your local real estate market like a detective. Drive around, take photos of vacant properties, and track prices. The system wants you focused on your 401k statement, but real wealth is being built right in your neighborhood. Now, if you're serious

about using this knowledge to create real change in your life, if you want to go deeper and take this further, I'm doing something pretty special this month in Las Vegas. There's a document below with all of the details, but here's the gist. I've learned that knowledge without action, it just leaves to frustration. That's why I'm taking a small group of committed people and giving them everything that they need to start building real wealth through real estate. So your flight to Vegas, I'm covering it, your hotel stay, that too, access to $150,000 in funding at zero percent interest. Yes. And my entire real estate playbook, that's all yours in three months of me personally holding your hand. Absolutely. Why am I doing this? Because I'm tired of just

exposing the system. I want to help people beat it. But here's the catch. I'm only accepting 10 people. Why? Because I want to work with people who are serious about using this knowledge to create real wealth. If you have a credit score of 680 or higher and you're ready to stop playing by their rules and start building real wealth playing by yours, check out the details linked in the doc, you know, below. But don't wait, these 10 spots, they're not going to last very long.

All right? I'll see you next time. Take care. And that wraps up the epic show. If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would. When their name comes to mind, please share it with them and ask them to click the subscribe button when they get here and I'll take great care of them. God loves you and so do I.

Health, peace, blessings, and success to you. I'm Matt Terrio. Living the dream. Yeah, yeah, we got the cash flow. You didn't know home for it. 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.