Epic Real Estate Investing - It's YOUR Biggest Opportunity! | 903

Episode Date: January 20, 2020

In today’s episode, we are going back to the basics! Matt Theriault explains why passive income and specifically real estate is your biggest opportunity to financial freedom and ultimately to wealth creation! Learn more about your ad choices. Visit megaphone.fm/adchoices

From coast to coast, epic investors are doing the most. It's time for another epic field report. So on the show, today I'm joined by Mr. Jaquim, Lewis, Jaquim. Welcome to the Epic Real Estate Investing show. Hey, Matt. Thanks for having you, man. You bet. You know, I invited you on for a very special reason.

First year, a member of our free real estate investing course, getting your first deal done and showing people how to do it with little to no money. And you posted about three weeks ago, you posted a couple checks in there from your very first first deal. So first of all, congratulations. Thank you. Thank you. You bet. And there's two checks here. There's a $12,000 check and a $4,000 check. Are these from the same deal? Are they from two different deals? From the same deal. Same deal. Okay. Perfect. So let's talk about it. How did you find your deal? So pretty much direct mail. I started a direct mail campaign. I learned everything off of your podcast. First off, I had a friend that put the bug in my ear. He had introduced me to real estate. He's an agent himself.

and he recommended that I got my license. Before I just jumped into that, you know, that's when I stumbled across your podcast and I gave it a listen, you know, and it fit my situation. I have very little money. My credit report is crappy.

You know, I work a 9 to 5. I was an average Joe. I still am, you know, I'm just, you know, back to what you had asked me. Really, I'm off a direct mail. I did a little bit of cold calling as well, but that just wasn't for me personally.

I was doing about 10 mailers a day. I skipped on Sundays, you know, but 10 letters a day, six days a week. It took, it did take about a month for me to receive my first, my first call off the letters. But once I received that first one, they started to come in abundance. Nice, nice. Yeah, it kind of works that way. Was it just like a handwritten letter? Did you type it out?

What type of letters were you sending? Basically, I wrote handwritten letters on colored postcards. Okay. And I sent them out that way. They were like, you know, the construction papers. like construction paper type postcard and I handwritten and sent them out that way. Got it. Was there, were they all the same color?

Did you have a special color? There are bright, vibrant colors, you know, colors that'll catch your eye, you know, so it was meant to stand out from whatever else they were receiving in their mailboxes, you know. And it actually turned out, it worked out, you know, with that first deal that I received, the lady told me she received several letters, you know, from legitimate companies. big wholesale, big fix and flip companies. And she chose my letter out of the other letters because she told me it stood out the most. There you go. It's a second commandment of direct mail getting noticed. So good job. Did you, you set a meeting with her? Was she local?

Yes. She was local. Ironically, Matt, it was a house that was in my same, like literally in my same neighborhood where I had grew up. And, you know, when I pulled the list, it was in the same So it was really ironic how it turned out to be a house two minutes up the street from where I live. So she was local. We set up an appointment. The day that she called me, you know, I went through, you know, the three questions. Come to find out she was receiving pre-foreclosure letters, court dates, and she was scared out of her mind. You know, she was the nicest lady.

She was an older Italian lady. She spoke broken English. So as far as communication, it was pretty tough, but I was able to set that appointment. the moment I walked in, you know, my palms are sweaty. You know, it was the moment that I pretty much prepared for. So it came time to apply it. And it went smooth and went very smooth. I felt comfortable.

She gave me a hug, a kiss on my cheek. She told me she reminded me of her grandson. You know, and it was just fate, I feel like, because I'm a grandma's blood. So my grandmother raised me. I never really had my parents in my life. She was everything. and I learned how to, you know, it was an instant connection. After it was all said and done, what did you find, what were you most surprised by?

I was most surprised by how quick, or not how quick, but how simple the process is. When I say simple, I mean like if you utilize and put to work what were taught, anybody could do it. It was surreal. You know, my attorney called me, hey, Mr. Lewis, your check's ready. That's when it felt real. inside of the your first deal course what are you going to find most impactful all the documents and how smooth my apologies for the background and how smooth uh you've got the information across to people it's very understandable you know everything that you taught throughout the course

i instantly applied you know you do have the the sheets you know you mark down your daily activities so how are you going to celebrate or how did you celebrate well my girlfriend and i um You know, I don't drink. I'm not a big drinker, but as far as I did celebrate with a nice bottle of champagne and a dinner. Took my family out to dinner. It felt great. Well, keep doing what you're doing. And if you need any help, you know how to reach out to us.

Thank you. I appreciate that. All right, bud. Well, thanks for taking time out of your busy schedule to meet with us and share your experience. Let's do this again soon. Yeah, certainly, Matt. I appreciate it. Thank you for having me on your show.

This. It's 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. at R-E-I-A-Ase.com. Here's Matt. I don't have the exact date, but I've been hosting the epic real estate investing show right here for 10 years now. We started early in 2010,

and I've got no plans for stopping, and I owe it all to you. Thank you for listening. Thank you for subscribing. Thank you for sharing this with your friends and family. That's what I love about you. And along the way,

what I've really probably enjoyed the most about this journey is getting to meet you in person. You know, some of you've been listening since the very beginning before we ever actually met. And at our last event, the one that we just had, you know, I met someone there who had just found us, had just found this show a week prior. And it's the absolute best. I mean, especially when when you go out there and you take the advice and you take the ideas that you get here at Epic and you go out into the field and you apply them. You know, just like Jaquim that you heard here at the top of the show and so many others before him, you know, when we meet in person and you ask me a question like,

Matt, I am so grateful for what you share and for what you do for us, what can I do for you? You know, the best thing you can do is exactly what Jaquim did. Get on the field. Take action. Don't let the time that you spend here go to waste. Take action on what you learn and then share with me your success. Really, nothing makes me happier. You know, we get pretty tactical on this show so I can see where someone like Jakeem and the others, they get the success that they get because we discuss strategy. We discuss the tools and the resources like the best ways to leverage technology

and finding great real estate deals and creating efficiencies inside you for your business, creating those systems, giving you the ability to invest in real estate profitably, whether that you're going to do it on a part-time basis or a full-time basis or maybe somewhere in between. You know, I'm constantly sharing the best places to find the money for your deals as well and the best exit strategies to maximize your return on investment, your ROI, moving you toward your own financial freedom in the fastest fashion possible. And, you know, over the last year, I started to, I wanted to incorporate Mercedes.

I introduced you to Mercedes on our turnkey Tuesdays, giving her her own day here on the show just to demonstrate how she's helped so many people. I mean, she's helped so many busy professionals that either didn't have the time or the desire to do all of that heavy lifting that can accompany, you know, taking down good deals and experiencing the profit from them. And so, you know, because we have two types of people that listen to the show. We've got those that, you know, they want to get their hands dirty. they want to go out and do it themselves.

They're much more hands-on. And then we have those that just, you know, they understand the value of real estate. They want real estate, but they just kind of want it done for them. And that's what Mercedes does. She does it for you. And, you know, one thing I haven't discussed in a while,

and that's why real estate is your access to everything you want in life. I've often said that this is a money show disguised as a real estate show. because we just live in a society of which money gives us access to everything that we want in life. That's just the world that we live in, and money is really important for that purpose. And, you know, so why real estate is access to everything you want in life and why it's the final frontier where the average person has a legitimate shot at creating real wealth for themselves. And, you know, this part, it's really, really important because if you get it wrong, you can easily get discouraged, you can get sick.

sidetracked, life can get in the way, you can chase fruitless, shiny objects, and, you know, your financial freedom will forever elude your grasp, it'll never be yours. But if you get it right, you'll stay focused, you'll stay focused on what's important to you. You'll maximize your time, you'll maximize your effort, and you'll be on a path of certainty where your financial freedom can be yours in a fraction of the time of how the majority of the population is going about it, like 10 times faster. And here's what I mean. You know, if you're like most Americans, you've been advised your entire life to pursue active income. You know, working 40-hour work weeks until you're elderly and you've got enough, hopefully you've got enough to save for retirement.

Unbeknownst to many, this path, it's outdated and it leads to almost certain failure. You know, according to the Department of Health and Human Services, 99% of today's 65-year-olds are unprepared to retire and will be financially dependent on church, family, or state. You know, if today's 65-year-olds, 54% of them are dependent. This is the breakdown of the stats. 54% of them are dependent. 36% are still working, at the age of 65, still working.

5% are deceased, and a mere 4% meet the government's definition of 5%. financially free. And the government defines your financial freedom as you are earning at least $36,000 per year from your investment efforts. That's hardly free in any part of today's world, $36,000 per year. But that's how the government defines it. So what went wrong for the active incomers? Meaning if this is what we're taught to do and this is the path that we're, we're, the path that

we're supposed to pursue, why is it failing almost all of them? Well, simply put, saving money for retirement, it takes too long, and it bears too much risk. And multiple forms of risk at that. Not just risk to your finances. I'm not talking about that exclusively. No, I'm also talking even more, what I think is a more significant risk. That's a significant risk to your time, meaning your lifespan. You know, not only was saving rendered a losing financial strategy back in 1971 when Richard Nixon removed the dollar from the gold standard. But people also, they just don't start savings soon enough. They miscalculate.

They choose the wrong investments. They encounter unforeseen expenses. They live longer than they thought. Or they just lack the discipline to stay the course for 40 straight years. And the reality is, this is the real reality why savings doesn't work, is most people just don't make enough to save. enough for a savings plan to produce the type of financial freedom that you want. That you, the type of financial freedom that you think about when you hear the term financial freedom.

You're like, hey, that sounds good. And if you want that, most people just don't make enough to save enough to create that. And by the slight chance that you do actually make it, because there's a small percentage, a very small percentage that actually do make it. And on the slight chance that you make it as well, and the savings plan, that pans out for you, it's going to take you 40 years to do it. And by then, the most active years of your life are behind you. Now, a mere 1% of 65-year-olds today are wealthy. One percent, they make it. They make it to the wealthy status. So let's look at what they have in common. I mean, if we want

something that someone else has got. If we do the same thing in the manner and the fashion that they did it, we've got a really good chance, if not an almost certainty of getting it ourselves. So what do the 1% do? I mean, that's going to be, to leave a serious clue for us, right? So the 1% secret to wealth is, drum roll, please, real estate. Yeah. And this is not an exaggeration of any kind. This 1%. It's an undeniable fact that wealth favors real estate investors. To guarantee your own success, you must get on the right side of this statistic.

Preferably sooner rather than later. You know, regardless at some point in your life, real estate must be a part of your financial plan. I mean, you just don't stand a chance unless it is. And that's not my opinion. I don't care what other people say and what they think. I'm just looking at the statistics. I'm looking at the data.

I'm looking at the facts. 1% make it. And 74% of that 1%. So 74% of the wealthy 65-year-olds either made or preserved their money in real estate. That's a clue. That's not a clue. That's a clue. But it's also evidence.

This is what works for more people than anything else. But, you know, Matt, the stock market, I can hear it already. The stock market has been doing really well for a while. It did really well for me even. What about that? Well, yeah, it has. You know, over the last 10 years, you'll get no argument from me there. But there's a big stock market lie.

The great stock market lie, I call it. You know, Wall Street, it leads many people to believe that stock. outperform the appreciation of real estate. Countless articles have been written on it. I've referenced one of those articles from the Wall Street Journal right here on the show a few times, which it's actually true, right? Factually, it's true.

That's what's factual. But what's actual? You know, what Wall Street fails to mention are the two game-changing facts, of real estate. First one is leverage. Leverage, that's the first one. And the second one are the three additional profit centers inside of real estate that don't

exist in the stock market. The three additional profit centers we've discussed here about the, around the ROI matrix. You know, when purchasing income property, this out works, most people put down 20%, right, and they borrow the other 80%. The power of leverage grows five times the appreciation. on that 20% down. And this type of leverage, it's unavailable to average people investing in stocks.

See, when they say that stocks outperform real estate, the appreciation of real estate, they fail to mention the leverage. That's if you just bought it outright paid cash for a property, and now you're comparing apples to apples. But this ability to access leverage for real estate that you can't. cannot do in stocks, increases the growth of your wealth by five, by five times just that right there. In fact, when you adjust with leverage, real estate crushes every other investment vehicle available to a regular person, to the average person. And when you add the three profit

centers from the ROI matrix, you've got amortization, depreciation, and cash flow, those other three, it completely annihilates them. The stock market doesn't stand to change. The other problem with the stock market is that it simply does not put any control in your hands. In fact, it removes the control from you. I mean, you can make educated guesses and watch the stocks rise and fall, but ultimately, the fluctuating isn't controlled by you. Rather, it is caused by completely random forces. I mean, I'm sure behind the scenes, if you had the scoop of, I mean, you could peek behind the curtain, they might not be random. But for all intents and purposes, for the average person, they're totally random.

I mean, for example, here's a great example. In 2014, a penny stock named Nestor saw shares rise 1,900%, 1,900% when people confused it with Google's acquisition of Nest. Real estate, on the other hand, it's not random. And it's rarely controlled by a large group of people who can't spell. It allows you to take matters into your own hands and ultimately achieve financial independence. Yeah, but real estate, it's risky, right? It's kind of sad because many people avoid real estate altogether due to a misguided fear of risk, not realizing that risk can be greatly mitigated with a proper education, training, and mentoring,

just a little bit of time invested in learning how it works. And that doesn't exist with the stock market because you've got zero control over them. People write off real estate education, training, and mentoring as too expensive without bothering to calculate the actual cost of ignorance. That's expensive. You know, Warren Buffett, one of the most successful investors in history, he advises to never invest in a business that you cannot understand. I think that's what really, if there was a third element to that big stock market lie,

taking that advice from one of the most successful real estate, or excuse me, one of the most successful investors in history, that gives it a really good case. A third point is why you probably should avoid the stock market. Because you don't understand those businesses. You don't understand what's going on with those businesses, what the hierarchy, is, what's going on behind the scenes, what the plans are for the future. But lucky for you, real estate is incredibly easy to understand. I mean, it's houses.

People live in them. And they fulfill a basic human need, shelter. Most importantly, this basic human need will never go away. You know, it has built in demand that is always growing. And the supply, the supply is limited. In direct contrast to the stock market, nearly everything about real estate investing sets you up for long-term success. And it's the supply thing, the supply and demand aspect of real estate. Just the basic law of economics that runs everything, even, I mean, everything outside of real estate and inside of real estate.

So what I'm talking about here is the supply is fixed. They're not making any more land, right? The demand is growing. You know, each generation is a little bit bigger. bigger than the previous. It fluctuates a little bit, but it continues to grow. Not to mention, people are living longer than they were a decade ago. And even longer than a decade before that and a decade before that.

So what that means is prices will continue to go up because the demand is growing and the supply is fixed. There's enough demand right now already walking the earth to assure that for you. if there's ever a for sure thing when it came to investing, this is as close as you're ever going to get. I mean, sure, values are going to go up, values are going to go down, and in between, it's going to happen in between each peak of the market. But the market will continue to peak. Each peak is going to be higher than the previous.

And besides, the appreciation that we're talking about, this peak, this up and down, that's just the frosting on the cake. It's not the cake of real estate. That's just the part that most inexperienced, uneducated real estate investors, most laymen's, most average people will look at when it comes to real estate is the appreciation. You know how I know this? Because the most common question about real estate or the most common question, you know, circulating in people's minds, is this a good time to get in?

When should I get out? They're trying to time the market. And the only thing that your timing is the appreciation. You see, it's the case. cash flow and tax benefits that are going to set you financially free, not the appreciation. It's the amortization in addition to the appreciation that's going to build your wealth. It's the cash flow and tax benefits that are going to set you financially free. It's the amortization and the appreciation.

The appreciation being the fourth component, like I said, that's the frosting. That's the last thing to consider. But it's the amortization and the appreciation that's going to build your wealth. So when things get a little rough, they can in real estate here and they're just like in anything. And if you ever ponder the idea of quitting to go out and search for something else, remember this. Remember what we talked about here.

And remember why you got started in real estate in the first place. And if you've yet to start, well, when now be a good time? Here, I'll give you three easy steps to get things rolling. First off, there's no such thing as a bad real estate investment. Understand that. there are just uneducated real estate investors. So step one, invest in yourself.

Invest in your education, invest in your training. Make you better, right? Make you an educated real estate investor. That's number one. Step two, move at the speed of instruction. What I mean by that is apply what you learn. When you learn it, don't wait to know everything before you get started. but don't wait to see the whole staircase before you take that first step.

Travel as far as you can see, and when you get there, you'll see further. Step three, ask for help when you get stuck. And then when you get the answer, resume. Get moving again. And just do that over and over and over again. Move at the speed of instruction. Ask for the help when you get stuck. You know, the people here at Epic that have the most success that we've noticed

are those first that are quick to implement what they learn. And second, they're quick to ask for help when they get stuck and they resume right back to implementation. You know, it's no more complicated than that. Jakeem said it right at the top of the show. He said, anyone can do this. And he's right, anyone can invest in real estate. But most people won't.

And there's your opportunity. That's the opportunity. anyone can do it, most people won't. And that's your opportunity. And if you'd like some help, you can catch us at one of our upcoming events or take a look over at R-E-I-Aase.com. Either way, don't let the idea of investing in real estate be that, just an idea. Make it real for you.

Make it real for you and your family. Your financial freedom is in serious jeopardy if you don't. All righty, that's it. for today. God loves you and so do I. God bless and to your success. And make sure that you subscribe to the show if you haven't done so already because the next 10 years are going to be epic. I'm Matt Terrio, living the dream. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. You didn't know home for us. This podcast is a part of the C-suite radio network. For more top

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