Epic Real Estate Investing - Money Rules – How to Get Your Money to Work for You… | 946

Episode Date: March 3, 2020

This Tuesday, Mercedes, the turnkey girl discusses the difference between old and new rules of money and how to spend it wisely in today’s modern world. Tune in and find out more! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terrio Media. So you want to be a real estate investor, but you don't want to do the work. If there were only a way where someone else could do it for you, now there is. Tune in here each and every Tuesday on the Epic Real Estate Investing show for Turnkey Tuesdays with your host, Mercedes-Torres. Hello and welcome, welcome to Turnkey Tuesdays brought to you by Epic Real Estate Investing. My name is Mercedes Torres, your turnkey girl, and I help busy professionals acquire passive income through real estate investing so they don't have to work so hard and maybe even retire sooner. So this show I created to share tips, advice, and real life, real estate experiences so that you two can create passive income in your world.

That said, if this is your first time here, So glad you made it. Make yourself at home. If this is not your first time here, welcome back. So the deal of the week this week, I have to say, really excited me. It was a duplex. A duplex in Little Rock, Arkansas, sold for 144,900. Now, this duplex was built in the 60s, but the epic team did an entire rehab to include a new HVAC, water heaters, a new roof, new plumbing, new electrical, longer the short of it. Although this property was built in the 60s, you are getting a brand new property just about. Except for the foundation, it was brand new. So it was fully rehabbed just this month in 2020. Now, each side has a two-bedroom, one bath per side. It rents for 600, $175 per month. So it's just under the 1% rule that we always kind of try to abide by.

It's our rule of thumb. But the taxes in Little Rock are substantially lower. So this property's ROI is right around a 9%, a healthy 9%. Hence the deal of the week. So congratulations to Javier and his wife, Karen. from Hawthorne, California, you guys picked up an epic deal. And this is her first deal. So you guys are simply going to crush it. So keep you eyes and ears out, my friend, for the deal of the week. All right. So let's dive right into this week's episode, will we? Here is the really awful truth about money.

Money. Money has its own set of rules. There's the definition of money. Then there's the rules of money. So the definition of money, as per our brother Webster, Webster dictionary says that the money is the current medium of exchange in form of coins or bank notes, what I would consider dollars. right? Then there's the rules of money. Translates to, of course, the exchange of this commodity known as money to gain something in return. So this can mean you go to the store, you use your matter of exchange, in this case your money, to buy something, or you invest your money into something like real estate or stocks. and what you ultimately get is money in return. At least that's the plan, right? Then to take it to the next level, there is one set of rules pertaining to money for the rich and another set of rules for the not so rich.

Let's just call it the average person, average people, if you will. The people who are most worried about money are those playing by the old set of rules. You know, the old rules, like you go to school, you get good grades, you get a good job, and you save. Now, if you want to feel more secure about your future, you really need to adapt a new set of rules pertaining to modern times. So let's discuss them, the old rules, and then we're going to discuss the new rules. Cool? So, old rule, save money. That is just an old rule.

It's what you've been told to do by your parents, your grandparents. It's just kind of what's almost innate to you because you've heard it your whole life. So after 1971, when the dollar was no longer backed by gold, the U.S. dollar was no longer money, but rather a currency. And as a consequence, savers became losers because the U.S. government was allowed to print money faster than it could be earned or saved. So when a banker raves about the power of compounding interests, what he or she fails to mention is, that the power of compounding inflation also exist, or in today's crisis, it's the power of compounding deflation. They don't tell you that. Saving money is an awesome way for the government to take your money.

Here's what I think should be the new rule. The new rule about how money should be handled in your world. Spend. Don't save. But what's important about spending and what's most important about spending is how to spend your money. The idea is not to just earn the money and save it. It's to earn it and spend it wisely. In other words, people who spend their money wisely,

will always be more prosperous than those who save their money. Some would argue that saving money is wise, but I beg to differ. Because if you save money, unless you put your money to work, what are you saving for? You've worked so hard to earn this dollar, this money. And if you save it,

what's the point unless you plan on doing something with it and hopefully it's to create a return. Now, some people save their money to buy a sports car or to buy the latest and greatest fad of whatever is the coolest thing. The reality is, if it's the fad or the coolest thing that you're saving, I promise you, in today's world, it's going to go out of style like in a year. that. Look at, for example, the phones that you buy. Like, literally, you can buy the latest and greatest, newest iPhone. You can even pre-order it. And you go and you buy the phone. And three to six months later, they're already announcing the next phone. Or what about a new car? Let's just assume you save, save to buy this new car. The car, yes, it'll probably get you to work. It is absolutely. a source of transportation. You're saving your money to buy something that's not going to produce

any income for you. Your money is not working for you. But did you think for one moment to buy that car, wouldn't it be an idea scenario if you bought something with the money that you saved that paid you a return to then make your car payment. Now that is putting your money to work. Let me explain a little bit further. If you save your money and the money doesn't work for you, it does you no good. But when I mean spend your money,

I mean spend your money and invest in something that's going to convert, your money into a return for you that is then going to serve you. Could be a stock, which is not my favorite because you have no control over it, or it could be real estate, which I'm a huge fan of, because you control just about every aspect of real estate. And this is what the rich understand. They understand that if they put their dollar to work to produce a return, that is their money working for them, that will in turn serve them to provide something that's going to increase their livelihood. The rich understand that in today's economy, you cannot become wealthy by doing what your grandparents did, by sticking your hard-earned dollars in the mattress,

or like my mom used to do, she would hide it in the cookie jar. Or even worse, the bank. The rich understand that if they put their money in the bank, it's going to do nothing for them. Well, the rich also know that the key to wealth is investing in cash flowing assets. And this is why I love rental properties because rent. Rentals, if you buy them right, have the potential to cash flow. And the cash flow from rentals, those returns are far greater than any other investment vehicle that I know of.

So today, you really need to focus on and learn how to spend your money on assets that retain their value and that provide some kind of passive or residual income. for you. And remember, do the math. Know your numbers. Numbers don't lie. You know, adjust for inflation or adjust for taxes or insurance or maintenance if you're buying a cash flowing property for passive income. But focus on assets that are historically stable. Well, no one has a crystal ball to calculate appreciation or inflation, history does repeat itself and there's a very good chance that both will go up. One will probably go up at a slower rate than the other. And this is why you want to focus on passive income through real estate, because if you buy right,

you will cash flow. Now, this is money working for you. take the cash full from this money and now go out and buy that fancy sports car if that's what works for you. Whatever it is, invest in something that's going to put your money to work and that's going to give you passive income. Money under the mattress or in my mom's cookie jar where it does nothing for you is not money well spent. But money well spent on an investment. But money well spent on an that brings you a return that potentially goes up in value is how this new rule of money will benefit you. That's it for today. And if you want help or direction on how to get your money

to work for you, don't hesitate to reach out. Go to cashflow savvy.com. Reach out to one of our cash flow savvy specialists. They will absolutely walk you through the best way to get your money to work for you through passive income. Have a great week. And until next week, have an epic cash flowing day. Your portfolio has seen better days. But this too shall pass. And the best for you is yet to come. Together, we'll get you there faster. We're cash flow savvy. And we'd like to share some information with you that will show you how you can take control of your financial future and accelerate its arrival. Go to cashflow savvy.com.

More building, less waiting. Cashflow savvy.com. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.