Epic Real Estate Investing - Money Tsunami 2023: The 7 Strategies to Flood Your Wallet with Rental Riches! | 1275

Episode Date: August 17, 2023

Brace yourselves for a cataclysmic episode of the Epic Real Estate Investing Podcast that’s all about CASH FLOW and creating wealth with REAL ESTATE INVESTING! It’s a double-whammy of wealth wisdom designed to shower you with success. Part one, "Money Tsunami 2023," unleashes 7 ground-shaking strategies for buying rental properties. Want to cash flow like a king? These tips and techniques will give your real estate investing strategy the tidal force it needs to flood your bank account in 2023! 🌊💰 Part two is no less riveting! "10 Ancient Money Rules from the Bible" dives into sacred financial secrets that the rich have guarded for centuries. Learn how these biblical principles can elevate your cash flow strategy and turn you into a real estate investing prophet! 📖💸 Whether you're a novice looking to wade into the waters of real estate or a seasoned investor ready to ride the cash flow tsunami, this episode is your lifeline to financial triumph. SUBSCRIBE NOW to the Epic Real Estate Investing Podcast and let your real estate investing and cash flow dreams set sail! 🏠🌊💲 IT'S MORE THAN EPIC – IT'S BIBLICAL! 🎙️🎉 P.S. Whenever you're ready to go deeper and further with your real estate investing, looking into my partner program to help you get your first deal might be the move... take the first step here for free 👉 https://epicearnwhileyoulearn.com/ Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terrio Media. Ladies and gentlemen, are you ready for the most thrilling, eye-popping, mind-blowing episode of the epic real estate investing podcast? Introducing the first segment that will have your wallets throbbing with excitement, the seven best strategies for buying rental properties that will cash flow in 2023. Do you want to crush this year with wealth beyond your wildest dreams? Do you want to be the conqueror of cash flow, the Sultan of Savings? Then don't touch that dial.

The strategies unleashed will be so hot, your bank account will need a fire extinguisher. And that's not all, folks. Get ready for a revelation so divine, it will leave you speechless. Ten ancient money rules from the Bible that the rich don't want you to know. Shrouted in mystery, hidden from the masses, these biblical secrets have been hoarded by the wealthy elite. Now the vault is being cracked open, experience the wisdom, the power, the cash flow of the ages. Are you ready to ascend the golden stairway to financial heaven? Don't miss

this episode. Oregon, you'll be crying all the way to the bank. Subscribe now and let Epic Real Estate Investing lead you to the promised land of profits. It's going to be epic. 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 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. Let's go. I purchased this property, this property, and this property all this year, and they all cash flow. Your real estate agent, your lender, they are praying that you don't make it to the end

of this video. Let me show you seven strategies that I've used this year to buy properties that do cash flow and how you can do it too, if you what. the properties, but it's not my first choice. My initial intent is to always hold long term for cash flow, appreciation, depreciation, and amortization. Primary goal up front, though, is cash flow. And that's when a property's monthly income exceeds its monthly expenses. Here's how I quickly calculate cash flow. When I find a property, let's say it rents for $2,000 a month, that's the income. And out of that, I deduct taxes, insurance, maintenance, vacancy, and property management. Those are my expenses. Those expenses, they typically work out to be about 35 to 45% of the income. So I use

40% as my quick and dirty math figure. What I'm left with is my net operating income, NOI. And with that, I have to pay the mortgage payment. And as long as the mortgage payment is lower than the net operating income, the property should cash flow. That's my quick test. And if it passes, ding, ding, ding, I make an offer. Now, this was rather easy for most people to do the last few years because the mortgage payment you could get from a bank was lower than the NOI. Now that interest rates have more than doubled, not so easy. In fact, in most places, it seems downright impossible right now. I mean, if Bank of America Chase or Wells Fargo type lending is the only tool in your toolbox, it pretty much is impossible. So for most people, they've got

two choices. They can one, suck it up, buy now, and cover the difference between the income and mortgage, which really isn't that bad of a deal if you can afford it. Here's what I mean. I mean, if rates continue to go up, then look at what a genius people will think you are because you got in when the rates were low. And if rates go down, you're still a genius because you bought when prices were low and now you can refinance into the lower rates too. Or they can just sit around and wait until rates come back down or rents go up. And who knows when those two planets will align again. Those are the two options that most people have, but not me. I've got seven other options still in my toolbox to cash flow properties despite what banks are doing.

And I'll give you a list if you stick around until the end. And I'll give you our internal operating procedures here at Epic on how to pull each one of them off. For these strategies to work, though, in addition to the cash flow calculation that I showed you, I make sure I check these boxes, these three boxes too. One, choose neighborhoods where property owners take pride in their properties, as this contributes to maintaining property value and attracting good tenants. And two, focus on acquiring reliable tenants with stable incomes, especially in a potentially leveling off economy.

Three, maintain cash reserves or establish connections with investors to be prepared for opportunities in the market. All right now, the strategy that I use this year and every year, really, is to buy at a price that will allow the property to cash flow. A low price. That's a no-brainer, right? But how do you buy at a price like that when real estate has gotten so expensive?

Well, it's like this. If you wanted to buy some Nike's at a discount, would you go to Bloomingdale's, Target, eBay, or a garage sale? A garage sale, most likely, right? All of those options are available in real estate, too. And like a garage sale, buying off-market allows you to negotiate directly with sellers, avoiding competition and avoiding bidding war.

It's how I bought every single one of these this year, because buying off market leads to lower purchase prices, increasing the potential for positive cash flow from day one. The second strategy that I've used this year is by borrowing money at an interest rate that allows for cash flow. Another no-dum moment, I know. So how do you do that? Well, I don't go to a bank for a loan. I shop elsewhere for mine. And I don't just get lower interest rates, but also longer repayment periods and reduced upfront costs. I'm talking about seller-firm.

finance. These types of deals, they allow me to secure properties with better cashful potential, even in a higher interest rate environment. I mean, have you checked out Zillow these days? Go over there and type in seller financing, and you'll see more of these deals right now than you've seen in years. Combine seller financing with buying off market and get the best of both worlds, cheap prices and cheap money. Now, the third strategy, the most recent one that I use to buy this one, is not to borrow any money at all. And I don't mean I used all cash. I mean, I left the existing loan in place and took over the payments. This strategy is called Subject 2.

And it's been relevant the last 70 years. I've been using it since I started like 17 years ago now, and it's becoming more and more relevant than ever today. By taking over the payments of an existing mortgage, I buy properties without needing new financing. It's like I buy the house and the money. It just comes along with it. Because we're coming out of a three-year stretch of historically low interest rates,

There's a bunch of two, three, and four percent loans out there just waiting to be taken over. No new loan, no new bank fees either. I save a ton on closing costs. Have you seen this? Housing starts and the U.S. unexpectedly jumped 21.7% month over month to a seasonally adjusted annualized rate of $1.631 million in May. That's the highest level in a year and way above forecasts of $1.4 million. This is why you don't want to wait for the perfect conditions, because it doesn't.

doesn't get any better than this. The demand for housing can no longer be ignored. And when demand is high, you want to control the supply. And builders, they know this. They are shifting into high gear to meet that demand. And they're offering investors massive incentives, such as lower interest rates, reduced down payments, and extended repayment periods. And this is the fourth strategy, by the way. I haven't used it, but I'm going to next month. This is builder financing. And these favorable terms contribute to a higher likelihood of positive cash flow, as the financing package is specifically designed to support the profitability of the property. If you want to join me for a road trip, I'm heading out with Mercedes to check them out. She's got an exclusive on these, by the way,

so go to cashflowsavvy.com and click on property tours in the website's navigation for the details, grab a ticket, and we'll meet you out there. The fifth proven strategy to buying cash flowing rental properties is another tried and true approach to better terms and flexibility. And I've used this in the majority of my deals to some degree. And I'm using it more than ever right now. And that's through private money. By partnering with private investors, I access funds without the constraints of traditional lenders.

And my private investors, they get to come along for the ride. My private money loans, they come with more favorable terms, such as lower interest rates, flexible repayment schedules, and reduced bureaucratic hurdles, which can easily translate to improved cash flow potential in a higher interest rate environment like we're in right now. Who do you know with a 401K? That's my go-to place by pumping some interest-free money into their retirement account while I build my real estate empire. The sixth strategy is one of my favorites because it presents one of the greater opportunities for having your cake and eating it too. I'm in the middle of this deal right now.

I'm talking about partnering, but specifically partnering with other investors who have complementary needs. For example, a doctor, a lawyer, a pharmaceutical sales rep or a dentist who earn high incomes as employees, they get killed in taxes. I'm always looking for these types of people because when I partner with someone like that, I give them all the depreciation on the property to make a huge dent in their tax liability so they can keep more of the money

that they're already earning. Great success. And most of the time, I take all of the cash flow because every $300 in my mailbox helps. And it's typically an insignificant number for them. And then we split the equity that's paid out when I sell or refinance the property. Now, those first six strategies,

they all have to do with lowering a property's expenses to reach a cash flow goal. The seventh one is all about increasing a property's revenue. And there are several ways to do this, such as renting a property out by the room, like for students or hospital staff. Now, I haven't done that one before. Or you can add amenities or leasing out unused portions of a property for parking or storage. And I've done those, so I know those work. But the most practical right now where I'm getting the most bang for my buck is by turning new rental properties into short-term rent.

rentals. And at the moment, I'm doing nothing more than just marketing them on a platform like Airbnb. I'm getting a three to one higher rental rate compared to my traditional long-term rentals, which turns just about any house into a viable income property. The income has been really good on the one that I picked up this year, but the expenses are pretty high when it comes to turnover. So with the advice I got from my good friend Jay, I registered my property with AIL Solutions, and they placed a three-month tenant for me. My new tenant's house had a fire, and they needed a place to stay while they rebuild.

Now, it's not quite three to one, but it's close enough, and I won't have the turnover expenses. The net income on this arrangement will be much better. And now that I think about it, I just refinance this property with private money from one of my student partners to increase my cash flow even more. If you'd like a list and a how-to of all the different creative strategies that I use to bring new team members up to speed, go to creative financing.us. It's free with direct access. You don't have to opt into it or anything like that. We'll be back with more right after this.

Boarding for flight 246 to Toronto is delayed 50 minutes. Ugh, what? Sounds like Ojo time. Play Ojo? Great idea. Feel the fun with all the latest slots in live casino games and with no wagering requirements. What you win is yours to keep groovy. Hey, I won!

Boarding will begin when passenger Fisher is done celebrating. 19 plus Ontario only. Please play responsibly. Concerned by your gambling or that if someone close, you call 1-86653310 or visit Comexonterio.ca. Materio investor, tell us where the deals are. Today's deal is in Indianapolis. And tell us what the numbers are. Attention investors, step right up to an unparalleled opportunity. Are you craving that mind-blowing thrill?

only a real estate maven like you would understand, feast your eyes on the most tantalizing real estate banquet right in the heart of Indianapolis. Nestled in the friendly arms of a neighborhood on the cusp of stardom, you'll find this three-bedroom, one bath, a masterpiece of investment magic. This place screams potential louder than a toddler with a new toy. Coming soon as this unassuming pad transforms into the bell of the real estate ball, the metamorphosis is underway, but don't wait for the final reveal. You'll want to snatch it up faster than Grandma's secret cookie recipe. Live the life in the future's hottest spot. The city is gearing up to toss in a brand new park and futuristic recreation center just a hop, skip, and a jump away.

Your future tenants will be doing backflips of joy, or at least cartwheels. For the busy professional investor, yes, you. Sip your morning brew as you revel in features and amenities tailored for long-term tenancy bliss. We're talking granite countertops for wine, spill-proofing, spacious rooms for the introverted roommate, and a backyard where pets can chase their dreams. About the surrounding area, it's awesome. From trendy cafes that fuel your tenants' avocado toast addiction

to lush parks, perfect for Sunday relaxation. It's an investor's playground wrapped in urban appeal. Oh, and let's not forget those revitalization plans that'll make your ROI sing. Don't be the one telling sob stories about the deal that got away. Seize the future. embrace the excitement and grab a free investor package from cashflow savvy.com today. Your portfolio will thank you later in heaps. P.S. You know that saying about striking when the iron is hot?

The iron is practically melting. Act now. Hope is not a financial strategy. Let's get back to work. Hey, listen up. If you're serious about getting rich, I mean really, really rich. You need to know the rules. What are they? Well, the secret to wealth is gratitude, says Tony Robbins. Don't make money your primary goal, says Ross Perrault. Damon John, he's got five rules to follow. Never stop learning. Be where your customers are. Leverage, build on your failures, and network, network, network.

All great modern day advice for getting rich. But is it enough? You know, if you want to go faster, it turns out that the Bible has got some ancient money rules for getting a rich, too. You know, I doled in years ago, and I'll tell you what I'll tell you what, learn what I applied and what worked. You're ready? Let's go. Hey, it's Mad at Epic. If you're new here, glad you found me. If not, great to see you again. Have you ever wondered why, despite all your efforts, you're just not getting rich in real estate? Yet, if so, you're not alone. I remember

that frustration not too long ago. I read everything I could find on the subject to turn things around, looking for all the new secrets, you know, some good ones, some bad. And it turns out all the good secrets, they ain't new. Just ain't nobody talk about them much. Maybe the rich don't want you to know them. I don't know, but, man, if you know something that could help someone, it just ain't cool to keep it to yourself. So I'll let you in on what I learned that made me rich. Turns out, it's not like cracking the Da Vinci Code or finding the lost city of Atlantis. No, it's more like playing a game of hide and seek in your own backyard. And guess where the rules are? Tucked away between Genesis and Revelation in a book that you could very well be using as a coaster.

Did you know the Bible mentions money over 2,000 times? I mean, that's more than it talks about faith or prayer. Crazy, right? So here we go. Ten ancient money rules from the Bible that the rich don't want you to know. First up, be a person of integrity. Proverbs 286 says, Better is a poor man who walks in his integrity than a rich man who is crooked in his ways.

And this isn't just about being nice. No, integrity means playing the long game, building trust, and making decisions that benefit everyone involved. relationships have been far more valuable to my business than the short-term benefits of each individual transaction. And I see people mess this one up daily. You know, just recently, in fact, a guy in Milwaukee approached us with a decent turnkey property and said he had more if we wanted them. And I've got more buyers than property, so it seemed like a good relationship. And so I sold his property to a nice lady on my buyer's list and some repairs that were supposed to be made didn't get done. He promised

to take care of them, but after we closed, he took that promise back. So sure, He might have made a few extra bucks on this particular deal, but he lost out on the long-term business partnership with us, which could have easily amounted to five to ten deals per month for him. Rule number two, seek wisdom. Proverbs 1616 tells us how much better it is to get wisdom than gold. And here's the thing. Financial success isn't just about money, Ross Perrault's advice from earlier.

Financial success is about making wise decisions. Real estate investing is more than buying properties. It's about understanding markets, anticipating. trends and taking calculated risks. That's wisdom and action. You know, most of my wise decisions are a result of my experiences from the bad decisions that I've made. I mean, if I had only paid more attention to other people's mistakes, rather than insisting that I make them all on my own, Proverbs 215 says, the plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty. The third lesson here is to plan ahead. Planning keeps you focused,

reduces risks and helps you stay on track towards your goals. You know, it took me years to learn that shooting from the hip is typically a disaster waiting to happen. As the saying goes, if you fail to plan, you plan to fail. The fourth rule, seek godly counsel. Proverbs 1522 tells us, plans fail for lack of counsel, but with many advisors, they succeed. You don't have to do this alone. Find mentors, join investment groups, network, the wisdom of others who've been where you are now can be invaluable. I mean, I can only imagine if I had learned this one single lesson in high school, I would have easily wiped out a decade of struggle and the painful lessons from the school of hard knock.

And that leads us to Proverbs 10-4, which makes this clear. Lazy hands make for poverty, but diligent hands bring wealth. Work diligently is the fifth lesson the Bible gives us. There's no shortcut to wealth. It takes consistent and persistent effort. It's about rolling up your sleeves and getting it done. That's one of our three core values here at the Bible. Epic, by the way, we believe in one, real estate works and getting it done, and three, that

everyone deserves a chance. We read those three beliefs aloud before our weekly meeting every week. No exceptions. Tithe is the sixth rule. Leviticus 2730 says, a tithe of everything from the land, whether grain from the soil or fruit from the trees, belongs to the Lord. Now, tithing isn't just about giving back to the church or your religious institution. It's about gratitude, as Tony Robbins said earlier.

You know, if you're a fan of Tony's and you study the Bible, you'll quickly recognize that the Bible is the original personal development book. Tony had a really good source document there. But tithing is also about recognizing you're a part of a larger community and contributing to its well-being. Rule 7. Practice generosity. Proverbs 11, 24 through 25 reminds us, one gives freely, yet grows all the richer.

generosity isn't about losing. It's about circulating your wealth and what goes around comes around, often in ways that you least expect. I experience this all the time. And frequently, the generosity comes back to me from someone who witnessed me, unbeknownst to me, being generous to someone else. Being generous, it's just flat out fun anyway. Now, here's a big one. Psalm 9012 says, teach us to number our days that we may gain a heart of wisdom. Value time over money is the eighth lesson. Time is the one thing you can't get back, so use it wisely. And this is a really good lesson to apply. I used to exchange my time for money as an employee.

Now I exchanged my money for time as a business owner and through multiple channels of leverage. The ninth rule. And most are surprised to learn that we're doing God's work over here at Epic. As Leviticus 2523 points out, The land must not be sold permanently because the land is mine, and you reside in my land as foreigners and strangers. This underscores the timeless value of land. Land is a tangible asset that doesn't wear out, it doesn't depreciate, and more isn't being made.

Invest in land is biblical advice. You a Luke Bryan fan, buy dirt, you know that song? Investing in land is God-breathed guidance that's been passed down the family tree since the beginning of time. So don't listen to me. God is telling you and has been telling you to invest in real estate. Buy dirt. Finally, Ecclesiastes 112 advises to invest in seven ventures, yes, in eight. You do not know what disaster may come upon the land.

Build multiple income streams is the tenth piece of biblical advice here. Don't put all your eggs in one basket. Diversify, the Bible says. And there are many, many more, and these aren't secrets, but their origin may be. So I'm giving credit to where it's due because it's given so much to me. 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.

And 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.