Epic Real Estate Investing - Passive Income…. Just Get Started…. | 939

Episode Date: February 25, 2020

Start working towards your dreams no matter what! Whether it is climbing Mount Kilimanjaro or buying your first rental property, just do it! Therefore, stay tuned as Mercedes, our turnkey girl is explaining how to overcome your fears and doubts and get the wheels turning! 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 possibly even retire sooner.

So, this show is created to share tips and advice and real life, real estate experiences so that you too can create passive income in your world. That said, if this is your first time, here. Glad you made it. If this is not your first time here, welcome back. Hey, so you're reaching out to us has prompted Matt and I to really step up our real estate teaching and to share a lot more of our tips and real estate techniques on YouTube so that you too can step up your real estate game. So whether you're a newbie investor or that experience investor that wants to dive into portfolio building, just to take your real estate to the next level, make sure you subscribe to our YouTube

channel for your real estate education. Go to epicurei.tv to get all the details on how we do real estate. And let's jump into the deal of the week, which went to the Connor family of Washington State. They picked up an awesome three-bedroom, one-bath, single-family residence in Little Rock, Arkansas. Now, this property sits on a one-acre piece of land. The house itself is 1438 square feet, and that doesn't count the livable basement. in the basement, obviously. It also has a two-car garage. It is centrally located, and this family residence was found in a super family-friendly

neighborhood that's predominantly owner-occupied. That property sold for $95,000. They are coming in with a 20% down payment, and they are reaping a whopping 8.4.4.4.4.2. to one cash on cash returns. So to the Connor family of Washington State, congratulations on your first investment property. And kudos to you. So let's jump into the show because I want you to take a few moments. Take about a minute or so and think. Think about when was the last time you put something off that you've been dreaming about and that you've dreamt about for a long time. But for whatever reason, you just haven't done it. Now, maybe you want to hike up Mount Kilimanjaro or maybe it's write a book

or backpack through Europe or maybe even start a side business. And every time you get to thinking about it, you get really, really excited, like your palms get sweat, and you just like, you lose yourself in the thought of, oh my God, I so want to do this. But then life happens and you say, I'll get to tomorrow. And before you know it, it's months later and you're still thinking about it because, of course, it's still sitting in the back of your mind because it's been sitting there for a long time. And still, you've done nothing. Listen, it's really important to keep the promises you make to yourself because it's directly

correlated with your confidence and how much you value yourself and potentially it could affect your family, your family's well-being, and quite possibly your financial future. And the reason I'm sharing this with you today is because I can't tell you how many times I connect with people at our events or even over the phone. I connect with you. And real estate is your dream? It's been your dream. It's been on your back burner for a long, long time.

And you're just waiting for tomorrow. And you just don't know where to get started. But I speak to these people. And weeks later, months later, years later, they've done nothing. So this particular episode is designed to help you take the first step to your first investment property or for those seasoned investors, the next step to add to your portfolio, or perhaps to take your single family residence in your name and put them into a real estate portfolio so that you can borrow against it and buy more property. Here it goes. First, understand your buying power. So what does that mean, Mercedes?

What does understand your buying power? Well, whatever level you are in life, you have a level of expenditures, you have a level of income at whatever level. Whether you make minimum wage, whether you're a W-2 employee, or whether you run your own business and make ends meet every month. You have a low threshold and a high threshold to anything in your world, whether it's paying your rent or paying your mortgage or buying a car. And that in itself helps you determine what is over budget or what is within your budget. So when I say understanding your buying power, I mean understand what you

can purchase to help you make money or understand what investment property or what investment you can dive into and know exactly what that figure is before you break the bank, so to speak. So when I talk about understanding your buying power, it's really understanding to the dime what you can afford to jump into, whether it's that backpacking to Europe trip that you want to dive into, or whether it's starting your own business or buying your first investment property, there's a threshold of what you can afford. And that translates to your buying power, specifically in real estate. So my first thing is to understand what that is.

and that process is super easy. It means you can qualify for a real estate investment property by pre-qualifying for a loan. Simple as that. You may only be able to buy a $60,000 property and you may think that you can't afford it. But the reality is, if you don't know what your buying power is, you have no idea. Same thing goes for a $250,000 home or a $5,000 home or a million dollar home. You still need to understand what your buying power is. And the easiest way to jump into that is to pre-qualify for a loan.

Now, again, whether that loan is for your first real estate investment property or whether that loan is to dive into your first small business. You need to understand to the dime what you can afford and what you cannot afford, where you see yourself being over leveraged. And again, easiest way to do it is to pre-qualify with a lender. Second, once you pre-qualify or not, because you may not qualify, speak to the banker and find out why. If you do qualify, understand exactly what you qualify for, whether it's a single family

residence or a dollar amount. No to the T. What is it going to cost you to borrow that money from the bank? And if you don't qualify, find out why you don't qualify. and more importantly, find out what you need to do to qualify. It could be pay off a couple of credit cards that are really no big deal. Could be to resolve a collection that has been sitting on your credit for years and you have no idea what it is. Or it could be just to save $100 more a month for three months.

You will be surprised how easy it is. to qualify for a loan so long as you have the right parameters set in place. Finally, just do it. Stop thinking about it and start doing something different. You know, the definition of insanity is doing the same thing over and over again and expecting a different result. So, stop Loll again. stop thinking about it and just take the first ever so small step towards that one dream that

you've been thinking of for the longest time. So whether it's panning out a timeline to climb Mount Kilimanjaro or whether it's figuring out when and how you're going to buy that first investment property that's going to produce passive income, just do it. Because let's face it, the worst possible scenario is doing nothing at all. Let me break it down even further, though. So let's just assume you decide that passive income is what you want to do. You go and qualify, you get a loan, and unbeknownst to you, you qualify for two rental properties, and you didn't even know it. You jump into your first property, and the whole experience is an utter fiasco. I mean, not only did you have to pre-qualify, because ladies and gentlemen,

pre-qualify foreign loan is a big pain in the asset. I mean, it's pay stubs, it's W-2s, It's submitting bank statements to the banks and applications and all the information that you need to send to the bank so that they can pre-qualify you. Sometimes it's a little bit of a nightmare. But here's the beauty of it. You do it once and then you never have to do it again. But back to the fiasco. So let's just say this turns out to be a horrendous disaster. You buy this investment property and the investment doesn't go as plan.

Let's assume you have the worst possible tenants. Tenants that call your property manager every month to complain about something going wrong, or let's just assume your tenants moved in and after three months they didn't pay rent and they left your property and it's just a hot mess. You know, the easiest thing to do with an investment property. if it's the worst possible scenario that could ever exist is you can sell it. Here's the beauty of that investment. If you buy an investment property that just doesn't work for you, you just sell it. What a concept.

You have full control over your first investment property or any investment property. and if anything, if it goes so bad that you have to sell this property because you're seeing that it's going to cost you so much money, you sell it and if you bought it right, at the very least, you will be made whole. And at the end of this whole ordeal, you would have gathered a lesson, a lesson on what? to do, what not to do, and you could say, I actually tried it. Now, let me tell you, that is the worst possible scenario. That situation that I just described, over my 15 years of investment has never, ever happened to me, not to say that there are not bad investments or bad situations that have happened to me. A couple weeks ago, I shared about a story about a tree calling on a tree falling on a carport of one of our properties that caused damage to the tenant's brand new car. So stuff does

happen. But let me just tell you, even in the worst possible scenario, there is a solution, but the more important thing, you gained a whole lot of experience. And more importantly, you did it. You did something different that potentially could be life-changing for you. And if this pans out correctly, look at what you could have gained. Let's just assume it was the worst possible scenario. You were able to say, I did it. it didn't work for me and now I need to find something new.

And guess what? That horrible, terrible scenario, I just paint it. It seldom happens. You hear about it all the time and it seldom happens. So start taking on challenges that are difficult for you. Start thinking outside the box. Do not lose focus on your dreams. on your goal, on what you're trying to accomplish in life.

If you lose focus or if you focus on the what if, you'll grow those negative thoughts and they'll start to control your future behaviors. So stop that. Let it go. If you choose to believe negative thoughts, then you'll slowly start to devalue yourself and devalue those dreams that could potentially be life. changing and you'll never get started. Those thoughts are so powerful. But there's one thing that will help you build confidence and break down that resistance. It's action. Take action. Just get started.

So if you plan to climb Mount Kilimanjaro or if you're planning to write a book or backpack through Europe for summer or start a side business or jump into your first investment property. Start. It doesn't matter if you feel like it won't work or it's not going to happen for you. It doesn't matter. That's not part of your vision. Just travel as far as you can see and when you get there, you'll see further. Of course, those are the words of Matt Terrio, but over time, I promise you, it will get easier and easier. And before you know it, that dream, whether it's climbing that mountain or building your own real estate portfolio can become a reality if you just get started. if you think outside the box and if you take that first step, even if it's a baby step. That's it for today.

If you need help or guidance, don't hesitate to reach out to me personally. You can email me at Mercedes at EpicRealestate.com or reach out to my cashflow savvy team at cashflow savvy.com. That's savvy with two Vs. and know that we are here to help you build your financial future. Because ladies and gentlemen, real estate is the final frontier where the average person has a legitimate chance to create massive wealth for themselves. Have an epic day. Is Wall Street failing to meet your expectations?

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Go to cashflow savvy.com to get this new idea that Wall Street doesn't want you to know about. Cashflow savvy.com. More control, less risk. Cashflow savvy.com. This podcast is a part of the C-suite radio network. For more top business podcasts, visit c-sweetradio.

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