Epic Real Estate Investing - Passive Investing, Direct Mail and Hedge Funds | Episode 140

Episode Date: January 12, 2015

If you’re a long-time listener of the show, it’s likely you’ve heard Matt make predictions about upcoming changes in the investing landscape.  One of the first signs of this shift has been a noticeable reduction in the direct mail response rate across the country.  Today Matt discusses the reason that this is occurring, and the slight adjustment you can make to your marketing campaign to get the most bang for your buck.   Matt wraps up the episode by explaining his new hedge fund, including the challenges within his business that prompted him to start it.  Most importantly, he shares how you can avoid those challenges and thrive in today’s investing climate.  Enjoy!   ------- The free course is new and improved!  To access to the two fastest and easiest strategies to a paycheck in real estate, go to FreeRealEstateInvestingCourse.com or text “FreeCourse” to 55678. What interests you most? E ducation P roperties I ncome C oaching   Learn more about your ad choices. Visit megaphone.fm/adchoices

Broadcasting from Terrio Studios in Glendale, California. It's time for Epic Real Estate Investing with Matt Terrio. Yeah. Hello. Hello. And welcome. Welcome to Epic Real Estate Investing, the place where I show people how to escape the rat race using real estate.

And I'll show you how to do it on your own right here. Or I'll do it for you and show you how to. that works on a brand new podcast I launched just last week, turnkey real estate investing. As I'm thinking about, I'm probably a glutton for punishment taking on another episode to produce every week, but I think it's needed. And it's going to be for the greater good, I think. And here's what sparked the thought, actually. A couple of months ago, one of my turnkey real estate investing clients was here in the office

for a meeting. And he was talking about how much he liked this podcast. He was a big fan of the podcast. He's listened to it for a couple years now. But his eyes, he admitted, would kind of glaze over anytime, you know, I started talking about wholesaling or yellow letters or bandit signs, anything like that. I mean, he loves the motivation. He loves the financial education.

He loves real estate. But he runs his own full-time business and has no interest in sending out yellow letters or postcards and then answering the phone and talking to motivated sellers, negotiating offers, all that kind of stuff. I mean, he has no desire to do all of that. He doesn't really have the time either, but he still wants to invest in real estate. He still wants the benefit that real estate can provide. So that's why he's a great fit for our turnkey service at cash flow savvy.

And then about a week later, I don't know, coincidentally, I thought at the time, I heard the same thing from another cash flow savvy client. I guess my reticular activator had been sparked. So now all of a sudden I was looking for the evidence of, oh my goodness, do I really have two different audiences that listen to this podcast. I've got the one side, we've got the do it yourselfers, which are the people I interact with seemingly most of the time. I get via email and as my coaching clients.

And then I've got this other side that do it for meers. You know, I've got to do it for yourselfers and the do it for meers. And with just a little bit of surveying and research, you know, I just came to the conclusion that this new podcast, that's what's needed. So from this point forward, I'm going to divide as my. much as of what, you know, what I discuss here as possible into two categories. This show being the quote unquote hands on show and the new podcast being the quote unquote hands off show.

Now, there's going to be quite a bit of content that will serve both audiences. So there'll be some overlap. They're not going to be 100% different. But this show will just lean a little bit more towards getting out there in the street and getting it done yourself. And the other's going to lean a little bit more toward, you know, teach me and do it for me. I want to know what you're doing, but I really don't, you know, I want you to do it for me. And I'm not referring entirely to my cash flow savvy company either.

I'm referring to all turnkey type solutions in general. And that could be single family homes that cash flow, or it could be real estate investment trust, or it could be, you know, all the way on the other side of the spectrum of a real estate hedge fund that pays a preferred return, you know, what have you, just more of a passive approach. I mean, that's kind of what this is, I guess where I'm going. The Epic Real Estate Investing podcast is going to focus more on active investing. And the other turnkey real estate investing is going to focus more on a passive approach. And there will be a good amount, like I said, of overlapping gray area between the two.

Okay. So that's what's coming up. So if you're a busy person and you don't have the type of time that you want to dedicate to what we discuss mostly here, or maybe you don't really have the desire, which I understand, to do all of the work. that we discuss here, but you still want the result that investing in real estate provides maybe the new podcast turn key real estate investing. That might be a better use of your listening title.

It's going to be more of a focused subject towards your interest. But it's entirely up to you. Maybe you want to listen to both. And that's totally fine with me. You'll get no argument from me there. So just know that they're both available now for you depending on your needs and interests. And if you would, it would be of great help. and I would be very grateful if you went over to turnkey real estate investing and you subscribed,

rated, and reviewed that show. That really helps the visibility of the show, particularly when the show is new to iTunes. It gives it a big boost of which what that does is it really increases the visibility in iTunes. And it helps other people find it. So thank you in advance if you go over and actually do that. Now, let's see, lots of stuff to discuss today. I just got back from Arizona this weekend and had a couple of fantastic business meetings, of which I'll be able to share with you very shortly this Friday, hopefully.

So don't miss this week's episode of Financial Freedom Friday. It's probably one of the bigger moments of my, I don't know, I guess my real estate career that happened this weekend and I get to share that with you at the end of this week. And that's all I can say for now. So don't miss Friday's episode. And let's see, what else? on an entirely different note. You know, as I mentioned quite a few months back that I and my associates, members of my mastermind

group and fellow investors that I associate with, that we're noticing a shift in the market. And this has come up quite a few times. And, you know, it's more of what the content that we're discussing here lately has to do with that shift. And what it is, it's a shift of where we're moving from this sterile and analytical environment to one of a sales and marketing environment. See, if real estate investors, if they want to stay in business, we know we've had a really good run the last five or six years, but if they want to stay in business and continue to experience that type of profit

and that type of business, they're going to have to become more of a sales and marketing organization. We're going to have to get back to the basics. You're going to have to become actual real estate investors again. What real estate investors have done historically, that's what we're going to have to do. We've, and we've taken that to heart here in the office. I mean, even I've got a little lazy and was really comfortable with getting most of my

properties and my deals from my relationships and from realtors and from online resources and stuff like that, where it was kind of easy. It didn't have to work so hard. But now we kind of have to go back and got to put a little bit more effort forth because of this shifting market. So that's what we're doing here. Actually, we've been focused on that for about the last 90 days. and we're doing quite a bit of internal marketing right now.

And we're doing a lot of testing. And I also have the benefit of working with the 30 brand new coaching clients, the Inner Circle coaching clients that signed up in November and December. And I'll be working with them over the next 12 months, but I've learned so much already. I mean, I'm learning so much vicariously through their business as well. Because they're all, they're spread out all across the country. They're all in different markets.

They all have different resources. They all have different goals. And so I'm just learning. learning a lot collectively. I'm pulling from all of that information and there's one thing that I'm noticing right now. Pulling all of that information together and from my experience here in the office and working with David and who's my acquisition guy and then through my associates, we're all noticing and I'm noticing that the direct mail response rates are noticeably down in most areas. And I mean, we're still doing well with it. A lot of my associates, we're all doing

well, and I still have many students doing very well with their traditional direct mail protocol, and everyone's still generating a good quantity of leads through their direct mail efforts, but on the other hand, it's, you know, it's not what it used to be, okay? I have a good chunk of students that are a little disappointed with their direct mail results, and we've tried a couple things in here in the office where I was kind of like, hmm, that didn't quite work how I thought it was going to or how it had worked in the past. And so here's what's happening. I mean, certainly the time of the year, November, December is going to be a little bit slower in response.

So that, I think, has something to do with it. I think spring it's definitely going to pick up. But I think there's something even bigger happening. Because of this shift in the market, many more real estate investors are implementing direct mail campaigns in their business, possibly more than ever before. And, you know, kind of the go-to thing, what most people have experienced to be the low-hanging fruit of direct mail, are the absentee owners. The absentee owner right now are getting absent-ean.

absolutely bombarded with direct mail. Because I'm an absentee owner. I know this. I get these postcards all the time. I've got 240 units spread out all over the country, and I'm getting direct mail probably, I don't know, per property, maybe once or twice a week when it used to be once a month. So what was once a very viable list for most investors, it's not as much, not like it used to be.

Still works, still effective. By no means do I think this list is no longer worth. works. No, it absolutely does. We're still doing deals regularly off of this list. My students are still doing deals regularly off this list. And I really want to drive that home because I don't want you to say, oh, I'm going to stop doing absentee owners. That's not what I'm trying to get you to do. I just want you to kind of look at your business and I want to share with you what I'm observing. So, and I actually think this list response rate will eventually bounce back. And I think probably sooner rather than later, you just got to give it some time for those new to the direct

marketing campaign, the direct marketing game, you got to wait for them to get tired because they will. I mean, they're going to get discouraged. I mean, even my students, I mean, they've sent out one or two mailings and they're getting discouraged. They're like, hang in there, hang in there, because consistency is what always wins in marketing. This is great book by Seth Godin called The Dip. And if you haven't read it, I'd highly recommend it. It's a very short book. They even have it in audio. It's a really quick listen. And it just talks about, regardless of what endeavor, which venture you go into, that there's going to be a moment where you get really excited and it seems like it's going to be easy. And then you hit this little dip where it's like,

uh-oh, this is kind of tough. This is kind of in some instances might suck or this is too difficult or this is not what I thought it was going to be. I don't know if I want to do this. Almost everything worth pursuing has that little dip. But those that make it through the dip are the ones that experience the results and experience the results that you originally signed up for. So hang in there. Don't quit. Consistency and perseverance is what always wins in marketing. Repetition, it rules almost everything, always.

So don't give up with this list. Keep hitting it. And perhaps maybe just pull back just a hair on your frequency, but don't stop. Okay. So what do you do in the meantime? If you're going to pull back on that list a little bit, if you're going to, you don't have to, but if you're going to, what can you do in addition or what can you supplement that list with?

Well, I've heard through the Great Vine that there's a certain list that's performing very well. And a lot of people are saying it's their best list. And we've started using that list here in our office. And I would have to say it's quickly becoming our favorite list as well. And what that list is, that's the high equity owner occupied properties. High equity owner occupied properties. Now, that's nothing new, nothing groundbreaking. We've talked about that here before.

Investors have been marketing to this list for quite a while. but it's just not the obvious list. People like to, you know, just kind of tend and gravitate towards that low-hanging fruit. And, you know, when the non-owner-occupied list or that out-of-state non-owned or occupied list works so well, you know, there's not much room or not much need to go look in other areas. So, you know, it's just not the obvious list. So fewer are marketing to it. And last week I just put together for a couple of my clients or my coaching clients a short video on how to, to find high equity owner occupied properties inside of list source.

And this approach that I show them inside of list source will work with any list service. This is list source.com if you don't know what I'm talking about. That's where you can purchase lists of people in certain demographics and certain, you know, using different variables to pull out a category of people that you might want to market to. And so this is going to work for any list service, though, by the way. And the way a lot of the list services have, like they have a little checkbox as you're searching for high equity. Or I know list source has like a you can get 10% equity, 30% equity, 40%, 50%, 60% all the way to 90% equity. And it works.

I just feel like it misses a lot. And the reason I know that it misses a lot, when I was a real estate agent, I was a real estate agent for four years. we had to refer to the tax records frequently. And, you know, when you take a listing, you had to go pull all the data to upload it into the multiple listing service. And so often when we would do that and then we go show the or when the seller wouldn't see their listing on the internet, they'd say, well, this is wrong, this is wrong, this is wrong, that happened all the time. So we got really used to the tax records not being the most accurate. and I know that with all of these different list sources, different list providers, they all pull from the same sources.

They pull from the county records, the tax records, they pull from all of that stuff. And I just know that the information input by most, you know, government clerks is not always the most reliable. You know, it might be 60, 70% of the time, but there's that 20, 30% that slips through the cracks. So this approach that I've started using, I think, actually will pull out everything. In fact, you might get a little bit more than you need, but I'd rather have a little bit more than I need than missing some really viable options that could be homes of motivated sellers. So this is the video that I put together for my coaching clients, and I shared that with them. And like I said, this approach will work with any list service. It's not exclusive to list source, but that's what I use, and that's what I use to create that

training video for them. So there are too many visuals involved for me to actually share with you how I did it here on the audio podcast, so I want to give that video to you. If you just send me an email to, oh, wait a minute, oh, I got an idea. Wait, okay, so here's what I'll do. If you go over to iTunes, a little scratch my back, I'll scratch yours, okay? Go over to iTunes, subscribe. and rate and review the new podcast, turnkey real estate investing.

Then send me an email with turnkey in the subject line. I will just use the word turnkey. Send that to podcast at epic real estate.com. And then I'll reply to your email with a link to that video. Cool? So if it's, yeah, I guess it is a bribe. I was going to say it's not a bribe, but I guess technically it is. I don't want to play semantics with you.

I'm bribing you. All right. So if you go over and help my new podcast out and subscribe to it, rate it, and review it, then send me a podcast, letting me know that you, or send me a podcast, send me an email, letting me know that you did all of that to podcast at epic real estate.com. I'll go ahead and send you a link to the video. And, oh, you know what? Also, what I'll do is I'll include a secondary video that I made for one of my, for another one of my clients on how to pick a hot market in any market. So it's a technical. that you can use inside a list source and what you'll be able to do is you can match up the hot markets and then go and find just the high equity properties inside of those hot markets.

Okay, you can put those two trainings together. So I'll put both of those in that email for you. And then you'll be on your way. Okay, so if you missed any of that, go ahead and rewind and jot it down or just go to epicrealestate.com to episode 140. And the instructions will be right there for you. Okay, dook. So that's that. What's next?

I've got two more things. Oh, you know, finally I completed the formation of my hedge fund. You know, I've been talking about that for a little bit of a while, for a while now, and it's up and running, and we're now in the raising money phase. So the work is not done. It's been a lot of work, and we're now in the raising money phase. And I bring that up because this was a solution to a very big problem that I had going on in my business. And, you know, you might be having the same problem.

going on in your business, or you might be headed that direction. And I want to share with you why I did this. Because if your business is getting bigger and a little more complicated, and those don't have to go hand in hand, which is what I've kind of learned out of this whole thing, you know, setting up a hedge fund, though, that might be the right next step for you. So I'll share with you why I did it.

And also I want to share with this with you because there's some contradiction, maybe, a little bit of what I've talked about in the past. and I want to explain and create some clarity there rather than some confusion. And just overall, I want to prevent you from making the same mistakes that I made as some of those mistakes were very, very expensive ones. And we'll do that in 30 seconds right after this. Attention, attention. Shocking website reveals that shocking websites aren't really that shocking.

All kidding aside, go to find motivated sellers ASAP.com to get the inside scoop on how the nation's most successful real estate investors really find their deeply discounted properties. Go to find motivated sellers ASAP.com. Deeper discounts, less secrets. Find motivated sellers ASAP.com. So if you've been listening to this show for more than a month or so, you know my whole approach to investing in real estate is to do it without using or using as little as possible of your own money. And I've covered so many different ways to do this. and, you know, one of my favorite ways, and it's probably the dominant way that I used to build the majority

of my own cash-furt portfolio. So, you know, I guess what I've shared with you is I've always kind of shied away from taking on investing partners in my early experience. And although it was a limited experience with this approach, it wasn't the greatest on working with partners. I didn't like having two, three, or four,

or even more partners all involved in the decision process when it came to what to buy, what type of property to buy, and then what to do with that property once it had been purchased. So, you know, after a couple of those, I swore that point forward, the only way that I would partner with people was by being the lender on a property while my partners were the owners of the property or vice versa. I would be the owner and my partner would be the lender. And the primary reason I did this is because what, it did is that dynamic. It established a very clear-cut legal separation and protection for both parties.

You know, it just kind of details what each other's role in the business was. You know, the laws are very clear-cut about the rights and responsibilities of each respective party. The owner of the property has their rights and responsibilities and a legal protocol to follow should something go wrong. And the same with the other person or people, the ones that are holding the note on the property. They too, they have their rights, responsibilities, and protocols clearly defined by the law. So I really like this structure. And I've recommended this type of structure here on the show multiple times. And I still like it, by the way.

Okay, I still like it. But here are its limitations, at least for me, because I've purchased more than 200 of my 240 plus units with this specific structure. and I've done it so many times and it's now been divided amongst seven different LLCs. And those LLCs consist of different partners and different structures and working different strategies within those LLCs. And that's just kind of where the problem lies. There's too much going on. The structure works great with one or two LLCs or partnerships, but it gets a little hairy

when you try to scale it, when you try to get bigger. I mean, not only do the multiple partnerships get complicated, but the unique investing strategies that are implemented within those partnerships gets complicated as well. See, here's what happens. When you're the owner of all of the properties in these LLCs and you're in charge of the day-to-day operations with those properties and their respective investing strategies like I am, you've got to pay your lender partners on those properties every single month. I mean, it's the same as if you were borrowing from a bank.

there's a fixed payment attached to each of those projects, so to speak, those LLCs. And you're responsible for those payments whether you made money or not that month. And, you know, when some of your partnerships are implementing strategies that pay almost on a daily basis, and then that's rather easy because you're making money consistently. And then other strategies within other partnerships that pay on a monthly or a bi-monthly basis, it's manageable, but some months, you know, you don't make any money the next month you do. So you've got to pull the money together to make both payments. And even others, though, other strategies that won't pay for six months at a time or more.

You create a bookkeeping nightmare for yourself where you're responsible for fixed payments on all of these partnerships. So you end up having to issue, or at least this is how I had to manage it, as I issued promissory notes back and forth from LLC to LLC. and each time that happened, each LLC was making money or was managing their money, it just became a very uncomfortable and needless to say stressful situation for me, not to mention, you know, when one or two of those strategies don't pay anything out at all, but you still have a loan with a fixed payment attached to it, that gets very uncomfortable and, you know, stressful.

And cash flow gets to be a, and not the good kind of cash flow, the type of cash flow that keeps a business rolling. that gets to be a very, you know, difficult task. And this was my life about 18 months ago. So about 12 months ago, I decided that something it had to change. And so with the help of one of my mentors, what I did is I conducted an 80-20 analysis on my entire business. And I identified from where within my business 80% of my proceeds were coming. And sure enough, 80% of my income was coming from 20% of my activities or,

20% of my partnerships, if you will, with the strategies that we're implementing within those partnerships. So what I did is I made the decision to cut off the 80% that wasn't producing and to liquidate all of these partnerships and to do my best to move all of those funds into a new structure under one umbrella, which is the hedge fund. And that's what I've been doing the last nine months. It's kept me very busy. I didn't think the set up part was going to be. as time-consuming as it was, but it was. And I'm happy to say, though, at the end of this road, my life has been simplified significantly already.

I mean, I'm happier because I've removed most of those fixed payments from my business and my partners. They are happier because their money has been allocated to the three most profitable strategies that I had been working the last few years. And so returns are up. Returns are consistent and more predictable. Just everything all around. All is good.

it's getting better and it's getting better quickly. Now, people that want to invest with me now or partner with me, they actually buy shares in my fund this time, very much in the same way you'd purchase shares of a stock on Wall Street. I no longer have to, you know, open up a new LLC every time someone has money that they want me to use or if they want to partner with me. I mean, because that right there having to open up a new LC every time someone new comes along that wants to work with you, that right there saves a loan. saves a ton of time and a ton of money, especially when you live in California like I do.

Opening up an LLC and maintaining that LLC is very expensive in California. So my investor partners, they no longer get a fixed return from me or a fixed payment. So that fixed payment has been removed from my life, so that's good for me. But they now get a preferred return. And what that means is I don't get paid unless they do. So it puts us all on the same side and the incentive to succeed is now aligned between us. It's a much better way to do business. I mean, before when they're the lender and I'm the owner of the property, they're like,

I don't care what you got going on with your property. Pay me. Right? And sometimes I just couldn't or I had to rob Peter to pay Paul. And then next month I had to borrow back from Paul to pay Peter. And it was just, you know, it was, it made for some uncomfortable situation. situations. Thank God it's, we got out unscathed and everything is fine, but that's just what it did. But now it's, you know, now it's much more simple is that I don't have this constant fixed payment.

I got to pay every month. But then on the other hand, I don't get paid unless my, my partners get paid. So it just puts us everything in alignment. It's a much better way to do business. So what I've actually given up, though, is 100% ownership of the properties that I buy and hold. which is why, you know, I liked that other structure. I always wanted, I wanted 100% ownership of everything because I owned everything completely, but owning 100% of all that stuff complete, that size of a portfolio, it has its cons. It comes with its burdens. It comes with its serious responsibilities, like those fixed payments that you're responsible for,

whether you make money or not. With the hedge fund structure, I'll still have control of the property. I'll still get to do what I feel is best for the property and the portfolio. of which is what I thought 100% ownership would give me. And it did, but just gave me a whole lot more that I didn't want to deal with. I just didn't know of an alternative structure to where I could bring my expertise to the table in a partnership with other people's money and still be left alone to do what I do best, to cause that money to grow.

But now I do. Now I've got this structure. And all of this is, I rambled a little bit there at the end, and forgive me. And all of this is just to prove that every real estate question's answer is, it depends. There are just so many variables involved in real estate where one answer just doesn't fit all sizes. For example, if you were just going to partner

with one or two people, I still might recommend a structure of where you are the lender and the other person is the owner, just like I started my business. But if you have any intentions of growing big, that might not be the structure. you want to build your entire empire on because it just got it got complicated and getting big doesn't

mean it has to be complicated you can actually get big and keep it simple for example for now with with my fund i have i pay a nine percent preferred return to my investors or i guess they're officially called shareholders now and what that nine percent preferred return means is they get a 9% return on their money before I get to participate in the profits. And then there's a 60, 40 split on the profits overall, 60% to my shareholders, 40% to me, which, you know, it seems like I gave up a whole lot, right? Like I had 100% before, but I didn't really have 100%. Because I didn't have the flexibility and the mobility to move the way that I needed to

to make those things profitable. So they actually weren't as profitable as they could have been because I was so busy trying to manage those fixed payments. Now I've got that mobility and I actually think it's going to be much more profitable in this structure, but even if I gave giving 60% to my shareholders, that's all set up to get very big now without getting complicated. It's not complicated at all. And I get to practice my top three investing strategies. This is how it's going to be more profitable. I get to just focus on the three investing strategies. So all that time and effort was not was not lost at all. I was able to eliminate all the stuff that was costing me money

and focus on the things that were making me money, excuse me. And so I picked out the top three of all those things that were making me money, the three that provide me the greatest, safest, and most predictable returns. So yeah, that's why I chose the hedge fund. And you know what? I'll let you know what those three strategies are in case you want to copy them and duplicate them and use them in your business. as also I'm going to share them with you as in the very near future, many of you will

possibly get to benefit from these as well. There's three strategies that operate inside my hedge fund, okay, and they all operate in three different speeds. So strategy number one is transactional funding. And what that is are just, they're very short loans, maybe as short as a few hours and as long as up to a few days, but very short term. And why I'm going to expand this part of my investing is double escrows and concurrent closings, and a lot of you may already know this, they're becoming more difficult to do.

They're not more difficult, but finding the title companies that will actually do them for you is becoming more difficult to do. A lot of title companies are shying away from this practice. And it also appears that something similar is happening, although not as advanced yet. It hasn't happened as much, but we are seeing signs of it in our business. That's happening something similar happening with assignments. there may be a time in the very near future that if you want to be a wholesaler, you're going to need transactional funding to do it. And that can scare you or it can excite you.

It just depends on which perspective you look at that. But you could possibly need transactional funding to complete your business or conduct your business if you're a wholesaler. And what that allows you to do or what that transactional funding does, it allows you to close a deal. So you get the deal under contract and you close it. You take ownership on it and then immediately sell it to the buyer that you found. So that way there's no need for a double escrow or an assignment and it's just a very simple and quick A to B transaction immediately followed by a quick B to C transaction.

Now, this hasn't happened yet. So don't go start changing your business and everything. It's just something that you might want to keep your eye on and be possibly prepared for. there are some indicators in the market that this could be happening. And, you know, just with the governing bodies of real estate, they like to change things. They like to change things that make things more difficult for us. It's just we have to find a different way. And this would be that different way.

And it could happen. It might not not to fret, though, even if it does. Because if you're here, I'm going to be making that service available to the epic community. So the fund will be providing that service to the epic community. I mean, we already do this for a couple of our high volume wholesalers. We're already in the transactional funding business. That's how I know it works, and that's why we kept it inside of the hedge fund. And we're very close to making that available to all Epic Pro Academy members.

So stay tuned if you're an Epic Pro Academy member. And if feasible, we can go ahead and make it open to everybody, but one step at a time. Okay, so that's where we are with that. That's strategy number one of my hedge fund. It's quick and constant money flowing into the fund for my investors. It's just bam, bam, bam. So it's a great return for my shareholders, and it's a great service for the people that need that transactional funding. strategy number two is this is more of our midterm strategy our mid-speed strategy i should say we buy

we fix and we tenant property and then we resell that property to another investor with seller financing in it and when i conducted my 80-20 analysis this right here this was the no-brainer profit maker i mean frequently this this strategy produced a 50 plus percent return on the investment for the two lCs that it was working in and uh so That's strategy number two. Absolute no-brainer there. Let's see what else. Strategy number three.

Last one. So this is the long-term multifamily buy-and-whole strategy. I mean, this is the real wealth creator here. But oftentimes it's the slowest to get it up and running. I mean, that's why strategy number one and number two are in place to support the building and growing of this third strategy, the long-term multifamily buy-and-whole strategy. And this is what I was referring to earlier when I was talking about the LLC where they might not make any money for six months or so. It's because it took so long to.

to rehab these giant multifamily buildings. And then we had to get people in it. And, you know, one of them we've owned for a year before it actually made a profit. So, you know, when you have partners in a fixed payment attached to something like that, it makes a little difficult. But now we remove that problem because we have these other two strategies inside to support the building and the growing of the third strategy. Okay.

And then in the long term, that strategy, that strategy number three will support one and two. Okay. So there you go. A real quick and dirty behind the scenes. look at my hedge fund and how it works, and specifically the three investment strategies that have proved the most profitable for me over the last seven or eight years.

Hopefully there's something in there for you. This is not going to be for everybody, but depending on how big you're getting, I mean, I went all over that pretty fast. Not sure, I don't know, I could have left some things out, not sure. I should probably, I'll actually go back over this and let's schedule an online training.

I'll schedule a webinar or something to answer some questions. So yeah, let's do that. I'm not sure exactly though. Now I'm looking at my schedule when I'll be able to get to that. So if you have a burning question, meaning that this is something that you think would be right for your business. Or if you have a question about one of these three investing strategies I went over, I want to make myself available as frequently as possible to those that are serious about their financial future

and those that are serious about real estate investing. So if you want to discuss with me, anything that we discussed in today's podcast, you can schedule a call with me at, oh, wait, let's do this. Okay, we'll do this. I'm really all over the place today. I'll add this to the training, to the two training videos I discussed earlier. So if you follow the instructions on subscribing, rating, and reviewing my new podcast, Turnkey, Real Estate, Investing, is totally free. It doesn't cost you anything. It's going to take you 60 seconds. If you go do that for me, I'll reply with both of those short videos, how to find a hot market and how to find high equity properties in that hot market.

I just named those right now. But those are good titles because that's exactly what they'll do. And I'll also include a link, though, to my schedule for just a one-time, quick call to discuss anything about today's podcast or I guess we can chat about anything in your business where you're needing some support or advice. Okay. So if you miss those instructions earlier, go ahead and just rewind and write them down or go to epicrealestate.com, episode 140, and I'll have to, have Courtney put those instructions right there in the show notes and I'll make them have her make them very visible so they're easy to see and that's where those instructions will be. All righty. So I had Epic Pro Academy member Paul Hopkins ready to share his story about his very first wholesale

deal that he just closed and it's an awesome story and I ran out of time. So sorry Paul. We will definitely do it next Monday. It's a great story too. So make sure you come back next Monday. My apologies, Paul. But next Monday, we will get to it. Right here on Epic Real Estate Investing. I'm Matt Terrio, living the dream. Real estate investors, you need to know this. If you do not have a lead capturing website, a recent study reveals that you are invisible to 90% of the people that want to do business with you. We are Epic Real Estate Websites.com, and we have an easy three-step solution for you. Step one, select a design. Step two, choose your domain name. Step three, check out. Boom! You are now online capturing the names, emails, and phone numbers of people that want to do business with you.

Go to Epic Real Estate Websites.com. Act now, and your domain name is free. Epic Real Estate Websites.com. You've been listening to Epic Real Estate Investing, the world's foremost authority on separating the facts from the BS in Real Estate Investing Education. If you enjoyed this show, please take a minute to visit iTunes and share your thoughts. listening. We'll see you next time here at Epic Real Estate Investing with Matt Terrio. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.