Epic Real Estate Investing - Real Estate Investing Business Plan Example | 780

Episode Date: September 19, 2019

In this episode, Matt shares the Epic Game Plan that will help you become financially independent and consequently a wealth creator! Take control over your profit and become your own boss! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is 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 R-E-I-A's.

Here's Matt. Hi, my name is Matt Terrio. I'm CEO of Epic Real Estate. And if you're looking for a practical example of a real estate investing business plan, then I'm going to share with you the very one that set Mercedes and I free, as well as many of my Epic clients. And when we're done, if you'd like some help, some extra help with yours and putting it into action, I'll show you how to get that type of one-on-one support.

Now, a real estate investing business plan, it's important because if you don't have one, I mean, who knows where you're going to end up. But when you have a proven one in place, your destination, it becomes very predictable. You know, I was thinking the other day about when Mercedes and I, when we got started, we had a very simple, basic game plan. And it worked out wonderfully for us. And this is the game plan that I'm going to give you right now. We started by just flipping properties to generate some cash.

And then we started doing really well for ourselves. And once we had a comfortable amount of reserves and the best, We were like okay, we're making this money, but we're working every day to do it. We've got to shift our focus to creating some residual money and our initial plan for creating cash flow was this we would flip five houses when then we'd hold the six and we did that a few times Then we were like okay, I think we can now flip four and hold the fifth and so that was our plan for a while and then we'd flip three and hold the fourth and then we'd flip two and then hold the third and ultimately we just flip one hold one flip one flip one hold one, and eventually it created enough residual income where we didn't have to flip properties at all anymore to pay our bills and survive. And so once we got that residual income to exceed our

monthly expenses that paid for our lifestyle, we then redirected that excess cash flow to create more cash flow. You see our assets were buying assets. We were working less and less for money and our money was working more and more for it. So our money was creating our wealth. Does that make sense? Let me show you how we did that. And I'm going to call this business plan the epic game plan. And it comes in three phases. So phase one, this is the milestone of financial independence. That's first. So we're going to go after financial independence. And this is where you are in control of your income. You are in control of your profit and you don't need a job to support yourself financially. You are in total control of your own finances. This is where you become your own boss. And if you're going to be financially

independent, you can't be dependent on somebody else, right? So you have to become your own boss. You have to be dependent on you. And that's where the independence comes from. So step one is to become your own boss. Step two is to decrease your expenses. And to make this happen in the beginning, you're going to have to cut back on the excess, most likely, depending on your situation. And perhaps you might even have to make some sacrifices. But it won't be for long. So exercise a little bit of patience. Hang in there. And step three is you go to work. You got to work like hell because you've just become your own boss, right? but so many people forget is that in the beginning you've also become your own employee as well and business just doesn't run without employees so you got to wear both hats for a minute so become

your own boss you become your own employee and then you work work work until you get your active income to pay for your lifestyle got it that's phase one phase two financial freedom so you've got your financial independence through your active income your freedom is going to come as a result of your financial or excuse me of your residual income. Well, that's now the big focus. And to do that, you start by developing systems, systems around your income generating activities. You see, the mission here is to get your income generating activities to happen with or without your direct participation. And then once those are in place, it's time to start acquiring cash flowing income properties. And as fast as, and as many as you can, responsibly, of course. And then the third thing in

the freedom phase is what I call a, I don't know, it's a poor man's version of asset protection. You want to start diversifying the locations of your properties. You want to diversify income properties geographically. You want to diversify your teams as well. That kind of happens as a result just by default of you diversifying your locations. And so you stay focused on these three things until your residual income pays for your lifestyle. Do that. And the second phase of financial freedom, it's going to be yours. All right, phase three, wealth creation. You see, once your residual income is paying for your lifestyle, you're going to keep going with this plan, but redirecting the excess residual income that you create towards creating your wealth.

This is where your money starts to make your money. And this is the big differentiator between the common person and the wealthy person, meaning most people go about creating wealth the slow and more difficult way. They just work, work, work to save this giant pile of money so that somewhere down the road, someday, they'll eventually be able to create a residual income from that big pile and then they can go ahead and live life then. They never effectively make this shift from they working for their money to their money working for them. You see, most people, they just don't earn enough to save enough to create their wealth before the most active years of their lives are over.

But when you have residual income coming in in excess, you're able to live and enjoy life right now and your wealth, it just gets created automatically. And this is where Robert Kiyosaki got a lot of backlash when he said, the rich don't work for money. Do you remember that? I think that's lesson one of the rich dad, poor dad book. And people were like, what are you talking about the rich don't work for money? And a lot of people had a really, I don't know, a twisted idea of what that actually meant.

But what he really meant was they don't work for money. Their money works for their money. And this is the real estate investing game. plan that I'm giving you right now on how you actually make this happen for yourself. So in this third phase, wealth creation, you're going to be making a big shift from working in your business to working on your business. You're going to be managing your assets to create more assets. Your cash flow is going to be creating more cash flow. So the second thing here is in this phase is you're going to become a manager of managers. You're going to manage the property managers that manage your properties. This is where you start to

a true business owner. And then third, the next level of preserving and protecting your freedom and above and beyond the legal structures that you'll obviously put in place, you're going to want to start looking at diversifying your assets. See, Mercedes and I, we got started just flipping single family houses. And then we started holding single family houses. We then moved to some duplexes and fourplexes. And then we got ourselves a 14-unit building, a 16-unit building, an 18 unit building, and then we got a 44 unit building, and then a 50 unit building. So we diversified into multifamily. And then we started looking at our books.

And what we did is we crafted a nice little balance between all of the tax advantages that real estate gives you, and then all of the potential active income that we could make. So we structured our portfolio to maximize our income by minimizing our tax liability. And we did that by investing in and creating seller financed note. So this is what this did for us. It increased our cash flow. The notes increased our cash flow. And then the properties that we held on to,

it offset the extra tax burden that that extra cash flow from those notes created. So we started with single family, we added multifamily, and then notes. And now we're adding vacant land to the mix. But take note, we're doing all of that after we achieved our freedom, right? This is part of our wealth creation mode.

Most people start diversifying all of these assets way too. They go too wide, too soon, when they should be going deep right at the beginning and stick in there for a while. All righty, see you next night. Take care. 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 board, 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.