Epic Real Estate Investing - Real Estate Returns Are Better than Your Retirement Plan | 632

Episode Date: April 16, 2019

Forbes has finally recognized that, when it comes to your future financial safety, real estate returns are better than your retirement plan. Today, we are explaining why this is so while simultaneously listing the advantages real estate has over other types of investing, which is yet another argument the mainstream media came to accept. Learn what brought about this general shift in the perception of investments, what cash on cash return is, and why real estate makes sense. 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 bought to you by Epic Real Estate Investing. My name is Mercedes Torres. I am your turnkey girl, and I am lucky enough to be partners in crime with Mr. Matt Torrio, the guy who created the epic real estate empire. If this is your first time here,

so glad you made it. Now, I created this show for busy people just like you who understand the importance of real estate, but just don't have the time or don't want to learn all the details of real estate. So this show is made to help you get started with turnkey properties, or for those of you who have already started your real estate portfolio, I want to help you grow your portfolio faster and easier. So, welcome to the show. And if this is not your first time here, welcome back. Awesome. So a shout out this week to a couple of people to Hitesh and his wife. You closed your first investment property. in St. Louis, Missouri. Congratulations to you both.

You may recall that I mentioned Etesh a couple weeks ago because I wrote a podcast about inspections. And unbeknownst to me, he was in the midst of his inspection. And he wrote me a quick little email to thank me about what I had written. And he just said, thank you. So congratulations to you. And I look forward to serving you again. to Jonathan T, our friend from Canada, closed on his second property with one of our private

lenders that lends to Canadians. So congratulations, it was a little bit of a longer haul, but we did it. And to Jason P. He bought his first property, and it was one of his goals. And congratulations, Jason. I know you met your goal. So kudos to you, buddy. Anyway, as many, of you know, we're going to get right along with the show. And you know that I follow a lot of personal finance and investing people, not only on social media, but I listen to podcast and blogs and I read books. Well, let me correct that. I don't necessarily read books now. I hear books. I love audiobooks. So I just fill my brain up with just information. that I feel is going to be tangible, but that's going to serve me and my listeners.

So I'm always the most attracted to advice that goes against the grain of traditional investments. Investments like stocks and bonds and mutual funds, CDs, et cetera, that kind of stuff. And there was an article that I came across on Forbes.com. It was written by Ari Rastager. And the reason I get so excited when I see these types of articles is because there are finally signs that people are starting to get it. People particularly in the media and the masses, they're starting to recognize that the antiquated advice of investing in stocks

and bonds and mutual funds and CDs. Essentially, saving your money is a losing strategy when it comes to a solid and stable life in retirement. I mean, someone like Robert Kiyosaki and Matt Terrio himself, this is the very foundation of their message. Streams of money over saving money. Because the other way just doesn't work anymore. And if it does work, by the time you get to that goal, you're just too old to enjoy it.

And it just seems pointless. Anyway, it's nice when the Main Street media finally shares this information to a broad audience as its advice will, actually help people get ahead. Now, the traditional advice, it can stabilize your finances. I'm not saying that it won't. It can help you maintain what you already have, but it does almost nothing to help you get there. Helping you get ahead to the point where you want to have some extra, extra is always good. Extra is going to help you do the fun things in life, not the things that you have to do like pay your rent or pay your mortgage or pay your taxes. Getting extra every month is going to allow you to do the extra things in life that you aren't always able to do. Anyway, the article is titled

Is Real Estate a good way to generate strong returns for, retirement. Absolutely. Having a reasonably steady and a most predictable income stream is the answer for retirees. This is why investors love real estate. I mean, you've heard it time and time again. Cash is king. I mean, Matt himself has modified it and we often say cash flow is king. It's most certainly a cliche, but it's the reality with real estate, particularly with a simple modification. Cash in hand is king. Now, our personal modification of cash flow is king is exactly the same thing. It's really just semantics. But here's why cash flow is king. It has to do with protecting your principle. One of the most important goals for generating retirement income is lowering risk while protecting your initial investment capital. That's called principal protection. And companies that produce consistently high and growing levels of free cash flow for investors who realize income on a quarterly and monthly basis are much less likely to go

bankrupt and take all of your money with them. While cash flow is really not the, you know, end all, be all to flawless investing, the greatest investors in the world candidly agree that there are times that they could be wrong. Like sometimes their crystal ball fails or sometimes, you know, their projections don't go as plan. So they must plan. So they must plan. for that possibility. Cash is the backstop. Real estate opportunities offering cash on cash returns. Now, for those of you who aren't really clear on what cash on cash return is, it's a matrix use to describe the return you are generating on your initial capital contribution annually. Basically, how hard your money is working for you.

the higher the return, the better. Meaning, you're doing less and you are growing your wealth. It's growing faster. So, real estate opportunities offering current cash on cash returns should have enough cash to pay timely distributions and to pay all of the operating expenses like the mortgage, the taxes, the management company and in the end, it's growing your bottom line. Now, rental income, say from a single-family rental or from an office or a multifamily property, it's the best source of passive income. Now, passive income being the type of income you receive that you're not actively managing the property somebody else is. And it's rivaled by strategically investing for dividends. That's what Wall Street would call it, the Wall Street equivalent. One thing I always like to point out when I use

the term passive income, because I have this conversation on a daily basis with the people that I get to speak to. Yes, the term is passive income. Absolutely. Some people label it mailbox money. And now in today's era, it's not so much mailbox money. It's automatically transferred money into your bank account because all of our rents are now deposited via an ACH transfer. But this passive income doesn't completely mean hands off completely passive. It doesn't mean it's uninvolved. You still have to, manage your property managers. You still have to manage your accounting every month when you get your rental statement. So it's passive in that you don't have to physically collect the rents, but it's not uninvolved because you still have to make sure that those rents were collected and they actually hit your bank account. So the theory is simple. The property diligently sifts through applicants and tenants, and the result is the investor receives current payments

on a monthly basis or a quarterly basis or whatever that dividend is. However, again, passive income doesn't mean uninvolved income. So why real estate makes sense? No one really knows for certain what actually drives stock prices up or down. But investing in real estate provides a greater degree of control over potential appreciation. And there are things that the owner can do to boost a property value and income of their property. For example, and this is something that I do on a regular basis. I own a duplex.

I own a duplex in Memphis, Tennessee. And in the back of this duplex, I have a really big. area, parking area, but when I bought the duplex, it was just gravel. So I opted to maximize my returns and I have the gravel paved and then I created lines for parking spaces. So I decided, okay, each part of the duplex, each unit was going to get one parking spot. But I drew four parking spots. So I give one for each unit, so a total of two, and then I rent out the other two for $25 a month. Now, I rent each unit for $600, and that's what I advertise, but I'm actually getting $625 per unit because of the additional $25 for each parking spot. So I have control over my

investments. I have control over how I can increase my monthly bottom line. In some cases, I might fix up a property a little bit nicer just to get a little bit more rent. So that's what I mean over real estate provides you the opportunity to control your investment. Control is everything. When you invested in the stock market, you give up all control. You have no control over rising stocks or falling stocks. With real estate, you have all the control. You maintain it. A good real estate investment starts with these qualities,

a solid structure, a great location, creditworthy tenants, ordinary repairs, not excessive repairs, annual or scheduled rent increases, those are my favorite, and the ability to pay the mortgage every month if you have a debt on the property, of course. There are various ways to invest in real estate, various ways. And the author of the article that I'm speaking of, his personal preference is private placements, which they're offering that accredited investors can partake in through investment firms. In fact, a few years ago, that's exactly what we did with the Epic Welf Fund. And if you'd like information, you can visit EpicWealthfund.com and download the executive summary. That's only for accredited investors that don't want to deal with their own.

own real estate properties. However, private placements are another way that you can jump into creating a bigger return that what a current retirement plan is doing for you. Now, in this article, the author lists a last piece of valuable advice. And it's to work with an advisor if real estate is foreign to you. And I 110% concur. In order to invest in real estate for retirement with the least amount of risk and the potential to generate the highest return, it behooves you to tap into specialized skill and knowledge. As you know, I'm happy to share with you everything that I know. I mean, this is the reason I do this podcast and this is the reason I speak to you, whether you choose to work with us or not. That's how we roll around here. We just share information and hope that you'd want to work with us.

But you can reach out to me, schedule a call. I'd be happy to have a 20, 30 minute conversation about how to get you started in real estate. And again, I am not a financial consultant. I'm not a real estate advisor. I'm not a real estate advisor. I am a real estate investor with my own portfolio that I started from scratch. And I simply share what I've done. I do that with all of our clients. And it so far is working. And it's been working for the last 10 years. So, ladies and gentlemen, at the very least, I'm not here to tell you what to do with

your money. I'm simply sharing. I'm sharing with you to get your wheels to spend. if you have money parked in a vehicle that you have no control over, like stocks or bonds, your IRA, Bitcoin, and you're just letting your money sit. You're not doing yourself or your loved ones any favors. That's it for today.

My name is Mercedes Torres, your turnkey girl, and I will see you on next week's episode of Turnkey Tuesday, where cash flow is king. If waiting for your investments to grow feels like waiting for pink to drive, there's a powerful secret your financial planner doesn't want you to know. You can accelerate your investments growth by two, three, or even four times. That's bad news for Wall Street, but great news for you. We're cash flow savvy, and we'd like to offer you free information

that will show you how to take control of your investments and double, triple, or even quadruple their returns. And it's yours for free. For the secret your financial planner doesn't want you to know, go to cashflow savvy.com. That's cashflow savvy.com. This podcast is a part of the C-suite radio network. For more top business podcasts, visit c-sweetradio.com.