Epic Real Estate Investing - Real Estate Success Tip You Won't Hear Anywhere Else | 930

Episode Date: February 16, 2020

This Sunday episode is all about the final frontier for financial freedom and how to get yours! Stay tuned and find out Matt’s resources and tips that tremendously helped him on his path to success in real estate! Learn more about your ad choices. Visit megaphone.fm/adchoices

Hey there, Rockstar. Today, it's all about the final frontier for financial freedom and how to get yours. This is Terio 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 rei-aise.com. Here's Matt. Hey, Epic Investor, it's Matt Terrio from Epic Real Estate, where we show people how to invest in real estate with an emphasis on retiring early. You don't have to retire, but you just can create the option for yourself that you can retire any time that you want. That's freedom. That's real freedom to me. And this is the epic real estate investing show. And if this is your first time here, really glad that you found us.

And if you like what you hear after where everything's all said and done, make sure that you hit the subscribe button before you go, because you don't want to miss an episode. We post cool stuff like this each and every day. And if this is not your first time here, welcome back. And thank you. Thank you for coming back. Thank you for sharing this with your friends and family. You are the absolute best for doing that. I love this about you. So thanks again. All righty, so let's talk about the final frontier of financial freedom. You know, I was at our new epic think tank workshop this past week. And I'm getting to meet a whole bunch of new people here.

And the question came up. It had been a podcast listener, the first time I ever met him. And he had asked me, where did you read that real estate is the final frontier where the average person has a legitimate shot at real wealth? And I didn't have to think about it too much because I remember exactly where I didn't actually read it. I heard it. You know, I went on to tell my story about how Napster crushed the music stores, how the digital download went and put all the music stores out of business. If you're, I guess under the age of 30, believe it or not, they used to have music stores.

You'd walk into a store and actually buy music on compact discs and cassettes and albums. And that's how I made my money in the first portion of my life, the first half of my life, is I sold compact. I sold music. And I had to start life over at the age of 34 because Napster just kind of changed the way, not kind of, totally changed the way that the world consumes music. Now we just go to our computer and download it. Now we don't even download it. Now we just stream it.

Now you don't have to, you don't even need any computer space to store the stuff. And so I had to start over at the age of 34. and I went from my very first seven figure year, the previous year, to $7 an hour, bagging groceries. And it was the grocery store manager of all people that shared that expression with me, that real estate being the final frontier for the average person, to have a legitimate shot at creating real wealth. And at the time, it sounded really good when I heard it.

Because after about six months of that place, in hindsight, I think it was a total blessing, and it's made for a great story ever since. But at the time, it felt like hell. I wasn't sure if what he had said was true or not about it being the final frontier wealth. But I really missed my money, and I wanted it back. So I went with it. And that was probably, I don't know, 15, 16 years ago now, at least. And I've yet to see anything since that rivals real estate's wealth creation powers,

especially when it comes to creating wealth for the average person. Certainly there are things out there that there's wealthy people out there that don't have any real estate and made their money in a different way. But for the average person, that's the road. That's the way to do it. And what I mean by average person is you don't need any special skills or special talents, not a certain intelligence level, no privileges or background or connections or resources are necessary to harness real estate's wealth creation power.

and I've actually done quite a bit of research on the subject over the years in search of something easier and better because, you know, face it, I'm human too. And if there's an easier way, I want to know about it. If there's a better way, I want to know about it. And I just did not find anything else that would be easier or present more certainty in creating wealth and overall financial freedom than real estate. Haven't found it. There was nothing.

And now I've been looking for a while. I kind of stopped looking because I just became good. convinced because I have found so much info that supports the idea. And I'll share with you what I found. And before I do, if you'd like to go deeper in your real estate investing, and you might like the new stuff that we're doing with our private clients at REI-A's to get them accelerated results in real estate. If you like the sound of that, you can head over to REIAIS.com and check out what we're doing over there. All righty-I-Ais.com. Now, some of my research, because in the beginning, I want to make sure I was indeed pursuing the right thing.

Like I said, I missed my money. And all I knew how to do was program a drum machine, press it to a compact disc, and go out and sell it. And I was really good at that. And I did, but that was like really my only skill. So there wasn't a whole lot of demand for that type of person in the industry at that time because even all the major labels, like Sony and Universal, like they were laying off tens of thousands of people at a time.

big numbers of people were losing their jobs. That's how big of an impact the digital download had on the music industry. So I knew I had to learn something new. And I wanted to make sure whatever it was that I chose that I was going to learn was attached to a really good, promising, strong income potential. I wanted my money back. So what is my best chance of making it happen? And so one of the books that I was reading while I was at the grocery store

was a book by Ken Fisher. You might know him of Fisher Investments. He's actually running a lot of commercials right now. But I read this book 15, 16 years ago, and I didn't know who he was at the time, but the title really grabbed my attention. It's called The Ten Roads to Riches, the Ten Most Commonly Traveled Roads to Riches.

And I was like, okay, the ten most commonly traveled roads. I want to read that book, so I did. And it was ten chapters, and it had ten different ways. of how to get rich. And it was Ken Fisher, who a very successful financial planner with a very elite, prestigious, wealthy clientele, just did an assessment of his clientele and looked at the 10 most common roads to riches that his own clients had traveled.

Like number one was founding a company. Yeah, you started a business and it blew up. You know, if you are a company founding, that typically means something really big happened after you found it. Otherwise, you know, you're just an entrepreneur, right? The second one was CEO of a company. So you've climbed the corporate ladder and it rose all the way to the top. And you became in charge.

You became the man. You became the woman. You became the person in control of that. The third one was what he called ride-alongs. So like the number two people to really wealthy people. One of the examples he gave you or gave was Warren Buffett's right-hand man, Charlie Munger. Maybe you've heard his name, maybe you haven't. But a very, very wealthy man in his own right.

And he got there on basically the coat tails of Warren Buffett, not to be demeaning by any means. I'm sure he's a very smart, intelligent person to be Warren Buffett's right-hand person. But a ride-along. That's what he called it. Another example was Bill Gates' ride-along, was Paul Allen. and, you know, Bill Gates pretty much a household name. Paul Allen, becoming more and more known, I guess, especially if you're a sports fan, he owns a couple of franchises.

But Paul Allen was another example. So being the number two person and right along with someone else that's on their way up. Number four was celebrity. So an actor, a singer, an athlete, those were examples. Inventors. You invented something that changed the world and you got paid a business. boatload of money for it. Another one that I thought was really funny, but he pointed out so many examples, it was like, wow, I guess that actually is one. And it was marrying well, like you marry

into wealth. And I suppose that's certainly an option. And I immediately was thinking about, I mean, just the vision that comes to mind is, you know, the young, attractive girl marrying the old man on their deathbed. But the examples he gave were actually of men doing it. Oh, my gosh, the name escapes me. He was a political candidate. He ran for president, really good-looking guy, a dark brown hair, younger-looking,

and he married into the Heinz fortune, the heiress of Heinz. And he made a bunch of money doing that. And then he got divorced, walked away with a bunch of money, and then did it all over again and married into some other family. I don't know if the sequence was right. I don't know who he's married to now.

Not Clark. Oh my gosh. Anyway, it doesn't matter. Marrying well, that was another example. Another road to riches was stealing it. And he put in parentheses legally, of course. And what he's talking about is mergers and acquisitions, doing hostile takeovers.

If you saw the movie Pretty Woman, that's what Richard Geer did. Right? Mergers and acquisitions. Then using OPM, other people's, money. And the example he gave there were hedge fund managers, people that take other people's money and invest it for them and then get a big fat fee for doing that. So hedge fund managers. That was another one. And then another one was just having good fortune in the stock market, being, you know, picking winners and letting compound interest do its work. So that was another one. And then

And lastly, real estate, what he calls land barons. And he went on specifically to define that, people that buy real estate and hold on to it. And even had a distinction in there and talked for a few minutes that he is not talking about fix and flippers, which I thought was very interesting at the time. And it's probably why I'm such a buy and hold fanatic. I certainly flip properties because I like the cash, but most of the time I take that cash and I direct it towards creating cash flow, buy and hold. So the land baron.

So when you look at all of those, you know, of someone that interacts with a high volume of wealthy people, and he looks at all those common roads, you know, you could found a company, you could climb the corporate ladder, you could find a really wealthy person and tag along, right along with them. You could go out and become a celebrity. I mean, maybe you're going to be an actor or an actress or you have got a really good voice and you want to go on American Idol and take your chances there. Maybe you're physically gifted and you're going to be a great athlete.

That's certainly all possible. You could invent something. Or you can go and hit the circuit and try to find someone a wealthy family to marry into. You could take on mergers and acquisitions. you can become a hedge fund manager. You could take your, do a lot of studying and take on the stock market and hopefully good fortune and a little bit of luck is on your side and wait a long time to let compound interest do its work.

Or you could do real estate. So just with that study of somebody in that position, I just went down all of those. I was like, nope, founding a company maybe, but it ain't going to be Microsoft, right? Not going to be Facebook. a CEO of a company. I really don't have the credentials to go climb the corporate ladder. Ride along. I don't know anyone that's on their way up that I could go and support that way.

Celebrity at this point, I kind of had enough of the entertainment industry. Plus, I'm not really gifted with a good voice or acting chops. Inventor, I didn't really have any ideas. Marrying well, after just getting divorced through all that whole process, that wasn't really high on my list. And the mergers and acquisitions, I had no idea how that even worked. And then using other people's money becoming a hedge fund manager, totally no comprehension of that either. The stock market just, it seemed like a long time, even if I got it right. So real estate, that's kind of what I was only left with.

And that's how I chose this. And that's how the wealthy do it. And I was like, okay, I'm all in. and that's when I made that big giant investment in my real estate investing education. And I just went and applied myself and did what they told me to do. And I just kept on doing it with massive consistency and persistence until I got what I got. And looking back, I think I chose the right path because all those others, they still don't seem like really great options for me today.

So the final frontier, my grocery store manager, quite a smart person, wise beyond their years. And then I went and did this just recently before I started recording this. I was like, what does the research look like right now? Right? So I found, I think this was Forbes. How the World's Billionaires got so rich. This was the 2019 list. Okay, the world's billionaires with a B.

Top 10 industries for 2019. Number one was finance and investments. So there you got those hedge fund managers, right? There's 306 billionaires. It comprised 14% of the list. Number two was fashion and retail. So that was 230 billionaires, 11% of the list. So if you've got the fashion chops or to run a retail store,

I don't know exactly what the details are that, but there is an option. Right. Number three, real estate. 223 billionaires in the real estate industry, 10% of the list. So it might not been the biggest. wealth producer or producing the most billionaires, but when you look at finance and investments, hedge fund managing or fashion and retail, real estate seems a whole lot easier to me and more comprehensible and simpler than those first two.

Right. And then number four, just for entertainment purposes only, was technology. Then number five was manufacturing. Six was diversified. I don't actually, don't know what that means. Does that mean diversified industries? I'm not sure. Number seven was food and beverage.

eight was health care, nine was energy, and 10 was media and entertainment. Real estate. Why is it real estate? Why did it show up in Ken Fisher's book as one of those top ten rose to riches and certainly the most accessible for the average person? It ended up as number three on the top ten industries for 2019, and when you go through all of those, still, probably the only one there accessible to the average person, all confirming what my grocery store manager said to me 16 years ago.

So real estate, here's why. Because it's the only asset class available to the everyday person that produces cash flow, that appreciates, that reduces your tax bill. It's one of the last tax shelters available to the average person. You have the ability to leverage in real estate like in no other. So there's your five times on average all of the other profit centers by the use of leverage. and then you've got the amortization thing. Someone else pays that off for you. Someone else is actually paying down the loan.

And then you can also force equity. And it's a hedge against inflation. You can't say that about any other asset class. You can't. And it's this that led to Andrew Carnegie's famous quote at the turn of the century. He said, 90% of all millionaires become so through owning real estate. And he said that at the top of the century. And if we look at the 2019 list, it's pretty darn accurate, 90%. More money has been made in real estate than in all industry

industrial investments combined. The wise young man or wage earner of today's invests his money in real estate. Let me read that again. The wise young man or wage earner of today invests his money in real estate. Got it. He's saying it's a wise investment. That's Andrew Carnegie, billionaire industrialist. And he was a billionaire a hundred years ago. So that meant a lot more back then. Marshall Field, an American entrepreneur, said buying real estate is not only the best way,

the quickest way, the safest way, but the only way to become wealthy. It's not only the best way, the quickest way, the safest way, the safest way, but the only way to become wealthy. Marshall Field entrepreneur. Lewis Glickman said, The best investment on Earth is Earth.

And Armstrong William said, Now, one thing I tell everyone is learn about real estate. Repeat after me. Real estate provides the highest returns, the greatest values, and the least risk. It's the final frontier where the average person has a legitimate shot at creating real wealth. And ultimately, financial freedom, your financial freedom. You really don't stand a chance at any sort of financial freedom unless you incorporate real estate into your financial plan. So who said that?

Who's that quote from? That would be mine. You just don't stand a chance unless you figure this real estate thing out. And that's why I produced this podcast and have been doing it for more than a decade now. Can you believe it? Officially the longest running active real estate investing podcast. So tune in here each and every day and I'll continue showing you how to be a better real estate investor so you can create your wealth and financial freedom too. So if you found this episode of value,

There's a good chance you know someone else who would also. So if it makes sense, share it with them and ask them to click the subscribe button when they get here. And I'll take really, really good care of them, I promise. All righty? That's it for today. God loves you and so do I. Peace, blessings, and success to you. I'm Matt Terry O, living the dream.

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 boy, 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.