Epic Real Estate Investing - Real Estate with Tim Ferriss, Jamie Foxx and Steve Harvey | Episode 216

Episode Date: August 8, 2016

Today’s episode is focused on developing the right mindset to be a successful real estate investor.  It’s an important topic because so many of our listeners have heard dozens of episodes, understand the tactics, and know that real estate is the way to true wealth, but still haven’t done their first deal.  This podcast is intended to light a fire under you and make you see clearly why the time to act is NOW!  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

This is Terrio Media. Broadcasting from Terrio Studios in Glendale, California, it's time for Epic Real Estate Investing with Matt Terrio. Welcome to Epic Real Estate Investing, the place where I show people how to escape the rat race using real estate. Just got to do one thing. Just got to shift your focus. Shift your focus from making piles of money to making streams of money. Do that one thing, just one time. and you are on your way.

It's not the most exciting path. Nope, not. It is the fastest, though. So the whole point is, let's get there fast. So then we can enjoy an exciting life. Because once you get their life, then does become exciting. And speaking of exciting,

the epic intensive September 22nd through the 23rd, half the tickets are sold. So if you planned on going, you might want to go do that. So we've only been open for about a week and a half. The tickets have been sale for a week and a half. Half of them are gone. So epicintensive.com.

You know what else? I thought that was very interesting. I think there's only one or two people out of all those tickets that are sold are actually from California. It means people are traveling, that there's something hot going on here in Los Angeles, and they're getting on a plane to come, and I'm going to make sure that they are not disappointed, and I want you to be there as well. So go to epicintensive.com, and the sooner you purchase, the lower the price is going to be.

As we approach capacity, the price will be going up. All righty. So epicintensive.com. Go get your tickets. I would love to meet you. I'd love to have you there. I want to see you. All right.

So this, let's see. In our Epic Pro Academy private Facebook group, we had a couple really good questions that I thought were applicable. And the answers would, I'd like to share them here. So one of our members wrote, I have a property under contract that is hard to move. The seller has verbally agreed to extend the closing date. Is that enough to keep marketing? Or do I need to open a new contract? Okay, so it depends if how what's your relationship with the seller is.

That is enough to keep marketing. However, you probably want some proof just in case. So you don't need to open up a new contract just an addendum. Okay? Just an addendum that would extend the term. But while you're doing that, I would take that a step further and I'd actually request a price reduction on the basis that the market has spoken. We've been under contract for a certain period of time, and we do not have an end buyer.

We have not found a solution that is going to validate the price that the seller wants. So it doesn't look like the property is worth what we, you and the seller, thought it was. Mr. Seller, Mrs. Seller, doesn't look like the property is worth what we thought it was. Would you like to wait for top dollar or would you like to sell fast? That's the big question that I'd ask. Would you like to wait for a top dollar or sell fast? And the answer, whether they say yes or no, doesn't matter. You got the same response coming.

They say yes, you're going to say this. If they say no, you're going to say the same thing. Okay, well, I'm just going to need 14 days to make that happen. No big deal. But let's put it in writing for 30 days in case we receive multiple offers and we need extra time to pick the best one. That's where I'd go with that. Okay.

So if you have to get an extension, they agreed to the extension. it's not irrational, uncommon, or what's the word I was looking for, unreasonable to ask for that extension in writing. So they're expecting that. That's not an unreasonable request. But when you go to request it, request their price reduction at the same time on the basis that, hey, we need an extension. The market has spoken.

Then the market is not validating your price, Mr. or Mrs. Seller. Got it? Cool. My next question is, hey, everyone, need some help. I'm dealing with my first private money lender. and she's a banker by trade. She is lending under the same application guidelines as if I were borrowing from her bank. The funds will just come quicker from her IRA.

She's requesting Fannie Mae Form 1003 or a full personal and business financial statement. Both ask for a full account numbers, balances, monthly payments of all accounts. Is this customary and legit in the private lending world? Any experience would help or any experienced help would be awesome. Kind of stuck here. So wow, this is your first private money lender. Unlucky you, but I have good news. It's only going to get easier from here because this is not customary in the private lending world.

But it is when you ask me, is it customary? I'd say no. Then you ask me, is it customary and legit? The answer to being legit? Yeah, absolutely. The person with the money can make the rules. Okay. So it's a little bit odd that you've happened to do.

jump through these types of hoops through your very first deal. But that would also make me, and that would raise a new question, is, what does your deal look like? You know, is this just, and I don't have those details, so I can't answer specifically, but the things that I'm thinking about are, if the private lender is asking for this much information and it's, it's one of two things, because she's a banker by trade, she's bringing her professionalism of her job into her personal life, which is perfectly okay. She has every right to do that. But I've noticed that when that happens, they have a tendency to go a little bit overboard.

But that's one thing that you could be looking at. The second thing is your deal. Is there something up with your deal that she needs to take these extra precautions? And then the third thing I'd be thinking about is if you have got a good deal, If your deal is strong enough, you probably shouldn't be limited to just this one lender. Does that make sense? If you've got a good deal, then money is going to fight for you. Money, people are going to be asking you to please use my money if you've got a good deal. Now, if you've got only one person in town that's, or one person in the game that's considering lending you money,

now you've got to play by their rules as, you know, as overboard as they may have, appear to you. Okay? So those are my thoughts. I wish I had a little bit more detail, but, but again, the bottom line is it's her money. She can do whatever she wants before she gives it to you. Got it? Cool. Great questions. And yeah, keep them coming. I will, you know what? I was thinking, while driving into the office today, I was listening to the Tim Ferriss podcast. And this is the episode with, the episode I was listening to was the one with Jamie Fox. Really great episode. I'm a fan of Tim Ferriss.

It gets a little highfalut and high brow for me sometimes. And not every guest he has is, you know, of my interest. But a friend said, you got to listen to Jamie Fox interview. You got to listen to the Jamie Fox interview. And I was like, okay, cool. So I listened to it. And it was really fantastic. And I don't want to spoil it if you want to go listen to it.

But it's definitely worth your time. So go check. that out. But one of the last questions that Tim had asked Jamie was, and I thought it was a great question. And it was, what advice would you give your 20-year-old self, your 30-year-old self, and your 40-year-old self? Tim asked that of Jamie. And I started thinking about what would I tell my 20-year-old self? See, I've got a birthday coming up. I'm going to be 47 years old next month. And I'm just right around the corner from 50. And that just freaks me out because I feel like my brain, I still feel like I'm a teenager. I feel like I'm 18, 19 years old. And, you know,

my body is going to be 50 years old here. 47. That's not rush it. I'm going to be 47 next month. I've got a few more years before 50. But I started to think about what I would tell my 20 year old self or my 30 year old self or my 40 year old self. I can actually say, what would you tell your 40 year old self? That's where I am in life. And I would certainly have words for the younger versions of myself. And I think those answers are applicable. to what we discuss here each week. I mean, the answers are applicable to all elements of life

and all aspects of life, but certainly when it comes down to business and narrow it down to real estate, I think it's applicable here. You know, as an investor, but even more as an educator of investing, I've always thought that if I could solve this little riddle here, I could make a billion bucks.

And that riddle being is how can a group of, say, 300 people, people sit in a room, 300 people of the same desires and similar goals of being, you know, a successful real estate investors, how can that large group listen to the same instruction from the same instructor have access to all of the same resources and six months later all end up with wildly different results with only a handful actually getting what they came for in the results department. You know, I remember when I was part of the Nouveau-Riche education.

That's where I got started back in, I don't know, was it, 2005, 2004-5, somewhere in there. There were up to 30,000 students enrolled. And we met once per quarter in Arizona, Glendale, Arizona. Giant groups of us would meet and we'd all learn real estate for a week together. We listened to the same instruction from the same instructor, have access to the same resources, have access to the same communities and network. Now, I didn't know all 30,000 people, that's a lot of people. But I did know, I had a pretty good grasp on who the movers and shakers were,

who were the people in Nuvo Reach that were really doing real estate and doing it well. And I got to tell you, there weren't many, but there were some. So is that a testament to the education, Or is that a testament to the people that were listening to the education? You know, because we're here, I guess, approaching a decade since it's Nouveau-Rich's implosion. And I can count on one hand the people that are full-time real estate investors that I know from that community. And two of them work right here in my office. My point being is it's pretty simple to teach real estate investing.

It's not difficult to learn about real estate investing. You know, for example, I can teach anyone how to fill out a purchase agreement. I can teach you how to do that in probably 10 minutes or less. But why that person won't fill out that purchase agreement and present it to sellers each and every day, that's something I haven't figured out how to teach. How to get that person up every single day and create. create a discipline out of that, create a habit out of that, and submit offers every single day. I can teach you how to do it.

But why you don't get up and do it every single day, that's the riddle that I was like, gosh, if I could solve that, everyone within hearing distance of my voice would be a successful real estate investor. So that part, though, that just, I guess it comes from within. And I'm thinking about, I'm coming back around again. to who I was when I was 20. Who was I inside when I was 20 years old? Because I was in the music business. And, you know, I didn't get up with goals.

I didn't get up with forced and conscious habits and disciplines. I mean, we all have disciplines and habits. Some of them are forced and some of them are just natural. And when I was in the music business, it just kind of got up and did my rude thing every day. And 10 years later, I was pretty successful in the music. but what would I tell my my 20-year-old self now? It'd probably be something along the lines of listen to your elders.

That's what I think I would tell my 20-year-old self. Listen to your elders because you don't know shit when you're 20. You just don't. And if you're 20 years old, listen to me right now and you're like, yeah, but I do. No, you don't. You don't. Just listen to your. elders, even if you don't understand what your elders are telling you, even if it makes zero sense

to you at the moment, don't dismiss them as crazy. Don't dismiss them as they just don't get me or they don't understand and then just kind of go on about your business and do it your way anyway. That's what I'd tell my 20 year old self. You don't know shit. Listen to me. Don't ask for advice if you're not going to follow it. And here's what I mean. Your parents were 20 years old once. they know what it's like to be 20 years old. I look at my son. He's five years old. And I can just watch him now as he mills around the house.

I can see the wheels turning in his head. I can see when he's about to do something that he probably knows he shouldn't do. Like, I know what he's thinking before he's thinking it. And the reason I know that is because I was five years old once. And you can apply that same logic to, you know, to the people that have been there before you. Your parents, they were. 20 years old ones. They understand a whole lot more than you think. In fact, they understand just about everything a 20 year old typically goes through because they were 20 years old. So that's what I tell

my 20 year old self. You don't know nothing. So just listen to what people tell you. All right? Listen to what people tell you. My 30 year old self, I'd probably say something along the lines. Now it's time to get serious. You know, develop the daily disciplines that are aligned with your goal. make those disciplines habits and then I think this is the biggie right here accept responsibility for every result you get accept responsibility you know whether your results are good or whether your results are bad whether your results are your fault or not accept responsibility you see when you start blaming somebody for your situation um you know that could be a bad situation. You can, hey, that person cheated me and that's why I'm in this situation I'm in right now.

Or it could be something good. Like, well, gosh, I would have never gotten it if they didn't help me. No, you got to take responsibility for both of those. See, when you blame somebody or something for your situation, you give up control of your life. You have to stay in control. And the only way to do that is to internalize your experiences and take responsibility for your results. you know, in real estate. If a deal goes bad for you, here's the example I could give you for real estate. If a deal goes bad for you, immediately look at how you could have caused a different, more favorable outcome.

Backtrack, where could you have bobbed left instead of weaved right? Where could you have, you know, gone north instead of south, or maybe you could have just kind of turned the steering wheel a little bit this way or you should have said this or shouldn't have said that. You know, look back to where you could have caused it a different outcome. and learn from that and then just move on. Okay. Don't hold a grudge over, say, the wholesaler that swooped in and stole your deal.

You're giving up control if you do that. Think more about what you could have said to the seller up front so that didn't happen. Or how you could have moved faster to get it under contract. Or how you could have moved faster to, excuse me, how you could have moved faster to find a buyer. What could you have done differently to have stopped that wholesaler from stealing that deal from you. And then take that information and learn from it and apply it next time. Look back at where you are to blame. Even if you're not, that's key. Even if you're not, that's key. Got it? So that's what I tell my 30-year-old self. It's time to get serious. And the only

way you're really going to move forward and succeed is by taking responsibility for yourself. Stay in control of your life. That's what I would. to say. Don't give up control. Don't blame others. Don't blame your situation. Just stay in control and do for you. Got it? And then those that want to come along, you can bring it with you, but do for you and take responsibility for your results. Let's see. My 40 year old self, can't believe I can actually tell my 40 year old self something because it was almost seven years ago when I turned 40. You know what I'd tell my 40 year old self? You know, and I look back at 20 years old, as I was just saying, you don't know anything at 20.

And then when you hit 30, you realize you don't know anything. But then when you hit 40, you kind of like, okay, I got this. I think I know a little something now. And so I tell my 40-year-old self to trust your gut, trust your instincts. You're so much smarter and better than you think you are. You're all grown up now. You've got enough life experience under your belt that you can instinctively steer your own trust yourself.

At this age, don't listen to the advice of people that aren't who you want to be, that aren't doing what you want to do, that don't have what you want to have. You know enough. Now all there is just focusing on doing what you know, right? You all know what to do at 40 years old. Now you just got to do more of what you know. A lot of doing. And perhaps now it's time to really start doing, say, to make up for some lost time,

make up some for some past mistakes, or maybe it's time to start doing a lot more to step on the accelerator and just compound on what's on the greatness that you've already built. But it's trust yourself. And don't think so much. Just go forward with what you got

and do what you know. So that's what I'd tell my 20, 30, 40 year old self. And then as I, you know, I kind of came to that realization and I was like, I don't know, maybe I should just share this on the podcast because I think there is something to learn here. at least it really just by hearing someone else have that conversation, it caused me to think about

so many different things in my life. So I want to give that to you. And something else really magical happened, which really was kind of the nail in the coffin that made me decide to record this and talk about this with you today. Is, you know, as I was sitting down at my desk this morning on my Facebook feed, I saw a video. And, you know, you see a thousand videos a day on Facebook. and I've been trying to wean myself off of Facebook more and more and more. I'm getting pretty good at it. So I'm checking in maybe once a day and said like 10 times a day like I used to. But there was a video there of Steve Harvey talking about something very, very similar.

And I think it's probably gone what they call viral. So you might even know what I'm talking about. But I don't know if I saw that picture or that video. I don't know if it was divine intervention for me, if it was divine intervention for you, or maybe divine intervention for someone that you know that you're going to be able to pass this on to. I don't know. But some really good stuff to think about,

some good stuff to internalize and take responsibility for. So like I said, maybe it's for you. Maybe it's for your loved ones. Anyway, what I did is I stripped the audio from that video and I'm going to play it for you. And the content, it applies to every aspect of life. But this is a real estate show. It's a real estate investing show.

So I'm going to request that you listen to this, your real estate ears. And I wanted you to process this through your real estate mind. And just kind of check out what opens up for you. Maybe something in there, it's going to pull something out of you from within that empowers you to start doing more of what you know. Presenting more purchase agreements to sellers, for example. All right?

Enjoy. Here's a mistake that the majority of people that I know make, including myself, I made this mistake. That's why if I can help somebody understand it, but most people I know mess off all of their 20s. From 20 to 29, they just jack it off. They just jack off their 20s. They mess them up, man. Because 20 is that age, man, where you're just really just trying to have too much fun. You're free, you're out of college, you don't live with your mama's house no more, you're out on your

own. So what do we do? Mostly all of us, 98% of the people I know, we spend our 20s trying to exert ourselves in the fun category. We so been, we got to get off work so we can go to happy hour. We got to get off work so we can go get high. We got to get off work so we can go drink a cold one. We got to get off work, go smoke one. We got to go hang out with the fella. We got to play video games. The average person blows all of their 20s. Then when you find out that life ain't waiting on you, now you're 30. Now guess what happens to mostly always, including myself.

I spent all of my 30s trying to do the things that I should have been doing in my 20s. So now my life is behind. Now you look up and you're 40s, you in your 40s, and now you're trying to do the things and have the things that you could have had in your 30s, man, had you just done what you should have did in your 20s? And then the tragedy starts to occur. You look up and you're 50. Now, that don't mean it's too late for you, because it wasn't too late for me.

But you look up in you 50. And now all of a sudden, all through your 50s, you're trying to create and have a life that you could have created and had in your 30s. You're trying to have it in the 50s. My suggestion to all young people, if you could just hear me clearly, don't do what I did. So you look at my life now and you think, oh, Steve, you got it going on. Man, you don't know how hard I made it on myself taking the route that I took.

If I could start over again and change one thing, I would buckle down in my 20s. while you young and energetic alleviate some of that BS that you're so dedicated to the 20s man you dedicated to them girls dudes, their video games, their clubs, them happy hours that smoke, that drink, that freedom. You're so... But in dedicating yourself to that freedom and that fun, man,

you lock yourself out of the American dream. And it happens to 98% of the people. And the reason I know it is because it happened to me. And if I could tell anybody, man, man, if I could do it again, I would have changed where I live my 20s. And if I was in my 30s, you really, in your 30s, it's time out for clubs and drinking and happy hours and parties. In your 30s, you should just be about the business of your life.

Because say what you want to say about me. Every time I hear Steve, man, he's trying to preach to somebody. I'm really just trying to share some valuable information. Because I live all the messed up sides of it, man, flunking out of school, man, losing everything I ever had. Divorces. I'm telling you, man, I did so many things wrong. I made so many mistakes. Homeless living in a car.

I made incredible mistakes. I could have avoided a lot of them. Now, it created who I am. Now, once you've made the mistakes, just get up, man. Quit, don't wallowing them. Because you can recover from all mistakes. But you got to want to recover. You've got to ask for forgiveness.

You got to go to all the people that you crossed and you're wrong and you let down. You got to say, look, I'm sorry. I made a mistake. Forgive me and move on. Now, everybody ain't going to forgive. That's life. God is in the forgiving business. And see, people trip out when I throw God at him.

I'm just telling you, man, the reason I throw God out there is because God is available for everything. I got that. I always want it to be able to. But if you want to be downright hard, co-successful successful, have a little extra money. You got to get busy. Whatever you're doing right now, as hard as you think you're working, you've got to quadruple that. And then when you look up and that ain't working it, like, you know, like, you're doing it. Like here's my father, I always told me this, and I'm going to let y'all go.

He says, son, when you think you've done all you can do, and you can't do no more, do some money. 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. Thanks for listening. We'll see you next time here at Epic Real Estate. investing with Matt Terry O. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.