Epic Real Estate Investing - Smooth Sailing Through the Shifting Market - Just 2 Things To Do | Episode 214

Episode Date: July 25, 2016

For our regular listeners, this may come as no surprise, but the market is shifting.  Prudent real estate investors are tracking these early warning signs and adjusting their strategy in turn.  Are you making changes in your own business to prepare? Today Matt shares the two simple things you should be doing so you will be ready for the coming market shift.  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. Hello, and welcome to Epic Real Estate Investing, the place where I show people how to escape the rat race using real estate. Just shift your focus from making piles of money to making streams of money change, that one thing, just one time, and you are on your race. your way to financial freedom. It is not the most exciting path, but it is the fastest, and once you get there, life then becomes exciting. And speaking of exciting, an additional day has just been added to the Epic Intensive event. Last week, we talked about a one-day event, and now it's two. So coming up September 22nd and 23rd in Pasadena, California, you can go to Epicintensive.com for all the details,

and to seize the Super Early Bird Special, 90% off right now, and just added to that, is one year's free All Access annual Platinum Epic Pro Academy membership for every attendee. So get instant access at the point of purchase for your ticket. That means you go get your ticket right now and boom, you could be right inside of the Epic Pro Academy. And when you take all of that into account,

you've actually got a 95% discount that's going on right this very second. But you're going to want to act fast because, this event is certainly going to sell out and the price of admission is going to go up and up and up the closer that we get to capacity. All righty. So epicintensive.com. And there's going to be a very important event. I could say, I dare say, the most important event of the year.

And if you've yet to do a deal, it could be the most important real estate investing event ever that you've ever attended. And here's why. See, there are plenty of. of people and events out there that are going to teach you how to do deals, but so many fall short on how to actually find deals. And that right there, that's the key to the entire business. It's the skill that pays the most.

The person that controls the deal controls their business and controls other people's businesses as well. And when you control other people's businesses, you get paid very well. You know, as the market is shifting, what's been working the last few years is not going to work like it did in the next few years. I mean, knowing how to find deals in this shifting market, it's vital to your future as a real estate investor. And I'm going to show you exactly how, because I know you don't want to be left behind.

So epicintensive.com. And here's why this event is so important. I'm going to stop promotion right now. I'm not promoting the event. I want to talk to you straight. I'm going to give you something really special to consider today. It just kind of goes hand in hand with the event. So listen to this.

As we come out of this market, I mean, this market that we've come out of the last decade, last nine years or so, it's really unprecedented. And during this period, we've experienced more defaults and foreclosures than ever. And we all got accustomed to this low-hanging fruit. We got accustomed to buying houses at a discount and doing it without any real extraordinary effort. Sure, still work. It's still difficult. It still takes something to make this business work. It's always been tough work.

But it hasn't taken extraordinary work. It's always tough. And I'm very comfortable in saying that more people did work. well in real estate in the last several years than ever before. But as the market shifts, so shifting is your cheese, if you know what I mean. I mean, have you ever read the book, Who Moved My Cheese? Great book. Nice, short little read.

Very valuable book, especially the timing right now couldn't be more fitting. It's about these mice that take on this maze on a daily basis. And at the end of the maze, there was their cheese. their reward for successfully navigating the maze. Then one day the scientists, they decided to move their cheese to a different place in the maze, a different part of the maze.

And so the mice woke up like they did every day, and they started making their way through the maze as they had done every day. They'd done that way for years. And to their surprise, when they got to the finish of the maze, there was no cheese there. And they went hungry for the day.

Then the next day they woke up, bellies rumbling, they're really hungry. And again, they made their way through the maze, as they had always done. And what do you know? Again, no cheese. They went hungry again. And they kept on doing this. And I know some of them did not survive the experiment because they kept going through the maze the exact same way to find no cheese there. Now, I actually forgot how the story actually ends.

It was a long time ago when I read the book. But the point being, the cheese was still in the maze, just as much cheese as there ever was. It was still in the maze. It's just that it was moved to a different area of the maze. And those mice that didn't figure it out, they starved. And those that did figure it out, they got fat. The point here, as you may be starting to read it,

recognize in your own real estate business. I've been hearing this from multiple sources, from multiple areas of the country. You know, what's been working the last several years is becoming a little less effective, isn't it? No worries, though. The cheese is still there. It's still in your maze. It's just being moved around in the maze. It's somewhere else. And that's why the Epic Intensive is going to be a very important event for real estate investors to attend, because that's what my team and I are going to cover. Where has the cheese gone? Where is it moving?

And how do we make sure that we get a piece? Listen, if you're sole strategy for doing deals consists of submitting low ball all-cash offers in the interest of making a quick flip type sale to another investor, this new market, it's going to eat you up, it's going to be really tough for you. I mean, sure, the quick flip strategy, it'll work again.

And I likely won't completely disappear. it'll still work. It's not going to completely disappear. I highly doubt that. But the bulk of money and profit is moving. I mean, here's a perfect example. When I joined my mastermind group about, I don't know what, three years ago, almost four years ago now,

I was a part of a very small minority of members in that group whose focus it was to actually hold property. There weren't too many of us in there that would say, you know, I've got 50 units, I got 100 units, I've got 200 units. Not many people in their whole property. A lot of them are flippers and wholesalers and they all do extremely well. I was a very small fish in that pond.

That's how well that they all did. And so this week, this past week, I'd say the last two weeks, within the last two weeks, probably the last 10, 11 days. I've received phone calls from three different members whose entire business is based on flipping properties. They called me up to ask me quite. about holding properties, to ask me about multifamily properties, about how do I manage so many single family properties.

Now, I'll be clear in saying, I wouldn't mind switching my business with their business right now. As all three of them are much bigger fish than I, they've got gigantic operations. And I guess that's what surprised me so much when they called. Because I look up to them. I aspire to have a business that runs as efficiently. as profitably and as lucratively as theirs. I call them for advice. They've been in business longer

and they've absolutely crushed it. But just recently, their conversation, what they think about on a daily basis that's going on in their head, that little voice, starting to shift a bit, starting to talk a different language. That conversation is shifting as the market is shifting.

Say, hey, Matt, tell me a little bit more about how you've been able to acquire and hold all of those properties. How are you managing those properties? How does that work? How can I build something really quickly like you've done? Again, if they offer to switch businesses with me right now, I'd probably do it in a heartbeat in most cases.

And I say that to show you that I'm not gloating about how they're now asking me for advice. And I'm not sitting up here saying, I told you so not by any means. I'm sharing this with you merely to point out that things in the marketplace are moving around a bit, that cheese is moving. And remember, I mean, for months now, I've been telling you this, right? In fact, I think I spoke of this even, I don't know, probably is a year ago. I mean, the advice was, listen to the conversations of the people around you. Listen to the news.

Watch what you're reading. Listen to watch. One of the specific things I talked about was watch your infomercials, watch TV. when you start seeing a real pickup in real estate investing education, something's up. So listen to those conversations, whether that be the guru on TV, whether that be experienced investors who have nothing to sell, or your local butcher. I don't know. Do people even have butchers anymore?

I don't know. What I mean are just everyday people. When I say butcher, I mean everyday people. Your neighborhood bartender. You know, if you hear him talking about flipping a house or your experienced investor friends might be singing a little bit of a different tune as they start to consider to prepare for a different real estate environment. You know, if you're new to the business, and I mean within the last, I don't know, four or five

years and you've built your business solely on or almost solely on wholesaling, education, the right education is going to be more important for you right now than it probably ever has been. Because you might have, you know, grown up in this business knowing how to do one thing and that one thing worked really well for a really long time. And you might think you're really good and you might be really confident about what you're doing. That's why the right education at this moment is going to be probably more important now than it

was when you first got into the business. Because I tell you, speaking from someone from experience, it is terrible. to have had money and lost it and then have to rebuild it. That's what the music business did to me. I built this little music empire and this digital download thing came along and just wiped me out. I went from a seven figure year to bagging groceries for $7 an hour. I don't want anyone to experience that.

It was a very painful experience, a very emotionally draining experience. So the right education at this moment, it could be more important right now than the initial education you got to build your business and get you where you are right now. So it could be in your best interest in moving from this disposition of, I don't know, being a hustler, a mover and a shaker, you know, when things are going well, we're making good money, we're doing well, we can get a little arrogant, little cocky, you know, we've got, we're a mover, we're shaker, we're a fast talker, we're working high volume of low profit deals. We're just kind of turning and burning these things. And there's nothing wrong with this, by the way, nothing at all. I mean, I wish I had a little bit

more of that in me. I admire the hustlers out there, the get it done peeps, as this last decade has been a great environment for that personality or that character type. And that person, they'll typically always fare well, really. But that same hustle with that same mindset, that same strategy and that same knowledge base, they're going to feel the shift. Might be just a bump in the road, or it might be rather painful. Whatever it is, though, they're going to feel it. And the way to sail through it on the smoothest seas as possible. And you've got time, by the way. I don't believe we're going to wake up tomorrow

and the sky is falling, so I'm not trying to scare you. I just want you to be prepared. But the way to sail through this really smoothly is, one, you've got to stay focused on education. And two, you've got to really watch and control your environment. You got to keep educating yourself. And if you're a wholesale master, God bless you.

I love that. and now that you are, consider broadening the horizons a bit and start thinking about mastering an additional real estate investing skill. So education and environment, be intentional about who you're spending your time with. Look for the doers. Look for the forward thinkers. Look for those that are succeeding. Look for those that are leading the life that you'd like to be leading.

And you want to create relationships. and you want to create tight relationships and you want to create mutually beneficial relationships. It's got to be really nice relationships of give and take, give and take, share and share like. Look for mastermind groups. Look for meetup groups. Look for gatherings of like minds of people that are doing what it is that you want to be doing.

And there's a solid reason or reasons as to why. Why this is going to have such a positive impact on your future and your present. One, we're in the information age, right? I mean, the amount of information produced on a daily basis is growing exponentially. Today, our best estimates suggest that at least 2.5 quintillion bytes of data is produced every day. 2.5 quintillion. I don't even know what a quintillion is. So I had to look it up.

That's 2.5 followed by 18.0. That's a lot, right? That many bytes of data produced every single day. I mean, that's everything from the data collected by the Curiosity rover on Mars to your Facebook photos from your latest vacation. We could never possibly keep up with it all, ever. Not all of it, not by any means. But you can do your best to stay up to speed with what's going on in your business and

your industry. Never stop educating yourself. stay ready so you don't have to get ready to environment now here's why I'm such a big proponent of associating with the right people the right groups of people

is that it has to do with the way that human beings are wired you know we're all influenced by our surroundings so much that it almost creates who we are without us even knowing it I mean a simple example of this would be you know think back when you're in high school you know that group that you spent the most of your time with even if it was small groups as a couple friends or maybe it was a giant you were part of this giant click you're one of the

jocks and we can all think of a time when we did something stupid right or at least something that we regret that we knew wasn't really us and we did it because of everyone else was doing it or we did it because of peer pressure or we wanted to be liked so we did that or we did it because we didn't want to be different or we wanted to do it impress somebody. We did something stupid that we regret. Now, this is a rather negative twist on, on, you know, looking at groups and focusing, you know, by focusing on something that you regret. But it goes both ways. That's the, and that's the thing you need to understand. It goes both ways. And the reason I pointed out that way, because most of us can think back in high school

rather easily and go, yeah, I was kind of an idiot when I did that. And I only did it because my buddies did it. And I regret doing it. We can all kind of have that relation or that, yeah, that relation to that experience somewhere. That's just to point out the power. of it, but it goes both ways. Once you recognize the power, you can turn around and use it for good as well. You know, so if you were to change the group that you spent your time with, people doing good things, people doing great things, people succeeding, people making money, all of that stuff, that all rubs off too.

Not just, you know, the smoking pot and ditching school crowd, that stuff rubs off too, but all the good stuff will rub off on you as well as well if you're in the right group. I mean, if you're amongst a group of friends and you're, you know, you're, you know, you're you look up one day and notice that you're the only one amongst that group that didn't close a deal this month, your wiring, your internal wiring is not going to stand for it. And you best be sure, you're a human machinery, that's going to kick in and it's going to get a deal done, really in spite of you. That's just what the right environment will do to you. And if your group is experiencing consistent results, you're going to get consistent results too.

And it happens in many different ways, I mean, for many different reasons. Like, you know, you have like thoughts. And if you all have like thoughts, that's going to produce like actions. And like actions are going to produce like results. And those actions done over time, they become habits and blah, blah, blah, blah, right?

So the thoughts, if you're in a group that's sharing a common thought, then you're going to produce common actions. And then access to like resources. You're in the right group. You're all going to have access to the right resources. You're going to have access to the right technology, the right strategy, the right tips and tricks, the right access to like information. Access to like people, those connections.

You can be introduced to people that can really give you a hand up in your business. And some of those things are tangible and some are intangible. But if you are intentional about the people that you connect with, the people that you spend your time with, here's the great thing, the way that this works is you don't really have to think about it too much. It's just going to happen. You just got to stay engaged and be intentional about who you are investing your time with. It's just going to happen for you. Your human wiring won't allow anything different.

All righty. So stay educated and stay connected. You know, whether you decide to join me at the Epic Intensive or not, don't let our time here today go to waste. Don't get all cynical and resigned on me thinking today's episode was a big giant commercial for the Epic Intensive. You should know me by now. That's not my style. I mean, ignore the event altogether if you want and walk away from today's episode with these two points. Seek education, always.

And create your environment. Always. Do these two things always. And you won't have to worry so much about the shifting market. Now, if you'd like to join my team and I at the Epic Intensive, you'll want to know that this event is designed around these two points. principles specifically, education and environment. So here, I'll go ahead and I'll break down the day-to-day details for you. We're going to begin Thursday morning, September 22nd at 9 a.m., and we're going to go to work

on a specific customized plan of attack just for you in your market. And we're going to go over the exact simple steps to carry out each day to assure the achievement of your goals. All right? Then we're going to go over the five most effective strategies for finding deals in today's market. As I've been saying for a while now, the market, it's shifting, right? Which means the low-hanging fruit has shifted as well. And I'll show you exactly where to find it and more. Right. And we'll go ahead. We'll break for lunch. And then we'll reconvene in the afternoon

to go over five different creative ways to acquire properties. Because face it, if your only strategy right now is a low ball, all-cash offer to get your deals under contract, this shifting market is going to eat you up. I'm not going to let that happen to you, not if I can help it. And then we'll wrap up the day with how to systematically create a bidding war for your deals. A bidding war. I mean, whether that's buyers bidding for your deals or investors or tenants or lenders, I'm going to show you how to get them all fighting for the privilege to work with you. And then we'll go ahead and we'll get a fresh start Friday morning on how to virtually

eliminate the risk from your real estate investing. And then, this is everybody's favorite. How to access and use other people's money to close your deals to create win-win transactions for everyone involved. And then finally, we'll go ahead and we'll wrap up the day with how to delegate and automate all of those mundane activities so that your business not only runs smoother but produces results faster and more consistently and leaving you with less time doing what you have to do and more time to do what you want to do.

Any and all. If you'd like to attend the Epic Intensive on September 22nd, 23rd, go to Epicintensive. dot com right now. Take advantage of the super early bird pricing. That's 95% off because it includes the Epic Pro Academy membership one year's worth and more details and more announcements to come. But go ahead and reserve your spot at the special 95% off price. It's not going to be available for much longer. Epicintensive.com. All righty. So until next week, to your success, I'm Matt Terrio, living the dream. 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 Terrio. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.