Epic Real Estate Investing - Step By Step to Get Out of The Rate Race & Create Passive Income Part 3 | 715

Episode Date: July 16, 2019

In the 3rd part of the series, Mercedes reveals why you should use real estate as a vehicle to reach financial freedom. Learn why RE is the most dependable investment and the 5 additional benefits it provides. 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, brought to you by Epic Real Estate Investing. My name is Mercedes Torres and I am lucky enough to be partners in crime with Mr. Matt Terrio, the guy who created the epic real estate empire. This is a real estate investee show for busy people. Busy people just like you who understand the importance of real estate just don't have the time or the desire to learn every single nuance yourself.

You want to get involved in real estate investing? Well, I will help you get involved without having to do all the heavy lifting. If this is your first time here, so glad you made it. Make yourself at home. And for my old listeners, our constant followers, welcome back, my friends. Good to see you again. So this week, I am going to jump right into it because we are resuming our multi-part series, a step-by-step plan to escape the rat race, or better yet, if you go to our website, I simply call it the frustrated investors' guide to passive income, which you can download yourself if you go to cashflow savvy.com, that's savvy with two bees.

And, you know, we just got started with this series about two turnkey Tuesdays ago. So that was episode 701. and if you're just tuning in now, I'd suggest that you go back to episode number 701. It'll just take you a couple Tuesdays back, so to speak, just so we can get started. And that way you won't be off track, if you will. So, so far, we've covered in a very broad sense. And then we got down to the very detailed way, the most dependable road to finance, freedom. That being the pursuit and management of passive income. Specifically, why you don't have a chance

of any sort of financial freedom unless you figure out that part first. Now, last week, we left off with the question and now we are going to figure out the road. Which vehicle should we use? to travel the road to reach financial freedom. So imagine this. It's late night. You're at your computer. It's just you, the computer, quietness. Maybe, you know, the rest of the family is sleeping.

You've got CNN money in the background on TV or who knows. Maybe you've got the infomercials running. You're half listening to the TV and half searching through Google, looking for a viable means to generate passive income for yourself and your family. I don't know about you, but I've done this before many, many times before I knew about real estate and passive income. I was on the search at midnight. I was all about infomercials. I was hungry to learn the next thing, or I was looking for that vehicle to help me create additional. streams of income in my life. So maybe you do the same things. And you're seeing articles about

dividend yielding stocks and articles on how to get started an online business and Abundson business, perhaps, an eBay business, or some on real estate, real estate investing. And you're looking at others who are getting rich on vending machines or coin operated laundromats. And let's be real. all of this is making you feel overwhelmed. It is an overwhelming feeling. At least it certainly was for me. And if you get this part wrong, you can blow a lot of time.

Because let's face it, many of us feel as if we are running out of time. And wasting the little extra time that you do have, you can run through your savings before the ROI ever begins to kick in. And it doesn't take long before it starts to cause tensioning your world. Tension for yourself, perhaps tension between you and your spouse. And you start to wonder if you're ever actually going to figure out how to create passive income. and the underlying fear is that you really could be enslaved to your job forever.

All you really want is to know which vehicle is going to get you to where you want to go and get you there in time that you want to get there. And you prefer to start receiving on your investment right away. Or at the very least, you want to. some results, some tangible results in a relatively short period of time that you can measure. I mean, everyone wants to see results for their efforts, giving you the confidence to stay the course knowing that the streams of passive income are in your eminent future so that you can eventually take your foot off the gas a little bit and ultimately entirely.

there are many passive income vehicles that you can choose from. Number one, royalties. Number two, business ownership, and number three, dividends. A few examples I'm going to use is rental income from properties that other people manage and repairs. Then you have royalties from books and music or other creative works. income from businesses you own, but you don't necessarily operate. Then you've got vending machines or laundromats and arcade games and other very hands-off enterprises with one or two employees that you can depend on to run your operation.

You've got the peer-to-peer lending, perhaps, and you also can consider dividends from stocks and other income-oriented market investments. Mercedes, don't be silly. I know what you're thinking. Nobody plays arcade games anymore. Well, true, but there are still arcades out there. Few, but they're out there. And those little machines produce a great little stream of income

that you don't necessarily have to do a whole lot to develop. Anyway, back to the original. point. If you have, let's say, $2 million laying around and you invest in stocks with a 4% dividend payout, if you're lucky, you'll make a cool $80,000 per year in passive income. If your name, Stevie Wonder, for example, your song called, I just called to say I love you, will certainly keep passive income rolling in every month. And if you're the guy that created Facebook or Napster, if you will, that roaring river of income isn't going to stop anytime soon. And if you're Jennifer Lopez, at the age of 60, you are surely still going to be collecting royalties for a whole lot of

stuff, music, TV shows, fashion. I think you get the point now, right? So for me, Real estate is my primary passive income vehicle. And I didn't choose it solely due to my flagrant lack of voice or piano skills. There are more compelling reasons than just those. But because I've built my financial freedom through real estate doesn't mean I'm against other avenues that I've mentioned before. Everything I've mentioned are actual vehicles for creating self-sustaining wealth. passive income and freedom. Now, they all have their own timelines, of course. Some, an element of timing, and other carries their own set of risk. I mean, every investment and strategy certainly

has its sets of risk. But sooner or later, with focus, effort, and patience, they'll all get the job done. I've even dabbled in a few myself, but real estate is always going to be my first choice for a number of reasons. And if I were to start from scratch today, which is a question that I get asked all the time, I would still choose real estate investing to begin and to continue to create passive income. But I always get the question, real estate isn't passive income. Mercedes, is it? Yeah, you have to buy a house and fix it and manage it. It takes work. I get that. I get that question all of the time. And I'll address that shortly. But let's look at why I choose this vehicle as passive income for me and my family. Overall, it's the most dependable vehicle.

And here's why. Number one, it fulfills one of man's basic needs, the need for shelter. It is the most important bill of the month, the one that gets paid first, the one that parents lose sleep over if they can't make the rent. And unless the need for a roof over your head somehow goes out of fashion, then passive income derived from this need will provide a sustainable passive income for you, not only for you, but for the future and for your generations to come. Number two, the demand for shelter is not only in place for a foreseeable future, the demand is

growing. Just look at our population. Just look at what our population is doing on a daily basis. Number three, each generation is bigger than the previous one. I mean, really, think about this. The millennials who are just entering into the buying home age of their lives are the largest cohort in history. And don't forget the baby boomers, because they're still healthy, they're still walking the earth, and they're expected to live an extra decade longer than what's a really. originally anticipated. And the babies that were born in 2009 was the record year of most babies being born. And it won't be long before they start to seek shelter for themselves on their own. You know what they call that? They call that a crystal ball. Demand for housing is here to stay. and it will be growing long after you've created this wealth and passed the baton along.

With built in demand like this, my friends, there's no better investment or business to be in. Let's be real. Unlike dividend yielding stocks and bonds, real estate is really controllable. One of my most favorite aspects of real estate is that you have control. It's real. You are in the driver's seat. It's not just a number floating by in cyberspace. It's tangible. It's physical. And it could be altered or improved instantly by me. In this case, by you. I can improve the income. I can improve the property. I can change it. I can add an extra room. I can add an extra bathroom. I can force appreciation on real estate. Try doing that with a stock or a bond that you may have. Try doing that with your 401k that you currently have with your employer. Think about it. With real estate, you're at the wheel and you are free to steer in any direction that you will.

And if that isn't enough, let's quickly look at five additional reasons. Real estate is the most dependable vehicle to travel the passive income road. Five additional benefits of real estate that very few of the aforementioned passive income alternatives can offer. And none of them offer all of the benefits like real estate does. This, in my opinion, makes real estate the idea of vehicle to drive to financial freedom. So let's dive into them. I said five. Number one, inflation. Over the years, inflation and property values have run neck and neck with real estate edging out inflection by a nose.

Number two, deductions. Most of the training has been about passive income, of which real estate does really, really well. But the powerful expense reducer in real estate is often overlooked. And the biggest suspense of life is taxes. Deductions are all about deducting the taxes that you, You were paying. Number three, equity. The difference between what you owe on the property and what the property is worth. And equity, ladies and gentlemen, can be purchased like buying a property at a discount or by collecting income from properties that are being paid down by your tenants. And you can gain equity through number four, appreciation. And appreciation can be forced on a property through improving it or changing its use,

increasing its income, or decreasing the operating expenses. And appreciation can just happen, as it will. You know, per a crystal ball of demand that I mentioned earlier, the demand for housing. Now, let's be real. There is really no crystal ball to determine if your property is going to appreciate, but we can't refer to history as history tends to repeat itself. And chances are the property will appreciate. Last but not least, number five, leverage. The fifth additional reason that makes real estate the most dependable vehicle is leverage. And I'm going to cover this in great detail in just a minute, and it's not what you think. Okay, if at this point

there's any doubt left in your mind about real estate being the most dependable vehicle for passive income and overall wealth, remember the stats from the Department of Health and Human Services I shared the last episode. And I'll refresh your memory since it's been a week, the one percenters. If you focus on the one percenters of our nation, that one percent of the wealthiest people in the country that I refer to them. If we look at that one percent and what's the people, they did to get there, you'll see that 74% of the 1% either made their money or parked their money in real estate. Real estate has created more multi-millionaires than any other industry or investment vehicle. It has safely delivered more people to the doorstep of financial freedom than anything

else. By default, just looking at numbers, the history and stats, the statistics, real estate is the most dependable vehicle that produces passive income. Now, now you know why it is the most dependable vehicle and how you see more people become millionaires over anything else, any other passive income vehicle, but enough about those people, they're not what's important here. Really, it's not about the millionaires. It's about you. What's more important is finding a passive income vehicle for you. And if you were invested deeper in real estate, just think about what kind of impact that would have on you? What kind of impact can passive income through real estate provide for your family? I mean, how would it make you feel? What would your financial future be like?

If you think about all the times that you've toyed with other passive income investments or ideas, how much has it cost you? And how much time have you really wasted on searching for that vehicle. Again, my friends, my job on this show is to help you make decisions to get your wheels turning, as I often say, and to help you make decisions so that they can make a difference in your financial future. Do you resume what you've been doing? Or do you commit to real estate as a financial freedom vehicle for you? So what's it going to be, my friend? Are you going to continue doing things the old way, trying to figure it out, wasting time, or potentially dive into a new way and finding the way to create passive income through real estate for you.

What will it be like if you incorporated passive income through real estate in your world? The new way, right? As passive income through real estate that presents the highest likelihood of you exiting the rat race. After all, it is the final frontier where the average person has a legitimate shot at creating epic wealth. You hear Matt and I say this all the time,

and we repeat this because it's true. If Matt and I can do it, you can do it too. So passive income is the only road to getting you there. And real estate, I feel, is the most dependable vehicle to travel that road. What else do you need? You need fuel, right? So, what does that mean? What would sound better?

Diesel fuel? Unleaded fuel? Premium? How about rocket fuel? You need the type of fuel that will get you to your end of fuel. destination faster and easier than anything else that you've encountered. So ladies and gentlemen, we are going to cover what that rocket fuel is next week. I know, I know. I don't want to drag it on and I am going to make you wait,

but I really think that you need to take in what I shared about passive income through real estate and really embracing how that can make a difference for your financial future. However, if you would rather not wait until next week, feel free to go on to our website, cashflowsavvy.com, that's savvy with two fees, and download the frustrated investor guide to passive income. Or if you want to take action right away, go to passiveincome audit.com and schedule a call with one of our passive income experts or myself, just request me, and I will be happy to hop on the call with you and help you make an educated decision for yourself and your financial freedom. That's passive income audit.com or go to cashflow savvy.com. That's savvy with

two bees, download the frustrated investors guide to passive income. And my friends, That is it for today. I will see you next week on another episode of Turnkey Tuesday, where cash flow is king. Have an epic day, my friends. 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

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 cashflowsavvy.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.