Epic Real Estate Investing - Teach Your Child Passive Income by Creating It Yourself | 1128

Episode Date: March 2, 2021

Did you know that the US dollar has lost 94% of its value since 1913? This fact sounds terrifying and it is the reason why wealthy people don’t work for money, yet create passive income! Unfortunately, they do not teach us this in school, but Mercedes, the Turnkey Girl DOES! Tune in and find out how you can teach your child passive income so they grasp the right money mindset from the earliest age.   If you have children, you don’t want to miss this valuable lesson from parenting and upbringing! 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, your turnkey girl, and I am lucky enough to be partners in crime with Mr. Matt Terrio, the guy who created the epic real estate empire.

I teach busy professionals how to create passive income through real estate investing so you don't have to work so hard and maybe even retire sooner. So I created this show to share tips and advice and real life real estate experiences so that you too can create passive income in your world. So if this is the first time that you are hearing us, so glad you made it. Make yourself at home. If this is not your first time here,

welcome back, my friend. So I am super intrigued by the manner in which stimulus packages are being created nowadays out of thin air. Now, my statement may come across a bit naive. because, yes, I know that stimulus packages are not coming out of thin air. I'll give you that. But I know on a more intricate level that the stimulus packages are being created at a cost. They come at a cost to something. It's no secret our country is in massive debt.

In fact, the national deficit, it's the highest it's ever been in our history. according to an article on visual capitalists published October 30th of 2020, our country was $27 trillion in debt and growing. And yet, as these packages are being created, the country is getting more and more in debt as we speak. So I did some digging, and I learned that the U.S. dollar has lost 94% of its value since 1913. Let me say that again. The U.S. dollar has lost 94% of its value. I found that to be utterly terrifying. I mean, if you think about it, this is why the wealthy think differently about money and why they often say, They never work for money because it doesn't hold any value.

But wait, there's more. Because paychecks, you know, that paycheck that you work for every single day from 9 to 5, that doesn't get you very far either. This is why I call it the proverbial rat race. I mean, Robert Kiyosaki calls it the rat race. I call it the proverbial rat race. The poor and the middle class, they work for dollars that on a daily basis their dollar is weakening, meaning their paycheck is weakening too. I argue that this whole situation is the true damage that school does to us.

Now, let me be clear, I am not knocking education. In fact, I am a huge fan of education. But I'm sure that you've heard this from your parents and even from some school teachers that you go to school, you get good grades, and you get a good job. But in today's world, a four-year college graduate graduates college with an average of about $50,000 in debt to only get a job that pays them $30,000. year. I mean, don't you think there's something wrong with this picture? As Kiyosaki would say, school teaches us how to be employees. And employees are working for a dying dollar. School doesn't teach us how to create assets. They don't teach you how to create passive income.

School didn't even teach me how to manage my checkbook. I watched my mom balancing her checkbook on her Bank of America ledger with a number two pencil and an eraser. And I grew up poor. I mean, the struggle was real in our house. My father was a welder. My mother was a housewife. And they had four daughters. So that was poor. And the person who taught me how to manage my checkbook was my mother. So how does one learn about passive income? How do you teach someone? How do you teach someone? How to create passive income that will pay you money consecutively without having to get up every morning to punch into a time clock at 8 a.m., punch out at 5 p.m., going to work every single day. So I will share with you one thing that's working with my son. I have a 9-year-old son. His name is

Mateo. And my son, very similar to his father, like father like son, right? Dad has, obsession with three things. Only three things. One is sunglasses, number two is wine, and number three are Nike shoes. Well, unfortunately, my nine-year-old son picked up dad's bad habit of loving Nike shoes. Now, I don't know about you, moms and dads, but I have a huge issue with paying $80 for a pair of tennis shoes that my nuns. My year old is going to grow out of in about four to six weeks. Now, this is a real problem, and I've narrowed it down to the kid fits in a pair of shoes for six weeks. So I do the typical thing is I buy a size bigger. You know, I try to do that. And it doesn't always work, but whatever, the kid is growing. So when he came to me and said he wanted the next pair of Air Jordans, I said to him, okay, Mateo, what are you going to do to earn a pair of Air Jordans? So, when he came to me and said, he wanted the next pair of Air Jordans, I said to him, okay, Mattiore. What are you going to do to do? What job can you create at the tender age of nine to create enough money so that you can buy the pair of Air Jordans? And I even struck him a deal.

I said, if you want an $80 pair of shoes, you need to prove to me that you can create $40 and I will pitch in the other $40. So he was thinking and thinking and he came up with a few chores, but I planted the seed of eBay. So I did this for a number of reasons. Number one, he does wear his shoes out. And, you know, let me just say, these are Air Jordan. So he does some wearing out in about six weeks. But enough to wear if you throw them in the washer and clean them up a bit, you could still sell them. So he started his own eBay business.

I created an account for him. And I taught him how to clean the shoes, how to throw them in the washer if they're washable, or how to take 409 and a washcloth and clean around them. And I taught him how to take pictures. I taught him how to upload all of the photos that he's just taken onto eBay. And then I taught him how to create a description that would sell his shoots. The goal was to have him do all of this to show him that to make this dog, work goes into it. So there was a method to my madness and this wasn't teaching him passive income

just yet. But I taught him how to do everything and I put the incentive in place as I will match whatever it is that you raise. So we started a bidding war, much like my real estate. I priced my property super low. I also priced his shoes super low so that it starts a bidding war. So we started a bidding war. more. And we've gotten so good at it that Mateo recuperates up to almost 42% of the cost of the shoe. Now, of course, I do some cleaning up and mom does a little bit of making the shoe look really pretty. But the point is that the kid has started his own little Nike business at the age of nine. And I not only taught him how to do it himself, I've taught him the value of you have to put a little bit into it to get a little bit more out of it. True story. So if you ever see my shoes on eBay,

you better bid top dollar. Mateo also gets paid for taking out the trash and replacing the sparklets drinking water at home. We have that big five gallon water. And so he gets $5 a week for doing that. Trash comes by on Friday. And so he started, his wheel started to turn. And I said, well, you know, what could you do to multiply the $5 a week that I'm paying you? And he says, well, what if I offered my services to Mr. Ramsey? Mr. Ramsey is our across-the-street neighbor. So he went across the street and offered his services to Mr. Ramsey. So, Mateo, on Friday morning, now goes to Mr. Ramsey's house.

Oh, but Mr. Ramsey spread the news to our neighbor next door. and now our neighbor next door also partakes in the privileges of not having to take out the trash because my son now does it for $5. So on Friday mornings before he goes to work, Mateo takes out my trash, takes out the trash of the neighbor across the street, and takes out the trash of the neighbor next door. Now, the kid makes $15 a week to pay for his own video games and to contribute to the amount of money he can invest in his Nike shoes. And he's seeing the difference in having to wake up every Friday morning 15 minutes earlier from every other day that he has to wake up because before school

on Fridays, he has to take out the trash. And then after school, when he comes home, he can't run inside the house to get his snack like he usually does. He has to take the time to put all three trash. can bins away. And by the way, it's three bins per house. So he used to put away nine bins for his $15 a week. Now, I've been able to teach this to him and have a point of comparison because when Mateo was born, we bought him a house. Now, I've shared this before on previous podcast. I had Mateo when I was 40 years old. And even at 40, I wasn't ready to have a kid. He was my first child. He's an only child. But I wasn't ready. So I was freaked out just like every new parent. And I freaked out at the fact that the cost of tuition was going up. I did say education was

important. And I thought, well, if Mateo wants to go to a four-year college, what's tuition going to be like in 18 years and how can I prepare myself to pay this astronomical tuition when he goes to college in 18 years. So Matt and I decided to buy a house for him to pay for his college tuition. And the whole purpose of this house was to buy the house, keep it as a rental. And at the age of 18, we could sell it or refinance it or whatever we chose to do. but it was a buy and hold play for Mateo's education. Well, we bought a property in a really good neighborhood where we cash flowed the entire time.

And in five years, that property appreciated enough that I was able to do a refinance to buy a second house. So that first house that was purchased when Mateo was born at the age of five, became two houses. Well, Mateo's going to be 10 in July. And in July, he is going to have three houses because I am in the middle of refinancing the second house because it has about $30,000 in equity. And with that $30,000, I'm buying another house. Now, he doesn't get this money like he does with his eBay or like he does for taking out the neighbor's trash. But I taught him how to download his rent rolls.

He gets to see it. And I've taught him how to compare his rent rolls with the amount that's being deposited into his bank account. Now, Mattel's only nine years old. So he sees the numbers. He doesn't quite grasp that, yes, it's money that he's going to be able to collect on, you know, when he's eight. but he does understand kind of what's happening as far as he's now got two and a half houses. Third one hasn't been purchased yet, but he sees how much it's paying him and he's able to compare the $200 a month in passive income per property versus the $20 that he's getting on his Nikes that he's

selling on eBay or the $15 that he's making a week. for taking out the trash. Now, the houses are in his name, the bank account is in his name, and I'm teaching him on a very basic level how to balance it. So by the time Mateo is 16 years old, he should have, I would say,

four to five houses and will be able to run them on his own. Now, the houses are in a trust, I oversee everything, I pretty much do everything for him, but I'm teaching him real time. So every 10th of the month on that weekend, we sit down for about an hour or so, maybe even less, so that he can see me overseeing his portfolio.

But more importantly, he gets to see and live the comparison of active income that he has to work for and passive income where we did the work once. Now, kids learn by watching, and if you set the example, the kids will replicate it. Now, if you're like me where you didn't have that option because you grew up with limited means, you, as a parent, has the opportunity to change it for your child. It's not rocket science. It's super doable. And it starts with small actions. So maybe it's not an eBay business or maybe it's mowing the lawn for the neighbors. But it's something that you have to teach your little ones so that they're able to have a point of comparison. Trust me, they're not going to learn passive income in school, not an elementary school, not in middle school, not in how.

high school. They're probably not even going to be taught how to balance a tech book. So mom and dad, it's up to you. And think about what will happen. If you start by buying one property, just like I did for Mateo, one property for the family or for your child, because with that one property, teaching them how to download a rent road, teaching them how to put aside a certain percentage for taxes, for insurance, for a rainy day, and for maintenance, will teach a child more than school will ever teach them. As Henry Ford puts it, if you think you can or you think that you can't, you're right. That's it for today. If you like this episode, please give us a review. And more importantly, share this episode with a friend that has children to create a brighter future.

Because my friend, it is up to you and I to make a different in our children's life. And if you want our help to help you create passive income, I will be happy to guide you. Feel free to go to cashflow savvy.com. That's savvy with two Vs. click on the contact me or download the free guide to passive income. There is a step-by-step process on how to create passive income in your world. My name is Mercedes-Torres, the turnkey girl, and I am wishing you an epic week. Do you have doubts about your current plan for retirement actually panning out?

Imagine revolutionizing your retirement plan so it pays you right now. and in retirement. Change one thing, one time, and that revolution can be yours. 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 one simple tweak can cause your retirement plan to pay you right now and in retirement, and it's yours for free. For the secret your financial planner doesn't want you to know, go to cashflowsabby.com.

That's cashflowsavvy.com. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.