Epic Real Estate Investing - The Best Market for Real Estate Investing - Epic Wealth Wednesday | 275

Episode Date: June 21, 2017

Epic Wealth Wednesday shares the unfair advantage that will allow you to get rich permanently. Start with leveraging your resources and raising capital through creative financing. Then attract investment opportunity and structure deals that will provide you infinite ROI. Building long-term wealth through passive income cash flow investments starts here. Listen!   ______   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. It ain't what you don't know that gets you into trouble. It's what you know for sure. That just ain't so. You don't have a money problem. You have an idea problem. Welcome to the Final Frontier, where the average person has a legitimate shot at creating...

Epic. Well, your host, Matt Terrio. Yes. Hello and welcome. Welcome to the Creating Epic Wealth Show, the revolutionary new money show, disguised as a real estate show. As real estate is the final frontier where the average person has a legitimate shot at creating epic wealth. I mean, you really just don't have a chance at any sort of financial freedom unless you incorporate real estate into your financial plan. And if you just don't have the time to do it, nor the desire to take on all of the heavy lifting,

then this is just the show for you. Glad you found us. So last episode, we discussed the mindset of the wealthy, how they think about money, and that their focus is on purchasing assets, cash flowing assets specifically, with real estate being the most simple, straightforward cash flowing asset

the average person can use to create epic wealth. So now that you've had this shift in mindset, now that you're thinking wealthy, how does it feel, by the way? thinking wealthy. Now that you're thinking wealthy, where's the best market to buy this income-producing investment-grade real estate? Where do you get it? Well, conventional wisdom would have you think, and this is common advice, by the way, very common, too common, that if you can't drive to it, don't buy it. You hear that all the time. If you can't drive to it, don't buy it.

And that's terrible advice. It's so prevalent. It's a tragedy. That's the advice that's given out there. That's terrible advice. Because what do you do if you don't live within driving distance of income producing real estate? What do you do? Do you just not invest? Do you remove it as an option for you entirely just because you can't drive to it? Or do you move your family to a market where you can find such real estate?

I mean, neither of those are ideal solutions, not to mention terribly inconvenient. You know, when people give this advice, even if it's advice backed by experience, their personal experience, or they know somebody who had a bad situation with an investment that they could not drive to, it's not necessarily if you can't drive to it, don't buy it. That's not what they're saying. What they really mean to say is if you can't control it, don't buy it. Big difference. Just because you can drive to it doesn't mean you can control it.

Those don't work hand in hand, all right? The performance of a piece of real estate has nothing to do with its distance from your residence, but rather the control you wield over it. And what really matters in terms of control is, first, what level of understanding do you really have about exactly what that asset does to make money? I mean, the more you understand this, the less mystery there is in determining whether you are making a good investment or not. I mean, when it comes to how we make money with rental property,

I have a complete understanding, and so should you, of exactly how it's done. We simply provide a place to live to a hardworking family or individual who wants to rent that place from us. And we get to know ahead of time what kind of rent that's going to be, period. That's it. That's very easy to understand. Now, of course, there are details to acquiring and managing a profitable rental property, but I love how simple the business is at its core. And that understanding of the process,

and that's my first huge mental control that gives me confidence to invest, to invest long distance. Now, let's go back to that 401K example that we discussed last week because there's another huge control that I have versus a traditional investment that gives me a lot of confidence,

which is the fact that I call the shots. I'm the boss. I mean, if I own stock, in, let's say, I don't know, Coca-Cola. And I see that they are running a commercial with a celebrity I don't like. Can I pick up the phone and tell Coca-Cola to change that, to fire that celebrity, to hire my favorite celebrity? Absolutely not.

Far more seriously, however, what if they do something that loses me money? Can I do anything about it except simply just sell the stock? No, no, nothing, nothing at all. Now, compare this with the control that I have in my long, distance real estate. I mean, if I have questions about my tenant, if I have questions about the rent, possible repairs, the neighborhood,

anything like that, I can pick up the phone and my property manager will talk to me and answer my questions. My manager can help me get all of the information I need to make a decision about anything related to my property.

But regardless of his opinion, I am still in control. I call the shots and I like that. My property manager then becomes a trusted advisor in the same way a golf caddy is a trusted advisor. But you ultimately hold and swing the club. In fact, the manager himself is a replaceable piece of the puzzle. If for whatever reason you want to hire someone new, or heck, you can even trade out the

property itself if a better opportunity arises. In the end, I like the balance of ultimately being in control, but having trusted advisors to guide me. It's a whole lot like, you know, having a great doctor, you are ultimately in charge of what happens to you. You actually pay the doctor's salary, but if you've built trust in that doctor, you can be in control and relax knowing that you're in good hands, all at the same time. And this leads me to the biggest aspect of what makes me comfortable investing long distance. And that is leveraging myself through the relationships I've built with great local teams. You know, I get asked all the time,

why don't you own properties over here? Why don't you own properties in that town or that city or that county and that state? I get asked that all the time and I always tell them, it's because I just don't know anyone there yet. That's right. Notice I didn't say I can't find any good deals there. Or I didn't say that the economy is terrible or that the jobs are all moving out of that area. I didn't say anything like that.

Certainly I pay attention to that type of stuff. But ultimately, it's because I don't have a trusted relationship there yet. These relationships of trust, these are everything. And real estate absolutely holds the power to create financial freedom. But if you can never stop worrying about the team you're using to help create this income, then that's not freedom. Building relationships, that comes first. And it takes time and it takes some effort.

The great thing about relationships is that you can either build them. You can take the time to do that. Or you can borrow them. In fact, borrowing relationships. is something we do all the time in life, whether it's asking a friend if they know a good mechanic, or if it's hiring the same caterers your in-laws used at Christmas, or if it's using the team of a successful real estate investor

to go to work for you. Borrowing someone's relationships is a double benefit to me because now I have two people in the mix who both stand behind that connection, and they both want to see that the best possible outcome happen. I think I mentioned last week, but in case I didn't, I actually think there are some great advantages to investing in long a distance as well. It's not just can you or can you make it work.

I think there's some advantages to it as well. You see, very few people will learn how to properly leverage a team, how to manage a team. Very few people will actually let go and learn how to work through other people's eyes and other people's hands and other people's expertise. but if you can, this is the ultimate leverage. Even if I could invest for cash flow in my own backyard, I still wouldn't be doing the work myself. I would still leverage the eyes, the hands, and expertise of others.

And if you can do that, then you get to follow opportunity anywhere and invest where it makes the most sense for you, where you have the highest return and the most security. And to me, that's control. That's safe. Otherwise, you have to just work with what's nearby. And if it's a bad deal that just happens to be nearby, the nearby part doesn't remedy the bad deal part.

That's not safety. That's not control. Investing long distance allows you to follow the best deals and thus increase control and maximize growth, maximize your ROI, maximize your monthly cash flow, accelerating your journey to financial freedoms doorstep. You know, leveraging yourself through teams, you'll have another final advantage in investing long distance,

which is having very little competition chasing you down as you build a real estate business the right way. Most people, they simply cannot or will not build or tap into a trusted team, and so they are limited by their own time, their own skills, and their comfort zones. These people insist on doing everything themselves

and complain to their friends, about the calls to fix a toilet they got in the middle of the night. Unfortunately, this is what most people do. They own a property, but they don't run a business. And it is a business. It's your business. Your financial freedom business. Your life business.

And shouldn't it be you in charge of your life? Understand this. And please let it sink in. My job is to manage teams, not manage properties. And that is why I'm financially free. And it's the quickest access. to your freedom as well. Investing long distance has forced me into this habit of managing teams, not properties, from day one. And hundreds of deals later, well, here I am. You know, whether you

leverage my team at Cashflow savvy, of which you're welcome to do, or someone else's team, or take the time to build your own, it's through you managing this team where your freedom exists. And it doesn't matter where the property is. If you want to learn more about our team, Go to cashflow savvy.com and download our investor package, cashflow savvy.com. Now, we'll be back with more and how having limited funds to invest in real estate is actually your unfair advantage. We're going to discuss that right after this. If opening up your financial statement each month is about as exciting as watching paint dry, the Epic Wealth Fund may be the next investment opportunity for you.

The Epic Wealth Fund invests in distressed real estate and shares the profits with its share. shareholders. If you're an accredited investor who has already enjoyed success elsewhere in their business or investing life, and you're seeking a broader exposure to real estate in your portfolio on a passive basis, the Epic Wealth Fund's executive summary is available for your review. Go to EpicWealthfund.com to review the fund's executive summary. Epicwealthfund.com. Real estate investments involve a high degree overest residential income and returns may vary and are not guaranteed. Past performance has no indication of future performance. nothing herein shall be construed as investment, tax, legal, or accounting advice.

And now, back to creating your Epic wealth. Whether you believe it or not, you do not need money to invest in real estate. It's true. And, you know, most of my do-it-yourself education at the Epic Pro Academy is directed towards investing in real estate with little to no money and a terrible credit score. That's how the education shows you how to operate in that fashion if that happens to be your situation. but I've been asked multiple times, and this question seems to be hitting me more and more frequently.

The question being, Matt, what should I do if I do have money? And I've got a good credit score. How should I invest then? Well, you know, my teachings aren't only directed at people with no money. No, that's not who it's for, although it helps those people significantly and they get help there in other ways that they really can't anywhere else. The teachings, though, they're for everyone. Rather, what I'm trying to impress upon you is the value of using your brain to be a creative

thinker rather than a conventional one. Here's the thing. The more of your own money you use, the lower your returns get. And I got used to infinite returns. That's what worked for me. It's what continues to build my business today. So that's what I teach. So while I'm not opposed to using my own money, I just don't do it unless I have to.

to. And for those of you with an abundance of money and credit, I'll tell you what I'd do. Okay, I'll go ahead and I'll tell you what I'd do. I'll answer the question. But then I'm still going to follow it up with why you should first learn to invest with none of your own money and how that can actually create an unfair advantage for yourself. So scenario number one, Mr. Mrs. Moneybags, if this is you, this one's for you. I would hold more and flip less. If I had, if I was Mr. Moneybags, I would hold more properties and flip less of them. Because flipping is really only useful if you need to generate large sums of cash. If you need cash to keep your business running or if you need cash to keep your business growing,

then, okay, that's where flipping comes in really handy. I mean, it's stressful to flip properties and no one is going to achieve financial freedom from flipping houses. You might get rich flipping houses, but you're not going to get wealthy. You get wealthy holding them. Because flipping houses, it's another job. a means to an end. If you don't have to flip properties to create cash before being able to buy for cash flow, then why do it? I mean, unless you love it, of course, you'll get no argument from me if that's what you love to do. But why do it? I'd skip that part. I'd skip that part entirely

and invest for cash flow using as much of my credit as possible. Didn't say my cash yet, I said my credit, because I would want to take full advantage of today's long-term low-interest loans. I'd look for investments specifically that pay a higher ROI by at least a couple points greater than what my money is currently receiving. So, for example, if my money in the stock market is averaging a 5% return, I'd probably place my minimum deal standards for new investments at 7 to 8%. That's not a rule or anything. That's just what I would do.

And then as my portfolio, the average return in my portfolio grew to say 7 to 8%, I'd increase my minimum deal standard to say 10 to 12%. And I just kind of keep moving forward in that fashion. You know, a solid system for achieving epic wealth is to continually exchange low yielding assets for higher yielding ones. Just look for the lowest yielding one, maybe liquidate that, and then go and find another investment that produces more and just keep exchanging that and working your way up. Anyway, I keep buying in this fashion.

And I would refinance every chance I got so I could use the equity from that property. to purchase more cash flowing property. Then, once I achieved my desired monthly cash flow, I would take the collective income from my investments and commit that to paying down the debt of my highest grossing properties. I'd just pick the one that paid the highest gross rent and I'd focus on paying that one down.

And I'd just knock those down one at a time and then moving down to the next highest grossing one down to the next one. The rule of thumb here being leverage as much debt as possible to build your wealth because that's the fastest way to do it. and then once you achieve your desired wealth, now pay down the debt to preserve your wealth. Got it? You know, when you're building wealth, even if you have some money to begin with, I'd still use

as little of your own money as possible because it's my adamant belief that everyone should force themselves to invest in real estate with no money. And here's why. First reason, as I just mentioned, it builds your wealth a whole lot faster this way. The second reason, by forcing yourself to be creative, you will develop skills that you otherwise would not. And that includes not getting into bad deals because you have the ability to bail yourself out. You see, if you've got the skills that you get by having money, those cost you, right? Because you throw money at the problem and that costs you.

The skills you develop by investing with no money, those skills are going to pay you and are going to give you an unfair advantage in the long term. I mean, in a nutshell, forcing yourself to invest using as little of your own money as possible, develops better investing skills. You become a better investor this way. So scenario number two, Oliver Twist, you got empty pockets. Well, there are five skills that, if you develop them, will make you an unstoppable force in the real estate world. And by having empty pockets, you are forced to develop these skills. And they are, one, generating free leads.

I mean, sure you can pay the big bucks for a gargantuan marketing campaign. But in all honesty, the best leads are the free leads. When you don't have a huge marketing budget, you get really good at generating leads. My best deals have all come from free leads. If you don't, you know, you go hungry. People skills. If you have terrible people skills, you'll be a terrible real estate investor. And when you are forced to do a deal with no money, your people skills, they develop really fast at space shuttle speed.

and if they don't again you go hungry you starve three negotiating skills if if you have to buy low enough to create a profit if that's the objective of an investor you got to buy low enough to create a profit chances are you're going to need to negotiate it's negotiation that's going to get you to that place where you are buying low enough and when you don't have a deluxe padded bank account at your back you have to get creative your negotiation skills will also keep you from getting into bad deals and those develop automatically. Because if they don't, guess what? You starve.

Number four, the ability to raise capital. Robert Kiyosaki has said, the number one skill of an investor in today's economy is their ability to raise capital. If you don't have money, you're going to have to get it from somewhere. If you do have money, you will run out. And again, you're going to have to go get some more from somewhere. Which leads me to the all-important mother of skills.

your ability to structure a deal. If you want longevity in this business and the power to actualize real wealth, you have to know how to creatively structure deals. Concepts like subject to and seller financing or optioning, those don't even enter the consciousness of investors who have never had to get creative. You know, when you develop and incorporate these skills

into your investing, returns of 10%, 15%, 25%, that you can create with money, those returns could easily turn into infinite returns without money. Infinite returns. It's not a figure of speech. Those are real.

It's not theory. It's not a myth. They're real. If you structure a deal where you don't put a dime into it, but it's still cash flows, $200 a month, guess what? Your return on investment is infinite. You can't calculate that. That's real.

And people who have money never experienced that. And I'll tell you right now, in this game, you will outperform someone with money who doesn't have these skills every time. So, if you do have money, I challenge you to conduct your investing without it. Make it a game. Make it fun. Pretend. Let's just make believe you don't have any, and let's see what happens.

I think you're going to be shocked at the outcome. I mean, it might be a struggle in the beginning, as all new learning endeavors are. But sweet child of mind, the power you will acquire will set you up for the long run in ways you cannot even begin to imagine. And speaking of the long run, let's go ahead and expand on this subject, the subject of getting rich. And let's talk about getting rich permanently. And we'll do that right after this. 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 we'll be. show you how to take 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 cashflow savvy.com. That's cashflow savvy.com. That's it for today. We'll pick up from where we left off right here next week. See you then. This podcast is a part of the C-Suite Radio Network. For more top business podcasts, visit c-sweetradio.com.