Epic Real Estate Investing - The Fed's $36 TRILLION Dollar Mistake: How I Bought 50 Houses (They Had No Idea) | 1420

Episode Date: February 5, 2025

Ready to unlock the secrets the Federal Reserve doesn’t want you to know? In this explosive podcast episode, you'll discover how to turn the Fed's hidden strategies into a massive real estate fortune. We’ll reveal how you can use inflation to build wealth, with a real-life Las Vegas deal showing you the power of creative financing—think subject-to agreements and seller carryback notes. But that’s just the start! You’ll learn the 3-layer tenant protection system, maintenance hacks that save you big money, and advanced market analysis techniques that put you miles ahead of the competition. We’re also tackling the hard questions: How do you protect your properties from damage? How do you pick the right markets? And what happens if the economy crashes? This episode gives you the step-by-step blueprint to start using creative financing today, plus insider access to the Epic Apprentice Program for accelerated success. Don’t wait—start turning debt into wealth and join the financial freedom revolution now! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Hey, strap in. It's time for the epic real estate investing show. We'll be your guides as we navigate the housing market, the landscape of creative financing strategies, and everything you need to swap that office chair for a beach chair. If you're looking for some one-on-one help, meet us at rei-aise.com. Let's go, let's go, let's go, let's go, let's go, let's go.

Let's go. Want to know this secret that U.S. government doesn't want you to to figure out, I built a portfolio of 50 single-family homes by copying what the Federal Reserve does. Yeah, the Fed, they don't play by the rules that you're taught. And today, I'm going to show you how I use their methods to build massive wealth while the dollar continues to lose its value. You'll never look at debt the same way again. Let me take you back to 1971 real quick. That's when President Nixon took us off the gold standard and everything changed. And you might have heard that before. But what is not such common knowledge are the decades that followed. You see, inflation

a staggering 14%. And most people, they got crushed, but a small group of real estate investors, they made generational wealth. I'm going to show you exactly how they did it and why this strategy is even more powerful right now. Here, let's take a look at us debt clock.org. The U.S. now owes over $36 trillion. That's $104,000 for every American. But here's what they don't tell you. Add unfunded liabilities like Social Security and Medicare. That's another $650,000. per citizen. So for a family of four, that's two and a half million dollars in debt that you never signed up for. And so here's the million dollar question. How does the government plan to pay this all back? They don't. Instead, they're going to inflate it away. And I'm going to show you how to profit

from it. Let's look at what happened to smart investors in the 1970s. Take a $30,000 home mortgage from 1974 with 14% inflation. That debt was worth just $15,000 half in real terms by 1979, just five years later. Meanwhile, the property value, it doubled. And this isn't theory. This is documented history, and it's happening again right now. Now, let me show you how I'm using this strategy today with the deal that I just closed here in Vegas. This seller had a property worth $400,000, with an existing mortgage of $320,000 at 3.5%. Now, most investors would walk away, thinking that there wasn't enough equity. But here's where it gets interesting. You see, we took over their existing loan through a subject to agreement and structured a $40,000 seller carryback note.

And here's how the numbers work. The existing loan, $320,000 at $3.5%. The monthly payment for that is $13.90 a month. Then the seller note, that was $40,000 at $6%. So that monthly second for that note is $240 a month. So it gives me a total monthly debt of $1,630. Now, the property it rents for $2,800. So we take away about $400 in expenses.

So that leaves me with $770 in monthly cash flow. But here's the real magic, that 3 and a quarter percent fixed rate loan. That's like finding gold. in today's market. And it's everywhere. So with 7 to 8% inflation, I mean 2.9% inflation, the $320,000 loan, it gets easier to pay every year, while rents they keep on rising with inflation, creating an expanding spread of cash flow. Now, what if we can't find a great existing loan? They're everywhere, but let's just say you can't find one. Here's our second strategy. We structure seller financing with rapid principal paydown, three to 10 year balloon payments, and we do it below

market interest rates. Oftentimes, no interest rate at all. And you might wonder, why would the sellers agree to that? Well, because we solve their problems. We provide quick closings, no repairs, no commissions, no loan contingencies, often above market value, and they get guaranteed payments. Then, per the terms, the principal gets aggressively paid down, positioning the property for eventual conventional financing. So the goal is long-term fixed rate debt once we have enough equity to ensure cash flow. That's how we get inflation working for us, not against us. Now, let's address the three biggest concerns that I hear. What if my tenant damages the property? So here's our three-layer protection. One, rigorous tenant screening. Three times income requirement. We go for that. We make sure we have a clean background

check and we get positive rental history. The second thing is a security deposit plus. We get two months of security, non-refundable cleaning fees and renter's insurance. We require that from the tenant. Number three, property maintenance fund. So we hold $5,000 of reserves for per property. We get monthly contributions from cash flow. We keep building that. And then we get bi-annual inspections. The next question is, how do you handle maintenance across multiple properties? Well, the key is in systems. That's where the answer is. So the first is professional property management. We've got a 24-7 maintenance line. We've got nice vendor relationships, and we have regular inspections. The second system is the preventative maintenance

program. So we do quarterly HVAC servicing. We do annual roof inspections, and we have regular pest control. And the third system is the technology platform. We have centralized maintenance tracking, photo documentation and budget monitoring. I know that sounds like a lot, and it kind of is, but the property manager does it all. And then we manage the property manager. And now the multimillion dollar question, isn't it better Dubai in my local market? Well, not necessarily. You see, we analyze markets based on one, population growth, two, job diversity.

Three, we want landlord-friendly laws. Four, price-to-rent ratios. Those will have got to be in the right place. And then five, what I consider the most important is you need good. property management. You see, the real estate, that's the easy part. That's the safe part. The people are risky. So you want to conduct as much due diligence on the people that you work with as you do the properties themselves. You see, when it comes down to it, sometimes the best opportunities are outside your backyard. And if they are, what do you do? Just pass them up and not invest.

Oh, you put systems in place to protect yourself. Now, let's address the big elephant in the room. What about 2008? Aren't we due for a crash? Maybe. Maybe not. This is what I do know. The investors and the properties that survived the 2008 crash, they all had three things in common. One, they had strong cash flow from day one. Two, they had fixed rate mortgages. And three, they had professional property management. You see, this isn't about speculation. It's about mathematical certainty. And you've just learned the exact strategy that's helped me build a portfolio of 50 cash flowing homes. So how do you get started with creative financing like this? Well, the first step is you got to educate yourself. You need to understand the three core documents. You need the subject to agreement, the seller

financing note, and the due-on-sale clause protection. And you can get copies of all of mine for free at epic dot kit.com. These three documents and your understanding of them can make or break your deals. I mean, getting them wrong, that can be very, very costly. Step two, market research. So you need to identify your target market. And you need to pick the right one for you. But here's what most people get wrong. You're not just looking for good real estate markets. You're looking for markets with motivated sellers. The best creative financing deals are going to come from inherited properties, relocating property owners, tired landlords, and pre-foreclosure situations, people that are finding themselves in financial distress. And now step three, deal finding. Once you've identified your market,

now you've got to learn how to find these deals. So this means mastering direct mail campaigns, digital marketing strategies, network building with key professionals, how to search public records, or you know, you could just buy the leads for these deals at my speed to lead.com. Now, I know what you're thinking. This sounds like a lot to learn. And you're right. When I started, I made every mistake in the book. I had poorly written agreements. I had missed due diligence steps. I had inefficient marketing. I overthought everything. And it cost me time and money until I found the right mentors. That's why I could. created the Epic Apprentice program. It's a 90-day jumpstart where we work together and within 45

days, you'll lock in an off-market property with seller financing, gaining $10,000 in equity and $300 a month in cash flow. And that's guaranteed. So if you're serious about building wealth through real estate, don't waste years learning from expensive mistakes. Visit epicapprentice.com where you can see our student success stories, you can review the program curriculum and you can schedule a strategy session with our team. Now, either way, if we don't get to meet, that's perfect. find, we'll continue to post content like this that'll help you. But remember this. The Fed isn't stopping inflation. Property prices are going to keep rising and good deals are getting harder and harder to find. The time to start is right now. So take a quick look at Epicapprentice.com

and let's build your real estate empire together. I'll see you next time. Take care. And that wraps up the epic show. If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would. And when their name comes to mind, please share it with them and ask them to click the subscribe button when they get here and I'll take great care of them. God loves you and so do I. Health, peace, blessings, and success to you. I'm Matt Terrio. Living the dream. Yeah, yeah, we got the cash flow. You didn't know home for us. We got the cash flow. Okay, only 10 more presents to wrap. You're almost at the finish line. But first,

there, the last one. Enjoy a Coca-Cola for a pause that refreshes. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.