Epic Real Estate Investing - The Foundation | Episode 129

Episode Date: November 5, 2014

Today Matt is laying the foundation of a successful real estate investing business.  That foundation does not begin with running wildly into action; it begins with your mind and your motivation.  So the focus of this episode is getting your mind right.  Put another way, you will learn how to think like a millionaire real estate investor, and why doing so is critical to your success. ------- 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

Broadcasting from Terrio Studios in Glendale, California. It's time for Epic Real Estate Investing with Matt Terrio. Yeah. Hello. Hello and welcome to the Epic Real Estate Investing podcast. This is the show where I show people how to escape the rat race using real estate. And I did it myself by changing just this one thing, changed this one thing, just one time. And that one thing that I changed was my focus.

I shifted my focus from making piles of cash to making streams of cash and boom, financial freedom was mine. That's what happens. I accomplished in just under four years what 95% of our population is unable to do in 40 years. And that is to achieve financial freedom. And that's what I want for you. Because I want you to experience it as well and to help you get started. I want to give you and personally walk you through the two easiest and fastest strategies of the 12 that I use to create my financial freedom. and you can get them for free at free real estate investing course.com.

Go there. It's free. And it's all new, by the way. Just updated that entire course about a month ago, and it's still free. But it won't be for long. Come January 1st, I'm going to go ahead and I'm going to take that course and it's going to be included inside of the Epic Pro Academy. So get it before it's too late. There's enough there to start making money in real estate.

I've had several people on this show that have done just that with nothing else, but that course and, you know, it's all right there in the course. So here we are on, what's this, day three of getting back to the basic series. And if you're just finding us, make sure you go back and download the last couple episodes and catch up. All right, we'll be here waiting for you. All right. What else?

Oh, also head over to grow and grow rich.com as we've just posted a bunch of new live events. And the next event is December 3rd in San Diego. All right. join my team myself. We're going to have an awesome Grub and Grow Rich event there where we talk real estate. We drink beer. We eat wings and then we talk real estate some more. And went around and around we goes until we're just tired of doing all of that.

So it's probably my favorite part of what I get to do is interacting with you in an Uber relaxed environment. So we've got other events coming up to. All the details can be found there at Grub and Grow Rich.com. I just wanted to share that information with you about the one in San Diego because it's coming up in less than a month, December 3rd. So, all right. So last episode, I discussed the big picture.

Okay? And I discussed briefly kind of cover the four stages. Every real estate investor must go through on their road to financial freedom. And then the four steps that make up every transaction. That's the big picture. All right. Or now it's time to, I guess, lay the foundation, if you will. You see, true success.

It does not begin with just, you know, going out there running wildly into action. That's why this is the course that we've taken here. We're on day three and you're just like, where's the action steps? Come on, come on. Okay, we're going to get to it. All right, we're going to get to that today. But true success doesn't begin that way.

It begins with your mind and your motivation. And with that being the case and with this week's series dedicated to starting at the beginning, this is where we're starting. Okay, this is why we're here. It's all in the interest of true success. Now, last episode, I touched on the four stages of the millionaire real estate investor. That's cap. That's a recap.

But we'll do so in a little more detail, okay? And the reason why is this is the road that you will be traveling to financial freedom. So it's important that the road you'll be traveling is clear, that there's a clear path. So, you know, you don't wake up like I did earlier this year wondering, what in the hell am I doing? And where am I going? Why am I here? How did I get here? Yes, it happens and it happens to the best of us.

It can happen to anyone. And it's not a pleasant feeling when it does happen. So let's create some clarity around these four stages so that that doesn't happen to you. Deal? All right. Stage one, think like a millionaire real estate investor. Now, if you've never invested in real estate before, chances are high that you're going to have to drastically alter your thinking from how it currently is. and if you've been making a go at this with, you know, frustrating results,

yeah, you're probably going to have to drastically alter your thinking from how it currently is. Also, you know, how you think about money, how you think about business, it's awfully greatly determined by your upbringing. And here's what I mean. If your parents had a natural tendency to balk at prices and think something along the lines of, I can't afford that, it's very likely that you do too. I can't afford that. You've probably said that before.

Can't afford it. Can't go this weekend. I can't afford it. I can't get that car. I can't afford it. I can't live over there. I can't afford it. Right?

We've all said that. You'll need to transform your thinking, though, now that you're coming into real estate, now that you're coming as a business owner, as a real estate entrepreneur. The new question is, how can I afford that? Not I can't afford that. It's how can I afford that? If you see an opportunity that you have, you know, and you have a natural tendency, I guess, to think, how much is this going to cost me?

Uh-uh. Wrong. You're going to need to transform your thinking into how much is this going to make me. Okay? Not how much is going to cost me. That's the wrong answer. That's the wrong question. It's the wrong question that gives you an even worse answer. So the new question is how is this, how much is this going to make me? And if you're averse to taking a calculated risk on a genuine opportunity, you don't need to understand that in this business avoiding that risk and avoiding what you, uh, perceive as risks, that's probably the riskier thing to do is to avoid them. You want to go in and you want to take calculated risks on genuine opportunities, then you want to try and manage those risks.

That's why we're in real estate because we've got a lot of control like that. So realize that avoiding that risk is actually the riskier thing to do in most cases. All right. So those are a few examples of how, you know, successful real estate investors think as opposed to darn near everybody else in the world. Additionally, you want to get used to making quick decisions. And you want to resist second guessing yourself. You want to make quick decisions.

And I'm going to show you how to do that later on on how to make those quick decisions and do them responsibly. You know, as a real estate investor, you're going to have to make important decisions and lots of them. And if you plan to survive in this business, you'll have to make those important decisions fast. And like I said, I'm going to show you how to make fast decisions with confidence, giving you a significant advantage over your competition. But right now I want you to understand that the one decision,

the one decision you must stay away from is indecision. Yeah, not making a decision is also a decision. And it's a costly one. You know, General Cole and Powell, one of the greatest military leaders of our time, once said, indecision has cost the American government, American businesses, and the American people billions of dollars more than the wrong decision.

It's more expensive to avoid making a decision than it is to make the wrong decision. And then General George S. Patton said, the best thing you can do is to make the right decision. The next best thing is the wrong decision. And the worst thing you can do is to make no decision at all. Now, this line of thinking of these two great Americans is it's the foundation of successful real estate investing thinking. I mean, Powell and Patton, they would have made great real estate investors with those types of thoughts running through their head. You see, most people, they make their decisions slowly, and then they change their minds quickly.

They freak out. I don't know. Let me go and think about that. Let me run the numbers. Let me do the research. Let me ask for opinions. Let me check this. Let me check that.

And they finally say, okay, I'll do it. And then the slightest little hiccup happens, and boom, they change their minds. And they back out. Or they go do something else. and very hastily. You know, the most successful real estate investors, they make decisions quickly and change their mind slowly.

And in a coming lesson, I'm going to show you step by step how to make quick decisions with confidence and accuracy so you can beat your competition to the best deals. But right now I need you to understand the importance of speedy decision-making.

So when you have the steps, you'll be able to put them into practice with supreme efficiency and operate really quickly. You know, so often people run straight to the how without understanding the why. And that, my friends, is why they don't succeed in the long run, okay? Back to your brain. By adopting this type of thinking, that is successful real estate investor thinking, your chances for success have just improved tenfold. Your thinking is, it's everything in this business.

It's everything. We're touching on that a lot more frequently. and it's just, it's everything. Every action you take is preceded by thought. If taking the right actions are important to you, then your thinking should be as, if not more, important to you. Stages two through four, the buy a million, own a million, receive a million dollars of real estate,

stages two through four will be a breeze if you master this first stage. Think like a millionaire real estate investor. All right. So having said that, let's touch on the three other stages of becoming a successful real estate investor. We'll go into the how of them shortly. Right now, we're laying the foundation. Okay. Stage two, buy a million dollars of real estate.

If you're going to get to a place where you receive a million dollars of annual passive income from your real estate, you're going to buy the real estate first, right? Now, that may cause you to pause right there, especially if you're short on money or lacking in credit. I assure you no problem. We're going to cover it all. Stay with me, okay? That's stage two, buy a million dollars of real estate. Stage three, own a million dollars of real estate. You see, there's a difference between being on title to real estate valued at a million dollars

and actually owning a million dollars of real estate. I mean, you could be on title to one million dollars worth of real estate, valued a one million dollars valued real estate. But if you have a combined mortgage of $900,000, you don't own it. the lender or the note holder does. The focus on this stage is to make that transition from buying to owning, to take that property that's worth a million dollars that has a $900,000 debt on it and transferring that $900,000 out somewhere else.

So you actually own that real estate. And this is much easier to do than you think. And it's perhaps the most fun part of the business, for me at least. and whether you find it fun or not, just know it's easier than most people think, and we'll get to that. Stage four, receive a million dollars of annual passive income from your real estate.

And that right there, that's the ultimate goal, right? Once you reach that, stage four, that's, you're free. You know, in order to reach this stage, as well as stage three, you're gonna need some cash, okay? It doesn't necessarily have to be your cash, but you will need some cash.

This is when you're going to start needing money. And generating that cash is the primary focus of this week. As generating simple cash, it just kind of comprises the basics of real estate investing. And that's what this week is about is going back to the basics. So you're going to learn how to do deals that make you cash this week using none of your own cash. Got it? Using none of your own money. Ideally, as I've mentioned, I want to see you make your first paycheck before the end of December.

That's my goal for you. and that's a realistic timeline. So this week I'm going to be showing you everything that you need to know. I'll open the door. I know we're halfway through the week, but hang in there. I'm going to open the door, but you've got to walk through it and you've got to keep walking. Okay? Got it?

Good. So the immediate focus is cash. That's what you want. You will need cash for stages three and four. Cash, cash. That's what you want. Now we've established that. Now we must get in touch with why you want it.

and just because I do, that's not a strong enough reason to stick it out long term, okay? The Y is the most important part of your real estate investing business. And here's the reason. It's one thing like to, you know, wake up in the morning and just decide, hey, I'm feeling pretty good. I want to be a successful real estate investor. Okay? That's one thing to do that. But it's another thing entirely to get up and do that every single day and then take the

core actions, the correlate actions with that statement to go and become a successful real estate investor, a millionaire real estate investor. I mean, if all it took to become successful was to work, go to work on the days that we felt like it, we'd all be successful, right? You're going to have to get up and go to work on the days you don't feel like it too. In fact, that's where all the difference is made. You know, moving forward with consistency and persistence no matter what, that's what will separate you from all the others, from the observers, from the excuse makers and the quitters. In order for you or anyone for that matter to push through and do what it takes on a daily basis, you'll have to be firmly in touch with your why.

If you're not, you won't last. I promise. Okay. So here's your first action step. We're going to take some action now. Your first action step this week is to uncover your why. Okay? And I've got a simple three-step formula that's going to,

I'll walk you through it. You know, entire books have been written on this subject alone. But here's a shortcut. Number one, let's establish what you want. And we've kind of done that in this episode, right? We've done that. Cash. That's what we want right now.

At least for the purpose of this week, that's what we want is cash. Number two, ask yourself at least three times as to why you want the cash. And that might sound something like this. I want cash so I can buy real estate. Okay, why? Well, I want to buy real estate because it's the best shot the average person has at achieving financial freedom. And I want to be financially free. All right, why?

Because I want to spend more time with my family. Okay, why? Because that's when I'm happiest. And keep digging. Keep digging and asking that question, why, for as long as you can. But at the very least, ask yourself why three times. Okay, so that's step two. ask yourself at least three times as to why you want the cash.

Now step three, this is the final step. After you've reached your last answer, I want you to ask yourself, how will that make me feel? How would it make you feel to have the time and financial freedom to spend more time with your family? As our example illustrated. Answer that. So let's say it will make you feel relieved. It'll make you feel free and fulfilled. So there you go.

That's your why. Relief, freedom, fulfillment. You see, it's important to define your why in pursuit of the cash. You know, when you think about it, we don't really even want the cash. That's why it's important because we don't even want the cash. We think we want the cash, but that's not the real goal. We don't want the real estate either. We don't want that.

And believe it or not, we don't even want the financial freedom. What? What are you talking about? I don't want the financial freedom. Of course I do. No. What we really want is the feeling we think that the cash, the real estate, and the financial freedom is going to give us.

That's what we want. We want to feel relieved, free, and fulfilled. As in this example illustrates. The feeling is what we truly desire. It's not the cash. It's not the real estate. It's the financial freedom. It's not none of those.

It's the feeling we think those three things. will give us. So stay in touch with the feeling that you're chasing. Okay, that's your fuel. I want the relief and freedom and fulfillment. How would that feel? And then what am I going to get if I don't chase it? Typically the opposite.

So that's your fuel. Stay in touch with that feeling. That feeling will keep you moving forward when you feel like quitting. And there will be times in this business where you feel like quitting. But don't. Because look at the alternative. Look at what you're chasing. You're chasing in this example, relief and freedom and fulfillment.

And what's the alternative? Stress and worry and chaos. Okay? Investing in real estate is simple. And the epic approach simplifies it further. But stay in touch with that feeling. As I've said many times here on the show, and it's worth repeating, it never gets old. if you do for the next few years what most people won't do,

you'll be able to do for the rest of your life what most people can't do. You'll have options that most people can't even imagine. It's worth it. You're worth it. And by staying in touch with that feeling, your freedom will manifest. All righty. So this is going to be a short episode today. I'm going to cut it short right here because there's a lot there that I want you to sit with.

I want you to get in touch with why you want this, why you want real estate success. Take your time with those three steps and get in touch with that feeling. For the more in touch with it you are, the more your success in real estate will come about. All righty. So spend some time with that.

Do this exercise. Meet me back here tomorrow and we'll pick up from right here. Now, you know what time it is now. It's time to give away this episode's $100. Amazon.com gift card. And I'm doing this on every episode in November. all you have to do is to be eligible to win is to go to iTunes and leave a review for the show.

If you've already left a review at some point in the past, any time in the past, there's nothing for you to do. You're already entered. And if you'd like to enter, just follow me here. Head on over to iTunes. Type in Epic Real Estate investing into the search window. Click on this podcast. Click on the ratings and reviews tab.

And there you go. Leave a review right there. And since I'm here right now, I'll show you how it works. I'll spin the scroll bar and stop it on a random review like this. one right here left just last week. Headline says, can't give enough praise and gratitude by, oh, here's one I can finally read. Cookies and Cream 99. This is so full of valuable information. I take notes on so many episodes, also very motivational. The knowledge and encouragement is helping me to get over all kinds of fears, both in general and in relation to real estate investing

specifically. Thank you so much for your willingness to share. Well, cookies and cream 99, you are absolutely welcome and it is my pleasure. So go ahead, send me an email to podcast at epic real estate.com, cookies and cream 99, send that to me and I'll reply with a $100.m.com gift card that you can use for the holidays or for yourself or whatever you want. So that's how it works. Every episode in November, I'll give one of these away. You know, and a few people this week, they actually asked me, excuse me, they asked me why

I'm doing this and why I'm giving away a $100 gift. card every episode and I answered, you know, just because, because I'm grateful. I'm grateful for what real estate has blessed me with and I'm grateful that I get to share it with others and I'm grateful for you because without you, none of this would be possible. I wouldn't be here. There weren't any ears out there. I don't know if I'd be talking. I know that I'd probably appease my wife more if I didn't talk as much, but it's for you.

You are my why. You're a big part of my why. and so what I want you to do is take on this three-step exercise in today's episode and discover yours and then meet me back here tomorrow for another episode of Epic Real Estate Investing. 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.