Epic Real Estate Investing - The Real Estate Strategy That’s Secretly Bankrupting Investors | 1417

Episode Date: January 29, 2025

In this episode, we dive deep into the pitfalls that cause real estate investors to fail, based on an analysis of 1,324 failed investors. Shockingly, 91% made the same four mistakes. Discover what these mistakes are and how you might unknowingly be making them. Learn from real-world examples of investors who went bankrupt and those who achieved success using the right strategies. We discuss the importance of aligning your investing strategy with your financial resources, risk tolerance, investment goals, and time commitment. Finally, explore how the Real Estate DNA Code can provide a personalized plan to match your unique personality and circumstances, helping you find the strategy that fits you best. Don't miss this essential guide to avoiding costly errors and achieving financial freedom through real estate investing. 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. 3.2 million dollar real estate portfolio gone in six months. Then, another one, $800,000 lost in a single flip. After analyzing 1,324 failed real estate investors, I found something disturbing. 91% of them made the exact same four mistakes. And the worst part, most new investors are making mistake number three right now without even knowing it. But before I reveal these mistakes that I discovered through a number of networking groups and masterminds, let me show you something.

In the last three years, I've watched seven. 72 house flippers go bankrupt. 238 rental investors lose their properties, and 419 wholesalers quit after losing their savings. But I also saw 286 investors have the best runs of their careers using the exact opposite approach. The first fatal mistake that causes real estate investors to fail, it's not because they're not smart enough or work hard enough or picked the wrong property. It's because they picked the wrong strategy. Could you be on the same path to failure without even knowing it? Let's see.

I mean, is your investing strategy, financial resources, and goals are they fighting each other? Are they in conflict? Like an investor who dives into fix and flips with only $30,000 saved up, not realizing they need closer to $100,000 to handle renovation surprises and holding costs. Or someone who starts buying rental properties for quick cash flow, but their real goal is to retire in five years, which would require a much more aggressive growth strategy. Or taking on a large multifamily property without understanding the operating expenses and debt service requirements, only to find a very important. out that the property barely breaks even. Let's be real. Real estate investing can be a struggle. Not because it's hard, because it can be confusing, like wholesaling, buy and hold, creative financing, fix and flip, the burr method, lease options. I mean, there are a million ways to make a million

bucks in real estate, but you only need one. So which one? People searching for that how to get rich in real estate answer frequently succumb to just, you know, the latest guru pitch that they heard or the last shiny object that showed up in their feed. But really, it all comes down to a Yes, that's what most people do. And that guess can cost them their savings, their time, and their shot at financial freedom. I mean, here, imagine this. You jump into house flipping, thinking that you're going to make some quick cash. But the renovation costs, they spiral. The market shifts. And suddenly, your quick flip, it's an absolute money pit. Here's the truth. Success isn't about finding the best strategy. It's about finding the best strategy for you.

And that starts with four critical questions. One, your financial resources. Are you sitting on capital or scraping together funds? Do you got a big budget? Hey, maybe Burr or Buy and Hold was going to work for you. Or are you tight on cash? Well, maybe wholesaling or bird dogging. That could be a smarter move for now. Number two, risk tolerance. Are you ready to roll the dice for big wins? Or do you need steady, predictable growth? You know, flipping and development, those are high reward, but high risk. And buy and hold or reits, they offer slower, safer growth. And then number three, investment goals. Quick profits or long-term wealth? Flipping and wholesaling, that can bring the fast cash. Buy and hold,

that's your real road to passive income and wealth. And number four, time commitment. Do you got the time, to manage projects and tenants? Or do you need something more hands off? Your strategy should match your schedule, not wreck it. But here's where most investors screw up. They ignore their own strengths. They ignore their preferences and they ignore their own lifestyle. You see, there's Rahim, a private client of mine. And before we had met, he'd clicked on a random Instagram ad that led to a free seminar. And he learned about the Burr method there and they made it sound like easy money. But he didn't realize how much time contractors, permits, and unexpected delays, would suck up, not to mention the bank hoops he'd have to jump through. This mistake, it almost

bankrupted Rahim. And that would have completely disqualified him from working with no cost capital. You see, if your credit score is 680 or higher, and you've had no bankruptcies in the last seven years, you've got no collections, you could qualify for up to $150,000 in funding. No complicated forms, no social security number needed, no awkward phone calls, just instant approval in 30 seconds at no costcapital.com. You see, when Rahim and I met, we pivoted him to a creative financing approach, picking up no money down rentals, leveraging seller financing, just consistent income, way less stress. But wait, it's not that simple. There's more to consider, like mistake number two, underestimating risk and time. You see, starting a house flip while working

a full-time job, thinking that you can manage contractors on lunch breaks, only to have the project drag on for months with cost overruns, that could be a big surprise, or buying a short-term rental property without calculating the seasonal vacancy rates, then struggling to cover the mortgage during the off-season months. Or attempting to manage multiple renovation projects simultaneously without proper systems in place, leading to costly mistakes and missed deadlines. Then there's mistake number three, ignoring market trends and laws. Investing in a neighborhood that's declining because the houses are cheap without researching why major employers are leaving the area. Or building an Airbnb portfolio in an area where the city council is actively working to restrict short-term rentals. Or buying

properties in a flood zone without understanding the rising insurance costs and new FEMA regulations. And then mistake number four, no backup plan, putting all your capital into a single flip project without reserves, then getting caught in a market downturn with no way to hold the property. Or relying solely on conventional financing for deals, then getting stuck when interest rates spike and banks tighten their lending criteria. Or building a business around just one lead source like cold calling, without developing other marketing channels, then watching deals dry up when regulations change. So how do you really figure out which strategy is perfect for you? Well, that's where the real estate DNA code comes in. It's a personalized blueprint that matches your personality,

your finances, your time and goals and your strengths and your preferences, all to the ideal strategy. It answers, are you hands on or are you hands off? Do you love taking risks or playing it safe? Do you like some uncertainty or, you know, do you want to be really comfortable? How much capital can you invest today? or if any. Are you chasing fast cash or are you building slow, steady wealth? Let me tell you about a client of mine, JT, an introvert who thought cold calling for leads would work because a guru told him to do it. And he hated every second of it. So what we did is we switched his strategy to generating leads through strategic relationships. That was more in alignment with who he was. So there's more behind the scenes, more strategy involved, and he took off. So now it's your turn.

Stop guessing. Stop forcing strategies that don't fit you. Discover your real estate DNA. and unlock the strategy that aligns with who you are. Right now, I'm offering this personalized game plan for free. So go to real estate dna code.com and claim yours. I personally create each one, and it takes me about 20 to 25 minutes to do so. So I can only offer this for a short time. Once it takes up all of my free time,

I'm going to have to push back and call that quits. But it's available now. I mean, imagine waking up knowing exactly which strategy is built for you. No more stress, no more confusion, just a clear path to financial freedom. and your very next step of your financial freedom journey, that's going to be one of confidence. Go to real estate dna code.com and let's unlock yours.

Look, real estate, it's not about following the latest trend. It's about following the strategy that aligns with you. That's the difference between burning out and building lasting wealth. All right? 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 it. 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.