Epic Real Estate Investing - The Secret to Living the Life of Your Dreams - Epic Wealth Wednesday | 282

Episode Date: July 12, 2017

The secret to living the life of your dreams is to split the connection between time and money. Learn why trading time for money is not sustainable and discover how to experience a life free of financial stress. Do you know how passive income is the key? Join Epic Wealth Wednesday as we explore ways to free yourself from the time constraints of the rat race. Epic Real Estate Investing is here to maximize the possibilities with passive income! ______   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

Today's episode is sponsored by Credit Bump, a new fast and simple way to get up to $150,000 of revolving lines of credit. Use the funds for anything you need. Startup costs for your business, capital expenses, product development, inventory, marketing, promotion, creative real estate acquisitions and strategies, anything your business needs. They have a 60-second online application. It's a soft inquiry, meaning the application process will not impact your credit score in any way. There are no upfront fees. Interest rates are as low as 0% for the first 12%. to 18 months. If you opt in for their credit consulting, you'll learn how to extend your 0% interest rates, far and beyond that, build corporate credit and so much more. The approval is based on your credit score and your stated income. And if you're pre-approved and you don't receive at least $50,000 in funding, you don't pay a cent in fees. Through their service, I've

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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 wealth. Your host, Matt Terrio.

Hello. Hello and welcome to the creating epic wealth show, the revolutionary new money show disguised as a real estate show. As real estate, it's 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. Now, imagine this. You catch a plane to Italy, Greece, Peru, Argentina. You spend weeks on in, a reveling in the sand and the surf, you taste new foods, you discover new music,

you spot wildlife that you've only seen on TV. You don't check email once, the entire time that you're there. Hell, you're having the time of your life that you forget to even post photos to Facebook. You're profoundly offline, like it's 1969. You return to the United States, you go and you check your bank balance,

and you notice something. You notice that it has grown while you've been abroad. You've returned from your extended trip with more money than you had when you left. Sound like a fantasy? Eh, this can be your reality. It really can. If you create passive income.

Passive income. What is it? I mean, what is it really? I mean, many people, they have an idea of what it is. I mean, it's right there in the word or the description. It's passive, right? And it's their idea of what it is versus what it actually is that can frustrate the most flexible, patient,

understanding, and resilient people. So what is it? Well, passive income, it's income that finds its way to your bank account while you're doing something else other than working, like sleeping or eating ice cream or eating ice cream while you're sleeping. When you're collecting passive income, your money is working harder than you are. Notice that I didn't exclude your work from the description. It's just working harder than you.

you are working. And more on that shortly, what happens is your income, it just, it essentially loses correlation to your hours. You know, at any job, regardless of the income that it pays, there's a relationship between time and money. Active income requires an exchange of time for money. Active income in our society, it's the state of affairs when it comes to making a living. And you can hear it. You hear it daily reverberating in an everyday conversation. Like, she makes $80,000 a year, or I charge $200 per hour, or he earns $4,000 per month. These statements, they reflect a connection between time and money. The more hours you log at the office, the more money you make.

Passive income completely shatters this relationship. See, time is limited. Money is infinite. Time is precious, and it's in short supply. It's not going to last forever. Money, however, is abundant. So trading time for money, it's unsustainable. Of course, unless you're Kim Kardashian or the offspring of a Kennedy, or even the offspring of a Kardashian, you're forced to exchange time for dollars in the beginning.

But it's just a stepping stone. Trading time for money, it's a temporary situation. It's not permanent. unless you'd like it to be, if you do have a choice. Right? Yeah, I didn't think so. It's not exchanging time for dollars is probably not going to be your decision if you have a choice and you do have a choice. You know, passive income, residual income, cash flow, it goes by many names.

The idea of passive income, it's very encouraging. It's one that alludes to a life free of financial worry. And further, the concept of passive income, it's logical and it's easy to understand. So, with all that said, how could the pursuit of this simple income model leave so many baffled and demoralized? You know, the investment world, it can be a discouraging landscape to navigate of which a number of obstacles and vehicles and players can, you know, hinder your progress. The wide array of interruptions and distractions that you can encounter when it comes to your financial future have you constantly questioning your current investments and your current efforts. Am I doing the right thing? Is this the best I can do? Will my current investments even get me to where I want to go?

If so, will they get me there in time? You know, if those thoughts and questions, if those aren't enough to drive you absolutely baddy, you know, every place you turn for some sort of financial advice, whether it be an investment magazine, a website, or an expert TV personality, you know, your spidey sense, it's activated by inauthenticity and notions of downright conspiracy. Hell, your own financial planner seems more of an insurance salesman out for her own best interest than anything resembling a source of helpful information. Face it, you're tired of being sold. You're tired of being misled. And the frustration continues as you have limited time, not to mention little desire to take your investing into your own hands. I mean,

you've already got a career. You've got a family. You've got enough responsibility. as it is. Who has the time to maneuver through the vast body of investment options to find the right ones for you, the right ones for your situation, the right ones that are going to get you to your goals? Ultimately, your biggest fear of never being able to escape the rat race, that's a serious concern. And it's a concern that seems like, wow, it's coming true.

I might not ever be able to escape. Will you ever get any time for yourself to do what you want? Yeah, you're not alone. You're not alone. and you know what's even better or might give you more comfort it's not your fault I mean all you want are some some investments that are easy to understand and confidence that they're going to produce right at or maybe even above market averages you don't want much you just maybe right out or above market averages you want options you want the facts you want someone

competent that you can trust to take on all of that heavy lifting finding and informing and managing your investments for you even if you found even if you don't just just one new option to add to your portfolio that met your criteria that was going to get you to where you want to be and the time you want to be there, that would be refreshing progress, just one new option that was going to perform. Fundamentally, you aspire to an investment portfolio that produces a steady stream of consistent passive income that will grant you the free time for the more important things in life, things other than work. At a certain point in life, time is more important than money. And it's passive income that will buy you that time like nothing else.

You know, the term rat race. We use it frequently here on the show. And it's a metaphor for a person's situation in which they find themselves financially trapped by their circumstances. And regardless of the amount of effort they put forth, the best that they seem to do is stand still. That's the best that they do is just stand still. The financial obligations that we could elect, over the course of our lives, such as mortgage, rent, car expenses, doctor bills, student loans, daycare, insurance, activities for the kids, braces, and countless other expenses that can render us enslaved to our jobs. You know, in a recent survey by Forbes magazine, 56% of Americans said that they have less, less than $1,000 in their checking and savings

accounts combined. Less than $1,000. 76% of Americans, Our living paycheck to paycheck and at serious risk of financial ruin should just the slightest thing in our lives go awry. And the highest paying jobs of society often aren't enough to escape the rat race either. You know, as a result, people tend to stick with jobs they dislike for fear of jumping out of the frying pan and into the fire. You know, with very few exceptions, it's the pursuit of active income that keeps us in the rat race. Active income, it comes as a direct result of our efforts.

You know, the phrase exchanging time for dollars that's frequently used to describe active income. This can be seen in wages, salaries, and self-employed service providers like lawyers and doctors and real estate agents and commission salespeople. Now, there's a minute percentage of society who's compensated with vast amounts of money, you know, like a corporate CEO, professional athletes, rock stars, celebrities. You know, earning a high active income typically requires dedication, talent, favor, timing. and a certain amount of just good fortune that's beyond most people. As good as this type of active income can be, though, it's still limited because no matter how much money one gets paid,

they still need to show up to work to earn it. Note the 78% of NFL athletes and 60% of NBA athletes that run out of money within just a few years after their playing days are over. Passive income is when you continue to get paid after the work is done. This includes royalties from books, movies, or songs, and also income that comes from real estate or business investments where you don't actually have to be

present to earn it. For example, Bill Gates is still making a residual income from Microsoft even though he hasn't worked there for years. The idea of building wealth through passive income has, it has an understandable appeal, especially for those concerned about whether or not they'll be able to save enough from their work earnings to meet their retirement goals. You know, for example, to generate just $5,000 a month in retirement income from a portfolio, you'd have to amass about $1.2 million, assuming a 5% withdrawal rate, and even then,

you better hope you don't live one day past 20 years in your retirement, because then your money's going to be gone. You know, Investopedia defines passive income as earnings and individual derives from an investment, limited partnership, or other enterprise in which he or she is not actively involved. Popular culture, however, defines it as any money you earn while sitting on a beach sipping margaritas. So which one is it? Or is it neither? I'll tell you, 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 will 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.

And now, back to creating your epic wealth. All righty, we left off with Investopedia's definition of passive income as earnings and individual derives from an investment, limited partnership, or other enterprise in which he or she is not actively involved. And we talked about what popular culture's definition is. They see it much differently as any money you earn while sitting on a beach sipping margaritas. In reality, it falls somewhere in between the two. defining passive income as the money you earn from a project or an investment after you've made

an initial contribution of time or money. You know, most that pursue passive income think that it's all about getting something for nothing. Passive income has a, it has a get rich, easy appeal to it, right? But in the end, it still involves work. Now, the majority of work is up front, but the work never, it never really stops. You know, countless people have tried to create passive income streams only to be surprised and frustrated by the amount of work, cash, and or time that it does take. You know, for passive income to be the most passive it can be, to get to the literal sense of the word passive, you're going to have to think of yourself as a manager of managers.

For example, Richard Branson doesn't run any of the 400 plus companies that he started, but he reviews the numbers regularly to assure proper performance of those companies. And then he calls the CEO if he's got any questions or concern. And whether you are a titan of business like Sir Richard Branson or a lowly landlord just getting started with one single duplex, passive income does not mean uninvolved income. It's this misconception right here that lies at the center of the frustrated investors' frustration. So now that this myth about passive income, now that it's been revealed, don't throw in the towel

just yet. Don't throw in the towel and revert to your old ways. Don't give up in the pursuit of your passive income dreams now that the veil has been lifted. You know, although the term passive is not literal, passive income will still get you much closer to financial freedom than toiling away for active income ever will. So how do you do it? How do you build passive income? Well, the key idea here, it's leverage. You must be able to leverage other people's time or other people's money in order to create passive income. You know, back to Richard Branson, he can run 400 plus companies because he isn't actually running any of them at all. His CEOs are. So again, think of yourself as a manager of managers. Think of yourself as the CEO of your business.

The more you do, the more passive your income will feel. The more passive it will be. Your sustainable passive income. It's going to be a result of you creating or acquiring a product or service that people will continue to purchase from you on a regular basis long after the work it took to put it all together is done. So here's some examples. Some examples of passive income, they include the aforementioned royalties from books, from movies, songs, software, inventions, as well as the internet marketing of information and affiliate products. and dividend yielding stocks and bonds, but dialing in on just the right product, just the right service or just the right investment

with the predictability, the stability, and the longevity to support you into your golden years, that's no small feat. Further, I think it goes without saying that the insane amount of upfront work and study required prior to your income actually becoming passive, that's not going to happen overnight.

So with regard to looking for stability and longevity, let's look at humans basic needs because there's stability there. There's longevity there. They need this. Humans need this. Stuff like food, clothing and shelter. Those inherently embody the necessary demand required for long-term passive income. Additionally, they're really easy to understand.

I like simple. I like simple because if it's too confusing, we know what a confused mind does, right? Confused mind does nothing. And if it's simple, if it's clear and if your mind is clear, and if your mind is clear, clear and focused, you know, you can produce results. So the sustainable aspect of passive income from these sources exists by humans replenishing and maintaining these needs regularly. And unless the need for food, clothing, and shelter somehow go out of fashion, the passive

income derived from these needs can provide for not only you, but for your future generations and future future generations. So let's look at these. Let's look at food first. And we've all heard the failure rates of the restaurant business. They're upwards of 90% right? Yeah, it's a terrible business. Well, that number is actually a little bit inflated.

It's actually wrong. It's not 90%. According to recent studies, the failure rate, it's closer to 59% within the first three years. But still, that's basically a 60% failure rate. And those aren't the type of odds most people are comfortable with when it comes to their financial future. And not to mention, it takes pretty specialized knowledge, experience, and somewhat of an extraordinary effort and financial backing to turn a restaurant into a passive income machine.

Now, with regard to clothing, while the Bureau of Labor and Statistics rate the garment industry with regard to design, wholesale, and retail, one of the top 10 riskiest businesses to start. As last year's pleaded skirts, they might have looked great on you, but your customers, they didn't find them so flattering. Clothing is risky. It only takes one slow season to leave you buried in inventory. and most entrepreneurs, they just don't have the reserves to survive such a season, especially in the beginning.

Let alone when times are good, they don't have the marketing budget to compete with the giants like Northstrom, Macy's, urban outfitters, and gap. So with success in the industries of food and clothing being such long shots, shelter is what most people are left with as their best option for creating passive income. And, you know, it's this perspective that gives credence to real estate being touted as the final frontier where the average person has a legitimate shot at creating real wealth. Real estate is simple. And in comparison to previously mentioned options, the barrier to entry is low with regard to price and experience. And a life-changing passive income can be created relatively

quickly. I mean, it's no wonder that real estate has created more wealth than any other industry or investment vehicle. And the fact that 74% of the nation's wealthiest 1% either made their money or park their money in real estate, that should be a very compelling clue. So just in case now that the get-rich-quick alarm just went off in your head, understand that real estate is not about getting rich quickly. Although it is a quicker vehicle to riches than the alternatives available to most people. It's about getting rich permanently. And you've heard my story.

So I'll share another. The story of a client of mine, Michelle, she's out of San Diego. And when we met, probably five or six years ago, she was working as a personal assistant to a CEO. and to say the least, she wasn't fulfilled. She saw no real future there other than just being a higher paid assistant at some point. And I think the word slave was actually brought up in our initial conversation. And she had just read the book Rich Dad Portad,

and she was inspired by the idea of passive income. And that's what the book does. It inspires people and it basically renders them certifiably unemployable. This book, it certainly turned my life around. But if there's a place where it falls short for most people, it's the how-to part. It gets you all excited about a new way of living, but it leaves you hanging a little bit with what there is to do with your new enlightened state.

And that's when Michelle found me and she hired me. And I walked her through a process of just reducing expenses and inquiring and increasing her passive income. And just recently, she sent me an email sharing how she finally did it. Her monthly passive income has officially surpassed her monthly expenses. And she's no longer working as an assistant. I love it. I love those stories.

But enough about her. I mean, she's great. and enough about her and enough about me. But let's talk about you. And we're going to do 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 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 funds executive summary. Epicwealthfund.com.

Real estate investments involve a high degree of risk. 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. 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.