Epic Real Estate Investing - Turnkey Real Estate - Why Wait? The Journey of a Young Couple...

Episode Date: May 14, 2019

Turnkey Real Estate - Why Wait? The appropriate headline for our youngest clients’ adventure! They thought it would be complicated but having realized that they spent years saving without coming nearly as close as they made through their investments in the last couple of months, Lauren and Nestor were excited to speed it up. They are a couple who is in the process of acquiring their 3rd property this year! Hear their story! Learn more about your ad choices. Visit megaphone.fm/adchoices

As soon as I started working with Matt, I started scaling up my marketing, and he pushed me to start playing with the big guys. And the more marketing you put out there, the more leads you're going to get. I feel like I've developed a friend and a business partner along the way. And just the people that you meet in this industry are everything. Hey, Rockstar Matt here. Thank you for listening to the show. I've got a great one for you today.

And before we get started, though, I just had a really quick question for you. Are you tired of spending more and more on marketing, but not seeing enough success? with your real estate investing? I mean, the market is showing that spending more on marketing just might not be enough. And setting up a really good automated lead machine is almost impossible for the average person to do on their own, especially in the beginning. The real estate investing solution of the future takes things to the next level because now you're contacting leads, now you're setting appointments, and now you're making offers

because of a solid automated lead machine. That's what it'll do for you. It'll put that type of opportunity in front of you so you can take those actions. And before I forget, if you like the sound of this and you want to go deeper with it, you might like to attend the live three-day Epic Intensive Lead Machine Workshop. It's July 18th through the 20th in Manhattan Beach, California. And if that sounds interesting, then head on over to Epicintensive.com and get the details. Epicintensive.com.

All righty, let's get on with the show. This is Terrio Media. So you want to be a real estate investor, but you don't want to do the work. If there were only a way where someone else could do it for you. Now there is. Tune in here each and every Tuesday on the Epic Real Estate Investing show for Turnkey Tuesdays with your host, Mercedes-Tales. Hello and welcome.

Welcome to Turnkey Tuesdays, brought to you by Epic Real Estate Investing. My name is Mercedes-Torres, your turnkey girl. And I am privileged enough to be partners in crime with Mr. Matt Terrio, the gentleman who created the epic real estate investing empire. For our repeat listeners, welcome back. Good to see you again. And for those of you just tuning in to Turnkey Tuesdays, I created this show to really help that busy person who understands the importance of real estate just doesn't have the time or the desire to learn every single nuance there is to learn about acquiring real estate investment properties. So on today's show, I invited a very young couple to join me to share their journey as I truly

believe they are my youngest couple. Now, they're two very busy people. He's an electrician. She is an office manager. And they're sharing their journey about acquiring their first real estate investment property. Now, this husband and wife team agreed and came on the same page about a year ago. And I actually want to say nine months ago. And as of nine months ago, and today, they're acquiring property number three with cash flow savvy. So I invited them to share their journey and their thought process of how they did it and what got them to step over the edge to make their first step towards financial freedom. So, ladies and gentlemen, without further ado, help me welcome Nestor and Lori Carlos to the show.

Guys, how are you? Good. Thank you. Fantastic. Well, guys, so tell me all about your journey. Tell me all about you first. So why don't we start off by introducing yourself. Ladies first, Lori, introduce yourself, please.

Well, my name is Lauren Carlos. I'm 28 years old with my husband, and I live in California. We are doggy parents, two very active dogs. I'm a full-time office admin assistant. My name is Nestor Carlos. I'm a full-time electrician, and on the side, I have way too many hobbies. I love it. Way too many hobbies.

I want to hear about one hobby. The most exciting one. The most exciting one is a car that I've built in since I was in high school and it's still in the garage and it's still not running. That sounds like a problem. That doesn't sound like a hobby. I'm sure Lori would agree with that. Awesome. Well, guys, so tell me, how did you guys find cash flow savvy and epic real estate?

So I found your guys' podcast after a coworker would not stop talking about the book, Rich Dad, Ford Ad. So after he talked about it so much, I asked us, let me borrow it. I read it in less than a week. Then I went on Spotify, and I just typed in real estate on the search engine. And your guys' podcast came up. And there was a couple of other ones on top of you guys. And for some reason, I clicked on yours and started listening and couldn't stop talking about it to Lori.

Oh, I love it. So see, it's contagious. Yeah. So after he was amazing about the epic. podcast. I wanted to check it out for myself. And so I started listening to a couple episodes, and I came across the Turnkey segment. And that one really intrigued me. And this concept of turnkey was completely new to me. And it made, and starting to invest a lot more achievable for us. I've kind of like talked about it before. And I didn't have much interest from Nestor because

it seemed like a whole other world for us. Like, where do we start? And so, once I got this idea of turnkey, I started doing my research, I found about all problems. And we came to the conclusion that this might be our way in, that this was going to be how we were going to start investing. I love it. I love it. So when you said, you know, investing was a whole new world. It really is a whole another world. It's a lot of digging. It's a lot of due diligence. It's a lot of everything. but it was so new to you because when you guys first came on board, this was the first interaction that we've had and that you had when it came to real estate investing. So why were you so interested in real estate investing?

And I'm going to start with you, Lori, because in the transaction with you, I work with you more than I do with Nestor. And it's probably because you might have an office job and Nestor's more hands-on. I would assume that that's the case. But tell me a little bit more about that. Well, as my younger child self, I kind of saw the success that my landlord had in his many assets. We rented one of maybe a very large number of properties that he had that he rented. And my idea of investing in properties and run out was very hands-on.

We would be the landlords. We would take care of everything. and it would be a full-time job like it was for him. He didn't have any other streams of income. He didn't have a full-time office job that he went to every day. And so for me, if we want to start doing that, that's going to have to be our full-time job. Wow. Okay, so that's a clearer picture.

I didn't know this about you. And Nestor, for you, why were you intrigued? So you had just read the book, Rich Dad. You couldn't stop talking about it at work. And then you talked, Lori's ear off. But what made it so attractive to you? The main thing was how you guys are always talking about streams of income instead of trying to make one giant pile of cash,

which makes so much sense because everybody thinks it's all about saving pennies and saving this, saving that, when really you could just invest what you have and make you more money, which just made a lot of sense. Yeah, it absolutely makes so much more sense. Okay, so fast forward. You found the podcast. It made sense for you.

did you interview other turnkey operations? Like, how did you go about choosing cash flow savvy? So we did some Google searches after we listened to you guys. We did find some other ones that we interviewed, we emailed with, but guys would respond way faster when it came to emails, especially phone calls also. But mostly the emails, some people, they wouldn't email us back for like two or three weeks.

We were totally forget about them. And then they would answer our questions. and you guys were just, they'd be like a day, maybe two. You guys would get back to us, answer everything, all that we had. I'm a little anal on communication, if you can tell. So, yeah, I always feel that I'd rather over-communicate than not communicate enough. So, in fact, I just disclaimed that I was a little behind on email. So to our listeners that are listening, if you email me, I'm a little behind on getting to you, but I'll get to you.

Awesome. So we answered all of your questions. I was introduced to Lori afterwards. So was it difficult for you Nestor to tell Lori this is what we're going to do and how we're going to do it? Or tell me what that conversation was like because so many people don't have a partner that's on board. So how Nestor did you encourage Lori to consider what you wanted to do? So that was actually the easy part because ever since I've met her, she always wanted to invest in really. estate. And back when we met, I mean, no sense to me. And I was like, why would you want to buy houses?

Why would you want people living in your house? And she did, she had that, rich, that or that mentality way before I did. And I just never really paid attention or, you know, like, gave it too much thought. I just thought she was like talking nonsense. And then after I read the book and I was like, whoa, she has been talking about this forever. So the easy part was telling her, hey, let's start doing some. I love it. I love it. So it was the other way around. So Lori, I'm going to ask you the same question. How did you get him to read the book and just to start thinking outside the box, so to speak? So I really love that he would come home and relay these conversations that he's having at work with his coworkers about real estate investing.

And when he read this rich dad, poor dad book and he started come home like, okay, let's look into how we can start investing. That's when even though I've always wanted to do that, like I said before, it felt like it had to be a full-time job for us. So I was like, blow down. How are you going to pinpoint the location we want to be in? How are you going to, like, we have so much research. Like, it's years away. And when I got on board with a podcast and I found out this turnkey, it blew my mind. Because I was like, we can do this now.

Yeah. Awesome. Awesome. We don't have to come in. And we have this guidance. Yeah. Yeah, yeah. I do spend a lot of time making sure that you understand the step by step

process. So I hope I was able to achieve that. So tell me guys, how many properties have you acquired through Clashflow Savvy? So we currently have two properties with you guys and in line for another one or looking for the next one. Yeah, you guys are in the queue for property number three. So walk me through the process of property number one and number two. What happened? What was that like for you? So after we got pre-qualified, which was a breeze, we, we, chose their property, our first one, and for us that was in Alabama. Right then that those steps started coming in, we got introduced to Stephanie in Alabama. She was great. And we just, we had someone updating us every step of the way. So I never had to, as me, I'm always like, okay, how about this?

What if we forget this? And I'm always thinking about the next step and working with cash flow savvy. I never had to do that. I never missed this up because then as soon as I started to get like, what about the management company. They stepped in an email to me. You never have to chase anybody down. That is there for you. So during the rehab process, we constantly got updates and they let us know what they were going to do, when they were going to put floors in, how far out we're going to be. Yeah. And what was for me was it seemed like there was this back end happening that we didn't have to worry about either. So I was working with the lending property and they were helping me get all of the paperwork together so that we can close.

And as soon as a property was done rehab, the lender knew before I did. The paperwork was already starting to happen. And right when the property was ready and we got that inspection, we were basically ready to close. Yeah. We go out of our way. Yes. Yes, that is correct.

We go out of our way to ensure that we inform you every step of the way, but a lot goes on behind the scenes, unbeknownst to you, a lot goes on behind the scenes so that there is no wondering. I never want my clients to wonder, is this being done? When is this going to happen? When is, you know, what's the next step? I'm really, really big on making sure we overcommunicate. Awesome.

So Nestor, tell me, when you got the inspection report, since you're an electrician, did you look through the inspection report? How was that for you? Because I'm sure you're a picky. Yeah, I did look through it and there were some questions on it. But I think everything was already, like things I caught, I think we're already caught on there. So it was kind of just.

I agreed with how the inspection went and how it turned out, basically. Yeah, we do the inspection report and then we use it as a guideline to make sure that we dot every eye and cross every T and make sure that we didn't miss anything so that you don't have problems with that down the line. Yep. Awesome. Okay. So then you jumped into property number one.

I remember you guys closed and you were so happy. And then like, I don't know, a week later, you were like, you were like, like ready for property number two. Tell me what, what happened? What transpired in that one week? Because usually people wait several months and you guys didn't wait at all. Before I knew it, you were knocking on my email, so to speak, saying, okay, we're ready for property number two. So what happened there? You guys just basically made it so easy and so smooth from beginning to end that we were like, why wait if we can jump in and now? Let's just do it now. We know that the interest rates we're going up at the time.

So we were like, well, let's see if we could get another really good deal before the interest rates go up too high and it's not really worth it. We really wanted to have our money work for us because we have this money sitting there in our savings and we felt safe but just applying our first property, we realized it could be doing more for us. Absolutely. Absolutely. So that made you jump into property number two. And now you're on property number three.

I love it. I love it. You know, I do remember, you know, you chose property number one and you chose property number two. And then just recently, you chose property number three. And I said, I don't think that's a good fit. I thought about not saying anything, but I did say something because had I done investing all over again, I wish someone would have caught my mistakes before I made them. So I want you to share a little bit about that.

Well, we love the property and we were set on it. But I do feel like I have a lot of confidence in you and I love that handholding in the beginning. So I appreciate any input that you have. And you always have a reason for everything. If we wanted to call and talk to you about it, you would definitely explain everything in detail that we don't have a sense that we're wasting your time. We can always reach out to you. And that's why I have this huge confidence in our working relationship. And that's why I have this huge confidence in our working relationship. I do trust your judgment. Thank you so much. When my clients get involved, I really go out of my way to understand why they're investing. I really want to understand your goals. But on that third property that you said yes to, and I said, please reconsider, is because you were branching out into another market. And I think Nestor, you emailed me and you, I might, you know, I might make them upset.

And I gave you my opinion. And it was basically you're just starting to invest. And I don't want you spread out through so many markets. And I think it's just too early in your investing career to have properties all over the place. What was your thought process when you read that Nestor? First, I thought, why would I not want to be in all these different locations? Just in case one house goes up or the market goes up or down. And I just thought about it. Like, why would we not want to be in? different locations, just in case one house goes up or the market goes up or down. I just thought about it. Like, why would we not want to be in it? But then the more I thought about it, I was like, you guys are the experts. So let's just go with it. We'll do what you guys say.

Yeah. Well, on property number four, now you'll have another market to choose from. But spreading yourself, like, one property across five different markets, it is really a recipe for just a lot more unnecessary work. but we've worked really hard at diversifying your portfolios within the market. So you have a very well-balanced portfolio, no doubt about that. You own properties that I would own for myself. So I love that.

I love that. Cool. So you are working on property number three. Tell me about property number one and two that you acquired. Tell me a little bit about your numbers. Do you know them? I don't know them off the top of my head. but I know we are like around 10% return on and on both.

So I think that's like something that we shoot for personally. Yeah, you guys are absolutely right. You're roughly hovering between a nine and a half and a 10%. And it's because you guys lock these properties at a super low rate. You came in at just the right time. So you were just tratching the surface of a nine and a half, 10% cash on cash return. And so are your tenants already moved in? Tell me about that. So for our first property in Alabama, we got tenants in within the first month. So before we made our first mortgage payment, we had 10. That was awesome. That was what I was aiming for. And the property manager really worked with me. They kept me updating because they told me that it was wintertime. It was the holiday coming up. And usually people stay put. They stay where they are. They're not going to be moving in or looking for property. And so we were so blessed. happened for us. Someone was looking and they moved in right around Christmas time.

I love it. I love it. That was my mindset moving forward that hopefully we always get tenants within that first month. For our second property, we got tenants in the week that we closed. Yeah. So just right off the bat, we were getting cash flow. And that's how I like it. I like you guys to close with tenants. Doesn't always happen like that, but we do strive to place tenants generally within the first 30 days of closing. So I love it, guys. Well, it's no wonder you're back in the queue for property number three. I'm honored that you've chosen us to walk you through your journey. So now tell me, you guys have had the whole full-on experience from choosing a property that's under rehab, waiting for the rehab to be complete, then the inspection, then closing, then place you.

of tenants. What would you say has been your biggest lesson during this whole process? I think the biggest lesson for me is how easy it actually is. Like before actually doing it, everything sounded so confusing. The steps, I didn't know what was first, what was next. Does this happen at the same time as this? So after seeing how smooth everything goes and how it goes from one step to the next, like flawlessly, I just, yeah, that's been the one thing. Awesome. Awesome. So Lori, what would you do different? If you had to start all over again, what would you do different? Honestly, it'd be nothing. I mean, this whole process was so smooth. And buy property number two, I felt like an expert. It was like a huge gap between my first one. I was like, oh my God, what's going to come next?

Like just learning all these steps and buy property too, which is still a huge investment. It's just a huge step. We felt like pros already. So I don't really have anything that I would change or go back on. I love it. I love it. So, Lori, having said that, what advice would you give a new investor that's considering doing a turnkey property? What would you say to them?

I would say go for it. It's easier than you think. And I wouldn't wait because these opportunities are going to slip by. and if you have the opportunity and the money to do it, you should definitely do it now because like I said, we spent our whole life saving and we didn't gain nearly as much as we have just in the last couple months from investing. Oh, that's music to my ears. Oh, it makes me so happy to hear that.

And this, ladies and gentlemen, is the reason why we do this. I absolutely love it. So Nestor, I'm going to have you complete this sentence because you were the one that was brought into this. Really, I didn't know this until now, but you learned this after Lori had already been talking about this. But I'm going to have you complete the following sentence. I almost didn't work with cash flow savvy because? Because I thought it was going to be a lot harder than it actually was. I love it.

Need I say more? You guys were absolutely awesome. And I really want to thank you for coming to the show. I know that being in the spotlight is not your favorite thing to do, guys. And I really appreciate it. But one of the reasons I interview our clients is because I remember speaking with Nestor the first time, and it was so new and you were so afraid and you sounded like you were about to achieve the impossible and you weren't sure about it. But I hear you guys now asking me questions about the closing and the insurance and property

management and tenant placement. And it makes me so happy. It is the reason why Matt and I do what we do is to make a difference in people's lives and to create financial independence. So guys, thank you so much for opening yourselves, your homes, your phone lines and sharing with you because I know that this interview is going to resonate with at least. least one person and you've made a difference for that one person. So thank you so much for joining us and for our cash flow savvy people and followers, feel free to do what Nestor and Lori did. Go to cashflow savvy.com. Download the frustrated investors guide to passive income or shoot me an email, Mercedes at Epicrealestate.com. Both Nestor and Lori did say that I do answer emails and I really do. So I really

hope to make a difference for you. And thank you so much for joining the show. Guys, thank you for being my protegees today. My partners, I look forward to helping you close your third cash flow savvy property. Take care, buys. Thanks. Thank you. Bye. Does your money work for you as hard as you do for it? If not, no worries. You do not have a money problem. You merely have an idea problem. We're cashflow savvy.com. And we'd like to share a new idea with you around income, real estate that can transform your financial future and accelerate its arrival. Go to cashflowsavvy.com and download a free investors package. Cashflow savvy.com.

You do not have a money problem. Merely an idea problem. Cashflow savvy.com. More ideas, less worries. Cashflow savvy.com. This podcast is a part of the C-suite radio network. For more top business podcasts, visit c-sweetradio.com. See?