Epic Real Estate Investing - Two Simple Steps to Wealth | Episode 157

Episode Date: May 18, 2015

As you probably know by now, real estate investing offers the greatest chance for the average person to achieve financial freedom.  In fact, attaining that wealth only takes the adoption of 2 extremely simple philosophies.  While it would be untrue to say they are easy, they are certainly simple, and today Matt is breaking it all down.   Also on today’s episode, Matt launches a new segment called “Shred the Threads” where he refutes bad advice offered on popular real estate investing forums.  Enjoy! ------- 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

This is Terrio Media. Podcasting from Terrio Studios in Glendale, California, it's time for Epic Real Estate Investing with Matt Terrio. Yeah. Hello. And welcome. Welcome to the Epic Real Estate Investing Show. This is the place where I show people how to escape the rat race using real estate. All you got to do is just shift your focus from making piles of money to making streams of money.

Change that one thing, just one time. and you are on your way to financial freedom. It's not the most exciting path. I promise you that. It is not very exciting, but it is the fastest. And once you get there, life then becomes exciting. And that's why we're doing this, right? Just to support our life,

to support the lives of our family and those that we care about most. That's what it's all about. All right, so I got a very cool story for you. Straight from the Chronicles of the Epic Facebook group, Josh, Epic Pro Academy member, just got a deal under contract, and his buyer is using Epic Fast Funding to make that purchase. Small world, right?

Further, what Josh has done, he's gotten a little creative with it now, and he's recognized an opportunity here, and he's kind of crafted a new pitch to his buyers. And it goes something kind of like, if I could find you an investment property that you could buy with no money out of your pocket and a contractor to do the work, that would guarantee an easy flip and profit, is there any reason? why you wouldn't purchase one with me here today. And the obvious answer would be, no, Josh, I can't think of a reason why I wouldn't say, where I wouldn't purchase this property from you, why I would say no to such a great offer.

And what Josh then does is he directs them to epic fast funding to make it happen. Very good, Josh. I love it. And what Josh has stumbled on here, whether he realizes it or not, it's a very powerful business consulting concept or a consulting course. question. And what I mean by that is a popular question a business consultant may ask their client is, if you weren't paid until your customer got their desired result, how would your business change? You get that? If you weren't paid, that means you are not going to see a dime

until your customer gets what they came to you for until they get their desired result. If you weren't going to get paid until that happened, how would your business change? And I asked that question to myself at least two or three times a year, and we really brainstorm on it here in the office. And every time we do it, it creates, there's a breakthrough is created. And our service and our product or our service, whatever, it go, it elevates, definitely. And what this question does is it really just causes you to think about not only, you know, It's not just about making your customers experience better. It's about getting your customer to the finish line so you get compensated.

Just kind of removing barriers and making it easier for your customer to get what they came to you for. And what it does is when you start doing that, it starts attracting more customers. It helps you stand out above and beyond your competition. And in the context of this show, it helps you close more deals. I mean, it's just like, you know, when you go to Macy's or you go. goes to Nordstrom, and they ask you if you want to open up a credit card right there when you're ready to make a purchase. Because they know if they help you get access to more money, you're likely going to buy more stuff from their store. So it helps you close more deals.

That's what Josh has kind of latched on to here. And it's, it's an very indirect way of going about it. But that is indeed exactly what it does. It's helping your customer secure the funds to purchase your product or service. You will close more deals if you make that happen. So nice work, Josh. I love it. And, you know, since we're speaking of Epic Fast funding, we're quickly approaching the $4 million threshold, meaning almost $4 million has been funded to this community. This community right here.

Epic Fast funding, it's changing people's lives. You know, this past week, Kenny posted in the Epic Facebook group. And I'm going to paraphrase just a bit to put his comments in context. But he said, my wife and I combined. for more than $200,000 coming into our business because of Epic Fast funding. It's been an unreal boost to our business. It's been a new beginning of a better life. We've got a deal closing this week as soon as funds are liquid and another soon to follow

after that. So congrats to you, Kenny, and congrats to you and your wife. Sounds like this is just what you needed. And those are two very good examples of what these types of funds should be used for. You know, if they, if they're going, these funds are going to help you improve your business and take you to that next level, then that's what they should be used for, okay? No shopping sprees, all right, no vacations, no lavish nights out on the town. That's not what these are for. It's to help you with your business.

And if you do need funds for your business, for this purpose, whether it's to fund a flip, whether it's for office equipment, whether it's for marketing materials, whether it's to fund your direct mailing campaign and drive those leads into your business, just take your credit score over to epicfastfunding.com, state your income. and in as little as seven days, you can have the funds you need to fuel your business to your next level, to your next level. Go to epicfastfunding.com.

All righty, so lots of exciting things going on here in my real estate business. I'm going to bring you up to date because I know a lot of you are concerned with your marketing and the response rate that you're getting from your direct mail. And I've started marketing to a brand new market. We've had to branch out and look for new. areas because, you know, I'm right there in the trenches with you. We're feeling the slowdown a little bit. However, I feel it bouncing back. And I told you all six months ago, if you stuck with it, it's going to start happening for you. Okay, we go through these different little cycles. We go

through peaks and valleys. We go to this thing kind of ebbs and flows, the response rate of your direct marketing. And if you just, you just got to be consistent with it. Okay. And when it, when it comes back, you're going to be at the front of the line to receive it, to receive that, when it does come back, it's going to hit you first. Okay, so what I've done is I've started marketing to a brand new market. And my first mail piece, it just landed last Wednesday. I sent 2,600 pieces, just a small little test, less than 3,000 pieces. And it was just a postcard, a little ugly, spammy postcard.

And I've received, as of the recording of this show, it's just been four days since it landed, 212 calls. That's just a hair over an end. 8% response. That's pretty strong for a postcard in today's environment. That's really strong. And if you've liked to see what I'm actually doing and what I've done this far, Academy members, you can log into the Academy and click the button in the right hand column

that says $10,000 in 30 days. That's where I'm demonstrating the Epic Fast Formula. Go there. And I'm recording this entire process. So you can look over my shoulder and just watch exactly what I'm doing on my computer screen. You can watch me what I'm doing step by step. That section, it's not complete yet, but there are four or five videos right there that will show you how I got this strong response.

And along with the videos, there's the resource links and the downloadable documents that I've used, even the exact postcard that I used for this last mailing. It's a PDF. You can download it and you can use it yourself. So that's inside of the Epic Pro Academy. And like I said, it's not done yet, but rather than waiting until it's. done to to reveal it. I just, you know, I'm just putting up one video at a time as I'm actually going through

the motion. So you're watching it in real time, all right? And so, uh, let's see what else? I got a great question via email this past weekend. And, uh, it was, to me, it was such an obvious answer, but there's no such thing as a dumb question, unless you ask that same question over and over and over again. But, uh, there's no such thing as a dumb question. And, you know, I, it was just, it was so obvious to me.

but as obvious it is as it is to me, I realized that I've never, ever explained it here on the show. Nor do I think I explain it anywhere inside of the academy either, not in the way that it was asked. This email comes from Wyatt, he's a brand new academy member, and he signed up for the email coaching support, and through that support, he wrote.

I watched your three videos at free real estate investing course.com, and when I saw the third video about making an offer, I saw you subtracted the profit on the offer. I'm confused on how one is able to collect money. I could really use some further explanation on this. So that was the question. That's what he wrote. And I was kind of scratching my hands. Like, what do you mean? How do you collect the money? And I started thinking about it's like, well, maybe it's not clear. So that's actually a really good question. As simple as it may be, but, you know, how do you collect the money by doing this? Where does that come back into the equation?

I mean, the more I think about it, the more I can see where someone brand new could get confused. you know, in the quick formulation of your all-cash offer, the last thing you do is subtract your desired profit. Where does that actual desired profit come back into the equation? How do you collect the money? So, great question. How do you get paid? I mean, that's what we're doing this for anyway, right?

So let's go over that real quick. The formula for crafting your offer goes like this. You take fair market value, and you multiply that by 70%. Why 70%? Well, that 30% difference. That's the 30%. That represents the 30% that you're going to be leaving in place for your end buyer.

If you're going to be wholesaling it, most likely your buyer is going to be another investor, you've got to leave some money in there for them or else they're not going to buy it, right? They're an investor. They're here to make money as well. So you can't suck all the equity out of that unless you're just going to go retail. But if you're going to wholesale and you want to sell it quickly, you've got to leave some equity in there. So that's why you take 70%.

You're leaving 30% for your end buyer. Now, once you've got that number, you subtract your estimate of repairs. Okay, whatever you think the repairs. are going to be you want to subtract that number from that 70% of fair market value number. And then lastly, you're going to subtract your profit. Don't forget your money. All right? You got to make a room for your money in there.

And once you go through that whole equation, that gives you your all cash offer. So if a property is worth $100,000, you take 70% of that. 70% of the $100,000. That's $70,000. Okay, you follow me? Simple math so far. $70,000. Now subtract the estimate of repairs.

And to quickly do this, just multiple. $10 to $15 per square foot of the property. I use 10 for a regular rehab, $15 for a heavier rehab. And don't worry about being exact, though. Don't get stuck here. You're just looking for a ballpark figure. If you're off, you can always renegotiate this number later. All right? This is just to get you in the ballpark so we can get this property in our contract. So if the property is a thousand square feet, multiply that by $15. And that estimate of repairs would be $15,000. So you've got $70,000 minus $15,000. That's the repair amount.

That gives you $55,000. Now, subtract how much you want to make. All right? This is what you want left for you. So let's say that's $10,000. So we take $55,000 minus $45,000. That gives us $45,000. That's what you will offer the seller.

$45,000. That's what you're going to offer to purchase that property from the seller for, $45,000. bucks. Now, to collect your profit, to collect your money from this, you're going to add back your profit onto the $45,000. Got it? So you're going to add your profit back onto the $45,000, and you're going to market that property to find a buyer at $55,000. That's what you're going to sell it for. You're going to sell it for $55,000. And inside the academy, there is a 15-point marketing checklist of what there is to do to market the property in search of a buyer. And let's see, I'll run through that really quickly right here.

I'm going to run through all 15 steps for you. So the first thing that you're going to do, once you've got this property under contract, you've got the property under contract for 45,000 bucks. You've got it under contract. Now you're going to start marketing it. So the first thing you want to do, you want to get keys and you want to secure the property. All right, that you want to do that. So you can have access to the property to show the property to your buyer. Then you want to take photos and take a video if you can. You can take photos of the property. Now you're going to determine your price, right? So you're going to take your $45,000 you purchased it for. You're going to add your $10,000 of profit on it. So your price is going to be $55,000. Now you're going to write a property

description. And I recommend that you write a few of these. You want to write a description of the property. And you want to kind of do it in different formats. And I'll explain to you in just a second as to why. You're going to write a full property description like in paragraph form and then maybe one in bullet point, bullet point form. And then another one in paragraph bullet point hybrid type form. Okay. So you just want to use different words and you want to restructure those words. And so you got three property descriptions. Now what you want to do is you want to create 15 different headlines for that property. Okay, 15 different headlines. And when you, when you create those headlines, keep in mind what's in it for the buyer. Okay, keep in mind what's in it for

the buyer. You want to sell equity. You want to sell discounts. You want to sell opportunity. For example, single family home 30% below market value. Okay, that's selling equity. You just said it's 30% below market value. Or say something like to the effect of dirty fixer, pick up where I left off, my loss, your gain. All right? So you're selling opportunity.

You're saying, hey, I lost a bunch of money. Just pick up where I left off. You get to capitalize on it. Just cash me out type message. So you want 15 of those types of headlines. So once you've got that, I want you to put together an email message. And I want you with one of the, you choose one of the headlines and one of the property descriptions.

And you're going to email that out to your buyer's list. And if you have the ability to text message your buyers list, you want to do that as well. Okay. So that's the first thing. You're going to email and text message your buyer's list. Now what you're going to do is you're going to go over to Craigslist. Okay. And what you're going to do is you're going to post a, choose one of your headlines and

one of your property descriptions and post that ad on Craigslist. You're going to do that at 8 in the morning. And then you're going to do it again at 12 o'clock in the afternoon. So you're going to pick a different headline and a different property description. You're going to post that at 12. And then at 5 p.m. you're going to do it again. So you're going to do it three times a day, just changing the combinations of headlines and property descriptions.

You want to keep on rotating that. You want to do it at 8 o'clock, 12 o'clock, and 5 o'clock every single day. And the reason you're going to keep on rotating it is if you post the same ad, too many times, Craigslist is going to shut you down. So you don't want that. Okay, so that's why you want to keep it new and fresh. That's the reason for creating all of those headlines and creating those property descriptions. Then you're going to go over to backpage.com and you're going to do the exact same thing.

Same thing as Craigslist, okay? Then you're going to go over to postlets.com, P-O-S-T-L-E-T-S dot com. And you're going to post your property there. And there is what that's going to do, it's going to syndicate your property out to, I don't know, what the number is right now. it's 20 to 25 different real estate websites. So you post on one site and it goes out to 25 different sites. All right. Now, if you haven't sold your property yet by now, because a lot of times that's enough exposure.

If you truly have a deal, that's about as far as you're going to have to go. But if you want to keep on going, and I recommend that you do, I recommend that you keep on going until your property is sold. You're going to post an ad to Facebook on your Facebook page. If you don't have a Facebook page for your real estate company, you should create one. because once you put that Facebook, or once you have that Facebook page, when you post that ad,

now you can boost that post, and you can boost that post to your target audience. You can boost that post to all Facebook users in a certain zip code or a certain city or with a certain interest.

Okay, if they all belong to the same RIA club, you can post it so it just hits their Facebook profiles. Okay, so that's, but you can't do that on your personal profile. You need an actual company page. Then you want to, if you took video,

you want to go ahead and post your video to Facebook.com and YouTube.com. All right. And do it with the property dress. Make sure you got your headline. And so that comes up in the search results. Then if you are doing this in your own neighborhood, your own backyard, or maybe you have

some boots on the ground and you're doing it virtually, put a for sale sign at the property. Now, some neighborhoods, you might not want to do this. Some neighborhoods, yes. It depends on, you know, what type of neighborhoods. Some neighborhoods, if you post the for sale sign, it's an indicator that the property is vacant and it's kind of an invitation for the property to get broken into. So be careful with certain neighborhoods. then what you want to do is you want to create a property flyer.

So take your best headline, your best property description, your best pictures, and create a property flyer. You want your phone number on that flyer. You want your website on that flyer. I would even put your picture on the flyer and make it very personable, very nice and neat and just very professional looking. And then send that direct, send that via U.S. mail to a targeted cash buyer's list. And I've shown you how to do that a couple times in the academy and even on the free webinars

that we've done, how to pull out the cash buyers in any given neighborhood, and you can mail that property flyer to them. What we like to do is we like to take a little yellow post-it note and just say, and write on that post-in note in handwriting, hey, I thought you might be interested in this. Or, no, excuse me, hey, I thought you might be interested in this, and then sign the letter J. And what that says, it just kind of makes it personable. They're going to scratch their head. They're not going to know who it's from. Everybody knows somebody with the first initial J. So that's why we do that and that's how we market through the mail for a buyer. And then what did you want to do? If you still have your property, you haven't sold yet, you're going to attend all of your

real estate investor meetings. You're going to attend your meetings and when they do the wants and need section, you're going to stand up, hold the microphone, and you're going to talk about your deal. You're going to say, hey, I got this three-bedroom, two-bath home in South Indiana, and it's for sale for $55,000. It rents for $700. That's going to give you a 13% cash on cash return. if you want some more information on this, meet me in the back of the room after the meeting. Give them a call to action to meet you in the back of the room. Don't stand up there and bore them to death with your property, okay?

Just give them the facts and then tell them what's in it for them. Hey, there's a 13% cash on cash return if you hold on to it. If you want to sell it, it's actually worth $100,000. There's $45,000 of equity. I'll be in the back of the room if you want to come get a flyer. Don't say there's going to be flyers over there at the table and don't do all that. You're going to stand in the back of the room with your flyer. They're going to come to you.

It's going to save you from having to do all that networking from the entire group. I mean, we've got some really huge groups here in Los Angeles, and there's no way you can go and talk and create a relationship with 100, 150 people. And quite honestly, you don't want to create a relationship with all of them. You just want to create a relationship with the serious players. So by giving that call to action at the front of the room, the serious players are going to come back to you. Got it? That's why you do that. There's a lot of reasons to do that.

But that's one of the bigger ones. Now, if you still have it, then go ahead and try listing it with a real estate agent and see if they can get, they can get, um, get, um, get. to get that property sold for you. But typically, if you have a real deal, you don't have to really get past step five, six, seven. I guess let's see seven or eight. And that property should be sold, okay? If it's a real deal.

Now, if it's not selling, you might want to go recheck your numbers, okay? We've gone over that several times here before as well. Now, once you have found a buyer, you're going to want to open escrow, of which the buyer's money is going to pay the seller. You're going to use their money, and you can do that through a double Sorrow. You can do that through an assignment of the contract, but it's not your money that's going to pay the seller.

The buyer's money is going to pay the seller, leaving you what's left in the middle. You're $10,000. You sold it for 55. You're buying it for 45. There's 10 grand in the middle. All right. There might be some closing costs and stuff in there you may have to pay, but basically the basic math is 10,000 bucks left over for you. You will receive your money directly from the escrow closing agent.

That's how you collect your profit. All right. So mystery solved. There are a lot of visuals involved here. I ran through this very quickly, visuals of which I really couldn't do justice here in an audio format. And that's why I put together that free course. And that's how Wyatt found me.

And that's how he became a member of the Academy. So I put that together for you for free so you can exactly know or know exactly how to do this. So if you've yet to access that course, you can at free real estate investing course.com. Go to free real estate investing course.com. And at the end of the course, I am going to extend an investment. invitation to you to join me and becoming a member of the Epic Pro Academy. But it's not required by any means. Okay, you're not going to hurt my feelings if you don't join. The course is whole and complete and will give you all the information that you need to start making money in real estate,

whether you decide to become an academy member or not. All righty. So this past week, I did a little bit more, not a little bit more, just I did some internet surfing. I don't even call it surfing anymore. I haven't heard the word surfing the internet in very long time, but I guess I was browsing the internet. I'm really got hooked on going through the real estate forums because it's actually rather comical. I just want to see what people are talking about and the advice that's going back and forth. And most of it's good. Most of the people there are very helpful.

And most of the people know what they're talking about. But boy, it's pretty entertaining when you find some people in there that are so hardwired and set in one way. and they try to dole out advice on something that, you know, that's actually somewhat can be deserving to the community. And so what I've done is I've decided to make this a regular segment here on the show. I'm not going to do it every episode, but when I find something good, it's time for me to shred the threads.

In a world where the Internet has made experts of us all and provided us a platform to share that expertise, we must guard the information we consume like never. before. For what we think about, comes about. There is now a man on a mission to protect you from stinking thinking. It's time for Matt Shredd the Friends. All right, so here's the post.

It says the person asking the question. I've been studying real estate for the past two years and I've attended numerous real estate seminars and local meetings. What advice do you have about purchasing my first property? I would like to see what options I have regarding no money down. and without use of my own money or a loan, is this even possible? All righty? So that's the question.

Someone brand new been studying for a while and they're ready to pull the trigger and they want to do this with no money. They've heard about it and they kind of just want to know if this is possible. So they fired their question off to the community and here's the response. There are many responses, but this is the one that stuck out. The person responds, why would I sell her finance for no money down when I could sell 100% right now for top dollar or seller finance and still ask for 20% down. Selling is easy today.

All right, so let's look at this. And I hear this all the time. And this one actually really drives me nuts for a couple of reasons. First, when someone begins their advice with a hypothetical, why would I, I need to listen no more. You aren't selling a property, Mr. Forum poster. So why does it matter what you would do? It doesn't matter what you would or would not do.

So that's the first thing. Second, here's a major rule, major rule of creative real estate investing. And if you don't follow this rule, it's not going to work for you, all right? That rule being, do not negotiate on the seller's behalf. It doesn't matter what you would or wouldn't take. It doesn't matter what you or you would or wouldn't do. The seller isn't you. And the seller isn't in your situation.

so it doesn't matter what you would do. Maybe you wouldn't take it. But just because you wouldn't doesn't mean the seller wouldn't. You know, you're shutting off your possibilities by thinking this way. If you were to walk around with this particular thought, with this type of logic, you will never get a no-money-down deal. You'll never get one, will you? No.

Not if that's your rationalization on the subject. Not if that's your thinking. That's not the millionaire real estate investor thinking. So, here's a story. It's not a zero-down story, but the principle is exactly the same. Last year, I purchased a property from an academy member. It was a smoking deal, smoke and deal for me at the price I paid. I paid $29,000.

And this was a great deal. And I turned around and I sold it for $46,000. So that's that. I made $17,000 on this deal. But guess what the academy member had it under contract for? he had another contract for $2,700.700. I paid $29,000 for it, and I sold it for $46. Why would anybody sell a $46,000 property for $2,700?

Why would you do that? Or would you? I don't know. I can't answer that for you. I don't know you, and I don't know your situation. just like you aren't your seller and you don't know your seller situation. I mean, you may be thinking, why would anyone in their right mind sell a property for $2,700 when they could sell it on the open market for $46,000?

It doesn't matter why. It's merely your job to work your numbers, numbers that work for you and your strategy, numbers that work for your financial plan, work that number out, and then submit the offer. You know, amazing stories like these, real stories like these, will never be your story if you base your actions on what you would or wouldn't do. You know, when you think about it, would you respond to a junky, spammy-looking pink postcard that lands in the mail and says they wanted to buy your property? Would you respond to that? Would you call that phone number? I wouldn't.

And I don't. I don't, in fact. And I get a bunch of them. I'm an absentee owner. I'm on a lot of people's real estate investors mailing lists. I don't respond to their mail. They go right into the garbage can. I don't respond, and I can't imagine that I ever will.

Now, if I operated from this advice givers logic, I would never send one of these junkie-spammy-looking postcards, would I? I mean, if I don't respond to them, why would I think somebody else would? If that were my thinking, I would never send one of these ugly postcards. But that's exactly what I did last week. Bottom line here is, don't refrain from asking for something. In this case, a no-money-down deal.

Just because you wouldn't give somebody that no-money-down deal. Or because you don't know anybody that would. Don't negotiate on the seller's behalf. Thank you, experts. Please keep your heads in the clouds and your fingers on the keyboard so Matt can continue to Shred the Threads. Getting wealthy. We all want it, right?

We all want to get wealthy. That's why we invest in real estate because of the income potential, because of the wealth creation aspect of real estate. We all want to get wealthy. Well, I'm going to give you the two steps to getting wealthy. and they apply whether you're an aspiring real estate investor or an entrepreneur of any industry. So let's go over those, okay? Those two steps, the two steps to getting wealthy. Step one, stop doing what poor people do.

Stop doing what poor people do. That's pretty basic, right? But have you really stopped doing all of the things poor people do as you've embarked on your real estate investing journey. I mean, are you still getting ready to get ready? That's what poor people do. Are you allowing your family and friends to stop you with their cynical and resigned points of view? That's what poor people do. Are you spending more time watching TV than working on your dream? And I ask these questions because you can have aspirations to become wealthy and still do all of these things.

It's just that if you do, if you combine the two, your aspirations will likely remain just that. Aspirations. So that's step one. Stop doing what poor people do. Step two. Start doing what wealthy people do. Again, pretty basic, right?

And most people get this part. They get this part certainly before they get step one. They start doing what wealthy people do. but kind of fail to stop doing what the poor people do. They combine the two. But they do get number one, or they do get this one before they get number one. So it takes some time. They pursue the wealthy activities from a perspective of poor, though, or with poor habits.

And here's what I mean specifically. The wealthiest people do what they do best and delegate the rest. The wealthiest people work more on their business than they do in their business. the wealthiest people work their strengths and higher their weaknesses. Now, maybe this is the first time you've ever heard these distinctions. And maybe it's not. Maybe you've heard them before. But even if you have heard them and you're not applying them, knowing them makes no difference.

There's an ancient Chinese proverb and it goes, to know and not do is to not know. And what I'm getting at here is we've talked quite a bit here on this show and even more so as of late on how to leverage other people's money on different ways of doing that. For example, the epicfastfunding.com thing that we've talked about a lot. And that's important. That is something that wealthy people do. And it will be vital to your growth.

And it will be vital to your pursuit of wealth. but there is something even more important to your growth than the ability to leverage other people's money. What's more important is the ability of leveraging other people's time. That's probably more critical to your success, the ability to leverage other people's time, meaning we all have the same 24 hours in a day to get our stuff done. And some are better time managers than others,

and thus they get more done, but still there's a limit to how much you can grow and how much your business can grow with just 24 hours. So leveraging money is very important, and leveraging time is even more important. And the wealthiest of people make it a point to master this part. I mean, if you take Richard Branson, for example, how does he own and operate more than 400 companies?

More than 400 companies. How does he do that? Well, he doesn't operate them. That's how. He doesn't operate them. He hires people to operate all of his virgin businesses. He hires people to do that for him. So you may be thinking, okay, sounds great, Matt, but that's Richard Branson.

I certainly know Richard Branson. I don't have the money to hire a bunch of people, let alone one person. And even if I did, where would I find them? How can I trust them? and when I do find that good person to hire, how much is that going to cost me? Can I even afford it? If you're thinking anything like that,

I can relate. Those thoughts used to dominate my thinking as well. And those thoughts held me back significantly for a very long time, even after I was coaching, even after I was teaching. Those thoughts held me back. And I'd always think, well, of course I should be doing what the wealthiest people do. Of course, I know this.

I teach this stuff. I know what to do. If I only had the time and resources to do it, though, then I'd do it. I only had the time and resources to do it. Well, now I do. And you know what?

You do too. If you want to. I've recently joined forces with a really smart guy who set up a business to train virtual assistance. And he trains virtual assistance just for real estate investors.

He's going to be here next week on the show to discuss this subject and discuss his business, to discuss his service. But I couldn't wait to share it with you. Because it didn't take a lot of time to get my assistant up and running. I wanted to experiment with it.

I wanted to be a user of this service before I even shared it with you. and it didn't cost me a lot of money either. I mean, it costs me, quote unquote, costs me less than $10 an hour. Let me put it this way. It actually doesn't cost me anything. I pay the VA less than $10 an hour. It doesn't cost me a thing.

It actually costs me and has been costing me by not having a VA, by not having help, by not hiring out my weaknesses. Remember our last couple of episodes where we discussed stage one of the millionaire real estate investor. Think like a millionaire real estate investor. That's stage one. You got to think like one.

You got to start there. It's not how much it's going to cost you. It's how much it is going to make you. And in my case, it was more of how much is it costing me by not hiring a VA? How much am I missing out on by trying to? to do it all myself, to maintain that control. How much was it costing me to do it with too small of a staff?

That's how I've been operating for a really long time. I've been undermanned, underpowered. So my VA doesn't cost me money at all. He actually makes me money. And I'm about to pick up a second VA as well. And here are some specifics as to how my VA is making me money right now. First, I never miss a call. That's a big part of the new system that we've been talking about here.

It's not a new system. We just kind of created the distinction and narrowed in on what really makes our real estate business go. And first, we've got to be automatic and with our lead generation. And second, we have to make sure that every lead that comes in gets contacted. And I know how hard it is. I sit here and preach it and I'm preaching to myself as much as I'm preaching to you. Now, we do a really good job. We get to most of them, but we still don't get all of them.

So now I never miss a call. Every person that calls me gets a call back. In fact, they don't just get a call back. They get called back indefinitely until that person answers the phone. We didn't have the time for that. We couldn't call back indefinitely, but now we can. There are no more lost opportunities. So that's the first way my VA.

makes me money. The second way, because that's their only task, that's their only responsibility to assist and screen those that respond to my marketing, I can now scale my marketing. I don't have to limit my marketing to the amount of support staff I have to receive the calls from that marketing. I can mail more, which increases my opportunities. I can create more opportunity in a smaller time frame. That's the second way. The third way my VA makes me more money, and this one is my favorite. This is my favorite. No more profit sharing. Nope. I don't have to split the profits with my staff anymore. Now, I'm still very generous to my staff, but there's a different pay structure in place now. You see, less than $10 an hour is all that I have to pay for this person to answer those inbound calls.

And here's how that breaks down. I now pay my VA $10 an hour, 40 hours a week. So that's $400 a week. Now, based on the marketing efforts that I'm ramping up, my VA is going to pull in three to four deals a week. No doubt about it. I just, I've done the numbers. I know how it's going to work.

But let's say I just do one deal a week. That's all I do, one deal a week. Well, my average profit per deal is about $12,000. and the previous arrangement I had with my acquisition manager was a 15% profit share. And on average, because of the $12,000 that I made as an average profit per deal, I paid my acquisition manager $1,800 per deal. And now I pay $400 to my VA for that deal. But I'm likely going to get three or four deals for that $400 bucks.

But let's just say it's still just a one deal a week. That's a $1,200 savings per week per deal. Now, I was averaging 10 deals a month before my VA came on board. So that translates to $12,000 more of profit per month. That's an extra deal per month. That's how much that savings is. And over a year, that's an extra $144,000. So those are my numbers.

I know my numbers. Those are mine. And whether you're still looking to do that first deal or if you're doing more deals per month than I am, the numbers are the same. The difference is the same. It's relative, but the difference is the same. It's going to impact your business in the exact same way. Anyway, my new partner, he'll be here next week to share what else is possible using VAs, because it's not just fielding seller motivated seller calls. He's going to share with you what else he's got his VAs trained to do for your real estate investing business. So if you're in a position

to where you're having a tough time getting to that next level in your business, you definitely want to be here next week. And if you're in a position of making that transition from your day job to a full-time real estate investor, because I know a lot of you are there, you're straddling that fence, you definitely want to be here next week. And if you're, say, let's say you're happy with your current production. Like, life is good. I know you're out there too. And you simply just want more time to enjoy your success. You'd like to make the same amount of money by doing less or you'd like to make more money by doing less. You too will want to be here next week.

Now, if you'd like to jump to the head of the line, my new partner, he put something together very cool for you. In a simple email that you can receive, he put together a five-step shortcut to hiring a rock-star virtual assistant that will make you millions. A five-step shortcut to hiring a rock-star virtual assistant that will make you millions. And that's yours for free. If you feel something like this would make sense for you. You know, you know your situation better than I do.

We're all in different places in our business. if you feel like something like this would make sense for you, go get that. The five-step shortcut to hiring a rock-star virtual assistant that's going to make you millions. And in that short email, he's also going to show you those five-step shortcut, and he's going to show you the three most popular resources

that he uses to find them. So you can do it on your own if you want, or perhaps you'll want him to do it for you. Either way, it's your choice. In that email, there will be a link to where you can schedule a free consultation as well. And then you can make a pay. your mind then. So get all the information, weigh the pros and cons, and go for it. So go to

VAs for real estate.com, VAs for Real Estate.com, and get the five-step shortcut to hiring a rockstar virtual assistant that will make you millions. VAs for real estate.com. So the message of the day really comes in two parts. Stop doing what poor people do and start doing what wealthy people do. And the wealthiest people, people like Richard Branson or a Warren Buffett or an Oprah Winfrey or a Bill Gates or a Donald Trump, the wealthiest people do what they do best and they delegate the rest. The wealthiest people work more on their business than they do in their business. The wealthiest people work their strengths and hire their weaknesses. So go to VAs for Real Estate.com and pick up a free copy of the five-step shortcut to hiring a rock star virtual assistant that'll make you millions. Do it yourself or have it done for you. Either way,

if wealthy is to what you aspire, do it. I'll close today's episode with one of my partner's VA's on the phone with a motivated seller. And then just kind of sit there and imagine a VA like this working for you. Hey Bob. Good morning. This is John from Green Row Holmes. I'm just calling you back regarding a message that you left us regarding your property. Okay. Um, All right. When was that? You called us yesterday, and it was about your property on citation drive. Ah, okay, okay, okay. Yeah, thanks for calling back. Yeah, I got your letter and wondering, so, well, how do you guys work?

Well, we're basically a real estate solutions company in your backyard, and we're looking to purchase a couple of properties, and basically we pay cash, and we could close in a matter of days. You don't have to, we'll take care of broker fees, closing costs. And I just need to get some basic information about the property so we could come up with an offer in 24, 48 hours. Oh, perfect. So where did you get my information from? We got your number from public records, Bob.

It's information that's usually, that's readily available to basically anyone. So like I said, we just looked you up because we're looking. to buy a few homes in the area. And it's good that you call this back, though, because I'm looking at a few pictures of the house and it looks like it's in good condition. Have you done any repairs or upgrades to it, though, that we should take note of?

No, I mean, pictures that you saw, it's a great house, great house. Okay, okay, sounds good then. Let me ask you this, though. If you were in my shoes and you were to buy your own house, would you recommend any upgrades to be done on it or any repairs? Um, hmm.

I might, you know, I might, uh, maybe change in the basin may change the carpet. It's got a little stain on it. Um, uh, maybe a couple of the windows I would, um, I would replace. But, uh, other than that, no, it's good. Okay. Sounds good then. Um, how many bedrooms and bathrooms in total? Uh, it's three, four bedrooms and two baths.

All right. And what do you have for parking? What do you mean? Do you have a garage or a carport maybe and for how many cars? Okay. No, I have one car garage. Okay. And off the top of you had, would you know what the approximate square footage is?

Of the garage or my property? The actual property. It's about 2,500 square feet. Okay. All right. And do you have a mortgage against it? We could help you pay off? Yeah, yo.

I do have a mortgage on it. Okay. How much is left in the mortgage, though? And do you by any chance remember what the interest rate is? No, I probably owe about 100 to 200,000. I can't remember. Okay, okay. That's fine.

100 to 200. Okay. And what made you decide to, you know, go ahead and sell this? Well, I mean, I just got a letter from you, and I'm actually just seeing how you work. I don't, you know, I don't know exactly if I want to sell it. I just want to see how you guys operate. Okay, well, you know, Bob, I'm a firm believer that everything is for sale for the right price and, you know, working with a big investment group like ours, I'm pretty sure we could come up with an offer that you definitely be interested in. Let me ask you this, though.

Who's occupying the house right now? Is it you or is it like rented out? No, this is actually my house. Okay, okay. Okay. And have you maybe done some research on it or let me rephrase that? If you were to sell the house right now, how much would you want to get? I want to get about $270,000.

$270K. Is that from research, or are you comparing it to a similar property that was sold recently? No, my neighbor's house. My neighbor's house got sold for, yeah, $270,000. You know what, my house is a lot nicer than there, so. Okay, okay. And was that property listed, though, or did they sell it on their own? Um, I don't know that. Um, okay. I think, I think they listed it actually. Okay. Okay. The reason I'm asking though is because, you know, it may be, may have been listed for 270K, but I'm pretty sure they also paid off, you know, the closing costs and the broker fees. And, you know, I'm pretty sure they did upgrades just to make the property into a marketable, into marketable. I don't think so. There was a really good property. Um, they fixed it up along the way. Yeah, I was in it and it was really nice.

Okay, okay. That sounds good then. Let's see. So if we could come up with an offer, or let me just take a step back. Would you be flexible with that price or is that the absolute lowest you could go? Because, I mean, we could definitely work with you with that. But I just want to know if that's even the least but slightly negotiable. I might be a little negotiable. Okay, okay. That's all we need. Let's see. You know what? Bob, I think that's pretty much all the information that we have right now. We'd love to take a look at the house, though, so we could make a better assessment.

I could have one of our associates drop by sometime Thursday or Friday if that would work for you. Yeah, you know, and I think. I think that'll work. Okay. Yeah, a little bit after five would be the best because, yeah, that would be the best. Sounds good. We'll be there. And we'll also send your credentials so that, you know, you'd know a bit more about our company and how we work.

What's your email address? It's Bob at Gron. Okay. Okay. And would this be the best callback number for you, or would you prefer us calling you on a different phone? No, this would be perfect. Okay, great. Well, Bob, that's, again, that's pretty much all the info that we need.

My name's John, and I'm... So, yeah, I guess we'll see you in a couple of days. All right, thank you very much. All right, thanks, Bob. Have a good one. All right, you too. Bye. That's it for today.

See you next week or catch me tomorrow on turnkey 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.