Epic Real Estate Investing - Unlock 3 Secrets of Subject-To Creative Real Estate Investing: Plus, Turnkey Income and 5 Uplifting Stories to Boost Your Day | 1261

Episode Date: April 18, 2023

Are you ready for the ultimate real estate investing episode? We're combining the power of subject-to and turnkey income properties into one epic show that will have you drooling over the potential profits.   First up, we're spilling the beans on 3 subject-to real estate investing secrets. We'll discuss how to structure deals, work with agents, and even wholesale subject-to properties like a boss. And if that's not enough to get your heart racing, we've also got five uplifting stories to remind you that there's more to life than just making money.   But wait, there's more! We're also talking about turnkey income properties today. Imagine properties that are already rehabbed and rented, so all you have to do is sit back and collect the cash flow. It's like buying a car that's already been washed and detailed, except it's a house.   So, whether you're a seasoned investor or just starting out, this episode has something for everyone. Don't miss out on the opportunity to learn about two game-changing strategies in one episode. Click that play button and let's get this party started!   P.S. Whenever you're ready... here are 3 ways I can help you become the healthy, wealthy, beast of an investor God designed you to be:   Become an Epic community member at “Epic Real Estate Investing.” One of Mercedes’ and my favorite things to do is share with investors real estate trends, interesting guests, and housing market news. We do it every week, and you can listen in by subscribing to Epic Real Estate Investing on Apple Podcasts - Click Here. Or WATCH HERE on YouTube.   Become an Epic partner (I'll pay you) If you want to go deeper and further as a real estate investor, looking into my partner program to help you get your first deal might be the move... take the first step here for free.   Work with me One-on-One If you'd like to work directly with me on your business... meet me here, answer some short questions, and we'll hop on the phone to brainstorm some cool ideas for you and your market.   Also...check these out :)   FreeEntity.com (Need an LLC? Get one for almost FREE) DealEngineer (Most powerful data for finding motivated sellers) TrueProfit.net (Less stress and greater profits for your real estate business) Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Are you ready for the ultimate real estate invest in episode? We're combining the power of subject two and turnkey income properties into one epic show that will have you drool in over the potential profits. First up, we're spilling the beans on three subject two real estate invest in secrets. We'll discuss how to structure deals, work with agents, and even wholesale subject to properties like a boss. And if that's not enough to get your heart racing, we've also got five uplift and stories

to remind you that there's more to life than just making money, but wait, there's more. We're also talking about turnkey income properties today. Imagine properties that are already rehabbed and rented, so all you have to do is sit back and collect the cash flow. It's like buying a car that's already been washed and detailed, except it's a house. So whether you're a seasoned investor or just starting out, this episode has something for everyone. Don't miss out on the opportunity to learn about two game-changing strategies in one episode. Let's get this party started. Hey, strap in. It's time for the epic real estate investing show. We'll be your guides as we navigate the housing market, the landscape of creative financing strategies and everything you need

to swap that office chair for a beach chair. If you're looking for some one-on-one help, meet us at rei-aise.com. Let's go, let's go, let's go, let's go, let's go, let's go, let's go. Let's go. Hey, today we're diving deep into the world of real estate and uncovering the power of a little known strategy called Subject 2. In this strategy, it has the potential to revolutionize the way that you do business and create win-win situations for you, your sellers, your buyers, and even your real estate agents. So, strap in, grab your notepad, and get ready for a few secrets of this game-changing strategy. In this market, you're going to need it. Let's go. Now, if this caught your attention enough to click, there's actually a very decent chance that you have a basic understanding of what

subject to is. But maybe you're struggling with how to structure the deal or explain it to potential clients or explain it to real estate agents. So don't worry, I got you covered. I'm going to break down the subject two strategy for you into simple terms. I'm going to give you the key points that you want to make sure that you cover when explaining it to sellers and when explaining it to agents. You can't do that. What? You think you can't do subject two deals with agents? Nope. Hells yeah. I did this deal right here on Zoom with all my students watching even. No money. down either. And I'll show you how I did it and how do structure and wholesale subject two deals too. You'll be so fired up and ready to take massive action like a caffeinated squirrel on a trampoline,

bouncing off of walls, driving to reach new heights. All right, so to make this super simple to understand so that my 12-year-old could understand it, subject to is a creative financing strategy where you take over the mortgage payments of a seller's property. That's it. And notice, I didn't say assume the mortgage. I said, take over the payments of the mortgage. I said, take over the payments of the Very different. This can be a lifesaver for sellers who are struggling to make payments, need to move quickly, or simply can't sell their property for what they owe on it. And the secret sauce in getting deals like this done, it's in the presentation, specifically

using the right words, take over the maintenance and payments. You see, when you're talking to sellers or agents, avoid as much of the industry jargon as you can. I mean, it may make sense to you and I, but it confuses just about everybody else. I mean, if it doesn't flat out scare them. Boo! If you confuse them, you lose them. So instead of saying, I can buy your property subject to, just say, how about I take over

the maintenance and payments on the property so you can move on with life? Sounds nicer, doesn't it? Like you're doing them a favor, right? I mean, all those other investors, they called me trying to steal my property for an ungodly low price, but you, you're going to take care of my property and even make my payments for me? You're goddamn right. Yeah. Got a nicer ring to it, doesn't it?

At the very least, it keeps the negotiating door open. At best, you get a property with the money needed to buy it already in place. Yeah, when you do it right, the property actually comes with the money attached. And here's a key point for subject two deals for when an agent is involved. To get them to cooperate with you, you got to dial into their frequency, their favorite radio station. WI-I-E-E-E-E-E-E-E-R. What's in it for me? And to agents, that would be their commission.

They want money. Make sure that they know they're going to get it, and then make sure that they do actually get it. Do that, and they'll play ball every time. And that's how I got this subject two done, by making sure the agent knew they were getting their full commission. The subject two strategy, it's actually nothing new, by the way. Did you know that subject two deals, they've been around since the 70s?

They gained popularity as a creative solution for homeowners during an economic downturn. And here we are. the economy is turning down, and the subject to popularity is turning up. And did you know some of the most successful real estate investors built their entire empire's on subject to the deals? The timing is right, and you're in good company if you choose to start using this strategy. And more about the presentation. You know, using stories will make it easier for your sellers and your agents to further understand subject to.

Because as likely they've already done a version of it at some point in their lives, but they just didn't know it. They don't realize it. So when the situation calls for it, I tell sellers a story about when I got my first car. I saw badly one of these shiny chrome wheels for it, but I didn't have the three grand to buy him, but my mom, she had a credit card with a $5,000 limit. So my mom, she used the credit card to buy those rims for me, and then I made the payments on her credit card.

That's subject to. It's a simple, relatable example that illustrates the strategy so that anyone could understand it. I mean, you've probably got a story like that. And if you don't, borrow mine. Now, how do you structure a subject to deal? Do you need a special contract? No, you don't.

It's simpler than most people think. And there may be more than one way to do this, but this is how I put the paperwork together while my students watched me buy this property. And by the way, if you want some help with your real estate investing goals, let's hop on the phone and brainstorm some ideas on how to get you there faster. I mean, just answer a few questions about yourself and your goals at r-e-i-a-a-a-com and pick a time to talk.

That's convenient for you. Now, back to that contract. You just write in the price that you. and the seller agreed to, just like you would on any other purchase agreement, and then write in the additional term section subject to the existing financing. And that's all there is to it. And here's some additional things that you could include that will really help smooth things over. Let everyone know, and write into the additional terms as well, that you'll be paying the closing costs and that you'll be paying the agent's commission.

And if there's enough room, try to see to it that the seller gets something to help them get to their next destination. I mean, even just five grand, 10 grand to the seller, that can go a long way in keeping the deal together, especially if they're in a tight spot financially, of which when it comes to subject to deals, that's usually the case. And with that deal that I was telling about, the seller, they didn't want anything, they didn't want any money. They didn't want anything, except for the bank to stop calling them. So I made that happen for the seller. Win-win. Now, once everyone agrees, introduce your transaction coordinator to the seller and the agent. That's how I do it. and I give all my students access to my TC, my transaction coordinator,

because she's kind of got superpowers when it comes to the creative stuff. So they love that they don't have to handle any of the paperwork, the mountain of paperwork, or deal with the banks and taking over the loan or the insurance company or the distress seller disclosures or the authorizations. They don't have to deal with any of that stuff. For less than the price of a zirconia-encrusted rubber duck, everything with her goes smoothly so you can spend your time where it's most valuable, taking down your next deal.

Now, most of the time, I will keep my subject two's as income property, especially right now because they almost all have low interest loans attached to them. But you can wholesale subject two deals too. I knew you could do that. And it's no more complicated than just making sure that your purchase agreement is assignable. Just like you would with any other wholesale deal. Find a buyer and charge them an assignment fee to step into your place into that agreement. Yep, it's that simple. Subject two is not a one-size-fits-all strategy, but it is a powerful and versatile tool in your real estate investing toolbox. By understanding the ins and outs of subject two, optimizing your approach and embracing the spirit of collaboration, you can create lucrative opportunities for yourself, your sellers, your agents, and your fellow investors that most other investors can't. The sky is the limit with the right know-how, resources, support, and mindset.

With all that, you can achieve anything. We'll be back with more. after this. She's been helping busy professionals for more than a decade now build passive cash flow with real estate so they could take their foot off the gas a bit and enjoy the good life. Let's raise our hands, unless you're driving, of course, for the turnkey girl Mercedes-Torres. Hello and welcome back to another episode of epic real estate investing. My name is Mercedes-Torres and I am lucky enough to be partners in crime with Mr. Matt Terrio, the gentleman who created the epic real estate empire. And today, I'm diving into why I think real

estate investing is the best investment on the planet. Not only does it offer for completely different profit centers, it is really one of the few investments that hedge against inflation. So in this segment, I'll break it down for you. As you know, There are many ways to invest in real estate. I mean, Matt does a phenomenal job at teaching students how to attract a deal, to convert it into a deal, so that eventually it becomes an awesome exit, profitable strategy for you. But you can either wholesale a deal or flip a property or you can even build to sell. But holding properties has proven to be one of the most. profitable and stable strategies. So let me break it down. When you buy a property with the intention

of holding it long term, there are four huge main benefits of holding properties. Now, this is common for real estate investors, but many gurus, they don't even talk about it because quite possibly they just don't understand how these dynamics work. So here are the four profit centers. There's appreciation, depreciation, cash flow, and amortization. So let's start with appreciation. Appreciation is the increase in value of a property over time. Real estate tends to appreciate in value over long term, which means that if you hold on to a property for years, it's likely it'll be worth more than what it was when you first purchased it. Now, the increase in value can be due to a variety of factors such as market demand,

inflation, improvements made on the property. Now, we don't have a crystal ball and we don't know how much a property is going to appreciate, but we do have history and history repeats itself. So while you can only predict what appreciation may be, I tend to call it speculation, but what we do know is we know that it will increase over time. Now, sometimes the market may dip, but over time, the market usually corrects itself, hence why appreciation and just buying and holding an asset can benefit you. Now, the second benefit of holding properties is depreciation. Now, depreciation in basic, simple terms, is a tax benefit. This tax benefit allows you to deduct the cost of your investment property over a set period of time.

Now, this deduction can help you lower your taxable income, and therefore your tax liability may decrease. And as the property ages, the value of the structure decreases, and you can claim that depreciation on your tax returns. This is where we always say it is really important to have a tax professional that makes sure that you can fully take advantage of this benefit.

And hopefully they understand. what they're doing. That's what a tax professional should be doing for you. Now, the third benefit of holding real estate properties is cash flow. Cash flow is the income generated by the property after all the expenses have been paid. So, if you invest in a rental property, for example, the rental income you receive each month could help you cover the mortgage, the property taxes, insurance, maintenance cost, management cost, all of that. And if your rental income is greater than your expenses, that's what we call cash flow. And this is the main reason why I got into real estate.

You see, over time, generally, holding property provides you with significant cash flow because you continue to build on it. As a matter of fact, this is why I created cash flow savvy. It's my one goal in life to provide financial literacy and really opportunities for the average individual to create financial freedom. This is why cash flow savvy provides you the opportunity to invest in rental properties that provides you with steady streams of income. And that was the main reason why I created cash flow savvy. Now, in turn, the cash flow that you ultimately receive, of course, builds over time, but the idea is that it funds other investments as well. So while these tenants pay you your rent,

they provide you the opportunity to create passive income. So cash flow is one of the many reasons why people invest in holding properties as it could truly provide you financial stability and security over time. Now, let's talk about amortization. Amortization refers to the gradual reduction of a loan over time. So here's where it gets juicy. When you buy this property to hold it, you already have a home. So what do you do? You rent it out. So your tenant pays you rent to live in your property.

Now, if you bought the property right, the rent covers or should cover the mortgage, taxes, insurance, and property management. And then what's left over, well, that's your cash flow. but your mortgage payment came from the tenant paying you your rent. So you didn't pay your mortgage. Your tenant paid your mortgage. Now, holding property builds equity over time as you pay down the mortgage. And with the rent that you receive, your tenant pays down your mortgage.

Isn't that marvelous? Okay, so holding the property over time, helps you increase your net worth and provides you with significant financial benefits in the long run. Now, I often say building your real estate business and building your real estate portfolio, it doesn't happen overnight. It takes time. But if you simply buy and hold and be patient, so much can happen for you. Now, as the mortgages pay down, the equity in these properties, they increase, which can be used to then fund other investment, pay for your children's college education, buy your spouse a new car. I mean, the list goes on and on. Now, let's talk a bit

about inflation. My mother says that there are two things in life that are for certain. One is taxes and the other is death. I went home last weekend and had a full on argument with my parents about their thought process because I now say there are three things that are for sure in our lifetime. I say it's taxes, death, and now inflation. So let's dive in. So let's dive in. into what the basic term of what inflation is. So basically, inflation refers to the increase in the price of goods and services over time. Very simple. So this means that over a short time span, your money will be able to buy you less than it previously could. In other words, the value of your dollar is decreasing. Now, this is really sad for people that

are on fixed incomes because inflation significantly impacts their finances as it erodes the value of their dollar, of everyone's dollar for that matter. So now that I've briefly defined inflation, let's talk about why I believe holding real estate is a good hedge against inflation. So real estate, it's a physical asset that is a necessity to human beings. I mean, everyone needs a home, everyone needs a roof over their head. And because it's a human basic need, the demand of this commodity is a good thing, thus making real estate a really reliable hedge against inflation. So when inflation occurs, the price of goods and services increase,

including the cost of housing. As the cost of housing increases, the value of your real estate investment also increases. So this means that your investment is keeping up with inflation and you're not losing value. Rental properties keep up with the rising cost of living. And as the cost of living increases, so does the rent that the tenants are willing to pay you to live in your. our property. This means that your rental income will also increase providing you with that reliable source of income that keeps up with inflation. Therefore, holding real estate provides you a reliable store of value, if you will, as real estate is a tangible asset. It's a human

necessity that has value regardless of the current economic condition. This means that even during times of high inflation, your real estate investment will retain its value. And in fact, during these times, the value of real estate may often increase because God isn't building any more land and building is slowing down. So this is one of the main reasons why I love real estate as a hedge against inflation. So in conclusion, holding real estate, investing in rental properties can provide you with huge significant financial benefits. You know, you've got the appreciation, the depreciation, cash flow, amortization, and the hedge against inflation. And all this is helping you preserve the value of your dollar.

Now, while some would argue that investing is real estate can be super risky, holding property provides you stable and reliable investment options that have the potential to give you long-term financial stability. So I will always say that with any investment, it is really important that you conduct your own due diligence and research before investment. investing in any property or making any investment decisions. Now, to help you with your investment journey, I decided to make it a little bit easier. So over the next few weeks, I decided I'm going to be bringing on a few experts to specifically talk about the areas, the markets where your investment, your rental investment property,

is a bit more stable. So I'll bring on local investors to specifically dive into the markets that are considered solid, stable, safe, and a vehicle for you to park your dollars so that your money works for you instead of you working for your money. That's it for me today.

My name is Mercedes-Torres, and I will catch you on the next episode of epic real estate investing and cash flow savvy where cash flow is queen. Today's deal of the day is in Birmingham, Alabama. And tell us what the numbers are. Get ready to flex those investment muscles because this property is an absolute beast. With four bedrooms and two full bathrooms, this home is like a heavyweight champion in the rental market. And don't even get us started on the insane returns.

It's like hitting the jackpot without even leaving your house. Not only is the interior spacious and stylish, but this home also got a major makeover just a few months ago. We're talking new roof, new hot water heaters, H-back and upgraded electrical and plumbing. This baby is practically brand new. And with a cute front porch and a wide front yard, this home has curb appeal that'll make the neighbors green with envy.

and let's talk location. This property is situated in a prime spot with all the amenities you could ever want within arms reach. From hospitals and schools to grocery stores and restaurants, this area has it all. Plus, there are plenty of parks nearby to relax and unwind on the weekends. The best part, this property is already rented at $1,250 per month, which means you'll be raking in the dough from day one. So what are you waiting for? Head on over to cashflow savvy.com.

For more information on this property, and other investment opportunities that will have you living like a boss in no time. Cashflow savvy.com. Mainstream media is ripping us apart. This is news to bring us together and make some money in the process. First up, Finland has been named the happiest country in the world for the sixth year in a row. The annual world happiness report measures the well-being of people in 156 countries, taking into account factors such as income, social support,

life expectancy and freedom to make life choices. Finland's top ranking is a testament to the country's strong social support system, high quality of life, and emphasis on work-life balance. In heartwarming news, a homeless man in Seattle returned a lost $10,000 check to its rightful owner, and in return, he was rewarded with a new life. The woman whose check he found was so grateful that she set up a GoFundMe campaign to help him get back on his feet, the campaign raised over $150,000, which the man used to buy a house and start a new business. In a story that proves that miracles do happen, a missing

Alaskan dog has miraculously returned home after a dangerous 150-mile trek across the frozen Bering Sea. The dog named Max had been missing for several weeks before he was spotted by a local fisherman who recognized him from social media. Max was reunited with his family, who were overjoyed to have him back home. In a positive development for gender equality, a new study has found that women are earning as much or more than their husbands in half of all marriages. This marks a significant shift from just a few decades ago

when women were often paid less than men for doing the same job. The study suggests that this trend is likely to continue as more women enter the workforce and break down gender barriers. Finally, in sports news, John Rom has completed. an incredible comeback to win the 2023 Masters over Brooks Kepka. Ram, who had trailed by several strokes at the start of the final day, put together a stunning performance to claim his first major title. His victory is a testament to his resilience and determination,

and a reminder that anything is possible with hard work and perseverance. That's all for now. Keep looking for the good in the world and you'll find it. Stay positive, stay inspired, and have a great day. It's not a passing fad, it's the future of. money. What happened this week in cryptocurrency? Hey there, crypto enthusiast. Are you still or never were? It's been a hot minute since we talked about our favorite digital currency on this show. But let me tell you, I've been taking

some time to regroup and reboot. I'm certainly licking some crypto wounds. You see, with all the negative attention and press that crypto has been getting lately, it's easy to get discouraged. But I'm here to tell you that we can't let the bad actors interfere if we truly believe that cryptocurrency is the future of the future of it. of money, and personally, I still believe it is. I mean, the traditional banking system is so archaic. It's practically prehistoric. You have to jump through a million hoops just to open an account and don't even get me started on the fees. But here's where I see an almost certain and probable future for crypto, and that's regarding transferring funds. Transferring money through the banking

system is like trying to run through quicksand wearing cement shoes while transferring money through crypto is like a breeze on a sunny day with a cold drink in your hand. It's like the difference between trying to fit an elephant through a mouse hole versus sliding a hot knife through butter. The banking system is like a grumpy old man who can't find his reading glasses, while crypto is like a superhero who can fly you to the moon with just a click of a button. It's like trying to teach a dinosaur to do the macarena versus teaching a toddler how to use an iPad. In short, transferring money through the banking system is a painful and frustrating experience, while crypto makes everything so much easier and faster.

With cryptocurrency, it's a whole new world. It's like the wild west of finance, but in a good way. There are no middlemen, no ridiculous fees, and best of all, it's decentralized. Sure, the value of crypto may be volatile at times, but isn't that the fun of it? Like a roller coaster ride, but with money. And let's not forget the incredible potential for growth. We've already seen some of the big players like Tesla and PayPal start to dip their toes into the crypto waters, and who knows what other major corporations will follow suit.

So let's not let the negative nancy's get us down. Keep holding on to your crypto and keep the faith. In crypto news, the dogecoin hype train is still going strong as traders eagerly await Elon Musk's next move. The popular meme-inspired cryptocurrency surge 58%, leading many to speculate that Musk will once again give it a boost with one of his infamous tweets. Will it hit the moon or come crashing back down to Earth?

Only time will tell. And then there's this, Bitcoin. has broken above the 30,000 mark for the first time since June 22. After a rough few months, it seems that the world's most famous cryptocurrency is finally starting to bounce back. Analysts credit the surge to increased institutional interest as well as renewed optimism in the crypto market as a whole. And finally, it looks like the G4 central bank balance sheets may have hit their lowest point. For those not in the know, the G4 is made up of the European Central Bank, the U.S. Federal Reserve, the Bank of Japan, and the Bank of England.

Basically, they're a big deal in the world of finance. Anyway, it seems that their balance sheets have stopped shrinking, which is a positive sign for the global economy. That's all for now, folks. Keep on huddling, and we'll see you next time for more exciting crypto news. And that wraps up the epic show. If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would.

And when their name comes to mind, please share it with them. and ask them to click the subscribe button when they get here and I'll take great care of them. God loves you and so do I. Health, peace, blessings, and success to you. I'm Matt Terrio. Living the dream. Yeah, yeah, we got the cash flow. You didn't know home boy, we got the cash flow.

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