Epic Real Estate Investing - When Is It a Good Time to Sell Your Rental? | 670

Episode Date: June 1, 2019

Matt shares 3 specific scenarios when you should sell your rental. Otherwise, hold it for cash flow! Learn more about your ad choices. Visit megaphone.fm/adchoices

I'm glad that I came to the Epic Intensive because, like I said, we learned some of those awesome strategies that the guest had to offer and that we learned a few ways to analyze properties that I didn't really do before. I think the one thing that I'm going to take home and start to use more is going negative with sellers. That takeaway really helps you gain some leverage in the negotiation process. So I think that's a great tip. Hey, Matt here. You know, everyone is talking about real estate investing, right? It sure seems so. I mean, everybody wants to get in on the action.

And we all know that finding off-market deals, it can be tough. It can be really tough. But what almost no one understands about real estate investing is the concept of finding truly motivated sellers. Because it's not spending more on marketing to finding these motivated sellers that helps you buy discounted real estate. It's setting up a really good automated lead machine that finds quality sellers around the clock. And that can happen. Even if you can't stop trying every new strategy that. that you see at the RIA clubs or hear about on a podcast.

As long as you're also contacting your leads, setting appointments, and making offers. And before I forget, if you like the sound of where this is going and you want to go deeper, you might like to attend the live three-day Epic Intensive Lead Machine Workshop. It's July 18th through the 20th. And if that sounds interesting, then head on over to Epicintensive.com. Get the details.

That's Epicintensive.com. All righty. Now let's get on with the show. Today, we're going to talk about your real estate, and the main thing we're going to focus on is when is it a good time to sell your rentals. This is Terrio Media. When is it a good time to sell your rentals? But before I answer that, if you're serious about your real estate investing and if you're really serious in finding discounted real estate to build your portfolio, to make some money in real estate, then you might like to jump. Join us at the next Epic Intensive.

You can go over, take a look at Epicintensive.com. Head over there. All the details are there. And if you like what you see, join us. All righty. So when it comes to real estate, we all know we need to hold real estate to create the wealth that real estate promises, right? A huge thing that holds people back is the timing of the market, meaning when is it

a good time to buy? When is it a good time to sell? I think, you know, that comes in all the time. But people are really just, they're worried about missing out. They're worrying about losing. They're worried they've heard the stories of friends and family or friends of friends and family of friends and friends of family of people that have lost money in real estate. So we want to get it right. But that desire to get it right frequently causes analysis paralysis and they never take action.

And the next wave, the next big real estate boom is going to pass them by and they're just going to be in the exact same spot as they were before. Other side of that coin is there's more real estate been made than there has been that's been lost. Real estate has produced more wealth than any other thing, industry or investment vehicle out there. And I'd be happy to put my list of winners against anybody's list of losers. And the way that you do that is you buy and you hold. You buy specifically for cash flow. You want to own real estate that's going to pay you more than it costs you to hold it. In that way, it doesn't really matter what the market does.

Your timing of the market is not going to impact your wealth creation. Sure, it may go up and down along the way, but if you bought for the right reasons, that reason being producing a positive cash flow for yourself and you have no intent of selling it, then it doesn't matter what the market does. Market conditions, just if you look at the concept of supply and demand, You know, there's only so much land that we have to build on. And the demand, people, we keep making those each and every year. So the supply and demand is definitely in your favor at the very least in our lifetime, right?

So we don't have to worry about the supply and demand. Real estate will continue to go up and up and up. It may do this along the way, but as long as you're buying for cash flow, who cares? So when is it a good time to sell your rentals is really never? That was my reflexive answer. Because I think about Warren Buffett, he says, his favorite holding, time or his favorite holding period is forever. And since you can't time the market, you can't see the future trying to time your purchases as silly. That was my reflexive answer. I got to think

about it a little bit. I came up with three specific scenarios when you actually might want to consider selling your rentals. And I'll share that with you in just a minute. But first, if you want to go deeper in building your real estate portfolio, you just might want to join us at the next Epic Intensive. It might make a lot of sense for you. So if that sounds interesting, head on over to epicintensive.com and take a look. All right. So here are the three scenarios that will constitute a good time to sell your rentals. The first one, if the management of the property is just too much for you, if it's a headache,

whether it's a bad market or it's a bad tenant or recurring bad tenants or it's a bad property manager you're dealing with, if it's just one thing after another and it just becomes too much and it's weighing on your psyche more than the value that you're getting from the cash flow, then that might be a good time to consider selling that rental. Number two is if the rental is losing money, and I'm not talking about a depreciating market, I'm not talking about something that a bubble burst in the market and you're upside down. That's not losing money, not as long as you're cash flowing. But if you're having trouble collecting or the maintenance and the repairs on the property,

start to dig in and actually cost you money more than it's making you, that might be a really good time to sell your rental. And then the third reason is, which is really my favorite one, is that you have identified another opportunity where the ROI is going to be better than the ROI that that rental is producing. For example, if you have a cash on cash return of one rental that's producing, I don't know, let's say 10%. Okay, just keep it simple.

You got a 10% cash on cash ROI on this rental and you've got some equity in there. and you've identified another opportunity, you came across another deal that's going to pay you 15% and you need the money to go ahead and take advantage of that new opportunity, then it might make sense to take that rental, sell it, take the cash from there, and put it into the new one and elevate the return on investment on your portfolio that way.

So those would be the three specific scenarios. And if you'd like for me to show you how to do that, that's one of the big sections at the Epic Intensive that we actually focus on, is how to take our existing assets, and look at what our assets are doing, how they're performing, and actually put a number to them, and then go ahead and play this little game of where we reorganize them. And so we know which ones to keep, which ones to go and sell and redeploy to improve the overall health of our portfolios. And that's one of the things we do at the Epic Intensive.

So if you would like to sit in and do that face-to-face, personally, I'll help you one-on-one do that in a three-day period, then check out the Epic Intensive. Epicintensive.com. All righty. So here's what we know. Real estate, it creates wealth. Holding it does specifically. That's what creates the wealth is by holding it. The second thing is you can't time the market. So don't wait for the market to buy real estate.

Buy for cash flow and wait and wait forever unless the property management just becomes too much and it's costing you more emotionally than it is paying you financially. Or two, if it's costing you more financially than it's paying you. So if you're losing money, that might be a, good reason to consider selling your rental. And the third reason is you've got better ROI elsewhere. You can take the money that you have in that property, redeploy it, and get a better return on investment.

All righty? So to your success, I am Matt Terrio, live in the dream. Take care. This podcast is a part of the C-Suite Radio Network. For more top business podcasts, visit c-sweetradio.com.