Epic Real Estate Investing - Where to Find Good Cash Flowing Deal in Today's Market | 1152

Episode Date: June 11, 2021

In today’s episode, Mercedes, The Turnkey Girl, answers the most common questions on how to find good cash-flowing deals in the post-pandemic market. Stay tuned and find out what these questions are, how Mercedes finds exclusive off-market properties, why she does not keep all her cash flow deals for herself, and much more! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio 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-Torres. Hello and welcome. Welcome to the Turnkey portion of Epic Real Estate Investing podcast. My name is Mercedes Torres, and I am lucky enough to be partners in crime with Mr. Matt Terrio,

the guy who created the epic real estate investing empire. So for those of you just tuning in now into our turnkey real estate investing show, this show has been created specifically by Matt and I. For those busy professionals who understand the importance of real estate, but really don't have the time to learn every single new one. wants that there is to learn in real estate, yet you still want to learn about it. You still want to get involved and quite possibly acquire your own personal real estate investing portfolio. So whether big or large portfolio, that is, I just break it down real estate on this podcast

because I really feel that real estate is the final frontier to help the average person reach financial freedom. So that's why I'm here. And if you're joining us again, welcome back. Well, ladies and gentlemen, tis the season. As you can hear in my voice, I am a little under the weather. I've been sick for about a week and a half and I just cannot get rid of it. But I'm so committed to our turnkey podcast that I did not want to not have an episode this week. So instead, I chose to do something short and sweet because I honestly believe that sharing words of wisdom has the potential to change your life. I mean, I listen on a weekly basis, on a daily basis, to those people that have achieved amazing success that I want to do. So I listen to their words

of wisdom. I listen to their trials and tribulations. I like when they share their story and nuances that have occurred in their world of real estate, because I know that there's something that I can learn from them. So I wanted to share a little bit about how we find exclusive off-market deals. But really, this episode is just really to share words of wisdom and to answer a few common questions of which I get on a daily basis. Now, it blows me away, believe it or not, how I often share with you on the podcast, if you reach out to me, whether it's a email that you send me, some of you write to me heartfelt emails about your struggles, your tribulations, about a deal that went bad, or just to tell me that you're stuck, you don't know what to do next.

and I get emails, I get phone calls, and when I respond or when I call back, it blows me away how you're blown away that I'm calling you. So I want you to know that if you email me, I will absolutely answer your email. And if you reach out to me and schedule a call, I will get on the phone. You won't be speaking to my assistant. I mean, you may initially, but you will actually be speaking to me. And I will be more than happy to discuss whatever it is. that you'd like to discuss.

Having said that, it sometimes takes me a few days to get back to you. So if you don't hear from me right away, I promise I will get back to you. And sometimes it's instant. You know, you'll get a response from me within an hour. Needless to say, I reach out to each and every one of you that reach out to me. Having said that, I get questions all the time. And the three most common questions that I get are the following. number one is how do you get exclusive inventory how do you find these off market deals

number two is why don't you keep them all to yourself that is i get that almost every day and then number three is why does your turnkey cash flow savvy why do you have a cue system and how does that work now you know that i often get why don't you just blast your properties out to the public. Well, there's a rhyme and a reason to why we do what we do, and there's a reason why we get exclusive inventory, and I'm going to share all that with you. I will start with the easiest answer, and the most common one is about our cue system. Now, there is a rhyme or reason to our queue system. And that's because when Matt and I started real, we estate investing, the biggest mistakes that he and I made were simple. Number one was we operated

in haste. We acted way too fast when we got deals that popped up on our desk when we first started. We acted way too fast. And number two is we often overpaid for our properties. Our negotiation tactics weren't so great, so polished, so to speak, but we overpaid for properties that have ended up costing us more than they needed to. So when we started cash flow savvy, it was really important to me that I eliminated as much risk as possible for our potential investors. So Matt and I put our brains together and we said, how can we create a system that eliminates all of that?

So the reason we created a Q system is because we eliminate all bidding wars, and we offer all of our properties exclusively to the people in our queue one person at a time. So there is no bidding to our properties. The price is the price. You are often very much paying market value, sometimes a little bit less. Our appraisals tend to come in a little bit higher than what we're selling. But nonetheless, there is no bidding and there is no having to worry about having to respond. to an email that I send to you.

Every one of our properties goes out exclusively to our clients first, and our clients have 24 hours to make a decision on anything that I sent. So when you get an email from us, or specifically from me, that property is yours for 24 hours. Nobody else can see it, and it's yours for 24 hours. No bidding, the price is the price, and that's what it is. So that's why we have a queue system. And to get into our queue, it's relatively easy. All you have to do is, number one, pre-qualify with one of our lenders or show us proof of funds.

And number two, you wire $2,500. By the way, fully refundable to escrow. These $2,500 go towards the purchase of your property. It is not an additional fee. It's used as your earnest money, but the $2,500 puts you in our queue, and you are placed in the queue in the order that you have opened escrow. Our queue moves relatively quickly because, again, we do not blast properties out to the public.

We only offer it to the investors in our queue, and when you get a property, you have 24 hours to respond. Now, it is very common that I send a property to a company to a company. client, for example, at 8 a.m. Well, that client only wants a specific property. Could be they only want a Memphis property, or they only want a property that is $100,000, and the property I blasted out is maybe $80,000 in Indianapolis, for example. So that investor will pass on the property, and that same day, it goes to another investor, the next investor in the queue. So we offer our properties exclusively to those clients in RQ. I hope that makes sense. Now, the foundation of

Epic Real Estate is we teach you how to do real estate or we do it with you. I actually should say that we do it for you, but I don't say that because I want you to learn how to do exactly what I'm doing. So we hold your hand through the entire process of you acquiring your property. Now, cash flow savvy started by sheer accident because we teach you how to do it through the Epic Pro Academy. That is our other podcast. Matt often talks about how to get deals under contract, how to negotiate the deals. The Epic Pro Academy is a step-by-step process of how to do real estate in your own backyard or even virtually, but it is literally a course that teaches you from A to Z. Now, I have often been told by other gurus in the industry that the Epic

Pro Academy, the course that Matt created, is by far one of the best real estate courses out there. I happen to think that, but I'm a little bit biased. Yet one of the things that keeps us very relevant and current is that Matt updates that almost on a monthly basis. And in addition to that, he gets on a call every week to help you walk through the deals when you get stuck. That's you doing it for you. And that's for those people that have time that want to dive into real estate investing full time. They want to find the deals. They want to put them under contract. They want to negotiate. Cash flow savvy is the extreme opposite. It's for, for those individuals that don't have the time to go out and find the deal, to put it under contract, to negotiate the terms.

Cashful Savvy does that for you. And in fact, when I say we started Cashful Savvy by accident, it's because our busy professionals would buy the Epic Pro Academy course. They would go through the entire course. They loved it. They reaped every single detail from the Epic Pro Academy. me and then they realized after they completed the entire course that they didn't have the time to do it themselves. So they call our office and they say, the course is great, but I don't have time to do it. Can I just buy one of your properties? And gosh, when we first started, Matt was like,

well, I do have a couple of properties that are cash flowing. Sure, I'll sell you one. So one month, Matt sold one property. The next month, he sold three properties. And the third month, he sold, like 10 of our cash flowing properties. I lost it. That night he slept on the couch. He was in the doghouse because I said, why are you selling our passive income? And he said Mercedes, these people don't have the time to do it themselves. And that's how cash flow savvy was born. So a little bit of history about how cash flow savvy got started. But I share that because I want you to know that all of the properties that we get that we offer exclusively go through our vetting process and they have to meet our minimum criteria. So Matt created a proprietary algorithm that allows us to extract detailed information

from national census. And I mean information like medium household size, medium household income. It's really important to us that the purchase price and the rent ratio, give you the return that you're looking for. And more importantly, our algorithm brings us markets in Middle America where the majority of the population rents properties because they can't necessarily afford to buy. So we focus on markets in Middle America where there is no shortage of tenants. So when we started diving into this markets and creating our team,

our team started to realize that we were buying on a constant basis. Now, we weren't originally buying in massive volume. We were just buying consistently. So to answer the question of how we get exclusive inventory and how we find off-market deals, well, in each of our markets, in each of our 10 markets, we have anywhere from 7 to 12 acquisition stores. sources. So what does that mean? In each market, I have bird dogs. I have real estate agents that

bring us off market deals or bring us deals that they've had sitting on the MLS that just aren't selling. They then have the relationship with their sellers and they bring the deals to us before they even go on the market or when they can't sell on the open market. And then in turn, we start to negotiate. We also buy properties. directly from sellers. We do our own marketing. We look for motivated sellers that have to sell, whether it's a life crisis like a death in the family or whether it's a medical emergency. We look for those people that are looking to sell so we can find these off-market deals and bring them to you. We also work with real estate agents that have pocket listings. We work and

buy stuff directly from banks that understand that we buy on a regular basis. And we also have a reputation out there that we buy pretty quickly. So if your property meets our minimum criteria or the property that gets brought to us meets our minimum criteria, we are all about it. So that's how we get these off-market deals that we then purchase, rehab, place 10, in these property and most importantly, we take these properties, manage them, collect the rents, and then forward the rents to the investor that purchases our exclusive inventory. Now, I hope that answers that question. But that prompts the next question that I always hear that they ask, Mercedes, why don't you and Matt keep all these deals for yourself? That's a great question.

And to be quite honest, we just can't. First and foremost, we're not billionaires. I can't buy everything that appears on my desk. But more importantly, I don't have the team and the manpower to buy everything that comes across my desk. Also, you know, once you build your portfolios, you start to diversify your portfolios. And Matt and I have begun to diversify our portfolios. And each portfolio that we have caters to something specific. and something different. And just because a deal doesn't make sense for me doesn't mean it's not a great deal for you

or for the next investor in our queue. So I often talk about, I don't keep everything, number one, because I can't. And number two is because I don't want to. We began to diversify our portfolio, and that's how I begin to diversify our clients' portfolios. You first start taking baby steps and then we start getting bigger. I build portfolios for our client. The biggest portfolio I built has been 18 properties. But when you get to that point, you start to look for different things. And believe it or not, I have investors that pass on properties because they're looking for something specific or because that property just didn't meet that need for that investor at that time.

So I hope that answers all of your questions. Having said that, I really just wanted to tap on getting your wheels to turn. It's really important to me that I get you to think. After all, my goal is to get you to think a little bit different, perhaps thinking outside the box, because it's really important to me that you start creating financial freedom for you. Whatever that number is or whatever that number means in terms of, of your portfolio, I want you to start reaching for it. Now, if you need my help, reach out to me. I will be happy to talk to you to help you think real estate, to help you think passive income, to help you think outside the box, if you will. You know, whatever it is to get your wheels turning and to help you step into financial freedom more so than you currently have now. So feel free to reach out to me directly. You can email me at Mercedes at epicrealestate.com. go on to our website, cashflow savvy.com. That's savvy with choovies.

You can download the frustrated guides to passive income. Or you can simply request a passive income audit with me. I will be more than happy to connect with you. This is Mercedes Torres. I hope my voice didn't get too in the way, but I truly hope you have an amazing day. Until next week. Keep the cash flow coming.

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