Epic Real Estate Investing - Where to Find the Money in a Shifting Market | 980

Episode Date: April 6, 2020

In today’s episode of Creative Acquisition April, Matt shares 5 ways to find the money for your next investment property in a shifting market! Tune in and learn more! Learn more about your ad choices. Visit megaphone.fm/adchoices

It's creative acquisition April, not even a week into this quarantine thing, but we're going to do this all month because this is going to be really, really important for what's going on right now and what's going to happen on the other end of this thing. So you should be starting to see the real opportunity that is coming and how creative acquisitions and creative financing is going to help you make the most of this opportunity where it could really be your big breakthrough. But you're still going to need some money to pull this off. And so I'm going to show you how and why this is.

isn't the big obstacle that you might think it is. This is Terrio Media. Success in real estate has nothing to do with shiny objects. It has everything to do with mastering the basics. The three pillars of real estate investing. Attract, convert, exit. Matt Terrio has been helping real estate investors do just that for more than a decade now. If you want to make money in real estate, keep money.

listening. If you want it faster, visit r-e-i-a-a-a-a-a-a-com. Here's Matt. Hey, Epic Investor. It's Matt Terrio, your buddy Matt from Epic Real Estate, where we show people how to invest in real estate with an emphasis on retiring early. Don't have to retire early, but it's certainly nice to know that you can, right? I mean, it's kind of like driving a Ferrari. You're not going to do 180 all the time, but it's nice to know that you can. I was just talking to to Enrique this week. And what an amazing last year he had. And he just kind of closing and tying it all up to where he was able in less than a year

to create enough passive income where he can walk away from his job. He is not walking away. He makes a lot of money there. But he walks into that job each and every day knowing that he doesn't have to take anything from anybody, particularly his boss. And he was talking about what a great feeling it is. He even said that the employees around him, that his coworkers notice a different posture, a different bounce in his step.

And so what a great feeling. And that's what this show is all about. How to use real estate to create that for yourself. It's the epic real estate investing show. If this is your first time here, really glad that you found us. Make yourself at home. If you like what you hear, make sure that you hit the subscribe button before you go. So you don't miss an episode because we talk about cool

and exciting stuff like this each and every day. And if this is not your first time here, welcome back. You know the drill. You know how it goes and you're back because I guess you like it. And you're sharing it with your friends and family, so that's even more validation.

So I'm really grateful for you, really appreciative of you. Wouldn't be here if it weren't for you and just love all that you do for me and the show and tuning in here each and every week. The greatest gift that you could give me, though, is by putting what you learn here into practice and then sharing with me the results.

I love that. That feels really, really good. But all gratitude is coming from this direction towards you right now. All righty, it's creative acquisition April where the entire month I'm filling your creative financing toolbox for the shifting market because it's shifting. We're feeling it right now. It's happening. And if you're just catching us for the first time this month, we started with episode number 975, coronavirus and your real estate investing that was released on April 1st. No fool in that day. No, April Fool's was canceled this year.

has no made-up prank could match the unbelievable crap happening in the world right now. But it's this unbelievable situation and circumstance that we're experiencing that's creating the massive opportunity for those that know how to recognize it and seize it. And for us real estate investors, that lies within our ability to creatively acquire and control real estate without it really hitting our finances too hard, without using too much money. That's where the creativity comes from. And our ability to creatively manage the risk that also accompanies the types of opportunities being laid at our feet. I mean, there's going to be more real estate changing hands the next year or so than we've seen in the last several years.

And that represents a huge opportunity for those that know how to get in the middle of it all. You know, I escaped the rat race in a shifting market very much like this one that we're going to be experiencing. And I've been waiting for another opportunity like this. is I'm just a smarter investor now and knowing what I know now, I know I can create a lot more good fortune for myself a lot faster with this similar opportunity. I mean, I certainly wish the circumstances

that created this were different. I'd trade it all to make all of this go away for people. But we've got no control over that. We only have control on how we respond to it and how we react to it. And the truth is, as sad as it may be, the divide between the haves and haves-nots, it's about to get wider after this.

People are going to come out of this in a worse position and some people are going to come out in a better position. And we've got no control over that either. It's inevitable. It's going to happen. But you do have control over which side of that equation you end up on, which side of that growing chasm you stand. So if you've got some regret from the past for not taking advantage of the last downward shift,

you've been given a second chance. and that's why this month of April here is really just, it's why it's so important, it's critical. It's crucial. The creative acquisition April, because if you get this wrong, you're probably just going to end up on the side of the chasm you don't want to end up on.

And you're going to look back again, just kicking yourself again and asking, why didn't I just do what I knew to do? But if you get it right and move forward with the right game plan and strategy, and you back it all up with massive action, you're going to experience a massive breakthrough in your real estate investing.

Promise. I promise. I've been there, done that. And with the creative acquisitions, you're going to do more deals. You're going to create more cash flow, enough cash flow. Each and every one of you will have the opportunity to create enough cash flow to replace your day job's income if you're still at the day job. And if you're not at the day job, you can double your existing cash flow.

Regardless really of how much you're getting right now, with very few exceptions, I would think. The great thing about the creative acquisition strategies is that you manage your risk. You put less money down. It protects you from overpaying. You can really accelerate the principal paydown with the right deal structures. It's a huge hedge against inflation. This puts you on the right side of the economy. You know, the economy does what it does, and the wealthy get wealthier because they use depreciating or deflating money or debt to buy appreciating assets like real estate.

and that's what this is going to do for you. The name of the game is to get control of as much as you can with seller financing. And because of the huge stimulus into our economy with all the quantitative easing, the printing of new money is what that means. It drives the value of the dollar down. But if you're controlling real estate, it preserves the value of your dollar. Okay. And then number five, you're just going to create more options.

Once we're all this is all said and done and we're on the other side of this and we're back to quote unquote normal, whatever that would be, you'll just have plenty of options to really bolster your financial position. And if done correctly, you'll never have to work again. All right? That's the goal. The options, that's what equals freedom. So these are all the benefits of incorporating these creative acquisitions and financing terms into your offers.

And that's what we're talking about. And if that's important to you, and if you want some of that, you're going to want to grab the two cheat sheets that I created for you, the 21 creative financing terms and templates every investor needs for a shifting market. You can get free, quick, downloadable copies of those at Epicbreakthrough.com. Epicbreakthrough.com. All righty, so I gave you a five-step action plan yesterday. And if you execute it with tenacity, you really are going to do better over the next six months than you've done over the last six years.

You really are. And if you question my certainty about this and if you question my timeline, take a listen to episode number 978 from this past weekend as to why I'm cautiously optimistic about the rest of the year. Emphasis on the optimism, but I'm not negating the caution either. I am cautiously optimistic. I am moving forward bullishly. And if you incorporate these strategies that I'm sharing with you, the caution and risk management, it's all built in. It all kind of takes care of itself.

That's why it's kind of a really exciting time. Anyway, one of the bigger benefits of creative acquisitions are just that. They are creative, meaning you're incorporating. ideas into your deals in place of the money. I said it many times before. You never have a money problem, just an idea problem. And it's this ideas is where the creativity of the creative financing and the creative acquisitions comes from.

It's putting ideas in place of the money that you may or may not need. But nonetheless, you still need some money. So let's run down five strong sources of money. Five strong sources of money. First one is, my favorite. the seller themselves, right? So we're looking for seller carrybacks. We're looking for seller financing.

And for down payments even, you can ask the seller to carry the down payment. You just have as a second loan, or you have it as a promissary note. And it's just paid back at a different rate through different terms, but you can access your down payments from the seller. Or give them no down payment at all.

You can do it with profit sharing. In place of this $10,000 down payment, why don't I share with you $20,000 after I resell the house or refinance it later? Right. So again, never a money problem, just an idea problem. And just because the seller is going to carry back 50, 60, 70, 80, 90 percent doesn't mean you can't come up with another idea for them to carry the balance back as well. All right. So second mortgages, good one. Promissory notes, good one.

What else? Profit sharing, good one. All of these are in those creative financing terms, by the way. So I'm just kind of reading from here to see what else you could use for that. Credit, the provision of money, goods, or services with the expectation of future payment. Trade, right? What does the seller really need? Remember we're problem solvers.

What is their big motivation for selling the property in the first place? Good ones, right? Equity sharing. Sharing of ownership, value and appreciation. All of those work in place of actual down payments, or they can take the place of a down payment. Okay? So there's one. Second, RIA meetings. Again, if you've been around for a while, you know this is how my fortune got started. My portfolio got started was through RIA meetings. and what that looks like is when you have a deal under contract, okay, you've heard me say before,

it's easier to find the money when you find the deal first. And define finding the deal means you have the deal under contract. And emphasis on the word deal. It does have to be a deal. There has to be an upside to it. There has to be profit. There's somewhere. There's got to be an ROI in that transaction.

And there's got to be enough. for you to be able to share with the person that's going to gladly give you the money. And what I would do is take your deal once you've got under contract. You create a little property flyer. You go take a picture of it, give it a nice little headline, and you put some small little bullet points. And when it's your opportunity at the RIA meeting to go up in front of the room during the section of halves, or excuse me, haves and wants, that's your time to shine, right?

and you focus on what the person you're looking for, in this case would be the person with the money to help you. Focus on what they want. So you're in the room with a bunch of investors, right? So you're not going to focus on the cute little house or the poor little lady that you're helping. No, you're going to focus on the ROI. You're going to focus on equity. You're going to focus on cash flow. You're going to focus on security.

You're going to focus on certainty. You're going to focus on opportunity in your pitch. in front of the room. So right here I have this property under contract. It's a three-bed, two-bath. I got seller financing in place. I need a down payment of $25,000. And I'm looking for a partner that it would be open to this type of opportunity

for an 8% return on their money over the next 12 months. So that right there, someone's like 25 grand. I get 8% over the next 12 months secured by real estate. their wheels are turning because you're talking to them. You're playing their radio station. What's in it for me? W-I-I-F-M. And then extend a call to action.

If you'd like some more information on this deal and others that I have just like it, meet me in the back of the room. I'd be happy to give you a flyer and talk about it. Boom, you're done. Under 60 seconds. And then at the end of the meeting, don't leave the meeting early, by the way. That would kind of kill your call to action.

But at the end of the meeting, go stand in the back of the room exactly where you said you were going to be. and if there are 100 people in there, there's probably a half a dozen people who resonated with your message and they'll come back and talk to you. It really helps by doing it this way. See, I don't like talking to people,

especially when I'm feeling like I'm after something, like I need to get money for my deal, that I figured out how to do it this way with a 60-second pitch, and then I only had to talk to the people that wanted to talk to me. That was the big side benefit, but it worked.

It was built out of my insecurity and fear of talking to people and asking for money. But it turned out to be an amazing strategy that I can take into any market and duplicate and recreate. But the key there is you've got to find the deal first. So if you've got this deal under contract and you 25K down and the seller is going to carry back the rest, you want to calculate your ROI on that. What's the ROI on that 25,000? So if you have a real deal, you should have a double-digit return. You should have a double-digit return if you expect someone to participate. Now you get to decide with that double-digit return,

how much of it are you willing to share with a person that would come in with the down payment? With that said, you have the deal. You have control. You have the power, even if you don't have one dime in your pocket and you feel inferior and you feel in a weaker position. You have the deal. You've done the hard work. that's why the person wants to give you their money

because they don't know how to do what you did so don't undervalue yourself. Right? So real meetings. Number three, right now would be a great time to go to Epic Fast Funding. I think you need a credit score of like $680 or more so it is credit based.

But you can go to Epicfastfunding.com. Insert just your name, email, and phone number. Hit Submit. and you'll get an instant approval with just that process. You won't even have to talk to anybody. They won't need your credit score, excuse me, your social security number. It won't impact your credit record.

It will be what they call a soft pull. And you'll get an instant yes or no. And if you get a yes, they'll give you an estimate of how much you are approved for. To be armed with some credit like that, and it's up to, what, is it up to $250,000 now credit line, at zero percent, up to 18 months. You want to be armed with that type of,

of buying power right now to be able to move quickly, right, for small little down payments. You can start, I mean, shoot, if you got to prove for 100 grand, there's 10 deals you could take down right there, just like that. And you wouldn't need to anybody. And you get it all at 0%. Okay. So a great source. If you're not prepared or haven't done that, this would be a great time to do that.

Go to epicfastfunding.com. Okay, it is credit based. So if your credit score is not where you would like it to be and you don't think it's, or if it's not above, I believe it's 680. I think even as little as 660, they can work with you and give you some actions you can take to put yourself in that position really fast. Okay, but if you've got it, nothing wrong with having that at the ready. Okay, you don't have to use it, but it gives you a lot of confidence, I guess,

knowing that you're moving forward that if you come across the right deal, you'll be able to take advantage of it. Okay, epicfastfunding.com. Number four, two sources that we have put together, Epic Funding Solutions. So it could be a little confusing. I'm talking about Epic Fast Funding for the immediate credit. These are a little bit more traditional. It's going to be hard money. It's going to be private lenders.

It's going to be crowdfunding platforms. It's going to be family offices, hedge funds. They both work kind of like Lending Tree does for your primary residence, your primary residence loans, where you submit your information of what you want to buy and then you get a number of lenders interacting with you competing for your business. This is just like that, but it's for investment property. Epicfunding Solutions.com and NewPrivatemoney.com. Epicfunding solutions.com and newprivatemoney.com.

So that's number four. Then number five, your net. network. Ouch. I thought he was going to say that. Start digging your well before you're thirsty, though. It's much easier when you don't need the money right now to start creating those opportunities. People are still going to have money after this. Not everybody's going broke. I promise you that. And many of them are going to want to participate in the opportunities that are going to present themselves, but they won't know how. I'm telling you, people with money are looking for opportunities.

Lenders, particularly your private lenders, your hard money lenders, they wake up each and every day, kiss their kid goodbye, they kiss their wife goodbye, they get in the car, they drive to work, hoping that they're going to find someone with a deal that they can give their money to. That's their job.

If they don't find you, they don't make any money that day. So they're looking for you. There's going to be plenty of people out there with money looking for the opportunities, but they're not going to know how to find them. That's not their job. Their job is to place their money. Your job is to find the deals where they can place their money. So one of the three questions that I would always ask when I started digging my well

before I was thirsty. One was just in casual conversation, this could be with friends and family or just someone that you meet at the grocery store. If it got to that point and it felt comfortable enough and then say, hey, you know, would you be open to an 8% return on your money? Key words. Would you be open to an 8% return on your money? Whatever it was. You can say 7%, 8%, 9%, 10%, depending on what type of deals you think you can find and how much you'd be willing to share. But would you be open to? And most people say, well, heck yeah, well, no, duh, of course. Who wouldn't? You get those type of answers. And you get that answer

because you asked it in that way. You asked it with what we call a release statement. Would you be open to? Okay, when you say, ask us in that way, a release statement is embedded in that question is the free space and the ability to actually say no if they want to without it being awkward, right? No, no, no, it wouldn't be open to 8%. That's ridiculous. Right? They'd feel comfortable saying that if that were the case. Okay. So would you be open to an 8% return your money? And then if they say yes or whatever it may be, huh, interesting. How much would you have available for that type of investment? How much would you have available for that type of investment? And just be quiet. Let them answer.

Oh, 50 grand, 100 grand, 200 grand, whatever, maybe. Okay? They might say, why do you ask? They might look confused. And if, you know, you get stumped there or they get stumped. You can just say, you know, the reason I'm asking is I'm working on some stuff. Might be coming up. I don't have anything right now.

So you say that to let them off the hook. So I don't know you're not going to pounce and ask them for money. money right now. I don't have anything right now, but if something comes up, you know, would it make sense for me to give you a call and share with you the details? Another release statement, would it make sense for me to call and share with you the details when it comes up? That's digging your well before you're thirsty. And all those people that say, well, yeah, just go, yeah, it makes sense, give me a call when it comes up. Boom, you've dug your well and you don't need the money yet, but now you're creating a list of people you can call once you do have the deal.

And it's not, hey, Mary, remember you said it would make sense to give you a call when that deal came up? Well, one came up today. Could we get together for coffee or have things changed? Right? But now it's not an awkward conversation because they already gave you permission to call. So people are still going to have money after this and they're going to want to participate in these opportunities. You bring amazing value to each relationship that you have and create. You bring unbelievable returns secured by a tangible asset.

you are the most valuable person in that relationship. You are the most valuable asset in that relationship. After everyone just got the poop smacked out of them by the stock market, that's an investment in an intangible asset that they have no control over. There's going to be some fear lingering around that afterwards. And diversification could be at top of people's mind right now. In a market like this, you're not asking for favors. You're not asking for favors when you're asking for money.

You're doing people favors by allowing them to invest with you. You got it? That's got to be your mindset. So number one, our sources of money, the seller, even if it's the down payment, you can still get creative with that. You can still put terms on that. The RIA meetings. Those people are there because they're looking for you. They've got money.

They're at the Ria meeting. They're looking for the opportunity. Out of all those people in the room, there's a half a dozen, a dozen of them. that have got money that want to put it to work and they can't find the deals themselves. Three, Epicfastfunding.com, get your immediate approval without talking a person, anybody without using your social security number

and without it impacting your credit score. You just get a yes or no, and then you get to decide whether you want to go forward or not. Epic funding solutions and new private money.com, the lending tree for investors. That's not what their slogans are, but it describes the situation, doesn't it? And then your network, start digging your well before you're thirsty.

Start doing people favors. because you're going to find great deals. Don't keep yourself a secret. Don't be greedy. Don't keep it all to yourself. If you need the funds to take it down, bring people along for the ride. You're doing them a favor.

By the way, if you haven't done so already, grab the two cheat sheets that I created for you, the 21 creative financing terms and templates every investor needs for a shifting market. You get free, quick, downloadable copies at epic breakthrough.com. All righty. Tune in tomorrow.

Mercedes is going to be here with a brand new episode of Turn, Key Tuesday. And if you found today's episode valuable, there's a good chance. You might know someone else who would, maybe even somebody just on your team and you want them to get the same information. If you think about it, go ahead and share it with them, ask them to click the subscribe button when they get here and I'll take great care of them.

All righty, so that's it for today. God loves you. So do I. Peace, blessings, great health, and success to you. I'm Matt Terrio, living the dream. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow.

You didn't know, home, boy, we got the cash flow. This podcast is a part of the C-suite radio network. For more top business podcasts, visit c-sweetradio.com.