Epic Real Estate Investing - Who Is Retiring First? | 1020

Episode Date: May 16, 2020

If you continue doing what you are doing right now, how your life will look like in 12 months? This can be a scary thought, especially after the huge upheaval that we experienced. Therefore, Matt shares his wisdom on how to retire your money before you retire yourself so you can get the financial freedom you deserve! Tune in and find out more! Learn more about your ad choices. Visit megaphone.fm/adchoices

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 listening. If you want it faster, visit R-E-I-A's.com.

Here's Matt. Hey, Epic Investor. It's Matt Terrio from Epic Real Estate, where we show people how to invest in real estate with an emphasis on retiring early. If this is your first time here, really glad that you found us. If you like what you hear, make sure you hit the subscribe button before you go so you never miss an episode. And if this is not your first time here, welcome back. Really glad to have you back. It's always good to see you again.

And thank you. I'm just eternally grateful for you sharing this with your friends and family. You're the absolute bomb diggedy for doing that. So thanks again. Since being in quarantine, you know, I've had more than normal interaction with my private clients. And typically, you know, when they come through the initial process, we get them up and running, we get everything set up. And they go out and they start doing what they're supposed to do. And occasionally they'll hit me back in a little bit more in the beginning.

Hey, what about this? What about that? And so we get their questions and answer, and they go on out and they start implementing again. and things start moving. And then, you know, after a few months, it's like I don't really hear from them too much except for like the, you know, just the occasional, you know, Matt, how do I dot this eye?

How do I cross this T or I've never come up against this and what would you do type thing? And it doesn't come up very often. So that communication gets fewer and further between, as it should be. If it's not a complicated business and once you learn how to do it, then most people become self-sufficient independent rather quickly, much quicker than most people would think that would be possible.

But, you know, since we've been in quarantine, I've had more than normal interaction with them, a lot more, because there's just a lot of uncertainty about the future. As the country seems to be opening up, you know, we're trying to do it slowly. We're trying to do it carefully. We certainly don't want to revert back and lock ourselves down again. But we also know that we're reaching a point to where

we don't really have a choice. You know, we live in a society where the important things of life like food and shelter and medical bills and being able to do that for our friends and our family and those that we care about most, you need money to do that in the society that we live in. So we have to go back to work. The government will not be able to support us indefinitely until we have a cure, until it's totally safe to go back outside again. And some people are fighting for that and I understand it.

You know, it can be a scary thing, particularly if you're in one of the vulnerable classes of people, it can be terrifying. I mean, I remember back when Ebola was like the big thing and, God, the pictures of that, the flesh eating disease, that was like, I don't even know if that hit America and I was scared to death of that. So for those that are, you know, most susceptible and the most vulnerable, and the, per the statistics and the data, are most likely to get sick.

I can see how this can be really scary, and you want to take it maybe even slower than we're taking it. I get that. But the government will not be able to support us forever. We may come out of this nice and healthy, but not have a country to live in. And, you know, this is, hopefully this is not being taken

as political because that's not where this is coming from. But we have to get back to work. And so there's a lot of uncertainty about that. And, you know, we're experiencing these unprecedented times and everyone's experiencing anomalies in their marketing efforts. You know, this virus is an unprecedented event for our country. It's creating unprecedented events in our marketplace as real estate investors. And, you know, some markets are thriving on the retail side of things.

Despite the 30 plus million people being unemployed, they're still doing well in some markets and the houses are selling really, really quickly, and then others, not so much. And I've interviewed a lot of people over the last, I don't know, 30 days, four to six weeks and just getting different takes on it and see what everyone else is experiencing. And, you know, there's been a general consensus, but there's been a lot of outlying opinions and experiences that are, you know, it's pointing to that, as well we've all known, real estate is local. It's not a national thing. It is local.

And so are the different economies that are opening up. They all have their local nuances and they're adapting and doing the best that they can. And God willing, I just want us to get back to normal. I know that's what you want too.

But who knows, when and how that's going to happen. But, you know, and others are getting a better response from their cold calling. They're noticing that. And others are getting a better response than they've ever received in their lead follow-up.

Like, oh my gosh, these sellers will actually talk to me now when they were shunning me just eight weeks ago. And then others are, you know, experiencing crickets in their digital marketing and their direct mail marketing when that was the lifeline of their business just eight weeks ago. So all of that to say, like, you know, like good marketers and entrepreneurs, we're adapting. We're communicating a lot more. We're getting closer. much closer to a lot of my clients.

We're modifying, we're pivoting, and we are overcoming. We are. Congrats to a few people. Just totally crushing. I just noticed this yesterday. Or saw these posted yesterday inside of our Facebook group for Follow Through Friday.

So congrats, big congrats to Mr. Chris Warren, RIA's client this week. I mean, he had a monster week. Inside of all of this, he had a monster week. He contracted a fourplex to hold with zero cash down. He got an 85% of market value and is $27,000 of equity and it's fully occupied and it's cash flowing. And he took it over that way with no money into it and with all that equity in place. And he got a second fourplex to hold for the same thing for 78% of market value, fully occupied.

He has still a little work there to do to stabilize the tenants. But he's got another property there with nothing down and nothing in on. attracted a single family residence to hold at 45% of market value, more than half off. It's a cash purchase that he'll use in and it started an 80% loan to via ASAP to get all that cash out. There's a lot of cash for him to get out of that if he got it at 45% of market value. He got a new sales agreement to close next week on a $5,000 wholesale assignment. Ho-hum, a small little deal for Chris. He closed and then closed today, or as yesterday, on a $7,000 wholesale assignment.

And so he's done really, really well during this whole thing. He's been pretty consistent with his posting. So congrats, Chris. And then RIA's client, Tim De Leon, who is doing this virtually from Australia. And he's got one deal closed this week with a $22,000 wholesale fee. Two others under contract are moving towards closing. Several offers made on leads in the pipeline. Progress on videos for the text marketing strategies that they're planning.

So he's adding a new marketing. strategies to his thing, to his business. And then Kevin Beam closed a $37,000 wholesale deal. So people are doing it. What was working for you just before the COVID shutdown might have changed. Might not be working at all. But the basics always work. The basics never stop working.

The consistent performance of the money-making activities, they never disappoint, ever. I mean, I've always said the day that they do, the day that they bite you in the butt and disappoint you will be the day that we've just got much bigger fish to fry in this nation. And we're frying some pretty big fish right now. And the money-making activities of consistently attracting leads, converting those leads to contract, and exiting for profit are still delivering sizable paydays. And that was just yesterday. And that was just as I started recording this. So who knows what else is going to happen for the rest of the day. I mean, after I record this.

But that was just a few that I just reached in and grabbed to share with you. Anyway, it's come up more, as I've been communicating more with our clients, it's come up more than once in the last several weeks of where a client comes to a coaching call with a specific challenge or a specific issue. And when I asked them, you know, why did you get involved? Let's just pause for a second. Why did you get involved in real estate in the first place? And the answer, it's always some version of financial freedom, escape the rat race, financial independence.

I want to live off of passive income. I want to retire early. I have to make up for lost time because I'm behind in my retirement plans. Something like that. But it all has to do with that big, broad brush of financial freedom, right? And then I ask, so what we're about to work on is this the best thing to be working on in reaching that original goal. And it always causes people to pause and think.

And the answer is almost always no. Sometimes it takes a minute to get there, right? It takes a few more questions to actually get to the truth that way. But we always get there to a no. No, I guess this isn't really the most important thing I should be doing right now or we should be focused on. Not if my goal was that and my goal having not changed. Maybe we should do something else.

Maybe there's something else we should be focused on. You know, I don't know if you've ever heard the story of Ben Hunt Davis in his journey to Olympic gold medal in men's rowing at the Sydney 2000 Olympics. And is in his book, good book, will it make the boat go faster? He tells his story of the process that won him that medal. And, you know, he talks about his talent. He talks about supremely focused preparation. He talks about the hard work.

but was it those things that actually won him the race? And he goes on to describe what his process was. And it wasn't just the combination of those elements. It wasn't just talent and preparation and hard work. But it was the way in which these elements were made to work together. And the collection of those three amounting to much greater than each individual part. I totally butcher that, but you know what I'm trying to say. But anyway, it's all about daily actions and thought processes, setting goals and then stretching them.

You know, elite performers, they don't simply work hard. They also work differently than the non-elite. You know, by challenging both what they do and how they do it, and by knowing what matters most, what's always most important to them, they change how they perform. They measure it and they improve. You know, each day, often in very small increments, you know, they'll focus on what will make them better at what they do.

They'll check their habits and focus on what matters most for the best possible results against the backdrop of that ultimate goal. In short, every new idea his rowing team had every action they took in preparation and every action that they took on a day-to-day basis was always prefaced by the question, will it make the boat go faster? And if the answer was no,

they either moved it to the bottom of the to-do list or they ditched the idea or the action altogether. So they knew the most important thing at hand was making that boat go fast for Olympic game day. So if financial freedom is your reason for getting involved in real estate, think about every action you take, every idea you ponder, every challenge that you bring to your coach that you want to solve,

preface it with, will this get me to financial freedom faster? And I'll give you an example. And I'll keep the name private. you know, actually this came up twice with two different clients this week. So if they are listening, they won't even know who I'm talking about because they got very similar stories. But it's pretty common anyway. So this isn't the first time it's ever happened.

It just happened coincidentally two times in the same week. And yeah, it wasn't the first time that I had this conversation, had it over and over and over again. And we frequently have this conversation at the Epic Intensive as a group. Anyway, this person will call her Josie. I like that name, Josie. I just got done watching, what was it, last night? late last night. The outlaw Josie Whales, great Clinties movie. I love that movie. But anyway, Josie, could be a guy or a girl. But anyway, she came to me with a challenge of generating more

leads and getting someone to take those calls for her because she has found herself, like so many of us, we're now homeschoolers, right? We now homeschool our kids. And so her time now is seriously limited. She doesn't have the time available to herself that she had when we got started working together. And her husband, by the way, has been employed by the same. company for more than 20 years, and he's just flat out over it. And her initial reason for coming to work over here at Epic was she wanted to create enough passive income through real estate to give him the ability to quit anytime he wants. Right?

And that's kind of where it comes out in the introduction frequently. It actually came from a client. It was kind of like, well, he doesn't want to retire yet, but he would just. just like to have the option too. And so that's where I kind of modified the intro a little bit. It was based off of their story. But anyway, it gives him the ability to quit anytime that he wants. And, you know, we just talked about that with Enrique, was it last, I don't know, a few weeks ago.

But now he walks into work every day, got plenty of passive income to retire. He did it all with one deal. He did it all, found one seller, bought a portfolio, created enough passive income that he can walk out of his job anytime he wants. But he still goes to work. But he goes in with a new posture, a new stand. and his fellow employees notice a difference around his confidence and his aura when he walks in. And he knows he doesn't have to take no crap from his boss because the day that his crap gives him just that little too much, the day that that piece of straw breaks his back, he's out of there.

And that's essentially what she wanted for her husband. And she went on to tell me that she had moved some funds around for marketing. She wanted to really ramp up and go big. She's recognized she's been listening to the podcast. She's been watching the YouTube videos. She recognizes that this is the opportunity, right? The market is shifting, and this is where she can really make some serious progress. And so she was sharing with me how she was getting everything lined up to really, like, let it go, just to unleash it.

And she shared with me that she had a bunch of money in her 401K, and then about how their house that they live in was almost paid off, how they have a few free and clear rentals. And then she wanted to know, now that she's got all this money lined up and she's got some good safety nets in place and she can dig really deep and just really go at this big, she wanted to know where the best bang for her buck was when it came to marketing. And I just listened and listened and listened. And, I mean, she had this coaching call. She had an outline for it.

She had it planned out and she wanted to get down to the bottom of it so she could make a real impact to make a real difference in her real estate business. And so I asked her the question, you know, Josie, we've been working together for almost a year now. And you're doing decently for your first year, certainly above average. You've picked up a rental and you flipped, I don't know, a half a dozen contracts and made some decent money, some actually some really good money by most people's standards. And I asked her my version of, but Josie, will this make the boat go fast?

If we get you more leads and we find you someone just a rock star to take these calls for you with all of these calls that you're going to be generating, will this get your husband to quit his job faster? And her reflex answer was yes, of course. That's why I'm asking. And I asked, you know, you just ran down your whole outline. Is there something else in there? Is there anything else that you can think of that could.

make it happen even faster and potentially even a whole lot easier. And she thought about it and she looked at her paper and, you know, and she was just kind of stuff like, I don't know what you're talking about. Like she just was so in her space of leads, leads, leads, convert, convert, convert. And I was like, I was like, well, Josie, I'll let you off the hook for a second. You just shared with me all of this money that you've moved around so you have it available for your marketing. And by just doing some quick calculations, I didn't have a pen in hand or anything, but I was kind of running a tally in my head as you were sharing this with me. You have more than enough to retire your husband from passive income with what you got.

So do you want to talk about lead generation and conversions? Or do you want to talk about never having to see your husband walk through the front door? Oregon, worn out from the day, all broken down, and just not being able to wait for the weekend so he could rest. Which one do you want to talk about? And without going into too much detail of her finances, we talked about retiring her husband, right? Well, how would I do that?

How could this happen? Of course I want to talk about that. And you're saying I can do that without having to do this. And I was like, yeah, so we went into it. I mean, she had all of this money parked. And here's the whole point of this episode. Essentially, her money was retired. You see, while she and her husband go to work every day, the money's over there chilling.

Her money is on the sand drinking fruity drinks all day while she and her husband work all day. That ain't fair, right? That doesn't seem fair to me. You go to work for that money and you just go let it take a break while you still work. Shouldn't she and her husband be sitting on the sand with those fruity drinks while their money goes to work every day? So two things here. One, are your thoughts and actions making your boat go faster? That's kind of level one of this conversation.

But where we're really going is number two, are you retiring your money before you are retiring yourself? And you just got to ask, you know, what's most important to you? Are your thoughts and actions congruent with it? Way too often, I find them to be in direct conflict. Right? She's trying to work harder, not get free. And I really got clear on this years ago listening to a Tony Robbins' audiobook. He's still to this day.

He's still the best. There's so many copycats and imitations and people wanting to be him, trying to be him, wishing they could be him, he's still the original. He's still the best. and, you know, even his book, Awaken the Giant Within. And wouldn't you write that 30, 35 years ago? That book is just as good today as it was the day he released it.

Anyway, my point being, I was listening to Tony Rahma's audio, and he was talking about essentially the same thing. And it was such an eye-opening experience. It was such a life-changing experience for me. And it's what gives me just the conviction and the passion and the excitement to share with you what I'm sharing with you right now. And one of the reasons people in this audio, one of the reasons people don't have what they want in life

is because they have conflicting values. They value things. Like we all have different values. But if you don't have what you want in life, it's because two of those major values are in direct conflict with each other. So they're fighting each other. So how could you make progress

when internally you're fighting against yourself? And for example, you know, everybody wants freedom. Everybody wants that. That's why they get into real estate, right? Whether it's directly or indirectly, we all want that, that dream of passive income,

that dream of wealth creation, that dream of leverage, that dream of running a business, the type of business that has produced more wealth than anything else on the planet. We want that. And they want security.

Everybody wants freedom and everybody wants security. They want security. certainty. They want safety. They want security. So those two things, particularly while you're building them, I mean, they go hand in hand as you're building them, but you can't have them both, not while you're building them. Ultimately, the freedom will give you security. But if those are your values right now, when you're trying to hold on to both of them right now, you're going to end up never having either.

You can't have freedom without risk. And you can't have security with risk. So most people end up never getting either. And by the time they figure it out, typically when they are forced to figure it out as they've run out of options because they've tried so much stuff in life, you know, three-fourths of their lives have passed them by.

And now, who cares? I mean, it's like you throw your hands up in the air and you're like, I don't know what else to do. And you're living a life of regret. And there's not enough years left in your life to do anything about it. Now, I'm not trying to depress you, not by any means. I mean, who in the world needs that right now, right? We need some optimism. We need some positivity.

But I am trying to get you to look at your actions or your inactions. what are you not doing that you know you could be doing more of? I want you to look at your actions and your inactions and confirm with yourself that they are in alignment with what is most important to you. You know, in most of our scenarios, freedom is going to come as a result of building a rental portfolio. That's where it's going to come from. Yet it comes with the risk of deploying your time, your resources, and any idle finances that you may have. we don't want to tap into those idle finances because that's what represents our security. Right?

So if you've got equity in your home and it's there chilling while you're out there trying to produce freedom, that's your security and your freedom and conflict or your 401K. I don't want to touch the 401K because of penalties and taxes. So I'm going to leave all of that money there so I can go out and work because I don't want to have taxes and penalties. But let me ask you this. What's more important? Your freedom or avoiding the taxes and penalties. Just pluses and minuses, right?

We put these labels on it or somebody put labels on it called taxes and penalties. And that sounds really, really bad. But it's just a math equation, right? they're just negatives. You just need more positives than negatives, and who cares? If it gets you to what's most important to you. That's the key thing.

Some of you might be, Matt, how dare you? How irresponsible of you telling people to cash out their 401K? I'm not telling you that. But I am saying, are you holding onto that? Because you're holding on to that, it is costing you what's most important to you,

your freedom. That 401K, I've been at this job 20 years, I got the employee. match and 20 more years from now, I'll be able to pull it out and it'll be all tax-free or tax-deferred or I won't have to pay taxes on it until then, depending on what vehicle you have. But you robbed yourself of your freedom for the next 20 years waiting for it. And freedom is that the most important thing to you. If it is, it's something that you just want to look at. You just want to consider it, okay?

So if you continue doing what you're doing right now or if you continue not doing what you're not doing, what you're not doing, right now, you know, look down the road 12 months from now. If you continue doing what you're doing, what is life most likely going to look like 12 months from now? And I'm sharing this with you because that can be a scary thought for a lot of people, particularly as we've had a whole upheaval in our lives. And, you know, maybe our productive and our habits that are good for us have been altered or shifted a little bit, been derailed.

I'm not sharing this with you to depress you. I'm sharing this with you so you can do something about it before it's too late. This should be exciting to you. Oh my God, Matt, you're right. Thanks for waking me up.

But if you continue doing what you're doing right now or not doing what you're not doing right now, what will life look like for you in 12 months from now? Now, project that, doing exactly what you're doing right now, what will life look like five years from now? Five years down the road. will you have the same $300,000 in your 401k in primary residence and still be stressing out,

needing to generate leads and flip that next house so you can pay the bills? Or will you have deployed your $300,000, creating enough passive income to pay your bills now and then? And then without stress, flipping houses. Which one sounds better to you? It's up to you. It's my question. It's your answer. and there's not a right one or a wrong one.

But the big question is who is going to retire first? Who is going to be free first? Your money or you? You know, we're moving into a market where you won't even need all $300,000 to retire yourself. But even if you did, wouldn't it be worth trading that to be financially free? I don't know. It's up to you, like I said. You know your situation better than I.

do. The point being is you don't need a lot of money to make this happen for yourself to get to your financial freedom. You don't need a lot of money for that. But you do need a lot of ideas. And here, we call those ideas terms. And it's those terms with just a little bit of money that will set you free in a market like the one we're heading into where the pendulum starts to swing back toward the buyer, even if it's just a little bit, the opportunities are going to open up a lot. That's all we need. And we just need to arm ourselves with more ideas

and in different ways of doing this business. And that freedom can be yours really, really quickly in this type of market. You know, I was just texting back and forth with Josh Swanson. He helps me out with my clients and, you know, very accomplished seven-figure wholesaler. and I'm really privileged to have him working with us. He's a really great dude.

And we were just going back and forth. And we were talking about how he does a Thursday. We both do a Thursday night call. He does one at 4 p.m. Pacific. And I do one at 5.30 p.m. Pacific. And we were talking about how many more people we're having on our calls lately during this quarantine. And he said, where to go? Oh, we had a bunch of new faces on the call last night.

people I've never even seen before, and the message is really resonating. I think you're going to make a lot of people financially free in the next few years while everyone else is just pitching video walkthroughs and trying to sell the cash buyer's site unseen and do it all virtually. And he's totally right, because this is the market that the type of market that I built Epic in. So there's nothing I know better than what we're headed into right now. And it's a little bit exciting to me, and I'm getting a little bit more excited. One that the economy is opening up and the economy is opening up because we were able to flatten the curve.

And unfortunately, there are people that lost their jobs and there are people that have lost their businesses. And a lot of those people that lost their jobs won't have companies to go back to. And a lot of those people are going to be property owners and they're going to need some money. And they're going to look to their property as their asset that can save them. and so they need someone like us to come in and save them. And I'm excited about that. I'm excited about being a part of the economy. What do they call it?

Stimulating the economy. It's our own little stimulus package. Us right here at Epic can make a big difference. There's a reason that real estate is one of the last and final tax shelters available to the average person. Because the government knows if you go out, and buy houses, fix up houses, provide housing, that's good for the economy. It's work that they don't want to do, but they know it does help the economy directly. So they directly give you tax breaks for that.

They reward you for that. And so we're just kind of, all that stuff is going to be converging here, and the opportunity is going to be created for us to do more in the next, I don't know, I can't even give a time frame because I don't have the crystal ball. but the window is opening and it's going to remain open for a little while, how long it will be, I don't know. But you want to get in while it's big enough for us to all get in. And it's where these creative terms are really going to come into play.

And it's where you're going to be able to create a lot of passive income for yourself without deploying a whole lot of money. You see, you don't have a money problem. No, you got an idea problem, right? And that's what we've been talking about, are all these different ideas, what we call terms. So if you want a list of those creative terms, if you haven't got it yet,

you can grab them for free at epic breakthrough.com. There's just a list of terms. One person had said to me that he says, what is this? I got these terms and I already know all of these. I was like, yeah, but are you using them? Right? It's really funny.

That old Chinese proverb to know and not. do is to not know. So at the very least, refresh your ideas with them if you already know them. And then with that, you'll get a bunch of different deal structured templates of how you can combine those terms to create this passive income for yourself. So you can create this financial freedom for yourself without using very much of your own money. You know, the client I was talking to was actually, and she didn't even realize it. And I think that's the case for a lot of people. You have more to work with than you actually realize you take for granted. of what you actually have.

And she's got a bunch by most people's standards. And, you know, she's not even going to have to really use all that much of it. But she does have enough to go ahead and set her husband free or give him the ability to be there. Right. So anyway, I'm rambling. I'm going to wrap this up. This is so much fun for me to discuss this with you. And so thanks for lending me your ear.

Thanks for giving me your time. Thanks for, I don't know, putting your trust in me, I guess. And if you don't take action on what I say, if you just sit there and ponder and, hey, that's a new idea. That was interesting. That's fine too. I hope it does cause you to broaden your horizon a little bit, though, and create some new opportunities for yourself. Because that's where the opportunities come from, right? If we've got this narrow focus, we're just going to be, we're just going to have access to the opportunities that lie within that focus.

But if we broaden that focus, we broaden that horizon, new opportunities are available to us. And you get to choose which ones you want. And some aren't all going to be a good fit for every. everybody, but choose the ones that are a good fit for you, the ones that feel good, that the ones that move you towards what's most important to you the fastest. I hope you at least challenge yourself a little bit to get out of your normal way of being, to get you out of your comfort zone. You'll find, though, once you do, get out of your comfort zone, once you just get out of

that comfort zone for a little while, and then challenge your own ideas, challenge your own actions, you're going to look back and notice that that comfort zone wasn't all that comfortable. So who do you know? Who do you know that might also find this episode valuable? When that person comes to mind, share this with them, please, and ask them to click the subscribe button when they get here. And I'll take great care of them. All righty?

That's it for today. God loves you. And so do I. Health, peace, blessings, and success to you. I'm Matt Terrio. Living the Dream. 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.