Epic Real Estate Investing - Wholesalings 5 Myths Debunked! | 1099

Episode Date: November 19, 2020

Lately, Matt has been working with a few new wholesaling clients, and believes they have around this type of exit strategy is pretty remarkable! Very often, these beliefs are FALSE! Therefore, in today’s episode, Mr. Theriault debunks 5 myths on this topic and ultimately reveals why wholesaling is a type of trade rather than a path to financial freedom! Tune in and find out more!   Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Yo. I'm not sure for what you came for. Throw you smoke up your ass seminar. It's next door. Line your tips up, man, just like an X-4. All you're winning and you're wanting, yo, that's what we check for. I'm building piles of cash, create cash flow.

Epic real estate investment that makes your cash grow. When I can tell you ain't work this is hard at all. Tell people you work hard, you ain't working hard at all. Go deep with your investment. You're all going wide. Too cold for your. Yo, you need to go inside. It's not a money problem.

It's an idea problem. Epic real estate. Investing man, that we can solve them. Scared money, don't make money. Passing income, cash flow. Yo, how you create money. Savers and losers. Open your eyes and see them.

Matt, there you are creating your financial freedom. Yeah, yeah, we got the cash flow. Huh. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. Yeah. Taking it back. I missed that song.

I wanted to hear it. That's my buddy Mike, by the way, if you didn't know, he was the very first artist that I signed to my record label. And he's still putting it down today, making music, and he made that one special for me just for the show. Hey there, Epic Investor. It's Mad Terrio from Epic Real Estate, where we show people how to invest in real estate

with an emphasis on retiring early. It is the Epic Real Estate Investing Show. And I do this show because I know that most people are living a life of financial sacrifice and betrayal. So what we did over here is we built a system that creates an opportunity for one's money to work harder for them than they did for it, saving them and their families from a lifetime of financial worry. I know that real estate works, and I just believe everyone deserves a chance to know about it and how to do it if they want to. So if this is your first time here, really glad that you found us. If you like what you're here,

make sure you hit the subscribe button before you go. And if this is not your first time here, welcome back and thank you for sharing this with your friends and family. I really, really appreciate that about you. I love that about you. So thanks again. I just got back from the dentist, by the way. My mouth is feeling really fat. You know that feeling, but I'm going to push through.

So in the news this week, SpaceX launched four astronauts to the International Space Station in a milestone for the country's commercial space ambitions. So congrats to SpaceX. And Dustin Johnson won the Masters this last weekend at 20 under par. The tournament's lowest score ever. Now, Tiger Woods didn't fare as well. As an example, he carted a 10 on the notorious par three to make history for all the wrong reasons. If you're a golfer, you know what that feels like, I'm sure.

It happens, though. Tiger, you're still my dude. Bacon and kegs. If you're looking for a holiday brunch place, waffles, house just introduced their bacon-infused beer. Bacon and beer. Too much of two good things? I don't know. I'll let you know. Airbnb released its long-awaited IPO filing this week. The company took a huge hit on second quarter. They watched their revenue drop 72%. That's a lot. But only to mount a furious comeback, mostly thanks to an unexpected number of people renting properties in rural areas in the United States.

it even turned a profit last quarter on $1.3 billion in revenue. So, congrats to Airbnb. And what's new with COVID? This thing just won't go away. Well, here are the grim stats, as we know them right now. We've set new records seemingly almost every day. With testing has now hit 1.490, so almost 1.5 million tests in a single day every day. And the new cases, up to 100, $150,000. Hospitalizations, 67,000. Now, I just listened to Adam Carolla's podcast this morning, and Dr. Drew was on, and he said, hospitalizations are way up because of how the doctors are treating COVID.

When you test positive, they actually are requesting you to come into the hospital to make sure that they can treat you and treat you appropriately before, you know, things escalate and then you have to go to the hospital. So I didn't know that. And the stat certainly won't show that and the news certainly won't share that either. But Dr. Drew, he's a real certified doctor and that's what he said. And if there were a positive outlook to these numbers, it would be in the daily deaths. 1,100, a tragic number. But we're doing much better because that's half of the daily peak back in April. So we've set records, the single day records in testing, in new cases and hospitalizations. But the deaths are half of what they were. at the peak in April. So it is clear. We're getting better at treating this thing that even with exponential growth

and testing in cases, deaths are not even close to keeping up in that growth. So that's relatively good news. Maintain your vitamin D.C. and zinc and your exercise regimen, as for the time being, it's your best defense against the pandemic. But no one is still telling you that. So I will continue to do so.

And of course, all the obvious stuff that you hear on a daily basis. Wear your mask, social distance, wash your hands. All right. So there is some more good COVID news, though. New data suggests that COVID-19 immunity, which comes after a person has contracted and recovered from the virus, could last for years. So that's good. Even more good news. This week, the FDA issued an emergency use authorization for the first ever COVID-19 test that you can take at home. And in even better news, it provides rapid results. I don't know where you get that. I guess a good Google search could reveal that, but that happened this week. And wait, there's more. Monday mornings, they seem to be the new Friday

afternoes, don't they? As Monday this week, Moderna announced its vaccine was 94.5% effective in phase three clinical trials. Just one week after Pfizer bragged about its vaccine was over 90% effective. I think Pfizer, as I just saw today, they came and updated their stats. And so they are 95% now effective. So it's a battle who has the most effective vaccine. So they are 0.5% more effective. And regardless of Biden's subtle attempts to take credit for this unprecedented progress, say what you want about President Trump. Yes, he is still president. Operation Warp Speed was implemented on his watch. And it's proving to be a success as Johnson and Johnson announced that they are close, very close to announcing the results and looking for approval on their vaccine.

So we've got like almost three vaccines here we're going to have within the next week or so. We've got two right now and the next one's coming up really soon. But Kamala Harris says she will not take the vaccine if Trump recommends it. But if he doesn't recommend it, she will. I thought that was hilarious. Trump Drainment Syndrome is still alive and kicking. Wall Street, though, doesn't seem to care. as the stock market is setting new records seemingly daily.

Got an update for the stimulus package. Actually, the update is there is none. Democrats and Republicans have not met for weeks and their current proposals aren't even in the same ballpark. And governors across the United States are asking for federal help as they dial up restrictions on businesses and social life. But what about the people, right? What about the people as restrictions on their businesses

and social life are being dialed up as well. The Democrats and the Republicans got to get in the middle here and come to some sort of agreement to help the people that just put them all in power. We're going to have to continue to wait, though. But we'll keep our eyes on that. And if anything happens,

I'll certainly let you know. Question for you, when are two pizzas worth $340 million? Well, in 2010, a software developer bought two pizzas for 10,000 Bitcoin. And after this week's rally, a single Bitcoin is now worth more than $17,000. I think it's $18,000 as I'm recording this. So that's tantalizingly close to its all-time high of nearly $20,000 set during the crypto frenzy of December 2017.

Can you imagine if you were that pizza delivery boy? That would be, you exchange those two pizzas for $10,000. thousand Bitcoin. If you held on to those, that's $340 million. You could like almost retire on that. But the Bitcoin thing, no one's really talking about it. Whereas in late 2017, you couldn't turn on the news without hearing a Bitcoin update. The conversation this time around, though, has been much tamer. The crypto bulls, though, think that reflects a more sustainable path forward rather than the wild speculation that drove prices higher three thanksgivings ago. All righty, that's it for the news. let's talk real estate. Over the last few months, I've been working with quite a few new wholesaling

clients. And so this has been really fun and exciting. I love working with brand new people. And they're not necessarily wholesaling clients. They're just clients who say they want to just wholesale. And most of them have already invested a considerable amount of money into other programs, other mentors, before we ever met. And so that's kind of coming, they're coming to me with that idea that this is all that they want to do. And the beliefs that they bring with them, we start working together. It's pretty remarkable. Much of it is just downright, not true.

And it's really no wonder they're still searching for help in this very simple business. There are five that have kind of keep resurfacing what I'm now calling myths about wholesaling. And I continue to hear these from new clients. And so I want to, I just make a podcast about it and make it required listening before we hop on our first call. But anyway, myth number one, let's go through them. Five of them. In no particular order. Myth number one.

Wholesailing is fast money. Well, it can be. But it depends on a number of factors. Number one, your experience. Are you just getting started or do you have a few deals under your belt already? Do you have experience even talking to people, right? Do you have any experience in sales whatsoever? Or are you coming from?

a cubicle in the IT department who never gets to talk to too many people. You've never been an entrepreneur of any regard or in any capacity. And maybe you're scared and timid and introverted. All is not lost, but the fast money might come a little bit slower for you. So your experience does play a role. Number two, your resourcefulness does the slightest obstacle stop you, right? Where you raise the white flag until you get some help. or do you find a way?

I'm finding that to be a common denominator amongst my most successful clients, my most successful students. Is there resourcefulness? That's a Tony Robbins quote even. He says it's not your resources that are going to determine your success. It's your resourcefulness. So find a way. Number three, your desire.

Do you really want it? You really want success in real estate, right? And I have to ask this question typically on our very first call with a new client. is, you know, I'll ask where do they want to be, where are they now, what's in the way, what's in the middle, what are the challenges that they're dealing with? And on a scale of 1 to 10, what is their commitment to removing those challenges? And, you know, most people say 10. Some people say 11.

Every once in a while, I get an 8 or a 9. And when I get an 8 or a 9, we have to have an entirely different conversation before we can proceed. Because your desire is really important, particularly. in the beginning. Because stuff, it can be confusing. It can be overwhelming. It can be discouraging. You know, is this something you're just trying for 90 days to see if it works,

air quotes around it? Or is this a long-term plan? Even if results don't come fast. So how badly do you want it is really key. And then number four, which potentially could be the most important one, your work ethic. Are you willing to get up every day? and do what's necessary regardless of whether the day kicks you in the teeth or not.

Sorry about that. This Nova Cain is still lingering with me. And my lip is not moving as fast as I am trying to speak. Anyway, if you've got the desire and the work ethic, though, success, it's available to everybody who gives it a go. There are no exceptions. It doesn't, what the great thing is about this real estate business is it doesn't discriminate. It just cares about what you do. how well you do it and how consistently you do it with persistence, right?

It's available to everybody. The experience and resources will come as a byproduct, but everyone grows at different speeds. But like I said, if you do the right activities, you do them consistently and you do them with persistence, everybody grows. So that's myth number one. Wholesailing is fast money. All that to be said, if it does happen fast, don't be surprised.

You didn't do anything wrong because it does happen. It's not uncommon. Myth number two, wholesaling is real estate investing. No. Wholesaling is an exit strategy. And it's a subset of the big three exits. There's flip, there's hold, there's finance. And wholesaling is a flip.

You know, you might not, it's not a fix and flip, but it is a flip, right? I mean, you go as far as so many people have, you could make a business out of flipping properties like this. But it's not investing. It's trading. no different than day trading stocks or trading cars or visiting garage sales on the weekend and rushing home to throw the treasures that you just found, throw those up on eBay to see how much you can get. It's just buy low, sell high.

Actually, no, it's buy low, sell low, and do it quickly. That's what wholesaling is. It's just an exit strategy. It can be used as a kicking off point to put some money in your pocket. But it is not real estate invest. Myth number three, wholesaling is illegal. I find this one funny that people come to me and want to become wholesalers, and then one of the questions they ask is, well, isn't it illegal? No, although there is a lot of pushback from the National Association of Realtors, the lobby group.

They're one of the biggest lobby groups in Washington, if you didn't know this. They're trying to make it illegal, but it's not. You know, some states have drafted legislation addressing the issue. They even use the word wholesaling in their legislation. Illinois and Ohio come to mind. I'm sure there's others, but those two specifically I know of. But it's not illegal to assign a contract or conduct a concurrent close or what the future of wholesaling, I think, will likely become,

and that is securing properties with an option contract and then selling the option. There is some gray area, though, on how to, to market a property that you have under contract, one that you don't own yet. I know Ohio, the workaround, that is to market that you have a contract on a property at this address, and you can sell the contract, but you can't sell the property. I'm not sure exactly how that works, but I've got some good friends in Columbus. RJ and Dave, if you're listening, you guys put me up on this and made me hip to this. I'm not sure how that works, but they're still wholesaling,

and they've been doing it for years even after that came down. I shouldn't say that in case the authorities that be are listening. Nobody listens to the show anyway. So as I've been saying for a while, just stop calling yourself a wholesaler, just like RJ and Dave did. They're not wholesalers anymore. And don't you call yourself one? Don't identify yourself as one.

Because you're placing serious limits on yourself and your potential if you do. regardless of what the law may say or what may come down and how the laws may change. You're a real estate investor and your intent in going into every contract is to close on that contract. That's your intent. Buy, hold, and rent it. That's the fastest path to financial freedom anyway. So if financial freedom is important to you, your intent for every property should be to do

just that. Buy, hold, and rent. If financial freedom is important to you. though. Now, there will be some instances, many instances here and there, when after you've conducted your due diligence before you close, you may decide that you don't want to close on that property because you don't like what you found. It doesn't fit your portfolio. And you go back to the seller, maybe the seller won't make any concessions to allow you to close under price and terms that do work for you. And then in those situations, then you can assign the contract with someone who is willing

and able to close. You can make some money on the deal and then you move on to the next one. Right, but wholesaling is not illegal. Myth number four, you need a big buyers list. And I've heard this not only from clients, but from trainers and trainers that I highly respect, some very close friends of mine.

And I just couldn't disagree with this more. Because first, a buyer's list alone, that's not going to make any money. That's going to do absolutely nothing for you. You still need to go out and find the deal. All of Buyers list really does is just it gives a new investor the confidence, a false sense of security, really, to go out and look for deals. But when they find a deal and if their list doesn't find or doesn't want what they found, they blame it on the list and think they

need to go make an even bigger one. And what's actually happening is, and it's subconsciously, but this is what's happening is, first, you just don't have the deal. that you think you do, and you feel you need a bigger buyers list, hopefully one big enough with the hopes that there's a bigger sucker on that list than you. And sometimes there is, and sometimes that works. But it's not a good way to conduct business. And you're going to start to create a reputation of just having BS deals. And your buyer's list will stop opening your emails. They'll stop paying attention to your text messages. You don't want that reputation. if what you find are good deals, and this is where your focus should be, is finding good deals.

That's your job. Find good deals and get them under contract. And if you do that, you will add to your buyer's list every time you market a property, even on the very first one. And it'll get bigger and bigger and bigger. And before you know, you'll have a huge buyer's list. But what you're going to find is you're going to be selling all of your deals to the same person or the same two or three people. You can have this big giant buyers list, but you got the same people that come around every single time to pick them up. And those two to three people, that doesn't constitute a big buyer's list.

You just need to market good deals. And those good buyers are going to find you anyway. And my last thought on this is, it's much more difficult to find properties for buyers than it is to find buyers for properties. You got that? It's much more difficult to find properties for buyers than it is to do. find buyers for properties because it's so difficult and it can be very expensive to try and target your marketing to find just the right property for just the right buyer because marketing is going to bring in all kinds of stuff and what do you do with the stuff that doesn't meet

your buyer's expectations just throw it away no you're going to go out and market it and find a buyer that does it and you probably sell that one before you find that perfect property for the buyer that you're shopping for or that you're marketing. for. So, like I always say, find the deal in the money, or in other words, the buyer, they'll find you. If it's a good deal, there's no shortage of money in the system for a good deal. So that's myth number four. You need a big buyer's list. Myth number five, wholesaling will create financial freedom. Another big no. And it kind of runs in with, I think, myth one or two, but it is distinct. I mean, you may achieve financial independence wholesaling properties, and you very well

make a whole lot of money. There's a lot of people that do. But you'll never be free. Because as soon as you stop finding and flipping deals, your money stops. It's a job. You know, you get to be your own boss, but it's a job. You also get to be your own employee. It's simple, but it's not easy. It's worth it, yes, as you don't have to be ultra successful for it to pay really well. But it's a job. When you stop working, the money stops flowing. Real estate is the final frontier where the average person has a legitimate shot at creating

epic wealth. But it ain't going to happen through wholesaling properties. Buy, hold, and rent. Do that. And real estate will keep its wealth-bearing promises to you. And if you'd like to go deeper to see what this looks like for you, let's hop on the phone to brainstorm some ideas for you and your business. business, go to R-E-I-A-Ase.com, answer a few short questions, and pick a time for us to chat.

And if you found this episode valuable, good chance you know somebody else who would find it valuable as well. And when their name comes to mind, please share it with them. And then 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. Huh, yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. We didn't know home boy, we got the cash flow.

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