Epic Real Estate Investing - Why Real Estate Will or Will NOT Work for You | Episode 156

Episode Date: May 5, 2015

Anyone can invest in real estate, but not everyone will. Here's why... ------- The free course is new and improved!  To access to the two fastest and easiest strategies to a paycheck in real estate, go to FreeRealEstateInvestingCourse.com. What interests you most? E ducation P roperties I ncome C oaching Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terrio Media. Podcasting from Terrio Studios in Glendale, California, it's time for Epic Real Estate Investing with Matt Terrio. Uh, yeah, hello, and welcome. Welcome to the Epic Real Estate Investing podcast, the place where I show people how to escape the rat race using real estate. And you just shift your focus from making piles of money to making streams of money, change that one thing just one time and you are on your way to financial freedom to financial independence it's not the most exciting path but it is the fastest and once you get there life

then becomes exciting all righty uh i just want to begin by thanking all of you for reaching out to me this past week uh regarding last week's show i haven't received that much feedback i think uh ever actually and I actually went back. I was like, wow, this was this really struck a chord with people. This really, you know, impacted people. And so what I did is I went back and I listened to that episode. I listened to that yesterday just to listen from your perspective to try and, you know, put my finger on what was so compelling. And, and I guess it was just, you know, the overall theme that you've got to protect your thoughts. I think a lot of you kind of learn that you haven't been. and you can see where that's been a source of struggle for you.

You know, it's really easy for your thoughts to be influenced. You know, in either a positive or a negative way based on what you allow your brain to consume. You know, whether that's from your immediate friends or your family, the news, the internet, to your own personal experiences. You get what you focus on. So, focus on good stuff. and it's good stuff that you're going to get. Focus on on why real estate will work for you. And it will.

If you focus on why it won't, it won't. It won't work for you. Because, you know, just what you think about comes about. And you know what? I ain't perfect, not by any stretch of the imagination. I am, these thoughts come into my head all the time. I got to tell myself, I got to remind myself all the time. I got to tell myself this all the time.

you know, Fernando, who used to work here, used to say, frequently he would say, Matt, you need to go back and listen to one of your own podcasts. So I am not perfect. And I got to remind myself sometimes several times a day. And my exact words to myself are, and you can borrow these if you'd like. The words I say to myself when things just aren't going right, I'm like, stop focusing on what's happening and focus on what you want to have happen. stop focusing on what's happening and focus on what you want to have happen. In fact, I used to have a sign on the back of my office door that read that. You know, when I was in my office and my office door was closed, I couldn't help but see it. It was right there staring me in the face. It was a constant reminder when something didn't go as planned. I mean, those words, they would get me back on track. Those words worked for me.

And they still do. So when you shift your focus, see, from what's happening to that of which you want to have happen, what that does is your actions change. It changes what you actually do. Your actions start producing the result that you want, rather than sitting there wallowing in your unmet expectations. So while I was listening to last week's episode,

something actually jumped out at me. And it's something I really think is worthy of sharing. I probably should have included it in last week's episode, but it's worthy of an episode all by itself. You know how I always say here to first find the deal? That's the first thing that you should do. You've heard me say that ad nauseum many times. If you do that, the reasoning behind this is if you do that, then the money you need for that deal will find you. That's exactly how this business works. But still, many new investors, they struggle with this part. They don't get it or they don't understand it. And they likely won't ever understand it.

They'll never get it completely until they do find that first deal. And here's what I mean. Let's say you take that leap of faith on what I say and you forget the money and you go out there and just find the first deal. And you're just going to worry about the money later and you do find a deal. And then you start looking for the money for that deal. You may look for a buyer of that deal through marketing efforts or you may look for a hard money lender through a Google search or asking for referrals or you may look for a partner to come in with you on the deal. So you invest some time looking and let's say you come up with nothing. You come up empty handed. So if that happens, where did it go wrong? I mean, if you found the deal first, how come the money did not find you?

was I full of BS? Or did you not have a deal? It really depends on what you focus on. What you focus on is what will be so in your reality. But that's not the point I'm trying to make here. If you can't find the money for your deal, then either one, you didn't share your deal with enough people. You're marketing it lacked exposure.

Or two, it wasn't that. a deal. And it's almost always number two, by the way. It wasn't a deal. It's almost always number two because real deals don't need a lot of exposure to find the money. I mean, there's, there is no lack of capital out there for genuine real estate deals. Again, not the point I'm trying to make, just worth mentioning. The point I'm trying to make is, let's say you ignored my suggestion to find the deal first, and you went out to find the money first. Then, what typically happens is what I did discuss last episode. You focus more on the cost of the money and you lose sight of the deal entirely.

You lose sight of the deal because you don't even have one. And that's all you can focus on is the source of money and how much it's going to cost you. And then you end up saying things like, this hard money is too expensive or epic fast funding's fees are too high. Or you say something like, My brother-in-law wants too much of a return on his money. And here lies a couple of problems. First, you've made a decision that your money source is too expensive so you don't access the money.

You decided that it's too expensive so you don't even move forward with it. So you don't have any money. But what's so here is you don't have enough information to determine whether or not your money source is expensive. I mean, it very well may be expensive, but you don't have enough information to determine that. It may be expensive in your mind. It may be, and that may be based on your situation. It may be based on you, you've come up with that conclusion based on your past experiences

or maybe someone that you know's experiences. But if your deal will return 30% on whatever you put down, then all. All of a sudden, that money you said was too expensive or it was too difficult to access, all of a sudden doesn't seem so expensive, does it? And it's much easier to get, isn't it? You see, you need both sides of the equation. You need the cost of the money and the deal to even formulate an educated thought, to even come up with an educated decision as to what's good for you or not,

or what's good for your business or not. So that's the first problem. You don't access the money. You don't have a deal because you don't have a deal to put the fees attached to the money in perspective. So that's the first problem. So you do nothing. And you're right back to where you started. Now here's the second problem.

Let's say you've been listening to me all along. And let's say you listened specifically to last week's episode. And you've just decided to ignore the fees. I'm going to ignore the costs. I'm going to ignore the high interest rate. your brother-in-law wants in exchange for using his money, you're going to ignore it all. And you just say, yes, I'll take it. Now, now you've got the money.

Now what do you have to do? You got to go find a deal, right? Now you still got to go find a deal. And let's say that deal that you do find is the first deal that I just mentioned earlier, the one where you couldn't find the money, the one where you may have concluded that I was full of BS because nobody would buy your deal and you're going to show me right guess who's going to buy that deal now that same deal that nobody else would buy you've got the money in your pocket who's going to buy it you are that's who

that's just human nature we've got the money so we spend it if we find the money first we naturally become buyers of real estate. And we forget that we're supposed to be shoppers of real estate. It takes discipline to be a shopper. It takes discipline to be an investor. And so, once you do purchase this deal that nobody else wanted, you will eventually learn why no one else wanted it. And you then come to the conclusion that real estate doesn't work.

this real estate thing is risky. I'll never do that again. That's the lesson you walk away with. And now, every chance that you can, every chance that you get to share about your real estate horror story, you do. You seize the moment and you share that horror story. And what happens is your story stops the next person from even trying. Very much in the same way someone else's horror. story you've heard in the past has caused you to pause. It's happened to all of us. That horror story

actually that someone shared with you may still have you flat out stuck right now. This is how it happens. You get what you focus on. If you focus on the horror, horror is what you will get. You know, the only thing standing between you and your goal is the BS other people tell you. and then you start telling yourself as to why you can't get it. So that's the message of last episode. Protect your thoughts. No stinking thinking aloud in this game. The message of this episode is whether you followed my advice to find the deal first

and trust that the money will find you, or you follow the advice of someone else that no money down real estate doesn't work because you need money to invest in real estate. It doesn't matter to me. regardless of of who you believe, who you decide to follow, the unequivocal truth is you still have to find a deal. None of this works. None of this works unless you, one, find a deal and two, find those deals consistently.

None of this works unless you can do those two things. And with that being the case, forget about the money and become an expert at finding deals. become a deal-finding machine and money, regardless of what it costs you to access it, will never be a problem for you. You see, the person with the deal calls the shots. That's the hard part. If you're finding the deal, you're the one who's in control. The person with the deal calls the shots, very much in the same manner as the person with the money calls the shots

when you don't have a deal. Either you call the shots or someone else will. So focus all of your attention on finding deals and the shot caller you will be. All right. Stay right there. I've got something special for you today. I've got a recording of one of my new VAs working the phones for me.

As you'll hear, you're going to hear that you've got better things to do with your time than what this VA is doing for, for me and what the VA could do for you. I mean, just imagine someone like this screening your calls and setting you up to win, setting you up to speak with only the motivated sellers. I'm going to play that recording for you in 30 seconds right after this. Sales pitch? Sales pitch?

We don't need no stinking sales pitch. Here's the ball busting truth. You can make excuses or you can make money, but you can't do both. Get the new free book, Epic Freedom. The two easiest and fastest strategies to a paycheck in real estate. You heard right. No sales pitch. It's free.

Go to free epicbook.com. No more excuses, just real world strategies to making real money in real estate. Free epicbook.com. Free epicbook.com. Yeah, hi. I'm Mark with properties. Am I speaking with Brenda? Yes.

Hi, Brenda. You left us a voice message. We're currently interested to, you know, check out the property that you're selling. So I think that you guys call me in reference to a house that is our family home, and I'm not interested in selling it. But I'm a realtor. And I have a house that I'm going to be putting on the market. They're off of Raney, which is about three blocks from the house that you saw on Robert. Okay.

And was just interested in knowing if you would be interested in that house. Yeah, that would be great. Okay. And what's the property address? It is 12. I have a sign in the yard, citywide, a coming soon sign in the yard. It's right there off of Mississippi and Ramsey. Yeah, Ramsey.

There's like a little convenience store on the corner. And it is that house and a lot next to it. Said it's 12. Is that correct? Uh-huh. Uh-huh. 12. Ramsey.

Ramsey. Okay. They have a, they have the zip code for this? It would be easier for us to like, you know, do a one. Okay. Seven. Okay, go. 7, six.

Yeah, it's in the Morningside area. Okay. This is one to three. Ramsey, right? Let me, uh, okay. It's a family, it's a family's friend and her mom passed away. So they're going to be, they're going to be selling the house. They're having, um, they're going through pro.

right now to make sure title is clear and all that good stuff. So at the time, I didn't realize that they hadn't already done that, so I went and put my sign out. And then when I got your call, because people call me all the time about my mother's house, you know. And so I was like, well, let me just call them back and see if they might be interested. So now you guys are investors, you just buy what as it is. Yeah. And what, flip them, random. Yeah, that's right.

Right. Yeah. Yeah, Mark is kind of slow and low on inventory. That's for sure. I know. Okay. Let me. I hadn't turned my computer on.

You know, I have to go pay my taxes. is. Oh, no fun. I usually wait to the very, very last minute to write that check. Taxes, I know. Yes, yes. Okay. Yeah, it's 12.

Lindsay. Okay. That's 764, right? Yes. Okay. So this is a family house. or family home. And they're going through probate right now.

Yes. Okay. Okay. And the, like I said, the lot next door, it's a vacant lot next door, it would be included. So, you know, potential, I know, potential to either expand the house or build another house. Yeah. So two for the price of one. I know.

That would be great. Okay. There's no repairs needed on the property? So they have put in bathroom. They put in a new floor for the bathroom. It's an old house. Yes. I would say, I would say that potential for it would be to knock out a couple of walls, expand the kitchen of, you know, do your, do your little rehab, whatever. But I know that the house next door, last year when we were talking about putting it on the market, I wouldn't say that house next door went for like $78,000 or something. And I think in the adverse condition, I think that they're probably going to be asking about $60,000,

somewhere between $60,000 and $70,000, but it does include that lot next to $1,000. store. It would include that? Yes. Nice. Okay. Yeah, it will include the lot because they don't want to split it and try and sell it. So I know that the lot

probably would bring about 20 about 25,000 but yeah, they want to just be done with it and sell the lot in the house all together. Oh, okay. Is this

Is the property in the market already? It is not. I have it in the MLS, but it's not active because just as the time that I was getting ready to go live with it, she called me and said that she was going through probate court. So I wanted to wait. And so it's in MLS as a incoming. Okay. And like I said, I had already put my first.

sign on but I have a sign up that says coming soon. Okay. All right. And I don't have, I don't have keys or anything, but if you're interested in it, I can make arrangements to get keys and you can go in and look at it. Okay. That would be great. What we usually do is to, you know, check it out first through Google, Google.

You know, we could do a street view on that and we could check it out. And then, you know, do evaluation through that. What I'm going to do here, I'm getting all the information I'm needing right now. And then I'm going to give all this information to my acquisition manager. And he would be the one checking out the property. He would be going there and check out the property. And he would also be the one calling you if ever he would, you know, set an appointment to check the property. in to check the property.

Okay. That sounds good. Okay. So I'm looking here. Did I give you the right address? Let me see that again. That's one to. Ramsey?

Yes. Wait a minute. I'm looking at. I just got my system up. I think it's 12. Eight. And which company are you with? Properties.

You can check us out on our website. So do you, do you recruit agents to do your diligence and all of that or you're that? Yeah, we do. We do. We do. Yeah. You know what? I could, you know, give all your information to Percy. He's the one handling realtors. Okay. Complete name is Brenda. Is that correct? Yes. And this is your phone number. So if ever he would be calling you. Yes, this is my cell.

Okay. Do you have an email address? Yes. So I could, you know, give all the information. Okay. B. K. B is in boy.

Uh-huh. K is in Kite. All right. At yahoo. And like I said, I'm with, I'm with, um, probably recently, um, I'm going to go to the business a little over two years. So I retired from Fannie Mae. So just got to do the real estate business.

Yeah, from one extreme to the other. More closing on them, taking them away, aureos, the whole nine yards. I know. Yeah, but I like this side. Yeah, real estate is really nice. Yeah. Okay, so I had to go get my glasses so I can see. All right.

Incoming listings. All right. This one is 12 Ramsey Avenue. And it has an MLS number. All right. 937. Four three. All right.

We could check everything here. And then, you know, we're going to give you a call. Okay. That would be great. All right. Sounds good. Yeah. All right.

Thank you very time, Brenda. Have a great day. Uh-huh. You too. Bye-bye. All right. Bye-bye. Now imagine having someone out there taking these types of calls for you.

You know, these 50-50 calls. Like, you don't know if it's going to be a deal or not. And it's probably not. I mean, this person wasn't even the seller. But that would have been 10 minutes of your time. time and based on how much marketing you're doing, you might have 20 more of these types of calls to make throughout the day. Next week, be here and I'm going to share with you how you can get someone like this

pre-trained for less than $10 an hour to sort these calls for you and set you up with just the motivated sellers. You might want to hit the subscribe button for this show if you haven't already to be sure that you don't miss next week. That's it for today. I'll see you next week or catch me tomorrow. Catch me tomorrow on Turnkey Real Estate Investing. I'm Matt Terrio, living the dream.

You've been listening to Epic Real Estate Investing, the world's foremost authority on separating the facts from the BS in real estate investing education. If you enjoyed this show, please take a minute to visit iTunes and share your thoughts. Thanks for listening. We'll see you next time here at Epic Real Estate Investing with Matt Terrio. This podcast is a part of the C-suite radio network. For more top business podcasts, visit C-Suite. www.sweetradio.com