Epic Real Estate Investing - You Set the Rules, So Set Good Ones | 406

Episode Date: June 11, 2018

If you think real estate investing sounds a lot tougher than your current job, you might be in for a surprise on today's episode of The Epic Real Estate Investing Show! Matt shares tips on how to be your own boss, the huge perks of switching over to real estate investing, and the shocking reality of how investing compares to your day job. Learn more about your ad choices. Visit megaphone.fm/adchoices

Hey there, Rockstar. Today's episode brought to you by the professionals over at Lighthouse Advocates where they've been rescuing businesses in the nick of time for more than 20 years. So if you need help with marketing strategy, wealth strategy, tax planning, CFO services, business innovation, bookkeeping, payroll services, project management, just about anything to do with your small business. Lighthouse Advocates team of professionals is your resource to whatever the rough seas of life are throwing at your business. So go to Lighthouse Advocates.com and request a business acceleration session. It's free. You won't be pitched.

You won't be sold. You'll merely be pointed toward the right solution for you. And when you're there, just tell them that Epic sent you for a little extra special attention. Lighthouse Advocates.com. Now, on with today's show. This is Terrio Media. Yo. Yeah, yeah, we got the cash flow.

You didn't know home for us. We got the cash flow. Yeah. What's that? Hello. and welcome to the epic real estate investing show where we meet here each and every week to share tips strategies, advice, and wisdom from some of the greatest minds the business of real estate, the business of business has to offer.

So if you haven't noticed, we are now four days a week, Mondays, Tuesdays, Thursdays, and Fridays. Mondays, it's what you've come to know and love from the Epic Real Estate Investing show, the detailed how-to lessons and interviews as they pertain to you actually going out there getting dirty and sourcing the deals yourself and closing on those deals and keeping all the profits for yourself. You doing it yourself. And then Tuesdays, my tax attorney and I discuss the tax hacks that no one is telling you about, probably not even your own tax attorney, not even your own CPA, not even your own bookkeepers. So you can take this information and you can share that with your professionals that are helping you out with your tax planning, your tax strategy.

or you can just come on over and the people over at taxhacker.com, they'll help you do it for you. They're for hire as well. So whichever work is going to work best for you, that's there for you on Tuesday. We spent a lot of time on Mondays talking about how to make money. Tuesday we talk about how to keep it. And then Wednesdays, we take a break. But not for long.

We've got a very special Wednesday episode coming up. And it's already in the works. We've got a bunch of them in the can. And we're just waiting until that moment to release. And I'm looking forward to sharing that with you. I'm going to be something very different. I think something very different than you've ever heard on any podcast before. So I just want to make sure it's right and make sure that it's executed correctly,

at least the way that I want to see it. So then if it flops, there's no one to blame but myself. And then Thursdays, I interview some of the most influential thought leaders in the world to extract practical business tactics and principles and wisdom and inspiration. And then on Fridays, we finish the week with short thoughts on accelerating your journey to financial freedom, helping you escape the rat race, helping you get your monthly passive income

to exceed your monthly expenses to where you actually have a life of independence, a life of freedom. And then from there, you've got options. You get to go do what you want to do with your life. And if you want to keep your job and still do that, you can do that. If you don't want to do that, you don't have to do that.

All righty. So that's what Fridays are for. So to catch the video versions of these episodes, you can go to Epic, R-E-I-I-I-E-I. You can catch the audio versions here on the podcast. You can catch the video versions at Epicr.org. That's going to take you right to our YouTube channel. And then what else?

Oh, you can catch us on Instagram at Epic Real Estate. We're on Instagram at Epic Real Estate and releasing a bunch of cool things over there to do. All righty. So, so real estate, real estate, real estate, real estate. You know, we, this business can be tough, right? It has its ups and its downs. It's got, you can experience just about every possible emotion. that a human being can experience inside of just one real estate transaction.

You can go all the way from the very bottom and the lows and the world is crumbling in on you, all the way to, you know, in 24 hours it can switch. And all of a sudden you've got a big fact check in your hand. And you're just like, wow, what happened just now? So why do we subject ourselves to that? Right? Why real estate? Well, because you need it.

You have to have it. Right? You do need it. And because if you get this part wrong, the statistics reveal, and I'm not inserting my opinion here. I'm taking, or, yeah, I'm just taking the stats that are available. I'm talking cold, hard facts, just the numbers that if you don't incorporate real estate in some capacity into your financial plan, you are destined to work for 40 to 50 years,

just hoping for the best. And that plan of hope, it's failing 95% of the population. That's per the Department of Health and Human Services. You've probably heard that here once or twice before. You see, 95% of today's 65-year-olds will have to take a significant hit to their standard of living once they are ready to retire. They'll have to downsize. They'll have to change zip codes. They'll have to budget.

They'll have to make do with less. And that's if they actually get to stop working at 65 years old. You know, a recent Wall Street Journal article, it was an article about 401Ks. You can go to Wall Street Journal, by the way, and search 401K, lots of articles there and recent ones, too, about the limitations at best and the failures at worst of that 401K plan. I mean, even the people that created it are like going, oops, we made a mistake here. There's an article on that. I think it's the creators of the 401k that lament their decisions or something like that. You'll find it.

It's pretty easily searchable. And anyway, one particular article stated that the retirement age is increasing. and realistically for most, it's closer to 72 than it is to 62. And that's not because people are so in love with working. It's because they have very little choice, right? Because they follow the advice of the traditional advice to work and work and save and make sacrifices and put your money in these 401Ks and these retirement plans and these tax deferred environments and just save, save, save.

and most people just haven't been able to save enough. Not to mention that that whole premise of that plan was, you know, that was put together, what, 30, 40, 50 years ago, probably closer to 50. And people are living longer. You have to save more. So it's not working. But real estate, if you get this part right,

you don't have to work 40 to 50 years. You can if you want, but you don't have to. you can get the ability to retire much faster. You'll have that option to do that much faster with dedicated and disciplined focus. You know, that could be four to five years. Yeah, like 10 times faster. 40 to 50 years working and saving or four to five years working and streaming, streaming your money, focused on creating streams of income.

So, I mean, for example, Josh, Josh Miller, been working as an engineer for 10 years in corporate America. He gave one year of commitment to real estate investing. He says, I'm just going to give one year. to dive into this and he walked away from his job in less than that year. Like short, like he didn't even reach the full 12 months and walked away from his job. And it wasn't just a job. It was his career.

This is what he was going to do. It's what he went to school for. It's what he invested the last decade in. And for the foreseeable future, that's where he thought he was going to be. That was the plan. And he's walked away from his career with absolutely no hit to his standard of living. And he's very close to replacing his previous job salary entirely with passive income, 100% passive income. Now, I'm not saying it's easier work. It's not easier work. It's faster.

It's much faster. And it's not get rich fast. It's get rich faster. But it's definitely not easier. And it might even be simpler, but not easier. It still takes significant effort and focus. But what I will say, it's likely no more difficult than the work you're doing all day long right now for someone else. I mean, it makes me think of one of the members in the RIA. This was just a recent conversation that we had had. He had, you know, he had limited resources when he started, I don't know, six, eight months ago. But nonetheless, he jumped all in. He's a believer, and he wanted to go after it.

And he had just enough resources to get in. But he was definitely working against the clock for the limited resources that he had available to him. Like he knew there was going to be a point where they ran out and then he was going to have to make a new decision. But he wanted to go for it. And I commend him for that. And I commend him for that. And I commend anybody that goes for it like that. but it doesn't always work out for everybody in the time frame that they want, right?

It's just like it's going to happen, but is it going to happen in the time that you need it to happen? So he needed to make it happen fast. So it hasn't happened for him yet. And he hasn't given up. But he is like looking now, I've got to go get a job. I've got to keep a roof over my head. I've got to keep the lights on. I've got to put food in my stomach.

And just sometimes that's what you have to do to support the dream. And I did that multiple times. when I was building my record label. I mean, I washed dishes. I cleaned golf carts. I changed light bulbs at Saks Fifth Avenue. Yes, they have a full-time person there that goes around and changes light bulbs

because that's how often they go out. You have to change 10 to 15 light bulbs a day, but it's not just screwing in and out. It's like you've got to get these massive ladders and these massive contraptions to go in and do that. So I did that. And then I cooked Chinese food. I stuffed envelopes for temporary services

and temporary agencies. and I sold sound and lighting equipment. I tried a few different multi-level marketing campaigns. I almost got into selling insurance, and I thought it was going to sell cars. I mean, I was looking at all kinds of things. I mean, I've got a lot of range in my job history as I struggled to make ends meet

while I pursued my dream, that dream in the music business. And when I think back to those jobs, I eventually made it, too, by the way, and I'd probably still be doing that if people didn't change the way that they consumed the music, if they didn't stop buying CDs, in exchange for consuming digital downloads.

Otherwise, I'd still be there. And, you know, anyway, when I think back to those jobs, I remember thinking over and over and over of while I was at those jobs, how pissed off I was stuck there during the day when I could be doing so many of these same job tasks for myself. But instead, I'm doing them for someone else. And that's the particular conversation I had with this, client that if you have to go get a job to keep the lights on by all means go do it uh if you can

stick it out a little bit longer consider this before you go get that job just kind of check in with yourself that you are indeed working at least eight hours a day performing your real estate activities before giving it up to go perform similar tasks eight hours a day for someone else you got that check in check in with yourself i mean since you're your own boss meaning You are the boss of you. And you're, so that means you're also, you're the boss and you're also the employee of you. You know, and kind of separate those two roles for a second. Step into your boss shoes and look at yourself in your employee shoes.

Are you happy with your employee's performance? Is your employee working eight hours a day for you? Do you deserve a promotion as an employee? Or do you deserve to be fired? you know, are you about to go get a job to work harder for someone else than you are for yourself? I mean, it's really easy to slack off when you report to yourself. Not so easy when you report to someone else. So if you find yourself in a similar situation, be the boss version of yourself for a moment

and hold the employee version of yourself to higher standards. Hold the employee version to yourself to the same standards that your boss would hold you to if you had to go get a job. I mean, sit down with the employee version of yourself and let them know, hey, it's my way or the highway. You're the boss, right? You set the rules. If you don't hold the employee version accountable to your rules, you're going to be

out of business. And it's not because the business didn't work. It's because the employee version of yourself didn't. You know, Nick over at Lighthouse Advocates, he was telling them, me about a conversation. He's had a blast with all of you, by the way, that have taken this up on our offer that we made. I think it was last week or two weeks ago. But he's talked to a lot of podcast listeners, and he gets a real thrill out of it. And he shared with me one particular conversation he had, and had it, the listener had a $60,000 a year job in like a second-tier

customer service position. And she was afraid to let go of that position for she had a lot of comfort in the guaranteed paycheck. But at the same time, she feels that there weren't many options for her within her company to grow and start making the type of money that she really wants to make. So she's been looking into real estate, but she's a little scared to make that leap, leaving her guaranteed paycheck. And Nick had started asking her questions about, you know, what she was doing on a daily basis? And so just kind of describe to me, what does your position look like? What does your day-to-day job look like? Like, from the time you check in to the time you check out, what does that look like?

And she said that she handles the phones. She makes outbound calls for the company, and she answers it when it rings. She diagnoses the customer's issues in her department. She proposes solutions. She documents the phone call in the company's database. She follows up at a later date to make sure everything with the customer is satisfactory. And Nick kind of just stopped her right there and asked,

do you realize that you already know how to do everything in real estate? state that you need to know to do to turn that $60,000 a year job into a $600,000 a year job. You're already doing the exact same tasks for your boss in their customer service department that you could be doing for yourself. So, you know, how is that boss able to guarantee you a paycheck doing those tasks? But you're not able to guarantee yourself a paycheck by doing those same tasks for yourself. I mean, look at what you do on a daily basis for your boss or the company that you work for. You probably have time on the phone every day.

You've got ingoing calls. You've got outgoing calls. You probably deal with challenges from customers. You deal with challenges from coworkers. You do that every day. You probably work on solving those challenges with the customers and the coworkers every day. You probably keep records. You do some data entry.

You make presentations. You turn in reports. You do research. You follow up with customers and coworkers. I mean, the list is endless. you're probably doing all of the same or very similar activities at your day job as you would be doing for yourself. So why not do it for yourself? Well, there's only two reasons.

There's only two reasons that you wouldn't. First, you don't believe that real estate is actually going to work for you, of which is silly, or you don't believe that you are going to work for you, of which is, when you think about it, that's even sillier. because you're already working every day for someone else. So you know you'll work because you work for someone else. Now you've got to work for yourself. You see, your boss believes that if you perform the right activities and if you perform those activities consistently with persistence,

your activities will generate revenue for his or her company, which will enable him or her to pay you your paycheck, your guaranteed paycheck. There's no difference other than the context of which those activities you perform. I mean, from a difficulty standpoint, there's no difference. I know you can do it because you already are doing it

or you've already done it. Just perform those same activities in the context of real estate. And that $60,000 a year job can easily turn into a $600,000 a year job. And all you have to do is report to work for yourself eight to nine hours a day, five days a week, just like you're doing for your boss.

And that $60,000 a year job can easily turn into that $600,000 a year job. Just the activities inside of real estate and working for yourself pays a lot more than doing those same activities for someone else. And if you'd like a list of what those activities actually look like, you can go to daily SuccessReport.com. It's a little scorecard that we use inside of the Epic Pro Academy has a list of all the money-making activities and you just hold yourself accountable by using that daily success report daily. So daily success report.com, you grab a copy.

And what has inspired this episode today? It's some of the feedback received from the pilot program that we covered over the last several weeks. And the fact that this opportunity showed up at everybody's front door, this pilot program showed up at everybody's front door dressed in overalls and now looks a lot like work. Well, of course it's work. A job is work. Life is work. The question is, how long do you want to work?

because some committed effort of this eight to nine hours a day, five days a week for yourself, you know, you can accomplish in three to four years what the rest of the population is failing to do in 30 to 40 years. It's just changing the activities, right? It's changing the direction of those activities, the intent of those activities, and the context of those activities. Right? So, you know, I'm not suggesting that you just leave your job and go do this.

Don't do that. Well, if you're Jack and Josh, then you would. They were at the last intensive, and four months later, they quit their day job based on this principle right here. The day they got home from the last intensive and then two intensives ago, essentially in January, and then they were there on stage at the Indianapolis intensive, sharing we four times are business. We quit our jobs the next day and we have four times at our business since. So I'm not, but anyway, I'm not suggesting you do that. They wanted to.

That was what for them. Maybe it is a good fit for you. Maybe you want to do that. But what I do recommend is to start off slow and embrace this and put hold the whole context of your real estate endeavor, your whole real estate pursuits in the I'm already doing these activities for someone else. All I need to do is work a little bit overtime after work to start doing them for myself. Right. So to start slowly, you're going to start slowly in your spare time. And once you get a deal or two under your belt, you can move to part time.

and then once you're doing deals consistently, you can move to full time. Then it's going to be a lot more comfortable to take that full step. And to get to the next level then, to start experiencing the real estate money or the real money that real estate is capable of generating, you're going to have to put in some overtime. And then you're going to start seeing how that overtime,

building your income portfolio, eventually is going to turn into more time for yourself, more free time, ultimately leading to free time, lots of free time. Freedom from the rat race. Becoming financially independent creates free time. So that's the progression. So starting next week, what I'm going to do is I'm going to start walking you through the how, right? We talked about the what today or kind of what it looks like. And so I'm going to start walking you through all six levels that you need to travel through the six levels of real estate investing. I'm going to walk you through those levels and I'll help you identify

where you are right now among these six levels. So you have clarity about where you're beginning. and then I'm going to go through what there is to do specifically on each level to get you to your next level. And then to each subsequent level until you're standing on top of Freedom Mountain that real estate promises. All righty? So we're going to break it down as simply as we can and just to go from step to step to step so you can make this transition. So you stop doing all these funky activities for your boss. So you can get that quote unquote guaranteed paycheck. to where you start doing these funky activities for yourself

so you can get that guaranteed paycheck with an extra zero at the end. Sound good? If you'd like to make that journey, keep listening. If you'd like to go fast, go to R-E-I-A's.com, and then we'll have a conversation about it and help you go fast. All righty. So God bless, to your success. I'm Matt Terrio.

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.