Epic Real Estate Investing - Your Success Comes with a Guarantee | Episode 130

Episode Date: November 6, 2014

Today’s episode begins with an overview of how to you find deeply discounted properties that you can profit from.  In the most straightforward way possible, Matt shares not only how to find deeply discounted properties, but an easy method for how to get those deep discounts even deeper!    Then Matt does something few others can: he guarantees your success!  He walks you through this guarantee, gains your consent and commitment, primes your mind for what’s to come, and finally lays the foundation for the action steps that follow. ------- 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 or text “FreeCourse” to 55678. What interests you most? E ducation P roperties I ncome C oaching   Learn more about your ad choices. Visit megaphone.fm/adchoices

Broadcasting from Terrio Studios in Glendale, California. It's time for Epic Real Estate Investing with Matt Terrio. Yeah. Hello. Hello, and welcome. Welcome to the Epic Real Estate Investing podcast, the show where I show people how to escape the rat race using real estate. I did it myself by changing one thing, just one time, and that one thing that I changed

was my focus. You see, I shift the time. my focus from making piles of cash to making streams of cash. You know, once you change your focus, all there is to do is to follow up your focus with Coralit Action and you, too, can accomplish in four years or even less what 95% of our population is unable to do in 40 years. I did it. Not because I'm special.

No, not by any means. It's not to brag or anything like that. It's just to demonstrate that anyone can do it. And I did it because someone. just showed me how. I did what they said. I followed the instructions and boom, voila, it happened. So if you can follow instructions and you can move at the speed of instruction, that's the fastest way to do it. If you can do all that, you can do it too. Anyone can do it. But not everyone will. So the question here is, will you? You know, I'll open the door, but you have to walk through it.

Got it? And it all begins with a simple and free real estate investing course that I created just for you. And you can access that free course at free real estate investing course.com. It's all new, all new, just updated the entire course about 30 days ago, maybe about 45 days ago now. And it's still free, but it won't be for long. And I've been saying that it'll no longer be free, effective January 1st as I'm going to be absorbing that free course inside of the Epic Pro Academy. I'm going to have something new for you. But I'm going to take that free course and it's going to be exclusively for academy members.

And that was going to be effective January 1st. But I have to change that. I'm putting some of this, the new thing together for you. And in my IT department, they have advised me that they need some more additional downtime to prepare for that. So come December 1st, the free course will no longer be free. So you lose in 30 days. Sorry about that. It will be available only to Epic Prol Academy members after December 1st.

But you can still get it for free right now by going to free real estate investing course.com. Free real estate investing course.com. Get it before it's too late. All righty. There's enough there to start making money in real estate. You know, I've had several people on the show that have done just that with nothing else. just what's contained in that course. All righty.

So here we are on day two of our getting back to the basic series. And if you're just finding us, make sure you download the last few episodes starting Monday. Today is episode 30. So it'll be 29, 28, 27, starting with episode number 27. And I start there and catch up. All right. We'll be here waiting for you. Also, mark your calendars for December 3rd.

Grub and Grow Rich is going to San Diego, San Diego, California. All details can be found at grub and grow rich.com. All right, here we are. Day four of our getting back to basics week. And, you know, I have to admit, I am really blown away. I guess that's the, for lack of a better phrase. I would like to come up with something a little more clever than that. But I am.

I'm blown away by the response. I wasn't expecting, you know, really a whole lot of excitement over getting back to the basics. But so many of you are so grateful and relieved, I might say. it sounds like in interpreting your comments is that you're relieved that we're starting from zero, starting from scratch. You know, many comments that I've heard and seen that Monday's episode, episode 127, was one of their favorites of all time. So what do I know?

I thought I was running the risk of losing y'all's attention by getting back to the basics in the manner that I have this week. But nope, not the case. I've got faith. You guys are restoring my faith in humanity, my faith in my faith. in learning, you know, comments are way up, downloads are way up. So we're just going to keep on going. All right, we'll just keep on going.

After yesterday's episode, hopefully you completed the exercise in getting to your why. Specifically, how by obtaining your why, how that will make you feel. Because as we discussed, it's not the money that you really want. It's not the real estate that you really want. It's not even the financial freedom that you want. it's the feeling that you think the money, the real estate, and the financial freedom will give you. That's what you really want. You want the feeling.

And it's that feeling that will keep you going when you discover that this business isn't all lollipops and rainbows. I mean, it can be, and it can be frequently. It's a great business. But it ain't always. And it's the feeling you're after, that feeling that will pull you through those tougher times, those frustrating times. And you will experience those. So just expect them. So stay in touch with that feeling and those frustrating times become a whole lot easier.

There's another feeling. Conversely, another feeling you want to stay in touch with as focused on how you feel will that focus of how you'll feel once you achieve your financial freedom. That's your motivation, right? Okay. Well, for me, and everyone's different, and I'm sure there's some of you out there that can identify with me and this is going to work better for. but for me a stronger motivation is by being very clear on how I will feel if I don't achieve

financial freedom if I somehow lose my financial freedom I mean the thought the very thought of having to go back and bag groceries at some point in my life that that's terrifying that's a very terrifying a future to live into and that terrifying feeling keeps me going it keeps me going every single day. I mean, it seems so far away like bagging groceries wouldn't even be in the realm of possibility based on what I've accomplished thus far and what I'm working on today and what I see for my immediate future, my long-term future. I mean, it doesn't even seem like it's possible.

But I remember, I remember clearly bagging groceries wasn't even on my radar up until the point that I was actually doing it. So I know how quickly and how unexpectedly life can. change. So stay in touch with both of those feelings. How will you feel once you achieve your financial freedom and how will you feel if you don't achieve your financial freedom? You know, the not the or the inability to experience your financial freedom, that can be very, very motivating. Some people are motivated by chasing pleasure and some are motivated by running away from pain. And I'm rather adverse to pain. So that keeps me really going. Neither is right. Neither is

wrong doesn't really make you a good or bad person either way but just understand that and identify which feeling is stronger for you and use it okay your life depends on it your life depends on it there are people depending on you to succeed there are other lives that depend on it as well there are people watching people you don't even know that are watching there are people out there that will be inspired by your achievements. And when I think of this, I often remember the passage by Marianne Williamson. It's very popular. It's been uttered in lots of movies and a lot of famous people have referenced it.

And it's often erroneously attributed to the inaugural address of Nelson Mandela. But in fact, they are the words of Marianne Williamson. And it goes like this. I'm going to read a little bit. Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our light, not our darkness, that frightens us. We ask ourselves, who am I to be brilliant, gorgeous, talented, and fabulous?

Actually, who are you not to be? You are a child of God. Your playing small does not serve the world. There is nothing enlightened about shrinking so that other people will not feel insecure around you. We are all meant to shine, as children do. We were born to make manifest the glory of God that is within us. It is not just in some of us. It is in everyone, and as we let our own light shine,

we unconsciously give others permission to do the same. As we are liberated from our own fear, our presence automatically liberates others. And, you know, there's a lot in there that really speaks to me personally. and I'd have to believe that if you're a human being and you have a pulse, there's some stuff in there that you can relate to as well. And for a long time in my life, I played small. I didn't play, let me say I should say, I did play big by many people's standards. But I didn't play as big as I could have.

I didn't want to win too big. I wanted to win. I wanted to do well for myself and I wanted to be able to help those around me. but I didn't want to win too big. I didn't want to be great. As I had friends and family around me that I didn't want them to feel small. I've actually thought about that before. And, you know, after years of soul searching and introspection, I discovered this about myself.

I was, you know, it was buried within myself conscious, but, you know, it was just a real wake-up call once I discovered how I had been sabotaging myself. how I had been playing a life of good enough. This is good enough. It'll do. I'm fine. I'm comfortable. Everything's good. I've been playing this life of good enough for a very long time when I should have been playing

for greatness. I mean, I still have to check in every once in a while because it's kind of, if I let that go unchecked, it will creep back in. So I got to check in every once in a while to make sure that the game is still greatness. That's got to be my game. That's got to be your game. And I've since given myself permission to succeed. and succeed in a really great way.

Permission because I want success, first of all. Another reason is I'm capable of a success, and if I work for it, I deserve success. I want to, for all of those reasons. But also, I'm aware of how far reaching my success is. I mean, it's so much bigger than me. It reverberates throughout society. You know, as that passage reads that Marianne Williamson wrote,

as we let our own light shine, we unconsciously give others permission to do the same. As we are liberated from our own fear, our presence automatically liberates others. What a gift you can give to someone else. Your success is a gift to someone else. It gives them permission to succeed as well. It liberates them from their own fears as you work on liberating yourself from yours.

Got that? It's just, that's just so powerful. So it's my responsibility to succeed. And it's yours too. All righty? So let's play big. All right. So before we get into that how to and we will get into it,

I want to lay out the basic essence of a real estate transaction. And, you know, the transaction process that I'm about to teach you, part of this whole epic approach thing I've been talking about. You know, this week's Back to Basics theme is for everybody, new and old investors alike, novice and experienced investors alike. And if you've yet to do a deal yet or if you're not doing as many deals as you would like to, today's episode is just for. you. I'm going to cover the players and the moving parts that you'll need to know in order to execute the two strategies that I'll be showing you later. Okay. We're just going to talk about the necessities, the basics, no frills, no frivolous random variables. We're just going to talk about what you need to know to execute a real estate transaction, specifically in the

approach of the epic approach. Okay? The very one that has built my entire business. It built my wholesaling business. It built my flipping business. It built the short sale business. It built my buy and hold business. It's built my cash flow savvy business. It's built everything. It's proven. And it's done it for hundreds and hundreds of Epic Pro Academy members as well. All right. So that's what we're going to start with just the basics. And so we'll start from square one. We're going to start with you. Hi. How are you? Good. You see, you begin the process. You're the one who begins the process as the buyer, slash investor. You are a buyer. You are looking for a property to buy. And you are also an investor.

You are specifically looking for a property to buy that will eventually result in a profit for you. That's what an investor is. They profit. Okay. So don't be afraid of profit. If you're afraid of profit, maybe you should go get involved in a nonprofit organization or something. But if you're going to call yourself an investor, that's your job is to profit. All right? The buying process now is where investors make their money. You got that? The buying process.

They make it right at the beginning. And you may have heard that expression before. You make your money when you buy real estate, when you buy it. And the part that you rarely hear is you get paid when you sell it. But you make your money when you buy it. You make your money right up front. And then you get paid when you sell it. sell it. Got it? So to prevent you from getting lost in the semantics of the expression, there's just

one basic principle you need to know. Okay? I'm going to keep this really simple. I can sum it up in two words. Buy low. Got it? Buy low. That's your job. The lower you buy, the more money you make. Keep it simple. Buy low. That's the initial objective. So how low is low? How low are you supposed to buy? This is also very simple. Don't overcomplicate this either. Buy lower than what you expect to sell it for. Got it? Buy lower than what you expect to sell for.

Pretty basic. You see how even right here, right at this point, move over, we've been talking about this for a few minutes. Even right here at this point, we can complicate this business. Meaning, you know, people get stopped, dead in their tracks, merely because they don't know what to offer for a property. They get stuck right there because they don't even know what to offer. They don't know what to buy it for.

So just keep it simple. Offer a price low enough to generate the minimum profit that you want after you sell it. Got it? Offer a price low enough to generate the minimum profit that you want after you sell it. It's so basic. I mean, it's almost painful. So buy lower than what you expect to sell for. Simple.

Don't complicate it more than that. Now, the difference, okay, the difference between what you buy it for, less any debt on the property, and what you can sell it for is referred to as your equity. Okay? When you do actually sell the property, that equity manifests itself into profit, into actual currency, into money. And the profit is for you to keep. that's how you make money as an investor. You buy low, you sell high.

That's your job. It's the very definition of an investor. Simple, right? Buy low, sell high. Cool. Now that we're clear on that, let's move on. The real work begins now when you start looking for a property

that you can buy for a price that's lower than what someone else is willing to pay for it. That's the work. Okay? And the question that always comes up, for new investors, and sometimes even season investors, people that are getting frustrated and aren't happy with their results, is why would anyone sell their property to me at a low price

if they can sell it to someone else at a higher price? If they can sell it on the open market at a higher price. Why would anyone sell it to me at a low price? I mean, if it's so easy, why don't everyone do on it? Well, here's the answer. Okay, here's the truth. Not just anyone will sell you their property at a discount. Okay, so when you ask, why would anyone sell their property to me at a low price if they can sell it on the open market at a higher price?

Well, the answer is not just anyone will sell you their property at a discount. In fact, most properties will, or excuse me, most property owners will not. But you're not looking for most property owners. Okay? You are looking for property owners who are experiencing some sort of a life challenge or some sort of adversity that selling their property will solve or alleviate. By selling their property, it's going to solve their life challenge. It's going to alleviate that adversity or that stress or that pressure that they're experiencing. So you're looking for property owners who are experiencing some sort of challenge in life, some sort of problem.

You know, once you come to grips with the fact that most property owners will not sell you their property to discount, you won't get hung up or stuck and frustrated every time you speak to a property owner that has a property to sell. Most property owners will not sell you their property at a discount, but you are not looking for most property owners. You are looking for property owners who are experiencing some sort of life challenge, some sort of problems, some sort of adversity or stress that by which if they were, to sell their property, that problem they're experiencing will be solved. It'll disappear or it'll be significantly alleviated. So, in short, you're looking for property owners with problems. Problems like, like what? Like job loss.

Selling a property, that might solve the issue that there's no income coming in at the moment. Problems like job relocation. Can't live in Atlanta if you now have been relocated to Los Angeles, right? You got to sell the house. Maybe it got to be there on Monday. Today's Friday. You've got to be on Monday.

You've got to get rid of this property. Job relocation. Divorce. Late mortgage payments. Delinquent property taxes. Retirement. A distressed property. Or maybe a group of distressed properties.

An investor that's like had it. They're thrown in the towel, right? Or an illness or a death. Or even inherits. A lot of people, an inheritance, people that have inherited a property is a great place to find discount a property. They don't want to manage this property. It's free money to them.

Let's just get rid of it and cash it in. I don't care how much. I need the money. Inherence is another great place to look for property. Or any number of things that life may throw out a person that can cause some sort of financial distress, some sort of inconvenience. and this part is pretty simple too, right? Look for people with problems.

Now, I said previously that your job as an investor is to buy low and sell high, and that is true. Don't ever forget that. But I want you to think of your job now in a more empowering light, okay? Something with a little bit more heart, something that you can get behind emotionally, something where you might be able to get that feeling that you're after. I want you to think of yourself as a problem solver. That's who you are. You are a problem solver.

You are still going to buy low. You are still going to sell high. But your job is to solve problems. You are a problem solver. That's how the most successful real estate investors think of themselves. Okay? It's your job to help property owners solve their life problems. That's your job is to help these property owners with all of these problems, all these challenges, all these stresses.

it's your job to solve their problems and there are three reasons for this. One, people with means should help people with their life problems. Okay? It's noble. It feels good. It's the right thing to do.

It's how people should treat each other. Number one. Number two, life problems, they happen every single day. Someone is losing their job every day. Someone unfortunately is dying every day. Someone is inheriting a property every single day. Someone is being reload.

located every single day. Someone is filing bankruptcy every single day. Someone is filing for divorce every single day. Every single day. There will never be a shortage of opportunity to help people. Okay. That's number two. Life problems happen every day. Number three, the third reason, property owners with problems will exchange their equity for peace of mind. Uh-huh. Property owners with problems will exchange their equity. That's profit, in other words, for you. They'll exchange their equity for peace of mind all day, every day, and twice on Sunday.

I repeat, property owners with problems will exchange their equity for peace of mind. They will give you the equity in their property in exchange for you solving their problems. Let me break it down even simpler. as simply as I possibly can. Because that's what we're doing here, right? We're uncomplicating the business. Don't overthink it. It's very simple.

We're keeping it simple and it goes like this. People experience problems every day. You solve problems. People will give you equity to solve their problems. Boom. Simple. People experience problems every day. You solve people's problems

and people will give you equity to solve their problems. That means Here's what this really means. There will never be a shortage of opportunity for you to acquire equity, regardless of market conditions. Such a big myth about real estate. How's the market doing? Should I get in now or should I get in later? Is it good, is it bad?

There's no such thing as good markets or bad markets. There are only up markets and down markets, and you can profit from both. Relatively speaking, there is always a low price at which to buy and a high price at which to sell. Always. Don't let the market conditions or other investors or the media influence your decision of whether to invest or not. Whether to invest or not is, do you need money or not? That's the answer. To answer to one question answers the other.

As long as you can solve the problems of property owners, they will always give you equity in exchange. trade equity for peace of mind so there's the foundation even of all of your negotiations no tricks no manipulation no techniques no strategy none of that stuff is needed as long as your mindset is one of trading equity for peace of mind you know everything you need to know equity for peace of mind that opportunity is available in every market i don't care where you live as long as other people live there, it's available in your market too. Doesn't matter the economics. It doesn't matter the population.

It doesn't matter the rental trends, the unemployment rate, the current government that's in charge, the interest rates, none of that matters when you've got the right mindset of exchanging equity for peace of mind. That opportunity is available in every market. Now, the strategy of how you cash in that equity, that might differ with the fluctuations of the market, but property owners will. always give up equity to the person, you, the investor who can make their problems and stresses go away. Embrace the concept of exchanging equity for peace of mind and you and your family will never go without.

Got it? All right. So let's get back to how this works. As the real estate investor, your mission is to find property owners with problems. From this point forward, I will refer to these property owners with problems as, do you know what they're referred to? Do you know what we call them? We call them motivated sellers, right? You've likely heard the term motivated sellers before. Yes? Well, that's what that means. Their motivation comes from their problems.

That's what has them being motivated. All right? So that's what we're going to call them from this point forward. Motivated sellers. So you will connect with motivated sellers in one of two ways. You will either initiate the contact or they will. That's how you're going to connect with them. And I'll go over the specifics of how to do this step by step later.

But that's how to just understand that either you're going to contact them or they're going to contact you. All right, that's how you're going to connect. So once you've found and made contact with the motivated seller, you'll then have a conversation to determine whether or not a fair exchange of equity for peace of mind can be made. If not, you'll part ways and you'll make contact with the next motivated seller to see if you can solve their problem. Simple, right? nothing more, nothing less. If you and a seller can't agree on a fair exchange of equity for peace of mind,

then part ways and make contact with the next motivated seller to see if you can solve their problem. Simple. By the way, most of the conversations that you have with motivated sellers will not result in a deal. And that's perfectly okay. You simply move on to the next motivated seller and to the next and to the next and to the next. and eventually you will meet a seller with enough motivation where a deal can happen. Keep this in mind because it's key to your mental state and your ability to persevere. They're out there.

They're out there in abundance. And you have to know that. People are experiencing problems every single day. You know that, right? And there are people that own property that are experiencing problems every day. You know that. That's key. It's key to your mental state, to your focus.

and your ability to persevere. Know this. Here it is summed up. The foundation of every real deal lies within the seller's motivation to sell. You got it? The foundation of every real deal lies within the seller's motivation to sell.

That's how you get your discount through their motivation. So if you couldn't make a deal, the seller simply didn't have enough motivation for you. Simple. Don't worry, though. You will find someone. You will find many of them.

They are out there in abundance. There's no shortage of people with problems and a ton of them own property. You will find them abundantly available and I will show you from where to find them. Okay? So when you do find that motivated seller, you will come to an agreement on price and terms.

And you will put the price and terms in writing on what's called. a purchase agreement. Okay, that can be one page, it can be 15 pages. There's all different shapes, forms, and sizes of them. But you'll put the price and terms on a purchase agreement. And the details of that agreement will include your name, you or the buyer, the seller's name, who you're buying the property from, the purchase price, and the terms of the purchase.

Okay, so that's very simple. You can put this on a bar napkin if you really wanted to. your name, the seller's name, the purchase price, and the terms of the purchase. So don't let this part overwhelm you. It's really that simple. Remember, today's episode, it's just an overview of the basics of real estate investing. I'll be walking you through each part step by step in detail. I will hold your hand through the entire process, okay?

I'm just giving you an overview, a big giant aerial view of how this works. Now, once you and the seller have signed the contract, you will take the contract. you will take that contract to a third-party intermediary. And depending on what state you live in, that intermediary could be, I don't know, it could be an escrow company. That's what we use out here in Los Angeles. You hear me say that all the time.

Or a title company, or it can be an actual attorney, a closing attorney, a real estate attorney, that does closings. And they all perform that essentially the same duty. And their duty is to make sure that the transaction is conducted fairly, transparently, and legally.

Okay? So basically it's a closing agent. And depending on where you live, it'll be referred to as an escrow company, a title company, or a closing attorney. All right. Now, I like to call this period, this escrow period, the problem solving period. And the problem here to which I'm referring is not necessarily the seller's problem. It could be, but that's not really what I'm referring to here. More to what I'm referring is the property's problems, if there are any.

this problem-solving period, which is formally, like I just kind of mentioned it, it's called the escrow period formally. And it can take as little time as a few days or it could be up to six months or more. The escrow period, it's going to vary from deal to deal. And it's agreed to up front between the buyer and the seller. You agree to that up front. Some sellers might need six months before they're actually going to move out of their house, but you want to get under contract now, so you just ask for a long escrow period.

Or if someone needs, you've met them on a Friday and they need to be out on by next Tuesday, hey, there's a three or four day escrow period. You're going to have to act fast. So that's going to vary from deal to deal. And the length of that escrow period will be noted in the purchase agreement as a part of the terms. Now, when you and the seller signed the purchase agreement, something very magical happened. And this is a part that a lot of people don't get. When you, two, signed the purchase agreement, what that did was transfer certain rights

from the seller to you, the buyer. Okay? And these rights are called equitable rights. And one of your equitable rights is the right to inspect the property. Your right to inspect every aspect of the property. You get to inspect the foundation, the physical structure, the legal history, the neighborhood, the school system, you name it. You have the right to inspect every aspect of the property that could directly or indirectly affect the property's value. That's your right.

Again, I'll show you exactly how to do this later in the course. Just know that once you and the seller have entered the purchase agreement, you have the right to inspect the property for a defined period. And that defined period will be part of the terms in the purchase. It'll be listed in the contract. And this period, we call the inspections and the investigation you do with the property, we call this, we call it due diligence. And you'll hear that term a lot in this business. due diligence. I mean, it sounds terribly official, right?

It sounds very legal. But don't let us scare you. It's just a fancy legal phrase for inspection or investigation. So once your inspection period is complete, you now have two options. One, you can cancel the contract and walk away if you don't like what you found. Or two, you can follow through and complete the transaction. Okay? I guess there's a third. There's a third option. You can renegotiate the contract based on what you found as well. But let's just keep it very simple with these two. If you choose option two, you can follow through and complete the transaction, then it's time to buy the property. You just move through it and operate per the terms of the agreement. You just buy it. Now, obviously, I can imagine that the next question here that probably just came up for you is, well, how can I buy this property if I don't have the money to do it? If I had the money to do it, Matt,

I would have done it already. I mean, if that's what you're thinking, it's okay. Relax. This is what I want you to understand. Up to this point, to this point in this whole process, as we're taking this giant aerial view of the whole process and the procedure, have you needed any money to buy this property? Have you needed any money yet? No, you haven't. Maybe some marketing costs or something like that, and we'll get to that. But you haven't needed any real money. You haven't needed thousands of dollars or anything like that. You haven't needed anything like that. Up to this point, just about every real estate transaction looks the same. You found the deal, you put it under a contract, and you completed your due diligence. Those are three steps right there. You found the

deal, you put it under a contract, and you completed your due diligence. You haven't needed any money yet. So don't worry about the money yet. Don't let the worry of money stop you from getting this far. Travel as far as you can see. Remember? Travel as far as you can see. When you get there, you will see further. So, you found the deal. You put it under contract and you completed your due diligence. Now, this stage is where your exit strategy is going to come into play. Now, remember those equitable rights you received when you entered the contract with the seller. That first one, the one we already discussed, was the right to inspect the property. Well, another one of those rights is the right to market the property in the interest of finding

a second buyer, a buyer other than you. Another one of your equitable rights is the right to market the property. You see, as soon as you get a signed purchase agreement from the seller, you will immediately start looking for someone else to buy the property immediately. So the no money required statement that I use to describe this strategy frequently. It's not entirely true. You will almost always need money to buy a property. But it never has to be your money.

That's what you need to detach yourself from, that idea that it has to be your money. See, with this strategy, when you find a buyer for the property, you're going to use their money to buy it. You're going to use the new buyer's money to buy the property. And then, okay, let me explain it. It'll look like something like this. Let's say the price on the purchase agreement will just use nice round numbers is $100,000.

Okay, nice flat fee of $100,000. $100 is what you have agreed to pay the seller for the property. But while you were conducting your due diligence, while you were marketing the property, you found another buyer, a buyer besides yourself who's willing to pay more for the property than what you have under contract for.

The sets say they're willing to pay $110,000 for the property you have under contract for $100,000. That's a $10,000 difference. You got it? You would then, once you found that person,

you would introduce that buyer to your third party intermediary, your closing agent, and use their money, use their 110, thousand dollars to pay the seller and you get to keep what's left over ten thousand dollars you use your new buyer's money of a hundred ten thousand dollars take one hundred of that give that to the seller and you get to keep what's left over

which is ten thousand dollars that right there that's a typical wholesale deal now again this is just an overview of the basics I will be showing you exactly how to do this very very soon what's most important now is that you have a strong comprehension of the moving parts, the players involved and the ultimate goal of the whole thing in a very simplified form. And it really is that simple. If you complicate it too much more than that, you know, the business gets, you know, more difficult, a little more frustrating, less efficient, and possibly less profitable. So you've got a strong comprehension now of the moving parts, the players involved, and the ultimate goal. I want you to understand how you are going to get paid

Okay, I want you to know how it's going to end up. I want you understand that part. You made your money when you bought the property, right? When you put it under contract, you put that property under contract for $100,000. That's where you made your money because there was a buyer out there that was willing to pay $110 for it, right? So that's when you made your money is when you put it under contract. But you got paid when you actually sold it when the other buyer actually brought their $110,000 to the table. Simple, right?

Okay. I mean, it's so simple. And if you keep it simple, I can guarantee your success. If you keep it simple, I can guarantee your success. Yes, I said it. I can guarantee it. How does that sound? I mean, if you knew your success in real estate was guaranteed, when would you get started? If you knew beyond a shadow of a doubt that your success right now in real estate was guaranteed, was guaranteed. When would you get started? If you knew beyond a shadow of a doubt, that your success right now in real estate was guaranteed. When would you get started? When would you decide to take action? When would you take your first action? That's a question only you can answer. But your success is guaranteed. You know, remember a day or so ago, I said,

if you're going to fail in this business, it's going to be for one of two reasons. If you're going to fail, it's going to be for one of two reasons. you're going to fail, it's going to be for just one of two reasons. Maybe both, but only these two. Either one, you will lose your faith in real estate, or maybe you never had it to begin with, or two, you will lose your faith in yourself. Or maybe you never had that to begin with either.

Right? You will lose your faith in real estate is the first reason, and if that doesn't get you, you'll lose your faith in yourself. and if you can keep your faith in real estate and you can keep faith in yourself if you believe in real estate if you believe in yourself there's nothing that's going to stop you so remember when i talked about number one we covered the uh the first reason you might fail in great depth we've gone into great detail this week as to why real estate and why real estate works and why real estate is your only chance why real estate is the final frontier where the average person has a legitimate shot at achieving

financial freedom. I mean, if you don't believe that, okay, we've got to stop right now. Go back to the beginning of the series and start over. Start again with episode 127 and meet me right back here. If your faith in real estate is wavering, we've got to fix that. No need in going any further. So stop right now and go back and restart with episode 127. All right.

Now, if your faith in real estate is solid, let's keep going. So the second reason you will fail, if you fail, will be because you have no faith in yourself. You don't believe in yourself. Well, we're going to work on that right now. Okay, we're going to go to work on that. I don't even know you. Okay? Well, I likely don't.

But for demonstration purposes, I don't even know you. and I have faith in you. I believe in you. In fact, I have faith in your success. I have faith in your success because I know how to guarantee your success. Yep, I can guarantee it. Cool, right? You've got to be excited right now, right?

Like, okay, how am I going to guarantee my success? Here's what I mean. You're excited because everybody wants a guarantee. That's what everybody wants. I mean, when I asked you just a moment ago, if you knew your success in real estate was guaranteed, when would you get started, you likely answered with something to the effect right now.

You probably thought about it and considered dropping whatever it is that you're doing right now and getting started right now. But you didn't, did you? You did not? Nope, because you don't believe your, success is guaranteed. But if you did, if you did believe it without a shadow of a doubt, would you let anything get in your way right now? No, you wouldn't, would you? So that's what

we're going to do right now. We're going to remove all doubt, specifically the doubt about you, the doubt you have about yourself. We've removed all the doubt about real estate. Now it's time to work on you. And this isn't going to be a big rah-rah fest on how you can accomplish anything set your mind to, although that's true. That's not what I'm gonna share with you right now. I'm not here to build up your self-esteem. I'm not gonna share with you why I believe your success is, you know, guaranteed because you're a great person or whatever.

I'm going to share with you why I believe your success is guaranteed and how you can guarantee it for yourself. Okay? So before I get in this part, begin this part. Let me ask you, is anything in life really guaranteed, though? I mean, you're already doubting. Like, yeah, okay, you probably got a good answer for it, but is it really guaranteed?

Is anything in life really guaranteed? I mean, intuitively, we all know the answer to that question. Nothing in life is fully guaranteed because, you know, unexpected things can happen, right? It wasn't guaranteed that you'd get to work today, but you still went out and did it. It wasn't guaranteed that you made it to the gym today, but you still made it. It wasn't even guaranteed that your podcast listening device was even going to work. But you push the button and by golly, there it worked. Right?

You can always find exceptions to a rule. I mean, unexpected things can happen. But there is a general rule of which is easy to follow that will guarantee your success. You can guarantee your success with this course, with this instruction. with the strategies and the techniques, you can guarantee your success with real estate. You can guarantee your success with business with anything you want if you adopt this specific philosophy.

And I've adopted this specific philosophy. And over the last several years, it's treated me very well. I've done it with several businesses. I've coached to many students that have done it. And it works for anything. I mean, I just applied the same philosophy with regards, to my health. I dropped 40 pounds and achieved my goal of being in the best shape of my life at age 45. I entered a physique contest even. And my goal was to not finish last. And I did not

finish last. It was like third to last. But I didn't finish last. My goal was to blend. And I did. The point is this philosophy, it works. It will work for anything. It will work for you. Now, I'm going to ask for a little bit of leeway to demonstrate. It will be worth the time, okay? You see, there's more information available today than there has ever been. I mean, the amount of knowledge in the world, it seems to double every two or three days. I forget the actual statistic, but there's more information today than has ever been available. And there's more technology to discover and deliver that information than there has ever been.

information is readily available to whoever wants it. It's there for the taking. Just go to Google. You can find out whatever you need to find out. The answer to whatever questions you could possibly have are available and easily accessible. We live in an unprecedented time. We are so blessed. We are so fortunate.

There is so much possibility at our fingertips. The solutions are there. So why are people still? searching for the secret, quote unquote, to success. Well, people are still searching for the magic formula to higher achievement. They are, whether it's getting in shape, whether it's financial freedom or the perfect relationship, because they're looking for that missing piece of information that will miraculously make success happen for them.

They want to know how to succeed. They want to know how to succeed desperately. I mean, if they only had the knowledge, if they only had the right process, then they'd have the power to succeed. That's what they believe. That's what the majority thinks. Whether it's consciously or subconsciously, that's what they think. And what they don't realize is contrary to popular belief is knowledge, having the right information, knowledge is not power.

It's only potential power. Information must be delivered in the right environment and with the correct associations for to be effective and truly powerful. Additionally, that knowledge must be backed by the right kind of action for the power of that knowledge to manifest. Knowledge must be backed by consistent and persistent action. And there, and therein lies your specific success philosophy. All right, now allow me just a little bit more leeway to demonstrate what I mean.

and I'll bring this all home so that you can know exactly what it is that you'll need to do on a daily basis for you to make as much money as you want in real estate using none of your own money and none of your own credit. Okay? We'll be there in just a second. Let me ask you, what was your New Year's resolution this year? The New Year's coming up, you're getting ready to make a new one, right? What was your New Year's resolution?

Was it to make more money? Was it to lose weight? those are the two most common resolutions amongst Americans, by the way. That's why I asked those, make money or make more money or lose weight. Or maybe you didn't even make a resolution. Maybe you don't believe in resolutions. You didn't make one this year. And that right there, that would round out the top three.

More money, lose weight, and why bother? You know, some people think why bother? Because New Year's resolutions don't work. And the truth is, for most people they don't. And here's why. Let's say your resolution this year is to lose 30 pounds. I'll use that example because it's relatively, hits close to home right now, just lost 40.

But let's just say your New Year's resolution is to lose 30 pounds. If you were to start your weight loss plan today by spending 30 minutes on the treadmill today, would you expect to lose 30 pounds after your first 30 minutes on the treadmill? I mean, you got up early, you went to the gym, you hit the treadmill for 30 minutes, you came back, and you're getting ready to take a shower, and just before you get in the shower, you look in the mirror, would you expect to see anything different? No, of course not. Especially not losing all 30 pounds. Would you expect to lose those 30 pounds after a week of hitting the treadmill 30 minutes a day?

Again, no, right? It'd be ridiculous. You see, if you want to lose 30 pounds, you're probably. probably aware that it's going to require getting on that treadmill every day over an extended period of time. It'll certainly take longer than a week to make it happen. It'll take at least a month and most likely in real world two to three months, maybe even more. Conversely, though, the same is true. If you missed a day on the treadmill, would you expect to gain 30 pounds? Again, Of course not.

You're not going to gain a whopping 30 pounds from one missed workout, but, you know, for going a day on the treadmill would certainly not help you towards your goal, would it? No. So if you're wondering where I'm going with this, I want you to simply understand that the decision to get on the treadmill every day will contribute to your weight loss, and the decision not to get on the treadmill every day will contribute to weight gain. Now, that example, it's oversimplified, I know.

But I want you to understand is, I want you to understand the power to succeed lies in the power to choose, to decide. Specifically, the power to succeed lies in the power to choose consistently. The reason why people fail to reach their goals is because they fail to consistently make the choices that will realize them. This philosophy is painfully simple. But don't underestimate its power because of its simplicity. And here's where the simplicity of this philosophy is frequently and tragically dismissed. I mean, this is how most people fail, regardless of what it is that they aspire, whether it's real estate or anything else. You see, it's easy.

It's super easy. It doesn't take a whole lot. of extraordinary effort for you to step on that treadmill and walk for 30 minutes. I don't care what shape you're in. It's really easy to get on that treadmill for 30 minutes. If you want to do it, you'll do it. If it's important to you, you'll do it. It's easy to do.

Yet, it's also easy not to. It's also easy not to get on the treadmill. And there, right there, there lies the trap that snares most people and keeps success just beyond their grasp. You see, the right activities are easy to do. I mean, we're in a first world country. We got first world problems. There are people in second world countries and third world countries. I don't know, second world country thing, but third world countries that make do, that come to the U.S. and crush it.

The right activities are easy to do, yet they are also easy not to do. Whether you get on that treadmill today or not, nothing is going to happen in the moment. And that's why it's easy to do or not to do it. It's easy to believe that today's decision to run or not to run is insignificant. Because you know by missing a day on the treadmill, you're not going to gain 30 pounds, and you know by getting on the treadmill, you're not going to lose 30 pounds. So it seems like this one day is, you know, is insignificant, but don't be fooled.

Your decision is significant. Even though you don't see instantaneous results. It's the little decisions. The tiny acts of discipline carried out over time that produce a compounding effect of which results in success. You need to embrace this what I'm about to say right now. Every choice matters. Every decision matters.

every one of them. Either your decisions are compounding up or they are compounding down. Be consistent and persistent with the right decisions and success will be yours. Be consistent and persistent with the right decisions and your success is guaranteed. This is the philosophy that will produce your success. Adherence to this philosophy is what will guarantee your success. This philosophy is the power behind. behind accomplishment.

It's the secret to success. It's the secret not just a real estate investing success, but any success. Each decision that you make has power. Every single one of them. Each and every one of them has power. It either gets you closer to your goal or it doesn't. And this power, it takes no time off. It's always working.

Every decision you make, including the very next decision you make as you're listening to this show. It's either compounding up or compounding down. It's always working. Every single decision you make matters. Your decisions are either working for you or they are working against you. And that's great news. The great news here is that you actually get to choose which way it will go. You have total control, total control over your future. Now, that thought, boom. I just gave you a bunch of power right now. You are a very powerful person right now. And the thought of that may scare you.

The thought of you having total control of your future might terrify you. Or it may empower you. It's your choice. Do you want it to scare you? Do you want it to empower you? Do you want it to stop you or do you want it to kick you in the ass? You have total control of your future. You get to say how it goes.

Either way, there's no. turning back now. The truth has been revealed. Where you are today, where you are right now, is a result of all the decisions that you've made in the past. All the decisions that you've made in the past, not anyone else, not other circumstances, not other people. Where you are today is a result of all the decisions that you have already made. Nothing you can do about that. You already made those decisions. But where you end up will be a result of all the decisions that you make in the future, beginning with your very next decision, meaning right now, you have control.

So what decision are you going to make next? What decisions will you consistently make from this point forward? All righty. You ready to get started? Okay, let's do this. You know, the purpose of these first four episodes this week was to gain your consent and your commitment and prime your mind for what's to come

and lay the foundation for the action steps that are about to follow. The how-toes, they're up next. But without the groundwork that we've laid over the last several days, a list of how-toes and action steps wouldn't even matter. They wouldn't make a difference for you. they wouldn't even work for you. They wouldn't make a difference. With a giant list for you just to follow, it wouldn't make a difference.

You know, as I've said, inciting many different examples, and I'm always looking for different ways to approach this. I can teach you this business rather quickly. I can teach you how to write the perfect yellow letter in less than 30 seconds. In fact, I do it in less than 30 seconds inside of the free course. I can teach you how to do that perfectly. That's the easy part. What's not so easy to do is to teach you to get out of your own head,

to get out of your own way, and get out there and write as many letters a day as possible every day and mail them to prospective sellers. That's the hard part. It's easy for to teach you how to do it. What's difficult is to get you to do it every day. the consistent and persistent action that's going to guarantee your success. That's the hard part for me to teach, you know, without losing you.

It's hard to keep this part compelling. It's hard to keep this part entertaining and keep your attention around this. It's hard to teach without inevitably someone in the audience asking me the ridiculous question. Yeah, but where's the meat? Hear that all the time and I freaking hate that question. because this is the meat. You all, each and every one of you all have undoubtedly listened to many podcasts. You've read countless books.

You've watched endless online videos. You've attended seminars. You've attended workshops. You've purchased and participated in courses all loaded with quote unquote meat, right? All different types of tricks and techniques and strategy. You've got tons of meat. You've got meat coming out your ears. You've all got the meat.

You know what to do. Doing what you know is the missing ingredient. I mean, do you really need any more meat? Or more specifically, is what you think the meat is, is it really the actual meat? Are you out there still searching for the secret to success? Are you... Do you really need any more meat?

You've got enough. You know what to do. You know exactly what to do. Doing what you know. know is where the breakdown is. You see, most people skip over the mindset and the foundational elements of becoming a successful real estate investor. They skip over this part.

They skip over mindset. They see mindset in the headline of a podcast episode and they skip that one. And it's why they never become a successful real estate investor. So don't do that. I'm not going to allow you to do that. Not on my watch. I mean, if this is your very first exposure to you. real estate investing and real estate investing education.

All right, you're fortunate. You're hearing how it is right up front. You're hearing about the road that you do not want to go down. So you're hearing about it right up front. Now, what you choose to do with this information will determine your fortune. You're fortunate enough to get this information right now. But what you do with that information is going to determine when your fortune arrives and if it arrives at all.

You know, if you ignore these last four days, for any reason, or if you dismiss them as another feel-good motivation series of speeches, or some rah-rah armchair rhetoric or a bunch of cliches or, yeah, yeah, tell me something I don't know stuff. You've really wasted your time here. In fact, until you get this part, you're wasting your time regardless of the next step.

take. This is the hard part for me to teach. But I keep trying. I keep trying because I know this is where the difference for you, I know this is where it's going to be made. Whether you've never completed a transaction or if you're in a place where you are completing transactions but not as many as you'd like. This is where the difference is going to be made for you. It's the hardest part for me to teach. As well as as being a human being, it's also the hardest part to learn. I mean, it may be very easy to understand. You might be sitting there nodding your head and agreeing with every word that I say. It's easy to understand.

But it's the hardest part to truly learn and implement. Based on what I've come to know of you, this time is different. You are ready. I can feel it. You wouldn't still be listening to me if you weren't. You are ready. Now, having said all that, we're not going to spend this entire time on your beliefs, on your faith and your philosophy, your mindset.

I mean, at some point, your brain must meet your brawn. Your thoughts must translate into action. And that's what's next, the how-to portion of getting back to the basics. Now, this portion, it involves many visuals. It involves many resources. It involves documents and downloads that this podcast. or any podcast for that matter, just the spoken word, just an audio version of instruction, could ever do justice.

So pull out your laptop or belly up to your desktop and go to free real estate investing course.com. Go to free real estate investing course.com. I want you to skip ahead to lesson four part two. Skip ahead to lesson four part two. Skip ahead because over the last four days. we just covered the first four lessons of the free course. All right.

So unless you want to repeat those, just go ahead and skip to Lesson 4, part 2. Go to Free Real Estate InvestingCourse.com, skip to Lesson 4, part 2 of where I'll be waiting for you. I'll be there. Okay. And we will continue this week's work by introducing you to the daily disciplines, the daily activities,

the daily things that you need to do consistently and with persistence, the actual things that you should be doing that produce successful millionaire real estate investors. And then I'm going to follow that lesson up with the how-toes of finding awesome deals that will generate piles of profit for you, how to secure those deals and block out your competition, because less competition equals more opportunity.

I'm going to show you how to do that. And how to align yourself with motivated sellers so that they offer you additional discounts. and I'm going to show you how to find the money to close your deals, multiple ways in doing that. And I'm going to show you how to create lasting wealth for you and those you care about most, those that are depending on you. So go to free real estate investing course.com and skip to lesson four, part two. And if any time you find your mindset wavering, revisit this week's episodes, beginning with episode 127.

Right now, go to free real estate investing course.com and skip to Lesson 4, Part 2. All right, I'll see you there. Okay, longer than normal episode today, lots of stuff here, though. And it may make sense to listen to this episode again. All right, I've got so much faith in you that you're still here. You're going to do great, all right? So, you know what time it is now. It's time to give away this episode's $100 Amazon.com gift,

card. And, you know, as I've mentioned, I'm doing this over the month of November. And all you have to do to be eligible to win is to go to iTunes and leave a review of the show. If you've already left a review at some point in the past, then there's nothing for you to do. Okay, you're already eligible. You've already entered. But if you'd like to enter, go ahead and follow me over to iTunes. Head over to iTunes.

Type in Epic Real Estate in the... in the search bar I'm doing right now and then once you find it oops I messed up find it go and click on the little artwork there that you see of my face

in front of the house big giant letters say epic and then go to ratings and reviews and there you go you can just click the little button it says write a review and since I'm here right now I'll show you how this works. I'm going to spin the scroller.

Spin, spin, spin, spin, spin, spin. Let's try something here. And boom. Stop right here. It says, headline says, thank you with an exclamation point. Five stars. This is by Add 360 Spider, AD 360 Spider, and that spider with a spider.

left on, that's actually just a few days ago, November 3rd, 2014. Says Matt, I am a 21-year-old from the Bay Area and I bought my first house in Kansas City because of you. After about 100 calls back from my yellow letters in the Bay Area, I realized that this market simply won't do it. So I did my research and I landed in Kansas City to start my investing. Long story short, I was successful and I am currently closing escrow on my first. investment house. Did I mention I was only 21? Yes, you did, but I'm so proud of you.

Thanks so much for your guidance, as I will continue to listen to the podcast, Adam D. P.S., I went to your first grub and grow rich event in Los Angeles. Of course. Adam, well, congrats, bud. That's awesome news. So go ahead and send me an email, Adam, to podcast at epic real estate.com, and I'll reply right there. with a $100 Amazon.com gift card that you can use for yourself. And if I've announced you as being a winner of the last week or so,

I will be getting to those probably on Friday, probably Monday is when I'll be able to reply to that first batch, okay? And then you can use that card for yourself, for the holidays, whatever you want. So that's how it works. Every episode in November, I'll give one of these away. Okay, doke. So meet me back here tomorrow to conclude the Back to Basics Week as I've got something very special for you, a training on my five currently most effective strategies

for finding motivated sellers. So I will see you tomorrow on another episode of Epic 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.

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