Turnkey, Multifamily, Bitcoin, and more… with Mathew Owens | EREI 319

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Epic Real Estate Investing shares time with Southern California real estate investor Mathew Owens to breakdown the mindset for success in today’s market. Learn how you can build a cash flowing portfolio with real estate and live financially free with just a slight shift in focus.

Discover a strategy for long-term growth and sustainability so that you can achieve your goals consistently. Then listen as we cover everything from turnkey, multifamily, bitcoin and more with Mathew Owens of OCG Properties!

Turnkey, Multifamily, Bitcoin, and more… with Mathew Owens | EREI 319

What You Will Learn About Turnkey, Multifamily, Bitcoin and more with Mathew Owens:

  • How to be the kind of person that others want to work with

  • Why Mathew Owens was such an inspiration for Matt Theriault

  • The big why that is going to drive you to financial freedom

  • Learn how Matt Owen operates his business

  • Get your mind right for more success in real estate

  • How you can ramp up for more deals

  • PPC and direct mail marketing for steady lead generation

  • The great value found in leveraging relationships and forging partnerships

  • Finding multi-family deals in your market

  • The most critical facet of your business that you must develop

  • A long-term strategy that is most likely to provide growth

  • The mindset that you need to achieve goals consistently

  • How to get other people to bring you deals

  • How to contact Mathew Owens of OCGProperties.com via email at [email protected]

Turnkey, Multifamily, Bitcoin, and more… with Mathew Owens | EREI 319

Recommended Resources:

 
  • It’s been great meeting you virtually. Would you like to meet in person? Our next live event is right around the corner! Go to EpicIntensive.com for the details.
  • Need money? We have secured more than $15,000,000 of funding for the Epic community, people just like you. Get access to fast cash for your real estate investing business with our “one-of-a-kind” credit-based funding program at EpicFastFunding.com
  • Need time? Work on your business rather than in your business by leveraging the time of others.  Access free information and find real estate-trained virtual assistants to help you free up your time.  Learn more at VAsForRealEstate.com.
  • Need training? The ultimate training environment for real estate investors: Version 3.0 of The Epic Pro Academy!  New look, new lessons & new content – we’ve got everything you need to know to get your first paycheck!
  • Need someone to do it all for you? If you’re an Accredited Investor, you can diversify your portfolio by hitching your wagon to our train and share in the profits. Go to EpicWealthFund.com to download the executive summary.

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Turnkey, Multifamily, Bitcoin, and more… with Mathew Owens | EREI 319

Transcription

Speaker 1: This Theriault Media.

Speaker 2: Broadcasting from Terrio Studios in Glendale, California, it’s time for Epic Real Estate Investing with Matt Theriault.

Matt Theriault: Welcome to The Epic Real Estate Investing Show. Glad you found us.

If you’re looking for financial freedom and independence in your life, or if you understand how real estate has done that for more people than anything else and you want in it on it, I just want you to know you’re in the right place.

Got a great show for you today as I have an unexpected guest – actually, very much of a surprise. We connected here last minute and we have a really interesting background.

I want to introduce you to him in just a second, but if you haven’t heard, the next Epic Intensive is officially on the calendar January 25-27. The Cash Flow Conclave – the quite interesting name. If you don’t know what a conclave is – cause I thought it was really clever when I came up with this name, but apparently a lot of people don’t know it – it’s just a secret meeting. We’re gonna reveal the secrets of cash flow. All the details are available at EpicIntensive.com.

Then, unfortunately, the 25 receipts that typically we give out right in the beginning – those have all been snatched up, almost before we ever even made an announcement. But there is an additional opportunity for a free seat plus a guest – for you and the guest. You can go to the public Facebook page – Epic Real Estate Investing page – and answer the question to the post that’s pinned at the top of the page. We’ll be selecting three winners. I’m going to select one, my staff is going to select one, and you are going to select one. So as you’re reading those posts, the posts with the most “likes” is how you’re going to select that one.

So that’s it: facebook.com/epicrealestateinvesting. And we’ll be picking up a winner by the end of the week. Today is Monday, and you are listening to this Friday night. We’ll make the announcement on Saturday on the Facebook page. Okay. Go there now.

Then, also, I’ve been spending a lot of time over at Instagram. Probably the last person to create an Instagram account, but we’ve been doing a lot of work over there as far as sharing motivation and tips on escaping the rat race. If you follow me @epicrealestate and post on there one of the images – doesn’t matter which image – just create a comment that you are a podcast listener and anything else that you may want to share and I’ll follow you back. I’m not going to be one of those people that follows you back and then de-follows you in the next day or two. It’s like, what a scam that is! What’s the point?

All right. Let’s get to our guest.

When I share on the episode and I’ve been asked this or on this show, I’ve been asked this question so many times: “Matt, if you were to start over, how would you do it?”

I always say the same thing ‘cause when I got started, times were tough. There wasn’t a marketing budget available, and even at that time, if I had a marketing budget, I wouldn’t have known what to do with it. Not like I do now. I didn’t even know people responded to postcards back then, 10 years ago, so I thought it was a funny thing when I started sending postcards. I was like, “Oh, look how fast business goes.”

But I really was fortunate in the way that I started building the business ’cause I think it’s the best way. It might not be the fastest way, but it really was the best way because what I did was I just took the sweat equity, took my hustle, took everything that I had that’s free to use and deploy, and I started going to REIA meetings. I started to go to meet-up groups – any sort of networking group. I’d go to Chamber of Commerce. I’d go to – what was that? Toastmasters. I’d go to Rotary Clubs.

I’d go to everything, but I always went with a property flyer.

I always went with a flyer so when they asked you to stand up and introduce yourself – who you are, where you’re from, what do you do? – I always stood up with a flyer. And I was, “I’m Matt at… My company is Epic Real Estate, and I show busy professionals how to build cash flowing portfolios in their spare time so they don’t have to work so hard. You want some information on that, then I’ve got some flyers right here. Meet me after the meeting. I’ll be happy to talk to you.”

I just did that over and over and over again, and coincidentally – or how that’s all related to our show today – is I started representing our guests’ properties.

So that’s how it all started for me. I was making this transition from real estate agent to real estate investor and, as I’ve shared with you, once I started sharing those properties – I mean, I sold two or three of the properties for him and I referred some business to him and he gave me a nice referral fee, which was all nice – but what happened because of that activity under that action was so much bigger and something that I could have never imagined is I started to create this reputation as the deal guy – the hustler; the guy that’s always got the deal; the guy that’s in the trenches, in the business; and he’s always looking for buyers; always looking for sellers.

When you create that type of attention, that’s really appealing to people with those types of networks, ’cause they all want to be that person. If they’re not that person, they want to work with that person.

So that activity, which I could have never foreseen and certainly wasn’t part of the plan – it started attracting buyers to me. It started attracting sellers to me. It started attracting lenders and private money people.

I just owe a great deal of gratitude to our gentleman here that’s joining us today because if it weren’t for him – if I didn’t have his properties to sell, if I didn’t have that idea – who knows where I’d be today. I might still be back in groceries – I don’t know, or gone back to it – but anyway, please help me welcome to The Epic Real Estate Investing Show, Mr. Matt Owens. Matt, welcome to the show.

Matt Owens: How’s it going, man? I appreciate that very much, but I have to tell you, man – you have to give yourself all that credit because you are the one hustling with all of it. I just had a product, which was great, but at the same… I don’t know that you mentioned how we actually met in the first place. We spent about $16,000 on an education that we met at educational events and –

Matt Theriault: That’s right. That’s right.

Matt Owens: It was just the one relationship after another and things like that, and it fell into place.

Now I find myself learning a ton from you. Honestly, on your Instagram posts and your Facebook posts, I’m looking at that, going, “You’re doing it right. You’re providing value in every one of your posts.” That’s what I think is super cool about what you’re doing.

Matt Theriault: Awesome. Thank you. Thank you. Yeah. I certainly went out and did the work, but you were the inspiration for that. Thank you.

All right. We can stop stroking each other now. [crosstalk 00:06:13] You know what I think’s interesting about what you do, Matt, is… I mean, you were well in the business before I really had ever bought or sold my very first property on my own behalf. I think you were doing turnkey properties, and you have a turnkey business that operates out of Memphis. You can tell me what’s happened and what it is currently, but back then – I mean, turnkey wasn’t a word. You know what I mean? You were doing it. There wasn’t a name for it. Now, it seems like everybody and their mom and their dad are doing it.

Matt Owens: Right.

Matt Theriault: Share with me – what was your background before real estate, and how did you fall into that portion of the business?

Matt Owens: Okay. Well, it leads to the why, right?

The why is financial freedom. Basically, my background is, I’m a CPA, and I was working at various CPA firms. A lot of times on really big real estate clients – huge conglomerates that go buy apartment buildings across the county – but they’re getting government subsidies, so I’m having to go through and literally do audits on government subsidy. You couldn’t get a more boring type audit to have to do, right?

Matt Theriault: Right.

Matt Owens: But it was interesting, ’cause I was seeing the real estate side. I was working for a couple of different CPA firms, seeing the inner workings of different businesses, but bored out of my mind, going, “I cannot work for somebody else my whole life.”

I read, literally, Rich Dad Poor Dad. Then, thinking more rich and took those real estate classes I talked about and quit my job, and was like, “I’m done. I can’t do this. My mind’s already completely focused on real estate. I feel like this is the way to go.” I didn’t know what the heck I was going to do and, luckily for me, it was 2006. And I was a real estate genius for about a year before I got punched in the teeth really hard by the market [inaudible 00:07:55] than anything.

But to be quite honest with you, going through that fall so soon after I started was a huge blessing ’cause my learning curve went through the roof immediately. It taught me how to raise money. It taught how to maneuver when there’s problems. It taught me how to not quit more than anything else, ’cause as we both know, that’s the hardest thing sometimes, is to just not quit.

Matt Theriault: Right. Right. Particularly in our market. I mean, in Los Angeles, in Southern California, this is a tough place to do this business, right? There’s a lot of different obstacles here.

I mean, it’s certainly doable. We did it, but there’s a lot of different obstacles here that might not be in other markets… but, yeah. Quitting is always top-of-mind.

Matt Owens: I mean… You’re in the middle of a flip here in California, and if it goes bad, you’re bleeding cash flow immediately.

That’s one of the reasons why I went out of state is because maybe I’m just a scaredy-cat and want to go to a market that the properties are $100 and $150,000 versus $500, $600 – but at the same time, if I buy them and renovate them and tenant them, no matter what happens during the flip as far as value goes, I’d be covered by the cash flow for my debt payments. So that makes it a much safer-type position.

I tend to go to the cash flow as well as the capital gains income. I think every investor should do both in realty to build their base.

Matt Theriault: Right. Well, you got the four profit centers so as long as you’re holding – you’re going to be experiencing all four profit centers in real estate.

Yeah. Absolutely. It’s the magic of it. People get so focused on the cash flow and they’ll say, “Well, the water heater blew out and it stole a whole year’s worth of cash flow. What a waste that was.”

I’m like, “You’re not getting it. You’ve got the appreciation. You’ve got the amortization and you got the depreciation working for you. It’s still better return than the cash flow all by itself.” You know?

Matt Owens: I hear you, man.

It’s funny because in the beginning, when we started doing business together, I didn’t know about any of this stuff. I was winging it like crazy, trying to go for it.

Now that I feel like my systems are a thousand times better after going through all those ups and downs and the waves and everything else that you got to go through – now we own a management company, a renovation company, a real estate brokerage. We have our non-profit FIBI groups that help. Then we also do a lot of… we capital raise for different syndications and invest in those types of things. We’ve been doing a lot of hard money and private money lending and borrowing capital from investors, as well as the flip.

It’s cool when you see all these different strategies and they all relate to each other, ’cause what is real estate? You’re raising money. You’re finding deals – finding deals most importantly, right? Then you’re developing relationships and having all these team members come together, so it’s cool when you see these different strategies. I know you’re doing quite a bit as well right now?

Matt Theriault: Yeah. Totally. We’ve never stopped. We’ve never slowed down, right?

Matt Owens: Awesome.

Matt Theriault: I do have a question for you, though.

Matt Owens: Yeah.

Matt Theriault: When you get out of the single-man operation and you’re just, like – you’re hustling and buying and selling all by yourself, and you’re running the show, and you’re doing a couple deals a month, maybe – then you get to the point where you’re doing 10, 15. We probably do about 15 turnkeys a month and we probably pick up three or four properties that we hold for the fund.

Then we do various things with that, but I’m interested in what you do. We haven’t really – I don’t know – interacted just from a distance for several years.

Matt Owens: Yeah.

Matt Theriault: Now that… I know you still have your turnkey operation, right? You still do that?

Matt Owens: Yeah. Yeah.

Matt Theriault: Okay. And you st-

Matt Owens: We do about 10 houses a month right now.

Matt Theriault: Okay.

Matt Owens: We’re trying to expand to about 20. We’re hiring a ton of acquisition people and things like that right now. It’s going really well.

Matt Theriault: Perfect.

That leads into my question. When you’re trying to ramp up and do it like that and get to that next level – whatever that next level is for you – and you’re raising capital for a fund and syndication, stuff like that – what’s your favorite places today to find your deals?

Matt Owens: We do a lot of pay-per-click and direct mail marketing. It takes a ton of effort from that regard, right? You have to make sure you’re tracking every key performance indicator in order to do it in the first place. You need to have a budget. You need to know that you’re going to do it for six months with possibly very minimal success in the very beginning, ’cause you probably suck in the beginning.

That is one aspect, is doing that, and getting the right data sources, but a lot of times, it’s having someone that is following up with every single pending listing that’s going. It’s looking at every vacant house that you can find and trying to call them and cold call and see if they’re interested in selling or if it’s an owner occupant or a private investor that’s managing it themselves. Or sometimes we find other ways of buying a property.

We’ll go after notes instead and try to buy defaulted notes in that market so that we can actually go through and foreclose on it if we need to and get a property that way.

It’s having people that are hustling on the ground all the time for you because you can’t do it all yourself. You really need to partner with other people on that side and pay them to help you with that, and maybe it’s a referral fee or they’re helping you – preferably agents, so that that way they can get paid for that – but one thing we do to keep our cost down is we’ll go through and we send our agents to the properties to try to buy the properties from the homeowners and develop that rapport, and things like that.

They are armed with a purchase contract, which is basically – they already know the price minus whatever the rehab estimate is going to be as our max price. Then, also, a MLS listing agreement, so if they won’t sell us the property, we can try to get the listing and help pay for some of the cost. It keeps additional commissions going for your sales agents of additional income source as well, to keep those lights on and keep things going. We take a big chunk of that because we’re paying for the marketing, but give our people a cut of it as well so that they’re making money in multiple ways. ‘Cause that’s one of the hardest things, is keeping really good acquisition agents that don’t get burned out. So that means they got to be making money. That’s hard in the beginning.

Matt Theriault: Yeah. Yeah. The best way to motivate is to compensate.

Matt Owens: Actually, yeah. Exactly. Show that they’re helping people, too. We take the mindset of, even though we want the deal and we want it at a good price, we’re not going to get the deal if we’re not helping someone, too. If you’re talking with a homeowner, yeah, you want to get your price, but if you can get ’em where they’re debt’s paid off – they’re in a great position, maybe, in a rental – that they have money in the bank. They have savings. They have a financial plan in order, or something like that. You solve their problems in different ways, and you’re bringing value to the table because you’re solving those problems.

Matt Theriault: Right. Absolutely.

Matt Owens: I think that’s the most important way to sell and get those deals.

Matt Theriault: Yeah. It’s good that you just said that, ’cause I think the longer you’re in this business, the more you realize how much of really your primary role is that of a problem solver, right?

Matt Owens: Right. [crosstalk 00:15:11]

Matt Theriault: It’s been a big theme this year on the show, and I’ve really been trying to drive that home because real estate’s hot right now. And the education space is really hot, which means there’s a lot of newly educated real estate investors out in the market right now, and all of a sudden, your competition elevates, and that low-hanging fruit might not be so easy to grab anymore.

You can’t abandon your intuition. You have to become more resourceful, and what we were just saying when I was asking just how are you finding deals now and you just laid out two or three different things that are very different than probably how most people go about it.

You’ve got your agent going out there and they’re writing the offers, and you’re still doing the pay-per-click. You’re still doing the direct mail, but you understand it’s consistency that’s really going to win, so you’re prepared budget-wise to go six months without any real results.

There’s a question I had… multi-family – it’s really big right now. A lot of people into multi-family and apartment buildings.

I just dumped three of them ’cause I thought they were a pain in the ass, but maybe that was just me. Maybe I was a bad operator. I’m just going to stick to my single-families for now. I’ll reload, but I need to clear some headache from my space first.

But all of my multi-family has come from me marketing for single-family, and the person I was talking to happened to own multi-family units, and that’s how I made those acquisitions, which are [fun 00:16:40]. I think you’re going after multi-family. Is that correct?

Matt Owens: Yeah. Last year – the last couple years – we bought a nine-unit, a 12-unit, a 16-unit, a 30-unit, and a 19-unit. We did value-adds on those and we resold them to other investors that want the cash flow.

Most of our investors, a lot of them, are international clients that live in Japan and China. A lot of ’em are in Japan because they can write off the building portion over five years for depreciation purposes for Japanese investors. We do a lot of that where we try to value-add in.

In this kind of market, I think it’s important to buy something… where you can create a value-add out of and get that built in equity because I feel like we’re at the top of the market.

And with the multi-families as well – they’re a little bit different than the single families, where single families, you can get a good family in a property. They’ll stay a long time. If you have a lower-end or lower cost-point multi-family from a tenant standpoint and a rental standpoint, it’s really hard to manage that turnover and manage the different people in different ways. Your management has to be ridiculous on those things, but if you can try to get a little bit higher in rents on a multi-family versus what you might be okay with in a single family, you can kill it because you can keep that quality up.

Our multi-families now in our 30-unit and our 19-unit. Our 19-unit in Memphis rents for, like, $895 a month. We bought it for $149,000, and we’re into it after rehab was $650. It was huge, and that one – we’re into it for nine now after everything and holding costs and, of course, overages on the rehab and all that stuff, but it’s worth about $1.735, which is… That’s a home run deal, right?

Matt Theriault: Right.

Matt Owens: Worth… A unit we’re into for about $1.15, and we’re selling it right now for $1.739, but I have one partner on that one. Sometimes I’m like, “Dang it. I should’ve raised debt instead of equity on that.” But at the same time, it takes a lot of risk off your plate when it’s a lot of equity versus that debt, right?

I really [inaudible 00:18:53] multi-families, but I like the repositioning of those more than down the line. If you’re holding ’em long-term with low leverage, that’s great, but sometimes the financing is seven years or 10 years max and you don’t get that 30-year fixed where you don’t have to worry about it ever again, you know?

Matt Theriault: Right. Right. Totally.

Would you say… Well, how are you finding your multi-family deals? What’s your avenue for that? Or your channel for that?

Matt Owens: The first way is I know brokers in the area that focus specifically on the multi-family aspect that can shoot me deals. I’ve made lots of relationships, and once you close a few, it helps substantially, where they know you because you’ve closed with them. You did exactly what you said you were going to do and you came with cash to buy it, too, which is huge on multi-families, to be able to do that to not have to worry about the bank financing.

But when it comes to that, I first review all of those as much as I can. Then I have other people trying to go and scour the market for the same type of way as a single family where we can get a list of every single multi-family in the area. Sometimes those lists don’t necessarily have the owner information on there. They might have an LLC information or something like that. Then you got to skip trace those people to find them, to try to call them.

The marketing’s a little different, right? You’re just trying to hit their pain points and say, “Are you sick of bad property management? Are you sick of repairs and tenant problems? Do you not have enough money to get good quality tenants? We can reposition your assets for you and even bring the money to the table for a rehab, even, and partner with you if you want us to. Or we can buy from you in cash if you want to cash out.”

Those types of things are the possible solutions to some of the headaches we all know about when we’re managing multi-families, right? We’re just willing to deal with the headache sometimes and try to find as many ways possible to solve ’em to then be able to go through and make a lot more money off of those deals, right? It’s called operations.

Matt Theriault: Perfect. Sweet. Thank you for sharing that.

Matt Owens: Yeah.

Matt Theriault: Yeah, no. That’s good. That’s what I was looking for.

One thing that you guys have running right now, which has been really impressive to watch grow over the years – it’s one of the strategies I teach as far as finding deals, finding buyers, finding sellers, finding… really works well for finding private money.

You could probably attest to that. That’s just creating your own group. We teach people to go out and network. Go to REIA meetings. Go to meet-ups. Go to all these different networking things, but creating your own is a really good idea.

Sometimes people look at that and, wow, it’s actually an undertaking.

And that’s how Mercedes and I really got started was where we started to take off is we created our own group. We met with our own group and just so much magic comes out of it. It’s intangible, but if you look in the rear view mirror, then you’re like, “Well, this relationship came from that and that led to 17 deals over here. Then this relationship came from that and that led to this and we’re still doing deals with them today.”

You started a group called FIBI, For Investors By Investors. Have you ever got a call from FUBU, by the way?

Matt Owens: No, but when I’ve said that, multiple people have said FUBU? I’m like, “No, FIBI.”

Matt Theriault: FIBI. Yes. All right. It’s just a different vowel, but For Investors By Investors. You got several chapters here in Southern California. Talk about how that started and what it’s grown to and what it’s giving you.

Matt Owens: It was started by a couple of full-time investors by the name of Jeremy Role and Elis San Jose that were tired of going to the classes that are… They’re gonna sell the book and tape set or the upsell that’s $25, $30, $40,000, and they wanted a place where it wasn’t a normal real estate club where they’re trying to pitch you something each time, where they’re really adding value, and at a place where people don’t get sold something. But at the same time, we go through and bring people together to educate, as well as develop the relationships in the room. It’s really like a tightly knit group because everybody… that trust is already built.

Now, don’t get me wrong – there’s some people we’ll have come in and I’ll have ’em show their education because there’s really valuable education out there. I’ve taken it. I’ve taken note classes in a weekend that completely changed my strategies like that, and some of those things are ridiculously valuable. But the fact that most real estate clubs every month – they’re pitching you something at the end of that night so that speaker gets a little bit harder to trust just because that pitch at the very end, right?

Matt Theriault: Right.

Matt Owens: It’s the run-to-the-side-of-the-room mentality, and “buy it right now.” You know what I mean?

It was started from that. It basically grew afterwards. Myself and another partner named Dave came on board.

We started in 2008 with six people in a realtor office. It started initially with the two first guys with two people at… a Starbucks, trying to get together to meet.

What’s cool about it is we’ve been running it every single month. Totally different topics. We got about five chapters throughout Southern California. They all run different topics, like how to flip a house.

You’re going to be coming in February to talk a lot about mindset and things like that – which I think is really, really cool – and how to kick off your new year, so pretty excited about that. We bring in high quality people that know what they’re doing – like yourself – to really be able to go through and add as much value as we can to people. And when I started doing that, my relationship base exploded, and the trust gets built because you’re in front of the room coordinating the whole thing. Whether you know what you’re doing or not, people will come to you and bring you resources.

Four or five people brought me deals last night at our holiday party. Just were like, “Hey, I got something for you that you got to see this.” There’s a rehab deal in Inglewood that I know is going to be a gold mine on multi-family if the numbers can work out. It’s just little things like that that are value-add.

You find about all these new ways other people make money, too. Not just, “Hey, I found a lender and an attorney and a CPA and all the team members you need.” But it’s the “Wow, you’re doing that strategy or that new technology just came out that I didn’t even think about because…” And something is changing and just the way people interact. It’s like how you’re supposed to talk with the people that think like you to help to move you forward and have your network be on your level – trying to focus on or above your level, hopefully, to try to help you move forward, too. I think a ton of benefits.

Matt Theriault: Totally. Yeah. Now you’ve got… do you have out-of-state chapters now as well?

Matt Owens: We had one in Arizona, but they died down, so we’re actually getting our stuff together substantially on that just because we’re hiring people now to come in and help us with our sponsorships with… ‘Cause it’s a non-profit, so we just basically go through and have specific sponsorships to help pay for the groups. We don’t really make much money at the groups, but we make a ton through the relationships. That’s really where all the value is and what we got out of it, but we are looking at expansion of different area and things like that, too. I think that it provides a ridiculous amount of value.

I mean, just like yourself, I’m excited. I think I’m going to be able to come to the Intensive and stuff like that that you’re having. Dude, that’s ridiculous value. When we were in our Mastermind group together, the value in the room, of being in a room like that, and actually learning from somebody that’s already doing it or has totally different skill sets that you do in that industry, it moves you forward tenfold immediately.

Matt Theriault: Totally. Totally.

Matt Owens: It’s unbelievably valuable.

Matt Theriault: At the Intensive, we always do a… Halfway through day two, and all of day three, those that want to go ahead and give some comments about what they liked best about the event, we’ll take those interviews.

We watch them all afterwards, and the two things – or the one thing that people always say or that…

Okay. I had two thoughts and I just combined them together so it’s really just one thing, but what they always say is when we ask them “What did you like best?” I want them to say, “Well, that cool little Facebook strategy that Matt’s doing is like that’s killer. That’s ninja.” Or “His new marketing piece is amazing. I can’t believe how it’s worked.”

But they always say the same thing: “I love the people here. The conversations I’ve been having in the hallway with people have been just as valuable as the stuff that I’ve been hearing from the stage.”

Matt Owens: Right. Right.

Matt Theriault: There’s fast ways to do this business. You can do a massive marketing direct mail campaign or a pay-per-click campaign. You can generate a bunch of leads fast if you got the budget to do that.

That’s the fastest way, but I think the best way is through the relationships. I mean how… We hardly have to hustle like that anymore just because of the relationships we’ve built over the years, and your business is very much the same. If you go for nothing else, go for the people. You need to interact with as many like-minded individuals as you can. Being an entrepreneur, being a real estate entrepreneur – it’s a lonely business sometimes.

Matt Owens: It’s funny, because when you talk about the relationships on that side, too, it’s really cool that you can find ways of trying to, as a business owner – which is all of our goal and have that true financial freedom and do nothing – but keep your real estate business going so in those relationships you can have a ton of different strategic partnerships with different people with different skill sets.

For example, I go through and I’m part of a fund -one of the funds that I developed previously, where I had someone else doing all the due diligence work -which I reviewed it, of course, and made sure that they were accurate in what they were looking at, but I just raised some capital over here. Now they’re doing all the work for me. I have someone else that buys discounted notes for me, non-performing notes, does all the work. I raise the money from private investors and they do all the work and we split the profits 50/50.

Now, how cool is that? I’m not doing anything. Granted, I took 10 years to develop all these investor relationships, but-

Matt Theriault: Absolutely.

Matt Owens: It’s a matter of looking at your resources and how do you combine different people in the room that have totally different skill sets that can be ridiculously valuable in a ton of different ways.

Matt Theriault: Right. Just our relationship, for example. I mean, it’s been, what? 10 years since I referred those original properties? And we haven’t done anything together since, but I know if anything comes up, I know I can call you and I’m gonna get your serious attention and consideration and vice versa, right?

Matt Owens: Right. Right.

Matt Theriault: Yeah. You keep on creating those relationships. All of a sudden, you got this database and you have options now. You have bonafide options that no one else has because you put in the work up front, right?

Matt Owens: Right.

Well, I think we do do some things together. Like, for example, the FIBI group that I’m going to have you come speak at, and we had you come last year to our Manhattan Beach group. You added a ton of value to our audience, so I look at that as something where we’re working together on those types of things, you know?

Matt Theriault: Yeah, no. Great. Thanks. I was thinking more real estate related, but no, it builds in so many different dimensions.

All right. So, 2018. What are you most excited about?

Matt Owens: I’m hoping there’s a crash so we can all make a lot more money.

Matt Theriault: I heard a really interesting theory. I think it was Gary Vaynerchuk’s podcast. Do you listen to him at all?

Matt Owens: I’ve heard of him before. I think I’ve listened to it one or two times. Yeah.

Matt Theriault: Yeah. I’ve been really trying to broaden my horizons with the different podcasts I was listening to. And I was listening to one of his and someone asked about the economy. And he was being interviewed, and the subject of Donald Trump came up. He says, “You know what? I think Donald Trump’s ego around business is so big. He might finance the whole history of this country just to make sure that the economy doesn’t collapse on his watch.” That’s what he’s thinking. The day he’s out of office, watch out, ’cause it could be crashing, but he actually felt like we got two or three really strong years of “stash as much cash under the mattress” as possible.

Matt Owens: Yeah, no. I mean, we’ll definitely see what happens.

I feel like the Federal Reserve doesn’t really have much play left in interest rates. Well, if the Bruce Norris’ of the world are right when they say there’s a 2% interest rate coming or something along those lines, but it’s the only monetary policy they can do to try to prop us up further, but as we all know, the government does it after the fact that usually makes things worse. Most everybody in charge, no matter who it is, doesn’t know what the heck they’re doing in the first place.

Matt Theriault: Right. Right. On that note, how much Bitcoin do you own?

Matt Owens: $200. I made a 50% return in, like, three days.

Matt Theriault: It’s amazing, isn’t it?

Matt Owens: I’m like, “I’m just gonna gamble on that?” But I did the math. If I would’ve bought it in 2013 with $25,000, I would have [bagged 00:31:47] $30 million right now. It’s like-

Matt Theriault: Yes. Yes. I know. I know. There’s some of those guys out there. There’s people playing that game, sitting and waiting for a while.

Matt Owens: The Facebook twins actually were known as… I guess they’re known as one of the first billionaires from Bitcoin or something like that.

Matt Theriault: Oh, was it right?

Matt Owens: That’s crazy. Interesting.

Matt Theriault: I had this epiphany, I guess, maybe about two weeks ago. I just started looking back in history of all the things that I initially rejected. Why was I so stubborn and so hoity-toity when these new things get proposed to you? Bitcoin was introduced to me in 2009 and I just like, “You got to be kidding me. What? You’re buying computer chips?” It’s $1000 because I think that that year or that moment, it was $1,000 for one coin. I know it did a massive drop, but I was like, “You only get one coin for $1,000?” I didn’t even comprehend. The same thing with-

Matt Owens: I didn’t even know what it was.

Matt Theriault: I know it. I know it.

Matt Owens: [inaudible 00:32:47] I actually watched a TED Talk about three months ago on it. I’m like, “You know what? I should just go buy, like, a grand worth.”

Then of course, I’m like – I put it off. I’m like, whatever.

Then, of course, three days ago, I got it, which I would’ve made so much more money, but this is how this works, right? It’s gambling. You get a real value behind it right now other than blockchain technology, which that’s going to be a game changer when it comes to every single industry – especially real estate. The verification of blockchain technology as it comes to title companies verifying title and different [inaudible 00:33:22], lenders and people like that, how you can have a peer-to-peer-type system. We’ll see how it develops, but it’s really interesting – the implications in real estate specifically.

Matt Theriault: Yeah. It is. William, who works in here with the technology in our REI Ace program in implementing all the systems and stuff – he went out and bought bitcoinhousebuyer.com. I was like, “Gosh, I wish I would have thought of that. That was a good one.”

Matt Owens: That’s great. Yeah.

Matt Theriault: Anyway. Cool. So, if people want to learn more about – if anything that you said was inspiring and intriguing, as so much of it was – I never know what resonates with people, though. You said something, then people want to get in contact with you – what’s the best way for them to do that?

Matt Owens: Go to my website, which is ocgproperties.com, or you can email me at [email protected].

Matt Theriault: Ocgproperties. That’s Owens Consulting Group, yeah?

Matt Owens: Correct.

Matt Theriault: Ocgproperties.com. Email him at [email protected]? Is that what you said?

Matt Owens: Invest.

Matt Theriault: [email protected] or go to ocgproperties.com. Or go to ocgproperties.com. There we go. We’ll put it in the notes. You can go… We’ll straighten it out, but I think we got it good.

All right, Matt. Well, it’s been a pleasure. I’m going to see you, worst case, in about a month and a half or so.

Matt Owens: Yeah. I’m looking forward to it, man.

Matt Theriault: [crosstalk 00:34:38] I apparently missed the holiday party last night so I won’t see you for that, but have a Merry Christmas. Have a Happy New Year, and if you need anything, reach out. Otherwise, I’ll see you at the end of January.

Matt Owens: Cool. Thanks, man.

Matt Theriault: All right, bud. Take care.

Speaker 2: 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 the 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 Theriault.