Survival – The Second Level of Real Estate Investing | 414

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Second Level of Real Estate Investing

Matt Theriault and Epic Real Estate are proud to present The Six Levels of Real Estate Investing! Today, Matt shares the second level of real estate investing: survival. Learn all the traits of survivalists, how to overcome the vulnerabilities faced at this level, and specific steps you can take to make it on to the third level of real estate investing.

Second Level of Real Estate Investing

What You Will Learn About Survival – The Second Level of Real Estate Investing:

  • What the second level of real estate investing is
  • How to get to the third level
  • How to start investing in real estate for free
  • Exact steps to take your business to the next level
  • How much money you need to be making to be considered “in the survival phase”
  • Traits of a second-level real estate investor
  • How to overcome the vulnerabilities of the second level
  • Tips for organizing your business
  • Resources for second level-ers

Whenever you’re ready, here are a few ways we can help:

Work with me One-on-One

If you’d like to work directly with me on your business… go to REIAce.com, share a little about your business and what you’d like to work on, and I’ll get you all the details!

  • Would you like to meet in person? Our next live event is right around the corner! Go to EpicIntensive.com for the details.
  • Become an Epic community member at The Epic Real Estate Investing Show 
    One of my favorite things to do is share with investors the latest and greatest tactics and strategic friends I make. I do it every week and you can listen in by subscribing to The Epic Real Estate Investing Show podcast on iTunes – Click Here.
  • Grab my book, Epic Freedom ($1) 
    I frequently hear from people looking into investing in real estate for the first time, “How long is it going to take?” So much so, I wrote a short book about the 2 easiest and fastest strategies to a paycheck in real estate. You can grab a copy for $1 and I’ll pay the shipping – Click Here.
  • Join our Badass Investor Program and be a Case Study 
    I’m putting together a new Badass Investor case study group at Epic Real Estate this month… stay tuned for details. If you’d like to work with me on your real estate investing, go to FreeRealEstateInvestingCourse.com to get started.
  • Also, check these out:

Thanks!

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Transcript:

Matt Theriault: Hey, there, Matt here. Today’s episode brought to you by the professionals over at Lighthouse Advocates, where they’ve been rescuing businesses in the nick of time for more than 20 years. If you need help with marketing strategy, or wealth strategy, or tax planning, or asset protection, or CFO services, business innovation, bookkeeping, payroll services, project management, just about anything to do with your small business, Lighthouse Advocates’ team of professionals is your resource to whatever the rough seas of life are throwing at your business. They’ll bring you safely into shore, so go to lighthouseadvocates.com and request a business acceleration session. It’s free. You won’t be pitched. You won’t be sold. You’ll merely be pointed toward the right solution for you. When you’re there, just tell them that Epic sent you for some extra special attention. Go to lighthouseadvocates.com. All righty. Now, on with today’s show.

Speaker 1: This is Theriault Media.

Matt: Yeah. Hello, and welcome to Epic Real Estate Investing, where we meet here each and every week to share tips, strategies, advice, and wisdom from some of the greatest minds the business of real estate has to offer. If you’re looking for financial independence in your life, and ultimately financial freedom, then you are in the right place, and the first step is to shift your focus from saving piles of cash to creating streams of cash. Once you’ve got that mindset in place, it’s time to back it up with some action.

The second thing to do would be to download a free real estate investing course that I created just for you showing you how to get to your first, or your next, deal with very little to no money. I mean, you’ve heard about this for years, right? Doing deals that require no money down is the original program. The no-money-down real estate investing system, but if you really yet to find it, there’s always a catch, right?

Well, no longer. Here it is. I’m giving it to you for free. It is truly a no-money-down, no-money-needed investing program. Once you get this one deal under your belt in this fashion, you are so much more prepared than 99.9% of the other real estate investors out there, because then when you’ve got money, it actually becomes a lot easier, but you can do this with very little to no money. It’s how I did it. It’s how Mercedes and I built entire Epic Real Estate. I just broke it down. I said, “If I were to start all over again and I had nothing but lint in my pockets, this is how I would do it.”

Once you’ve got that one deal under your belt, the mystery of everything else, it just all kinds, it starts to dissipate. It starts to disappear, and then you can just shift your focus to more of them, just to more of accessing all of the wealth, creating aspects, real estate promises. Once you’ve got that mystery of that first deal behind you or you’ve been in a long slump, and you’re just looking to get that next one so you can get back on track, once you’ve got that behind you, then you can just really focus on doing what it is that you came here for real estate in the first place. All righty?

If you’re just getting started or if it’s been a while since you’ve completed your last deal, then this, it’s for you. It’s just for you, specifically for you, so grab this short and simple course at freerealestateinvestingcourse.com. As the domain name says, the course is free. It’s actually better than free, meaning I will pay you to complete the course. That’s how confident I am in it. If you’re willing to engage, if you’re willing to follow through and then share your experience with me and provide me with feedback and just let me interact with you and help you get to that first deal or that next deal, then I’m going to pay you to complete the course. Okay? It’s going to help me help you. It’s going to help me help more people in the future, and that just makes me feel good, so that’s what I’m out [inaudible 00:03:46] that’s what I’m doing this for. All the details of how this professional relationship between you and I works, how that all works, can be found at, you guessed it, freerealestateinvestingcourse.com.

All righty, so last week, we started to make our way up the six levels of real estate investing. Right? We’ve got this pyramid that we’re climbing up, and the base, the foundation, the starting point where most of the people reside and most of the people never get out of, and that’s the startup phase. We started there last week, and we went over a list of things, exactly what there is to do to exit this area, this startup phase, and move up to the next level, survival phase. We’ll finish each one of these levels with specific things to do to move up to the next phase, specific actions to take, but today, level two of the six levels of real estate investing, this is the survival phase.

Now, what is the survival phase? Well, survival phase typically means you’re making somewhere between five, ten thousand dollars a month in your real estate investing. You’ve graduated from working in your spare time. You’re now working as a part-time endeavor. It’s a little bit more than just an hour here, an hour there. It’s more a couple hours a day here and there, and maybe like a whole weekend day, something like that. You’re working part-time. This right here represents a very small portion of society. The last phase, the startup phase is the biggest portion of people that are looking into real estate. This one is, it gets smaller very quickly. This is where the action takers are. I mean, you’re closing deals, at least. Right? What’s happening here for you is, you’re starting to really gain clarity on what a deal looks like and how to find them.

A lot of that mystery of how you’re ever going to find this kind of real estate, that starts to disappear, and you start to recognize what a deal actually looks like to you. You’re starting to get the knack for running the numbers. Your skills are developing, and those skills are translating into the building of relationships, and your market knowledge, that’s increasing. The results are really tangible. You actually are making some money. You might even be making a little bit of extra money, got a little bit of discretionary cash now, and you’re noticing what is working for you, and you notice what you like to do, and you’re starting to notice what’s not working for you and what you don’t like to do. I mean, and at this point, most likely, you are on your own. I mean, you’re a one-man band. You’re a one-man operation, so to speak, but the confidence, it’s growing. Right?

There’s still some uncertainty. You don’t know it all yet, but you do know enough to make some extra cash on the side of your day job, and even though it’s working, you might be tempted to pinch yourself every once in a while, because you can’t believe it’s actually working. You can’t believe this is happening. You might have been thinking about this for a really long time, but you’ve followed through, and yeah, no, believe it. It’s happening. What you’re feeling is, you’ve got this feeling of, “Wow, this just might work,” and quitting your day job eventually starts to become a reality. It starts to seem more real, not just a dream anymore. You’re feeling more confident. You’re a little frustrated, though. You’re not moving as fast as you’d like. You’re moving, but you’d like to pick it up a little bit.

Things might not be as consistent as you want them to be, so you’re a little nervous there. You’ve got the little nerves in your system about consistency, “Will I really be able to make this happen and keep it going?” You’re feeling pretty busy, though, nonetheless. You’ve got a lot to do, and because you’re busy, you might be falling behind on your paperwork. You might be falling behind on the financials because you’re just trying to close the deals. You’re trying to make some money, and you’re falling behind there, and that’s of concern to you, and you’re actually maybe even a little bit worried about having enough money to do the marketing that you want to do that you’d like to do to scale and grow faster.

If you’re here, if you’re feeling any of this, and even if just, I don’t know, 70, 75% of everything I’ve gone through up to this point, if 75% of this is a match, then I just, I want to acknowledge you for the courage to get here. I want to acknowledge you for your follow-through, actually declaring what it is that you’re going to do, and then you actually did it. You followed through. I want to acknowledge you for your persistence. So many people give up before they get here, but you didn’t. You’re no longer just a dreamer. You’re an action taker. You’re among the few. You’re actually doing it, and you’ve made really, in my opinion, this is one of the toughest leaps there is to make as an entrepreneur is to get out of this startup phase, the tinkering phase, and to actually producing-results phase.

You’re not flourishing yet. You’re not financially independent yet. You’re not wealthy yet, but you’re getting results. You’re taking action, and you’re being rewarded for those actions, and you’re making some money. It’s one of the toughest ones, leaps to make, and you have done it, so congrats. You should pat yourself on the back. You should stop and just kind of lift your head up and like, “Wow. Okay. You know how many people don’t make it this far, but I did?” You rock. You got it? All right.

Now that you’re here, here’s where you’re vulnerable. Okay? You might be, you have a tendency probably to babysit your deals. Right? Because you’re scared to lose a deal. You’re playing maybe a little bit too much defense. Defense has its place in a game plan, but you might be, you’re a little bit afraid to lose, and you’re playing a little bit too much defense here, and because you’re playing that defense, because you’re babysitting these deals, you’re focused on these two or three opportunities, you’re falling behind on your lead generation, and that’s a real vulnerability, that we can get really, that can become a real danger to where it actually holds you and keeps you in the survival phase, the survival level of real estate investing.

Because of that, because your leads are lacking and you’ve got these other deals that you’re kind of babysitting, now you’re spending a little bit too much time with unmotivated sellers, and you’re spending some time trying to make them motivated, and it’s not working, and it gets discouraging, and it can be frustrating. Any time you have that discouragement or that frustration, that’s a place where you are vulnerable to like, “You know what? Maybe I bit off more than I can chew, and I don’t want to do this.” Right? You start, that’s where you’re vulnerable there. Because you’re slacking on your lead generation also, as you’re talking to these motivated and unmotivated sellers, you talk to these few deals, your negotiating position, it’s weaker than it should be. You’re afraid to lose the deal, so you might be compromising a little bit more. You might be compromising your deal standards a little bit more than you normally would or that you normally will in the future when you have a steady deal flow.

At this point, because of this is going on, it’s very easy to be distracted by the shiny objects in the interest of doing more and going faster, or plugging up holes that are there that you don’t know how to plug up, so be careful and don’t get distracted by the shiny objects. That’s a real vulnerability at this moment. You’re falling behind on paperwork, and if that, you fall behind on your paperwork too much for too long, it can be expensive and complicated to catch up on it down the road. All righty?

Those are some of your vulnerabilities in the survival phase, so here’s what there is to do. Okay? Here’s what there is to do. It’s time to if you’re not already, you got to get organized. Okay? If you don’t have a CRM in place, something to manage your contacts, something to manage your projects and something to manage your deals, something to automate your follow-up for those unmotivated sellers, let the systems do that. Let your CRM do that. That’s not a good use of your time to spend too much time with the unmotivated sellers. Once you’ve determined that they’re unmotivated, put them in your follow-up system. Have that automated and have your system follow up with them until they do become motivated later on.

Something else to do, you want to automate at least one lead generation method. If you don’t have at least one lead generation strategy automated, that’s what needs to happen here. That can be through the direct mail. It can be through PPC. It can be through a Facebook campaign. It could be hiring a neighborhood teenager to consistently put up your bandit signs. Something that just happens automatically without your involvement. All righty? You want to spend a lot more time on your marketing and your client generation. You’ve made some money. You understand that you don’t make any money unless the deals get closed, so you spend a lot more time there because you’re so concerned on making that money, but you got to spend more time on marketing, and client generation, and your lead generation.

You got to really focus on consistency, because this up and down, up and down with you got leads coming in, and then they’re not coming in, and you got leads coming in, you got not coming in. What coincides with that is your deals are closing, and then they’re not closing, then your deals are closing, and then they’re not closing, and you’re on this rollercoaster, this income rollercoaster, so really working on consistency is going to be vital here. It’s always vital. It’s always key, but to get to that next level, this is really what there is to do and to focus on probably the most in this phase.

You want to start documenting your processes. You want to start creating systems out of the processes. You want to identify what it is you don’t like to do or are not very good at. At this point, you probably even got a pretty good idea of the stuff you don’t like doing, and you got a pretty good idea of the stuff that you’re not very good at, and you got a good idea of what you are good at, but you want to, once you identify what it is that you don’t like to do or what you’re not very good at, then now you’re going to, you’ve documented your processes, you’ve created your systems, and now you’re going to, might be starting to look for a part-time assistant or a virtual assistant so you can hand that stuff off to them and have it get done.

There’s a lot of stuff in this business that we don’t like to do. Right? We all like different things, but everything has to be done for this to be a complete business for you and the stuff that you don’t like to do will kind of fall to the side, and what that’s going to do is going to produce inconsistent results for you. All right?

Once you’ve got all that together, it’s time to start looking for a part-time assistant, whether that’s in-house or virtually, and then you want to continue to educate yourself. Continue. That’s never going to stop. You’re going to stay with, I want you to stay with personal development and positive information. You got to really reinforce your mindset, reinforce your thoughts. If you haven’t already, it’s time to get your business entity. A lot of people think that’s the very first thing you guys, you should go do if you’re going to take this on as a business. I don’t recommend it, because I’d rather see you start making some money first to where it justifies actually the expense and the effort it takes to set up a business entity.

If you’re in this phase, now it’s time to get your business entity. If you don’t have it yet, you need your business checking account, and if you haven’t already, absolutely time to hire a bookkeeper. All righty? But really, it’s going to be, I want you to spend a lot of time on your marketing and your lead generation. I want you to work on consistency and then identify all those things you don’t like doing, or those things that are slacking, those things that you’re not very good at. You need to start documenting that process, creating systems out of that process and start looking for someone to delegate that stuff to. That can be an in-house person. It can be a family member. It could be a neighborhood friend or a neighborhood friend’s child, meaning teenager or kind of an intern-type relationship. Maybe someone’s going to college, they want to learn about what you’re doing, something like that, maybe make a few bucks. Or just hire a virtual assistant and have all that done for you as well. All right?

Some recommended resources for your entity, your tax planning, bookkeeping, maybe. Go to taxhacker.com. In fact, they just announced a brand new service that they’re providing, Tax Hacker Blueprint, getting the Tax Hacker Blueprint. That kind of takes all of this stuff and gets you all set up, gets everything taken care of for you. You can get that at taxhacker.com. Just when you go there, you’ll go ahead and opt-in for their free book over there and just say, “Hey, I want my Tax Hacker Blueprint,” and they’ll get you all set up. Okay?

Also, if you want to put more money towards marketing, you need some additional business funding, epicfastfunding.com. Great resource. We’ve talked about it here for years now on the show. They can give you up to 50,000, or at least 50,000 dollars, or you pay no fees up to 150,000. That’s at epicfastfunding.com if you’re looking for some money to kind of accelerate and grow your business. Then if you haven’t already, it’s a good time to join the Follow Through Crew, or to go faster, maybe reiace.com and has all those systems and a bunch of this stuff just done for you just like that. You can go to reiace.com for your business acceleration session over there. All righty?

Those are some of the things to do, some of the resources, and again, if you are here in this place, you are in the survival phase. I just, you rock. You’re amazing. You have made it. You are doing it. Now, it’s time to take these little skills, these little actions, and let’s start creating some consistency, start creating some systems out of it, because that’s what’s going to get you to the next phase. That’s where you’re going to get to stability, and that’s what we’re going to talk about next week. All righty?

All righty, so yeah, if you’d like to continue this journey with me, keep listening. Meet me back here next Monday for the stability phase, and if you’d like to go fast, you just want to go faster, go to reiace.com. Tell me a little bit about your business. I’ll get you all the details on how that works. All righty? God bless to your success. I’m Matt Theriault, living the dream.