Your Unfair Advantage | EW007

1x
0:00
00:22:37
Play

Do you know what it takes to create Epic Wealth?

The average person has a legitimate shot of realizing wealth buying & holding assets.

Buying & holding assets. That’s it. Pretty simple, right?

Do you know which asset the wealthy buy & hold to build and maintain their wealth?

Real Estate.

Epic Wealth Podcast EW007 episode number seven Unfair advantages for buy and hold investors Passive Real Estate investing is the path get more deals to financial freedom building epic wealth through turnkey cash flow real estate EW006 Epic Wealth Podcast episode6 build epic wealth through cash flow savvy real estate investments financial freedom podcast show podcasting podcast show advantage epic wealthPut yourself in position to build Epic Wealth through passive income cash flow investments. Discover the power within you to leverage your resources. Learn to raise capital through creative financing, attract investment opportunity, and structure deals that will provide you infinite return on investment. Everything you need to build your investment portfolio is available here. Consider the unfair advantage that is the Epic Wealth podcast and develop the skills you need to get rich permanently.

Now that You are Thinking Wealthy:

  • Where to invest for the best opportunity to build wealth
  • What to do if you don’t live near real estate investment opportunities
  • How to control a property from distance
  • Ways to keep your advantage with trusted guidance
  • Why building and nurturing relationships can provide great leverage
  • Why buying & holding assets is key to long-term wealth buidling
  • How to leverage debt to build wealth before paying down debt with income
  • Five skills to develop for certain success in real estate
  • More advantages for you to leverage on your way to Epic Wealth

Read the Transcript:

Click to Expand

Matt Theriault: Today's episode is sponsored by Creditbump, a new fast and simple way to get up to $150,000 of revolving lines of credit. Use the funds for anything you need: startup cost for your business, capital expenses, product development, inventory, marketing, promotion, creative real estate acquisitions and strategies, anything your business needs. They have a 60-second online application. It's a soft inquiry, meaning the application process will not impact your credit score in any way. There are no upfront fees, interest rates are as low as 0% for the first 12 to 18 months. If you opt in for their credit consulting, you'll learn how to extend your 0% interest rates far and beyond that, build corporate credit, and so much more. The approval is based on your credit score and your stated income. If you're pre-approved and you don't receive at least $50,000 in funding, you don't pay a cent in fees. Through their service, I've helped members of my Epic community receive more than $13 million of funding in the last six months. They've got top-notch customer service, Creditbump has an A+ rating with the Better Business Bureau. In short, you're in great hands and you've got nothing to lose. Go to creditbump.com, creditbump.com. That's creditbump.com.

Narrator: This is Theriault Media. It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so. You don’t have a money problem. You have an idea problem. Welcome to the final frontier where the average person has a legitimate shot at creating epic wealth. Your host, Matt Theriault.

Matt: Yes! Hello, and welcome. Welcome to the Creating Epic Wealth Show, the revolutionary new money show disguised as a real estate show, as real estate is the final frontier where the average person has a legitimate shot at creating epic wealth.

I mean you really just don’t have a chance at any sort of financial freedom unless you incorporate real estate into your financial plan. If you just don’t have the time to do it nor the desire to take on all of the heavy lifting, then this is just the show for you. I’m glad you found us.
Last episode, we discussed the mindset of the wealthy, how they think about money and that their focus is on purchasing assets, cash flowing assets specifically, with real estate being the most simple straightforward cash flowing asset the average person can use to create epic wealth.

Now that you have this shift in mindset, now that you are thinking wealthy, how does it feel by the way – thinking wealthy? Now that you are thinking wealthy where is the best market to buy this income producing investment grade real estate? Where do you get? Well, conventional wisdom will have you think – this is a common advice by the way, very common, too common – that if you can’t drive to it, don’t buy it. You hear that all the time. If you can’t drive to it, don’t buy it. That’s terrible advice. It’s so prevalent. It’s a tragedy that that’s the advice that’s given out there.

That’s terrible advice because what do you do if you don’t live within driving distance of income producing real estate? What do you do? Do you just not invest? You remove it as an option for you entirely just because you can’t drive to it? Or do you move your family to a market where you can find such real estate? I mean neither of those are ideal solutions, not to mention terribly inconvenient. When people give this advice, even if it’s advice backed by experience, their personal experience or they know somebody who had a bad situation with an investment that they could not drive to, it’s not necessarily if you can’t drive to it don’t buy it. That’s not what they are saying. What they really mean to say is if you can’t control it don’t buy it – big difference. Just because you can drive to it doesn’t mean you can control it. Those don’t work hand and hand, right?

The performance of a piece of real estate has nothing to do with its distance from your residence but rather the control you wield over it. What really matters in terms of control is first, what level of understanding do you really have about exactly what that asset does to make money? The more you understand this, the less mystery there is in determining whether you are making a good investment or not. I mean when it comes to how we make money with rental property I have a complete understanding and so should you of exactly how it’s done. We simply provide a place to live to a hardworking family or individual who wants to rent that place from us. We get to know ahead of time what kind of rent that’s going to be. Period. That’s it. That’s very easy to understand. Now, of course there are details to acquiring and managing a profitable rental property but I love how simple the business is at its core. That understanding of the process and – that’s my first huge mental control that gives me confidence to invest, to invest long distance.

Now, let’s go back to that 401(k) example that we discussed the last week because there is another huge control that I have versus a traditional investment that gives me a lot of confidence, which is the fact that I call the shots. I’m the boss! If I own stock in let’s say Coca-Cola and I see that they are running a commercial with this celebrity I don’t like, can I pick up the phone and tell Coca-Cola to change that? To fire that celebrity? To hire my favorite celebrity? Absolutely, not.

Far more seriously however, what if they do something that loses me money? Can I do anything about it except simply just sell the stock? No. No. Nothing. Nothing at all. Now, compare this with the control that I have in my long distance real estate. I mean if I have questions about my tenant, I have questions about the rent, possible repairs, the neighborhood, anything like that, I can pick up the phone and my property manager will talk to me and answer my questions. My manager can help me get all of the information I need to make a decision about anything related to my property but regardless of his opinion I am still in control. I call the shots and I like that. My property manager then becomes a trusted advisor in the same way a golf caddy is a trusted advisor, but you ultimately hold and swing the club. In fact, the manager himself is a replaceable piece of the puzzle if for whatever reason you want to hire someone new or heck you can even trade out the property itself if a better opportunity arises. In the end, I like the balance of ultimately being in control by having trusted advisors to guide me. It’s a whole lot like having a great doctor. You are ultimately in charge of what happens to you, you actually pay the doctor salary, but if you built trust in that doctor you can be in control and relax knowing that you are in good hands all at the same time.

This leads me to the biggest aspect of what makes me comfortable investing long distance. That is leveraging myself through the relationships I’ve built with great local teams. I could ask all the time why don’t you own properties over here? Why don’t you own properties in that town or that city, or that county, or that state? I get asked that all the time and I always tell them it’s because I just don’t know anyone there yet. That’s right. Notice I didn’t say I can’t find any good deal there, or I didn’t say that the economy is terrible or that the jobs are all moving out of that area. I didn’t say anything like that. Certainly I paid attention to that type of stuff but ultimately it’s because I don’t have a trusted relationship there yet. These relationships of trust, these are everything. Real estate absolutely holds the power to create financial freedom but if you can never stop worrying about the team you’re using to help create this income then that’s not freedom. Building relationships – that comes first. It takes time and it takes some effort.

The great thing about relationships is that you can either build them, you can take the time to do that or you can borrow them. In fact, borrowing relationships is something we do all the time in life whether it’s asking a friend if they know a good mechanic or if it’s hiring the same caterers your in-laws used that Christmas, or if it’s using the team of a successful real estate investor to go to work for you. Borrowing someone’s relationships is a double benefit to me because now I have two people in the mix who both stand behind that connection. They both want to see the best possible outcome happen. I think I mentioned last week but in case I didn’t, I actually think there are some great advantages to investing in longer distance as well. It’s not just can you or can you make it work, I think there’s some advantages to it as well. You see very few people will learn how to properly leverage a team, how to manage a team. Very few people will actually let go and learn how to work through other people’s eyes and other people’s hands, and other people’s expertise, but if you can this is the ultimate leverage. Even if I could invest for cashflow in my own backyard, I still wouldn’t be doing the work myself. I would still leverage the eyes, the hands and expertise of others. If you can do that, then you get to follow opportunity anywhere and invest where it makes the most sense for you where you have the highest return and the most security. To me, that’s control, that’s safety.

Otherwise, you have to just work with what’s nearby. If it’s a bad deal that just happens to be nearby, the nearby part doesn’t remedy the bad deal part. That’s not safety. That’s not control. Investing long distance allows you to follow the best deals, invest increased control and maximize growth. Maximize your ROI, maximize your monthly cash flow accelerating your journey to financial freedom’s doorstep, you know leveraging yourself through teams you’ll have another final advantage in investing long distance which is having very little competition chasing you down as you build a real estate business the right way. Most people, they simply cannot or will not build or tap into a trusted team so they are limited by their own time, their own skills and their comfort zones. These people insist on doing everything themselves and complain to their friends about the calls to fix the toilet they got in the middle of the night.

Unfortunately, this is what most people do. They own a property but they don’t run a business, and it is a business. It’s your business. Your financial freedom business, your life business. It should be you in charge of your life. Understand this and please let it sink in: my job is to manage teams not manage properties. That is why I am financially free. It’s the quickest access to your freedom as well. Investing long distance has forced me into this habit of managing teams not properties from day one. Hundreds of deals later, well here I am. Whether you leverage my team at cash flow savvy of which you are welcome to do or someone else’s team or take the time to build your own, it’s through you managing this team where your freedom exists. It doesn’t matter where the property is. If you want to learn more about our team go to cashflowsavvy.com and download our investor package. cashflowsavvy.com. We’ll be back with more and how having limited funds to invest in real estate is actually your unfair advantage. We are going to discuss that right after this.

Narrator: If opening up your financial statement each month is about as exciting as watching paint dry, [snoring] the Epic Wealth Fund may be the next investment opportunity for you. The Epic Wealth Fund invest in distressed real estate and shares the profits with its shareholders. If you're an accredited investor who has already enjoyed success elsewhere in their business or investing life and you're seeking a broader exposure to real estate in your portfolio on a passive basis, the Epic Wealth Fund's executive summary is available for your review. Go to epicwealthfund.com to review the fund's executive summary, epicwealthfund.com.

Real estate investments involve a high degree of risk. Residential income and returns may vary and are not guaranteed. Past performance is no indication of future performance. Nothing herein shall be construed as investment, tax, legal, or accounting advice.

Narrator: Now, back to creating your Epic Wealth.

Matt: Whether you believe it or not, you do not need money to invest in real estate. It’s true. Most of my do-it-yourself education at the Epic Pro Academy is directed towards investing in real estate with little to no money and a terrible credit score. That’s how the education shows you how to operate in that fashion if that happens to be a situation. I’ve been asked multiple times and this question seems to be hitting me more and more frequently, the question being “Matt, what should I do if I do have money and I’ve got a good credit score? How should I invest then?” Well, my teachings aren’t only directed at people with no money. No, that’s not who it’s for, although it helps those people significantly and make it help them in other ways that they really can’t anywhere else. The teachings though, they are for everyone. Rather, what I’m trying to impress upon you is the value of using your brain to be a creative thinker rather than a conventional one. Here’s the thing, the more of your own money you use, the lower your returns get. I got used to infinite returns. That’s what works for me. It’s what continues to build my business today so that’s what I teach. While I’m not opposed to using my own money, I just don’t do it unless I have to. For those of you with an abundance of money in credit, I’ll tell you what I do, I’ll go ahead and I’ll tell you what I do, I’ll answer the question but then I’m still going to follow it up with why you should first learn to invest with none of your own money and how that can actually create an unfair advantage for yourself.

Scenario number one: Mr. and Mrs. Moneybags if this is you, this one is for you. I will hold more and flip less. If I was Mr. Moneybags I will hold more properties and flip less of them because flipping is really only useful if you need to generate large sums of cash. If you need cash to keep your business running or if you need cash to keep your business growing then okay, that’s where flipping comes in really handy. It’s stressful to flip properties. No one is going to achieve financial freedom from flipping houses. You might get rich flipping houses but you are not going to get wealthy. You get wealthy holding them. Because flipping houses, it’s another job. It’s a means to an end. If you don’t have to flip properties to create cash before being able to buy for cash flow, then why do it? I mean unless you love it of course. You’ll get no argument from me if that’s what you love to do but why do it? I’d skip that part. I’d skip that part entirely and invest for cash flow, using as much as my credit as possible. Then send the credit because I would want to take full advantage of today’s long term low interest loans. I’d look for investments specifically that pay a higher ROI by at least a couple of points greater than what my money is currently receiving. For example, if my money in the stock market is averaging a 5% return I’d probably place my minimum deal standards for new investments at 7-8%. That’s not a rule or anything, that’s just what I would do.

Then, as the average return in my portfolio grew to say 7-8%, I’d increase my minimum deal standard to say 10-12%. I’ll just kind of keep moving forward in that fashion. A solid system for achieving epic wealth is to continually exchange low yielding assets for higher yielding ones. Just look for the low yielding ones, maybe liquidate that and then go and find another investment that produces more and just keep exchanging that and working your way up. Anyway, I keep buying in this fashion. And I would refinance every chance I got so I could use the equity from that property to purchase more cash flowing property. Then, once I achieved my desired monthly cash flow, I would take the collective income from my investments and commit that to paying down the debt of my highest grossing properties. I just picked the one that paid the highest gross rent and I focused on paying that one down. Then, I just knock those down one at a time and then moving down to the highest grossing one down to the next one. The rule of thumb here being leveraged as much debt as possible to build your wealth because that’s the fastest way to do it, then once you achieved your desired wealth, now pay down the debt to preserve your wealth. Got it?

When you’re building wealth, even if you have some money to begin with I’d still use as little of your own money as possible because it’s my adamant belief that everyone should force themselves to invest in real estate with no money. Here’s why. First reason as I just mentioned is it builds your wealth a whole lot faster this way. The second reason, by forcing yourself to be creative you will develop skills that you otherwise would not. That includes not getting into bad deals because you have the ability to bail yourself out. You see, if you got the skills that you get by having money, those costs you right, because you throw money at the problem and it costs you. The skills you develop by investing with no money, those skills are going to pay you. They are going to give you an unfair advantage in the long term. In the nutshell, forcing yourself to invest using as little of your own money as possible develops better investing skills. You become a better investor this way.

Scenario number two: Oliver Twist. You’ve got empty pockets. Well, there are five skills that if you develop them will make you an unstoppable force in the real estate world. By having empty pockets, you are forced to develop these skills. They are: One, generating free leads. Sure you can pay the big bucks for a gargantuan marketing campaigns but in all honesty the best leads are the free leads. When you don’t have a huge marketing budget, you get really good at generating leads. My best deals have all come from free leads. If you don’t, you go hungry.

People skills. If you have terrible people skills you’ll be a terrible real estate investor. When you are forced to do a deal with no money your people skills they develop really fast at space shuttle speeds. If they don’t, again, you go hungry, you starve.

Three. Negotiating skills. If you have to buy loan after you create a profit, if that’s the objective of an investor, you’ve got to buy loan after you create a profit. Chances are you are going to need to negotiate. It’s negotiation that’s going to get you to that place where you are buying a loan of. When you don’t have a deluxe path of bank account at your back you have to get creative. Your negotiation skills will also keep you from getting into bad deals, and those develop automatically. Because if they don’t, guess what? You starve.

Number four, the ability to raise capital. Robert Kiyosaki has said “The number one skill of an investor in today’s economy is their ability to raise capital.” If you don’t have money, you are going to have to get it from somewhere. If you do have money, you will run out. Again, you are going to have to get some more from somewhere which leads me to the all important matter of skills – your ability to structure a deal. If you want longevity in this business and the power to actualize real wealth, you have to know how to create a really structured deals. Concepts like subject 2 and seller financing or optioning, those don’t even enter the consciousness of investors who have never had to get creative. When you develop and incorporate these skills into investing, returns of 10%, 15%, 25% that you can create with money, those returns could easily turn into infinite returns without money. Infinite return is not a figure of speech, those are real. It’s not theory. It’s not a myth. They are real. If you structure a deal where you don’t put a dime into it but it still cash flows $200 a month, guess what? Your return on investment is infinite. You can’t calculate that. That’s real. People who have money never experience that. I’ll tell you right now. In this game you will outperform someone with money who doesn’t have these skills every time. If you do have money, I challenge you to conduct your investing without it. Make it a game. Make it fun. Pretend. Let’s just make believe you don’t have any and let’s see what happens. I think you’re going to be shocked at the outcome. I mean it might be a struggle in the beginning as all new learning there’s always are, but sweet child of mine the power you’ll acquire will set you up for the long run in ways you cannot even begin to imagine.

Speaking of a long run, let’s go ahead and expand on this subject. The subject of getting rich. Let’s talk about getting rich permanently. We’ll do that right after this.

Narrator: If waiting for your investments to grow feels like waiting for paint to dry, there’s a powerful secret your financial planner doesn’t want you to know. You can accelerate your investment’s growth by 2, 3 or even 4 times. That’s bad news for Wall Street but great news for you. We are cash flow savvy. We’d like to offer you free information that will show you how to take control of your investments, and double or triple or even quadruple their returns. It’s yours for free. For the secret your financial planner doesn’t want you to know, go to cashflowsavvy.com. That’s cashflowsavvy.com.

Mark: That’s it for today. We’ll pick up from where we left off right here next week. See you then.

Recommended Resources:

 
1x
0:00
00:22:37
  • 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.

Thanks!

Thank you so much for joining us on this episode of the Creating Epic Wealth podcast!  Please subscribe to the podcast so that you will get instant access to our new episodes.

If you found this podcast helpful, please take a few minutes to leave us a positive review in iTunes.  Your reviews help to improve our search rankings so that we can spread the love.  Thank you!