Awareness is vital because what you don’t know can rob you of everything you’re trying so hard to create and grow. Today Matt shines a light on the most significant roadblock facing new investors and what they can do to blast through it.
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(Voice Over): Epic Real Estate Investing Podcast Episode 6. You’re about to meet a man that can show you how he took control of his life and financial future and how you can do the same. He’s never been on TV. He’s not a millionaire. He doesn’t know Donald Trump. He is a full time real estate investor, newly discovered author, and family man. He does not report to a boss.
He creates his own schedule and takes his family on a few vacations every year. He got started investing in real estate with almost no money and a really crummy credit score. And he’s going to show you exactly how he did it and how he continues to do it. You will have to work.
You will have to be responsible. However, laying the beach, sipping fruity drinks is a reasonable goal. Without further delay, your guru. Sorry. Your guide to a better life, the real estate investor, Matt Theriault.
Matt Theriault: Hello. And greetings from The Epic Real Estate Investing Podcast. The podcast that will show you how to create wealth through conventional and creative real estate investing so you’ll have the option to realistically retire in the next 10 years or less. And enjoy the good life while you’re still young enough to do so.
My name is Matt Theriault, author, full time real estate investor and family man. If this is your first time listening to the show. You want to do two things. One, go back and listen to episode one. Episode one is going to give you the gist of what the show is about and why it’s here.
I mean everything that we discussed is going to make a lot more sense if you do that. And two, download the free real estate investing course on how to deals, no money required. And you can get at freerealestateinvesitngcourse.com.
It’s a step-by-step course of which I reveal everything that I do, everything that I say, everything that I use including the documents and contracts. Everything that you are going to need to invest in real estate using no money or credit. And that’s yours for free at freerealestateinvestingcourse.com.[00:02:05]
Okay so up until last episode, we haven’t got into real nuts and bolts yet. But we will. We will cover a lot of how to on this podcast. We will discuss multiple strategies as well. Both acquisition and strategies.
Some conventional but mostly creative. You know to me, that’s the fun part when you are going to acquire real estate using more terms and less money. I mean real estate investing gets really, really, really fun when you start to figure out all the different ways that a deal can be put together.
And it makes good stories too but regardless of what your real estate investing strategy will ultimately be. All of the strategies have four steps in common. Step one; you have to find the deal. Step two, you have to analyse the deal. Step three; you have to secure the deal. You have to put under contract. Step four; you have to find the money and close.
It’s very simple and it’s very straightforward. However, most investors are that they have a tendency to let one thing get in the way. The one thing that messes everything else up. It’s often the biggest obstacles for investors.
One that literally stops them dead in their tracks. They focus on step four. Find the money and close. They focus on it with such intensity and regularity that they never actually take the first three steps or even step one for that matter.
They never even attempt to find the deal because they’re waiting for their funding source to appear. They don’t have an answer to the money question. I mean they’re so concerned that they don’t have the money or they won’t be able to find the money and close their deal that they never take that first step.
They never look for deal. Well, they may look for a deal but they have no intent of taking any action until they know where they’ll get the money to buy the property. They’ll say things like, if I only had the money or if I can only find a private investor.
I mean I could really take charge of this market.” I hear those types of things being said all the time. What they don’t understand is that the money is much easier to find. If they only take the first three steps.
If they actually go out and find the deal. If they actually go out and analyse the deal. And if they actually go out and put the property under contract if they go out and secure the deal. If they would just take those first three steps, they could take charge of their market.
You know, there is a really good reason that we are on episode six of this podcast. And just the last episode did we actually get into some how tos. How to generate leads and find deals. And here’s why.
Although I say real estate investing ain’t easy. I say that a lot. I know I do. That’s not really the truth. It is easy. I mean all I have to do is to just go out and find the deal, open escrow, and close escrow. It’s that easy. And I can show you how to do all of that in a matter of minutes.
I mean I can show how to write that yellow letter in thirty seconds. I can show you how to place an ad on Craigslist probably even faster. What makes real estate investing difficult is the reason why you won’t get up everyday and do it.
It’s your thinking. It’s your mindset. It’s your fears that make real estate investing difficult. That’s why I’ve touched so much on mindset up to this point. I’ve talked so much about your thinking. I’ve talked so much about personal development.
You see, I can teach you how to knock on a predisclosure door on about 15 seconds. But it can take weeks, months, or even years for your fears to disappear. If they ever do, so you will actually go out and knock on that door. And do it again and again and again so that you actually get results. The reason why most won’t do that has nothing to do with them not knowing how.
It has everything to do with their thinking. Has everything with their mindset and with their fears. It’s their fears that stop them from doing what they know. You know, after teaching real estate investing for a while and trying different approaches getting people get out of their own way. I discovered a significant area where the breakdown of communication has been.
I discovered they actually didn’t understand their rights as a buyer. They didn’t understand how they’re protected by the purchase agreement. They didn’t understand how they could structure their deals so that they could virtually eliminate their risks and liabilities in the deal.
I mean their fear was disguised as basically unfamiliarity with the purchase agreement. And because they’re unfamiliar with the purchase agreement, they lack a strategy or a complete plan. And when you don’t have a plan, I mean it’s no wonder so few experience any success in real estate investing.
Most people are literally paralysed by the unknown so I took those four basic steps that I mentioned in the being. I created an acronym for them that incorporate not only those four steps but a system and a strategy as well. It’s an overall approach to doing deals that can eliminate a great deal of the fear that stops most investors.
It’s an overall approach to doing deals of which I call the Epic Approach. The E stands for evaluate and decide. What that means is to conduct a preliminary evaluation of the deal, to determine an initial opinion of value, initial opinion of value, and to decide based off of that initial opinion, decide if there’s potentially a deal there to be had or not.
That’s it for the first step. This is not to time to conduct your thorough do diligence. Just determine an initial opinion or value of the deal then decide whether there’s potential for you to make some money or not.
If there’s not, move on to the next deal. Don’t waste your time there. Don’t go into a deep property and now trying to squeeze a few nickels and dimes because you want that deal to happen. Either there’s a deal there or there is not.
Don’t be emotionally attached. Don’t waste your time there if there is no potential to make some decent money there. It’s not worth of your time. There are plenty of deals out there. If there is some potential then move on to the next step.
The P in our Epic Approach stands for present and gets consent. Now if you have established that there is a potential to make some money. Write up an offer and present it. Simple. I show you exactly how simple it is to do that inside the free real estate investing course on how to do deals no money required.
And we will discuss some more but for now I want you to understand the intent. The intent is not to execute this deal right now. The intent is to get the property under contract. Once you’re under contract with the seller you have control and a lot of investor particularly new investors don’t understand the amount of control that they have.
It’s like this. Imagine you have a painting that you want to put up for auction. You have your choice of two auction houses. Auction house A has been in business for several years and anytime they have an auction. They have a minimum of a thousand of people in the auction house to place bids.
Very successful auction house, auction house A. Now auction house B, they just open up for business. In fact, this is going to be their very first auction. They only have one person on their mailing list. So they can promise you that one person to your auction.
So as the seller of your painting, which auction house would you want to represent your painting? Auction house A, right? They’re going to have at least a thousand people in attendance to bid on your painting. And when you have those types of numbers, you have competition. And when there’ is competition, the price of your painting is going to be driven up.
Getting you a great price for your painting so you are definitely go Auction House A as the seller of the painting but what if you’re the buyer of the painting? Which auction house would you hope got the gig of selling your painting? Well as a buyer, you would want to be in auction house B, right?
I mean there is no competition there. You’re likely to be the only person in the auction house. And if you are, you can essentially name your price for the painting and get a great deal.
So what does this have to do with getting a property under contract? Well you see as the buyer, when that property isn’t under contract. You are on auction house A where all the competition is. I mean there’s competition everywhere and the competition is going to drive up that price.
So as a buyer, you’re not going to get a good deal in auction house A. However, once you put the property under contract. You just move from auction house A to auction house B. You’ve essentially eliminated your competition.
You’ve locked them out. The seller can’t enter a contract with anyone else while they’re in contract with you. And since they can’t, now is when you can move to the next step.
The I in our Epic approach stand for investigate and negotiate. Investigate meaning more frequently referred to as “do diligence” meaning investigate the property, investigate it physically, investigate its title, investigate the neighbourhood, investigate in greater detail the market conditions. And based on what you have found, you can go back for second round of negotiating.
Yes. Just because you are under contract doesn’t mean you can’t negotiate for concessions. You can still negotiate and what’s so great about this round of negotiation is you’re the only one in the auction house. No competition from other buyers.
I’ll show you exactly how to do that but I want you to really get intent here. The intent here is to get the property under contract so that you can now take your time during your do diligence without outside pressure, without outside competition.
You see, if you conducted all this intensive do diligence in the beginning. Someone could sneak and stole the property right from you while you are still trying to figure it out. That’s why you want to put it under contract.
You can conduct your do diligence; you can take your time without the outside pressure or distractions. The seller can’t back out. The seller has to deal with you because you’re in contract. You however can back out anytime that you want. That’s where the fear of the unknown comes in or that’s where unknown creates fear I should say.
Where most investors don’t realize that they have that type of power. I mean, if you have the CYA clause in your agreement of which reads, this contract is contingent upon the buyer having the right to 1. Inspect all aspects of the property that would directly or indirectly affect its value and 2. Engage a professional inspector or inspectors to determine a structure and condition of the house. The inspection reports must be satisfactory to buyer. Or all deposit money will be immediately refunded and all contract obligations considered null and void.
The inspections shall be conducted and the contingency concluded within 14 working days from the date of acceptance of this contract. Any removal of contingencies must be in writing.
That clause right there, that CYI clause pretty much says you can cancel this contract for any reason that you want, whenever you want inside those 14 days. I mean you can back at anytime because of that clause. And you don’t to rewind and write that down. I included that in “How to Do Deals, No Money Required.” There’s a document there of which you can just simply copy and paste it in your contracts.
But with this clause in place you are never at risk. And we will cover that more in the very near future but once you have completed your investigation and you’ve re-negotiated the final price and terms.
You can then now move on to the C of the Epic acronym. Coming with the cash and close the deal. But don’t worry about where you are going to find the cash right now. I know easy for me to say. I guess it is but it’s easy for you to say too as I will show you how to find it.
I promise that I won’t leave you hanging. But that is the entire point of this episode today. Don’t worry about it. Just go out there and find some deals. Go out there and analyse the deals. And start putting those deals under contract.
I mean if you have your CYI clause in place, you have nothing to lose and you have everything to gain. Under all these steps one at a time, travel those first 200 feet. And when you get there, you will see the next 200 feet.
Have some faith. I’ve been. I’ve done that. I wouldn’t stir you wrong and if this just isn’t clicking for you. Let me ask you, how’s the alternative working?
I’ll walk you through each step. Just keep moving at the speed of instruction. It’s that simple. And you’ll see how the money you may or may not need, that’s a hint by the way.
You might now even need any money in the end. How that money will almost magically take care of itself? And if you’re sceptical on how this is going to play out. Good. Scepticism is the beginning of faith. And faith makes all things possible.
It’s your faith that will eventually turn it into belief. And belief is a force multiplier. I’m going to take you as far as you can see. And when you get there. You will see further. So next episode will start working out our way through the Epic Approach in detail.
And get into the details of how to. We will take it from the top and discuss the E of the Epic Approach and discuss in great detail in how to evaluate and decide, how to tell whether you have a good deal or not, and how to tell if you got that good deal and do it in a matter of minutes.
It is in the evaluation where fortunes are made or lost. Until next time. And as a very wise man once said, for those who believe no proof is necessary. For those who don’t believe, no proof is possible. To your success, I am Matt Theriault. Living the dream.
(Voice Over): Thank you for spending this time with Matt Theriault and the Epic Real Estate Investing podcast. When you have time, stop by iTunes to leave your comments and let us know what you think of this show.
And if you haven’t done so already, get started investing today by visiting FreeRealEstateInvestingCourse.com to access Matt’s free course on how to deals, no money required. Until next time. To your success, to your success, to your success.