How to Eliminate the Risk from Real Estate Investing By Matt Theriault, Epic Real Estate This is a transcript of Matt Theriault of Epic Real Estate s video on How to Eliminate the Risk from Real Estate Investing. He highlighted the use of a trilateral income strategy in real estate investing to get rid of the risks. Hey! This is Matt Theriault with Epic Real Estate. And today, I m going to show you how to virtually eliminate the risks from your Real Estate investment. Alrighty! So no risk real estate investing, sounds crazy, right? What is this? Real estate investing, that s a risky thing! That s what most people think because you probably know somebody who lost money in real estate, maybe a lot of money, or you know somebody who lost. Or many people that have lost money in real estate or maybe a little bit closer to home or maybe it s you, yourself, had experienced some losses in real estate. I get it. Well, if you cover 3 bases, then you can virtually eliminate your risks on real estate investing because most people that lose money in real estate, they ve lost it in one of 3 places or maybe a combination of those three. First place is a bad contractor. Yeah! A bad contractor can make or break your projects. Number two is a Property manager. A good or bad property manager, they can make or break your entire operations so do as much do diligence on your contractor and your property manager as you do on the properties themselves. It s that important. It s everything, really. Third place is just a bad strategy. And bad strategy, what I mean by that, is a strategy based on appreciation. Now, a lot of people win but a lot of people lose and the reason being is because when your investing strategy is appreciation based, it s a gamble. You are gambling. So you are really vulnerable to market conditions. So that strategy, it needs to be redirected from appreciation to an income strategy and let me show you what I mean. If you ve got a piece of paper, you might want to do this with me. Write Income at the top of the page. Here is your income strategy. INCOME 1 How to Eliminate the Risk From Real Estate Investing, provided by EpicWealthFund.com
So right there, you are already so far ahead of those, as far as risk goes, you are so far ahead of those who are betting on appreciation all by itself. Appreciation is great. It s the icing on the cake. It s not the cake itself. This is your cake right here (Pointing on INCOME ). Now, to go further and head yourself against risk, you need a tri-lateral income strategy and let me show you what I mean. On your piece of paper, go ahead and make three circles like this. (3 circles, positioned like a pyramid but overlapping in the center) INCOME And so, this represents your tri-lateral income strategy and you have a fast-paced strategy, you have a medium-paced strategy and you have a slow-strategy. 2 How to Eliminate the Risk From Real Estate Investing, provided by EpicWealthFund.com
Okay, so a fast-paced strategy, well, that might be a lending strategy that you have. It could be a transactional funding, could be hard-money lending, maybe it s quick wholesaling of properties, that s your fast strategy. Your mid-term strategy - that s going to be your single family residence buying wholes. Maybe your duplexes and four-plexes but really small buying whole projects. That s your medium strategy. And your slow strategy, what that is, that s your bigger developments. Maybe you are developing a community or developing a giant building or you ve got a large multi-family property that you re rehabbing and then you ve got to re-arrange the management and make some adjustments there and its performance and put some tenants in there. That is a long-term strategy. So really, what Fast means is today money, Medium means tomorrow money and slow is somewhere down the future. Okay? So in your real estate investing business and your strategy, we ll look at these three things. If you have just the medium and slow strategy, that s good. This is okay but what happens is you don t have the today money coming in and a lot of times, right in this area: That s where operations suffer because you don t have money to run the day to day business. So you are always waiting for the next money and you got this project that is coming down the road that s going to be your home run. But if you can t run the operations today, you might not ever get there. And I m speaking generally, of course, but this is typically the problems that businesses run this way, they re going to experience. 3 How to Eliminate the Risk From Real Estate Investing, provided by EpicWealthFund.com
So we have our fast and slow strategy and this is okay, nothing wrong with this (pointing to the area that Fast and Slow is sharing) This works for a lot of people. You ve got your quick lending strategy and you are making the money today and you are doing quick flips with wholesaling properties. You ve got some good money coming in on a daily basis but what happens is, a lot of times, this (Pointing to ) gets a lot sucked up for your operations and you never really get the capital or you have the manpower or the resources to apply to your long term strategies so this thing just gets pushed out, pushed out, pushed out. When you get your Fast strategy and your Medium strategy, this is really exciting. This is fun because you ve got money coming in today and you ve got money coming in tomorrow. You feel like you are really moving forward. You re feeling really profitable and you feel like prospering but what happens is this strategy right here is really vulnerable to market conditions. You don t have your long term security in place. 4 How to Eliminate the Risk From Real Estate Investing, provided by EpicWealthFund.com
So when you are setting-up your business, look at it this way and you operate right in here where you have a little bit of each, you virtually eliminated 99% of anything that can go wrong in real estate investing. You ve got a good property management, you ve got a good contractor and you ve got a tri-lateral income based strategy. Do that and it s really tough to lose money investing in real estate. I m Matt Theriault with Epic Real Estate this has been an absolute pleasure. What I want you to do though is I want you to go back to your business and take this information and compare the two. See what adjustments you can make to get yourself right in this sweet spot to where you are virtually eliminating the risk from your real estate investing. And if you are too busy and you don t have the time to do it or maybe you don t have the desire to do it, that s okay, I understand. It is a lot of work to put in place. I know because we did this with the Epic Wealth Fund. This is how our business operates. So if you are too busy or you don t have the desire to do it and you are an accredited investor, I invite you to take a look at ours, you may even jump back at ours or maybe come along for the ride with us. We ve got everything all in place. So go to EpicWealthFund.com, download the executive summary and then you ll be the judge for yourself. I ll see you next time. Click here to visit the Epic Wealth Fund Website and download the executive summary. 5 How to Eliminate the Risk From Real Estate Investing, provided by EpicWealthFund.com