July 31, 2023 • 9 mins
Ever wondered what it takes to become the person that a private money lender can't wait to lend money to? Get ready to redefine your journey to success with me as we traverse the enlightening world of real estate investing. I share how I used real estate investing as a stepping stone for personal development, transforming into a more reliable and dependable individual, and becoming something new.
We'll explore how the real estate community, coupled with a healthy thirst for knowledge in business, personal development, and social sciences, can open the floodgates to success. You'll hear about my experiences and how I managed to set myself for success by asking the right questions.
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Website: SecondMix.net
Email Me: matt@secondmix.net
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Well, this episode is a little bit different than
normal.
I'm diving into something Idon't usually talk about, which
is real estate, investing andborrowing private money to
purchase houses.
But buried not too deeply inthis material is a huge personal
development lesson that's goingto be beneficial to anyone who
has any goal.
So listen for the gems, even ifyou're not into real estate,
(00:22):
because the lesson could changeyour life like it did my own.
I've seen so many so-calledgurus on social media lately
teaching people how to get intoreal estate by finding a private
lender and all the stepsinvolved, how easy it is to use
private money to buy real estate.
I know a lot of viewers getexcited, thinking if they could
just find a private lender andmaybe, maybe someone, somebody
(00:42):
might lend them money.
And as briefly as I can, here'sthe system.
If I see a property that I wantto flip or rent instead of
going through a bank, I get aprivate lender to send me the
money at a really high interestrate.
I get the house, fix it up andrent it.
Then I refinance the propertywith a traditional bank and use
the refinance money to pay offthe private lender.
(01:04):
Now I own the house with amarket interest rate and my
lender is paid off and mademoney off.
Me and my tenants are paying mynew mortgage.
That's pretty cool, right, butthese hype videos and I call
them hype videos because theperson who created the video
heard about this great system,how it works, and it is pretty
(01:24):
cool.
But when they talk about thesystem, they get to sound really
smart to a bunch of people whohaven't heard about the system.
So the videos get a lot ofviews and they get even more
popular.
What I haven't heard in all ofthese hype videos one major
component that's missing is thisIn order for the system to work
, you have to become somethingnew.
(01:46):
You have to prove to alegitimate private lender that
you are the kind of person worthlending money to.
So unless the deal isabsolutely spectacular, amazing,
almost risk free, the privatelender isn't going to help you
out if you're not the type ofperson they want to lend to,
even if it's backed by a house.
Now they might say well, if youdefault on my loan and I end up
(02:09):
with this house, I can stillprobably make twenty or thirty
thousand dollars from flippingit, or more.
In that case, they might agreeto the loan just in case they
have to take the house back fromyou.
But if you default, your timewith private lenders is pretty
much over.
You have to become a dependable, reliable person, someone they
want to lend money to.
(02:29):
My private lenders love mebecause they're making money off
me.
I provide value to them.
They're renting me their money.
I'm renting fifty thousanddollars for five hundred bucks a
month and then I pay back allthat money.
It's like I'm saying, hey, canI rent your hundred thousand
dollars for a thousand dollars amonth?
And they agree.
And I make money because mytenants cover that cost and the
(02:50):
lenders make money because Imake sure that the payments get
to them.
I don't default on my loans.
I'll do whatever it takes toensure my private lenders get
their interest first.
Then I do whatever it takes tomake sure the properties are
ready to refinance, whether Ihave to bring money to the
closing table or not to ensurethat my private lenders get paid
off.
(03:12):
Now that I've had some closedeals, my primary lenders and my
primary lender is alwayslooking for more.
He asked me have you foundanything yet?
He wants to know.
He wants me out there lookingfor houses borrowing money from
him.
Both of us are making money.
It's a pretty abundant cycle,but it's because I became the
type of person that he trusts,and that happened four years ago
.
No one four years ago wouldhave just given me a hundred
(03:37):
thousand dollars and said hereyou go, take it, use it and make
us both some money.
So what did I do to change?
Well, I didn't spend my timewatching like 22 year old real
estate gurus on no offense to 22year olds, right but I didn't
spend my time watching people onTikTok videos.
I started in February 2019.
(03:59):
I started taking seminars,courses and classes.
I read about a hundred books ayear for four years on personal
development, business, sales,marketing, social science,
behavior, economics, psychologyand more.
At this point, I was stilldiscovering my path.
I hadn't chosen real estate yet.
I was still discovering what Iwanted to be doing.
You can hear more about it inthe episode called the Hike.
(04:22):
That Changed my Life.
Once I decided to get into realestate, I got involved in the
real estate community.
I started meeting the localprivate lenders, joined my
apartment association locally.
I went to a class calledLandlord 101 that the Apartment
Association holds and got acertificate in Landlord 101.
I took a course on how to buyyour first rental property in 90
(04:43):
days and I joined a mastermindof real estate investors.
All of that that I did helpedme set up my system and gave me
all the documents I needed torun my business Before I ever
owned a property.
I set up an LLC, got myoperating account set up as well
as the escrow account fortenant security deposits and, as
my mentor said, you get yourbucket ready and the properties
(05:05):
will fall into it.
So I got my bucket ready.
I took all these steps, thenstarted asking questions at the
meetings.
And here's the thing they wereinformed questions.
I'd been reading, I'd beenstudying, I'd been doing the
work, just figuring out exactlyhow I'm going to run this
business.
So when I asked questions, theyknew kind of what I already
(05:26):
knew and they could see thatthese questions were coming from
a place of some knowledge andsome effort in learning for
myself.
So the private lenders who werethere at these meetings
actually said to my mentor oh,matt is a solid, up and coming
individual in the real estateworld.
They knew that before I evenowned my first property.
(05:47):
This was only possible because Ibecame the person that I put in
the time I put in the effort,and I'm not trying to brag for
real.
I just want to make the pointthat it's possible to design and
live an amazing life, and I amthe worst of all sinners, to
quote the Bible.
So if I can do it for real,anyone can do it.
(06:09):
In February 2019, I couldn'timagine making a call casually
asking for $250,000.
And now I'd make those callsevery day if I were finding cash
flowing properties.
That's a nice dream, but but Iwould make those calls every
single day.
Life is different because Ibecame something different than
(06:30):
I was four years ago.
But real estate's not an easygame.
It's not set it and forget it.
You've got to manage theproperties, whether you're
dealing, whether you're doing aflip or dealing with tenants.
In all of this, you don't haveto know everything right away,
but you do need to know how tofind out what to do next
building your network, learningeverything you possibly can and
(06:51):
learning by making mistakes.
Those are all become part ofbecoming the kind of person that
a private lender would want tolend to.
You can watch these videosabout getting private lending,
but in the end, who is going togive you money?
Who's going to lend you$150,000 for a house?
Are you the kind of person whohas shown yourself to be
(07:11):
reliable with that $100,000?
Can you handle the money If youborrowed $120,000 and then
borrowed an extra $30,000 so youcould put it into the house?
Are you going to use some ofthat $30,000 to go buy a
motorcycle or I don't know?
I'm just throwing that outthere.
Do you go and buy somethingelse with some of that money,
because you have $30,000 sittingin account, instead of
(07:32):
investing it into the house tobuild equity?
If that's what you're going todo, I'd advise staying out of
this.
Don't get into real estateinvesting.
But whatever kind of goals youhave, whatever you would like to
do with your life, it's allpossible.
Do the hard work of finding outwhat you have to become in
(07:53):
order to achieve all that youwant to achieve.
Whatever goal you have, thereis something that you have to
become in order to achieve thatgoal.
Learn what that is.
Learn what you have to becomein order to achieve the goal,
and that's what you strive for.
That's what you do.
You become the kind of personthat achieves the goal, and then
(08:14):
that is where life takes you.
So the information is withinyour reach.
In fact, everything you needfor success is within your reach
right now.
Whatever you are right now,that's not where you're stuck.
You have the chance to becomeentirely new, starting right now
, or tomorrow morning, if youwant.
(08:35):
I'll give you a day to think itover.
Well, this episode is a little bit different than
normal.
I'm diving into something Idon't usually talk about, which
is real estate, investing andborrowing private money to
purchase houses.
But buried not too deeply inthis material is a huge personal
development lesson that's goingto be beneficial to anyone who
has any goal.
So listen for the gems, even ifyou're not into real estate,
(00:22):
because the lesson could changeyour life like it did my own.
I've seen so many so-calledgurus on social media lately
teaching people how to get intoreal estate by finding a private
lender and all the stepsinvolved, how easy it is to use
private money to buy real estate.
I know a lot of viewers getexcited, thinking if they could
just find a private lender andmaybe, maybe someone, somebody
(00:42):
might lend them money.
And as briefly as I can, here'sthe system.
If I see a property that I wantto flip or rent instead of
going through a bank, I get aprivate lender to send me the
money at a really high interestrate.
I get the house, fix it up andrent it.
Then I refinance the propertywith a traditional bank and use
the refinance money to pay offthe private lender.
(01:04):
Now I own the house with amarket interest rate and my
lender is paid off and mademoney off.
Me and my tenants are paying mynew mortgage.
That's pretty cool, right, butthese hype videos and I call
them hype videos because theperson who created the video
heard about this great system,how it works, and it is pretty
(01:24):
cool.
But when they talk about thesystem, they get to sound really
smart to a bunch of people whohaven't heard about the system.
So the videos get a lot ofviews and they get even more
popular.
What I haven't heard in all ofthese hype videos one major
component that's missing is thisIn order for the system to work
, you have to become somethingnew.
(01:46):
You have to prove to alegitimate private lender that
you are the kind of person worthlending money to.
So unless the deal isabsolutely spectacular, amazing,
almost risk free, the privatelender isn't going to help you
out if you're not the type ofperson they want to lend to,
even if it's backed by a house.
Now they might say well, if youdefault on my loan and I end up
(02:09):
with this house, I can stillprobably make twenty or thirty
thousand dollars from flippingit, or more.
In that case, they might agreeto the loan just in case they
have to take the house back fromyou.
But if you default, your timewith private lenders is pretty
much over.
You have to become a dependable, reliable person, someone they
want to lend money to.
(02:29):
My private lenders love mebecause they're making money off
me.
I provide value to them.
They're renting me their money.
I'm renting fifty thousanddollars for five hundred bucks a
month and then I pay back allthat money.
It's like I'm saying, hey, canI rent your hundred thousand
dollars for a thousand dollars amonth?
And they agree.
And I make money because mytenants cover that cost and the
(02:50):
lenders make money because Imake sure that the payments get
to them.
I don't default on my loans.
I'll do whatever it takes toensure my private lenders get
their interest first.
Then I do whatever it takes tomake sure the properties are
ready to refinance, whether Ihave to bring money to the
closing table or not to ensurethat my private lenders get paid
off.
(03:12):
Now that I've had some closedeals, my primary lenders and my
primary lender is alwayslooking for more.
He asked me have you foundanything yet?
He wants to know.
He wants me out there lookingfor houses borrowing money from
him.
Both of us are making money.
It's a pretty abundant cycle,but it's because I became the
type of person that he trusts,and that happened four years ago
.
No one four years ago wouldhave just given me a hundred
(03:37):
thousand dollars and said hereyou go, take it, use it and make
us both some money.
So what did I do to change?
Well, I didn't spend my timewatching like 22 year old real
estate gurus on no offense to 22year olds, right but I didn't
spend my time watching people onTikTok videos.
I started in February 2019.
(03:59):
I started taking seminars,courses and classes.
I read about a hundred books ayear for four years on personal
development, business, sales,marketing, social science,
behavior, economics, psychologyand more.
At this point, I was stilldiscovering my path.
I hadn't chosen real estate yet.
I was still discovering what Iwanted to be doing.
You can hear more about it inthe episode called the Hike.
(04:22):
That Changed my Life.
Once I decided to get into realestate, I got involved in the
real estate community.
I started meeting the localprivate lenders, joined my
apartment association locally.
I went to a class calledLandlord 101 that the Apartment
Association holds and got acertificate in Landlord 101.
I took a course on how to buyyour first rental property in 90
(04:43):
days and I joined a mastermindof real estate investors.
All of that that I did helpedme set up my system and gave me
all the documents I needed torun my business Before I ever
owned a property.
I set up an LLC, got myoperating account set up as well
as the escrow account fortenant security deposits and, as
my mentor said, you get yourbucket ready and the properties
(05:05):
will fall into it.
So I got my bucket ready.
I took all these steps, thenstarted asking questions at the
meetings.
And here's the thing they wereinformed questions.
I'd been reading, I'd beenstudying, I'd been doing the
work, just figuring out exactlyhow I'm going to run this
business.
So when I asked questions, theyknew kind of what I already
(05:26):
knew and they could see thatthese questions were coming from
a place of some knowledge andsome effort in learning for
myself.
So the private lenders who werethere at these meetings
actually said to my mentor oh,matt is a solid, up and coming
individual in the real estateworld.
They knew that before I evenowned my first property.
(05:47):
This was only possible because Ibecame the person that I put in
the time I put in the effort,and I'm not trying to brag for
real.
I just want to make the pointthat it's possible to design and
live an amazing life, and I amthe worst of all sinners, to
quote the Bible.
So if I can do it for real,anyone can do it.
(06:09):
In February 2019, I couldn'timagine making a call casually
asking for $250,000.
And now I'd make those callsevery day if I were finding cash
flowing properties.
That's a nice dream, but but Iwould make those calls every
single day.
Life is different because Ibecame something different than
(06:30):
I was four years ago.
But real estate's not an easygame.
It's not set it and forget it.
You've got to manage theproperties, whether you're
dealing, whether you're doing aflip or dealing with tenants.
In all of this, you don't haveto know everything right away,
but you do need to know how tofind out what to do next
building your network, learningeverything you possibly can and
(06:51):
learning by making mistakes.
Those are all become part ofbecoming the kind of person that
a private lender would want tolend to.
You can watch these videosabout getting private lending,
but in the end, who is going togive you money?
Who's going to lend you$150,000 for a house?
Are you the kind of person whohas shown yourself to be
(07:11):
reliable with that $100,000?
Can you handle the money If youborrowed $120,000 and then
borrowed an extra $30,000 so youcould put it into the house?
Are you going to use some ofthat $30,000 to go buy a
motorcycle or I don't know?
I'm just throwing that outthere.
Do you go and buy somethingelse with some of that money,
because you have $30,000 sittingin account, instead of
(07:32):
investing it into the house tobuild equity?
If that's what you're going todo, I'd advise staying out of
this.
Don't get into real estateinvesting.
But whatever kind of goals youhave, whatever you would like to
do with your life, it's allpossible.
Do the hard work of finding outwhat you have to become in
(07:53):
order to achieve all that youwant to achieve.
Whatever goal you have, thereis something that you have to
become in order to achieve thatgoal.
Learn what that is.
Learn what you have to becomein order to achieve the goal,
and that's what you strive for.
That's what you do.
You become the kind of personthat achieves the goal, and then
(08:14):
that is where life takes you.
So the information is withinyour reach.
In fact, everything you needfor success is within your reach
right now.
Whatever you are right now,that's not where you're stuck.
You have the chance to becomeentirely new, starting right now
, or tomorrow morning, if youwant.
(08:35):
I'll give you a day to think itover.
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