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Beginner's Mindset - Best Advice for Starting Real Estate - From a Doctor! - YouTube
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All right, Matt, welcome to the show.
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Danny, it's really good to be here.
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So Matt is a lifelong learner.
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He's only 30 doctorate of anesthesiology
with the mail from Rochester,
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and he's also the founder and CEO of W M
V, a commercial real estate company
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which specializes in triple net
commercial assets.
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What is triple net?
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Yeah, so triple net lease
is where the taxes, insurance, property
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management, maintenance and repairs
are passed through to the tenant.
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So it's a very
predictable stream of income.
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So the example would be like
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a FedEx distribution facility
or Walgreens or grocery anchored center.
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A lot of people are familiar with,
you know,
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single family investing in multifamily,
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self-storage,
those kind of things and kind of and level
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many times as triple net leases
that are passive income sources.
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So it's far more like a big box
retailer or big box commercial.
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A triple net lease is just a kind of lease
that you can put on
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on really any property lately,
and that's why it's so scalable.
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So I was trying to replace a lot higher
income than many people do.
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So the first step is trying to replace
your expenses that you have, then you're
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trying to replace your income
and then keep going further.
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So I learned that your time became
your most valuable asset,
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and that's why I moved to triple
net leases.
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You were around these surgeons.
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You're still in this time.
You're in your twenties, right?
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So I don't know how you figured this out
some early and all of a sudden
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you're saying, you know, I don't think
that these guys are really worth
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and probably have a nice home.
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They work a lot, have a nice car,
but that's about it, right?
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Absolutely.
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And I started doing a lot of reading
and you know, I think going to
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all the schools helped me continue to,
just like you said, be a lifelong learner.
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And I read the book called Vivid Vision
and I set a vision
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of December 19th, 2019.
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I set a vision to own
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$50 million of real estate in three years,
and I ended up doing it in one year.
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And so there was some mindset shifts
that I was able to do of
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when you set your goals
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and intentionality of like, I'm
going to put myself in that position now,
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you know, hey, if I want to live on
a beach sun, go down for a weekend
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and spend the night in an expensive hotel,
feel what that feels like.
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Fly first class.
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Try it,
and you almost can trick your brain
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into believing
that you know that can be real for you.
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And then all of a sudden, it's an identity
that you take on and your habits
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eventually become that person.
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So, Matt,
I want to break this down, though,
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because you basically just said you had
millions of dollars in real estate.
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Very quickly.
Let's start from the beginning.
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You know, real estate's a triangle
and its money, knowledge and hustle,
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and you only have to have two sides.
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So if you don't have money,
you need the knowledge and hustle.
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So you could go to somebody say, I'll pay
you 10% interest only on your money.
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I'll sign a promissory note.
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I'll give you a point on the front end
or back end.
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You can structure the money
however you want.
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It ultimately comes
with having a good deal to begin with.
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And I was just coming out of school
when I did it, so I actually didn't
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really have much money at all
at that point.
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But I did have a mentor
out of the relationships
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and then had the opportunity.
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So how did you meet your mentor
real quick?
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Basically, someone might leave.
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So leading lagging indicators
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that a lot of times I encourage
people like his call ten brokers a day.
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And you know, it's
kind of like the burrito
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principle of 80% of the deals
are getting done by 20% of the people.
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And so I think in most markets,
you can make calls and say,
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who are the deal makers,
who are the closers
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and you're able to find those individuals?
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And that's how do I get that person
in my inner circle, right?
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How do I provide enough value to them,
whether it's stair stepping up?
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So when you close on a first property,
it's like, Oh, he closed, I got paid.
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My commission now is double it.
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When did you? It hit you.
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You need to not flip
and then hold for cash flow?
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Absolutely.
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So there's huge tax problems,
if that's what you do, right?
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So now I'm at a point
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where I have my own family office
and I'm holding most of the assets because
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you don't just go out and buy something
because it's packaged and it's for sale.
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So you actually saw through that
and saw the value creation
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which actually got kind of
to the next step, right?
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Absolutely, yeah.
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So when we value properties,
that's from an income based
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approach or account based approach
on an apartment building, it's
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what are the rents in the area? Are mine
above or below?
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Right?
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What are the expenses
lesson to increase the A.I.?
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And then with triple net property,
you know, some of the underwriting that we
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do, it's, you know, cap rate,
but it's also price per square foot.
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But other things we look at is real estate
location, location, location, right?
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What are the vehicle counts
in front of the building?
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There's a technology called Placer Air,
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which goes off your phone and measures
foot traffic in and out of building
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and can rank that tenant
against all their other locations.
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We can look at store sales
if it's a grocery anchored center
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and see that those are increasing,
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so there's a lot of ways
that we can underwrite
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and make sure that a property
is going to be solid for the long term.
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How long?
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What's the timeframe?
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May 16th of 2019 was my first trip.
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Oh my god.
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Yeah.
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So like, if somebody was,
what would you tell them to do?
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Like what?
How would you tell them to get started?
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Yeah.
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So I think that, you know,
the banks will lend off of the asset.
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The primary source of repayment
is, is the tenant, right?
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So you're going to be able to I think
that debt is a hedge against inflation
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when inflation's at 7% or whatever CPI,
and you can get that at sub 4%.
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All of a sudden, you almost have
a negative cost of capital,
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meaning that we kind of I talk about
for mindset shifts in the book.
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one is active to passive income.
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one is cash flow to net worth,
one is six to seven figures and beyond.
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And the other one is debt
negative to debt positive.
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And all those are mindset
shifts of if you have a great job,
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you're making a lot of active income.
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How can you turn that into passive income
and then also having somebody
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fill out
their personal financial statement,
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which Robert Kiyosaki talks about this
all the time, right?
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That that really clicked for me
when I was like, Oh, I'm making this,
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but I'm not keeping it.
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So as people fill out
a personal financial statements
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not only can help them
get the debt with the bank,
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but help them understand their net worth,
and you can choose your net worth
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if I'm 30, when I'm 60,
the property is going to be paid off.
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So if I take out 1,000,000 dollar
loan, I'll pay off 1,000,000.
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If it's ten or 100 million, you can.
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You can start to think about, you know,
net worth and cash flow keeps you alive.
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And it's the lifeblood, right?
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Cash flow is very important,
but ultimately when you have enough
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to be financially free, network
starts to become more important.
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So and then I would just say that
taxes are your number one expense.
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It's not your lattes or,
you know, your travel, that kind of thing.
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So how can you minimize them
proactively plan your taxes.
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So one of the strategies is if you know
one of the spouses stays home,
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if they can qualify
as a real estate professional,
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which is 750 hours a year and or 51% time,
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then if you buy one of these buildings,
you can take bonus depreciation
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and all of a sudden that passive losses
become active losses without offset
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act of income,
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which means you can take
your tax liability
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to zero depending on the state
you live in.
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If you're in California,
that may not be true.
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But so I would say that tax planning
getting somebody who's really proactive.
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So it's not just like, here's
my papers at the end of the year, but it's
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how do I qualify?
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And starting to ask
those difficult questions
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is what I would say
to that high income earner.
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I don't think W-2 a full time job
as security, as much
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as having multiple streams of income.
What would you say to that person?
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Well, to the person
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who doesn't like their job, I would say,
don't give up, don't sell out.
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You know, as a
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as a kid, you always had those dreams
of doing those things, going those places.
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So I think that creating
those magical moments for you
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and maybe it's taking a trip
and going somewhere, you know, to
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to kind of breathe
that life back into your dreams
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and realize that you are capable
of anything creating passive income.
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Where anything can happen to me, I can,
and I make money while I sleep and I,
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my kids are protected.
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And it's these kind of steps
of financial independence to where
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it's about creating a legacy.
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Or there's these two versions of you,
right?
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The version that you could have become
in the version that you actually are.
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And you know, fulfillment
is the congruence
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between those two in those two matching.
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And so I think that it's a lot more
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than making a decision based on a job,
but it's what's your passion?
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What's your vision? You know,
what's going to fulfill you?
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And guys like,
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you know,
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when when Matt comes out with his book,
it's going to come out in September?
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Correct? Yeah.
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You know, read it.
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Absolutely.
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Yeah. And I and that's
what I hope to do with this book.
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My goal is how do I create a lot
of financial freedom for people?
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And then what can they do with that time
time with family,
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non-profits, those kind of things?
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It's important, right?
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Thank you.
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Awesome job.
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Can't wait to have you on again.
I can't wait for your book to come out.
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Let's awesome. That sounds great.
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Thank you so much for having me on.
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My pleasure. Always great. Take care.
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