Experts You Can Trust: Passive Investing Musts

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E122: Experts You Can Trust: Passive Investing Musts – Matt Faircloth


Summary

 

Think you want to be a passive investor? Do you know your risk-tolerance, end goals, and what to look out for? Today’s episode with Matt Faircloth is packed with tips and strategies for success in passive investing.

BIG TAKE-AWAYS:

 

  1. Own who you are – you’re not going to please everyone
  2. Focus. Stay in your lane
  3. You need to know what your “risk tolerance” is
  4. Do your own research! Remember, trust – but verify

 

Keystone Habits: 

 

  1. Miracle morning (workout, meditate, journal)
  2. Revisit goals daily
  3. Plan the day everyday

 

RECOMMENDED BOOKS:

 

  1. Conversations with God – Neale Donald Walsch (https://amzn.to/3cCv0jE)
  2. Raising Private Capital – Matt Faircloth (https://amzn.to/3dUXUMp)

 

 

Links: 

 

 

 

 

Show Notes

 

 

Matt Faircloth has been a full-time investor for 15 years. He is co-founder of the DeRosa Group, a real estate investment company that specializes in buying and renovating residential and commercial properties, and is the author of Amazon best-seller: Raising Private Capital.

 

Matt and his wife, Liz, started investing in real estate in 2004, and since have extensive expertise in connecting passive investors to lucrative investment opportunities through syndications, private loans and joint ventures. They have completed over $40,000,000 in transactions using private money.

 

Matt’s driving purpose is the joy and challenge of what it feels like to do his best, as well as his drive to be an inspiration to his kids.

Read the Transcript Here

Title:   The Investor Mindset Podcast EP 122 – MASTER – 16 LUFS V2

Duration:   00:34:24

Interviewer:   Steven Pesavento

Interviewee:    Matt Faircloth

 

[00:00:00] Steven:   When investing as a passive investor, it’s absolutely critical that you make the right decisions upfront, because there’s so many different pieces of the investing pie that you’ve got to consider. And once you place that capital, you can’t touch it. And so that’s why in today’s episode, we’re really diving deep with Matt Faircloth of bigger pockets on what to look for as a passive investor and how to make sure that you’re investing with the right operator, you’re not going to want to miss this episode.

[00.00.33] Narrator:  This is the Investor Mindset Podcasts. And I’m Steven Pesavento. For as long as I can remember, I’ve been obsessed with understanding how we can think better, how we can be better and how we can do better. And each episode we explore lessons on motivation and mindset for the most successful real estate investors and entrepreneurs in the nation. 

  I’ve got some really exciting news. Our operating partners on the commercial multifamily space have agreed to invite new investors and as some of our future deals, we are proud to bring these institutional style opportunities to investors within our community. In order to have access to these investments, you have to sign up at theinvestormindset.com/invest. And we have thousands of people will listen to the podcast. And we typically only allow 50 people to invest in each deal. So make sure you head over there right now because once we send out the email announcing our next deal, it’ll likely be sold out and oversubscribed. So get started at theinvestormindset.com/invest. And I look forward to seeing you on the inside. 

[00.01.40] Steven:     Hey guys, welcome back to The Investor Mindset Podcast. I am excited I got Matt Faircloth in the studio today. How you doing Matt? 

[00.02.47] Matt:     I’m awesome man. Thank you so much for having me here.

[00.01.50] Steven: So grateful to have you here. And as you guys know, Matt is the author of the Bigger Pockets raising private capital book and is the co-founder The Derosa Group, a real estate investment company that specializes in buying and renovating residential and commercial properties. Both Matt and his wife, Liz started investing in real estate back in 2004. And since have extensive experience in connecting passive investors to lucrative, lucrative investment opportunities through syndication, private loans and joint ventures, and today we’re going to get into is actually what are some of those questions that passive investors should be asking? How do you know that you’re heading into a good deal? And how do you make some of those decisions? And so before we get into that, are you ready for things? Matt? 

[00.02.35] Matt:     I’m ready. Let’s go, man. Let’s do it. 

[00.02.37] Steven:    That’s what I like to hear. So obviously, you’ve had a lot of success. But why don’t we start out by taking a look back at earlier in your life? What events or influences from your childhood shaped who you are today? 

[00.02.49] Matt:       Oh, yeah, let’s go there, man. I love it. Thank you for that, so my childhood. Let’s see. So I’m adopted. And I don’t remember any of that side, the transfer of parents or anything like that, was only three months old when I was adopted. But what I do remember is that my parents told me very early that you’re adopted and it’s okay. And they had a gotcha party, you know, have parties from the day they got me and stuff like that. And they made it just like, okay, it’s like telling me I’m left handed, that you’re adopted, which I’m left handed, but they’re telling me Hey, you’re left handed. And also, you’re adopted, I equate the two. And what was interesting is that other kids thought that they could get to me by teasing me for being adopted, right? But it’s like, but the fact of the matter is, my parents have given me that superpower, that the facts of you are who they are, and the people can’t tease you for being left handed because you are and they can’t use you for being adopted because you are, it’s a fact.

                                And so what that taught me I believe was a level of resiliency and a level of not worrying too much other people think and also Just being really proud of who I am, and also willing to just kind of keep on trucking along and not really let things that are out here affect me too much let my strength from come from inside. So I would say that was a big thing from him growing up, that I carry around. Yeah, people never ask that in a podcast is a phenomenal question. Thank you for asking that.

[00.04.21] Steven:  Of course, it’s been one of my favorite questions. I’ve been using it interviewing people for my company for a long time when I started the podcast just felt like what a great way to get to know somebody right off the bat. And so it’s so cool, because, you know, early on, there were some things that other people could have used against you or that you could have maybe adopted a story that wasn’t really powerful, but instead, your parents helped shape that story into being something that could actually propel you forward. How do you think that’s impacted what you’re doing, you know, in real estate, or how could others you know, use that same kind of methodology themselves to not be held back by what other people might think?

[00.04.59] Matt:       Well, I mean, I think People need to refer for me the tools that it gave me were just like I am, who I am. And that’s okay. I think that the other investors, if they’re carrying something like this forward, I think you’re going to learn a few things that, and this maybe translate translates to talking about dealing with passive investors, is everyone as a syndicator or somebody offering in my book raising private capital, I talk about cash providers and deal providers. So as a deal provider, what you know what we do and bring opportunities to people, we need to be okay that we’re not going to please everybody. And some investors are not going to, you know, they’re not going to want to do deals with us because they don’t like our returns. They don’t like the markets we’re in or whatever. And you could go and try and produce something that your investors will like, or you can be committed to what you’re producing, and have the faith that at some point, an investor will show up is going to want to do that. I have tried both.

                                And I can tell you that only the second option works, because every investor is different areas. I want something more different. And you could have the courage as a cache provider, deal provider to say hi I can’t work with this investor, I can’t help them. And that’s okay. Because I can’t help them get to their goals. And I think that, that there’s a lot of courage to that. And I think that especially for newer folks raising money to say, are you kidding me? This guy wants to give me $50,000. All I have to do is find a deal in Kansas City. Well, you don’t know anything about Kansas City, you don’t invest in Kansas City, you’re looking in Houston, why are you know, just to get this person’s 50 grand, you’re going to go and do a deal in a market, you don’t know.

                               You cannot be everyone to everybody. And you’ve got to offer the flavor ice cream, you know how to scoop the flavor of ice cream, you know how to produce, you shouldn’t just go and buy Self Storage center because all your investors are pushing you to do that. Stick to what you know, and have the courage to stick with it. And I’m not saying those investors will come around, they may. But you’ll also be more convicted in the direction you want to go in versus trying to chase a lot of different directions just to keep your investors happy. 

[00.06.51] Steven: What a more confident way to be able to run your business in your life to be able to say hey, this is what we’re doing. I don’t have to second guess it. I have to question with every single person because you can’t really make everyone happy if John says, Hey, I want this kind of deal, and Becky says, I want this kind of deal, are you going to do both? And if we’ve got 100 different investors all looking for different things, it’s kind of hard to please everybody. 

[00.07.12] Matt:       You do 100 different kinds of deals. Yeah, you know, and you’d be chasing, I call it chasing shiny nickels. And you’ll be chasing shiny nickels all over the planet, trying to get ready, happy, and then I can just listen, tell me and I’m telling you for someone who’s done it firsthand, who’s good, who’s done the wrong things, and has gone the wrong directions. I knew firsthand, that, that will create a very stressful life for yourself, then it’ll likely create mediocre performance because when I first got started, I did a lot I went in a lot of different directions and, and fundamentals a lot and now that I’m focused on what I want, that’s been that’s we’ve created a lot of traction for ourselves by just staying focused. 

[00.07.50] Steven:    Yeah, that makes so much sense. So what’s your core focus now what is the Derosa Group do in the investing game? 

[00.07. 57] Matt:     So what we do is about We’re primarily a mid size multifamily and larger multifamily investor and owner. Then we’ve got a team that implements those mid-sized multis and everything like that. We are going we are pivoting in the middle of a pivot with Corona crazy and just because that’s because Corona virus, because the market cycle is shifting and partly because of Corona virus. And partly because a lot of other factors, we’re going into a new market cycle. And because of that we’re shifting our model. But we have always been primarily a residential housing company. We’ve done a lot of fix and flips. We’ve done a lot of apartment buildings and a lot of buying holds. But we primarily provide residential housing to people. And so whether that’s through indirectly or directly, well that’s what has been our focus. We’ve just grown that larger and provided residential housing in a larger scale. As we’ve grown.

[00.08.48] Steven:   Yeah, that’s huge. So obviously, we’ve got Matt Faircloth of bigger pockets book on raising private capital, the man who wrote the book himself, so I want to paint a little bit of a picture here. Imagine that I’m a passive investor, and that I’ve got some capital, I’m either working in my business or I’m working in my job. And there are so many different investment opportunities. How do I go about understanding who I should invest with or what kind of deals I should invest in? And, you know, I want to kind of go down this path kind of walking through, and laying out a model for other people to be able to take and run with on their own. Is that something you’re up for Matt?

[00.09.25] Matt:        Absolutely, man. Let’s do the tour. 

[00.09.27] Steven:    All right. Well, yeah, let’s dive in. I mean, where somebody should start if they want to be a passive investor 

[00.09.32] Matt:     To be a passive investor? So the first thing they need to do is look at their resources, right? They barely I’ve had passive investors read my book, raising private capital is not just about how to invest or how to be a fundraiser. It’s also about how the marriage between deal providers and cash providers, right, it’s about that symbiotic relationship. So if somebody is a cash provider, and they want to get involved in passive investing in real estate they should read, right? Um, you know, not plugging it, but it should read but read books like raising private capital because it does talk, you got to get inside the mindset of the deal provider in raising private capital approaches it from both conversations, right? Just like the deal provider needs to do this too, the deal provider needs to sit down and set goals and look at the resources, what they bring to the table and decide where they want to go.

                               The cash provider needs to do the same thing. They say, Okay, I want to be retired in six years I want to be making 100,000 a year is when I’m retired, and I’ve got a 401k I’ve got an IRA and I’ve got x amount of dollars in cash, okay, and my home is 50% paid off, okay. Those are the resources they bring to the table and they need to answer the goals that they have. And then they need to get an idea of the risk factors that they’re willing to tolerate in exchange for returns. Because a little known fact that people are willing to dispute this one all day long, but I believe it’s true in that the moment returns someone makes 100 investment and the more perceived risk they are taking for that investment.

                                So if somebody approaches you saying like, I got to, you know, Hey, I got a deal, the ROI is 50%, five, zero 50% in a year, and it’s no risk, it’s all collateral, it’s 100%, security, whatever run for the hills man, that is snake oil they’re selling. And so the if you want to make a 50% return, you know, you might as well just go and put it on a roulette wheel, because it’s that there’s about the same level of risk of losing it right, you know, just bet on black on the roulette wheel, and that’s about a 50% chance of you’ve got a doubling up right. At the end of the day, investors need to question what their risk tolerance is, and that will govern the risk tolerance versus their desire for growth of their portfolio. Those two questions will level them out about it, it’s about a return that they want to make on their money.

                                If they are extremely risk averse, don’t want it they want to just preserve capital. They want to just hold what they got and not lose money and grow A little bit, but most importantly not was that was money, they might be more comfortable in returns of like the 3, 4, 5, 6,7 or 3, 4 or 5% in that range, and they could probably find very liquid investments where they can put it in and get it out, put it in and get it out, put it in and get it out, you know, at that range, in very, very unlikely lose any drop of their money on the higher side, if they want to make you know, 15, 20%. That’s been possible up until now, Steve, but it’s maybe not so much. There’s a lot more risk that you have to be okay with at that return level. But in exchange for that you get potential for a way higher return. So investors need to question what they’re willing to give and get with regards to risk and risk of returns and growth of their money. That’s question number one that’ll enable them to have an idea of what return they want to make.

                                And then the before we go into if you can come in on that, but I want to the next thing I want to get into is should a cache provider be passive or active, because we didn’t get we just jumped right into being a passive investor. A lot of passive investors think that they want to be passive, but they really don’t want to give up the control. And you really ought to just be active. Because I’ve had investors that are like, well, I’ll invest with you, okay, great, here’s how it works, and you’re going to give us some money, and we’re going to put in a deal and all that, like, well, I want to have a say on where the deal is. And I want to have a say on well, you know, where the money gets spent no one have a say on, you know, tenancy and that would be involved and want to make a better return on my money also, by being involved in the deal. Well, they really want to be a deal provider, they really want to put their money to work and be a be a GP, the general partner, they might be better off doing that. A lot of people that want to do that think they want to passively invest are not really willing to relinquish control. And so if that’s the case, they need to look themselves in the mirror, I realized they probably should just be active, they really want to make a good return. 

[00.13.46] Steven:  Yeah, that’s such a good reminder, as you know what actually goes into making the decision to be passive,that means you’re actually giving up control.

[00.13.54] Matt:         Yeah

[00.13.55] Steven:   You probably want to start there first. If you’re comfortable giving up control to somebody else or somebody else’s company to make decisions about where your money is spent and how it’s invested, then going down the passive route can be a good choice. And if you’re more of somebody, who needs to be in control of every single detail, then going down the route of being more of an active investor, or an operator.

[00.14.17] Matt: I’ve talked people out of it, Steve, people call me up being like, I want to passively invest. And as I dig deeper into it, I’m like, man, listen, you don’t need to, you should not be investing in passive investing passively, you want too much control, the returns you want, are probably are not something I can stand behind. And so you just really ought to really own your own destiny more than just being passive, that you really should just be driving the bus versus being a passenger on the bus. So I’ve told people more than once that passive investing may not be for you, but if they’re willing to go, if they’re willing to take their hands off and go and live their day to day life, if they love their day job, or if they want to eventually transition into being a full-time real estate investor, but not anytime soon, then passive investing maybe for them. I have people invest with me, Steve because they want to learn, I feel put money with me so they can learn how to do what we do by bearing witness to it. That’s fine. You just can’t call any shots until you’re qualified, you know. 

[00.15.16] Steven:  That’s great, and so that leads me to my next question, which is actually, what are the benefits of passive investing? You know, why would somebody want to do this, if they’ve got to give up all this control? They don’t get to, you know; make decisions about what’s happening on that individual deal. Why would someone want to invest passively? 

[00.15.34] Matt:  It depends on the company you’re investing with. I mean, there’s got to be a street cred. There’s got to be, you know, like, like a, like a track record of success with that company. And there’s got to be a comfort level with the syndicator with the market with their business model that they’re doing. Beyond that, it goes to the basics. Beyond that, you’ve also got to be a syndicator you can trust and also syndicator, who has a certain philosophy that you do We have a few certain philosophies on and you will see this philosophy work its way into a lot of our investments. Number one, we transform lives through real estate. So if I do a deal, I need to know that that deal is going to a pedestal here. We try and do something to provide employment and to make the world a better place in some way through the investment that we do now get you we are not enough for profit, we are making money, we make money, we but we like to make money while we make a difference. Okay, so you’re not going to see me provide something that’s like, hey, listen, we’re going to build this apartment building on top of a sewage where there’s a former sewage treatment plant, and we’re going to rip it down. We’re going to clean up the soil and we’re going to put an apartment building there and attendance will be fine. It’s okay just disregard the smell. That’s not something that we would do. And that’s just because it wouldn’t be marketable, but because it’s just not the right thing to do by people. Okay. So we transform lives to real estate and we want to make an impact on people through our business. That’s number one, number two; one of our other philosophies is transparency.

              So some syndicators believe that they’ve got the secret sauce like the cake, like KFC is a finger licking good recipe. They won’t let you see it and there’s a secret sauce, they can’t do that you can’t see on how they do what they do to make their returns. That’s fine. And a lot of a lot of syndicators don’t want to show how they’re underwrite deals or how they’re analyzing stuff and how they’re finding markets. And they may, you know, in some ways, they might have a hold of something really great that people might want to see, but they probably should keep proprietary. Fair enough. That’s not us. We’re a transparent company.

                                 We let a lot of our investors see exactly how we do what we do. They have access to my underwriter. They have access to my acquisitions team to my asset management team. Everybody that invests with us has a private Facebook community. There we have a private Facebook community they have access to that they can be a member of and we have all of our team on there regularly through live sessions and stuff like that. So transparency is one of our terms. I’ve done I’ve had people I like and respect, say straight up, you won’t you don’t want to give your investors too much information because they could either, you know, take that information and try and duplicate you, or, you know, and it’s not me, it’s not what I do. 

[00.18.12] Steven:    And it sounds like that’s something definitely to look out for. But back to the original question, what are some of the benefits of passive investing? You know, you’re talking a lot about reasons on why it sounds like somebody maybe should enter what they want to look out for. But why would somebody actually want to go down this route? What’s the benefit of it?

[00.18.27] Matt:    The same goes for buying Microsoft stock, you know, or buying stock or whatever. I mean, you know, if you’re buying stock in a company, at the end of the day, you’re getting, you know, you’re making money through the efforts of another, you know, to put it in the words of the SEC is the SEC was one of the ways the SEC defines a syndication or defines it as an equity investment. There is security, you’re making money through the efforts of another and you’re getting to double up on your time. A cache provider is investing through a deal providers’ time do provider is making money through the cash providers’ money. And so you’re exchanging money for time, that’s in exchange for the passive investor because there’s only but so much time in the world. And so if I’m able to make money to somebody else putting the time resources and effort into a deal, then that works for me, the providers on the other side of the equation, where they are, you know, able to buy larger deals through people investing with them in exchange for them putting their time into the deal, which is a good trade, I think. 

[00.19.27] Steven:    So if you don’t have the time, or you don’t have the experience, or you don’t want to be in control of every detail, then it’s something probably worth looking into maybe going down this passive route. And so obviously, we mentioned some things about what to look for in an operator, it sounds like transparency is important to you, understanding kind of what their investment criteria is like what you guys are creating, what else does somebody look for, what should they watch out for, when making a decision on who to invest with,

[00.19.57] Matt: I think that every syndicator, I wouldn’t say like, Oh, don’t invest with a syndicator, where it’s their first deal, you got to make sure that there are checks and balances there. So you have to make sure that there’s enough experience with the syndicator that they can, you know, carry forward on the deal. And if they don’t have the experience themselves, make sure they’ve got it on their team, or through a mentor or through their resources, or whatever it is, make sure that they’re not so far over their head, they’re not going to be able to figure the deal out or figure out the left’s and rights of the deal.

                                That’s the biggest thing, is to make sure the syndicator knows what they’re doing. Also vet the team because it’s not the syndicator and their syndication team is one thing, but there’s also members of the team that might not work for the syndicator they might be the property manager, you know, you need to vet those things and make sure you believe in the market, do your own homework, the syndicators are going to tell you 10 ways why Albuquerque, New Mexico is an awesome place to invest. But if you happen to have a brother-in-law that knows Albuquerque disease to live there, use your own resources and ask around about the markets that you’re considering investing in it, don’t just call the syndicators data.

                                Look at your own data because you might realize, hey, this person’s trying to sell me x. And it really looks like things are why as you do your own homework on deals syndicators, do their own homework on deals too. But make sure that you do your own research on the syndicator themselves and on the deal. Some people try and ask for references on the syndicator. But honestly, the syndicator is only going to give you their absolute most raving fans as references. So I don’t believe in asking for references. But I do believe that you should do to make sure that you’re not you know, getting into a bad deal if you’re a passive investor, is to reach into your own network and ask about that whoever that person is, or reach into their circles to say, Okay, I’m not going to call Matt Faircloth directly or ask Matt Faircloth for references but I’m going to reach into his circles of people that he liked me knows, then ask about it.

                                 We were going to just this happen to me. We were going to do business with somebody who was working on an apartment building deal and they ended up there, it turns out, a couple years ago, it turned out that other people in that market did not view that people in high regard. And I just called them and said, hey, you know, I’d called the other investors I knew in that market say, what do you think of this? You have Joe Smith, and he said, you know, he’s okay. He’s alright, as well. Tell me more. I heard that I heard the pause. And so they told me the story of why they weren’t sure about it. And that was enough to talk us out of it now had this person given us references, then they would have been raving fans because that’s who people give for references they give their raving fans, but do your own homework on someone reach out and reach into their network, you know, to people that may know them. That’s better homework to do. 

[00.22.34] Steven:  Yeah, it’s worth it to do a little bit of digging when you reach out to somebody who  they know, I this happened to me one time I was about to hire this person in on the marketing front and they were going to have access to a lot of information and be paid fairly well. And I reached out to the one person on LinkedIn that they had a connection to and ended up finding out this person was not only untrustworthy, but an actual con artist. He had actually, like taken off to Mexico, was living in Mexico with a bunch of people’s money after bankruptcy. And so it stopped me not only from associating with this person, but also paying them a bunch of money that maybe would have never came back. And if I wouldn’t have just asked around, I went to been told that this is literally the worst person in the world to possibly do business with. So I think it is always worth it.

[00.23.19] Matt:     A wolf in sheep’s clothing, right? Yeah, 

[00.23.21] Steven:  Absolutely. 

[00.23.22] Matt:   Yeah. Man that phone call saves you a ton of money. That’s great. Good for you. And I think that it pays to make those phone calls a little bit of kicking around and that and maybe not calling the person directly and asking for you know, hey, who can you tell me that knows you? Do your own digging, your own detective work? 

[00.23.42] Steven:    I think that’s great. Is there anything else you think a passive investor should know before we move on to the next section?

[00.23.47] Matt:  Yeah, I think that we covered it. I mean, it’s really about understanding that it’s not about just handing your money to somebody, passive investing is doing a ton of homework upfront. A ton of investigations up front And then once you’ve made the good decision, making the investment and having faith that it’s going to turn out, okay, there’s really not much work to do once the money is handed over once you’ve made that decision, but you can’t just view the passive side of it starts once the money changes hands. Passive investing is an active sport until you write the check. You know, the put the time and find the deal, find the opportunity; find the syndicator you know, put it all together. Okay, this all makes sense. I got it all my, you know, reservations are answered, now you have the money, then you take your hands off the wheel. 

[00.24.31] Steven:    That’s such a good reminder. So in summary, we’ve got to go through, we’ve got to get really clear on what our goals are. Do we want to be in control or not? You know, are we going to audit what resources we have, what we can invest in, and connect those to the kind of returns we’re looking for, and figure out what our risk tolerances and then of course, the actual activity of going out and finding a sponsor, a syndicator, an operator that we trust because we’ve got to trust in this person. You know, obviously vet the deal, and then move forward and hopefully enjoy the returns that come back from it. So, you know, thanks for sharing that with us. 

[00.25.06] Matt:    You got it. 

[00.25.07] Steven:   From a success standpoint, how would you define success? And what is success to you? 

[00.25.11] Matt: Well, I think success is really about living life on your own terms. It’s not about how big the balance sheet is. Besides it’s really not about how much cash flow you make. So as long as you’re, you know, in integrity with your word, then as long as you’re feel like you’re giving your best to life, it’s really about success, be a successful person may be making 40 grand a year, because they’re living life on their own terms and they’re living the life that they want. That person may be more successful in the person that’s making 2 million a month, right? And that so I think that it really has to do with you know, happiness, really which is like success happiness. All those things all equate to around the same thing for me, which I call just general prosperity, having a feeling of your cup running over regardless how much money it has. about putting it to work in the right way and about living life the way that you want to lead it. 

[00.26.01] Steven: And with that definition, do you feel successful?

[00.26.04] Matt:   Yes, I do. Yeah, I live a great life. I mean, you know, I don’t have a Maserati but I love my car. You know, I love my house. I get two beautiful kids, I’ve got a business I love and I’ve got I’ve got more things in the horizon that are in front of me that I want to do that are exciting. So even though I view myself as successful, I don’t think that I’m done yet if that makes sense because I don’t think success means to say okay, that you know, Joe Smith is successful or Matt Faircloth is successful that has been done there. That means there’s a succeeding in life. And so I think I am, learning winning in life and I’m leading a good life. And I’m not done yet. 

[00.26.42] Steven: I love hearing when people feel successful and yet still know that there’s so much left ahead. So what are some of those Keystone habits, the things that you do on a daily or weekly basis that have led to some of that success? 

[00.26.52] Matt: Well, Corona crazy has kind of thrown it in the in the loop, but I mean, we’re I am a you know, Miracle Morning type of person where I get up early in the morning and I get a workout in and do some meditation and some journaling and things like that. I also find that I really live around my goals, and that I visit my goals on a daily basis, I plan my day, every day, I rarely reactively let the day happen to me. First thing I do, once I begin my workday, I can, you know, begin my day earlier than this. But when I sit down on my desk to begin working, the first thing I do is I plan my day. And I think that those that just sit down and do their first task are going to be more reactive and that so I attribute a lot of my success to knowing big picture where I want to go in life and then planning my week and then my days based on getting there. 

[00.27.40] Steven:   It’s awesome. We’ve managed to get to the rapid fire round where the questions are quick, but the answers don’t need to be. Tell us Matt, what’s a big, what’s a book that’s impacted your life the most one you’re excited about right now? 

[00.27.51] Matt: Well, the one that made the biggest impact in my life and Jen, I’m always excited about this book that that I referenced is a book called Conversations with God by Neale Donald Walsch, I recommend, I reference it all the time. Not a business book, but it is a book that changed my life and it gave me a great mindset. 

[00.28.06] Steven:   That’s awesome. What are some of the big takeaways or some of the big premises that somebody would look for if they were going to choose that book to read?

[00.28.13] Matt:        It gives you an idea, it gave me an idea that there’s really, you know, you’re kind of in God’s hands this whole life, there is no way you can fail. There’s only trying again, that’s all you can do, you know, and it gave me a ton of faith that no matter what, even with Corona virus, and everything else going on in the world, everything’s going to be okay, eventually that I’m going to be okay and it’s all in everything brought to me is only good. And it’s my job to bring out the best and all of it and that there is no bad or evil or anything like that. It’s all just things that happen and it’s my job to interpret them the way that I want to interpret them. So they gave me some complete positive outlook and a feeling of just like a partnership with a divinity with a divine source that just loves me unconditionally. Who’s sold my divine my creators sole purpose in life is to see me succeed, and everyone else to, not just me, everyone. 

[00.29.00] Steven:    It sounds like a really empowering book; I might have to check that one out. 

[00.29.04] Matt:          It’s a great book. 

[00.29.05] Steven:    So from an inspiration standpoint, what impact have mentors made on your life? And how do you recommend others go out and find great mentors?

 

[00.29.13] Matt: Mentors have made a great impact on life and on my life, but what I’ve struggled with when I was younger, was finding a mentor, you know, because like, oh, this person is doing it this way. And I’m doing it this way. And, you know, but what I realized in life is that a mentor doesn’t have to be someone that you want to strive to be, they’ve got to just be a few steps ahead of you to want a certain aspect? So I would say okay, I need to find a business mentor, and Joe Smith is a businessman that I respect, but he’s, you know, 100 pounds overweight. So okay, I can’t pick him as a mentor because he’s not living everything in life the way that I want. But what I realize is a mentor could be doing certain things and certain facets that I want and so there are people that I look up to, from their physical health, there’s people I look up to from their dining hall there’s people look up to, from certain aspects of the way they run their business.

                                But what I love about it is, I don’t have to do everything a mentor wants me to do where everything they recommend, at the end of the day, I’m the end all. But I can choose if I want to go left or right, but I can use a mentor to help me pull along a little bit further. But I don’t have to look up to a mentor as someone whose the end all be all guru on how I’m supposed to live my life and I can, that gave me a lot of freedom when I had that realization that I can go to them for advice, and then take it with a grain of salt. 

[00.30.29] Steven: That’s huge. They don’t have to be your everything, but you can still get some guidance from them.

[00.30.34] Matt:    Yeah, they can shed some light and that’s really what they’re there to do, to give you their insight and like, well, when I tried that, that didn’t work, you know, okay, cool. I won’t do that or they they’re really there to help me uncover, I don’t know, part of things. There’s always that gap of what I know and what I don’t. And they’re there to point out things I don’t know yet. Not telling what to do per se, but to tell me things I’m not aware of, you know, and then I can choose what I want to Do beyond that once they get their insight. 

[00.30.59] Steven: I can really appreciate that. We’ve made it to the final question we’ll finish on this purpose, what drives you to live your best life every day? 

[00.31.06] Matt:  Whoo. The joy of living my best life, the challenge of what it feels like to be doing my best in. That’s what what pulls me along with what makes me want to do my best, is the joy of doing my best and what things feel like when I am doing my best I can question myself if I have that’s number one, number two inspiration to my kids to show them about what living a big life looks like. And also just partnership with my wife on living a bigger and bigger life with her. So those are my inspirations is my y’s, me, my kids, my wife. 

[00.31.37] Steven:   Oh, that’s, that’s beautiful. And you guys should definitely check out the episode with Matt’s wife, Liz Faircloth and we’ll link to that in the show notes as well. It’s a really good episode. She’s the smarter Faircloth,

[00.31.51] Matt:         Listen to that one Faircloth 

[00.31.52] Steven: You guys are both pretty impressive. 

[00.31.54] Matt:          Thank you.

[00.31.55] Seven:        So where can people find out more about you or Get in touch. 

[00.31.58] Matt:   So two different ways they can, they can go to derosagroup.com and they can pick up the book and they can hear more about us. And they can also hear more about our insiders program which all of our investors remember of but they can also join that as well. Then if they want to check that out, they can just pick up your handy dandy cell phone and send the word derosa to 66866. And you can get some more information on insiders and you get a huge basket — a huge bunch of giveaways and free stuff by sending that text. 

[00.32.36] Steven: Awesome. Well, this was so much fun. I want to leave you guys the way that I always leave you in to live a life worth inspiring others and you can do so today by taking some of what Matt shared with us and applying it directly in your business and your life. So thanks so much, Matt. I look forward to the next time we get to do this again. 

[00.32.51] Matt:    Thanks, Steven. Great meeting. Great to hang with you. Let’s do it again soon. 

[00.32.58] Steven:    As we mentioned at the top of the episode, our operating partners in the commercial multifamily space have agreed to invite new investors into some of our future deals. And in order to have access to these investments, remember, you first have to register over at the investormindset.com/invest. This will get you access to lots and lots of great training, that’s going to help you better understand what makes up a great investment in the multifamily space. But most importantly, when we have one of these new opportunities available, you’ll be the first to know and you’ll be in line to make a decision to be able to jump in because most likely, these will be oversubscribed and sold out very, very quickly. So to get started, head over to the investormindsset.com/invest, and I look forward to seeing you on the inside. 

[00.34.56] Narrator:  Thank you for listening to The Investor Mindset Podcast. If you liked what you heard, make sure to rate, review, subscribe and share with a friend. Head over to theinvestormindset.com to join the insider club, where we share tools and strategies from the top investors and entrepreneurs and how to take it to the next level.