Matt, Owner of 70+ Properties, Talks About Real Estate Investing, Partnerships and Charity Work

Zach Johnson

Dylan Carpenter

Matt Andrews

Episode
85
|
1

Matt Andrews

,

Founder

REI Collective
Apple PodcastsGoogle PodcastsLive on SpotifyLive on Youtube

Matt Andrews is a real estate investor, serial entrepreneur, growth hacker, film producer, and #1 bestselling author. He is best known for the Real Estate Investors Guide book series, the Real Estate Freedom Podcast, and founder of Real Estate Freedom: Real Estate Investment Training.

Episode Summary

TAKE AWAYS

  • How Matt is scaling up his real estate investing portfolio by owning 70+ single family homes
  • How he was able to use his expertise to create a $50k mastermind
  • How he creates partnerships and relationships to elevate his business

RESOURCES/CONTACT:

Transcript

1
,
Episode
85
Transcript

Dylan (00:00):

On this episode of the rich ed for ed podcasts, we have Matt Andrews from REI collective, who was an absolute machine in the real estate investing side of things. We dive into his family mastermind on how he kind of groups high level individuals in the real estate investing game and how he sells high ticket offers and that 50 K range. We also kind of dive into how he built partnerships with his communities and how he kind of creates financial opportunities that kind of pay, you know, passively throughout the years versus a quick win there. Make sure it's tuned in this. One's super awesome. If you're into building relationships and partnerships, you don't want to miss out on this one.

Matt (00:37):

I can tell you where people in my space, um, really get messed up is, um, just, you know, a lot of these people come out of nowhere and then try to, and, and maybe they're truly successful or maybe they're not, you know, but they come out of nowhere with no context and you see them on Facebook all the time, right? New, new people on Facebook and Instagram all the time. And in every conceivable niche,

Speaker 3 (01:13):

[inaudible]

Zach (01:14):

The rich and poor ed podcast where we break down the financial principles that rich advertisers are deploying today to turn advertising into profit and get tons of traffic to their websites without killing their cash. These advertisers agencies, affiliates brands are responsible for managing over a billion dollars a year in ad spend. You'll hear about what's working for them today. They're rich ads and we'll roast their Epic failures from crappy ads on the internet with core ads. Let's get into it. Welcome to another episode of the rich dad. Poor dad podcast is your host sack Johnson. I'm with Mr. Dylan Carpenter. Dylan, you ready to talk about some real estate marketing today?

Dylan (01:51):

Shoot. Yeah, man. Everybody needs that kind of education.

Zach (01:54):

Yes. Well today's guest has crossed the bridge. He's not only, uh, built a amazing, uh, passive portfolio of investment properties. I don't even remember how many as I'm going to ask him, but I think it's like a it's over like 30 or 50 something, but he's also, uh, he's, he's done amazing things in the real estate education space, um, was the old client way back in the day and in my agency days. And, uh, is now the founder of the real estate. What is it? A family mastermind? You can go check it out at REI family reunion, uh, dot com. Uh, but he's also like a really fun guy to talk to super, super laid back, uh, and chill out. I'm excited to, to get into it. So Matt Andrews, welcome to the show right on man. Well, Zach, thank you so much for having me and Dylan. Uh, this is awesome, man. Excellent talk some real estate. Let's get into this man. How many properties do you have? Like right now? Let's talk


Matt (03:00):

About that. Well, um, yeah, rental properties, mostly single family homes. We've got, uh, somewhere between 70 and 75, um, rental properties in Florida and Michigan. And, uh, got, got some in Ohio and a little bit in Indiana, mostly Florida. Um, and, uh, and Michigan and we still do deals every month. Uh, I try not to do too many deals, but the stuff super easy that we can make easy money on. You know, I'm a, I'm a real estate investor. I still get some deals done, but, um, but really try to work on higher level deals and, and do a lot, few, uh, do a lot lower volume than I did back in the day. Yeah. That's how many rentals we got and, uh, that gives us a lot of freedom to, to get into a lot of other things, as you know.

Zach (03:46):

Yeah. Now tell me what you're up to now in the real estate education space and with your mastermind. Yes.

Matt (03:53):

So, um, I run a group called the family mastermind and that's a group of real estate investing educators, software developers, uh, platform owners, community owners, uh, tribe builders, uh, basically, however you want to look at it. It's, it's the group that kind of trains the mom and pop real estate investors, right? So it's a, you know, it's a, it's a group of influencers and they're the kind of the teachers trainers educators that train that entire space. Uh, so that definitely gets into the world that you guys are familiar with, which is digital marketing. Right? A lot of, a lot of I'm sure you guys, and a lot of the listeners have seen people on Facebook saying, Hey, flip properties like me and make a lot of money. And some of them are total goons, right. And some of them are, are super cool and really authentic and running really cool businesses where they're really helping people at a high level and there's everything in between, but that's kind of the world that I exist in there. So the group that I run called family mastermind represents a really the highest level of those operators. The people that really create and own the software companies that help investors flip properties or, or own the, the, uh, educational companies that train that's. So

Zach (05:07):

My exposure into that space was way early on in my career. Uh, Dean Graziosi was a client of mine and Phan Merrill was a client of mine. And so that was like my total understanding of like them just running ads and these like hyper geo-targeted areas, like in every major city across the U S, which is like, I would hate to run that ad campaign Dillon, like you imagine just saying like running hundreds of events a year and you have to run it run and start an ad campaign like two weeks before the event. And

Matt (05:42):

It just sounds like those guys crushed that model, you know, and they, um, they call it the, uh, well there's different models, but some of them call it the preview model where they run ads strategically at a certain time, right before they're going to do a free Saturday event, which that Saturday event is the preview for the three-day event. And there's a very strategic way to do that. You know, the company, fortune builders, which is probably the biggest real estate education company in the world, which is, uh, owned by Phan Merrill, who was on flip this house for many years, right. Used to be a NFL player. Um, he, he owns that company and they do that in markets all over the place, like wherever you are, right? Like probably in both the cities where you're at right now, there is a fortunate builders, something going on, you know, and they remodel more and more into digital to, and more and more into Facebook. And so it's an interesting space, you know, it's an opportunity based niche, right? It's like a lot of other financial niches. Well, you're the first guy in this space when I was like, Oh, here's a guy who

Zach (06:48):

Really prioritizes his family and his life.

Matt (06:51):

Oh, Oh for world domination and like massive scale. I mean this yeah. Fan and Dean, those guys are just marketing machines. And, uh, I really just appreciated how you just built your businesses around, uh, your, your lifestyle first. No, I've changed my tune, not where it's at. I left my kids and my wife and I'm like, man, it's all about money for me now. I love it, dude. Everybody who doesn't know me and is now thinking about what a, what a jerk, I'm totally, I'm more all about my wife and my kids than I've ever been. And, and, and thank you Zach for saying that because I've built businesses, you know, I own multiple businesses, mostly in some kind of a real estate related space. Right. But I own multiple businesses and I've built them to have that freedom. Right. I've built them to be able to spend the time with the people I want to and operate the businesses that that's all do very well and make really good money, but do it on my schedule on my terms. And that's really what it's all about for me. Yeah. That's super cool, man. So let's get into it. I want to know, uh, in this particular space, you're, you know, you're advertising to the,

Zach (08:12):

Uh, what, what would you say like the weekend, um, real estate investor or the aspiring real estate investor?

Matt (08:19):

I'm like, uh, you know, I don't know why we call them this necessarily. We call them mom and pop real estate investors. So, you know, a lot of these are folks that are watching a flip this house on TLC or discovery channel saying, Hey, wouldn't it be cool if we did a house flip and made a little extra money too. And so it's a lot of people who probably don't know what they're getting into and don't know what watching the TV show that it's not, you know, when they see a nicely edited 42 minutes or whatever, that a, that's not exactly how it works, but, um, but a lot of people get into and get interested in it for that, for that purpose. And it's a, it's something you can do on the side of a job. It's something you can do. Part-time, it's something you could do it, uh, on nights or on weekends, you know, it's one of those things, um, that is an opportunity that's, it's really a lead gen based opportunity.

Matt (09:08):

It's about getting leads of good deals and then having a good marketing plan for how you turn that deal that you found into money in the most efficient way. Right. So it's really a pure Legion, um, play real estate investing in general, really. Uh, so, so the field, the education field that serves that, uh, that world is largely a lead gen based educational field. It's how do you get leads from, uh, you know, PPC, you know, how do you get leads using Facebook, or how do you get leads using direct mail, or how do you get leads using this automated software that scrapes, uh, you know, public data and delivers leads, you know, based on certain characteristics that you could then send direct mail on and get leads for motivated, uh, home sellers, you know, so it's all, it's all really Legion based. And then there's everything that comes after the lead gen, which is all the rest of the things that really make the money.

Matt (10:07):

But a lot of the industry I'd say 90% of the courses and the education is kind of geared towards lead gen. And to that end, there's a lot of people, uh, you know, coming into the space that you guys are experts on and that's, you know, starting to use Facebook and targeted ads for leads for buyers for real estate and for sellers. And that's a little bit of a new frontier because no, one's totally mastered that yet, but, um, but that's, uh, that's gonna be the next, really big space. I think the next big frontier for investors where traditionally it's been direct mail or, um, you know, some other, you know, uh, you know, bank, a bank relationships like that, other sources of properties. Right. It's interesting. It's going to be an interesting transition to watch how, you know, Facebook and those kinds of things, really in a large level play into how people get rid of their properties, you know? Yeah.

Zach (11:04):

So break it down for us. Let's dive into this rich ad campaign. What's worked for you

Matt (11:11):

Over the last couple of years in this space.

Zach (11:17):

Yeah. What we were talking about,

Matt (11:18):

You and I were talking about this before and Dylan, Dylan was in on this conversation too, when we talked before. So this is not the most recent ad, but I wanted to share something that worked. That was pretty cool. And that was a lot of fun. We had a product called, uh, auction flipper. Right. And I, I don't make many products that are actually my products anymore. I used to be like, you know, Matt Andrews used to be kind of the face and used to be a guru. That's, you know, why is that? I feel like products like me do this. Like, you can be, you can be like me, if you do this like me, it's like, you know, and, and I, I kinda just got out that, although I'm not against that, it's, um, it's good for what it's good for. And I built a, a big list off of that.

Matt (11:59):

And I have a lot of assets that come from that. Um, but I like creating strategic partnerships a lot more than I like creating the actual product. So these days I'm way more apt to buy a company that already has proven products and, you know, help strategically grow that through creating other partnerships with other companies, either that I own, or that my friends own. Um, then I am actually making the product, if that that's, um, that's just where that's more fun to me. That's kind of where my creativity is going, is into business structure and stuff like that. So, um, but I still love, you know, I still love the product creation market. I still run masterminds full of the most talented product creators and the most creative marketing minds in the real estate investing world. You know, so I'm, I'm in that world every day.

Matt (12:52):

I just kinda got out of, you know, being the guy that's, you know, at, you know, at every step of the funnel, talking to you and being the face and being the one that wanted to do it. Um, but, uh, where are we going with that? Well, right. Yeah. Real estate, uh, what was it called? The auction flipper. Yeah. Auction flipper, auction flipper. And so my buddy Antonio, uh, who is a big house flipper, um, lives in Florida, but flips in Virginia flips in a few other markets, a really, really cool dude, um, is also a great musician, uh, you know, can write songs and record and produce. And just like just one of these guys, you know, he's one of these guys that you're like, who is this guy? You know, who's getting houses and makes money as a dollars makes albums on his, you know, in his spare time, stuff like that.

Matt (13:39):

And, um, and a really smart businessman and a good friend. So we had made this product together because he does a lot of, uh, what we call virtual flipping. So he goes on sites like auction.com and hubs, zoo, and zone.com, which are all auction sites in the real estate world. He buys properties at auction and then immediately sells them to ambassadors, does like quick transactions. We call it virtual wholesaling. So he might only have his money tied up, um, for like a day or two before boom, he gets it right back. He buys a property for 70,000. He quickly turns it around, sells at first 79,000. And in one day it makes nine grand and he does tons of those types of transactions. Right. So, so we made a product around that, which is, it was cool to be able to teach students that we made a product around it.

Matt (14:27):

And we had the traditional webinar and we had some ads on Facebook and it converted a little bit, but not fantastic. And then I just decided, man, let's have fun with this. You know, like you're, you know, Antonio, you're super talented, you've got all these skills and in the music world, and you got this ability to, you know, bring in some people that could produce something really cool for us. Um, we decided to make a music video and he full on wrote an entire song about flipping auction properties. Uh, that just made it like, you know, like it was, it was half instructional, half ridiculous and all entertaining. Right. And really, really like, like way better than I thought it was going to be when I said, okay, sure. Let's try it. You know, I thought, you know, we have some really talented guys that would do this for almost nothing guys that, you know, you would normally pay 20, 30 grand to have produced a video like this. And we were able to do it for pennies, you know, two or three grand, I think. Um, and because they were friends, so we went ahead and made this music video way over the top, Antonio, you know, and money on his grill and, and open and open it up, checks, you know, deals that he's done. And just like sitting in his lawn chair and his robe

Zach (15:35):

And just like this happened. And the next

Matt (15:37):

Thing he's like driving is, you know, I forget what car he was driving, but some fancy car and he's out there, you know, driving his race car and doing this and that or whatever, and just kind of big ball. And, and then they threw me in at the end and it's ridiculous. I'm like, you know, like the whitest guy ever,

Zach (15:52):

Or like trying to dance at the Antonio, I'm trying to be like, yeah. You know, and it was like heritable, absolutely awful

Matt (15:58):

That it was good. You know, that kind of thing, you know, I was like, who is this guy all of a sudden at the end of this video. Um, but we decided to run that video too. We had, you know, he had a list, I had a list, uh, we've been building a list already, uh, for people that had attended the webinar. And then we did some look alike audiences, and this was the, this was when many chats first came into the world as well. So we hooked up many chat for the first time. I think we were probably one of the, one of the first people. It was probably within weeks of it being, um, you know, usable on Facebook and plugged in a, you know, a process there. And then we just drove a bunch of traffic to that music video. And we asked him the copy for some kind of response that then triggered that mini chat sequence.

Matt (16:42):

Right. And that ended up bringing thousands of buyers into our pipeline and, uh, continued to kind of roll out sales for, for months in the sequence, because we had like a six month sequence built out in many chat, uh, which was tied in with a six month sequence in infusion soft. And so the sales just kind of continued to roll, but, uh, but it brought in new people at a, at a really fast rate. Um, and although, like I was telling you guys it, it made money and it did well. Um, and the cost per, or the, uh, I guess the, the lifetime value of that buyer was a little bit lower through those channels, but we brought in tents

Zach (17:28):

Times more, you know, so it was like

Matt (17:31):

Trade-off in it, but it worked really well. And then we had a whole after six months, we had a whole, um, upsell sequence of different kinds of products that we would sell to them. There were, that were kind of unrelated if they didn't end up buying that or liking that. So there was probably actually, you know, we probably picked up almost full value if you really looked at it, but that was a fun one, you know, like we just let's have some fun with it. Let's use some new technology, let's take some chances. And, uh, and that worked really well and, uh, and drove a ton of leads. So that's definitely example of a rich ad.

Zach (18:00):

Oh, so right. Like you kind of get these winners that totally scale in a massive way, but the LTV is like so low, cause you're really optimizing for, uh, really like the lowest common denominator

Matt (18:17):

For conversions. You kind of just walked away from that. We're just like, look at this. Yeah, yeah, totally. And now you're, you're, you're,

Zach (18:27):

You've kind of like completely moved away from that model where you're just like, yeah. I only care about like really high LTV stuff. Right. I want to buy businesses. I want to do $50,000 mastermind.

Matt (18:38):

You're all about the high ticket now. Yeah. But it's like, but I love that. I still love that model. And I love it for, especially for certain types of businesses. And obviously you guys work with, with, uh, you know, you with your own company and also with all the companies you partner with, you guys are great examples of the types of businesses, you know, they can really flourish. Um, and my mastermind world can too. Um, I've just so far, I've built most of that, very organically, very word of mouth. And, uh, and it's a small enough, you know, my masterminds are a small enough enterprise that I've been able to do with it that way. But if, I don't know if I want to go up to the next level, eventually, eventually you've always got to go to cold traffic. If you're trying to scale anything, eventually it's going to come. So what's the secret

Zach (19:25):

Selling a $50,000 mastermind. Like it, it is a kind of this like family, big boys club, like you're targeting some pretty successful entrepreneurs. Um, so is it just kinda like, Hey, here's

Matt (19:42):

Throw down 50 GS or, you know, like, what is that sales process? Uh that's no, you basically did it. I basically walk into like a golf club when they're putting on an event. That's like, you know, a big charity event and I know who the richest people are walk up and I slapped down, uh, an application and I say, say, fill it out right now. And then they fill it out. And it's amazing how it works. Like I'll pick up 20, 30 members in one Swift, like, man, that would be awesome. Okay. So I'll tell you exactly how I do it. I, um, you know, my, my groups, you know, let's take the family mastermind, you know, for instance, right. Um, that's a group that, um, I'm building two 50 businesses. The purpose of that group is to bring together real estate, investor educators, product creators, uh, service creators, software owners, whatever it is, um, that have a high degree and a high likelihood of being able to collaborate and make money and plus each other, right?

Matt (20:52):

Like that's the purpose of that group. So they pay a membership fee to come into it, but that membership fee really pays for the party for the most part. And then I make my money by helping them make, by helping them make money with other people in the group. Right. And so then all of our interests are aligned. So the way, so take one step back. Now, the way that I find those people, my marketing strategy, my target audience, um, I laser focus on exactly who I want. Right? Most of the people I'm looking for that I want in that group are running seven figure businesses. Many of them in the real estate investing world, actually flipping properties, doing apartment deals, buying multifamily deals, owning properties, and also own an education company, putting out courses, speaking on stages when that's a thing, um, you know, doing webinars, you know, that type of thing and doing a lot of digital marketing, like, yeah.

Zach (21:48):

So how do you really, I mean, these are, there's a lot of ego in this, in this sales conversation, right? Cause they're their peers, there's their colleagues, they're your affiliates are your partners. Yeah. And so the indoctrination of a funnel, you know, from an ad to a video webinar, to a consultative sales call is, is very formulaic. Right? And, and, and that sales process is you're agitating a pain and they pretty much have opted in via application to schedule a strategy call and, and you're there to qualify, qualify and, and offer them an opportunity. Generally it's, you know, a coaching opportunity of some effect in your world is that is not it at all. Right? Like these guys are not like watching a VSL and then say, I love that Matt, like, here's, here's my money. So how do you, yeah. Not from

Matt (22:49):

This, no, I've built masterminds that are to teach people how to flip properties or how to grow their property flipping business. And that's what you just described is exactly what we do. Right. It is hands down, like to the T exactly what we do application into a strategy session, which is really a selling session into the program or into the event or whatever it is. Right. And quantifying, you know, how, how it's, you know, mutually beneficial. Um, but with this it's, yeah, it's much more laser targeted because the focus is not get members in and monetize by membership fee. The focus is get people in that fit the spirit of the group. And when I say spirit of the group, I mean the collaborative nature of the group, you know, so if I find people running seven figure businesses, and it doesn't have to be seven figure out, and there's, there's a way of one member that does, you know, 400 K a year and a 9% margin and might be the happiest person in the mastermind, you know? And then we got people and then we got people running $40 million businesses. And

Zach (23:54):

How do you go from, what is

Matt (23:56):

This? Like, what is it

Zach (23:58):

That conversation look like? What I'm getting at is like, how do you get permission to,

Matt (24:03):

To sell and then work here? Right. So it's all about developing the right, you know, call it whatever you want, sphere of influence, Rolodex, contact, base, whatever it is. It's all about knowing the right people. I mean, all businesses to some extent, right? Yeah. You know, you guys understand one of the only true hacks to marketing. Every other thing, every other thing that's not digital marketing is all just relationships. The other, the whole other part of it, that's all businesses is relationships. And ultimately that's the stuff that really makes the most money. Right? You guys can juice with digital marketing, what is born with a relationship, right? So like what you, what you have, what you offer is the gift of like scalability to a great idea of born out of human human contact. Right. So, so that's why it, that's why it works. That's why it makes sense.

Matt (25:01):

Um, so what I focus on is getting people in, through making it a no brainer because of the other people that are in the group and what they can do with them. Right. So that's all I really sell. What I really sell is look, when you're a part of this, here's instantly how it makes sense for you and your business and where you are, right. In some cases is because they're building something and this will take a five-year thing down to one year because we've got 10 other people in the group that have done it and are right there and will willingly share all the shortcuts and boom, they just, they can hit it on overdrive. Maybe that's what I'm selling, but it's people in the group that provide that. Right. Um, maybe it's, you know, uh, somebody wanting to, you know, prep their business for sale, you know, they're finally get an exit, you know, and there's a few people in the group that have done that successfully.

Matt (25:52):

And so they joined the group to kind of, you know, have a group of advisors around them during that process. So there are people in the group that could aid and someone like that. So I would sell that to that person, but really the process is people that are already in the group, bring me other people that they think fit in the group. Right. So that usually happens by, you know, by a high-tech communication process called text. Right. And I get a text and it's like, Hey, you know, one of my members says, Hey, Matt, this is so-and-so that I told you about. They run this company that does this. Um, I told them about family mastermind and I think they would be a really great fit. They're really eager to talk to you, you know? And that's the way I direct people. Very simply when you're running a group of right now, 45 businesses, and you're only trying to grow it to like, and you want it to be the right ones, you can do it like this.

Matt (26:46):

Right. If I was trying to grow a 500 person group, I wouldn't be able to do this. I'd have to go an application process. You know, I'd have to go a bigger filter, but members that I trust and I've already vetted that are bringing me people. Now they've done a text introduction, super warm marketing, right? Like this person wants to talk to me. They've been brought to me basically pre-vetted and I've been built up the right way so that when I have a conversation with this person, um, it's kinda clear we're having this conversation because I'm vetting them to see if they should receive an invitation to the group. And that's really good positioning to go into a phone call. Um, and that's really the whole intake process with them. Or I immediately shoot their info to my assistant who plans a really quick meeting with them.

Matt (27:33):

We don't do a whole bunch of Calendly stuff. If it's somebody that somebody has brought to me, one of my current members, I fast track it, you know, myself or with my assistant. And they manually make that appointment, um, right away, you know, and usually within two or three days, it happens. And then I get on the phone with them. We have usually a 30 minute phone call. If it's not a fit, it's usually a 30 minute phone call. If it is a fit, it's usually like a 45 minute phone calls sometimes even longer. And, um, and if it's a fit at the end of that all, um, I offer them the chance to join and tell them what the deal is. Uh, you know, and, and if they say they're ready to go, which most of the time when they come the right way, we've had a good conversation.

Matt (28:16):

And I made it clear, you know, what the immediate value is. Uh, but also the real long-term value. Then it's usually a pretty easy sell, but it's that easy because we've targeted, you know, people know exactly in the mastermind, they know exactly who to bring me, cause they're bringing their counterparts. They're bringing the people they already work with. You know, so if I were to go out and find some of these people, which I did in the beginning, I would just laser target the people I already know in the industry. Like I already know who my next probably five or six or seven members are going to be to get me 50. I already know who they are, you know, and I'm just going to have three or four conversations with them until they figure out that it doesn't make sense for them not to be in the group.

Matt (28:56):

You know? And so I think if you laser target enough and you create something of value, that's what you can do. And if you're not trying to grow it to thousands and thousands of sales, but a relatively low number, like 50 a of recurring high ticket sales, right. You can build something really, really nice. But the thing about this group is, and I've run other groups where, you know, the, the whole idea was to get hundreds in, um, and there's value in those groups too, but keeping it small and doing that for the purpose of my real pay out on running a group like that is in participating in business with the members. Right. So I bring people in that I think have a high collaborative affinity with other members, but also with me. And so I fund some members, businesses, uh, there are new businesses that spin off and, you know, there are new software companies that are created there.

Matt (29:54):

And I get a piece of those as an advisor. Um, you know, sometimes I just, you know, I make a lot of deals where it's just like, great, it's great for those two members. And I just basically kind of put it together and just let it go. But when I do that and when I create the atmosphere to do that, and I bring in the businesses that can do that with each other, then it's a real easy sell when I've targeted. Right. Cause it's like, look, you're doing this and this, you're trying to build your software company up to this and this, I've got five people in the group that have done that. And about 10 other people that could easily white label your application that you've created, um, you know, you come in and I don't see any way you don't do another three or 400 K this year, just on membership collaborate.

Matt (30:37):

And when you make that pitch to the right person, then it's just kind of a no brainer. So you're actually kind of selling, um, almost, um, yes, you're selling partnerships. Yes. You're selling people in the group and access, but you're also selling partnerships, right? Like, Hey, this is a channel to grow your business. This is a marketing strategy. I would totally build relationships with these curated, you know, people, and this is the impact, you know, you do this deal, this deal and this deal, and I'll help you navigate those deals over the next 12 months. And we think you'd be a good fit because you're already pre-qualified them. And so they can say, Oh yeah, okay. If I do one, two or three of those things, it has nothing to do with, Matt's going to teach me this. Man's going to sh show me this as much as you're really just pointing out access

Speaker 5 (31:26):

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Matt (32:47):

That's great. And so, yeah, and it takes the burden off me of being like, you know, cause on the real estate masterminds, I've run, it's like, let me show you how to flip properties. You come to me to learn how to acquire rentals or how to rehab, you know, houses and make money or whatever it is. Um, this is really different in that they're not coming to learn from me. Will they learn some stuff from me? Sometimes probably I learned stuff from them yet. Probably, you know, and like I'm almost definitely right, but my value and what I'm bringing to the table here is more in my ability to get the right people in the room. Yeah. If I get the right people in the room, um, and then I can have a staff and a process and uh, just, and literally put the right physical venue behind the right people like that, to where the atmosphere is perfect for discussion and collaboration and brainstorming, and just puts you in the perfect Headspace for doing that.

Matt (33:49):

Uh, it's unbelievable what comes out of it. I mean, it's absolutely like unbelievable. And so then the thing begins to be the whole thing that I do. What I spend most of my day doing is like, you know, I spend an hour a day on my property stuff, right between Florida and Michigan and the properties that we do or the projects that's like an hour a day. And it's like maybe five hours a week. Sometimes not even that the whole rest of the day honestly is. Um, and it's not, not like a hectic schedule or anything. I'd get it all done between my kids', uh, school hours, but it's a vetting opportunity. I mean, that's what I spend more time doing than anything else is vetting opportunity. It's like this, you know, this guy over here wants to sell this lending company, which would perfectly fit into this over here.

Matt (34:38):

And I can buy this linen company with this partner over here in my mastermind for this much. And if we paid that much and did nothing, but take the list from that company and use it in this company over here, we'd make four X just on what we bought the company, but that's not even the best use of that first company that we just bought, you know? And so just deals like that, that spring up out of being at the center of a lot of businesses and seeing the ins and outs of a lot of businesses, kind of being the first to know when there are breakthroughs and that type of thing, it just puts you in the, uh, kind of in the first position seat, you know, the, the venture capitalists seat almost. And so that's the biggest thing I do, you know, I try to purposefully and, and put a process behind betting opportunities, growing contacts, growing relationships, targeting the right people for, um, you know, for groups like family mastermind, but also some other groups that I own and run.

Matt (35:32):

And, um, and then trying to, as, as I can push the communication process in a constructive way that informs the members, but also me of where the synergies are, where and where we're really where the low-hanging fruit is. I'm looking for the stuff that's super easy. It's like, Oh, you were about to spend 4 million on that, Oh, your friend over here already made that he'll license it to you for a fraction of that, you know, and boom, there you go. You know, the whole, whole thing that opens up there, I love those kinds of things that happen, you know, when you have good communication going in a group. So spending more time, you know, even in real estate, you know, it ends up going more and more to that as I put real estate deals together, I liked doing them with other people. I like bringing in other people's money or expertise or just whatever it is because that's fun, you know? Um, and I still do a lot of deals just by my just me and my wife too, you know, but I liked doing bigger deals with more people and, and kind of bringing a, you know, a, uh, a pooled genius to the table when I can,

Zach (36:38):

What did it look like? I want to hear about this poor ad. Like how would, if I were to sell a $50,000 mastermind, I want to hear about something that you've tried to bring in new mastermind members

Matt (36:51):

And you would say, Hey, if you want to go start a mastermind, like

Zach (36:56):

Very high ticket, one very curated at 50,000 folks, what would you say not to do in the, in the very first

Matt (37:05):

I haven't had any failed and I don't mean this in a cocky way, but I haven't had any failed ad campaigns in the mastermind world because I felt them all the way. I just kind of told you there, you know, uh, and I had credibility when I built other ones in the real estate investing kind of in the house flipper world, where I was teaching, where I was teaching people how to flip houses. I brought credibility there, um, with a lot of the deals I've done and how many years I've been in the business. So, um, so that stuff was congruent and worked, but I can tell you where people in my space, um, really get messed up is, um, just, you know, a lot of these people come out of nowhere and then try to, and maybe they're truly successful or maybe they're not, you know, but they come out of nowhere with no context and you see them on Facebook all the time, right?

Matt (37:59):

New, new people on Facebook and Instagram all the time and in every conceivable niche. And, um, you don't know how they got there. You don't know who they are. Exactly. Um, and they don't give any real proof of, or track record of success. Right. There's just nothing like that out there at all. And so the people that I see, like really messing up the most are the ones that I think are just putting out flashy ads that get a lot of people involved at a low level, at a low ticket price. But those people never go up the funnel because it's all based on kind of smoke and mirrors kind of approach. Right. And anything that I've done that didn't really resonate. It was never, it was never because I I've never like launched ad campaigns that didn't have integrity, but it was just because there was no heart to them.

Matt (38:47):

Um, or it was just a, there was no story to them or there was just, no, even though they weren't inauthentic, they weren't like uniquely authentic, if that makes sense. You know? And so I think anytime I get away from that, so the approach for the masterminds and going laser targeted straight to people and having those phone calls, I haven't, people brought in warm like that. Um, that's about as, you know, as warm as you can get. Right. But through my 20 years of business, I've done some stuff that, that hasn't worked. And there's no doubt about, you know, I've done a lot of ad testing and a lot of different ways. I mean, I started my house flipping business on bandit signs. Do you guys even know what signs are,

Zach (39:27):

Are those like the things you just see when you're driving by like on like a random, like street corner,

Matt (39:32):

They're illegal signs, man. They're illegal signs. They are right. It's called let's call them what they are. Right. In most places they are illegal. Right? Like you don't own that corner and don't have any rights to, to advertise in that corner. Right. Yet. That's what I did early in my business. Right. And I had, you know, I mean, if you lived in Tampa, Florida during a certain time period, you definitely drove by multiple signs of mine every day, all the time for about seven, eight years probably. And, uh, that's how I started my business. So, you know, I'll buy your house today and then there's the phone number, you know, and it gets tons of, you know, you, you put it up in the right spot. It's like high traffic, uh, I traffic, Facebook traffic, you know? And so, um, so bandit signs, you know, started my business, getting phone calls from people who are desperate to sell their house because they saw it on the side of the road.

Matt (40:26):

You know, I'm the same way they would call, you know, a lawyer if they were suing somebody, you know, and they saw, and they saw it on the side tuition painters. That was my, that was my abandoned sign business in college. I had a, like a little college painting business and like my second year of college over the summer. And I did bandit signs all over, man, it's the poor man's advertising. So I started my business doing that and literally at certain times, um, because we would go out, we'd go out. And me and my roommate at the time, we'd go out in the middle of the night. And the reason I would take him was because he was super tall. And if I, I'm not that tall, I'm like five eight. Right. So I had to, like, I would have to get on a step ladder to like put it up on a, uh, on a telephone pole or something like that. Right. And she could just walk out there guys like six, eight, he could just walk out there and just, boom, boom.

Zach (41:15):

Like he jumped back in the car, we'd go down to the next corner and boom, boom, boom.

Matt (41:19):

You put them in. And so I started my business that way, but we had people chasing us down the street, um, at, at, at one point. And I remember thinking I was like a year into my real estate business and I'm being chased down the street by like a Avenger. And, um, I like a cop or anything like that. You know, just somebody who like solace doing it has been and seeing signs in their neighborhood and is coming to get us, see it out, like chasing us down the street. And, uh, it's like two in the morning or something. And I remember thinking, man, this is what it takes to be a real estate investor, I guess, I guess what it's about right here, you know, like literally getting chased down the street, but that's like, you know, that, that was like black hat. Right.

Matt (42:00):

And so it's kinda there. There's definitely a, uh, a, you could put a, you know, a funny comparison together with digital marketing is like, you know, black hat stuff, you know, my work for a little bit, but ultimately it ends with somebody chasing you down the street in the dark. Oh my gosh, Facebook policy now. So I want to talk about some of these financial principles I've, I've met. I feel like, you know, the way that you operate, not only your, your real estate business and how you're running your, your mastermind businesses, you let you look at things very differently. So how would you, uh, I guess, like, what are some guiding principles for you, um, as you're, you know, managing the day-to-day, your businesses managing cash. Yeah. And investing in new new projects. I mean, just from a real general standpoint, try it, try to do things, whatever you do, whatever your genius is, whatever business you're in.

Matt (43:02):

Try to do things today that pay off, uh, over and over again. Right. And so for me in my world, it's real estate, it's it's, uh, rental properties, you know, that's the passive income. I, I have rental properties that make me money today, over and over again, and continue to rise in value and make more and more money each year, as they've raised in rent, you know, over the years, some of those properties I've had since 2002, some of them, you know, um, most of them, I got probably after the dip and like 2008 to 2012 is probably where I picked up the majority of them. They've all tripled and quadrupled in value from where I bought them. So being able to do something now that pays off in the future property, I think is the best way. You know? So if you are running a business, if you're running ads, you're making money, you're doing webinars or you have products that you sell or whatever it is, right.

Matt (44:04):

And you are killing it with digital marketing and you're having these six figure months and stuff, take some of that money, take my advice, take some of that money and put it into some property that, uh, that you can hold long-term because you can make money in business and you can make money doing quick flips in real estate, but real wealth. One of the easiest ways to real wealth is long-term holding on, on real estate. If you can hold real property, you know, if you can hold a real property for the longterm, you will always, always do well. And I see a lot of people coming into, not just my space, but really, you know, people in the digital marketing space. I mean, I've been in, you know, a war room, you know, Ryan Deiss and, uh, Roland Frasier's mastermind. I've been in war room and I've been in other rooms and done, you know, joint ventures with those guys been around that world for a long time. I'm around a lot of great marketers, a lot of smart marketers, uh, and they're smart with marketing, but they're not smart with delaying gratification and putting some money away and saving, saving some money and figuring out, you know, some, at least a little bit of financial IQ, you know,

Zach (45:14):

And do you have like a rule? Do you have like a role in terms of like, Hey, I'm gonna make X amount of dollars in revenue. I'm going to target X amount in profit and here's how much like I'm going to, or I'm willing to reinvest back into the business.

Matt (45:28):

Versus it kind of depends a little bit on the business because now I'm into so many different businesses, the, the real estate business, for example, like the money that I make from rental properties and real estate, I put all back into a fund for more real estate. Right. So that's like a hundred percent. So if you look at that as a business, it's like, it all goes back in. I don't even take income on it. It just goes right back in. If there's another a hundred grand builds up in there and I could buy a property for a hundred grand that fits my criteria, I'm going to do it. And then boom, it becomes a part of the pool. Right. Um, but then there are other businesses that I strategically acquire, um, for growth. And we put, you know, most of the money back into it there too, you know?

Matt (46:11):

So as far as an actual strategy, no, like I know what I want to make individually. Like I know what I want to have in my bank account, you know, to live. And I know what kind of investments I want to make post tax, you know, that businesses need to pay me, you know, that like, um, but as far as the individual businesses, they're all different. And many of them, many of the stuff I do now, it's really, it's kind of run by a different CEO anyway, it's run by one of, you know, two or three different CEOs that I essentially work with over a few different companies. So, um, so as far as the formula there, no, but I can tell you this, I, everything I do is strategically because of its alignment with something else I do, if that makes sense. So every business that I, and I, I shouldn't talk like I've acquired hundreds of businesses.

Matt (47:02):

I own probably eight or nine companies. Um, but I love to have a equity portfolio of 30 or 40 businesses, you know, where I own pieces of a lot of different companies. Um, but everything I do I do because there is a primary, uh, reason to do it, but also there are secondary synergies with other things. Um, in some cases I am starting or buying to aid in another acquisition that I made, you know, like here's an example. So I'm negotiating right now on a, um, on a big real estate education company, right? A proven entity, multimillion dollar operation, as lots of students as a, you know, a backlog of, of trainings, proven methods, Facebook ads, everything's turnkey, right. Ready to go. Um, probably does five, 6 million a year in business. And that business right there in and of itself is great. And it can be a great acquisition in of itself, but there are three other companies I'm looking at to acquire just because it would be able to exponentially grow this, this company that I'm buying here, right?

Matt (48:15):

Like this cup clearly needs, there's one big gap in their educational offering, right. That is clear. Right. And we could make it and it would take a year or I could go buy the company that already has it made. And then it becomes that thing. Right. And so there's a company over here that already does it. I can buy it. I can make it a no-brainer. I can help that owner build it 10 times bigger than he was ever going to build it by bringing it into this. And so I strategically look at everything I do now like that. And I do it, you know, when I was doing more and more properties, especially during the foreclosure crisis, I'd buy, you know, a bunch of properties on the same street. And then you bring up the whole street and you build your own equity in a street.

Matt (49:00):

Cause now all of a sudden, man, that's a really nice street. Everybody wants to live on that street. And I did 12 houses out of the 18 on it. And so, yeah, it's really nice new grass on everything. Everything's newly painted. Everything looks really good, you know, so I look at businesses the same way now. And, um, you know, sometimes those businesses come with it, bring with it like this one, the one I'm negotiating on now bring with it an ad strategy in place, which is amazing. He has not, not having to figure out an ad strategy is a kind of incredible, you know, and so since that's was one of the primary things

Zach (49:36):

Incredible, Oh my goodness, this has been an amazing, uh, episode. I really appreciate you diving into, uh, really breaking down, you know, what you would do to sell, um, a new mastermind and, and really sharing how you, how you look at business. Tell everybody a little bit about what you're up to next and,

Matt (49:55):

Uh, how they can get in touch. Yeah, man, definitely. Well, just reach out to me and I mean, if you're a marketer and you're doing cool things and uh, you just want to like, you know, be in touch with me, just find me on Facebook. You know, I'm friends with Zach, I'm friends with Dylan. So if you're friends with those guys find Matt Andrews on Facebook, it's usually gonna be pictures of me and my wife and my two kids. I got a six year old daughter, two year old boy and spend a lot of time hanging out with them. So you can find me Matt Andrews on Facebook and then, um, and that's really it, you know, there's a, you know, if you're into estate, you can link off of that profile to a lot of other things that I do real estate related. And, um, you know, I will tell you one thing that I'm pretty excited about that's coming up.

Matt (50:38):

That's kinda, it's, I guess it's a little marketing related, but, um, there's definitely some marketing behind it. Um, we just did, you know, COVID has been tough on, I do a lot of charity work and Cove has been tough on travel obviously. And a lot of the charity work we do kind of depends on travel and, um, we have been able to something good just happened and something, something good is about to happen to. We deliver 1100 wheelchairs every year to Jamaica, to the inner cities of Jamaica. And I usually take teams once or twice a year down to Jamaica and, you know, usually about 20 or 25 people. And we spend like a week just assembling wheelchairs and distributing wheelchairs and going through that process. And, um, so we do 1100 wheelchairs per year that we source and create and assemble and then deliver.

Matt (51:28):

And that we weren't able to do that this year. So the thing that's cool that just happened was we partnered with a third, uh, with a second charity down there, a third party and said, look, we cannot get down there, but our wheelchairs are sitting in this storage compartment and, uh, they're going to be sitting there for a year and the tires are going to be ruined a year from now on when we can travel again. Right. Um, do you want to do this? And so they, they basically, um, assembled a volunteer workforce and for an entire week distributed all 1100 wheelchairs that my group is going to do over to, you know, the course of two different trips. So super cool, super win. And now we are partnered with that charity in a way that provides some real unique opportunities for the future. So even with COVID and us not being able to go down there, and I was thinking, we were literally going to be wasting 75 grand in wheelchairs that we got donated and we're going to be ruined.

Matt (52:24):

Um, we, we not only use them delivered them, but made this really cool relationship with another third party. Right. Um, the same thing is happening right now with our children's home in Nepal or partnering with another group there, uh, to be able to deliver some food and resources, uh, that we can't deliver because we can't be there. So, um, so those are just two things I wanted to share two cool things that are happening. And the whole reason I built businesses, the way I do the way I acquire in the way I do the way I run real estate, the way I do it. So that I've got some time and some mental bandwidth. And you had talked about this before Zach some time and mental bandwidth to be able to do those other kinds of things, you know, to be able to work on a project like that in Nepal or down in Jamaica, to be able to make those kinds of relationships.

Matt (53:11):

And so it all comes back to relationships, you know, that's, that's where, that's where it all is in business and charity and your family. That's really where it comes back to, but having the time and building a business that allows you to do everything you want to do and time to actually think a little bit and some mental bandwidth to work on. Some of those other projects is we all have those things we want to do, right. It's having the time to actually do them and the mental, the mental ability and the mental presence to do them because we're not host from working too hard or whatever, you know? So that is when I leave that with everybody is, you know, whatever you're building, whatever you're working on, whatever is working for you, you know, parlay it into some real estate or something that provides passive income. Right. Number one. And number two, it's that thing that I just said, you know, just, just keep that in mind. So I appreciate it, man. This was fun. Oh man,

Zach (54:02):

Andrew, there you go. And thank you so much. We'll definitely have you back on the show and, uh, this has been, this has been an amazing, thank you. Oh, see it. Thanks so much for listening to another episode of the rich add more ed podcast. If you're like me and listen to podcasts on the go, go ahead and subscribe on Apple podcasts, Spotify, YouTube, and rich ed [inaudible] dot com slash podcast. And if you absolutely love the show, go ahead and leave a review and a comment share with a friend. If you do take a copy screenshot of it, email me [email protected] Show me you left a review and I'll give you a free copy of the rich add or add book to learn more about the book. Go to rich ed.com to leave a review that a rich ad for at.com/review. Thanks again.


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About The Podcast

Jason Hornung is the founder and Creative Director at JH Media LLC, the world’s #1 direct response advertising agency focusing exclusively on the Facebook ads platform. Jason’s proprietary methods for ad creation, audience selection and scaling are responsible for producing $20 million + of profitable sales for his clients EVERY YEAR

Zach Johnson

Zach Johnson is Founder of FunnelDash, the Agency Growth and Finance Company, with their legendary Clients Like Clockwork solutions. Under Zach’s leadership, FunnelDash has grown to over 5,000+ agency customers managing over $1 Billion in ad spend across 41,000 ad accounts on. Zach’s private clients have included influencers such as Dr. Axe, Marie Forleo, Dan Kennedy, Dean Graziozi to name a few. Zach is also a noted keynote speaker and industry leader who’s now on a mission to partner with agencies to fund $1 Billion in ad spend over the next 5 years.

Dylan Carpenter

Dylan Carpenter

Dylan Carpenter will be diving into what he and his team are seeing in 200+ accounts on Google and Facebook when it comes to trends, new offerings, and new opportunities. With over $10 million in Facebook/Instagram ad spend, Dylan Carpenter had the pleasure to work with Fortune 500 companies, high investment start-ups, non-profits, and local businesses advertising everything from local services to physical and digital products. Having worked at Facebook as an Account Manager and now with 5+ years of additional Facebook Advertising under my belt, I’ve worked alongside 60+ agencies and over 500+ businesses. I work with a team of Facebook, Google, and LinkedIn experts to continue to help companies and small businesses leverage the power of digital marketing.

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