Get Rich Education (general)

Really… Detroit? It’s in America’s cash-flowing Midwest. But is there a stigma involved? Does it matter?

In the 1950s, Detroit was the wealthiest city in the entire world, led by the manufacturing and automotive industry.

But it endured a horrific economic and population downfall late last century due to aging manufacturing plants, high taxes, overregulation, poor services, corruption, and lack of public administration.

Detroit even filed for bankruptcy.

Between 2010 and 2020, the population of the Detroit Metro grew 2%+, per the US Census Bureau.

Time magazine named Detroit one of the World’s 50 Best Places To Live—one of just five US cities.

Our own COO, Aundrea Newbern, MBA, recently chose to move to the Detroit Metro. 

The average Detroit income property from today’s guest provider rents for $1,100 to $1,200 and costs about $120K.

These are renovated single-family homes, often brick.

The Big 3 auto manufacturers are all headquartered in Michigan today.

Detroit’s substantial employment sectors today include: manufacturing, automotive, engineering, IT, medical, trade & transportation, technology, and finance.

The income property provider is aware that Detroit has a stigma. They encourage you on an in-person tour. Get started at: GREmarketplace.com/Detroit

Often, you’re buying property at less than replacement cost.

This provider encourages buyers to do independent third-party property inspections first. (I love this!)

If you’d like to learn more, start at: GREmarketplace.com/Detroit

Resources mentioned:

Show Notes:

www.GetRichEducation.com/434

Explore Detroit income property:

GREmarketplace.com/Detroit

Detroit makes TIME’s ‘World’s Greatest Places’ list, 1 of only 5 US cities:

https://time.com/collection/worlds-greatest-places-2022

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE 

or e-mail: info@RidgeLendingGroup.com

Analyze your RE portfolio at (use code “GRE” for 10% off):

MyPropertyStats.com 

Memphis property that cash flows from Day 1:

www.MidSouthHomeBuyers.com

I’d be grateful if you search “how to leave an Apple Podcasts review” and do this for the show.

Top Properties & Providers:

GREmarketplace.com

Best Financial Education:

GetRichEducation.com

Get our wealth-building newsletter free—text ‘GRE’ to 66866

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode434_.mp3
Category:general -- posted at: 4:00am EST

Learn the beginner's mistakes to avoid.

Is setting up a real estate LLC even worth it?

Learn how to build the right credit score for a mortgage loan, including why you actually don’t want a score over 800.

If a cash flowing property is so great, why would anyone sell it to you? I outline a myriad of reasons.

Should you make a lowball offer to a real estate seller? Learn negotiation techniques.

Earnest money procedures are covered.

The real estate buying process is slow. From the time that you make the offer, it can often take over 30 days to close the deal.

Once your offer is accepted, I recommend a professional third party inspection. It can cost you $300 to $500 for a single-family income property up to $1,000 for a fourplex inspection.

I cover property appraisals and how they verify the quality of the bank’s collateral.

Learn how to get a good feel for your property manager and what their duties are. 

I discuss the Management Agreement between you and your manager.

Be sure to tell your insurance provider that this is a rental property, not your primary residence.

A mobile notary meets you at your home, workplace, airport, or even a restaurant in order to complete the paper-and-ink closing process. This wraps up the deal.

Get started with income property at: GREmarketplace.com.

For free coaching to help get you started, contact our free Investment Coach, Naresh, at: GREmarketplace.com/Coach

Resources mentioned:

Show Notes:

www.GetRichEducation.com/433

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE 

or e-mail: info@RidgeLendingGroup.com

Analyze your RE portfolio at (use code “GRE” for 10% off):

MyPropertyStats.com 

Memphis property that cash flows from Day 1:

www.MidSouthHomeBuyers.com

I’d be grateful if you search “how to leave an Apple Podcasts review” and do this for the show.

Top Properties & Providers:

GREmarketplace.com

Best Financial Education:

GetRichEducation.com

Get our wealth-building newsletter free—text ‘GRE’ to 66866

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

 

Welcome to GRE! I’m your host Keith Weinhold, here to help BEGINNING Real Estate Investors Today. 

 

The biggest beginner mistakes to avoid, when you make an offer - can you lowball a turnkey provider, and all those buyer steps like LLCs, mortgage pre-approval, inspection, appraisal, and closing. Today, on Get Rich Education.

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Welcome to GRE. From Athens, Greece to Athens, Georgia and across 188 nations worldwide. The voice of REI since 2014. 

 

This is Get Rich Education Podcast episode 433 - and this is your Beginner’s Real Estate Investing Audio Guide. Hi, I’m your host Keith Weinhold.

 

We’re talking about how to get into long-term buy & hold RE investing - and that’s because it’s the most generationally-proven way to build wealth.

 

First, let’s talk about a couple of the biggest mistakes that real estate investors make - it’s being invested in only one geographic market. Often, that’s the market that they just happen to live in. 

 

There is more risk with being in only one market than most realize, because you’re now tied to the fortunes or misfortunes of just one area’s economy.

 

Another substantial, common real estate investor mistake is that they continue to hold onto one - I’ll call it - special - property in their portfolio that they usually need to get rid of - but they have either sentimental ties to it - or they just hold onto it for convenience, and do you know what that property is?

 

I’m actually talking about a specific property here.

 

It’s the home that YOU YOU USED TO LIVE IN yourself. Well, what’s wrong with renting out the home that you used to live in yourself? 

 

You might still have the preferable owner-occupied financing locked in on that one - and afterall, that’s a better rate than you could get on a non-owner-occupied rental.

 

The problem is that the property probably doesn’t perform BEST as a rental.

 

But you might be clearing, say $600 per month by using your former primary residence as a rental today. 

 

Look, for you, it’s often about the cash flow - and yes, it is about the cash flow. 

 

But there’s something even more important than cash flow - that’s because nearly any property will cash flow if the loan were paid off.

 

That’s why it’s really more specifically about the rent-to-price ratio of a property.

 

If you’re renting out the home that you used to live in, and it wasn’t strategically bought as a rental, if your rent-to-price ratio is 0.4%, meaning that for every $100K in value it has, you’re only getting $400 of monthly rent income, then you’re losing cash flow dollars every year - and every month.

 

Look, let’s give a real life example of the .4% RV ratio. Say that you can get $2,000 rent out of that $500K property that you used to live in. 

 

But instead, three $150K homes bought strategically as rentals can have a combined rent income of $3,000. 

 

So it’s either one $500K property at $2,000 of rent income.

Or three $150K properties at $3,000 of rent income. 

 

So you’re losing $1,000 dollars of cash flow every month - by not buying and owning strategically in markets in the Midwest and South where the properties make sense as a RENTAL on the day that you buy it.

 

Your primary residence only made sense as a primary residence on the day that you bought it. 

 

Now you can see that the only reason that you still own it, is because you defaulted and “fell” into it. Don’t fall into things. Often, you want to be intentional. 

 

You are a better investor when you’re intentional rather than emotional.

 

It’s even better for you now. Beyond your $1,000 of additional cash flow with some repositioning, now, with three properties instead of one - now you’ve also taken care of the first real estate investor mistake that I mentioned.

 

WITH three rentals rather than one, now you can be diversified across multiple markets.

 

Two birds are killed with one stone. Now with some re-positioning, you’ve increased your cash flow by $1,000, AND you’re in multiple markets. One property isn’t divisible.

 

And this $1,000 of monthly cash flow example is small. Of course, the differences can be greater than this.

 

We’re talking about real estate investing for beginners today, so let me clearly guide you through step-by-step on just how you go about buying your first property - writing an offer, getting an independent third-party property inspection and vetting your Property Manager which is known as due diligence, then the appraisal, and onto closing and receiving cash flow from the tenant.

 

As you’ll see, much of today’s show pertains to any investment property at all.

 

But we’re talking mostly about how to buy what are known as turnkey homes, especially homes outside your home market - as most of the best deals are not found where you live.

 

Turnkey means three basic things. #1- You buy a property that’s either brand new construction or fully renovated. #2- A tenant is placed for you - and you get to approve them. And #3- the property is held under management for you from Day 1 - if you so choose.

 

Like they say, the best investors live where they want to live, invest where the numbers make sense.

 

Today’s content is primarily geared toward United States real estate investors - but those that live outside the United States will benefit here too. You might want to buy a property in the US.

 

Here’s a question that you might have - “How do I go about setting up an LLC - a Limited Liability Company - to hold my investment property in?”

 

I’ll tell you - I don’t think “How do I set up an LLC?” is the best question to ask.

 

The best question to ask is, “Should I set up an LLC?” 

 

The three main reasons people set up an LLC are for either anonymity, tax purposes, or asset protection.

 

Now, if you know that you WANT to set up an LLC - I’ve done four episodes on that topic with Rich Dad Legal Advisor Garrett Sutton.

 

You can go to GetRichEducation.com, type “Garrett Sutton” in the search bar, and those four episode numbers will appear so that you can listen. He was just on the show with us 9 weeks ago on Episode 424.

 

But the reason that the question is, “Should I even SET up an LLC?” is because:

 

  • Setup of LLCs complicates your life. Maintaining a registered agent, Articles Of Incorporation, having separate accounts, tracking expenses with separate credit cards, paying annual fees for everything - depending on how many LLCs you have and how you structure your life - it can wear you out.

 

  • The second reason you should ask yourself, “Should I even set up an LLC?” is because you might not have many assets for a litigant to go after. Retirement accounts have certain protections already. Equity in a property could be low-hanging fruit for a plaintiff attorney if someone gets a judgment against you. But since the Return From Equity is always zero, what would you have much equity in a property anyway?

 

  • The third reason you should ask yourself, “Why should I even set up an LLC?” is that frivolous or slip-and-fall type of lawsuits are rare. Not only have I never been a party to one, I’ve never even heard of any investor friend or associate having one - and I talk to a lot of people. You probably haven’t heard of one either.

 

Now, note that I’m not saying you can’t get an LLC or shouldn’t get one. I’m saying, prioritize those questions to yourself.

 

First, it’s “Should I get one?”. If that’s a definitive “yes”, only THEN ask:

“How do I set one up?”

 

Why do you think you have to? Did some attorney use fear tactics to get you to?

 

If the result of the LLC’s administrative overburden provides a greater reward in the form of asset protection, anonymity, or tax benefit - which is typically a flow-through taxation type anyway, you might then … get an LLC.

 

So, as a beginning real estate investor, understand that real estate is a credit-based asset - meaning it’s usually bought with a loan.

 

So let’s talk about getting your finances in order before you contact a lender or select an income property.

 

That begins with you having enough cash liquidated for a 20% down payment on the property - add about 4% for closing costs, depending on the state that you’re buying your property in - and on the lowest-priced property that’s still in a decent area of a low-cost city - which might be a $100,000 property …

 

24% of that then is about $24,000 that you’ll need. You should have some extra on top of that as reserves. 

 

Now, let’s look at another part of your finances - your DTI - your debt-to-income ratio. It cannot exceed 43% to 45% - maybe up to 50% in some circumstances. 

 

So if your monthly minimum debt payments - everywhere in your life - housing payment, minimum credit card payments, minimum car payment - if that sum is $5,000 and your gross monthly income is $10,000 - that’s a 50% DTI. You can’t exceed that.

 

Of course, before a bank is willing to loan you money, they want to have a reasonable assurance that you aren’t weighed down with debt elsewhere because their fear factor goes up that they won’t get paid back.

 

Next, let’s talk about your credit score. We dedicated an entire episode to this back in Episode 54. If you can remember back that far, Philip Tirone was here with us and you learned more about credit scores that you probably ever thought you would …

 

… and he even went on to call the credit scoring system a total scam. He was quite opinionated - it was interesting and eye-opening, but ...

 

Playing within the scam here - as it might be. 

 

There are many different credit scoring models, but the FICO Score - F-I-C-O - is a respected one that you’re probably going to see your mortgage lender use.

 

It stands for Fair Isaac Company.

 

Their credit scoring range is 300 - the worst, up to 850. 850 is essentially a perfect score.

 

Importantly, 740 is the highest score that helps you here. 

 

If you have a 782 or an 836, it doesn’t help you qualify for the loan or get you a lower mortgage interest rate or anything else. 

 

740 is where you’re optimized.

 

Now, just a quick overview of FICO credit scoring ...

 

There are five primary ingredients that make up your credit score.

In order of importance, they are your payment history, amounts owed, length of your credit history, new credit, and finally credit mix. 

That first one, Payment History, is the most heavily weighted one. It’s 35% of your score.

As you might expect, the repayment of past debt is a major factor in the calculation of credit scores. It helps determine your future long-term payment behavior. Both revolving credit (i.e. credit cards) and installment loans (i.e. mortgage) are included in payment history calculations. 

Although installment loans like mortgages take a bit more precedence over revolving credit - like credit cards. 

This is why one of the best ways to improve or maintain a good score is to make consistent, on-time payments.

The next way, your Amounts Owed – 30%

This category is basically credit utilization or the percentage of available credit being used - or borrowed against. Credit score formulas “see” borrowers who constantly reach or exceed their credit limit as a potential risk. That is why it’s a good idea to keep low credit card balances and not overextend your credit utilization ratio.

So if you’ve got just a $1,000 balance on a credit card with a $10,000 credit limit, that’s seen as a good ratio. You’re staying well within your limits then. 

The third FICO credit score ingredient is the Length of your Credit History – 15%

This factor is based on the length of time all credit accounts have been open. It also includes the timeframe since an account’s most recent transaction. 

Newer credit users could have a more difficult time achieving a high score than those who have a long credit history. That’s because if you have a longer credit history, FICO has more data on which to base their payment history.

The fourth of five FICO ingredients is your “Credit Mix” – Now we’re down to an ingredient only comprising 10% of your score.

Credit mix just means that it helps your score if you have a combination of credit cards, retail accounts, installment loans, finance company accounts and mortgage loans. 

Finally, “New Credit” makes up the last 10% of your FICO score.

Don’t open too many new credit accounts in a short period of time. That signifies a greater risk to lenders – and that’s especially true for you if you’re a borrower with a short credit history. 

And you sure don’t want to open up any new lines of credit, down the road when you’re in the qualification process for buying a new property unless you check with your Mortgage Loan officer first.

Now, those five factors have been weighted the same for quite a few years. 

Knowing what factors make up your FICO® Credit Score can help you qualify for more loans and get better mortgage interest rates. That’s the bottom line.

This helps you get pre-qualifed or pre-approved with your Mortgage Lender.

To get prequalified, you just need to provide some financial information to your mortgage lender, such as your income and the amount of savings and investments you have. Your lender will review this information and tell you how much they can lend you. 

 

After pre-qualification, you can seek the higher-level status and that is getting pre-APPROVAL for credit. Pre-approval is better than pre-qualification.

 

If you think about it, it makes sense. Qualifying for anything in life is not as good as getting approved for something - I suppose.

 

Pre-approval involves providing your more detailed financial documents - like W-2 statements, paycheck stubs, bank account statements, and your previous two years tax returns. This way, your lender can VERIFY your financial status and credit.

 

Now that you’re pre-approved with a lender, you can focus on the market and property that you’re interested in.

 

RidgeLendingGroup.com is the mortgage lender that we recommend most often because they SPECIALIZE in income property. They don’t have any seasoning requirements.

 

Seasoning means that the person selling YOU the property needs to have held onto it for a certain length of time - or the lender won’t finance the property for you.

 

While you’re in the pre-approval process, you can be learning about a cash-flowing investment market. 

 

You want to pick a geographic metro market that typically has low-cost properties, and high rent incomes in proportion to those low costs. 

 

In fact, the market is more important than the property. Because your income comes from your tenant, and your tenant’s income comes from a job.

 

So you typically don’t want to own much property in a town with 12,000 people that’s in an outlying area - not part of a greater metro - where 1/3rd of the employment is tied to one tungsten factory or even one semiconductor manufacturer.

 

Because now, too much of your income stream is tied to just one industry.

 

If the tungsten industry goes down, so goes your tenant base.

 

You also don’t want to buy slummy property. Those tenants often don’t pay the rent. You also don’t want to buy much above an area’s median-priced home, because the numbers don’t work out.

 

So you want that working class housing that’s just below the median price point for the area.

 

If you’re not already confident about that and familiar with the right provider ... 

 

We have information on the right market, with the right provider, with properties - and they’re typically in the MidWest and South - at GREmarketplace.com

 

So read a market report there. That’s good, pointed information.

 

Most investors are interested in a property for the production of cash flow. That’s the margin by which your monthly rent income exceeds all monthly expenses.

 

Rent income minus expenses should be a positive number.

 

So that’s your monthly rent minus VIMTUM. V-I-M-T-U-M. 

 

Vacancy, Insurance, Maintenance, Taxes, Utilities, and Management.

 

I like easy ways to remember things and VIMTUM is an easy way to remember.

 

So, you’re listening to the Beginner’s Real Estate Investing Audio Guide here as a regular episode of the GRE Podcast.

 

If you’re not a beginner & you’re still listening, it’s either a good review and you might even be learning some new things along the way yourself. 

 

Including, should you ever lowball a turnkey provider and a negotiation approach that I have for that - in a few minutes. 

 

But first, one reasonable beginner question is ...  

 

“Now why would someone would want to sell me a cash-flowing property in the first place? 

 

Why would someone - like a turnkey provider - why would they sell me a good thing that pays them every month that they could continue to hold onto for cash flow?

 

If a property pays someone every month while they hold onto it - why in the heck would they sell it to me?

 

OK, some seller out there has a golden goose that lays a golden egg every month, so why in the world would they give me an opportunity to buy the goose?

 

Well, there are just so many reasons for selling cash-flowing property - yes, a ton of reasons for selling even a young, healthy goose that lays golden eggs every month & is expected to so for years.

 

Well, a turnkey provider runs out of money too. They can’t buy all the properties themselves. 

 

They’d prefer a lump sum payout when they sell this property, because their business model is to go pay all cash for another distressed property that they can fix up.

 

And if you think that they snatched up the good ones themselves a while ago - yeah, they probably did do some of that.

 

In fact - I WANT them to have snatched up some good properties from their own market earlier. It shows me that they believe in what they sell. If they didn’t buy what they were selling themselves, I’d actually be MORE concerned.

 

Now, other reasons that the - I guess general public seller might want to sell you a property is ...

 

One reason is moving. Say that a family in City A owns a few mom-and-pop rental homes that they self-manage and they’re moving to City B in another state, they’ll often sell their income properties.

 

Some people want to self-manage their property (often because they never explored their best-and-highest use, but anyway) & if they have to move to City B, they’ll sell the property rather than try to find a Property Manager in City A. 

 

Another reason people sell cash-flowing property is that - even if someone is not moving, that person might be tired of the self-management hassle - but yet they don’t try professional management - because that person has the DIYer mentality - that soooo common do-it-yourself mindset.

 

OK, most people just don’t take a strategic approach to real estate investing like you are by listening to this.

 

Other reasons for people selling cash-flowing property are death, marriage, divorce, and all kinds of either joyous or tragic life milestones.

 

If a husband-and-wife own rental properties but running & managing them was kind of the husband’s thing & the husband dies … the wife doesn’t know how to run the properties & she’s likely to sell rather than hire a Property Manager.

 

People may sell their cash-flowing property in case of all kinds of emergencies - medical and otherwise - because they may need a quick lump of cash - instead of the steady stream of cash flow over time that just won’t work for them in their new situation.

 

OK, most of those situations involve some sort of external life change for property sellers - a lot of them tragic.

 

Well - here’s a personal one for you... 

 

A few years ago, I sold two cash-flowing apartment buildings at the same time - well, those sales actually closed on consecutive days - so nearly the same time.

 

Both of those cash-flowing apartment buildings that I sold were 100% occupied with tenants, I had competent management in place, and there were no deferred maintenance issues with the buildings.

 

You want to know my reason for selling two nice golden apartment gooses that were seasoned and steadily laying some nice golden eggs?

 

OK...can you guess why?

 

Alright, fortunately I didn't have any distress or emergency in my life.

 

...oh, and also, I wanted to sell them fast too, I couldn’t let these two cash-flowing apartment buildings linger on the market for a while. I really wanted to get rid of them.

 

I had no distress like those situations I mentioned earlier.

 

So can you guess why I wanted to sell these long-producing golden gooses in a good job growth market that produced nice cash flow, nice golden eggs?

 

I’ll tell you why.

 

That's because I knew I could 1031 Exchange those two gooses for two even larger gooses. Now I won’t get into the 1031 here on a beginner episode. 

 

But I replaced the two smaller apartment buildings with two larger apartment buildings that would produce even larger eggs if I did it with a quick timeline - and I could defer any tax on my profitable gain. 

 

I found - I guess - two very fertile egg producers that were going to produce even more cash flow over time.

 

So...I think you get the message here. To the buyers of my smaller apartment buildings, I appeared as a very motivated seller of cash-flowing property, even though I had no external stress in my life. 

 

It was due to internal reasons that I wanted to sell...and it’s the internal drive to expand my income. 

 

No shrinking thinking here at Get Rich Education. We are growing our means.

 

Now, when you’ve found a cash-flowing property that you want to buy, should you make a lowball offer to a turnkey provider? My definition of lowball here, is, a 10% discount. 

 

We’ll say, that a provider is offering a property for $120,000 - then you’d make the offer for 10% less, which is $108,000. That’s a lowball.

 

My answer is ... 

 

No. That’s not going to work. In almost every instance, that’s too much of a discount and it’s going to eat their margin too much. 

 

Depending on how it’s presented, a seller might even be less motivated to work with you if they get a lowball offer. 

 

This company has a business to run and with a turnkey property, you’re typically paying for the convenience. You leveraged their systems of them delivering this product to you that’s already renovated, rehabilitated, tenanted, and under management. 

 

Now, can you can knock off $1K-$2K? And say, offer the seller then - $118K or $119K for the $120,000 property. Yeah, that might work. 

 

It sure wouldn’t be deemed some unreasonable request. But it’s good to at least provide a reason - some rationale - in asking for the discount.

 

Let me give you some perspective on this negotiation too. 

 

For every $1,000 less in a mortgage loan that you take out, how much do you think that saves you in a monthly payment? Did you ever figure out how much that saves you?

 

Well, at a 5% interest rate on a 30-year loan, reducing your mortgage loan amount by $1,000 saves you … $5. Five bucks in a reduced payment.

 

For more perspective, keep in mind too, that once the seller accepts your offer - it’s only the first part of the negotiation.

 

Later, it’s a negotiation with the inspection. We’ll discuss how to navigate THAT shortly.

 

I’m Keith Weinhold. You’re listening to the Audio Beginner’s Guide to Real Estate Investing, here on Get Rich Education.

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***AD RESOURCES*** 

 

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Welcome back to GRE Podcast 433. This is your Audio Beginner’s Guide to Real Estate Investing. I’m your host, Keith Weinhold and we’re talking about buying an income-producing property, especially…

 

…a TURNKEY property - which just means that it’s already renovated, tenanted, and under management with a tenant on the day that you buy it. 

 

Now, once your offer is accepted by the seller, I want to give you - really just a brief outline of what to expect next. 

 

This isn’t intended to give you every step in exhaustive detail, but this is generally what comes next for United States real estate purchases, and custom varies somewhat from state-to-state.

 

So with that in mind, once the turnkey provider or seller accepts your purchase offer...

 

You need to send in your earnest money. Earnest money is not the down payment. It’s a smaller amount that shows good faith that you’re serious about your offer. 

 

It’s often an amount of $5,000 or less and it shows the seller that you’re serious enough about buying the property that the seller has the confidence to take their property OFF the market and not show it to anyone else.

 

The seller should give you instructions on how to place your Earnest Money. 

 

Now remember, your earnest money deposit is not going directly TO the seller, it is going to a third-party escrow account, and it is refundable to you in accordance with the terms of the contract that you signed.

 

Your contract should have an estimated closing date in there. I want to emphasize that the key word there is “estimated”. 

 

While it is important that all parties work towards closing by this date, between you and me - let’s just be realistic - the reality is that many transactions get delayed beyond the closing date in the contract for a variety of reasons on the seller side, sometimes having to do with construction or renovation delays. 

 

If this happens, it is nothing to be worried about, just remain in touch with the seller and you can simply sign a contract extension if needed when the time comes.

 

As you are financing your property, be sure to keep getting your lender anything that they ask you for up so that they can keep processing your loan. 

 

As your closing gets near, they will probably ask you for some updated information and have some final stipulations from the underwriter, so just remain in close touch with your lender and try to provide them what they need as swiftly as you can.

 

During most of this time where you’re under contract & even before you’re in-contract to buy the property, most of your relationship with your lender and seller is just sitting around, waiting for the next stage. 

 

Some days, frankly you’re thinking, “When will they reply to my e-mail?” OK, sometimes, RE moves slower than glaciers.

 

Once construction/renovation is completed on your property, I suggest that you order a professional third-party home inspection before closing. 

 

As the buyer, this is at your expense, but the home inspection is cheap insurance for you and it is an important part of your due diligence. It might cost you about $300-$500 for a single-family turnkey income property.

 

A four-plex inspection might cost up toward $800 or $1,000.

 

When seeking an inspector - seek ASHI certification - that is American Society of Home Inspectors.

 

You’re looking for an inspector with a good reputation, licensed and bonded. It is good to look for a level of experience as well. The choice is really yours as the Buyer.

 

Your inspector points out deficiencies in what I’ll break into a few categories. 

 

#1 is Major concerns – these are significantly defective, safety issues that require immediate repair. Often times, those things absolutely MUST be done in order for your lender to even finance the property so the seller is going to do those things for you. That might be something like adding a railing to a porch.

 

The second category are recommended repairs – So they’re recommended but not required. That might be adding some extra insulation in the attic. 

 

The third category is “well, it would be NICE if it were done” - like a kitchen cabinet door that’s a little loose and doesn’t close snugly.

 

When you get your home inspection report back because the inspector has compiled their findings, the key to remember is that the inspector will ALWAYS return a (usually long) list of items that they recommend be corrected prior to closing. 

 

Now, this even happens on new construction, so expect some findings.

 

I swear, even on a perfect, unblemished home it seems like the inspector would say that the bushes have to be trimmed or something. Ha!

 

And remember, you are not closing on the property in the condition it was inspected. Rather, the inspection is just part of the process on the path to getting the property up to its final condition. 

 

Then you and the seller agree on what will be fixed (at the SELLER’S expense (not your expense), and verified to your satisfaction), prior to closing. 

 

The seller is anticipating that they will need to make some final repairs (at their own expense) after they get the inspection repair request from you - that your inspector just compiled for you. This is all part of the normal process.

 

Of course, you can get in a car or hop on a plane and visit the turnkey property yourself and walk the property with your inspector, but I’d say fewer than 10% of turnkey buyers do this. I have never done this on an out-of-state property.

 

But going to see the property in person is never a BAD idea.

 

Today, it’s easier than ever for an inspector or provider to e-mail you a property video. The report that you get from your Home Inspector after he visited the home will have lots of photos and details.

 

Typically, purchase offers are contingent on a home inspection of the property to check for signs of structural damage or things that may need fixing. 

This contingency protects you by giving you a chance to renegotiate your offer or withdraw it without penalty if the inspection reveals significant material damage.

You are protected.

Once the seller makes any needed repairs that the third-party inspector found, I suggest having a re-inspection done by that same inspector. This gives you the chance to confirm that any agreed-upon repairs have indeed been made.

You might spend another $100+ on this re-inspection.

Now, if the original inspection showed that a leaky faucet needed to be replaced, and the seller said they’d do it, and the re-inspection finds that that work wasn’t done as promised, then any FURTHER re-inspection costs are often a cost borne by the seller.

Which seems pretty fair - they said they’d do work - and the re-inspection that you paid for confirmed that it hadn’t been done in this case.

Now, back to the negotiation. If you asked for a reduced Purchase Price, that could lean away from you asking for too much in the inspection.

 

How do I like to play it? Often times, I make a full price offer for the property - and I might even let the seller know at that time that I’d like to give you your price - it’s a full $120,000 in this case - and since you got your price, I’d like my terms.

 

My terms are - that I’m more bold in what I request the seller to do from the inspection findings. 

Maybe I will ask them to add that extra insulation in the attic as one of those “Recommended buy not Required For Financing” items - or replace a window pane that had condensation inside it.

 

Then, what’s my justification for asking the seller for that. It’s that I’m paying your full price. Again, financing an extra $1,000 only costs me $5 per month.

 

Now, let’s talk about the property appraisal. 

 

The appraisal is a tool that the bank uses to verify the quality of their collateral. 

 

Because in your loan paperwork, at closing, the bank will basically tell you that if you don’t make your monthly payments, you’ll be foreclosed upon and the bank will take back the property - that’s their collateral.

 

So they want to make sure that the property seems to be worth as much or more than you’re in contract for - this $120,000 in our example.

 

Your lender is the one that orders the property appraisal, not you. In about 90% of U.S. states, you as the buyer pay for the appraisal. It costs about $500. 

 

The appraiser is a member of a third-party company and is not directly associated with the lender. It wasn’t always that way. 

 

In fact, one factor that led to the housing downturn of 2007 in the Great Recession is that some lenders & appraisers were “in cahoots”. Haha! That can’t happen anymore. 

 

BTW, the appraisal and some of these other steps are all part of your closing costs. All part of that … about 4% of the property purchase price.

 

The appraisal is typically done by a certified appraiser physically visiting the home - and these people always seemingly have a tape measure with them.

 

The appraiser checks out the premises and their job is to use market comparables to make sure that the lender has adequate collateral in case you, the borrower, default.

 

OK, the bank doesn’t want to lend out more than the property is worth or else they could find themselves underwater if the borrower defaults. The appraisal protects against this.

 

And don’t confuse this appraisal with an assessment. An assessment is something that a county or municipality uses the measure the amount of property taxes that are paid. It’s really unrelated to this appraisal.

 

One interesting thing that’s related to the appraisal and the bank giving you the loan for 80% of the property is that the lender NEVER requires that you see the property in person.

 

Think about what that means. The bank never requires you to see the property in-person, yet they’re willing to loan you up to 80% of the value.

 

Even the bank knows that it’s not important for you to personally see the property - something that they’re willing to put their money behind.

 

Now, when it comes to finding properties and markets and teams, our listeners & followers encouraged us to set up a marketplace for them for finding the properties.

 

We’ve done that for you at GREmarketplace.com. And knowing that Property Management is the glue that makes your property stick together, we - and it’s Aundrea here at GRE that does it - where you find your properties at GRE Marketplace, Aundrea also interviews the property manage in each market for you so that you can get a good feel and vibe about them.

 

Most any provider is happy to do a PM Zoom chat or phone call with you too.

 

Now, just because a property is branded “turnkey” by a company, doesn’t mean that you can dismiss doing your due diligence. Turnkey can be a great system, but there’s nothing magical about that word alone.

 

Don’t overlook developing a good feeling about your Property Manager, because this is the one long-term relationship that you expect to have. I just can’t emphasize that enough. Your Manager is one of your key team members.

 

They’ll tell you the character of the current tenant that’s currently in the home. Find out how the manager is going to pay you. Feel them out, know what your communication flow is going to be like. 

 

If they’re part of the same turnkey company, a good manager should also connect you with whoever renovated your turnkey property in case you have some questions for them.

 

Now, notice that I haven’t mentioned a real estate agent. Most turnkey providers work in a direct model so that you don’t have to go through agents. That’s one way that GRE Marketplace providers keep the price down for you.

 

You must sign a written Management Agreement with your Property Manager. 

 

What the MA does is that it gives the manager the authority to manage your property for you, manage tenant relations for you, the MA will state their fees, and you’ll have your contact information in that agreement.

 

There are typically two fees - a leasing fee and a management fee.

 

A leasing fee is where you’ll spend ½ month’s rent to one month’s rent amount when the Manager screens a new tenant. So hopefully that only happens every 1 or 2 or even 5 years if you’re lucky. 

 

Yes, you can typically approve or reject their selected prospective tenant. You are going to be the owner of the property afterall.

 

A management fee is often 8-10% of one month’s rent income - and that’s what you pay monthly - ongoing.

 

You can sign a Management Agreement with the property provider if they have management integrated in-house. If not, you can lean on your provider for some management recommendations.

 

Now, there’s one blank to fill in on your Management Agreement - it’s a dollar amount up to which the manager can pay for expenses that come up - against your account - without contacting you. 

 

For example, if the number $500 is written in there, that means that if a maintenance or repair expense on your property exceeds $500, they must contact you prior to incurring that expense.

 

You get to choose that dollar limit. As a beginning real estate investor, go with a lower figure. 

 

Then as you get comfortable or you don’t want to be bothered about the property as much, you can increase that dollar limit in which they need to contract you about approving maintenance or repairs.

 

Basically, if there’s something that has to do with the property & you don’t want to deal with it, then make sure it’s written in the Management Agreement that the manager will perform it.

 

Typically, it’s going to say that the manager will collect rent, handle tenant relations, respond to repair requests, send you the rent, keep your ledger of income & expenses on the property, post legal notices if a tenant is paying the rent late, and sooo many other associated duties that I personally don’t want to deal with. 

 

Hey, I just want to live my life & keep this investment nearly passive.

 

Get that Management Agreement done - fully executed - signed by both you & the Manager BEFORE you close on the property. 

 

Before you close, you can buy property insurance from any provider you choose. 

 

Your turnkey provider is often happy to recommend some providers that their other clients have used in this market, or you can just Google and find your own. 

 

Be sure to let the insurance provider know that this is a rental property (not a primary residence where you live and not a second home). 

 

Most turnkey buyers purchase both hazard and liability insurance as part of their policy. Like any other insurance policy, you will have choices about deductibles & monthly payments, and coverage amounts. 

 

If you are financing your property, your lender will most likely be able to combine your property taxes and insurance into your monthly payment, so you have one monthly payment for principal, interest, taxes and insurance (PITI) … much like you would on your primary residence.

 

The financing process typically takes about 30 days from the time you submit your EM. 

 

Remember that YOU are a factor in how fast your property closes. If that lender needs another document, give it to them pretty promptly.

 

When you’ve finalized your due diligence, and verified that the seller has made all the agreed upon repairs from the home inspection report, you will be ready to close. 

 

You likely live in a different state than the property and will close remotely. The title company (or its a closing attorney in some states) will prepare your closing documents - including your loan docs... 

 

...and can arrange for a mobile notary to meet you with the docs wherever you choose (your home, your office, your local coffee shop, etc.) so you can sign the docs in front of a notary who will then overnight the docs back to the Title Company so the transaction can fund.

 

Yep, you can do the ink-and-paper thing with a mobile notary at your local Starbucks.

 

Your lender will arrange for a title company to handle all of the paperwork and make sure that the seller is the rightful owner of the house that you are buying. That’s part of what they do for you.

 

It may seem like the closing process is a lot of work, but you’ll really spend most of the time waiting. Most of the time, you'll just be sitting on your hands, waiting for someone else involved in the transaction to come through. 

 

So find something enjoyable to occupy your time and distract you while you wait, and feel secure in the knowledge that you've done your research and know how to make your closing process go smoothly.

 

When you complete that closing with the mobile notary - I’ve done these closings at my home’s dining room table, or even in my employer’s conference room back when I used to have a day job - then, hey! 

 

You need to congratulate yourself on adding another income property to your portfolio.

 

You know, the good news is that of all of these stages we’ve discussed - the longest stage of them all is your ownership of the property. You Own & Collect the cash flow.

 

And hey, this isn’t reason enough alone - but it’s kinda cool that you own property in TN and FL and IN. 

You own part of each one of those states. You’re like a property collector!

 

And with each new turnkey property you buy, you might have just increased your mostly passive cash flow by $211 per month or $118 per month or whatever it is.

 

If you can swing it, it can be more efficient timewise for you to buy more than one property at a time.

 

As you buy more income properties, it not only gets easier because you know the process, but you often get quantity discounts.

 

For example, a management company might charge you a 9% management fee on your first three properties, but once you own four or more, they might charge you 8% on all four rather than 9%.

 

Insurance companies often have similar discounts for you….so you may very well get a little more profitable as you buy more property.

 

I’ve been actively investing in real estate since 2002 and just within the steps of ACQUIRING a property, like I carefully discussed today, some incremental half-step will come up in the process that I haven’t mentioned here - like signing a Lead Paint Disclosure Form.

 

So, you don’t need to commit all of this stuff to memory.

 

Now, something that novice real estate investors say sometimes is something like: “I would only buy an income property that I would live in myself.” 

 

I contend that that is an awful criterion upon which to found strategic fundamentals on purchasing an income property.

 

Once one filters property that way, they have let their emotions trump facts. 

 

If the fact that a clean, safe, affordable, and functional property has a good occupancy rate in a sound employment market, decent ENOUGH neighborhood, and the numbers make sense - that’s more important.

 

OK, you aren’t living there yourself so it’s not a sound criterion.

 

Shoot, if I moved into any income property that I own, my lifestyle would take a substantial hit. Yet I’m not a slumlord - I provide housing that’s clean, safe, affordable and functional.

 

But they’re not replete with fantastic amenities, it does not have Corinthian architecture with alabaster columns - OK - but I know there’s a demographic for my rental property type that demands this responsible-but-no-frills housing over time.

 

It’s about asking yourself a better question, like, “Will this property secure an income stream?” 

 

Alright, would you rather have your property look “cute as a button” - or secure an income stream? I went deep on that topic just three weeks ago here on the show.

 

OK, we’re investors here.

 

Some think that in today’s electronic age, you should be able to complete a property purchase from the time you write an offer until you close on a property in the same-day. 

 

Well, that’s certainly not true. As you witnessed, physical things need to take place because you’re buying a real, physical asset.

 

We’ve been talking today about how you buy an income property - just simply that - especially as it pertains to buying an out-of-state turnkey income property - from the time that you get a property under contract and submit the earnest money to escrow all the way to closing.

 

...because that’s how to generate passive income, which in turn, creates a rich life for you.

 

Again, this isn’t an all-encompassing guide today with EVERY little detail. But we’ve hit the major milestones in the process & more.

 

You’ve got a good general guide on the income property-buying structure. 

 

You might have learned something about prioritization - perhaps LLCs matter less than you thought and a communicative Property Manager matters more than you thought.

 

Today’s show has the type of content that will be about as relevant 5 years from now as it does today. 

 

Now, today is also evidence that real estate does not have the liquidity that some other investments do. It takes longer to get in & get out.

 

However, that low liquidity actually contributes to relative price stability in real estate. OK, there’s no panic selling in real estate.

 

Maybe the most important thing for you to keep in mind is that...

 

You cannot make any money from the property that you don’t own.

 

Your future depends on what you do today.

 

To “know” something and not “do” something is to really not know something.

 

The most important thing you can do is act...because you cannot make any money from the property that you don’t own.

 

But if you’re new to real estate investing & know that you need to “Start small but think big”, otherwise, all this knowledge really won’t move the meter in helping you live an amazing life like RE can, in the past 1-2 years, we hired an in-house coach, who is completely free for you to use.

 

If you’re still a little unsure or want some guidance, lean on our trusted source, Naresh at GREmarketplace.com/Coach

 

He is an expert at helping you along - totally free to you - again at GetRichEducation.com/Coach

 

It’s almost hard to express how much value this gives you & makes it easy. I wish something like this existed when I started out.

 

There would be nothing worse than for me to share today’s knowledge with you - then not let you know where to go to act upon that knowledge.  

 

So if you’re ready to get started - connect directly with market & properties at our Marketplace - at GREmarketplace.com

 

For a little more help, personal and one-on-one with our experienced in-house coach, start at GREmarketplace.com/Coach 

 

Both resources are free

 

It’s been my pleasure to bring you your Beginner’s Real Estate Investing Audio Guide today.

 

Next week, I we’ll discuss one particular geographic market that we never have before - and you probably never thought we would.

 

For properties, start at GREmarketplace.com

For coaching, GREmarketplace.com/Coach

 

Until next week, I’m your host, Keith Weinhold. Don’t Quit Your Daydream! 




Direct download: GREepisode433b_.mp3
Category:general -- posted at: 4:00am EST

Everyone is moving here. Where is “here”? You get an answer that you never expected.

Among those that move, it’s not for job-related reasons. It’s housing-related.

The American mobility rate has declined from 20% in the middle of the last century to 8.4% today. Learn three reasons why more Americans are staying in-place.

Lower domestic migration can have positive results like: less stress, more community formation, longer tenancies, and a boon for the remodeling industry.

The negative impacts include headwinds for real estate agents and mortgage loan companies.

Should you rent or own the home that you live in?

Learn 18 rent vs. own trade-offs.

Paying rent is NOT the same as throwing money away. 

Join me live on tomorrow’s webinar about car wash cash flow. You can ask me questions. Register free now at: www.GREwebinars.com

Resources mentioned:

Show Notes:

www.GetRichEducation.com/432

Join me live on tomorrow’s car wash webinar:

GREwebinars.com

Most Americans Couldn’t Afford To Buy Their Own Home Today: https://thehill.com/policy/finance/3791139-most-americans-couldnt-afford-to-buy-their-own-home-today-survey/

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE 

or e-mail: info@RidgeLendingGroup.com

Analyze your RE portfolio at (use code “GRE” for 10% off):

MyPropertyStats.com 

Memphis property that cash flows from Day 1:

www.MidSouthHomeBuyers.com

I’d be grateful if you search “how to leave an Apple Podcasts review” and do this for the show.

Top Properties & Providers:

GREmarketplace.com

Best Financial Education:

GetRichEducation.com

Get our wealth-building newsletter free—text ‘GRE’ to 66866

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode432_.mp3
Category:general -- posted at: 4:00am EST

What happens when a real estate investment goes sideways? 

An international business was impacted—Panama coffee farms.

The pandemic disrupted coffee supply chains and labor. Erratic weather affected crop yields.

It’s been about four years since we’ve discussed this on the show. 

The Panamanian government shut down many businesses. There was little or no government assistance for idled workers. 

The co-founder explains Panama coffee problems and opportunities.

Learn why the coffee parcel deed issuance has been slow for investors.

There’s a new distribution partner going forward, named Typica. They help sell the coffee.

This is all high-end, specialty coffee, like the geisha variety.

Coffee farm parcels are in the volcanic soil highlands of western Panama, near Boquete. It’s shade-grown.

The provider has acquired their 12th coffee farm. If you’d like to learn more about the investment, start at GREmarketplace.com/Coffee

There are upcoming group tours in March and May.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/431

Learn more about Panama coffee farm investing:

GREmarketplace.com/Coffee

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE 

or e-mail: info@RidgeLendingGroup.com

Analyze your RE portfolio at (use code “GRE” for 10% off):

MyPropertyStats.com 

Memphis property that cash flows from Day 1:

www.MidSouthHomeBuyers.com

I’d be grateful if you search “how to leave an Apple Podcasts review” and do this for the show.

Top Properties & Providers:

GREmarketplace.com

Best Financial Education:

GetRichEducation.com

Get our wealth-building newsletter free—text ‘GRE’ to 66866

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode431_.mp3
Category:general -- posted at: 4:00am EST

Answer this one question and you won’t have money concerns for the rest of your life.

The Dow Jones once fell so hard that it didn’t recover for 25 years

Japan’s NIKKEI peaked in 1989 and still has not recovered.

I discuss the differences between an economic recession and depression.

During the 2008 housing crisis, national housing values only fell 19%. 

Originally, 401(k)s were called “Salary Reduction Plans”. They had to scrap the name to foster participation.

Some investing questions are:

How do I max out my 401(k)?

How can I attend my dream college?

How can I become a millionaire?

After building context, I reveal the most important question in the investing world.

Learn how to keep emotions separate from investing.

The vital question is: “Will this property secure an income stream?”

Resources mentioned:

Show Notes:

www.GetRichEducation.com/430

National Median Home Prices:

https://fred.stlouisfed.org/series/MSPUS

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE 

or e-mail: info@RidgeLendingGroup.com

Analyze your RE portfolio at (use code “GRE” for 10% off):

MyPropertyStats.com 

Memphis property that cash flows from Day 1:

www.MidSouthHomeBuyers.com

I’d be grateful if you search “how to leave an Apple Podcasts review” and do this for the show.

Top Properties & Providers:

GREmarketplace.com

Best Financial Education:

GetRichEducation.com

Get our wealth-building newsletter free—text ‘GRE’ to 66866

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

 

Full transcript:

 

Welcome to GRE! I’m your host, Keith Weinhold. Happy New Year! What is the most important question in the entire investing world? It is a vital one - and this coming year makes it as relevant as ever. 

 

Asking yourself this question & answering it can make you wealthy - and you’ve probably never even heard this question before. That & loads of financial education, today on Get Rich Education!

_____________

 

Welcome to GRE! From Lake Champlain, NY to Lake Charles, Louisiana and across 188 nations worldwide, you’re listening to one of America’s longest-running and most listened-to investing shows.

 

I’m your host. My name’s Keith Weinhold. I’m grateful to be here myself. Thank you FOR being here… and you aren’t here for me. You’re here for you… so let’s build your wealth today.

 

What’s the most important, vital, essential, and almost MANDATORY question in the investing world today?

 

While you’re thinking about that, let me build some context so that it makes sense.

 

Now, why don’t we discuss stocks more on the show here? 

 

When most people hear the word “investing”, they might think of stocks first. Their mind might shoot there immediately.

 

When someone refers to the market, they just simply say, “the market”, they typically mean the stock market, like the DJIA or the S&P 500.

 

Look, with persistently higher interest rates, it’s likely that economic headwinds are still coming.

 

Now, what if things got worse than a recession and we entered a depression? I’m not saying that it’s likely, but let’s look at what CAN happen because this actually HAS happened.

 

What can happen in a depression?! The stock market falls  and doesn’t recover for 25 years. That’s not a guess. That really happened in the United States!

 

Yes, the DJIA peaked in 1929.  The market crash hit. These were the times of “The Great Depression”. 

 

Stocks lost nearly 90% of their value. Yes, 90%. That means that after a loss like that, stocks would have to rebound 9X, 900% just to get back to even.

 

Well, I told you that the US stock market crashed in 1929. The Dow didn't fully recover until late 1954. Yes, 1929 to 1954. That is fully 25 years… just to get back to even.

 

25 years of zero gain. It HAS happened, right here in the USA, the most powerful nation in the world.

 

Well, you might wonder… ah, c’mon, could that really happen to any major stock market in an ADVANCED economy today, in more modern times, even if things got really bad?

 

Oh, yes, things don’t even have to get really bad. Understand that the third-largest economy on earth, still to this day is Japan. 

 

Japan’s NIKKEI peaked in 1989. It still hasn’t recovered from its high 34 years ago. Yes, that’s the MAIN stock market index for Japan - the Tokyo Stock Exchange.

 

That’s still going on right now, today. It still hasn’t recovered back to its 1989 level. It’s not even close today.

 

So it doesn’t even TAKE a depression for those stock market calamities to occur in major world nations’ stock markets.

 

Well, what’s the difference between an economic recession and a depression? 

 

The short story is that a recession is a substantial downturn in ONE nation’s economy, and an economic DEPRESSION is widespread across many nations.

 

And there are some other distinctions.

 

Right? And the old joke is that a recession is when your neighbor loses their job and depression is when you lose YOUR job.

 

Well, what about real estate? Real estate values don't always go up. 

 

What happened to real estate in its ugly downturn about 15 years ago where we had a mortgage meltdown from liar mortgage loans and a glut of housing supply? (neither of which are happening now, BTW)

 

During the ugly Global Financial Crisis in & around 2008 & 2009. Well, during that time, real estate went down 19% nationally.

 

Yes, on a nominal basis, the national median home price was down 19% from $257K down to $208K.

 

That’s it? Maybe you’re thinking, “that’s it”? 19%. This is when everything was going wrong for housing and it didn’t even reach 20% bear market territory fifteen years ago. 

 

And btw, I will put the link to the chart that shows this in the Show Notes for you. 

 

Yes, we really do put links in the Show Notes for you when I tell you that we will. Haha!

 

You can see that at GetRichEducation.com/430 

 

This is episode 430 of the GRE Podcast, so just go to GetRichEducation.com/430 to see today’s resources and today’s show notes also, you have access to an entire transcript - all of the lyrics… like we do for some of our episodes here.

 

So that if you have a deaf or hard of hearing person in your life, they can, I suppose “read” today’s show rather than listen to it.

 

Or maybe you want to read along as you listen… or read after you listen in order to reinforce your learning.

 

Now, at the start of the recession in 2008, the national median housing value was $234K… and it took all of but four years to recover and exceed that level.

 

Yes, from the start of the GFC, housing values only took four years to recover.

 

The source of that information is the Census Bureau & HUD. 

 

That data is also available for you in the Show Notes at GetRichEducation.com/430

 

So the point is that real estate or stocks can lose value. But real estate is substantially more stable.

 

If you buy RE in a good market and you have an average or better PM (meaning they’re “just OK” with screening tenants), then you can sleep well. It’s hard to lose big.

 

You might not even be in real estate for the values. You might be in it for the cash flow.

 

This is helping you build context and provide you with a clue about The Most Important Question in the entire Investing World. 

 

While you’re still pondering what that question might be, because I’ll build some more context for you so that this question makes complete sense… and let’s start to isolate it here.

 

Real estate builds wealth.

 

Stocks though, can maintain wealth after you’ve built it. But you’ve got to build it first. 

 

So that’s why this most important investing question today… isn’t about stocks.

 

Well, what about stocks or mutual funds in a retirement plan? Is that more relevant? 

 

Enjoy the compounding growth on PRE-tax dollars & all that.

 

Take stocks’ 10% return and like I detailed two episodes ago, adjust that down for inflation, emotion, taxes, fees, and volatility… and what do you have left?

 

I’ll tell you what the key question is not. How can I max out my retirement plan? Oh geez. The new annual contribution limit to 401(k)s this year is $22,500 BTW.

 

I’ll admit, I used to have a day job and I maxxed out my retirement for a few years before I realized that maxing out my retirement…

 

… was minimizing my present. And minimizing next year, and minimizing next decade, and minimizing my life for decades until I hopefully was still not just alive… but actually healthy enough to truly enjoy DEFERRING my quality of life all those decades.

 

Maximizing your retirement contribution means that you’re living a SMALLER life for decades. 

 

The risk of delayed gratification is denied gratification.

 

Now there IS something to be said though, for the psychological benefit of you having something saved for the future, even if it certainly diminishes your life in the near-term.

 

Instead, with income property, I discovered that I can invest in something that pays me an income stream TODAY… without jeopardizing my future one bit.

 

In fact, I’m paid an income stream TODAY AND I will get a better return than my 401(k) long-term and the tax benefits too.

 

Today’s mainstream media tells you that it’s a bad time to buy real estate because prices & interest rates are up in the past year. But they’re talking about primary residences.

 

Instead, with rental property, your tenant pays all of your mortgage principal & interest for you & all of the operating expenses & a little on top of that called cash flow.

 

So “How do I max out my retirement?” That is not a great investing question. You’re contemplating how to defer your quality of life, delay your standard of living, and live a life of less.

 

Now, here’s another bad question. I heard a teenager say this the other day, “I want to attend my dream college.” “How can I attend my dream college?”

 

Dream college? What? College is still necessary for some skilled professions. But like we touched on last week here on the show, the value of a college degree is down yet the price of a college degree is up.

 

That’s why enrollment has been steadily declining since 2012.

 

But, even worse, “How do I attend my dream college?” Who would even ask that question?

 

It COULD matter whether you have a degree or not. But no one cares what school you went to. No one cares what your college grades are either.

 

The last time that you went to go see the doctor, do you feel like you got a good quality of care from them or not? That’s what you REALLY care about.

 

Did you want to know what college or medical school your doctor graduated from before you saw them?

 

Do you even know what college they went to? It doesn’t matter.

 

Did you ask your medical doctor about what their college GRADES were? See. It doesn’t matter.

 

Now, I actually don’t think college is a complete waste. I got a 4-year-degree. I learned some things. But it wasn’t the most efficient use of my four years.

 

But “dream college”? Who cares? Not a good question.

 

“Attend My Dream School”. It makes no sense.

 

Here’s a third question that is NOT the best question that you can ask yourself in investing today:

 

“How Can I Become A Millionaire?"

 

Ugggh. Awful question. I think that longtime listeners know where I’m going with this one. But let me update it because we’ve had some substantial inflation for almost two years now.

 

Let me tell you - you don’t want to be a millionaire.

 

The definition of a millionaire is not someone that makes a million dollars a year.

 

It’s having a million dollar net worth.

 

So if you add up the value of all of your assets and it totals 1-and-a-half million dollars and then add up the sum of your debts and that a HALF million dollars.

 

Well, your net worth is 1.5 million in assets minus a half million in debts which equals 1 million.

 

That is not where you want to be. Now, maybe if your 75 years old and you think you’ve got ten years left to live, you could live a somewhat modest life on a million dollars.

 

But, as you can see, that’s not where most people want to be.

 

Inflation has rendered the term “millionaire” nearly to middle class now.

 

The middle class is getting eaten by wages that don’t keep up with inflation.

 

A single millionaire will probably be a POVERTY marker within my lifetime.

 

Now, if you’re a millionaire that has $200K of CASH FLOW each year, that’s different. That’s better.

 

Net worth is not as important a measure as your residual income stream.

 

But just a millionaire? Wrong trajectory. Avoid. Avoid. Avoid. 

 

So maxxing out retirement plans, attending a dream college, or setting out to be a millionaire are all losing financial plans… and they are all losing life plans.

 

We are building some context and eliminating some paradigms as I’ll soon posit “The Most Important Question in the entire Investing World”. 

 

There is one question that can make you wealthy - and you’ve probably never heard this question before. 

 

And if you act on the ANSWER to this premium best investment question to ask yourself… you probably won’t have money concerns for the rest of your life.

 

I think it’ll all make sense when I reveal it later today. While you’re been thinking about it, I’ve been building some context and a foundation about why this question matters, and why those other ones don’t.

 

If you’re new to the show, again, I’m Keith Weinhold. I’m a 20-year REI in the US. I am an active member of the Forbes RE Council. I write all of our articles on GetRichEducation.com too. I’m also a financial columnist for the Epoch Times. 

 

I host this weekly Get Rich Education podcast every single Monday - this show right here. We don’t miss shows. I have never missed a week. And we also don’t replay old shows. Fresh material here for you every single week.

 

Most every financial influencer has been here with me as a guest on the show, running alongside me, including Robert Kiyosaki, Grant Cardone, Jim Rickards, Chris Martenson, T. Harv Eker, most anyone that you’ve heard of.

 

Besides writing for GetRichEducation.com, Forbes and Epoch Times, I also write our weekly “Don’t Quit Your Daydream” newsletter that I send directly to you.

 

Then, I am the “talent” - if you can call it that - that’s what it’s called in the industry “the talent”. It makes a slackjaw like me feel uncomfortable saying it.

 

I am the “talent” on the Get Rich Education YouTube Channel as well - building your wealth over there.

 

I also host webinars to help you get started with real estate. That’s where we look at actual addresses together and more. That’s something that we just began a few months ago.

 

I am also your instructor for a fastcourse that I made specifically for you at: GetRichEducation.com/Course

 

Those five course videos that average just 12 minutes each could comprise the most powerful and impactful 1 hour of investing instruction that you will ever see.

 

That’s free, again, at GetRichEducation.com/Course

 

When you know what you’re doing in real estate, you’re often getting paid five ways. And when you’re profiting like this, you’re not tempted to cut corners. 

 

When you’re not cutting corners, you are providing others with good housing.

 

Let’s do good in the world. Provide good housing and let’s abolish the term “slumlord” in this nation.

 

Everything that I do here is completely free for you - every single thing that I just mentioned is free.

 

If you like our mission, and our direction - doing the right thing before you do things right - I invite you to “Subscribe” to our show now.

 

You don’t have to. But consider it.

 

Subscribing to Get Rich Education on your podcatcher is the only way you’re certain to NOT miss one wealth-building show.

 

More next. I’m KW. This is Get Rich Education.

__________

 

Welcome back to GRE Podcast 430. I’m your host, Keith Weinhold. We are in our 9th year of coming at you every single week, 52 weeks a year.

 

There is one question that can make you wealthy - and you’ve probably never asked yourself this question before, or perhaps even HEARD this question before. 

 

And if you act on the ANSWER to this premium best investment question to ask yourself… you probably won’t have money concerns for the rest of your life.

 

It begins with keeping your emotions separate from investing.

 

When it comes to buying a LT rental property, some of the worst advice that I’ve ever heard is: “Only buy a rental property if you would live in it yourself.”

 

Oh! That really limits your ability to put the most profitable income properties into your portfolio.

 

Now, of course, you had better only buy a primary residence that you would want to live in yourself. 

 

But it’s definitely NOT that way with income property. It is not that way with rentals. Yet you need some standard here, however.

 

Look, years ago, I had a friend that saw me as a successful REI, so he wanted me to tag along with him to go out and tour rental properties on the weekends so that my experience might inform him on which property to buy and which ones to avoid.

 

Most of them were unsuitable. Unsuitable SFR, unsuitable condos, unsuitable duplexes and triplexes and fourplexes.

 

But we found one together - a fourplex - that I thought was suitable and he didn’t.

 

The reason that he didn’t like this, oh, about 1980-built fourplex building is because - though it was well-kept, some of its finishes looked dated.

 

One of the four units had a pink color-themed bathroom that had this sorta weird-looking pink wall tile and pink sink and pink bathtub. It all matched though. But yeah, it looked dated.

 

And another one of the fourplex unit bathrooms had those same bathroom fixtures but in a dated-looking olive green.

 

And the third a light blue, and then the fourth was a totally renovated new bathroom.  

 

Well, it didn’t matter that the bathrooms didn’t match each other. Each family in the fourplex had their own unit in these 2 bed, 1 bath units.

 

And here’s the thing. The building was well-kept, it was fully-occupied, and it had a good history of occupancy.

 

That’s why the fourplex checked my “buy box” but my friend didn’t want to buy it. He just couldn’t get over the emotions that he felt in, say, a pink bathroom.

 

See, he couldn’t see living there himself. But he was not GOING to live in the fourplex himself. He would be an investor that lived offsite.

 

That didn’t make any sense to me. He gave in to emotions, and lost out on a profitable property.

 

So when an investor says that they wouldn’t live in an income property themselves, my response is often, “Oh, I didn’t know that you planned to live there.” Because often times, the investor does not.

 

Emotions got the best of my friend… and he didn’t buy this property that would have been a winner.

 

Here’s a different case. Now, being sentimental is an emotion. I’ve known someone that strongly considered buying a rental property in their own neighborhood chiefly because they used to play basketball at that house back when they were a teenager.

 

Sheesh, that’s an awful strategy. Investing is about facts, not feelings. 

 

And certainly not the feelings that are evoked because you slam-dunked a basketball for the first time on an 8’ rim when you were 13. Ugggh. Dreadful investing strategy!

 

Would that property’s income exceed its expenses?

 

Sentimental feelings are an emotion. Instead, investing is about the facts.

 

Now, we’re building some backstory and context. We are hitting closer to home for what I soon want to reveal as the best investment question that you can possibly ask yourself.

 

Now it’s pretty likely that you want to avoid buying property in a badly blighted, crime-ridden neighborhood that’s also trending in the wrong direction, even if the property is CHEAP.

 

Because in those areas, it’s hard to find a respectful, rent-paying tenant… and the property could depreciate in value at the same time - in a tough neighborhood.

 

Actually, you typically want to avoid BEAUTIFUL neighborhoods too. Yes, “avoid beautiful”. That can sound unusual to newer REIs, but for LTRs, beautiful isn’t profitable. The rents aren’t high enough there.

 

So, depending on your target market, to go from a working class neighborhood (where the numbers often make sense) to an upper crust neighborhood, rents might triple but purchase prices could 10X. 

 

That’s a losing formula for you.

 

So because you want to avoid rough neighborhoods and avoid beautiful ones, what you want to be attracted to are working class, SAFE enough neighborhoods that are just a little below the median home price.

 

You don’t want to go so low that you’re beneath the safe bar. 

 

What are the condition of the cars like in the neighborhood? If someone would park a decent car outdoors overnight, that’s one sign that the neighborhood is safe, in addition to crime and school district data that you can find online.

 

So again, don’t let emotions prevail.

 

Also, don’t let PERSONAL PREFERENCES dictate what you do too much. Ah, you’ll learn some funny quirks about me here.

 

I’ve spent my life living in places that have a real change in seasons, including a substantial winter - that’s mostly in Pennsylvania and also in Alaska, BTW. 

 

But distinct seasons are my personal preference. A lot of people don’t care about seasons. They just want year-round warmth. So that’s why I invest in the Sun Belt states - because I know that it’s what OTHERS want. 

 

It’s not about where I want to live. It’s not about me. It’s not about my emotions.

 

I also know that even people who dislike cold will still live in a cold place if they have a job. Money is very attractive to people and money trumps climate for some people… so it can be good to invest in growing pockets of, say the Midwest.

 

Personally, I don’t prefer to live on HW floor. It’s harder, colder, and noisier than carpeting. I prefer plush, padded carpeting… and I’ve got some reasons for that. But I know that I’m in the minority on that one.

 

We actually did a poll on that on our Get Rich Education Instagram Stories and 83% preferred to live on a hard surface, only 17% on carpet.

 

But see, in my rentals, I use either vinyl plank flooring or hardwood laminate flooring - even in the bedrooms sometimes.

 

Not only is it more durable, but tenants actually seem to prefer it - even if I can’t figure out why. Ha!

 

So I keep emotions out of investing, I’m keeping sentimental reasons out of investing, and I’m even keeping my own personal preferences - like plush wall-to-wall carpet out of investing.

 

Stick with facts and demographics and infrastructure and migration trends, and jurisdictions that have strong protections for landlords. 

 

So, with all of this in mind, what is the best REI question that you can ask yourself during the course of your entire investing career?

 

It is: 

 

Will this property secure an income stream? 

 

Yeah, that’s the big question. And it is unemotional.

 

When you ask yourself, “Will this property secure an income stream” for yourself, now you’re accounting for the quality of tenant that you can attract there.

 

Now you’re accounting for the long-term building maintenance question, and now you’re accounting on if you’re in a good market with enough job and population vibrancy for a long-term tenant base.

 

That’s the stuff that matters.

 

“Will this property secure an income stream?”

 

And what makes that question multi-dimensional is that even though the word “property” is in that question, the question is really asking more about what SUPPORTS the property - like the metro economic market and the neighborhood that it’s in.

 

See, a modest, 1950-built, 500 sf studio apartment can support an income stream for you if it’s in a thriving job market with a future.  

 

Well, as far as your investing for the year ahead, we are still in high inflation - though it’s come down, and many feel that a recession is ahead.

 

Where do you invest in high inflation & a recession? 

 

Well, gold is the classic inflation hedge. But long-term, it’s price merely tracks inflation, so though it could be good to have a little, it won’t grow your prosperity.

 

Bitcoin has been beleaguered in this brutal crypto winter as they call it. Bitcoin has a few redeeming attributes in my opinion. 

 

But it’s risky. In fact, during the GFC of 2008, the pseudonymous creator, Satoshi Nakamoto was just publishing his white paper. We really don’t have any history of what bitcoin does in a prolonged recession. 

 

Here’s the thing. If there’s a bad recession and you lose your job… what are you really going to need in your life badly? You’re going to need more income streams - like a RE income stream. 

 

And you’re not going to be able to get a loan for a property anymore once you lose your job.

 

If high inflation persists, as any longtime listener knows, RE crushes it - income property with a loan. 

 

Yes, by now, you know that you win the Inflation Triple Crown - winning with RE 3 ways at the same time - c’mon - recite them with me - Asset Price Inflation, Debt Debasement, and Cash Flow enhancement.

 

That’s the ITC.

 

This is why rental property with a loan is the singular best investment in high inflation and a potential recession.

 

History over hunches. RE has proven itself historically. You can have a hunch. But it’s typically best to look at what happens historically over & over & over again.

 

My question for you today is: “Will this property secure an income stream?” That’s the key investment question.

 

But over the years, I’ve learned that you’ve also had a question for me. It’s something like: “Where do I find the properties conducive to securing an income stream?”

 

These are exactly the types of income property at GRE Marketplace. That’s a resource that our team & I put together for you where I share the same exact property providers with you… that I buy from myself. 

 

Gosh, I wish that this would have existed 20 years ago when I bought my first rental property through a RE agent that didn’t know what they were talking about & I wasn’t even aware of it.

 

It is free to signup just like thousands of investors already have. There’s no subscription fee and just one login gives you access to all of the property providers - and they’re typically in the profitable Midwest and South.

 

You don’t have to invest in your own local market. The best deals usually are not there.

 

When you open up your investing possibilities to the entire nation & beyond, you’re no longer limiting yourself.

 

And see, when you aren’t limiting yourself & you buy in a market with a strong rent income into a low purchase price, what have you done?

 

You’ve made your investment profitable.

 

How are you more incentivized to think when you’re profitable - you don’t cut corners. Those that aren’t making money on their rentals can be tempted to cut corners and for example, not replace faulty electrical outlets and not replace rickety porch stairs.

 

When you invest out-of-market and you’re profitable, you’re less likely to do those slumlord type of things… and that’s how this is congruent with our mission to do some GOOD in the world.

 

It’s not complete altruism. You want to be a profiteer like me. So I buy from these providers myself at GRE Marketplace.

 

Prices over there are often discounted because it’s a DIRECT model. There’s no real estate agent to pay at all. 

 

We even video-interview the PMs in the markets there for you… since that PM can manage the property for you on Day 1… if you so choose… making this largely passive for you.

 

So, armed with this best-ever question of “Will this property secure an income stream?”

 

Understand that GRE Marketplace is not like a big box store. It is more like an organic farmer’s market where we help match you with experienced property providers.

 

Much like an organic farmer’s market, you check back regularly for new offerings. It’s a vibrant market. Check back every few weeks.

 

Make this the year when you take action & think big with income property. Hey, I’ll see you over there. I’ve got a video for you over there too to help walk you through GREmarketplace.com

 

Until next week, I’m your host, Keith Weinhold. Don’t Quit Your Daydream!

Direct download: GREepisode430_.mp3
Category:general -- posted at: 4:00am EST

Greed is defined as an “intense and selfish desire for something, especially wealth, power, or food”. 

Should wealth be redistributed so that everyone is equal?

“I have never understood why it is “greed” to want to keep the money you have earned but not greed to want to take somebody else’s money.” -Thomas Sowell

When I was a fresh college graduate, I resented the rich. I discuss the catharsis that made me change my mind.

Our guest, Doug Casey, believes that college reinforces the wrong wealth mindsets.

Today, one often hears that one should “pay their fair share” of tax. What does this really mean?

If one obtains wealth with integrity, that wealthy person makes everyone else wealthy. I give the example of Jeff Bezos and Amazon.

Learn why Doug believes that Social Security is a redistribution scam.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/429

Learn more about Doug Casey:

www.InternationalMan.com

His YouTube show is: Doug Casey’s Take

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE 

or e-mail: info@RidgeLendingGroup.com

JWB’s available Florida income property:

www.jwbrealestate.com/gre or (904) 677-6777

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.com

Analyze your RE portfolio at (use code “GRE” for 10% off):

MyPropertyStats.com 

Memphis property that cash flows from Day 1:

www.MidSouthHomeBuyers.com

I’d be grateful if you search “how to leave an Apple Podcasts review” and do this for the show.

Best Financial Education:

GetRichEducation.com

Get our wealth-building newsletter free—text ‘GRE’ to 66866

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

 

Partial transcript:

 

Welcome to GRE! I’m your host, Keith Weinhold. Should we “eat the rich”? Are wealthy people greedy? And where does that belief come from? Should everyone be financially equal and taxed equally too. I answer, “Are rich people greedy?” Today, on episode 429 of the GRE Podcast.

 

Welcome to GRE! From Hartford, CT to Weatherford, TX and across 188 nations worldwide. You’re back where FF beats DF. I’m Keith Weinhold. This is Get Rich Education. Welcome to the last show of the year.

 

Are rich people greedy?

 

First, what’s the definition of greed? Well, the world’s best known search engine puts the Oxford dictionary definition at the top.

 

Yeah, I think this is a good definition. It says greed is:

 

An intense and selfish desire for something, especially wealth, power, or food. That’s the definition. And then the example of the use of the word in a sentence is “mercenaries who had allowed greed to overtake their principles”.

 

You know, the example really hints that greed is a corruption of sound morals or principles in order to get more for oneself. 

 

Greed is not good. 

 

Now, for some reason, actors and entertainers can make gigantic salaries and high-flying paydays but people don’t seem to resent them as much as entrepreneurs or CEOs that make a lot of money.

 

For some reason, the actors and entertainers as seen as lovable and the entrepreneur or CEO is deemed greedy.

 

Recently, soccer star Cristiano Ronaldo became the highest-paid athlete ever at $200M per year.

 

Yankees slugger Aaron Judge $360M over nine years.

 

Those athletes entertain others. I like watching sports. But I don’t know that they’re advancing society like the innovation that Steve Jobs brought to Apple.

 

Yet it seems like an entrepreneur could get more criticism.  

 

Now, there are bad examples too. I specifically remember when Shark Tank’s Kevin O’Leary criticized crypto. Then he seemed to do a 180. 

 

Later, we learned that Kevin O’ Leary accepted $15M to promote the crypto company, FTX, that had horrible financial records and was committing fraud. 

 

Was O’Leary greedy?

 

Then you & I need to ask ourselves, if YOU were offered $15M to do crypto commercials, then would you be incentivized to put your $15M on-hold while you did due diligence on a company that even had pro sports arenas named for them. 

 

So, when we think about what is & what isn’t greed, you also need to think about what YOU would do in these situations & hope that YOU would do the right thing. I do too.

 

Do the right thing before you do things right.

 

And, as you know from being a listener to the show here, I don’t take money from just ANY sponsor. They must be aligned with GRE’s mission here of financial freedom over debt freedom and prioritizing ideals like cash flow and prudent use of leverage.

 

Most of my income does not come from the sponsorship of this show, not even close, so I can BE selective. 

 

But what if that were one’s primary income source. You can begin to understand how they would be less selective. Could THAT degrade into greed?

 

Now, when it comes to wealth, poverty & greed, think through the prism of “redistributions of wealth”. 

 

And, in just a minute here, this is going to lead us to the greatest quote about greed that you’ve ever heard in your life.

 

How about something like college student loan forgiveness, which, depending on the borrower’s status is up to either $10K or $20K. It looked like that was going through and then it got held up in the courts.

 

Well, what about those that didn’t go to college because they didn’t want debt.

 

But now, if every American effectively gets taxed at a higher rate to pay for student loan forgiveness, then the people that decided not to go to college in order to avoid the debt have to pay for those that did decide to go to college & take on the debt.

 

Now, as you hold that thought, here is what American economist and academic Thomas Sowell said about greed. Sowell said:

 

I have never understood why it is greed to keep the money you have earned but not greed to want to take somebody else’s money.

 

Yeah, gosh that’s good. And the first time I heard that years ago, I found it remarkably thought-provoking.

 

Therefore, you can at least ask the question then, just posit the question, is it greed for someone to EXPECT student loan forgiveness?

 

Well, International Man Doug Casey is waiting in the wings here. Later on the show, he & I are going to volley this “eat the rich” topic back & forth.

 

BTW, have you ever realized that no one wants to be called rich or poor. If you call someone “rich”, they’re uncomfortable and they like to spurn what you just said.

 

If you call someone poor, that’s seen as a pejorative & quite hurtful.

 

Everyone wants to be known as middle class. No one want to be called rich or poor - but almost anyone would rather have more money than less.

 

The song says, “Mo money, mo problems.” But I think most people would accept $10M if you offered it to them right now. Yeah, I’ll try living with that problem.

 

Well, when Doug comes on with my shortly, I’ll tell you about my cathartic experience with “Are wealthy people greedy” - and how my turning point was about that light bulb moment with regard to “opportunity”.

 

Virtually all 8 billion people on this earth have the opportunity to make their life better.

 

But I think it’s important to acknowledge that some people have more opportunities than others.

 

The United States is one world nation with more robust opportunities than average.

 

Look, if you were born in the US, or even if you emigrated to the United States, globally, you won the “opportunity lottery”. 

 

That’s because the US only has 4% of the world’s population.

 

It’s not much different in Canada, which has less than 1% of the world’s population.

 

Then, within the US, I won what I call the “parent lottery”. No, it is not because I was born wealthy. I was not. Not even CLOSE.

 

It’s because I was born to two parents that provided a stable home, were married & committed to each other before they had me, and nurtured the environment where I could thrive & fail & succeed & learn and not have to deal with dysfunction of any kind.

 

I’m really grateful for that.  

 

Now, what about real estate investors today? Do you deserve to prosper?

 

Think about how made time to listen this show because you care about your future.

 

Your future is worth caring about… because you’re going to spend the rest of your life there.

 

Then you established good credit in order to get a mortgage loan.

 

Then you took on the risk of repaying a mortgage loan.

 

Then you took on property owner risk during COVID and inflation and a possible recession… all to do good and provide housing for others.

 

So… do you deserve to prosper and build wealth for doing all of that for others? For strangers even?

 

Hey, if you did, you overcame many people’s almost inherent laziness. Got up early, worked hard at times, took risk, how about confronting your PM? Or confronting your tenant?

 

If you learned how to make the world a better place & helped others, is that greed to prosper? No. Not at all.

 

Our guest, prolific author & thought influencer, International Man Doug Casey, I saw in an article where he quoted his contemporary Rick Rule. Rule said: “Eat the rich. Prepare to starve.”

 

That gives you a clue as to where Doug Casey is coming from. That’s straight ahead.

 

I’m Keith Weinhold. There will only ever be one GRE Episode 429… and you’re listening to it.

 

Direct download: GREepisode429_.mp3
Category:general -- posted at: 4:00am EST

Higher returns and lower risk are expected with carefully-chosen real estate.

Two hosts put me on the hot seat about rental property. I’m the guest. You get to listen to one of my recent interviews in the media today.

Real estate deals are not as attractive today as they were 5-10 years ago. But it’s still the best place to invest your dollars today.

The property is only the fourth-most important thing in real estate investing. I discuss the three bigger ones.

I detail why real estate returns are multiples higher than those from the S&P 500.

Learn why a total return of anything less than 20% in real estate is actually disappointing. 

Housing inventory is up year-over-year, down over the past five years.

From 1 (worst quality) to 10 (best quality), a 4 yields the best cash flow in long-term rentals. I describe why.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/428

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE 

or e-mail: info@RidgeLendingGroup.com

JWB’s available Florida income property:

www.jwbrealestate.com/gre or (904) 677-6777

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.com

Analyze your RE portfolio at (use code “GRE” for 10% off):

MyPropertyStats.com 

Memphis property that cash flows from Day 1:

www.MidSouthHomeBuyers.com

I’d be grateful if you search “how to leave an Apple Podcasts review” and do this for the show.

Best Financial Education:

GetRichEducation.com

Get our wealth-building newsletter free—text ‘GRE’ to 66866

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode428_.mp3
Category:general -- posted at: 4:00am EST

Metaverse real estate is virtual. Can you make money with it?

First, I discuss updates to 3-D printed homes and Boxabl homes.

Next, our guest, Steve Hoffman, describes that metaverse is a virtual space where you can interact with virtual objects.

There is no single metaverse. There are apps in the metaverse, like Second Life and Decentraland.

Learn what makes a piece of metaverse real estate valuable or worthless.

You often buy NFTs on the blockchain.

With Upland, you can buy NFTs of real properties, like the Statue Of Liberty or Dodger Stadium.

Our guest feels that metaverse real estate investing is highly speculative. It is risky and often akin to gambling.

Metaverse economies are subject to monetary inflation.

Does metaverse RE have any value?

Steve runs the global innovation hub, Founders Space.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/427

Learn more about Steve Hoffman:

FoundersSpace.com

A current popular metaverse app:

https://decentraland.org

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE 

or e-mail: info@RidgeLendingGroup.com

JWB’s available Florida income property:

www.jwbrealestate.com/gre or (904) 677-6777

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.com

Analyze your RE portfolio at (use code “GRE” for 10% off):

MyPropertyStats.com 

Memphis property that cash flows from Day 1:

www.MidSouthHomeBuyers.com

I’d be grateful if you search “how to leave an Apple Podcasts review” and do this for the show.

Best Financial Education:

GetRichEducation.com

Get our wealth-building newsletter free—text ‘GRE’ to 66866

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

 

Direct download: GREepisode427_.mp3
Category:general -- posted at: 4:00am EST

At times, 3-D printed homes, modular, and shipping container homes are not the answer for both single-family home and apartment construction.

The promise of new truss and framing technology can substantially speed up conventional construction.

This can solve many problems at once: housing shortage, labor shortage, and stubbornly persistent materials supply shortages.

FrameTec is a technology that builds the roof truss, floor truss, and walls all in a forthcoming Arizona factory.

Guests Damion Lupo and David Morris tell us about it today.

The FrameTec process uses solar technology and reduces material waste.

Learn more at FrameTec.com. It’s possible that there is still room for accredited investors. This is Made In America technology.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/426

Learn more about FrameTec:

www.FrameTec.com

Join me live on Thursday’s Florida properties webinar:

www.GREwebinars.com

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE 

or e-mail: info@RidgeLendingGroup.com

JWB’s available Florida income property:

www.jwbrealestate.com/gre or (904) 677-6777

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.com

Analyze your RE portfolio at (use code “GRE” for 10% off):

MyPropertyStats.com 

Memphis property that cash flows from Day 1:

www.MidSouthHomeBuyers.com

I’d be grateful if you search “how to leave an Apple Podcasts review” and do this for the show.

Best Financial Education:

GetRichEducation.com

Get our wealth-building newsletter free—text ‘GRE’ to 66866

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

 

Direct download: GREepisode426_.mp3
Category:general -- posted at: 4:00am EST

Get an update on how the work-from-home trend is good for residential RE and bad for office RE. 

Office space values are down 17.5% from their recent peak.

Americans must now earn at least $107,281 to afford the monthly mortgage payment on a median-priced home.

The NAR expects 10% home price appreciation this year, 1% in 2023, and 5% in 2024.

The tiny home movement is both architectural and structural. It’s defined as a home of 400 sf or less.

Tiny homes are hard to find. In the US today, just 0.3% of listed homes are tiny homes.

You can own a new-build tropical tiny home near the beach in Nicaragua for under $200K.

Our own COO, Aundrea, bought one. She tells us about it.

It’s on Nicaragua’s west coast. It’s not just an isolated tiny home experience. 

There’s a community with a: restaurant, bar, bird watching area, butterfly garden, viewing tower, yoga area, and communal garden. 

Often, loans aren’t available for foreigners. Here, you can get 50% or 80% loans.

You can live in this tropical tiny home year-round, or keep it as a short-term rental. The provider can manage your rental.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/425

Get started with tropical tiny homes at:

GREmarketplace.com/tinyhomes

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE 

or e-mail: info@RidgeLendingGroup.com

JWB’s available Florida income property:

www.jwbrealestate.com/gre or (904) 677-6777

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.com

Analyze your RE portfolio at (use code “GRE” for 10% off):

MyPropertyStats.com 

Memphis property that cash flows from Day 1:

www.MidSouthHomeBuyers.com

I’d be grateful if you search “how to leave an Apple Podcasts review” and do this for the show.

Best Financial Education:

GetRichEducation.com

Get our wealth-building newsletter free—text ‘GRE’ to 66866

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode425b_.mp3
Category:general -- posted at: 4:00am EST

The ideal inflation rate is zero just like the ideal theft rate is zero.

When lower inflation (7.7%) was recently reported, mortgage rates experienced a record daily drop.

I detail the implosion of crypto exchange, FTX. It was a Ponzi scheme. 2022 is the 2008 of crypto.

Garrett Sutton and his son, Ted Sutton, announce the father-son succession plan. They are attorneys that help protect your real estate from lawsuits at Corporate Direct.

Ted’s experience at a Chilean copper mine helped make him pivot from a mining engineering track and into law.

RE investors have three main lines of defense: 1) Ethical operations. 2) Insurance. 3) LLC.

Learn how to properly form and maintain an LLC.

Don’t try to win a lawsuit. Avoid it in the first place.

Learn why landlords get sued today.

Corporate Direct provides free 15-minute consultations.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/424

Corporate Direct protects your biz & real estate from lawsuits:

Corporate Direct 

Garrett Sutton’s newest book:

Veil Not Fail

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE 

or e-mail: info@RidgeLendingGroup.com

JWB’s available Florida income property:

www.jwbrealestate.com/gre or (904) 677-6777

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.com

Analyze your RE portfolio at (use code “GRE” for 10% off):

MyPropertyStats.com 

Memphis property that cash flows from Day 1:

www.MidSouthHomeBuyers.com

I’d be grateful if you search “how to leave an Apple Podcasts review” and do this for the show.

Best Financial Education:

GetRichEducation.com

Get our wealth-building newsletter free—text ‘GRE’ to 66866

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode424_.mp3
Category:general -- posted at: 4:00am EST

A housing crash is upon us. But it may not be the kind of crash that you think. I explain what this sales crash means to the future of the housing market.

Caeli Ridge, President of Ridge Lending Group joins us. She gives an exact prediction about where and when mortgage interest rates will peak.

37% of homeowners have no mortgage at all. Among those with a mortgage, 85% have an interest rate under 5% per Redfin. They don’t want to sell and give up their rate, constraining supply.

It’s a nationwide lock-in effect. 

A housing PRICE crash is not expected. Existing homeowners can afford their mortgages and have record equity. This is reflected in the low delinquency rate.

The average age of first-time home buyers hit a record 36.

Caeli Ridge tells you how to get a lower mortgage interest rate with different loan types.

Investors keep their loan an average of 5-6 years.

Ridge offers mortgage loans specifically for investors: plain fixed rates, non-recourse, DSCR, asset depletion, bridge loans, commercial loans, cross-collateralization of residential properties, and the All-In-One Loan which operates like a first lien HELOC. 

See how much interest you save with the All-In-One Loan interactive simulator here: https://ridgelendinggroup.com/aio-loans/

Caeli sees lots of appraisals. They’ve all been coming in “on-value”.

When it comes to higher mortgage rates, get used to it. The long-term average is 7.7%. 

Ridge Lending is where I get loans for my own properties. You can use them too. Start at RidgeLendingGroup.com or (855) 747-4343. 

Resources mentioned:

Show Notes:

www.GetRichEducation.com/423

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE 

or e-mail: info@RidgeLendingGroup.com

JWB’s available Florida income property:

www.jwbrealestate.com/gre or (904) 677-6777

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.com

Available Central Florida new-build income properties:

www.b2rdirect.com

Analyze your RE portfolio at (use code “GRE” for 10% off):

MyPropertyStats.com 

Memphis property that cash flows from Day 1:

www.MidSouthHomeBuyers.com

I’d be grateful if you search “how to leave an Apple Podcasts review” and do that for the show.

Best Financial Education:

GetRichEducation.com

Get our wealth-building newsletter free—text ‘GRE’ to 66866

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode423_.mp3
Category:general -- posted at: 4:00am EST

Get our wealth-building newsletter free—text ‘GRE’ to 66866.

Money is an abundant resource, not a scarce one.

If you believe that money is so scarce that it’s more valuable than time, I provide the solution to that quandary today.

Today’s guest, Victor Menasce, believes that today’s macroeconomic environment dominates local stories.

We discuss how to navigate today’s higher mortgage interest rate environment.

Banks could be on the brink of a concerning liquidity crisis today.

Should central banks set interest rates or can free markets perform that role better?

Learn what financial actions you can take in this era of global instability.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/422

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE 

or e-mail: info@RidgeLendingGroup.com

JWB’s available Florida income property:

www.jwbrealestate.com/gre or (904) 677-6777

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.co

Available Central Florida new-build income properties:

www.b2rdirect.com

Analyze your RE portfolio at (use code “GRE” for 10% off):

MyPropertyStats.com 

Memphis property that cash flows from Day 1:

www.MidSouthHomeBuyers.com

I’d be grateful if you search “how to leave an Apple Podcasts review” and do that for the show.

Listen to Victor’s Real Estate Espresso podcast.

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

 

Direct download: GREepisode422_.mp3
Category:general -- posted at: 3:00am EST

Get our wealth-building newsletter free. Text ‘GRE’ to 66866.

You can help abolish the term “slumlord”. Profit by providing housing that’s clean, safe, affordable, and functional.

Compared to the world, US mortgage terms are so advantageous that they almost feel illegal. 

I compare this with: Canada, UK, Ireland, Spain, Australia, South Korea, Germany, France, Switzerland, and Japan.

Are we in a recession? There continues to be dissonance in the economy.

College enrollment keeps declining. But now, 46% of parents even hope that their child does not pursue a four-year degree after high school.

A woman faced with eviction released a bee swarm on law enforcement.

It costs $1.7M to build a small public lavatory in San Francisco.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/421

$1.7M public toilet in San Francisco:

https://www.theguardian.com/us-news/2022/oct/24/san-francisco-1-million-public-toilet

Woman being evicted releases bee swarm:

https://www.usatoday.com/story/news/nation/2022/10/20/woman-releases-bees-police-massachusetts/10549905002/

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE 

or e-mail: info@RidgeLendingGroup.com

JWB’s available Florida income property:

www.jwbrealestate.com/gre or (904) 677-6777

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.co

Available Central Florida new-build income properties:

www.b2rdirect.com

Analyze your RE portfolio at (use code “GRE” for 10% off):

MyPropertyStats.com 

Memphis property that cash flows from Day 1:

www.MidSouthHomeBuyers.com

I’d be grateful if you search “how to leave an Apple Podcasts review” and do that for the show.

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

 

Direct download: GREepisode421_.mp3
Category:general -- posted at: 4:00am EST

In times of high inflation, don’t rents have to collapse? Tenants are getting squeezed, paying more for food, gas, medical care, and everything else. Won't rents have to fall?

Will this create a crisis for landlords too? If tenants can’t pay the rent, landlords must still pay property expenses. 

Historically, what happens is opposite of what most think. So I explore what happened in high inflation 40+ years ago to forecast what will likely happen in the future.

There are three reasons why rents soar in high inflation: 1) tenants move down a class, 2) doubling up as roommates, and 3) today’s low housing supply and high demand.

Rents are up 12% year-over-year today for both SFRs and apartments.

Real Estate Pays 5 Ways™, not four or six.

Get started with income property in Baltimore, Philadelphia, and Pittsburgh at: www.GREmarketplace.com/Coach Our in-house coach, Naresh, will help you. His services are free.

Both urban and suburban properties are available.

Urban areas often have a high Walk Score.

The rent-to-price ratios in these three mid-Atlantic markets often exceed 0.9% and even 1%. Before you buy, you already have an inspection report, desktop appraisal, and placed tenant’s payment history in-hand. 

These rowhouses are often priced at a 20% discount. 3 bed / 1 bath is common.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/420

Get started with income property in Baltimore, Philadelphia, and Pittsburgh at: www.GREmarketplace.com/Coach

Rents In High Inflation:

https://www.realpage.com/analytics/rents-move-high-inflation-market-look-1970s/

Current US housing supply:

https://fred.stlouisfed.org/series/ACTLISCOUUS

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE 

or e-mail: info@RidgeLendingGroup.com

JWB’s available Florida income property:

www.jwbrealestate.com/gre or (904) 677-6777

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.co

Available Central Florida new-build income properties:

www.b2rdirect.com

Analyze your RE portfolio at (use code “GRE” for 10% off):

MyPropertyStats.com 

Memphis property that cash flows from Day 1:

www.MidSouthHomeBuyers.com

I’d be grateful if you search “how to leave an Apple Podcasts review” and do that for the show.

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

 

Direct download: GREepisode420_.mp3
Category:general -- posted at: 4:00am EST

Are you a quitter? Today’s show can make that feel aspirational. Quit a job you hate for the work you love.

Author of “The Quitter’s Manifesto” and GoBundance Founder, Tim Rhode, joins me today.

For context on quitting your job, start with the I/O Quotient.

The Soul Sucking Meter: Are you being paid enough? Are you respected? Are you a good cultural fit at your workplace? How does it feel when you wake up to go to work? Could you do your job for decades? 

I quit my job for two main reasons: 1) Try it. 2) Be irreplaceable.

Tim describes that quitting your job is like catching the next trapeze. 

Want growth? Try something new and scary. You did this as a kid. For example, when you were 11 years old, you swam in water over your head. 

Take out a home equity loan before quitting your job. Put those funds into another bank. This builds your financial cushion during a lifestyle change.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/419

Tim Rhode’s book, The Quitter’s Manifesto:

QuittersManifestoBook.com

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE 

or e-mail: info@RidgeLendingGroup.com

JWB’s available Florida income property:

www.jwbrealestate.com/gre or (904) 677-6777

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.co

Available Central Florida new-build income properties:

www.b2rdirect.com

Analyze your RE portfolio at (use code “GRE” for 10% off):

MyPropertyStats.com 

Memphis property that cash flows from Day 1:

www.MidSouthHomeBuyers.com

I’d be grateful if you search “how to leave an Apple Podcasts review” and do that for this show.

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode419_.mp3
Category:general -- posted at: 4:00am EST

Homebuilder confidence is low. I talk to one today. Then, learn how a home is built.

Join our Jacksonville properties webinar Oct. 20th. Sign up free at: GREwebinars.com.

Text “GRE” to 66866 for our free “Don’t Quit Your Daydream” e-mail letter.

After discussing the best place to invest today, learn how a home is actually built.

Learn how a home is built: zoning, land acquisition, permitting, engineering, drainage, clearing & grubbing, adding earth fill, soil compaction, trenching, adding sanitary systems, stormwater system, lift station, conduit, electrical, foundation, slab-on-grade, plumbing, framing, block, roof truss.   

Homebuilder confidence is low among those that sell to owner-occupants. That’s due to higher mortgage interest rates. 

Among homebuilders that sell to investors, it’s better. Why? Higher rates mean higher rents.

Tenant demand for fourplexes is strong. In inflation and a possible recession, more people must live frugally.

Get started with new-build Florida income property (SFR to fourplex) with today’s guest at: GREmarketplace.com/Southeast.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/418

Today’s guest provider offers new-build Florida property at:

www.GREmarketplace.com/Southeast

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE 

or e-mail: info@RidgeLendingGroup.com

JWB’s available Florida income property:

www.jwbrealestate.com/gre or (904) 677-6777

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.co

Available Central Florida new-build income properties:

www.b2rdirect.com

Analyze your RE portfolio at (use code “GRE” for 10% off):

MyPropertyStats.com 

I’d be grateful if you search “how to leave an Apple Podcasts review” and do that for this show.

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

 

Direct download: GREepisode418_.mp3
Category:general -- posted at: 4:00am EST

You want to increase your expenses. I reiterate why.

All five ways that real estate pays are rarely surging at the same time. In the past year, appreciation has slowed, cash flow rose, principal paydown slowed, tax benefits are roughly the same, and inflation-profiting rose.

How do you become a “laptop landlord” and know that you’re buying a good property?

I share my favorite resources for real estate due diligence (laptop landlording). They’re all in the “Resources Mentioned” below.

One mistake people make is that they tend to overgeneralize. They paint an entire city one color, saying something like: “I read that Memphis has high crime.” Well, where within Memphis?

You can contract with an out-of-state stranger to check out a property for you at WeGoLook.com

Aundrea Newbern, COO of GRE, MBA, NAR member (the woman with all the letters behind her name) joins me. She discusses her top real estate successes and failures.

We discuss floods, old cast iron pipes, partnerships, single-family vs. multifamily, LTRs vs. STRs, and the opportunity cost of waiting to buy property. 

At times, if third-party inspectors see an issue, they refer you to specialists like foundation or mechanical inspectors.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/417

Due diligence resources: ATTOM Data Solutions, Redfin, CoreLogic, Zumper, Altos Research, John Burns RE Consulting, Neighborhood Scout, Google Street View, WeGoLook.com, bls.gov, US Census, FRED, GREmarketplace.com 

I’d be grateful if you search “how to leave an Apple Podcasts review” and do that for this show.

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE 

or e-mail: info@RidgeLendingGroup.com

JWB’s available Florida income property:

www.jwbrealestate.com/gre or (904) 677-6777

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.co

Available Central Florida new-build income properties:

www.b2rdirect.com

Analyze your RE portfolio at (use code “GRE” for 10% off):

MyPropertyStats.com 

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode417_.mp3
Category:general -- posted at: 4:00am EST

Residential real estate has greater usefulness and is easier to understand than: agricultural, office, retail, industrial, and warehouse real estate sectors.

Tenants are staying in both SFRs and apartments longer than before. I discuss three reasons for today’s longer tenant retention trend.

Higher mortgage rates correlate with higher home prices. In fact, in the nine times mortgage rates increased 1%+ since 1994, home prices rose seven of those nine.

During recessions, mortgage rates typically fall. Both are opposite of what most people think.  

Resort communities are almost declaring war against short-term rentals. I explore the depth of the problem and discuss solutions.

Are the wealthy at fault? 

People that grew up in an area cannot afford housing in these STR hotbeds.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/416

How to Raise The Rent and Keep Tenants Happy (Video):

https://youtu.be/sqFwbn4yFhA

40-Year Mortgages:

https://www.housingwire.com/articles/newrez-

debuts-40-year-non-qm-mortgage-product/

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE 

or e-mail: info@RidgeLendingGroup.com

JWB’s available Florida income property:

www.jwbrealestate.com/gre or (904) 677-6777

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.co

Available Central Florida new-build income properties:

www.b2rdirect.com

Analyze your RE portfolio at (use code “GRE” for 10% off):

MyPropertyStats.com 

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

 

Direct download: GREepisode416_.mp3
Category:general -- posted at: 4:00am EST

Car washes can be remarkably lucrative. This is enhanced with a franchise model and selling subscriptions to car wash customers.

“There is no other operation on a 1-acre site that can do 1 million to 2.5 million in sales and pocket half of that.” -WSJ story

Like other real estate, a car wash location is vital.

Much like apartment buildings, car washes are valued based on their income stream amount.

You can participate yourself. Start here: https://gremarketplace.com/carwash. Must be accredited, minimum $100K investment.

Tommy’s Car Wash is an innovative franchise. Customers use a mobile app.

Only Panera Bread and Chick-fil-A have higher sales revenue per location. (Wow!)

Car washes have high cash flow and tax efficiency.

Pro forma returns for individual investors like you have a 1.75x return on investment in five years or less. There is 100% bonus depreciation in year one. 

Learn more and get started at: https://gremarketplace.com/carwash

Resources mentioned:

Show Notes:

www.GetRichEducation.com/415

Get started with car washes:

www.GREmarketplace.com/carwash

WSJ on car washes:

https://www.therealassetinvestor.com/wp-content/uploads/2022/08/Private-Equity-Wants-to-Wash-Your-Car-WSJ.pdf

WSJ on laptop landlords:

https://www.wsj.com/articles/everyones-a-landlordsmall-time-investors-snap-up-out-of-state-properties-11661705278

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE 

or e-mail: info@RidgeLendingGroup.com

JWB’s available Florida income property:

www.jwbrealestate.com/gre or (904) 677-6777

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.co

Available Central Florida new-build income properties:

www.b2rdirect.com

Analyze your RE portfolio at (use code “GRE” for 10% off):

MyPropertyStats.com 

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

 

Direct download: GREepisode415_.mp3
Category:general -- posted at: 4:00am EST

Join me live on our St. Louis properties webinar this Wednesday at: GREwebinars.com

The Fed is out to crush lingering inflation. Coming rate hikes will likely lead us into a recession, if we’re not there already.

Home price gains have stalled. This is worse for sellers and better for buyers. 

Landlords are winning in today’s market; renters are losing. 

CoreLogic’s Single-Family Rent Index shows a 13.4% YOY national rent gain. Single-family rents are up $500+ over the past six years. 

For a long time, investing in hardwood trees was primarily for big money hedge funds and family offices. 

You can own the title to quarter-acre parcels with teak trees that grow on top of them for just $6,880.

Timber prices are often counter-cyclical to markets. They keep growing through recessions, market collapses, and fluctuating interest rates.

Teak hardwood has natural oils that make it fire and rot resistant. In Panama, they thrive where there is about six months of rain and then six months of dryness.

The operator that I interview today has been involved with teak plantations since 1999. I first met him in-person six years ago.

Learn more. Get the investor report at: www.GREmarketplace.com/Teak

It costs $6,880 to own one new teak parcel. Optionally, you can own 16-year-old teak parcels for ~$20K.

$6,880 is projected to grow into $94,000 over twenty-five years.

Teak appreciates at 5.5% per year, 11% IRR.

This is a remarkable way to own timber real estate and invest in another nation with a low cost of entry.

They offer in-person teak tours in Panama. You can see your own trees.

Resources mentioned:

Get started with teak:

www.GREmarketplace.com/Teak

Show Notes:

www.GetRichEducation.com/414

New—Join GRE Webinars:

www.GREwebinars.com

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE 

or e-mail: info@RidgeLendingGroup.com

JWB’s available Florida income property:

www.jwbrealestate.com/gre or (904) 677-6777

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.co

Available Central Florida new-build income properties:

www.b2rdirect.com

Analyze your RE portfolio at (use code “GRE” for 10% off):

MyPropertyStats.com 

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode414_.mp3
Category:general -- posted at: 4:00am EST

A GRE listener since 2015, Christian Montalvo and her family are growing their real estate portfolio in the Dallas-Fort Worth area.

She has been a food microbiologist. Christian works for a company that cleans food processing plants. Her husband is a W-2 employee too, a financial analyst.

After being a renter for about $1,000 / month in a tiny DFW apartment, they began with buying a $200K owner-occupied duplex with a 3.5% down payment.

Next, they bought a fourplex. At this point, they have five rent incomes. They kept growing.

Today, she and her husband still work their W-2 jobs. But as a young, married couple, they now have the flexibility such that they don’t both have to work.

We discuss if they invest in 401(k)s and conventional retirement plans.

I give many examples of “growing your means” instead of “living below your means”.

Last year, Christian became a real estate agent. She works with investor clients.

 Resources mentioned:

Show Notes:

www.GetRichEducation.com/413

Christian Montalvo’s e-mail address:

christian@fraserrealty.com

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE 

or e-mail: info@RidgeLendingGroup.com

JWB’s available Florida income property:

www.jwbrealestate.com/gre or (904) 677-6777

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.co

Available Central Florida new-build income properties:

www.b2rdirect.com

Analyze your RE portfolio at (use code “GRE” for 10% off):

MyPropertyStats.com 

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode413_.mp3
Category:general -- posted at: 4:00am EST

“How long are you going to wait until you demand the best from yourself?” -Epictetus

I share 18 lessons with my 18-year-old self. 

#2 is: Don’t fear being different. That’s your advantage.

#4 is: No one cares about your college grades.

#14 is: Finding the truth is more important than being right.

#17 is: What does life want from you?

National median home prices eased from June to July—from $414K to $404K. 

Homebuilders are in a recession.

However, available housing supply is still low and demand is high.

Almost every human is forgotten in four generations.

Is a housing price crash imminent? You get a clear “yes” or “no” answer.

The NAR says that today’s first-time homebuyer is: 33 years old (oldest ever), $86,500 household income, $252K median purchase price, 7% down payment, and 37% carry student debt. Average size is 1,640 sf.

If you’d like to advertise with us, visit: GetRichEducation.com/Contact

 Resources mentioned:

Show Notes:

www.GetRichEducation.com/412

Median sale price eases:

https://www.wsj.com/articles/existing-home-sales-prices-housing-market-july-2022-11660774574

Median US house price historic chart:

https://fred.stlouisfed.org/series/MSPUS

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE 

or e-mail: info@RidgeLendingGroup.com

JWB’s available Florida income property:

www.jwbrealestate.com/gre or (904) 677-6777

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.co

Available Central Florida new-build income properties:

www.b2rdirect.com

Analyze your RE portfolio at: (use code “GRE”):

MyPropertyStats.com 

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

 

Today’s episode transcript:

 

Welcome to GRE! I’m your host, Keith Weinhold. Learn 18 profound life lessons I’ve learned that I wish I could share with my 18-year-old self… and… has the time come? 

 

After the looong & sometimes steep housing price runup, is a housing price crash finally imminent? And what’s the future direction of the housing market? Today, on Get Rich Education.

___________________

 

Welcome to GRE! From Red Deer, Alberta to Red Rock State Park, AZ and across 188 nations worldwide… I’m Keith Weinhold. THIS is Get Rich Education.

 

The voice of real estate investing… 412 weeks in a row… since 2014.

 

I hope that you’re having a great week!

 

You know, I have seemingly been a late bloomer in almost every way in life that you can conceive.

 

But as some say, “many people never bloom at all”. Alright, well enough. But look…

 

I was almost 18 years old when I graduated high school, just like - perhaps you - and many people are. But I looked like I was 13 then. 

 

I was among the very last in my class to experience puberty there at Coudersport High School, Pennsylvania. 

 

This is one reason that I could not attract a high school girlfriend or get a prom date. Even though… I asked a girl to prom and she said “no”. 

 

As underdeveloped and impressionable as I was then, here are 18 lessons that I want to share with my 18-year-old self.

 

I wish that I could share these lessons that I’ve learned now with my 18-year-old self:

 

  1. You Know Nothing. But You're Not Alone. You have so much to learn, 18-year-old Keith. So don't act like you know it all. Society actually likes when you're genuinely inquisitive and want to learn.

 

What about you? Can’t you sense when someone acts like a know-it-all? It’s not something that you want to be around. Back to advising my 18-year-old self.

 

  1. Don't Fear Being Different. That's Your Advantage. In high school and even college, winners fit in. In the real world, winners stand out. In fact, avoid normalcy. It's a synonym for mediocrity.

 

  1. Work To Learn. After that, work to earn.

 

  1. No One Cares About Your College Grades. For your interests, college is optional, not mandatory—regardless of what your friends are doing. Find an energy for learning. Be autodidactic (an autodidact means a self-taught person). Focus on becoming a person of value.

 

  1. Keep Moving. Health is wealth. Prioritize physical exercise over moneymaking. No matter WHAT you choose to do, you'll be living inside that same body when you're age 100.

 

  1. Failure Can Be Alright, Even Good. In school, you learned that mistakes are bad and should be avoided. A failure that you recuperate from demonstrates that you tried. You learned a lesson. In fact, DECORATE your failures so much that you should go ahead and tell others how bad you failed; they'll either relate to you or they’ll learn from you.

 

  1. Don't Follow Paths Others Have Made. Others guide you. But create your own map. If you're soullessly trading your time for dollars at a job, you need to design yourself an escape route so that you can quit as soon as possible. If you’re selling your time that way - stop it. Your life is made up of chapters of time. This is not a dress rehearsal. This is your life.

 

  1. Research, Commit, Then Be Consistent. Prepare for disappointment. Most people won't be as committed as you. Showing up on time is a commitment, so is marriage.

 

  1. Learn About Investing In Real Estate. Everyone needs it. It's made more ordinary people wealthy than anything else.

 

  1. Keep Real Estate And Emotions Separate. Facts trump feelings. It's 99% about: market, management, and income exceeding expenses.

 

  1. Make Grandma Proud. Pretend that she's watching you. Live a life that's exemplary in what you say and do. You might remember me mentioning my late Grandma Weinhold here on the show.

 

  1. Be Present. Don't over-anticipate future moments and events. They are less important than the present. Otherwise, you'll miss out on your entire life. Your life will never not be now. Appreciate "now".

 

  1. Who Your Friends Are Matters. Jim Rohn said: "You are the average of the five people that you spend the most time with." Take the average of your closest five's: values, their athleticism, their ethics, wealth, fashion sense, travel, neighborhood quality, and family structure—that's nearly who you will BECOME.

 

  1. Finding The Truth Is More Important Than Being Right. People respect you when you say: "I was wrong. Here's why." more than trying to defend some antiquated or faulty belief.

 

  1. Give. Money is an abundant resource. You will have a great ability to give. Generosity is championed in the Bible. It's Aristotle's third virtue. It will make you feel happy, it's good for your health, contagious, and spurs gratitude. This ossifies your net "value add" to the world.

 

  1. Mentors Matter. Others see you in a way that you cannot. You'll simply never be able to see yourself in a way that others can. You’ll meet people smarter than you; ask them for their help.

 

  1. What Does Life Want From You? As I learned from Eckhart Tolle, don't ask: "What do I want from life?" A more powerful question is: "What does life want from me?" (And you’ll remember that I mentioned this one last week on the show here and took a deeper dive on it.)

 

And the 18th and final lesson that I’d like to go back and share with my 18-year-old self is… Build. Anthropologists suggest that almost every person is forgotten after three generations. At your trajectory, what will your legacy be? Why and how will you be remembered?

 

They are the 18 lessons.

 

The stoic Epictetus said one of the most profound motivational things ever… and it’s in the form of a question. Epictetus said: "How long are you going to wait before you demand the best for yourself?" Yeah, that is his question.

 

At least here on this Earth, this is your last life ever. 

 

Now, as much as some of those 18 might resonate with you… and maybe you want to share those with someone in your life… I’ve seriously got to ask…

 

(Laugh) If I had read those as an 18-year-old, knowing that I wrote them a couple decades later, would I have ever listened to those as an 18-year-old? 

 

I don’t know. I probably wouldn’t have changed my behavior on some of them… but a few.

 

I’ve also got to wonder, in another 20 years, will these change? 20 years from now, would I be advising my 18-year-old self any differently?

 

Now, I discussed in there how anthropologists suggest that most every human is forgotten in 3 to 4 generations.

 

Sadly, quite a few people are forgotten 3 to 4 minutes after their death. And many more, within 3 to 4 hours, 3 to 4 days, or 3 to 4 weeks after their death. Of course, your children will remember you longer, and your spouse of, say, 50 years will remember you longer.

Realistically, LOTS of people are soon forgotten because they never did anything worth remembering. 

Good people are forgotten. People that never caused any trouble or uproar. 

They kept their lawns mowed. They kept their cars clean. 

But nothing notable worth remembering, like caring for lost animals or handicapped children or always remembering their friends’ birthdays.

For a thoughtful person, it is wise to consider from time to time “what have I done recently, that people will want to remember?”. Of course, we should all do every day all those things necessary to be a good neighbor, a good landlord, and a good citizen. 

If you don’t do that, you may be remembered because you were such a slob, or took care of your house so badly, or didn’t bother to shave and shower regularly.

But assuming you are doing everything so that absolutely no one will be offended or annoyed, then you have to do something special if you are going to be remembered for longer than a few days or a few weeks.

Let’s recognize something. Abraham Lincoln died six or seven generations ago. He is remembered with respect and honor. 

John Wilkes Booth died just a few days after Lincoln. He is remembered with scorn and despising. So it is a mixed blessing, for you to be remembered. For most people, they would prefer to be forgotten rather than remembered as a deviant or a monster or a social parasite.

My own guess is that VERY FEW people are remembered well, for as long as four generations. 

They may be listed in a family genealogy, but beyond being a statistical item, the individuals and who they are have been long forgotten.

It’s been said that "The greatest waste in the world is the difference between who you are and who you could become."

Now, be real with me. Is what I’m telling you making you pensive and even melancholy about your own mortality?

How do you feel… in your heart… right now? How do you feel… in your stomach… right now? What’s your mind telling you here?

 

Cheer up a little. I want you to take some solace in the fact that…

I believe there are more important things than for you to be REMEMBERED for decades and for generations. 

But doing those more important things — helping other people, making a better world, advancing the store of useful knowledge — will usually lead to YOU being remembered, long after you have passed into your next life.

That is probably the person that you strive to be here on Earth… after all.

If you’re still feeling like you’re not enough… well… I don’t have all of the answers. But you just got 18 lessons so that you can listen to those again and see which ones fit into your life.

I’ll be back with some GRE core content about real estate and a housing price crash.

I’m Keith Weinhold. You are listening to Get… Rich… Education.

_________________

 

You’re listening to one of America’s longest-running and most listened-to real estate shows. Welcome back to GRE. I’m your host and my name is Keith Weinhold. I am genuinely grateful for your listenership. 

 

There will only ever be one Episode 412 of Get Rich Education… and you’re listening to it.

 

If you’d like today’s Show Notes, simply go to GetRichEducation.com/412. It includes not just today’s supplemental resources, but the entire transcript of today’s episode.

 

Some people like to say: "Housing prices. They don't matter to cash flow investors."

 

To that, I say. C'mon now.

 

Price might not be the principal consideration. But price matters. If it didn't, why not just pay triple the asking price on your next property purchase?

 

Why does every classified ad have a price in it? 

 

Of course, real estate price matters-even to cash flow-centric investors- when you’re buying, you’re selling, or for you to have an adequate equity cushion for refinancings.

 

US home sales dropped last month. That's nothing new. That just means sales volume.

 

Housing supply is part of the reason for volume drop. Available supply is still just half - or less - of what's needed and it will be a multi-year problem.

 

I’ve discussed that before. The dearth of supply is an inelastic condition - it’s difficult to change. 

 

What’s the way out of that undersupplied condition? It’s homebuilding.

 

Well, many believe that homebuilders are in a recession. Some are building less while they wait for affordability to improve. 

 

This is only going to prolong America’s housing supply problem.

 

Let’s LOOK at prices.

 

Since July 2019, which was back before you knew the definition of "pandemic" and the only time that you wore masks were for Halloween, home prices have risen 44.5%.

 

Yes, 44-and-a-half percent in just 3 years.

 

Now, if we shorten that up to year-over-year median house price growth in America, it is still 10.8%. 

 

But the median sale price from June to July eased from about $414,000 to $404,000. 414 to 404.

 

Now, some might say this is hardly a change at all.

 

No, I think it’s meaningful… because all we’ve seen are both YOY and MOM housing price increases for years now.

 

Is it an aberration or is it a trend to come? Of course, no one really knows. But I think it's worth paying attention to.

 

Has the time come? Did real estate prices run up too far, too fast, meaning they must come crashing down to earth in a streaking fireball… that’s going to leave an indelible crater? Puhhh.

 

Let’s explore that. Well, first of all…

 

…the definition of the word "crash" is somewhat UH-morphous. But if it's equated to a bear market, it means a 20% price decline.

 

Well, that's highly unlikely that a decline like this is imminent. Housing values are famously stable. Today's homeowners have oodles of protective equity and their loans are well underwritten. And the supply is staying low.

 

You’re a smart listener, you listen here every week, and you’re probably apprised of all that. 

 

But did you know that even during the astoundingly irresponsible and toxic Global Financial Crisis and Mortgage Meltdown of 2007-2010, that back then during that cataclysmic event, house prices fell less than 20% nationally? 

 

Yeah, they didn’t even crash 20% then!

 

Fifteen years ago - those were the days of "liar loans", 105% LTVs, loose appraisals because appraisers were in cahoots with lenders, and we had glut of national housing supply and a foreclosure crisis… and nearly every housing market malady that you can quickly think of.

 

Housing values didn’t fall 20% amidst THAT apocalyptic environment. 

 

I made sure that chart was put in the show notes for you so that you can see that. That’s the median sale price of houses sold in the United States, sourced by the F.R.E.D. through the US Census and HUD.

 

Today, homes are still being snapped up quickly. That’s what a lack of supply makes happen. And we’ll still have a lack of supply in 2023 and 2024.

 

In fact, last month, the NAR tells us that the median home sold in just 14 days in July. It's never been faster than that on record.

 

That is not something that you would expect amidst stalled PRICE growth. Well, higher mortgage rates will do that.

 

The American housing market reached a turning point this summer. Price increases haven't just slowed—they've stalled.

 

Of course, local factors often supersede national ones. So then…

 

Where are home values least resilient? Areas that were trendy and higher-priced homes.

 

Where are home values most resilient? Lower-priced and entry-level properties. They're the ones least affected by further losses in affordability. That’s what we’ve talked about on this show from Day 1 - investing in entry-level homes for cash flow in the Midwest and South.

 

Who do stalled price increases harm:

  • Sellers. Price matters, remember?
  • New owners that hoped to refinance fast.
  • Flippers.

Who do stalled price increases help:

  • Buyers. 
  • Rent-to-price ratios. If you were wondering when rents will get a chance to catch up to prices? The answer is now.

This recent outsized RENT growth has clearly been a boon to us real estate investors - even a windfall if you’re well leveraged.

Now… in the workplace, the pandemic spawned “The Great Resignation”.

 

People either started working from home or quit and stayed at home. They were on their Peleton bike… and on Zoom. 

 

But tons of companies… from Peleton to Zoom - have seen consumers end their pandemic buying patterns. 

 

Now… so has housing.

 

The pandemic-era frenzy where buyers hotly demanded more space and a Zoom room is what I have called "The Great Reshuffling". It has settled down.

 

At the point of being overly obvious, compared to just a few months ago, this housing market has become worse for sellers and better for buyers.

 

Sellers, you might even have to STAGE properties again.

 

Buyers, let's run a vibe check on how well you’re doing for new purchases. Now you can usually:

  • Not have to pay all-cash
  • You’ll often have less buyer competition
  • Expect time for an property inspection
  • Have an appraisal contingency
  • And avoid an escalation clause on build-to-rents like I’ve discussed with guests here in recent weeks past.

You know, a friend just shared something with me. He said: "We are officially back into the 2018 real estate market. I made an offer today on a brand-new flip. I got $10K of seller help and a half page of contingencies." That’s what he said.

 

Yeah, that really sums up a lot.

 

The market has normalized - not become totally normal by any stretch, but negotiations between buyers and sellers are more balanced now.

 

There’s one group that loves higher mortgage rates - and that’s single-family rental owners. 

 

That crimps affordability - pricing out that first-time homebuyer… making them rent from you. That’s continuing to push up rents at faster increases than historic norms.

 

Fannie Mae expects that home sales will decrease in the next year. That’s nothing new. The volume of existing-home sales has been decreasing for months. 

 

So where does that leave today’s first-time homebuyer, the person - that is becoming more of a rare breed - that DIDN’T have to pay rent to you in your property?

 

Well, the NAR revealed a profile of today’s first-time homebuyer… and I think it’s particularly interesting. Today’s FTHB is…

  • 33 yo - that is the oldest ever - ever. It might not surprise you since affordability is down so it takes a new homebuyer longer to save & form the capital necessary for a down payment, closing costs, and loan qualification. The FTHB is now age 33.
  • Household income is $86,500
  • Median purchase price is $252K… so… significantly less than today’s median priced $400K home.
  • A 7% down payment. That, on average is what the FTHB puts down… so often paying PMI then.
  • 37% of them carry student debt. Typical balance $30,000
  • How about avg sq footage. The average square footage of a FTHB’s home is 1,640.

 

Now, I’ve largely been discussing either total housing supply or single-family housing supply thus far.

 

One bright spot is for apartment-dwellers.

 

420,000 new apartments are forecast to be built in the US this year - that’s according to RentCafe. Coming on top of 2021 - when there was historically high apartment construction, it would mark the first time since 1972 that more than 400k new apartments were completed in each of two straight years. The top spot for new apartments in 2022 is the New York metro area.

 

Elsewhere, out there in the world…

 

Netflix is about to launch a “Shark-Tank” like real estate show called “Buy My House”. It’s structured much like Shark Tank… except homeowners pitch their house sale deal to four “sharks”. 

 

That could be interesting to watch. 

 

Here, coming up at GRE, hear from not just me, but, as usual some of the most influential personalities in the real estate and finance space commonly come along for an episode and run alongside me.

 

Ramit Sethi from “I Will Teach You To Be Rich” is one of those notable names that will join you & I here on an upcoming show.

 

If you have any questions, comments or concerns about the show, you can always reach out at GetRichEducation.com/Contact. That’s how to get ahold of our team.

 

One question that we’re really not in need of hearing over there on our Contact Page, is: “How do I become a guest on the show?”

 

You know, a couple years ago, we had about 20x as many requests to be a feature guest here on the show as there are available appearances. 

 

Well, anymore, it’s about 50X as many requests as weekly shows.

 

We’re sorry to have to apologize to so many wonderfully bright and credentialed people. I really appreciate them. But we only have one, big weekly show… and that supply is not increasing.

 

GRE show supply could be even more inelastic than American housing supply then. 

 

I’d like to welcome our newest show sponsor, MyPropertyStats.com. It was developed by Hayden Crabtree. Hayden has been a show guest here before and we expect to have him back here to tell us more about My Property Stats.

 

It’s a deal analysis tool developed by an active investor - Hayden - to cut the time it takes you to analyze ANY deal by over 90%. -Calculate the EXACT price to pay to hit your cash flow and ROI goals

-Build a WORLD CLASS pro forma

 

In fact, you can go to MyPropertyStats.com/GRE right now and use coupon code GRE to get 10% off your first year. It’s remarkably inexpensive. That’s just $90 A YEAR for a tool that can save 10 hours PER DEAL.

No more spreadsheets. No more juggling multiple files. You can use coupon code "GRE" to get 10% off at MyPropertyStats.com/GRE.

 

Much like the gratefulness I feel for all of the bright guests that are here, we’ve seen quite an influx of advertising inquiries.

 

This is despite that, we haven’t really pitched for advertisers here - much like guests, fortunately, there are plenty of wonderful resources out there that want to reach you, the listener here.

 

These are resources that I don’t just endorse, but I often use myself.

 

If you’d like to make an advertising inquiry here at GRE, you can also reach out at the Contact Page at GetRichEducation.com/Contact

 

I’m Keith Weinhold. I’ll catch you next Monday, Labor Day. You’ve been listening to Get Rich Education.

 

Don’t quit your daydream!

Direct download: GREepisode412_.mp3
Category:general -- posted at: 4:00am EST

You told yourself you’d change the world, then you let the world change you.

Rather than asking yourself, “What do I want out of life?”, a more powerful question is: “What does life want from me?”

Almost everyone wants to be “job optional”. 

People often use their words to denigrate the importance of money, yet their actions validate its importance.

High-flying real estate appreciation rates are mostly over with. The market is normalizing.

Through Q2, national median home price appreciation is 14%. But it's quickly slowing.

American apartment rent-to-income ratio is 23% for tenants.

Zumper tells us there’s about 10.2% national rent appreciation. Highest are TN and NC.

We have available properties in the Midwest and South. Naresh & I spotlight Poinciana, FL; Ocklawaha, FL; and Memphis. 

For available properties and free coaching, contact Naresh at: naresh@getricheducation.com

Resources mentioned:

Show Notes:

www.GetRichEducation.com/411

E-mail Naresh about cash-flowing properties:

naresh@getricheducation.com

Zumper’s Rent Report:

https://www.zumper.com/blog/rental-price-data/

Rent Is The New Gas:

https://www.usatoday.com/story/money/economy/2022/08/09/rents-topping-gas-prices-inflation/10279406002/?gnt-cfr=1

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE 

or e-mail: info@RidgeLendingGroup.com

JWB’s available Florida income property:

www.jwbrealestate.com/gre or (904) 677-6777

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.co

Available Central Florida new-build income properties:

www.b2rdirect.com

Analyze your RE portfolio at: (use code “GRE”):

MyPropertyStats.com 

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode411_b.mp3
Category:general -- posted at: 4:00am EST

Is the economy healthy or unhealthy?

We’ve had two consecutive quarters of GDP contraction. High inflation and supply problems persist. On the other hand, we have a strong jobs market, low unemployment, and high rent increases.

Ultimately, the NBER decides whether or not we’re in a recession.

Today’s guest, Tom Wheelwright of Wealthability, tells us why he thinks we’re in a recession. 

I share with you the exact rent increase numbers I’ve had on my rental single-family homes.

Historically, a recession occurs every five years, on average.

Whether we’re there yet or not, I believe there’s a likelihood of a recession soon.

Tom thinks whether or not a recession is declared is important; it affects consumer sentiment.

He breaks down the new “Inflation Reduction Act”. It does not appear to help reduce inflation. 

Rather, it appears that it will: increase union wages, enact climate change policy, add taxes to pharmaceuticals, hurt small business, and increase IRS enforcement.

“People who have never seen an IRS audit will see IRS audits.” -Tom Wheelwright

Resources mentioned:

Show Notes:

www.GetRichEducation.com/410

Get started on lowering your taxes with Tom Wheelwright:

GetRichEducation.com/Tax

All U.S. Employed Persons: 

https://fred.stlouisfed.org/series/PAYEMS

30-Year Mortgage Rate History (gray bars are recessions):

https://fred.stlouisfed.org/series/MORTGAGE30US

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE 

or e-mail: info@RidgeLendingGroup.com

JWB’s available Florida income property:

www.jwbrealestate.com/gre or (904) 677-6777

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.co

Available Central Florida new-build income properties:

www.b2rdirect.com

Analyze your RE portfolio at: (use code “GRE”):

MyPropertyStats.com 

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode410_.mp3
Category:general -- posted at: 4:00am EST

Is today’s housing market healthy? “Yes” for rental property owners, existing homeowners, and sellers. “No” for renters, wannabe first-time home buyers.

“Unbalanced” is a better word to describe today’s housing market.

I bought my first income property 20 years ago today.

In negotiation, emotions trump facts.

Chris Voss, former FBI hostage negotiator, joins us for real estate negotiation tips. 

If you need a decision from someone, get it in the morning before they have decision fatigue.

In a negotiation, try to get agreement. Don’t try to get the other party to say “yes”.

Chris likes to let the other side talk first.

Let “no” out slowly. A great way to say it is, “How am I supposed to do that?”

Self-deprecating humor can work in negotiation.

Learn how to motivate people to finish projects in a timely fashion for you.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/409

Black Swan Group:

www.blackswanltd.com

Mike Gundy rant “I’m a man. I’m 40.”:

https://youtu.be/zQ3oXkDPKbM

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE 

or e-mail: info@RidgeLendingGroup.com

JWB’s available Florida income property:

www.jwbrealestate.com/gre or (904) 677-6777

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.co

Available Central Florida new-build income properties:

www.b2rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode409_.mp3
Category:general -- posted at: 4:00am EST

We compare the safety of all these investments: cash, savings accounts, treasuries, CDs, gold, cryptocurrency, stocks, mutual funds, ETFs, raw land, a primary residence, and income properties.

Listen to a mainstream media video clip about inflation from NBC Nightly News.

We get a Florida market update from GREmarketplace.com/Orlando.

Overall housing supply is low. It’s even lower for entry-level properties.

For renovated properties, Florida insurance premiums have risen dramatically in the past few years. However, for new-builds, premiums are about 70% lower.

These particular available properties in Palm Bay, FL are typically: 4 BR, 2 BA, 2-car garage, concrete block, single-family rentals, new-build, vinyl flooring, granite counters, and infill quarter-acre lots. $319,000 is what buyers pay. 

Today, these properties appear to appraise for $370,000+. You have $51K+ of built-in equity.

For those that select property at GREmarketplace.com/Orlando, your insurance is paid for the first year. 

Resources mentioned:

New-build Florida income property for $319,000:

GREmarketplace.com/Orlando

Show Notes:

www.GetRichEducation.com/408

NBC Nightly News on Inflation:

https://youtu.be/Lco2EjA-6IA

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE 

or e-mail: info@RidgeLendingGroup.com

JWB’s available Florida income property:

www.jwbrealestate.com/gre or (904) 677-6777

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.co

Available Central Florida new-build income properties:

www.b2rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode408_.mp3
Category:general -- posted at: 4:00am EST

When mortgage rates rise, home builders slow down on building. This constrains supply and supports housing prices.

A record share of Americans say inflation is their No. 1 concern. The CPI is 9.1%.

Property operating expenses are rising with inflation, like insurance and property tax. What helps you pay for it? Rising rent.

Philosophically, why should you raise the rent on your tenants? 

Besides adjusting it to the market amount, you took time learning, you built your credit, you accumulated a 20% down payment, you originated an 80% loan, your operating expenses are rising, you weathered pandemic uncertainty.

If an auto mechanic makes $60 an hour, in ten years, they might make $90 an hour. Where’s the growth in this?

Kathy Fettke from Real Wealth joins us.  

We disagree on the housing market being “healthy”.

I believe a good description of the housing market is: "unbalanced":

Healthy for: rental property owners, existing homeowners, sellers.

Unhealthy for: renters, homebuyers. 

She believes that the Fed has overstimulated the economy, prices are high, and housing is undersupplied.

We discuss real estate’s demographic advantage.

We agree that it’s a bad market for prospective first-time buyers and renters, and good for those that have rental properties.

A housing price crash anytime soon is highly unlikely.

She & I each believe that today, it makes sense to add carefully-bought rental properties to rent to others.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/407

Real Wealth with Kathy Fettke:

https://realwealth.com/

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE 

or e-mail: info@RidgeLendingGroup.com

JWB’s available Florida income property:

www.jwbrealestate.com/gre

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.co

Available Central Florida new-build income properties:

www.b2rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode407_.mp3
Category:general -- posted at: 4:00am EST

National home prices are up 275% since 1991. I break it down state-by-state for you. Slowest? Connecticut with 137%. Fastest? Utah with 599%.

Two misleading RE statistics are: real estate sales volume, home price cuts.

I tell you where I’m spending my summer.

Next, Tom Wheelwright joins us. He authored the new book, “The Win-Win Wealth Strategy”.

He tells us about the 7 investments that the government will pay you to make.

You don’t pay up to 12.3% Social Security Tax on rental income like you do with your day job.

Tax depreciation is explained.

Bonus depreciation is being gradually phased out after this year. 

Resources mentioned:

Show Notes:

www.GetRichEducation.com/406

Tom’s New Book:

“The Win-Win Wealth Strategy”

State-By-State Home Appreciation Since 1991:

https://advisor.visualcapitalist.com/growth-in-u-s-house-prices-by-state/

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE 

or e-mail: info@RidgeLendingGroup.com

JWB’s available Florida income property:

www.jwbrealestate.com/gre

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.co

Available Central Florida new-build income properties:

www.b2rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode406_.mp3
Category:general -- posted at: 4:00am EST

Real estate funds invest in multiple properties. 

Real estate syndications often invest in just one property.

“What is the worst deal that you’ve ever done?” Ask your fund provider that question.

I’m willing to share that I invest my personal real estate fund dollars with Flip & Dani Lynn Robison of Freedom Capital Investments.

Fund pros: More passive than turnkey, stable returns. 

Fund cons: Vet your operator.

Learn more or get started at: GREmarketplace.com/funds

There are short-term funds for liquidity, and longer-term funds for higher returns.

The difference between simple and compound interest weighs in here. 

Learn what a “preferred return” is.

Fund returns of up to 10-12% are offered. Learn where your return comes from.

Fund objectives: safety, certainty, reliability, and growth. 

We’re talking about high-yield, fixed income fund.

Dani Lynn has been a part of more than 600 multifamily deals.

Learn how funds have two audit layers.

There are funds for both accredited and non-accredited investors.

Learn more or get started at: GREmarketplace.com/funds

Resources mentioned:

Show Notes:

www.GetRichEducation.com/405

Get started with real estate funds. It’s the same place I invest:

www.GREmarketplace.com/funds

Dani Lynn Robison’s team contact:

Phone | (937) 551-2282

Email | invest@freedomcapitalinvestments.com

Flip & Dani Lynn Robison’s daily podcast:

Freedom Through Passive Income

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE 

or e-mail: info@RidgeLendingGroup.com

JWB’s available Florida income property:

www.jwbrealestate.com/gre

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.co

By texting “GRE” to 307-213-3475 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Available Central Florida new-build income properties:

www.b2rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode405_.mp3
Category:general -- posted at: 4:00am EST

Your Financial Independence Day happens when your residual income stream amount exceeds your basic monthly expenses.

Rental demand is high for three big reasons: rates are rising, stringent mortgage qualification standards, housing undersupply.  

I answer three listener questions: Should I make a big down payment? Is borrowing at lower than inflation profitable? What about prepayment penalties?

Ridge Lending Group President Caeli Ridge joins us to discuss today’s mortgage lending landscape.

Today, are ARMs beginning to make more sense than fixed-rate mortgages? We explore.

Learn about the cash-out refinance climate. Second mortgages on income properties are still limited.

Does it ever make sense to refinance to a higher mortgage interest rate? We discuss.

Caeli Ridge thinks mortgage rates will keep rising.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/404

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE 

or e-mail: info@RidgeLendingGroup.com

Freddie Mac Includes On-Time Rent Payments Into Underwriting:

https://www.housingwire.com/articles/freddie-mac-to-include-on-time-rent-payments-into-underwriting/

Airbnb Enacts Permanent Party Bans:

https://www.cnbc.com/2022/06/28/airbnb-makes-its-party-ban-permanent.html

JWB’s available Florida income property:

www.jwbrealestate.com/gre

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.co

By texting “GRE” to 307-213-3475 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Make passive income with apartment and other syndications:

www.imaccredited.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Partial transcript:

Welcome to GRE! I’m your host, Keith Weinhold. Happy Financial Independence Day on American Independence Day.

 

I answer some of your most burning listener questions today. 

 

Shifts in the mortgage market could now change your strategy. 

 

Does a cashout refinance to a higher mortgage rate make sense or not? 

 

Is an adjustable rate mortgage actually feasible for you now and lots more… on Get Rich Education.

_____________________

 

Hey, welcome in to GRE. From San Luis Obispo, CA to Saint Louis, Missouri and across 188 nations worldwide, you’re back in that abundant place.

 

And you’ve got to lead with an abundance mentality around here. How many places can you do that when the scarcity mentality is abundant and the abundance mentality is scarce. 

 

I’m Keith Weinhold. This is Get Rich Education. Though it’s American Independence Day… is it your financial independence day. 

 

Are you drawing closer to that day… as you add income streams in your life.

 

With 8.6% government-admitted inflation and stagnant wages and a higher cost of living… has there EVER been a more important time in your entire life to add an income stream through real estate?

 

You can make the case that this is the most important time for you to do that.

 

I am about to answer your listener questions here on July 4th. It’s also Episode 404. There’s no chance that this becomes an error 404. Some dorky humor there.

 

First…

 

Freddie Mac is going to include on-time rent payments into underwriting. Yes! This starts next week. 

 

This is a good thing for you. This incentivizes renters to make on-time payments to you if they ever want to become homeowners.

 

…and…

 

Airbnb enacts a permanent ban on parties. They & VRBO have long struggled with what to do about parties.

 

I just shared those stories with you in Friday’s newsletter. If you didn’t see them, they’re in the Show Notes of today’s episode.

 

Be sure to get our free “Don’t Quit Your Daydream” newsletter.

 

We’ve been really informing you about so much in the real estate world there. We’ve also been telling you about our webinars. I know that some of you enjoyed last week’s Texas properties webinar.

 

Stay up-to-date with our newsletter at: GetRichEducation.com/Letter

 

Now, let me tell you. Back in the year 2004, eighteen years ago. Yes, I was an active REI then. My tenants were increasingly leaving. They were vacating my property and I had to find a new renter.

 

This was increasingly happening for a few reasons:

 

#1 is that mortgage rates were falling then.

 

But secondly, and really the big reason is that anyone could qualify for a loan. Mortgage underwriting standards were so lax that nearly any human could get a loan, even if they had zero income. So… loans were too easy to get.

 

Then the third reason that my tenants seemed to be vacating is that there was ample supply - and an oversupply of properties - first-time homes - for them to move into.

 

Well, today, all THREE of those criteria are flip-flopped.

 

First, mortgage rates are rising.

 

Second, mortgage qualification standards are tough. Tougher than Kevlar.

 

And thirdly, there’s an undersupply of homes, especially these entry-level homes that make the best FTHB places.

 

That’s precisely why rental demand is sky high today, tenants are not fleeing to become homeowners, rental occupancy is close to 100% in many markets, and rents are rising multiples faster than historic norms.

 

These phenomena can move you closer to you financial independence day. 

 

I had a group of financing-themed listener questions come in recently, so I want to get to three of those before we talk more about today’s lending landscape later.

________________

 

The first question comes from Dave in Bellingham, Washington. 

 

“Keith, I thought it was good to make a big down payment on a property. That way, I’d have not only less debt, but I’d have the benefit of having a smaller mortgage payment over time.

 

This means I’d pay less interest over the life of the loan too. Can you tell me more about how FF beats DF?” 

 

That’s from Dave. 

 

Good question, Dave. Common question. In fact, there was a time in my life, before I ever owned any real estate where that same line of thinking made complete sense to me. 

 

I even thought, “If I could be mortgage-free and own a property, I’d have it made.”

 

Dave, let me answer this in a somewhat different way than I’ve answered it before for other listeners’ benefit. 


If you can borrow at a 6 or 7% mortgage interest rate, which, after tax deductions might be an effective 5% interest rate, many think that they can beat that in the market over time.

 

One probably can.

 

The riskiest thing that a lot of people do by making a big down payment is now they don’t have much liquidity. If the cash is already in the home, then that borrower might worry about not having much cash for other disruptions or expenses that come up in life.

 

The worst one could be, “What if you lose your job and your job was, say, 70 to 100% of your income?”

 

Now that cash is trapped in the home as equity… and you can better believe that today, banks aren’t going to let you access your equity if you don’t have a job.

 

The best way to keep equity separated from your home is to make sure it never goes in there.

 

The other reality too, is that the more than you borrow, the more you make use of OPM. 

 

So the great question to ask yourself, Dave, is “How big of a real estate portfolio could I ever build if I limit myself to only using my own money… and NOT other people’s money?”

 

We’re going to discuss this more later in the show today… but that should provide some sufficient context and food for thought to your question, Dave. Thanks for writing in.

 

You, the listener, can always contact us with any questions at GetRichEducation.com/Contact

________________

 

Andrew from New York state had a question through our Contact Page. 

 

Andrew’s been an avid listener for quite a while. I remember your name, Andrew. You’re a veterinarian from New York state. I hope that we can meet sometime in the future. Andrew asks:

 

“Is it a true statement to think that even in today's High "er" interest rate environment   any mortgage rate under the rate of inflation roughly 8% is a bargain??

 

Today ..I am not getting great cash flow...$100/month or break even..on new builds...but still see the upside in RE investing due to its inflationary hedge.” Alright, thanks for that Andrew.

 

With the first question, is any mortgage rate under the 8% inflation rate a bargain. Well, it could be. Many think that the real rate of inflation - the true diminished PP of the dollar is 15%. 

 

But let’s just stick with 8%. Yes, if you get a mortgage at 6 or 7% today, you are effectively being paid to borrow.

 

That is because with the money that you’ve borrowed from the bank, over time, you get to repay the bank with dollars that debase on the bank faster than THEIR interest can accrue on you. 

 

That’s how it can stealthily build wealth.

 

The risk associated with that is - besides being most attentive to your personal cash flows, Andrew - is that at some point over your loan term, there’s a good chance that inflation will duck back below mortgage interest rates.

 

We’re in this inversion now where the opposite is true. So, enjoy it while it lasts. I’d think of your interest rate being lower than inflation as a short-to-medium term tailwind.

 

Your second question was about how today, you’re not getting great cash flow when you buy a new-build rental property. It might be positive $100 or just a break even. But you still like investing in RE for the inflation hedge.

 

First, I think of RE as more of an inflation-profiting center than a mere inflation-hedging vehicle. I take you point though… and then…

 

Yeah, a lower $100 positive cash flow or less on new-builds is lower than what we’ve all been used to in recent years.

 

There’s a chance that this will widen - certainly no guarantee.

 

It like how I described a couple weeks ago that we think of the housing market in two waves. First the housing price increase wave hit hard, then there’s a trough, then later the rent increase wave hits. The trough between waves is when cash flow is lowest.

 

Though you can’t absolutely count on it, rents are increasing torridly. Andrew, I can tell that you’re a close listener just by the words and concepts that you’re thinking over in your questions. I love that. Thanks for you longtime following.

________________

 

The third question comes from JW. This question came from our YouTube Channel so I don’t know where you’re from JW. But you ask:

 

Keith, what are your views on PPPs on commercial loans? 

 

On my current 8-unit property I am pursuing, I am getting financing offers that all have PPPs.

 

OK, thanks for the question JW. I think one reason that I chose your question is because I, myself, have owned an 8-unit apartment building that had a 5-year PPP attached to it.

 

First of all, let me tell you what a PPP is. And it’s funny. I have been at RE meeting in the past and some people that have never heard of them seem incredulous that a PPP even exists.

 

A prepayment penalty is a fee that some lenders charge if you pay off all or part of your mortgage early. If you have a prepayment penalty, you would have agreed to this when you closed on your home.

 

Now, in my experience, you don’t often see these on loans for 1-4 unit properties.

 

I commonly see PPPs on 5+ unit apartment buildings and other commercial loan types.

 

The way that it often works is that your penalty is less severe as each of the five years transpires. It fades.

 

For example, you’d have a higher penalty if you pay it off in 2 years than the lower penalty would be if you pay it off in 4 years.

 

Then with a 5-year PPP, that means that your penalty disappears completely if you pay it off AFTER five years.

 

PPP loans can obviously be a poor choice if you, say, want to add value to a distressed apartment building and do a cash-out refinance in, say two years.

 

So, therefore, for long-term buy-and-hold strategies, 5-year PPPs often fit.

 

I’ve had 5-year PPPs on numerous occasions on my own apartment buildings, and I have never paid any penalty because I have only accepted those penalty conditions when I plan to hold for more than 5 years.

 

Now that you know about cases when you do and don’t want these as part of your loan, maybe you’re wondering why banks have PPPs at all.

 

Lenders charge prepayment penalties to provide a borrower with a disincentive for paying off a loan ahead of time… because that causes lenders to lose out on interest income. Lenders have to commit considerable time to evaluate a borrower and underwrite the loan in the first place.

 

That’s how PPPs work. Thanks for the question, JW.

 

Stay up-to-date with our newsletter. You can sign up free at: GetRichEducation.com/Letter

 

We also make sure that you get the 5-part video course where I’m your instructor. It’s one video on each of the 5 Ways Real Estate Pays.

 

What would it look like if I wrote a short letter about weekly… written by me… sent directly to you… that supplemented this show about real estate and personal finance trends and opportunities.

 

It can help bring you closer to your financial independence day.

 

Get it & my free video course all in one place at GetRichEducation.com/Letter

_________________

 

Yeah, concise, updated intell from Caeli, as always.

 

All these markets are constantly changing:

  • The market for housing prices
  • The market for rents
  • The market for mortgages

 

Working within them can help get you closer to your Financial Independence Day - that day that your real estate income meets or exceeds all of your basic living expenses.

 

Underwriting guidelines are staying tight, just like they have for more than 10 years now. Dodd-Frank and consumers proving that they have the ability to repay a loan has really helped with that. That’s a big reason that the mortgage delinquency rate has fallen to ALL-TIME lows.

 

In fact, that update on second mortgages on rental properties demonstrates that the market still has a pretty limited appetite for that product.

 

You might want it but it still comes with low LTVs if you can get them at all.

 

Some brighter new is that ARMs - Adjustable Rate Mortgages - are making more sense than they used to - when compared to your more typical long-term FRM.

 

There are both risks and rewards to compare there. I like that the good people over there at Ridge help you with decisions like those.

 

So many great & important shows coming up here on GRE - the return of Tax Advisor Tom Wheelwright, a 2-person housing market panel comprised of Kathy Fettke and I… and… oh geez, the return of Chris Voss - the hostage negotiator from Masterclass. 

 

Remember when I mock negotiated him for a fourplex building last year right here on the show & I lost… to perhaps the world’s top negotiator?

 

Well, here we go, Chris Voss is returning here to discuss how to negotiate in a housing market when the odds are against you. 

 

What do you think? Should I mock negotiate him again… I don’t know. That’s awfully entertaining for you but I don’t know how many losses I can take publicly like that. 

 

Big thanks to Caeli Ridge today. It’s where I go for my own income property loans. You can too, I’m happy to share that with you at RidgeLendingGroup.com

 

Until next week, I’m your host, Keith Weinhold. Happy Financial Independence Day! Though you might quit your day job, don’t quit your day dream!

Direct download: GREepisode404_.mp3
Category:general -- posted at: 4:00am EST

“You DO care about what others think of you. That’s your reputation.” -Keith Weinhold

People care about your brand when you create value for them. Next, you must reach people.

A construction worker in London decided that he wasn’t where he was meant to be in life. He’s our guest, Steve D. Sims.

He started asking others why they were wealthy but he wasn’t.

A personal branding expert, Steve tells us why the right brand for you is the “authentic you”.

When you meet someone, ask them about themselves. They are their own favorite subject.

“A brand is what people say about you when you’ve left the room.” -Steve Sims

Brands are either solution-based or aspirational.

Every person has a brand.

Donald Trump was well-branded because he had clear slogans like “Make America Great Again” and “Build A Wall”.

The lesson? Be clear about who you are or what you stand for.

It’s OK to know what you’re “not”. For example, I didn’t know how to hire a COO for GRE and still don’t have experience managing people.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/403

Steve Sims’ website:

https://www.stevedsims.com/

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 877-74-RIDGE

JWB’s available Florida income property:

CashFlowAndGrowth.com

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.co

By texting “GRE” to 307-213-3475 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Make passive income with apartment and other syndications:

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Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Our YouTube Channel:

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Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

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Partial transcript:Welcome to GRE! I’m your host, Keith Weinhold. There’s so much to pack into one show today - inflation at its highest rate in over 40 years, the Fed raising interest rates the most in 28 years, rents are going up fast, then GRE’s COO Aundrea Newbern & I on our favorite REI resources. Today, on Get Rich Education.

 

_______________________

 

Welcome to GRE! I’m your host, Keith Weinhold.

 

When it comes to developing your personal brand to it’s highest potential, what are those traps you might be falling into that have prevented you from doing so. And…

 

There was once a construction worker in London and one day he realized that this just wasn’t where he was meant to be in life. 

 

He contributes to the personal brand discussion today too… on this week’s episode of Get Rich Education.

______________

 

Welcome to GRE! From Franklin, MA to Franklin, TN and across 188 nations worldwide… I’m Keith Weinhold. 

 

With more than 4 million listens, though you’re tuned into one of America’s longest-running and most listened-to real estate shows, today, it’s about how to develop your personal brand which applies most anywhere.

 

There are a few definitions of a brand. A more strict one is that a brand is an intangible marketing or business concept that helps people identify a company, product, or individual.

 

OK, I guess that’s pretty good. Another definition of a brand I’ve heard that I like is: “Your unique promise kept over time.” That’s what a brand is.

 

A big part of keeping promises is doing what you say you’re going to do. Therefore, it’s a commitment.

 

In my mind, a big part of that is keeping your appointments. 

 

If I’m going to collaborate with someone and we have a pre-determined date & time, I put that on my calendar and I would not change that commitment unless some inordinate or unusual circumstance came up.

 

That person trusted me with their time and I trusted them with my time. If someone tells me later that they’d like to re-schedule with me, well, often I don’t do it. 

 

With all the choices I have for spending my time, their wavering commitment doesn’t really reflect so well on their personal brand.

 

Also, other people would have liked to have that time with me & they couldn’t get it because I already committed it to that person that wanted to cancel or postpone.

 

People that have their act together, well-branded people, commit and show up on time.

 

I’ll give you an example of a well-branded person that keeps commitments - whether you like him or not, in my experience, that is, yep, Rich Dad, Poor Dad author Robert Kiyosaki.

 

Robert & I have done a bunch of collaborations in the past, I used to be a writer for the Rich Dad Advisors, he’s been a guest right here with us on the GRE Podcast four times.

 

Not once have we tried to re-schedule or cancel an appointment on each other. 

 

Even if we plan something a month in advance, we keep it. We don’t have to send each other reminders. It was put on our calendar at the time we made the appointment, so what more do you need?

 

And you wonder why that guy is so successful. Well, one reason could be that he keeps commitments. 

 

Now, when it comes to your personal brand - which includes your belief systems, your values, commitment levels, there’s one thing that some people need to “get over” - and I think that Hal Elrod & I touched on this here on the show 3 weeks ago.

 

It’s this myth. There are people that brashly say, “Hey, I don’t care about what other people think of me.” 

 

Oh, that’s wrong. You do too care about what other people think. Because that’s your reputation. 

 

It can be interesting to see the person that says they didn’t care about what other people think, say, have a fake social media account made up impersonating their likeness and embarrassing them.

 

You had better believe that person that said they don’t care about what other people think… frantically tries to point out that, “Hey, I don’t want you thinking that was me over there spamming you.” Someone is impersonating my account. 

 

“Oh, well didn’t you just say that you don’t care about what other people think?” See you did care… and you should. That’s your reputation.

 

What if you own a restaurant & people leave negative reviews about your business & you as a businessperson, you care.

 

DO CARE… about what others think. That’s honesty. But yeah, don’t care too much. 

 

People will care about your brand when they know that you can bring them value. When you start with creating value first, second is how are you going to reach people, and then thirdly, it’s how are you going to create income.

 

It’s value, reach, then income. 1-2-3

 

I’m reaching you right now with this show. In fact, there was a time, between 5 & 10 years ago, that even by having a show like this, one could create value, reach, and income.

 

For new entrants, those days are gone. The podcast landscape became saturated a few years ago and it’s almost impossible to get substantial reach today. 

 

For startups today, a podcast is a lot like a website was 20 years ago.

 

Neither one stands out just by virtue of having one. 

 

You can have a website just like you can have a podcast, but anymore, how would you ever get enough website visitors to make a difference or how would you attract enough podcast listeners to make a difference.

 

Even celebrities that have name brand recognition that have crossed over and started podcasts usually don’t get much traction anymore. They are drowned out in a saturated field.

 

So if you want your brand to reach people today, well, that’s a really long discussion and this isn’t a marketing show. So I’d start with just two pieces of guidance:

 

#1 - Look for that new media source that isn’t crowded today. It might be that “next” media type. For a while, people thought that it might be voice-activated media like Alexa or Siri. I don’t really know that that’s getting traction like some thought. But that’s the way to be thinking. “What’s next?”

 

Secondly, if you know of a thought leader that wants to get their message out with a podcast today, rather than starting their own show and entering a crowded field… gosh, starting your own show, you could spin your wheels with many episodes and unlike a website that doesn’t need to be constantly updated…

 

… a podcast takes regular releases, and production, advertising, sound engineering and marketing, transcription, and a support network of complimentary resources from video to social media and more.

 

Well, I’ve got a great shortcut to that… in the podcasting world that will save you a lot of time, money, and frustration.

 

If you know someone that wants to get their message out through a podcast today, the big shortcut is to be a guest on another show that already has a big following.

 

That way, you’ve outsourced all of the production and marketing and everything else to a proven channel. That can save you hundreds or thousands of hours in your life.

 

Rather than starting a podcast, be a guest on a few big name shows.

 

Now that you know how you’re going to provide value to the world, you’ve got your reach too.

 

Hey, I’ve got more thoughts like this for you on building your personal brand. Before I share those, let’s talk to today’s remarkable guest on how to build your personal brand.

___________

 

Oh, yeah, a really interesting interview with Steve Sims today.

 

One thing we discussed is that you can’t snap your fingers and instantly make yourself someone that you’re not. It’s about gradually being who you are becoming.

 

Now, here at GRE, our show keeps growing and about two years ago, I needed to make a new key hire to run the internal operations here so that I could have enough time clear to make the best content for you every week.

 

But, gosh, I really didn’t know how to make a quality hire here - like, to bring in an experienced pro.

 

Realizing I didn’t even know how to hire someone, I looked around my network of people… and I knew that Ken McElroy had employed a Hiring Manager, Jennifer, to help him and I tapped her so that Jennifer could find a COO for GRE. 

 

Jennifer & I worked on the position advertisement, she interviewed the top candidates, narrowed it down to three, and Aundrea was selected.

 

Then I got Garrett Sutton to help me write the work contract.

 

So, I had acknowledged that hiring a top pro was beyond my skillset.

 

And Aundrea is such a professional here - she has her MBA too - that when GRE added more staff later, she’s the one that does the interviewing - not me.

 

And then… continuing in this vein of, “Don’t pretend to be someone you’re not.”

 

When we make a new hire here at GRE, I don’t pretend like I have some lofty corporate experience at knowing how to run things around here.

 

When I first talk to that new hire here, I simply tell them the truth. I say something like:

 

“I found myself with a show here that a lot of people seem to like to listen to… but don’t have any experience managing people. So I really want you to feel comfortable in speaking up when you think I could be doing something better.” Yeah, I tell everyone something like that.

 

Alright, well, what did that just do when I told them this? 

 

  • First, it’s honesty.
  • It makes me more comfortable
  • It made the new hire more comfortable
  • And finally, I’m not pretending to be someone that I’m not. When I was in the working world, I didn’t climb up the corporate ladder. I didn’t get that corporate experience. Instead, I decided to leave that world behind.

 

Steve made a terrific point at the end about brand clarity - being clear on what your brand stands for - whether that’s your personal brand or your company’s brand.

 

I told you near the start of the show that commitment & respecting other people’s time is a big part of my personal brand. Certainly, attention to detail too.

 

GRE’s brand clarity is in four words: Real Estate Financial Freedom. Those four words tell you where you & I are going together & how you’re getting there too.

 

Once you’re in the GRE world and tribe, then we can get more nuanced, for example, with our strategy and brand of “FF beats DF”. And with that, you see how “RE FF” is achieved faster.

 

I sign off each show with “Don’t Quit Your Daydream” and it’s a trademark that we own here at GRE.

 

So the point is, be clear and memorable in order to have a successful brand for yourself.

 

This doesn’t have to be that well-developed and you don’t have to have terms trademarked to have a strong brand.

 

Juan, my landscaper wacks all the weeds along my fence and doesn’t leave any clippings behind. I can see that his brand was there - imprinted in my backyard.

 

Speaking of some other well-branded real estate figures, if you want to listen to Grant Cardone & I together here on the show, where we 10X your wealth together, he was with us on Episode 264.

 

Robert Kiyosaki’s latest appearance here on GRE was last year. You will find he & I together most recently on Episode 358. 

 

As far as today’s chat, you might be interested in SEEING Steve Sims & I’s chat from today other than just listening to the audio here. It might help reinforce some of these branding concept for you.

 

He’s also just a really interesting figure to see and listen to. You can do that on your YouTube Channel… which is really easy to find and remember… because we’re - I suppose - consistently-branded - ha!

 

That’s because our YouTube Channel is called “Get Rich Education”. I’d expect that video to be published there by about now.

 

Personal branding means that there is… perhaps… a better investment than leveraged income property.

 

That investment… is YOU.

 

Until next week, I’m your host, Keith Weinhold. Don’t Quit Your Daydream!

 

Direct download: GREepisode403_.mp3
Category:general -- posted at: 4:00am EST

For many, it’s become a scary world with $5-$6 gas, soaring food prices, spiking rents, the medical system is still a mess, and wages aren’t keeping up with inflation.

Inflation is at a 40-year high of 8.6%. The Fed raised rates ¾%, the biggest jump in 28 years.

For every $1M in real estate debt that you have, you’re benefiting $86,000 each year due to your debt debasement.

Affordability has become so bad for wannabe first-time home buyers that increasingly, they’re becoming your renter.

Many project rent growth to exceed home price growth this year. Rent.com’s Rent Report shows a 26% annual rent increase nationally.

Every 1% in a mortgage rate increase decreases a buyer’s purchasing power by 12%.

GRE’s COO Aundrea Newbern, MBA joins me. We discuss our favorite RE information sources.

Aundrea expects to diversify her RE portfolio into more markets. She’s been focused on southeast Georgia.

Some RE resources we use: www.city-data.com, US Census Bureau data, CNBC.com, HousingWire.com, FRED data, the MLS, AirDNA.co, GREmarketplace.com.

When considering adding to your RE portfolio, simply talking to a Property Manager can be more valuable than the best website.

Aundrea sees a balanced market at prices $250K+, and a sellers’ market at prices below $250K in southeast Georgia.

Days On Market (DOM), Sale-To-List Price Ratio discussed.

LTRs are in high demand and low supply. STRs are saturated in many markets.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/402

Rent.com’s Rent Report:

https://www.rent.com/research/average-rent-price-report/

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 877-74-RIDGE

JWB’s available Florida income property:

CashFlowAndGrowth.com

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.co

By texting “GRE” to 307-213-3475 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Make passive income with apartment and other syndications:

www.imaccredited.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

 

Partial transcript: Welcome to GRE! I’m your host, Keith Weinhold. There’s so much to pack into one show today - inflation at its highest rate in over 40 years, the Fed raising interest rates the most in 28 years, rents are going up fast, then GRE’s COO Aundrea Newbern & I on our favorite REI resources. Today, on Get Rich Education.

 

_______________________

 

Welcome to GRE! From Auckland, NZ to Oakland, CA and across 188 nations worldwide. This is Get Rich Education. I’m your host, Keith Weinhold.

 

Before I discuss real estate, what’s happening with inflation & interest rates is so exceptional that I want to cover this first.

 

When the latest inflation reading came in at 8.6%, it dashed hopes that it's peaked. We have no evidence that it’s peaked.

 

And as I like to say, that 8.6% is just the level that the government is willing to admit to. It's really higher.

 

It's the third month in a row that it has exceeded 8%.

 

Treasury Secretary Janet "Grandma" Yellen has already warned of what she calls "unacceptable levels of inflation".

 

And Yellen looks like my late Grandma Weinhold. Yeah, they look a lot alike. One difference though, is that Grandma was not wrong about inflation. 

 

Another difference between my grandmother and Yellen is that… Janet Yellen never gave me Star Wars action figures on Christmas like my Grandma did.

 

Well, for many people, especially in the lower middle class, it's become a scary world with devastating $5-6 gas, soaring food prices and spiking rents. (I’ll get to that shortly). The medical system is still a mess. Wages are up perhaps only 5%.

 

Their quality of life is really suffering now.

 

Libertarians point out that fiat inflation is theft of one's private property. You earned a dollar. Now your prosperity has been stolen.

 

Sneaky shrinkflation is stealing from you too. Yeah, you're not imagining it, 

 

Gatorade has trimmed its 32 ounce bottles down to 28 ounces. A small box of Kleenex has shrunk from 65 tissues down to 60. 

 

Package sizes are shrinking faster than Lake Mead, all while producers charge the same price or more. That’s what shrinkflation means.

 

It's become an awful economic malady for consumers.

 

So, let’s talk about higher interest rates since that’s what can keep inflation from soaring.

 

Many interest rate types are based off of the Federal Funds Rate.

 

Now, I like to look at history to see what typically happens in like scenarios. History doesn’t tell you everything, but many people don’t look at it.

 

Rewinding three years, this rate was hiked up to 2.5% by early 2019… and the stock market was freaking out by then. Trump even demanded a rate cut. He got it and that, turned stocks around.

 

Yes, Presidents are supposed to stay independent of the Fed, but, in any case…

 

Just last week, the Fed Funds Rate was raised up to 1.75%... and the stock and crypto markets have already taken a swan dive off the high board.

 

Everyone thinks that rates are going to be raised again at the next Fed meeting next month.

 

So how do you think that equity markets are going to like that? History shows us that they don’t.

 

But see, history shows us that even when the Fed Funds Rate is raised to 10%, it can take years to quell inflation.

 

Commodities like housing, food, and energy, often excel in either inflationary times or recessionary times.

 

That’s where you want to be. Buy & own what people need, not what they want.

 

These things have a finite supply. Bringing them into existence takes "proof of work". 

 

Proof of work means that it takes real world resources to extract or produce something—like framing roof trusses, growing timber for lumber, mining gold, extracting oil, or growing wheat. 

 

If you held any of these commodities individually, you might merely hedge inflation.

 

But if you can control an entire commodity by only putting one-quarter or one-fifth of your "skin in the same", then you get to short the dollar too.

 

"Shorting" means that you're betting that something is going to fall in value—the dollar in this case.

 

Now you're creating leverage and arbitrage. You're really profiteering from inflation ehre.

 

Real estate is like a basket of commodities. It is made of: lumber and copper and glass and all kinds of commodities.

 

So, if you have $1M in real estate debt, it's now being debased at a rate of 8.6%. Great.

 

This effect alone has increased your prosperity by $86,000 this year—$86,000 this year alone, and that’s besides appreciation, income, tax benefits, and amortization.

 

Yeah, you’ve got an $86K tailwind.

 

Do you remember back in 2019 when I did the podcast episode called The Debt Decamillionaire? It was Episode 260. You might remember that episode.

 

That's when I touted the counterintuitive merits of taking out $10M in real estate debt... with the payments outsourced to tenants.

 

Now, I know that not everyone has the wherewithal to do that. But if you were able to implement that plan, it has now created an extra $860,000 of annual wealth for you.

 

Yes, as one of just five ways you’re paid.

 

If you think that sounds scary - or unconventional - it’s definitely unconventional. Because being conventional gets one nowhere.

 

So, though you might have not been able to amass that much good debt, I was ahead of the inflation, helping you get out in front of it to take advantage of it. Of course, I talked about it well before 2019 too.

 

And, no, I sure didn’t know that a pandemic was coming in 2020 and it was going to bring all this inflation this quickly… but that is how things worked out.

 

Now, if you’re uninitiated on this, if you originate $10M in loans, understand something. Your net worth didn’t just decrease by $10M on the day that you got the loan. 

 

The day that you originate the loan, what happens is that you’ve now got $10M in your asset column and $10M in your debt column.

 

Leverage amplifies the $10M in your asset column… and then your debt column erodes through both tenant-made principal paydown - and this higher inflation.

 

Maybe I’m stretching your thinking just merely by discussing 8-figure debt like that.

 

So why is someone really compelled to be a real estate investor today?

 

One big reason is that soaring inflation is going to be around for a while.

 

So last Wednesday, when the Fed raised interest rates three-quarters of 1% - their highest daily increase since 1994.

 

Understand that higher interest rates decrease demand. There's another name for substantially decreased demand. That is called a recession. I don’t know if we’ll get that far.

 

Now, capitalism is not inherently inflationary.

 

Sure, as employers' demand for labor rises, that's inflationary.

 

But as businesses compete to offer goods and services at the lowest price - which is capitalism - that's deflationary.

 

Libertarians are quick to point out that America has too much government intervention to be considered a truly capitalist economy anymore. That’s a different conversation.

 

But some have speculated that politicians are plotting another stimulus check drop on American citizens so that they can deal with inflation.

 

I really hope that they do not do that. Sheesh, this would be a policy blunder. This would be like shooting a man that's already dead.

 

This absurd approach of "printing up currency" would be to help people deal with the consequences of... "printing up currency".

 

If you think that’s preposterous, well…

 

Quebec is actually doing this. They're issuing $500 stimulus checks to help the Canadian province's residents deal with inflation.

 

Yeah, that’s really happening. 

 

Soaring gas prices aren’t just painful for summer road-trippers. Because fuel is a critical input for so many goods and services, higher costs are causing havoc across the economy in a lot of places that you wouldn’t expect it…

Aviation: Airfares in the US skyrocketed 19% in April from a month earlier, an increase that is almost exclusively driven by a jump in jet fuel prices, United CEO Scott Kirby said. Now, you might have expected that one. But get this…

Law enforcement: A sheriff’s department in Michigan instructed its deputies to cut back on visits for non-urgent calls because it had blasted through its fuel budget with months remaining until a new one kicks in. (Yeah, inflation affecting law enforcement!)

Emergency services: An ambulance crew in Pittsburgh said it was limiting its service outside of 911 calls after facing a similar budget crunch. Its fuel expense for the full year is typically $50,000, and it’s already got close to that entering June.

Landscaping: Lawnmowers and trimmers use gas to make your front yard the envy of the neighborhood. But after absorbing all of the cost increases they can, some landscapers have slapped a surcharge on customers, and others are even looking into electric mowers and propane as an alternative fuel.

In any case, a look at history tells us that we could be in for high inflation for a full decade.

 

So make financial decisions accordingly.

 

Risk assets are typically really sensitive to big moves in inflation and interest rates.

 

Major stock indices are down, down, down.

 

And cryptocurrencies are in an all-out historic meltdown. They’re more volatile than stocks, and many have lost 50%-60%+ of their value just this year. 

Crypto trading platforms have halted withdrawals

Companies cut jobs

Panicked investors dumped their holdings

The public is finally dismissing promoters' claims of "Hey, I made $50k on doodoo coin. So you can you!". You don’t really hear that lately.

 

Let's Go Brandon Coin, now worth $0.00. And “Let’s Go Brandon” coin makes Dogecoin look like some sort of respectable family heirloom.

 

I actually still think bitcoin could have some potential, but…

 

So then where to look? Where do you go for yield today?

 

Some feel that the "true rate of inflation" is 15% today. Then that's how much prosperity you lose by storing cash.

 

(I believe it's wise to hold at least 3-5% of your real estate portfolio's value in cash.)

 

One place could be oil if you think there’s still a runup to be had there. But oil has performed well so far this year. Gold still hasn’t really awakened despite inflation.

 

What you can do… is…

 

Follow the money. Big institutional buyers like American Homes 4 Rent keep plowing money into real estate, especially single-family rental homes.

 

That’s historically the place to be in times of either high inflation or a recession.

 

Though the institutional share is increasing, the overwhelming majority of homes are still bought by individuals just like you.

 

In the fourth quarter of 2021, institutional buyers only comprised 18% of home purchases. 

 

As affordability clamps down on wannabe first-time homebuyers, unfortunately, many of these fine people never make it to the closing table.

 

Every 1% in a mortgage rate increase decreases a buyer’s PP by 12%.

 

Mortgage interest rates are now 6%+ on OOs, about 7% on rentals. I believe that the only way houses are going to get more affordable anytime soon is if mortgage rates come down. That’s because home prices aren’t coming down anytime soon.

 

So what do these priced-out people do? Increasingly, they become your renter. 

 

Rent price growth is predicted to outpace home price growth this year.

 

Though some measures are lower, Rent.com's Rent Report shows an astounding 26% annual national rent increase.

 

While a lot of major markets are struggling with a streak of Fed rate hikes that could drag on longer than the final two minutes of an NBA game...

 

...for real estate investors, the rent just keeps flowing in. 

 

And here’s what it comes down to. Picture this. Like I’ve discussed before, first home prices rise, and then rents follow later.

 

Picture two waves. Say that these two waves are 18 months apart. The first wave is home prices. Today, prices are still climbing but the wave has likely crested.

 

That second wave that’s coming in now are the torrid rent price increases.

 

The trough between the two waves is where the cash flow is worst on new purchases.

 

And now the second wave - that rent increase wave - is building. 

 

That’s the ah… seafaring here in the rental housing market ocean if you will. 

 

Hey, In the past, I’ve discussed where I’ve invested and what RE types I like to own. Why don’t we hear from GRE’s own COO Aundrea Newbern, MBA about how she’s positioning her portfolio in this environment of normalizing prices & spiking rents. 

Also, she & I will discuss some of our favorite resources & websites for real estate info. That’s straight ahead. I’m Keith Weinhold. You’re listening to Episode 402 of Get Rich Education!

__________________

Yeah, great stuff from Aundrea, as always. 

We discussed markets. Of course, it’s about the submarket too. As an example, maybe you don’t feel like Erie, PA or Toledo, OH or Grand Rapids, MI are fast-growing markets. 

Actually, I think Grand Rapids, for one, is growing, but the point is, that even if a metro has a stable population but it’s, say, medical district is booming - like a lot of cities’ medical districts are… you may very well be better off in an OK metro with a booming medical SUBmarket than you are elsewhere.

It’s often about that SUBmarket within a metro that really matters to you.

There aren’t too many places that you can invest & get yield today. But high inflation is the motivator to do so. 

Create one login, one time, it’s free & get access to all of our provider at GREmarketplace.com

For everyone here… COO Aundrea Newbern, MBA, Content Manager Matthew Blunt, Producer - me &, Sound Engineer, Investment Coach Naresh Vissa, Website Marvin Diaz Jr, Advertising Jake Madoff, I’m your host Keith Weinhold. 

Don’t Quit Your Daydream!

 

 

Direct download: GREepisode402_.mp3
Category:general -- posted at: 4:00am EST

The housing market has calmed, but it’s still strong.

The homeownership rate of 65% is poised to fall these next few years. People must live somewhere. This should make for more renters.

Mortgage delinquencies have fallen for seven straight quarters. The forbearance program kept people in their homes.

“The Great Reshuffling” describes the US housing market since 2020.

Inflation flips money upside-down. Focus on prudent borrowing, not saving.

International Man Doug Casey joins us. He calls for a “Greater Depression” ahead.

For consumers, the costs of energy, food, and housing have become crippling. 

Doug thinks that the decline of world economies will continue. World cities have more people living on the streets. 

He thinks that the Fed can’t hike rates very high. It will result in too many debt defaults. Then how will inflation be curbed?

Doug thinks you should save, but don’t save in dollars.

Are price controls coming? That’s when the government tells companies that there’s a ceiling on the price they can charge for their goods and services.

We discuss what you can do to prevent being wiped out in a crisis.

I discuss living well vs. austerity.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/401

More on Doug Casey:

https://internationalman.com/

Current US debt level is over $30T:

www.usdebtclock.org

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 877-74-RIDGE

JWB’s available Florida income property:

CashFlowAndGrowth.com

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.co

By texting “GRE” to 307-213-3475 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Make passive income with apartment and other syndications:

www.imaccredited.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

 

Partial transcript:

 

Welcome to GRE! I’m your host, Keith Weinhold. While much of America & the world keeps getting crushed by inflation, you’re profiting from it.

 

I provide you with a housing market update… then, as higher inflation reduces the quality of life for so many WORLD residents, today’s guest gives both us a global and national perspective on the prospects for a DEpression, today on Get Rich Education.  

__________________

 

Welcome to GRE! From NYC’s Brooklyn Bridge to Bainbridge Island, WA and across 188 nations worldwide, I’m Keith Weinhold. This is GRE!

 

And it’s Episode 401. Now, no, it’s definitely not episode 401(k). No life deferral plans here! Uh, oh excuse me… they’e called… uh, tax deferral plans. Though life-deferral plans would be a more apropos moniker.

 

I’m grateful that you’re here for another wealth-building week.

 

Now… asking an angry spouse to calm down is not exactly a tactic that's... effective.

 

By now, Jerome Powell has been effective at raising interest rates to help America's housing market calm down.

 

Though mortgage rates have inched lower in recent weeks, they're still 2% higher now than they were a year ago today.

 

In fact, the rate rise from early March to early May was the swiftest that I've seen in my entire life.

 

Rates scaled a wall. Clearly, this impacts affordability

 

The rate of property sales is a little lower now… off its peak.

 

It's getting more Darwinian out there. The NAR estimates that 15% of wannabe first-time homebuyers will be priced out of the market this year. 

 

People have to live somewhere. If they can't own, they'll have to rent... or keep living in their parents' basement… that’s an option for some people too.

 

Right now, the homeownership rate is 65%... and that is pretty close to the average of the past few American generations.

 

I’ll tell you… that 65% homeownership rate is poised to fall faster than dogecoin. 

 

Well, what this likely falling home ownership rate means is that the renter pool should swell, putting more upward pressure on rents.

 

That’s what happens. If home ownership goes from 65% to 60%, then America’s renter proportion basically goes from 35% up to 40%.

 

You know how I've talked about how home prices rise first, then rent increases lag behind? Well, this is it. This is the place and time where rents catch up.

 

With housing prices, are we set up for a recipe of "housing crash" or is it more like "housing calm"?

 

Looking at purchase applications, demand is probably past its peak. But housing demand still drastically exceeds supply

 

Normal housing supply is about 1.5 million units. We've come up from a jaw-dropping paucity of 376,000 homes back in February. And it's still just 516,000 now (chart).

 

We're only up a tad from famine-like levels.

 

America still needs about 300% more inventory just to bring the market back into supply-demand balance.

 

Housing supply is inelastic; it cannot be increased quickly. It'll take several years to reach balance.

 

How else can we measure this balance? One way is with days on market (DOM).

 

Pre-pandemic it was 45 days. Now, despite higher interest rates, it's under 30 days & under 20 days in a lot of markets.

 

Mortgage delinquencies have fallen for seven straight quarters. The forbearance program worked. One can critique its morality. But it kept people from losing their homes.

 

As the market entropy - with wild bidding wars & a “free for all”, couldn't last forever - nor was it good that that condition persist - it's still a strong housing market. 

 

Expect a gradual return to a calmer, more normalized condition. Yes, “calmer” market conditions are poised to emerge here.

 

Hey, pretty soon, you might not have to offer more than the list price for a property.

 

Expect less competition from all-cash buyers. Sheesh, “all-cash buyers”. What are those zero-leverage psychos doing anyway?

 

Hey, property inspections are coming back. Imagine that you can ask a seller to fix some things for you and not fear that they'll reject your offer.

 

So what is the bottom line with today’s housing market?

 

Rents should keep rising faster than historic norms.

 

Supply is so low that housing price crash prospects are near zero, probably even through 2023.

 

20%+ annual price increases still exist in many markets. Nationally, this is calming now.

 

By the end of the year, home price appreciation should still be higher than the historic norm of 5%.

 

And you know…

 

Back on December 1st of last year, I published GRE's 2022 National Median Housing Price Forecast and I also announced it on this show at that time that I expected a 9% to 10% rate of home price appreciation this year.

 

We’re nearly at mid-year here, and I still like how that forecast looks.

 

In America, you’ve heard of the Great Resignation or the Great Migration but I think that the term that best encapsulates what’s gone on in American housing since the start of this decade is “The Great Reshuffling”.

 

Working from home was a significant driver of this "Great Reshuffling" and accounted for more than half of the steep increases in home prices seen during the pandemic. That’s what new research has found by the Nat’l Bureau Of Economic Research.

 

By now, you’ve got more Americans that are shuffled into place. That found that long-term home with the realities of their new life.

 

That’s the bottom line. There is a Great Reshuffling, and now people are settling into place so we’re kind of seeing this welcome “calming” of the housing market as we move toward eventually settling into more normal conditions.

 

Well, hey. Thank you for the “Instant Reaction” from so many of you after last week’s milestone Episode 400 where Hal Elrod & I discuss how to improve relationships and be a person of value.

 

Greg from the United States remarked: “Two of my favorite people were together in one episode. I’ve been following Keith since the beginning of his podcast and journey… and I love “The Miracle Morning” and practice it habitually.

 

Roxana from Romania said, This was just phenomenal! A terrific talk that I listened to three times already. Thank you for all the good that you do through GRE! Congratulations for 400 episodes.”

 

I appreciate the remarks there, thanks.

 

You know, I want to hear from you, the listener. 

 

If you’ve been following along here and you’ve acted by putting income property into your portfolio and you’re now the beneficiary of inflation & you’re profiting from this inflation… with the Inflation Triple Crown… from time-to-time, we like to have a listener on the show.

 

If that interests you, reach out to us through: GetRichEducation.com/Contact

 

There’s no guarantee that we can get you on the show here. We have 50x as many requests to appear on the show as available slots.

 

But if you’ve had your life impacted, we want to hear from you. You don’t need to be a big name. 

 

In fact, if you’re just sort of salary or wage-earning person that’s had their life impacted by taking GRE principles and putting them into action, I want to hear from you.

 

Again, get started there at: GetRichEducation.com/Contact

 

Inflation flips money upside-down.

 

Though inflation isn’t a new story, most experts believe that inflation is going to stay elevated for a longer period of time here.

 

I think that some people - everyday people - let themselves be coerced by inflation. So they cut back on grocery spending & complain about car gasoline prices & lament that their 401(k) is plummeting & live small and maybe even live miserable.

 

Then there’s this increasingly popular narrative that seems to enforce that - you’ll do with less & you’ll be happy about it. 

 

And you hear more about buzzy terms, like, well “Reducing your standard of living is what “sustainable” looks like. Don’t you want to live sustainably?”

 

And people will try to conserve gasoline consumption by biking in the rain and having a muddy streak up their back.

 

Now, all things equal. I think that doing this for the environment can be good. That’s fine.

 

Rather than sustainability, some try to mask the quality of life degradation (from inflation)... justifying it with… well, I’m practicing “minimalism”. 

 

Minimalism. Yeah, I don’t need to go on vacations. Translation = I’m too fearful of my financial security to even get out and see the very world that I live in.

 

Whoever said that less is more never had more… and why have more when you can “have it all”? I kid a little bit here…

 

But… if you keep your quality of life because you invested in real assets with good debt… then go ahead and recycle some more consumable items in your household if you want to help the environment.

 

You don’t get to recycle your life. You’ve only got one of those… at least here on this earth.

 

Today’s guest believes that the prospect of a Greater Depression lies ahead. Let’s explore this together, today.

_________________

 

Yeah, it’s good to get the bigger-picture perspective sometimes.

 

Doug feels that future RE price increases could be in question. Well, even if appreciation completely stopped in the future, today you can still lock in low mortgage interest rates & rent that property to others… with persistently high inflation debasing your debt all along.

 

I brought up price controls in our chat today, which is when the government steps in & says something like, no, gas station, you absolutely cannot charge more than $6 per gallon for gasoline, or no, leaf lettuce grower, you cannot charge more than $4 for a one pound bunch of leaf lettuce. 

 

That ceiling - that price control - has often led to disastrous consequences for economies.

 

Prices often got high in the first place because there’s a relative scarcity of those goods.

 

Then if you put a price control on, say, leaf lettuce, then producers are less incentivized to produce. They won’t produce at a loss. 

 

When producers stop producing, then there’s even less reason for anyone to produce the item, making it more scarce, making your consumer choices more narrow & making your life worse.

 

Price controls can turn out to be a form of austerity. 

 

Then there’s more direct austerity - which is analogous to saying that you cannot run your air conditioner below 80 degrees in order to conserve electricity. 

 

Well, that DIRECT austerity measure also reduces your quality of life… and it’s politically unpopular. A President doesn’t want to institute a direct austerity measure like electricity conservation.

 

So a price control has more political expediency than austerity but it can have the same drastic result - reducing your consumer choice and quality of life.

 

If you picked up on what Doug was saying, he said that you can save. But don’t save in dollars. Saving in dollars guarantees a diminishment of your purchasing power.

 

My take is that saving in dollars guarantees a loss in you & your family’s standard of living. So the best way to avoid a “Greater Depression” at home, is to be vigilant that…

 

Inflation flips money upside-down. Get out of dollars. Get into real assets & debt. 

 

We’ve built a resource here to help you do exactly that. Get out of dollars, get into real assets & good debt at GREmarketplace.com

 

You’ve got the best markets & proven providers of income property. Create one login one time and connect with providers right there at GREmarketplace.com

 

Until next week, I’m your host, Keith Weinhold. DQYD!



Direct download: GREepisode401_.mp3
Category:general -- posted at: 4:00am EST

You often relate to other people when you show yourself as vulnerable and fallible. In many contexts, this is even better than acting professionally.

Today’s guest, “Miracle Morning” author Hal Elrod, tells us that people spend too much effort trying to impress others.

When you give the most, it’s liberating.

“You SHOULD care about what others think of you. That’s your reputation.” -Keith Weinhold

Once, Hal e-mailed friends, ex-girlfriends and colleagues to seek criticism about himself. That feedback hurt.

Everyone wants change, but no one wants to change.

Generosity, selflessness, and contribution foster meaningful relationships.

I share that viewers were recently critical of my YouTube video. Hal admits that he believes that he’s not a great listener.

Hal strives to add value to every single person that he meets.

Aundrea Newbern, GRE Operations Lead, joins us for milestone Episode 400. 

Resources mentioned:

Show Notes:

www.GetRichEducation.com/400

Hal Elrod’s books and movie:

www.MiracleMorning.com

Hal’s friend John Ruhlin’s book “Giftology”:

https://www.amazon.com/Giftology-Increase-Referrals-Strengthen-Retention/dp/1732095604

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 877-74-RIDGE

JWB’s available Florida income property:

CashFlowAndGrowth.com

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.co

By texting “GRE” to 307-213-3475 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Make passive income with apartment and other syndications:

www.imaccredited.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

 

Partial transcript:

Welcome to GRE! I’m your host, Keith Weinhold. Being a person of value and building lasting relationships often comes down to self disinterest, empathy, and connection. You’re going to build not just your wealth mindset, but your skillset.

 

It’s milestone Episode 400, today, on Get Rich Education!

 

Welcome to GRE! From Cherry Hill, NJ to Cherry Springs Dark Skies Park, PA and across 188 nations worldwide, you’re listening to one of America’s longest-running and most-listened to shows on real estate investing. 

 

That’s our major so to speak… with minors in economics and wealth mindset. I’m your host, Keith Weinhold. You probably know that after 400 episodes. 

 

Today’s guest doesn’t often do podcast conversations like this. But GRE’s Operations Lead, Aundrea introduced me to “Miracle Morning” author Hal Elrod last year. 

 

So Hal is standing by, and then, a bonus, as Aundrea joins me near the end of the show today as well.

 

Yeah, so here on milestone Episode 400, there aren’t any balloons falling out of the sky or anything. It’s an opportunity to expand your thoughts & mindset & skillset in a different direction that should benefit you both within real estate investing & your broader life outside of it - from relationships with your real estate agent to your spouse.

 

In human relations, more than ever, people relate more to you as a vulnerable and even fallible person than they do as one that acts strictly like a professional in a lot of circumstances.

 

The best way to show others in a business relationship (that you don’t know very well) that you’re a real human being & that loosens up both of you & make you laugh is when you go out of your way to point out that when you left home this morning… you’ve got mismatched socks on… and you make some joke about it… something innocuous yet relatable like that.

 

Then there’s handling ego and criticism in a way that makes you endearing and empathetic. 

 

And by the way, the definition of empathy is “the ability to understand and share the feelings of another person.”

 

Now, we get overwhelmingly positive feedback and comments about the show here… and I am grateful to you for that, whether it’s through Apple Podcasts reviews, or where you can always reach out if you’ve got a question or concern or suggestion at GetRichEducation.com/Contact… or increasingly, we get more & more comments from you on our Get Rich Education YouTube Channel.

 

There is a rather robust comments section there…

 

… and there’s one popular video that we have over there. It has more than 100,000 views and a lot of “Likes” and “Comments”. And I was rather criticized for how I handled this video - it was an interview. 

 

Now, it was the type of video that crossed over, it didn’t bring in our usual real estate investor crowd. It was kind of a hybrid crowd of geography & real estate.

 

And, again, we get overwhelmingly positive feedback here. But the nice remarks aren’t where you get the lessons, so… I got dozens of critical comments on this video… and these commenters were clearly critical of the way that I handled the interview. It wasn’t the guest.

 

Comments were rather disparate. Some said that I brought no value to that interview - I was the host with a fairly prominent guest. Others said that I talked too much, some said I talked too little, it just seemed like I couldn’t do anything right with that crowd.

 

Now, one way that I could have handled it is set a policy here that any negative comments have to be deleted. We could have just deleted them all.

 

Well, I don’t want to do that. You can disagree. In fact, some say that a disagreement is actually the start of a great conversation.

 

We could go in there & reply and tell the commenter that they’re being dumb or say something else disparaging.

 

Here’s how I handled it once I learned about this. I went into the YouTube comments myself, read a bunch of the criticism, and made individual responses to a bunch of them. My response was something like:

 

Hey, thanks for the feedback. Others seem to take exception to this material too. It is probably in my best interest to read all of these comments, see what I can learn from this, and I’ve got to do better next time. I have clearly disappointed a lot of people.

 

That was my response. Something like that.

 

Well, what did that do… it appeared to engender… empathy, really. Some of the detracting commenters then came back to me & said, “Aw, you know, that wasn’t so bad. I don’t think there’s much that you need to change. I still learned a lot from your video.”

 

See, when I showed the world that I’m listening and that I’m a fallible human being, just like we all are, sometimes it makes the critic come back and sort of repent or even reconsider.  

 

Next week, here on the show, “International Man” Doug Casey & I are going to discuss economics and what he thinks the prospects of entering what he calls “The Greater Depression” are.

 

Today, Hal Elrod & I on how you can be a person of value and build meaningful relationships…

Direct download: GREepisode400_.mp3
Category:general -- posted at: 4:00am EST

Have you ever met anyone that created wealth with stocks? I haven’t. Why not? 

Inflation, emotion, taxes, fees and volatility are the reasons. I break this down.

The Rule of 72 is what traditional advisers cite as a wealth-builder. I describe why this does not work.

Learn why returns from stock and mutual funds are often less than zero.

What really creates wealth? Leverage.

Learn trade-offs between long-term rentals and short-term rentals.

Zach Lemaster joins us. A licensed optometrist and captain for the US Air Force, he’s become financially-free through real estate. 

We discuss the pros and cons of owning “Build-To-Rent” new construction income properties. It takes patience during the build process.

Find Build-To-Rent income properties by e-mailing GRE’s Investment Coach:

naresh@getricheducation.com

Resources mentioned:

Show Notes:

www.GetRichEducation.com/399

Get income properties by e-mailing GRE’s Investment Coach:

naresh@getricheducation.com

When I interviewed the 401(k) inventor:

https://www.getricheducation.com/episode/197-inventor-of-401k-ted-benna-joins-us/

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 877-74-RIDGE

JWB’s available Florida income property:

CashFlowAndGrowth.com

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.co

By texting “GRE” to 307-213-3475 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Make passive income with apartment and other syndications:

www.imaccredited.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Partial transcript:

 

Welcome to GRE! Why Don’t Stocks Create Wealth? After answering that, learn about some tradeoffs between LTRs and STRs, and the pros & cons of getting a construction loan and new-build rental properties. Today, on Get Rich Education.

____________________

 

Welcome to GRE! From Hialeah, FL to Haleakala, HI and across 188 nations worldwide - that’s almost all of them - I’m Keith Weinhold. This is Get Rich Education.

 

I find it interesting that there are still smart people out there who think that stocks create wealth.

 

Everyday people could create wealth just by investing in stocks or mutual funds or ETFs?

 

I’ll tell ya. I have never met anyone in my entire life that has become wealthy from investing in these vehicles.

 

Now, that’s something that shouldn’t offend stock adherents. That has been my personal experience. 

 

Just asking around here at GRE a bit, I found that our Content Manager, Matthew… he said that he once knew just one person that did get wealthy with stocks… and that is because that person’s company IPO’ed.

 

OK, well that’s worth knowing. But as for everyday investors, what one might call a retail investor that buys and owns Apple stock or Amazon stock or bought the S&P 500 Index fund from a big mutual fund company… I mean… do you know anyone that ever created wealth from stocks? Or do you even know anyone that ever knew someone that created wealth with stocks.

 

I'm talking about creating wealth. For example, someone that started at a level of either "just getting by" or starting at a level of "middle class" and then transitioned to "wealthy", simply through shrewd and savvy stock investing.

 

I think a lot of people invest in stocks just because that’s what the herd does.

 

But they never ask themselves at all… "Have I actually met anyone that's ever created wealth from stocks?"

 

And if you run with the herd, you don’t get ahead.

 

So why is this? How come virtually no one gets wealthy with stocks?

 

Well, look. We all learn and understand the world through different lenses. I'm about to share the thought paradigm that shifted my own personal journey… and why I have not personally - or through an LLC - or in any way, owned any stock, or mutual fund, or ETF since the year 2014.

 

Right now, major stock indices are flirting with bear market territory. This means a value loss of 20% from a recent peak. 

 

Recently, the Dow Jones posted its eighth straight weekly loss. That's its longest weekly losing streak since 1923.

 

Could we say that misery loves companies? Big Tech has shrunk to Medium Tech. Even staid reliables like Apple, Target, and Walmart are tanking.  

 

Other than a one-month virus "flash crash" in March of 2020, many Millennials and Gen Zers have zero experience with a sustained bear market.  

 

None have occurred for thirteen years, which is an unusually long time frame.

 

Perhaps these investors will "sell low"; maybe they'll stay the course.

 

Now, investing in the stock market is so common - and so herdlike - that if you’re talking in a general conversation and say: “the market” - people just assume that you mean the stock market.

 

Well, shouldn’t “the market” be creating wealth for people. 

 

After all, the S&P 500 has averaged a 10% annual return over time. In order to emphasize compounded returns, something that traditional, old school advisers often cite is "The Rule of 72".

 

You've probably heard of it.

 

What you do is take the number 72, divide it by your annual percent return (10), and that's how many years it takes your money to double. 

 

Therefore, an S&P 500 investor should double their money every 7.2 years. Well, that sounds pretty good to most people..

 

Then over the decades, several doublings should ensure a fantastic retirement and perhaps even a taste of wealth.

 

But why doesn't it?

 

Why doesn’t it provide a fantastic retirement most times?

And why doesn’t it put people on that wealthy echelon… ever? 

 

This is due to five chief drags—inflation, emotion, taxes, fees, and volatility. I’ve glossed over that before. But lets see how this all negates what so many investors think is some kind of good return.  

 

Let's subtract each one from this 10% unadjusted stock return.

 

Inflation

Many experts agree that the CPI, currently 8%+, understates the true rate of inflation. It could be 15% now.

 

But let’s just say that long-term, true inflation averages 5%.

 

Yes, you could make the case that it’s more. But let’s just use 5% inflation. Well then...

 

…your long-term 10% stock return minus 5% inflation = 5% inflation-adjusted return.

 

Emotion

Everyone knows you're supposed to "buy low" and "sell high". But many do the opposite.

 

Why?

 

One has difficulty buying low because prices have often fallen for a long period of time before the dip. The predominant emotion is discouragement.

 

When stock prices have gone down, down, down, like they have this year, so many people get emotional and sell low… and they justify that by saying… I’m sick of losing money… and if I sell, I guarantee that I’ll stop losing money. So many sell low.

 

But on the flip side, why isn't everyone selling high? It's because prices have grown. It's hard to sell out of upward momentum. Up, up, up, up, up, friends are making money. You’ve got FOMO. This emotion is euphoria. This makes people buy - maybe not at the peak - buy they often buy higher that what they sold for.

 

But despite all this, most people believe that they're above-average investors—despite the statistical impossibility. This effect is called illusory superiority.

 

It's like how 7 out of 10 people believe that they are above-average drivers.

 

People often sell lower & buy higher.

 

We'll just say this takes one's 5% inflation-adjusted stock return down to 4%. That's being kind.

 

Taxes & Fees

Long-term capital gains taxes start at 15%. The highest ordinary income tax rate is 37%, which is the short-term capital gains tax equivalent.

 

Those percentages are what get taken out of your profit - that’s what eats into the entire 10% return that we started out with here.

 

Even if your funds are sheltered in a 401(k) or many retirement account types, yes, you could get tax-deferred growth. But you must begin paying taxes in retirement.

 

Fees are something that vary quite widely.

 

So… an S&P 500 investor's return adjusted for: inflation, emotion, taxes, and fees is often below 2%. Maybe far below 2%.

 

We're not done.

 

Volatility

So many people miss this.

 

The Rule of 72 and other projections are based on a fixed annual rate of interest.

 

It's called the compound annual growth rate (CAGR).

 

Our example… with this Rule Of 72 assumed a smooth, exact 10% return every single year.

 

This is irresponsibly quixotic. The real world doesn't work this way.

 

Let's say that a price falls 20%—which again is a bear market. Now, you must gain 25% to get back to "even". That's just math.

 

Now, if it falls 40%, it must gain 66.7% just to return to sea level.

 

Using a smoothed CAGR diminishes the damaging effect of return volatility.

 

So let's take our 2% return that's already been adjusted for: inflation, emotion, taxes, fees. Now subtract out this volatility.

 

And now, you can see why real rates of return are often less than 0% for stock, mutual fund, and ETF investors. Maybe they’re minus 3%. Maybe they’re minus 12%.

 

Real stock returns often crumble faster than a Nature Valley granola bar. They're not good for you either—full of sugar and canola oil.

 

Note that I even used what many consider "good times" in my example—where we started with a 10% unadjusted return.

 

This is an audio format here on GRE Podcast Episode #399 so my analysis wasn't deeply technical nor replete with formulas for pinpoint accuracy.

 

You might remember when we had Garrett Gunderson here on the show a few times. He really goes deep on how stock & mutual fund investors typically lose prosperity year-after-year and Garrett thinks that I’m being kind when I say that a stock investor’s real return is “0”.

 

It helps you begin to understand why you rarely—if ever—met anyone that acquired wealth with these vehicles.

 

About ten years ago, while working at the state Department of Transportation in an 8' x 10' blue cubicle, I began to realize some things:

  • Investing in retirement plans makes me safe and normal. I don't want a life that's safe and normal. That’s not extraordinary at all.
  • Every dollar invested in stocks and mutual funds is a dollar that cannot leverage other people's money.
  • Retirement plans provide zero income until I'm old.
  • I won't get ahead by following the herd.

Later, I interviewed the actual man that invented the 401(k) plan, Ted Benna.

 

Benna told me directly that the plans don't serve people the way they were intended. This helped complete my catharsis.

 

And my interview with Ted Benna is recorded. You might remember that episode. That was GRE Podcast Episode 197… if you haven’t heard it. 

 

Yeah, the guy that actually invented the 401(k) in the late 1970s. That’s here on Episode 197.

 

So, now you understand much of why I haven't owned any stock, mutual fund, or ETF-based investment at all since 2014.

 

This show is called “Get Rich Education”. So I could talk about anything related to wealth-building and stay on-point. 

 

But now you understand why I don’t discuss stocks. 

 

Real estate has some drags too. For example, investors often underestimate their maintenance and repair costs.

 

Ultimately, the fact that Real Estate Pays 5 Ways™ is why it's superior. It's how anything less than a 20% to 25% fully-adjusted rate of return is disappointing (learn more). 

 

Because real estate is an illiquid asset, this acts as a healthy barrier against "panic" buying or selling. Illiquidity diminishes the deleterious effects of emotion and volatility.

 

I do know investors who have created financial freedom through real estate, a lot of them, and I'm one.

 

If I can distill it down into one word for you, the short story about why I've met countless people that have graduated from middle class to wealthy through real estate is leverage.

 

Some of this is natural bias because I hang out in real estate circles, so I just tend to meet more of these people.

 

To stock investors, leverage is only available to more sophisticated types. Even then, it often comes with margin call risk. It's in a more limited measure than its wide availability in real estate.

 

Bear markets… like we have right now in stocks make people re-evaluate things.

 

To a younger investor that's potentially experiencing their first sustained stock bear market now, it's important to understand that...

 

...generally, stocks are not a game designed to build wealth for everyday people anyway

 

Times like these make people revert to fundamentals.

 

Ultimately, your success as an investor hinges upon your ability to provide others with value.

Be a person of value in the world.

 

There have been few times in modern history when owning real estate demonstrates more intrinsic value than it does today.

 

You're providing others with what has increased in usefulness and is historically scarce in supply… at the same time.

 

Wealth comes down to your ability to be valuable.

 

When it comes to residential real estate, there are so many ways that we can segment it. Later on today, we’ll discuss new-build properties vs. existing properties and what’s going on in those markets today.

 

We can also parse the space with LTRs vs. STRs.

 

When we define that, of course, as the name would allude to, it is based on the duration of resident stay.

 

Depending on the jurisdiction and more, a rental period of under 30 days could be considered a STR (some people refer to these as AirBNBs or VRBOs)… or even up to lease periods of less than 6 months could be considered STR.

 

LTRs have more predictable long-term income… because a tenant often signs on for a lease period of one year or more… and LTRs are also more recession-resilient.

 

STRs have lower occupancy - but because the daily rate is so much higher, they can be more profitable than LTRs.

 

When you look at any investment, it’s so fundamental to understand who you serve. Back to my point about stocks, it helps you understand how you can be a person of value.

 

In LTRs, you serve families, roommates, and everyday mom & pops.

 

Until just five years ago, STRs principally served two groups of people -  Vacationers & business travelers. 

With what happened in the world starting in 2020 with the virus, the STR community was concerned that the business traveler would go away & not come back.

 

But it didn’t seem to matter, because increasingly, over the last 5+ year, you have more & more digital nomads and WFA-types that rent STRs.

 

LTRs - Midwest & South, away from city center

STR Location - resorts, beach communities, ski resorts

 

HOA limits are something that you have more of with STRs.

    STR lodging or rental tax to the resident, you also get to charge the resident with the cleaning fee

 

Property Mgmt. costs tend to be 8-10% of each month’s for the owner of LTRs.

For STRs, you’ll often pay 20% or more since there are more resident turns & more advertising & listings to manage. 

 

When it comes to financing, you’ll often find LTRs to have more availability than STRs. This is huge… since leverage is what really creates wealth. 




Damages: STRs tenants pay upfront and usually place a CC on file to cover any damages. So there is some more protection that way.

 

One great piece of REI guidance is that the best STRs are the property types where if that market dried up, you could fall back onto them and use that same property as a viable LTRs.

 

To summarize what you’ve learned so far today…

 

  • The definition of a bear market is when a market has lost 20% or more of its value from a recent high.

 

  • Stocks don’t create wealth due to inflation, emotion, taxes, fees, and volatility. A lot of people miss that until it’s too late and it’s nearly retirement time - or when they thought they could retire.

 

  • LTRs and STRs have a lot of trade-offs. LTRs are easier to finance and have more recession resistance. STRs can provide more income when its dialed in just right. LTRs have the longer track record.

 

Coming up, a guest & I are going to discuss today’s opportunity on brand new construction rental property. 

 

That’s straight ahead. I’m Keith Weinhold. This is Get Rich Education.

______________________

 

Oh, yeah. Some good content from our guest on the pros and cons of using a construction loan with these new-build rental properties. You sure don’t have to go that route if you don’t want to.

 

For this batch of properties, and it is an ongoing batch of constantly refreshing properties, if you want to get to the front of the line, go ahead and e-mail our investment coach Naresh.

 

You not only get access to available properties - SFHs up to four-plex & sometimes larger, existing build & new-build, some properties conducive to STRs at times - though most are LTRs… some really inexpensive properties, at times less than $150K - they would tend to be existing, renovated properties, not new ones. 

 

For access to all those property types and free coaching, contact Naresh here.

 

You can do that at: naresh@getricheducation.com

 

Coming up here on the show… next week, for milestone episode 400 - it is Miracle Morning author Hal Elrod & I, discussing investor mindset and relationship-building in real estate. Yes, it look longer than I expected to get Hal & I together at the same time. That finally happens next week. Our Operations Lead here at GRE, Aundrea, is expected to be here with you & I for that show next week too.

 

The week after Hal Elrod, the “International Man”, Doug Casey joins us. Last time he was here, we discussed ideals like liberty & freedom. This time, it’s going to be about economics & it’s usually pretty gloomy commentary with Doug… but he keeps it real.

 

Then, down the road, Rich Dad Tax Advisor Tom Wheelwright is back on the show with us yet again to help you cut your taxes toward zero.

 

So with Hal Elrod, Doug Casey, and Tom Wheelwright coming up… I’d say that one inspires you, one depresses you, and one informs you. 

 

Hal being the inspiration

Doug being the source of the depression - he knows that I kid, I was joking with Doug Casey about that last time

And then, Tom Wheelwright being informative with… seemingly… some new tax plan that he has to tell you about.

 

Then after that, negotiation expert Chris Voss returns to the show. You might have seen his masterclass course. 

 

So… GRE is so stacked with great shows in the near future here.

 

In inflationary times, there is no better place to invest than in real estate.

 

I mean, even if you bought a property with no loan & with no tenant in it, real estate would be an inflation hedge just based on that alone… just based on it’s capital price tracking inflation.

 

But then you get the leverage where you can 4X or 5X inflation… while also having your debt debased… while also having your cash flow OUTPACE inflation since your biggest expense - the mortgage - stays fixed.

 

This is just one of so many reasons why real estate is what’s made more ordinary people wealthy than anything else. 

 

I really encourage you to get started… not only do we have this new coaching service steeped in GRE principles… but it’s also free… and we also have available properties.

 

I encourage you to reach out to our friendly GRE Investment Coach, Naresh at

 

naresh@getricheducation.com 

 

Until next week for Episode 400, I’m your host, Keith Weinhold. DQYD!

Direct download: GREepisode399_b.mp3
Category:general -- posted at: 4:00am EST

Are “coffin homes” coming to the United States? This is concerning. Housing is so expensive that people live in cocoons.

A new Biden plan makes efforts to increase American housing supply.

Finally! We need help on the supply side, not the demand side.

I explore recession prospects with you. 

During 7 of America’s 8 recessions (over the last sixty years), home prices only fell once.

What Really Matters: “If you had invested $1,000 in JP Morgan in 1882, you’d be dead today.”

You can borrow against your RE portfolio’s value with a cash-out refinance, tax-free. It’s like “lump sum cash flow”.

Add properties to your portfolio through our international network at GREmarketplace.com

Resources mentioned:

Show Notes:

www.GetRichEducation.com/398

GRE Video: What Really Matters

https://youtu.be/Yhkvjg-gj9Q

California’s Cocoon-Like Pods:

https://www.cbsnews.com/news/sleeping-pods-startup-800-a-month-brownstone-shared-housing/

Biden’s plan to increase American housing supply:

https://www.whitehouse.gov/briefing-room/statements-releases/2022/05/16/president-biden-announces-new-actions-to-ease-the-burden-of-housing-costs/

American Median Home Price Since 1963:

https://fred.stlouisfed.org/series/MSPUS

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 877-74-RIDGE

JWB’s available Florida income property:

CashFlowAndGrowth.com

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.co

By texting “GRE” to 307-213-3475 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Make passive income with apartment and other syndications:

www.imaccredited.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode398_.mp3
Category:general -- posted at: 4:00am EST

Will you be banned as a real estate investor? Some jurisdictions consider adopting this stance to keep soaring prices in check.

Some workers cannot afford to return to the office. If they leave home, they would have new expenses for gasoline, meals, parking and the big one—child care.

Of the “5 Ways Real Estate Pays”, historically: three are now high, one is low, and one is the same.

Caeli Ridge joins us. She’s the President of Ridge Lending Group. They specialize in income property loans.

Despite higher mortgage interest rates, investor-centric mortgage companies like Ridge haven’t seen much decline in business. Learn why.

Their “All-In-One Loan” can reduce the amount of property interest that you pay over time. It’s a 30-year line of credit with high flexibility.

Use Ridge’s All-In-One Loan Simulator to see if you save: https://ridgelendinggroup.com/aio-loans/

We discuss interest-only loans (which I like) and negatively amortizing loans. The latter got borrowers in trouble during the Global Financial Crisis; LTVs were as high as 115%.

Interest rate lock periods are up to 90 days at Ridge.

Investing out-of-state is easy. A mobile notary comes to your home, office, or even on vacation at a resort.

Ridge helps you sequence your investor loans, taking a long-term, holistic approach to your financial freedom.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/397

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 877-74-RIDGE

All-In-One Loan Simulator to see if you save: 

https://ridgelendinggroup.com/aio-loans/

Dallas’ proposal to limit REIs:

https://www.businessinsider.com/hoas-and-legislators-consider-taking-action-against-real-estate-investors-2022-5

JWB’s available Florida income property:

CashFlowAndGrowth.com

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.co

By texting “GRE” to 307-213-3475 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Make passive income with apartment and other syndications:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode397_.mp3
Category:general -- posted at: 4:00am EST

The mad scientist of multifamily is here today. 

Neal Bawa is a data scientist. He keeps emotion out of real estate for investors in his $947M portfolio.

He believes that higher mortgage interest rates are a smaller obstacle than the Fed’s currency creation and destruction. He says: “Accept the risk.”

We discuss investor confirmation bias.

Neal thinks American cash flow will keep diminishing.

Of all emerging trends, Neal believes that the work from home trend is among the most substantial.

Learn more about Neal at www.MultifamilyU.com or by searching “Neal Bawa”.

The blockchain is a digital ledger. It allows everyone to access information publicly and securely. It allows for the democratization of information.

Blockchain looks to disrupt the real estate title industry. Exorbitant title insurance fees could go extinct.

Tokenization is easier with blockchain. This means that you can sell real estate shares without friction.

Institutional investors are poised to own more of the real estate market, taking share from mom-and-pop operators.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/396

Neal Bawa’s resources:

Google search “Neal Bawa”

Grocapitus.com

MultifamilyU.com

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 877-74-RIDGE

JWB’s available Florida income property:

CashFlowAndGrowth.com

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.co

By texting “GRE” to 307-213-3475 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Make passive income with apartment and other syndications:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode396_.mp3
Category:general -- posted at: 4:00am EST

Rents are spiking 13-15% annually in America today. When they rise, they rarely ever fall again. This is why rent amounts are called “sticky”. Learn why.

Even when I was a landlord during the GFC fifteen years ago, my rents didn’t fall.

Rents are skyrocketing due to:

  • Low housing supply
  • Higher prices
  • Higher interest rates
  • Demographics. 25-34 year-olds are in prime household formation years. They want their own place. This is America's most populous age cohort.

Next, I talk with an Alabama / Florida builder about how he overcomes today’s material supply chain and labor shortage difficulties.

They have a 93-day build time.

How? They store windows so that they cannot run out. 

Cabinets have been a problem so bad that they’ve had to leave homes 99% complete until cabinets were ready. 

Lumber and petroleum product price volatility has been a challenge.

They have their own division for titling vacant land for future building. 

Alabama has America’s 2nd-lowest property taxes. As an out-of-state investor, you get to pay property tax in the state where you own property, not where you live.

To get started with Alabama income property, start at: www.GREmarketplace.com/Alabama

This build-to-rent provider uses fixtures like: LVP, granite or quartz countertops, stainless steel appliances.

LTRs and STRs will be available shortly. Start at: www.GREmarketplace.com/Alabama

Resources mentioned:

Show Notes:

www.GetRichEducation.com/395

Get started with new-build AL & FL long and short-term rentals:

www.GREmarketplace.com/Alabama

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 877-74-RIDGE

JWB’s available Florida income property:

CashFlowAndGrowth.com

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.co

By texting “GRE” to 307-213-3475 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Make passive income with apartment and other syndications:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode395b_.mp3
Category:general -- posted at: 4:00am EST

The housing crash is 100% certain. That’s because it’s a supply crash, not a price crash.

I define a price crash as a loss in valuation of 20% or more.

Here are the bubble factors that I consider in today’s show: 

Price, inflation-adjusted price, interest rates, affordability, bond yields, personal incomes, foreign buyers, equity position, housing supply and more.

From 2018 to 2022, I tell you about my recent housing forecast history.

Redfin shows us signs of a housing market slowdown. 

For Jacksonville investment property, start here: www.GREmarketplace.com/JAX

Properties that don’t cash flow with a 20% down payment often do with a 40% down payment. But your leverage falls from 5-to-1 down to 2.5-to-1.

Jacksonville has low cost properties, favorable climate, strong population growth, and growing industries like the Port Of Jacksonville.

Get started with Jacksonville property at: www.GREmarketplace.com/JAX

Resources mentioned:

Show Notes:

www.GetRichEducation.com/394

Get started with Jacksonville property:

www.GREmarketplace.com/JAX

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 877-74-RIDGE

JWB’s available Florida income property:

CashFlowAndGrowth.com

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.co

By texting “GRE” to 307-213-3475 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Make passive income with apartment and other syndications:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode394_.mp3
Category:general -- posted at: 4:00am EST

One niche that people are passionate about is investing in self-storage facilities (SSF).

SSFs are recession-resilient and there’s less to maintain. Your “tenants” are often cardboard boxes, not humans. This makes it easy to manage.

Tenants often expect to stay for 6 months, but stay for 3 years.

A 10 x 10 storage space might rent for $200. You could increase the rent by 10% to $220. They won’t move out due to a $20 increase, but you got a 10% rent hike across all your units.

The best SSF locations are accessible, for example, near an expressway interchange.

SSFs are little more than 4 pieces of sheet metal, a floor, and a door. 

You can invest alongside today’s SSF expert guest, Dave, at: www.gremarketplace.com/selfstorage

This business model: Buy property from a mom-and-pop operator, add size and scale, and sell to a REIT, all in a 3 to 6-year span.

One must be accredited and invest at least $50K. Investors receive reports quarterly.

SSF cash flow is modest, typically 3-7%. This is an equity play, where you could 2-3X your funds on the sale at exit time.

Learn more and get started at: www.gremarketplace.com/selfstorage

Resources mentioned:

Show Notes:

www.GetRichEducation.com/393

Get started. Learn more about self-storage investing:

www.GREmarketplace.com/selfstorage

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 877-74-RIDGE

JWB’s available Florida income property:

CashFlowAndGrowth.com

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.co

By texting “GRE” to 307-213-3475 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Make passive income with apartment and other syndications:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode393_.mp3
Category:general -- posted at: 4:00am EST

Why are home prices surging? I’ve got 10 big reasons and break down every one. Some reasons are not obvious.

America’s residential loan-to-value ratio is just 31%. 

Interest-only loans are my favorite loan type. You don’t need to make any principal payments.

Most people think interest-only loans awful. I explain why they’re often so advantageous. 

You meet GRE’s Investment Counselor, Naresh Vissa. For off market property, e-mail him at naresh@getricheducation.com.

Naresh’s service is free to you. He guides you through the purchase process.

He owns 8 properties in 4 states himself. 

Contact Naresh. GRE has 50+ properties available today - SFR up to 5-plex, LTR, STR, and more.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/392

E-mail GRE’s Naresh Vissa for off-market property:

naresh@getricheducation.com

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 877-74-RIDGE

JWB’s available Florida income property:

CashFlowAndGrowth.com

To learn more about eQRPs: text “GRE” to 307-213-3475 or:

eQRP.co

By texting “GRE” to 307-213-3475 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Make passive income with apartment and other syndications:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode392_.mp3
Category:general -- posted at: 4:00am EST

Uncertainty is high. Inflation is spiking, supply chains are unreliable, and COVID keeps hanging around. 

Russia’s invasion of Ukraine threatens to make inflation and supply chain reliability worse.

Amidst this backdrop, today’s guest, Richard Duncan, discusses prospects for a US recession.

Richard reiterates that the US needs credit growth of at least 2% annually (inflation-adjusted) to avoid a recession.

In a recession, nearly every asset class would be affected.

The wealth-to-income ratio’s importance is discussed.

The Fed has begun hiking interest rates. They soon plan to begin destroying dollars with quantitative tightening.

Richard wrote a new book, The Money Revolution. It includes a history of the Fed, and points out that China is positioned to become more powerful than the US.

But the US can stay in power if it creates tons of money in order to finance infrastructure, green energy, biotech, nanotech, and more innovation.

Richard maintains that capitalism no longer drives the economy. It’s “creditism” and “consumerism”.

I ask Richard about the risk of creating more dollars than production and innovation.

Contrary to seemingly everybody, Richard believes that the Fed is a force for good.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/391

Get MacroWatch for a 50% discount with the code “GRE”:

www.RichardDuncanEconomics.com

Richard’s new book:

The Money Revolution

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 877-74-RIDGE

JWB’s available Florida income property:

CashFlowAndGrowth.com

To learn more about eQRPs: text “RICH” to 307-213-3475 or:

eQRP.co

By texting “RICH” to 307-213-3475 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

New Const. Florida SFHs & multifamilies:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode391_.mp3
Category:general -- posted at: 4:00am EST

Now you have to earn your money twice. The first time is when you work for it, the second time is when you must invest it to beat inflation. My explainer on why higher interest rates slow inflation.

“Inflation is legalized counterfeiting. Counterfeiting is criminalized inflation.” -Robert Breedlove

When wages don’t keep pace with inflation, I explain why it destroys families.

We compare short-term (STR) and long-term rental (LTR) property in southwest Florida. Get started with buying properties yourself at: https://gremarketplace.com/SouthwestFlorida

Of course, Florida is an in-migration hotbed. Home price appreciation and rents are both 10%-20%+ year-over-year.

Today’s LTR tenants seek: infill lots, more square footage, an extra bedroom / den, and grocery store proximity.  

STR tenants want a pool. You really make your money November through April.

LTRs have more recession resistance than STRs. LTRs have more predictable, year-round income.

STRs often have $4,000-$5,000 a week of rent income. They have a 20% management fee. You can charge the tenants a cleaning fee. You owe utility costs and ~$100 monthly yard maintenance. 

Single-family rental properties are 1,500-1,900 sf on a ¼ acre lot, LVP flooring, granite countertops, stainless steel appliances, 9’4” ceilings, and concrete block exterior walls.

Pricing is in the low $300Ks to low $400Ks. Long-term rents are $2,000-$2,400 / month.

To get started with buying single-family homes and duplexes (long-term and short-term rentals) in southwest Florida, start at: https://GREmarketplace.com/SouthwestFlorida 

Resources mentioned:

Get started with SW Florida long-term and short-term rentals:

https://GREmarketplace.com/SouthwestFlorida

Show Notes:

www.GetRichEducation.com/390

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 877-74-RIDGE

JWB’s available Florida income property:

CashFlowAndGrowth.com

To learn more about eQRPs: text “RICH” to 307-213-3475 or:

eQRP.co

By texting “RICH” to 307-213-3475 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

New Const. Florida SFHs & multifamilies:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode390_.mp3
Category:general -- posted at: 4:00am EST

Bitcoin Beach is a real world place. It’s in the tropics and has zero property tax. It’s on the Pacific Ocean.

It reminds many of coastal California, but without the sky-high prices.

Both bitcoin and the US dollar are legal tender here. Unlike the US, there is zero capital gains tax on bitcoin. 

A beautiful 40-acre property is being developed on a hill overlooking Bitcoin Beach.

Besides luxury homes, condos, and tiny homes, the property plan includes Pacific views from every unit. Home sizes can range from 300 sf up to 10,000 sf.

Novel concepts are planned in the community: a gym that powers energy for bitcoin mining, earth embed homes, aquaponics eco-farm, orchards, gardens. More common amenities like a pool, restaurant, and bar are planned.

Get started with Bitcoin Beach real estate at: https://gremarketplace.com/BitcoinBeach

There’s an option for residency in a second nation for you.

Resources mentioned:

Get started with Bitcoin Beach real estate:

https://gremarketplace.com/BitcoinBeach

Show Notes:

www.GetRichEducation.com/389

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 877-74-RIDGE

JWB’s available Florida income property:

CashFlowAndGrowth.com

To learn more about eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

New Const. Florida SFHs & multifamilies:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode389_.mp3
Category:general -- posted at: 4:00am EST

Today’s high inflation rate is poised to go higher. The latest CPI was up 7.9%.

Home prices hit an all time high of $364,000 per Redfin, up 16% annually.

Safety factors, building restrictions and the environmental movement all contribute to higher home prices and more homelessness.

Larry Reed, the longtime former President of FEE - the Foundation for Economic Education - joins us.

He believes that free market principles incentive the best of human behavior - prudent risk-taking, hard work, innovation, and ethics.

Larry is an expert on the Great Depression. He relates those lessons to today’s economy.

We discuss real estate, economics, inflation, interest rates, and taxes.

Learn about the danger of the government “giving away free stuff”.

One fault with government intervention is favorable short-term action that results in long-term destruction. 

Resources mentioned:

Show Notes:

www.GetRichEducation.com/388

Foundation for Economic Education:

www.fee.org

Lawrence W. Reed’s website:

www.lawrencewreed.com

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 877-74-RIDGE

JWB’s available Florida income property:

CashFlowAndGrowth.com

To learn more about eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

New Const. Florida SFHs & multifamilies:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode388_.mp3
Category:general -- posted at: 5:00am EST

The greatest tax gift that your government gives real estate investors could be the 1031 Like Kind Exchange. This allows you to defer your capital gains tax and depreciation recapture.

There is no limit to the number of times that you can do this during your lifetime. You can make millions more with 1031 Exchanges.

But there are some specific rules to follow, like the 45-day identification period and 180-day timeframe in which to close upon replacement property.

You must use a Qualified Intermediary (QI) to facilitate your exchange.

Learn the pitfalls that nullify one from doing an exchange. 

This is a highly educational show. 

Resources mentioned:

Show Notes:

www.GetRichEducation.com/387

Get started with a 1031 Exchanges:

www.GREmarketplace.com/1031

Sign up for our free “Don’t Quit Your Daydream” newsletter:

www.GetRichEducation.com/Letter

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 877-74-RIDGE

JWB’s available Florida income property:

CashFlowAndGrowth.com

To learn more about eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

New Const. Florida SFHs & multifamilies:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode387_b.mp3
Category:general -- posted at: 4:00am EST

Residential and warehouse real estate have been two hot sectors.

With spiking house prices, investors are pushing out first-time home buyers. This increases the size of the renter pool.

Historically, when mortgage rates rise, so do home prices. It’s the opposite of what most people think.

For income property loans, get started at: RidgeLendingGroup.com

Learn what it takes to qualify for a conventional loan on investment property: down payment, credit score, debt-to-income ratio, etc.

There’s an update on today’s refinance climate.

Appraisals are generally keeping up with today’s hotter appreciation rates.

Learn about the easiest loan to qualify for that you’ve potentially ever experienced - the “DSCR”. 

Resources mentioned:

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 877-74-RIDGE

Sign up for our free “Don’t Quit Your Daydream” newsletter:

www.GetRichEducation.com/Letter

Show Notes:

www.GetRichEducation.com/episode/386

JWB’s available Florida income property:

CashFlowAndGrowth.com

To learn more about eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

New Const. Florida SFHs & multifamilies:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode386_.mp3
Category:general -- posted at: 4:00am EST

Inflation hit its highest since 1982. The government admits that the CPI is now 7.5%. 

Even if your wages don’t keep up proportionally with inflation, learn about how to profit from inflation with real estate.

What happens when your tenant can’t afford today’s higher rents? You get answers. 

Get my prediction on what will happen in a higher interest rate environment.

Our COO Aundrea Newbern, MBA, joins us. She tells us about the snowball effect of scaling up your real estate portfolio.

In a tight market with low real estate inventory, rather than the buyer waiving their inspection, it’s often better to shorten your due diligence period.

Aundrea tells us how to pay yourself a W-2 salary through your LLC. This helps you qualify for more mortgage loans.

E-mail Aundrea about finding Georgia income property at: info@getricheducation.com

Resources mentioned:

Sign up for our free “Don’t Quit Your Daydream” newsletter:

www.GetRichEducation.com/Letter

Show Notes:

www.GetRichEducation.com/episode/385

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

CashFlowAndGrowth.com

To learn more about eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

New Const. Florida SFHs & multifamilies:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode385_b.mp3
Category:general -- posted at: 4:00am EST

A laid-back lifestyle in a tropical climate typifies “Margaritaville”.

Margaritaville is a popular and flourishing real estate brand. There’s also short-term rental income stream for you here.

A new location is opening in Belize. It is closer to more of the US than Hawaii, and with warmer water. 

It has the largest reef in the hemisphere, good for snorkeling, diving, and fishing. 

This under-construction project has Caribbean beachfront.

The partners with the development are the largest private employer in Belize and the nation’s largest law firm.

Learn more about owning a Margaritaville villa in Belize at: www.GREmarketplace.com/belize

My guest & I discuss the lifespan of tourist locales. They emerge with visits from young backpackers. Later in the cycle, once “discovered”, it matures into visits from affluent tourists.

This is a rare opportunity for an everyday investor to partner with a strong brand - Margaritaville.

You can own a villa, use it for a few weeks a year, and rent it out for the remainder of the year. You can leverage Margaritaville’s STR management partner.

Prices start in the low $200Ks.

Real estate contracts are brief and written in English. In Belize, you don’t need title insurance. The government backs all titles. 

In-person tours are available and encouraged. Our show guest really wants to show you Belize.

Learn more and get started at: www.GREmarketplace.com/Belize

Resources mentioned:

Get started with this opportunity at:

www.GREmarketplace.com/Belize

Show Notes:

www.GetRichEducation.com/episode/384

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

CashFlowAndGrowth.com

To learn more about eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

New Const. Florida SFHs & multifamilies:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode384_.mp3
Category:general -- posted at: 4:00am EST

Housing prices surged 20% annually. Rents have now caught up, rising 19.3%.

New homebuilding hit a 45-year high.

There are three ways to measure housing market vibrancy: months of available inventory, sale-to-list price ratio, and days on market (DOM).

The level of available housing is now just one-fifth of what it needs to be.

A new poll shows that “work from home” trends benefit both bosses and employees.

I tell you about my Ecuador trip.

Our Operations Lead, Aundrea Newbern, MBA interviews me about real estate and my personal life. 

Resources mentioned:

Show Notes:

www.GetRichEducation.com/383

Today’s American housing supply:

https://fred.stlouisfed.org/series/ACTLISCOUUS

Video: Fitness & Financial Freedom, Age:

https://youtu.be/jqxjEFC_CYM

To learn more about eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

CashFlowAndGrowth.com

New Const. Florida SFHs & multifamilies:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode383_.mp3
Category:general -- posted at: 4:00am EST

A high school teacher reveals the sad state of financial education today.  Most students still think the path is: go to school, get good grades, go to college, get a job, work until you’re 65, and then start enjoying life. 

Dan Sheeks is a Denver, Colorado-based high school teacher and real estate investor. 

He enjoys working with teenagers. He also volunteers for the Colorado Attorney General to advance financial education.  

Just last month, Dan released a book with Bigger Pockets: “First to a Million: A Teenager’s Guide to Achieving Early Financial Independence”. See it here.

He discusses solutions for teenage financial independence: 

1) When you turn 18, get your first credit card 

2) “House hack” real estate by age 21

3) Good debt vs. bad debt - do teens understand?

4) Mindset

5) Avoiding mistakes like “meme coins”

6) Saving

Dan tells us the two main reasons why there’s a pathetic lack of financial education in school today - funding and politics.  

Resources mentioned:

Show Notes:

www.GetRichEducation.com/382

If you have a child, get Dan’s book:

First to a Million: A Teenager’s Guide to Achieving Early Financial Independence

Dan Sheeks’ online community for young people:

www.SheeksFreaks.com

Dan Sheeks’ e-mail (It’s OK to message him):

dan@sheeksfreaks.com

To learn more about eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

CashFlowAndGrowth.com

New Const. Florida SFHs & multifamilies:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode382_.mp3
Category:general -- posted at: 4:00am EST

There are two main ways to create wealth. Debt-free is not one of them. If you only use your own money, you’ll stay small.

Learn why most investments are like baseball cards.

One market in America has such astounding resilience that prices were hardly dented in the 2008 financial crisis. 

Median home prices are still below $300K here today.

Dallas-Fort Worth now spans 11 counties, with 7.6M people. 

This real estate provider focuses on the DFW suburbs. That’s where the growth is happening.

Importantly, they use a plan for mitigating their higher Texas property taxes. 

Housing here appears undervalued and underpriced. People are often underhoused.

Due to supply shortages, next day appliance delivery has disappeared.

This real estate provider has plenty of available inventory right now. They offer you in-house property management at 6.5%. SFR prices are $160K-$225K.

This is an actionable resource where you could buy property and benefit from the five ways you’re paid at: www.GREmarketplace.com/Texas

Resources mentioned:

Show Notes:

www.GetRichEducation.com/381

Get started with Texas property:

www.GREmarketplace.com/Texas

To learn more about eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

CashFlowAndGrowth.com

New Const. Florida SFHs & multifamilies:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode381_.mp3
Category:general -- posted at: 4:00am EST

You’ve been making $438 each night in your sleep. That’s one result if you’ve been following my plan. 

I compare real estate’s annual performance to: stocks, gold, silver, bitcoin, bonds, and oil.

This state ranked 3rd in Moody’s Housing Affordability Index, has the 7th-largest domestic economy, and is a two-hour flight from 75% of the US & Canada. 

This state is also home to offices for Google, Facebook, Carvana, and more. In 2020, it ranked 4th of 50 states in U-Haul’s net in-migration. 

You can still achieve a full 1% rent-to-value ratio here. Get started at: gremarketplace.com.

Today’s guests own a turnkey company with three models: 

     Signature Series - fully renovated

     Instant CashFlow Series - occupied, not rehabbed

     Equity Advantage Series - vacant, not rehabbed

This provider has stopped charging leasing fees for property management. Remarkable.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/380

Get started with Ohio property:

www.GREmarketplace.com/Cincinnati

www.GREmarketplace.com/Dayton

Check out Flip & Dani Lynn’s new podcast:

Freedom Through Passive Income

To learn more about eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

CashFlowAndGrowth.com

New Const. Florida SFHs & multifamilies:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode380_.mp3
Category:general -- posted at: 4:00am EST

A homeowner’s average equity position is now $294K. That’s what the median home value was not long ago - now it’s one’s equity.

I give a quick recap of major economic and real estate events this past year.

Last year, there was an average $56,700 of equity growth per property.

Our new website, GREmarketplace.com is rolling out. Register and get access to all of our: turnkey providers, pro formas, and sample properties. See videos of us interviewing property managers too.

Jeff Deist, President of the Mises Institute joins me. 

The Mises Institute champions liberty and free market principles. Learn more about them at www.Mises.org

Jeff & I discuss: real estate and rental markets, inflation, work from home, cash, low interest rates, debt. 

I ask Jeff how long he thinks we’ll see real price inflation through the 2020s decade, and prospects for a double dip recession.

Get our free wealth-building “Don’t Quit Your Daydream” Letter. I write it myself: www.GetRichEducation.com/Letter

Resources mentioned:

Show Notes:

www.GetRichEducation.com/379

Mises Institute website:

www.Mises.org

To learn more about eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

CashFlowAndGrowth.com

New Const. Florida SFHs & multifamilies:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREmarketplace.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode379_.mp3
Category:general -- posted at: 4:00am EST

With higher property prices, what rent-to-value ratio makes sense today? I answer this thoroughly.

Lower RVs make sense today due to: lower interest rates, new-build properties, the timing of equity harvesting and more.

GRE Marketplace is coming soon.

Tom Wheelwright joins us to help you reduce your property tax and cryptocurrency tax. 

Learn why some states have higher property tax than income tax or vice versa - CA, TX, NY, NJ, AK, and more.

Many property tax professionals only get paid based on how much they reduce your property tax.

Learn what works in actually getting your property tax reduced: comparables.

In cryptocurrency, you are taxed on either a sale or an exchange - not just a sale. For example, if you trade bitcoin for ethereum, you have a tax consequence.

If you buy a $3 cup of coffee with crypto, that is usually taxed.

Miners of crypto are taxed when they mine it, not only when they sell it.

Crypto is taxed at capital gains tax rates.

Tom does not believe that crypto will be outlawed in the US. Rather, it will be regulated through taxation and reporting.

Get our free wealth-building “Don’t Quit Your Daydream” Letter. I write it myself: www.GetRichEducation.com/Letter

Resources mentioned:

Show Notes:

www.GetRichEducation.com/378

Tom Wheelwright’s website:

www.WealthAbility.com

Tom’s popular book (I’ve read it):

Tax-Free Wealth

To learn more about eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

CashFlowAndGrowth.com

New Const. Florida SFHs & multifamilies:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode378_.mp3
Category:general -- posted at: 4:00am EST

I sold an eight plex apartment building for $789,000 last week. Learn lessons from my sale.

Dr. Randall Wray joins us to discuss where our economy is headed. He tells us about inflation, taxes, interest rates, and supply chain disruption dynamics.

Is Modern Monetary Theory (MMT) a utopia or disaster?

Taxes remove currency from the economy. This reduces inflation.

What about Universal Basic Income (UBI)? This basically means writing regular monthly checks to every citizen. Dr. Wray has strong opinions here.

Rapid currency creation and inflation is explored.

Dr. Randall Wray provides his recipe for full employment and stable prices.

It includes his answer of a “job creation program”.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/377

Learn more about Dr. Randall Wray:

www.levy.org

Bill Mitchell’s MMT blog:

http://bilbo.economicoutlook.net/blog/

To learn more about eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

CashFlowAndGrowth.com

New Const. Florida SFHs & multifamilies:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode377_.mp3
Category:general -- posted at: 4:00am EST

Tax The Rich. Learn how this theme is gaining traction in Congress.

Wealthability’s Tom Wheelwright joins us. 

Which taxes make sense: property tax, consumption tax, flat income tax, progressive tax?

In Tom’s opinion, learn why flat taxes will never happen. 

Oh no! A new 3.8% net investment income tax on business owners appears likely.

Will the 1031 Exchange benefit survive?

Next, The eQRP Company’s Damion Lupo joins us.

He tells us that the Checkbook IRA has been outlawed.

The eQRP is the retirement plan answer. It has: 10X the contribution limits of Traditional and Roth IRAs, zero UBIT tax, and you can invest in real estate, bitcoin, gold, or your own business.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/376

Tom Wheelwright’s Wealthability:

Wealthability.com

To learn more about eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

CashFlowAndGrowth.com

New-Build Florida income property is here:

GetRichEducation.com/SunshineState

New Const. Florida SFHs & multifamilies:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode376_.mp3
Category:general -- posted at: 4:00am EST

To get a rent increase, learn what NOT to tell tenants.

Memphis, Tennessee’s Mid South Home Buyers has supplied more property for GRE followers in history.

The longest-tenured GRE providers, Terry Kerr and Liz Brody tell us how they built and maintain this 20-year-old turnkey real estate investing company.

They start with buying the ugliest house on the block.

Rents & prices on SFRs in Memphis, TN: $675-$1100 and $79K-$120K

Rents & prices on SFRs in Little Rock, AR: $800-$1300 and $90K-$130K

You can get started with buying investment property yourself at: MidSouthHomeBuyers.com. They’re popular. There’s a wait list.

Resources mentioned:

Mid South Home Buyers:

www.MidSouthHomeBuyers.com

Show Notes:

www.GetRichEducation.com/375

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

www.CashFlowAndGrowth.com

eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

New-Build Florida income property is here:

GetRichEducation.com/SunshineState

New Const. Florida SFHs & multifamilies:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode375_.mp3
Category:general -- posted at: 4:00am EST

Doug Casey tells us that freedom and liberty don’t mean much anymore.

“America is no longer the land of the free.” -Doug Casey, GRE Podcast 374

He believes that a tax protester is a patriot. Doug also believes that roads, bridges, ports and schools should be run by the private sector, not governments.

“Regulation is the enemy of landlords and tenants.” -Doug Casey, GRE Podcast 374

Doug is a prolific author. He produces the International Man website, blog, and newsletter, and a YouTube podcast called “Doug Casey’s Take”

Resources mentioned:

Doug Casey’s website:

InternationalMan.com

Show Notes:

www.GetRichEducation.com/374

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

www.CashFlowAndGrowth.com

eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

New-Build Florida income property is here:

GetRichEducation.com/SunshineState

New Const. Florida SFHs & multifamilies:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode374_.mp3
Category:general -- posted at: 4:00am EST

Learn why I believe US home prices will rise 9-10% next year. 

That’s higher than historic norms and lower than this year.

Expect higher mortgage interest rates too. 

Counterintuitively, higher mortgage rates correlate with higher housing prices. Higher rates also correlate with lower supply.  

Today, inflation (6.2%) is double of mortgage interest rates (3.1%). 

This means that when you repay the bank, those dollars debase on them twice as fast as the bank’s interest charges can accrue on you.

Since 1994, mortgage rates have risen six times. House prices rose every time. Next year, the same thing is expected to happen; it will be seven in a row.

I explain why higher rates correlate with lower housing supply.

Housing supply has dropped an astounding 63% from two years ago. That’s the housing crash; it was a supply crash.

Resources mentioned:

Today’s low housing supply:

https://fred.stlouisfed.org/series/ACTLISCOUUS

Show Notes:

www.GetRichEducation.com/373

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

www.CashFlowAndGrowth.com

eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

New-Build Florida income property is here:

GetRichEducation.com/SunshineState

New Const. Florida SFHs & multifamilies:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode373_.mp3
Category:general -- posted at: 4:00am EST

Real estate investing and geography are both: location, location, location.

Economic guru and geopolitical strategist, Peter Zeihan, walks us around each US region to describe its economic strengths, weaknesses, opportunities, and threats.

“The next 24 months will be the greatest period of change that we have seen… at least since the second World War.” -Peter Zeihan

Get your map out.

We discuss the US: New England, Mid-Atlantic, Southeast, Deep South, Great Lakes, Ohio, Texas, Great Plains, Intermountain West, California, Pacific Northwest. 

Learn the three best states that are attracting foreign direct investment.

Peter loves Houston, Texas’ economic future.

Resources mentioned:

Learn More About Peter:

Zeihan.com

Show Notes:

www.GetRichEducation.com/372

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

www.CashFlowAndGrowth.com

eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

New-Build Florida income property is here:

GetRichEducation.com/SunshineState

New Const. Florida SFHs & multifamilies:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode372_.mp3
Category:general -- posted at: 4:00am EST

I talk with the person who I lend money to in order to rehab distressed properties. We discuss how it works and the 6-12% annual returns.

Importantly, many properties are secured in stable, cash flowing Ohio and around the Midwest and South. SFHs are common.

You are the lender, not the borrower. 

Get started at: GetRichEducation.com/Lending

Unlike owning a rental property where a tenant pays you to live there… a private lender program means that someone pays you to “rent out” the use of your money, typically for a year or less.

The operator, Dani Lynn Robison of Freedom Capital Investments in Springboro, Ohio, tells us how she has never lost an investor’s money. 

They have always paid back the lenders’ initial investment, plus interest, as agreed.

Learn about investing on the “debt side” of real estate rather than the “equity side” with private money lending at: GetRichEducation.com/Lending

Resources mentioned:

Learn More & Get Started:

www.GetRichEducation.com/Lending

Show Notes:

www.GetRichEducation.com/370

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

www.CashFlowAndGrowth.com

eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

New-Build Florida income property is here:

GetRichEducation.com/SunshineState

New Const. Florida SFHs & multifamilies:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode371_.mp3
Category:general -- posted at: 4:00am EST

Buying a huge $5M apartment building is daunting to most people.

We discuss how you get the money and experience for this.

Investor vocabulary explained: Capital stack, General Partner, Limited Partner, Non-recourse loan, Acquisition fee.

Owning a duplex is different from owning a 200-unit building. With the latter, you’ll have private investors, an on-site manager, and perhaps Yelp reviews to manage. Advertising is different.

Our guest, Michael Blank, emphasizes the importance of doing your first deal - big or small. Do it. That’s when the real learning begins.

Michael excels in teaching you how to find other investors to fund your big apartment deal. To start, merely educate others. Don’t ask for money.

Get started in learning more with Michael at: GetRichEducation.com/Apartments

Resources mentioned:

Get started with Michael:

www.getricheducation.com/apartments

Show Notes:

www.GetRichEducation.com/370

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

www.CashFlowAndGrowth.com

eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

New-Build Florida income property is here:

GetRichEducation.com/SunshineState

New Const. Florida SFHs & multifamilies:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode370_.mp3
Category:general -- posted at: 4:00am EST

Will Rogers said, “Find out where the people are going and buy the land before they get there.”

Florida in-migration has been a persistent trend since the late 1800s. Again, Florida led US in-migration between 2020 and 2021.

I interview a Florida property provider that I have heard other developers comment about, saying: “I don’t know how they deliver such low prices.”

You don’t have to pay agent markups. Buy direct.

These are new-build SFRs up to four-plexes. Get the report and connect with the provider at: GetRichEducation.com/SunshineState  

These Build-To-Rent properties are in central Florida, including Palm Bay (halfway down the Atlantic coast), Ocala, The Villages (both nw of Orlando) and more.

Growth of industry has been both varied and substantial: medical, technology, finance, international trade, agriculture, aerospace, and more than just tourism. Amazon, Space X, and Blue Origin all have a substantial presence.

This is path of progress real estate investing.

Recent sample property: New-build SFR, 3/2/2, 1,400 sf, concrete block construction, $225K sale price and $249K appraisal. (Appraisals don’t always exceed sale price; that’s a wider gap than usual.)

Build-To-Rent advantages: everything is new, warranties, higher tenant retention, location, provider buys in bulk, built-in equity, lower insurance cost.  

These new-build properties are on both infill and contiguous lots on tracts of land.

SFR communities often have amenities like pickleball courts, swimming pools, and gyms.

Tenant demand is so high that this provider gets first & last month’s rent for you in addition to security deposit.

Get actionable. New-Build Florida income property (with property management) is available here: GetRichEducation.com/SunshineState

Resources mentioned:

Show Notes:

www.GetRichEducation.com/369

New-Build Florida income property is here:

GetRichEducation.com/SunshineState

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

www.CashFlowAndGrowth.com

eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

New Const. Florida SFHs & multifamilies:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode369_.mp3
Category:general -- posted at: 4:00am EST

One question that I’m asked is: “How do I actually buy an investment property?”

I’m going to walk you through it all today, step-by-step.

You know, even after I bought my first property, it would have been difficult to recite all the steps. This is partly due to the process's 30-60+ day duration.

Though real estate has made more ordinary people wealthy than anything else, it is illiquid.

[Watch the video version of this podcast here: https://youtu.be/9jH4_-Bwujs ]

It takes more time to buy and sell real property.

There's no brokerage "point-click-done" or Robinhood swipes here.

This is both a good and bad thing.

Because there are several steps involved, there is no panic selling in real estate.

This illiquidity keeps real estate prices more stable than nearly any other asset class.

This stability (via illiquidity) is one reason why real estate comprises the heart of so many wealthy peoples' portfolios.

Real estate prices are a smooth, glassy lake compared to the raging sea storm of volatile gold, silver, cryptocurrency, oil, and stock markets.

In under 28 minutes, I lay out every step that you must know for buying rental property.

This masterclass-level instruction comes to you without paywalls or logins. I've made it public and free. It includes:

Myriad mistakes to avoid

Improving your credit report and score

A clever way to show a higher income to underwriters

Where I get my loans

Market selection

Property due diligence

Making an offer

Get an inspection (Always!)

Appraisal

Signing a Management Agreement

Property Closing

Own and collect rent (Cha-ching! Finally.) 

More

Resources mentioned:

Show Notes:

www.GetRichEducation.com/368

Watch the video version of this podcast here:

https://youtu.be/9jH4_-Bwujs

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

www.CashFlowAndGrowth.com

eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

New Const. Florida SFHs & multifamilies:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode368_.mp3
Category:general -- posted at: 4:00am EST

I’m in Birmingham, Alabama for a real estate field trip today.

Alabama is an investor-advantaged real estate market: low cost of living, some of the nation’s lowest property taxes.

Mindset: I tell a story on affording the time.

One of the most prolific real estate authors, Ken McElroy, joins us. 

I ask him about what happened to his 2021 housing crash prediction.

Ken & I discuss why there haven’t been more evictions since the national eviction ban ended.

We explain why don’t believe this will be massively disruptive. It matters. But to me, evictions will be a diffuse condition, not a sudden one.

Sadly, if a tenant owes their landlord tens of thousands of dollars, they’ll rarely pay.

Ken describes how he’s actively buying big real estate deals in today’s environment.

Ken gives a new “mark my words” prediction today.

Resources mentioned:

Learn more about Ken McElroy:

www.KenMcElroy.com

Birmingham, AL investment property:

www.GetRichEducation.com/Birmingham

Huntsville, AL investment property

www.GetRichEducation.com/Huntsville

Show Notes:

www.GetRichEducation.com/367

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

www.CashFlowAndGrowth.com

eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

New Const. Florida SFHs & multifamilies:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode367_.mp3
Category:general -- posted at: 4:00am EST

Landlords collect rent payments. "Lienlords" collect mortgage payments.

Learn how to obtain a stream of mortgage payments by owning the note (an IOU).

I tell you why banks would sell mortgage notes.

Learn the difference between performing and non-performing mortgage notes.

Bob Fraser from Aspen Funds joins us to tell us more.

Fewer borrowers defaulted on their mortgage payments in-pandemic due to forbearance.

Learn why a bank will sell you a mortgage note at a discount.

What happens when a borrower stops paying their mortgage.

There are either first lien or second lien positions to occupy. You wouldn’t expect this, but second liens can often be better due to their deep discounts.

Resources mentioned:

Learn more about Aspen Funds:

www.AspenFunds.us

Get mortgage loans for investment property:

RidgeLendingGroup.com

Show Notes:

www.GetRichEducation.com/366

JWB’s available Florida income property:

www.CashFlowAndGrowth.com

eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

New Const. Florida SFHs & multifamilies:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode366_.mp3
Category:general -- posted at: 4:00am EST

Learn how to qualify for an income property loan today.

We discuss what just made mortgage interest rates for investment property drop 1% overnight.

First, I discuss the difference between adequate safety vs. too much safety for tenants in investment properties.

Too many safety regulations have a cost that gets passed onto tenants and even increases homelessness. 

Caeli Ridge, President of Ridge Lending Group joins me.

A few weeks ago, mortgage interest rates for income property fell a full 1% due to the suspension of added risk layers that were added back in March. 

For an income property loan, you need: 1) 15-20% down payment and ~4% closing costs. 2) Credit score of 680 or better, 3) Show sourced & seasoned liquid assets, and 4) 50% maximum debt-to-income ratio. 

There are pros and cons of paying monthly PMI.

Today’s “typical” income property interest rate = 3.75%.

What happens when you try to get more than 10 income property loans? We discuss the terms, called “non-QM” loans.

Get started on your income property loan at: www.RidgeLendingGroup.com

Resources mentioned:

Get mortgage loans for investment property:

RidgeLendingGroup.com

Show Notes:

www.GetRichEducation.com/365

JWB’s available Florida income property:

www.CashFlowAndGrowth.com

eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

New Const. Florida SFHs & multifamilies:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode365_.mp3
Category:general -- posted at: 4:00am EST

When money supply is high, this lowers interest rates. I explain why.

Interest rates & inflation are positively correlated.

Interest rates are usually higher. This upside-down today. 

When interest rates rise, real estate prices rise too (Yes, not fall). Learn why.

Join me this Thursday, Sept. 30th, for a live Texas Properties webinar. Learn more here: www.GetRichEducation.com/Texas

Brien Lundin, organizer of the world’s longest-running investment conference, joins me. It’s the 47th Annual New Orleans Investment Conference. He’s also editor of the Gold Newsletter.

I will attend the event in-person.

Meet me Oct. 19th to 22nd. Sign up here: New Orleans Investment Conference.

Brien does not believe interest rates will rise appreciably anytime soon, nor will the Fed taper. He feels that this will be good for real estate.

The Fed must continue with massive currency creation.

Like many, Brien feels that inflation is not transitory.

Why isn’t the gold price higher than $1,700 - $1,900 per ounce?

Brien likes owning physical bullion. He thinks that crypto is worthwhile.

Resources mentioned:

Sign Up & Meet Me At the New Orleans Investment Conference: GetRichEducation.com/Events

Brien Lundin’s Gold Newsletter:

www.GoldNewsletter.com

Show Notes:

www.GetRichEducation.com/364

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

www.CashFlowAndGrowth.com

eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

New Const. Florida SFHs & multifamilies:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode364_.mp3
Category:general -- posted at: 4:00am EST

Should you buy for negative cash flow? Afterall, rents are rising fast; maybe they will catch up. I have a firm answer for you.

With a tight rental market, landlords can skimp on repairs because tenants have few alternative places to live.

Do the right thing. Make repairs. Don’t be a slumlord.

Property bidding wars are subsiding.

Meet me in-person Oct. 19th to 22nd at the New Orleans Investment Conference.

A provider of brand new construction Florida & Georgia investment properties joins me to discuss industry trends, including the challenge of supply shortages.

Developing vast tracts vs. infill lots.

Tenants love living in a new construction. This provider builds SFRs up to 13-unit buildings with vinyl plank floors and stainless steel appliances.

They sell investment properties to individual investors like you, with SFRs in the $200Ks. Start buying property at: GetRichEducation.com/Southeast

Resources mentioned:

Buy new-build FL & GA investment property. Start: 

GetRichEducation.com/Southeast

Sign Up & Meet Me At the New Orleans Investment Conference: GetRichEducation.com/Events

Show Notes:

www.GetRichEducation.com/363

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

www.CashFlowAndGrowth.com

eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

New Const. Florida SFHs & multifamilies:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode363_.mp3
Category:general -- posted at: 4:00am EST

Steep rent increases are spreading like a… pandemic.

Some metros are seeing annual rent increases of 10% to 15%.

It's all part of real estate's new "space race".

It’s easier to get big rent increases *between tenancies*, not with your long-term tenants.

GRE’s own Aundrea Newbern joins us to answer, “Should you become a real estate agent?”

Aundrea has her RE license in GA and is now training in her new home state of MI.

Pros of obtaining your license: more information, better access to MLS, training, networking, and income from representing buyers & sellers. 

Cons of obtaining your license: your time, upfront cost & ongoing fees, splitting commissions with your broker, disclosures and liability, traditional licensee activity has little to do with investors. 

Summary: You need to use your license for at least 2-3 deals per year to potentially make it worthwhile.

For real estate in MI and GA, e-mail Aundrea at: aundrea@getricheducation.com 

Resources mentioned:

Show Notes:

www.GetRichEducation.com/362

Contact Aundrea:

aundrea@getricheducation.com

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

www.CashFlowAndGrowth.com

eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

New Const. Florida SFHs & multifamilies:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode362_.mp3
Category:general -- posted at: 4:00am EST

Rents are skyrocketing, up 11.4% just since the start of this year per Apartment List.

Increases like this could mean a 25% increase in your cash flow.

Rod Khleif has made big failures. I mean that in the best way. Ultimately, he was willing to fail often in order to become the giant success that he is today.

He lost $50M in the 2008 crash, even though his properties were at 30% LTV (70% equity).

Rod is a multifamily apartment building investor and syndicator. He motivates many with his successful seminars.  

We discuss “The Law Of The First Deal”.

Who you spend time with is who you become.

He’s an active RE buyer now, with 296 units under contract in San Antonio.

However, he sees an economic contraction coming.

To hedge against a potential RE market downturn, Rod likes to avoid C-Class property. He likes investing in “A” and “B” areas in southern states.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/361

Rod Khlief’s website:

RealEstateWithRod.com

Rod’s podcast:

Lifetime CashFlow Through Real Estate 

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

www.CashFlowAndGrowth.com

eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

New Const. Florida SFHs & multifamilies:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode361_.mp3
Category:general -- posted at: 4:00am EST

Today’s guest has been a GRE listener since 2019. 

He’s an MBA and Industrial and Manufacturing Engineer at a Fortune 500 Company. He still works at this full-time job.

Eric Schodowski learned about GRE and listened from Episode 1. Leverage, arbitrage, and inflation-profiting were new concepts to him.

When he switched jobs, he was able to access 401(k) and pension funds. Then, rather than living below his means, he expanded his means.

Eric Schodowksi has added 11 rental units: a four-plex in his home market of Baton Rouge, LA,  and turnkey properties in: Memphis, west Florida, and northwest Indiana.

His returns have been as high as 120% per year. 

Eric prefers turnkey real estate investing because it’s “hands-off”. Turnkeys are designed to perform for investors.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/360

Eric’s e-mail address:

Eric.LaBlue@gmail.com

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

www.CashFlowAndGrowth.com

eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

New Const. Florida SFHs & multifamilies:

www.B2Rdirect.com

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode360_.mp3
Category:general -- posted at: 4:00am EST

A 60% housing drop is what I’m talking about today. That's the real estate crash.

What has driven housing prices 23.4% higher year-over-year? Scarcity, utility, and demand.

I’m talking about a housing *supply* crash, not a price crash.

The guys from Wealth Without Wall Street, Joey Mure and Russ Morgan, join us.

They discuss why Wall Street makes money managers profitable, not individual investors.

Most individual investors are so used to abandoning what they really want, that it’s difficult to remember what their dream even is anymore. 

Racing to “zero debt” is a losing game for most people.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/359

WWWS’s financial passport resource:

WealthWithoutWallStreet.com/Passport

CNBC: Rent Prices Rising Faster:

https://www.cnbc.com/2021/08/11/rental-bidding-wars-

heat-up-as-economy-improves-in-tight-housing-market.html

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

www.CashFlowAndGrowth.com

eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode359_.mp3
Category:general -- posted at: 4:00am EST

Fifty years ago, money changed forever. Robert Kiyosaki joins us. He’s the “Rich Dad, Poor Dad” author.

President Richard Nixon effectively removed the dollar from the gold standard on August 15th, 1971. We play the audio clip.

Inflation ensued, exceeding 10% in the 1970s and 1980s.

What is money, anyway? I answer.

Gresham’s Law - bad money drives out good.

Kiyosaki tells us why he promotes freedom and economic decentralization.

My solutions to monetary inflation: 1) Real estate debt. 2) Gold. 3) Bitcoin. 4) Spend. 

Resources mentioned:

Show Notes:

www.GetRichEducation.com/358

Nixon removing dollar from gold standard:

https://www.youtube.com/watch?v=4-cB1Z9qceI

Jerome Powell on dollar printing:

https://www.youtube.com/watch?v=lK_rYS8L3kI

Buy real estate:

www.greturnkey.com

Buy gold:

www.apmex.com

Buy bitcoin:

www.coinbase.com

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

www.CashFlowAndGrowth.com

eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode358_.mp3
Category:general -- posted at: 4:00am EST

Homes in car-dependent areas have appreciated at 33%; mass transit areas 16% over the last eighteen months. Suburban real estate wins.

Alabama and Tennessee have: net in-migration, low cost of living, high rents with a low purchase price, low property tax, jobs, and housing affordability.

SFRs and duplexes are offered in: Chattanooga, Birmingham, and Huntsville.

In many Alabama markets, low income areas have appreciated more than high income areas.

Chattanooga duplexes: $2,200 rent / $240,000 price. 0.9% RV ratio.

SFRs are 3 bed, 2 bath: $1,300-$1,500 / $160K-$210K price.  

Get the report & connect with the provider at: GetRichEducation.com/Chattanooga

Resources mentioned:

Show Notes:

www.GetRichEducation.com/357

Alabama & Chattanooga Investment Property:

GetRichEducation.com/Chattanooga

GetRichEducation.com/Birmingham

GetRichEducation.com/Huntsville

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

www.CashFlowAndGrowth.com

eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode357b_.mp3
Category:general -- posted at: 4:00am EST

You achieved 95% total rate of return if you bought a turnkey property one year ago, on average. 

How can that be true? It’s the “Five Ways Real Estate Pays” revisited.

Get our free, wealth-building “Don’t Quit Your Daydream” newsletter. It’s the real estate industry’s best at: GetRichEducation.com/Letter

Doug Fudge joins us. He’s President and CEO of Fudge Insurance. They are a brokerage where customers get a choice of insurance provider.

Fudge provides insurance in: CA, CO, FL, GA, NC, TN and KY.

He suggests higher deductibles and lower premiums for well-off investors.

Doug & I discuss trade-offs between replacement cost and actual cash value insurance.

Vacant land is generally not insured.

Every policyholder in Florida has had a rate increase in the last year. This is largely due to frivolous lawsuits.

Get a lower insurance rate with property that is: new-build, concrete block (not frame), further inland (not coastal), hip roof (not gable).

Flood and earthquake coverage are separate policies.

We discuss how to administer renters’ insurance and umbrella insurance policies.

Learn which insurance document you should never sign.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/356

Fudge Insurance:

www.FudgeInsurance.com

(407) 965-4253

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

www.CashFlowAndGrowth.com

eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode356_.mp3
Category:general -- posted at: 4:00am EST

Housing inventory could finally be turning the corner. There are now more available homes (549K) today than one month ago (504K) and two months ago (492K).

56% of homes still sell above their asking price. 

Get our free, wealth-building newsletter. It’s the real estate industry’s best at: GetRichEducation.com/Letter

I provide a condensed history of the income tax. In 1913, the top income tax rate was 7%.

Tom Wheelwright joins GRE for a record 21st time on green energy tax breaks.

Wind, solar, hydrogen, geothermal, nuclear, and car charging stations will likely receive more tax incentive support under Joe Biden. 

Oil & gas tax deductions could be limited or eliminated.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/355

Tom Wheelwright’s network:

Wealthability.com

Watch Tom & I on YouTube:

GetRichEducation.com/YouTube

Active Listing Count Of Homes:

https://fred.stlouisfed.org/series/ACTLISCOUUS

The Income Tax Since 1913:

https://bradfordtaxinstitute.com/Free_Resources/Federal-Income-Tax-Rates.aspx#

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

www.CashFlowAndGrowth.com

eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode355_.mp3
Category:general -- posted at: 4:00am EST

Rents are shooting up in many metros, including GRE cities.

Cyclically, housing prices shoot up first. Rent raises follow.

Inflation is hot: CPI is up 5.4%, PPI up 7.3%.

Tom Wheelwright, CPA of Wealthability joins us. Topics: 

Will income tax and capital gains tax increase? 

The 1031 Exchange is at risk!

How to contest your property taxes.

Involving your children in your business for tax breaks.

A more active tax audit climate. 

This is Tom’s record 20th GRE appearance.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/354

Tom Wheelwright’s network:

Wealthability.com

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

www.CashFlowAndGrowth.com

eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode354_.mp3
Category:general -- posted at: 4:00am EST

Society and media often lambaste landlords.

I discuss an absurd article titled: “Landlord System Morally Unethical… Contributing Nothing To Society”.

Some slumlords exist, but many landlords are responsible.

Many landlord critics think money is inherently evil.

Damion Lupo joins me to discuss what happened at the latest Real Estate Guys’ Investor Summit.

The homeownership rate is expected to decrease, meaning more renters.

It will take at least a decade to raise housing supply to meet demand.

We discuss whether inflation is here to stay or not.

Damion provides you with the best retirement plan that I’ve ever heard known - the eQRP. Make gains truly tax-free, have $100K+ annual contribution limits, and invest in virtually anything - real estate, crypto, your own business.

Learn more. Text: “EQRP” to “72000”.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/353

Chantilly News on landlords:

https://chantillynews.org/7141/opinions/landlord-system-morally-unethical-contribute-nothing-to-society/

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

www.CashFlowAndGrowth.com

Ali Boone’s Recommended Book:

https://amzn.to/2NsMVlF

eQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode353_.mp3
Category:general -- posted at: 4:00am EST

Paid-off properties have an opportunity cost that few consider.

Wealthy celebrities that choose mortgages are: Mark Zuckerberg & his wife, Elon Musk, Megan Markle & Prince Harry, Beyonce & Jay-Z, Chrissy Teigen & John Legend, and Charlie Sheen.

I personally have held millions in mortgage debt from a young age. I’ve long had the ability to pay it off, have not, and will not.

Good debt defined: 1) Secured. 2) Low mortgage interest rate. 3) Payments outsourced to tenants. 

How your bank sees your debt: 1) You have insured their collateral. 2) When you improve the property, you improve their collateral. 3) 1-4 unit properties - comparables. 5+ properties - income & debt coverage ratio.

The risk of high mortgage debt is being overleveraged. This means you cannot service the debt payments.

Chris Naghibi joins me. Though he dispenses financial guidance to celebrities, he helps everyday people qualify for mortgages.

We discuss mistakes to avoid with your credit score and debt-to-income ratio.

Learn about today’s appraisal environment.

Today, on average, homes sell for more than the asking price. That’s weird!

The average credit score is now 786 for mortgage borrowers. 

Resources mentioned:

Show Notes:

www.GetRichEducation.com/352

Chris Naghibi:

TikTok: @ChrisNaghibi

Instagram: @ChrisNaghibi

YouTube: Chris Naghibi 

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

www.CashFlowAndGrowth.com

Ali Boone’s Recommended Book:

https://amzn.to/2NsMVlF

EQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode352_.mp3
Category:general -- posted at: 4:00am EST

Legendary investor and business mogul Jim Rogers joins us from Singapore.

Inflation is on the rise. I was just asked to leave a tip at Subway for the first time.

Inflation nudges most people toward poverty. It moves GRE listeners toward prosperity.

Rents for detached SFHs are up 7.9% year-over-year.

The NAR just told us America is 6.8 million housing units short of demand.

World governments are printing, spending, and driving interest rates to all-time lows. Historically, this has led to higher inflation.

I ask Jim Rogers about inflation and the prospects for U.S. hyperinflation. 

He believes interest rates will go higher “in the next few years”. He likes tying up 30-year fixed rate mortgages.

Jim thinks the free market might take control of interest rate policy away from The Fed (wow!).

“The next recession is going to be the worst in my lifetime.” -Jim Rogers

Jim Rogers & I also discuss: MMT, agricultural real estate, cryptocurrency, and advice for a young person.

I explain what CBDCs are - Central Bank Digital Currencies.

Resources mentioned:

Jim Rogers’ resources:

www.JimRogers.com

SFH Rents See Huge Gains:

https://www.cnbc.com/2021/06/15/rents-for-single-family-homes-just-saw-the-largest-gains-in-nearly-15-years.html

America Is Short 6.8 Million Homes:

https://www.businessinsider.com/housing-market-short-millions-homes-homebuilding-real-estate-nar-report-2021-6

Show Notes:

www.GetRichEducation.com/351

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

www.CashFlowAndGrowth.com

Ali Boone’s Recommended Book:

https://amzn.to/2NsMVlF

EQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode351_.mp3
Category:general -- posted at: 4:00am EST

Rents are up, up, up. This is because surging home prices are displacing the first-time affordable homebuyer.

Rich Dad Sales Advisor Blair Singer joins us. He helps you get that “little voice” in your head to tell you the right thing.

When you master your little voice, you more often move from employee to business owner or entrepreneur. It takes self-belief. Begin with the end in mind.

Blair tells you why you don’t have to be an attack dog in sales. Just help others!

I try my sales pitch with Blair, then he tells me that my sales style is a retriever.

In a selling situation, the person with the highest energy wins.

Resources mentioned:

Blair Singer’s resources:

www.BlairSinger.com

Show Notes:

www.GetRichEducation.com/350

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

www.CashFlowAndGrowth.com

Ali Boone’s Recommended Book:

https://amzn.to/2NsMVlF

EQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode350_.mp3
Category:general -- posted at: 4:00am EST

Learn the housing price level every year from 1963 to present with an entertaining retrospective - from $18K to $372K.

Top takeaways over time: 1) Real estate usually goes up. 2) Real estate does not always go up.

Housing rents and prices often correct toward each other.

Home prices are rising globally. The highest: Turkey, New Zealand, Luxembourg, and Slovakia. Some of the lower rises are in East Asia.

Canadians can hardly believe that Americans get 30-year fixed rate mortgages, 1031 Like-Kind Exchange.

Redfin CEO Glenn Kelman believes that high housing demand is cooling off and the market is normalizing.

Building a home has never been more expensive.

I cover a case study for you about how new-build Boise single-family ranch homes had a sale price increase of $472K up to $747K over the last two years.

Your tenant is probably doing better this year than last. Unemployment is down to 5.8%.

Rent amounts are more stable than home prices.

I draw the line. Current rent vs. own dividing lines are 0.7% RV ratio and $250K purchase price.

You can still find decent $100K - $150K properties in: Memphis, Little Rock, Cincinnati and Dayton

Resources mentioned:

Median New House Prices (Census, HUD):

https://fred.stlouisfed.org/series/MSPUS

Bloomberg: Global Home Price Rise:

https://www.bloomberg.com/news/articles/2021-06-03/global-home-prices-rise-most-since-2006-fueling-bubble-concerns

Music samples used with permission.

Show Notes:

www.GetRichEducation.com/349

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

www.CashFlowAndGrowth.com

Ali Boone’s Recommended Book:

https://amzn.to/2NsMVlF

EQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode349_b.mp3
Category:general -- posted at: 4:00am EST

With only small rent increases, your cash flow can rise 20-50%. Learn how to successfully achieve these small rent increases.

Also, learn what to never say to your tenant. It’s a mistake that I made.

Make gradual rent raises and provide justification for the increase.

Florida’s surging net in-migration provides tons of rent-paying tenants. The numbers work here for out-of-state investors.

Learn more & get properties at www.GetRichEducation.com/CentralFlorida

These new construction SFRs are often $200K. Investors must come in all-cash and do a cash-out refinance later. 

This BRRR is: Buy, Rent, Refinance, Repeat. (No rehab.)

Rent-to-price ratios are near 0.8%. Insurance premiums are often extremely low on these brand new builds.

Renter demand is astounding. There are more than 1,000 tenants on waiting lists for these new-build Florida SFRs on quarter-acre infill lots.

Get started with new construction Florida income property at: www.GetRichEducation.com/CentralFlorida

Resources mentioned:

Find new-build Florida income property:

www.GetRichEducation.com/CentralFlorida

Show Notes:

www.GetRichEducation.com/348

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

www.CashFlowAndGrowth.com

Ali Boone’s Recommended Book:

https://amzn.to/2NsMVlF

EQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode348_.mp3
Category:general -- posted at: 4:00am EST

Will the rise of 3-D printed homes make housing construction so cheap that values of all existing homes will depreciate?

I explore this with you. 

It’s the third installment of our 3-part housing supply crisis series.

3-D printing uses lots of concrete. It is the world’s most popular building material.

No matter how one builds, there are still costs of: labor, land, materials, design & planning, architecture & engineering, site work & drainage, and regulation.

A recent NAHB study shows that the regulatory cost of building a new single-family home is a staggering $94,000. 

Resources mentioned:

Show Notes:

www.GetRichEducation.com/347

$94K Regulatory Cost To Build A New Home:

https://www.nahb.org/news-and-economics/industry-news/press-releases/2021/05/regulatory-costs-add-a-whopping-93870-to-new-home-prices

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

www.CashFlowAndGrowth.com

Ali Boone’s Recommended Book:

https://amzn.to/2NsMVlF

EQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode347_.mp3
Category:general -- posted at: 4:00am EST

What one thing could crash the housing market … even more than expiring forbearance? It’s something that NO ONE is talking about. 

Is the economy REALLY coming back? 

Where is inflation headed? 

Hyperinflation & real estate is discussed.

I tell you what surprising investment I personally made last month. 

Then, what’s an important part of your investor mindset that you probably haven’t thought about before? 

Through Q3 of last year, homeowners have an all-time inflation-adjusted high of $257K in equity.

Some NYC mayoral candidates have embarrassing perceptions of Brooklyn housing costs. 

Aundrea Newbern from GRE Operations & I review a book we like: “NOT Your How-To Guide To Real Estate Investing” by Ali Boone.

My new 5-part Video Course on the “5 Ways Real Estate Pays” is free and open to all. Go to “Get Rich Education” YouTube now.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/346

Get mortgage loans for investment property:

RidgeLendingGroup.com

JWB’s available Florida income property:

www.CashFlowAndGrowth.com

Ali Boone’s Recommended Book:

https://amzn.to/2NsMVlF

EQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode346_.mp3
Category:general -- posted at: 4:00am EST

A shipping container costs less than $5,000. Why doesn’t America build more housing with them?

Gregg Cohen of JWB Real Estate Capital in Jacksonville, FL reveals how their 18-unit shipping container apartment complex created financial loss.

The shipping container apartments are 320 square feet each.

Learn about: what a vertically integrated company is, build-to-rent homes, turnkey real estate, the pros and cons of shipping container housing, permitting, and zoning constraints. 

Making shipping containers livable adds expense: windows, heating, cooling, electricity, water, ventilation and fire safety. 

JWB blew their budget! $1.3M budget vs. $2M reality. 

Gregg estimates that shipping container building costs them 20-30% more than conventional wood frame construction.

Their non-pandemic rent collection = 98.5%

In-pandemic rent collection worst = 97%

2020 rent collection total = 98%

JWB has available inventory of Jacksonville income property now - during the housing supply crisis. How can they do that? He tells us.

If you seek more income property, start at: www.CashFlowAndGrowth.com or phone (904) 677-6777.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/345

JWB’s available Florida income property:

www.CashFlowAndGrowth.com

JWB’s Facebook Group:

www.JWBFacebookGroup.com

Get mortgage loans for investment property:

RidgeLendingGroup.com

Ali Boone’s Recommended Book:

https://amzn.to/2NsMVlF

EQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode345_.mp3
Category:general -- posted at: 4:00am EST

Kristin B. Tate (FOX News, CNN, MSNBC) joins me to discuss Biden tax and housing policies, inflation, and investing.

President Joseph R. Biden, Jr.’s bill to create a $15,000 first-time homebuyer tax credit is wrong. It helps the demand side. America needs help on the supply side. I give ideas.

Biden wants to severely limit the 1031 Tax-Deferred Exchange for real estate investors. Only your first $500K of gains would be exempt from capital gains tax.

This would cause a rush of sales in the real estate market. It would also hurt long-term liquidity for larger apartment buildings. 

Zumper’s National Rent Report shows substantial rent increases in many Midwest and South real estate markets. I detail them.

Next, Kristin B. Tate tells us why printing trillions of dollars means that investors should get out of the dollar.

We discuss Joe Biden’s proposed increases to both income tax and capital gains tax.

Kristin favors buying real estate assets to hedge against inflation: real estate, physical gold & silver, and cryptocurrency.   

Resources mentioned:

Kristin B. Tate on Twitter:

@KristinBTate 

Kristin B. Tate’s website & books:

www.KristinBTate.com

Show Notes:

www.GetRichEducation.com/344

Zumper National Rent Report:

https://www.zumper.com/blog/rental-price-data/

Get mortgage loans for investment property:

RidgeLendingGroup.com

New Construction Turnkey Property:

CashFlowAndGrowth.com

Ali Boone’s Recommended Book:

https://amzn.to/2NsMVlF

EQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode344_.mp3
Category:general -- posted at: 4:00am EST

Today, available homes are as scarce as a rare earth mineral. 

Under 500K homes are available for sale today, well below the historic 1M-1.5M at any given time Source: Federal Reserve.

High demand exists independent of low inventory.

Developers and homebuilders need years to help us build our way out.

The development team of Rob Fuller and Jared Garfield tell us how today’s developers cope with the rising cost and unpredictable supply of: copper, lumber, PVC and other building materials.

Their project in Colorado Springs, CO is in the path of progress. In 2019, U.S. News & World Report named the area the #1 Economy In America.

The Denver Post stated that by 2050, Colorado Springs will be larger than Denver. (Wow)

The project is 800 acres of higher-end homes on 2.5-acre lots. Homes start in the high $600Ks. That does not work for cash flow via direct ownership.

This is not “spec building”. Homeowners have already funded with non-refundable earnest money.

You can project a construction loan to the project yourself. Cash-on-cash returns are 9% to 15%, depending on the investment amount. $100K minimum. Learn more about this project at www.GetRichEducation.com/ColoradoSprings

Investors have substantial guarantees and financial buffers. 

This is an A+ real estate asset class.

You can view weekly project drone footage. On-site visits are available. I might attend one where you could meet me in-person in Colorado Springs.

Resources mentioned:

Private Lending in the Path Of Progress:

GetRichEducation.com/ColoradoSprings

U.S. Active Home Listing Count:

https://fred.stlouisfed.org/series/ACTLISCOUUS

Show Notes:

www.GetRichEducation.com/343

Get mortgage loans for investment property:

RidgeLendingGroup.com

New Construction Turnkey Property:

CashFlowAndGrowth.com

Ali Boone’s Recommended Book:

https://amzn.to/2NsMVlF

EQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode343b_.mp3
Category:general -- posted at: 4:00am EST

Three reasons NOT to buy income property: 1) It is illiquid. 2) Speculative mania without cash flow. 3) You want zero involvement.

With that understanding, direct ownership of rental real estate still has the best risk-adjusted return today.

President Biden wants to keep people in their homes. He doesn’t want residents removed from their homes under his watch - both homeowners and renters.

Higher mortgage interest rates lead to both higher prices and lower supply. This is counterintuitive to many. I explain why. 

The last six times that interest rates rose in America, housing prices rose too.

I read the menu prices from McDonald’s restaurant in 1974. It makes inflation’s effect apparent.

Then Ken McElroy joins me. Together we discuss how inflation affects consumers and real estate investors from an in-person video at his Scottsdale, AZ office.

Ken reminds us how high inflation can go. It was 15% for a time in the 1980s.

Resources mentioned:

KenMcElroy.com

Show Notes:

www.GetRichEducation.com/342

Get mortgage loans for investment property:

RidgeLendingGroup.com

New Construction Turnkey Property:

CashFlowAndGrowth.com

Ali Boone’s Recommended Book:

https://amzn.to/2NsMVlF

EQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode342_.mp3
Category:general -- posted at: 4:00am EST

These homes are tiny, eco-friendly, and affordable, with the option of having smart home technology.

Panama has friendly people, safety, a low crime rate, and robust economy.

Organic food is grown on-site, recycled graywater waters your garden, there are community orchards, hiking trails, a yoga area, bird-watching stations, pool, river, and a sense of community. 

This tiny home community in the highlands often experiences temperatures in the 70s and 80s fahrenheit. It is a lush greenscape, not close to the beaches.

These tiny homes have 300 - 600 sf of interior space. 

Rachel Jensen joins us to tell us more. Only a few tiny homes are available now at: www.getricheducation.com/tinyhomes

Foreign owners can get full title to their property.

You can earn rental income from your tiny home, with in-house property management. 

You can fund your property via: all-cash, 50% loans, 80% loans, IRAs, gold, or cryptocurrency. Property prices start at $119K.

Second residency in Panama is an option for property owners. The next property tour is June 23rd - 27th, 2021. 

Learn more and get the report at: www.getricheducation.com/tinyhomes

Resources mentioned:

Panama Tropical Tiny Homes:

www.GetRichEducation.com/TinyHomes

Show Notes:

www.GetRichEducation.com/341

Get mortgage loans for investment property:

RidgeLendingGroup.com

New Construction Turnkey Property:

CashFlowAndGrowth.com

Ali Boone’s Recommended Book:

https://amzn.to/2NsMVlF

EQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode341b_.mp3
Category:general -- posted at: 4:00am EST

Your home is a liability, not an asset.

That’s according to Robert Kiyosaki. This is because your home takes money out of your pocket every month. An asset puts money into your pocket. 

Today’s guest, author and economist Daniel Amerman, has a different perspective. 

He states that forces like inflation and a mortgage (leverage) make your primary residence a strong investment vehicle.

Daniel’s research shows that historically, homeowners nearly double their equity in three years, triple it in seven years, and quadruple it in ten years (80% LTV loan).

We discuss whether home price increases are derived from appreciation or inflation.

First, I remind you why financially-free beats debt-free. Convert equity to cash flow. Extra mortgage principal paydown does the opposite - it converts cash flow to equity.

Classically, on a balance sheet, your home is an asset.

Remember that a homeowner’s return is not generated from equity. It is generated from the local housing market.

Hear my rant about how carpet beats hardwood floors.

Resources mentioned:

Daniel Amerman’s website:

www.DanielAmerman.com

Show Notes:

www.GetRichEducation.com/340

Get mortgage loans for investment property:

RidgeLendingGroup.com

New Construction Turnkey Property:

CashFlowAndGrowth.com

Ali Boone’s Recommended Book:

https://amzn.to/2NsMVlF

EQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode340_.mp3
Category:general -- posted at: 4:00am EST

Learn how to bring as little money as possible to the property closing table. 

Ridge Lending Group President Caeli Ridge tells us how to do this. She also predicts the future interest rate direction.

Mortgage interest rates hit all-time lows three months ago. Freddie Mac has tracked rates since 1971.

The 30-year fixed rate mortgage debuted in America in 1948. It’s an incredible tool that few, if any, other world nations have.

Before this, it took a 50% down payment and refinancing every 3-5 years.

Mortgage rates have been falling for 700 years! From the year 1311, we look at interest rate history in the French Crown, Spanish Crown, Italian merchants in Milan, Genoa.

The latest marker of today’s low housing supply is the fact that there are currently more real estate agents than available homes.

Is rush hour traffic a thing of the past? We explore this.

Caeli Ridge helps us understand the ominous new 7% Fannie Mae funding limit on single-family mortgages on second homes and investment properties. Result = higher loan prices.

Does it make sense to pay discount points at the closing table? Discount points are like prepaid interest. We explore pros and cons.

Often, a seller can pay up to 2% of your purchase closing costs.

Caeli predicts the future direction of interest rates. I’m refinancing properties with Ridge myself right now. Start at: www.RidgeLendingGroup.com

Resources mentioned:

Get mortgage loans for investment property:

RidgeLendingGroup.com

Show Notes:

www.GetRichEducation.com/339

Early 1900s Mortgage Rate Charts:

https://www.thetruthaboutmortgage.com/check-out-these-mortgage-rate-charts-from-the-early-1900s/

Interest Rates Have Been Falling For 700 Years:

https://www.visualcapitalist.com/700-year-decline-of-interest-rates/

There Are More RE Agents Than Homes For Sale:

https://www.wsj.com/articles/new-realtors-pile-into-hot-housing-market-most-find-it-tough-going-11616328002

New Construction Turnkey Property:

CashFlowAndGrowth.com

Ali Boone’s Recommended Book:

https://amzn.to/2NsMVlF

EQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode339_.mp3
Category:general -- posted at: 4:00am EST

The Fed is about to unleash a tidal wave of liquidity that you probably don’t know about.

I was recently at my favorite Mexican takeout restaurant. It was the first time they began asking for tips. This is inflation. It is likely not measured in CPI or Core PCE.

Richard Duncan from MacroWatch joins us to discuss how the coming monetary tsunami will stoke asset prices. 

This can continue the “price runup party” in real estate, stocks, crypto, and other assets.

Key learning: The Fed changes inflation policy when they see wage price growth, not commodity price growth.

Inflation won’t be high enough to cause interest rates to rise anytime soon.

We know that the Fed currently creates $120B per month. What few know about is the new, simultaneous $900B that the Fed is releasing from their Treasury General Account by the end of June. 

More currency + monetary velocity = inflation? No. Richard says there’s more to it, like credit expansion.

The newly passed $1.9T American Rescue Plan, plus a new Biden-proposed multi-trillion dollar infrastructure bill could stoke inflation in the short to medium-term. Richard does not believe high inflation is sustainable long-term. 

Get 50% off Richard Duncan’s “MacroWatch” when you use Discount Code “GRE” at: www.RichardDuncanEconomics.com

Though consumer price inflation should stay low, a lot of asset price inflation should continue.

Richard also reveals a scenario where interest rates could decline.

Resources mentioned:

Get 50% off MacroWatch. Use Discount Code “GRE”:

www.RichardDuncanEconomics.com

Show Notes:

www.GetRichEducation.com/338

Mortgage Loans:

RidgeLendingGroup.com

New Construction Turnkey Property:

CashFlowAndGrowth.com

Ali Boone’s Recommended Book:

https://amzn.to/2NsMVlF

EQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode338_.mp3
Category:general -- posted at: 4:00am EST

With shrinking national housing supply amidst surging demand, some investors cannot find sufficient inventory.

People are moving to places like: Texas, Tennessee, and Florida.

Suburban properties have higher appeal with today’s work-at-home trends.

New construction properties in infill areas have advantages: an established area, neighbors with equity. 

Learn about a system to help keep your property taxes discounted.

With all this in mind, learn about what capitalizes on all of these trends - and there’s available inventory.

Purchase prices are from the $140Ks & up - new construction - SFHs up to fourplexes and larger. Who knows how long this will last? Get started at: GetRichEducation.com/Texas.

You will receive a report and an invitation to a live Texas properties webinar with me this coming Friday, March 26th at 3PM ET.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/337

Learn more & attend Friday’s Texas properties webinar:

www.GetRichEducation.com/Texas

Mortgage Loans:

RidgeLendingGroup.com

New Construction Turnkey Property:

CashFlowAndGrowth.com

Ali Boone’s Recommended Book:

https://amzn.to/2NsMVlF

EQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode337_.mp3
Category:general -- posted at: 4:00am EST

I hope that it changed you.

Don’t quit your daydream.

-Keith

Resources mentioned:

Show Notes:

www.GetRichEducation.com/336

First American Real HPI:

https://www.firstam.com/economics/real-house-price-index/

Mortgage Loans:

RidgeLendingGroup.com

New Construction Turnkey Property:

CashFlowAndGrowth.com

Ali Boone’s Recommended Book:

https://amzn.to/2NsMVlF

EQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode336_.mp3
Category:general -- posted at: 4:00am EST

To get money for real estate, you don’t always have to save up every dollar yourself.

You can use: 

Equity from another property - my favorite

Seller-paid closing costs

Seller financing

House hacking

Rent income from duplexes and fourplexes

Lease-Purchase Agreement

Mortgage assumptions

Seller-held second mortgages 

Syndication

Partnerships

Ken McElroy joins me to discuss how to attract investors to your real estate deal and more.

He outlines borrowing from your 401(k) and using your retirement plan for real estate.

Teach others about what you know. Just give with nothing in return expected. People will trust you later when you have a real estate deal.   

Resources mentioned:

Ken’s free resource:

www.kenmcelroy.com/getricheducation

Show Notes:

www.GetRichEducation.com/335

Mortgage Loans:

RidgeLendingGroup.com

New Construction Turnkey Property:

CashFlowAndGrowth.com

Ali Boone’s Recommended Book:

https://amzn.to/2NsMVlF

EQRPs: text “EQRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

Best Financial Education:

GetRichEducation.com

Get our free, wealth-building “Don’t Quit Your Daydream Letter”:

www.GetRichEducation.com/Letter

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Direct download: GREepisode335_.mp3
Category:general -- posted at: 4:00am EST