Get Rich Education (general)

#211: Learn from Rich Dad Real Estate Advisor Ken McElroy.

We discuss debt mindset, cash flow, how to manage your team, how to vet property managers and contractors, screen tenants, how to avoid bad partnerships.

Ken owns $1 Billion worth of apartments.

He needs to place $70M-$80M worth of cash soon, and trade $300M of real estate the next three months.

Don’t say: “I can’t afford it.” Ask: “How can I afford it?”

Your financial income will never exceed your self-concept.

Overcoming your aversion to debt leads to wealth.

Cash flow vs. capital gains investing discussed.

See Ken’s instructional videos at kenmcelroy.com/videos.

__________________

Want more wealth?

1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2) Actionable turnkey real estate investing opportunity: GREturnkey.com

3) Read my best-selling paperback: getbook.at/7moneymyths

__________________

Listen to this week’s show and learn:

03:55 Mindset and self-concept.

09:05 Debt.

13:20 Cash flow vs. capital gains.

20:20 Paying taxes.

25:45 Partnerships: business, contractors, tenants, PMs, employees.

29:50 How to vet a Property Manager.

32:45 Vetting contractors.

37:52 Screening tenants.

39:40 Ken’s instructional videos at kenmcelroy.com/videos.

Resources mentioned:

Ken’s website: KenMcElroy.com

Book: The Power Of Now

Mortgage Loans: RidgeLendingGroup.com

Cash Flow Banking: ProducersWealth.com

Turnkey RE: NoradaRealEstate.com

QRP: TotalControlFinancial.com

Find Properties: GREturnkey.com

GRE Book: GetRichEducation.com/Book

Direct download: GREepisode211_.mp3
Category:general -- posted at: 4:00am EDT

#210: What you expect of yourself is exactly what you’ll end up getting.

Learn how to set up a life full of options, not obligations.

If you have an undesirable job and think you can’t switch to a happier, lower-paying job, I tell you how to.

How can you justify living a life where you celebrate when every week is over?

I update you with an asset class price whiparound: real estate, stocks, oil, gold, interest rates, wages and unemployment.

Next, I answer four of your listener questions:

  • Should I put 15% or 20% down payment on a property?

 

  • After buying ten properties, what’s next?

 

  • Mistakes to avoid with the 1031 Exchange?

 

  • Should I self-manage or hire professional property management?

 

I bring you today’s show from Anchorage, AK.

__________________

Want more wealth?

1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2) Actionable turnkey real estate investing opportunity: GREturnkey.com

3) Read my best-selling paperback: getbook.at/7moneymyths

__________________

Listen to this week’s show and learn:

03:00 You Become Your Expectations.

11:02 Asset class whiparound.

12:35 15% vs. 20% down payments on income property.

17:33 After buying ten properties, what’s next?

23:12 Mistakes to avoid with the 1031 Exchange?

27:20 Self-management or Professional property management?

38:18 I’m a real estate investor first, and buy my properties from GREturnkey.com.

Resources mentioned:

Properties: GREturnkey.com

Mortgage Loans: RidgeLendingGroup.com

Cash Flow Banking: ProducersWealth.com

Turnkey RE: NoradaRealEstate.com

QRP: TotalControlFinancial.com

Find Properties: GREturnkey.com

GRE Book: GetRichEducation.com/Book

Direct download: GREepisode210_2.mp3
Category:general -- posted at: 4:00am EDT

#209: You’re getting taxed in sneaky ways - both everywhere you look, and also where you DON’T look.

Americans spend more on taxes than housing, food and clothing costs combined.

Real estate has the best tax shelters - tax-deferred exchanges, rent income exempt from Social Security and Medicare tax, and tax depreciation sheltering more of your rent income.

Today’s guest, FOX News and CNN TV Contributor Kristin Tate, uncovers hidden taxes that you don’t even know that you’re paying.

Stealthy taxes are killing you. They’re often disguised as fees, licenses, and surcharges.

Once citizens pay a new tax, they get used to it, and just keep paying it.

Housing taxes, transportation taxes, utility taxes are often hidden. You learn where.

Your tax revenue often goes to a “general fund”, not where it “should”.

Graduated Tax vs. Regressive Tax - definition, relevance. Sin taxes.

We discuss what you can do to beat excessive taxation.

Kristin’s book, “How Do I Tax Thee” is on Amazon.

I bring you today’s show from Locarno, Switzerland.

__________________

Want more wealth?

1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2) Actionable turnkey real estate investing opportunity: GREturnkey.com

3) Read my best-selling paperback: getbook.at/7moneymyths

__________________

Listen to this week’s show and learn:

02:24 Real estate has the best tax shelters.

06:01 Venice, Italy.

10:02 Don’t cheat on your taxes.

11:03 Investing in cash-flowing Chicagoland and Tampa Bay.

14:56 “Read my lips. No new taxes.”

16:29 Kristin Tate interview begins.

19:10 Stealthy taxes.

20:50 Once citizens pay a new tax, they get used to paying it.

22:20 Housing, transportation, utility taxes.

28:03 Your tax revenue often goes to a “general fund”, not where it “should”.

36:19 Graduated vs. Regressive tax.

42:13 Sin taxes.

45:27 What you can do.

49:11 Famous quotes about taxes.

Resources mentioned:

Book: “How Do I Tax Thee?”

KristinBTate.com

GetRichEducation.com/Chicago

GetRichEducation.com/Tampa

Mortgage Loans: RidgeLendingGroup.com

Cash Flow Banking: ProducersWealth.com

Turnkey RE: NoradaRealEstate.com

QRP: TotalControlFinancial.com

Find Properties: GREturnkey.com

GRE Book: GetRichEducation.com/Book

Direct download: GREepisode209_.mp3
Category:general -- posted at: 4:00am EDT

#208: With a $55,000 annual contribution limit, the QRP gives you checkbook control of your IRA.

You can invest your retirement money in nearly anything.

Retirees are suffering with 401(k)s and IRAs. QRPs provide a better way. Damion Lupo tells us how.

QRPs avoid the UBIT tax. Self-directed IRAs do not.

Learn more from Total Control Financial by texting “QRP” (ALL CAPS) to 72000.

QRP stands for Qualified Retirement Plan.

You can invest in nearly anything with your retirement funds, get a $50,000 line of credit, and creditor protection.

With Self-Directed IRAs, you might have to pay tax on leveraged gains; QRPs are exempt.

With QRPs, you can invest in residential property, metals, cryptocurrency, options, tax liens, notes, vacant land, mobile home parks, more.

You can set up a QRP with less red tape than a Self-Directed IRA.

__________________

Want more wealth?

1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2) Actionable turnkey real estate investing opportunity: GREturnkey.com

3) Read my best-selling paperback: getbook.at/7moneymyths

__________________

Listen to this week’s show and learn:

02:51 Pensions replaced with Defined Contribution Plans. Retirees suffer.

06:25 Gold and silver.

10:52 I make a simple break down of 401(k)s and IRAs.

13:58 Damion reminds you: don’t plan to be poor.

15:26 UBIT is ugly. QRPs avoid it.

17:34 QRP’s $50,000 line of credit.

21:55 What can you invest QRPs in? Nearly anything.

26:35 Creditor protection.

28:26 $55K annual contribution limit for single; $110K for married couples.

31:31 Custodian, trustee.

34:34 Less red tape than a SDIRA.

39:17 Get Rich Education perspective on the QRP.

Resources mentioned:

Text message QRP (ALL CAPS) to 72000

New Orleans Investment Conference

Mortgage Loans: RidgeLendingGroup.com

Cash Flow Banking: ProducersWealth.com

Turnkey RE: NoradaRealEstate.com

QRP: TotalControlFinancial.com

Find Properties: GREturnkey.com

GRE Book: GetRichEducation.com/Book

Direct download: GREepisode208_.mp3
Category:general -- posted at: 4:00am EDT

#207: I am a spender. Our guest is a saver. Spenders defer financial wealth. Savers defer quality of life.

This interview takes a sweeping turn when our guest tells us he’s “very frugal”, because I’m not.

Hear my “The Spender vs. The Saver” commentary in the last ten minutes of the show.

The creator of one of the world’s most successful real estate investing apps, Anton Ivanov and the DealCheck app, joins us today.

I’ve used myself. It’s great, and free. For 25% off the optional premium upgrade, use Discount Code GRE25OFF.

From his San Diego homebase, Anton has grown his nationwide portfolio to 35 units and $11K of monthly cash flow.

He owns in Kansas City, Birmingham, and Atlanta.

The Spender vs. The Saver: there is no right or wrong. This is why it is called PERSONAL finance.

__________________

Want more wealth?

1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2) Actionable turnkey real estate investing opportunity: GREturnkey.com

3) Read my best-selling paperback: getbook.at/7moneymyths

__________________

Listen to this week’s show and learn:

02:05 Infographic: 5 Ways Real Estate Investors Get Paid.

04:43 Anton Ivanov’s investor story: duplex, turnkeys, apartments.

19:35 The Spender vs. Saver.

31:18 DealCheck phone app: analyze cash flow, cap rate, CCR, etc. Integrates with MLS. It’s free.

For 25% off a premium upgrade, use Discount Code GRE25OFF

39:21 My commentary: The Spender vs. The Saver.

Resources mentioned:

DealCheck app: Code GRE25OFF

Mortgage Loans: RidgeLendingGroup.com

Cash Flow Banking: ProducersWealth.com

Turnkey RE: NoradaRealEstate.com

QRP: TotalControlFinancial.com

Find Properties: GREturnkey.com

GRE Book: GetRichEducation.com/Book

Direct download: GREepisode207_.mp3
Category:general -- posted at: 4:00am EDT

#206: Student loan debt vs. real estate investing. Where should you devote your dollars? You get answers.

I tell you how to eliminate investing “uncertainty”.

The “BRRRR” real estate investing strategy is discussed - pros and cons. It’s a hybrid between flipping and buy-and-hold.

Turnkey vs. BRRRR real estate investing.

I cover the history of mortgages from the 1930s to today. FDR and World War II had substantial impact.

Fannie Mae was born in 1938. Freddie Mac didn’t begin tracking mortgage rates until 1971.

2000 was the last year that mortgage rates (30-year FRMs) exceeded 8%.

The median 30-year mortgage rate since 1971 is 7.7%.

Let’s meet in-person at the New Orleans Investment Conference.

__________________

Want more wealth?

1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2) Actionable turnkey real estate investing opportunity: GREturnkey.com

3) Read my best-selling paperback: getbook.at/7moneymyths

__________________

Listen to this week’s show and learn:

02:13 Student loan debt vs. real estate investing.

07:53 The BRRRR Strategy: pros and cons.

17:00 Turnkey vs. BRRRR real estate investing.

19:44 History of mortgages: 1930s to today.

26:33 The median 30-year mortgage rate since 1971 is 7.7%.

28:56 Let’s meet in-person at the New Orleans Investment Conference.

Resources Mentioned:

New Orleans Investment Conference

Mortgage Loans: RidgeLendingGroup.com

Cash Flow Banking: ProducersWealth.com

Turnkey RE: NoradaRealEstate.com

QRP: TotalControlFinancial.com

Find Properties: GREturnkey.com

GRE Book: GetRichEducation.com/Book

Direct download: GREepisode206_.mp3
Category:general -- posted at: 4:00am EDT

#205: A dollar is not money. Money serves three purposes. It is a:

  #1: Medium Of Exchange

  #2: Unit Of Account

  #3: Store Of Value

There is an opportunity for you to invest in cash-flowing real estate in Cleveland (link).

After discussing the roles of money, currency, and real assets, we discuss the Cleveland, Ohio real estate investing market.

Generally, if a place is too desirable to live in, it is a bad place to invest in long-term rental real estate for cash flow. But it must be attractive enough to retain residents.

Cities must reinvent themselves when manufacturing wanes. Cleveland has doubled-down on medical technology and has become a world leader in health care.

Eight Fortune 500 companies are headquartered here. The Cleveland Clinic is a world health care leader.

Neighborhood selection, pockets for long-term appreciation and cash flow discussed.

Typical in Cleveland: 3 BR / 2 BA, $700 - $1,000 rent, $80,000 price, 2% property tax.

This provider: financing-friendly, in-house management, guarantees, annual inspection, give tours.

__________________

Want more wealth?

1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2) Actionable turnkey real estate investing opportunity: GREturnkey.com

3) Read my best-selling paperback: getbook.at/7moneymyths

__________________

Listen to this week’s show and learn:

02:06 Money and currency roles.

04:08 Real assets.

05:53 “Too desirable” to live in a place.

10:18 Medical and technology replaces manufacturing.

11:00 Why companies are spending more to renovate homes.

16:24 Cleveland culture.

19:12 Fortune 500 companies - eight headquartered in Cleveland.

21:49 Forbes named Cleveland the top cash-flowing rental market.

24:22 Why SFHs?

29:58 Typical: 3 BR / 2 BA, $700 - $1,000 rent, 2% property tax.

32:04 Provider, financing-friendly, in-house management, guarantee, annual inspection.

35:45 Interested? Get the investing report at www.GetRichEducation.com/Cleveland.

Resources Mentioned:

GetRichEducation.com/Cleveland

The Real Estate Guys

Mortgage Loans: RidgeLendingGroup.com

Cash Flow Banking: ProducersWealth.com

Turnkey RE: NoradaRealEstate.com

QRP: TotalControlFinancial.com

Find Properties: GREturnkey.com

GRE Book: GetRichEducation.com/Book

Direct download: GREepisode205_.mp3
Category:general -- posted at: 4:00am EDT

#204: Your real estate ROI could be a billion dollars.

Even if your property never appreciates nor pays you the other four ways, I discuss a little-considered way where you’re STILL profiting.

Real estate price and value are different.

“Return ON Equity” vs. “Return FROM Equity” discussed.

Are you leveraging appreciation or leveraging inflation?

Inflation assists leveraged real estate investors 3 ways: asset inflation, debt debasement, and higher cash flows.

Real estate flipping vs. investing is discussed with Matt Theriault.

Matt and I discuss the mindsets around passive income vs. active income.

The importance of markets and teams.

__________________

Want more wealth?

1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2) Actionable turnkey real estate investing opportunity: GREturnkey.com

3) Read my best-selling paperback: getbook.at/7moneymyths

__________________

Listen to this week’s show and learn:

02:13 Your ROI.

03:54 If your property never appreciates or pays you, here’s how you profit.

07:08 Leveraging inflation, not appreciation.

13:10 Cleveland cash-flowing property.

15:33 Matt Theriault joins us.

22:25 Retirement. Piles vs. streams of income.

29:12 Flipping vs. Investing.

31:08 Markets and teams.

35:42 You must act.

Resources Mentioned:

Warren Buffett Quote

Matt Theriault Website

Cleveland Turnkey Real Estate

Mortgage Loans: RidgeLendingGroup.com

Cash Flow Banking: ProducersWealth.com

Turnkey RE: NoradaRealEstate.com

QRP: TotalControlFinancial.com

Find Properties: GREturnkey.com

GRE Book: GetRichEducation.com/Book

Direct download: GREepisode204_1.mp3
Category:general -- posted at: 4:00am EDT

#203: Doctors’ debt is $200K-$600K+ after medical school. Should they pay it off or invest in real estate instead?

Most view doctors as “successful” - they help people and earn more than most.

Dr. Buck Joffrey joins us. Are doctors “too academic” to be concerned with investing? They miss out.

Get his great Wealth Formula Roadmap Course.

Young doctors often ask veteran doctors what to do with their money. They get referred to a typical financial advisor.

“The Rule Of 72” is misleading. Mutual fund investors often make zero return.

It is impossible to build substantial wealth without (good) debt. That is, debt that’s outsourced to others, like tenants.

I give a concrete example of how debt creates wealth for you with a $1M building where you make a small down payment.

Inflation dilutes the weight of your debt.

Wealth Formula = Mass x Velocity x Debt

Dr. Joffrey’s first apartment building was bought based on “a promise” - a pro forma on a Class D building. It was awful.

_______________

Want more wealth?

1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2) Actionable turnkey real estate investing opportunity: GREturnkey.com

3) Read my best-selling paperback: getbook.at/7moneymyths

_______________

Listen to this week’s show and learn:

02:10 My chat with a new medical doctor and his $450K debt.

06:00 Dr. Buck Joffrey interview begins.

09:05 Are doctors “too academic” to be concerned with investing? They miss out.

12:15 When you have a Dad that’s in real estate investing.

14:35 “The Rule Of 72”.

16:43 Flawed conventional wisdom.

20:00 Debt.

24:58 Inflation-profiting from debt.

28:39 The mathematical wealth formula.

30:13 Dr. Joffrey’s first apartment building was a loser.

31:50 Wealth Formula podcast.

33:47 Dr. Buck Joffrey’s video course: Wealth Formula Roadmap.

Resources Mentioned:

Video Course: Wealth Formula Roadmap

Book: Cashflow Quadrant

Mortgage Loans: RidgeLendingGroup.com

Cash Flow Banking: ProducersWealth.com

Turnkey RE: NoradaRealEstate.com

QRP: TotalControlFinancial.com

Find Properties: GREturnkey.com

GRE Book: GetRichEducation.com/Book

Direct download: GREepisode203_1.mp3
Category:general -- posted at: 4:00am EDT

#202: $108,000 was my highest salary from my day job. I discuss.

There’s high housing demand and low supply. Then why are homebuilders slowing down? You get answers.

SFHs comprise 30-35% of all U.S. rentals. 90% of rental SFHs are owned by “mom & pops”.

Learn how to exploit real estate’s geographic arbitrage.

How are you living? Metaphorically, are you using water buckets or a sprinkler system?

Meet me in-person at the New Orleans Investment Conference, Nov. 1st to 4th.

I made an infographic to send you: “The 5 Ways Real Estate Investors Get Paid”.

_______________

Want more wealth?

1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2) Actionable turnkey real estate investing opportunity: GREturnkey.com

3) Read my best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

02:12 Supply vs. Demand and “Capacity To Pay”.

03:59 Homebuilding slowdown.

10:40 SFHs comprise 30-35% of all rentals. 90% of rental SFHs are owned by “mom & pops”.

13:02 Geographic arbitrage.

16:39 Water Buckets vs. Sprinkler Systems.

19:06 Security vs. Freedom.

23:48 Meet me in-person in at the New Orleans Investment Conference, Nov. 1 - 4th:  https://goldnewsletter.com/wp-content/uploads/2018/07/NOIC_2018_GRE.html

27:32 Infographic: “5 Ways Real Estate Investors Get Paid.”

Resources Mentioned:

Reuters: Home Sales Sag, Prices Rise

Meet Me In New Orleans, Nov. 1st - 4th

Book: “How To Be In The Top 1%”

Mortgage Loans: RidgeLendingGroup.com

Cash Flow Banking: ProducersWealth.com

Turnkey RE: NoradaRealEstate.com

QRP: TotalControlFinancial.com

Find Properties: GREturnkey.com

GRE Book: GetRichEducation.com/Book

Direct download: GREepisode202_2.mp3
Category:general -- posted at: 4:00am EDT

#201: Your down payment, credit score, reserves, debt-to-income ratio necessary for an income property loan are discussed.

Ridge Lending Group President and CEO, Caeli Ridge, also tells you 15% of appraisals come in low, 80% right on, and 5% above the contract sale price.

Can a bank call your mortgage loan payment due-in-full anytime? Short answer is “no”. We discuss.

Learn some good options after your first 10 loans (single) or 20 (married) are exhausted.

We discuss the effect of higher mortgage interest rates on your cash flow.

HELOC interest is not always tax deductible. Be mindful that Trump doubled the standard tax deduction threshold.

_______________

Want more wealth?

1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2) Actionable turnkey real estate investing opportunity: GREturnkey.com

3) Read my best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

02:58 Receiving sale price discounts for paying cash rather than financing property.

08:48 Two sets of underwriting guidelines: loan spots 1-6, loan spots 7-10.

18:40 Can a bank call your loan due-in-full anytime?

22:50 Max. LTVs on cash-out refis.

26:56 Portfolio financing beyond ten loans: 6.375% interest rate.

31:00 Higher interest rates than last year.

33:27 Appraisals.

36:26 Underwriting guidelines: too loose or too tight today?

39:15 Phone 855-74-RIDGE | www.RidgeLendingGroup.com | info@ridgelendinggroup.com

40:23 HELOCs on income property: difficult to find, 65% LTV.

41:27 Tax-deductible interest, standard deduction threshold.

Resources Mentioned:

Mortgage Loans: RidgeLendingGroup.com

Cash Flow Banking: ProducersWealth.com

Turnkey RE: NoradaRealEstate.com

QRP: TotalControlFinancial.com

Find Properties: GREturnkey.com

GRE Book: GetRichEducation.com/Book

Direct download: GREepisode201_1.mp3
Category:general -- posted at: 4:00am EDT

#200: Discover your “why” in life and real estate.

You should have a selfish why and an altruistic why in real estate investing.

I summarize today’s economy and asset values: GDP growth, real estate, stocks, interest rates, cryptocurrency, oil, dollar, precious metals, The Fed.

As a Forbes writer, I’m going on offense, not defense.

You hear the audio clip: “7 Minutes To A Wealthy Mindset”.

Enjoy this milestone 200th Episode - the Bicentennial Installment of GRE!

_______________

Want more wealth?

1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2) Actionable turnkey real estate investing opportunity: GREturnkey.com

3) Read my best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

00:52 Up and down market cycles.

02:02 You live a great life.

04:33 Your “why”.

10:02 Why I’ll never paint a wall or mow a lawn again.

14:58 Programming changes.

16:07 Today’s economy, GDP, asset values.

25:12 At Forbes, I’m going on offense, not defense.

26:52 Audio clip: “7 Minutes To A Wealthy Mindset” video.

Resources Mentioned:

Videos: GetRichEducation.tv

My Forbes article: Home Equity

Mortgage Loans: RidgeLendingGroup.com

Cash Flow Banking: ProducersWealth.com

Apartment Investor Mastery: BradSumrok.com

Turnkey RE: NoradaRealEstate.com

Find Properties: GREturnkey.com

GRE Book: GetRichEducation.com/Book

Education: GetRichEducation.com

Direct download: GREepisode200_1.mp3
Category:general -- posted at: 4:00am EDT

#199: He thought this show was dumb, debt was bad.

He originally listened to laugh rather than for financial education.

In 2009, Get Rich Education (GRE) listener Dustin Jones suffered a personal bankruptcy as a result of high real estate commercial debt tied to properties with declining value.

His goal was to be debt-free by age 40.

In 2015, that all changed when he began listening to Get Rich Education.

He learned that financially-free beats debt-free.

Now Dustin embraces debt again by strategically turning equity into cash flow.

He has $781,000 in debt, and hopes to have $1.1M to $1.2M by year-end. Isn’t that counterintuitive?

It’s a fascinating story of tragedy, resilience, learning, strength, and self-belief with remarkable Michigan-based GRE listener Dustin Jones.

_______________

Want more wealth?

1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2) Actionable turnkey real estate investing opportunity: GREturnkey.com

3) Read my best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

03:47 Building a real estate portfolio in Flint, MI.

05:48 Declining property values and rent incomes.

08:46 Bankruptcies.

09:36 Calling notes due generally doesn’t happen on performing, residential loans.

12:52 Dustin thought debt was dumb.

13:56 Finding GRE in 2015 and laughing at how it first sounded like nonsense.

19:00 Applying abundant concepts.

21:33 Buying 5 properties in Houston, Memphis, and Montgomery. $1,250 cash flow.

25:46 Dustin’s other investments.

27:47 Pitfalls with providers, inspections.

32:28 Meet Dustin and I in-person Sept. 6th to 9th! Learn more at: www.GetRichEducation.com/Belize.

Resources Mentioned:

Dustin’s e-mail: delk25@gmail.com

Mortgage Loans: RidgeLendingGroup.com

Cash Flow Banking: ProducersWealth.com

Apartment Investor Mastery: BradSumrok.com

Turnkey RE: NoradaRealEstate.com

Find Properties: GREturnkey.com

GRE Book: GetRichEducation.com/Book

Education: GetRichEducation.com

Direct download: GREepisode199_1.mp3
Category:general -- posted at: 4:00am EDT

#198: The five ways real estate pays you, your monthly cash flow and using HELOCs are three listener questions that I answer today.

Home inventory is so low that machine learning and artificial intelligence are being used to predict when someone is likely to sell.

ATTOM Data’s Daren Blomquist tells us where today’s housing values are compared to pre-recession peaks.

Want more wealth?

1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2) Actionable turnkey real estate investing opportunity: GREturnkey.com

3) Read my best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

00:57 How would $1,500 monthly cash flow help me?

04:00 The “5 Ways” real estate pays you.

06:40 HELOCs.

26:16 Daren Blomquist interview begins.

29:00 Machine learning, artificial intelligence in real estate.

35:00 Higher mortgage interest rates = higher home prices.

38:18 National median housing prices vs. “pre-crash” highs.

40:30 Housing values in “stable” markets.

43:38 Get Rich Education TV.

Resources Mentioned:

www.attomdata.com

Get Rich Education TV: GetRichEducation.tv

Mortgage Loans: RidgeLendingGroup.com

Cash Flow Banking: ProducersWealth.com

Apartment Investor Mastery: BradSumrok.com

Turnkey RE: NoradaRealEstate.com

Find Properties: GREturnkey.com

GRE Book: GetRichEducation.com/Book

Education: GetRichEducation.com

 

Hey, welcome in to Get Rich Education, Episode 198. I’m your host Keith Weinhold and I’m going to answer a few listener questions today…

...about your cash flow, your total rate of return, and finally, Home Equity Lines Of Credit. Then we’re going to have one of the top real estate trend trackers in the nation join us here later.

Let’s get right into it. Ellis from Gastonia, North Carolina asks,

“Keith, Episode 188 had a great breakdown of how run you all of the numbers on an income property. The thing I’m wondering about is that your example only resulted in a positive cash flow of $150 on that property.

With the maximum of 10 conforming loans that we can get, that’s only $1,500 in monthly cash flow. How would that be enough for us to leave our job?” Thanks, Ellis.

And, of course, not everyone that listens here wants to have their passive real estate income replace their passive job income. Though many do.

...and it’s not a get rich quick thing...it’s about incrementally building up durable cash flow streams over years.

Well, Ellis, and I’m not sure how many shows you’ve listened to.

That example of the $150 cash flow was just for one SFH - and really for one of the lower-cost ones - the purchase price on that was 70-some thousand dollars. It was in Memphis.

So most of the income properties you buy will have a higher purchase price, higher figures, and often a higher cash flow.

Really, $1,500 with ten properties would be about as low as a projected number could possibly get.

So Ellis, if you’re married, both you and your spouse - you each qualify for 10 one-to-four unit properties...20 total and BTW…

...you want to put those in your individual names. If both you and your wife were on the loan, that would count as a strike against each of your limit of 10, so as you buy, alternate back-and-forth - you own the first one, she owns the second, you own the third, and so on, or something like that.

So that’s 20 doors minimum there - or I guess 19 since your primary residence is part of that formula, plus if you have some duplexes or four-plexes in there, that might be 25 or 30 or 40 doors.

So, there’s so many reasons why you would likely have substantially more than $1,500 in passive monthly cash flow.

Then there are financing programs beyond conventional ones, you might also have some 5+ unit apartment buildings, some agricultural parcels or a mobile home community, or maybe you even got a couple low-cost properties paid-off and don’t think it’s worth getting a loan for tiny amounts, so they produce cash flow although there’s no loan there…

...there are a ton of reasons why it would be way more than $1,500. Thank you for the question, Ellis. 

...And another important thing to remember there is that we’re only talking about cash flow - which is only one of five simultaneous profit centers that you typically have.

But cash flow is a key profit center because it’s the most liquid one.

Jessy from Sacramento, CA says, I love your show. It’s flipped my financial mindset totally upside-down, changed my family’s life, and changed what I thought was possible for us. 

Part of what I love hearing about is that 5 Ways You’re Paid in real estate. Ah - then he (or she?) shows me an example here in the question of 30% for leveraged appreciation + 6% cash flow , 5% loan paydown, 4% tax benefits, 3% inflation-hedging = a total return of 48%.

 

Yes, those are the five ways that real estate investors often have as profit centers.

 

The question Jessy asks about this is: “Though I get my properties from GREturnkey.com and these returns seem about right, I don’t think I’m invested in any one market that performs this way.”

 

OK, I love that question, Jessy. Few individual markets are going to perform just that way.

 

It’s a blended portfolio approach. For example, on your new purchase in Dallas-Fort Worth, you might not have any cash flow any more. It might be cash flow zero. That’s just the way DFW behaves now.

 

But it’s likely that you’ve been achieving better than 6% appreciation there in DFW (and I’m referencing that 6% appreciation at 5:1 leverage as the 30% Jessy gave in the example).

 

Then if you’ve also bought in Memphis, you’re likely achieving less-than-average appreciation - that’s just how many areas in Memphis behave, but you’re getting above-average cash flow.

 

So it’s the blended portfolio approach that can lead to “Year One” returns like what I’ve described with the “Five Ways That You’re Paid”. Multiple markets means you’re more diversified at the same time.

 

One market, however, that’s performed lately with a nearly equal measure of both appreciation and cash flow are some of the Orlando and Tampa Bay submarkets...so some markets will come close - most won’t - they’ll be weighted differently across your five profit centers.

 

Thanks for the question, Jessy.

 

The next question comes from Michael in Astoria, Oregon. Astoria is beautiful. One day, I went to the top of the Astoria column there - it’s a tower overlooking the mouth of the Columbia River.

 

Michael says, “There aren’t any cash flow markets out here on the west coast and we have substantial equity in our $1 million Astoria home.

 

We still owe $504,000 on the loan so it’s about half-paid off.

 

From listening to you and understanding that the Return From Home Equity is always zero, I also know that our leverage ratio has been cut to 2-to-1.

 

What’s the best way of removing our home equity to use for down payments on cash-flowing income property?”  

 

Well, thanks for the question, Michael. First of all, you need to decide for yourself that that’s what you want to do with your home equity.

 

Understand that doing so means that none of your equity is lost - it is merely transferred into multiple properties - and it also can produce a cash flow for you now.

 

Of course, though the return from home equity is always zero, borrowing against your home equity incurs an interest rate expense that you need to beat.

 

I’ve removed equity from my property with a HELOC for buying more investment property...and let’s drill down and unpackage a HELOC here - H.e.l.o.c. - Home Equity Line Of Credit.

 

Let’s talk about why you would use one, how it works, and both your advantages and your risks here, Michael.

 

With a HELOC - if you understand how a CC works, you largely understand how a HELOC works, except your credit limit is based on how much equity you have in your home. You can usually borrow up to an 80% combined LTV ratio.

 

So what’s 80% combined LTV really mean?

 

Now with your home, let’s just round your million-dollar home’s mortgage loan balance to 500K. This means that you could potentially borrow up to $800K total - you’ve already got a $500K lien on the property, meaning you could get a HELOC for another $300K.

 

Yes, with $300K, you could potentially put $30K into ten low-cost income properties in the Midwest and South - down payment & closing costs. Now you’ve spread your risk around because you’re invested in multiple RE markets.

 

Now to qualify for a HELOC, you'll need to document your income and employment status just like you would if you were refinancing your home, Michael.

 

People often use HELOCs for home repairs, sometimes they’re used to pay down higher interest rate CCs. But you can use the funds for anything - a trip to France, a new fishing boat.

 

The HELOC is essentially a second mortgage for you.

 

Like a credit card, homeowners can borrow or draw money on multiple occasions, usually for a period of 5-10 years, and up to a maximum amount - it would be $300K for you in this case, Michael.

 

There are two time phases with a HELOC. The first one is your Draw Period, which typically lasts 5-10 years.

The second one is your Repayment Period - which can last about 10 years, maybe even up to 20 years.

 

Now the first one, your HELOC Draw Period is a really nice time. Now you’ve got access to $300K, and you only need to make interest-only payments on it - which means you have flexibility - you can make principal payments on it if you want, but you only need to pay the interest portion monthly.

 

And your HELOC balance can be very elastic - like a credit card - you could just borrow out $150K on your $300K line right away, make extra principal payments to get it down to $120K after a few months, then months later, run it all the way up to the limit of $300K, and years later pay it back down to “0” again.

 

It’s a pretty great time for you - you’re enjoying what feels like a windfall of cash and you only need to make the interest-only payments.

 

But after this 5-10 year Draw period, the second of your two HELOC time phases begins - your Repayment Period.

 

Now, this can be a real test of how responsible you’ve been with your HELOC funds during your Draw Period - because during this repayment period which can last 10 to 20 years, you must pay both the interest and the principal amount - so your required minimum payment will be higher over all these months until you pay the HELOC balance back down to zero.

 

Usually, the repayment amount is calculated by dividing the capital you’ve accessed - call it $300K here - by the number of months in your repayment period. Simple math here.

 

Now, before you originate your HELOC - beware - occasionally, a lender requires your capital to be fully repaid at the end of your 5-10 Drawdown period all in one lump sum - which is known as a balloon payment.

 

So before you take out a HELOC, just ask your mortgage loan officer about the duration of your Repayment Period once your Draw period ends, ensuring that there’s no balloon due.

 

Now, even if you do have a 10-20 year repayment period, some borrowers still get surprised at the higher payment during the repayment period - but you won’t be - you’ve got to pay both principal and interest there. Your required payment will increase then.

 

Now, here’s a great option for you. Of course once your 5-10 year Draw Period ends, maybe you want to keep your line of credit and extend the draw period.

Many lenders will do this for you, so long as your home still has enough equity and your financial health hasn’t tanked.

Typically, a lender will “pay off” your old line of credit by simply extending you a new one.

Now that you understand Draw Periods and Repayment Periods, let’s talk about your HELOC’s interest rate.

 

HELOCs have substantially lower interest rates than CCs. HELOC interest is often tax deductible - CCs are not.

 

Your interest rate floats. It’s not fixed. HELOC interest rates are tied to Prime Rate or LIBOR plus a margin above that which is based on your credit score.

 

Your upfront HELOC costs low, Michael. A $300K HELOC cost might only be a $1K upfront cost.

 

Now, let’s talk about some risks associated with using your primary residence’s equity for purchasing rental property.

 

If you have a habit of abusing credit, maybe avoid a HELOC altogether.

 

Since a HELOC is secured by your home equity, if you don't repay it, you could end up in foreclosure. The same of which can be said for most any mortgage.

 

Let me tell you about something bad and unforeseen that happened to me with a HELOC in about 2007 or 2008….and by the way, lending guidelines were so loose then that I actually had a 90% LTV HELOC on a non owner-occupied four-plex.

 

If you can believe that!

 

But it’s not like that today, so with your HELOC based on 80% LTV on your primary residence, say, Michael, that you’re in a place during your draw period a couple years down the road and say you’ve borrowed $150K of your $300K HELOC.

 

You’ve got half of it in use.

 

Here’s what happened to me, just using your numbers to stick with your example - I got a notice from the bank telling me, essentially that they froze my HELOC.

 

What did freezing my HELOC mean? It meant that even though I was still in my Draw Period, they wouldn’t let me draw further equity from my home - it was frozen at $150K.

 

Now, they didn’t call the note due or demand any principal payments.

 

I could still make interest-only payments on the $150K, but with no further drawdowns. There was another $150K that remained unutilized.

 

...and why was that? Well, a lot of unprecedented things happened during the Great Recession of 2007 to 2009.

 

Even though the property I owned didn’t fall in value all that much ten years ago, when housing values started turning down nationally 10-12 years ago, many banks said that you can’t make any further draws on your HELOC - we’re freezing it - essentially the banks were saying that we’re worried about the value of your collateral that secures this loan that we made to you.

 

Well, I was disappointed because I still had some open funds to use on my HELOC, but access was shut off for quite a while. That was the HELOC freeze.

 

Now, I could have avoided that had I just taken all the money out of the HELOC and put it in my own liquid bank account. Of course, I would have had to pay interest on a lump that I wasn’t investing too.

 

Let me just add here, that whomever you listen to for finance and real estate investing information and education, listen to someone that been through a downturn.

 

I’ve been successfully investing in real estate directly since 2002, and the housing crisis and mortgage meltdown of 2007 to 2009 was actually good for me - as I’ve discussed on other shows.

 

Now, for you to get a gain - your HELOC interest rate that you’re paying should be the same as, or lower than, the cash-on-cash return of the income property that you’re buying with the HELOC funds.

 

That’s because it’s cash that you service the I/O HELOC payments with - and you’re really keeping an eye on that when your Draw Period comes to an end.

 

Remember that HELOC rates have been rising and they’re poised to keep rising.

 

Now, I already know what you’re thinking. You’re excited about real estate investing and building your portfolio and if you have some equity in your home, you might even be thinking something like:

 

“Even if my income property’s CCR ends up lower than my home’s HELOC interest rate, it’s all going to work out for me because when I consider that the income property pays me 5 ways (of which the CCR is only one of those five), my Total Rate Of Return will dwarf the smaller HELOC interest rate.

 

I know you might be thinking that. And you know what, you might even end up being right and it will work out for you, but now you’re tilting into a riskier area.

 

And you’re going to do whatever you’re going to do….

 

...but the Mortgage Meltdown ten years ago proved to me that liquid cash flow is what services HELOC payments.

 

The other four ways you’re often paid - appreciation, loan paydown paid by the tenant, tax benefits, and inflation-hedging - none of those profit centers are liquid.

 

By the way, and thanks for the question Michael -

 

Now, I’ve had some detractors in the debt-free School Of Thought that won’t even entertain the notion of harvesting equity from their own home and buying rental property with it.

 

But I do it...and I’m not telling you to do it...I’m saying make your own decision. But some even say things like - I bet you won’t like your decision when we have another mortgage meltdown like we did ten years ago.

 

My response is - this way, I’m better positioned in a mortgage meltdown. During the Housing Crisis, some markets even lost 50, even 60% of their housing values.

 

In a meltdown, I’m going to be really happy that I didn’t have a lump of equity all in one property just in one market.

 

Plus, during all that time leading up to a potential future meltdown, I will have had positive cash flow the entire time.

 

I’ve even had a couple people - that just don’t ever seem to want to think abundantly say - well what if things go beyond a recession and we’re in an all-out depression and everyone loses their job and Americans are massively starved for food.

 

Then the person that rents your Kansas City property won’t have their medical job to pay your rent anymore, and the Fedex employee in Memphis that rents your place won’t have a job and your cash flow will dry up.

 

Sheesh, if we’re in an all-out Depression, and the economy breaks down, no one accepts the dollar, and there’s anarchy and mass starvation and looting and Americans don’t even have clean water and everyone’s defaulted on every loan they have, then the fact that you lost the cash flow on your St. Louis rental property is not even going to be one of your Top 20 problems.

 

So...I don’t know what these people are thinking. Now...

 

When you’re running your numbers on a single-family income property that you’re thinking about buying and you get a CCR greater than 10%, you know, these days. I want you to look at that CCR with a magnifying glass.

 

Many markets have prices rising faster than rents that can keep up proportionally. You can still get 10% on a SFH, but not as easily as before.

 

And I still don’t know of a better place to invest right now than SF income property.

 

And I don’t think we’re in any kind of housing “bubble” now.

 

A bubble is defined as a price level unsupported by fundamentals. Today, supply shortage is driving demand.

 

Therefore, it is very much still a fundamental price increase, not a bubble - in these stable inland markets where we buy homes a little below the median housing value.

 

So...know the pros and cons of strategic investment moves like a HELOC origination.

 

Your goal, as a successful investor, is to maximize your ROI throughout your investing lifetime.

 

I frequently sell or refinance properties due to that fact that equity-heavy properties decrease your ROE - your Return On Equity.

 

Financially-free beats debt-free. The debt-free person asks a question like “Where do I think I can be someday?”

 

The financially-free person instead asked themself a better question - what do I have right now to make my & my family’s life better now - what tool do I have that I didn’t even know I had.

 

What knowledge do I have now, what talent do I have now, what property equity do I have now, what relationships do I have now.

 

So...thanks for the listener questions today. I only got to three. There is such a backlog of questions that I’ve got.

 

I wanted to answer three that I felt would be most applicable to the greatest number of people.

 

Well, ATTOM Data’s Senior VP Daren Blomquist is back with us today.

 

  • We’re going to discuss how among homeowners - they’re staying in their homes longer than before - but renters are not included in this - so note that this isn’t a direct measure of transiency.

 

There are so many reasons for why homeowners are staying put longer

 

  • Low interest rates that they locked in years ago often means they don’t want to leave.
  • Mortgage underwriting standards are tougher than they were pre-recession.
  • The supply of replacement properties is low.
  • To a lesser degree - our population aging - the older one gets, the less they move.
  • The supply problem is getting so bad that people increasingly are using data sets of predictive analytics and Artificial Intelligence to tell if someone is about to sell their home.

 

All that’s next, plus where the more undervalued Midwest & South housing markets are for income property today. You’re listening to Get Rich Education.

______________

 

For those figures Daren was using in comparing various metro housing market prices to their pre-recession peaks, those numbers are not adjusted for inflation. Keep that in mind.

 

So if over the last decade we had a cumulative 30% inflation over all those years, then a housing price that’s 30% greater is essentially the same. Very important distinction there.

 

Thanks again to Daren Blomquist.

 

I know that you’re a Get Rich Education listener, but are you a Get Rich Education watcher? Get Rich Education TV is developing.

 

Understand that a lot of changes are taking place there as it’s just evolving.

 

If you want free education, motivation and tutorial videos from me - just go to GetRichEducation.tv for more.

 

Let me know what you think about Get Rich Education TV. Land there directly at  GetRichEducation.tv.

 

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

 

Direct download: GREepisode198_.mp3
Category:general -- posted at: 4:00am EDT

#197: I dislike 401(k)s. They REDUCE your income. Sound investments INCREASE your income.

Most people simply do not realize that there are alternatives to “defined contribution” retirement plans like 401(k)s, 403(b)s, 457s, IRAs, and Canadian RRSPs.

Societal belief systems condition you into “Salary Reduction Plans” - which is, in fact, an early name of the 401(k)!

The man credited as the “Father” and “Inventor” of the 401(k), Ted Benna, joins us today.

He created and gained IRS approval of the first 401(k) savings plan.

Even Ted laments that they should be “blown up”. They are not serving participants in the way they were intended.

Ted & I discuss alternatives to 401(k)s.

Personally, I don’t invest in 401(k)s. Admittedly, I used to, succumbing to poor financial education and societal conditioning.

They’re not designed to begin paying you until between age 59.5 and 70.5. That’s a “life deferral plan” - awful.

Want more wealth?

1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2) Actionable turnkey real estate investing opportunity: GREturnkey.com

3) Read my best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

02:09 What exactly is wrong with a 401(k).

06:45 Replace your “Salary Reduction Plan” with a “Salary Increase Plan”.

08:02 Similar plans like 403(b), 457, IRA, Canadian RRSP.

09:30 Ted Benna Interview begins. 1980 roots.

12:45 Reducing employee wages.

13:37 Benefits and drawbacks of 401(k)s.

18:51 Fees.

25:43 Why 401(k)s should be “blown up”.

32:02 Comparing “Get Rich Education” vs. “401(k)”.

34:44 What does Ted Benna do today?

36:01 My summary.

Resources Mentioned:

Ted Benna’s website: Benna401k.com

Ted’s charity interest: Compassion.com

Mortgage Loans: RidgeLendingGroup.com

Cash Flow Banking: ProducersWealth.com

Apartment Investor Mastery: BradSumrok.com

Turnkey RE: NoradaRealEstate.com

Find Properties: GREturnkey.com

GRE Book: GetRichEducation.com/Book

Education: GetRichEducation.com

 

Direct download: GREepisode197__.mp3
Category:general -- posted at: 4:00am EDT

#196: For under $20,000, you can own deeded agricultural property. It produces cash flow from the crop harvest.

Food is an innate human need. Earth’s population grows by 200,000 people daily.

But arable land has decreased by 1/3rd in just the last forty years!

You can invest in half-acre parcels of coffee and cacao for appreciation and cash flow.

They’re deeded to you.

The parcels are turnkey-managed by an expert team including agronomists, soil scientists, biologists, a value chain analyst, and laborers.

These are higher-grade coffee and cacao varietals - specialty coffee and fine-flavored cacao.

Coffee is the second-most traded commodity in the world (oil is #1).

We discuss the benefits, risks, cash flow, and your projected ROI.

Learn more: see the Coffee and Cacao Investor Reports.

Want more wealth?

1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2) Actionable turnkey real estate investing opportunity: GREturnkey.com

3) Read my best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

01:14 The world needs food. It’s population grows by 200,000 people daily. Arable land decreases.

06:15 Previously, this guest appeared with us on GRE Episodes 28, 60, 125, 157.

07:40 Coffee tree parcels in Panama, cacao tree parcels in Belize.

11:07 Team of farm management pros. Soil science.

18:13 On-site handling adds “single estate” value to beans.

21:16 Who is your end consumer?

27:18 Annual cash flow from annual harvests.

31:20 Trees don’t vacate property. Tenants do.

33:20 11% return plus potential appreciation.

34:00 Half-acre parcels available now: $18,900 coffee, $25,725 cacao.

35:18 Commodity prices.

37:36 Attend a coffee and cacao field trip.

39:37 The world has about 200 nations. How many do you own property in?

43:17 Learn more: see the Coffee and Cacao Investor Reports.

Resources Mentioned:

Coffee Report: GetRichEducation.com/Coffee

Cacao Report: GetRichEducation.com/Cacao

Mortgage Loans: RidgeLendingGroup.com

Cash Flow Banking: ProducersWealth.com

Apartment Investor Mastery: BradSumrok.com

Turnkey RE: NoradaRealEstate.com

Find Properties: GREturnkey.com

GRE Book: GetRichEducation.com/Book

Education: GetRichEducation.com

 

Get Rich Education is brought to you by Ridge Lending Group, Apartment Investor Mastery, Norada Real Estate, and Producers Wealth.

Welcome to GRE. From Toledo, Belize to Toledo, Ohio and across 188 nations worldwide, this is Get Rich Education. I’m Keith Weinhold.

We need to talk about what really could be one of the most important issues of our time today.

Now, we typically talk about providing residential housing in the United States here...and because shelter is an innate human need - and that need is still underserved in a lot of markets today.

Well, when you think about food, shelter, and safety - beginning with food - let’s pull back and look at the global picture.

I know this sounds incomprehensible if you didn’t already know it, but 200,000 more people are here on earth today compared to how many were here yesterday.

Yes, every single day we add 200,000 more people to the planet...and just imagine them all sitting down at a dinner table tonight - and none of them were there are at the world dining table just yesterday.

The earth’s population is expected to swell from 7 & a half billion today, and by the end of the century, we’re expecting more than 11 billion.

So the innate need for human calories isn’t just here to stay, it keeps growing fast...every day.

At the same time, in just the last 40 years, earth has lost 1/3rd of it’s arable land - and that fact alone is unfathomable to some people.

Now, it actually gets even more critical.

Among this growing population and less arable land, humans are consuming more calories on a per capita basis, and as societies develop, they demand a higher quality calorie.

So, needless to say, demand for higher-end and gourmet items is accelerating even faster than those average quality items that we would call generic or commercial-grade.

Well today, we’re talking about agricultural real estate investing - and in two products in particular - coffee, and cacao. Cacao is the base product for chocolate. Both coffee and cacao are produced on small trees in central America.

...and in both cases, it is high grade.

Now, in coffee, the high-grade term is speciality coffee - and it’s become quite sophisticated. In fact, there’s a 100-point coffee grading scale, specialty coffee must score 80 point or higher.

In cacao, the term for the higher-end...I guess...varietals is “fine-flavored” cacao. So rather than a milk chocolate bar, think about those bars with maybe 70% or 80% cacao content that come in a fancy wrapper with some gold-colored foil.

Now, can coffee be considered a food? I’m not really sure. But it sure has demand. When you’d get off a plane at the airport even at the height of the Great Recession a decade ago, you’d still see the long line at the coffee shop…

...and that line wasn’t ANY shorter - even in the face of the worst recession in 70 years...so the demand is durable.

Coffee and cacao have a production advantage because they’re non-perishable products. Just consider the risk in the inherent supply chain difficulty of producing grapes or lima beans - or something that’s going to spoil.

Now, I’m primarily a residential real estate investor - you probably are too - and a lot of my property is in the U.S. On a global scale, there are good deals here. 

Now, on a basic level, I like that housing is real and has a sustainable human demand. Well, those same things can be said for agriculture. 

In fact, agriculture seems like a rather natural thing to invest in - agriculture even predates modern housing.

One interesting distinction, I think, is that your rental housing is typically owned & consumed in the same place. For example, you own a Cleveland, OH rental house and your tenant lives there in Cleveland too - consuming that end product.

But in agriculture, you might own coffee tree parcels in Panama, or cacao tree parcels in Belize, but your end user might be consuming the product in California or the Netherlands.

Now, when it comes to a trusted team, over the last few years here, my relationship with this provider has really grown.

...and you know, it’s interesting with personal relationships or business relationships, they say that “Time will either promote you or expose you.”

….and I think that it’s promoted the provider here - and we’re going to talk about that.

I know that I’ve told you on the air before that I am an investor in this myself. (Talk in-interview that mine has appreciated.)

Today’s guest, the company Founder that provides these agricultural opportunities, was with us here on four prior Episodes #28, #60 which we did from the fringes of the coffee fields in Boquete, Panama, Episode 125, and Episode 157.

It’s been remarkable to see them grow over time and they’ve really exceeded my expectations in both industry influence and the size that they’re growing.

I have visited both places - Boquete, Panama where they grow the coffee and Punta Gorda, Belize where they grow the cacao...and it’s really been fascinating. (give years in interview)

Our guest joins us from Boquete, Panama today...

_______________

 Yeah, it really all starts with a great team there.

When you become a real estate investor, you may very well become a “collector” of real estate, and when you gain the realization that owning your collection in diverse geographies and diverse use types hedges your risk, you start to see how this might fit in.

With this, In one fell swoop, you are an Int’l RE Investor. It’s not a fund. Your name is on the deed...and at the same time, you own producing agricultural land.

The United States is a pretty big, broad place. But as a collector of diverse RE, consider that there are 200 nations in world & it makes increasing sense to be invested in something real in more than just 1 nation out of 200.

Now, you can buy an acre of farmland for less that what David talked about. Of course, you’re not just buying farmland here. You get more than the dirt.

 

You have use and operation of facilities from bean processing facilities to a cupping and grading laboratory and all of the labor and expertise like biologists, agronomists, soil scientists, a Value Chain analyst, farmers and laborers.

 

...and a few years ago, I used to think of the provider as a boutique type of operation. But with they way that they’re adding employees and expertise, I don’t think of them that way anymore.

 

You know, years ago, I thought my first int’l investment might have been in Mexico just because it is closer.

 

But I found that, it’s harder to deal with on many levels...and Mexico is really kind of the opposite of a tax haven, with more onerous tax than the US.

 

You’re probably only 1-2 time zones from Belize & Panama, or you might even be in the same time zone.

 

Now, most people participate in this opportunity...sight unseen...before they see the parcels. I know that a lot of you have visited Panama & Belize and have been on their tours.

 

I really suggest going on one of their educational field trips - they really treat you well with complimentary meals, ground transportation, excursions.

 

...and you can do that whether you’re an investor or not. I bought my parcels more than a year before I ever actually got on the ground and visited them.

 

If you go visit the Panama coffee farms, I suggest setting aside at least two extra days to see Panama City and the Panama Canal if you like. Just such a grand trip that way.

 

You’ll find the weather more pleasant and agreeable once you get up into the highlands - where they grow the coffee - in Boquete where it’s cooler.

 

Now, who would this opportunity NOT be for. It is not for you if you’re devoted to putting every one of your dollars into getting out of the Rat Race in 18 months.

 

Really, any long-term buy-and-hold real estate wouldn’t fit you then...and I think David made that pretty clear.

 

People in their 20s, all the way up to their 70s participate. David mentioned that it’s a legacy investment - some people buy it & put it in their child or grandchild’s name.

 

In fact, I’ve said before that is probably the only real estate I own anywhere - that I have no plans to sell...and I would buy it again. In fact, I might buy more.

 

When you’re thinking about investing, you might as well start from the ground up - literally - that’s just what farming is.

 

Next week, the Investor of the 401(k) Retirement Savings Plan, Ted Benna will be here with us.

 

Then after that we’re going to talk more about today’s rental housing market trends, and later, have an everyday listener like you join us on an upcoming episode - he’s from Michigan - so he can tell us how putting Get Rich Education ideas into practice has changed his life.

 

Well, today with agricultural real estate investing, we probably touched on at least a few things that you found thought-provoking and will want to know more about.

 

We are Get Rich Education, so we’re education-first and if you find the opportunities interesting, then I highly encourage you to check out the coffee and cacao Investor Reports…

 

...at GetRichEducation.com/Coffee or GetRichEducation.com/Chocolate.

 

Until next week, I’m Keith Weinhold. Don’t Quit Your Day Dream!

Direct download: GREepisode196_.mp3
Category:general -- posted at: 4:00am EDT

#195: If I had maxed out a loser 401(k) when I worked a “day job”, you never would have heard my name. I'd still be working.

Learn how to build multiple income streams. The average millionaire has 7 income streams.

Be frugal with your time, not your money.

I discuss the mindset around building passive income to have time freedom in your life.

If you don’t invest in real estate, then how else will you acquire wealth? Options explored.

Be yourself. When you strictly trade your time for dollars, you aren’t being yourself.

When you have more time, it makes you more of what you are.

Kim Butler of Partners For Prosperity joins us. She’s an original Rich Dad Advisor.

She & I discuss retirement, the importance of passive income, and more.

“Financial planning” has an ugly connotation. Kim & I break it down.

We discuss why people keep investing in losing 401(k)s, IRAs, and other “life deferral plans”.

Want more wealth?

1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2) Actionable turnkey real estate investing opportunity: GREturnkey.com

3) Read my best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

00:46 You are an investor.

02:19 Your life’s cash inflows & outflows.

09:16 Be yourself.

13:01 How you benefit when you’re “halfway there”.

18:08 Kim Butler interview begins. “Financial planning” has an ugly connotation.

25:57 Why do people still invest in 401(k)s and IRAs?

28:46 Retirement.

36:04 Why every human is an investor.

39:42 The 7 Principles Of Prosperity: Think-See-Measure-Flow-Control-Move-Multiply.

42:18 Whole Life Insurance.

45:36 Book recommendations.

50:44 If I had maxed out a 401(k), you never would have heard of me.

Resources Mentioned:

Partners4Prosperity.com

Book: The Mystery Of Capital

Mortgage Loans: RidgeLendingGroup.com

Cash Flow Banking: ProducersWealth.com

Apartment Investor Mastery: BradSumrok.com

Find Properties: GREturnkey.com

GRE Book: GetRichEducation.com/Book

Education: GetRichEducation.com

Direct download: GREepisode195_.mp3
Category:general -- posted at: 4:00am EDT

#194: The apartment building space is hot. Unless you’re experienced, you need help from an expert that can help you navigate today’s apartment environment.

Brad Sumrok, “The Apartment King”, joins us today. His apartment building students get results, closing dozens of larger apartment buildings every year.

Brad began with buying a 32-unit building in 2005.

Today, he provides forecasts to the apartment industry, and hosts live training events.

Tens of thousands listen to his every word.

But is it too late to buy apartments today?

Apartment prices keep running up. Cap rates are compressed. Now, interest rates are higher. Brad tells you where to look today.

I ask Brad, “What’s an underlooked apartment market or niche today?” He names exact towns.

Think you can’t afford a $5 million building? Yes, you can. Brad tells you how.

Learn how to outbid others when there are multiple offers for an apartment.

His in-person events draw large, energetic crowds and he fills bus cavalcades with hopeful investors on apartment field trips.

Want more wealth?

1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2) Actionable turnkey real estate investing opportunity: GREturnkey.com

3) Read my best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

01:27 Leveraging rent increases.

04:10 Brad Sumrok Interview begins.

07:28 Is it too late to buy apartments today? Prices are higher.

09:36 Cap rate compression.

10:23 Interest rate rise.

12:06 There’s still a housing shortage.

13:24 What’s an underlooked apartment niche today?

15:23 Value-add buy-and-hold apartments.

19:23 “I can’t afford it.” Yes, you can. Here’s how.

22:38 Carried interest.

24:20 Financing.

26:04 Tenant and property character.

28:05 Multiple offers - how to outbid others.

32:13 Brad’s training events are super-popular. The next one is July 21st-22nd.

Resources Mentioned:

Brad’s Live Event, July 21-22: BradSumrok.com

Mortgage Loans: RidgeLendingGroup.com

Cash Flow Banking: ProducersWealth.com

Apartment Investor Mastery: BradSumrok.com

Find Properties: GREturnkey.com

GRE Book: GetRichEducation.com/Book

Education: GetRichEducation.com

Direct download: GREepisode194_1.mp3
Category:general -- posted at: 6:33am EDT

#193: If you raise the rent, these deadly mistakes will make your tenant move out.

Learn how to effectively raise the rent in a way that makes your tenant stay. Rent escalators.

You learn how to leverage your rent hikes.

I review exactly what to include and exclude from your Notice Of Rent Increase Letter.

Where do I get my investing and real estate information from anyway? I tell you.

ATTOM Data Solutions’ Daren Blomquist reveals the exact city where Amazon is most likely to locate their second headquarters (HQ2) based on their research.

Flipping activity can be predictive of “up-and-coming" neighborhoods.

Want more wealth?

1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2) Actionable turnkey real estate investing opportunity: GREturnkey.com

3) Read my best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

01:42 You can leverage rent raises!

04:21 Mistakes to avoid in rent hikes.

07:01 Steps to raise the rent properly. Rent escalators.

10:36 Notice Of Rent Increase Letter.

15:55 Daren Blomquist Interview begins.

16:42 Amazon HQ2.

23:59 Neighborhood grading.

27:57 Flipping activity can predict "up-and-coming" neighborhoods.

Resources Mentioned:

AttomData.com

Mortgage Loans: RidgeLendingGroup.com

Cash Flow Banking: ProducersWealth.com

Apartment Investor Mastery: BradSumrok.com

Find Properties: GREturnkey.com

GRE Book: GetRichEducation.com/Book

Education: GetRichEducation.com

Direct download: GREepisode193_.mp3
Category:general -- posted at: 6:33am EDT

#192: Your property can be damaged by Rent Control; so can your community. Today, you learn how to avoid it.

You buy, sell, and rent your property at market value. But what happens when an outside force comes in and disrupts your “free market”?

I also tell you about a major tenant problem from one of my own apartment buildings.

To avoid losses, learn what clauses to put in your Lease Agreement.

Want more wealth?

1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2) Actionable turnkey real estate investing opportunity: GREturnkey.com

3) Read my best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

01:30 The Broken Window Fallacy.

06:42 30-year mortgages vs. 15-year mortgages.

07:53 Rent control.

20:21 A flood in my apartment. Renter’s Insurance.

24:33 Security deposit and last month’s rent.

28:10 Resort property with cash flow.

Resources Mentioned:

Keith’s Recommended Reading List

Book: Economics In One Lesson

The Landlord’s Almanac

Placencia, Belize Investor Report

Mortgage Loans: RidgeLendingGroup.com

Cash Flow Banking: ProducersWealth.com

Apartment Investor Mastery: BradSumrok.com

Find Properties: GREturnkey.com

GRE Book: 7 Money Myths

Education: GetRichEducation.com

Direct download: GREepisode192_.mp3
Category:general -- posted at: 6:33am EDT

#191: What makes fourplexes such great wealth creators? Financing and economies of scale.

But there’s one giant pitfall with many fourplexes.

Today’s guest, Steve Olson of the Fourplex Investment Group (FIG) has an elegant solution to the pitfall.

He tells us how to maintain your investment’s value for long-term returns.

You need to safeguard yourself against neighborhood blight to protect your investment’s value.

Want more wealth?

1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2) Actionable turnkey real estate investing opportunity: GREturnkey.com

3) Read my best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

01:30 Fourplexes are the largest building for residential financing.

03:27 Safeguarding against neighborhood blight.

07:00 The FIG: Fourplex Investment Group.

09:09 How to repel neighborhood blight.

14:50 Pro formas.

17:48 Dealing with today’s compressed cap rates.

21:15 Pre-construction.

24:55 Exit strategy.

28:05 Fourplex prices.

32:55 Financing.

36:42 Property management. Valuation, appraisals.

38:54 Duplexes.

41:40 Keith’s analysis of the investment.

Resources Mentioned:

FIG: Fourplex Investment Group

E-mail: solson@fig.us

Mortgage Loans: RidgeLendingGroup.com

Cash Flow Banking: ProducersWealth.com

Apartment Investor Mastery: BradSumrok.com

Find Properties: GREturnkey.com

GRE Book: 7 Money Myths

Education: GetRichEducation.com

Direct download: GREepisode191_.mp3
Category:general -- posted at: 6:33am EDT

#190: Did you think that inflation only makes you poorer?

Learn many simple examples about how inflation makes you wealthy.

Here's a clue: inflation impoverishes savers and enriches debtors.

MacroEconomist Richard Duncan joins us. He predicts the future direction of inflation and interest rates.

Learn the difference between RE appreciation and RE inflation.

Richard tells us why “money printing” no longer equals inflation.

Globalization could be reversed. This pushes inflation higher.

Richard tells you how to act in response to what’s coming.

Richard’s brilliant economic work is at RichardDuncanEconomics.com. Get 50% off a MacroWatch subscription with the Discount Code “GRE”.

Want more wealth?

1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2) Actionable turnkey real estate investing opportunity: GREturnkey.com

3) Read my best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

01:03 I used to ask myself how RE investing could be any good.

02:18 Signs of consumer inflation.

04:05 Simple examples of how inflation makes you wealthy.

07:41 Financial forces you can and cannot control.

11:30 Is some inflation good?

13:40 Appreciation vs. Inflation.

15:16 Why “money printing” no longer equals inflation.

24:20 How globalization could reverse, stoking inflation. Tariffs, trade war.

27:27 Richard tells you how to act in response to what’s coming.

31:06 Richard’s brilliant economic work is at: RichardDuncanEconomics.com. Get 50% off a MacroWatch subscription with the Discount Code “GRE”.

32:32 My summary of Richard’s interview.

Resources Mentioned:

MacroWatch - Use code “GRE” for 50% off

How You Can Profit From Inflation

Inflation Calculator

Cash Flow Banking: ProducersWealth.com

Mortgage Loans: RidgeLendingGroup.com

Apartment Investor Mastery: BradSumrok.com

Find Properties: GREturnkey.com

GRE Book: 7 Money Myths

Education: GetRichEducation.com

Direct download: GRE190_.mp3
Category:general -- posted at: 6:32am EDT

#189: If an income property is so good, why would anyone sell it to you? You get answers.

I tell you how long it took me to quit my day job to replace it with passive income.

Single-family income properties vs. apartment buildings are compared.

Invest in a growing place. Florida keeps growing due to: affordable housing, warmth, coasts, and it’s the only income tax-free state east of the Mississippi River.

The Orlando, Florida area has grown 20%+ in just the last decade.

Turnkey RE investing means that a property is: 1) Already rehabbed.  2) Tenanted. 3) Under Management. 4) Produces income from Day One.

$80-$150K, 36-month avg. tenant duration, 1.8% property tax, rent-to-price ratio ~0.9%.  

Areas north of Orlando work best. Some areas to the south have economies more dependent on fickle tourism.

Learn more about investing in Orlando turnkey property at: GetRichEducation.com/Orlando

Want more wealth?

1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2) Actionable turnkey real estate investing opportunity: GREturnkey.com

3) Read my new, best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

01:14 I discuss how long it took me to quit my day job.

02:51 Single-family income properties vs. apartment buildings.

10:34 Why Florida grows at a phenomenal rate.

16:11 Two incomes doesn’t have to mean “both parents work”.

18:02 Definition of “turnkey”.

19:25 Pros and cons to turnkey RE investing.

22:02 Communication with investors.

24:52 Submarket selection.

26:35 The numbers.

31:24 If the property is so good, why would anyone sell it to you?

33:42 Housing demand far outstrips supply.

36:00 Older tenant demographic in central Florida.

38:16 Bulk and standardized materials.

39:35 Get the Orlando Investor Report at: GetRichEducation.com/Orlando.

Resources Mentioned:

Orlando Property: GetRichEducation.com/Orlando

Cash Flow Banking: ProducersWealth.com

Mortgage Loans: RidgeLendingGroup.com

Apartment Investor Mastery: BradSumrok.com

Find Properties: GREturnkey.com

GRE Book: 7 Money Myths

Education: GetRichEducation.com

Direct download: GREepisode189_2.mp3
Category:general -- posted at: 6:32am EDT

#188: Learn to run the numbers step-by-step on a real income property and determine your ROI on 1502 Merrycrest Drive in Memphis, TN.

We discuss how to create your own economy. It depends on YOU, not the national government or the local economy.

Your income property is merely a widget that secures an income stream.

Many people self-manage and have no margin for professional management. You often get a better return passively than they do actively.

Why pin your hopes on compound interest? Consider compound cash flows.

Inaky Strick joins us to tell you what he’s learned from attending elite live events.

Want more wealth?

1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2) Actionable turnkey real estate investing opportunity: GREturnkey.com

3) Read my new, best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

01:02 How to create your own economy.

05:23 Your income property is merely a widget that secures an income stream.

06:54 We run step-by-step numbers on 1502 Merrycrest Drive, Memphis, TN and determine your cash-on-cash return.

14:14 Real estate math is simple.

15:20 Total ROI calculated with the “5 Ways” you’re paid.

19:52 Why I don’t consider “instant equity” as a sixth way you’re paid.

21:17 Compound cash flows.

25:40 Inaky Strick tells us what he’s learned from attending live investing events.

34:25 How Inaky affords going to all these events.

39:35 Your self-belief.

Resources Mentioned:

InakyStrick.com

MidSouthHomeBuyers.com

Events: GetRichEducation.com/Events

Cash Flow Banking: ProducersWealth.com

Mortgage Loans: RidgeLendingGroup.com

Apartment Investor Mastery: BradSumrok.com

Find Properties: GREturnkey.com

GRE Book: 7 Money Myths

Education: GetRichEducation.com

Direct download: GREepisode188_1.mp3
Category:general -- posted at: 6:32am EDT

#187: A mortgage is a tool. Used responsibly, you can control 5x as much real estate with 20% equity than you can with a paid-off property. Risk is discussed.

If I could, I would want 100-Year Mortgages rather than 30-Year Mortgages on my properties. You’ll learn why.

Graham Parham of Highlands Residential Mortgage joins us. He tell us the latest income property loan requirements today. We discuss conventional loans on 1-4 unit rental properties.

Graham tells us about your Ability To Repay (ATR) factors that mortgage underwriters seek.

We discuss your Debt-To-Income ratio limits, Reserve Requirements, interest rates today, credit scores, paying discount points, 30-year vs. 15-year mortgages, and appraisals.   

Want more wealth?

1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2) Actionable turnkey real estate investing opportunity: GREturnkey.com

3) Read my new, best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

00:57 You can own and control more real estate if you have loans on them.

02:08 What’s the risk of borrowing?

03:26 100-Year Mortgages.

09:24 Qualifying for loans if you don’t have “W-2” income from a day job.

11:57 Loans for foreign buyers that want U.S. income property.

13:18 Ten loans with 20% down.

13:49 Ability To Repay (ATR).

15:52 Debt-To-Income (DTI) ratio example.

16:23 Your reserve requirements.

19:13 Interest rates today.

21:18 A 740 credit score is the highest that can help you.

24:23 Paying discount points.

28:03 ARMs and 30 vs. 15-Year Mortgages.

30:45 Example of one paid-off property vs five with 5:1 leverage.

33:43 Appraisals.

Resources Mentioned:

Graham’s phone: 1-855-326-6802

Graham’s website: TexasInvestorLoans.com

Graham’s resource: InvestorsLoanGuide.com

Cash Flow Banking: ProducersWealth.com

Mortgage Loans: RidgeLendingGroup.com

Apartment Investor Mastery: BradSumrok.com

Find Properties: GREturnkey.com

GRE Book: 7 Money Myths

Education: GetRichEducation.com

Direct download: GREepisode187_.mp3
Category:general -- posted at: 6:32am EDT

#186: You’re paid five ways as a real estate investor. Rich Dad Tax Advisor Tom Wheelwright and I add up those five rates of return and provide you with an estimated Year One ROI.

We discuss how to make trips to visit your turnkey rental property a tax-deductible event.

With the new tax law, taxes are adjusted for “inflation” more often than previously. But CPI isn’t used. It doesn’t keep up with “real” inflation.

Tom is the author of “Tax-Free Wealth”.

Want more wealth?

1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2) Actionable turnkey real estate investing opportunity: GREturnkey.com

3) Read my new, best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

01:00 The Masters Law.

04:39 Belize Investor Tour.

09:10 Tom Wheelwright and I on real estate ROI.

18:55 Real estate depreciation example.

24:34 Making your trip to visit your turnkey property a tax-deductible event.

33:23 Inflation and taxes.

Resources Mentioned:

More About Tom: Wealthability.com

Belize Investor Tour: GetRichEducation.com/Belize

Mortgage Loans: RidgeLendingGroup.com

Cash Flow Banking: ProducersWealth.com

Apartment Investor Mastery: BradSumrok.com

ShadowStats.com

Find Properties: GREturnkey.com

GRE Book: 7 Money Myths

Education: GetRichEducation.com

Direct download: GREepisode186_.mp3
Category:general -- posted at: 6:32am EDT

#185: You learn how to market your property well. You will have more interested renters and buyers, better quality clientele, and more and better offers. Curb appeal, photography discussed.

We discuss what makes a good turnkey RE investing provider, including how some property managers want your tenant to turn over so that they receive more leasing fees!

Today’s guest owns a company that builds and provides new construction turnkey RE, which is why they have available inventory today. (Yes, really: today.) I recently visited their offices.

Many managers don’t want to sign tenants to two and three-year leases because: 1) It’s easier to find tenants that sign one-year leases. 2) Managers get fewer leasing fees. Learn why today’s provider doesn’t do that.

We discuss cash flow, rates of return and appreciation rates in Jacksonville, Florida.

Want more wealth?

1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2) Actionable turnkey real estate investing opportunity: GREturnkey.com

3) Read my new, best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

00:47 A well-marketed property means you have more interested renters and buyers.

03:16 Real estate photography.

08:53 Florida turnkey real estate.

12:30 The strength of the team.

16:23 New construction turnkey.

20:48 Tenant leases of 2 to 3 years duration.

26:46 Why property managers have an incentive to turn over tenancies. 

29:38 Sales price $160K-$200K. Average: $1,350 rent, $180,000 purchase price (0.75% RV ratio).

32:26 Appreciation rates.

35:25 Future of rents and prices.

Resources Mentioned:

New Construction Turnkeys: GetRichEducation.com/Jax

Mortgage Loans: RidgeLendingGroup.com

Cash Flow Banking: ProducersWealth.com

Apartment Investor Mastery: BradSumrok.com

Find Properties: GREturnkey.com

GRE Book: 7 Money Myths

Education: GetRichEducation.com

Direct download: GREepisode185_1.mp3
Category:general -- posted at: 6:31am EDT

#184: Higher interest rates are obviously bad for real estate investors that make new purchases.

Few realize that higher interest rates often translate into HIGHER housing prices. How could that be true? I explain.

MacroWatch’s Richard Duncan joins us. He tells us why interest rates are likely to rise substantially in coming years.

Learn why low inflation pushes down interest rates and why high interest rates cool an economy.

Also learn why the U.S. is now destroying billions of dollars every month, and tariffs’ effect on interest rates.

Want more wealth?

1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2) Actionable turnkey real estate investing opportunity: GREturnkey.com

3) Read my new, best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

02:13 How higher interest rates translate to higher home prices.

10:05 Decades ago, how Richard knew lower interest rates we coming in the early 2000s.

12:23 Why low inflation pushes down interest rates.

13:27 Higher interest rates cool an economy.

15:35 Why long-term interest rates could be pushed substantially higher.

19:06 Quantitative Easing ended. Quantitative Tightening has begun.

21:58 Tariffs and the looming “Trade War”.

25:16 Reversing globalization can increase inflation and interest rates.

26:26 Why fixed-rate mortgages are better than adjustables.

Resources Mentioned:

MacroWatch: RichardDuncanEconomics.com

Article: Higher Interest Rates Mean Higher Home Prices

Mortgage Loans: RidgeLendingGroup.com

Cash Flow Banking: ValhallaWealth.com

Apartment Investor Mastery: BradSumrok.com

Find Properties: GREturnkey.com

GRE Book: 7 Money Myths

Education: GetRichEducation.com

MortgageNewsDaily.com

Direct download: GREepisode184_.mp3
Category:general -- posted at: 6:31am EDT

#183: There is an asset type where you can get both cash flow and have the peaceable enjoyment of the premises yourself.

Most people regret buying vacation property because they’ve either found that: 1) They don’t use it often. 2) They’re managing it as a rental to others. 3) They bought a timeshare.

Imagine being able to buy tropical beach property in Placencia, Belize: it’s closer to most of the U.S. than Hawaii, with warmer water than Hawaii, and at low prices like Hawaii had decades ago.

Buy vacation property that provides you with monthly cash flow, is in an up-and-coming place, and is turnkey-managed.

Sometimes you must ask: “What’s my Return On Life?”

Want more wealth?

1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2) Actionable turnkey real estate investing opportunity: GREturnkey.com

3) Read my new, best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

03:46 One special world place with enormous opportunity.

06:39 Trends and indicators of new real estate development.

09:11 Placencia, Belize.

13:42 Infrastructure, existing development, geography, amenities.

18:10 Property construction on tropical islands.

20:09 Utilities.

22:44 Turnkey-management detail.

27:10 Safety and security.

29:10 Minimum investment is $50K.

32:05 Investor tour.

38:23 Cave tubing, waterfall, beaches, community, islands

40:58 Book a tour & meet me. I’ll be there July 20th to 23rd, and again Sept. 6th To 9th, 2018. Get started at www.GetRichEducation/Belize.

Resources Mentioned:

GetRichEducation.com/Belize

Mortgage Loans: RidgeLendingGroup.com

Cash Flow Banking: ValhallaWealth.com

Apartment Investor Mastery: BradSumrok.com

Find Properties: GREturnkey.com

GRE Book: 7 Money Myths

Education: GetRichEducation.com

Direct download: GREepisode183_1.mp3
Category:general -- posted at: 6:31am EDT

#182: Using your home as an ATM or credit card? Is this irresponsible?

A listener and I discuss the risks and rewards of using a Home Equity Line Of Credit (HELOC) to cash out your home equity for use in income property investing.

Our guest is a Get Rich Education listener and Grammy-Nominated Music Producer Blake La Grange of San Diego, CA.

Most people settle for “Maybe someday.” Instead, optimize what you have now. Use leverage, debt and equity, and arbitrage to your advantage.

Blake & his wife played the speculative property appreciation game well. Their $585,000 home soon appraised for $700,000+. This provided equity for them to transfer into income property.

Want more wealth?

1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2)    Actionable turnkey real estate investing opportunity: GREturnkey.com

3)    Read my new, best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

[02:44]  Meet Blake La Grange, San Diego-based GRE listener and Music Producer.  

[04:45]  Blake’s mindset change from debt-free to financially-free.

[11:24]  Blake & his wife’s first home cost $585,000.

[15:11]  Private Mortgage Insurance.

[17:17]  $700,000+ home appraisal.

[20:08]  Home Equity Line Of Credit (HELOC).

[27:54]  Listening to GRE “like crazy”.

[31:06]  Blake and turnkey real estate in Birmingham and Memphis.

[38:27]  Pay off rentals or keep exchanging?

[40:22]  Going from owning zero properties to one is most difficult.

[45:22]  Even if your mortgage balance is zero, you still have housing payments.

Resources Mentioned:

Guest’s website: BlakeLaGrange.com

Guest’s e-mail: blake.lagrange@gmail.com

How To Turn $100K Into $300K In Five Years

Mortgage Loans: RidgeLendingGroup.com

Cash Flow Banking: ValhallaWealth.com

Apartment Investor Mastery: BradSumrok.com

Find Properties: GREturnkey.com

GRE Book: 7 Money Myths

Education: GetRichEducation.com

Direct download: GREepisode182_.mp3
Category:general -- posted at: 6:31am EDT

#181: Learn how to permanently reduce your taxes.

At a W-2 job: the government gets paid first, Wall Street second, and you’re third.

I recite “A Tale Of Two Real Estate Markets”. This story will shift your thought paradigm and make your jaw drop.

Tom Wheelwright & I discuss income tax and capital gains tax - rates, history, and strategy so you legally pay the lowest possible rates.

Learn why house flippers pay higher tax rates than buy-and-hold real estate investors.

Where will tax rates be in the long-term future? Tom discusses.

Want more wealth?

1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2)    Actionable turnkey real estate investing opportunity: GREturnkey.com

3)    Read my new, best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

01:02  “A Tale Of Two Markets”.

13:10  At a W-2 job: the government gets paid first, Wall Street second, you third.

14:05  Income tax, Social Security tax.

30:13  Capital gains tax.

36:48  Thoughts about where future tax rates will be.

Resources Mentioned:

Wealthability.com

BLS Unemployment Data

Mortgage Loans: RidgeLendingGroup.com

Cash Flow Banking: ValhallaWealth.com

Apartment Investor Mastery: BradSumrok.com

Find Properties: GREturnkey.com

GRE Book: 7 Money Myths

Education: GetRichEducation.com

Direct download: GREepisode181_1.mp3
Category:general -- posted at: 6:31am EDT

#180: Stop looking at properties. (What?) I discuss.

Are you in real estate for appreciation, cash flow, or something else?

If you focus on cash flow, does that mean less appreciation, and vice versa?

We discuss when a market becomes "too hot to buy for cash flow” any longer.

The Midwest has more affordable property and better cash flow but less recession resilience.

Dallas-Fort Worth keeps showing appreciation potential, but cash flow is drying up.

When a market heats up, rents don’t “keep up” proportionally to a property’s market value.

We also discuss low appraisals. Appraisals are what the bank uses to verify the quality of their collateral.

Want more wealth?

1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2)    Actionable turnkey real estate investing opportunity: GREturnkey.com

3)    Read my new, best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

00:54  Stop looking at properties. (What?)

03:36  The importance of cash flow, appreciation.

07:07  The Midwest: more affordable housing, better cash flow, but less recession resilience.

08:52  Dallas-Fort Worth’s appreciation.

11:00  When a market becomes too hot.

14:48  “Lump Sum Cash Flow” defined.

16:23  With 5:1 leverage and 6% appreciation, $100K becomes $300K in five years.

18:22  Blended portfolio.

21:10  Median rent income vs. median housing value.

25:17  Why low appraisals can occur.

Resources Mentioned:

Dallas property: GetRichEducation.com/Dallas

Kansas City property: GetRichEducation.com/KC

St. Louis property: GetRichEducation.com/StLouis

GRE Book: 7 Money Myths

Mortgage Loans: RidgeLendingGroup.com

Cash Flow Banking: ValhallaWealth.com

Find Properties: GREturnkey.com

Education: GetRichEducation.com

Direct download: GREepisode180_1.mp3
Category:general -- posted at: 6:30am EDT

#179: Money is an abundant resource. I tell you why.

When you’re looking to move accumulated equity, should you do a: 1) Straight sale. 2) 1031 Tax-Deferred Exchange. 3) Cash-out refinance.

Avoid lazy money.

My personal internet bill is $145, cable $126, phone around $100. Who cares?

You learn how much I like to spend on a hotel.

Uber and Lyft are killing the parking business.

Learn how to estimate rental property operating expenses.

Want more wealth?

1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2)    Actionable turnkey real estate investing opportunity: GREturnkey.com

3)    Read my new, best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

00:52  Wealthy people’s money either starts in RE or ends up in RE.

02:03  Listener question about 1031 Exchange vs. Cash-Out Refinance.

13:20  Lazy money.

15:04  Other podcasts.

16:09  Free book.

19:11  More on Dave Ramsey.

20:26  Why money is an abundant resource.

24:36  “Uber Really Is Killing The Parking Business”.

29:18  Residential real estate is here to stay.

30:07  “Return On Life” and passivity.

32:47  Don’t underestimate rental property expenses.

Resources Mentioned:

Article: Uber Is Killing The Parking Business

GRE Video: Operating Expenses

GRE Book: 7 Money Myths

Podcast: The Real Estate Guys

Podcast: Cashflow Ninja

Podcast: The Real Estate Way

Mortgage Loans: RidgeLendingGroup.com

Cash Flow Banking: ValhallaWealth.com

Find Properties: GREturnkey.com

Education: GetRichEducation.com

Welcome to GRE, Episode 179. I’m your host, Keith Weinhold.

From Saratoga, Australia to Saratoga Springs, New York and across 188 nations world wide.

This is Get Rich Education and we are cultivating a Real Estate Of Mind here.

That is because wealthy people either start out in RE, or wealthy people’s money ends up in real estate. It’s either one or the other.

...and you know, the most important piece of real estate may very well be - that real estate right between your two ears - your mind

We come from an abundantly-minded place here at GRE.

If you want to learn about combining vinegar and water in a bottle because it’s cheaper than Windex. Well, you’re not going to learn about that here.

If you’ve been wearing the same pair of monthly contact lenses for the last two years...then, well, you didn’t learn to do that here either here.

In fact, money itself is an abundant resource, not a scarce one. We’re going to talk more about that today.

We’re going to talk about passive income and define what exactly that means.

We’re also going to talk about how to best increase your velocity of money. Is it by doing a 1031 Tax-Deferred Exchange or a Cash-Out Refinance - with your income property.

Let’s go to the listener question about this.

Listener Jacob Ayers asks: To move equity, should I do a 1031 Tax-Deferred Exchange or a Cash-Out Refinance?

Thank you for that rather eloquently-stated question there, Jacob - and it is a germane time to discuss this. There’s a lot of equity out there that is ripe for harvest because most markets have appreciated a good 7-8 years in a row here.

Really, this is a question about moving equity to keep it working for you. What is the best vehicle for increasing your velocity of money?

Since the return from property equity is always zero, ideally you want to take a big chunk of it and splinter it off into a bunch of little pieces and that way you can leverage more property.

Let’s back up. There are actually three ways for you to move equity should you so choose that it’s right for you.

The first way is to...

Sell Your Property - That way, you can get all of your equity out.

Now, Jacob, you’re a savvy investor so that’s why you probably didn’t even bring that up as one of the ways that you can move equity. Because, of course, the big problem with this is that when you sell an income property.

You could sell your current equity-heavy property and buy another. But the problem with selling is that you'd probably have to pay capital gains tax, which would reduce the equity you have available to re-invest. You’re also going to have to pay depreciation recapture.

Yep, that is all of the depreciation that you wrote off against your taxes every year that you owned the income property will be recaptured off that first income tax return you file after the building sale.

So you might have a nice gain but the tax hit is harsh.

That is, of course, unless you move your equity in the second of three ways and you perform a 1031 Tax-Deferred Exchange.

If you meet the rules of the 1031 Exchange, you can avoid all of the nasty bite of the capital gains tax and all of the depreciation capture. Yes, it can be 100% avoided.

In fact, the Exchange is the best way to move your equity. If you follow the rules and do the exchange properly, you can move 100% of your net equity, tax-free.

Sometimes people point out that exchanging is really tax-deferred, not tax-free.  But, c'mon, the exchange itself, if done correctly, is tax-free.  The capital gain is carried to the next property without being taxed.  Therefore, in real estate, capital gains is a voluntary tax.  

What I mean by that is the gain is not taxed unless the you, the owner, volunteers … by selling the property outright.  

Instead of selling, savvy investors continue to exchange until they die and then your cumulative gains over your entire lifetime - they are forgiven upon your death - and that’s because of the stepped-up basis rules.  

Be sure to ask your good tax manager about the details of the stepped-up basis rules. I’m not going to get into that here. But that’s why it’s effectively tax-free

But whether you call it tax-deferred or tax-free, exchanging is one of the most powerful things in the entire tax code, but it’s very much misunderstood by many accountants, attorneys and real estate agents.

Actually, during my first-ever 1031 Exchange I soon learned that my income property agent had never gone through this before.

Now I devoted an entire episode to the 1031 Exchange here for you a few months ago, so I’m not going to get into all the details and rules again here.

The most important thing that I can tell you, to pull off a 1031 Exchange, is to enlist a 1031 Exchange Qualified intermediary early on - before you even sell the property that you want to sell.

From the time that you sell the equity-heavy property that you want to get rid of, you have 45 days to identify a qualified replacement property, and 180 days to close on that identified replacement property.

...and there are all kinds of rules and limits around how to identify property. But it must be specific. You can’t say that your replacement property is going to be a green duplex in Kansas City. You’ve got to give a specific legal address.

The episode that I completely devoted to he 1031 Exchange topic a few months ago where I discuss the rules and the critical mistakes to avoid, and the deadlines and everything else for you, that is Get Rich Education podcast Episode #143.

So the first way to access equity in a property is to sell it outright, the second way is through the exchange, and the third way that you mentioned, Jacob, is with the cash out refinance.

The problem with the cash-out refinance is that you typically cannot access all of the equity in a property because you are not selling it like you are with the other two methods.

So if you’ve got 50% equity in a property that you want to get rid of, you can get all 50% out with the straight sale or the exchange.

But you might only be able to access 30% of the property value with a cash-out refinance because you might only be able to get an 80% loan-to-value loan. A bank is going to make you keep 20% equity in there as your skin in the game.

The advantage of the cash-out refinance is that you shouldn’t have to pay tax on the equity that you extract because the IRS classifies this as debt. There’s no tax on debt that you’ve originated.

One advantage of the cash-out refi over the 1031 is that the cash-out refi is faster & less stressful. You can move at your own pace.

With a 1031, you’re selling at least one property and buying at least one property, so now you have all these steps - inspection, appraisal, you’ll incur make-ready expenses, and you’ll often be paying an agent commission too.

With a cash-out refi., you typically just have an appraisal - no inspection, no make-ready, and no agent commission.

But a 1031 is typically the best vehicle for moving equity from a “dollars” perspective.

A 1031 is also a better move if you want to sell a “dog” of a property that you can’t seem to keep rented to decent tenants or something, but yet you’ve built equity in the property.

If you own a property that’s been good to you but it’s become too equity heavy, you might be tempted to do a cash-out refi instead of a 1031, but yet if you can replace your nice cash-flowing property with one that cash flows even better, look at the 1031.

When it comes to the cash-out refi, if you think that’s a better choice, remember - and this is especially true if you’re looking to do a cash-out refi of your own home - your primary residence, you can often take out a second mortgage and keep the first mortgage in-place, untouched.

That might be a good option if you still like your first mortgage’s low interest rate or it’s advanced amortization schedule.

A cash-out refi doesn’t mean that you have to restructure every part of the debt on one property. You can keep a first mortgage in-place and see if you qualify for a second.

Just a word of caution on the second mortgage cash-out refi - if your second is a HELOC - home equity line of credit, those HELOC interest rates are not fixed. They float in lockstep with the Federal Funds rate which is expected to increase.

To be safe, you want the CCR from your new purchase to equal or exceed that of the mortgage interest rate on the property that you just took cash out of.

Although I like the 1031 more than the cash-out refi overall, I can think of a couple other disadvantages of the 1031.

With the 1031 Tax-Deferred Exchange, you might experience a degree of stress, much of it having to do with the timing of meeting those 45 and 180 day milestones that I mentioned earlier.

You don’t really want to be on a 3-week vacation to Peru and Ecuador during a 1031.

On the properties that you identified as replacements for moving your equity into them tax-free, something might get slowed down in your ability to buy them that’s out of control, or if you’re looking to 1031 your equity into new construction property and the new construction is going too slowly, that can create some stress.

With the cash-out refi., you’re on your own deadlines, not the 1031 deadlines that the IRS sets for you.

You know another thing - another small disadvantage with the 1031 Exchange that people never think about - and everyone overlooks this. I didn’t really see it coming until I had the ball rolling with my first-ever 1031.

It’s that during that time - those three months or so after you’ve sold your relinquished property and before you’ve closed on your replacement property, you’ve lost cash flow…

...because there’s that gap there - that delayed exchange gap where you don’t own some property for a period of a few months.

I’ve done a 1031 with a substantial chunk of my portfolio, and I had about three months where a major piece of my cash flow was cut off until I closed on the replacements.  

1031s & cash-out refis have definitely been good for me.

I’ve made some mistakes in real estate investing for sure, but having an early awareness of the fact that dead equity isn’t serving me and then actually doing something about it really helped me get me to where I am today.

If you’ve got a lot of equity in a property or a property paid off, you’ve got to realize that your money just got lazy. Not only is it not working for you, you’re paying the opportunity cost of not using it to also leverage other people’s money work for you.

Don’t let your money get lazy.

So when I’ve built up around 35% equity in an income property, that’s when I’m looking forward to moving it. It’s that 35% mark.

With a primary residence, it would be less than 35% because I can pull more out - I can pull out equity up to a higher loan-to-value ratio.

Just think about property that you have 50% equity in. Your leverage ratio is been slashed to 2:1. If you reposition it with 20% down payments on multiple properties, now your leverage ratio is 5:1.

That is just huge, and it’s great as long as you’ve safeguarded controlling your cash flow…

...and we love cash flow - but what has created more wealth for real estate investors is really leveraged appreciation so consider keeping your leverage ratio up there by maintaining small equity positions in a bunch of properties.

You know what else? The more that you learn about the economy, pulling $ out of property and transferring it into another property actually expands credit, that very act expands the money supply, and it stokes inflation…

...and as you know from listening to this show, inflation is actually our friend.

Great question from Jacob - asking about the pros and cons of a 1031 Exchange vs. a cash-out refinance.

By the way, that “Jacob” was “Jacob Ayers” - he is the host of “The Real Estate Way To Wealth And Freedom” podcast. That’s another show that you can listen to.

You know what’s funny - some podcasters don’t want to talk about other podcasts similar to theirs or they’re afraid that they’re going to lose listeners to that other show that they talk about.

Well, I just don’t feel that way - and well, maybe that’s part of my abundance mentality. Of course, I value my listeners and anyone wants more listeners just like an artist would want more people to see what they’ve spend weeks working on - on canvas.

You can check out The Real Estate Guys Radio Show with Robert Helms and Russell Gray. That’s a really good one.

Sheesh, I’ve even got a commercial on my show that tells you about someone else’s podcast - the Cashflow Ninja hosted by my friend M.C. Laubscher. That’s another good show that you can check out. He’s had some great guests on that show like Ron Paul, Robert Kiyosaki, and Jim Rogers.

Once again, Jacob Ayers’ show is called “The Real Estate Way To Wealth And Freedom”.

Uber and autonomous cars are killing the parking lot and that’s going to change real estate. I’m going to discuss that in a bit. I’ve also got some Dave Ramsey fallout from our episode from two weeks ago.

You know, if you want to learn more about the misconceptions around debt and equity - which have been woven into this discussion so far - and how to use debt and equity to your advantage - and in the way that affluent people use them…

...and why getting your money to work for you won’t create wealth and how to get other people’s ethically working for you to create wealth for yourself and a lot more...

I wrote a book less than 9 months ago about how you can do that.

You can get the e-version of my book completely free. Not just a free chapter or something but the complete e-book free...

...Robert Syslo is going to tell you how easy it is to do that now. Go.

________________

Welcome back to Get Rich Education. I’m your host, Keith Weinhold. We got more great feedback on our episode from two weeks ago when we were talking about the largely - really - antiquated Dave Ramsey ‘debt-free’ School Of Thought.

We’re talking about a School Of Thought that has - in the past - suggested that people eat things like cheap processed Ramen noodles - and beans and rice - so that they’ll have more money in their pocket so that they can pay off a car loan or a mortgage loan.

When you pay down debt that’s lower than the rate of inflation, you’ve actually diminished your prosperity now.

So now you’ve diminished your prosperity and you’ve eaten Granola bars and Cup O’ Noodles so now you’ve sacrificed your health - just to diminish your prosperity - plus...you took your time to learn about how to live like that!?

That is just so absurd, scarcity-minded, and that is not serving people. Ugggh. I’m not going to go on, I don’t want to dip into hyperbole, but hearing about that stuff is just really dispiriting.

If I’m going to use my time to learn about something, I want to learn about how to produce, not reduce.

I think part of that is realizing that money is actually an abundant resource. Yes, money is an abundant resource.

How much currency does the Treasury Department print every day? During Fiscal Year 2014, the Bureau of Engraving and Printing delivered approximately 6.6 billion notes to the Federal Reserve. They produced approximately 24.8 million notes every day with a face value of approximately $560 million.

Those numbers are so large, some people can’t even fathom it.

Those stats right there can actually be picked apart all day. Most dollars aren’t even printed, of course, they’re digital and they’re created out of thin air when dollars are borrowed into creation - but it just gives you some idea of how abundant money is.

Look, my monthly internet bill is $145 and my Cable TV bill is $126 - yes, I have cable because it’s just a nice option and money is an abundant resource. I just learned this because I just saw the bills come in.

You know, I’m just really barely aware of my consumer bills. I’m into expanding my upside instead.

I don’t even know how much my monthly phone bill is. Maybe $100. So for internet, cable and phone combined, that’s...what three hundred seventy-some dollars a month? Is that a lot? It just doesn’t matter that much. I’m focused on what matters.

Expanding the upside. Money is an abundant resource.

How much do you like to spend on a hotel? To me, it seems like $300 a night is a common number to spend at a good hotel.

What about a $79 hotel? I wouldn’t even want to stay there. I might not even want to stay there for free.

But you know what, everyone has learned how to tap into abundance at a different level. Everyone’s got their price.

OK, what about a $2,500 hotel. What if I were staying there? I might think that that price is pretty steep.

I’ve got to admit, I would be asking myself a question like “Now why am I staying at a $2,500 hotel? Is this my honeymoon or something?” Maybe I would soon move to another hotel.

Well, didn’t I just say that money was an abundant resource, so what’s my problem?

Maybe the Amazon Founder, Jeff Bezos - he wouldn’t want to stay in a $300 hotel like I’m more used to and I just think of as standard. He might live in the $2,500 hotel year-round if he had to because it doesn’t matter to him.

See Jeff Bezos and Amazon.com have figured out how to provide more value to more people than you have - and than I have.

Money is an abundant resource. But just because something is abundant, doesn’t mean that it has no value.

Look, the air that you breathe is pretty abundant all around us but it’s also really valuable. We would die without air just like we would financially die without money.

But yet they’re both abundant.

Right now I’m not too far - and maybe you’re not too far - from a parking lot with hundreds of cars in it.

So cars look pretty abundant but each one still has value and utility just like dollars.

So the point is that a scarcity mindset and an abundant mindset are relative in a sense.

But really, if you’re looking to produce before you reduce, it’s an abundant mind.

Money is an abundant resource, and the amount of the world’s abundant supply of money that will be allocated to you on this earth is directly proportional to how much value you create for others…

...how much sound housing you can create for others.

Money is an abundant resource.

Well, way back in Episode 13 of Get Rich Education, more than three years ago, I did an episode called “Autonomous Cars Will Soon Disrupt Your Life and Investments”...and I talked about how this will have implications for real estate investing.

Well, we’re already seeing the world go that direction. In fact, ride-sharing services are accelerating this effect.

Fortune magazine just reported this in the last couple weeks here, in an article titled “Uber Really Is Killing The Parking Business”. In the article, it outlined how

Ride-hailing services like Uber and Lyft are having a negative impact on the demand for parking. The picture, at least for those trying to rent you a parking spot, is bleak.

In the email, unearthed from a company report by the San Diego Union-Tribune, Ace Parking CEO John Baumgardner says that demand for parking at hotels in San Diego has dropped by 5 to 10%, while restaurant valet demand is down 25%. The biggest drop, unsurprisingly, has been at nightclubs, where demand for valet parking has dropped a whopping 50%.

The numbers appear to be estimates, and Baumgardner doesn’t describe a timeframe for the declines.

The assessment, written last September (6 months ago now), is also limited to San Diego, though an Ace Parking executive told the Union-Tribune that it has seen “similar” declines at its 750 parking operations around the United States.

The company is focused on using technology, including better parking scheduling and booking options, to try to remain healthy.

But much more is at stake than the revenues of the parking business – cities stand to benefit immensely as demand for parking drops. Parking spaces and lots generate relatively little tax revenue or economic activity relative to commercial operations, and increasing sprawl may actually harm the economy of cities like Los Angeles.

Even back in 2015, cities were already relaxing zoning requirements that set minimum parking allotments, and there are now even more signs that city planners are thinking differently about parking.

[Now get this] - Perhaps most dramatically, a new Major League Soccer stadium being planned for David Beckham’s Miami expansion team may include no new parking at all – but will have designated pickup zones for Uber and Lyft.

The decline of parking will only be accelerated if and when autonomous vehicles become widespread. That sea-change which will make it easier to locate parking at a distance from urban destinations, and could further reduce car ownership.

That will be bad news for the Ace Parkings of the world – but everyone else should welcome the decline of the urban parking lot.

...and that’s “it” for the article.

I told you back in Episode 13 that this will spell a dramatic shift in the character and makeup of inner-cities and suburbs alike.

Right now, many U.S. cities have central agglomerations where the surface area is 40 to 60% parking spaces. When you hire a ride-share car, you didn’t need to drive your own car to work and you didn’t have to park your car.

Soon autonomous cars are expected to be all over the road and they’ll just always stay in motion.

You know what else this means for homes in the suburbs - homes with garages could become less desirable over time.

Now, they’ll probably just repurpose the garages, but…

In any case, so many trends are changing the way humans interact with real estate and the economy…

The internet diminished the need for office space as that almost completely wiped out the need for things like travel agencies.

The internet reduced the number of all kinds of other business like the number of bank branches.

Of course, Amazon keeps killing off traditional retail consumer good purchases.

Ride-share services and autonomous cars are diminishing the parking business - this one is now happening in front of our eyes - it is happening now - there’s no more “someday” on that one.

...And despite all these trends, the residential real estate space is hardly impacted. That’s why we focus on the residential space here - not only is it easier to understand because you interact with residential space every day of your life, but residential is here to stay.

Well, because we’re around residential real estate every day it’s kind of paradoxical that it’s so misunderstood by so many people.

When you tell a lot of people that you’re a real estate investor, oftentimes they think that you’re a house flipper, and then if they hear that you’ve got rental property, the next thing that they think about is that you must be the landlord.

If you’re either of those things - especially the landlord - you’re not getting a very good ROL - Return On Life.

So let’s talk about passivity.

You have the ability to make real estate investing passive - and at the beginning of this show - it says that you’ve created more passive income from this show than nearly any other show in the world.

Well, even if you’re “hands-off” and you’re not the landlord, it still doesn’t feel so passive if you’ve got a week where your rental property’s roof blew off and you’re looking at contractor quotes that your manager has pulled together for you and managing an insurance claim that you had to put in.

Aren’t you working for your passive income a little bit then?

...and I would say that, yes, you are at that time.

Your property might operate 24 hours a day, 7 days a week for many weeks in a row or even months in a row without your involvement at all.

It probably operates for you passively 98 or 99% of the time or more...passively. That’s why it’s called passive income. For you, it’s hands off. You’re not fixing leaky faucets and you’re not collecting rent checks.

When the problem that you have 1% of the time blows over, you’re right back to passive again.

Alright, compare that to your work-a-day job. What happens when you have a problem at work? You handle it, and what happens when that problem is handled and goes away - you go right back to active income.

At work whether you have a problem or whether things are going fine, it takes your involvement. ...and that’s really my point here for you.

It’s NEVER passive - unless you’ve got some vacation time. Then maybe you can say your active job is just 5 or 10% passive.

In real estate investing with the way we do it, passivity is the norm, not the exception.

So, just keep that in mind if - not if - but when - you have to be resilient during some bumps in your “almost-always” passive real estate investment portfolio.

You know, there is so much that I want to talk to you about every week that I just can barely fit it in. That’s why I do these monologue shows with no guest once in a while.

I haven’t even told you about my recent RE field trips to Florida or Belize yet, though I’m really looking forward to telling you more about those here.

You are really out there taking action so before you go, let me just help you with one other thing while you’re out there looking at properties.

Don’t underestimate the expenses that you project that your property will have.

Of course, your mortgage and all of your other expenses are 100% outsourced to your tenant in a cash-flowing property!

It’s easy for you to remember that you have a mortgage payment (principal plus interest) because that’s your largest expense.

You know that I’ve mentioned that an easy way to remember your other recurring expenses - which are really all of the operating expenses - because mortgage principal and interest are not an operating expenses…

...is with the acronym “VIMTUM” - and I mentioned VIMTUM last week when Clayton Morris interviewed me, but let’s hit each one of these:

Vacancy – This depends on your property type, the local job market, and more. 8% of the gross rent amount is often a good number, equating to about one month per year of vacancy. If you’re in a strong job market, 4-5% might work. You’re guessing here.

Insurance – Your lienholder requires you to have property insurance. Having a policy reduces your risk too. You can get quoted an exact number here.

Maintenance – Now here is where a lot people underestimate this number, which can be 3% to 15%+ of the gross rent amount. This is where you must make your best guess based on the property age, history and other factors.

Taxes – You have a property tax obligation, often 1 to 3% of the property value annually, depending on the area. This is an exact number that’s easy to find in county or municipal records.

Utilities – In a single-family income property, your tenant typically pays utilities. The more units in a property, the more likely you’ll be paying the heat, electric, refuse, water, etc. Utility companies have historical records so you can make a close expense determination.

Management – If you don’t have a Property Manager then your income isn’t passive. If you self-manage, then you must factor in your time expense. Management fees are typically 3% to 10% of the gross monthly rent amount. The more units in a building, the lower the management expense.

People like easy ways to remember things. That’s why I like VIMTUM.

I also made a video for you about these income property expenses where I’m talking directly to you. I’ll put that video link in the Show Notes for you.

So when you connect with an income property provider at GREturnkey.com - if they haven’t - then run your own numbers on an income property using that VIMTUM acronym.

Those providers are at GREturnkey.com - download a market report and get their contact information, and see what they have for inventory. It sure is thin in most markets these days.

I appreciate the time that you spent with me today, but you weren’t here for me you were here for you.

Until next week, I’m your host Keith Weinhold. Don’t quit your day dream!

____________________________

 

Direct download: GREepisode179_.mp3
Category:general -- posted at: 6:30am EDT

#178: The media - a FOX News Anchor - asks me about Get Rich Education wealth-building principles.

Rather than asking questions, I’m the one being interviewed here.

I tell the interviewer why getting your money to work for you will NOT create wealth.

In real estate, I tell you why your ROI typically goes down after Year One.

How to calculate a real estate rate of return; the differences between poor, middle class, and wealthy; being bold; increasing income, and more is discussed.

The interviewer, Clayton Morris, is an experienced real estate investor himself.

If you want to buy income property: 1) Start at RidgeLendingGroup.com to see how much property you qualify for. 2) Find reputable turnkey property providers at GREturnkey.com.

Want more wealth?

1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2)    Actionable turnkey real estate investing opportunity: GREturnkey.com

3)    Read my new, best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

03:48  Interview with longtime Fox News Anchor, Clayton Morris begins.

05:00  Be bold.

07:26  Increase income. This is available to anybody - no certification or degree needed.

11:56  My first four-plex, bought for $295,000 in 2002.

14:25  Self management vs. professional management.

16:30  Leverage.

19:01  Why it’s a good time to be a RE investor.

20:39  Lower middle class neighborhoods.

26:42  How RE investors actually get paid five ways simultaneously.  

39:32  Why your ROI typically goes down after Year One.

Resources Mentioned:

RidgeLendingGroup.com

ValhallaWealth.com

ClaytonMorris.com

GREturnkey.com

GetRichEducation.com

Direct download: GREepisode178_.mp3
Category:general -- posted at: 6:30am EDT

#177: Are you serving the 40-year-to-life sentence? Today’s guest, Jerry Fetta, is a former Dave Ramsey-endorsed local provider.

Jerry learned a better way and changed his life and the lives of others.

There’s a more abundant way. You just can’t afford to forgo the benefits of leverage and arbitrage.

Jerry is an expert at uncovering how the mutual fund industry manipulates reporting the ROI to their advantage and your detriment.

Questions that put your financial advisor on the hot seat are revealed today.

We discuss why “tax deferral” is a scam.

I simply don’t have time to do 1-on-1 coaching. Jerry is a good friend, lives in my hometown, and he’s offering GRE listeners a free consultation. See if you’re a good fit: GetRichEducation.com/Coaching.

Want more wealth?

1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2)    Actionable turnkey real estate investing opportunity: GREturnkey.com

3)    Read my new, best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

00:41  Mortgage interest rates are rising. Take action.

04:10  I used to be a debt-free, save-in-a-401(k), 15-year mortgage guy myself.

06:45  Jerry Fetta interview begins.

08:42  Jerry is a former Dave Ramsey-endorsed local provider.

11:14  Some things aren’t worth owning.

13:49  Affirmation vs. Information.

15:43  Jerry’s turning point: scarcity to abundance.

19:30  Stocks don’t produce wealth, but few make that correlation.

21:55  How mutual fund rates of return are reported: CAGR vs. AAR.

26:35  Questions to ask your financial advisor.

30:07  Tax deferral is a scam.

34:15  Case study: How Jerry helps a typical client.

39:03  The “passive income epiphany”.

43:24  Maybe someday? Come on. Integrity.

47:08  Engage with Jerry for 1-on-1 coaching free at GetRichEducation.com/Coaching.

Resources Mentioned:

GetRichEducation.com/Coaching

RidgeLendingGroup.com

ValhallaWealth.com

GREturnkey.com

GetRichEducation.com

Direct download: GREepisode177_1.mp3
Category:general -- posted at: 6:30am EDT

#176: Stock investors are not getting ahead, but they think that they are. 10% return, minus 5% inflation, minus 2% fees, minus taxes, minus volatility, minus more.

Most methods of valuing an income property are lousy. I tell you the good and the bad methods: price per square foot, price per unit, RV ratio, Gross Rent Multiplier, Cap Rate, Cash-On-Cash Return.

I tell you how to avoid overpaying for property by making your offer contingent on seeing the seller’s “Schedule E”.

The bustling Charlotte, North Carolina real estate market is discussed. It is growing at an enormously fast rate.

Learn about using IRAs and 401(k)s for buying real estate, and leverage vs. paying all-cash for property.

Want more wealth?

1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2)    Actionable turnkey real estate investing opportunity: GREturnkey.com

3)    Read my new, best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

01:06  Why stock investors aren’t getting ahead.

04:17  Real estate performs.

06:27  Mortgage interest rates are up, Fed Chair change.

07:26  How to avoid overpaying for property.

09:50  Income, expense, and financing gears.

10:03  Price per square foot, price per unit, RV ratio, Gross Rent Multiplier.

11:49  Cap Rate vs. Cash-On-Cash Return.

17:35  Avoid overpaying with Schedule E.

22:45  Charlotte, North Carolina’s rapid growth.

25:12  More appreciation, less cash flow.

29:11  Typical property is an SFHs, $100K-$120K rents $1,000+.

31:02  Using IRAs and 401(k)s to buy real estate.

35:08  Leverage vs. paying all-cash.

Resources Mentioned:

GetRichEducation.com/Charlotte

RidgeLendingGroup.com

ValhallaWealth.com

GREturnkey.com

GetRichEducation.com

 

Direct download: GREepisode176_.mp3
Category:general -- posted at: 6:30am EDT

#175: The next twenty years will be nothing like the last twenty years.

Chris Martenson of PeakProsperity.com tells you where wealth originates. It’s called primary wealth, consisting of things like trees, soil, a fishery, or a rich ore vein.

The further you invest from primary wealth, the less real wealth you have.

You learn about your 8 Forms Of Capital: Financial, Social, Material, Living, Emotional, Knowledge, Cultural, Time.

You also learn about the future of energy. Wind and solar energy are not replacements for oil.

I bring you today’s show from Anchorage, Alaska.

Want more wealth?

1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2)    Actionable turnkey real estate investing opportunity: GREturnkey.com

3)    Read my new, best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

00:58  The textbook definition of wealth.

04:05  Primary, secondary, and tertiary wealth.

07:39  Chris tells us why stocks aren’t real wealth.

09:33  Why economies can’t grow to infinity.

12:35  Energy growth limits. Oil vs. renewables like wind and solar.

22:42  The 8 Forms Of Capital: Financial, Social, Material, Living, Emotional, Knowledge, Cultural, Time.

30:10  How to get more Social Capital.

37:40  Holistic wealth. Happiness levels.

Resources Mentioned:

PeakProsperity.com

Chris Martenson’s book “Prosper”

RidgeLendingGroup.com

ValhallaWealth.com

GREturnkey.com

GetRichEducation.com

 

Direct download: GREepisode20175_1.mp3
Category:general -- posted at: 6:30am EDT

#174: You actually want to increase your personal expenses over the long-term. What kind of financial blasphemy is this? I explain.

You are worth more than you think. I tell you why.

If you’re 30 and you live until age 90, you only have 60 more autumns in your life. You only have 7% of your time left with your own parents. Your quality time is valuable and fleeting.

Some people have an overinflated sense about the importance of taxes. Rate of return matters more. Returns are like a pie, and taxes are only a piece of the larger pie.

If your portfolio is small, do you really need an LLC for your income property?

There’s a discussion of appreciation vs. cash flow.

I bring you today’s show from the Dominican Republic, where I'm vacationing.

Want more wealth?

1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2)    Actionable turnkey real estate investing opportunity: GREturnkey.com

3)    Read my new, best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

01:16  Over the long-term, you actually want to increase your expenses.

07:19  Why you are worth more than you think.

09:05  Measuring your life in terms of events and relationships.

20:37  If mortgage interest rates go up, rents go up next.

22:15  Rate of return is more important than tax rate.

24:16  Why do you think you need an LLC?

28:07  Real estate appreciation vs. cash flow.

Resources Mentioned:

Article about expenses

WaitButWhy.com

RidgeLendingGroup.com

ValhallaWealth.com

GREturnkey.com

GetRichEducation.com

Direct download: GREepisode174_.mp3
Category:general -- posted at: 6:29am EDT

#173: Don’t move to a low-tax state; let your tenant do it. Quit investing only for the long-term. I explain both.

Alabama is the #1 state for per capita foreign direct investment. We discuss turnkey real estate investing in Birmingham, Alabama.

A revival is taking place in Birmingham amidst economically diverse business sectors.

Long-term tenant retention occurs in Birmingham submarkets due to: 2-year leases, tenant-owned appliances, more.

When you purchase a turnkey property, you’re also “purchasing” a tenant and their income stream. We discuss.

It takes about $24K-$25K to “get into” this market with down payment and closing costs on a turnkey single-family home.

We also discuss how a real estate investor gets started: lender pre-approval, writing an offer, inspection, appraisal, etc.

Learn more and find Birmingham property at GetRichEducation.com/Birmingham.

I bring you today’s show from Orlando, Florida.

Want more wealth?

1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2)    Actionable turnkey real estate investing opportunity: GREturnkey.com

3)    Read my new, best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

01:14  Don’t move to a low-tax state. Quit investing only for the long-term.

06:14  Thriving Alabama and the revitalization of Birmingham.

10:00  Downtown Birmingham.

16:05  Primary market drivers in Birmingham: medical, automotive, Amazon sortation, education.

18:46  Neighborhood selection.

21:10  B-Class properties $80K to $125K. $1,000 rent on $104K property.

22:22  Tenant retention.

26:12  Property upgrades.

30:20  Tenant qualification.

32:38  Same rehabilitation company and management company.

36:00  City inspectors.

38:26  How you get started: lender pre-approval, writing an offer, inspection, appraisal, etc.

Resources Mentioned:

GetRichEducation.com/Birmingham

RidgeLendingGroup.com

ValhallaWealth.com

GREturnkey.com

GetRichEducation.com

 

Direct download: GREepisode173_.mp3
Category:general -- posted at: 6:29am EDT

#172: Your market choice is more important than your property choice.

One of the most prominent real estate developers in the United States, Victor Menasce, tells us how he selects a real estate market.

Investing in larger metro areas is generally safer than investing in smaller metro areas because geographies are better diversified.

Being invested in only one investment market is a mistake. You’re undiversified.

Should you pay more or less than the construction cost of a property?

Victor tells us the difference between price and value, and why that matters to you.

Four factors drive price/value: 1) Construction cost. 2) Availability of money. 3) Inflation. 4) Supply and Demand.

Victor is an expert at selecting markets, developing, and raising capital for deals.

If you’re developing or making a large real estate investment, think about how consulting Victor could be a great investment. Connect with him at VictorJM.com.

I join you from north Florida today because I’m out looking at, yes, real estate markets!

Want more wealth?

1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2)    Actionable turnkey real estate investing opportunity: GREturnkey.com

3)    Read my new, best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

01:45  Investing in only one geographic market is a mistake.

02:30  Recency bias.

08:00  Investors should start with economics and the market, not the property.

11:48  People are moving south.

13:10  Primary drivers. Oil & gas.

14:25  Real estate use type: senior housing, residential, shopping malls, office, medical.

20:25  Solving problems and meeting needs. Get out from behind your desk.

23:40  Buy on the line; move the line.

25:18  Formulas and numeric rules of thumb.

27:20  Jetsons vs. Flintstones.

29:55  Relationship-based deals.

32:24  Price vs. value.

37:43  Your turnkey provider has local knowledge.

Resources Mentioned:

VictorJM.com

GetRichEducation.com/Jax

GetRichEducation.com/Orlando

RidgeLendingGroup.com

ValhallaWealth.com

GREturnkey.com

GetRichEducation.com

 

Direct download: GREepisode172_.mp3
Category:general -- posted at: 6:29am EDT

#171: Your tenant is your customer. I discuss how to attract and retain great tenants. You must think about how your tenant thinks.

The quality of the asset you buy affects the quality of the tenant that you will attract.

Six qualities tenants want are: 1) safety 2) move-in-ready condition 3) short commute distance 4) upgrades 5) neighborhood amenities 6) rent amount.

It’s not about what you would want in a rental unit, it’s about what your tenant wants.

Next, I tell you how to profit from inflation. Debt has a bad name. It shouldn’t. I tell you why you want to consider borrowing massively to profit from inflation.

Want more wealth?

1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2)    Actionable turnkey real estate investing opportunity: GREturnkey.com

3)    Read my new, best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

01:56  The definition of great tenants.

03:11  Avoid “A” and “D” class areas.

04:16  Six ways to attract great tenants. 

13:23  How to retain the great tenants you’ve attracted.

20:55  How you can profit from inflation.

21:57  Inflation defined.

24:34  Why make extra mortgage principal payments?

27:28  Robert Kiyosaki.

31:05  The power of smart debt. How you get a “phantom” $40,000 gain per year on $1M debt.

Resources Mentioned:

How To Profit From Inflation - My Forbes article

RidgeLendingGroup.com

ValhallaWealth.com

GREturnkey.com

GetRichEducation.com

 

Hey, welcome to GRE. This is Get Rich Education, Episode 171. I’m your host and my name is Keith Weinhold and today we’re talking about how you attract and retain great tenants for your income properties - some of which is just sort of common sense.

Then after that we’re going to discuss a topic that’s definitely not common sense which is where real estate investing intersects with the economy that you live in everyday.

This is really fundamental stuff. Your tenant is your customer. You’ve got to be able to supply a product that they demand and then keep them there.

As any real estate investor knows, your #1 cash flow killer is vacancy and turnover. So let’s dig into the heart of how to reduce that for you here.

So the success or failure of your real estate investments depends on your ability to consistently attract and then retain great tenants.

In the end, it doesn’t matter how great of a deal you got on the property or how strong your projected cash flow and return on investment are. Without great tenants that pay rent on time and take care of your property, the cash flow and returns all just evaporate into thin air.

Great tenants by definition - have a job, clean, pay rent on time, and that they’re law-abiding. And yes, I do mean that they have a job.

Here at GRE we talk about “Don’t Follow Money, Make Money Follow You”, well your tenant doesn’t think that way. By and large, they move to where the job is. They make a central part of their life following money around rather than following their heart or following their passion or chasing their dream.

They follow a job. As I’ve often said, you want to think about how your tenant is thinking. Your tenant is just not as aspirational as you - the GRE listener is - and that’s OK - I’m glad that they’re there for us and that there’s a steady supply of soul sellers - yes, people selling their soul.

So the question that naturally follows is: How do you find great tenants for your investment property?

The answer is so simple, yet so impactful.

The quality of the asset you buy determines the quality of the tenant you are likely to get.

You can’t change a property’s location.

Now, understand that you don’t want actually want an amazing A-class location. Those high-end properties aren’t profitable for long-term rentals, anyway.

OK, you’re not looking for a single-family rental home with great, sweeping panoramic views of a pristine, sparkling lake that’s stocked with trout or a home with a 3-car heated garage with a painted floor.

That’s A-class stuff: the best properties.

I’d also advise staying away from the bottom: D-class properties - the worst. The ol’ collecting the rent at knifepoint stuff. That’s not where you want to be either.

If you want to find excellent tenants for your investment-grade property, you should first purchase an investment property with the qualities that attract excellent tenants.

So, really a great question to ponder - if you want to find good tenants - is: then what do good tenants look for in an rental property?

1. Safety

Safety is our most basic human need and a powerful motivator for excellent tenants. One of the main reasons why your prospective tenant decided to spend more to lease a home (as opposed to an apartment) is to provide a safe environment for themselves and their family.

Purchase properties in safe neighborhoods - again, avoiding D-class areas. Good turnkey providers know this & practice this. They have a company reputation to protect. Turnkey providers want referrals from satisfied investors.

2. Move-In Ready Condition

The condition of the property—and more specifically the ability to move right in—is very important to excellent tenants. You could rent out a property that’s not quite move-in ready (requires paint, flooring, cleaning, etc.), but I assure you it won’t be to an excellent tenant.

Your target tenant plans to take care of your property and has high standards of cleanliness and maintenance. If you provide a move-in ready home, you are communicating that you share those same standards.

You know what, the first property manager that I ever hired - I only employed them for a year or a year in a half before I had to get rid of them - is because when I had a vacancy, they just didn’t get the property fresh and clean for the next tenant.

So therefore, the unit still had knicks in the walls and faded paint and half-busted window blinds - and they considered that ready - they showed that to prospective new tenants.

Well, what a waste. I wouldn’t even want to accept the type of tenant that would accept living in those conditions themselves. Because that type of tenant probably wouldn’t respect the unit either.

So, what you can ask your manager to do - between your first few tenancies - is have them send you a 30 to 60 second walk-through video to verify that it’s acceptable to you.

If it’s acceptable to you, then it’s probably going to be acceptable to a quality tenant - and this is just a good way for you to get an update on how your property is looking across the country anyway. Any good manager will do that for you.

3. Proximity to Employment

Let’s face it, very few people like to commute! So proximity to employment centers is very important to good tenants. You can have a great, move-in ready home zoned to great schools, but it won’t matter if your tenant has to drive an hour to work each day.

As you look at potential properties, think about where your target tenants are likely to work and how close the property is to that area.

Proximity to things that everyone needs - like proximity to a good grocery store or a Walgreens or other drug store - that’s helpful too.

We’re talking about the fundamentals of what your tenant wants today. That’s your customer. The last time Rich Dad Advisor Ken McElroy was here, we discussed what the newer amenities are that tenants want today that they weren’t so much asking for 10-15 years ago like good wifi.

Today we’re just talking more fundamental.

4. Upgrades

Some inexperienced investors subscribe to the myth that your investment property needs to be good enough for you to want to live in it yourself. I’m telling you - depending upon your standards, that’s flawed. You’re really limiting yourself if you think that way.

I’m telling you, every rental property that I own - I can’t think of an exception to this right now - if I lived there, it would be a substantial downgrade to my quality of life.

Now, on the other side, you might think that that your unit just needs to be “good enough for a rental.” Therefore, you purchase starter homes with cheap finishes and maybe vinyl flooring that’s thin and peeling them at the edges and then you rent them to marginal tenants and get limited results.

That can almost work in some markets but this is likely going to hurt you with tenant retention. When that tenant starts doing just a little better financially, they’re going to move out.

So don’t do that; instead, purchase homes that have strategic upgrades that move the needle with the better calibre of tenants that you want: vinyl plank flooring, even granite countertop in some markets, black or stainless appliances - not so much white ones, covered patios, things like that.

You know how I talk about how it’s not about what you want, it’s about what your tenant wants. It’s about putting your desires aside.

For example - and I know that I’m different here - I’ve never understood people’s desire for hardwood laminate flooring or vinyl plank flooring.

To me personally, carpeting is just so much more comfortable. On top of that, when people move into a place that has the laminate flooring that they desire, what’s the first thing they do?

The first thing they do is find a big area rug to put on top of their laminate or vinyl flooring. Ugggh - I just don’t get it. And then the area rug doesn’t have any padding underneath it so it still isn’t nice & soft.

People say that laminate flooring is easier to clean - not really - not when you’ve put a big area rug in the middle of it - now you’ve got that rug to clean plus you need to use the Swiffer dry on the perimeter where the fake wood is - it just doesn’t make sense to me.

Plus in cold climates, the laminate feels cold on your feet. I’ve just never understood Americans’ desire for these cold, hard surfaces.

But this is where I have to put aside what I want. Most people - tenants included want cold, hard surfaces for whatever reason. I just don’t get it, but I don’t have to - you need to understand what the customer wants and give it to them.

...and I’m happy to give their cold, hard, vinyl plank to them because it’s more efficient for investors in the long run - it rarely has to be replaced.

-We’re talking about how to find and retain great tenants today.

5. Neighborhood Quality

Now, neighborhood quality is kind of different from safety. Neighborhood quality determines the quality of your tenants’ life. Think about the community you live in—the neighborhood amenities probably played a major part in your decision to live there.

Your lifestyle is different in a neighborhood with running and bike trails, community pools, tennis courts, a gym, etc.? Quality tenants care about neighborhood quality. A community doesn’t have to have ALL those amenities, but if it’s got a few, that’s better.

Access to Transport & Basics

Access to modes of transportation and basic necessities like grocery stores, restaurants and shopping is very important because it affects other important factors such as commute to work and lifestyle quality. When you’re looking at investment properties think about: How easy is it to get to the main highway/park and ride/public transportation? Are there basic services within easy reach?

6. Rent and Price

Last but not least, your investment is ultimately a business decision for you as well as your prospective tenant. Your tenant will be concerned with the rent, and you will be concerned with the relationship between the rent and the price you pay for the property. Make sure the projected rent isn’t so high that it limits your tenant pool and so low that it lowers the quality.

good tenants pay their rent on time. That’s a baseline. Great tenants go well beyond on-time payments. They treat the property with respect, seeing it as a home versus a rental, and they treat you as the owner and provider of that home with respect also.

So, there I’ve discussed six items that attract excellent tenants to your property.

Retention

You know what, if your tenant wants to paint the inside of their property, I say let them. It makes it like home to them, and when it makes it like home to them, you’re going to  retain them. They’re also more likely to a pay rent increase. They’ve invested their time in painting the place, plus it feels like home.

Conversely, what if they ask to paint the place and you tell them “no”? How long do you think they’ll feel like staying?

It can be written into the lease that they have to paint it back or whatever. So let them paint it. Let them make it feel like it’s theirs, and they’ll probably take better care of other parts of your property too.

Another way to retain excellent tenants if that you should ask for tenant referrals. Birds of the same feather flock together. You are the average of the five people that you spend the most time with.

If you ask your excellent tenant who their friends are and offer them a $100 gift card or even $200 gift card - that is so worth it for another excellent tenant.

Something else that helps with retention - and this is where the power of hiring out professional management really helps you - is that your manager should respond to maintenance requests promptly.

A good tenant will get sick of dealing with that leaky faucet, with that pilot light that keeps going out in the water heater. If you’re a full-time job worker, it’s a lot easier to defer - to put off - handling that maintenance request if you’re your own manager.

Again, think about how you would want to be treated. Think how your tenant is thinking. If their bathroom door hasn’t closed properly for three weeks after they’ve first told you about it, #1, they won’t be happy and #2, they sure aren’t going to refer their friends.

When it comes to maintenance requests, a 24-hour answering service for your tenants makes them feel better even if your manager doesn’t get to it right way.

Ultimately, what you want are happy tenants. When you have happy tenants, you’re probably meeting that ideal that we talk about here where you’re providing housing that’s - you’ve heard me say it many times - clean, safe, affordable, and functional.

I’m coming right back with more. We’re going to talk about perhaps the most stealth way that real estate investing makes you wealthy. Something that definitely does not qualify as “common sense” at all.

First - and I didn’t know whether I wanted to mention this earlier or not, but, while I’m talking to you my heart is rather heavy today because my Grandma Weinhold - my father’s mother passed away.

I actually tried to do the show here earlier and I wasn’t quite ready, but you know, I found some more strength when I realized that Grandma would have wanted me to do it. You know that I’ve sort of affectionately referred to my Grandma Weinhold as Grandma Yellen on the show before for her loose physical resemblance to Federal Reserve Chairwoman Janet Yellen...so, I thought you just deserved to know.

She was also my last surviving grandparent so from my perspective, I’ve lost an entire generation of my family today.

You know, at best, when something like this happens, I like to think “Don’t be sorry that it’s over. Be glad that it happened.”

Especially when she was 95 years old - just weeks from 96, she still lived in her own home by herself, and I just two days ago I talked to her on the phone as she was in her Lancaster County, Pennsylvania home and, you know, I could talk to her just like I’m talking to you - I never had to slow down my talking or raise my voice. She had a great mind.

Always incredibly loving & welcoming to others, she still hosted the entire extended family at her own Fivepointville, Pennsylvania house this past Christmas. It was her last Christmas.

I’ll be right back. I will always love you and your spirit, Grandma Weinhold.

_____________________

I’m Keith Weinhold. Welcome back to Get Rich Education.

Before you purchase that clean, safe, affordable, functional property, you’re going to be miles farther ahead if you have a mortgage lender that specializes specifically in income property loans. In fact, ideally, you’ll start there before you select a property.

A company that knows what non-owner-occupant investors need can get you closed faster - and even help ensure that you get closed at all. The company that’s helped more real estate investors realize their dreams of financial freedom than any other mortgage lender in the entire nation - can help you too. That’s Ridge Lending Group.

They’re based in Portland, Oregon but that hardly matters because they specifically focus on originating income property loans and they do it in almost every U.S. state. You can check them out at RidgeLendingGroup.com

Ridge Lending Group’s CEO Caeli Ridge has generously been here on the show with us three times to give you the inside scoop on how to best financially position yourself and about all the changing lending guidelines. She was most recently here on Episode 154.

So when you get ahold of them at RidgeLendingGroup.com, tell them thanks for coming onto GRE and helping you with your strategy.

You know, with what I’ve discussed on how to attract and retain great tenants in your property, I think that a lot of that is common sense, yet they’re the type of things you might tend to forget about if you aren’t reminded once in a while.

Something that’s not so common sense-ish is how you can profit from inflation - and my first-ever article that I wrote recently for Forbes Magazine covered that topic.

Not just reading the article to you here, but also injecting some more commentary into it for you...this is stealth stuff, so here we go...

As a 15-year real estate investor, author, Rich Dad Advisors writer and long-time real estate investing podcast host, I've found that homeowners and investors alike still champion the largely antiquated ideal of a "paid off" property. Inflation is just one of many reasons to consider maintaining a mortgage.

...and, by the way, leverage and tax benefits are some other big reasons for holding a mortgage - leverage is probably the biggest one - but we’re talking about inflation’s importance in why you should keep your mortgage loan balance high here.

First, What Is Inflation?

Inflation is the rate at which price levels rise. It results in the diminished purchasing power of your dollar, which keeps getting “watered down” over time. It is why your $8 Chipotle burrito will soon cost $9. It is why in 1913, a pack of Wrigley’s gum costing you 4 cents will cost you one dollar today.

You don’t think about inflation as much as you should

Do you know why you don’t think about inflation as much as you should?

because you’ve never seen an “inflation bill” alongside your electric bill, internet bill, credit card bill or Netflix bill. Inflation is insidious — an invisible tax, a stealthy thief.

Your inevitable dollar debasement is precisely why you wouldn’t keep a million dollars in the bank for three decades. In 30 years, a 4% inflation rate would whittle your million bucks down to just $308,000 of purchasing power.

From Ancient Romans crudely clipping the edge of denarius coins to the U.S. Federal Reserve’s Quantitative Easing in the 2000s, governments and central banks feed their inflationary mandate.

Well Now How Exactly Does Inflation Benefit Mortgage Holders?

In 30 years, a 4% inflation rate would whittle your million dollar mortgage down to just $308,000 of inflation-adjusted debt burden.

Yes, so just like inflation harms the saver, it benefits the borrower.

Real estate investors have the ability to borrow with long-term fixed-interest-rate mortgages tethered to an income property — at scale. When you borrow this way, your monthly principal and interest payments are completely outsourced to tenants. Why rush to pay down your loan when both tenants and inflation erode your debt for you?

When you're the beneficiary of this situation, you have to ask why you would make extra mortgage principal payments. When you do, here's what you're saying: "Hey, Mr. Banker, here's an extra $100! Don't pay me any interest on it. If I need it back, I'll pay you fees once again, plus I'll prove to you that I qualify again."

That’s kind of along the lines of my whole “Financially-Free Beats Debt-Free” mantra there.

Rather than using an extra $100 to pay down your mortgage, what if you used it toward investing in more real estate? If you believe that real estate creates wealth, then you want to control more property, not less. You can't shrink your way to wealth.

Take out a million-dollar loan and factor in, say, 10% inflation over a couple years, and you will end up only having to pay it back in nominal (in name only) terms. Your lender is not requiring you to repay in inflation-adjusted dollars. So with that 10% inflation, it becomes just $900,000 that you need to pay back in real terms.

As time passes, an inflating currency supply means that wages escalate, consumer prices climb higher and your properties will command higher rents. This is why it becomes ever-easier to pay back your debt. Inflation-profiting is your quietest wealth center as a real estate investor. It is your “friendly phantom."

If you have, for example, a $1,250 fixed-rate amortizing mortgage payment on a property you lease to others, that won’t rise with inflation either. But your rental income will. This is why your cash flow grows faster than inflation over time. It’s because your biggest expense - your loan repayment amount - is typically fixed.

No loan means no inflation-profiting benefits.

Inflation transfers wealth from lenders to borrowers. Lenders are paid back with diluted dollars. Real estate investors are optimally positioned to take advantage of this.

Remember, if inflation transfers wealth from lenders to borrowers, how many mortgage notes do you really want to hold onto? I know we’ve got some mortgage note investors out there.

I want to mostly get on the debt side instead. When I’m a debtor, now I’ve got inflation helping me, not working against me like it does for mortgage note holders when that person is making a loan to others.

Again, inflation transfers wealth from lenders to borrowers.

What did Robert Kiyosaki say about debt the last time that he was on the show here with us?

So, this Robert Kiyosaki, the author of the book “Rich Dad, Poor Dad” and the greatest personal finance author of all-time, when asked about real estate, debt was the first thing that he brought up! By the way, he was last with us here in Episode 126 if you want to listen back, so...

The rise of globalization and technology might slow inflation’s creep, but I don’t believe that it can reverse it. To create wealth, you need to both think and act differently than the crowd.

Importantly, each debt origination is smartly anchored to an income-producing asset — a property — that’s worth more than the amount of that debt. If your asset value temporarily drops like many experienced in 2007-2010, would you really be concerned if it still produces income for you?

Risk still exists. You must carefully select this cash-flowing asset in a metro area that projects job and population growth so that you have a reasonable expectation that the property will stay occupied with a rent-paying tenant.

Why Does Debt Get A Bad Name?

Debt triggers negative feelings because your first experience with debt likely was when it was tied to something that didn’t produce income. You worked overtime on the weekend in order to make your Honda Civic payment.

You made sacrifices to pay credit card finance charges on a Morton’s Steakhouse dinner that you splurged on six months earlier.

You paid for your Honda Civic -- your Honda Civic never paid you.

But if you use smart debt tied to an income-producing single-family home or eight-plex, now you’re on top of debt — not trapped beneath it.

What’s Your Bottom Line?

You borrow — massively. That’s how you profit from inflation.

If you have substantial equity in only a few properties, make equity transfers via cash-out refinances and 1031 tax-deferred exchanges. This creates smaller equity positions in more properties.

First, this means you'll have more smart debt. Secondly, realize that your equity is not lost -- it is only transferred in order to create greater leverage.

Thirdly, you can better diversify into different geographies, hedging market risk.

Fourthly, with greater projected cash flows, you've taken steps away from debt freedom and toward financial freedom. Finally, you're quietly profiting from inflation.

Your currency will keep losing value. Rather than this causing frustration, now you know how to make inflation profitable. In fact, I’m an inflation cheerleader. Some people have so much bad debt that they can’t sleep. If I didn’t have enough smart debt, I couldn’t sleep.

So, this is why I’m interested in debt. Just think, for every million dollars in real estate debt that you have, if inflation is 4% - and it’s easy to believe that the real rate of inflation could be higher than 4% - and certainly higher than what the government reports…

...but at just a 4% inflation rate, your million dollars of debt that’s outsourced to others means that you’re being enriched an extra $40,000 every year.

$40,000 for you every year - and this is a way that real estate makes you wealthy that most people just never even consider…

...and how many people hold onto $1M of debt for as little as a year. Almost nobody, so over just five years, that’s an extra $200,000 transferred to you. Actually with compounding - it’s more - maybe $220,000 over five years - again, on something that most people don’t even notice.

So, it’s no wonder why real estate investing has made more ordinary people wealthy than anything else.

Gosh, if you’re newer to studying the economy, just read more on Investopedia on what economists think the true rate of inflation is.

We’re just been talking about 4% inflation on your $1M of cash-flowing real estate debt.

What if you’ve got 6% inflation - again, a totally realistic number - 6% on $2M worth of debt? That’s a $120,000 gain that you’re receiving each year. You’re holding properties more than one year.

So over five years, that’s a $600,000 gain for you - maybe $630,000 or something like that with compounding - and this is something going on in the background that most people don’t even consider - with all the other ways that real estate is paying you.

Just astounding!

I’ve linked that Forbes article for you in the Show Notes in case you care to read that to help reinforce what you’ve just listened to.

I also discuss the inflation-hedging benefit and the four other ways that real estate investing pays you - yes, you’re paid five ways simultaneously as longtime listeners know. I discuss all this in my quick-read 80-page book and I’m giving away the e-version of that book “7 Money Myths That Are Killing Your Wealth Potential” completely free. I’m not sure how much longer I’m going to to that.

Not just a teaser chapter or two giveaway, but I’m giving away the entire book free at GetRichEducation.com

That ought to give you plenty to think about until next week. I am enthusiastically dedicated to helping you build durable wealth for yourself. That’s why I’ll be back for you next week.

Until then, Don’t Quit Your Day Dream!

Direct download: GREepisode171_.mp3
Category:general -- posted at: 6:29am EDT

#170: You can live a rich life and leave a rich legacy at the same time. Guest Rachel Jensen and I discuss how.

Timber is a hard asset that physically grows in size, and often grows in value at the same time.

Your real estate, gold, or stock share might increase in value - but it doesn’t increase in size at the same time like timber does.

Among timber varieties, you’ve probably heard of teak wood but might not know much about it. It has great value due to its durability.

Teak’s natural oils make it resistant to fire, pests, and the elements. That’s why teak is so popular for boats, decking, furniture, and more. Teak was even used on The Titanic!

The world continues to have more humans and less arable land. Teak products have been used for over 300 years. This makes teak supply vs. demand fundamentals sound for investors.

Traditionally, most timber investing was done by ultra-wealthy people, and prestigious Ivy League endowment funds like Harvard and Yale (they both still invest in timber).

Today you’ll learn about how everyday investors can invest in teak parcels:

  • Land titled to you that can appreciate in value.
  • Divided 1/4-acre parcels where you get income from the teak harvest.
  • Low cost of entry.
  • Available inventory at this time.
  • Turnkey-managed.
  • Light taxation.
  • Use with cash or IRA funds.
  • Optional qualification for a residency program.
  • Ability to gain both shorter-term income for yourself, and a legacy for others.

You’ll learn that our provider offers Get Rich Education followers like you a discount per parcel for a limited time.

Want more wealth?

1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2)    Actionable turnkey real estate investing opportunity: GREturnkey.com

3)    Read my new, best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

01:51  Timber vs. gold.

03:17  One particular timber type - teak wood - is particularly valuable.

06:42  Teak properties and uses.

10:30  Supply vs. demand for teak.

15:15  Historically, only the wealthy invested directly in timber.

18:47  Surveying small parcels of teak hardwood for “average investors”.

22:17  Teak parcels can be titled to you. You also own the trees on the land.

23:47  Light taxation. Panama stability.

26:47  Parcel size and cost.

27:45  Turnkey management.

30:23  Reforesting your parcel can qualify you for Panama residency (optional).

35:10  Learn more with a special report at GetRichEducation.com/Teak.

37:45  The provider made 4-6 months financing is available for you as a GRE listener.

Resources Mentioned:

GetRichEducation.com/Teak

Wayfair.com

RidgeLendingGroup.comValhallaWealth.com

GREturnkey.com

GetRichEducation.com

Direct download: GREepisode170_1_.mp3
Category:general -- posted at: 6:28am EDT

#169: If you want profit, your real estate’s rent income-to-purchase price ratio matters most. I reveal the top five cities for this vital ratio.

I discuss how the media often gets real estate investing wrong. I talk about how to handle your relationship with your Property Manager.

Renters have conventionally been young, single, less educated, and low to middle income. You’ll learn about how quickly this is changing. When did renters get so old?

Of all product types, more renters are demanding to rent single-family homes rather than other product types.

Later, Get Rich Education listener Jacob Ayers stops by to chat with me. He hosts The Real Estate Way To Wealth And Freedom podcast. GRE is the first podcast that Jacob ever heard; now he’s on the show.

Want more wealth?

1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2)    Actionable turnkey real estate investing opportunity: GREturnkey.com

3)    Read my new, best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

01:04  Top 5 cities with the best ratio of rent income-to-purchase price.

05:03  How the media gets real estate investing wrong.

06:50  Your Property Manager.

11:28  Tenant demographics.

13:26  Surging rental demand for single-family homes.

17:58  I’m soon going on a Florida real estate tour.

21:16  GRE Listener Jacob Ayers chat begins.

23:59  Following money vs. making money follow you.

25:25  Jacob’s first rental property cost just $25,000 in western Oklahoma.

28:33  Jacob’s first mistake involved tenant screening.

30:57  Tips for RE investors with a full-time job.

32:25  Jacob encourages you to get started.

35:47  Live where you want; invest where the numbers make sense.

37:33  Jacob now hosts his own podcast.

Resources Mentioned:

Article: Best Markets For RE Investors

Article: Should You Rent Or Buy Your Home?

JacobAyers.com

Podcast: The Real Estate Way To Wealth And Freedom

RidgeLendingGroup.com

ValhallaWealth.com

GREturnkey.com

GetRichEducation.com

Direct download: GREepisode169.mp3
Category:general -- posted at: 6:28am EDT

#168: Reduce your taxes by 10-40% in just three months. Rich Dad Tax Advisor Tom Wheelwright is back again to tell us how.

Tom and I discuss the IRS’ coveted Real Estate Professional designation - the benefits, what you must do, and what you must not do.

If you outsource property management, will that prevent you from the RE Professional designation?

Some U.S. states have annoyingly high transfer taxes. We discuss a strategy to avoid paying it.

Want more wealth?

1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2)    Actionable turnkey real estate investing opportunity: GREturnkey.com

3)    Read my new, best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

01:02  Invest for income.

03:17  Real estate is a great tax shield.

08:00  Motivation and mindset behind tax reduction.

12:44  The tax code is a treasure map for deductions.

15:31  The Real Estate Professional designation.

20:22  Property management and the RE Professional designation.

24:28  Transfer tax in real estate.

27:34  Assets vs. Liabilities.

29:22  LLCs and transfer tax.

30:51  You can’t reach your dream by paying high taxes.

Resources Mentioned:

TaxFreeWealthAdvisor.com

Tom’s book: Tax-Free Wealth

Real Estate Transfer Tax by state

RidgeLendingGroup.com

ValhallaWealth.com

GREturnkey.com

GetRichEducation.com

Direct download: GREepisode168_.mp3
Category:general -- posted at: 6:28am EDT

#167: Want to own your own bank? Today’s guest, M.C. Laubscher, tells you how and why.

The “Infinite Banking Concept” provides you with liquidity, tax-free growth, and your own control outside the banking system.

Many real estate investors utilize the Infinite Banking Concept, aka “Cashflow Banking” to increase their rates of return.

Today’s guest also hosts the Cashflow Ninja podcast.

First, I tell you how you are giving more to others than you think. You are already more generous than you knew.

Want more wealth?

1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2)    Actionable turnkey real estate investing opportunity: GREturnkey.com

3)    Read my new, best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

00:52  You are more of a giver than you think. Here’s why.

02:53  Mobility.

07:58  M.C. Laubscher’s background and “Rich Dad, Poor Dad” influence.

11:40  Why people struggle financially.

14:11  People don’t even consider investing for income.

18:00  Your wealth formula.

21:11  Structured Whole Life Insurance with the Infinite Banking Concept.

25:55  Example of a $1,000 monthly contribution. 6-7% interest rate.

28:45  Example with $60,000 cash value balance.

32:22  Insurance companies are profitable and enduring.

Resources Mentioned:

YourOwnBankingSystem.com

RidgeLendingGroup.com

ValhallaWealth.com

GREturnkey.com

GetRichEducation.com

Direct download: GREepisode167_1_.mp3
Category:general -- posted at: 6:28am EDT

#166: Changes to the 1031 Tax-Deferred Exchange, 27.5 year tax depreciation, the Estate Tax and more are coming. It will affect you as an investor.

Rich Dad Advisor Tom Wheelwright is back with us. He details the winners and losers expected from the most sweeping tax reform that the U.S. is set to experience since 1986.

First, Keith discusses 6.2% national real estate appreciation, and different ways to think about real estate diversification.

Individual tax benefits are going away. Business tax benefits are increasing.

Want more wealth?

1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2)    Actionable turnkey real estate investing opportunity: GREturnkey.com

3)    Read my new, best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

01:08  Housing prices are up 6.2% year-over-year per Case-Shiller.

03:00  Diversification.

05:18  New construction turnkeys through GREturnkey.com.

09:13  Tom Wheelwright interview begins.

15:12  Depreciation durations are changing to 25 years for both residential and commercial.

15:50  1031 Tax-Deferred Exchange changes to the personal property portion.

18:37  Later, there will be individual tax rate changes.

22:35  More on 1031 Tax-Deferred Exchanges.

23:32  Estate Tax.

27:42  These are the greatest tax changes since 1986.

28:23  Limitation on offsetting your taxable gains with losses.

30:39  I review the basics of tax depreciation on income property.

Resources Mentioned:

Tax Free Wealth Advisor | 866-467-5809

Case-Shiller Housing Price Index latest

RidgeLendingGroup.com

Valhalla Wealth

GREturnkey.com

GetRichEducation.com

Direct download: GREepisode166_2_.mp3
Category:general -- posted at: 6:28am EDT

#165: Overcome the fear of quitting your job and replacing it with passive income from real estate investing.

Avoid these mistakes before you quit your job. I discuss some mindsets that you should adopt before you quit (if you even want to). I open up to you and tell you how I felt and what I thought about quitting my job.

Time vs. money - which one is more important? I give a clear answer. People fear future poverty. That’s one reason why most choose money over time. We discuss which one makes you happier - more money or more time.

You learn how to measure your wealth. If you don’t have the time, we discuss how to “find the time”. I’ve learned that most people want freedom more than money.

There is a solution to life’s money vs. time conundrum that few seem to mention - passive income.

Want more wealth?

1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2)    Actionable turnkey real estate investing opportunity: GREturnkey.com

3)    Read my new, best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

01:19  Why time is more important than money.

05:12  A research study found that 64% preferred money over time. But those that preferred time were happier.

06:44  Passive income solves the money vs. time conundrum.

08:09  How to measure your wealth.

09:20  I relate my experience of quitting my job. Overcoming fear.

14:14  Buying time rather than selling it.

18:47  Employees haul water buckets. Investors and entrepreneurs build pipelines.

21:04  How car commuting keeps you poor.

24:33  The types of people I gravitate toward.

26:59  The Pareto Principle.

29:26  Finding the time.

31:17  Most want freedom more than money.

32:16  Options vs. obligations.

33:30  After 3+ years of continuity, I tell you why I changed the show introduction.

Resources Mentioned:

RidgeLendingGroup.com

Valhalla Wealth

GREturnkey.com

GetRichEducation.com

Direct download: GREepisode165_.mp3
Category:general -- posted at: 6:28am EDT

#164: It doesn’t take money to make money. It doesn't take YOUR money anyway.

Rich Dad Advisor Darren Weeks is a real estate investor, entrepreneur, and is an expert at raising capital from others in order to fund real estate deals.

He gives us the exact script that he uses for raising money from others.  A confused mind won’t buy. People only buy from you if they trust you and like you. He tells us how to quickly build this trust with strangers.

Darren finds people for funding real estate deals at dentist and teacher conventions.

Surprisingly, Darren also reveals that he has available capital for your deal right now - in case you’ve got one.

I discuss some ugly problems that I’ve had as a real estate investor this year, including homeless people squatting in one of my apartment buildings, and an eviction.

Near the end of the show, I also review the 5 ways that you’re simultaneously paid as a real estate investor, culminating in an ROI of 41%. Think it sounds impossible? I add it up for you. Most people just don't know how to calculate returns.

Want more wealth?

1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2)    Actionable turnkey real estate investing opportunity: GREturnkey.com

3)    Read my new, best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

01:52  I share my recent real estate problems with you - eviction, homeless squatters.

04:27  “Setting the tone” with your Property Manager.

08:55  Darren Weeks interview begins.

12:57  Paying seminar fees.

14:24  Tips for real estate investing outside your home area.

21:10  Entrepreneurs investing in real estate.

25:30  Mutual funds haven’t created wealth for anybody.

27:22  Raising capital from others for deals.

30:30  Low-pressure sales tactics.

33:41  Are you “qualified” to raise money from other investors?

35:52  A confused mind won’t buy. People only buy from you if they trust you and like you.

37:55  Surprisingly, teacher and dentist conventions are a source of deal funding.

39:48  United States vs. Canadian real estate investing. 30-year fixed rates vs. 5-year.

42:54  The 5 Ways You’re Paid In Real Estate Investing.

45:46  Canada does not have a Capital Gains-Tax Deferral equivalent like the U.S.’s 1031 Exchange.

47:20  I finally have a 1-on-1 Wealth Coaching recommendation. Learn more at GetRichEducation.com/Coaching.   

Resources Mentioned:

Darren Weeks - Amazon

Black Rifle Coffee Company

RidgeLendingGroup.com

Valhalla Wealth

GetRichEducation.com/Coaching

GREturnkey.com

GetRichEducation.com

Direct download: GREepisode164_1.mp3
Category:general -- posted at: 6:27am EDT

#163: Home equity is a terrible investment - it is unsafe, illiquid, has zero ROI, makes your foreclosure risk greater, and it can leave your assets exposed to lawsuits.

Some have called today’s material shocking - a revelation. What you thought was black is white. What you thought was dark is light.

Home equity can never go up in value, but might go down value. You must embrace mortgages. I collect mortgages every bit as much as I collect cash-flowing properties.

I practice what I preach and only keep 15% equity in my primary residence, and minimum equity positions in investment properties.

You would be better off burying money in your backyard than using it to pay down your mortgage.

In the 1920s, a common clause in bank loan agreements stated that your loan could be called due at any time. That created fear which still resonates today. But it’s no longer true; banks won’t call your mortgage loan due anytime.

30-year vs. 15-year vs. interest-only mortgage loans are examined.

Homes are not meant to store cash, they’re meant to house families. Holding too much equity in any one property can kill your wealth potential.

If you want wealth, you need to consider dispersing your home equity among many income-producing properties across different geographies.

Want more wealth?

1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2)    Actionable turnkey real estate investing opportunity: GREturnkey.com

3)    Read my new, best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

01:37  Eliminating debt often postpones your financial freedom.

04:05  In the 1920s, a common clause in bank loan agreements stated that your loan could be called due at any time. That’s no longer true.

07:23  Paying off debt prevents you from accumulating assets.

08:48  Liquidity, safety, and rate of return are three reasons for keeping a high mortgage loan balance.

11:35  Why your foreclosure risk is greater if you have a high equity position.

16:33  Natural disasters.

19:56  Getting sued, asset protection.

21:40  The ROI from home equity is always zero.

26:15  Cash-out refinances and 1031 Tax-Deferred Exchanges.

28:12  Be your own banker. Create arbitrage.

29:00  30-year vs. 15-year fixed rate amortizing vs. interest-only loans.

30:42  Another example of home equity providing zero ROI and being unsafe.

33:04  Enjoy collecting mortgages. Equity transfers.

34:37  Those with less financial education want to pay off their properties.

36:55  Outsource lower use tasks.

38:56  Control.

40:04  Mortgage payments vs. housing payments.

42:27  A house is not an asset.

43:58  Act at RidgeLendingGroup.com for loans, GREturnkey.com for properties.

Resources Mentioned:

GREturnkey.com

RidgeLendingGroup.com

CorporateDirect.com

GetRichEducation.com

 

Here. It. Is. Hey, Welcome to Episode 163 of Get Rich Education - the show that at this point has created more passive income and financial freedom for busy people like you than nearly any other show in the world.

I’m Keith Weinhold.

Your financial forecast is going to be looking sunnier than ever after today. I’ll tell you why.

But you know what, your open mind might very well find the content in today’s show shocking.

Some people have believed the same old antiquated thing for so long, that they figure that the notion that has been believed for so long MUST absolutely be true - merely because it’s been believed for a long time.

Yes, just because you’ve believed something for a long time, doesn’t make it true.

It’s sort of like - I think Yoda even said it - “You must unlearn what you have learned”. A lot of times you need to unlearn the old before you’ve made room for new ideas.

Eliminating your debt can actually postpone your financial freedom. You need to form both the habits and the actions that produce income streams. Well, you can’t very well do that if you put your money toward retiring debt.

Focusing too much on becoming debt-free means that your money is being sent away to retire. That’s why you can’t retire. You can’t retire - or be financially-free - because you’ve sent your money away to retire - rather than work for you.

If you could invest in something that could never go up in value but could only go down in value, then how much of that invest would you want?

Well, zero - right? We’re intelligent people that invest for the production of income, not speculate on a hope for capital gains.

The investment that can never go up in value but can only go down in value is home equity - or even your rental property’s equity.

In fact, I have the ability to pay off my home’s mortgage but I refuse to do so.

I embrace mortgages. I don’t fear them.

Many Americans believe these following statements to be true, but in reality they are myths and misconceptions:

OK, here we go: Your home equity is a prudent investment. FALSE

Extra principal payments on your mortgage saves you money. FALSE

Mortgage interest should be eliminated as soon as possible. FALSE

Substantial equity in your home enhances your net worth. FALSE

Home Equity has a rate of return. FALSE

THERE IS A REASON WHY SO MANY PEOPLE FEAR MORTGAGES, AND WHY YOU SHOULDN’T In order to discover how our great grandparents and our grandparents and even our parents and perhaps even you - got the idea that a mortgage is a bad thing and a necessary evil at best, we must go back in time to the Great Depression - and then we’re going to bring it up to the Present Day here...

In the 1920s a common clause in loan agreements gave banks the right to demand full repayment of your mortgage loan at any time.

Since this was like asking for the moon and the stars, no one really worried about it.

Then, when the stock market crashed on October 29, 1929 millions of investors lost huge sums of money, much of it on margin. Back then, you could buy $10 of stock for a $1.

Since the value of the stocks dropped, few investors wanted to sell, so they had to go to the bank and take out cash to cover their margin call.

It didn’t take long for the banks to run out of cash - so they started calling loans due from good Americans who were faithfully making their mortgage payments every month. However, there wasn’t any demand to buy these homes, so prices continued to drop.

To cover the margin calls, brokers were forced to sell stocks and once again there wasn’t a market for stocks so the prices kept dropping. Ultimately, the Great Depression saw the stock market fall more than 75% from its 1929 highs. 

More than half the nation’s banks failed and millions of homeowners, unable to raise the cash they needed to payoff their loans, lost their homes. Out of this the American Mantra was born and it said this: “Always own your home outright. Never carry a mortgage.”

The reasoning behind America’s new mantra was really quite simple: if the economy fell to pieces, at least you still had your home and the bank couldn’t take it away from you. Maybe you couldn’t put any food on the table or pay your bills, but at least your home was secure.

Since the Great Depression laws have been introduced that make it illegal for banks to call your loan due. The bank can no longer call you up and say, “We’re running a little short on cash and need you to pay off your mortgage loan in the next thirty days.” That just can’t happen.

Additionally, the Fed is now quick to infuse money into the system if there is a run on the banks, as we saw in 1987 and we sort of saw with Quantitative Easing later.

Also, the FDIC was created to insure banks. Still, you can see how the fear of losing their home became instilled in the hearts and minds of the American people, and they quickly grew to fear their mortgage.

In the 1950’s and 60’s families would throw mortgage burning parties to celebrate paying off their home. And so, because of this fear of their mortgage, for about 90 years now most people have overlooked the opportunities their mortgage provides to build financial security.

SO THERE’S A REASON WHY PEOPLE HATE THEIR MORTGAGE AND WHY YOU SHOULDN’T

Many people hate their mortgage because they know over the life of a 30 year loan, they will spend more in interest than the house cost them in the first place. To save money it becomes very tempting to make a bigger down payment, or to make extra monthly principal payments. 

Unfortunately, saving money is not the same as making money. Or, put another way, paying off debt is not the same as accumulating assets. By tackling the mortgage pay-off first, and the investing goal second, many fail to consider the important role a mortgage plays in your effort toward financial freedom. 

Every dollar we give the bank is a dollar we then...did not invest. While paying off the mortgage saves us interest, it denies us the opportunity to earn greater interest with that money. 

Are you still doing something like this? “Hey Mr. Banker, here is an extra $100 principal payment. Don’t pay me any interest on it. If I need it back, I’ll pay you fees, borrow it back on your terms, and plus I’ll try to prove to you that I qualify again.” 

Some people - a lot of people - still do that! That is fear, scarcity, and a lack of education rather than knowledge, abundance, and mastery.

Money you give the bank is money you’ll never see again unless you refinance or sell that property - whether that property is your primary residence, or it’s one of your income properties.

Why separate the equity from your home? Why would you want to have the equity removed from your home? There are actually three primary reasons: 1. LIQUIDITY 2. SAFETY 3. RATE OF RETURN - there are many more reasons too. But, let’s focus on those.

  1. HOW LIQUID IS IT? (Can I get my money back when I want it?) 2. HOW SAFE IS IT? (Is it guaranteed or insured?) 3. WHAT RATE OF RETURN CAN I EXPECT? Home equity fails all three tests of a prudent investment.

Let’s examine each of these core elements in more detail to better understand why home equity fails the tests of a prudent investment, and, more importantly, why home-owners benefit by separating the equity from their home.

So why SEPARATE EQUITY TO INCREASE LIQUIDITY? Well, what is one of the biggest secrets in real estate? It’s that your mortgage is really a loan against your income, moreso than a loan against the value of your house. 

Without an income, in many cases you just can’t get a loan. If you suddenly experienced difficult financial times, would your rather have $50,000 of liquid cash to help you make your mortgage payment, or have an additional $50,000 of equity already trapped in your home?

Almost every person who has ever lost their home to foreclosure would have been better off if they had their equity separated from their home in a liquid, safe, conservative side fund that could be used to make mortgage payments during their time of need.

The importance of liquidity became all too clear when the stock market crashed in October of 1987, or March of 2000, or September of 2008. If someone had advised you to first sell your stocks and convert to cash, they would have been a hero.

Or, if you had enough liquidity you could have weathered the storm. Those with other liquid assets were able to remain invested. They were rewarded as the market rebounded and recovered fully - sometimes pretty quickly.

However, those without liquidity were forced to sell while the market was down, causing them to accept significant losses.

“It’s better to have access to the equity or value of your home and not need it, than to need it and not be able to get at it.”

Of course, I don’t advocate for people to have much exposure to stocks because that isn’t where the wealth is created. If you want to build wealth, keep your equity out of stocks, and maintain small equity positions in many income-producing properties.

TO REDUCE THE RISK OF FORECLOSURE DURING UNFORESEEN SETBACKS, KEEP YOUR MORTGAGE BALANCE AS HIGH AS POSSIBLE

Is your home really safe? Unfortunately, many home buyers have the misconception that paying down their mortgage quickly is the best method of reducing the risk of foreclosure on their homes. However, in reality, the exact opposite is true.

As homeowners pay down their mortgage, they are unknowingly transferring the risk from the bank to themselves. When the mortgage balance is high, the bank carries the most risk. When the mortgage balance is low, the homeowner bears the risk. 

With a low mortgage balance the bank is in a great position, as they stand to make a nice profit if you defaults. In addition to assuming unnecessary risk, many people who scrape up every bit of extra money they can to apply against principal often find themselves with no liquidity.

When tough times come, they find themselves scrambling to make their mortgage payments.

Alright, just imagine this scenario.

Assume you’re a mortgage banker - you’re sitting in your plush leather chair in your corner office - and you’re looking at your loan portfolio as this mortgage banker that you are, and you have 100 loans that are delinquent.

All of the loans are for homes valued at $600,000. OK, so you’ve got all hundred of these $600,000 homes - and your borrower payments have become delinquent on every one.

Some of the loan balances are $300,000 and some are $500,000. Suddenly, there is a glut in the market and the homes are now worth $400,000.

Which homes do you as the banker foreclose on FIRST? The ones owing the least amount of money, of course. After all, as a banker you’d make money taking back those homes, however you’d lose money trying to sell a home for $400,000 when you still would have been owed $500,000 on it if you just keep that in your portfolio.

Banks have been known to call delinquent homeowners with high mortgage balances and offer assistance to those people - they’re not going to try to foreclose on them.

In that case, as a mortgage banker in your plush leather chair, you’re going to get on the phone with your homeowner / borrower and you’re going to say, “We understand you are going through some tough times, is there anything we can do to help you? We really want you to be able to keep your home.”

The last thing they want to do is take back a home that they will lose money reselling. Because that homeowner smartly kept their mortgage balance high.

So you as an owner of your own home or owner of income property want to keep your mortgage balance high and your equity position low.

If you fall ill or become incapacitated in a car accident and you’re not able to work, you want to be sure that your family is protected.

Well, while you’re in a hospital bed - or worse - or you’re gone - the bank is going to foreclose on those homes that have a low mortgage loan balance first. Those with a high mortgage loan balance will get the workouts. More equity is more risk.

So that’s why I wanted to put you in the position of YOU as the mortgage banker in your leather easy-chair.

Don’t vilify the banks with being ruthless with foreclosing on those with high equity positions - because if you were given two equally difficult tasks, which would you do first? 

If you had two wheelbarrows sitting in front of you, you had to push each one up a hill, and one wheelbarrow was empty and the other one had 100 pounds of concrete in it that you had to grunt and struggle to push up the hill - yet both tasks paid you the same, then which wheelbarrow are you going to push up the hill first? It’s the light, empty one. 

You know, it’s interesting to note too, during the Great Depression, the Hilton chain of hotels was deeply affected by the stock market crash and Hilton couldn’t make their loan payments.

You know what saved them from financial ruin? They were so leveraged, in other words they owed so much more on their property than it was worth, that the banks couldn’t afford to bother wasting their time foreclosing on it.

The Hiltons understood the value of keeping high mortgage balances thereby keeping the risk on the banks.

Closer to the present day here...

Hurricane-ravaged homeowners in Florida, or New Orleans, or Houston would have been better off if they had removed a large portion of their equity and put it in other cash-flowing properties around the country - or they would have been better off even keeping it in a safe and liquid side fund, accessible in a time of need.

Ask yourself, if you’re a California resident, and you own a million dollar home during an earthquake in California (and you didn’t have earthquake insurance like many don’t), would you rather have your equity trapped in your home, or would you rather have more of it in income-producing properties in the Midwest and South? 

If it were trapped in the California home, your equity would be lost along with the house in the earthquake. 

What about litigation? In the event of a widespread disaster where an insurance company could be at risk with making massive payouts to a ton of homeowners, that insurance company often has incentive to come up with reasons not to pay the insurance claim - or delay paying the claim - probably at a time where you and your family are displaced and you’re staying at a modest hotel while your life is in a shambles. 

We saw this happen in national disasters recently. If your home is rendered uninhabitable in the event of a natural disaster and there’s a dispute about what exactly damaged your home - 

You know, was it the hurricane’s wind or was it the storm surge or the wind that led to the storm surge or the hurricane’s rain that led to the flood - or - what can you make a claim for then?

I mean, do you want to be in the scenario where you have to hire a lawyer to fight the insurance company? Especially at a time where you or your family are vulnerable and uprooted while you’re all staying at the Holiday Inn?

Well, if you have a lot of skin in the game - a lot of equity - you’re going to be the one most likely to have to research what legal counsel is the best and then hire, pay for, and retain legal counsel against the insurance company.

If you don’t have much skin in the game, and you’ve left the bank with the greater equity position, then the bank is going to have the incentive to want to hire the attorney.

See, with every mortgage paydown that you make, you have increased the bank’s security in this property risk and you’ve decreased your own security and decreased your own peace of mind.

More equity is more risk.

See you thought it was the opposite. Previously you thought paying down a mortgage increased your feeling of security.

Sometimes, you can get insurance to prevent risk of loss in the event of a hurricane, or an earthquake, or a fire, but see, even then, there’s no such thing as property equity insurance.

The homeowners with the least financial education are more likely to get foreclosed upon first. 

What if you’ve got a lot of equity in a property and you’re having a Cinco De Mayo party and a neighbor kid falls off your deck? Well, now the neighbor kids parents want to sue you. We live in a litigious society.

When that neighbors plaintiff attorney sees that you don’t have much low-hanging fruit as equity to go after, the lawsuit might never even come your way in the first place. 

A low equity position is an effective asset protection strategy. Make the bank share in the risk with you. Again, that’s really an example of making OTHER PEOPLE’S MONEY work for you - other people’s money - the bank’s the helping protect you. 

My home - our primary residence - has a market value of between $450K-$470K, and my mortgage loan balance at this moment is almost exactly $400K. I’ve intentionally taken proactive measures to keep my mortgage balance high and my equity position low. That’s about 15% equity in my home there - something like that. I practice what I preach. 

This limits my risk, it’s increased my liquidity so instead I can turn these equity dollars into down payments on more income property across the nation, and it increases my overall rate of return substantially.

You’ve got to think about SEPARATING EQUITY TO INCREASE your RATE OF RETURN as well.

Here’s a question for you. What do you think the rate of return from home equity was in Boston for the last 3 years? What about Seattle for the last one year? Be careful, this is a trick question. 

The truth is, it doesn’t matter where you live or how fast the homes are appreciating, the return from home equity is always the same, it is ZERO. 

We have a misconception that because our home appreciates, or our mortgage balance is going down, that the equity has a rate of return. That’s not true.

Home equity has NO rate of return. Home values fluctuate due to market conditions, not due to the mortgage balance. Your home or income property’s value fluctuates on population growth, job growth, supply vs. demand and all kinds of other factors. 

But the equity in the home has zero relation to the home’s value, it is in no way responsible for the home’s appreciation. 

Therefore, home equity simply sits idle in the home. It does not earn any rate of return. Assume you have a home worth $100,000 which you own free and clear.

Or if you have a $100,000 property with just $20,000 of equity in it, if the home appreciates 5%, you still own an asset worth $105,000 at the end of the year. Now you’ve got a 25% return on your skin-in-the-game because you’re leveraged - not just a 5% return.

The market provides the return whether equity is in there or not.

I actually cover this topic quite a bit in my first book, which was published earlier this year.

Homeowners would actually be better off burying money in their backyards than paying down their mortgages, since money buried in the backyard is liquid (assuming you can find it), and its safe (assuming no one else finds it). However, neither one is earning a rate of return. It’s actually losing value due to inflation.

I’ll be back with so much more. You’re listening to Get Rich Education.

Alright...suppose you were offered an investment that could never go up in value, but might go down. How much of it would you want? Hopefully none. Yes, that investment is home equity.

It has no rate of return, so it cannot go up in value, but it could go down in value if the real estate market declines or the homeowner experiences an uninsured loss like a natural disaster sort of calamity, or your own body or mind’s disability, or a foreclosure. 

That’s why rather than paying down any mortgage, instead, once equity accumulates, I use cash-out refinances and 1031 Tax-Deferred Exchanges to invest that dollar in more cash-flowing property. 

The return from equity is always zero so I want to reduce my equity exposure that I have in any one property. But borrowing equity out of a property incurs an interest rate expense.

But as long as I beat that interest rate expense incurred with the return from that reinvested dollar, I’m dollars ahead. 

...and if I can borrow at say, a 5% interest rate, sheesh, I’ve talked a number of times on how investing into new, cash-flowing turnkey income property with long-term fixed interest rate debt pays you five ways at the same time such that rates of return of 30% per annum are actually common.

This increases your velocity of money too - rather than letting your equity slowly cut too deep into any one property.

Accelerating loan paydowns would cut my leverage ratio. We discussed that last week here on the Get Rich Education podcast.

Let’s talk about THE COST OF NOT BORROWING (EMPLOYMENT COST VS. OPPORTUNITY COST) When homeowners separate equity to reposition it into more income property, or even a liquid, safe, side account, a mortgage payment is created on the portion that you’ve borrowed out.

The mortgage payment is considered the Employment Cost. What many people don’t understand is when we leave equity trapped in our home, we incur the same cost, but we call it a lost Opportunity Cost. The money that’s parked in your home doing nothing could be put to work earning you something.

So create arbitrage for yourself.

Learn to...effectively be your own banker. By using the principles that banks and credit unions use, you can amass a fortune. A bank’s greatest assets are its liabilities. You can substantially enhance your net worth by optimizing the assets that you already have. By being your own banker you can make millions extra.

It’s not necessary to have a large chunk of equity in your home to benefit from using your mortgage to create wealth. Many homeowners without a large equity balance have benefited by simply moving to a more strategic mortgage which allows them to pay less to their mortgage company each month, thereby enabling them to save or invest more each month.

Even if you don’t have a high equity position, if you have a 15-year loan, you can increase your monthly cash flow by switching it into a 30-year fixed amortizing loan. I once made the same mistake. I once had a 15-year loan on my own home and changed it to a 30 once I understood this.

Say the 15-year loan monthly payment is $700 more than the 30-year fixed amortizing payment - well wouldn’t I rather have that $700 either in liquidity or have the ability to put it into an income-producing investment?

On an income property if you have a 15-year loan rather than a 30-year loan - the property probably won’t cash flow either.

I actually favor interest-only loans the most. But they can still be hard to find these days.

Interest-onlys got a bad name 10-20 years ago because some people took out those loans because not paying principal was the only way they could afford a property - a property that didn’t even generate income.

I favor interest-onlys because rather than having my extra dollars go to principal, that goes right into my cash flow pocket instead.

With income property, both inflation and tenants make my mortgage principal balances erode without me having to get involved with principal paydowns which is something that only corrodes my cash flow. 

Let’s just look at another example, I gave one similar to this in my new book.

If you’re in, say the U.S., or Canada or wherever and you own a $300K home, and just for ease of numbers your home appreciates 10% and goes up to $330K over some period of time, did it matter how much equity was in the home? 

No. Again, either appreciation or loss in value has nothing to do with your skin-in-the-game - it has nothing to do with that equity inside the walls of your home, and everything to do with what’s happening outside the walls of your home…

...like demographic trends or the remaining availability of developable land in your geography, or a national tightening or easing of lending standards.

That’s what affects market value.

What if the value of your $300K home goes down to $200K in value? Well, then if you had $100K of property equity exposed, it’s all gone. So although the home fell in value 33%, your equity fell in value 100%. Now you understand why property equity is UNSAFE.

So, #1, prevent equity from accumulating, and #2, spread it around into other properties in different geographies.

When you do that, you’ve planted a small equity seed that has substantial room for growth in a new property.

So, I think big-picture, rather than retiring mortgages, I’m acquiring mortgages and integrating them into my financial plan.

Rather than fighting to get rid of mortgages, I’ve embraced them, brought them onto my side, and I don’t want them to go away. I use it as a tool. 

You can think of your mortgage as a competitor, or as a collaborator. Life is a lot more harmonious and plentiful when you turn competitors into collaborators. I don’t just enjoy collecting properties, I enjoy collecting mortgages. 

The way I’ve lived for a long time is that I don’t want to have my home or any income property paid off by the time I’m age 40, or 60, or 120.

When I pull equity from one property and use it as a down payment toward another property, I haven’t actually lost any equity (though I might have a corner chipped off for closing costs or agent commissions), but rather than losing equity, I’ve just transferred equity. It’s still my equity.

Now consider that when I pull equity from my home to put it into an income property, I typically incur a higher home mortgage payment than what I had previously. 

But as long as the difference between the new home mortgage payment amount and the old payment amount is exceeded by the positive cash flow that I receive from the new rental property, I am dollars ahead on a monthly basis.

...plus I have all the other benefits of owning a real estate portfolio that’s greater in value. 

I now have two properties to potentially appreciate in value rather than one. So before, rather than just having a $300K home, you might still have your $300K home, plus a $200K income property - for $500K of total property, plus greater tax benefits and monthly cash flow.

You know, as I go through life, I find that those with less financial education say something like, “I can’t wait until I have this property paid off.” 

Well, it’s sort of like when someone tells me they have a boatland of money saved at the bank at under 1% interest. I’m thinking, “OK, that’s good. I see potential there, now what are you going to do with it?” 

Money earning nothing at the bank is actually better than home equity because it’s more liquid. 

Understanding this stuff and putting it into practice is how I, as an investor, got ahead farther faster.

Instead of learning about how to replace garage doors or how to clean a chimney in the most efficient way, learn about big picture forces like arbitrage. leverage, cash flow, inflation, and smart equity mgmt. 

It’s going to get you ahead farther, faster. Outsource lower use tasks and replace them with higher-use tasks and you’ll be living better than you ever thought you could. 

I think some people get content being their own landlord because they just don’t know what else they could do if they would only think big picture.

So those people instead beat around in an old Ford F-150 managing their own properties. They rationalize that their life isn’t so bad compared to those without clean water in Ethiopia or Malawi. So they stay content trying to fix the furnace at the four-plex themselves. 

Maybe they’re ordering a couple meatball subs on a lunch break and then listening to sportsradio in the afternoon.

I mean, hey, if you’ve explored enough of the world to know of a different way of life and you still like the twenty-year-old Ford F-150 life where you’re managing your own property and storing canisters of touch-up paint where you’ve got al these lids labelled for the different rental units it goes with and it takes up 10% of your garage all that, then that’s fine.

As an investor, you’ve got laborers standing by just waiting to work FOR you - these laborers have names like “Tenants” “Leverage” “Arbitrage” and “Inflation”.

You need to know that there is a better, higher-use way to live. Outsource lower use tasks and replace them with higher-use tasks and you’ll be living better than you ever thought you could.

Now, if someone would ask me if I would want more property equity than I’ve currently got - someone was just looking to “gift” some equity to me.

Yeah, I’d take it, but I’d think of it as the ability to disperse and distribute seeds. Initiate that velocity and spread it into more properties.

The thing is that you can’t just understand this stuff or it isn’t going to help you.

You’ve got to do it. You must act. Mere knowledge doesn’t do you any good. 

I’ve conscientiously decided that I’m going to be abundant. I’m going to go out and control more.

There are a few limits here. You probably don’t want to lock up everything. It’s good to keep some liquidity on-hand. I’ve talked about how it’s a good idea to have 3-5% of your total real estate portfolio value in liquid funds as reserves. 

Consider that if you get underwater on your primary residence, it might make it hard for you to move if you have to move. 

If you already live where you truly want to live, why would you have to move - and why would you live anywhere other than where you want to live? You don’t follow money. You’ve made money - income streams - follow you. 

Think about your control of a property too. You know, whether you have a 5% equity position in your property or a 60% equity position or a 100% equity position in your property, you still have the same right to tear down the fence at your home or paint your home or add a carport to a rental property that you own.

Your equity position doesn’t affect your control at all. Less equity, same control.

Less property equity also increases your tax deductions because mortgage interest is typically tax deductible.

So, no one achieves financial freedom just by eliminating their debt. 

This is a central tenet to the Get Rich Education paradigm: “Financially-Free Beats Debt-Free”. 

Some people might just say, oh, eliminating the mortgage would just make me feel good. Well, consider what that good feeling is costing you. Once you’re educated, debt-free doesn’t feel so good. You’re actually taking steps away from being financially-free.

Plus, if you eliminate a mortgage payment, consider that you STILL have a monthly housing payment. You’re still going to have to pay property taxes, property insurance, pay maintenance, pay repairs, utilities, maybe pay HOA dues. 

So even complete elimination of a mortgage payment doesn’t nearly eliminate your HOUSING payment. 

Even though I have the ability to pay off my home, that would be one of the most reckless and financially uneducated things that I could think of. I’d probably have to sell some income-producing property in order to make the payoff. 

Some people say that they don’t want to pull equity from their primary residence because they say that their existing mortgage is at such a low interest rate - 5% or 4% or lower. 

Well, oftentimes, you can keep that first loan in place - not touch it - not reset its amortization schedule - not disturb that rock-bottom interest rate...I get it...my primary residence has a 3.5% interest rate on a 30-year fixed-rate mortgage.

And what you can do then is add a Home Equity Line Of Credit second mortgage onto the property so that you catalyze your velocity of money.

Homes are meant to house you & your family. Not store cash. 

When money talks, do you listen? Or do you revert to thinking about what your Dad thought - or what your Uncle thought - or revert to that Depression Era of thinking.

You know, most all of these principles that I’ve talked about earlier here - these were even true when mortgage interest rates were 16 to 18% in the early 1980s.

You can take ever great advantage of this “Financially-Free Beats Debt-Free” plan today when mortgage interest rates are comparatively anemic. 

You’ve got to go against the beliefs of traditional, old-fashioned thinking. 

What you thought was black is white. What you thought was dark is light. If you act, your financial forecast looks substantially sunnier than you though.

You won’t be able to retire if you send your money away to retire locked up in a home’s walls. Now you’ll need to spend more of your life working. 

The greatest-selling financial author of all-time, Robert Kiyosaki, who has been on the show with us here a couple times, of course - he famously said that a house - your primary residence - is not an asset. A house is not a financial asset. 

It is a liability because it takes money out of your pocket every month. As asset puts money into your pocket every month. 

So keep your skin-in-the-game in this liability - your home - to a minimum - and place that equity into assets - cash-flowing turnkey real estate in the best markets.

Your home is less of a liability to you when the equity is intelligently managed.

But importantly, you’ve got to act, rather than sit idle on this information.

These are the kind of discussions that shape you and your family’s life - that open up time for yourself and passive income for yourself…

...that got your kid the new hockey pads so that he could play on the hockey team and you had time to go watch her or him.

…that got you to Kauai when you and your family hiked that trail on the North Shore rather than deferring everything until some fictitious “someday”. 

You’ve got to ACT. 

You know the old Chinese proverb. Give a Man a Fish, and You Feed Him for a Day. Teach a Man To Fish, and You Feed Him for a Lifetime.

Well, which one sounds better - teaching a man to fish or giving a man - or woman - a fish? It is doing BOTH. That’s the abundance mentality.

So at Get Rich Education, we teach a man to fish.

We also give a man a fish, Ridge Lending Group specializes in investment property loans. They’ve helped more people realize their dreams of financial freedom through real estate than any other mortgage lender in the country.

So RidgeLendingGroup.com is in the Show Notes for you. 

Well then where do you actually find the income properties in investor-advantaged markets with in-place property management so that you can intelligently reposition your home equity if you choose to? 

We both teach a man to fish here at Get Rich Education and then we give a man a fish at GREturnkey.com - where there are - more than 10 markets that I’ve hand-selected myself - this is a lineup of markets and providers - many of whom I’ve invested in myself… 

...where you can download a report on a few investor-advantaged metros, read it at your leisure, and then that report also has the provider information so that you can follow up with them should you so choose. Often, it’s those markets in the Midwest and South. 

GREturnkey is in the Show Notes as well. So it has just never been easier. 

Thank you for being here, but again, you aren’t here for me, you are here for you.

I will be back next week to help you build your wealth. Remember, home equity is a terrible investment, and financially-free beats debt-free.

Don’t quit your day dream.

Direct download: GREepisode163_01.mp3
Category:general -- posted at: 6:27am EDT

#162: Learn about leverage ratios, how leverage can grow your wealth using other people’s money, and how to be protected from leverage risk.

Keith provides the most important takeaways from the New Orleans Investment Conference.

Next, Clayton Morris, former news anchor on the number one cable news show in the world, and host of the podcast Investing in Real Estate with Clayton Morris, talks to us about his wealth building realization. 

Clayton explains what the Freedom Number is and how it relates to building wealth using buy-and-hold strategies.

Keith and Clayton discuss one of the best things that can be done to make a real estate passive income stream more durable.

Want more wealth?

1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2)    Actionable turnkey real estate investing opportunity: GREturnkey.com

3)    Read my new, best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

03:00  Understanding leverage ratios.

07:34  Hedging against leverage risk.

10:57  Takeaways from the New Orleans Investment Conference.

15:50  Interview with Clayton Morris begins.

18:42  Clayton’s buy-and-hold realization.

21:15  You don’t have to reinvent the wheel.

22:48  Don’t fall in love with real estate; it’s just a vehicle.

26:46  Why C class properties are great investments.

31:58  How to find your Freedom Number at MorrisInvest.com.

35:07  Clayton’s strategy for building wealth.

39:28  How the Freedom Number relates to wealth building.

42:10  What makes a passive income stream durable?

Resources Mentioned:

MorrisInvest.com

Investing In Real Estate podcast  

RidgeLendingGroup.com

CorporateDirect.com

GetRichEducation.com

GREturnkey.com

Direct download: GREepisode162.mp3
Category:general -- posted at: 6:27am EDT

#161: What makes you weird makes you successful. Embrace what makes you “abnormal”.

Why? Because being wealthy isn’t normal.

Inflation transfers wealth from lenders to borrowers. Therefore, be a smart borrower.

Next, Rich Dad Advisor Garrett Sutton joins us with updates to protect yourself and your real estate with Limited Liability Companies (LLCs). His website is CorporateDirect.com.

We learn about common asset protection mistakes. Garrett tells us why flip properties and buy-and-hold properties should be in separate LLCs, and more.

When you establish a Wyoming LLC which presides over your other LLCs, you get better protection and you reduce your audit risk.

LLCs vs. LPs also discussed.

Want more wealth?

1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book

2) Actionable turnkey real estate investing opportunity: GREturnkey.com

3) Read my new, best-selling paperback: getbook.at/7moneymyths

Listen to this week’s show and learn:

00:50  What makes you weird? Embrace it. That’s often what makes you wealthy.

05:54  The New Orleans Investment Conference.

07:37  I'm the newest writer at Forbes.

09:55  Inflation transfers wealth from lenders to borrowers.

12:57  Garrett Sutton interview begins.

15:05  Common asset protection mistakes.

16:37  Buy-and-hold vs. flipping and asset protection.

18:55  Does every property need its own LLC?

21:04  LLCs in multiple U.S. states. What makes Wyoming special.

24:17  Reducing your administrative time in maintaining your LLCs.

24:50  Lower your audit risk.

26:33  California.

29:58  LLCs vs. Limited Partnerships (LPs).

32:41  Living Trusts.

34:34  New IRS rule to conform with by December 31st.

Resources Mentioned:

CorporateDirect.com | 1-800-600-1760

RidgeLendingGroup.com

GetRichEducation.com

GREturnkey.com

Direct download: GREepisode161.mp3
Category:general -- posted at: 6:27am EDT

#160: You want cash flow that is stable and durable. Today’s guests, Terry Kerr and Liz Nowlin from Mid South Home Buyers, tell us how both they and Memphis, TN delivers.

We discuss the 19 due diligence questions that you need to ask when you’re vetting a turnkey real estate investing provider.

When you purchase real estate “turnkey”, the property is already renovated and tenanted. That way, your provider maintains more risk before you purchase the property.

Learn about the neighborhood “sweet spot”, little-known differences between a $125,000 property and a $62,000 property, and the importance of in-house property management.

Find out how to avoid lengthy vacancies. Does your provider mark up materials?

Learn about when your provider makes guarantees about your property’s occupancy and renovation.

Want more wealth?

  1) Grab my free E-book and Newsletter at: GetRichEducation.com  

  2) Actionable turnkey real estate investing opportunity: GREturnkey.com

  3) Read my new, best-selling paperback: GetRichEducation.com/Book

Listen to this week’s show and learn:

02:14  Turnkey defined.

04:52  Terry Kerr and Liz Nowlin interview begins.

08:01  Does your turnkey provider actually own the property?

12:13  Renovation quality.

15:12  $125,000 property vs. $62,000 property.

17:35  Neighborhood sweet spot.

19:18  Only 1 in 6 renter applicants are approved.

20:34  In-house property management.

24:37  Avoiding lengthy vacancies. Application fees.

28:21  Marking up materials.

29:50  Occupancy guarantee and renovation guarantee.

32:52  How your PM’s in-house handymen can be good or bad.

Resources Mentioned:

MidSouthHomeBuyers.com

RidgeLendingGroup.com

GetRichEducation.com

GREturnkey.com

Direct download: GREepisode160_1.mp3
Category:general -- posted at: 6:27am EDT

#159: Negotiation is a substantial part of real estate and investing. We discuss exactly what you do when the tenant wants to pay the rent late.

I tell you exactly how I negotiated the price and terms on the very home that I live in today!

Then our guest, Kwame Christian, Founder of the American Negotiation Institute joins us. He defines negotiation as “A conversation where somebody wants something.”

Three uses of negotiation: 1) Use offensively. 2) Use defensively. 3) Strengthening relationships.

We discuss how you negotiate in a way where you keep a strong relationship with the other party, rather than alienate them.

We talk about how to motivate your Property Manager to work hard on your behalf.

In negotiation, let other party speak first. Let them make the first offer, except when you have more information. We discuss midpoint negotiation.

“Anchoring” is an important part of negotiation psychology. This can help you get a better deal.

Kwame and I discuss what people will pay what an item is worth to them, not you. But what about sentimental value and sunk cost?

In a real estate sellers’ market, should you ask for more than you expect, or only what you expect?

Learn about the negotiation techniques of “log rolling”, multiple offers, and “always get the last concession”.

We discuss introverts and negotiation. Negotiation is a learned skill; it is not innate.

Learn exactly what to do to become a better negotiator in just the next 24 hours.

In negotiation, where do ego and emotion fit in?

Want more wealth?

  1) Grab my free E-book and Newsletter at: GetRichEducation.com  

  2) Actionable turnkey real estate investing opportunity: GREturnkey.com

  3) Read my new, best-selling paperback: GetRichEducation.com/Book

Listen to this week’s show and learn:

01:22  Negotiation technique for a late-paying tenant: say these 7 magic words.

03:38  How I negotiated the price and terms on the exact home that I still live in today!

08:49  Kwame Christian interview begins.

10:01  Definition of negotiation.

11:38  Three uses of negotiation: 1) Use offensively. 2) Use defensively. 3) Strengthening relationships.

13:48  How to motivate your Property Manager to work hard on your behalf.

16:40  Let the other party speak first.

19:00  Midpoint negotiation. The psychological principle of “anchoring”.

25:19  People will pay what an item is worth to them, not you.

27:18  Sentimental attachments and sunk cost.

29:50  In a real estate sellers’ market, should you ask for more than you expect, or exactly what you expect?

31:33  Negotiation technique of “log rolling” (presenting a seller with multiple offers).

32:43  Always get the last concession.

34:55  Don’t be a “nibbler”.

36:11  Introverts and negotiation.

38:49  Negotiation is a learned skill; it is not innate.

40:30  Do this in the next 24 hours in order to be a better negotiator.

45:08  Ego and emotion in negotiation.

46:19  Hotel room negotiation technique.

Resources Mentioned:

Negotiate Anything podcast

Negotiation Guide

RidgeLendingGroup.com

MidSouthHomeBuyers.com

GetRichEducation.com

GREturnkey.com

Direct download: GREepisode159.mp3
Category:general -- posted at: 6:27am EDT

#158: Generate $5,000 to $15,000 monthly cash flow from one single-family home converted into an Assisted Living Home (ALH).

The demographic trend is your friend. Every year 1.4 million Americans are turning age 85.

To invest in ALHs, begin with the property’s location. 

We discuss exact numbers on how a Profit & Loss Statement differs from that of residential cash-flowing turnkey property.

You optimize income by attracting “Private Pay” residents, not Medicare/Medicaid residents. We discuss how.

We discuss how an ALH Manager’s role differs from that of a residential Property Manager. We discuss.

Risks and licensing requirements might not be onerous, yet they’re barriers of entry to others.

Financing options are quite favorable if you want to begin an ALH.

Gene Guarino, Founder of the Residential Assisted Living Academy, is our guest today. As a gift, he offers us a FREE 6-Part Residential Assisted Living Training.

Gene has also founded the upcoming Residential Assisted Living National Convention. The inaugural annual event takes place Nov. 10-11 in Scottdale, AZ.

Want more wealth?

  1) Grab my free E-book and Newsletter at: GetRichEducation.com  

  2) Actionable turnkey real estate investing opportunity: GREturnkey.com

  3) Read my new, best-selling paperback: GetRichEducation.com/Book

Listen to this week’s show and learn:

01:33  Negotiation.

02:56  Scarcity vs. abundance.

06:10  No paycheck can buy yesterday.

07:27  Gene Guarino interview begins.

10:10  Don’t move Mom into a hotel, but rather a small Assisted Living Home (ALH).

11:05  Location.

16:13  Options: You could own the real estate and lease the ALH business to others, the “Golden Girls” model.

18:36  Retrofitting a home for seniors. What physical amenities are needed?

20:54  Zoning and HOAs.

22:01  Monthly Profit & Loss Statement.

26:52  How to attract the more lucrative “Private Pay” residents.

31:06  What does an ALH Manager do?

32:47  Gene & his wife spend 5-10 hours / week.

34:48  Risks, licensing, documentation.

37:59  Financing options.

41:02  Professional vs. casual approaches to investing.

42:28  Getting the first resident in your ALH.

45:05  ROI = Return On Involvement.

47:44  Gene offers you a gift: FREE 6-Part Residential Assisted Living Training.

48:20  Gene founded the upcoming Residential Assisted Living National Convention in Scottsdale, AZ on November 10th and 11th.

Resources Mentioned:

FREE 6-Part Residential Assisted Living Training

Residential Assisted Living National Convention : ralnatcon.com

RidgeLendingGroup.com

MidSouthHomeBuyers.com

GetRichEducation.com

GREturnkey.com

Direct download: GREepisode158_1.mp3
Category:general -- posted at: 6:26am EDT

#157: With steadier cash flows than residential real estate, 100% occupancy, zero chance of tenant damage to your property, appreciation potential, and a low cost of entry, anyone can own part of their own cacao (chocolate) farm in Latin America.

Investors like you can own individually deeded ½ acre parcels of cacao trees, turnkey managed, and expect to yield cash flow on an annual basis from the harvest and sale of cacao, chocolate and its related products.

David Sewell, Founder of the Belize Cacao Consortium (BCC), talks with me about the field trip that I recently took in Belize. I learned about investing in cacao “from seed to chocolate bar”.

Supply vs. Demand: The world has less & less arable land, and more and more mouths to feed. High-end specialty cacao (a.k.a. “Fine flavored cacao”) has a demand that far exceeds supply. Belize has long been known as a cacao-producing region.

The BCC brings needed professional agronomy and soil science to add value to cacao farm operations.

We discuss the upsides and risks of owning your own producing cacao parcels.

Want more wealth?

  1) Grab my free E-book and Newsletter at: GetRichEducation.com  

  2) Actionable turnkey real estate investing opportunity: GREturnkey.com

  3) Read my new, best-selling paperback: GetRichEducation.com/Book

Listen to this week’s show and learn:

02:50  Renowned investor Jim Rogers says that agriculture is going to be the big thing over the next 20 years.

08:03  Why Belize? Why cacao?

11:29  Bringing professional agronomy and soil science to add value to cacao operations.

12:50  Treating the Mayan workers well.

16:20  Planting raw land parcels with cacao trees.

19:55  Three pillars of sustainability: economic, social, environmental.

23:27  Risks.

31:40  Predictability of income.

34:05  Projected yield of 11-13% annually. First cash flow expected in 15-18 months, annual thereafter.

36:35  Exit strategy. Legacy.

39:02  Visitor field trips to the agricultural fields.

41:11  Available inventory.

42:50  Professionalism.

Resources Mentioned:

GetRichEducation.com/Chocolate

GetRichEducation.com/Coffee

RidgeLendingGroup.com

MidSouthHomeBuyers.com

GetRichEducation.com

GREturnkey.com

Direct download: GREepisode157.mp3
Category:general -- posted at: 6:26am EDT

#156: Unemployable by choice, Nick Bond, age 22, is a recent college graduate that is building his own real estate business rather than getting a job.

School grades aren’t any more predictive of success than rolling a pair of dice. I discuss Boston College research that supports this.

Valedictorians don’t become billionaires. Millionaires have an average college GPA of 2.9.

Is it worth it to go to college? College is more expensive in the U.S. than anywhere else in the world. Yet at the same time, the value of a college degree has dropped.

Once you got out of school, you found yourself “making things up” as you go. Later, you find out that everybody is “making things up”.

Today’s guest, Nick Bond isn’t taking the j-o-b route that his friends are. He was influenced by his parents to be more entrepreneurial. Nick has begun raw land investing / flipping.

Get control of both your time and your geography. Live a cloud-based life through Google Drive and Dropbox. Read your monthly real estate property management statements from wherever you choose to live, and enjoy the passive cash flow.

Want more wealth?

  1) Grab my free newsletter at: GetRichEducation.com  

  2) For actionable turnkey real estate investing opportunities: GREturnkey.com

  3) Read my new, best-selling book: GetRichEducation.com/Book

Listen to this week’s show and learn:

01:32  Why valedictorians don’t become great financial successes.

02:48  Millionaires, with 2.9 average GPAs, are known for grit.

04:19  Is it worth it to go to college at all?

06:20  Unemployed vs. Unemployable. The difference? Options.

07:06  Nick Bond interview begins.

08:50  Nick’s parents wanted him to go to college more for the experience than the education.

10:43  Does Nick even want a work-a-day job?

11:40  Nick’s Dad told him not to get a real job!

12:42  What are Nick’s friends doing? They’re making $40K - $90K.

14:27  Student loan debt.

15:09  Home ownership.

16:55  What Nick does today: land flipping / investing.

23:00  Investor Summit At Sea.

25:02  Seeking freedom, giving back to community.

26:34  The Land Geek.

28:17  Business systems.

29:38  Qualifying for your home with your transcript and diploma.

31:04  Nick’s website: www.reinvestrategy.com.

34:01  The value in Get Rich Education’s free newsletter. Get it at GetRichEducation.com

Resources Mentioned:

College Costs More In America Than Anywhere Else

RidgeLendingGroup.com

NoradaRealEstate.com

MidSouthHomeBuyers.com

GetRichEducation.com

GREturnkey.com

Direct download: GREepisode156.mp3
Category:general -- posted at: 6:24am EDT

#155: Do what Amazon does. That is what you are doing when you invest passively in income property. But it’s easier than building a business like Amazon. 

Like Amazon Prime, your RE portfolio has a recurring income stream. Amazon provides society with non-discretionary items like household goods; RE investors provide society the non-discretionary household itself.

Today’s guest, Abhi Golhar of Real Estate Deal Talk, emphasizes why cash flow is king today. He is exiting many flips in order to purchase cash-flowing SFHs and multifamilies. He tells us why.

Abhi talks about “Rich Dad, Poor Dad”, how to select a mentor, and much more.

Abhi and I discuss real estate trends via geographics, demographics, and psychographics.

Want more wealth?

  1) Grab my free newsletter at: GetRichEducation.com  

  2) For actionable turnkey real estate investing opportunities: GREturnkey.com

  3) Read my new, best-selling book: GetRichEducation.com/Book

Listen to this week’s show and learn:

00:50  Real estate investing is like Amazon’s success model, only easier. Here’s why.

04:38  “Rich Dad, Poor Dad”.

07:42  Buying and selling cars on eBay.

10:13  Following and choosing mentors.

18:37  The durability of real estate as it relates to caring for your body.

21:22  Freedom.

23:11  Real estate appreciation the last 5+ years.

26:34  Real estate geographics, demographics, and psychographics.

33:22  Abhi is exiting flips and purchasing buy-and-hold income property. Cash flow is king.

35:26  Responding to listener feedback, Get Rich Education’s new episodes will begin publishing four days sooner: Mondays hereafter, rather than Fridays.

Resources Mentioned:

RealEstateDealTalk.com

RidgeLendingGroup.com

NoradaRealEstate.com

MidSouthHomeBuyers.com

GetRichEducation.com

GREturnkey.com

Direct download: GREepisode155_1.mp3
Category:general -- posted at: 6:24am EDT

#154: After you have 10 financed residential properties and you want more, we discuss your options.

These Specialty Loan Products are exciting. Example: 25% down, 5.9% interest rate today, 30-year amortization.

We learn this today from Ridge Lending Group President and CEO Caeli Ridge after she first reviews qualification criteria for the first 10.

I also discuss a simple way for you to increase your Cash-On-Cash Return with no extra money out of your pocket.

We discuss what’s changed with qualification requirements for your debt-to-income ratio, reserves, LLCs, liquidity, cash-out refinance limits and more.

I bring you today’s show from San Jose, Costa Rica.

Want more wealth?

  1) Grab my free newsletter at: GetRichEducation.com  

  2) For actionable turnkey real estate investing opportunities: GREturnkey.com

  3) Read my new, best-selling book: GetRichEducation.com/Book

Listen to this week’s show and learn:

01:17  How to increase your Cash-On-Cash Return.

03:42  High closing cost states: TX, FL, northeastern states. Low closing costs: MO, IN, AZ, AL.

07:11  Conventional loans: DTI 50% max., LLC change, liquidity, reserves.

15:14  Interest rates.

17:02  Cash-out refinance limits.

21:50  Specialty Loan Products (beyond 10 financed properties): 25% down, 30-year fixed amortization, 5.9% interest rate today (wow!), no limit to the number of properties, discount points.

27:18  Foreign buyers: 7.99% rate today, 5-year ARM, 30-year amortization.

29:03  Your tax return.

30:31  Today’s lending environment.

32:43  RidgeLendingGroup.com specializes in your income property loan qualification.

Resources Mentioned:

RidgeLendingGroup.com

NoradaRealEstate.com

MidSouthHomeBuyers.com

GetRichEducation.com

GREturnkey.com

Direct download: GREepisode154.mp3
Category:general -- posted at: 6:24am EDT

#153: Where are real estate prices headed? I discuss this with Kathy Fettke of The Real Wealth Network. Demand still exceeds supply in many places.

But in coastal areas, affordability problems could be a constraint on future appreciation.

The latest Case-Shiller 20-City Index shows 5.7% year-over-year housing price growth. Though this is surely an imperfect metric, it is a historically sustainable growth rate. It is also supported with responsible lending.

Kathy & I have each invested through the 2008-2009 Mortgage Meltdown and Great Recession. We discuss how that shapes our investor behavior.

I also discuss how natural disasters like hurricanes can pummel those that have a lot of equity in their properties.

I bring you today’s show from Punta Gorda, Belize.

Want more wealth?

  1) Grab my free newsletter at: GetRichEducation.com  

  2) For actionable turnkey real estate investing opportunities: GREturnkey.com

  3) Read my new, best-selling book: GetRichEducation.com/Book

Listen to this week’s show and learn:

01:05  Hurricanes: how to protect your real estate.

05:33  When a loan is made, the borrower is in more control than the lender.

10:14  Supply vs. Demand.

12:56  Builders aren’t building the most in-demand housing types.

13:20  Housing Affordability Index (HAI).

16:07  30-40% of the USA is overpriced. 60%+ is not.

18:28  Annual price appreciation is 5.7% per the latest Case-Shiller numbers.

20:05  Recency bias.

25:25  Holding Kathy & I accountable for what we said 19 months ago. The Fed, Trump.

31:25  Higher interest rates? Apartment buildings will be riskier than single family homes.

34:55  Best places for real estate investors today.

38:32  Texas.

41:02  More renters and fewer buyers mean that new RE investors are needed.

44:17  Trump will protect the mortgage interest deduction and 1031 Exchange.

Resources Mentioned:

RealWealthNetwork.com

RidgeLendingGroup.com

NoradaRealEstate.com

GetRichEducation.com

GREturnkey.com

Direct download: GREepisode153.mp3
Category:general -- posted at: 6:23am EDT

#152: I recently made a real estate market field trip to St. Louis, Missouri. As one of the 20 largest U.S. metropolitan areas, its job growth and diversity of business sectors support durable rental income streams for real estate investors.

Typical price points are $1,100 rents and $110,000 purchase prices for single-family income property in St. Louis.

St. Louis has city housing inspectors - upside: this supports neighborhood condition, downside: they must be complied with.

Kansas City, Missouri is also experiencing steady job growth amidst varied employment sectors. Visitors to the city remark about the area's cleanliness.

Both St. Louis and Kansas City have investor-advantaged rental neighborhoods that consist of about 65% owner-occupants. This promotes good curb appeal and safety.

Missouri has Landlord-Tenant laws which favor the investor (landlord) more than the tenant.

We’re discussing investment in turnkey income property: typically single-family homes that are already renovated, tenanted, and under management on that day that you buy.

Learn more at: GetRichEducation.com/StLouis and GetRichEducation.com/KansasCity.

Want more wealth?

  1) Grab my free newsletter at: GetRichEducation.com  

  2) For actionable turnkey real estate investing opportunities: GREturnkey.com

  3) Read my new, best-selling book: GetRichEducation.com/Book

Listen to this week’s show and learn:

00:57  Apartment building investors have more interest rate risk than 1-4 family investors.

07:32  St. Louis, Missouri is a Top 20 U.S. metro.

09:48  St. Louis’ technology and medical sectors.

11:01  Not many St. Louis turnkey operators. City inspectors.

14:30  Neighborhood safety.

16:08  Tenant income $40,000 to $55,000 in St. Louis.

17:10  1% rent-to-value ratio.

18:44  Renovation extent.

23:30  Kansas City overview and their substantial job growth.

26:50  Relatively low property taxes.

27:03  Missouri Landlord-Tenant Law: 30-day evictions.

27:31  Kansas City cleanliness.

35:04  Investors are assigned an “Investor Concierge” as your one point of contact.

Resources Mentioned:

GetRichEducation.com/StLouis

GetRichEducation.com/KansasCity

RidgeLendingGroup.com

NoradaRealEstate.com

GetRichEducation.com

GREturnkey.com

Direct download: GREepisode152.mp3
Category:general -- posted at: 6:23am EDT

#151: Your job feels bad. It makes you wonder where your time went. Keith tells you why your job feels so bad, gives you possible solutions, and reminds you “where your time went”.

Your job feels worse than ever due to economic, demographic, and social reasons. This is supported by data from the Bureau Of Labor Statistics, the Census Bureau, Bloomberg, and elsewhere. We explore.

GRE listener Douglas Orr tells you how he built enough passive income to leave his job in just three years by quickly accumulating 50 rental doors. He respects his time by outsourcing property management.

Douglas began RE investing by pulling $20,000 out of his 401(k) to buy a duplex and triplex.

Want more wealth?

  1) Grab my free newsletter at: GetRichEducation.com  

  2) For actionable turnkey real estate investing opportunities: GREturnkey.com

  3) Read my new, best-selling book: GetRichEducation.com/Book

Listen to this week’s show and learn:

02:01  Keith likes the new Apple AirPods wireless headphones.

03:46  “Where did your time go?” Keith answers.

05:58  Why your job feels so bad.

14:58  Straight out of high school, GRE listener Douglas Orr began working in an automotive factory. He lost control of his time.

16:29  Turning point: pulling $20,000 from his 401(k) to buy a duplex and triplex.

20:05  Beating the “one percent” target.

22:00  Managing managers less than four hours per week.

24:50  Douglas built his portfolio fast through shrewd equity management. He tells how.

27:42  Firing your boss.

29:53  Quitting your job: supportive family?

31:35  Caution: don’t do THIS before quitting your job.

34:26  You quit your job? Then what do you do all day?

37:28  Controlling $100 million worth of real estate.

Resources Mentioned:

Douglas Orr: greensburg.alpha@gmail.com

Douglas Orr on Facebook

Bureau Of Labor Statistics

RidgeLendingGroup.com

NoradaRealEstate.com

MidSouthHomeBuyers.com

GetRichEducation.com

GREturnkey.com

Direct download: GREepisode151.mp3
Category:general -- posted at: 6:23am EDT

#150: Giant mistake: investing in real estate only in your home market.

You should be invested in at least 3 different geographic RE markets. This also how you can get a good mix of appreciation and cash flow over time.

Volatility hurts your portfolio more than you think. Keith discusses two reasons why you will be in a more volatile environment in coming years: 1) Donald Trump, 2) Interest rates.

Even if your home is paid off, you still have a payment. It’s an opportunity cost payment. You aren’t aware of it because you can’t see it.

Do you live below your means or do you expand your means? Keith gives several real-life examples. You just can’t shrink your way to wealth.

Keith brings you today’s show from Anaheim, California.

Want more wealth?

  1) Grab my free newsletter at: GetRichEducation.com  

  2) For actionable turnkey real estate investing opportunities: GREturnkey.com

  3) Read my new, best-selling book: GetRichEducation.com/Book

Listen to this week’s show and learn:

01:28  Volatility hurts you: 1) Donald Trump. 2) Interest rates.

05:16  Diversify: invest in RE in at least three metro markets.

07:37  ROTI: Return On Time Invested.

09:24  Invest between the Appalachians and the Rockies in SFHs just below the median purchase price.

11:00  Appreciation vs. Cash Flow.

12:07  How will 10 SFHs move you toward financial freedom?

17:48  Even if your home is paid off, you still have a payment.

20:24  “Live where you want to live and invest where the numbers makes sense.”

21:50  Tax-friendly states.

23:32  Examples: Living Below Your Means vs. Expanding Your Means.

28:51  When does your life really begin?

Resources Mentioned:

Article: How To Turn $100K Into $300K In Five Years

Article: You Can’t Shrink Your Way To Wealth

RidgeLendingGroup.com

NoradaRealEstate.com

MidSouthHomeBuyers.com

GetRichEducation.com

GREturnkey.com

Direct download: GREepisode150.mp3
Category:general -- posted at: 6:23am EDT

#149: When real estate markets heat up, some investors are tempted to invest in tiny towns with few industries.

With 700,000 in the metro area, Little Rock, Arkansas is substantially larger.

Little Rock's diversity of industry includes government, health care, education, and military.

Arkansas could be the most landlord-friendly of all 50 states. Landlords aren’t even obligated to make repairs.

Little Rock Turnkey rehabilitates a property, places a qualified tenant, puts the property under management, and then sells it to you. It is expected that this “turnkey” property produces cash flow for you on Day 1.

Want more wealth?

  1) Grab my free newsletter at: GetRichEducation.com  

  2) For actionable turnkey real estate investing opportunities: GREturnkey.com

  3) Read my new, best-selling book: GetRichEducation.com/Book

Listen to this week’s show and learn:

02:22  Pay attention to your monthly Property Manager statement.

05:08  Helping your profits: estimates vs. quotes.

07:37  Jeremy Veldman interview begins.

09:37  Little Rock’s job sectors.

11:00  Is Arkansas still the most landlord-friendly of all 50 states? 15-day evictions.

16:35  Single-family houses, typically brick houses of 3 BR / 2 BA. Renovation extent explained.

19:14  Tenant-supplied appliances.

20:41  3515 Green Drive: $1,050 projected rent, $105,000 purchase price, 1,570 sq. ft.

23:56  Rent-to-value ratio. The next most important numbers are property tax, mortgage interest rate.

25:30  Tenant profile.

28:52  Affordability: Arkansas is #1.

31:55  Property management.

33:47  Neighborhood character: 2/3rds owner-occupant.

Resources Mentioned:

LittleRockTurnkey.com

info@memphisturnkey.com

NoradaRealEstate.com

MidSouthHomeBuyers.com

GetRichEducation.com

GREturnkey.com

 

Direct download: GREepisode149_1.mp3
Category:general -- posted at: 6:23am EDT

#148: Do markets feel frothy to you?

Real estate, stocks, corporate valuations, and even the values of major pro sports franchises have risen substantially. Keith explains why this matters less than you think.

You learn about some little-known advantages of investing in single-family income property rather than apartment buildings.

Brien Lundin, host of the New Orleans Investment Conference, joins Keith. Keith will be in New Orleans for the conference this October 25th - 28th. Speakers include Tucker Carlson, Doug Casey, Peter Schiff, and Robert Kiyosaki.

Brien tells us about the role that gold plays in the world today. Keith tells you how much of his net worth is invested in precious metals.

Want more wealth? Visit:

1) GetRichEducation.com to grab our free newsletter.  2) GREturnkey.com for actionable turnkey real estate investing opportunities.

Listen to this week’s show and learn:

00:49  Frothy markets.

02:08  The median sales price of existing US homes is $264,000.

05:59  Single-family income properties vs. apartment buildings.

15:35  Keith tells you how much precious metal he owns.

23:08  Brien Lundin Interview begins. Gold’s role in the world today.

28:44  Cryptocurrency.

30:55  Silver.

32:17  Why Brien thinks gold prices will soon rise.

Resources Mentioned:

NewOrleansConference.com

NoradaRealEstate.com

MidSouthHomeBuyers.com

GetRichEducation.com

GREturnkey.com

 

Direct download: GREepisode148_1.mp3
Category:general -- posted at: 6:22am EDT

#147: You’re going to live longer than your parents and ancestors. Half of today’s retirees will live into their 90s. That’s good...if your finances can support your lifestyle.

Patrick Donohoe, Founder and CEO of Paradigm Life, is our guest today.

Debt is vital to wealth creation. We tell you why.

Inflation vs. Deflation: this “Economic Tug Of War” is discussed. It’s deflationary globalization versus inflationary dollar-printing.

Patrick tells us how to bank outside the banking system via the Perpetual Wealth Strategy.

Grab Get Rich Education’s new book at GetRichEducation.com/Book

Want more wealth? Visit: 1) GetRichEducation.com to grab our free newsletter.  2) GREturnkey.com for actionable turnkey real estate investing opportunities.

Listen to this week’s show and learn:

01:00  “Formal education will make you a living. Self-education will make you a fortune.” -Jim Rohn

06:08  Patrick Donohoe interview begins.

09:24  Retirement: is the very idea “anti-life”?

12:36  Buying time vs. selling time. Wall Street vs. Main Street.

16:06  Hanging around the same people equals the same results.

17:26  Debt.

25:17  Inflation vs. Deflation.

34:26  How to “be your own bank”.

Resources Mentioned:

ParadigmLife.net

NoradaRealEstate.com

MidSouthHomeBuyers.com

GetRichEducation.com

GREturnkey.com

 

Direct download: GREepisode147.mp3
Category:general -- posted at: 6:22am EDT

#146: Debt is good. Debt is bad. Which type is good and which type is bad?

When your tenant is paying your debt for you, that’s good debt. When you have consumer debt, that’s usually bad. But Keith contends that consumer debt can almost be good for some savvy investors that use debt for arbitrage.

If you could have gotten a 3% loan on your car, but instead you chose to pay cash, then you’re probably paying an opportunity cost.

In real estate, the return from equity is always zero. Debt replaces that zero-return equity. But would you ever pay all-cash for your property? Keith is a “leverage guy”, but yet he gives reasons for when and why you would want to pay all-cash.

Would you borrow $100K from 0% APR credit cards to create arbitrage? Some do.

Mortgages, Home Equity Lines Of Credit, Federal Funds Rates, automobile loans, student loans, and credit card debt are all discussed.

Ultimately, you would rather be financially-free rather than debt-free.

Grab Get Rich Education’s new book at GetRichEducation.com/Book

Want more wealth? Visit: 1) GetRichEducation.com to grab our free newsletter.  2) GREturnkey.com for actionable turnkey real estate investing opportunities.

Listen to this week’s show and learn:

01:25  “Eliminate all debt” is just too simple to be true.

04:31  Why pay down mortgage principal at all?

05:50  A mortgage is a one-way street. HELOCs are a two-way street.

08:06  Robert Kiyosaki clip.

11:04  Consumer debt and arbitrage.

12:30  Increasing interest rates.

13:25  Higher FICO scores and Debt-To-Income Ratio limits.

15:05  Interest rates have never been this low while the job market is at full capacity.

16:29  Credit card arbitrage.

23:15  Here’s when and why to pay all-cash for a property.

26:10  Ryan Daniel Moran clip.

Resources Mentioned:

Consumers May Get Credit Score Boost

DTI Change From 45% To 50% Maximum

NoradaRealEstate.com

MidSouthHomeBuyers.com

GetRichEducation.com

GREturnkey.com

 

Direct download: GREepisode146.mp3
Category:general -- posted at: 6:22am EDT

#145: Financial advisors sell stocks. Buy-and-hold stock investing doesn’t create wealth, but financial advisors create the illusion that they do.

Today’s guest, Ntellivest’s Brent Sutherland, is a financial advisor that began successfully investing in cash-flowing real estate with 8 single-family properties.

Brent pulls back the curtain on what’s going on “behind the scenes” with financial advisors and their biased “advice”.

Really...what’s wrong with stocks?

Keith adds content about how and why buy-and-hold stocks don’t create wealth with five reasons: inflation, emotion, taxes, fees, and volatility. This is partly due to secondary market dilution.

Grab Get Rich Education’s new book at: GetRichEducation.com/Book

Want more wealth? Visit: 1) GetRichEducation.com to grab our free newsletter.  2) GREturnkey.com for actionable turnkey real estate investing opportunities.

Listen to this week’s show and learn:

01:12  Why live anything less than a great life?

03:04  Hordes of people still believe that buy-and-hold stocks create wealth. What’s wrong with stocks?

05:41  The Nixon Shock, ERISA, and 1980s tax cuts.

10:52  Don’t build a budget.

16:00  Financial advisors’ pay structures don’t allow for recommending real estate.

17:27  Capital gains vs. income.

20:51  Can financial advisors get paid on performance?

24:29  Timing the market and emotion.

27:16  Real estate investing is not an “alternative”.

32:03  Your first income property cash flow check changes your life. Brent's $250-$300 monthly per property.

33:40  ROI.

38:06  Volatility.

41:32  Diversification.

43:34  401(k)s.

45:57  Today’s stock market valuations.

48:12  When do you fire your financial advisor?

Resources Mentioned:

Ntellivest.com

NAPFA.org

NoradaRealEstate.com

MidSouthHomeBuyers.com

GetRichEducation.com

GREturnkey.com

 

Direct download: GREepisode145.mp3
Category:general -- posted at: 6:22am EDT

#144: In an economic crash, a great place to be positioned is in low-cost housing within a diversified metro market like Indianapolis, Indiana.

Learn more at: GetRichEducation.com/Indy

Indianapolis has a remarkable combination for investors: investor-advantaged property, a diversified economy, population growth, low unemployment, a business-friendly environment, low-cost housing, stable Indiana state finances, and more.

Indianapolis’ business drivers are in some of the most diverse and necessary sectors: healthcare, finance, technology, education, and more.

Amazon has set up an enormous distribution center in Indianapolis due to its central geographic location.

Today’s guest offers turnkey cash-flowing real estate in Indianapolis.

Grab Get Rich Education’s new book at GetRichEducation.com/Book

Want more wealth? Visit: 1) GetRichEducation.com to grab our free newsletter.  2) GREturnkey.com for actionable turnkey real estate investing opportunities.

Listen to this week’s show and learn:

00:45  In an economic crash, low-cost housing can be a safe place to be invested.

06:42  Our guest was led to Indianapolis for: cash-flowing real estate, a diversified economy, population growth, low unemployment, a business-friendly environment, low-cost housing, and stable Indiana state finances, and more.

08:42  Indianapolis’ business drivers.

13:34  The State Of Indiana has a AAA credit rating and budget surpluses to help support business.

19:06  What if there’s an economic crash soon?

24:07  Foreign buyers in Indianapolis.

28:40  Rent-to-value ratios in Indianapolis.

29:50  Vacancy rate.

32:22  Making a real estate field trip to Indianapolis.

Resources Mentioned:

GetRichEducation.com/Indy

Harvard Joint Center for Housing Studies

Pew Research Center

NoradaRealEstate.com

MidSouthHomeBuyers.com

GetRichEducation.com

GREturnkey.com

 

 

Direct download: GREepisode144.mp3
Category:general -- posted at: 6:21am EDT

#143: You’re entitled to a great gift from the IRS - lifetime tax-deferral so that you never have to pay capital gains tax on the sale of your investment real estate.

With a 1031 Tax-Deferred Exchange, you can infinitely defer your: federal capital gains tax, state capital gains tax, and depreciation recapture.

From the sale of your property, you have 45 days to identify, and 180 days to close upon your replacement property. Details in-episode.

1031s are only for investment property. They’re amazing wealth-building tools, but you must follow strict rules.

Graham Parham of Highlands Residential Mortgage joins Keith later in the show to discuss lending obstacles with 1031 Exchanges.

Grab Get Rich Education’s new book at GetRichEducation.com/Book

Want more wealth? Visit: 1) www.GetRichEducation.com to grab our free newsletter.  2) www.GREturnkey.com for actionable turnkey real estate investing opportunities.

Listen to this week’s show and learn:

02:12  Normally, upon the sale of income property, one must pay federal capital gains tax, state capital gains tax, and depreciation recapture.

03:29  1031 Exchanges vs. cash-out refinances. Reasons for doing a 1031.

06:35  Three identification methods: 3 Properties Rule, 200% Rule, 95% Rule.

09:40  Like-Kind Exchanges are flexible between income property types.

12:18  A technique to use a 1031 and still get your hands on the cash.

14:12  Primary residences have capital gains tax exemptions outside of 1031s.

18:29  Lending obstacles with 1031s.

22:38  1031 Example - sell 2 in Dallas, exchange for 4 in Birmingham.

25:32  Greater leverage.

31:06  Combining multiple properties into one exchange.

34:11  Simultaneous closings. Advantage of 1031s with turnkey property.

35:40  You can do an unlimited amount of exchanges in your lifetime.

37:22  1031s are amazing wealth-building tools, but you must carefully follow rules.

Resources Mentioned:

Graham Parham phone: (855) 326-6802

NoradaRealEstate.com

MidSouthHomeBuyers.com

GetRichEducation.com

GREturnkey.com

 

Direct download: GREepisode143_1.mp3
Category:general -- posted at: 6:20am EDT

#142: Keith’s $530,000 four-plex dropped in value to $480,000 during the 2007-09 Mortgage Meltdown.

Lessons from the Housing Crisis of 2007-2009 still influence Keith’s investing today. Our guest, Damion Lupo, lost worse than Keith at this time. His $20M portfolio imploded.

Damion spent over a million dollars on seminars alone. He recklessly went all-out by purchasing 150 rental units across 7 states more than a decade ago - without regard for cash flow. It crashed.

Today, his firm, Total Control Financial, helps you control your financial future with self-directed IRA and Solo 401K services for optimized retirement planning.

Top takeaway: Buy for cash flow in stable economic metro markets.

Grab Get Rich Education’s new book at GetRichEducation.com/Book

Want more wealth? Visit: 1) www.GetRichEducation.com to grab our free newsletter.  2) www.GREturnkey.com for actionable turnkey real estate investing opportunities.

Listen to this week’s show and learn:

00:57  Keith’s $530,000 four-plex dropped in value to $480,000 in the 2007-09 Mortgage Meltdown.

15:37  If Damion could do it all over again, what would he do differently?

20:04  Harvesting equity.

24:29  Damion won’t do deals with people in their 20s.

26:30  The next crash.

34:14  Hard money loans.

42:25  Retirement.

49:26  Choose stable markets in the Midwest and South.

Resources Mentioned:

TotalControlFinancial.com

Investopedia.com

NoradaRealEstate.com

HighlandsMortgage.com

MidSouthHomeBuyers.com

GetRichEducation.com

GREturnkey.com

 

 

Direct download: GREepisode142_1.mp3
Category:general -- posted at: 4:00am EDT

#141: Real estate hedonics and inflation effectively mean that real estate goes down in price over time. So then how can it be such a great investment? Keith answers.

We run the numbers on a Memphis duplex. Keith calculates a 32.4% ROI right before your eyes.

Keith tells you how to make more income if you’re living paycheck-to-paycheck.

Learn about the opportunity cost of renting out a $620,000 south Florida home for $2,900.

Grab Get Rich Education’s new book at GetRichEducation.com/Book

Want more wealth? Visit: 1) www.GetRichEducation.com to grab our free newsletter.  2) www.GREturnkey.com for actionable turnkey real estate investing opportunities.

Listen to this week’s show and learn:

01:37  Giving.

04:57  Real estate hedonics.

09:46  Calculating Total Rate Of Return from real estate.

17:57  Most real estate investors can’t “keep score”.

19:34  Living paycheck-to-paycheck. How to get started?

24:34  People want change, but don’t want to change.

32:25  Renting out a $620,000 south Florida home.

Resources Mentioned:

NoradaRealEstate.com

HighlandsMortgage.com

MidSouthHomeBuyers.com

GetRichEducation.com

GREturnkey.com

Clickbank.com | Kajabi.com

 

Direct download: GREepisode141.mp3
Category:general -- posted at: 4:00am EDT

#140: Keith’s new book is now out in paperback form at: www.GetRichEducation.com/Book.

Direct investment in single family income properties has strong demand from both investors and renters.

Single-family home (SFH) income property advantages include: they trade independent of market cap rates, stronger appreciation than apartments, inflation protection, amortization, tax depreciation, lower cost, easier financing, more understandable, no shared walls, divisibility, less tenant turnover, and better locations than apartments.   

Today’s guest, HassleFreeCashFlowInvesting.com’s David Campbell helps Keith break down single-family investing advantages.

Grab Get Rich Education’s new book at GetRichEducation.com/Book

Want more wealth? Visit: 1) www.GetRichEducation.com to grab our free newsletter.  2) www.GREturnkey.com for actionable turnkey real estate investing opportunities.

Listen to this week’s show and learn:

01:15  Ken McElroy in 2017: “It’s a terrible time to buy multifamily in most metros.”

06:23  SFHs trade independent of cap rates.

09:57  Appreciation vs. Inflation.

11:03  SFHs are approachable because they’re lower cost and financing can be easier.

14:52  No shared walls: pests, fires, noise.

15:48  Arbitrage.

18:00  Keep a low equity position for asset protection.

20:17  Divisibility.

20:53  The fallacy of “buying cash flow”.

25:08  Prepaying the mortgage is a huge mistake.

27:55  SFH: no or low utility payments.

29:00  Neighborhood quality.

32:00  Cash flow.

33:51  Income tax-free states.

34:57  Tenant psychology in SFHs. It “feels like their own”. Exit strategy.

36:50  GREturnkey.com has many of the best income property SFHs.

38:25  Ask: “Mr. Manager, what would like to manage?”

40:40  SFHs have less tenant turnover than apartments.

43:10  SFHs is where you typically start.

45:46  “Leaving a trail behind” with 3.5% down payment FHA loans.

48:30  David’s free e-book at HassleFreeCashFlowInvesting.com.

Resources Mentioned:

HassleFreeCashFlowInvesting.com

GetRichEducation.com/Book

NoradaRealEstate.com

HighlandsMortgage.com

MidSouthHomeBuyers.com

GetRichEducation.com

GREturnkey.com

 

Direct download: GREepisode140_1.mp3
Category:general -- posted at: 4:00am EDT

#139: Grab Get Rich Education's new book at: GetRichEducation.com/Book.

You need money in order to trade it for time. You can’t trade anything other than money for time.

The housing inventory shortage will reach a peak before new construction can relieve the problem.

Paying rent is not like “throwing money away every month.” Keith breaks down the trade-offs between renting vs. owning your primary residence.

Want more wealth? Visit: 1) www.GetRichEducation.com to grab our free newsletter.  2) www.GREturnkey.com for actionable turnkey real estate investing opportunities.

Listen to this week’s show and learn:

01:34  Apartment buildings between 2 and 9 units are no longer being built as often.

06:06  The overall shortage of housing inventory for sale.

07:23  Feeling imprisoned in your own home due to low inventory, rising interest rates.

12:39  Housing builder confidence is up. More new construction.

14:00  There is currently income property inventory in Jacksonville, FL: GetRichEducation.com/jax

17:39  Why do you think you need to own a home?

18:57  Paying rent is “not throwing money away”. Here’s why.

20:04  16 tradeoffs between Renting vs. Buying your own home.

28:06  Time vs. Money.

Resources Mentioned:

GetRichEducation.com/Book

NoradaRealEstate.com

HighlandsMortgage.com

MidSouthHomeBuyers.com

GetRichEducation.com

GREturnkey.com

 

Direct download: GREepisode139.mp3
Category:general -- posted at: 4:00am EDT

Yes! Our first-ever book has been released today at GetRichEducation.com/Book.

Brief and to-the-point, with no guest writers or ghost writers, Keith dispels seven of the most common money myths that limit your financial growth potential including: “Be debt-free” (a myth), and “Get your money to work for you” (another myth, believe it or not).

“7 Money Myths That Are Killing Your Wealth Potential” has already hit Amazon #1 bestseller status in multiple categories.

Grab it now before the price goes up after Friday at: GetRichEducation.com/Book

Direct download: GRE_Book_Episode.mp3
Category:general -- posted at: 7:26am EDT

#138: You’ve run out of money to buy real estate. What do you do now? You pool other people’s money for the down payment through a process called real estate syndication. Learn how.

Urban real estate investing involves: exploiting geographic class segregation, “moving the gentrification line”, rent control, and public transit proximity.

Today’s guest, Victor Menasce, is an Ottawa, Canada-based real estate syndicator. He’s an expert at teaching you how to raise capital from others for real estate deals in his book, Magnetic Capital.

Want more wealth? Visit: 1) www.GetRichEducation.com to grab our free newsletter.  2) www.GREturnkey.com for actionable turnkey real estate investing opportunities.

Listen to this week’s show and learn: 

00:48  How can “real estate syndication” make you wealthy?

03:59  Investing in the U.S. vs. Canada: the biggest difference.

05:28  Urban investing: “Buy on the line. Move the line.”

07:48  Infill development.

09:22  New construction and low inventory.

10:18  Example on a buy-and-hold million dollar building.

13:07  Urban areas: higher appreciation risk and reward?

17:31  Leading indicators of up-and-coming areas.

19:58  Rent control discussion.

24:33  Raising capital from others.

29:26  Establishing trust, track record, compelling opportunity, alignment.

34:53  “Borrow” someone else’s track record.

40:19  Give yourself a promotion.

Resources Mentioned:

VictorJM.com

NoradaRealEstate.com

HighlandsMortgage.com

MidSouthHomeBuyers.com

GetRichEducation.com

GREturnkey.com

 

 

 

Direct download: GREepisode138.mp3
Category:general -- posted at: 4:00am EDT

#137: GRE listener Eric Pratt is today’s guest. His passive monthly RE income is $3,600, soon to be $4,600.

He bought turnkey income properties: 6 in Memphis, 1 in Atlanta, and soon expects to close 1 in Birmingham. He carries 7 mortgages.

Eric is in his 40s, married, and is a police officer in Anchorage, Alaska. Learn about how GRE has changed his life, and learn about one speed bump that he hit on the way.

This show has been on the air every week for more than 2 ½ years and it’s changing lives. It’s time to hear your story. Keith tells you how you can be on the show with him.

Keith brings you today’s show from Anchorage, Alaska.

Want more wealth? Visit: 1) www.GetRichEducation.com to grab our free newsletter.  2) www.GREturnkey.com for actionable turnkey real estate investing opportunities.

Listen to this week’s show and learn:

04:23  Today’s guest, Eric, had never heard of a podcast before learning about GRE.

06:04  Growing up in a financial family: Dad - banker; Stepmom - accountant.

09:34  Eric’s first investment property was bought in Las Vegas in 2001.

14:20  Eric used to invest out-of-state without knowing about turnkey RE investing. He previously tried to put the “team ingredients” together himself.

15:25  His first turnkey investment property was bought in Memphis in 2015 through Mid South Home Buyers.

16:45  Some think turnkey real estate investing is too good to be true.

19:01  Guest’s former mission to be debt-free changed to becoming financially-free.

24:40  Paid 6 ways at the same time?

26:26  Eric self-manages one property. Lesson learned: buy from a provider with in-house management rather than third-party management.

29:17  Paying $61,000 cash to own a Memphis property free-and-clear.

31:12  Carrying 7 mortgages.

32:06  Offering full asking price on turnkey properties?

33:21  Eric’s passive monthly RE income is $3,600, expects it will soon be $4,600.

38:23  He has an employer pension.

39:27  The Abundant Mindset.

41:32  Birmingham, Alabama’s surprising revitalization.

43:50  Eric leaves his personal e-mail address for you: pratts@ak.net

Resources Mentioned:

MidSouthHomeBuyers.com

Birmingham Turnkey Property

NoradaRealEstate.com

HighlandsMortgage.com

GetRichEducation.com

GREturnkey.com

Guest E-mail: pratts@ak.net

Direct download: GREepisode137_1.mp3
Category:general -- posted at: 4:00am EDT

#136: Get a pay raise from your employer with this innovative approach.

Also, increase your rental income with this technique. Learn how to raise the rent on your tenant without losing them. It starts with you thinking about how your tenant is thinking. Use this “3 Options Strategy”.

Think about your “Salary Reduction Plan” vs. your “Salary Increase Plan”. Don’t ask your boss for a raise. You’ll learn how to give yourself one.

Keith also has a fresh take on property management.  

Keith brings you today’s show from Philadelphia, Pennsylvania.

Want more wealth? Visit: 1) www.GetRichEducation.com to grab our free newsletter.  2) www.GREturnkey.com for actionable turnkey real estate investing opportunities.

Listen to this week’s show and learn:

01:32  Raise the rent on your tenants in this innovative way.

03:59  Lease Renewal Options Form - give your tenant three rent amount and duration options.

05:34  Justification for increasing your rent: higher property tax, hazard insurance, utility costs, etc.

08:39  Why a subtle 3-5% rent increase helps you more than you think.

10:23  How to get a pay raise from your employer.

13:14  Negative cash-flowing property: perspective.

17:56  Don’t even ask your boss for a raise.

23:55  Property Managers - you want one, but yet you don’t. Discussion.

26:45  Subway restaurant analogy.

30:54  How many income properties could you own if you self-managed?

32:36  Find the right income properties through: www.GREturnkey.com

Resources Mentioned:

Keith's Whiteboard Video: Cash Flow vs. Inflation

NoradaRealEstate.com

TheRealAssetInvestor.com/GRE

HighlandsMortgage.com

MidSouthHomeBuyers.com

GetRichEducation.com

GREturnkey.com

 

Direct download: GREepisode136.mp3
Category:general -- posted at: 4:00am EDT

#135: From $50 million to zero. That’s what happened to the net worth of today’s guest, Rod Khleif, in the mortgage meltdown of 2008.

His mistake was that he focused on real estate appreciation rather than cash flow, and he lost control. He’s owned 2,000 single-family homes and multifamily units.

Rod is a motivating guy. He talks to us about Single Family vs. Multifamily Property, self-management of property, and the psychology of success and fulfillment.

Keith brings you today’s show from upstate Pennsylvania.

Want more wealth? Visit: 1) www.GetRichEducation.com to grab our free newsletter.  2) www.GREturnkey.com for actionable turnkey real estate investing opportunities.

Listen to this week’s show and learn:

02:40  Single Family vs. Multifamily.  

09:09  Professional management vs. self-management of property.

11:31  Self-visualization and motivation.

15:51  Goal-setting. The psychology of taking action. Visualization.

20:52  Gratitude.

22:46  How to find achievement and fulfillment.

29:49  Trade-offs: Single Family vs. Multifamily.

32:18  Should you ever self-manage property?

34:53  Giving yourself a pay raise at work and increasing your rent income on your properties.

Resources Mentioned:

RodKhleif.com | Text “ROD” to 41411

NoradaRealEstate.com

TheRealAssetInvestor.com/GRE

HighlandsMortgage.com

MidSouthHomeBuyers.com

GetRichEducation.com

GREturnkey.com

SpotCrime.com

 

Direct download: GREepisode135.mp3
Category:general -- posted at: 4:00am EDT

#134: Tom Wheelwright, Rich Dad Advisor and Founder of ProVision talks with Keith about classifying income property repairs vs. improvements.

We discuss how 401(k)s are for people that care little about involvement in their financial future.

Will taxes ever get simpler? Tom says no.

Classifying repairs vs. improvements is a big deal. There’s a $2,500 threshold distinguishing the two categories.

Want more wealth? Visit: 1) www.GetRichEducation.com to subscribe to our free newsletter.  2) www.GREturnkey.com for actionable turnkey real estate investing opportunities.

Listen to this week’s show and learn:

03:40  Early civilizations collected taxes: Ancient Egypt, Imperial China, the U.S. vs. Britain.

07:22  Income tax hurts employees most, beginning in 1944.

09:03  Will taxes ever get simpler? No.

11:30  Classifying repairs vs. improvements. “The $2,500 Rule.”

23:53  401(k) participation. Why would educated people be interested in one?

30:10  401(k)s are Salary Reduction Plans.

32:22  Before-tax vs. after-tax rates of return.

34:06  How to find the right tax advisor.  

Resources Mentioned:

TaxFreeWealthAdvisor.com

NoradaRealEstate.com

TheRealAssetInvestor.com/GRE

HighlandsMortgage.com

MidSouthHomeBuyers.com

GetRichEducation.com

GREturnkey.com

 

Direct download: GREepisode134.mp3
Category:general -- posted at: 4:00am EDT

#133: Now you can put just a 20% down payment on your first 10 financed properties. Requirements for cash reserves are now lower too. We discuss the details.

You need a loan for income property. Loans mean leverage. Leverage can produce great rates of return for you in an appreciating environment

Graham Parham, Senior Mortgage Loan Officer with Highlands Residential Mortgage talks about today’s terms for income property loans on 1-4 unit properties: down payment, interest rates, credit score, reserve requirements, debt-to-income ratios and more.

We’re talking about conventional Fannie Mae / Freddie Mac financed property requirements on non-owner occupied real estate.

Keith brings you today’s show from Philadelphia, PA.

Want more wealth? Visit: 1) www.GetRichEducation.com to subscribe to our free newsletter.  2) www.GREturnkey.com for actionable turnkey real estate investing opportunities.

Listen to this week’s show and learn:

01:30  Keith thinks that real estate will keep appreciating for a while, though at a slower rate.

04:35  20% down payments in your first ten 1-4 unit properties! Details.

06:57  Reserve requirements are now more loose. It’s now based on your unpaid balances.

11:12  Husband and wife: up to 10 loans each.

12:27  Home Equity Lines Of Credit and your Debt-To-Income Ratio.

15:14  The advantage of using an income property-oriented Mortgage Loan Officer.

19:00  Interest rates: owner-occupied vs. investor mortgage rates.

21:55  Down payments of 20% vs. 25%. Lower interest rate with 25% down?

23:57  Mortgage sequencing when you want multiple loans.

27:36  Looser lending climate today.

30:46  Property inspection reports.

Resources Mentioned:

Graham Parham Team: 1-855-326-6802

TexasInvestorLoans.com

GREturnkey.com

NoradaRealEstate.com

TheRealAssetInvestor.com/GRE

HighlandsMortgage.com

MidSouthHomeBuyers.com

GetRichEducation.com

Direct download: GREepisode133.mp3
Category:general -- posted at: 4:00am EDT

#132: Create wealth and time for yourself with these ideas, websites, apps, secrets, and shortcuts.

Get a 51% ROI from turnkey real estate investing. How? Example given.

Seth Williams of Bigger Pockets and the Lighter Side Of Real Estate joins us. Learn more about Seth at www.retipster.com.  

Want more wealth? Visit: 1) www.GetRichEducation.com to subscribe to our free newsletter.  2) www.GREturnkey.com for actionable turnkey real estate investing opportunities.

Listen to this week’s show and learn:

02:52  Achieve a 51% ROI from turnkey real estate investing with: appreciation, cash flow, tenant principal paydown, tax depreciation, and inflation-hedging.

07:26  Risks.

09:34  GREturnkey.com - Turnkey cash flowing property in investor-advantaged markets.

12:42  NeighborhoodScout.com - Aggregating neighborhood data like crime, school district.

16:45  Overcast podcast listening app.

19:30  BombBomb.com - Send video e-mails.    

22:00  RocketLawyer.com - Access to legal documents, contracts, real estate agreements. Convenient Q & A format completes documents for you.

23:28  Cozy.co - Free self-property management platform.

25:38  LeadPropeller.com - User-friendly website builder for real estate investors.

27:14  UnSplash.com - Free high-quality, rich images. Royalty-free and legal for your use.

29:00  InvestorCarrot.com - User-friendly website builder for real estate investors.

29:14  The importance of having a real estate investor website.

31:12  BluePay.com - Accept real estate payments through credit cards.

33:30  Trello.com - Cloud-based project management. Communicate with your team.

35:18  TextExpander.com - Productivity app that lets you conveniently insert boilerplate phrases. This way, you don’t need to type the same thing over-and-over.

37:34  Wunderlist.com - Create shared cloud-based checklists.

Resources Mentioned:

REtipster.com

NoradaRealEstate.com

TheRealAssetInvestor.com/GRE

HighlandsMortgage.com

MidSouthHomeBuyers.com

GetRichEducation.com

GREturnkey.com

 

Direct download: GREepisode132_1.mp3
Category:general -- posted at: 4:00am EDT

#131: Ken McElroy is our guest today. He’s the Rich Dad Advisor for real estate. Why does your tenant move out, and what will keep them inside your rental property?

He tells us what tenants want today and how rental trends have changed over the last 5, 10, and 20 years. With over 10,000 units in multiple markets in his company’s control, he knows.

In many markets, rent increases are not coming as easily as they were a few years ago.

Ken & I discuss the best ways to increase income on your property.

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive turnkey real estate investing opportunities.

Listen to this week’s show and learn:

02:12  Polling tenants at move-out to determine why they moved.

05:05  Tenants are more mobile today. They go where jobs are.

06:40  Service level to tenants is more important today - fitness center, activities directors, shuttle vans, and even bartenders.

07:35  Living spaces of 200 - 300 square feet in urban cores and college towns.

09:44  Why can’t tenants pay more rent? Discussion on negative rent growth.

13:52  High rents can be a threat to public safety.

22:20  Why did your tenant move out?

28:03  School districts, crime.

30:19  Forecasting infrastructure improvements and how that boosts local real estate.

34:47  Websites that Ken uses for real estate market research.

37:22  Increasing your Net Operating Income - best ways, dumbest ways.

40:49  Pushing rents too high.

44:12  Ken feels real estate is still the best asset class to be invested in. But he tells us to exercise caution in a hot market.

46:22  Catch up with Ken at KenMcElroy.com  Check out his great video series, KenFlix.

47:53  A lot of people are going to lose everything in the next five years.

Resources Mentioned:

KenMcElroy.com

Nmhc.org | Uli.org

NoradaRealEstate.com

TheRealAssetInvestor.com/GRE

HighlandsMortgage.com

MidSouthHomeBuyers.com

GetRichEducation.com

 

Direct download: GREepisode131_1.mp3
Category:general -- posted at: 4:00am EDT

#130: The U.S. housing market shortage is on. Inventory is getting squeezed in many markets. Keith discusses.

Jordan Goodman is our guest today. He’s “America’s Money Answers Man” and you’ve seen him answer money questions across the decades on The View, Fox News Network, CNN, CNBC, the CBS Evening News, Money Magazine, and terrestrial radio.

He’s also authored 13 books on personal finance.

Jordan tells us: how you can use leverage, how to create a cash flow stream by making a real estate loan to others, what Donald Trump means to real estate investors, about the future of interest rates, consumer sentiment, and more.

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive turnkey real estate investing opportunities.

Listen to this week’s show and learn:

01:22  The U.S. housing squeeze is on. For example, in Seattle, one in only 263 homes is for sale.

04:24  Bubbles.

07:02  Jordan Goodman interview begins.

09:27  Leverage: dolphins vs. sharks.

16:28  Build an income stream of 8% cash flow by being a lender on commercial real estate.

27:18  Donald Trump and the real estate market.  

31:21  The U.S. real estate shortage.

33:10  Interest rates.

34:27  Consumer sentiment and jobs.

37:32  Banks are not paying more on deposits, even with higher interest rates.

39:40  Reclaim your lost escrow dollars by using these websites.

Resources Mentioned:

MoneyAnswers.com

NoradaRealEstate.com

TheRealAssetInvestor.com/GRE

HighlandsMortgage.com

MidSouthHomeBuyers.com

GetRichEducation.com

CommercialRealEstateIncomeFunds.com

VerifyMyMortgage.com

VerifyMyEscrow.com

Article: 10 U.S. Cities With Biggest Housing Shortages

 

Direct download: GREepisode130.mp3
Category:general -- posted at: 4:00am EDT

#129: Dallas, TX could be the strongest real estate market in the entire U.S. as it keeps experiencing staggering business, job, and population growth.

In fact, Forbes has named Dallas, TX as the #1 place to invest in 2017.

But if you live outside Dallas-Fort Worth, how do you capture the upside yourself? With turnkey single-family income property.

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive turnkey real estate investing opportunities.

Listen to this week’s show and learn:

02:50  Texas has had great economic fortune for decades. Geopolitical Strategist Peter Zeihan tells us that this will continue.

04:18  Dallas-Fort Worth’s astounding population growth.

05:16  Why to invest in single-family homes rather than apartment buildings.

09:55  In a hot market, have a relationship with a team that can get housing inventory.

12:03  Competing for housing inventory. Targeting 7%+ cash-on-cash return.

15:31  Product type: SFHs with minimum of 3 BR, 2 BA, 2-car garage.

17:14  Don’t “over-improve.” Examples.

20:30  What type of person invests in turnkey real estate? Busy people.

22:38  In-house property management.

25:58  The economies of scale advantage with contractors.

28:30  Averages: rent income $1,600 and sale price $170,000.

29:51  Investors have one point of contact.

31:18  Management companies propose solutions, not just pose problems.

32:30  April 21-23: Attend the upcoming Dallas Income Property Tour & Workshop.

34:45  High tenant quality.

36:05  Positive cash flow.

Resources Mentioned:

GetRichEducation.com/Texas

Blog Article: Triple Your Equity In Five Years

TheRealAssetInvestor.com/GRE

HighlandsMortgage.com

MidSouthHomeBuyers.com

GetRichEducation.com

 

Direct download: GREepisode129_1.mp3
Category:general -- posted at: 4:00am EDT

#128: These five money myths are killing your wealth potential.

Don’t believe: 1) Get your money to work for you. 2) Compound interest creates wealth. 3) Be debt-free. 4) Home equity has a rate of return. 5) Live below your means.

All five of the above are money mindset myths. If you believe them, you won’t create wealth.

Real estate investing cures all five money mindset myths.

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive turnkey real estate investing opportunities.

Listen to this week’s show and learn:

02:07  Your brain is programmed to survive rather than thrive.

06:10  Why dispelling mindset myths is important.

10:46  Other people’s money.

16:23  Example of financial leverage.

17:39  Don’t be debt-free; be financially-free. Examples.

24:45  Inflation-hedging.

26:15  Compound Interest vs. Leverage.

28:41  “Millionaire.” Who cares?

31:12  Equity has zero rate of return. It’s unsafe and illiquid. Examples.

35:25  Equity transfers.

37:29  Should you pay off your primary residence?

39:26  Lawsuits.

40:28  Myth: “Live below your means.”

43:10  Don’t budget.

44:32  Question your answers.

45:49  The power of being bold.

 

Resources Mentioned:

PassiveRealEstateInvesting.com

NoradaRealEstate.com

TheRealAssetInvestor.com/GRE

HighlandsMortgage.com

MidSouthHomeBuyers.com

GetRichEducation.com

 

Direct download: GREepisode128.mp3
Category:general -- posted at: 4:00am EDT

#127: You are invested in a zero-return investment. Home Equity is unsafe, illiquid, and its rate of return will always be zero. Then why are you so heavily invested in home equity?

We discuss strategies to turn this around, and use home equity as a wealth-builder for you.

Making extra mortgage principal payments on one’s home is usually a terrible idea.

Striving to be debt-free often prevents one from becoming financially-free. You'll see why.

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive turnkey real estate investing opportunities.

Listen to this week’s show and learn:

03:57  ROI.

04:28  Turnkey income property inventory keeps tightening.

06:33  You have money that you didn’t know you have.

07:35  Your value as a listener.

12:04  How much of a zero-return investment would you want?

13:44  Debt-Free vs. Financially-Free.

17:01  Property equity is unsafe, illiquid, and has zero rate of return.

20:18  Equity transfers.

24:46  Making extra principal payments on one’s home.

26:55  “Feelings.”

27:32  30-year fixed vs. 15-year fixed amortizing mortgage loans.

34:56  Control.

41:51  HELOCs.

 

Resources Mentioned:

NoradaRealEstate.com

TheRealAssetInvestor.com/GRE

HighlandsMortgage.com

MidSouthHomeBuyers.com

GetRichEducation.com

 

Direct download: GREepisode127.mp3
Category:general -- posted at: 4:00am EDT

#126: Robert Kiyosaki is our guest today. He’s the #1 Selling Personal Finance Author Of All-Time. He’s authored numerous titles, including the mega-popular “Rich Dad, Poor Dad”.

He leads the Rich Dad Company, whose mission is “Elevating the financial well-being of all humanity.”

Don’t work for money. Let your assets produce money for you.  

Kiyosaki’s enduring mantras include: The Rich Don’t Work For Money | Your House Is Not An Asset | Don’t Live Below Your Means, Expand Your Means | Savers Are Losers, Debtors Are Winners and countless other influential quotes and statements.

Keith hosts today’s show from Anchorage, Alaska.

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive turnkey real estate investing opportunities.

Listen to this week’s show and learn:

02:12  The power of the book “Rich Dad, Poor Dad”.

04:23  Robert Kiyosaki interview begins.

05:12  Kiyosaki: Our school system is corrupt.

07:36  The Communist Manifesto (1848) by Karl Marx and Friedrich Engels.

10:16  If you own enough production, you won’t work for money.

11:16  Dying capitalism in the United States.

13:05  “Don’t live below your means. Expand your means.”

15:25  Kiyosaki adds 300-400 properties to his portfolio annually.

16:39  “Printing money on demand.”

18:17  Oil prices.

21:21  You Are The President Of Your Own Life.

24:28  Before buying real estate, consider the amount of debt you can get. Net Operating Income. Consumer Debt vs. Investor Debt.

26:44  20th Anniversary Edition of Rich Dad, Poor Dad.

29:18  The rich, middle class, poor. Concern about a crash. Debt and taxes.

30:32  What can the everyday person do?

31:04  Kiyosaki: We’re going into a depression.

34:45  Weinhold on debt.

36:10  Eight old rules of wealth. It’s faulty financial programming.

39:35  Ripping 401(k)s.

41:16  Telling yourself the truth.

41:53  Donald J. Trump. Keith gives a political opinion.

Resources Mentioned:

RichDad.com

Amazon: Rich Dad, Poor Dad

NoradaRealEstate.com

TheRealAssetInvestor.com/GRE

HighlandsMortgage.com

MidSouthHomeBuyers.com

GetRichEducation.com

Direct download: GREepisode126_1.mp3
Category:general -- posted at: 4:00am EDT

#125: Your passive income streams are durable to the extent that they’re diversified.

Specialty agriculture can realize spectacular gains as the world’s amount of arable land diminishes. At the same time there are more mouths to feed.

There is a massive undersupply of fine cacao for the world's strong market demand.

Chocolate is derived from the cacao tree. Quality cacao thrives in the stable Central American nation of Belize. Finished products include gourmet chocolate and cacao butter.

You can realize a cash flow stream from the annual harvest of the cacao beans, and it's all managed for you.

Learn about the returns, risks, cacao supply vs. demand, and more.

Keith hosts today’s show from Anchorage, Alaska.

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive turnkey real estate investing opportunities.

Listen to this week’s show and learn:

01:40  Durable wealth means having multiple diverse income streams.

03:12  Cacao (chocolate) farm investing in Belize.

05:00  Panama coffee farm parcel investing update.

07:01  Cacao farming business model.

09:11  Why Belize was chosen for cacao crops.

11:21  Supply vs. Demand for fine-flavored cacao.

16:05  Chocolate is a proven product with sustainable demand.

22:20  What a cacao farm looks like.

28:29  Risks.

31:48  $24,500 per half-acre parcel. Investors need not be accredited, no loans, 11-12% cash return expected over time (not including potential land appreciation). IRA funds eligible.

36:13  Exit strategy.

38:42  Proven product, stable government, secure, turnkey managed, social benefit.

41:53  Attend a cacao farm tour.

43:43  Cacao trees produce fruit regardless of how financial markets perform.

44:40  Nationalism.

45:50  Provider track record, and retaining local labor.

48:20  Learn more at GetRichEducation.com/Chocolate

 

Resources Mentioned:

GetRichEducation.com/Chocolate

NoradaRealEstate.com

TheRealAssetInvestor.com/GRE

HighlandsMortgage.com

MidSouthHomeBuyers.com

GetRichEducation.com

 

Direct download: GREepisode125.mp3
Category:general -- posted at: 4:00am EDT

#124: Why mobile home parks of all investment vehicles? Guest Kevin Bupp tells us by explaining why they’re so misunderstood and he helps dispel stigmas.

Mobile home park (MHP) residents stay in their home longer because they actually own the mobile home. Therefore, they also take better care of their place. As the investor, you rent the lot to the tenant. This also makes MHPs easier to manage.

Keith brings you today’s show from Bridgetown, Barbados.

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive turnkey real estate investing opportunities.

Listen to this week’s show and learn:

03:02  There is a stigma with mobile home parks (MHPs). Here’s how that can actually benefit you.

05:04  Dealing with municipalities.

07:55  Management of MHPs.

10:31  Lack of competition.

14:07  Community aspect.

20:40  Utilities.

25:32  Financing for MHPs. Owner financing is more common than bank financing.

29:02  How do you find a mobile home park for sale?

33:29  Your Return On Time Invested.

37:24  Syndication opportunity.

38:10  Mistakes to avoid.

42:39  In two weeks, Robert Kiyosaki returns here to the show.

 

Resources Mentioned:

KevinBupp.com

MobileHomeParkAcademy.com

Loopnet.com

MobileHomeParkStore.com

NoradaRealEstate.com

TheRealAssetInvestor.com/GRE

HighlandsMortgage.com

MidSouthHomeBuyers.com

GetRichEducation.com

Direct download: GREepisode124.mp3
Category:general -- posted at: 4:00am EDT

#123: What if the value of your income properties falls 40% vs. the value of stock falls 40%?

We explore the strategic, emotional and practical side of this.

Learn how you stop losing money by paying the opportunity cost of not being invested strategically. How to use desktop methods to research the right properties and markets.

Keith is invested in a real estate market where there’s a recession. Here’s how he deals with it.

Keith brings you today’s show from San Juan, Puerto Rico.

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive turnkey real estate investing opportunities.

Listen to this week’s show and learn:

02:50  Most real estate investors buy property for convenience, not strategy.

05:34  Reading about 3-D printing before investing in Memphis real estate (really?).

07:17  Use these desktop methods to research property.

09:12  When your stocks fall 40%, a story of what happens tactically and emotionally.

17:20  There have been 25 stock bear markets since 1929.

18:27  Corporate Direct for asset protection.

21:58  The mortgage meltdown of 2009.

23:31  What happens if you income property portfolio fell in value by 40%?

26:56  In a stock meltdown, companies disappear. In a real estate meltdown, you still own land, brick, concrete, wood, copper wire, and glass.

28:23  Warren Buffett’s Rule No. 1: “Don’t lose money.”

29:07  Keith owns income property in Anchorage, Alaska, and there’s a recession there.

31:34  Submarkets and business sectors.

34:58  Invest in 3-5 different metros.

37:11  Home inspections.

Resources Mentioned:

WeGoLook.com

NoradaRealEstate.com

TheRealAssetInvestor.com/GRE

HighlandsMortgage.com

MidSouthHomeBuyers.com

GetRichEducation.com

 

Direct download: GREepisode123_new-pre-roll.mp3
Category:general -- posted at: 4:00am EDT

#122: How do you invest in resort property? Why would you want to?

Ambergris Caye is Belize’s largest island. It has been named Trip Advisor’s #1 Island In The World two years in a row. Learn why.

Ambergris Caye, Belize has world-class water sports, the longest living reef in the world, stable banking, is close to the U.S., English is the official language, and housing demand there far outstrips supply.  

Belize has business-friendly government officials and strong property ownership rights.

A new construction resort development project on Ambergris Caye promises to help ease the supply constraint. There is an investment opportunity for you here.

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive turnkey real estate investing opportunities.

Listen to this week’s show and learn:

02:00  Serving resort-goers often means serving Baby Boomers.

04:25  What’s riskier: investing outside your home nation, or having everything tied up in one nation’s economy and currency?

06:36  Belize is closer to more Americans than Hawaii. Airlines are adding passenger seats to Belize at an astonishing clip.

07:58  Why resort investing? Why Belize?

11:30  Belize is Central America’s only nation where English is the official language.

15:14  Ambergris Caye’s transition from a sleepy fishing village to world-renowned destination.

17:15  The large barrier reef is just hundreds of yards off the island. This attracts sportfishing, snorkeling, and diving. It also acts as a natural hurricane buffer.

21:37  Mahogany Bay Village on Ambergris Caye.

24:00  Belizean wood products and Belizean labor are utilized to construct the project.

24:38  What’s the opportunity for the investor?

26:58  Lack of financing is a problem. It’s also an opportunity.

30:08  For an investor, this investment is passive. Professional management is in place. Low property tax, low rental income tax.

31:16  Imagine owning income property that you can enjoy visiting and using.

33:10  Investors can expect double-digit returns. Hotel management fees are low due to economies of scale.

34:22  This resort is so well thought-out that Hilton recently came in and branded it. Hilton's due diligence has validated the development. Their marketing power promises to be transformational.

36:13  Your opportunity to visit Ambergris Caye, Belize for a real estate field trip.

40:17  REVPAR means revenue per available room.

42:11  Locally-sourced development upholds the culture.

 

Resources Mentioned:

TheRealAssetInvestor.com/GRE

NoradaRealEstate.com

MidSouthHomeBuyers.com

GetRichEducation.com

 

Direct download: GREepisode122.mp3
Category:general -- posted at: 4:00am EDT

#121: What’s your personal “Money Operating System”?

Hilary Hendershott is the personal finance expert on the NBC Evening News in California’s Silicon Valley. An MBA, CFP, and TEDx Speaker, she’s an an authority on money strategy and mindset.

Money has an infinite supply; then why do most people have a limiting belief about money? Also, we discuss how men and women approach money differently.

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive turnkey real estate investing opportunities.

Listen to this week’s show and learn:

01:05  Rising mortgage interest rates.

05:00  Hilary Hendershott interview begins.

06:03  Limiting beliefs about money.

08:47  Money isn’t real; it’s a concept, an abstraction, a promise.

11:43  Lottery winners that go broke.

13:44  Common “Money Operating Systems”.

18:18  Does society spend too much time emphasizing money?

20:00  Men vs. women and money.

26:04  Real estate investing for cash flow.

28:22  Tax depreciation on rental property. Avoiding depreciation recapture.

31:38  “Money is the root of all evil.” Really? Keith analyzes.

 

Resources Mentioned:

HilaryHendershott.com

NoradaRealEstate.com

TheRealAssetInvestor.com/GRE

MidSouthHomeBuyers.com

GetRichEducation.com

MortgageNewsDaily.com

Direct download: GREepisode121.mp3
Category:general -- posted at: 4:00am EDT

#120: One of the few coastal markets where you can find cash flow is Jacksonville, Florida.

Fortune 500 companies, the military, and the seaport support this market, not tourism.

Learn about investing in these single-family homes with two and three-year leases, how unscrupulous management companies can manipulate you, and how to protect your cash flow.

Learn more at GetRichEducation.com/Jax

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive turnkey real estate investing opportunities.

Listen to this week’s show and learn:

00:54  Don’t follow money. Make money follow you.

03:31  Have a sound strategy. Don’t “throw darts at a map”.

04:02  In real estate investing, your team of pros (Property Manager) could be more important than the geographic market itself.

05:01  Gregg Cohen interview begins.

06:29  Cash flow in a coastal market?

08:04  Population growth, business sectors and industry. Amazon.

11:31  Jacksonville is younger than the rest of Florida. Age 35 vs. 42.

12:27  Panama Canal expansion and Jacksonville.

14:59  Property Management: How some companies manipulate you with 1-year leases.

20:46  2-year and 3-year leases as “the norm.”

24:42  Renovation & management companies have the same ownership. Communication.

29:15  How to protect your cash flow amount.

30:40  3 bedroom, 4 bedroom, and 5 bedroom single-family homes. Screening tenants.

33:54  Florida Landlord-Tenant Law.

35:16  Property improvements.

38:10  Hurricanes and Jacksonville.

40:05  Rent-to-price ratio.

41:04  Minimum investment to get started, current inventory.

42:17  As a new client, provider pays up to $1,000 for your Jacksonville trip.

45:00  Our guest wrote three great Jacksonville turnkey RE investing reports you can get at: GetRichEducation.com/Jax

 

Resources Mentioned:

GetRichEducation.com/Jax

NoradaRealEstate.com

TheRealAssetInvestor.com/GRE

MidSouthHomeBuyers.com

GetRichEducation.com

 

Direct download: GREepisode120.mp3
Category:general -- posted at: 4:00am EDT

#119: Harry Dent is our guest today. He’s among the world’s best-known financial prognosticators. Does Harry still think the Dow Jones will fall to 6,000 points this year?

Dent answers questions most won’t: Where are real estate prices headed? Oil? Interest rates? Stock market? Inflation vs. Deflation? Gold? GDP growth?

Author, Economist, Demographer Harry Dent’s latest book, released this month, is called “The Sale Of A Lifetime: How The Bubble Burst Of 2017 Can Make You Rich”.

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive turnkey real estate investing opportunities.

Listen to this week’s show and learn:

01:28  Harry Dent likes making predictions. People listen because the depth of his research is so extensive.

05:16  Harry believes the stock market will trend up until the summer, then a potential crash begins.

10:30  Growth that the U.S. experienced in prior decades won’t return due to demographics.

12:53  Stock market bubble catalysts / indicators: Demographics, Trump, bonds.

15:30  How China’s overbuilt infrastructure affects you & the world.

19:42  Can Trump control demographics?

24:00  Dent: Why interest rates are headed up, then going lower than ever.

28:15  Which real estate will falter? Which will do well?

30:57  Dent: Mortgage interest rates will peak this year at 4% to 4.5%, bottoming around 2020.

33:07  Dent: In a downturn, positive cash-flowing residential real estate looks great.

33:53  Dent: Oil prices won’t go over $62. Could fall to $20-$30 again.

35:45  Dent: Deflation more likely than inflation. 5-10% inflation is impossible. Gold comments.

39:05  What can you do to position yourself  for prosperity?

44:30  Your demography is your destiny.

 

Resources Mentioned:

HarryDent.com

NoradaRealEstate.com

TheRealAssetInvestor.com/GRE

MidSouthHomeBuyers.com

GetRichEducation.com

 

Direct download: GREepisode119.mp3
Category:general -- posted at: 4:00am EDT

#118: What’s your risk tolerance? Keith discusses risk with mortgage loans for 1-4 unit properties, then for apartment building loans.

Later, Marco Santarelli joins Keith to tell you why they believe that real estate is the best asset class compared to stocks, businesses, commodities, and cash.

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive turnkey real estate investing opportunities.

Listen to this week’s show and learn:

01:37  Should you get a 30-year mortgage loan or 15-year?

05:02  Risk with apartment building loans - balloon terms, interest-only loans, prepayment penalties.

11:31  Keith’s personal habits and faults.

12:58  Get Keith’s free wealth-building newsletter is at GetRichEducation.com  Read Keith’s blog at GetRichEducation.blog

18:51  Marco Santarelli interview begins. “Why real estate?”

22:03  Real estate provides five profit centers at the same time.

23:00  What is an asset class?

25:24  Paper assets.

27:08  Stock dividends, options trading.

28:59  Commodities.

30:43  Investing in businesses.

34:18  Real estate investing.

35:32  Liquidity, control, passivity, stability.

37:20  Cash’s importance for emergencies, opportunity to fund a deal.

 

Resources Mentioned:

NoradaRealEstate.com

PassiveRealEstateInvesting.com

TheRealAssetInvestor.com/GRE

MidSouthHomeBuyers.com

GetRichEducation.com

 

Direct download: GREepisode118.mp3
Category:general -- posted at: 4:00am EDT

#117: Surprisingly, Alabama is one of the most economically forward-looking U.S. states.

Here’s why, and here’s how you can profit from this at the right time in the business cycle by investing in Birmingham income property.

Birmingham is Alabama’s largest city amidst a growing population, diverse economic sectors, and a business-friendly climate.

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Find turnkey real estate investing opportunities.

Listen to this week’s show and learn:

01:01  Alabama is one of the most economically forward-looking states in the U.S.

03:44  Geopolitical Strategist Peter Zeihan’s remarks about Alabama’s top ability to attract foreign capital.

05:22  Disloyalty to markets.

06:14  Don’t be a flipper or landlord. Be an investor.

08:00  Maureen McCann interview begins; Birmingham’s business sectors.

10:14  The right Birmingham submarkets and neighborhoods.

12:17  Average $104,000 purchase price, $1,050 rent, 3 BR/2 BA, 1,500 sf.

15:55  Renovation extent.

18:41  Tenant retention.

19:39  Property manager communication with you.

22:10  When you close, property is occupied 96% of the time.

25:12  Turnkey Provider and Property Manager all in-house.

27:44  Tenant screening.

29:29  Alabama as a landlord-friendly state.

30:28  Geographic pitfalls?

32:32  Choosing the right team.

34:45  Minimum investment to get started.

35:22  Learn more at GetRichEducation.com/Birmingham

38:00  “VIMTM.”

 

Resources Mentioned:

GetRichEducation.com/Birmingham

NoradaRealEstate.com

TheRealAssetInvestor.com/GRE

MidSouthHomeBuyers.com

Direct download: GREepisode117_1.mp3
Category:general -- posted at: 4:00am EDT

#116: Rich Dad Advisor Tom Wheelwright says that the U.S. could become a tax haven.

We discuss other potential tax changes that President-Elect Donald Trump will make.

Keith also recaps what happened in financial markets this year: real estate, stocks, gold, inflation, dollar index, interest rates and more.

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Find turnkey real estate investing opportunities.

Listen to this week’s show and learn:

01:42  This year: real estate up, stocks up, gold & silver up, dollar index even, interest rates up, inflation up, autonomous cars hit streets, Chinese yuan into IMF, Brexit, Trump election.

06:36  Robert Kiyosaki and Harry Dent predictions.

09:48  Donald Trump parallels with Ronald Reagan. No individual income tax reform in first term.

12:53  Tax rates won’t go up next year. Oil & gas tax benefits will be retained or expanded.

14:11  Carried interest.

17:59  Trump’s company lobbied for the “real estate professional” tax designation.  

21:28  Limit on itemized deductions coming?

23:32  Expect U.S. corporate taxes to be lowered down from 35%.

28:25  Trump wants a 15% “business tax rate.” Amnesty.

30:03  Why is the U.S. successful with such high corporate tax rates? 

31:10  Tom Wheelwright: The U.S. could become a tax haven!

32:37  How will we pay for tax reduction? Not growth, but even more debt.

34:08  Financial crash implications.

36:52  Here’s how you can act now.

40:37  Keith: Let’s lower tax rates, and increase the number of taxpayers.

 

Resources Mentioned:

TaxFreeWealthAdvisor.com or 866-467-5809

GetRichEducation.com

NoradaRealEstate.com

TheRealAssetInvestor.com/GRE

RidgeLendingGroup.com

RichDadAdvisors.com

 

Direct download: GREepisode116.mp3
Category:general -- posted at: 4:00am EDT

#115: Obtaining your RE license isn’t that difficult in many states. Would this help you land deals for income property?

Yes, and there are tons of other benefits...and drawbacks.

Kevin Cross of Foundations Real Estate Experts is a savvy real estate investor, licensee, and former President of the Anchorage Association of Realtors. He tells us the advantages and disadvantages of getting your RE license.

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Find turnkey real estate investing opportunities.

Listen to this week’s show and learn:

02:06  Keith likes BombBomb.com video-e-mail service and the Blinkist.com condensed reading app.

08:11  How can getting your RE license help you get into the deal flow?

12:20  Saving yourself the agent commission - and using that as a down payment.

15:06  The benefits you realize as an agent when you build a network of home inspectors, HVAC companies, roofers, etc.

18:27  When you sell property, act as your own agent. Referral fees.

24:59  Licensing requirements - educational hours, exam, licensing fees. Often $3,000 - $5,000 out-of-pocket to start.

26:55  Difficult to be a “part-time” agent.

28:48  You don’t get paid for 90 days.

31:16  Fiduciary responsibility and disclosure.

36:42  90% of sales are made by 10% of agents.

37:11  Do you split your commission with your broker? Must you have an office there?

41:06  After marketing fees and dues, agents earn about 1.5% per transaction.

 

Resources Mentioned:

GetRichEducation.com

NoradaRealEstate.com

TheRealAssetInvestor.com/GRE

RidgeLendingGroup.com

AlaskaREX.com

BombBomb.com

Blinkist.com

Direct download: GREepisode115.mp3
Category:general -- posted at: 4:00am EDT

#114: Your mental map is stimulated today as we discuss what geographies will be prosperous for real estate investors.

Geopolitical Strategist Peter Zeihan of Zeihan.com takes us on a virtual cross-country journey economically, geographically, and demographically.

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Find turnkey real estate investing opportunities.

Listen to this week’s show and learn:

03:46  The Mississippi River System promotes continental commerce. Luckily, it’s superimposed atop the U.S. agricultural belt.

06:47  Demographic luck.

13:54  Capital flight to “Gateway Cities”: Toronto, Montreal, Vancouver, Santa Monica, San Francisco, Seattle, New York City, and Miami.

17:38  “Reinvented Cities”: Oklahoma City, Austin, Salt Lake City, Charleston (SC).

20:05  Migration to low-cost-of-living cities.

25:27  New England.

26:58  New York.

28:42  Pennsylvania.

31:44  New Jersey through DC to the Carolinas.

34:22  Georgia.

36:21  Florida.

38:12  Alabama.

40:53  Tennessee.

43:12  Great Lakes Region.

44:11  Missouri.

45:16  Arkansas & Louisiana.

46:58  Texas.

50:01  Upper Great Plains.

51:07  Denver and Salt Lake City.

53:16  Arizona and Nevada.

56:53  California.

59:33  Washington and Oregon.

62:47  Alaska and Hawaii.

 

Resources Mentioned:

Zeihan.com

TheRealAssetInvestor.com/GRE

CorporateDirect.com

RidgeLendingGroup.com

GetRichEducation.com

Direct download: GREepisode114.mp3
Category:general -- posted at: 4:00am EDT

#113: You can be a lender instead of a borrower with Mortgage Note Investing. Real estate is your collateral, securing your loan.

Why would you want to give a loan to someone that can’t qualify for a bank loan? David Campbell from Hassle-Free Cash Flow Investing tells us why and how.

9-10% cash-flowing rates of return are common. Compared to buy-and-hold RE investing, this is more liquid, less risky, and incurs lower transaction costs.

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Find turnkey real estate investing opportunities.

Listen to this week’s show and learn:

07:05  Why now is a good time to move chips from the equity side to the debt side.

10:48  Mortgage Note Investing is also similar to terms like “Hard Money Lending,” or “Private Lending.” Also, discussion of Mortgage vs. Deed Of Trust.

15:45  Buy notes where the borrower has 20-25%+ equity in the property.

23:02  Mortgage Notes provide higher cash flows, less risk, more liquidity, lower transaction costs compared to owning real property.

26:47  Example on a $75,000 mortgage.

34:50  Use your IRA or HELOC to create arbitrage.

36:38  Knowing good from bad, and avoiding fraud.

43:14  Turn your equity into cash flow.

 

Resources Mentioned:

HassleFreeCashFlowInvesting.com/GRE

TheRealAssetInvestor.com/GRE

CorporateDirect.com

RidgeLendingGroup.com

GetRichEducation.com

Direct download: GREepisode113.mp3
Category:general -- posted at: 4:00am EDT