Get Rich Education (general)

Valhalla Wealth

165: Quitting Your Job and Time vs. Money with GRE’s Marcus Whelan

Direct download: GREepisode166_2_.mp3
Category:general -- posted at: 6:28am EDT

Wed, 27 June 2018

#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:

Valhalla Wealth

164: Rich Dad Advisor Darren Weeks Tells You How To Raise Capital For Deals

Direct download: GREepisode165_.mp3
Category:general -- posted at: 6:28am EDT

Wed, 27 June 2018

#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

Wed, 27 June 2018

163: Home Equity: Why Financially-Free Beats Debt-Free

#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.

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

Wed, 27 June 2018

162: Understanding Your Leverage Ratio with Investing in Real Estate with Clayton Morris | Investing for Beginners

#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

161: You Must Be Weird | Common Asset Protection Mistakes, and LLC Updates featuring Garrett Sutton

Direct download: GREepisode162.mp3
Category:general -- posted at: 6:27am EDT

Wed, 27 June 2018

#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

160: 19 Fatal Turnkey RE Investor Mistakes with Terry Kerr & Liz Nowlin

Direct download: GREepisode161.mp3
Category:general -- posted at: 6:27am EDT

Wed, 27 June 2018

#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:

159: Real Estate Negotiation with the American Negotiation Institute's Founder, Kwame Christian

Direct download: GREepisode160_1.mp3
Category:general -- posted at: 6:27am EDT

Wed, 27 June 2018

#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

158: Massive Cash Flow From Assisted Living Homes with Gene Guarino

Direct download: GREepisode159.mp3
Category:general -- posted at: 6:27am EDT

Wed, 27 June 2018

#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

157: Cash Flow From Agricultural Real Estate with David Sewell

Direct download: GREepisode158_1.mp3
Category:general -- posted at: 6:26am EDT

Wed, 27 June 2018

#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

156: Meet Nick Bond: Age 22, College Graduate, Unemployable

Direct download: GREepisode157.mp3
Category:general -- posted at: 6:26am EDT

Wed, 27 June 2018

#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

155: Savvy Real Estate Investing and Flipping with Abhi Golhar of Think Realty Radio

Direct download: GREepisode156.mp3
Category:general -- posted at: 6:24am EDT

Wed, 27 June 2018

#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

154: Specialty Mortgage Loan Products (After 10 Properties) with Ridge Lending Group’s Caeli Ridge

Direct download: GREepisode155_1.mp3
Category:general -- posted at: 6:24am EDT

Wed, 27 June 2018

#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:

153: State Of The Real Estate Market, Housing Affordability, Hurricanes

Direct download: GREepisode154.mp3
Category:general -- posted at: 6:24am EDT

Wed, 27 June 2018

#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

152: Missouri Markets: St. Louis and Kansas City RE Investing

Direct download: GREepisode153.mp3
Category:general -- posted at: 6:23am EDT

Wed, 27 June 2018

#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

151: Quitting Your Job For Passive Income with GRE Listener Douglas Orr

Direct download: GREepisode152.mp3
Category:general -- posted at: 6:23am EDT

Wed, 27 June 2018

#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

150: Your Real Estate Portfolio Architecture

Direct download: GREepisode151.mp3
Category:general -- posted at: 6:23am EDT

Wed, 27 June 2018

#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

149: Investing with Little Rock Turnkey featuring Jeremy Veldman

Direct download: GREepisode150.mp3
Category:general -- posted at: 6:23am EDT

Wed, 27 June 2018

#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

148: Income Property, Frothy Markets, and Brien Lundin of The New Orleans Investment Conference and Gold Newsletter Podcast

Direct download: GREepisode149_1.mp3
Category:general -- posted at: 6:23am EDT

Wed, 27 June 2018

#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

147: How To Invest Outside Banks and Wall Street with Patrick Donohoe of The Wealth Standard – Empowering Individual Financial Independence

Direct download: GREepisode148_1.mp3
Category:general -- posted at: 6:22am EDT

Wed, 27 June 2018

#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

146: Using Debt For Investment

Direct download: GREepisode147.mp3
Category:general -- posted at: 6:22am EDT

Wed, 27 June 2018

#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

145: Real Estate vs. Stock Investing with Financial Advisor, Brent Sutherland

Direct download: GREepisode146.mp3
Category:general -- posted at: 6:22am EDT

Wed, 27 June 2018

#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

144: Cash Flow Market Profile: Indianapolis, Indiana

Direct download: GREepisode145.mp3
Category:general -- posted at: 6:22am EDT

Wed, 27 June 2018

#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

143: Your 1031 Exchange Guide: Tax-Deferral For Life

Direct download: GREepisode144.mp3
Category:general -- posted at: 6:21am EDT

Wed, 27 June 2018

#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

142: Today’s Lessons From The Housing Crisis and Mortgage Meltdown of 2007-2009

Direct download: GREepisode143_1.mp3
Category:general -- posted at: 6:20am EDT

Fri, 30 June 2017

#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

141: Real Estate Hedonics and Listener Questions

Direct download: GREepisode142_1.mp3
Category:general -- posted at: 4:00am EDT

Fri, 23 June 2017

#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:

140: Advantages Of Single-Family Income Property with David Campbell

Clickbank.com | Kajabi.com

Direct download: GREepisode141.mp3
Category:general -- posted at: 4:00am EDT

Fri, 16 June 2017

#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

139: Time vs. Money, Housing Inventory Shortage, Renting vs. Owning Your Home

Direct download: GREepisode140_1.mp3
Category:general -- posted at: 4:00am EDT

Fri, 9 June 2017

#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

New GRE Book: 7 Money Myths That Are Killing Your Wealth Potential

Direct download: GREepisode139.mp3
Category:general -- posted at: 4:00am EDT

Tue, 6 June 2017

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

Fri, 2 June 2017

138: Next-Level and Urban Real Estate Investing with Victor Menasce of Real Estate Espresso

#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

137: GRE Listener Eric Pratt Tells How He Built $3,600 Passive Monthly Income with Turnkey Property

Direct download: GREepisode138.mp3
Category:general -- posted at: 4:00am EDT

Fri, 26 May 2017

#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:

Birmingham Turnkey Property

136: Give Yourself A Pay Raise Today - Here’s How

Guest E-mail: pratts@ak.net

Direct download: GREepisode137_1.mp3
Category:general -- posted at: 4:00am EDT

Fri, 19 May 2017

#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

135: From $50 Million To Zero: Falling From The Top Of The Real Estate Mountain

Direct download: GREepisode136.mp3
Category:general -- posted at: 4:00am EDT

Fri, 12 May 2017

#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

134: Quit Overpaying Your Taxes with Tom Wheelwright

SpotCrime.com

Direct download: GREepisode135.mp3
Category:general -- posted at: 4:00am EDT

Fri, 5 May 2017

#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

133: Your Income Property Loan with Graham Parham

Direct download: GREepisode134.mp3
Category:general -- posted at: 4:00am EDT

Fri, 28 April 2017

#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

132: Weapons Of Mass Production with Seth Williams of The REtipster Podcast

Direct download: GREepisode133.mp3
Category:general -- posted at: 4:00am EDT

Fri, 21 April 2017

#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

131: Ken McElroy | What Your Tenant Wants Today

Direct download: GREepisode132_1.mp3
Category:general -- posted at: 4:00am EDT

Fri, 14 April 2017

#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

130: America’s Money Answers Man: Jordan Goodman

Direct download: GREepisode131_1.mp3
Category:general -- posted at: 4:00am EDT

Fri, 7 April 2017

#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

Article: 10 U.S. Cities With Biggest Housing Shortages

CommercialRealEstateIncomeFunds.com

VerifyMyMortgage.com

VerifyMyEscrow.com

Direct download: GREepisode130.mp3
Category:general -- posted at: 4:00am EDT

Fri, 31 March 2017

129: Finding Good Real Estate Deals In A Strong Market: Dallas, TX

#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

128: Five Money Myths That Are Killing Your Wealth Potential

Direct download: GREepisode129_1.mp3
Category:general -- posted at: 4:00am EDT

Fri, 24 March 2017

#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

127: Don’t Be Debt-Free. Be Financially-Free.

Direct download: GREepisode128.mp3
Category:general -- posted at: 4:00am EDT

Fri, 17 March 2017

#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:

126: Robert Kiyosaki | You Are The President Of Your Own Life

Direct download: GREepisode127.mp3
Category:general -- posted at: 4:00am EDT

Fri, 10 March 2017

#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

125: Passive Income from Agricultural Real Estate with David Sewell

Direct download: GREepisode126_1.mp3
Category:general -- posted at: 4:00am EDT

Fri, 3 March 2017

#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

124: Mobile Home Parks and Real Estate Investing for Cash Flow with Kevin Bupp

Direct download: GREepisode125.mp3
Category:general -- posted at: 4:00am EDT

Fri, 24 February 2017

#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

123: Mistakes To Avoid In Real Estate Investing

Direct download: GREepisode124.mp3
Category:general -- posted at: 4:00am EDT

Fri, 17 February 2017

#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

122: Resort Investing All-Done-For-You with Dave Zook

Direct download: GREepisode123_new-pre-roll.mp3
Category:general -- posted at: 4:00am EDT

Fri, 10 February 2017

#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:

121: Your Money Mindset with Hilary Hendershott of Profit Boss Radio

Direct download: GREepisode122.mp3
Category:general -- posted at: 4:00am EDT

Fri, 3 February 2017

#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

120: Jacksonville Turnkey Real Estate Investing with Gregg Cohen

MortgageNewsDaily.com

Direct download: GREepisode121.mp3
Category:general -- posted at: 4:00am EDT

Fri, 27 January 2017

#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

119: Harry Dent | Market Predictions 2017 - 2019

Direct download: GREepisode120.mp3
Category:general -- posted at: 4:00am EDT

Fri, 20 January 2017

#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

118: Why Real Estate Beats Other Asset Classes with Marco Santarelli

Direct download: GREepisode119.mp3
Category:general -- posted at: 4:00am EDT

Fri, 13 January 2017

#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:

PassiveRealEstateInvesting.com

117: Birmingham Turnkey Real Estate Investing with Maureen McCann

Direct download: GREepisode118.mp3
Category:general -- posted at: 4:00am EDT

Fri, 6 January 2017

#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

116: Trump’s Tax Plan featuring Tom Wheelwright

Direct download: GREepisode117_1.mp3
Category:general -- posted at: 4:00am EDT

Fri, 30 December 2016

#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

115: Should You Become A Real Estate Agent? With Kevin Cross

RichDadAdvisors.com

Direct download: GREepisode116.mp3
Category:general -- posted at: 4:00am EDT

Fri, 23 December 2016

#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:

114: U.S. Geography and Real Estate Investing with Peter Zeihan

AlaskaREX.com

BombBomb.com

Blinkist.com

Direct download: GREepisode115.mp3
Category:general -- posted at: 4:00am EDT

Fri, 16 December 2016

#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

113: Create Cash Flow By Lending with David Campbell

Direct download: GREepisode114.mp3
Category:general -- posted at: 4:00am EDT

Fri, 9 December 2016

#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

112: 401(k) Plans Destroy Your Dreams

Direct download: GREepisode113.mp3
Category:general -- posted at: 4:00am EDT

Fri, 2 December 2016

#112: Two undercover thieves are robbing you of your dreams. They’re stealing your prosperity both now and in the future.

This is why people think they’re “getting ahead,” but they’re falling behind.

Learn about the problems with 401(k)s and inflation - it’s even worse than you think. Learn how to get on top of this and get empowered today.

Keith brings you today's show from Dallas, TX.

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:

02:33 Be unusual.

03:33 A terribly naive statement: “Socking away money in your 401(k) will make you a millionaire.”

07:08 401(k) saving is misdirected. It’s herd mentality pumped up by a billionaire-dollar Wall Street marketing campaigns.

09:40 History of the 401(k) and Ted Benna, creator of the Plan. “Salary Reduction Plans.”

13:35 Dollar-for-dollar matches in 401(k)s.

17:12 A 401(k) is a ZERO cash flow plan.

24:24 The secret monthly bill that you don’t know that you’re paying.

26:57 Real ROI vs. Nominal ROI: How “winning” is really losing.

28:38 Taxation is not adjusted for inflation.

30:40 The first step to solving your problem is recognizing that there is one.

32:04 Your real estate cash flow increases faster than inflation over time. See at: GetRichEducation.com/videos

Resources Mentioned:

TheRealAssetInvestor.com/GRE

CorporateDirect.com

RidgeLendingGroup.com

GetRichEducation.com

Ted Benna and 401(k) history

Direct download: GREepisode112.mp3
Category:general -- posted at: 4:00am EDT

Fri, 25 November 2016

111: Apartment Building Investing All-Done-For-You with Dave Zook

#111: Looking for passive income but can’t find an attractive real estate deal in today’s climate?

Invest with a trusted, savvy investor that’s an expert in identifying profitable apartment building deals for others.

Dave Zook, Founder Of The Real Asset Investor, has a remarkable track record of providing reliable returns to investors.

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:

05:05 Entering real estate for tax mitigation reasons.

07:40 Rich Dad influence.

09:15 Many wealthy people are willing to invest in 1% yield CDs!

11:26 Planting the seeds of real estate syndication. How to stay in the “deal flow.”

12:57 The people are more important than the product. Which people are “real” and which are not?

15:45 Multifamily property in Memphis.

20:03 Forced appreciation.

22:31 Dave is successful because he considers his investors’ need, not his need.

24:08 Value-add property improvements include a high-tech video surveillance system.

26:26 Dave’s investors benefit in ways that direct investors don’t.

28:38 Dave puts his own “skin-in-the-game” alongside his investors. He has a vested interest in property performance.

30:05 Investors paid quarterly: 8-11% Cash-On-Cash Return. High teens to 25%+ Internal Rate Of Return.

31:44 Taxes. Accelerated depreciation (from Cost Segregation) gets passed along to each investor.

33:41 Annual investor barbecue.

35:03 Win a free real estate field trip to Memphis or Belize at www.TheRealAssetInvestor.com/GRE

36:14 Advantages to investing in a trusted expert’s syndication.

Resources Mentioned:

110: Being Wealthy Is A Choice

Direct download: GREepisode111.mp3
Category:general -- posted at: 4:00am EDT

Fri, 18 November 2016

#110: Wealth and fulfillment are matters of your personal choice.

"Being Wealthy Is A Choice" is something that I didn’t believe when I first read it in a Robert Kiyosaki book 15 years ago. Now, I know that it’s true.

Learn how to choose wealth. Be bold. Live where you want to live.

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:

02:12 You need to believe that being wealthy is a choice.

03:26 You’re unfulfilled because you spend too much time at your job.

06:20 Live where you want to live

09:09 Be bold.

13:14 Disable notifications.

13:53 Associate with people whose future is bigger than their past.

15:17 Fear and doubt destroy more dreams than failure ever does.

16:24 Die with memories, not dreams.

22:52 You’re paid five ways at the same time with RE investing.

30:05 Risk.

Resources Mentioned:

Article: The 5 Ways You’re Paid In RE Investing

CorporateDirect.com

NoradaRealEstate.com

RidgeLendingGroup.com

GetRichEducation.com

Direct download: GREepisode110.mp3
Category:general -- posted at: 4:00am EDT

Fri, 11 November 2016

109: Memphis Turnkey Real Estate Investing with Mid South Home Buyers

#109: Memphis, Tennessee is the longtime King Of Real Estate Cash Flow.

Mid South Home Buyers in Memphis is the turnkey company with smart systems and great service. Learn how they got their advantage.

Founder Terry Kerr and Investment Coordinator Liz Nowlin tell us what makes Memphis unique.

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:

02:44 Return From Equity (RFE) and Return On Equity (ROE) are two different things.

06:18 Equity positioning is key to your investing strategy.

07:18 Volatile markets vs. Stable markets.

10:23 Terry Kerr and Liz Nowlin interview begins.

12:15 Mid South Home Buyers manages 1,450 properties, 98%+ occupancy, 77%+ of tenants renew their leases.

14:28 Memphis is a distribution hub.

15:27 52% of Memphis residents rent rather than own.

17:33 Some turnkey providers “mark up” materials.

20:58 The best-renovated houses in Memphis: roofs, HVAC, kitchen, bathroom, electrical, plumbing, flooring, more.

23:48 Under-market rent amounts.

24:40 Warehousing of materials creates efficiencies.

25:49 Communication.

29:07 A larger pool of tenants to select from.

Resources Mentioned:

MidSouthHomeBuyers.com

CorporateDirect.com

NoradaRealEstate.com

RidgeLendingGroup.com

GetRichEducation.com

Direct download: GREepisode109.mp3
Category:general -- posted at: 4:00am EDT

Fri, 4 November 2016

108: Renting vs. Buying Your Home with Kirk Chisholm

#108: Should your rent or own your primary residence?

Consider feelings, equity buildup, control, leverage, personal cash flow, mobility, inflation, taxes, liquidity, opportunity cost, sunk costs, and much more.

Innovative Advisory Group’s Kirk Chisholm joins Keith for the chat. Keith tells you how much his home is worth.

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:

02:55 Your home is not an asset.

08:51 Why throw away money on rent?

12:15 Rental “stigma.”

16:10 Liquidity.

17:50 Sunk costs like furniture, maintenance, amenity obsolescence.

20:14 Inflation, leverage, appreciation.

23:57 Three methods to help you determine to rent or buy.

27:51 Wider selection of homes to buy than rent.

30:41 Rent-To-Value Ratio.

34:08 Today’s low homeownership rates.

35:19 “Touchy feely things.”

39:31 Rent vs. Buy Calculator.

40:30 Keith’s home valuation and whether he rents or buys.

42:21 Be the second owner of a home.

Resources Mentioned:

InnovativeWealth.com/GRE

Kirk Chisholm’s Rent vs. Buy article

CorporateDirect.com

NoradaRealEstate.com

RidgeLendingGroup.com

GetRichEducation.com

Direct download: GREepisode108.mp3
Category:general -- posted at: 4:00am EDT

Fri, 28 October 2016

107: Garrett Sutton | Protect Your Real Estate with LLCs

#107: Rich Dad Advisor Garrett Sutton is our guest today. His firm, Corporate Direct, offers smart asset protection and simplifies what seems complex.

Keith is back in Anchorage, AK for today’s show.

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:

02:12 Rely on your team. You don’t need to know everything.

04:52 “12 Reasons It’s A Great Time To Be A Real Estate Investor.”

11:20 Garrett Sutton interview begins.

12:45 Charging orders.

14:48 States offer different protections. You can “borrow” from the best state’s protection.

17:05 Texas asset protection.

22:24 Protecting yourself when you own real estate in multiple states.

25:04 Equity stripping.

26:18 Why Garrett wrote his new book, Toxic Client.

28:12 “Entitlementia.”

31:24 Why many attorneys get asset protection wrong.

33:18 When Robert Kiyosaki was famously sued, Here's how Garrett protected him.

34:14 Corporate Direct’s affordable fees. $695, or $595 for GRE listeners.

Resources Mentioned:

Phone Corporate Direct 1-800-600-1760

Amazon: Toxic Client book

Entitlementia.com

106: Quitting Your Job and Passive Income with GRE’s John Collins

Direct download: GREepisode107.mp3
Category:general -- posted at: 4:00am EDT

Fri, 21 October 2016

#106: With enough passive income to meet your living expenses, you can potentially quit your job. GRE’s Business Developer John Collins just quit his job. He tells us how it feels.

Keith brings you the show from Ontario, Canada today.

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:

02:38 How close are you to quitting your job? The PPY.

05:42 A metaphor about life being the journey, not the destination.

07:40 If the Dow Jones rises from 19,000 to 20,000 points, that’s NOT a gain!

10:41 With zero financial education, stocks are better than real estate. With some education, real estate is better.

12:08 Monthly property management statements.

15:50 The jet pilot.

19:12 GRE’s John Collins quit his job that paid $100K-$200K per year.

22:47 Overcoming fear of leaving the job.

24:32 Nothing dispels fear like education; social connections.

28:48 Altering your life structure.

32:35 Do you still know when it’s “Payday” at your employer?

36:40 Feel of the “corporate-ocracy.”

39:09 With more passive income, here’s how you’ll begin thinking differently than your co-workers.

41:15 Entrepreneurship is not for everybody. “Turnkey job.”

Resources Mentioned:

Book: “Pivot” by Jenny Blake

105: Texas Turnkey Real Estate Investing with Carl Dean

Direct download: GREepisode106_1.mp3
Category:general -- posted at: 4:00am EDT

Fri, 14 October 2016

#105: Texas is a job creation juggernaut. Companies are being lured to Texas at a staggering rate by a business-friendly environment, low labor costs, and tax incentives.

Texas is where you have some of the fastest-growing, most economically stable markets in the nation.

Your durable rent income comes from tenant jobs. Learn about how to get into this market with an award-winning turnkey real estate investment provider at GetRichEducation.com/Texas.

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:

03:29 Turnkey real estate investing defined.

04:44 Win-wins.

05:16 Why turnkey RE is not too good to be true.

09:30 A “Tenant Inspection Report.”

11:34 Carl Dean interview begins.

13:39 Carl moved to Texas because that’s where the jobs and better properties are.

15:05 Is the Texas RE market overheating?

18:02 Medical, financial sectors. More than just oil.

20:19 Migration into Texas.

21:53 Property taxes.

24:03 Price sweet spot of $140K-$250K. Rent-to-value ratios.

25:15 Lease duration and 5% rent increases each year.

29:40 Plano and Frisco often have price points that exceed the cash flow “sweet spot.” Fort Worth and south Dallas areas are generally better.

32:18 3 Bed / 2 Bath single-family homes are the minimum size criterion.

35:07 Exit strategy.

37:58 A “cheap” property isn’t enough for an investor.

38:50 Placing the right tenant. Minimum $1,200 rent amount.

41:04 How does Carl find his inventory?

45:17 Cash flow in Texas vs. other markets.

Resources Mentioned:

GetRichEducation.com/Texas

Trulia.com

104: T. Harv Eker | Secrets Of The Millionaire Mind

Direct download: GREepisode105.mp3
Category:general -- posted at: 4:00am EDT

Fri, 7 October 2016

104: T.Harv Eker is our guest today. His mega-popular seminars and book, “Secrets Of The Millionaire Mind: Mastering The Inner Game Of Wealth” have transformed countless lives.

Harv tells you: “Think Rich To Get Rich.”

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:

03:58 What do you really want in your life?

09:04 Thoughts > Feelings > Actions > Results

11:28 Your mind is set to a “Wealth Thermostat.”

14:37 How to change your Wealth Thermostat: 1) Awareness. 2) Understanding. 3) Reconditioning.

19:24 Your thought influences are: verbal conditioning, modeling, specific incidents.

20:35 Are rich people evil?

26:08 Is it ethical to make passive income?

32:15 How rich people specifically think differently than most people.

34:50 The Bible and wealth.

39:14 Dealing with your disapproving family members.

44:28 Seminars.

45:10 How to win the money game.

50:31 The importance of passive income is freedom.

55:20 “SpeedWealth” has 8 principles.

Resources Mentioned:

Get SpeedWealth free at HarvEkerOnline.com/GRE

Secrets Of The Millionaire Mind - book

103: Tax-Free Real Estate with Tom Wheelwright

Direct download: GREepisode104_1.mp3
Category:general -- posted at: 4:00am EDT

Fri, 30 September 2016

#103: Tom Wheelwright is a tax genius and regular contributor here. He’s the Founder and CEO of ProVision Wealth, which prepares Keith’s tax returns. TaxFreeWealthAdvisor.com

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:

04:04 Every dollar of your income is either taxable or not taxable.

08:08 How you are double and triple-taxed.

09:59 How tax depreciation works for real estate investors.

13:33 Cost segregation.

16:10 Why Donald Trump won’t release his tax return.

20:14 Here’s when you start a tax and asset protection strategy.

23:40 Holding your real estate in an LLC vs. “S” Corp.

25:55 IRS audits and taking deductions.

28:06 Garrett Sutton.

29:40 Picking the wrong lawyer.

32:48 Audit prevention: 1) Documentation. 2) Competent tax preparer. 3) Don’t talk to the IRS.

Resources Mentioned:

TaxFreeWealthAdvisor.com or call 866-467-5809

102: Overcoming Tragedy and Investing with Ben Leybovich

Direct download: GREepisode103.mp3
Category:general -- posted at: 4:00am EDT

Fri, 23 September 2016

#102: Hardship in your life changes your mindset, goal, timetable, and your investing risk tolerance.

It changes how your think about your “Return On Time Invested.” Meet Ben Leybovich.

Want more wealth? Visit www.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:

03:39 Ben Leybovich Interview begins.

05:30 Ben is diagnosed with Multiple Sclerosis.

07:40 A process of elimination brings Ben to real estate investing.

11:08 Emotional investing.

14:20 Unlike Keith, Ben self-manages his properties. He uses Buildium.com.

16:40 ROI.

30:18 Cash flow rises faster than inflation when you’re leveraged.

32:45 Guesswork - rent escalators, fixed mortgage interest rate duration.

33:43 Real estate environment in 2016.

36:50 Ben likes buying “below market.” Underwrite to fundamentals.

39:26 Regional housing markets.

44:19 Ten years ago, U.S. housing prices were 24% higher than today, adjusted for inflation.

Resources Mentioned:

JustAskBenWhy.com

Buildium.com

101: Geography and Real Estate Investing with Peter Zeihan

Direct download: GREepisode102.mp3
Category:general -- posted at: 4:00am EDT

Fri, 16 September 2016

101: Geography is hugely important to real estate investing, economics, demography, and geopolitics.

Peter Zeihan has a remarkable grasp on “location, location, location.”

Learn the case for why the United States is not in decline. It will continue as a global superpower.

Want more wealth? Visit www.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:

04:01 The case that America is positioned to continue as a financial, agricultural, and industrial superpower.

06:05 Rivers.

08:38 Urban centers.

10:00 Geography shapes cultural isolation and integration.

13:16 Diffusion of ideas and technology.

14:55 3-D printing changing the geography of distribution.

23:35 Oil and petroleum.

30:28 Inflation vs. Deflation.

33:16 Japan.

38:23 Which countries will prosper.

42:14 Can another nation be like the United States?

43:05 U.S. Midwest, Texas looks great for growth. Alabama.

45:36 Gateway cities: San Francisco, Santa Barbara, New York, Miami and Seattle.

Resources Mentioned:

Zeihan.com

The Accidental Superpower (book)

100: 100th Episode Special with GRE’s John Collins

Direct download: GREepisode101_1.mp3
Category:general -- posted at: 4:00am EDT

Fri, 9 September 2016

#100: How to measure your wealth, a fun retrospective of the first 100 episodes, and a visit from GRE’s Business Developer John Collins.

Want more wealth? Visit www.GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities.

Listen to this week’s show and learn:

03:25 Let’s measure your wealth. Right now. Here’s how.

06:12 Favorite GRE mantras and catchphrases.

09:16 How to increase your wealth. Determine your “PPY” and convert equity to cash flow.

13:02 Traffic and commuting. Appreciate what you’ve already got while you expand.

17:58 A memorable look back at some noteworthy GRE episodes.

28:31 GRE’s John Collins appears.

33:07 Real estate’s advantages and five profit centers.

34:16 Awareness of outdated investment paradigms.

35:05 Nearly every dollar you spend is related to real estate.

37:40 If you wait until you’re old to be gratified, did you win?

38:50 Sabbaticals.

43:30 Exposure to fresh ideas multiplies you in “unthought of” ways.

Resources Mentioned:

99: Investor Mortgage Loan FAQs with Ridge Lending Group’s Caeli Ridge

Direct download: GREepisode100.mp3
Category:general -- posted at: 4:00am EDT

Fri, 2 September 2016

#99: Income property investors’ most commonly asked mortgage questions are answered by Ridge Lending Group President and CEO Caeli Ridge.

There’s a lot of good news - the lending environment is loosening. www.RidgeLendingGroup.com

Want more wealth? Visit www.GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities.

Listen to this week’s show and learn:

02:39 This episode is about conventional financing of income property.

02:58 Next week’s milestone Episode 100 will be special.

04:57 Caeli Ridge interview begins.

07:54 Seasoning of funds. Gift funds.

10:27 Reserve requirements. 60% of your retirement funds qualify for reserves.

13:37 LLCs. Married couples.

15:10 How wife & husband can get 20 conventional loans.

17:17 Cash-out refinances: two types - standard and delayed.

26:05 DTI - Debt-To-Income Ratio. 50% maximum.

28:00 How your DTI changes when you add a rental property.

31:23 Credit score.

33:39 How the mortgage lending industry is loosening, not tightening.

34:25 It’s now up to 80% LTV for your first ten financed single-family income properties.

Resources Mentioned:

98: Cap Rate, Cash-On-Cash Return, and Equity Management

Direct download: GREepisode99.mp3
Category:general -- posted at: 4:00am EDT

Fri, 26 August 2016

#98: Turn your $100K into $300K over five years with five turnkey income properties. See exactly how. Also, Cap Rate, Cash-On-Cash Return, and Equity Management are explored.

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities.

Listen to this week’s show and learn:

01:03 Special technique to help you get more rent for your property.

04:37 How to add value to a multifamily property via NOI and Cap Rate.

08:58 Cap Rates versus Cash-On-Cash Return.

11:51 Neighborhood character affecting valuation.

13:50 How to create wealth with five turnkey properties over five years.

21:24 Amazon lockers are changing apartment buildings and consumer behaviors.

25:02 Keith’s HELOC application was denied! Details.

27:02 Earthquakes. The return from home equity is zero.

31:29 The borrower is in control of a loan, not the lender.

32:22 Why “Live Below Your Means” Is Bad Advice.

Resources Mentioned:

97: Assisted Living Homes Create Massive Cash Flow with Gene Guarino

Direct download: GREepisode98.mp3
Category:general -- posted at: 4:00am EDT

Fri, 19 August 2016

#97: Generate $36,000 of monthly income and $10,000 of monthly cash flow per single-family residence used as an Assisted Living Home (ALH).

Demographics tell the story. Our aging population means there will be more need for senior housing.

Gene Guarino of the Residential Assisted Living Academy tells us why and how to own and operate ALHs.

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities.

Listen to this week’s show and learn:

01:05 Get $5,000 - $15,000 cash flow per month from one single-family home.

01:37 Upcoming guests on future shows include T. Harv Eker and Tom Wheelwright.

02:50 40 million senior citizens today will balloon to 89 million by 2050.

05:15 Single-family homes - not giant institutional complexes - are a great niche for the individual investor / businessperson.

08:09 Don’t be involved in the day-to-day operation of the ALH.

09:13 Ideal ALH location. Home size 300-500 sf per person.

13:20 No commercial kitchen. Grab bars, wide doors.

14:18 Profit & Loss Statement. $36,000 / monthly avg. income for ten private rooms in one ALH.

17:51 Owning vs. Leasing the real estate to operate your ALH.

19:43 Zoning, Licensing, Liability Insurance.

27:13 How do you find an ALH?

31:19 State-administered trainings vs. business-oriented trainings.

32:39 Financing.

37:15 Occupying your ALH with residents.

39:27 “Mom & Pop” ALHs.

42:04 Caring for others.

43:35 What does an ALH manager do?

45:00 Gene shows others how to provide ALHs with a live 3-day Training, and at RALAcademy.com

Resources Mentioned:

RALAcademy.com

96: Keith Weinhold Interviewed about Abundance and Leverage

Direct download: GREepisode97_01.mp3
Category:general -- posted at: 4:00am EDT

Fri, 12 August 2016

#96: Keith’s story about starting in real estate, how to think abundantly, and leveraging the efforts of others to create wealth for yourself. Keith is interviewed by Kathy Fettke.

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities.

Listen to this week’s show and learn:

03:20 Before you expand, appreciate what you already have.

05:44 Avoid the crowd constantly focused on “spending less.” They live half-dead.

08:41 An inspirational Dale Partridge quote to live by.

12:19 Starting big. Most people move & follow the money. Instead, make money follow you this way.

14:03 Buying a four-plex: 3.5% down, 12 months owner-occupy, minimum 580 FICO score.

15:51 Utilizing other people’s money.

18:26 Compound interest is lame and slow. Here’s why.

22:28 Don’t be debt free. Be financially free.

23:56 In RE investing, the property is only the fourth most important thing.

24:50 Here’s how Keith expanded his real estate portfolio with other people’s money.

27:30 Investment RE markets in Dallas-Fort Worth, and Anchorage, AK.

29:43 Value your time.

33:57 A bar of iron costs $5. What will you turn it into?

Resources Mentioned:

95: Why The U.S. Real Estate Market Is Special

Direct download: GREepisode96.mp3
Category:general -- posted at: 4:00am EDT

Fri, 5 August 2016

#95: The United States real estate market is compared with those in Australia and Japan.

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities.

Listen to this week’s show and learn:

02:18 Poor stands for Passing Over Opportunity Repeatedly - P.O.O.R.

04:00 A re-cap of Keith’s story.

07:10 Reasons why the U.S. real estate market is special.

09:14 Largest economies by GDP.

13:57 Australian real estate market overview with Marcus Whelan.

21:18 Japanese real estate market overview with Marcus Whelan.

27:14 Why the U.S. is special for income property, and business opportunity.

30:46 English-speaking is a major advantage that’s taken for granted.

32:45 Time vs. Money.

Resources Mentioned:

World's largest economies by GDP

94: Investing Your IRA in Real Estate with Mauricio Rauld

Direct download: GREepisode95.mp3
Category:general -- posted at: 4:00am EDT

Fri, 29 July 2016

#94: Self-Directed IRAs and Checkbook IRAs potentially enable you to invest your IRA funds into income real estate, coffee farms, a vacation home, gold, a business, and more.

But there are rules to follow.

Today’s guest made an educational video to help you learn about this: www.premierlawgroup.net/gre

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities.

Listen to this week’s show and learn:

01:52 Your Individual Retirement Account (IRA) doesn’t have to be invested in mutual funds.

03:47 Even if you don’t own an IRA, you want to know this in case you aggregate other investors’ money.

05:20 Right after college, Keith admits he actually used to think it was smart to invest in 401(k)s and IRAs. Once enlightened, he tore it down.

07:23 Keith tells you who his Self-Directed IRA custodian is.

12:52 Mauricio Rauld Interview.

14:27 What is a Self-Directed IRA (SDIRA)?

16:17 With a SDIRA, what can you invest in? What’s prohibited?

20:08 Checkbook IRAs.

21:40 What a custodian does. What your limitations are.

24:28 Liquidity - how fast can you use your IRA funds?

25:42 Planning. It’s often best to fund your SDIRA with one larger lump sum.

27:11 Real estate leverage and a SDIRA.

29:53 LLC protection with Checkbook IRAs.

31:05 One option is to just dismantle your IRA.

32:40 Traditional vs. Roth IRAs.

35:00 How you actually set up a SDIRA / Checkbook IRA.

Resources Mentioned:

www.premierlawgroup.net/gre

93: Is Single-Family Income Property The Best Investment Anywhere?

Direct download: GREepisode94_3.mp3
Category:general -- posted at: 4:00am EDT

Fri, 22 July 2016

#93: U.S. Single-Family Homes rented as income property could be the best investment class on earth today. Here’s why, and here’s how to be strategic about it.

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities.

Listen to this week’s show and learn:

02:15 Most people mistakenly think “real estate investing” means “house flipping.”

04:06 Keith is now a Contributing Author at Kiyosaki’s Rich Dad Advisors blog.

06:35 The S&P 500 Index recently closed at an all-time high. Who cares?

08:50 Size of the U.S. single-family rental market.

10:15 Demographic demand for SFHs.

12:35 SFHs: low cost, time value of money, liquidity, divisibility, school district.

16:00 Buy in 3-5 geographic markets.

18:42 Good turnkey providers avoid property in “war zones.”

23:04 Recession resistance.

23:42 Condominiums.

24:53 No common walls mean problems are confined.

25:57 Utilities, tenant quality, tenant psychology.

27:46 Autonomous cars and technology.

31:20 Rent-To-Value (RV) Ratios.

32:01 Single-Family Income Property “poetry.”

Resources Mentioned:

Keith’s first Rich Dad Advisors blog article

LittleRockTurnkey.com

92: Discover Your Investor DNA | Wealth Labs with Garrett Gunderson

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Direct download: GREepisode93.mp3
Category:general -- posted at: 4:00am EDT

Fri, 15 July 2016

#92: Garrett Gunderson is our guest today. A polished and articulate speaker, he leads Wealth Factory to help you build wealth with limited risk.

He helps you find spendable cash that you didn’t even know you had. He tells you why 401(k) plans are awful.

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities.

Listen to this week’s show and learn:

02:33 Garrett was kicked off CNBC for telling the truth about stocks and diversification.

05:12 Where Garrett’s “abundance mindset” began. His upbringing in coal-mining Price, Utah.

08:30 A millionaire is not financially wealthy. Think bigger.

11:04 “Financial planners” and “advisors” are just commission-based salespeople.

12:45 Myths to avoid.

15:15 Long-term, stocks return zero or post negative returns.

19:42 Cash flow matters more than net worth.

21:02 Your four types of expenses.

27:03 Discover your “Investor DNA.”

30:33 “Budget” should be a swear word.

33:00 How Get Rich Education differs from Dave Ramsey.

34:59 401(k) plans are terrible.

46:10 Find Garrett at WealthFactory.com.

Resources Mentioned:

WealthFactory.com

91: A Rich Man Digs For Gold

Direct download: GREepisode92_1.mp3
Category:general -- posted at: 4:00am EDT

Fri, 8 July 2016

#91: While a rich man digs for gold, a poor man is concerned with the cost of a shovel.

Learn how to think like a wealthy person, and make it actionable.

Learn what Keith did during his typical week. Doing this yourself will build your wealth.

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities.

Listen to this week’s show and learn:

02:50 Most financial advice is flawed and limiting.

04:14 Are you living your dreams or living your fears?

06:50 Delayed gratification.

09:00 401(k)-type contributions crush your current lifestyle. So what’s the answer?

12:38 Why would anyone contribute to a 401(k)?

15:13 Here’s exactly what Keith did this week himself that can build your wealth.

18:17 Actionable step on how to increase your property’s cash flow. (Loss runs.)

24:54 Keith applied for a 100% loan-to-value HELOC on his own home. He wants every last penny of equity pulled out of his home. Here’s why.

30:42 Refusing a REIT advertisement.

31:57 A smart GRE listener has these two great questions for Keith: reserves, cutting expenses, living below your means.

38:35 A new way to think about real estate problems.

40:04 Looking for turnkey income property? Do this.

Resources Mentioned:

90: Harry Dent | This Bubble Is About To Burst

Direct download: GREepisode91.mp3
Category:general -- posted at: 4:00am EDT

Fri, 1 July 2016

#90: Harry Dent is our guest today. His fantastic predictions - like the Dow Jones cratering to 6,000 by early next year - get noticed because the depth of his research is so extensive.

Harry authored the popular book “The Demographic Cliff.”

Learn what Harry thinks about demographics, markets, and cash-flowing real estate in the turmoil ahead.

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities.

Listen to this week’s show and learn:

04:11 Why it is more difficult than ever to make economic predictions today.

06:06 Stock markets are overvalued and due for a fall.

07:40 Demographics are powerful in making predictions.

08:03 Money printing.

09:50 Dow Jones Industrial Average to 6,000 by early next year?

11:45 Renting property for positive cash flow.

13:27 Vacancy rates - U.S., China.

14:33 Real estate bubble? What do you do?

16:08 Predictions: Real Estate vs. Stocks.

17:30 Demographics’ historic influence on real estate.

20:58 The two reasons for buying real estate today.

24:00 More people are renting homes rather than buying homes.

29:34 How bad will the economic crash get?

33:25 Don’t keep money in the bank or gold, but in this surprising place!

37:43 Gold to $700 an ounce in the next few years? $400?

39:28 The Demographic Cliff.

42:30 Can technology save us from an economic crash?

Resources Mentioned:

HarryDent.com

89: Most Landlord-Friendly State in U.S? Little Rock, Arkansas Market Profile

Direct download: GREepisode90.mp3
Category:general -- posted at: 4:00am EDT

Fri, 24 June 2016

#89: Little Rock, Arkansas is the capital of what some have called “The Most Landlord-Friendly State in the U.S.”

Brian Teeter and Jeremy Veldman from LittleRockTurnkey.com tell us about the market drivers, management, and properties.

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities.

Listen to this week’s show and learn:

03:48 Keith made a field trip to investigate the Little Rock, AR income property market.

09:14 Market drivers - medical, finance, capital city, population growth, low cost of living, short commutes. High economic diversity.

13:47 Kiplinger’s recently rated Little Rock as the #1 Place To Live.

15:05 Employment, job growth, population growth.

16:32 Is Arkansas the most landlord-friendly state in the U.S.? 21-day eviction.

17:53 Provider’s buying criteria: neighborhood, desirable amenities, safety, property age.

21:04 Better areas, better finishes, better tenants = better investments.

21:52 Price point often $85K - $100K. Rent-to-value ratio.

23:33 Appreciation rate.

26:18 Character of renters.

30:16 Management structure.

31:45 Tenant qualification.

34:12 Extent of turnkey renovations: often new roof, HVAC and water heater. HW floor, LVP, vanities, bathrooms, etc.

40:03 Warranties. Not many Section 8 tenants in their portfolio.

43:52 Little Rock Turnkey offers tours.

44:33 LittleRockTurnkey.com | (501) 951-7100 | brian@littlerockturnkey.com

Resources Mentioned:

Little Rock Turnkey

Mid South Home Buyers

88: How To Predict Real Estate Prices featuring David Campbell

Direct download: GREepisode89.mp3
Category:general -- posted at: 4:00am EDT

Fri, 17 June 2016

#88: Learn how to predict real estate prices by looking at the direction of supply & demand, available land, migration patterns, financing and more. Fascinating!

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities.

Listen to this week’s show and learn:

02:26 Why Keith is happy that he sold all his stocks two years ago - even though they’re 8% higher now.

05:47 The FIVE ways that real estate pays you simultaneously.

10:06 Most RE investors “get rich in a niche.” David is a generalist.

11:48 Many cash flow RE investors actually get more profit from appreciation.

14:40 Price vs. Value.

16:43 Land.

20:35 Supply, Demand, and Capacity To Pay.

27:15 Market cycles.

35:15 The “U-Haul Factor.”

36:35 Financing’s role in predicting RE prices.

45:02 Inflation vs. Deflation.

Resources Mentioned:

Hassle-Free Cashflow Investing

Mid South Home Buyers

87: Increase Your Cash Flow Creatively with Kira Golden

Direct download: GREepisode88_1.mp3
Category:general -- posted at: 4:00am EDT

Fri, 10 June 2016

#87: This clever technique can significantly boost your cash flow in your existing buy-and-hold real estate portfolio.

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities.

Listen to this week’s show and learn:

02:48 To become wealthy with real estate, you don’t need any formal education or family connections.

05:09 With turnkey real estate investing over the long-term, you get: good returns, more control, less hassle.

07:18 A question about the 1% rent-to-value ratio from a Chicago listener.

12:31 How to use “lifestyle” real estate to help your “long-term buy-and-hold” real estate.

14:00 How to market this clever technique.

16:09 Benefits: better tenants, better occupancy, timely rent payments.

18:36 Vacation rentals in the U.S. vs. outside the U.S.

22:00 Management and maintenance structure of vacation rentals.

26:28 This technique can make your vacation rentals more successful too.

30:55 Foreign property ownership structure.

33:10 Interpreting foreign property contracts.

34:35 Governments cracking down on weekly rentals.

35:43 Your vacation rentals should be bought so that they would cash-flow as long-term buy-and-holds.

36:33 Diversification.

38:47 Do this yourself, or Kira Golden can help you get started: DirectSourceWealth.com/Portfolio

Resources Mentioned:

Direct Source Wealth

Mid South Home Buyers

86: Ken McElroy | Recent Deal Flow, How Banks Work, Demographics, and KenFlix

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Direct download: GREepisode87.mp3
Category:general -- posted at: 4:00am EDT

Fri, 3 June 2016

#86: Ken McElroy is our guest today. He’s the Rich Dad Advisor for real estate, controls more than 10,000 residential units, and is one of the best-known and most successful real estate investors in the United States.

He reveals where he finds his deals today! Learn about how you can profit by acting just like the bank does.

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities.

Listen to this week’s show and learn:

02:35 Keith brings you today’s show from Alyeska Resort in Girdwood, Alaska.

05:50 When real estate prices rise, cap rates fall.

7:58 Can’t beat the bank? Then BE the bank. Here’s how.

14:16 Why are (uninformed) people still saving money?

18:50 Here’s where Ken McElroy is finding his deals today. Primary, secondary, tertiary markets.

24:15 When oil prices fall, how soon does it hurt a real estate market?

28:17 Why Ken avoids buying in the U.S. Northeast, Southeast, and upper Midwest.

34:02 Demographics.

36:42 Self-storage units, mobile home parks, luxury real estate, resorts, office, retail, efficiency apartments.

40:40 So many news articles pertain to real estate somehow.

41:36 KENFlix - Ken’s instructional video series.

45:10 Say you’ve been given $10 million. Here’s how to deal with it.

Resources Mentioned:

Ken McElroy’s company

KenFlix

85: Today’s Income Property Loans with Graham Parham

Keith Weinhold:	Hey, welcome to GRE. This is Get Rich Education episode 86. I’m your host, Keith Weinhold. Here’s hoping that you’ve lived an abundant week. I’m back to help you build wealth for yourself. What we’re talking about is very realistic, extra income and life-changing income for the average Joe here and you won’t end up as an average Joe. You will be able to do what most people can’t because you did what most people wouldn’t.
	Today, we’re talking to one of the best known real estate investors in the nation that is Rich Dad advisor, Ken McElroy. Ken’s contributed to our real estate investing education industry with countless real estate investing books both inside and outside the Rich Dad series and at last check, he controlled more than 10,000 real estate units.
	I recorded Ken and I’s chat the other day when I was in Anchorage. Today, I’m bringing you this show from the Alyeska Prince Hotel at the fantastic Alyeska Resort here in the rain-forested, ski community of Girdwood, Alaska. Although summer is in full swing now, this is the premier ski resort in the entire state of Alaska in the winter time. In this time of year, we’re enjoying the spa-like amenities, the really luxurious accommodations and there’s an aerial tram that will ride up the mountain later today.
	Really a fantastic scene here at this resort nestled in the Chugach mountains. Now, if you look down lower, you can see tidewater. You can see sea level here and if you look up higher, you can see at least five hanging glaciers from this vantage point. You have the paradox of seeing blue Alaska glaciers but because you’re near sea water, you can also see seagulls.
	Interestingly here in Girdwood, this adjacent forest is recognized as the northernmost rainforest on earth and its climate is distinctly different from that of my home in Anchorage which is just about 40 miles north of here. I think you’ll like this Ken McElroy interview today. If you’ve ever been around Kenny, he’s very easy to talk to and by the end of this thing, we’re just chatting as I’m throwing questions and ideas out there. He joins me from the Phoenix area today, Scottsdale, Arizona and this is his second Get Rich Education appearance, so here we go.
	From the early days of managing properties for others, to being a well-known investing guru and successful entrepreneur, Ken McElroy has considerable experience in property management as well as real estate investing in both Phoenix Arizona and across the United States with 26 plus years of elite level experience under his belt.
	He has offered his fans multiple real estate investing books and is a longstanding Rich Dad advisor to the author of the Rich Dad, Poor Dad series, Robert Kiyosaki. Ken’s true passion to educate others has led him to speak internationally on real estate investing, entrepreneurship and the keys to financial freedom. Welcome back to Get Rich Education for your first appearance since you were here on episode 25, Rich Dad advisor, Ken McElroy.
Ken McElroy:	Hi, Keith. Thank you. Great to be on your show again.
Keith Weinhold:	Hey, it's good to have you back. It was good to see you [inaudible 00:04:57] a few months ago as well. How are things going there? When you think about Ken McElroy, I think about the MC Companies deals that you syndicate. You know what, five years ago, I was thinking, Ken is probably looking at so many deals with prices being run down. He must be going nuts with all these deals and today what do you do? The cap rates have run down so much. I mean, what are you doing if you’re not looking for deals or if you still are where are you looking?
Ken McElroy:	We’re definitely looking. We have a full acquisition team out meeting with brokers and flying around looking at markets. It’s harder. That’s for sure. It actually got harder. The reason cap rates are down is when interest rates started going down. Of course lower interest rates lower cost of debt, more cash flow. The prices started going up and we’ve been battling this for a few years. It’s not something that just came about.
Keith Weinhold:	Now first of all, that’s a paradigm to some people. When a market heats up, sometimes people think, “Oh, well then cap rates must be heating up and going up,” but that's actually just the opposite. Sometimes people need to wrap their mind around that since the cap rate is the net operating income divided by the value of a building when that net operating income stays about the same and the building value shoots up faster that lowers one’s capitalization rates.
	Cap rates actually get driven down. I guess my thing is since arbitrage really is the cap rate minus a mortgage interest rate, even if cap rates have been driven down say to six-and-a-half on a building and you can still get a mortgage interest rate at five-and-a-half, that's 1% arbitrage. I mean, wouldn’t you still do the deal then? Of course there’s going to be a lot of “it depends” factors but even if cap rates have been driven down to a point where they’re still higher than mortgage interest rates, do you still go ahead? Do you still look?
Ken McElroy:	That’s a really good question. We look at things a little bit differently. I don’t always use the cap rate as a determining factor of whether we buy something. I’ll give you an example. I think cap rates are definitely something you need to watch. If you’re trying to buy a property that is in really good condition and full, and has a stable operating history, then I think cap rate means something, but if you’re buying something that, let’s say has a value add component to it and or maybe some occupancy issues, your cap rate is not going to look good because you’re going to buy it based on the way the property is performing and the way the rents are currently not necessarily on the future.
	We do look at cap rate, but mostly we look at cash flow. We start with cash flow and if we can find something that is cash flowing in the first few months of buying it and we can improve it, then of course we’ve got what would be a true value add.
Keith Weinhold:	I think what we’re basically doing here as a real estate investor where you have a cap rate that exceeds an interest rate, kind of what you’re trying to do is be the bank effectively or do what the bank does by borrowing a lower rate and investing at a higher rate. I saw you write a Rich Dad Advisors article recently about how banks work and how we can exploit that as real estate investors. Tell us a little bit about how banks work and how that plays into what a real estate investor does in being the bank.
Ken McElroy:	Sure. This also ties with your last question about arbitrage. For example, we’re in the process of buying a property right now in Mesa, Arizona and the rate that we‘re projecting, the fixed interest rate is going to be under 4%. This is a quote we actually already have. Rates should be under four fixed and we’ll have three years of interest only as part of the loan.
	You think of the banks, the reason why the interest rates are so low right now is because there’s a lot of people saving money. The article that I wrote for Rich Dad was … What happens is money like anything is there’s a supply and a demand on money. If there’s a lot of money in banks then the only way banks make money is to lend it.
	That’s why they’re trying to get everybody in credit card debt. That’s why you see all these credit cards. That’s why they’re doing it with student debt. They’re doing it with all kinds of things. They’re not doing it right now with the refi. The investor loans and all the cash out refis that they were doing before the subprime crashed, but there’s a tremendous pressure on banks to get money out because that is the way that they make money speaking of arbitrage. If let’s say somebody has $10,000 in the bank and they’re making 1% which I think today would be generous.
Keith Weinhold:	We’re just talking about your everyday depositor.
Ken McElroy:	Everyday depositor, right. That’s an expense to the bank.
Keith Weinhold:	Right. Now, that’s a paradigm for some people. When you put 10,000 in the bank, that is an expense to the bank at that point.
Ken McElroy:	Correct. Right and that’s what I wrote in that article because if you think about it, it’s true, right? I mean if you give the bank money, you’re going to want interest on it so that’s an expense to the bank. Less than 1% is not necessarily very good. Now, the bank has your money and their job is to let it out at say 4 or 5, 6%. That’s how banks make money. That’s not the only way banks make money but that is a big way that banks make money.
Keith Weinhold:	An everyday savings depositor might go ahead and deposit their money in the bank and the bank has an obligation at that point to go ahead and pay that depositor 1% and then what the bank is doing is they’re turning around and they’re loaning it to you like the deal that you just described in Mesa, Arizona for 4%.The bank’s arbitrage in that case is 4-1 or 3% and then what you’re doing with the 4% at that point, tell us about that and how that arbitrage works for you?
Ken McElroy:	That’s exactly how it works. Exactly. I’m glad you’re walking it down this way. Then I borrow the money at four, let’s say, I put it into, in this particular case, it’s a $35 million apartment deal. Actually the deal is 35 million and we’re actually borrowing 28. Now, I’m borrowing 28 million at 4%. Now, I get into the nuts and bolts of how the deal is itself.
	The deal of course pays for the mortgage but in addition to that, it generates about 7% cash on cash return on the actual investment. People call it loans, but I call it OPM, other people’s money because that's what it is. People I think sometimes get confused about money. It’s really very simple. If I borrow something from you, you can actually give it to me in a form of equity or you can give it to me in a form of a loan.
	It's the same with the bank. The difference is the bank is using your money. You can give it to somebody directly or you can give it to the bank and then of course they’re dishing it out in the form of equity and debt because banks actually do equities too in some cases, a lot of banks. It’s the same thing with a life insurance policy or a 401k or even a pension.
	Let’s say you’re a union worker and you pay it to a pension or a teacher or a fireman or a policeman or something like that. That money that you’re putting away gets invested. Unfortunately you’re giving away all your power and not knowing what it’s invested in, but regardless, let’s say over a period of a long time, you’re putting money into a pension or even a life insurance policy for that matter.
	The reason why when you get your statements and you see return on that money, it's because it’s invested in something. It’s not just put into the bank. They’re actually physically investing it. Believe it or not, pensions, life insurance companies and banks are all trying to invest in similar things.
Keith Weinhold:	Right. They’re opportunist like we want to be opportunist in a sense when a depositor goes ahead and puts her $10,000 in the bank, that’s the bank’s problem so the bank has a problem and they’re encumbered with those interest payments and they need to flip that around and go ahead and find an investment opportunity to solve that problem.
Ken McElroy:	That’s exactly right. That’s why as you watch, it’s very interesting to watch how banks compete for deposits. They want deposits. They give away free checking and they give away free toasters or whatever they might do and the people are like, “Oh my god. This is great. I get free checking.” What they’re really trying to do is get you to open bank accounts so that they can actually use that money to lend it.
Keith Weinhold:	Really, the genesis of that process is one individual saver and first of all you said there are more people saving these days. Why are they saving more these days?
Ken McElroy:	I don’t think that they’ve completely understand the system.
Keith Weinhold:	They definitely don’t if they’re saving.
Ken McElroy:	Correct. That's one reason. Also I believe that there’s still some hang over from the recession. I live in Phoenix and home prizes are still the inventory and everything that went back to the banks and everything. We’re still starting to see home prizes relatively flat even though they’ve increased a little bit. I think a lot of people got freaked out during the subprime crash. They lost jobs, they lost all the equity in their houses and I think this time around, they’re having a little bit more of a cushion which is probably smart.
Keith Weinhold:	If more people are saving these days, in a sense, that creates more of a problem for the bank if you will because they need to go ahead and get that money reinvested and when more banks have more problems, that's when banks begin to compete for each other and that’s probably why you’re able to get terms like 4% fixed on the Mesa, Arizona apartment building and three years interest only. In the genesis of that, begins with there being more demand for savers.
Ken McElroy:	That’s exactly right. That’s exactly what I would have said. Again, if you can look at it like if there’s a … Let’s say you live in a town where there’s a lot of excess development for houses, the supply of houses are going to keep the prices down and they’ll start to do concessions as they try to move through that. It’s the same with money. People just don’t think of it that way. When there’s a lot of money looking for a home, then the price of money goes down and that's what we’re seeing right now. There’s a tremendous amount of money looking for a home which is why interest rates are low.
Keith Weinhold:	That tells me that I have a problem too. I need to convert more people to Get Rich Education listeners because if there are a lot of savers, none of them are Get Rich Education listeners. I can tell you that. Ken and I are going to come after the break. I’m going to ask him a few more questions about now that cap rates have been run down, where does it go for deals? Does it go into a secondary market? Does it go into a tertiary market and more? You’re listening to Get Rich Education. Our guest is Rich Dad advisor, Ken McElroy. More when we come back. I’m your host, Keith Weinhold.
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Robert Kiyosaki:	This is our Rich Dad, Poor Dad author Robert Kiyosaki. Listen to Get Rich Education with Keith Weinhold. Don’t quit your daydream.
Keith Weinhold:	Welcome back to Get Rich Education with our featured guest, Rich Dad advisor, Ken McElroy. Ken, this is a really interesting time here while prices of real estate have heated up and cap rates have been run dow. You are one of the biggest syndicators on the entire globe today so I want to know where in the heck are you fighting your deals today in this market? How are you doing?
Ken McElroy:	They’re hard to find. I will tell you that. We like to focus on … I’ve talked to you before about this. I’ve written quite a bit about it. We don’t like to be a pioneer in any town so we basically can’t invest right now in the primary markets so that’s important to know. The primary markets would be Seattle, San Francisco, LA, New York, Boston, Chicago, those kinds of markets because what I call the dumb money is coming and do it which Wall Street because that’s really other people’s money again like we talked about in the first segment and it’s just being invested by a bunch of people, placing it.
	What we’ve had to do is go into second and third tier markets. The third tier markets can be risky however if they’re based too heavily on let’s say one employer or just a few or it could be like a great example would be North Dakota. Everybody went there because of oil. That’s probably the best example. That would be considered a third tier market and I probably got asked at least once or twice a month over a period of two years to go do something up there and I never did because I’ve seen a boom and bust before like that.
	Something that is entirely based on oil prices is not necessarily a good spot to be. I think that if you’re looking at it from a what we would call a capital gain standpoint, you might time it right. I’m sure, there’s a bunch of people that made very good money up there during that time but there’s also a bunch of people that lost a bunch just recently.
	It could be the exact same thing around a military base or something like that. We’ve had properties in and around military basis and as they deploy, let’s say personnel out into other areas, it reduces the population [inaudible 00:20:52] and things like that. Those third tier markets can be tough and so you just got to be very careful about those. We prefer the second tier although there’s a lot of money moving into second tier right now.
	The second tier market believe it or not is something like let’s say Tucson or even Las Vegas. Las Vegas however is also based heavily on tourism so when the economy is doing well, Las Vegas is doing well. Not necessarily the best market because it’s not as diverse as you would want. It is well over a million-and-a-half people now. Again, it’s only based on people flying into town and staying at the casinos and going out and spending a thousand dollars a day on bottles of wine and all that.
	I think you just got to be careful of those but there are definitely ways to make money in those markets. What we like to do is try to take a look at where employers are going and try to be ahead of that a little bit. The other thing that can really throw a market off is construction. Some of these small markets like Austin, Texas which is really a second tier market is I think it has 16,000 apartments under construction right now.
	It’s heading into some real tough few years ahead of it. Whereas Phoenix, I think has eight and Phoenix is much bigger. You got to look at supply at the same time but as we start to look at these markets, we like Austin, believe it or not and some areas we like San Antonio, we like Tucson. We like of course Phoenix which is where I’m based and we like Tulsa, Oklahoma, some of those markets. Salt Lake City. We’re looking at all those.
Keith Weinhold:	We’re talking about different marketers here and I’m saying this mostly for the benefit of listener primary, secondary or tertiary which is third tier. We’re generally talking about the population, the metro size of an urban agglomeration and typically when you have greater size, you do have more market industry and sector diversification so just a general, just a general correlation, bigger size, you’re more likely to be hedged against economic downturn but there are shorter term things going on as well and it sounds like in Austin, perhaps demand could be lagging behind supply little bit since there’s an awful lot of new construction coming on board. You can’t just look at the size of a metro area and know how safe you are just simply based on the size of it.
Ken McElroy:	Right. I think if you take a look at … The nice thing about real estate is that there’s quite a lag with it. As occupancy rates tick up or rent growth ticks up, you can almost bet that there’s going to be development to throw it off at some point. Banks like to lend in strong markets so if the occupancy and the rent has year over year growth then people are going to be buying land and building. At some point however, there’s too much being built and then the numbers change again.
Keith Weinhold:	With this lag effect in real estate, I want to get a number from you in approximate period of time in which when one sees oil prices fall so dramatically like they have and they really just begin their decline about two years ago, when that really catches up with the market of course there’s plenty of “it depends” factors but for me I live in Anchorage, Alaska. That’s where I am today. I have local rentals and I still have great occupancy.
	I have not gotten rent increase in the past two years but I still have fantastic occupancy which is really the important thing. I’ve held on for about two years. What do you think that period of time is where you can see a precipitous decline in the price of barrel of oil to when that really catches up with you and you really have significant effects in vacancies in a market?
Ken McElroy:	We’re seeing it. I can just speak from real experience. We have property in Houston, Texas and it shows up at the moment people lose jobs. If there are jobs that are lost, the people typically move and/or look for other jobs which means sometimes they’re moving. Not necessarily always but whenever you start to see that, it shows up immediately. As oil went down, we definitely saw it within just a few months in Corpus Christi, in the Houston area and then of course it spills over into Dallas, and Fort Worth, and San Antonio and some of the other markets.
	On the supply side however, if you’re looking at that, it can take a year-and-a-half, two years before it starts to show up because you have to buy the land, you have to go get the loan. It takes a year to build it. It’s not even ready to be moved into. That’s why I’m saying on the supply side it doesn’t show up as quickly which is nice.
	If you already own something then you can really, really, really be careful and watch that supply side. For example, where we actually listed a property in Austin, two weeks ago, and five years, it’s being listed for 10 million more than we bought it for. That’s entirely based on the demand of the market.
Keith Weinhold:	Congrats.
Ken McElroy:	We’ll have to close it but we’ll see where it goes.
Keith Weinhold:	We’re getting a little idea of your deal flow here. Where do you find your deals as far as not geographically but conduit wise? I mean do you have someone to go through LoopNet? I’m sure you’ve got a lot of great relationships with brokers. I mean does some of your deals still come from a resource like LoopNet or are they all pocket listings at this point?
Ken McElroy:	Great question. We look at all of those things. We’re tied in to everything. We like to work with brokers. Here’s typically my experience. A lot of times what happens with the LoopNet stuff is the seller has typically been a little bit unrealistic and maybe they even listed it before. Sometimes you find deals with just top sellers.
	I think that we like to work with brokers because that means that the seller has agreed to some kind of value and the broker is putting it out on the market at that kind of value. Nothing wrong with working with sellers directly but my experience is that they’re typically a little bit unrealistic on what they want and you’re not always getting the great deals that you would think by going to a seller directly.
	The best deals that we’ve ever gotten were when we bought from banks because what happens when a bank takes back a piece of real estate, it’s actually toxic for them to have that on their books. It affects their ability to lend. I can’t remember exactly what it’s called but I know when we buy it, it’s from the REO department, that real estate owned department of the bank and if the bank has too many assets in that category, then they get penalized on being able to put money out. They’re typically losses on a loan and selling it back out to somebody. The best deals that we’ve ever gotten were buying directly from banks.
Keith Weinhold:	Good to know. I had another question pop in my head. We were just talking about geography a little bit earlier there. We’re talking about buying in primary, secondary or tertiary markets. I know that you an MC Companies which is a large company and you do have hundreds of employees at MC companies, right?
Ken McElroy:	Yes, 350.
Keith Weinhold:	350?
Ken McElroy:	Yeah.
Keith Weinhold:	That’s a lot of a central place for not just buying power but for knowledge and everything else. I want to know why would MC Companies maybe go to a secondary market in the geography where you continue to hang out which is mostly the southwestern United States in the south. Why not try a primary market? For example, I know that there are markets with sweet spots in places like Philadelphia, in Milwaukee. Why not go in a primary market because we do have more and more people moving to cities between censuses and society has urbanized a little bit more. Why not try those out or have you and I just haven’t heard about it?
Ken McElroy:	Another very good question. First of all, just being selfish, I don’t really want to be on a plane that much and so my deal with my family was two hours on a plane. That basically gets me to the western half of the US and the truth is there’s deals everywhere. There’s deals to be had everywhere.
	From where we are in Phoenix, I can be in Salt Lake in just little over an hour, all over LA or all over California, an hour to two hours. Same with Washington and Oregon, Idaho, Montana. We’re looking at all of those markets and then of course Texas is just two hours as well. That’s primarily the reason. There’s just a lot to do. There’s a lot of markets and a lot … There’s plenty of inventory but maybe someday we’ll look a little more east.
Keith Weinhold:	I think that’s really an appropriate answer and it just tells the listeners that, you don’t need the entire country. We’re a big country and there’s a lot of deals. There’s even a lot of deals in the town that you live in. It always doesn’t have to be buying the whole real estate investing either. I know a bit about Ken. I know he’s quite a family guy. He’s really involved with his children and every summer you have essentially a retreat with your children where you take a lot of the summer months off.
Ken McElroy:	I do. I take the whole summer off, actually. They get out of school in 10 days and I move. I don’t work all of June and all of July. Then one last thing I wanted to say on that last piece that I think is important because I get, I don't know, hundreds of deals a week to my email just like probably a lot of people. After a while as you start to show up on lists and you don’t even know how, but you’re on people’s lists and in the beginning you’re trying to get on everybody’s lists and now you’re trying to get off everybody’s lists.
Keith Weinhold:	Right.
Ken McElroy:	The point is I get deals from Philadelphia, I get deals from Wisconsin. I probably get five or six deals a week from Florida. I just delete them. This has a lot to do with focus and I think that … I’m trying to be as efficient as I can. We totally understand most of the big Texas markets. We completely understand Oklahoma. We completely understand Arizona.
	Not that we just focus on those markets, but those are deals that I can look in less than 10 minutes and know whether or not I want to pursue to the next thing. We even focused on those deals. We looked at 600 deals last year and we made 58 offers and we got into about 28 best in finals. I think it was 28 or somewhere around 30 best in finals and we only have one.
	That’s just in the western areas that we’re looking at. You can go crazy looking all over the place and the biggest issue I think people have is when they buy something. Let’s say they live in Phoenix and they buy something in Florida, is not having what I call boots on the ground, not having people there that can help you if something goes sideways or even people there that they can trust.
	The intangible are the relationships that we have in those markets with the brokers and the property managers. I can look at something in Dallas on paper and call up some people that I know there and have a rent survey done within 24 hours, whereas in Florida, I get a call. Somebody I don't know. There’s tremendous amount of risk closure, I guess. It’s by just having some of those relationships.
Keith Weinhold:	When you’ve narrowed your focus, you’re just more, I guess, preview to and in tuned with the type of information. We talked about brokers in your relationships but also that type of information where you might learn that at large hospital campus is going to be breaking ground in a certain section of San Antonio and you know that’s going to be good for sustainable demand for renters that can pay incomes for many years so therefore that may increase the chances that you would want to buy a 500 unit complex in northeast of San Antonio or something like that for example?
Ken McElroy:	That’s exactly right. Versus at the same time in the hour, I met get a deal from Florida and it might look beautiful on the brochure and it’s on a lake in Orlando let’s say. I just don’t have the relationships there and of course there’s markets nuances too on one side. I was looking at a deal today in Austin whereas literally the interstate 35 on one side of the street has different rates than the other. Literally on one side of the interstate versus the other. Those little things can show up in every market. You have to know that information before you go in blindly.
Keith Weinhold:	As you’re analyzing markets, are there really, I guess any more broad demographic trends that you see coming in the near term future. You can want to skate to where the hockey puck is going. You want to FOCUS, F-O-C-U-S, Follow One Course Until Successful. What about demographic trends whether that’s people moving to low tech, states or people moving in the central business districts and downtowns? How does that influence what you buy? What are you looking at? What are you looking for? Where are we going to go?
Ken McElroy:	It influences a lot. I mean that’s the other part that I think it’s very fun because what happens a lot of times is people chase real estate because of the price. It’s way down the list for me at least. If you just look at, for example, I know we’ve talked before about seniors, there’s a huge number of seniors that are moving to their primary homes and moving in to rentals.
	They want to have a little bit different lifestyle without that anchor on their home. You can track where they’re all going. Most of them are active. That’s one demographic. Another demographic is the millennials which are coming out of school right now perhaps or even maybe they already have or maybe they haven’t at all and they’re living at their home with their parents. That’s a huge number.
	I’ve read it could as much as 25 million people living at home right now that are under the age of 25. That’s a renter demographic. You start to see these trends show up and really what generates, I think everything is jobs. Which markets are progressive and which ones aren’t. You start to look at cities, even counties that are shrinking and a lot of that has to do with tax and a lot of that has to do with jobs like … Obviously the one that gets used a lot is Detroit.
	Detroit after the cars, manufacturing got outsourced or anything that’s based manufacturing is generally shrinking. Although that I think it’s starting to make some moves back the other way, now you’re starting to see all the tech popup, right? Austin is tech. Silicon Valley of course is all tech but there’s also little other areas that are all competing for tech right now and so those are all good things to watch. Once you figured that out, then the real estate, then you realize that there’s demand in a market, that’s how you invest. You don’t do the other way around and hope.
Keith Weinhold:	You don’t hope and you typically don’t start with a property either. You usually finish up with the property when you’re looking at invest it rather at analyzing a real estate market.
Ken McElroy:	Right. Hope is not a good strategy.
Keith Weinhold:	Never has been, never will be. We’re talking about demographic trends and where people are moving to and people need jobs and jobs produce incomes and that’s largely a residential base phenomenon we’re talking about there. Do you see any, I guess sectors within real estate that are good to exploit in the next five to 10 years other than residential whether that’s self-storage or mobile home parks or a luxury real estate or resort real estate or efficiency apartments for millennials? What’s a good place to focus on there to profit?
Ken McElroy:	The answer is yes on all those things. I’m actually in the process of looking at self-storages. We’re actually building one. We have some in Escrow. I’ve looked at mobile home parks. We have a lot of land. I’ve done condos. We’ve done single family. Primarily we’re known as apartment guys. I just bought an office building about six months ago in Scottsdale.
	I’m looking at all kinds of things I guess is the point. Again. I don’t think you should be all in, in one sector but I think you should understand it. They all have different kinds of … They're all different. As an example, if you think about it, office buildings are in trouble right now because online retailing, online retail. Retailers are in trouble. If you look, there’s an article that came out in the national real estate investor magazine that talked about some very big stores are going out of business right now.
	In Scottsdale here which is growing incredibly. We had Barneys go out of business in the last month which is at our big Scottsdale fashion mall and Barneys is a big national retailer. You start to look at these companies that are struggling with online retail. I don't know about you but my wife, we have more Amazon boxes showing up at our house from Nordstrom and all kinds of stuff. That’s how she shops now.
	I think it’s common sense. If you start to look at those kinds of things, then you start to realize maybe I shouldn’t go into retail or malls. Malls are in trouble right now and office buildings are also potentially in trouble for that reason but not all office building. I bought an office building in Scottsdale and the sizes are 1,500 to 2,500 square feet and there’s like 20 tenants.
	Their insurance agents, their CPAs, their lawyers and things like that that aren’t going to be affected at that level. People painting a broad brush and they say, “Oh, office buildings are bad or retail is bad or self-storage is bad,” but it’s not. You just have to look at where it is and is there an under demand or an over demand. I bought land five, six, years ago and everybody thought we were crazy but now that land has doubled in price.
	We have the option now to sell it or build on it, both are good options and I’m not sure which we’re going to do. You just got to watch. When everybody is running to the hills, prices are going down, that’s when you want to start to take a look at those things but even then, it’s not necessarily always a good price and a good deal. You just got to be careful.
Keith Weinhold:	Yeah, that’s right. Just like the answer is to most real estate questions. It depends. The answer to most real estate questions is more than one sentence long.
Ken McElroy:	People really get frustrated with that answer and I get it. They want the answer. They want to know my situation is different. They all think that their situation is different. They want the quick answer. It can’t be that way. Just even in your community, in anchorage, you guys have gone through ups and downs in your own community for tourism and fishing and all that kind of stuff, and oil. I think as things happen in different communities around the country, you just got to pay attention to it and try to be in front of it.
Keith Weinhold:	That’s actually interesting when you’re a real estate investor, it just seems like at least one third of the USA Today articles you read, you can tie in to what you can do and what you can invest in yourself. That might be insider information in stocks but you can use every bit of that as a real estate investor.
Ken McElroy:	I think that is a great, great analogy. I actually did a seminar once where we opened up a newspaper in front of the room and we went through it. We said, this is how this article affects real estate. This is how this article affects real estate. This is how this article affects real estate whether it was a downsizing of an employer or an upsizing of an employer or a merger or in interest rates or bank closures or property openings or whatever. I’m telling you, you can open any business journal or any newspaper and most of the articles in there will have some kind of an influence on real estate.
Keith Weinhold:	I believe every bit of that could be true. Ken, by this point, you’ve really amassed so many books that have sold well. I mean you’ve really been one of the more I think prolific contributors to real estate investing education and financial education today. One of the ways you contributed is something I’m very familiar with because I’ve been a long time subscriber myself and that is your video series, Kenflix. Tell us about Kenflix.
Ken McElroy:	Thank you by the way. What happened is the books for me where not planned. Robert became one of my investors, Robert Kiyosaki and then he asked me to write some books on what I do. We donated all our money to charity for all our books. All the book sales all go to our nonprofit and then get distributed out to cystic fibrosis and autism and I think we have 25 charities that we support.
	What was happening when the books came out, the emails and you can imagine we’re just pouring in. They’re all good people, really good people asking very good questions. There is just no way I could keep up on it. I mean literally my system will put them into a file and the problem was I would email somebody back. I tried to work this into my work and I just couldn’t.
	I would email somebody back and then they have to two or three more questions back which is totally fine. I get it. What I started to do was just take all those questions and the do videos because it’s a lot easier. Also I found that a lot of questions were similar. Not all of them but a lot of them were very similar. The whole idea behind Kenflix was to … It still is. It’s entirely the questions and the videos that I have on there is information that I get from people asking questions. It’s not really something that I thought about it, it’s actually entirely driven by the questions that people have.
Keith Weinhold:	It’s nice. I don't know if they're giving you all the content but they’re giving you leads about the content that they want to hear about back. You’re ahead of me. I continue to get more and more questions mostly through email with Get Rich Education and I know I sure cannot respond to all of them and I feel a little bit bad sometimes but your videos are really well done.
	I got to admit, sometimes I watch those videos, a lot of times you have a big easel and a big pad of paper or you’re demonstrating things. I get a couple of ideas from my show. I’m like, “Oh, I haven’t talked about that on my show yet and I really like the way Ken described that visually in the video so Kenflix is totally worth checking out.
Ken McElroy:	Thanks a lot. It’s been a lot fun. The other part that’s been great for me is for my time, we get all the emails from all the people and then we go through them and I’ll go into the studio for three or four hours and I’ll knock out maybe 15 of them. It’s just really nice to be able to accommodate what people want. Direct everybody in one location and also just to help.
Keith Weinhold:	Kenflix, that’s K-E-N-F-L-I-X.com or you can check out ken’s video series. That’s great. Ken, how can our listeners find out more about you?
Ken McElroy:	Either Kenfllix, K-E-N-F-L-I-X or KenMcElroy.com K-E-N M-C-E-L-R-O-Y or our company website is MC Companies, that's M-C-C-OM-P-A-N-I-E-S.com. We’re pretty efficient on getting back to people and happy to answer any questions we can.
Keith Weinhold:	Ken McElroy. Thanks for coming back on to Get Rich Education.
Ken McElroy:	Thank you, Keith. Great chatting again.
Keith Weinhold:	One of the more fun chats with Kenny there. Now, you understood this from earlier right. Now, let’s just say that you’re given $10 million. That’s your liability. You’ve just been given a job. Dealing with that $10 million is your problem. That doesn’t exactly feel like a problem to you. Say that you are the bank and you need to pay a depositor 1% interest on that $10 million, your problem is that now you’ve got to make $100,000 a year in interest payments on that. Therefore, you must, you absolutely must find an investment that pays more than 1% per year because you can’t dip into the $10 million principle.
	As a bank, what you do is you go ahead and make a 4% interest rate loan to someone like a real estate investor like me to solve your problem. Now, your profit is the 4% interest rate loan that you made to me minus the 1% that you’re paying your depositor and the spread, that 3%, that's your arbitrage.
	Annually, you're profiting 3% on that $10 million deposit. Now, you transfer the problem to me is what you’ve done because now, I need to pay the 4% interest rate over to you. What I do to solve my problem, I do what you, the bank just did. What I do is I go buy an apartment building with the $10 million that I got from you. That apartment building yields an 8% cap rate, we’ll just say, so 8% minus the 4% interest rate and now I have a 4% arbitrage myself so I beat the banks by doing exactly what banks do.
	I borrow at a bank for a lower rate and invest it at a higher rate which I will do all day and you know, I’ve got to credit GRE listeners for doing the same thing. You, yes you are acting by purchasing cash flowing turnkey real estate. Turnkey means that you’re buying the property already tenanted, already renovated, already under management and typically warranted for you too. These properties should provide you with passive income from day one.
	GRE listeners have scooped up dozens of homes from that extraordinary provider, Mid South Home Buyers in Memphis, Tennessee. That’s it. midsouthhomebuyers.com and for more opportunities in markets outside Memphis GRE listeners are subscribing to our newsletter at getricheducation.com.
	You have been an action taker by purchasing properties through the webinar link that we send out in our newsletter. You’ve been buying turnkeys in Philadelphia, Chicago, Kansas City and Indianapolis. With those free newsletters, I only have a webinar link sent out every one to two months. I don’t blow up anyone’s inbox with too many newsletters, I only send out information on opportunities when I feel like I have something of real value to provide to you.
	Subscribe to that free newsletter yourself simply by visiting getricheducation.com. Special thanks to Rich Dad advisor, Ken McElroy today. Sincere thanks to you for joining me today. Next week, you’re going to meet a real estate entrepreneur and she has such a fantastic creative system for increasing her cash flow on her buy and hold real estate that I just had to bring it to you because you can use the same technique too. Until then, you might quit your day job but don’t quit your day dream.
Speaker 7:	You’ve been listening to Get Rich Education. Telling you what the wealthy won’t tell you about real estate and investing. If you enjoy the show, please take a minute to visit iTunes and leave your comments.
Speaker 8:	Nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax legal real estate financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have a potential for profit or loss. The host is operating on behalf of Get Rich Education LLC exclusively.

Direct download: GREepisode86.mp3
Category:general -- posted at: 4:00am EDT

Fri, 27 May 2016

#85: If you want more property, not less, you’ll structure your financial life to leverage more income property loans for yourself.

Graham Parham, Senior Mortgage Loan Officer with Highlands Residential Mortgage in north Texas, talks down payments, debt-to-income ratios, credit scores, reserves, the overall lending environment, Refinancing vs. a 1031 Exchange, HELOCs and more.

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities.

Listen to this week’s show and learn:

04:11 The last housing crash was primarily due to irresponsible lending practices.

05:18 We’re talking only about about 1-4 unit income property loans today, not primary residences.

06:02 The mortgage industry is preparing to loosen lending guidelines.

09:22 Reserve requirements - 100% of retirement assets count, up from 60%.

10:48 How to use the lowest down payment possible on a conventional loan.

11:39 Minimum down payments: 20% on single-family homes, 25% on 2-4 unit properties. Credit score requirements.

14:16 Debt-to-income ratio.

15:46 HELOCs - Home Equity Lines Of Credit.

18:37 Interest rates are about ½% higher for income property than primary residences.

19:30 Minimum loan amounts.

21:21 Are Interest-Only loans coming back?

24:48 With your equity buildup, should you do a Cash-Out Refinance or a 1031 Exchange?

28:00 Seasoning, gifts.

29:07 Rapid Rescore.

30:46 LLCs.

33:48 Must a husband and wife both be on a loan application?

34:57 Financing 10 to 20 properties.

36:25 FHA loans.

42:30 Back in 2006, this is how loose and easy lending guidelines were.

44:00 Keith recaps some takeaways from today.

Resources Mentioned:

Graham Parham or 855-326-6802

Texas Investor Loans

84: Robert Kiyosaki | The Rich Don’t Work For Money | Rich Dad Poor Dad Author | Rich Dad Radio Show: In-Your-Face Advice on Investing, Personal Finance, & Starting a Business

Direct download: GREepisode85.mp3
Category:general -- posted at: 4:00am EDT

Fri, 20 May 2016

#84: Robert Kiyosaki is our guest today. He tells us about his friendship with Donald Trump, why he’s buying oil, discusses the four types of intelligence, and tells us about his long-predicted Economic Crash.

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities.

Listen to this week’s show and learn:

02:24 Kiyosaki has influenced Keith’s investing thoughts more than anyone else.

04:17 A 401(k) is not a good investment. Why not? It doesn’t pay you. You pay it.

06:46 The words you use help define the life you live. Examples: “cash flow” vs. “budget” and “saving money” vs. “getting liquid.”

09:54 “Rich Dad, Poor Dad” meaning, and global reach.

19:36 What Kiyosaki learned from Donald Trump.

22:04 Four types of intelligence: IQ, EQ, PQ, SQ.

24:25 Savers are losers. Why would you save money?

25:24 Economic Crash of 2016?

27:54 Robert has lost money in business, but not in real estate.

30:05 How to invest $100,000 today.

33:38 Kiyosaki is buying oil.

36:50 Giving to others.

38:00 Good Debt vs. Bad Debt. Fiscal vs. Economic.

40:38 Studying and learning leads to winning at investing.

42:09 QE, Inflation, and Gold.

46:53 Interview recap.

48:21 Instead of saying “It Can’t Be Done,” ask “How Can It Be Done?”

51:09 Don’t live below your means, expand your means.

Resources Mentioned:

Rich Dad, Poor Dad

Rich Dad Website

The Real Estate Guys Investor Summit At Sea