Mon, 27 June 2022
“You DO care about what others think of you. That’s your reputation.” -Keith Weinhold People care about your brand when you create value for them. Next, you must reach people. A construction worker in London decided that he wasn’t where he was meant to be in life. He’s our guest, Steve D. Sims. He started asking others why they were wealthy but he wasn’t. A personal branding expert, Steve tells us why the right brand for you is the “authentic you”. When you meet someone, ask them about themselves. They are their own favorite subject. “A brand is what people say about you when you’ve left the room.” -Steve Sims Brands are either solution-based or aspirational. Every person has a brand. Donald Trump was well-branded because he had clear slogans like “Make America Great Again” and “Build A Wall”. The lesson? Be clear about who you are or what you stand for. It’s OK to know what you’re “not”. For example, I didn’t know how to hire a COO for GRE and still don’t have experience managing people. Resources mentioned: Show Notes: Steve Sims’ website: Get mortgage loans for investment property: RidgeLendingGroup.com or call 877-74-RIDGE JWB’s available Florida income property: To learn more about eQRPs: text “GRE” to 307-213-3475 or: By texting “GRE” to 307-213-3475 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. Make passive income with apartment and other syndications: Best Financial Education: Get our free, wealth-building “Don’t Quit Your Daydream Letter”: www.GetRichEducation.com/Letter Our YouTube Channel: www.youtube.com/c/GetRichEducation Top Properties & Providers: Follow us on Instagram: Keith’s personal Instagram:
Partial transcript:Welcome to GRE! I’m your host, Keith Weinhold. There’s so much to pack into one show today - inflation at its highest rate in over 40 years, the Fed raising interest rates the most in 28 years, rents are going up fast, then GRE’s COO Aundrea Newbern & I on our favorite REI resources. Today, on Get Rich Education.
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Welcome to GRE! I’m your host, Keith Weinhold.
When it comes to developing your personal brand to it’s highest potential, what are those traps you might be falling into that have prevented you from doing so. And…
There was once a construction worker in London and one day he realized that this just wasn’t where he was meant to be in life.
He contributes to the personal brand discussion today too… on this week’s episode of Get Rich Education. ______________
Welcome to GRE! From Franklin, MA to Franklin, TN and across 188 nations worldwide… I’m Keith Weinhold.
With more than 4 million listens, though you’re tuned into one of America’s longest-running and most listened-to real estate shows, today, it’s about how to develop your personal brand which applies most anywhere.
There are a few definitions of a brand. A more strict one is that a brand is an intangible marketing or business concept that helps people identify a company, product, or individual.
OK, I guess that’s pretty good. Another definition of a brand I’ve heard that I like is: “Your unique promise kept over time.” That’s what a brand is.
A big part of keeping promises is doing what you say you’re going to do. Therefore, it’s a commitment.
In my mind, a big part of that is keeping your appointments.
If I’m going to collaborate with someone and we have a pre-determined date & time, I put that on my calendar and I would not change that commitment unless some inordinate or unusual circumstance came up.
That person trusted me with their time and I trusted them with my time. If someone tells me later that they’d like to re-schedule with me, well, often I don’t do it.
With all the choices I have for spending my time, their wavering commitment doesn’t really reflect so well on their personal brand.
Also, other people would have liked to have that time with me & they couldn’t get it because I already committed it to that person that wanted to cancel or postpone.
People that have their act together, well-branded people, commit and show up on time.
I’ll give you an example of a well-branded person that keeps commitments - whether you like him or not, in my experience, that is, yep, Rich Dad, Poor Dad author Robert Kiyosaki.
Robert & I have done a bunch of collaborations in the past, I used to be a writer for the Rich Dad Advisors, he’s been a guest right here with us on the GRE Podcast four times.
Not once have we tried to re-schedule or cancel an appointment on each other.
Even if we plan something a month in advance, we keep it. We don’t have to send each other reminders. It was put on our calendar at the time we made the appointment, so what more do you need?
And you wonder why that guy is so successful. Well, one reason could be that he keeps commitments.
Now, when it comes to your personal brand - which includes your belief systems, your values, commitment levels, there’s one thing that some people need to “get over” - and I think that Hal Elrod & I touched on this here on the show 3 weeks ago.
It’s this myth. There are people that brashly say, “Hey, I don’t care about what other people think of me.”
Oh, that’s wrong. You do too care about what other people think. Because that’s your reputation.
It can be interesting to see the person that says they didn’t care about what other people think, say, have a fake social media account made up impersonating their likeness and embarrassing them.
You had better believe that person that said they don’t care about what other people think… frantically tries to point out that, “Hey, I don’t want you thinking that was me over there spamming you.” Someone is impersonating my account.
“Oh, well didn’t you just say that you don’t care about what other people think?” See you did care… and you should. That’s your reputation.
What if you own a restaurant & people leave negative reviews about your business & you as a businessperson, you care.
DO CARE… about what others think. That’s honesty. But yeah, don’t care too much.
People will care about your brand when they know that you can bring them value. When you start with creating value first, second is how are you going to reach people, and then thirdly, it’s how are you going to create income.
It’s value, reach, then income. 1-2-3
I’m reaching you right now with this show. In fact, there was a time, between 5 & 10 years ago, that even by having a show like this, one could create value, reach, and income.
For new entrants, those days are gone. The podcast landscape became saturated a few years ago and it’s almost impossible to get substantial reach today.
For startups today, a podcast is a lot like a website was 20 years ago.
Neither one stands out just by virtue of having one.
You can have a website just like you can have a podcast, but anymore, how would you ever get enough website visitors to make a difference or how would you attract enough podcast listeners to make a difference.
Even celebrities that have name brand recognition that have crossed over and started podcasts usually don’t get much traction anymore. They are drowned out in a saturated field.
So if you want your brand to reach people today, well, that’s a really long discussion and this isn’t a marketing show. So I’d start with just two pieces of guidance:
#1 - Look for that new media source that isn’t crowded today. It might be that “next” media type. For a while, people thought that it might be voice-activated media like Alexa or Siri. I don’t really know that that’s getting traction like some thought. But that’s the way to be thinking. “What’s next?”
Secondly, if you know of a thought leader that wants to get their message out with a podcast today, rather than starting their own show and entering a crowded field… gosh, starting your own show, you could spin your wheels with many episodes and unlike a website that doesn’t need to be constantly updated…
… a podcast takes regular releases, and production, advertising, sound engineering and marketing, transcription, and a support network of complimentary resources from video to social media and more.
Well, I’ve got a great shortcut to that… in the podcasting world that will save you a lot of time, money, and frustration.
If you know someone that wants to get their message out through a podcast today, the big shortcut is to be a guest on another show that already has a big following.
That way, you’ve outsourced all of the production and marketing and everything else to a proven channel. That can save you hundreds or thousands of hours in your life.
Rather than starting a podcast, be a guest on a few big name shows.
Now that you know how you’re going to provide value to the world, you’ve got your reach too.
Hey, I’ve got more thoughts like this for you on building your personal brand. Before I share those, let’s talk to today’s remarkable guest on how to build your personal brand. ___________
Oh, yeah, a really interesting interview with Steve Sims today.
One thing we discussed is that you can’t snap your fingers and instantly make yourself someone that you’re not. It’s about gradually being who you are becoming.
Now, here at GRE, our show keeps growing and about two years ago, I needed to make a new key hire to run the internal operations here so that I could have enough time clear to make the best content for you every week.
But, gosh, I really didn’t know how to make a quality hire here - like, to bring in an experienced pro.
Realizing I didn’t even know how to hire someone, I looked around my network of people… and I knew that Ken McElroy had employed a Hiring Manager, Jennifer, to help him and I tapped her so that Jennifer could find a COO for GRE.
Jennifer & I worked on the position advertisement, she interviewed the top candidates, narrowed it down to three, and Aundrea was selected.
Then I got Garrett Sutton to help me write the work contract.
So, I had acknowledged that hiring a top pro was beyond my skillset.
And Aundrea is such a professional here - she has her MBA too - that when GRE added more staff later, she’s the one that does the interviewing - not me.
And then… continuing in this vein of, “Don’t pretend to be someone you’re not.”
When we make a new hire here at GRE, I don’t pretend like I have some lofty corporate experience at knowing how to run things around here.
When I first talk to that new hire here, I simply tell them the truth. I say something like:
“I found myself with a show here that a lot of people seem to like to listen to… but don’t have any experience managing people. So I really want you to feel comfortable in speaking up when you think I could be doing something better.” Yeah, I tell everyone something like that.
Alright, well, what did that just do when I told them this?
Steve made a terrific point at the end about brand clarity - being clear on what your brand stands for - whether that’s your personal brand or your company’s brand.
I told you near the start of the show that commitment & respecting other people’s time is a big part of my personal brand. Certainly, attention to detail too.
GRE’s brand clarity is in four words: Real Estate Financial Freedom. Those four words tell you where you & I are going together & how you’re getting there too.
Once you’re in the GRE world and tribe, then we can get more nuanced, for example, with our strategy and brand of “FF beats DF”. And with that, you see how “RE FF” is achieved faster.
I sign off each show with “Don’t Quit Your Daydream” and it’s a trademark that we own here at GRE.
So the point is, be clear and memorable in order to have a successful brand for yourself.
This doesn’t have to be that well-developed and you don’t have to have terms trademarked to have a strong brand.
Juan, my landscaper wacks all the weeds along my fence and doesn’t leave any clippings behind. I can see that his brand was there - imprinted in my backyard.
Speaking of some other well-branded real estate figures, if you want to listen to Grant Cardone & I together here on the show, where we 10X your wealth together, he was with us on Episode 264.
Robert Kiyosaki’s latest appearance here on GRE was last year. You will find he & I together most recently on Episode 358.
As far as today’s chat, you might be interested in SEEING Steve Sims & I’s chat from today other than just listening to the audio here. It might help reinforce some of these branding concept for you.
He’s also just a really interesting figure to see and listen to. You can do that on your YouTube Channel… which is really easy to find and remember… because we’re - I suppose - consistently-branded - ha!
That’s because our YouTube Channel is called “Get Rich Education”. I’d expect that video to be published there by about now.
Personal branding means that there is… perhaps… a better investment than leveraged income property.
That investment… is YOU.
Until next week, I’m your host, Keith Weinhold. Don’t Quit Your Daydream!
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Mon, 20 June 2022
For many, it’s become a scary world with $5-$6 gas, soaring food prices, spiking rents, the medical system is still a mess, and wages aren’t keeping up with inflation. Inflation is at a 40-year high of 8.6%. The Fed raised rates ¾%, the biggest jump in 28 years. For every $1M in real estate debt that you have, you’re benefiting $86,000 each year due to your debt debasement. Affordability has become so bad for wannabe first-time home buyers that increasingly, they’re becoming your renter. Many project rent growth to exceed home price growth this year. Rent.com’s Rent Report shows a 26% annual rent increase nationally. Every 1% in a mortgage rate increase decreases a buyer’s purchasing power by 12%. GRE’s COO Aundrea Newbern, MBA joins me. We discuss our favorite RE information sources. Aundrea expects to diversify her RE portfolio into more markets. She’s been focused on southeast Georgia. Some RE resources we use: www.city-data.com, US Census Bureau data, CNBC.com, HousingWire.com, FRED data, the MLS, AirDNA.co, GREmarketplace.com. When considering adding to your RE portfolio, simply talking to a Property Manager can be more valuable than the best website. Aundrea sees a balanced market at prices $250K+, and a sellers’ market at prices below $250K in southeast Georgia. Days On Market (DOM), Sale-To-List Price Ratio discussed. LTRs are in high demand and low supply. STRs are saturated in many markets. Resources mentioned: Show Notes: Rent.com’s Rent Report: https://www.rent.com/research/average-rent-price-report/ Get mortgage loans for investment property: RidgeLendingGroup.com or call 877-74-RIDGE JWB’s available Florida income property: To learn more about eQRPs: text “GRE” to 307-213-3475 or: By texting “GRE” to 307-213-3475 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. Make passive income with apartment and other syndications: Best Financial Education: Get our free, wealth-building “Don’t Quit Your Daydream Letter”: www.GetRichEducation.com/Letter Our YouTube Channel: www.youtube.com/c/GetRichEducation Top Properties & Providers: Follow us on Instagram: Keith’s personal Instagram:
Partial transcript: Welcome to GRE! I’m your host, Keith Weinhold. There’s so much to pack into one show today - inflation at its highest rate in over 40 years, the Fed raising interest rates the most in 28 years, rents are going up fast, then GRE’s COO Aundrea Newbern & I on our favorite REI resources. Today, on Get Rich Education.
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Welcome to GRE! From Auckland, NZ to Oakland, CA and across 188 nations worldwide. This is Get Rich Education. I’m your host, Keith Weinhold.
Before I discuss real estate, what’s happening with inflation & interest rates is so exceptional that I want to cover this first.
When the latest inflation reading came in at 8.6%, it dashed hopes that it's peaked. We have no evidence that it’s peaked.
And as I like to say, that 8.6% is just the level that the government is willing to admit to. It's really higher.
It's the third month in a row that it has exceeded 8%.
Treasury Secretary Janet "Grandma" Yellen has already warned of what she calls "unacceptable levels of inflation".
And Yellen looks like my late Grandma Weinhold. Yeah, they look a lot alike. One difference though, is that Grandma was not wrong about inflation.
Another difference between my grandmother and Yellen is that… Janet Yellen never gave me Star Wars action figures on Christmas like my Grandma did.
Well, for many people, especially in the lower middle class, it's become a scary world with devastating $5-6 gas, soaring food prices and spiking rents. (I’ll get to that shortly). The medical system is still a mess. Wages are up perhaps only 5%.
Their quality of life is really suffering now.
Libertarians point out that fiat inflation is theft of one's private property. You earned a dollar. Now your prosperity has been stolen.
Sneaky shrinkflation is stealing from you too. Yeah, you're not imagining it,
Gatorade has trimmed its 32 ounce bottles down to 28 ounces. A small box of Kleenex has shrunk from 65 tissues down to 60.
Package sizes are shrinking faster than Lake Mead, all while producers charge the same price or more. That’s what shrinkflation means.
It's become an awful economic malady for consumers.
So, let’s talk about higher interest rates since that’s what can keep inflation from soaring.
Many interest rate types are based off of the Federal Funds Rate.
Now, I like to look at history to see what typically happens in like scenarios. History doesn’t tell you everything, but many people don’t look at it.
Rewinding three years, this rate was hiked up to 2.5% by early 2019… and the stock market was freaking out by then. Trump even demanded a rate cut. He got it and that, turned stocks around.
Yes, Presidents are supposed to stay independent of the Fed, but, in any case…
Just last week, the Fed Funds Rate was raised up to 1.75%... and the stock and crypto markets have already taken a swan dive off the high board.
Everyone thinks that rates are going to be raised again at the next Fed meeting next month.
So how do you think that equity markets are going to like that? History shows us that they don’t.
But see, history shows us that even when the Fed Funds Rate is raised to 10%, it can take years to quell inflation.
Commodities like housing, food, and energy, often excel in either inflationary times or recessionary times.
That’s where you want to be. Buy & own what people need, not what they want.
These things have a finite supply. Bringing them into existence takes "proof of work".
Proof of work means that it takes real world resources to extract or produce something—like framing roof trusses, growing timber for lumber, mining gold, extracting oil, or growing wheat.
If you held any of these commodities individually, you might merely hedge inflation.
But if you can control an entire commodity by only putting one-quarter or one-fifth of your "skin in the same", then you get to short the dollar too.
"Shorting" means that you're betting that something is going to fall in value—the dollar in this case.
Now you're creating leverage and arbitrage. You're really profiteering from inflation ehre.
Real estate is like a basket of commodities. It is made of: lumber and copper and glass and all kinds of commodities.
So, if you have $1M in real estate debt, it's now being debased at a rate of 8.6%. Great.
This effect alone has increased your prosperity by $86,000 this year—$86,000 this year alone, and that’s besides appreciation, income, tax benefits, and amortization.
Yeah, you’ve got an $86K tailwind.
Do you remember back in 2019 when I did the podcast episode called The Debt Decamillionaire? It was Episode 260. You might remember that episode.
That's when I touted the counterintuitive merits of taking out $10M in real estate debt... with the payments outsourced to tenants.
Now, I know that not everyone has the wherewithal to do that. But if you were able to implement that plan, it has now created an extra $860,000 of annual wealth for you.
Yes, as one of just five ways you’re paid.
If you think that sounds scary - or unconventional - it’s definitely unconventional. Because being conventional gets one nowhere.
So, though you might have not been able to amass that much good debt, I was ahead of the inflation, helping you get out in front of it to take advantage of it. Of course, I talked about it well before 2019 too.
And, no, I sure didn’t know that a pandemic was coming in 2020 and it was going to bring all this inflation this quickly… but that is how things worked out.
Now, if you’re uninitiated on this, if you originate $10M in loans, understand something. Your net worth didn’t just decrease by $10M on the day that you got the loan.
The day that you originate the loan, what happens is that you’ve now got $10M in your asset column and $10M in your debt column.
Leverage amplifies the $10M in your asset column… and then your debt column erodes through both tenant-made principal paydown - and this higher inflation.
Maybe I’m stretching your thinking just merely by discussing 8-figure debt like that.
So why is someone really compelled to be a real estate investor today?
One big reason is that soaring inflation is going to be around for a while.
So last Wednesday, when the Fed raised interest rates three-quarters of 1% - their highest daily increase since 1994.
Understand that higher interest rates decrease demand. There's another name for substantially decreased demand. That is called a recession. I don’t know if we’ll get that far.
Now, capitalism is not inherently inflationary.
Sure, as employers' demand for labor rises, that's inflationary.
But as businesses compete to offer goods and services at the lowest price - which is capitalism - that's deflationary.
Libertarians are quick to point out that America has too much government intervention to be considered a truly capitalist economy anymore. That’s a different conversation.
But some have speculated that politicians are plotting another stimulus check drop on American citizens so that they can deal with inflation.
I really hope that they do not do that. Sheesh, this would be a policy blunder. This would be like shooting a man that's already dead.
This absurd approach of "printing up currency" would be to help people deal with the consequences of... "printing up currency".
If you think that’s preposterous, well…
Quebec is actually doing this. They're issuing $500 stimulus checks to help the Canadian province's residents deal with inflation.
Yeah, that’s really happening.
Soaring gas prices aren’t just painful for summer road-trippers. Because fuel is a critical input for so many goods and services, higher costs are causing havoc across the economy in a lot of places that you wouldn’t expect it… Aviation: Airfares in the US skyrocketed 19% in April from a month earlier, an increase that is almost exclusively driven by a jump in jet fuel prices, United CEO Scott Kirby said. Now, you might have expected that one. But get this… Law enforcement: A sheriff’s department in Michigan instructed its deputies to cut back on visits for non-urgent calls because it had blasted through its fuel budget with months remaining until a new one kicks in. (Yeah, inflation affecting law enforcement!) Emergency services: An ambulance crew in Pittsburgh said it was limiting its service outside of 911 calls after facing a similar budget crunch. Its fuel expense for the full year is typically $50,000, and it’s already got close to that entering June. Landscaping: Lawnmowers and trimmers use gas to make your front yard the envy of the neighborhood. But after absorbing all of the cost increases they can, some landscapers have slapped a surcharge on customers, and others are even looking into electric mowers and propane as an alternative fuel. In any case, a look at history tells us that we could be in for high inflation for a full decade.
So make financial decisions accordingly.
Risk assets are typically really sensitive to big moves in inflation and interest rates.
Major stock indices are down, down, down.
And cryptocurrencies are in an all-out historic meltdown. They’re more volatile than stocks, and many have lost 50%-60%+ of their value just this year. Crypto trading platforms have halted withdrawals Companies cut jobs Panicked investors dumped their holdings The public is finally dismissing promoters' claims of "Hey, I made $50k on doodoo coin. So you can you!". You don’t really hear that lately.
Let's Go Brandon Coin, now worth $0.00. And “Let’s Go Brandon” coin makes Dogecoin look like some sort of respectable family heirloom.
I actually still think bitcoin could have some potential, but…
So then where to look? Where do you go for yield today?
Some feel that the "true rate of inflation" is 15% today. Then that's how much prosperity you lose by storing cash.
(I believe it's wise to hold at least 3-5% of your real estate portfolio's value in cash.)
One place could be oil if you think there’s still a runup to be had there. But oil has performed well so far this year. Gold still hasn’t really awakened despite inflation.
What you can do… is…
Follow the money. Big institutional buyers like American Homes 4 Rent keep plowing money into real estate, especially single-family rental homes.
That’s historically the place to be in times of either high inflation or a recession.
Though the institutional share is increasing, the overwhelming majority of homes are still bought by individuals just like you.
In the fourth quarter of 2021, institutional buyers only comprised 18% of home purchases.
As affordability clamps down on wannabe first-time homebuyers, unfortunately, many of these fine people never make it to the closing table.
Every 1% in a mortgage rate increase decreases a buyer’s PP by 12%.
Mortgage interest rates are now 6%+ on OOs, about 7% on rentals. I believe that the only way houses are going to get more affordable anytime soon is if mortgage rates come down. That’s because home prices aren’t coming down anytime soon.
So what do these priced-out people do? Increasingly, they become your renter.
Rent price growth is predicted to outpace home price growth this year.
Though some measures are lower, Rent.com's Rent Report shows an astounding 26% annual national rent increase.
While a lot of major markets are struggling with a streak of Fed rate hikes that could drag on longer than the final two minutes of an NBA game...
...for real estate investors, the rent just keeps flowing in.
And here’s what it comes down to. Picture this. Like I’ve discussed before, first home prices rise, and then rents follow later.
Picture two waves. Say that these two waves are 18 months apart. The first wave is home prices. Today, prices are still climbing but the wave has likely crested.
That second wave that’s coming in now are the torrid rent price increases.
The trough between the two waves is where the cash flow is worst on new purchases.
And now the second wave - that rent increase wave - is building.
That’s the ah… seafaring here in the rental housing market ocean if you will.
Hey, In the past, I’ve discussed where I’ve invested and what RE types I like to own. Why don’t we hear from GRE’s own COO Aundrea Newbern, MBA about how she’s positioning her portfolio in this environment of normalizing prices & spiking rents. Also, she & I will discuss some of our favorite resources & websites for real estate info. That’s straight ahead. I’m Keith Weinhold. You’re listening to Episode 402 of Get Rich Education! __________________ Yeah, great stuff from Aundrea, as always. We discussed markets. Of course, it’s about the submarket too. As an example, maybe you don’t feel like Erie, PA or Toledo, OH or Grand Rapids, MI are fast-growing markets. Actually, I think Grand Rapids, for one, is growing, but the point is, that even if a metro has a stable population but it’s, say, medical district is booming - like a lot of cities’ medical districts are… you may very well be better off in an OK metro with a booming medical SUBmarket than you are elsewhere. It’s often about that SUBmarket within a metro that really matters to you. There aren’t too many places that you can invest & get yield today. But high inflation is the motivator to do so. Create one login, one time, it’s free & get access to all of our provider at GREmarketplace.com For everyone here… COO Aundrea Newbern, MBA, Content Manager Matthew Blunt, Producer - me &, Sound Engineer, Investment Coach Naresh Vissa, Website Marvin Diaz Jr, Advertising Jake Madoff, I’m your host Keith Weinhold. Don’t Quit Your Daydream!
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Mon, 13 June 2022
The housing market has calmed, but it’s still strong.
The homeownership rate of 65% is poised to fall these next few years. People must live somewhere. This should make for more renters. Mortgage delinquencies have fallen for seven straight quarters. The forbearance program kept people in their homes. “The Great Reshuffling” describes the US housing market since 2020. Inflation flips money upside-down. Focus on prudent borrowing, not saving. International Man Doug Casey joins us. He calls for a “Greater Depression” ahead. For consumers, the costs of energy, food, and housing have become crippling. Doug thinks that the decline of world economies will continue. World cities have more people living on the streets. He thinks that the Fed can’t hike rates very high. It will result in too many debt defaults. Then how will inflation be curbed? Doug thinks you should save, but don’t save in dollars. Are price controls coming? That’s when the government tells companies that there’s a ceiling on the price they can charge for their goods and services. We discuss what you can do to prevent being wiped out in a crisis. I discuss living well vs. austerity. Resources mentioned: Show Notes: More on Doug Casey: Current US debt level is over $30T: Get mortgage loans for investment property: RidgeLendingGroup.com or call 877-74-RIDGE JWB’s available Florida income property: To learn more about eQRPs: text “GRE” to 307-213-3475 or: By texting “GRE” to 307-213-3475 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. Make passive income with apartment and other syndications: Best Financial Education: Get our free, wealth-building “Don’t Quit Your Daydream Letter”: www.GetRichEducation.com/Letter Our YouTube Channel: www.youtube.com/c/GetRichEducation Top Properties & Providers: Follow us on Instagram: Keith’s personal Instagram:
Partial transcript:
Welcome to GRE! I’m your host, Keith Weinhold. While much of America & the world keeps getting crushed by inflation, you’re profiting from it.
I provide you with a housing market update… then, as higher inflation reduces the quality of life for so many WORLD residents, today’s guest gives both us a global and national perspective on the prospects for a DEpression, today on Get Rich Education. __________________
Welcome to GRE! From NYC’s Brooklyn Bridge to Bainbridge Island, WA and across 188 nations worldwide, I’m Keith Weinhold. This is GRE!
And it’s Episode 401. Now, no, it’s definitely not episode 401(k). No life deferral plans here! Uh, oh excuse me… they’e called… uh, tax deferral plans. Though life-deferral plans would be a more apropos moniker.
I’m grateful that you’re here for another wealth-building week.
Now… asking an angry spouse to calm down is not exactly a tactic that's... effective.
By now, Jerome Powell has been effective at raising interest rates to help America's housing market calm down.
Though mortgage rates have inched lower in recent weeks, they're still 2% higher now than they were a year ago today.
In fact, the rate rise from early March to early May was the swiftest that I've seen in my entire life.
Rates scaled a wall. Clearly, this impacts affordability.
The rate of property sales is a little lower now… off its peak.
It's getting more Darwinian out there. The NAR estimates that 15% of wannabe first-time homebuyers will be priced out of the market this year.
People have to live somewhere. If they can't own, they'll have to rent... or keep living in their parents' basement… that’s an option for some people too.
Right now, the homeownership rate is 65%... and that is pretty close to the average of the past few American generations.
I’ll tell you… that 65% homeownership rate is poised to fall faster than dogecoin.
Well, what this likely falling home ownership rate means is that the renter pool should swell, putting more upward pressure on rents.
That’s what happens. If home ownership goes from 65% to 60%, then America’s renter proportion basically goes from 35% up to 40%.
You know how I've talked about how home prices rise first, then rent increases lag behind? Well, this is it. This is the place and time where rents catch up.
With housing prices, are we set up for a recipe of "housing crash" or is it more like "housing calm"?
Looking at purchase applications, demand is probably past its peak. But housing demand still drastically exceeds supply.
Normal housing supply is about 1.5 million units. We've come up from a jaw-dropping paucity of 376,000 homes back in February. And it's still just 516,000 now (chart).
We're only up a tad from famine-like levels.
America still needs about 300% more inventory just to bring the market back into supply-demand balance.
Housing supply is inelastic; it cannot be increased quickly. It'll take several years to reach balance.
How else can we measure this balance? One way is with days on market (DOM).
Pre-pandemic it was 45 days. Now, despite higher interest rates, it's under 30 days & under 20 days in a lot of markets.
Mortgage delinquencies have fallen for seven straight quarters. The forbearance program worked. One can critique its morality. But it kept people from losing their homes.
As the market entropy - with wild bidding wars & a “free for all”, couldn't last forever - nor was it good that that condition persist - it's still a strong housing market.
Expect a gradual return to a calmer, more normalized condition. Yes, “calmer” market conditions are poised to emerge here.
Hey, pretty soon, you might not have to offer more than the list price for a property.
Expect less competition from all-cash buyers. Sheesh, “all-cash buyers”. What are those zero-leverage psychos doing anyway?
Hey, property inspections are coming back. Imagine that you can ask a seller to fix some things for you and not fear that they'll reject your offer.
So what is the bottom line with today’s housing market?
Rents should keep rising faster than historic norms.
Supply is so low that housing price crash prospects are near zero, probably even through 2023.
20%+ annual price increases still exist in many markets. Nationally, this is calming now.
By the end of the year, home price appreciation should still be higher than the historic norm of 5%.
And you know…
Back on December 1st of last year, I published GRE's 2022 National Median Housing Price Forecast and I also announced it on this show at that time that I expected a 9% to 10% rate of home price appreciation this year.
We’re nearly at mid-year here, and I still like how that forecast looks.
In America, you’ve heard of the Great Resignation or the Great Migration but I think that the term that best encapsulates what’s gone on in American housing since the start of this decade is “The Great Reshuffling”.
Working from home was a significant driver of this "Great Reshuffling" and accounted for more than half of the steep increases in home prices seen during the pandemic. That’s what new research has found by the Nat’l Bureau Of Economic Research.
By now, you’ve got more Americans that are shuffled into place. That found that long-term home with the realities of their new life.
That’s the bottom line. There is a Great Reshuffling, and now people are settling into place so we’re kind of seeing this welcome “calming” of the housing market as we move toward eventually settling into more normal conditions.
Well, hey. Thank you for the “Instant Reaction” from so many of you after last week’s milestone Episode 400 where Hal Elrod & I discuss how to improve relationships and be a person of value.
Greg from the United States remarked: “Two of my favorite people were together in one episode. I’ve been following Keith since the beginning of his podcast and journey… and I love “The Miracle Morning” and practice it habitually.
Roxana from Romania said, This was just phenomenal! A terrific talk that I listened to three times already. Thank you for all the good that you do through GRE! Congratulations for 400 episodes.”
I appreciate the remarks there, thanks.
You know, I want to hear from you, the listener.
If you’ve been following along here and you’ve acted by putting income property into your portfolio and you’re now the beneficiary of inflation & you’re profiting from this inflation… with the Inflation Triple Crown… from time-to-time, we like to have a listener on the show.
If that interests you, reach out to us through: GetRichEducation.com/Contact
There’s no guarantee that we can get you on the show here. We have 50x as many requests to appear on the show as available slots.
But if you’ve had your life impacted, we want to hear from you. You don’t need to be a big name.
In fact, if you’re just sort of salary or wage-earning person that’s had their life impacted by taking GRE principles and putting them into action, I want to hear from you.
Again, get started there at: GetRichEducation.com/Contact
Inflation flips money upside-down.
Though inflation isn’t a new story, most experts believe that inflation is going to stay elevated for a longer period of time here.
I think that some people - everyday people - let themselves be coerced by inflation. So they cut back on grocery spending & complain about car gasoline prices & lament that their 401(k) is plummeting & live small and maybe even live miserable.
Then there’s this increasingly popular narrative that seems to enforce that - you’ll do with less & you’ll be happy about it.
And you hear more about buzzy terms, like, well “Reducing your standard of living is what “sustainable” looks like. Don’t you want to live sustainably?”
And people will try to conserve gasoline consumption by biking in the rain and having a muddy streak up their back.
Now, all things equal. I think that doing this for the environment can be good. That’s fine.
Rather than sustainability, some try to mask the quality of life degradation (from inflation)... justifying it with… well, I’m practicing “minimalism”.
Minimalism. Yeah, I don’t need to go on vacations. Translation = I’m too fearful of my financial security to even get out and see the very world that I live in.
Whoever said that less is more never had more… and why have more when you can “have it all”? I kid a little bit here…
But… if you keep your quality of life because you invested in real assets with good debt… then go ahead and recycle some more consumable items in your household if you want to help the environment.
You don’t get to recycle your life. You’ve only got one of those… at least here on this earth.
Today’s guest believes that the prospect of a Greater Depression lies ahead. Let’s explore this together, today. _________________
Yeah, it’s good to get the bigger-picture perspective sometimes.
Doug feels that future RE price increases could be in question. Well, even if appreciation completely stopped in the future, today you can still lock in low mortgage interest rates & rent that property to others… with persistently high inflation debasing your debt all along.
I brought up price controls in our chat today, which is when the government steps in & says something like, no, gas station, you absolutely cannot charge more than $6 per gallon for gasoline, or no, leaf lettuce grower, you cannot charge more than $4 for a one pound bunch of leaf lettuce.
That ceiling - that price control - has often led to disastrous consequences for economies.
Prices often got high in the first place because there’s a relative scarcity of those goods.
Then if you put a price control on, say, leaf lettuce, then producers are less incentivized to produce. They won’t produce at a loss.
When producers stop producing, then there’s even less reason for anyone to produce the item, making it more scarce, making your consumer choices more narrow & making your life worse.
Price controls can turn out to be a form of austerity.
Then there’s more direct austerity - which is analogous to saying that you cannot run your air conditioner below 80 degrees in order to conserve electricity.
Well, that DIRECT austerity measure also reduces your quality of life… and it’s politically unpopular. A President doesn’t want to institute a direct austerity measure like electricity conservation.
So a price control has more political expediency than austerity but it can have the same drastic result - reducing your consumer choice and quality of life.
If you picked up on what Doug was saying, he said that you can save. But don’t save in dollars. Saving in dollars guarantees a diminishment of your purchasing power.
My take is that saving in dollars guarantees a loss in you & your family’s standard of living. So the best way to avoid a “Greater Depression” at home, is to be vigilant that…
Inflation flips money upside-down. Get out of dollars. Get into real assets & debt.
We’ve built a resource here to help you do exactly that. Get out of dollars, get into real assets & good debt at GREmarketplace.com
You’ve got the best markets & proven providers of income property. Create one login one time and connect with providers right there at GREmarketplace.com
Until next week, I’m your host, Keith Weinhold. DQYD!
|
Mon, 6 June 2022
You often relate to other people when you show yourself as vulnerable and fallible. In many contexts, this is even better than acting professionally. Today’s guest, “Miracle Morning” author Hal Elrod, tells us that people spend too much effort trying to impress others. When you give the most, it’s liberating. “You SHOULD care about what others think of you. That’s your reputation.” -Keith Weinhold Once, Hal e-mailed friends, ex-girlfriends and colleagues to seek criticism about himself. That feedback hurt. Everyone wants change, but no one wants to change. Generosity, selflessness, and contribution foster meaningful relationships. I share that viewers were recently critical of my YouTube video. Hal admits that he believes that he’s not a great listener. Hal strives to add value to every single person that he meets. Aundrea Newbern, GRE Operations Lead, joins us for milestone Episode 400. Resources mentioned: Show Notes: Hal Elrod’s books and movie: Hal’s friend John Ruhlin’s book “Giftology”: https://www.amazon.com/Giftology-Increase-Referrals-Strengthen-Retention/dp/1732095604 Get mortgage loans for investment property: RidgeLendingGroup.com or call 877-74-RIDGE JWB’s available Florida income property: To learn more about eQRPs: text “GRE” to 307-213-3475 or: By texting “GRE” to 307-213-3475 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. Make passive income with apartment and other syndications: Best Financial Education: Get our free, wealth-building “Don’t Quit Your Daydream Letter”: www.GetRichEducation.com/Letter Our YouTube Channel: www.youtube.com/c/GetRichEducation Top Properties & Providers: Follow us on Instagram: Keith’s personal Instagram:
Partial transcript: Welcome to GRE! I’m your host, Keith Weinhold. Being a person of value and building lasting relationships often comes down to self disinterest, empathy, and connection. You’re going to build not just your wealth mindset, but your skillset.
It’s milestone Episode 400, today, on Get Rich Education!
Welcome to GRE! From Cherry Hill, NJ to Cherry Springs Dark Skies Park, PA and across 188 nations worldwide, you’re listening to one of America’s longest-running and most-listened to shows on real estate investing.
That’s our major so to speak… with minors in economics and wealth mindset. I’m your host, Keith Weinhold. You probably know that after 400 episodes.
Today’s guest doesn’t often do podcast conversations like this. But GRE’s Operations Lead, Aundrea introduced me to “Miracle Morning” author Hal Elrod last year.
So Hal is standing by, and then, a bonus, as Aundrea joins me near the end of the show today as well.
Yeah, so here on milestone Episode 400, there aren’t any balloons falling out of the sky or anything. It’s an opportunity to expand your thoughts & mindset & skillset in a different direction that should benefit you both within real estate investing & your broader life outside of it - from relationships with your real estate agent to your spouse.
In human relations, more than ever, people relate more to you as a vulnerable and even fallible person than they do as one that acts strictly like a professional in a lot of circumstances.
The best way to show others in a business relationship (that you don’t know very well) that you’re a real human being & that loosens up both of you & make you laugh is when you go out of your way to point out that when you left home this morning… you’ve got mismatched socks on… and you make some joke about it… something innocuous yet relatable like that.
Then there’s handling ego and criticism in a way that makes you endearing and empathetic.
And by the way, the definition of empathy is “the ability to understand and share the feelings of another person.”
Now, we get overwhelmingly positive feedback and comments about the show here… and I am grateful to you for that, whether it’s through Apple Podcasts reviews, or where you can always reach out if you’ve got a question or concern or suggestion at GetRichEducation.com/Contact… or increasingly, we get more & more comments from you on our Get Rich Education YouTube Channel.
There is a rather robust comments section there…
… and there’s one popular video that we have over there. It has more than 100,000 views and a lot of “Likes” and “Comments”. And I was rather criticized for how I handled this video - it was an interview.
Now, it was the type of video that crossed over, it didn’t bring in our usual real estate investor crowd. It was kind of a hybrid crowd of geography & real estate.
And, again, we get overwhelmingly positive feedback here. But the nice remarks aren’t where you get the lessons, so… I got dozens of critical comments on this video… and these commenters were clearly critical of the way that I handled the interview. It wasn’t the guest.
Comments were rather disparate. Some said that I brought no value to that interview - I was the host with a fairly prominent guest. Others said that I talked too much, some said I talked too little, it just seemed like I couldn’t do anything right with that crowd.
Now, one way that I could have handled it is set a policy here that any negative comments have to be deleted. We could have just deleted them all.
Well, I don’t want to do that. You can disagree. In fact, some say that a disagreement is actually the start of a great conversation.
We could go in there & reply and tell the commenter that they’re being dumb or say something else disparaging.
Here’s how I handled it once I learned about this. I went into the YouTube comments myself, read a bunch of the criticism, and made individual responses to a bunch of them. My response was something like:
Hey, thanks for the feedback. Others seem to take exception to this material too. It is probably in my best interest to read all of these comments, see what I can learn from this, and I’ve got to do better next time. I have clearly disappointed a lot of people.
That was my response. Something like that.
Well, what did that do… it appeared to engender… empathy, really. Some of the detracting commenters then came back to me & said, “Aw, you know, that wasn’t so bad. I don’t think there’s much that you need to change. I still learned a lot from your video.”
See, when I showed the world that I’m listening and that I’m a fallible human being, just like we all are, sometimes it makes the critic come back and sort of repent or even reconsider.
Next week, here on the show, “International Man” Doug Casey & I are going to discuss economics and what he thinks the prospects of entering what he calls “The Greater Depression” are.
Today, Hal Elrod & I on how you can be a person of value and build meaningful relationships… |
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