Detailed
Compact
Art
Reverse
December 9, 2019
You don’t have to get your hands dirty or own a tractor to have your own agricultural real estate. Humans need food to eat. Even futurists know that people will continue to need calories. The world population of 7¾ billion will rise to 11 billion by 2100. Coffee is the second most-traded commodity in the world. You can buy half-acre coffee or cacao (chocolate) for under $20K - $25K, turnkey-managed. It produces cash flow from the annual coffee cherry and cacao pod harvest.  You own the land in Panama and Belize. You can drink coffee or eat chocolate from your own far. I invest in this myself. Operation with three pillars of sustainability: social, economic, and environmental. Cash returns are 10-14% annually, averaged over twenty years. This doesn’t include land appreciation. Learn more about investing, where they’re having an “End Of The Decade Special” at:  www.GetRichEducation.com/Coffee www.GetRichEducation.com/Chocolate This special saves you thousands per parcel: 1 coffee parcel = $18,000 each 3 parcels = $16,650 each 6 parcels = $16,000 each For the Belize cacao (chocolate) parcels: 1 parcel = $24,500 each 3 parcels = $22,650 each 6 parcels = $22,000 each Cash or IRA funds are eligible. You won't see these prices again. For these rates, confirm your order by Dec. 16, 2019, with time to fund. There’s never been a better time to start in agricultural real estate. __________________ Resources mentioned: Learn about coffee investing: GetRichEducation.com/Coffee Learn about cacao investing: GetRichEducation.com/Chocolate Mortgage Loans: RidgeLendingGroup.com Turnkey Real Estate: NoradaRealEstate.com eQRP: Text “QRP” to 72000 or: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation
December 2, 2019
Money matters. It buys you freedom, options, and even the best medical care. You have the same 168 hours per week as Jeff Bezos or Bill Gates. Getting an MBA or Ph. D. is a slow way to wealth. How many of your 8 great grandparents can you name? See. Making an impact is rare. You can either live below your means or expand your means. By the time you’re age 30, you should know how to produce income without trading your time for it. Employees are motivated by fear. Wealthy people are motivated by ideas and value creation. You can only be truly free … with wealth. Middle class people want enough money to retire; rich people want enough money to impact the world. You can either be a conformer or build wealth. Your choice. __________________ Resources mentioned: Mortgage Loans: RidgeLendingGroup.com Turnkey Real Estate: NoradaRealEstate.com eQRP: Text “QRP” to 72000 or: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation
November 25, 2019
Rent amounts are more stable than real estate prices. The rent amount you can charge is based on incomes in an area. In real estate: rents behave rigidly; prices are more elastic.  Employment sectors dictate what type of worker buys and what type rents. Mortgage loan qualification is difficult; I’m qualifying myself. This is inconvenient, but it means borrowers are solvent.  This creates a barrier to entry and stabilizes prices. Tips: Be organized. Buy multiple properties from the same provider at the same time, if possible. Use the same mortgage company. The BRRRR real estate investing strategy is: Buy - Renovate - Rent - Refinance - Repeat. You can double or triple your cash-on-cash return with BRRRR. Learn about Baltimore BRRRR and Philadelphia turnkey property at: GetRichEducation.com/Baltimore Turnkey vs. BRRRR compared. __________________ Resources mentioned: Baltimore BRRRR & Phila. turnkey: GetRichEducation.com/Baltimore Mortgage Loans: RidgeLendingGroup.com Turnkey Real Estate: NoradaRealEstate.com eQRP: Text “QRP” to 72000 or: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation
November 18, 2019
Today, money is being printed on a massive scale. Interest rates have plunged.  This is a Fed “U-turn” from last year when money was being destroyed and rates were rising. What’s going on?  Richard Duncan of MacroWatch tells us.  We discuss how far the U.S. can “kick the can” down the road with their $23 trillion in debt. Richard tells us about the future direction of interest rates and inflation. Learn how deep the U.S. can go into debt. Get 50% off Richard’s MacroWatch video newsletter. Use the Discount Code “GRE” at: www.RichardDuncanEconomics.com I bring you today's show from Vancouver, British Columbia, Canada. 1) Get my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: MacroWatch: RichardDuncanEconomics.com Mortgage Loans: RidgeLendingGroup.com Turnkey Real Estate: NoradaRealEstate.com eQRP: Text “QRP” to 72000 or: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation
November 11, 2019
A four-unit building is how I began in real estate. Fourplexes can provide you with great financing terms and economies of scale. Steve Olson of the Fourplex Investment Group (FIG) joins us. Website: www.fig.us FIG builds new construction townhouse-style fourplexes for investors.  They operate in four high-growth U.S. states: Utah, Idaho, Texas - and Steve reveals their new market in this episode. FIG properties often have excellent resident amenities.  “Investor-savvy” HOAs help protect your investment. Their model best suits the investor that’s also a busy professional. FIG also offers duplexes and larger multi-family properties. 1) My FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: FIG Website: fig.us Mortgage Loans: RidgeLendingGroup.com Turnkey Real Estate: NoradaRealEstate.com eQRP: Text “QRP” to 72000 or: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation
November 4, 2019
Get a market update. Next, I answer your listener questions: 1: How do I start if I know nothing about real estate? 2: What’s better: existing or new construction property? 3: How do I identify an “up-and-coming” neighborhood? 4: How do I raise the rent without losing the tenant? 5: What if there’s a recession?  I bring you today’s show from Anchorage, AK. Next week, we discuss four-plexes. The following week, declining interest rates and more Fed money-printing. 1) My FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________   Resources mentioned: Credit Score help: MyFico.com Neighborhood Research: NeighborhoodScout.com City-Data.com Mortgage Loans: RidgeLendingGroup.com Turnkey Real Estate: NoradaRealEstate.com eQRP: Text “QRP” to 72000 or: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation   Welcome to Get Rich Education, I’m your host Keith Weinhold.   It’s YOUR listener questions today; What’s The Best Guidance For Beginners, Comparing New Construction vs. Existing Construction Property, How To Identify An Up-And-Coming Neighborhood, How To Raise The Rent Without Losing Your Tenant, and How To Position Yourself In The Event Of A Recession.    All today, on Get Rich Education.  ______________________   Welcome to Get Rich Education! I’m your host, Keith Weinhold with Episode 265 and I’m answering your listener questions today.    First, let’s get you up-to-speed with our asset Class Whiparound.    The Fed lowered rates last Wednesday by a quarter-point again.   It IS their third quarter-point rate cut this year, bringing the upper bound of the Federal Funds rate down to 1.75%   Just before air time here:   Year-to-date, real estate is up 3.5% per the Freddie Mac Housing Price Index. The Case-Shiller National Home Price Index is at right about that same 3.5% appreciation rate.   Next, the Freddie Mac numbers show us 30-year and 15-year mortgage interest rates are just a touch more than 1% lower than they were one year ago.   Yes, your COST of money is cheaper now than it was either one year ago OR two years ago.   The stock market has been thriving. The S&P 500 Index is up more than 21% YTD. It’s flirting with all-time highs, as its over 3,000 points now.   Oil prices have not done so well, Down 17% year-over-year    Oppositely, Gold has thrived as it’s up 17% just since the beginning of the year.   Last week, the Commerce Department told us that GDP expanded at an annual rate of 1.9% through the 3rd quarter, falling slightly from 2% a quarter earlier.   The rate of dollar inflation is currently 1.7% YOY as measured by the Consumer Price Index, which is tracked and published by the government’s Bureau Of Labor Statistics.   With the way that they calculate inflation, I think it’s a little hard to believe that the true, diminished purchasing power of the dollar is only 1.7% per annum.    I think that makes about as much sense as turning back the clocks back an hour like we all did the other night, personally.   That’s our Asset Class Whiparound like we do here just once in a while.   Let’s start with the first listener question … and I usually start off with a more beginner-type question - like this first one - and advance from there.     This question comes from Jackie in Esko, Minnesota.   Keith, I love your show. I’m 25 years old, just a year out of college with $22,000 in student loan debt, and I just began listening to you three weeks ago.   Now I’m going back to listen from the very beginning, Episode 1.    What is the best way for me to begin if I know absolutely nothing about RE?    Thanks for the question, Jackie.   Well, you’re on the right track with your learning by starting with Episode 1 of the Get Rich Education podcast.    Bigger Pockets has some very well-populated FORUM that’s good for your learning.   I’d also say, work on your credit score WHILE you’re learning about real estate investing. That’s important in a credit-based asset like real estate.   Learn about what it takes to improve your FICO score at myfico.com   Now, for a beginner, yes, it’s probably not the long-term answer that you want.    But it can be helpful to have a W-2 job … at least in the short-term … before you go onto to dominate your own real estate empire.   I mean … I had a day job for years. Not only does this income help you qualify for loans, but let’s look at some ideal day jobs that can help you advance your real estate CAREER at the same time.   Now Jackie, I don’t know what your college degree was in … but if you’re a true devotee to real estate, consider that, even if you have to accept less income ... there are day jobs that can actually align with your path toward being a real estate investor.   You could become a Property Manager for a management company. Now, that is a tough job but you will learn remarkable things about how real estate works from the inside.  Property Management is perhaps the LEAST-RESPECTED job in all of real estate, but it’s perhaps the most important … at the same time and the manager is probably the investor’s #1 team member.  Other day jobs that can help a real estate investor are:  Being an Asset Manager, Financial Analyst, Real Estate Agent (of course), or a Mortgage Loan Officer. With any of those related jobs, you’re going to learn about things like sales, marketing, pricing, maintenance & repair, capital improvements, and bookkeeping. There are other benefits to making your day job … real estate-related.  You’re going to get to know other people in the business - these could be your future collaborators. You’ll get to attend industry tradeshows. And of course, you’ll get substantial education and training.  So, that’s just one course to consider for a beginning real estate investor. If you’ve got to work a day job before you build your empire anyway, it might as well align with what you’re truly MORE interested in long-term … yes, perhaps … even if you need to take a short-term pay hit. It’s just another angle for you to consider, Jackie. If you want one all-encompassing podcast episode that tells a beginner like you as much as you need to know as possible … all in less than one hour - check out GRE Episode 249, published just a few months ago.    That episode is titled, “The Beginner’s Real Estate Investing Audio Guide” and it’s our most popular episode that I’ve done ALL year. Again, it’s Episode 249.    Thanks for the question, Jackie.   The next question comes from Tate in Providence, Rhode Island.   Tate says, “Keith, I notice that today, more providers offer new construction investment property, but it usually doesn’t cash flow like existing properties do.   Is it worth buying new construction for the lower maintenance costs involved?” Thanks, Tate.   Alright Tate, let’s compare the pros & cons of buying Brand New Construction Rental Property vs. Existing Construction.    And, this is a top-of-mind subject for me because I just wrote about this in Get Rich Education’s e-mail newsletter two weeks ago.    What’s better: existing or new construction rental property?   Like with most real estate answers: “It depends.”   But because a “2-word answer” like “It depents” is really dissatisfying, let’s expand on this.    There are at least 8 different criteria for each type.   Before we look at your trade-offs with each type, understand that new construction turnkey property was almost non-existent until recently.   That’s because during the housing crisis of 2007 – 2010, home prices fell far below replacement cost.   Therefore, builders couldn’t make new developments feasible until existing property prices rose in this decade that we’ve had since the Great Recession.   There was also an oversupply of housing back then. Absorption of existing housing took time before new construction made sense again.   And supply has definitely been absorbed.   In SO MANY markets today, the housing that makes the best rentals is undersupplied.   That’s why new construction makes sense again - and why you’ve gradually seen more new construction income property be offered by providers these past few years.   Let’s look at the advantages of both existing and new construction … and these are certainly broad generalizations ...   First, with EXISTING Construction property - we’re talking seasoned properties here:   Lower purchase price.   Better cash flow. This is especially true in the early years. The early dollars are your most important as an investor.   Established property. You’re pretty assured that the foundation won’t settle. You know that the topsoil grows grass.   With EXISTING property, you’re in an established neighborhood. You already know who the neighbors are.   More safety in your investment with existing property. You see, because residents have lived in established neighborhoods longer, they’re more likely to have substantial equity in their property.   Now, why would you care if your neighbors next to your income property hold higher equity positions?   If there’s a recession, this means that residents are less likely to walk away from their home. This hedges against foreclosures and a valuation downdrain - and this domino effect like we saw in the housing crisis 10 years ago.   With EXISTING PROPERTY, you also have lower property taxes. Though there are also plenty of cases where this isn’t true, because an existing property could also mean it’s closer to the city center.   Location. Because you’re often closer to parks and city centers … residents have shorter commute times. This aids in both attracting & retaining your tenant.   Availability. In turnkey investment property, there are more existing structures available than new construction property.   You can keep your timeline. Construction delays are less likely with existing property.   Now that we’ve looked at what tilts in the favor of existing property - and it is a lot … let’s look at the advantages of Brand New Construction property.   New Construction:   You tend to get Better appreciation.   Higher tenant quality. New features attract a larger tenant pool for you to choose from.   Longer duration tenancies. It’s hard for a tenant to find a better situation, unless they leave to become a homeowner.   You tend to have fewer maintenance costs with new construction property.   Modern amenities. Layouts with open floor plans and a higher bathroom count.   With new construction you often have lower property insurance costs.   Better vendor warranties.   Utilities. New homes are more energy efficient, lowering utility bills. However, the tenant often pays this for you, especially in single-family homes and duplexes.   So, there they are - the advantages of existing property vs. new construction rental property.   Of course, this is general guidance.   Based on regional and other factors, you can surely find some “exceptions” to these criteria.   But these trade-offs can help you decide what’s more important to you as a real estate investor.   Excellent question from you there, Tate.   The next question comes from Alex in Lyndhurst, New Jersey.   Alex asks, “What’s the best resource for determining if a property that I want is in an up-and-coming neighborhood?”   “The market is more important than the property - and a thriving metro doesn’t necessarily mean that every property is in the right neighborhood.   Where do you do your own research?”   Well, thanks for the question, Alex.   In short, NeighborhoodScout.com is my favorite paid resource …   … and City-Data is my favorite free resource. It’s spelled “City-hyphen-Data”.com   Now, what makes Neighborhood Scout potentially worth paying for is that they’ve got investor-grade analytics and tools.   Where the free resource, CityData is more for a “general public” user.   But both resources tell you about things like crime rate, per capita income, vacancy rates, and virtually everything else for cities, zip codes, and even subdivisions.   Of course, there are countless other resources in addition to those two.    Be mindful that you aren’t just looking for neighborhoods that are safe, you’re looking for neighborhoods that are IMPROVING and both of these resources have backward-looking data so that you can track trends.   Remember, in income property, you don’t really want to seek out “beautiful” because beautiful often doesn’t correlate with profitable for cash flow.   But, of course, boarded-up, burnt-out buildings aren’t what you want to see either.   So, as you’ll remember, it’s clean, safe, affordable, and functional. Are people out walking their pets at night? That might be a sign of neighborhood safety.   The things that you can see through Google Street view are things like: are the streets relatively clean, are people mowing their lawns.    If the neighborhood - at least looks - respectable … then tenants are likely respecting your property too.   Too many “For Rent” or “For Sale” signs on a block might be bad sign.    Of course, seeing a lot of signals of remodeling or new construction in a neighborhood - is one of the best signs that could possibly see for an improving neighbhorhood.   The problem there - is that you’ve got to get in before a neighborhood is TOO improved. Otherwise, you’re going to be paying more for the property and the numbers won’t work.    So, there you go, Alex - both some hard data resources for research - and softer signals for what might make for an up-and-coming neighborhood and a safe neighborhood.   If you’ve got a question for me, go ahead and write in at info@getricheducation.com   How do you raise the rent without losing your tenant, and then, what happens if there’s a real estate recession?   That’s after this. I’m Keith Weinhold. You’re listening to Get Rich Education.  _________________________   **COMMERCIALS** ___________________________   You’re listening to the show where you don’t follow money, you make money follow you.    This is Get Rich Education. I’m your host Keith Weinhold.   Ben from Osnabrook, Germany asks:   “When it comes to raising the rent on a tenant, isn’t it better to just keep the rent the same & just … not raise it?   Because the cost of losing that tenant with its greater vacancy time is usually more of a loss than if I’m not receiving that potentially higher rent amount each month.”   And then Ben goes into a number of calculations that show his point.   Yeah, thanks for this great question, Ben.   This is the classic landlord’s conundrum.    Do I raise the rent to “market rent” & risk losing the tenant - or do I forgo that greater rent amount and just remain complacent with occupancy at a BELOW-market rent amount? Let’s use an example here. Say you are renting a unit for $1,000. The tenant signs a one year lease for $1,000 … and after a year, when renewal time comes, you give notice that rent will be increasing from $1,000 to $1,040. A couple days later, your resident responds and tells you that they aren’t willing to pay more than $1,000, and if they must, they will go find another place to live. So you risk losing them. Yes, some tenants really will leave over just a $40 a month rent increase. Now you have a dilemma. You think that you CAN rent the unit to someone ELSE for $1,040.  But on the other hand, you realize that it’ll take a month to turnover and re-rent the unit. You’ll also need to see that the carpets are cleaned, the blinds are replaced, and perhaps do some wall texturing and painting.  So RE-renting this unit will cost you something … plus while this work is done & a new tenant would have to be sought … it might be one month of vacancy that you’d endure.  The question you’re now asking yourself is, will it cost me MORE to turn this unit over & EVENTUALLY get $1,040 than it would to keep this tenant’s rent at $1,000 … and just keep them in place - ? Yes, it usually would.  Numbers-wise, short-term, it’s better to just keep that existing tenant in-place and give them their way and keep the rent at $1,000. In this case, a LOST month of rent while you try to find a new tenant then … effectively costs you ... $1,040.  Plus repairs, you might lose $1,600 on the turnover.  On the other hand, NOT raising rents by this $40/month will only cost $480 for the year. Which loss would your rather take — $1,600 by turning the unit over - or $480 by keeping the same tenant there?  You’d rather keep the tenant in there & only lose that $40 a month or $480 a year … rather than the $1,600 for the turnover & month of vacancy. Well, there’s a solution to this classic conundrum - and it won’t work every time, but the best thing that you can probably do - the way that you can have your cake and eat it too - which means both increase the rent and keep your tenant … is to make an improvement to your resident’s unit a month or two BEFORE you raise the rent. For example, if they don’t have a dishwasher, you can add a dishwasher or add a ceiling fan in the master bedroom if they don’t have one. Or make a minor remodel that makes that tenant’s life better - before the notice of rent increase. That makes the tenant more likely to stay because you’ve just improved their quality of life - and you’ve also shown them that you care - and they’re more likely to pay the rent increase. Not only have you then kept the tenant and now receive a greater rent amount, often times, you can get a tax deduction for the repair or improvement - and above that, even if they do decide to vacate, you just improved your unit that you own. So … that’s the best solution to the dilemma, Ben from Germany. Again the short answer is to make an improvement to the unit, optimally a month or two before the rent increase.  Craig from San Diego, California writes, “Keith, you are the first person that ever opened me up to the world of cash flow. I’ve bought two single-family properties from one of your providers about 8 months ago and I’ve had a good experience so far, other than one tenant that paid the rent about 20 days late month.” OK, so far, so f-a-i-r-l-y good there, Craig from San Diego. Craig goes on to ask, “There are a lot of warning signs about a recession and I’m considering putting a freeze on new purchases until I at least have some certainly in this uncertain environment. What are your thoughts about a recession?”  OK, that’s certainly a valid question, Craig.  You bring up “uncertainty”. I’d say that markets are always, just always, uncertain … and prognosticators and forecasters have been calling for a downturn for 3 years, 4 years, including a prominent economist or two right here on this very show. And that’s alright. That’s alright if there’s someone that’s wrong. A prominent economist’s decision is just one point of many that you have to take into consideration …  … whether it’s an inverted yield curve or slowing GDP growth or inflated stock market price-to-earnings ratios that might point to a recession. Well, especially as it relates to real estate - let’s just talk about how a recession might look as it relates to real estate and what the probabilities are of a recession taking place soon.    First of all, a recession is broadly defined as having two or more quarters in a row of contracting Gross Domestic Product - said another way, a declining GDP for at least six months. That’s what a recession is. Let’s relate a recession to real estate - broadly. 10 years ago, we were mired in the worst recession in a few generations.  Real estate was: #1 - Overbuilt & oversupplied. #2 - Real estate was being bought with irresponsible lending practices where borrowers didn’t have the capacity to pay their mortgages if anything went wrong. Everyone was qualifying for a loan. And #3 - Ten years ago in the Great Recession, we saw ridiculously unsustainable appreciation rates. 20%, 40%, 50%, 60% per year in some markets on this speculative appreciation since anyone could qualify for a loan. Today, I don’t think we’re in position for a real estate recession & if we do have one, it would be substantially milder than what we saw 10 years ago. Why is that? Because today, we’re in EXACTLY the opposite condition than we were 10 years ago. Today, we have an UNDERsupply of housing, lending practices ARE responsible, and appreciation rates are sustainable.  I talked at the top of the show that real estate has appreciated nationally at about 3-and-a-half percent. So, we’re in the opposite place that we were 10 years ago for three main reasons: supply, lending responsibility, and sustainable appreciation rates. In fact, if you’re buying for cash flow in good markets - like you should be - the question I’d ask you - uh, Craig from San Diego - is - do you WANT there to be a mild recession? Yeah, if housing values began trending down for a little while, people are discouraged from buying and then there’s more rental demand.    This is what I experienced when I owned property for cash flow, like I did 10 years ago - when rental demand increased - my cash flow increased greater than the rate of inflation.   So, you might WANT there to be a mild recession when you’re a cash flow buyer.    In fact, this - kind of - workforce housing that we talk about buying here - long-term rentals that are just below the median purchase price for an area (but not too far below) - is some of the most recession-resilient housing type that you can find.    Now, other housing types - take the SHORT-term rental market - like AirBnB properties, HomeAway, VRBOs - they aren’t nearly as recession-resistant as these long-term rentals are.   Now, that doesn’t mean that you can’t own a few STRs - but they probably should be the bread-and-butter mainstay of your portfolio like these long-term rentals are.   AirBnB properties cater to two primary types of people - businesspeople and vacationers.   Now, it seems that most AirBnB owners prefer businesspeople to vacationers … because businesspeople tend to be more quiet, they don’t have parties, and businesspeople are more likely to have REPEAT stays than vacationers.   But in a recession, both business travel and vacation travel gets cut. You saw that happen in the Great Recession - and business travel is one of the first places that businesses cut when they had to get lean.   So … this doesn’t always mean that short-term rentals are dreadful. But long-term rentals are what are recession-resistant.   Again, in long-term rentals, you might actually WANT a recession depending on how you’re positioned.    So, thanks for the question there, Craig.   Next week on the show, we’re going to focus on four-plexes - four-unit buildings and what makes them so special.    The week after that, speaking of a recession, the incomparable Economist Richard Duncan is going to join us and tell us about this QE4-type of activity that the Fed has initiated …   … where the Fed is printing all kinds of money and pumping it into the system … and what that means for the economy.   Richard can make complex concepts sound devastatingly simple sometimes.   In fact, when he was here with us, about a year-and-a-half-ago, just listen into part of that, my question and his answer:   Yeah, could anyone else possibly describe the relationship between inflation and interest rates that succinctly … that concisely?    In fact, when he’s back with us soon, I think that Richard will tell you that nearly the entire globe is ALREADY in a substantial economic slowdown.   Well, what’s one way that I’m acting - and this is something that I regularly do whether I think that a recession is on the way or not - is that I just bought two more properties this past week myself.   Yes, they’re these cash-flowing, long-term rentals like we talk about here … eating my own cooking.   When I was almost ready to buy, I qualified for two more single-family income property loans with Ridge Lending Group.   And then to find the 2 new properties, I did just what you do.    I went to GREturnkey.com, downloaded reports on a couple markets that I was interested in, connected with the provider, and decided to buy two properties in the same day.   Really, walking the walk here. So, if you’re looking for cash-flowing income property in investor-advantaged markets - usually in the Midwest and South, you’ve got to act.    That starts at GREturnkey.com   Until next week, when I’ll be back to help you build your wealth, I’m Keith Weinhold.    Don’t Quit Your Daydream!
October 28, 2019
Grant Cardone is our guest today. He’s the world’s #1 sales trainer, 10X Movement Leader, and prominent real estate investor with $1.4B AUM. We discuss wealth mindset, and the importance of “getting known”.  We tell you why you must embrace good debt in order to build wealth. You start by asking yourself better questions. What is “10X”? I liken how your tenant pays you their income from the first 10 days of every month. Get Grant’s take on why a house is not an asset. I ask Grant about his physical fitness. Bottom line: You must give your money multiple jobs.  1) My FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: Cardone Capital: CardoneCapital.com Cardone Capital Free Book: CardoneCapital.com/Book Mortgage Loans: RidgeLendingGroup.com Turnkey Real Estate: NoradaRealEstate.com eQRP: Text “QRP” to 72000 or: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation
October 21, 2019
Fannie Mae and Freddie Mac privatization could mean that the 30-year fixed amortizing loan - America’s favorite - disappears. Ridge Lending Group President Caeli Ridge & I discuss this and more. I describe the difference between primary and secondary mortgage markets. Mortgage interest rates have dropped more than 1% year-over-year. Learn what it takes for you to qualify for an income property loan today: down payment, credit score, reserves, and debt-to-income ratio. You can put 15%, 20%, or 25% down payment on an income SFH. We discuss the differences. 1) My FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: Mortgage Loans: RidgeLendingGroup.com Wall Street Journal: How Fannie & Freddie Work MarketWatch: FICO Scores Higher Turnkey Real Estate: NoradaRealEstate.com eQRP: Text “QRP” to 72000 or: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation
October 14, 2019
Alabama might be the top real estate investment state in the U.S.  Why? Low cost properties, low tax, landlord-friendly, growth, warm weather, and advantageous rent-to-value ratios. For cash flowing property, start at: GetRichEducation.com/Birmingham and GetRichEducation.com/Huntsville. Birmingham is Alabama’s largest urban area, Huntsville is 2nd.  SFH prices: $85K - $125K. Fees and volatility degrade your stock and mutual fund returns more than most think.  Want more wealth? 1) My FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: Birmingham Turnkey Property:  GetRichEducation.com/Birmingham Huntsville Turnkey Property: GetRichEducation.com/Huntsville Tony Robbins’ book: Unshakable Mortgage Loans: RidgeLendingGroup.com Turnkey Real Estate: NoradaRealEstate.com eQRP: Text “QRP” to 72000 or: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation
October 7, 2019
The first episode of one of America’s most influential investing shows began October 10th, 2014.  Here it is - uncut with gaffes, breathing and bumping the microphone. Host Keith Weinhold gives present-day commentary on this show that launched five years ago from his home’s dining room table. Want more wealth? 1) My FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: Mortgage Loans: RidgeLendingGroup.com Turnkey Real Estate: NoradaRealEstate.com eQRP: Text “QRP” to 72000 or: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation
September 30, 2019
$10 million in debt could BENEFIT you. I describe how. There are more “free-and-clear” homes today than in 2006. I tell you why.  A major platform published that 30-year mortgages are better than 15-year. It appears terribly oversimplified. Home equity always has zero ROI. The debt decamillionaire can have a $300K annual tailwind from inflation-profiting alone. How to get informed, not affirmed. Then, Daren Blomquist joins us to discuss U.S. housing trends. The homeownership rate has declined, especially among those under age 35. The rental vacancy rate has plummeted to 6.8%.   Market appreciation is cooling in a sustainable way, returning to long-term norms. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: 30-Year vs. 15-Year Mortgages: Business Insider My Forbes article: Why Home Equity Has Zero Return Auction.com GRE’s Tampa Field Trip: RealEstateFieldTrip.com Mortgage Loans: RidgeLendingGroup.com Turnkey Real Estate: NoradaRealEstate.com eQRP: Text “QRP” to 72000 or: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation The NFL on CBS: www.cbs.com
September 23, 2019
Turnkey real estate vs. syndication compared. Cannabis production is like today’s gold rush in agricultural real estate and retail. CBD is medical cannabis. THC is recreational, mind-altering cannabis. CBD is discussed today. CBD sales growth is projected at 107% every year through 2023. Get a predictable 15% Cash-On-Cash Return by making a loan on equipment that turns raw hemp into CBD oil. Learn more here.  You must be an accredited investor, 12-month loan term. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: CBD Lending Opportunity For You: GetRichEducation.com/Lending CBD To Grow 107% Annually Mortgage Loans: RidgeLendingGroup.com Turnkey Real Estate: NoradaRealEstate.com eQRP: Text “QRP” to 72000 or: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation
September 16, 2019
Single-family rentals have 16 advantages over apartments:  Tenant quality, appreciation, neighborhood, school district, retention, no common areas, utilities, divisibility, fire, disturbances, financing terms, vacancy rate, management, supply & demand, risk, exit strategy.   There's nothing wrong with apartment investing. They have their own advantages. Noel Christopher, Senior VP of Portfolio Services at Renters Warehouse, joins Keith to discuss today’s single-family rental (SFR) market.  Renters Warehouse manages 22,000+ homes in 25 states. They could be a good backup property manager for you. See their marketplace too.  The midsize investor (owns 25 - 2,000 rental units) is becoming more involved in buying SFRs. Many say “mom-and-pop” landlords are competing with first-time homebuyers for single-families. Noel disagrees. Long-distance investing is more common today. Demographics of SFR tenants - both Baby Boomers and Millennials.  Also discussed: beginner tips, build-to-rent communities. Keith brings you today’s show from Anchorage, AK.  Next week: Canton, OH.  The following week: Philadelphia, PA.  The week after: St. Petersburg, FL.  __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: RentersWarehouse.com GRE’s Tampa Field Trip: RealEstateFieldTrip.com Warren Buffett on CNBC Mortgage Loans: RidgeLendingGroup.com Turnkey Real Estate: NoradaRealEstate.com eQRP: Text “QRP” to 72000 or: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation
September 9, 2019
Five benefits of spending your money are discussed. (What? Is this irresponsible?) Keith Weinhold tackles the rarely-discussed benefits of money-spending: You beat inflation. You don’t “lose” money; you spent it how you desired. Ensure a better quality of life. You help the economy exactly where you want to. Spending is more fun than saving.   Many are afraid to discuss the topic of spending. Also discussed - what goes into home price appreciation, how inflation persists despite decades of technology, Millennials waiting for home prices to drop. Back to spending: Are “cheap” people annoying?  School is irrelevant to wealth. Don’t cut expenses; increase income. The only place you get money is from other people. Buy top vacations, wellness & exercise, mattress, vision, shoes, dental, home renovation, unprocessed food, phone. Spending is an investment in yourself. Experiences vs. Stuff. Money is fuel; it’s only potential. The $25,000 taco. Giving to charity.   Benjamin Franklin: “Wealth is not his that has it, but his that enjoys it.”  Then, a discussion with our Tampa provider about finding the right rental property neighborhood.  Join us on our upcoming Tampa Real Field Trip, Oct. 10th to 12th. Start at RealEstateFieldTrip.com.  __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: GRE’s Tampa Field Trip: RealEstateFieldTrip.com CNBC: The $25,000 Taco Mortgage Loans: RidgeLendingGroup.com Turnkey Real Estate: NoradaRealEstate.com eQRP: Text “QRP” to 72000 or: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation
September 2, 2019
Real estate math is simple: add, subtract, multiply, divide. There’s no complex math like trigonometry, algebra or exponents. Frank Gallinelli, Ivy League Professor of Real Estate Development at Columbia University in New York City, joins me to talk real estate numbers. Net Operating Income (NOI) estimates current market value of a property. NOI is rent minus VIMTUM. It does not include Principal and Interest. Your Debt Coverage Ratio (DCR) had better be greater than 1. You typically need a minimum of 1.2 to 1.25 to qualify for a property. Loan-To-Value ratio discussed. Seller “asking price” is almost irrelevant. A property’s current market value is = Annual NOI / Cap Rate. Cap Rate = Annual NOI / Property Price or Value. Internal Rate Of Return (IRR) is more of a total return. Part of it is discounting your future cash flows. This considers your opportunity cost. I give an example of buying a new $20,000 heating system for an apartment building.  This resulted in lower heating bills.  This increased cash flow (and NOI) by $4,800 annually.  Divide this by a 7% Cap Rate = $68,500 value increase. Therefore, a $20K investment both improved cash flow and increased building value by $68,500.   I dislike GRM - Gross Rent Multiplier. Franks dislikes CCR - Cash-On-Cash Return.  Return On Equity vs. Return From Equity. Don’t get too lost in numbers. No property exists in a vacuum. The vibrancy of the market is more important than the property. Get a 30% discount on Frank Gallinelli’s “Introduction To Real Estate Analysis” video course at learn.realdata.com with Discount Code: SAVE30 __________________   Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: Frank Gallinelli’s “Introduction To Real Estate Analysis” video course: learn.realdata.com  Use Promo Code SAVE30 for 30% off. GRE’s Tampa Field Trip: RealEstateFieldTrip.com Mortgage Loans: RidgeLendingGroup.com Turnkey Real Estate: NoradaRealEstate.com eQRP: Text “QRP” to 72000 or: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation
August 26, 2019
Keith Weinhold says the word of this real estate era may be: “supply”. Why? The U.S. just hit its lowest rental vacancy rate in 35 years: 6.8%.  Also, the U.S. just hit its lowest homeowner vacancy rate in 40 years: 1.3%. Mortgage interest rates just fell to near three-year lows. U.S. existing median SFHs now a record $279,600.  Year-over-year appreciation is 4.3%. Regulation and environmentalism increase real estate prices. Join our Tampa Real Estate Field Trip at RealEstateFieldTrip.com Next, Daren Blomquist of Auction.com joins Keith to discuss current U.S. trends in: Foreclosure activity. Home price appreciation. Migration trends. Foreclosure activity is down due to high employment, more exotic loans now “rooted out of the system”. 91-92% of metros Daren studied are appreciating in value. Net migration winners include: Florida, Texas, Tennessee, The Carolinas, Georgia, Washington, Arizona, Nevada, Colorado.  Net migration losers include: New York, California, Illinois, Louisiana. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: Daren Blomquist: Auction.com Heat Map: Home Appreciation  Heat Map: Net Population Migration GRE’s Tampa Field Trip: RealEstateFieldTrip.com Mortgage Loans: RidgeLendingGroup.com Turnkey Real Estate: NoradaRealEstate.com eQRP: Text “QRP” to 72000 or: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation
August 19, 2019
If I pay you $114 an hour to mow my lawn, could you get wealthy that way? No. You’d have to work all 8,760 hours in a year just to make your first million. Invest. The definition of investing is: “To expend money with the expectation of achieving a profit.” Then, are stocks, bonds, gold, your home, vacations, or income properties … investments? I discuss. Damion Lupo, expert eQRP Administrator, joins us. Learn more by texting “QRP” in ALL CAPS to 72000. You can have five simultaneous profit centers with income property: Leveraged Appreciation. Cash Flow. Return On Amortization. Tax Benefit. Inflation-Profiting. To get ahead, you must give your money multiple jobs. That’s five in this case. If you’re new to this: risk and frustration still exist in real estate. Your best-laid plans will be derailed sometimes. It’s not “get rich quick”. But most people never acquire wealth at all. Why switch your retirement plan to an eQRP? $55,000 annual contribution limit for single, $110,000 for married couples. Invest in real estate, hard assets, nearly anything. Creditor protection. eQRP setup has less red tape setup than SDIRAs. $50,000 line of credit. Avoid UBIT tax.  Learn more about the eQRP from Total Control Financial by texting “QRP” in ALL CAPS to 72000. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: eQRP: Text “QRP” to 72000 or: TotalControlFinancial.com Mortgage Loans: RidgeLendingGroup.com Turnkey Real Estate: NoradaRealEstate.com JWB New Construction Turnkey: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold
August 12, 2019
Jim Rickards is our guest today. Debt is growing faster than the economy.  In an eventual financial crisis, we discuss how a real estate investor will fare.  A prolific author, Aftermath is Jim Rickards’ new book. Debt, inflation, and interest rates are macroeconomic forces that affect you daily.  The U.S. has $23 trillion in debt. Why can’t we just keep kicking the “debt can” down the road? Alexander Hamilton effectively created the debt 230 years ago. When the debt-to-GDP ratio exceeds 90%, problems occur. It’s 103% in the U.S. today. We discuss debt solutions, and why negative interest rates and Trump tax cuts won’t work. Rickards says inflation has nothing to do with money supply; it’s about psychology. Learn how a new international monetary system looks - outside the U.S. dollar. In a new system, hard assets retain value. Stocks and bonds lose substantial value. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: Book - Amazon: Aftermath by Jim Rickards National Debt Clock Mortgage Loans: RidgeLendingGroup.com Turnkey Real Estate: NoradaRealEstate.com QRP: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold
August 5, 2019
Imagine that you’re paid $8.5 million - your entire life’s earnings - all on the last day of your life. But you received nothing until then. That income really wouldn’t serve you well anymore. It’s an extreme example about “The Power Of Now”.  Delayed gratification should not be a long-term condition. You get one life. I also discuss housing affordability: which is your income, housing prices, and mortgage interest rates. Historically, affordable homes have a price-to-income ratio of 2.6 or less. In just three minutes time, I tell you how the Federal Reserve works. Their ¼% interest rate cut announced last week is the first cut since 2008.  Join me in-person on our Tampa Real Estate Field Trip. Register at www.RealEstateFieldTrip.com The Phillips Curve signifies that employment and inflation are highly correlated. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: GRE’s Tampa Real Estate Field Trip: RealEstateFieldTrip.com Article & Video by Keith Weinhold: How “The Fed Works” In 3 Minutes Book: Eckhart Tolle “The Power Of Now” Affordability article: Housing Wire Mortgage Loans: RidgeLendingGroup.com Turnkey Real Estate: NoradaRealEstate.com QRP: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold
July 29, 2019
Floating ocean nations can provide solutions to rising sea levels, overpopulation, and poor governance.  It’s known as “seasteading”.   Joe Quirk of The Seasteading Institute describes their plans and structure. The institute was co-founded by well-known venture capitalist Peter Theil. This differs from living on a boat or oil platform, or cruise ship life. 200 miles offshore is the exclusive economic zone. Hurricanes, tsunamis. A new environment for enterprise and innovation. Seeking freedom and liberty. Aquaculture - seaweed, algae farming. Regulation by the free market rather than government. Could security evolve into an army?  Today’s seasteading population. Cryptocurrency. How far we are from a seastead nation? __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: The Seasteading Institute: Seasteading.org Blue 21 Floating Homes: www.blue21.nl/ GRE’s Tampa Real Estate Field Trip: RealEstateFieldTrip.com Mortgage Loans: RidgeLendingGroup.com Turnkey Real Estate: NoradaRealEstate.com QRP: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold
July 22, 2019
Tenant retention begins before move-in:  Use a move-in checklist with the tenant. Move-in gift and packet. Communication.   Ongoing tenant retention during occupancy: Inspections every six months. Be attentive with service calls.   How to achieve a rent increase: 45 days’ notice. Use phone. Substantive reason: increase in property tax or maintenance costs.  Remind tenant of moving costs. Offer an upgrade - carpet cleaning, ceiling fan, etc. 2 - 5% annual increase typical.   We discuss why not every tenant is worth retaining.  Dayton, OH has 1% rent-to-price ratios and an MSA population of 800,000. Also: Proximous to Cincinnati and Columbus.  Health care. Military. Manufacturing. 3 Amazon fulfillment centers within 45 minutes.   Learn more about the Dayton turnkey provider here.  In-house property management. Use luxury vinyl plank, white kitchen cabinets, newer HVAC & water heaters. 1-year and 3-year warranties. 97% occupancy rate. Leases up to 18 months. 3/1 SFHs: Rents $750 - $1,300 | Purchase prices $75K - $120K. Detached garage. 800 - 2,000 sf. Usable basement is additional sf. Property tax 1.8 - 2.1% annually as a percent of property value. Rent promise: Provider starts paying rent to you if your property is vacant 30+ days. __________________  Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: Dayton Turnkey Property: GetRichEducation.com/Dayton Mortgage Loans: RidgeLendingGroup.com Turnkey Real Estate: NoradaRealEstate.com QRP: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Our Tampa Real Estate Field Trip: RealEstateFieldTrip.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold
July 15, 2019
Two big mistakes are: 1) Renting out your former primary residence. 2) Only being invested in one market.  This Beginner’s Real Estate Investing Audio Guide also helps you step-by-step with buying an income property: Credit Scoring Mortgage Pre-Approval Writing An Offer Inspection Vetting A Property Manager Appraisal Insurance Closing LLCs  **The entire audio from this episode is transcribed into words and can be found at the end.** People set up LLCs for asset protection, anonymity, or tax purposes. But there is a lot of administrative work. Is it even worth setting up? Your FICO credit score has five ingredients. Down payment, debt-to-income ratio covered. Mortgage pre-approval is better than pre-qualification. Select income property in: job-growth economies, high rent in proportion to low purchase price. Cash flow = Rent Income minus “VIMTUM”. Why would someone sell you a cash-flowing property? “Turnkey” defined. Should you make a lowball offer to a turnkey provider? Also discussed: Negotiation Strategy, Earnest Money, Purchase Contracts, Management Fees, Management Agreements, Mobile Notary, Title Company, Rent-To-Value Ratio, Collecting Cash Flow. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: Mortgage Loans: RidgeLendingGroup.com Find Properties: GREturnkey.com Memphis & Little Rock Property: MidSouthHomeBuyers.com Turnkey Real Estate: NoradaRealEstate.com QRP: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Our Tampa Real Estate Field Trip: RealEstateFieldTrip.com Best Financial Education: GetRichEducation.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold     Complete Audio Transcript:   Welcome to Get Rich Education. I’m your host Keith Weinhold and I’m here to help Beginning Real Estate Investors Today.  The biggest beginner mistakes to avoid, when you make an offer - can you lowball a turnkey provider, and all those buyer steps like LLCs, mortgage pre-approval, inspection, appraisal, and closing. Today, on Get Rich Education. _____________________ Welcome to GRE. This is Get Rich Education Episode 249 - and this is your Beginner’s Real Estate Investing Audio Guide. Hi, I’m your host Keith Weinhold. We’re talking about how to get into long-term buy & hold RE investing - and that’s because it’s the most generationally-proven way to build wealth. First, let’s talk about a couple of the biggest mistakes that real estate investors make - it’s being invested in only one geographic market. Often, that’s the market that they just happen to live in.  There is more risk with being in only one market than most realize, because you’re now tied to the fortunes or misfortunes of just one area’s economy. Another substantial, common real estate investor mistake is that they continue to hold onto one - I’ll call it - special - property in their portfolio that they usually need to get rid of - but they have either sentimental ties to it - or they just hold onto it for convenience, and do you know what that property is? I’m actually talking about a specific property here. It’s the home that THEY YOU USED TO LIVE IN yourself. Well, what’s wrong with renting out the home that you used to live in yourself?  You might still have the preferable owner-occupied financing locked in on that one - and afterall, that’s a better rate than you could get on a non-owner-occupied rental. The problem is that the property probably doesn’t perform BEST as a rental. But you might be clearing, say $500 per month by using your former primary residence as a rental today.  Look, for you, it’s often about the cash flow - and yes, it is about the cash flow.  But there’s something even more important than cash flow - that’s because nearly any property will cash flow if the loan were paid off. That’s why it’s really more specifically about the rent-to-value ratio of a property. If you’re renting out the home that you used to live in, and it wasn’t strategically bought as a rental, if your rent-to-value ratio (or RV ratio) is 0.6%, meaning that for every $100K in value it has, you’re only getting $600 of monthly rent income, then you’re losing cash flow dollars every year - and every month. Look, let’s give a real life example of the .6% RV ratio. Say that you can get $1,800 rent out of that $300K property that you used to live in.  But instead, three $100K homes bought strategically as rentals can have a combined rent income of $3,000. Yes, you can still find that full 1% rent-to-value ratio. So it’s either one $300K property at $1,800 of rent income. Or three $100K properties at $3,000 of rent income.  So you’re losing $1,200 dollars of cash flow every month - you’re only getting $1,800 rather than $3,000 - by not buying and owning strategically in markets in the Midwest and South where the properties make sense as a RENTAL on the day that you buy it. Your primary residence only made sense as a primary residence on the day that you bought it.  Now you can see that the only reason that you own it, is because you defaulted and “fell” into it. Don’t fall into things. Be intentional.  You are a better investor when you’re intentional rather than emotional. It’s even better for you now. Beyond your $1,200 of additional cash flow with some repositioning, now, with three properties instead of one - now you’ve also taken care of the first real estate investor mistake that I mentioned. WITH three rentals rather than one, now you can be diversified across multiple markets. Two birds are killed with one stone. Now with some re-positioning, you’ve increased your cash flow by $1,200, AND you’re in multiple markets. One property isn’t divisible. We’re talking about real estate investing for beginners today, so let me clearly guide you through step-by-step on just how you go about buying your first property - writing an offer, inspection and vetting your Property Manager which is known as due diligence, appraisal, and onto closing and receiving cash flow from the tenant. As you’ll see, much of today’s show pertains to any investment property at all. But we’re talking mostly about how to buy single-family turnkey homes, especially homes outside your home market - as most of the best deals are not found where you live. Like they say, the best investors live where they want to live, invest where the numbers make sense. Get Rich Education is heard in 188 world nations.  Today’s content is primarily geared toward United States real estate investors - but those that live outside the United States will benefit here too. Here’s a question that you might have - “How do I go about setting up an LLC - a Limited Liability Company - to hold my investment property in?”  I’ll tell you - I don’t think “How do I set up an LLC?” is the best question to ask. The best question to ask is, “Should I set up an LLC?”  The three main reasons people set up an LLC are for either anonymity, tax purposes, or asset protection. Now, if you know that you WANT to set up an LLC - I’ve done three episodes on that topic with Rich Dad Legal Advisor Garrett Sutton. You can go to GetRichEducation.com, type “Garrett Sutton” in the search bar, and those three episode numbers will appear so that you can listen. But the reason that the question is, “Should I even SET up an LLC?” is because: Setup of LLCs complicates your life. Maintaining a registered agent, Articles Of Incorporation, having separate accounts, tracking expenses with separate credit cards, paying annual fees for everything - depending on how many LLCs you have and how you structure your life - it can wear you out.   The second reason you should ask yourself, “Should I even set up an LLC?” is because you might not have many assets for a litigant to go after. Retirement accounts have certain protections already. Equity in a property could be low-hanging fruit for a plaintiff attorney if someone gets a judgement against you. But since the Return From Equity is always zero, what would you have much equity in a property anyway?   The third reason you should ask yourself, “Why should I even set up an LLC?” is that frivolous or slip-and-fall type of lawsuits are rare. Not only have I never been a party to one, I’ve never even heard of any investor friend or associate having one - and I talk to a lot of people. You probably haven’t heard of one either.   Now, note that I’m not saying you can’t get an LLC or shouldn’t get one. I’m saying, prioritize those questions to yourself. First, it’s “Should I get one?”. If that’s a definitive “yes”, only THEN ask: “How do I set one up?” Why do you think you have to? Did some attorney use fear tactics to get you to? If the result of the LLC’s administrative overburden provides a greater reward in the form of asset protection, anonymity, or tax benefit - which is typically a flow-through taxation type anyway, you might then … get an LLC. So, as a beginning real estate investor, understand that real estate is a credit-based asset - meaning it’s usually bought with a loan.  So let’s talk about getting your finances in order before you contact a lender or select an income property.  That begins with you having enough cash liquidated for a 20% down payment on the property - add about 4% for closing costs, depending on the state that you’re buying your property in - and on the lowest-priced property that’s still in a decent area of a low-cost city - which might be a $60,000 property … 24% of that then is about $14,000 that you’ll need. You should have some extra on top of that as reserves.  Now, let’s look at another part of your finances - your DTI - your debt-to-income ratio. It cannot exceed 43% to 45% - maybe up to 50% in some circumstances.  So if your monthly minimum debt payments - everywhere in your life - housing payment, minimum credit card payments, minimum car payment - if that sum is $5,000 and your gross monthly income is $10,000 - that’s a 50% DTI. You can’t exceed that. Of course, before a bank is willing to loan you money, they want to have a reasonable assurance that you aren’t weighed down with debt elsewhere because their fear factor goes up that they won’t get paid back. Next, let’s talk about your credit score. We dedicated an entire episode to this back in Episode 54. If you can remember back that far, Philip Tirone was here with us and you learned more about credit scores that you probably ever thought you would … … and he even went on to call the credit scoring system a total scam. He was quite opinionated - it was interesting and eye-opening, but ...  Playing within the scam here - as it might be.  There are many different credit scoring models, but the FICO Score - F-I-C-O - is a respected one that you’re probably going to see your mortgage lender use. It stands for Fair Isaac Company. Their credit scoring range is 300 - the worst, up to 850. 850 is essentially a perfect score. Importantly, 740 is the highest score that helps you here.  If you have a 782 or an 836, it doesn’t help you qualify for the loan or get you a lower mortgage interest rate or anything else.  740 is where you’re optimized.  Now, just a quick overview of FICO credit scoring ... There are five primary ingredients that make up your credit score. In order of importance, they are your payment history, amounts owed, length of your credit history, new credit, and finally credit mix.  That first one, Payment History, is the most heavily weighted one. It’s 35% of your score. As you might expect, the repayment of past debt is a major factor in the calculation of credit scores. It helps determine your future long-term payment behavior. Both revolving credit (i.e. credit cards) and installment loans (i.e. mortgage) are included in payment history calculations.  Although installment loans like mortgages take a bit more precedence over revolving credit - like credit cards.  This is why one of the best ways to improve or maintain a good score is to make consistent, on-time payments. The next way, your Amounts Owed – 30% This category is basically credit utilization or the percentage of available credit being used - or borrowed against. Credit score formulas “see” borrowers who constantly reach or exceed their credit limit as a potential risk. That is why it’s a good idea to keep low credit card balances and not overextend your credit utilization ratio. So if you’ve got just a $1,000 balance on a credit card with a $10,000 credit limit, that’s seen as a good ratio. You’re staying well within your limits then.  The third FICO credit score ingredient is the Length of your Credit History – 15% This factor is based on the length of time all credit accounts have been open. It also includes the timeframe since an account’s most recent transaction.  Newer credit users could have a more difficult time achieving a high score than those who have a long credit history. That’s because if you have a longer credit history, FICO has more data on which to base their payment history. The fourth of five FICO ingredients is your “Credit Mix” – Now we’re down to an ingredient only comprising 10% of your score. Credit mix just means that it helps your score if you have a combination of credit cards, retail accounts, installment loans, finance company accounts and mortgage loans.  Finally, “New Credit” makes up the last 10% of your FICO score. Don’t open too many new credit accounts in a short period of time. That signifies a greater risk to lenders – and that’s especially true for you if you’re a borrower with a short credit history.  And you sure don’t want to open up any new lines of credit, down the road when you’re in the qualification process for buying a new property unless you check with your Mortgage Loan officer first. Knowing what factors make up your FICO® Credit Score can help you qualify for more loans and get better mortgage interest rates. That’s the bottom line. This helps you get pre-qualifed or pre-approved with your Mortgage Lender. To get prequalified, you just need to provide some financial information to your mortgage lender, such as your income and the amount of savings and investments you have. Your lender will review this information and tell you how much they can lend you.  After pre-qualification, you can seek the higher-level status and that is getting pre-APPROVAL for credit. Pre-approval is better than pre-qualification. If you think about it, it makes sense. Qualifying for anything in life is not as good as getting approved for something - I suppose.  Pre-approval involves providing your more detailed financial documents - like W-2 statements, paycheck stubs, bank account statements, and your previous two years tax returns. This way, your lender can VERIFY your financial status and credit. Now that you’re pre-approved with a lender, you can focus on the market and property that you’re interested in.  RidgeLendingGroup.com is the mortgage lender that we recommend most often because they SPECIALIZE in income property. They don’t have any seasoning requirements. Seasoning means that the person selling YOU the property needs to have held onto it for a certain length of time - or the lender won’t finance the property for you. While you’re in the pre-approval process, you can be learning about a cash-flowing investment market.  You want to pick a geographic metro market that typically has low-cost properties, and high rent incomes in proportion to those low costs.  In fact, the market is more important than the property. Because your income comes from your tenant, and your tenant’s income comes from a job. So you typically don’t want to own much property in a town with 14,000 people that’s an outlying area - not part of a greater metro - where 1/3rd of the employment is tied to one tungsten factory or even one semiconductor manufacturer. Because now, too much of your income stream is tied to just one industry. You also don’t want to buy slummy property. Those tenants often don’t pay the rent. You also don’t want to buy the median-priced home or higher, because the numbers don’t work out. So you want that working class housing that’s just below the median price point for the area. If you’re not already confident about that and familiar with the right provider ...  We have information on the right market, with the right provider, with properties - and they’re typically in the MidWest and South - at GREturnkey.com.  So read a market report there. That’s good, pointed information. Most investors are interested in a property for the production of cash flow. That’s the margin by which your rent income exceeds all expenses. Rent income minus expenses should be a positive number. So that’s your monthly rent minus VIMTUM. V-I-M-T-U-M.  Vacancy, Insurance, Maintenance, Taxes, Utilities, and Management. I like easy ways to remember things and VIMTUM is an easy way to remember. So, you’re listening to the Beginner’s Real Estate Investing Audio Guide here as a regular episode of Get Rich Education. If you’re not a beginner & you’re still listening, it’s either a good review and you might even be learning some new things along the way yourself.  Including, should you ever lowball a turnkey provider and a negotiation approach that I have for that - in a few minutes.  But first, one reasonable beginner question is ...   “Now why would someone would want to sell me a cash-flowing property in the first place? Why would someone sell me a good thing that pays them every month that they could continue to hold onto for cash flow? If a property pays someone every month while they hold onto it - why in the heck would they sell it to me? OK, some seller out there has a golden goose that lays a golden egg every month, so why in the world would they give me an opportunity to buy the goose? Well, there are just so many reasons for selling cash-flowing property - yes, a ton of reasons for selling even a young, healthy goose that lays golden eggs every month & is expected to so for years. Well, a turnkey provider runs out of money too. They can’t buy all the properties themselves.  They’d prefer a lump sum payout when they sell this property, because their business model is to go pay all cash for another distressed property that they can fix up.  And if you think that they snatched up the good ones themselves a while ago - yeah, they probably did do some of that. In fact - I WANT them to have snatched up some good properties from their own market earlier. It shows me that they believe in what they sell. Now, other reasons that the - I guess general public seller might want to sell you a property is ... One reason is moving. Say that a family in City A owns a few mom-and-pop rental homes that they self-manage and they’re moving to City B in another state, they’ll often sell their income properties. Some people want to self-manage their property (often because they never explored their best-and-highest use, but anyway) & if they have to move to City B, they’ll sell the property rather than try to find a Property Manager in City A.  Another reason people sell cash-flowing property is that - even if someone is not moving, that person might be tired of the self-management hassle - but yet they don’t try professional management - because that person has the DIYer mentality - that soooo common do-it-yourself mindset. OK, most people just don’t take a strategic approach to real estate investing. Other reasons for people selling cash-flowing property are death, marriage, divorce, and all kinds of either joyous or tragic life milestones. If a husband-and-wife own rental properties but running & managing them was kind of the husband’s thing & the husband dies … the wife doesn’t know how to run the properties & she’s likely to sell rather than hire a Property Manager. People may sell their cash-flowing property in case of all kinds of emergencies - medical and otherwise - because they may need a quick lump of cash - instead of the steady stream of cash flow over time that just won’t work for them in their new situation. OK, most of those situations involve some sort of external life change for property sellers - a lot of them tragic. Well - here’s a personal one for you...  A few years ago, I sold two cash-flowing apartment buildings at the same time - well, those sales actually closed on consecutive days - so nearly the same time. Both of those cash-flowing apartment buildings that I sold were 100% occupied with tenants, I had competent management in place, and there were no deferred maintenance issues with the buildings. You want to know my reason for selling two nice golden apartment gooses that were steadily laying some nice golden eggs? OK...can you guess why?  Alright, fortunately I didn't have any distress or emergency in my life. ...oh, and also, I wanted to sell them fast too, I couldn’t let these two cash-flowing apartment buildings linger on the market for a while. I really wanted to get rid of them. I had no distress like those situations I mentioned earlier. So can you guess why I wanted to sell these long-producing golden gooses in a good job growth market that produced nice cash flow, nice golden eggs? I’ll tell you why. That's because I knew I could 1031 Exchange those two gooses for two even larger gooses. Now I won’t get into the 1031 here on a beginner episode.  But I replaced the two smaller apartment buildings with two larger apartment buildings that would produce even larger eggs if I did it with a quick timeline - and I could defer any tax on my profitable gain.  I found - I guess - two very fertile egg producers that were going to produce even more cash flow over time. So...I think you get the message here. To the buyers of my smaller apartment buildings, I appeared as a very motivated seller of cash-flowing property, even though I had no external stress in my life.  It was due to internal reasons that I wanted to sell...and it’s the internal drive to expand my income.  No shrinking thinking here at Get Rich Education. Now, when you’ve found a cash-flowing property that you want to buy, should you make a lowball offer to a turnkey provider? My definition of lowball here, is, a 10% discount.  We’ll say, that a provider is offering a property for $120,000 - then you’d make the offer for 10% less, which is $108,000. That’s a lowball. My answer is ...  No. That’s not going to work. In almost every instance, that’s too much of a discount and it’s going to eat their margin too much.  Depending on how it’s presented, a seller might even be less motivated to work with you if they get a lowball offer.  This company has a business to run and with a turnkey property, you’re typically paying for the convenience. You leveraged their systems of them delivering this product to you that’s already renovated, rehabilitated, tenanted, and under management.  Now, can you can knock off $1K-$2K? And say, offer the seller then - $118K or $119K for the $120,000 property. Yeah, that might work.  It sure wouldn’t be deemed some unreasonable request. But it’s good to at least provide a reason - some rationale - in asking for the discount. Let me give you some perspective on this negotiation too.  For every $1,000 less in a mortgage loan that you take out, how much do you think that saves you in a monthly payment? Did you ever figure out how much that saves you? Well, at a 5% interest rate on a 30-year loan, reducing your mortgage loan amount by $1,000 saves you … $5. Five bucks in a reduced payment.  For more perspective, keep in mind too, that once the seller accepts your offer - it’s only the first part of the negotiation. Later, it’s a negotiation with the inspection. We’ll discuss how to navigate THAT shortly. I’m Keith Weinhold. You’re listening to Get Rich Education. ________________   Welcome back to Get Rich Education. This is your Beginner’s Guide to Real Estate Investing. I’m your host, Keith Weinhold and we’re talking about buying an income-producing property.   That may or may not be a TURNKEY property - which just means that it’s already renovated, tenanted, and under management with a tenant on the day that you buy it.    Now, once your offer is accepted by the seller, I want to give you - really just a brief outline of what to expect next.    This isn’t intended to give you every step in exhaustive detail, but this is generally what comes next for United States real estate purchases, and custom varies somewhat from state-to-state.   So with that in mind, once the turnkey provider or seller accepts your purchase offer...   You need to send in your earnest money. Earnest money is not the down payment. It’s a smaller amount that shows good faith that you’re serious about your offer.    It’s often an amount of $5,000 or less and it shows the seller that you’re serious enough about buying the property that the seller has the confidence to take their property OFF the market and not show it to anyone else.   The seller should give you instructions on how to place your Earnest Money.    Now remember, your earnest money deposit is not going directly TO the seller, it is going to a third-party escrow account, and it is refundable to you in accordance with the terms of the contract you signed.   Your contract should have an estimated closing date in there. I want to emphasize that the key word there is “estimated”.    While it is important that all parties work towards closing by this date, between you and me - let’s just be realistic - the reality is that many transactions get delayed beyond the closing date in the contract for a variety of reasons on the seller side, sometimes having to do with construction or renovation delays.    If this happens, it is nothing to be worried about, just remain in touch with the seller and you can simply sign a contract extension if needed when the time comes.   As you are financing your property, be sure to keep getting your lender anything that they ask you for up so that they can keep processing your loan.    As your closing gets near, they will probably ask you for some updated information and have some final stipulations from the underwriter, so just remain in close touch with your lender and try to provide them what they need as swiftly as you can.   During most of this time where you’re under contract & even before you’re in-contract to buy the property, most of your relationship with your lender and seller is just sitting around, waiting for the next stage.    Once construction/renovation is completed on your property, I suggest that you order a professional home inspection before closing.    As the buyer, this is at your expense, but the home inspection is cheap insurance for you and it is an important part of your due diligence. It might cost you about $300 for a single-family turnkey income property.   A four-plex inspection might cost up toward $800.   When seeking an inspector - seek ASHI certification - that is American Society of Home Inspectors.   You’re looking for an inspector with a good reputation, licensed and bonded. It is good to look for a level of experience as well. The choice is really yours as the Buyer.   Your inspector points out deficiencies in what I’ll break into a few categories.    #1 is Major concerns – these are significantly defective, safety issues that require immediate repair. Often times, those things MUST be done in order for your lender to even finance the property so the seller is going to do those things for you. That might be adding a railing to a porch.   The second category are recommended repairs – So they’re recommended but not required. That might be adding some extra insulation in the attic.    The third category is “nice if it were done” - like a kitchen cabinet door that’s a little loose and doesn’t close snugly.   When you get your home inspection report back because the inspector has compiled their findings, the key to remember is that the inspector will ALWAYS return a (usually long) list of items that they recommend be corrected prior to closing.    Now, this even happens on new construction, so expect some findings.   And remember, you are not closing on the property in the condition it was inspected. Rather, the inspection is just part of the process on the path to getting the property to its final condition.    Then you and the seller agree on what will be fixed (at the sellers expense, and verified to your satisfaction), prior to closing.    The seller is anticipating that they will need to make some final repairs (at their own expense) after they get the inspection repair request from you. This is all part of the normal process.   Of course, you can get in a car or hop on a plane and visit the turnkey property yourself and walk the property with your inspector, but I’d say fewer than 10% of turnkey buyers do this.    But going to see the property in person is never a BAD idea.   Today, it’s easier than ever for an inspector or provider to e-mail you a property video. The report that you get from your Home Inspector after he visited the home will have lots of photos and details.   Typically, purchase offers are contingent on a home inspection of the property to check for signs of structural damage or things that may need fixing.  This contingency protects you by giving you a chance to renegotiate your offer or withdraw it without penalty if the inspection reveals significant material damage. Once the seller makes any needed repairs that the third-party inspector found, I suggest having a re-inspection done by that same inspector. This gives you the chance to confirm that any agreed-upon repairs have indeed been made. You might spend another $100 on this re-inspection. Now, if the original inspection showed that a leaky faucet needed to be replaced, and the seller said they’d do it, and the re-inspection finds that that work wasn’t done as promised, then any FURTHER re-inspection costs are often a cost borne by the seller. Which seems pretty fair - they said they’d do work - and the re-inspection that you paid for confirmed that it hadn’t been done in this case. Now, back to the negotiation. If you asked for a reduced Purchase Price, that could lean away from you asking for too much in the inspection.   How do I like to play it? Often times, I make a full price offer for the property - and I might even let the seller know at that time that I’d like to give you your price - it’s a full $120,000 in this case - and since you got your price, I’d like my terms.   My terms are - that I’m more bold in what I request the seller to do from the inspection findings.  Maybe I will ask them to add that extra insulation in the attic as one of those “Recommended buy not Required For Financing” items - or replace a window pane that had condensation inside it.   Then, what’s my justification for asking the seller for that. It’s that I’m paying your full price. Again, financing an extra $1,000 only costs me $5 per month.   Now, let’s talk about the property appraisal.    The appraisal is a tool that the bank uses to verify the quality of their collateral.    Because in your loan paperwork, at closing, the bank will basically tell you that if you don’t make your monthly payments, you’ll be foreclosed upon and the bank will take back the property - that’s their collateral.   So they want to make sure that the property seems to be worth as much or more than you’re in contract for - that $120,000 in our example.   Your lender is the one that orders the property appraisal, not you. In about 90% of U.S. states, you as the buyer pay for the appraisal. It costs up to about $500.    The appraiser is a member of a third-party company and is not directly associated with the lender. It wasn’t always that way.    In fact, one factor that led to the housing downturn of 2007 in the Great Recession is that some lenders & appraisers were “in cahoots”. Haha! That can’t happen anymore.    BTW, the appraisal and some of these other steps are all part of your closing costs. All part of that … about 4% of the property purchase price.   The appraisal is typically done by a certified appraiser physically visiting the home - and these people always seemingly have a tape measure with them.   The appraiser checks out the premises and their job is to use market comparables to make sure that the lender has adequate collateral in case you, the borrower, default.   OK, the bank doesn’t want to lend out more than the property is worth or else they could find themselves underwater if the borrower defaults. The appraisal protects against this.   And don’t confuse this appraisal with an assessment. An assessment is something that a county or municipality uses the measure the amount of property taxes that are paid. It’s really unrelated to this appraisal.   Now, before you select your Property Manager, I’d really like for you to talk with them on the phone or use a free video chat service like Zoom - it’s Zoom.us - it works a lot like Skype but Zoom is easier to use.   I mean, I don’t make many phone calls in my life anymore - much like a lot of people. But I want you to have a phone or video call with your PM because ...   I want you to have a good vibe - a good feeling about your property manager and to vet that manager just like you would vet out a manager for a non-turnkey company.   Just because a property is branded “turnkey” by a company, doesn’t mean that you can dismiss doing your due diligence. Turnkey can be a great system, but there’s nothing magical about that word alone.   Don’t overlook developing a good feeling about your Property Manager, because this is the one long-term relationship that you expect to have. I just can’t emphasize that enough. Your Manager is one of your key team members.   They’ll tell you the character of the current tenant that’s currently in the home. Find out how the manager is going to pay you. Feel them out, know what your communication flow is going to be like.    If they’re part of the same company, a good manager should also connect you with whom renovated your turnkey property in case you have some questions for them.   Now, notice that I haven’t mentioned a real estate agent. Most turnkey providers work in a direct model so that you don’t have to go through agents.   You must sign a written Management Agreement with your Property Manager.    This gives the manager written authority to manage your property for you, it will state their fees, and you’ll have your contact information in that agreement.   There are typically two fees - a leasing fee and a management fee.   A leasing fee is where you’ll spend ½ month’s rent to one month’s rent amount when the Manager screens a new tenant. So hopefully that only happens every 1 or 2 or even 5 years if you’re lucky.    Yes, you can typically approve or reject their selected prospective tenant. You are going to be the owner of the property afterall.   A management fee is often 8-10% of one month’s rent income - and that’s what you pay monthly - ongoing.   You can sign a Management Agreement with the property provider if they have management integrated in-house. If not, you can lean on your provider for some management recommendations.   Now, there’s one blank to fill in on your Management Agreement - it’s a dollar amount up to which the manager can pay for expenses that come up - against your account - without contacting you.    For example, if the number $500 is written in there, that means that if a maintenance or repair expense on your property exceeds $500, they must contact you prior to incurring that expense.   You get to choose that dollar limit. As a beginning real estate investor, go with a lower figure.    Then as you get comfortable and / or you don’t want to be bothered about the property as much, you can increase that dollar limit in which they need to contract you about approving maintenance or repairs.   Basically, if there’s something that has to do with the property & you don’t want to deal with it, then make sure it’s written in the Management Agreement that the manager will perform it.   Typically, it’s going to say that the manager will collect rent, handle tenant relations, respond to repair requests, send you the rent, keep your ledger of income & expenses on the property, post legal notices if a tenant is paying the rent late, and sooo many other associated duties that I personally don’t want to deal with. I just want to live my life.   Get that Management Agreement done - fully executed - signed by both you & the Manager BEFORE you close on the property.    Before you close, you can buy property insurance from any provider you choose.    Your turnkey provider is often happy to recommend some providers that their other clients have used in this market, or you can just Google and find your own.    Be sure to let the insurance provider know that this is a rental property (not a primary residence where you live and not a second home).    Most turnkey buyers purchase both hazard and liability insurance as part of their policy. Like any other insurance policy, you will have choices about deductibles, monthly payments, and coverage amounts.    If you are financing your property, your lender will most likely be able to combine your property taxes and insurance into your monthly payment, so you have one monthly payment for principal, interest, taxes and insurance (PITI) … much like you would on your primary residence.   The financing process typically takes about 30 days from the time you submit your EM.    Remember that YOU are a factor in how fast your property closes. If that lender needs another document, give it to them pretty promptly.   When you have finalized your due diligence, and verified that the seller has made all the agreed upon repairs from the home inspection report, you will be ready to close.    You likely live in a different state than the property and will close remotely. The title company (or its a closing attorney in some states) will prepare your closing documents - including your loan docs...    ...and can arrange for a mobile notary to meet you with the docs wherever you choose (your home, your office, your local coffee shop, etc.) so you can sign the docs in front of a notary who will then overnight the docs back to the Title Company so the transaction can fund.   Your lender will arrange for a title company to handle all of the paperwork and make sure that the seller is the rightful owner of the house you are buying.   It may seem like the closing process is a lot of work, but you’ll really spend most of the time waiting. Most of the time, you'll just be sitting on your hands, waiting for someone else involved in the transaction to come through.    So find something enjoyable to occupy your time and distract you while you wait, and feel secure in the knowledge that you've done your research and know how to make your closing process go smoothly.   When you complete that closing with the mobile notary - I’ve done these closings at my home’s dining room table, or even in my employer’s conference room back when I used to have a day job - then, hey!    You need to congratulate yourself on adding another income property to your portfolio.   You know, the good news is that of all of these stages we’ve discussed - the longest stage of them all is your ownership of the property. You Own & Collect the cash flow.   And hey, this isn’t reason enough alone - but it’s kinda cool that you own property in TN and FL and IN.  You own part of each one of those states.    And with each new turnkey property you buy, you might have just increased your mostly passive cash flow by $311 per month or $118 per month or whatever it is.   If you can swing it, it can be more efficient timewise for you to buy more than one property at a time.   As you buy more income properties, it not only gets easier because you know the process, but you often get quantity discounts.   For example, a management company might charge you a 9% management fee on your first three properties, but once you own four or more, they might charge you 8% on all four rather than 9%.   Insurance companies often have similar discounts for you….so you may very well get a little more profitable as you buy more property.   A rent-to-value ratio of 1% is generally quite desirable, meaning one month’s rent is 1% or more of the purchase price.   For example, a $120,000 property and a rent income of $1,200.    $1,000 rent income on a $120,000 property would probably work fairly well too.   You typically want to avoid properties with RV ratios of less than 7/10ths of 1%, or 0.75.    Let’s keep in mind that the RV ratio is only a rule of thumb. It doesn’t account for a major recurring expense like property taxes.   In high property tax jurisdictions like many Texas markets, you probably want that RV ratio up higher.   Now, as a beginning real estate investor, or even an advanced one, don’t worry about not know it ALL. No one’s ever going to know it all with real estate.   In fact, I’ve been actively investing in real estate since 2002 and just within the steps of ACQUIRING a property, like I carefully discussed today, some incremental half-step will come up in the process that I hadn’t been thinking about previously - like signing a Lead Paint Disclosure Form.   So, you don’t need to commit all of this stuff to memory.   Now, something that novice real estate investors say sometimes is something like: “I would only buy an income property that I would live in myself.”    I contend that that is an awful criterion upon which to found strategic fundamentals on purchasing an income property.   Once one filters property that way, they have let their emotions trump facts.    If the fact that a clean, safe, affordable, and functional property has a good occupancy rate in a sound employment market, decent ENOUGH neighborhood, and the numbers make sense - that’s more important.   OK, you aren’t living there yourself so it’s not a sound criterion.   Shoot, if I moved into any income property that I own, my lifestyle would take a substantial hit. Yet I’m not a slumlord - I provide housing that’s clean, safe, affordable and functional.   But they’re not replete with fantastic amenities, it does not have Corinthian architecture with alabaster columns - OK - but I know there’s a demographic for my rental property type that demands this responsible-but-no-frills housing over time.   It’s about asking yourself a better question, like, “Will this property secure an income stream?”    Alright, would you rather have your property look “cute as a button” - or secure an income stream?   OK, we’re investors here.   Some think that in today’s electronic age, you should be able to complete a property purchase from the time you write an offer until you close on a property in the same-day.    Well, that’s certainly not true. As you witnessed, physical things need to take place because you’re buying a real, physical asset.   We’ve been talking today about how you buy an income property - just simply that - especially as it pertains to buying an out-of-state turnkey income property - from the time that you get a property under contract and submit the earnest money to escrow all the way to closing.   ...because that’s how to generate passive income, which in turn, creates a rich life for you.   Again, this isn’t an all-encompassing guide today with EVERY little detail. But we’ve hit the major milestones in the process & more.   You’ve got a good general guide on the income property-buying structure.    You might have learned something about prioritization - perhaps LLCs matter less than you thought and a communicative Property Manager matters more than you thought.   Today’s show has the type of content that will be about as relevant 5 years from now as it does today.    Now, today is also evidence that real estate does not have the liquidity that some other investments do. It takes longer to get in & get out.   However, that low liquidity actually contributes to relative price stability in real estate. OK, there’s no panic selling in real estate.   Maybe the most important thing for you to keep in mind is that...   You cannot make any money from the property that you don’t own.   Your future depends on what you do today.   To “know” something and not “do” something is to really not know something.   The most important thing you can do is act...because you cannot make any money from the property that you don’t own.   Again, a recommended, specific INCOME property lender is Ridge Lending Group. Our network of income property providers is at GREturnkey.com   And one particular property provider to highlight over there is Memphis, Tennessee’s Mid South Home Buyers. Not only are they great with beginners, but they have profitable properties at lower price points, which some beginners would rather start with.   MidSouth Home Buyers has been rather popular for all those reasons and that’s created a longer wait list. Well, the news is that MidSouth Home Buyers has just expanded into another great investment market - Little Rock, Arkansas.   So that should help shorten their wait list.   If you can’t remember those three resources - Ridge Lending Group for the loan, GREturnkey and MidSouthHomeBuyers for the properties, I’ll be sure that they’re the first three links in the “Resources Mentioned” portion of the Show Notes accompany this episode.   There would be nothing worse than for me to share today’s knowledge with you - then not let you know where to go to act upon that knowledge.     It’s been my pleasure to bring you your Beginner’s Real Estate Investing Audio Guide today. If you got value from today’s show, I’d be grateful if you took a screenshot of the podcast player image here on your podcatcher …   ...and posted it to your Social Media account - your Facebook, Twitter, Instagram, or LinkedIn - and let your social friends know that if they’re ever interested in real estate investing, this episode is a great place to start.    Next week, I’ll talk about how you Retain your tenants at the same time you RAISE the rent.    I’m your host, Keith Weinhold. Don’t Quit Your Daydream!   
July 8, 2019
Property management is the glue that makes your investment stick together. But it’s a tough job. GRE’s own John Collins has done management consulting on a project of 159 single-family rental homes. Problems he encountered: 30% pay rent late or not at all Arson Unassigned parking spaces Domestic violence  Abandoned car Condensation Pets and pests “Jerry Springer Show” in leasing office Unwanted boyfriend that wouldn’t leave Syringes found in home Daylight coming in through baseboard   Upgrading tenants from C-Class to B-Class. Raising the rent attracted better tenants. With just a $3 monthly rent increase per unit at a 6% cap rate, the project value increases $100,000. We break down the math. What gets measured gets improved. Maintenance issues occur with a property about quarterly. Practicing “tactical empathy”.  To contact John, e-mail info@getricheducation.com with “For John Collins” in the subject line. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: Contact John Collins via e-mail: info@getricheducation.com Mortgage Loans: RidgeLendingGroup.com Turnkey Real Estate: NoradaRealEstate.com QRP: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Our Tampa Real Estate Field Trip: RealEstateFieldTrip.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold
July 1, 2019
Long-term rentals beat AirBnb and other short-term rentals (STRs) in a recession.  STRs depend on vacationers. Stocks typically have a Cash-On-Cash Return of zero. Investor-advantaged property typically sells for $70 to $150 per square foot. Gregg Cohen joins me to discuss the importance of market appreciation for cash flow investors. Get started with new construction investment property at: GetRichEducation.com/Jax. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: Jacksonville Turnkey Property: GetRichEducation.com/jax Tampa Real Estate Field Trip: RealEstateFieldTrip.com Mortgage Loans: RidgeLendingGroup.com Turnkey Real Estate: NoradaRealEstate.com QRP: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold  
June 24, 2019
If a Depression occurs, you’ll feel pain as a real estate investor. RE values and rents will both decrease. Awful. But stock and mutual fund investors will likely feel greater pain. Learn why today. Real estate investors maintain control. Interest rates would tend to go lower in a Depression. You could refinance. It’s also a better time to improve your property because people will be out of work. Join our Tampa Real Estate Field Trip October 10th to 12th, 2019 in St. Petersburg, FL. __________________ I answer four listener questions today: What happens to RE investors in a Depression? Should I invest in a college area? Do I need a home inspection? Can you explain Scarcity vs. Abundance? __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: Tampa Real Estate Field Trip: RealEstateFieldTrip.com Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey Real Estate: NoradaRealEstate.com QRP: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold  
June 17, 2019
Will your property lose value now that Amazon is selling homes for under $20K? Pre-fabricated homes and 3-D printed homes often have major limitations and livability problems. All homes have materials cost, labor cost, and the cost of the underlying land. Mortgage interest rates just hit a 21-month low. Home prices are expected to rise 4% over the next year. ________________ Guest Dave Zook discusses the opportunity to invest in ATMs. U.S. cash use is increasing at 5% annually. Many ATM users pay $2 - $3 to access $20 or $40. There’s a profitable opportunity for you to invest in ATMs. Learn more here. 24.5% is your projected CCR on a lot of seven ATMs. Terms discussed: pre-fabricated home, 3-D home, cash call, accredited investor. If you’re an accredited investor, learn more about ATM investing at www.GetRichEducation.com/ATM __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: ATM Investing: GetRichEducation.com/ATM MarketWatch: Amazon’s $20K Houses CoreLogic: Home Prices To Increase 4.7% RE Portfolio Software: Stessa.com Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey Real Estate: NoradaRealEstate.com QRP: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold
June 10, 2019
You’ve never thought about this “new way” to beat inflation. Three ways to beat inflation: 1) Tie long-term fixed interest rate debt to a cash flowing property. 2) Own gold. 3) Spend your money. Yes, I advocate spending your money. Die with memories, not dreams. Housing Data Analyst Logan Mohtashami joins us. Logan provides mortgage interest rate predictions to BankRate.com. National Mortgage News calls him a “social media star.” He’s published in Business Insider, Bloomberg Financial. He believes: Interest rates will stay low There’s no housing collapse imminent Housing price growth will slowly continue Rent demand will stay strong Homeownership rate up to 66% in a decade Inventory will stay low because people live in their homes longer Birth rates will rise Our high national debt doesn’t matter Logan is known as “The Chart Guy”. Learn more about him at LoganMohtashami.com. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: Logan’s Website: LoganMohtashami.com Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey Real Estate: NoradaRealEstate.com QRP: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold  
June 3, 2019
Single-family homes are today’s hottest rental type - both Realtor.com and John Burns RE Consulting agree. Boomers don’t want the responsibility of homeownership, and also don’t want to live in an apartment. This makes SFHs the hottest rental. Rental demand has shifted to basics: affordable, fewer amenities, better school districts. Suburban markets should see the concentration in future growth. Seth Williams of REtipster.com joins us to discuss the best real estate investing websites and apps. We also discuss self-storage facilities. Apps and websites: DealMachine helps you find deals. DealCheck helps you analyze deals. TenantCloud helps you self-manage rentals. BombBomb is a video e-mail service. Trello and Slack for workflow. Blinkist condenses books. RentOMeter estimates rents. Dropbox and Google Drive manage files. Evernote stores notes. DocuSign for digital contracts and signatures. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: Seth Williams: www.REtipster.com seth@retipster.com Article: Hottest Rentals Are SFHs Website & Apps Discussed: DealMachine DealCheck TenantCloud BombBomb Trello Blinkist RentOMeter Dropbox Google Drive Evernote DocuSign Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey Real Estate: NoradaRealEstate.com QRP: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold  
May 27, 2019
Compound interest doesn't work in real life. 5% is the average mutual fund investor return, though the S&P returned 10%. This is for the twenty years ending in 2015 (Source: Dalbar). This is even before taxes and inflation! Why are 401(k)s failing people? Inflation, emotion, taxes, fees, and volatility. Emotions make humans sell high and buy low - a recipe for disaster. I discuss how cash flow helps you remove emotion. Garrett Gunderson of Wealth Factory joins us. Financially-free people prioritize this way: value, cost, then price. Economic independence has five levers: Recover cash Engineer wealth Accelerate investment income Scale business revenue Treat yourself as the greatest asset Behavioral finance is where investing meets emotion. Facts don’t change people’s minds. I discuss what does. “Facts are stubborn things. But our minds are even more stubborn.” -John Adams __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: Garrett Gunderson: WealthFactory.com CashFlowBanking.com Articles referenced: Why Investors Get Below Average Stock Returns Facts Don’t Change People’s Minds. This Does. Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey Real Estate: NoradaRealEstate.com QRP: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold  
May 20, 2019
Your equity is re-positioned when you make a 1031 Tax-Deferred Exchange. All at once, you can: Increase your cash flow Increase your leverage ratio Create arbitrage Increase your velocity of money Expand the value of your RE portfolio Do it all with zero tax on the gains Gain geographic diversity Real estate capital gains tax is higher than many think: 15% - 23.8% Federal, plus State of up to 13.3%, plus Depreciation Recapture. Californians could pay 37%+ in capital gains tax. Fortunately for real estate investors, you can defer all of these taxes with a 1031 Tax-Deferred Exchange. We discuss your 45-day and 180-day timelines, “like-kind”, your Qualified Intermediary, and 1031 traps to avoid. Columbus, Ohio could potentially be a wise place to exchange your equity into. Why Columbus? Ohio’s largest city and capital Fortune 500 companies High rents & low purchase prices Growing city Family-friendly suburbs Low cost of living with good incomes 14th-largest U.S. city SFR Rents $800 - $1,300, Prices $80K - $150K This provider has turnkey rehab operations integrated with management so that you can buy an “all-done-for-you” single-family rental property Connect with the provider and get their Columbus Investor Report here: www.getricheducation.com/columbus. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned Columbus Income Property: GetRichEducation.com/Columbus Forbes: Californians Move, Then Sell Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey Real Estate: NoradaRealEstate.com QRP: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold  
May 13, 2019
More people are renting. The homeownership rate has declined to 64%, from 69% in 2005.  Credit score “inflation” has occurred due scoring model changes and a strong economy. The average FICO score is now 704, a record high. GDP in Q1 grew 3.2% year-over-year, exceeding expectations. A new program called the Home Select Loan (All-In-One Loan) operates similar to a 1st Lien HELOC. Ridge Lending Group President Caeli Ridge & I discuss the details: Line Of Credit for 30 years 80% LTV on home, 70-75% LTV on investment property No principal payments due for ten years Potential interest savings Better liquidity Interest rate based on LIBOR + a margin Use the simulator to see how much interest you save vs. your current mortgage. I bring you today’s show from Dallas, TX. __________________ Want more wealth?  1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey Real Estate: NoradaRealEstate.com QRP: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold
May 6, 2019
If you make $110K per year unfulfilled, would you leave that job to make $78K fulfilled? Commentary. Learn how to put only a 5% down payment on your home, get a great interest rate with conventional financing and pay zero monthly Private Mortgage Insurance (PMI). GRE Listener Anna Ferntheil joins us. She is a former co-worker of mine at the State Department Of Transportation. Still at her day job, Ferntheil has bought her first two turnkey properties in Ohio at GREturnkey.com, totalling about $400 of total monthly cash flow. Rather than “trading her time for dollars” for decades, she’s building passive income streams through real estate. She now “thinks different”. Ferntheil stresses the influence of associating with like-minded people. She’s also investing in our referred Private Money Lending program, cash-flowing agricultural real estate, and moving her retirement to an eQRP (Enhanced Qualified Retirement Plan). You don’t want “job security”; you want freedom. Security is the opposite of freedom. Today’s show is coming to you from Anchorage, AK. Next week, I’ll be in Dallas and Houston, TX. The following week, Guatemala City, Guatemala. After that, Portland, OR. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned Anna’s E-Mail Address: amferntheil@gmail.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey Real Estate: NoradaRealEstate.com QRP: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold Program contains a sample of The Notorious B.I.G.’s “The What” by Bad Boy and Arista Records.
April 29, 2019
Keep your debt. Get financially-free instead. We’re talking about good debt. Retiring your debt often means you can’t retire yourself. Home equity is: Unsafe. Illiquid. Has zero rate of return.   So then, why have so much equity in any one property? Back in The Great Depression Era, banks could call your loan due-in-full anytime. They can’t do that today. Don’t fear mortgages. Embrace them; even collect them! Every dollar that goes into mortgage principal paydown is a dollar that you didn’t invest. Separating equity from your home gives you more dollars to invest, not save. Paying down your mortgage INCREASES your foreclosure risk. Most think the opposite is true. Have a lot of home equity? Treat it as you like. But you probably have more dollars to invest than you think. So what’s the formula? Consider keeping low equity positions in many cash-flowing investment properties. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned Find Properties: GREturnkey.com Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey Real Estate: NoradaRealEstate.com QRP: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold  
April 22, 2019
Chicago and Philly are doomed. Today’s guest, Peter Zeihan of Zeihan.com, tells us why. U.S. housing will change with shifts in immigration. Future immigrants will have more skills than current immigrants. Peter & I discuss city-by-city economic fortunes: New York City - Top U.S. destination for capital. But capital is beginning to flow to secondary cities like Charleston, Dallas-Fort Worth, Denver. NYC is not business-friendly. Philadelphia - Should be an economic powerhouse, but make poor business decisions. Not a world-class city. Will hollow out. Washington, D.C. - Could face problems with contractions in government demand. Cleveland, Pittsburgh - Both trending well with tech-based reinventions. Chicago - Rife with deep economic problems. May take national emergency to save them. Florida metros - Tampa, Orlando, Jacksonville areas will keep booming. Memphis - Looks positive. Transportation center. Texas metros - Business-friendly, thriving, decisions made at local level. Big regional differentials in property tax. California - Most economically “unequal” state in U.S. Seattle - What pushes up housing prices? Geographic isthmus, new business. Hawaii - Real estate prices are high and resilient. Much of this is due to geography. With NAFTA’s restructure, Texas and the Great Plains are poised to prosper. Want more of Peter Zeihan? He was on Get Rich Education episodes: 101, 114, 236, 237. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned Peter Zeihan’s website: Zeihan.com Peter Zeihan on Twitter: @PeterZeihan Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey Real Estate: NoradaRealEstate.com QRP: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold  
April 15, 2019
Learn how the U.S. compares to the rest of the world today - economically, geopolitically, and demographically. The global order no longer serves American interests. It’s over. Today’s guest, Peter Zeihan of Zeihan.com, tells us why. Peter & I also compare strength among global currencies, and discuss inflation vs. deflation, and interest rates. The U.S. has 90-95% economic self-sufficiency. For comparison, Germany’s is 40%. Chinese global financial interaction is waning. Europe’s negative interest rates are a future likelihood. Mexico, Myanmar, Vietnam, and Indonesia are poised for a bright economic future. China and the United Kingdom are expected to be future losers. Zeihan: London will decline. That money and activity will come to New York City. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned Peter Zeihan’s website: Zeihan.com Peter Zeihan on Twitter: @PeterZeihan Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey Real Estate: NoradaRealEstate.com QRP: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold  
April 8, 2019
#235: Under age 30? Then you’ve never been smacked in the face with an economic recession. I discuss. At 33, Tim Bratz is an expert in apartment buildings, finding deals, raising money, coaching, personal development, and mindset. Tim’s real estate epiphany came when he saw a lucrative Manhattan real estate deal from the inside. He bought his first house in Charleston, SC in 2009 with a credit card for $14,000. Today, he has substantial equity in 2,000 doors and $150M+ in value. The key? "Give before you ask." I ask Tim about falling apartment cap rates today. He has an answer and plan for resilience. He buys distressed properties at a discount and forces appreciation. Tim attributes his rapid success to attending mastermind groups. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned Tim Bratz Websites: CommercialEmpire.com CLEturnkey.com Tim Bratz Facebook: Facebook.com/tlbratz Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey Real Estate: NoradaRealEstate.com QRP: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold  
April 1, 2019
#234: Learn why Millennials still cannot buy homes, and why real estate sales are down. Real estate cannot be flash-printed or mined. It has a finite supply. If you live in an investor-advantaged market in the Midwest or South, should you still buy out-of-market? Get mortgage pre-approval before you make offers on property at GREturnkey.com. Wealth Factory’s Garrett Gunderson & I discuss why net worth is not the top wealth measure. Learn the “one question” to define another’s scarcity and abundance mentality. Two key formulas: Cash Flow Index = Loan Amount / Min. Monthly Payment Investment Index = Down Payment / Monthly Cash Flow I’m bringing you today’s show from the southern Caribbean island of Bonaire. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned Garrett’s Website: WealthFactory.com Garrett’s Book: Text “WWRD” to (801)503-9667 Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey Real Estate: NoradaRealEstate.com QRP: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold  
March 25, 2019
#233: It's Rich Dad Month, Week 4 of 4. Guest Robert Kiyosaki joins us. Robert authored the landmark book “Rich Dad, Poor Dad” and is the #1-Selling Personal Finance Author Of All-Time. He & I discuss the difference between real assets and fake assets. Real assets put money into your pocket every month; they feed you. Fake assets need you to feed them. Robert thinks all this is wrong: Go to school. Get a job. Work hard. Save money. Get out of debt. Invest in the stock market for the long-term. Savers are losers. We also discuss: the dollar and the gold standard, teachers, taxation, derivatives, debt, socialism, infinite returns, and the Alaska Permanent Fund Dividend. It’s Robert’s third all-time Get Rich Education appearance. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources Mentioned Rich Dad Website: RichDad.com Kiyosaki’s New Book: Fake Nixon Gold Standard speech Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey Real Estate: NoradaRealEstate.com QRP: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold  
March 18, 2019
#232: It’s Rich Dad Month, Week 3 of 4. Learn how to pummel your tax bill with Rich Dad Tax Advisor Tom Wheelwright. Retail store closures continue to change the complexion of American malls and retail. Hear a humorous comparison between spending your retirement at an Assisted Living Home vs. the Holiday Inn. Learn how to take the home office deduction, about real estate Opportunity Zones. Did you know that to take advantage of Opportunity Zones, you basically must be a developer? With Bonus Depreciation, it could now make sense for you to tear down your IRA. Consider converting it to cash, then invest it for cash flow. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: Tom Wheelwright: Wealthability.com Freddie Mac House Price Index: FreddieMac.com Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey Real Estate: NoradaRealEstate.com QRP: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold  
March 11, 2019
#231: It’s Rich Dad Month, Week 2 of 4. Learn how to optimize your rent income with Ken McElroy. Learn how to create a profit spread just like the banks. Case-Shiller vs. Freddie Mac - learn who has the best U.S. Housing Price Index. Freddie Mac tracks all 50 states; Case-Shiller only tracks 20 large cities. Freddie tracks sales from mortgages. Case-Shiller gets data from county assessor and recorder offices. Real estate prices have an inverse relationship with rent amount. If rent demand exceeds supply (tight market), learn how quickly you should raise rents. If rent supply exceeds demand (slow market), learn how low you should let your standards drop. Learn how to avoid “over-improving” a rental unit. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: Ken McElroy: www.KenMcElroy.com Freddie Mac House Price Index: FreddieMac.com Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey Real Estate: NoradaRealEstate.com QRP: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold
March 4, 2019
#230: It's Rich Dad Month, Week 1 of 4.  If you work at a W-2 job, learn how to reduce your taxes. Become a “real estate professional”. If you’re married with a stay-at-home spouse, you increase your chances. To qualify as a real estate professional, RE must be your principal activity and consume at least 750 annual hours. There are four income types for tax treatment:     1) Earned     2) Ordinary     3) Capital gains     4) Passive Passive losses are only deductible against passive income. We’ve recently undergone the most sweeping tax changes since 1986. Your bonus depreciation benefit was introduced in Trump’s Tax Cuts And Jobs Act - are you taking advantage of it? __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: Tom Wheelwright: www.Wealthability.com Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey Real Estate: NoradaRealEstate.com QRP: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold  
February 25, 2019
#229: Holy shift! Mortgage rates have hit their lowest level in a year. 5.5% interest rate and a 20% down payment for an income property are today’s terms. 740 credit score gives you the best rates. Beyond your first 10 properties (single) and 20 properties (married), there is NO LIMIT on the number of properties you can buy (SFHs to four-plexes). Though after 10 single / 20 married, your interest rate will be higher, though not by much. Learn from Ridge Lending Group CEO & President Caeli Ridge about what you need to qualify for an income property loan today. We discuss your DTI: debt-to-income ratio. I give an example of how to determine yours. Want a cash-out refinance of your income property? 75% LTV for SFHs, 70% LTV for 2-4 unit properties. Learn about why today’s smart money often buys 1-4 unit properties rather than larger apartment buildings … … it’s the safety & stability of 30-year fixed loans. Remember, last month on the show, Jim Rogers told us interest rates will go much higher over the long-term. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: Mortgage Loans: RidgeLendingGroup.com Find Properties: GREturnkey.com Cash Flow Banking: ProducersWealth.com Turnkey Real Estate: NoradaRealEstate.com QRP: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold  
February 18, 2019
#228: Is Trump’s real estate wealth self-made or inherited? You get surprising answers. Also learn about property hold time, equity flipping, cap rates, health insurance, a mastermind group. How long should you hold onto an investment property? Short answer is 8 years. Generally, sell when you have at least 15% more equity than your contemplated replacement. “Equity flipping” is a term that I introduce to you today. Don’t flip property, flip equity. This increases your velocity of money. Learn all about Cap Rates. Cap Rate is income divided by price. Cap Rates are driven by supply and demand. Cap Rate excludes financing because you brought a mortgage to a property, the property didn’t come with the mortgage. Learn about health insurance for entrepreneurs. Next month on the show: Robert Kiyosaki, Tom Wheelwright, and Ken McElroy will all be here for “Rich Dad Month”. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: Visual Capitalist: Trump: The Real Story World Real Estate Trends & Climate: GlobalPropertyGuide.com Collective Genius Mastermind Group: http://invite.thecollectivegenius.com/ Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey Real Estate: NoradaRealEstate.com QRP: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation Keith personal Instagram: @keithweinhold  
February 11, 2019
#227: You are aging. So is America. The U.S. median age keeps rising. We need more senior housing. Your demographics are baked in the cake. Gene Guarino, owner of the Residential Assisted Living (RAL) Academy & I tell you about the opportunity. Serve seniors by converting Single-Family Homes into Assisted Living Homes (ALHs). There are two distinct pieces here:     1) The real estate.     2) The business with residents & care staff. Average U.S. ALH tenant pays $4,000 per month x 10 residents = $40,000. Your net is about 30%. That’s $12,000 month. We discuss how to find the right real estate and strategies for filling it with residents. Rule of thumb: 300 sf for every resident is quite comfortable. Learn how an ALH-SFH “Profit & Loss Statement” looks. ALH tenants are long-term, low impact, and pay above-market “rent”. My friend Brandon heard Gene here on the show before. Brandon got started. We discuss. It’s easiest for you to buy an existing business. If you can’t then learn about your care staff’s necessary qualifications. Financing for ALHs? 80% loans. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: Gene’s Online Course Gene’s Live Course Brandon’s e-mail: thrivealh@gmail.com Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey RE: NoradaRealEstate.com QRP: TotalControlFinancial.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation  
February 4, 2019
#226: You’re at risk with only one income stream. Federal government workers thought their income stream was “secure” until the recent shutdown. Recently, my friend was uprooted when his employer handed their family a job transfer (move or be fired). With only one income stream, you’re beholden to one boss or one company’s whims. You need multiple, durable passive income streams. America uses its land in surprising ways: 4% is urban land. 41% is pasture & range land. 20% is crop land. One company owns a timber stand nearly the size of West Virginia. Surprisingly, America is becoming less mobile. Fewer people move homes annually. Effects 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 best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: Bloomberg: How America Uses Its Land Axios: Americans Less Mobile 2019 State Business Tax Climate Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey RE: NoradaRealEstate.com QRP: TotalControlFinancial.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation  
January 28, 2019
#225: Learn what manager fees you should pay & not pay. The “glue” that binds you & your profitable property together is your Property Manager (PM). Higher PM fees might be better or worse for you - it depends on what duties they perform. You pay both a Management Fee and a Leasing Fee. If there’s an activity that you DON’T want to do with your property, then make sure your PM will do it as stated in your Management Agreement. What should Managers DO? Collect rent, find tenants, market vacant property, perform maintenance, pay bills, handle emergencies. What DON’T Managers do? Sell or refinance a property for you. What falls in between? Extensive renovations, evictions, regular maintenance inspections. We discuss Property Management Agreements. GRE-Houston is perhaps the best investment market we’ve never discussed before. As America’s 4th-largest city, Houston has good rent-to-value ratios, low property prices, a vast economy, stunning growth, and laws benefit landlords over tenants. The Houston provider has BRAND NEW construction SFRs and duplexes for you. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: Houston Turnkeys: GetRichEducation.com/Houston Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey RE: NoradaRealEstate.com QRP: TotalControlFinancial.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation
January 21, 2019
#224: The legendary Jim Rogers tells you about a recession, the economy, interest rates, residential & agricultural real estate, inflation vs. deflation and more. Jim Rogers co-founded The Quantum Fund, has his own commodities index, own ETF, and is one of the most influential business and investing moguls of our time. He tells us interest rates will go much higher. Lock in your debt now. Why inflation will win over deflation. Wall Street is coming to an end. He tells you why. Jim loves agricultural real estate. See our provider at GetRichEducation.com/Coffee I ask: “What should today’s young person do?” __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Listen to this week’s show and learn: 04:15 The place to be was London 200 years ago, NYC 100 years ago, Asia today. 06:12 Interest rates will go much higher. 09:38 Inflation vs. deflation. 12:33 Recession. 14:40 Real estate, agriculture. 18:06 Wall Street is coming to an end. 21:25 What won’t change? 24:35 Coffee, water. 27:54 “What should today’s young person do?” 30:12 Korea. 34:48 Interview summary. Resources mentioned: Jim Rogers’ Book Jim Rogers - Wikipedia Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey RE: NoradaRealEstate.com QRP: TotalControlFinancial.com Find Properties: GREturnkey.com Follow us on Social: @getricheducation  
January 14, 2019
#223: You must build streams of income, not pools of income. Learn why. Then we recap what really happened in 2018, and predict how that affects you in the next couple years. Real estate up 5.5%, Dow and S&P down 6%, NASDAQ down 4% year-over-year. Learn how stock and bond movements affect mortgage rates. Next week, business mogul Jim Rogers joins us. Finally, will you “Live Before You Die”? (Lyrics to this segment below.) __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Listen to this week’s show and learn: 02:40 Income Streams vs. Pools: The context of asset capital values. 07:21 Running the annual numbers - real estate, stocks, CPI, gold, oil, etc. 09:48 President Trump’s barbs. 14:23 Stocks and bonds affect on mortgage interest rates. 16:30 Predictions from Realtor.com’s Chief Economist. 20:51 Jim Rogers joins us next week. 23:32 “Live Before You Die” Audio Program. 29:22 “Live Before You Die” thoughts. Resources mentioned: Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey RE: NoradaRealEstate.com QRP: TotalControlFinancial.com Find Properties: GREturnkey.com   “Live Before You Die” lyrics:   If you work for a salary or a wage, then money is an important factor in your life.   So there you are, making between $60,000 and $150,000 per year.   You’ve got a good home, steady employment, you drive a decent car. Sometimes you even feel “comfortable.”   This one precious life of yours is made up of time. Are you trading away that time for dollars at a job that you aren’t passionate about?   Every morning, you might even separate yourself from those you love… in order to do this.   With real estate investing, you don’t want properties so much as you want its passive income - income that you don’t have to work for.   Now your eternal time vs. money dilemma is solved.   If you don’t know why you urgently need financial freedom, do it so that you can “Be Yourself”.   See… you wake up to a blaring alarm to get to your job - and that’s how your day starts. Then you’re programmed to tote company lines all week.   Near the end of the work day, you’re playing another tireless charade - screwing around on the internet while you’re watching the clock like it’s a countdown timer so you can get out of there. that’s unethical.   You aren’t being yourself… because you wouldn’t naturally do those things.   Most employees aren’t driven by purpose, they’re driven by fear.   Your growth can only begin when you peel back each layer of your vulnerability onion and get honest with yourself.   The roots of change are nourished with genuineness.   You’d rather quit your job and be a nature photographer or a Red Cross volunteer or a sports writer or travel.   Even if your job is OK, wouldn’t life be better if you were job-optional?   You haven’t created the time to feel peace, joy, happiness, giving, love and freedom in your life.   You spend all this time learning how works works, zero time learning about how money works... yet money is the only reason that you even go to work.   Look… you won’t obtain freedom by getting your money to work for you.   Every dollar that you put in a stock or 401(k) plan can’t leverage other people’s money...   ...for freedom, you must ethically employ other people’s money. That’s the mindset shift.   Real estate gives you limitless access to other people’s money - the bank’s, the government’s, and your tenants.   When you have enough passive income to meet all of your expenses, you can quit your job and be free!   Real estate is the generationally-proven way to build wealth and you don’t even need any degree or certificate.   That’s why I talk tirelessly on my podcast, and in videos, and articles and newsletters and wrote a book, and keep visiting the best geographic markets to find the right opportunities and properties and to meet the right people.   In this one life of yours, you can either be a conformer or you can build wealth.   Once you have time freedom, whether or not you want to go on to be rich from there - well, that part’s up to you.   This is an unselfish act - because when you do what you love, you’ll produce better results for both your family and society. You can’t help others if you’re poor.   Don't live below your means. Expand your means - with anything that you do in life.   The sad thing is, you have a choice in this - yet you’re selling your time and your soul for money. And that’s what breaks my heart.   Learn how to invest in real estate - the smart, patient, stable way.   Most people get used to “settling” in life. When you were 12 years old and thought about your adult life, I’ll tell you one thing that you never thought:   “Someday, I’m going to live a small life.”   Well, now that’s precisely what you’ve done.   Get real with me. How much did your employer pay you to quit your dreams?   Do you even remember what your dream was from when you were 12? I bet you’ve forgotten.   When your dreams die, you die.   Most people die at age 25. It’s just that they’re not buried until age 85.   Will you live before you die?   -by Keith Weinhold of Get Rich Education ___________________________________   See the “Live Before You Die” VIDEO when it is released by subscribing to our e-mail newsletter at: GetRichEducation.com   Also, follow me on Instagram:   @getricheducation   @keithweinhold   Facebook:   @getricheducation   YouTube:   Get Rich Education Channel   Twitter:   @GetRichEd   LinkedIn:   Keith Weinhold
January 9, 2019
If you work for a salary or a wage, then money is an important factor in your life. So there you are, making between $60,000 and $150,000 per year. You’ve got a good home, steady employment, you drive a decent car. Sometimes you even feel “comfortable.” This one precious life of yours is made up of time. Are you trading away that time for dollars at a job that you aren’t passionate about? Every morning, you might even separate yourself from those you love… in order to do this. With real estate investing, you don’t want properties so much as you want its passive income - income that you don’t have to work for. Now your eternal time vs. money dilemma is solved. If you don’t know why you urgently need financial freedom, do it so that you can “Be Yourself”. See… you wake up to a blaring alarm to get to your job - and that’s how your day starts. Then you’re programmed to tote company lines all week. Near the end of the work day, you’re playing another tireless charade - screwing around on the internet while you’re watching the clock like it’s a countdown timer so you can get out of there. that’s unethical. You aren’t being yourself… because you wouldn’t naturally do those things. Most employees aren’t driven by purpose, they’re driven by fear. Your growth can only begin when you peel back each layer of your vulnerability onion and get honest with yourself. The roots of change are nourished with genuineness. You’d rather quit your job and be a nature photographer or a Red Cross volunteer or a sports writer or travel. Even if your job is OK, wouldn’t life be better if you were job-optional? You haven’t created the time to feel peace, joy, happiness, giving, love and freedom in your life. You spend all this time learning how works works, zero time learning about how money works... yet money is the only reason that you even go to work. Look… you won’t obtain freedom by getting your money to work for you. Every dollar that you put in a stock or 401(k) plan can’t leverage other people’s money... ...for freedom, you must ethically employ other people’s money. That’s the mindset shift. Real estate gives you limitless access to other people’s money - the bank’s, the government’s, and your tenants. When you have enough passive income to meet all of your expenses, you can quit your job and be free! Real estate is the generationally-proven way to build wealth and you don’t even need any degree or certificate. That’s why I talk tirelessly on my podcast, and in videos, and articles and newsletters and wrote a book, and keep visiting the best geographic markets to find the right opportunities and properties and to meet the right people. In this one life of yours, you can either be a conformer or you can build wealth. Once you have time freedom, whether or not you want to go on to be rich from there - well, that part’s up to you. This is an unselfish act - because when you do what you love, you’ll produce better results for both your family and society. You can’t help others if you’re poor. Don't live below your means. Expand your means - with anything that you do in life. The sad thing is, you have a choice in this - yet you’re selling your time and your soul for money. And that’s what breaks my heart. Learn how to invest in real estate - the smart, patient, stable way. Most people get used to “settling” in life. When you were 12 years old and thought about your adult life, I’ll tell you one thing that you never thought: “Someday, I’m going to live a small life.” Well, now that’s precisely what you’ve done. Get real with me. How much did your employer pay you to quit your dreams? Do you even remember what your dream was from when you were 12? I bet you’ve forgotten. When your dreams die, you die. Most people die at age 25. It’s just that they’re not buried until age 85. Will you live before you die?   -by Keith Weinhold of Get Rich Education ___________________________________ See the “Live Before You Die” VIDEO when it is released by subscribing to our e-mail newsletter at: GetRichEducation.com Also, follow me on Instagram:   @getricheducation   @keithweinhold Facebook:   @getricheducation YouTube:   Get Rich Education Channel Twitter:   @GetRichEd LinkedIn:   Keith Weinhold
January 7, 2019
#222: Learn how to reduce vacancy and turnover cost in your property. Nationally, the rental vacancy rate is between 7% and 8%. If you increase occupancy from 90% up to 94%, that’s just 4%. But this could boost your CASH FLOW 20%. Increase occupancy by avoiding properties with functional obsolescence. Avoid high turnover cost by owning 1,500 sf single-family homes, not 2,800 sf homes. Learn more about investing in northwest Indiana’s 1% rent-to-value ratio turnkey property at www.GetRichEducation.com/Chicago Learn how to fit the property to the tenant. Find the best questions to ask both turnkey sellers and property managers. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Listen to this week’s show and learn: 02:52 How to find area vacancy rates. 04:01 How to reduce vacancy with your lease agreement. 05:18 Importance of occupancy. 09:45 How to start right. 10:50 Avoiding functional obsolescence. 13:42 Avoiding larger SFHs. 18:18 Remodeling trends. 20:45 Handling late rent payments. 22:30 Tenant-property fit. 26:22 Best questions to ask a turnkey seller. 28:56 How to interview a Property Manager. 35:16 Geographic arbitrage in northwest Indiana, “Chicagoland”. Resources mentioned: Connect with provider: GetRichEducation.com/Chicago Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey RE: NoradaRealEstate.com QRP: TotalControlFinancial.com Find Properties: GREturnkey.com
December 31, 2018
#221: You will be impacted. Learn the latest in rent increases, interest rates, affordability, inflation, asset values, tariffs, institutional money in real estate, the “Build-To-Rent” trend. Learn why large companies raise rents faster than “mom-and-pop” investors like you. Russell Gray of The Real Estate Guys and I share what we discovered at prominent conferences this month. He co-hosts the amazing Investor Summit At Sea. I’ve attended this unique, world-class real estate investing event. Get event details. Send an e-mail to: gre@realestateguysradio.com It could be the best investment that you make in 2019. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Listen to this week’s show and learn: 02:22 Tariffs effect on you. 05:48 Affordability. 09:05 Interest rates, inflation. 12:55 Small, but higher yields on savings accounts, CDs. 18:12 Institutional investors’ impact on you. 26:55 The “Build-To-Rent” trend in SFHs. 28:55 Buy vs. Rent your primary residence. 30:18 The special and transformative Investor Summit At Sea. 35:43 You could sit at a small table with Robert Kiyosaki. Resources mentioned: Investor Summit At Sea ShadowStats.com ChapwoodIndex.com Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey RE: NoradaRealEstate.com QRP: TotalControlFinancial.com Find Properties: GREturnkey.com  
December 24, 2018
#220: Financially-free vs. debt-free. Pick a side. In this interview and debate, I’m on the financially-free side. Two podcast hosts are on the debt-free side. Financially-free means doing what you want to do, when you want to do it. Debt-free means that you don’t owe anyone anything. Can’t you just pick both? Well, being on the debt-free side often means taking a step away from financially-free. Host Seth Williams and co-host Jaren Barnes run REtipster.com and the REtipster Podcast. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Listen to this week’s show and learn: 03:42 Example on why home equity is unsafe, illiquid, and ROI-zero. 05:30 Interview begins. 08:15 Average of the five. 10:02 Wealthy | Middle Class | Poor 12:46 Stop looking at property. 22:50 Is today a good time to buy real estate? 28:29 Financially-free vs. debt-free. 50:35 Reasons to avoid leverage. 52:58 Rising HELOC rates. 54:21 Long-term commitments. 58:27 “The Godfather Of Real Estate”, Bob Helms, and friend John Collins on debt. Resources mentioned: Seth Williams’ Website: REtipster.com Seth Williams’ Podcast: Here My Book: 7 Money Myths - Amazon My Book: 7 Money Myths - E-version Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey RE: NoradaRealEstate.com QRP: TotalControlFinancial.com Find Properties: GREturnkey.com  
December 17, 2018
#219: Earthquakes ravaged my property. I’m 100% uninsured. Why don’t I have earthquake insurance? There’s a big lesson in this for you no matter where you live… and it’s not what you think. You take great risk if you don’t invest in multiple real estate markets. First, I answer your listener questions: “Should my first property be an owner-occupied four-plex or a turnkey SFH?” “If you could start over again in real estate, what would you do differently?” A character named “Scarce Skip” is born. Early next year, Jim Rogers, Robert Kiyosaki, and Garrett Gunderson are scheduled to be on the show. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Listen to this week’s show and learn: 02:37 Should my first property be an owner-occupied four-plex or turnkey SFH? 12:50 If you could start over in real estate, what would you do differently? 16:14 Telling me I “got lucky” by starting with a four-plex. 19:48 “Scarce Skip” is born. 21:38 Earthquakes ravaged my psyche and property. 35:09 Five key lessons. 36:16 Seismic engineering and construction. Resources mentioned: 2018 Anchorage Earthquake 1964 Great Alaska Earthquake Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey RE: NoradaRealEstate.com QRP: TotalControlFinancial.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book  
December 10, 2018
#218: You can achieve 10.5% Cash-On-Cash Returns with debt investing. With Private Money Lending, you rent your money (not your property) to a borrower. Their real estate is your collateral. This way, you have greater passivity and stability than most equity real estate investing. You participate on the DEBT side rather than the EQUITY side of real estate investing. You have a fixed, predetermined rate of return. You are in first lien position. This means that if your borrower defaults, you can get paid back first. This is debt syndication. That simply means that a number of lenders make a loan on one construction project. Act and learn more: GetRichEducation.com/Lending Most lending durations are 12-36 months. Typically, that’s how long you receive monthly cash flow payments, with your principal returned at the end. Today’s guest, John Larson, Managing Partner at American Real Estate Investments, tells us about debt syndication in the Dallas-Fort Worth market. Medical and office space are often developed, with 25-35 lenders on $2M-$4M properties. If something goes wrong with a project, we discuss how you’re repaid. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Listen to this week’s show and learn: 03:35 Before making a loan on someone else’s real estate - here's what you must know. 05:24 First lien position, debt syndication. 08:12 Personal story of when I met John Larson. 10:25 Motivation for debt rather than equity investing. 12:48 Astounding strength of Dallas-Fort Worth, TX economy. 14:11 If something goes wrong, how does the lender (you) get repaid? 16:57 Who is debt investing ideal for? Cash, IRAs, 401(k)s. 21:23 How the developer identifies the right opportunity. 24:14 What if something goes wrong? 25:04 “Say I invest $100K, when and how am I paid?” 28:15 John is a new author. I wrote the book’s foreword. 31:39 See if Private Money Lending is right for you at GetRichEducation.com/Lending. Resources mentioned: Private Money Lending: GetRichEducation.com/Lending John Larson’s Book: Passive Income Guide Real Estate Cowboys Podcast Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey RE: NoradaRealEstate.com QRP: TotalControlFinancial.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book  
December 3, 2018
#217: Turnkey RE mistakes to avoid are discussed. Turnkey means “all-done-for-you”. You’re buying property already rehabbed, tenanted, and under management. You’ve outsourced work and sweat equity. Turnkey pros: less time, less rehab risk, instant income, built-in management. Turnkey cons: less rehab control, no sweat equity. Just because a company is called “turnkey” does not make them a good operator. I tell you how to reduce property repair costs. Today’s guests, Terry Kerr and Liz Nowlin of Memphis, TN’s Mid South Home Buyers, are exemplary turnkey providers. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Listen to this week’s show and learn: 03:34 Turnkey does not mean “completely uninvolved”. 04:12 Control. 07:22 Unethical operator tactics. 09:02 Inspections. 09:43 Management. 13:05 How to reduce repair costs - insurance claim, warranty. 14:56 Pros of turnkey. 19:49 Why Memphis? 24:14 Rent amount, occupancy rate. 26:53 Integrated business. 29:37 Extent of rehabilitation, management. 33:15 Guarantees. 37:12 Rent $750, purchase price $70,000. Resources mentioned: MidSouthHomeBuyers.com Field verification: WeGoLook.com Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey RE: NoradaRealEstate.com QRP: TotalControlFinancial.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book
November 26, 2018
#216: Hands-on real estate has its risks and rewards vs. passive investment. Learn about “scaling up” your portfolio into larger buildings. If you desire to build a large new construction project, you need financing, investors, contractors, and a team. Don’t do it alone. How do you afford all this? You can ethically take a Developer Fee for yourself. Our guest, Victor Menasce and I discuss the mindsets and actions around 10-plexes up to 200-unit properties. We also discuss: buying property on a corner, commercial financing, elevators & parking, new construction vs. rehabs, foundation issues, and mistakes to avoid when “going big”. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Listen to this week’s show and learn: 04:18 Victor Menasce Interview begins. 06:27 Commercial financing qualification. 09:10 Refinancing your existing residential property into commercial loans. 12:06 Operating 10-plex to 12-plexes. 14:59 Corner properties. 17:18 Adding elevators and parking. 22:59 How do you afford all this? 26:55 Building your team. 33:55 Underwriters vet your Property Manager. 35:45 Foundation issues. 37:49 ROI = Return On Involvement Resources mentioned: Victor’s Website: VictorJM.com Victor’s e-mail: victor@victorjm.com Real Estate Espresso podcast Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey RE: NoradaRealEstate.com QRP: TotalControlFinancial.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book
November 19, 2018
#215: The economic recession is inevitable. How are you positioned for it? Recessions are awful. Jobs are lost, careers are thrown off-track, families are disrupted, homes are lost. The U.S. is now in its second-longest expansion since 1857 (not a typo). It will end. I define a “recession”, WHEN the next one is expected, and what actually happens inside one. Next, I run the numbers and tell you about a recession’s destruction. 5-6 economic signals foretell the next recession’s timing. I discuss these signs. Learn how a recession could actually be good for you. Something is more important to you than the economy’s condition. I discuss. Learn actionable strategies to insulate yourself against recession. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Listen to this week’s show and learn: 02:25 Recession defined. 04:47 Timing of next recession. 07:35 Running the numbers on how a recession hurts you. 11:49 Five or six signals of a recession. 21:50 Actionable layer of insulation against recession: medical districts. 27:28 Perspective: other world problems. 29:18 Fears. 30:00 What YOU DO matters more than the economy’s condition. Resources mentioned: Videos: GetRichEducation.tv Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey RE: NoradaRealEstate.com QRP: TotalControlFinancial.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book  
November 12, 2018
#214: One U.S. real estate market is experiencing 6-9% appreciation, cash flow, rapid population growth, low housing prices, low property taxes, and zero state income tax. I visited the market earlier this year. In fact, I just bought two properties from them myself here. This area also has a low unemployment rate, proximity to great beaches, and pro-landlord law. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Listen to this week’s show and learn: 02:30 Summary of New Orleans Investment Conference. 04:23 Mark Skousen’s dividend-paying stock picks: MAIN, OHI, EPD, MSFT. 05:29 California’s defeated rent control measure. 08:14 Amazon will name two new HQ locations. 11:39 Tampa market discussed. 15:26 Hurricane insurance. Properties located inland, not in flood zones. 19:40 Finding the “sweet spot”. 24:21 Typical: 3 BR, 2BA, 1-car garage, backyard, 1,200-1,500 sf. Rent $1,100. Price $120K-$150K. 25:05 Management. 29:22 Timing of buying income property now. Learn more at GetRichEducation.com/Tampa Resources mentioned: Tampa property: GetRichEducation.com/Tampa Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey RE: NoradaRealEstate.com QRP: TotalControlFinancial.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book  
November 5, 2018
#213: Your tenants are businesses, not families, in commercial RE. Tenant screening is different than residential. You must vet your applicant’s industry viability and corporate finances. Leases often last 3 - 15 years in industrial, retail, office, and warehousing RE.   Single-Tenant vs. Multi-Tenant Commercial differs in risk, lease duration, more. A “big name” tenant means you must accept a lower investor return. Find the sweet spot. Tom Wilson, Principal of Wilson Investment Properties and commercial RE expert, joins us. Tom tells us how commercial has higher cap rates than multifamily today. Two myths Tom & I dispel: retail is dying, America does not manufacture anymore. Terms discussed: triple net lease, anchor tenant, credit tenant, commercial depreciation, tenant improvements (T.I.). I discuss brick-and-mortar retail vs. e-commerce. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Listen to this week’s show and learn: 02:37 Why you must find a compatible mix of uses. 05:03 Why Tom transitioned from residential to commercial. 09:53 How commercial RE is different. 13:57 Commercial vs. residential lease duration. 15:40 Vetting commercial tenants. 18:10 Triple-net lease, anchor tenant, credit tenant. 21:45 Is retail dying? 26:24 Myth: America does not manufacture anymore. 29:40 Tenant improvements (TI). 33:12 Commercial financing. 34:50 Depreciation. 39:02 E-commerce vs. brick-and-mortar. Resources mentioned: Wilson Investment Properties Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey RE: NoradaRealEstate.com QRP: TotalControlFinancial.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book
October 29, 2018
#212: Really? Yes. I unpackage it all. In fact, these are the words of the Top-Selling Personal Finance Author Of All-Time, Robert Kiyosaki. *[Complete transcript far below - you can follow along]*  Look, I have no savings account. I own no stocks, bonds, mutual funds, nor ETFs. I have no plans to pay off my home, though I could. Instead, it’s about durable passive cash flow. Either you can be conventional, or you can be wealthy. Pick one. I tell you how savers can be losers and debtors can be winners. Inflation amplifies this notion. Keep a high velocity of money. You wouldn’t tolerate a lazy employee, so why tolerate lazy money? Then I discuss how high real estate prices and higher interest rates will affect you. More Americans believe renting is cheaper than owning their own home. I tell you why your ROTI increases throughout your life. __________________ Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Listen to this week’s show and learn: 03:30 Convention says: “Save money and pay off your house before retirement.” 06:20 I have millions in debt. 08:46 How savers can be losers and debtors can be winners. 10:41 Inflation. 13:10 Debt and equity. 18:04 Mortgage rates should rise 1% in the next year - how this affects you. 23:08 How higher rates affect your tenant. 25:48 Today, more people think it’s wiser to rent than own their own home. 30:31 National homeownership rate. 31:06 Return On Time Invested. Resources mentioned: WSJ: Renting Cheaper Than Owning CNBC: Renting vs. Buying Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey RE: NoradaRealEstate.com QRP: TotalControlFinancial.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book   Complete transcript:   Welcome to Get Rich Education. I’m your host Keith Weinhold. “Savers Are Losers. Debtors Are Winners.” Could that be true? Well, that’s a quote from none other than the Greatest Selling Financial Author Of All-Time. We’re going to break that down.    and...    What do higher interest rates mean to your future as an investor? Today, on Get Rich Education.   Hey, welcome to Get Rich Education, I’m your host Keith Weinhold.   Savers are losers. Debtors are winners.   Really, how can something that sounds so absurd to most people - be true?   Well, those are actually the words of the Greatest-Selling Personal Finance Author Of All-Time - Robert Kiyosaki.   Let’s unpackage this paradox, “Savers Are Losers, Debtors Are Winners.”   Now, one night recently, I was invited to a housewarming party by my friend, Jeff. Jeff & I have done running races together for years…   ...he had just married, so Jeff and his wife had us and a number of friends over to “warm their new house”.   Jeff had a lot of friends at the party that I did NOT know, and so I ended up meeting and striking up a conversation with these two older men.     One of the two men was a retired Engineer, and the other one still had an active work life - to some extent - he told me - as being a mutual fund salesperson.   So...this was about to get really interesting.   Now, I often enjoy talking to people decades older than I.   As the three of us were standing around, I asked them how a younger person like me should prepare for retirement… just kind of to see what would happen.   I figured that their answer to me would be rather predictable… and it sure was.   And these guys don’t know what I do. I had just met them for the first time.   The first thing that they said, is, they told me to save money.   Right after that, the other guy added, “And pay off your house before retirement!”   Now, you probably know that the advice that they just dispensed to me is nearly the polar opposite of how I think about wise financial management - and achieving a good ROI, and managing your equity well.   I just sort of quietly kept eye contact with them as they told me to save and pay off my house.   Next, they asked me, well what do YOU do?   Now, it’s hard to explain to some people what I do, so - rather getting than detailed about that right away - I started replying to them by telling them…   ...well, I don’t HAVE a job. In fact, I quit my job years ago, because it took too much of my time.   Now - just between me & you - running Get Rich Education isn’t so much a job - but it is work. It’s work that I enjoy.   Anyway, moving on about my chat with these two older gentlemen, since they told me to SAVE money... I added that, I don’t even have a SAVINGS account actually.   And then I said: “As far as paying off my home by retirement - well, I do happen to own my home - though I often wonder if I would be better off paying rent instead.   In fact, if I did move, it’s fairly likely that I would become a renter, and not own again.”   But as long as do I own, I expect to keep my mortgage balance high into retirement age. In fact, if equity accumulates in my home, I’m always quick to yank it out.”   By now… this was piquing some interest in these two guys that I had told them this.   Since one of the guys was a mutual fund salesperson, I just respectfully added in that,   “Yeah, you know, I don’t own ANY stocks or bonds - or anything like them - no ETFs, no mutual funds.”   Now, I’ll just tell you - though that’s true, it’s likely that I’ll have some exposure to stocks again soon once that stock market feels more adequately valued.   Based on what I told them so far, maybe they were thinking that I couldn’t afford to be invested in stocks.   But anyway, by this time, I am demonstrating to these two guys that I am financially pretty divergent from the mainstream - and certainly far from their concept of financially secure.   They might have even been feeling a little sorry for me at this point.   Now, the next thing I told them, since we were on the topic of savings and debt - was just merely another fact in my life.   And this one was like I completely detonated a verbal bombshell right there in front of their faces - in Jeff’s living room - when I told them - “Yeah, actually, I have millions of dollars in debt that I’m frankly… never going to get paid off.”   At this point, the two older guys might have even wondered why our mutual friend Jeff invited me over to this house party in the first place.   Maybe they thought that it’s a wonder that I’m not homeless… or wondered if I own a car or ever go on vacations.   Well, I sure didn’t tell them that “Savers are losers, debtors are winners at this point.”     But I started to explain my investor life to them, without trying to tell them that they’re wrong, and without pros - hell-I-tie-zing or trying to get them to adopt my point of view..   I think I just opened them up when I told them, that, well, actually, I don’t want to accumulate equity in my home because it has no return, and it’s actually illiquid, and unsafe - and that I reinvest those dollars that aren’t in my home into cash-flowing real estate around the country - and beyond.   ...and that I have substantial RE income such that I don’t need a conventional day job.   The millions of dollars in debt could be paid off - and, in a sense - they really are paid off on my balance sheet since the equity across all the properties easily exceeds the debt balance incurred.   And that renting one’s own home often provides them with better cash flow than owning one’s own home...and and on.   Now, were the two older guys DATING THEMSELVES by telling me to save money, put money in a 401(k), and get a paid-off home? I guess some people would say they’re dating themselves if they’re thinking of dollars as money - back when there was still a gold standard.   But I don’t know that one is dating themselves simply by thinking that way - because there are still a ton of younger people - I’d say the majority - that think that saving and having a retirement account is THE way.   But no one ever got rich saving money… but many acquire wealth by investing it.   By the way, I like to think that I’m still too young to ever say or do something that dates myself.   In fact, I did all the dating of myself back in high school - because you see - I couldn’t get a girlfriend so I HAD to date myself. (Haha!)   See what I did there?   Well, you don’t listen to GRE for the humor - thank goodness.   Yes, when I got my high school diploma at age 17, I still looked like a 13 year-old, so there was no girlfriend, and dating myself was the only option, so..getting back here...   Savers are losers debtors are winners - is more sophisticated than one’s conventional notions of saving and debt.   When you talk about accumulating 50% of your assets in a savings account or CD that has an interest rate that yields you a return that’s one-quarter as much as the rate of inflation - that’s losing.   That’s the “losing” that we’re talking about here.   If you have substantial consumer debt that you have to pay yourself that’s tied to a worthless or depreciating asset - plus you have to pay back that debt yourself - and tenants aren’t doing it for you - THAT’S losing.   When Kiyosaki says, “Savers Are Losers, Debtors Are Winners”, he’s talking about how...   When he borrows money from the bank to buy a rental property, he effectively borrows money that SAVERS have first placed into the bank. Now he just arbitraged the savers low-yield dollar into his high-yield dollar.   Then on top of that, he gets tenants to pay the bank back over a period of time. And he gets the property.   That’s what I do.   “Savers are losers” criticizes the practice of saving as a way of accumulating wealth.   You can store your liquidity in something other than a savings account.   Now, with millions in good debt tied to cash-flowing real estate, why would I want to get involved with paying that down? I would only lose leverage.   Tenants and inflation are paying that debt down for me - that’s pretty great - but I need to pay attention to that because tenants paying down my debt for me actually means that it s-l-o-w-l-y makes me lose leverage too. Think about that.   Now, with inflation, this amplifies the “Savers are losers and debtors are winners” mantra.   Look, think of it this way.   Think about your best friend - a friend so good, that they would hypothetically loan you money. Which is actually the best way to lose a friend fast.     But let’s just say you borrow $10K from this great friend of yours.   Now you’re a debtor. Your best friend is the lender and you are the borrower.   This friend of yours is so nice and so trustworthy of you - and so gullible and “not inflation conscious” as well - that they tell you that you can pay them back the $10,000 that you borrowed in one lump sum 30 years from now, interest-free.   30 years from today, in the year 2048 / 2049.   Sticking with the hypothetical here, you’re a person of your word and you pay them back their $10,000 thirty years from now, just like they asked.   At a 4% inflation rate over those three decades, their $10,000 just had its purchasing power diminished to $3,080.   NOW, can you see how savers are losers and debtors are winners?   Remember, you are taking out interest-free loans when you buy cash-flowing real estate. How is it interest-free - because your tenant pays the interest. That’s why it’s interest-free to you.   Of course, they’re also paying down your principal on top of that - and some cash flow on top of that yet - so it’s a deal that’s substantially better for you than when you struck the deal with your best friend and you had the benefit of using their $10K for thirty years.   Leveraged, cash-flowing real estate makes this even better for you. It’s better than the deal with your best friend. (Or former best friend now that you borrowed money from him.)   Inflation's winners are any form of debtor, particularly governments. The losers are those with cash holdings, bonds, pension savings and welfare claimants.   Most debtors are actually unintentional winners. Most debtors don’t understand this inflation- profiting benefit that makes them winners.   That’s why I practice equity harvesting from my home and other properties. I make equity transfers, which do, in fact, position me for more leverage and debt - at the same time it boosts my cash flow.   This reinforces the velocity of money concept too. I’m practicing keeping my money moving - that high velocity of money - like we’re supposed to keep.   Realize that in your home - your primary residence - when you pay down principal - you convert your cash to your equity monthly.   When you convert your cash into equity that way, you’ve just transitioned from a higher use dollar of yours - because it had been liquid - into a lower use dollar of yours - because not it’s illiquid - it’s trapped as equity.   A dollar is not a dollar is not a dollar. Each dollar in the asset column of your net worth statement could have a different value, for that very reason.   Now in a rental, consider that your TENANTS’ cash flow becomes your equity. That’s a substantially better deal.   Equity that accumulates in a home is much like money sitting in a ceramic piggy bank on your bookshelf, gradually being eaten away by inflation.   Instead, keep it moving. Keep that velocity. Don’t let it get lazy.   Lazy money is like a lazy employee. If you’re someone’s boss and you’ve got a lazy employee, why would you tolerate their late show-ups and two-hour lunch breaks?   You wouldn’t tolerate lazy money just the same way you wouldn’t tolerate a lazy employee.   So, it’s about repositioning dead money, underperforming money.   You sure wouldn’t keep paying a DEAD employee!   If you put $20K down into your rental SFH years ago, but now you have $50K equity in it, you have to ask if you would re-buy it with $50K of equity in it.   You probably wouldn’t! If you don’t hold up your leverage ratio, then your RE ROI will soon approach that of a government bond! Your ROE drops, drops, drops over time.   In this context, savers are losers. Debtors are winners.   So… I probably got the two older guys at Jeff’s party thinking differently if nothing else.   But most people would really rather be affirmed rather than informed.   Information challenges people. Affirmation comforts people.   Some people just want to hear whatever fuels their confirmation bias. Whatever fuels their confirmation bias is the easiest thing to hear.   Well, now inflation is on the uptick - that’s a long-term positive trend for leveraged real estate investors.   But interest rates are also on the uptick, meaning that things aren’t QUITE as good for debtors.   In fact, the last time that macroeconomist Richard Duncan was here on the show, he told us why there’s a positive correlation: higher inflation means higher interest rates.   So let’s talk more about what higher interest rates mean to your future as a real estate investor - or even as a homeowner. That’s next. You’re listening to Get Rich Education.   Welcome back to Get Rich Education.   Mortgage interest rates are now about 1% higher than they were one year ago at this time.   In fact, there have been 8 quarter-point increases over the last three years.   Now, among other things, these rate increases have proven to me that the future rate increases expected really are going to happen.   In fact, it’s not what I think, it’s what the Fed has come out and SAID. They plan to raise rates one more time here at the end of THIS year, and 3 more times next year. Likely a quarter of a point each time.   So therefore - we don’t have to try to anticipate the future, at least, this very open Fed is TELLING us just what they plan on. They didn’t always do that.   So rates could very well be 1% higher by this time next year.   Keeping some historical perspective, stay mindful that over the nearly 50 years that Freddie Mac has tracked rates, which is since 1971, 30-year loans have seen an average of a 7.7% mortgage interest rate, which might be more like 8.7% for a rental property.     Today, you can still get a primary residence loan for about 5 and an income property loan at about 6.   When rates are rising, investors have a sense of urgency to act and close on deals - and we expect to be in a rising rate environment for quite a while.   That’s why I have a sense of urgency to act now.   It’s when rates fall that investors feel the opposite way - they get a sense of complacency - not urgency - but complacency - because they feel like if they wait a few months, rates are going to be lower.   What else do higher interest rates mean?   Well, this matters...as you know how I’m always telling you that you should regularly think about how your tenant - or your prospective tenant - is thinking.   Housing prices rose starting in 2010 or 2011. Now, interest rates have joined in, beginning their rise in 2016 / 2017.   Of course, that begins the crimp the cash flow for new buys that you make.   Well, that crimps affordability for others. This hurts the homebuyer and especially the aspiring first time home buyer.   When renters cannot get into buy something - with this worse affordability - this forces them to stay in renter the pool.   Therefore, that increases the occupancy rate and often increases the rental amount that you can charge as well.   Higher interest rates increase the demand for rent.   So when mortgage interest rates go up, rents go up, although that’s not an immediate cause-and-effect. There is some substantial lag time there - a lag time until rents increase.   And housing prices have risen more than wages as well, meaning that fewer and fewer people can form down payments to BUY a house.   So, that’s some of the good news for real estate investors with rising rates.   How about more bad news with rising rates - there are some metro markets where higher real estate prices and higher interest rates have made cash flow with a 20% down payment nearly impossible...where those numbers worked five years ago or even 2-3 years ago.   The best metro markets to invest in change over time. That’s why we recently added two markets at GREturnkey.com - the Tampa Bay market and the northwestern Indiana market - which is actually the eastern fringe of Chicagoland.   Returns have shrunk in some places. Let me ask you, would you invest if you knew you were going to get, say a 4% CCR on a property or would you not?   If you would, you might figure that with the Five Ways Real Estate Pays You, then maybe you still can’t make a better total passive return anywhere than with 1 to 4-unit income property.   If appreciation on your income property slows down to, say 4%, well, at 5:1 leverage, that’s 20% leveraged appreciation.   Plus your 4% CCR.   Plus your principal paydown yield that the tenant makes for you as another 4%.   Plus 5% from tax advantages.   Plus just 3% from inflation-profiting. That would still be a 36% total rate of return for you when you add up all 5 profit centers.   So, we’re TALKING about investing in today’s higher interest rate environment.   That is, your perception and your reality as an investor.   Let’s talk about that customer of yours’ perception and reality in an arena of higher prices and higher interest rates.   Yes, that customer of yours, that tenant that faithfully shows up inside your brick-and-mortar business every day - called a rental unit - and helps make those “up to” Five Ways possible for you.   This 2-minute clip from a recent CNBC broadcast - is about what society thinks about renting their home versus owning their home. It’s Diana Olick, and then a couple male CNBC commentators comment at the end.   [2-minute CNBC video]   So that’s evidence that more people think it’s wiser to rent their home than buy their home as - you heard it there - the monthly cost of homeownership has risen 14% in the last year - but rents have only gone up 4% in the last year.   What a comment from CNBC’s Diana Olick there - suggesting that it’s increasingly wise to be a renter of your own home because it’s less costly than owning your own home - and then reinvest that difference in income properties that you rent to others.   Dang - Diana really gets it - that might be the smartest comment I’ve ever heard on that show...and I don’t often give a shout out to CNBC.   That was just really interesting wording there with the word “investment” - there in that clip - about how people feel that renting their own home is a better INVESTMENT than buying their own home.   This is good news for us real estate investors that want lots of renters and rental demand.   Now, just last week in the Wall Street Journal, an article was published titled:   Big Jump in Americans Saying Renting Is Cheaper Than Owning Then the subtitle reads: Freddie Mac data shows 78% of people now say that renting is more affordable than owning   I never would have thought that THAT many people would say this. But, here’s what the article says:   More than three-quarters of Americans now view renting as more affordable than owning a home, the latest sign that rising mortgage rates and higher home prices will continue to pressure home sales.   Some 78% of people now say that renting is more affordable than owning, according to survey data released Tuesday by mortgage company Freddie Mac . That is up 11 percentage points from only six months ago. (So, translation is that six months ago, 67% of people felt that renting was more affordable than owning, now, remarkably, 78% say this.) Back to the article: The survey also indicates that demand for for-sale housing could remain soft in the coming months. Some 58% of renters now say they don’t currently have plans to buy a home—up from 54% in February, according to Freddie Mac. Demand for rentals swelled after the recession, as millions of families lost their homes to foreclosure and tight credit made it difficult for young people to buy homes. Rents rose by double-digit percentages in many cities and the share of families who couldn’t afford their rent swelled to record highs. Meanwhile home prices plummeted and, for those who could qualify for mortgages, it was a great time to buy. But this year, that dynamic has reversed. Rent growth has slowed in line with inflation in the last few quarters, as new rental supply hits a three-decade high. At the same time, home prices continue to grow significantly faster than incomes and inflation and mortgage rates have risen nearly a percentage point from the beginning of this year. That has made it significantly more expensive to buy a home. David Brickman, president of Freddie Mac and the head of its multifamily division, cautioned that renting remains unaffordable for many families. But buying lately has become even more unaffordable. “It’s the worst of both worlds,” Mr. Brickman said. Two-thirds of renters say they have had difficulty affording their rent at some point in the past two years, according to the Freddie survey. Nearly nine in 10 renters in what Freddie deems “essential” fields like health care and education say they have had significant struggles to pay rent during the past two years. Mr. Brickman cautioned - and again Mr. Brickman is the President of Freddie Mac  and head of its multifamily division - he cautioned that if more people decide to continue renting that could eventually reverse the current dynamic and make rents once again begin to rise quickly. “I do worry that it may be short-lived, that it’s some reaction to rising rates, but the underlying demographic trends are not slowing at all,” he said. That’s the end of the Wall Street Journal article published just last week, so an interesting article there.   Remember that national home ownership rates peaked in 2004 at 69%, and bottomed out at 63% in 2015. In 2018, they are only slightly above that low, at 64%.   So, that should get you caught up on the state of the real estate market from the perspective of higher prices, higher interest rates, a little bit higher inflation...but still not all that high, and more people desiring to rent from you than to own their own home.   You’re going to live in an ever-shifting real estate market throughout your life, of course, and I want to remind you of a real positive with all this.   And it has to do with your ROTI - your Return On Time Invested with real estate.   Your ROTI goes up throughout life! It gradually increases as you’re constantly teaching yourself lessons - and you’re getting the lessons faster in your life… the more that you act.   Ten years ago, people learned that buying real estate for speculative capital gains can backfire badly.   Well, then you’re going to get a better Return On Time Invested going forward because you’ll forever tell yourself, “I wouldn’t invest solely for appreciation again.”   At some point, your set of experiences and accumulation of time in real estate will probably tell you, “I wouldn’t self-manage again.”   Maybe you’ll learn, “I wouldn’t hire a Property Management company like that ever again because I can see that they makes extraneous work for themselves in my property & my maintenance costs rack up needlessly.”   Maybe your “Return On Time Invested” will increase as you learn that using 5% of your gross rents as a long-term maintenance expense number is too low…   ...or you wouldn’t use a home inspector that’s biased like that and doesn’t want to beat up on the provider or seller enough.”   Your ROTI increases throughout your investor life - and that’s one rate of return...that’s really...pretty...predictable.   I’ve got to tell you that I really appreciate that you value listening to me every week. You’re listening to someone that’s doing it - that’s actively investing in real estate - and sometimes right alongside you.   Learn from somebody that's doing it.   Who do you get your real estate investing information and mindset from? Your parents, or a traditional educator, or someone that's actually been there?   I had a lower middle class upbringing in Appalachia, USA. I do not own an economics degree, no MBA, no business degree at all - nor does my family. I have no RE or entrepreneurship in my family background either. My degree is a Bachelor’s in Geography and Regional Planning.   More importantly, I’m a 16-year investor and spent five of those self-managing my property (uhhh...time that I’ll never get back), and then I realized that the real $ are made by understanding economic concepts specifically applied to investment RE - that’s the major wealth producer.   It’s not replying to tenant requests and fixing broken stuff. The ROTI is simply too low.   And I’m happy to say that I will be back on Forbes RE Council in 2019 - next year - and continuing to write articles for Forbes.   Don’t forget to turn your clocks back one hour this weekend. Gosh, Daylight Saving Time is some nonsense.   Even the name is offensive itself - they named it Daylight Saving Time - but in the history of the world, this has never saved one second of daylight.   It needs to be called what it is - it’s Daylight Shifting Time - daylight is only shifted, not saved.   Nothing has been saved, but our time has been wasted. It gets wasted twice a year.   Maybe the only good news about DST this year is that it means we’ll all have one more hour to spend this weekend at the New Orleans Investment Conference in New Orleans, Louisiana.   Yes, in a few days I’m leaving one great American city - Anchorage to go to another one, New Orleans.   I hope to see you there for a little Meet & Greet both this coming Friday AND this coming Sunday at 11AM each morning at the AgroNosotros booth, Booth #111.   It’s pretty likely that I’ll lift weights or go running outdoors a couple mornings while I’m there there so maybe you can join me there as well.   If you’re listening to the podcast version of Get Rich Education, be sure to SUBSCRIBE on your podcatching device.   By touching the “Subscribe” button, that’s how you will be sure to never miss any episodes. I would be grateful.   I’m your host Keith Weinhold. See you in New Orleans. Don’t Quit Your Daydream.
October 22, 2018
#211: Learn from Rich Dad Real Estate Advisor Ken McElroy. We discuss debt mindset, cash flow, how to manage your team, how to vet property managers and contractors, screen tenants, how to avoid bad partnerships. Ken owns $1 Billion worth of apartments. He needs to place $70M-$80M worth of cash soon, and trade $300M of real estate the next three months. Don’t say: “I can’t afford it.” Ask: “How can I afford it?” Your financial income will never exceed your self-concept. Overcoming your aversion to debt leads to wealth. Cash flow vs. capital gains investing discussed. See Ken’s instructional videos at kenmcelroy.com/videos. __________________ Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Listen to this week’s show and learn: 03:55 Mindset and self-concept. 09:05 Debt. 13:20 Cash flow vs. capital gains. 20:20 Paying taxes. 25:45 Partnerships: business, contractors, tenants, PMs, employees. 29:50 How to vet a Property Manager. 32:45 Vetting contractors. 37:52 Screening tenants. 39:40 Ken’s instructional videos at kenmcelroy.com/videos. Resources mentioned: Ken’s website: KenMcElroy.com Book: The Power Of Now Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey RE: NoradaRealEstate.com QRP: TotalControlFinancial.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book
October 15, 2018
#210: What you expect of yourself is exactly what you’ll end up getting. Learn how to set up a life full of options, not obligations. If you have an undesirable job and think you can’t switch to a happier, lower-paying job, I tell you how to. How can you justify living a life where you celebrate when every week is over? I update you with an asset class price whiparound: real estate, stocks, oil, gold, interest rates, wages and unemployment. Next, I answer four of your listener questions: Should I put 15% or 20% down payment on a property?   After buying ten properties, what’s next?   Mistakes to avoid with the 1031 Exchange?   Should I self-manage or hire professional property management?   I bring you today’s show from Anchorage, AK. __________________ Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Listen to this week’s show and learn: 03:00 You Become Your Expectations. 11:02 Asset class whiparound. 12:35 15% vs. 20% down payments on income property. 17:33 After buying ten properties, what’s next? 23:12 Mistakes to avoid with the 1031 Exchange? 27:20 Self-management or Professional property management? 38:18 I’m a real estate investor first, and buy my properties from GREturnkey.com. Resources mentioned: Properties: GREturnkey.com Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey RE: NoradaRealEstate.com QRP: TotalControlFinancial.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book
October 8, 2018
#209: You’re getting taxed in sneaky ways - both everywhere you look, and also where you DON’T look. Americans spend more on taxes than housing, food and clothing costs combined. Real estate has the best tax shelters - tax-deferred exchanges, rent income exempt from Social Security and Medicare tax, and tax depreciation sheltering more of your rent income. Today’s guest, FOX News and CNN TV Contributor Kristin Tate, uncovers hidden taxes that you don’t even know that you’re paying. Stealthy taxes are killing you. They’re often disguised as fees, licenses, and surcharges. Once citizens pay a new tax, they get used to it, and just keep paying it. Housing taxes, transportation taxes, utility taxes are often hidden. You learn where. Your tax revenue often goes to a “general fund”, not where it “should”. Graduated Tax vs. Regressive Tax - definition, relevance. Sin taxes. We discuss what you can do to beat excessive taxation. Kristin’s book, “How Do I Tax Thee” is on Amazon. I bring you today’s show from Locarno, Switzerland. __________________ Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Listen to this week’s show and learn: 02:24 Real estate has the best tax shelters. 06:01 Venice, Italy. 10:02 Don’t cheat on your taxes. 11:03 Investing in cash-flowing Chicagoland and Tampa Bay. 14:56 “Read my lips. No new taxes.” 16:29 Kristin Tate interview begins. 19:10 Stealthy taxes. 20:50 Once citizens pay a new tax, they get used to paying it. 22:20 Housing, transportation, utility taxes. 28:03 Your tax revenue often goes to a “general fund”, not where it “should”. 36:19 Graduated vs. Regressive tax. 42:13 Sin taxes. 45:27 What you can do. 49:11 Famous quotes about taxes. Resources mentioned: Book: “How Do I Tax Thee?” KristinBTate.com GetRichEducation.com/Chicago GetRichEducation.com/Tampa Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey RE: NoradaRealEstate.com QRP: TotalControlFinancial.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book
October 1, 2018
#208: With a $55,000 annual contribution limit, the QRP gives you checkbook control of your IRA. You can invest your retirement money in nearly anything. Retirees are suffering with 401(k)s and IRAs. QRPs provide a better way. Damion Lupo tells us how. QRPs avoid the UBIT tax. Self-directed IRAs do not. Learn more from Total Control Financial by texting “QRP” (ALL CAPS) to 72000. QRP stands for Qualified Retirement Plan. You can invest in nearly anything with your retirement funds, get a $50,000 line of credit, and creditor protection. With Self-Directed IRAs, you might have to pay tax on leveraged gains; QRPs are exempt. With QRPs, you can invest in residential property, metals, cryptocurrency, options, tax liens, notes, vacant land, mobile home parks, more. You can set up a QRP with less red tape than a Self-Directed IRA. __________________ Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Listen to this week’s show and learn: 02:51 Pensions replaced with Defined Contribution Plans. Retirees suffer. 06:25 Gold and silver. 10:52 I make a simple break down of 401(k)s and IRAs. 13:58 Damion reminds you: don’t plan to be poor. 15:26 UBIT is ugly. QRPs avoid it. 17:34 QRP’s $50,000 line of credit. 21:55 What can you invest QRPs in? Nearly anything. 26:35 Creditor protection. 28:26 $55K annual contribution limit for single; $110K for married couples. 31:31 Custodian, trustee. 34:34 Less red tape than a SDIRA. 39:17 Get Rich Education perspective on the QRP. Resources mentioned: Text message QRP (ALL CAPS) to 72000 New Orleans Investment Conference Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey RE: NoradaRealEstate.com QRP: TotalControlFinancial.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book
September 24, 2018
#207: I am a spender. Our guest is a saver. Spenders defer financial wealth. Savers defer quality of life. This interview takes a sweeping turn when our guest tells us he’s “very frugal”, because I’m not. Hear my “The Spender vs. The Saver” commentary in the last ten minutes of the show. The creator of one of the world’s most successful real estate investing apps, Anton Ivanov and the DealCheck app, joins us today. I’ve used myself. It’s great, and free. For 25% off the optional premium upgrade, use Discount Code GRE25OFF. From his San Diego homebase, Anton has grown his nationwide portfolio to 35 units and $11K of monthly cash flow. He owns in Kansas City, Birmingham, and Atlanta. The Spender vs. The Saver: there is no right or wrong. This is why it is called PERSONAL finance. __________________ Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Listen to this week’s show and learn: 02:05 Infographic: 5 Ways Real Estate Investors Get Paid. 04:43 Anton Ivanov’s investor story: duplex, turnkeys, apartments. 19:35 The Spender vs. Saver. 31:18 DealCheck phone app: analyze cash flow, cap rate, CCR, etc. Integrates with MLS. It’s free. For 25% off a premium upgrade, use Discount Code GRE25OFF 39:21 My commentary: The Spender vs. The Saver. Resources mentioned: DealCheck app: Code GRE25OFF Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey RE: NoradaRealEstate.com QRP: TotalControlFinancial.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book
September 17, 2018
#206: Student loan debt vs. real estate investing. Where should you devote your dollars? You get answers. I tell you how to eliminate investing “uncertainty”. The “BRRRR” real estate investing strategy is discussed - pros and cons. It’s a hybrid between flipping and buy-and-hold. Turnkey vs. BRRRR real estate investing. I cover the history of mortgages from the 1930s to today. FDR and World War II had substantial impact. Fannie Mae was born in 1938. Freddie Mac didn’t begin tracking mortgage rates until 1971. 2000 was the last year that mortgage rates (30-year FRMs) exceeded 8%. The median 30-year mortgage rate since 1971 is 7.7%. Let’s meet in-person at the New Orleans Investment Conference. __________________ Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Listen to this week’s show and learn: 02:13 Student loan debt vs. real estate investing. 07:53 The BRRRR Strategy: pros and cons. 17:00 Turnkey vs. BRRRR real estate investing. 19:44 History of mortgages: 1930s to today. 26:33 The median 30-year mortgage rate since 1971 is 7.7%. 28:56 Let’s meet in-person at the New Orleans Investment Conference. Resources Mentioned: New Orleans Investment Conference Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey RE: NoradaRealEstate.com QRP: TotalControlFinancial.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book
September 10, 2018
#205: A dollar is not money. Money serves three purposes. It is a:   #1: Medium Of Exchange   #2: Unit Of Account   #3: Store Of Value There is an opportunity for you to invest in cash-flowing real estate in Cleveland (link). After discussing the roles of money, currency, and real assets, we discuss the Cleveland, Ohio real estate investing market. Generally, if a place is too desirable to live in, it is a bad place to invest in long-term rental real estate for cash flow. But it must be attractive enough to retain residents. Cities must reinvent themselves when manufacturing wanes. Cleveland has doubled-down on medical technology and has become a world leader in health care. Eight Fortune 500 companies are headquartered here. The Cleveland Clinic is a world health care leader. Neighborhood selection, pockets for long-term appreciation and cash flow discussed. Typical in Cleveland: 3 BR / 2 BA, $700 - $1,000 rent, $80,000 price, 2% property tax. This provider: financing-friendly, in-house management, guarantees, annual inspection, give tours. __________________ Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Listen to this week’s show and learn: 02:06 Money and currency roles. 04:08 Real assets. 05:53 “Too desirable” to live in a place. 10:18 Medical and technology replaces manufacturing. 11:00 Why companies are spending more to renovate homes. 16:24 Cleveland culture. 19:12 Fortune 500 companies - eight headquartered in Cleveland. 21:49 Forbes named Cleveland the top cash-flowing rental market. 24:22 Why SFHs? 29:58 Typical: 3 BR / 2 BA, $700 - $1,000 rent, 2% property tax. 32:04 Provider, financing-friendly, in-house management, guarantee, annual inspection. 35:45 Interested? Get the investing report at www.GetRichEducation.com/Cleveland. Resources Mentioned: GetRichEducation.com/Cleveland The Real Estate Guys Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey RE: NoradaRealEstate.com QRP: TotalControlFinancial.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book
September 3, 2018
#204: Your real estate ROI could be a billion dollars. Even if your property never appreciates nor pays you the other four ways, I discuss a little-considered way where you’re STILL profiting. Real estate price and value are different. “Return ON Equity” vs. “Return FROM Equity” discussed. Are you leveraging appreciation or leveraging inflation? Inflation assists leveraged real estate investors 3 ways: asset inflation, debt debasement, and higher cash flows. Real estate flipping vs. investing is discussed with Matt Theriault. Matt and I discuss the mindsets around passive income vs. active income. The importance of markets and teams. __________________ Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Listen to this week’s show and learn: 02:13 Your ROI. 03:54 If your property never appreciates or pays you, here’s how you profit. 07:08 Leveraging inflation, not appreciation. 13:10 Cleveland cash-flowing property. 15:33 Matt Theriault joins us. 22:25 Retirement. Piles vs. streams of income. 29:12 Flipping vs. Investing. 31:08 Markets and teams. 35:42 You must act. Resources Mentioned: Warren Buffett Quote Matt Theriault Website Cleveland Turnkey Real Estate Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey RE: NoradaRealEstate.com QRP: TotalControlFinancial.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book
August 27, 2018
#203: Doctors’ debt is $200K-$600K+ after medical school. Should they pay it off or invest in real estate instead? Most view doctors as “successful” - they help people and earn more than most. Dr. Buck Joffrey joins us. Are doctors “too academic” to be concerned with investing? They miss out. Get his great Wealth Formula Roadmap Course. Young doctors often ask veteran doctors what to do with their money. They get referred to a typical financial advisor. “The Rule Of 72” is misleading. Mutual fund investors often make zero return. It is impossible to build substantial wealth without (good) debt. That is, debt that’s outsourced to others, like tenants. I give a concrete example of how debt creates wealth for you with a $1M building where you make a small down payment. Inflation dilutes the weight of your debt. Wealth Formula = Mass x Velocity x Debt Dr. Joffrey’s first apartment building was bought based on “a promise” - a pro forma on a Class D building. It was awful. _______________ Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths _______________ Listen to this week’s show and learn: 02:10 My chat with a new medical doctor and his $450K debt. 06:00 Dr. Buck Joffrey interview begins. 09:05 Are doctors “too academic” to be concerned with investing? They miss out. 12:15 When you have a Dad that’s in real estate investing. 14:35 “The Rule Of 72”. 16:43 Flawed conventional wisdom. 20:00 Debt. 24:58 Inflation-profiting from debt. 28:39 The mathematical wealth formula. 30:13 Dr. Joffrey’s first apartment building was a loser. 31:50 Wealth Formula podcast. 33:47 Dr. Buck Joffrey’s video course: Wealth Formula Roadmap. Resources Mentioned: Video Course: Wealth Formula Roadmap Book: Cashflow Quadrant Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey RE: NoradaRealEstate.com QRP: TotalControlFinancial.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book
August 20, 2018
#202: $108,000 was my highest salary from my day job. I discuss. There’s high housing demand and low supply. Then why are homebuilders slowing down? You get answers. SFHs comprise 30-35% of all U.S. rentals. 90% of rental SFHs are owned by “mom & pops”. Learn how to exploit real estate’s geographic arbitrage. How are you living? Metaphorically, are you using water buckets or a sprinkler system? Meet me in-person at the New Orleans Investment Conference, Nov. 1st to 4th. I made an infographic to send you: “The 5 Ways Real Estate Investors Get Paid”. _______________ Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 02:12 Supply vs. Demand and “Capacity To Pay”. 03:59 Homebuilding slowdown. 10:40 SFHs comprise 30-35% of all rentals. 90% of rental SFHs are owned by “mom & pops”. 13:02 Geographic arbitrage. 16:39 Water Buckets vs. Sprinkler Systems. 19:06 Security vs. Freedom. 23:48 Meet me in-person in at the New Orleans Investment Conference, Nov. 1 - 4th:  https://goldnewsletter.com/wp-content/uploads/2018/07/NOIC_2018_GRE.html 27:32 Infographic: “5 Ways Real Estate Investors Get Paid.” Resources Mentioned: Reuters: Home Sales Sag, Prices Rise Meet Me In New Orleans, Nov. 1st - 4th Book: “How To Be In The Top 1%” Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey RE: NoradaRealEstate.com QRP: TotalControlFinancial.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book
August 13, 2018
#201: Your down payment, credit score, reserves, debt-to-income ratio necessary for an income property loan are discussed. Ridge Lending Group President and CEO, Caeli Ridge, also tells you 15% of appraisals come in low, 80% right on, and 5% above the contract sale price. Can a bank call your mortgage loan payment due-in-full anytime? Short answer is “no”. We discuss. Learn some good options after your first 10 loans (single) or 20 (married) are exhausted. We discuss the effect of higher mortgage interest rates on your cash flow. HELOC interest is not always tax deductible. Be mindful that Trump doubled the standard tax deduction threshold. _______________ Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 02:58 Receiving sale price discounts for paying cash rather than financing property. 08:48 Two sets of underwriting guidelines: loan spots 1-6, loan spots 7-10. 18:40 Can a bank call your loan due-in-full anytime? 22:50 Max. LTVs on cash-out refis. 26:56 Portfolio financing beyond ten loans: 6.375% interest rate. 31:00 Higher interest rates than last year. 33:27 Appraisals. 36:26 Underwriting guidelines: too loose or too tight today? 39:15 Phone 855-74-RIDGE | www.RidgeLendingGroup.com | info@ridgelendinggroup.com 40:23 HELOCs on income property: difficult to find, 65% LTV. 41:27 Tax-deductible interest, standard deduction threshold. Resources Mentioned: Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey RE: NoradaRealEstate.com QRP: TotalControlFinancial.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book
August 6, 2018
#200: Discover your “why” in life and real estate. You should have a selfish why and an altruistic why in real estate investing. I summarize today’s economy and asset values: GDP growth, real estate, stocks, interest rates, cryptocurrency, oil, dollar, precious metals, The Fed. As a Forbes writer, I’m going on offense, not defense. You hear the audio clip: “7 Minutes To A Wealthy Mindset”. Enjoy this milestone 200th Episode - the Bicentennial Installment of GRE! _______________ Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 00:52 Up and down market cycles. 02:02 You live a great life. 04:33 Your “why”. 10:02 Why I’ll never paint a wall or mow a lawn again. 14:58 Programming changes. 16:07 Today’s economy, GDP, asset values. 25:12 At Forbes, I’m going on offense, not defense. 26:52 Audio clip: “7 Minutes To A Wealthy Mindset” video. Resources Mentioned: Videos: GetRichEducation.tv My Forbes article: Home Equity Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Apartment Investor Mastery: BradSumrok.com Turnkey RE: NoradaRealEstate.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book Education: GetRichEducation.com
July 30, 2018
#199: He thought this show was dumb, debt was bad. He originally listened to laugh rather than for financial education. In 2009, Get Rich Education (GRE) listener Dustin Jones suffered a personal bankruptcy as a result of high real estate commercial debt tied to properties with declining value. His goal was to be debt-free by age 40. In 2015, that all changed when he began listening to Get Rich Education. He learned that financially-free beats debt-free. Now Dustin embraces debt again by strategically turning equity into cash flow. He has $781,000 in debt, and hopes to have $1.1M to $1.2M by year-end. Isn’t that counterintuitive? It’s a fascinating story of tragedy, resilience, learning, strength, and self-belief with remarkable Michigan-based GRE listener Dustin Jones. _______________ Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 03:47 Building a real estate portfolio in Flint, MI. 05:48 Declining property values and rent incomes. 08:46 Bankruptcies. 09:36 Calling notes due generally doesn’t happen on performing, residential loans. 12:52 Dustin thought debt was dumb. 13:56 Finding GRE in 2015 and laughing at how it first sounded like nonsense. 19:00 Applying abundant concepts. 21:33 Buying 5 properties in Houston, Memphis, and Montgomery. $1,250 cash flow. 25:46 Dustin’s other investments. 27:47 Pitfalls with providers, inspections. 32:28 Meet Dustin and I in-person Sept. 6th to 9th! Learn more at: www.GetRichEducation.com/Belize. Resources Mentioned: Dustin’s e-mail: delk25@gmail.com Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Apartment Investor Mastery: BradSumrok.com Turnkey RE: NoradaRealEstate.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book Education: GetRichEducation.com
July 23, 2018
#198: The five ways real estate pays you, your monthly cash flow and using HELOCs are three listener questions that I answer today. Home inventory is so low that machine learning and artificial intelligence are being used to predict when someone is likely to sell. ATTOM Data’s Daren Blomquist tells us where today’s housing values are compared to pre-recession peaks. Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 00:57 How would $1,500 monthly cash flow help me? 04:00 The “5 Ways” real estate pays you. 06:40 HELOCs. 26:16 Daren Blomquist interview begins. 29:00 Machine learning, artificial intelligence in real estate. 35:00 Higher mortgage interest rates = higher home prices. 38:18 National median housing prices vs. “pre-crash” highs. 40:30 Housing values in “stable” markets. 43:38 Get Rich Education TV. Resources Mentioned: www.attomdata.com Get Rich Education TV: GetRichEducation.tv Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Apartment Investor Mastery: BradSumrok.com Turnkey RE: NoradaRealEstate.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book Education: GetRichEducation.com   Hey, welcome in to Get Rich Education, Episode 198. I’m your host Keith Weinhold and I’m going to answer a few listener questions today… ...about your cash flow, your total rate of return, and finally, Home Equity Lines Of Credit. Then we’re going to have one of the top real estate trend trackers in the nation join us here later. Let’s get right into it. Ellis from Gastonia, North Carolina asks, “Keith, Episode 188 had a great breakdown of how run you all of the numbers on an income property. The thing I’m wondering about is that your example only resulted in a positive cash flow of $150 on that property. With the maximum of 10 conforming loans that we can get, that’s only $1,500 in monthly cash flow. How would that be enough for us to leave our job?” Thanks, Ellis. And, of course, not everyone that listens here wants to have their passive real estate income replace their passive job income. Though many do. ...and it’s not a get rich quick thing...it’s about incrementally building up durable cash flow streams over years. Well, Ellis, and I’m not sure how many shows you’ve listened to. That example of the $150 cash flow was just for one SFH - and really for one of the lower-cost ones - the purchase price on that was 70-some thousand dollars. It was in Memphis. So most of the income properties you buy will have a higher purchase price, higher figures, and often a higher cash flow. Really, $1,500 with ten properties would be about as low as a projected number could possibly get. So Ellis, if you’re married, both you and your spouse - you each qualify for 10 one-to-four unit properties...20 total and BTW… ...you want to put those in your individual names. If both you and your wife were on the loan, that would count as a strike against each of your limit of 10, so as you buy, alternate back-and-forth - you own the first one, she owns the second, you own the third, and so on, or something like that. So that’s 20 doors minimum there - or I guess 19 since your primary residence is part of that formula, plus if you have some duplexes or four-plexes in there, that might be 25 or 30 or 40 doors. So, there’s so many reasons why you would likely have substantially more than $1,500 in passive monthly cash flow. Then there are financing programs beyond conventional ones, you might also have some 5+ unit apartment buildings, some agricultural parcels or a mobile home community, or maybe you even got a couple low-cost properties paid-off and don’t think it’s worth getting a loan for tiny amounts, so they produce cash flow although there’s no loan there… ...there are a ton of reasons why it would be way more than $1,500. Thank you for the question, Ellis.  ...And another important thing to remember there is that we’re only talking about cash flow - which is only one of five simultaneous profit centers that you typically have. But cash flow is a key profit center because it’s the most liquid one. Jessy from Sacramento, CA says, I love your show. It’s flipped my financial mindset totally upside-down, changed my family’s life, and changed what I thought was possible for us.  Part of what I love hearing about is that 5 Ways You’re Paid in real estate. Ah - then he (or she?) shows me an example here in the question of 30% for leveraged appreciation + 6% cash flow , 5% loan paydown, 4% tax benefits, 3% inflation-hedging = a total return of 48%.   Yes, those are the five ways that real estate investors often have as profit centers.   The question Jessy asks about this is: “Though I get my properties from GREturnkey.com and these returns seem about right, I don’t think I’m invested in any one market that performs this way.”   OK, I love that question, Jessy. Few individual markets are going to perform just that way.   It’s a blended portfolio approach. For example, on your new purchase in Dallas-Fort Worth, you might not have any cash flow any more. It might be cash flow zero. That’s just the way DFW behaves now.   But it’s likely that you’ve been achieving better than 6% appreciation there in DFW (and I’m referencing that 6% appreciation at 5:1 leverage as the 30% Jessy gave in the example).   Then if you’ve also bought in Memphis, you’re likely achieving less-than-average appreciation - that’s just how many areas in Memphis behave, but you’re getting above-average cash flow.   So it’s the blended portfolio approach that can lead to “Year One” returns like what I’ve described with the “Five Ways That You’re Paid”. Multiple markets means you’re more diversified at the same time.   One market, however, that’s performed lately with a nearly equal measure of both appreciation and cash flow are some of the Orlando and Tampa Bay submarkets...so some markets will come close - most won’t - they’ll be weighted differently across your five profit centers.   Thanks for the question, Jessy.   The next question comes from Michael in Astoria, Oregon. Astoria is beautiful. One day, I went to the top of the Astoria column there - it’s a tower overlooking the mouth of the Columbia River.   Michael says, “There aren’t any cash flow markets out here on the west coast and we have substantial equity in our $1 million Astoria home.   We still owe $504,000 on the loan so it’s about half-paid off.   From listening to you and understanding that the Return From Home Equity is always zero, I also know that our leverage ratio has been cut to 2-to-1.   What’s the best way of removing our home equity to use for down payments on cash-flowing income property?”     Well, thanks for the question, Michael. First of all, you need to decide for yourself that that’s what you want to do with your home equity.   Understand that doing so means that none of your equity is lost - it is merely transferred into multiple properties - and it also can produce a cash flow for you now.   Of course, though the return from home equity is always zero, borrowing against your home equity incurs an interest rate expense that you need to beat.   I’ve removed equity from my property with a HELOC for buying more investment property...and let’s drill down and unpackage a HELOC here - H.e.l.o.c. - Home Equity Line Of Credit.   Let’s talk about why you would use one, how it works, and both your advantages and your risks here, Michael.   With a HELOC - if you understand how a CC works, you largely understand how a HELOC works, except your credit limit is based on how much equity you have in your home. You can usually borrow up to an 80% combined LTV ratio.   So what’s 80% combined LTV really mean?   Now with your home, let’s just round your million-dollar home’s mortgage loan balance to 500K. This means that you could potentially borrow up to $800K total - you’ve already got a $500K lien on the property, meaning you could get a HELOC for another $300K.   Yes, with $300K, you could potentially put $30K into ten low-cost income properties in the Midwest and South - down payment & closing costs. Now you’ve spread your risk around because you’re invested in multiple RE markets.   Now to qualify for a HELOC, you'll need to document your income and employment status just like you would if you were refinancing your home, Michael.   People often use HELOCs for home repairs, sometimes they’re used to pay down higher interest rate CCs. But you can use the funds for anything - a trip to France, a new fishing boat.   The HELOC is essentially a second mortgage for you.   Like a credit card, homeowners can borrow or draw money on multiple occasions, usually for a period of 5-10 years, and up to a maximum amount - it would be $300K for you in this case, Michael.   There are two time phases with a HELOC. The first one is your Draw Period, which typically lasts 5-10 years. The second one is your Repayment Period - which can last about 10 years, maybe even up to 20 years.   Now the first one, your HELOC Draw Period is a really nice time. Now you’ve got access to $300K, and you only need to make interest-only payments on it - which means you have flexibility - you can make principal payments on it if you want, but you only need to pay the interest portion monthly.   And your HELOC balance can be very elastic - like a credit card - you could just borrow out $150K on your $300K line right away, make extra principal payments to get it down to $120K after a few months, then months later, run it all the way up to the limit of $300K, and years later pay it back down to “0” again.   It’s a pretty great time for you - you’re enjoying what feels like a windfall of cash and you only need to make the interest-only payments.   But after this 5-10 year Draw period, the second of your two HELOC time phases begins - your Repayment Period.   Now, this can be a real test of how responsible you’ve been with your HELOC funds during your Draw Period - because during this repayment period which can last 10 to 20 years, you must pay both the interest and the principal amount - so your required minimum payment will be higher over all these months until you pay the HELOC balance back down to zero.   Usually, the repayment amount is calculated by dividing the capital you’ve accessed - call it $300K here - by the number of months in your repayment period. Simple math here.   Now, before you originate your HELOC - beware - occasionally, a lender requires your capital to be fully repaid at the end of your 5-10 Drawdown period all in one lump sum - which is known as a balloon payment.   So before you take out a HELOC, just ask your mortgage loan officer about the duration of your Repayment Period once your Draw period ends, ensuring that there’s no balloon due.   Now, even if you do have a 10-20 year repayment period, some borrowers still get surprised at the higher payment during the repayment period - but you won’t be - you’ve got to pay both principal and interest there. Your required payment will increase then.   Now, here’s a great option for you. Of course once your 5-10 year Draw Period ends, maybe you want to keep your line of credit and extend the draw period. Many lenders will do this for you, so long as your home still has enough equity and your financial health hasn’t tanked. Typically, a lender will “pay off” your old line of credit by simply extending you a new one. Now that you understand Draw Periods and Repayment Periods, let’s talk about your HELOC’s interest rate.   HELOCs have substantially lower interest rates than CCs. HELOC interest is often tax deductible - CCs are not.   Your interest rate floats. It’s not fixed. HELOC interest rates are tied to Prime Rate or LIBOR plus a margin above that which is based on your credit score.   Your upfront HELOC costs low, Michael. A $300K HELOC cost might only be a $1K upfront cost.   Now, let’s talk about some risks associated with using your primary residence’s equity for purchasing rental property.   If you have a habit of abusing credit, maybe avoid a HELOC altogether.   Since a HELOC is secured by your home equity, if you don't repay it, you could end up in foreclosure. The same of which can be said for most any mortgage.   Let me tell you about something bad and unforeseen that happened to me with a HELOC in about 2007 or 2008….and by the way, lending guidelines were so loose then that I actually had a 90% LTV HELOC on a non owner-occupied four-plex.   If you can believe that!   But it’s not like that today, so with your HELOC based on 80% LTV on your primary residence, say, Michael, that you’re in a place during your draw period a couple years down the road and say you’ve borrowed $150K of your $300K HELOC.   You’ve got half of it in use.   Here’s what happened to me, just using your numbers to stick with your example - I got a notice from the bank telling me, essentially that they froze my HELOC.   What did freezing my HELOC mean? It meant that even though I was still in my Draw Period, they wouldn’t let me draw further equity from my home - it was frozen at $150K.   Now, they didn’t call the note due or demand any principal payments.   I could still make interest-only payments on the $150K, but with no further drawdowns. There was another $150K that remained unutilized.   ...and why was that? Well, a lot of unprecedented things happened during the Great Recession of 2007 to 2009.   Even though the property I owned didn’t fall in value all that much ten years ago, when housing values started turning down nationally 10-12 years ago, many banks said that you can’t make any further draws on your HELOC - we’re freezing it - essentially the banks were saying that we’re worried about the value of your collateral that secures this loan that we made to you.   Well, I was disappointed because I still had some open funds to use on my HELOC, but access was shut off for quite a while. That was the HELOC freeze.   Now, I could have avoided that had I just taken all the money out of the HELOC and put it in my own liquid bank account. Of course, I would have had to pay interest on a lump that I wasn’t investing too.   Let me just add here, that whomever you listen to for finance and real estate investing information and education, listen to someone that been through a downturn.   I’ve been successfully investing in real estate directly since 2002, and the housing crisis and mortgage meltdown of 2007 to 2009 was actually good for me - as I’ve discussed on other shows.   Now, for you to get a gain - your HELOC interest rate that you’re paying should be the same as, or lower than, the cash-on-cash return of the income property that you’re buying with the HELOC funds.   That’s because it’s cash that you service the I/O HELOC payments with - and you’re really keeping an eye on that when your Draw Period comes to an end.   Remember that HELOC rates have been rising and they’re poised to keep rising.   Now, I already know what you’re thinking. You’re excited about real estate investing and building your portfolio and if you have some equity in your home, you might even be thinking something like:   “Even if my income property’s CCR ends up lower than my home’s HELOC interest rate, it’s all going to work out for me because when I consider that the income property pays me 5 ways (of which the CCR is only one of those five), my Total Rate Of Return will dwarf the smaller HELOC interest rate.   I know you might be thinking that. And you know what, you might even end up being right and it will work out for you, but now you’re tilting into a riskier area.   And you’re going to do whatever you’re going to do….   ...but the Mortgage Meltdown ten years ago proved to me that liquid cash flow is what services HELOC payments.   The other four ways you’re often paid - appreciation, loan paydown paid by the tenant, tax benefits, and inflation-hedging - none of those profit centers are liquid.   By the way, and thanks for the question Michael -   Now, I’ve had some detractors in the debt-free School Of Thought that won’t even entertain the notion of harvesting equity from their own home and buying rental property with it.   But I do it...and I’m not telling you to do it...I’m saying make your own decision. But some even say things like - I bet you won’t like your decision when we have another mortgage meltdown like we did ten years ago.   My response is - this way, I’m better positioned in a mortgage meltdown. During the Housing Crisis, some markets even lost 50, even 60% of their housing values.   In a meltdown, I’m going to be really happy that I didn’t have a lump of equity all in one property just in one market.   Plus, during all that time leading up to a potential future meltdown, I will have had positive cash flow the entire time.   I’ve even had a couple people - that just don’t ever seem to want to think abundantly say - well what if things go beyond a recession and we’re in an all-out depression and everyone loses their job and Americans are massively starved for food.   Then the person that rents your Kansas City property won’t have their medical job to pay your rent anymore, and the Fedex employee in Memphis that rents your place won’t have a job and your cash flow will dry up.   Sheesh, if we’re in an all-out Depression, and the economy breaks down, no one accepts the dollar, and there’s anarchy and mass starvation and looting and Americans don’t even have clean water and everyone’s defaulted on every loan they have, then the fact that you lost the cash flow on your St. Louis rental property is not even going to be one of your Top 20 problems.   So...I don’t know what these people are thinking. Now...   When you’re running your numbers on a single-family income property that you’re thinking about buying and you get a CCR greater than 10%, you know, these days. I want you to look at that CCR with a magnifying glass.   Many markets have prices rising faster than rents that can keep up proportionally. You can still get 10% on a SFH, but not as easily as before.   And I still don’t know of a better place to invest right now than SF income property.   And I don’t think we’re in any kind of housing “bubble” now.   A bubble is defined as a price level unsupported by fundamentals. Today, supply shortage is driving demand.   Therefore, it is very much still a fundamental price increase, not a bubble - in these stable inland markets where we buy homes a little below the median housing value.   So...know the pros and cons of strategic investment moves like a HELOC origination.   Your goal, as a successful investor, is to maximize your ROI throughout your investing lifetime.   I frequently sell or refinance properties due to that fact that equity-heavy properties decrease your ROE - your Return On Equity.   Financially-free beats debt-free. The debt-free person asks a question like “Where do I think I can be someday?”   The financially-free person instead asked themself a better question - what do I have right now to make my & my family’s life better now - what tool do I have that I didn’t even know I had.   What knowledge do I have now, what talent do I have now, what property equity do I have now, what relationships do I have now.   So...thanks for the listener questions today. I only got to three. There is such a backlog of questions that I’ve got.   I wanted to answer three that I felt would be most applicable to the greatest number of people.   Well, ATTOM Data’s Senior VP Daren Blomquist is back with us today.   We’re going to discuss how among homeowners - they’re staying in their homes longer than before - but renters are not included in this - so note that this isn’t a direct measure of transiency.   There are so many reasons for why homeowners are staying put longer   Low interest rates that they locked in years ago often means they don’t want to leave. Mortgage underwriting standards are tougher than they were pre-recession. The supply of replacement properties is low. To a lesser degree - our population aging - the older one gets, the less they move. The supply problem is getting so bad that people increasingly are using data sets of predictive analytics and Artificial Intelligence to tell if someone is about to sell their home.   All that’s next, plus where the more undervalued Midwest & South housing markets are for income property today. You’re listening to Get Rich Education. ______________   For those figures Daren was using in comparing various metro housing market prices to their pre-recession peaks, those numbers are not adjusted for inflation. Keep that in mind.   So if over the last decade we had a cumulative 30% inflation over all those years, then a housing price that’s 30% greater is essentially the same. Very important distinction there.   Thanks again to Daren Blomquist.   I know that you’re a Get Rich Education listener, but are you a Get Rich Education watcher? Get Rich Education TV is developing.   Understand that a lot of changes are taking place there as it’s just evolving.   If you want free education, motivation and tutorial videos from me - just go to GetRichEducation.tv for more.   Let me know what you think about Get Rich Education TV. Land there directly at  GetRichEducation.tv.   Until next week, I’m your host, Keith Weinhold. Don’t Quit Your Day Dream!  
July 16, 2018
#197: I dislike 401(k)s. They REDUCE your income. Sound investments INCREASE your income. Most people simply do not realize that there are alternatives to “defined contribution” retirement plans like 401(k)s, 403(b)s, 457s, IRAs, and Canadian RRSPs. Societal belief systems condition you into “Salary Reduction Plans” - which is, in fact, an early name of the 401(k)! The man credited as the “Father” and “Inventor” of the 401(k), Ted Benna, joins us today. He created and gained IRS approval of the first 401(k) savings plan. Even Ted laments that they should be “blown up”. They are not serving participants in the way they were intended. Ted & I discuss alternatives to 401(k)s. Personally, I don’t invest in 401(k)s. Admittedly, I used to, succumbing to poor financial education and societal conditioning. They’re not designed to begin paying you until between age 59.5 and 70.5. That’s a “life deferral plan” - awful. Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 02:09 What exactly is wrong with a 401(k). 06:45 Replace your “Salary Reduction Plan” with a “Salary Increase Plan”. 08:02 Similar plans like 403(b), 457, IRA, Canadian RRSP. 09:30 Ted Benna Interview begins. 1980 roots. 12:45 Reducing employee wages. 13:37 Benefits and drawbacks of 401(k)s. 18:51 Fees. 25:43 Why 401(k)s should be “blown up”. 32:02 Comparing “Get Rich Education” vs. “401(k)”. 34:44 What does Ted Benna do today? 36:01 My summary. Resources Mentioned: Ted Benna’s website: Benna401k.com Ted’s charity interest: Compassion.com Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Apartment Investor Mastery: BradSumrok.com Turnkey RE: NoradaRealEstate.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book Education: GetRichEducation.com  
July 9, 2018
#196: For under $20,000, you can own deeded agricultural property. It produces cash flow from the crop harvest. Food is an innate human need. Earth’s population grows by 200,000 people daily. But arable land has decreased by 1/3rd in just the last forty years! You can invest in half-acre parcels of coffee and cacao for appreciation and cash flow. They’re deeded to you. The parcels are turnkey-managed by an expert team including agronomists, soil scientists, biologists, a value chain analyst, and laborers. These are higher-grade coffee and cacao varietals - specialty coffee and fine-flavored cacao. Coffee is the second-most traded commodity in the world (oil is #1). We discuss the benefits, risks, cash flow, and your projected ROI. Learn more: see the Coffee and Cacao Investor Reports. Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 01:14 The world needs food. It’s population grows by 200,000 people daily. Arable land decreases. 06:15 Previously, this guest appeared with us on GRE Episodes 28, 60, 125, 157. 07:40 Coffee tree parcels in Panama, cacao tree parcels in Belize. 11:07 Team of farm management pros. Soil science. 18:13 On-site handling adds “single estate” value to beans. 21:16 Who is your end consumer? 27:18 Annual cash flow from annual harvests. 31:20 Trees don’t vacate property. Tenants do. 33:20 11% return plus potential appreciation. 34:00 Half-acre parcels available now: $18,900 coffee, $25,725 cacao. 35:18 Commodity prices. 37:36 Attend a coffee and cacao field trip. 39:37 The world has about 200 nations. How many do you own property in? 43:17 Learn more: see the Coffee and Cacao Investor Reports. Resources Mentioned: Coffee Report: GetRichEducation.com/Coffee Cacao Report: GetRichEducation.com/Cacao Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Apartment Investor Mastery: BradSumrok.com Turnkey RE: NoradaRealEstate.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book Education: GetRichEducation.com   Get Rich Education is brought to you by Ridge Lending Group, Apartment Investor Mastery, Norada Real Estate, and Producers Wealth. Welcome to GRE. From Toledo, Belize to Toledo, Ohio and across 188 nations worldwide, this is Get Rich Education. I’m Keith Weinhold. We need to talk about what really could be one of the most important issues of our time today. Now, we typically talk about providing residential housing in the United States here...and because shelter is an innate human need - and that need is still underserved in a lot of markets today. Well, when you think about food, shelter, and safety - beginning with food - let’s pull back and look at the global picture. I know this sounds incomprehensible if you didn’t already know it, but 200,000 more people are here on earth today compared to how many were here yesterday. Yes, every single day we add 200,000 more people to the planet...and just imagine them all sitting down at a dinner table tonight - and none of them were there are at the world dining table just yesterday. The earth’s population is expected to swell from 7 & a half billion today, and by the end of the century, we’re expecting more than 11 billion. So the innate need for human calories isn’t just here to stay, it keeps growing fast...every day. At the same time, in just the last 40 years, earth has lost 1/3rd of it’s arable land - and that fact alone is unfathomable to some people. Now, it actually gets even more critical. Among this growing population and less arable land, humans are consuming more calories on a per capita basis, and as societies develop, they demand a higher quality calorie. So, needless to say, demand for higher-end and gourmet items is accelerating even faster than those average quality items that we would call generic or commercial-grade. Well today, we’re talking about agricultural real estate investing - and in two products in particular - coffee, and cacao. Cacao is the base product for chocolate. Both coffee and cacao are produced on small trees in central America. ...and in both cases, it is high grade. Now, in coffee, the high-grade term is speciality coffee - and it’s become quite sophisticated. In fact, there’s a 100-point coffee grading scale, specialty coffee must score 80 point or higher. In cacao, the term for the higher-end...I guess...varietals is “fine-flavored” cacao. So rather than a milk chocolate bar, think about those bars with maybe 70% or 80% cacao content that come in a fancy wrapper with some gold-colored foil. Now, can coffee be considered a food? I’m not really sure. But it sure has demand. When you’d get off a plane at the airport even at the height of the Great Recession a decade ago, you’d still see the long line at the coffee shop… ...and that line wasn’t ANY shorter - even in the face of the worst recession in 70 years...so the demand is durable. Coffee and cacao have a production advantage because they’re non-perishable products. Just consider the risk in the inherent supply chain difficulty of producing grapes or lima beans - or something that’s going to spoil. Now, I’m primarily a residential real estate investor - you probably are too - and a lot of my property is in the U.S. On a global scale, there are good deals here.  Now, on a basic level, I like that housing is real and has a sustainable human demand. Well, those same things can be said for agriculture.  In fact, agriculture seems like a rather natural thing to invest in - agriculture even predates modern housing. One interesting distinction, I think, is that your rental housing is typically owned & consumed in the same place. For example, you own a Cleveland, OH rental house and your tenant lives there in Cleveland too - consuming that end product. But in agriculture, you might own coffee tree parcels in Panama, or cacao tree parcels in Belize, but your end user might be consuming the product in California or the Netherlands. Now, when it comes to a trusted team, over the last few years here, my relationship with this provider has really grown. ...and you know, it’s interesting with personal relationships or business relationships, they say that “Time will either promote you or expose you.” ….and I think that it’s promoted the provider here - and we’re going to talk about that. I know that I’ve told you on the air before that I am an investor in this myself. (Talk in-interview that mine has appreciated.) Today’s guest, the company Founder that provides these agricultural opportunities, was with us here on four prior Episodes #28, #60 which we did from the fringes of the coffee fields in Boquete, Panama, Episode 125, and Episode 157. It’s been remarkable to see them grow over time and they’ve really exceeded my expectations in both industry influence and the size that they’re growing. I have visited both places - Boquete, Panama where they grow the coffee and Punta Gorda, Belize where they grow the cacao...and it’s really been fascinating. (give years in interview) Our guest joins us from Boquete, Panama today... _______________  Yeah, it really all starts with a great team there. When you become a real estate investor, you may very well become a “collector” of real estate, and when you gain the realization that owning your collection in diverse geographies and diverse use types hedges your risk, you start to see how this might fit in. With this, In one fell swoop, you are an Int’l RE Investor. It’s not a fund. Your name is on the deed...and at the same time, you own producing agricultural land. The United States is a pretty big, broad place. But as a collector of diverse RE, consider that there are 200 nations in world & it makes increasing sense to be invested in something real in more than just 1 nation out of 200. Now, you can buy an acre of farmland for less that what David talked about. Of course, you’re not just buying farmland here. You get more than the dirt.   You have use and operation of facilities from bean processing facilities to a cupping and grading laboratory and all of the labor and expertise like biologists, agronomists, soil scientists, a Value Chain analyst, farmers and laborers.   ...and a few years ago, I used to think of the provider as a boutique type of operation. But with they way that they’re adding employees and expertise, I don’t think of them that way anymore.   You know, years ago, I thought my first int’l investment might have been in Mexico just because it is closer.   But I found that, it’s harder to deal with on many levels...and Mexico is really kind of the opposite of a tax haven, with more onerous tax than the US.   You’re probably only 1-2 time zones from Belize & Panama, or you might even be in the same time zone.   Now, most people participate in this opportunity...sight unseen...before they see the parcels. I know that a lot of you have visited Panama & Belize and have been on their tours.   I really suggest going on one of their educational field trips - they really treat you well with complimentary meals, ground transportation, excursions.   ...and you can do that whether you’re an investor or not. I bought my parcels more than a year before I ever actually got on the ground and visited them.   If you go visit the Panama coffee farms, I suggest setting aside at least two extra days to see Panama City and the Panama Canal if you like. Just such a grand trip that way.   You’ll find the weather more pleasant and agreeable once you get up into the highlands - where they grow the coffee - in Boquete where it’s cooler.   Now, who would this opportunity NOT be for. It is not for you if you’re devoted to putting every one of your dollars into getting out of the Rat Race in 18 months.   Really, any long-term buy-and-hold real estate wouldn’t fit you then...and I think David made that pretty clear.   People in their 20s, all the way up to their 70s participate. David mentioned that it’s a legacy investment - some people buy it & put it in their child or grandchild’s name.   In fact, I’ve said before that is probably the only real estate I own anywhere - that I have no plans to sell...and I would buy it again. In fact, I might buy more.   When you’re thinking about investing, you might as well start from the ground up - literally - that’s just what farming is.   Next week, the Investor of the 401(k) Retirement Savings Plan, Ted Benna will be here with us.   Then after that we’re going to talk more about today’s rental housing market trends, and later, have an everyday listener like you join us on an upcoming episode - he’s from Michigan - so he can tell us how putting Get Rich Education ideas into practice has changed his life.   Well, today with agricultural real estate investing, we probably touched on at least a few things that you found thought-provoking and will want to know more about.   We are Get Rich Education, so we’re education-first and if you find the opportunities interesting, then I highly encourage you to check out the coffee and cacao Investor Reports…   ...at GetRichEducation.com/Coffee or GetRichEducation.com/Chocolate.   Until next week, I’m Keith Weinhold. Don’t Quit Your Day Dream!
July 2, 2018
#195: If I had maxed out a loser 401(k) when I worked a “day job”, you never would have heard my name. I'd still be working. Learn how to build multiple income streams. The average millionaire has 7 income streams. Be frugal with your time, not your money. I discuss the mindset around building passive income to have time freedom in your life. If you don’t invest in real estate, then how else will you acquire wealth? Options explored. Be yourself. When you strictly trade your time for dollars, you aren’t being yourself. When you have more time, it makes you more of what you are. Kim Butler of Partners For Prosperity joins us. She’s an original Rich Dad Advisor. She & I discuss retirement, the importance of passive income, and more. “Financial planning” has an ugly connotation. Kim & I break it down. We discuss why people keep investing in losing 401(k)s, IRAs, and other “life deferral plans”. Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 00:46 You are an investor. 02:19 Your life’s cash inflows & outflows. 09:16 Be yourself. 13:01 How you benefit when you’re “halfway there”. 18:08 Kim Butler interview begins. “Financial planning” has an ugly connotation. 25:57 Why do people still invest in 401(k)s and IRAs? 28:46 Retirement. 36:04 Why every human is an investor. 39:42 The 7 Principles Of Prosperity: Think-See-Measure-Flow-Control-Move-Multiply. 42:18 Whole Life Insurance. 45:36 Book recommendations. 50:44 If I had maxed out a 401(k), you never would have heard of me. Resources Mentioned: Partners4Prosperity.com Book: The Mystery Of Capital Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Apartment Investor Mastery: BradSumrok.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book Education: GetRichEducation.com
June 27, 2018
#194: The apartment building space is hot. Unless you’re experienced, you need help from an expert that can help you navigate today’s apartment environment. Brad Sumrok, “The Apartment King”, joins us today. His apartment building students get results, closing dozens of larger apartment buildings every year. Brad began with buying a 32-unit building in 2005. Today, he provides forecasts to the apartment industry, and hosts live training events. Tens of thousands listen to his every word. But is it too late to buy apartments today? Apartment prices keep running up. Cap rates are compressed. Now, interest rates are higher. Brad tells you where to look today. I ask Brad, “What’s an underlooked apartment market or niche today?” He names exact towns. Think you can’t afford a $5 million building? Yes, you can. Brad tells you how. Learn how to outbid others when there are multiple offers for an apartment. His in-person events draw large, energetic crowds and he fills bus cavalcades with hopeful investors on apartment field trips. Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 01:27 Leveraging rent increases. 04:10 Brad Sumrok Interview begins. 07:28 Is it too late to buy apartments today? Prices are higher. 09:36 Cap rate compression. 10:23 Interest rate rise. 12:06 There’s still a housing shortage. 13:24 What’s an underlooked apartment niche today? 15:23 Value-add buy-and-hold apartments. 19:23 “I can’t afford it.” Yes, you can. Here’s how. 22:38 Carried interest. 24:20 Financing. 26:04 Tenant and property character. 28:05 Multiple offers - how to outbid others. 32:13 Brad’s training events are super-popular. The next one is July 21st-22nd. Resources Mentioned: Brad’s Live Event, July 21-22: BradSumrok.com Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Apartment Investor Mastery: BradSumrok.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book Education: GetRichEducation.com
June 27, 2018
#193: If you raise the rent, these deadly mistakes will make your tenant move out. Learn how to effectively raise the rent in a way that makes your tenant stay. Rent escalators. You learn how to leverage your rent hikes. I review exactly what to include and exclude from your Notice Of Rent Increase Letter. Where do I get my investing and real estate information from anyway? I tell you. ATTOM Data Solutions’ Daren Blomquist reveals the exact city where Amazon is most likely to locate their second headquarters (HQ2) based on their research. Flipping activity can be predictive of “up-and-coming" neighborhoods. Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 01:42 You can leverage rent raises! 04:21 Mistakes to avoid in rent hikes. 07:01 Steps to raise the rent properly. Rent escalators. 10:36 Notice Of Rent Increase Letter. 15:55 Daren Blomquist Interview begins. 16:42 Amazon HQ2. 23:59 Neighborhood grading. 27:57 Flipping activity can predict "up-and-coming" neighborhoods. Resources Mentioned: AttomData.com Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Apartment Investor Mastery: BradSumrok.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book Education: GetRichEducation.com
June 27, 2018
#192: Your property can be damaged by Rent Control; so can your community. Today, you learn how to avoid it. You buy, sell, and rent your property at market value. But what happens when an outside force comes in and disrupts your “free market”? I also tell you about a major tenant problem from one of my own apartment buildings. To avoid losses, learn what clauses to put in your Lease Agreement. Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 01:30 The Broken Window Fallacy. 06:42 30-year mortgages vs. 15-year mortgages. 07:53 Rent control. 20:21 A flood in my apartment. Renter’s Insurance. 24:33 Security deposit and last month’s rent. 28:10 Resort property with cash flow. Resources Mentioned: Keith’s Recommended Reading List Book: Economics In One Lesson The Landlord’s Almanac Placencia, Belize Investor Report Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Apartment Investor Mastery: BradSumrok.com Find Properties: GREturnkey.com GRE Book: 7 Money Myths Education: GetRichEducation.com
June 27, 2018
#191: What makes fourplexes such great wealth creators? Financing and economies of scale. But there’s one giant pitfall with many fourplexes. Today’s guest, Steve Olson of the Fourplex Investment Group (FIG) has an elegant solution to the pitfall. He tells us how to maintain your investment’s value for long-term returns. You need to safeguard yourself against neighborhood blight to protect your investment’s value. Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 01:30 Fourplexes are the largest building for residential financing. 03:27 Safeguarding against neighborhood blight. 07:00 The FIG: Fourplex Investment Group. 09:09 How to repel neighborhood blight. 14:50 Pro formas. 17:48 Dealing with today’s compressed cap rates. 21:15 Pre-construction. 24:55 Exit strategy. 28:05 Fourplex prices. 32:55 Financing. 36:42 Property management. Valuation, appraisals. 38:54 Duplexes. 41:40 Keith’s analysis of the investment. Resources Mentioned: FIG: Fourplex Investment Group E-mail: solson@fig.us Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Apartment Investor Mastery: BradSumrok.com Find Properties: GREturnkey.com GRE Book: 7 Money Myths Education: GetRichEducation.com
June 27, 2018
#190: Did you think that inflation only makes you poorer? Learn many simple examples about how inflation makes you wealthy. Here's a clue: inflation impoverishes savers and enriches debtors. MacroEconomist Richard Duncan joins us. He predicts the future direction of inflation and interest rates. Learn the difference between RE appreciation and RE inflation. Richard tells us why “money printing” no longer equals inflation. Globalization could be reversed. This pushes inflation higher. Richard tells you how to act in response to what’s coming. Richard’s brilliant economic work is at RichardDuncanEconomics.com. Get 50% off a MacroWatch subscription with the Discount Code “GRE”. Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 01:03 I used to ask myself how RE investing could be any good. 02:18 Signs of consumer inflation. 04:05 Simple examples of how inflation makes you wealthy. 07:41 Financial forces you can and cannot control. 11:30 Is some inflation good? 13:40 Appreciation vs. Inflation. 15:16 Why “money printing” no longer equals inflation. 24:20 How globalization could reverse, stoking inflation. Tariffs, trade war. 27:27 Richard tells you how to act in response to what’s coming. 31:06 Richard’s brilliant economic work is at: RichardDuncanEconomics.com. Get 50% off a MacroWatch subscription with the Discount Code “GRE”. 32:32 My summary of Richard’s interview. Resources Mentioned: MacroWatch - Use code “GRE” for 50% off How You Can Profit From Inflation Inflation Calculator Cash Flow Banking: ProducersWealth.com Mortgage Loans: RidgeLendingGroup.com Apartment Investor Mastery: BradSumrok.com Find Properties: GREturnkey.com GRE Book: 7 Money Myths Education: GetRichEducation.com
June 27, 2018
#189: If an income property is so good, why would anyone sell it to you? You get answers. I tell you how long it took me to quit my day job to replace it with passive income. Single-family income properties vs. apartment buildings are compared. Invest in a growing place. Florida keeps growing due to: affordable housing, warmth, coasts, and it’s the only income tax-free state east of the Mississippi River. The Orlando, Florida area has grown 20%+ in just the last decade. Turnkey RE investing means that a property is: 1) Already rehabbed.  2) Tenanted. 3) Under Management. 4) Produces income from Day One. $80-$150K, 36-month avg. tenant duration, 1.8% property tax, rent-to-price ratio ~0.9%.   Areas north of Orlando work best. Some areas to the south have economies more dependent on fickle tourism. Learn more about investing in Orlando turnkey property at: GetRichEducation.com/Orlando Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my new, best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 01:14 I discuss how long it took me to quit my day job. 02:51 Single-family income properties vs. apartment buildings. 10:34 Why Florida grows at a phenomenal rate. 16:11 Two incomes doesn’t have to mean “both parents work”. 18:02 Definition of “turnkey”. 19:25 Pros and cons to turnkey RE investing. 22:02 Communication with investors. 24:52 Submarket selection. 26:35 The numbers. 31:24 If the property is so good, why would anyone sell it to you? 33:42 Housing demand far outstrips supply. 36:00 Older tenant demographic in central Florida. 38:16 Bulk and standardized materials. 39:35 Get the Orlando Investor Report at: GetRichEducation.com/Orlando. Resources Mentioned: Orlando Property: GetRichEducation.com/Orlando Cash Flow Banking: ProducersWealth.com Mortgage Loans: RidgeLendingGroup.com Apartment Investor Mastery: BradSumrok.com Find Properties: GREturnkey.com GRE Book: 7 Money Myths Education: GetRichEducation.com
June 27, 2018
#188: Learn to run the numbers step-by-step on a real income property and determine your ROI on 1502 Merrycrest Drive in Memphis, TN. We discuss how to create your own economy. It depends on YOU, not the national government or the local economy. Your income property is merely a widget that secures an income stream. Many people self-manage and have no margin for professional management. You often get a better return passively than they do actively. Why pin your hopes on compound interest? Consider compound cash flows. Inaky Strick joins us to tell you what he’s learned from attending elite live events. Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my new, best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 01:02 How to create your own economy. 05:23 Your income property is merely a widget that secures an income stream. 06:54 We run step-by-step numbers on 1502 Merrycrest Drive, Memphis, TN and determine your cash-on-cash return. 14:14 Real estate math is simple. 15:20 Total ROI calculated with the “5 Ways” you’re paid. 19:52 Why I don’t consider “instant equity” as a sixth way you’re paid. 21:17 Compound cash flows. 25:40 Inaky Strick tells us what he’s learned from attending live investing events. 34:25 How Inaky affords going to all these events. 39:35 Your self-belief. Resources Mentioned: InakyStrick.com MidSouthHomeBuyers.com Events: GetRichEducation.com/Events Cash Flow Banking: ProducersWealth.com Mortgage Loans: RidgeLendingGroup.com Apartment Investor Mastery: BradSumrok.com Find Properties: GREturnkey.com GRE Book: 7 Money Myths Education: GetRichEducation.com
June 27, 2018
#187: A mortgage is a tool. Used responsibly, you can control 5x as much real estate with 20% equity than you can with a paid-off property. Risk is discussed. If I could, I would want 100-Year Mortgages rather than 30-Year Mortgages on my properties. You’ll learn why. Graham Parham of Highlands Residential Mortgage joins us. He tell us the latest income property loan requirements today. We discuss conventional loans on 1-4 unit rental properties. Graham tells us about your Ability To Repay (ATR) factors that mortgage underwriters seek. We discuss your Debt-To-Income ratio limits, Reserve Requirements, interest rates today, credit scores, paying discount points, 30-year vs. 15-year mortgages, and appraisals.    Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my new, best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 00:57 You can own and control more real estate if you have loans on them. 02:08 What’s the risk of borrowing? 03:26 100-Year Mortgages. 09:24 Qualifying for loans if you don’t have “W-2” income from a day job. 11:57 Loans for foreign buyers that want U.S. income property. 13:18 Ten loans with 20% down. 13:49 Ability To Repay (ATR). 15:52 Debt-To-Income (DTI) ratio example. 16:23 Your reserve requirements. 19:13 Interest rates today. 21:18 A 740 credit score is the highest that can help you. 24:23 Paying discount points. 28:03 ARMs and 30 vs. 15-Year Mortgages. 30:45 Example of one paid-off property vs five with 5:1 leverage. 33:43 Appraisals. Resources Mentioned: Graham’s phone: 1-855-326-6802 Graham’s website: TexasInvestorLoans.com Graham’s resource: InvestorsLoanGuide.com Cash Flow Banking: ProducersWealth.com Mortgage Loans: RidgeLendingGroup.com Apartment Investor Mastery: BradSumrok.com Find Properties: GREturnkey.com GRE Book: 7 Money Myths Education: GetRichEducation.com
June 27, 2018
#186: You’re paid five ways as a real estate investor. Rich Dad Tax Advisor Tom Wheelwright and I add up those five rates of return and provide you with an estimated Year One ROI. We discuss how to make trips to visit your turnkey rental property a tax-deductible event. With the new tax law, taxes are adjusted for “inflation” more often than previously. But CPI isn’t used. It doesn’t keep up with “real” inflation. Tom is the author of “Tax-Free Wealth”. Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my new, best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 01:00 The Masters Law. 04:39 Belize Investor Tour. 09:10 Tom Wheelwright and I on real estate ROI. 18:55 Real estate depreciation example. 24:34 Making your trip to visit your turnkey property a tax-deductible event. 33:23 Inflation and taxes. Resources Mentioned: More About Tom: Wealthability.com Belize Investor Tour: GetRichEducation.com/Belize Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Apartment Investor Mastery: BradSumrok.com ShadowStats.com Find Properties: GREturnkey.com GRE Book: 7 Money Myths Education: GetRichEducation.com
June 27, 2018
#185: You learn how to market your property well. You will have more interested renters and buyers, better quality clientele, and more and better offers. Curb appeal, photography discussed. We discuss what makes a good turnkey RE investing provider, including how some property managers want your tenant to turn over so that they receive more leasing fees! Today’s guest owns a company that builds and provides new construction turnkey RE, which is why they have available inventory today. (Yes, really: today.) I recently visited their offices. Many managers don’t want to sign tenants to two and three-year leases because: 1) It’s easier to find tenants that sign one-year leases. 2) Managers get fewer leasing fees. Learn why today’s provider doesn’t do that. We discuss cash flow, rates of return and appreciation rates in Jacksonville, Florida. Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my new, best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 00:47 A well-marketed property means you have more interested renters and buyers. 03:16 Real estate photography. 08:53 Florida turnkey real estate. 12:30 The strength of the team. 16:23 New construction turnkey. 20:48 Tenant leases of 2 to 3 years duration. 26:46 Why property managers have an incentive to turn over tenancies.  29:38 Sales price $160K-$200K. Average: $1,350 rent, $180,000 purchase price (0.75% RV ratio). 32:26 Appreciation rates. 35:25 Future of rents and prices. Resources Mentioned: New Construction Turnkeys: GetRichEducation.com/Jax Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Apartment Investor Mastery: BradSumrok.com Find Properties: GREturnkey.com GRE Book: 7 Money Myths Education: GetRichEducation.com
June 27, 2018
#184: Higher interest rates are obviously bad for real estate investors that make new purchases. Few realize that higher interest rates often translate into HIGHER housing prices. How could that be true? I explain. MacroWatch’s Richard Duncan joins us. He tells us why interest rates are likely to rise substantially in coming years. Learn why low inflation pushes down interest rates and why high interest rates cool an economy. Also learn why the U.S. is now destroying billions of dollars every month, and tariffs’ effect on interest rates. Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my new, best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 02:13 How higher interest rates translate to higher home prices. 10:05 Decades ago, how Richard knew lower interest rates we coming in the early 2000s. 12:23 Why low inflation pushes down interest rates. 13:27 Higher interest rates cool an economy. 15:35 Why long-term interest rates could be pushed substantially higher. 19:06 Quantitative Easing ended. Quantitative Tightening has begun. 21:58 Tariffs and the looming “Trade War”. 25:16 Reversing globalization can increase inflation and interest rates. 26:26 Why fixed-rate mortgages are better than adjustables. Resources Mentioned: MacroWatch: RichardDuncanEconomics.com Article: Higher Interest Rates Mean Higher Home Prices Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ValhallaWealth.com Apartment Investor Mastery: BradSumrok.com Find Properties: GREturnkey.com GRE Book: 7 Money Myths Education: GetRichEducation.com MortgageNewsDaily.com
June 27, 2018
#183: There is an asset type where you can get both cash flow and have the peaceable enjoyment of the premises yourself. Most people regret buying vacation property because they’ve either found that: 1) They don’t use it often. 2) They’re managing it as a rental to others. 3) They bought a timeshare. Imagine being able to buy tropical beach property in Placencia, Belize: it’s closer to most of the U.S. than Hawaii, with warmer water than Hawaii, and at low prices like Hawaii had decades ago. Buy vacation property that provides you with monthly cash flow, is in an up-and-coming place, and is turnkey-managed. Sometimes you must ask: “What’s my Return On Life?” Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my new, best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 03:46 One special world place with enormous opportunity. 06:39 Trends and indicators of new real estate development. 09:11 Placencia, Belize. 13:42 Infrastructure, existing development, geography, amenities. 18:10 Property construction on tropical islands. 20:09 Utilities. 22:44 Turnkey-management detail. 27:10 Safety and security. 29:10 Minimum investment is $50K. 32:05 Investor tour. 38:23 Cave tubing, waterfall, beaches, community, islands 40:58 Book a tour & meet me. I’ll be there July 20th to 23rd, and again Sept. 6th To 9th, 2018. Get started at www.GetRichEducation/Belize. Resources Mentioned: GetRichEducation.com/Belize Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ValhallaWealth.com Apartment Investor Mastery: BradSumrok.com Find Properties: GREturnkey.com GRE Book: 7 Money Myths Education: GetRichEducation.com
June 27, 2018
#182: Using your home as an ATM or credit card? Is this irresponsible? A listener and I discuss the risks and rewards of using a Home Equity Line Of Credit (HELOC) to cash out your home equity for use in income property investing. Our guest is a Get Rich Education listener and Grammy-Nominated Music Producer Blake La Grange of San Diego, CA. Most people settle for “Maybe someday.” Instead, optimize what you have now. Use leverage, debt and equity, and arbitrage to your advantage. Blake & his wife played the speculative property appreciation game well. Their $585,000 home soon appraised for $700,000+. This provided equity for them to transfer into income property. Want more wealth? 1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2)    Actionable turnkey real estate investing opportunity: GREturnkey.com 3)    Read my new, best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: [02:44]  Meet Blake La Grange, San Diego-based GRE listener and Music Producer.   [04:45]  Blake’s mindset change from debt-free to financially-free. [11:24]  Blake & his wife’s first home cost $585,000. [15:11]  Private Mortgage Insurance. [17:17]  $700,000+ home appraisal. [20:08]  Home Equity Line Of Credit (HELOC). [27:54]  Listening to GRE “like crazy”. [31:06]  Blake and turnkey real estate in Birmingham and Memphis. [38:27]  Pay off rentals or keep exchanging? [40:22]  Going from owning zero properties to one is most difficult. [45:22]  Even if your mortgage balance is zero, you still have housing payments. Resources Mentioned: Guest’s website: BlakeLaGrange.com Guest’s e-mail: blake.lagrange@gmail.com How To Turn $100K Into $300K In Five Years Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ValhallaWealth.com Apartment Investor Mastery: BradSumrok.com Find Properties: GREturnkey.com GRE Book: 7 Money Myths Education: GetRichEducation.com
June 27, 2018
#181: Learn how to permanently reduce your taxes. At a W-2 job: the government gets paid first, Wall Street second, and you’re third. I recite “A Tale Of Two Real Estate Markets”. This story will shift your thought paradigm and make your jaw drop. Tom Wheelwright & I discuss income tax and capital gains tax - rates, history, and strategy so you legally pay the lowest possible rates. Learn why house flippers pay higher tax rates than buy-and-hold real estate investors. Where will tax rates be in the long-term future? Tom discusses. Want more wealth? 1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2)    Actionable turnkey real estate investing opportunity: GREturnkey.com 3)    Read my new, best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 01:02  “A Tale Of Two Markets”. 13:10  At a W-2 job: the government gets paid first, Wall Street second, you third. 14:05  Income tax, Social Security tax. 30:13  Capital gains tax. 36:48  Thoughts about where future tax rates will be. Resources Mentioned: Wealthability.com BLS Unemployment Data Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ValhallaWealth.com Apartment Investor Mastery: BradSumrok.com Find Properties: GREturnkey.com GRE Book: 7 Money Myths Education: GetRichEducation.com
June 27, 2018
#180: Stop looking at properties. (What?) I discuss. Are you in real estate for appreciation, cash flow, or something else? If you focus on cash flow, does that mean less appreciation, and vice versa? We discuss when a market becomes "too hot to buy for cash flow” any longer. The Midwest has more affordable property and better cash flow but less recession resilience. Dallas-Fort Worth keeps showing appreciation potential, but cash flow is drying up. When a market heats up, rents don’t “keep up” proportionally to a property’s market value. We also discuss low appraisals. Appraisals are what the bank uses to verify the quality of their collateral. Want more wealth? 1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2)    Actionable turnkey real estate investing opportunity: GREturnkey.com 3)    Read my new, best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 00:54  Stop looking at properties. (What?) 03:36  The importance of cash flow, appreciation. 07:07  The Midwest: more affordable housing, better cash flow, but less recession resilience. 08:52  Dallas-Fort Worth’s appreciation. 11:00  When a market becomes too hot. 14:48  “Lump Sum Cash Flow” defined. 16:23  With 5:1 leverage and 6% appreciation, $100K becomes $300K in five years. 18:22  Blended portfolio. 21:10  Median rent income vs. median housing value. 25:17  Why low appraisals can occur. Resources Mentioned: Dallas property: GetRichEducation.com/Dallas Kansas City property: GetRichEducation.com/KC St. Louis property: GetRichEducation.com/StLouis GRE Book: 7 Money Myths Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ValhallaWealth.com Find Properties: GREturnkey.com Education: GetRichEducation.com
June 27, 2018
#179: Money is an abundant resource. I tell you why. When you’re looking to move accumulated equity, should you do a: 1) Straight sale. 2) 1031 Tax-Deferred Exchange. 3) Cash-out refinance. Avoid lazy money. My personal internet bill is $145, cable $126, phone around $100. Who cares? You learn how much I like to spend on a hotel. Uber and Lyft are killing the parking business. Learn how to estimate rental property operating expenses. Want more wealth? 1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2)    Actionable turnkey real estate investing opportunity: GREturnkey.com 3)    Read my new, best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 00:52  Wealthy people’s money either starts in RE or ends up in RE. 02:03  Listener question about 1031 Exchange vs. Cash-Out Refinance. 13:20  Lazy money. 15:04  Other podcasts. 16:09  Free book. 19:11  More on Dave Ramsey. 20:26  Why money is an abundant resource. 24:36  “Uber Really Is Killing The Parking Business”. 29:18  Residential real estate is here to stay. 30:07  “Return On Life” and passivity. 32:47  Don’t underestimate rental property expenses. Resources Mentioned: Article: Uber Is Killing The Parking Business GRE Video: Operating Expenses GRE Book: 7 Money Myths Podcast: The Real Estate Guys Podcast: Cashflow Ninja Podcast: The Real Estate Way Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ValhallaWealth.com Find Properties: GREturnkey.com Education: GetRichEducation.com Welcome to GRE, Episode 179. I’m your host, Keith Weinhold. From Saratoga, Australia to Saratoga Springs, New York and across 188 nations world wide. This is Get Rich Education and we are cultivating a Real Estate Of Mind here. That is because wealthy people either start out in RE, or wealthy people’s money ends up in real estate. It’s either one or the other. ...and you know, the most important piece of real estate may very well be - that real estate right between your two ears - your mind We come from an abundantly-minded place here at GRE. If you want to learn about combining vinegar and water in a bottle because it’s cheaper than Windex. Well, you’re not going to learn about that here. If you’ve been wearing the same pair of monthly contact lenses for the last two years...then, well, you didn’t learn to do that here either here. In fact, money itself is an abundant resource, not a scarce one. We’re going to talk more about that today. We’re going to talk about passive income and define what exactly that means. We’re also going to talk about how to best increase your velocity of money. Is it by doing a 1031 Tax-Deferred Exchange or a Cash-Out Refinance - with your income property. Let’s go to the listener question about this. Listener Jacob Ayers asks: To move equity, should I do a 1031 Tax-Deferred Exchange or a Cash-Out Refinance? Thank you for that rather eloquently-stated question there, Jacob - and it is a germane time to discuss this. There’s a lot of equity out there that is ripe for harvest because most markets have appreciated a good 7-8 years in a row here. Really, this is a question about moving equity to keep it working for you. What is the best vehicle for increasing your velocity of money? Since the return from property equity is always zero, ideally you want to take a big chunk of it and splinter it off into a bunch of little pieces and that way you can leverage more property. Let’s back up. There are actually three ways for you to move equity should you so choose that it’s right for you. The first way is to... Sell Your Property - That way, you can get all of your equity out. Now, Jacob, you’re a savvy investor so that’s why you probably didn’t even bring that up as one of the ways that you can move equity. Because, of course, the big problem with this is that when you sell an income property. You could sell your current equity-heavy property and buy another. But the problem with selling is that you'd probably have to pay capital gains tax, which would reduce the equity you have available to re-invest. You’re also going to have to pay depreciation recapture. Yep, that is all of the depreciation that you wrote off against your taxes every year that you owned the income property will be recaptured off that first income tax return you file after the building sale. So you might have a nice gain but the tax hit is harsh. That is, of course, unless you move your equity in the second of three ways and you perform a 1031 Tax-Deferred Exchange. If you meet the rules of the 1031 Exchange, you can avoid all of the nasty bite of the capital gains tax and all of the depreciation capture. Yes, it can be 100% avoided. In fact, the Exchange is the best way to move your equity. If you follow the rules and do the exchange properly, you can move 100% of your net equity, tax-free. Sometimes people point out that exchanging is really tax-deferred, not tax-free.  But, c'mon, the exchange itself, if done correctly, is tax-free.  The capital gain is carried to the next property without being taxed.  Therefore, in real estate, capital gains is a voluntary tax.   What I mean by that is the gain is not taxed unless the you, the owner, volunteers … by selling the property outright.   Instead of selling, savvy investors continue to exchange until they die and then your cumulative gains over your entire lifetime - they are forgiven upon your death - and that’s because of the stepped-up basis rules.   Be sure to ask your good tax manager about the details of the stepped-up basis rules. I’m not going to get into that here. But that’s why it’s effectively tax-free But whether you call it tax-deferred or tax-free, exchanging is one of the most powerful things in the entire tax code, but it’s very much misunderstood by many accountants, attorneys and real estate agents. Actually, during my first-ever 1031 Exchange I soon learned that my income property agent had never gone through this before. Now I devoted an entire episode to the 1031 Exchange here for you a few months ago, so I’m not going to get into all the details and rules again here. The most important thing that I can tell you, to pull off a 1031 Exchange, is to enlist a 1031 Exchange Qualified intermediary early on - before you even sell the property that you want to sell. From the time that you sell the equity-heavy property that you want to get rid of, you have 45 days to identify a qualified replacement property, and 180 days to close on that identified replacement property. ...and there are all kinds of rules and limits around how to identify property. But it must be specific. You can’t say that your replacement property is going to be a green duplex in Kansas City. You’ve got to give a specific legal address. The episode that I completely devoted to he 1031 Exchange topic a few months ago where I discuss the rules and the critical mistakes to avoid, and the deadlines and everything else for you, that is Get Rich Education podcast Episode #143. So the first way to access equity in a property is to sell it outright, the second way is through the exchange, and the third way that you mentioned, Jacob, is with the cash out refinance. The problem with the cash-out refinance is that you typically cannot access all of the equity in a property because you are not selling it like you are with the other two methods. So if you’ve got 50% equity in a property that you want to get rid of, you can get all 50% out with the straight sale or the exchange. But you might only be able to access 30% of the property value with a cash-out refinance because you might only be able to get an 80% loan-to-value loan. A bank is going to make you keep 20% equity in there as your skin in the game. The advantage of the cash-out refinance is that you shouldn’t have to pay tax on the equity that you extract because the IRS classifies this as debt. There’s no tax on debt that you’ve originated. One advantage of the cash-out refi over the 1031 is that the cash-out refi is faster & less stressful. You can move at your own pace. With a 1031, you’re selling at least one property and buying at least one property, so now you have all these steps - inspection, appraisal, you’ll incur make-ready expenses, and you’ll often be paying an agent commission too. With a cash-out refi., you typically just have an appraisal - no inspection, no make-ready, and no agent commission. But a 1031 is typically the best vehicle for moving equity from a “dollars” perspective. A 1031 is also a better move if you want to sell a “dog” of a property that you can’t seem to keep rented to decent tenants or something, but yet you’ve built equity in the property. If you own a property that’s been good to you but it’s become too equity heavy, you might be tempted to do a cash-out refi instead of a 1031, but yet if you can replace your nice cash-flowing property with one that cash flows even better, look at the 1031. When it comes to the cash-out refi, if you think that’s a better choice, remember - and this is especially true if you’re looking to do a cash-out refi of your own home - your primary residence, you can often take out a second mortgage and keep the first mortgage in-place, untouched. That might be a good option if you still like your first mortgage’s low interest rate or it’s advanced amortization schedule. A cash-out refi doesn’t mean that you have to restructure every part of the debt on one property. You can keep a first mortgage in-place and see if you qualify for a second. Just a word of caution on the second mortgage cash-out refi - if your second is a HELOC - home equity line of credit, those HELOC interest rates are not fixed. They float in lockstep with the Federal Funds rate which is expected to increase. To be safe, you want the CCR from your new purchase to equal or exceed that of the mortgage interest rate on the property that you just took cash out of. Although I like the 1031 more than the cash-out refi overall, I can think of a couple other disadvantages of the 1031. With the 1031 Tax-Deferred Exchange, you might experience a degree of stress, much of it having to do with the timing of meeting those 45 and 180 day milestones that I mentioned earlier. You don’t really want to be on a 3-week vacation to Peru and Ecuador during a 1031. On the properties that you identified as replacements for moving your equity into them tax-free, something might get slowed down in your ability to buy them that’s out of control, or if you’re looking to 1031 your equity into new construction property and the new construction is going too slowly, that can create some stress. With the cash-out refi., you’re on your own deadlines, not the 1031 deadlines that the IRS sets for you. You know another thing - another small disadvantage with the 1031 Exchange that people never think about - and everyone overlooks this. I didn’t really see it coming until I had the ball rolling with my first-ever 1031. It’s that during that time - those three months or so after you’ve sold your relinquished property and before you’ve closed on your replacement property, you’ve lost cash flow… ...because there’s that gap there - that delayed exchange gap where you don’t own some property for a period of a few months. I’ve done a 1031 with a substantial chunk of my portfolio, and I had about three months where a major piece of my cash flow was cut off until I closed on the replacements.   1031s & cash-out refis have definitely been good for me. I’ve made some mistakes in real estate investing for sure, but having an early awareness of the fact that dead equity isn’t serving me and then actually doing something about it really helped me get me to where I am today. If you’ve got a lot of equity in a property or a property paid off, you’ve got to realize that your money just got lazy. Not only is it not working for you, you’re paying the opportunity cost of not using it to also leverage other people’s money work for you. Don’t let your money get lazy. So when I’ve built up around 35% equity in an income property, that’s when I’m looking forward to moving it. It’s that 35% mark. With a primary residence, it would be less than 35% because I can pull more out - I can pull out equity up to a higher loan-to-value ratio. Just think about property that you have 50% equity in. Your leverage ratio is been slashed to 2:1. If you reposition it with 20% down payments on multiple properties, now your leverage ratio is 5:1. That is just huge, and it’s great as long as you’ve safeguarded controlling your cash flow… ...and we love cash flow - but what has created more wealth for real estate investors is really leveraged appreciation so consider keeping your leverage ratio up there by maintaining small equity positions in a bunch of properties. You know what else? The more that you learn about the economy, pulling $ out of property and transferring it into another property actually expands credit, that very act expands the money supply, and it stokes inflation… ...and as you know from listening to this show, inflation is actually our friend. Great question from Jacob - asking about the pros and cons of a 1031 Exchange vs. a cash-out refinance. By the way, that “Jacob” was “Jacob Ayers” - he is the host of “The Real Estate Way To Wealth And Freedom” podcast. That’s another show that you can listen to. You know what’s funny - some podcasters don’t want to talk about other podcasts similar to theirs or they’re afraid that they’re going to lose listeners to that other show that they talk about. Well, I just don’t feel that way - and well, maybe that’s part of my abundance mentality. Of course, I value my listeners and anyone wants more listeners just like an artist would want more people to see what they’ve spend weeks working on - on canvas. You can check out The Real Estate Guys Radio Show with Robert Helms and Russell Gray. That’s a really good one. Sheesh, I’ve even got a commercial on my show that tells you about someone else’s podcast - the Cashflow Ninja hosted by my friend M.C. Laubscher. That’s another good show that you can check out. He’s had some great guests on that show like Ron Paul, Robert Kiyosaki, and Jim Rogers. Once again, Jacob Ayers’ show is called “The Real Estate Way To Wealth And Freedom”. Uber and autonomous cars are killing the parking lot and that’s going to change real estate. I’m going to discuss that in a bit. I’ve also got some Dave Ramsey fallout from our episode from two weeks ago. You know, if you want to learn more about the misconceptions around debt and equity - which have been woven into this discussion so far - and how to use debt and equity to your advantage - and in the way that affluent people use them… ...and why getting your money to work for you won’t create wealth and how to get other people’s ethically working for you to create wealth for yourself and a lot more... I wrote a book less than 9 months ago about how you can do that. You can get the e-version of my book completely free. Not just a free chapter or something but the complete e-book free... ...Robert Syslo is going to tell you how easy it is to do that now. Go. ________________ Welcome back to Get Rich Education. I’m your host, Keith Weinhold. We got more great feedback on our episode from two weeks ago when we were talking about the largely - really - antiquated Dave Ramsey ‘debt-free’ School Of Thought. We’re talking about a School Of Thought that has - in the past - suggested that people eat things like cheap processed Ramen noodles - and beans and rice - so that they’ll have more money in their pocket so that they can pay off a car loan or a mortgage loan. When you pay down debt that’s lower than the rate of inflation, you’ve actually diminished your prosperity now. So now you’ve diminished your prosperity and you’ve eaten Granola bars and Cup O’ Noodles so now you’ve sacrificed your health - just to diminish your prosperity - plus...you took your time to learn about how to live like that!? That is just so absurd, scarcity-minded, and that is not serving people. Ugggh. I’m not going to go on, I don’t want to dip into hyperbole, but hearing about that stuff is just really dispiriting. If I’m going to use my time to learn about something, I want to learn about how to produce, not reduce. I think part of that is realizing that money is actually an abundant resource. Yes, money is an abundant resource. How much currency does the Treasury Department print every day? During Fiscal Year 2014, the Bureau of Engraving and Printing delivered approximately 6.6 billion notes to the Federal Reserve. They produced approximately 24.8 million notes every day with a face value of approximately $560 million. Those numbers are so large, some people can’t even fathom it. Those stats right there can actually be picked apart all day. Most dollars aren’t even printed, of course, they’re digital and they’re created out of thin air when dollars are borrowed into creation - but it just gives you some idea of how abundant money is. Look, my monthly internet bill is $145 and my Cable TV bill is $126 - yes, I have cable because it’s just a nice option and money is an abundant resource. I just learned this because I just saw the bills come in. You know, I’m just really barely aware of my consumer bills. I’m into expanding my upside instead. I don’t even know how much my monthly phone bill is. Maybe $100. So for internet, cable and phone combined, that’s...what three hundred seventy-some dollars a month? Is that a lot? It just doesn’t matter that much. I’m focused on what matters. Expanding the upside. Money is an abundant resource. How much do you like to spend on a hotel? To me, it seems like $300 a night is a common number to spend at a good hotel. What about a $79 hotel? I wouldn’t even want to stay there. I might not even want to stay there for free. But you know what, everyone has learned how to tap into abundance at a different level. Everyone’s got their price. OK, what about a $2,500 hotel. What if I were staying there? I might think that that price is pretty steep. I’ve got to admit, I would be asking myself a question like “Now why am I staying at a $2,500 hotel? Is this my honeymoon or something?” Maybe I would soon move to another hotel. Well, didn’t I just say that money was an abundant resource, so what’s my problem? Maybe the Amazon Founder, Jeff Bezos - he wouldn’t want to stay in a $300 hotel like I’m more used to and I just think of as standard. He might live in the $2,500 hotel year-round if he had to because it doesn’t matter to him. See Jeff Bezos and Amazon.com have figured out how to provide more value to more people than you have - and than I have. Money is an abundant resource. But just because something is abundant, doesn’t mean that it has no value. Look, the air that you breathe is pretty abundant all around us but it’s also really valuable. We would die without air just like we would financially die without money. But yet they’re both abundant. Right now I’m not too far - and maybe you’re not too far - from a parking lot with hundreds of cars in it. So cars look pretty abundant but each one still has value and utility just like dollars. So the point is that a scarcity mindset and an abundant mindset are relative in a sense. But really, if you’re looking to produce before you reduce, it’s an abundant mind. Money is an abundant resource, and the amount of the world’s abundant supply of money that will be allocated to you on this earth is directly proportional to how much value you create for others… ...how much sound housing you can create for others. Money is an abundant resource. Well, way back in Episode 13 of Get Rich Education, more than three years ago, I did an episode called “Autonomous Cars Will Soon Disrupt Your Life and Investments”...and I talked about how this will have implications for real estate investing. Well, we’re already seeing the world go that direction. In fact, ride-sharing services are accelerating this effect. Fortune magazine just reported this in the last couple weeks here, in an article titled “Uber Really Is Killing The Parking Business”. In the article, it outlined how Ride-hailing services like Uber and Lyft are having a negative impact on the demand for parking. The picture, at least for those trying to rent you a parking spot, is bleak. In the email, unearthed from a company report by the San Diego Union-Tribune, Ace Parking CEO John Baumgardner says that demand for parking at hotels in San Diego has dropped by 5 to 10%, while restaurant valet demand is down 25%. The biggest drop, unsurprisingly, has been at nightclubs, where demand for valet parking has dropped a whopping 50%. The numbers appear to be estimates, and Baumgardner doesn’t describe a timeframe for the declines. The assessment, written last September (6 months ago now), is also limited to San Diego, though an Ace Parking executive told the Union-Tribune that it has seen “similar” declines at its 750 parking operations around the United States. The company is focused on using technology, including better parking scheduling and booking options, to try to remain healthy. But much more is at stake than the revenues of the parking business – cities stand to benefit immensely as demand for parking drops. Parking spaces and lots generate relatively little tax revenue or economic activity relative to commercial operations, and increasing sprawl may actually harm the economy of cities like Los Angeles. Even back in 2015, cities were already relaxing zoning requirements that set minimum parking allotments, and there are now even more signs that city planners are thinking differently about parking. [Now get this] - Perhaps most dramatically, a new Major League Soccer stadium being planned for David Beckham’s Miami expansion team may include no new parking at all – but will have designated pickup zones for Uber and Lyft. The decline of parking will only be accelerated if and when autonomous vehicles become widespread. That sea-change which will make it easier to locate parking at a distance from urban destinations, and could further reduce car ownership. That will be bad news for the Ace Parkings of the world – but everyone else should welcome the decline of the urban parking lot. ...and that’s “it” for the article. I told you back in Episode 13 that this will spell a dramatic shift in the character and makeup of inner-cities and suburbs alike. Right now, many U.S. cities have central agglomerations where the surface area is 40 to 60% parking spaces. When you hire a ride-share car, you didn’t need to drive your own car to work and you didn’t have to park your car. Soon autonomous cars are expected to be all over the road and they’ll just always stay in motion. You know what else this means for homes in the suburbs - homes with garages could become less desirable over time. Now, they’ll probably just repurpose the garages, but… In any case, so many trends are changing the way humans interact with real estate and the economy… The internet diminished the need for office space as that almost completely wiped out the need for things like travel agencies. The internet reduced the number of all kinds of other business like the number of bank branches. Of course, Amazon keeps killing off traditional retail consumer good purchases. Ride-share services and autonomous cars are diminishing the parking business - this one is now happening in front of our eyes - it is happening now - there’s no more “someday” on that one. ...And despite all these trends, the residential real estate space is hardly impacted. That’s why we focus on the residential space here - not only is it easier to understand because you interact with residential space every day of your life, but residential is here to stay. Well, because we’re around residential real estate every day it’s kind of paradoxical that it’s so misunderstood by so many people. When you tell a lot of people that you’re a real estate investor, oftentimes they think that you’re a house flipper, and then if they hear that you’ve got rental property, the next thing that they think about is that you must be the landlord. If you’re either of those things - especially the landlord - you’re not getting a very good ROL - Return On Life. So let’s talk about passivity. You have the ability to make real estate investing passive - and at the beginning of this show - it says that you’ve created more passive income from this show than nearly any other show in the world. Well, even if you’re “hands-off” and you’re not the landlord, it still doesn’t feel so passive if you’ve got a week where your rental property’s roof blew off and you’re looking at contractor quotes that your manager has pulled together for you and managing an insurance claim that you had to put in. Aren’t you working for your passive income a little bit then? ...and I would say that, yes, you are at that time. Your property might operate 24 hours a day, 7 days a week for many weeks in a row or even months in a row without your involvement at all. It probably operates for you passively 98 or 99% of the time or more...passively. That’s why it’s called passive income. For you, it’s hands off. You’re not fixing leaky faucets and you’re not collecting rent checks. When the problem that you have 1% of the time blows over, you’re right back to passive again. Alright, compare that to your work-a-day job. What happens when you have a problem at work? You handle it, and what happens when that problem is handled and goes away - you go right back to active income. At work whether you have a problem or whether things are going fine, it takes your involvement. ...and that’s really my point here for you. It’s NEVER passive - unless you’ve got some vacation time. Then maybe you can say your active job is just 5 or 10% passive. In real estate investing with the way we do it, passivity is the norm, not the exception. So, just keep that in mind if - not if - but when - you have to be resilient during some bumps in your “almost-always” passive real estate investment portfolio. You know, there is so much that I want to talk to you about every week that I just can barely fit it in. That’s why I do these monologue shows with no guest once in a while. I haven’t even told you about my recent RE field trips to Florida or Belize yet, though I’m really looking forward to telling you more about those here. You are really out there taking action so before you go, let me just help you with one other thing while you’re out there looking at properties. Don’t underestimate the expenses that you project that your property will have. Of course, your mortgage and all of your other expenses are 100% outsourced to your tenant in a cash-flowing property! It’s easy for you to remember that you have a mortgage payment (principal plus interest) because that’s your largest expense. You know that I’ve mentioned that an easy way to remember your other recurring expenses - which are really all of the operating expenses - because mortgage principal and interest are not an operating expenses… ...is with the acronym “VIMTUM” - and I mentioned VIMTUM last week when Clayton Morris interviewed me, but let’s hit each one of these: Vacancy – This depends on your property type, the local job market, and more. 8% of the gross rent amount is often a good number, equating to about one month per year of vacancy. If you’re in a strong job market, 4-5% might work. You’re guessing here. Insurance – Your lienholder requires you to have property insurance. Having a policy reduces your risk too. You can get quoted an exact number here. Maintenance – Now here is where a lot people underestimate this number, which can be 3% to 15%+ of the gross rent amount. This is where you must make your best guess based on the property age, history and other factors. Taxes – You have a property tax obligation, often 1 to 3% of the property value annually, depending on the area. This is an exact number that’s easy to find in county or municipal records. Utilities – In a single-family income property, your tenant typically pays utilities. The more units in a property, the more likely you’ll be paying the heat, electric, refuse, water, etc. Utility companies have historical records so you can make a close expense determination. Management – If you don’t have a Property Manager then your income isn’t passive. If you self-manage, then you must factor in your time expense. Management fees are typically 3% to 10% of the gross monthly rent amount. The more units in a building, the lower the management expense. People like easy ways to remember things. That’s why I like VIMTUM. I also made a video for you about these income property expenses where I’m talking directly to you. I’ll put that video link in the Show Notes for you. So when you connect with an income property provider at GREturnkey.com - if they haven’t - then run your own numbers on an income property using that VIMTUM acronym. Those providers are at GREturnkey.com - download a market report and get their contact information, and see what they have for inventory. It sure is thin in most markets these days. I appreciate the time that you spent with me today, but you weren’t here for me you were here for you. Until next week, I’m your host Keith Weinhold. Don’t quit your day dream! ____________________________  
June 27, 2018
#178: The media - a FOX News Anchor - asks me about Get Rich Education wealth-building principles. Rather than asking questions, I’m the one being interviewed here. I tell the interviewer why getting your money to work for you will NOT create wealth. In real estate, I tell you why your ROI typically goes down after Year One. How to calculate a real estate rate of return; the differences between poor, middle class, and wealthy; being bold; increasing income, and more is discussed. The interviewer, Clayton Morris, is an experienced real estate investor himself. If you want to buy income property: 1) Start at RidgeLendingGroup.com to see how much property you qualify for. 2) Find reputable turnkey property providers at GREturnkey.com. Want more wealth? 1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2)    Actionable turnkey real estate investing opportunity: GREturnkey.com 3)    Read my new, best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 03:48  Interview with longtime Fox News Anchor, Clayton Morris begins. 05:00  Be bold. 07:26  Increase income. This is available to anybody - no certification or degree needed. 11:56  My first four-plex, bought for $295,000 in 2002. 14:25  Self management vs. professional management. 16:30  Leverage. 19:01  Why it’s a good time to be a RE investor. 20:39  Lower middle class neighborhoods. 26:42  How RE investors actually get paid five ways simultaneously.   39:32  Why your ROI typically goes down after Year One. Resources Mentioned: RidgeLendingGroup.com ValhallaWealth.com ClaytonMorris.com GREturnkey.com GetRichEducation.com
June 27, 2018
#177: Are you serving the 40-year-to-life sentence? Today’s guest, Jerry Fetta, is a former Dave Ramsey-endorsed local provider. Jerry learned a better way and changed his life and the lives of others. There’s a more abundant way. You just can’t afford to forgo the benefits of leverage and arbitrage. Jerry is an expert at uncovering how the mutual fund industry manipulates reporting the ROI to their advantage and your detriment. Questions that put your financial advisor on the hot seat are revealed today. We discuss why “tax deferral” is a scam. I simply don’t have time to do 1-on-1 coaching. Jerry is a good friend, lives in my hometown, and he’s offering GRE listeners a free consultation. See if you’re a good fit: GetRichEducation.com/Coaching. Want more wealth? 1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2)    Actionable turnkey real estate investing opportunity: GREturnkey.com 3)    Read my new, best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 00:41  Mortgage interest rates are rising. Take action. 04:10  I used to be a debt-free, save-in-a-401(k), 15-year mortgage guy myself. 06:45  Jerry Fetta interview begins. 08:42  Jerry is a former Dave Ramsey-endorsed local provider. 11:14  Some things aren’t worth owning. 13:49  Affirmation vs. Information. 15:43  Jerry’s turning point: scarcity to abundance. 19:30  Stocks don’t produce wealth, but few make that correlation. 21:55  How mutual fund rates of return are reported: CAGR vs. AAR. 26:35  Questions to ask your financial advisor. 30:07  Tax deferral is a scam. 34:15  Case study: How Jerry helps a typical client. 39:03  The “passive income epiphany”. 43:24  Maybe someday? Come on. Integrity. 47:08  Engage with Jerry for 1-on-1 coaching free at GetRichEducation.com/Coaching. Resources Mentioned: GetRichEducation.com/Coaching RidgeLendingGroup.com ValhallaWealth.com GREturnkey.com GetRichEducation.com
June 27, 2018
#176: Stock investors are not getting ahead, but they think that they are. 10% return, minus 5% inflation, minus 2% fees, minus taxes, minus volatility, minus more. Most methods of valuing an income property are lousy. I tell you the good and the bad methods: price per square foot, price per unit, RV ratio, Gross Rent Multiplier, Cap Rate, Cash-On-Cash Return. I tell you how to avoid overpaying for property by making your offer contingent on seeing the seller’s “Schedule E”. The bustling Charlotte, North Carolina real estate market is discussed. It is growing at an enormously fast rate. Learn about using IRAs and 401(k)s for buying real estate, and leverage vs. paying all-cash for property. Want more wealth? 1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2)    Actionable turnkey real estate investing opportunity: GREturnkey.com 3)    Read my new, best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 01:06  Why stock investors aren’t getting ahead. 04:17  Real estate performs. 06:27  Mortgage interest rates are up, Fed Chair change. 07:26  How to avoid overpaying for property. 09:50  Income, expense, and financing gears. 10:03  Price per square foot, price per unit, RV ratio, Gross Rent Multiplier. 11:49  Cap Rate vs. Cash-On-Cash Return. 17:35  Avoid overpaying with Schedule E. 22:45  Charlotte, North Carolina’s rapid growth. 25:12  More appreciation, less cash flow. 29:11  Typical property is an SFHs, $100K-$120K rents $1,000+. 31:02  Using IRAs and 401(k)s to buy real estate. 35:08  Leverage vs. paying all-cash. Resources Mentioned: GetRichEducation.com/Charlotte RidgeLendingGroup.com ValhallaWealth.com GREturnkey.com GetRichEducation.com  
June 27, 2018
#175: The next twenty years will be nothing like the last twenty years. Chris Martenson of PeakProsperity.com tells you where wealth originates. It’s called primary wealth, consisting of things like trees, soil, a fishery, or a rich ore vein. The further you invest from primary wealth, the less real wealth you have. You learn about your 8 Forms Of Capital: Financial, Social, Material, Living, Emotional, Knowledge, Cultural, Time. You also learn about the future of energy. Wind and solar energy are not replacements for oil. I bring you today’s show from Anchorage, Alaska. Want more wealth? 1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2)    Actionable turnkey real estate investing opportunity: GREturnkey.com 3)    Read my new, best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 00:58  The textbook definition of wealth. 04:05  Primary, secondary, and tertiary wealth. 07:39  Chris tells us why stocks aren’t real wealth. 09:33  Why economies can’t grow to infinity. 12:35  Energy growth limits. Oil vs. renewables like wind and solar. 22:42  The 8 Forms Of Capital: Financial, Social, Material, Living, Emotional, Knowledge, Cultural, Time. 30:10  How to get more Social Capital. 37:40  Holistic wealth. Happiness levels. Resources Mentioned: PeakProsperity.com Chris Martenson’s book “Prosper” RidgeLendingGroup.com ValhallaWealth.com GREturnkey.com GetRichEducation.com  
June 27, 2018
#174: You actually want to increase your personal expenses over the long-term. What kind of financial blasphemy is this? I explain. You are worth more than you think. I tell you why. If you’re 30 and you live until age 90, you only have 60 more autumns in your life. You only have 7% of your time left with your own parents. Your quality time is valuable and fleeting. Some people have an overinflated sense about the importance of taxes. Rate of return matters more. Returns are like a pie, and taxes are only a piece of the larger pie. If your portfolio is small, do you really need an LLC for your income property? There’s a discussion of appreciation vs. cash flow. I bring you today’s show from the Dominican Republic, where I'm vacationing. Want more wealth? 1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2)    Actionable turnkey real estate investing opportunity: GREturnkey.com 3)    Read my new, best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 01:16  Over the long-term, you actually want to increase your expenses. 07:19  Why you are worth more than you think. 09:05  Measuring your life in terms of events and relationships. 20:37  If mortgage interest rates go up, rents go up next. 22:15  Rate of return is more important than tax rate. 24:16  Why do you think you need an LLC? 28:07  Real estate appreciation vs. cash flow. Resources Mentioned: Article about expenses WaitButWhy.com RidgeLendingGroup.com ValhallaWealth.com GREturnkey.com GetRichEducation.com
June 27, 2018
#173: Don’t move to a low-tax state; let your tenant do it. Quit investing only for the long-term. I explain both. Alabama is the #1 state for per capita foreign direct investment. We discuss turnkey real estate investing in Birmingham, Alabama. A revival is taking place in Birmingham amidst economically diverse business sectors. Long-term tenant retention occurs in Birmingham submarkets due to: 2-year leases, tenant-owned appliances, more. When you purchase a turnkey property, you’re also “purchasing” a tenant and their income stream. We discuss. It takes about $24K-$25K to “get into” this market with down payment and closing costs on a turnkey single-family home. We also discuss how a real estate investor gets started: lender pre-approval, writing an offer, inspection, appraisal, etc. Learn more and find Birmingham property at GetRichEducation.com/Birmingham. I bring you today’s show from Orlando, Florida. Want more wealth? 1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2)    Actionable turnkey real estate investing opportunity: GREturnkey.com 3)    Read my new, best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 01:14  Don’t move to a low-tax state. Quit investing only for the long-term. 06:14  Thriving Alabama and the revitalization of Birmingham. 10:00  Downtown Birmingham. 16:05  Primary market drivers in Birmingham: medical, automotive, Amazon sortation, education. 18:46  Neighborhood selection. 21:10  B-Class properties $80K to $125K. $1,000 rent on $104K property. 22:22  Tenant retention. 26:12  Property upgrades. 30:20  Tenant qualification. 32:38  Same rehabilitation company and management company. 36:00  City inspectors. 38:26  How you get started: lender pre-approval, writing an offer, inspection, appraisal, etc. Resources Mentioned: GetRichEducation.com/Birmingham RidgeLendingGroup.com ValhallaWealth.com GREturnkey.com GetRichEducation.com  
June 27, 2018
#172: Your market choice is more important than your property choice. One of the most prominent real estate developers in the United States, Victor Menasce, tells us how he selects a real estate market. Investing in larger metro areas is generally safer than investing in smaller metro areas because geographies are better diversified. Being invested in only one investment market is a mistake. You’re undiversified. Should you pay more or less than the construction cost of a property? Victor tells us the difference between price and value, and why that matters to you. Four factors drive price/value: 1) Construction cost. 2) Availability of money. 3) Inflation. 4) Supply and Demand. Victor is an expert at selecting markets, developing, and raising capital for deals. If you’re developing or making a large real estate investment, think about how consulting Victor could be a great investment. Connect with him at VictorJM.com. I join you from north Florida today because I’m out looking at, yes, real estate markets! Want more wealth? 1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2)    Actionable turnkey real estate investing opportunity: GREturnkey.com 3)    Read my new, best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 01:45  Investing in only one geographic market is a mistake. 02:30  Recency bias. 08:00  Investors should start with economics and the market, not the property. 11:48  People are moving south. 13:10  Primary drivers. Oil & gas. 14:25  Real estate use type: senior housing, residential, shopping malls, office, medical. 20:25  Solving problems and meeting needs. Get out from behind your desk. 23:40  Buy on the line; move the line. 25:18  Formulas and numeric rules of thumb. 27:20  Jetsons vs. Flintstones. 29:55  Relationship-based deals. 32:24  Price vs. value. 37:43  Your turnkey provider has local knowledge. Resources Mentioned: VictorJM.com GetRichEducation.com/Jax GetRichEducation.com/Orlando RidgeLendingGroup.com ValhallaWealth.com GREturnkey.com GetRichEducation.com  
Loading earlier episodes...
    15
    15
      0:00:00 / 0:00:00