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Rank #55 in Investing category

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Get Rich Education

Updated 5 days ago

Rank #55 in Investing category

Business
Careers
Investing
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This show has created more financial freedom for busy people like you than nearly any show in the world.Wealthy people's money either starts out or ends up in real estate. But you can't lose your time. Without being a landlord or flipper, you learn about strategic passive real estate investing to create wealth for yourself. I'm Show Host Keith Weinhold. I also serve on the Forbes Real Estate Council and write for Forbes. I serve you ACTIONABLE content for cash flow on a platter. Our bottom line in real estate investing together is: “What’s your Return On Time?” Where traditional personal finance merely helps you avoid losing, you learn how to WIN. Why live below your means when you can expand your means?Since 2002, international real estate investor Keith Weinhold owns multifamily apartment buildings to single family homes to agricultural real estate. New episodes are delivered every Monday.

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This show has created more financial freedom for busy people like you than nearly any show in the world.Wealthy people's money either starts out or ends up in real estate. But you can't lose your time. Without being a landlord or flipper, you learn about strategic passive real estate investing to create wealth for yourself. I'm Show Host Keith Weinhold. I also serve on the Forbes Real Estate Council and write for Forbes. I serve you ACTIONABLE content for cash flow on a platter. Our bottom line in real estate investing together is: “What’s your Return On Time?” Where traditional personal finance merely helps you avoid losing, you learn how to WIN. Why live below your means when you can expand your means?Since 2002, international real estate investor Keith Weinhold owns multifamily apartment buildings to single family homes to agricultural real estate. New episodes are delivered every Monday.

iTunes Ratings

449 Ratings
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419
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7
3
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This podcast will make you wealthy!

By The Pizza King! - Dec 24 2019
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If you take action on the education that Keith puts out week after week, you will build wealth. Do yourself a favor and apply the knowledge to your life.

Fantastic podcast

By Ken K. from Cali - Feb 24 2019
Read more
Awesome and accurate advice. Must listen

iTunes Ratings

449 Ratings
Average Ratings
419
12
7
3
8

This podcast will make you wealthy!

By The Pizza King! - Dec 24 2019
Read more
If you take action on the education that Keith puts out week after week, you will build wealth. Do yourself a favor and apply the knowledge to your life.

Fantastic podcast

By Ken K. from Cali - Feb 24 2019
Read more
Awesome and accurate advice. Must listen
Cover image of Get Rich Education

Get Rich Education

Latest release on Jan 13, 2020

Read more

This show has created more financial freedom for busy people like you than nearly any show in the world.Wealthy people's money either starts out or ends up in real estate. But you can't lose your time. Without being a landlord or flipper, you learn about strategic passive real estate investing to create wealth for yourself. I'm Show Host Keith Weinhold. I also serve on the Forbes Real Estate Council and write for Forbes. I serve you ACTIONABLE content for cash flow on a platter. Our bottom line in real estate investing together is: “What’s your Return On Time?” Where traditional personal finance merely helps you avoid losing, you learn how to WIN. Why live below your means when you can expand your means?Since 2002, international real estate investor Keith Weinhold owns multifamily apartment buildings to single family homes to agricultural real estate. New episodes are delivered every Monday.

Rank #1: Live Before You Die

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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

Jan 09 2019

5mins

Play

Rank #2: 104: T. Harv Eker | Secrets Of The Millionaire Mind

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

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

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Find turnkey real estate investing opportunities.

Listen to this week’s show and learn:

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

09:04  Thoughts > Feelings > Actions > Results

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

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

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

20:35  Are rich people evil?

26:08  Is it ethical to make passive income?

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

34:50  The Bible and wealth.

39:14  Dealing with your disapproving family members.

44:28  Seminars.

45:10  How to win the money game.  

50:31  The importance of passive income is freedom.

55:20  “SpeedWealth” has 8 principles.

Resources Mentioned:

Get SpeedWealth free at HarvEkerOnline.com/GRE

Secrets Of The Millionaire Mind - book

CorporateDirect.com

NoradaRealEstate.com

RidgeLendingGroup.com

GetRichEducation.com

Oct 07 2016

1hr 1min

Play

Rank #3: 269: How Wealthy People Think

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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

Dec 02 2019

37mins

Play

Rank #4: 249: Beginner's Real Estate Investing Guide

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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! 

Jul 15 2019

54mins

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Rank #5: 66: Wire Your Mind For Wealth

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#66: Learn some broad approaches to getting more money for a down payment so that you can buy income property sooner.

Keith also looks at methods of acquiring passive income other than real estate investing.

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

Listen to this week’s show and learn:

02:14  Real estate can build massive passive income - this is buy-and-hold real estate, not flipping or wholesaling.

03:36  Why you need to buy time, not sell time.

07:34  Focus on increasing income, not cutting expenses.

10:00  How to approach the classic “time vs. money” conundrum.

12:04  Here’s how much the average American investor lost last year.

15:28  Keith is adamant that we still have inflation today.

16:28  Here’s how wealthy people choose their friends.

24:51  The next episode features an Atlanta Market Profile.

26:28  “How To Win Friends and Influence People”

32:12  Your network determines your net worth. Mastermind groups.

33:09  This is what broke people (broke mindsets) say.

34:03  Want to accumulate liquidity faster? Don’t get a part-time job. Do this instead.

35:58  Passive income from real estate versus: patent royalties, trademarks, original works of art, stock dividends, etc.

37:40  When you were a kid, your parents never told you, “Don’t be broke.”

Resources:

How To Win Friends and Influence People” - The classic Dale Carnegie self-help book

Business Insider article quoted: BusinessInsider.com/rich-people-choose-friends-2014-12

VisualCapitalist.com

MidSouthHomeBuyers.com or call (901) 217-4663 for Top-Notch Turnkey Rental Properties.

NoradaRealEstate.com or call (800) 611-3060. Your Premier Source for Nationwide Turnkey Cash-Flow Investment Property.

GetRichEducation.com - that’s where to subscribe to our free newsletter, receive turnkey real estate webinar opportunities, and see all Events.

Download the GRE Android App at Google Play to keep the GRE icon right on your phone’s home screen!

We would be so grateful if you wrote a review! Here’s how to write one at: iTunes, Stitcher, and Android.

To get a free GRE logo decal for your review, send: 1) A screenshot of your review. 2) Your mailing address to: Info@GetRichEducation.com

Jan 15 2016

41mins

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Rank #6: 6: Here’s Why You Aren’t Financially Free

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#6: Would you rather be debt-free or financially-free?

Did you know that for most people with home mortgages, their approach to home equity management actually prevents them from being financially free?

In this no-holds barred episode, which includes material that has shocked some of Keith’s students, your paradigm with what you thought was true about money management can shift dramatically. 

Homes are for housing people. Not storing cash. 

Opportunity cost is opportunity lost. 

Learn about one of the greatest under-utilizations of using OTHER PEOPLE’S MONEY in order to achieve the freedom that you and your loved ones seek. 

Nov 21 2014

37mins

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Rank #7: 151: Quitting Your Job For Passive Income with GRE Listener Douglas Orr

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#151: Your job feels bad. It makes you wonder where your time went. Keith tells you why your job feels so bad, gives you possible solutions, and reminds you “where your time went”.

Your job feels worse than ever due to economic, demographic, and social reasons. This is supported by data from the Bureau Of Labor Statistics, the Census Bureau, Bloomberg, and elsewhere. We explore.

GRE listener Douglas Orr tells you how he built enough passive income to leave his job in just three years by quickly accumulating 50 rental doors. He respects his time by outsourcing property management.

Douglas began RE investing by pulling $20,000 out of his 401(k) to buy a duplex and triplex.

Want more wealth?

  1) Grab my free newsletter at: GetRichEducation.com

  2) For actionable turnkey real estate investing opportunities: GREturnkey.com

  3) Read my new, best-selling book: GetRichEducation.com/Book

Listen to this week’s show and learn:

02:01  Keith likes the new Apple AirPods wireless headphones.

03:46  “Where did your time go?” Keith answers.

05:58  Why your job feels so bad.

14:58  Straight out of high school, GRE listener Douglas Orr began working in an automotive factory. He lost control of his time.

16:29  Turning point: pulling $20,000 from his 401(k) to buy a duplex and triplex.

20:05  Beating the “one percent” target.

22:00  Managing managers less than four hours per week.

24:50  Douglas built his portfolio fast through shrewd equity management. He tells how.

27:42  Firing your boss.

29:53  Quitting your job: supportive family?

31:35  Caution: don’t do THIS before quitting your job.

34:26  You quit your job? Then what do you do all day?

37:28  Controlling $100 million worth of real estate.

Resources Mentioned:

Douglas Orr: greensburg.alpha@gmail.com

Douglas Orr on Facebook

Bureau Of Labor Statistics

RidgeLendingGroup.com

NoradaRealEstate.com

MidSouthHomeBuyers.com

GetRichEducation.com

GREturnkey.com

Jun 27 2018

42mins

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Rank #8: 84: Robert Kiyosaki | The Rich Don’t Work For Money | Rich Dad Radio Show: In-Your-Face Advice on Investing, Personal Finance, & Starting a Business

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

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

Listen to this week’s show and learn:

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

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

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

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

19:36  What Kiyosaki learned from Donald Trump.

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

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

25:24  Economic Crash of 2016?

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

30:05  How to invest $100,000 today.

33:38  Kiyosaki is buying oil.

36:50  Giving to others.

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

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

42:09  QE, Inflation, and Gold.

46:53  Interview recap.

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

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

Resources Mentioned:

Rich Dad, Poor Dad

Rich Dad Website

Corporate Direct

Norada Real Estate

Coffee@GetRichEducation.com

The Real Estate Guys Investor Summit At Sea

Get Rich Education Website

Want a free GRE logo decal? Just write a podcast review; here’s how at: iTunes, Stitcher, and Android. Send: 1) A screenshot of your review. 2) Your mailing address to: Info@GetRichEducation.com for your decal.

May 20 2016

57mins

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Rank #9: 98: Cap Rate, Cash-On-Cash Return, and Equity Management

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

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

Listen to this week’s show and learn:

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

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

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

11:51  Neighborhood character affecting valuation.

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

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

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

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

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

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

Resources Mentioned:

CorporateDirect.com

NoradaRealEstate.com

RidgeLendingGroup.com

GetRichEducation.com

Aug 26 2016

40mins

Play

Rank #10: 65: What’s Better? Single Family Home or Multifamily Apartment Investing

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#65: There are numerous pros and cons of both Single Family Home Investing vs. Multifamily Apartment Investing. What’s better for you?

At the end of the show Keith selects which one he believes is better for 2016 and 2017.

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

Listen to this week’s show and learn:

01:18  Single family homes attract better tenants than apartments. Here’s a new way to think about this.

04:16  The best investment that Keith plans to make in 2016 is next month’s Investor Summit At Sea.

09:56  Property cost.

10:19  School district.

10:53  Interest rates.

11:15  Here in 2016, it's now easier to get loans for more than 10 single family homes.

11:55  Property Maintenance, Utilities, Property Management.

14:22  Cash Flow, Location.

18:33  Tenant quality, tenant psychology, tenant turnover.

22:02  Appreciation rates in both property types.

23:00  Management fees, asset liquidity, your level of control.

26:56  Exit Strategy - your options for selling both property types.

30:09  Keith selects which property type he thinks is better in 2016 and 2017.

Resources:

GetRichEducation.com/Events - Learn about The Real Estate Guys Investor Summit At Sea.

MidSouthHomeBuyers.com or call (901) 217-4663 for Top-Notch Turnkey Rental Properties.

NoradaRealEstate.com or call (800) 611-3060. Your Premier Source for Nationwide Turnkey Cash-Flow Investment Property.

GetRichEducation.com - that’s where to subscribe to our free newsletter, receive turnkey real estate webinar opportunities, and see all Events.

Download the GRE Android App at Google Play to keep the GRE icon right on your phone’s home screen!

We would be so grateful if you wrote a review! Here’s how to write one at: iTunes, Stitcher, and Android.

To get a free GRE logo decal for your review, send: 1) A screenshot of your review. 2) Your mailing address to: Info@GetRichEducation.com

Jan 08 2016

33mins

Play

Rank #11: 146: Using Debt For Investment

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#146: Debt is good. Debt is bad. Which type is good and which type is bad?

When your tenant is paying your debt for you, that’s good debt. When you have consumer debt, that’s usually bad. But Keith contends that consumer debt can almost be good for some savvy investors that use debt for arbitrage.

If you could have gotten a 3% loan on your car, but instead you chose to pay cash, then you’re probably paying an opportunity cost.

In real estate, the return from equity is always zero. Debt replaces that zero-return equity. But would you ever pay all-cash for your property? Keith is a “leverage guy”, but yet he gives reasons for when and why you would want to pay all-cash.

Would you borrow $100K from 0% APR credit cards to create arbitrage? Some do.

Mortgages, Home Equity Lines Of Credit, Federal Funds Rates, automobile loans, student loans, and credit card debt are all discussed.

Ultimately, you would rather be financially-free rather than debt-free.

Grab Get Rich Education’s new book at GetRichEducation.com/Book

Want more wealth? Visit: 1) GetRichEducation.com to grab our free newsletter.  2) GREturnkey.com for actionable turnkey real estate investing opportunities.

Listen to this week’s show and learn:

01:25  “Eliminate all debt” is just too simple to be true.

04:31  Why pay down mortgage principal at all?

05:50  A mortgage is a one-way street. HELOCs are a two-way street.

08:06  Robert Kiyosaki clip.

11:04  Consumer debt and arbitrage.

12:30  Increasing interest rates.

13:25  Higher FICO scores and Debt-To-Income Ratio limits.

15:05  Interest rates have never been this low while the job market is at full capacity.

16:29  Credit card arbitrage.

23:15  Here’s when and why to pay all-cash for a property.

26:10  Ryan Daniel Moran clip.

Resources Mentioned:

Consumers May Get Credit Score Boost

DTI Change From 45% To 50% Maximum

NoradaRealEstate.com

MidSouthHomeBuyers.com

GetRichEducation.com

GREturnkey.com

Jun 27 2018

33mins

Play

Rank #12: 177: A Dave Ramsey Disciple Transformed Into An Income-Centric Wealth Coach featuring Jerry Fetta | The Dave Ramsey Show

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#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

Jun 27 2018

51mins

Play

Rank #13: 264: Keith Weinhold & Grant Cardone “10X” Your Wealth

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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

Oct 28 2019

42mins

Play

Rank #14: 44: How A Four-Plex Building Can Be Your Massive Wealth Generator (1 of 2)

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#44: A four-plex apartment building can be your major wealth catalyst with an FHA loan and your small 3.5% down payment.

Live in one of the four units and rent out the other three. It’s exactly how Keith began investing in real estate.

Subscribe on iTunes so you never miss an episode.

Listen to this week's show and learn:

03:05  Why a four-plex rather than another property type?

04:35  How to put as little as a 3.5% down payment on a four-plex apartment building with an FHA loan.

06:19  Common objections to owning a four-plex this way.

09:28  Different four-plex layouts - townhouse style vs. apartment style.

12:32  Do you live in a geographic market favorable to “owner-occupying” a four-plex? Here are some indicators.

14:30  Running the numbers.

16:09  Leverage creates wealth for you in an appreciating environment. But if the market loses value, leverage can become difficult for you.

20:48  Preparation: how to position your affairs to buy a four-plex.

23:35  Property selection considerations.

26:46  How to structure your purchase offer with the seller to your advantage.

30:25  By buying a four-plex, you’re starting off bigger than most well-known real estate investors have. Most people simply don’t consider buying four-plexes with FHA loans.

Resources mentioned:

MyFico.com

TheLandGeek.com/GRE and MidSouthHomeBuyers.com

Visit our website at GetRichEducation.com to subscribe to our newsletter or see all Events.

Download the GRE Android App at Google Play and keep the GRE icon right on your phone’s home screen!

We would be grateful if you wrote a review! Here’s how to write one at: iTunes, Stitcher, and Android.

Aug 14 2015

33mins

Play

Rank #15: 114: U.S. Geography and Real Estate Investing with Peter Zeihan

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#114: Your mental map is stimulated today as we discuss what geographies will be prosperous for real estate investors.

Geopolitical Strategist Peter Zeihan of Zeihan.com takes us on a virtual cross-country journey economically, geographically, and demographically.

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Find turnkey real estate investing opportunities.

Listen to this week’s show and learn:

03:46  The Mississippi River System promotes continental commerce. Luckily, it’s superimposed atop the U.S. agricultural belt.

06:47  Demographic luck.

13:54  Capital flight to “Gateway Cities”: Toronto, Montreal, Vancouver, Santa Monica, San Francisco, Seattle, New York City, and Miami.

17:38  “Reinvented Cities”: Oklahoma City, Austin, Salt Lake City, Charleston (SC).

20:05  Migration to low-cost-of-living cities.

25:27  New England.

26:58  New York.

28:42  Pennsylvania.

31:44  New Jersey through DC to the Carolinas.

34:22  Georgia.

36:21  Florida.

38:12  Alabama.

40:53  Tennessee.

43:12  Great Lakes Region.

44:11  Missouri.

45:16  Arkansas & Louisiana.

46:58  Texas.

50:01  Upper Great Plains.

51:07  Denver and Salt Lake City.

53:16  Arizona and Nevada.

56:53  California.

59:33  Washington and Oregon.

62:47  Alaska and Hawaii.

Resources Mentioned:

Zeihan.com

TheRealAssetInvestor.com/GRE

CorporateDirect.com

RidgeLendingGroup.com

GetRichEducation.com

Dec 16 2016

1hr 10mins

Play

Rank #16: 97: Assisted Living Homes Create Massive Cash Flow with Gene Guarino

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

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

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

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

Listen to this week’s show and learn:

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

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

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

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

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

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

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

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

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

19:43  Zoning, Licensing, Liability Insurance.

27:13  How do you find an ALH?

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

32:39  Financing.

37:15  Occupying your ALH with residents.

39:27  “Mom & Pop” ALHs.

42:04  Caring for others.  

43:35  What does an ALH manager do?

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

Resources Mentioned:

RALAcademy.com

CorporateDirect.com

NoradaRealEstate.com

RidgeLendingGroup.com

GetRichEducation.com

Aug 19 2016

50mins

Play

Rank #17: 268: How To Double Your Real Estate Return (BRRRR)

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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

Nov 25 2019

42mins

Play

Rank #18: 82: How To Buy An Income Property: Step-By-Step

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#82: Your offer is accepted, your Earnest Money goes into to escrow, then your property has an Inspection, Appraisal, and more - all the way to closing.

We discuss those steps, tell you what your action items are, and discuss how long the income property-buying process takes.

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

Listen to this week’s show and learn:

02:00  Robert Kiyosaki will be our guest in two weeks.

04:11  Why we’re embarking on the best decade ever for income property investing.

05:41  Why would anyone sell you a cash-flowing property? Many reasons given.

11:59  How to identify a winning income property: RV Ratio, eliminate your emotion, turnkey buying.

17:48  Investors get excited by the next deal. Remember to protect what you have.

19:20  What your Mortgage Loan Officer needs from you. Pre-approval letter.

20:22  Can you negotiate the property price with turnkey providers? Yes.

21:15  Submitting your Earnest Money.

23:03  Get a professional Property Inspection. What to expect.

27:17  Your Property Management Agreement.

28:21  Property Insurance.

29:18  Get a relationship with your Property Manager.

31:42  Your Property Appraisal.

33:23  Mobile Notary.

35:42  Real estate’s lack of liquidity contributes to its price stability.

36:14  You need to act. You won’t make money from the property that you don’t own.

Resources Mentioned:

CorporateDirect.com - Garrett Sutton’s company builds your business structure and protects your assets. Mention “Get Rich Education” for a free bonus.

NoradaRealEstate.com or call (800) 611-3060. Your Premier Source for Nationwide Turnkey Cash-Flow Investment Property.

MidSouthHomeBuyers.com - Top-Notch turnkey rental property in Memphis, Tennessee.

GetRichEducation.com - that’s where to subscribe to our free newsletter, receive turnkey real estate webinar opportunities, and see all Events.

Download the GRE Android App at Google Play to keep the GRE icon right on your phone’s home screen!

Want a free GRE logo decal? We’ll send you one if you write a podcast review! Here’s how to write one at: iTunes, Stitcher, and Android.  Send: 1) A screenshot of your review. 2) Your mailing address to: Info@GetRichEducation.com for your decal.

May 06 2016

39mins

Play

Rank #19: 126: Robert Kiyosaki | You Are The President Of Your Own Life

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#126: Robert Kiyosaki is our guest today. He’s the #1 Selling Personal Finance Author Of All-Time. He’s authored numerous titles, including the mega-popular “Rich Dad, Poor Dad”.

He leads the Rich Dad Company, whose mission is “Elevating the financial well-being of all humanity.”

Don’t work for money. Let your assets produce money for you.  

Kiyosaki’s enduring mantras include: The Rich Don’t Work For Money | Your House Is Not An Asset | Don’t Live Below Your Means, Expand Your Means | Savers Are Losers, Debtors Are Winners and countless other influential quotes and statements.

Keith hosts today’s show from Anchorage, Alaska.

Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive turnkey real estate investing opportunities.

Listen to this week’s show and learn:

02:12  The power of the book “Rich Dad, Poor Dad”.

04:23  Robert Kiyosaki interview begins.

05:12  Kiyosaki: Our school system is corrupt.

07:36  The Communist Manifesto (1848) by Karl Marx and Friedrich Engels.

10:16  If you own enough production, you won’t work for money.

11:16  Dying capitalism in the United States.

13:05  “Don’t live below your means. Expand your means.”

15:25  Kiyosaki adds 300-400 properties to his portfolio annually.

16:39  “Printing money on demand.”

18:17  Oil prices.

21:21  You Are The President Of Your Own Life.

24:28  Before buying real estate, consider the amount of debt you can get. Net Operating Income. Consumer Debt vs. Investor Debt.

26:44  20th Anniversary Edition of Rich Dad, Poor Dad.

29:18  The rich, middle class, poor. Concern about a crash. Debt and taxes.

30:32  What can the everyday person do?

31:04  Kiyosaki: We’re going into a depression.

34:45  Weinhold on debt.

36:10  Eight old rules of wealth. It’s faulty financial programming.

39:35  Ripping 401(k)s.

41:16  Telling yourself the truth.

41:53  Donald J. Trump. Keith gives a political opinion.

Resources Mentioned:

RichDad.com

Amazon: Rich Dad, Poor Dad

NoradaRealEstate.com

TheRealAssetInvestor.com/GRE

HighlandsMortgage.com

MidSouthHomeBuyers.com

GetRichEducation.com

Mar 10 2017

48mins

Play

Rank #20: 4: Stocks vs. Real Estate: The Showdown!

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#4: We answer your listener questions, including:

“How do I begin real estate investing with little or no money?”

“What are your tips for starting a business?”

“How do I increase income on an existing rental property?”

Next, is the classic showdown. Which is the better asset class – Stocks or Real Estate? We list fifteen key criteria, comparing stocks and real estate, and see which asset class wins more of the fifteen rounds in this heavyweight face-off!

Especially insightful is Keith’s description of how using a loan in real estate investing hedges one against inflation over the long-term. 

Real estate’s stability as an asset class is featured as one distinct advantage. It includes a fascinating explanation as to why stability provides you with better returns than volatility.

Nov 07 2014

37mins

Play

275: Go Out On A Limb

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Most people sell their time for dollars.

Were you really meant to do what you’re doing right now?

Mark Twain said, “Why not go out on a limb? That’s where the fruit is.”

Culture conditions most people to live an average, stale life.

Don’t trade away your authenticity for approval.

In over 6,000 years of human history, being a conformer is not a success recipe.

40 rental doors x $150 cash flow = $6,000 per month. This buys you time.

Don’t fear failure; fear not trying. 

Powerful assignment: write your own obituary.

No one achieves anything extraordinary by playing it safe.

People that say, “I want to live frugally.” actually want to say, “I want to live well.” 

But they don’t know how.

Get residual real estate income at: www.GREturnkey.com

I update you on asset class prices over the past year.

Americans paid $4.5T in rent this past decade.

The median homebuyer age is up to 47.

Corelogic expects a 5.4% housing price jump in 2020.

Housing shortages should continue at the low end of the market.

Nearly every news outlet reports a stable housing environment.

Why? Demand exceeds supply, appreciation rates are sustainable, stringent loan requirements, inflation-adjusted home prices are often still below 2005 levels.

The entire episode's lyrics are at the bottom.

___

Resources mentioned:

Turnkey income properties:

GREturnkey.com

Americans Paid $4.5T Rent Last Decade:

Zillow article

Median Age Of Homebuyers Up To 47:

HousingWire article

Fannie Boosts 2020 Housing Forecast:

CNBC article

Lenders, Builders More Conservative:

CNBC article

Home Prices To Rise In 2020:

Yahoo Finance article

Homes Under $250K Near Extinction:

HousingWire article

Mortgage Loans:

RidgeLendingGroup.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. Mark Twain said,“Why not go out on a limb? That’s where the fruit is!” 

I tell you how YOU can go out on that limb to get that fruit - that prosperity in your life.

And, and update on markets and housing here in the new decade. Today, on Get Rich Education.

Welcome to Get Rich Education, I’m your host, Keith Weinhold.

This is Episode 275 ... and you know something?

It has always fascinated me that people will trade time for dollars. You have traded your time for dollars … and I have sold my time for money in the past, as well.

Yeah, amazes me that people will work, often doing something that they don’t EVEN LIKE - and spend that time away from their family or for things that they don’t enjoy doing … just for money.

It’s actually even worse than that. The long-term plan - the OUTCOME for this sacrifice - isn’t even satisfying. It’s for you to retire old, and THEN only begin to really live … maybe.

Well, ironically, the answer to your potential freedom is something that you actually slept inside last night - a piece of real estate. 

But you need to invest in real estate in a strategic way. You don’t need to be a landlord and you don’t need to know how to fix things - but few know the way.

Here on this show, I simply tell you the things that I would have wanted to know before I started down this road to freedom back in 2002, which is when I bought that seminal four-plex building.

You are where you are today because of you.

Your life isn’t a fluke and it isn’t an accident either. You are where you are because of your choices.

Well, let me ask you - were you meant to be doing what you’re doing now?

Were you put on this earth to do … that?

You probably know definitively without me even having to get specific - you already know - yes or no - if you were MEANT to be doing what you do for money now.

See, the #1 limiting reason that people give for why they can’t do something that they really want to do in their life … is … money.

So, time vs. Money is something that we discuss a lot on the show. It’s something that’s infinitely interesting to me … and what you need to do is “Go Out On A Limb”.

I’m going to discuss that with you a lot more later today.

But first, since we’re a few weeks into this new decade, let’s talk about some more broad and contemporaneous news items - this investor environment that you live inside every day.

Whipping around the asset classes like we do from here time-to-time here - in the year that was, last year, what really happened?

S&P 500 was up nearly 29% - it’s best performance in years. Of course, it’s volatile. In fact, it was just DOWN 6% the previous year.

Year-over-year, many commodities were up. Gold was up 18%, Silver up 15%. Oil - Light Sweet Crude - was up 22%.

Recession fears peaked back in September - four months ago. Columnists and economists and everyday people don’t really talk about recession as much as they did late last year.

Last year, the 10-year Treasury Note yield fell seven-tenths of one percent down to 1.9%. Now, why do you care about what you’ll hear people just shorten and call “the 10-Year T-Note?”

Economists say it that way with their slang.

That is because it’s the rate most closely tied to long-term mortgage interest rates.

I just told you that the note yield fell SEVEN-TENTHS of one percent last year.

Well, see, the most popular mortgage in America, the fell EIGHT-TENTHS of one percent last year down to 3.7%. That’s the 30-year loan.

So, pretty closely correlated. And of course, that’s the mortgage interest rate for primary residences. For investment property, it’s often nearly one percent higher.

Last year, the Freddie Mac House Price Index was up 3.6%.

I like to look at the Freddie Mac Index because it includes pricing for all 50 states and Washington, D.C.

The Case-Shiller Housing Price Index only measures 10 to 20 large cities.

One news story that we experienced in the past year is one that almost no one talks about. 

Now, you generally want there to be higher wages out there. That means your tenants can afford to pay you more rent.

Higher wages mean higher inflation which means higher asset prices and also, faster debasement of debt that you owe.

Now, whether you agree that there should be a minimum wage or not ...

The minimum wage keeps getting higher across the country. 

More than 20 states are bumping up pay for minimum wage workers this year, here in 2020, while Seattle’s large employers will now pay a nationwide-high of at least $16.39/hr to employees. 

Meanwhile, the FEDERAL minimum wage has remained parked at $7.25. But these higher state wages - are a positive for real estate investors.

Now, I’ve aggregated a number of news stories that matter to you - all that have published over the past few weeks. Just about everything is positive for a stable housing environment.

Zillow report an astonishing figure.

Over the last decade, do you have any idea how much Americans paid in rent - in total?

Americans paid $4.5 TRILLION - with a “T” - dollars in rent in the last decade - the decade that just ended a couple weeks ago - the 2010s.

Well, that’s a gigantic number. It’s so giant, that it’s more of a fun figure to contemplate and hard to put it into context.

What CAN you compare this to? Well, this is greater than the GDP of Germany - which is the world’s 4th-largest economy.

Yes, it’s been a rather lucrative decade for landlords - partly due to the fact that the homeownership rate fell through the decade and - consequently - there are more renters now.

So, yes, you only need a small slice of this $4.5T dollar pie to win a substantial degree of financial freedom yourself.

Housing Wire has reported on what the median age of a homebuyer is in America today. Do you have any idea what that age is?

Well, I’ll tell you, to give you some context here, that in 1981, the year that Ronald Reagan first became President, the median age of a homebuyer then was … 31. 

Age 31 back in 1981.

The median age of a homebuyer today is … higher than that. Just dramatically higher. Almost unbelievably higher … it is age 47. 47!

So … how did this happen?

There are VARIOUS reasons for this delay, including a dramatic increase in student loan debt - like we’ve discussed before - and a general shifting of attitudes towards the traditional homebuyer cycle. 

People are waiting longer to marry, have kids, and buy houses. Household formation is postponed now.

These are some things that you’ve already realized. But you may be surprised to learn that the RESULT of this is now a 47-year-old median age homebuyer.

That’s like … old enough to be a grandparent perhaps.

Just remarkable - and again, great news if you’re renting property to others. People are renting longer - or just renting forever.

Now understand something else - and look, you can’t discriminate against a tenant based on age or for any other reason. 

But just think about what else this means - there’s a renter pool today with more, say, 35 and 40-year-olds in it than there used to be …

… and therefore, a smaller proportion of 25-year-olds. 

You have this aging of tenants … and older tenants tend to live more quietly in your property and be more gentle on your housing unit.

Long-term demographic trends exactly like these are why we talk about what we talk about here - how everyday, busy people and working professionals can create residual income with these investment properties.

CoreLogic expects a 5.4% home price jump in 2020. Yes, this would be a greater appreciation rate than that 3.6% we saw last year.

Fannie Mae has significantly boosted ITS 2020 housing forecast. 

Overall housing DEMAND, they say, is incredibly high, especially at the lower end of the market, which is exactly the end of the market where builders are least active. 

Prices are rising fastest on the low end, sidelining some first-time buyers.

Fannie Mae’s Chief Economist Doug Duncan says: “Housing appears poised to take a leading role in real GDP growth over the forecast horizon for the first time in years, further bolstering our modest-but-solid growth forecasts through 2021.”

Now, CNBC recently reported that: 

U.S. homebuilders and lenders are to blame for the country’s housing shortage, Marcus & Millichap CEO Hessam Nadji said.

Home construction companies have reduced speculation and lowered risk-taking in an effort to prevent “the lessons — if you will, the hard lessons — learned in the  2008-2009 Housing Crisis & Great Recession - from happening again,” is what he said.

“All of that is frustrating from a consumer perspective, but it’s actually very healthy from an investment and economic perspective for the U.S. as a whole,” he said.

Yahoo Finance - really all these news outlets are reporting various sources that home prices are expected to rise modestly and that housing shortages are expected to continue.

Rather than reporting on another similar story about this … I’ve been saying for years on this show that if you’re waiting for housing prices to drop substantially … well, anything is possible. 

But I don’t see what could possibly make that happen.

And that’s primarily due to three or four reasons that housing stays firm:

  • The #1 reason - the chief one is that housing demand exceeds supply. That’s just basic economics. And the housing crash of … now 13 years ago ... was due to the opposite condition. Back then, there was overbuilding - back then supply exceeded demand.

  • The second of three reasons is that appreciation rates ARE sustainable: Less than 4% per annum lately. Leading up to the housing crash, they were TEN TIMES that in some markets - totally unsustainable.

  • The third reason that supports housing is that lending practices are responsible. To get a loan, you DO need to supply a somewhat-annoyingly high amount of documentation. You need to have income, reserves, and some decent credit. That didn’t happen in the Great Recession buildup either - ANYONE qualified - and then that ARTIFICIAL demand helped push up home prices unsustainably.

  • Really a fourth reason - or a bonus - is that once you adjust for inflation - which so many people and even reporting outlets forget to do - many housing markets still haven’t even reached their pre-recession peak from way back in 2005.

So, these 4 reasons to be bullish about housing are all MY takes.

Links to all of the articles that I cited are in the show notes.

Next week, Tom Wheelwright returns to the show with me. Yes, it’s the long-awaited show where it’ll be Weinhold and Wheelwright on 401(k)s and going deep on how you can obtain the desired “RE Professional Designation” and the GREAT tax advantages that that gives you.

Are 401(k)s worth contributing to - even if you get an employer match? We’ll take that one head-on next week. And I think you’re going to get some really surprising answers.

During the holidays a while back, we had all FRESH shows. San Diego-based Get Rich Education listener Andrew Stanton - and his layoff story reminded us of the importance of having multiple income streams. 

Should you - as they say “Rent out your backyard” with an ADU - accessory or auxiliary dwelling unit. Well, in places like California where they’re popular ...

Why don’t you instead enjoy your backyard and invest in markets in the Midwest & South where the numbers make better sense anyway.

Two weeks ago, CFP Brent Sutherland & I discussed why conventional financial advisors don’t discuss RE with you.

Last week, we had the “hands-on” perspective with Kevin Cross, asking, “Should you self-manage your rental property and your tenants?” 

For him, the answer is “yes” - with some help - and that’s fine. 

For me, the answer is “no”.

I want control without having day-to-day responsibility. 

Let’s do good in the world and provide people with clean, safe, affordable, functional housing. But I make sure my manager does that.

I want to directly invest in real estate, with property titled in my own name - that way I get paid up to 5 different ways.

But, I don’t want it - I’ll say in my grip - as in - I don’t want to hold real estate right in my hand - otherwise it’s on my plate & on the front burner. 

But I do want it within my arm’s reach so that I have CONTROL, and yet a FAIR measure of passivity.

If you want more out of your life, you’ve got to go out on a limb. I’m going to talk about that with you today … next … I’m Keith Weinhold.

This is Get Rich Education. 

___

Welcome back to Get Rich Education. I’m your host, Keith Weinhold.

When it comes to your day job ... or how you spend most of your waking day, were you meant to be doing what you’re doing now?

I think that a lot of people get culturally conditioned that you have one path that you just MUST take throughout life, and if you deviate from it too much, that’s bad … because now you’re a non-conformer.

Yes, one path.

This narrative through the Industrial Revolution that you should go to school, get this amount of formal education, this amount of college debt, a good job, work for one company, marriage, kids, buy a big house …

… get a new car every 5 years, just 2 or 3 weeks of vacation per year (my goodness - are you kidding me?), work for 40 years, then retire & play golf … or something like that. 

That’s what’s supposed to quote-unquote “guarantee” the masses happiness, fulfillment, and meaning. But it often doesn’t. 

So why settle for what the masses do?

People are willing to trade away their authenticity for approval. Rather than being authentic, they instead settle for society’s stamp of approval.

Don’t trade away your authenticity for approval.

Parents, community, friends - they all taught you - here’s the one way you have to live.

Why don’t you, instead, custom design your best life.

What does success look like to you?

Is success being a doctor, lawyer, dentist. If you drive “this” nice of a car, or if you live in this neighborhood, or this nice of a house, if your kids go to this school.

Instead, your definition of success may very well be - are you doing the things that you dreamed about? Are you impacting others in a meaningful way?

You can either live a life of safety or a life of creativity.

Go out on a limb - where that tree branch might yield a little, 30 feet above the ground, scaring you. 

Go out on a limb … because that’s where the fruit is.

Understand that the consequence might be that fewer people will PERCEIVE you as a success.

How you make your money is more important than how much money you make. 

We’re “Get Rich Education - and “Get Rich” means living a rich life - whatever that means to you.

When you’re young & people ask you “What do you want to be?” when you grow up, they’re not REALLY asking what you want to be at all. 

They’re asking, “What do you want to do professionally, to earn money?” 

It feels risky to say what you REALLY want to be.

It feels risky to use an online platform to try to crowdfund your kitchen device invention. You’re afraid you’ll be seen as a failure when you share that on Facebook and get ridiculed from your friends.

That’s going out on a limb.

Trying to get your workout app featured on Shark Tank - that’s not being a conformer. But that’s where the great stuff happens.

Or, it’s doing what we focus on here - getting residual income from rental property to buy the time to do what you want to do ... or be who you really want to be.

It’s more generationally-proven than those strict entrepreneurial endeavors. 

It’s neither quick nor easy, but real estate is a stronger tree branch - and your fruit IS out there.

If you get 40 rental doors that even cash flow just $150 a month each = That’s $6,000 month in rental income for you. Or double that or 10X that if you need to.

Most people live inside circle of certainty with their job and life. And in that small circle, we’ll call it 100% safety & security.

Now, if you enlarge your circle so that it surrounds the first one, you might be living where you only have 80% certainty in your life’s outcome. 

If you make an even larger circle, around the first two, and really go for it, now your sense of certainly might be down to 60%.

But the one thing that you CAN be certain of then, it’s that you won’t have any regrets. 

The #1 regret of elderly people that are in a nursing home is that “Gosh, I never tried _____”.

They didn’t go out on that limb and they never tasted that sweet, succulent fruit.

I can help tell you whether you’re going out on a limb or not, right now.

Do you know what the most powerful assignment is - with regard to this - it’s to write your own obituary. Put pen to paper.

If you must write your own obituary, right now … you’re going to have great clarity on if your accomplishments are or your contributions … or your current trajectory … are putting you where you need to be.

I think writing your own obituary can strike some fear into you. It puts some fear into me. What would people say about what you did? What would you write down about yourself? 

In over 6000 years of recorded human history, no one has ever achieved anything outstanding by playing it safe. No one. The message is clear. You need to either accept the necessity for calculated risk, or settle for way, way less than you deserve.

Look, I’ve got this friend from childhood from when I lived back in Pennsylvania. Nice guy, nice family. 

He became a public school teacher - math teacher. And today, I see his posts on Facebook more often than I see him. 

One of the things that he commonly posts about are that he complains about how public school teachers aren’t treated well because he has disappointingly low pay.

And I see a lot of his teacher friends commenting on his posts, lamenting about the fact that they have low incomes, and have to take second jobs in the summer or whatever.

Well, after seeing a lot of these posts, I commented with an actual SOLUTION to the problem one time. My comment was something like - and here’s what I wrote:

“Many teachers that I know make $500K to $1M per year and they have great control of their time.” That’s what I wrote.

You should have seen their reaction. My friend and the other teachers on that thread were asking me how this could be - some of them even direct messaging me.

And I said, these well-paid teachers are online teachers. Yeah, they wake up each morning and see how many video course subscriptions they sold overnight.

You should have seen their reaction to that - they were quickly uninterested. 

That sounded scary. That didn’t meet conformity.

Now, I’ve got nothing against public school teachers. In fact, I appreciate what they do. 

But you can see how much fear there is … with going out on a limb.

See, when you try to provide a SOLUTION to people’s problems, they’d usually rather stay small, stay secure, and keep settling - staying inside that 100% certainty smaller life circle.

Do you think that a public school teacher would agree that their 12-year-old student should be a lifelong learner? Yeah, they probably would.

But is that public school teacher being a lifelong learner themselves if they won’t provide a better life for themself by learning some new online teaching and internet marketing skills?

Everyone wants change. But no one wants TO change.

This is not about condemning people for being employees. It’s about removing that wall between you and what you want. 

Because look, you might be a highly compensated employee that WANTS to teach public school math or English to 12-year-olds.

But you can’t afford to make the, say $55,000 a year that a teacher makes.

Building a second income with something proven like real estate softens that financial blow, and it lubricates that transition to doing what energizes you - teaching English to 12-year-olds.

This way, you’re a teacher, but you’re not dissatisfied that your salary is low - because teaching isn’t where you started - and now you’re probably more valuable to 12-year-old students because you are where you really want to be.

The riskiest thing you can possibly do is stay safe and take zero risks because then, you virtually guarantee that you’ll never get the life that you could have had.

Residual income gives you the ability to leverage time - and also provide some physical possessions. I don’t think there’s anything wrong with some materials stuff.

Even if physical stuff isn’t what life is about, it can help you facilitate your best life. Even a simple hiker would like a nice, comfortable backpack, tent, and a sleeping bag.

Some people say they want to “live frugally” but, they only say that because they’ve been conditioned and they don’t know HOW to live better.

When people say, “I want to live frugally”, often, what they really want to say is: “I’d like to live well”.

Like I’ve said elsewhere, the great conundrum of modern society is that …

… people spend all this time learning about how work works … and zero time learning about how money works. 

Yet money is the main reason that they even go to work. Hmm. Can you believe that.

Even if you’re one of the fortunate few that doesn’t want a substantial life change, adding a monthly stream of real estate income on top of your current situation sure won’t hurt you. 

Investing in real estate myself - ihelped ease my transition from a day job - to doing things like this show - creating value for people in the way that I want to do it.

I invest in - especially this WORKFORCE type of housing - myself.

Earlier today, I talked about some of the economic and demographic “whys” about these modest but decent rental single-family rental homes and small apartment buildings that we so often favor here.

As the American family size continues to shrink and birth rates fall, people want smaller SFHs. 

Think about how people live. Smaller family sizes are a trend away from McMansions. 

Millennials and Gen Zers are also environmentally conscious. That’s the future, where there’s been this spurning of extravagance.

That’s why these low-cost rental single-family homes are in such demand.

In fact, a recent report by economic research consultancy Capital Economics shared a stunning statistic: The number of vacant single-family homes … for sale … priced under $250,000 has halved since 2012.

Yes, there are only half as many available now as then.

In fact, according to the report, there are only 550,000 vacant homes on the market priced under $250,000. That’s half as many as there were just eight years ago. That’s astounding.

When there’s a downturn, people will move from the $2K-$3K rent homes into yours where they pay $1,000-$1,500.

In fact, I just bought two more of these single-family rental homes last month myself. One was $150K and the other about $130K. 

And I bought them from GREturnkey.

And you know, if you’re on the edge with your next move, and you don’t know if you should invest in a property or more education … and you’re trying to decide between the two ... 

As long as you’ve got a little education, I’d err toward you putting another “property” in your portfolio - or your first property.

Why is that?

That’s because when you buy a property, you get a substantial education about it from the inside. 

Buying and owning is the REAL world education that any classroom simulation can’t replicate.

Owning property gives you education …

… but more education alone doesn’t give you more property.

So here, we both teach a man - or woman - to fish AND give you a fish. We do both.

GREturnkey.com is where I’ve done my own property buying for years - including where I purchased these most recent two.

Go there, read a couple reports in some markets that interest you, and get some property under contract.

Over there, right now, I can tell you that:

In Alabama - Birmingham and Huntsville has been furnishing income property pretty actively.

In Ohio, Dayton has been bringing inventory to the market that exceeds a 1% rent-to-value ratio, meaning that you get more rent income per invested dollar there than nearly anywhere else.

Further south, Memphis and Little Rock have similar profitability to Dayton - and there are some really low price points in Memphis if you’re just looking to get started.

Then, Jacksonville has brand NEW construction turnkey property and actually have investor houses available now. Lower cash flow there but brand new.

Then, in Tampa, Florida, you can get a little cash flow and the Tampa-St. Pete metro was the 2nd-highest appreciation market in the nation at 5%. 

Yes, year-over-year, Tampa was 2nd … and you can get cash flow in the submarkets north of there.

Tampa has been furnishing, oh, maybe 4 or 5 turnkey properties onto the market each month. 

And, see, as noted, inventory is tight nearly everywhere. 

In Tampa, you’re looking at something like $1,200 of rent income for a $150,000 property.

At GREturnkey, Chicagoland has an interesting dynamic. Where you’re investing in Chicago’s suburbs of northwestern Indiana.

That way, you get the proximity and economic diversification of a world-class city like Chicago, yet being on the Indiana-side of the state line gives you property taxes that are less than half of that than if you were on the Illinois-side.

Everything I’m discussing here is designed for OUT-of-the-area investors … like me and probably like you too. 

It’s turnkey … meaning that the property is fully renovated, under a property manager’s management, and often even occupied with a tenant on the day that you buy…

… so that you’re enjoying that mailbox money … or ACH bank draft money as it might be.

You can find all those providers and more at GREturnkey.com

A big thanks to, well Mark Twain for some inspiration today. 

“Why not go out on a limb? That’s where the fruit is.” 

I’m back next week with Tom Wheelwright.

Until next week, get started at GREturnkey.com

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

Jan 13 2020

36mins

Play

274: How To Self-Manage Your Property with Kevin Cross

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Get 15 - 30% more rent income for your existing property.

Learn how to attract a better “Class B” tenant to a lesser “Class C” property.

We’re getting “hands-on” today.

Kevin Cross tells us about this and how to buy a bargain property (hint: find poorly-managed property).  

Small tweaks make a big difference in your property’s rent income: clean grounds, orderly common areas.

Add amenities inside units yourself like: Wi-fi, TVs, curtains, artwork.  

Your success is highly tied to tenant quality. 

Learn how to talk to a tenant engaged in illegal activity.

A house cleaner can put eyes on your property.

To learn about Virtual Property Pro owner assistance service, e-mail Kevin at: kevin@alaskarex.com This is an intermediate step if you’re not ready for pro mgmt.

Often eliminate: garage door openers, garbage disposals, 2-bay sinks.

Incorporate your hobby into your rentals; now your hobby is profitable.

Though I personally use professional management, self-management fits our guest’s lifestyle.

______

Resources mentioned:

Kevin Cross contact:

Email: kevin@alaskarex.com

Mortgage Loans:

RidgeLendingGroup.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

Jan 06 2020

50mins

Play

273: Real Estate vs. Stocks with Brent Sutherland

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Financial advisors don’t talk about real estate for three reasons:

  • They'd receive no compensation.
  • Lack of education.
  • Regulatory oversight.

Among educated investors:

  • Real estate has higher returns. 
  • There are more hidden fees with stocks than real estate.

I discuss dividend-paying stocks. 

Ntellivest’s Brent Sutherland tells us why stocks won’t make you wealthy.

This CFP-turned-real estate investor is a financial coach.

Most financial clients ask all the wrong questions. That’s why they get all the wrong answers. 

Few realize that you can increase your income now.  

Brent walks the talk. He owns 9 income properties, averaging $250 cash flow each and more.

We discuss common REI mistakes: financial protection, estate planning and LLCs. 

______

Resources mentioned:

Brent Sutherland:

Ntellivest.com

Visual Capitalist:

Composition Of Wealth

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

Dec 30 2019

46mins

Play

272: Refinancing, NIRP, GRE Listener Andrew Stanton

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Put more cash flow in your pocket by refinancing now.

Refinance conditions are ripe: equity up, interest rates down.

If you own property and interest rates rise, then hold.

But if you own property and rates fall, you can refinance.

This way, you’re playing both sides.

Sometimes you can negotiate a lower interest without refinancing.

Negative interest rates mean borrowers & spenders win, savers lose.

GRE listener Andrew Stanton (Email: apstanto@gmail.com) joins me to tell us how this show has changed his life.

This San Diego-based GRE follower works as a computer engineer and he’s building his investment real estate portfolio.

Losing his job helped Andrew realize how important it is to have multiple income streams.

The concepts of ROTI, your return from home equity is always zero, and “Don’t Quit Your Daydream” resonate with him.

______

Resources mentioned:

Andrew Stanton’s Email:

apstanto@gmail.com

GRE YouTube Channel:

GetRichEducation.com/YouTube

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

Dec 23 2019

35mins

Play

271: Permanently Reduce Your Taxes with Tom Wheelwright

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Your biggest expense in life is taxes - income tax, sales tax, property tax, capital gains tax, inheritance tax.

Taxation is not adjusted for inflation. I explain.

Wealthability’s Tom Wheelwright joins us about how to optimize Trump’s 2017 Tax Cuts And Jobs Act to your advantage.

A tax deduction is the amount by which your taxable income is reduced.

Income tax is on net income.

Sales tax is on gross income.

The $10,000 SALT deduction limit mainly hurts coastal residents.

Bonus depreciation substantially aids real estate investors - new and used property, and residential and commercial.

Learn how the 20% pass-through deduction benefits you.

Why you never own real estate in a “C” Corporation.

Learn about Section 179 tax advantages.

Opportunity Zones benefit those that invest in the renovation of distressed assets.  

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

______

Resources mentioned:

Tom’s website:

Wealthability.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

Dec 16 2019

35mins

Play

270: How To Own Agricultural Real Estate

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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

Dec 09 2019

43mins

Play

269: How Wealthy People Think

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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

Dec 02 2019

37mins

Play

268: How To Double Your Real Estate Return (BRRRR)

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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

Nov 25 2019

42mins

Play

267: A Billion Gajillion Fafillion Dollars with Richard Duncan

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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

Nov 18 2019

48mins

Play

266: Fourplex Financial Freedom with FIG’s Steve Olson

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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

Nov 11 2019

49mins

Play

265: Planning For A Recession & More Listener Questions

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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:

  1. Lower purchase price.

  1. Better cash flow. This is especially true in the early years. The early dollars are your most important as an investor.

  1. Established property. You’re pretty assured that the foundation won’t settle. You know that the topsoil grows grass.

  1. With EXISTING property, you’re in an established neighborhood. You already know who the neighbors are.

  1. 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.

  1. 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.

  1. Location. Because you’re often closer to parks and city centers … residents have shorter commute times. This aids in both attracting & retaining your tenant.

  1. Availability. In turnkey investment property, there are more existing structures available than new construction property.

  1. 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:

  1. You tend to get Better appreciation.

  1. Higher tenant quality. New features attract a larger tenant pool for you to choose from.

  1. Longer duration tenancies. It’s hard for a tenant to find a better situation, unless they leave to become a homeowner.

  1. You tend to have fewer maintenance costs with new construction property.

  1. Modern amenities. Layouts with open floor plans and a higher bathroom count.

  1. With new construction you often have lower property insurance costs.

  1. Better vendor warranties.

  1. 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!

Nov 04 2019

30mins

Play

264: Keith Weinhold & Grant Cardone “10X” Your Wealth

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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

Oct 28 2019

42mins

Play

263: Will 30-Year Mortgages Disappear? With Caeli Ridge

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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

Oct 21 2019

43mins

Play

262: Volatility & Fees Kill Returns, Alabama Among Top RE States In U.S.

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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

Oct 14 2019

41mins

Play

261: Five Years Ago: Episode One

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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

Oct 07 2019

42mins

Play

260: The Debt Decamillionaire

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$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

Sep 30 2019

42mins

Play

259: Turnkey vs. Syndication, CBD Investing with John Larson

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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

Sep 23 2019

44mins

Play

258: Single-Family Rental Property Today

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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

Sep 16 2019

36mins

Play

257: Spend Your Money … Lots Of It

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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

Sep 09 2019

47mins

Play

256: The Real Estate Numbers That Matter with Frank Gallinelli

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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

Sep 02 2019

51mins

Play

iTunes Ratings

449 Ratings
Average Ratings
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This podcast will make you wealthy!

By The Pizza King! - Dec 24 2019
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If you take action on the education that Keith puts out week after week, you will build wealth. Do yourself a favor and apply the knowledge to your life.

Fantastic podcast

By Ken K. from Cali - Feb 24 2019
Read more
Awesome and accurate advice. Must listen