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Rank #82 in Investing category

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Get Rich Education

Updated 9 days ago

Rank #82 in Investing category

Business
Careers
Investing
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.

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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

438 Ratings
Average Ratings
410
10
7
3
8

RE made easy 🙌

By J. Barshop - Sep 05 2019
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Keith and his wide variety of knowledgeable guests are truly rockstars! They’re making quality real estate investment knowledge accessible to everyone because they truly believe in the power it has to change lives. The great advice they provide, combined with the relatable way in which they deliver it had me hooked from the very first listen. Thanks for putting out such a stellar show Keith - keep up the great work!

Fantastic podcast

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

iTunes Ratings

438 Ratings
Average Ratings
410
10
7
3
8

RE made easy 🙌

By J. Barshop - Sep 05 2019
Read more
Keith and his wide variety of knowledgeable guests are truly rockstars! They’re making quality real estate investment knowledge accessible to everyone because they truly believe in the power it has to change lives. The great advice they provide, combined with the relatable way in which they deliver it had me hooked from the very first listen. Thanks for putting out such a stellar show Keith - keep up the great work!

Fantastic podcast

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

Listen to:

Cover image of Get Rich Education

Get Rich Education

Updated 9 days ago

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.

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

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

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

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

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

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

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

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

Listen to this week’s show and learn:

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

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

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

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

10:15  Demographic demand for SFHs.

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

16:00  Buy in 3-5 geographic markets.

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

23:04  Recession resistance.

23:42  Condominiums.

24:53  No common walls mean problems are confined.

25:57  Utilities, tenant quality, tenant psychology.

27:46  Autonomous cars and technology.

31:20  Rent-To-Value (RV) Ratios.

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

Resources Mentioned:

Keith’s first Rich Dad Advisors blog article

CorporateDirect.com

NoradaRealEstate.com

MidSouthHomeBuyers.com

LittleRockTurnkey.com

GetRichEducation.com

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.

Jul 22 2016

37mins

Play

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

Play

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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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

Play

123: Mistakes To Avoid In Real Estate Investing

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#123: What if the value of your income properties falls 40% vs. the value of stock falls 40%?

We explore the strategic, emotional and practical side of this.

Learn how you stop losing money by paying the opportunity cost of not being invested strategically. How to use desktop methods to research the right properties and markets.

Keith is invested in a real estate market where there’s a recession. Here’s how he deals with it.

Keith brings you today’s show from San Juan, Puerto Rico.

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

Listen to this week’s show and learn:

02:50  Most real estate investors buy property for convenience, not strategy.

05:34  Reading about 3-D printing before investing in Memphis real estate (really?).

07:17  Use these desktop methods to research property.

09:12  When your stocks fall 40%, a story of what happens tactically and emotionally.

17:20  There have been 25 stock bear markets since 1929.

18:27  Corporate Direct for asset protection.

21:58  The mortgage meltdown of 2009.

23:31  What happens if you income property portfolio fell in value by 40%?

26:56  In a stock meltdown, companies disappear. In a real estate meltdown, you still own land, brick, concrete, wood, copper wire, and glass.

28:23  Warren Buffett’s Rule No. 1: “Don’t lose money.”

29:07  Keith owns income property in Anchorage, Alaska, and there’s a recession there.

31:34  Submarkets and business sectors.

34:58  Invest in 3-5 different metros.

37:11  Home inspections.

Resources Mentioned:

WeGoLook.com

NoradaRealEstate.com

TheRealAssetInvestor.com/GRE

HighlandsMortgage.com

MidSouthHomeBuyers.com

GetRichEducation.com

Feb 17 2017

41mins

Play

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

101: Geography and Real Estate Investing with Peter Zeihan

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

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

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

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

Listen to this week’s show and learn:

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

06:05  Rivers.

08:38  Urban centers.

10:00  Geography shapes cultural isolation and integration.

13:16  Diffusion of ideas and technology.

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

23:35  Oil and petroleum.

30:28  Inflation vs. Deflation.

33:16  Japan.

38:23  Which countries will prosper.

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

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

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

Resources Mentioned:

Zeihan.com

The Accidental Superpower (book)

CorporateDirect.com

RidgeLendingGroup.com

NoradaRealEstate.com

GetRichEducation.com

Sep 16 2016

51mins

Play

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

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

Keith brings you the show from Ontario, Canada today.

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

Listen to this week’s show and learn:

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

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

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

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

12:08  Monthly property management statements.

15:50  The jet pilot.

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

22:47  Overcoming fear of leaving the job.

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

28:48  Altering your life structure.

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

36:40  Feel of the “corporate-ocracy.”

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

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

Resources Mentioned:

Book: “Pivot” by Jenny Blake

CorporateDirect.com

NoradaRealEstate.com

RidgeLendingGroup.com

GetRichEducation.com

Oct 21 2016

46mins

Play

119: Harry Dent | Market Predictions 2017 - 2019

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#119: Harry Dent is our guest today. He’s among the world’s best-known financial prognosticators. Does Harry still think the Dow Jones will fall to 6,000 points this year?

Dent answers questions most won’t: Where are real estate prices headed? Oil? Interest rates? Stock market? Inflation vs. Deflation? Gold? GDP growth?

Author, Economist, Demographer Harry Dent’s latest book, released this month, is called “The Sale Of A Lifetime: How The Bubble Burst Of 2017 Can Make You Rich”.

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

Listen to this week’s show and learn:

01:28  Harry Dent likes making predictions. People listen because the depth of his research is so extensive.

05:16  Harry believes the stock market will trend up until the summer, then a potential crash begins.

10:30  Growth that the U.S. experienced in prior decades won’t return due to demographics.

12:53  Stock market bubble catalysts / indicators: Demographics, Trump, bonds.

15:30  How China’s overbuilt infrastructure affects you & the world.

19:42  Can Trump control demographics?

24:00  Dent: Why interest rates are headed up, then going lower than ever.

28:15  Which real estate will falter? Which will do well?

30:57  Dent: Mortgage interest rates will peak this year at 4% to 4.5%, bottoming around 2020.

33:07  Dent: In a downturn, positive cash-flowing residential real estate looks great.

33:53  Dent: Oil prices won’t go over $62. Could fall to $20-$30 again.

35:45  Dent: Deflation more likely than inflation. 5-10% inflation is impossible. Gold comments.

39:05  What can you do to position yourself  for prosperity?

44:30  Your demography is your destiny.

Resources Mentioned:

HarryDent.com

NoradaRealEstate.com

TheRealAssetInvestor.com/GRE

MidSouthHomeBuyers.com

GetRichEducation.com

Jan 20 2017

47mins

Play

77: Passive Real Estate Investing Blueprint with Marco Santarelli

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#77: “Passive” means you don’t have to work actively in real estate in order to profit. But “passive” still means “involved.”

Our guest is Norada Real Estate Investments’ Marco Santarelli. Norada offers you turnkey real estate investments in multiple US markets.

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:

02:57  Listen to people whom were investing in real estate during the 2008 & 2009 Financial Crisis like Keith and Marco. They understand harder times.

03:28  Marco Santarelli interview begins.

08:58  Turnkey real estate defined. What to look for in a profitable passive investment.

13:40  Shortcomings of turnkey and passive real estate investing. You still need to do your due diligence.

14:35  Why Keith thinks turnkey real estate investing is in a “sweet spot” of ROI and control.

17:37  What’s your time worth?

19:41  10 Rules For Successful Real Estate Investing.

36:33  Should the turnkey seller and the property manager be in the same company?

38:31  Always get a home inspection.

41:30  Linear, cyclical and hybrid markets.

42:29  The best U.S. geographic markets today for buy-and-hold real estate investors.

43:55  Rent-To-Value ratios of 0.9% to 1.2% today.

45:00  Is turnkey RE investing too good to be true?

Resources:

PassiveRealEstateInvesting.com - Free investor education from Marco Santarelli.

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

RidgeLendingGroup.com or 1-855-74-RIDGE. Call them today. Why? They specialize in income property loans & can finance up to 35 rental properties for you.

Robert G. Allen's Amazon books page

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 would be so grateful if you wrote a 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  We’ll send you a GRE logo decal.

Apr 01 2016

47mins

Play

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

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

74: Why You Have To Jump

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#74: Stop saving money for the long-term; it is not serving you. 401(k)s are awful.

To ultimately fulfill yourself, here’s why you need to jump.

Steve Harvey “Jump” clip played.

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:

00:57  Stop saving money for the long-term.

01:21  When he was 12, Keith opened his first bank saving account.

04:18  There are so many things wrong with the 401(k).

06:25  Good news about your ROTI.

07:55  The most important investor question to ask yourself.

13:30  Steve Harvey “Jump” clip.

20:45  Passive real estate income as your parachute.

21:14  Keith’s jump. He had fear about starting the GRE podcast.

Resources:

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

RidgeLendingGroup.com or 1-855-74-RIDGE. Call them today. Why? They specialize in income property loans & can finance up to 35 rental properties for you.

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 would be so grateful if you wrote a 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  We’ll send you a GRE logo decal.

Mar 11 2016

26mins

Play

71: Daniel Amerman | What Could Cause A Housing Crash?

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#71: Chartered financial analyst, author, and speaker with an MBA in finance, Daniel Amerman discusses causes of a financial crisis.

As a former real estate investing analyst, he relates today’s macroeconomy to real estate investors.

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:

01:55  Why Keith is a student along with you today.

03:28  Enhancing your podcast listening experience - compressed file size, time stamps.

05:33  Daniel Amerman interview begins.

07:08  The economic challenges in today’s environment.

08:04  Financial Repression is government dominance over markets.

11:31  Ways our government gets rid of its massive debt: default, austerity, high inflation, or low interest rates.

14:47  Inflation is still punishing savers.

17:27  Why can’t the U.S. just keep running up even more debt?

21:23  Daniel Amerman’s thoughts on how Keith secures loans.

23:48  What’s coming - inflation or deflation?

30:18  Would deflation lead to a housing crash?

33:07  Will the Fed “save the day” if we tip into deflation?

37:25  Triggers of a housing crash - what to look for.

39:50  How to profit yourself by aligning your interests with government policy.

Resources:

DanielAmerman.com - Daniel Amerman’s website. Free resources.

RidgeLendingGroup.com or 1-855-74-RIDGE. Call them today. Why? They specialize in income property loans & can finance up to 35 rental properties for you.

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

Feb 19 2016

44mins

Play

25: Ken McElroy | Rich Dad Advisor for Real Estate | Real Estate Strategies with Ken McElroy

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#25: There aren’t many famous real estate investors. There’s Barbara Corcoran, Donald Trump, Ted Turner, and today’s guest…Ken McElroy.

Listen to this week’s show and learn:

02:00  Keith cannot think of a greater contributor to real estate investing education this generation than Ken McElroy.

04:04  Last month, Robert Kiyosaki, Ken, and Keith were in the same room when Robert dubbed Ken McElroy “The Greatest Real Estate Investor In The World Today.”

05:08  Ken began in real estate as a Seattle property manager.

08:12  RE agents often don’t own investment real estate and they try to “sell buyers on the future.” Instead, use a Property Manager to find what rents really will be.  

11:30  Buy investment real estate for cash flow rather than capital gains.

13:23  “Real estate is really dumb and it moves slow.” Buy where the jobs are going to be.

15:40  How Ken looks for opportunity in a new purchase.

16:50  When Ken would want to buy a vacant four-plex rather than an occupied one.

20:18  Actionable ways to add value to multifamily properties.

25:30  How large of a property does it take for on-site property management to make sense?

27:47  How Ken beats out other offers for a property that he wants to buy.

31:28  The time and freedom that real estate investing affords Ken’s family.

32:46  The advice that today’s Ken McElroy would provide to a 20-year-old Ken McElroy.

Resources mentioned:

www.KenFlix.com - Online video tutorials from Ken!

www.KenMcElroy.com

www.MCCompanies.com

Ken McElroy’s top-selling book The ABCs of Real Estate Investing

Robert Kiyosaki’s new book Second Chance

Get any free Audible audiobook & 30-day free trial

Join the Facebook Page

Now on Twitter!

New: you can listen to us on SoundCloud!

Apr 03 2015

38mins

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

255: State Of The Real Estate Market with Daren Blomquist

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Keith Weinhold says the word of this real estate era may be: “supply”. Why?

The U.S. just hit its lowest rental vacancy rate in 35 years: 6.8%. 

Also, the U.S. just hit its lowest homeowner vacancy rate in 40 years: 1.3%.

Mortgage interest rates just fell to near three-year lows.

U.S. existing median SFHs now a record $279,600. 

Year-over-year appreciation is 4.3%.

Regulation and environmentalism increase real estate prices.

Join our Tampa Real Estate Field Trip at RealEstateFieldTrip.com

Next, Daren Blomquist of Auction.com joins Keith to discuss current U.S. trends in:

  • Foreclosure activity.
  • Home price appreciation.
  • Migration trends.

Foreclosure activity is down due to high employment, more exotic loans now “rooted out of the system”.

91-92% of metros Daren studied are appreciating in value.

Net migration winners include: Florida, Texas, Tennessee, The Carolinas, Georgia, Washington, Arizona, Nevada, Colorado. 

Net migration losers include: New York, California, Illinois, Louisiana.

___

Want more wealth?

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

2) Your actionable turnkey real estate investing opportunity: GREturnkey.com

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

___

Resources mentioned:

Daren Blomquist:

Auction.com

Heat Map:

Home Appreciation

Heat Map:

Net Population Migration

GRE’s Tampa Field Trip:

RealEstateFieldTrip.com

Mortgage Loans:

RidgeLendingGroup.com

Turnkey Real Estate:

NoradaRealEstate.com

eQRP: Text “QRP” to 72000 or:

TotalControlFinancial.com

JWB New Construction Turnkey:

NewConstructionTurnkey.com

Best Financial Education:

GetRichEducation.com

Find Properties:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Aug 26 2019

35mins

Play

254: Grow Rich In Your Sleep

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If I pay you $114 an hour to mow my lawn, could you get wealthy that way?

No. You’d have to work all 8,760 hours in a year just to make your first million.

Invest.

The definition of investing is: “To expend money with the expectation of achieving a profit.”

Then, are stocks, bonds, gold, your home, vacations, or income properties … investments? I discuss.

Damion Lupo, expert eQRP Administrator, joins us. Learn more by texting “QRP” in ALL CAPS to 72000.

You can have five simultaneous profit centers with income property:

  • Leveraged Appreciation.
  • Cash Flow.
  • Return On Amortization.
  • Tax Benefit.
  • Inflation-Profiting.

To get ahead, you must give your money multiple jobs. That’s five in this case.

If you’re new to this: risk and frustration still exist in real estate. Your best-laid plans will be derailed sometimes.

It’s not “get rich quick”. But most people never acquire wealth at all.

Why switch your retirement plan to an eQRP?

  • $55,000 annual contribution limit for single, $110,000 for married couples.
  • Invest in real estate, hard assets, nearly anything.
  • Creditor protection.
  • eQRP setup has less red tape setup than SDIRAs.
  • $50,000 line of credit.
  • Avoid UBIT tax. 

Learn more about the eQRP from Total Control Financial by texting “QRP” in ALL CAPS to 72000.

___

Want more wealth?

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

2) Your actionable turnkey real estate investing opportunity: GREturnkey.com

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

___

Resources mentioned:

eQRP: Text “QRP” to 72000 or:

TotalControlFinancial.com

Mortgage Loans:

RidgeLendingGroup.com

Turnkey Real Estate:

NoradaRealEstate.com

JWB New Construction Turnkey:

NewConstructionTurnkey.com

Best Financial Education:

GetRichEducation.com

Find Properties:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Aug 19 2019

34mins

Play

253: Jim Rickards | Aftermath

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Jim Rickards is our guest today.

Debt is growing faster than the economy. 

In an eventual financial crisis, we discuss how a real estate investor will fare. 

A prolific author, Aftermath is Jim Rickards’ new book.

Debt, inflation, and interest rates are macroeconomic forces that affect you daily. 

The U.S. has $23 trillion in debt. Why can’t we just keep kicking the “debt can” down the road?

Alexander Hamilton effectively created the debt 230 years ago.

When the debt-to-GDP ratio exceeds 90%, problems occur. It’s 103% in the U.S. today.

We discuss debt solutions, and why negative interest rates and Trump tax cuts won’t work.

Rickards says inflation has nothing to do with money supply; it’s about psychology.

Learn how a new international monetary system looks - outside the U.S. dollar.

In a new system, hard assets retain value. Stocks and bonds lose substantial value.

___

Want more wealth?

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

2) Your actionable turnkey real estate investing opportunity: GREturnkey.com

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

___

Resources mentioned:

Book - Amazon:

Aftermath by Jim Rickards

National Debt Clock

Mortgage Loans:

RidgeLendingGroup.com

Turnkey Real Estate:

NoradaRealEstate.com

QRP:

TotalControlFinancial.com

JWB New Construction Turnkey:

NewConstructionTurnkey.com

Best Financial Education:

GetRichEducation.com

Find Properties:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Aug 12 2019

43mins

Play

252: The Power Of Now

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Imagine that you’re paid $8.5 million - your entire life’s earnings - all on the last day of your life.

But you received nothing until then.

That income really wouldn’t serve you well anymore.

It’s an extreme example about “The Power Of Now”. 

Delayed gratification should not be a long-term condition. You get one life.

I also discuss housing affordability: which is your income, housing prices, and mortgage interest rates.

Historically, affordable homes have a price-to-income ratio of 2.6 or less.

In just three minutes time, I tell you how the Federal Reserve works. Their ¼% interest rate cut announced last week is the first cut since 2008. 

Join me in-person on our Tampa Real Estate Field Trip. Register at www.RealEstateFieldTrip.com

The Phillips Curve signifies that employment and inflation are highly correlated.

___

Want more wealth?

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

2) Your actionable turnkey real estate investing opportunity: GREturnkey.com

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

___

Resources mentioned:

GRE’s Tampa Real Estate Field Trip:

RealEstateFieldTrip.com

Article & Video by Keith Weinhold:

How “The Fed Works” In 3 Minutes

Book:

Eckhart Tolle “The Power Of Now”

Affordability article:

Housing Wire

Mortgage Loans:

RidgeLendingGroup.com

Turnkey Real Estate:

NoradaRealEstate.com

QRP:

TotalControlFinancial.com

JWB New Construction Turnkey:

NewConstructionTurnkey.com

Best Financial Education:

GetRichEducation.com

Find Properties:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Aug 05 2019

37mins

Play

251: Floating Ocean Cities - Seasteading with Joe Quirk

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Floating ocean nations can provide solutions to rising sea levels, overpopulation, and poor governance. 

It’s known as “seasteading”.  

Joe Quirk of The Seasteading Institute describes their plans and structure.

The institute was co-founded by well-known venture capitalist Peter Theil.

This differs from living on a boat or oil platform, or cruise ship life.

200 miles offshore is the exclusive economic zone.

Hurricanes, tsunamis.

A new environment for enterprise and innovation.

Seeking freedom and liberty.

Aquaculture - seaweed, algae farming.

Regulation by the free market rather than government.

Could security evolve into an army? 

Today’s seasteading population.

Cryptocurrency.

How far we are from a seastead nation?

___

Want more wealth?

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

2) Your actionable turnkey real estate investing opportunity: GREturnkey.com

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

___

Resources mentioned:

The Seasteading Institute:

Seasteading.org

Blue 21 Floating Homes:

www.blue21.nl/

GRE’s Tampa Real Estate Field Trip:

RealEstateFieldTrip.com

Mortgage Loans:

RidgeLendingGroup.com

Turnkey Real Estate:

NoradaRealEstate.com

QRP:

TotalControlFinancial.com

JWB New Construction Turnkey:

NewConstructionTurnkey.com

Best Financial Education:

GetRichEducation.com

Find Properties:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Jul 29 2019

45mins

Play