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Rank #64 in Investing category

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Get Rich Education

Updated 2 days ago

Rank #64 in Investing category

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

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

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432 Ratings
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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
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Awesome and accurate advice. Must listen

iTunes Ratings

432 Ratings
Average Ratings
404
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
Cover image of Get Rich Education

Get Rich Education

Updated 2 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.

Rank #1: Live Before You Die

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If you work for a salary or a wage, then money is an important factor in your life.

So there you are, making between $60,000 and $150,000 per year.

You’ve got a good home, steady employment, you drive a decent car. Sometimes you even feel “comfortable.”

This one precious life of yours is made up of time. Are you trading away that time for dollars at a job that you aren’t passionate about?

Every morning, you might even separate yourself from those you love… in order to do this.

With real estate investing, you don’t want properties so much as you want its passive income - income that you don’t have to work for.

Now your eternal time vs. money dilemma is solved.

If you don’t know why you urgently need financial freedom, do it so that you can “Be Yourself”.

See… you wake up to a blaring alarm to get to your job - and that’s how your day starts. Then you’re programmed to tote company lines all week.

Near the end of the work day, you’re playing another tireless charade - screwing around on the internet while you’re watching the clock like it’s a countdown timer so you can get out of there. that’s unethical.

You aren’t being yourself… because you wouldn’t naturally do those things.

Most employees aren’t driven by purpose, they’re driven by fear.

Your growth can only begin when you peel back each layer of your vulnerability onion and get honest with yourself.

The roots of change are nourished with genuineness.

You’d rather quit your job and be a nature photographer or a Red Cross volunteer or a sports writer or travel.

Even if your job is OK, wouldn’t life be better if you were job-optional?

You haven’t created the time to feel peace, joy, happiness, giving, love and freedom in your life.

You spend all this time learning how works works, zero time learning about how money works...

yet money is the only reason that you even go to work.

Look… you won’t obtain freedom by getting your money to work for you.

Every dollar that you put in a stock or 401(k) plan can’t leverage other people’s money...

...for freedom, you must ethically employ other people’s money. That’s the mindset shift.

Real estate gives you limitless access to other people’s money - the bank’s, the government’s, and your tenants.

When you have enough passive income to meet all of your expenses, you can quit your job and be free!

Real estate is the generationally-proven way to build wealth and you don’t even need any degree or certificate.

That’s why I talk tirelessly on my podcast, and in videos, and articles and newsletters and wrote a book, and keep visiting the best geographic markets to find the right opportunities and properties and to meet the right people.

In this one life of yours, you can either be a conformer or you can build wealth.

Once you have time freedom, whether or not you want to go on to be rich from there - well, that part’s up to you.

This is an unselfish act - because when you do what you love, you’ll produce better results for both your family and society. You can’t help others if you’re poor.

Don't live below your means. Expand your means - with anything that you do in life.

The sad thing is, you have a choice in this - yet you’re selling your time and your soul for money. And that’s what breaks my heart.

Learn how to invest in real estate - the smart, patient, stable way.

Most people get used to “settling” in life. When you were 12 years old and thought about your adult life, I’ll tell you one thing that you never thought:

“Someday, I’m going to live a small life.”

Well, now that’s precisely what you’ve done.

Get real with me. How much did your employer pay you to quit your dreams?

Do you even remember what your dream was from when you were 12? I bet you’ve forgotten.

When your dreams die, you die.

Most people die at age 25. It’s just that they’re not buried until age 85.

Will you live before you die?

-by Keith Weinhold of Get Rich Education

_____

See the “Live Before You Die” VIDEO when it is released by subscribing to our e-mail newsletter at: GetRichEducation.com

Also, follow me on Instagram:

@getricheducation

@keithweinhold

Facebook:

@getricheducation

YouTube:

Get Rich Education Channel

Twitter:

@GetRichEd

LinkedIn:

Keith Weinhold

Jan 09 2019

5mins

Play

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

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

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

Subscribe on iTunes so you never miss an episode.

Listen to this week's show and learn:

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

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

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

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

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

14:30  Running the numbers.

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

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

23:35  Property selection considerations.

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

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

Resources mentioned:

MyFico.com

TheLandGeek.com/GRE and MidSouthHomeBuyers.com

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

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

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

Aug 14 2015

33mins

Play

Rank #3: 249: Beginner's Real Estate Investing Guide

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Two big mistakes are: 1) Renting out your former primary residence. 2) Only being invested in one market. 

This Beginner’s Real Estate Investing Audio Guide also helps you step-by-step with buying an income property:

  • Credit Scoring
  • Mortgage Pre-Approval
  • Writing An Offer
  • Inspection
  • Vetting A Property Manager
  • Appraisal
  • Insurance
  • Closing
  • LLCs

The entire audio from this episode is transcribed into words and can be found at the end.

People set up LLCs for asset protection, anonymity, or tax purposes. But there is a lot of administrative work. Is it even worth setting up?

Your FICO credit score has five ingredients. Down payment, debt-to-income ratio covered.

Mortgage pre-approval is better than pre-qualification.

Select income property in: job-growth economies, high rent in proportion to low purchase price.

Cash flow = Rent Income minus “VIMTUM”.

Why would someone sell you a cash-flowing property?

“Turnkey” defined. Should you make a lowball offer to a turnkey provider?

Also discussed: Negotiation Strategy, Earnest Money, Purchase Contracts, Management Fees, Management Agreements, Mobile Notary, Title Company, Rent-To-Value Ratio, Collecting Cash Flow.

___

Want more wealth?

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

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

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

___

Resources mentioned:

Mortgage Loans:

RidgeLendingGroup.com

Find Properties:

GREturnkey.com

Memphis & Little Rock Property:

MidSouthHomeBuyers.com

Turnkey Real Estate:

NoradaRealEstate.com

QRP:

TotalControlFinancial.com

JWB New Construction Turnkey:

NewConstructionTurnkey.com

Our Tampa Real Estate Field Trip:

RealEstateFieldTrip.com

Best Financial Education:

GetRichEducation.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

Complete Audio Transcript:

Welcome to Get Rich Education. I’m your host Keith Weinhold and I’m here to help Beginning Real Estate Investors Today. 

The biggest beginner mistakes to avoid, when you make an offer - can you lowball a turnkey provider, and all those buyer steps like LLCs, mortgage pre-approval, inspection, appraisal, and closing. Today, on Get Rich Education.

___

Welcome to GRE. This is Get Rich Education Episode 249 - and this is your Beginner’s Real Estate Investing Audio Guide. Hi, I’m your host Keith Weinhold.

We’re talking about how to get into long-term buy & hold RE investing - and that’s because it’s the most generationally-proven way to build wealth.

First, let’s talk about a couple of the biggest mistakes that real estate investors make - it’s being invested in only one geographic market. Often, that’s the market that they just happen to live in. 

There is more risk with being in only one market than most realize, because you’re now tied to the fortunes or misfortunes of just one area’s economy.

Another substantial, common real estate investor mistake is that they continue to hold onto one - I’ll call it - special - property in their portfolio that they usually need to get rid of - but they have either sentimental ties to it - or they just hold onto it for convenience, and do you know what that property is?

I’m actually talking about a specific property here.

It’s the home that THEY YOU USED TO LIVE IN yourself. Well, what’s wrong with renting out the home that you used to live in yourself? 

You might still have the preferable owner-occupied financing locked in on that one - and afterall, that’s a better rate than you could get on a non-owner-occupied rental.

The problem is that the property probably doesn’t perform BEST as a rental.

But you might be clearing, say $500 per month by using your former primary residence as a rental today. 

Look, for you, it’s often about the cash flow - and yes, it is about the cash flow. 

But there’s something even more important than cash flow - that’s because nearly any property will cash flow if the loan were paid off.

That’s why it’s really more specifically about the rent-to-value ratio of a property.

If you’re renting out the home that you used to live in, and it wasn’t strategically bought as a rental, if your rent-to-value ratio (or RV ratio) is 0.6%, meaning that for every $100K in value it has, you’re only getting $600 of monthly rent income, then you’re losing cash flow dollars every year - and every month.

Look, let’s give a real life example of the .6% RV ratio. Say that you can get $1,800 rent out of that $300K property that you used to live in. 

But instead, three $100K homes bought strategically as rentals can have a combined rent income of $3,000. Yes, you can still find that full 1% rent-to-value ratio.

So it’s either one $300K property at $1,800 of rent income.

Or three $100K properties at $3,000 of rent income. 

So you’re losing $1,200 dollars of cash flow every month - you’re only getting $1,800 rather than $3,000 - by not buying and owning strategically in markets in the Midwest and South where the properties make sense as a RENTAL on the day that you buy it.

Your primary residence only made sense as a primary residence on the day that you bought it. 

Now you can see that the only reason that you own it, is because you defaulted and “fell” into it. Don’t fall into things. Be intentional. 

You are a better investor when you’re intentional rather than emotional.

It’s even better for you now. Beyond your $1,200 of additional cash flow with some repositioning, now, with three properties instead of one - now you’ve also taken care of the first real estate investor mistake that I mentioned.

WITH three rentals rather than one, now you can be diversified across multiple markets.

Two birds are killed with one stone. Now with some re-positioning, you’ve increased your cash flow by $1,200, AND you’re in multiple markets. One property isn’t divisible.

We’re talking about real estate investing for beginners today, so let me clearly guide you through step-by-step on just how you go about buying your first property - writing an offer, inspection and vetting your Property Manager which is known as due diligence, appraisal, and onto closing and receiving cash flow from the tenant.

As you’ll see, much of today’s show pertains to any investment property at all.

But we’re talking mostly about how to buy single-family turnkey homes, especially homes outside your home market - as most of the best deals are not found where you live.

Like they say, the best investors live where they want to live, invest where the numbers make sense.

Get Rich Education is heard in 188 world nations. 

Today’s content is primarily geared toward United States real estate investors - but those that live outside the United States will benefit here too.

Here’s a question that you might have - “How do I go about setting up an LLC - a Limited Liability Company - to hold my investment property in?” 

I’ll tell you - I don’t think “How do I set up an LLC?” is the best question to ask.

The best question to ask is, “Should I set up an LLC?” 

The three main reasons people set up an LLC are for either anonymity, tax purposes, or asset protection.

Now, if you know that you WANT to set up an LLC - I’ve done three episodes on that topic with Rich Dad Legal Advisor Garrett Sutton.

You can go to GetRichEducation.com, type “Garrett Sutton” in the search bar, and those three episode numbers will appear so that you can listen.

But the reason that the question is, “Should I even SET up an LLC?” is because:

  • Setup of LLCs complicates your life. Maintaining a registered agent, Articles Of Incorporation, having separate accounts, tracking expenses with separate credit cards, paying annual fees for everything - depending on how many LLCs you have and how you structure your life - it can wear you out.

  • The second reason you should ask yourself, “Should I even set up an LLC?” is because you might not have many assets for a litigant to go after. Retirement accounts have certain protections already. Equity in a property could be low-hanging fruit for a plaintiff attorney if someone gets a judgement against you. But since the Return From Equity is always zero, what would you have much equity in a property anyway?

  • The third reason you should ask yourself, “Why should I even set up an LLC?” is that frivolous or slip-and-fall type of lawsuits are rare. Not only have I never been a party to one, I’ve never even heard of any investor friend or associate having one - and I talk to a lot of people. You probably haven’t heard of one either.

Now, note that I’m not saying you can’t get an LLC or shouldn’t get one. I’m saying, prioritize those questions to yourself.

First, it’s “Should I get one?”. If that’s a definitive “yes”, only THEN ask:

“How do I set one up?”

Why do you think you have to? Did some attorney use fear tactics to get you to?

If the result of the LLC’s administrative overburden provides a greater reward in the form of asset protection, anonymity, or tax benefit - which is typically a flow-through taxation type anyway, you might then … get an LLC.

So, as a beginning real estate investor, understand that real estate is a credit-based asset - meaning it’s usually bought with a loan. 

So let’s talk about getting your finances in order before you contact a lender or select an income property. 

That begins with you having enough cash liquidated for a 20% down payment on the property - add about 4% for closing costs, depending on the state that you’re buying your property in - and on the lowest-priced property that’s still in a decent area of a low-cost city - which might be a $60,000 property …

24% of that then is about $14,000 that you’ll need. You should have some extra on top of that as reserves. 

Now, let’s look at another part of your finances - your DTI - your debt-to-income ratio. It cannot exceed 43% to 45% - maybe up to 50% in some circumstances. 

So if your monthly minimum debt payments - everywhere in your life - housing payment, minimum credit card payments, minimum car payment - if that sum is $5,000 and your gross monthly income is $10,000 - that’s a 50% DTI. You can’t exceed that.

Of course, before a bank is willing to loan you money, they want to have a reasonable assurance that you aren’t weighed down with debt elsewhere because their fear factor goes up that they won’t get paid back.

Next, let’s talk about your credit score. We dedicated an entire episode to this back in Episode 54. If you can remember back that far, Philip Tirone was here with us and you learned more about credit scores that you probably ever thought you would …

… and he even went on to call the credit scoring system a total scam. He was quite opinionated - it was interesting and eye-opening, but ... 

Playing within the scam here - as it might be. 

There are many different credit scoring models, but the FICO Score - F-I-C-O - is a respected one that you’re probably going to see your mortgage lender use.

It stands for Fair Isaac Company.

Their credit scoring range is 300 - the worst, up to 850. 850 is essentially a perfect score.

Importantly, 740 is the highest score that helps you here. 

If you have a 782 or an 836, it doesn’t help you qualify for the loan or get you a lower mortgage interest rate or anything else. 

740 is where you’re optimized. 

Now, just a quick overview of FICO credit scoring ...

There are five primary ingredients that make up your credit score.

In order of importance, they are your payment history, amounts owed, length of your credit history, new credit, and finally credit mix. 

That first one, Payment History, is the most heavily weighted one. It’s 35% of your score.

As you might expect, the repayment of past debt is a major factor in the calculation of credit scores. It helps determine your future long-term payment behavior. Both revolving credit (i.e. credit cards) and installment loans (i.e. mortgage) are included in payment history calculations. 

Although installment loans like mortgages take a bit more precedence over revolving credit - like credit cards. 

This is why one of the best ways to improve or maintain a good score is to make consistent, on-time payments.

The next way, your Amounts Owed – 30%

This category is basically credit utilization or the percentage of available credit being used - or borrowed against. Credit score formulas “see” borrowers who constantly reach or exceed their credit limit as a potential risk. That is why it’s a good idea to keep low credit card balances and not overextend your credit utilization ratio.

So if you’ve got just a $1,000 balance on a credit card with a $10,000 credit limit, that’s seen as a good ratio. You’re staying well within your limits then. 

The third FICO credit score ingredient is the Length of your Credit History – 15%

This factor is based on the length of time all credit accounts have been open. It also includes the timeframe since an account’s most recent transaction. 

Newer credit users could have a more difficult time achieving a high score than those who have a long credit history. That’s because if you have a longer credit history, FICO has more data on which to base their payment history.

The fourth of five FICO ingredients is your “Credit Mix” – Now we’re down to an ingredient only comprising 10% of your score.

Credit mix just means that it helps your score if you have a combination of credit cards, retail accounts, installment loans, finance company accounts and mortgage loans. 

Finally, “New Credit” makes up the last 10% of your FICO score.

Don’t open too many new credit accounts in a short period of time. That signifies a greater risk to lenders – and that’s especially true for you if you’re a borrower with a short credit history. 

And you sure don’t want to open up any new lines of credit, down the road when you’re in the qualification process for buying a new property unless you check with your Mortgage Loan officer first.

Knowing what factors make up your FICO® Credit Score can help you qualify for more loans and get better mortgage interest rates. That’s the bottom line.

This helps you get pre-qualifed or pre-approved with your Mortgage Lender.

To get prequalified, you just need to provide some financial information to your mortgage lender, such as your income and the amount of savings and investments you have. Your lender will review this information and tell you how much they can lend you. 

After pre-qualification, you can seek the higher-level status and that is getting pre-APPROVAL for credit. Pre-approval is better than pre-qualification.

If you think about it, it makes sense. Qualifying for anything in life is not as good as getting approved for something - I suppose. 

Pre-approval involves providing your more detailed financial documents - like W-2 statements, paycheck stubs, bank account statements, and your previous two years tax returns. This way, your lender can VERIFY your financial status and credit.

Now that you’re pre-approved with a lender, you can focus on the market and property that you’re interested in. 

RidgeLendingGroup.com is the mortgage lender that we recommend most often because they SPECIALIZE in income property. They don’t have any seasoning requirements.

Seasoning means that the person selling YOU the property needs to have held onto it for a certain length of time - or the lender won’t finance the property for you.

While you’re in the pre-approval process, you can be learning about a cash-flowing investment market. 

You want to pick a geographic metro market that typically has low-cost properties, and high rent incomes in proportion to those low costs. 

In fact, the market is more important than the property. Because your income comes from your tenant, and your tenant’s income comes from a job.

So you typically don’t want to own much property in a town with 14,000 people that’s an outlying area - not part of a greater metro - where 1/3rd of the employment is tied to one tungsten factory or even one semiconductor manufacturer.

Because now, too much of your income stream is tied to just one industry.

You also don’t want to buy slummy property. Those tenants often don’t pay the rent. You also don’t want to buy the median-priced home or higher, because the numbers don’t work out.

So you want that working class housing that’s just below the median price point for the area.

If you’re not already confident about that and familiar with the right provider ... 

We have information on the right market, with the right provider, with properties - and they’re typically in the MidWest and South - at GREturnkey.com

So read a market report there. That’s good, pointed information.

Most investors are interested in a property for the production of cash flow. That’s the margin by which your rent income exceeds all expenses.

Rent income minus expenses should be a positive number.

So that’s your monthly rent minus VIMTUM. V-I-M-T-U-M. 

Vacancy, Insurance, Maintenance, Taxes, Utilities, and Management.

I like easy ways to remember things and VIMTUM is an easy way to remember.

So, you’re listening to the Beginner’s Real Estate Investing Audio Guide here as a regular episode of Get Rich Education.

If you’re not a beginner & you’re still listening, it’s either a good review and you might even be learning some new things along the way yourself. 

Including, should you ever lowball a turnkey provider and a negotiation approach that I have for that - in a few minutes. 

But first, one reasonable beginner question is ...  

“Now why would someone would want to sell me a cash-flowing property in the first place? Why would someone sell me a good thing that pays them every month that they could continue to hold onto for cash flow?

If a property pays someone every month while they hold onto it - why in the heck would they sell it to me?

OK, some seller out there has a golden goose that lays a golden egg every month, so why in the world would they give me an opportunity to buy the goose?

Well, there are just so many reasons for selling cash-flowing property - yes, a ton of reasons for selling even a young, healthy goose that lays golden eggs every month & is expected to so for years.

Well, a turnkey provider runs out of money too. They can’t buy all the properties themselves. 

They’d prefer a lump sum payout when they sell this property, because their business model is to go pay all cash for another distressed property that they can fix up. 

And if you think that they snatched up the good ones themselves a while ago - yeah, they probably did do some of that.

In fact - I WANT them to have snatched up some good properties from their own market earlier. It shows me that they believe in what they sell.

Now, other reasons that the - I guess general public seller might want to sell you a property is ...

One reason is moving. Say that a family in City A owns a few mom-and-pop rental homes that they self-manage and they’re moving to City B in another state, they’ll often sell their income properties.

Some people want to self-manage their property (often because they never explored their best-and-highest use, but anyway) & if they have to move to City B, they’ll sell the property rather than try to find a Property Manager in City A. 

Another reason people sell cash-flowing property is that - even if someone is not moving, that person might be tired of the self-management hassle - but yet they don’t try professional management - because that person has the DIYer mentality - that soooo common do-it-yourself mindset.

OK, most people just don’t take a strategic approach to real estate investing.

Other reasons for people selling cash-flowing property are death, marriage, divorce, and all kinds of either joyous or tragic life milestones.

If a husband-and-wife own rental properties but running & managing them was kind of the husband’s thing & the husband dies … the wife doesn’t know how to run the properties & she’s likely to sell rather than hire a Property Manager.

People may sell their cash-flowing property in case of all kinds of emergencies - medical and otherwise - because they may need a quick lump of cash - instead of the steady stream of cash flow over time that just won’t work for them in their new situation.

OK, most of those situations involve some sort of external life change for property sellers - a lot of them tragic.

Well - here’s a personal one for you... 

A few years ago, I sold two cash-flowing apartment buildings at the same time - well, those sales actually closed on consecutive days - so nearly the same time.

Both of those cash-flowing apartment buildings that I sold were 100% occupied with tenants, I had competent management in place, and there were no deferred maintenance issues with the buildings.

You want to know my reason for selling two nice golden apartment gooses that were steadily laying some nice golden eggs?

OK...can you guess why?

 Alright, fortunately I didn't have any distress or emergency in my life.

...oh, and also, I wanted to sell them fast too, I couldn’t let these two cash-flowing apartment buildings linger on the market for a while. I really wanted to get rid of them.

I had no distress like those situations I mentioned earlier.

So can you guess why I wanted to sell these long-producing golden gooses in a good job growth market that produced nice cash flow, nice golden eggs?

I’ll tell you why.

That's because I knew I could 1031 Exchange those two gooses for two even larger gooses. Now I won’t get into the 1031 here on a beginner episode. 

But I replaced the two smaller apartment buildings with two larger apartment buildings that would produce even larger eggs if I did it with a quick timeline - and I could defer any tax on my profitable gain. 

I found - I guess - two very fertile egg producers that were going to produce even more cash flow over time.

So...I think you get the message here. To the buyers of my smaller apartment buildings, I appeared as a very motivated seller of cash-flowing property, even though I had no external stress in my life. 

It was due to internal reasons that I wanted to sell...and it’s the internal drive to expand my income. 

No shrinking thinking here at Get Rich Education.

Now, when you’ve found a cash-flowing property that you want to buy, should you make a lowball offer to a turnkey provider? My definition of lowball here, is, a 10% discount. 

We’ll say, that a provider is offering a property for $120,000 - then you’d make the offer for 10% less, which is $108,000. That’s a lowball.

My answer is ... 

No. That’s not going to work. In almost every instance, that’s too much of a discount and it’s going to eat their margin too much. 

Depending on how it’s presented, a seller might even be less motivated to work with you if they get a lowball offer. 

This company has a business to run and with a turnkey property, you’re typically paying for the convenience. You leveraged their systems of them delivering this product to you that’s already renovated, rehabilitated, tenanted, and under management. 

Now, can you can knock off $1K-$2K? And say, offer the seller then - $118K or $119K for the $120,000 property. Yeah, that might work. 

It sure wouldn’t be deemed some unreasonable request. But it’s good to at least provide a reason - some rationale - in asking for the discount.

Let me give you some perspective on this negotiation too. 

For every $1,000 less in a mortgage loan that you take out, how much do you think that saves you in a monthly payment? Did you ever figure out how much that saves you?

Well, at a 5% interest rate on a 30-year loan, reducing your mortgage loan amount by $1,000 saves you … $5. Five bucks in a reduced payment. 

For more perspective, keep in mind too, that once the seller accepts your offer - it’s only the first part of the negotiation.

Later, it’s a negotiation with the inspection. We’ll discuss how to navigate THAT shortly.

I’m Keith Weinhold. You’re listening to Get Rich Education.

____

Welcome back to Get Rich Education. This is your Beginner’s Guide to Real Estate Investing. I’m your host, Keith Weinhold and we’re talking about buying an income-producing property.

That may or may not be a TURNKEY property - which just means that it’s already renovated, tenanted, and under management with a tenant on the day that you buy it. 

Now, once your offer is accepted by the seller, I want to give you - really just a brief outline of what to expect next. 

This isn’t intended to give you every step in exhaustive detail, but this is generally what comes next for United States real estate purchases, and custom varies somewhat from state-to-state.

So with that in mind, once the turnkey provider or seller accepts your purchase offer...

You need to send in your earnest money. Earnest money is not the down payment. It’s a smaller amount that shows good faith that you’re serious about your offer. 

It’s often an amount of $5,000 or less and it shows the seller that you’re serious enough about buying the property that the seller has the confidence to take their property OFF the market and not show it to anyone else.

The seller should give you instructions on how to place your Earnest Money. 

Now remember, your earnest money deposit is not going directly TO the seller, it is going to a third-party escrow account, and it is refundable to you in accordance with the terms of the contract you signed.

Your contract should have an estimated closing date in there. I want to emphasize that the key word there is “estimated”. 

While it is important that all parties work towards closing by this date, between you and me - let’s just be realistic - the reality is that many transactions get delayed beyond the closing date in the contract for a variety of reasons on the seller side, sometimes having to do with construction or renovation delays. 

If this happens, it is nothing to be worried about, just remain in touch with the seller and you can simply sign a contract extension if needed when the time comes.

As you are financing your property, be sure to keep getting your lender anything that they ask you for up so that they can keep processing your loan. 

As your closing gets near, they will probably ask you for some updated information and have some final stipulations from the underwriter, so just remain in close touch with your lender and try to provide them what they need as swiftly as you can.

During most of this time where you’re under contract & even before you’re in-contract to buy the property, most of your relationship with your lender and seller is just sitting around, waiting for the next stage. 

Once construction/renovation is completed on your property, I suggest that you order a professional home inspection before closing. 

As the buyer, this is at your expense, but the home inspection is cheap insurance for you and it is an important part of your due diligence. It might cost you about $300 for a single-family turnkey income property.

A four-plex inspection might cost up toward $800.

When seeking an inspector - seek ASHI certification - that is American Society of Home Inspectors.

You’re looking for an inspector with a good reputation, licensed and bonded. It is good to look for a level of experience as well. The choice is really yours as the Buyer.

Your inspector points out deficiencies in what I’ll break into a few categories. 

#1 is Major concerns – these are significantly defective, safety issues that require immediate repair. Often times, those things MUST be done in order for your lender to even finance the property so the seller is going to do those things for you. That might be adding a railing to a porch.

The second category are recommended repairs – So they’re recommended but not required. That might be adding some extra insulation in the attic. 

The third category is “nice if it were done” - like a kitchen cabinet door that’s a little loose and doesn’t close snugly.

When you get your home inspection report back because the inspector has compiled their findings, the key to remember is that the inspector will ALWAYS return a (usually long) list of items that they recommend be corrected prior to closing. 

Now, this even happens on new construction, so expect some findings.

And remember, you are not closing on the property in the condition it was inspected. Rather, the inspection is just part of the process on the path to getting the property to its final condition. 

Then you and the seller agree on what will be fixed (at the sellers expense, and verified to your satisfaction), prior to closing. 

The seller is anticipating that they will need to make some final repairs (at their own expense) after they get the inspection repair request from you. This is all part of the normal process.

Of course, you can get in a car or hop on a plane and visit the turnkey property yourself and walk the property with your inspector, but I’d say fewer than 10% of turnkey buyers do this. 

But going to see the property in person is never a BAD idea.

Today, it’s easier than ever for an inspector or provider to e-mail you a property video. The report that you get from your Home Inspector after he visited the home will have lots of photos and details.

Typically, purchase offers are contingent on a home inspection of the property to check for signs of structural damage or things that may need fixing. 

This contingency protects you by giving you a chance to renegotiate your offer or withdraw it without penalty if the inspection reveals significant material damage.

Once the seller makes any needed repairs that the third-party inspector found, I suggest having a re-inspection done by that same inspector. This gives you the chance to confirm that any agreed-upon repairs have indeed been made.

You might spend another $100 on this re-inspection.

Now, if the original inspection showed that a leaky faucet needed to be replaced, and the seller said they’d do it, and the re-inspection finds that that work wasn’t done as promised, then any FURTHER re-inspection costs are often a cost borne by the seller.

Which seems pretty fair - they said they’d do work - and the re-inspection that you paid for confirmed that it hadn’t been done in this case.

Now, back to the negotiation. If you asked for a reduced Purchase Price, that could lean away from you asking for too much in the inspection.

How do I like to play it? Often times, I make a full price offer for the property - and I might even let the seller know at that time that I’d like to give you your price - it’s a full $120,000 in this case - and since you got your price, I’d like my terms.

My terms are - that I’m more bold in what I request the seller to do from the inspection findings. 

Maybe I will ask them to add that extra insulation in the attic as one of those “Recommended buy not Required For Financing” items - or replace a window pane that had condensation inside it.

Then, what’s my justification for asking the seller for that. It’s that I’m paying your full price. Again, financing an extra $1,000 only costs me $5 per month.

Now, let’s talk about the property appraisal. 

The appraisal is a tool that the bank uses to verify the quality of their collateral. 

Because in your loan paperwork, at closing, the bank will basically tell you that if you don’t make your monthly payments, you’ll be foreclosed upon and the bank will take back the property - that’s their collateral.

So they want to make sure that the property seems to be worth as much or more than you’re in contract for - that $120,000 in our example.

Your lender is the one that orders the property appraisal, not you. In about 90% of U.S. states, you as the buyer pay for the appraisal. It costs up to about $500. 

The appraiser is a member of a third-party company and is not directly associated with the lender. It wasn’t always that way. 

In fact, one factor that led to the housing downturn of 2007 in the Great Recession is that some lenders & appraisers were “in cahoots”. Haha! That can’t happen anymore. 

BTW, the appraisal and some of these other steps are all part of your closing costs. All part of that … about 4% of the property purchase price.

The appraisal is typically done by a certified appraiser physically visiting the home - and these people always seemingly have a tape measure with them.

The appraiser checks out the premises and their job is to use market comparables to make sure that the lender has adequate collateral in case you, the borrower, default.

OK, the bank doesn’t want to lend out more than the property is worth or else they could find themselves underwater if the borrower defaults. The appraisal protects against this.

And don’t confuse this appraisal with an assessment. An assessment is something that a county or municipality uses the measure the amount of property taxes that are paid. It’s really unrelated to this appraisal.

Now, before you select your Property Manager, I’d really like for you to talk with them on the phone or use a free video chat service like Zoom - it’s Zoom.us - it works a lot like Skype but Zoom is easier to use.

I mean, I don’t make many phone calls in my life anymore - much like a lot of people. But I want you to have a phone or video call with your PM because ...

I want you to have a good vibe - a good feeling about your property manager and to vet that manager just like you would vet out a manager for a non-turnkey company.

Just because a property is branded “turnkey” by a company, doesn’t mean that you can dismiss doing your due diligence. Turnkey can be a great system, but there’s nothing magical about that word alone.

Don’t overlook developing a good feeling about your Property Manager, because this is the one long-term relationship that you expect to have. I just can’t emphasize that enough. Your Manager is one of your key team members.

They’ll tell you the character of the current tenant that’s currently in the home. Find out how the manager is going to pay you. Feel them out, know what your communication flow is going to be like. 

If they’re part of the same company, a good manager should also connect you with whom renovated your turnkey property in case you have some questions for them.

Now, notice that I haven’t mentioned a real estate agent. Most turnkey providers work in a direct model so that you don’t have to go through agents.

You must sign a written Management Agreement with your Property Manager. 

This gives the manager written authority to manage your property for you, it will state their fees, and you’ll have your contact information in that agreement.

There are typically two fees - a leasing fee and a management fee.

A leasing fee is where you’ll spend ½ month’s rent to one month’s rent amount when the Manager screens a new tenant. So hopefully that only happens every 1 or 2 or even 5 years if you’re lucky. 

Yes, you can typically approve or reject their selected prospective tenant. You are going to be the owner of the property afterall.

A management fee is often 8-10% of one month’s rent income - and that’s what you pay monthly - ongoing.

You can sign a Management Agreement with the property provider if they have management integrated in-house. If not, you can lean on your provider for some management recommendations.

Now, there’s one blank to fill in on your Management Agreement - it’s a dollar amount up to which the manager can pay for expenses that come up - against your account - without contacting you. 

For example, if the number $500 is written in there, that means that if a maintenance or repair expense on your property exceeds $500, they must contact you prior to incurring that expense.

You get to choose that dollar limit. As a beginning real estate investor, go with a lower figure. 

Then as you get comfortable and / or you don’t want to be bothered about the property as much, you can increase that dollar limit in which they need to contract you about approving maintenance or repairs.

Basically, if there’s something that has to do with the property & you don’t want to deal with it, then make sure it’s written in the Management Agreement that the manager will perform it.

Typically, it’s going to say that the manager will collect rent, handle tenant relations, respond to repair requests, send you the rent, keep your ledger of income & expenses on the property, post legal notices if a tenant is paying the rent late, and sooo many other associated duties that I personally don’t want to deal with. I just want to live my life.

Get that Management Agreement done - fully executed - signed by both you & the Manager BEFORE you close on the property. 

Before you close, you can buy property insurance from any provider you choose. 

Your turnkey provider is often happy to recommend some providers that their other clients have used in this market, or you can just Google and find your own. 

Be sure to let the insurance provider know that this is a rental property (not a primary residence where you live and not a second home). 

Most turnkey buyers purchase both hazard and liability insurance as part of their policy. Like any other insurance policy, you will have choices about deductibles, monthly payments, and coverage amounts. 

If you are financing your property, your lender will most likely be able to combine your property taxes and insurance into your monthly payment, so you have one monthly payment for principal, interest, taxes and insurance (PITI) … much like you would on your primary residence.

The financing process typically takes about 30 days from the time you submit your EM. 

Remember that YOU are a factor in how fast your property closes. If that lender needs another document, give it to them pretty promptly.

When you have finalized your due diligence, and verified that the seller has made all the agreed upon repairs from the home inspection report, you will be ready to close. 

You likely live in a different state than the property and will close remotely. The title company (or its a closing attorney in some states) will prepare your closing documents - including your loan docs... 

...and can arrange for a mobile notary to meet you with the docs wherever you choose (your home, your office, your local coffee shop, etc.) so you can sign the docs in front of a notary who will then overnight the docs back to the Title Company so the transaction can fund.

Your lender will arrange for a title company to handle all of the paperwork and make sure that the seller is the rightful owner of the house you are buying.

It may seem like the closing process is a lot of work, but you’ll really spend most of the time waiting. Most of the time, you'll just be sitting on your hands, waiting for someone else involved in the transaction to come through. 

So find something enjoyable to occupy your time and distract you while you wait, and feel secure in the knowledge that you've done your research and know how to make your closing process go smoothly.

When you complete that closing with the mobile notary - I’ve done these closings at my home’s dining room table, or even in my employer’s conference room back when I used to have a day job - then, hey! 

You need to congratulate yourself on adding another income property to your portfolio.

You know, the good news is that of all of these stages we’ve discussed - the longest stage of them all is your ownership of the property. You Own & Collect the cash flow.

And hey, this isn’t reason enough alone - but it’s kinda cool that you own property in TN and FL and IN. 

You own part of each one of those states. 

And with each new turnkey property you buy, you might have just increased your mostly passive cash flow by $311 per month or $118 per month or whatever it is.

If you can swing it, it can be more efficient timewise for you to buy more than one property at a time.

As you buy more income properties, it not only gets easier because you know the process, but you often get quantity discounts.

For example, a management company might charge you a 9% management fee on your first three properties, but once you own four or more, they might charge you 8% on all four rather than 9%.

Insurance companies often have similar discounts for you….so you may very well get a little more profitable as you buy more property.

A rent-to-value ratio of 1% is generally quite desirable, meaning one month’s rent is 1% or more of the purchase price.

For example, a $120,000 property and a rent income of $1,200. 

$1,000 rent income on a $120,000 property would probably work fairly well too.

You typically want to avoid properties with RV ratios of less than 7/10ths of 1%, or 0.75. 

Let’s keep in mind that the RV ratio is only a rule of thumb. It doesn’t account for a major recurring expense like property taxes.

In high property tax jurisdictions like many Texas markets, you probably want that RV ratio up higher.

Now, as a beginning real estate investor, or even an advanced one, don’t worry about not know it ALL. No one’s ever going to know it all with real estate.

In fact, I’ve been actively investing in real estate since 2002 and just within the steps of ACQUIRING a property, like I carefully discussed today, some incremental half-step will come up in the process that I hadn’t been thinking about previously - like signing a Lead Paint Disclosure Form.

So, you don’t need to commit all of this stuff to memory.

Now, something that novice real estate investors say sometimes is something like: “I would only buy an income property that I would live in myself.” 

I contend that that is an awful criterion upon which to found strategic fundamentals on purchasing an income property.

Once one filters property that way, they have let their emotions trump facts. 

If the fact that a clean, safe, affordable, and functional property has a good occupancy rate in a sound employment market, decent ENOUGH neighborhood, and the numbers make sense - that’s more important.

OK, you aren’t living there yourself so it’s not a sound criterion.

Shoot, if I moved into any income property that I own, my lifestyle would take a substantial hit. Yet I’m not a slumlord - I provide housing that’s clean, safe, affordable and functional.

But they’re not replete with fantastic amenities, it does not have Corinthian architecture with alabaster columns - OK - but I know there’s a demographic for my rental property type that demands this responsible-but-no-frills housing over time.

It’s about asking yourself a better question, like, “Will this property secure an income stream?” 

Alright, would you rather have your property look “cute as a button” - or secure an income stream?

OK, we’re investors here.

Some think that in today’s electronic age, you should be able to complete a property purchase from the time you write an offer until you close on a property in the same-day. 

Well, that’s certainly not true. As you witnessed, physical things need to take place because you’re buying a real, physical asset.

We’ve been talking today about how you buy an income property - just simply that - especially as it pertains to buying an out-of-state turnkey income property - from the time that you get a property under contract and submit the earnest money to escrow all the way to closing.

...because that’s how to generate passive income, which in turn, creates a rich life for you.

Again, this isn’t an all-encompassing guide today with EVERY little detail. But we’ve hit the major milestones in the process & more.

You’ve got a good general guide on the income property-buying structure. 

You might have learned something about prioritization - perhaps LLCs matter less than you thought and a communicative Property Manager matters more than you thought.

Today’s show has the type of content that will be about as relevant 5 years from now as it does today. 

Now, today is also evidence that real estate does not have the liquidity that some other investments do. It takes longer to get in & get out.

However, that low liquidity actually contributes to relative price stability in real estate. OK, there’s no panic selling in real estate.

Maybe the most important thing for you to keep in mind is that...

You cannot make any money from the property that you don’t own.

Your future depends on what you do today.

To “know” something and not “do” something is to really not know something.

The most important thing you can do is act...because you cannot make any money from the property that you don’t own.

Again, a recommended, specific INCOME property lender is Ridge Lending Group.

Our network of income property providers is at GREturnkey.com

And one particular property provider to highlight over there is Memphis, Tennessee’s Mid South Home Buyers. Not only are they great with beginners, but they have profitable properties at lower price points, which some beginners would rather start with.

MidSouth Home Buyers has been rather popular for all those reasons and that’s created a longer wait list. Well, the news is that MidSouth Home Buyers has just expanded into another great investment market - Little Rock, Arkansas.

So that should help shorten their wait list.

If you can’t remember those three resources - Ridge Lending Group for the loan, GREturnkey and MidSouthHomeBuyers for the properties, I’ll be sure that they’re the first three links in the “Resources Mentioned” portion of the Show Notes accompany this episode.

There would be nothing worse than for me to share today’s knowledge with you - then not let you know where to go to act upon that knowledge.  

It’s been my pleasure to bring you your Beginner’s Real Estate Investing Audio Guide today. If you got value from today’s show, I’d be grateful if you took a screenshot of the podcast player image here on your podcatcher …

...and posted it to your Social Media account - your Facebook, Twitter, Instagram, or LinkedIn - and let your social friends know that if they’re ever interested in real estate investing, this episode is a great place to start. 

Next week, I’ll talk about how you Retain your tenants at the same time you RAISE the rent. 

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

Jul 15 2019

54mins

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Rank #4: 56: Investment Property Loans and Mortgage Closing Costs with Caeli Ridge

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#56: Learn today’s financing qualification requirements for investment property with Caeli Ridge, Owner and CEO of Ridge Lending Group.

This pertains to conventional financing of: single family homes, duplexes, triplexes and four-plexes that you do not intend to occupy.

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

Listen to this week’s show and learn:

00:52  If you want to control more property, you need good loans.

04:50  Compared to last year, are borrower requirements more rigid or more lax?

07:39  Your credit score, debt-to-income ratio, percent down payment, reserve requirement.

12:46  Qualifying for your first 4 properties is different from your 5th through 10th financed properties.

15:47  Qualifying for your 11th through 35th financed properties.

17:13  Can foreign buyers qualify? Also, LIBOR comments.

19:28  Maximizing your cash-on-cash return when structuring a financed offer.

21:21  Buying income property outside the state where you reside.

22:44  Minimum loan amount is $50,000 to $60,000.

26:10  What is a Good Faith Estimate?

27:58  Closing costs - what are they and where do they all come from?

30:58  Why you would want to pay a 2% Origination Fee rather than 1%. It’s by paying 1 Discount Point to “buy down” your interest rate.

32:55  Recording costs, transfer taxes, escrow charges, appraisal fees, processing fees.

36:02  Title Insurance

Resources:

RidgeLendingGroup.com

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

NoradaRealEstate.com or call (800) 611-3060. Your Premier Source for 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

Nov 06 2015

44mins

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Rank #5: 126: Robert Kiyosaki | You Are The President Of Your Own Life

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

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

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

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

Keith hosts today’s show from Anchorage, Alaska.

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

Listen to this week’s show and learn:

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

04:23  Robert Kiyosaki interview begins.

05:12  Kiyosaki: Our school system is corrupt.

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

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

11:16  Dying capitalism in the United States.

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

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

16:39  “Printing money on demand.”

18:17  Oil prices.

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

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

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

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

30:32  What can the everyday person do?

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

34:45  Weinhold on debt.

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

39:35  Ripping 401(k)s.

41:16  Telling yourself the truth.

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

Resources Mentioned:

RichDad.com

Amazon: Rich Dad, Poor Dad

NoradaRealEstate.com

TheRealAssetInvestor.com/GRE

HighlandsMortgage.com

MidSouthHomeBuyers.com

GetRichEducation.com

Mar 10 2017

48mins

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Rank #6: 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

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Rank #7: 127: Don’t Be Debt-Free. Be Financially-Free.

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#127: You are invested in a zero-return investment. Home Equity is unsafe, illiquid, and its rate of return will always be zero. Then why are you so heavily invested in home equity?

We discuss strategies to turn this around, and use home equity as a wealth-builder for you.

Making extra mortgage principal payments on one’s home is usually a terrible idea.

Striving to be debt-free often prevents one from becoming financially-free. You'll see why.

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

Listen to this week’s show and learn:

03:57  ROI.

04:28  Turnkey income property inventory keeps tightening.

06:33  You have money that you didn’t know you have.

07:35  Your value as a listener.

12:04  How much of a zero-return investment would you want?

13:44  Debt-Free vs. Financially-Free.

17:01  Property equity is unsafe, illiquid, and has zero rate of return.

20:18  Equity transfers.

24:46  Making extra principal payments on one’s home.

26:55  “Feelings.”

27:32  30-year fixed vs. 15-year fixed amortizing mortgage loans.

34:56  Control.

41:51  HELOCs.

Resources Mentioned:

NoradaRealEstate.com

TheRealAssetInvestor.com/GRE

HighlandsMortgage.com

MidSouthHomeBuyers.com

GetRichEducation.com

Mar 17 2017

46mins

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Rank #8: 6: Here’s Why You Aren’t Financially Free

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

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

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

Homes are for housing people. Not storing cash. 

Opportunity cost is opportunity lost. 

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

Nov 21 2014

37mins

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Rank #9: 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

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Rank #10: 46: The Money That You Didn’t Know You Had (Archives)

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#46: You’re likely putting a lot of your money at risk right now, and that same money is achieving zero rate of return.

Subscribe on Apple Podcasts so you never miss an episode.

Listen to this week’s show and learn:

01:01  How Keith got the financial ability to get into so many investments at a young age.

03:07  Risk-free return vs. return-free risk.

05:41  Today, what you thought was “right-side up” in the world, could turn “upside-down.”

08:08  Why are you investing in a vehicle that could never go up in value, but could only go down?

09:45  Would you rather be debt-free or financially free?

12:48  Home equity is: 1) Unsafe, 2) Illiquid, and 3) has zero rate of return. Home equity is one of the worst “investments” you can make.

17:01  “Equity transfers” can enhance your rate of return.

21:14  It’s sad that some borrowers make extra mortgage principal payments without understanding what they’re doing.

23:38  30-year vs. 15-year mortgage loans. Keith tells you which one he likes more - by far.

25:28  Banks are more likely to foreclose on your property if you’re financially uneducated.

27:32  A catastrophic loss is another reason that home equity is an awful investment.

31:01  Your equity position does not change your control of your property.

32:32  Homes are meant to house people, not store cash.

35:12  How “paying off” Keith’s home would be a reckless decision.

36:11  When you pay off your home, you just sent your money away to “retire.” That’s the reason that you cannot retire.

Resources mentioned:

MidSouthHomeBuyers.com or call (901) 217-4663 for top-notch turnkey rental properties.

Visit GetRichEducation.com to subscribe to our free newsletter or 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.

Aug 28 2015

44mins

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Rank #11: 128: Five Money Myths That Are Killing Your Wealth Potential

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#128: These five money myths are killing your wealth potential.

Don’t believe: 1) Get your money to work for you. 2) Compound interest creates wealth. 3) Be debt-free. 4) Home equity has a rate of return. 5) Live below your means.

All five of the above are money mindset myths. If you believe them, you won’t create wealth.

Real estate investing cures all five money mindset myths.

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

Listen to this week’s show and learn:

02:07  Your brain is programmed to survive rather than thrive.

06:10  Why dispelling mindset myths is important.

10:46  Other people’s money.

16:23  Example of financial leverage.

17:39  Don’t be debt-free; be financially-free. Examples.

24:45  Inflation-hedging.

26:15  Compound Interest vs. Leverage.

28:41  “Millionaire.” Who cares?

31:12  Equity has zero rate of return. It’s unsafe and illiquid. Examples.

35:25  Equity transfers.

37:29  Should you pay off your primary residence?

39:26  Lawsuits.

40:28  Myth: “Live below your means.”

43:10  Don’t budget.

44:32  Question your answers.

45:49  The power of being bold.

Resources Mentioned:

PassiveRealEstateInvesting.com

NoradaRealEstate.com

TheRealAssetInvestor.com/GRE

HighlandsMortgage.com

MidSouthHomeBuyers.com

GetRichEducation.com

Mar 24 2017

49mins

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Rank #12: 43: Your Real Estate Investing Strategy

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#43: Turnkey real estate investing in 3-4 geographic markets can be a smart formula for potentially high rates of return and low volatility.

01:35  The U.S. stock market has not had a correction for four years. The S&P 500 Index is near an all-time high.

04:03  Nationally, real estate values are still not as high as their 2006 peak.

07:24  Why markets are more volatile with a 0% Federal Funds Rate.

10:32  Be invested in 3-4 geographic markets.

14:50  Typically, an income property’s cash flow rises faster than inflation.

24:16  The importance of giving.

28:20  Investments you can make with little of your own money, Panama coffee farm tour dates announced.

32:30  Announcement of a turnkey investment property network of seven investor-advantaged metro submarkets that you can participate in.

Resources mentioned:

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, andAndroid!

Aug 07 2015

39mins

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Rank #13: 54: Building You: Your Credit Score with Philip Tirone

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#54: Today you are going to learn more about credit scores than you ever have. We’re joined by 720 Credit Score’s Philip Tirone.

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:

01:33  A high credit score reduces your cost of capital, and maximizes your ROI.

08:28  You can have bad credit even if you pay your bills on time.

09:04  Credit scores matter for: property loans, car loans, insurance, employment, credit cards, more. 61% of employers run your credit report before hiring you.

10:21  Why credit scoring is a monumental scam. Yes, a scam.

11:45  You can have a clean credit report, yet poor credit score.

13:45  Many credit repair companies use illegal tactics.

15:03  46% of credit cards in your wallet do not report proper information to the credit bureaus.

18:28  You need 3 to 5 credit cards.

20:20  Get credit cards that: 1) Report to all three bureaus. 2) Report the proper credit limit.

21:03  Credit card utilization ratios. American Express often behaves differently.

23:30  FICO credit scores are the ones that matter.

26:07  U.S. vs. Canadian credit scoring Other developed western countries like Great Britain and Australia are similar.

27:10  The well-known pie chart at www.MyFico.com.

28:10  Installment loans’ importance.

29:02  Credit utilization ratio “breaks” at 100%, 90%, 70%, 50%, 30%, 10%, and 0%.

31:57  Credit inquiries and how much they matter; controlling credit report errors.

33:50  If your credit score is already above 720, you could still be brought down by one error.

34:55  Collections.

36:42  Get free credit reports (not scores) annually here: AnnualCreditReport.com

40:00  Why banks lack motivation to help you improve your credit score.

Resources:

720CreditScore.com - Philip Tirone’s company that helps clients rebuild their credit.

MyFico.com

AnnualCreditReport.com

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

NoradaRealEstate.com or call (800) 611-3060. Your Premier Source for 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

Oct 23 2015

45mins

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Rank #14: 50: Keith Weinhold | Don’t Quit Your Day Dream

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#50: If you don’t have a concrete day dream, then how will you know what success is?

How do you reach your day dream? What must you avoid to reach it?

Want more wealth? Visit GetRichEducation.com and Subscribe to: 1) Our free newsletter, and 2) Maverick turnkey RE webinar opportunities.

Listen to this week’s show and learn:

01:02  When you own enough cash flowing rental units, you are financially free. What’s your number?

03:18  Goals vs. Dreams.

10:04  One big key to reaching your day dream and what you must avoid.

14:24  Leverage, abundant thought.

17:30  The #1 question that you need to ask about an investment.

19:44  Employer-sponsored retirement plans like 401(k)s are costly. You’re committing Life Deferral just to get Tax Deferral. Stop.

25:55  The exotic Panama Coffee Farm Tour is November 13 - 15th, and you’re invited! And it’s free. Come meet Keith. Send an e-mail to Coffee@GetRichEducation.com

34:20  Quit committing Life Deferral.

35:18  Dan Sullivan and the four Cs: Commitment, Courage, Capability, then finally,  Confidence.

37:52  Why be a millionaire? You already own a multi-billion dollar asset.

38:48  Dr. Martin Luther King, Jr. and Margaret Thatcher were day dreamers.

Don't quit your day dream. Live it.

Resources:

E-mail Coffee@GetRichEducation.com to buy your cash-flowing Panama coffee farm parcels.

MidSouthHomeBuyers.com or call (901) 217-4663 for top-notch turnkey rental properties.

Visit GetRichEducation.com 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

Sep 25 2015

44mins

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Rank #15: 24: J. Massey of Cashflow Diary | How He Amassed Wealth With No Money

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#24: On the brink of homelessness, J. Massey pulled himself up. He became a master of raising private capital for deals without using any of his own money – because he didn’t have any.

In fact, he’s amassed a fortune and has still never used a bank for a real estate loan.

Listen to this week’s show and learn:

00:56  People’s worst financial trade of their life is one that they keep making every week.

06:07  J. and his wife’s touching story and rise from nowhere. They had to sell items on eBay to pay monthly utility bills.  

13:04  By the time J. owned 117 houses, how others responded.

14:40  Real estate “wholesaling” is where J. first gained traction.

17:22  Today, “raising private capital” is the skill that J. helps others with to obtain wealth.

23:14  Raising private capital from others.

27:01  How does a beginner start to raise private capital from others? Details at CashFlowDiary.com/MoneyTool

31:20  How much time and what character traits are needed to raise private capital?

Resources mentioned:

CashFlowDiary.com/MoneyTool

Get a free audiobook & 30-day free trial at AudibleTrial.com/GetRichEducation

Join the Facebook Page at Facebook.com/GetRichEducation

Now on Twitter! Follow us: @GetRichEd

Mar 27 2015

38mins

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Rank #16: 137: GRE Listener Eric Pratt Tells How He Built $3,600 Passive Monthly Income with Turnkey Property

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#137: GRE listener Eric Pratt is today’s guest. His passive monthly RE income is $3,600, soon to be $4,600.

He bought turnkey income properties: 6 in Memphis, 1 in Atlanta, and soon expects to close 1 in Birmingham. He carries 7 mortgages.

Eric is in his 40s, married, and is a police officer in Anchorage, Alaska. Learn about how GRE has changed his life, and learn about one speed bump that he hit on the way.

This show has been on the air every week for more than 2 ½ years and it’s changing lives. It’s time to hear your story. Keith tells you how you can be on the show with him.

Keith brings you today’s show from Anchorage, Alaska.

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

Listen to this week’s show and learn:

04:23  Today’s guest, Eric, had never heard of a podcast before learning about GRE.

06:04  Growing up in a financial family: Dad - banker; Stepmom - accountant.

09:34  Eric’s first investment property was bought in Las Vegas in 2001.

14:20  Eric used to invest out-of-state without knowing about turnkey RE investing. He previously tried to put the “team ingredients” together himself.

15:25  His first turnkey investment property was bought in Memphis in 2015 through Mid South Home Buyers.

16:45  Some think turnkey real estate investing is too good to be true.

19:01  Guest’s former mission to be debt-free changed to becoming financially-free.

24:40  Paid 6 ways at the same time?

26:26  Eric self-manages one property. Lesson learned: buy from a provider with in-house management rather than third-party management.

29:17  Paying $61,000 cash to own a Memphis property free-and-clear.

31:12  Carrying 7 mortgages.

32:06  Offering full asking price on turnkey properties?

33:21  Eric’s passive monthly RE income is $3,600, expects it will soon be $4,600.

38:23  He has an employer pension.

39:27  The Abundant Mindset.

41:32  Birmingham, Alabama’s surprising revitalization.

43:50  Eric leaves his personal e-mail address for you: pratts@ak.net

Resources Mentioned:

MidSouthHomeBuyers.com

Birmingham Turnkey Property

NoradaRealEstate.com

HighlandsMortgage.com

GetRichEducation.com

GREturnkey.com

Guest E-mail: pratts@ak.net

May 26 2017

49mins

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Rank #17: 90: Harry Dent | This Bubble Is About To Burst

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

Harry authored the popular book “The Demographic Cliff.”

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

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

Listen to this week’s show and learn:

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

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

07:40  Demographics are powerful in making predictions.

08:03  Money printing.

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

11:45  Renting property for positive cash flow.

13:27  Vacancy rates - U.S., China.

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

16:08  Predictions: Real Estate vs. Stocks.

17:30  Demographics’ historic influence on real estate.

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

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

29:34  How bad will the economic crash get?

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

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

39:28  The Demographic Cliff.

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

Resources Mentioned:

HarryDent.com

CorporateDirect.com

NoradaRealEstate.com

MidSouthHomeBuyers.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 01 2016

53mins

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Rank #18: 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

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Rank #19: 33: Why You DON’T Want To Be A Millionaire

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#33: Millionaires are not wealthy. In the end, you ultimately don’t seek financial wealth anyway.

Listen to this week’s show and learn:

01:31  GRE is perhaps the only show that regularly delivers all three: education, actionable content, and motivation.

02:35  Listeners are taking action toward a GRE mantra of “Don’t follow money. Make money follow you.”

04:38  If you aspire to be a U.S. dollar millionaire, you’re losing.

08:24  Inflation debases a dollar’s value and the worth of a millionaire.

09:54  Why America continues to have an inflationary mandate.

11:58  Wealthy people buy time. Middle class and poor people sell time.

14:44  Living well and giving well trumps the financial wealth created through real estate investing. Most forget this.

16:58  How wealthy people buy fun toys that enhance their lifestyle.

18:40  Keith’s “hero”.

20:22  At the end of your life, how will your autobiography or obituary read if it tells the truth?

23:12  Mark Podolsky, aka “The Land Geek”, has a compelling, profitable business model that you can learn.

25:01  How to contact Keith if you would like him as a live speaker at your event.

Resources mentioned:

www.TheLandGeek.com/GRE

www.MidSouthHomeBuyers.com

New! Check out the beta version site at GetRichEducation.com

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

May 29 2015

27mins

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Rank #20: 53: Building You: What’s Your Income and Cash Flow?

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#53: Your income and cash flow tell you about yourself and your allocation.

What proportions are active, earned, and passive income? Where are you vulnerable?

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

Listen to this week’s show and learn:

02:45  Most people’s #1 cash flow source is their work-a-day job. But they’re trading their time for dollars.

04:02  Here’s how to best determine your cash flow. Cash flow is simply income minus expenses.

05:54  Current U.S. median household income, Top 10%, and Top 1%.

10:02  You need cash to function in an economy, not equity.

11:32  How you can have a negative net worth, yet be financially free.

15:25  Trace your personal cash flow to different industry sectors.

22:04  “Budget” is almost a swear word.

25:07  Turning equity into cash flow.

28:14  “Retirement calculators” don’t work for real estate investors.

32:12  The Outsourcing Myth.

Resources:

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

NoradaRealEstate.com or call (800) 611-3060. Your Premier Source for 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

Oct 16 2015

39mins

Play