Get Rich Education

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 h

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 fl

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. __________________ Wan

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

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

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-

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 I

Tenant retention begins before move-in:  Use a move-in checklist with the tenant. Move-in gift and packet. Communication.   Ongoing tenant retention during occupancy: Inspections every six months. Be attentive with service calls.   How to achieve a rent increase: 45 days’ notice. Use phone. Substantive reason: increase in property tax or maintenance costs.  Remind tenant of moving costs. Offer an upgrade - carpet cleaning, ceiling fan, etc. 2 - 5% annual increase typical.   We discuss why not every tenant is worth retaining.  Dayton, OH has 1% rent-to-price ratios and an MSA population of 800,000. Also: Proximous to Cincinnati and Columbus.  Health care. Military. Manufacturing. 3 Amazon fulfillment centers within 45 minutes.   Learn more about the Dayton turnkey provider here.  In-house property management. Use luxury vinyl plank, white kitchen cabinets, newer HVAC & water heaters. 1-year and 3-year warranties. 97% occupancy rate. Leases up to 18 months. 3/1 SFHs: Rents $750 - $1,300 | Purchase

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,

Property management is the glue that makes your investment stick together. But it’s a tough job. GRE’s own John Collins has done management consulting on a project of 159 single-family rental homes. Problems he encountered: 30% pay rent late or not at all Arson Unassigned parking spaces Domestic violence  Abandoned car Condensation Pets and pests “Jerry Springer Show” in leasing office Unwanted boyfriend that wouldn’t leave Syringes found in home Daylight coming in through baseboard   Upgrading tenants from C-Class to B-Class. Raising the rent attracted better tenants. With just a $3 monthly rent increase per unit at a 6% cap rate, the project value increases $100,000. We break down the math. What gets measured gets improved. Maintenance issues occur with a property about quarterly. Practicing “tactical empathy”.  To contact John, e-mail info@getricheducation.com with “For John Collins” in the subject line. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/B

Long-term rentals beat AirBnb and other short-term rentals (STRs) in a recession.  STRs depend on vacationers. Stocks typically have a Cash-On-Cash Return of zero. Investor-advantaged property typically sells for $70 to $150 per square foot. Gregg Cohen joins me to discuss the importance of market appreciation for cash flow investors. Get started with new construction investment property at: GetRichEducation.com/Jax. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: Jacksonville Turnkey Property: GetRichEducation.com/jax Tampa Real Estate Field Trip: RealEstateFieldTrip.com Mortgage Loans: RidgeLendingGroup.com Turnkey Real Estate: NoradaRealEstate.com QRP: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.co

If a Depression occurs, you’ll feel pain as a real estate investor. RE values and rents will both decrease. Awful. But stock and mutual fund investors will likely feel greater pain. Learn why today. Real estate investors maintain control. Interest rates would tend to go lower in a Depression. You could refinance. It’s also a better time to improve your property because people will be out of work. Join our Tampa Real Estate Field Trip October 10th to 12th, 2019 in St. Petersburg, FL. __________________ I answer four listener questions today: What happens to RE investors in a Depression? Should I invest in a college area? Do I need a home inspection? Can you explain Scarcity vs. Abundance? __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: Tampa Real Estate Field Trip: RealEstateFieldTr

Will your property lose value now that Amazon is selling homes for under $20K? Pre-fabricated homes and 3-D printed homes often have major limitations and livability problems. All homes have materials cost, labor cost, and the cost of the underlying land. Mortgage interest rates just hit a 21-month low. Home prices are expected to rise 4% over the next year. ________________ Guest Dave Zook discusses the opportunity to invest in ATMs. U.S. cash use is increasing at 5% annually. Many ATM users pay $2 - $3 to access $20 or $40. There’s a profitable opportunity for you to invest in ATMs. Learn more here. 24.5% is your projected CCR on a lot of seven ATMs. Terms discussed: pre-fabricated home, 3-D home, cash call, accredited investor. If you’re an accredited investor, learn more about ATM investing at www.GetRichEducation.com/ATM __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) R

You’ve never thought about this “new way” to beat inflation. Three ways to beat inflation: 1) Tie long-term fixed interest rate debt to a cash flowing property. 2) Own gold. 3) Spend your money. Yes, I advocate spending your money. Die with memories, not dreams. Housing Data Analyst Logan Mohtashami joins us. Logan provides mortgage interest rate predictions to BankRate.com. National Mortgage News calls him a “social media star.” He’s published in Business Insider, Bloomberg Financial. He believes: Interest rates will stay low There’s no housing collapse imminent Housing price growth will slowly continue Rent demand will stay strong Homeownership rate up to 66% in a decade Inventory will stay low because people live in their homes longer Birth rates will rise Our high national debt doesn’t matter Logan is known as “The Chart Guy”. Learn more about him at LoganMohtashami.com. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey re

Single-family homes are today’s hottest rental type - both Realtor.com and John Burns RE Consulting agree. Boomers don’t want the responsibility of homeownership, and also don’t want to live in an apartment. This makes SFHs the hottest rental. Rental demand has shifted to basics: affordable, fewer amenities, better school districts. Suburban markets should see the concentration in future growth. Seth Williams of REtipster.com joins us to discuss the best real estate investing websites and apps. We also discuss self-storage facilities. Apps and websites: DealMachine helps you find deals. DealCheck helps you analyze deals. TenantCloud helps you self-manage rentals. BombBomb is a video e-mail service. Trello and Slack for workflow. Blinkist condenses books. RentOMeter estimates rents. Dropbox and Google Drive manage files. Evernote stores notes. DocuSign for digital contracts and signatures. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actiona

Compound interest doesn't work in real life. 5% is the average mutual fund investor return, though the S&P returned 10%. This is for the twenty years ending in 2015 (Source: Dalbar). This is even before taxes and inflation! Why are 401(k)s failing people? Inflation, emotion, taxes, fees, and volatility. Emotions make humans sell high and buy low - a recipe for disaster. I discuss how cash flow helps you remove emotion. Garrett Gunderson of Wealth Factory joins us. Financially-free people prioritize this way: value, cost, then price. Economic independence has five levers: Recover cash Engineer wealth Accelerate investment income Scale business revenue Treat yourself as the greatest asset Behavioral finance is where investing meets emotion. Facts don’t change people’s minds. I discuss what does. “Facts are stubborn things. But our minds are even more stubborn.” -John Adams __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey re

Your equity is re-positioned when you make a 1031 Tax-Deferred Exchange. All at once, you can: Increase your cash flow Increase your leverage ratio Create arbitrage Increase your velocity of money Expand the value of your RE portfolio Do it all with zero tax on the gains Gain geographic diversity Real estate capital gains tax is higher than many think: 15% - 23.8% Federal, plus State of up to 13.3%, plus Depreciation Recapture. Californians could pay 37%+ in capital gains tax. Fortunately for real estate investors, you can defer all of these taxes with a 1031 Tax-Deferred Exchange. We discuss your 45-day and 180-day timelines, “like-kind”, your Qualified Intermediary, and 1031 traps to avoid. Columbus, Ohio could potentially be a wise place to exchange your equity into. Why Columbus? Ohio’s largest city and capital Fortune 500 companies High rents & low purchase prices Growing city Family-friendly suburbs Low cost of living with good incomes 14th-largest U.S. city SFR Rents $800 - $1,300, Prices $80K -

More people are renting. The homeownership rate has declined to 64%, from 69% in 2005.  Credit score “inflation” has occurred due scoring model changes and a strong economy. The average FICO score is now 704, a record high. GDP in Q1 grew 3.2% year-over-year, exceeding expectations. A new program called the Home Select Loan (All-In-One Loan) operates similar to a 1st Lien HELOC. Ridge Lending Group President Caeli Ridge & I discuss the details: Line Of Credit for 30 years 80% LTV on home, 70-75% LTV on investment property No principal payments due for ten years Potential interest savings Better liquidity Interest rate based on LIBOR + a margin Use the simulator to see how much interest you save vs. your current mortgage. I bring you today’s show from Dallas, TX. __________________ Want more wealth?  1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths ____

If you make $110K per year unfulfilled, would you leave that job to make $78K fulfilled? Commentary. Learn how to put only a 5% down payment on your home, get a great interest rate with conventional financing and pay zero monthly Private Mortgage Insurance (PMI). GRE Listener Anna Ferntheil joins us. She is a former co-worker of mine at the State Department Of Transportation. Still at her day job, Ferntheil has bought her first two turnkey properties in Ohio at GREturnkey.com, totalling about $400 of total monthly cash flow. Rather than “trading her time for dollars” for decades, she’s building passive income streams through real estate. She now “thinks different”. Ferntheil stresses the influence of associating with like-minded people. She’s also investing in our referred Private Money Lending program, cash-flowing agricultural real estate, and moving her retirement to an eQRP (Enhanced Qualified Retirement Plan). You don’t want “job security”; you want freedom. Security is the opposite of freedom. Today’s s

Keep your debt. Get financially-free instead. We’re talking about good debt. Retiring your debt often means you can’t retire yourself. Home equity is: Unsafe. Illiquid. Has zero rate of return.   So then, why have so much equity in any one property? Back in The Great Depression Era, banks could call your loan due-in-full anytime. They can’t do that today. Don’t fear mortgages. Embrace them; even collect them! Every dollar that goes into mortgage principal paydown is a dollar that you didn’t invest. Separating equity from your home gives you more dollars to invest, not save. Paying down your mortgage INCREASES your foreclosure risk. Most think the opposite is true. Have a lot of home equity? Treat it as you like. But you probably have more dollars to invest than you think. So what’s the formula? Consider keeping low equity positions in many cash-flowing investment properties. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey re