Get Rich Education

Real Estate Investing with Keith Weinhold
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Get Rich Education

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 grow 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.

  1. Will a Boomer Selloff Make Housing Prices Crash?, This Vice is Destroying Young Men

    4 DAYS AGO

    Will a Boomer Selloff Make Housing Prices Crash?, This Vice is Destroying Young Men

    Keith discusses the impact of baby boomers on the housing market, noting that contrary to popular belief, many boomers are choosing to age in place. He also addresses the negative effects of gambling, particularly sports gambling, on young men, including financial ruin and increased bankruptcies. 54% of baby boomers state that they will never sell their homes.  People aged 55+ own more than half of U.S. homes. The overall population growth in the US has grown at its fastest rate since 2001, reaching over 340 million. Millennials and Gen Z, the largest generations, are driving future housing demand.  Resources: GRE Free Investment Coaching:GREmarketplace.com/Coach Show Notes: GetRichEducation.com/541 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  You get paid first: Text FAMILY to 66866 Will you please leave a review for the show? I’d be grateful. Search “how to leave an Apple Podcasts review”  For advertising inquiries, visit: GetRichEducation.com/ad Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE’ to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript:   Automatically Transcribed With Otter.ai    Keith Weinhold  0:01   Welcome to GRE. I'm your host, Keith Weinhold. All the baby boomers are about to sell off their homes and downsize, unleashing a glut of supply onto the market, and housing prices crash. Is there cogency to that theory or not? I give you a definitive answer, the Trump bump, then later, a pernicious vice is destroying more people's lives today, especially young men and almost no one is talking about this. It's leading to lower credit scores, more bankruptcies and even more suicides today on get rich education   since 2014 the powerful get rich education podcast has created more passive income for people than nearly any other show in the world. This show teaches you how to earn strong returns from passive real estate investing in the best markets without losing your time being a flipper or landlord. Show Host Keith Weinhold writes for both Forbes and Rich Dad advisors and delivers a new show every week since 2014 there's been millions of listener downloads of 188 world nations. He has a list show guests and key top selling personal finance author Robert Kiyosaki, get rich education can be heard on every podcast platform, plus it has its own dedicated Apple and Android listener phone apps build wealth on the go with the get rich education podcast. Sign up now for the get rich education podcast or visit get rich education.com.   Corey Coates  1:25   You're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education.   Keith Weinhold  1:41   Welcome to GRE from Hyannis, Massachusetts to Hiram, Utah and across 188 nations worldwide. I'm Keith Weinhold, and you are inside get rich education episode 541 just another slack jawed and snaggletoothed podcaster here now a popular, I suppose, media narrative that's been out there for a long time is this premise that US housing prices are going to crash hard because all the aging baby boomers are going to sell their homes, and Boomers are the biggest generation in all of American history. This is just going to magnify the price collapse. It means far more home sellers than buyers. So soon enough, sellers will have to keep cutting prices. Everyone's going to undercut everybody to compete with all of these for sale homes. So as a result, everybody's property values are going to collapse today. Let's look at how bad it will get. Should you get ahead of this and sell it all now and then? I'll even tell you when this popular narrative will supposedly happen with boomers selling en masse, or won't it happen at all. That's what we're looking at, the term silver tsunami. You've probably heard that thrown around in the real estate world. It actually refers to pent up housing stock that older homeowners will eventually choose to sell, which would have that effect of flooding the market with all this new inventory. All right. Now let's define what we're talking about here. Baby Boomers are the generation born just after World War Two, between 1946 and 64 that makes them between the ages of 61 and 79 this year. Okay, so basically, these people are in their 60s and 70s. That's their age. My parents are baby boomers. President Trump is at the upper age limit for a boomer, but they're not all as old as you think. I mean the youngest baby boomers include Michelle Obama, Sandra Bullock and Rob Lowe. So not all boomers are like super old, but see, it is a big generation of over 76 million people. So whatever they do really moves the economy. And maybe you've heard it been said, My gosh, what if we have more dyers than buyers? But now a more nascent trend is that you hear about more and more boomers and people older than boomers not selling their home instead wanting to age in place. And that just means they want to stay in their home and not go to a nursing home or assisted living. And that was recently quantified in a survey that Housing Wire reported on it found that 54% of baby boomers say that they'll never sell their homes, some of them passing homes along as inheritance and see often that's because their home is paid off and assisted living care costs are through. To the roof, more than half of boomers don't have any mortgage at all. All right, so we've established that boomers aren't as old as most people think, and then a lot of them aren't planning to sell. But still, let's look for trouble here, because boomers are a huge group, and some portion of them are going to sell is they age, even if a lot of them say that they won't. How about the almost half of boomers with a mortgage? You know what? Here's the thing, if they downsized, like older people have traditionally done. I mean, my grandparents downsized long ago. But do you know what would happen if boomers downsized? Today? For most, their monthly mortgage payment would actually go up if they downsized. That's because of today's higher mortgage rates and home prices. And see, that's a financial reality that keeps them in place. They're never going to downsize. All right, so a lot of boomers are just not going to sell. But still, this wave of selling boomers crashing the housing market, this has been a popular narrative for, I don't know, maybe more than a decade. Now there's been a lot of smoke, so then where is the fire. That's another way to think about this. So there's got to be more to this. And there is, in fact, people age 55 plus, own more than half of the homes in the US. Did you know that? All right? Well, if we pull back from boomers, and let's just take a look at all homeowners of every age, people are staying in their homes longer, whether they're age 30 or 50 or 80, Americans now stay in the same home about 12 years. That is twice as long as 2005 Well, what that means is that homes don't come onto the market and people cannot buy what's not for sale. And then, of course, you've got the well documented interest rate lock in effect. That's a contributor here to people of all ages with 4% mortgages, they are reluctant to sell. And now what we're talking about here are demographics. Remember that quote, demography is destiny, the three word quote from 1800s era French philosopher Auguste Comte, and that's because it's completely predictable. If you're 32 years old today, in 10 years, you'll be 42 totally predictable. All right, if demographics could possibly crash housing crisis, let's step back and see what's going on with overall US, population growth. You know what? It just grew at its fastest rate since 2001 about a full 1% growth last year, yeah, we broke the 340 million population mark for the first time ever. And now, what about the portion that our immigrants, and what if a substantial amount of them get deported? I mean, after Trump settled into the White House for his second term, deportations began almost immediately. Is there enough population growth to buy from the boomers that do sell their homes? Well, if mortgage rates come down into the low fives, then maybe more boomers will sell and bring some more resale inventory onto the market. See, you need a good chunk, though, of buyers to come in from somewhere in order to support future housing prices. Well, where are those buyers going to be? Well, some people still don't realize that the largest generation in American history is, in fact, not baby boomers, it's millennials. They became the biggest group more than five years ago. In fact, Statista tells us that Gen Z isn't far behind them either. Yeah, Gen Z is almost as big as millennials as a group coming right behind them. And of course, this varies a little bit. Demographers parse the generations somewhat differently, but here's what the rise of the biggest generation means, millennials. They're aged 29 to 44 now, and there are over 70 million of them, and then almost as big the next group right behind them, Gen Z. They're ages 13 to 28 they alone number about 70 million themselves, even if you just completely leave the surge in immigration out of the picture and all the additional housing demand that immigration brings. So we're mainly just looking at the domestic side alone here. So. What's happened is that there were 4 million plus births per year from 1990 to 2010 providing a tailwind for housing demand through 2035, 2045, or later. Yeah, we had more births during many of those years than we did in the peak of the baby boom, which was 1957 like I've mentioned on the show before, the average age of a f

    51 min
  2. Investor Insights: Amenities That Drive Big Rental Profits

    FEB 10

    Investor Insights: Amenities That Drive Big Rental Profits

    Keith shares the top amenities tenants want in rental units, based on a survey by GreyStar with over 90,000 responses. He’s joined by long-time friends of the show, Terry and Liz to discuss investment strategies, emphasizing the importance of buying properties in the "sweet spot" and the benefits of allowing pets, which can lead to longer tenant stays.  They also touch on:  Trade-offs Between Buying Multiple Cheap Properties vs. One Expensive Property Quality of Properties and Tenant Demographics Screening Tenants and Handling Pets New Construction vs. Renovated Properties Investor Life Cycle and Exit Strategies Resources: Visit MidSouthHomeBuyers.com and explore their investment opportunities. Show Notes: GetRichEducation.com/540 GRE Free Investment Coaching:GREmarketplace.com/Coach For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  You get paid first: Text FAMILY to 66866 Will you please leave a review for the show? I’d be grateful. Search “how to leave an Apple Podcasts review”  For advertising inquiries, visit: GetRichEducation.com/ad Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE’ to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript:   Automatically Transcribed With Otter.ai    Keith Weinhold  0:01   Welcome to GRE! I'm your host, Keith Weinhold. What are the features that tenants want in their rental units today, and what amenities are most profitable for real estate investors? Bedroom, count, bathroom, count, cover, parking, pet policy and more, what matters what doesn't, and how do you optimize operations to maximize your profit? It's a conversation with me and two terrific real estate pro guests today on get rich education.    Speaker 1  0:31   Since 2014 the powerful get rich education podcast has created more passive income for people than nearly any other show in the world. This show teaches you how to earn strong returns from passive real estate investing in the best markets without losing your time being a flipper or landlord. Show Host Keith Weinhold writes for both Forbes and Rich Dad advisors, who delivers a new show every week since 2014 there's been millions of listener downloads of 188 world nations. He has a list show guests and key top selling personal finance author Robert Kiyosaki, get rich education can be heard on every podcast platform, plus it has its own dedicated Apple and Android listener phone apps build wealth on the go with the get rich education podcast. Sign up now for the get rich education podcast or visit get rich education.com   Corey Coates  1:17   You're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education.   Keith Weinhold  1:33   Welcome to GRE from Tacoma, Washington to the took pony Palmyra bridge spanning the Delaware out of Philadelphia and across 188 nations worldwide. I'm Keith Weinhold, and this is get rich education, the voice of real estate investing Since 2014 I'm grateful for your faithful listenership. If you're new around here, join in at GRE we do this one big headline show every week, never more, never fewer, and truly, every single week for more than 10 years now, let's talk about amenities that tenants want in apartments today, before we pivot to discussing properties in general and single family homes in our conversation coming shortly. Now, you might have heard of GrayStar before they are international real estate developers and managers, well, they received more than 90,000 survey responses from apartment tenants on their most preferred features and amenities. So we've got a good sample size here, and Gray star compiled the top 20. Let's just hit the top five. This is important, because your tenant is your customer, and when you serve them, you're not only making them happy, you yourself are positioned to be more profitable long term. Here we go. The number one preferred feature is, do you have any guess what tenants want? It's the walk in closet. 51% of apartment tenants said that they are interested in this feature, and 37% would not rent an apartment without it. On average, they're willing to pay a $75 a month premium, and the survey shows that this is particularly important in Dallas and Miami, where over half said that they would not rent without it. The second most important amenity to apartment tenants is large windows with abundant natural light. 56% that they're interested in this feature. 31% would not rent an apartment without it, and on average, they're willing to pay an $80 a month premium for the large windows. When you think about how more tenants work from home today than five years ago? Well, big windows make more sense. Third most important is fresh air ventilation. 69% said that they're interested in it, and on average, they're willing to pay a $79 per month premium. The highest demand for fresh air ventilation is in Seattle, San Francisco and San Jose. We're talking about the top five amenities that apartment tenants want today in order, the fourth most important one is covered parking or a garage. 52% said that they're interested in this feature. Fully a third would not rent an apartment without it, and on average, they're willing to pay a $75 a month premium, and this is most important in urban areas with a covered parking or garage, where 42% will not rent a unit without it, in those urban areas. And then the fifth one is high efficiency appliances, 71% said they're interested in this feature. On average, they're willing to pay a $79 a month premium, and this, this high efficiency appliance thing, is more important for the high income tenant segment. So there they are, the top five features and amenities that. Apartment tenants want today. So to review, in order, it's a walk in closet, big windows, fresh air, ventilation, covered parking or a garage, and finally, high efficiency appliances. And listen in as I'll have a robust discussion with two season real estate pros. We're going to go beyond apartments about the features that tenants and real estate investors alike want today, and at times, they will talk about their home markets of Memphis, Tennessee and Little Rock, Arkansas, which are some of the most investor advantaged markets anywhere. And you'll have to calibrate some of these numbers to your market, because in these places, the typical single family rental purchase is just 100 to 200k and rent is between$900 and 1600 and at other times, we will talk more nationally and globally.    Hey, well, I'd like to welcome in long time friends of the show, with the emphasis on long time since they were first here with us, more than 10 years ago on episode nine in 2014 those ever steady quality property providers from Memphis, Tennessee, mid south homebuyers, it's the return of their principal, Terry Kerr and investor relations lead, Liz Nalen, Terry and Liz, welcome back.   Terry Kerr  6:25   Thank you, Keith. It's great to be here. Thanks so much, Keith, great to be back.    Keith Weinhold  6:28   Yes, it's beginning to feel like a high school class reunion or something. I anticipate my high school class reunions just like I anticipate our discussion today. Let's talk about your individual takes on investment philosophy, common investor mistakes, and is some investor conventional wisdom true, or is it not? Because there's probably some of that that we have to debunk, I think a common one. And I know you get that question in there from investors and our listeners, you had that conversation it was it better to buy two cheap properties or one expensive property talk to us about some of those trade offs.   Liz Nowlin  7:07    It's such an interesting thing, and there's so many factors you can look at. I broke it down for myself personally. Probably 12 years ago, I was asking myself that question as an investor and I ran 2 $50,000 houses, I'm dating myself against $100,000 house, and even when I manipulated the appreciation for the $100,000 house at the higher rate. And actually, we've been talking about investor conventional wisdom, and that is actually a piece of conventional wisdom I've not seen hold true as much, but that a higher end neighborhood is going to appreciate a more rapid pace than a more blue collar neighborhood. So that, as a side note, is a piece of conventional wisdom that I've seen a bit debunked, but it really ramping up the appreciation on the $100,000 house. I think I put it at reselling at like 180 or 190 down the line, and I put my $50,000 houses at maybe 90. You know, not as aggressive for me. Two houses beat one, every kind of way that I shook it out. And of course, the 50,000s had lower individual cash flows, but still, I think matching or higher than the 100. And the one thing I'm not sure that I put in there is two water heaters versus one water heater, two furnaces versus one, but running the same maintenance in general for them. Terry, what do you think   Terry Kerr  8:32   I started out buying houses a little bit lower than I should and what I mean a little bit lower like and a little bit lower quality neighborhoods, and quickly learned that you can't buy too low, you know, you got to buy them, you know, in the sweet spot. So I bought in the A class areas. I bought in the areas that were a little too low, and then found the sweet spot. And then within the sweet spot, I've got a bunch of houses that are in the mid range where we typically operate, and personally, I've also got a bunch of duplexes. I like duplexes. So whether that's duplexes or a little

    44 min
  3. Short-Term Rentals, Mid-Term Rentals, and Hotel Investing with Robert Helms

    FEB 3

    Short-Term Rentals, Mid-Term Rentals, and Hotel Investing with Robert Helms

    Professional real estate investor, author and host of “The Real Estate Guys” Radio Show, Robert Helms joins us to discuss the nuances of mid-term, short-term rentals, and hotel real estate investing.  They highlight the impact of interest rates on single-family home affordability and the role of institutional investors.  Mid-term rentals cater to travelers like traveling nurses and digital nomads, offering higher monthly rents. Short-term rentals face challenges due to oversupply, but can be profitable with strategic planning. Hotels offer consistent experiences, with key metrics like occupancy and ADR.  Resources: Join Keith and other faculty experts at the Investor Summit at Sea, a unique networking and learning event for real estate investors. Let the event organizers know if you want to have dinner with Keith during the event. Show Notes: GetRichEducation.com/539 GRE Free Investment Coaching:GREmarketplace.com/Coach For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  You get paid first: Text FAMILY to 66866 Will you please leave a review for the show? I’d be grateful. Search “how to leave an Apple Podcasts review”  For advertising inquiries, visit: GetRichEducation.com/ad Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE’ to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript:   Automatically Transcribed With Otter.ai    Keith Weinhold  0:01   welcome to GRE I'm your host, Keith Weinhold, surprising facts about the institutional ownership share of the rental market. Then learn from a great guest tonight about how the midterm and short term rental models work and hotel real estate investing. Then you are invited to join us both on the most special real estate event that I've ever been a part of, and I'm going to return to it today on get rich education.   Since 2014 the powerful get rich education podcast has created more passive income for people than nearly any other show in the world. This show teaches you how to earn strong returns from passive real estate investing in the best markets without losing your time being the flipper or landlord. Show Host Keith Weinhold writes for both Forbes and Rich Dad advisors, and delivers a new show every week since 2014 there's been millions of listener downloads of 188 world nations. He has a list show guests include top selling personal finance author Robert Kiyosaki. Get rich education can be heard on every podcast platform, plus it has its own dedicated Apple and Android listener phone apps build wealth on the go with the get rich education podcast. Sign up now for the get rich education podcast or visit get rich education.com   Corey Coates  1:17   You're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education.   Keith Weinhold  1:33   Welcome to GRE from London, UK to London, Ontario and across 188 nations worldwide. I'm Keith weinholden, you are inside this week's episode of Get rich education, where we aren't day trading, we are decade trading with gradual patient wealth accumulation through income properties, yet with a path that lets you live the good life of options and freedom when you're still young enough to enjoy it. Now, the shorter the period of time that your guest or your tenant stays at your place, the more that the word hospitality gets involved. Hospitality, that word has little to do with hospitals. It almost means the opposite. Hospitality means that you're now giving a warm reception to or entertaining guests or tenants. Well, that's something that you rarely do at a long term rental, but you do if you're a hotel real estate investor for sure, or maybe even a little in a short term rental, then you're in hospitality like valet parking, having a restaurant, a pool with a swim up bar, a gym, a concierge desk, or even having a lobby with travel desks of various tour companies. Right there. That's hospitality, and today as we discuss mid term rentals, then short term rentals, then hotel real estate investing, think about how the level of hospitality that you give increases as the duration of a guest or tenant stay decreases. Hospitality is one reason that long term rental rates for durations of, say, a year or more, well, they had the lowest daily rates and the least hospitality. And hotels with, say, a two night stay, have the highest daily rates and the most hospitality.    This week's show is presented by ridge lending group and freedom family investments. I mean Ridge is where I get all of my investment property loans, and where I do all of my refinancings. And perhaps you should, too, because they specialize in working with investor borrowers there, so they know just what you need and what you don't Ridge lending group.com, and then freedom family investments, that's where you can make a private money loan and get a higher yield than you can with a high yield savings account. That's where I invest a share of my own liquid funds for a passive 8% return, 10% return. And now this is new. They've got offerings at 12% or more. You can learn more by texting family to 66866, next, we discuss mid term rentals, short term rentals and hotel real estate investing.   This week, I'd like to welcome in a good long time real estate friend. He's been on the show here with you and I before. Besides being a deeply experienced real estate investor, he also hosts the terrific real estate guys radio show, which was a substantial influence on the launch of GRE more than 10 years ago. I mean, how many times have I suggested to you over the years that you give his show a listen? He also speaks with some of the best pipes in the industry. Hey, it's great to have back on the show this week, the incomparable Robert Helms.   Robert Helms  5:07   Hey, Keith, so good to see you. Thanks for having me back.   Keith Weinhold  5:11   Let me share with you. Robert is on a very short exclusive list of people that I credit for being where I am today, from how to host a professional show to being a Go Giver and Robert before we discuss mid and short term rentals in the long term rental world generally, just what's important to know in today's residential real estate market, you can take that anywhere you like.   Robert Helms  5:38   Well, I think the big picture has been all about the loans and the interest rates, right? We saw rates go up, not only a lot, but quickly, and then kind of come back down a bit. Now they're headed back up, and that just has a big effect on single family homes, primarily to folks who are living in the homes, because they'll make that decision based on the affordability of their mortgage payment and the rest of the costs investors Well, you know, we think a little differently. We're not limited by a specific interest rate will pay? If I can make 9% would I pay 6% sure, if I can make 9% would I pay 7% well, I might, and so on. So I think that that's something to watch this year. For sure. There's lots of reasons to expect that we're not going to see interest rates get back down into the twos and threes and fours like we wish they would stay. Probably shouldn't happen in the first place, but you and I took advantage of it, and lots of your listeners did as well. But I think that's kind of a big picture thing. And then the other part of it is, you know, the inventory. So when people have this locked in effect, which really doesn't have anything to do with their needs or wants, they have a new job or they have another child and they want to move to a couple of notches up in a neighborhood, they don't want to get rid of their 3.12% loan and have to buy another property with 7% so we see less people moving, therefore less inventory, total inventory now somewhere just around 700,000 or below, and that's lower than it's been for the average of the last 10 years. For sure, I think that has an effect, less people are moving because of the interest rates. But at the same time, you know, there are houses that trade every single day. People do have to move. They have life situations and so forth. And then real estate investors, of course, we just look for opportunity. If we can make a spread and we can be in a property long term where the tenant pays down our mortgage and not us, well, then we're interested at almost any interest rate.   Keith Weinhold  7:44    Yes, that interest rate lock in effect will persist another year. That continues to get diluted over time. Of course, though you and I both know that mortgage rates are still below their historic rate, but because of the recency bias, no one's really acting that way. By the way, the first ever rental property I bought had a six in three eights percent mortgage rate 20 years ago, and people were raving about what an incredibly low rate that was back then. But this constrains supply. And another thing that constrains available supply in today's market is more institutional players own rental property today we're talking about outfits like invitation homes and even the California State Teachers Retirement System. But one thing a lot of people don't seem to realize is that institutions like this own less than 1% of single family homes in the United States, and that's all institutions combined. And now if you just isolate that to single family rental properties, they still only own two to 3% so where we have this period of low supply and low affordability, you know, Robert, I think institutions, in a lot of these media headlines, they tend to get scapegoated or being a boogeyman. Oh, all these

    46 min
  4. How to Begin in Real Estate, The Insane Canadian Housing Crisis

    JAN 27

    How to Begin in Real Estate, The Insane Canadian Housing Crisis

    Keith answers listener questions about getting started in real estate investing with limited funds and how to determine the true appreciation of a property against inflation. He also discusses: The impact of the LA wildfires on housing needs and some landlords raising rents excessively. Economic and housing challenges facing Canada, including high inflation and unaffordable home prices. And highlights the views of likely future Canadian Prime Minister Pierre Poilievre on addressing these issues. GRE Free Investment Coaching:GREmarketplace.com/Coach For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com Show Notes: GetRichEducation.com/538 Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  You get paid first: Text FAMILY to 66866 Will you please leave a review for the show? I’d be grateful. Search “how to leave an Apple Podcasts review”  For advertising inquiries, visit: GetRichEducation.com/ad Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE’ to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript:   Automatically Transcribed With Otter.ai    Keith Weinhold  0:01   welcome to GRE. I'm your host. Keith Weinhold, I answer three of your listener questions, then learn why LA area landlords got a bad name during this month's awful Southern California wildfires. Finally, why Canadians cannot buy houses anymore, and what lessons you can learn from Canada's real estate mistakes and the abject lunacy there today on get rich education.   Unknown Speaker  0:30   Since 2014 the powerful get rich education podcast has created more passive income for people than nearly any other show in the world. This show teaches you how to earn strong returns from passive real estate investing in the best markets without losing your time being the flipper or landlord. Show Host Keith Weinhold writes for both Forbes and Rich Dad advisors and delivers a new show every week since 2014 there's been millions of listener downloads of 188 world nations. He has a list show guests and key top selling personal finance author Robert Kiyosaki, get rich education can be heard on every podcast platform, plus it has its own dedicated Apple and Android listener phone apps build wealth on the go with the get rich education podcast. Sign up now for the get rich education podcast or visit get rich education.com   Unknown Speaker  1:16   You're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education.   Keith Weinhold  1:32   Welcome to GRE from Gatlinburg, Tennessee to Pittsburgh, Pennsylvania and across 188 nations worldwide. I'm Keith Weinhold, and you are inside this week's installment of the program known as get rich education, I'm grateful that you're here, but you're not here for me. You are here for you. So let's talk about you and some of the listener questions that you wrote into the show about and as usual, whenever I have a batch of listener questions, I answer the beginner level questions first and then move on to more advanced questions. The first one comes from Jeanette in Seaford, Delaware. Jeanette asks, I only have a little money to invest in real estate. How do I get started with just a small amount of money. All right, Jeanette, well, first I would talk to a lender. You have to talk to a mortgage specialist or a loan officer to find out what you qualify for. You're basically getting them to punch holes into your financial picture. And then that way, Jeanette, you will know what holes to go, mend, so your loan officer is essentially giving you a free troubleshooting session. Now, our investment coaches here at GRE help you with some of that, but GRE doesn't originate loans, so you want to get with someone like a ridge lending group for help. And now, what are some of the holes that a mortgage lender might poke into your finances? Jeanette, well, getting your credit score up and they'll help you with that strategy. Or you simply need more dollars in savings, in what your mortgage loan underwriter calls reserves, or you might need to establish a two year job history, or you have to say, Pay off your car loan in order to get your debt to income ratio lower, or whatever it is. And since at GRE marketplace, the least expensive income property is probably about $120,000right now, a number that keeps going up with inflation. But what you would need is 23 to 25% of that between your down payment and closing costs, all right? Jeanette, so then about 28 to 30k that is the minimum lump of cash that you'll need to buy a property that is already fixed up and ready for a tenant, and that is a great way to start in real estate investing if you want to maintain your standard of living, okay, that is therefore the lowest entry point that you can do that. But if you're temporarily willing to let your quality of life slide for a couple years and maybe live communally. You can put as little as 3% down on a primary residence and then rent out the other rooms. Okay, that's the house hacking model, but depending on your setup, you know, maybe you're sharing a kitchen with roommates or suitemates, and therefore that temporary loss in quality of life. Maybe you can even Airbnb at a short term rental, in which case you will be buying the furniture. However, now with a 3% down payment on an owner occupied house, hack like that, you're probably going to have to pay a PMI premium, a private mortgage insurance premium of a few $100 per month. But still, this does get you in with very little money, since that's what you're asking about Jeanette. And finally, the third thing I'll bring up here is that you can get a combination of maintaining your standard of living and putting a small down payment on a property by using an FHA loan and three and a half percent down. And you can do that with a single family home, duplex, triplex or four Plex, living in one unit and renting out the others. So yes, you get both this way, but I will not go into the details on the FHA, because I have described that in detail on other episodes since it's how I started out myself. But there are a number of options right there for you to inquire about Jeanette, all starting with an investment centric mortgage lender like Ridgelendinggroup.com.     The next question comes from Jared in Pocatello, Idaho. Jared asks Keith, in the past year, my duplex in Pocatello went up in value 5% from 400k to 420k. How do I know how much of that 5% is true appreciation, and what portion of the 5% is from inflation? Oh, that is such a devastatingly cool question Jared, and that's exactly what I thought when I saw that question come in. Okay, so basically, Jared is asking, say, in this 5% price increase is 3% from inflation and 2% from appreciation, for example, or like, what is the breakout of those two components of the price change? And a lot of people don't understand the difference, and even know enough to ask a question this good. So props to you there. Jared. One thing you cannot do is just look at CPI inflation over the last year for the US, which is 2.9% and then say, Oh, well, then I guess the other 2.1% must be appreciation. Therefore, no, you can't really do that. There's more to it than that, for a lot of reasons. I mean consumer price inflation, like on a pound of ground beef at the supermarket, that is different from asset price inflation, and there are a lot of other reasons too. Appreciation is distinctly different from inflation, because the value of your property increasing 5% that has to do with the attractiveness of your property to the marketplace. Now there are attributes with appreciation, like proximity to high paying jobs, proximity to highways and shopping in desirable schools, which are basically those axiomatic Location, location, location qualities. Now I'm going to assume that you did not make an improvement or a renovation to the property Jared, because obviously that would hike up the value. Now other appreciation attributes that are distinctly different from inflation are things like population growth and wage growth in your area, what can really pump up appreciation is if the remaining availability of developable land starts shrinking and shriveling up in a desirable location. Contrary to popular belief, mortgage rates have little to do with appreciation. We can leave that out of this discussion. Now, how this is different from inflation is that inflation is not about the intrinsic value. Rather, inflation is the price of the home increasing because the currency is worth less. Now I hope that you find that explanation satisfying Jared, but what is dissatisfying is that it's actually hard to pin down a number and say, was this two and a half percent appreciation and two and a half percent inflation, or any other combination? And that's because inflation itself is practically impossible to accurately measure, and a lot of that has to do with an inflationary basket of goods that is just exceedingly difficult to adjust for attributes like quality and utility and substitution So Jerry did is likely that your duplexes 5% value increase is an amalgamation of both appreciation and inflation, that part I can confirm, but the exact breakdown for each is virtually incalculable, super insightful question there Jared.     The third and final of our three listener questions to get the show started today, and then I'll get into landlords in the LA wildfires and Canada versus us real estate. The final question today is from Jeter in Roseville, California. I know where Roseville is. It's just northeast of Sacramento, and I'm not sure if Jeter j, e t, e r is y

    45 min
  5. How to Increase Your Real Estate ROI with a Cost Segregation

    JAN 20

    How to Increase Your Real Estate ROI with a Cost Segregation

    Cost segregation studies can significantly reduce taxable income by accelerating depreciation on rental properties. They reclassify certain property components, such as flooring and lighting, to shorter depreciation schedules (5, 7, or 15 years) instead of the standard 27.5 years for residential or 39 years for commercial properties.  This method can result in substantial tax savings. For example, a $510,000 duplex study yielded $131,000 in accelerated depreciation, potentially saving $40,000 in taxes at a 30% rate.  Although the percentage has been stepping down, it may be reinstated to 100% under the Trump administration. Initiate a cost segregation study estimate here to determine the potential tax savings.  GRE Free Investment Coaching: GREmarketplace.com/Coach For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com Show Notes: GetRichEducation.com/537 Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  You get paid first: Text FAMILY to 66866 Will you please leave a review for the show? I’d be grateful. Search “how to leave an Apple Podcasts review”  For advertising inquiries, visit: GetRichEducation.com/ad Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE’ to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript:   Automatically Transcribed With Otter.ai    Keith Weinhold  0:01   Welcome to GRE. I'm your host. Keith Weinhold, when you reduce your taxable income, that's a zero risk return on your investment. You'll learn how to do that today with any rental real estate that you own through what's known as a cost segregation study, even those without a giant portfolio can save 10s or hundreds of 1000s of dollars. An expert guests and I break it down with real life examples, see just how it can help you today. On get rich education   Speaker 1  0:34   since 2014 the powerful get rich education podcast has created more passive income for people than nearly any other show in the world. This show teaches you how to earn strong returns from passive real estate investing in the best markets without losing your time being a flipper or landlord. Show Host Keith Weinhold writes for both Forbes and Rich Dad advisors, and delivers a new show every week since 2014 there's been millions of listener downloads of 188 world nations. He has a list show, guess who? Top Selling personal finance author Robert Kiyosaki, get rich education can be heard on every podcast platform, plus it has its own dedicated Apple and Android listener phone apps build wealth on the go with the get rich education podcast. Sign up now for the get rich education podcast, or visit get rich education.com   Corey Coates  1:19   You're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education.   Keith Weinhold  1:35   Welcome to GRE from Berlin, Pennsylvania to Berlin, Germany and across 188 nations worldwide. I'm Keith Weinhold. You're listening to get rich education. And one way that I like to be positioned in real estate is the sense that I own it directly, yet I use a property manager so that I'm shielded from the day to day responsibility. I care, but I can still live my life now you might favor direct ownership like I do, yet choose to self manage your property instead. That's a viable way to do it. Self management is how I started out, but however you handle the management when you own directly, you can alter your effective post tax rate of return on your investment, and that's what we're talking about doing today with a cost segregation what this effectively does is increase your tax depreciation benefit. Though depreciation sounds bad as a word in the real estate world, even without spending any of your own money, it's still classified by the tax code as an expense that you can deduct from your taxable income. You don't want to reduce your income, only the taxable income reducing the portion that the IRS can get a piece of. Now, unless it's a condo, your rental property probably includes both a structure called the improvement and also the land. Now your improvement has components that wear out, and even the IRS knows that the land does not wear out yet. There are items on the land that you can get this accelerated depreciation on through a cost segregation, like fencing and lighting and carports. A lot of people don't know that, so there is therefore a land improvement segregation often on a 15 year schedule, but it's even more lucrative to get cost segregations applied to things inside your building or home that wear out faster, like countertops or flooring, as we'll see today, on shorter schedules, like five or seven years. Said another way what you're doing is that you are shielding more of your taxable income. And I'm going to ask today's Cost Segregation expert guest for an example near the start of our conversation, so he'll give us some numbers. And you want to listen to that part closely, and you might find yourself skipping back to re listen to some parts today as we give real life examples on how a cost seg works. Now, today is a Presidential Inauguration Day, so it's appropriate that we cover this today, because Trump is widely expected to reset 100% bonus depreciation, which, as you'll see, factors into our discussion today. And frequent GRE guest Tom wheelwright thinks that this is going to happen too this 100% bonus depreciation. What that means that, for example, all those land improvements that I mentioned on a 15 year depreciation schedule, where you could front load it and get it all in year one of your ownership and those components indoors. On shorter depreciation schedules, like five to seven years, you can get all those write offs in year one without waiting five to seven years. So that's. The sweetener that 100% bonus depreciation is, if Trump indeed brings that back, and you might say, wait a second, this sounds a little too good to be true. I mean, getting these amounts, you'll see they can be over 100k in tax savings, even for a small investor, that you can reduce your taxable income by Well, you know, it is just a little too good to be true, because when you sell the property down the road, you have to pay back 25% of what you wrote off this way in what's known as a depreciation recapture tax. So it's still worth doing. In a lot of cases, you would keep 75% of your benefit then, unless you do a tax deferred exchange on your sale, and then you could defer that 25% depreciation recapture tax. So yes, today's episode is deeper than most. And you know, being a Presidential Inauguration Day, and knowing that I like to drop a little levity here before we delve into deep topics, what does the outgoing presidential administration have to say about cost? Segregations get hot.   Speaker 2  6:13    I got Lana. I got hairy legs that turn that turnblonde in the sun, and the kids used to come up and reach in the pool and rub my leg down so it was trained, and then watch the hair come back up again.   Keith Weinhold  6:32   I don't know what just happened there. Let me just give him another chance to clear things up. I mean, you really can do a cost segregation,    Speaker 2  6:41   we have this notion that somehow, if you're poor, you cannot do it. Poor kids are just as bright and just as tall as white kids.    Keith Weinhold  6:51   Gosh, oh dear, I don't I don't know where to go with that. And hey, if you're a new listener, you know, over time, we poke a little fun at every president. We do with Trump as well. We do with Jerome Powell. No one is immune around here. Some people, hey, they might find it funny that a former real estate investor President like Trump wants to expand America's real estate portfolio by taking Canada and Greenland in the Panama Canal back too. Politics matter, but this is not a politically partisan platform in any way. What's politically partisan? It's saying that the economy is like absolutely awful, but then as soon as your guy gets sworn in, one hour later, you're willing to call that same economy. Now suddenly, a great economy. No, a national economy does not change in one hour. So free thinking and thinking for yourself beats polarizing political partisanship. That's a way it's been around here from day one. Yeah, a little levity, a good knee slapper now and then knee slapper coming up in future weeks on the show here, the real estate guys radio show host and a friend, Robert Helms, will be here to update us on what's happening in the short term rental market, mid term rental market and more. We'll also announce a big collaboration that he and I are going to do together this year, and you'll be invited to join us today, let's discuss cost segregation.   You can take your tax burden and put a huge dent in it by accelerating your real estate depreciation deduction with a cost segregation This could save you 1000s of dollars every year or more depending on the size of your real estate portfolio. We're talking about how to specifically do this with a cost seg expert. He's been a real estate investor for over 20 years. He builds new rentals to hold, and he and his son do that together. In fact, you're currently building a 24 unit complex now. But the reason he's here is because he started a specific cost segregation company in 2012 and he completes over 100 cost seg studies every year. So he's really the guy to talk to. Steve, welcome on to the show. Thanks for having me. I appreciate it. It's great to have an expert like you here and Steve, I think a lot of real estate investors, they're familiar with tax depreciation. That's where for rent

    39 min
  6. Why the Housing Crisis is Pushing Homelessness to Catastrophic Heights

    JAN 13

    Why the Housing Crisis is Pushing Homelessness to Catastrophic Heights

    Discover the latest global real estate trends and untapped investment opportunities. Keith uncovers high-yield new build rental properties that can deliver impressive returns, even in today's challenging market. Don't miss your chance to build lasting wealth through strategic real estate investing. Tune in now to get the insider insights you need to get ahead. The podcast dives into dramatic global real estate trends, with home prices skyrocketing over 10% in countries like Colombia and the Netherlands. It also examines the alarming rise in U.S. homelessness, driven by factors like housing shortages and inflation. To counter these challenges, the show spotlights compelling new-build rental properties that could offer attractive returns for passive investors. GRE Free Investment Coaching: GREmarketplace.com/Coach For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com Show Notes: GetRichEducation.com/536 Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  You get paid first: Text FAMILY to 66866 Will you please leave a review for the show? I’d be grateful. Search “how to leave an Apple Podcasts review”  For advertising inquiries, visit: GetRichEducation.com/ad Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE’ to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript:   Automatically Transcribed With Otter.ai    Keith Weinhold  0:02   Welcome to GRE. I'm your host. Keith Weinhold, we look at global home price change, the asset class rundown, then the homelessness crisis is mega bad. It just reached new, unprecedented levels, and real estate and inflation has a lot to do with the homelessness surge today on get rich education.   Speaker 1  0:28   Since 2014 the powerful get rich education podcast has created more passive income for people than nearly any other show in the world. This show teaches you how to earn strong returns from passive real estate investing in the best markets without losing your time being a flipper or landlord. Show Host Keith Weinhold writes for both Forbes and Rich Dad advisors, who delivers a new show every week since 2014 there's been millions of listener downloads of 188 world nations. He has a list show. Guess who? Top Selling personal finance author Robert Kiyosaki, get rich education can be heard on every podcast platform, plus it has its own dedicated Apple and Android listener phone apps build wealth on the go with the get rich education podcast. Sign up now for the get rich education podcast or visit get rich education.com   Corey Coates  1:13   You're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education.   Keith Weinhold  1:29   Welcome to GRE from Kent Washington to Tashkent, Uzbekistan and across 188 nations worldwide. I'm Keith Weinhold, and you are listening to get rich education. One reason for a not just national, but global, rise in real estate prices is that you can't fake it. Real property is not a derivative, yeah, you can't fake it. So this really emphasizes the word real in real estate. It's not a crypto within infinite supply. It's not an NFT. You can't fake construction. You can't fake real materials put into property, from concrete to kitchen cabinets. So in the year recently ended, as we catch up to global home prices and select nations, per Fitch Ratings. Let's do that because it was not just a US centric thing. In the Netherlands, the home price change last year was 13% you had that much appreciation in the Netherlands. Colombia, 10% Mexico up 9.3% Brazil had 8% home price appreciation. Australia, 5.2% Australia has just seen year over year home price appreciation for such a long time. The UK had 5% appreciation. Spain, 5% as well. The USA, 4% just like I predicted at the end of 2023 for 2024 It did indeed come in at 4% Canada also had exactly 4% home price appreciation last year, just like the USA did. Denmark 3% Italy and Japan each at two and a half percent. Germany home prices were up just one and a half percent. And France had home prices that fell 3% China had home prices that fell 7.8% that supply versus demand thing in China, where they massively overbuilt, that's why home prices are down there. And as I unveil the depths of the USS homelessness crisis later here on the show, you will see that, yeah, those appreciated real estate prices, like I just mentioned, they have a lot to do with it. Now you might think of the youngest generation, the generation after Gen Z, as generation alpha, and that is true. However, they are no longer the youngest generation, because the babies born on New Year's Day of this year not only got to be featured in feel good local news stories. You know what? They are, also the first members of generation, beta, yeah, which will include children born from 2025 through 2039 so that is the future and the future demographic that's going to demand housing. But first of all, let's look at a year that was yes for years here on the show, we have our asset class rundown shortly after most quarters end, and certainly after a year ends. And today is no different, and this is because at times you've got to compare real estate with the other investment options that are out there. We now have music to play for our asset class rundown feature each time for today and. Future shows. And I know the GRE sound engineer has got to like this. He's also a DJ dropit, Vedrand. Here is GRE 's asset class rundown for the 12 months of last year, residential real estate values were up 4% per the NARS. Single Family existing home price, like I said earlier, single family rents up about 2% per core logic, apartment rents pretty flat, down six tenths of 1% for the year per apartment list, office buildings were down in value 9% the 30 year fixed rate mortgage. It started last year at 6.6% everyone, I mean, everyone, thought that they would go lower, but nope, they ended at 6.9% a little higher. That's per Freddie Mac survey. The s5&p 100 index was up over 23% topping out at 6100 last year. That is the first time the s&p has been up 20% plus in back to back years since 1998 and the s&p is meant to represent 500 companies, but it has become so concentrated due to the rise of the Magnificent Seven stocks that its effective diversification is less than 60 stocks. Morgan Stanley just announced that they expect the SP500, 100 returns to be flat for the next decade due to lofty valuations. Do you know that since 2000 gold has outperformed the s&p last year, gold shot up from about $2,000 peaked near $2,800 and then ended up about 30% for last year, the yield on the 10 year T note was up 63 basis points last year, basically rising from four up to 4.6% by year end. What that means is that that signals higher inflation expectations. Bitcoin up an astounding 111% to end last year around 95k and it topped out at an all time high of 108k oil up just 2% to 72 bucks and a wild card for you. Through October, Bible sales were up 22% compared to the same period versus the previous year. That is GRE 's asset class rundown. It was.    This is get rich education. Let's drop back and do some learning before I update you on housing and the homelessness crisis. Now, a lot of Americans don't really know history that well, and not very many have a good financial education either. But you know, it is quite possible that even the next person you spot in a Trader Joe's aisle has heard of Adam Smith in his landmark 1776 book The Wealth of Nations. Did you know that Adam Smith is the one credited with actually inventing the very concept of supply and demand? Yeah, Adam Smith, a Scotsman is credited with that. He is known as the father of modern economics. You might have already known that. Well, of course, supply versus demand seems to be a more relevant concept than usual. Here with the housing shortage crisis, Adam Smith, he proposed the idea of what he called an invisible hand, that is the tendency of free markets to regulate themselves using competition, supply and demand and self interest, a Darwinian sort of struggle. Really, did you know that he also created the concept of gross domestic product? Yeah, prior to Adam Smith's work, most people considered a nation's wealth based on the amount of gold and silver reserves that they had stored. But Adam Smith said no, it's more about productivity quantified in this GDP in a lot of his work. It also discusses the evolution of human society from a hunter stage with no property rights and no fixed residences, to nomadic agriculture with shifting residences. And then the next stage after that is a feudal society, where laws and property rights are established to protect privileged classes. And finally, that modern society is characterized by laissez faire or free markets, so a good chunk of Adam Smith's work revolved around real estate. Now, the history of economics like that is a phrase that sounds boring. Maybe it is to some people, but as an investor, the least that you should know about Adam Smith's landmark book The Wealth of Nations from the year 1776 is that to review, he invented the supply demand concept. He created the GDP concept, and he championed free markets. That's something you're going to appreciate knowing in your investor life. And also supply demand, as I discussed that in the homelessness problem shortly.    we are a real estate show, and, you know, I just don't hear other real estate shows talk about, well, the unfortunate, I guess, absence of real estate in an increasing number of people's lives now, even if you have a home, learn about how homelessness is gonna make your life worse,

    40 min
  7. Single-Family Rentals vs. Apartment Buildings

    JAN 6

    Single-Family Rentals vs. Apartment Buildings

    Keith discusses the pros and cons of investing in single-family rentals versus apartment buildings. He highlights that less than 10% of U.S. building materials are imported, reducing the impact of tariffs. Single-family rentals offer better tenant quality, lower vacancy rates, and higher appreciation potential. They also have lower financing costs and are more divisible.  Conversely, apartment buildings offer economies of scale and lower per-unit maintenance costs. He emphasizes the importance of owning more property, especially new-builds, which offer lower insurance premiums and attractive financing options Work with expert investment coaches to find the best off-market deals and maximize your returns.  GRE Free Investment Coaching: GREmarketplace.com/Coach For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com Show Notes: GetRichEducation.com/535 Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  You get paid first: Text FAMILY to 66866 Will you please leave a review for the show? I’d be grateful. Search “how to leave an Apple Podcasts review”  For advertising inquiries, visit: GetRichEducation.com/ad Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE’ to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript:   Automatically Transcribed With Otter.ai    Keith Weinhold  0:01   welcome to GRE. I'm your host. Keith Weinhold, talking about how most home building materials are US sourced and not affected by tariffs, the little understood pros and cons of investing in apartment buildings versus single family rental homes, then what really makes sense to invest in in this particular era and more today on Get Rich Education.   Speaker 1  0:28   since 2014 the powerful get rich education podcast has created more passive income for people than nearly any other show in the world. This show teaches you how to earn strong returns from passive real estate investing in the best markets without losing your time being a flipper or landlord. Show Host Keith Weinhold writes for both Forbes and Rich Dad advisors and delivers a new show every week since 2014 there's been millions of listener downloads of 188 world nations. He has a list show, guess who? Top Selling personal finance author Robert Kiyosaki, get rich education can be heard on every podcast platform, plus it has its own dedicated Apple and Android listener phone apps build wealth on the go with the get rich education podcast. Sign up now for the get rich education podcast or visit get rich education.com   Corey Coates  1:13   You're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education.   Keith Weinhold  1:29   Welcome GRE from Tallahassee, Florida to Waxahachie, Texas and across 188 nations worldwide. I'm Keith Weinhold, and you are inside, G, R, E, we are here for you every Monday, without fail, 52 weeks a year, and we have never replayed an old episode either, always original content. Thanks for being here, but you're not here for me. You are here for you as another year dawns before we get into the meaty real estate content of today's show, including single family rentals versus apartments. Take a moment to check in with your own goals. Maybe you think about that is just buying your first investment property, or maybe you own 83 rental units, and you're looking to get to 100 this year. But no matter really real estate is just the fuel for your goal. It's probably not the end goal itself is your goal to have the time freedom to watch all of your kids basketball games this year. What about beyond this year? Are you really dreaming big enough you've got to question yourself on that sometimes, for example, forget flying first class. What if you want to own your own private jet, like Taylor Swift's luxurious Dassault 7x jet for $54 million? how about real estate fueling a dream that's even bigger than that? Yet, last month, the Philadelphia Eagles received the NFL approval for the sale of an 8% interest of the team to two different family investors. Okay, do you find say that interesting owning part of a major pro sports team. And by the way, what would something like that look like for you? I mean, do you even have the headspace to conceive of such a thing? It's good to ask yourself questions like this. Sometimes that sale was based on a valuation of the team of up to $8.3 billion and yet, after all that, the Eagles owner Jeffrey Lurie, he still maintains complete control of the team. Okay, so if each of the two family investors got a 4% interest at this valuation, that is up to a $332 million investment for each family. Maybe that could be a Weinhold the family goal. We'll see about that one. And you know, when it comes to making yourself a bigger you and dreaming a bigger dream, I like to listen to what the doers say. I found it so interesting in a Jeff Bezos interview at the deal book Summit, Bezos said it's human nature to overestimate risk and underestimate opportunity. Bezos also said entrepreneurs would be well advised to try and bias against that piece of human nature, the risks are probably not as big as you perceive, and the opportunities may be bigger than you perceive. That's the end of what bezel said. I really think that that's spot on stuff. now two weeks ago, when I gave GREs national home price appreciation forecast for this year. You might remember that I said that potential Trump tariffs just don't matter as much as people think when it comes to real estate. And understanding more about why I say this, it can help you understand real estate materials and sourcing and home building in the United States, America's overwhelming majority of sourced building materials are not imported, so therefore something like a supply chain bottleneck that's more worth watching, really. It's a huge misunderstanding of the home building market to assume that most building materials come from overseas. They do not, not even 10% of residential construction building materials are imported. The National Association of Home Builders will tell you so. And really, the majority of those few imports that do come from elsewhere, they come from, Canada in the form of timber. You might have heard about that before. Now, there are some things like finishes and fixtures that get sourced from, oh, various other countries, but yeah, the biggest potential tariff expense impacting home builders would come from enacting a cost on Canadian lumber. But I and a lot of economists as well, they're pretty skeptical that the administration would really enact a tariff on a close ally like that, on Canada's raw materials. In fact, Chief Economist Lawrence Yoon of the NAR he conceded that even potential lumber tariffs, they might be given a phasing in period, and that would encourage American timber mills to fill in any production gap. It's also important to you know, remember that doors, windows, cabinets that builders utilize, they are typically produced within us, borders. Windows, doors, cabinets made domestically, unless it's something that relies on raw materials that are imported, they ought to be little affected by tariffs. One example is that kitchen sinks now they largely went from being sourced in China, then Malaysia, then Indonesia, and one main customer is now talking about sourcing them out of Mexico or the Dominican Republic. So there are a few things that less than 10% that's imported. Another imported item is flooring, which moved away from China, went to India for a while, went a little bit back to Brazil, and now more is being sourced by Ecuador. But the important thing to remember is that these are outlier components. Not even 10% of residential construction building materials are imported. That's what you want to remember, concrete, us, rebar, us. So you know, as a real estate investor, you can feel good that as your portfolio grows, each one of your properties was chiefly built with us, labor that you already knew, but it is also built predominantly with us, materials as well. How likely are single family rental investors to say that they want to buy more investment property this year. Well, year ago, 60% of them said that. Today it is up to 76% yes, that many say that they are either likely or very likely to buy single family rental property in the next 12 months, and that same group that was surveyed is also unlikely to sell their property, and they also said that they are more likely to raise the single family rent this year. And all this is according to a joint lending one resi club survey. However, most fall in the range of raising the rent between just 1% and 6% this year, so pretty modest rent increases. In fact, in every region of the US, the majority of single family rental investors describe their rental market as either strong or very strong. But can you guess the weakest region? Okay, this region is the one that still has a majority of landlords that say that their market is strong, but yet the weakest of them all is the South West, and that is largely due to over building and in the survey, what expense increased the most the past 12 months? Well, number one is that 37% of respondents these landlords said it is still insurance premiums. Second place was that 23% say property taxes are increasing the most. And then third was. And 21% say that maintenance and repair costs have increased the most for them. So the top three expenses cited expense increases that is in order, are insurance, property tax, and then maintenance and repairs. And a few weeks ago, I discussed with you, you might remember about how upgrading or remodeling

    41 min
  8. Rising Prices Lead to Social Decay with Doug Casey

    12/30/2024

    Rising Prices Lead to Social Decay with Doug Casey

    Discover how inflation is destroying the value of your money and eroding the ethical foundations of society. Legendary author Doug Casey reveals the insidious ways rising prices lead to social decay, unethical behavior, and the breakdown of trust.  Learn how to protect your prosperity by shifting away from the falling dollar and into real assets like gold, real estate, and carefully selected investments.  Don't let inflation rob you - get the insights you need to thrive in this challenging economic environment. Will you please leave a review for the show? I’d be grateful. Search “how to leave an Apple Podcasts review”.  Resources: Visit internationalman.com to read Doug Casey's weekly articles and watch his "Doug Casey's Take" videos on YouTube. Show Notes: GetRichEducation.com/534 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com GRE Free Investment Coaching:GREmarketplace.com/Coach Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  You get paid first: Text FAMILY to 66866 For advertising inquiries, visit: GetRichEducation.com/ad Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE’ to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript:   Automatically Transcribed With Otter.ai    Keith Weinhold  0:01   Welcome to GRE. I'm your host. Keith Weinhold, inflation does not mean rising prices. Inflation is an expansion of the money supply which results in rising prices, and it leads to wider societal decay and moral breakdowns in ways that you've never thought about before. It misdirects inflation frustration toward people like housing providers and grocers, we explore it today on get rich education.   Mid south home buyers, I mean, they're total pros, with over two decades is the nation's highest rated turnkey provider. Their empathetic property managers use your ROI as their North Star. So it's no wonder that smart investors just keep lining up to get their completely renovated income properties like it's the newest iPhone. They're headquartered in Memphis and have globally attractive cash flows and A plus rating with a better business bureau and now over 5000 houses renovated. There's zero markup on maintenance. Let that sink in, and they average a 98.9% occupancy rate, while their average renter stays more than three and a half years. Every home they offer has brand new components, a bumper to bumper, one year warranty, new 30 year roofs. And wait for it, a high quality renter. Remember that part and in an astounding price range, 100 to 180k. I've personally toured their office and their properties in person in Memphis, get to know Mid South. Enjoy cash flow from day one. Start yourself right now at mid south homebuyers.com that's mid south homebuyers.com   you know, whenever you want the best written real estate and finance info. Oh, geez. Today's experience limits your free articles access, and it's got paywalls and pop ups and push notifications and cookies disclaimers. It's not so great. So then it's vital to place nice, clean, free content into your hands that adds no hype value to your life. That's why this is the golden age of quality newsletters, and I write every word of ours myself. It's got a dash of humor, and it's to the point because even the word abbreviation is too long, my letter usually takes less than three minutes to read, and when you start the letter, you also get my one hour fast real estate video. Course, it's all completely free. It's called the Don't quit your Daydream letter. It wires your mind for wealth, and it couldn't be easier for you to get it right now. Just text GRE to 66866, while it's on your mind, take a moment to do it right now. Text GRE to 66 866.   Speaker 1  3:12   you're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education.   Keith Weinhold  3:28   We are the GRE from Albany, New York to New Albany, Ohio, and across 188 nations worldwide. I'm your host, Keith Weinhold, and this is get rich education. You have probably heard it been said by now that money must have three attributes. It is a store of value, a medium of exchange and a unit of account. The US Dollar does not meet the first one store of value. That's due to inflation. How is the dollar a store of value, it is not so then the dollar is a mere currency, not money. You can make the case that gold is a store of value, maybe that Bitcoin is, although it's got a short track record and it's a volatile ride the S, p5, 100, you could say that's nothing more than a store of value long term. When you understand all the drags on it, you're only treading water long term with the s, p, I've discussed that on shows earlier this year. That leaves real estate as not just a good long term, stable store a value, but when it's done right, it is the vehicle where inflation actually increases your purchasing power. And here's a new way to think about it, money is your time and energy captured in an abstracted form for the government to take out debt. They are borrowing your time and energy. Government debt is the closest thing we've ever seen to time travel.They're borrowing the collective time and energy from your future. How do you achieve time travel? You borrow human time and energy from the future currency debasement steals the time and energy of you and everyone alive today. That's why you've got to protect yourself. And what this does is that it actually increases your time preference. Yeah, the term time preference, that's something that Bitcoin authors like Dr saifedean Amos often use time preference and actually think that it's sort of a confusing term. Time preference, though, it sounds like a good thing, it's actually a bad thing. It means that you would rather consume now and over consume now instead of later. Having a high time preference means that you want to all out, ball out right now, and not consider your future. Well, that's what inflation does whenever you see the term time preference out there. I think the best way for you to remember what that means is think of it instead as a now preference. I think now preference is more intuitive than time preference. Teach me how to Dougie, yes, we've got public figure and mega popular author Doug Casey back with us today to discuss how rising prices lead to social decay and makes humans have a higher time preference resultantly, I guess that is teaching us how to Dougie. Yes, indeed, that is a reference to that, like 15 year old song, teach me how to Dougie, and we would drop some bars of that song right now. Oh, you know that me and the team here, we really want to, but we would probably have some royalty issues with that one here, and I'll tell you that is such a stupid song. Teach me how to Dougie, but at the same time, once you've heard it, the next thing that you want to do is hear it again somehow. But it's pretty likely that Doug Casey and I have some more important things to talk about. So fortunately for you, rather than discuss a 2010, rap song any further, we're going to discuss how rising prices lead to social decay.   Monetary inflation is even worse than you think. This era's rising prices and falling values actually lead to social decay. Villains and unethical actors are getting rewarded and they're stealing from you. We're going to discuss just how the international man himself, a legendary and generationally popular author, is back with us for a sobering look at inflation and social decay today. Hey, welcome back in. Doug Casey.    Doug Casey  8:04   Nice to talk to you, Keith. I'm speaking to you at the moment from my farm in Uruguay, which is one of the, I would say, two, most stable countries in Latin America, and one of the two or three most stable countries in the Western Hemisphere, there's a lot of real estate in the world, other than in the US. And I know that you mostly talk about real estate. I've actually done a lot of real estate too, all around the world, in the Orient and in Europe and South America, and, of course, a lot in the US and Canada. So I'm generally friendly to real estate, and it's been very, very good to me.   Keith Weinhold  8:44   Well, you're truly living up to the International Man moniker again today, joining us from that small South American nation of Uruguay and Doug. Before we talk about the inflation and the social decay, what are property taxes like there in that part of Uruguay. And I know you often spend time in Buenos Aires Argentina as well. If you can talk to us in terms of the percent of the value of the property that you pay in property tax each year, which tends to be one to one and a quarter percent on an average in the United States.   Doug Casey  9:13   that's right. And I think in some states like Illinois, it can go up to about 2% if I'm not mistaken, which means that you really don't own your property. If you don't pay your real estate taxes for for a year or two, you'll find out who really owns it, right? But taxes are high in South America, but generally, not too bad on real estate per se, certainly not on farmland, but farmland everywhere in the world doesn't pay much in the way of real estate taxes, and that's certainly the case here in Uruguay, and the same in Argentina, which might be worth more discussion, because Argentina is doing something that's actually unique in world history right now. And I.hope it's a story that ends well, because they're going in the right direction. But to answer your question, if you buy a condo or a house in a city in Uruguay or Argentina or most of these countries down here, you're going to pay real e

    41 min
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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 grow 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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  • Creator
    Real Estate Investing with Keith Weinhold
  • Years Active
    2014 - 2025
  • Episodes
    543
  • Rating
    Clean
  • Copyright
    © Keith Weinhold
  • Show Website
    Get Rich Education

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