Get Rich Education

Higher returns and lower risk are expected with carefully-chosen real estate. Two hosts put me on the hot seat about rental property. I’m the guest. You get to listen to one of my recent interviews in the media today. Real estate deals are not as attractive today as they were 5-10 years ago. But it’s still the best place to invest your dollars today. The property is only the fourth-most important thing in real estate investing. I discuss the three bigger ones. I detail why real estate returns are multiples higher than those from the S&P 500. Learn why a total return of anything less than 20% in real estate is actually disappointing.  Housing inventory is up year-over-year, down over the past five years. From 1 (worst quality) to 10 (best quality), a 4 yields the best cash flow in long-term rentals. I describe why. Resources mentioned: Show Notes: www.GetRichEducation.com/428 Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com JWB’s

Metaverse real estate is virtual. Can you make money with it? First, I discuss updates to 3-D printed homes and Boxabl homes. Next, our guest, Steve Hoffman, describes that metaverse is a virtual space where you can interact with virtual objects. There is no single metaverse. There are apps in the metaverse, like Second Life and Decentraland. Learn what makes a piece of metaverse real estate valuable or worthless. You often buy NFTs on the blockchain. With Upland, you can buy NFTs of real properties, like the Statue Of Liberty or Dodger Stadium. Our guest feels that metaverse real estate investing is highly speculative. It is risky and often akin to gambling. Metaverse economies are subject to monetary inflation. Does metaverse RE have any value? Steve runs the global innovation hub, Founders Space. Resources mentioned: Show Notes: www.GetRichEducation.com/427 Learn more about Steve Hoffman: FoundersSpace.com A current popular metaverse app: https://decentraland.org Get mortgage loans for investment property:

At times, 3-D printed homes, modular, and shipping container homes are not the answer for both single-family home and apartment construction. The promise of new truss and framing technology can substantially speed up conventional construction. This can solve many problems at once: housing shortage, labor shortage, and stubbornly persistent materials supply shortages. FrameTec is a technology that builds the roof truss, floor truss, and walls all in a forthcoming Arizona factory. Guests Damion Lupo and David Morris tell us about it today. The FrameTec process uses solar technology and reduces material waste. Learn more at FrameTec.com. It’s possible that there is still room for accredited investors. This is Made In America technology. Resources mentioned: Show Notes: www.GetRichEducation.com/426 Learn more about FrameTec: www.FrameTec.com Join me live on Thursday’s Florida properties webinar: www.GREwebinars.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail:

Get an update on how the work-from-home trend is good for residential RE and bad for office RE.  Office space values are down 17.5% from their recent peak. Americans must now earn at least $107,281 to afford the monthly mortgage payment on a median-priced home. The NAR expects 10% home price appreciation this year, 1% in 2023, and 5% in 2024. The tiny home movement is both architectural and structural. It’s defined as a home of 400 sf or less. Tiny homes are hard to find. In the US today, just 0.3% of listed homes are tiny homes. You can own a new-build tropical tiny home near the beach in Nicaragua for under $200K. Our own COO, Aundrea, bought one. She tells us about it. It’s on Nicaragua’s west coast. It’s not just an isolated tiny home experience.  There’s a community with a: restaurant, bar, bird watching area, butterfly garden, viewing tower, yoga area, and communal garden.  Often, loans aren’t available for foreigners. Here, you can get 50% or 80% loans. You can live in this tropical tiny home year-roun

The ideal inflation rate is zero just like the ideal theft rate is zero. When lower inflation (7.7%) was recently reported, mortgage rates experienced a record daily drop. I detail the implosion of crypto exchange, FTX. It was a Ponzi scheme. 2022 is the 2008 of crypto. Garrett Sutton and his son, Ted Sutton, announce the father-son succession plan. They are attorneys that help protect your real estate from lawsuits at Corporate Direct. Ted’s experience at a Chilean copper mine helped make him pivot from a mining engineering track and into law. RE investors have three main lines of defense: 1) Ethical operations. 2) Insurance. 3) LLC. Learn how to properly form and maintain an LLC. Don’t try to win a lawsuit. Avoid it in the first place. Learn why landlords get sued today. Corporate Direct provides free 15-minute consultations. Resources mentioned: Show Notes: www.GetRichEducation.com/424 Corporate Direct protects your biz & real estate from lawsuits: Corporate Direct  Garrett Sutton’s newest book: Veil

A housing crash is upon us. But it may not be the kind of crash that you think. I explain this sales crash means to the future of the housing market. Caeli Ridge, President of Ridge Lending Group joins us. She gives an exact prediction about where and when mortgage interest rates will peak. 37% of homeowners have no mortgage at all. Among those with a mortgage, 85% have an interest rate under 5% per Redfin. They don’t want to sell and give up their rate, constraining supply. It’s a nationwide lock-in effect.  A housing PRICE crash is not expected. Existing homeowners can afford their mortgages and have record equity. This is reflected in the low delinquency rate. The average age of first-time home buyers hit a record 36. Caeli Ridge tells you how to get a lower mortgage interest rate with different loan types. Investors keep their loan an average of 5-6 years. Ridge offers mortgage loans specifically for investors: plain fixed rates, non-recourse, DSCR, asset depletion, bridge loans, commercial loans, cross-c

Get our wealth-building newsletter free—text ‘GRE’ to 66866. Money is an abundant resource, not a scarce one. If you believe that money is so scarce that it’s more valuable than time, I provide the solution to that quandary today. Today’s guest, Victor Menasce, believes that today’s macroeconomic environment dominates local stories. We discuss how to navigate today’s higher mortgage interest rate environment. Banks could be on the brink of a concerning liquidity crisis today. Should central banks set interest rates or can free markets perform that role better? Learn what financial actions you can take in this era of global instability. Resources mentioned: Show Notes: www.GetRichEducation.com/422 Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com JWB’s available Florida income property: www.jwbrealestate.com/gre or (904) 677-6777 To learn more about eQRPs: text “GRE” to 307-213-3475 or: eQRP.co Available Central Florida new-build incom

Get our wealth-building newsletter free. Text ‘GRE’ to 66866. You can help abolish the term “slumlord”. Profit by providing housing that’s clean, safe, affordable, and functional. Compared to the world, US mortgage terms are so advantageous that they almost feel illegal.  I compare this with: Canada, UK, Ireland, Spain, Australia, South Korea, Germany, France, Switzerland, and Japan. Are we in a recession? There continues to be dissonance in the economy. College enrollment keeps declining. But now, 46% of parents even hope that their child does not pursue a four-year degree after high school. A woman faced with eviction released a bee swarm on law enforcement. It costs $1.7M to build a small public lavatory in San Francisco. Resources mentioned: Show Notes: www.GetRichEducation.com/421 $1.7M public toilet in San Francisco: https://www.theguardian.com/us-news/2022/oct/24/san-francisco-1-million-public-toilet Woman being evicted releases bee swarm: https://www.usatoday.com/story/news/nation/2022/10/20/woman-rel

In times of high inflation, don’t rents have to collapse? Tenants are getting squeezed, paying more for food, gas, medical care, and everything else. Won't rents have to fall? Will this create a crisis for landlords too? If tenants can’t pay the rent, landlords must still pay property expenses.  Historically, what happens is opposite of what most think. So I explore what happened in high inflation 40+ years ago to forecast what will likely happen in the future. There are three reasons why rents soar in high inflation: 1) tenants move down a class, 2) doubling up as roommates, and 3) today’s low housing supply and high demand. Rents are up 12% year-over-year today for both SFRs and apartments. Real Estate Pays 5 Ways™, not four or six. Get started with income property in Baltimore, Philadelphia, and Pittsburgh at: www.GREmarketplace.com/Coach Our in-house coach, Naresh, will help you. His services are free. Both urban and suburban properties are available. Urban areas often have a high Walk Score. The rent-to-

Are you a quitter? Today’s show can make that feel aspirational. Quit a job you hate for the work you love. Author of “The Quitter’s Manifesto” and GoBundance Founder, Tim Rhode, joins me today. For context on quitting your job, start with the I/O Quotient. The Soul Sucking Meter: Are you being paid enough? Are you respected? Are you a good cultural fit at your workplace? How does it feel when you wake up to go to work? Could you do your job for decades?  I quit my job for two main reasons: 1) Try it. 2) Be irreplaceable. Tim describes that quitting your job is like catching the next trapeze.  Want growth? Try something new and scary. You did this as a kid. For example, when you were 11 years old, you swam in water over your head.  Take out a home equity loan before quitting your job. Put those funds into another bank. This builds your financial cushion during a lifestyle change. Resources mentioned: Show Notes: www.GetRichEducation.com/419 Tim Rhode’s book, The Quitter’s Manifesto: QuittersManifestoBook.com

Homebuilder confidence is low. I talk to one today. Then, learn how a home is built. Join our Jacksonville properties webinar Oct. 20th. Sign up free at: GREwebinars.com. Text “GRE” to 66866 for our free “Don’t Quit Your Daydream” e-mail letter. After discussing the best place to invest today, learn how a home is actually built. Learn how a home is built: zoning, land acquisition, permitting, engineering, drainage, clearing & grubbing, adding earth fill, soil compaction, trenching, adding sanitary systems, stormwater system, lift station, conduit, electrical, foundation, slab-on-grade, plumbing, framing, block, roof truss.    Homebuilder confidence is low among those that sell to owner-occupants. That’s due to higher mortgage interest rates.  Among homebuilders that sell to investors, it’s better. Why? Higher rates mean higher rents. Tenant demand for fourplexes is strong. In inflation and a possible recession, more people must live frugally. Get started with new-build Florida income property (SFR to four

You want to increase your expenses. I reiterate why. All five ways that real estate pays are rarely surging at the same time. In the past year, appreciation has slowed, cash flow rose, principal paydown slowed, tax benefits are roughly the same, and inflation-profiting rose. How do you become a “laptop landlord” and know that you’re buying a good property? I share my favorite resources for real estate due diligence (laptop landlording). They’re all in the “Resources Mentioned” below. One mistake people make is that they tend to overgeneralize. They paint an entire city one color, saying something like: “I read that Memphis has high crime.” Well, where within Memphis? You can contract with an out-of-state stranger to check out a property for you at WeGoLook.com Aundrea Newbern, COO of GRE, MBA, NAR member (the woman with all the letters behind her name) joins me. She discusses her top real estate successes and failures. We discuss floods, old cast iron pipes, partnerships, single-family vs. multifamily, LTRs v

Residential real estate has greater usefulness and is easier to understand than: agricultural, office, retail, industrial, and warehouse real estate sectors. Tenants are staying in both SFRs and apartments longer than before. I discuss three reasons for today’s longer tenant retention trend. Higher mortgage rates correlate with higher home prices. In fact, in the nine times mortgage rates increased 1%+ since 1994, home prices rose seven of those nine. During recessions, mortgage rates typically fall. Both are opposite of what most people think.   Resort communities are almost declaring war against short-term rentals. I explore the depth of the problem and discuss solutions. Are the wealthy at fault?  People that grew up in an area cannot afford housing in these STR hotbeds. Resources mentioned: Show Notes: www.GetRichEducation.com/416 How to Raise The Rent and Keep Tenants Happy (Video): https://youtu.be/sqFwbn4yFhA 40-Year Mortgages: https://www.housingwire.com/articles/newrez- debuts-40-year-non-qm-mortgage

Car washes can be remarkably lucrative. This is enhanced with a franchise model and selling subscriptions to car wash customers. “There is no other operation on a 1-acre site that can do 1 million to 2.5 million in sales and pocket half of that.” -WSJ story Like other real estate, a car wash location is vital. Much like apartment buildings, car washes are valued based on their income stream amount. You can participate yourself. Start here: https://gremarketplace.com/carwash. Must be accredited, minimum $100K investment. Tommy’s Car Wash is an innovative franchise. Customers use a mobile app. Only Panera Bread and Chick-fil-A have higher sales revenue per location. (Wow!) Car washes have high cash flow and tax efficiency. Pro forma returns for individual investors like you have a 1.75x return on investment in five years or less. There is 100% bonus depreciation in year one.  Learn more and get started at: https://gremarketplace.com/carwash Resources mentioned: Show Notes: www.GetRichEducation.com/415 Get start

Join me live on our St. Louis properties webinar this Wednesday at: GREwebinars.com The Fed is out to crush lingering inflation. Coming rate hikes will likely lead us into a recession, if we’re not there already. Home price gains have stalled. This is worse for sellers and better for buyers.  Landlords are winning in today’s market; renters are losing.  CoreLogic’s Single-Family Rent Index shows a 13.4% YOY national rent gain. Single-family rents are up $500+ over the past six years.  For a long time, investing in hardwood trees was primarily for big money hedge funds and family offices.  You can own the title to quarter-acre parcels with teak trees that grow on top of them for just $6,880. Timber prices are often counter-cyclical to markets. They keep growing through recessions, market collapses, and fluctuating interest rates. Teak hardwood has natural oils that make it fire and rot resistant. In Panama, they thrive where there is about six months of rain and then six months of dryness. The operator that I

A GRE listener since 2015, Christian Montalvo and her family are growing their real estate portfolio in the Dallas-Fort Worth area. She has been a food microbiologist. Christian works for a company that cleans food processing plants. Her husband is a W-2 employee too, a financial analyst. After being a renter for about $1,000 / month in a tiny DFW apartment, they began with buying a $200K owner-occupied duplex with a 3.5% down payment. Next, they bought a fourplex. At this point, they have five rent incomes. They kept growing. Today, she and her husband still work their W-2 jobs. But as a young, married couple, they now have the flexibility such that they don’t both have to work. We discuss if they invest in 401(k)s and conventional retirement plans. I give many examples of “growing your means” instead of “living below your means”. Last year, Christian became a real estate agent. She works with investor clients.  Resources mentioned: Show Notes: www.GetRichEducation.com/413 Christian Montalvo’s e-mail address

“How long are you going to wait until you demand the best from yourself?” -Epictetus I share 18 lessons with my 18-year-old self.  #2 is: Don’t fear being different. That’s your advantage. #4 is: No one cares about your college grades. #14 is: Finding the truth is more important than being right. #17 is: What does life want from you? National median home prices eased from June to July—from $414K to $404K.  Homebuilders are in a recession. However, available housing supply is still low and demand is high. Almost every human is forgotten in four generations. Is a housing price crash imminent? You get a clear “yes” or “no” answer. The NAR says that today’s first-time homebuyer is: 33 years old (oldest ever), $86,500 household income, $252K median purchase price, 7% down payment, and 37% carry student debt. Average size is 1,640 sf. If you’d like to advertise with us, visit: GetRichEducation.com/Contact  Resources mentioned: Show Notes: www.GetRichEducation.com/412 Median sale price eases: https://www.wsj.com/ar

You told yourself you’d change the world, then you let the world change you. Rather than asking yourself, “What do I want out of life?”, a more powerful question is: “What does life want from me?” Almost everyone wants to be “job optional”.  People often use their words to denigrate the importance of money, yet their actions validate its importance. High-flying real estate appreciation rates are mostly over with. The market is normalizing. Through Q2, national median home price appreciation is 14%. But it's quickly slowing. American apartment rent-to-income ratio is 23% for tenants. Zumper tells us there’s about 10.2% national rent appreciation. Highest are TN and NC. We have available properties in the Midwest and South. Naresh & I spotlight Poinciana, FL; Ocklawaha, FL; and Memphis.  For available properties and free coaching, contact Naresh at: naresh@getricheducation.com Resources mentioned: Show Notes: www.GetRichEducation.com/411 E-mail Naresh about cash-flowing properties: naresh@getricheducation.c

Is the economy healthy or unhealthy? We’ve had two consecutive quarters of GDP contraction. High inflation and supply problems persist. On the other hand, we have a strong jobs market, low unemployment, and high rent increases. Ultimately, the NBER decides whether or not we’re in a recession. Today’s guest, Tom Wheelwright of Wealthability, tells us why he thinks we’re in a recession.  I share with you the exact rent increase numbers I’ve had on my rental single-family homes. Historically, a recession occurs every five years, on average. Whether we’re there yet or not, I believe there’s a likelihood of a recession soon. Tom thinks whether or not a recession is declared is important; it affects consumer sentiment. He breaks down the new “Inflation Reduction Act”. It does not appear to help reduce inflation.  Rather, it appears that it will: increase union wages, enact climate change policy, add taxes to pharmaceuticals, hurt small business, and increase IRS enforcement. “People who have never seen an IRS audit

Is today’s housing market healthy? “Yes” for rental property owners, existing homeowners, and sellers. “No” for renters, wannabe first-time home buyers. “Unbalanced” is a better word to describe today’s housing market. I bought my first income property 20 years ago today. In negotiation, emotions trump facts. Chris Voss, former FBI hostage negotiator, joins us for real estate negotiation tips.  If you need a decision from someone, get it in the morning before they have decision fatigue. In a negotiation, try to get agreement. Don’t try to get the other party to say “yes”. Chris likes to let the other side talk first. Let “no” out slowly. A great way to say it is, “How am I supposed to do that?” Self-deprecating humor can work in negotiation. Learn how to motivate people to finish projects in a timely fashion for you. Resources mentioned: Show Notes: www.GetRichEducation.com/409 Black Swan Group: www.blackswanltd.com Mike Gundy rant “I’m a man. I’m 40.”: https://youtu.be/zQ3oXkDPKbM Get mortgage loans for inve