Get Rich Education

We compare the safety of all these investments: cash, savings accounts, treasuries, CDs, gold, cryptocurrency, stocks, mutual funds, ETFs, raw land, a primary residence, and income properties. Listen to a mainstream media video clip about inflation from NBC Nightly News. We get a Florida market update from GREmarketplace.com/Orlando. Overall housing supply is low. It’s even lower for entry-level properties. For renovated properties, Florida insurance premiums have risen dramatically in the past few years. However, for new-builds, premiums are about 70% lower. These particular available properties in Palm Bay, FL are typically: 4 BR, 2 BA, 2-car garage, concrete block, single-family rentals, new-build, vinyl flooring, granite counters, and infill quarter-acre lots. $319,000 is what buyers pay.  Today, these properties appear to appraise for $370,000+. You have $51K+ of built-in equity. For those that select property at GREmarketplace.com/Orlando, your insurance is paid for the first year.  Resources mentione

When mortgage rates rise, home builders slow down on building. This constrains supply and supports housing prices. A record share of Americans say inflation is their No. 1 concern. The CPI is 9.1%. Property operating expenses are rising with inflation, like insurance and property tax. What helps you pay for it? Rising rent. Philosophically, why should you raise the rent on your tenants?  Besides adjusting it to the market amount, you took time learning, you built your credit, you accumulated a 20% down payment, you originated an 80% loan, your operating expenses are rising, you weathered pandemic uncertainty. If an auto mechanic makes $60 an hour, in ten years, they might make $90 an hour. Where’s the growth in this? Kathy Fettke from Real Wealth joins us.   We disagree on the housing market being “healthy”. I believe a good description of the housing market is: "unbalanced": Healthy for: rental property owners, existing homeowners, sellers. Unhealthy for: renters, homebuyers.  She believes that the Fed has o

National home prices are up 275% since 1991. I break it down state-by-state for you. Slowest? Connecticut with 137%. Fastest? Utah with 599%. Two misleading RE statistics are: real estate sales volume, home price cuts. I tell you where I’m spending my summer. Next, Tom Wheelwright joins us. He authored the new book, “The Win-Win Wealth Strategy”. He tells us about the 7 investments that the government will pay you to make. You don’t pay up to 12.3% Social Security Tax on rental income like you do with your day job. Tax depreciation is explained. Bonus depreciation is being gradually phased out after this year.  Resources mentioned: Show Notes: www.GetRichEducation.com/406 Tom’s New Book: “The Win-Win Wealth Strategy” State-By-State Home Appreciation Since 1991: https://advisor.visualcapitalist.com/growth-in-u-s-house-prices-by-state/ 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.jwbr

Real estate funds invest in multiple properties.  Real estate syndications often invest in just one property. “What is the worst deal that you’ve ever done?” Ask your fund provider that question. I’m willing to share that I invest my personal real estate fund dollars with Flip & Dani Lynn Robison of Freedom Capital Investments. Fund pros: More passive than turnkey, stable returns.  Fund cons: Vet your operator. Learn more or get started at: GREmarketplace.com/funds There are short-term funds for liquidity, and longer-term funds for higher returns. The difference between simple and compound interest weighs in here.  Learn what a “preferred return” is. Fund returns of up to 10-12% are offered. Learn where your return comes from. Fund objectives: safety, certainty, reliability, and growth.  We’re talking about high-yield, fixed income fund. Dani Lynn has been a part of more than 600 multifamily deals. Learn how funds have two audit layers. There are funds for both accredited and non-accredited investors. Lea

Your Financial Independence Day happens when your residual income stream amount exceeds your basic monthly expenses. Rental demand is high for three big reasons: rates are rising, stringent mortgage qualification standards, housing undersupply.   I answer three listener questions: Should I make a big down payment? Is borrowing at lower than inflation profitable? What about prepayment penalties? Ridge Lending Group President Caeli Ridge joins us to discuss today’s mortgage lending landscape. Today, are ARMs beginning to make more sense than fixed-rate mortgages? We explore. Learn about the cash-out refinance climate. Second mortgages on income properties are still limited. Does it ever make sense to refinance to a higher mortgage interest rate? We discuss. Caeli Ridge thinks mortgage rates will keep rising. Resources mentioned: Show Notes: www.GetRichEducation.com/404 Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Freddie Mac Includ

“You DO care about what others think of you. That’s your reputation.” -Keith Weinhold People care about your brand when you create value for them. Next, you must reach people. A construction worker in London decided that he wasn’t where he was meant to be in life. He’s our guest, Steve D. Sims. He started asking others why they were wealthy but he wasn’t. A personal branding expert, Steve tells us why the right brand for you is the “authentic you”. When you meet someone, ask them about themselves. They are their own favorite subject. “A brand is what people say about you when you’ve left the room.” -Steve Sims Brands are either solution-based or aspirational. Every person has a brand. Donald Trump was well-branded because he had clear slogans like “Make America Great Again” and “Build A Wall”. The lesson? Be clear about who you are or what you stand for. It’s OK to know what you’re “not”. For example, I didn’t know how to hire a COO for GRE and still don’t have experience managing people. Resources mentioned:

For many, it’s become a scary world with $5-$6 gas, soaring food prices, spiking rents, the medical system is still a mess, and wages aren’t keeping up with inflation. Inflation is at a 40-year high of 8.6%. The Fed raised rates ¾%, the biggest jump in 28 years. For every $1M in real estate debt that you have, you’re benefiting $86,000 each year due to your debt debasement. Affordability has become so bad for wannabe first-time home buyers that increasingly, they’re becoming your renter. Many project rent growth to exceed home price growth this year. Rent.com’s Rent Report shows a 26% annual rent increase nationally. Every 1% in a mortgage rate increase decreases a buyer’s purchasing power by 12%. GRE’s COO Aundrea Newbern, MBA joins me. We discuss our favorite RE information sources. Aundrea expects to diversify her RE portfolio into more markets. She’s been focused on southeast Georgia. Some RE resources we use: www.city-data.com, US Census Bureau data, CNBC.com, HousingWire.com, FRED data, the MLS, AirDNA.

The housing market has calmed, but it’s still strong. The homeownership rate of 65% is poised to fall these next few years. People must live somewhere. This should make for more renters. Mortgage delinquencies have fallen for seven straight quarters. The forbearance program kept people in their homes. “The Great Reshuffling” describes the US housing market since 2020. Inflation flips money upside-down. Focus on prudent borrowing, not saving. International Man Doug Casey joins us. He calls for a “Greater Depression” ahead. For consumers, the costs of energy, food, and housing have become crippling.  Doug thinks that the decline of world economies will continue. World cities have more people living on the streets.  He thinks that the Fed can’t hike rates very high. It will result in too many debt defaults. Then how will inflation be curbed? Doug thinks you should save, but don’t save in dollars. Are price controls coming? That’s when the government tells companies that there’s a ceiling on the price they can ch

You often relate to other people when you show yourself as vulnerable and fallible. In many contexts, this is even better than acting professionally. Today’s guest, “Miracle Morning” author Hal Elrod, tells us that people spend too much effort trying to impress others. When you give the most, it’s liberating. “You SHOULD care about what others think of you. That’s your reputation.” -Keith Weinhold Once, Hal e-mailed friends, ex-girlfriends and colleagues to seek criticism about himself. That feedback hurt. Everyone wants change, but no one wants to change. Generosity, selflessness, and contribution foster meaningful relationships. I share that viewers were recently critical of my YouTube video. Hal admits that he believes that he’s not a great listener. Hal strives to add value to every single person that he meets. Aundrea Newbern, GRE Operations Lead, joins us for milestone Episode 400.  Resources mentioned: Show Notes: www.GetRichEducation.com/400 Hal Elrod’s books and movie: www.MiracleMorning.com Hal’s fr

Have you ever met anyone that created wealth with stocks? I haven’t. Why not?  Inflation, emotion, taxes, fees and volatility are the reasons. I break this down. The Rule of 72 is what traditional advisers cite as a wealth-builder. I describe why this does not work. Learn why returns from stock and mutual funds are often less than zero. What really creates wealth? Leverage. Learn trade-offs between long-term rentals and short-term rentals. Zach Lemaster joins us. A licensed optometrist and captain for the US Air Force, he’s become financially-free through real estate.  We discuss the pros and cons of owning “Build-To-Rent” new construction income properties. It takes patience during the build process. Find Build-To-Rent income properties by e-mailing GRE’s Investment Coach: naresh@getricheducation.com Resources mentioned: Show Notes: www.GetRichEducation.com/399 Get income properties by e-mailing GRE’s Investment Coach: naresh@getricheducation.com When I interviewed the 401(k) inventor: https://www.getriched

Are “coffin homes” coming to the United States? This is concerning. Housing is so expensive that people live in cocoons. A new Biden plan makes efforts to increase American housing supply. Finally! We need help on the supply side, not the demand side. I explore recession prospects with you.  During 7 of America’s 8 recessions (over the last sixty years), home prices only fell once. What Really Matters: “If you had invested $1,000 in JP Morgan in 1882, you’d be dead today.” You can borrow against your RE portfolio’s value with a cash-out refinance, tax-free. It’s like “lump sum cash flow”. Add properties to your portfolio through our international network at GREmarketplace.com Resources mentioned: Show Notes: www.GetRichEducation.com/398 GRE Video: What Really Matters https://youtu.be/Yhkvjg-gj9Q California’s Cocoon-Like Pods: https://www.cbsnews.com/news/sleeping-pods-startup-800-a-month-brownstone-shared-housing/ Biden’s plan to increase American housing supply: https://www.whitehouse.gov/briefing-room/sta

Will you be banned as a real estate investor? Some jurisdictions consider adopting this stance to keep soaring prices in check. Some workers cannot afford to return to the office. If they leave home, they would have new expenses for gasoline, meals, parking and the big one—child care. Of the “5 Ways Real Estate Pays”, historically: three are now high, one is low, and one is the same. Caeli Ridge joins us. She’s the President of Ridge Lending Group. They specialize in income property loans. Despite higher mortgage interest rates, investor-centric mortgage companies like Ridge haven’t seen much decline in business. Learn why. Their “All-In-One Loan” can reduce the amount of property interest that you pay over time. It’s a 30-year line of credit with high flexibility. Use Ridge’s All-In-One Loan Simulator to see if you save: https://ridgelendinggroup.com/aio-loans/ We discuss interest-only loans (which I like) and negatively amortizing loans. The latter got borrowers in trouble during the Global Financial Crisis

The mad scientist of multifamily is here today.  Neal Bawa is a data scientist. He keeps emotion out of real estate for investors in his $947M portfolio. He believes that higher mortgage interest rates are a smaller obstacle than the Fed’s currency creation and destruction. He says: “Accept the risk.” We discuss investor confirmation bias. Neal thinks American cash flow will keep diminishing. Of all emerging trends, Neal believes that the work from home trend is among the most substantial. Learn more about Neal at www.MultifamilyU.com or by searching “Neal Bawa”. The blockchain is a digital ledger. It allows everyone to access information publicly and securely. It allows for the democratization of information. Blockchain looks to disrupt the real estate title industry. Exorbitant title insurance fees could go extinct. Tokenization is easier with blockchain. This means that you can sell real estate shares without friction. Institutional investors are poised to own more of the real estate market, taking share f

Rents are spiking 13-15% annually in America today. When they rise, they rarely ever fall again. This is why rent amounts are called “sticky”. Learn why. Even when I was a landlord during the GFC fifteen years ago, my rents didn’t fall. Rents are skyrocketing due to: Low housing supply Higher prices Higher interest rates Demographics. 25-34 year-olds are in prime household formation years. They want their own place. This is America's most populous age cohort. Next, I talk with an Alabama / Florida builder about how he overcomes today’s material supply chain and labor shortage difficulties. They have a 93-day build time. How? They store windows so that they cannot run out.  Cabinets have been a problem so bad that they’ve had to leave homes 99% complete until cabinets were ready.  Lumber and petroleum product price volatility has been a challenge. They have their own division for titling vacant land for future building.  Alabama has America’s 2nd-lowest property taxes. As an out-of-state investor, you get to

The housing crash is 100% certain. That’s because it’s a supply crash, not a price crash. I define a price crash as a loss in valuation of 20% or more. Here are the bubble factors that I consider in today’s show:  Price, inflation-adjusted price, interest rates, affordability, bond yields, personal incomes, foreign buyers, equity position, housing supply and more. From 2018 to 2022, I tell you about my recent housing forecast history. Redfin shows us signs of a housing market slowdown.  For Jacksonville investment property, start here: www.GREmarketplace.com/JAX Properties that don’t cash flow with a 20% down payment often do with a 40% down payment. But your leverage falls from 5-to-1 down to 2.5-to-1. Jacksonville has low cost properties, favorable climate, strong population growth, and growing industries like the Port Of Jacksonville. Get started with Jacksonville property at: www.GREmarketplace.com/JAX Resources mentioned: Show Notes: www.GetRichEducation.com/394 Get started with Jacksonville property: ww

One niche that people are passionate about is investing in self-storage facilities (SSF). SSFs are recession-resilient and there’s less to maintain. Your “tenants” are often cardboard boxes, not humans. This makes it easy to manage. Tenants often expect to stay for 6 months, but stay for 3 years. A 10 x 10 storage space might rent for $200. You could increase the rent by 10% to $220. They won’t move out due to a $20 increase, but you got a 10% rent hike across all your units. The best SSF locations are accessible, for example, near an expressway interchange. SSFs are little more than 4 pieces of sheet metal, a floor, and a door.  You can invest alongside today’s SSF expert guest, Dave, at: www.gremarketplace.com/selfstorage This business model: Buy property from a mom-and-pop operator, add size and scale, and sell to a REIT, all in a 3 to 6-year span. One must be accredited and invest at least $50K. Investors receive reports quarterly. SSF cash flow is modest, typically 3-7%. This is an equity play, where you

Why are home prices surging? I’ve got 10 big reasons and break down every one. Some reasons are not obvious. America’s residential loan-to-value ratio is just 31%.  Interest-only loans are my favorite loan type. You don’t need to make any principal payments. Most people think interest-only loans awful. I explain why they’re often so advantageous.  You meet GRE’s Investment Counselor, Naresh Vissa. For off market property, e-mail him at naresh@getricheducation.com. Naresh’s service is free to you. He guides you through the purchase process. He owns 8 properties in 4 states himself.  Contact Naresh. GRE has 50+ properties available today - SFR up to 5-plex, LTR, STR, and more. Resources mentioned: Show Notes: www.GetRichEducation.com/392 E-mail GRE’s Naresh Vissa for off-market property: naresh@getricheducation.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 877-74-RIDGE JWB’s available Florida income property: CashFlowAndGrowth.com To learn more about eQRPs: text “GRE” to 307-213-

Uncertainty is high. Inflation is spiking, supply chains are unreliable, and COVID keeps hanging around.  Russia’s invasion of Ukraine threatens to make inflation and supply chain reliability worse. Amidst this backdrop, today’s guest, Richard Duncan, discusses prospects for a US recession. Richard reiterates that the US needs credit growth of at least 2% annually (inflation-adjusted) to avoid a recession. In a recession, nearly every asset class would be affected. The wealth-to-income ratio’s importance is discussed. The Fed has begun hiking interest rates. They soon plan to begin destroying dollars with quantitative tightening. Richard wrote a new book, The Money Revolution. It includes a history of the Fed, and points out that China is positioned to become more powerful than the US. But the US can stay in power if it creates tons of money in order to finance infrastructure, green energy, biotech, nanotech, and more innovation. Richard maintains that capitalism no longer drives the economy. It’s “creditism

Now you have to earn your money twice. The first time is when you work for it, the second time is when you must invest it to beat inflation. My explainer on why higher interest rates slow inflation. “Inflation is legalized counterfeiting. Counterfeiting is criminalized inflation.” -Robert Breedlove When wages don’t keep pace with inflation, I explain why it destroys families. We compare short-term (STR) and long-term rental (LTR) property in southwest Florida. Get started with buying properties yourself at: https://gremarketplace.com/SouthwestFlorida Of course, Florida is an in-migration hotbed. Home price appreciation and rents are both 10%-20%+ year-over-year. Today’s LTR tenants seek: infill lots, more square footage, an extra bedroom / den, and grocery store proximity.   STR tenants want a pool. You really make your money November through April. LTRs have more recession resistance than STRs. LTRs have more predictable, year-round income. STRs often have $4,000-$5,000 a week of rent income. They have a 20%

Bitcoin Beach is a real world place. It’s in the tropics and has zero property tax. It’s on the Pacific Ocean. It reminds many of coastal California, but without the sky-high prices. Both bitcoin and the US dollar are legal tender here. Unlike the US, there is zero capital gains tax on bitcoin.  A beautiful 40-acre property is being developed on a hill overlooking Bitcoin Beach. Besides luxury homes, condos, and tiny homes, the property plan includes Pacific views from every unit. Home sizes can range from 300 sf up to 10,000 sf. Novel concepts are planned in the community: a gym that powers energy for bitcoin mining, earth embed homes, aquaponics eco-farm, orchards, gardens. More common amenities like a pool, restaurant, and bar are planned. Get started with Bitcoin Beach real estate at: https://gremarketplace.com/BitcoinBeach There’s an option for residency in a second nation for you. Resources mentioned: Get started with Bitcoin Beach real estate: https://gremarketplace.com/BitcoinBeach Show Notes: www.Get