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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.

Latest Episodes:

437: NYC Real Estate is Absurd Feb 20, 2023

Show notes

New York City real estate has distinctions and quirks that you'll find almost nowhere else in the world.

Is it unreal estate?

This includes: super skyscrapers, air rights, apartments with doormen, co-ops, pencil buildings, and rent control.

Can you actually make money in NYC real estate?

Incredibly, the national or world capital of all these are in NYC: banking, finance, communication, advertising, law, accountancy, fashion, arts, architecture, media, and more.

1 in 18 Americans live in the NYC metro area. The population is growing.

Guest Beth Clifford joins us.

She has an impressive set of experiences, including on Wall Street, with startups, and as an international real estate developer. Beth is a former NYC resident.

Beth describes: how "air rights" are really development rights, pencil buildings, which apartments have doormen, and more.

There's a short-term rental arbitrage strategy in NYC where you could make money. But is it legal?

Join Thursday, Feb. 23rd's GRE Live Event for Philadelphia, Pittsburgh and Baltimore properties. Ask me questions live. It's free. Register now at: GREwebinars.com.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/437

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE

or e-mail: info@RidgeLendingGroup.com

Memphis property that cash flows from Day 1:

www.MidSouthHomeBuyers.com

Find cash-flowing Jacksonville property at:

www.JWBrealestate.com/GRE

Book recommendation:

Economics in One Lesson

Find NYC apartments:

StreetEasy.com

I'd be grateful if you search "how to leave an Apple Podcasts review" and do this for the show.

Top Properties & Providers:

GREmarketplace.com

Best Financial Education:

GetRichEducation.com

Get our wealth-building newsletter free—text 'GRE' to 66866

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

@getricheducation

Keith's personal Instagram:

@keithweinhold

Welcome to GRE! I'm your host, Keith Weinhold. New York City real estate is just absurd. It's also really interesting and has distinctions and quirks that you'll find almost nowhere else in the world.

We're talking about air rights, skyscrapers, apartments with doormen, co-ops, rent control, and how do you actually make money in NYC real estate? Today, on Get Rich Education.

Welcome to GRE! From Jamaica, Queens to Lower Manhattan. Across New York City and 188 world nations, this is Get Rich Education. I'm your host, Keith Weinhold.

As we're talking about NYC real estate today, I think it can be regarded as exotic and Manhattan is the CENTER of American urban excitement from Times Square to the Statue of Liberty to the address "One World Trade Center" and more.

It wasn't always this way.

As the story goes, in 1626 - about 400 years ago - Indigenous inhabitants sold off the entire island of Manhattan to the Dutch for a tiny sum: just $24 worth of beads and "trinkets."

At that time, it wasn't known as New York. It was called "New Amsterdam".

Today, NYC is the national or the WORLD capital of: banking, finance, communication, advertising, law, accountancy, fashion, arts, architecture, media, and more.

How could so much be in one place? Well, all this attracts a lot of people.

In fact, the NYC metro area population last year was almost 19 million, that's up just about one-quarter of 1% from the previous year. So COVID hasn't killed it.

This means that more than 1 in 18 Americans live in the NYC Metro.

Now, of the 5 boroughs, we're really focusing on Manhattan today, since that's where space is at a premium, hence that's why the tall skyscrapers are there.

In fact, I have counted 17 skyscrapers that are all more than 1,000 feet tall - that's almost one-fifth of a mile tall.

Now, Manhattan is crammed with such high density - and it isn't just commercial space. Of course, residents live on Manhattan too.

But it is so crammed for space in Manhattan - and even in places of the four outlying boroughs, that it can kind of obscure your vision such that you don't have the - I guess - wherewithal that you would elsewhere.

Here's what I mean. Just last month I met a guy that has lived all of his life in NYC - part of his life in Brooklyn and part of his life in the Bronx.

He did not realize that when he lived in Brooklyn, he was living on an island. I don't know how long he lived in Brooklyn, but I found a gentle way to tell him, without making him feel unintelligent - that yes, Brooklyn and Queens are both on LI.

That's why you have all those bridges in NYC, like Brooklyn Bridge. They connect the islands.

Now, when it comes to rental property there, New York State has had the longest history of rent control in the United States, since 1943. The majority of those units are in NYC.

I have never seen one piece of evidence that rent control works long-term. If you have, please share that resource with us at GetRichEducation.com/Contact

When you put a ceiling on the amount of rent that can be charged like this, what tends to happen is that landlords have zero incentive to improve the property when they can't charge more rent… or else soon, LLs would be losing money.

In many cases, soon properties and entire areas can become dilapidated because they haven't been improved, and in bad cases, tenants don't want to move out. They'd like to keep the cheap rent even if they need to tolerate increasingly squalid conditions in these neglected properties.

A classic economics book really outlines the rent control problem wonderfully. Though the author isn't that well-known, Henry Hazlitt's "Economics in One Lesson" really breaks down the problems with rent control terrifically.

That entire book basically outlines how programs like rent control only benefit a small group of people for a short period of time… like, oh, let's give these people a break & be nice so that they can afford to pay the rent.

At the same time, you're NOT playing nice to the property owner.

And how benefits to a small group of people in the short-term harms everybody long-term. Many will tell you that's the case with… rent control.

Shortly, I'll talk with an experienced developer, knowledgable about NYC development, she also used to live in NYC.

Wait until you discover some of the complexities of getting things build there. I expect her to share that.

She'll tell us about things that you would never think of, like how… whether or not there are windows on the side of the a building indicates whether or not there's a development opportunity there.

I'll have her describe what "Air rights" are. Property "air rights" are not what you think they are. You'll need to listen closely to that part as I expect explaining "air rights" involves somet math.

You'll learn about what "skinny skyscrapers" are and why they don't they build those wider.

NYC has coops - cooperatives. They're different from a condo. In a co-op, you buy shares in a corporation that gives you certain occupancy rights.

So rather than having fee simple title, you're the shareholder of a corporation rather than having a title like you do with condos.

And you've got to give the co-op board your income & taxes… because the corp wants to be sure you'll be able to pay. And if the co-op board doesn't like you dog or like you for whatever other reason, maybe they won't let you join.

If you're perusing apartments to rent in NYC - esp. Manhattan - some have a doorman and some don't have a doorman. Why might it be desirable to have a doorman, when that's not even offering in a place like, say Minneapolis or Houston?

I'll ask our guest, "Is there any way you can make some real estate cash flow here."

So, I'm often the one doing the teaching here on the show. But in just a few minutes, I expect to get some learning myself as we discuss the unique and unusual nuances of NYC real estate.

First, how long have you been listening to the GRE Podcast?

Well, that was a recent question in our Instagram Poll.

Now, the sample size wasn't that huge and the our average Instagram follower might be a more avid podcast fan that the average.

But with the question asked, "How long have you been listening to the GRE Podcast?" The results were:

Under 1 Year = 11% of respondents have been listening for that length of time.

1-3 Years = 32% of you

3+ Years = 43% of you have been listening for that length of time.

And EVERY SINGLE episode since 2014, yes, that is all 437 episodes. That comprises 14% of you.

So that's about 1 in 7 listeners - at least in this poll - have listened to every single show. I'm really grateful for that. To shout out a sampling of those that have listened to every episode, that includes Kirby, Jacob, and Stacio.

I'm deeply grateful for that. I still of new people that find the show here today & then want to go back and listen to every single episode.

That is humbling indeed.

NYC Real Estate is absurd. That's next. I'm Keith Weinhold. This is Get Rich Education.

______________

Yeah, great stuff from Beth there… and hey, a good investment to the global elite might be different than what you perceive as a good investment.

If you've got $250M to place and you don't need the cash flow, you just want RE for the proven inflation hedge that it is, then drop it all into a Manhattan skinny skyscraper and leave it vacant. Some people can afford to do that.

It was good to learn that the term "air rights" is misleading. It's really about "development rights". That's probably a better way to remember it.

Now, when it comes to real estate in the northeast, Boston, NYC, and Washington DC real estate and their outlying areas really aren't known as what we'd call "cash flow" markets.

But three other cities in the region are - Philadelphia, Pittsburgh, and Baltimore.

Our Mid-Atlantic provider even sees properties where the price is around 100 months' rent. Yes, the property price is just 100X the monthly rent amount. That is impressive.

That means that with just a 20% down payment, you can expect your monthly rent income to often exceed all the monthly expenses, even your mortgage payment.

Well, I'm going to discuss this at a live event on Thursday night, just 3 days from now. That is Thursday, February 23rd at 9 PM Eastern, 5 PM Pacific.

Yes, this live event is your opportunity to ask us questions live, and that it will be the first time ever that our in-house Investment Coach, Naresh, & I are both there, together, to help you, along with the provider in these mid-Atlantic markets.

Again, it will be in just three days, Thursday, February 23rd at 9:00 PM Eastern. It is completely free. Sign up now at GREwebinars.com

The nation's capitol, Washington DC, has a strong influence beyond the Mid-Atlantic region. The Baltimore metro area is slowly merging with the DC metro.

Droves of Americans work in DC and live in Baltimore. It's a short commute and offers more space and affordability.

And then, with Pennsylvania being my home state, Philadelphia and Pittsburgh and have similar advantages. We're talking about…

Diverse economies
Advantageous geographies
Reasonable cost of living
And substantially more landlord-friendly to you than NYC

Yes, GRE is hosting a live show on these markets. And typically on these action-oriented live events, we have a few real property addresses of freshly-rehabbed properties with tenants already placed, PM already in-place if you so choose and more.

We'll make it real with real, actual addresses. You could reserve a few if you so choose.

Tune and don't miss:

The Professional Turnkey Provider Introduction
We'll have market talk on Philly, Baltimore, and Pittsburgh
And look at that active inventory.

Hey, special thanks to the extraordinary knowledgeable Beth Clifford today.

Now, unless you have $250M to sink into skinny Manhattan skyscrapers, then…

I hope & am looking forward to seeing you on Thursday night for some of the best ratios - rental properties with a high rent income in proportion to a low purchase price.

Rather than $250M, it'll take as little as $30K for a down payment and closing costs on some of these properties at Thursday's live event.

Amidst this continued scarce supply of inventory in America, we've pulled some strings and found a good selection for you in Baltimore, Philly, and Pittsburgh.

This GRE live event takes place Thursday February 23rd at 9:00pm ET.

I'll see you there. It's free. It's interesting and it promises to be lucrative for you.

Until then, I'm your host, Keith Weinhold. Don't Quit Your Daydream.

436: Home Prices are Falling. Will it Continue? Feb 13, 2023

Show notes

I get political today. But first, I discuss jobs. How far will home prices fall? Innovation creates jobs. It does not destroy jobs. American innovation is one reason that we added over a half million new jobs just last month. All this new job growth and a robust GDP reading will keep us out of a recession for the next few months, maybe much longer. Both the US median home price (Case-Shiller) and inflation peaked last June. The US median home price fell 2.5% from its peak. Where are they falling? Where are the rising? We explore experts' outlook for home prices. Five expert opinions all range from 2023 home prices rising 5% to falling 4%. Volatile, coastal markets are correcting down a little. Many stable markets in the Midwest and South are stable or rising a little. Beware of those that say, "It's never been a better time to buy real estate." That's wrong. 2012 was better. 2021 was the worst time to buy real estate recently. Even these past few years, and today, it's hard to find a better place to put your investment dollar than carefully-bought income property. This won't last long. At GREmarketplace.com now, providers are often giving buyers 2% of the purchase price as cash at the closing table and free Property Management for two years. Resources mentioned: Show Notes: www.GetRichEducation.com/436 Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE or e-mail: info@RidgeLendingGroup.com Memphis property that cash flows from Day 1: www.MidSouthHomeBuyers.com Find cash-flowing Jacksonville property at: www.JWBrealestate.com/GRE I'd be grateful if you search "how to leave an Apple Podcasts review" and do this for the show. Top Properties & Providers: GREmarketplace.com 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 Keith's personal Instagram: @keithweinhold Welcome to GRE! From ANNapolis, MD to Santa ANA, CA and across 188 nations worldwide. I'm Keith Weinhold, Forbes REC member and founder of this very platform here… and this is Episode 436 of the Get Rich Education audio podcast. If you'd like to watch me on video, check out the Get Rich Education YouTube Channel. But our audio show, right here, is our most popular platform. Is the world trying to tell me that my voice is better than my face, then? That's what I'm starting to think. Ha! ARE American home prices are falling. How bad is it? When did it start? And when will it stop? I'm going to answer all of that in just a bit. Last week, I mentioned that a strong GDP report has told so many permabears and gloomer-and-doomers that they were wrong about being in a recession by now. And gosh… the latest Jobs Report came in after that and it just added insult to injury for all these permabears - meaning those that are permanently bearish - permanently making dire predictions about the economy & housing. And, even if you're listening to this show years from now, this is how you know that a recession is NOT at all imminent. The whopping 517,000 new jobs added last month nearly tripled expectations. Still... I wonder if constant rumors about a coming recession will drag on longer than the fake meat fad. These recession rumors keep getting stirred up. Now, when it comes to jobs. You care about that a lot as a REI. You need your tenant to have a job in order to pay you the rent. The number of American jobs saw their recent low in 2020. In fact, they fell into a deep trough - a BIG dip back then. That was the pandemic shutdown. People had to stay home. The government paid workers to stay home. Maybe you were paid to say home then - about three years ago. Well, that means that a lot of goods weren't being produced in 2020. Many services weren't being produced either. Well, when MORE stimulus-fueled dollars began chasing FEWER goods, that's exactly what began stoking the inflation fire for the next few years, right up to & including now. That's where the monetary inflation came from. That's why I've regularly been paying $8 for a bottle of good quality salad dressing. Aren't you doing some of these things? Yeah! Hey, what's wrong with you? In today's polite society, you aren't adding a 25% tip for your $6 bottle water? No, I hope you're not. I'm not doing THAT yet. Ha! Well, that was when jobs cratered, in 2020. By today, with all of these American jobs roaring back, total jobs are now 2.7 million above pre-pandemic levels. There's now just a 3.4% unemployment rate. That is just really hard for the doom-and-gloomers to deal with. That's the GOOD news. Though more jobs are good news, it's not all good. The bad news here is that strong employment means more inflationary pressure. To that point, Jerome Powell recently said that Americans should expect a couple more interest rate hikes to keep combating inflation. Not everything is all good in the good ol' USA. I mentioned some of the economy's other problems last week. But what's the reason for all this job creation? Why is this happening in America? In a word, it is American innovation. Innovation creates jobs. Now, there might have been one point in your life when you thought that innovation DESTROYS jobs - like, for example, with the fact that today's bank tellers and grocery store cashiers are disappearing. Innovation does not destroy jobs. Innovation creates jobs. We'll like at why shortly. But first, the Global Innovation Index was released and it shows that America is the 2nd-most innovative nation in the entire world. Yep, of 193 UN-recognized world nations, the US is only second to Switzerland. People have falsely believed that innovation destroys jobs since before the tractor replaced horses and mules. Yep, last century, one new tractor replaced five horses or five mules and that meant that it soon took fewer farmers to feed the animals, because fewer animals were needed. For the ultimate result & outcome, look no further than where you are today. We are more technologically advanced than at any time in human history. The result is that we have 11 million more jobs than available workers. It's kind of the opposite of unemployment. Innovation is what got us here. Twenty years ago, no one could have foreseen ALL of today's new job opportunities as a: drone operator, quantum machine learning analyst, YouTube creator, a podcaster, social media director, app developer, information security analyst. New jobs that didn't exist before, like a digital marketer, TikToker, metaverse wearables developer, and on and on. Well, that right there is evidence that in twenty years, it's hard to foresee what new jobs WILL exist that don't exist today. But they WILL be created. Even eBay, which some regard as a "digital yard sale" company - though they're more than that. But eBay just announced new hires for Web3 and NFTs—those fields barely existed two years ago. In a few years, when self-driving cars replace Uber drivers, those driver jobs will simply migrate to better-and-higher uses, just like it did for jobs of a bygone era like telephone switch operators & travel agents & bowling pin boys & and elevator lift attendants. But people will still fear for the "loss of jobs". Don't fear for a loss of jobs. Fear for a loss in innovation. American innovation drives all this job growth. So the fact that we aren't having a recession anytime soon is really frustrating for all the permabears. I wouldn't totally count it out that we could have a mild recession LATER this year. But not soon. Politics is another sad reason that people create gloom & doom-type of media. Some people wanted to WISH a recession into existence since last year, especially leading up to last year's mid-term elections because they wanted to sow seeds of fear because they didn't like the political party in power. People think that if they can just convince enough people that there's a recession, then they can topple the current administration. Then if that incumbent administration gets toppled and THEIR people are now in power, even if it doesn't change anything in the economy, that same recession-promoter will stop promoting a recession because they got their political wish. It's politically-driven. I don't do that here. I don't do left-right politics. Instead, I do up-down. Up is integrity. Let's go up. I first heard that up-down framework from Dr. Chris Martenson - someone I really respect. We had him on the show a couple times here. How do you do up-down instead of left-right? Follow people that you disagree with on social media for some new perspectives. Trying watching some YT channels that you don't agree with. Even delete your YT history & start over if that does the trick. Today's suggested video and social feeds can often keep people in one narrow "think" silo. So two big reasons that crash bros have been wrong are discounting American innovation and being blinded by politics. OK. Well... so what? I mean… really… like… who cares? What if gloomer-and-doomers plow ahead with more fear-mongering headlines like: "giant crash ahead", "total market collapse" or "massive depression coming"? How does that really hurt anyone? Like I briefly mentioned last week, it matters because it keeps us living in fear. Your brain's amygdala is wired to be stimulated by danger, alerting your nervous system. Has all that dreary material from some other sources talking about crashes and depressions and collapses even made you want to... quit your daydream? You'll never get that lost time back. Permabears rarely admit that their dire predictions were wrong. They'll just go on making more intransigent apocalyptic forecasts in order to get clicks. People have been predicting the end of the world exactly since... the beginning of the world. Let's bring some balance here. Let's talk about both the bad news and the good news. If you & I believed all the bad news, a meteor would have plummeted from the sky and struck us both dead by now. That's why some people with their constantly dire predictions want you to think. It's the old school media notion of "If it bleeds, it leads." Don't believe for one second that I think that America's powers that be are all 100% responsible & looking out for your best interest. Janet Yellen recently said: "You don't have a recession when you have 500,000 jobs and the lowest unemployment rate in more than 50 years." Yes, that's what Treasury Secretary Janet Yellen said, who, as longtime listeners know, I have called "Grandma Yellen" because she looks like my late Grandma Weinhold. C'mon - she just looks like a Grandma. Nothing wrong with that - she looks like a sweet ol' grandma. I've definitely disagreed with her in the past. That is, I've disagreed with Yellen, not my Grandma. Ha! But Yellen is right on this one. And yes, Yellen works for the president. But she's not the only one who's starting to see the possibility of a recession becoming less likely. Economists at Goldman Sachs lowered their estimate on the possibility of a recession in the next year from 35% down to 25%, and that is thanks to the strong labor market. A 25% chance of a recession this year, though some forecast it higher than that. Speaking of the President, I was hoping that one Joseph Robinette Biden, Jr. would have talked about housing more in last week's SOTU address that he delivered. In any case, the strong labor market is keeping us out of a recession. And MY take is that job strength is underscored by a legacy of continued American innovation. But we won't play the Star-Spangled Banner again this week like we did last week… emmm because some of those jobs are part-time jobs. Coming up straight ahead - some bad real estate news - what about those falling American home prices? Learn more about GRE and how our mission helps you achieve financial freedom - not debt freedom - but something more important - financial freedom - at our educational website, GetRichEducation.com Follow Get Rich Education on your favorite social media platforms - Instagram, TikTok, Facebook, LinkedIn, Twitter and YouTube. On most every social platform, our name is Get Rich Education. Pretty easy to remember! We are easy to find on social. Might I first suggest our YouTube Channel. That's where you'll get some great, free in-depth learning, including where we're about to release a video of me shopping in grocery stores in various US states - yes pushing a shopping cart through the aisles - for evidence of inflation and what that means to you. Look out for that on our Get Rich Education YouTube Channel. More straight ahead. I'm KW. This is GRE. _________________ Last week, I told you why I don't expect our core markets to see much price movement in the near term. By our core market, that's residential properties that are lower-middle class up the median in the US Midwest & South - which I call the stable markets - as opposed to the volatile, coastal markets. As a real estate investor, you may very well care about the state of rent growth and occupancy rates so prices might not be the #1 thing, but they still matter to you. Well, both US home prices and inflation BOTH peaked in June of last year. The fact that last June was the peak of US home prices is per the widely-cited Case Shiller National Home Price Index. And since then, national home prices have corrected back… 2.5%. Yes, down two-and-a-half percent from their price zenith, eight months ago. Yes, a rare period where home prices have NOT appreciated. Redfin recently told us that of the 50 most populous cities in the nation, the 10-11 that have fallen the most over the past year (so this is annualized here) - and I'm just rounding to the nearest whole percent here are: San Francisco - home values are down 10% YOY Sacramento, California: down 6% San Jose, California: down 6% Los Angeles, California: -5% Oakland, California: -4% Seattle, Washington: -4% Pittsburgh, Pennsylvania: -4%. I'm a little surprised at Pittsburgh. I just visited Pittsburgh a few months back and I don't know why they're down 4%. I might research this. Austin, Texas: down 3%. Not a coastal market, but a market that overheated in the pandemic runup. New York City -3%. Phoenix, Arizona: -2% Let's get an 11th city in there with Boston, Massachusetts: -2% Alright, so, it's chiefly volatile coastal markets that have experienced the price correction to this point. Most of those are mild. The only one down more than 6% is SF at 10%. But how far do they fall… in those high-priced, volatile, mostly coastal markets. And, hey. You can go back to this show from its beginnings in 2014 and 2015 and this is why I told you that we avoid the high-priced, volatile markets here - most of them coastal. They don't cash flow. Their values aren't stable, and their LL-Tenant laws don't favor REIs at all. This is just what I've been talking about for over 8 years now - all on record - right here on this show. Alright, well that's backward-looking. For some forward guidance, I told you about MY price forecast last week. Here's what some OTHER influential figures have to say about the future direction of the national median home price for this year: CoreLogic expects a 2.8% increase. Deputy Chief Economist at Redfin, Taylor Marr is forecasting a 4% drop in the median home price compared to 2022. Chie…

Full show notes at the publisher

435: Big Real Estate Prediction, How to Analyze Deals Feb 06, 2023

Show notes

Learn my new outlook for 2023 and 2024 home prices.

First, I follow up on my real estate prediction of 9%-10% appreciation for last year. You learn exactly how I performed.

Why aren't real estate prices expected to rise or fall substantially in the near future?

Affordability is an upside constraint to home price growth. Low supply protects against a substantial price downside.

So many have wrongly predicted a recession by now. (I have never said any such thing.) The latest GDP and jobs numbers beat expectations, frustrating gloom-and-doomers.

It's even possible that the Fed engineers a "soft landing".

Not all is well. 64% of Americans live paycheck-to-paycheck. America has galactic-sized debt. We have a labor shortage. Inflation is still high.

Mortgage rates have hit a five month low, now near 6%.

There are three ways you can save thousands of dollars in today's real estate market.

1 - Many sellers are crediting income property buyers 2% of the purchase price at the closing table. You can use this to buy down your interest rate.

2 - Free property management for up to 2 years.

3 - Rent guarantee. This means that if your property is vacant, the seller pays rent until the property is occupied.

The third one above is the only one expected to last long-term.

On your next income property purchase, our free in-house Investment Coach can help you get these incentives. Start with Naresh at: GREmarketplace.com/Coach

Hayden Crabtree, founder of My Property Stats joins me.

His real estate deal analysis software helps you organize your existing real estate portfolio and analyze future deals.

He's also a successful author and specializes in RV & boat storage properties.

GRE listeners get a 10% discount on his real estate analysis software at MyPropertyStats.com/GRE. Use Discount Code 'GRE' for 10% off your first year.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/435

GRE listeners get a 10% discount My Property Stats

real estate analysis software:

MyPropertyStats.com/GRE

Get started with our free coaching on your next

GRE Marketplace income property purchase at:

GREmarketplace.com/Coach

RE values rose 10.2% in 2022: https://www.cnn.com/2023/01/20/homes/existing-home-sales-december/index.html

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE

or e-mail: info@RidgeLendingGroup.com

Analyze your RE portfolio at (use code "GRE" for 10% off):

MyPropertyStats.com

Memphis property that cash flows from Day 1:

www.MidSouthHomeBuyers.com

I'd be grateful if you search "how to leave an Apple Podcasts review" and do this for the show.

Top Properties & Providers:

GREmarketplace.com

Best Financial Education:

GetRichEducation.com

Get our wealth-building newsletter free—text 'GRE' to 66866

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

@getricheducation

Keith's personal Instagram:

@keithweinhold

434: Should You Invest in Detroit? Jan 30, 2023

Show notes

Really… Detroit? It's in America's cash-flowing Midwest. But is there a stigma involved? Does it matter?

In the 1950s, Detroit was the wealthiest city in the entire world, led by the manufacturing and automotive industry.

But it endured a horrific economic and population downfall late last century due to aging manufacturing plants, high taxes, overregulation, poor services, corruption, and lack of public administration.

Detroit even filed for bankruptcy.

Between 2010 and 2020, the population of the Detroit Metro grew 2%+, per the US Census Bureau.

Time magazine named Detroit one of the World's 50 Best Places To Live—one of just five US cities.

Our own COO, Aundrea Newbern, MBA, recently chose to move to the Detroit Metro.

The average Detroit income property from today's guest provider rents for $1,100 to $1,200 and costs about $120K.

These are renovated single-family homes, often brick.

The Big 3 auto manufacturers are all headquartered in Michigan today.

Detroit's substantial employment sectors today include: manufacturing, automotive, engineering, IT, medical, trade & transportation, technology, and finance.

The income property provider is aware that Detroit has a stigma. They encourage you on an in-person tour. Get started at: GREmarketplace.com/Detroit

Often, you're buying property at less than replacement cost.

This provider encourages buyers to do independent third-party property inspections first. (I love this!)

If you'd like to learn more, start at: GREmarketplace.com/Detroit

Resources mentioned:

Show Notes:

www.GetRichEducation.com/434

Explore Detroit income property:

GREmarketplace.com/Detroit

Detroit makes TIME's 'World's Greatest Places' list, 1 of only 5 US cities:

https://time.com/collection/worlds-greatest-places-2022

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE

or e-mail: info@RidgeLendingGroup.com

Analyze your RE portfolio at (use code "GRE" for 10% off):

MyPropertyStats.com

Memphis property that cash flows from Day 1:

www.MidSouthHomeBuyers.com

I'd be grateful if you search "how to leave an Apple Podcasts review" and do this for the show.

Top Properties & Providers:

GREmarketplace.com

Best Financial Education:

GetRichEducation.com

Get our wealth-building newsletter free—text 'GRE' to 66866

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

@getricheducation

Keith's personal Instagram:

@keithweinhold

433: Beginner's Guide to Real Estate Investing Jan 23, 2023

Show notes

Learn the beginner's mistakes to avoid. Is setting up a real estate LLC even worth it? Learn how to build the right credit score for a mortgage loan, including why you actually don't want a score over 800. If a cash flowing property is so great, why would anyone sell it to you? I outline a myriad of reasons. Should you make a lowball offer to a real estate seller? Learn negotiation techniques. Earnest money procedures are covered. The real estate buying process is slow. From the time that you make the offer, it can often take over 30 days to close the deal. Once your offer is accepted, I recommend a professional third party inspection. It can cost you $300 to $500 for a single-family income property up to $1,000 for a fourplex inspection. I cover property appraisals and how they verify the quality of the bank's collateral. Learn how to get a good feel for your property manager and what their duties are. I discuss the Management Agreement between you and your manager. Be sure to tell your insurance provider that this is a rental property, not your primary residence. A mobile notary meets you at your home, workplace, airport, or even a restaurant in order to complete the paper-and-ink closing process. This wraps up the deal. Get started with income property at: GREmarketplace.com. For free coaching to help get you started, contact our free Investment Coach, Naresh, at: GREmarketplace.com/Coach Resources mentioned: Show Notes: www.GetRichEducation.com/433 Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE or e-mail: info@RidgeLendingGroup.com Analyze your RE portfolio at (use code "GRE" for 10% off): MyPropertyStats.com Memphis property that cash flows from Day 1: www.MidSouthHomeBuyers.com I'd be grateful if you search "how to leave an Apple Podcasts review" and do this for the show. Top Properties & Providers: GREmarketplace.com 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 Keith's personal Instagram: @keithweinhold Welcome to GRE! I'm your host Keith Weinhold, here to help BEGINNING Real Estate Investors Today. The biggest beginner mistakes to avoid, when you make an offer - can you lowball a turnkey provider, and all those buyer steps like LLCs, mortgage pre-approval, inspection, appraisal, and closing. Today, on Get Rich Education. _____________________ Welcome to GRE. From Athens, Greece to Athens, Georgia and across 188 nations worldwide. The voice of REI since 2014. This is Get Rich Education Podcast episode 433 - and this is your Beginner's Real Estate Investing Audio Guide. Hi, I'm your host Keith Weinhold. We're talking about how to get into long-term buy & hold RE investing - and that's because it's the most generationally-proven way to build wealth. First, let's talk about a couple of the biggest mistakes that real estate investors make - it's being invested in only one geographic market. Often, that's the market that they just happen to live in. There is more risk with being in only one market than most realize, because you're now tied to the fortunes or misfortunes of just one area's economy. Another substantial, common real estate investor mistake is that they continue to hold onto one - I'll call it - special - property in their portfolio that they usually need to get rid of - but they have either sentimental ties to it - or they just hold onto it for convenience, and do you know what that property is? I'm actually talking about a specific property here. It's the home that YOU YOU USED TO LIVE IN yourself. Well, what's wrong with renting out the home that you used to live in yourself? You might still have the preferable owner-occupied financing locked in on that one - and afterall, that's a better rate than you could get on a non-owner-occupied rental. The problem is that the property probably doesn't perform BEST as a rental. But you might be clearing, say $600 per month by using your former primary residence as a rental today. Look, for you, it's often about the cash flow - and yes, it is about the cash flow. But there's something even more important than cash flow - that's because nearly any property will cash flow if the loan were paid off. That's why it's really more specifically about the rent-to-price ratio of a property. If you're renting out the home that you used to live in, and it wasn't strategically bought as a rental, if your rent-to-price ratio is 0.4%, meaning that for every $100K in value it has, you're only getting $400 of monthly rent income, then you're losing cash flow dollars every year - and every month. Look, let's give a real life example of the .4% RV ratio. Say that you can get $2,000 rent out of that $500K property that you used to live in. But instead, three $150K homes bought strategically as rentals can have a combined rent income of $3,000. So it's either one $500K property at $2,000 of rent income. Or three $150K properties at $3,000 of rent income. So you're losing $1,000 dollars of cash flow every month - by not buying and owning strategically in markets in the Midwest and South where the properties make sense as a RENTAL on the day that you buy it. Your primary residence only made sense as a primary residence on the day that you bought it. Now you can see that the only reason that you still own it, is because you defaulted and "fell" into it. Don't fall into things. Often, you want to be intentional. You are a better investor when you're intentional rather than emotional. It's even better for you now. Beyond your $1,000 of additional cash flow with some repositioning, now, with three properties instead of one - now you've also taken care of the first real estate investor mistake that I mentioned. WITH three rentals rather than one, now you can be diversified across multiple markets. Two birds are killed with one stone. Now with some re-positioning, you've increased your cash flow by $1,000, AND you're in multiple markets. One property isn't divisible. And this $1,000 of monthly cash flow example is small. Of course, the differences can be greater than this. We're talking about real estate investing for beginners today, so let me clearly guide you through step-by-step on just how you go about buying your first property - writing an offer, getting an independent third-party property inspection and vetting your Property Manager which is known as due diligence, then the appraisal, and onto closing and receiving cash flow from the tenant. As you'll see, much of today's show pertains to any investment property at all. But we're talking mostly about how to buy what are known as turnkey homes, especially homes outside your home market - as most of the best deals are not found where you live. Turnkey means three basic things. #1- You buy a property that's either brand new construction or fully renovated. #2- A tenant is placed for you - and you get to approve them. And #3- the property is held under management for you from Day 1 - if you so choose. Like they say, the best investors live where they want to live, invest where the numbers make sense. Today's content is primarily geared toward United States real estate investors - but those that live outside the United States will benefit here too. You might want to buy a property in the US. Here's a question that you might have - "How do I go about setting up an LLC - a Limited Liability Company - to hold my investment property in?" I'll tell you - I don't think "How do I set up an LLC?" is the best question to ask. The best question to ask is, "Should I set up an LLC?" The three main reasons people set up an LLC are for either anonymity, tax purposes, or asset protection. Now, if you know that you WANT to set up an LLC - I've done four episodes on that topic with Rich Dad Legal Advisor Garrett Sutton. You can go to GetRichEducation.com, type "Garrett Sutton" in the search bar, and those four episode numbers will appear so that you can listen. He was just on the show with us 9 weeks ago on Episode 424. But the reason that the question is, "Should I even SET up an LLC?" is because: Setup of LLCs complicates your life. Maintaining a registered agent, Articles Of Incorporation, having separate accounts, tracking expenses with separate credit cards, paying annual fees for everything - depending on how many LLCs you have and how you structure your life - it can wear you out. The second reason you should ask yourself, "Should I even set up an LLC?" is because you might not have many assets for a litigant to go after. Retirement accounts have certain protections already. Equity in a property could be low-hanging fruit for a plaintiff attorney if someone gets a judgment against you. But since the Return From Equity is always zero, what would you have much equity in a property anyway? The third reason you should ask yourself, "Why should I even set up an LLC?" is that frivolous or slip-and-fall type of lawsuits are rare. Not only have I never been a party to one, I've never even heard of any investor friend or associate having one - and I talk to a lot of people. You probably haven't heard of one either. Now, note that I'm not saying you can't get an LLC or shouldn't get one. I'm saying, prioritize those questions to yourself. First, it's "Should I get one?". If that's a definitive "yes", only THEN ask: "How do I set one up?" Why do you think you have to? Did some attorney use fear tactics to get you to? If the result of the LLC's administrative overburden provides a greater reward in the form of asset protection, anonymity, or tax benefit - which is typically a flow-through taxation type anyway, you might then … get an LLC. So, as a beginning real estate investor, understand that real estate is a credit-based asset - meaning it's usually bought with a loan. So let's talk about getting your finances in order before you contact a lender or select an income property. That begins with you having enough cash liquidated for a 20% down payment on the property - add about 4% for closing costs, depending on the state that you're buying your property in - and on the lowest-priced property that's still in a decent area of a low-cost city - which might be a $100,000 property … 24% of that then is about $24,000 that you'll need. You should have some extra on top of that as reserves. Now, let's look at another part of your finances - your DTI - your debt-to-income ratio. It cannot exceed 43% to 45% - maybe up to 50% in some circumstances. So if your monthly minimum debt payments - everywhere in your life - housing payment, minimum credit card payments, minimum car payment - if that sum is $5,000 and your gross monthly income is $10,000 - that's a 50% DTI. You can't exceed that. Of course, before a bank is willing to loan you money, they want to have a reasonable assurance that you aren't weighed down with debt elsewhere because their fear factor goes up that they won't get paid back. Next, let's talk about your credit score. We dedicated an entire episode to this back in Episode 54. If you can remember back that far, Philip Tirone was here with us and you learned more about credit scores that you probably ever thought you would … … and he even went on to call the credit scoring system a total scam. He was quite opinionated - it was interesting and eye-opening, but ... Playing within the scam here - as it might be. There are many different credit scoring models, but the FICO Score - F-I-C-O - is a respected one that you're probably going to see your mortgage lender use. It stands for Fair Isaac Company. Their credit scoring range is 300 - the worst, up to 850. 850 is essentially a perfect score. Importantly, 740 is the highest score that helps you here. If you have a 782 or an 836, it doesn't help you qualify for the loan or get you a lower mortgage interest rate or anything else. 740 is where you're optimized. Now, just a quick overview of FICO credit scoring ... There are five primary ingredients that make up your credit score. In order of importance, they are your payment history, amounts owed, length of your credit history, new credit, and finally credit mix. That first one, Payment History, is the most heavily weighted one. It's 35% of your score. As you might expect, the repayment of past debt is a major factor in the calculation of credit scores. It helps determine your future long-term payment behavior. Both revolving credit (i.e. credit cards) and installment loans (i.e. mortgage) are included in payment history calculations. Although installment loans like mortgages take a bit more precedence over revolving credit - like credit cards. This is why one of the best ways to improve or maintain a good score is to make consistent, on-time payments. The next way, your Amounts Owed – 30% This category is basically credit utilization or the percentage of available credit being used - or borrowed against. Credit score formulas "see" borrowers who constantly reach or exceed their credit limit as a potential risk. That is why it's a good idea to keep low credit card balances and not overextend your credit utilization ratio. So if you've got just a $1,000 balance on a credit card with a $10,000 credit limit, that's seen as a good ratio. You're staying well within your limits then. The third FICO credit score ingredient is the Length of your Credit History – 15% This factor is based on the length of time all credit accounts have been open. It also includes the timeframe since an account's most recent transaction. Newer credit users could have a more difficult time achieving a high score than those who have a long credit history. That's because if you have a longer credit history, FICO has more data on which to base their payment history. The fourth of five FICO ingredients is your "Credit Mix" – Now we're down to an ingredient only comprising 10% of your score. Credit mix just means that it helps your score if you have a combination of credit cards, retail accounts, installment loans, finance company accounts and mortgage loans. Finally, "New Credit" makes up the last 10% of your FICO score. Don't open too many new credit accounts in a short period of time. That signifies a greater risk to lenders – and that's especially true for you if you're a borrower with a short credit history. And you sure don't want to open up any new lines of credit, down the road when you're in the qualification process for buying a new property unless you check with your Mortgage Loan officer first. Now, those five factors have been weighted the same for quite a few years. Knowing what factors make up your FICO® Credit Score can help you qualify for more loans and get better mortgage interest rates. That's the bottom line. This helps you get pre-qualifed or pre-approved with your Mortgage Lender. To get prequalified, you just need to provide some financial information to your mortgage lender, such as your income and the amount of savings and investments you have. Your lender will review this information and tell you how much they can lend you. After pre-qualification, you can seek the higher-level status and that is getting pre-APPROVAL for credit. Pre-approval is better than pre-qualification. If you think about it, it makes sense. Qualifying for anything…

Full show notes at the publisher

432: Everyone is Secretly Moving Here, Should You Rent or Own Your Home? Jan 16, 2023

Show notes

Everyone is moving here. Where is "here"? You get an answer that you never expected.

Among those that move, it's not for job-related reasons. It's housing-related.

The American mobility rate has declined from 20% in the middle of the last century to 8.4% today. Learn three reasons why more Americans are staying in-place.

Lower domestic migration can have positive results like: less stress, more community formation, longer tenancies, and a boon for the remodeling industry.

The negative impacts include headwinds for real estate agents and mortgage loan companies.

Should you rent or own the home that you live in?

Learn 18 rent vs. own trade-offs.

Paying rent is NOT the same as throwing money away.

Join me live on tomorrow's webinar about car wash cash flow. You can ask me questions. Register free now at: www.GREwebinars.com

Resources mentioned:

Show Notes:

www.GetRichEducation.com/432

Join me live on tomorrow's car wash webinar:

GREwebinars.com

Most Americans Couldn't Afford To Buy Their Own Home Today: https://thehill.com/policy/finance/3791139-most-americans-couldnt-afford-to-buy-their-own-home-today-survey/

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE

or e-mail: info@RidgeLendingGroup.com

Analyze your RE portfolio at (use code "GRE" for 10% off):

MyPropertyStats.com

Memphis property that cash flows from Day 1:

www.MidSouthHomeBuyers.com

I'd be grateful if you search "how to leave an Apple Podcasts review" and do this for the show.

Top Properties & Providers:

GREmarketplace.com

Best Financial Education:

GetRichEducation.com

Get our wealth-building newsletter free—text 'GRE' to 66866

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

@getricheducation

Keith's personal Instagram:

@keithweinhold

431: Panama Coffee Farm Investing—Struggles and Opportunities Jan 09, 2023

Show notes

What happens when a real estate investment goes sideways?

An international business was impacted—Panama coffee farms.

The pandemic disrupted coffee supply chains and labor. Erratic weather affected crop yields.

It's been about four years since we've discussed this on the show.

The Panamanian government shut down many businesses. There was little or no government assistance for idled workers.

The co-founder explains Panama coffee problems and opportunities.

Learn why the coffee parcel deed issuance has been slow for investors.

There's a new distribution partner going forward, named Typica. They help sell the coffee.

This is all high-end, specialty coffee, like the geisha variety.

Coffee farm parcels are in the volcanic soil highlands of western Panama, near Boquete. It's shade-grown.

The provider has acquired their 12th coffee farm. If you'd like to learn more about the investment, start at GREmarketplace.com/Coffee

There are upcoming group tours in March and May.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/431

Learn more about Panama coffee farm investing:

GREmarketplace.com/Coffee

Get mortgage loans for investment property:

RidgeLendingGroup.com or call 855-74-RIDGE

or e-mail: info@RidgeLendingGroup.com

Analyze your RE portfolio at (use code "GRE" for 10% off):

MyPropertyStats.com

Memphis property that cash flows from Day 1:

www.MidSouthHomeBuyers.com

I'd be grateful if you search "how to leave an Apple Podcasts review" and do this for the show.

Top Properties & Providers:

GREmarketplace.com

Best Financial Education:

GetRichEducation.com

Get our wealth-building newsletter free—text 'GRE' to 66866

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

@getricheducation

Keith's personal Instagram:

@keithweinhold

430: The Most Important Question in the Investing World Jan 02, 2023

Show notes

Answer this one question and you won't have money concerns for the rest of your life. The Dow Jones once fell so hard that it didn't recover for 25 years Japan's NIKKEI peaked in 1989 and still has not recovered. I discuss the differences between an economic recession and depression. During the 2008 housing crisis, national housing values only fell 19%. Originally, 401(k)s were called "Salary Reduction Plans". They had to scrap the name to foster participation. Some investing questions are: How do I max out my 401(k)? How can I attend my dream college? How can I become a millionaire? After building context, I reveal the most important question in the investing world. Learn how to keep emotions separate from investing. The vital question is: "Will this property secure an income stream?" Resources mentioned: Show Notes: www.GetRichEducation.com/430 National Median Home Prices: https://fred.stlouisfed.org/series/MSPUS Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE or e-mail: info@RidgeLendingGroup.com Analyze your RE portfolio at (use code "GRE" for 10% off): MyPropertyStats.com Memphis property that cash flows from Day 1: www.MidSouthHomeBuyers.com I'd be grateful if you search "how to leave an Apple Podcasts review" and do this for the show. Top Properties & Providers: GREmarketplace.com 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 Keith's personal Instagram: @keithweinhold Full transcript: Welcome to GRE! I'm your host, Keith Weinhold. Happy New Year! What is the most important question in the entire investing world? It is a vital one - and this coming year makes it as relevant as ever. Asking yourself this question & answering it can make you wealthy - and you've probably never even heard this question before. That & loads of financial education, today on Get Rich Education! _____________ Welcome to GRE! From Lake Champlain, NY to Lake Charles, Louisiana and across 188 nations worldwide, you're listening to one of America's longest-running and most listened-to investing shows. I'm your host. My name's Keith Weinhold. I'm grateful to be here myself. Thank you FOR being here… and you aren't here for me. You're here for you… so let's build your wealth today. What's the most important, vital, essential, and almost MANDATORY question in the investing world today? While you're thinking about that, let me build some context so that it makes sense. Now, why don't we discuss stocks more on the show here? When most people hear the word "investing", they might think of stocks first. Their mind might shoot there immediately. When someone refers to the market, they just simply say, "the market", they typically mean the stock market, like the DJIA or the S&P 500. Look, with persistently higher interest rates, it's likely that economic headwinds are still coming. Now, what if things got worse than a recession and we entered a depression? I'm not saying that it's likely, but let's look at what CAN happen because this actually HAS happened. What can happen in a depression?! The stock market falls and doesn't recover for 25 years. That's not a guess. That really happened in the United States! Yes, the DJIA peaked in 1929. The market crash hit. These were the times of "The Great Depression". Stocks lost nearly 90% of their value. Yes, 90%. That means that after a loss like that, stocks would have to rebound 9X, 900% just to get back to even. Well, I told you that the US stock market crashed in 1929. The Dow didn't fully recover until late 1954. Yes, 1929 to 1954. That is fully 25 years… just to get back to even. 25 years of zero gain. It HAS happened, right here in the USA, the most powerful nation in the world. Well, you might wonder… ah, c'mon, could that really happen to any major stock market in an ADVANCED economy today, in more modern times, even if things got really bad? Oh, yes, things don't even have to get really bad. Understand that the third-largest economy on earth, still to this day is Japan. Japan's NIKKEI peaked in 1989. It still hasn't recovered from its high 34 years ago. Yes, that's the MAIN stock market index for Japan - the Tokyo Stock Exchange. That's still going on right now, today. It still hasn't recovered back to its 1989 level. It's not even close today. So it doesn't even TAKE a depression for those stock market calamities to occur in major world nations' stock markets. Well, what's the difference between an economic recession and a depression? The short story is that a recession is a substantial downturn in ONE nation's economy, and an economic DEPRESSION is widespread across many nations. And there are some other distinctions. Right? And the old joke is that a recession is when your neighbor loses their job and depression is when you lose YOUR job. Well, what about real estate? Real estate values don't always go up. What happened to real estate in its ugly downturn about 15 years ago where we had a mortgage meltdown from liar mortgage loans and a glut of housing supply? (neither of which are happening now, BTW) During the ugly Global Financial Crisis in & around 2008 & 2009. Well, during that time, real estate went down 19% nationally. Yes, on a nominal basis, the national median home price was down 19% from $257K down to $208K. That's it? Maybe you're thinking, "that's it"? 19%. This is when everything was going wrong for housing and it didn't even reach 20% bear market territory fifteen years ago. And btw, I will put the link to the chart that shows this in the Show Notes for you. Yes, we really do put links in the Show Notes for you when I tell you that we will. Haha! You can see that at GetRichEducation.com/430 This is episode 430 of the GRE Podcast, so just go to GetRichEducation.com/430 to see today's resources and today's show notes also, you have access to an entire transcript - all of the lyrics… like we do for some of our episodes here. So that if you have a deaf or hard of hearing person in your life, they can, I suppose "read" today's show rather than listen to it. Or maybe you want to read along as you listen… or read after you listen in order to reinforce your learning. Now, at the start of the recession in 2008, the national median housing value was $234K… and it took all of but four years to recover and exceed that level. Yes, from the start of the GFC, housing values only took four years to recover. The source of that information is the Census Bureau & HUD. That data is also available for you in the Show Notes at GetRichEducation.com/430 So the point is that real estate or stocks can lose value. But real estate is substantially more stable. If you buy RE in a good market and you have an average or better PM (meaning they're "just OK" with screening tenants), then you can sleep well. It's hard to lose big. You might not even be in real estate for the values. You might be in it for the cash flow. This is helping you build context and provide you with a clue about The Most Important Question in the entire Investing World. While you're still pondering what that question might be, because I'll build some more context for you so that this question makes complete sense… and let's start to isolate it here. Real estate builds wealth. Stocks though, can maintain wealth after you've built it. But you've got to build it first. So that's why this most important investing question today… isn't about stocks. Well, what about stocks or mutual funds in a retirement plan? Is that more relevant? Enjoy the compounding growth on PRE-tax dollars & all that. Take stocks' 10% return and like I detailed two episodes ago, adjust that down for inflation, emotion, taxes, fees, and volatility… and what do you have left? I'll tell you what the key question is not. How can I max out my retirement plan? Oh geez. The new annual contribution limit to 401(k)s this year is $22,500 BTW. I'll admit, I used to have a day job and I maxxed out my retirement for a few years before I realized that maxing out my retirement… … was minimizing my present. And minimizing next year, and minimizing next decade, and minimizing my life for decades until I hopefully was still not just alive… but actually healthy enough to truly enjoy DEFERRING my quality of life all those decades. Maximizing your retirement contribution means that you're living a SMALLER life for decades. The risk of delayed gratification is denied gratification. Now there IS something to be said though, for the psychological benefit of you having something saved for the future, even if it certainly diminishes your life in the near-term. Instead, with income property, I discovered that I can invest in something that pays me an income stream TODAY… without jeopardizing my future one bit. In fact, I'm paid an income stream TODAY AND I will get a better return than my 401(k) long-term and the tax benefits too. Today's mainstream media tells you that it's a bad time to buy real estate because prices & interest rates are up in the past year. But they're talking about primary residences. Instead, with rental property, your tenant pays all of your mortgage principal & interest for you & all of the operating expenses & a little on top of that called cash flow. So "How do I max out my retirement?" That is not a great investing question. You're contemplating how to defer your quality of life, delay your standard of living, and live a life of less. Now, here's another bad question. I heard a teenager say this the other day, "I want to attend my dream college." "How can I attend my dream college?" Dream college? What? College is still necessary for some skilled professions. But like we touched on last week here on the show, the value of a college degree is down yet the price of a college degree is up. That's why enrollment has been steadily declining since 2012. But, even worse, "How do I attend my dream college?" Who would even ask that question? It COULD matter whether you have a degree or not. But no one cares what school you went to. No one cares what your college grades are either. The last time that you went to go see the doctor, do you feel like you got a good quality of care from them or not? That's what you REALLY care about. Did you want to know what college or medical school your doctor graduated from before you saw them? Do you even know what college they went to? It doesn't matter. Did you ask your medical doctor about what their college GRADES were? See. It doesn't matter. Now, I actually don't think college is a complete waste. I got a 4-year-degree. I learned some things. But it wasn't the most efficient use of my four years. But "dream college"? Who cares? Not a good question. "Attend My Dream School". It makes no sense. Here's a third question that is NOT the best question that you can ask yourself in investing today: "How Can I Become A Millionaire?" Ugggh. Awful question. I think that longtime listeners know where I'm going with this one. But let me update it because we've had some substantial inflation for almost two years now. Let me tell you - you don't want to be a millionaire. The definition of a millionaire is not someone that makes a million dollars a year. It's having a million dollar net worth. So if you add up the value of all of your assets and it totals 1-and-a-half million dollars and then add up the sum of your debts and that a HALF million dollars. Well, your net worth is 1.5 million in assets minus a half million in debts which equals 1 million. That is not where you want to be. Now, maybe if your 75 years old and you think you've got ten years left to live, you could live a somewhat modest life on a million dollars. But, as you can see, that's not where most people want to be. Inflation has rendered the term "millionaire" nearly to middle class now. The middle class is getting eaten by wages that don't keep up with inflation. A single millionaire will probably be a POVERTY marker within my lifetime. Now, if you're a millionaire that has $200K of CASH FLOW each year, that's different. That's better. Net worth is not as important a measure as your residual income stream. But just a millionaire? Wrong trajectory. Avoid. Avoid. Avoid. So maxxing out retirement plans, attending a dream college, or setting out to be a millionaire are all losing financial plans… and they are all losing life plans. We are building some context and eliminating some paradigms as I'll soon posit "The Most Important Question in the entire Investing World". There is one question that can make you wealthy - and you've probably never heard this question before. And if you act on the ANSWER to this premium best investment question to ask yourself… you probably won't have money concerns for the rest of your life. I think it'll all make sense when I reveal it later today. While you're been thinking about it, I've been building some context and a foundation about why this question matters, and why those other ones don't. If you're new to the show, again, I'm Keith Weinhold. I'm a 20-year REI in the US. I am an active member of the Forbes RE Council. I write all of our articles on GetRichEducation.com too. I'm also a financial columnist for the Epoch Times. I host this weekly Get Rich Education podcast every single Monday - this show right here. We don't miss shows. I have never missed a week. And we also don't replay old shows. Fresh material here for you every single week. Most every financial influencer has been here with me as a guest on the show, running alongside me, including Robert Kiyosaki, Grant Cardone, Jim Rickards, Chris Martenson, T. Harv Eker, most anyone that you've heard of. Besides writing for GetRichEducation.com, Forbes and Epoch Times, I also write our weekly "Don't Quit Your Daydream" newsletter that I send directly to you. Then, I am the "talent" - if you can call it that - that's what it's called in the industry "the talent". It makes a slackjaw like me feel uncomfortable saying it. I am the "talent" on the Get Rich Education YouTube Channel as well - building your wealth over there. I also host webinars to help you get started with real estate. That's where we look at actual addresses together and more. That's something that we just began a few months ago. I am also your instructor for a fastcourse that I made specifically for you at: GetRichEducation.com/Course Those five course videos that average just 12 minutes each could comprise the most powerful and impactful 1 hour of investing instruction that you will ever see. That's free, again, at GetRichEducation.com/Course When you know what you're doing in real estate, you're often getting paid five ways. And when you're profiting like this, you're not tempted to cut corners. When you're not cutting corners, you are providing others with good housing. Let's do good in the world. Provide good housing and let's abolish the term "slumlord" in this nation. Everything that I do here is completely free for you - every single thing that I just mentioned is free. If you like o…

Full show notes at the publisher

429: Are Rich People Greedy? Dec 26, 2022

Show notes

Greed is defined as an "intense and selfish desire for something, especially wealth, power, or food".

Should wealth be redistributed so that everyone is equal?

"I have never understood why it is "greed" to want to keep the money you have earned but not greed to want to take somebody else's money." -Thomas Sowell

When I was a fresh college graduate, I resented the rich. I discuss the catharsis that made me change my mind.

Our guest, Doug Casey, believes that college reinforces the wrong wealth mindsets.

Today, one often hears that one should "pay their fair share" of tax. What does this really mean?

If one obtains wealth with integrity, that wealthy person makes everyone else wealthy. I give the example of Jeff Bezos and Amazon.

Learn why Doug believes that Social Security is a redistribution scam.

Resources mentioned:

Show Notes:

www.GetRichEducation.com/429

Learn more about Doug Casey:

www.InternationalMan.com

His YouTube show is: Doug Casey's Take

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.com

Analyze your RE portfolio at (use code "GRE" for 10% off):

MyPropertyStats.com

Memphis property that cash flows from Day 1:

www.MidSouthHomeBuyers.com

I'd be grateful if you search "how to leave an Apple Podcasts review" and do this for the show.

Best Financial Education:

GetRichEducation.com

Get our wealth-building newsletter free—text 'GRE' to 66866

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

@getricheducation

Keith's personal Instagram:

@keithweinhold

Partial transcript:

Welcome to GRE! I'm your host, Keith Weinhold. Should we "eat the rich"? Are wealthy people greedy? And where does that belief come from? Should everyone be financially equal and taxed equally too. I answer, "Are rich people greedy?" Today, on episode 429 of the GRE Podcast.

Welcome to GRE! From Hartford, CT to Weatherford, TX and across 188 nations worldwide. You're back where FF beats DF. I'm Keith Weinhold. This is Get Rich Education. Welcome to the last show of the year.

Are rich people greedy?

First, what's the definition of greed? Well, the world's best known search engine puts the Oxford dictionary definition at the top.

Yeah, I think this is a good definition. It says greed is:

An intense and selfish desire for something, especially wealth, power, or food. That's the definition. And then the example of the use of the word in a sentence is "mercenaries who had allowed greed to overtake their principles".

You know, the example really hints that greed is a corruption of sound morals or principles in order to get more for oneself.

Greed is not good.

Now, for some reason, actors and entertainers can make gigantic salaries and high-flying paydays but people don't seem to resent them as much as entrepreneurs or CEOs that make a lot of money.

For some reason, the actors and entertainers as seen as lovable and the entrepreneur or CEO is deemed greedy.

Recently, soccer star Cristiano Ronaldo became the highest-paid athlete ever at $200M per year.

Yankees slugger Aaron Judge $360M over nine years.

Those athletes entertain others. I like watching sports. But I don't know that they're advancing society like the innovation that Steve Jobs brought to Apple.

Yet it seems like an entrepreneur could get more criticism.

Now, there are bad examples too. I specifically remember when Shark Tank's Kevin O'Leary criticized crypto. Then he seemed to do a 180.

Later, we learned that Kevin O' Leary accepted $15M to promote the crypto company, FTX, that had horrible financial records and was committing fraud.

Was O'Leary greedy?

Then you & I need to ask ourselves, if YOU were offered $15M to do crypto commercials, then would you be incentivized to put your $15M on-hold while you did due diligence on a company that even had pro sports arenas named for them.

So, when we think about what is & what isn't greed, you also need to think about what YOU would do in these situations & hope that YOU would do the right thing. I do too.

Do the right thing before you do things right.

And, as you know from being a listener to the show here, I don't take money from just ANY sponsor. They must be aligned with GRE's mission here of financial freedom over debt freedom and prioritizing ideals like cash flow and prudent use of leverage.

Most of my income does not come from the sponsorship of this show, not even close, so I can BE selective.

But what if that were one's primary income source. You can begin to understand how they would be less selective. Could THAT degrade into greed?

Now, when it comes to wealth, poverty & greed, think through the prism of "redistributions of wealth".

And, in just a minute here, this is going to lead us to the greatest quote about greed that you've ever heard in your life.

How about something like college student loan forgiveness, which, depending on the borrower's status is up to either $10K or $20K. It looked like that was going through and then it got held up in the courts.

Well, what about those that didn't go to college because they didn't want debt.

But now, if every American effectively gets taxed at a higher rate to pay for student loan forgiveness, then the people that decided not to go to college in order to avoid the debt have to pay for those that did decide to go to college & take on the debt.

Now, as you hold that thought, here is what American economist and academic Thomas Sowell said about greed. Sowell said:

I have never understood why it is greed to keep the money you have earned but not greed to want to take somebody else's money.

Yeah, gosh that's good. And the first time I heard that years ago, I found it remarkably thought-provoking.

Therefore, you can at least ask the question then, just posit the question, is it greed for someone to EXPECT student loan forgiveness?

Well, International Man Doug Casey is waiting in the wings here. Later on the show, he & I are going to volley this "eat the rich" topic back & forth.

BTW, have you ever realized that no one wants to be called rich or poor. If you call someone "rich", they're uncomfortable and they like to spurn what you just said.

If you call someone poor, that's seen as a pejorative & quite hurtful.

Everyone wants to be known as middle class. No one want to be called rich or poor - but almost anyone would rather have more money than less.

The song says, "Mo money, mo problems." But I think most people would accept $10M if you offered it to them right now. Yeah, I'll try living with that problem.

Well, when Doug comes on with my shortly, I'll tell you about my cathartic experience with "Are wealthy people greedy" - and how my turning point was about that light bulb moment with regard to "opportunity".

Virtually all 8 billion people on this earth have the opportunity to make their life better.

But I think it's important to acknowledge that some people have more opportunities than others.

The United States is one world nation with more robust opportunities than average.

Look, if you were born in the US, or even if you emigrated to the United States, globally, you won the "opportunity lottery".

That's because the US only has 4% of the world's population.

It's not much different in Canada, which has less than 1% of the world's population.

Then, within the US, I won what I call the "parent lottery". No, it is not because I was born wealthy. I was not. Not even CLOSE.

It's because I was born to two parents that provided a stable home, were married & committed to each other before they had me, and nurtured the environment where I could thrive & fail & succeed & learn and not have to deal with dysfunction of any kind.

I'm really grateful for that.

Now, what about real estate investors today? Do you deserve to prosper?

Think about how made time to listen this show because you care about your future.

Your future is worth caring about… because you're going to spend the rest of your life there.

Then you established good credit in order to get a mortgage loan.

Then you took on the risk of repaying a mortgage loan.

Then you took on property owner risk during COVID and inflation and a possible recession… all to do good and provide housing for others.

So… do you deserve to prosper and build wealth for doing all of that for others? For strangers even?

Hey, if you did, you overcame many people's almost inherent laziness. Got up early, worked hard at times, took risk, how about confronting your PM? Or confronting your tenant?

If you learned how to make the world a better place & helped others, is that greed to prosper? No. Not at all.

Our guest, prolific author & thought influencer, International Man Doug Casey, I saw in an article where he quoted his contemporary Rick Rule. Rule said: "Eat the rich. Prepare to starve."

That gives you a clue as to where Doug Casey is coming from. That's straight ahead.

I'm Keith Weinhold. There will only ever be one GRE Episode 429… and you're listening to it.

428: Essentials of Real Estate Wealth-Building Dec 19, 2022

Show notes

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 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.com

Analyze your RE portfolio at (use code "GRE" for 10% off):

MyPropertyStats.com

Memphis property that cash flows from Day 1:

www.MidSouthHomeBuyers.com

I'd be grateful if you search "how to leave an Apple Podcasts review" and do this for the show.

Best Financial Education:

GetRichEducation.com

Get our wealth-building newsletter free—text 'GRE' to 66866

Our YouTube Channel:

www.youtube.com/c/GetRichEducation

Top Properties & Providers:

GREmarketplace.com

@getricheducation

Keith's personal Instagram:

@keithweinhold

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