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In this power-packed episode, Keith delivers a masterclass on the current real estate landscape, blending personal insights with market-changing trends. From the nuanced world of home flooring to the pulse of national housing markets, Keith breaks down complex real estate dynamics into actionable intelligence. The episode reveals a market at a critical inflection point: declining home sales, shifting apartment dynamics, and emerging investment opportunities. Keith provides listeners with a strategic roadmap to navigate these changes, emphasizing the importance of adaptability and informed decision-making. Exclusive Takeaway: Get Rich Education offers free investment coaching to help you turn these insights into wealth-building action. Your real estate success journey starts here. Free Resources: Connect with a free GRE investment coach at GREinvestmentcoach.com Show Notes: GetRichEducation.com/552 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com GRE Free Investment Coaching: GREmarketplace.com/Coach Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments: You get paid first - Text FAMILY to 66866 Will you please leave a review for the show? I'd be grateful. Search "how to leave an Apple Podcasts review" For advertising inquiries, visit: GetRichEducation.com/ad Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text 'GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript: Automatically Transcribed With Otter.ai Keith Weinhold 0:00 Keith, welcome to GRE. I'm your host. Keith Weinhold, there's been a real estate tragedy in my family. Then this past month, national home sales have plummeted to their worst level since 2009 then something is happening in the market for apartment buildings that shocked everybody and more all today on get rich education. Speaker 1 0:24 Since 2014 the powerful get rich education podcast has created more passive income for people than nearly any other show in the world. This show teaches you how to earn strong returns from passive real estate investing in the best markets without losing your time being a flipper or landlord. Show Host Keith Weinhold writes for both Forbes and Rich Dad advisors, and delivers a new show every week. Since 2014 there's been millions of listener downloads of 188 world nations. He has a list show guessing the top selling personal finance author Robert Kiyosaki, get rich education can be heard on every podcast platform, plus it has its own dedicated Apple and Android listener phone apps build wealth on the go with the get rich education podcast, sign up now for the get rich education podcast, or visit get rich education.com Speaker 2 1:09 You're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education. Keith Weinhold 1:25 welcome to GRE from Montreal, Quebec to Montrose, Michigan and across 188 nations worldwide. I'm Keith Weinhold, and you are back inside get rich education here in our 11th year, you're listening to one of America's longest running the most listened to shows on real estate investing, indeed, the 552nd consecutive week before we delve into the sad topic of terrible national home sales, the worst since 2009 which is a serious topic, first, a bit More of a light hearted topic, a real estate tragedy of sorts, has taken place inside my family, right inside my parents home, the same home that I grew up in. And you know, it's been a while since I had a good rant in an episode. So before we get to our core content today, my parents just replaced the nice, plush, warm, soft, inviting wall to wall carpets in both of their living rooms with laminate, hardwood floor. Oh no, this is disastrous. I mean, this is an abject property atrocity right in the home that I grew up in. Now, if you're a longtime listener, you know what I'm talking about. If you're newer here, it's probably been a couple years since I mentioned it. You know, everyone has their own quirks and idiosyncrasies, like you have certain ways of thinking about some things in your life, where you just know that you're in the minority of society with how you behave with that thing. Yeah, there are some things that you're counter cultural on. It's part of your unique personality, and it's what makes you you, well, one of my real estate idiosyncrasies and unorthodoxies is that I love deep, plush carpet, not hardwood floor, and hey, I don't expect you to agree with me on this. It's what makes me different. Now we'll talk about the flooring that you choose to use in your rental units in a moment and compare their prices and when you might want to use those things and when you don't. But we're just talking about home here, the flooring that you live on your primary residence. Why would anyone replace carpeting with hardwood, plank flooring? It is uninviting. It is cold, hard, and it even transfers noise more than quiet, comfortable, plush carpeting. And yes, hardwood floors can be heated. And some homeowners do that. They use what are called radiant heating systems, and they are installed beneath the floor, and these systems use either electric cables or sometimes mats or hydronic tubing, which are pipes filled with hot water in order to radiate that heat upwards into the floor. Now, something like that is what you'd be more likely to do in your own home, and not a rental unit, but even if you do that, hard floors are still, well, hard and noisier, like I just don't get it deep, plush carpet is superior. I'm not talking about the shag carpet that was popular 50 years ago, just plush carpet that hit its peak. In the 1990s Oh yes, that is the stuff I'm telling you. I mean plush carpet. That is the stuff that turns a house into a home. Well, my parents did just the opposite. They turned their home back into a house. Oh, dear. And, hey, it's their home. They can do whatever they want. Now, what are the main reasons that I hear about why people prefer laminate, hardwood flooring or luxury vinyl plank flooring over carpeting? That's what the majority of people want to do, and that's not what I want. Well, one reason, and this is the main reason that my parents did it, is that it looks nicer. In their opinion, looks nicer. I don't get it at all. I mean, even most cheap $1,000 apartments have been using like hardwood, plank flooring for close to 25 years now, there's nothing special about the way that it looks. Most of it anyway, some of it can look pretty cool. Now, some people want the hardwood because, well, they say that it's easier to clean. Easy to clean. Why in the world would you have trouble keeping your own home clean? I mean, if there's any space in the world that you keep clean, it is your humble abode. Now I know that it's easier for me to say that because I don't own any pets and still don't have kids, maybe you do replacing carpet for hard flooring is just an unspeakable act. What an uncalled for abhorrence, a repugnance. Other reasons that people say they prefer hardwood or vinyl plank over carpet is that it is allergy friendly. All right. Well, I don't have any trouble with allergies. But here's the thing that's even more confounding, most people that install a hard flooring. Well, the next thing that they do, and this is exactly what my mom and dad say that they're going to do next now that they put the hardwood floor in, is find some area rugs and cover it up so people put carpet on top of the hardwood floor anyway, but then yet, that carpet cannot be plush and padded underneath like real Carpet would be, because it's just like a piece that's rolled out, plus it cancels out, then all these pet friendly and allergy free benefits, plus it might be even harder to clean, because now you got to clean both the carpet and the edges of the room where the stupid hardwood flooring is showing I mean, it makes zero sense, so this just all compounds how I am confounded on how almost everybody in the world, it seems they want hardwood floor. I feel like I'm the only person in the world sticking up for carpeting. I do not expect you to agree with me here. It is just my, I guess, oddball preference. I also do a lot of exercises down on the floor. That's where the best high intensity interval training workouts take place. Down on the floor. Plush carpet is best for that too. Oh, the myriad reasons that carpet is superior, I'll tell you. Well, I'll next be staying at my parents place in two months, as I'll spend a lot of July there, and that's when I will first be witness to this transgression, this incomprehensible abomination. I mean, it is almost malfeasance. The reason that I care more about this than most sons of parents would is that my parents have lived in the same home since I was age one. I have a lot of memories there, and when I visit my parents in rural upstate Pennsylvania, I sleep in the same exact bedroom that I have since age one. Really special continuity there. What's more important than the flooring changing in the two living rooms is that, like I've told you before, I won the parent lottery, I did not have an affluent upbringing, but my brother and I had a top 1% childhood anyway, because we have two married, committed parents that are still together, still healthy and loved us. I phone my parents at least weekly, and I send them messages all the time. I guess it's a good time to think about that as this is the last episode before Mother's Day, and if you did not win the parent lottery, like I did in the way that I just described. Well, the good news is that you can do something about it. You can provide that same stable, nurturing environment to your children, and that way, they will win the parent lottery. Now, when it comes to. My rental properties, I do have hardwood flooring virtually everywhere and in every property, from single family rentals up to apartment buildings, because I don't have to live on it now, I probably do have some bedrooms in those rentals where there's carpeting, yeah, I mean hard floors that makes sense for the durability in a rental. I mean, with rentals, you might have to replace the carpet every three to five years. That is cost prohibitive. So for real estate investing, hardwood flooring, which, again, it's really a trend that became widespread in America about 25 years ago. I mean, that trend was really good for real estate investors. Tenants actually prefer this intolerable condition, perhaps much like you do. Now let me talk about five main types of flooring, how much they cost per square foot, and where you might want to use different flooring types in different situations, as we've already established. For me, it is carpet, carpet, carpet, wall to wall, everywhere, except for kitchens, bathrooms and maybe the laundry room. Seriously, though, for you and how you want to think about this and these prices include the total for both the material and the installation is for hardwood plank flooring, which is that atrocity that my parents committed. Expect to pay about $25 per square foot. And of course, all these costs are going to vary based on the wood species, the finish and the part of the world that you're in for LVP, luxury vinyl plank that's about $8 installed. LVP is a good choice because it mimics the hardwood esthetics. It's waterproof, and as you can see there, its cost is less than half of that of hardwood plank. So LVP can be a good choice for bathrooms and maybe a kitchen, and though the name luxury might be cheapened or diluted somewhat in that name, LVP, it's a bit over named. I suppose it's that that name is given to help distinguish it from vinyl flooring. Because when you hear the term vinyl flooring, what do you think of you think of sheets, something that comes in a roll in sheet vinyl only costs maybe about $5 installed. And then carpeting installed, my favorite at home, but not in rentals that costs about $6 per square foot. And then the last major flooring type is tile, and the cost of tile is really all over the place because of its different material types. Tile can be made of so many things, going from cheapest to most expensive ceramic. That's about $20 per square foot. Again, this is the cost installed for both the materials and the time it takes to install it, porcelain, 20 to 25 natural stone tile can be 40 bucks or more, and then glass tile can be a little more expensive than that, yet. So those are the approximate prices for your flooring, what you can expect to pay because, of course, plank flooring and tile, it doesn't have to be replaced as often as carpet and sheet vinyl. That's something to keep in mind when you think about those prices. But yeah, I have bought apartment buildings before, where, when I bought it, every unit was carpeted, and then as each tenant moved out, one by one, I would have my property managers contractor replace it with hard plank flooring, the radiant heat that you'd place beneath hard flooring that I described earlier, that is cost prohibitive to put in a long term rental in almost every case, that's something you'd only want to do in your own home, or maybe, just maybe a luxury short term rental in a cold climate, Like a ski resort town or something like that. So yes, you have now learned about one of my odd quirks, and you've learned about flooring types. Another of my idiosyncrasies is my preference for back scratching rather than massages. But that has nothing to do with real estate, and we've got more important topics to move on to heck. Come on, though, you might have some weird quirks, even more weird than mine. In fact, maybe real estate investors in general have more quirks than mainstream society. Because, you know, real estate investing is a little countercultural itself, right? We own things that pay us to own it every month with mainstream society and 401, KS, you have to pay it with every paycheck. Now. Who in the heck would do that? The title of this week's episode has to do with the fact that spring existing home sales are now at their worst level since two. 2009 the worst in all that time. Now, and understand when I say home sales, that means the volume of sales, the number of transactions. We're not talking about the prices now, the outlook for home prices is also less rosy now as well. I'll get to that shortly. But why are the number of property transactions at their lowest level in 16 years like this? Let's listen in to Diana Olick at CNBC. She's talking about March, but that's the newest month reported. You got to remember that real estate stats run in arrears more so than most essay classes. This report is a real bellwether for the spring housing market and how this year could turn out. This is a little over a minute, and then I'll be back to comment. We also have some housing data just cross the tape. Diana olik Has that for us. Diana, Well, David, existing home sales in March fell a much wider than expected, 5.9% from February to a seasonally adjusted annualized rate of 4.0 2 million units sales down 2.4% from March of last year, and that is the slowest March sales pace since 2009 the Great Recession. Now remember, this count is based on closing, so its contracts likely signed in January and February, when mortgage rates were over 7% but it was before the market volatility of April, supply is rising fast, 1.3 3 million un…
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