Podcasts about Daydream

Register here to attend the live virtual event "Why Central Florida is the Year's Most Compelling Housing Market" on Thursday, February 19th at 8pm Eastern. Keith explores how a shift in mindset can change the way you build wealth, why so many new landlords are entering the market, and what recent economic trends could mean for future rents.  You'll also hear how one Florida investor is navigating a changing housing landscape, and learn about a timely opportunity in one of the country's fastest‑growing real estate markets—all without needing to be a hands-on landlord. Resources: Register for the event at GREwebinars.com Episode Page: GetRichEducation.com/593 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com GRE Free Investment Coaching: GREinvestmentcoach.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  For predictable 10-12% quarterly returns, visit FreedomFamilyInvestments.com/GRE or text  1-937-795-8989 to speak with a freedom coach 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— GREletter.com  Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript:   Keith Weinhold  0:01   Welcome to GRE. I'm your host. Keith Weinhold, the risk of delayed gratification is denied gratification. There's a new wave of landlords. Wages are rising faster than both inflation and home prices. Learn what that's going to mean for rents. Hear the voices of five different Federal Reserve chairs, then GRE announces our biggest event of the year, and you're invited today on get rich education.   Corey Coates  0:32   Since 2014 the powerful get rich education podcast has created more passive income for people than nearly any other show in the world. This show teaches you how to earn strong returns from passive real estate investing in the best markets without losing your time being a flipper or landlord. Show Host Keith Weinhold writes for both Forbes and Rich Dad advisors and delivers a new show every week since 2014 there's been millions of listener downloads of 188 world nations. He has a list show guests include top selling personal finance author Robert Kiyosaki, get rich education can be heard on every podcast platform, plus it has its own dedicated Apple and Android listener phone apps build wealth on the go with the get rich education podcast. Sign up now for the get rich education podcast or visit get rich education.com   Keith Weinhold  1:16   mid south home buyers, with over two decades is the nation's highest rated turnkey provider, their empathetic property managers use your return on investment as their North Star. It's no wonder smart investors line up to get their completely renovated income properties like it's the newest iPhone headquartered in Memphis, with their globally attractive cash flows, mid south has an A plus rating with the Better Business Bureau and 4000 houses renovated, there is zero markup on maintenance. Let that sink in, and they average a 98.9% occupancy rate with an industry leading three and a half year average renter term. Every home they offer you will have brand new components, a bumper to bumper, one year warranty, new 30 year roofs. And wait for it, a high quality renter in an astounding price range, 100 to 150k GET TO KNOW mid south enjoy cash flow from day one at mid southhomebuyers.com that's mid southhomebuyers.com   Corey Coates  2:19   You're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education.   Keith Weinhold  2:35   Welcome to GRE from the Adriatic Sea to the Atlantic Ocean and across 188 nations worldwide, I'm Keith Weinhold, and this is get rich education. Sometimes we all need a mindset reset, and this can include me. Sometimes. James clear, the author of atomic habits, says there are four types of wealth, financial wealth, which is money, social wealth, which is status, time, wealth which is freedom, and physical wealth, which is health. Be wary of jobs that seduce you with one and two but rob you of three and four. That is to say, be careful with jobs that seduce you with financial and social wealth but rob you of time and physical wealth that is definitely going to happen to you during your life, especially early in your working career. But many people, even most people, they don't do much about this. They just go on and on, selling their soul to their employer for decades. Sometimes paychecks aren't compensation. They're a bribe from an employer to give up your dreams early in your career, delayed gratification actually makes some sense, because you need capital formation, you need down payments, you need dry powder. That is totally fair and the time in your life for delayed gratification. But there's a point that most people miss, the point where delayed gratification quietly mutates into denied gratification. This is huge. Most people miss this inflection point. When is this point in your life? That's when I'll do it later becomes, well, I guess I never did it at all. They look up at what they've got at age 65 and realize that they have a respectable title. They still wear Dockers pants. They have a 401, K that they must start paying tax on, and knees that creak louder than. The front door. Compound Interest hardly outpaces taxes and inflation. That's just going to keep you in one spot, you know, and you're never going to get that time back. There is no do over there. So you need to get to the point where you can be more frugal with your time than your money. Younger people have a harder time adopting this mindset, and that's a little natural, because they have more time and less money. Sooner than later, you must desperately get financially free so that you can simply be your self workaholics, optimize income instead of assets, and you can't let that happen, because labor does not compound and capital does compound, your quality of life will exceed your cost of living when your life is funded by what you own, not by what you do that takes a different mindset. You can either be a conformer or you can build wealth when you invest in real estate that pays five ways. It's like what you're doing is buying future Tuesdays, where you never have to work again and then later, add on future Wednesdays, where you never have to work again because you got the compound leverage instead of the impotent compound interest. I mean, just consider your two and a half million dollar portfolio that is passively doing the same work as someone who sells 40 to 50 hours a week of their life away for 100k in yearly salary. All right, maybe you're thinking, Oh, that all sounds thought provoking, but if you're not engaged on that, it can sound airy and philosophical and even risky. It's sort of like, yeah, you're cueing the acoustic guitar music and slow motion images of someone pensively gazing at a sunset.   Keith Weinhold  7:12   All right, what is the concrete plan? It's not all about mindset. It only starts with mindset. You got to make that actionable. Well, we constantly provide concrete plans for you here on this show, and I've got another concrete plan for you toward the end of the show today. This harkens back to what I discussed with you seven weeks ago, seven episodes ago on the show. That's when I discussed the world's first billionaire, John D Rockefeller and his enduring quote from about 100 years ago, he who works all day has no time to make money. Yeah, that's the quote a little review. What you learned seven episodes ago is that Rockefeller meant, if you spend your life doing tasks, you're never going to rise high enough to own things that pay you for life. The bottom line here is that earning a living is a distinctly different activity than building wealth. That's what we're talking about here.    Keith Weinhold  8:14   Well, there is a new wave of landlords entering the market, and they are reshaping what owning rentals looks like. One survey by rental platform avail of nearly 2000 users. It's really influential. It found that 53% of landlords became landlords in the last five years. So you have a lot of new landlords with the most 17% of landlords entering the market in just the last year, most purchased a property specifically to rent it out, and 1/3 sort of backed into this business by renting out their former residence. Of course, some people want to rent out their former residence today, if they got locked into that sexy owner occupied three and 4% financing from 2022 and earlier, the survey went on to tell us with some really good takeaways here, 72% of landlords manage between one and four units, and this avail survey. I mean, it's just another one that shows that the majority of landlords operate small portfolios, classic mom and pop investors. That one's not too surprising. The top three reasons that landlords gave for entering the rental market, they're pretty interesting. The number one reason for getting into this at 41% of respondents is building long term wealth. Next 33% for generating passive income, and the third most popular one, it's a distant third, it is preparing for retirement at 13% so building long term wealth is the number one reason for getting into this, and that is the right reason. Them when it comes to ownership structure, 64% said that they own the property individually, whether that's through a single member LLC or in their own name, doing it, yeah, individually, rather than with a family member or a business partner. So really, the summary of this terrific, recent avail landlord survey is that if you're just getting started, you're not alone. A lot of people are most own properties solely in their own name, and the number one reason for doing it is to build long term wealth. Now there's another pervasive set of economic trends out there in the broader economy, but it's really a benefit for real estate investors, and that is the fact that wage growth has now outpaced consumer price growth for three years. Yeah, another way to say that is that wage growth has outpaced inflation for fully three years. Yeah, most people just aren't feeling it yet. So you might be taken somewhat aback by that, and why aren't people feeling that wage growth is faster than inflation, the pandemic inflation spike that was so huge, it was like getting hit with a freight train, and then someone tells you, good news, the train has stopped. Yeah, that's nice. You are still lying on the tracks, rubbing your ribs. That's because we're all still absorbing spiked prices for everything from a lumber two by four to a York Peppermint Patty, year over year, wages are up 3.8% and consumer inflation is 3% All right, so wages above inflation, that means things are getting a little more affordable, but both wages and inflation have grown faster than home prices, which have only grown about one and a half percent, and this is all per the BLS in the FHFA, so wage growth Being more than double home price growth. Well, that trend really makes properties more affordable, but historically, they're still not that affordable. Everybody knows that home prices soared until about 2023 that was the turning point, and now wages are in their catch up phase. All right, but what really matters to real estate investors is, when will this wage growth translate to rent growth, historically, big rent growth that lags big home price growth by about two to four years. So you have the big home price growth, big rent growth hits two to four years later, historically. Now, if that holds true, we should finally see substantial rent growth this year or next year. Rent growth has still been pretty soft in the one to four unit space, and even there are rent decreases in the overbuilt apartment space. Future income growth promises to make homes more affordable. Affordability has already improved, with mortgage rates hovering near three year lows. There's one problem, though, that most people overlook, and that is this wage growth has been skewed toward the higher income deciles, renters, especially workforce renters, they don't feel it until later. So this 3.8% wage growth, it's heavier for higher income people, and it's lighter for lower income people. I swear, when there are enriching economic trends, it always hits the higher income people first, and it doesn't trickle down until later. So if you as an investor, are positioned before the rent wave hits, you are surfing, and if you wait to feel it, you're swimming behind the boat. Higher wages should translate to higher rents in the next one to two years. And as far as some other forces, as we all know, the man occupying the oval office in the White House, the President, he wants lower rates. The current Fed Chair isn't so willing to do that. The next one, the one he appointed, Kevin Warsh, who arrives in May. He seems more receptive to lower rates, but it's gonna take a while. It all moves so slow. We have had 16 fed chairs before worsh over 112 years. And look how much of an econ nerd Are you? Are you as bad as me? These voices are in chronological order, and I can name each speaker.   Corey Coates  14:47   You're going to have to live with the fact that forecasts have a range of uncertainty, irrational exuberance.   Corey Coates  14:54   In my opening remarks, I'd like to briefly first review today's policy decision, but   Corey Coates  14:58   first I'll review recent. Economic developments in the Outlook, and we are well positioned to wait to see how the economy evolves.   Keith Weinhold  15:06   If you can name each of those speakers, I would love to give you a free property from gremarketplace.com but I can't quite swing that in order. Those voices are Paul Volcker. He served from 1979 to 87 he was known for crushing double digit inflation by jacking rates to near 20% it was painful medicine, but it worked the next one. Alan Greenspan sir, from 1987 to 2006 that was a long reign, almost 20 years. He oversaw the 90s economic boom, the.com bubble and the early housing bubble. Years so far, Greenspan is the only Fed chair that I have met in person. Then Ben Bernanke, he was the Fed chair from 2006 to 2014 he took the helm right before the 2008 financial crisis. He rolled out QE and emergency lending on an historic scale. In fact, he was nicknamed helicopter Ben because it's like he would print so much money that he just dropped it out of huge sacks, dollar bills in huge sacks, dropping them from an airplane, metaphorically, not literally. Then Janet Yellen, 2014 to 2018 she kind of continued this post crisis normalization, and she was the first woman to chair the Fed and then, of course, Jerome Powell serving from 2018 to 2026 he navigated the covid stimulus, ultra low rates. And then after that, the fastest rate hiking cycle in decades to fight inflation back in 2022 being the Fed chair is the most important job in this economy, and over the decades, there's been more of a movement of the fed into the public eye. You just hear about them more in the media than you used to. But like I touched on last week, it just still doesn't mean as much to real estate investors as a lot of people think, people sometimes look for someone else to come save them, but it's more about you and the choices that you make that's what means more housing supply and demand means more real estate investors have profited during every one of those Fed Chair reigns, which go back almost 50 years from Volcker to today, I think everybody knows that fed chairs don't control property prices, and they don't even control long term interest rates. What's a little paradoxical is that Trump has been vocal about how he wants more affordable home prices, yet at the same time he wants existing homeowners to have their home prices go up, those two things seem to be in tension. They're in conflict with each other. The only way you can possibly get both are through lower mortgage rates. But is he going to see later today you as a GRE follower, you don't have to wait for lower rates income, property still feels less affordable than it did five years ago, because it is that's real but here's the key distinction in what makes real estate investors different from owner occupied homeowners. Affordability isn't about the price of the property, it's about whether the property pays for itself and grows your net worth while inflation does the heavy lifting. Higher prices don't kill investors. Inaction during inflation does you're not buying a say, $350,000 property. You're controlling it with $70,000 while your tenant and inflation do the rest. We do not rely on hope or appreciation. We start with income tax benefits and debt pay down and then leverage appreciation typically happens as well. GRE only succeeds when investors close on properties that perform long term. One bad referral costs us years of trust, so we don't do that. The best question for you really isn't whether property is affordable. The question is whether owning an investment property is better than inflation compounding against you. That's the investor lens today.    Keith Weinhold  19:24   coming up next week on the show here, we're going to discuss apartments. It's been a truly be leaguered sector, where their prices have fallen 2030, and 40% in many markets. We've discussed apartments here on the show a lot before, like with Grant Cardone on episode 264, with Ken McElroy, countless times with me monologuing about apartments. And next week, we're going to talk to a multifamily educator who is known as the apartment King. Later on, a future show, we've got the return of the financial. Firebrand, and lately, the financial comedian Garrett Gunderson, a powerful speaker. That's definitely going to be interesting. As for today, you'll hear a first person account from a Florida resident about why he's moved to Florida and why he invests there. You've heard of this guy before. That's next. I'm Keith Weinhold. You're listening to Episode 593, of get rich education.    Keith Weinhold  20:26   Flock homes helps you retire from real estate and landlording, whether it's one problem property or your whole portfolio, through a 721, exchange, deferring your capital gains tax and depreciation recapture, it's a strategy long used by the ultra wealthy. Now Mom and Pop landlords can 721, the residential real estate request your initial valuation, see if your properties qualify@flockhomes.com slash GRE. That's f, l, O, C, K, homes.com/G. R, E,    Keith Weinhold  21:02   you know, most people think they're playing it safe with their liquid money, but they're actually losing savings accounts and bonds don't keep up when true inflation eats six or 7% of your wealth. Every single year, I invest my liquidity with FFI freedom family investments in their flagship program. Why fixed 10 to 12% returns have been predictable and paid quarterly. There's real world security backed by needs based real estate like affordable housing, Senior Living and health care. Ask about the freedom flagship program. When you speak to a freedom coach there, and that's just one part of their family of products. They've got workshops, webinars and seminars designed to educate you before you invest. Start with as little as 25k and finally, get your money working as hard as you do. Get started at Freedom family investments.com/gre, or send a text. Now it's 1-937-795-8989, yep, text their freedom coach directly again. 1-937-795-8989,   Keith Weinhold  22:13   the same place where I get my own mortgage loans is where you can get yours. Ridge lending group and MLS, 42056, they provided our listeners with more loans than anyone because they specialize in income properties. They help you build a long term plan for growing your real estate empire with leverage. Start your prequel and even chat with President chailey Ridge personally. While it's on your mind, start at Ridge lending group.com that's Ridge lending group.com   Zack Lemaster  22:47   this is rental retirement Zach Lee Masters. Listen to get rich education with Keith bleinhold, and don't quit your Daydream.   Keith Weinhold  23:02   I'd like to welcome in our own in house. GRE investment coach, we haven't had you on the show since November. Welcome in Naresh.   Naresh Vissa  23:11   Kwith, It's a pleasure to be back on the show. Thanks for having me on.   Keith Weinhold  23:16   We're just playing it all casual and comfortable here in house. You were just finishing up, what ice cream or a container of something right before we got started   Naresh Vissa  23:25   here, all done with the ice cream and ready to record the podcast.   Keith Weinhold  23:29   Yeah, all right, keeping cool for our chat. Well, you know you do live in Florida, so you must have your own perspective on the Florida market. You live in the Tampa area, and the reason that that's a germane topic is that's something we've been talking about here lately as really an opportunity, and that is because most of Florida has seen some temporary property price attrition, but yet more population growth is projected. So that's why we feel like that's temporary. But why don't you tell us about what you see on the ground there?   Naresh Vissa  24:07   Keith, I've lived in Florida for 11 and a half years now. That's Tampa, Florida. I like Florida a lot. I moved here December 2014 for similar reasons that many people are moving here today. So I moved to Florida in December 2014 because of no state income tax, because of, at the time, lower cost of living. Florida was one of the states I got hit the hardest during the 2008 financial crisis, or nothing called in a real estate crisis, Florida, Arizona, those few others got hit really, really hard. So Florida at that time was still rebounding from 2008 so I moved for the affordability, the no income tax, of course, the weather better. Weather. And then most places in the Northeast I've lived so weather is a big deal when it comes to real estate and geography as well. These are all different reasons to move to Florida, and these are the reasons why I moved to Florida. I was also single in my 20s, so I was much younger at the time. I was single in my mid 20s, and Florida is very good for that too. For 20 something Gen Z folks today, Florida is definitely a place that they should consider. I moved down here and I fell in love with it. From day one. I got a place living right on the water, a beach. Got beaches everywhere. Florida's tour. And I say all this because these are all enticing features of Florida, for renters, for tenants, for snowbirds. I had never even heard of what a snowbird was until I moved down to Florida, where you have people who literally live here for seven months of the year, and then they live in their home state for five months of the year. So that's generally what it is, seven months in Florida, five months in their home state, which can be the people I know personally are from New York, Connecticut, Illinois, Ohio. The list goes on and on. Basically anywhere that's north of Florida could be considered a snowbird area. So that's another reason why Florida is a very hot market. Now, obviously, during the pandemic, in end of 2020, people started moving to Florida in droves. Part of it was politically, because you didn't have the restrictions that other states had during that crazy time that we lived through. And another part of it was work from home. So similar to me, in 2014 when I became full time work from home, I wanted to move somewhere for all those different reasons that I gave you the total package, and Florida fit that there was maybe one other state that fit the bill, based on everything that I told you, probably one other state. That's it. So Florida fit the bill, and that's why I think Florida is always going to be despite the hurricane prep, Florida is always going to be a destination that people will seriously look at whether you're older, retirement age or younger. Like I said in my mid 20s, single guy Florida is always going to be that destination for all the reasons that I laid out. So with that being said, what does that mean for real estate? What that means for real estate is that there's going to be a constant supply of people coming into Florida, and when there's a constant supply of people coming into Florida, then you can expect real estate prices to at least not decline. We passed, you know, all sorts of bills, including Dodd Frank post 2008 to prevent people from taking out mortgages that they couldn't afford. So now that that's out of the way, when you have a constant supply of people who are able to afford homes, who are able to afford rents, well, that's going to be a constant supply. So that's good for investors, that's good for appreciation. It's good for cash flow. And that's why I'm a huge fan, not just of the state of Florida, but also investing in Florida. And I own real estate in Florida, and you can say that I lucked out, but I bought a property in 2019 and it nearly doubled in value, yeah, when I say doubled in value in a matter of I want to say, like, two years, two and a half years, it nearly doubled in value. So with that being said, Florida, this was a rare cyclical trend when we just saw this huge upswing, rare cyclical trend. But I don't anticipate cycles like this, where you're going to have booms and busts. Moving forward, we haven't seen a bus since 2008 like I said, the the law has been taken care of in that sense, the regulation. I love the state. I've lived in six major cities, but maybe five different states, and Florida is hands down my favorite. That's why I've lived here for what did I say? 11 and a half or 12 and a half years? I don't even remember anymore. It's actually 11 and a half. My roots are here. I now consider myself a Florida person, even more so than the state of Texas, where, which is where I spent 18 years. I have no doubt that I'll surpass 18 or 19 years in Florida, and that this is it, right here. And a major reason is because this is just such a great state. It's free, it's real estate friendly. This is for people who are looking at buying primary residences, not for investment properties. But the governor has put on the ballot this coming election cycle to remove, to abolish the property tax in the state of Florida. So if you own, if you live full time, not a snowbird, not investors, but if you live in Florida permanently, then no more property tax if the vote passes. So that's another huge plus for owning property if you're a permanent resident in Florida,   Keith Weinhold  29:57   yeah, even if the property tax is abolished. Which seems unlikely, you could just tell what the tenor and the temperature of the tax climate and the investing climate is like in Florida, if they're even spearheading such a proposal, and they're a national leader in something like property tax abolition, like they are and Naresh about eight years after you moved there, which would be, what about 2020? 2022, somewhere in there, we had that strong pandemic migration push into Florida. What's happened is that that flow has slowed down. There's still positive net in migration in there in Florida. But the builders, they got ahead of this, and the pandemic migration wave waned, and they had a temporarily overbuilt condition, and they still do now, which is one reason why we've seen prices fall somewhat in most Florida zip codes, and this spells part of the opportunity. So you do have all these new build properties, some of which are vacant, but you have a good chance they're going to get absorbed pretty soon. And there are some obvious advantages to owning new build.   Naresh Vissa  31:11   Well, Keith, there is brand new construction in Florida, like you said. The work started in 2021 and there are homes that have not been sold. I don't want to say, since they were finished building in 2021 they recently finished building in 2025 and these homes could be a variety of reasons. It could be economic related. It could be hurricane related. In Tampa, the Central Florida, we had two horrible hurricanes back to back within a 15 day period, two really bad hurricanes towards the end of 2024 September and October 2024 and people lost their homes. Renters lost their homes. Other people just were freaked out and scared and said, You know what? I don't want to deal with. I've got PTSD from these hurricanes. I'm moving up to Alabama or Georgia or Orlando, you know, somewhere in Central Florida, that's a way. But even that area, you know, the hurricane still made it through to those areas too. People just picked up and said, You know what I'm done with Florida. It's a great state, but I don't want to deal with these hurricanes. And so regardless, whatever the reason, this is a pie, and these are all slices of the pie, I don't know what's been more of a contributing factor than which one has been more than the others. But with that being said, there are tons of properties in Florida, pretty much the entire state of Florida, where, especially new construction properties, are below at the time when they were being built, they're below what they anticipated being listed as. And So Keith, we're having a special webinar this Thursday, talking about these properties because they are discounted properties. They are properties that are selling at tremendous discounts, like I said to when Ground was broken years ago. So join that webinar. Gre, webinars.com gre webinars.com. Again, brand new construction. Many of these properties already have tenants in place. Not all of them, but many of them do already have tenants in place. There are all sorts of incentives that the builder is offering. And there are many builders in that, not just this one that's going to be on the webinar, but in Florida, there are many builders who are offering discounts, rate, buy downs, other incentives, because the home values have fallen somewhat a bit. Why have the home values falling? Because the demand has fallen as well. So again, the next question people might have is, well, if the demand is falling, if home home values are falling, why would I buy the trend is downward. And the answer is, whether it's a stock or any other security, you don't necessarily want to have the FOMO to buy at an all time high, just because everyone else is buying it. And I actually have family members who bought real estate at the peak of 2022 there was FOMO and there was, hey, you know, I need to get a flip, and they're down. They bought peak 2022, and they're down today. Because, look, you can pick any housing market in the country, especially a prime state like Florida. Look at any 30 year period, and you will see that home values are up double digits, even if you look at 2009 when the housing market crashed and we reached something like 10 year bottom in housing, if you look at the 30 year period, well, if someone who bought a house in Florida in, say, 1979 was still way up on their property in 2009 30 years later, we're not buying Bitcoin here where it can go up 30% in one day or go down 30% in one day. We're talking real estate, and real estate has been proven. It's been tested. It's been proven throughout time, not even a 30 year period. I think if you take any 20 year period, you're going to see the same trend of double digit gains, double digit growth. On real estate appreciation. So I'd say, if you're skeptical about Florida, you see these home values, all these discounts, that's the first thing I hear from followers. They say, why are they offering so many discounts? I'm a little concerned about all these discounts and incentives, and I don't know if that's a good thing. Well, I say, Well, I mean, you can buy full price in another state, if you'd like, you know, in California or so you could, you're more than free to buy full price. But we're talking Florida here. We're not talking about West Virginia or Rhode Island, or, you know, Nebraska. We're talking Florida. This is still the land of Mickey Mouse and Minnie Mouse, this is the land of the best beaches in the country. I mean, they there's just no arguing or debating these facts. Florida all the reasons that I stated earlier, is going to continue to be a hot, hot market. So I highly recommend people, if you want to get in on these discounted deals, G R E, webinars.com G R E, webinars.com register for our upcoming online and live special event this Thursday evening at 8pm Eastern Time, 8pm Eastern Time, gre webinars.com you won't want to miss this free, online and live special event.   Keith Weinhold  36:25   When a pound of oranges is on sale or a pound of zucchini is on sale, consumers are often attracted to that sale. Should probably be the same way with you considering adding to your real estate portfolio, and it's funny, when oranges of zucchinis are on sale, no one tries to find fault with it and think that they're rotten inside or something like that. But somehow with real estate or an investment that tends to get scrutiny from people, but these are real discounts that you're getting over buying, say, two years ago, and we're talking about a motivated seller here. And as you know, Naresh, we had the builder on the show last week, the one that's going to be co hosting the webinar with you on Thursday, and he talked to us about buying down mortgage rates to between 3.75% and 4.25% and we're here at a time where the owner occupied rate is six to six and a quarter the investor rate is seven, so you're getting about a three percentage point buy down. That's really the attraction. And Naresh, before I ask you, if you have any last thoughts, yes, again, it is our live event that you can attend from the comfort of your own home, Thursday the 19th, at 8pm eastern in just a few days, here with Naresh and the builder who you heard on last week's show, co hosting a live webinar for Central Florida so inland new build income property. It's free. You're invited, and the benefit of you attending live is that you can have any of your questions answered in real time. You're going to learn more about the Central Florida market and more about the home building process, and you are going to be able to see available new bill property, real addresses, with some of these pretty grand incentives that we've talked about again. GRE webinars.com, any last thoughts? Naresh   Naresh Vissa  38:17   I get a lot of questions about is right now the time to buy? Should I buy later? What's going to happen with real estate? And I know the number one question, or the number one caution our followers are going to have, is, is right now the time is March or April, the time. And I say, look, with real estate, I already gave you the figure that you take any 20 year time period, any 30 year time period, and that's our time horizon here at GRE again, we're not trying to buy bitcoin here and flip it, you know, two days later, we're looking to buy and hold for, I don't want to say forever, but I know my time horizon in general is the full 30 year term, at least for my properties, and some people you know, want 10 or 15 years. That's fine too, but that's the time horizon. It is not one year, two years. We're not flipping new construction properties here in Central Florida. We are looking to buy and hold over the long haul, get some very good, high quality tenants in there, in these new construction properties, so that you, the GRE follower and the investor, can collect your monthly cash flow as well as over that 20 year period, or that 30 year period take part in appreciation as well. We've also talked extensively, Keith in previous episodes about interest rate cuts that the Federal Reserve is going to be doing, and just know this, there's a reason why the builder is offering these incentives where you can get the rates so low, your mortgage rate can be so low, and it's going to take at least a year, even if the Fed goes to zero. I mean, it's going to take mortgage rates a very long time. And to reach that point of getting such low interest rates that you just laid out, so that even makes it more enticing, like, Hey, I basically have a head start on the Federal Reserve because I follow the Fed pretty closely. We don't need to get into those details, but it's looking heavily like they are going to be start cutting again later this year, this summer. So it's looking like they're going to do that, but again, now you can have a head start, because when the Fed starts doing that, and when the mortgage rates fall, then everybody's going to jump in. And what's going to happen to the home values once everybody jumps in, well, they're going to go up. You want to jump in when everybody is not jumping in, and when you can get an amazing deal on these interest rates thanks to the builder buying down your interest rate. So this is a GRE special you can't get these deals. I challenge our followers to go on the internet and try to find better incentives or deals. And what you're going to see on this webinar, on this online, live special event. So gre webinars.com you can join me as well as our special guest. He heads up the builder. His name is Jim. He's going to be on with me. And please join us at grewebinars.com sign up for this free and live online special event.   Keith Weinhold  41:20   These are some great points. There's a lot of anticipation for Thursday, Naresh. We'll see you then.   Naresh Vissa  41:25   Thanks, Keith.   Keith Weinhold  41:32   Oh yeah, a first person account on Florida life and opportunity from our own Naresh nationally, the build to rent model that has been a real success, building single family rentals with the intent that they are rentals. From day one, over 321,000 homes have been built specifically as rentals this way since 2012, and more than three quarters of those in just the last five years. So the build to rent trend is picking up steam. About 1/3 of Americans rent their home, and although the word rental for some people that still conjures up visions of high rises packed with apartments, but a growing number of today's rentals are these freestanding, single family homes and duplexes like we're talking about today, nestled in suburban communities with top notch schools, and that's why a growing number of mom and pop investors have hopped on the build to rent bandwagon. They take less maintenance. It attracts quality tenants who stay longer, and the rentals have changed, but so had the renters. 20 years ago, it felt like tenants had to rent, like they had no choice. Today, you've got more and more tenants that choose to rent. Many of them make 100k to 125k or more. Today, rentals are cheaper than owning for those people, and they're less of a headache. A lot of them don't want to fix things, and you as the owner, don't want to either. That's why new build is attractive. Then, you know, I just sent that great map to our newsletter subscribers about which states saw the most population gain from 2020 to today, the South had more population growth than every other US region combined, which is jaw dropping and within the South, the state with the most population growth since 2020 is Florida, with An 8.9% population gain in that span, narrowly beating out Texas and South Carolina. By the way, even if it weren't for the attractive builder interest rate near 4% these Sunshine State deals could still make sense. New build single family rentals from the 270s new build duplexes, 395 to 420k low insurance rates, positive cash flow, a builder warranty. And it's really even better than that. These properties are centered on Ocala, Florida, which received national recognition as the fastest growing city for this second year in a row. That's according to a U haul report, and Florida is the epitome of investor friendly. Florida is the first state to enact a law allowing law enforcement to immediately remove squatters. It distinguishes them from legal tenants. You might come to the webinar event, perhaps thinking about 80k or 500k that you want to allocate toward property or maybe nothing and you just want to learn at the event you will evaluate realistic opportunities learn how property management is handled, and understand how today's inventory fits into your disciplined, long term strategy that all takes place on. On Thursday the 19th at 8pm Eastern. It's our biggest event of the year, and it is called Why Central Florida is the year's most compelling housing market. One last time for Thursday, it is gre webinars.com, until then, I'm your host. Keith Weinhold, don't quit your Daydream.   Unknown Speaker  45:20   You nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of get rich Education LLC, exclusively.   Keith Weinhold  45:52   The preceding program was brought to you by your home for wealth building get richeducation.com  

The Extremely Talented, Livi DarConte, chats with Uncle Vinny about her upbringing in film, directing, writing, acting, scoring, and life in general. Go follow https://.instagram.com/lividarconte/ to keep up with her new work. 0:00 - welcome @Livi-DarConte 0:40 - getting into film industry at a young age 2:40 - Daydream coming to life 3:55 "Mourning Glory" short film 5:50 - When people understand your art 7:00 - Film dedicated to Livi's grandmother;bts 9:00 - Risk taking in film 10:00 - turning dreams into reality through film 12:00 - Working in many different roles 13:00 - writing 14:40 - producing 15:30 - importance of versatility 17:00 - Arizona creative scene 18:45 - Livi's personal style 21:00 - Who cares what someone else thinks 23:30 - Modeling for suicideboy$ 25:25 - Directing music videos 26:45 - music in film 27:45 - working well with people 31:45 - Livi's vision 32:30 - gaining experience in life to help with creativity 35:30 - only 22 years old 37:45 - confidence is everything 40:00 - upcoming plans 41:00 - follow @lividarconte Click the Below Links to Keep Up With New Versatile Vigilante content: Instagram: https://instagram.com/VersatileVigilante/ Soundcloud: https://soundcloud.com/versatilevigilante Spotify: https://podcasters.spotify.com/podcast/6rbWSYZP9asHUv431qHZfK/overview Apple Podcasts: https://podcasts.apple.com/ca/podcast/versatile-vigilante/id1384221180?mt=2 Linktree: https://linktr.ee/VersatileVigilante

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Register here to attend the live virtual event "Why Central Florida is the Year's Most Compelling Housing Market" on Thursday, February 19th at 8pm Eastern. Keith looks at how a changing Federal Reserve leadership might shape the interest rate environment, then zooms in on what's really happening with homebuilders versus remodelers across the country.  You'll hear about a lesser-known strategy some investors are using to step back from day-to-day landlording while keeping their income, and then we head to Central Florida to explore why one fast-growing market is quietly becoming a hotspot for new-build rental properties.  Along the way, a longtime Florida builder joins the show to explain how they're creating affordable, investment-friendly homes and what kinds of rents and tenant demand they're seeing on the ground—plus a way you can learn more live if this opportunity fits your own portfolio plans. Resources: Register for the event at GREwebinars.com Episode Page: GetRichEducation.com/592 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com GRE Free Investment Coaching: GREinvestmentcoach.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  For predictable 10-12% quarterly returns, visit FreedomFamilyInvestments.com/GRE or text  1-937-795-8989 to speak with a freedom coach 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— GREletter.com  Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript:   Keith Weinhold  0:01   welcome to GRE. I'm your host. Keith Weinhold, the naming of a new Federal Reserve Chair. Then are homebuilders in trouble today? There are a dwindling number of them, and their profits are down. I'll talk to a homebuilder. Listen to what amenities tenants want today, and it's interesting. We'll learn how low of a mortgage rate builders will give you. Now there's an opportunity here today on get rich education.   Corey Coates  0:30   Since 2014 the powerful get rich education podcast has created more passive income for people than nearly any other show in the world. This show teaches you how to earn strong returns from passive real estate investing in the best markets without losing your time being a flipper or landlord. Show Host Keith Weinhold writes for both Forbes and Rich Dad advisors, and delivers a new show every week since 2014 there's been millions of listener downloads of 188 world nations. He has a list show guests include top selling personal finance author Robert Kiyosaki. Get rich education can be heard on every podcast platform, plus it has its own dedicated Apple and Android listener phone apps build wealth on the go with the get rich education podcast. Sign up now for the get rich education podcast or visit get rich education.com   Keith Weinhold  1:14   mid south home buyers with over two decades as the nation's highest rated turnkey provider, their empathetic property managers use your return on investment as their North Star. It's no wonder smart investors line up to get their completely renovated income properties like it's the newest iPhone headquartered in Memphis, with their globally attractive cash flows, mid south has an A plus rating with the Better Business Bureau and 4000 houses renovated, there is zero markup on maintenance. Let that sink in, and they average a 98.9% occupancy rate with an industry leading three and a half year average renter term. Every home they offer you will have brand new components, a bumper to bumper, one year warranty, new 30 year roofs. And wait for it, a high quality renter in an astounding price range, 100 to 150k GET TO KNOW mid south enjoy cash flow from day one at mid southhomebuyers.com that's mid southhomebuyers.com   Speaker 1  2:17   You're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education.   Keith Weinhold  2:33   Welcome to GRE from countersport Pennsylvania to Davenport Iowa and across 488 nations worldwide. I'm Keith Weinhold, and you're listening to get rich education now more than ever, where you learn about personal finance and real estate investing matters. There's more AI generated content out there. This show is all flesh and blood me. There's also more clickbait content out there that says something like the housing market is about to have a price crash. No, it's not. They're just there to get short term attention. So your information source really matters today. New incoming Fed chair, Kevin Warsh, was recently named. He will replace the outgoing Jerome Powell on May 15. I want to tell you more about that in a moment. But first, just imagine if this scenario were to occur, say that we get a Fed chair that has to deal with really high inflation. And so what this Fed chair does is that he successfully brings inflation down, and he does that without triggering a recession that's called a soft landing. Well, you know what? That's exactly what Jerome Powell did the past three years. Yeah, that's what he's accomplished, and he doesn't get credit for it. He only gets a lot of criticism. Now this doesn't mean that I love Powell. I don't even know that the Fed should exist at all, but Powell got a lot of criticism for calling 2022, wave of inflation transitory, and being too late to respond to it. So he gets some credit here as his term of more than eight years winds down. Let's listen in to some of Jay Powell's recent comments about succession,    Speaker 2  4:23   you've obviously experienced a lot during your time as Fed chair, served under multiple presidents. I'm wondering what advice you have for whoever your successor might be.   Speaker 3  4:34   Honestly, I'd say a couple of things. One is, you know, stay out of elected politics. Don't get pulled into elected politics don't do it. And that's another thing. Another is that you know, our window into democratic accountability is Congress, and it's not a passive burden for us to go. To Congress and talk to people. It's an affirmative, regular obligation. If you want democratic legitimacy, you earn it by your interactions with the our elected overseers. And so it's something you need to work hard at, and I have worked hard at it so and the last thing is, you know, it's easy to it's easy to criticize government institutions so many ways. I will tell whoever it is you're about to meet the most qualified group of people you not only have ever worked with, you will ever work with and when you meet fed staff. And not everybody's perfect, but, but there isn't a better cadre of professionals more dedicated to the public well being than work at the Fed.    Keith Weinhold  5:43   Yeah. So to Powell's point, the next Fed chair, worsh, does champion fed independence, much like Powell has. That is a good thing that keeps America from turning into a banana republic that maintains a strong dollar. Warsh was actually a Fed Governor back during the 2008 global financial crisis, so he's got that experience when he comes in as Fed Chair in three months, he's widely expected to lower interest rates more than Powell did, much like the president wants. Kevin Warsh looks a lot like Michael Scott from the office. He has got to be less bumbling than him, though, overall, the effect on real estate and mortgage rates by shifting from PAL to worsh, I mean, that should be pretty mild. Maybe you'll see rates go a little lower than if pal had stayed and speaking of rates, wait till you see how low the mortgage rate is that our homebuilder guest is offering today. What's really happening with homebuilders now? How much trouble are they in? Homebuilders have largely been maligned. Overall. There are fewer homebuilders today in America than there were 20 years ago, and there are more remodelers than there were 20 years ago, fewer home builders, more remodelers, and that's for a few different reasons. Over the past couple decades, we just have substantially higher labor and material costs, stricter building and energy codes, higher interest rates, and that disproportionately hurts long duration construction projects. We've got zoning constraints and land constraints that make ground up development slow and uncertain and risky. So while the number of Home Builders in America is down, the number of remodelers are up, because America's housing stock is getting older. Its median age is over 40 years, and that creates constant demand for upgrades. Capital prefers faster, lower risk cycles. That's what remodels offer, and homeowners with locked in low mortgage rates choose to stay in place. And what does that make them do? That makes them renovate and remodel, not move. So this is why, compared to 20 years ago, you have fewer home builders and more remodelers. Today, that's per the NAHB and the Census Bureau and all these forces, they've resulted in a lower profit margin for homebuilders. Yes, homebuilder margin compression for a lot of the bigger builders, including DR Horton, just as you might guess in this cycle, their profits were greatest in 2022 and they have fallen since then. Higher mortgage rates came in, and builders had to lose profits by offering more incentives to entice buyers. You're going to learn more about that today and how it really spells quite an opportunity for you and I. When the final change in national home prices was tallied for the end of last year, they had risen in 16,500 zip codes. All right, that's 63% of America's zip codes, and prices were lower from a year earlier in the other 37% home price gains were concentrated in the Northeast and Midwest, and the story there continues to be too many buyers and not enough homes. In fact, over 85% of zip codes saw price growth in Illinois, Connecticut, Wisconsin and Indiana, slow, steady, stubborn, kind of like winter refusing to leave. Losses were predominant in the Sun Belt. Prices caught their breath there. There was price attrition in Florida, with 96% of zip codes, so nearly all of Florida, then California, 78% of zip codes had a price loss. Texas, 75% of them and Arizona, 73% the biggest pocket of opportunity appears to be in Florida. Florida property is on sale. And because real estate is local. A lot of times we talk here nationally, but to get to that local level, sometimes you have to dig in to a local market to really find out what's going on. We're going to do that today. Now, central Miami, Orlando and Tampa, they're not generally the spot for obtaining cash flow from long term rentals. I've identified an opportunity. We'll get into that with this Florida homebuilder shortly. It's kind of funny. You'll run into people that say they want opportunity, but what they really want is certainty. How it plays out, though, is that once the certainty arrives, the opportunity is gone, and that's how to think about Florida and maybe Texas and some of these other markets today that have had price attrition.    Keith Weinhold  10:48   Now, three weeks ago, here on the show, I discussed the 721 exchange for the first time. So I won't get into all those details again when it comes time for you to sell your investment property, the 721 can be the best way for you to cash out. Perhaps you've been investing in real estate for a while and you have turned get rich education into got rich education. How the 721 exchange works is they basically say you have a case where you're a rental property owner and you realize that you don't want the hassles of landlording anymore. Oftentimes, this can mean you're older and real estate investing already took you where you wanted it to take you in life's journey, but you still like the financial benefit that ownership gives you. What you can do is exchange your properties into a partnership and receive shares in that partnership. Now that's different than a 1031, exchange. That's where you trade up some of your property that you directly own for what's usually more and larger property that you directly own. Well, instead, here's the big deal with exchanging your properties into a 721, partnership. The rules stipulate that this is not a taxable event, and therefore you don't have to pay any capital gains tax or depreciation recapture. Now that you're an owner in the partnership, you still get some of the benefits of owning the property, like appreciation and cash flow and such, yet no management or landlording at all like you would have with a 1031 and with a 721 you get all these benefits across a greater number of properties and markets diversification because you're a fractional owner in the other properties that are in the partnership, not only your own, and when you eventually pass away, your shares are stepped up in basis and can be distributed equally to heirs and C It's surely easier for you to divide shares among, say, your three children, than it is to divide your 18 rental houses among three children Who are going to have different goals and varying degrees of financial savvy. So the 721, exchange is a great estate planning tool too. You will have this partnership that makes an offer to buy your property. You're exchanging them for partnership shares. There's a firm that does this called flock homes, and they have a certain Buy Box to be clear with the 721, exchange, you can basically trade your rentals for shares in a diversified, professionally managed Real Estate Fund. This means that you keep your hard earned equity defer capital gains and other taxes, and you still get access to steady income and long term appreciation without the hassle of landlord duties, and you can visit flockhomes.com/gre, and get a free valuation. Get an offer for your property, see if it fits their buy box and see how much they'll pay you. There's often no need to pay to fix up or stage the property for sale or pay agent commissions for a certain investor type. This really can be a rather life changing experience for you to liquidate some or all of your property have zero tax obligation and still enjoy income and appreciation. So again, what you can do is stop by flock homes.com/gre, that's F, l, O, C, K, homes.com/g, R, E, let's discuss the home building climate today.   Keith Weinhold  14:38   I'd like to bring in a premium Florida homebuilder guest to the show, Jim, because there has been more homebuilding in Florida such that some areas of the state have excess supply. And when you add that onto the fact that the hot pandemic migration to Florida has slowed such that home prices have made a rare dip in the state, that is why it. A timely topic. Jim, you're on GRE Welcome to the show. Keith, great to be here. Thanks for having me. Yeah, and we did the IRL thing in Colorado there a few weeks ago. That was great hanging out in person. You provide entry level new build homes, mostly in Central Florida. And these are properties that are conducive to real estate pays five ways. These are properties that investors chiefly buy as rentals. So just bigger picture, tell us about that overall experience over, say, the last five years, as the pandemic wound down,    Jim Sheils  15:35   yeah, as the pandemic wound down, obviously Florida had a lot of attention. Some of it, rightly so, some of it, I think a little more inflated and commercial attention getting thrown at it. And you know, the type of deals that you and I have always stayed away from were very popular in Florida. You know, we're talking really nice houses. Keith, beautiful, nice HOAs people got in in 2021 let's say, with those very low interest rates on a six or $700,000 home, but now they're realizing that it's not going up $100,000 a year as they thought. And when they try to sell it, well, people trying to buy in $700,000 home, they're not getting that low interest rate. And if these people try to hold it and rent it, well, it doesn't cash flow, so it breaks one of those rules. It's not putting money in people's pockets, taking it out. And so we're seeing there was a large distribution of those types of houses around Florida. And then there were some builders like us that really focused on what was the most needed, and that was workforce housing. Now workforce housing, though, Keith, as you know, a lot of the builders don't want to build it. Why? Let's be straight. It's because the margins are lower right. But as you know, with me and my partner Chris, it was always let's make less margin and do more volume. That was always our model, and that was the area of the market where we felt we could build it right, we could get it financed right, and we could manage it right to hit the five things. And so we're seeing today, post pandemic, there are still key markets where the population growth is still the highest, coming into Florida, the prices are still the lowest, and there is a shortage of this type of workforce housing.   Keith Weinhold  17:11   Yes, you've identified a geography within Florida that have some of these characteristics like you're talking about. Tell us more about that region.   Jim Sheils  17:20   Yeah, we call it the Ocala region, so Central Florida, just west of Orlando. Right now, for example, u haul does their U haul top markets rankings every year? So where are the most U haul trucks going to now, you don't want to be on their side where they're coming from, Keith, because that's obviously the opposite. But for the second year in a row, the greater Ocala area has been the number 1u haul destination place in the country. So there's still a ton of population growth going there. Central Florida, I'm not going to say it sat out the growth during the pandemic that a lot of areas of Florida did, but it was starting at such a low basis with such a small amount of attention that today, even when people say, oh gosh, like I just said, house is 600 700 800,000 we're building new construction single family homes for under 300,000 the 270s a lot of the time. And we're building duplexes sometimes for under 400,000 and a lot of our you know, investors coming from the west coast. Say, are these fully built? Are they? But again, Central Florida has had a great affordability. Remain intact. It has a large population going in. There is a ton of job resource just blowing up in the area. And as you know, these are the things we look for. So we bought a lot of lots there. I'm gonna give credit to my partner, Chris. He saw calla more than I did, and we bought a lot of lots there in 2020 so before all the rises. So we got into the land basis, right? So that means we can build them at a great price. Our land basis is low, and that obviously passes along to our clients. And again, Central Florida is a perfect match for our goal. Because, you know, our goal is workforce housing, that cash flows on day one. But also nothing wrong with fixer uppers. I own a lot. I used to do a lot, but the new construction seems to have a little bit more of a less involvement, which it seems like a lot of our clients want.   Keith Weinhold  19:15   That was really prescient, as it turned out, for your business partner, Chris there to gobble up a lot of that land in 2020 before prices went soaring. And this is one reason why you can do things like offer a duplex for less than 400k That's a new build, which has some people saying like, does that thing include a roof even? But it surely does. These are very good quality livable properties. And the reason I have you here, Jim is because you are rare. There are fewer builders today than there were in decades past, and also those that build to your point earlier. They only want to build higher end properties, not the more affordable ones that you offer. We'll get more details on your price points and what properties. Products you offer later. But yeah, we have more remodelers today and fewer builders. And though it's a few years old, I found it interesting that census statistics show us that between 2007 and 2022 there are 73% more remodelers and 21% fewer builders today.    Jim Sheils  20:22   Interesting. You know, Keith, I didn't know that, and that makes me scratch my head on like when you and I were in Colorado, we were talking about future needs, even with growth that occurred during the pandemic going all the way back to oh eight when a real shortage started to start, we are still at an estimated three to 5 million homes short in the US. It really perplexes me that the amount of builders like us will be going down and not actually entering the market.   Keith Weinhold  20:47   Now, among those that are building, though, much of that is concentrated in the South, as I think we know, there's a recent resi club compilation show that 59% of current single family home building is in the south, and 41% is everywhere else. And how do you define the South? That's basically Maryland down to Florida, all the way out to Texas and Oklahoma. So you are pretty rare in some ways. However, where you're building regionally, that's not a rarity there, but yeah, having more remodelers today and fewer home builders, that's probably the result of a lot of things. You know, for one thing, just land and construction costs becoming that much more expensive over the past five years.   Jim Sheils  21:05    Yeah, we've been lucky, too, as you know, Keith, you've been with us for a decade now. But yeah, and we transitioned a piece of our company where Sumitomo forestry, large Japanese group stepped in and acquired a piece of our property. That was a very exciting thing for all of us together, because we had done well, and, you know, started small and built up to a decent sized builder for Northeast Florida and then the rest of Florida. But now, with Sumitomo coming in again, they build 17,000 homes worldwide every year, between all of their builders. Now being a part of them, we get to use their national material accounts, so they get pricing just as good, if not better, than national home builders, and they let us do our thing, stick to our build to rent, working with investor clients. We're not retail buyer guys, really. We like working with our investors, but just getting those great discounts on materials, again, we're always looking to pass on savings to our clients. Of course, we got to make margins as well, but if we're getting in with deals like that, getting into the land right, and knowing the pinpointed areas to get into, we can get the best deal for everyone. And that's been a major part having such a big, successful partner like Sumitomo keep us healthy, viable and able to do things we could have not even dreamed of five years ago.   Keith Weinhold  22:47   Yes, that gives you more capital and more options. Another unusual aberration in the market that really centers on a lot of what you do is that this fact that and this was mentioned on the show last year for the first time in my life, existing homes cost more than new build homes. Existing homes at about 420k nationally, and new build homes about 392k part of the divergence there is probably builder price cuts. So tell us more about that.    Jim Sheils  23:14   I think the issue Heath is builders built for largest spreads, and people bought very emotionally. I think you're to give you a compliment a very unemotional real estate buyer. You're not looking at, oh, this is a very nice, you know, extra his and hers porcelain sink. And we're looking at fundamental numbers a good, solid property. And I think what's caused a lot of that is people did the opposite. Builders were looking for the largest margin they could get, which was on those types of properties. And then buyers were looking very emotionally, and they were told, Hey, this is going to go up 50 to $100,000 a year. So just sit there and hold on, sure you'll lose $1,500 a month, but don't worry about it. You'll make up for that every year. And obviously we're not seeing that's true. They could have really used your class about the five ways to get paid in real estate. And I think that that's what's doing it. And this is what builders do. I mean, everyone's in a business, and a lot of builders just focus on the largest margin. Now that's eating them up now, because those types of properties are not in demand. To build them on spec would be very dangerous, but you can see that that worked for a short term. We're very glad we went to the low margin workforce housing model, because I see that falling out of favor almost never even in Oh 809, Keith, when I was in the remodel game, a lot of the properties that were new construction coming out that time they were affordable, still did very well.   Keith Weinhold  24:42   We're talking with a premium Florida homebuilder today, because they offer affordable properties that make sense for investors. But what about the demand? Where is that going to come from? Where is that going to be? And that's what's happening with the renter segment. We'll talk more about that when we. Come back. You're listening to get rich Education. I'm your host. Keith Weinhold,   Keith Weinhold  25:03   flock homes helps you retire from real estate and landlording, whether it's one problem, property or your whole portfolio through a 721, exchange, deferring your capital gains tax and depreciation recapture, it's a strategy long used by the ultra wealthy. Now Mom and Pop landlords can 721, the residential real estate request your initial valuation, see if your properties qualify@flockhomes.com slash GRE, that's F, l, O, C, K, homes.com/gre.    Keith Weinhold  25:39   You know, most people think they're playing it safe with their liquid money, but they're actually losing savings accounts and bonds don't keep up when true inflation eats six or 7% of your wealth. Every single year, I invest my liquidity with FFI freedom family investments in their flagship program. Why fixed 10 to 12% returns have been predictable and paid quarterly. There's real world security backed by needs based real estate like affordable housing, Senior Living and health care. Ask about the freedom flagship program when you speak to a freedom coach there, and that's just one part of their family of products, they've got workshops, webinars and seminars designed to educate you before you invest. Start with as little as 25k and finally, get your money working as hard as you do. Get started at Freedom, family investments.com/gre, or send a text now it's 1-937-795-8989, yep, text their freedom coach directly. Again, 1-937-795-8989,   Keith Weinhold  26:51   the same place where I get my own mortgage loans is where you can get yours. Ridge lending group and MLS, 42056, they provided our listeners with more loans than anyone because they specialize in income properties. They help you build a long term plan for growing your real estate empire with leverage. Start your prequel and even chat with President chailey Ridge personally, while it's on your mind, start at Ridge lending group.com that's Ridge lending group.com   Ken McElroy  27:26   this is Rich Dad advisor, Ken McElroy. Listen to get rich education with Keith whitehold, and don't twitch your Daydream.   Keith Weinhold  27:40   Welcome back to get rich Education. I'm your host. Keith Weinhold, we're talking with Jim a premium Florida homebuilder here at such an interesting time in the cycle, since supply is up in some parts of Florida, Jim and his team has strategically chosen a place that is still fueling a lot of net in migration in Central Florida, and that's where the rental demand needs to come from as well. Now nationally, we've seen the homeownership rate fall over about the past year, from near 66% to near 65% that does not sound like much, but a 1% shift means there are 1.3 million new renters in just the past year. So with that in mind, and the fact that this low affordability for home buying means that people need to rent or stay renters longer, provides some of the Sustainable demand. So tell us more about the rental demand in Central Florida.   Jim Sheils  28:39   Yeah, you know, when we first went out there about a decade ago, Keith, I think it was 82 or 83% of all properties out there were owner occupied, which means it was a very lopsided amount of existing rental property available. And this is before the curve of population growth really took off. But when Chris and I went out there and we were assessing that small percentage of rental property that was out there. Gosh, it was old and kind of beat up. There was not a lot like the new construction that was available. So when we brought in new construction, we saw just the competition. Was hard to compete with us. You know, when it was an older, not so nice taking care of we came in and we saw a jump from, you know, doing older houses ourselves, you know, a person would stay about 13 months. But for the new construction in Central Florida, we've seen a jump to about three years. So that's really positive. People get into a new construction property they don't want to leave, whether that's half of a duplex or a single family. The duplexes are interesting because we're able to build those on infill lots and existing single family home neighborhoods, so a person who doesn't want to live in an apartment can live there, have their own yard, and they couldn't afford the whole single family, but to have half of a single family basically what a duplex is. It makes a big difference, and the people are in great demand of rental in Central Florida there because of exactly why. I said, Keith, the job. Course, continues to grow in Central Florida, extremely strong. The business incentives to come into the area by the local municipality is very, very good. So here's something interesting, Keith, the average salary in Ocala is about 72,000 and the average home price is about 298,000 that is a very healthy affordability one. Yeah, very, very good. And so that job source continues to pay very well. And we've talked about just the logistics centers and the Equestrian Center. That's the largest in the world. Now the villages are just 25 miles south. So Ocala becomes a bedroom community, and that is the second largest retirement community and growing in the US. So there's a lot of job source that allows people to live there at a good affordability. And so that combination of affordability with this extending job source has been really, really good for the Ocala region.   Keith Weinhold  30:59   It's been said that the only place you get money is from other people, and we're talking about your renters in this case. So oftentimes these renters, they had their sense of privacy there, like, for example, do the duplexes even have fenced backyards for each individual side,   Jim Sheils  31:17   depending on where they are? We will. Other times it hasn't been a requirement. We've done lots of surveys to see is it worth the price point to put in full fencing in certain areas. It can be in a lot of areas. Keith, they're just so excited with the price point not having to move into an apartment building that it hasn't even been warranted or necessary.   Keith Weinhold  31:38   Yeah. So we're talking about livability characteristics here, because oftentimes new build rental property results in a higher tenant stay that longer duration, because they're the first person that have ever lived there, and it's also difficult for them to go out and improve their living situation unless they become a home buyer, and that's difficult to do today. Tell us more about the incentives and the property types and so on, because there really are some pretty exciting ones.    Jim Sheils  32:09   One of the best things about Central Florida, Keith, combined with new construction, is insurance costs. Now you and I have laughed about the blanketed statement where you said, oh my goodness, you cannot get insurance in Florida. You can't get property insurance in Florida, or it's doubled, tripled, gone up 7x that is a true statement on certain properties. If you're buying older properties from the 1950s that are within a half mile of the beach on low lying ground, but new construction properties far away from the beach, that is a totally different things. So again, being in Central Florida, where we are, a lot of people think, oh, to insure a single family home there, that's going to be several $100 a month, when actually, you know, and you've seen a lot of our performer quotes, our insurance companies are getting a single family home done for about $65 a month on average, full coverage. And that's the advantage of new construction. Insurance companies are all about risk. They analyze risk. When you're on a new construction property built on higher ground away from the beach, they like that, and they do that a duplex. You're looking at about $100 a month. So incentive wise, we've really searched to team up with great insurance companies that get the best rates full coverage. And again, we surprise people when they say, Oh man, I thought there would be a whole nother zero at that monthly cost. And these are actual quotes, as you know, with working with a lot of GRE people. So that's one great thing, another great thing, Keith, that happened when we joined forces with Sumitomo. And again, Sumitomo 320, years old, one of the biggest powerhouses out of Asia, Warren Buffett, is very heavily invested in another one of the conglomerates, not the housing one we do, but he's very involved in one of their other companies. And when they came aboard, you know, we have no bank debt for a builder, which is rare. And since we have such a healthy balance sheet, we're actually able to work deals with mortgage companies where we'll do what's called builder forward commitments, Keith, and that means we will pre buy mortgages for our clients, for the homes we're building, and we will pass that savings along. So right now, you know, if an investment property in a duplex might be an average of 7% for anyone who walks in off the street to a bank. Right now, our most popular rate program for our investors, for single family or duplexes, is 3.75 Gosh. So as you know, for your five ways, if we want to get cash flow, there's a big difference. Yeah, we're getting affordable housing. But if the rate is over 7% compared to 375 that could eat up the cash flow with us being able to have this power to buy large tranches of money and pass it along and lock our people in again, an average right now at 3.75 is our most popular program, and that's long term money, then we're able to get that cash flow right off the bat. And you and I know how important that is   Keith Weinhold  34:50    for this super attractive 3.75% long term mortgage rate on single family homes and duplexes. How? Much does the buyer have to come out of pocket at the closing table to buy that down themselves? And how much do you the builder participate in that buy down?   Jim Sheils  35:07   You know, it depends Keith at different times, because there is a little bit of a fluctuation. Sometimes it can be as low as zero points or just one origination point to bring it in. It does vary. And also, if people say, hey, I really don't want to bring in any points. Well, that's fine. You know, if you don't want to walk in zero to 2% points for that, you can also just raise your rate up to four and a quarter and probably walk in nothing. So there's different things that we can do, but the goal of it is to have us have the brunt of it. And what I can tell you is, if the average person walked into a bank, and a bank wouldn't do this anyway. It's only for, again, builders with a certain size, but if you went into a bank right now and said, I'd like to buy my rate down to 3.75 the average Keith that this would cost a person off the street going into a bank would be 12 to 15% banks wouldn't even do it for an individual. But that's about the estimates when you look at it. So again, volume has privileged. The fact we're able to buy it down. It does cost us a good amount of money, but we're all able to save since we're kind of working together to buy these larger tranches. And again, the need of any investment for buying down the rate from the clients is very minimal.   Keith Weinhold  36:18   Tell us more about the property types, new build single family homes, new build duplexes.   Jim Sheils  36:23   You know, single family and duplexes are our main focus in 2026 for Central Florida, we've done the research. They're very high in demand. They rent quickly, and they rent long term to produce cash flow. Our average single family home under 300,000 we're aiming to after expense, make about $300 cash flow. Our duplexes should be about twice that amount, about just under $600 a month, or just over in cash flow. And then again, the prices are ranging from about 395, to 420, for a duplex. Again, these are in workforce areas where we're doing great, scattered lots. Scattered lot means there's already existing homes around. We like to go to an area where there's good a fundamental balance of homeowners and renters. So there's retail buyers that have bought their first home, and we will place our rentals in between them, whether it's a single family or a duplex.   Keith Weinhold  37:13   We sure don't need to do a complete audio pro forma here, but those cash flow amounts something near $300 for a single family home, and about double that for a duplex. Is that using, you know, a bought down rate to about 4% and some of these other inputs you're talking about, like low insurance costs and a certain property tax rate, can you tell us about that?    Jim Sheils  37:35   Yeah, property tax rate is property tax rate. We can get pretty dang close on property taxes, you know, based on millage and get that down. But when we do our performers, we absolutely go off of, you know, our average rate to be the 375, to four and a quarter. And then when GRE clients look at our performer, and they look at the insurance cost, that's an actual quote from one of our insurance companies that has insured hundreds and hundreds of these properties. Not a guess, yeah, so they know what they're doing. So yeah, those would be the assumptions made in there, and that's what we're basically getting on a week in, week out basis.    Keith Weinhold  38:09   That is really attractive as we're talking about new build. I imagine there is some sort of builder warranty as well.    Jim Sheils  38:16   There's a state mandated 210 warranty. 210 warranty is something we could talk probably a whole episode on Keith. But for what's good for people to know, basically what that means, you get two years coverage on the small stuff and 10 years coverage on the big structural stuff. And so that's why I like new construction. You know what? I used to personally just buy my own fixer up Return key properties from other people. I could get a one year warranty, and that's the best that really can be done. Now with new construction, we've gone from, you know, with our fixer upper homes, able to do a one year warranty, which is good at something. But now with new construction, we can do a 210 warranty, big difference, and also really helps the safety score of issues if they came up.    Keith Weinhold  38:59   We were talking about new build property, and we tend to project relatively low maintenance and repair costs for an obvious reason, maybe your long term vacancy rate could very well be lower as well, due to my earlier point about a tenant wanting to stay there for a long time, because it's hard for them to improve their living situation unless they went out and bought their own place. And you have the low insurance rates, and you have the low mortgage rates, all contributing to positive cash flow on a new build property. And we think about that tenant and what gets the tenant excited? We start to think about some of those amenities. So tell us about what amenities are offered, including inside, in the kitchen and so on.   Jim Sheils  39:38   Jim, yeah, great question, Keith. We've really gotten a great recipe for success for that. You know, we've been doing this a little over a decade now, and so you're always tweaking your build model. What do people like? What do they not like? What's good for durability? Let's look at maintenance and repairs. Let's look at turn costs. So our goal is always the dual focus. That's what looks good. And what lasts really well, yeah, because you want durability. When you have tenants, you want it to look good, so you sell it down the road, 510, years to a first time homebuyer, it looks great. You can sell it. But durability wise, you don't want a lot of extra expenses or maintenance and repairs. So we go durability. So what we found a couple of things. I always joke about this. I do not like the word carpet, Keith, that is a terrible swear word in real estate investing, I can tell you right now, if I could go back and this is not, you know, owning hundreds of rentals, if I could not have done carpet and just reversed it to like vinyl plank flooring, like we do now, or even tile, which was more, I probably would have been able to buy three or four of our duplexes cash with the amount of money, and that is not an exaggeration. So we do not do carpet. First of all, it seems like trends are changing. It's not in favor right now. So we do vinyl plank flooring, which looks really nice, almost like wood floors, super durable, though, for a young family that's going to be tenant occupied in your property and running around on it. That's great. Kitchen wise, again, we don't sell retail really. We like to work with investors, but down the road, our investor might want to sell to a retail buyer. So we know, you know, from our old fix and flip days of the FHA buyers, the kitchen's got a pop. So we always do, you know, we don't do the white appliances, which you know would save you quite a bit of money, and save us quite a bit of money. We do stainless steel appliances. We do all new cabinetry, you know, kind of the latest, nicer cabinetry, a little bit of an upgrade. And then, you know, butcher block countertops, those are going to wear in about a year or two. Keith, it feels really good to spend that smaller amount, you know. But we, we like to do the more durable, nice looking countertops, you know, that are, you know, just so much more esthetically pleasing and actually durable as well. Same thing in the bathrooms. A lot of new builders will do shower kit, which not a problem if you're saving money on a rehab, you know, but we would rather do tile, bring in the extra subcontractors to give tile, and then in the master we do the dual sinks, which this might sound like little stuff, Keith, but these are the micro movements that help get a tenant in quicker, stay longer and more rent. So we're always trying to do these extra things in the granite countertops, both in the kitchens and in the bathrooms. Those cost more upfront, but we see for long term of tenant we see, for the amount of rent we get, and for resale ability, because a lot of people don't think about that. You know what? In seven years you want to sell one of these properties? Well, it's a seven year old roof, it's seven year old plumbing, you're still in a great spot for an FHA buyer. And that esthetically pleasing flooring, bathrooms, kitchens. That allows an easier sale for them, because we want to look all the way around, not just a rental. I like to hold long term, but if you want to sell in five to 10 years, that's a very valid strategy.    Keith Weinhold  42:48   I like carpet in my own home, but not rentals. But what you're sharing with us, Jim, this is absolute gold that's been brought to you through experience. This over improvement versus under improvement line in rentals, and it really has a lot of balance between durability and price. These are the sort of things that really matter, but you are selling predominantly to individual investors, a lot of mom and pop investors. Why don't you make more sales to the retail, owner occupied market, or to institutional investors, even though that might be cracked down upon now. But why don't you sell to those parties?   Jim Sheils  43:26   Yeah, you know Keith, I did a lot of fix and flip to FHA buyers, and I'm an investor. I really like working with investors. So when this all really went back to is 2009 I had a lot of investors. I was in Northeast Florida. The deal flow was incredible. And I just had a lot of investors, you know, through my different networks and Masterminds, like, where you and I have met, and said, Hey, you're getting great deals in Northeast Florida. Could you help put some together for me? And so I had done quite a few fix and flips to retail buyers, and it just kind of hot on me, you know, way back then, like, Wow. I like working with investors. I like building portfolios. I also like the fact that when I'm normally building a portfolio for an investor, well, they hang out with other investors, and they're not looking to buy one property over the next five years. They're looking to buy five to eight properties over the next five years. great point. And so we just saw it as you gotta like who you work with, right? And nothing against first time homebuyers. But when I was rehabbing houses and selling them, golly, that was a lot of work. And then could be persnickety. Yeah, very persnickety. And so when Chris and I teamed up about 10 years ago, we had both gone through the same kind of aha, like going, Yeah, it seems great, but you could sell for more to a retail buyer. But again, like I go back to even the type of property we build, we'd rather do a volume with investors. Be a builder, buy investors for investors, and work that way. And I think it suits me. I think I would have probably hung up my shoes a long time ago if I was. Working with the amount of properties we've done with retail buyers compared to investors, honestly, and so I think it was just kind of, it was a preference, really, that made sense   Keith Weinhold  45:09   to your point. Investors buy multiple properties, and that way there are fewer parties to deal with. And investors tend to be less emotional than those more persnickety, owner occupied buyers. Well, Jim, you make it easy for investors. Besides all these incentives, you also offer an in house management solution for these investors, often that tend to be out of state. Well, Jim, before I ask you, if you have any closing thoughts, would you the listener like to ask Jim any question directly? Well, you can, because I have a great event to tell you about next Thursday, the 19th, at 8pm eastern Jim here and GRE investment coach, Naresh will co host a live webinar for Central Florida new build income property. In fact, Jim, I think you know Naresh longer than I have, as it turns out, but this event is free, and you the listener are invited. We've had between 250 and 550 registrants for our past webinars. Not all of them attend live. So the benefit of you attending live is that you can have any of your questions answered by either Naresh or Jim in real time, and besides learning about the Central Florida market and more about home building, you are going to see available new build income property, real addresses with some of these rather grand incentives that we've talked about here, you might end up with a long term rate of about 4% again, it is Thursday, the 19th at 8pm Eastern. Sign up is open now at grewebinars.com that's grewebinars.com Any final thoughts here, Jim, for this great event coming up next week?   Jim Sheils  46:52   I think we're going to dig a little deeper. Obviously, this is a conversation that was great, but moves pretty quickly when we talk next week, we're going to be able to dig into more of the fundamentals, some of the stats, and just get underneath the hood of why Central Florida is making so much sense, and just some of the rising stars that we're seeing there that we're very excited to be a part of.   Keith Weinhold  47:13   You've helped our listeners for close to 10 years now. It's been an informative chat as always. Thanks so much for coming back onto the show.    Jim Sheils  47:21   Thanks for having me, Keith.   Keith Weinhold  47:27   Yeah, like our guest touched on Ocala, Florida now has national recognition as the fastest growing city in America, and that's for the second year in a row. According to a new U haul report, Florida is, of course, a rather landlord friendly state. In fact, Florida is the first state to enact a law that allows law enforcement to immediately remove squatters, distinguishing them from legal tenants. Now here's what's interesting and why I've identified this opportunity if Florida prices dipped because people were leaving now, that could be a red flag, because population loss is like gravity. Once it starts falling, it is hard to escape. But that's not what's happening. Instead, what we're seeing is a temporary overbuild hangover. Builders got ambitious. We're in a brief period where supply outran demand and prices softened. That's not decay. That's a sale rack. Any vacant homes are not stranded. They're being absorbed by Florida's still growing population, which has now increased every single decade since its first census count, back in the year 1830 back in 1830 there were about 35,000 residents in the whole state. Isn't that amazing today? North of 24 million, that is 700x population growth in almost 200 years, and it's still growing. That kind of trend doesn't reverse because a few builders over ordered inventory here at GRE this made us target and find in opportunity. This isn't an accident. Central Florida is this year's most compelling. Housing market in that region, Central Florida, is growing faster than the rest of the state at large, and it really sits in the sweet spot of this temporary imbalance. One long established builder overbuilt and now they're motivated. They know what investors want. So, for example, they don't build swimming pools with their homes. They also offer property tours, and over 90% of their tour attendees buy property. They're willing to offer terrific incentives at our upcoming GRE live webinar, like we touched on new build single family rentals, 270k and up duplexes, three. 95 to 420, long term mortgage rates as low as 3.75% you get low insurance rates since they're inland and new build positive cash flow and a builder warranty at the event. You're going to learn all about the growth drivers in Central Florida, why so many renters are moving there and see available properties. This benefits anyone looking for a clear, practical view of current real estate conditions. Joining live does matter, since you can have those questions answered in real time, not after the opportunity has moved on, you are invited for next Thursday, the 19th, at 8p m Eastern. This one is worth circling, not because it's flashy, because it's timed right. Sign up is open now @grewebinars.com that's gre webinars.com. Until next week. I'm your host. Keith Weinhold, don't quit your Daydream.   Speaker 5  51:00   Nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of get rich Education LLC, exclusively.   Keith Weinhold  51:29   The preceding program was brought to you by your home for wealth, building, get richeducation.com  

Dreams have always felt like a locked door to me, a part of my inner world I couldn't quite access. My conversation with dream scientist Dr. Bonnie Buckner changed that. We explore how your sleeping brain is a creative powerhouse, how nightmares are actually trapped energy, and how she literally moved to France because of a dream. This is about listening to the most intimate conversation you have with yourself.00:00 Welcome: Creativity & The Power of Dreams01:43 Meet Dr. Bonnie Buckner: From Hollywood to Dream Science04:31 How Bonnie's Dream Journey Began07:21 The "Mystery" of Prophetic and Visitation Dreams09:17 The Modern Creativity Crisis12:15 Dreams, Imagination, and Manifesting Your Life16:06 How to Start Remembering Your Dreams19:26 How a Dream Sent Bonnie to France26:23 Daydreams vs. Sleep Dreams30:15 Every Aspect of the Dream is You33:45 The Seven Kinds of Dreams (Nightmares, Clear Dreams & More)38:18 A Practical Example: Interpreting a "Clear Dream"42:09 How Many Dreams Do We Have?44:22 Using Lucid Dreaming to Solve Problems48:04 Dreams as a Spiritual Pathway51:36 Amy Shares & Bonnie Interprets a Personal Dream55:38 How to Connect with Bonnie & Learn More Learn More About Bonnie: Book: The Secret Mind: Unlock the Power of Dreams to Transform Your Life Website: bonniebuckner.com Dream Institute: International Institute for Dreaming and Imagery (dreamwithiidi.com) Instagram: @bonniebuckner.com JOIN MY COMMUNITY In The Space Between membership, you'll get access to LIVE quarterly Ask Amy Anything meetings (not offered anywhere else!), discounts on courses, special giveaways, and a place to connect with Amy and other like-minded people. You'll also get exclusive access to other behind-the-scenes goodness when you join! Click here to find out more --> https://shorturl.at/vVrwR Stay Connected: - Instagram - https://tinyurl.com/ysvafdwc- Facebook - https://tinyurl.com/yc3z48v9- YouTube - https://tinyurl.com/ywdsc9vt- Website - https://tinyurl.com/ydj949kt Life, Death & the Space Between Dr. Amy RobbinsExploring life, death, consciousness and what it all means. Put your preconceived notions aside as we explore life, death, consciousness and what it all means on Life, Death & the Space Between.**Brought to you by:Dr. Amy Robbins | Host, Executive ProducerPodcastize.net | Audio & Video Production | Hosted on Acast. See acast.com/privacy for more information.

We discuss if Puppetmaster is the GOAT, Forever Girls, and recap the old FTSW podcasts on these episodes as the From the Spirit World crew rewatches Avatar: The Last Airbender 20 years later! Today we’re talking Chapters 47-49,“The Runaway”, “The Puppetmaster”, “Nightmares and Daydreams”. Hosts for this podcast: Dylan, Delaney, & April.

What if AI didn't replace creativity in fashion, but amplified it?In this episode of Women in Leadership Talk, Vicki Bradley sits down with Lisa Yamner, co-founder of Daydream, to explore how AI, fashion, and consumer behavior are reshaping the future of retail. From personalization to storytelling, Lisa shares how innovation truly happens when technology and the human touch work together — not against each other.If you're leading in retail, tech, or brand innovation, this conversation will change how you think about growth, data, and creativity.Looking for space to pause and realign before the year takes off?Our Vision & Values Mapping Workshop offers a thoughtful, guided experience to help you design the year ahead with intention. Explore details and register at: https://www.wilempowered.com/kickstart-2026/

01) NoMosk x WINTERBORN x Daniela Presta - Little Miracle (Extended Mix) [FUTURE SEQUENCE] 02) Ignacio Kriman & Gerlach Gerrit - Ignition (Extended Mix) [ Reason II Rise: UPLIFT ] 03) Jason Darkness - 9 Hours (Dreamira Extended Remix) [ RockRiverRecords ] 04) Steve Allen - Plural (Extended Mix) 05) Shogun feat. Jennifer Rene - Under My Skin (N-sKing Remix) [SERENDIPITY MUZIK] 06) Robinito - Wings of Light (Extended Mix) [ Reason II Rise Music ] 07) Ronski Speed featuring Maya Palmer - We Collide 08) Stargazers & Paulina Dubaj - Break My Fall [Amsterdam Trance] 09) Andy Jay Powell & DJ Fait - Automatic Daydream (Andy Jay Powell Extended Mix) [ ZYX TRANCE ] 10) Para X - Atmospherica (Extended Mix)

Keith shares how a recent trip to Colorado Springs and a changing commission landscape reveal what really matters for real estate investors now From there, the show dives into the three levers investors truly control—leverage, operations, and relationships—before welcoming lender Caeli Ridge to break down the major mortgage options for investors. You'll hear how different loan types fit different strategies: from your first conventional "golden ticket" loans, to DSCR loans based on property income, to short-term fix-and-flip and bridge loans that prioritize speed and flexibility.  The episode then moves into how more advanced investors can scale beyond 10 doors, navigate debt-to-income and tax strategy, and even approach financing for short-term rentals—all while highlighting why having the right lending partner and long-term plan can make a big difference to your results. Episode Page: GetRichEducation.com/591 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com GRE Free Investment Coaching: GREinvestmentcoach.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  For predictable 10-12% quarterly returns, visit FreedomFamilyInvestments.com/GRE or text  1-937-795-8989 to speak with a freedom coach 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— GREletter.com  Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript:   Keith Weinhold  0:01   Welcome to GRE. I'm your host. Keith Weinhold with new ways to think about your life through goals momentum in the real estate market. Then learn about various mortgage loan types, conventional DSCR, fix and flip, bridge loans, short term rental loans and more. Knowing which loans to use can save you millions and learn the fatal mortgage mistakes you must avoid today on get rich education.   Corey Coates  0:29   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 and 188 world nations. He has a list show guests include top selling personal finance author Robert Kiyosaki. Get rich education can be heard on every podcast platform, plus it has its own dedicated Apple and Android listener phone apps build wealth on the go with the get rich education podcast. Sign up now for the get rich education podcast or visit get rich education.com   Speaker 1  1:14   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  1:30   Welcome to GRE from Winnebago, Minnesota to Winnipeg, Manitoba, and across 188 nations worldwide. I'm Keith Weinhold, and you're listening to get rich education, the voice of real estate investing since 2014 before we get into the mortgage discussion, where we'll discuss five or 10 different investor loan types and their various pros and cons, which could save you millions over the course of your life. I shared with you that I traveled to Colorado A couple weeks ago, for a goals retreat hosted by the real estate guys, top notch event, I spent extra time there in Colorado Springs, because I find it really livable, and I spent five hours with a local realtor there, one day out and about visiting properties in the area I'm potentially looking for a home or a second home. And by the way, how is this for a price range? The realtor wanted to know what my Buy Box is, and since I'm just learning the Colorado Springs market, I told him I'm willing to spend between 400k and 1.2 million on the property, yeah, pretty wide range, a mile wide. Fortunately, my other Buy Box criteria are more narrow and specific, and I have got to say, I'm surprised at how low the area's home prices are. I thought they'd be higher. Interestingly, before touring homes, my buyer agent wanted me to sign a six month exclusive representation agreement. Fair enough, that's standard stuff. It was on the agreement, though, that I as the buyer pay a 3% commission up on the purchase, and the seller would presumably pay the other 3% to make up that total 6% commission for the agent compensation. Well, historically, the seller paid the entire 6% and this, of course, goes back to the NAR settlement, and that ruling that became effective in August of 2024 you probably remember this, and I talked about it on the show back then, and how it's not really that big of a deal, especially to investors like us, because at GRE marketplace and with our GRE investment coaching, it's a direct model. There's zero commission on either side, and then you, in turn, get some of those savings, but out in the larger world and in the owner occupant world. Well, that rule change that started a year and a half ago. It means that sellers are no longer required to pay the buyer's agent. Instead, the fee is now negotiable between buyers and their agent. The other change is that property listings no longer display the buyer agent's commission offer. But here's what's interesting in practice, and what really ends up happening in the end, in most cases, is that the seller still pays the full commission and compensates both agents that full 6% sometimes it's 5% instead of six buyers and buyer agents, they still operate under the seller pays. And that's largely because that has just been the norm. It's what's seemingly always been done. It's what buyers are used to. And the reason that that often persists. Is because the seller is the party in the transaction that has that thick equity in the property, deep equity, and buyers are the ones often just trying to scrape together whatever they can for a down payment and closing costs. Buyers are not going to be able to come up with another 15k for an agent commission when they're buying a 500k property, that's 3% especially today, this is true because American homeowners the seller then still have record equity positions of about 300k an all time high. Nearly half of mortgaged homes are considered equity rich. What does equity rich mean? It means that the loan balance is less than half of the home's value, yeah, the seller has the means to pay the full commission. So the point is, in practice, the seller, yeah, still pays that full five to 6% commission in the overwhelming majority of cases, and the buyer pays nothing. And if that does change, it's going to take a long time. You know, a lot of these evanescent real estate stories that people think are going to have some seismic impact. It rarely does, like this erstwhile NAR ruling or the 50 year mortgage proposal or banning big institutions for buying more single family rentals. You know, this stuff is like one little baseball sized asteroid striking an entire planet. I mean, it's like a barely discernible impact. Real estate is anchored in one place like Jabba the Hut. It is solid. These stories are interesting, but they're not impactful.   Keith Weinhold  6:52   Instead, I've mentioned it before. What are three things you control in real estate that really matter. And these are evergreen things. First, it's, how many dollars are you leveraging? That's where your wealth is going to come from. In fact, we're going to discuss that today with mortgage loan types. Second, what's the efficiency of operations on your existing properties? And thirdly, what is the quality of your relationships? And actually, we're addressing the third one today too, talking to a lender that you could make part of your team. You can control these three things. They're unyielding, they're evergreen, they're long term, and they all have gratitas and impact those three things, leverage operations and relationships. Now my agent drops me off and picks me up from my hotel here at the Broadmoor in Colorado Springs. This was also the event hotel for the goals retreat. I just extended my stay to hang out in the area. Look at real estate, do some climbing on Pikes Peak. Pro tip for you on hotel room rates, talk to a human being before I booked my stay, I called the front desk and asked them if they could extend the attractive event room rate to more nights on my extended stay. And they agreed. You might have heard of the Broadmoor. It is well known. It's been here for more than 100 years, and it is such a fine place to stay. Let me tell you about this special piece of real estate. In fact, I've thought it through, and I will now hereby proclaim that it is the finest us hotel experience that I've ever had in my life. I say us because I stayed at an amazing place in Dubai. But what makes the Broadmoor stand alone? It's the details and the service. A lot of hotels are nice, but this is on a different level. And I don't say this to brag, and this is because you probably can afford to stay here, yeah, like I have. You might have paid more elsewhere in your life for a lesser hotel, although I am here in the low seasons. Okay, now, sure, you've got views of the Rockies and a man made lake and waterfall and even a beautiful chandelier in my hotel room. The thing that sets it apart, though, is you have this service that feels old world and not corporate. That's what makes the difference. The Broadmoor is horse themed, since horses are a symbol of the American West. There are about 800 rooms here. It's kind of like a self contained adult Disneyland championship golf courses, a world class spa, even an outdoor lap swimming pool like that has lanes that I swam in one morning for. Fine dining, casual dining, access to hiking, fly fishing, even falconry, zip lines, tennis, pickleball pools. Take the cog railway to the Pikes Peak, Summit. Okay. Now, other nice hotels have attractions that are sort of like that, but when I rave about the service, it's the little things they are knocking on my door before 10am to come in and clean the room. And you know how so commonly, when you first check into your hotel room and you look in the closet, there are not enough clothing hangers, and they're all like stupidly mismatched. These all match. They're all nice wood, and there are plenty of them. So I'm talking about these details. I'm telling you. I had dinner at one of the broadmoor's restaurants the other night. I just happened to take a close look at the tag on the napkin. Sure enough, it is made in Italy. I mean, jeez, no detail is overlooked at this stellar place. In fact, here's what I'll do. You know, I'll just completely stop my Colorado Springs home search right now. Instead, I'm going to stop down by the Broadmoor front desk, tell him to give me some moving boxes, because I'm moving into the Broadmoor and I'll be here for the next decade. Start forwarding my mail here and everything. And hey, at least I was courteous enough to give them notice. I can't stay here too long, or my standards will be rising faster than my net worth. Yeah, yeah. Can't go to sleep with a mint on your pillow every night, I suppose.    Keith Weinhold  11:38   Now, the reason I came here now is to attend that aforementioned goals retreat, and let me take all the time and all the resources that I put into being here and distill them into just a few of the most salient takeaways for you. Goals should be smart, strategic, measurable, actionable, relevant and time based, they must be written down. Now, how would you describe yourself to somebody else that didn't know who you were? Write that down next. What do you think your reputation is? How would others describe you? Write that down now that you can see how you describe yourself and how others describe you, you can see that there's a gap there. That gap is what you need to work on. I learned that goal should be written in the present tense, not the future tense. I did not know that before. For example, say it is January 1, 2035, and I own $5 million in rental property. That's an example of how you would do that. So take future events and write them in the present tense. Other questions at the goals retreat that got really introspective are, what are you really going to do with your life? And write down that answer. Sheesh, that is tough. And if you think that's a hard question for you to ask of yourself, the next one is even harder. It's simply why? Why is that where you're going with your life? And then write that down? I mean, would you answer questions like this for yourself? And you really think about it, that can occupy a new segment of your entire headspace. It is a big cognitive load, and a last one to leave you with is to dream not just big, but gigantic. Get it out there, write down a dream that interests you, but it's so grandiose that you're actually embarrassed to tell someone about this stretch dream, for example, for me, it's the first person to walk on another planet. No human has ever done that, and this would most likely happen on Mars. See, this is so grand that is sort of embarrassing for me to even share that with you. It almost makes you sound Loony, like I would have to learn so many new skills to travel to and walk on Mars. But you should write down a bunch of other goals too. You're sort of brainstorming on goals, attainable goals. Recall that is the A in the SMART goals acronym, you want to write down a bunch of attainable ones, not just that stretch one. So for attainable ones, one of them is for me to become the highest man on earth. To give you an example. And I attempted that goal two years ago, and I failed. I told you about that at that time. But see now, compared to my embarrassing stretch goal of walking on Mars, the highest man on earth feels attainable, I know what it takes to achieve it, and it's worth doing, ah, but it's a grind to get there, yet it would be worth it. Those are some quick take. Ways from the real estate guys goals retreat while on stage the event host Robert helms he took a minute respite from the goals material, and he recognized the fact that, as he calls it, the four OG real estate podcasters are all in the same room. One of them is helms himself, and now I feel like the other three are all older and doing it longer than me. I was one of the four that he mentioned. But you know, there is only one podcast that was mentioned from stage, and that is that Robert helms told the audience that they should be listening to the get rich education podcast. That was a nice thing to say, and he is always a gracious giver.   Keith Weinhold  15:45   Next, we're talking about four major loan types, conventional DSCR, fix and flip and then bridge loans. When we discuss the first two parts of it could sound repetitive, but you'll see why we do this, because then you'll be able to compare it to nichey loan types that we discuss, for example, the speed of a bridge loan, where you can get funded in just one week, compared to a slower conventional loan. The mortgage landscape changes. I still remember how in 2012 we had still somewhat freshly emerged from the global financial crisis, and back then, you could only get four conventional loans, four rental properties, not 10 like you can today, 20 married. So get your loans while you can, you probably won't always be able to get 10 loans. We'll start with loan types that are more for beginners, and then we'll get to advanced material. Let's welcome back one of our favorite recurring guests.   Keith Weinhold  16:54   You can make millions more throughout your life by understanding mortgage loans. This is key, and today it's the return of the woman that's created more financial freedom through real estate than any other lender in the entire nation, because she's the president of ridge lender group. Hey, it's time for a big welcome back to the incomparable, yet somehow still so approachable Chaley Ridge   Caeli Ridge  17:16   my Keith, thank you for having me. I love being here. I love what you're doing. It's my pleasure, sir.   Keith Weinhold  17:23   And our followers, our listeners, have been approaching you since 2015 you're one of the longest running guests, truly one of the OGS around here at GRE and now Caeli, before we discuss loan types. You know, we don't really talk politics on this show rather policies, and we're in the midst of a presidential administration that often, in the name of the word affordability, is trying to supremely shake things up in the housing market. Help us dissect what matters and what won't.   Caeli Ridge  17:58   I have found that at least as it relates to current administration, whoever that might be, I wait for the buzzwords or the taglines to become the actual policy. Like you said, That's a good point in this case. You know, you've got things floating around, like the 50 year mortgage cutting off the hedge fund guys and that kind of thing. Whether or not, those things come to fruition. I'm happy to give my opinion on them. I do not think that it's going to move the needle much for the people that you and I serve with regard to I mean, just taking them one at a time, I don't think that the 50 year is going to come to fruition. Just first and foremost, if it did do, I think it would be a good idea for a homeowner, probably not, but for an investor, maybe if there's some way that we can keep our payment lower, given the maturity date of a mortgage for an investment property is usually about five years. I mean, I know that this is a 30 year fixed mortgage, but statistically speaking, the average shelf life of a non owner occupied mortgage is about five years. So getting a 50 year amortization, if that were going to reduce the payment, I don't think is a bad thing for an investor, however, and this may get a little bit technical for the listeners, so I apologize in advance if we were to go to a 50 Year am the adjustments, something called, and you and I have talked about this before, something called an llpa, that stands for loan level price adjustment, I think would be such that it could end up defeating the purpose of having the longer term amortization, because I think the interest rates would be higher and I think they may offset so that was a long way to say. One, I don't think it's going to happen. I don't think it's actually going to get to its final resting place. And two, would it be a good idea for investors, yeah, I think it would be worth considering if it kept the payment lower. Okay, that's that as the other piece to cutting off the hedge funds, the big, you know, BlackRock, some of the big players, and giving them access to the residential housing and first right of infusion or etc, because they've got such deep pockets. You. It's such a small amount to what our individual investors are going to have access to that I don't think that that moves the needle either. So I don't know if I'm answering the question, except to say anything that they're going to tout, I would wait for it to actually become written in stone and pass by the rest of the powers that be before I would get excited about or concerned about any of it.   Keith Weinhold  20:21   This is pretty parallel with what I've been telling our listeners. All these things seem to make splashy news, but I haven't seen anything that's going to make a deep impact yet, whether it's the 50 year mortgage, which probably won't even come to fruition, or if it's doing these mortgage bond buy downs in order to bring more liquidity into the market and bring rates down, or if it sees any of these other things being discussed with these institutional investors, since they already own such a smaller proportion of the housing market than a lot of people think, we'll discuss seasoned real estate investors and their loans shortly, but first for newer real estate investors, you Know, chili, I kind of think of four or more loan types that a beginner should be familiar with. I think of conventional loans, dscrs, fix and flips and then bridge loans, the first one with conventional loans. What are the basics that someone should know?   Caeli Ridge  21:17   So first of all, you should know that there are 10 of these. We call them the golden tickets. I'm pretty sure I coined this, okay, 100 years ago, the golden ticket. We call the conventional aka Fannie Freddie, aka agency. They go by different names, but they all mean the same thing. We call them the golden tickets because it's the highest leverage and typically at the lowest interest rate you can find. Now I do have a hook in our conversation today about that. I'll get we'll get to it. There are 10 of these per qualified individual. So one of the first things that I would tell somebody is, is that if they are a partnership or a husband and wife team, you want to make sure to keep the debt obligation separate, because if you want to maximize these golden tickets, let's just say it's a husband and wife team. You each have, per qualification access to 10, and that includes a primary residence. In fact, let me just take a quick second and define what counts in the 10, because some people get this wrong. So the 10 golden tickets are counted by any residential property, single family, up to four Plex that has a loan on it, where the loan is in the individual name or personally guaranteed by the individual. That's where people get tied up. So if they went out and got a kind of more of a commercial type loan, that was in an LLC name, for example, but they signed a personal guarantee, per Fannie Freddie guidelines, that particular mortgage is going to count against the 10. So those would be some of the first pieces of news or detail I would give them about conventional    Keith Weinhold  22:40   for married couples, don't take ownership in both the husband and wife's name, either the husband or the wife. That way, you can get to 20 rather than 10. And yes, you do have to be mindful that your primary residence does count in that 10 or 20, whatever it might be. Anything else quickly with conventional loans, LTVs so on,    Caeli Ridge  23:01   yeah, LTV can go to 85% loan to value. So you get a little bit extra than you're going to get in some of the other loan product types. It will have PMI, private mortgage insurance, anything over 80% LTV will always have PMI on a more conforming, conventional basis. So keep that in mind. But the factor is pretty low. I would encourage people that are looking to stretch the almighty dollar. Do the math. Look at the 85 with PMI against, say, an 80% and see what are you giving up versus what you're getting. And then qualification stuff, you guys, my dumb joke, it's Keith's favorite. I'm sure vials of blood and DNA samples are sort of required for the Fannie Freddie loans. So just be prepared to supply or submit us the tax returns and pay stubs and bank statements and and all that stuff,   Keith Weinhold  23:44   you'll feel like you're getting fingerprinted almost for a conventional loan qualification. And the second one that I brought up DSCR loans, that's short for debt service coverage ratio. And these mortgages are pretty standard for rental properties. They're underwritten based on a property's income potential. So you know, the way I think of dscrs Chaley from the lender's perspective, is that sustainable cash flow is what matters. The rent has got to support the property's monthly mortgage payments. So we talked to us more about dscrs.    Caeli Ridge  24:15   Yeah, I love this product, and this is for somebody that either can't fit into the conventional Fannie Freddie box, or maybe they've exhausted their golden tickets and they're graduating and moving on. This is a great option that will reduce the amount of vials of blood and DNA samples that you're going to have to submit. It still provides for a 30 year fixed mortgage. The leverage is roughly the same, 80% in most cases, on a purchase. And to your point, the gross income divided by the principal, interest, taxes, insurance and Hoa, if it's applicable, is the simple formula, the easy method I'll give people, just to kind of solidify that math, is that if the gross rents were $1,000 a month, and if the PI TI was $1,000 a month, when you divide that, your debt service is 1.0 Now you can go as low, believe it or not, as low as a point seven, five, DSCR, they have those available be ready for the interest rate to get a little hair on it. Okay, it's going to be higher than what the 1.0 and above is going to be. But you can go as low as point seven, five, those are going to be for the investors that have found a property, maybe in distress, and they cannot show the current market value rent, perhaps, and it's on the low end. So you can still get that done at point seven, five, just be ready for a higher interest rate.   Keith Weinhold  25:30   So the DSCR loan an alternative for you, which might be especially useful, like Chaley touched on, if you've already exhausted your 10 golden ticket. Fannie Freddie loans, a DSCR of 1.2 for example, means that your rent income needs to exceed your principal, interest, taxes and insurance payment by 20% or more. That's what we're talking about here. And then Chile, those were more of loans for the buy and hold type of investor. Tell us about fix and flip loans.    Caeli Ridge  26:03   Yeah. So these are shorter term loan that will allow you to include not just the purchase of the property, but also some renovation or rehab money if you need that. And we're going to be looking at an ARV after repair value. So you've got a purchase price, you've got your renovation or scope of work budget. And then we're looking for an ARV with the ARV to be somewhere around 75% so what that means, if you've not heard of this before, you're going to take, let's say, $100,000 value. And if we want the ARV to be at 75% we're going to lend 75,000 is kind of the mix there. Those are quicker loans. You're going to be paying much higher rates on those. You know, between nine and 13% depending on the deal. The points are also going to be a little bit higher, but a great option for that quick turn and burn where you know your deal has enough skin in it and you can recapture all your capital and make a good tidy profit on it.   Keith Weinhold  26:53   We're talking about basically fixer upper loans here with Chaley Ridge, the president of ridge lending group, yes, these are jalopies that rarely qualify for traditional bank financing. And oftentimes, when I think about these fix and flip loans, I'm thinking that often there is interest only flexibility with regard to those higher interest rates that you need to pay. And I think of it as, you know, a shorter term loan that you've got during your renovation period, oftentimes 12 to 18 months. Does that sound about right?   Caeli Ridge  27:24   Yeah, 6,18, even 24 months. And to your point, yes, all of these are going to be interest only. And one of the cool things is about these loans is, is that, if there's enough room in the deal, right, based on what you need to borrow and what we think the ARV is expected to be, you don't even actually have to be making those interest payments. You can build it into the final payout when we go to refinance you out of this short term loan, or you simply sell the property and pay off that loan. So for example, let's say that your interest only payment is $1,000 a month, okay? And the value of the property is going to be $200,000 and you only took 120 okay, we're going to be well within that 75% ARV. You can build in that $1,000 say, for 12 months, there's $12,000 and just add it to the outstanding balance that you started by owing, and not have to be making those payments on an ongoing basis. It's not rented, right? So it might be nice to be able to factor that in to the actual payoff when you go to refinance that if it's a fix and hold versus go to sell it on a fix and flip.   Keith Weinhold  28:31   Now, long term, we know that the big gains for real estate investors really come from that leveraged appreciation getting that loan. But sometimes there are situations where we might want to act as a cash buyer. And that brings up this fourth of four loan types that I brought up, the bridge loan, short term loans that can temporarily finance a property purchase while you're waiting for a longer term loan to come through. The bridge loan, so I think of it as a pretty speedy loan, if you sort of want to act like you're an all cash buyer.   Caeli Ridge  29:04   Yeah, I like this, and in many ways it's similar to a fix and flip interest only. Obviously the term is going to be shorter, six months, 12 months, up to 24 months, and based on largely relationship, the bridge loan for the purpose that you described, really comes into play for an investor that we know and we're comfortable with, we can fund those inside a week, for somebody that we've done several of these loans for. So for those that need that really quick turn, once you've established yourself as a seasoned, experienced investor in that space, those are pretty slick and easy to get through.   Keith Weinhold  29:39   Why would someone use a bridge loan, rather than a fix and flip loan.   Caeli Ridge  29:43   So if they're in a very competitive market, that might be another option, because those are going to be faster. The bridge loan is going to be faster where they need to say that they're an all cash buyer and they only need seven days to close, or whatever it is. It depends on the municipality in the state. But what if you're at the courthouse steps? And you need cash quickly. Sometimes it needs to be immediate. So that might not be applicable in this case, but if you put the bid in, and you win the bid, and you've got, you know, three days to perform, usually we can get those done. So it's circumstantial. Those would be two variables or two scenarios that that would apply to   Keith Weinhold  30:17   the bridge loan gives you the advantage of speed, but that speed can come at a cost.   Caeli Ridge  30:22   Oh yeah, yeah, you're going to be paying probably three points, maybe four points, and it's short term interest, 13, 14%   Keith Weinhold  30:30   so with these four loan types that we've discussed, conventional DSCR, fix and flip and bridge loans, you can kind of see that there is a loan for most every investment scenario, and there's no reason to rely on only one type, a flipper. Might start with a short term fix and flip loan or a bridge loan and then later refinance to a DSCR or a conventional loan. So consider mixing and matching based on your needs. You're listening to get rich education. We're talking with Ridge leninger, President Taylor Ridge, more when we come back, including steps for more advanced investors, I'm your host. Keith Weinhold   Keith Weinhold  31:06   mid south homebuyers with over two decades as the nation's highest rated turnkey provider, their empathetic property managers use your return on investment as their North Star. It's no wonder smart investors line up to get their completely renovated income properties like it's the newest iPhone, headquartered in Memphis, with their globally attractive cash flows, mid south has an A plus rating with a better business bureau and 4000 houses renovated. There is zero markup on maintenance. Let that sink in, and they average a 98.9% occupancy rate with an industry leading three and a half year average renter term. Every home they offer you will have brand new components, a bumper to bumper, one year warranty, new 30 year roofs. And wait for it, a high quality renter in an astounding price range, 100 to 150k GET TO KNOW Mid South. Enjoy cash flow from day one at mid southhomebuyers.com that's mid southhomebuyers.com    Keith Weinhold  32:08   you know, most people think they're playing it safe with their liquid money, but they're actually losing savings accounts and bonds. Don't keep up when true inflation eats six or 7% of your wealth. Every single year I invest my liquidity with FFI freedom family investments in their flagship program. Why fixed 10 to 12% returns have been predictable and paid quarterly. There's real world security backed by needs based real estate like affordable housing, Senior Living and health care. Ask about the freedom flagship program when you speak to a freedom coach there, and that's just one part of their family of products, they've got workshops, webinars and seminars designed to educate you before you invest, start with as little as 25k and finally, get your money working as hard as you do. Get started at Freedom family investments.com/gre or GRE, or send a text now it's 1-937-795-8989, yep, text their freedom coach, directly again. 1-937-795-8989,   Keith Weinhold  33:19   the same place where I get my own mortgage loans is where you can get yours. Ridge lending group and MLS, 42056, they provided our listeners with more loans than anyone because they specialize in income properties. They help you build a long term plan for growing your real estate empire with leverage, start your pre qual and even chat with President chailey Ridge personally, while it's on your mind, start at Ridge lending group.com that's Ridge lending group.com   Blair Singer  33:53   this is Rich Dad, sales advisor, Blair singer. Listen to get rich education with Keith Weinhold. And above all, don't quit your Daydream.    Keith Weinhold  34:09   Welcome back to get rich education chili when we go beyond this beginner stage that we've been discussing, how about for an investor just trying to scale to 10 doors worth of one to four unit properties. Now, are there any strategies there or more of a loan order that you would recommend in getting up to your first 10 you know   Caeli Ridge  34:29   I think the strategy starts with calling your lender, ideally Ridge lending group, and having that deep strategy call that, that discovery call, so that we can really understand and plant some seeds that say, Okay, Mr. Jones, these are your qualifications today. This is where you want to be in a year or 10 years. These are the steps that are going to be important that we are mindful of and we take to accomplish and reach those milestones. It's really important to have that baseline understanding of what is your debt to income ratio on day one, what are your assets? Sets. What is your credit? Where do you want to be in a year or 10 years? Right? Do you want 10 properties in a year's time? It's going to be a very different conversation than if you're going to slow roll this and want to establish 10 purchases or 10 investment properties over 10 years. So identifying those details is going to be part one, and then next, in terms of order, I would say, largely the higher price point properties, typically, I would say, put those in one through six. And the reason that I'm saying that is is that the underwriting guidelines under conventional financing, they will change based on how many finance properties you have. So of all of the inner working guidelines and things that go into securing a conventional mortgage loan, the three top most heavily weighted are going to be debt to income ratio, credit score and assets. Okay? And within each one of those, the marker or the qualification guideline changes as you evolve and acquire more property. So the higher up the ring you go, or the rung that you go to 10, the more restrictive the guidelines are going to be. So I would typically say, get the higher price point properties go into maybe one to four, one to six, if that's part of your strategy and your diversification of portfolio ownership. Then after you've established having two or three or four properties and that higher price point it as it gets harder to qualify, potentially, if your debt to income ratio is a little bit tight, you've got the smaller loan sizes that might be less impactful in debt to income ratio. All of this is very subjective to the individual's qualifications and needs, of course, but that might be one rule of thumb that I would take   Keith Weinhold  36:39   gosh, this This is absolute gold in helping you structure the architecture of a growing income property portfolio. And we're coming up on this Super Bowl, and whatever mortgage lender advertises for the Super Bowl or has some big, splashy campaign nationally, you know they are not the ones that are going to have conversations like this for you, they might be fine for buying a primary residence, but this is why you want to have a long term strategy and work with a lender that's aligned with you on exactly that sort of thing. And Chaley, is there a specific way in which one can avoid hitting the Fannie Freddie loan ceilings too early if you haven't already touched on it.    Caeli Ridge  37:22   Yeah, very good question. You know, I think that this is going to come down to a debt to income ratio conversation. It's easy enough to ensure that we contain assets and credit. Those are easier conversations. The debt to income ratio is the piece that's more complicated and can get away from an investor without them even knowing it. You don't know what you don't know, right? So I would say that debt to income ratio and making sure that your lender again, hopefully Ridge lending, because we know this like we know our own faces, making sure they know how to structure and provide feedback and consult on that schedule E, part of the beauty of real estate investing is the tax deductions. Right? Many people get into real estate investing, not for the cash flow, not even for the appreciation, but for that tax strategy, because they're high wage earners, or whatever it may be, and they're sick of paying x in taxes. So the debt to income ratio is key in scaling and making sure you can continue to qualify for those loans. The conversations that we have with our clients really go deep about where we can maximize our deductions to ensure that we get the tax benefit without precluding our qualification on a conventional underwriting basis in the DTI category.   Keith Weinhold  38:35   Now, during my growth as an investor, when I got above 10 doors, one gets above 20 doors. When one gets to 216 doors, I began where I needed to qualify more on a DSCR basis, where the lender is looking at the properties qualification, more so than me. So are there any other thoughts with regard to how one can set themselves up for success in really going big and well beyond 10 doors   Caeli Ridge  39:03   absolutely so once we've exhausted the Fannie Freddie, and I think one of the real value adds about Ridge is that we are not a one size fits all, and we are extremely holistic versus transactional. So having that first conversation and understanding what those goals are, so that we can pivot as we need to maximize the golden tickets, whether that be 10 to 20, right? If you're in a marriage or a partnership or whatever, and then setting up for the DSCR loans when the time comes, and taking advantage of those, there is no limit to how many DSCR loans we can get for one individual. We have yet to file an individual that we've had to say no, and we've done quite a few of the high, high acquisition investors, so I don't expect that to be an issue, but yeah, I think it's about planning, planting those seeds, creating roadmaps together and have those smart discovery conversations.   Keith Weinhold  39:50   Now, as you grow, one way you might diversify is to have perhaps at least a part of your portfolio in short term rentals. So what I. Comes to getting loans for sort of Airbnb or VRBO type properties. What does one look for there? How much does the landscape change versus the longer term rentals that we've mostly been talking about here?    Caeli Ridge  40:10   Yeah, I think that the differences are going to be about purchase versus refinance. If we're just talking about purchases, let's kind of try to keep it in one lane. If we're talking about purchasing a short term rental, you may be limited on leverage. You might lose a little bit of leverage, 5% let's say you could get to 75% and maybe on a short term they're going to back it off to 70% LTV, so there may be reduction in that loan to value. And the way in which we're going to quantify the income is absolutely important to share with your listeners on a purchase transaction, we have access to things like an appraisal. An appraisal is going to give us some median rental income, whether it be long term or short term, that we will use to offset a new mortgage payment if that's needed for the individual's debt to income ratio qualification. Now, if they don't need the rental income to qualify, then it's a non issue. But if they do, like most of us, need that rental income to absorb this new mortgage payment that we are securing for them, how that's going to quantify is important. So if it's not in a short term rental area, let's just say it's kind of off the beaten path, and there may not be enough data points to support the income that you need. It's important to know that up front versus way down the rabbit hole, when you paid for appraisals and you're all the way through the transaction and earnest money might be off the table if you had to cancel that kind of thing. So really important to understand the numbers in advance, I would say, when we talk about short term rentals and how the income is going to be quantified from an underwriting perspective,   Keith Weinhold  41:43   why does a borrower often need to make a higher down payment on a short term rental than they do a long term rental?   Caeli Ridge  41:49    You know, I think that in secondary markets, as we talk about mortgage backed securities and things like that, it's looked at as a higher risk. A short term rental is going to be a higher risk than just the stable long term, long burn tenant is going to be there and they've got their lease for a year, two years or whatever, at a time, the short term rental is more volatile and it's seasonal. It can be I mean, there's all those different factors, so higher risk means more skin in the game for the investor.   Keith Weinhold  42:13   That makes a lot of sense. Does that higher risk also translate into a higher mortgage rate for short term rentals than long term rentals?   Caeli Ridge  42:18    Fannie Freddie versus DSCR The answer is no. On the Fannie Freddie side, the interest rate's not going to change on a DSCR loan. Yes, it can be slightly higher, usually about about a quarter of a percentage point on a short term versus a long term.   Keith Weinhold  42:33   Now, are there any particular markets that lenders want to avoid with short term rental loans?   Caeli Ridge  42:39   No, as long as the property is habitable, and all the other metrics fit Qualifications and Credit and assets and all that stuff. No, there isn't a market that we're going to have any issues with now. We do get the notifications for natural disaster areas, and as that relates to the appraisal and things like that, if it's in a natural disaster area or zone, we may have to hold funding until after the disaster is over, and then we can go and take more pictures and make sure it's still standing and there's no major issues. But otherwise, aside from that, as long as it's habitable, no, there is no market restriction.   Keith Weinhold  43:12   Yes, with that variability of income for short term rentals, you can understand how a lender would be more careful in making a loan, and would want you, the borrower, to put more skin in the game for a short term rental. Well, Caeli, overall, what should an investor do in the next 24 hours to make themselves more lendable before contacting someone like you?   Caeli Ridge  43:36   I would say the answer is sticky, but call rich lending group. That's how you're going to make yourself more lendable. And the reason that I can say that is is that everybody's qualifications and needs and goals are inherently different. So calling someone that understands this landscape and can navigate the battleship in the creek like I like to say, that's the visual aid for those of you that need the visual is the first key. And with that conversation, we're going to be able to identify for you specifically what you would need to do to become more lendable. And it may be nothing   Keith Weinhold  44:07   well over there, Chaley, you're growing. You do loans in almost all 50 states. The GRE podcast has more than 5.8 million listener downloads, and you have helped countless GRE listeners acquire smart investor loans for fully a decade now. Just amazing. So talk to us about all of the loan types that you offer investors there at ridge.   Caeli Ridge  44:30   My gosh. Okay, so I think one of the real value adds for us is that we have such a diverse menu of loan products. We touched on a few of them already. So we've got the conventional Fannie Mae Freddie, Mac stuff. We've got our DSCR loans. We have bank statement loans, asset depletion loans. I can touch on those if you want. Keith, we have our short term bridge fix and flip. We have our All In One my favorite, first lien, HELOC we have second lien HELOCs. We have commercial loan products, and commercial can apply to residential and commercial property. A cross collateralization, commercial for residential properties. That just means, if you're putting 10 single families into one blanket loan, that would be cross collateralization, or if you're buying a storage unit that's straight commercial, and probably even more than that, ground up construction, there's really not a limit to the loan products that we offer, specifically for investors. The only thing we don't have, I would say in our arsenal is bare land loans. Those are hard to come by   Keith Weinhold  45:24   It sounds like you recommend a call in order to get some of that back and forth, to learn how you can best help that investor. But tell us about all the ways that someone   Caeli Ridge  45:32   can get a hold of you. Yes, there's a few ways. Of course, our website, ridgeline group.com, you can call us toll free at 855-747434385, 747-434-3855, 74, Ridge. Or feel free to email us info at Ridge lending group.com   Keith Weinhold  45:49   and you might get lucky. Hey, spin the wheel. Chaele does get on the phone and talk to individual investors herself too. So Chaley, it's been valuable as always to cover all these different loan types for beginners, and then what one does when they advance beyond that. It's been great having you back on the show.    Caeli Ridge  46:09   Thank you, Keith. I appreciate you.   Keith Weinhold  46:16   Oh yeah, a lot to learn from Chaley today. You've got mortgage rates three quarters to 1% lower than they were a year ago. At this time, in fact, last month, they ticked below 6% for the first time in years, and their lowest level in over three years. But when you introduce geopolitical uncertainty, well, that tends to make rates tick up again. Now, just what does happen when you have a lower overall rate trend like we have? Well, in this cycle, it's already spurred an increase in housing sales volume. It surged to 4.3 5 million in the latest reporting month, and that is the hottest annualized pace in nearly three years. Some of the same people who said, wait until rates fall, they're about to realize that prices didn't wait. Demand comes back fast. Inventory doesn't if mortgage rates take another leg lower, we could see quite a refinance wave in balanced markets or in supply constrained markets, bidding wars could follow. Now I've shared with you before that I totally do not predict interest rates. I don't know if anyone should. It is a great way to be fantastically wrong and supremely waste a lot of people's time. Instead, I think it's more efficacious for you to be able to interpret the signs that can trigger a further rate drop. Those signs are a weak jobs report that tends to bring lower rates because the labor market needs the help. So does softening wage growth, GDP below expectations, inflation continuing to cool, or a pickup in US Treasury demand. These are all signs that can lead to even lower rates. In fact, right now, with already lower rates and higher wages, real estate is more affordable than it's been in about three years, but overall, longer term, yeah, income properties still feel somewhat less affordable. It's less affordable than it was in pre pandemic times. That's for real for US investors, though, affordability is less about the price of the property, it's about whether the property pays for itself and grows your net worth while inflation does the heavy lifting for you, that's why it still works for us as investors. Higher prices don't kill investors inaction during inflation does you're not so much buying a say, 350k property. You're controlling it with 70k while your tenant and inflation do the rest. We don't rely on hope or appreciation. We start with inflation, tax benefits and debt pay down, and then appreciation typically happens too. A lot of times, the question for us goes beyond whether or not a property is affordable. The question is whether owning an investment property is better than inflation compounding against us, which is an investor mindset for this era, Ridge landing gear. President Chaley Ridge is a regular guest here because the mortgage space is so dynamic and things change a lot. For that reason, we expect to have her with us every few months this year, I'll see you next week. I'm your host. Keith Weinhold, don't quit your Daydream.   Speaker 2  50:01   Nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of get rich Education LLC, exclusively   Keith Weinhold  50:30   The preceding program was brought to you by your home for wealth building, getricheducation.com   

In this episode, I'm joined by Jon Callaghan, co-founder and managing partner at True Ventures, and Julie Bornstein — CEO and co-founder of Daydream, founder of The Yes, and former COO of Stitch Fix — to break down what investors really evaluate in the first 18 months of a company's life. Drawing from their shared history as investor and founder, we talk candidly about runway, hiring before certainty exists, conviction versus ego, and how trust between founders and investors gets tested when plans change.  Julie explains how she approached budgeting and milestones for The Yes as a non-technical founder, while Jon shares how early-stage investors assess learning, decision-making, and leadership long after the pitch meeting ends. RUNTIME 50:28   EPISODE BREAKDOWN (2:43) Jon: “Julie and I met in graduate school.” (4:24) Julie chose a different VC firm for her first seed round at The Yes (10:33) How would Jon have assessed The Yes if he didn't know Julie? (13:14) Julie: “Runway is your best friend and your biggest gift.” (14:59) How non-technical founders can sketch out a financial model  (22:37) Jon: “There's an immense river of goodness that flows underneath Silicon Valley.” (25:30) How did True Ventures size up SAM for The Yes? (29:00) Only work with engineers who understand your problem (31:25) Some of Jon's post-check expectations for founders (41:44) What are some questions founders should ask VCs in their first meeting? (45:42) One experiment a pre-seed/seed-stage founder can try next week (48:14) The final question LINKS Julie Bornstein Jon Callaghan True Ventures Daydream Top e-commerce veteran Julie Bornstein unveils Daydream—an AI-powered shopping agent that's 25 years in the making, Forbes, 6/25/2025 Pinterest to Acquire THE YES, an AI Powered Shopping Platform for Fashion, press release, 6/2/2022 StitchFix SUBSCRIBE

01) Dan O'Adrian - When The Sun Rises (Original Mix) [ Yeiskomp Records ] 02) N-sKing - Ego (Extended Mix) [ Monster Neos ] 03) Alphar - Euphoria (Extended Mix) [ LOST KOMMUNICATION RECORDS Ltd ] 04) Airdream - Behind Your Smile (Extended Mix) [ Reason II Rise Music ] 05) Betibwe - Dreamveil (Original Mix) 06) The Midnight - Los Angeles (Robert Nickson Bootleg Remix) 07) Korzon - I❤️TRANCE 08) Numatra - Solar Storm (Original Mix) 09) CaDeR - Smoke & Mirrors (Extended Mix) [ AROS Music ] 10) Alex Drane - Travelers Of Eternity (Extended Mix) [SUANDA MUSIC]

Keith challenges the usual "overpopulated vs. underpopulated" debate and shows why that's the wrong way to think about demographics—especially if you're a real estate investor. Listeners will hear about surprising global population comparisons that flip common assumptions.  Why raw population numbers don't actually explain housing shortages or rent strength. How household formation, aging, and migration really drive demand for rentals. Which kinds of markets tend to see persistent housing pressure—and why the US has a long‑term demographic edge. You'll come away seeing population headlines very differently, and with a clearer lens for spotting where future housing demand is most likely to show up. Episode Page: GetRichEducation.com/590 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com GRE Free Investment Coaching: GREinvestmentcoach.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  For predictable 10-12% quarterly returns, visit FreedomFamilyInvestments.com/GRE or text  1-937-795-8989 to speak with a freedom coach 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— GREletter.com  Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript: Keith Weinhold  0:01   Keith, welcome to GRE. I'm your host. Keith Weinhold, is the world overpopulated or underpopulated? Also is the United States over or underpopulated? These are not just rhetorical questions, because I'm going to answer them both. Just one of Africa's 54 nations has more births than all of Europe and Russia combined. One US state has seen their population decline for decades. This is all central to housing demand today. On get rich education   Keith Weinhold  0:36   since 2014 the powerful get rich education podcast has created more passive income for people than nearly any other show in the world. This show teaches you how to earn strong returns from passive real estate investing in the best markets without losing your time being a flipper or landlord. Show Host Keith Weinhold writes for both Forbes and Rich Dad advisors, and delivers a new show every week since 2014 there's been millions of listener downloads of 188 world nations. He has a list show guests include top selling personal finance author Robert Kiyosaki. Get rich education can be heard on every podcast platform, plus it has its own dedicated Apple and Android listener phone apps build wealth on the go with the get rich education podcast. Sign up now for the get rich education podcast, or visit get rich education.com   Speaker 1  1:21   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  1:31   Welcome to GRE from Norfolk Virginia to Norfolk, Nebraska and across 188 nations worldwide, you are inside. Get rich education. I am the GRE founder, Best Selling Author, longtime real estate investor. You can see my written work in Forbes and the USA Today, but I'm best known as the host of this incomprehensibly slack John operation that you're listening to right now. My name is Keith Weinhold. You probably know that already, one reason that we're talking about underpopulated versus overpopulated today is that also one of my degrees is in geography and demography, essentially, is human geography, and that's why this topic is in my wheelhouse. It's just a humble bachelor's degree, by the way, if a population is not staying stable or growing, then demand for housing just must atrophy away. That's what people think, but that is not true. That's oversimplified. In some cases. It might even be totally false. You're going to see why. Now, Earth's population is at an all time high of about 8.2 billion people, and it keeps growing, and it's going to continue to keep growing, but the rate of growth is slowing now. Where could all of the people on earth fit? This is just a bit of a ridiculous abstraction in a sense, but I think it helps you visualize things. Just take this scenario, if all the humans were packed together tightly, but in a somewhat realistic way, in a standing room only way, if every person on earth stood shoulder to shoulder, that would allow about 2.7 square feet per person, they would sort of be packed like a subway car. Well, they could fit in a square, about 27 kilometers on one side, about 17 miles on each side of that square. Now, what does that mean in real places that is smaller than New York City, about half the size of Los Angeles County and roughly the footprint of Lake Tahoe? So yes, every human alive today could physically fit inside one midsize us metro area. This alone tells you something important. The world's problem is certainly not a lack of space. Rather, it's where people live and not how many there are. So that was all of Earth's inhabitants. Now, where could all Americans fit us residents using the same shoulder to shoulder assumption, and the US population by mid year this year is supposed to be about 350,000,00349 that's a square about five and a half kilometers, or 3.4 miles on each side. And some real world comparisons there are. That's about half of Manhattan, smaller than San Francisco and roughly the size of Disney World, so every American could fit into a single small city footprint. And if you're beginning to form an early clue that we are not overpopulated globally, yes, that's the sense that you Should be getting.     Keith Weinhold  5:01   now, if you're in Bangladesh, it feels overpopulated there. They've got 175 million people, and that nation is only the size of Iowa. In area, Bangladesh is low lying and typhoon prone. They get a lot of flooding, which complicates their already bad sanitation problems and a dense population like that, and that creates waterborne diseases, and it's really more of an infrastructure problem in a place like Bangladesh than it is a population problem. Then Oppositely, you've got Australia as much land as the 48 contiguous states, yet just 27 million people in Australia, and only 1/400 as many people as Bangladesh in density. Now we talk about differential population. About 80% of Americans live in the eastern half of the US. But yet, the East is not overpopulated because we have sufficient infrastructure, and I've got some more mind blowing population stats for you later, both world and us. Now, as far as is the world overpopulated or underpopulated, which is our central question, depending on who you ask and where they live, you're going to hear completely different answers. Some people are convinced that the planet is bursting at the seams. Others warn that we're headed for a population collapse. But here's the problem, that question overpopulated or underpopulated, it's the wrong question. It's the wrong framing, especially if you're into real estate, because housing demand doesn't respond to total headcount or global averages or scary demographic headlines. Housing demand responds to where people live, how old they are, and how they form households. And once you understand this, a lot of things suddenly begin to make sense, like why housing shortages persist, why rents stay high, even when affordability feels stretched, why some states struggle while others boom, and why population headlines often mislead investors.   Keith Weinhold  7:20   So today I want to reframe how you think about population and connect it directly to housing demand, both globally and right here in the United States. And let's start with the US, because that's probably where you invest.    Keith Weinhold  7:33   Here's a simple fact that should confuse people, but usually doesn't, the United States has below replacement fertility. I'll talk about fertility rates a little later. They're similar to birth rates, meaning that Americans are not having enough children to replace the population naturally and without immigration, the US population would eventually shrink, and yet in the US, we have a housing shortage, rising rents, tight vacancy and a lot of metros and persistent demand for rental housing, which could all seem contradictory. Now, if population alone determine housing demand, well, then the US really shouldn't have any housing shortage at all, but it does so clearly, population alone is not the main driver, and really that contradiction is like your first clue that most demographic conversations are just missing the point. Aging does not reduce housing demand. The way that people think a misconception really is that an aging population automatically reduces housing demand. It does not, in fact, just the opposite. If a population is too young, well, that tends to kill housing demand, and that's because five year old kids and 10 year old kids do not form their own household. Instead, what an aging population often does is change the type of housing that's demanded, like seniors aging in place, some of them downsizing. Seniors living alone. Sometimes after a spouse passes away, others relocating closer to health care or to family. So aging can increase unit demand even if population growth slows. So already, we've broken two myths here. Slower population doesn't mean weaker housing demand, and aging doesn't mean fewer housing units are needed. Now let's explain why. Really, the core idea that unlocks everything is that people don't live inside, what are called Population units. They live in households. You are one person. That does not mean that your dwelling is then one population unit. That's not how that works. You are part of a household, whether that's a house a Household of one person or five or 11 people, housing demand is driven by the number of households, the type of households and where those households are forming, not by raw population totals. So the same population can have wildly different demand. Just think about how five people living together in one home, that's one housing unit, those same five people living separately, that is five housing units, same population, five times the housing demand. And this is why population statistics alone are almost useless for real estate investors, you need to know how people are living, not just how many there are. The biggest surge in housing demand happens when people leave their parents' homes or when they finish school or when they start working, or you got big surges in housing demand when people marry or when they separate or divorce. So in other words, adults create housing demand and children don't. And this is why a country with a youngish, working age population, oh, then they can have exploding housing demand. A country with high birth rates, but low household formation can have overcrowding without profitable housing growth. So it's not about babies, it's about independent adults, and what quietly boosts housing demand, then is housing fragmentation. Yeah, fragmentation. That's a trend that really doesn't get enough attention, and that is the trend, households are fragmenting, meaning more single adults later marriage, like I was talking about in a previous episode. Recently, higher divorce rates, more people living alone and older adults living independently, longer. Each one of those trends increases housing demand without adding any population whatsoever. When two people split up, they often need two housing units instead of one, and if you've got one adult living alone, that is full unit demand right there. So that's why housing demand can rise even when population growth slows or stalls for housing demand. What matters more than births is migration. And another key distinction is that, yes, births matter, but they're on somewhat of this 20 year delay and migration matters immediately, right now. So see, when a working age adult moves, they need housing right away. They typically rent first. They cluster near jobs, and they don't bring housing supply along with them. They've got to get it from someone else. Hopefully you in your rental unit.    Keith Weinhold  12:57   This is why migration is such a powerful force in rental markets, and you see me talk about migration on the show, and you see me send you migration maps in our newsletter. It's also why housing pressure shows up unevenly. It gets concentrated around opportunity. If you want to know the future, look at renters. Renters are the leading indicator, not homeowners and not birth rates. See renters create housing demand faster than homeowners, because renters form households earlier. They can do it quickly because they don't need down payments. Renters move more frequently and immigration overwhelmingly starts in rentals, fresh immigrants rarely become homeowners, so even when mortgage rates rise or home purchases slow or affordability headlines get scary, rental demand can stay strong. It's not a mystery, it's demographics. So births surely matter, but only over the long term. It's like how I've shared with you in a previous episode that the US had a lot of births between 1990 and 2010 those two decades, a surge of births more than 4 million every single one of those years during those two decades, with that peak birth year at 2007 but see a bunch of babies being born in 2007 Well, that didn't make housing demand surge, since infants don't buy homes. But if you add, say, 20 years to 2007 when those people start renting, oh, well, that rental demand peaks in 2027 or maybe a little after that, and since the first time, homebuyer age is now 40. If that stays constant, well, then native born homebuyer demand won't peak until 2047 so when it comes to housing demand, the important thing to remember is migration has an immediate effect and births have a delayed effect.    Keith Weinhold  15:02   and I'm going to talk more about other nations shortly, but the US has two major migration forces working simultaneously, domestic and international migration. I mean, Americans move a lot, although not as much as they used to, and people move for jobs, for taxes, for weather, for cost of living and for lifestyle. So this creates state level winners and losers, and Metro level housing pressure and rent growth in those destination markets and national population averages totally hide this. So that's domestic migration. And then on the international migration. The US has a long history, hundreds of years now on, just continually attracting working age adults from around the world. This matters immensely, because they arrive ready to work, and they form households quickly. They overwhelmingly rent first. They concentrate in metros, and this props up rental demand before it ever shows up in home prices. And this is why investors often feel the rent pressure first those rising rents.    Keith Weinhold  16:17   I've got more straight ahead, including Nigeria versus Europe, and what about the overpopulation straining the environment? If you like, episodes that explain why housing behaves the way it does, rather than just reacting to the headlines. You'll want to be on my free weekly newsletter. I break down demographics, housing, demand, inflation, investor trends and real estate strategy in plain English, often complemented with maps. You can join free at greletter.com that's gre letter.com   Keith Weinhold  16:53   mid south homebuyers with over two decades as the nation's highest rated turnkey provider, their empathetic property managers use your return on investment as their North Star. It's no wonder smart investors line up to get their completely renovated income properties like it's the newest iPhone headquartered in Memphis, with their globally attractive cash flows, mid south has an A plus rating with the Better Business Bureau and 4000 houses renovated. There is zero markup on maintenance. Let that sink in, and they average a 98.9% occupancy rate with an industry leading three and a half year average renter term. Every home they offer you will have brand new components, a bumper to bumper, one year warranty, new 30 year roofs. And wait for it, a high quality renter in an astounding price range, 100 to 150k GET TO KNOW mid south enjoy cash flow from day one at mid southhomebuyers.com that's midsouthhomebuyers.com   Keith Weinhold  17:54   you know, most people think they're playing it safe with their liquid money, but they're actually losing savings accounts and bonds don't keep up when true inflation eats six or 7% of your wealth. Every single year, I invest my liquidity with FFI freedom family investments in their flagship program. Why fixed 10 to 12% returns have been predictable and paid quarterly. There's real world security backed by needs based real estate like affordable housing, Senior Living and health care. Ask about the freedom flagship program when you speak to a freedom coach there, and that's just one part of their family of products, they've got workshops, webinars and seminars designed to educate you before you invest. Start with as little as 25k and finally, get your money working as hard as you do. Get started at Freedom, family investments.com/gre, or send a text. Now it's 1-937-795-8989Yep. Text their freedom coach directly again. 1937795, 1-937-795-8989,   Keith Weinhold  19:05   the same place where I get my own mortgage loans is where you can get yours. Ridge lending group and MLS, 42056, they provided our listeners with more loans than anyone because they specialize in income properties. They help you build a long term plan for growing your real estate empire with leverage. Start your prequel and even chat with President chailey Ridge personally while it's on your mind, start at Ridge lending group.com that's Ridge lending group.com   Chris Martenson  19:37   this is peak prosperity. Is Chris Martinson. Listen to get rich education with Keith Weinhold, and don't quit your Daydream.   Keith Weinhold  19:53   Welcome back to get rich Education. I'm your host, Keith Weinhold, and this is episode 590 yes, we're in my Geography wheelhouse today, as I'm talking human geography and demographics with how it relates to housing, while answering our central question today is the world and the US overpopulated or underpopulated? And now that we understand some mechanics here, let's go global. Here's one of the most mind bending stats in all of demographics. Are you ready for this? When you hear this, it's going to have you hitting up chat, GPT, looking it up. It's going to be so astonishing. So jaw dropping. Every year, Nigeria has more births than all of Europe plus all of Russia combined. Would you talk about Willis?   Keith Weinhold  20:47   Yeah, yes, you heard that, right? Willis, that's what I'm talking about. Willis. The source of that data is, in fact, from the United Nations. Yes, Nigeria has seven and a half million births every year. Compare that to all of Europe plus Russia combined, they only have about 6.3 million births per year. So you're telling me that today, just one West African nation, and there are 54 nations in Africa. Just one West African nation produces more babies than the entire continent of Europe, with all of its nations plus all of Russia, the largest world nation by area. Yes, that is correct. One country in Africa produces more babies every year than France, Germany, Italy, Spain, the UK, all of Europe, including all the Eastern European nations, and all of Russia combined. This is a demographic reality, and now you probably already know that less developed nations, like Nigeria have higher birth rates than wealthier, more developed ones like France or Switzerland. I mean, that's almost common knowledge, but something that people think about less is that poorer nations also have a larger household size, which sort of makes sense when you think about it. In fact, Nigeria has five persons per household. Spain has two and a half, and the US also has that same level two and a half. That one difference alone explains why population growth and housing demand are completely different stories now, the US had 3.3 people per household in 1950 and it's down to that two and a half today. That means that even if the population stayed the same, the housing demand would rise. And this is evidence of what I talked about before the break, that households are fragmenting within the US. You can probably guess which state has the largest household size due to their Mormon population. It's Utah at 3.1 the smallest is Maine at 2.3 they have an older population. In fact, Maine has America's oldest population. And as you can infer with what you've learned now, the fact that they have just 2.3 people per household means that if their populations were the same. Maine would need more housing units than Utah. By the way, if you're listening closely at times, I have referred to the United States as simply America. Yes, I am American. You are going to run into some people out there that don't like it. When US residents call themselves Americans, they say something like, Hey, you need a geography lesson. America runs from Nunavut all the way down to Argentina. Here's what to tell them. No, look, there are about 200 world nations. There is only one that has the word America in it, that is the United States of America that usually makes them lighten up. That is why I am an American, not a Peruvian or Bolivian, and there's no xenophobic connotation whatsoever. There are more productive things to think about moving on. Why births matter is because births today become future workers, renters, consumers and even migrants. But not evenly. Young populations move toward a few things. They're attracted to capital. They move towards stability. They're attracted to opportunity, and young populations move toward infrastructure. That's not ideology, that's the gravity and the US remains one of the strongest gravity wells on Earth, a big magnet, a big attractant. Now it's sort of interesting. I know a few a People that believe that the world is indeed overpopulated, they often tend to be environmental enthusiasts, and the environment is a concern, for sure, but how big of a concern is it? That's the debatable part. And you know, it's funny, I've run into the same people that think that the world is overpopulated, they seem to lament at school closures. You see more school closures because just there weren't as many children that were born after the global financial crisis. And these people that are afraid we have an overpopulation problem call school closures a sad phenomenon. They think it's sad. Well, if you want a shrinking population, then you're going to see a lot more than just schools close so many with environmental concerns, though. The thing is, is that they seem to discount the fact that humans innovate. More than 200 years ago, Thomas Malthus, he famously failed. He wrote a book, thinking that the global population would exceed what he called his carrying capacity, meaning that we wouldn't be able to feed everybody. He posited that, look, this is a problem. Populations grow exponentially, but food production only grows linearly. But he was wrong, because, due to agricultural innovation, we have got too many calories in most places. Few people thought this many humans could live in the United States, Sonoran and Mojave deserts, that's Phoenix in Las Vegas, respectively. But our ability to recycle and purify water allows millions of people to live there. So my point about running out of resources is that history shows us that humans are a resource ourselves, and we keep finding ways to innovate, or keep finding ways to actually not need that rare earth element or whatever it is now, if the earth warms too much from human related activity, can we cool it off again? And how much of a problem is this? I am not sure, and that goes beyond the scope of our show. But the broader point here is that history shows us that humans keep figuring things out, and that is somewhat of an answer to those questions. The world is not overpopulated, it is unevenly populated. Some regions are young, others are growing, others are capital constrained, and then other regions are aging, shrinking and capital rich. And that very imbalance right there is what fuels migration and fuels labor flows and fuels housing demand in destination countries and the US benefits from this imbalance. Unlike almost anywhere else in the world, it's a demographic magnet. Yes, you do have some smaller ones out there, like Dubai, for example.    Keith Weinhold  28:04   But why? Why do we keep attracting immigrants? Well, we've got strong labor markets, capital availability, property rights, economic mobility, and US has existing housing stock. Countries today don't just compete for capital, they're competing for people. In the US keeps attracting working age adults, and that is exactly the demographic that creates housing demand, and this is why long term housing demand in the US is more resilient than a lot of people think. In fact, the US population of about 350 million. This year, it's projected to peak at about 370 million, near 2080 and of course, the big factor that makes that pivot is that level of immigration. So that's why the population projections vary now. The last presidential administration allowed for a lot of immigrants. The current one few immigrants, and the next one, nobody knows. You've got a group called the falconist party that calls for increased legal immigration into the US. Yeah, they want to allow more migrants into the country, but yet they want to enforce illegal immigration. That sounds just like it's spelled, F, A, L, C, O, N, i, s, t, the falconist Party, but the us's magnetic effect to keep driving population growth through immigration is key, because you might already know that 2.1 is the magic number you need a fertility rate of at least 2.1 to maintain a population fertility rate that is the average number of children that a woman is expected to have over her lifetime. And be sure you don't confuse these numbers with the earlier numbers of people per. Per household, like I discussed earlier, although higher fertility rates are usually going to lead to more people per household, India's fertility rate is already down to 2.0 Yes, it is the most populated nation in the world, but since women, on average, only have two children, India is already below replacement fertility. The US and Australia are each at 1.6 Japan is just 1.2 China's is down to 1.0 South Korea's is at an incredibly low seven tenths of one, so 0.7 in South Korea, and then Nigeria's is still more than four. So among all those that I mentioned, only Nigeria is above the replacement rate of 2.1 and most of the nations above that rate are in Africa. Israel is a big outlier at 2.9 you've got others in the Middle East and South Asia that are above replacement rate as well. And when I say things like it's still up there, that whole still thing refers to the fact that there is this tendency worldwide for society to urbanize and have fewer children. For those fertility rates to keep falling. And that's why the future population growth is about which nations attract immigrants, and that is the US. Is huge advantage. Now there's a great way to look at where future births are going to come from. A way to do this is consider your chance of being born on each continent in the year 2100 This is interesting. In the year 2100 a person has a 48% chance of being born in Africa, 38% in South Asia, in the Middle East, 5% South America, 5% in Europe or Russia, 4% in North America, and less than 1% in Australia. Those are the chances of you being born on each of those continents in the year 2100 and that sourced by the UN.   Keith Weinhold  32:09   the world population is, as I said earlier, about 8.2 billion, and it's actually expected to peak around the same time that the US population is in the 2080s and that'll be near 10 point 3 billion. All right, so both the world and the US population should rise for another 50 to 60 years. Let's talk about population winners and losers inside the US. I mean, this is where population conversations really become useful for investors, because population doesn't matter nationally that much. It really matters locally, unevenly and sometimes it almost feels unfairly. So let me give you some perspective shifting stats. I think I shared with you when I discussed new New York City Mayor Zoran Manami here on the show a month or two ago, that the New York City Metro Area has over 20 million people, nearly double the combined population of Arizona and Nevada together, yes, just one metro area, the same as Two entire sparsely populated states. So when someone says people are leaving New York I mean that tells you almost nothing, unless you know where they're going. How many are still arriving in New York City to replace those leaving, and how many households are still forming inside that Metro? The household formation so scale matters, however, net, people are not leaving New York. New York City recently had more in migration than any other US Metro. Some states are practically empty. Alaska or take Wyoming. Wyoming has fewer than 600,000 people in the entire state. That's fewer people than a lot of single US cities. That's only about six people per square mile. In Wyoming, that's about the population of one midsize Metro suburb. Now, when someone says the US has plenty of land in a lot of cases, they're right. I mean, just look out the window when you fly over Wyoming or the Dakotas. But people don't really live where land is cheap. They actually don't want to. Most of the time. They live where jobs, incomes and their networks already exist. You know, the wealthy guy that retires to Wyoming and it has a 200 acre ranch is an outlier. There's a reason he can sprawl out and make it 200 acres. There's virtually nobody there. Let's understand too that population loss, that doesn't mean that demand is gone, but it does change the rules, especially when you think about a place like West Virginia. They have lost population in most decades since the 1950s and incredibly, their population is lower today than it was in 1930 we're talking about West Virginia statewide. They have an aging population. West Virginia has an outmigration of young adults. So this doesn't mean that no real estate works in West Virginia, but it means that appreciation stories are fragile. Income matters more than equity. Growth and demographics are a headwind, not a tailwind. That's a very different investment posture than where you usually want to be. It's important to understand that a handful of metros, just a handful, are absorbing massive national growth. And here's something that a lot of investors underestimate. About half of all US, population growth flows into fewer than 15 metro areas, and it's not just New York City, Houston, Miami, but smaller places like Jacksonville, Austin and Raleigh, and that really helps pump their real estate market. So that means demand concentrates, housing pressure intensifies, and rent growth becomes pretty sticky, unless you wildly overbuild for a short period of time like Austin did, and this is why some metros just feel perpetually tight over the long term, and others feel permanently sluggish. Population does not spread evenly. It piles up. In fact, Texas is a great case in point here. Understand that Texas is adding people faster than some entire nations do. Texas alone adds hundreds of 1000s of residents per year in strong cycles. Some years, they do add more people than entire small countries, more than several Midwest states combined. And of course, they don't spread evenly across Texas. They cluster in DFW, Houston, Austin and San Antonio, so pretty much the Texas triangle, and that clustering fact is everything for housing demand, yet at the same time, there are fully 75 Texas counties that are losing population, typically out in West Texas. Then there's Florida. Florida isn't just growing. It's replacing people. Florida's growth. It's not just net positive, it's replacement migration, and it's across all different types and ages. You've got retirees arriving, you've got young workers arriving, you've got young households forming, and you've got seniors aging in place. So this way, among a whole spectrum of ages, you've got demand for rentals, workforce housing, age specific, housing and multifamily all in Florida, and this is why Florida housing demand over the long term is not going to cool off the way that a few skeptics expect. Now, of course, some areas did temporarily overbuild in Florida in the years following the pandemic. Yes, that's led to some temporary Florida home price attrition, but that is going to be absorbed. California did not empty out. It reshuffled now. There were some recent years where California lost net population, but here's what that hides. Some metros lost residents. Others stayed flat. You had some income brackets that left California and others arrived. In fact, California has slight population growth today overall, so housing demand definitely did not vanish. It shifted within the state and then outward to nearby states, and that's how Arizona, Nevada and Texas benefited. But overall, California's population count, really, it's just pretty steady, not declining.   Keith Weinhold  39:05   population density. It's that density that predicts rent pressure better than growth rates. Do something really important for real estate investors. Dense metros absorb shocks better. They have less elastic housing supply, and they see faster rent rebounds. Sparse areas have cheaper land and easier supply expansion and weaker rent resilience. So that's why rents snap back faster in dense metros, and oversupply hurts more in spread out to regions. Density matters more than raw growth does. Shrinking states can still have tight housing I mean, some states lose population overall, but yet they still have housing shortages in certain metros, and you'll have tight rental markets near job centers, and you've got strong demand In limited sub markets, even if the state is shrinking. And I think you know this is why the slower growing Northeast and Midwest, they've had the highest home price appreciation in the past two years. There's not enough building there. If your population falls 1% but the available housing falls 2% well, you can totally get into a housing shortage situation, and that bids up real estate prices. And when people look at population charts on the state level, a lot of times, they still get misled. When you buy an investment property, you don't buy a state, you buy a specific market within it, so the United States is not full it is lopsided. The US is not overpopulated. It is heavily clustered. It's unevenly dense, and it's really driven by migration. And perhaps a better way to say it is that the US population is really opportunity concentrated housing demand follows jobs, networks, wages and migration flows. It sure does not follow empty land. And really the investor takeaway is, is that when you hear population stats, don't put too much weight on the question, is the population rising or falling? Although that's something you certainly want to know. Some better questions to ask are, where are households forming? Where are adults moving? Where is supply constrained? And where does income support, rent like those are, what four big questions there, because population alone does not create housing demand. It's households under constraint that do so. Our big arching overall question is the world overpopulated or underpopulated? The answer is neither. The world is unevenly populated. It's unevenly aged, and it's unevenly governed. And for real estate investors, the lesson is simple. You don't invest in population counts, you invest in household formation, age structure, migration and supply constraints. Really, that's a big learning summary for you, that's why housing demand can stay strong even when population growth slows. And once you understand that demographic headlines that seem scary aren't as scary, and they start to be more useful. Why I've wanted to do this overpopulated versus underpopulated episode for you for years. I've really thought about it for years. I really hope that you got something useful out of it. Let's be mindful of the context too. When it comes to the classic Adam Smith economics of supply demand, I've only discussed one side today, largely just the demand side and not the supply side so much that would involve a discussion about building and some more things that supply side. Now that I've helped you ask a better question about population and the future of housing demand, you might wonder where you can get better answers. Well, like I mentioned earlier, I provide a lot of that and help you make sense of it, both right here on this show and with my newsletter, geography is something that's more conducive and meaningful to you visually, that's often done with a map, and that's why my letter at greletter.com will help you more if you enjoy learning through maps, just like we've done every year since 2014 I've got 52 great episodes coming to you this year. If you haven't consider subscribing to the show until next week, I'm your host. Keith Weinhold, don't quit your Daydream.   Speaker 2  43:57   Nothing on this show should be considered specific, personal or professional advice, please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of get rich Education LLC, exclusively you   Keith Weinhold  44:25   The preceding program was brought to you by your home for wealth, building, get richeducation.com

Whats good my lil yappers ✨We're officially in Aquarius season, and the energy is... GEWD. In this episode, I spiral through Pluto transits, Cap guilt, Scorpio shame, Piscean daydreams, and my ongoing obsession with a new fantasy book series: An Ember in the Ashes. I also get personal about Iran, my roots, and the emotional weight of watching your home country from afar.We unpack Moon energy vs Sun energy, the astro pairing you need as advisors, and a fun Persian Empire fact because I like to keep you cultured and chaotic. Love yall so much. xx sara

This week I'm joined by comedian/podcaster/director Scott Aukerman (Comedy Bang Bang, Between Two Ferns, R U Talkin' R.E.M. RE: ME? w/ Adam Scott) as we delve into the recent David Bowie documentary, Moonage Daydream.We also discuss Scott's parents searching his teenage room for dangerous music, Frankie Goes To Hollywood and Prince, Scott's divisive (but beloved) U2 and R.E.M. podcasts with Adam Scott (Parks And Recreation; Severance), when we've felt like an artist has spat in our face, Dick Cavett, R.E.M.'s Dead Letter Office, The Dead Milkmen, meeting Bono, how we both first got obsessed with Bowie, getting scammed by compilations and bootlegs, the interview style of David Bowie, chaos in Scott's work, watching Bowie on endless escalators, The Sparks Brothers doc, the jaw-dropping performance of "Cracked Actor" in this film, seeing Bowie live, Nine Inch Nails, Bowie's feelings on the Let's Dance era of his life, The Glass Spider tour, Bowie's final album Blackstar, the occasional difficulties in continuing to follow an artist when they want to change artistically and more!So let's watch in awe as David drinks milk in the back of a Rolls-Royce on this week's episode of Revolutions Per MovieSCOTT AUKERMAN:comedybangbangworld.comBETWEEN TWO FERNS:youtube.com/watch?v=UnW3xkHxIEQREVOLUTIONS PER MOVIE:Host Chris Slusarenko (Eyelids, Guided By Voices, owner of Clinton Street Video rental store) is joined by actors, musicians, comedians, writers & directors who each week pick out their favorite music documentary, musical, music-themed fiction film or music videos to discuss. Fun, weird, and insightful, Revolutions Per Movie is your deep dive into our life-long obsessions where music and film collide.Revolutions Per Movie releases new episodes every Thursday on any podcast app, and additional, exclusive bonus episodes every Sunday on our Patreon. If you like the show, please consider subscribing, rating, and reviewing it on your favorite podcast app. Thanks!PATREON:The show is also a completely independent affair, so the best way to support it is through our Patreon at patreon.com/revolutionspermovie. By joining, you can get weekly bonus episodes, physical goods such as Flexidiscs, and other exclusive goods. It helps the show to keep going and is greatly appreciated!TIP JAR:ko-fi.com/revolutionspermovieSOCIALS:@revolutionspermovieBlueSky: @revpermovieTHEME by Eyelids 'My Caved In Mind'www.musicofeyelids.bandcamp.com ARTWORK by Jeff T. Owenshttps://linktr.ee/mymetalhand Hosted on Acast. See acast.com/privacy for more information.

01) TrancEye - Time Travel (Extended Mix) [ Audiopassion ] 02) Tony Syntex - Of The Universe (Original Mix) [ RECORDS GROUP ] 03) LTN - Exodus 3.14 (Extended Mix) [ AVA Recordings ] 04) MakeFlame - When I Lost You (Extended Mix) [ Reason II Rise: UPLIFT ] 05) Moniqa Adams & Arsen. - Daydream (Extended Mix) [ Reason II Rise: REALMS ] 06) DJ Eternity - Stardust (Extended Mix) [ Clone 2.1 Records ] 07) Cloudhunter - Meteora (Extended Mix) [ Redux Recordings ] 08) BrianFerdinandus - Toli Toli (Original Mix) [ Prime EDM Records ] 09) Bryn Whiting - Finding My Way (Extended Mix) [ Reason II Rise Music ] 10) REX.W - Morpho Menelaus (Extended Mix) [ Eternal Starlight Recordings ]

Recorded live from NRF Retail's Big Show in New York and produced in partnership with Kyndryl, we bring together senior retail and technology leaders to explore how AI is reshaping the modern retail enterprise. Featuring insights from: 1/ Rachel Calhoun, Global VP - Retail, Consumer & Airlines, Kyndryl 2/ Jayson Tipp, Chief Development Officer, Playa Bowls 3/ Ashley Kechter, Global President, Vuori 4/ Matt Ezyk, Head of Ecommerce Technology, Hanna Andersson 5/ Julie Bornstein, Founder and CEO, Daydream 6/ Naresh Krisnamurthy, Senior Manager, Business Transformation, KAO UK The discussion spans agentic AI, legacy system transformation, omnichannel growth, AI-ready infrastructure, peak trading execution and the realities of scaling retail technology. This episode provides a practical, executive-level look at how retailers are moving beyond pilots to deliver real business outcomes with AI.

L'instant ludique: Daydream

Keith Weinhold breaks down how recent presidential housing policies could influence real estate investors and everyday homebuyers.  Then he walks through four different ways to eventually exit your investment properties—including a little-known strategy most investors have never heard of—so you can start thinking about how you'll one day harvest your gains, potentially with minimal or no taxes, while still preserving your wealth and flexibility. Episode Page: GetRichEducation.com/589 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com GRE Free Investment Coaching: GREinvestmentcoach.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  For predictable 10-12% quarterly returns, visit FreedomFamilyInvestments.com/GRE or text  1-937-795-8989 to speak with a freedom coach 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— GREletter.com or text 'GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript:   Keith Weinhold  0:01   Keith, welcome to GRE. I'm your host. Keith Weinhold, the presidential administration has made some weighty decisions that could affect the real estate market for years. Then when it's time for you to sell your investment property, there are some smart ways to do it and some big mistakes to avoid. We're talking about four options for your real estate exit strategy, including the little discussed 721 exchange today on get rich education.   Keith Weinhold  0:32   Since 2014 the powerful get rich education podcast has created more passive income for people than nearly any other show in the world. This show teaches you how to earn strong returns from passive real estate investing in the best markets without losing your time being a flipper or landlord. Show Host Keith Weinhold writes for both Forbes and Rich Dad advisors and delivers a new show every week since 2014 there's been millions of listener downloads of 188 world nations. He has a list show guests and key top selling personal finance author Robert Kiyosaki, get rich education can be heard on every podcast platform, plus it has its own dedicated Apple and Android listener phone apps build wealth on the go with the get rich education podcast. Sign up now for the get rich education podcast, or visit get rich education.com   Russell Gray  1:18   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  1:28   Welcome to GRE you're inside one of America's longest running and most listened to shows on real estate investing. This is Get Rich Education. I'm your host. Keith Weinhold, if you're working for the weekend, then you had better examine your Monday to Friday and start investing for leverage in income that's generated today. The good news is that down the road, when it comes time for you to sell your investment property, hopefully, after decades of handsome profits, even if that is years away, there are a lot of good options for you, including multiple ones that are tax deferred and effectively tax free. I'll discuss that later today, what we know, and what history has proven, is that savers lose wealth, stock investors maintain wealth, real estate investors build wealth. And I contend that within the discipline of real estate, being the investor is the best job of all of them, because, look, realtors rarely build wealth. Property managers that don't actually own the real estate, they also rarely build wealth. And the people on your maintenance team, they don't build wealth either. Now, as much as we might appreciate all these service professionals, I mean, I sure do this is not meant to disparage them. I'm trying to help you pick the right lane in real estate. Know that you're doing the right thing. Do the right thing before you do things right. By their own admission, the National Association of Realtors, the NAR they will tell you that the median gross income for a realtor is. Do you want to guess? Any guess as to what the median gross income for a realtor is? It is $58,100. that's it.    Keith Weinhold  3:37   And realize that's the figure being reported by the trade organization that represents the industry too licensed sales agents. Median income that's even lower. It is $41,700 also per the NAR I see myself realtors that have been in business 20 years, 30 years, 40 years, and all that time, they have never bought a single investment property for themselves. Instead, a lot of them spend their entire career helping other people get rich while they never get on the treadmill. But do you know what is even crazier to me, crazier than that, it's the number of people that manage properties, including some of my own property managers that I hire, and they don't own any investment real estate themselves. And I think that's crazy, because managers are doing what is one of the toughest jobs in real estate, always having to walk that tightrope, arbitrating between the property owner and the tenant, and as a result, often pleasing nobody. They're sort of like the football referee, the baseball umpire, the property manager they have to deal with The problem tenant. The manager has to bug the tenant to collect the late rent, and then your maintenance people. You know, I just met up with a contractor that's putting new flooring in one of my rentals. He's got a sense of humor, and he wore this great t shirt that says, I'm here because you broke it. I love that. But now his compensation isn't too shabby, but he's trading his time for dollars, and the income stops when his work stops. The lesson is, be the asset owner.    Keith Weinhold  5:35   Now this presidential administration has shaken up a lot of policies, good or bad we've got a bunch of new directives centered on the housing market. And really, this shouldn't come as any sort of surprise, since be mindful, the current White House occupant is a long time New York City Real Estate Investor, some of the more recent weighty moves that can affect you are banning institutional investors from buying single family homes that they turn into rentals, and the other one is a $200 billion bond purchase program aimed at reducing mortgage rates. Okay, whether those two things happen or not, it's good to look at their effect, how they move a real estate market, because when you understand the effects, then you learn a lesson, even if you're listening to this episode 10 years from now, the move to ban institutional investors. We're talking about conglomerate groups like Blackstone and invitation homes. The move to ban them from buying single family rentals is to try to reduce the demand and therefore, hopefully lower the price of single family homes in order to help affordability. Okay, that could work in concept. But here's the other thing that it does, there would be fewer rentals available on the market, because most institutional investors do buy those build to rent properties, that's what they're looking to acquire. So it's sort of what most any real estate investor would want. They would get higher rents and maybe some somewhat lower purchase prices, or at least a lower appreciation rate. But this whole move to ban institutional investors, that is mostly a nothing burger, that's all we're talking about here. And here's why you cannot undo the institutional purchases that were already made, and a lot of those got made, a lot of them during the pandemic. So it would only be banning new purchases. And another important point to consider here is how small this market is. I think these institutional buyers make a whole lot of outsized noise and often get pointed to as the boogeyman for running up prices of real estate. But that's not true. Only about two to 3% of single family rentals are owned by these giant investors, at least the ones that have over 1000 units. Okay, so this all sounds good as a political platitude. You trying to do something about it? I sort of understand that, but this ban, it just would not move the market very much at all now, perhaps a slight move could be triggered in cities that do have a lot of institutional ownership, like Atlanta, Jacksonville, Charlotte, but really little effect. The second directive from the President is having Fannie Mae and Freddie Mac buy $200 billion worth of mortgage bonds. This is really an effort to drive down mortgage rates and bring down monthly payments and make the cost of home ownership more affordable. The translation here for you is that whenever you inject money into something, money tends to flow more freely and rates get lower, kind of lowering the dam wall height, like I have given to you in other examples, when you buy bonds that demand pushes up bond prices, which lowers bond yields. And mortgage rates are tied to those lowered bond yields. And as soon as this was announced, like the very next day, mortgage rates fell into the high fives, yes, under 6% for the first time in three years. But the last thing effect of this that's been studied, and it's been shown to reduce mortgage rates by about three tenths of 1% so not nothing, but sort of small. However, if they're buying down rates like this one time, well then they might do it multiple times. So there you go. There are two recent directives from the president banning institutional investors from buying single family homes and buying mortgage bonds to lower mortgage rates.    Keith Weinhold  10:00   Either one of them with seismic effects. It's sort of like the 50 year mortgage proposal that the administration made a while ago, and that's probably not going to become a reality anytime soon, if ever. Here's a question that I have for you, and I'll let you answer. Do you like free markets, or would you rather have big government? Well, each of these directives are more government intervention into the free market, whether you like that or not. Another way to say it is that stuff like this makes a lot of splashy headlines, but it's not a bigger deal than a Philadelphia Eagles football game,at least. You know how these forces can move markets now    Keith Weinhold  10:46   straight ahead, it's the concise, definitive audio guide to selling your investment property. I'm going to detail four different ways that you can do it in this guide, including tax deferred and effectively, tax free methods. When you're able to defer taxes over and over again throughout your entire life, they effectively become tax free. You never have any tax obligation. Also, I will discuss one way of selling your property that you're probably not familiar with and you might have never heard about before in your life. I'm Keith Weinhold. You're listening to Episode 589 of get rich education.    Keith Weinhold  11:27   You know, most people think they're playing it safe with their liquid money, but they're actually losing savings accounts and bonds don't keep up when true inflation eats six or 7% of your wealth every single year, I invest my liquidity with FFI freedom family investments in their flagship program. Why fixed 10 to 12% returns have been predictable and paid quarterly. There's real world security backed by needs based real estate like affordable housing, Senior Living and health care. Ask about the freedom flagship program when you speak to a freedom coach there, and that's just one part of their family of products, they've got workshops, webinars and seminars designed to educate you before you invest. Start with as little as 25k and finally, get your money working as hard as you do. Get started at Freedom family investments.com/gre. Or or send a text now it's 1-937-795-8989, yep, text their freedom coach, directly. Again. 1-937-795-8989,   Keith Weinhold  12:39   the same place where I get my own mortgage loans is where you can get yours. Ridge lending group and MLS, 42056, they provided our listeners with more loans than anyone because they specialize in income properties. They help you build a long term plan for growing your real estate empire with leverage, start your pre qual and even chat with President chailey Ridge personally, while it's on your mind, start at Ridge lending group.com that's Ridge lending group.com   Russell Gray  13:12   Hi. This is Russell Gray, Main Street capitalist. You're listening to the get rich education show with Keith weinholden. Remember, don't quit your Daydream.    Keith Weinhold  13:20   You welcome back to get rich Education. I'm your host, Keith Weinhold, and I'm coming to you from Colorado Springs today, where I'm attending the real estate guys create your future goals retreat event, yeah, a goals event allows one to get introspective. One part of it is learning how I can serve you better on this show. Every week, since I do pour a lot of thought into what I share with you here. How much yeah, just, how much did this event mean to me? Well, my team is in the NFL playoffs, and I was willing to miss some playoff football for this.   Speaker 1  14:07    That's inexcusable, inexcusable. Playoffs. Don't talk about playoffs. You kidding me? Playoffs? I just hope we can win a game.   Keith Weinhold  14:19   Yeah, yeah. That is, that is, of course, the classic rant from a former NFL coach, Jim Mora. Maybe Jim needs to attend the goals retreat to put things into perspective here. now, whether it's just a few years from now or it's decades into your future, at some point we're all going to exit the real estate investing game, even if that's not until the day we die. I'll talk about that with whatever endeavor you're in. It is good to begin with. The end In mind. there's a good chance that you're either in real estate acquisition mode now, or you once were. Or where you're going to be in that real estate acquisition mode in the future, but after this accumulation phase of your life, hopefully, which you've turned into financial freedom through real estate, after that, you're going to be in the mode where, since you've already made it, you're going to want to just maintain the portfolio that you have or stop acquiring or you will want to sell eventually. The good news is that there are a lot of good options for selling your property and doing it, tax deferred and effectively tax free. Now I will not talk about selling your primary residence so much, though, this is focused on exiting from your investment property, primary residence sales rules with the IRS is that your first 250k of gain is exempt from capital gains tax if you're single, and your first 500k is shielded from tax if you're married. Quite a marriage incentive there.    Keith Weinhold  15:59   But as we focus on investment properties. This is influenced by a question from one of our older GRE listeners, 62 year old, Mark, who wrote in last year, was such a good question and I answered his question on air last month. I'll basically expand on that answer today. Mark said he has listened to every GRE episode ever, and therefore, congratulations, he made it. He reached financial freedom, and he's got a sizable portfolio. Some of his properties are paid off. Others are leveraged. But see, Mark is hesitant to buy more property because he's already made it his wife doesn't want more properties because she associates it with him having to do more work. Now, when you're still in pursuit of financial freedom, well, you don't mind investing a small slice of your time each month into real estate, a little light management, remotely, maybe, but once your residual income exceeds all of your expenses, well, then at that point, your time is going to start to become more valuable. So let's look at four here, four solid options for exiting your property, and then I'm going to examine the pros and cons of each one. The first of four is simply to sell real estate in the conventional way, just a plain sale to a buyer, where you see that it gets fixed up and you list it and you sell it outright. Well, the pros of this are is that it gets you to your exit, and it also turns your equity into cash. The cons, the downside of doing it this way is that you're going to give up your ongoing stream of income. Your Cash Flow is going to be gone. You might have to remove tenants, depending on your scenario. You have to fix up and stage the home to prepare it for the market. That could be as little as 5k or as much as 50k or more, depending on the size of your real estate, you're going to have to pay a real estate agent a commission of 3% or more and pay capital gains tax of 15% or more. That's one five. And you'll also have to pay depreciation recapture, and of course, you don't have to pay 15% of the total asset value. It's just 15% of the value gain during the time that you held this property, right? So the tax and fix up cost can eat into your profit with this first of four ways to sell your property, although you are still probably in for a pretty nice windfall upon the sale if you've held it for a while. All right, so the first way is a plain sail, and a lot of people would agree that is not the best way to do it. Okay, it gets far better from here. The second sale option that you have is something that a lot of real estate investors like us are familiar with, or have at least heard of, and the general public has not, and that is the 1031 exchange. You'll also hear it be called the 1031 tax deferred Exchange, or the 1031 like kind exchange, because you trade your property up for another property that's kind of like it. It is a hugely powerful wealth building and wealth preservation tool, okay, section 1031, of the IRS tax code that allows an investor to exit a property without incurring any capital gains taxes. That also does not trigger depreciation recapture when you sell your property, but in order for you to get those tax deferred benefits. Importantly, you have to roll your game into another piece of real estate. Now there are a lot of rules and nuances around 1031 ones. I have done multiple 1030 ones in my life, and they are so worth doing and amplifying your wealth, building power I will not cover all the rules and nuances those things like the three properties rule and the 200% rule, and that rule about how you need to identify your replacement property within 45 days and close on it within 180 days, and all of that. Because what I've done is I've completely broken that down on the show with you here previously, and as always, I explained it in the most clear, incoherent way that I could for you. I best did that on episode 143 of get rich education. The name of that episode is your 1031 exchange guide, tax deferral for life. Now, there do get to be some numbers flying around here, so you want to listen closely, you might find yourself skipping back for simple example purposes, in a 1031assume that you bought a $200,000 duplex 20 years ago, and it's now worth 500k you depreciated the value of the duplex every year, as is actually required by the IRS, assuming you took a total of 100k of depreciation over the life of your ownership of it, and you did not make any improvements to it. The basis of your property is then 100k because it's your 200k purchase price, minus 100k in total depreciation write offs. When you sell the property for 500k you now have a gain of 500k minus 100k which is 400k depreciation, recapture and capital gains are not taxed at the same rate, and it depends on some things, but let's assume that your blended tax rate is 20% that means you would owe 20% on your 400k so that would be 80k in taxes if you just did the plain sale. But not many people want to stroke a check to the IRS for 80k so instead, if you take your 400k of gain and roll it into a new property, or properties, you can defer your obligation to pay this 80k. Yes, you do not owe the IRS a thing. Now this is beautiful. You get that tax break virtually nowhere else in the investing world, okay, so what you've now done is that you have exited the property a duplex, in this case, via 1031 exchange, and you've traded it up for another property. So you're still a real estate investor. You have not exited being one of those, but you sold the duplex and replaced it with another property, or properties, all right, that was the second of four sale options, the 1031, exchange, and, yeah, as you can see, there do get to be some numbers flying around, some deep dive learning for you here. And that's why I lightened it up with the Jim Mora clip before we dove in.   Keith Weinhold  22:54   The third way is called refi for life. Now we could almost put an asterisk on this third way, because with a refi for life, it's not a sale of the property at all. What it is is it's really a way for you to sell your equity to a bank yet still retain the property. Therefore, you access capital without triggering any taxes. You get a nice, big windfall payout while you still hold the asset, and it keeps paying you up to five ways at the same time. Yeah, you will also hear this refi for life strategy referred to as other things. Refi till you die, is one way to put it, as equity accumulates, say, every five or 10 years, you just do another cash out refi, enjoy the tax free windfall and keep holding on to the asset that is the same thing. Other names for this repeated series of cash out refis throughout your life that you might hear, which I'm calling refi for life. Those other names are live on leverage, the equity to income strategy, the infinite hold, the generational hold strategy, hold until step up, or you might hear, buy, borrow, never sell. They all mean the same thing. I'm calling it refi for life. Let me give you a simple refi for life. Example, using conservative assumptions, say that today you put a total of 200k down to control $1 million worth of rental property. Your initial loan balance is 800k we'll just say your cash flow is zero. Your property is appreciated 6% per year. After 10 years, your million dollars of property, growing at 6% annually, is worth almost $1.8 million if you refinance a 75% loan to value your new loan, amount is 1.3 5 million you pay off the original 800k loan, that leaves you with raw. 550k of cash out refinance proceeds. Congratulations, you got a windfall, and your 550k is tax, free loan money to you not income, because the IRS says debt is not income, therefore it's not taxed. Yes, and you heard that right. You can do whatever you want with those funds. What you've now done is you pulled out more than two and a half times your original 200k investment. And yes, while you still own the property, you continue to hold this appreciating asset. Tenants keep paying down your debt over time, and inflation keeps working in your favor, all right, and remember, that's only what you did at the 10 year mark. You are not done. It just keeps getting better. Fast forward five more years to the 15 year mark, at 6% appreciation continuing your original Million Dollar Portfolio is now worth about $2.4 million at 75% loan to value that property supports total debt of roughly $1.8 million at this point, your existing loan balance from the prior refinance, it's still that 1.3 5 million so you pay it off with a new loan. This allows you to extract an additional 450k of tax free cash. So add it up. This means at the 10 year mark, you got 550k and then here, at the 15 year mark, you got another 450k across your two refinances combined, you have now pull out a cool million dollars in tax free loan proceeds. That's nearly $1 million of liquid, usable capital from an original 200k investment that you made 15 years ago, without you ever selling the property. You still own. What's worth now $2.4 million worth of property, you've got the million liquid and you still have not triggered any tax at all. So at this stage, you can just live off your million dollars of refinance proceeds, or you can choose to reinvest it into new assets. Or you can selectively pay down your debt to increase your cash flow, or you can simply hold and let inflation continue shrinking the real value of your loans, and let inflation continue to make your properties go up in price, then down the road when you eventually die, your heirs receive a step up in basis largely eliminating capital gains tax. That is just amazing. That is refi for life in plain English. So that is the third of four exit strategies that I'm sharing with you here today. And understand there are a few caveats here. I only went to the 15 year mark, you can keep doing it every five years. Beyond that, it just keeps getting better as leverage compounds the value of what you own. Now I kept it simple for learning purposes in an audio format with you here, you're probably going to have even more equity than those numbers I gave you because I didn't even include the principal pay down that your tenants make for you.    Keith Weinhold  28:26   And let's discuss a few more pros and cons of this refi for life plan. The pros are that you've borrowed, and you've done that with perhaps a home equity line of credit, home equity loan or a second mortgage, you borrowed against the property in perpetuity and get tax free cash. Interest paid on the amount borrowed is tax deductible too. If you don't have enough tax advantages, there's also that you've got zero property sale, transaction friction or risk, you pass along the value of your home or portfolio to heirs on a stepped up basis. What that means, in essence, is when you pass away your depreciation recapture and your capital gains are wiped out, that's what a stepped up basis means. Okay, those were the pros, the cons, the downsides of doing this, and there aren't very many, but it's that it does not get you out of property ownership while you're still alive. If that's what you're looking for, your property cash flow gets reduced when you do a refi because you have a new debt service obligation. However, you've also got incremental rent increases throughout time that could offset that. And the other thing is, think about your heirs. Sometimes heirs find it challenging to divide homes among themselves, so your heirs need to be pretty well educated on related real estate and tax principles. So those are the cons of refi for Life. We're talking about four distinct access strategies for your investment real estate today on get rich education podcast episode 589 I'm your host, Keith Weinhold    Keith Weinhold  30:09   and the fourth way, the least understood and least utilized way, is known as the 721 exchange. And I want to thank a different GRE listener named Nate in California in his acquire to retire blog. It's worth checking out. I want to thank Nate for his contribution here. Nate heard the GRE episode last year about 62 year old. Listener Mark's desire to sell, and that's what got Nate to write in about the 721 exchange, yes, just like the 1031 exchange is named for that particular section of the IRS tax code, it's just the same with the 721 and of all four methods we're discussing today, it's the only one of the four that I have not done myself. So I have studied it how the 721 exchange works is that say you have a case where you're a rental property owner and you realize that you just don't want the hassles of landlording, but you like the financial benefit that the ownership gives you. What you can do is sell your home to a partnership and receive shares in that partnership. The 721 exchange rules stipulate that this is not a taxable event, and therefore no capital gains tax or depreciation recapture are due. Now that you're an owner in the partnership, you still get the benefits of owning the property, like appreciation and cash flow and such, and you get these benefits across a greater number of properties in markets diversification, because you are a fractional owner in the other properties that are in the partnership, not only your own. And when you eventually pass away, your shares are stepped up in basis and can be distributed equally to heirs. And see it is surely easier to divide shares among, say, four children than it is to divide your 31 rental houses among four children, because your four children are all going to have different goals and varying degrees of financial savvy. So the 721 exchange really is a great estate planning tool as well. So you will have this partnership that makes an offer to buy your property. Section 721, of the IRS Code allows a property owner to contribute real estate to a partnership in exchange for partnership units. And of course, you are going to need to learn how to vet the partnership. Now let's look at some of the pros and cons of this. The upside the pros are that it gets you out of being a direct property owner, if that's just something down the road that you don't want to do anymore. No more repair requests or HOAs, property tax bills, insurance bills, vacancies or property improvements. And of course, the hedge against that, I favor using a property manager to take care of that for me, but that is a different topic. But in any case, you also defer paying capital gains tax and depreciation recapture by rolling your equity into a qualified real estate fund. Some more upsides of the 721 are that you get shares in the real estate fund that offers you continued cash flow and possible appreciation. There's often no need for you to pay to fix up or stage the property for sale, no agent commissions to pay. You diversify your risk across multiple markets and properties you get to contribute to, and you sort of become part of a like minded community of real estate investors, and you peripherally stay attached to your real estate, even though you're no longer the direct owner of it. Now, of course, being a direct owner of real estate is where you get both the profits and the control, but again, after a decade, or even 50 Years of direct ownership, you're just choosing to be done with that phase. So the 721 is a permanent solution. There's no sort of next decision, stress or risk. It is done. It is solved. But like I said, the shares are easy to divide among heirs compared to a portfolio of homes. All right, how about the cons the negative of a 721 exchange? Well, you're going to forfeit the ability to borrow against your asset, the refi for life plan that I talked about in the third way you can sell your property. Also you're going to have to pay some onboarding fees or some management fees to the partnership, and you're going to lose future 1031 exchange availability. And that is it. That is the 721 exchange. Again, I want to thank GRE listener, Nate from California, for reaching out to the show, and he's got a great blog. That's what got me to study the 721 exchange some more. This can happen with an up rate. You've probably heard of a REIT before, really.   Keith Weinhold  35:00   Estate Investment Trust and upreet, up r, e, i, t, that is in umbrella partnership. REIT, as investors, we acquire and hold real estate for the long term because it provides those real estate pays five ways, benefits of appreciation, cash flow, ROA, tax benefits and inflation profiting. But as you begin with the end in mind, it's going to be aware of your options so that you can optimize that inevitable exit of yours down the row. To summarize what you've learned so far on this segment of the show is that there are four viable exit strategies for real estate investors, the straight sale, the 1031, tax deferred exchange, refi for life, which isn't a sale at all. It's a series of cash out refis, and finally, the 721 exchange, where you sell to a partnership, all with their various pros and cons. So some really good options for you. You can look up Ridge lending group, if you want to do a cash out refi on your investment property, they're very well versed in how to do those things. That was the third strategy, the refi for life. What do I personally recommend that you do? Well, I don't know your situation, but I can just tell you what I do myself, and that is generally, if I like a property, I keep doing the refi for life thing, continued cash out refinances, and I just keep holding onto the property and enjoying that tax free cash. That's if I like a property. If I don't like a property, I will be more likely to 1031 exchange it up into something larger, and when I'm older and done being a direct real estate investor, that's time. I'll probably take a close look at a 721, exchange and see if it's right for me at that time. How can you learn more about these four exit strategies and what professional parties might you want to use to help facilitate it? Well, it is the same place that you get free coaching from us, and it's also the same place where you find just the right next investment property so that you're going to have something to sell in future decades. That is it gre investmentcoach.com that's free consultation with our coaches at greinvestmentcoach.com   Keith Weinhold  37:19   I'm Keith Weinhold, thanks for being here, but you weren't here for me. You were here for you. Don't quit your Daydream.   Speaker 1  37:29   Nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of get rich Education LLC, exclusively.   Keith Weinhold  37:57   The preceding program was brought to you by your home for wealth building, get richeducation.com you.  

Jhye Richardson joins Brad Haddin and Adam Peacock to chat about his comeback into the Australian side after multiple injuries. He shares some of the worst ways he’s been injured, Starc and Boland’s incredible stamina, and his Boxing Day Ashes dream. Plus, Adam Zampa joins the show to share the best T20 XI he’s ever played with - featuring legends such as Kohli, de Villiers, Gayle, Mitch Marsh and more! Send your cricket club cap to Producer Joel at the following address: Joel Harrison 50 Goulburn St, Sydney, NSW, 2000 Follow on Apple, Spotify and the LiSTNR app Watch on YouTube Drop us a message on Instagram and TikTok! See omnystudio.com/listener for privacy information.

01) Fros7novA - Pay Back (Extended Mix) [ Chasing Dreams Music ] 02) Iberian - I Love It (Extended Mix) [ PROXIMUM ] 03) Dj.brix & Jamie Neil - A year in Paradise (Extended Mix) [Prime EDM Records] 04) Henrik Nilsson - Tranceitation (Original Mix) 05) Niki Sato Pres. Selene´s Echo - Whatever It Takes (Extended Mix) [ Haiku Records ] 06) Simon Patterson - Miss You (Kiran M Sajeev Bootleg Remix) 07) Robert Reazon - Shine (Original Mix) [ Yeiskomp Records ] 08) Paipy - Rising Star (Extended Mix) [ ReUplift Music ] 09) Shimo Yuki - Nebulight Drift (Extended Mix) [ AROS Music ] 10) Alex Merk - Aureola (Extended Mix) [ Ablazing ReLaunch ]

Keith explores two big themes shaping real estate investors' futures: Why more Americans are becoming "forever renters"—and how long-term lifestyle and demographic shifts (not just today's prices and rates) are quietly reshaping the demand for rentals. The growing conversation around eliminating property taxes—which states are making the most noise, and why the real issue isn't whether property taxes go away, but what would realistically replace them. Keith also zooms out for a quick year-end tour of major asset classes—from stocks and real estate to metals and crypto—so listeners can see where real estate fits in the broader investing landscape and what these shifts might mean for their wealth-building strategy. Episode Page: GetRichEducation.com/588 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com GRE Free Investment Coaching: GREinvestmentcoach.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  For predictable 10-12% quarterly returns, visit FreedomFamilyInvestments.com/GRE or text  1-937-795-8989 to speak with a freedom coach 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— GREletter.com or text 'GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript:   Keith Weinhold  0:01   Welcome to GRE. I'm your host. Keith Weinhold, the Forever renter trend keeps getting embedded deeper into American culture. What's behind it? It's more than just finances. Then there's been more talk about eliminating property taxes, if they go away, what replaces them? And we'll discuss more today on get rich education.   Keith Weinhold  0:27   Since 2014 the powerful get rich education podcast has created more passive income for people than nearly any other show in the world. This show teaches you how to earn strong returns from passive real estate investing in the best markets without losing your time being a flipper or landlord. Show Host Keith Weinhold writes for both Forbes and Rich Dad advisors, and delivers a new show every week since 2014 there's been millions of listener downloads of 188 world nations. He has a list show guests include top selling personal finance author Robert Kiyosaki. Get rich education can be heard on every podcast platform, plus it has its own dedicated Apple and Android listener phone apps build wealth on the go with the get rich education podcast. Sign up now for the get rich education podcast, or visit get rich education.com   Corey Coates  1:12   You're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education.   Keith Weinhold  1:28   Welcome to GRE from Jamestown, New York to Jamestown, North Dakota and across 108 nations worldwide. I'm Keith Weinhold, and this is get rich education. Most investments reduce your income until you can start drawing on it and paying taxes on it in your 60s. That's a lot of decades of living below your means. Here learn how to grow your means and invest in vehicles that pay you when you're young enough to enjoy it and pay you five ways tax advantaged. Hey, there's a big misunderstanding about the housing market taking place right now. Yes, today's higher cost of home ownership contributes to Americans renting longer, for sure, but let's not make the mistake of thinking this is a new phenomenon just because home prices moved higher or mortgage rates began normalizing again a few years ago, that's not what it's about Americans renting longer. That is a trend decades in the making, and it has had and will continue to have major implications on the rental housing market decades into the future, buying your first home at 25 that was your grandparents or maybe your parents. Today, it kind of goes like this in life's journey for the wannabe homeowner, First comes the gray hair, then comes the mortgage. Last year, we learned that the average first time homebuyer age in America has moved up to 40. Back in 1981 it was age 29 per the NAR. More specifically one's real estate journey, it basically now goes like this, rent, rent, rent, have roommates again, go back to renting, chiropractor, Bank of mom and dad, then a mortgage maybe.   Keith Weinhold  3:34   Yeah, the home ownership rate, it keeps falling among every age group, most sharply among 30 somethings. The translation here is that more renters are coming. For those in their 30s, the home ownership rate maxed out at 69% in 1980 it's fallen to just 47% today. Those that are older, for those in their 40s, the homeownership rate maxed out at 78% in 1982 it has fallen to just 62% today and so on. Every 10 year age group all the way to those age 80 plus, the homeownership rate has fallen for all of them over the decades too, every single age cohort. The home ownership rate has fallen over the decades, and that is all per the Census Bureau. I'll tell you why this forever renter trend just keeps strengthening in a moment. But if you don't own your home, here are your current housing options. You can live with your parents. Yes, welcome back childhood bedroom with those glow in the dark stars on the ceiling. Sadly, you can be homeless. That is really not good. Or the other option is you can rent something nice, new, modern, and energy eficient. The group in which home ownership has fallen the most are those 30 somethings. 20 somethings aren't even part of what the Census Bureau reported here. It fell most sharply in the 1980s and then again, after the great recession. And here's what I know you might be thinking because we have some of the smartest listeners around. I bet that during times that buying was cheaper than renting, the trend reversed. That's what you might be thinking. No, it didn't. Regardless of what is cheaper, over time, the home ownership rate just keeps falling despite those periods, whatever is cheaper renting or owning now the overall home ownership rate that's fallen just since 2023 from 66% down to 65% that might not sound like much, but a Full 1% drop there means 1.3 million new renters already, just since 2023 and now you might be thinking, well, this is like totally because home prices and mortgage rates have been higher since that time. They've been higher since 2023 you are, in fact, somewhat correct about the affordability on a median priced home today, which is around 420k, I mean a 10% down payment and closing costs, that means you're out of pocket, probably more than 50k and it's 100k plus for a 20% down payment. And this is often an insurmountable hurdle without financial help from the Bank of mom and dad. But this is all part of a longer, multi decade set of trends. And look, a lot of these trends don't have much of anything to do with finances. People are renting longer because Americans wait longer to marry and have kids, and this has persisted, whether economic cycles are good or bad, and certainly, regardless of what mortgage rate levels are, younger generations value flexibility. That's another reason people are renting longer. Also 30 somethings are just simply more comfortable with subscription models like renting. I mean, look at Netflix and Uber and Spotify. It's been decades since anyone actually bought DVDs or CDs. Yeah, renting is just sort of another subscription model. More. Boomers are also renting for convenience. They would rather play pickleball instead of mow a lawn. This is something that they figured out a while ago. Also higher consumer and educational debt keeps people renting. You've got buy now, pay later. Companies like Klarna that are booming and mortgage eligibility got sucked from souls when all this happened? Hey, I've got more a ton of reasons for why more and more people are renters today, and how this trend is your friend if you are a rental property investor.    Keith Weinhold  8:13   Also, let's be mindful when we broke the gold standard in 1971 asset prices took off like a Blue Origin launch, and wages stagnated. That makes it tough to patch together a down payment and look, there is still an antiquated notion out there that apartments especially are like replete with paper thin walls and one in every five units is a meth lab. Have you toured apartment buildings, fourplexes, duplexes and single family rentals built in the last 10 years? Sheesh. Great amenities. Expect to see granite countertops, patios, fenced yards, gyms, sometimes even pet spas at Class A apartments, washer, dryer in unit. I mean, that has been standard for a long time, LED lighting, smart locks, increasingly office nooks for remote workers. Those are the modern amenities that you find in a rental. So the bottom line here is that as Americans age, there is an elongated renter stage of life. It's not just prices or rates, it is lifestyle. And this is why, even when affordability improves, the homeownership rate should continue to drop. More rental demand is coming. So yes, an elongated renter stage, this forever renter, if you will. That is somewhat about finances, but it is more, and this shapes the landlordtenant landscape for decades. And of course, your advantage here at GRE is even if you live in a High Cost part of the nation, we know how to buy here, say, a brand new build to rent single family property in an investor advantage place like Indiana, Missouri, Alabama or Florida, and we get it for, say, 300k or so, and you get a tenant that will pay you rent for four years or more in a lot of cases. So we've been talking about where the rental demand is coming from. It is both a lifestyle choice and a financial consideration for your tenant. Now this forever renter trend, that's something that really matters if you are providing housing to people. But some real estate trends just move so slowly, so glacier like that, you can kind of get lulled to sleep, until one day you look up and a trend has crystallized like the one that I just described. Let's compare a trend like that to something that people think matters a lot, and this does matter, but its importance is overinflated, and that is, for example, the President's nomination of a new Fed chair this year, and how that's going to move the real estate market. No, not as much as people think, as we've learned here, mortgage rates actually don't have that much to do with home prices. And yes, mortgage rates do move. They are correlated with the Fed funds rate. Yes, they are. When one is high, the other will be high. When one is low, the other will be low. They just don't move in direct lockstep. Let's listen in to the remarks of one Donald John Trump on the matter, because he talks about housing here. This is about a minute long, and then I come back to comment when Trump says him, he is apparently pointing to Treasury Secretary Scott Besant, who was in the room at the time, but as you'll hear, he's not expected to be the Fed Chair selection.    Speaker 1  12:06   Have you started the interviews for the Fed chair? Yes. Who have you interviewed? Ithink I already know my choice well. I like to him, but he's not going to take the job very fast. You like Treasury better, right? Much better, sir. So we are talking to various people and the I mean, frankly, I'd love to get the guy currently, and they're out right now,but people are holding me back. He's done a terrible job, hurting housing a little bit. The truth is, we've been so successful, we've blown past his interest rate. Stupidity. He's been wrong. That's why I call him too late. He's too late. Jerome, too late. Powell, he was recommended to me by a guy that made a bad, you know, bad choice, and it's too bad. But despite that, it's having very little impact, because we have, you know, we have all of these things happening, but it has an impact on housing to a certain extent. He's a fool. He's a stupid man, but we have some very good people   Keith Weinhold  13:09   yeah. So this matters, but it's as much entertainment and almost comedy against a demographic trend like the Forever renter propensity, a calendar year recently ended. It's time to make a quick rundown of the overall investing landscape. Once in a while we do that. It's good to check the movement on other asset classes outside real estate. It's our asset class rundown for last year, the s, p5, 100 was up nearly 17% that's the third year in a row of double digit gains in the year that Warren Buffett stepped down as CEO of Berkshire Hathaway, there's a warning. The S and P Schiller price to earnings ratio soared above 40 for only the second time in history. That's an indicator that stocks are overvalued. The only other time that happened was during the.com bubble in real estate, single family home values were up about 2% per the NAR just over 1% per Kay Shiller, apartment building values were flat to a slight decline. There is no such thing as an official apartment building Price Index, CPI inflation, up almost 3% on the year. It now hasn't been at the Fed's target of 2% or lower for a calendar year since 2019 Yeah, it has run hot all that time. Last year, mortgage rates fell from 6.9% to 6.2% and then, as you would expect, the yield on the 10 year treasury note also fell from 4.6 to 4.2 The dollar fell hard with a thud down 9% its worst performance since 2017 WTI oil prices fell from 70 bucks to $58 that's an 18% decline, but really the story of the year among all asset. Classes is what happened with precious metals, gold up a staggering 68% over the past year, touching an all time high of about $4,500 silver, up about 155% leaving investors flabbergasted and slack jawed, touching an all time high of over $80 platinum and palladium had near triple digit gains the real price of gold. This means inflation adjusted even jumped to its all time high last year, significantly surpassing the previous peaks of 1980 2011, and 2020. Realized this. More than 80% of all the recoverable gold on earth has already been extracted. Silver has been the top performing major asset class. In fact, today, a little one ounce silver coin is worth more than a 300 pound barrel of oil. Sticking with the topic of metals, inflation finally killed a penny. The last one was minted in 2025 in Philadelphia, ending a continuous run of the US minting the penny since 1792 no more. Bitcoin was down 6% falling from 93k to 87k the NASDAQ is aiming for near round the clock trading. It currently trades 16 hours a day, five days a week. They are looking to go up to 23 hours a day, five days a week in the second half of this year. That's our year end asset class rundown    Keith Weinhold  16:34   coming up in future weeks of the get rich education podcast. I am going to do an episode on overpopulation versus underpopulation? Is the world over or underpopulated, and is the United States over or underpopulated? This obviously has huge implications for the housing market. Then on another episode, we're going to discuss a real estate axis strategy we've never discussed before, called the 721 exchange. Now you might have heard of the better known 1031 tax deferred exchange, but the 731 is different. When you get older as a property owner and you realize that you don't want the hassles of landlording anymore, you can sell your properties to a partnership. The 721 exchange dictates that this is not a taxable event, and therefore no capital gains taxes or depreciation recapture are due. Property owners still get the benefits of cash flow and the appreciation across a greater number of properties and markets, and it's a great estate planning tool as well. Yes, that's the 721, exchange. We are going to cover it here. When it comes to investment real estate, I guess we cover nearly everything that's coming up on a future episode. As for today, we're talking about property taxes, if they go away, what replaces them that comes up shortly? Visit get richeducation.com to learn more about how we help you and what we do, and to get connected with real estate. Pays five ways type of properties. Visit gre marketplace.com. I'm Keith Weinhold. You're listening to get rich education.    Keith Weinhold  18:23   You know, most people think they're playing it safe with their liquid money, but they're actually losing savings accounts and bonds don't keep up when true inflation eats six or 7% of your wealth. Every single year, I invest my liquidity with FFI freedom family investments in their flagship program. Why? Fixed 10 to 12% returns have been predictable and paid quarterly. There's real world security backed by needs based real estate like affordable housing, Senior Living and health care. Ask about the freedom flagship program when you speak to a freedom coach there, and that's just one part of their family of products. They've got workshops, webinars and seminars designed to educate you before you invest. Start with as little as 25k and finally, get your money working as hard as you do. Get started at Freedom family investments.com/gre, or send a text. Now it's 1-937-795-8989,yep, text their freedom coach directly. Again, 1-937-795-8989,   Keith Weinhold  19:34   the same place where I get my own mortgage loans is where you can get yours. Ridge lending group and MLS, 42056, they provided our listeners with more loans than anyone because they specialize in income properties. They help you build a long term plan for growing your real estate empire with leverage, start your pre qual and even chat with President chailey Ridge personally while it's on your mind. Start at Ridge lending group.com that's Ridge lending group.com    Jim Rickards  20:05   this is author Jim Rickards. Listen to get rich education with Keith Weinhold, and don't quit your Daydream.   Keith Weinhold  20:22   Welcome back to get rich education. Episode 588 for the 12th consecutive year here, I'm your host. Keith Weinhold, I look forward to perhaps meeting you in person this coming weekend, as I'll be attending the real estate guys create your future goals retreat event in Colorado Springs. You probably remember that we have had the events host and leader, Robert Helms, of the real estate guys on the show with us here several times in the past. What a class act I am spending a few extra days after the event in Colorado Springs to both look at local real estate in that market and climb the Manitou incline, that's this grueling climbing challenge up a slope of Pikes Peak. If you want to climb with me after the real estate guys event, bring your running shoes and I'll lead a group of us up there    Keith Weinhold  21:13   if property taxes go away, what replaces them? Realtor.com recently had a terrific article about this that you can look up the property tax revolt is spreading, but the replacement plan isn't let's look at the probability and possibility of eliminating property tax. Think about how property tax elimination would increase the value of your property well, because now every buyer could afford to pay more, since they won't have that property tax expense. And of course, if you were to remove property tax as a line item from your income and expense statement, your cash flow could double, triple, or even five or 10x depending on your current cash, on cash return. But that cash flow part is less likely because most efforts to eliminate the property tax, they focus on homes, primary residences. Well, several states have either active legislation efforts or these sort of informal grassroots movements to significantly cut down or just totally abolish property tax, but no state has fully eliminated them yet. The most prominent efforts are in five states, most notably Florida, where Governor Ron DeSantis has made the most noise about it. He proposed eliminating property taxes on homesteaded which are primary residence properties, and he aims for a constitutional amendment on the November ballot to achieve this, that is 10 months from now. And that proposal, it's still pretty early in the legislative stages, and the state is also considering property tax rebates in the meantime. Now, even if you own rental property, and property tax were only eliminated on primary residences, it would still cause the value of your property to boom pretty nicely, even if it didn't help the cash flow. The state that's made the second most noise is Ohio. A grassroots organization has called Citizens for property tax reform. They have actively campaigned to place a constitutional amendment on their ballot that would just totally abolish property taxes statewide. Third most is Kansas. They propose legislation and that aims to effectively bump up sales tax to replace property tax. The fourth out of five is North Dakota. Let's look at what they're doing following a failed 2024, ballot measure to just totally abolish the property tax outright. Well, there's a new proposal from the governor, and that seeks this phased out elimination for most homeowners over a decade. And see, North Dakota has a slightly better chance of pulling that off, because they can fund that from the state's Legacy Fund, that's their oil well fund, and then making the fifth most abolition of property tax noise is my home state of Pennsylvania. Lawmakers have introduced bills to eliminate all property tax. They also aim for a constitutional amendment to put that issue before the voters. So they are the five states that have made the most noise, and that's what their approach is.    Keith Weinhold  24:43   Now, seemingly for most of my life, homeowners and landlords have griped about property tax, saying it's the most ridiculous tax of them all, because you pay it year after year after year in perpetuity. And it just never goes away. Unlike other taxes that are just a one time tax, even if your property's mortgage is paid off, you still have a house payment, and that is largely due to property tax. Understand, though, that currently a lot of states give you a reduced property tax once you reach a senior age, usually age 65 plus some start as low as 61 but when it comes to eliminating the property tax, there's a part of the conversation that's really important, and it has been notably absent, and that is a novel solution to replace the lost revenue. And it gets rather interesting to look around and see where else the money might be raised if they eliminate property tax. See, and this is really important to understand, property taxes generate 70% of local revenue, up to 90% of school funding and 25% of all state and local tax revenue in aggregate in Florida. Okay, that's just in Florida those numbers, but a lot of states have a similar scenario, and in Florida, that comes out to about $50 billion a year. That is a big hole to plug, that is a big gap to fill, and it underlines both the burden homeowners are currently shouldering and how hard it's going to be to fill that gap with anything that's more stable or equitable, that's going to last as a funding source, yes, 90% of school funding. You heard that, right? If you talk to an old timer, you know sometimes you still hear an elderly person refer to property taxes as school taxes. So see, this question of, Do you want to abolish property taxes? One reason that's become louder and louder these past few years, and why you hear more about it is due to that increased affordability strain. That's why you're hearing more about it now the question, do you want to abolish property taxes? That is the wrong question. A grassroots push to AX the property tax that's gained traction, really, among some senior homeowners facing property tax bills that are as high as their mortgage. Once was last summer, for example, in Mahoning County, Ohio, the tax delinquency rate hit 18% almost one in five people having trouble paying their property tax, and that county had more than 70 million in unpaid property taxes. In some neighborhoods in Youngstown, as many as one in three homeowners were behind. And in Cuyahoga County, which is basically Cleveland, values jumped 32% on average after reassessments that fueled a $60 million dollar increase in past due balances this whole do we want to abolish property taxes? Question? You're going to see why that's the wrong question and why it's incomplete, because that slogan that skips the only part that really matters here, and that is, what is the replacement plan, realistically, taxpayers should be asked if, in lieu of property tax, they'd rather pay higher sales taxes or higher income taxes, or for those with no state income tax, like Texas or Florida, pay one for the first time. I don't like those answers. I wish governments would spend more efficiently, but that's not the angle that we're looking at here. Property taxes are the true lifeblood of local governments. I mean, they fund everything from public safety to roads to schools, and just because property taxes disappear, well that doesn't mean that the need for firefighters goes away, that the need for police officers goes away, or the infrastructure for public school systems is going to be gone, or the roads go away. So if property taxes are cut, then another revenue generating device has to emerge to keep services funded and running. And it's a little funny. I've been talking about certain states here. But of course, property taxes are exacted and assessed at the county and local level. And look, I mean, you know how the world works, you know what the nature of society is. As soon as someone has their income stream, they quickly grow into that lifestyle and the new larger spending pattern. So taking away an existing income stream or even reducing it a little, I mean, that can almost trigger outrage and protests, for example, the outcry that we had last year about cutting snap payments. But it works this way. With anything. I mean, sheesh. For the majority of Americans, if you cut their income even 10% they would struggle to survive. They would struggle to put food in the fridge. So these repeal the property tax campaigns, they often avoid the reality of the replacement math.    Keith Weinhold  30:19   Now, some states have taken a swing at replacing property tax revenue, but few, if any, have succeeded. Now, Nebraska lawmakers, what they did is they floated higher cigarette taxes as a way to fund a goal of cutting their property taxes by 40% I mean, nice try. But according to an analysis by the Tax Foundation, that tax base was far too small. I mean to tell you more about what a terrible miss. This example is Nebraska cigarette taxes. They raised about $52 million in 2024 while property taxes raised $5.3 billion that is 100 times more, not even close, even if you could raise more money in the short run, excise revenues like this cigarette tax, they're pretty volatile, and they often shrink as the demand ebbs and flows. So it really makes them a poor backbone for expenses that grow over time, and they don't eliminate the cost so much as concentrated. So what they do is they sort of shift this broad civic obligation funding all this stuff, police, fire, school, from homeowners onto a much narrower group, in this case, people who smoke. That is not going to work for Nebraska, all right, well, what about a bigger deal, like replacing it with sales tax? Well, they run into a different problem. Local economies are not built the same. You might have a sales tax heavy tourist County, well, they can raise far more money than an agricultural county. And Florida is a clear illustration. They have lots of tourism and lots of agriculture replacing property taxes with sales tax. That would require eye popping sales tax rates too. According to the Tax Foundation Florida statewide, they would have to go from 7% to over 15% sales tax in Florida. But it gets even worse, because counties with a thin sales tax base would have to charge over 32% sales tax. My gosh, that is not going to work, all right. Well, how about another big one? Let's have income taxes replace property tax in a lot of states. I mean, the income tax that's large enough to raise pretty meaningful revenue. But the trade off is that income taxes come with their own sort of economic and political distortions, and once they're added, you know, they rarely stay confined to the tidy swap that voters were promised. I mean, look at New Jersey. They adopted an income tax in the 1970s to provide property tax relief, but over time, that swap proved hard to manage and hard to enforce, and now today, New Jersey has one of the highest effective property tax and state income tax rates combined in the nation. So the point is that all these property tax replacement tools are just inherently piecemeal. Each tax or fee has like this different payer base or some different vulnerability. I mean, if tourism dips, for example, revenues could drop really fast. And the same is true if a regulated industry contracts, or if consumption patterns shift. And you know that volatility, that's manageable for some narrow program, but that is dangerous as the foundation for essential services like public safety and street maintenance and police and schools and fire. Well, how about forgetting all that? Let's just have the government then totally get out of providing public safety and not have the government provide street maintenance and have the government get out of schools. I mean, we used to have more private companies provide you with some of those services. We didn't even have a federal income tax at all until 1913 other than a temporary one to fund the Civil War. But all of that is a bigger topic that we are not going to get into today. The point is, instead of asking the question, do you want to abolish property taxes? The better question is, which replacement are you choosing and who pays for it? Because local costs come on, they're just not likely to shrink anytime soon. After all, all of this schools, fire and police departments, public works, divisions, they're all subject to the same inflation and the same rising costs as the rest of the economy is so the property tax is unpopular. As it is, it does have one functional advantage. It is tied to this immovable base of properties. It's collected locally, and it's designed to fund on going services. That is not to say that some homeowners don't need relief. Some of them clearly do. But eliminating property taxes, that just does not eliminate the underlying cost of government. All it does is reallocate it, and that reallocation can get messy, that shifts a bigger burden onto a smaller share of taxpayers, whether it's smokers, like it was in Nebraska, or whether it's rural shoppers like the Florida sales tax example, or doubly on working homeowners, like it is in the New Jersey income tax example. I have studied this, and I have not seen novel approaches that really keep communities funded without creating some new distortion somewhere else. But unfortunately, one thing that I have seen is this repeal rhetoric, and it makes these political platitudes all that want to just conveniently skip the replacement plan, but it all sounds good and popular when someone stands up there and says that they want to eliminate property taxes. So really the honest question on a ballot. It's not, do you want to abolish property taxes? The honest question is, are you willing to pay higher sales taxes or higher income taxes or adopt one for the first time and accept the distortions that those choices to create to eliminate the property tax? I'm not going to get into the political side of all this, because that's not what we do here. The bottom line is, though, that you're probably going to hear more about the property tax going away. It is unlikely, of course, as income property investors here, property tax is largely built into the rent. It is passed along to your tenant, and a small reduction would help you out, probably not so much on your cash flow side, since most of these proposals are only for primary residences, but even a small property tax reduction on primary residences that would boost all property values, even rental property in the one to four unit space. But you shouldn't expect much here. If property taxes are eliminated, there is just no easy and viable replacement. That's your answer today, if you represent a company that serves real estate investors get rich. Education has over 3 million IAB certified downloads and 5.8 million total listener downloads. You can learn more about advertising on the show at getricheducation.com/ad, that's get rich education.com/ad   Speaker 2  37:51   for the production team here at GRE, that's our sound engineer, bedroom jampo, who has edited every single GRE podcast episode since 2014 QC and show notes Brenda Almendariz, video lead, Binaya Gyawali, strategy Tallah Mugal, video editor, Saroza KC and producer me, we'll run it back next week for you. I'm your host. Keith Weinhold, Don't Quit Your Daydream.   Speaker 3  38:17   nothing on this show should be considered specific personal or professional advice, please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of get rich Education LLC, exclusively   Keith Weinhold  38:45   The preceding program was brought to you by your home for wealth building, getricheducation.com  

In this week's episode of Search with Candour, Jack Chambers-Ward welcomes Nicole Lee to discuss the significance of long tail keywords in SEO and content marketing.Jack and Nicole delve into how these keywords become even more crucial in the age of AI, focusing on creating personalised, bottom-of-funnel content.The episode also covers Nicole's strategies for programmatic SEO, the challenges of setting client expectations, and the importance of high-intent content.Follow NicoleWebsite: https://nicoleleemf.com/ Daydream: https://www.withdaydream.com/ LinkedIn: https://www.linkedin.com/in/nicolelee-marketer/ RecommendationsCorner Maps: https://get.corner.inc/Opal: https://www.opal.so/ Graphite AEO tools: https://graphite.io/five-percent/aeo-toolsThinking in Bets: https://www.goodreads.com/book/show/35957157-thinking-in-bets Timestamps00:00 Introduction to Long Tail Keywords01:20 Welcome to Search with Candour01:36 Meet Nicole Lee08:16 The Importance of Long Tail Keywords in SEO15:55 Balancing Informational and Transactional Content29:42 Programmatic SEO Strategies36:11 Setting Client Expectations for Leads37:24 High-Value Conversions and Client Examples38:28 User Behaviour and Educated Consumers39:57 Specialised Content and High-Intent Articles43:50 The Art of SEO and Product Marketing49:08 Nicole's Recommendations55:58 Staying Curious and Recommended Tools01:05:19 Upcoming Guests and Future Content

Nancey is still recovering from the flu. So in lieu of a full-length episode this week, please enjoy this dream story about a flying tractor and a plentiful harvest. If you're interested in sharing a dream story for your own, message the show on IG ( ⁠@dreamingincolorpod⁠) or vial email (dreamingincolorpod@gmail.com).Follow Nancey on IG @nanceybprice and TikTok @nanceybpriceVisit Nancey's Website: ⁠www.nanceybprice.com⁠Watch her lecture at the University of Rhode Island: https://www.youtube.com/live/5owXYMJdfH0?si=7tILJtiTz5VY6z4eMusic by Omar Faruque from Pixabay

Keith explores why the real goal of building wealth isn't luxury—it's protecting yourself from the emotional and practical pain of money stress.  You'll hear how owning the right kinds of assets can change your lifestyle options over time, and why waiting on the sidelines can quietly erode your financial future. Keith also pulls back the curtain on a major, often overlooked force that has helped keep real estate values resilient for years, and what that means for anyone thinking about adding more property to their portfolio.  Finally, you'll get a sense of the kinds of opportunities and strategies listeners are using right now to move from just getting by to playing to win in their wealth building journey. Episode Page: GetRichEducation.com/587 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com GRE Free Investment Coaching: GREinvestmentcoach.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  For predictable 10-12% quarterly returns, visit FreedomFamilyInvestments.com/GRE or text  1-937-795-8989 to speak with a freedom coach 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— GREletter.com or text 'GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript:   Keith Weinhold  0:01   Welcome to GRE I'm your host. Keith Weinhold, more important than building wealth is avoiding poverty. It's backed up by research. Learn about a force that constantly gives a boost to real estate values that you probably haven't considered before, and own assets or get left behind. I discuss a plan for doing it today on get rich education.   Speaker 1  0:29   Since 2014 the powerful get rich education podcast has created more passive income for people than nearly any other show in the world. This show teaches you how to earn strong returns from passive real estate investing in the best markets without losing your time being a flipper or landlord. Show Host Keith Weinhold writes for both Forbes and Rich Dad advisors and delivers a new show every week since 2014 there's been millions of listener downloads of 188 world nations. He has a list show guests include top selling personal finance author Robert Kiyosaki. Get rich education can be heard on every podcast platform, plus it has its own dedicated Apple and Android listener phone apps build wealth on the go with the get rich education podcast. Sign up now for the get rich education podcast, or visit get rich education.com   Corey Coates  1:14   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  1:30   Welcome to GRE from Dar es Salaam Tanzania to Darlington, South Carolina, and across 188 nations worldwide. I'm Keith Weinhold, and this is get rich education the voice of real estate investing since 2014 and it's a new year, part of the reason why you need to build durable wealth for yourself is actually not to be wealthy. It's really to avoid a lack of wealth. It's in order to pad yourself against poverty. Now, shortly, I want to talk to you more aspirationally if you are or soon plan to make 500k per year or more.    Keith Weinhold  2:15   But first, there are a number of studies that show that beyond a certain level, more wealth barely increases your happiness level. In fact, if you ask many people, they say that doubling their income or doubling their net worth is what they really want, like, that's their goal. Like, in their mind, that's the benchmark in which they've made it. And you know what, when they double their income, though, then they want to double it again. They think that that is the next benchmark. So there can be this endless amount of wanting, because once you've doubled, you just want to keep doubling. But what's really more important is padding against money problems, because if having a little more doesn't change your happiness much, well, it's poverty that can really diminish a level of happiness and fulfillment in your life. So money problems don't just hurt your wallet. They actually hurt your emotions. And this isn't just some motivational poster idea, the statistics are clear. Multiple studies show that when money is scarce, when paying the regular bills feels like a monthly street fight, people report more sadness, more worry and even depression, not just sometimes, but constantly. The reality is that about 71% of Americans say that money is a major source of stress. My gosh, more than seven out of 10. So that's not a fringe category. That's the norm that say money is a major source of stress. Another study found that 42% of adults say money negatively affects their mental health. So close to half of the people walking around you right now feel emotionally beat up by their financial situation, and the gap gets even wider when you compare groups, when people experience serious financial hardship, nearly half, 49% show signs of depression among people without any financial hardship, only about 11% of that group show signs of depression. And Northwestern Mutual did an extensive study on all this. So it's not just a small difference, it's a completely different emotional reality, almost like two separate worlds. To put it plainly. For you, money will not guarantee happiness, but a lack of money can absolutely fuel sadness, and this matters. Because financial confidence isn't just about dollars. It's about dignity. It's about feeling like you're able to breathe, and it's about believing that your future can be bigger than your past. I mean, the research also shows the relationship flows in both directions. Money stress can make mental health worse, and poor mental health can make financial decision making harder. So it's sort of this loop, this cycle. And what breaks the cycle? It's not luck. It's not hoping the economy magically fixes all of its problems. It is going on offense, taking steps that build security instead of surrender, for most people, that turning point comes when they start owning assets, not just paying bills. It comes when money stops being a source of fear and it starts being a tool. Because though we focus on real estate investing here at GRE but ultimately it is a lifestyle improvement show. And before we're done today, I'm going to talk about what you can actionably do to go on offense. Now, what if you already have a higher income, or you expect to make a high income in the near term, if you're earning roughly $500,000 per year or more, and you value time efficiency in making sure that you don't live a rough quality of life. You are on the threshold of a tier that helps ensure that you can avoid some misery. Yes, there is a step change here that can help ensure you have a higher standard of living. Do you know what I might be talking about? Any idea 500k of income is where it begins now. It's only beginning here. At this point, to make sense, where you tilt into starting to fly private instead of flying commercial. Yeah, private flights. Now your situation is going to depend on more than just the income. It's whether or not you're single or you have kids and more, but it's at this income level where you can start to cover a $10,000 flight without biting into your essential living expenses. It's most justifiable when your time savings or your productivity gains translate into real value. I'm talking about things like business deals, meetings and schedules and the benefits of flying privately are pretty significant. Time efficiency is the real superpower here, drive up to the plane, wheels up in minutes. The flexibility is there. You can leave pretty much when you want. You can change your flight plans mid trip if you need to. You get access to smaller airports. That means you can land closer to your final destination and skip big city traffic congestion. You've got privacy and security, no crowds, no TSA stuff. You've got quality of experience, comfort, quiet cabins, custom catering, no competing for overhead bin space. Now even affordable private is still pretty expensive. It is substantially more than first class commercial seats, and I have had limited experience flying private, but at 500k of income, flying private can still feel like a stretch, even though it's doable for you, a more comfortable range is a million dollars or more of annual income, that's when private flights feel much easier to justify for business or lifestyle. Now, with $2 million of annual income or more, most heavy private flyers live here in this range, the $2 million plus income level, they can charter, they can fractionally own, or they can use memberships, all with less stress. When you earn this much, and if you're ultra high net worth, we're talking about $5 million worth of income plus or $20 million worth of net worth plus, well, then private flying is really commonplace. This is where you often have a personal jet, concierge services and flexibility on demand. So as the first episode of the year here, I want to give you some opportunity to dream and goal set. Yeah, you need to stretch out and give space to your aspirations sometimes, and this is a good time to do that, really, though, a more important reason for increasing your income and net worth is that it helps you avoid the discomfort of poverty. But yeah, come on, if nothing else, can you believe that before every commercial flight you have to hear that nonsense about how to inflate a raft if you're. Plane crashes in the water, or you could use your seat as a personal flotation device. Come on your seat. Can't even support your back for a three hour flight. If there's ever been a reason to invest Well, it's so that you never have to hear that stuff again before every flight chase    Keith Weinhold  10:19   last week here on the show, you'll learn more about how stable real estate prices are, why prices have never crashed in your entire life, and also why they can't double in one year. Real Estate is too slow moving 30 days between you making your offer and you closing the deal, that's actually considered pretty fast. In fact, if national home prices ever crash, I will legally change my first name to Fabrice, yes, Fabrice, I would also do that if they doubled in a year. It is almost impossible for either of those things to happen. You learned about how these things have not happened in your entire lifetime on last week's show, yes, even in 2008 in the last 85 years, nominal home prices have risen every single year, except seven of them now. Why is that? Why are the prices of US housing so resilient and just keep going up up up, almost inexorably? Well, it's actually more than just the main well documented reasons that you know about and that we've talked about here. It's about more than these attributes, like population growth, household formation, wage growth, inflation, eroding the currency and land scarcity in desirable areas beyond all of those, one reason that home values just keep going up, up up and are expected to rise again this year is something that We have not discussed yet, and that is government intervention? Yes, in the US and a lot of world places, housing is not a free market. We have a free ish market that sort of comes with training wheels and support animals. Think about how the government helps ensure that home prices stay propped up even through most recessions. We're talking about attributes like ever expanding loan access and mortgage interest deductibility. Then there's depreciation in write offs for investors like us and property tax structures that lag market value when loans have lower down payment requirements or a lowering of credit score requirements and ever expanding loan limits in terms of dollar amounts, well, that increases the demand for those that have the capacity to pay, and it nudges up prices even more incentives, like deducting your mortgage interest in tax depreciation when you don't even have a real expense, but yet you get to write it off anyway. It all heaps on the government driven demand for real estate Now none of these individual things, these government interventions, raise prices overnight, they increase demand structurally. There's evidence that the government is doing even more in recent years to prop up housing demand than they have in the past. This is increasingly a propensity to not let housing fail like it did in 2008 I mean, just look at covid During 2020, and 2021, what a glaring example of how government will prop up home values and not let them fall down if you lost your job during covid. Oh, we'll give you mortgage loan forbearance. That's where you could skip. Oh, just say nine monthly payments, and then you can just tack those nine payments onto the end of your 30 year loan and make those payments decades from now. There was a foreclosure moratorium in effect then too, so you've got forbearance and low rates and stimulus checks and a ban on foreclosures. Well, all of that helped borrowers make payments, and that supported home price growth. There was no fire sailing, really, that could have taken place then, and you will recall that during that time period, in fact, the year 2021 national home prices soared 19% so housing is not a completely free market. You really don't have to look very far to know that. I mean, Fannie Mae and Freddie Mac are both still government sponsored and still in conservatorship. And here's the thing, so far, I've only talked about how government has propped up the demand side. Side of the market. I've only talked about half of it. Don't forget the sometimes unintentional supply restriction the governments induce as well keeping housing supply in check. Well, that helps drive price appreciation. I'm talking about the zoning spaghetti that new homebuilders have to navigate through the permit purgatory, minimum lot sizes that can seem larger than some European countries, environmental reviews that last longer than the movie Avengers. Endgame was that a three hour, two minute movie, all of these roadblocks limit new housing supply that makes it harder to build. So governments provide an ever present tailwind to housing values by both boosting demand and by crimping supply. Government amplifies these forces, sometimes intentionally and sometimes unintentionally, but the result is the same propping up housing values. If all these years since coming out of the Great Recession have shown us anything, and the 2020 pandemic reinforced it, it is to either own assets or get left behind. You've got to own assets or you will be left behind, and that's whether you're trying to stay away from poverty, like I talked about at the top of the show, or whether you're aiming to fly private instead of commercial, something more aspirational, really. That's the lesson I've got more straight ahead here. There will only ever be one get rich education podcast episode 587 and you're listening to it.    Keith Weinhold  16:43   You know, most people think they're playing it safe with their liquid money, but they're actually losing savings accounts and bonds don't keep up when true inflation eats six or 7% of your wealth. Every single year, I invest my liquidity with FFI freedom family investments in their flagship program. Why? Fixed 10 to 12% returns have been predictable and paid quarterly. There's real world security backed by needs based real estate like affordable housing, Senior Living and health care. Ask about the freedom flagship program. When you speak to a freedom coach there, and that's just one part of their family of products, they've got workshops, webinars and seminars designed to educate you before you invest. Start with as little as 25k and finally, get your money working as hard as you do. Get started at Freedom family investments.com/gre, or send a text. Now it's 1-937-795-8989, yep, text their freedom coach directly again. 1-937-795-8989,   Keith Weinhold  17:54   the same place where I get my own mortgage loans is where you can get yours. Ridge lending group and MLS, 42056, they provided our listeners with more loans than anyone because they specialize in income properties. They help you build a long term plan for growing your real estate empire with leverage. Start your prequel and even chat with President chailey Ridge personally while it's on your mind, start at Ridge lending group.com that's Ridge lending group.com   Dana Dunford  18:27   this is hemlane's co founder, Dana Dunford. Listen to get rich education with Keith Weinhold, and don't quit your Daydream. You Keith,   Keith Weinhold  18:45   welcome back to get rich Education. I'm your host. Keith Weinhold, we're talking about new angles with respect to how the future belongs to asset owners. Every year, people say, This is my year, but only a few actually take the action to back that up and make it come true. One thing that I've learned is that people love saying, I want an opportunity, but what they really want is certainty. Unfortunately, certainty only shows up after opportunity is gone. History is full of people who walked past moments like this now owning more of an asset like real estate today, and instead they just look and say, Oh, it's probably nothing. Well, what about alternatives? What's your employer's plan for you? I mean, really, what's a typical employer's plan for employees spend 40 years here at this desk, and I guarantee that you'll become moderately comfortable with a nice 401K balance that you can start withdrawing from by the time you're age 65 at which time you'll start paying taxes on it too. So really, that's it. That's their plan for you. Yes, that's their plan for you. Though, as you know, I do not forecast mortgage rates. No one, not one analyst or rating agency, expects mortgage rates to fall substantially any time soon as we look at the real estate landscape, in fact, among 21 different major research groups, which include PNC Bank, Redfin, Moody's, wells, Fargo, the NAR totality, if you average what their forecasts are, one year from now, mortgage rates are expected to be at the same level that they are today, which is about 6.2% if you want to add more assets, prices are probably only going to be higher one year from now. The Fed is involved in QE like behavior again, which resumed last month, that gives the effect of more money printing, and it provides an environment for a continued price run up across not just real estate, but nearly every asset class. Current CPI inflation is 2.7% and long term inflation expectations are elevated. The Fed is cutting rates. The current Fed funds rate is about 3.6% and the President wants the Fed funds rate cut to 1% central banks are stockpiling gold, and the US dollar just had its worst year since 2017 so a lot is lining up to keep supporting housing values. Now, when we zoom out, starting back in 2012 us home prices have now risen 14 years in a row, and the average annual gain since that time is about 6% which is sustainable and close to historic norms. Year after year. Some people keep waiting for the right moment, and meanwhile, the right moment just keeps passing them by. And look, now here's a really interesting way for you to look at things from a long time investor like me, I have bought a wide variety of investment real estate over the years. I bought single family homes to both live in and single family homes to rent out vacant land, agricultural parcels, small apartment buildings and larger apartment buildings on every single one at the time when I purchased it, it was the most that anyone had ever paid for that property in that property's history, and if there were bids and I ended up getting the property, then I was the highest bidder as well. So on. Effectively, every single property purchase of my life, I paid more than anyone ever. And if someone had no understanding of the real estate market. They might think that that sounded bad, like I executed with a poor strategy or a lack of experience or direction, but that's just usually how it works in real estate, with the incessant postulation of almost unceasing appreciation and inflation, and years later, when it was time for me to sell the property, what were those conditions like? What happened then? You guessed it, I sold it for the most that it had ever sold for. So for that next buyer, that was the most then that anyone had ever paid for the property in history, yet again, and if it was a bidding situation, chances are I sold it to the highest bidder. So therefore, that has nothing to do with luck, that has nothing to do with timing, that is simply being an active participant in the real estate market and enjoying the leverage and all the other benefits all the while. So history shows that trying to time things based on market conditions or what you think market conditions are going to be, that does not work. What does work is owning more assets sooner. Every property that you purchase, expect to pay more for it than anyone ever has in that property's history. And then every property that you sell down the road, expect that you're going to sell it for more than what anyone has ever sold it for. Historically, that is normal. Now if your net worth is below $1 million or even below $5 million you really can't play the game not to lose. That's what keeps people stuck. You've got to play to win. The world already has your money. If you want access to it, you have simply got to go out. Out and get it. You play offense now, and you can play defense later, when your financial position is where you want it really and here's a huge insight, more money is lost trying to avoid a downturn than is lost actually being in the market when one finally happens, like I've discussed lately, real estate price downturns are uncommon. Sitting out and waiting is a wealth killer, because even if a downturn does happen, well, if you're already invested, you are positioned for the upturn. You're going to get the full measure of the upturn. That's where the real gains are, and this is where real estate is different. Leverage just keeps working for you. In the background, your 401, k does not do that. There's no leverage beyond maybe a two to one employer match, and then you get taxed when you finally touch the money. Some people like to gamble a little play a prediction market like poly market. Have something in Bitcoin, maybe even have exposure to a risky altcoin. I guess the NFL playoffs start this coming weekend. Some people want to bet on that and have their fun. Maybe even be invested in a high flying tech stock, or even the sp500. These vehicles rarely build wealth when you're actually young enough to enjoy it, because you're probably unleveraged there, you're exposed. You've only got your dollars working for you, not others, and you sure can do some of that day to day stuff. Go on polymarket and bet on when man will first land on Mars or something. Have your fun while the real wealth is built by the quiet, slow moving leverage of your larger real estate portfolio. In the background. Real estate, you can put 20 to 25% down on a 200k income property and control the whole thing. That's what investors are doing with our GRE marketplace properties right now, often in a low cost market like, say, Kansas City or Memphis, say that, for example, you're looking to add four doors this year, four rental units. Now that might take the form of one duplex and two new build Florida single family rentals. Now, with about 250k you can control $1 million of property adding assets this year. And here at GRE our nationwide provider network connects you with the real deals, and our providers often tell us about them before the public knows, for example, the properties where the builder still in this environment buys your rate down to perhaps four and a half percent. That is still happening. And why do the properties that our GRE investment coaches connect you with seem like such good deals at times? Well, there's a few reasons for that. Investor advantage markets just intrinsically have low prices. There's no agent that you have to compensate. It's a direct model that keeps the price down. These providers provide homes in bulk that helps keep the price down. And since we're dealing with investment properties, income producing properties, there are not any of these owner occupied emotions, so you don't get unreasonable sellers that hold out for a high price because there's some sentimental attachment there, or something like that.    Keith Weinhold  28:38   Let me give you three examples of real properties that our GRE investment coaching helps connect you with right now, and this is the place to be entry level homes, because entry level homes are few long term you are going to own a scarce asset that everybody wants. The first one is a brand new build single family rental in Cullman, Alabama. That's right between Birmingham and Huntsville, booming Huntsville. Now this property is currently vacant. However, it's in an A class neighborhood, so good appreciation potential, but less cash flow on this one, the rent is $2,100 the purchase price is 317k Yes, just 317k for this five bed, three bath, 2500 square foot rental, single family home. That's new build. One advantage Alabama has, and why we often have available Alabama properties is that really low property tax in that state you're going to benefit from a low fixed expense ratio over the long term. Alabama, property taxes are well under 1% per year as a percentage of the property value. In fact, at less than 410 Tax of 1% Alabama has the lowest property taxes in the entire continental United States. Only Hawaii has a lower one, where you're going to find a national average of 1% or a little more than 1% the second property is also brand new construction. It is a duplex in Goddard, Kansas, which is outside Wichita, each side of the duplex has three beds, two baths and 1300 68 square feet combined. Rents both sides are $3,500 and the purchase price is 447k and it is leased. Both sides are rented out. You can contact our free investment coaching and scoop up this or one like it today, and I'm looking at pictures of this really good looking new build duplex in the Wichita area. Looks like a two car garage on both sides, really attractive. And again, on these new builds, oftentimes the homebuilder is still buying down your mortgage rate for you, often under 5% the last one I'll mention, and I'm just giving you three samples to help give you an idea here. And if you're listening to this in a few years, you'll probably wish you could purchase these at prices this low. This last one is not new builds. Unfortunately, I can't quickly find the year of construction, but it looks older. It is a Kansas City single family rental, fully renovated. The cash flow numbers are super attractive. $2,100 rent on a purchase price of just $227,500 and free property management for two years is offered here on this renovated Kansas single family rental. Our investment coaching can answer questions about it for you. When something's renovated, you definitely want to see what the scope of work is. And there are also larger properties available. If you're looking to trade up some of your properties with accumulated equity into something else, we can help build an entire portfolio for you, or you might currently be only invested in one market, where we can help you determine what second market might make sense for you based on your time horizon and your own goals. Hey, maybe you've got a private plane in a decade kind of goal, or maybe we'll help you find out that adding more property does not make sense for you at this time in your situation, even though the opportunities are pretty good right now, because compared to two years ago, the inventory to select from is wider today, And the mortgage rates are lower now too GRE investment coaches are your free trusted advisors. It's like having a silent partner on your deal, someone who gives you insight but doesn't take any equity. There's no compensation for you to provide at all. It's about your portfolio, your goals and your direction. And our coaches also help you with services related to managing your real estate assets long term, like your tax and CPA questions, legal questions, though, that's pretty limited, because we're not attorneys here. For example, what happens if you have an appraisal surprise and the appraisal comes in lower than the amount that you've contracted to buy a property for, we help you with something like that, any inventory issues or inspection issues and property management guidance that you might need. In fact, if you've engaged with our free investment coaching in the past, even a few years ago, and we helped you find a property and say, now you have some sort of property management issue. Let us know. Keep in touch with your GRE investment coach. You tell someone like Naresh here, and he will step in. And when you set up a time to chat, which you can do at greinvestmentcoach.com There's really nothing special that you need to do to prepare if you can bring a 20% down payment. Now the ball is already rolling, and in today's environment with closing costs, that's usually about a 50k minimum. It helps if you're pre approved for a mortgage loan with Ridge lending group, or whomever your lender of choice is. What's interesting is that these deals are good. These are real estate pays five ways, properties that our coaches help connect you with. So sometimes we are buying these properties ourselves here at GRE. We have in the past, but there is no way we can buy them all, not even close. That means that an opportunity remains for you. Yes, we are real estate investors ourselves here at GRE, right now, there are better properties available than ones that we've bought ourselves recently, and there is more overall selection too. You can easily see the coach's calendar, select a time and then have a phone call or a zoom chat, whatever you like. If. From there. Our coaches usually give you their phone number, so then later, you can even text them. Our coach, Naresh, he responded to someone on Thanksgiving. That's the level of dedication here. So here's the next step. Book a time at GREinvestmentcoach.com you can do that now. That's where the calendar lives. There's no back and forth. Just pick a time right there that works. It's Free. Select a 30 minute time slot, and lately they've been available seven days a week. And you're going to walk away with clarity on your goals, your timeline and what's realistic for you, if you're tired of watching from the sidelines, tired of trying not to lose, tired of waiting for perfect conditions, and conditions are never perfect, well, this is your moment to play to win. It's pretty easy to remember to connect with a GRE investment coach. Visit greinvestmentcoach.com Until next week, I'm your host. Keith Weinhold, don't quit your Daydream.   Speaker 2  36:10   Nothing on this show should be considered specific personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of get rich Education LLC, exclusively.   Keith Weinhold  36:38   The preceding program was brought to you by your home for wealth building, get richeducation.com  

Dopamine Daydream (ADHD) - Joe Nardi Original by NAW-T-BOY

Quaranteam - Dave In Dallas: Part 7 What the hell was that? Based on a post by RonanJWilkerson, in 12 parts. Listen to the Podcast at Explicit Novels. The ladies all mingled quietly as they awaited the appearance of the teens. Lupie of course, made extras of the appetizers, plus a few extra finger foods, so the rest of the family wasn't held up for a meal, but Lupie and Mel didn't have to make 'prom dinner' for everyone. At last, they heard footsteps descending the stairs. When the sounds reached the point the stairs peeked beyond the partial wall in the back of the living room, the first thing they spotted was shimmering metallic medium blue cloth that nearly reached the step the foot rested on. Becca's nerd-pale feet and ankles clad in low-heeled strappy sandals was enough to identify her, if they hadn't already known the order the girls were arriving. A bit more intriguing was the amount of her right leg, on the opposite side of her body from the adults, was visible. As she descended, more leg was in view. Each step down exposed more leggy flesh. By the time Rebecca's torso could be seen, it was obvious the skirt of her dress had been slit all the way to her hip. She turned at the last landing before the final three steps. Her short height meant she was fully visible to all as she paused. The dress was very flattering. Spaghetti straps over her shoulders held up the top, and a plunging neckline left no opportunity for a bra. Yet, some miracle of undergarment managed to give her small tits just a hint of cleavage; enough to enhance the femininity of her look on this special night. Small diamond stud earrings completed her ensemble. Becca had been letting her hair grow longer, after learning Dave leaned toward long hair. Her naturally blonde hair reached a few inches past her shoulders when straight. It was a bit shorter than that at the moment as bands of joined hair strands fell in loose curls from her head. As Dave suspected on Becca's descent, the skirt gathered just above Becca's right hip, leaving her entire right leg exposed. "I think someone got the memo that Dave is a leg man." Liv muttered. There was light laughter following the comment, but Dave only had eyes and ears for his date. The first of his dates to arrive. He walked steadily, and slightly spellbound, to meet Becca at the base of the stairs and gave her a gentle kiss on the cheek. Becca was beaming before and after the kiss, though the slight apprehension seemed to disappear during. Dave led her over to the others, clustered around the small bar area Janice had setup. Lupie slipped away to the kitchen after giving Becca a hug and beaming like a proud mother. Well, older sister. Mel handed them each a 'mocktail' before Dave conducted Becca to her seat on one side of his, at the head of the table. He gave her another kiss once she was seated. Then he caught Mel putting away her phone as she cleared her throat. With a quick pat on Becca's hand, Dave slipped away to observe Reena's entrance. Kareena's feet first appeared, clad in white, open-toed wedge heels bearing a black line design on the upper. As she descended, a flowing, forest green skirt came into view, bearing a design done in gold thread. Her midriff was exposed. Her top was made in matching green to her skirt, also bearing tracery in gold thread along its bottom edge and the hem of the quarter sleeves. A green drape, again with designs in gold thread, lay across her shoulders. Medium-sized gold hoop earrings hung from her ears, but her head piece nailed the appearance she was after. One golden chain, bearing alternating clear and red crystals ran down her middle part, with two unadorned gold chains lying to each side. A pendant the size of a silver dollar, made of pearls and red gems fixed in gold dangled from the central chain, resting on her forehead, centered between her eyes and between her hairline and brow line. Her face was supremely confident and demure in equal measure. Dave met her at the base of the stairs, taking her hand gently and kissing her cheek. Then he led her to the cluster of ladies observing the festivities. "That dress is lovely, Reena, dear." Vanessa said. "It's traditional is it not?" "It is. The entire outfit and the skirt are called a lehenga, while the top is a choli, and the drape is a dupatta." The ladies cooed over the garment a bit before Dave escorted Reena to her seat on the other side of the head. After a quick conversation with each lady, he made two small plates with a few appetizers each and placed them in front of his dates. He made a quick plate of his own and took his place at the head, Becca on his right and Reena on his left. Reena's dark hair gathered in a thick braid down her back contrasted with Becca's blonde curls cascading onto her shoulders. Both girls were bubbling over with excitement. The others took turns circulating past and joining the trio's conversation while holding a small paper plate with an appetizer or two, emulating a real prom. When Lupie called Mel in to help plate up the dinner, the rest of the family filed out, after delivering a few hugs. The two cooks brought in the warm plates, each bearing a small steak, mashed potatoes, and a vegetable medley. Lupie gave Becca a quick hug from behind, whispering something in her ear. Whatever it was, it made Becca smile and blush. Mel did the same for Reena, though without the blushing aspect. Dave ate one-handed, though not the same hand the whole time. The girls switched off holding his hand. They generously gave him time to slice up his steak into strips every few minutes. The talk was light, catching up on unshared activities of the past week, mulling desired amenities to be discussed with Vanessa and the rest of the family, 80's and 90's songs the girls had picked up from MTV's renewed format, and so on. Of course, Dave took a few opportunities to complement each of his dates on their hairstyle, the outfits they'd picked out and how it accented some feature or other. The girls were glowing. Keeping his compliments specific was apparently the way to go. Eventually, the three arose, having finished eating several minutes prior. Dave escorted them both, simultaneously, one on each arm, to a couch against one wall of the living room. Initially, they continued their conversation. Janice and Olivia slipped in to clean up the dishes. Mel started up the next playlist, labeled 'Mood Setting'. The songs were chosen to get the celebrants relaxed and enjoying each other's company. The last few songs ramped up the beat. Recognizing a song she'd chosen, Reena leapt to her feet, turned to grab Dave's hand, and drug him out on the 'dance floor'. For the next three songs she danced and hopped, her hands spending most of their time above her shoulders, unless they were draped over Dave's shoulders while she rocked her hips and stared into his eyes. Her braid flipped about as she cavorted. The next song was a slow one. Reena let out a sigh, hugging Dave, her head against his chest. "This is Becca's song. Can you walk me back, and ask her on to the floor? She's getting more confident being here, but you'll need to ask her to dance." Dave kissed her full on the lips, more than a quick peck, but less than a steamy passionate lip-lock. Then he walked her back to the couch where her best friend, his young blonde lover waited. Becca's eyes shone with anticipation as she watched her friend and her man approach, walking casually, loosely, with Reena occasionally leaning in to bounce her shoulder off Dave's arm. He pulled her in for one more kiss, before releasing her to take her seat. Then he took Becca's hand, asking her, "May I have this dance?" Becca giggled. "Of course!" She leapt to her feet, squealing happily when Dave pulled her in for a kiss before leading her out to the open space. Becca's chosen songs were slower, which allowed her to cling to Dave, and gave Dave the kind of dance he was fully prepared for; shuffling his feet and swaying. His lack of skill at rug cutting didn't faze his lovely blonde nerd girl in the least. Holding him close and shuffling fit her needs just fine. He could feel her contentment in the way she held him. In this moment, her world was peaceful and perfect. Becca looked up to stare into Dave's eyes. "Thank you, David. For so much. Everything you've done." Her eyes watered. "I never would have gotten through those first weeks without your help." She swallowed. "Then again through the long months, the three of us together, in two houses. And after; " her voice became too thick to talk. Dave kissed her. She calmed as he held her. "You gave me a new life David. You gave me love. I would never have gone to prom before, but with you, I want all of this." A few songs later, an energetic tune began. Becca looked up to Dave. "Her turn." She gave him a kiss just as Reena tapped Dave on the shoulder. "May I have this dance?" "Certainly." Dave stepped back from Becca and offered her hand he held to Reena. Both teens laughed heartily at the joke. Then Reena stepped in and started dancing with Becca. The young blonde looked a bit surprised, but game to play along on this happy night. The girls danced half the song together, before turning to Dave, who had stepped a short distance away, and pulled him in. The three person dance worked for the remainder of the song but just barely. As that song ended, Dave walked Becca back to the couch before returning to his dark haired lover on the dance floor. Her moves over the next several songs got more daring. A few moves in which her ass was rubbing on his thigh; including the one time she twerked; Dave noticed an odd firmness between Reena's cheeks. For her last song, she'd picked a slow dance. She confirmed to him that this was her last song, not Becca's first. Reena clung to him tightly, partly from exertion, partly for the feel of him against her. "David, I need to be honest with you," Reena said sometime after her breathing steadied. "This dress, the lehenga, it's a special dress. It's not for every party, just special ones, like prom; or a wedding." Dave looked into her eyes as she continued. "Most Indian brides wear red, but my family is from Decca. We wear green for our wedding lehenga. This is the one my mother had made for me. I made sure to bring it when I came here. I'm; I'm not saying you have to marry me, but; this is my declaration. This is where I want to be, for the rest of my life, David. Here, in your arms, sharing life with you." Dave's head spun with the revelation. I mean, damn, this young woman had just pledged herself to him for a lifetime. Granted, the serum made that a reality already, but; damn. "Reena, I; I don't know what to say. I know we've only known each other for a few weeks, but you are deeply embedded in my heart already. I; worry about you and Becca, and Mel and Olivia; bound to me for the rest of your lives; or at least the rest of mine, and then what happens to you? I am glad you are in my life. You bring your own special light to this house, this family. I can't say that I'm in love with you, but I am taken with you; you , not just your body; and I feel that I am moving towards love." Kareena's eyes watered softly as he spoke. When Dave finished, she moved in, offering her lips to him. Dave kissed her slowly and passionately. It took a moment for them to realize the music had stopped. Mel had paused the playlist because Reena's last song had finished, but the two lovers were not yet done. Dave walked Reena back to the couch one last time, and brought Becca out to dance again. Hers were slow dances, but the pace seemed to pick up as they progressed through the set. The last song was of the high energy type that Reena leaned towards. Becca writhed all over him like a stripper on a pole. She was blushing and biting her lip the entire time. She was also smiling; a smile that grew wider when she brushed her ass across Dave's crotch and felt his fully engorged cock straining to get out. She got bolder with that affirmation. Fortunately, the song ended before she escalated to dry humping. "You are wild, and crazy, and wonderful, Rebecca Sampson." Dave kissed her full on the lips, long and slow. There was a definite hunger in her eyes when they broke the kiss. With Becca on one arm, Dave approached Reena. He offered her his other hand and she rose. A beautiful lady on either side, Dave waved to the rest of the family and went upstairs. A few catcalls followed them. Liv even called out "Don't do anything I wouldn't do!" Reena snapped back, laughing "Short list!" All the women laughed at that, with Liv clapping as she joined in. Dave and his young lovers ascended the stairs, turning down the hallway to the 'hotel room'. He opened the door, standing back to let the ladies enter first. He was relieved at what he saw. Or rather, what he didn't see. He'd been a bit worried that Liv would do up the room like a cheesy bachelorette party, with sex themed decorations, and um 'accoutrements'. No such thing was in sight. A foot and a half (half a meter) to the left as he entered was the foot of a full size bed, with its upper left corner nestled in the corner of the room. A small rectangular table just slightly taller than the bed sat against the same wall as the head of the bed, with a second full size bed beyond that, fitting neatly into the corner of the room diagonal from the door. The room was clean and spare, and slightly cozy. Just like a hotel room. Both girls turned to him, hungry and excited. Becca pressed herself against Dave as she pulled his head down for a long, slow kiss that promised a lot more to come. Her hands wandered over his chest, back, and butt, encouraging him to do the same. Dave started with his hands on her shoulders, rubbing down her arms and back up. Then he progressed to her shoulder blades, and her back, tracing his fingertips lightly up and down her spine. Settling his hands at her waist, he slowly brought them around to her front, his thumbs making circles as they lead the way onto her tummy. Becca was neither athletic, nor out of shape. Her tummy was soft and yielding. It was also sensitive, as were her sides. With a twinkle in his eye, Dave let a few strokes land just the way he knew would stimulate her tickle reflex. Becca leapt backwards, letting out a shriek and a giggle. "Must be my turn now." Reena purred. Dave was already erect with the inducements he'd received thus far. The young woman's sultry tones made his cock ache. She pulled herself to him, planting her soft lips on his, darting her tongue briefly into his mouth as an invitation before holding her own lips lightly parted for him. Her full tits pressed firmly into Dave' lower chest as she undulated her hips against him. Then she broke the kiss, sighing. "Hmm, I'd love to keep going, but I did agree to the plan." "Plan?" "Umm-hmm. I got to dance first, she gets to get naked first." Dave turned back to Becca, who was advancing on him again. She rose up to kiss him hungrily, while sliding her hands under his dark brown suitcoat and shoving it off his arms. Not hearing it fall to the ground, or feel it against his legs, Dave surmised Reena had caught it and was putting it somewhere out of the way. Taking his cue, Dave slipped his hands around behind Becca's back, seeking out the zipper on the back of her dress. He found the line of it, and located the pull just as Becca finished unfastening the black buttons of his satiny purple shirt and began pulling the tails out of his pants. He pulled her tight, slowing her actions, as he lowered her zipper unhurriedly. The flash of color on her face told Dave she knew he was stretching this out on purpose. Her look only got more determined as she pulled his shirt down his arms. Dave helped her cause, lowering his arms and folding his thumbs in so the cuffs fell free. He'd already gotten the zipper to its base anyway. Becca stared at him, bit her lip, and shrugged the straps of her shoulders. The dress fell smoothly and quickly to the floor. On her chest, at the sides of her tits, leaving her medium brown areolas and firm nipples exposed, were two foam pads, that adhered to her curves and pushed her modest tits together, forming the bit of cleavage Dave had been admiring all night. "Well ain't technology wonderful?" Dave drawled. Becca giggled. "Wanna take them off?" she said before nibbling her lower lip. "Slowly, please." Dave stepped close, picked her up, and kissed her as he placed her across the bed, on her back. He kissed his way to her jaw as the fingers of his right hand found the top corner of the foam. As he nibbled on the corner of her jaw, he pulled gently, persistently on the pad. It came free with only two flinches on Becca's face. Each one faded as Dave moved the assault of his lips to sensitive parts of Becca's neck. He kept up the distraction of his lips as he removed the foam piece on the left. That one came of easier. Dave moved down to kiss her tits. His kisses and licks brought only moans, so the pad removal seemed to have no ill effects. Dave continued down Becca's body, kissing and suckling as he made his way to her panties. There; wasn't much there. Smaller than a G-string, and the string forming the waist of the panties sat high, obviously, to stay out of view of the slit. The tiny piece of cloth running between her legs just barely managed to cover her privates. If Becca'd left any hair on her pubis, none of it would be under the cloth. Her clit must have been ducking all night just to stay covered. Dave looked up her body to see Becca bushing furiously; and grinning wildly. With his eyes locked on hers, he brought his lips to her gusset and kissed firmly. He felt light moisture as he made contact. Her back arched as he tongued her through the cloth. The panties became sopping wet in short order. Dave slipped his fingers into the string and pulled them down her legs. Becca now lay on the bed crosswise, her hips hanging just off the edge, her toes touching the floor. She lifted her head, and with a lift of her eyebrow and jerk of her head urged Dave to switch his notice to her friend. He kissed the inside of her knee before moving on. Dave took a beaming Reena in his arms. The two lovers fell into a passionate kiss. Dave allowed his hands to roam for a little while, then brought them to her back. He found the ends of the string and pulled slowly on them, untying the knot securing her top. With the tension released from the string in the back, her weighty tits lowered slightly. Reena looked up at Dave adoringly as he lifted her top and freed her tits. She raised her arms as he continued the motion upward. A moment later, she was bare from her navel up. She wrapped her arms behind his neck and kissed him, pressing her lush chest against his firm torso. Dave held her steady as she kicked off her shoes, then did the same himself. When her hands reached for his belt buckle, his sought out the zipper he expected to find at the back of her skirt. It wasn't there. Reena giggled and wiggled her hips. Picking up her cue, Dave sent one hand to each hip, finding a zipper on her right one. The placement made sense as it aided in the taper of the skirt fitting snuggly to her lower torso. He felt his zipper lower and his pants dropped. Her skirt followed shortly thereafter. Her hands went straight to his boxers, pulling them off his hips and shoving them downward. He slipped a finger into each side string of her panties and slowly lowered them. He paused as his arms reached their lowest extent, her panties dangling from his fingers. Reena stood essentially nude before him, though they were too close for him to fully appreciate the sight. Two weeks since her arrival, he had seen it all, but he hoped it never got old, with any of them. Them. Dear God, he had multiple women willing sleeping with him, in full knowledge of the others. And these two. Two teen girls, in some ways so very different, but both just starting down the path of life. And both emphatically dedicated to him. Dave felt the weight of his responsibility to them as thoroughly as he felt elation at their enthusiastic company. And tonight was for celebration, and enthusiasm. He dropped Reena's panties and knelt in front of her. As he leaned in, drawing a breath to fill his nose with her scent, she tapped him on the head. When he looked up, she pointed to Becca, lying on the bed. Right. The plan. He stood and led Reena to the bed, guiding her to lay down beside her friend. Like Becca, Reena lay crosswise, her hips just past the edge of the bed, her feet brushing the floor. Dave knelt before Becca. He placed her legs over his shoulder, grinning at her sharp intake of breath. He kissed her inner thighs, alternating legs and slowly advancing towards her already soaked and flowered open; pussy. Dave took her lower lips in his, suckling on her sex, drawing her juices into his mouth and reveling in her excited squirming. The low, drawn out groan issuing from her throat played soundtrack as he gave her his devotion. When her pleasure plateaued, he switched his attention, driving his tongue into her passage, lapping at her fluids and massaging her walls. His hands held her hips firmly as she bucked, her back bowing, her hands grasping the comforter. Then he moved up, taking her nub between his lips, flicking the end with his tongue and suckling firmly. Becca exploded in ecstasy. Dave noticed signs of arousal from Reena throughout the oral session. Reasonable, given the visual display and the certainty she would soon receive the same attention. He was not prepared for the raven haired Indian teen to curl into a ball and wail her pleasure in unison with the nerdy blonde he was lashing with his tongue. He came up grinning wildly. "Wow, two orgasms with one tongue, that's new." Reena looked at him, startled, confused, a wild look of hunger and pleasure in her eyes. Dave knew how to deal with that. He gently lay Becca's legs onto the bed, leaving her curled in a loose fetal position. Then he slipped over in front of Reena. Settling between her legs, the small black protruding knob peeking out between her butt cheeks confirmed what he'd felt while dancing. As he kissed the inside of her knee, she moaned. "No, no David, no more foreplay. Please get inside me." Dave looked up to see her earnest face and rapacious eyes. He stood, still holding her legs. He held her legs lightly parted, ankles resting on his shoulders. As her approving eyes watched, he stepped in closer, then leaned forward. Dave lined his organ up with Reena's excited sex and pressed forward steadily, his length and girth filling her at a measured pace. "Ho, God, David, Yes! Yes, baby, fuck me, fuck me so good!" Dave stroked in and out of her, slowly at first, then building to the faster, demanding pace he'd come to understand she enjoyed. As his energy built, he moved his hands to the back of her knees. He pushed them forward, pinning them to the bed just below her armpits. The sensation of additional pressure from the plug in her ass was odd, but her pleasure rose rapidly as he nailed her to the mattress, just like she liked it. She sang her approval in howling cries that accompanied the riotous actions of her passage a few minutes later. Becca crested with her. That; Dave could not explain. Granted, his specialty was in the physical sciences, not biological, but this little conundrum was way outside anything he understood about biology. Then again, so was the serum. Could they be linked? After a few minutes of panting recovery, Reena placed a hand on Dave's chest. "David, I know you've noticed; what I've prepared. It's time now. I did some research. I've had two orgasms now, you still haven't climaxed yet. It's perfect timing." "Reena ;” Dave started, hesitantly. Tearfully, she said, "Please David, this is something I want to do. I'm a little surprised at myself, but I want this. I want to feel you back there. I want to give you what I would otherwise be afraid of someone insisting on. I want to be fully and unreservedly yours." "I have no experience with anal. I've looked it up a few times in the past month or so. It's something I'd like to try, eventually. I figured at some point in the future, I'd bring it up with one of you. But it's a new thing for me." Reena's face suddenly glowed. "The future is now, David. We can explore it together." She planted a big kiss on him as she undulated her body against him. Dave slipped one hand down to grope her firm ass, kneading the yielding flesh possessively. Reena's breathing picked up again. "There's a bottle of special lube for anal in the drawer of the nightstand. I asked Janice to put some there, after swearing her to secrecy. She helped me learn what I needed to know for this. Seems librarians know how to find any information you could want." "Especially the naughty ones," Dave quipped. Reena giggled in response. Dave checked the drawer of the table, finding a small lube bottle with labeling declaring it was made thicker than normal to facilitate anal sex. Dave slathered a bit on his cock as he moved back to Reena. With smooth, patient pressure, Dave pulled the plug out of her ass. He applied a bit more lube to the slowly shrinking ring of her gaping anus before setting the capped bottle aside. Dave pressed the head of his cock against her open hole pressing forward. He gradually increased the applied pressure until his head slipped inside. The resulting thrust buried another inch of his cock up her backside before he met resistance. "Huh." Reena voice was guttural. Dave waited for her to adapt. To call for him to back off or continue. "Nice and steady Dave." Dave moved as she asked, adding maybe two inches up her ass every minute as he made small thrusts that were slightly more ins than outs. "Oh, David. It's weird and good. It's a little scary and a little bit of hurt. Please keep going. Steady, just like you're doing." "Should I get more lube?" "No, no, not more lube. Just; slow and steady. It's so different, but I want it. Keep going." Dave continued working himself into her rear entrance until his pelvis compressed her ass cheeks. He held himself there, making small motions, tiny thrusts, small circles, anything he could think of. Reena breathed steadily, giving him short encouragements. Becca turned over to watch. Taking his cues from Reena's reactions, Dave pulled back out slowly, but continuously. When only his head remained within her, he moved forward again. Slow and steady, Dave sawed his cock in and out of Kareena's lovely, tight teen ass. After a few minutes, She called for more lube. Dave added it to both her ring and his cock while he was mostly out of her. A few measured thrusts distributed the lube everywhere it needed to be. "Oh my God. Oh wow, that; that feels good. Fuck, David, I just wanted to give you something special. This, this feels good. Uh. Pick up the pace, lover." Dave began a moderately paced drilling of Reena's forbidden hole. Not enough to make her grunt, but each impact of his hips on her cheeks elicited an exhale from the girl. Initially overwhelmed with concern for her, Dave was getting into it now. His cock was in her ass. It was so tight, so warm, so taboo. Holy shit, this girl was giving him her ass! Unbidden, he picked up his pace. The guttural groan from his lover signaled her approval. Dave slipped one hand from her hip, around her waist, seeking out her sensitive nub. The moment he made contact, a shudder washed through Reena's body, not quite an orgasm, but her accompanying moan was gratifying. Two more small shudders later, and her whole body spasmed, her arms collapsing and her ass clamping down on Dave's half-inserted cock so hard it arrested him mid thrust. Dave held still, waiting for her to ride it out. He rested both hands on her butt, just waiting. And watching. Not just Reena. Becca had again curled herself tighter, shaking and moaning. Reena's fluids dripped from his sack, having squirted on her climax. Becca's wide eyes and the wet spot behind her curled hips indicated she had as well. This was; weird. Maybe he should talk to someone about this? Who though? How would that call go? "Yeah, Vaccine Expert Guy? Look, I'm having sex with one girl and get her to climax, but her friend beside her, that neither of us is touching, also gets one. Any clues how that happened? What's that? You're sending someone to pick me up? Okay, just make sure they bring that lovely white jacket with all the pretty little straps and buckles." In his musing, Dave completely missed Reena's recovery. He snapped back to reality when she grabbed his hand. He caught her eyes, alive with joy, pleasure, and excitement. "Hey stud, let's finish this." "You just came with a cock in your ass. I think we hit peak ass-fucking, girl." Reena and Becca laughed. "No, we haven't, I'm taking a load of your cum right up my back door. Fuck me David, fuck me hard. I am so completely yours." The emotions rippling across her face freed Dave of his renewing worries for her. Dave took hold of Reena's hips, pulling her close as he drove himself to the hilt inside her warm, tight anus. She groaned her approval. He started slow. "Harder, David. Faster. Fuck me like an animal." David picked up the pace, energized by her words and Becca's heavy breathing. The little blonde's nipples were erect, the areolas bumpy with arousal. Taking Reena at her word, Dave got an idea. He reached his right hand up her body, grasping her braid between its center and the base of her skull. Using it like a rein, he pulled her up and into him as he accelerated his thrusting, hammering her ass with savage thrusts. "Hah, Yes," was the last intelligible speech she let out before devolving into grunts, forced exhales, and subvocals of pleasure and arousal. Becca watched, wide-eyed and rubbing herself. Dave felt his peak arriving with the subtlety of a freight train doing 60. He shoved himself deep inside, compressing her ass cheeks just as he erupted. He howled in primal triumph. He was too distracted by his own climax to see Becca shuddering through one as well. Reena he could feel clamping down on his cock again as he fired rope after rope of hot cream deep in her asshole. Reena went limp after her orgasm subsided. Dave lowered her gently to the bed before collapsing to her side. "That was intense." Becca said softly from the other side of Reena. Without the energy to lift his head, Dave looked in the direction of Becca's voice, seeing only Reena's back as he replied. "Yup." Dryly, Becca added "You're gonna have to wash that before touching me with it." Dave and Reena busted out laughing. They all lay there, panting and recovering until Dave levered himself up, heading for the door. "Where are you going?" Reena asked. "Wash my cock. Becca hasn't gotten any yet." "There's wipes in the drawer where the lube was." Dave looked askance. "Is that enough though?" Both girls nodded. After cleaning Reena and himself with the wipes, Dave slumped to the bed between his lovers. The girls had moved to lie 'properly' on the bed. Now all three lay awake, cuddled together, basking in each other's proximity. Presently, Becca rolled closer to Dave, kissing him softly with a hand on his chest. When he only responded with his lips, she took his hand and placed it on her tit. He grinned into the kiss as he fondled her softness. Shortly thereafter, his other hand began stroking her side. He also felt soft kisses on his neck from behind. Signaling Reena to scoot over a bit, Becca rolled Dave onto his back and slipped herself on top of him. Grinning broadly, she rocked her body on top of his as she hovered above him, her small tits dragging along his chest. At the top of each stroke she planted a quick kiss on his lips. The desired effect; his erection; was not long in coming. Becca felt it bump against her backside on her down strokes. She raised herself up, reaching back to grasp his organ and lining him up. Becca sighed contentedly as she impale her sopping wet and very relaxed sex on Dave's stiff meat pole. Then she started riding him. Slowly, eyes fixed on his, shining. This one wasn't a wild fuck. This was making love. Slow, luxurious, wondrous. Reena's kisses moved down Dave's shoulder to his bicep, then across to his pecs. Becca reached a hand to ruffle Reena's hair playfully. Reena moved her kissing target slowly down Dave's side. Then she reached Becca's thigh. Dave watched with anticipation as Becca stiffened slightly when Reena kissed the top of her thigh. The kisses crept up Becca's leg, some on top, some on the inside, as the young blonde's breathing grew rapid. As Reena reached Becca's torso, the nerdy girl leaned back, accommodating the attention she was receiving. She let out a soft moan, telling Dave Reena had reached Becca's navel. She loved getting kissed and tongued on her belly button. Then the Indian teen's head changed angles. Becca's eye flew wide in recognition. She also leaned back further as she kept rocking on Dave's cock. "Oh David, Oh David! She's, she's oh she's going to; Oh! She's On My Clit!" moments later, Becca's inner muscles ran riot on Dave's cock. Reena reached an arm up to keep her blonde friend from toppling backwards. Reena pulled her head out of the way and Becca collapsed on Dave. The dusky skinned girl curled in tight beside Dave and the three passed out. Chapter 9; The Full Dave. October 24, 2020. Dave and his prom dates slept in Saturday morning. As light crawled across their bodies from between the window curtains, the ray of warmth eventually caught Dave's attention, dragging him from Hypnos' arms and back to the waking world. Becca and Reena were both curled tightly against him, one under each arm, their heads resting on his shoulders. All three were nude. Dave felt Becca's modest rises on one side and the lushness of Reena's full tits on the other. In superficial ways, these girls had a lot of differences. Yet both had made a mature decision when faced with little time and an alarming change in the way of the world. Dave really needed to get over his anxieties and honor the commitment the young women had made. That they had reiterated last night. The whole family had pulled together to make last night as special as possible. It was; amazing. As a socially awkward nerd through high school and college, Dave never really expected to attend a dance. And even though he was the only guy present, and it was in; their living room, the whole evening was, well, magical. The attestations of his two youngest partners certainly made the evening special. And then there was the after. What the hell was that? Though, without the weird orgasm wave that happened to his lovers, the sex last night was a-mazing. Anal with Reena. And then Reena went down on Becca; while Becca was riding him! Dave was beginning to think he should be writing some of this down. "Dear Playboy, you'll never believe what happened last night ;” Becca stirred next to him. Not for long. Having been awake for a few minutes now, certain morning needs were making themselves known. Becca snuggling tighter against him signaled he was not going to easily extricate himself anytime soon. He had the choice of easy, and later, or now, but not easy. His bladder was making a decisive argument for now. It took some careful wiggling, but Dave managed to slip out, though both girls were on the verge of waking from his disturbances. Becca was half awake already. Dave found a pair of shorts in his bag, staged there by Jan and Liv, maintaining the appearance the three had checked into a hotel room. He pulled on the shorts and t-shirt and made his way to the bathroom quietly. He was just stepping inside when he heard a voice behind him. "Hey, magic man." Dave turned to see Olivia and Melanie standing in the hallway. Olivia smirking, Mel looking; uncertain. "There's a song about that. One of your mother's favorites, actually. A bit before our time really, but she loved to sing it while staring straight at your dad." "Gross. And don't try to change the subject." "Which is?" "How did you manage to induce orgasms in a woman that wasn't even in the same room with you." Dave stared at her blankly, then blinked. "Uh, once more with clarity?" Mel blushed, fidgeting. "I, uh; I was downstairs in the gym last night. After the dance was over. I was working off; excess energy. All of a sudden, I'm losing my grip on the rowing handle, and my legs feel like water. Now, I like a good workout, but I've never cum from one." Dave just stared for several heartbeats. "You felt that?!" He drew a breath. "Shit, it was weird enough watching both of them climax when I was only touching one." He stepped backwards, swinging the door shut. "I'm willing to finish this conversation, after I attend to business." When he came back out, Mel and Livy were no longer in the hallway. He slipped back into the room to find Becca waiting, mostly awake, and Reena stirring. Dave gave each young lady soft kisses to ease their introduction to the day. Smiles and stretches greeted his efforts. Reena wrapped her arms around his neck and pulled him in for a longer kiss. Then she relaxed her grip, opening the distance between them to gaze into his eyes. "I love you, David." Dave was shocked. Becca, similarly shocked, recovered faster. "Oh shit," she said. "You beat me to it." Dave looked at his young blonde lover. "It's not a competition, Rebecca. You are dear to me, and I know you feel the same." He turned his attention back to the young lady currently pressing her sizable tits against his stomach. He stared into her liquid brown eyes, shining with emotion and certainty. "Kareena; I've rushed into saying those words before. I; " "I'm not asking you to say those words back to me, David. I can see it in your eyes, and feel it in your arms around me. That's what I need. You give me what I need, and that's why I feel safe saying those words." No words came to Dave that were equal to the moment, so he held her close, resting his cheek on top of her head as she nuzzled into his chest. Until her stomach growled; and then his replied in kind. The teens dressed, Dave watching and appreciating the show. Reena noticed first and threw a little extra something in her movements. Becca caught on quickly, wiggling her ass as she pulled a pair of green cotton shorts over her pale blue thong. Dressed, they left the room and headed downstairs to meet the rest of the family gathering around the dining room table, laying out breakfast. This being a Saturday, everyone was home. Reena and Becca split up, each working their way around the room, giving each woman a tight, meaningful hug that lasted more than just a quick grasp. There were a few quiet statements of "You're welcome, dear." Jan, beaming brought a plate from the stove over to Dave. "Over medium, just like you like them." There was a slight nervousness in her smile. "Thank you, Jan." Dave received the plate with a grateful smile and motioned her closer. He gave her a firm, lingering kiss. Jan blushed, then turned to get her own plate. Dave piled a big helping of hashbrowns on his plate beside the eggs before adding bacon. He dug in with gusto, listening to the light-hearted conversations passing amongst his partners. Smiles and happy tones wafted about the table. As the meal wound down, Dave spoke up. "Esme, please take Roscoe out back and play with him for a while. He needs a bit of exercise." "Are you calling my dog fat?" Liv asked mockingly. "He's going to get antsy cooped up in the house all day and as social as he is, he ought to have company." "It's fine, Aunt Livy," Esme said. "I like playing with Roscoe. He's fun." "Thank you, Esme," Dave said. As she passed by his chair, he pulled her close and kissed her forehead. After Esme headed upstairs to find the large canine and his leash, Dave addressed the rest of the family. "Let's all gather in the living room, please." "Okay," Lupie said cautiously, "can we get the kitchen and dining room cleaned up first or is it urgent?" "Depends," Dave rejoined cheekily, "on if I get to participate in the cleanup." Lupie narrowed her eyes and stared at him. Dave relented first. "Okay, okay, no point in letting food harden on the dishes, it's not that urgent." Dave chuckled as he acquiesced. Jan and Lupie, having made breakfast, were exempted from cleaning and joined Dave in the living room immediately. Shawna and Nessa waved the younger four off and took care of the morning cleanup. Six women made their way to seats in the living room, along with Dave. They shared perfunctory conversations about their plans for the day. Aside from the Belsus Grand Prix, of course. That was due to start shortly after lunch. "Okay, Dave, what's up?" Shawna asked as she and Nessa joined the others. Suddenly, Dave looked uncomfortable again. "Well, first, I just want to convey my gratitude to each of you for last night. Ya'll did an amazing job. I enjoyed the evening, and I'm sure Becca and Reena did as well." "Hmm," Shawna began with a wicked grin, "I'm sure the young ladies' enjoyment had more to do with events we were not a party to." The others snickering elevated to a few guffaws when Reena and Becca blushed. Then Becca spoke up. "No, seriously, last night was wonderful and I want to thank all of you for putting it on. You are each so special to me, and for you to do all of that; I can't thank you enough." Reena hugged her bestie and nodded. "I haven't been here as long as the others, but for myself, it was a treat to be able to give you that special night." Vanessa said. The nods of the others added their agreement. "Well, the thing is; uh, wow, I swore I wasn't going to discuss details about each of you with each other, but this is kind of a unique circumstance. And well, I probably should be the one to describe it, since I was the only one; external to the situation." "I was there, you were not external." Reena's rejoinder garnered another round of giggling. Dave blushed, then closed his eyes, shaking his head. "Look, here's the thing, while we were; intimate, uh, I mean, I would be; giving attention to Becca, and as she; climaxed, so did Reena; and I wasn't touching Reena." "Let your fingers do the walkin' did ya?" Nessa teased. "Actually, no, I was enjoying just watching," Reena said quietly. That got the other's attention. "And it kept happening all night. Every time I brought one to climax, both of them peaked." "Yep, even when Dave was in my butt, Becca hit the high notes with me when I got there; which I didn't even expect to happen." "Well, they said whenever the guy cums, we would too, no matter where he was," Nessa offered. "No, I mean; sure yeah, that happened too; but I wasn't expecting to actually enjoy it. I just wanted to give Dave something special. I didn't think it would feel so good." "Neither did I," Becca added. All of the ladies looked pensive for a bit. Shawna was the first to speak. "You're saying that the girls climaxed together, no matter who you were touching?" Dave just nodded. "Lemme tell ya, it was one heck of a bonding experience," Reena added. "I'll bet." Quiet reigned again. "You gave him your ass?" Olivia grumped. Reena nodded, hesitantly. "Damn it, they beat us to it," Liv said, looking at Mel. "Guess that just leaves threesome as the only remaining first." When Becca looked at Reena side-eyed and Reena looked at the ceiling with a suppressed grin and a slight reddening of her cheeks, Liv's eyes flared. "Oh hell no, you little sluts did that too?" "I'll gladly be Dave's little slut," Becca replied. Reena inhaled, puffing out her chest. "The smell of your jealousy is delicious." Liv threw a pillow. Vanessa and Shawna laughed. "Now hold on, the two of them in the same room taking turns with him ain't the same as a threesome." "Oh, we know." Reena replied. Even with her darker skin, the blush in her cheeks was notable. Dave sat there with a wry grin on his face, not saying a word. "Are we embarrassing you Dave?" "Nope. I was there when it happened and this conversation still makes me feel like I fell into the Twilight Zone," Dave chuckled. "My brain keeps trying to make sense of everything that's happened, while my cock keeps saying 'Dude, shut up! Hot women are happily fucking us!'" That earned several chuckles. Then, the women shared looks, a certain gleam in their eyes. Almost as one, the women rose from their seats and approached Dave. It could have engendered a sense of foreboding, but he knew these women too well to think they had any ill intent. They encircled Dave, taking turns slowly kissing him. Lips on his, more lips on his ears, yet more on his shirt covered chest. Hands stroked his body, avoiding his cock; barely. Fingers played in his hair. Soft moans from Dave and each of the ladies of his house lightly covered over the heavy breathing. A loud bark from Roscoe, just outside the door, threw a bucket of cold water on the proceedings. Chagrined, the women drifted back to their seats. Dave took a shuddering breath and adjusted himself. "We need to keep the Esme rule in mind," Dave said levelly. "No one mounted you, and you were in a recliner, not on the couch," Mel replied. "The letter of the rule might not have been violated, but the spirit got shot so full of holes it'd whistle in a good wind. In four-part harmony, with reverb." "I was as much a part of instigating that as anyone," Lupie interjected. "But yes, we need to be careful. There's so much sexual innuendo everywhere these days, we don't need to give her a live demo." "With her own mother in a starring role." Lupie blanched at Dave's reply. "Getting back to the topic at hand; it was strange enough that Reena and Becca were climaxing sympathetically. At least they could see what was happening, they were in the same room together. This morning; Mel, why don't you take this part?" "Yeah, uh, as I was telling Dave this morning that, um, last night, I was working out in the gym room. On the rower. Well, all of the sudden I; had an orgasm. Mid-stroke. I had no idea what was going on, but I nearly fell off the rower. It was weird enough that I called it quits for the night and cleaned up the gym, heading to bed. On my way up the stairs, another one hit. I caught myself with my hands, so I didn't stumble too hard, but that was; really weird. Since the gym is almost directly below the room they were in, and the stairs run up right beside it, and given what happened in the room, they have to be linked." Silence settled on the room again. "Wow, so, some kind of shared orgasm, with a broadcast range?" Nessa asked. "Looks like it. I have no idea how, but that's what appears to have happened." "We didn't feel anything like that in the master bedroom. This is something we should report David." Shawna was in full on science mode. "They may already know about it, and can tell us why, or maybe they don't and the researchers need to find out what caused this. Either way, it has to be the serum doing it." "Agreed. It didn't happen to us before, so let's work through possible variables before we call." "Okay," Shawna said, staring into space and beginning to count off on her fingers, "One; your first partner arrived roughly seven weeks ago. Two; you've just reached eight partners. Three; it was a special night, so maybe something about the hormones of being that happy?" "All those sound reasonable. It was also the first threesome." Dave replied. "Anybody else?" "You two are the scientists," Lupie commented. "And both of us specialize in the physical sciences, not squishy stuff," Dave replied. "Don't sell yourself short baby," Shawna rebounded, "you're quite good with our squishy stuff." The women all laughed as Dave blushed again, his eyes wide and his mouth scrunched tight. With a grin. "Okay, so I'll call the Vax Center to tell them what happened. Assuming they don't haul me away in a padded van, we'll do the Mario Kart tournament this afternoon." "And movies afterward!" Reena exclaimed. "Sounds good to me," Shawna replied. "What are we watchin'?" The person at the Vax Center sounded like Dave's report was the first time they'd heard of this happening. They also sounded like they were no longer surprised by weird effects of the vaccine. So no padded van. Dave made it to the semifinal rounds but got knocked out by Olivia. She shot him with a spread of green shells right before the finish line and crossed ahead of him to seal her spot in the finals. In a playful whine he cried out "I thought you loved me!" His pouty lip drew laughter from the rest of the house, but only a tongue sticking out from his college age paramour. "All's fair in love and Mario Kart!" Livy proudly proclaimed. Dave managed to notice the extra, conciliatory bounce she gave to her tits as she laughed. Watching those big pec pillows jostling under her shirt did have an ameliorating effect. Doubly so since he had gotten intimately familiar with said fun bags. Dave took a moment to savor the mental image of Livy's lush, full tits, free of her bra, jostling back and forth, her medium brown areolas and thick nipples hopping like the bouncing ball in a sing along video while he pounded into her rapidly as they neared a mutual climax. Well, double for her, as Dave generally worked to get the lady there for real at least once before he allowed himself to let loose. And that was for quickies. If they had more time he never let himself release before she'd gotten three. Granted, that was getting a bit more difficult when he was juggling the needs of eight women. Dave shook himself back to reality. A couple of the ladies were smirking. Others were studiously looking away. Reena offered a high-five to Olivia. "Daydream score!" Reena cried out as the college girl accepted the congratulations of the recent high school grad. Both busty ladies laughed. A bit of shuffling ensued as everyone made space for Liv, Mel, Esme, and Shawna to take prime playing spots for the final game round. Spacing had gotten easier over the past few rounds as Lupie and Jan were eliminated and headed to the kitchen to start a movie night friendly meal. They hadn't told anyone what they were making, but no one had asked either. The smells were getting yummy though. Nessa decided to slip away to see if she could offer any help. Esme once again played Liv and Mel against each other. For one lap. Then all three noticed Shawna was well ahead of all of them. Then an all-out slaughter ensued as the three jostled each other, trying to surge ahead and battle with Shawna. Each one prayed for a blue shell, but none manifested. Esme finally got a lightning bolt, but miniaturized Princess Peach sailed across the finish line with room to spare. "How did you do that?" Reena cried incredulously. "I mean, you're this put together professional woman. How'd you get so good at Mario Kart?" "Professional scientist," Shawna replied. "How's that not set off your nerd alert? I was playing Mario Kart when it was 16 bit," she ended with a smirk. "Okay, hipster." Reena giggled back. Dave stepped close to Shawna, singing "This is how we do it ;” Together they started dancing, though Shawna clearly knew how, and Dave; not so much. He danced more like a caricature of a middle aged man breaking out old 90's moves in a dance club. The dance quickly morphed into a kiss that bounded between chaste and passionate. "Aw, it's so cute watching nerds in love." The two lovers laughed, breaking the kiss, and rested their foreheads together. "The table is all set," Lupie announced. "Make your plates and find a spot for the movie." There was a slight waver in her voice on the last part. Lupie was still adjusting to folks eating in the living room. Something she never allowed in her house, though when she went over to a family member's house for a big gathering, they all did it. She was making baby steps. They had plenty of evening and night left, and probably two movies before it was reasonable to send Esme to bed. First up was Inside Out, which Esme hadn't yet watched, and loved. Dave put away the disc after the movie ended. Reena took the lull to speak up. "How about we watch something streaming next? Maybe, The Babysitter?" "Are you nuts girl?" Shawna asked. "How 'bout we watch something that won't keep Esme from sleeping for a month?" Lupie, unfamiliar with the movie, took on a worried look. "That bad?" "Bad enough I'm not even going to describe it with her around. And She would never look at Becca the same again." Reena snorted. "To be fair, Becca is in a sort of cult now, with a much different sacrificial totem!" "Ha. Ha, ha. ha." Dave replied. Jan, seated beside Dave because it was her turn, chuckled while clutching his bicep and nestling her head on his shoulder. "Oh! How about The Mummy? The Brendan Fraser one, not Tom Cruise," Becca said from her seat on the floor between Dave's legs. Not doing anything frisky, that was understood, but often Becca or Reena; and occasionally Livy; sat there for family movie time. "Hmm, good movie, not sure if we should with Esme out here. Lupie?" "She's probably old enough now." Esme loved the movie. Almost as much as she loved Becca imitating the "I; am a librarian!" line, complete with a flop into Jan's lap. Everyone got a good laugh out of it; including Jan, who rolled her eyes as she did. October 25, 2020. Dave joined Lupie in the library for the Bible study she hosted for Becca and Reena. Originally, it was just Lupie by herself, but Becca had once shared a church with Lupie, and quickly asked to sit in with her. Recalling that Reena had mentioned church attendance in the past, Becca invited her to come as well. With his appearance this week, Dave made four. Lupie started with a prayer of invocation. When she finished, she gave Dave a shy smile. "We usually sing a few songs next." She bit her lip. "Just, please don't judge." Dave scowled, "Of course not." Then he softened his look. "That would be doubly inappropriate. People who give others grief for singing badly in church forgot the point of singing in church. And then there's the whole 'building your partner up' being violated like crazy if I gave you grief about your singing. I seem to recall there are a few verses in the Bible that have something to say against that." That earned another shy grin from Lupie, who then nodded to Becca. She and Reena launched into a song, obviously, they had planned ahead. As the first lyrics ushered forth, Dave recognized it and joined in. He closed his eyes and felt the meaning of the song, adding his own voice to the harmony. I will not forget you, you are my God, my King and with a thankful heart I bring my offering and my sacrifice is, not what you can give but what I alone can give to you! Dave finally re-opened his eyes, primarily to catch the cue for when the girls would start the second verse. He noted the eyes on him. Not exactly impressed, but surprised. Maybe they had expected him to just add a mumbling bass, but Dave had never been that guy. After two more songs, Lupie delivered her prepared lesson. They closed with another prayer. As each picked up their Bible to leave, Lupie tapped Dave on the shoulder. "The girls and I have talked about rotating who would give the lesson. They both agreed in principle, but didn't feel quite ready to actually do it. I think they feel uncomfortable taking the position of a moral authority. Do you think you could take the next lesson?" Dave caught his breath. It was one hell of an 'Oh by the way request'. It was also entirely reasonable. And honestly, it was his duty to either take on the role, or at least share it. "Sure. Maybe I can come up with something that will ease them in the right direction; or nudge them. I'm not quite sure which is more appropriate at the moment." To be continued in part 8, Based on a post by RonanJWilkerson, in 12 parts, for Literotica.

Keith discusses the Federal Trade Commission's (FTC) new regulations on rental pricing transparency, following a settlement with Greystar.  Legendary author, Doug Casey, joins the conversation to argue that the Federal Reserve is waging a quiet war on the middle class.  Casey explains that by creating trillions of new fiat dollars to push interest rates lower, the Fed fuels inflation, which erodes savings, distorts markets, and quietly reduces the average American's standard of living. He warns of an impending economic downturn due to inflation and government debt. Resources: Find the FTC article here. Visit internationalman.com to read Doug Casey's weekly articles and watch his "Doug Casey's Take" videos on YouTube. Episode Page: GetRichEducation.com/585 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com GRE Free Investment Coaching: GREinvestmentcoach.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  For predictable 10-12% quarterly returns, visit FreedomFamilyInvestments.com/GRE or text  1-937-795-8989 to speak with a freedom coach 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— GREletter.com or text 'GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript: Keith Weinhold  0:01   welcome to GRE. I'm your host. Keith Weinhold, the Fed keeps escalating their quiet war against the middle class. I'm talking about it with one of the most influential financial figures of the past century. Today, also what the recent FTC decision on rents means to real estate on get rich education.   Speaker 1  0:25   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 rights for both Forbes and Rich Dad advisors, and delivers a new show every week since 2014 there's been millions of listener downloads of 188 world nations. He has a list show guests include top selling personal finance author Robert Kiyosaki. Get rich education can be heard on every podcast platform, plus it has its own dedicated Apple and Android listener phone apps build wealth on the go with the get rich education podcast. Sign up now for the get rich education podcast, or visit get rich education.com   Corey Coates  1:11   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  1:27   Welcome to GRE I'm your host. Keith Weinhold, let's get right into it, as there's a lot to cover here on our last big show before Christmas. Briefly before we get to the Fed's quiet war against the middle class the Federal Trade Commission just fired off a warning shot to landlords, and here's the translation about what this means to you, advertise your real all in rent amount with mandatory fees included in that amount or expect company and by company, the FTC means attorneys, paperwork and a long headache, and I'll tell you why I think this is a good thing. But really, first what this is all about is that it stems from the antecedent settlement with the massive global real estate company greystar, about transparent pricing. You might know that greystar is the massive global real estate company. They specialize in rental housing. In fact, greystar is the largest apartment operator in the entire US. They're in about 250 markets. The FTC cracked down on greystars add on fees, those fees added on to the rent amount that aren't clear and transparent right from the beginning. Now, in their case, it's things like Package Concierge charges, valet, trash service fees and some of these other line items that magically appear after a renter has already emotionally moved into a unit. Now for your rentals, they might be other things like Pest Control fees, gym fees, pet fees, utility add ons and notice that I use the word might, because clarification is still being sought here, but suffice to say, the least that you should know is really three things, advertise a rental price that excludes mandatory charges and that could be a violation of the law. So then state the total cost of renting the unit up front, no fine print gymnastics. Secondly, do a compliance check. You need to review your ads to confirm that they honestly convey your rental unit's price. That includes working with third party marketing vendors like Zillow or Facebook marketplace to see if they accurately state the all in price, because if they understate the price, it's still your problem. And thirdly, know that the FTC is reviewing harmful practices in the rental housing market. They'll take action against landlords that try to hide mandatory fees, so no hide and seek. And the FTC resource is in our show notes, and I sent it to you in last week's newsletter as well, if you want to read it, all my take here is that this type of transparency is a good thing. I mean, come on, we all know how annoying it is if, say, an airline states like, Hey, we've got prices to this destination. You can fly there for as low as $200 Yeah, but what if it's a 28 hour, four layover journey to fly 300 miles? Okay? What about buying an event ticket to go to a music concert and say you've already got 10 minutes wrapped up in this, but they don't show you the final price with all the fees until you've already invested that 10 minutes a. Then you learn about this in your shopping cart. So that type of thing is deceptive, all right. Well, what this FTC case does is it eliminates that effect in the rental housing market. So if you're a landlord, your competitors shouldn't be able to advertise base rents minus fees against your unit that appears higher priced than it's really not. And then for renters, I mean, the clarity helps expedite their search process. So this lets good assets compete on real value, and that is good business. Now, as far as the Fed controlling the economy, Jerome Powell announced interest rate cuts both last year and some more again this year, and though the effect isn't immediate, mortgage rates do come down with them. Mortgage rates have also fallen this year because the yield spread premium is lower. And you know what the prevailing sentiment is among a lot of armchair economists, it is squarely this, you ain't seen nothing for cuts yet. People say, Oh, watch, once Trump gets his guy in there in May, meaning that's when the newly appointed Fed chair is in power. Oh, you're really going to see some giant rate cuts then, yeah. I mean, a lot of people talk about this like it's certainly coming. They say then the Fed funds rate is going to go way down, meaning mortgage rates are then going to go way down, meaning that home prices are therefore going to soar next year. Well, all that could happen, but it is nowhere close to the certainty camp for everything to respond exactly that way. As you know, as a listener here, paradoxically, mortgage rates have little to do with home prices. Look at history over hunches. In fact, it might be more likely that those things don't happen and don't all break exactly that way, then the probability that they do, and that quickly gets into conjecture territory. As we know, lowering rates is bad too, because it signals that a weak economy needs the help. Typically. What could be different this next time. Well, whether we're in a good or a bad economy, Trump still wants lower rates, and he really imposes his will on the situation.    Keith Weinhold  7:30   We're about to bring in the author of a new book called The preparation. It's about preparing for the economic future. A lot of the book is mostly for young men and their parents, but we'll speak to both females and males. Today is the middle class both worse off and in a way, better off today than they were a generation or two ago. Talk to your grandparents. They didn't pay for a college education. They didn't get one. They rarely ate out at restaurants. They didn't have a smartphone, which is now practically mandatory to even exist. Today, people are paying for all of that, so no wonder that prospective first time homebuyers almost seem to be going extinct. Let's meet this week's guest.   Keith Weinhold  8:21   Are we going to get a painful financial reset in the form of runaway inflation, a market crash or something else? We'll answer that before we're done today, the Fed is engaged in a quiet war against the middle class. They are going to create trillions more Fiat dollars to lower interest rates further and create inflation that's according to today's guest. He is the International man himself, a legendary and generationally popular author, and he does a lot more than that. He's back with us for a sobering look at this today. Hey, welcome in. Doug Casey,   Doug Casey  8:57   Thanks, Keith. It's nice to be here with you, although care for me is in Buenos Aires, Argentina, where I spend a good part of the year.   Keith Weinhold  9:05   Such a nice place, good year round weather. There. A piece you recently wrote is titled, The Fed's quiet war against the middle class. The Fed recently announced that they're stopping Qt, which basically means they're stopping the destruction of dollars and opening the floodgates to print dollars. You've been known to say that the level of interest rates is the most important single indicator of an economy, and the Fed has made several quarter point cuts over the last year plus, although the President is supposed to stay independent of Fed influence. Oh my gosh, he has been more vocal than any other president ever over how badly he wants low rates. What are your thoughts with regard to all this Doug?   Doug Casey  9:53   Well, the Fed, which most people have been taught to believe, is part of the cosmic firmament. Right? It should be abolished. It serves no useful purpose. The Fed is an engine of inflation. It's what creates Federal Reserve notes. It's an engine of inflation and purely destructive, and it's used by the government to finance itself. So that's the first thing I've got to say. And they don't know what interest rates should be. Neither does Trump neither does anybody else. That's for the market to determine right and interest rates are set by the amount of savings that's done by the people and the amount of borrowing that's done by other people. The problem is with the Fed printing up lots and lots of money, which they are through the banking system, it makes it rather foolish to be a saver. In other words, if you produce more than you consume, which is something everybody should do, you want to save the difference. That's how you become wealthy. But if they destroy the currency with inflation, it's pointless to save, and if there's no savings, there's no capital to lend. This is why we're sliding off a slippery slope in the direction of a third world country where there's no savings, where the money's no good, it's a real problem. I think the average American, despite increases in technology that we've benefited from over many years, the average American has found his standard of living go down a lot, and it's basically because of the destruction of the currency that makes it impossible for him to save and get ahead of things, and results in wild and crazy moves in the stock markets and the real estate markets and the interest rate markets, where things become unpredictable. So everybody's being turned into a speculator, whether they like it or not, and frankly, we're headed towards a real reckoning in the US and in the world generally. So my approach at this point is to hold on to your hat, because we're in for rough running in the years   Keith Weinhold  12:14   to come. To create low rates, the Fed basically needs to create trillions of new Fiat dollars. Tell us about how that works.   Doug Casey  12:25   Well, it's a question of the supply and demand of money. You've got two things happening. Number one, when the Fed has quantitative easing, as they call it, which basically means inflating the dollar. Quantitative easing, or QE is just a nice word for inflating the dollar. They're increasing the supply of dollars out there. You increase the supply of dollars, the price of money goes down in the short run, but in the long run, the value of the dollar also goes down. And nobody's going to lend money if they can't get more in interest than it's being depreciated at. So you've got these two forces fighting against each other making for an unstable system. That's why I say that look before 1933 and when Roosevelt took gold out of the dollar, or in fact, before 1913 when the Federal Reserve was created, before that, there was no central bank. There was no Federal Reserve in the US. Money was just a medium of exchange and a store of value. It wasn't a political commodity, which it is now. Today, everybody is looking at the government to do something to make a decision to raise rates. Some people want them higher or lower them. Some people want them lower. But this is for the market to decide. It shouldn't be a political decision.   Keith Weinhold  13:53   Low rates, which most think are coming, produce an inflationary environment, which then means that longer term, there need to be new higher rates in order to combat that.   Doug Casey  14:05   Well, what we've got is a situation where conflicting advice and beliefs are causing rates, and indeed, most of the economy, to go up and down like an elevator with a lunatic at the controls. And actually, that's a very good analogy.   Keith Weinhold  14:22   And low rates to your earlier point, Doug, they don't encourage anyone to save. And you know what? Government policy doesn't encourage anyone to save either in times of crisis, like, look what happened during covid. Oh my gosh, if these people can't go to work and generate an income, they don't have any savings, obviously. So then let's go ahead and intervene even more and send them stimulus checks, basically a bailout. So low rates discourage anyone from saving, but so does our policy, because every time there's a big catastrophe, oh, they just come in with a safety net anyway. That's Part. The reason why we have such a problem with capital formation of the average American today?   Doug Casey  15:04   Well, it's actually worse than that, because over generations, a lot of debt has built up in the country. In other words, to maintain your standard of living, a lot of people have borrowed. They've done this either by taking the savings of past generations and borrowing it or mortgaging their personal futures. Either way, look, if you and I went out and borrowed a million dollars today, we could raise our standard of living artificially, sure, for the next year, but at the end of that year, we have to pay back the million dollars to lost interest, and that artificial rise in our standard of living will result in a very real decline in our standard of living. And a great deal of the borrowing that's been done to stimulate the economy through the banking system is for consumption, not for production. In other words, a lot of the borrowing is not to create new technologies and new infrastructure and new capital goods to create more wealth. A lot of it's just stuff that you wind up. People are borrowing things to fill their basements and their garages with more junk, consumer borrowing, borrowing for vacations, borrowing for to go to music, shows, all kinds of things. This has become a habit in the US, right? So let's look. It's going to end very badly. It's going to end and is ending as we speak, actually, in what I call the greater depression. It's going to be what we're looking at here, largely because of monetary manipulation, but also because taxes have gone up, up, up, up from zero level. Basically, in 1913 there were no income taxes in the US, the US government lived exclusively on minimal tariffs and excise duties. But today, there's right and they're very high, high levels of inflation, high levels of borrowing. So I think we're coming to the end of the road, as far as that's concerned. And it's bad news. Of course, most of the real wealth in the world, when you have a financial collapse, when you have a depression, most of the real wealth still exists. It just changes ownership, that's all so you want to position yourself so that you're not too adversely affected by what's coming   Keith Weinhold  17:31   this inflation and more coming inflation pumping up the asset values of the asset owners and then ruining the lifestyles of those in the lower middle class and making them trend down lower since they spend a greater proportion of their income on everyday needs like clothing and food, which is a small proportion of people that are well off and the poor don't have the assets to benefit from that inflation. And you know, Doug, it wasn't until I read your recent article that I realized something that initially the fed only had one mandate, price stability, and then later they added that maximum employment was their second mandate. I didn't realize that. So really, it's been an expansion of what they're paying attention to, and a de facto expansion of their powers and influence and control.   Doug Casey  18:23   Well, actually, they have a third mandate now, which is to control long term interest rates, to prop up the mortgage market, to prop up the real estate market. Because, as you know, the real estate market floats on a sea of debt, and if you can't get a mortgage, if you can't borrow, you can't buy real estate, or, for that matter, you can't sell it. So this makes it a very unstable situation, and most people are unaware of the fact that before the last depression, the longest mortgage you could get was five years, and that was with a 20% down payment. So things have changed a lot since then, and the more debt you use to finance anything, the more unstable things become. And the fact that things have become so unstable, and the average guy's standard of living has been sinking, and he has more credit card debt, more mortgage debt, more automobile debt. Used to be paid cash for a car, then was financed for two years and five and seven, and then it was leased where you never even owned it. I mean, this is, this is a trend that's coming to an end at this point, so it's going to be quite a comeuppance for people.   Keith Weinhold  19:42   I think long term financing and the easing of getting financing makes the cost of anything higher. There's probably no greater example than that of what has happened with college tuition over the decades. But you know Doug, when we talk about this centrally planned economy. Rather than letting free market forces take over, I love it. I just absolutely love it when the answer to a problem is actually doing less than what you're currently doing, let go of the reins, rather than the Fed controlling interest rates. If there were a free market doing it, you would have bank loan rates that couldn't become too high, or else they wouldn't attract borrowers. So rates would naturally fall, and then you also couldn't have bank loan rates that are too low, because you've got to compensate the bank for bad borrower risk. So rates would come up, and they would find some natural level, kind of to the point that you made earlier. There would be a natural set point price discovery. That's how I think of a free market working for interest rates rather than announcements by a Fed chair.   Doug Casey  20:51   Well, you're right. The problem is that the high government officials, the elite, if you would, think they know best and try to manipulate things, but they don't know best, quite frankly. And one other comment that you made, which I think is very appropriate, is college tuitions. For years, I've recommended that young people forget about college. It's a huge misallocation of your time and money, you wind up studying things well after you are through partying and drinking and chasing the opposite sex, and the things you learn about have no practical application in the world. And I'm not talking about learning history and the classics and mathematics and science, okay? Those are valuable things. Most of what people are taking in college today are hobby subjects, if you would, or things that are fun to learn in your spare time, but you shouldn't burden yourself with a lifetime of debt to do those things and get a worthless degree. Everybody has a degree and with grade inflation, they're a waste of time. That's listen. That's why I wrote this book with Matt Smith. Is my podcast. It's called the preparation. It's on Amazon, and it explains talking about your standard of living, which is what this is all about, really, why it's foolish to go to college today and exactly what especially a young man should do, instead of misallocating The four most valuable vibrant years of his life, sitting behind a desk listening to Marxist leaning professors corrupt you with all kinds of really bad ideas. So that's why we wrote the preparation. And it tells young men exactly what they should do, instead of burdening themselves under hundreds of 1000s of dollars of debt, which can't be discharged and serves no useful purpose, what they've learned in exchange for it. So, I mean, this is one of the one of the things that people should be doing, but not enough are.   Keith Weinhold  23:07   AI changes things fast. I mean, for a four year college graduate today, what you learned as a freshman three or four years ago could quickly be outdated, and that effect just wasn't nearly as great as it was a few decades ago, but if you're listening in the audio only, Doug just held his book called The preparation, which he co authored with Matthew Smith. If this way of thinking resonates with you, here's some actionable things that you can actually do. You're listening to get rich education. Our guest is international man. Doug Casey, when we come back, I'm your host. Keith Weinhold   Keith Weinhold  23:41   you know, most people think they're playing it safe with their liquid money, but they're actually losing savings accounts and bonds don't keep up when true inflation eats six or 7% of your wealth. Every single year, I invest my liquidity with FFI freedom family investments in their flagship program. Why fixed 10 to 12% returns have been predictable and paid quarterly. There's real world security backed by needs based real estate like affordable housing, Senior Living and health care. Ask about the freedom flagship program. When you speak to a freedom coach there, and that's just one part of their family of products, they've got workshops, webinars and seminars designed to educate you before you invest. Start with as little as 25k and finally, get your money working as hard as you do. Get started at Freedom family investments.com/gre, or send a text. Now it's one, 937, 795, 8989. Yep, text their freedom coach directly again. 1-937-795-8989   Keith Weinhold  24:52   the same place where I get my own mortgage loans is where you can get yours. Ridge lending group and MLS, 420, Five, six, they provided our listeners with more loans than anyone because they specialize in income properties. They help you build a long term plan for growing your real estate empire with leverage. Start your prequel and even chat with President Caeli Ridge personally, while it's on your mind, start at Ridge lending group.com that's Ridge lending group.com.    Robert Helms  25:23   Hi everybody. t's Robert Allens of the real estate guys radio program. So glad you found Keith Weinhold and get rich education. Don't quit your Daydream.   Keith Weinhold  25:34   Steve, welcome back to get rich Education. I'm your host, Keith Weinhold, we're talking with Doug Casey about how the Fed is quietly intervening and hollowing out the middle class when it comes to interest rates. Since you state about them being the most important indicator for an economy, I think a lot of people don't realize Doug, and maybe you run into this too, that interest rates are not high today. I mean, on the long run, the Fed funds rate averages 4.6% and today it's in the high threes. So they're not actually high today. But with all these crises where we had all this money printing in these low rates, they feel high, but they're not.   Doug Casey  26:22   Well, you're quite correct. The question is, at what rate is the dollar losing value? The official US government figures say, Well, I don't know what they say. They vary, and the numbers are jumbled. And I think the general price level in the US, if we were realistic, is going up well over 5% probably closer to 10% you can make that case. Yeah, I think so, because I'm talking to you now from Argentina and for years, the figures were notoriously and outrageously concocted, made up to make people think things weren't as bad as they are. And here in Argentina, we've just had a revolution, actually a peaceful revolution, with replacing the Peronist government with a man named Javier Malay. It's probably the most unusual and most important election, believe it or not, in world history, because Malay was elected here in Argentina on the platform of basically getting rid of the government disbanding it. In other words, Elon Musk's Doge, but on steroids times 10, and things have gotten a lot better here because of that. And it's too bad that Doge has been eliminated in the US, because a lot of people don't understand that the government doesn't really produce anything at all. All it does is take taxes from you and pass that money around to other people with a lot skimmed off the top to do things that entrepreneurs would probably, or certainly, I'd say, do by themselves, and they make it worse by printing up money to give to people to do those things, and borrowing money, which acts as an albatross around everybody's neck. So I'd make the case that I'm not promoting either the Republicans or the Democrats, I'd kind of say a pox on both their houses. They're just two sides of the same coin. What I think we ought to have is a much smaller, much much smaller government. But are we going to get one? No, we're not getting it right now, because I think a lot of people aren't aware of the fact that the government is running 2 trillion, $3 trillion per year deficits, and those deficits are going up, not down. So where's that money coming from? Well, most of it's being created out of thin air. It's being inflated through the banking system. So the prognosis is not terribly good. Now, along the way, of course, people have hid in real estate, made a lot of money in real estate. Real estate prices have gone up faster than retail inflation has gone up. Yeah, but I'm asking myself whether it's not possible that the real estate market could come unglued at this point, because it floats on a sea of debt. What do you think, Keith, do you have any fears about that?   Keith Weinhold  29:27   Homeowners are in great shape today. They have record equity positions. They're not going to walk away. Many of them are still locked into these really low mortgage rates, so they're in really good shape. This is something very different from the 2008 global financial crisis, when you had irresponsible borrowers that had negative equity positions and an oversupply of housing so they could move out and get something cheaper. Today, if you move out in the great situation that you're in with your low mortgage rate and a high equity position, you'd lose your high equity position and. Might have to go pay rent that's higher somewhere else, so I don't see a lot of real estate appreciation coming over the next year or two, but I don't see any impending crash, largely due to that condition, there's not distress in the market.   Doug Casey  30:17   Are you worried about the fact that most local and state governments are on the ragged edge of insolvency and might be raising their real estate taxes and of course, insurance costs seem to be going up a lot faster than most other costs as well. Right now, utility costs are relatively low because oil and gas prices are low, but that could change too. I mean, is there anything that could take the real estate train off the rails?   Keith Weinhold  30:47   Not that I see. In fact, real estate values have only fallen substantially one time since World War Two, and that was during the 2008 global financial crisis, when we had conditions that are largely the opposite today. That's back when we had an oversupply and an irresponsible borrower that had negative equity so they wanted to walk away, and that created the down drain. To your point, yes, I do see property taxes continuing to increase, but because values aren't increasing as much, they would have to increase the mill rate to get further increases, and then most of the big insurance increases, many feel they are done. They had to come up. Because with inflation, the replacement cost of a property, if you would have a loss, rose and increased that way. So because we're still supply challenge in a lot of places, I see prices holding up but not appreciating like 10% anytime soon, and that's due to an affordability constraint. I don't see how they could possibly do that. And when we talk about that average person Doug, that person trying to make their mortgage payments or their rent payments, I was talking on a recent episode about the K shaped economy, I think it's something that we often visualize in our mind. You see the upper branch of the K rising, the lower branch of the k falling, which is emblematic of this hollowing out of the middle class. But I recently saw it graphically represented, where you have the capital share of income going up for people over the decades. That used to be 5050, between capital share of income and labor share of income. Back 60 years ago, it was 5050, but now, with this K shaped divergence, one's capital share of income is about 57% today, and their labor share of income is only about 43% today. And it's kind of sad. I sort of hate to say it out loud, but it's like, hard work just does not pay off, like it used to. Much of this due to inflation pumping up asset values.   Doug Casey  32:52   Well, I understand what you're saying, and I think you're correct, because there's an old saw. They say the rich get richer while the poor get poorer, and that's kind of what this K shaped economy is telling us. You've got the super rich in the top 1% or 1/10 of 1% that are becoming Ultra double wealthy, and the guy at the bottom, well, his social security taxes have risen from almost nothing to 15% of his wages, and it's a real problem. And it's said that the members of Gen Z can't afford to buy a house today as well. So what do you do about this? Well, my suggestion is, if possible, you don't want to get a job working for somebody else. If at all possible, you've got to work for yourself as an entrepreneur. That's the first thing. It's very hard to get wealthy working for somebody else. The best is to work for yourself, but in order to do that, you have to train yourself with lots of skills and lots of knowledge. And I'm not sure if people are doing that to the degree they ought to either. So I don't know how this is going to end. And of course, you mentioned earlier, artificial intelligence and robotics are tied up hand in glove with artificial intelligence. It's clear that within five years, we'll have robots that may not look entirely like people, but can do almost anything that a human being can do, and this is going to put a lot of pressure on people that don't have special skills, especially with artificial intelligence being programmed into these super competent robots. So the whole world is changing right before our very eyes. Right now,   Keith Weinhold  34:39   when we talk about the middle class struggle. I probably follow the housing market more closely than you do. The NAR recently gave us the latest statistic. Two years ago, the average age of the first time homebuyer was aged 35 last year, it rose to 38 this year, it's now 40 just the average. Age of the first time homebuyer. So in high cost areas, that could very well be 45 I mean, people are getting gray hair before they make a down payment for this middle class that's trying to get into the ownership class.   Doug Casey  35:13   And the further back you go, the younger the age right people were buying houses at So, I mean, it used to be people would try to buy a house right out of school. Frankly, that's out of the question today.   Keith Weinhold  35:27   Yeah, I sure don't remember those days myself, but Yeah, it sure was substantially younger just a couple decades ago. Well, Doug, where are we going with all this? I mean, does a reset eventually happen with either runaway inflation? Do you think that happens first, or some sort of market crash, or is it something else? I mean, what cataclysmic act is likely to happen first?   Doug Casey  35:52   Well, look, I hate to be too gloom and doomy, because everybody, first of all, generally speaking, trends in motion stay in motion, and everything has been maybe gradually descending standard of living wise, but the economy's held together, and we haven't had any catastrophic collapse. Well, almost in 2008 and a couple other times, but I think we're headed for one. So what should you do about it? I would say, consume less if you possibly can, and save what you can, if possible, take a second job while it's still possible, to go out and get a second job or found an entrepreneurial activity so that if you lose your job, you've got a backup system. But with the changes in technology and of course, what's happening in robotics and AI are just part of it. You're not going to be able to rely on what you relied on in the past, because the world is changing very, very radically as far as real estate is concerned. Look, I actually own a lot of real estate, but, you know, I've come to the conclusion that at this point I want to treat my house and other real estate, basically as a not so much as an investment to make money, but to store value. That's right, a store of value where I can put some capital aside. I don't want to keep a lot of money in dollars. That doesn't mean I want debt either. That's risky. For many, many years, I've advocated and bought gold and silver because they are money in its most basic form, and it's worked out really well. I started buying gold at about $40 it's at about 4000 today, and I've always treated it, almost always, as a savings vehicle, not as a speculative vehicle, although, if I want to speculate, I speculate in mining stocks, which are a leveraged way of playing gold and silver, the most volatile class of securities on the planet, actually, and I understand that a lot of people today have Robin Hood accounts and are speculating on the stock market, desperately trying to stay ahead of currency debasement and somehow build a nest egg for themselves by speculating in the market. Generally, that's not a good formula for success you're playing against, you know, extremely smart and well capitalized and knowledgeable big boys, and the fact that everybody's doing it is also, in itself, a tip off to the fact the stock market could be at the tippy top right now, I kind of think it is a bubble in the tech stocks. It's tough, Keith, there's not a lot of places to run and hide at this point.   Keith Weinhold  38:39   Price to earnings ratios are really bloated in the s, p5, 100. I'd love to get your thought on this. Doug, if a person can get a 30 year mortgage rate for a rental property where the rent income meets or exceeds the expenses at a mortgage rate between six and 7% should they do that?   Doug Casey  38:57   Look, if you can cover your mortgage a fixed interest rate mortgage 30 years. One thing that you can almost plan your life around is that dollar is going to lose value every year. So the actual value of your debt, your mortgage, is going to go down every year, right? And presumably the rent that you can charge on your house is going to go up every year. So yep, doing it the way I think you're doing it is an excellent plan for slow and steady long term success. Yeah, it makes sense. You're right.   Keith Weinhold  39:30   We actually have some listener questions on the thing that you brought up, which I call inflation profiting when you borrow long term fixed interest rate debt and get to pay it back with more plentiful dollars down the road. Some people don't understand what you just explained. One way I brought it up with my listeners is we'll just look back 30 years ago, in 1995 the average home cost 130k an 80% loan would be 104k so here, 30 years later, that median home costs over 400 K, and you still just owe 104k on the loan. That's the benefit of what I call inflation, profiting on long term fixed interest rate debt. And of course, your tenant would have paid that down to zero as well. But that kind of makes the benefit be more apparent when we look back into the past 30 years. Well, Doug, as we're winding down here, you have any other thoughts about, just say, the average American out there, what they should do with the Fed behaving and controlling the economy like we do. We're talking about the average American, maybe someone with a mortgage, some rental properties, some savings, maybe a 401, K. How do these potential shifts in Fed policy translate into real life consequences and actions for them. Is there anything else?   Doug Casey  40:44   Well, look, don't count on some outside force to kiss everything and make it better. You've got to look out for number one. And as I said before, the way you do that is you should cut back your expenditures every way you can at this point and when you cut back your expenditures, save that money. Now, what do you do with the money that you save? It's not as easy making that recommendation as it was a few years ago, when I was recommending gold, when it was much cheaper than it is. Now it's at $4,000 now look, save money, get an extra job, earn money, cut back your consumption, learn some new skills, because we don't know how things are going to reorient with the immense advances being made through AI and robotics. That's just generalized advice, but that's all you can do, is well and buy real assets. Nothing wrong with buying a house the way you're talking about if you can buy it and the mortgage is cracked with rent. Eventually, I think we're going to see interest rates go back up to the levels that they were in the early 1980s people don't remember this, but the US government was paying 1518, even 20% for its money, and mortgages were, well, 15, 16% it's going to happen again. So I think if you can lock in a mortgage anywhere in here, on a good piece of real estate that covers the mortgage, that's simple, it's doable. Everybody should try to do it. In addition to the other things I mentioned    Keith Weinhold  42:20   in 1981 the 30 year fixed rate mortgage peaked at over 18% to our earlier point about the fact that mortgage rates are actually historically low now so are fed funds rates. Well, Doug, tell us one last time about your new book and then any other resources. If our audience wants to engage with you   Doug Casey  42:40   I do a blog will know who he is. We've had him here on the show twice, yeah, well, he writes there for us every week, and we've got great articles. That's number one. Number two, I do a podcast with Matt Smith every week called Doug Casey's take on youtube.com third, I urge everybody to get this book, which talks about, if you have a grandchild, a son, it talks about why you should not go to college and what you should do exactly instead of going to college. So that's another thing to do. And we have a newsletter that also covers mining stocks, which is where I'm concentrated in at the moment. They're very cheap, very volatile, and one of the few places in the market, and I hate to say this, that offer the potential of 10 to one or more returns in the near future. So I guess those are the areas where you can find out more about me.   Keith Weinhold  43:49   Again, the new book from Doug is called the preparation. It shows a compass on the cover, and then internationalmen.com. Is actually where Doug wrote a piece called The Fed's quiet war against the middle class, which spawned this very conversation right here. Doug, it's been valuable as always. Thanks so much for coming back onto the show.   Doug Casey  44:08   My pleasure. Keith, thank you.   Keith Weinhold  44:16   Yeah, real estate is positioned for price stability. I was actually investing directly in real estate through the 2008 global financial crisis, and I know what happened is that people walked away from properties when the economy got rough and they couldn't make their payments. It is almost impossible for that to happen today. Homeowners can make their payments. Look through Census Bureau data in realtor.com we know a couple things here. Four in 10 homeowners have no mortgage at all. They own the property free and clear. And then among that group with mortgages, 70% of those borrowers still have a mortgage rate locked in at. Under 5% yes, still today I'll amalgamate those for you. This means that 82% of borrowers either have no mortgage or they have a rate under 5% so that is really affordable payments, along with the protective equity and inflation can't touch that principal and interest amount in addition to real estate, Doug Casey is a longtime gold and silver guy. Of course, both of those have sort to fantastic new all time highs this year.    Keith Weinhold  45:34   Merry Christmas and Happy Holidays from me and everyone here at GRE. Next week is another big one. You'll get GRE home price appreciation forecast for next year to the exact percent. I'm Keith Weinhold. Don't quit you daydream.   Speaker 3  45:53   Nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of get rich Education LLC, exclusively   Keith Weinhold  46:21   The preceding program was brought to you by your home for wealth building, get richeducation.com  

Jonathan Cross picks his top recording of Tchaikovsky's Symphony No.1 'Winter Daydreams'

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On today's episode, Kara welcomes Julie Bornstein, Founder and CEO of Daydream — the AI-powered, chat-based fashion shopping agent that's reimagining how we discover and shop for clothes online.Daydream is reinventing the way people shop for fashion by replacing endless scrolling and outdated search bars with something radically better — personalized, conversational discovery. Backed by $50M in funding and featuring over 8,000 brands, Daydream lets users simply ask for what they want — by style, mood, occasion, or photo — and receive tailored results instantly. It's fast, intuitive, and built for the way people actually shop today.Julie, of course, knows this space well. A seasoned leader in commerce and tech, she's held executive roles at Sephora, Nordstrom, and Stitch Fix — and founded THE YES, which was acquired by Pinterest in 2022. In this episode, she shares what sparked the idea for Daydream, why AI is the future of retail discovery, and what she's learned from building (and scaling) multiple consumer companies.A must-listen for anyone curious about the future of fashion, AI, entrepreneurship, and what it takes to build something truly transformative. Are you interested in sponsoring and advertising on The Kara Goldin Show, which is now in the Top 1% of Entrepreneur podcasts in the world? Let me know by contacting me at karagoldin@gmail.com. You can also find me @‌KaraGoldin on all networks. To learn more about Julie Bornstein and Daydream:https://www.daydream.inghttps://www.instagram.com/daydream.inghttps://www.instagram.com/juliebornsteinhttps://www.linkedin.com/in/juliebornstein Sponsored By:Shopify - Sign up for your one-dollar-per-month trial period at Shopify.com/karaSquare - Get up to $200 off Square hardware when you sign up at square.com/go/karagoldinAuraFrames - Visit AuraFrames.com and get $35 off Aura's best-selling Carver Mat frames by using promo code KARA at checkout.LinkedIn Jobs - Head to LinkedIn.com/KaraGoldin to post your job for free.Odoo - Discover how Odoo can take your business to the next level, by visiting Odoo.comRobinhood - Get started today at robinhood.com/yourmoney Check out our website to view this episode's show notes: https://karagoldin.com/podcast/779

Keith discusses the K-shaped economy, where income from capital assets is rising while labor income is declining.  In 1965, 50% of income came from labor and 50% from capital; by 1990, it was 54% and 46%, respectively, and today it's 57% and 43%. Keith emphasizes the importance of how capital compounds over labor and advises on building ownership in real estate and businesses.  Finally, he answers your listener's questions about: agricultural real estate inflation, profiting on mortgage loans, transitioning from accumulation to preservation and a fast-growing state that no one talks about. Episode Page: GetRichEducation.com/584 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com GRE Free Investment Coaching: GREinvestmentcoach.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  For predictable 10-12% quarterly returns, visit FreedomFamilyInvestments.com/GRE or text  1-937-795-8989 to speak with a freedom coach 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— GREletter.com or text 'GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript: Keith Weinhold  0:00   Keith, welcome to GRE. I'm your host. Keith Weinhold, capital compounds, labor doesn't realizing this can change allocation decisions for the rest of your life. Then I discuss giving. Finally, I answer your listener questions about agricultural real estate inflation, profiting on mortgage loans when it's time for you to stop accumulating properties and a fast growing state that no one talks about today on get rich education   Speaker 1  0:33   since 2014 the powerful get rich education podcast has created more passive income for people than nearly any other show in the world. This show teaches you how to earn strong returns from passive real estate investing in the best markets without losing your time being a flipper or landlord. Show Host Keith Weinhold writes for both Forbes and Rich Dad advisors, and delivers a new show every week since 2014 there's been millions of listener downloads of 188 world nations. He has a list show guests include top selling personal finance author Robert Kiyosaki, get rich education can be heard on every podcast platform, plus it has its own dedicated Apple and Android listener phone apps build wealth on the go with the get rich education podcast. Sign up now for the get rich education podcast or visit get rich education.com   Corey Coates  1:18   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  1:34   Welcome to GRE from Williamsburg, Virginia to Williamsport, Pennsylvania and across 188 nations worldwide. I'm Keith Weinhold, and you're listening to get rich education, and I'm somewhat near Williamsport, Pennsylvania today. For years, I've told you about the widening canyon between the haves and the have nots, and that's something that you might have only visualized in your head or merely considered a theory, but now you can see it. There's a chart that I recently shared with our newsletter subscribers that might just make your spine tingle and look, I don't like saying this, but hard work just does not pay off like it used to. This is emblematic of the K shaped economy. Just visualize the upper branch of the K, a line rising over time, and the lower branch of a letter k, that line falling over time, both plotted on the same chart. So what steadily happened over the last 60 years really is quite astonishing. And look, I don't want the world to be the way that I'm about to tell you it is, but that's just what's occurring. The share of one's income from capital assets is rising, while the share from labor keeps decreasing simultaneously. Now just think about your own personal economy. What share of your income is from your invested capital versus how much of your income is derived from your labor. When you're the youngest, it's all labor. When I got out of college and had my first job, all of my income was from labor. I certainly didn't have any rental property cash flow or stock dividends. But for Americans, here is how it's changed over time, and this K shaped divergence is alarming people in 1965 it was 5050 by 1990 54% of income was from capital and 46% labor. Today it's 57% capital and only 43 labor. Gosh, the divergence is real, and it's only getting wider, and I really had to dig for the sources on this K shaped economy chart. They are the BLS, the Tax Foundation and the International Labor Organization. Increasingly, asset owners are the haves. The upper part of this K shaped economy, that line is drifting up like a helium balloon that you forgot to tie to the chair. It just keeps going up and then the labor share of income, which is shrinking, that is also known as how much of the economic pie goes to people who actually work for a living. That is another way to think of it. So frankly, that's why I say hard work just does not pay off like it used to, because with each wave of inflation, assets, pump, leveraged assets, mega pump and wages lag behind, and we can't allocate our resources in the way that we want the. World to be, but how the world really is. In fact, the disparity is even greater than the chart that I just described to you, because it doesn't even include value accumulation, also known as appreciation. I was only talking about income there, and the reality is that working for a paycheck just pays off less and less and less. No amount of working overtime on a Saturday can make you wealthy, but it might make you miserable. Owning assets pays off more and more. In fact, the effect is even more exaggerated than what I even described, because, as we know, the tax treatment is lighter on your capital gains than it is your income derived through labor. As the economy keeps evolving, those who benefit the most, they do not sell their time for money. They're not trading their time for dollars. In fact, let me distill it down here are, yeah, it's just four words that could change the way you allocate your time and your effort for the rest of your life. Capital compounds, labor doesn't. yeah, there's a lot right there. If you want to keep up or get ahead, you need to be on the capital part of the K, the upper part. And what would that really look like for you in real life? What does that practically mean? It means building ownership into your financial life, owning real estate, owning businesses using prudent leverage, owning things that produce income, and even merely owning more things that appreciate. And here's the great news, though, real estate is still the most accessible, leverageable, tax favored capital friendly asset class ever created. That's whether you're just patching together like 43k for a down payment on your first turnkey single family rental, or making a tax deferred exchange into a 212 door apartment complex. Okay, this is how that can look in real life. The bottom line here is that as the economy gets more and more K shaped, with this divergence between Americans capital share of income increasing and labor share decreasing, that you want to stack real income generating assets. That is the big takeaway.    Keith Weinhold  7:44   Well, this is the time of year where a lot of people feel compelled to give donations. And as a GRE listener that's paid five ways, you've got more ability than others to give, I need to caution you about some things. I'm sorry that it is this way, because I do want to promote giving. It's kind, it's virtuous, and it's not a completely selfless act either, because when I give, it makes me feel good too. You're making a difference, and that feels great. Let's talk about the downsides of giving, though, because few people discuss that. We already know about the upsides when I give to an organization, say, 1500 bucks here, $1,000 over there, well, inevitably, you do get on that organization's contact list. And yeah, I suppose that it is easier to retain a customer or donor than it is to find a new one. Sometimes I just make what I expected to be a one time donation, but they will keep contacting you. Now, I was once on the other side of this. I served on a volunteer committee that organizes athletic events, and a friend of mine, John made a $1,000 donation to our organization one year, which was really kind, and he's just a day job working kind of guy when he didn't make the donation. The following year, someone made it a line item in our meeting minutes to say that John's donation was not renewed. Like that's the only thing they brought up. Oh gosh, that really struck me the wrong way, because here's a guy that traded his time for dollars at a job that I happen to know he doesn't like very much, and the committee statement was that the guy didn't renew his donation. Sheesh, now, when it comes to the tax treatment of, say, $1,000 that you make in a donation, there's a lot of misunderstanding about how that works, and this is the type of subject that you're thinking about now, because sometimes people want to get a tax break tallied up before year end, because some people think that after the year ends, well, the IRS pays you back the $1,000 you donated because it's tax deductible. No, that's how a tax credit. Works. But a tax deduction, which is all that you might be eligible for, means that if your annual income is 100k well then a 1k donation lowers your taxable income to 99k so if you're in the 24% tax bracket, then you'd get 240 bucks back. But you know, in many or even most cases, you're not going to get any tax break at all for making a donation, and this is because you did not exceed the standard deduction threshold, which is now almost 16k if you're single and almost 32k married, you get to deduct those amounts from your taxable income no matter what. So the standard deduction, in a way, it's nice, because you don't have to keep receipts and do all that tracking for everything. So I've had that experience myself where, huh, feeling a little generous throughout the year, giving $1,500 here, $1,000 there. Oh, and then realizing that it does nothing for me on taxes, you have to give more to exceed the standard deduction amount and start itemizing them. And mortgage interest does go into that amount. Okay, it does go into the amount to try to get your total above the standard deduction threshold. So go ahead and give freely, but in a lot of cases, keep in mind that it often does nothing for your taxes, because you're taking that standard deduction if you indeed are. There's been another tip flation trend that's annoying, and that is increasingly when I give a donation online, I'm asked to if I want to leave a tip on top of the donation. That is so weird, a tip is for good service. I'm serving you by being generous enough to give a donation. Sheesh, a tip request on top of a donation. But please do give when you do, one thing that you might want to specify is that it is a one time donation, if that is your intent, or they will constantly follow up with you.    Keith Weinhold  12:06   Coming up next, I'm going to answer your listener questions. A member of Team GRE, who you haven't heard before, is going to come in to ask me your listener questions, and one of them is going to be among the most important topics that our show has never addressed, and it's about time. I'm Keith Weinhold. You're listening to get rich education.    Keith Weinhold  12:28   You know, most people think they're playing it safe with their liquid money, but they're actually losing savings accounts and bonds don't keep up when true inflation eats six or 7% of your wealth every single year I invest my liquidity with FFI freedom family investments in their flagship program. Why fixed 10 to 12% returns have been predictable and paid quarterly. There's real world security backed by needs based real estate like affordable housing, Senior Living and healthcare. Ask about the freedom flagship program when you speak to a freedom coach there, and that's just one part of their family of products, they've got workshops, webinars and seminars designed to educate you before you invest. Start with as little as 25k and finally, get your money working as hard as you do. Get started at Freedom, family investments.com/gre, or send a text now it's 1-937-795-8989, yep, text their freedom coach, directly again, 1-937-795-8989   Keith Weinhold  13:40   the same place where I get my own mortgage loans is where you can get yours. Ridge lending group and MLS, 42056, they provided our listeners with more loans than anyone because they specialize in income properties. They help you build a long term plan for growing your real estate empire with leverage. Start your prequel and even chat with President Caeli Ridge personally while it's on your mind, start at Ridge lending group.com that's Ridge lending group.com   Kristen Tate  14:14   this is author Kristin Tate. Listen to get rich education with Keith Weinhold, and don't quit your Daydream.   Keith Weinhold  14:32   Welcome back to get rich Education. I'm your host. Keith Weinhold, they say that it takes a village to get some things done and well, it takes a team to prop up this slack jawed operation one GRE team member, capably behind the scenes for more than a year and a half now, is Brenda Almendariz, welcome in. Brenda, Hi, Keith, thanks. Rather than me asking the listener questions this time you. You get to do it, but before we do that, just tell us a bit about your real estate investing.    Brenda  15:07   Sure. So I started maybe learning a little bit about investing and kind of looking into other options to grow my wealth. And I came across the GRE podcast and a few others. So I think about 2018 I did a little bit of just learning and kind of educating myself. And then 2019 I bought my first turnkey property. Turned out well. And then 2020 I bought my second one. And then in 2021 I decided, okay, this is working really well. Maybe I'll do a house hack. I'll do something a little different, and in a year, then maybe I'll do something else. But I've been in my 2021 home now for about almost five years. I'm looking for the next one, hopefully within the next year. But yeah, it's been great. Turnkey. Just met real estate investment company here at my local REIA, and then I learned that I could actually connect with other companies across other places through GRE but yeah, it's been great.   Keith Weinhold  16:02   Brenda lives in Phoenix, just about as close to the center of Phoenix as you can possibly be. I sat down with Brenda for lunch the last time that I was in Phoenix, and like a lot of people, almost everybody that works here at GRE they started out as a listener before they ever worked here. And really, it's that same story with Brenda as well. So yeah, Brenda will want to ask us the first of what we have about four listener questions today   Brenda  16:31   we do, so I'll go over the first one here. Question is, I would love for you to revisit some of the non traditional example, coffee plantation, CBD manufacturing, teak plantation, Belize resort properties and syndication projects you've discussed on the GRE podcast just to see how they turned out. I'm sure some of them failed to deliver the expected returns, and it's the failures that many of us learn the most from   Keith Weinhold  17:02   Yeah, totally. Okay, so not so much a listener question here, but a comment to discuss more of these agricultural real estate investments or ones that are in syndications off of the investment type that you can't do yourself, is what we're talking about here, rather than direct ownership of residential rental property and an appeal to follow up down the road to see how they really turned out. And you know, Brenda, I'll address you because we don't have the listener name with this question. Most people in my position, if an investment has been discussed on the show, and then that investment didn't go as well as was hoped for, you know what? They never tell the audience about it. However, there's the Panama coffee farm investment. We first discussed that here way back in 2015 and we had a GRE field trip where I met a lot of you in person there in Panama. And as I often do when we discuss a particular investment here, I bought and still own Panama coffee farm parcels myself. That investment, it paid cash flow from the crop yields for a few years, and then it stopped. The good yields stopped due to covid disruption, and since then, there have also been erratic weather patterns like drought and precipitation of the wrong levels and at the wrong time of year, and there's been more of a prevalence of pests in disease like coffee leaf, rust and the operator. They have been communicative and forthcoming all the while they're still issuing the annual report that I read, and sometime after that, I think that a lot of investors were assured, because it sort of made national news, international news, that markets for both coffee and cacao have been suppressed, at least from the standpoint of there's not enough crop yield. I mean, that is a problem in a lot of places worldwide. Now I hope that turns around, and it very well may. In fact, we did something here that very few shows do. Back on episode 431, we had the Panama coffee farm CEO come back on the show to describe exactly what I just told you about there. And few shows are willing to do that. Some people just want you to think that every single investment that's discussed goes as well it was hoped for, or even better than expected. But that is not real world. You got to be authentic in real So, okay. Listener, comment, well, taken there. They appreciate that sort of follow up, and they would like more of that. All right, that's great. What's the next question? Brenda.   Brenda  19:40   Sure. So the next one comes to us from our audience over on YouTube. So in response to our real estate pays five ways in a slow market, YouTube video matrices wrote, There is no inflation profiting. You would have to be paying off the loan with an income that goes up with housing inflation. That's plausible if you are a wage earner, but if your source of income is rental properties, then there isn't a wage increase that reduces the effective loan amount. You are double dipping in the inflation profiting column by counting appreciation which you earn as a real estate investor and inflation profiting, which you earn only if your wages go up at the rate of housing inflation, and you use those wages to pay off the loan, which you don't   Keith Weinhold  20:33   Okay, again, somewhat of a statement here. I suppose there's a question implicit within that for matrices. I'm not sure how you say that name exactly. Wondering about inflation profiting. Are you counting it? Right? I don't know about that. The part about paying off the loan faster if you're a wage earner, I mean, that's plausible, but not if your income is from rental properties. I mean, see that's actually backwards, because your cash flow goes up faster than the rate of inflation due to your biggest payment, your principal and interest staying fixed, so your net rent income goes up even faster than the rate of inflation. So inflation profiting, therefore it's even better than how I've been presenting it and calculating it. Now with that understood matrices, here's one way for real estate investors to understand inflation profiting on your loan if you still have trouble getting with that. 30 years ago, in 1995 the US median home price was 130k with an 80% loan, your mortgage balance at origination would have been 104k and the monthly mortgage payment is 763 with the 8% market mortgage rate level that you would have gotten at that time. Now, even if we don't apply any principal pay down at all, your mortgage balance today is still just 104k and your payment is still just 736 bucks, and it is substantially easier to make that payment today, because your wages and salaries and rent incomes are multiples higher. When you originate a loan, the bank doesn't ask to be repaid in dollars or their equivalent. The loan documents only say dollars and dollars are worth less and less and less. So today, your median priced property is worth over 400k despite still having that tiny 104k loan balance. And of course, your tenant would have paid that down to zero, and we aren't even counting that part, I think, to really exaggerate the effect and help make the inflation profiting concept crystallize for you, matrices. If you go back 100 years, the median home cost was 11,600 bucks. An 80% loan would be just over 9k that you borrowed. Okay, so at a 7% interest rate, 30 year loan, the monthly payment would be 94 bucks, laughably small. That's less than the cost of a nice dinner out today. That's all you owe on a median priced property, which is over 400k today. So because it doesn't feel like you're tangibly walking away with anything when you sell a property, hopefully that helps make it real mitricas. And one last way to think about it is, let's just forget real estate for a moment. Would you loan your best friend 100k for 30 years interest free, even if we're somehow absolutely guaranteed that he would pay you back? Well, of course, he wouldn't do that, because inflation destroys the lender and benefits the borrower. So you would want to be the borrower in that case, because the borrower profits from inflation, profiting just like you're the borrower with income property. That's the position that you want to be in. But I'm glad we brought this up, because a lot of people have that question. That was a good one. Matrices, even though you seem to sort of be doubting if inflation profiting is a real thing with the way you approach the question, hey, I really appreciate it. Anyway, what's the next one? Brenda   Brenda  24:10   yep. So the next one we have is Mark. He wrote into our general inbox, and he says, I have been listening to your podcasts from the beginning, and I believe I have not missed a single show. Wow. Yeah, it would be hard to argue with your strategy of using debt to rapidly increase your returns and expand your rental real estate portfolio. This method is great for the accumulation phase of one's life. However, I believe that you have never addressed the next chapter of everyone's life, phase two. I am, of course, talking about preserving your wealth, which is phase two. Yeah, I only ask this because that is what stage of life I am in. For background, he has 15 rentals, seven mortgages. Age 62. Currently all managed by a property manager, and he is married and an empty nester. Please note, no matter how much money is made from rentals, he said, his wife's view is that it is work, and so she does not want any more homes or work. This would be a great idea for an upcoming show. Please consider thanks, Mark.   Keith Weinhold  25:20   Yeah. Great stuff, Mark. And before Brenda came on, we discussed which questions that she's going to choose. And I definitely wanted to have this one in there, because, I mean, this is one of the most important topics that's never been answered on the show, and it really needs to be answered today. The accumulation phase of Mark's life is done. He wants to know about how to approach the preservation stage. First of all, Mark, congratulations. You've listened to every GRE episode, 584, of them now, and you've clearly benefited from acting so good for you to be in this position. In fact, this show had its inception in 2014 and it doesn't even take these 1011, years to reach financial freedom, if you follow my plan. So you are there. All right, so, Mark, you've got 15 rentals, seven mortgages. You're age 62 they're currently managed by a property manager. You're married in an empty nester. I mean, you've made it, and you know that you've made it when you have enough income to support your desired lifestyle. That's what we're talking about here. Financially Free, beat step free and all of that, I'm going to speculate mark that if you had tried paying all cash for every property, you wouldn't have gotten very far. You wouldn't have made it to this point. You know why this question resonates so well with me, Mark, despite being quite a bit younger than you, I am at that stage as well. I definitely don't need to add more properties for the rest of my life. Now. I don't have kids yet either, so there's no clear air there. In fact, one reason that I hold on to my properties is to help educate our audience to be a real investor in the game and to be able to keep up with trends. You can just kind of tell when someone's not investing in real estate themselves. So if I talk it, I want to keep doing it now for you, Mark, it's not about rushing to pay off your seven mortgages, as you know from listening, that's usually not your best return on capital. If you've already made it, there is absolutely zero reason to add more properties, I would agree, especially if you know, in your wife's eyes, that creates a headache, and maybe yours as well, once you get to a certain point. So as far as this preservation stage, since you've moved away from the accumulation phase, the LLC is the favorite protection structure, not a C or an S Corp. And I have done shows on that with attorneys before. Since I'm not one of your 15 properties, if one or two are less profitable or for whatever reason, you just have difficulty getting those rented during vacancies, okay, you can sell those off if you don't want to do the 1031, exchange into more property, you can pay the tax. That's an option, but you will also have to pay depreciation recapture on those properties and mark. If there's one thing I wish I knew, it's that if you do have children or clear heirs, but the gold standard for passing along properties to heirs is a revocable living trust, and if you only remember one thing about that, a properly drafted living trust is the number one way to pass along rental properties smoothly. And why it's great is that it avoids probate. Probate is a court supervised process. It takes months or years of delay. So instead, with a revocable living trust, heirs get access to your properties almost immediately. Now you are age 62 hopefully this isn't happening anytime soon, but you do keep full control while you're alive, it's easy to update a revocable living trust, but the big one probably is that it prevents family disputes and it keeps everything private. That way there's no public probate record. And the bonus is, if you own properties in multiple states, a trust avoids multiple probates, that's huge. So those are some considerations. Mark as you've Congratulations again. Move from the accumulation phase to the preservation stage. It's a completely normal, natural process. You sure don't have to keep adding properties for ever and ever. Congrats. You made it. You did it.    Brenda  29:37   Great. We've got another one, Keith. This one is from Tim in Philomath, Oregon, and he says, I would be interested in the days ahead, if you would be able to help us understand why North Dakota is projected to grow so much.   Keith Weinhold  29:54   Okay, thanks, Tim in follow math, Oregon, another word I'm not sure how to pronounce. Now, yeah, you might think it's unusual that I would want to answer this question. For a low population state of under 1 million people, like North Dakota, from today to 2050 there's forecast to be 9% population growth nationally, but in North Dakota, it is 34% that is quite a surge, and that is per visual capitalist via the University of Virginia, but North Dakota's projected growth, it looks surprisingly strong on paper, especially for a cold, rural, low population state. But really, there are at least four major forces behind the fast 2025 to 2050, Outlook, and when you break them down, the growth actually makes sense. So I want to talk about this, because it's really a template for what makes for a growing place and a good future real estate market, no matter where it is. But in North Dakota, you've got this continued energy sector, strength, oil, gas and next generation energy. Part of what's driving the growth is something that's definitely not a new story. It is still the Bach and shale. It's still one of the top US oil fields. You got advances in drilling. That means more production with fewer rigs. That makes a sector more resilient. You've got global demand for liquid fuels projected to remain high through 2050 I know people like to talk about renewables, and there probably is a future there. But it's not like we're going to go all renewable right away. North Dakota is aggressively expanding carbon capture. So energy equals jobs. Jobs equals population retention and in migration, there's a national labor shortage in North Dakota. It's got this skilled worker hole. The US is going to face a major labor shortage through 2050 that's because of trends that you really can't change, like an aging population and low birth rates. That makes these high wage, high demand energy and engineering jobs stickier. North Dakota consistently leads in labor force participation, job availability, good starting wages for skilled trades, and they always seem to have a low unemployment rate, lower than the national average. So in other words, people move where the jobs are, even if it's cold. They really have one of the best economic outlooks in the country. There's a report called Rich states, poor states. In their latest one, they ranked North Dakota fifth nationwide in economic outlook, and that's above Texas and Florida and Tennessee, and that's because North Dakota has low taxes. They're business friendly, they're light on regulation. Businesses like that, their budgets are stable, and they've got strong public finances. So states with those fundamentals, they tend to grow pretty well over long horizons, and North Dakota has this demographic momentum. It's a younger state than all the surrounding states. They have a younger median age, high birth rates, so they've got this faster natural replacement rates, and they have really strong university systems, both und and North Dakota State, and what that does is that retains those graduates for jobs like energy and engineering and agriculture. So North Dakota benefits from this high stay rate, like a lot of people move for jobs, and they end up staying there, and their population growth seems fast, but the overall population small, so a net gain of 150,000 people, that really seems huge in percentage terms. It's steady rather than explosive growth. We're talking about annual gain. So really, a takeaway for investors is that North Dakota's growth is not a fluke. It's from strong economic policy, a big, durable energy engine, high earning jobs. You got this favorable business climate, and really unexpectedly young demographics. I read that the counties that will grow fastest are Cass Williams and stark and, you know, Brenda. If we learn about a reputable North Dakota property provider, maybe we'll talk about them here on the show. So if you the listener or anyone else know about one, write into us at get rich education, comm slash contact, and we'll check them out. And also, more broadly, if you want your listener question answered in the future, that's where to write to us as well, again, at get rich education.com/contact, thank thanks for the North Dakota question, Tim and Brenda, it's nice to have you here to ask the questions in a different voice.   Brenda  34:29   Thanks, Keith. Yeah, it's good to be on this side of the show instead of   Keith Weinhold  34:34   a listener. After all these years, there's one episode I'm sure you'll be listening to, and it's this one that you're on today.   Keith Weinhold  34:48   Yeah, much of our team here were GRE listeners before they ever worked here. We just made another hire two months ago. That woman worked for a payment processor. I said at the time, that sounds really boring. It definitely sounds more interesting to work at the GRE podcast. To review what you learned today, capital compounds labor doesn't though I promote being a giver, there are downsides to giving, but they're manageable. Inflation, profiting is the most often misunderstood of the five ways, and you will reach a tipping point where you've won in which you no longer have to add properties. That is transitioning from the accumulation phase to the preservation phase. That is one of the more important unaddressed things on the show until today, and finally, North Dakota's booming growth projections coming up soon on the show, I'll reveal GRE national home price appreciation forecast for next year, where you will learn the exact percent appreciation or decline expected in the future. Until then, check us out at get richeducation.com I'm your host. Keith Weinhold, don't quit your Daydream.   Speaker 3  36:00   You nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of Get Rich Education LLC, exclusively.   Keith Weinhold  36:32   The preceding program was brought to you by your home for wealth building, GetRichEducation.com  

King Eric of Gossamer is missing! Daena goes on the search and what she finds changes her life. To download, right-click here and then click SaveJoin the Journey Into Patreon to get extra episodes and personal addresses, plus other extras and rewards.R.C. Anderson works a day job in the tech sector, but moonlights as an amateur writer. Originally from the Ozarks, he was fortunate enough to grow up during the 1980's in his mother's video store. This allowed him to spend countless unsupervised hours in both the natural beauty of the rural South, and with the VHS classics of the age. This unique blend of influences fired off his imagination, resulting in him crafting stories throughout his life, up to the present day. His works have been published multiple times on the “Journey Into…” podcast. He lives in Hillsboro, Oregon, with two cats.Theme music: Liberator by Man In SpaceTo comment on this or any episode:Send comments and/or recordings to journeyintopodcat@gmail.comPost a comment on Facebook here, or on X here

Keith reviews the state of the real estate market, noting that existing home sales are down about 33% from their 2021 peak, while prices remain firm due to low supply and high demand.  Affordability challenges are driven by stagnant wages, inflation, and higher mortgage rates, with 70% of mortgage holders still locked in at rates below 5%.  He observes that in certain markets, new construction may now offer better investor terms than comparable existing properties, especially where builders buy down rates.  The episode highlights a comparison of nearly a century of asset class returns, reporting real estate's long-term annual appreciation at approximately 4.7%. Episode Page: GetRichEducation.com/583 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com GRE Free Investment Coaching: GREinvestmentcoach.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  For predictable 10-12% quarterly returns, visit FreedomFamilyInvestments.com/GRE or text  1-937-795-8989 to speak with a freedom coach 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— GREletter.com or text 'GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation   Complete episode transcript: Keith Weinhold  0:01   welcome to GRE. I'm your host. Keith Weinhold, how do other audiences feel about the GRE mantras that we've come to love here, like financially free beats debt free and don't get your money to work for you? Then sometimes it's not what you're attracted to in life, but what you're running away from finally comparing the returns from six major asset classes over the past century all today on get rich education    Keith Weinhold  0:29   since 2014 the powerful get rich education podcast has created more passive income for people than nearly any other show in the world. This show teaches you how to earn strong returns from passive real estate investing in the best markets without losing your time being a flipper or landlord. Show Host Keith Weinhold writes for both Forbes and Rich Dad advisors, and delivers a new show every week since 2014 there's been millions of listener downloads of 188 world nations. He has a list show guests include top selling personal finance author Robert Kiyosaki, get rich education can be heard on every podcast platform, plus it has its own dedicated Apple and Android listener phone apps build wealth on the go with the get rich education podcast. Sign up now for the get rich education podcast or visit get rich education.com   Corey Coates  1:18   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  1:34   Welcome to GRE from Kennebunkport, Maine to Bridgeport, Connecticut and across 188 nations worldwide. It is the voice of real estate investing since 2014 I'm Keith Weinhold, and I'm grateful to have you here with me, and we're doing something a little different today, as you'll soon listen in to me as I was on the hot seat being interviewed on another prominent real estate show. But first, when you pull back and ask yourself, why you're really an investor in the first place? There are so many reasons. Maybe you just want a few properties in order to supplement your day job income. Maybe you want to have more than a few so that you can completely replace that active income, or perhaps rather than going the route of building up your cash flow, which is valid, but some think that it's the only way to real estate financial freedom. Instead, you could own, say, nine doors or 22 doors, and even if they all had zero cash flow, you can just keep borrowing against that leverage and equity tax free and live off of that whatever you do when it comes to your day job, income, your degree of disdain for your nine to five job that is going to be greater or less than it is for some others. So your motivation for self improvement, it isn't always about what you're running to in life, which could be real estate investing, but it's also what you're running away from, especially if you don't get a deeply rooted sense of meaning from your job. So you could have both a push factor and a pull factor in what motivates you. There's a scene from the 1999 movie Office Space that just does this incredibly unvarnished job of saying out loud how so many of us feel today. What I'm going to share with you, I mean, you know that you have felt this at least once in your life. Office space wasn't supposed to be a mega hit movie, but it kind of was, because it's so relatable. Let's listen in to part of this clip. This is Ron Livingston playing a disgruntled male employee talking to Jennifer Aniston at a restaurant about his job in the movie Office Space.   Speaker 1  4:09   I don't like my job, and I don't think I'm gonna go anymore. You're just not gonna go. Yeah, won't you get fired? I don't know, but I really don't like it, and I'm not gonna go.   Keith Weinhold  4:24   Then it continues when she asks. So you're just gonna quit? No, not really. I'm just gonna stop going. When did you decide all of that? About an hour ago? Really? Yeah, aren't you going to get another job? I don't think I'd like another job. What are you going to do about money in bills and all that? I've never really liked paying bills. I don't think I'm going to do that either.   Keith Weinhold  4:53   That's it. That is the end of that classic dialog from office space that we can. All relate to you did not wake up to be mediocre, but a lot of people's jobs pummel them into a rather prosaic state. You were born rich because you were born with this abundance of choices, this huge palette in menu, but society often stifles that and makes you forget it, and it gets really easy to just fall into your groove and stay there. The main reason we aren't living our dreams is really because we're living our fears. Failure doesn't actually destroy as many dreams as people think fear and doubt. Does fear and doubt destroy more dreams than failure ever does financial runway? That is a phrase for the amount of time that you can maintain your lifestyle without the need for a paycheck. And it's critical for you to lengthen this runway if you hope to retire early, and it will dramatically reduce your stress level. An example is say that you currently earn 150k per year after taxes, and you spend 126k of that, all right. Well, that means you've got a surplus of 24k a year. Well, it's going to take you a little over five years to accumulate that 126k that you need to annually support your lifestyle. That's what happens if you don't invest. And see investing helps you lengthen your financial runway, that amount of time you can maintain your lifestyle without the need for a paycheck. That's what we're talking about here. Last week I brought you the show from Caesar's Palace in the center of the Las Vegas Strip. So therefore, what I've done is I have gone from the ostentatious and flamboyant over here to the familial and simple as this week I'm in Buffalo New York, broadcasting from a somewhat makeshift GRE studio here, the Buffalo Bills had a home game yesterday, so the city and hotels are busier than usual. Next week, I will bring you the show from upstate Pennsylvania, as I'm traveling to see my family. Let's listen in to me on the hot seat. I was recently a guest on Kevin bups long running real estate investing show. You're going to get to see how I present information and GRE principles for the first time to a different audience. And as I do, you're going to hear me provide new material, but you'll also hear me say quite a few things that I have told you before, even then, the concepts might land differently when I'm explaining them to a new audience. The show is based in Florida, so We'll also touch on the real estate pain and opportunity there. After I'm interviewed, I'm going to come back and tell you about something fascinating. I'm going to compare the returns from six major asset classes over the past century, since 1930 anyway, and that's going to include the first time on the show where I'll tell you real estate's annual appreciation rate over the last entire century. Just about what do you think it is? 8% 5% 3% you're gonna have, perhaps the best answer you've ever had. Here we go.   Kevin Bupp  8:31   Now, guys, I want to welcome back a guest that we've had on. It's been a number of years now. Keith Weinhold, I went back to look at the last episode we had him on. I think it's been about four years. So, you know, four years ago, the world was in the very different state. It was a very different time. And so, you know, thankfully, we're out of the covid era and on to newer and greater things. So for those that don't know Keith, he's the founder of get rich education. He's the host of the popular get rich education podcast. He's a longtime thought leader in the real estate investing space, and like myself. Keith was also born and raised in Pennsylvania. For those that know don't know, I was born and raised in Harrisburg, Pennsylvania, Keith, I believe, a couple hours away from where I was. But Keith has very much a unique perspective on wealth, building debt, and really the housing market as a whole. And today, you know, we'll be diving into everything you know, from why the property itself? This is something that Keith kind of coins, why the property itself is less important than you think, to how the housing crash has already happened in a way that most people don't even realize, to the role inflation and debt play in building long term wealth. And so again, it's been a number of years here, so I'm excited to welcome Keith back here. So my friend, Keith, welcome to the show. It's it's a pleasure to have you back here again, my friend.   Keith Weinhold  9:43   Oh, Kevin, it's good to be here and be in the auspices of another fellow native Pennsylvanian as well.   Kevin Bupp  9:49   That's right, that's right, yeah, no, Pa is rocking and rolling as I think I told you this little, this little tidbit last time everyone, every time I speak with someone from Pennsylvania, they never know this. But I'm going to share this fun fact. Are you already know, Keith. I'm gonna share it with the rest of the listeners here today, Pennsylvania, those that are born and raised there. It's the only state where, if you're from Pennsylvania, you refer to it by its initials, and you assume that everyone else, everywhere else across the country, they know what you're talking about when you say I'm from PA and that's the only state that does that. So I think it's pretty neat.   Keith Weinhold  10:19   That's right. No one else does that. No one else says, I'm from TN, if they're from Memphis, right?   Kevin Bupp  10:24   They don't, they don't. So with that, my friend. So, you know, it's, again, it's been a number of years since we, since we had you last on here, you know, let's start with just, let's back up a little bit. You know, what have you been up to? I mean, what, what have the last few years look like for you? Where have you been spending your time, energy and efforts? Obviously, it's, you know, we've gone through some quite a bit of turmoil over the last five years, and would love to just get an update as to what's going on your life.    Speaker 2  10:48   Well, one of the big words in real estate investing, we all know it, even the person that cuts your hair and cleans your teeth knows it, and that's affordability. You know, really, affordability has been under fire, under pressure. By a lot of measures, we have the worst affordability for home buying since the early 80s, when the Jeffersons was on television. So it's been helping a lot of people deal with that. It's really the effect of three things, general inflation, higher home prices and higher mortgage rates. Really, those three things the crux of the problem. It's not exactly inflation, really. It's the fact that over the long term, wages don't keep up with inflation. And really that's the crux of the affordability problem. So I've been helping people deal with that and put that in perspective, really, Kevin,   Kevin Bupp  11:42   what does that mean for, you know, investment, real estate? I mean, are you still still doing deals? Are you seeing deals still get done by your students? I mean, what? What's your world look like?   Keith Weinhold  11:52    Yeah. I mean, I think you're asking, you know, how many deals are taking place? One way to measure that on a national basis is existing home sales. You know, existing home sales have been down substantially. And when a lot of people hear that, they think, prices, oh no, we're not talking about prices. We're talking about existing home sales. That means sales volume. That means the amount of overall transactions. So to give an idea of a real estate market, a residential one that's become pretty lethargic and not very vibrant, is that sales volume. It had its recent peak of about 6 million home sales back in 2021 I mean, 2021 was crazy, kind of the crux of the pandemic, you know, Kevin, that's when for an open house. You saw cars wrapped around the block for just one open house. Okay, well, that year 2021 there were 6 million existing home sales. Today, we're on pace to do about 4 million, and we also did only about 4 million last year. So if you put that in perspective and think about what that means, prices have stayed stable, but that's a 33% reduction in transactions. So investors, you know, people like you and I, Kevin, we're not as affected by this as some other industries. But think about the mortgage loan industry. If you're doing 33% fewer transactions, think about the hard decisions companies have to make and lay people off. 33% fewer transactions for title companies. It's probably close to 33% fewer transactions for furniture companies as well. So really it's both affordability that's been a problem, and that's led to this relative lethargy, kind of a slow, not very interesting residential real estate market, at least from the transaction perspective, really, really slow.   Kevin Bupp  13:58   But Could, could one not argue, I don't know the data points. Keith, I guess, what did it look like? 2021? Was kind of the peak. I think you'd reference 6 million units a year. Transactionally, what did it look like prior? What, what was, what was a more normal year like? And maybe 2020, wasn't a normal year either, right? Because a lot of folks thought the role was ending for a period of time. You know, 2019 maybe just again, trying to, trying to find maybe a better baseline to use. And then, you know, does, I guess, in my mind, and I don't follow these data points as much as you do, is that maybe 2021, was, you know, somewhat artificial inflation, right? Lots of lots of money pumping into the marketplace. And ultimately, we had to get back to a sense of normalcy at some point in time. And so are we at a at a place of normalcy? Are we still behind the eight ball a little bit?   Keith Weinhold  14:44   We're still behind the eight ball a little bit. 5 million is more of a normal long term number. But yeah, I mean, if we've got 4 million now, that's, you know, 25% less still than 5 million, sort of this long term normalcy rate of existing. Home transactions. And if you're a careful listener, you notice I've been using the word existing that doesn't include new build. So you know, when you the listener out there reading headlines, always look at that closely. We talking about existing? Are we talking about new build? You can learn a lot from that when you introduce new build data that introduces an awful lot of noise. For example, even when we look at prices, sometimes we want to exclude new construction. So why is that? Why do we want to focus on existing a lot? Well, because new build can introduce a lot of aberrations to the market. For example, the size of new build properties has dropped substantially the past few years, again, coming back to the central theme of affordability to help make a home more affordable. So we're not looking at same same when the square footage of a property drops a lot. And also, another thing that's been happening as a response to the lack of affordability is you have more builders building further and further out from a central business district where there are lower land costs for that new build property as well to help meet affordability. So the takeaway is, yeah, we want to be careful when we look at numbers. Are we looking at existing? Are we looking at new? Are we looking at overall properties.   Kevin Bupp  16:22   If you believe that if rates come down, we really is that the is that the lever that has to be pulled in order for that transactional volume to kick back up and, you know, make homes more affordable for the average home buyer,   Keith Weinhold  16:34   yeah, it's certainly going to help. I mean, really lower rates is the most likely significant lever that can help with the affordability crisis. Prices are pretty firm. Home prices are up 2% year over year. It's difficult for home prices to fall. In fact, home prices have only fallen one time substantially since World War Two. A lot of people don't realize that. So home prices are firm. I expect them to stay firm. And then the other lever is if we get a huge surge in wage increases, which I really don't expect anytime soon, unless we have another really big bout of inflation. So to your point, yes, lower mortgage rates like, that's the biggest lever that can help affordability return. And to speak to mortgage rates, Kevin and help put all of this into perspective, including this affordability component, is the fact that today, mortgage rates are low, and that gives a lot of people pause. They're like, What are you talking about? Mortgage rates were 3% even as low as two point some percent, just as recently as 2021 and early 2022 What are you talking about? Like, mortgage rates are 2x to 3x that today we look at a long term perspective when we look at the arc of mortgage rates, instead of in setting up expectations where we think rates could go. And we need to look at a frame of reference. Mortgage rates peaked over 18% in 1981 that's if you had a good credit score and everything on a 30 year fixed rate mortgage. That's what we're talking about here. In fact, Freddie Mac, they're the ones that have the best, most reliable stat set for mortgage rates, and that goes back to 1971 the average mortgage rate since 1971 all the way up to today, through all these presidential administrations you know, Nixon and in the Reagan years, and Clinton and the bushes and Obama, everything You know up to today, from 1971 until today, the average 30 year fixed rate mortgage is 7.7% so that's why I talk about how mortgage rates are, you know, moderate to a little low today. That takes a lot of people back. I don't see any impetus. It's going to get us back to, say, 3% mortgage rates. So some real perspective here.   Kevin Bupp  19:06   Yeah, yeah, no. And, you know, the interesting thing again, you might have data points on this to see, is a lot of the lack, do you feel that a lot of the lack of transactional volume is also related to those folks that have locked in, you know, 3% you know, mortgages, right? Like they're they, why would they sell and ultimately trade into a, maybe a, you know, a, you know, upgrade of a home, but ultimately be paying significantly more than that of what they're paying at the present time, you know, double the cost of capital. Your rates today, 30 year, rates are where the six and a half, 7% range, I don't follow it, but yeah.   Keith Weinhold  19:42   I mean, as of today, 6.3% is is where they're at. But yeah, you have a lot of those homeowners locked in to low rates. I mean, first, if we just pull back and look at the overall homeowner landscape, four in 10 have a paid off property. So just to talk to those about the other. Or 60% that percentage that are mortgage borrowers, among borrowers, 70% still have a mortgage rate under 5% meaning it starts with a four or less. So yeah, you're bringing up astutely Kevin the lock. In effect, people are reluctant to sell and give up that rate to trade it for a higher rate. And here's what's interesting, a lot of people if they couldn't make the payments on their home and say they lost their home, something that actually happened a lot in 2008 when people were locked into in sustainable mortgages because they didn't have good credit and they didn't have good income, the borrower is in good shape today. But even if, for some reason, they couldn't make the payments on their home, and they lost their home and they had to rent. Rents are actually higher in many cases, than what that mortgage principal and interest payment is. Maybe even the mortgage principal interest, taxes and insurance that they pay today are lower than what comparable rent would be, and this helps stabilize the housing market, people are really motivated to make their payments, and they can easily do it when it is so low, speaking to that lock in effect, and we're bringing up another reason now why transaction volume is so low, that lock in effect. So homeowners are in good shape. Their payments are sustainable. They don't want to sell, and they're just staying put. They're staying in place   Kevin Bupp  19:42   tying that all back around. Keith, what does that mean for us real estate investors? I mean, is there still good value out in the marketplace? I mean, is the rent to value ratio still, you know, Is there good opportunity to be had, as far as ROI for an investor that wants to buy into a residential investment or a multifamily investment, or anything related to that of residential housing?   Keith Weinhold  19:42   Well, the deals in the one to four unit space, single family homes up the four Plex buildings, yeah, just are not as good as they used to be. The ratio of rent income to purchase price is lower than it was five years ago. And that's so simple, but that's just really the simplest formula for profitability for a real estate investor, you don't have to look at cap rate or or NOI in the one to four unit space. Let's just look at that ratio of rent income to purchase price. 20 years ago, it was easy to find a full 1% meaning, on a 200k property, you could get $2,000 worth of rent income. That's that 1% ratio. But now oftentimes you've got to find something that's more like seven tenths of 1% that would be a $1,400 rent on a 200k property. So that simple formula, and I love that, the rent income divided by the purchase price when I'm looking at properties, when I'm scrolling or scanning like that's a calculation you can do in your head. It's only if I would see a ratio that appears really good, oh, that I would like drill down and look at that property more closely. So of course, when you have something that is that simple, though, rent income divided by purchase price, there's a lot of things that doesn't tell you. You know, what kind of mortgage interest rate can you get? What kind of property tax Do you pay in that jurisdiction? But really, I love the simplicity. That's it, rent divided by price, but it has been under attack. Now today, I still don't know where you're going to get a better risk adjusted return than you do with a carefully bought income property with a loan. I've always liked fixed interest rate debt the best risk adjusted return anywhere. I really don't know of a better one than with buying real estate, because real estate investors have so many profit centers, five simultaneous profit centers, which few people understand. Yeah.   Kevin Bupp  19:42   So using that, I want to, I want to unpack the the 1% rule a little bit for those that aren't familiar with it. And again, there's a lot of variables there, as you had mentioned, you know, mortgage rate, taxes, insurance and that respective market that you that you're buying in, and so what? What are you really trying to back into when applying that rule? Is there? Is there? Is there a true cash on cash return that you're hoping to achieve, again, assuming all these other variables that we just don't know, what they are at this point, you know? Is there a target range of actual ROI that you're actually looking to achieve when applying that 1% rule?   Keith Weinhold  19:42   No, I'm just looking for any positive cash flow. You know, to your point, yeah, there's nothing like the cash on cash return needs to be at least three and a half percent or something like that. But, yeah, I still like buying a property that's that's greater than a break even. Inflation is probably going to increase your cash flow over time, even if you bought a property that that broke even or just had a trickle of cash flow or a $100 cash flow today, a lot of people don't understand that fact that right there you can't count on it, you shouldn't count on. Getting rent increases. But we all know it generally happens over time at a rate of about 3% a year, but it actually increases your cash flow. If you increase your rent 5% your cash flow can often increase something like 12% why is that? How could that happen? That's because, you know, it's key for the person that was listening closely, you get fixed interest rate debt, so your rent income goes up, your expenses increase, except for that mortgage principal and interest. Inflation can touch it. It's kind of like a mosquito buzzing against a window and always trying to get in. And inflation can't touch that in a way. It's sort of like debt that's an asset in some unusual way, or some play on words, getting that debt so So yes, you can't count on rent increases over time. We know what typically happens, and that's really part of the compelling value proposition of buying income property with a loan. You're sort of leveraging inflation. You're really on the right side of it.   Kevin Bupp  20:08   Are there any particular markets that you feel are ripe for opportunity today where you're spending your focus and energies in?   Keith Weinhold  20:08   Yeah, it's still in high cash flowing markets like Memphis, okay, little rock and a good part of the Midwest and the Midwest still has home prices appreciating faster than the national average as well. So those are some of the areas that I like. Those jurisdictions also tend to have laws, as your listeners might know this already, Kevin, they tend to have laws that benefit the landlord more so than the tenant, where you can get a prompt eviction, but those are still the areas where you do get that high ratio of rent income to purchase price on a single family rental home, you might still find eight tenths of 1% meaning $800 worth of rent for every 100k of property purchase in places exactly like that.   Kevin Bupp  20:08   I was hoping that you tell me 1% rule would is applicable.   Keith Weinhold  20:08   It's pretty rare. You know, if you do see, if you do see a property that has a full 1% rent to purchase price ratio, it could be in a sketchy area, you need to make sure that you can actually get the rent in like you would get a respectful rent paying tenant in there. That's something that we would have to look at more closely.   Kevin Bupp  20:08   Have you explored building new product? Is there an opportunity there getting at a lower basis by building ground up?   Keith Weinhold  19:42   You asked such a smart question. This is actually the first time ever, as long as I've been an active real estate investor, Kevin for more than 20 years where new build purchases for income property make more sense than existing purchases. Why is that? It's because builders know that investors and borrowers are struggling to buy and afford property and make the numbers work. Like you're talking about, that builders are incentivized to buy down your rate. For you, to buy down your mortgage rate, we deal with a lot of providers that buy down your mortgage rate to 5% or less for you, and this is a fixed, long term loan in order to help get the numbers to work. You know, especially where you might see a new build property where the rent to purchase price ratio is less than seven tenths of 1% and it's just like, ah, the numbers wouldn't work paying a higher mortgage rate, but some are willing to buy them down to as little as four and a half. However, if you're looking into buying a new build income producing property, you do want to look at that closely. Who is paying for the discount points to buy down the rate. Is it the builder, or is it you? Because some builders just suggest, hey, you can buy down. You can have your rate bought down. But yeah, the next question is, yeah, okay, who is actually doing the buy down? Yeah.   Keith Weinhold  19:43   I mean, just getting tacked on. I mean, in that instance, I'm assuming that a lot of it's just getting tacked on to the to the back end of the purchase price, or it's being baked into closing costs somewhere somebody is paying for it. More than likely the borrower is paying for it. Paying for it. Is that? Is that? Again, I'm assuming we probably have that here in Florida. Again, I don't really follow the residential market too much, but there's, as you had mentioned, like, kind of on the the outskirts of Tampa, the tertiary, necessary, tertiary, probably more secondary areas. That's where a lot of the builds are happening. Lots of these, you know, planned subdivisions. You know, hundreds and 1000s of homes being put up. And in my understanding, through the grapevine, is I hear that they're, you know, sales volumes is incredibly slow, and a lot of these builders are now offering some creative loan products, again, to what you've just stated there, to attract, not necessarily even just homeowners, but also investors, to come in and buy their product from them. Is, is there a real opportunity there, though? I mean, have you seen investors be able to benefit from buying brand new product at a fair price, with economics at work keeping as a rental?   Keith Weinhold  29:53   I have and Florida has some builders that are almost desperate. I'm a long time investor. Know personally, directly in Florida, income property, Southwest Florida, places like Cape Coral, they have been ground zero for real estate depreciation, a contraction in real estate values year over year of 10% or more in some southwest Florida markets. So like the post pandemic, migration boom is certainly over in Florida. And you know, Kevin, as little as 10 years ago, people used to talk about buy in Florida. It's cheap, it's sunny, cheap and cheerful, like you would sort of hear that sort of thing about Florida real estate. That is no longer true. Florida just is not as cheap as it used to be. It's the same or higher than the national median home price now in Florida. So yes, some builders are rather desperate. The other benefit of buying new build, especially in a place like Florida, where a lot of new building has taken place and the supply actually exceeds the demand here in the short period. You can take advantage of that, not only by getting the rate buy down, but because homeowners insurance premiums are substantially less on new build property, because they're built to today's wind mitigation and other standards than they are existing property. I have a friend that just bought a new Florida duplex through us in Ocala, Florida. That's sort of a central, North Central Florida, on that new build duplex that he paid 400k for. I saw the actual insurance premium, the the rate sheet, $694.06 $694 694 so the benefit of buying new build is you get a lower insurance premium. You get these rate buy down. Sometimes what your builder will buy for you make for you rather and of course, you're probably going to have low maintenance costs for a long time, since it's a new build property, and you get a tenant that is probably going to stay longer than the average duration. They're the first person to ever live there. It's difficult for the tenant to improve their housing situation when they have a new build income property, unless they would go out and buy, and it's a very difficult time to go out and buy. So through that lack of affordability, really, the advantage for a real estate investor is tenants are staying put longer. The average tenancy duration is up because they can't run out and be a first time homebuyer.    Keith Weinhold  32:32   You know, most people think they're playing it safe with their liquid money, but they're actually losing savings accounts and bonds don't keep up when true inflation eats six or 7% of your wealth. Every single year, I invest my liquidity with FFI freedom family investments in their flagship program. Why fixed 10 to 12% returns have been predictable and paid quarterly. There's real world security backed by needs based real estate like affordable housing, Senior Living and health care. Ask about the freedom flagship program when you speak to a freedom coach there, and that's just one part of their family of products, they've got workshops, webinars and seminars designed to educate you before you invest. Start with as little as 25k and finally, get your money working as hard as you do. Get started at Freedom, family investments.com/gre, or send a text. Now it's 1-937-795-8989, yep. Text their freedom coach directly. Again. 1937795898, 77958989   Keith Weinhold  33:44   the same place where I get my own mortgage loans is where you can get yours. Ridge lending group and MLS, 42056, they provided our listeners with more loans than anyone because they specialize in income properties. They help you build a long term plan for growing your real estate empire with leverage. Start your prequel and even chat with President chailey Ridge personally while it's on your mind, start at Ridge lending group.com that's Ridge lending group.com   Todd Drowlette  34:17   this is the star of the A and E show the real estate commission. Todd Rowlett, listen to get rich education with my friend Keith Weinhold, and don't quit your Daydream.   Kevin Bupp  34:38   That even trickles down to the to the space that we're in. We're in the mobile home park space. And while we don't have a lot of rentals inside of our portfolio, most of our residents own their home and they rent the land, but throughout our portfolio, we have roughly 400 units that we own that we have as standardized rentals, and we've noticed that trend as well. Historically. 10 years ago, you. Yeah, we track actually about, I can take it back about eight years, where we actually have data to support this. This claim is that our average renter would stay about 16 months. That was fairly standard. Whereas today it's over, it's nearly three years. At this point in time, the majority are staying nearly three in there's probably, there's some variables in there. You know, eight years ago, we weren't bringing a lot of new product into our communities, whereas a lot of the mobile home parks that we purchased today do have a lot of newer mobile homes in them. So again, to your point, it's, it's a it's a newer home. It's fresh. There might not be the first person that lived there, maybe they're only the second, right? But it's still a very new home. It's only a couple years old. All the appliances are new. It's fresh, you know, it's well insulated, and it's just a high quality product, but, but it's nearly double of what we used to experience and what we used to underwrite. It's, you know, which is, which is interesting. You know, I am, I want to, I want to circle back, you'd mentioned Cape Coral. I've got quite a bit, quite a bit of experience with Cape Coral. This is not the first time that Cape Coral and Port Charlotte in those areas have crashed. I mean, like, they've got quite an interesting history in time, back during the GFC, that area down there took probably one of the biggest hits in most of Florida, while, you know, the rest of Florida got, you know, pounded pretty hard with home values and decreasing home values decreasing rents, Port Charlotte, Cape, coral, in those areas as well. It's just It looks very different down there today. As far as you know, the job basis. I mean, there's a little bit more of a, you know, you know, an economy than what existed maybe 1015, years ago. But I don't know if you know the story of Port Charlotte. Is it some interesting history that you can if you want to spend some time, go on YouTube. There's some documentaries out there about, basically when that area was created. There's a two brothers that, essentially, you know, sold, subdivided and sold swampland and sold the dream to the northeast centers to come down and buy, you know, parcels of land down in Cape Coral, port, Charlotte and in that general area. And it took a lot of time for it develop over the years, but it's a beautiful area down there. But again, I think what happened to your point? A lot of folks during the covid era were wanting to come to Florida. We were fairly free down here. The sun was shining, you know, the Gulf of Mexico was warm, and that was a good value for a lot of folks. You know, the values were driving up there. Was home inventory down there. You got a good bang for your buck back at that point in time. But again, there's not, there's not as much as many amenities and supportive economy there. And then to me, there, like you might find in the Tampa area, or you might find Orlando, or even Ocala cow is a phenomenal market right now. And yeah, oh, Cal is, for those that don't you know you mentioned, you referenced the insurance there, which is, that's a great, that's a great price for that, that policy, you know, 700 bucks, basically, that is inland. For those that don't know the geography here in Florida, that is inland. So you are fairly protected from storms, you know, hurricanes and things of that nature, which crush us here on the on the Gulf Coast. But in any event, I just thought I'd share that there's some good, pretty cool documentaries out there in Port Charlotte, in the whole area down there, but a beautiful part of the country. But just Yeah, it's, it's suffering right now. There's, I think there's, I was looking the other day on Zillow. I just play around and check and see what waterfront home prices are going for. And down there, you can basically get a you can get a canal front home going out to the Gulf of Mexico for about $500,000 which was probably closer to 800,000 during, you know, the the boom era of 2021 2022 So historically, we used to buy properties down there. This is back in 2000 and 345, before the the GFC, we could buy those same properties for 150 and $200,000 waterfront home, waterfront homes, deep water canals going out to the Gulf of Mexico. But when it crashed, some of those homes were selling for $120,000 $100,000 so it's interesting to see how things have come kind of full circle multiple times, not just down there, but in all of Florida as well. Florida is always boom and bust. You know, I think they say that with you know, you could probably speak to that most of these coastal towns, whether it be in Florida, whether it be up the eastern seaboard, the coastal markets are definitely more of a roller coaster ride than the Midwestern markets, where you invest in would you? Would you agree with that?   Keith Weinhold  39:09   Yeah, I would. And yeah, you talk about Florida being a boom and bust, and what you said is certainly true in the shorter term. Back in the global financial crisis, we saw more price blood letting in Florida than we did in other states as well. But over the long term, the long arc, I'm bullish on Florida because of just the obvious constant in migration story. In fact, if you go back to decennial censuses, all the way back to the early 1800s every single decennial census, every 10 years, the population of Florida has rose, and it rises faster than the national average, almost all of those 10 year periods. So yeah, over the long term, I certainly like Florida, but Yeah, you sure can, you know, nitpick over the. Short term, but as little as five years from now. If you bought today, as little as five years from now, I could see someone saying, like, yeah, I bought back five years ago, because we're actually in a in a short term, overbuilt condition, and builders bought down my rate. For me, this could look savvy and this could look wise. So if you're looking for opportunity, new building Florida is definitely something to look into.   Kevin Bupp  40:22    I agree. No, absolutely. Like, the long term, you know, opportunity here in Florida, it's there, you know, it's interesting. We've got the we get these hurricanes every year. Last year was a pretty impactful year, at least here on the on the Gulf side, and the neighborhood I lived in, we got flooded. Luckily, our homes in newer builds built up. But, you know, 70% of the neighbor I lived in had 444, or five feet of seawater. And as did the, you know, the long stretch of the Gulf Coast here, and it was the first time this area has ever this immediate air right where we live, has ever had a it wasn't even a direct hit. It just happened to be a massive storm surge. But it was, you know, catastrophic as far as the damage that it did. And a lot of folks that we knew in our neighborhood here. Have lived here for 1020, 3040, or 50 years, and they had never had any floodwater whatsoever. And and there was two camps where they fell in either one camp where they didn't, they whether they had the money to rebuild or not, didn't matter. Like, mentally, they were never going to end up. They were never going to deal with that again. They were moving away, like they just didn't want to go through the heartache of that again. In the second camp, we're basically, I knew it was going to happen at some point in time. This is the kind of price to live, to pay, a live in paradise and and what ultimately occurred is, you know, you saw homes going up for sale, and in the initial chatter for those that that were impacted, is that, who's going to buy that? You know? You know, they're not going to get hardly anything for it. You know, it's just like, who's going to want to live here now that has been flooded. I said, Just wait. I'll say people have us as human beings, have short term memories. We do and and I can promise you, within a few months, those homes will be gobbled up, some will be knocked down, some will be rebuilt, but inevitably, the prices will come back incredibly strong, and you'll see very limited inventory, at least in desirable markets that are here on the water. And that's exactly that happened. Within six month period of time, prices are back up. You can't get your hands on a flooded property now, or one that had been flooded, right?   Keith Weinhold  42:12   I can believe it. And this is not the way that you want to have a waterfront property when the water inundates you and comes to you, that is not the way to buy waterfront property.   Kevin Bupp  42:23   Yeah, interesting, but, uh, no, Keith has been a fun conversation, my friend. So let's, let's talk about, you know, I like to you'll peek inside your brain if you were going to start all over again, from scratch, you know, you've been at this now, what? How long? Almost two decades. It's been, been quite   Keith Weinhold  42:38   Yes, yes, more than two decades. Is that what you're asking, how would I start, starting from today?   Kevin Bupp  42:47   Yeah, like, what would you do? Where would you focus, what asset type and any particular strategy outside of what you're doing today? You know, where would you focus your time?   Keith Weinhold  42:55   Actually, it is quite a coincidence. The way that I would start all over again in real estate is the way that I did start in real estate. It worked out phenomenally, in a way it makes sense, because if it hadn't worked out phenomenally, you never would have heard of me, and I wouldn't have become this real estate thought leader or whatever, because this is a way, an everyday person with virtually no real estate knowledge and very little money. Can start out, what I did is I made the first ever home of any kind, a four Plex building where I lived in one unit and rented out the other three. This is something very actionable for your for your audience as well, Kevin. Or if maybe you're a listener that has a an adult daughter or son and they want to get started in real estate with a bang without much money, is to buy a four Plex, just like I did. You can use an FHA loan, a three and a half percent down payment. You have to live in one of the units at least 12 months, and at last check, your minimum credit score only needs to be 580 now you will get a lower interest rate if you have a higher credit score. But those are the only three criteria you need. I mean, what a country talk about? The American Dream. You can use that FHA program with a single family home, duplex, triplex or fourplex, that's the formula. That's how I began. Actually ended up living there a little more than three years. But what that did for me was remarkable, and in fact, you know what it taught me? Kevin and every listener can benefit from this. It's paradoxical. A lot of times I say things that you would not expect to hear that make you go, wait what? Whoa, how can that be? Is what it taught me is that I don't want to focus on getting my money to work for me. You probably wouldn't expect to hear that. It's actually a middle class paradigm to say, well, I don't want to work for money. I also want to get my money to work for me. I'm telling. You that that's going to keep you middle class, or worse, that's going to keep you working until old age, and you won't have an outsized life and retirement and options. If you think that the best and highest use of your dollar is getting your money to work for you, it's not what's the paradigm shift if this four Plex building taught me the way I started out, which is still the way that I would start out today, and you probably heard this before, but I'm going to put a new twist on it. Is you want to ethically get other people's money to work for you, and we can be ethical. We can do good in the world. Provide housing that's clean, safe, affordable and functional. Never get called a slumlord that way. You can employ other people's money three ways at the same time, ethically by buying an income property with a loan, like we've been talking about in Florida, or with this fourplex building. How do you do it three ways at the same time, using the bank's money for the loan and leverage, which greatly amplifies your return beyond anything Compound Interest can do. The second of three ways you're ethically employing other people's money is you're using the tenants money to pay for the mortgage and some of the operating expenses on this fourplex. And then the third way you're simultaneously using other people's money is using the government's money for generous tax incentives at scale. So the lesson is that the best and highest use of your dollar is not getting just your money to work for you, it's other people's money, in this case, the banks, the tenants and the governments. That's what you can do. I mean, what an opportunity. A lot of people just don't even know about that FHA program.    Kevin Bupp  46:41   Yeah, I actually, I wasn't, I wasn't aware that it was that low of a down payment key. That's no idea. Three and a half percent, you said, a 550 credit score, believe me, 580 minimum credit.   Keith Weinhold  46:51   And you have to, thirdly, you have to owner occupy a unit for at least 12 months. And hey, I'm not saying it's always easy. You know, you got to think about that. Your neighbors are also your tenants. And I don't know how to fix stuff. I still don't. I'm a terrible handyman, but it's good to learn a little about about human relations. And you know, letting finding a general way to let the tenants know that you have a mortgage to pay every month. I mean, just that alone can can help them ensure timely rent payments. But, and this also doesn't mean every area, or every four Plex building is is good, but, yeah, that's the opportunity. That's how I started. I would totally do it again.   Kevin Bupp  47:27   Can you use that FHA program more than once? Or is that just the one time you know your first, first, first primary home purchase?   Keith Weinhold  47:34   It's generally you can only use one at a time. There are some exceptions, like if you and your job move, like, a certain mile radius away from where you got the first one, but, yeah, generally it's only going to be one at a time. A lot of people don't use it. Don't know about it. In fact, if you have VA benefits, Veterans Administration benefits, you can get a similar program, like I was talking about, but zero down payment, rather than three and a half with an FHA loan. It's a really good, amazingly good opportunity.    Kevin Bupp  48:05   That's incredible. That's incredible. Keith, my friend, I appreciate you coming back going. It's always good to catch up with you. Good to see that you're doing well.   Keith Weinhold  48:17   Oh yeah, a terrific chat there with Kevin. I hope that you like that really. At our core, real estate investors are not day trading. We are decade trading. Now I'm in western New York today, at the other end of the state, NYU compiled some terrific statistics that you want to hear about for nearly the past 100 years. It is the annualized returns of six major asset classes. This spans, the Great Depression, a number of recessions, World War Two, the New Deal, gold standard, abandonment, brendawoods, the Cold War, Civil Rights Movements, oil shocks, Volcker rate hikes, the.com boom and crash, the 911, attacks, the housing bubble, covid, 19, AI revolution and 16 presidencies, all those ups and downs and war and peace and economic booms and economic lows, and now there is going to be a mild tongue in cheek element here, because stats like this drive real estate investors crazy, but this is often how mainstream media portrays asset class comparisons. All right, the six asset classes are stocks, cash, bonds, real estate, gold, and then inflation, which isn't in an asset class, but it's a benchmark. All of these begin from the year 1930 so spanning almost 100 years. Let's take it from the lowest return to the high. Best return the lowest is inflation. And what do you think the CPI inflation rate is averaged over the last 100 years? Any guess at all? You might be surprised. It is 3.2% Yeah, even though the Fed's CPI inflation target has long been 2% it runs hot longer than most people believe. So therefore, today's inflation rate isn't high, it's just normal. The next highest return is cash at 3.3% How did NYU measure that the yield from three months T bills? Next up is bonds. They returned 4.3% that's the 10 year treasury average of the last 100 years. The next highest is real estate at 4.7% that uses the K Shiller Index. Now we're up to the second highest. It is gold at 5.6% and the highest is stocks at 10.3% using the s, p5, 100, and this was all laid out in a brilliant chart that also shows the returns by each decade for all of these asset classes. You'll remember that I shared the chart with you in our newsletter a few weeks ago. Now you are smarter and more informed than the layperson is, you know, but they see this chart and they think, Oh, well, that's it. I've got my answer. Real Estate's 4.7% appreciation loses out to gold's 5.6 and stocks 10.3 and then they go back to watching Love is blind. But of course, rental property owners like us know that we often make five times or more than this 4.7% when we consider all those other income streams and profit centers, leverage, rents, ROA and inflation, profiting on our debt, it's often 25 to 30% total. It's sort of like judging a Ferrari by only measuring its cupholders or something. Now, would stocks 10.3% get adjusted up as well? Yeah, probably a little, because the s and p5 100 currently averages a 1.2% dividend yield, so that might be added on the 4.7% return for real estate. That cites the popular Case Shiller Index. And the way that that index works is that it uses a repeat sales methodology. So what that means is that the Case Shiller measures the sales price of the same property over time. Therefore a property would have to sell at least twice in order to be measured by this popular and widely cited K Shiller Index. So then the 4.7% appreciation figure excludes new build homes, and new builds appreciate more than existing homes, but you do have more existing homes that sell the new build homes, so we can pretty safely assume that real estate's long term appreciation rate is higher, likely between five and 6% there it is. So yeah, making comparisons across asset classes like this is pretty tricky, because investment properties leverage and cash flow gets nullified. And when you make comparisons like this, it's a big reminder that even if you can't get much cash flow off a 20 or 25% down real estate payment, sheesh, most people put a 100% payment into stocks, gold or Bitcoin, and they don't expect any cash flow. And Bitcoin isn't part of what we're looking at for this century long view, because it did not exist until 2009 and also NYU had to use some alternative statistics. Sometimes the s, p5, 100 index only came into being in 1957 and the Case Shiller Index 1987    Keith Weinhold  54:02   next week here on the show, I expect to answer your listener questions from beginner to advanced. You've been writing in with some good ones for the production team here at GRE. That's our sound engineer, Vedran Jampa, who has edited every single GRE podcast episode since 2014 QC in show notes, Brenda Almendariz, video lead, brendawali strategy talamagal, video editor, seroza, KC and producer me, we'll run it back next week for you. I'm your host. Keith Weinhold, don't quit your Daydream.   Speaker 3  54:36   Nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of get rich Education LLC, exclusively.   Speaker 2  55:04   The preceding program was brought to you by your home for wealth building, get richeducation.com  

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Welcome to Contemplations with me, Hardeep Kaur. Today we are contemplating Dante Gabriel Rossetti's The Day Dream."The Day Dream is not only about a love shared by Jane Morris and Rossetti. It's about the condition of contemplation, and the transformation that occurs when we swap pace for pause."If you're ready, let's contemplate.HProduced by: ⁠⁠⁠⁠perse.london⁠ ⁠⁠⁠ x ⁠⁠The Architecture of Contemplation⁠⁠Voice + Contemplation: Hardeep Kaur⁠⁠⁠⁠@hardeep.earth⁠⁠

Keith discusses seven ways to get a lower mortgage rate, emphasizing the historical impact of the 1940s GI Bill on homeownership and wealth creation.  Caeli Ridge, founder of Ridge Lending Group, digs into smart tactics like adjustable rate mortgages, DSCR loans, and down payment options, plus insider tips on boosting your creditworthiness, timing your rate lock, and planning ahead so you can maximize your returns.  They also explore trends like 50-year mortgages and portable mortgages, and the benefits of FHA and VA loans for first-time buyers.  Resources: Want expert guidance on your next real estate investment or mortgage? Reach out to Ridge Lending Group for personalized support and a full range of loan options—whether you're a first-time buyer or seasoned investor. Visit ridgelendinggroup.com or call 855-74-RIDGE to take your next step! Episode Page: GetRichEducation.com/582 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com GRE Free Investment Coaching: GREinvestmentcoach.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  For predictable 10-12% quarterly returns, visit FreedomFamilyInvestments.com/GRE or text  1-937-795-8989 to speak with a freedom coach 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— GREletter.com or text 'GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript:   Keith Weinhold  0:01   Welcome to GRE. I'm your host. Keith Weinhold, seven ways you can get a lower mortgage interest rate. We'll break them down loan types available to you that you never heard of, and learn how the 1940s GI Bill shaped the mortgage that you get today on get rich education   Speaker 1  0:22   Since 2014 the powerful get rich education podcast has created more passive income for people than nearly any other show in the world. This show teaches you how to earn strong returns from passive real estate investing in the best markets without losing your time being a flipper or landlord. Show Host Keith Weinhold writes for both Forbes and Rich Dad advisors, and delivers a new show every week since 2014 there's been millions of listener downloads of 188 world nations. He has a list show guests include top selling personal finance author Robert Kiyosaki. Get rich education can be heard on every podcast platform, plus it has its own dedicated Apple and Android listener phone apps build wealth on the go with the get rich education podcast. Sign up now for the get rich education podcast, or visit get rich education.com   Corey Coates  1:07   You're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education. You Keith,   Keith Weinhold  1:23   welcome to GRE from the Romanian Black Sea to the Egyptian Red Sea and across 188 nations worldwide. I'm Keith Weinhold, and this is the indefatigable get rich education before we discuss the seven ways that you can get a lower mortgage rate and more in the 1940s before my dad was born, the GI Bill gave veterans returning from World War Two access to cheap home loans, and that single policy decision might have done more to shape the modern American Housing landscape than Anything else in the last 100 years. Think about it, millions of young men, almost kids, really had just spent the better part of their early adulthood in Europe or the Pacific. They came home, married their sweethearts, started families, and suddenly America had this booming demand for housing, but demand alone doesn't build homes. You also need money. You need access to credit, and that's where the GI Bill stepped in. It didn't just thank returning service members for their sacrifice. It handed them something way more powerful, the ability to buy a home with little money down a low interest rate and underwriting standards that would frankly look like a fantasy today, that access to credit sparked one of the biggest housing booms in American history. You had these entire suburbs that sprang up overnight, Levittown in New York, Lakewood in California. These were master planned communities, and they really became a blueprint for Post War America. We had the booming 50s, and this had a lot to do with it. Here's the part that most people don't understand. This wasn't just about housing. This was about wealth creation, because for better or worse, home ownership has been the primary wealth building vehicle for the American middle class these past 100 years, when you give millions of people a subsidized path into property ownership, you're not just giving them a roof. You're giving them equity appreciation, leverage, tax benefits. You're giving them the engine, this flywheel that spins up generational wealth in a lot of ways. The GI Bill is the earliest institutional example of what I at least tell you here on the show, real estate pays five ways. Now they didn't call it that in 1947 but that's exactly what it was. Veterans earned appreciation as suburbs grew. They had amortization working for them, they collected tax advantages. Inflation slowly eroded their fixed rate mortgage balances too. And here's the thing, these weren't even speculative investments. They were homes that they lived in. Now, of course, the GI bill wasn't perfect. It expanded opportunity for millions of people, but it excluded a lot of people too. Lenders and local governments often blocked black veterans and other minorities from accessing the same benefits. That's a whole story unto itself, but the takeaway for today is, when you combine demographic momentum with favorable financing, you can remake a nation, and that's why housing policy still matters today, which we'll get. Two shortly, when you change access to credit or just tweak it, you change the trajectory of families and markets for generations, and the GI Bill proved that. So when we talk about interest rates, affordability, supply shortages, or any of the high frequency housing data that we cover here, remember that the stories aren't just about numbers. They really are about people. They're about giving ordinary Americans the chance to build wealth the same way that those World War Two veterans did through ownership, stability and the quiet compound leverage, not compound interest. Compound leverage that real estate delivers over time.    Keith Weinhold  5:49   I'm bringing you today's show from, I suppose, a somewhat exotic location. I am inside Caesar's Palace, which is right near the very middle of the famed Las Vegas Strip, that's where I'm at. The hotel staff is always accommodative of the show setup. This might seem a little strange to you, because I'm not a gambler. The reason I'm here is that my brother lives 25 minutes away, and I've been with him during Thanksgiving. Next week, I'll bring you the show from Buffalo, New York, and then two weeks from now, I have something heart warming to tell you about that, and it is a real estate story. I'll be broadcasting the show from upstate Pennsylvania. I'll be there to visit my parents. My brother's also coming in from Nevada to be there. That's where the four of us, mom, dad, my brother and I will sit around the same dining room table in the same kitchen of the same home that my parents have lived in since the 1970s nothing has changed, and all four of us know our spots at the table. And actually, it's not even called the dining room table. It is the supper table, as my parents call it so, from flashy Caesar's Palace today to Buffalo and then to Appalachian simplicity in Pennsylvania, the stability and continuity of my parents living in the same home and four wine holds sitting around the table during the holidays, it is so rare. I imagine less than one or 2% of people can do this. I'm just profoundly grateful and proud of Kurt and Penny Weinhold for being the best, most stable parents I could have asked for. It's almost too much to ask, and if you don't have that in your life. Ah, you can do something about that. You can provide the same decency and stability for your children.    Keith Weinhold  7:50   Let's talk about seven proven ways you can get a lower mortgage rate with this week's terrific guest. Though, we'll focus on investment properties. A lot of this applies to primary residences as well.   Keith Weinhold  8:07   We are joined by the founder of the lender that's created more financial freedom for real estate investors than any other mortgage originator in the nation, the eponymous Ridge lending group. And though that sounds impressive, my gosh, she didn't even need that introduction for you the listener, because she's one of the most recurrent guests in show history. Welcome back to GRE Caeli Ridge,   Caeli Ridge  8:30   I am delighted to be here as always, Keith, thank you for your support and acknowledgement. I love what you do, and I'm hoping that I can bring more value today to your listeners in what it is that we do, educating the masses, right?   Keith Weinhold  8:42   You've been doing that here for about 10 years. And yes, we're talking about a woman with a reputation for writing emails in all caps, yet still maintains a great relationship with everybody. I mean, congrats, shaile. I couldn't possibly pull that off myself.   Caeli Ridge  8:58   Thank you, Keith. And you know, I'm going to stay by my all caps, man, it's a speed thing. It all boils down to the number of seconds in the day that I can just move quickly through an email. Yeah, I love my all caps.   Keith Weinhold  9:09   Apparently recipients are still replying, well, you can get a lower mortgage rate in at least seven ways. You can get an adjustable rate mortgage, do a midweek lock in, negotiate seller credits. Have a high credit score. Do a two one buy now, which is kind of old school, but some home builders are using it boost your DTI or buy now, not later. Those are some of the strategies for lowering your mortgage rate. What are your thoughts with regard to that?   Caeli Ridge  9:39   I think all of those are viable. I would just say on the adjust for a mortgage. The pushback I would give there is, is that for residential property, specifically, single family, up to four units, we are not finding that spread between the arm and a 30 year fix. We've been the industry as a whole, secondary specifically been on the inverted yield. Now this gets a little tough. Nickel, and I won't go down that rabbit hole, but 08, 09, the housing and lending crash created an environment within secondary markets where an inverted yield has made a 30 year fixed mortgage more favorable in the rate department. Now that's not always going to be the case. I am a huge fan of the adjustable, but what would work right now is an adjustable with the all in one not to take too much time on that topic, but that would be an adjust rate mortgage that I think would save interest or reduce the rate of which interest is accruing,   Keith Weinhold  10:30   the all in one loan, which we discussed extensively back at the beginning of this year here on the show. Long term, though, I have seen adjustable rate mortgages work for a lot of people, because really, the compelling proposition of the arm is that it guarantees that you get a lower rate in the near term, and yet there's only a chance that you're going to have a higher rate in the long term   Caeli Ridge  10:53   and further. Let's I mean, let's dissect that a little bit. I am a huge proponent. I love an adjustable rate mortgage when the arm is pricing a half or a full percentage point plus over a fixed especially for non owner occupied and the reason for that is, and this is statistically speaking, feel free to look this up, guys, the average shelf life of a mortgage for an investment property is about five years. Great point, right? And we know that if that's the case, right, we're refinancing to harvest equity. We're refinancing maybe to reduce an interest rate from where the market was before, et cetera, et cetera. So that would be the first thing I would say. And then also remember, you guys the first 10 years of an amortized mortgage, 30 year fixed, amortized mortgage, how much of that payment is going to the principal? Because people will often push back by saying, well, either an interest only, or an adjustable and what happens if it changes or it goes up? Most of your payment is going to the interest anyway, and that reset to harvest equity. Borrowed funds are non taxable. We always say that, right? I think it's fully justified. So I love an arm, I just don't know, in comparison to a 30 year fixed today, like a five year ARM versus a 30 year fixed we are in a place that it makes sense, but normally, to your point, absolutely. Fan   Keith Weinhold  12:06   that spread needs to widen for the arm to make more sense. What about doing a mid week rate lock in? Is that a thing?    Caeli Ridge  12:13   Yeah. And you know, I don't have any empirical evidence here. Okay, I don't have any data points that actually prove this, except for 25 years in the business and locking loans every day of my life. There's something about a Monday and a Friday. And I have some conspiracy theories. I don't know that. I it's necessary to share them here, but midweek locks tend to be more favorable in both points and interest rate than you'll find on a Friday and a Monday. I think largely it has to do with, you know, the stock exchanges shutting down for the weekend, right? You got a Friday, you got two days in between. You got foreign markets, and all the things that can explode and happen during that amount of time. So I think they hedge a little bit. So on Friday, going into the weekend, I think that there's something about that and why interest rates are a little less favorable. And then Monday, of course, coming off the weekend, similarly, maybe there's some truth to that too.   Keith Weinhold  13:02   Now, negotiating seller credits has really been a trend to help with affordability. Tell us about specifically what you're seeing there, what's common.   Caeli Ridge  13:11   So we're talking to investors. I can tell you that the loan products you guys are going to have access to are going to cap you, okay, you're going to cap at, per guideline, 2% of the purchase price. Okay, remember that your points that you're paying when you get into locking an interest rate are going to be calculated on the loan size, all right. So the first thing to know is seller paid closing costs, maximum is going to be 2% per underwriting guidelines. That 2% is based on your purchase price. Anything that you're paying points for is going to be on the loan balance, the loan size, so there's going to be a little extra there for you that can contribute or can pay for some other closing costs, right, depending on the numbers. Now, if you're smart enough, or lucky enough, or whatever, the market is viable enough that you can negotiate more than 2% from the seller to pay towards closing costs, you're going to be limited on what you can do on the loan side. But let's say that you go and you've negotiated 4% seller will pay 4% towards your closing costs. Then in that case, you can reduce, you got the two points that you're allowed per guideline. And then you can reduce the purchase price by the difference you don't want to leave that money on the table.   Keith Weinhold  14:15   That's how it's done. And then there's just simply having a higher credit score. What's the highest credit score that really helps you get the lowest mortgage rate for both primary residences and non owner occupied properties. Loan product   Caeli Ridge  14:29   type dependent. But I would say overall, 760 and above is kind of that threshold. There are products that go 780 maybe even on the rare occasion, 800 and above. If I had to pick a number as the absolute pinnacle, I'm going to go 780    Keith Weinhold  14:41   All right, so having a credit score above those thresholds really doesn't help get you a lower interest rate. It's really just a little flex that you've got an 811, credit score, or whatever it is. Now the two, one buy down. That's something that we used to see long ago. A few home builders are bringing it back. And what that does it allow? Homebuyers to pay a lower interest rate for the first two years with the seller covering the difference, and that allows the seller to get their price. They don't have to lower the price of the home at all. But the two one buy down, and you see that written, two, one that has been employed more recently. Tell us about that.    Caeli Ridge  15:18   Well, the builders are struggling in some cases, right? The affordability buzzword is all over the place. So they've had to get creative and find ways in which they can move their inventory. So I think they've done a good job at kind of shaving off some of their margins to satisfy or improve the terms for the consumer. So I like the two. One, if you can get it   Keith Weinhold  15:37   now, one can boost their DTI as well their debt to income ratio and Taylor. When we've talked about that before, we've usually talked about reducing your debts in order to improve your DTI. However, a lot of people don't think about the fact that, oh, well, you can increase your income that lowers your DTI to help you qualify. So tell us what is the max DTI that you can have   Caeli Ridge  16:00   maximum debt to income ratio, in most cases on a full dock loan is going to be 50% now, depending on the type of income that you earn or that you've demonstrated, how you calculate that can get a little bit tricky. But if you're just a straight w2 wage earner, we don't have, you know, commissions or bonuses or anything that we consider variable income, then you just take your gross income times 50% whatever that number is, all of your liabilities on the credit report, we do not count ordinary living expenses like food and gas and utilities and cell phone bills. It's the minimum payments on the credit report. As long as whatever that add up is fits within that 50% you're good to go.    Keith Weinhold  16:37   Now, when it comes to improving our DTI to get a lower mortgage rate, I tend to think it's easier to knock out some debts to improve your DTI. But what about the other side of it? What about increasing your income to improve your DTI, lower your mortgage rate and qualify? Can you talk about some of the strategies for increasing your income with respect to DTI?    Caeli Ridge  17:02   Absolutely. And the biggest one, I think that we probably want to focus on most is going to be on a schedule E, right? That's the one that you're going to have more control over. So when we talk about rental income and how we might be able to boost that first, it might be important to share that there are two ways in underwriting that we will calculate or quantify rental income. The first way is called the acquisition year formula. I'll give you that in just a second. It's very easy, but the way I think we focus on here, because acquisition year is going to be what it is, you're going to have very little ability to manipulate or change that once our rental properties fall on our tax return, specifically the Schedule E of a federal tax return, you as the taxpayer or the borrower are going to have some access to maximize or increase the income, or, let's actually get a little bit more granular there to maximize the gain or minimize the loss, by means of depreciation, maybe a cost seg, maybe we make sure that one time, extraordinary expenses are demonstrated on the tax return in the appropriate way so that underwriting can add those things back. So I know that this sounds technical, but the scheduling is the way that I would say is the easiest for an investor to maximize income, reduce debt to income ratio. And I will close by saying that ridge lending, I think one of our most valued value adds is the ability to help our clients look at their draft tax returns on an annual basis and present them with, Hey, listen, Mr. Jones, if you file this way, this draft tax return, if it files this way, this is what it means to your debt to income ratio. Here's my advice, right? We go into a lot of depth there with our clients.   Keith Weinhold  18:39   That is a smart, long term planning piece that most mortgage companies are not going to give you. They're not going to be forward looking, looking out for your next three years of growing your income property portfolio. And shortly, we'll talk about a way for you to qualify loans where you don't have to show tax returns or W twos or pay stubs. But while we're talking about how to get a lower mortgage rate and some creative ways to do that, I brought up, buy now, not later. And what do I mean by that? What I mean is say, properties appreciate even 3% over time. Buying now, I mean that is going to net you more equity if you buy now rather than waiting, than it would in the savings from a rate drop, when you look at the appreciation run up, however, if rates go up, then you get both the lower price and the lower rate by buying now, not later.   Caeli Ridge  19:32   And I would add to that, we have to remember that in addition to a very modest 3% in the home appreciation, we should be appreciating our rents at even a modest 2% a year, right? Depending on where you are, et cetera. I know that there's exceptions to the rule. And then finally, we got to add in that tax benefit, what you're going to get in your deductions, et cetera, et cetera.   Keith Weinhold  19:51   Yeah, great point. Well, I brought up seven ways that you can get a lower mortgage rate. Can you share a few more with us? Some common ones? Because I know. That almost everyone that calls in there wants to inquire about mortgage rate as well.    Caeli Ridge  20:03   Everybody wants, yep, everybody wants to talk about the rate, despite my vervet opposition to say, do the math. Do the math. Do the math. You know, the easiest one there would be buying down the rate. I'm going to try and formulate an example. Let's say you've got a really high wage earner and in the thick of their earning years, and they're trying to prepare for retirement down the road. It's a longer term burn. They desperately need tax deductions, and the deal that they're looking at, yeah, it's okay, but they want some extra expenses on the Schedule E, maybe they buy the rate down by three even 4% because points on an investment loan transaction are tax deductible, so that might be something, and they obviously benefit from the lower interest rate. Now I may push back on this, and I think again, I know I sound like a broken record here, but we really need to do the math. What are we getting versus what are we giving up to get a 6% or five and a half percent interest rate? What does that mean in real, tangible cost, and what's that? Break even? It's actually a fairly simple calculation. When you just divide the difference in what you're getting versus what you're paying for, and that'll give you the number of months that it takes to recapture the incentive versus the expense. But that would be the easiest one. Keith, I would say buying down points, using paying additional points to get that lower interest rate,   Keith Weinhold  21:20   buying down your rate. It could feel good in the short term, but it's often not the best long term or even intermediate term move when you do the math, as you always like to say, well, you the listener here, you know that you can qualify for mortgage loans, for rental properties without needing a w2 without needing a pay stub and without even needing to show tax returns, because you need all those things for a conventional loan, but for a DSCR loan, debt service coverage ratio, you don't. So talk to us about the pros and cons of a DSCR loan versus a conventional   Caeli Ridge  21:53   loan. Okay? And I've got a hook here too, because I think the listeners are gonna be very, very pleased to hear at the end of this statement, what's happening with DSCR in conjunction or comparison, rather to the conventional so DSCR everybody means debt service, coverage ratio. It's a very simple formula. We are going to take the gross rents and divide it by the principal and interest and taxes and insurance and association. If it applies, that's it.   Keith Weinhold  22:18   $1,000 in gross rents, $800 in p i, t i, that yields a DSCR of 1.25 Correct?   Caeli Ridge  22:25   Yes, you're absolutely right. The one that I use as I, just to keep it simple, is 1000 rents, 1000 piti. That's a 1.0 right? As long as the gross rents are equal or greater than the p i, t i, you're going to be in a position to get the more favorable rates. Now that's not to say that we can't go below a 1.0 ratio. You can actually have a property, we have products that will allow the DSCR to be a point seven five. That would mean, in this scenario, if you had rents, gross rents of 750, and the piti was 1000 you can actually get that loan done. That is allowed. The rate gets a little bit hairy. So more often than not, we're at the 1.0 and above. So this is just a really great way for investors who are either recently self employed, maybe they're adjusted gross, they just write everything off for reasons that you can imagine. Why? Right? They don't want to pay the taxes. It could be 100 different reasons. The DSCR option is such a great solution to provide a 30 year fixed mortgage same same similar leverage, if not sometimes even better than a Fannie Freddie, than a conventional loan, you can usually leverage a little bit more, in some cases, on a DSCR like a two to four, for example, two to four unit residential property, Fannie Freddie, they kind of cut those loan to values a little bit, and the DSCR loans don't care about that. So you can get the same leverage as a single family would in a DSCR. The only other primary difference is these DSCR loans are going to come with prepayment penalties. Typically, the standard is about three years, but we're usually not refinancing in the first 36 months. Anyway, if you know that that's applicable to you, then you'd have to buy the prepay down or out, which you can do otherwise. DSCR is amazing. Oh, and I'll give you the little hook here. So something I have observed this is maybe very recent 4550 ish days, the margin for interest rate difference between conventional and DSCR is really starting to narrow. DSCR products are really performing well, and that interest rate improvements that we've been seeing for those products is not far off from what the Fannie Freddie's are, and I've even seen examples where DSCR beats a 30 year fixed Fannie Freddie rate. Now those are for the higher loan amounts. I can explain if you want, but otherwise, that's good news.   Keith Weinhold  24:36   Okay, this is really good news. It's a time in the cycle where dscrs could very well make sense for you without that huge documentation Shakedown that you need with W twos and pay stubs and everything else. There are a lot of nascent trends in the mortgage industry, and we're trying to separate some of them from being rumors, from being something that can truly happen. We're talking about 50 year mortgages and poor. Affordable mortgages. More on that. When we come back, you're listening to get rich education. Our guest is Ridge lending Group President, Chaley Ridge   Keith Weinhold  25:07   You know, most people think they're playing it safe with their liquid money, but they're actually losing savings accounts and bonds don't keep up when true inflation eats six or 7% of your wealth. Every single year, I invest my liquidity with FFI freedom family investments in their flagship program. Why fixed 10 to 12% returns have been predictable and paid quarterly. There's real world security backed by needs based real estate like affordable housing, Senior Living and health care. Ask about the freedom flagship program. When you speak to a freedom coach there, and that's just one part of their family of products, they've got workshops, webinars and seminars designed to educate you before you invest, start with as little as 25k and finally, get your money working as hard as you do. Get started at Freedom family investments.com/gre, or send a text now it's 1-937-795-8989, yep, text their freedom. Coach, directly, again. 1-937-795-8989,   Keith Weinhold  26:18   The same place where I get my own mortgage loans is where you can get yours. Ridge lending group and MLS, 42056, they provided our listeners with more loans than anyone because they specialize in income properties. They help you build a long term plan for growing your real estate empire with leverage, start your pre qual and even chat with President Chaley Ridge personally, while it's on your mind, start at Ridge lending group.com, that's Ridge lending group.com   Dana Dunford  26:50   this is hemlanes co founder, Dana Dunford. Listen to get rich education with Keith Weinhold, and don't quit your Daydream.    Keith Weinhold  26:58   welcome back to get rich education. We're talking with Ridge lending Group President and Founder, Chaley Ridge about how you can get lower mortgage rates, and also about some trends in the industry, separating what's really a rumor in what could really happen squaring on 50 year mortgages and portable mortgages, those are both things only being discussed by the administration to help with affordability. FHFA Director Bill Pulte created some jarring news recently when he publicized this. What are your thoughts on the 50 year mortgage?    Caeli Ridge  27:39   You know, on a primary residence basis, I'm not so sure I need to maybe put some more thought into that. But for an investment property, I love it. Man, anything to keep that payment down so that, because, remember, we talked about earlier in the show here the percentage of mortgages, let's just use our 30 year fixed for a second that for a rental property that start on day one and then stroke a check 360 times later to pay that to zero. Is a fraction of a percent right? We are refinancing these things. We are selling them and doing 1031 exchanges. So anything that can keep my cash flow higher and my payment lower, I am all for it. Now, the people that push back and say, Well, I want to pay off my mortgage in 15 years. I don't want to pay extra interest, you are welcome to do that. So there's a second piece to this that I think is equally as important as maximizing cash flow, and that is your qualification. All right, if this comes to pass, and right now, it could just be noise, okay, and I'm speaking specifically for investment property, but if this is available to us, the debt to income ratio component, because think about it like this. So I'm going to keep using my 15 year and my 30 year, because that's kind of what we understand. The payment difference between a 30 year 360 month and a 15 year 180 month can be substantial depending on the loan size. I mean, it can be hundreds and hundreds of dollars for the individual that is dead set and say, I don't want to pay the higher interest. I want to pay these things off. We may have arguments about that whole strategy to begin with, but overall, if they still want to do that and that's their decision, Fine, take the 30 year fixed payment. Take the 30 year fixed mortgage. Apply the difference. You can figure out that payment difference very easily. Apply it religiously. Every month. You will cross the finish line in about 15.4 years. Download an amortization calculator online. You can find them everywhere. Plug in your numbers, and you'll see what I'm talking about. If you were to do this, let's say the difference is 200 bucks a month, and you send it in every month with your 30 year fixed mortgage payment, you will cross the finish line to pay that thing off in about 15.4 years. So yes, you'll pay a few extra months of interest. But what have you done to your qualifications, right, your payment now on your debt to income ratio, when we're looking at this thing for a future optimization, never take the shorter term amortization, ever, ever, ever, you won't pay the higher interest that the 30 year or the 50 Year will probably come with because you've accelerated the payoff so long, if that's your choice. Now for everybody else that really wants. To maximize that cash flow. And they get that, they're going to be refinancing this every five, six, whatever it is, years take it, man, I am all for the longer term amortization on a rental.   Keith Weinhold  30:10   I agree with you. I even like the 50 year on a primary residence, but yeah, Chaley, right here on the show, several weeks before Bill Pulte made the announcement, I actually talked about the 50 year mortgage and compared it to the 30 and the reasons that I like it because I knew there was a chance it could be coming, since this administration is trying to do so much to help out with affordability, people buy based on a payment, not a price that lowers the payment. A 50 year mortgage helps you benefit from inflation, and there are a lot of other advantages that have to do with that, although you probably are going to pay a higher interest rate on a 50 than you would a 30. And you know, Chaley, when the 30 year mortgage had its Advent just after World War Two, I'm going to guess 75 years ago, people were having this same conversation like, oh, 30 years, my gosh, you're never going to pay off the home. And really, that's not what it's about.    Caeli Ridge  31:01   Not at all, not at all. And remember, you guys, I would encourage everybody listening to this to actually go get that amortization table and see how much interest is baked in and how it is applied and paid. It is the back end of any of these amortized mortgages where the principal actually starts to get applied in a meaningful way. The 50 year mortgage, or the longer term amortization is a huge advantage. I'm speaking for investors. Mostly. I love it.   Keith Weinhold  31:26   Some people say, are you nuts? Look at how much more interest you're paying over the life of the loan on a 50 year mortgage versus a 30 year mortgage. We already touched on that you're not going to keep that loan for the life of it, and if you just take the difference from the lower payment that a 50 Year gives you, and invest that in 8% return, you are going to crush 2x to 3x oftentimes, what the paltry interest savings are over several decades,    Caeli Ridge  31:26   and somebody else is making that payment right. We have tenants that are responsible   Keith Weinhold  31:47    100% and then there's something that I don't know if portable mortgages would fly. And what this means is that when borrowers move, they could keep the rate, keep their term and keep their lender, presumably for the new home you might have seen it in the news. You the listener that Fannie May remove the minimum credit score requirements from desktop underwriting. And Chaley, I think you let me know elsewhere that those changes don't affect non owner occupied, but of course, it could affect the broader housing market in pricing. What are your thoughts about lowering the credit score requirement   Caeli Ridge  32:28   so similar to the portable stuff, until it really reaches mainstream and it affects the non owner occupied I'm not deep diving into those things. The basis of it, though, is, is that, yeah, they're removing that minimum credit score requirement from a du underwrite that stands for desktop underwriter, as you said, that is Fannie Mae's sophisticated, automated underwriting system, and I think it's just going to give more eligibility to lower income households and people trying to become homeowners that have found the barrier for entry very restrictive because They have credit issues.    Keith Weinhold  33:00   Well, let's talk about FHA and VA loans, something that we have rarely, if ever touched on. Our listeners know that I started out making my first ever property of any kind, an FHA loan with three and a half percent down on a fourplex, living in one unit, renting out the other three. Tell us about some trends there in FHA and VA loans   Caeli Ridge  33:21   we actually just did house hack campaign. We did a webinar on it, co living, all those different ways in which, you know, the younger generation, especially, and this is true for anyone. I don't want to pigeonhole it, can get themselves into home ownership and propel them into the real estate investing as an asset class. I am such a big fan of this model, in this strategy, for anybody that's interested and willing to kind of coal mingle or habitat, like you did a four Plex at three and a half percent down, you've got three tenants that are making your mortgage payment. VA, likewise, any of the Gubby loans, which include VA, FHA, USDA, you can get high, high leverage and up to four units. So I'm a huge fan of that. And then the CO living is another thing that I think is not quite mainstream, but I think it's gaining steam    Keith Weinhold  34:09   for those that don't know what we're talking about, you can use an FHA loan with a three and a half percent down payment, as long as you live in one of the units, your credit score can even be pretty low, and you can do that with a single family home, duplex, triplex or fourplex. You can get those same benefits with a VA loan and zero down   Caeli Ridge  34:29   USDA also zero down if you're in the right zip code. How does one qualify for a USDA loan? You know, there's a website I would have you check out. We don't do a ton of those. We have the ability, of course, but there's income restrictions and all of this. They've got, actually, a pretty slick website where you can go online, type in the zip code, make sure it's in a rural area, what your income is. There's all these inputs, and it'll tell you if you'd be a candidate for it. But yeah, it's good. Rates zero down. I like the product.   Keith Weinhold  34:56   Well, there have been a lot of newsy items when it comes. Comes to mortgages. Caeli and I think we should drop back before we're done here and talk about the basics. Just basically, what does it take to get a non owner occupied loan for residential income property?   Caeli Ridge  35:12   You know, there's so many options for investors today that I would say that if you have access to and even with what we just said, house hack. I mean, listen, if you've got 3% down, three and a half percent down, you can probably assure yourself you can get into a property. And if you can't qualify from a income debt to income ratio perspective, you've got three or four other models, which include DSCR, bank statement loans, asset depletion loans, overall, I would say that this is an individual conversation. Chances are you could probably qualify today, and if you can't, one of the things that I love about Ridge lending is, is that we're going to help you plant the seeds and show you how to qualify. If it takes you three months or six months or a year, that's what we do.   Keith Weinhold  35:56   Yeah, we've definitely noticed the difference here and that you do help that investor with long term planning? I do my own loans at ridge, and my assistant here at GRE she recently got the ball rolling with you in there at Ridge as well.   Caeli Ridge  36:11   Brenda, yes, yes, that was fantastic. We are very looking forward to helping her.   Keith Weinhold  36:16   Well, you know, chili, I've come here with a lot of questions that I had. What's the question No one's asking you, but you wish that they would.   Caeli Ridge  36:25   I think it probably would be for me, planning. You know, we get a lot of questions about interest rates. That's kind of top of mind for everybody. More about planning, having people that are interested in real estate as an asset class and an investment have the conversations to say, this is where I'm at today. This is where I'd like to be in five years. Tell me how to get there, and we can have those high level conversations that really sort of reverse engineer it and say, Okay, this is where you stand today from an underwriting perspective. This is where you need to be, and here's how we're going to get you there. It's always about planting seeds and creating those roadmaps, as I like to say so I would say that that would be top of my list.   Keith Weinhold  37:02   That's exactly what you do in there, and that's really what sets you apart. Well, remind our audience how they can get a hold of ridge.   Caeli Ridge  37:11   Yes, there's a couple ways. Of course, our website, Ridge lending group.com Please email us info at Ridge lending group.com and then call us toll free. 855-747-4343, 855-74-RIDGE  is an easy way to remember.   Keith Weinhold  37:25   It's really been valuable this time. Chaley, thanks so much for coming back onto the show.   Caeli Ridge  37:29    Appreciate you. Keith.   Keith Weinhold  37:36   Oh yeah, good pointed info from Chaley over at Ridge, I think that the important things for you to remember from our conversation is that, gosh, isn't it so glaring like in your face that you have options. All these options when you engage with a lender, you're going to learn that there are probably loan programs that you've never even heard of, some that you might fit into and even if you aren't adding more property, if you're not in that phase, there are ways that you can take your existing loans and consolidate them or refinance them, or use them to produce a tax free windfall for yourself and the US is often the envy of other world nations with the flexibility that we have here in our mortgage market. I've never known anyone that does this better than Chaley and her team. I mean, they are real difference makers. If you learn something on today's show, hey, Don't hoard the good stuff. Engage in the nicest kind of wealth redistribution. Tap the Share button right now and share this on social, or text this episode to one friend who'd appreciate it. That would mean the world to me. I'm your host. Keith Weinhold, don't quit your Daydream.   Speaker 2  38:57   Nothing on this show should be considered specific personal or professional advice, please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of get rich Education LLC, exclusively   Keith Weinhold  39:25   The preceding program was brought to you by your home for wealth building, getricheducation.com  

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Keith tells how much he paid for his first property and how he traded up for more and larger properties.  He highlights the benefits of owning real estate, noting that 63% of the median American's net worth is in home equity and retirement accounts, while the top 1% has 45% in private business and real estate.  He also shares his personal journey and emphasizes using other people's money to grow assets. Discover why outdated rent control policies harm housing supply and affordability.  Learn innovative ways to turn your property's unused spaces into effortless cash flow with today's best peer-to-peer platforms.  Sign up at GREletter.com to grow your means, and join a thriving community passionate about breaking free from financial limits! Resources: These platforms let property owners creatively monetize underutilized spaces. Neighbor.com – Rent out your garage, basement, driveway, or unused space. Swimply.com  – Rent out your swimming pool by the hour. StoreAtMyHouse.com  – Rent out your attic, closet, or other home storage spaces. SniffSpot.com  – Rent out your backyard as a private dog park. PureStorage.co  – Rent out extra storage space such as garages or sheds. PeerSpace.com  – Rent out your space (home, backyard, loft, warehouse, etc.) for events, meetings, or photoshoots. Episode Page: GetRichEducation.com/581 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com GRE Free Investment Coaching: GREinvestmentcoach.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  For predictable 10-12% quarterly returns, visit FreedomFamilyInvestments.com/GRE or text  1-937-795-8989 to speak with a freedom coach 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— GREletter.com or text 'GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript: Keith Weinhold  0:01   Welcome to GRE. I'm your host. Keith Weinhold, talking about how I personally built and grew wealth myself with real numbers and real properties, what a rent freeze actually means to you, and how you could be losing income by not creatively generating more rent from properties that you already own. I'll talk about exactly how today on Get Rich Education.   Speaker 1  0:27   Since 2014 the powerful get rich education podcast has created more passive income for people than nearly any other show in the world. This show teaches you how to earn strong returns from passive real estate investing in the best markets without losing your time being a flipper or landlord. Show Host Keith Weinhold writes for both Forbes and Rich Dad advisors and delivers a new show every week since 2014 there's been millions of listener downloads of 188 world nations. He has a list show guests include top selling personal finance author Robert Kiyosaki. Get rich education can be heard on every podcast platform, plus it has its own dedicated Apple and Android listener phone apps build wealth on the go with the get rich education podcast. Sign up now for the get rich education podcast, or visit get rich education.com   Corey Coates  1:12   You're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education.   Keith Weinhold  1:29   Welcome to GRE from Stonehenge, England to Stone Mountain, Georgia and across 188 nations worldwide. I'm Keith Weinhold, and you're listening to get rich education. I visited Stonehenge and made, by the way, today I'm back for another incomprehensibly slack jawed performance here, still a shaved mammal too. Status hasn't changed. And remain profligate and unrepentant about the whole thing. You probably know it by now that if you're listening here and you want to learn and do things the same way that everyone else does things, then you are squarely in the wrong place. I really mean it more on that later. But you know, Wall Street doesn't scorn real estate because it's risky. They dislike it because it doesn't scale the way that they need it to private real estate can get messy, operational, illiquid. Every real estate deal is different. Every market has its own physics. You can't package it into a fund with a push button deploy strategy. And that's precisely the point. The modern financial system rewards frictionless products that trade constantly and generate fees instead building real, durable wealth has never been frictionless. Here's what the wealth distribution actually shows for the median American. 63% of net worth is in home equity and retirement accounts. For the top 10% that tier, 25% is in real estate and private business ownership. But for the top 1% that highest tier, 45% combined is in private business equity and real estate. So as you approach the top 1% it's more skewed toward owning a business and directly owning real estate. Wall Street, they only offer derivative exposure to real estate through mega funds and REITs. But exposure isn't ownership. Your best risk adjusted returns live in the deals that are too small and too messy for institutions to touch, and that's where your yield lives. The control, the opportunity, the world's enduring fortunes weren't built just by buying exposure. They were built by owning things, land companies, assets that require some sweat to get them going. The next decade favors owners over allocators, the stuff that pays you perpetual dividends. So the irony is that the very things Wall Street avoids the messy hands on part of real estate. Oh, well, that's what makes it such a powerful wealth builder. And see, even, as we somewhat found out last week when we talked about AI property management here on the show, you can't fully automate relationships or construction or management, but that friction is exactly where the margin lives. What makes real estate frustrating for institutions is exactly what makes it valuable for operators and long term owners like you and I. It's the nuance, the inefficiency and the need to actually. Know something about a market, rather than just model it. Wealth that lasts comes from assets that you can influence, not just monitor, and that is the difference between you having mere exposure and true ownership. You can't outsource legacy, the messy path of ownership is often where meaning in real freedom is found. You've got to tend to the garden somewhat, whether your properties are professionally managed or self managed, but some people get overwhelmed if they're asked for a log in and a password, even we all know that feeling somewhat well, then they stay metaphorically logged out of success. Think about how easy remotely managing your real estate portfolio is today. Sheesh 200 years ago. There was no anesthesia. We had smallpox, brutal physical labor, no electricity today. What if a website tells you that you've got to reset your password? Oh my gosh, is the deal often just overwhelming? Can you imagine the effort now, two weeks ago, I mentioned to you that I went back and visited the first piece of real estate that I ever owned, that seminal blue fourplex. But did I ever tell you how I grew that seed into a massive real estate portfolio, and how you can do it by following GRE principles? Let me take you through the early steps here so you can see how you can get something similar going. Of course, your path will look different, but this is going to spawn a lot of ideas for you. I think you already know about my 10k to 11k down payment into that first ever fourplex as the FHA three and a half percent down. Owner occupied, but I didn't buy another piece of real estate for over three years, because real estate just was not that driving thing in my life yet. So I lived in one of those really modest four Plex units longer than I had to three plus years after that, I moved out to a pretty modest, still single family home five miles away, that I had just bought. And since I vacated one of the four Plex units in order to do that. Now, I had four rent incomes instead of three. But here is really the pivot point with what happened next. Now, what would most people do? They might hold on to that four Plex, keep self managing it, and when they could, perhaps aggressively, make principal payments, getting the building paid off before its organic 30 year amortization period. And then what else would they do once it was paid off? Say that would take them 12 years, which would entail a lot of sacrifice, like working overtime at their job and skipping vacations. Oh, they think something like, Oh, now the cash flow is really going to pour in with his paid off fourplex? Yeah, it sure would increase a lot, but after 12 years of toil and sacrifice cashflow off of one fourplex still wouldn't even let you quit your job. Staying small doesn't work, plus you live below your means for a really long time that is sweat and time that you're never going to relinquish. You started working for money. Rather than letting other people's money take over and work for you, it is right there waiting to do that for you. So instead of that path, what I did is when equity ran up in that first fourplex building. Its value increased from 295, to 425, in three and a third years, I did exactly the opposite. I borrowed the maximum out of that first fourplex building, 90% CLTV, and used those tax free funds. Yeah, tax free funds, when you do that to both spend money, well on vacations and make a 10% down payment on a second fourplex building that costs 530k now I'm still living in the single family home while I've got the two fourplex buildings, both with 90% loans on them, still cashflowing A little so eight rent incomes, more debt than I ever had, 10 to one leverage on two fourplexes, and this was all less than five years from the time that I bought the first fourplex. And yes, it probably took some password resets in there. Then next I learned that investing in only one Metro, which is what I had done to that point, that's actually pretty risky, because all eight of my rent incomes, plus my own primary residence, were exposed to the whims fortunes and misfortunes of only one economy. This was in 2012 now, so I started buying turnkey single family. Rentals in other economies that make sense. Investor advantage places is what you've got to look for, Florida, Texas, Ohio, Alabama, Tennessee. My first turnkey was bought in the Dallas Fort Worth metro. I know I've told you that before, all right, but how was I buying more even though I was still working a day job in a cubicle for the D, o, t. Well, it wasn't from my job, because that job is working for money. What it was is borrow tax free and grow, borrow tax free and grow, borrow tax free and grow. By then, enough equity had accumulated in the first two fourplexes that I traded, one for an eight Plex and the other for an 11 Plex. Now we're getting up to $3,500 of monthly cashflow at this point, which is probably 5k plus per month in inflation adjusted terms. And the 8plex cost 760k and the 11 Plex cost 850k back then, and I still remember that that was a big day for me back then, those buildings closed on either the same day or on consecutive days. I forget. Well, that was 1.6 million in purchases. Maybe that's two to two and a half million in today's dollars. And see that is sure more than what one paid off fourplex would have given me on that old slow track, yet I had all of this faster than waiting 12 years to aggressively pay off one fourplex. And you know, some could say back at that time, they would look at that situation from the outside and say, Keith, where did you get the money to make 20% down payments on that 1.6 million worth of real estate, that is 320k cash? Did you save up all the money? No, I didn't. I didn't have the ability to save that much money at my job. Did you use your existing properties like ATMs, raiding one property to buy another. Yeah, that's exactly what I did. That is the use of other people's money that is wiser than spending my time away from loved ones by selling my time for dollars that I'm never going to get back. And by the way, I have always been the sole owner of properties. No partners here. Now, at this point, I've got dozens of running units spread across multiple states, all professionally managed. And by the way, eight doors is the most that I've ever self managed, because I got professional management involved after that. Oh, there are a ton of lessons in there about what I just told you, many of them, which I've sprinkled through more than 500 episodes now, but now that I told you where I came from, do you know the lesson that I want to leave you with here on this one, for the most part, it's that I'm not even using my own money to do this now, I did add some of my own money for down payments. Sure, by far the minority portion, primarily and centrally. I keep leveraging the bank's money, and they make the down payment for me on the next property. Borrow tax free and grow, borrow tax free and grow, borrow tax free and grow. Yes, the pace of you doing this is going to fluctuate over time, but that is the playbook that I just gave you right there. Now I've done it in cycles that feel slower because appreciation is lower, but interest rates tend to be lower during those times. And I keep doing it in cycles that move faster because appreciation is higher and interest rates tend to be higher during those times. I've done it when lending was loose, like pre Dodd Frank, and I've done it when lending was tight and inflationary. Times supercharged this whole thing. Sooner than later, you would rather get $5 million worth of real estate out there under your belt, all floating up with inflation and appreciation, not just $1 million worth, $1 million worth, that's more like sticking with one fourplex and trying to pay it off. Anything worth doing, anything in your life is worth doing. Well, look, other people's money is still available to me and to you. So using my own money back when I was an employee, I mean, that's exactly when I would have had to trade more of my finite time for dollars and see, that's what the masses do, and that's precisely what keeps them as the mediocre masses. I really mean it. Now, I wanted to make things real for you with that soliloquy.   Keith Weinhold  14:47   Later today, I'll discuss the GRE principles. Did that formative story spawn? A few weeks ago, it made substantial news inside and outside the real estate world that Zohran Mamdani was elected to be the next New York City Mayor. His first day on the job will be the first of the coming year. And actually, it's easy for you to remember how New York City mayoral terms work, because it is the same as the President of the United States. Each term lasts four years, and they can serve up to two consecutive terms eight years. Let's you and I listen into the audio from this short video clip together. This Mamdani campaign spot ran back before election day, but it tells you what he stands for and where he's coming from with regard to rent. In a slightly corny way, the ad shows various tenants popping their heads out of apartment windows and such, saying like, Hey, wait, what? You're going to freeze my rent?   Speaker 2  15:50   I'm Assemblyman Zohran Mamdani, and I'm running for mayor to freeze the rent for every rent stabilized tenant.   Unknown Speaker  15:57   Wait, you're gonna freeze my rent?   Speaker 3  15:59   Yes, did I hear rent freeze?   Speaker 4  16:02   Yes, this guy's gonna freeze the rent. No. Pike none. This guy's gonna freeze the   Unknown Speaker  16:09   rent. It's true.   Dani-Lynn Robison  16:12   As your next mayor, I will freeze your rent paid for by Zoran for NYC.   Speaker 5  16:17   The banner at the end of the ad reads, Zoran for an affordable New York City. Oh, yeah, slogans like that are so catchy for anything. All right, he says he's going to freeze the rent for every rent stabilized tenant. And rent control and rent stabilization, they mean very similar things, ceilings on the rent. I'm soon going to tell you what I think about that, and I've got more on Mamdani shortly, but it's not going to be political This is not that kind of show. This is an investing show. I think that even our foreign listeners know how big and influential New York City is. It's not the political capital, but it is the capital of so many things in the United States, it's America's largest city by far, eight and a half million just in the city proper, 20 million in the metro. And New York's growing in sheer number of people. The Metro gained more population than any other city, almost a quarter million people added just last year, even if you doubled the population of the second largest city, LA, New York City would still be larger. All right. Well, how did we get here? A quick story of New York City rent control is that in 1918 New York City passed its first flavor of rent control, and that was the first US city to do so that didn't solve the problem. So in 1943 Congress passed the emergency price control act, and its name implied a temporary patch during World War Two. But even after it expired, and even after the war ended, New York State chose to make it basically permanent in 1950 that didn't solve the problem. So in 1962 New York state passed a law allowing cities to enact expanded rent control if they declared a, quote, housing emergency. Well, New York City did, and that housing emergency has essentially continued unresolved. Still, what they consider an emergency condition persists today, yeah, all these decades later. I mean, really a what, 60 to 70 year long emergency condition that didn't solve the problem. So in 1969 new york city passed what they called rent stabilization. It's really just a new flavor of rent control, and this greatly expanded the number of properties that were subject to these rent regulations. And about half of New York City's apartments are subject to that law that didn't solve the problem. So more expansion and more tweaks of regulating the rent were made in the decades that followed. You had notable ones in 1997 2003 2011 in 2015 but none of them solved the problem. So in 2019 New York expanded rent stabilization to include what they call vacancy control. Now what that means is rent caps are now applied to new renters, not just those existing tenants renewing a lease, and it also granted more tenant protections that didn't solve the problem. So in 2024 New York State passed what they call good cause eviction. That is a third expansion of rent regulation in these tenant protections. This time, they just gave it a slick name, kind of apropos of Madison Avenue's famed market. Marketing prowess. I suppose that didn't solve the problem. And by the way, rent caps came in below not only the rate of inflation, but also below household income growth almost every year over the last decade, and in some years, no increase was allowed at all. That is a rent freeze. But that didn't work either. And meanwhile, New York's public housing agency has 80 billion in deferred maintenance needs, and it's running a $200 million plus operating deficit. So government run housing that hasn't worked either. All right? Well, that brings us to 2025 where New York City is electing a mayor who campaign on freezing the rents and expanding public housing. So New York City now has, for over a century, chosen to expand and rebrand these ideas that just haven't worked, and yet they keep coming back for more and yeah, what exactly is the word for doubling and tripling and quadrupling down on ideas that have proven not to work? Is that word stupidity? Hmm, so throughout that history that I just brought you from 1918 whenever I say that didn't work, what do I mean by that? And here's the big takeaway for you. What I mean is that rent control hasn't worked in New York City because it discourages landlords from maintaining rental housing, and certainly from building new rental housing. So what that does is that it shrinks the supply over time When demand exceeds supply, you know what happens to price? And in Manhattan, just the studio apartment now averages $4,150 and the average rent citywide, that's Manhattan, Brooklyn, Queens, the Bronx and Staten Island, which does include some rough areas in this average rent is $3,560 so as a result, what really happens here is that rent control helps a few lucky tenants while driving up rents and then worsening the shortages for everyone else. So what is the solution here? It is simple. Actually do less. I mean, isn't it great when you can solve a problem in your life by actually doing less? Yeah, drop the regulations against building and drop all forms of rent control, that way we'll have more building, and with higher supply, natural price discovery could take place. So he says he's going to freeze the rent for every rent stabilized tenant. And you can start to understand why we don't discuss investing in New York City Housing very much on GRE what we do. We talk about it as a model of what not to do. The good news is that I don't have any evidence of rent control spreading into the investor advantage areas that we talk about here, like the southeast and the south central part of the United States and the Midwest. But here's the thing, just ask yourself this question, what if there was a force imposed on you by popular vote that froze your income. Okay, I'm talking about no matter what you do from work you're a software engineer, a doctor, a nurse, a paralegal, a carpenter. Would you think that was really unjust if your profession were singled out, and then voters said, hey, no more raises for you. We don't care if there's inflation, we don't care if you're getting better at your job. We don't care if you have rising expenses. We're going to put a cap on your income. How would you like that? Well, look, in New York City, they're voting for landlord's income to be frozen. They are singling out one profession, and these are really important people. These are the housing providers. So by the way, I've heard two people describe New York City mayor elect Zohran mandami. Is a good looking man? Is he good looking? I had to go look again. When people said this, I guess he's not bad looking. And hey, despite being a heterosexual male, I can say that some guys are good looking. I just never thought that with him.   Speaker 5  24:32   Now, do you have one friend kind of have that type of friend who always just seems to know what's happening in the housing market? Well, that person could be you. There is a way to do that. Boom, it's easy, and you're going to sound smart without reading a single boring, fed report. I don't sell courses. I don't wear sunglasses indoors, and I definitely don't tell you. To flip houses on Tiktok. I just talk here, and I send you a smart, short real estate newsletter. That's it. This is smart stuff that you can brag about at boring dinner parties, and you've got a lot of those coming up here at the holidays. It is free. I write our letter myself, and I'd love to have you as a reader, sign up at greletter.com it's quick and easy. Your future wealth will thank you for it. See what I did there. It takes less than three minutes to read, and it is super informative. GREletter.com Again, that's greletter.com, I've got more straight ahead.    Keith Weinhold  25:45   You know, most people think they're playing it safe with their liquid money, but they're actually losing savings accounts and bonds don't keep up when true inflation eats six or 7% of your wealth. Every single year, I invest my liquidity with FFI freedom family investments in their flagship program. Why? Fixed 10 to 12% returns have been predictable and paid quarterly. There's real world security backed by needs based real estate like affordable housing, Senior Living and health care. Ask about the freedom flagship program when you speak to a freedom coach there, and that's just one part of their family of products, they've got workshops, webinars and seminars designed to educate you before you invest. Start with as little as 25k and finally, get your money working as hard as you do. Get started at Freedom family investments.com/gre or send a text now it's 1-937-795-8989, yep, text their freedom coach, directly again. 1-937-795-8989   Keith Weinhold  26:57   the same place where I get my own mortgage loans is where you can get yours. Ridge lending group and MLS, 42056, they provided our listeners with more loans than anyone because they specialize in income properties. They help you build a long term plan for growing your real estate empire with leverage. Start your prequel and even chat with President chailey Ridge personally while it's on your mind, start at Ridge lending group.com that's Ridge lending group.com   Dani-Lynn Robison  27:30   this is freedom family investments, co founder day. Lynn Robinson, listen to get rich education with Keith Weinhold, and don't quit your Daydream.   Keith Weinhold  27:37   welcome back to get reciprocation. I'm your host. Keith Weinhold, earlier this year, I talked to you about new ways where you can generate more income from the properties that you already own, and doing that through peer to peer leasing platforms, I got feedback from you that you loved it when I talked about it on that episode. Well, I've got more of them to tell you about today. This is exciting. Is there money sitting right under your nose and you haven't even collected it yet? And sometimes this happens in the world. This has nothing to do with finding Uranus, but it is similar to how they just discovered a new moon of Uranus, even though it's only six miles wide. Yes, that's something that scientists recently discovered, yes, much like this new small moon of Uranus that was really always there, but just discovered, metaphorically, this is what we're talking about with your real estate here now. This is a lot like how Airbnb rattled the hotel world about 15 years ago. These platforms let you rent out space and amenities that you already own but barely use. Neighbor.com, is the first one. I'm not going to say.com every time, because most of them are that way, and they've got a mobile app of the same name, all right, neighbor that's like Airbnb for your garage or your basement or even that creepy crawl space that you never go into. So instead of letting junk collect dust, you rent out your unused space to people who need that storage, meaning then that their clutter pays your mortgage. So customers request space and then you approve it. That's how it works. In fact, we have a woman here on staff at get rich education that easily made about 1000 bucks personally on neighbor, she rented out a parking space in her driveway. She rented that space to a college student that needed a place to park her car while she went back home for the summer. You can easily do that too. Then there. Swimply, S, W, I, M, P, L, Y, rent out your pool by the hour. Yes, your pool is no longer just for cannonballs, awkward barbecues and tanning sessions that you regret, although not typically, I've read about how some people have made passive income streams of $15,000 per month this way. I mean, gosh, did Marco Polo just get turned into a side hustle? Or what that is, swimply. Then there is store@myhouse.com Do you have an empty closet or an attic? You can turn that into a treasure vault for stranger stuff, and you can get paid while their clutter hides in your home instead of their home. So think of it as maybe some pretty passive income, only dustier, and who even lives there in your attic right now? Anyway, a bunch of raccoons. They're not paying your rent again. That is called store at my house. Sniff spot. It turns your backyard into a private dog park. Yeah, local pet owners can book your yard by the hour to let their pups run and sniff and play. You provide the grass. They bring the zoomies, and you pocket the cash that is sniff spot, Pure Storage. That one is a.co when people need storage, you swoop in like a friendly capitalist neighbor with your extra space. So you rent out your garage or a shed, or, say, even a corner of your basement, and you watch empty become income, you are basically running a mini Self Storage empire without the neon sign. I mean, sheesh, you are kind of like Jeff Bezos with cobwebs here. Okay. Again, that is purestorage.co, then there's peer space. Now I've used this one before, personally, and so has someone else here on staff on GRE she actually told me about it. What I did is I paid for a few hours as a renter, not the landlord on peerspace. In fact, I rented this space this past summer to give an in person real estate presentation where I covered real estate pays five ways and the inflation triple crown and all of that with peer space, you rent out your space for events, okay, so your home or your backyard or loft or some funky warehouse, you rent that out by the hour, and those events could be film shoots or workshops or parties or other events. That's what peer space is for. I mean, that could be a cool backdrop for an influencer or a film crew that has a pretty big budget. Renters come to you with alacrity. They will come to you because they can often save 50% or more versus using more traditional avenues. There, in fact, even public storage, like that's the company name Public Storage. They're the nation's largest self storage space operator. They even use neighbor.com to help lease out their leftover inventory. And so do some REITs that have extra space at their office or retail or apartment properties. They use neighbor.com as well. All right, so that's my roundup of more peer to peer leasing platforms, a few more of them than I told you about earlier this year, and the types of listings you can get creative. People are getting creative. They are monetizing everything from empty barns to vacant strip mall storefronts to church parking lots. I mean, consider how often church parking lots are empty. They're empty almost every day except Sunday. So get creative and think about space that's not being used. One thing to look out for, though, is that your HOA might try to crush your entrepreneurial spirit here. So keep that in mind. Just look around. Do you own any underutilized space or asset that you can rent out. Well, chances are there's already a peer to peer rental platform for it. And when you visit any of these platforms that I told you about, I mean, you're probably already going to see people offering space in your neighborhood. You'll be surprised.    Keith Weinhold  34:39   And this is not some unproven fad. Turo really took off about 10 years ago when they realized that most Americans' cars just sit idle, more than 95% of their time in their driveway or in their garage. Well, at that point, everyday people started to lease out their cars. Cars on Truro. So the bottom line here is that if you own most any real estate, then you've got options, and you can often make the rules peer to peer. Leasing platforms add new income streams to your life, and if you read my Don't quit your Daydream letter, you'll remember that I wrote about those resources and gave you their links and everything. See, that's the type of material that I put in the letter sometimes and again. You can get it at gre letter.com It shows you how to build wealth, much like I've been talking about on the show today. This is vital, because the conventional consumer finance world, you know, they just don't tell you about things like this. For example, did you ever wonder why economists aren't rich like maybe you would think that they would be Well, it's because schools and universities, they don't really teach you how to make money so someone can have an advanced degree, a Master's, or even a doctorate. That degree will be in finance or in economics, but they're still broke, or they're still trapped by their job, because the only way they know how to make money is by having a job. There's nothing wrong with having a job, but that's the only thing they know. They never learn how to earn and multiply money like with what I've been discussing today. Economists make between 70k and 180k per year in America today, you know, school taught both us and them the theory of money, how it's counted, how it's tracked, and how it flows through the system, but it really didn't teach them how to build a little diverter device on that flow to earn it or create it or leverage it to build freedom for themselves. And that is why this show is here. That's not a knock on economists. Economists are brilliant people, and some of the best known ones are guests on the show here with us. At times, we don't just want to live in a world of models and charts, though, when you build real world wealth with mortgages and markets and moves that don't always fit inside a formula, and certainly not a conventional one that you grew up with. So when you hear the experts talk about where the economy's heading, sure listen to them. I listen to them, but be sure to apply that to your own balance sheet, because you don't build wealth in theory, you build it in real life.    Keith Weinhold  37:44   Then how do you get a good deal? Build a relationship with a GRE investment coach like Naresh. Here you can do that on just 130 minute call with him, and then when the deal that you want becomes available, he'll let you know. By the time you find something on the internet, it's going to be too late, because that means a lot of people have already passed on that deal. If it's already out there publicly, like I said earlier, if you want to learn and do things the same way that everyone else does, then you are squarely in the wrong place. I really mean it. And why would that be? In fact, what does everyone else have? Not enough money at the end of the month, a budget where they constantly have to make sacrifices to meet it, because they think that is the way and they live below their means instead of grow their means. The underlying philosophy here at GRE is, don't live below your means. Grow your means. In fact, we have a T shirt with Grow Your means on it and our logo on it in our merch shop. That's why GRE has a tree in the logo. Grow your means. Instead of shrinking your lifestyle to fit your income, it's about expanding your income to fit your ambition, so don't cut your dreams to match your paycheck. Grow your paycheck to match your dreams. This really reflects the abundance mindset behind get rich education, that wealth isn't built by pinching pennies, but by creating more cash flow and assets and income streams in practical terms, like with what I talked about, about growing my own portfolio back at the beginning of today's show, this means buying cash flowing real estate that's growing your means leveraging good debt that's growing your means using inflation to advantage, that's growing your means investing in yourself or in new ventures. That's growing your means it's the mindset opposite of budget, harder. It is earn smarter at its core, grow your means. What that means is expand your capabilities in. Not just your comfort zone. Use creativity and leverage to multiply your results. View financial growth as a positive, proactive act, not a greedy one, because you're going to serve others with good housing and maintain it. This all encourages abundance over austerity, and it's the same idea behind the tagline financially free beats debt free.    Keith Weinhold  40:27   Thanksgiving is coming up this week, and I'll tell you something. Luckily, American ingenuity improved since the Pilgrims left England, traveled to a totally new continent, and called it New England. Fortunately, we have become more innovative since then, you are about to have more topics for conversation with family at the holidays. And note that Gen Z, ages 13 to 28 they are more likely to talk money today than they did previously. They are kind of the share everything on social generation. Tell relatives about your real estate investing, or at least some of the ideas you have. Tell them, perhaps something that they would be surprised to hear, that you learned on this show, like mortgage rates are, in fact, historically low today, actually, or something like that. And at Thanksgiving or Christmas, please tell a friend about the show. GRE is the work of my life, and that would mean the world to me. If you like listening every week, tell a friend about the show. Now use the Share button on your podcatcher if this show helps you see money or real estate differently. On Apple podcasts, touch the three dots and then the Share button. On Spotify, I think you can just hit the Share icon, the little rectangle with the arrow, and post it to your social feed or social story. That's how more people learn how to build real wealth like we do here at GRE and even better, Don't hoard the good stuff. If you learn something here, engage in the nicest kind of wealth redistribution. Tap the Share button right now and text this episode to one friend who'd appreciate it. Until next week, I'm your host, Keith Weinhold, have a happy Thanksgiving, and don't quit your Daydream.   Speaker 6  42:29   Nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of get rich Education LLC, exclusively.   Keith Weinhold  42:57   The preceding program was brought to you by your home for wealth building get richeducation.com

Season 11, Episode 12 opens with a whirlwind week in retail news. Steve and Michael begin with the long-awaited end of the historic 43-day U.S. government shutdown, exploring what it means for holiday spending, federal workers, SNAP benefits, and travel recovery. While uncertainty lingers—particularly around health-care subsidies—the hosts note that retail may still experience ripple effects, especially among lower-income consumers living paycheck to paycheck. Still, retail sales continue to surprise: year-over-year spending climbed 5%, with clothing, sporting goods, electronics, and general merchandise leading the pack. Ecommerce also surged, with October online sales up 8.2%The hosts then unpack a series of strong earnings from standout brands. On continues its explosive growth with sales up over 30%, while Warby Parker posts a 15% sales jump and meaningful profitability improvement. The RealReal rebounds with 17% revenue growth, and Shopify reports a remarkable 32% increase, reflecting the strength of digitally enabled commerce. Another major storyline is the rapid rise of AI shopping: Adobe Analytics data now shows AI-driven traffic converting 16% higher than traditional channels, validating the momentum behind agentic commerce. In other tech news, Google announces an AI agent capable of calling stores, checking inventory, and completing purchases—a signal of seismic shifts underway in retail automation. And finally, the surprise timing behind the departure of Walmart CEO Doug McMillon prompts conversation about leadership transition, strategy continuity and the remarkable transformation he led. The second half of the episode features an in-depth interview with Julie Bornstein, Founder & CEO of Daydream—an AI-powered, chat-based shopping engine still in beta but already partnered with over 10,000 brands and 350 retailers that has already raised $50mm in capital. Julie shares her impressive career journey through Nordstrom, Urban Outfitters, Sephora, Stitch Fix, The Yes, and Pinterest. She then goes to explain how Daydream solves fashion's most enduring problem: overwhelming choice. With generative AI enabling natural-language search, Daydream aims to deliver truly personalized recommendations by combining human stylist expertise with an ensemble of specialized models that understand fabric, fit, color, and aesthetic nuance. Julie also discusses the complexity of building a platform that merges taste-based shopping with machine learning, the importance of deep brand partnerships, and why major retailers see Daydream as both a customer-acquisition engine and an AI learning lab. She previews what's ahead: emerging social features, secondhand expansion, new iOS integrations, an upcoming app launch, and broader consumer rollout.  SPECIAL OFFER for our listeners! SAVE 20% on registration for the all new Shoptalk Luxe event in Abu Dhabi January 27-29.For more info go to https://luxe.shoptalk.com/page/get-ticket and then register using our special code : RRLUXE20 About UsSteve Dennis is a strategic advisor and keynote speaker focused on growth and innovation, who has also been named one of the world's top retail influencers. He is the bestselling authro of two books: Leaders Leap: Transforming Your Company at the Speed of Disruption and Remarkable Retail: How To Win & Keep Customers in the Age of Disruption. Steve regularly shares his insights in his role as a Forbes senior retail contributor and on social media.Michael LeBlanc is the president and founder of M.E. LeBlanc & Company Inc, a senior retail advisor, keynote speaker and now, media entrepreneur. He has been on the front lines of retail industry change for his entire career. Michael has delivered keynotes, hosted fire-side discussions and participated worldwide in thought leadership panels, most recently on the main stage in Toronto at Retail Council of Canada's Retail Marketing conference with leaders from Walmart & Google. He brings 25+ years of brand/retail/marketing & eCommerce leadership experience with Levi's, Black & Decker, Hudson's Bay, CanWest Media, Pandora Jewellery, The Shopping Channel and Retail Council of Canada to his advisory, speaking and media practice.Michael produces and hosts a network of leading retail trade podcasts, including the award-winning No.1 independent retail industry podcast in America, Remarkable Retail with his partner, Dallas-based best-selling author Steve Dennis; Canada's top retail industry podcast The Voice of Retail and Canada's top food industry and one of the top Canadian-produced management independent podcasts in the country, The Food Professor with Dr. Sylvain Charlebois from Dalhousie University in Halifax.Rethink Retail has recognized Michael as one of the top global retail experts for the fourth year in a row, Thinkers 360 has named him on of the Top 50 global thought leaders in retail, RTIH has named him a top 100 global though leader in retail technology and Coresight Research has named Michael a Retail AI Influencer. If you are a BBQ fan, you can tune into Michael's cooking show, Last Request BBQ, on YouTube, Instagram, X and yes, TikTok.Michael is available for keynote presentations helping retailers, brands and retail industry insiders explaining the current state and future of the retail industry in North America and around the world.

Keith discusses the evolving role of AI in real estate, highlighting its impact on property management and tenant interactions.  He contrasts traditional AI, which excels in IQ tasks but lacks emotional intelligence (EQ), with agentic AI, which can perform autonomous actions. Dana Dunford, CEO of Hemlane, explains how their platform uses AI to streamline repair requests, leasing, and tenant communication. She emphasizes the importance of human oversight for tasks requiring EQ.  Looking ahead, Dana predicts increased standardization and remote-first investing, with technology playing a crucial role in enhancing real estate management efficiency. Resources: Explore Hemlane's property management platform and request a demo at www.hemlane.com  Mention the GRE podcast when signing up with Hemlane to receive a 20% discount on the first year. Episode Page: GetRichEducation.com/580 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com GRE Free Investment Coaching: GREinvestmentcoach.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  For predictable 10-12% quarterly returns, visit FreedomFamilyInvestments.com/GRE or text  1-937-795-8989 to speak with a freedom coach 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— GREletter.com or text 'GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript:   Keith Weinhold  0:01   Keith, welcome to GRE. I'm your host. Keith Weinhold, what will real estate look like in five years as AI keeps making inroads into our lives, learn how people have begun using it to manage their rental properties and doing it more cost effectively than humans can. It's a forward looking episode today on get rich education.   Speaker 1  0:26   Since 2014 the powerful get rich education podcast has created more passive income for people than nearly any other show in the world. This show teaches you how to earn strong returns from passive real estate investing in the best markets without losing your time being a flipper or landlord. Show Host Keith Weinhold writes for both Forbes and Rich Dad advisors, and delivers a new show every week since 2014 there's been millions of listener downloads of 188 world nations. He has a list show guests include top selling personal finance author Robert Kiyosaki. Get rich education can be heard on every podcast platform, plus it has its own dedicated Apple and Android listener phone apps build wealth on the go with the get rich education podcast. Sign up now for the get rich education podcast, or visit get rich education.com   Corey Coates  1:11   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  1:27   Welcome to GRE from Long Island's Hamptons to Hampton Roads, Virginia and across 188 nations worldwide. I'm Keith Weinhold, and you are listening to get rich education way back in the year 2010 when someone said AI, that could only mean one thing they were talking about, Alan Iverson today, it means artificial intelligence, because chatgpt debuted three years ago this month, and gosh, that changed a lot. It changed how you search for answers to everyday questions. We'll get into applying AI to real estate and property management shortly. But more broadly, look, here's what's interesting, the very premise of a chat bot, like just hearing that word, it sounds really cold and impersonal, yet think about it, Google was way less personal. When you Google something a decade ago, say list the three best paints for drywall, you'd get a list of links, and then you had to dig in and synthesize things and often interpolate to find your answer, or maybe you wouldn't even get the right answer. Instead, today, a chatbot on chatgpt or Gemini gives you the answer in nice, friendly sentences. Maybe they'll list some acrylic and latex paint varieties, and then after the answer, they come back and ask you a good follow up question. If you'd like to dig in for a deeper answer, they'll bring up something that you hadn't considered before, perhaps like it'll turn around and ask you if you want them to refine their answer to just the best latexes and acrylics specifically for rentals. And then it will ask, Would you like me to do that for you? And when you see that, you quickly feel like it's more friendly than that old list of links from a Google search. Yeah, that's a friendly Chatbot. And you can start to see what I mean here. It's not so cold and impersonal. Understand that these platforms ask you a friendly follow up question, because they want to keep you on that platform, just like anywhere else, does you already hear less about hallucinations than you used to when it would just cough up these weird errors? I feel like it's giving better answers than it did just a year or two ago. In my experience, one place where you need to be careful is that these platforms are being so nice to you at times they seem a little too agreeable. One way to break that is to tell the AI challenge my thinking, just those three words can give you a more complete answer. Challenge my thinking, as we already know, one danger about AI is everyone is quickly becoming really reliant on it, and this could be especially harmful to kids that haven't developed independent skills yet. Now I heard from a young teacher who quit her job. A lot of kids don't know how to read today. Why would they when they can just hit a button and it reads it out loud for them, between third and fourth grade, that's when children should transition from learning to read over to reading to learn. Kids have aI right in their hand now, not every kid, but increasingly, they aren't writing a full essay by hand with their own thoughts that they conjured up. Of course, chatgpt does that for them. Now it's probably good to teach chatgpt to kids in older grades, that is, if they don't already know it better than the teachers do, but you've increasingly got teens and young adults that say don't know how to write a cover letter for a resume because it's done for them. Now, much of what I've been talking about so far is called generative AI, and all that means is that it creates new content in response to your prompt. Today, we'll also talk about agentic AI in real estate that is spelled like agent and with IC at the end. How agentic AI is different from Oh, the chat GPT or Gemini prompts that I was talking about is that it acts on its own to perform a series of actions to reach a goal. So agentic AI gets kind of autonomous.    Keith Weinhold  6:06   Before we bring in a great guest to talk more about AI and property management. If you're looking for another episode on how to use AI more broadly in your life and broadly in real estate, check out episode 543 of the get rich education podcast that was a great episode from back in March again, that was episode 543 titled How to use AI for real estate.   Keith Weinhold  6:34   Now let's pull back and humanize things a little before we talk about bots. I just caught myself doing something kind of funny. Now, the other day, I used the hand ergometer at the gym. If you don't know what that is, while you're oftentimes standing up, you basically use your hands to crank this device's pedals in much the same way that bicycle pedals move. It exercises your biceps, triceps, forearm muscles. I have never seen anyone use this device at the gym before, not one person, but I wanted to try them, right? It seems like I often want to try something different from everyone else, and it looks just slightly odd to use this hand ergometer machine. Well, that's not the funny part. The next day, I was throwing a football around with a friend, and I couldn't figure out why throwing a spiral was so difficult for me and why my throwing accuracy was dreadful. Later, when I got home, my forearm started feeling sore. Oh, and I realized it was from using that hand ergometer. You know, this is such a typical guy thing to do, I made sure to DM that friend immediately to tell him that my football throws were lousy only because I had used a hand ergometer at the gym the day before. And he basically replied, yeah, your throws were really bad. It's funny that I felt so compelled to DM him like, hey, I really don't want ed thinking that I can't throw a football like that is so important or something. I could have done anything else with that two minutes of my life, but I cannot go about the rest of my day if Ed thinks I've got a bad football spiral like so important, like, my flight to Paris leaves in 30 minutes, but I'll put that whole trip in doubt, because I can't forget to tell ed I can usually throw a spiral on a football better than what he's thinking. Because, admit it, everybody has an ego. Some are just bigger than others. Well, I am bursting at the seams with a lot of broad real estate investing techniques and developments for you, but I'm putting that on hold until after today's show.    Keith Weinhold  8:45   We're talking with the CEO and co founder of property management platform, hemlane. It's spelled H, E, M, L, A, N, E, hemlane. I'll ask her where real estate will be within five years. She's a really intelligent woman and fully aware that your tenants don't want a bot to handle all of their maintenance requests. It's a lot like how you don't want to say representative to an automated phone system. It's hard to be nice when you're trying to clearly articulate it for the third time representative. Let's meet this week's guest.   Keith Weinhold  9:33   This week's guest is the CEO and co founder of hemlane. They're a property management platform with over 28,000 rentals and a billion dollars in payments process, just like we have been since day one here at GRE She is a strong advocate of purchasing properties anywhere. So that's often going to be outside your home state, because if best investments typically aren't right in your backyard, and why would you limit yourself? She supports real estate investors in setting up the most intelligent process to manage rentals from a distance, in case you want to self manage and do that. She's been named one of the top 20 women leaders and influencers in real estate tech. She has a distinguished resume previously working at Apple, and she received her MBA from Harvard Business School. She's an interesting person too. In her free time, she's an avid equestrian, paraglider and skier, so like me, she sort of has this substantial life outside of real estate too. Come on. You need to do that for your sanity. Well, we've been talking for almost a year now, but this is your first time on the show. Hey, welcome. It is the GRE debut of Dana Dunford.   Dana Dunford  10:44   Thanks so much Keith for having me. I'm so excited to be on your show and have been following it for a long time. So huge fan.   Keith Weinhold  10:52   Appreciate that Dunford is spelled D, u n, f, O, R, D, for listeners in the audio only. And this is a rather forward looking episode streamlining how to use AI in real estate and as a property management solution, putting that in your hands so that you could do that yourself. And before we're done, Dana is going to tell us what real estate investing will look like in five years, and if it's a good time to invest now. But first, Dana, I know you're an expert in leading having autonomous agents handle the tenant relations, things like communication and repair orders to a unit and rent collection. But I think a lot of people aren't really sure what an autonomous agent is. They're like, Hmm, is that somewhere between an autonomous car and a Roomba or something? So what is an autonomous agent?   Dana Dunford  11:42   Yeah, so there's two different types of AI, and where we are right now is with traditional AI. There's also agentic AI, where essentially AI will just take over, be proactive, think about things in advance, know exactly how to solve and make decisions. But Keith, to your point, very many out there here, AI, it's very much of a buzzword, and so I love some sort of parallels, just like you had mentioned with like the robot vacuum. I think a really good parallel would be self driving cars, because that's something that's applicable. We can all relate to. You know, you have Tesla, I have one, and it can drive me to and from work at any time, fully on that autonomous but there will be occasionally times in San Francisco where it will require me to take over the wheel because it's too foggy. There's something that goes on that's too complex of a situation. That is where I would say AI is today that traditional, where it's like it can follow exactly a process, but if the process messes up, like there's something in its way, it can't make a decision. It beeps at you and says, take over, whereas if you look at something like Waymo on the self driving car side, that is fully autonomous. There's no one there. There's no one making decisions. But it's very limited on where it can go, what it can do. Now the technology is better, and that's for another conversation, but it's just slower to go to market. And so with traditional AI, and what we're seeing now, it's fast to market. Everyone can use it, but you can't rely on it 100% you can't say it takes the wheel 100% of the time. And I don't have to think about it. And so that is where we are. I think a lot of experts in the space will say 2030, is when we will see this agentic AI. Will see it completely take over, but we're just not there today.    Keith Weinhold  13:47   All right, we're talking about the transition from traditional AI, which is in place today, to agentic AI, perhaps the Advent or popularity of that in five years, when I think about autonomous agent a lot of times, I like to look at etymology. Just what does that specifically mean? So we're talking about for another AI or a bot, if you will, to have autonomy over decision making. And when we think about autonomous agency with property management, how can we think of that application?   Dana Dunford  14:20   Yeah, I think that you need to break it down into what AI does very well right now, and what you could have aI fully take over, and where you might have some problems. And let me back up to if everyone remembers Watson, who beat Jeopardy, this was a while ago. The reason was, was actually because AI is very good at IQ. It can look up a ton of facts, or it can solve a really complex math problem. So anything on like the IQ side, AI is great to solve, but it's EQ that AI. Lacks, yeah, and EQ is me picking up the phone and saying, you know, Keith, I'm so sorry I messed up on, you know, whatever it was for you. If you're my boss, I'm so sorry here. So I'm going to make it right. Blah, blah, blah, blah, blah. And so that's where AI is not as good. And so when I think about any kind of system with real estate, you know, putting together your pro forma and looking at the cash flow and all of that, like AI can actually do it well, if you set up these are all the prompts that I would need, or take everything from insurance to interest rates and come up with the pro forma. But where AI will fail is a lot of times on the tenant communication side. And the reason for that is, let's just say, Keith, you have a apartment complex and there is the heat out. Well, if someone has a screaming baby in the background when you pick up the phone, you are going to answer that question, or you're going to talk to that tenant a lot differently if you're human versus if you're AI, you're going to say, oh my gosh, you have a four month old baby. You know, I also have kids. I know exactly what you're going through. And just so you know that HVAC technician is coming out right away, I will be here for you. I'm going to call you in five minutes. And so I always say, especially in real estate, because real estate is a people business, you really need to what, what you're trying to automate, or what you're trying to use, AI into four quadrants, and one axis, the horizontal axis, is IQ. Anything along that access it does well, but the vertical axis is EQ. And so the higher up you go on EQ, where you need relationships, the less likely it is, or my recommendation, would be, put a human in there. And so when we think about AI, it's like, if you're calling someone to confirm an appointment and remind them that, like an electrician is going to be there in an hour, you don't really need a human to do that. That's something that AI can do, and someone's going to have a delightful experience, right? But if it's something that requires that, EQ, that's where you're still going to have to have humans there.   Keith Weinhold  17:11   One thing that I often think about is, some years ago, popular email providers like Gmail, when someone would send you an email message asking you a question, Gmail basically started reading that email for you and giving you three little bubbles to click on the bottom, basically where you can click a yes answer, no answer or a follow up for more information, does that help give some relativity to what We're talking about here in property management and those tenant relations.   Dana Dunford  17:43   Yeah. I mean, I think that the Gmail with like, yes, no or No, thank you, or you get it also on LinkedIn that almost has zero EQ, because it's really just answering a question. It's not saying, Keith, I hope you had a wonderful weekend. You know, on your run, blah, blah, blah, blah, blah. It's not doing any of that. And so I think that is very much of a case of like, it's responding exactly to the email. I do think AI is getting better, where it's having that human touch involved in it when it responds to things. So now in Gmail, where you can have it draft you a response, but at the same time, it's not quite there unless it has enough context. And what I mean by context, and Gmail is such a good example, let's just say Keith today, if you look at Gmail and it's responding to an email, it is literally only responding based on the context it has in that email, right? But let's just say Keith, that you could increase context. So I gave you two axes, like EQ and IQ, high and low on both. Imagine if I could add a third axis on there, so it's almost like 3d and it's context. Now imagine that email you just mentioned came in, and it also could look at my messages, Keith with you on, let's just say Facebook, it also could look at the last shows that you had out there. It also just looked online at things, and maybe it could look at other, you know, information that you might have posted on LinkedIn. And maybe you posted on LinkedIn about your run this weekend. Now I can respond with a lot more context. Hey, Keith, saw on LinkedIn. You had this that is actually adding EQ to it, where it's making it much more personalized. And I think that is where the future of technology is going, and that's why data is such a big play here, because the more context you have, the better you are. And you know, we see that personally as a tech company, we wanted to control more of the data. We don't want to have a ton of APIs with other companies running maybe self guided tours for us, or running the maintenance coordination, because we need that all in our system. Because if we don't have access to the lease agreement to know specifically, do they have an occupant under one years old in the place it makes it. Lot more difficult for us to respond in a very eloquent way and help solve that EQ problem that a lot of AI has today.   Keith Weinhold  20:09   Talk to us more about how today autonomous agents are helping with property management, whether that's handling tenant requests for repair issues or helping virtual showing. So tell us more about how it's really helping investors today, and then what to watch out for.   Dana Dunford  20:27   Yeah, definitely. So the autonomous agents, or at least the AI agents, that we have always draft things up. Well we use them for like, some of the best places to use them are things like troubleshooting repair requests. Okay, 7% of repair requests that come into our system. And I'm sure with any of your guys' portfolios, you'll see the same thing, 7% we can get the tenant to solve without liability. However, we have to train the AI, so we have to say, Listen, we can have zero liability with this. So if the ceiling is over 10 feet tall, do not put a tenant on a ladder and tell them to change a light bulb. You need to know exactly like you know when a tenant says, My light bulbs out and it checks out. They moved in a year ago. That's their responsibility. Like you are not going to put them on a ladder unless you have more of that context. And so on the troubleshooting side, that is a great way where AI can respond and fully come up with here's a summary of everything we've done. And here, this request was either closed or actually, we need to pass this over to human that is a great way to use AI. You just need to make sure the data you're using is right and it's trained in the right way. Because if you don't have all of those additional specific, intricate type of examples that I mentioned for residential property management, you can get in a lot of trouble this same for an autonomous agent would be on the leasing side. It's very easy to do it early on when you get the tenant inquiries coming in, because now what you're trying to do is just qualify them. Is this person qualified for a tour, and if they are, what time do they want to see the property? Right? And how do I get them in as quickly as possible? With that, though, you have to train it. So, for example, I live in California. I live in San Francisco. You can't just say the credit score requirement is 650 because if the person is on Section eight, which you are required to accept in California, you have to give an alternative to credit in order to let them qualify. And so that's where these models to get, these autonomous AI agents. It becomes really important to be a subject matter expert in the space and be able to run this and have it train and know exactly what it should be saying in those cases. Now, Keith, I always say kind of as a rule of thumb, the farther down you get on something, the more challenging it is for it to be fully autonomous. And that's where you need a human involved. So for example, for us, once you're talking to service professional and communicating between them and a tenant, you very much need a human to be there to help with that. And same thing on the leasing side, there is no way, actually, if you know anyone, Keith, I would love to talk to them, but there is no way a tenant is going to go ahead and talk to an AI agent all the way to signing a lease and handing over the keys, especially if you're doing something like self guided tours, they're going to want someone on the phone talking to them. Hey, I'm here for you again. That EQ those quadrants I mentioned, really bringing that into play. So I found a lot of things with property management. At the beginning, you can use AI, but there's a certain point where you get to something where you say, I actually need a human to be calling or messaging, because you need that additional touch.   Keith Weinhold  23:47   That makes sense. This is not buying a weed eater. This is actually a rather intimate transaction. We're talking about where you and your family are going to live and thrive and eat and sleep every day we're talking with hemlane, CEO and co founder, Dana Dunford, about applying AI in real estate and property management more when we come back with Dana, I'm your host. Keith Weinhold   Keith Weinhold  24:12   you know, most people think they're playing it safe with their liquid money, but they're actually losing savings accounts and bonds don't keep up when true inflation eats six or 7% of your wealth. Every single year, I invest my liquidity with FFI freedom family investments in their flagship program, why fixed 10 to 12% returns have been predictable and paid quarterly. There is real world security backed by needs based real estate, like affordable housing, Senior Living and health care. Ask about the freedom flagship program. When you speak to a freedom coach there, and that's just one part of their family of products, they've got workshops, webinars and seminars designed to educate you before you invest. Start with as little as 25k and finally, get. Money working as hard as you do, get started at Freedom, family investments.com/gre, or send a text now it's 1-937-795-8989, yep, text their freedom coach, directly again. 1-937-795-8989   Keith Weinhold  25:23   the same place where I get my own mortgage loans is where you can get yours. Ridge lending group and MLS, 42056, they provided our listeners with more loans than anyone because they specialize in income properties. They help you build a long term plan for growing your real estate empire with leverage. Start your prequel and even chat with President chailey Ridge personally while it's on your mind, start at Ridge lending group.com that's Ridge lending group.com   Dolf Deroos  25:56   this is the king of commercial real estate, Dolf de Roos. Listen to get rich education with Keith Weinhold and Don't Quit your Daydream.   Keith Weinhold  26:13   Welcome back to get rich education. We're talking with Dana Dunford in a rather forward looking episode, applying AI to real estate investing and property management and Dana, I think I would wonder about if AI has much reasoning ability, as far as, why don't we say prioritization with a tenant repair request? If a tenant has a repair request because their kitchen cabinet doors are squeaky, that's probably something that needs to be handled differently and is going to be lower on the priority chain than if a sink just flooded all over the bathroom floor, and it's going to ruin the subfloor in a few hours if it's not addressed. So where are we at with AI's reasoning ability there?   Dana Dunford  26:57   It's actually pretty good at prioritization, so it can tell our team where things are from a priority list, however, where we found that we've had to train it more, and this is us putting logic into it from a large language model, is it hasn't picked up certain things. And let me give you an example. Keith, my toilets not working, right? Okay, well, the biggest question to ask is, how many toilets do you have in the house? How many are in the property? Because if there is one, that is definitely an emergency, if there are two, not so much of an emergency. And so that's where there's additional contacts that comes in, go search under the marketing description, how many toilets are in this house, right? And then confirm with the tenant the other one is still functioning. And so there's certain things like that that we've found we've had to personally train to get it to respond in the right way. But overall, like generally, it's pretty good at helping to de escalate things, turning off valves saying, hey, mop up. You would be surprised how many tenants don't just like mop up the water on the floor. They're like, Oh, I wanted to keep it so you could see what it looked like. It's like, no, no, no, you need to mop it up. And by the way, we need fans in there. And there's a point where you just get a remediation specialist there. It's one of the most expensive trades, because usually insurance is called if you're calling a remediation group, but really understanding the extent of it and stuff like that, AI is actually pretty good at that. And the reason why is that is an IQ thing, where it's something easily searchable on the internet that is applicable to all homes, right? And so it's much easier for them to be able to do the prioritization of repairs.   Keith Weinhold  28:39   Okay? So an investor can basically buy or leverage the hemlane software and tell me, is there an AI integration with it? And like, how does that interface actually look and how much does the investor need to use it? What's already built in? Tell us more there.   Dana Dunford  28:58   Yeah. So we have a repair coordination. So when we build features, we build features to solve problems, not to like call it a feature, right? And so there's one feature we have called repair coordination, and that is to end to end, coordinate your repair all the way from troubleshooting to confirming work is completed and paying the service professional on your behalf. How we get that done. We don't think the owner really cares, as long as it's a five star experience for them and a five star experience for the tenant. And so what we've done in our approach has been, you always have humans that you start with, and these are people who are trained specifically in all of these things we've been talking about. Then what you do is you add AI in, and it's not quite yet a co pilot, a co pilot, is actually helping, like, make those decisions, but it's making the humans faster. And then the humans can come back to us, our repair coordinators, and say, Hey, listen, this is where the AI fails a bit. This is where I had to replace something in the AI before I clicked send. And. That is a really good way to do it, because I've seen out there, and I'm even though I'm in Silicon Valley, I'm in San Francisco, like aI Mecca, I'm probably more conservative on using it in part because of tenant landlord law and just what can go wrong. And so for me personally, it's like, I see sometimes out there where people's like, use our AI repair coordinator and it's fully AI. And it's like, yeah, but we've seen cases where the AI fails, just like I mentioned, where my car asks me to take over the wheel and and that's where I think that we're just not quite there yet, and we need to give it more time, you need to make sure you're using the right technology for it, but that's where I feel like it's almost more like an assistant to me versus an actual replacement or a co pilot yet, but it will soon get there.   Keith Weinhold  30:55   Well, a lot of times the producer or I guess, landlord, in this case, they want to use AI, but consumers don't really want to consume AI content. You can imagine, if a tenant had a problem, they don't want to feel like an AI was used all the way through the process and was never involved. So tell us more about that. I mean, how do the tenants take it?   Dana Dunford  31:17   Keith, I love that question so much. Because one I think sometimes technology companies are not transparent of what is AI and what is not AI. Yeah, I think the first thing you need to do is be transparent that it's aI talking to you. If you don't do that, you've suddenly lost trust, right? Sometimes they'll brand it as a person, but it's really not. So that's the first thing I would say. The second thing I would say is, if the AI solves what they need, we have found in a very delightful way. We have found that they don't care if it's AI, if they're chatting and it's so fast and the answer is their question, then they don't care that it's aI doing it, or human they just care about, what is my problem, and how do I get that solved? Right as quickly as possible. I think if AI was slow, they would care, like, they're like, Oh, it's a slow support agent, because they're too cheap to, like, invest in support. But no, they actually get their questions resolved. We have occasionally had tenants who have said, Hey, this didn't help me. You know, connect me with an agent, and then we connect them right away with an agent. But what's interesting in those cases is the AI actually had the right answer, so it gave them exactly the answer. But the person was like, I just don't want to talk to AI. Then the question is, how do you actually change it to make them want to talk to AI? And a lot of it has to do with that. EQ, how do you add it to make it such a delightful experience for them, where you're adding so much more in? And how you say, like, Does that help answer your question? I'm happy to like say it in a different way, if that is helpful. So I think a lot of times when someone says, oh, the AI answers that, but people just want to talk to human. It's really more that the AI didn't answer it how they wanted it to be answered, or it asked too many obnoxious questions, where the person's like, just let me talk to human. You're asking me the wrong questions. This is not applicable, and that's really where you need to have a better level of where your technology should be when you're responding to someone   Keith Weinhold  33:20   just quickly. Dana, how is it integrated with dispatch, with that sink flooded all over the floor? Example, would the AI know to contact a plumber versus just a handyman that works at a lower rate? So how does it work with dispatching?   Dana Dunford  33:35   They would before anything is dispatched, because it's another human involved. We do have, at this moment, we still have humans involved checking it, but it would know because of a couple of things we have. One is preferred service professionals. So who do you want to go out? First, second, third, fourth. Then of those service professionals, what do they do? Is it just septic, you know? Do they do full plumbing, whatever it may be, and then also, what that person's hours are like, if it's a weekend and it's an emergency and someone doesn't work weekends, you're not going to call that service professional. You're going to call the next one in line who is available. So all of that is built into it, but we still always have humans look it over to say, is that the right category? Are they dispatching the right service professional? All of that, eventually that can just take over with AI doing it. But at this moment, we still put humans involved, because most services have a service call, and we need a person to say, Yes, I made that decision to send that person out, just because, you know, could be $89 and for everything service calls add up, so we want humans to make that better for you?   Keith Weinhold  34:40   Yeah. All right, so we still have a good level of human involvement. Well, Dana, before I ask how our listeners can learn more about hemlane, what does investing in real estate look like in five years? Since you are rather forward looking there   Dana Dunford  34:56   yeah, So I think there's a couple of things right now. Keith, we had spoke. And right before this show started about how challenging it is. It's a slow real estate market. Yeah, it is. I still think people will regret if they don't purchase now versus in five years. You know, I still think you should be looking for those great deals where someone has to sell and the price doesn't matter as much and you don't have as much competition. So when you look five years out, it has to become easier to invest and manage Real Estate. Today, to me, it's still a broken process. It's still so challenging to get anything done, it's still so manual to get everything done, and it's also you're dealing with people, and people get exhausted by that, like the drama and stuff like that. So I think in five years, you'll have less of that, there will be much more standardization. And an example I would give is, like, with the taxi industry and Uber Right? Like, a very consistent quality, you know what you're going to get, you're going to get from point A to point B. We need the same thing for real estate, with what you're investing in? How that happens? There's a lot of great technology companies out there doing things exciting. Things are like fractional ownership and tokenization. I think that is something that online, being a little bit more passive is going to be a lot easier. I think remote first investing is going to be the way to go, people are going to feel so much more comfortable investing not in their backyard, which I know Keith, you and I are huge proponents of. And then I also just think that in the case of how many people are going to be focused on who's their tech partner versus just who's their local partner? I think that is going to be another thing, because of all of this we mentioned with AI and those who are using more technology, even just to source the deals. I'm not talking about management. I'm talking about straight from the start, or how you finance it. Anyone who is using more technology and better technology is definitely going to win in this space.   Keith Weinhold  37:02   Yeah, investing out of state continues to grow in popularity, and platforms like hemlane, with the right AI integrations can help reduce that friction in still a pretty high friction industry over the next five years. Well, Dana, I think you really going to get the wheels turning for a lot of listeners here, if they want to learn more about hemlane, what's the best way for them to do that?   Dana Dunford  37:26   Yeah, you can go to www.hemlane.com We've everything from free packages to manage your properties to much more full service, comprehensive with that repair coordination we spoke about just please do mention this interview slash podcast, specifically Keith and GRE and you will get 20% off your first year there. So please do make sure to mention it.   Keith Weinhold  37:50   Oh, thank you for doing that for our listeners. Dana Dunford, it's been valuable as I knew it would be. Thanks so much for coming onto the show.   Dana Dunford  37:57   Great. Thanks so much for having me.   Keith Weinhold  38:02   You Brenda, how much does it cost for an investor to use hemlane? Well, there's a free software package where you don't have to leave a credit card or anything like Dana mentioned. Their website will show you that monthly. There are a few packages and fee schedules, but they all have 14 day free trials too. Now, if you use a professional manager, it's less likely that hemlane can help you. If you self manage, you can book a free demo right there from the top of their homepage. It's really easy to find. They can help you with tenant screening, background and credit checks, listing, syndication, online rent collection, tracking rent payments, late fees, and they've got dashboards for lease and tenant status, also everything to do with streamlining maintenance requests, work orders and some of the logistics of your repair coordination, H, E, M, L, A, N, E, hemlane.com, you might like the demo. You can mention GRE for 20% off your first year. That is kind of Dana to do that for us until next week, when I'll be back to help you build your wealth. I'm your host. Keith Weinhold, don't quit your Daydream.   Speaker 2  39:20   Nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of get rich Education LLC, exclusively   Speaker 3  39:40   The preceding program was brought to you by your home for wealth building, get richeducation.com Transcribed by https://otter.ai

So the government shutdown is supposedly ending - but not soon enough apparently for our Producer and his travel travails. We catch up this week on the Mamdani win and the fallout as well as the latest ongoing controversies with our favorite anti-Semites. On the Israel front, Hamas are stuck in tunnels, brawls are happening in Bnai Brak and Bibi gets a post January 1st invite to NY.  Lastly, we visit some of the latest from Russia and their AI inititatives.    ________ **  Learn how to create wealth without sacrificing your values, families, or faith. Pre-order now and claim your bonus: instant access to Daydream to Dreamjob—the can't-miss webinar! **   Order The Million-Dollar Part-Time Job   Visit: https://kodeshpress.com/product/the-million-dollar-part-time-job/ ________ ** Town Appliance - For All Of Your Appliance Needs! ** No matter the budget, Town Appliance will get you the right appliance for your needs and give you the most value for your money. https://www.townappliance.com/ Call/Text/Whatsapp: 732-364-5195 ________ ** Join Now or Create Your Own Five Star Experience With Project Mesorah! ** Project Mesorah's trips are always memorable and even life changing, but if you want private tours with amazing chefs, tour guides, and speakers, Project Mesorah has you covered! Visit them at: https://www.projectmesorah.org/ Or call: 845-570-1943 ________ We have a call-in number where you can hear the cast! Tell your friends and family who may not have internet access! 605-417-0303 To Call In From Israel: +053-243-3287 Also! Subscribe for our bonus content by phone! Available at the same number. ________ Get official KC swag and show your support to the world! https://kiddushclubmerch.com ________ Subscribe now to keep us going and access bonus content! https://buymeacoffee.com/kiddushclub/membership   Follow us: Instagram: https://www.instagram.com/kiddushclubpodcast/ Twitter: https://twitter.com/kiddushclubcast Join our WhatsApp chat: https://2ly.link/27DRp Send us you thoughts comments and suggestions via email: hock@kiddushclubpodcast.com  

Register here to attend the live virtual event "How to Scale Your Portfolio, with Tenanted Cash Flowing, New Construction Properties" on Thursday, November 13th at 8pm Eastern. Keith discusses Billie Eilish's views on billionaires and contrasts her stance with Grant Cardone's, emphasizing the value billionaires bring.  Hear about the Fed's decision to end Quantitative Tightening (QT), predicting lower interest rates.  GRE Investment Coach, Naresh Vissa, joins the conversation to highlight the benefits of new build properties, such as lower maintenance and higher tenant quality, and mentions a 10% cashback incentive from builders.  Resources: Register for the event at GREwebinars.com Episode Page: GetRichEducation.com/579 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com GRE Free Investment Coaching: GREinvestmentcoach.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  For predictable 10-12% quarterly returns, visit FreedomFamilyInvestments.com/GRE or text  1-937-795-8989 to speak with a freedom coach 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— GREletter.com or text 'GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript:   Keith Weinhold  0:00   Keith, welcome to GRE. I'm your host. Keith Weinhold, should billionaires even exist? Why do so many people think that interest rates of all types are headed even lower than as a real estate investor, how to identify and capitalize on an opportunity in this era? It's something that I've never seen before. Today on get rich education   Speaker 1  0:27   since 2014 the powerful get rich education podcast has created more passive income for people than nearly any other show in the world. This show teaches you how to earn strong returns from passive real estate investing in the best markets without losing your time being a flipper or landlord. Show Host Keith Weinhold writes for both Forbes and Rich Dad advisors and delivers a new show every week since 2014 there's been millions of listener downloads of 188 world nations. He has a list show guests include top selling personal finance author Robert Kiyosaki. Get rich education can be heard on every podcast platform, plus it has its own dedicated Apple and Android listener phone apps build wealth on the go with the get rich education podcast. Sign up now for the get rich education podcast, or visit get rich education.com   Corey Coates  1:13   You're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education.   Keith Weinhold  1:29   Welcome to GRE from flatiron, Manhattan to Flatbush, Brooklyn, across New York City and 188 world nations. This is Get Rich Education. I'm your host. Keith Weinhold, it's the longest federal government shutdown in US history. This whole thing has now lasted longer than most gym memberships. I guess the GDP stands for government doesn't produce, hmm. Before we get into our core investing and real estate content today, Billie Eilish, the singer, recently made some public remarks on whether or not billionaires should even exist. Yeah. Now if you're not familiar with her, Billie Eilish is known for her kind of unique style, sort of these baggy clothes, neon hair, avant garde fashion, and she has a reputation for being outspoken about a lot of things like mental health and body image and environmental issues. Now, in general, I respect people for speaking their mind, whether I agree or not, because a lot of people are just afraid to do that. Let's listen in to this short clip on what she said. You might have heard this because it was pretty widely broadcasted. Eilish spoke after receiving recognition at the Wall Street Journal innovator awards. This is courtesy of the AP. And then I'll come back to comment.   Speaker 2  2:58   We're in a time right now where the world is really, bad and really dark, and people need empathy and help more than kind of ever, especially in our country. And I'd say if you have money, it would be great to use it for good things and maybe give it to some people that need it and love you all, but there's a few people in here that have a lot more money than me, and if you're a billionaire, why are you a billionaire? No hate, but yeah, give your money away. Shorties. Love you guys. Thank you so much.   Speaker 3  3:40   First of all, without explicitly saying it, she's basically referencing how inflation widened the canyon between the haves and the have nots and GRE listeners that have acted have been on the right side of that canyon. I actually want to give Billie Eilish some credit here. Giving is virtuous. That is a good thing. In fact, next month, I plan to discuss the pros and cons of giving here on the show as we approach Christmas. Billie Eilish, she's certainly not a hypocrite either, because she's given away more than $10 million of her estimated $50 million dollar net worth. She's into feeding people and climate initiatives that right there is giving away more than 20% of your net worth, and that is really kind. Now, you heard her say there's a few people in here that have a lot more money than me, and she's right. Mark Zuckerberg was in that room. His net worth of over 200 billion means that his net worth is more than 4000 times greater than Billy eilish's. It sounds loosely like she's. shaming him for not giving away more of his wealth. And I don't know just offhand how much Zuck gives away, but this is where my credit to Billy Eilish stops. I think that it's okay for a person to be a billionaire. I wouldn't question that. I mean, a lot of times it meant that that person was willing to take risks that others would not dare try. A billionaire probably means you're a person of great value, and that you've hired hundreds or 1000s of other people, creating jobs for them. A billionaire has almost certainly created a product that society values. Jeff Bezos pioneered one day delivery. Zuckerberg connects people through his meta platforms. And now I'm not going to say that either one of those billionaires are perfect people. They are flawed, just like you and I. Billionaires probably pay more tax than the average person as well. That supports the infrastructure that you and I and everybody use, like building bridges or creating a fiber optic network. I would expect that a billionaire would be a giver as well. And see, if you're a billionaire, you have more ability to give than the average person does, you can make a greater impact. And see, this is where things really break down and not make sense. So if Billie Eilish is net worth is 50 million, Oh, apparently that's just okay. That's fine with her. But once it gets to 20 times greater than that, which is 1 billion, then it's not okay. So that means the line is drawn somewhere in there. That makes zero sense to me. The ceiling on what you're supposed to have in net worth is between 50 million and 1 billion. Like, I really do not get the logic on that one. And you know, a guest that we've had on the show here, Grant Cardone, whether you like him or not, he has had some on point remarks about these Billy Eilish comments himself to the question that she posited, which is, if you're a billionaire, why are you a billionaire? Cardone's answer is, if you're a pop star, why are you a pop star? Billy said, give your money away. Cardone's response to her is, give your music away. That's some food for thought there. That's my take on the Billy Eilish remarks on whether or not billionaires should exist. And if you want to hear Grant Cardone and I's conversation here on GRE, that was episode 264 the title of it is Keith Weinhold and Grant Cardone 10x your wealth number 264, a lot of listeners like that episode saying something like it was a dream to hear grant and I together for the first time. Like that, their favorite sales trainer on their favorite real estate show. You can listen by either scrolling way back to get rich education episode 264 in your podcatcher, or you can listen directly by going to get rich education.com/ 264,    Keith Weinhold  8:11   now the Fed has said that they are going to slow or end Qt, next month. All right, when Jerome Powell says something like this, what does that really mean to you as an investor? What can you expect ending QT? Well, you probably already know that QE quantitative easing that has the effect of creating dollars. Qt is the opposite. It has the effect of destroying dollars. So if they're ending Qt, this helps keep more dollars around in the future. So ending Qt then, like we expect soon, that really parallels a lower interest rate environment, because see lower rates already make dollars flow more freely. You probably remember the analogy that I introduced to you on the show earlier this year about how lower rates are like lowering the height of a dam wall. It makes it easier for water to flow, so then lowering rates makes it easier for money to flow, and that's because low savings account rates make people get money out of those vehicles. Okay, that's that low dam wall and low borrowing rates make that money flow as well. People will unlock dollars if rates are low, late last year, the Fed dropped rates a full 1% then they didn't make any moves for a while, until late this year, they've now dropped rates another half a percent. That's the environment that we're in. So then more QE and less QT. That further eases the flow of dollars, and it correlates with even lower rates that are coming in the future. Now it doesn't mean that they will. I'm not saying that they certainly will. There is just that tendency, that correlation. So we had pandemic era QE there about five years ago, that ended as we moved to Qt in 2022 and now what we're doing is unwinding Qt, moving back toward more flow, and it surely gets more technical than that. Ending Qt allows the Fed to expand its balance sheet again. Treasuries and mortgage backed securities, once matured, can now be replaced, and that injects liquidity into the system once again, and that is where we're going. Bank reserves are reaching ample levels again, and there is no need to put liquidity stress on money markets. A lot of these moves are here. What they're here for is to help ease the concerning labor market. It's been almost exactly three years now since chatgpt launched, and a while back, I mentioned how companies were newly interested in hiring the shiny new job that didn't exist before the AI prompt engineer that was one of the hottest jobs. Well, yeah, that was true back in 2023 but not so much. Now. A lot of companies have figured out that the employees that wanted to keep their job, well, they figured out real quick how to be the Ask AI, good questions guy, and we are seeing more layoffs later today, my guest and I will talk about that, and also he's going to make somewhat of a future mortgage rate forecast, or at least talk about the direction that they're going in. I think you're really going to like that. I don't predict rates myself, but sometimes a guest will. That's what's happening today. My point here is that with Qt ending, which again lowers the damn wall height and eases the flow of money, that parallels the fact that we have lower interest rates now than what we had one year ago, and we have lower interest rates now than what we had two years ago. As well, be mindful that you cannot get it all as a real estate investor. You cannot get soaring employment and low interest rates together. You cannot get those two things together, at least not for long. High employment means high rates. Low employment means low rates. Today's guest, and I will get into that as well.    Keith Weinhold  12:43   Well as we've had lower rates, hence a lower wall height, don't buy property and expect that you'll be able to refi into a lower rate within a year. If it happens, great. Don't buy expecting rents to go up or rates to go down, although many think that will happen. Just enjoy it. If it does, rent vesting has been on the rise lately. Yes, rent vesting. What that means is when you pay rent in the property where you live, and then the only properties that you own are rental properties. Rent vesting makes sense if you live in California, New York City and Boston, since rent to price ratios are so low there, and then you invest your dollars inland, that's how you can live in a high cost place and yet still benefit from cheap rental property and have income streams from them. You might remember that some months ago, I interviewed two listener guests on the show, everyday listeners, just like you, and California based investor and GRE listener, Joshua Fang, told us about his rent vesting. He pays rent in his primary residence, since the rent to price ratio might be three tenths of 1% there and then he owns property in GRE marketplace markets, I think it was Memphis and elsewhere where you're benefiting from, say, eight tenths of 1% that is called rent, vesting, investing in properties that make sense that you buy through GRE marketplace. And remember when Josh told us that passive income gives him time to enjoy life and even stop and watch two lizards for 15 minutes? Oh, what passive income can do. It's the quirky things that you remember. See. The point is that smart people in high cost states are rent vesting, if that's what you've got to do in order to own real assets. Then do it get on the right side, as this difference between the haves and the have nots just keeps expanding. I just did something that you might find interesting over the weekend for the first time in years. I visited that first fourplex building that I ever owned, which is also the first piece of real estate that I ever owned, that blue colored fourplex, and it is still blue. The address of that property is 925 east, 45th court, and it's in Midtown Anchorage. It has never been a pretty neighborhood, and I confirmed that it still is not. It looks a touch worse than when I owned it. I straightened up the curb appeal more than today's owner does. I bought the four Plex over 20 years ago for $295,000 and at that time, on the day that I bought. The total rents were $2,900 because it was 725 per door. I just looked on Zillow. And do you want to guess at its zestimated value today? Yes, it cost 295k back in 2002 and today, the Zestimate is 625k I don't know what today's rents are. My guess is that they're just short of $6,000 for all four units combined, two bed, one bath, 960 square foot units, really plain vanilla, boring looking housing, but it's certainly not like a crime ridden slum. It's just that depressing looking block that's just chock full of disorder and these other four Plex buildings and dumpsters all over the place. But yeah, that's how it all began for me. I visited that building again, and I haven't owned it in a while. I 1031 exchange out of it and into an eight Plex in 2013 if it weren't for that building, you would not be listening to me right now, and you would not have heard of me, because this show wouldn't exist big thanks to the three and a half percent down FHA loan for someone that came from humble means, like me.    Keith Weinhold  17:03   Last month, I did a running race that goes up a ski jump that was pretty cool. It gets so steep that you have to grab onto a cargo net to pull yourself up. It's almost like a rope ladder. I did not win. I got fifth out of 21 competitors in that race. Hey, I like to get out and physically challenge myself. After talking real estate all day, my body weight is up a little. It's currently sitting at 178 pounds. That's 81 kilograms for our European listeners, and it hit its recent bottom of 172 back on the Fourth of July. That's by design. I need to be really leaned out for a big Independence Day race every summer. You know, I'm one of those guys where I still cannot compete with bodybuilders because I'm too lean, and yet I don't win running races because I'm too bulky, so I'm more of an all around guy. I do about seven different sports, and that's exactly how I win nothing and always get like, fifth place or worse. This major mammal has got to keep himself moving, In any case.   Keith Weinhold  18:17   next week here on the show, we'll talk to a Harvard grad. She's super interesting. She used to work at Apple, and then she founded an AI centric property management company so that you can use her platform to self manage and leverage AI. But are we at the point where your tenant would really talk to a chatbot? Would that fly? And if society is there, well then do property management fees and everything start trending towards zero. I'm going to ask her about that. That's next week. As for today, you know, the world series ended about a week ago, and what I did is that I watched 10 commercials during the World Series, and then I jotted down the name of each sponsor, and here's who the World Series advertisers were just in this one segment where I paid attention to them. They're all big brands that you've heard of atnt Liberty, mutual nature made brand items like vitamins and supplements, Starbucks, Coors, light, Qdoba, Capital One, Home Depot, crest, white strips and Jim Beam, all right, those were the 10. What do those 10 have in common? More or less, any ideas there those 10 products and companies are all for consumer products. That's the common link. And that might seem so obvious that you wouldn't even think of it. Well, this is because most ads are for consumer products. Those ads fuel consumerism. And there's nothing wrong with that at all. That. Represents an economy. In fact, I use some of those very companies in my personal life.    Keith Weinhold  20:04   But here's the difference here at GRE our sponsors help you produce, not consume. Think about that as you listen to me in this spot for freedom, family investments and then Ridge lending group, then I'm coming back for more with a terrific guest.    Keith Weinhold  20:23   You know, most people think they're playing it safe with their liquid money, but they're actually losing savings accounts and bonds don't keep up when true inflation eats six or 7% of your wealth. Every single year, I invest my liquidity with FFI freedom family investments in their flagship program. Why? Fixed 10 to 12% returns have been predictable and paid quarterly. There's real world security backed by needs based real estate like affordable housing, Senior Living and health care. Ask about the freedom flagship program when you speak to a freedom coach there, and that's just one part of their family of products, they've got workshops, webinars and seminars designed to educate you before you invest. Start with as little as 25k and finally, get your money working as hard as you do. Get started at Freedom family investments.com/gre, or send a text. Now it's 1-937-795-8989, yep, text their freedom coach, directly. Again, 1-937-795-8989,   Keith Weinhold  21:34   the same place where I get my own mortgage loans is where you can get yours. Ridge lending group and MLS, 42056, they provided our listeners with more loans than anyone because they specialize in income properties. They help you build a long term plan for growing your real estate empire with leverage. Start your prequel and even chat with President chailey Ridge personally while it's on your mind, start at Ridge lending group.com that's Ridge lending group.com   John Lee Dumas  22:08   this is Entrepreneur on fires, John Lee, Dumas, don't follow Money. Make money. Follow you with get rich. Education.   Keith Weinhold  22:22   So we have a familiar voice back on the show. It's an in house discussion here with our own GRE investment coach. And like I've told you before, he's got both the formal education with his MBA and the self education, because he's an active real estate investor for four years now, he has helped you completely free, usually over the phone, sometimes on Zoom. He learns your own personal goals and then helps you find the market that's right for you in fitting those goals. And I've had listeners like you tell me that, you know, I can't believe that getting his actionable insight is free, and now he can help you best, though, if you're ready to own more income property, he even helps connect you with the exact property address, like say, 321, raspberry Street in Huntsville, Alabama. So it's great to welcome back to the show and provide the listener with a respite from my mouth breathing rhetoric and discourse, it is GRE investment coach. Naresh Vissa,   Naresh Vissa  23:24   thanks a lot, Keith. I can't believe it's been four years. It's been four amazing years, and congratulations to you and to GRE for being around so long and together, we have grown our listenership, and we appreciate all of you listeners, listening out there, for sure,   Keith Weinhold  23:42   real estate activity has slowed down overall, but things are still really vibrant. Here at GRE we see more activity than we saw last year, and when we talk about increasing activity, Naresh, the Fed, looks to do that when they reduce interest rates, that incentivizes businesses to borrow, that incentivizes consumers to spend, because, for example, they're not getting as high of a yield and their savings account. So now we're here in this fed cutting cycle. Tell us what that means from your perspective.   Naresh Vissa  24:15   We talked about this a few months ago when I was on the podcast at the Federal Reserve. I predicted that the Federal Reserve would begin a rate cutting cycle, and that this cycle would be extensive. It would not be an overnight, 100 basis point cut, or anything like that we saw in March. So that rate cutting cycle has begun, and they continue to cut. And we did an entire episode on President Trump and the name calling with Federal Reserve Chair Jerome Powell, whose term ends in the middle of next year. It's May of next year, when he's leaving. And with all that pressure, I predicted that the Fed would begin its rate cutting cycle. We are in the. Cutting cycle right now. They did a few cuts last year and stopped, which I thought were mistakes. But with that being said, we are in the thick of this cutting cycle. We are going to see more cuts moving forward. And what that means you're already seeing it. As a real estate investor, you are seeing, I don't want to say low interest rates, but lower interest rates compared to where we were a year ago, compared to where we were certainly 234, years Well, maybe not four years ago, but three years ago, we are seeing far lower interest rates, and we will continue to see interest rates, in the sense of mortgage rates, plummet as a result of this. So enjoy the low rates while they last, because they're not going to last forever. Nothing lasts forever, but the Federal Reserve, you throw in the government shutdown, I think it makes sense that the Federal Reserve continues to cut, because there's no telling where inflation is going to go. The experts thought that inflation would go up, up, up, up and be a significant problem. They've been saying that since the election winner last year or the election night last year, we haven't necessarily seen that. We have seen inflation somewhat go up, but we haven't seen that runaway inflation that many of the experts predicted as a result of the tariffs, as a result of the rate cutting, I think it definitely helps that number one, Doge, cut several government programs and cut a lot of government spending, not as much as they thought they would, but they cut enough to where they're limiting the amount of federal government spending. We've also seen mass layoffs, mass layoffs in the public sector, which has seeped into the private sector as well, because many of these private companies, like an Accenture, for example, many of these tech companies that were getting subsidies from the government, that funding has stopped, and that has led to layoffs. Now, what layoffs do is layoffs create, I don't want to say deflation, but layoffs are disinflationary, right? And we've seen significant layoffs, like I said, since February of earlier this year, when Doge was in the thick this government shutdown has led to mass layoffs as well. So we've seen 10s of 1000s of people well, we've seen hundreds of 1000s of people furloughed, if not at least a million people furloughed now, they will end up getting their pay, but we've seen 10s of 1000s of people laid off as a result of this government shutdown. And what that means is, again, this is very disinflationary. That's less money that the government is spending moving forward, not just right now, but moving forward. So there's a savings there that's also more people who are probably going to hold on to their cash as tightly as possible as they find new work. So this is, once again, disinflationary. And what does all this mean? All of this, to me, seems disinflationary. It goes against the narrative that when you cut interest rates, inflation goes up. It goes against a narrative that when you implement tariffs, inflation goes up, and that's why we haven't seen the runaway inflation that many so called experts were predicting. I think moving forward, the Fed continues to cut because of the weakness, at least when it comes to the job situation, because of the weakness with jobs, and because of unemployment, it's gone up somewhat. I think the Fed ends up continuing their rate cutting cycle through the end of Powell's term, and it could be just a series of 25 basis points every time they meet. Maybe if things get if there's something that they don't like, they up it to 50 basis points at one of the meetings. But the bottom line is, I think they're just going to keep cutting until Powell is gone, and then Trump will put in his guy into the Fed chair. And by that point, we may have cut enough to where there's not much left to cut yet, and that's when we're going to see there's a chance that could happen, or there's a chance the next guy will pick up where Powell left off and and do series of cuts as well. But what that means is that mortgage rates, we can expect, that's one of the most common questions I get from GRE followers, yeah, it's where do you see mortgage rates going? Because these people, they're not a lot of our followers, they're not following the intricacies of the market. Most of our followers have full time jobs as doctors or dentists or engineers or IT workers, and they're not following the ins and outs. And so the most common question that I get is, where are interest rates going? And I've been pretty spot on for the past few years, minus a few mistakes that I thought the Fed made. But I'm very confident when I say, just like I said when I came on earlier this year, that interest rates are on their way down there, and they are not on their way up.   Keith Weinhold  29:51   Just wait until this administration gets their guy in as the Fed chair. It almost feels like we're going to see a Javier Malay Argentina. President, you know, coming in with the chainsaw, they want to cut rates so aggressively, this administration, and Jerome Powell has sort of been a buffer against that, and Naresh has been using the term disinflation. I don't want you, the listener, to confuse that with deflation. Deflation means an increase in the purchasing power of your dollar, something that we rarely see. Disinflation means a slowing in price increases, meaning the rate of inflation goes down. And yes, I think it's been pretty obvious, and I've stated on the show before as well, that the Fed cares more about the employment situation than they do the inflation situation, probably, and you as an investor, you need to be careful what you wish for, because low rates sound really good, and they can be, but high employment typically correlates with high interest rates of all types, and lower employment typically correlates with low rates of all types. Rates get lowered because they know that the economy needs the help so you can't get both. You can't get both high employment and low rates. That condition doesn't persist for very long. And the Naresh during this part of the cycle, it's really been unusual and interesting at how new build properties have such advantages for investors today, including the aberration that the median new build property costs $33,500 less than the median existing property. That data is per the NAR when we think about new build property. Well, wait, first of all, that sounds amazing, and some people are incredulous about that, but there are reasons that the average new build property costs less. A lot of times the size is smaller. A lot of builders are building further from city centers. So I think before an investor gets in and buys a new build property, one really important question for them to ask is, oh, okay, well, how far is that property from an employment center. But otherwise, it's really the right time in the cycle for new build. New build can make your investment more passive. You know, you've got new fixtures, of course, and a warranty, and you're going to have lower insurance costs as well, typically, on a new build property. And Naresh, as you're talking with our followers and investors about new build property. I'm just kind of wondering, do you get more people that want to self manage the property because it's new build, because they figured that their maintenance and repair requests are going to be fewer? Or what do you see in there?   Naresh Vissa  32:35   No, not at all. Because the strength of GRE is that we connect investors, we coach investors so that they can own real estate around the country. They're not owning real estate in their neighborhood or in the area that they live in. We only focus on markets that make sense, generally linear markets, state friendly landlord friendly states, those other markets we are focusing on. So even with new builds we are seeing, I would say 100% of investors saying, hey, I want professional property manager, managing the property that's extremely, extremely common, that is the norm. I will also say, with new builds you brought up earlier, when you introduced me, I own several properties. The last two properties I bought were new construction. Were new builds. Yeah. And I personally comparing the first six properties of rehabs to my last two, which were new builds, I've had far fewer issues with the new builds, not just far fewer issues. I would say overall, the profitability has been greater with the new builds, despite the pro forma initially showing that I would barely Break Even now, I did buy several several years ago before all this appreciation and inflation hit. But it certainly helped a lot to have new builds where the maintenance is far lower and where the quality of the tenant is extremely high. So I generally recommend our investors, if you have the capital available, and generally, just to keep things simple, I say if you have $100,000 in liquid cash ready to go, there's no reason why you shouldn't be buying a new build. Would I waste my time with the rehabs, with the burrs. I mean, those could be profitable too. You should never say no to anything but the new builds. I've slept better at night because of those reasons, because I know at least for the first 10 years that there aren't going to be any major problems and the quality of the tenant is going to be far higher. So I'm a huge fan of new builds, not pre construction. Pre construction means you're buying a plot of land, and then you hope that the builder is going to build a home on top of it. And most of the time, the builder does, but many times, as we saw during the pandemic, there were key. Countless stories around the country of developers selling pre construction and then nothing ever got built. They ended up flipping the land and generating a profit off of it. I don't recommend those at all, but new construction is the way to go. And I'll also add one more tidbit about the previous topic that we talked about, regarding interest rates also remember that lower interest rates mean that the government and their debt they're going to be paying, they can refinance their debt and pay lower interest on their debt when interest rates go down. So that's also going to help reduce the the deficit, and it's going to help reduce the debt as well. So that will help bring inflation down.   Keith Weinhold  35:42   We're talking about buying a property that's already built with new construction, and in a lot of cases, like we'll talk about shortly, it's already tenanted for you as well. So it really reduces the guesswork and the waiting. And of course, new build properties tend to appreciate better than existing properties. So, yeah, tell us more about new build properties, because they tend to be in Florida and Texas that really has an outsized number of them right now. And that's where the builders are really giving incentives when we talk about appreciation, and where we think about appreciation going in the future. You know, appreciation has been really tepid, really boring. Prices have even contracted a little in some Florida and Texas sub markets, but with the long term trend, visual capitalists just shared a terrific map from today to 2050 for example, the Texas population is expected to grow 27% one of the fastest growth states that there is going to be. And a lot of people say, Oh, isn't it going to pass California in population soon? No, not anytime soon. It'll be decades. California is expected to grow 8% over the next 25 years, but Texas is a place where the numbers still can make sense on new build, because you have some overbuilding. So some builders are really incentivized to give you a good deal.   Naresh Vissa  37:06   Well, there are several markets in general. Let's just talk about it. You use an important term, which is appreciation. With new builds, the likelihood of appreciation is greater. This is statistically backed up. You can go check your sources, but the likelihood of appreciation is far greater with new builds compared to older rehabs, a property that's 50 years old, six years old. In fact, those properties probably appreciated early on in their life cycle, and that's just generally how it works. So with new builds, I say look, cash flow is still important. Cash flow is one of the tenets of real estate paying five ways. It's one of the core tenets of get rich education. But you also have that appreciation play with new builds. Again, it's about markets, because if you're buying a new build in, let's say a California or a New York or a New Hampshire, some really anywhere in the northeast, then it is somewhat of a speculative play, depending on the price point, depending on a lot of different other factors. But when you're talking about the markets that we operate in at GRE you brought up two of them, Florida and Texas. There are other markets, like in Tennessee and Oklahoma, where we have new constructions, and they are also positive, cash flowing, high appreciation place. So you just never know what's going to happen. I bought a new construction, for example, just outside of Memphis six years ago. It was just outside of Memphis in Mississippi six years ago, and I bought it for purely cash flow purposes. The pro forma looked good. Property was brand new. It was near several areas where there were many jobs. So I said, Hey, this is a good cash flow play. And I even remember asking my sales agent, hey, what do you think about appreciation? I usually never buy for appreciation, but this is a new construction. What do you think? And he said, You know what? I don't know if this is really going to appreciate that much. I'm not really sure about that. So I said, that's fine. I like the cash flow. Well, fast forward, six years later, as I said, we you just never know what's going to happen. We saw this inflation. We also saw an influx of people migrating into Tennessee, migrating into Mississippi, especially that Mississippi Tennessee border migrating into the Memphis area. Now we have the Trump administration, sent in the National Guard  about about a month ago, sent in the National Guard into the Memphis area, and they haven't left. They're still there, and crime has is at least based on the numbers that crime has really the National Guard has made a big difference on crime, and that's usually the number one deterrent for a market like Memphis. The point that I'm making here is that you just never know what's going to happen with these new construction builds. If you can get positive cash flow, I always tell our listeners. Shouldn't buy a new construction that's negatively cash flowing. You still want to protect yourself. You don't want to be paying money out of your bank account to own a property. Money should be coming in. So you still want to be positive cash flow. And the appreciation is a huge, huge plus, even in areas that you would not think or that you would not expect to appreciate all that much.   Keith Weinhold  40:22   Appreciation just is not as much of a story over on some other platforms, perhaps, or the way that people think about it, because if you pay all cash, appreciation isn't that good for you, but you're leveraged at four to one or five to one with a 20 to 25% down payment, which can really give you those outsized rates of return, which aligns with what we talk about here at GRE Well, we have a live upcoming virtual event. It is this coming Thursday, and before I ask you if you have anything else to tell the audience here as we wrap up, Naresh, it is hosted by you. So it is co hosted by our own in house investment coach Naresh, and our guest that you heard last week here on the show radio veteran Adam. The Event Thursday is called how to scale your portfolio with tenanted cash flowing new construction properties where you can get up to $41,000 cash back after closing, we talk about these builder incentives. So today's real estate market is really giving buyers opportunities for new builds that I haven't seen, maybe ever. Builders are incentivized to move their properties, and we've made headway with builders to get you up to a 10% cash back incentive at closing when you purchase, you can either take the cash at closing or boost your cash flow by buying down your rate, perhaps get some rent credits, so learn how you can take advantage and really prime yourselves for moves today that are going to lead to your success in coming years. And we have tenanted again, tenanted already occupied new build properties in hot markets like Houston, San Antonio, Dallas, Texas, ready for you to purchase with up to that 10% builder incentive so that you can cash flow from day one. And these properties are really in high quality communities, primarily owner occupied, high appreciation, upside, solid rent growth. So learn the strategy, learn the markets and even see available new build income property. The benefit of you attending is that you can have your questions answered in real time by Naresh or Adam. You can sign up for that now at grewebinars.com It is Thursday, November 13, at 8pm Eastern. Any last thoughts as we lead into Thursday, Naresh?   Naresh Vissa  42:45   Gre, webinars.com gre, webinars.com go to that website to register for our free online special event. It will be live. I'm going to be there with Adam. You heard on last week's podcast, we've got some great deals and great incentives, like what you said, Keith, and they're all new constructions. They're all new constructions, mostly in Texas. And these are major markets in Texas too. We're not talking, yeah, many of our followers and listeners, they see a new construction, and they're like, I've never heard of this place in Alabama, or I've never heard of this place in Oklahoma. These are in legitimate suburbs, areas outside of Dallas, Houston, San Antonio, some of them are even in Dallas, Houston, San Antonio proper. So these are markets that everybody is familiar with. It's not some podunk town that you may have seen on our GREmarketplace or GRE spreadsheet in an Arkansas or in Alabama. These are mostly in Texas. The incentives are great, and these are national builders as well. These are not small, no name, Mom and Pop builders. These are national builders who we are working with to offer these special incentives. These are names like you've heard. Many people have heard. Some of them are publicly traded companies like an LGI, that's a very large national builder. That's who we've partnered with to get these deals so grewebinars.com is the link to register for our online special event. GREwebinars.com. I hope to see all of you this Thursday,   Keith Weinhold  44:31   major builders, major markets and major incentives on new build property. You're going to hear more from Naresh on Thursday, it's been great having you back on the show.   Naresh Vissa  44:43   Thanks a lot. Keith   Keith Weinhold  44:50   oh yeah. Naresh does a better job of hosting GRE webinars than I do. In my opinion, you'll remember that I hosted them myself until 2020 23 but you know, maybe I'll come on to a future event for just the first five minutes on one of the upcoming ones, and give an intro before I let the real pros take over. This event is called really just what it is, how to scale your portfolio with tenanted cash flowing new construction properties. It's co hosted by Naresh and Adam, who you met last week. I have never seen this before, where the builder is giving you a fat 10% discount after closing, 10% you can use those 10s of 1000s of dollars to buy your rate down into the fours or other things like use it toward a down payment on another property, pair it with DSCR loans and pay no mortgage insurance on either property. You could buy one property or two properties or 18 properties through the event and DSCR loans. You might remember that means no time consuming income verification, no concerns about your debt to income ratio or W twos or tax returns. We'll show you how to do it all. Like Naresh was saying, we eat our own cooking. We ourselves. Here at GRE are investors too, and we are buying new build for our own personal portfolios. The time is right for this. It wasn't a few years ago, and a few years from now, it probably won't be either. Hundreds are already signed up for it. It is this Thursday, at 8pm Eastern. It's GRE, last event of the year. This is it one last time attend by signing up at grewebinars.com that's grewebinars.com Until next week, I'm your host. Keith Weinhold, don't quit your Daydream.   Speaker 4  46:59   Nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of get rich Education LLC, exclusively. You   Keith Weinhold  47:27   The preceding program was brought to you by your home for wealth building, get richeducation.com  

Register here to attend the live virtual event "How to Scale Your Portfolio, with Tenanted Cash Flowing, New Construction Properties" on Thursday, November 13th at 8pm Eastern. Keith introduces a profound life perspective: humans are typically allotted only 30,000 days. What will you do with the days you have left? Every moment not spent building wealth is a moment lost forever. Adam Schroeder, a real estate investment strategist, joins the conversation to talk about current opportunities with new build properties with significant builder incentives and the potential for high appreciation. Resources: Switch to listening to the podcast on the Apple Podcasts or Spotify app, as the dedicated GRE mobile app will be discontinued at the end of the month. Show Notes: GetRichEducation.com/578 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com GRE Free Investment Coaching: GREinvestmentcoach.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  For predictable 10-12% quarterly returns, visit FreedomFamilyInvestments.com/GRE or text  1-937-795-8989 to speak with a freedom coach 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: Keith Weinhold  0:01   Keith, welcome to GRE. I'm your host. Keith Weinhold, the real estate market is slow when this happens in a cycle. What does it mean to a real estate investor? What type of return can you really expect today? I'll tell you exactly, and you'll be surprised. Learn more about new build properties and why investors often prefer DSCR loans over conventional loans today on get rich education,   Keith Weinhold  0:28   since 2014 the powerful get rich education podcast has created more passive income for people than nearly any other show in the world. This show teaches you how to earn strong returns from passive real estate investing in the best markets without losing your time being a flipper or landlord. Show Host Keith Weinhold writes for both Forbes and Rich Dad advisors and delivers a new show every week since 2014 there's been millions of listener downloads of 188 world nations. He has a list show guests include top selling personal finance author Robert Kiyosaki. Get rich education can be heard on every podcast platform, plus it has its own dedicated Apple and Android listener phone apps build wealth on the go with the get rich education podcast. Sign up now for the get rich education podcast, or visit get rich education.com   Corey Coates  1:13   You're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education.   Keith Weinhold  1:29   Welcome to GRE I'm your host. Keith Weinhold, yes, America's favorite shaved mammal on a microphone is back with you for another wealth building week. Just the talking primate that's heavily mortgaged here. I'm also a landlord still waiting for a security deposit from back in 2018   Keith Weinhold  1:51   Hmm, oh, I'm so into self deprecation today that I forgot about the place names hitting you, from Dover, Delaware to   Keith Weinhold  2:01   Andover, Massachusetts and across 188 nations worldwide, you're listening to get rich education. There's a realization that can sharpen your investor focus when you think about the fact that, in a sense, how little time you are allotted in your life. It's something that I've thought about more. You're only given about 30,000 days. That's the typical lifespan of a human being, and that goes for both shaved mammals and others. Well, you've already spent 1000s of your 30,000. The question is, what are you doing with the rest? At some point, people understand or they better that they need to go out on a limb. There are people less qualified than you living the life you want to live simply because they chose to believe in themselves, and really, that's the moment everything shifts. belief. It's not a feeling. It is a decision backed by action. Too many people learn this lesson the hard way. They discover, often too late, that relying on one income stream is the most dangerous financial plan of all. A job can vanish. Federal Workers found that out amidst a government shutdown, a business model can change. AI can intrude. A paycheck can stop. But when you own assets that pay you month after month, no matter what you're doing, you slowly begin to untether yourself and move toward freedom. And here's the truth about pain and money. Poor and middle class households work for money, so to them, that's why every dollar spent feels like a little loss. It can even hurt, and that is why they hesitate even on opportunities that could change everything. The wealthy, on the other hand, own assets that pay them, so therefore every dollar spent feels like a seed, because it grows when you own enough income property, you can move away from constantly asking yourself, can I afford this? And start asking, What will this investment earn me? Over time, this mindset shift changes everything at that time when other people's money starts working for you, not the other way around.    Keith Weinhold  4:45   And here's the thought experiment I use, take the hourglass of your life and flip it, watch the sand fall. That's time, 30,000 hours, 30,000 grains. That is. Is time the one resource that you cannot get more of. So every day you delay prudently investing the sand does not pause. It just keeps flowing. But you can choose how that time compounds the sand that's left over and hasn't fallen through the neck of the hourglass. Yet that is your opportunity to build multiple income streams from real estate, from ownership and from leverage, it is your chance to replace anxiety with well autonomy. Every family with generational wealth can trace it back to one person, one risk taker who decided to stop trading hours for dollars. They believed in ownership and control. They believed in themselves. They acted before the sand ran out. If you've already started real estate investing, well, then you've already begun to break that cycle. If you've done it for a time, you're going to have more time, more income and more options than you had before. That is worth celebrating and scaling, because the best time to start was yesterday, and the next best time is before the next grain of sand hits the bottom.    Keith Weinhold  6:22   Later today, I'll talk about taking this sentiment and moving it towards something very specific and actionable. Now, in this era, the real estate market is slow. That is in terms of transaction volume, there just aren't as many sales. Sometimes this whole thing feels more sluggish than Jabba the Hutt after Thanksgiving dinner.   Keith Weinhold  6:49   5 million is a typical number of existing homes sold every year in the US. 5 million. That's normal. That's baseline during the pandemic frenzy. It reached over 6 million, and now it's about 4 million. That's why I say that housing transaction volume has slowed, and appreciation is only about 2% that's below historic norms, and rent growth is like barely doing push ups. It's two to 3% in single family homes volume now it has picked up a little here lately with lower mortgage rates, and so have home prices. Redfin now tells us that home price appreciation is 3% but most outlets say 2% some analysts that are more optimistic than me call today's housing market healthy. They don't call it slow. And why is that? Well, it's the healthiest it's been since covid, because now you have a good balance of buyers and sellers. The real estate market isn't so miserably deprived of inventory like it was back in 2022 in 2023 but I am going to go with slow now, as you know, I coined the phrase real estate pays five ways back in 2015   Keith Weinhold  8:09   But how exactly does that hold up in today's slow transaction market? Could an income property buyer's return even be disappointing now? Well, let's do it. Let's determine what you can expect if you purchase an investment property here in these slow market conditions, we'll determine your total rate of return in year one. And you know, this will be sort of like dating someone that's not the first date, but to really get to know them, to know if they're potential spouse material. You want to see them at their worst and be sure that they look good on their bad days. So let's just be conservative and use 2% home price appreciation. Say that you buy a 200k single family rental. Now a 20% down payment means 40k down. Sellers are willing to give you concessions now, say that they're going to pay your closing costs, because the 200k that you're paying is their full asking price, so it's your terms and their price. Well, say that you don't get any cash flow. The rent only covers the expenses exactly. Okay, so we're really painting on a not so pretty picture. Here, it would seem. Here we go, in a slow market, the first of five ways you're paid is that erstwhile appreciation. Your property only appreciates 2% from 200k up to 204k not so exciting, until, of course, as we know around here, you realize that your return is your gain on your skin in the game, your 4k gain divided by your 40k down payment gives you a 10% ROI. There it is leverage. Didn't just show up. It brought donuts. 10% just from the first of five ways you're paid. The second way is cash flow. Say that rent minus your 160k mortgage payment here and your operating expenses, that merely breaks even, like I was saying. So 0% additional return from cash flow. And before we add on numbers three, four and five to get your total rate of return in a slow market, let's take a moment to check on Jabba. How's Jabba doing? No, Jabba still hasn't gotten up from that heavy Thanksgiving dinner. It's still a slow market. We've confirmed that we're going to continue   Keith Weinhold  10:41   the third way you're paid, as any GRE listener knows by now, is with that ROA return on amortization, also known as principal pay down with a 7% mortgage rate in your 160k loan on this property, an amortization table shows you 1625 bucks a tenant made principal pay down. Divide that by your 40k down again, that is another 4% return. All right, so you add that to your 10% from leverage depreciation, and you've now got 14%   Keith Weinhold  11:17   next is your tax benefit. It's a 150k structure value, not the full 200k because raw land can't be depreciated. Multiply that by 3.6% depreciation, that means you've tax sheltered 5400 bucks. That is like a phantom loss that you get to show the IRS. Just a little more math here, and this is as far as you have to stretch it, in visualizing numbers in an audio format at a 24% income tax rate. That is 1296 saved on 40k down again, another 3% for you, and your running total is a 17% ROI before we get to the last one, which is inflation profiting, not inflation hedging, which almost everyone mistakenly says in real estate investing, it is inflation profiting.    Keith Weinhold  12:13   Your 160k loan gets eaten by 4800 bucks at a 3% inflation rate, divided by 40k down. And you know, inflation is usually the villain. Now it is the hero. You've got another 12% from inflation profiting. And here's the sum in this slow market, your total year one rate of return is 29%   Keith Weinhold  12:43   and you're like, my gosh, did that really just happen? Now you might want to skip back on some parts of that to help make it crystallize in your mind. I've got to tell you before I ran these numbers in this slow market with this 2% appreciation and even assuming zero cash flow, I thought your total rate of return would be in the low 20s, not this high, not 29%   Keith Weinhold  13:09   the numbers don't lie. They just don't get enough attention on CNBC.   Keith Weinhold  13:16   Now I did use shorthand and simplify. You would also have to adjust your 29% for inflation, just like you do for any investment. So then about a 26% inflation adjusted return for you. Wow. And if you want to know more about what I just used shorthand on, you can always watch the five videos on the five ways real estate pays for free at getricheducation.com/course that's get richeducation.com/course, the most valuable video course you'll ever see on real estate investing, but a huge investor lesson here, an epiphany today, is that it does not take a high growth market to build wealth. Even when it seems like real estate's half asleep, it can still work five jobs for you, we could be near the nadir of the cycle here.    Keith Weinhold  14:16   Appreciation has picked up in recent months, with mortgage rates being lower than they've been in a while, but even when appreciation and rent growth slows now, you can see that the ROA tax benefit and inflation profiting just keep working overtime. The bottom line here is that income property still pays a lofty 29% if you buy today, even in a slow market, and this is at a time when investors, a lot of them, don't know what to do with their money, since every market type seems to be near an all time high, and people don't want to buy in at those high levels, and savings accounts pay you less than a gumball machine, owning investment property proves its resilience. I mean, this is why we do this. It's kind of like stocks can party with a surge in an upcycle, and then they can bust and boom and bust and boom. But all the while, instead of partying, real estate just keeps its head down and works the night shift for you, your wealth quietly compounds in the background while the rest of the world panics or debates interest rates on LinkedIn or something.    Keith Weinhold  15:33   All right. Well, with that in mind, where can we take advantage of that real estate return and expect to do even better with it, even if the market did stay slow. Well, builders have unsold inventory in places like Texas and Florida, like I mentioned before, and to a lesser extent, in parts of the West as well, but the prices are too high out in the west for a cash flow investor. So today, you can buy at a discount in a way that you absolutely could not during the height of the pandemic.    Keith Weinhold  16:06   A guest and I are going to talk about a specific opportunity in today's market, and then how you can exploit it. The National Association of Homebuilders has even noticed that home flippers have switched gears, and increasingly, what flippers are doing is instead buying new build properties and then renting them out, because new builds have lower upkeep costs come with a lower mortgage rate because the builder is buying it down for you, they have lower insurance and they attract a better quality tenant that stays longer, even if the HVAC did break. That's okay, because new build homes often come with a warranty. The smart money knows that new build is where the opportunity is today. That's something that I've discussed for a while here, but today we're getting more actionable. CNBC let us know that the CJ Petra company reports that investors now make up the highest share of Homebuilders in five years. And you'll recall that we've had CJ Patrick, company founder, Rick sharga, on the show a lot with me here the past few years. Some say that the smart money is waking up again. I don't know investor activity is steady, but it's not really that much. It only seems like a lot because the wannabe owner, occupant, buyer has been priced out. So it's better to say that investor activity has been steady. Investors bought fully 1/3 of single family homes this past summer, and that is up from 27% in q1 I'll discuss that more soon.    Keith Weinhold  17:44   Hey, you know one thing that makes GRE different is that our show sponsors are here to supplement and benefit your specific investor activity. And another thing is that I use them myself. Thank God we are not here to tell you about pneumococcal pneumonia or your moderate to severe plaque, psoriasis. I don't even know what that stuff means. Freedom, family investments and Ridge lending group. I very know what they're about. I'm a satisfied client with each of them myself. So listen in.    Keith Weinhold  18:21   You know, most people think they're playing it safe with their liquid money, but they're actually losing savings accounts and bonds don't keep up when true inflation eats six or 7% of your wealth. Every single year, I invest my liquidity with FFI freedom family investments in their flagship program. Why fixed 10 to 12% returns have been predictable and paid quarterly. There's real world security backed by needs based real estate like affordable housing, Senior Living and health care. Ask about the freedom flagship program when you speak to a freedom coach there, and that's just one part of their family of products, they've got workshops, webinars and seminars designed to educate you before you invest. Start with as little as 25k and finally, get your money working as hard as you do. Get started at Freedom, family investments.com/gre, or send a text. Now it's 1937795898, 377958989, yep, text their freedom coach directly. Again, 1-937-795-8989,   Keith Weinhold  19:32   the same place where I get my own mortgage loans is where you can get yours. Ridge lending group NMLS, 42056, they provided our listeners with more loans than anyone because they specialize in income properties. They help you build a long term plan for growing your real estate empire with leverage. Start your prequel and even chat with President Caeli Ridge personally while it's on your mind, start at Ridgelendinggroup.Com, that's Ridge lending group.com   Kathy Fettke  20:05   this is the real wealth network's Kathy betke, and you are listening to the always valuable get rich education with Keith Weinhold.   Keith Weinhold  20:14   I'd like to welcome in a new guest to the show. He is a real estate investment strategist that's been working in the media industry since 2001 and throughout the career, he's held the title of a local news reporter, podcast host and producer for nationally syndicated companies like NPR. He's been in real estate nearly 20 years. Adam Schroeder, welcome to the show.    Adam Schroeder  20:48   Thanks for having me on. I really appreciate it.    Keith Weinhold  20:50   Yeah, I'm looking for your read on today's real estate market, just the general landscape overall, because Adam, I've shared that national transaction volume is down about 25% appreciation is still there, although it's been slow. Rents are just steady. We do, however, still have this supply that is down among entry level homes, something a lot of media articles broad brushstroke and don't understand, and really it's still a valid question to ask, even today. Is there any better risk adjusted return than income property that's bought, right? So what are your thoughts on the overall real estate investing landscape?   Adam Schroeder  21:30    Yeah, overall real estate investing, it's kind of like what you said, entry level housing. I remember I saw a heat map. This was probably five or six this was pre covid. It was maybe even seven or eight years ago. It was a heat map that showed, like, new construction, home pricing, and, you know, there was like 500,000 and up. Was just this massive chunk. And then there was all these ones, ones that were under about 300,000 it was around, like six or 8% or something like that. It was really, really small. If you look around, it hasn't gotten bigger. And so the question of inventory and availability and pricing, they're never going to talk about it on the national media, because there is no entry level home in Chicago, in New York, in LA, you're not going to find that. I mean, you're paying 200 grand for a doghouse in the backyard, if you're there. And so we are finding the entry level housing, but I think right now, an oversupply of inventory in some of these markets is a very good opportunity for people. If you're buying for with the right fundamentals, if you're buying in an area that's growing and has good long term, you know, 8,10, 15 year diagnostics. Then if you're buying now with builder incentives and all of that, yeah, your year one, year two, year three. Appreciation may not be the greatest because of that oversupply, but if you look at what's happening now with construction starts in a lot of places, builders have gotten scared off. They're not really starting them now. So if you're buying new now, in 2,3,4, years, all of the inventory will be sucked up, and there won't be new homes coming to the market. So you're going to be one of those people who has one of the newest homes in the area, more people are going to want to be getting in. And so your appreciation and rent growth is much more likely to be growing. So that's one of the things I love to look at, is I look at what new home starts, what happened in the past, what was oversupplied, but now, who's what cities aren't building. And if I know what cities aren't building, then I can compare it to, okay, well, you know, there are some cities in California that aren't building anything I'm not going to buy in California, but there are some cities in Minnesota, in Oklahoma, you know, in Texas, where they're not building anymore. And if it's landlord friendly and can cash flow and all of that, Sign me up. I'm bullish on parts of this, of the United States real estate market, not the whole United States real estate market.    Keith Weinhold  23:55   It's been pretty well documented that parts of the nation are overbuilt. However, especially in Florida and Texas. And I brought up the point months ago Adam that if you buy, say, a new build income property in temporarily overbuilt pockets today, five years from now, looking back five years onto today, you could be like, Yeah, I bought five years ago, when some areas were actually overbuilt, and I snagged a deal, and the builder was even giving me incentives like my rate at that time, because, you know, long term, the demand is going to be there and that the absorption is going to be there. So it's about knowing what's happening and then identifying the right time in that cycle. In today's environment, some feel that DSCR loans are a better option for investors, and what that means a debt service coverage ratio loan is that you qualify for the loan not with your personal income, but instead with the property's income. Do you see more investors employing dscrs?    Adam Schroeder  24:55   We see a ton for a really good reason. That is simply put, especially if you're utilizing these builder incentives, buy down rates on DSCR frequently outperform ones with conventional like some of the lenders we're working with. I look and let's say you're putting 4% I looked at it this morning with an investor with 4% of purchase price towards your loan on a DSCR loan, you're down to 5.49% on a DSCR, but conventional, you're at 5.75 that doesn't happen for the most part. It's just something that right now, the risk profile of investors is allowing the rates to be either at or better than conventional many times. Plus, people love to put their properties in LLCs for protection, and they'll worry with conventional, oh, what if a due on sale clause gets triggered, even though it's really hard to trigger that, if you worry about it, well, why not just get a loan that's equal or better than a conventional that doesn't go on your you know, debt to income and can go straight into the LLC to begin with, and then your hands are clean the whole way through, and you're not having to worry about transferring titling. Honestly, my wife is about to murder me because I have some properties that were meant to go into an LLC two years ago that are not currently in an LLC.   Keith Weinhold  26:17   Well, hopefully you'll live until the end of this interview. Tell us more about DSCR loans, and maybe some that, no you talked about the upside, maybe some red flags and some things to look out for, times when we would not want to employ that loan type.    Adam Schroeder  26:30   A lot of it with the DSCR you're looking at like you said, they're not evaluating you necessarily. Now you do have to show reserves. You do have to show that the property will perform on its own. But sometimes full doc loans with conventional can be the way to go, because, like I said, in the past, it used to be that DSCR loans were three quarters of a percent, or a full percent higher than the DSCR. Or, yeah, DSCR was higher than the conventional. And so if you could get a four and a half with a conventional versus a five and a half on a DSCR. It's well worth the extra paperwork that might come with doing it to save yourself that money and really build up your cash flow. We are just in a very awkward time of investing, where the investors for DSCR loans, the people who are buying those mortgages, are not the same people who are buying the Fannie Mae Freddie Mac secondary loan market, and so they just have different risk profiles, which allows the rates to be different. So that's really the big thing. Is, if you've still got your Fannie Freddie slots, it's worth talking to your lender and saying, what would it look like if I did this loan? What would it look like if I did that loan? Where am I? But when it's all said and done, if you're really close or equal, I would almost always skew towards the DSCR to protect myself, go straight into an entity and keep it off of my debt to income ratio, plus on dscrs. You also have the option, and we don't recommend this for every property or even for certain people, depending on risk profile, but you have the option to do an interest only loan with 20 or 25% down, which allows you to do kind of what we call cash flow management, where people get worried about interest only loans and say, Well, I'm not building equity. I'm not doing this, not doing that. Well, you're not, but you're also, you can still put principle towards your loan every month, right? Like a principal loan, maybe you're throwing 200 bucks a month, a principal towards that. Well, with an interest only loan, you can still put that $200 in. But what it means is, if there's a month where maybe you have some repairs that need to be done, or something like that, don't pay the principal and on the interest only, you're still okay on a principal and interest. If you can't pay that, if you just pay all the interest, they're still going to say, well, Keith, you're late on your loan, right? And so it gives you a little bit more flexibility, but it's not for everyone. It's not for every property, so definitely talk with lenders about that. But conventional loans don't offer that. DSCR loans can.    Keith Weinhold  28:53   There's always opportunity in every real estate market. It's just identifying what those are and then ethically exploiting the opportunity. So we're talking about buying in areas that are temporarily overbuilt utilizing DSCR loans. And another advantage in this market, which is an aberration, is the fact that new build properties, like few times in history, if any, actually cost less than renovated existing properties.    Adam Schroeder  29:20   Yeah. I mean, when you can get into, you know, an A class neighborhood with 80% owner occupied, 90% owner occupied, and you're getting in for way less than the median cost of a home in the US. You mean, you're getting in for, I mean, we've got new builds in the 220 range on some of them up to 400 you know, which is still below the median cost. Yeah, that's really good. If you're looking to get into any a class neighborhood, or even B plus neighborhood, finding a property that's 200 $250,000 in those areas is tough. It's just tough. And so especially because as pricing went up for everything with inflation, you know you can't do. Do a cheap rehab anymore. If you're going to do a good rehab, you can't do a cheap rehab. I talk to our teams all the time and tell me, Hey, I did, you know, I only spent $70,000 to renovate this property and like that is a lot of money. I know you're getting it out whenever you do the burn, you know, or sell to an investor, but still a lot of money to put in to get there.    Keith Weinhold  30:20   Well, then let's talk about identifying possible growth markets for long term investing success. New build properties tend to appreciate better than rehab properties. And you know what's funny, Adam, I was just sharing this with my audience on a recent episode. I largely disagree with this long time investing axiom in real estate that says appreciation is just icing on the cake. I think I know what they're saying that doesn't help you out on a month by month basis, but we're in real estate investing for the long term and long term, more of your returns typically come from leveraged appreciation than they do on the cash on cash return from cash flow. So to me, appreciation is not just icing on the cake. In a lot of cases, it is the cake. And really, that's something that new build can offer more of.    Adam Schroeder  31:09   Yeah, I mean, it's almost in, especially in today's market, it's almost like cash flow is the icing on the cake. You know, you can get a property that, you know, is in that really good area, like we're talking about, and is, maybe it's appreciated a little bit now, but it's very likely to appreciate a lot later. If you're only making, if you factor everything in maintenance, vacancy, all of that, and you're making $100 a month, that's solid, you know, if you look at it, and if you're in those areas, if you appreciate 5% on a $300,000 property, let me tell you this, you're not going to make $15,000 in cash flow that year on that property. So if you look at the people who are really retiring on cash flow, are usually the people who have 100 200 300 doors or something like that, and they play the law of large numbers. I don't want to play the law of large numbers personally, I want to have really good quality assets and have fewer of them, and really work on having positive cash flow, but having the equity growth that allows me to pull money out tax free and either buy more investments or utilize how I want in my life.    Keith Weinhold  32:16   Exactly. If your property cash flow is $100 a month and it's a single family home. Some people say, Oh, that's awful. You would need 100 of them just to get 10k pass it per month. Now you're thinking wrong, and you're oversimplifying it like to your point, with the 300k home and 5% appreciation, that's 15k in one year, you're building equity that can be borrowed against, tax free, and you're building up that lump sum cash flow windfall down the road, if you will, in real estate pays five ways and cash flow matters, but it's only one of five profit centers and all that. So yes, we're so aligned on that one, appreciation is not just the icing on the cake, it's substantially more than that. Well, I've got something to announce. Adam here is going to co host, along with our own longtime investment coach, Naresh, an upcoming live virtual event. And it's called how to scale your portfolio with tenanted cash flowing new construction properties. And it aligns in every way with the trends that we've been talking about and that Adam and I have been identifying here. The event takes place next week. But first, tell us more about what you and the ray shall be speaking about at the event there. Adam.   Adam Schroeder  33:29    one of the biggest concerns people have about real estate, and one of the things that can eat in your cash flow more than anything, is vacancy. I mean, vacancy can kill your deal whenever it's all said and done, because it's one thing, if you're, you know, break even or $100 a month positive cash flow. But whenever you've got a vacant property and you're negative $1,500 a month, that can hurt, that can hit the wallet. And so what we really love, if you can hit it, is a tenanted property that's new and is in a growing area, yeah, and we've got that thankfully. I mean, we've been able to work some really good relationships with national builders that have allowed us to get into they were doing a lease to purchase option with tenants who wanted to buy their property but didn't have it saved up, and these people didn't exercise their option, but they've renewed their lease so you can come in and buy a property that has them in place. It is a house that they wanted to buy. So how long are they likely to stay? Probably quite a while. They like the school district, they like the neighborhood. They like everything about it. You're coming in, you've got the builder incentives we talked about before, and you're just in a positive cash flow position already. Now we're in Texas, which I was actually funny enough. Earlier, right before this interview, I was reading about the states that are going to grow the most, projected until 2050 and they expect Texas to grow by nearly 9 million people between now and believe it was 2050    Keith Weinhold  34:55   everyone's asking, when is it going to pass? California is the most populous state in the nation.    Adam Schroeder  35:01   Well, it depends how many people. In California are part of that 9 billion we've gotten quite a few of them there. As somebody who lives in Texas, and we're in the big cities too. We're not in the Podunk Texas towns you think about in, you know, east or west Texas. We're talking Houston, Dallas and San Antonio, which are three of the top, I believe, 15 largest cities in the country. We're getting some really good incentives. You can get up to right now, 10% builder incentive. So a $300,000 house, you have $30,000 that you can use. That's massive. Yeah, you can get that money back after closing. We can buy your rate down. And we have some people who have literally taken the whole 10% and put it towards a fixed 30 rate at four and a quarter percent. Wow, they are locking themselves in at four and a quarter. Or we have some people who say, like, we were just talking about cash flow is not a concern for me. I'm going to take half my down payment back, and I'm going to go buy another property, because I'm only in this property for 10% now, and so they're able to be, you know, roughly break even in a good growing area, and they can acquire a second property. So you're buying two properties without mortgage insurance for essentially a 30% total down payment, and you're getting your 10% back if you buy the second property. So it's just really incredible time. Like you said, we haven't seen a time like this before. We were able to get into the wholesale division of these builders and provide these incentives that I've personally never seen before. Some of our reps are buying these homes themselves, so we're putting our money where our mouth is. It's just a great time, especially like you were saying, these homes the inventory, take advantage of the opportunity, right? And there's an opportunity that's presenting itself. And if you look at the long term demographics of Houston, Dallas and San Antonio. It's an arrow pointed up. That's what those areas are.    Keith Weinhold  36:46   100% I mean, it's almost as predictable as anything. There's never a guarantee, but continued population growth and obvious need for housing there is about as close as you can get. That's massive. 10% back, 380k purchase, $38,000 back at the closing table to use in discount point buy downs completely or half on discount point buy downs and half to pocket and use on another property or use on your next vacation or whatever you want to do. That's massive.    Adam Schroeder  37:18   Yeah, it's fantastic. One thing I forgot to mention about Houston. It's one of the things I love that people don't think about has the third most headquarters of fortune 500 companies in the country, behind New York and Chicago. So people don't think about that when they think of Houston. But I love to throw that out there, because it's there. I love Houston. I lived there for seven years. It's where I met Naresh, actually, and would happily move back there again   Keith Weinhold  37:42   right? Houston has moved so far past the monolith of just having oil be the economic driver. So we're talking about tenanted new construction properties in pretty hot markets, Houston, San Antonio and Dallas ready for you to purchase with that 10% builder incentive. And these are in communities that are primarily owner occupied, so they do have that high appreciation potential and that potential for solid rent growth. So on the live event, the webinar that you are invited to attend from the comfort of your own home, what you can do is just learn more about this overall strategy and why the time in the market is right for this. Learn more about those geographic markets themselves and then their drivers, and even see available new build income property. And the benefit of you attending a live is that you can have any of your questions answered right then and there. You can sign up at grewebinars.com, and Adam, before I ask you if you have any last thoughts, that event is next week. It is Thursday, November 13, at 8pm eastern time again, you can sign up. It is free. Space is limited, so that's something that you want to do now at grewebinars.com, any last thoughts? Adam   Adam Schroeder  38:51   yeah, I will just remind people there's always a reason to buy real estate, and there's always there's always a reason not to buy real estate, and depending on which one you subscribe to, you can always find those opportunities, or you can scare yourself off. So, you know, find the right opportunities that are there for you and your investing style and jump in. Because if you look at what's happening right now. When rates start coming down, owner ox are going to jump back in, and that tends to lead to prices going back up. Like Keith said, these are 85% owner occupied areas, and you're setting yourself up for success. And if you do it now, you can always refi later if rates come plummeting down right so find the right areas. Find the reasons to buy and go for it.    Keith Weinhold  39:41   This is a time when builders are really willing to give you a break. Take advantage of it if you possibly can. Adam, it's been great having you here on the show, and our audience looks forward to seeing more of you next week.   Keith Weinhold  40:00   Yeah, some real potential here. I'm rather excited for your future as a listener next week, investors like DSCR loans, since the qualification looks at the property, not you, and see conventional loans are more for owner occupants. They're fine. They work for investors too. But with dscrs, besides their other advantages, they're a check on making sure your property is profitable. It is just your rent divided by your debt service. That's all it is. So for example, with a $1,000 rent and a piti payment, principal, interest, taxes and insurance payment of 800 bucks. Well, then your DSCR is 1.25 Investors love them because there's no personal income verification, no W twos, tax returns, pay stubs. There's no debt to income ratio bar for you to have to clear also conventional loans often cap you at 10 financed properties, and DSCR loans have no such limit, so there's faster underwriting and easier approval. But with dscrs, look out. I mean, there could be some higher fees, and you might have a three to five year prepayment penalty. But buy and hold investors often keep the property that long anyway, so grow your income streams with dscrs, even when the w2 world says no. And notably, dscrs have absolutely nothing to do with job of the hut either. No sluggy concerns there   Keith Weinhold  41:42   if you've wanted a deal on a property today, here you are with these new build incentives that are really good, better than what most builders are giving looks like. Here's your chance. One reason that the builders are giving us a deal is because of the bulk of GRE buyers. This is for you, if you might want one property or 14 properties load up with these up to 10% builder incentives, or just attend the webinar and learn more. We got into the wholesale division of these builders. We got them right where we want them. The properties are typically already tenanted. So plant your flag in the ground, and call this the pivot point. This whole thing could be a bigger deal than the first man to walk on Mars. We'll see, though, no man has walked on Mars yet, but you don't need to wait that long. Take one of your 30,000 days that you've been gifted in this life of yours, the 30,000 days you've been allotted on this earth to win back some of your future finite time. It is next week, Thursday, the 13th, at 8pm Eastern. It's also GRE last event of the year, your last chance, a live, virtual event where you can attend from the comfort of your own home or anywhere. And it's free. Registration is open now. Sign up at gre webinars.com that's gre webinars.com Until next week, I'm your host. Keith Weinhold, don't quit your Daydream.   Unknown Speaker  43:17   Nothing on this show should be considered specific, personal or professional advice, please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of get rich Education LLC, exclusively you   Keith Weinhold  43:45   The preceding program was brought to you by your home for wealth building, getricheducation.com

Keith discusses strategies for amplifying investing returns and reducing lifetime tax burdens through real estate, geography, and industry.  He compares tax burdens by state and explains how investors can leverage low-income tax states and low-property tax states.  Podcast host, investor and developer, Victor Menasce, joins the conversation to highlight the industrial real estate market, emphasizing the demand for warehousing and logistics.They touch on the potential in industrial outdoor storage and the complexities of data center investments. Reach out to Y Street Capital to learn more about their projects and the real estate espresso podcast. Resources: Switch to listening to the podcast on the Apple Podcasts or Spotify app, as the dedicated GRE mobile app will be discontinued at the end of the month. Show Notes: GetRichEducation.com/577 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com GRE Free Investment Coaching: GREinvestmentcoach.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  For predictable 10-12% quarterly returns, visit FreedomFamilyInvestments.com/GRE or text  1-937-795-8989 to speak with a freedom coach 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: Keith Weinhold  0:00   Welcome to GRE. I'm your host. Keith Weinhold, we're talking about how you can use real estate, geography and industry to amplify your investing returns over the course of your life and permanently reduce your lifetime tax burden today on Get Rich Education.   Keith Weinhold  0:21   You know, most people think they're playing it safe with their liquid money, but they're actually losing savings accounts and bonds don't keep up when true inflation eats six or 7% of your wealth. Every single year, I invest my liquidity with FFI freedom family investments in their flagship program. Why fixed 10 to 12% returns have been predictable and paid quarterly. There's real world security backed by needs based real estate like affordable housing, Senior Living and health care. Ask about the freedom flagship program when you speak to a freedom coach there, and that's just one part of their family of products. They've got workshops, webinars and seminars designed to educate you before you invest, start with as little as 25k and finally, get your money working as hard as you do. Get started at Freedom, family investments.com/gre, or send a text. Now it's 1-937-795-8989 77958989, yep, text their freedom coach directly. Again, 1-937-795-8989,   Corey Coates  1:34   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  1:49   Welcome to GRE from Milford, Delaware to Milford, Utah and across 188 nations worldwide. I'm Keith Weinhold, and this is get rich education, the voice of real estate investing since 2014 now, what do you think about a multi week government shutdown? That means there's a cut in your service level, but of course, oh geez, there's no commensurate cut in the amount of taxes that you pay. This is the government's version of charging rent on a vacant unit. That's what's happening. That's what we've been looking at in the biggest expense you'll ever pay in your life. It isn't housing, it's taxes. Before I get to how you can reduce the amount of taxes that you'll pay throughout the course of your life, which is huge. Let's pull back, and I guess it's a bit of a real estate geography riddle for you, imagine if there were a place that existed, and this place is within a 15 minute drive of a seacoast, 15 minutes of mountains, within 15 minutes of an urban core of about 300,000 people, and within 15 minutes of an international airport and a decent airport that has direct, non stop flights to Europe. Even, could that place exist all of that? I mean, it almost sounds too good to be true when I put it like that, yes, it does, and it's in the United States. On top of that, this same place with proximity, within 15 minutes of all four of those things, has zero state income tax and zero sales tax. Yes, all this is in the same place, and that's where I am coming to you from today, Anchorage, Alaska. I traveled a good bit, and I can't think of another place in the US quite like it. A quick check of Chad GPT corroborates this, saying that the US places that come closest are Honolulu, Juneau and Bellingham, Washington. They come the closest to that. Now, the biggest downside, in my opinion, is a long, dark, cold winter. Well, that's when I do more traveling, but I spend many months of the year right here in Anchorage. And my guest today, who you'll hear from later, I haven't had him on the show in years, where recently he I and his wife, Natasha, toured Anchorage. I drove them around.   Keith Weinhold  4:29   first, let me tell you about a creative way to pay both a low property tax and a low income tax, and that is no matter what state or province that you live in now, the big three taxes that people pay throughout their lives are income tax, sales tax and a property tax. Those are the big three, and when you combine those to come up with the highest and lowest tax burdens by state, you'll notice that coastal states often pay the most. They generally have the biggest burden, because coasts attract people, and therefore those highly populated areas, they need infrastructure, say, for example, more bridges, and they often have more social services for people, and it costs tax money to maintain all of that. Now, look, will people move to an area specifically because they can get low taxes there? Like is that amenity in itself an attractant? Actually, not so much. No, you do get some people to move to Puerto Rico, predominantly for that reason. But interestingly, the two states with the lowest overall tax burden, that is, when you combine income, sales and property tax, the lowest are Alaska and Wyoming, and yet they have the fewest people living there, under 1 million people each. So the two states with the lowest tax burdens are also the two least populous states. So it is not making people flock there. So where you choose to live? Oh, that has more to do with your overall quality of life. And you know that's probably as it should be. Well, whether you own your home or you rent your home, you effectively do pay property tax, because tenants end up subsidizing the landlord's expenses. Most property tax maps that you see out there, those national property tax maps, they show the average tax bill that a household pays by state, regardless of real estate values. Well, that's not so useful. You might remember that a few weeks ago in our newsletter, I sent you the best and the smartest property tax map that I have by county. You'll remember that it showed the property tax paid as a percentage of the home value, so that relative basis is what matters more. When we look at property tax paid that way, we can more transparently see that the highest property taxes are generally paid in three US regions. Those three regions with the highest property taxes are the northeast, much of the Great Plains and Texas now a 1% property tax rate is, for example, when you have to pay 4000 bucks a year on a property value of 400k That's that 1% and the lowest are in the Western US and the nation's southeast quadrant, often under 1% we're just talking about the property taxes only here. Now out west, lower property taxes, they still rarely create investor cash flow, and that's because purchase prices are too high out west, and rents don't keep up with them proportionally. But low taxes, they do adequately sweeten the most investor advantaged areas, that is in the southeast Indiana, Missouri, Oklahoma, Hawaii, and a bunch of the Mid Atlantic states. All right, so they are the investor advantaged areas that also have low property tax. The nation's lowest property tax rate is in Alabama. Roll tide, I think I've mentioned that on the show before. All right, so that's property tax, but states have to get their revenue somewhere, so oftentimes, if their property tax is low, well then they have to make up for that. So therefore their income or sales tax can be high. Now as far as income tax, each state has their own of course, the high ones are New York, New Jersey, California and Hawaii. Those are many of the high ones. But there are nine states with zero, absolutely zero, state income tax, and those nine states that are free of income tax are the aforementioned, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming and Washington gets somewhat of an asterisk that has a little wrinkle in it. That's one of the nine with the wrinkle, you'll pay zero income tax on your wages in Washington. It only applies to high earners, capital gains tax income there, all right. Well, all of that is true for everybody there, every US citizen. But here's the arbitrage that a real estate investor can create. If you live in one state and you own property in another state, you always pay property tax where the property is physically located, not where you live. I mean, any longtime out of state real estate investor knows that. So you can therefore live in a state with little or no income tax, for example, Texas, and then a Texas resident can skirt Texas's higher property tax by investing in a different state that has low property tax, like, say, Alabama or Tennessee. Oh, well, now both your property tax and your income tax are low this way. And congratulations, you have just legally exploited the tax system. Some examples of a low income tax home state where you live and a low property tax investor state where your investment property is, so that you get the best of both worlds. They are, Texas is your home state, and Alabama is your investment property state, like I just described, and then a few other scenarios, so that you can legally use the system to pay both a low income tax and low property tax. Are having Pennsylvania as your home state and Missouri as your investor property state, having New Hampshire as your home state and Tennessee is your investor property state. And then another example, having Washington as your home state and Arkansas as your investor state. Those are just some examples of combinations there about how you can live in a low income tax state and then also enjoy having your investment property in a low property tax state and see perhaps now you're doing this without having to move. Yes, investing in low property tax states. Now, of course, property taxes are set at the county or city level. They're not set federally, but just within one state. Sometimes property tax can vary dramatically, which you probably know, but two of the biggest examples of this are in Illinois, Cook County, which is Chicago, and also Miami, Dade County, Florida. I mean those jurisdictions, they have tax rates that can make wallets cry more than their surrounding counties do, and some states have maximums, legal limits ceilings on property taxes. California proposition 13 famously limits property tax to 1% of assessed value, and then the increases are capped as well. I mean this means the two California neighbors with identical homes can pay wildly different taxes, and Florida is still looking to completely eliminate the property tax. Can you imagine that? I mean, it seems doubtful that that will happen, but you can conceive of how much more desirable that would make Florida properties, and that would probably make all Florida housing values skyrocket now, just because a property has a high property tax rate that doesn't disqualify it as an investment property alone, it's just one consideration that'll show up in your proforma, your cash flow. So the bottom line is that as an income property owner, property tax is mostly passed on to your tenant, but paying a low rate still keeps you more flexible and profitable. So think of a map of states with low property taxes, sort of like a treasure map, but instead of x marking the spot, it marks where your money will go the furthest.    Keith Weinhold  13:36   And if you want real estate maps like I'm talking about here, and stories and great charts and investment opportunities that I cannot fit onto the channel. Here, you can grab them in my free weekly newsletter at gre letter.com and part of this is because I just cannot adequately describe a map or a chart to you here in an audio format. You get more in the letter free wealth, building insight every week. And it comes straight from me. 1000s of investors read it every week. Don't live below your means. Grow your means. Get It At gre letter.com Again, that's gre letter.com   Keith Weinhold  14:20   something interesting just happened when Wells Fargo released their housing forecast for the next two years. Let's discuss that between today and 2027 they expect the federal funds rate to drop by a full 1% but they don't expect mortgage rates to drop as much only about a quarter point drop over the next two years in the 30 year fixed rate. For next year, they expect home prices to rise three and a half percent, and then the year after 3.7%. looking down the road a couple years here, and this is sorced by Wells Fargo economics and the US Department of Labor and the FHFA and more. All right, so only a small reduction in mortgage rates and a pickup in home price appreciation, although still pretty moderate. Now you gotta take any interest rate prediction with a grain of salt, like I've told you here before. I personally, I do not forecast interest rates, and when you're looking at interest rate predictions, you are squarely looking at a waste of your time.   Keith Weinhold  15:34   Now, a recent Gallup poll wanted to find out what Americans consider to be the best long term investment. That's the question that the pollsters asked, what is the best long term investment? And the findings were that 16% said stocks. I mean, despite the fact that stocks only seem to make insiders wealthy, still somehow 16% of Americans consider stocks to be the best long term investments, a higher share of Americans, 23% said gold. That actually surprises me, that nearly one quarter of Americans say that gold is the best long term investment, when only about 10% of Americans own gold in the physical form, like bars or coins. And part of this could be driven by the recent hype, where the gold price has more than doubled just since last year, and it broke above $4,000 an ounce for the first time in history this month. All right, so 16% said stocks, 23% said gold. And what's number one in the Gallup poll for what Americans believe is the best long term investment? It's real estate. Ah, well, they got that right. That actually gives me a little more faith than Americans there. Now, when it comes to real estate investment, you know, there's this long running mantra or catchphrase out there that I really disagree with. I mean, you've certainly heard this before, but it just does not resonate with me. And that is, appreciation is just the icing on the cake. That's the catchphrase I am not feeling the vibe there. How in the heck is appreciation just the icing on the cake? The presumption, the inference here, is that cash flow is the main driver of an investment philosophy, and then if you just happen to get appreciation too, oh, well, that's a little sweetener. Like the mantra would say cash flow is the cake, the majority piece, and then appreciation since the icing, oh, that's only a little thing. No, that's misleading. You usually get more of a return from appreciation than you do cash flow.   Keith Weinhold  17:56   I mean, on, say, a 400k income property, what if you only get $200 of cash flow? That can happen? That's $2,400 a year. But instead, 5% appreciation on that property gives you $20,000 a year. That is almost 10x. I think what the icing on the cake, curious catchphrase means is that cash flow is important because it controls the mortgage. Well, then I think it's just better to say that appreciation is not an inconsequential thing. It's often the biggest thing. So is appreciation just the icing on the cake? No, it certainly is not. In fact, I'm going to talk more about that next week when I've got something special planned for you here on the show. What I'm going to do then is look at the ways real estate pays you five ways in a slow market, the real estate market is slow. If you look at it on a basis of transaction volume, say that you buy a property today and over the next year, you don't even get what Wells Fargo forecasts say you only get 2% appreciation and zero cash flow. Just break even on a monthly basis. I mean, there's surely some disappointing numbers, but just say that's what happens. Well, next week, I'm going to add up what your total rate of return would be even in this dour scenario, and I think that you are going to Marvel be flabbergasted at how profitable you are if you just got 2% appreciation and zero cash flow. That's next week.    Keith Weinhold  19:36   As far as today, I'm about to bring in a super smart guest that hasn't been on the show here in a few years. He's usually a fellow faculty member on the real estate guys invest or summit at sea. But he wasn't there with me this year, so we met up in Anchorage. Instead, we're talking about changes to commercial real estate that market, and the opportunities that you might be able to find there from Industrial land, an activity that well generates noise, like Bitcoin mining operations and growing data centers with the increased use of AI. And as you listen, see if you know what I mean about how he feels professorial in his approach, and I mean that in the best possible way you can learn from him. He's from Ottawa, Canada, an international conversation coming up next. I'm Keith Weinhold. You're listening to Episode 577, of get rich education.   Keith Weinhold  20:34   If you're scrolling for quality real estate and finance info today, yeah, it can be a mess. You hit paywalls, pop ups, push alerts, Cookie banners. It's like the internet is playing defense against you. Not so fun. That's why it matters to get clean, free content that actually adds no hype value to your life. This is the golden age of quality email newsletters, and I write every word of ours myself. It's got a dash of humor. It's direct, and it gets to the point, because even the word abbreviation is too long, my letter takes less than three minutes to read, and it leaves you feeling sharp and in the know about real estate investing, this is paradigm shifting material, and when you start the letter, you'll also get my one hour fast real estate video, course, completely free as well. It's called the Don't quit your Daydream letter. It wires your mind for wealth, and it couldn't be simpler to get visit gre letter.com while it's fresh in your head, take a moment to do it now at gre letter.com Visit gre letter.com   Keith Weinhold  21:46   the same place where I get my own mortgage loans is where you can get yours. Ridge lending group and MLS, 42056, they provided our listeners with more loans than anyone because they specialize in income properties. They help you build a long term plan for growing your real estate empire with leverage. Start your prequel and even chat with President chailey Ridge personally while it's on your mind, start at Ridge lending group.com, that's Ridge lending group.com,   Tarek El Moussa  22:19   what's up? Everyone. This is hgtvs Tariq al Musa. Listen to get rich education with Keith Weinhold, and don't quit your Daydream.   Keith Weinhold  22:27   Hey, it's great to welcome back a longtime industry friend. He's a senior partner at y street capital. He owns a development company that's active in nine US states and two Canadian provinces, and he's the host of the real estate espresso podcast. Hey, it's great to have back. It's been a few years. Victor Menasce, great to be here. Keith, well, you know what's different? I mean, we were together doing some sightseeing around Anchorage, Alaska. You I and your wife here just a few weeks ago. That was great to have you. And then you had a nice Alaskan cruise after that. It was lovely. It was great to spend time with you in person, where you and I have spent time together at conferences all around the nation. So thank you for that. Yeah, it was great to do some fun stuff and like, Oh, hey, this guy knows a world outside of just talking about cap rates all the time. So Victor, the commercial side is pretty dynamic, and it sure has been lately with all the changes that we've had in the world, really starting with the pandemic almost six years ago, now, that includes the industrial space and how the need for warehousing and storage has changed. So from a real estate perspective, tell us about what you're seeing there.    Victor Menasce  23:41   We're seeing a lot of changes. Of course, there's a lot of uncertainty that's been injected by the current administration in Washington in terms of international trade. But even if you put that aside the flow of goods from wherever they're manufactured to the end customer, that flow is still there. It's one of these things that often creates inefficiencies, especially as you start to think about really optimizing the overall cost. You know, if you think about what inventory costs you to have on a retail floor where you might be renting that retail space at, I don't know, 55 $60 a square foot, and it's occupying very, very expensive real estate, if you can instead put that in a warehouse that's maybe at 10 to $15 a square foot. Oh, but wait a minute, you've got a 27 or a 35 or a 40 foot ceiling height, and you're stacking it seven to nine levels high. Really, the cost of that inventory has gone way, way down because you're putting it much less expensive real estate, right? Okay, so here is one of the efficiencies of a retailer doing e tail instead of brick and mortar retail, absolutely. And you know, we often see situations where the last mile, you know, we want to get that instant gratification as a consumer, but we don't necessarily want to be having to drive to that retail space. And we don't that's. Supplier doesn't necessarily want to pay Amazon for warehousing that particular product. So often, the fulfillment is done locally, that last mile Logistics is extremely important. That's putting a lot of pressure on this category of product that has traditionally been called Flex industrial. These are those places in the industrial park that you might see an electrician or a landscaping company or a plumber or anyone like that that has an office at the front of 14 or 18 foot Bay at the back and a bit of inventory. A lot of that product right now is being pulled off the market for many different reasons. Some of that's just disappearing and that land is getting repurposed for residential. Some of it's disappearing because people are putting gyms and pickleball courts and things like that and those types of products. Some of it's disappearing because people with exotic car collections want to use that space for a man cave. There's many different things that are demanding that particular product, and there's very little of it getting built. So that's another area right now that is under a lot of pressure. On the demand side, not a lot of new supply and rents are going up much, much faster than they otherwise should be. Talk to us more about the industrial space from the supplydemand perspective, what do people want and what do people need? It varies widely. There are companies that are in manufacturing, they will often look to refresh their investment in equipment. They may not have the capital, so they will sometimes do a sale, lease back of their building, of their facilities, so that they can then repurpose some of that capital onto into the equipment side, so that they can maybe modernize their manufacturing. That's another area where we see significant shifts happening. In industrial we also see a lot in logistics, where the most efficient way to move goods is a 200 year old technology called rail, and it's still alive and well. I mean, if you think about the cost of shipping a container across the country, you're going to spend about two cents per ton mile to move that by rail, or about 10 cents per ton mile to do it by truck. So that's a five times difference in price. That means a container from Los Angeles to New York is going to cost you about $1,400 if you're moving it by rail, or about $7,500 if you're moving it by truck. But if you're now part of the rail system, there's now logistics that you have to worry about at either end. And so if you want to make all of that work, those transfer hubs become extremely important, and there's just not a lot of them,    Keith Weinhold  27:38   okay, so it might only cost 1/5 as much per ton mile to move a good over rail as it does road. But you're sort of talking about the logistical challenge of, oh, getting it that last mile from the rail Terminus to the end user.   Victor Menasce  27:53    absolutely. And there can be a lot of cost associated with that last mile. So if you can solve that problem for the logistics companies and lower their cost for that last mile. That's got significant value, and that's another demand for industrial land. And very few cities are adding industrial land to their master plan. You know, warehouses don't vote, so they don't tend to take other land and zone industrial In fact, if anything, it goes the other way. There's a lot of pressure to take land that was zoned industrial and rezone it for commercial or for residential. In fact, we see that in a lot of cities.    Keith Weinhold  28:30   Now, you the listener, if your entrepreneurial wheels are turning, you can see the opportunity for, Hey, can I get in and help solve the problem in that last mile demand creatively. How do I think I could get in? How do I think I could do that, as long as that demand is sustainable? Victor, when we talk about industrial real estate, like we are here as real estate investors, one of the things that we often think about is site selection. Tell us more about that through the industrial lens   Victor Menasce  28:58   I think there's a couple things that matter. Number one, you can't pay too much for it. It's got to be at the right price. So you've got to be thinking about, you know, we always do what's called residual land value analysis and and that happens in residential, commercial, every single asset class, everyone works backwards from the answer to the question. So the answer is, here's how much profit I need to generate. Here's my capital cost. Here's, you know, you keep backing up and you say, well, now what's left over? That's what I can afford to pay for the land. So you always gotta be working backwards from the answer to the question. And this is no different. We do this in industrial as well. So you gotta make sure that that situation where the numbers work. Number two, you've gotta make sure that there is the right supply, demand dynamics. Got to make sure that the property itself is not contaminated. That can be a liability. If that was once a heavy industry site, then there could be contamination. You want to make sure that that's somebody else's problem, not yours, or if it is your problem, that you can mitigate it where the cost is bounded. So you got to. You know, look at all of these things together. And then, of course, there has to be good connectivity, good access to freeways, to major arterial roads, good access to rail. If you can get a Rails per on the property, even better. But even if you can't, as long as you have good access to major roads. You know, I always look at this through the lens of product design, where you're designing a product for a very specific customer. And so it's really, it starts with the end customers need in mind. And it's not a speculative process. It's really understanding who that customer is designing a product for them and making sure that you're delivering it at the right price. So it's always, always working backwards from the answer   Keith Weinhold  29:43   nowwhen we think about site selection and geography of where we're putting this real estate cities are often located on a body of water, like a bay or a river, often runs through a city, but yet you think of industrial use. Land is not your priciest land, but yet you think of a city center as your priciest land. Oftentimes, where do you put the industrial real estate with regard to the city center? I usually think of it as far outside of that. But are there other trade offs or nuances there?   Victor Menasce  31:11   it can be. You know, it's a question of whether you're doing a greenfield project or an infill project. If the land was previously zoned industrial and you're now just redeveloping it, that can make a lot of sense. If it is a greenfield project where you're looking to build new then, yeah, it's probably going to be in the outskirts, because that's where you're going to get the best land cost. And then, of course, you got to be thinking about what the end product is, and it what's it going to cost you to get it where it needs to be. Most of these projects are built slab on grade, which means that the surface has to be suitable for that sort of building. The land might be cheap, but if you've got to bring in half a million yards of gravel to get the site where it needs to be, it might not look cheap anymore, because you could import so much material. So you have to think of the cost of the land in a shovel ready context, because you can spend an awful lot of money moving dirt, moving gravel, things like that that will be necessary for an industrial project. So when we look at land for that product, we're always looking at it through the lens of, is it in a floodplain? Is it high enough ground? Is it drain? Well, all of those things that come into the cost of preparing the site to accept that kind of a building.   Keith Weinhold  32:23    Now, when we think about what goes on in an industrial space in your mind's eye, you might think of an asphalt plant, or you might think of the noise in some rumbling concrete trucks. With regard to that, what are your thoughts about nimbyism? Do you see much, not in my backyardism among communities with industrial real estate.    Victor Menasce  32:44   Oh, absolutely, without a doubt. And oftentimes that's one of the reasons why industrial land often gets pushed out away from those residential zones. So once you're outside the radius of people who can object, then there's no objection. So that's one way to solve it, and often a good way to solve it, by the way, but you also have to be mindful the fact that if there is potential contaminants coming off of that site, you don't want to be near a body of water that can carry it down into an aquifer and so on. So you've got to be thinking through containment issues. You've got to be thinking through noise propagation issues. There's been, in fact, a lot of issues with data centers, where the air handling and the the air conditioning systems right generate a lot of noise, and that noise often carries over very large distances. And you know, we're talking noise levels that would be very offensive to most homeowners. Some people have had to move because the noise levels have just been so continuous.    Keith Weinhold  33:42   I like the way you put that Victor. It's sort of like, yes, industrial parks are built outside the radius of the loudest objectors. That's right where they're going to go. But that's really the way that it is sometimes when we think about more contemporary uses for how we use industrial real estate today. You touched on data centers, also Bitcoin miners, you know, these are some of the things that generate noise. So what are some of the considerations with those two?   Victor Menasce  34:06    If you're looking at a data center, they consume a lot of power and they generate a lot of heat. The most efficient way to get rid of heat is with water. And that sounds a little bit strange, but you think about it this way, if you heat a molecule of water by one degree. I'm going to actually give you the textbook definition of a calorie. You take that water and you heat it by one degree, that'll consume one calorie of water. That's the definition of a calorie. And if you take it from the liquid state to the vapor state, just that phase change at 212 degrees Fahrenheit, or 100 degrees centigrade, that phase change is going to consume 500 calories. So you're getting rid of tremendous amount of heat by evaporating water, and that's why data centers consume so much water, is because they evaporate the water. That's the way they get rid of the heat. They evaporate it into the atmosphere. And that's how they get rid of the heat. It's the most efficient way to do it, but it consumes a lot of water resources. And then, of course, you've got to have the power to get into the data center, and a lot of places don't have the electric infrastructure to provide what's needed on a sustained basis. So you need not just good power, you need good power redundancy. So if there's a power failure here, you've got maybe redundant paths. So if one transmission line goes down, you've got alternate paths to keep the data center running. And you need the same thing also with communication, so multiple redundant fiber pathways in and out of the data center. So all of these things come into site selection. And then if you got all of that right, you got to overcome the neighborhood objections.    Keith Weinhold  35:45   Yes, that's right. We're doing a little science here with Victor Menasce, experienced international developer, and Victor when we think about industrial real estate, and we're here on an investing show. You know, maybe an investor sees potential in data center real estate or something like that. So for the individual investor, what can they do? Can they do anything individually? Are there funds to invest in, to either avoid or be attracted, to tell us about how the investor can get in?    Victor Menasce  36:15   We're not active in data centers. We're active more on the industrial side. I know the existence of data center funds. I know, for example, Kevin O'Leary, very famous Shark Tank, is a major investor in data centers. If you look him up, there might be some potentials there. Many of the major players in artificial intelligence, Oracle right now is taking on a boatload of debt to build data centers for open AI, so they're going to both build and operate those data centers. And I don't know where they're getting their capital, but they're getting a lot of it, or at least that's what's been announced publicly. Data centers require a lot of at least at that scale, require tremendous amount of infrastructure. We're talking hundreds of acres. We're not talking a small warehouse here that might be a million square feet. We're talking big, big acreage for those scale projects and for more localized projects. Yeah, there are smaller data centers, but they're not that economical to run. So it's usually the large ones that are the most cost efficient.   Keith Weinhold  37:16   Well, two things Victor is there anything else about industrial real estate? Our listeners should know maybe something I did not think about asking you and then tell our audience how they can learn more about what you're doing.    Victor Menasce  37:27   We see opportunity in particular. We think of it almost like a covered land play. We're very active in the industrial outdoor storage space where there is need for things to be stored outdoors. It might be landscaping companies that want to buy materials by the truckload. It might be car dealerships that have an excess of inventory. It might be boat and RV storage. There's many different uses for secured outdoor storage, and these are products that are designed very specifically for customers that have those needs. And as a covered land play, frankly, some of the best returns that are available in the marketplace. We've looked at a number of different things, and this is where we're placing majority of our energy right now as a development company is in that space, because we see it as an underserved segment of the market where there is not a lot of institutional money that's come into the play yet, so we're very active in that space.    Keith Weinhold  38:22   And how can our audience learn more about what you're doing   Victor Menasce  38:25   best is to reach out to us at y Street, capital com. Be happy to have if folks want to learn more about our projects. There's a place where they can sign up on the website to get more information. And love to have you as guests or as listeners to the real estate espresso podcast, and that's a daily show, seven days a week, so love to have you as a listener for that show as well.    Keith Weinhold  38:46   And that's the letter Y, Y Street, capital.com,Victor Mesance, it's been enlightening as always. Thanks so much for coming back onto the show.    Victor Menasce  38:55   Thank you so much.   Keith Weinhold  39:02   Oh yeah, good stuff from Victor as always. Another thing that he, I and his wife did in Anchorage when he was here recently is visit, well, it was not an AI data center, but we went to a mint that sells gold bars, nuggets and bullion. I really just looked. It was fun to look with Victor and actually pick up and hold gold nuggets, something that you cannot do online. I didn't have any intent to buy anything with the run up in precious metals prices. I made my last purchase of those in the middle of last year. So a year and four months ago today, I hear about lots of people rushing to buy precious metals. Now, amidst this big price run up and the run up might still have a ways to go, but no, the time to buy was like a year and a half ago or more. It's not now getting caught up in the euphoria this sort of exhaltation where you're paying double the price.   Keith Weinhold  40:03   next week here on the show, I've got more that I want to share with you on today's opportunity in new build rental property. How real estate pays five ways in a slow market, which is just fascinating. And I've got a GRE live event to tell you about next week as well, and more, lots of intriguing wealth building material here in future weeks, and then sometime after that, my own right hand assistant here at GRE is going to come out of the show and ask me some of your listener questions. It's the first time you'll hear her voice on the show. But more importantly, get my answers to your investing questions. If you'd like your question answered on a listener questions episode down the road, as always, you can write into us at get rich education.com/contact, that's get rich education.com/contact, until next week, I'm your HOST. Keith Weinhold, don't quit your Daydream.   Unknown Speaker  41:02   Nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of get rich Education LLC, exclusively,   Keith Weinhold  41:30   The preceding program was brought to you by your home for wealth. Building, get richeducation.com  

Keith sits down with Terry Kerr and Matthew Vanhorn, the leaders of America's oldest turnkey real estate provider, Mid South Home Buyers, to unpack the practical systems that keep thousands of rental units profitable and tenants happy. With national renter mobility dropping, longer stays are now the norm. Average resident stay is 4 years—double the industry average, thanks to proactive maintenance and relationship-driven management. Instead of fighting for eyeballs on Zillow, they target HR departments at hospitals, universities, and major employers, tapping into pre-screened, income-verified tenants with stable paychecks and predictable work schedules. Invest where returns still make sense. Visit midsouthhomebuyers.com to book your investor tour and get $500 off your first property. Resources: Switch to listening to the podcast on the Apple Podcasts or Spotify app, as the dedicated GRE mobile app will be discontinued at the end of the month. Show Notes: GetRichEducation.com/576 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com GRE Free Investment Coaching: GREinvestmentcoach.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  For predictable 10-12% quarterly returns, visit FreedomFamilyInvestments.com/GRE or text  1-937-795-8989 to speak with a freedom coach 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: Keith Weinhold  0:01   welcome to GRE I'm your host. Keith Weinhold, learn about how to cut your rental property vacancies and keep tenants twice as long. Why Memphis, Tennessee stays the cash flow King, and exactly where to find really low cost, quality properties today. That make sense from day one today on, get rich education.   Keith Weinhold  0:26   You know, most people think they're playing it safe with their liquid money, but they're actually losing savings accounts and bonds don't keep up when true inflation eats six or 7% of your wealth. Every single year, I invest my liquidity with FFI freedom family investments in their flagship program. Why fixed 10 to 12% returns have been predictable and paid quarterly. There is real world security backed by needs based real estate like affordable housing, Senior Living and health care. Ask about the freedom flagship program. When you speak to a freedom coach there, and that's just one part of their family of products, they've got workshops, webinars and seminars designed to educate you before you invest. Start with as little as 25k and finally, get your money working as hard as you do. Get started at Freedom family investments.com/gre, or send a text now it's 1-937-795-8989, yep, text their freedom coach, directly. Again, 1-937-795-8989,   Corey Coates  1:39   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  1:49   Welcome to GRE from New York's Long Island Sound to Washington's Puget Sound and across 188 nations worldwide. I'm Keith Weinhold, and you're listening to get rich education. There's an economic trend that you need to be aware of. We're going to talk about how you can play it in this era, sources ranging from Redfin to Housing Wire and others, you know they're all in agreement that the transiency rate, that mobility rate for Americans, is down. And what that means is, when people find a place to live, whether they're a property owner or a renter, they are staying put longer. They put this big, heavy anchor down, and that kind of goes along with employment. Although the unemployment rate is low right now, there aren't very many people moving jobs or changing jobs. So the rate of hiring is low, that's bad, but the rate of employer firings is low, that's good. So on balance, Americans are keeping their job if they've already got one, and they're keeping their home if they've already got one. But because movement has slowed, as we are in this slower housing market, I'll drastically oversimplify here. All right, a few years ago, you might have had a tenant stay for two years, and then there would be a one month vacancy between tenancies today, double both of those. You're more likely to see a four year stay, but two months between vacancies. So your occupancy rate, therefore, is the same in both scenarios, but there's less movement. Again, oversimplifying, but you can see the effect a longer vacancy period is bad, a longer tenant retention period is good, all right. Well, how do you increase your tenant's length of stay and decrease that vacancy in order to be more profitable as an investor and yet give your tenant a satisfactory experience too well. One thing that you can do is list your vacant unit with an employer. Yeah, advertise it through a local stable company. You're going to end up with higher quality tenants. See, there's already this built in screening that was done for you. The employer basically did that for you. So when you work directly with especially hospitals, universities, corporate campuses or military bases, what you're doing is you're fishing from a pond of already vetted, income verified and drug screened candidates. See these tenants what they had to do. They already had to pass HR background checks and employment verification in order to get their job. So for you, that saves you both risk and time compared to the you know, the Craigslist style roll the dice crowd. Now, Of course, we cannot discriminate against certain groups of people, and we'll get into that shortly. But of course, steady employment equals steady rent tenants sourced through employers. They usually have reliable paychecks, often through direct deposit. They've got predictable work schedules, and there's going to be less income volatility. So that means that you'll have fewer late payments and lower eviction risk. And some landlords, you know what they do, they even structure rent payments through payroll deduction. I mean that essentially automates the rent collection. Yes, you can do that. Employees who move for a job, they often sign longer leases, because relocating again would be a hassle. So many will stay in your unit as long as they stay employed. That could be two years or five years, especially in the health care, education and tech sector. So less turnover means fewer make ready costs for you, fewer showings and just more ease and peace of mind. So advertising through employers that is a really low competition marketing channel as well. You know, most landlords, they blast their listings on Zillow apartments.com or maybe Facebook marketplace. Well over there, your post is just one out of hundreds, instead of all that competition, what you're doing is you're finding quiet, uncrowded channels when you utilize these employer housing boards and their HR relocation departments, and this way you can even get inside that company's internal newsletters so you're reaching renters before they can even start scrolling listings over on Zillow and see employers love this too. It's not like the employer is having to do a favor for you. They love it, because when they can help new hires or transferees find housing, it's better for that company. It reduces the employee's stress. It improves the retention at that company. If they have an employer that's satisfied and has a good place to stay, and it really boosts that company's recruiting success. So you're helping yourself, you're helping that company, and you're helping their new employee, which is your tenant. So this makes HR departments. They are surprisingly receptive to you. They might even circulate your listing internally or add you to their housing resource list. So this is a perfect fit for these hands off turnkey investors. So if you're doing that or you're managing properties remotely, this employer outreach, it really gives you a nice extra layer of reliability. And as far as the people that will be your tenants, think about nurses, engineers. IT staff, sometimes teachers, sometimes military based personnel. I mean, they are all ideal long term tenants. Now the way that you can actually do this and put it into practice is identify major employers that are near your property, that could be hospital systems, that could be universities or manufacturing plants, then contact their HR or the relocation department, and after that, it's not hard just provide them with a concise PDF or a one page flyer with your property photos and the monthly rent amount. And one thing you can do, and you should in this case, is put the distance or the time it takes to travel to the employer from your rental unit, and then add your contact info. That is exactly how you do it. You can offer a small incentive, like $50 off the first month for employees. So this is a slick way to advertise your vacancy with employers and make you more profitable over time.    Keith Weinhold  7:02   Now today, we're going to talk to who is actually America's oldest turnkey real estate company. As far as we know, they're based in Memphis, Tennessee, and we'll learn how they advertise a vacant unit and screen prospective tenants and place them and maintain their units over time. They are called mid south homebuyers. You've heard them on the show before, and because of their success, both investors and other real estate companies, they actually listen in intently to what these people have to say. I mean, others study them and learn from them. These are the people other companies study, and you're still going to hear from their principal and their sales lead about reducing your vacancy time and increasing your tenant duration. And, you know, it's just kind of funny how often Memphis, Tennessee, which is where they're based, how often this comes up in cash flowing real estate conversations that you have out there over time? I mean. And Memphis consistently has the best cash flow, maybe, amongst any substantial Metro in the nation. We'll just say among metros that are big enough to have a major pro sports team. I mean, Memphis does have the NBA Grizzlies. There aren't many other cities that can even compete with Memphis as the cashflow King, although there are some that you can work into the conversation. Indianapolis, Cleveland and Oklahoma City are some of those places. Now, before we're done, you'll also learn about how, even following this generation's big inflationary wave, how purchase prices are still as affordable as they are in both Memphis and Little Rock. I mean, this is going to make you ask out loud today, how could they still be so low? We'll also talk about conventional, enduring property management techniques today, now next month here on the show, we're going to talk about how you can use AI to self manage your properties, and that show next month is going to be with an expert straight from Silicon Valley. We're going to talk to the CEO of hemlane then and their AI driven property management software. She used to work for Apple, and she's got a Harvard Business School degree. That is next month today. It's about tried and proven techniques to make you more profitable as an investor   Keith Weinhold  11:24   I'd like to welcome in longtime friends of the show, with the emphasis on long time since they were first here with us, nearly 11 years ago, They are those ever steady property providers based in Memphis, mid south homebuyers. They also serve Little Rock, Arkansas. I have physically walked their offices and properties in person myself. They are, in fact, America's oldest turnkey real estate provider. And it's the return of their founder and principal, Terry Kerr and a second guest who you'll meet shortly, Terry, welcome back on of the show.   Terry Kerr  12:04   Thanks so much, Keith, so glad to be back.   Keith Weinhold  12:07   Congrats on your success. Your model and operation is prominent and exemplary nationally. You've now grown to 110 w2 employees there, and your 13 plus year property management guru who's been leading that entire division is now your sales director. It's terrific to introduce him to the world today. Matthew Van Horn,   Matthew Vanhorn  12:31   Keith, so great to be on here. Long time listener of the show. Really great to meet you.    Keith Weinhold  12:36   Yeah. Appreciate it now you'll soon be listening to yourself on the show. GRE, listeners are familiar with the turnkey real estate model. What you do is buy a distressed property, you rehab it, and then you place a tenant in the property, and you hold on to that for investors across the nation for the production of long term cash flow. Well, let's get an update between Memphis and Little Rock. How many properties do you hold under management for investors now and then? What percent are single family rentals versus other types?   Terry Kerr  13:07   Right now, we're about 57 maybe a little closer to 5800 and the vast majority of them are single family houses. I'm going to say probably. What 5% are duplexes? Matthew, something like that. Yeah, something like that. So no other multis, just single family, most of them rehabs. And of course, now we're doing a new construction direct to rental as well.   Keith Weinhold  13:29   Interestingly, with 58 to 5900 rentals, I mean, you can easily sort of be your own surveying outfit in an informal way, in finding out what's happening with the market, what all the dynamics are. So why don't we start at the beginning, when you're marketing and advertising and looking to place a tenant, tell us about just what you look for, just what you need to avoid. I mean checking for the tenant. That typically involves an employment check, a credit check, a rental history. Sometimes something might appear like a red flag, say, a 590 credit score. Would you always accept tenants in that condition? Because there are times when there are extenuating circumstances when a tenant with a 590 credit score actually might be a good placement. So tell us more about that screening.   Terry Kerr  14:17   As you know, it is renters that drive our returns as investors, and so selecting the right renter is where the money is made in this business, for sure, we are doing as much screening as we can for our renters. There's a lot that goes into that. We actually have a whole processing department. You know some people here who spend their whole day working in the processing division. And what you really got to watch out for, as far as red flags, is just fraud. There are so many ways you can use machines to defraud, and we have people who are able to detect and weed out the bad actors there, but we know what works really well. We have, for instance, in. Arkansas, the main employer of our residents is Baptist Health Medical Center, and we love our healthcare workers there. So that's a place that, you know, starting from the marketing side, we're going to dial up our marketing in those places we're going to go to the HR department, or we're often in the HR department of Baptist Health Medical Center, pushing and asking for referrals from them, you know. And same with just referrals in general, good tenants tend to refer other good tenants. We're of course, looking for strong income that we can verify. And more than anything, we're looking for strong, credible current rental history, so someone who's paying the rent today somewhere to a verified landlord, not their sister, you know, but a very verified landlord. That's the big thing, Keith.   Keith Weinhold  15:50   Tell us more about that. That's great that you're being proactive and getting right in there with a stable, steady employer. That is where our rent comes from. After all, are there any other red flags, maybe things that people would not think about identifying as a red flag when it comes to that employment, in that credit, in that rental history   Matthew Vanhorn  16:11   one reason I bring up the localized marketing that some people may not think about is that renters who move from Out of state often will land in a place and then stay there for one year, which is fine, but then they often don't renew their lease and they'll move somewhere else. Now, of course, what we have to do above all is we have to be legal, you know, so we can't discriminate against someone from coming from out of town, but what we can do is dial up our localized marketing so that we're getting people who are in the neighborhood, who love the neighborhood already where they are, and so that contributes to longer residence days, and it's just little things like that. Once again, you're looking for employment that you can verify, so that you know that you're getting a quality renter.   Terry Kerr  16:59   I'll also say that one of the ways that we try to attract the most potential residents we can is by having a free application. So typically, a property management company is going to charge, you know, 50 to 75 bucks per applicant. And we're very fortunate that we've get a terrific deal from Equifax, because we're also lenders, we do some lending to our investors, which gives us a really good deal on paying for credit checks. And so we waive those fees for our residents. And so a lot more folks are going to apply with us, because it doesn't cost them anything to apply. And of course, the more people that apply, you've got a much better shot at a filling the property quicker, but also finding a much better resident.   Keith Weinhold  17:44   well this is a great part of building the connection. One of the first interactions they have with you is realizing that you don't have any application fee. And AI can be great for marketing and for doing things like writing listing descriptions, but you build that human connection there. For example, you do in person showings. You invite prospective tenants in current tenants into your physical office, kind of replacing society's trust crisis with humanity.   Matthew Vanhorn  18:14   Yes, that's right, Keith. In the last 12 months, we've spent more money than ever on technology, so we are leaning heavily into creating the systems and processes that allow us to get to our service quickly. And at the same time, we've invested more into staffing up in the past 12 months, into inviting people into our office, you know, and we can still do everything remotely. We can do it virtually for folks who want that, we found that a lot of residents love to look us in the face, and they like to come down to our office, and they like to sit across from Karen and across from Gabby, and they just love the personalized experience that we give them. It's hard to quantify it, Keith, but I just really believe that it drives longevity, right?   Keith Weinhold  19:04   Having a face behind that rental because your properties are freshly rehabbed, or, in some cases, they're new builds, so hopefully you won't have too many tenant service calls once they do become a resident, and you don't need to interact with them all the time, though you're there for them, but once you have chosen a tenant, and that tenant is placed, you know somebody has to be the adult in the lease, and we sincerely hope that the tenant is one of them. So with regard to that, how do you help ensure that tenants keep making on time payments, and you can keep tenants and not get ones that break the lease. So can you speak to us about that, how you can help identify that in the screening and then that ongoing relationship?   Matthew Vanhorn  19:47    I will say that perfect vetting does not necessarily lead to perfect collections, because it turns out that every one of our residents, they are humans, and as humans, we run into things you. Know, divorce can happen. Relationship breakups can happen, job losses happen. Just very human things happen. And so we like to stay in touch with our residents as often as possible, and very much encourage an open line of communication. We very much believe in compassion based collections here at Mid South. And so when residents fall upon hard times, we are truly there for them. Memphis actually has more nonprofits per capita than any place in America then. So when residents do fall on hard times, you know, and it happens, we're actually able to reach out. We have connections with several agencies that can help with rental assistance for renters who need it, we found that by pouring into our staffing with the resident support and solutions department that we've had a lot of success in collecting just by keeping that relationship intact when the pandemic hit. For instance, and I know that's been a few years from now, and maybe we all want to forget it, our collections rate actually went up during that time, and I attribute that largely to the fact that, number one, we had a relationship in place with our renters. We staffed up, and matter of fact, we had a full time person just working to get rent assistance for those renters who kind of had been disenfranchised by the pandemic   Keith Weinhold  21:26   during pandemic times or post pandemic times whenever it is us as investors, we're always interested in reducing that vacancy time. We seem to be in a period, at least nationally, where when people get a hold of a place, they want to keep it and hold on to it. In a lot of markets, the duration of a tenancy has been increasing. So despite what era that we're in, can you talk to us about some of the best practices for how you reduce the vacancy time? Because we all know vacancy and turnover is our biggest expense over time. As investors,    Terry Kerr  21:58   I like to say, you know, at the heart of what we do is making sure that when a hard working, single mother comes home at the end of the day, she can give her child a hot bath. And that's not possible if the water heaters out. And that's just one example, but our main job is to give a good quality of life to the residents that we are caring for, and if we can do that, and if we can treat them with respect when they do fall on hard times, like Matthew said, they're going to want to renew the lease. So we have got a almost twice the average length of stay as the industry average, which is we've got about a four year average resident stay. And when folks move out of a mid south house, it's not because they can find a better value they're going to get. They're already in the nicest house on the street. And if something breaks, we're out there lickety split to fix it. When folks move out of a mid south house. It's either because they're downsizing. Kids are moving out, or they're going up because they're having their family increases and they've got to move up, or maybe something happens to them, like Matthew mentioned, you know, death, divorce, disability, these things happen, right? But no one's moving out because they can find a better value or because they're not getting the service or respect that they deserve.    Keith Weinhold  23:25   That says a lot. Being managers of 5800 to 5900 properties, which gives you this sort of canvassing or de facto surveying ability that you have. What are we seeing for the direction of rents? We'll get into rents and prices later, because nationally, rents are just holding steady. They're really not rising very much. What do you see there?   Matthew Vanhorn  23:49   Yes, we saw them fairly stable. Over the course of 2024 I have started to see an uptick here in the past few months, I will say, which is encouraging for investors, for sure, each month, I'm looking at all of the renewal rates personally, to kind of look at that, engage the market. And like you said, it really is helpful. I mean, yes, we have all the tools, Zillow, rentometer, all these things, but there's nothing like just our own data of seeing, hey, what's the house across the street renting for? You know, how long did it take for that to rent and incorporating that into our data. And right now, our houses are moving at a faster pace on the leasing tip, which rent increases tend to follow that    Keith Weinhold  24:30   when it comes to optimizing rents, a lot of that coming back to reducing vacancy time. There are a number of strategies that one can employ now it's not with you guys, but I have a single family rental home in another market, and one promotion that that manager is running and encouraged me to participate in is a 50 inch flat screen TV having that and giving it away to the tenant. Somehow, that only costs $250 so I decided to do that. At for a vacancy that I have there in that market. Now, some investors might say, you know, why am I buying TVs for a tenant? I'm already providing them with a place. If the rent is 1500 bucks, a $250 TV only costs five days of vacancy, and that helps me reduce that vacancy period. Might even make a tenant want to stay longer, so sometimes you got to be thinking about how your tenant thinks, and you can come up with inventive ways to reduce vacancy. Do you have anything like that, any small concession that you've offered or have needed to offer in either market?   Terry Kerr  25:33   Well, we haven't done anything like that, Keith, but what we do like to do, and Matthew mentioned this earlier, is as great tenants tend to refer other great residents, and so we have a referral bonus that we pay out to our residents that refer other folks to us, and that does not come out of the pocket of our investors, that comes out of our pocket, because it's our job to make sure that We rent these properties as quick as we can to qualified residents.   Keith Weinhold  26:04   One thing that I've liked about Memphis, which few markets have, is that it's embedded within renter culture in Memphis, since it is such a renter city, that renters travel with their appliances, like the refrigerator, in their stove, in their dishwasher, which always seems crazy to me, so you're not providing those appliances. It seems like that fact alone might help with resident retention in Memphis. They're just less likely to move when they have more stuff to move.   Matthew Vanhorn  26:35   Yeah, it's really true. Yeah. And the longer people stay, the longer they tend to stay as funny as that sounds. And yeah, that's something that we found even in our new construction homes where we do provide the appliances we've been finding in many instances, still the residents are coming with their own appliances. And so we're storing our appliance, our brand new appliances, in our warehouse.   Keith Weinhold  26:58   Wow, yes, that's just something that you don't see in other places. And when it comes to retention, we're interested in maintaining the property like you talked about being proactive with are there some other things you do to help ensure that the maintenance expenses stay lower throughout the lifetime of that investor ownership? How do you approach that?   Terry Kerr  27:16   It really starts with doing a full blown rehab, right? So every once in a while, you know, we'll have houses that, you know, have some age on the components. But when we do a rehab, everything is brand spanking new, like a new roof, gut, the kitchen, got the bathroom, you know, all new electrical, all new plumbing, all new HVAC, a new water heater the whole nine yards. So it starts there, and then when a property turns over, we go into the property, and we are looking for safe and clean, right? So we want to make sure to keep the water out. We want to make sure that everything is safe and the property is tip top and super clean. Fortunately, the folks that are maintaining the houses for our investors. The technicians are the same technicians that did the renovations on the property, right? And it's the same materials. Yeah, it's like, we have an assembly line and a junky house jumps on the assembly line, and we rip everything off, and all the same materials jump back on the house. So we're able to keep costs low because of that, and also because the labor that we end up having to pay the technicians typically is a lot less than normal, because they're used to working on the same water heater, the same HVAC system, you know, the same furnace, the same dishwasher. So our volume model kind of helps with that.   Keith Weinhold  28:39   Oh, if you were listening closely, yes, what a huge efficiency that can be. You fellas, have any last thoughts about efficient property management, since that's what you've led for more than 13 years, Matthew,   Matthew Vanhorn  28:51   I resonate with what you said about how many investors overlook vacancy costs when properties turn over. And so I think it's just getting your rents right on the money, maybe just a little below, can actually drive returns, as opposed to maybe trying to get an extra 25 bucks more, which takes you three weeks longer to rent. You actually did not come out ahead in that, in that scenario, Keith   Keith Weinhold  29:14   today, with inflation, a $25 difference, I mean, we're down to what 12 hours of vacancy is, really how we're talking about there Property Management turning a passive income into an active lifestyle since forever. That's what they do. Property managers are the people that have never met a maintenance issue that waited until business hours. So that's why I'm grateful that my managers do what they do for me. That's what we're talking about today. More when we come back with Terry Kerr and Matthew Van Horn of mid south homebuyers, I'm your host. Keith Weinhold   Keith Weinhold  29:45   if you're scrolling for quality real estate and finance info today, yeah, it can be a mess. You hit paywalls, pop ups, push alerts, Cookie banners. It's like the internet is playing defense against you. Not so fun. That's why. It matters to get clean, free content that actually adds no hype value to your life. This is the golden age of quality email newsletters, and I write every word of ours myself. It's got a dash of humor. It's direct, and it gets to the point because even the word abbreviation is too long, my letter takes less than three minutes to read, and it leaves you feeling sharp and in the know about real estate investing, this is paradigm shifting material, and when you start the letter, you'll also get my one hour fast real estate video course, completely free as well. It's called The Don't quit your Daydream letter. It wires your mind for wealth, and it couldn't be simpler to get visit gre letter.com while it's fresh in your head, take a moment to do it now at gre letter.com Visit gre letter.com    Keith Weinhold  30:56   the same place where I get my own mortgage loans is where you can get yours. Ridge lending group and MLS, 42056, they provided our listeners with more loans than anyone because they specialize in income properties. They help you build a long term plan for growing your real estate empire with leverage. Start your pre qual and even chat with President chailey Ridge personally, while it's on your mind, start at Ridge lending group.com that's Ridge lending group.com   Tom Wheelwright  31:31   this is Rich Dad Advisor Tom wheelwright. Listen to get rich education with Keith Weinhold, and don't quit your Daydream.   Keith Weinhold  31:37   welcome back to get rich education. You've got the pleasure of listening to the voices of America's oldest turnkey real estate provider mid south homebuyers based in Memphis, Tennessee, and some years ago, they branched out to Little Rock, Arkansas as well, just about a two hour road trip west of Memphis. When us as investors buy a property, we've got to be cognizant of the fact that that property swims in an economic ocean, and therefore job vibrancy is, after all, how the tenant pays the rent. So tell us about economic developments in Memphis and Little Rock, because there are some exciting ones.   Matthew Vanhorn  32:24   So yeah, both in Memphis and in Little Rock, we've got the roads, we've got the rivers, we've got the rails, which drives both Memphis and Little Rock as distribution hubs here in the middle of America. And so of course, FedEx famously has their headquarters here in Memphis. Many of your listeners will know it's the largest cargo airport in America. We've had a resurgence of X. AI has actually come to Memphis and built the world's largest supercomputer here in Memphis, and they're actually working hard now on building a second called Colossus two, which is going to be even larger. They're saying it may hold as many as 1 million Nvidia chips, which I can't do that math, but that's a lot of money. And so x AI is has quickly become the second largest taxpayer here in Memphis and in Shelby County. And 25% of those tax proceeds, by the way are going, they're earmarked to go right into that local community beside where the plant is, and all the development is in Little Rock. You know, of course, it's Arkansas's largest city. It's the capital city, and so by nature of that, there are many stable state government jobs there that is a bulwark of the economic development there. There is a actually Fintech startup space is big in Little Rock as well. Lockheed Martin has been doing developments there, so a lot of aerospace development around Little Rock. Folks who look at our homes will also notice that we are in Jacksonville, which is a suburb of Little Rock that's anchored by the Air Force base there in Jacksonville. And there's actually a large munitions supplier there, Sig Sauer, which provides a lot of jobs to the locals there. And our number one, I may have mentioned it earlier, our number one employer in Central Arkansas is actually Baptist Health Medical Center. And just generally speaking, health care workers make up the largest portion of our residents in Central Arkansas. So a lot of great economic drivers that we're seeing bringing renters to Little Rock and and new jobs there. As a matter of fact, not just that, but I noted recently that the cost of living in Little Rock is now 10% below the national average. I think we had a report on our website a few years ago that it was 6% and that's actually. It's only becoming more favorable to live in Central Arkansas.   Keith Weinhold  35:04   You're talking about stable and growing drivers here, AI related businesses and healthcare. Let's talk about those rents and prices. Because really, this is one reason why national investors are so drawn to that area. It's that high affordability and that high ratio of rent income to purchase price. So what sort of rent and price ranges are we looking at in both markets now,   Matthew Vanhorn  35:29   it's not the same as it was when I started here in 2012 Reds have increased and so, you know, average rents around here start around 900 and now we're going up to about 1700 toward the high end there. And you know, the great news is that incomes have increased as well, and so our renters are able to afford this just as well as they were before. Or maybe even better, like I mentioned, cost of living in Arkansas has actually improved. And so what that means is people are actually making more money compared to the rent, even though rents have increased, which I believe is good news for investors, and it's been good news for us as a management company, as I think that contributes to the resident longevity there, once again,   Keith Weinhold  36:17   nowhere in the nation Do we hear enough about increased affordability stories, which is exactly what you have when your income rises faster than your rent, which is a harbinger of being able to increase the rent in the future. Tell us more about the rent in price ranges in both markets.   Matthew Vanhorn  36:35   In Memphis, if you get a two bed, one bath, you can often find that for as low as 808 850, something like that. As you step up into a three bed one bath, that's going to be somewhere between 1000 1200, depending on where you are in the city, there in Memphis, if you're in our new construction homes, those can range between 1395 all the way up to 1850 once again, depending on the size of the construction and the location out in Arkansas, rents tend to be just a little bit higher than in Memphis. So you see the rent starting there around 950 and going up to just under 2000   Keith Weinhold  37:19   and we're interested in that capital price, because a lot of times, investors think about their purchase through that perspective of the ratio of the rent income to the purchase price.   Matthew Vanhorn  37:30   As far as sales price goes, Keith, we started right around $100,000 on the low end, and those can range up to 240,000 thereabouts, on the high end, if you're talking about a new construction, three, two with a two car garage in an appreciating area. You can see that sort of range in Memphis, very similar, very similar. We have some of our smaller rehabs starting as low as 100,000 and going up to about that $215,000 range.   Keith Weinhold  38:04   Now, I would imagine, in the inflationary era that we're still in, that you get investors that call in there, and you do have these robust interactions with investors, where you talk with them on the phone like a human being, and people that say, come on. How can you get a respectable tenant in a single family rehab rental home that only costs $120,000 How do you handle questions like that?   Matthew Vanhorn  38:30   That's the whole job here is explaining that Sure, no where our renters are living. It's the best home that they've ever lived in, and it's it's in a affordable area. It's in an area where their friends live, where you just have workforce, just blue collar, but beautiful neighborhoods where they live. And I mean, they're proud to call these houses their home, and for many, it really is their dream home.   Keith Weinhold  38:55   People mold their lawns. The streets aren't littered with trash. I know where you guys invest. I've been on the streets there with you, checking them out. What percentage of investors finance the property, and how has that changed over time?   Terry Kerr  39:09   I'm going to say that it's probably about 75% finance, 25% cash. A lot of your listeners come with their own mortgage broker. The ones that don't, we have our tried and true mortgage brokers. Interest rates are not 4% anymore, and some folks are are wanting to pay cash, and they do, and some of them will pay cash, and then, you know, plan on refinancing later. But right now, that's probably about 25% cash, 75% finance.    Keith Weinhold  39:36   Yeah, it's interesting to see that direction, since rates did begin to get higher in 2022 you have this robust interaction with investors, but that doesn't only have to be over the phone. You guys are so proud of what you do that you've long offered investor tours. In fact, now you're doing more of those investor tours than you ever have. I believe you're doing 11. In tours per year in Memphis, and five in Little Rock as well.So tell us about that.    Terry Kerr  40:04   I guess it was maybe seven or eight years ago. We're so stoked that everybody wants to buy houses from us, and we've got, you know, a short wait list, and that's awesome, but we want folks to come visit us, and so, you know, we just started offering folks $500 off of the purchase of their first home, if they'll just come visit us. And so we know it's in our best interest to try to get to know our investors on a personal level, and the investors that do come to visit us, and we're able to pull back the curtain and show them, you know how operational efficiency benefits them as investors. I think they appreciate it, and then we do also just kind of like the nerd out on the nuts and bolts of the business. So it's fun to be able to pull that curtain back.   Keith Weinhold  40:48   Now, you don't have to be an investor to come on the tour, either prospective investors or regular investors that are already there can come on the tour. Is the Tour Free? Absolutely. So the tour is free, and you get a $500 credit if you end up purchasing there. Most investors never come physically see the property at all, but you sure can do that, and they make it really easy for you. Well, this is going to help a lot of people, especially when we think about how to manage the tenant and reduce our vacancy time in today's era. Before I ask how our listeners can learn more about you. Do you have any last thoughts at all about anything that we discussed management or properties or tenants or anything else? Maybe I did not think about asking you.   Matthew Vanhorn  41:32   I'll just go back to Keith talking about how well staffed we are here at Mid South. I think that's where we stand. Apart from a lot of our competitors is that we're not just two or three guys in an office here, we have over 100 employees. It takes speed to deliver good service. Service leads to satisfaction. Satisfaction leads to the residents staying. The resident staying leads to stacks of cash for you as investors, and the only way you can do that is if you're staffed up properly. And so that's something that you want to ask if you're ever vetting another property manager, is what does your staff look like? And really understand, can they actually provide the service to their residents and to their investors that they're reporting?   Keith Weinhold  42:17   You have helped more of our listeners than any other provider in the nation, certainly over 100 of them, perhaps hundreds by now. I'm not really sure if listeners want to get a hold of you, what's the best way for them to do that?    Terry Kerr  42:31   Invest at mid southhomebuyers.com   Keith Weinhold  42:34   that's a great starting place for you. And that way you can take a look at properties, get thinking about the market. Learn more about their management and get a hold of them. Terry and Matthew, it's been valuable as usual. Thanks so much for coming out of the show.   Matthew Vanhorn  42:49   Thank you, Keith.    Terry Kerr  42:49   Thank you, Keith.   Keith Weinhold  42:56   Oh yeah. Sharp insights from Terry and Matthew at mid south homebuyers today, waiving their application fee means more applicants, a bigger renter pool to choose from, which either shortens your vacancy time or it's going to get you a better quality tenant. Now, a lot of people, they think that real estate is unaffordable and even impossible, but few make it easier and more affordable than these people. And I think I shared with you before that, an 18 year old guy who I do know and have talked to in person, he bought his first ever rental property from mid south homebuyers. So it's kind of interesting. His goal was to own his first rental property when he was 18, and he closed just in time the day before his 19th birthday. I think he's age 20 now, but because fully renovated single family homes can be bought in a range of about 100 to 220k here, and you will put 20 to 25% of a down payment on that your monthly rent is about eight tenths of 1% of that purchase price. Okay, so that's renovated, and then new builds sell in a range of 200 to 260k rent to price ratios on those are a little lower. They're point seven five or so. Now we are here in an era where mortgage rates are in the low sixes for owner occupied that means you'll pay closer to 7% on income properties. But if you go new build, which is really something I've been suggesting to you for a while, if you can swing it, those rates are as low as five and a quarter percent for qualified buyers here, yes, at these low Memphis and Little Rock prices, they've got a few duplexes usually available as well, renting your residence. It's just something that's sort of in the culture there in Memphis, and that's why they're confident in offering a number of guarantees for investors. They just do things that. That other providers don't do in the rare event that your property is occupied and then it somehow falls vacant during your first year of ownership. Their releasing fee is free. They also have a guarantee that you will cash flow after you close. They have a one year bumper to bumper warranty on the renovations we're talking about from the doorknob to the ductwork, and there's a lifetime 90 day occupancy guarantee. What that means is, if your property were ever vacant for that long, they would start paying rent to you on day 91 but you know what's amazing? It's easy for them to offer that they'll tell you that they've never had to pay out on that, because they've never experienced the vacancy of more than 55 days. Just amazing. And all those guarantees I just told you about that is in writing on their website. So if you want to get a hold of them, there's virtually no one else in the nation that makes it easier and more affordable. I believe that's an email address that Terry gave there. Again, it is invest@midsouthhomebuyers.com their website is, as you might have guessed, midsouthhomebuyers.com that's midsouthhomebuyers.com interestingly, you can even look at their income properties. There some provider websites don't let you do that. And again, they offer free tours, and if you prefer, their phone number is 901-306-9009, this week, you learned some great techniques for reducing your vacancy and being more profitable, as well as a provider that can deliver it for you. Should you so choose? The proverb goes, give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime. Well, you've got the option of doing either one or both today, until next week. I'm your host. Keith Weinhold, don't quit your Daydream.   Speaker 1  46:59   Nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of get rich Education LLC, exclusively you   Keith Weinhold  47:27   The preceding program was brought to you by your home for wealth building, get richeducation.com  

Keith discusses the rising cost of the American dream, now estimated at $5 million, due to inflation and housing prices.  He highlights the affordable housing crisis, with more Americans living in RVs and homelessness up 18% since last year.  The NAR's "Best Week" report highlights the benefits of buying during this time, including lower prices and more favorable terms. Resources: IMPORTANT: GRE mobile app listeners - Switch to listening to the podcast on the  Apple Podcasts or Spotify app, as the dedicated GRE mobile app will be discontinued at the end of the month. Check out the free video course on real estate investing at getricheducation.com/course. Show Notes: GetRichEducation.com/575 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com GRE Free Investment Coaching: GREinvestmentcoach.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  For predictable 10-12% quarterly returns, visit FreedomFamilyInvestments.com/GRE or text  1-937-795-8989 to speak with a freedom coach 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:   Keith Weinhold  0:01   welcome to GRE. I'm your host. Keith Weinhold, the American dream now costs $5 million learn just what that will mean for you. The beauty of 50 year mortgages, then after 11 years, I share the most depressing thing I've ever said on the show today on get rich education.   Keith Weinhold  0:26   You know, most people think they're playing it safe with their liquid money, but they're actually losing savings accounts and bonds don't keep up when true inflation eats six or 7% of your wealth. Every single year, I invest my liquidity with FFI freedom family investments in their flagship program. Why fixed 10 to 12% returns have been predictable and paid quarterly. There's real world security backed by needs based real estate like affordable housing, Senior Living and health care. Ask about the freedom flagship program when you speak to a freedom coach there, and that's just one part of their family of products, they've got workshops, webinars and seminars designed to educate you before you invest. Start with as little as 25k and finally, get your money working as hard as you do. Get started at Freedom family investments.com/gre or send a text now it's 1-937-795-8989, yep, text their freedom coach, directly. Again, 1-937-795-8989,   Corey Coates  1:39   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  1:55   Welcome to GRE from Norwich, Connecticut to Norwich, North Dakota, and across 188 nations worldwide, you're listening to get rich education. I'm Keith Weinhold. You probably know me by now, but if you're new, I am an active member of the Forbes real estate Council. You can see my work in the USA Today. And of Paramount import, I am an active real estate investor. We're talking about America's top shaved mammal on a microphone here, but suffice it to say, this mammal has at least shaved just how can this slack jawed mammal persist in this environment? Well, I don't know, but I've been doing it here for more than 11 years now. More on that later. This is episode 575, and each episode's release is a bigger deal than releasing the Epstein files. Today is no exception, although today's show release will get fewer people in trouble than the release of the Epstein files. Speaking of people in trouble. It is the middle class. It's the average American and the average Canadian too, because it now costs $5 million to fuel the American dream. But yet, at the same time, hordes of people are now going the other direction, and they're getting poorer. The affordable housing crisis that we've talked about here seems to probably still have not reached its crescendo. Or perhaps, if you know music, it's the opposite a diminuendo. Things are getting to a low point. How bad is it? Getting well priced out of a permanent home. More and more Americans are living full time on RVs, not like nice, fancy RVs either. Beaters. 486,000 Americans are now estimated to live in RVs because they are out of options. And the more soul crushing part of this is that that number has more than doubled just since 2021 I've got two minutes of astonishing audio footage of this to share with you shortly about the RV living homelessness is up 18% Since last year, that figure is sourced by HUD. HUD has the best stat set on homelessness, and that's a problem that's increasingly visible in your own city, more likely than not. And you know, I have personally gotten into more than just surface level chats casually with food servers and baristas, just these quick chats with them. And you know what they divulge to me, that they're living in their car. Yeah, I'm not probing and asking about that sort of thing, but they just share that with me, yeah, food servers and baristas that I just met. They will often tell me that they're living in their car within five minutes of chatting with them, and when they do that, by the way, it also makes me wonder if they're trying to get me to feel bad for them, and they're freely telling me that just to get a tip from me. Well, today, mobile homes are even being coveted. I mean living in a trailer park that is affordable housing. We covered that on last week's show now the real estate company Redfin and Ipsos, they conducted a survey of more than 4000 US homeowners and renters, and they asked respondents about the struggle to afford housing. And it was astounding to learn that to string together a life where they have stable housing, how people are doing all these things, they're delaying having children, they're getting rid of their pets, and some are going through the discomfort of living with an ex spouse just to have affordable housing, as far as what is now almost half a million Americans living full time on RVs and growing since they can't afford a home. NBC covered this, and it is sad. Let's listen into just how squalid the living conditions are, quickly profiling two people as this reporter goes on their tiny RVs. I mean, as you listen to this, okay, keep reminding yourself, keep telling yourself this is America today. And as you'll see, this isn't even in a high cost part of the nation that we're about to profile here again, tell yourself this is America today. Well, this NBC field reporter gets shown the insides of two different RV units by two separate owners, each living by themselves, first a man and then a woman. This is about two minutes in length    Speaker 1  6:53   for Gus Francis. This is home a 20 year old camper he bought for $5,000 parked in an RV lot in Graysville, Tennessee, just north of Chattanooga. I got all my rosaries for protection everywhere. Books, books, books. now retired, he worked for decades as a commercial diver and hoped to live closer to his widowed mother, but when he sought a more conventional home, I just can't see how people with their normal job making 15 bucks an hour can afford an apartment without multiple roommates. Meals are made in the microwave, the stove unused for fear of a gas leak. Right next door is Debbie Williams. She sold her house in Kentucky to be closer to her grandchildren, but housing prices near Chattanooga increased by almost 50% since 2020 apartments are like about 1200 a month, but then you got your utilities to pay. This is permanent, plus it include is like 550 a month includes electric water, saving over everything. It includes everything. Debbie works nights, helping adults with disabilities, and says she likes her setup, even if the exercise bike doesn't fit inside. Okay? I like my shower. It's really nice. And then my bedroom, Debbie and Gus now among the nearly half a million people in the US living in RVs full time. I sometimes thought, Man, if I could have saved more money in the past. But what it was is, I don't blame myself, either, because I raised four kids with no child support, despite the tight quarters, plenty of room to build a community that matters. Ellison Barber, NBC News, Graysville, Tennessee   Keith Weinhold  8:46   gosh, cramped and modest conditions there again. Tell yourself this is America today, and see, here's the thing. From all outward signs, these two people profile. They're not substance abusers. They're not criminals that can't get a job. These are American workers that have been productive people throughout their lives. The first guy, Gus said he worked for decades as a commercial diver, and that part of Tennessee, it's not a place in the nation where the cost of living is exorbitant, either the crux of the problem here is not just the wave of inflation that started in 2021 the essence of it is the fact that inflation has outpaced wage growth. Will you ever get to having a $5 million net worth? Because that's what it takes to live the American dream today. Now, a while back, I told you how, if you amass $5 million really that's the number, that's the threshold where you could probably stop working and just invest such that you could live off it forever. But inflation. Changes that and it keeps upping that number. Well, since then, Investopedia recently came up with this $5 million price tag that's just for living the American dream in today's dollars. Let's look at what that really means, and then we'll add up the spending categories. This is really interesting. All right, the definition of the American dream. What that means is owning a home, raising two kids, retiring comfortably, and maybe throwing in an annual vacation or two. So a nice life, for sure, but nothing extravagant and okay, yes, there is this other angle of like, Money cannot buy the best things in life, and that's true. There's a lot to be said for that, but this is not a relationships in a dating show, okay? So that's why I'm covering the financial angle here, and later today, I'll tell you how much the typical American makes throughout their lifetime, which is much less than 5 million bucks. But to get to that exact $5 million total, which is the least that you now need in net worth, the estimated lifetime costs of eight milestones most often associated with a dream were added up by Investopedia. And now, of course, everyone's dream is different, and housing costs differ nationally. But, I mean, this is pretty reasonable. Here they are. This is how much it takes for each of them today. And I'm doing some rounding retirement, over $1.6 million that's what it takes now. Healthcare, 414k this is all spent over the course of your lifetime, a wedding 38k And I hope that is wedding singular, not weddings plural, owning a home, 957k raising two children and paying for college that costs. 876k and then owning a new car, that is another 900k Yeah, that sounds like a lot, but that will include costs of financing and insurance and depreciation on cars throughout your life, and then a yearly vacation is 180k throughout your life, and pets, 39k All Right. There it is. That is the $5 million total for the American dream. And again, that is only in today's dollars. Inflation will, of course, make all of these future costs run up. All right, housing is really the biggest part of the dream. I mean, second to retirement anyway, all right. Again, the lifetime cost of housing, like I said, is 957k just a year ago, it was 930k okay, well, the national median list price of a single family home is about 430k I guess that makes sense. Most people live in multiple homes throughout their lives. Well, the price per square foot is up 50% just since 2019 that is what is pricing people out. That is what is making people become your renter instead of a homeowner. Well, this $5 million required for the dream, that is why more people are homeless or more people are living in RVs. This means that the demand for the product that you're providing to the marketplace affordable housing, that demand is considerable, and that demand is durable, and the median lifetime earnings for one American with a bachelor's degree is only $2.8 million. All right, so that's just over half as much as it takes to live the dream. But here's what's appalling. Are you ready? Here we go. This could be the most depressing and concerning stat you've heard on this show, maybe one of the most depressing and concerning in your entire life when you really think this through. All right, now, what do you think of as sort of a model for someone that is stable? How about both married and a homeowner? I mean, yeah, they're two big markers, married and home ownership that is foundational stuff when your kids grow up to be adults, if they become married in a homeowner. I mean, come on, who would be disappointed with that? That would probably make you feel proud and fulfilled. I mean, the future of the nation that is children and stable household formation material, right there. Well, by age 30, how many people do you think are married in a homeowner today, and how has that changed over time? What do you think this is the percent of 30 year olds who are both married and homeowners in the US? Right back in 1950 it was 52%.  today Okay, it is just a quarter of that. Only 13% of American 30 year olds are married homeowners today. Gosh, is that appalling? Or what? I mean, it doesn't exactly give you hope for the future, since Owning a home is a key pillar of the American dream, then the best thing that our local, state and federal lawmakers can do is to make it easier to build new housing. That is one of the most depressing stats I gave in 11 years of doing the show, probably the most depressing another thing we can do is not protest or block new development, no nimbyism.    Keith Weinhold  15:45   Now, earlier this year, the White House announced that they are considering declaring a national housing emergency. In fact, you saw me put a link to that in the section of our newsletter that we call the five, though we haven't seen a national housing emergency declared yet. If we do it all, the motivation behind it is largely to make housing affordable. One piece that's been floated out there is the introduction of a 50 year mortgage so that way mortgage payments are spread out and made lower than they are with the most popular mortgage in America today, by far, the 30 year fixed rate mortgage. Now, I wouldn't say that a 50 year mortgage is eminent and is about to happen. We can't say that, but it could be creeping closer. I mean, a 40 year mortgage that is already more of a thing. You've got 40 year HUD loans and 40 year DSCR loans both already here for residential property. We do know that buyers buy property more so based on a payment than they do the overall price of the property. Now look, I'll tell you if I could somehow magically snap my fingers and convert all of my 30 year mortgage loans over to 50 year loans. Oh, I sure would. It would lower my payment and increase my cash flow. Yes, my debt would hang around longer and well, we're right back to, you guessed it, financially free beats debt free. Let's run that comparison on a 300k loan at 6% interest, a 30 year mortgage payment, that is 1800 bucks a month, but on a 50 year loan that would be just 1580 Yeah, $1,800 versus 1580 1580 Well, that is going to boost your cash flow by $220 a month on that property, just by going from a 30 year to a 50 Year at the same interest rate. So maybe not as much of a difference as you thought, but probably worth doing, at least in the mortgage world debt free. I mean that concept of debt free that makes most people, in exchange for that debt free condition, grind and toil and work overtime and lose family time and eat dirt for decades because inflation and all these other forces work against them. And yes, this is just with mortgage debt that I'm talking about here. Of course, some debt is bad, like unsecured, high interest rate credit cards or doing a buy now, pay later, plan on a pizza that you split into four payments. That's ridiculous. And those are the type of debts you've also got to pay yourself. That's not what we're talking about here. In fact, it gets even worse for the mortgage debt free person. That extra $220 you're paying by having a 30 year loan instead of a 50 year loan, that would mean you're accumulating more dollars in home, which are illiquid. And again, 50 year loans don't exist yet, but understanding this concept and this trade off helps you be a better investor. Look, a debt free person can still be broke in the short term if they have a meager income, and they can be broke in the long term if they are not leveraging assets and debt. Being debt free, that is like bragging that you quit the gym so that you'll never pull a muscle again. I mean, you're safe for now, but you're going to be weaker in the long run. Let's use a different example. Let's just run a different set of numbers. Let's say you've got a 400k mortgage at three and a half percent interest, though your monthly payment is 1796 on a 30 year fixed. Some people think, Oh, if I just throw an extra $1,000 a month at this, I'm going to be debt free years sooner. And the truth is, yes, you will save 90k in interest, and you are. Going to own the house outright earlier. But what's the opportunity cost if that same 1k a month went into investments earning even 7% annually, after 15 years, it grows to about 311k   Keith Weinhold  20:16   Well, that is more than three times the interest savings, which again, was only 90k so for some paying off the mortgage early feels like some sort of emotional win, but it is rarely the best financial win. I mean, that is like benching LeBron to save money on Gatorade. I mean, that is a bunch of nonsense. So debt free is the floor. Financially Free is the ceiling. I mean, do you know about those popular call in shows where people are advised to lower their standards, diminish their quality of life, not go on vacations in order to get debt free? Oh, dear. I mean, those shows have got to be screening their callers closely to ensure that no one savvy actually gets on the air. Somebody, hey, how about you? Why don't you get on the air? Get on that show. Ask them some tough questions about getting mortgage debt free. You tell them yeah. Tell them that your ROI on all that equity is zero because home values change regardless of equity positions. Tell them that a home is never paid off because you'll still owe property tax and maintenance and repairs and utilities and maybe insurance and an HOA. Tell them you lost the gift of inflation eating your debt while you sleep. Tell them mortgage interest is often tax deductible. Tell them that their leverage is gone, and all these facts, every one of those I just stated, they're now figuratively not just talking. They're yelling. They're screaming now, because markets of all types are at all time highs. So instead, if you had used those funds to pay off a property, they would have really missed out on earning big returns for years elsewhere, a steep opportunity cost. Suffice it to say, I would love to see the widespread adoption of 50 year mortgages, and I would use them. The other thing that would happen is that it would make home prices rise further, because more people can afford the lower payments to bid up the price. So actually, here's something that I'm wondering about with you. Did you ever have a paid off property, and then realize all of this, and then go and get new financing on it again. Have you ever done that? If you have that would be really interesting. Let us know if you've had a property in a paid off position, realized the vulnerability and the opportunity cost of having all that illiquid equity, and then you went and put debt back on it. Let us know at get rich education.com/contact. That's get rich education.com/contact. Like Ridge lending group knows this when I have chili ridge here, like she and I discussed, you even get the cash chunk out tax free. And here's what else is interesting about this. Just say you know how out in the world of real estate agents, where people are buying and selling property, well, whenever a buyer's agent knows that that listed property is owned by a seller that still has a mortgage on it, well the assumption is that the seller, well, they might be a little more motivated to sell since they have to make mortgage payments on that property that they might not even be occupying anymore. Well, that is backwards. In most cases, you should be more motivated to want to sell a property if it's paid off because you've got all that dead equity in it that needs to be released through that sale. So really, a listing agent should be thinking, this seller has got to sell this property with urgency, if for no other reason, because he or she has lots of equity in that property. That's how to think about it. The world has it 100% backwards. That mindset is 180 degrees from the truth coming up next.    Keith Weinhold  24:25   Did you know that this week? Yes, right here in mid October every year is historically the best week of the year to buy a home. Also, what's it like behind the scenes here on the microphone? I've got that and more straight ahead. I'm Keith Weinhold. You're listening to get rich education,    Keith Weinhold  24:44   if you're scrolling for quality real estate and finance info today, yeah, it can be a mess. You hit paywalls, pop ups, push alerts, Cookie banners. It's like the internet is playing defense against you. Not so fun. That's why it matters to get clean. Mean free content that actually adds no hype value to your life. This is the golden age of quality email newsletters, and I write every word of ours myself. It's got a dash of humor, it's direct, and it gets to the point because even the word abbreviation is too long, my letter takes less than three minutes to read, and it leaves you feeling sharp and in the know about real estate investing, this is paradigm shifting material, and when you start the letter, you'll also get my one hour fast real estate video, course, completely free as well. It's called the Don't quit your Daydream letter. It wires your mind for wealth, and it couldn't be simpler to get visit gre letter.com while it's fresh in your head, take a moment to do it now at gre letter.com Visit gre letter.com    Keith Weinhold  25:55   the same place where I get my own mortgage loans is where you can get yours Ridge lending group NMLS, 42056, they provided our listeners with more loans than anyone because they specialize in income properties. They help you build a long term plan for growing your real estate empire with leverage. Start your pre qual and even chat with President Caeli Ridge personally, while it's on your mind, start at Ridge lending group.com. That's Ridge lending group.com. Hi.   Russell Gray  26:29   This is Russell Gray, co host of the real estate guys radio show, and you're listening to get rich education with Keith Weinhold. Don't quit your Daydream.   Keith Weinhold  26:36   welcome back to get rich Education. I'm your host. Keith Weinhold, there's a lot to look forward to in future months here on the show, new content from me, new prominent guests, the return of some favorite guests, a live event to tell you about and our annual home price forecast show, where I'll also reveal if last year's GRE home price prediction for this year came true or not. I have got to say I have nailed it to the exact percent a few years in a row now. But if you remember, before this year began, I forecast 5% national home price appreciation for this year. We will see how that turns out, but home prices are only up one or 2% year over year so far. Yes, not only do I make the forecast, I actually follow up with the previous years to check the accuracy. Don't you wish everyone did that? Well, it is October, and it's the month where you got to be ready to defend your love of candy corn and the same Americans complaining about inflation also bought a 40 foot skeleton for the front yard. Well, the best time to buy a home, historically, is this week this year. It happens to fall on October, 12 to 18th, as it turns out. Why would that be? It sounds kind of random, doesn't it? Well, the NAR recently reported on this, and this is what they give, a three word moniker, aptly named the best week. That's what they call it, the best week. Now, this applies more to primary residences into one to four unit investment property, but it's a little applicable to apartment buildings too, and this really helps you understand real estate buying, selling and consumer nature. Historically, this week offers the most favorable balance of market conditions for buyers. This is when inventory tends to be elevated. Prices typically dip below their seasonal peak. The buyer competition slows, and just the overall pace of the market becomes more manageable. Again, quote, unquote, the best week this seasonal shift every year, it's influenced by school schedules and even weather patterns. Housing activity typically ramps up in the spring. It peaks in the summer because a lot of families try to move while children are out of school and the desire to settle before the new academic year that's back when you've got the warmer weather and the longer daylight hours, and you got these curb appeal enhancements from Lush summer foliage that also makes spring and summer an ideal time for showings in inspections, that adds further momentum to the summer surge. These sort of things actually matter. But then the calendar shifts into fall, and demand naturally tapers off. Every year you got families with school age children that exit the market, and then the remaining inventory begins to linger longer, and prices respond by dipping below peak levels. And homes tend to stay on the market longer. This happens every year. That makes for conditions that benefit late season buyers. So listings tend to become more plentiful now each October inventory levels, they tend to peak in early fall, and that's why it's about the best time to buy. You have less competition from other buyers, home buyer shopping during again, what is called the best week, you should expect less competition. Properties tend to attract the most viewership per listing early in the spring, and that's when buyers trickle into the market before the inventory picks up. And then the summer ushers in both more homes and more shoppers, and that means that buyers face quite a bit of competition in the summer, so the best week that should offer more time for buyers to deliberate, and it can mean that sellers are more eager to compromise. And the numbers back that up historically that this is the peak week for price reductions. So what can you do if you're potentially in the market? You might want to hit up gre investmentcoach.com and have our coaches connect you with the right income property if that's the right move for you, and doing that is totally free. In fact, most listeners buy their first income property that way. In fact, if you had a good experience with a GRE investment coach, go ahead and tell a friend about it. Now, let's say that you had $1 back in the year 1995 so you've got a green dollar bill in your pocket 30 years ago. All right. Well, what would happen to your dollar if you saved it versus putting it in stocks versus putting it in real estate? What do you think would happen in each of those three scenarios? Let's do it. Let's compare well, because of inflation, your dollar would be worth less than 50 cents if you had saved it, yeah, it would have just 47 cents worth of purchasing power today. Instead, if you had put it in the s, p5, 100, your dollar would have seen some pretty significant growth. It would be worth $19 today. That's how stocks have performed over the past 30 years. But what about real estate? Well, there are so many ways to do it specifically. What if it were a rental property where real estate pays five ways, not just one or two like stock. What kind of return can you expect from real estate? Well, when you add up all five ways, just using historic norms like classic rates of appreciation and a four to one leverage ratio, you get 38% as a total rate of return in year one. And then that rate starts to fall because equity accumulates. And if you're not initiated on that, and it sounds like such a high flying number, you can see my free video course that teaches you this at get rich education.com/course, the most valuable free course you've ever taken in your life. At get rich education.com/course, let's just get conservative and say so many things go wrong with your property that we're going to round that 38% all the way down to 20% per year. Yes, if you're new here, those sound like ridiculous rates of return. Anyone that's listened here for a while instead has been enjoying those rates of return if you bought right? I mean, you have so much more time and money in your life now, but at 20% ROI, your $1 from 1995 would be worth $237 today. Wow, and again, if it were saved under a mattress, it would be worth less than 50 cents, and in the sp5 100, just 19 bucks. This is a simplified way to demonstrate that compound leverage beats compound interest. I mean real estate beats stocks by more than 12x right there and see that's the type of multiplier that you're probably going to need on your money. Since it already takes $5 million to live the American dream, you might very well need $25 million over the next few decades, while the 401 K was created around 1980 the Roth IRA created in 1998 and the GRE podcast was created on October 10, 2014, and I trust that it's had a more positive impact on your life than any of those other vehicles.   Keith Weinhold  34:56   This means that I've released weekly episodes here for. 11 years, never missing a week at all, 52 weeks a year, and we've never replayed an old show either. I am here for you. Integrity means doing what you say you're going to do. Vedran, our sound engineer, has been here with GRE for 11 years as well. That is the team, the duo, that's been bringing you this show. And also, I didn't even tell my team here at GRE this yet, so I guess they'll learn now, the platform business rate just ranked us and awarded get rich education the best of the year, 2025 as a real estate school. Yes, we learned that this award is based on outstanding reviews from real customers, not nominations or votes, but the best of the year award comes from feedback through listeners just like you. Thank you for that, and thanks business rate this show and real estate investing, they are the main things that I do, and I expect to be here for you well into the future. Now, it's sort of funny here, kind of a paradox on the show I talk about income production that's largely passive, yet producing this show at a high level for 11 years here on this side of the microphone is not passive. It is highly active. I got a reminder of this recently when a doctor buddy of mine said he considers starting a podcast on the side. Let me tell you what I shared with him that is probably a terrible idea to launch an ongoing podcast where you'll constantly carve out the time to produce high quality week after week. That is not a side gig. 99% of those scenarios fail. You've got to deliver great new content yourself. You've got to have a network of guests to compliment you. You got to perform research and then cross check your research, because you've got to publish real, true information. You need a reliable editing solution. You need some organizational skills. You're going to need to hire some skilled and specialized assistance in the real estate world. You've actually got to get out into the field and visit cities in person to corroborate your research on the ground and go to in person conferences. I mean, there's a lot to do, but I did tell my doctor friend, you know, the good news is that there are alternatives to starting a show. There are a couple of them. In fact, first, you can do a 10 episode mini series on your area of expertise, host it on YouTube or Spotify and then send that link to clients. Another thing you can do is get yourself booked as a guest on someone else's show, and you'll pay a podcast booking agent to do that one strong guest episode that could do more than 100 of your own episodes ever could. So that's my guidance. In case you know any thought leaders that considered doing that, and what things look like from my view back behind the mic, it is not passive income, although my investing mostly is and another thing, if I've hosted a past guest on the show, and I get feedback from you or other listeners that they're not looking out for your best interest, or they don't want to do the property rehabs that they promised. Well, they are not coming back onto the show. Instead, we move on. I am here to do good and connect you only with providers that are doing good. Another show related announcement, and if you listen here each week through the get rich education mobile app. This is really important if you're listening to me right now on our dedicated mobile app, the hosting platform terminates at the end of this month, so you're going to have to listen in a different way. Go to either the apple podcasts app or the Spotify app and search get rich education to keep listening that way, you'll keep learning, stay motivated and never miss an episode of my incomprehensibly slack jawed vocals, profligate and unrepentant. Again, if you're listening to me right now on our dedicated GRE mobile app, the hosting platform terminates at the end of this month, you'll have to listen in a different way. Go to either the apple podcasts app or the Spotify app and search. Get rich education inside those apps in order to keep listening after this month, until next week, I'm your host. Keith Weinhold, don't quit your daydream   Speaker 2  39:41   Nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of get rich, education and. Will see exclusively.   Keith Weinhold  40:09   The preceding program was brought to you by your home for wealth. Building, get richeducation.com.  

Are You Missing Out on Real Estate's Best-Kept Secrets? Imagine investing in properties where: Tenants fix their own roofs You can boost income with a few tech upgrades Most investors are too scared to even look This episode reveals two underground real estate niches that could change your wealth strategy forever: Mobile Home Parks and Parking Lots Special Guest: Kevin Bupp, an investor with over $1 BILLION in real estate transactions under his belt shares how everyday investors are building wealth in places others overlook. Grab your FREE real estate investment white papers and unlock hidden wealth strategies at InvestwithSunrise.com  Resources: Text FAMILY to 66866 Call 844-877-0888 Visit FreedomFamilyInvestments.com/GRE Show Notes: GetRichEducation.com/574 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com GRE Free Investment Coaching: GREinvestmentcoach.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  You get paid first: Text FAMILY to 66866 Will you please leave a review for the show? I'd be grateful. Search “how to leave an Apple Podcasts review”  For advertising inquiries, visit: GetRichEducation.com/ad Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript:   Keith Weinhold  0:00    Welcome to GRE. I'm your host. Keith Weinhold, talking about first mobile home park investing and then investing in parking lot assets. What makes them profitable? What gets investors excited about mobile home parks and parking lots? What are the risks and what's the future of both of these real estate asset classes? All with a terrific guest today on get rich education.   Keith Weinhold  0:28   You know, most people think they're playing it safe with their liquid money, but they're actually losing savings accounts and bonds don't keep up when true inflation eats six or 7% of your wealth. Every single year, I invest my liquidity with FFI freedom family investments in their flagship program. Why fixed 10 to 12% returns have been predictable and paid quarterly. There's real world security backed by needs based real estate like affordable housing, Senior Living and health care. Ask about the freedom flagship program when you speak to a freedom coach there, and that's just one part of their family of products, they've got workshops, webinars and seminars designed to educate you before you invest. Start with as little as 25k and finally, get your money working as hard as you do. Get started at Freedom family investments.com/gre or send a text now it's 1-937-795-8989, yep, text their freedom. Coach, directly. Again, 1-937-795-8989,   Corey Coates  1:40   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  1:56   Welcome to GRE from Burlington, Vermont to Burlington, Washington and across 188 nations worldwide. I'm Keith Weinhold, and you are inside get rich education. We are all firmly in the fall season. Now, autumn, if you prefer. And as we often do, we're discussing residential real estate investing today, but it's two different and distinct niches within that, and I guess they both have to do with wheels, as it turns out, mobile home parks in the first part of the show and then parking assets later today. I think there's a compelling future use case for at least one of those two to speak to our international audience for a moment, but this will actually help clarify things for you. If you're a North American too, though it's called a mobile home, well, it doesn't really have that much to do with wheels. There might not be any wheels on it. And if a resident lives inside one of these for, say, a decade, well then it's probably going to remain attached to that same location on the ground all 10 years. That's why a mobile home is often referred to now as a manufactured home. What it is is it's a factory built residence, constructed on a permanent chassis and then transported to a site. I mean, that's what we're talking about here, and they are a less expensive alternative to traditional homes that have, say, a cast in place, concrete foundation. So therefore, understand, mobile homes are affordable housing, highly affordable housing, and that's really important in this housing affordability crisis. And I've talked quite a bit about that on the show, and the meager national supply of that all types of affordable housing, they are recession resilient. I mean, that's just one reason why we love affordable housing types here at GRE where we're often buying rental property just below an area's median price. You know, people think of mobile home parks MHPS, that they're all crime ridden and that there are slumlords. But that is not true in every case. There are actually nice ones. If you're an MHP investor, you often only own the land beneath the structure, and not the mobile home itself. The resident owns the mobile home itself. So therefore, if there's a leaky roof or a window needs replacement, or flooring needs replacement, that is on the resident to fix, not you. MHP dwellers, they often don't have to pay property tax, though, because, like I said, they don't own the land. The landlord, or the community, therefore, is the one that has to pay the property tax. So there's some thoughts on mobile home parks for you, parking asset, real estate that's still settling into its post pandemic pattern with Return to Office mandates that aren't really fully matured yet. We're still settling in and seeing how that is going to look. And then when it comes to parking lots, you got to wonder about its future. When you consider the proliferation of autonomous cars, will that make parking lots obsolete? I'll have our guest address that longtime GRE listeners, you might remember episode 13 of this show, yeah, almost 11 years ago, that episode was about how autonomous cars will affect your future and your real estate and the very need for parking lots and a lot of what I discussed there in early 2015 that is beginning to come true, but this autonomous car adoption that is way slower than a lot of people thought. I mean, most Americans, they still have not been inside an autonomous car at all. A lot of people are still saying that they don't trust that that should change soon. But as for now, I'm just guessing that fewer than one in 10 Americans have been inside an autonomous car, probably quite a bit less than that. Today's terrific guest has over $1 billion in real estate transactions under his belt. This should be interesting. He is a specific investor in both mobile home parks and parking assets.   Keith Weinhold  6:26   Today's guest is a seasoned real estate investor entrepreneur, and he's a prominent voice in the space, because he hosts the real estate investing for cash flow show. He's built a strong reputation as an expert in two niches that have less competition than some other investments, and we'll discuss those two today. They are mobile home parks and also parking asset investments too often overlooked yet pretty profitable niches, and he and I have a lot in common. I'm on the Forbes real estate Council. He is on the Forbes Technology Council. He and I are both native Pennsylvanians. It's been quite a few years. Hey, welcome back to GRE it's Kevin Bupp.    Kevin Bupp  7:06   Hey, Keith, thanks for having me back. And yeah, excited to be here, my friend, and excited to finally get caught up. When you referenced that, it was nearly eight years since we last spoke. I was taken back a little bit because A lot's happened in past eight years.    Keith Weinhold  7:21   I know that's wild with where things are at. People didn't even know the meaning of the word pandemic when you were last here on the show, Kevin, let's talk about really the case for mobile home parks. I know they can be a strong, cash flowing asset once people are really dialed into them. I think what's interesting is, since you were last here on the show, really, from the pandemic on, it's been a well documented national story where lay people just know about how the supply of housing just is not adequate in order to meet demand, and what that usually means, just talking about the single family space is, of course, they're building, but they're not building fast enough to keep up with population growth and housing demand. But what's so compelling about mobile home parks is, I mean, they're barely even building them anymore, like they are contracting in supply in a lot of areas. So tell us more about the compelling case for mobile home parks.    Kevin Bupp  8:16   Yeah, well, you had a big one. You know? It's an asset class that has a diminishing supply, right? We can get into the reasons behind that. But, you know, just from a high level perspective, one of the other factors as it relates to, you know, available homes, available housing for the growing population, is that while they are building stick boat homes, they're not fulfilling the needs of those that actually need affordable housing. So there's not a lot of the average working household can't necessarily afford the starter home any longer, and so mobile home parks are unique. I truly feel they're the best vehicle to help us fill this void of housing, affordable housing that is really needed throughout the entirety of the country. I mean, there's very few markets in this country that are still affordable. There's some places you can still go buy. You can probably go to Flint, Michigan, buy a home for 50 or $60,000 but generally speaking, I think the median home price today, I think it's crested over 400,000 I don't have the exact number, but I do believe over $400,000 and the average starter family, or even folks that are, you know, just working two jobs, making 40, $50,000 a year, they can't afford to purchase that type of home, a $400,000 home. And so again, these mobile homes you had mentioned, they're not building mobile home parks any longer. However, they're still building new mobile homes, and it's kind of interesting what's evolved over the past 10 years. The quality of the product is it's like a night and day difference of what it looked like 1015, years ago, of the homes themselves to what they look like today, and what you get for your money. You know, the average single wide that we might be putting into a community, brand new home, 13, 1400 square feet. Someone could come in and for roughly $80.70 $80 a foot, can buy a brand new home that's never been lived in before, that's unheard of, that's absolutely unheard of when you compare it to the average or the median home price across the US today. So it really is kind of the last frontier, and it's typically any market that we're in, if you take the same comparable quality of an apartment complex in the same, you know, area of town, the same school districts, we're typically about 20% less all in cost to actually own your own home, versus that of even renting the comparable size apartment. So it's a very compelling reason for folks that are looking for an affordable place, but not just affordable, but clean, safe and quiet. I mean, like we run very respectable communities, they're in the really good school districts. They're places that folks are proud to live and raise their families, then,    Keith Weinhold  10:22   yeah, that's true. This would really help meet that affordability challenge, another problem that's been so well documented. Talk to us more about what makes mobile home park investing different from investing in single family rentals or even a fourplex or a 20 unit apartment building.    Kevin Bupp  10:40   A lot of the fundamentals are similar, and I would say that it's probably more comparable to that of an apartment complex to a certain degree. Just think of it as a horizontal apartment complex, where units aren't stacked on top one another. They're just layout horizontally more wider than they are tall. But the bigger difference is in most instances, we don't actually own the homes, so the residents own the mobile homes, whereas we as community owners own the infrastructure, we own the land. We own the roads, when the sewer lines, the water lines, the common areas, if it has a clubhouse, if it has amenities, so we maintain and we own all that collective area where the folks basically come and they bring their home, they fix it to the ground, and then ultimately pay a slot rent to have their home there on that premise. And so for us, it's very attractive in that the resident that's in their home, if they have a Roofing Leak, they have a plumbing leak, they have their HVAC system go out. They're not calling us like they enter an apartment complex. It's on them, yeah. So they're homeowners. And a couple other really attractive elements of that that come as a result of having residents that live there, not just renters, is that they're very sticky. And so just like in a standard single family subdivision, where you've got folks that might have lived there for generations, you just reference that your parents literally live in the same house, and so they've lived there a very long time. It is quite common to find residents and even multi generations of the same family that live in our communities. And a couple come to mind. We just celebrated a woman's 50th year of living one of our communities in brendalin. And so you've got sticky resident base. There's not a lot of turnover. And then the last big piece of it that is really attractive us is a homeowner mentality is very different than a rental mentality as far as upkeep. And so you got folks that they plant flowers, they ensure that their units have curb appeal, right? They put flags out, they put decorations out during the holidays. It's a lot more warmth than that of what you might find in a traditional rental apartment complex.    Keith Weinhold  12:26   So what all does the tenant pay for? You mentioned that they pay for the lot rent. What other expenses do they have? How does that look for them?    Kevin Bupp  12:36   Typically, you know, utilities. So they'll have their own individual meter. They'll pay, you know, direct to the utility company, utility provider, water and sewer as well. They'll pay for their water and sewer usage. And that can come in many different forms. Sometimes, where our communities have public utilities, where it's built directly by the utility provider, sometimes it's more of a private system, where we're actually acting and participating as utility provider and building them back for their usage. Really the standard things that you might pay for if you live in a single family home. I think so the areas where it might differ. And honestly, this is really community by community for us, some of our communities, literally, the residents, they pay for the utility use, but outside of that, literally, we mow the grass, we shovel their driveway, we shovel their walkways, we handle all those type of elements, whereas some other communities, the residents we might require that they actually maintain their own grass so they their own grass, so they have to mow it, or hire a a third party vendor to come in and mow it. They might have to actually shovel their own driveway. And a lot of how we run a community really is depend on how it used to be run when we took it over. You know, if it's not broke, we don't fix it. And so a lot of times we don't like shaking things up too much. If they're used to a certain way, we just keep it status quo and continue rolling on of how the prior ownership used to manage it really similar elements of what a folks, an individual living in a single family home, might pay for so very similar.    Keith Weinhold  13:48   Okay, so they pay you the rent for the lot. This puts nearly all the maintenance and repair burden on them. So is there any sort of HOA like body here?    Kevin Bupp  13:58   Not in our community. You do find some communities, and most of these that have an HOA are typically a community that's gone through more of a co op type arrangement to where the actual individuals only like fractionalized share of the community, the residents that live there, and so then they have a the oversight from an HOA that's managing the daily operations, managing the financing, managing the budget, things like that. But in our communities, no, there is not an HOA, I'd say the one other thing that's typically included in lot rent is they don't have property taxes, right? So we own the land, and so the individuals that live in these units aren't paying individual property taxes. A lot of states require that they have a registration fee, just like you do in your vehicle, that they would have to pay on an annual basis. And then most of them have insurance as well. You know they're covering you're carrying homeowners insurance on the actual dwelling itself. Outside of that, it's, again, just pretty straightforward,    Keith Weinhold  14:47   yeah. So here we are in this low competition, low supply niche that we're talking about here we think about communities and nimbyism and building, not in my backyard. ISM oftentimes that's a sentiment that residents of a certain area have, residents say something like, ah, we don't want this new 200 unit apartment building or mobile home park here in our single family home neighborhood, like, that's nimbyism. But in mobile home parks, to me, it seemed like nimbyism is often at a different level. It's at the government or the municipal level, like your town or city, might not want one, because it doesn't generate as much property tax revenue as a new single family neighborhood would. Is that the reality? Kevin,   Kevin Bupp  15:31    that's absolutely the reality. And that's why you don't see new parks getting built. I think last year, ones that I know of, there are about a dozen that were built, many more than that. They're actually shut down, you know, for redevelopment purposes. And so that is absolutely huge part of it. In fact, you know, it's frustrating, because pretty much every municipality across the country the topic of affordable housing, it's on the radar, and it's probably one that is discussed quite often. And in all reality, again, these mobile home parks really would help resolve that challenge at most of these you know, municipalities are the shortage of homes, affordable homes, that they're facing across the country. And so, you know, another big piece of it, you mentioned the tax basis, absolutely, you know, the municipality would make, they'd have much better tax revenue from pretty much anything else that could be built there. And so that's a big barrier. But the nimbyism piece of it, I think a big part of that is it's unfortunate. I think it's getting better over time. There's bad operators in our space, just like they're bad operators in the apartment space, just like there's bad operators landlords that have single family homes that just let them deteriorate over time and don't repair things. Unfortunately, we kind of get lumped all the mobile home parks get lumped in that bad bucket. And so while there's, you know, I always joke and say there's mobile home parks that are on the wrong side of town, wrong side of the tracks, right? You don't want to go to and during the daytime. Well, guess what? There's subdivision, the single family home, neighborhoods that are the same thing, and there's apartments that are like that as well. You don't go anywhere near them. And you've got the middle of the road, right? You've got just the good, hard working, blue collar folks that want to send their kids to good public schools. We've got those communities apartments are that way too single family home subdivision, you got white collar stuff. You got some higher end stuff. Unfortunately, we kind of all get lumped in that bad bucket. That's where the assumption that's made by folks that don't understand mobile home communities have never driven through one. They just assume that it's all, you know, basically, drug, sex, rock and roll, the wrong element that we do not want in our neighborhood. We don't want anywhere near us. It's going to devalue our home prices. And for that reason, you just don't see them getting built. It's unfortunate, but it's the truth.    Keith Weinhold  17:20   Yeah, I'm just thinking about the mobile home park that I drive past most often. It's sort of walled off. There's maybe an eight or 10 foot high wall around it. I don't know if that's something that the municipality erected to sort of screen its appearance off, or something that the mobile home park built, which is my guess as to who built it, but not all mobile home parks look blighted   Kevin Bupp  17:43   absolutely, yeah. And I don't know the case that you just referenced there. I mean, it could be for sound deadening purposes, if it's off of a busy road. It could have been something put up as far as just to kind of shield off so folks that are driving past don't see the community. My guess would be that's probably not the the reason that was built. But in any event, these are, there's, you know, we've got a number of communities, Keith, that if you drove through, and I didn't, if I blindfolded you and you drove in, so you went past the entrance, you went past a sign that said manufactured home community, and I took you down a road, you wouldn't believe that you were actually in a mobile home park. Some of these homes, they're double wide homes, and they look like ranch homes, and so they're actually laid out perpendicular to this, or parallel to the street, and then they have two car site built garages that are attached to them via breezeway. So they look like your traditional ranch style home, but they're absolutely 100% mobile homes that could be moved if you wanted to move them, and for a fraction of the price of what a neighboring single family home might sell for. So there's all different qualities. They all come in different shapes and sizes. But to my point earlier, some of these communities, they're not even affordable. There's actually, there's down here in Florida, we've got what we call lifestyle communities. It's very common out in Arizona as well, where it's a lot of times a second home for snowbirds, you know, retirees that want to come down and want to live an active lifestyle. You know, they want to have two swimming pools. They want to have an activities director. They want to have, you know, shuffleboard and pickleball courts and tennis courts, and they want to live this lifestyle. And those units are anything but affordable. In fact, there's many. There's a community down the road for me that, you know, their lot rent is $1,200 a month, and so you factor that in with probably a house payment. And you know, you might be looking at 2000 to, you know, $2,300 a month, all in for the house and the lot rent. And so not necessarily in the affordable scheme of things, but they come in all shapes and sizes and again, unfortunately, we just get lumped into that bad bucket. It's unfortunate because I do think that we could really help start making a dent in this affordable housing crisis. I don't how it's going to happen any other way. I really don't, because we can't build affordable products at this point in time. It's not possible    Keith Weinhold  19:37   a posh an exclusive mobile home park there that you're referencing in Florida. As paradoxical as that sounds, tell us, Kevin, how that really works, because I know you help investors get in to mobile home parks. Does this mean an investor owns a full Park? Or I wouldn't imagine you're just doing it at the level where you just own one lot and then have One dweller pay you the lot rent. So tell us about how it works from the investor angle.    Kevin Bupp  20:05   We have fund structures that we typically roll out through sunrise capital investors and any one individual fund will own somewhere between nine to 13 somewhere, typically in that range, mobile home communities. These communities can range in size from maybe as small as 80 or 90 lots to the largest community we own at present time is 780 lots. And so it's quite large. I mean, the size of a small town. But essentially, investors come in and they own a based on their investment. They own a proportionate share of the various properties that are owned underneath that fund umbrella. And so one, an individual, might come with 100,000 and own a smaller proportion share than someone that comes in with a million dollars. But they are owners. They're absolute owners. They participate in the cash flow, they participate in the the upside, and they participate in the proceeds. When we have capital events, either cash out refinances or potential sale events.    Keith Weinhold  20:56   Tell us more about why it's so profitable. Why do mobile home park investors get excited,    Kevin Bupp  21:01   as with anything, Keith, you know, you got to buy it, right? And, you know, we look at a lot of deals, and a lot of deals don't pencil like, if we bought it for what they're asking, we would make money. We might lose money. And so the money's made on the buy, just like with any other type of real estate investment. But I think the one factor that really has allowed mobile home parks to be an attractive investment vehicle over the past, really, the last decade, it's grown the attention of lots of different private equity groups, institutional investors, that 15 years ago, they weren't in the space, and the biggest reason is a lot of these. It's a very fragmented niche, and so there was no consolidation that existed 10 years ago. There was really only two public traded companies outside that. It was mom and pops, mom and pops, that typically owned one, maybe sometimes two or three communities, but it was just a very fragmented niche. And what you find those fragmented niches that there's a lot of inefficiencies that exist in the operations. There's a lot of inefficiencies that exist with regards to utility management or managerial oversight within the community, or even keeping up with market rents. And so very often, we'll get into a community we just bought one at the end of last year, and right outside of Ann Arbor, you know, great sub market in Michigan. It's it literally has never traded hands. It was built back in the 80s by the gentleman we purchased it from. He was a subdivision developer, but he got into the manufactured housing space, so he built this, what looked like a subdivision, but it was mobile homes and and he basically owned it up until we acquired it last year, but gorgeous community, well maintained, needed some upgrades, different amenities that just were a little worn out and tired. But the biggest element within that community was that the market rents in the local area were roughly $800 a month. $800 a month for lot rent, and when we purchased it from him, the average lot rent throughout the community was $477 so there was a significant loss lease that exists. And we see this quite often with just over time they've owned it, free and clear, they go 567, years out, doing rent increases, and sooner or later, they find themselves in a situation where they are severely below the local market rents. And so there's typically a lot of loss, at least recapture, that we find going into these communities. Sometimes we'll also go in and we'll find there's a lot of waste with the water and sewer cost. It might not be billed back for usage to the residents, to where if you're not paying for something, sometimes you're abusing it. And a lot of times we can go in and put individual meters in and almost send entirely that savings down to the bottom line and find it as additional noi on our PNL. And so it's just inefficiency of operations, and again, quite common, given the mom and pop nature of this asset class. But it's very quickly becoming consolidated. Now it looks very different today than what it looked like as far as the ownership groups. When I go to an industry event 10 years ago, those other guys like us, and then a lot of mom and pops. Now it's, you know, the likes of reps from Blackstone and Carlisle group and and got lots of other institutional groups that are showing up there. So just it's very different world, and probably more akin to that of what the apartment sector looks like, as far as ownership groups and the consolidation that's happening.    Keith Weinhold  23:52   You're feeling more of that competition. Kevin and I are going to come back and talk about another, I suppose, real estate investment that has something to do with wheels, and that is investing in parking lots. I'm your host, Keith Weinhold   Keith Weinhold  24:07   if you're scrolling for quality real estate and finance info today, yeah, it can be a mess. You hit paywalls, pop ups, push alerts, Cookie banners. It's like the internet is playing defense against you. Not so fun. That's why it matters to get clean, free content that actually adds no hype value to your life. This is the golden age of quality email newsletters, and I write every word of ours myself. It's got a dash of humor. It's direct, and it gets to the point because even the word abbreviation is too long. 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While it's on your mind, start at Ridge lending group.com that's Ridge lending group.com.   Ted Sutton  25:51   Hey, it's corporate directs Ted Sutton. Listen to get rich education with Keith Weinhold, and don't quit your Daydream.   Keith Weinhold  25:59   welcome back to get rich education. We're talking about two real estate investment niches with Kevin bump today, an expert in both mobile home park investing and in parking lot assets. And Kevin, I got to tell you, I am more skeptical about parking lot investing than I am about mobile home park investing, but you can probably help me with this. I think we know that. I mean, gosh, just historically, ever since Henry Ford did his thing. I mean, mass transit adoption is really slow in most US cities. But anymore, one needs to wonder, okay, can autonomous cars disrupt the parking model? A Robo taxi can just constantly stay on the road, dropping off and picking up passengers where, you know, some people foresee a day in the not too distant future that people won't even need to own cars. They'll sort of have a subscription to a car service, but now this is where your expertise is. So I'm sure you thought above and beyond that. So what are your thoughts there, just for the need for parking spaces?    Kevin Bupp  27:11   You make a valid point. I think the adoption of that, it's, I think it will be very different from market to market, say, the city, whereas, if you want to maybe look at one area. We have a parking garage today in downtown Phoenix, Arizona. Phoenix is very much a driving city. It's parsed out very far the public transit. It's not great there. And again, it's just it's a wider state, whereas, if you compare it to like a San Francisco, the adoption of Robo vehicles and robotaxis and things like that autonomous vehicles is much, much faster than that of a of a phoenix. But also San Francisco is much a much more consolidated marketplace as far as the urban core. And so for that reason, you know, we look at parking, it's got a there's a couple things also that feed into that. So I want to back up a little bit. One of the major changes that has been really playing out over the past 15 years within the parking sector is that building departments within now, I think it's over 100 cities across the country. Denver just announced last week that they're also adopting this policy. And that policy is that historically, if you were Keith, you're going to go on, hey, I want to build this in downtown. I want to go build this apartment complex, condo complex, mixed use property, whatever it might be. Historically, they would have required you, whether you wanted to or not. They would have made you put in a certain amount of parking per 1000 square feet, every municipality would have a formula. And what, what a lot of these cities realized a couple decades ago is that, based on their, you know, antiquated formulas, they had a surplus of parking available on a lot of these downtown areas. You know, it wasn't being used. And given the developer an opportunity and the choice to say, Hey, do I want to build 20 more parking spaces that aren't going to get used? Or I want to build want to build 10 more apartment units, they're going to choose the apartment units. And so the parking mem requirements have been taken away, have been eliminated in a lot of cities over the last decade plus. And so that's created a shrinking supply of parking because now when developers build something, they're building only as much as they need, sometimes not even as much as much as they really need, because then they can still rely upon other ancillary parking structures within the immediate marketplace. And so, so there's a shrinking supply of parking. And every city that we own in today there's a massive shrinking supply of parking. So that's big piece of it that we know that inevitably, if we get the location right, an area where literally, you wouldn't be able to afford, based on the cost of construction and the cost of lands, they wouldn't be able to afford even building new parking structure, if you so chose to. And now that there's also a shrinking supply, diminishing supply, of this parking that we can be comfortable in our demand for our product, and so to the point of like autonomous vehicles and things of that nature, I do think there will be a time. I don't know how long that time is. I do think that there will be a time where we'll see some sort of impact. I don't know what that is. And so how we underwrite deals is we feel very confident over the next 10 years. We have to have a absolute confidence level over the next 10 years that there's going to be continual demand based on the various factors within this marketplace, the demand drivers that are servicing that garage, like, who's parking there, why they're parking there. But second to that, when we. Buy something. We need to have the air rights. We know that there inevitably will be a higher and better use. So Location, location, location, it's got to make sense today as parking. We got the underwriting has to stand on its own as parking, and we have to have a comfort level that 10 years, there will be sufficient demand throughout the duration of the next decade, in the event things start changing down the road, we know that, literally, the lowest use that it could ever have is its present use, which is parking because it's just a concrete structure, sometimes just an asphalt parking lot, to where, once you go vertical, that's where you're going to be able to unlock a lot of additional potential. And so we don't underwrite the future. We look at that as icing on the cake. But we know, based on the the location, the proximity to, you know what else is happening in that marketplace, that location will be in demand, not just today, but many decades to come. So I'll stop there and see if you have any clarifying questions.   Keith Weinhold  30:51   I think about how for the parking lot investor, Jamie Dimon has been really good for you. He is so hard on the return to Office. Mandate?   Kevin Bupp  31:01   Yeah, I'd say one thing that's important to make note is, I don't know what the future holds for office I tend to make the argument that wherever picking office building in a marketplace, wherever they're at with occupancy today, I think it's probably as good as it's going to get. We don't have to go down that rabbit hole. But I just I feel like it's been long enough since covid. And don't get wrong, there's gonna be a few companies that are going to be pressed that are going to be pressing, you know, in a big way, to get people back, but I think 80% of them that we're going to go back are already there. And so any parking asset that we look at, if it's got more than 10 or 15% as far as relationship with an office building or multiple office buildings in immediate vicinity, then we typically pass on it. And on top of that, it's got to have a variety of demand drivers. So it just can't be supportive of one or two different demand drivers. We have have at least five. And so it can be a courthouse, municipal buildings, sports arenas. It's got to be a 24/7 city where there's something happening, 24 hours a day, seven days a week, hotel, valet, restaurants, retail, things like that. And office has to be a very minimal part of that makeup, or else we just move on, because I don't know how to fix it. How to fix that problem yet. I don't know what's going to you know what the future holds for your traditional office towers, especially the ones that are, you know, 50, 60% vacant at the present time? Yeah, that's interesting, because when you look at a parking lot and you're evaluating its potential and its current use, yeah, you're basically thinking about, what is that tenant mix. You don't want 100% of it to be for one office building. You would probably want a number of uses. That's correct. Yeah, absolutely. Again, like I said, Five is our minimum. I mean, the more the merrier. And I'd say another big piece of it, if we had to look at the different demand drivers and put a value or a hierarchy of what we feel, what are the highest priority demand drivers, transient is the best. I want to know that the folks that are coming there, there's enough attractions in immediate vicinity, and we need to know what those attractions are, and better understand those attractions. But there's a variety of attractions in the immediate vicinity to where it's going to continually attract transient parking. So it's not just it's not a reliance upon one thing. And so, for example, we just closed on a garage in historic Philadelphia, and so it's a block away from Liberty Bell, two blocks from Independence Hall, any of other museums. I mean, like it's it is we talk about location, location, location. It's there that part of Philadelphia has been in demand by tourism for hundreds of years, and I don't foresee that that changing anytime soon. And so 70% of the makeup of the traffic in that garage is made up of transient traffic, so folks that are visiting the various attractions and immediate vicinity. So even if one of those attractions went away, which most of them are historical, they're not going to go away. If one or two did, it still wouldn't have that significant of an impact on the parking demand.    Keith Weinhold  33:36   That's interesting. Okay, a transient customer, not one that's showing up and parking there every day to go to work. And yes, the Liberty Bell, Independence Hall, there's going to be a long term demand to see those sorts of things in person. So that's an interesting way to think about that. And Kevin, while we've been talking about parking, at least in my mind's eye, a lot of times, I've just been thinking about one paved at grade parking area, but we're talking about parking garages as well. Or what are some of the trade offs there between parking garages and an at grade parking lot?    Kevin Bupp  34:08   Yeah, I mean, at grade parking lot is, can't get any simpler than that. I mean, typically they're asphalt or sometimes just crushed gravel, but that's it. So as far as future capex requirements, there's not many, right? It's very, very minimal. Whereas a parking garage, especially if it's in a colder environment, where there's snow and you've got salt on the road, salt that's making its way up the concrete, seeping into the cracks, you've got structural rebar issues to worry about, things of that nature. So weather can take a major toll on parking structures if they're not maintained well. Whereas you know the worst that could happen the same weather, you know, the weather takes the same toll on these asphalt parking lots, but it really only equates to maybe a pothole that you have to fill in, and a parking structure could be deteriorated to the point of no return if it's been neglected long enough to where it might be unsafe, structurally where you know now you're you're getting condemned or shut down. So big considerations there, it's interesting. We Own, the one we own in Phoenix, the Phoenix, it's a desert. It's a desert climate. They get very little moisture. And that was that parking garage was built in the 60s, so very long time ago. It's the oldest thing we have in our portfolio, but it better condition has been preserved better than that of of a recent garage we purchased that was built in 1990 that's all the environment that's in. You know, there's really not much that can deteriorate concrete once in the desert.    Keith Weinhold  35:22   Was there any last thing on parking lot investing like something that gets an investor really interested in this asset class? What's really compelling and profitable about it?   Kevin Bupp  35:33    It's very technology driven business, and what we have found is a lot of these parking assets, of either they're owned by, you know, an individual investor, or if they happen to be owned by an institution, they've never been viewed as the primary investment vehicle. A lot of institutions that own parking garages, they happen to own them by default, because maybe they bought the two office towers years back, and it just happened to come with parking right? And so a lot of times, they've been somewhat neglected, like the PnL has been neglected. They haven't found ways to really extract all the value out of these parking facilities. And so very commonly, we'll go in and we'll find that the technology that's in place is 10 years old. And think about what a computer 10 years ago look like, right? Like it's you're not catching all the license plates. You're not able to log in and adjust pricing in a dynamic manner based on supply, demand factors. And so we can simply go in and just create a more efficient pricing model and find sometimes, you know, 10 15% of additional revenue just from doing those simple things, like literally a few $100,000 worth of upgrades and technology, we can add millions of dollars of value. There's other factors, you know, just simple things folks want to park in a not just clean and safe, but well lit. You know, they want to feel safe in lighting. And we'll find parking facilities that still have old halogen lights. Half of them are burnt out. If you start serving people, they're actually not parking there in the evenings. They're finding somewhere else to go because they don't feel safe. And so just going in and doing a revamp, you know, an upfit with LED lights, making it nice and bright, bright and clean and letting everyone feel safe, we'll find a instant increase in demand and Parkers in the later evening hours. So I mean just little simple operational tweaks that we can make that just have simply been overlooked for many, many years by the prior ownership groups.    Keith Weinhold  37:15   That's really interesting, that oftentimes the owner of a parking lot owns that parking lot as an afterthought, because they were in it to purchase the building that accompanies the parking lot. So it would make sense that when you focus on that parking lot, you could really add value and profitability to that lot. Well, Kevin, these have been interesting chats between mobile home park investing and parking lot assets. I think that the commonality here is that you the investor, are just owning a lot, and therefore the maintenance and hassles with these things are really low. This gives our audience an awful lot to think about. So Kevin, are there any last thoughts that you have about this space overall, and then please let us know how our audience can learn more.    Kevin Bupp  38:02   No additional thoughts. I don't believe I'd say that if you have an interest, if we've piqued your interest at all, we've written a number of white papers on both asset classes, both parking as well as mobile home parks. You can download all that for free on our website. Invest with sunrise.com We've got a number of other case studies on our website. We're pretty transparent. Well, what we buy, what we've owned, what we've exited out of. We'll go as far as providing appraisal reports and third parties and things like that on our website. So if you just want to get a sense of not just who we are, what we do, but just have a better understanding of the investment thesis behind parking and manufactured housing, there's tons of resources that you can download from the website.    Keith Weinhold  38:37   Well, that's a great way to learn more about Kevin, what he does, and then maybe even invest alongside him. Well, Kevin, it's been valuable and eye opening. It's been great to have you back on the show.    Kevin Bupp  38:46   Yeah, thanks for having me, Keith. Been a lot of fun, my friend. Good seeing you again.   Keith Weinhold  38:57   Yeah? Good stuff from Kevin there. The MHP space becoming more consolidated and corporatized too. You know, single family rentals are different from mobile home parks in that way. I mean, 90% of single family rentals are owned by small mom and pops, which means those people that own between just one and five properties, Kevin used the term loss to lease a few times. That phrase loss to lease being a real estate education show what that term means is really a lot like how it sounds. It is the potential income that a property owner misses out on because the actual rent collected is less than the current market rent. That's what loss to lease means. Though, I like the long term future of mobile home parks more than parking deals. You know, Kevin did, though, have some great answers for why he still likes parking. He focuses on a 10 year horizon. He. Looks for at least five use types for the parking. And then another great point is that in a lot of cases, the land that the parking occupies is its lowest use. So therefore, when they sell the parking area, they can get some nice exit income. That makes a lot of sense. And being two native Pennsylvanians like we are, I am familiar with that part of Philly that he's talking about. In fact, what's funny is that, in producing this show today, I guess cookies are doing their thing. This parking lot deal in Philly just appeared in my Instagram feed next week on the show, it'll be back to no guest. It's going to be all me, and you're going to hear some things that you wouldn't expect to hear Until then, I'm your host, Keith Weinhold, don't quit your Daydream.   Dolf Deroos  40:51   Nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of get rich Education LLC, exclusively.   Unknown Speaker  41:19   The preceding program was brought to you by your home for wealth, building get richeducation.com

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Keith Weinhold, talking about real estate versus stocks, how housing has been in a recession that could now be thawing. Then why the war on the young and the vanishing middle class threatens to get even worse today on get rich Education.    Keith Weinhold  0:19   You It's crazy that most people think they're playing it safe with their liquid money when they're actually losing savings accounts and bonds don't keep up when true inflation can eat six to 7% of your wealth. Every single year, I invest my liquidity with FFI freedom family investments and their flagship program with fixed 10 to 12% returns that have been predictable and paid quarterly. There's real world security. It's backed by needs based real estate like affordable housing, Senior Living and healthcare. Ask about the freedom flagship program when you speak to a freedom coach there. And here's what's cool. That's just one part of FF eyes family of products. They include workshops and special webinars, educational seminars designed to educate before you invest start with as little as 25k and finally, get your money working as hard as you do. It's easy to get started. Just grab your phone and text family. 266866, text the word family. 266866, that's family. 266866,   Corey Coates  1:37   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  1:47   Welcome to GRE from Rocky Mount North Carolina to Mount Shasta, California and across 188 nations worldwide. I'm your host, Keith Weinhold, and you are inside for another wealth building week of get rich education. A lot of people have been building wealth lately. Do you even understand all the markets that are either at or near all time highs, real estate, stocks, gold, all recently hit those levels, also nested home equity positions of American property owners are at all time highs. Silver is also near an all time high, and so are FICO credit scores. All this means that the haves are in really good shape, and the have nots aren't more on that later. Let's then you and I talk about real estate versus stocks. I've invested in both for decades, and it's not something that I do on the side. This is the core of what I do and talk about with you every week. And I've never felt more inclined toward investing in real estate ever the resilience of residential real estate, a major reason is that I've always found real estate investing easier to understand than the s and p5 100, and it comes down to the mechanics of each one in The stock market, a company can be well run, it can be profitable, and it can even be growing, yet its stock price might fall anyway. Why? Because expectations weren't met for a quarterly earnings report, or investor sentiment just happened to shift for a while, people just tended to focus on the bad stuff instead of the good stuff, even though it was always there, and that's why the stock price went down. So what makes a stock move more often than not, is kind of laughable. It isn't a word sentiment, emotions. It's how investors collectively feel about a stock and that can change on a dime. One quarter's earnings miss an interest rate hike, geopolitical news or even a single social media comment from a CEO that can move billions of dollars of market value in an instant real estate, on the other hand, that strips away a lot of that noise and that ability for other people's emotions to ruin the price of your apartment building that cannot happen at its core, the value of a property is tied to its income stream and the market that It sits in, that makes it far more direct and way more controllable. If I buy a property, I can see the levers in front of me and ask my property manager to push or pull them or even do it myself. For example, I just asked them to replace flooring in three of my apartment units. With pricier luxury vinyl plank rather than new carpet, and that's because I plan to hold that building for another five years or more. I'll attract a better quality tenant that can afford to pay me more rent. So I know that if I improve operations and increase occupancy, reduce expenses or reposition the asset down the road. I mean, that is directly going to increase net operating income, and that increase will directly affect my valuation. So there's a logic to this that's almost mechanical, and that is not to say that real estate is without nuance or risk. The risk lies in execution. You have to underwrite carefully. Is the location of your property sustainable long term? Are the demographics supportive of Lent growth? What capital improvements are truly lucrative to you and provide the tenants with value, and what kind of improvements are only cosmetic? So real estate isn't just tangible, it's also something that you can interact with. You can walk a property, you can even speak to tenants, study the neighborhood and know exactly what you're dealing with. It's not a ticker symbol reacting to opaque forces that you'll never see or control, and for me, that tactile nature creates clarity. When you buy the right property in the right market with the right strategy, then the path forward is not mysterious. It isn't whimsical, it's deliberate. Real Estate is easier to understand than the S p5, 100. And that also doesn't mean that real estate is simple, because there is that due diligence and strategy, but it's the cause and effect relationship between what you do and the outcome that you get that's far more direct with stocks. You can be completely right about the fundamentals. I mean, you can nail it. You can Bullseye that stock target, and after all that, yet still lose with real estate. If you execute well, the fundamentals eventually do show up in the returns and see because of that direct cause and effect relationship, you can improve yourself as a real estate investor faster than a stock investor can, and that's because you can learn about how your upgrade drove your properties, noi, that information, that feedback that you got, that's something that you can either replicate again or improve upon in your own investor career. So between real estate and stocks, execution is the real differentiator, and control is a key one as well. To me, that sweet spot is control that I have. But through a property manager that way, control doesn't mean that you're losing your quality of life, your standard of living. Now, some people, they do, have the right handyman skills to maintain the property and the right people skills to maintain the tenants. So self managing it can work for just a few people. I sure don't have the handyman skills myself. Sheesh, if I even try to hang a picture on a wall, there's a 50% chance that it's going to end in a drywall patch job. When you can see the cause and effect between your decisions and the property's performance, it creates that level of control that stocks and bonds just don't offer. And I'm also being somewhat kind to stocks by discussing a benchmark like the s, p5, 100, even harder to control and understand are the Wall Street derivatives and financial mutations that the people invested in them don't even understand. Unlike stocks, you own, the levers you own, the operations, the expenses and the occupancy, both have risks, but real estate's risks are more perceptible, more knowable. You won't have to cringe when a company's CEO posts a tweet that's either pro Israel or pro Gaza. Billions of market cap is wiped out, and your investment goes down 12% in one hour. This is why we talk about real estate on the show. There is less speculation and conjecture. It is concrete stuff, and that's all besides how real estate pays you five ways at the same time, as if that wasn't enough.    Keith Weinhold  9:38   Now, when we talk about real estate investing in this decade, do you realize that we have been in a housing recession for two years? A recession in real estate? I mean, it might not feel like it with those home prices at erstwhile mentioned all time highs. We don't need to have falling prices to have a recession. Investors are obviously. Making money in this housing recession. The recession I'm talking about is the slowdown in housing activity stemming from less affordability, lower sales volume and less available inventory. But we do now have signs that we are breaking out of these housing doldrums. As far as affordability, national home prices are staying firm. But what's helping there is that mortgage rates have fallen, and we've also had wages that are rising faster than rents and wages that are rising faster than mortgage payments. In fact, wages have been rising faster than both of those for most of the last year now, and that's sourced by Freddie Mac Federal Reserve stats and rental listings on Redfin. Yes, year over year, American wages are up 4.1% rents are up 2.6% and mortgage payments are basically unchanged over the past year, up just two tenths of 1% and of course, these facts, combined with lower mortgage rates, all supports more real estate price growth. Now to kick off the show, I mentioned how real estate stocks and gold all recently hit all time highs. Well, that's denominated in perpetually based dollars, of course. However, one thing that affects you that certainly has not reached all time highs is the level of available homes, the number of homes for sale, that inventory is up off the recent bottom in 2022 yet it is still below pre pandemic levels. We have had quite a recovery here. National active listings definitely on the rise. They are up 21% between today and this time last year. Well, that means that buyers have gained leverage, mostly across the south, where lots of new building has occurred, and some areas of the West as well. Yet today, we are still, overall here 11% below 2019 inventory level. So nationally, we're basically still 11% below pre pandemic housing inventory levels. And in the Midwest and Northeast, the cupboard looks even more bare than that, since new construction totally hasn't kept up there, we will see what happens. But with the recent drop in mortgage rates, buyers might take more of that available inventory off the shelf. But here's the twist that I've heard practically no one else talk about no media source, no one in conversation. Nobody. It is the paucity of available starter homes. It's the entry level home segment that has the great scarcity, and it's these low cost properties that are the ones that make the best rental properties. Their paucity is jaw dropping, as sourced by the Census Bureau and Freddie Mac starter home construction in the US. I mean, it is just fallen precipitously. Are you even aware of the trend? All right, defined as a home of 1400 square feet or less, all right, that's what we're calling a starter home. Their share of new construction that was 40% back in 1982 Yeah, 40% of new built homes were starter homes. Then by the year 2000 it fell to just a 14% share, and today, only 9% of new built homes are starter homes, fewer than one in 10, and yet, that's exactly what America needs more of. So although overall housing inventory is still low, it's that entry level segment that is really chronically underserved, and that won't change anytime soon, we remain mired in a starter home slump because builders find it more profitable to build higher end homes and luxury homes. Yet for anyone that owns this workforce rental property, which is the same thing we've been focused on doing here on this show, from day one, you are sitting in an asset class that's going to remain stubbornly in demand over the long term. And when it comes to starter homes, the ones Investors love most, they are more scarce than bipartisan agreement in Congress, really. That is the takeaway here.    Keith Weinhold  14:39   So last week, I had an interesting in person meet up at a coffee shop with a 19 year old college student because he's a real estate enthusiast, rapping Gen Z there. He's an athlete too, an 800 meter runner. Well, his dad read Rich Dad, Poor Dad, and his dad has 60 rental properties. Where they're from in Wisconsin, and maybe you're wondering, oh, come on, what could I learn from this 19 year old? I don't think that way. Now, I told him about some foundational GRE principles like financially free, beats debt free and things like that. It was also insightful to get his take on how he sees the world, and for me to learn what his professors are teaching him about real estate investing in his classes, he talked about how his professors show them, for example, what affects apartment cap rates. Also about how, whenever they run the numbers on a property, it always works out better to get the debt, get that mortgage, and how that leverage increases total rates of return. I was really happy that he's learning that over there at the university, but I was really impressed how at age 19, he's responsible and understands so much about society, politics, investing, athletics and even diet. I mean, this guy is rare, talking about his preference for avoiding food cooked in seed oils and choosing beef tallow instead. He also lamented on how Generation Z is so screwed up, saying that no one reads, no one's having kids, no one can buy a home, no one's going to be able to buy a home, and that people his age are so used to looking at screens that they're anxious about in person interactions, even in person, food ordering from a waiter at a restaurant gives them anxiety. He and I are planning to go running together next week. We'll see how that goes. As a college 800 meter runner, he's going to have the speed advantage on me, but we're running up a steep, 40 minute long trail where I've got a shot at an endurance advantage. So it was rather interesting to get his take and see what college professors are teaching on real estate. I mean, this generation that's coming of age now, Gen Z is the worst generation since George Washington to have it worse off than their parents. I'm going to talk about that today, shortly. next week, on the show here, I plan to help you learn about what's going on with some real estate niches and what their future looks to be over the next 10 to 20 years, including mobile home park real estate and parking lot real estate, one of these asset classes I really don't like the future of That's all next week on the future of some certain real estate niches. Straight ahead today, I want to tell you about mortgage rates in a way that you've never thought about before and more about the war on the young and the vanishing middle class. I'm Keith Weinhold. There will only ever be one. Get rich education podcast episode 573, and you are listening to it.    Keith Weinhold  17:53   If you're scrolling for quality real estate and finance info today, yeah, it can be a mess. You hit paywalls, pop ups, push alerts, Cookie banners. It's like the internet is playing defense against you. Not so fun. That's why it matters to get clean, free content that actually adds no hype value to your life. This is the golden age of quality email newsletters, and I write every word of ours myself. It's got a dash of humor. It's direct, and it gets to the point, because even the word abbreviation is too long, my letter takes less than three minutes to read, and it leaves you feeling sharp. And in the know about real estate investing, this is paradigm shifting material, and when you start the letter, you'll also get my one hour fast real estate video course, completely free as well. It's called the Don't quit your Daydream letter. It wires your mind for wealth, and it couldn't be simpler to get visit gre letter.com while it's fresh in your head, take a moment to do it now at gre letter.com Visit gre letter.com    Keith Weinhold  19:06   the same place where I get my own mortgage loans is where you can get yours. Ridge lending group and MLS, 42056, they provided our listeners with more loans than anyone because they specialize in income properties. They help you build a long term plan for growing your real estate empire with leverage. Start your prequel and even chat with President Chale Ridge personally. While it's on your mind, start at Ridge lendinggroup.com that's Ridge lendinggroup.com   Todd Drowlette  19:38   this is the star of the A E show the real estate commission, I'd roll that. Listen to get rich education with my friend Keith Weinhold, and don't quit your Daydream.   Speaker 1  19:49   Welcome back to. Get Rich Education. I'm your host. Keith Weinhold, as a reminder that show the real estate commission starring our friend Todd Drolet, who is a guest on the show here with us at the beginning of this month, it starts October 10, on A and E, that's that reality based commercial real estate show. Late last year, the Fed lowered interest rates, and they're doing the same thing again this year, when interest rates rise and fall, think of it like a wall that's being raised and lowered. Cutting rates is like lowering the height of a wall or a dam. That's because it allows for the free flow of capital. Savings rate accounts. Well, since they'll now pay at a lower rate with this rate cut, they're more likely to get shifted out and invested somewhere and flow into something else, driving up that other asset's value. Mortgages are more likely to originate because you pay less interest. Lowering rates lowers the impediment to the flow of money. It eases that flow. Oppositely, raising rates is like increasing the height of a wall or a dam, because if your savings account rate goes from 4% up to 5% oh well, you more likely to keep it parked there a higher wall or dam around your money, and raising rates makes your mortgage costs higher, so you're more likely to stay put and not move money around, constrained by the higher wall, that's how interest rates are like walls and lower walls also increase inflation, since they increase The flow of money, and hence the demand for goods and services. Well, then why did the Fed cut rates, lowering the wall opening the door for inflation this last time? Well, I think you know that was due to the evidence of a sputtering job market. You know that, if you follow this stuff, a slowing job market slows the flow of money, hence why they lowered the wall to increase the flow. Now this might translate to even lower mortgage rates. It does have that loose correlation anyway, and this should lift the housing market. But here's the real problem. Inflation is higher than the Fed wants already, and it's still rising, and they cut rates, making it more likely to rise further. This is like pouring gasoline on a campfire while yelling, don't worry. I got this sure the fire burns brighter, all right, but you might lose your eyebrows. The risk here is that these rate cuts will make inflation spike, since lower rates makes everyone less likely to save and more likely to borrow and spend, this pushes up prices even farther and faster, and this is the Fed's dangerous game. This is the crux about why the Fed is between a rock and a hard place. Ideally, the Fed only cuts of inflation is at or below their 2% target, but understand it hasn't even been there one time in nearly five years. Now, year over year, inflation was 2.7% last month and rose to 2.9% this month. The price of almost everything is up even faster than it usually goes up, beef, housing, haircuts, flamin hot, Cheetos, everything as we know this inflation that's now positioned to pick up again. However, for us, this is the long term engine that makes our real estate profitable. It makes it easier to raise rents, all while your principal and interest payment stays fixed. Inflation cannot touch that like a mosquito buzzing against a window, and let's be real, official inflation numbers are like Instagram filters. They are shaved down, touched up and airbrushed. The government massages them with tricks like hedonics, the wave of inflation that peaked at 9% in 2022 that has already widened the distance between the haves and the have nots, like the Grand Canyon, eviscerating so much of the middle class. And now the powers that be are setting up a scenario for another wave of elevated, long term inflation. This could get dire. Look like I was saying earlier the generation coming of age today is the first one since George Washington to have it worse off than their parents. Do You understand the profundity of this? They had the lowest home ownership rate, and they're the poorest, often leaving them directionless, anxious, depressed, drug addicted and even suicidal for. The first time in US history, Americans are on track to be poorer, sicker and lonelier than their parents. They will make even less than their parents did at the same age, and that's despite having a college degree. Inflation is a big reason for that, and that's what I help you solve here. I can't really help you with the depression stuff. That's not really my role with what I do here in the show. But inflation, in getting behind is one contributor to all these things. Understand, in 1989 those under age 40, they held 12% of household wealth. Today it's just 7% older Americans got rich, and they basically locked the gates behind them. Those over age 70 only held 19% of US wealth in 1989 now it's 30% Harvard's endowment has grown 500% since 1980 that's adjusting for inflation, but yet their class size hasn't grown. I mean, this is just more evidence that old money wins and young people are losing and cannot get ahead in 2019 the federal government spent eight times more per capita on seniors than they did kids. We all know that Gen Z is delaying marriage, home ownership and family formation in 1993 60% of 30 to 34 year olds had at least one child. Today, it's gone all the way down to 27% in about 30 years, that's fallen from 60% down to 27% this is not a resource problem. It's a values problem and an inflation problem, and also the tax code, values owning assets which older people have over labor, which younger people have. This is the crux of the war on the young and the war on those that don't own assets. You've got to wonder, is it even fixable? Some of it is, but no one really wants to fix inflation, and now they're lowering rates to open the door for even more of that widening that canyon, yes, the wave of inflation that started four to five years ago that broke down the middle class, and now it's set up to widen even more. I want to tell you what you can do about that shortly. But first, have you ever wondered, why do we even stratify upper, middle and lower class based on somebody's income? Why the income criterion, if you say that someone's upper class, everyone knows what that means. It means that you have a lot of wealth or income. But why is that the basis? Why do we classify it based on income? Well, it really started forming during the Industrial Revolution of the 1700s and 1800s that began in Great Britain. Before that, class distinctions were usually based on land ownership or nobility or occupation, for example, aristocrats versus peasants. But as industrial capitalism spread out of the UK, wages became the dominant way that people made a living. So tracking income, it sort of became this natural way to map out class. And then this notion spread in the 1800s and 1900s that was propelled through both economics and social science. You had thinkers like Karl Marx and Max Weber that were deeply concerned with class. Marx emphasized ownership of the means of production. You've probably heard that before, capitalists versus workers. But as societies modernized people in the world of both Economics and Psychology, they agreed that income was an easier dividing line than ownership alone. And then, starting last century, in the US, the 1900s income statistics, they became rather central in all of these policies that we make, like our tax system and poverty thresholds and qualifying for housing programs and even welfare benefits. See, they all rely on income bands. And over time, this normalized in our vernacular, these strata of upper middle and lower class sort of this income based shorthand that we use, throwing these terms around. So whether we like it or not, classes are based on your income level, and that's how it came into being. Well, with. A quick history lesson with the eroding of the middle class, with the war on the young. What can you actually do to make sure that you find yourself on the upper income side of it without falling to the lower side the lower class? Well, we know who the future financial losers are going to be. It is anyone not owning assets, and it's also savers clutching their dollars as those dollars quietly melt like ice cubes in July, right in their hand. Those are who the financial losers are going to be. Who are the winners going to be? It is asset owners riding the inflation wave, and the winners are also debtors who get to pay back tomorrow with cheaper dollars today, especially with that debt that you have outsourced to tenants. Here's the big takeaway, if you did not grab enough real assets during the last wave of inflation don't get left behind this time, because the longer you wait, the harder it is to jump aboard this moving train that keeps getting momentum and moving faster. The bottom line here is that at GRE we advocate for simply doing it all at once. Use debt to own real assets while inflation pushes up your rents. That's it, right. There it is. That's really the most concise way to orate the formula. Look in your mortgage loan documents. It does not say that you have to repay the mortgage loan in dollars or their equivalent. It only says you have to repay in dollars. That's your advantage. As dollars keep trending closer to worthless. To review what you've learned so far today, real estate is easier to understand and has more control than stocks. Housing has been in a recession, but there's more evidence that it is thawing, and a setup for more inflation has America poised to exacerbate the war on the young and widen the canyon between the haves and the have nots, and it threatens to get even wider as the middle class keeps vanishing and struggling.   Keith Weinhold  32:23   Now, if you like good free information, like with what I've been sharing with you today, and you find yourself doing a bit too much scrolling for quality written real estate and finance info. I mean, yeah, it can be a mess. It can be tough. If you want to get the good stuff, you hit paywalls and pop ups, and you get these push alerts and cookie banners. It's a little annoying. It's like the internet is playing defense against you. Not so fun, and that's why it matters to get good, clean, free content that actually adds no hype value to your life. This is the golden age of quality email newsletters. I've got one. I write every word of ours myself, and it's got a dash of humor, yet it's direct. And it gets to the point because, as I like to say, even the word abbreviation is too long. My letter takes less than three minutes to read, and it leaves you feeling sharp and in the know about real estate investing, this is the good stuff, the paradigm shifting material, the life changing material, you can get my letter free at gre letter.com Where else would you get the GRE letter? Greletter.com and along with the letter, you'll also get my one hour fast real estate video. Course, it's completely free as well, and it's not to try to upsell you to some paid course, there is no paid course, there's just nothing for sale, no strings attached, free value. It's called the Don't quit your Daydream letter. It wires your mind for wealth, and it couldn't be simpler to get as you know, I often like to part ways with something actionable for you, visit gre letter.com while it's fresh in your head, take a moment to do it now one last time it's gre letter.com until next week. I'm your host. Keith Weinhold, don't quit your Daydream.   Speaker 2  34:24   nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of get rich Education LLC, exclusively.   Keith Weinhold  34:52   The preceding program was brought to you by your home for wealth building. Get richeducation.com