Podcasts about qrps

You make a good salary, and you're putting away savings that barely keeps up with the cost of living. You need a professional, trustworthy team to build your passive income cash flow.In The Wealth Elevator: Real estate syndications, accredited investor banking, and tax strategies for first-gen millionaires, real estate investor and fund manager Lane Kawaoka shows you how to ascend the investment floors to financial freedom.Discover how to:● Take the elevator from rentals to syndications to private funds and more● Generate cashflow of $0 to $25,000 to $100,000 per month● Harness legal tax strategies to protect your wealth● Own your money with Accredited Investor Banking● Make the ideal connections for your Family Office● Build your legacy, as you reach net assets of $10 million and beyondUsing this proven system, investors typically reach financial freedom in four to seven years. The author Kawaoka, a multi-billionaire, gives you the elevator. It's so easy, it's almost boring. Hosted on Acast. See acast.com/privacy for more information.

Passive income through private money lending in real estate | How to save an AirBnB failureYou'll learn;

Mat and Mark outline common mistakes made in solo 401(k)s (aka, QRPs) when it comes to creation, documentation, contributions, handling of funds, and filings. They cover plan documents and update requirements (required every 6 years) as well as 5500-EZ solo 401(k) tax return filings. 

The Investor Relations Real Estate Podcast Episode 41 - When You Invest - The True Power Is The Compounding Host: Jonny Cattani Guest: Bernard Reisz Producer: April MunsonJonny Cattani is joined by Bernard Reisz to discuss: Real estate tax tools: SDIRA, QRP, 401k, 1031 Exchange, Cost SegregationUnderstanding where your money is really going Defining terminology Lead Strategist & Educator @ ReSure Financial, Delivering Investor Tax Tools and Transforming Financial ParadigmsBernard is CEO - Chief Education Officer - @ resurefinancial.com/& @ members.resurefinancial.com/ delivering self-directed investor tax and financial tools for alternative investing using Checkbook Control IRAs, QRPs, Solo 401(k)s, and 1031 Exchange services. ReSure also provides objective advisory services for QRP, SDIRA, UBIT, UBTI, UDFI, 1031, LLCs, entity structuring, financial products, tax strategy & planning, installment sales, financial advisory, estate planning, investing... all of these must be navigated expertly & integratively.Linked material referenced during the show: Book: Antifragile: Things That Gain From Disorder - Nassim Nicholas Talebhttps://www.amazon.com/Antifragile-Nassim-Nicholas-Taleb-audiobook/dp/B00A2ZIZYQ/ref=sr_1_1?crid=OFA63A1BGXO7&keywords=Saint+Nicholas+taleb+series&qid=1653339014&sprefix=saint+nicholas+taleb+series%2Caps%2C87&sr=8-1Connect with Bernard!As a guest on numerous financial, tax, real estate, and legal forums Bernard delivers straight-talk and unique insight. Many of these are accessible at: https://www.resurefinancial.com/checkbook-control-retirement-learning-center/self-directed-financial-podcasts/Website: https://members.resurefinancial.com/ Website: https://www.resurefinancial.com/ LinkedIn: https://www.linkedin.com/in/bernard-reisz-cpa/Connect with Jonny!Cattani Capital Group: https://cattanicapitalgroup.com/Invest with us: invest@cattanicapitalgroup.comLinkedIn: https://www.linkedin.com/in/jonathan-cattani-53159b179/Johnny's Instagram: https://www.instagram.com/jonnycattani/IRR Podcast Instagram: https://www.instagram.com/theirrpodcast/TikTok:https://www.tiktok.com/@jonnycattani?lang=enYouTube: https://www.youtube.com/channel/UCljEz4pq_paQ9keABhJzt0AFacebook: https://www.facebook.com/jonathan.cattani.1

In this episode of Estate Professionals Mastermind, financial mentor Damion Lupo joins Chad Corbett to discuss why an eQRP provides the strongest opportunity for leverage and diversification compared to other retirement vehicles like 401ks and IRAs. What is a Qualified Retirement Plan? In short, QRP is a type of pension plan that allows self-employed workers to plan for retirement and benefit from tax deferments. Qualified retirement plans can be used for real estate, as well as other asset classes that aren't an option for traditional retirement plans. To learn more about how QRPs work, how eQRP benefits compare to traditional investment vehicles, and how to set up an enhanced Qualified Retirement Plan to use in real estate investing, get the free book here: https://book.eqrp.co/gift-from-chad-corbett/Episode segments (Timestamps link to YouTube interview!)0:00 eQRP reviews: Chad Corbett2:05 Damion Lupo, author of the QRP Book6:32 Why you need to start planning your wealth strategy for financial independence8:21 QRP vs. Self-directed IRA (SDIRA) vs. Solo 401k12:13 How does the QRP work?18:46 eQRP benefits for real estate investing33:24 Who manages an eQRP?35:02 Get the eQRP book freeSales Bluebird for leaders and go-to-market teams at cyber security startupsTips, tricks, ideas and inspiration from legendary cyber security CEOs and CROsListen on: Apple Podcasts SpotifyPre-Roll Information: Join our Facebook Group: Estate Professionals MastermindCheck out ProbateMastery.com for the probate certification course and more content.

Bernard Reisz is our in-house wiz at using retirement accounts in syndications, funds, and other investments. His mission to you as an investor is to be EMPOWERED with clarity, certitude, & control.His team is not just selling paper and contracts, but have the expertise and knowledge to ensure full complianceEmailbernard@resurefinancial.comHe has a fantastic educational platform as well,  see connection inks below.members.resurefinancial.com/  (Company Website)resurefinancial.com/  (Company Website)bbb.org/us/ny/new-york/profile/tax-consultant/resure-llc-0121-170719  (BBB A+ Profile & Reviews)From his Linked Profile:Are You a Real Estate Investor? Be EMPOWERED with clarity, certitude, & control. Join the ReSure Financial Investor Education Space for Next Level tax, legal & financial education: https://members.resurefinancial.com/For podcast episodes: https://www.resurefinancial.com/checkbook-control-retirement-learning-center/self-directed-financial-podcasts/My goal is to empower you to optimize your finances and investing through the strategic use of tax, legal, & financial tools.https://www.resurefinancial.com/self-directed-retirement-services/: Get direct control of tax-favored funds for real estate equity and debt opportunities using Checkbook Control IRAs, QRPs, Solo 401(k)shttps://www.resurefinancial.com/resure-1031-exchange-services/: Streamlined 1031 Qualified Intermediary Services, using smart tech & delivering expert personal assistanceAgentFinancial.com: Tax, entity, and financial services for real estate professionals, including 1031 & 453 advisory services, for real estate agents, real estate investors, and mortgage brokers. An integrated approach to tax and financial planning for real estate pros, focusing on their unique profiles and opportunities.Prior to founding ReSure, Bernard served as Director of CoMetrics Partners, managing an array of engagements involving financial consulting and due diligence. Bernard advised owners of closely-held middle-market companies on advanced tax mitigation strategies.As a guest on numerous financial, tax, real estate, and legal forums I deliver straight-talk and unique insight. Many of these are accessible at: https://www.resurefinancial.com/checkbook-control-retirement-learning-center/self-directed-financial-podcasts/Want to connect? https://members.resurefinancial.com/

In this episode, we sit down with the OJM Group from Cincinnati, Ohio, to discuss qualified retirement plans and how many dermatology practices could be saving money. 

Welcome back to The Real Estate Nerds Podcast! Lane Kawaoka knows the bandwagon of getting multiple houses to achieve the goal of passive income all too well. He bought eleven of them and realized there was an eviction or two--and at least three big catastrophes--happening every year, whether that was someone stealing an HVAC, major plumbing issues, or even the rain. Lane is a working engineer and remains in that industry by day. He made his real estate debut ten years ago, initially investing in single-family homes. Over eight years in that asset class, he got up to almost a dozen properties, then switched to syndication partnerships. Today, Lane is here to share the dirty laundry of his investing life and the worst deal that he has been through with our host, real estate attorney and fellow investor Scott Smith. Lane's Worst Deal: A Roth IRA Ponzi SchemeLane sits down with Scott to tell us about his background, transition into real estate, and the worst deal he made as he changed the direction of his real estate career.[1:00] Lane's first properties were out-of-state turnkeys. On his eleventh major property, he realized the major issues involved with each property were eating into his time, energy, and profit lines. He concluded the model that had worked for him for his first eight years was no longer scaleable.[2:30] Veteran investors advised Lane to join them in the world of syndication and partnerships, even saying they personally wished they'd stopped single-family investing years before they did.[3:30] 2011-2012 was the year Lane began investing as a Limited Partner. He had some money in a Roth IRA, a vehicle that was not yet familiar to him. He didn't know what to invest in and got some advice from a custodian, who referred him to an unethical outfit that was essentially running a Ponzi scheme: “They were buying up single-family homes, C and D class properties. The deal was I was going to put up all the money for the title to the property.” [4:30][5:30] Because Roth IRAs restricted Lane to investments without debt, he put $43,000 down. The company promised him a 9% fixed rate and to split the profits of the sale 50-50. Lane found out that the company was not reputable as he began doing internet research. Problems later surfaced with his ability to connect those checks. “I was naive and I didn't know anything. I didn't know what I didn't know.” [6:18][6:30] Getting a referral from an IRA Custodian was a bad idea, Lane now realizes. Those custodians are not investors: “I broke the cardinal rule of you don't work with people you don't know, like, or trust.” He now uses his network to verify leads ahead of entering into contracts. [8:30] For the first couple of years, things went fine. Lane got his checks regularly, and felt fairly secure as he held the property's title. Then he realized nobody was paying taxes on the property. A friend in a similar situation. He speculates that the Ponzi scheme imploded in terms of liquidity around the third year. He had the option to take legal action, but chose not to because he valued his time above that. Lane simply walked away.[10:00] Scott wonders if an extreme level of due diligence, such as checking the tax rolls, would have helped Lane avoid this situation. He prefers more transparent deals now and avoids IRAs and QRPs altogether: “I like single-asset LLC deals instead of blind pools.” [11:20] He believes people buy into the blind pools because of marketing angles: “Normally the unsophisticated investor goes into the blind pool because they buy into that. The more sophisticated investors want to know what the asset is.” Some underwrite it themselves, even.[12:20] Scott probes Lane's lack of confidence in Self-Directed IRAs/401(k)s. Lane asserts that the major draw--tax savings--isn't that great; “You're still going to pay taxes at some point. You're just kicking the can down the road.” He prefers paying taxes today, because he believes his taxable income is lower now than it will be in the future. He also compares the numbers to his preferred style of investment (LP Syndication), and feels you have less leverage with self-directed funds because of government restrictions.[13:30] Lane also feels IRA custodians push these accounts because they're the ones profiting from them. He advises new investors to remove money from these accounts slowly and strategically. The Takeaway: Avoid Scams by Building a High Quality NetworkThis one bad deal didn't scare Lane off from Limited Partnerships or syndication investing. He's going “all in” on this strategy now that he's remedied the main problem that contributed to his falling for the Ponzi scheme: a lack of a solid network.[14:30] Scott asks what Lane could have done to sniff out and avoid the Ponzi scheme. “You have to surround yourself with the right people. I didn't have the right people at that point...It's all your network.” [15:00] Scott shares that he was once initially skeptical of networking and felt he was wasting time. “Did you have that same experience of having to kiss a lot of toads before finding someone who could really help you?” Lane responds that he did. He's a type of investor that isn't common at local meet-ups--he had to find a more “target-rich” environment for network.[16:25] The two investors find that “pay to play” groups end up being higher value. Meet-ups are great for those who are new or into fix-and-flips, but passive investors may find more results (and fewer “toads”) at groups that require paid membership.[18:00] Lane offers ways to connect, pointing out: “I'm always looking to connect with other investors. I'm always hunting for that next deal.”

Welcome back to The Real Estate Nerds Podcast! Lane Kawaoka knows the bandwagon of getting multiple houses to achieve the goal of passive income all too well. He bought eleven of them and realized there was an eviction or two--and at least three big catastrophes--happening every year, whether that was someone stealing an HVAC, major plumbing issues, or even the rain. Lane is a working engineer and remains in that industry by day. He made his real estate debut ten years ago, initially investing in single-family homes. Over eight years in that asset class, he got up to almost a dozen properties, then switched to syndication partnerships. Today, Lane is here to share the dirty laundry of his investing life and the worst deal that he has been through with our host, real estate attorney and fellow investor Scott Smith. Lane's Worst Deal: A Roth IRA Ponzi SchemeLane sits down with Scott to tell us about his background, transition into real estate, and the worst deal he made as he changed the direction of his real estate career.[1:00] Lane's first properties were out-of-state turnkeys. On his eleventh major property, he realized the major issues involved with each property were eating into his time, energy, and profit lines. He concluded the model that had worked for him for his first eight years was no longer scaleable.[2:30] Veteran investors advised Lane to join them in the world of syndication and partnerships, even saying they personally wished they'd stopped single-family investing years before they did.[3:30] 2011-2012 was the year Lane began investing as a Limited Partner. He had some money in a Roth IRA, a vehicle that was not yet familiar to him. He didn't know what to invest in and got some advice from a custodian, who referred him to an unethical outfit that was essentially running a Ponzi scheme: “They were buying up single-family homes, C and D class properties. The deal was I was going to put up all the money for the title to the property.” [4:30][5:30] Because Roth IRAs restricted Lane to investments without debt, he put $43,000 down. The company promised him a 9% fixed rate and to split the profits of the sale 50-50. Lane found out that the company was not reputable as he began doing internet research. Problems later surfaced with his ability to connect those checks. “I was naive and I didn't know anything. I didn't know what I didn't know.” [6:18][6:30] Getting a referral from an IRA Custodian was a bad idea, Lane now realizes. Those custodians are not investors: “I broke the cardinal rule of you don't work with people you don't know, like, or trust.” He now uses his network to verify leads ahead of entering into contracts. [8:30] For the first couple of years, things went fine. Lane got his checks regularly, and felt fairly secure as he held the property's title. Then he realized nobody was paying taxes on the property. A friend in a similar situation. He speculates that the Ponzi scheme imploded in terms of liquidity around the third year. He had the option to take legal action, but chose not to because he valued his time above that. Lane simply walked away.[10:00] Scott wonders if an extreme level of due diligence, such as checking the tax rolls, would have helped Lane avoid this situation. He prefers more transparent deals now and avoids IRAs and QRPs altogether: “I like single-asset LLC deals instead of blind pools.” [11:20] He believes people buy into the blind pools because of marketing angles: “Normally the unsophisticated investor goes into the blind pool because they buy into that. The more sophisticated investors want to know what the asset is.” Some underwrite it themselves, even.[12:20] Scott probes Lane's lack of confidence in Self-Directed IRAs/401(k)s. Lane asserts that the major draw--tax savings--isn't that great; “You're still going to pay taxes at some point. You're just kicking the can down the road.” He prefers paying taxes today, because he believes his taxable income is lower now than it will be in the future. He also compares the numbers to his preferred style of investment (LP Syndication), and feels you have less leverage with self-directed funds because of government restrictions.[13:30] Lane also feels IRA custodians push these accounts because they're the ones profiting from them. He advises new investors to remove money from these accounts slowly and strategically. The Takeaway: Avoid Scams by Building a High Quality NetworkThis one bad deal didn't scare Lane off from Limited Partnerships or syndication investing. He's going “all in” on this strategy now that he's remedied the main problem that contributed to his falling for the Ponzi scheme: a lack of a solid network.[14:30] Scott asks what Lane could have done to sniff out and avoid the Ponzi scheme. “You have to surround yourself with the right people. I didn't have the right people at that point...It's all your network.” [15:00] Scott shares that he was once initially skeptical of networking and felt he was wasting time. “Did you have that same experience of having to kiss a lot of toads before finding someone who could really help you?” Lane responds that he did. He's a type of investor that isn't common at local meet-ups--he had to find a more “target-rich” environment for network.[16:25] The two investors find that “pay to play” groups end up being higher value. Meet-ups are great for those who are new or into fix-and-flips, but passive investors may find more results (and fewer “toads”) at groups that require paid membership.[18:00] Lane offers ways to connect, pointing out: “I'm always looking to connect with other investors. I'm always hunting for that next deal.”"We all know what people do with long leashes. They're going to hang themselves eventually."

Jason's Mom Takes His Advice... Finally! Her Portfolio Makeover & Optimizations. Jason's mom shares how she sold some of her old properties in California and bought new ones in Florida through 1031 exchanges, the numbers are simply amazing! QRP stands for Qualified Retirement Plan. A QRP, or Qualified Retirement Plan, is a retirement plan that is tax-favored under Section 401 of the Internal Revenue Code, also referred to as the Tax Code or the IRS Code. The title of the Section is: Qualified pension, profit-sharing, and stock bonus plans. Some of the most powerful tax strategies exist within this section of the tax code, which covers many types of tax-sheltered QRP plans. 401(k) plans, defined benefit plans, cash balance plans, profit-sharing plans and pension plans that meet the requirements of the tax code are all types of QRPs. ** LIVE ORLANDO CONFERENCE ** Join us for Empowered Investor LIVE: https://www.EmpoweredInvestor.com Free Mini-Book on Pandemic Investing: https://www.PandemicInvesting.com Jason's TV Clips: https://vimeo.com/549444172  Asset Protection, Tax Savings & Estate Planning: http://JasonHartman.com/Protect  What do Jason's clients say? http://JasonHartmanTestimonials.com Easily get up to $250,000 in funding for real estate, business or anything else  http://JasonHartman.com/Fund  Call our Investment Counselors at: 1-800-HARTMAN (US) or visit https://www.jasonhartman.com/ Guided Visualization for Investors: http://jasonhartman.com/visualization

In today's episode, Jason talks to Damian Lupo of eQRP.co and the benefits involving this strategy when planning for retirement. QRP stands for Qualified Retirement Plan. A QRP, or Qualified Retirement Plan, is a retirement plan that is tax-favored under Section 401 of the Internal Revenue Code, also referred to as the Tax Code or the IRS Code. The title of the Section is: Qualified pension, profit-sharing, and stock bonus plans. Some of the most powerful tax strategies exist within this section of the tax code, which covers many types of tax-sheltered QRP plans. 401(k) plans, defined benefit plans, cash balance plans, profit-sharing plans and pension plans that meet the requirements of the tax code are all types of QRPs. ** LIVE ORLANDO CONFERENCE ** Join us for Empowered Investor LIVE: https://www.EmpoweredInvestor.com Free Mini-Book on Pandemic Investing: https://www.PandemicInvesting.com Jason's TV Clips: https://vimeo.com/549444172  Asset Protection, Tax Savings & Estate Planning: http://JasonHartman.com/Protect  What do Jason's clients say? http://JasonHartmanTestimonials.com Easily get up to $250,000 in funding for real estate, business or anything else  http://JasonHartman.com/Fund  Call our Investment Counselors at: 1-800-HARTMAN (US) or visit https://www.jasonhartman.com/ Guided Visualization for Investors: http://jasonhartman.com/visualization

TranscriptNow I don't really watch much TV because I try to create more content for folks like you on this channel but lately I have been binge watching this Bling Empire on Netflix.Basically its a show about rich asians in LA - think Crazy Rich Asians reality tv showWhy would i be I watch this? Well I grew up frugal and I was just curious on what rich people do with their money. Best practices etc.I also tend to watch shows that have a finite endings there were just 6 episodes so I can get to something more productive. Movies... I love them cause they are done. Except marvel movies which there are like 30-40 of them but they are good so anyway2a) Stay till the end because I am going to be giving away free book on QRPs which is going to allow you to unlock your retirement funds to invest in hard assets such as real estate.1b) I'm going to show you the______ 2b) At the end we will be giving you access to the______ so you can ______Topic: Netflix's Bling Empire takeaways1) Best practices1a) Parties - net worth equals net worth - 1b) good food, paid venues and at home parties, birthday/baby parties1c) caviar - I have to try that - very different from my Ready made food from Don Quiote which you can watch a video about that in my channel4) There was a point in the show where a couple of the guys were tracking down the parent of another on of their friends and I think they need to go to Tennessee or something.4a) Freedom to go when ever they wanted - time freedom!4b) A couple times the use of private jets were shown. Jets are cool but on another level they are the only thing that can compress time. And TIME is our most important resource.CTAMID: a) Before I go on please do me a favor and like/comment/questionb) Help us work up the Youtube Algorithm to reach more people and grow our community by liking this video or even better commenting or asking questions which I will go in later and try to respond.3) Cars/Clothes3a) I don't get it... high brand clothing - Hermes3b) everyone has their Style - I like things that are simple and don't have to worry about3c) Cars did not seem to be a big emphasis when they did flash them on the screen. Sure there was a bentley here and there but it did not seem to get as much recognition and a designer brand dress or shirt.That said I am working on a future video where I dissect buying or leasing cars. Hint buying used cars are the way to go but I'll break it down. So if you want to hear it please like here and it will give me the motivation to get that video out to you soon. I am currently in the middle of the negotiation for my next ride and I'm not going to lie... its really fun. It's not where near the high stakes of negotiating for 20M+ apartment buildings which are the foundation of my investing portfolio.The last takeaway from Bling empire 2) Blissful carefree - despite the obvious petty drama2a) perhaps abundance mindset2b) I work with a lot of people trying to accumulate their first 250k heck 1M and they have this white knuckle mentality - 5 dollar Simple Passive Cashflow Latte - http://simplepassivecashflow.com/the-...2c) Recently I was working with a Student on how they were very close to financial freedom and we were talking about them lightning up. Spending a little bit more even thought this is what you never hear!!!Spending money on dumb things is difficult for me still but I am trying to work on it. You never know when you time up here is over and you can't take any of your money or streams of passive income with you.Maybe we should be more like the folks on BECTA Before I let you know how to get this video's bonus/easter egg/giveaway…. if you like this go to the SPC podcast and go to SimplePassiveCashflow.com subscribe and click the like button - I really appreciate itNow for that free bonus/easter egg - see the link in the commentsIf you are a high net worth Passive Investor and using a 401k or Self directed IRA? You are doing it all wrong! Check out SimplePassiveCashflow.com/qrp which avoids UDFI and UBIT tax and claim the free book there.What is it that you recently spend money on that was a little impractical? Lets get a dialogue. See acast.com/privacy for privacy and opt-out information.

From Bernard Reisz: QRP, SDIRA, UBIT, UBTI, UDFI, 1031, LLCs, entity structuring, financial products, tax strategy & planning, installment sales, financial advisory, estate planning, investing... all of these must be navigated expertly & integratively. The people that you talk to about financial tools & strategies all have something to sell you, making objective info hard to find. Get objective info from a guide that knows every neck of the woods and has nothing to sell you, delivering unbiased expertise. Be EMPOWERED with clarity, certitude, & control. Join the FREE member zone: https://members.resurefinancial.com/ My goal is to empower you to optimize your finances, using proactive and innovative strategies. 401kCheckbook.com: Gives investors direct control of tax-favored funds for real estate equity and debt opportunities using Checkbook Control IRAs, QRPs, Solo 401(k)s, and Checkbook Life Insurance. Delivered with the expertise & integrity, and accounting for the nuances of your personal tax profile and the tax rules applicable to tax-sheltered accounts. Implementation, compliance advisory, & tax strategy for Checkbook Control Retirement Accounts, including SDIRA, QRP-LLC, IRA-LLC, IRA-Trust, QRP, & Checkbook 401k plans - nationwide. Self-directed retirement accounts are not one-size-fits-all and have far more tax nuance than promoters want you to know. Prior to founding ReSure, Bernard served as Director of CoMetrics Partners, managing an array of engagements involving financial consulting and due diligence. Bernard advised owners of closely-held middle-market companies on advanced tax mitigation strategies. Please add any links you want me to share in the episode's description, including your social media. https://www.linkedin.com/in/bernard-reisz-cpa/ https://members.resurefinancial.com/ https://www.facebook.com/BernardReiszCPA/ https://www.401kcheckbook.com/ https://www.instagram.com/resurefinancial/ _____________________________________________ #RealEstatePodcast | #RealEstateAdvice Wanna know more about Barri Griffiths and the WWRE Podcast: https://linktr.ee/wrestlingwithrealestatepodcast The WWRE Podcast is available on all platforms

From Bernard Reisz: QRP, SDIRA, UBIT, UBTI, UDFI, 1031, LLCs, entity structuring, financial products, tax strategy & planning, installment sales, financial advisory, estate planning, investing... all of these must be navigated expertly & integratively. The people that you talk to about financial tools & strategies all have something to sell you, making objective info hard to find. Get objective info from a guide that knows every neck of the woods and has nothing to sell you, delivering unbiased expertise. Be EMPOWERED with clarity, certitude, & control. Join the FREE member zone: https://members.resurefinancial.com/ My goal is to empower you to optimize your finances, using proactive and innovative strategies. 401kCheckbook.com: Gives investors direct control of tax-favored funds for real estate equity and debt opportunities using Checkbook Control IRAs, QRPs, Solo 401(k)s, and Checkbook Life Insurance. Delivered with the expertise & integrity, and accounting for the nuances of your personal tax profile and the tax rules applicable to tax-sheltered accounts. Implementation, compliance advisory, & tax strategy for Checkbook Control Retirement Accounts, including SDIRA, QRP-LLC, IRA-LLC, IRA-Trust, QRP, & Checkbook 401k plans - nationwide. Self-directed retirement accounts are not one-size-fits-all and have far more tax nuance than promoters want you to know. Prior to founding ReSure, Bernard served as Director of CoMetrics Partners, managing an array of engagements involving financial consulting and due diligence. Bernard advised owners of closely-held middle-market companies on advanced tax mitigation strategies. Please add any links you want me to share in the episode's description, including your social media. https://www.linkedin.com/in/bernard-reisz-cpa/ https://members.resurefinancial.com/ https://www.facebook.com/BernardReiszCPA/ https://www.401kcheckbook.com/ https://www.instagram.com/resurefinancial/ _____________________________________________ #RealEstatePodcast | #RealEstateAdvice Wanna know more about Barri Griffiths and the WWRE Podcast: https://linktr.ee/wrestlingwithrealestatepodcast The WWRE Podcast is available on all platforms

Join Mike Cavaggioni and Bernard Reisz on the 43rd episode of the Average Joe Finances Podcast as they discuss providing unbiased and innovative strategies to optimize your finances. Bernard Reisz is a certified public accountant, financial advisor, and ReSure's founder. The company focuses on self-directed retirement accounts, giving investors the ability to put their money in assets they understand best. Today, Bernard shares his story of working towards his certification, turning down big companies, and starting a financial solutions firm himself. In this episode, you'll learn: ● How financial certifications can only do so much and how learning starts on the job. ● The value of going back to the basics when solving unique financial cases. ● What to know when optimizing your finances and the limitations of corporate procedures. ● Where to find guides with financial expertise when most companies only sell paperwork. ● How sharing and scaling your “expertise” can lead you and others to financial freedom. ● And much more! About Bernard Reisz: Bernard Reisz is a financial and tax expert who focuses on investing, due diligence, alternative assets, and entity structuring. He believes tax strategy and financial advisory needs guidance from an expert who knows every neck of the woods and has nothing to sell them, delivering unbiased information. Hence, Bernard aims to empower clients to optimize their finances using proactive and innovative strategies. Before founding ReSure, Bernard served as Director of CoMetrics Partners, managing various engagements involving financial consulting and due diligence. Bernard advised owners of closely-held middle-market companies on advanced tax mitigation strategies. As a guest on numerous economic, tax, real estate, and legal forums, he delivered straight talks and unique insight on 401KCheckBook's Website. Find Bernard Reisz on: 401k CheckBook Website: https://www.401kcheckbook.com Agent Financial Website: https://www.agentfinancial.com LinkedIn: https://www.linkedin.com/in/bernard-reisz-cpa Facebook: https://www.facebook.com/profile.php?id=100018434525079 Check out Average Joe Finances: Our social media links are all on our Flow Page: https://flow.page/avgjoefinances

Bernard Reisz empowers investors to own their finances and break the cycle of dependency on the self-serving financial industry. Bernard is the Founder of 401kcheckbook.com, which gives investors direct control of their tax-sheltered funds for real estate equity and debt opportunities using checkbook control IRAs, QRPs, solo 401k's, and checkbook life insurance.He is also the Founder of AgentFinancial.com which provides tax, equity, and financial services to real estate professionals, including 1031 and 453 advisory services for real estate agents, real estate investors, and mortgage brokers. [00:01 – 02:22] Opening SegmentLet's get to know Bernard ReiszBernard talks to us about his backgroundGiving objective information to customers[02:23 – 24:26] Breaking the Cycle of Dependency on the self-serving financial industryRemoving the conflicts of interest to avoid being exploited by the systemWhat they do for their clients/customersWhat makes a good custodianTypes of investments that don't need custodiansSelf-managing 401k and QRP with no outside assistanceSelf-directed checkbook IRARoles of a custodian in IRAs[24:27 – 28:06] Closing SegmentBernard's advice to people getting into the financial industryOwn it. Delegate intelligently and strategically.How Bernard stays on top of his gameHis way to make the world a better placeHow to reach out to Bernard – links belowFinal wordsTweetable Quotes:“The financial industry is fragmented. So it's dominated by folks that have a one-dimensional focus.” - Bernard Reisz “You've got to own it. Delegate intelligently and strategically to find your truth.”  - Bernard Reisz“There's no substitute for going straight to the source.” - Bernard Reisz“Once you're out there, you get to network a lot, meet a lot of people and make valuable connections.” -  Bernard ReiszResources Mentioned: 401k CheckbookAgent Financial------------------------------------------------------------------------------------------Connect with Bernard on LinkedIn, and check out https://www.401kcheckbook.com/ Connect with me:I love helping others place money outside of traditional investments that both diversify strategy and provide solid predictable returns.Call: 901-500-6191FacebookLinkedInLike, subscribe, and leave us a review on Apple Podcasts, Spotify, Google Podcasts, or whatever platform you listen on. Thank you for tuning in! Email me --> sam@brickeninvestmentgroup.com

Bernard Reisz empowers investors to own their finances and break the cycle of dependency on the self-serving financial industry. Bernard is the Founder of 401kcheckbook.com, which gives investors direct control of their tax-sheltered funds for real estate equity and debt opportunities using checkbook control IRAs, QRPs, solo 401k's, and checkbook life insurance.He is also the Founder of AgentFinancial.com which provides tax, equity, and financial services to real estate professionals, including 1031 and 453 advisory services for real estate agents, real estate investors, and mortgage brokers. [00:01 – 02:22] Opening SegmentLet's get to know Bernard ReiszBernard talks to us about his backgroundGiving objective information to customers[02:23 – 24:26] Breaking the Cycle of Dependency on the self-serving financial industryRemoving the conflicts of interest to avoid being exploited by the systemWhat they do for their clients/customersWhat makes a good custodianTypes of investments that don't need custodiansSelf-managing 401k and QRP with no outside assistanceSelf-directed checkbook IRARoles of a custodian in IRAs[24:27 – 28:06] Closing SegmentBernard's advice to people getting into the financial industryOwn it. Delegate intelligently and strategically.How Bernard stays on top of his gameHis way to make the world a better placeHow to reach out to Bernard – links belowFinal wordsTweetable Quotes:“The financial industry is fragmented. So it's dominated by folks that have a one-dimensional focus.” - Bernard Reisz “You've got to own it. Delegate intelligently and strategically to find your truth.”  - Bernard Reisz“There's no substitute for going straight to the source.” - Bernard Reisz“Once you're out there, you get to network a lot, meet a lot of people and make valuable connections.” -  Bernard ReiszResources Mentioned: 401k CheckbookAgent Financial------------------------------------------------------------------------------------------Connect with Bernard on LinkedIn, and check out https://www.401kcheckbook.com/ Connect with me:I love helping others place money outside of traditional investments that both diversify strategy and provide solid predictable returns.Call: 901-500-6191FacebookLinkedInLike, subscribe, and leave us a review on Apple Podcasts, Spotify, Google Podcasts, or whatever platform you listen on. Thank you for tuning in! Email me --> sam@brickeninvestmentgroup.com

Get holistic financial & tax expertise with a focus on real estate, entity structuring, and self-directed retirement accounts. Implementation, compliance advisory, & tax strategy for Checkbook Control Retirement Accounts, including SDIRA, QRP-LLC, IRA-LLC, IRA-Trust, QRP, & Checkbook 401k plans - nationwide. Bernard Reisz empowers individuals to optimize their finances, using proactive and innovative strategies. He provides an integrated approach to tax and financial planning for real estate pros, focusing on their unique profiles and opportunities. Bernard is the founder of 401kCheckbook.com, which gives investors direct control of their tax-sheltered funds for real estate equity and debt opportunities using Checkbook Control IRAs, QRPs, Solo 401(k)s, and Checkbook Life Insurance. He is also the founder of AgentFinancial.com, which provides tax, entity, and financial services to real estate professionals, including 1031 & 453 advisory services, for real estate agents, real estate investors, and mortgage brokers. Prior to founding ReSure, Bernard served as Director of CoMetrics Partners, managing an array of engagements involving financial consulting and due diligence. Bernard advised owners of closely-held middle-market companies on advanced tax mitigation strategies. (00:01-03:29) Opening Segment - Introduction of the host into the show - Alpesh introduces the guest of the show, Bernard Reisz - Bernard shares something interesting about himself (03:30-32:20) Real Estate Investing Journey and Planning For Biden Tax Changes - How and Why Bernard invested in real estate - What makes private real estate great? - Tax Mitigation Strategy - What does Bernard think will happen under Biden Tax Changes? - Is the opportunity zone will tamper? - Will the state tax tamper as well? - How can an investor navigate through the possible Biden tax changes? - Bernard's recommendations about possible Biden tax changes - Importance of Due Diligence and Diversification - The importance of tax diversification - Will migration from a blue state to a red-state might happen due to the Biden tax changes? - "Don't do anything rash just for tax benefit" - Exercise due diligence - "Tax tools are about investment" (32:21-32:39) Break (32:40-32:59) Second Segment - Welcoming listeners and guest back to the show (33:00-39:32) Fire Round - Will Bernard change the business strategy after Coronavirus? - Bernard's favorite real estate, finance, or other related books - Tool or website Bernard recommends - Bernard's advice to beginner investors - How does Bernard give back? - How can Wealth Matters Podcast listeners reach out to Bernard? (39:33-39:56) Closing Segment Reach out to Bernard by googling ReSure Financial Advisors LLC or visiting https://www.401kcheckbook.com/

Bernard Reisz is a CPA and a Principal at ReSure Financial Advisors LLC, where he provides financial consulting and tax advisory services. Bernard offers holistic finance and tax expertise, focusing on real estate, entity structuring, and self-directed retirement accounts. Bernard is also the founder of 401kCheckbook.com, which gives investors direct control of their tax-sheltered funds for real estate equity and debt opportunities using Checkbook Control IRAs, QRPs, Solo 401(k)s, and Checkbook Life Insurance. In this episode… What is the real cost of a financial advisor? The short answer is 1.5% per—but that is only half the truth. According to Bernard Reisz, paying a financial advisor a percentage of your portfolio will set you back in millions over the long run for little or no value add. So why pay so much when you can empower yourself to manage your portfolio and save millions in fees? Is it even possible for you to learn to manage your own financial or investment portfolio? On this episode of the Tax Resolution Ninja Show, Allan Rolnick interviews Bernard Reisz, the Principal at ReSure Financial Advisors LLC, to discuss the real cost of hiring a financial advisor and why he thinks it's a bad idea for you to hire one. Bernard also explains why it's important for everyone to know how the financial industry works, what you can do to take control of your investment portfolio, and how you can manage this successfully without leaking millions in fees. Stay tuned.

Our guest for today is Bernard Reisz, Founder and Chief Executive Officer of 401KCheckbook.com, which supports investors on investments through retirement accounts. Bernard covers a lot of areas in this real estate space, which we don’t usually talk about. He will demystify qualified retirement plans, share the secrets of different tax services, and give us tips to leverage all these in real estate investing. Let’s tune in now and learn more about financial and tax services in real estate! [00:01 - 09:14] Opening SegmentLet’s get to know Bernard Reisz His story about leaving Corporate AmericaThe different risk management and insurance designations[09:15 - 20:27] Maintain Your Retirement AccountsThe importance of knowing financial and tax servicesBernard explains What are “naked retirement accounts” for Bernard?Bernard tells us how to invest passively with our retirement accounts Keep your money on your retirement accountsWhat’s this specific scenario where it’s advisable to withdraw your money? [20:28 - 31:19] Unrelated Business Income TaxThe 3 common mistakes on Unrelated Business Income Tax (UBIT)Facts about Qualified Retirement Plans (QRPs) you should knowInsights about Unrelated Debt-Financed Income Tax (UDFI) you shouldn’t miss[31:20 - 48:16] Unrelated Business Taxable IncomeHow to leverage the net taxable income? Bernard shares his thoughts about Unrelated Business Taxable Income (UBTI)?How are QRPs and solo 401(k) related?Bernard talks about the services they offer [48:17 - 53:54] Closing SegmentConnect with Bernard - links belowFinal words from Bernard and meTweetable Quotes:“Real estate is tax-efficient whether you’re a passive [or] active investor.” - Bernard Reisz“The title itself and the designation and certification [don’t] mean that much. It’s more about what you are as a person.” - Bernard ReiszResources Mentioned:Yonah WeissMarques Ogden------------------------------------------------------------------------------------------Connect with Bernard on LinkedIn. Facebook, and Twitter. Visit his company online and on LinkedIn and FacebookGuest email: bernard@resurefinancial.comConnect with me:https://www.5tcre.com/FacebookLinkedInInstagramWatch 5T CRE on YouTubeLeave us a review and receive your free ebookEmail us --> abel@5tcre.comSupport the show (https://www.buymeacoffee.com/5Talents)

Learn how income tax rates, capital gains tax rates, the 1031 Exchange, the estate tax and more will change - or not.  The outcome depends upon whether Donald Trump gets a second presidential second term or Joe Biden is elected as the new president. Subscribe to our weekly newsletter here. Tom Wheelwright, the most recurrent guest in show history, joins Keith. He’s the world’s foremost expert at reducing your taxes permanently. He can help you at Wealthability.com Resources mentioned: Tom’s company: Wealthability.com The Tax Foundation: www.taxfoundation.org Mortgage Loans: RidgeLendingGroup.com QRPs: text “QRP” in ALL CAPS to 72000 or: eQRP.co By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. New Construction Turnkey Property: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Top Properties & Providers: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold

Bernard Reisz, is a CPA and is the founder of 401kCheckbook.com, which gives investors direct control of their tax-sheltered funds for real estate equity and debt opportunities using Checkbook Control IRAs, QRPs, Solo 401(k)s, and Checkbook Life Insurance. He’s an expert on self-directed IRAs and how to compliantly use this vehicle to invest in real estate.He is also the founder of AgentFinancial.com, which provides tax, entity, and financial services to real estate professionals, including real estate agents, real estate investors, and mortgage brokers.Connect with Bernard:Email at: bernard@resurefinancial.com or success@resurefinancial.comGoogle: Bernard Reisz, ResureFinancial, or ReSure LLC401kCheckbook.comAgentFinancial.com

Bernard Reisz, founder of 401kCheckbook.com, explains the benefits of using self-directed accounts to invest in real estate. Bernard provides an integrated approach. He gives investors direct control of their tax-sheltered funds for real estate equity and debt opportunities using Checkbook Control IRAs, QRPs, Solo 401(k)s, and Checkbook Life Insurance.

You can only have one job. But you can own as many rental properties or vending machines as you want. Trillions flow through the economy. Build a device to divert this flow to you; you'll see that money is an abundant resource. Dr. Michael Ehrlich from NJIT’s Martin Tuchman School Of Management joins us to discuss asset bubbles and real estate technology. We discuss financial bubbles, narrowing credit spreads, debt, overleveraging, NYC overbuilding and financial technology.   Dr. Ehrlich is a general advocate of borrowing for cash-flowing residential real estate today. Solutions to avoid bubble damage include: residential real estate, water, agriculture, even connectivity. I discuss real estate technology: 3-D printed homes, autonomous cars, iBuying, indoor drones, virtual tours & staging, remote online notarizations. Subscribe to our weekly newsletter here.  Resources mentioned: NJIT’s Martin Tuchman School Of Mgmt.: https://management.njit.edu/ Dr. Michael Ehrlich e-mail: ehrlich@njit.edu iBuyer: Opendoor.com Virtual staging: Rooomy.com Mortgage Loans: RidgeLendingGroup.com QRPs: text “QRP” in ALL CAPS to 72000 or: eQRP.co By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. New Construction Turnkey Property: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Top Properties & Providers: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold

What does the CDC eviction ban really mean to you? Learn how to win home price bidding wars in today's hot market. GRE's own Aundrea Newbern joins us! Besides working with GRE, Aundrea is an active RE agent in Brunswick, GA. She owns 28 rental doors and has her MBA in Finance. She owns long-term rental SFHs and apartments, including some Section 8 tenants. She self-manages. Rock & Roll Hall Of Famer Flavor Flav “drops in” to congratulate the show on 3 million listener downloads. Aundrea tells you nine ways to avoid being outbid in today’s hot real estate market: 1 - Pick a buyer agent that’s courteous to the selling agent. 2 - Write a letter or send a video to the seller. 3 - Agree to use the seller’s preferred title agent, lender. 4 - Offer more than the asking price.  5 - Offer more earnest money than the customary 1-2%. 6 - Add an escalation clause. 7 - Simply ask what it takes to get your offer accepted same-day. 8 - State that you’ll pay out of pocket in case there’s a low appraisal. 9 - Consider waiving the inspection. (This is risky.) Subscribe to our weekly newsletter here.  Resources mentioned: CDC Eviction Moratorium: https://www.nytimes.com/2020/09/16/business/eviction-moratorium-renters-landlords.html Aundrea Newbern email: Aundrea@GetRichEducation.com Mortgage Loans: RidgeLendingGroup.com QRPs: text “QRP” in ALL CAPS to 72000 or: eQRP.co By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. New Construction Turnkey Property: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Top Properties & Providers: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold

The pandemic has fueled remote work. A New Yorker paying $4,000 rent in a 1 BR apartment can now work from Florida, paying $1,500 rent in a 3 BR & 2 BA single-family home. Central Florida benefits from this in-migration.  Florida has law that favors landlords, zero state income tax, a low cost of living, beach proximity and of course, warm weather. Get the report and learn more at: www.GetRichEducation.com/Orlando These Central Florida Build-To-Rent properties are brand new.  They often appraise for $5,000 to $10,000+ more than your purchase price. That’s built-in equity. Your rent-to-price ratio is often 0.8% to 0.9% for single-family rentals. The average tenant stay is 3+ years in this new construction. Get the report and learn more at: www.GetRichEducation.com/Orlando The growth and economic diversity in the region is astounding. The time is likely “now”: brand new construction, high rent occupancy, cash flow, low interest rates, low insurance premiums, low $160K - $220K property cost. Resources mentioned: Central Florida Build-To-Rent: GetRichEducation.com/Orlando Mortgage Loans: RidgeLendingGroup.com QRPs: text “QRP” in ALL CAPS to 72000 or: eQRP.co By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. New Construction Turnkey Property: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Top Properties & Providers: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold

Should you rent or own your home?  Host Keith Weinhold reveals the biggest homeowner myths. Complete episode transcript below. Read along. Resources mentioned: Business Insider: Rent vs. Own: https://www.businessinsider.com/buying-a-home-instead-of-renting-isnt-always-better-for-your-savings-2017-11 Housing Wire: Homeowners Wish They Were Renting: https://www.housingwire.com/articles/49743-quarter-of-us-homeowners-wish-they-were-renting-instead/ Mortgage Loans: RidgeLendingGroup.com QRPs: text “QRP” in ALL CAPS to 72000 or: eQRP.co By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. New Construction Turnkey Property: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Top Properties & Providers: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold   Welcome to Get Rich Education. I’m your host, Keith Weinhold. Is homeownership a sham? Is it a rip-off?    When it comes to the home that you live in yourself, is it better for you to pay rent to a landlord, or own that home yourself?    For your primary residence, what should you do in your specific life situation? You’ll learn today … on Get Rich Education.   ——————-   Welcome to GRE! From Syracuse, Sicily, Italy to Syracuse, New York and across 188 nations worldwide. I’m Keith Weinhold, this is Get Rich Education.   Usually on this show, you learn about how buy-and-hold rental property, when bought strategically - produces wealth. We’ll return to that next week, but today ...   … it’s about your primary residence. And, when we talk about, should you own your home or is it better for you to pay rent to a landlord - think about how important this is.    Because whether I’ve had the chance to meet you yet or not, there’s one thing that I definitely know about you, and that is, you are always going to live … somewhere.   Your housing expense is one of the biggest financial expenses in your life.      Despite that it’s such a substantial financial decision for you, some people revert to orthodoxy - this FLAWED orthodoxy where they think that owning is always better. That’s not true.   I really want you to watch your mind as I tell you this today, because there are very likely a few tripwires installed there … and I am about to hit some of them. So do your best to remain calm … if you must.   Though more people are waking up to the fact that renting is sometimes better, I still think that popular culture has long reinforced this misplaced notion that owning is always better.      “Are you a homeowner, Greg? No. I rent. Oh.”    Haha! That’s from the classic comedy movie “Meet The Parents”. Owen Wilson & Ben Stiller - while Robert De Niro - the future father-in-law was party to that chat where he’s thinking that the homeowner is the more apropos suitor for his daughter than the renter is.    Look, if you can OWN a home and your monthly housing payment is $2,500, but you could instead PAY RENT on an equivalent home for $1,500 - now your cash flow has increased by $1,000. That’s money in your pocket today that could be re-invested at a rate of return.   Now with your $2,500 housing payment in this example - that’s more than just a mortgage payment remember.    When you own, your HOUSING payment consists of mortgage principal & interest, property tax, property insurance, maintenance, repairs, utilities and more. You’ve got to add all that up to get to $2,500.    What about that TIME it took you on HOW to repair the leaky faucet when you owned the home? Factor that in.   Now, the homeowner might reply, but at least part of my $2,500 payment is building equity for me. Yes, it is. A minority of that payment is building equity. You’d rather have equity - you’d rather have principal paydown than lose it to interest.    And you’d rather have equity than nothing.   But, as I’ve discussed extensively elsewhere - so I won’t do that again here - home equity is unsafe, illiquid, and it’s rate of return is always zero.   You can probably repeat that to me at this point - ha!    Also, what’s more important in your life? Cash flow or equity? Cash flow is what creates financial freedom. As an investor in the pursuit of freedom, in fact, you want to CONVERT your equity to cash flow.    Remember, in this $1,500 rent payment vs. $2,500 housing payment scenario on your primary residence … it’s the renter that has the additional $1,000 cash flow and the homeowner that builds the equity.   Let me remind you. If you would like to READ along as you listen to the show today or you know someone that’s hearing impaired, you can read the complete transcript to this episode at GetRichEducation.com/309.    That’s GetRichEducation.com/309 to see all the Show Notes and the entire written transcript for this episode.    Well, some people think that buying & owning their primary residence is: "LIke paying rent. Except you get to keep it." Well,that has caused millions of people to buy houses that they later regret.    I know a young, married couple - Jerome and Jessica - they’ve got two kids. They wanted to move from snowy Anchorage, Alaska to Las Vegas, Nevada. They had lived their entire lives in Anchorage and were tired of the snow and wanted some heat.    You think that they might discover an overcorrection problem, btw? Vegas is in the middle of the Mojave Desert. But anyway ...   They had owned their Anchorage home for five years before they put it up for sale. That was the first home that they ever owned - starter home.   Had they been renting that home - they could have moved where they wanted to in as little as a month.    But as homeowners, by the time they made all the make-ready repairs to the home, got it listed for sale, had to repeatedly prepare their home for showings - meaning they had to intermittently get their home in pristine condition to make it look good for showings - uprooting their lives every time … they finally sold it in 4-½ months by the time their buying got their financing in order & inspections & appraisal & the deal actually closed.   If Jerome and Jessica had been renters instead, they could have been on their way in a month.   Plus, over the five years, their home appreciated a little, but not enough to offset the 4% closing costs when they had bought five years earlier, all the maintenance & repairs that they had put into place DURING the five years they lived there, plus then they then had to pay a real estate agent a 5% commission when they sold.   They not only lost money by owning, they lost time, they lost mobility. They didn’t have liquidity.   For Jerome and Jessica, they got a lesson. “Paying rent is not the same as throwing money away.”   Well, I can tell you, Jerome and Jessica moved to Vegas one year ago now. They have been renting from Day One there, they’re still renting, and they have no plans to buy in Vegas anytime soon.   “Paying rent is not throwing money away” because you get the BENEFIT as using that space as a home, a place to sleep, prepare food, eat, shower, study, entertain - how in the world is that throwing money away? It isn’t.    You know that I’ve told you on this show before that paying rent is not throwing money away just like the five hour flight that you took from Boston to Phoenix last year wasn’t throwing money away.   No one called it throwing money away when you paid $500 to “rent” that airline seat for five hours. Why, because you had the BENEFIT of travelling somewhere.   Sheesh, how far are people going to take it with this nonsense that “Paying rent is like throwing money away?”   Your gym membership is $50 a month. But you didn’t get to take a set of the 40-pound hex dumbbells home after six months of membership did you?   Gosh, how far would you take this nonsense line of reasoning?   You like to go mini-golfing? I’ll bet that you paid some portion of your fee to rent the put-put club and a little orange golf ball for two hours.   How are you going to think - that you now expect to own equity in a put-put golf club that’s all nicked-up and was used by 80 different people? Sheesh, that’s ridiculous.    You had the benefit of a gym membership because you’re healthier. You had the benefit of mini-golfing because you like some recreation. You didn’t throw money away.   What about renting an RV for a week? You didn’t throw money away. You had the benefit of using it.   This whole misguided notion that paying rent for a place to live is throwing money away is a … replete farce.    But that also doesn’t mean that renting your primary residence is always better than owning either.    Well, let me give you some numbers here. This will help you debunk that notion that - ad infin-I-tum, homeownership is better.   Look, in a place like Manhattan’s Tribeca neighborhood, a small apartment has, just for simplicity, say a rent-to-value ratio of three-tenths of one-percent.   That’s a lousy deal if you’re the landlord and an awesome deal if you’re the renter.    So, what that means is that market rent is only $300 per $100K worth of property. That’s that three-tenths of 1%.   That ratio might then be $3,000 of rent on a $1M apartment in Tribeca, Manhattan.   But look, in a place like Memphis, Tennessee or Little Rock Arkansas, the rent-to-value ratio might be a full 1%.    Now see, if you’re a renter here, you’d have to pay $1,000 for every $100K worth of property. (Not $300 like Manhattan)     Well, in that case, it makes more sense for you to own your home.    BTW, it also then, makes sense for you to own Memphis real estate & rent it to others - because for every $100K of Memphis property you own, you’d RECEIVE $1,000 in rent. You’d RECEIVE a full 1%.   Generally, on the coasts, it’s better to pay rent for your primary residence - and in the heartland, it’s better to own that real estate - whether you’re renting it to others OR living there yourself.   But there are so many more considerations here than just numbers and geography. So, what else makes sense to your specific situation?   And before I go on, please don’t think that I’m “against” the real estate AGENT industry. That’s not true. Gosh, I’ll stand up for a GOOD real estate agent when it makes sense.   For example, when it comes to selling your home, you might not want to pay a 5 or 6% sales commission to an agent. Some people would rather sell it themselves and pay 1 or 2%.   But what some sellers fail to consider is that an agent might help you get 4% more for it because they know how to reach more buyers, and do it fast, and save you a lot of hassle and uncertainty.   So, there’s just one example of how I’ll stick up for agents when it makes sense.     But, getting back to should you own or rent your primary residence, I’m here to help you decide what’s best for you. You’ve ultimately got to decide.    I WILL tell you when it’s better to be a homeowner than rent shortly. But first ... A recent survey from Freedom Debt Relief shows that homeowners have many regrets when it comes to the purchase of a new home, mostly because they are largely unprepared for the initial cost and the ongoing financial responsibility that comes with homeownership.  Of the 1,028 people surveyed, 29% said homeownership makes them feel anxious and stressed, while 26% said the cost of owning a home is a burden and they wished they were renting instead. When it comes to affording house payments, it was Millennials and Gen Z homeowners who said they are struggling the most. Half of these homeowners said property taxes turned out to be higher than they expected, while 52% said their monthly mortgage payments are too high.  With renting comes an always-available maintenance team and the ability to call the landlord when there is a problem. Conversely, homeowners have to mow their own lawn, paint their own walls and fix their own leaky faucets.  And some of these tasks have homeowners shelling out more cash than they planned, with 59% saying maintenance and repairs are more costly and require more effort than expected, and 60% saying they cannot afford needed upgrades.  That said, it seems the idea of owning a home is still attached to the concept of what it means to succeed in this country, with 59% of homeowners saying they believe that owning a home is still part of the American dream.  I’d like to add that the survey was conducted “pre-pandemic”.   Most people think that owning a home is a financial asset.   That's debatable.   The Rich Dad school of thought is known for saying that, "A home is a liability, not an asset".    An asset puts money into your pocket every month. A home is a liability because it takes money out of your pocket every month.   Of course, in the conventional sense, a home is in your asset column and it’s mortgage is in your liability column.   Though owning a home is often a poor financial investment, you still tie up a lot of money in your humble abode.    You really have more than two choices in how you live - it’s actually more than just rent or own.    You have four choices in how you live: you can own your home, pay rent to a landlord, be homeless, or live with your parents – ha!   We’re only discussing two here: Rent vs. Own.   Fannie Mae associates “Home ownership with the American Dream.” in their marketing slogan.    In America, how many people own their homes vs. rent their homes anyway? About 2/3rds own and ⅓ rent. The homeownership rate is currently about 68%.    Well, I’ve probably got your wheels turning now on “rent vs. own”.    Let’s break things down further. I’ve got 16 factors that I came up with here for you to consider, many of which you’ve never thought about before - on this.   Often it’s an exercise in pros vs. cons for you. Often, it’s rationalizing a series of trade-offs for you.    The first of these 16 factors is ... Mobility. Many people move more often than they expect. Renting keeps you nimble. With a new job opportunity or life change like marriage and kids, your mobility is an asset. A homeowner that moves a lot gets eaten up and beaten up with closing costs, make-ready expenses, and sales commissions. Kinda like where I told you about Jerome, Jessica, and their two kids.   Choice. There are more homes for sale than there are rentals, especially at the higher end. See if you want to rent a high-end place, they’re often really hard-to-find, especially in a more rural area. Renting of high-end homes limits your choice. You might feel like you HAVE to buy to get what you want.   Equity Buildup. Equity is the difference between what your home is worth and how much you owe on a mortgage. Homeowners build equity; renters don’t. Equity is like a forced savings plan. But equity is an awful investment with zero return. Your return is zero because the presence or absence of home equity has nothing to do with whether or not your home appreciates. (Yet you would rather have equity than nothing.) Houses make terrible “banks” - they’re bad places to store cash.   Liquidity. Though most homeowners build equity, it’s difficult to access. To tap your home equity, you must prove to a bank that you qualify again, wait months, incur costs, and you still might be denied access to the equity. Opportunity Cost. Many tie up a 20% down payment or more in home equity. As I’ve stated, those equity dollars are low-use, zero return dollars. Instead, your chunk of money can be earning a return for you elsewhere.   Sunk Cost. This is an overlooked killer for homeowners. I mentioned some of them already. Mortgage loan closing costs, constant home maintenance and repairs, property taxes, utilities, landscaping, snow removal, leaf raking, rototilling, replacing obsolete fixtures and appliances, roofing, and painting costs are never fully recouped when you go to sell it. Renters bear almost none of these sunk costs. Renters aren’t losing time at Lowe’s & Home Depot either.   Control. Homeowners have a big advantage here. The peace of mind of knowing that a landlord can’t tell you to move is priceless. You have a feeling of belonging, an anchor. As a homeowner, you can knock out a wall, renovate your kitchen, or add a fence. Make it yours. Control is a big homeowner “plus”.    Appreciation. Renters don’t experience price appreciation. They commonly even have to endure rent price increases. Homeowners with loans benefit from financial leverage, which can amplify your wealth in an appreciating environment (though you’re lucky if this offsets ongoing opportunity cost and sunk cost). Inflation becomes your friend for homeowners - and when you’ve only got a tiny down payment into a home that you own - leverage AND inflation are both your friend. Now, a homeowner may also get an unusually outsized equity benefit if they buy in the right place at the right time. For example, if they had bought 10 or more years ago in a place that’s appreciated a lot - for example in Charlotte, Nashville, Austin, or Boise. That could be a homeowner boon there. But if you buy a home and it’s value doesn’t appreciate - or even goes down - plus each month you paid more than you would have as a renter - plus you’ve lost time doing repairs & maintenance, then you’re REALLY lost out as a homeowner. Tax Advantages. Homeowners often get the mortgage interest deduction. But this is just one small consideration. As our most recurrent guest in GRE history, Rich Dad Advisor Tom Wheelwright says, “Don’t let the tax tail wag the dog.” To say that “I’m buying instead of renting for tax reasons.” That’s a really weak argument.   Low mortgage rates. Homeowners can tie up long-term fixed interest rate debt at these historically low rates. Economists believe they’ll stay low for a long time into the future. This is a homeowner advantage.   Price and Rent-To-Value Ratio. If a home costs less than $250,000, own it. If it costs more, pay rent. If the monthly rent is under $700 per $100,000 of home, rent it. If rent costs more, own it. That’s that approximate seven-tenths of one percent rent-to-value ratio - or rent-to-price ratio. This formulaic approach indicates how much “home” you have the benefit of living in per dollar paid. Regional and other factors can skew these numbers. Of course, when we get that general with the numbers, there are going to be more exceptions.   Community formation. Owning your home provides both you and your neighbors a feeling of “belonging.” Homeowners are more likely to look out for the common good of the neighborhood. That helps everyone. People feel more fulfilled when they’re part of something greater than themselves.   Travel. This is so simple yet everyone overlooks this. Have you been to New York City? New Hampshire? Iowa? Arizona? Florida? Alaska? Ecuador? If you haven’t even gotten out to see the very world that you live in, be a renter until you’ve found the place that fits your interests.  Some people find themselves owning a home for a few years, then later realize that they don’t even live in a region that fits their interests. Maybe you don’t want to move far away because you want to be close to family. That’s legit. Family can be a good reason for NOT making a distant move. It’s about what’s important … to you.   Personal cash flow. If it costs substantially more to own a place rather than rent that place, then rent it…and vice versa. Homeowners that divert too much of their income into housing payments are what’s known as “House Poor.” This stifles your opportunity to travel, invest, and provide opportunity for your family.   Natural disasters. Areas subject to frequent earthquakes, hurricanes, and floods clearly tilt to the renter’s advantage. Even if you’re adequately insured as a homeowner, these catastrophes are worse for homeowners. No one thinks about that stuff until it happens.   Consumer advantages. Owning rather than renting can give you higher credit card limits and more favorable insurance rates. Those are the 16 factors that I compiled to help you figure out what makes sense for you.   A decided stigma still exists with renting. But you don’t live your life for the Joneses, you live it for you.   I’ve got more for you on: “Should you rent your home or own your home.?   Hey, have you had something on your mind that’s made you want to write into the show, but you just haven’t done it yet?   Well, I think that it’s been a while since I mentioned our Contact Page here on the air.    You can get ahold of us at GetRichEducation.com/Contact.   What you can do there is either send us a WRITTEN message - or you have the option of leaving some audio - basically leaving a voicemail.    I really like it when you leave us a voicemail personally, because it’s something that I might be able to play & answer on the air for you.   I like to hear your voice.   We get a ton of messages - and we’re grateful for them. But understand that we sure can’t give personal replies to every one of them.   You can either write in OR leave a voicemail, again, at GetRichEducation.com/Contact.   More on rent vs. own, next. I want to try to help you make the best decision that you possibly can. I’m Keith Weinhold. This is Get Rich Education. ____________________   Welcome back to Get Rich Education. I’m your host Keith Weinhold.   Homeowners have a higher net worth than renters.    The average homeowner net worth is $195,000. The average renter net worth is only $5,000.    That is a substantial gap. The means that homeowner net worth is nearly 40 times what renter net worth is.   Does that alone mean that owning is better? No. I think that it does TILT toward owning.   But see, to even BE a homeowner and qualify for a mortgage, you would have already needed to have assets and income … in order to cross that threshold.   I don’t think these figures are a good reflection of WHERE the homeowners wealth actually came from - was it equity building through leveraged appreciation & principal paydown or how much income they earn from their job?   That’s information that I’d like to see.    Of course, in the greater context of Get Rich Education - net worth matters. Not as much as cash flow, but it matters, because net worth can be converted into cash flow.   Nonetheless, that net worth stat still tilts to the homeowner favor, just not as much as one thinks. "People often say that buying a home was the best investment they ever made," that’s what Ne ela Hummel said - the chief planning officer at financial planning firm Abacus Wealth Partners.  "The problem is that their return as investors is often worse than they think.  When calculating how much they made on a home, most people do not include the out-of-pocket costs they incurred through things like replacing pipes, repairing roofs, or numerous other unexpected expenses that come up. As a tenant, your costs are fixed, but as a homeowner, you are on the hook for any repair that comes up." That’s the end of what they said. Those needed repairs to your home may involve you doing a lot of research online - and watching YouTube videos - to find a solution or simply paying a repairman to remedy the issue.  Either way, you’re on the hook for investing more time and money into your home when something breaks. Now, I’ve got another test on renting vs. owning your home.   Is a home an “investment”? Do you see your primary residence as an “investment”.   Well, what is an “investment” anyway? What is the definition of “investment”.   We are an investing show - and we take deep consideration of both the value of your time and your money here, so …   The definition of “investment”, per the Oxford dictionary is … “the action or process of investing money for profit or material result.” That’s it.   So is your home an investment? I think some people see it that way.    Like I’ve said, if you’re rather lucky and buy the home in the right place and at the right time - you could profit from it. Though that’s more the exception than the norm … probably.   What I like to say is that in general, your primary residence is a poor FINANCIAL investment. But it is a good LIFESTYLE investment.    See, in this way, your primary residence is like a vacation.   That is because, think about the money you spent on your last vacation. Whether you went to the beach or the ski slopes or French vineyards, it was not a good strict FINANCIAL investment, but it was a good LIFESTYLE investment.    You improved your quality of life. You improved your standard of living.   A home is typically a good lifestyle investment and a poor financial investment.   Now, look, we’re all somewhat biased based upon our own set of experiences. That goes for me too. I am an 18-year real estate investor.    I grew up in a home that my parents … owned. They even had the mortgage completely paid-off early.    In fact, I think I shared with you before that my parents still live in the same Pennsylvania house that they’ve owned continuously since 1974.   But when I grew up in upstate Pennsylvania, all my friends’ families OWNED their homes. No one rented.   Later, I’d go on to learn about socioeconomic stratification and how I’d just be less likely to associate and even meet kids from renter households.   There was one notable outlier. When I was about 14 years old and the Petroski family moved to town - they were some pretty nice, relatable friends that were into sports & baseball cards - and I learned that they rented.    And that was the first time that I ever remember hearing the word “landlord” in my life … when the Petroskis talked about their landlord, Mr. Hosley.   I’ll tell you, my parents owning their home might have help stabilize my childhood. I’m not really sure, because I can’t compare what it’s like to move as a kid, because we never moved.   If you’ve got kids, is uprooting them to move damaging to them?    Or does it help them become more adaptable later in life? I truly don’t know the answer. I haven’t read about that at all.   But all the kids knew where I lived & could count on me for getting together.    I had an awesome childhood, raised with two married parents, playing wiffle ball in the yard, catching crayfish in the creek, going camping, and collecting Star Wars action figures. All that great kid stuff. And part of that is … well ...   Home felt like home. If it’s important for you to build a legacy for your family and have your home incorporated into that - then perhaps only homeownership will give you those … nostalgic feelings.    For me, it was knowing how my brother & I’s Christmas stockings were going to be hung from the mantle in the living room next to our wood-burning stove.    The love from my parents is the most important thing for sure. But knowing that everything was going to be in the same place every year too?   You need to understand something. That right there brought me a FEELING, an emotion, that concern for a rent-to-value ratio NEVER could. That’s stuff’s got NOTHING to do with math.   If you can’t feel at home, at home, then where you can feel “at home”?   Remembering that spot on the living room floor where I was watching the television when the Phillies won the World Series. Yeah, I can still go there and show you that in my parents’ home.   See, if I go much further down this track, I’ll soon get teary-eyed here with you.    So, with rent vs. own, is there a hybrid approach? No, there’s not really. There’s something called a lease-purchase. But those agreements are uncommon.    One somewhat hybridized approach is … one that I’ve taken.    I own the home that I live in. I’ve lived in that home for 8 years. But see, what I did is, knowing what we know about equity, is that I decided to own my home but have a low equity position.   I made a 5% down payment with a conventional loan.    See, now I’ve got 20:1 leverage, very little skin in the game, and still have control, plus I got a 3.5% interest rate back in 2012.   See, instead of putting 20%, with 5% down, now I have that difference of 15% of the value of the home … out working for me as equity levers in other income properties in other states.   And no, I pay ZERO monthly PMI despite putting 5% down with a conventional loan. I’ve given you detail on how I pulled that off on previous shows, and you can too.    The short story is, make a strong offer on your buy price and put it into the contract that your seller pay upfront PMI for you.   Now, there are some other distinct things happening in my geography where - if someone wanted to come buy my primary residence from me, but yet I could keep living here as their renter …   … and it was written into the contract that they couldn’t make me move, and I know I would pay them a lower rent amount than I’m currently paying in my mortgage & all those other homeowner expenses, I WOULD consider doing that.   Those situations are hard to find.   Yep, I would convert my mortgage payments to rent payments if I could get that arrangement.    And why do this? Because the lower rent payment would increase my personal monthly cash flow, plus it would free up any dead equity that I have in the home.   Part of the rationale there is that my home market has few prospects for substantial appreciation in the next few years.   Well, in rent vs. own, what’s the bottom line with what makes the most sense for you financially? (Just … talking financial only here)   Be a renter in a high-end home and then buy low-cost income properties in investor-advantaged markets in the Midwest and South - that you rent out to others.   See, if you’re a renter in a high-end home, now you’ve got zero dead equity tied up in your home - and instead, it’s leveraging property in sensible markets.   In fact, I know a few other people - savvy people - that understand rent-to-price ratios and do exactly that.    They’re FAIRLY wealthy people that are renters by choice - and own lots of rental property in low-priced markets.   But there’s no one definitive OVERALL factor in your Rent vs. Own decision because this is where finances and feelings intersect.   So here’s hoping that you’re finding a few considerations that you’ve never thought about before!   To be clear here and to summarize overall ...   Is homeownership a sham? Is it a rip-off? No.   Is homeownership overrated? Yes, it still is.   Many people that are renting should own. These people seem to know that.   Conversely, many that are owning would actually be better off renting. Few seem to know that and they’re even willing to take up an argument with you.  They’ve heard the same “Paying rent is like throwing money away.” thing for so long, that they’d rather argue than really think it through.   Well, the reason that I did this show today - though it’ll be just as relevant if you’re listening 5 to 10 years from now, is pandemic-related.    It’s because the COVID-19 pandemic is appearing to increase the migration rate as people look for less dense housing.    Whether you’re migrating or not, now you better know whether renting or owning your home makes the most sense for you.   Next week here on the show, we’ll discuss what we usually do - INCOME property - property that you don’t live in, but instead, rent to others - and just exactly why the investment makes more ordinary people wealthy than anything else.    If there’s one thing that I know about you, it’s that you are always going to live somewhere.    And you know what else, so is everyone that you know.    Every person that you know - may or may not own rental property - but everyone that you know is always going to live somewhere too.    Do you think that this show would benefit them?    This episode in particular might save your family and friends SO much time and money.   I love it when you share the show with others. So I’d be grateful if you took a screenshot of this episode and shared it on your Facebook, Instagram, Twitter, LinkedIn, or even through an email or text with those that you care about.    I always endeavor to make things clear to understand here on the show. I’m Keith Weinhold.   Don’t Quit Your Daydream!

Bernard empowers individuals to optimize their finances, using proactive and innovative strategies. He provides an integrated approach to tax and financial planning for real estate pros, focusing on their unique profiles and opportunities. Bernard is the founder of 401kCheckbook.com, which gives investors direct control of their tax-sheltered funds for real estate equity and debt opportunities using Checkbook Control IRAs, QRPs, Solo 401(k)s, and Checkbook Life Insurance. He is also the founder of AgentFinancial.com, which provides tax, entity, and financial services to real estate professionals, including 1031 & 453 advisory services, for real estate agents, real estate investors, and mortgage brokers. Prior to founding ReSure, Bernard served as Director of CoMetrics Partners, managing an array of engagements involving financial consulting and due diligence. Bernard advised owners of closely-held middle-market companies on advanced tax mitigation strategies.

Where are the big investment risks today? Economic forecaster Harry Dent tells us. Despite pandemic-driven unemployment, tenants are largely paying the rent. The price of an existing American home is now $304,100, surging 8.5%. Lumber prices for a new home are up $16K since April. This increases the value of your property’s replacement cost. The new 0.5% adverse market condition fee for refinances is annoying. Learn how to avoid it. In the pandemic, real estate keeps shining. Harry Dent is fired up. He joins me to tell us why he thinks most assets are in a bubble: economics and demographics.  His latest book is “Zero Hour”. Baby Boomers find renting to be more acceptable today. Harry predicts when stocks will fall 80-85%, a crash occurs, and about the profligacy of the Fed printing trillions in the pandemic. Resources mentioned: Harry Dent’s website: HSDent.com Mortgage Loans: RidgeLendingGroup.com QRPs: text “QRP” in ALL CAPS to 72000 or: eQRP.co By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. New Construction Turnkey Property: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Top Properties & Providers: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold

The wealthy are enjoying federal monetary stimulus. Meanwhile, unemployed tenants can now be evicted nationally (check your local law). Own assets? Great. Mortgage interest rates are at historic lows; the S&P 500 is at an all-time high. (Entire episode transcript is below. Read as you listen.) In the pandemic, tenants want single-family homes more than communal apartments. Fannie Mae & Freddie Mac want to add a 0.5% refinancing fee.  Homebuilder sentiment is high? Why? High demand, low inventory, low rates. Stagflation is explained. It is a stagnant economy with high inflation. There are signs that inflation is poised to increase. Resources mentioned: Inflation Triple Crown video: https://youtu.be/dZojl686fU0 Section 8 turnkey property: www.GetRichEducation.com/Section8 Stagflation video: https://www.youtube.com/watch?v=YaC_PNKu_Cg&feature=youtu.be Elevator Anxiety: https://www.axios.com/elevator-anxiety-reopenings-9a474985-4786-43a3-8b64-5119ff7f2267.html Mortgage Loans: RidgeLendingGroup.com QRPs: text “QRP” in ALL CAPS to 72000 or: eQRP.co By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. New Construction Turnkey Property: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Top Properties & Providers: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold   Complete Episode Transcript:   Welcome to Get Rich Education. I’m your host, Keith Weinhold.    The rich are getting richer and the poor are getting poorer. I can’t think of any one time in my life where that’s been happening more than it has been than right now.   I’ll tell you why - and what you need to do to get on the right side of that.    What is going on in the real estate market and what are the real estate economics that matter? Then, a discussion about inflation. Today, on Get Rich Education. ____________   Hey, you’re inside GRE. From Manila, Philippines to Managua, Nicaragua and across 188 nations worldwide, I’m Keith Weinhold. This is Get Rich Education.   The rich are getting richer, the poor are getting poorer - and I can’t think of any one time in my life where that’s been happening more than it has been than right now.   Because Americans living paycheck-to-paycheck might now be ... paycheck-less. Some of them are laid off - because of the pandemic - and now they're concerned that there's no national eviction ban.   That’s right. In most states, non-paying tenants CAN be evicted at this time. Now, you’ve got to check your local law.   Well, when is Congress going to do something to relieve those that the pandemic has left unemployed?   Well, they don’t even reconvene until after Labor Day.   Some people are wondering - “Where is the CARES Act 2?” Where are those updated forbearance options, eviction moratorium, the PayCheck Protection Program, and the $1,200 stimulus checks and the stepped-up weekly unemployment compensation?   In fact, Richmond Fed President Thomas Barkin had  good metaphor. He said: “Months ago, when we did the first stimulus, we thought the economy faced a pothole and the stimulus put a plate over it so we could navigate.    Now escalation of the virus may be making that pothole into a sinkhole and creating a need for a longer plate.” That’s the end of what the Fed President said.   Now, look, I think there’s a lot to be said for just letting the free market do it’s job.    But it’s a little hard to be in this laissez-faire, Austrian economics school of thought when some people could be suffering.     So that you know what I’m talking about, “lay-say-fare” basically means no government intervention into the free market.   Meanwhile, the rich are bingeing off Federal Reserve policy and liquidity injections that keep mortgage interest rates at historic lows and the S&P 500 at an all-time high.   Mortgage rates recently dipped below 3%, which is just amazing.   You don’t even have to be THAT rich … to benefit. If you’ve got substantial exposure to the real estate market or the stock market, chances are, that those assets are doing alright.   One thing that you need to keep in mind as an investor, is that, when the Fed puts rates on the floor, it affects more than just MORTGAGE rates - it affects other rates too - like savings account rates.   Just look at the rates at bank savings accounts.    Even if you’re in one of these online banks that give better yields than traditional brick-and-mortar banks - we’re talking about online-first banks like Ally Bank and Popular Bank - they were paying two-and-a-half percent on savings accounts not all that long ago.    Even those banks are now down to about three-quarters of one percent - probably less than the real rate of inflation.   So because savers get punished worse than ever right now, that, in turn, forces more people INTO things like real estate, because you’re in search of that yield.   Even retirees can’t rely on the paltry income from three-quarters of one percent yield so they have to go to the markets to chase yields too - sometimes unwillingly.   Well, when all these people that got negative REAL yield on savings accounts and CDs - and aren’t going to stand for it anymore, it forces more demand … and money into markets and consequently, floats the price of everything up.    That’s what’s going on now.   Now, I personally don't really like this deepening canyon between the "rich” and the “poor". But I know which side I'd rather be on.   Besides the investment properties, a lot of people want to move and shake-up their living situation like never before - their primary residence - and filter their new home-buying criteria on pandemic ways of life.   Bidding wars are rampant for single-family homes. How rampant are they? Well,  Zillow just reported their highest daily active user count ... ever.    Now, though property data can move even slower than your last 1031 Exchange did, Real Estate Economist Daren Blomquist just compiled THESE year-over-year price changes through quarter two.   You’ve heard Daren Blomquist on the show here. He broke this down this way:    City real estate is up +4% - again, this is all year-over-year through the second quarter. Town +4% Suburban +5% Rural +11%   The two sources are ATTOM Data Solutions and the U.S. Census Bureau.   So rural is appreciating the best. City and town is appreciating the least.    With time, I expect urban areas and apartments to slump. Of course, urban areas and apartments kind of go together.    In the pandemic, living in a lot of large apartment buildings has become about as fashionable as Jazzercise and The Atkins Diet.   Of course, at GRE, we've long focused on rental single-family homes. We’ve talked a little about apartments and you know that I started out with a four-plex & got my start in real estate that way.   This week, NAR Chief Economist Lawrence Yun noted:   " ... (There's) an oversupply of apartment buildings, especially in city centers given the evident recent shift in consumer preference for single-family homes in the suburbs.    Lawrence Yun continued: "Apartment rent growth could therefore be tough going ahead.   The rise of single-family units is welcome, as overall inventory of homes for sale are down 19% from one year ago and there is intense buyer competition in the market as a result." That’s the end of what Lawrence Yun said.   As long as your tenant can pay the rent, this is welcome news for your existing single-family rental homes - like the ones that you’ve acquired through GREturnkey.com.    It puts upward pressure on the price. So congratulations there.   The appetite for real assets, especially desirable rental single-family homes, now propelled by low inventory and low interest rates has put you in good shape if you’ve acted.   But of course, the COVID pandemic isn’t over. We don’t really know how all of this is going to turn out. And even when a vaccine is developed, remember that it will probably take … at least a few months to distribute it.   In my OWN portfolio, all of my single-family rental homes are occupied - 100%. But my apartment building vacancies are unusually high right now.   When we talk about apartment buildings and office buildings as well - Axios recently reported about how residents and workers are experiencing what they call “elevator anxiety”. I’ll put that in the Show Notes for you.    An elevator is one of the most physically, uncomfortable awkward places to be in the pandemic.   If you’re wondering about how that real estate looks - we’re generally talking about buildings that are four or more stories in height.   In fact, the ADA - the Americans with Disabilities Act - stipulates that properties with four or more stories generally are going to need to have an elevator.    I’ll tell ya - if apartment buildings are as unfashionable as the Adkins Diet these days, then being inside an elevator is about as hip as Jane Fonda workout videos, NordicTrack, and Sweatin' To The Oldies with Richard Simmons.   https://youtu.be/na9ZZ4ZjVa8?t=28     Oh geez. Did that really just happen? I guess it did. So … while we’re all processing that, getting back to real estate here.   Now, Fannie Mae and Freddie Mac recently said that they will start charging a 0.5% “adverse market fee” on all refinances, including both cash-out and non-cash-out refis. They were trying to put that new fee into effect for next month. What a drag that would be. So for every $200,000 you refinance, you’d have to pay an additional $1,000 fee - or maybe your lender would pay it. What Freddie Mac said is: “As a result of risk management and loss forecasting precipitated by COVID-19 related economic and market uncertainty, we are introducing a new … what they call ... Market Condition Credit Fee in Price”. Freddie sent in their notice to lenders. Wouldn’t that be an annoying fee? Well, almost immediately, the National Association of Mortgage Brokers struck back. They launched a campaign to reverse that newly announced one-half of one percent refinancing fee. We’ll see where that goes.   Now, things are really good for homebuilders these day. An index measuring homebuilder sentiment matched its highest level ever yesterday. Why? I mean, it’s simple. There is a healthy amount of DEMAND from buyers and not enough homes to meet it.  Also, the 30-year fixed mortgage rate bottomed out at 2.88% in August, the lowest point on record. Those low borrowing rates are boosting homebuyers' appetites … obviously. There really are a few recent stories that are de facto microcosms - reflections of this appetite for a work-from-home arrangement and less dense housing. For example, it’s really telling to look at what the outdoor clothing and gear company, REI just did. Do you like REI? I like shopping there. Even if you aren’t into outdoor stuff, you can always find a cool water bottle or something at REI. Well, they just announced plans to sell the lavish corporate campus that they had just finished building near Seattle.  REI executives concluded that employees were able to collaborate remotely better than the company originally THOUGHT ...so a massive physical HQ just wasn’t worth the cost any longer. So REI is selling what they had just built. Other real estate segments falling out of favor - are those high-density places, like you might expect - New York City and San Francisco.  StreetEasy reported that Manhattan home values dropped 4.2% since last year and homes are lingering on the market more two months longer … than they had just last year. San Francisco list prices are down 5% annually, while inventory is up 96%. Yes, a near doubling of available inventory in San Francisco. NYC and San Francisco were already the most expensive housing markets in the country BEFORE the pandemic. And life under lockdown has given people that nudge they had already been considering for years. And then, single-family homes in outlying areas are the real beneficiaries here. There have been a number of notable milestones. COLORADO SFH sales rose 21% July-over-July. The median price statewide in Colorado is now $444,000. Just looking at Denver, Denver just broke the $600K mark for the first time ever.   So, a few months into the pandemic, we’re getting a clearer sense of who the winners and losers are - a lot of them are what we expected.   If I had to slim it down to just a 3-word answer for you on why the rich are getting richer, those 3 words are: Federal Monetary Stimulus.   And the stimulus is disproportionately benefitting … asset owners.   Well, the pandemic hasn’t affected some real estate investors at all. Others, feel more reliant on the next government stimulus program to give their tenants the wherewithal to pay the rent.    Well, if you, as an investor want to have the majority of your rent income payment guaranteed to be made by the government to you over the long-term, well, that’s what landlords of tenants with HUD-funded “Section 8” housing have enjoyed for decades.   You have guaranteed rent income.    I think you remember that I had a turnkey provider that specializes in Section 8 housing here on the show on Get Rich Education Episode 297. So just ten show ago, which was 10 weeks ago.   Like any investment, Section 8 Housing is best viewed through a prism of pros and cons.    Section 8 is not for everybody. Some love it, some don’t … but this provider manages the Section 8 administration FOR you. They’ve got a great relationship with the housing authority.    That’s something that most landlords of this government-subsidized housing never had.    “Guaranteed rent income” has a nicer ring to it than it did just a year ago.   Get the provider report and learn more at GetRichEducation.com/Section8   That’s our Richmond, Virginia provider. In fact, CNBC named Virginia as the most business-friendly state in the entire nation.   I’m Keith Weinhold and I’m coming back to talk to you about inflation.    Again, learn more at GetRichEducation.com/Section8. This is Get Rich Education!   _________________   Hey, you’re back inside Get Rich Education. I’m your host, Keith Weinhold.   Both the pandemic-driven CARES Act, and whatever other monetary stimulus acts that follow … are injections of trillions of dollars into the economy.    In fact, it’s now driven our national debt to nearly $27 trillion dollars.   Of course, this has the effect of … money printing. It’s not literal money printing. The more you learn about it, it’s often U.S. government bond issuance.    A bond really just means that the government issues an I.O.U. that someone else, like China buys.    Those are some of the semantics behind, what we you can really more closely think of as “currency creation” rather than money printing.   Will this result in inflation? That’s the big question. Well, longer-term, many think, “yes”. Short-term, “no”. We are in a low demand environment.   Of course, as a real estate investor, you want inflation. You might have seen on the Get Rich Education YouTube Channel where, I have visually mapped out how you win “The Inflation Triple Crown”.   In fact, if you just Google the three words, “Inflation Triple Crown”, you can probably see me - as the first hit on Google - and you can watch me doing the whiteboard video.   As you’ll remember, real estate investors win the Inflation Triple Crown because inflation provides you with: #1 Asset Price Inflation, #2 Debt Debasement and #3 Cash Flow Enhancement - that all works terrifically when you’re leveraged.   There are more signs of inflation out there in the economy right now than we’ve seen in the recent past. Though I still expect it to be mild as long as we’re in this pandemic-driven low demand environment …   The consumer price index rose six-tenths of one percent last month. That beat the two-tenths expectation that economists had had.    Food are prices up substantially, and then, a substantial input to homebuilder pricing and therefore the future value of homes - is lumber - and lumber prices have been soaring higher.   Treasury Secretary Steven Mnuchin said that the administration is unfazed with these historically obscenely high levels of government spending … thanks to the nation’s very low interest rates.   See, the Fed is less concerned about mounting debt when the interest rate that THEY pay on their debt is low … much like you’re less concerned about your debt when the interest rate is so low - you might be looking to take on more debt now.   Of course, YOU’VE got a better deal on your real estate debt than the Federal Government does, because the Federal Government doesn’t have tenants to service their debt for them like you do in an occupied rental property.    Could America reach a STAGflationary state again like it did in the 1970s? We haven’t discussed the economic phenomena of stagflation before.   Do you know what that is? Stagflation is a stagnant economy with inflation. That’s what it means.   OK, usually a more stagnant economy - like we’re in now - is characterized by low inflation due to lower demand not running up the prices of consumer goods and household staples.   But again, stagflation means that there’s a stagnant economy WITH high inflation. Could THAT happen this decade?    To reinforce your learning here, let’s listen to the audio from this explainer video from One Minute Economics about stagflation.    This is less than a minute & a half in length.    https://youtu.be/YaC_PNKu_Cg   Yes, well, if we get stagflation, meaning again, a stagnant economy that we have high inflation, I don’t know that we’d have another Fed Chief like Paul Voelcker - who, 40 years ago, brazenly raised interest rates so aggressively to combat inflation that mortgage rates were 18% forty years ago.   I don’t know that anyone would prevent inflation from running away at that point.   But again, that’s STAGFLATION.    Now, I know what you might be thinking. Maybe you’re thinking that all of the Fed currency creation to pull us out of 2009’s Great Recession didn’t produce high inflation, so why would it be any different this time, with all these CURRENT cycles of massive dollar creation once again?   That would be a valid thing for you to think.   At least based on the official government numbers, we’ve only had about 2% monetary inflation in recent years.    Well, see. Though high inflation wasn’t the RESULT ten years ago, it might have actually been CREATED and you just didn’t know it. So, here’s what I mean.    Say that the expansion of globalization and technological advancement REALLY meant that we had NEGATIVE 5% inflation - another way to say that is that what if we WOULD HAVE had 5 points of deflation if they’re WEREN’T any excess dollar creation?.   But yet, all of the dollar creation after the Great Recession caused 7% inflation.   Well then, 5 points of DEflation offset by 7% INflation resulted in ... 2% inflation.   Think about it that way. Maybe something like that is what really happened … and that is why all of today’s currency creation COULD result in high inflation. We don’t know that it will. But that’s just one reason why it COULD.   Now, overall, to pull back and look at the state of housing in this pandemic-driven recession.    Housing has been - and continues to be - substantially better off in this recession THAN it was in the 2008 Great Recession - that event - twelve years ago, had a housing COLLAPSE as a driver. People left the keys and walked away from their homes back then.   Now, instead, we’ve got bidding wars for housing.    I want to temper that with a reminder that the pandemic is not over yet, and it could still take an unforeseen turn.   The bad part about this recession is that we’ve got higher unemployment than we did back then.   Now, the reasons that real estate is BETTER OFF in this recession compared to the last one is:   Housing Demand Exceeds Supply - that was in the OPPOSITE state last recession. Responsible Lending Prevailed - again, that was OPPOSITE of last time. We’ve Got Low Mortgage Rates - lower than they’ve ever been.  And We had No “Bubbly” Price Run-up before this recession, unlike what happened in the 2008 Great Recession.    They are … the key differences.    Coming up on a future episode here - we’re primarily a show about how buy-and-hold residential INVESTMENT property produces wealth for you - and how to avoid mistakes.   But so many people are re-evaluating their primary residence situation lately, that, coming up on the show, I’m going to go deep on - “Should You Rent Your Home Or Should You Own Your Home?”   There is some counterintuition and paradox here.    I’m going to give you a new twist on the fact that - if you pay rent, that is NOT The Same As Throwing Money Away     Also, some people seem to think that homeownership is like: "Renting. Except you get to keep it." That is false and that has caused millions of people to buy houses that they later regret.   Is your primary residence an investment? Do YOU consider it an investment? Well, in almost EVERY case it is a poor financial investment, but it could be a good lifestyle investment.    So, “Should You Rent Your Own Home Or Own Your Own Home that you live in.” That’s coming up on a future show.   Well, regardless of your living situation, pandemic-driven unemployment might have made you realize that … you need a durable, long-term 2nd source of income - if you don’t already have one.   Even if you aren’t losing your job, circumstances have hit close to home for a lot of people.    You can either let other people make money off your money, like the bank paying you 1% on your savings.    Or you can make money off OPM (like borrowing at a 5% mortgage to invest at 11% - or hopefully, a lot more than 11% with the (up to) five profit centers that real estate has.)    RE is that instrument of arbitrage.   As they say, you can either teach a man to fish or give a man a fish. Well, why not do both? That IS the abundance mindset afterall.    At GetRichEducation.com, we teach you how to fish.   At GREturnkey.com, we give you a fish too.   What is going on at GREturnkey?   Well, first, get your mortgage pre-approval at a reputable lender that specializes in investment property like Ridge Lending Group.   You’ll see at GREturnkey.com that Birmingham and Huntsville, AL have investor-advantaged numbers that work.   Pockets of Huntsville may have better appreciation if they’re tied to employment in the space industry.    Gosh, love him or hate him, Elon Musk gave us something to actually celebrate in an otherwise tough 2020 as he led the first private company to launch astronauts to space - emblematic of the burgeoning space industry - both Huntsville, AL and Orlando, Florida there at GREturnkey pick up on some of that.   We just discussed Chicago here last week. Chicago and Dayton, Ohio are two markets that keep sourcing existing inventory that they beautifully renovate, and both markets have rent-to-price ratios that are typically OVER 1%.   When you’re over 1% and mortgage interest rates are this low, it makes your affordability as an investor REALLY advantageous. That’s Chicago and Dayton.   Des Moines, Iowa is sourcing a little inventory lately - not as much as some of the other providers. That’s a stable place.   Florida is a bright spot for new construction turnkey property - Jacksonville, Tampa, and the aforementioned Orlando all sourcing brand new construction property.    When it’s NEW construction, your insurance cost is often really low too.   Memphis, Tennessee and Little Rock, Arkansas are both the SAME provider there at GREturnkey - and that provider name is MidSouthHomeBuyers. There you have lower price points and MidSouth Home Buyers is so good with beginners.   And then, Oklahoma City - the numbers work and some media outlets have named Oklahoma City as the most recession-resistant market in America. You’re getting a 1% rent-to-price ratio there too.   Finally, Richmond, Virginia - I mentioned them earlier. They specialize in knowing the ways and means of how to optimize Section 8 tenancies because they have a great relationship with the housing authority there.    Most, or really all of these markets that I mentioned are in the United States Midwest & South.    Florida - oddly enough - is not culturally the South - though it’s the most southeastern state there is - their history of net-in migration makes them culturally disparate from what we think of as the south, but …   … all these markets I mentioned are in investor-advantaged metros where you generally have more stable prices, and landlord-tenant law that favors your rights moreso than the tenant’s rights.    So these markets are hand-chosen pretty carefully for you.    Once you’re pre-qualified for a loan, find all those providers & a few more at GREturnkey.com.   I am honored because you have given me something … and that is that I have had the privilege of having your time today.    Until next week, I’m your host, Keith Weinhold. Don’t Quit Your Daydream!

You contribute to homelessness. I do too. The problem goes right through real estate. Factors include: NIMBYism, minimum wage, salamanders, smoke detectors, and rent control. (Complete transcript on homelessness segment below.) Then, Chicago is a world class city with lots of economic diversification. Chicagoland’s numbers make sense for real estate investors. In northwestern Indiana (suburban Chicago), you avoid the high cost of Illinois property.  A typical SFH has $1,350 rent and a $125,000 purchase price. If you’re serious about building your cash-flowing portfolio, learn more and see property at: www.GetRichEducation.com/Chicago Resources mentioned: Chicagoland turnkey property: www.GetRichEducation.com/Chicago Environmental regulations & housing: https://www.huduser.gov/periodicals/cityscpe/vol8num1/ch5.pdf NIMBYism: Reason.com Mortgage Loans: RidgeLendingGroup.com QRPs: text “QRP” in ALL CAPS to 72000 or: eQRP.co By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. New Construction Turnkey Property: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Top Properties & Providers: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold   Welcome to Get Rich Education! I’m your host, Keith Weinhold, with a two-part show. Real estate is a substantial input into homelessness. Why are people homeless - and why might you & I be partly RESPONSIBLE for it, in fact?   The second part - in general, world class cities don’t make any sense to invest in for cash flow - New York, LA, DC, London, Singapore … but we’re going to discuss one “world class” city that actually DOES. Today, on Get Rich Education. __________________   Here it is - hey! You’re inside GRE. From Sarasota, Florida to Sarajevo - in Bosnia and Herzegovina - and across 188 nations worldwide.    I’m Keith Weinhold, this is Get Rich Education.   Even in the affluent United States, there is a large and growing population of vagrants - homeless people … more than half a million of them … and you & I … unknowingly play a role in keeping them homeless.   Why are people homeless? Well, the #1 reason is real estate-related. So that’s why I’m talking about it in the first of two show segments here.   Let’s look at the Top 5 cited reasons that people are homeless.   5th most common - Substance abuse - drugs. 4th - Mental illness. 3rd - Poverty ...OK, that’s sort of an obvious one. 2nd - Unemployment 1st - Lack of affordable housing   Lack of affordable housing is the #1 reason that people are homeless. Well, one mission here at GRE is that we PROVIDE society with affordable housing.   But, it’s generally not the same kind of Class D, lowest-end housing that there is - and that homeless people are looking to get into.    We focus on properties just below the median housing price in some of the lower-cost U.S. metros - B-class and C-Class. That’s a notch or two above where those on the brink of homelessness would be.   The homeless population is more visible in my own home city since the pandemic - and perhaps yours too … now that the unemployment rate is 10%.    I’m going to tell you what contributes to homelessness - and a lot of this has to do with real estate: contributors are carbon monoxide detectors, minimum wage, salamanders, NIMBYism, and over the long term: rent control.   Now, before we unpack that. Let’s define homelessness.   One of the better accepted definitions is - a condition where people lack "a fixed, regular, and adequate nighttime residence". That’s “homelessness defined”.    I think you & I can agree that “homeless” is not the best technical term - right? Because even if someone lives under a bridge, that IS their home.   Houselessness would actually be more accurate.   Vagrancy is an even better way to say it. A vagrant is a person without a settled home or regular work who wanders from place to place and lives by begging.   That’s what we’re really talking about here. But homelessness is the widely understood term, so I’m going to it.   Now, HUD - the U.S. Department of Housing and Urban Development has a lot of statistics on the homeless, and ...   … as of 2018, they reported there were roughly 553,000 homeless people in the United States on a given night,[2] or nearly two-tenths of 1% of the population.    That’s about 1 in 500 Americans then. Well, many people - me included - believe that the real number of homeless is greater than this 553,000.   In fact, private & local reports tell you that the homelessness have increased 40% per annum in recent years - yeah, 40% per year!   A big mistake is that people think about the homeless as all one type. But there are so many different types of homeless.    There are the temporary homeless -  passing through that 553,000 number.   Some are voluntarily homeless. Others are really couch-surfing because perhaps they were in a divorce or domestic violence situation.   Then you need to realize that about 2/3rd of their population is sheltered, and ⅓ unsheltered.    Consider too, that there are at least 40,000 homeless veterans. To think that a person could have served this country - and maybe even risked their life for this country - but don’t have a home in this country … can be heartbreaking to think about.   Now, though I’m not sure, I don’t believe that a digital nomad would be considered among the homeless - the laptop entrepreneur that stays at a different AirBnB location, say monthly.      Before we bring in the real estate angle, let’s get some historical context. Just talking about the U.S. here ...   Homelessness emerged as a national issue in the 1870s.[6] Early homeless people lived in emerging urban cities, like New York City.    Into the 20th century, the Great Depression of the 1930s caused a substantial rise in unemployment and related social issues and distress and homelessness.    In the 21st century the financial crisis of 2008 and resulting economic stagnation and downturn has been a major driving factor and contributor to rising homelessness rates.   That is probably happening again, right now, in the COVID pandemic.   A Zillow report found that people in communities where the average renter spends more than 30 percent of their income on rent — meaning that they can be described as being “rent-burdened” — are particularly vulnerable to rapid increases in homelessness rates.   Eviction obviously creates homelessness.   Now, some naively think - can’t we just raise taxes to build permanent housing for them & move them all in there? I really doubt that that’s a viable long-term solution.    Because at some point, if taxpayer funded housing is just “provided” for people, then people don’t have incentive to work & pay the rent.   That’s in general. Right, maybe someone has a disability that prevents them from making a living.    Some think - maybe we SHOULD impose rent control. Rent control means capping the amount of rent that a landlord can charge.   I’ll tell ya - that could reduce the number of homeless people in some areas that HAVE enough housing. But long-term, rent control is a terrible plan.   Because now an income property owner like you has zero incentive to improve the property any longer.    Long-term, rent controlled areas fall into serious dilapidation.    And because homelessness is concentrated in inner cities. It’s those exact same big cities - like New York - that have tried rent control.    It doesn’t work. So many areas that have tried to impose it, have to repeal it, because it eventually turns areas into ghettos.   What if you own property in an area where rent control were imposed? Even if you did improve your property - not only would you NOT get more rent for it - but you had better believe that property owners all around you wouldn’t be improving their property … and the entire condition of the neighborhood would be on a loooong downhill slide.   You might remember that I devoted an episode to the rent control topic. You can look that up on Get Rich Education Episode 192 if you’re further interested there.    One factor that contributes to higher housing costs - which prices people out of having any shelter and creates more homeless people are … environmental regulations that limit development in certain areas.   Sometimes you need to leave a development buffer for streams or you can’t build in areas that are wetlands in order to protect flora and fauna.   A rare orchid, or a spotted salamander or a threatened egret or an endangered heron. They say, you can’t build in their critical habitat areas. You’ve got to protect them.   But yet, often, the same type of people that want more environmental regulations are the same people that say that they want more affordable housing options.   Well, when you limit where you can build, now you’ve reduced the housing supply. Real estate pricing is highly susceptible to supply/demand factors, of course.   All these wildlife protections limit supply. That makes prices go up. That prices people out.   Now, maybe you’re thinking I’m anti-environmentalist? No, I’m not taking a side either way.    It’s just that one needs to understand the cost and the longer-term ramifications of decisions that limit development in protecting the spotted salamander.    I think it’s easy to make a case that more biodiversity is better than less biodiversity. But the better question is: “At what cost should we protect species? How far do we take it?”    Environmental regulations in the United States are intended to improve the quality of the environment; preserve ecosystems - that includes wildlife; and protect human health too.   But these regulations are often written without considering how much they will cost.   Another contributor to homelessness is excessive safety regulations.   Again, some safety regulations are good. But how far do we take it?    My gosh, when an area needs to build more affordable housing for people - which is something that would reduce the homeless rate … and ...   Sheesh, a new home today might need fourteen smoke detectors and five carbon monoxide detectors … then the detectors need to be connected to each other so that they can communicate with each other … and all these devices and this added complexity increases the cost of housing.   That makes mortgage payments higher, rent payments higher, and it just prices more people out of the real estate market. The lower end of the income spectrum gets priced out of affordable shelter.   I’m not anti-safety. But at some point, one has got to ask the question, “How much safety do we really need?”    Even - “What is the cost of a human life?” There actually is an answer to that question. In fact, the EPA pegs the cost of a human life at $10M - one of the highest of any federal agency.     And then, there’s the entire question of how can you ever monetize the value of a human life. You can make the case … that it’s priceless. That’s a different discussion.      But the point is, all these safety regulations increase the cost of housing and increase homelessness.   Minimum wage does, in many instances, increase homelessness long-term.    This might come as a surprise to you. You would think that raising the minimum wage would have to DE-crease homelessness - because a higher wage would mean that low-income workers could now afford housing.   Well, long-term, besides higher wages in an area creating inflation & soon making the cost of everything go UP - including housing …   Think about it from the perspective of if you’re an employer & you have to pay your workers a higher wage - now that minimum wage is higher.   If someone that works for you makes $9 an hour - but they only produce $12 an hour worth of productivity for you...     And a new minimum wage of $15 an hour is implemented, you’re losing money if you retain that worker. So you would lay them off.   You would find ways to automate - or make a machine do the work that that employee used to do for you. That layoff increases homelessness.   Just look at the number of self-serve checkout kiosks in grocery stores. Those lanes used to be staffed by humans that earned a wage.   With a hike in the minimum wage up to $15 an hour, you’d begin to see a trend where more fast-food restaurants have self-serve kiosks. You’ll have fewer humans there.   That’s because some employers can’t afford to pay people $15 an hour. Every self-serve digital kiosk that you see represents a laid-off worker.   Talk to your parents or grandparents and they’ll tell you that gas stations used to be attended by humans that would pump your gas for you, check your tire pressure, check your fluid levels - that’s been gone for a couple generations.   Now, an increase in the minimum wage would help get some people out of homelessness short-term … yes.    I’m giving you insight so that you can see both sides & see the long-term consequences of government intervention into the free market.   Let’s say that you’re an employer at a warehouse, the minimum wage is $15 an hour and you want to hire someone to help you sweep floors & do odd maintenance jobs around this warehouse that you own.     Well, now it’s illegal for you to hire them at $12 an hour. You’d love to give a kid a job and help him learn - and you can’t make the numbers work at $15 an hour.    So now he’s unemployed because the government said, “No. You can’t hire him at $12 an hour.” That’s what a $15 minimum wage says. Try looking at it from that angle.   Another phenomenon that keeps people homeless is NIMBY - Not In My Backyard.   NIMBYists are the ones that say, “No, I don’t want you to build low-cost housing in my neighborhood, because I’m afraid that it’s going to ruin the character of my neighborhood and it’ll stifle the rate of home appreciation here.”   Lafayette, California is a wealthy San Francisco suburb. It is nestled in Contra Costa County, where its residents fight to stop what they call a "very urban," "unsightly" 315-unit housing development    It was recently profiled by The New York Times.   Over in the suburban community of Cupertino, California—we’re talking Silicon Valley now—local activists spent years trying to stop the development of an abandoned mall into apartments, half of which would be rented out to lower-income tenants at below-market rates. In  Berkeley, California, activists often argue against new housing on the grounds that it will threaten their community's sustainable character. Well, what is another example of NIMBYism?  At a recent Zoning Adjustment Board Meeting in Berkeley, I think one resident summarized NIMBYism really well - and this was published in the New York Times - they said "Berkeley needs to prioritize a livable, sustainable environment for people who already live here” … … when they were opposing a 57-unit development of student housing. They went on to say: "We are not obligated to sacrifice what is best about Berkeley to build dorm rooms." That’s the end of what they said. NIMBY - this “Not in My Backyard” opposition to new housing development - centers on concerns of property values and crime and gentrification and environmental sustainability.  Even though it’s often not their intent, the result of NIMBYism is that less housing gets built, housing costs go up and homelessness … rises. So, let’s draw some conclusions here and look at some actionable ways that you can make things better.   Though it isn’t immediately apparent - carbon monoxide detectors, minimum wage, salamanders & egrets, rent control, and NIMBYism - all go right through the heart of real estate investing and contribute to the long-term cycle of homelessness.   A giant takeaway for you here, is that, what is the common denominator in ALL of these factors. There is one common theme.    You know what that is - it is Government intervention.   Government intervention and interference in the free market - is the contributor here - excessive safety, minimum wage, protecting salamanders & egrets, rent control, and NIMBYism.    Every single one of them.    And now, maybe if you’re a new Get Rich Education listener - especially - you might be wondering, am I some anti-government guy where I think that the answer to EVERYTHING is free market economics.   Well, though I think that less government would be better.    I’ll tell you that SOME government regulation is good - just less than what we have now.    For example, look at all the smoky, hazy pollution in Pittsburgh, PA in the 1970s. It was a hazard to your health just to walk Pittsburgh then.   You might have heard about this: famously, in the summer of 1969 - An oil slick in Ohio’s Cuyuhoga River caught on fire.   Companies were committing rampant pollution such that it was a hazard to human health. Well, government regulations like the Federal Clean Water Act Of 1972 helped to clean that up.   So, that regulation helped. Government has a role, but it’s often overly intrusive.   When it comes to you helping the homeless directly, I like the campaign slogan that says, “Give real change, not small change.”    That means, don’t give money directly to panhandlers on the street. Where do you think that your goes then? Probably straight to cheap monarch vodka in those plastic bottles.   Also, if you don’t want to see homeless people in your neighbourhood, don’t give to them if they’re on your city’s street corner - like they are mine - because you’ve just given them an incentive to show up there again & do the same thing.   So instead of small change, give real change. When you donate to your local homeless shelter or soup kitchen, your money is going to do MORE REAL GOOD for the homeless.   It’s going to provide them with shelter, or educational resources, or a computer so that they might be able to apply for a job. That’s real change.   You want to help the homeless? I think that’s great. That’s kind. Give real change, not small change.   When it comes to NIMBYism and the environment, there’s a great saying out there.   What do you call a developer –  someone who wants to build a house.  Well, what do you call an environmentalist – someone who already owns the house, [LAUGHING] because they don’t want anyone else to build there, right?   Well, we avoid investing in coastal areas here at Get Rich Education. They’re what I call the volatile markets - they have a history of more regulation, more rent control, and more laws that are disadvantageous to property owners.   Just more reason … as to why we invest in the U.S. Midwest & South. They’re what I call the stable markets.   You’re listening to Get Rich Education, Episode 306.   We are your source for independent groundbreaking, original content on really three main topics: real estate investing is what we major in - with minors in both wealth mindset, and real estate economics.    Get Rich Education is not affiliated with any large media conglomerate.    And we’re here to enrich you - and sometimes even rescue you & help you survive in this widening difference between the “haves” and “have nots” - that continues to broaden in pandemic times.   This show is also when you can find all your finance heroes - that have come onto the show to run alongside me for an episode.   Check our shows published over the years to find me here with the best-seller finance author of all-time Robert Kiyosaki, the world’s leading sales trainer Grant Cardone, global wealth mindset magnate T. Harv Eker, and other economic minds and thought leaders Jim Rogers, Jim Rickards, Sharon Lechter - all your favorite thought leaders are here on this show.   We have more of them coming onto the show in the future, including the upcoming Get Rich Education debut of success thought leader Hal Elrod and others.   There is so much real estate & economics news that the pandemic is providing to us ... more & faster than before.   We bring you that here. Also, be sure to subscribe to the DQYDD Letter. That’s our wealth-building email letter that you can get at GetRichEducation.com   A lot of times, I can write you something in the letter faster than I can get it out here on our weekly show. Yes, I do write the letter myself - and email it directly to you.   Never any spam - never sharing your email address with others, of course.   Also, would you like to join me on a live webinar? We’re looking at doing some of those soon. Look for those announcements - in the Don’t Quit Your Daydream Letter as well.   Information, actionable resources, and education -     Get ahold of that completely free - at GetRichEducation.com   Again, What do you call a developer –  someone who wants to build a house.  What do you call an environmentalist – someone who already owns the house.   Kind of exciting next - A world class city where the real estate numbers actually make sense for you … straight ahead.   I’m Keith Weinhold. This is Get Rich Education.

Today, we're talking about an alternative retirement investment tool other than the 401k or self-directed IRA. Our guest has been a professional investor for more than 20 years with the purchase of his first rental house he charged on his VISA. That move snowballed into 150 rental houses in less than 5 years. Like everybody else, he lost big time in the 2008 economic crisis. But, in just less than five years, he reclaimed his wealth, and now, he is on his mission to free 1 million people from the shackles of financial bondage. Damion Lupo is a professional investor and best-selling author of 10 books on personal finance, investment, and retirement strategies. He pioneered over 50 companies including the eQRP® - the ultimate investor retirement tool that allows individuals to take control of their retirement money and invest it in real assets like Real Estate, gold, and crypto WITHOUT GETTING HIT WITH UBIT. Interesting fact, he also founded his own martial art, Yokido®. Damion and I talk about his beginnings, the challenges he faced, lessons on investing he acquired over the years, and how he created eQRP® as a retirement investment option for everyone. He also shared how this financial strategy works, its difference with 401k and IRAs, how to set it up, and who are those qualified to avail of it. Find complete show notes and more information at therichergeek.com/podcast

GDP fell 33% annually, the unemployment rate is high, and even the Tokyo Olympics have been postponed, all pandemic-driven. Housing continues to hold up well. Nearly all assets are - gold, stocks, crypto, and some commodities. This is partly due to a weaker dollar. The gap between “haves” and “have nots” widens in the pandemic. 15-year mortgage rates fell below 2%. VP of Grocapitus, Anna Myers joins us to discuss real estate trends, market analysis, and where to invest for economic survival. Neither she nor I see a “V-shaped recovery”. I’ve been saying this for five months. Anna & I discuss real estate’s winners and losers in the pandemic. With more people having shakier job situations, fewer qualify for loans. This increases the renter pool. Winners: smaller cities, suburbs, e-commerce, tech, warehouses, places like Salt Lake City, Raleigh-Durham, Memphis Losers: high density places, hospitality, medical, oil, long-term college. Resources mentioned: Grocapitus.com MultifamilyU.com https://www-housingwire-com.cdn.ampproject.org/c/s/www.housingwire.com/articles/uwm-now-offering-15-year-fixed-mortgage-rate-as-low-as-1-875/amp/ Mortgage Loans: RidgeLendingGroup.com QRPs: text “QRP” in ALL CAPS to 72000 or: eQRP.co By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. New Construction Turnkey Property: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Top Properties & Providers: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold

Income over $75K-$95K does not increase happiness.  Earning over $105K actually decreases happiness. This is based on studies from Princeton and Purdue universities. Then what’s the point of building wealth? You get answers. These surveys do not consider replacing your active income with passive income.  Matt Bowles of Maverick Investor Group joins us to discuss: market due diligence, pandemic changes, and how to use real estate to build lifestyle design. We also discuss changes to the rental market from 2007 to today. Ten years ago, you could buy properties for less than replacement cost. No longer. Markets like Phoenix, Dallas, and Atlanta have largely lost their investor-advantaged status. Check out Matt’s podcast, called: “The Maverick Show”.   Resources mentioned: How Money Really Affects Your Happiness: https://www.cnbc.com/2020/05/26/how-your-salary-and-the-way-you-spend-money-affect-your-happiness.html Maverick Investor Group The Maverick Show: Podcast on Apple Podcasts, Spotify, etc. Remote due diligence: WeGoLook.com NeighborhoodScout.com Mortgage Loans: RidgeLendingGroup.com QRPs: text “QRP” in ALL CAPS to 72000 or: eQRP.co By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. New Construction Turnkey Property: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Top Properties & Providers: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold  

We compare do-it-yourself vs. professional property management. New home price annual sales volume spiked in June. There’s a scarce inventory of suburban SFHs. The co-founder of Avail, Laurence Jankelow joins us. Avail.co streamlines life for DIY property managers. Avail is free. It enables you to centralize your: rental listings & applications, tenant screening, credit / criminal / eviction reports, rent collection, maintenance tracking, and even rent price analysis. Becoming a landlord is like becoming a parent. There’s no certification course or degree required. You cannot violate Fair Housing Laws. Giving one tenant a break - and not another - could violate Fair Housing Law.    Smart home technology often still does not exist for the most profitable long-term rentals. Rent collections during the pandemic continue to be greater than most people anticipated. Avail is best for landlords with 1-9 rental units. There is a general minimum standard for what landlords must furnish to tenants. It’s called an “Implied Warranty Of Habitability”.  This includes: access to clean water, heat, electricity, sanitation, rodent-free, fire-safe, and meets local building codes. Resources mentioned: DIY Property Mgmt. Software: Avail.co New construction Florida income property: GetRichEducation.com/Orlando GetRichEducation.com/Jax GetRichEducation.com/Tampa Mortgage Loans: RidgeLendingGroup.com QRPs: text “QRP” in ALL CAPS to 72000 or: eQRP.co By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. New Construction Turnkey Property: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Top Properties & Providers: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold

Learn how real estate pays you up to five ways simultaneously. Should you be playing offense or defense as an investor now? Learn how a return of less than 20 to 25% is disappointing. We’ll add up all five ways you’re paid and see what your Year One return is from: Appreciation, Cash Flow, Return On Amortization, Tax Benefits, Inflation-Profiting. See brand new construction SFRs and duplexes in central Florida at: www.GetRichEducation.com/Orlando Central Florida rent-to-price ratios are about 0.8%. Interest rates are at historic lows. What does late rapper Notorious B.I.G. have to do with real estate investing? You’ll see today. Kind of.  **Complete episode transcript below. Read along as you listen.** Resources mentioned: New construction Orlando income property: GetRichEducation.com/Orlando Mortgage Loans: RidgeLendingGroup.com QRPs: text “QRP” in ALL CAPS to 72000 or: eQRP.co By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. New Construction Turnkey Property: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Top Properties & Providers: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold   Welcome to Get Rich Education. I’m your host, Keith Weinhold. There are seasons in your investor life where you either play offense or defense. What should you be doing now? … as we refresh the “Up To 5 Ways That Real Estate Simultaneously Pays You.”   Anything less than a 20 to 25% rate of return in buy-and-hold real estate investing is disappointing. How can that be? Today, on Get Rich Education. ______________________   Welcome to GRE! From Asmara, (Air-UH-tree-UH) Eritrea to Ashtabula, OH and across 188 nations worldwide. I’m Keith Weinhold. This is Get Rich Education.   Thanks for being here, but you’re not here for me. You’re here for you.   In your investor life, are you playing offense? Or are you playing defense right now?   Or, in general, longer-term, are you a more offensively-oriented investor, which correlates with more risk-taking for higher returns.   Or are you more defensively-minded - where you’d rather have less risk and lower return?   Are your mindset and actions aligned toward offense or defense?   Well, I’ve got an answer for you here, and you’re going to have a really valuable takeaway.   Anything less than a 20 to 25% annual rate of return in real estate is really … actually … disappointing.    “What choo talkin’ ‘about, Willis?”   What I’m talking about … Will - is ...    Really, this all comes back to how - when you buy income property the right way - you are paid up to five ways simultaneously.   A stock typically only pays you one way, perhaps two.   I think that the easiest way for you to understand the five ways you’re paid - and even celebrate these five ways you’re paid - because … this ... is ... pretty compelling - is to use an example.   I’ve discussed this before. So if you’re a longtime listener, I’m going to put “The 5 Ways” through a new filter for you.   And if you’re a newer listener, say in the last year, this could completely change your investing thought paradigm for the rest of your entire life.    In fact, compound interest is lame and rarely, if ever builds real wealth in real life. I’ll tell ya what does here.    And yes, I know that this is abject heresy. It is replete blasphemy to criticize “compound interest” in the finance world.    I am surely guilty of committing financial profanity right there.   This is really fundamental stuff I’m about to share with you here - and yet the real paradox is that most real estate investors don’t even understand this.   This is pretty fun to do. We’re going to add up the five ways you’re paid and determine your total rate of return here.   Let’s say that you purchase a $100,000 property - $100K. And, no worries, if that’s too “small time for you”, this is all based on ratios, so it scales up to a $1M or $10M property.   (Ha!) And sometimes I wonder how much longer a $100K property will even be a feasible example as inflation makes $100K properties less common all the time.  But with your newly-bought $100K rental single-family home, you buy it with a tenant already residing there, where the monthly rent income exceeds the monthly expenses - that’s a big part of “buying right”.    With your 20% down payment, you have $20K out of pocket then, and an $80K loan.   The first of five ways you’re often paid is ...  1 - Appreciation Let’s just say that your property appreciates from $100,000 to $106,000. That is just commensurate with real estate’s historic appreciation rate of 6%. But here’s the big “a-ha” moment.    Your $6,000 gain is based on only your $20,000 down payment.  Well, that’s your ROI formula - your gain divided by how much you have invested. Well, your $6K divided by $20K is a 30% return to you. Really? How did that happen exactly?   How do you have a 30% return from just this first of five ways you’re paid?    This is because you achieved a 6% return on both your $20K of skin-in-the-game and the $80K borrowed from the bank. This is what is known as financial leverage. Financial leverage means that your return is 30%.    No wonder that I’m known for saying that compound interest is lame and leverage builds real wealth. More on that soon.   2 - The second way you’re simultaneously paid is with Cash Flow It’s your monthly rent income minus all the expenses (like mortgage, vacancy, insurance, maintenance, taxes, utilities, management). We’ll be conservative and say that leaves you with only $100 of residual income in this case.   Annually, that’s $1,200 more for you, divided by your $20,000 down payment.    Yes, it’s $1,200 still divided by that same $20K of skin you have in the game.    This another 6% return for you. This portion is what is known as the Cash-On-Cash Return.    So, so far you’ve got a 30% return from leveraged appreciation PLUS a 6% cash-on-cash return from that monthly cash flow & we’re still going.   3 - Loan Paydown Unlike your own home where you pay down your principal mortgage balance with money that you had to earn, well, here, your tenant pays the monthly principal portion of your $80,000 loan on this property!    At a 6% interest rate (and you know you can do better than that today, but we’re being conservative here) on a 30-year mortgage, that’s about $1,000 that the tenant pays down your loan for you annually.    Divided by your (still the same) $20K of “skin-in-the-game” means that’s ANOTHER return for you of: 5%. This portion is known as your ROA - your return on amortization. We are still going - still adding up all the ways you're often paid in real estate.   4 - Tax Benefit You can have a mortgage interest deduction, an ability to pay zero capital gains tax with a 1031 Exchange, and tax depreciation - which can tax-shelter part of your rent income.    This is hard to measure. We’ll conservatively call your investment tailwind another 5%. There’s something else called “bonus depreciation” that can certainly make this 5% tax tailwind higher, but let’s just leave it there.   And the fifth and final way is what I call Inflation-Profiting. Few people understand this.    Like inflation erodes the value of your lump of savings, it also degrades your mortgage debt balance.    How is that? It’s because your $80,000 loan today gets easier to “pay back” as wages and prices escalate over time. Your bank only asks to be repaid in nominal dollars (while your tenant pays the interest), not real, inflation-adjusted dollars.    So just say that over a few years, you had 10% cumulative inflation. Well, then rather than paying back the bank $80K, you really only need to pay them back $72K in inflation-adjusted terms.   Inflation has been low lately. We’ll call this benefit a return of another … just 2% to you.   Well, there were all five ways. Let’s add them up to see what your total rate of return is. You got a return of:   30% from leveraged appreciation, then… 6% from cash flow - which is that portion known as your cash-on-cash return, plus another 5% from your ROA - that Return On Amortization, where you tenant pays down your loan for you. Then another … 5% from tax benefits … 2% from inflation-profiting ...   And your first year total Return On Investment from this income property is 48%   You just achieved a 48% return - and without taking any INORDINATE risk. Now, your real-life return probably won’t be exactly that - it’ll be higher or lower.   A few other caveats here. I think you probably realize this example is simplified.    If we had 18 spreadsheets, then we could probably get an exact number, like rather than a 48% total rate of return for you - then it might be 46.16% or something like that. …   … but eighteen spreadsheets doesn’t work in audio format as we’ve just broken it down here on Get Rich Education Episode 302.    1) Note that in the example, we did not factor in your buyer mortgage loan closing costs (the seller can often help you pay these).    Of course, risk still exists. If you buy property in a losing job market, or hire a disreputable property manager, for example, your return can erode.    3) You will still have SOME inevitable problems along the way. It just happens in real estate.   Also, note that your property insurance premium WAS considered in the example. That hedges you from a lot of major loss types.   And that your management cost was considered here, meaning your income is largely passive.    Also, be mindful that after your 48% return in Year One of this hypothetical example, your return typically DROPS in future years.    Maybe it’s down to 38% in the second year and 29% in the third year.    Why is this? Well, primarily due to the fact that equity accumulates in the property, and equity has zero rate of return.   Compound interest? Well, you’re typically not leveraging other people’s money with compound interest.    In the example we used - you’re not just growing from the return on your own money.   You achieved that return because you got to use BOTH your own money plus three other parties’ money at the same time:   the bank’s for the leverage   the tenants for the income and the return on amortization … and    … the govt’s for the tax incentives - plus, really the government’s policies for the inflation-profiting benefit too … if ya think about it.   With just a 20% down payment, you got access to getting the return on OTHER people’s money all over the place.    Another risk is to be mindful of overleveraging. Overleveraging means that you’ve borrowed so aggressively that, say you get in a situation where the tenants rent income no longer meets or exceeds the monthly property expenses.    That’s negative cash flow from overleveraging.   With these five ways ...   Now you understand how real estate makes ordinary people wealthy!   Now you know how to actually “keep score” with real estate investing.   Now you understand how less than a 20-25% Total Rate Of Return is disappointing.   This is LEVERAGE rather than compound interest.   Long-term, one’s hopes for compound interest get eroded and worn down to nothing after applying - something that longtime listeners can almost repeat after me - applying those deleterious effects of inflation and emotion and taxes and fees and volatility.    If you understand what I just described, you understand something that Billionaire RE investors do NOT understand.   Billionaire real estate investors don’t understand what you now know.   So, when it comes down to, are you playing offense or defense as the theme for your own investing strategy?    The answer is, when you’re paid five ways, you have the ability to constantly do BOTH - you’re playing both offense and defense - at the same time, all the time.   By the way, they say that offense wins games but defense wins championships. It was legendary Alabama football coach Paul “Bear” Bryant that’s credited with saying some version of that.    I don’t know whether that’s so true or not, but here you have multiple offenses and defenses.   But what I’m talking about here, is, with the 5 ways you’re paid:   Appreciation - That’s playing offense Cash Flow - That’s more predictable than appreciation, and that’s playing offense too Return On Amortization - That’s defense. It’s slow, predictable, and it builds illiquid equity The fourth way, taxes - that’s defense too. It’s kind of built-in, predictable, and really just recurs when you do your annual taxes. And the fifth way, inflation-profiting - That’s defense too.   So, there you go, with one single-family rental home or apartment building, you’ve played offense two ways and defense three ways … all at the same time.    And when you’re paid five ways, if one or two stop providing you with yield, well, then you’ve still got three or four ways that are.   But, yeah, these return sources aren’t apparent to a lot of people.    You know, I was recently doing a review of one of my larger apartment buildings with an experienced investor, because the cash flow basically dried up.   And, for example, this apartment building has $2,100 of tenant-made mortgage principal paydown every month. That’s $25K per year in equity buildup.   $25K divided by my $475K in equity is a Return On Amortization of about 5% on this particular apartment building.   So I think that the real takeaway here is - invest in something where you’re paid multiple ways, where you can invest in offense & defense at the same time, and it pays you income so that you can begin enjoying your life now, not “maybe someday” - which correlates with more of a compound interest approach.   If you think about it, a central theme of this show is how to optimize the 5 Ways You’re Paid - and avoid mistakes.   This is really a huge part of the compelling “why” for real estate that is so often missed.   You want to own the real property yourself to make sure all five of these benefits aren’t diluted.   You also want to be sure to have a good loan on your property to amplify your ROI over the long-term.   As you know, I am “pro-good debt”. I have no interest in paying down low interest rate debt, that the tenant pays down for me and inflation even further debases.   Instead of using that dollar to pay down debt, you could use that dollar as a down payment on another property - expanding your empire.   Gosh, with interest rates this low, it puts an exclamation point on the fact that you don’t want to be paying down your debt … here in the early 2020s decade.    Paying down good debt is one of the last things that I would do with my money. You lose leverage every time you do that.   Turning a liquid dollar into equity just transferred cash into equity.   Financial freedom achieved when you do the opposite - when you transfer equity into cash flow.   The probability that I’m going to wake up tomorrow and start accelerating paydown on low-rate, fixed mortgage debt tied to this cash-flowing property - is about nothing.   It’s about the same as the chance is that my Dad wakes up tomorrow and starts listening to the Notorious BIG with Junior MAFIA.   “I chill … “ to “ … you know”.   Haha! Yeah, not happening!   Not for my Dad, anyway. Not his style. Sounds alright to me. I might drop that in during a workout or something.   You’re listening to a more detailed discussion about the Five Ways That Real Estate Pays You and we’re talking about it through a fresh lens of “offense vs. defensive” investing here on Get Rich Education Episode 302. I strongly believe: It is very difficult to get wealthy without debt. Often won’t achieve freedom without debt. It’s going to be alright ... when your debt is reliably outsourced to others.   You know, at one point in my life, when I still worked for an employer. (The last day job I ever had was working in the QA section for a state DOT, by the way).   At one point, I realized that every dollar I lock in a stock or 401(k) is a dollar that I can’t use to leverage OPM. That epiphany was a real turning point.   Checking the RobinHood app every 15 minutes isn’t going to build real, durable wealth for you.   And, sometime before that, it was the realization that for me - and for you - to get more out of life, you can’t live below your means, you’ve got to expand your means.   To achieve financial freedom, it sure isn’t going to happen by cancelling Netflix $10 for month.   That’s not going to happen if you save $80 on air tickets by adding an extra layover on your trip itinerary. You just added three hours of low-quality time to your life - and you’ll never get that time back.   That’s cheesy. That’s unattractive.   It’s not about saving money on your Butterball turkeys or car gasoline.   I’m not saying you can NEVER do those things. Sometimes you gotta do what you gotta do.   But people need to stop being congratulated for being cheap or even focusing on frugality. Gosh, that stuff can make people miserable.   People that say, “I want to live frugally.”, they don’t REALLY want to live frugally. They actually want to say, “I want to live well.”    But they don’t know how to do that. They don’t have a vehicle to move forward with.    It’s kind of like, when we had T. Harv Eker here on the show here a few years ago - it’s about setting your mental thermostat higher, so that you can get greater wealth & freedom for yourself …   And with the “five ways you’re paid” like I described earlier, hopefully, I’ve charted a substantially clearer path forward for you so that you can do that.   Well, with “The Up To 5 Way That Real Estate Often Pays You”, that’s something that I first started talking about more than five years ago. I’ve never heard anyone else talk about it before. So, as far as I know, I guess I’ve “coined this” or whatever.   But since I began talking about it, I hear other people talking about it too - even other educational platforms.   Now, I do own three real estate trademarks, so what do I think about OTHERS now teaching the “5 Ways You’re Paid”. I’ll discuss that in just a few minutes here.   I’m also going to discuss who influenced ME - and give them some credit. And this includes a couple people that you’ve surely never heard about before.   If you would like to see the “5 Ways You’re Paid” in one easy-to-read infographic - that all fits on one sheet - so that it’s REALLY cear to understand - I’ll send you a colorful electronic “5 Ways Infographic” all you’ve got to do is go to GetRichEducation.com/Book.   That’s got to be one of the greatest deals anywhere. That’s where you can opt-in to get the electronic version of my int’l bestselling book, free, emailed right to you.   Then a few weeks later, the “5 Ways You’re Paid Infographic” is automatically sent to you too.   That’s at GetRichEducation.com/Book   More next. I’m Keith Weinhold. This is Get Rich Education. ________________________   Welcome back to Get Rich Education. I’m Keith Weinhold.   Hope you like our humorous moments to lighten up the show here. Hey, you run a little math on audio and … it begs for some embellishment to spice things up.    When it comes to the up to five ways you’re paid in real estate investing. Yeah, since I first discussed this more than five years ago, I’ve noticed that other REI educators now teach the same thing.   I don’t know whether they credit that to me or not - and you know what - I don’t really care whether they do or not. I mean, it’s cool if they do, but …   … the more important thing to me is that conscientious people get the information. Share it. That is so much more important than anyone getting the credit.   So just … share it.   “Helping the people” is more important than “getting the credit”.    I think that the world would be a better place - imagine if everyone put “helping the people” before “getting the credit”.    I don’t own trademarks so that I can go after people that say the same stuff that I do. That’s just not in my nature. I’d rather do productive things with my time.   The trademarks are thre just because I wouldn’t want someone else to swoop in and tell me that I can’t use something that I might have come up with in the first place.   When it comes to “helping the people” and “getting the credit”, now, everyone has influences - things they learn from others. You & I are no different that way.    Even those that influence you were influenced by someone else before them.   Well, I DO like to give credit to those that I learned from, so ...    Though I know he’s a polarizing figure to some people, credit is due to Robert Kiyosaki and the Rich Dad Company. Learn more about them at RichDad.com   The most important lesson that I learned there is “Don’t live below means. Expand your means.”   It’s more important to increase your income than cut your expenses.    Don’t make a budget. You’re just tearing things down.    Instead, build a cash flow statement. Now you’re constructing. Now you’re making more of yourself, not less. These are really Rich Dad principles and helped develop my mindset.   Now, as for who helped turn this mindset into something actionable? I’ve got to give props to “The Real Estate Guys” - Robert Helms and Russell Gray. Learn more about them at RealEstateGuysRadio.com    That’s the first place that I learned, for example, that in real estate, the market is more important than the property.   Look, you can’t very well be in your crib with your trading app and just order up real estate - even though people are building online marketplaces.    But one mistake people make is that they buy property because the numbers look good based on some YT video they watched on how to crunch the numbers - but they know nothing about the market or the team.    Then they buy it. Then only after they go buy it, NEXT they go looking for a PM and hope there’s a good one that can handle it.    Then next, they try to figure out the market that they already bought in.   That does not work. They’ve got it backwards. If the market and your property manager check out, then & only then do you get the property in that market.   It’s sad when people get that wrong. That’s why people walk away from RE & they say that RE doesn’t work.   Well, no, that investor wasn’t very strategic. But you CAN understand how that happens to people.   And it was great to have both authors of the “Rich Dad, Poor Dad” book Robert Kiyosaki and Sharon Lechter - and The Real Estate Guys all here on Get Rich Education with us multiple times.    Another set of influencers are two guys that you’ve never heard of before.    Their names are Chris and Raj. They are simply two longtime friends of mine that bought four-plex buildings.   That got me to make my first-ever property that seminal four-plex building where, with a 3.5% down payment I lived in one unit, rented out the other three, and that started it all for me.   These otherwise “regular guys” reinforce the quote from the late Jim Rohn, “You Are The Average Of The Five People That You Spend The Most Time With”.   Today, I’m a collector of real estate - most of it in the United States. Being the geography guy that I am, did you know that I have a world map on the wall of our garage …   … and I have a little red sticker - little red dots on top of those areas where I own property. Yeah, it makes this real estate collecting kind of visual. Maybe you want to try that too.     Well, one part of the world that I’ve been adding more red dots to lately is where I’ve been buying - across Florida.    Areas around Tampa, Orlando, and Jacksonville all make sense from a cash yield perspective.   A lot of BRAND NEW construction properties have numbers that work there, especially where our Orlando provider - that’s Greater Central Florida really - have been actively sourcing brand new construction property in Sebring, Florida, among other nearby places.    Sebring is pretty much smack dab in the center of peninsular Florida, south of Orlando.   These single-family homes that make great rentals have a metal roof, they’re 3 bed, 2 bath, and the prices really are remarkable - $179,900 and $159,900.    Yes, that’s for new construction in Sebring, Florida.   The rent-to-price ratios are a very attractive eight-tenths of one percent or so. Quite good for new construction, plus you’ve got the tailwind of extremely low interest rates as well.   And when it’s new construction, the PROPERTY INSURANCE premiums are so reasonable too.   If you’d like to learn more about those, you can do so at GetRichEducation.com/Orlando   It isn’t just single-family rental homes. New construction duplexes are available too.    That’s GetRichEducation.com/Orlando   You know that I often like to leave you with something actionable like this at the end of an episode.   And knowing and doing are two very different things.   How do we already know that? Well ...   Many people aren’t at their ideal body weight … and it isn’t because they don’t know what to do, they just aren’t doing it.   You also need time to figure out what you want to do. I like eating pizza, for example,  but it took me eating different foods in order to find that out. I had to try and do.   Learning is best done by trial-and-error but it doesn’t have to be YOUR trial-and-error.    Learn from me. I’ll even eat your pizza for you!   I help give you the information you need to make an informed decision.   I connect you with property teams with proven track records - many of whom I invest with myself.   You ultimately choose your investments.   There’s risk with anything … anything in life.    You either take the risk or lose the chance. I think it’s helpful too, that you follow someone that’s been through a recession.    I’ve been investing for … nearly 18 years … it’ll be 18 years next month … since I bought that landmark four-plex building.   Teach you how to fish or GIVE you a fish? Well, why not do both? You can get the fish at GetRichEducation.com/Orlando   Have you ever wondered where your money is? Well, the world already has your money. You just need to go out and claim it.   I’m Keith Weinhold - grateful, as always for your listenership. I look forward to chatting with you again next week.   Don’t Quit Your Daydream!

Stocks, real estate, gold, oil, inflation rate, and interest rate valuations are all updated after the first half of the year. Housing Wire tells us rents are up in: Memphis, St. Louis, Greensboro, Jacksonville, Columbus, Tampa, Cleveland, Kansas City, and Virginia Beach. I discuss where they fell. San Francisco rents just plunged 12%. Macroeconomist Richard Duncan of MacroWatch joins us to discuss depression chances, and inflation vs. deflation. For a 50% subscription discount on Richard’s MacroWatch video newsletter, use Discount Code “GRE” at: RichardDuncanEconomics.com. Fed intervention has prevented a COVID-induced economic depression (so far). We will need more to prevent depression. Hordes of dollars can be created by the U.S. because dollars are not tied to gold. Many Americans still don’t understand this. Recent currency creation has not caused high inflation. The Fed usually hit below their 2% inflation target. Could consumer price deflation create asset inflation? Yes. I describe deflation vs. inflation as a “tug of war”.  Deflationary tugs: globalization, technology.  Inflationary tugs: currency creation. Bottom line: Be invested in something that pays you five ways like real estate. Resources mentioned: Richard Duncan’s MacroWatch newsletter: RichardDuncanEconomics.com Use Discount Code “GRE” for a 50% discount. Mortgage Loans: RidgeLendingGroup.com QRPs: text “QRP” in ALL CAPS to 72000 or: eQRP.co By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. New Construction Turnkey Property: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Top Properties & Providers: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold

Homes with many small bedrooms are hotly desired today. Why? In an economic rough patch, people need roommates. Secondly, home offices are more popular than ever. Residents increasingly want yards today too. Gardening is popular as a hedge against disruptions in the food supply chain. This all makes single-family homes more popular than apartments. *The entire episode transcript is below.* The debt-to-income ratio requirement is positioned to be removed from qualified mortgages. Three listener questions are answered:  1) What about CapEx expenses?  2) What about all these property notices I get in the mail?  3) What happened to the coffee and cacao providers? I give you four reasons about why money is a taboo topic.  Learn the least likely money topic that people are willing to discuss. The most I ever made at my day job was $108,000. People must stop equating net worth with self-worth.  Resources mentioned: April Home Prices Grew 5.5%: https://www.housingwire.com/articles/u-s-home-prices-grew-5-5-in-april-despite-pandemic/ Why Money Is A Taboo Topic - Ally Bank survey: https://media.ally.com/2015-11-24-Holiday-Tip-Most-Americans-Say-Social-Conversations-About-Money-are-Taboo-According-to-Ally-Banks-Money-Talks-Study The Atlantic: Why Americans Don’t Talk About Money Mortgage Loans: RidgeLendingGroup.com QRPs: text “QRP” in ALL CAPS to 72000 or: eQRP.co By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. New Construction Turnkey Property: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Top Properties & Providers: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold   Welcome to Get Rich Education. I’m your host, Keith Weinhold.   Talking about today’s hottest rental type, then my favorite guest is here on milestone Episode 300 - because that guest is you - as I help with your listener questions about your rental property operations, then “Why Money Is A Taboo Topic” (why DO people hide their salary?), and finally a little Episode 300 bonus. All today, on Get Rich Education. _____________________ Hey, you’re inside GRE. From Phoenix, AZ to Phoenixville, PA and across 188 nations worldwide. I’m Keith Weinhold.    This IS that show that’s created more financial freedom than nearly any show in the world.   You’re listening to milestone Episode 300 of Get Rich Education. More on that later.   The hottest INCOME PROPERTY housing type today could very well be single-family rental (SFR) homes that have many small bedrooms.    Four bedrooms is often better than three. Three is better than two.   Yeah, today, a high number of small bedrooms is being favored over fewer large bedrooms.   For one thing, this is because as the economy is in a rough patch, more people seek roommates to share housing costs.   Also, with more people working from home now, they want the extra bedroom for quiet office privacy.   You probably already understand that more residents prefer SFRs over apartments to avoid common areas like laundry rooms and hallways and even elevators.   Another reason boosting SFR demand today is something that you might be overlooking when it comes to rental property … because often, you’re thinking about things INSIDE the property like amenities, and square footage, and layout.    But another reason renters increasingly want single-family rentals are yards. Now sometimes, duplexes might have a fenced yard for each side too, of course.   But … why are yards more desired today?   Well, there are a few reasons. In the pandemic, people have discovered gardening like the hunter-gatherers did.   Yeah, gardening as a hedge against these disruptions in the food supply chain.   In fact, Burpee Seed Company recently had the highest sales in its 144-year history.   People are gardening. In fact, the homeowner’s association in my own neighborhood recently put it to a vote among residents about “OK’ing” having a second detached building in your backyard (only 1 maximum is allowed now) and that’s because more people want to have a greenhouse today.   Gardens and greenhouses - these are most conducive to single-family rentals.   People are even buying egg-laying chickens like never before. It’s kind of a back-to-basics subculture that’s emerging.   Yes, humans are mammals and mammals need sustenance! Haha.   You need food and you need real estate.   In the midst of The Great Shutdown, people want to do more with their lawns.    Lowe’s & Home Depot are doing really well - and they’re selling home-dwellers a lot of things like Inflatable pools, patio furniture, and trampolines.   Then back indoors, yeah, you may very well want to tilt your new property buys into SFRs with more small bedrooms.   Sometimes, older SFHs can have four or even five bedrooms. One reason for that is that families had more children generations ago.   Family sizes are smaller now. So if you still have a 4-5 bedroom place, it can work well for either roommates or home offices.   If you're the "hands-on" type, building a wall to divide a large bedroom has rarely been more lucrative than it’s been lately.   Now, one 300 sf bedroom is pretty big. Dividing it into two bedrooms of 150sf each is paying off more than it has in the past.   They are some housing trends in the pandemic - demand for SFR with more small bedrooms and a yard for a garden.   In the pandemic, the broader economy is getting "bailed out" more often than a bank behaving badly.   It's not just quantitative easing, dropping interest rates on every loan type, or loosening bank reserve requirements or putting free checks into unemployed people’s hands.   Many real estate investors are getting support … almost like they had opened their own GoFundMe account.      Low supply keeps housing prices buoyant. Low mortgage rates keep demand high. Forbearance keeps borrowers from defaulting - so that further supports prices.   Now, the debt-to-income ratio (DTI) requirement is positioned to be removed from qualified mortgages.   This means borrowers that have higher existing monthly debt payments on everyday things like their car or their credit cards could now qualify for new mortgage loans - when they couldn't previously.   Well, what this does is that it creates a larger buyer pool. More people have the capacity to qualify and buy property.   This larger buyer pool serves to further push up real estate prices - and that’s both investment property and primary residences.    Well, eliminating the DTI is great news if you want to lock up more property at these historically low interest rates.   But there can be too much of a good thing. It's a call-to-vigilance to be sure we don't return to those loosey-goosey days of, say, 2005.   That's when virtually anyone with a name and a signature could get a loan. Borrowers lied about their income on loan applications and the income wasn't checked - it wasn’t even confirmed in underwriting.   So then, people with historically low-paying jobs like movie theater ushers & dishwashers & pedicurists could sometimes own a fairly lavish home back then.   When appreciation stopped in 2007, liar-borrowers had no equity to remove for servicing the payments … and that whole thing didn't end well.    We're nowhere near that point. But watch that pendulum swing.    If you’re buying for resilient cash flow, you’re not so price sensitive anyway.   -----   The first one of your listener questions today comes from Chad in Saline, Michigan.   Keith, I like your easy-to-remember VIMTUM explanation of expenses but why are you excluding CapEx expenses from the cash flow calculation?   OK, thanks, Chad.   Let me translate if you, the listener, are uninitiated on this.    The easy way to remember how to calculate your monthly cash flow is to take your rental income and subtract out your mortgage (that’s principal & interest) and your operating expenses, which I call your VIMTUM. V-I-M-T-U-M.    That’s just an acronym I use for your regularly, recurring operating expenses and VIMTUM stands for Vacancy, Insurance, Maint., Taxes, Utilities, and Mgmt. V-I-M-T-U-M   What Chad is asking about are CapEx - which a shorthand way of saying Capital Expenditures.   CapEx means large, IRregular expenses that an investor or even a homeowner - often incurs with their property over longer periods of time.   An example is, what happens when your roof needs to be replaced? A lot of roofs have a 25-year life expectancy.   Now, your property’s water heater has more like a 10-year life expectancy.   Chad is basically asking me how I’m accounting for that when figuring cash flow. I think I addressed this on a prior episode, but it’s been a long time so I’ll bring a fresh angle to the answer.   First of all, I’ve mentioned previously that it's prudent to keep 3-5% of the TOTAL value of your property portfolio in a liquid side fund.    So if all your properties are worth $1M, you’d have $30K - $50K in cash or cash equivalents.   If you’ve just got your, say first turnkey at $100K - have $3 to $5K set aside.   Note that when you qualify for a mortgage in the first place, mortgage loan underwriting typically requires that you have reserves already.   And, by the way, this liquid side fund should be in addition to any overall liquid emergency fund that you have in your life.   But, Chad, on your CapEx question, you might still be thinking ...   Yes, I want to take some of those dollars that you’ve felt compelled to put in a liquid side fund account monthly and factor THAT in to your property ROI. I get that. Here’s the thing.   If you follow … really … the entire wealth formula espoused here on the show, your CapEx expense should be limited. You’re going to pay less in CapEx expenses than other investors.   Why is that? It’s because at the 8-to-10 year mark, which is before a lot of major CapEx items need attention, you’re going to sell your property and 1031 Exchange it into the next one - or hopefully into two at that point.   That is all driven by the fact that, after most any 10-year slice in the housing market, you’re going to have appreciation, hence accumulated equity.   As you know, home equity is unsafe, illiquid, and its rate of return is always zero.   So it’s really due to math and the loss of leverage that makes you move your property along before CapEx expenses kick in.   And with SFRs, you can sell to an owner-occupant buyer that typically get emotions behind the home and isn’t at all concerned that you were the one that enjoyed the new roof in its first ten years of use or whatever.    Now, if you have substantial enquiry accumulation after 10 years on a property that performs really well and you want to hold onto it, then you might do a cash-out refi and have CapEx expenses like a new water heater.   So, thanks for your excellent question, Chad.     One other thing I’d like to mention that a lot of real estate people don’t like to talk about are to, in general, run your cash flow projections fairly conservatively.   That is because, in real estate, unexpected expenses are more common than unexpected income.   Thanks, Chad.   The next question comes from Lori in Pasadena, CA.    Lori says, “Keith, love listening to you. You’ve got the most relevant real estate show out there. Wow, thanks for that.  Things are going fairly well with the properties that I buy through GRETurnkey.com but with each buy, I get more & more of these various letters in the mai that I have to deal with.   The latest one is an annual property rental fee statement from Florida. Things like this continue to cut into my time … umm … and then Lori goes on to give another example.   OK, Lori. Yeah, what she’s talking about here … is that the Florida municipality - the town - where her rental SFH is located has this annoying little administrative charge.   They charge a whole $50 per year to Lori for this property because she’s an out-of-area investor that has the “privilege” of owning Florida rental property in their town.   This is basically like a tax excised by the town where she owns her property.   What something like this really is Lori is … a nuisance. Just reading the form, and figuring it out what it is, and seeing how that Florida town accepts the payment. It IS annoying. It cuts into your time.   In fact, I got a piece of nuisance mail for one of my apartment buildings just yesterday.      This is from a utility provider - the natural gas provider to the building. Basically, the natural gas company is working on a high-pressure gas transmission pipeline, and the R-O-W for the pipeline is apparently within ⅛ of a mile of this apartment building of mine.   The letter said that the property residents should be informed.   Well, Lori, with the piece of nuisance mail that you received and the one that I got, here’s what you do. Get it out of your life. Get that nuisance mail out of your life.   Now, I don’t mean “throw it away”. This all comes down to one word - and that word is “manager”.    What I did was get out my phone, I took a photo of this letter, sent the letter image to my Property Manager right away.    I asked them to handle it - and also asked the manager to make sure to tell the letter sender that any future correspondence like this be sent to the manager, not me.   You know what we just did, Lori. We both just increased our ROTI. Yes, we just increased that all-important investor metric that’s even more important than ROI.   ROTI is your Return on Time Invested.   I’m a big proponent after having a professional Property Manager. Remember, it’s their job to handle communications with your residents like this - and it doesn’t cost you anything extra.   Remember to outsource these little nuisances to your PM.   Lori, I don’t know how many properties you have, but just say you have a total of ten rental doors.    With a portfolio that size, some months, you might have what investors call “a perfect month” - that is, a month with zero repairs or maintenance in your portfolio.   But whenever you do, sometimes you might wonder - well, what did I pay the manager for?    Well, you still paid your manager to collect the rent and pay your bills and itemize your statements, and just have the peace of mind that your tenants can’t get ahold of your DIRECTLY at an inconvenient time.   But ensuring that your manager handles all your nuisance notices such that you don’t even know that you got one … that increases your Return on Time Invested.    Be that responsible owner. Do good in the world. You want a nuisance tax notice to get paid, you want your tenants to be informed about nearby utility work - but be sure to outsource it and keep your quality of life.    Like I’m fond of saying, “Be sure your quality of life exceeds your cost of living”.    Bottom line is - Use your manager. Thanks for the question, Lori!     The next question is from Brian in Austin, TX. Brian says:    Hi Keith, I am an investor with $7 million in value across 32 properties. (Nice job there, Brian). I noticed you are not promoting coffee and cocoa any longer and was curious if there was concern or a reason behind it? Thanks, Brian.   Alright, Brian. What he’s referring to is that at GREturnkey.com - where our list of cash-flowing property providers is, there used to be a page for coffee investing there and a page for cacao investing there - and they’re both currently gone.   Brian, what happened is that, with the provider there - and its the same provider for both types of agricultural investment - that is, where you, the investor, get cash flow from the ANNUAL harvest of coffee and cacao is that that provider is having trouble with the deeding process where those parcels are located - namely, in Panama.   The provider is still delivering the land deeds to all the investors. But working with the municipality there is taking so long that this long, drawn-out deeding process was frustrating to some investors.    In fact, it might have taken me … something like two years to get my deeds for my coffee farm parcels. I don’t really remember - but it took awhile.   Anyway, those offerings aren’t currently on GREturnkey.com because the provider is changing their model, in part because of the slow deeding process. They’re listening to your input and responding. They’re doing, really, what you would want them to do.   So they are moving toward a Private Placement model. That way, they can issue the share certificates in a matter of weeks, not years like it is with the deeds, and they can focus their time and effort on actually developing, growing and operating the business.   Another is that under the deeded model, they couldn’t accept IRA funds any longer.   So, expect coffee and cacao to be back on GREturnkey.com at a later time. That’s why they’re not there now. There aren’t any more deeded parcels available - and they’re changing their model.    But, of course, they’re still working on getting the deeds for those that have bought those farm parcels in the last few years & still don’t have their deeds.   The main reason that you’ll see a provider be removed from GREturnkey.com is that they’ve run out of INVENTORY in that market.    If a provider doesn’t have inventory & doesn’t actively source it, then there’s no reason to waste your time & have it there at GREturnkey.com.   That is all for our listener questions today.   Homes prices for April grew 5-and-a-half percent year-over-year despite the pandemic. Yes, real estate is slow moving and we’re still looking at April data here near mid-summer.   That article is in the Show Notes for you.    My guess is that I wouldn’t really expect an appreciation rate that high over the NEXT year.   But one thing that is supporting prices are those “erstwhile” mentioned low, low mortgage interest rates that are even lower than the ocean floor at this point.    Let’s look at mortgage interest rates decade-by-decade. Gosh, this is just remarkable.    It gives you perspective sort of like a while ago when I played those cornball television commercial ads from the 1980s where you could finance a car for an 11% APR - and that was touted as a great deal.   Well, let’s look at the average 30-year fixed OO mortgage rate that was issued in the 1970s.   It was 8.9% then. That was the average rate. Inflation was increasing.   By the 1980s decade, inflation had reached a crescendo. This was the Voelcker Era - where Fed Chair Paul Voelcker famously raised interest rates to try to stomp out runaway inflation.   And Voelcker’s bold move WAS successful. But this helped result in a 1980s decade mortgage rate of 12.7%. Gosh, 12.7%.   By the 1990s, they settled down to 8.1%.   By the 2000s decade, down to 6.3%. Yeah, that sounds about right - I bought my first ever property in 2002 at right about that rate - it was 6-⅜%.   By the 2010s decade, we had low interest rates to pull us out of The Great Recession and they stayed low. In fact, the average for the 2010s decade was … 4.1%.   That felt unprecedented at the time. Well, today, take another full percentage point off that yet. Mortgage interest rates are 3.1% today … as we’re here early in the 2020s decade.   Just astonishing. 3.1%.   Now, interest rates correlate with inflation. So today we’re in a low inflation environment and hence, a low interest rate environment.   Well, coming up here on the show next week, one of the world’s most prominent economists will be on the show with me and we’re going to discuss Inflation vs. Deflation.    Which side is winning … and what is going to happen next. Of course, we’ll discuss the state of the broader real estate economy and so much more as well. That’s next week.   I hope that you are doing well. We’ve been largely sheltering-in-place here at our home in Anchorage, Alaska. I’m coming to you from Anchorage today.   Next week, if all goes as planned - it’s an awkward time for cross-continental travel, but I’ll be flying into Buffalo, New York, and then spending a good chunk of this month in both western New York State and mostly Pennsylvania … as I’m visiting family. I think I’ve told you before that I feel like I won the “parent lottery”.   My terrific parents have lived in the same upstate Pennsylvania home since 1974. They've also had the same phone number for all 46 years.    And when I visit them, I still sleep in my same bedroom that I slept in as a baby. I love Curt & Penny Weinhold - and I am so grateful and inspired by their example of goodness and stability.   As far as events - if you want to meet in-person. I had hoped to do meetups in New York City and Philadelphia this summer, as well as a Harrisburg, Pennsylvania real estate field trip. But COVID has wiped out all of that.   Of course, as always, you can keep up-to-date on all of that GetRichEducation.com/Events   Some other live speaking events have gone virtual. For example, I’ll no longer be speaking in Birmingham, Alabama at the Spartan Summit this coming October.    But I will be speaking at their “event gone virtual”. In fact, I’ll be the speaker KICKING OFF The Spartan Summit. Again, learn more at GetRichEducation.com/Events.   I hope to do some or all of the live New York City, Philly and Harrisburg events next year.    For milestone Episode 300 here, do you like the Get Rich Education … theme music? Or did you at least, wonder where the now-familiar-to-you music comes from.     Well, we don’t purport to be any type of music channel. This is an investing show.   But this one time, for Episode 300, we’re going to play all of it - it’s two minutes long - at the end of the show today.    We own the royalty-free track. This show launched in 2014, and this track has been our theme music since late 2017. It’s from a DJ named Wicksford and it’s called “Cannot Be Stopped”.    But first - why don’t people talk about money? Why are other people so secretive about their salary? Why is money considered a taboo topic, then anyway? That’s next.    I’m Keith Weinhold. You’re listening to the wealth-building Get Rich Education.  ___________________   Welcome back to Get Rich Education. You are listening to milestone Episode 300.   We’ve been talking about some of your harder real estate investing skills today.   Well, what about mindset?   Why Don’t People Talk About Money? Why is money a taboo topic - one of those things that you just don’t talk about? It’s taboo stuff - right up there with politics, sex, and religion? Well, if people would stop equating self-worth with net worth, then talking about money would not be this big taboo thing.   According to a survey conducted by Ally Bank, 70% of Americans think that it’s rude to talk about money.  Just, get this - Research shows people would rather talk with a stranger about an STD than their salary. Oh geez. You’d rather tell someone you have an STD than tell them how much you make? People would rather admit to contracting gonorrhea than fessing up that they only make $54,000 a year. Sheesh!!  Oh, gosh … and did I really just use that word on the show. Especially here on Milestone Episode 300? So … well why this … society-wide gag rule? Why does this taboo exist? I think that it all boils down to about four big reasons. People don’t talk about money because, most people don’t have much money. So there’s this negative association. Talking about money is proportionate to talking about problems. If you’ve had more financial success in life, then it can be easy to forget that so many people think this way.  The second reason that “money talk” and especially “salary talk” is taboo is that because if you have a lot of money … you know what can happen to you?  Someone might ask you to borrow it. Well, lending money to family or friends is a great way to strain relationships. If they’re late to pay you back, then it’s rude for you to even ask someone when they’re going to repay you. Another reason that there’s a prohibition of “money talk” … at least in America here … is because many Americans put a higher value on PRIVACY than other societies do. Now, I think that there are gradations of what money TOPICS are acceptable to discuss and what are not. I’m pretty sure that I’ve told you on a previous show - though at this point, 300 episodes, sometimes I can forget - but I’m pretty sure that I told you that the most that I ever made at my day job before quitting it more than five years ago was $108K. At times, I had to work more than forty hours a week for that.  Now, that might be $125K in today’s inflation-adjusted dollars, but that salary was no longer that interesting to me when my real estate provides value to people with very little of my involvement. Now, I’m kind of a rare person for me to even mention - a past salary like that - even though it was kind of in a former life of mine. In America, if something costs even more than a few hundred dollars, MAYBE you shouldn’t mention it. If your friend bought a canoe for the lake - you might want to know how much it cost, but you’re hesitant to ask them the question.   When we talk about gradations of cultural acceptance, I think that if you inquire about the cost of your friend’s lunch yesterday—that’s a transaction with pretty limited connections to the past and future—and that generally isn’t off-limits.   Now, in Israel, people OPENLY discuss salary. Why is that? Well, there are a couple reasons. It’s because a place like Israel historically places a lower cultural premium on privacy.  Another reason … is that a place like Israel and other places in the world have higher levels of labor unionization. You see, “once it’s collective bargaining, it’s not as personal”. When you’re a member of a labor union, you often know each other’s job classification and that job title is rigidly tied to a fixed and publicly-viewable salary or wage.  And then, really another reason for the cultural “Money talk taboo” in America, is because asking someone what they earn means that you are indirectly questioning their personal worth.”  “By contrast, in China personal worth is not primarily indexed to financial worth, but rather one’s ‘quality’ or what they call “SUZZ-eee” (suzhi).  Your moral and ethical values cannot be reduced to economic value.” Yeah, I really respect that. Getting back to the Ally Bank survey - what they found is that when people DO discuss finances socially, nearly one half of the survey respondents said they prefer to keep it neutral - for example, talking about price comparisons on goods and services like granola bars or a manicure, or where to find a better interest rate on a savings account." It also found that younger people are more open about discussing money More than any other age group, millennials (59 percent of them) acknowledged talking with others about their income, savings and debt, even though nearly two-thirds agreed it is rude or inappropriate to talk about money in a social setting.    In fact, almost half say they disclose their income to others, and 62 percent say it is important for them to surround themselves with people who they feel are financially secure. So, even kind of the second-youngest generation today, Millennials, would rather be around people that are financially-secure. Hmmm … that’s really “telling”.    Now, what I found interesting is that the survey revealed that: The majority of respondents said they discuss sensitive money matters with family is 69 percent, with financial professionals is 26 percent, and with friends is only 22%, while only 8% percent said they discuss sensitive money matters with work colleagues.  That shows more there that when you to talk about it - it’s deemed to be a real breach of professionalism to discuss this stuff at work.   People are most likely to disclose their income (39 percent) over savings (30 percent) or debt (29 percent) to family and friends. That tells you that disclosing debt is the most embarrassing for people. Of course, that’s mainstream society.  Here at Get Rich Education, displaying the amount of good debt that you have probably says something rather positive about your real estate portfolio size.   Now, in WORKING-CLASS communities, the money taboo can be weaker there.  Jennifer Silva is a sociologist at Indiana University and she researched the coal-producing region of Pennsylvania. The bottom line is that the working-class families she’s interviewed didn’t hesitate to disclose specifics about their income, rent amount, or expenditures.  “People would say, ‘I’m an open book,’ and they’d be straightforward, open, not ashamed.”  They freely discussed “the challenges or even impossibilities of supporting a family on minimum-wage work” and almost acted a little proud of their resourcefulness, like “how they would make their budget stretch, such as buying ground meat in bulk and freezing portions to make it last.” You know, from my personal vantage point, sometimes you will BE around people that you know make substantially less money than you, And you know what, you DO find yourself tilting the conversation so that person isn’t made uncomfortable. What about when you go get your hair cut? I mean, the 15-minute conversation that takes place between me & the person that cuts my hair … it’s like, if they ask me what I did this weekend - and I stayed in a resort and they already told me that they played basketball with their kids or something else - even though basketball with your kids might be a GREATER activity in a sense than staying at a resort … I don’t mention staying at a resort because it sounds hoity-toity … a little snobbish. Kinda unrelatable to them. So then maybe I’ll tilt that chat to NBA Basketball or something. Chat about something that’s not so socioeconomically stratified. You can always find that common ground somewhere.  You know, another personal anecdote, in my life, I do a lot of these 5K running races & other events like that. The race event makes my time publicly available. The local news outlets might even pick up those races times and publish them.  Anyone can see it. Well, that is a measure of my fitness on that day. There are clearly plenty of runners that rank both above me and below me. So, that’s made public? But yet salaries are not?  Somehow, American society does not equate physical fitness nearly to the degree that we evaluate and stratify how much money you make. I don’t know that it should be that way, but it is. I think that’s rather weird. Revealing how much money you make, to many people,  “exposes how you’re valued by your employer and how your contribution is valued even more broadly, by the community.” That makes an ounce of sense, sure, but why such a high value? I don’t get that part. Few people would think “You are worthless because you haven't broken the 20-minute mark in a 5K yet.”  But for some reason, WAAAY more people would equate you with having a lower worth if, say they learned that you only made $54,000.  Now, Eli Cook - he’s a history professor at the University of (HIGH-fuh) Haifa and the author of a book on the topic, says that this money taboo has been going on for about 150 years in America.   In the late 1800s and early 1900s, he says that many Americans internalized the lessons of mainstream neoclassical economics, which suggested, through [the economist] John Bates Clark’s theory of marginal productivity, that everyone earns what they in fact produced.”    So … that’s one opinion on about HOW LONG this has been taking place.   Really, what a lot of this comes down to is that the everyday conversations that you have with others are filled with questions about what people buy, what they do for a living, or how long they’ve been investing in real estate, and where they went to school.  And once you know all of those things about someone else, the salary or net worth or cash flow are less important … because all of this is CONTEXT that you have about others - and these are all really proxies for class position anyway.   When we can stop equating net worth with self-worth, money has a chance of no longer being a taboo topic … and that really is, the big takeaway.   I trust that you’ve been enjoying MILESTONE Episode 300 of Get Rich Education.   As always, to get the Show Notes, you can go to GetRichEducation.com/300 - since that’s the episode number.    In fact, this week, you’ll find the entire transcript to the episode if you would like to read along … or you tell someone else about the show and tell them about the option to read as they listen.   Above all, I have got to thank you for listening. I hear from so many people that tell me when they discover this show, they want to go back & listen to all 300 episodes …   … usually because I hear one of two things. They say it makes actionable real estate investing more CLEAR than anywhere else … or that it's changed their investor MINDSET more than anything else.    Remember, if you’re interested, hang around until the very end of the show today to hear the entire uncut theme music … as a little Episode 300 bonus.    More importantly, if you’re one of those people that STILL has not bought your first property.    You can’t TIME the market, and you can’t make any money from the property that you don’t own.    As long as you’ve been educating yourself for a while, then, if you think that inexperience is the only thing holding you back, well, then the only way to GET that needed experience and learning is to act.   Some people wait for ALL blue sky and everything to be perfect before they begin. Well … that really never happens.   You’ll either change what you’re doing … or you’ll keep what you’ve got.   Teach a man to fish … or give a man a fish?   Well, here, we do both. At Get Rich Education, we TEACH you how to fish.    GREturnkey.com is our sister website where we GIVE you a fish too - with top national turnkey providers.   Get your mortgage pre-approval and download a provider report. We give you all 8 main steps at the top of the page there.   View available properties, make an offer, please get a third-party property inspection, then comes the appraisal, then sign a Property Management Agreement …   … have your property closing, and finally, own the property and enjoy the collected RENT that your PM auto-deposits into your bank account. Get started at GREturnkey.com   I’m your host, Keith Weinhold and I’ll be back next week and every week to help you build your wealth. Don’t Quit Your Daydream!

Turnkey RE providers must acquire distressed property at a discount in order to stay in business. We go behind-the-scenes and see how these companies really operate. They take risks, maintain relationships with myriad parties, coordinate contractors, bear holding costs, buy & store materials, screen & place tenants, and operate a management division. It’s a ton of work that investors can outsource to turnkey providers. They are professional fix & flippers.  The “consumer-profit chain” helps you understand this. Dani Lynn Robison of Freedom Real Estate Group near Dayton, Ohio offers private lenders like you 8-10% cash-on-cash returns at www.GetRichEducation.com/Lending The funds are used to purchase and rehabilitate distressed property. They’re transformed into turnkey property. Your loan collateral is tied to a specific address. A note and mortgage is produced. You have first lien position. This provider has performed 300+ fix-and-flips since 2015. Get the report and connect with the provider for predictable 8-10% cash returns for four to twelve month terms at: www.GetRichEducation.com/Lending   Minimum investment amount is $50K. You DON’T need to be an accredited investor. Resources mentioned: Private Lending with 8-10% cash return:  www.GetRichEducation.com/Lending Mortgage Loans: RidgeLendingGroup.com QRPs: text “QRP” in ALL CAPS to 72000 or: eQRP.co By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. New Construction Turnkey Property: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold

Learn how to “get rich for sure” versus “get rich quick”.  You must diverge from the herd to get more out of life. Today’s guest, 24-year-old Hayden Crabtree, found that he owned more property than his college real estate professor. After college, he worked to learn rather than earn. He worked for free for over a year! That’s how he attracted a real estate mentor - by providing immediate free value, not “taking”.  Hayden also values relationships, and structuring “win-win” deals. He authored the new book, “Skip The Flip”.  House flipping is not real estate investing.  Hayden, based in Athens, GA, focuses on self-storage units. Some family and friends will critique you for being different. Few understand financial freedom. He uses debt (leverage) to create wealth. Hayden is giving away his e-book free at: HaydenCrabtree.com/freebook Resources mentioned: Hayden’s book is free: HaydenCrabtree.com/freebook Mortgage Loans: RidgeLendingGroup.com QRPs: text “QRP” in ALL CAPS to 72000 or: eQRP.co By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. New Construction Turnkey Property: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold

Pros and cons of getting paid a permanent government housing subsidy are explored. But first, I discuss your future in light of the current pandemic crisis - housing supply, 2020 vs. 2008 recession differences, economic “vaccine”, current 13.3% unemployment rate. “Section 8” is the primary federal government program that subsidizes three groups: low income, elderly, and disabled. It is HUD-sponsored. Cons: Tenant screening is vital, inspections.   Pros: Longer tenancies, higher rent amount, lower vacancy rate, tenant wants to keep voucher. Learn more about owning renovated Section 8 housing with a manager that deal with the housing authority at: www.GetRichEducation.com/Richmond The housing authority typically pays most, not all, of the tenants’ rent. CNBC named Virginia of the #1 business state. Richmond is the capital of the 12th-most populous state.  In Richmond, $1,300 rent and $145,000 purchase price (0.9% RV) is typical for SFRs suited to Section 8. Connect with the provider for “guaranteed rent” property at: GetRichEducation.com/Richmond Resources mentioned: Property with “guaranteed rent”: GetRichEducation.com/Richmond Mortgage Loans: RidgeLendingGroup.com QRPs: text “QRP” in ALL CAPS to 72000 or: eQRP.co By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. New Construction Turnkey Property: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold

I detta avsnitt diskuterar vi orsaker till replikationskrisen i vetenskap. Vi särskådar en potentiell bov i dramat, nämligen det som kallas för ”questionable research practices”, eller översatt till svenska: tvivelaktig forskningspraxis. Vad är detta för något och varför tror vi idag att de lett fram till en kris? Vad finns det för olika QRPs och är alla lika dåliga? Vad går gränsen för när en forskningspraxis är ”tvivelaktig” och när det är rent fusk? Vi pratar om hur utbrett problemen egentligen är och hinner också nämna doping, förlorade forskarkarriärer, psykisk ohälsa hos doktorander, vår tillit till forskning och Kristoffers brustna hjärta.

College real estate is in deep trouble.  Commercial leases of all types are in trouble because they often have 10-year terms. Who wants to make 10-year decisions today? Residential B and C-class SFHs up to four-plexes in the suburbs make a lot of sense today. We’ve had 33 recessions since 1860. They’re common. Mortgage rates hit all-time lows again, forbearance loosens, and entry-level housing supply is tight.   Fed Chair Jerome Powell says negative interest rates aren’t being considered. He admits to printing money out of nothing (wow!) - and we listen to the audio. Redfin CEO Glenn Kelman tells us about urban-to-suburban migration. I discuss “The Geography of Real Estate”, clearing up many misconceptions about U.S. geography. Learn: Why the West Coast is warmer than the East Coast, the geography of property taxes and credit scores, NYC geography & air rights, Mississippi River importance, sinking cities, Texas facts, Pacific NW’s sparse population, California and Alaska myths.   Trivia question: What is the world’s most populated island? Resources mentioned: Mortgage Loans: RidgeLendingGroup.com QRPs: text “QRP” in ALL CAPS to 72000 or: eQRP.co By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. New Construction Turnkey Property: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold

Making a lasting impact is rare. Get comfortable with being uncomfortable. You get more focus time by opting-out of life's needless direct message notifications. You get more cash flow by minimizing the amount of real estate principal that you pay down. The author of the popular new book, The Wealthy Gardener, John Soforic joins us. It is about lessons for prosperity between father and son. The book could make a great Father's Day gift.  John has $20K of monthly real estate cash flow. Don’t strive for happiness. Strive for satisfaction; more happiness will result as a by-product, and you’ll be significant.  John’s grandfather worked his body into the ground in a coal mine, 60 hours a week for 40 years, dying of black lung disease. John vowed to live a more meaningful life. John reveals: a 5-year crusade for wealth, why working a 40-hour job is not a sacrifice, how to stop selling your time for dollars.  The top excuse why people don’t do more is: fear, not laziness. Resources mentioned: The Wealthy Gardener book: Amazon link Wealthy Gardener Website: https://wealthygardener.com/get-rich-education-with-keith-weinhold/ Mortgage Loans: RidgeLendingGroup.com QRPs: text “QRP” in ALL CAPS to 72000 or: eQRP.co By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. New Construction Turnkey Property: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold

Deflation is occurring before long-term inflation is expected.  When people stop buying things, manufacturers can’t charge enough, so they stop making products. This results in more layoffs.  Our national debt is $26 trillion. It’s doubtful that it will ever be repaid. This is why The Fed must inflate. MidSouthHomeBuyers.com has provided our listeners with more cash-flowing property than anyone. They’ve renovated 2,600+ homes in Memphis, TN and Little Rock, AR. They then place a tenant and manage the property for you. In the pandemic, renters prefer single-family homes over apartments. What makes Memphis so resilient? Shipping, distribution, transportation, medical. Memphis’ rental sweet spot is $660 - $990 for this class of property. Sale price: $60K - $95K. These are decent homes. I’ve been inside them with both guests. In 2009, Memphis saw no rent drops or occupancy drops. Last year, they expanded into Little Rock, Arkansas. You can start with a Memphis home for just $14K-$19K with down payment and closing costs. Expect a wait list. This reputable, longtime provider is popular.  Resources mentioned: MidSouthHomeBuyers.com USDebtClock.org Mortgage Loans: RidgeLendingGroup.com QRPs: text “QRP” in ALL CAPS to 72000 or: eQRP.co By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. New Construction Turnkey Property: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold

You really can gain intelligence in order to achieve wealth and success. Guest John Assaraf guides us in learning how. John is an expert in helping people achieve more. He grew RE/Max of Indiana to nearly $5 billion in sales. Success often comes from making “non-conforming” choices. I give you three examples of my own non-conforming decisions: moving from PA to AK, buying a four-plex, and even launching this show. “We must all suffer from one of two pains: the pain of discipline or the pain of regret. The difference is discipline weighs ounces while regret weighs tons.” -Jim Rohn Commitment drives beliefs, which drive habits, which drives behaviors. How “you see yourself” matters.   Strengthen your strengths and manage your weaknesses.  You own the most powerful biocomputer in the world - your brain. Few exercise it enough. Learn how to manage fear. It’s one of your strongest emotions. Financial and emotional safety are being preserved. When you control your fear, you can respond rather than react.  Resources mentioned: John Assaraf Websites: JohnAssaraf.com MyNeuroGym.com John’s book “Innercise”: Amazon link Check out John’s: Twitter: @johnassaraf IG: @johnassaraf Mortgage Loans: RidgeLendingGroup.com QRPs: text “QRP” in ALL CAPS to 72000 or: eQRP.co By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. New Construction Turnkey Property: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold

Learn the history of interest rates, 1971-2020. Mortgage rates just hit all-time lows. Tenants are generally reliably paying the rent during the pandemic. Why? Government pays their income; expenses are lower because they can’t travel anywhere to spend. They have more to spend on the rent.   Unnecessary businesses are collapsing: spas, salons, theatres. More than half of mall department stores could be closed by next year, like Macy’s, JC Penney, Lord & Taylor. If you don’t have multiple income streams, the pandemic is harder on you. Chase and Wells Fargo have shut off new HELOCs. Learn about first and second lien positions, subordination. Will car sales tank? No. I play three cornball TV commercial ads from the 1980s about interest rates - GMAC financing, a car dealer in Winnipeg, Manitoba.  Chicago is the rare world-class city where investor numbers make sense.  I provide street addresses of two available turnkey properties in NW Indiana (Chicagoland). Damion Lupo joins us. With the CARES Act, you can access 401(k) funds more easily, and direct them into an eQRP. eQRPs can invest in: real estate with or without debt, syndications, rentals, flips, domestic land, foreign land, mobile homes parks, precious metals, mortgage notes, oil & gas, private money lending, options, franchises and more. Resources mentioned: QRPs: text “QRP” in ALL CAPS to 72000 or: eQRP.co By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. ‎Financial Underdogs on Apple Podcasts Two Chicagoland Turnkey Properties: GetRichEducation.com/Chicago Throwback TV automobile ads: https://youtu.be/nlSNeQtN208 https://youtu.be/Eo6znwMWSac https://youtu.be/aBX0rjKAJ-Q Mortgage Loans: RidgeLendingGroup.com New Construction Turnkey Property: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold

Can you count on rent collection in the pandemic? Could home prices drop? Is it better to buy property today, or say, six months from now? If you think that the pandemic will drag on for years and badly affect the economy, stay on the sidelines. Most think it'll bounce back this summer. I talk with guest Gregg Cohen, who helps manage 3,500 rental units in Jacksonville, FL for insight. Forbearance stabilizes housing values. Without it, some would have to sell their home. Many Florida residents are paid more from unemployment compensation than if they worked. This assists in rent collection. Gregg & his company offer you new construction Jacksonville, FL property. If your tenant cannot rent, they will pay your mortgage for you up to six months. This is only for GRE listeners that use this link: https://www.getricheducation.com/jax/  Resources mentioned: Jacksonville new construction property: GetRichEducation.com/JAX Mortgage Loans: RidgeLendingGroup.com QRPs: text “QRP” in ALL CAPS to 72000 or: TotalControlFinancial.com By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. New Construction Turnkey Property: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold

You can postpone mortgage payments with forbearance.  If you collect rent payments from your tenants, can you pocket it all and not pay your mortgage? What a windfall! (Complete episode transcript is below. Read along as you listen.) In crisis times, your cash flow is your cushion. Last year, the publication “Emerging Trends In Real Estate” forecast that the chances of a pandemic roiling the economy were low. The CARES Act’s effect is discussed. Payments follow five links in a chain: employer - renter - investor - mortgage servicer - mortgage-backed security holder. What’s the difference between a lender and a mortgage servicer? Ethics and greed. Are there deleterious consequences of forbearance? Resources mentioned: Read episode transcript at: www.GetRichEducation.com/290 CFPB Video on CARES Act: https://www.consumerfinance.gov/coronavirus/ cares-act-mortgage-forbearance-what-you-need-know/ Mortgage Loans: RidgeLendingGroup.com QRPs: text “QRP” in ALL CAPS to 72000 or: TotalControlFinancial.com By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. New Construction Turnkey Property: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold   Complete episode transcript:   Welcome to Get Rich Education. I’m your host, Keith Weinhold. You can potentially collect your rent income from tenants and then, turn around and NOT pay the mortgage loans on those properties for a few months, pocketing a nice profit. But should you?    In the pandemic-induced world of eviction moratoriums and mortgage loan forbearance, there will be winners and losers. I’m helping you sort that out so that you can be one of the winners - and more - today on Get Rich Education. ____________________   Welcome to GRE. From Olympia, Greece to Olympia, Washington and across 188 nations worldwide. I’m Keith Weinhold, this is Get Rich Education, and we are all living in strange times.    The squeeze for some of us, I think is encapsulated in Jerry Constantino of Queens, New York’s situation.   He’s talking with owners of the roughly 500 units that he manages, who are worried what’s going to happen if the rent checks stop coming in.    As part of his Property Management duties, Jerry is talking with tenants, many of whom he assumes will be delinquent this month because they either lost their jobs or they’re just choosing not to pay.    Jerry’s a hard-working guy and he knows that the tenant in Unit 31-A has paid his yet, and it’s a few days past due.    But yet Jerry knows that this tenant hasn’t lost his job and ought to be able to pay rent on time like he always did before the pandemic.   Jerry sees this tenant from Unit 31-A in the hallway and says, “Don’t mess with me dude, where is the rent?”   And by the way, Jerry got a little gruff and his words weren’t exactly “Don’t MESS with me…” but that’s the version that you get here on this unapologetically squeaky-clean lyrics show.   And besides MANAGING property for others, Jerry is also in discussions with banks, trying to figure out how he’ll make mortgage payments because he’s got properties that HE owns HIMSELF during this worsening global health crisis.   And, a lot of people find themselves in a situation similar to what Jerry is in. Some large property owners have already rolled out payment plans for their tenants - and halted evictions - because they legally have to - as the coronavirus outbreak roils the economy.  Many apartments in the U.S. are essentially small businesses that tend to have less financial flexibility and will need some help ... in the coming months. Now, there are some choices for the millions of Americans who lost their jobs and have no clear prospects for when they’ll get them back.  Three things that are aiding TENANTS right now, helping them pay the rent are: eviction moratoriums, unemployment benefits and cash payments - like those $1,200 stimulus checks - from the federal government that can help many keep a roof over their heads. Nearly half of the nation’s 44 million renter households were already stretched financially: before the pandemic. The University of Chicago found that ONE-THIRD of adults can’t cover necessities after missing just … one ... single paycheck.    One in four tenant families pay over half of their income just to make the rent payment.   We’re basically going to break down Jerry Constantino - the King Of Queens’ - situation here, being mindful that ....   In general, the average Get Rich Education listener is better off than the average real estate investor for a number of reasons.   For starters, one of our core principles here is that we invest predominantly in residential real estate. That is due to its durable utility.   Coronavirus has changed a lot in society, but it has NOT changed the fact that people still need a place to live.   You’ve got to be grateful that we focus on residential because it’s recession resilient.   Most landlords are still getting 80 to 90% of the rent income, even 100% if you’ve got a small portfolio.    Just think about how many businesses aren’t getting nearly 80-90% of their income now? The restaurants, and bars and gyms, airlines, cruise ships, hotels, on & on … are they even getting 30%?   Though it’s the exception, some businesses, like large retailers might be getting 105% of their usual income now.    We also focus on investor-advantaged markets here at Get Rich Education - with the principle that the market is more important than the property.    And so many people get that backwards.   We discuss the advantages of being invested in multiple markets so that your tenant income streams are from diverse employers. Anyone that doesn’t adhere to that is in more trouble.   Also, we focus on buying property that cash flows on the day that you buy it - where the monthly income exceeds the monthly expenses on your settlement day - on the day that you buy - not “maybe it’ll cash flow sometime in the future”.   Look, in times of crisis, your cash flow ... is your cushion.   Here’s what I mean. To keep it simple, if every one of your properties rents for $1,000 and has $800 in monthly expenses, you’ve got a $200 monthly cash flow on each one.   You’d have to lose - just outright lose - and never recover wholly 20% of your income and then you’d still break even on a monthly basis.   This is what I mean that in crisis time, your cash flow becomes your cushion.   If you have a 10% rent loss, your cushion is half-eaten, and your cash flow becomes $100 per door. You can’t kick tenants out for a while because there’s an eviction moratorium.   But, you can also be granted loan forbearance and not have to pay your mortgage. So you might be able to profit wildly at this time.    Each of these things - an eviction moratorium and mortgage loan forbearance are part of the recently-passed CARES Act. I’ve got way more on that later … whether you’re in Jerry’s situation or you’re better off.   Let’s pull back and look at how unlikely this Black Swan Event known as the coronavirus pandemic really is, first.    Here’s some perspective. Last year, the publication called “Emerging Trends In Real Estate” launched a survey that’s just so, so interesting now that we have the benefit of hindsight.   They launched a survey last year called “The Importance of ISSUES for real estate in 2020”. They were FORECASTING the following year - this year.   A pandemic was NOT forecast to be an important issue at all for real estate this year.     In fact, the #1 survey answer was predicted to be the political landscape. That could make sense as this is an election year, and divisive partisanship sure is not abating.   The #2 predicted factor was … government & budget issues.   The issue forecast to be the 3rd-most important real estate issue for this year was .... immigration. OK, makes sense. That was a hot topic for a while. And greater immigration creates more housing demand, sure.   #4 was Global conflict. OK, makes some sense. We had growing trade tensions with China, political tensions with Iran and North Korea.   The real estate issue predicted … last year … to be the fifth most important for this year was … Income inequality.   How long do you think that it will take us to get to a pandemic … or epidemic. No one foresaw this.   Sixth was Rising education costs. That definitely intersects with housing as giant student loan debts increasingly prevent people from forming a first-time homebuyer downpayment, which keeps them in the renter pool.   The seventh most-important real estate issue for this year was predicted to be Social inequality.   Eighth was terrorism. That’s going lower on the list as major terrorist acts in America continue to recede into memory, gratefully.   And number nine - yes, last year, what was predicted in “The Emerging Trends In Real Estate” survey for THIS year is … Epidemics.   All those other factors were deemed to be more important.    And that’s from a pretty respected publication. That source, Emerging Trends in real estate, is partly compiled by the Urban Land Institute.   So, it just goes to show you that, no one, not me, not you, not the expert economists that come here on the show with us - no one really knows.   Now, there was one Get Rich Education episode where I had a “glass half-empty” segment, maybe one year ago, where I was talking about all the things that could go WRONG in real estate investing.   I did mention a plague. I used the word “plague”. And what I was thinking about was, what if an awful bubonic-like plague wiped out, say 20 million Americans - which would be more than 5% of our population.   Well, that sad event would reduce housing demand, of course, if there are substantially fewer … live humans.    And as sad as COVID-19 is, no one is predicting that it will be fatal to even one-half of one-percent of our population.   And I certainly wouldn’t have predicted that by this year we’d be practicing things like sheltering-at-home or social-distancing. It still all seems like some sort of bad dream.    We’re talking about, “Do you get free money? Should you take mortgage loan forbearance?” here on Get Rich Education Episode 290.   In fact, if you’d like to read along while you're listening, the entire written transcript for today’s episode is in the Show Notes. You can access those at GetRichEducation.com/290 and follow along that way if you like.   In order for you to understand mortgage loan forbearance - and forbearance means that you can postpone making payments, understand the big picture.   You can best understand this as part of the five links of a chain.    Yes, forbearance allows you to BREAK a chain.   The five links in the chain follow the money. They follow the payments through: Payment goes from Employer … to Renter... to Property Owner... to Loan Servicer... to finally, the MBS Investor. They are the five links.   Now, let's look at what happens here.   The first and second chain links involve that payment from Employer (first link) and the Renter (the second link).    Economically … how bad is it? We don’t yet really know how high the unemployment rate will get, though we expect it to be substantially higher than that of the Great Recession of 2008, when it was 10%.    Chain Link 2 to 3 is the Renter’s payment to the Property Owner. This is a link that you’re clearly quite concerned with. This is your rental income. This is the income that Jerry from Queens is trying to scrape together.    We don’t yet know what the eventual rent payment DEFAULT RATE will be, of course that’s going to vary among geography and asset type and many other things.    But be aware that at this point, about 75% of Americans have lost at least 25% of their income. About ¾ of Americans have lost ¼ or more of their income.   As you know, during coronavirus, most areas have an eviction moratorium. Meaning that if the tenant can’t pay the rent, you can’t kick them out for a while.   Now, what if you - the income property owner - Link 3 - don’t have enough rent income to pay the mortgage to Link 4, which is your bank or your loan servicer?   If this is your situation, you want to call the company that you pay the mortgages to. You pay your mortgages a mortgage servicer.   Now, what is a “mortgage servicing company”, anyway?    A mortgage servicer is the company that handles the day-to-day administrative tasks of your loan.    They send you your monthly statement, they receive your payment, and they manage your escrow accounts.    This is different from your mortgage lender. Your lender is the financial institution that gave you the property loan in the first place - back on your closing day.   So that is the difference between a mortgage LENDER - and the servicer whom you’re dealing with now.   Now, a mortgage servicer could either be a bank or a non-bank.   A bank “mortgage servicer” would be names that you’ve heard of like Chase or Wells Fargo.   A non-bank “mortgage servicer” could be a name like Suntrust Mortgage or AmeriHome. They’re names that you’re less likely to have heard of.    So, to review, money flows from your tenant’s employer, to your tenant, to you (the investor), to the fourth chain link, which is this mortgage servicer.   Now, if your mortgage is backed by the government (those would Fannie Mae, Freddie Mac, VA, FHA, or USDA -  and it often is) - if you tell your mortgage servicer you're having financial trouble because of the pandemic, your mortgage servicer has to let you stop paying your mortgage for up to 180 days - that’s six months - with the possibility of another six month extension after that - and you will not have to pay late fees, and there will not be any foreclosure on your property, and there will not be a ding on your credit score either.   It gets even better than that. Because at last check, there isn’t any additional interest beyond your scheduled amounts accruing on your missed payments while you’re in forbearance either.   Now, you WON’T magically see a portion of your principal balance disappear though.   This all pertains to both primary residences and your rental properties for government-backed loans.   If your loan isn’t government-backed, you still might receive some similar-type of relief.   This is what is being granted to you during these exceptional times. And the mortgage servicer isn’t going to ask you for a bunch of paperwork or documentation of your hardship either.   But they might just ask you some questions over the phone - details about your income, expenses and other assets, like cash in the bank.   They’re just granting you the forbearance - letting you postpone your mortgage payments.    Now, that must sound great. And it is a good start.    Look, if you CANNOT make your payment due to economic hardship, then you should ask for the forbearance.    And don’t just stop making payments if you CAN’T make payments. Alright, you can’t do that. You DO have to ask for forbearance. But it will be granted.   Now, what if you CAN make your mortgage payments and you call up your loan servicer and ask for forbearance.    In this case, say that your total monthly rent income is $10,000 but you only got paid $9,000 of rent this month due to pandemic layoffs.   And your total mortgage payments are only ... $8,000.    Well, you could make the payment but you don’t have to.   So … could you pocket your $9,000 of rent  this month and skip out on paying your mortgages completely & then have a $9,000 cash flow month instead of your normal $2,000 cash flow month?   Yes, you probably could! And this could totally feel like a windfall to you!   But … that would be dishonest - and it could come with consequences.     I’ve talked to two mortgage lenders this last week to find out what’s REALLY going on out there.    I learned about one case where, a borrower asked for forbearance, they were granted it, it didn’t ding that borrower’s credit SCORE.    However, on their credit REPORT, it is marked “Forbearance” on that report.    Hmmm … you wonder if this will impact that borrower’s creditworthiness in the future.   Here’s the other potential negative consequence if you are granted forbearance.    Again, forbearance means the ability to postpone payments.   What’s going to happen in the future? Well, no one really knows with any of this. This is uncharted territory and I can’t underscore that enough as we deal with the economic fallout of the pandemic. The situation changes quickly here.   When are you going to have to MAKE UP those payments? If you get six months of forbearance, would you owe six months of payments all at once - only six months from now?   If so, that probably won’t help you out. Because if your tenant - God forbid - missed six months of rent payments, they’re not going to make one lump sum rent payment for six months worth of rent.   However, for you, if you get forbearance, it appears more likely that your payments - will just get tacked on to the end of your loan - without any interest on top of what’s scheduled.   Now, that outcome would be … pretty awesome.   Alright, so we’ve established that you can take a pause from paying your mortgage loan servicers.   But here’s the crazy thing. The fifth and final link in the chain is the Mortgage-backed security holder. They get their money from the mortgage servicer.    Well, where is the servicer supposed to get the money if people like you - the property owner - declare forbearance.   No one knows that answer. That hasn’t been worked out yet.    Right now, the total share of loans in forbearance is 6%.    But, that number is going to go higher so the mortgage servicing industry has been crying out for help - your SunTrusts and AmeriHomes of the world.   Last week, a plan had come together such that mortgage loan servicers would only have to forward four months of missed payments to MBS investors.    But a lot of servicers don’t have that kind of money lying around.    Now, Wells Fargo, obviously, is a big bank and they do some servicing as well.  There's still lots of big banks servicing mortgages. And the big banks are actually in pretty good shape right now. They have enough money that they can deal with this situation for a while. They're stronger now than they were in the 2008 financial crisis. And since the financial crisis, nonbanks have been taking a bigger and bigger share of the mortgage servicing business.  And these nonbanks - like SunTrust and AmeriHome - have much less money on hand than banks do, and they're not allowed to borrow from the Fed like a bank.  And even in the good times of the past few years, there were all these reports coming out saying, you know, if the economy were to ever turn down and people stopped paying their mortgages, these nonbank servicers are going to be in trouble. This is what needs to be fixed right now - this connection between chain links 4 and 5 - from servicer to MBS Investor. The aid for servicers will probably be there.  The government is typically there to save most anything to do with homeownership. Well, those are the five links in the follow-the-money chain - from employer to tenant to you, the investor, - to the mortgage loan servicer - and finally, to mortgage-backed security holder.  There’s more that I can explain there, but I won’t, because it could be speculation - so we’ll see what happens next there. Let’s get back to you. I said that I suggested mortgage loan forbearance if you need it. Should you get a mortgage forbearance if you don’t need it?  No. If you don’t need it, don’t take it.  Now, why would I say that? Well, there could be some upsides to taking it.  But it puts you at some risk, like I mentioned and there is more that is absolutely vital for you to consider. I’m going to talk about that in a few minutes.  We’re talking about following the money along five chain links, and mortgage loan forbearance here on Get Rich Education, Episode 290 … as the world gradually has more & more bad haircuts as the coronavirus pandemic inches on … and you’re wondering if you’ll have “actual weekend plans” in your life ever again.    Coming up in the next few weeks here on the show, we’ve got a lot of great material. New York Times bestselling author John Assaraf will be here with me on Get Rich Education as we take a deep dive into abundance mindset during tough times … … and a lot of other integral shows here as I focus on providing you with actionable guidance that you can use on economics and real estate amidst the pandemic. I primarily reach you in two ways. There’s our audio show here, which as you know is released every Monday. You’ve probably been listening for years.  The other way is through The DQYDD Letter, which is e-mailed out about weekly. And lately the valuable letter is being sent to you on either a Wednesday or Thursday. There is so much fast-changing news amidst the pandemic that the “Don’t Quit Your Daydream” Letter really supplements this show here well.  That’s why it’s never been more important for you to subscribe. The letter is free, and all you’ve got to do is sign-up now at GetRichEducation.com I’m coming back with more. I’m Keith Weinhold. THIS is Get Rich Education. (RESOURCE PROVIDER SLOTS) Hey, you’re back inside the show that’s created more financial freedom for busy people just like you than nearly any show in the world.  This is Get Rich Education. I’m your host, Keith Weinhold. Should you get a mortgage loan forbearance if you don’t need it?  No. If you don’t need it, don’t take it. That is my opinion. Now, why would I say that? Well, there could be some upsides from you taking it if you don’t need it.  But it’s not quite like it’s free money. It puts you at some risks, like I mentioned and … some of this comes down to a question of ethics & greed. Now, I don’t know what Jerry, the property manager & investor from Queens, New York that I talked about at the top of the show -  is going to do with his situation. Me, I have … gosh … it guess it’s not quite one hundred thousand dollars worth of mortgage payments that I make monthly … … but it’s well into the tens of thousands every month. I still have a good monthly rent collection. But I have some tenants that can’t pay due to losing their job from coronavirus. But … I CAN make all of my mortgage payments, so I don’t have any plans to get forbearance now or anytime in the foreseeable future.  If I have agreed to pay someone, and I can afford to pay someone, then I pay THAT someone. That’s just treating other people well. What is greed, anyway? Wanting more money is not greed. You want financial betterment just like I do and most anyone does.  But padding your own cash reserves by pocketing your tenants’ rent and then not paying your mortgage loan servicer - that’s greed. Because I’d be profiting from hurting others. If I don’t make a payment, there are people counting on that payment - in either that fourth or fifth chain link - that servicer or that mortgage-backed security investor.  Do you know what’s really happened recently? I know about an investor that closed a mortgage loan (and mortgage loans are still closing here in the pandemic, of course, but under tighter lending guidelines) - but this investor closed, then declared forbearance almost immediately - as soon as he practically could. So he missed his very first payment, and then the bank put him in a status of what’s called “first payment default”.  Well, then the lender can’t sell that loan to a servicer & and then that bank has got to keep that losing loan on THEIR books. Also, that “first payment default” status is tied to that borrower … and will that come back to bite them? I don’t actually know, but it’s probably not going to help them. Could that borrower have made payments if they were able to qualify for the loan at the closing table just a few weeks ago? Yeah, probably.  If that impacts that borrower’s creditworthiness down the road, it’s pretty hard to feel sympathy for them. It’s times of adversity like this when one’s ethics show through. Cheating the system tarnishes your character and it screws up the system for the honest people … where the taxpayer might have to end up paying for it. So, either I can be part of the problem or part of the solution. I know what side I’d rather be on … and you can decide for yourself. You can call it what you want, “karma”, or whether you’re religious or not, from Christianity, “The Golden Rule” is “treat people how you would want to be treated.”  It’s a maxim in other religions too. But it’s really just being a decent human being. We don’t want to take advantage of a crisis by disadvantaging others. That’s what looters do. Fortunately, we have an audience here that does want to do the right thing. Like I say, do the right thing before you do things right. To summarize part of what you’ve learned today. There are five chain links in the follow-the-money path that the pandemic is pressuring - they are employer … to renter ... to property owner … to loan servicer ... to finally the MBS Investor.    Loan forbearance means that you have the ability to postpone your mortgage payments - and that’s on both your primary residence and your rentals.   Forbearance is being easily granted on most loan types - with some clear guidelines for gov’t-backed loans. But you must ask. If you need it, please DO ask. If you don’t need it, please DON’T ask.   As a reminder, news changes fast and one mortgage loan servicer might outline different terms for you than another servicer does. In fact, there is so much fast-changing news amidst the pandemic and strange economic aberrations like oil prices going negative last week. There’s such a glut of oil supply, that oil is being treated like junk.  Just like you would have to pay another person to take your junk, oil producers are having to pay people to take their oil.  About ten days ago, Chase stopped accepting new Home Equity Line Of Credit applications. Customers with existing HELOCs will be able to continue to draw funds on those lines of credit, but the bank is not accepting applications for new HELOCs. Of course, the stock market has been more volatile than usual. Housing is way more stable, but it’s still too early to look at pandemic effects on housing PRICES.  Early indications show that there is even less housing SUPPLY on a market that was already undersupplied, so that’s substantial.   There is so much changing more quickly now, that the “Don’t Quit Your Daydream” Letter really supplements this audio show here. I don’t think it’s ever been more important for you to subscribe. For example, in some good news, a recent letter informed you that any 1031 Exchange that you do with a deadline between April 1st and July 15th of this year is now moved to July 15th, and other things like that.  Get the “Don’t Quit Your Daydream Letter" free, at GetRichEducation.com I’m Keith Weinhold and I’ll be back next week to help you build your wealth. Don’t Quit Your Daydream!

Real estate investors should know something about Florida. Why? Migration. Navigating today’s property market takes more care than it did last year due to the pandemic. Primary residence buyers are being shut out. Investment property buyers are better off because “wannabe” homeowners must become renters due to higher mortgage qualification standards. To profit today, focus on your tenants income source and positive migration trends. Florida leads the U.S. in positive migration; it’s likely that the trend will continue. Why do people keep moving to Florida? Low cost of living, no state income tax, sun & warmth, job diversification & growth. New construction homes for investors are on infill lots, 4 bed, 2 bath homes are $250K.    Greater Orlando & Central Florida attracts nearly 10,000 new residents every week - from The Space Coast in the east to Polk County in the west. Learn more at: www.GetRichEducation.com/Orlando New const. SFH prices start at $139,900 3/2/1 on ¼ acre. Duplexes and townhomes are also offered. __________________________ Resources mentioned: Get report & connect with provider: www.GetRichEducation.com/Orlando Ray Dalio on coronavirus economy: Video link Community & neighborhood ratings: niche.com Mortgage Loans: RidgeLendingGroup.com QRPs: text “QRP” in ALL CAPS to 72000 or: TotalControlFinancial.com By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. New Construction Turnkey Property: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold

Join Oscar and German Buendia (The Millionaire Enlisted Podcast) and Bernard Reisz (ReSure LLC) as they tax about taxes, 401K’s, IRA’s, and QRP’s. Bernard is a CPA that’s got a passion for taxes, financial strategy, and helping people. Why do people put their money into stocks, bonds, and mutual funds instead of real estate? Bernard gives us the answer. He tells QRP’s and IRA’s apart, the nuances in between, and shatters false myths around them. By the end of the episode, you will put more importance on getting education and expertise and know where the blacks and whites are, along with the gray areas. Stay tuned to the podcast! ~ About Bernard Reisz: Integrated financial & tax expertise with a focus on real estate, entity structuring and self-directed retirement accounts. Implementation, compliance advisory, & tax strategy for Checkbook Control Retirement Accounts, including SDIRA, IRA-LLC, IRA-Trust, QRP, & Checkbook 401k plans. Bernard Reisz CPA, empowers individuals to optimize their finances, using proactive and innovative strategies. He provides an integrated approach to tax and financial planning for real estate pros, focusing on their unique profiles and opportunities. Bernard is the founder of 401kCheckbook.com, which gives investors direct control of their tax-sheltered funds for real estate equity and debt opportunities using Checkbook Control IRAs, Solo 401(k)s, and Checkbook Life Insurance. He is also the founder of AgentFinancial.com, which provides tax, entity, and financial services to real estate professionals, including real estate agents, real estate investors, and mortgage brokers. Prior to founding ReSure, Bernard served as Director of CoMetrics Partners, managing an array of engagements involving financial consulting and due diligence. Bernard advised owners of closely-held middle-market companies on advanced tax mitigation strategies. ~ You can find Bernard Reisz on... Website: https://www.401kcheckbook.com/ LinkedIn: https://www.linkedin.com/in/bernard-reisz-cpa --- Connect with Oscar and German! Website: http://themillionaireenlisted.com/ Instagram: https://www.instagram.com/themillionaireenlisted/ Twitter: https://twitter.com/Millionaire_Enl Facebook: https://www.facebook.com/themillionaireenlisted YouTube: https://www.youtube.com/channel/UCHQxZM5HVM3LqNgk7jLTCbw

You get a clear answer to that question from both me and the Chief Economist of the oldest investment firm of its type in America, as he joins me today. Recession and depression differences are defined. Learn what created the 1930s Great Depression and 2000s Great Recession.  You’re now living in what I call: “The Great Shutdown Of 2020”, induced by the coronavirus. This is an economic crisis on top of a health crisis on top of an oil shock. The Spanish Flu Pandemic of 1918 created a 7-month U.S. recession. Real estate flippers and developers are more at-risk than buy-and-hold investors. A doubling of the U.S. currency supply is possible in the next year or two, stoking inflation. I introduce the “Inflation Triple Crown” concept that benefits leveraged real estate investors. Brian Beaulieu, CEO and Chief Economist at ITR Economics since 1987, joins us to forecast your economic future amidst the current coronavirus pandemic. He says we’re in a recession now, thinks the economy begins growing again by 2020 Q4 with a “V” shaped recovery, and inflation accelerates in 2023. Brian forecasts interest rates’ direction, and tells us if we’ll have negative interest rates. He is bullish on buying real estate. I think that since America keeps writing checks for everything, then they should fund an initiative to rebuild our infrastructure. We need that anyway, and it puts people to work. Then, you would want to own real estate near those public works projects - new bridge, interchange, or port. __________________________ Resources mentioned: ITR Economics’ Free 90-Day Forecasts: Text TR_TRIAL to 33777 Insurance For Rent Payment Default: Rhino: https://www.sayrhino.com/  Steady: https://www.steadymarketplace.com/ Core: https://corehomeinsurance.com/ Mortgage Loans: RidgeLendingGroup.com QRPs: text “QRP” in ALL CAPS to 72000 or: TotalControlFinancial.com By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. New Construction Turnkey Property: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold

It grows through recessions. No tenants. No loans. Own trees and the land beneath it, titled how you choose. Experience growth in both the timber size, and often, value of your investment. A long-revered timber type is teak. Its natural oils make it unusually resistant to fire and termites. Demand - Today, teak is used in flooring, countertops, veneer, furniture. It’s been used in boatbuilding 2,000+ years. It was used on The Titanic. Supply - Teak is being harvested at 10x its replanting rate. I first learned about lumber in my youth when I spent a summer doing forestry and timber-marking work in upstate Pennsylvania. You can own teak trees and the land beneath it, ¼ acre at a time. Get started with your free Teak Resource Guide at: www.GetRichEducation.com/Teak  Trees grow through recessions, wars, stock market crashes, and real estate market crashes. Teak expert and friend Rachel Jensen joins me in discussion. Plantation teak grows well in Panama and Nicaragua. Teak is native to southeast Asia and India. You can own teak at age: 0, 14, or even 20-year-old teak. Cash, bitcoin, IRA funds may be eligible for funding. There are discounts for GRE listeners. Teak field tours are offered. Investors have the option of gaining second residency in Panama or Nicaragua. It is a nice “Plan B”.  __________________________ Resources mentioned: Free Teak Resource Guide: GetRichEducation.com/Teak Mortgage Loans: RidgeLendingGroup.com QRPs: text “QRP” in ALL CAPS to 72000 or: TotalControlFinancial.com By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. New Construction Turnkey Property: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold

A 10-step plan to ensure that your tenant pays the rent is revealed. In order, they are: proactivity, commitment, empathy, requirement, options, late fee, installments, security deposit, assistance, documentation.  Real estate investors have time to react to the pandemic. Stock investors often didn’t. They lost 10%, 20%, 30% within weeks. Learn how volatility hurts stock investors. If the pandemic were as visible a threat as a fire-breathing Godzilla, more would adhere to shelter-in-place orders. For active real estate offers, pay more attention to where the tenants’ income originates. Large retailers are hiring, small retailers are firing. Caeli Ridge, President of Ridge Lending Group joins me to tell us about how coronavirus has changed the mortgage lending landscape. Jumbo loans and non-QM loans are no longer offered. Credit score, DTI requirements could soon become more stringent. Verification of employment now occurs right before loan funding. Mortgage rates still hover near historic lows. Loan forbearance, loan modification discussed. __________________________ Resources mentioned: Mortgage Loans: RidgeLendingGroup.com QRPs: text “QRP” in ALL CAPS to 72000 or: TotalControlFinancial.com By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. New Construction Turnkey Property: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold

Unemployment is rising. Mortgage rates hit record lows two weeks ago. Stocks have fallen 32% from recent highs. Oil has fallen with a thud.  Your life has changed in order to control the spread of the novel coronavirus. (**The entire episode transcript is below. You can read along as you listen.) Fannie Mae, Freddie Mac, and HUD have suspended foreclosures and evictions for at least 60 days. This could soon be extended to a year.  The IRS tax filing deadline moved from April 15th to July 15th. There are opportunities for you today that you’ve never considered before. Recessions are normal. They occur every 7 years on average. In three of the last five recessions, real estate values appreciated. Consider drawing against your HELOC before it’s frozen. Bill Gates’ epidemic prediction audio clip played. Stocks: the bull market died of coronavirus. I discuss my recent chats with national Mortgage Loan Officers. Good news? Shelter-in-place means you might have the time with your family that you’ve always wanted. __________________________ Resources mentioned: Coronavirus forbearance is here: Housing Wire article RE appreciated in 3 of last 5 recessions: Article & Graph Mortgage Loans: RidgeLendingGroup.com QRPs: text “QRP” in ALL CAPS to 72000 or: TotalControlFinancial.com By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. New Construction Turnkey Property: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold   Complete episode transcript:   Welcome to Get Rich Education, I’m your host, Keith Weinhold. As the pandemic unfolds, how do you best position yourself as an investor to be profitable and mitigate loss?    We’re talking about the real estate market, the stock market, and specific, actionable things that you can do for your family and your real estate. Today, on Get Rich Education. _________________________ Welcome to Get Rich Education, I’m your host, Keith Weinhold and no matter where you’re listening to us - any of the 188 nations - your life has changed … due to the pandemic.    Just when you learned to replace your handshake with an elbow bump, now you can't do either one.   Yes, your life looks different now. We are here in the social distancing era.   With major events all cancelled and the closure of businesses & schools, & entertainment venues; it is clear that the global efforts to slow the spread of the coronavirus is an unprecedented experience for you and I.   With people needing to stay home, it creates some new ways of socialization.    For my haircut this week, I don’t think I’m going to go out to get it. I’m hoping that my wife can cut my hair at home.     I can’t go to the gym. Thank goodness that I have a home gym - modest as it is. This is literally life-changing - altering the patterns and habits of you & I’s daily life.   You might see more of your spouse now. You might be homeschooling your kid now.   This is an emotional process for you and I - your relationships with people & things have changed.   You’re now more likely to be listening to me from home rather than out & about - not from work.    But wait. Now, for you, maybe work ... is ... home. Kinda.   If you’re working from home, you’re now ...   ... about to find out which meetings really could have instead been ... an email.   Yes, it's simply a strange time to be a human being.   The pandemic has stirred up more uncertainty than just social faux pas and awkwardness.   It's created a breathtaking 32% stock market drop - more on that later. The slowing economy means that oil prices have fallen with a resounding thud. Mortgage rates hit record lows two weeks ago.   The combination of those things might make you, the REAL ESTATE investor, giddy with your predicament.   You might even have - what feels like - an extended adult Spring Break at home with your family.   But the larger economic slowdown can ensnare everyone - yes, the real estate investor too. Some help is on the way.   Just last week, Fannie Mae and Freddie Mac announced that they are suspending foreclosures and evictions for at least 60 days - so we’re talking about a lot of conventional loans there.    HUD is doing the same thing. HUD basically means FHA loans.   So I guess that property owners don’t have to pay their mortgages and tenants don’t have to pay their rent for a little while either.   That was followed by the state of New York declaring that certain borrowers in the state could forgo their mortgage payments for up to 90 days.   And there’s just so much NEWS about payment forgiveness and everything else related to the economy and the pandemic that it can be difficult to keep up.    I’ll tell you, I’ve had to scramble - more than normal this week - to pull together the more relevant stories that affect you - because so much is changing so fast.   Treasury Secretary Steve Mnuchin said just last Friday - three days ago - that the deadline for Americans to file their taxes would be pushed back from April 15 to July 15.    That’s got to be welcome news!   In fact, Mnuchin tweeted: "All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.”    That’s what he said. That’s a 90-day extension. Some relief from the IRS for you.   Now, how long will this kind of alternate society that we’ve now reluctantly formed linger on?    How long will it last?    Self-isolation and playing the ol’ Risk board game or Battleship with your kids might be kinda cool at first - but it gets a little old after a while.    It really gets old once you find that your kid is improving at chess faster than you and he’s starting to beat you.    Well, no one really knows. No one in the world knows how long it’ll last.    So therefore, it’s hard to know whether people are overreacting or underreacting to the news. It’s really hard to know.    Will this last one month? Six months? Or even longer?    The best, most trusted source, I know of thinks that this will probably be with us … through June. Yeah, that’s three more months.   Now, it might peak before that time, but who knows? And a lot of forecasts change … because, again … there are a lot of unknowns here.    But there are a few things that I do know. So let’s think about what we do know.   There will always BE an economy - even if things got far worse.    There will always be an economy as long as there’s a civilization.    Sheesh, there’s an economy in Leavenworth - a maximum security prison.    When this thing ends, if you’ve got a friend or a tenant or yourself that’s been laid off - you’re probably going to return to your job.    But some people might never return to their job. You might see this - as an opportunity.   If you have - or have had - a job that you’re not in love with - this could give you time to find out what you’re good at & what you like doing rather than working for a paycheck.   Use this time to ultimately find out what you want. Then learn some new skills at the Khan Academy online - or somewhere else. See this as an opportunity.   There’s an old saying. If your neighbor loses his job, it’s a recession. If you lose your job, it’s a depression.    And more people are probably thinking about that today ...   But recessions are indeed - a frequent occurrence in the modern economy. This 11 year economic expansion, was an all-time American record.   In response to the pandemic, The Fed is effectively printing tens of billions of dollars - and more - to help keep banks liquid.   This is a process … that devalues the dollar. This is inflationary - which is good for borrowers long-term, and this dollar printing makes investors scurry for real assets that can hold their value.    Yes, real things that can’t be inflated away with profligate monetary policy. I’m talking about assets like water, and timber, and real estate - especially residential real estate.   Now, if for any reason, your income is disrupted, either because you’re out of work or your tenant is having trouble making rent payments ...   If you're losing income and must play defense, and you’re a homeowner, you might have something to work with. Relief can come from your Home Equity Line Of Credit (HELOC). You can make withdrawals for emergencies.  Sure - I’ve been talking for years here about how if you’ve got excess equity in your home, you can originate a HELOC. Since home equity is unsafe, and illiquid, and it’s rate of return is always zero, you can use that excess equity in your home. MAKE it liquid. The HELOC can come in the form of a second mortgage. At last check, on a primary residence, you could get an 80% combined loan-to-value ratio HELOC. How that works is if you have a $500K home, you could have $400K of debt against it. That’s the 80%. So then if currently, your home has a $300K loan balance, you can potentially get a HELOC second mortgage for another $100K.  OK … your $300K first mortgage plus $100K HELOC has a sum of $400K - which is 80% of your home’s value. So now, you’ve got $100K out of your home.  The way that this $100K HELOC works is that your interest rate generally follows the Federal Funds Rate - which the Fed has essentially dropped to 0%.  Now, you’ll pay a margin on top of the Fed Funds Rate - but HELOC rates are really low now.  Their interest is often tax deductible - and you can spend the HELOC funds on anything at all.  You also have the flexibility of making interest-only payments on the HELOC - or paying back extra toward the principal if you prefer. Nice option there.  And I’ve gone deep on how HELOCs work on prior shows, so I won’t do that here.  But here’s the message if you think that you need some - or want some - liquidity.  Originate your HELOC and consider drawing against it - which means pulling the money out - before the bank FREEZES withdrawals from your HELOC funds.  Look, here’s what happened during the 2007-2009 Great Recession. Homes were losing value then, and banks flash-froze HELOCs. It happened to me.  I still remember getting the letter - it was from a major bank that you’ve heard of.  I do remember getting that letter from the bank because I was frustrated that they froze my funds - which was equity in my home that I had previously had access to. So, I’ve told you on past shows, that I can’t think of any reason not to have a HELOC second mortgage on your home, as long as you have adequate equity in it. That way you can choose to either use it by drawing against it - or not.  My point today is - consider making a withdrawal on that HELOC before its frozen. Now, say you do that and you’re paying a 5% interest rate on that money.  Maybe wherever you put those borrowed funds, now you’re making more than 5% on them because you’re taking those funds and putting them on offense.  If so, that’s great. That positive arbitrage. Gotta love that.    But what if you take those HELOC funds that you’re paying 5% interest for and you’re playing DEFENSE, and you have them invested in a vehicle that’s MAKING less than 5% interest for you. You know what I would say? What you’re doing is like … you’re paying an insurance premium. You’ve got access to the funds, you’re keeping them liquid, you could be hemorrhaging a bit each month, but it’s like paying an insurance premium in order to have access to your funds. I don’t like to tell people what to do. I like to tell people what I do, and I provide ideas and information here. Now, if you don’t need funds or want funds, well, then there’s less reason to tap your HELOC. Remember too, a high mortgage balance is a great asset protection tool against a bank foreclosure. In an adverse circumstance, the bank doesn’t want to come after you if you still owe $400K on the loan. But they’ll come after the family that only owes $40K on their loan - because the bank could get the property as collateral, and only lose out on the $40K that they would have had coming to them. See, the bank doesn’t want to foreclose on your property where you, the homeowner, would have still owed them 4-HUNDRED K. My point is - if you need to play defense, have a HELOC and consider using it before it gets frozen - IF it gets frozen.    It might not get frozen. See, a big reason that HELOC draws were frozen during the Great Recession 12 years ago is that housing was at the CENTER of the 2007-2009 Great Recession.    From the time that those HELOCs were originated, properties had lost value. As they lost value, that means loan-to-value ratios went up, often in excess of 100%.    So banks froze HELOCs so that they didn’t get exposed to that risk. If you’ve got zero equity in the home or skin in the game, you’re more likely to walk away - as a homeowner.   But see, if we have a pandemic-induced recession, it’s NOT housing-centered like the Great Recession was - with their irresponsible lending practices and overbuilding that occurred then.   Today, we’ve got RESPONSIBLE lending practices and an UNDERsupply of homes. We’re UNDERbuilt.   So, the Great Recession was different - and special.   Now, I don’t know whether we’re set up for a pandemic-induced recession or not. But I’d say that there’s a good chance that we’ll have one. I’d say, a more than 80% chance that we’re in one now.   We don’t actually know that we’re in one until in the future, we look back and see two consecutive quarters of year-over-year GDP contraction. That’s the definition.   But we’re definitely due for a slowdown. We’re in one now.   It’s worth remembering that recessions are actually a normal part of the economy. We have one every 7 years or so.   Our previous five recessions began in 1980, another one in 1981, then 1990, 2001, and finally the aforementioned Great Recession beginning in 2007.    In three of those five recessions - three of the last five, do you know what happened to home prices.   Home prices went up. They INcreased in 3 of the last 5 recessions.    Home prices increased in value anywhere from 1.9 percent to 4.8 percent. I’ll link that in the Show Notes for you.   So, a recession definitely doesn’t mean a drop in property value. Residential real estate is a recession-resilient asset class.   The thing that you need to keep your eye on is, is your tenant keeping their job during this crisis so that they can pay the rent.    By the way, do you know the difference between an epidemic and a pandemic?   As Oxford defines it: An epidemic is a widespread occurrence of an infectious disease in a community at a particular time.   A pandemic is a disease prevalent over an entire nation or the world.   They mean about the same thing, but the pandemic is on a larger scale.   Now, MicroSoft co-founder Bill Gates has received attention recently in predicting that a pandemic was potentially humankind’s greatest understated threat.   In fact, let’s listen to this short clip - this is Bill Gates, more than three years ago in Davos, Switzerland:   Bill Gates clip: “An epidemic - either naturally-caused or intentionally-caused - is the most likely thing to cause, say, 10 million excess deaths. It’s pretty surprising how little preparedness there is for it.”    Yeah, Bill Gates said a lot more than that about it. But he’s appearing to be rather correct here.   Well, what has administration in the United States done for a response? Our political leaders?   Well, initially, Trump and company seemed to throw more money & fewer regulations at the problem.    That’s changing somewhat, as we’ve got more social controls and border closings now.   With the list of these administrative & … policy news stories longer than a Walgreen's receipt, the least you should know is that President Trump and Congress are aiding homeowners and renters alike.   Free testing, and an expansion of unemployment insurance.  A stimulus package of one trillion - with a “T” - one trillion dollars or more that looks to involve direct payments to American households … is really going to help provide relief to people.  There is lots of precedent for government bailouts in times of crisis.    The U.S. government provided $15 billion to airlines after 9/11, $700 billion to banks to army-crawl through the 2008 financial crisis, and $17 billion to automakers just after that.   Whether you see bailouts as the right way to do things or not, there is that precedent.   Fortunately - some of that help should include your tenant. We might see multiple injections of $1,000 each or more - directly into consumers’ hands. That’s the plan that’s formulating - just write virtually everyone a check. And $1,000 means more to your tenant than it does to you. This can really help Trump and Congress “fill the gaps” between cushions like paid leave and unemployment insurance.   Though that’s gonna cause more long-term taxpayer DEBT - yes, I think a lot of people need the relief in the meantime.   Think about it this way:    To save their economies over the long run, countries around the world are actively putting themselves into recessions.   Productive nations are actively plunging themselves into recession left and right.   Can you imagine that? But even though I’m a finance guy and a real estate investor, I think that it’s the right thing to do.   As odd as it sounds, the best way to heal the likely recession, is not to try to fix the recession. It’s to get into a recession by killing activity in order to control the virus.   The best way to heal the economy is to get people to stay home, stop the spread, and end this sooner.   Look, if you’re riding a bicycle and get a flat tire because there are nails on the road, well then, you don’t get to your destination … by patching the hole in the tire over & over again.   You get to where you’re going by cleaning up the nails on the road - which means that you & your bicycle go nowhere for a while - and then when the nails are picked up, you quickly roll along to wherever you’re going just like the economy should quickly roll along nicely - like it was - before the pandemic hit.   The fastest way to fix the economy is to stop the virus.    As we’ve now learned, even though you might feel like you’re in a digital age with TikTok videos, and an app that digitizes your dinner receipts, and everything else ... Humans still generate trillions in economic activity by coming into close, physical contact with one another—sitting at restaurants, assembling auto parts, traveling on planes, getting haircuts.  But public health officials stress that to slow the spread of the coronavirus, we must all maintain a safe distance from each other, even if we’re healthy.  But that still doesn’t square with our economy’s structure.  Be mindful that recessions and surprises happen constantly. But this one feels a little more surprising for a few reasons - a virus is sort of intangible - you can’t see it - and there’s the fact that we just had a great loooooong run of 11 years.   That was the longest economic expansion in American history.   I think that this pandemic is the biggest news story since 9/11 - where you’re just kind of like, “I can’t believe this is happening.” But this WILL pass. It always does.   Look at what we’ve had in the last - not even 20 years:  9/11, Hurricane Katrina. The great recession. Superstorm Sandy. And now, you might call this the great shutdown.    With the economic slowdown, I’d expect sudden, deep, and brief.    I hope and expect that it will be sudden - it already has been sudden, that it will be deep - with massive layoffs, - and that it will be brief.   There are two prior Get Rich Education episodes that are getting a lot of attention right now.   One of them is named “A Recession Is Coming”. I released that in November of 2018.   One year later, I released an episode named “Planning For A Recession”. That was released in November of 2019, just four months ago.   “A Recession Is Coming” is Episode 215, and “Planning For A Recession” is Episode 265 if that makes it easier for you to find them.   I’m coming back with more here - with “Your Pandemic Investing Strategy & Mindset”. This is “Get Rich Education”. ____________________________   Hey, you’re back inside Get Rich Education. And welcome, you’re squarely in the #WFH Era.    The “Work From Home” Era.    Yes, this alternate world where working from home is NOT frowned up - and going into the office IS frowned upon. I’m your host, Keith Weinhold.    I’d like to emphasize that no one really knows about the next turn that society and the economy will take during this pandemic. That’s because we are in uncharted territory.   Because I don’t think very many people were alive to remember the Spanish Flu of 1918.   As far as the most recent territory that HAS been charted ...   Last Friday, stocks, as measured by the S & P 500, fell more than 4%. So as of today, Monday, March 23rd, 2020, stocks have now fallen more than 32% from their recent high.   How many people with 401(k)s have lost 32% of their account’s value? Some of them, even more, oh … and that’s just in the last month or two.   And last week, stocks posted their worst week since the height of the financial crisis.   The bull market died of coronavirus.    That’s what happened.    Now, why am I talking about stocks more than usual both this week & last - since I’ve talked about the pandemic quite a bit on both of these shows?   It’s because stocks are often a LEADING indicator of what investors expect is coming.    (And note that I’m being kind by calling stock buyers true “investors”. A lot of them are just speculators.)   Now, a stock bear market is when stocks fall 20% or more from a recent high.    Do you have any idea how good of a predictor a bear market is of a recession? Well, I can tell you.   73% of stock bear markets have been accompanied by a recession.    As a forward-looking mechanism, the stock market usually sends warnings about the economy before shrinking growth shows up in the data.   So yes, in the 11 stock bear markets we’ve had since WWII, 8 of the 11 have resulted in a recession. That’s that 73%.   While it remains to be seen, real estate may be insulated to some extent - and that is because of tight residential inventory, high buyer demand, low mortgage rates, and lower prices for lumber and oil.   Recessions are not officially declared until the economy is already deep into them, or until after they’ve passed. We could look back later and say the recession started this month.   That’s because so much of our economy has to do with consumer spending - you buying a frappucino, you filling up your car with gas, you buying a boat.    Consumer spending accounts for about 70% of GDP.   Now, here on the show, we’ve spent the last few years focused on rental SFHs and properties up to four-plexes in size.   Though it’s still a developing story, there’s been some evidence that the ventilation system in larger apartment buildings - can transmit the virus. I … sure hope that’s not true.   I talked to two prominent national MLOs last week.   One of them is Caeli Ridge, where they are just doing a TON of mortgage origination business for both income property purchases and refinances.    The other mortgage loan officer is prioritizing new property purchases ahead of refinances there in THEIR office.   Low rates will outlast coronavirus.    Markets are anticipatory - so once the virus is past it’s peak, prices of real estate should be rather buoyant.   Be mindful too, that because we focus on investing in the United States Midwest & South - what i call the stable markets - instead of the volatile, coastal markets.   Just generally here, coastal properties and stocks here near the start of the decade - are very much alike.    They’re both overpriced, they’re both low yielding, and they're both susceptible to fall in value.   In these times, RE could be like the cleanest dirty shirt in the investment world - where you get the best risk-adjusted return.    Better than bond yields, and better than 2% dividends from the S & P 500.   With factories closed, supply chain kinks can LIMIT housing supply - and housing was already in short supply.   I think that some people either won’t have the confidence or capacity to buy a home.    Well, good. Then what they’ll do, is rent. You want them renting from you. More people in the renter pool … is to your advantage.   But they’ve got to have an income.   It’s important to remember that a pandemic is different from a financial crisis—bargain-basement interest rates can help keep businesses afloat, but the “social distancing” measures recommended by health officials mean canceling events and avoiding crowded places, which will curb spending.    Interest rates can’t fix that, though low interest rates are great for borrowers.   Think about how this has affected society - maybe in some other ways you haven’t thought about.    I know friends that spent months training for marathons that were cancelled.    MLB, the NHL, NBA seasons suspended.    Think about college & HS seniors that might have played their last game - without even knowing it. The pandemic ended their career - did you ever think about that?   Of course, this is minor. Some people have lost their lives, others have lung damage.   How’s your grandma doing - hopefully you get some time to video chat with her.   Maybe, just maybe, there is a huge silver lining to all of this with people staying home.    Maybe more time as a family is what we need. Maybe we’ve gotten so caught up in following the madness of busy-ness, and that this is a reset - and you can have some health benefits - and exercise more.    Maybe, after the short term economic losses have faded, some might place a much higher value on what is most important in their lives. Maybe.   We should salute and express our gratitude to the millions of frontline workers who are making tremendous efforts to help us all.    That includes our world class medical staff and others that you’re not thinking about too many others too - the calm grocery store & pharmacy workers and the tireless drivers bringing important supplies to hospitals & warehouses & stores & our own doorsteps.   Think about the spouses of some of those people too. My wife is a medical worker and I’m a little fearful that she’ll bring the virus home.   Realize that fear of the Coronavirus may keep people away from restaurants and small businesses who usually operate on small margins.    So here’s something you can do!!   From your favorite local business or restaurant, you can buy a gift card.    Buy it directly from that favorite place so they get the use of your money for the next few weeks or months.    Then ....when things have settled down, treat your sweetie to an evening out or buy something for someone and use your gift card‼ That’s something simple and actionable you can do to help the economy and your community.   Thank you delivery workers. Thank you doctors, nurses & medical staff. Thank you grocery workers. Thank you truck drivers.   If you like to see the headshots of the guests we have here on the show and see the show notes, it’s easy.    For this episode, #285, simply go to GetRichEducation.com/285   Now, we might only have the complete lyrics for the episode transcribed for maybe ten percent of episodes.    But for both today’s show and last week’s show, you can see the entire transcription there.   That way, you can read along as you listen, or share that transcription with someone else who, perhaps, wants this content but isn’t able to hear. So you can check out:   GetRichEducation.com/284 for last week’s show notes with complete transcription or  GetRichEducation.com/285 - for this week’s.   I’ll be back with you next week. If you want to help the economy, then, you might be best off, just staying home!    It’s part of doing the right thing before you do things right.    I’m Keith Weinhold. Don’t Quit Your Daydream!

The novel coronavirus threatens life, business, and the economy. 11 years of U.S. economic expansion could end soon. (**The entire episode transcript is below. You can read along as you listen.) Closed businesses mean that supply chains are disrupted. This could make it difficult for flippers and value-add apartment projects. Travel, hospitality, and leisure business troubles mean that short-term rentals like AirBnB will have high vacancies.  Short-term rentals cater to business travelers and vacationers - both vulnerable in this downturn. Long-term rentals are better positioned. As long as people are alive, they need a home. Mortgage interest rates have hit their lowest rate EVER since they’ve been tracked in 1971. The Fed made a 0.5% emergency rate cut. Expect more cuts. This punishes savers and rewards borrowers. Stocks recently fell more than 20% from their recent high; that's the definition of a bear market. Coronavirus’ effects are fast-moving and no one really knows the future. This is uncharted territory. With this in mind, I’d expect real estate to fare better than other asset classes. Also expect: Stronger: dollar, bonds, gold.  Weaker: many stocks & businesses, short-term rentals, oil, silver.    The unemployment rate will likely rise; I discuss what this means for your tenants. Low mortgage interest rates can be locked in for 30 years, outlasting the coronavirus pandemic. Check out our two new property providers in Orlando and Des Moines: getricheducation.com/orlando and getricheducation.com/iowa __________________ Resources mentioned: Properties, with two new markets: www.GREturnkey.com Recommended Coronavirus resource: Peak Prosperity YouTube Channel Mortgage Loans: RidgeLendingGroup.com QRPs: text “QRP” in ALL CAPS to 72000 or: TotalControlFinancial.com By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. New Construction Turnkey Property: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold   Complete episode transcript:   Welcome to Get Rich Education. I’m your host, Keith Weinhold. The coronavirus, COVID-nineteen, has infected humans and financial markets too.   This creates both problems and opportunities for you, the investor. Today, on Get Rich Education.   Welcome to GRE. From Uruguay to the Ukraine to the UAE to the USA and across 188 nations worldwide, this is Get Rich Education. I’m your host, Keith Weinhold.    Yeah, you’re back in that abundant place, where your QUALITY OF LIFE exceeds your cost of living.   The novel coronavirus (COVID-nineteen) that began in Wuhan, China in November of last year when it transferred from animal to human is poised to affect the economy of every world nation and every U.S. state.   It's not SARS or Zika.   This transmits easily and it is perhaps 20x more deadly than the common flu.   Some experts believe it's the worst outbreak in America since the Spanish flu of 1918.   That was the worst pandemic of the 20th century.   And you know what, it didn’t have to be this way ... with coronavirus.    As my chief informant on the matter, Dr. Chris Martenson says, it didn’t have to be this way.   Often placing the economy ahead of human life, health organizations and governments have often done a DEPLORABLE job of handling this, often understating the threat.   The World Health Organization was even reluctant to acknowledge that the coronavirus is a global pandemic … which it surely has been for a long time. Well, they only acknowledged that five days ago.   Well now that agencies weren’t preparing people sooner - coronavirus is poised to threaten even more people - which in turn, will make the economy even worse than if the threat had just been accurately represented in the first place.   I’m going to focus on coronavirus’ likely effects on real estate and the other financial markets shortly.   But let’s - you and I - outline this together first.   The virus causes only mild or moderate symptoms for most people, like a fever and cough …   … but it can progress to serious illness including pneumonia, especially in older adults and people with existing health problems.    The World Health Organization says mild cases last about two weeks, while most patients with serious illness recover in about three to six weeks. Based on what I said earlier, consider the source there.   My heart goes out to the victims of this - past, present, and future.   The most credible source that I follow thinks that the virus will reach its peak in the U.S. 1 to 3 months from now.   I've followed this story closely since January and if you receive our Get Rich Education newsletter, you’ve known for a while that my favorite source of TRUSTWORTHY coronavirus information was and still is: the Peak Prosperity YouTube Channel, which Chris Martenson hosts.   In fact, I’ve mentioned that resource in our GRE newsletter for you twice - the first time was back on February 6th.   So if you get the Get Rich Education Newsletter, you’ve had plenty of time to get in front of this.   You know, it’s interesting. I had Chris Martenson on the show here earlier this year and we talked about “The Fed” printing money. That was right before coronavirus literally went viral.   Before I tell you about the affects on your real estate - both good and bad - let’s establish a baseline here.   Coronavirus is threatening because it has a substantially higher R-naught value than the flu.    If the R-naught value is greater than 1, that means that one infected person will spread the virus to MORE THAN one person then the disease can spread.   The way a virus dies out is for it’s R-naught value to be less than 1. Then, one infected person, on average spreads it to fewer than one person.   Well, the common flu has an R-naught value of about 1.3.   Coronavirus (COVID-nineteen) is believed to have an R-naught value of more than 3 and maybe even more than 6. So it spreads easily.   It spreads asymptomatically - and that’s bad.    There’s no vaccine available - and most believe it’ll take a while to develop one.   And, you can find resources elsewhere on how to prevent the spread like social distancing, avoiding gatherings, and lots of handwashing.   But because this is an investing platform and I don't have a degree in pathology or epidemiology, and much of what I just told you there, I learned myself in the past month or two …   Let me now get into my lane: how do I think coronavirus will affect your money and your real estate?   Well, it probably already has.   Businesses are closing. Colleges have suspended classes. Many events are being cancelled or postponed.    SXSW in Austin, Texas was one of the first major EVENTS to be cancelled in the U.S. March Madness basketball won’t have any crowd there.   We’ve got an entire country - Italy - that’s essentially shut down.   When businesses close and more people work from home, this disrupts supply chains.    That COULD include less supply of sheet rock or faucet handles or whatever - and affect value-add properties because so much building material comes from China.   It could be a tougher time to be a flipper then if you’re about to start a rehab or if you’re in the middle of a rehab.   If you're upgrading an apartment building, that could slow things down. You need materials.    This may or may not create disruptions for turnkey property providers. We’ll see.    You’re in a better position if you’re a prospective turnkey buyer waiting on a rehab - maybe that’ll create a delay until your property is ready. Maybe it won’t.   China accounts for nearly 30% of world manufacturing.   But importantly, they also make component goods for finished products.   An American car can't be finished if it doesn't have the battery and exhaust system from China.   Virtually every major car company has a component made in China.    Now, I see conflicting reports of whether some previously closed Chinese businesses have really come back online or not. We need to learn more there.   Travel, hospitality, and leisure businesses are already hurting.    Now, where hospitality meets real estate, we’ve got hotel rooms, Bed & Breakfasts and short-term rental platforms like AirBnB and VRBO.   Like I’ve said before, and not too long ago on the show at all - is that these short-term rentals are not very recession-resistant.   That’s because short-term rentals cater to two main groups of people - business travelers and vacationers. That’s who occupies those properties.   Well, what are business travelers and vacationers doing right now? They are postponing travel or cancelling travel left-and-right due to coronavirus concerns.   How great would you feel about owning AirBnBs right now?   Short-term rentals like AirBnBs are not as recession-resistant as long-term rentals.   Just a couple, three months ago, it probably sounded different to you when I mentioned that short-term rentals aren’t very recession-resistant.    Because perhaps you were still feeling good about our 11-year-long economic expansion.   But those same words probably sound and feel different to you now that some think that a coronavirus-induced recession could even be imminent - though that remains to be seen.   Also, expect big hits to: chemicals, pharmaceuticals, and electronics.   Apple Corporation is so dependent on Chinese manufacturing for their iPhone. That’s the bad news.   Now, let’s talk about the good news.   Mortgage interest rates have hit all-time lows - yes, lower than their lows that they hit in 2012, shortly after coming off of the Great Recession.   All-time lows - as long as Freddie Mac has been tracking them - which is since 1971. They’ve never been lower than they are now.    Today, you can get a rate in the low 3s for primary residences, I’ve even heard of a few people closing 30-year fixed amortizing loans for less than 3%. Just astoundingly good.   And of course, investor loans are often about ¾% higher than those.   The Fed has been pumping tens of billions, even hundreds of billions into the system lately … for bank liquidity.   The Fed's emergency interest rate cut of 0.5% two weeks ago is first time we've seen such a move since 2008.    That 2008 cut was in the wake of The Great Recession - that was the Lehman Brothers emergency one-half-of-one-percent cut.   Just a quick economics primer if you’re a new listener - lower interest rates for loans stoke the economy because they make you more willing to borrow & spend.   Interest rate cuts help the investor class like you, and not poor people. That’s just the truth behind who cuts actually help. It’s you!   It helps the Get Rich Education listener - you again - even more because we’re such strong proponents of responsible and sensible borrowing here.   Now, note that lower rates don’t help contain the diseas. If your grandparent gets sick, Jerome Powell’s decisions aren’t going to help that.   Right, how low would rates have to be to get you to travel to China or Italy tomorrow?   By the way, after the rate cut, President Trump was not satisfied with the amount of easing and cutting.   “More easing and cutting!” is what he tweeted following the central bank’s announcement.   But realize, of course, that long-term mortgage rates don’t move on that Fed Funds rate. The Fed controls the short-term rate - though there’s generally still a correlation there.    Long-term mortgage rates - like the ones that you really care about for real estate - they move with bond yields.   Now, bonds are like the boring can of beans or soup in the finance world - they’re safe and they’re stable.   Vigorous bond-buying makes bond prices go up and makes bond yields go down.   So this strong bond-buying … this safe have ... has dropped the 10-Year Treasury Note yield below 1% for the first time ever … and it’s fallen substantially below 1% in just a fantastic fall off the table.   OK, so they’re below 1% - and that’s a rate that was unthinkable just a few months ago.    Do you know what the average spread is between this bond yield and the 30-year mortgage rate?   On average, mortgage interest rates hover 1.8% above this rate, so you can see how low we could be going.   I think that the historic spread will widen, but despite the fact that we now have record - I mean all-time record low mortgage rates, there’s a good chance that they’ll go a little lower yet.   This is great for your new real estate buys. Refinance activity is surging right now.   But back to short-term rates that the Fed influences - more cuts there seem imminent too.   The next one could happen at the Fed's regularly scheduled meeting, which happens tomorrow and the next day.   So you’ll hear an announcement from The Fed this Wednesday about their rate cut decision.   The Fed loaded up with dry powder in 2018 when they raised rates, so that they can lower them at a time like this.   Every time they cut the rate like this, it punishes savers and rewards borrowers.   No one knows if rates will go negative - and only a few places in the world have those right now: places like Japan, Denmark, and Switzerland. We’ve never had them in America.   U.S. stock market investors are getting killed with all this uncertainty. Indices are whipsawing with volatility.   Fear pushes stocks around, but not RE. The U.S. stock market dropped 3% in just minutes when a report came out that in CA, a large number of people were exposed to coronavirus, but weren’t.    Last week was the first time that major stock indices dipped into bear market territory. That’s defined as a 20% loss from a recent high.   There was one recent trading day - just one day - where the S&P dropped 7%, triggering a circuit breaker, which paused trading for everyone for 15 minutes.  Yeah, now we’re talking about all these automatic fail-safes. When the stock market loses so much, so soon, there’s a pause in trading. By the way, the way it works is that if the S&P had declined 13% in a day, trading would’ve paused another 15 minutes.  20% in a day, and everyone would have gone home for the day. That’s how it works. Yeah, they put those circuit breakers in place after 1987’s Black Monday, when the market fell between 22 and 23%.  Stock drops are always sickening,l and if you’re within 5 years of retirement, stock drops are really scary. I’ve told you before that I haven’t owned any stock, mutual fund, or ETF since 2014 and that’s still true today. Being in something stable like real estate has rarely felt as good as it has lately.   And you know something, “volatility” is a funny word.    It seems like “volatility” used to mean something that changes rapidly, and anymore, it’s morphed into something that only means a change for the worse.   Warren Buffett says, "The stock market is a device for transferring money from the impatient to the patient."    I believe that. I’d even say that - not just the stock market - but just that, “MARKETS OVERALL are devices for transferring money from the impatient to the patient.”    Real estate investors like us are more patient. There’s no flash-selling in real estate. It might take you 30, 60 days or more to sell a property … or to buy a property.   I’d expect to see a stronger U.S. dollar because the world views it as a safe haven asset.    I expect this to be a nice tailwind for real estate too, because the world views U.S. real estate as a safe haven asset in times of uncertainty.   Gold should be strong with coronavirus concerns. That’s easy to say, since gold is the classic safe haven asset.   But remember that gold might not APPEAR stronger to Americans if the dollar strengthens.    That’s how it works. Because if gold goes up 10% and the dollar also gets 10% stronger, well then it takes just as many dollars to buy the gold.   The dollar-denominated gold price would look the same then.   I’ve read that a number of experts predict silver prices to rise on coronavirus concerns, but then I don’t see any sound rationale for them thinking this.    I disagree. I would NOT expect silver to rise.   That’s because silver has more industrial use than gold and more industrial slowdown is expected.   Let's talk more about your income properties in this coronavirus environment.   Though I'm speculating now, what if your tenant is required to self-quarantine at home and they lose their income?   This is not far-fetched.   Washington state officials were really some of the first in the U.S. to recommend that workers stay at home when they suggested that Seattle-area residents work from home.   More & more people can work from home today than anytime in modern history.    But when we’re talking about your tenants, it's unlikely that all of your tenants will lose substantial income.   Now, there are some positions where people can’t work from home so well, like mechanics, janitors, chefs and wait staff, sure. Let’s consider that ...    The current unemployment rate is 3.5%.    I’m really speculating here, but if 1 in 10 of your tenants is both laid off & without income, that’s a 10% increase in unemployment. That would be huge.   That would be like the unemployment rate going from 3.5% all the way up to 13.5% - which seems unfathomable!   And yes, realize that if 1 in 10 people were laid off it wouldn’t exactly make the 3.5% unemployment rate shoot up to 13.5%. It doesn’t exactly work that way with how it’s calculated.    But, I think you get my point.   If 1 in 10 of your tenants were both laid off and without employment, that would be massive. So keep that in perspective. Even 1 in 10 would be a lot.   Last week, Trump floated the idea of a payroll tax cut, which I don’t think would do much of anything to help - and also, extending paid leave which seems more helpful.   Companies, especially those in the service sector, are under pressure to provide paid sick leave to workers who may not be in a financial position to take time off.    Wal-Mart and McDonald’s put in safeguards for their employees.   Congress might step in. A bill has been introduced that would require companies of all sizes to provide paid sick leave.   Could your overall rental income go down? Maybe, though you have to speculate quite a bit to even think that 1 in 10 would go without an income. So that’s a maybe.   But does your mortgage interest rate go down? Definitely. It already has.   What about you?   If you lose your job, you need multiple income streams ... from places like your rentals.   And if 9 out of 10 … or 10 out of 10 of your tenants still have jobs, you probably still have that income stream because you set up your life for multiple income streams if you’ve been listening to this show & acting.   What about you - what about your job? Well ...   The lower your financial freedom, the higher the risk.   The more income streams you’ve built, the better off you are.   What about your job? The lower your financial freedom, the higher the risk.   Another benefit of a paid sick leave movement gaining momentum, is that “When people gain access to paid sick leave, the spread of the flu decreases.”    Because they’re more likely to stay home then. So that makes paid sick leave seem like more of reality.   It’s important in this situation that when you have people who have symptoms and don’t feel well, that they do not go to work and spread diseases to slow the infection rate and buy time for public health officials to develop a vaccine.   Let’s look at oil prices - because that’s a substantial input to inflation and oil is a real proxy for what’s going on in the economy. Oil prices have crumbled faster than a Nature Valley Granola bar. And that’s even before a coronavirus-induced slowdown.  What’s happened, is that with President Trump in the White House and the Republican Party controlling the Senate, environmental activists have shifted their focus from pressuring the government to pressuring the private sector instead.  Since JPMorgan is such a big financier of the fossil fuel industry, activists have really turned up the heat on them and other big banks to stop financing oil projects. That’s significant - on top of a slowdown in the economy - if fewer goods need to be produced and shipped, it uses less energy and then there’s less demand for oil. Low oil prices are generally good for consumers but bad for producer countries.    In the U.S., low oil prices are not good for real estate in areas like west Texas, parts of Louisiana, and Alaska.   But, of course, there’s the flip side of all this. At some point, low stock and oil prices mean that bargain hunters come in to float the market again at some point.   In fact, billionaire investor Sam Zell recently made remarks that oil looks like a “buy low” opportunity. So let’s look at the bottom line - real estate is still quite well-positioned as long as you’re in residential, long-term rentals that you bought for cash flow. Elsewhere: Bonds win, gold wins, the US dollar wins, many business sectors - like the ones I mentioned - lose, stocks lose, oil loses, and silver loses.   Of course, let me qualify all that by telling you that that’s my outlook and that we don’t have any recent precedent for anything else like the coronavirus. No one REALLY knows. That’s my take. --------   If you happen to be a new listener to the show, you may not know much about me. I’ve authored many written articles for both Forbes and the Rich Dad Advisors.   Business Insider recently wrote two stories about me and Get Rich Education - and how I’ve helped everyday people create financial freedom through real estate investing.    That’s what I do here!   I’m a current member of the Forbes Real Estate Council.    But maybe the more important things I can tell you are that I’ve been the host of this show every week - and I mean EVERY week continuously since 2014 - you can count on me to keep showing up here.   I own three real estate trademarks. In 2017, I authored an international best-selling book on how real estate makes ordinary people wealthy.   And perhaps the most important thing I can tell you is that I invest right alongside you, from the exact same providers that we talk about here.   Though I travel pretty well, I’ve lived my entire life in the United States, dividing this life of mine between two states - Pennsylvania and Alaska.   I have spent the last 2-and-a-half weeks visiting four countries - the United Arab Emirates, Oman, India, and Sri Lanka. Though I’m a real estate guy, I have a degree in geography so I like to travel.   One of the coolest things I did is sandboarding on a sand dune in the Arabian Desert there in the United Arab Emirates.  I couldn't find another interested person, so I did that activity all by myself. Going high in the world's tallest building, the Burj Khalifa in Dubai, was a “must” while we were there. Muscat, Oman has some surprisingly beautiful sights, and buildings, and mosques that we toured. Really clean-looking there in the nation of Oman. Immersing myself in Indian culture is something that was really novel to me - the food, the way that - the women especially in some of these outlying provinces like Goa and Kerala, India - the way the women dress in such colorful outfits ... just if they’re walking to the market to buy some guava. Such an exotic feeling there. The coolest thing that I did is visiting the world's largest slum. It’s called Dharavi and it’s in Mumbai, India. It's just sooo different from my world.  There are actually bustling little businesses inside the slums there - from plastic recycling to pottery. And the Indian people were so welcoming - even in the slums - which was just amazing to me. As I like to say, seeing poverty enriched me.  :o) I’ve got more on coronavirus and your money straight ahead. A fair bit of what I’ve discussed here about coronavirus and your money and your real estate, is material that I sent in our wealth-building Get Rich Education newsletter about 12 days ago. The newsletter is a nice, written supplement to the podcast. Of course, you can unsubscribe at any time - but very few do. My wealth-building newsletter is something that you can subscribe to … for free … at GetRichEducation.com   You’ll be glad you did. You’re listening to Get Rich Education. _____________________________________   Welcome back to Get Rich Education. I’m your host, Keith Weinhold.   It’s unknown whether coronavirus will tilt the economy into a recession or not. It’s too soon to know. I’ll keep you updated on that here, of course.   For you, I think it helps to listen to a perspective that’s invested through a recession before.   I’ve been investing directly in real estate since 2002 - which was before the Great Recession.   I made a major income property purchase in 2007 - which was just within that recession (in fact, I mentioned that four-plex purchase last week on the show).   And I kept buying in 2010, as the recession wound down - and in 2012.   Well, what’s the common thread there? It’s that I continued to prosper because I bought for cash flow first.   It’s that I bought in multiple geographic markets for diversification - a recession-resilient strategy.   Residential rentals that were leased to long-term tenants.   People need a place to live. And as long as they're alive, a virus is not going to change that.   But see, a virus might mean people stop using vacation rentals and stop taking business trips and stop going to the mall and stop going to the office to work.   We’re talking about HOMES. Well, we could soon have more people working from … home.    Not office, not retail, not short-term rentals. They all look vulnerable now.   And by the way, that doesn’t mean I’m a permabear on those asset types. There’s always opportunity. But recession-resistence just isn’t one of their qualities.   I’m not saying short-term rentals never make an ounce of sense or anything like that.   Some companies are basically using the coronavirus as an experiment for that moment when “working remotely could broadly replace working in-person.”   Some people think that time is coming.   This can ACCELERATE THE - you’re seeing the acronym “WFM” around a lot more now -    the “work from home” movement. As people get more used to using workflow software and using platforms like Slack or Trello from home because they HAVE to, you know, when coronavirus passes - and it will - some might ask, now why return to an office all?   With each passing day, the camp of people believing that this is all fear-mongering loses troops.   We’ll see if the peak for coronavirus will be that 1-3 months from now like some experts predict. That’s the latest I’ve heard from credible sources. But again, we really don’t know.   That’s why I like to focus on things that we do know. So let’s focus on what we do know now:   The coronavirus threat will pass sometime. We just don’t know when. But it will pass.   A second thing we know is that people will continue to need a home - a place to live.   And thirdly, mortgage interest rates have hit their lowest level in American history.   So with those being the things that we DO know - this can be QUITE an opportunity to not only lock up investment property buys at historically low rates, but potentially, do that cash-out refinance of your existing home if you think that that’s in your best interest.   Procrastinators often aren’t rewarded. But, hey, maybe you are this time with rates being this low - or maybe you really weren’t because you had dead equity accumulated in one place for too long.   With borrowing rates underneath the basement, a lot of homeowners are racing to lock in cheaper loans.  I think we could see low to mid 3% rates on investment properties, and below 3% on primary residences. Mortgage refinancing applications have more than doubled in volume from the same time last year - that’s according to the Mortgage Bankers Association. And industry records are being shattered. Bloomberg reported that :  The country’s No. 1 mortgage lender, Quicken Loans, recently had its busiest day for mortgage applications in its 35-year history. United Wholesale Mortgage approved a single-day record of $2.5 billion in loans.  These stories are all over the place. The thing is, to process this flood of applications you’re going to need a lot of people. So the mortgage industry is on a hiring spree to take advantage of the gold rush. Our preferred mortgage provider is doing a lot of volume now as well - RidgeLendingGroup.com - that’s R-I-D-G-E. Just calculate your ROI just from principal reduction alone at these low rates. It’s pretty remarkable.  I think that the thing that you need to remember is … that long-term thinking. "Investing should not be about a MOMENT; it should be about a PROCESS OVER TIME.” Some of the classic problems with GETTING STARTED in real estate are ones that I’ve helped solve for you here.   I think that Problem 1 for people is that they feel like it costs a small fortune to GET started.    Problem 2 is FINDING the property. Often times, it’s because properties in your area don’t make sense with your 20% down payment and 80% loan.   I’ve really helped solve both of those problems.    By selecting investor-advantaged markets, with down payment & closing costs you can get started with as low as … about $18K - and they’re in areas where the numbers make sense … all at the website … GREturnkey.com   In fact, at the top of the page there, there’s that 8-step flowchart where I walk you through the process.   You start by getting pre-approved for a mortgage - I even suggest where - and then reading an investor due diligence report …   … all the way through to viewing properties, making an offer, getting your third-party inspection, appraisal, signing your Management Agreement, Closing on the Property … and then the really good part - years of owning and collecting the rent.    It’s rarely been easier - though the process still takes time & you need to supply your mortgage loan underwriter with plenty of documentation.   That’s all outlined at the same place where I buy my property: GREturnkey.com   What about some current highlights over there?   Well, it’s a great time to invest in Florida for a lot of reasons - you’ll find providers in Tampa, Orlando, and Jacksonville.   Our Orlando provider was recently added - they’re now - and they have NEW CONSTRUCTION - yes, newly-built, never-before occupied - single-family homes and duplexes … and they’re in locations from the Space Coast to The Villages, through Orlando, and nearly out to Tampa.    We’ve got another new provider on the page if you’re looking for more cash flow and less appreciation than what you’d typically get on new construction, and that is in … Iowa.   Yeah, I’m proud to introduce the Des Moines, Iowa market to you today.    It’s a model of midwestern stability and Des Moines has an MSA population of 600 to 700,000 people.   Des Moines has seen an average 3.6% appreciation over the last twenty years. I think of it as a cash flow market.   A lot of times, you might be buying for, say a 4 or 6 or 8 or 10% cash-on-cash return today.    If you have a little more patience and you want to potentially double your CCR, then, rather than the turnkey model - where you buy a property that’s already renovated - you might prefer the BRRRR model.   That stands for Buy – Renovate – Rent – Refinance – and Recycle Model - recycling your money to re-use right away.    That BRRRR model is suited to Baltimore, Maryland - within commuter distance to Washington, D.C. at just a fraction of the price.   All those markets - including the new turnkey markets with inventory TODAY in Orlando and Des Moines, plus the Baltimore BRRRR market, plus that 8-step flowchart that helps serve as a roadmap for you are all in one convenient place - all on one page - at GREturnkey.com   Market uncertainty is a short-term phenomena.   But when you lock up these lowest mortgage interest rates in American history - they can last you 30 years.   When the dust settles from any current news, you know what, you’ve still going to have your mortgage rate.   Stay safe. Enjoy these historically low mortgage interest rates … I sure am. Take action at GREturnkey.com   I’m Keith Weinhold and I’ll be back next week to help you build your wealth. Don’t quit your daydream!  

Today we’re talking detailed strategy about some lesser-known retirement account vehicles. The HSA is rarely talked about in real estate circles, as are the mega backdoor roth conversion and other strategies we’re discussing. Chris Tanner from the New Direction Trust Company joins us to discuss all of the above and more!wGet in touch:www.ndtco.com ctanner@ndtco.comOther Similar Episodes:Network like a pro with Adam BeckstedtTax Strategies for Real Estate Investors with Ted LanzaroGuest Bio:Chris Tanner is currently a Business Development Manager at New Direction Trust Company, a self-directed IRA custodian. He also founded and ran Diverse Retirement Solutions from May 2013 until July 2018. Diverse Retirement Solutions offered solo 401K plans, and safe-harbor 401K plans. He has personally self-directed my retirement funds for 13 years. He utilizes both a self-directed Roth IRA and solo 401K to invest in real estate, notes, private equity, and tax liens. He’s had amazing success and opportunity as a result of self-directed investing, and he is passionate about sharing his knowledge.

You’ll struggle unnecessarily in life if you “maximize” conventional retirement plans. How can this be? Historically, rather than deferring your income into the future with a 401(k), 403(b), 457 Plan, TSP, IRA … … you could invest in a real, cash-flowing asset that improves your life BOTH now and later. I make a case that a “dollar per dollar” employer match in your 401(k) could be worth it. But only up to that level. Today’s guest, Daniel Ameduri, author of “Don’t Save For Retirement”, discusses this with me. Future federal income tax rates will likely be higher. That’s one risk of deferring your tax. The biggest risk of conventional retirement saving is that you sell your todays for tomorrows. Would deferring your compensation ever “pay off” for you? Children & money tips are also discussed. The top role of most financial advisors? To keep the naive person from losing all of their money. In retirement, many retirees pay their financial advisors 25% to 50% of what the retiree withdraws! I explain. Summary: Don’t invest your income for savings; invest your income for more durable income. __________________ Resources mentioned: Future Money Trends: www.FutureMoneyTrends.com/save Mortgage Loans: RidgeLendingGroup.com QRPs: text “QRP” in ALL CAPS to 72000 or: TotalControlFinancial.com By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. New Construction Turnkey Property: NewConstructionTurnkey.com Find Properties: GREturnkey.com Best Financial Education: GetRichEducation.com Follow us on Instagram: @getricheducation  

The next recession, and your next 3-10 economic years are predicted by our guest today. He is Brian Beaulieu, CEO of America’s oldest privately-held continuously operated economic research and consulting firm, ITR Economics.   Prediction: Interest rates should stay low through 2023. By 2025, they could rise 3% to 3.5%. Inflation should increase in the second half of the 2020s decade. Why? De-globalization. We discuss how long this longest-ever economic expansion will last. Declinism is people’s predisposition to view the past favorably and fear the future. Brian tells us why the economy is likely to accelerate before it falls into decline. Millennials and Gen Zers are large generations. As they age, their affluence increases. Brian tells us that the widening gap between stock valuation and corporate profitability is concerning. I tell you the difference between fiscal policy and monetary policy, and why the 30-Year Fixed Rate Mortgage might be the most undervalued “asset” today. Of course, your economic future is based more on your individual decisions than the broader economy. If you want an economic forecast for your business or personal investing, visit: ITReconomics.com __________________ Resources mentioned: ITR Economics: Home Page Book: Prosperity In The Age Of Decline Mortgage Loans: RidgeLendingGroup.com QRPs: text “QRP” in ALL CAPS to 72000 or: TotalControlFinancial.com By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. New Construction Turnkey Property: NewConstructionTurnkey.com Find Properties: GREturnkey.com Best Financial Education: GetRichEducation.com Follow us on Instagram: @getricheducation

One of America’s most underappreciated markets is right in the heart of cash flow country. Rent-to-price ratios are often 1%.  Americans are moving from high-cost, high-tax places to low-cost, low-tax places. Look, the biggest mistake most real estate investors make is emphasizing “the deal” rather than “the market”.  You are making an investment into an area’s underlying economy before the property.  Follow the data, not the money. I discuss why health care employment is an important gauge of economic vibrancy. Learn why sellers prefer investor-buyers like you, not owner-occupant buyers.  To buy cash-flowing properties in this underappreciated, “secret” market, start here at: www.GetRichEducation.com/Dayton __________________ Resources mentioned: Dayton Cash Flow Properties: GetRichEducation.com/Dayton Mortgage Loans: RidgeLendingGroup.com QRPs: text “QRP” in ALL CAPS to 72000 or: TotalControlFinancial.com By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. New Construction Turnkey Property: NewConstructionTurnkey.com Find Properties: GREturnkey.com Best Financial Education: GetRichEducation.com Follow us on Instagram: @getricheducation

Before you buy a property, I discuss something crucial that you’re probably missing. Five of your listener questions are answered.  (The entire episode’s lyrics are in the Show Notes below!) 1 - How should I reward my child for their good school report card? 2 - How reliable is a real estate income stream? 3 - Are we in a housing bubble? 4 - Should you pay off $200K in student loans or invest? 5 - Should I get an inspection for a new construction property? “Packaged commodities investing” is a way to think of real estate. You have a buying opportunity for income property in Florida, Alabama, Indiana, Maryland, Tennessee, Arkansas and more all at www.GREturnkey.com.   __________________ Resources mentioned: Inflation Lesson: Sears & Roebuck DIY Homes Mortgage Loans: RidgeLendingGroup.com QRPs: text “QRP” in ALL CAPS to 72000 or: TotalControlFinancial.com By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. New Construction Turnkey Property: NewConstructionTurnkey.com Find Properties: GREturnkey.com Best Financial Education: GetRichEducation.com Follow us on Instagram: @getricheducation   Welcome to Get Rich Education. I’m your host, Keith Weinhold - answering your listener questions today. How do you reward your child for a good school Report Card? What about the long-term DURABILITY of a real estate income stream?  Are we in a Housing Bubble? What should I do - pay off student loan debt - or invest? Should I get a Home Inspection? And what’s the one thing you should do before you buy ANY property that you’re probably not doing?  All today - and more … on Get Rich Education.  ___________________________ Welcome to GRE. I’m your host, Keith Weinhold. From Colombo, Sri Lanka to Columbia, South Carolina to Columbus, Ohio and across 188 nations worldwide.  This is Get Rich Education.  We’re having my favorite guest on the show today. That guest is you! Because I’m here with your listener questions today! The first one concerns a kid’s school report card and then the rest are about real estate investing.  Rebecca from Los Angeles, California asks, Keith: What reward should I give to my 11-year-old son, Mason, for having a good report card at school - all As and Bs? I love your show, keep up the great work. Well, thanks, Rebecca. I love this question. Even though we’re largely a real estate investing show, I think there can be so many lessons about life for your 11-year-old son, Mason here. The reward you can give them for their good report card is cash. Tell Mason that he’s getting $100 - or maybe it’s $40. But in any case, let’s just stick with the $100 example. Divide it in half.  Tell him that he’s getting $50 in cash. And tell Mason that, as a bonus for later, another $50 is going to be invested for him. Over time, Mason will probably see that the invested $50 grew and the $50 that he spent on video games or whatever didn’t. But see, he still gets rewarded with “short-term” fun. That way, it’s not ALL delayed gratification. As you know, the abundance mentality isn’t about either / ors, it’s about “ands”.    This way, he can have his cake and eat it too. What good is cake if you can’t eat it?   Now, I didn’t say that he had to SPEND the $50 cash part of this. $50 gets invested - and you’ll have the fun of keeping Mason updated on his investment over time.    He can do whatever he wants with the $50 cash part. And over time, if he sees the invested portion gained value, he might choose to actually invest some or all of the $50 cash reward too.   But for now, let’s be realistic - he wants to spend his $50 cash on Minecraft or Fortnite or the latest release of Grand Theft Auto. A video game like that.   That’s fine. You need to let him be rewarded now - because that might incentivize more near-term good school performance - which is what you value seeing in Mason.   Thanks for the question, Rebecca.   Now, before I move onto the next question. There’s … I think … a real extrapolation here for you, the adult listener, with the way I recommended that Mason’s report card could be rewarded.   Really, there’s a real estate investing lesson there. Mason gets rewarded both now & later.   A employer-sponsored retirement plan punishes you now by reducing your salary and make you delay gratification.   Real estate investing reduces your salary now - in way - when you make your down payment. But it begins returning that to you in the form of cash flow now - and gives you the asset appreciation for later.   As you know, I’m not in love with the term “delayed gratification”. Now, I do think there’s a little something to be said for it.   When I made my first-ever property that four-plex building where I lived in one unit and rented out the other three, I could have bought a nicer SFH. So I delayed some gratification there.   I see some investors buy-in to “delayed gratification” so much that I wonder how long their postponing happiness and if they’ll EVER find it.   Sometimes, people get shocking reminders of this, but they soon forget it. I know this hits close to home for an Angelino like you, but you think about 41-year-old Kobe Bryant and his daughter Gianna being taken away from the world a few weeks ago.   There are really all kinds of analogies for life here. Sometimes “later” becomes “never”.   Would you say that IF 11-year-old Mason spent half his report card reward - the cash half - if he spent it all on video games, would you say that he “blew that money” - that he “wasted that money”. I don’t know.   What about you - the adult listener. Sometimes I hear people say that you should save all your moeny and not “blow it on a vacation” - as if you squandered money if you went on a vacation.   I don’t know that that’s necessary true.   Look, what is money for? What if you’ve wanted to travel to tour the beautiful Croatian coast or see glaciers in Greenland.   How can a person say that you’re necessarily “blowing your money” if you go out and to that.   You’re getting out and seeing the very world that you live in. You’re living the life you’ve dreamed of. What would you want to do any less?   Most people just don’t have a vehicle - they don’t know about a durable vehicle like real estate that pays them so many ways - both today & tomorrow.   See, a lot of investment promoters WANT you to delay gratification.    They oversell that stance. They’re selfish. They want you to invest your money with them so they get the sale first and that they get the commission first and that they get the referral fee first.   They’ve convinced you that paying yourself first … means investing with them first … so that you can accumulate dollars in an account with your name on it so that you can only then consume it in years or decades.   Use your dollars in years or decades? That’s not paying yourself first. How did that get to be paying yourself first? It’s because that promoter of salesperson is only thinking of themselves first.   There’s something to be said for delayed gratification, yes.   But delayed gratification should not be a permanent condition.   When are you really going to start living the life you’ve always wanted? The year 2052? Or do you have a plan to compound your cash flows so that you can do that in three years.   You know that that’s the big reason - the #1 reason for me, in fact - that I don’t care for conventional retirement plans.    They only invest for later instead of both now & later like cash-flowing real assets do.   Now, I don’t think you’re going to find it self-redeeming if you go broke trying to LOOK rich with ostentatious displays and classic CAR status symbols like the Lambo - unless that’s sustainable for you. Then … that’s great.   So be gratified both now & later. Give Mason cash - half now, half turned into an investment that you make for him.   And to 11-year-old Mason, if you listen to this now, I know you might want all $100 bucks right now. Most 11-year-olds would.   If you listen to this in 2030 when you’re age 21, you still might not understand. If you listen to this in 2040 when you’re age 31, it’ll probably all make sense.   Thanks for the question about your son Mason, Rebecca.   ------------------   The next question comes from Gerald in - Oxnard, CA - that’s just up The 405 and 101 - west from L.A. where our last listener inquiry was from.   I went through Oxnard on my last drive from L.A. to Santa Barbara.   Gerald writes. “Keith, thanks for your show. Nobody anywhere makes real estate investing more clear. It’s my favorite 40 minutes of the week.”    Now, see, with a comment like this, it really increases your chances that I’m going to read your question on-air here, Gerald from Calabasas.  :o)   He asks, you discuss the importance of multiple income streams.  How PROVEN do you think that real estate income streams are long-term. How do I know it will still perform as an asset class for me in 30 years? Thanks for the question, Gerald. I know I’ve discussed elsewhere that people are going to keep needing a place to live, like they have for centuries or millennia now - and that inflation is the long-term trend and your long-term friend for a leveraged real estate investor.  It’s also what makes your cash flow rise faster than inflation since rents move up with inflation but your principal & interest cost doesn’t - it stays fixed. So, I’m going to take this in a different direction, Gerald. You’re asking about the durability of real estate an asset class and I think it’s a good question.  I recently had another listener write in to me about a concept that … I’ve thought about it before but I never heard it articulated in such an elegant way. And, I’m sorry that I don’t remember this listener’s name. But she referred to real estate investing as “Packaged commodities investing”. I love the … ingenious thought of packaged commodities investing. When you buy a rental home, yes, you’re buying the cost of the utility and the construction labor.  But think about those materials in the home, those commodities - you now own brick, lumber, glass, copper wire, styrofoam insulation, granite, ceramic, paint, oil in the roof shingles, masonry, concrete, rebar, you own an HVAC system - every one of these individual commodity components are hedges against inflation.  Gerald, a while ago, Reddit had a trending article over these Do-It-Yourself Houses that Sears used to sell over a hundred years ago. Look, this is fascinating - I’ve got this one-page ad in front of me - it looks like a newspaper ad. It’s for Sears Roebuck and company from the year 1913.  This ad - that’s more than 100 years old - is interesting to any investor or economist - or marketer even.  This ad is for - like a kit you can buy where you help construct the home. Let me read it to you. It says, “By allowing a fair price for labor, cement, brick and plaster, which we, Sears, do not furnish, this house can be built for about $1,530 - including all material and labor! Now, this looks like a small, single family home plan that Sears was offering you here, back in 1913. I can’t quickly find the square footage on it - say it was 1,500 sf. So, you’re buying this house over a hundred years ago, for say a dollar per square foot then. They show you the flooring layout plan. This is a livable-looking place, complete with a nice, wide porch. It’s not a tiny home. Ha - this is so quaint! The Sears ad goes onto say, for $872 (which is more than half of your all-in cost of $1,500 that I just mentioned) - we will furnish ALL of the material to build this 6-Room bungalow … … consisting of mill work, siding, flooring, ceiling, finishing lumber, building paper, pipe, gutter, sash weights, hardware, painting material, lumber, lath, and shingles. NO EXTRAS - is in all caps. We guarantee enough material at this $872 price to build this house according to our plans. So that was $872 for the material - and then, remember, your all-in price with labor and everything else is the $1,530.  This home, that’s giving us some historical commodity and real estate PRICING perspective here - doesn’t look like a piece of junk. Reading on - the large porch is sheltered by the projection of the upper story and supported with massive built-up square columns.  A unique triple-window in the attic and fancy leaded art glass windows add much to this pleasing design. Ha! That’s all I’ll read from the ad.  So … I think this is representative of this concept of “packaged commodities investing” that a listener introduced me to.  It tells us a lot about monetary inflation, and at the same time - it speaks to the durability of residential real estate as an investment.   This IS less sexy than the “five ways you’re paid” stuff here. We’re just looking at an element of durability here. When you have direct ownership of rental property, you simultaneously own all of these vital commodities. You own a basket of products. You’ll see this Sears ad linked in the Show Notes. It’s fascinating to see. And a lot of home construction here in the 2020s decade is still done largely the same way that it was decades ago. 3-D printed homes are not being adopted into the mainstream. Now, if they do, that could lower labor costs.  You’d still need to add a lot of things to make a 3-D printed residence livable - components and penetrations and mechanicals and the  - all those commodities we mentioned, plus, you’ve got the cost of the land.  Decently-located land, is a commodity in itself - and IT’S of a limited supply. By the way, this is a learning show, and the first definition of the word “commodity” when I Google it, is: “A raw material or primary agricultural product that can be bought and sold, such as copper or coffee.” That definition is from Oxford. Ha - they even have copper as the first example - and you expect to own copper with each home that you buy. I think yet another angle to your question, Gerald, about the durability of where your income stream comes from - is that we focus on RESIDENTIAL properties here. As the office and retail real estate sectors KEEP feeling pain - residential has become even more important at the same time - and you already know all the reasons -  more people can work from home, order products from home, and do more from home than they ever have before.  AirBnB properties might work in the short run, but we haven’t yet seen what happens to them in a recession yet - and as we know, the short-term rental market cater to business travelers and vacationers - and durability is what you need your income stream to have. That’s why, for durability reasons, I favor long-term residential investing above all else … and love to consider the elegance of this “packaged commodities investing”.  Thanks for the great question, Gerald from Oxnard, CA. ---------- The next question comes from Andrew in Ridgefield, Connecticut.   Keith,   I have been listening to your podcast for a while. Your mindset resonates with mine.   I am a small animal Veterinarian, I own - and run - my own small animal hospital.   On the investment side...….I have a balanced Wall street portfolio (Stock, Bond, Mutual Funds). On the Real estate side I have a $280 cash flowing SFR, and am involved in some multifamily Syndications.   I wrestle with Buying more SFR properties vs. more syndications.    I feel that since money is so cheap in today's economic climate there is not much room for appreciation when buying RE. Should I sit on the sidelines and wait? (wait for Blood in the Streets?)   I like the Tampa area...but go back and forth with my thought process.   I look forward to hearing from you.   Signed, Andrew (his last name), DVM - DVM is Doctor Of Veterinary Medicine, BTW   Yeah, it is interesting that I’ve noticed a good deal of doctors & dentists listen to Get Rich Education. But I doubt that it’s #1.   Anecdotally, I’ve noticed that for some reason, we seem to have a really high proportion of listeners that are in LAW enforcement - like police officers & such.   Thanks for the question, Andrew, veterinarian from Connecticut.   On the first part of your question, buying more SFR vs. real estate syndications - that has a lot to do with both your risk tolerance and your desire for passivity.   Direct investing, like turnkey investing, does require a little remote administration - even when you’re not the property manager, but you’ve typically got higher returns and you’ve got control - versus a syndication.   In many cases, direct investing and that great control actually means you’re more liquid with your funds.    You could sell in a few months if you had to … and with syndications, if you’re in Year 2 of an apartment syndication where it’s 7 years until that deal matures … then good luck getting your money out. You can’t access it.   So, those are some more of the trade-offs between direct investing & syndications.   Ah, I know you wrote that money is still cheap - meaning that interest rates are low and that you think that might be an indicator that appreciation has run its course.   Well, I’m still buying direct property, where I own the deed.    See, interest rates have basically been low for over a decade and we’ve had appreciation the entire time.   Let’s look more recently. In 2018, interest rates really began a march higher and there were some people predicting that it would make housing prices go down. It didn’t. In 2018, national appreciation rates were about 7%.   In 2019, mortgage interest rates went lower and appreciation went lower, down to about a 5% annual gain.    Now, yes, there’s a lag effect between mortgage interest rates and pricing too.    But mortgage interest rates are one of - at least 10 different macro factors that effect the price of housing, so one doesn’t lead to the others.   There might be more substantial factors skewing the numbers than interest rates affect housing prices.   Housing prices can be more affected by things like chronically low supply like we’ve got today, wage growth, job growth, in-migration, birth rates, death rates - and did lending requirements get more stringer or more lax - did credit score requirements get more stringent or more lax and on and on.   But you do ask a good question, Andrew. Ah - if I didn’t think it were good, I wouldn’t be answering it here.   Now, I know that you didn’t bring up the word bubble.   But a few weeks ago, I described why I don’t think we’re in a real estate bubble. Prices are sustainable for a lot of reasons.   But on the flip side, I don’t see any scenario in which real estate, nationally, hits any high-flying annual appreciation rates of 10 or 12% anytime soon - like we saw back in 2005 either.   Low supply can only push prices so high. Affordability is the component that governs and tempers the upward price escalation.    Affordability is what’s moderating the rate of appreciation rate right now.   Of course, whenever we talk about the future, no one REALLY knows what’s going to happen. These are just my thoughts - and the basis and the reasoning for why I have them.   You mention that you like Tampa - I do too. I really like so much of Florida - of course, you have to get your submarket right.    And I need to say that’s generally Florida north of Miami - because the numbers don’t work so well in south Florida.  Around Miami, you just don’t get a higher rent income proportionally to the much higher purchase prices there.   Think about this! When you look at net migration by state for this past year, Texas was 2nd in the U.S., and they had a net in-migration of 190,000 people. Florida, even though they have a smaller population than Texas, is #1 with 322,000 people.  Yeah, net 322,000 moving into a smaller state - Florida. And 190,000 into a larger population state - Texas. Florida has rent-to-value ratios that are favorable. And as an investor, your property tax rate is substantially lower in Florida than it is in Texas too.   There are a lot of reasons to like Tampa and Florida. Of course, that’s why we had our real estate field trip there last October in Tampa … as well. Thanks for the question, Andrew! If you want to hear your voice on the show, ask your question at GetRichEducation.com/Contact I realized that on earlier listener question episodes, I had only left you with our mail address so that’s why I have mostly e-mail questions today and only one voicemail question. I’d really prefer to hear your voice on the show. So by visiting GetRichEducation.com/Contact, that way, you’ll have the option of either leaving a voicemail or an e-mail, whatever you prefer there. Two more listener questions today. What should you do first, pay off your student loan debt or invest … … and I need to tell you why you should always get a property inspection before you buy a property - and do one other crucial thing - before you buy property - that you may not have ever thought about before.  That’s next. You’re listening to Get Rich Education. ----------   Hey, you’re back inside Get Rich Education. I’m your host, Keith Weinhold, answering your listener questions today.   The next question comes from Dillon in Nebraska - I’m not sure which Nebraska place he’s from. Let’s play the audio: https://www.speakpipe.com/msg/p/120531/30/p15zsoamb252hyob35bvfc8d6uwrqv3ml1yh3h1suwgf6   Yeah, thanks, Dillon. And I do consider student loan debt as bad debt because YOU have to pay it back yourself …    … that is, you can’t directly outsource those payments to someone else, like tenants in a rental property where they pay all your mortgage loan interest, all your mortgage loan principal, and hopefully, another couple hundred dollars on top of that called cash flow.   Not to mention, Congress passed an act in 2005 which made student loans quite difficult to discharge in bankruptcy.   With your question, being basically, “Should I pay off $200K in student loan debt as quickly as possible before starting real estate investing?”   Well, the answer ... as it often is, is “It depends.” But I’ll tell ya what it depends on.    The short answer is - if your real estate cash-on-cash return could beat the interest rate on your student loan debt - only then would you invest in real estate and make the minimum student loan debt payment.   Now, that was really good insight on the inflation-hedging or even inflation-profiting that long-term debt can provide you. I can tell that you’re a careful listener to the show, Dillon.   Of course, that's just one tailwind. Just one consideration.   And the reason why inflation-profiting is lower in priority than your cash-on-cash return is that you need liquidity. You need cash to service your student loan debt.   I don’t know what your student loan debt INTEREST RATE is. But let’s just say you’re paying a 6% interest rate on that debt. Now, I understand that it’s really easy to look at all 5 ways that real estate pays you and think - aw, I can get 20, 30, 40, maybe even a 50% ROI when I buy right.  So I’m just gonna pay the minimum on the student loan debt and plow all the extra into real estate. I would say, not so fast. Even though that might work out for you, we need to be more conservative … … because real estate appreciation isn’t liquid, tenant-made loan amortization isn’t liquid, and neither are real estate’s tax benefits or the aforementioned inflation-profiting. So, to use the simplest example, if your rental gives you $100 of monthly cash flow, which is $1,200 annually - and you’ve got $20K of skin-in-the-game on your rental as down payment and closing costs. Well, that $1,200 annual cash flow divided by your $20K down is 6%. That’s your Cash-On-Cash Return portion and if you can get THAT at 6% or above, then reduce your student loan paydown dollar-for-dollar for every dollar that you put into real estate. That’s really the upshot here. Yes, there are some smaller things to consider. Last time I checked, student loan interest in the United States is a tax deduction up to $2,500 annually.  So, your 6% interest rate might effectively be 5, 5-and-a-half or whatever it is. Understand the risk. You don’t want to be left cash poor. Your TOTAL Rate Of Return on real estate will almost certainly beat your student loan interest rate. But that's not enough.  Let's be conservative. To summarize, because you service your loan debt with cash, not equity, the key question you must ask yourself is: "Am I confident that my cash-on-cash return from real estate will exceed the interest rate on the student loan debt?" If your answer to this key question is "yes" - invest in real estate and stretch out the student loan and only pay the minimum on the student loan.    Otherwise, you're walking away from an arbitrage opportunity.   If it's "no", retire the student loan debt balance sooner. Otherwise, then you're hemorrhaging cash.   What did I personally do? After college, I retired my student loan debt fairly promptly.    But this was before I knew about REI. I still thought budgets were good and that the best way to financial betterment was cutting expenses and all the wrong stuff.   That was an awesome question, Dillon in Nebraska. Because I know that so many people have that question - how do I best allocate a dollar toward debt retirement versus expanding my upside.   ----------   The next question is from Monique in Quebec City, Quebec. Monique says,   Keith, I love your show. I’ve listened to every new episode since 2018, and now I’m also going back and listening to them from the beginning. Thanks, Monique. I’m grateful for your listenership.    Monique goes on to say, “I’ve bought four cash-flowing properties from the providers at GREturnkey.com. (Good job there, Monique) They were all EXISTING construction properties.   Though I expect the cash flow to be less on my fifth one, because it’s going to be a brand new construction property.”   Is the HOME INSPECTION a required expense for me when the property is completely new?   Thanks for all your help. Signed, Monique.   Monique, the answer is “yes”, you should. Always have a pre-purchase inspection done, even for new construction property.   Sometimes people think of a NEW CONSTRUCTION property as “perfect”. Well, I don’t think of any property as “perfect”.   But an example of a mistake made in a new construction property is that, maybe the air conditioner is too small and doesn’t have the capacity to cool all, 1,800 sf of the home or whatever it is.   Maybe some new flooring wasn’t installed correctly and it’s showing signs of de-lamination.    An inspection provided by a local, independent, third-party inspector is a cheap insurance policy for you, the buyer and you need to factor it in as one of your closing and due diligence costs.   Now, an inspection on a SFR, is probably going to cost you somewhere in the neighborhood of $400 - of course that’ll vary based on the area.   You have the inspection performed shortly AFTER you & the provider agree on a purchase and sale contract.    The reason that you want to get the inspection scheduled shortly after you’re under contract is because sometimes it can take a while - weeks - for your provider’s contractor to fix the deficiencies that your inspector finds.   Now, how do you find an inspector for your property, anyway? There are a few ways of going about it. You can ask your provider to recommend one.    If you’re leery of that or think that your provider might be in “cahoots” somehow with the inspector, you can Google your own, or thirdly, get an opinion from friends or if you don’t have friends that have invested there before, then use an online real estate forum.   Seek an inspector that’s ASHI-certified. A-S-H-I stands for American Society Of Home Inspectors. Those certificants are educated, tested, verified, and certified.   The inspections that they do are really quite thorough. They go everywhere in the home you’re planning to purchase, even looking in the closets and pantries, making sure all the doors & windows open & close.   If there’s a crawl space, they’ll climb down into the crawl space looking for deficiencies, taking notes, and taking photos that they compile in a report and send to you.     Before you buy the property, the inspector might even go up on the roof - or at least zoom in and take some photos of the roof. And of course, they go all through the home and check everything in between.   They do the entire inspection same-day. It takes a couple of hours.   Some common findings that your property inspector might have are:   The outdoor rainwater downspout discharges water at the foundation. Add extensions. That’s a super cheap, easy fix for your seller to do for you.   The kitchen window doesn’t close all the way because it has a broken crank.   The exhaust fan in the bathroom doesn’t have any power and it’s not pulling any air.   The outdoor water spigot is missing its valve.   The backdoor is bent at the bottom.   A porch this high off the ground needs to have a railing added.   So, Monique, as you can see, some of these are deficiencies that could occur in a new construction home.   Now, let me touch on a couple of these. The backdoor is bent - that could be pretty minor. If you don’t think it’s aesthetically detracting and the door still closes - then maybe you do ask the provider to fix it - and maybe you don’t.    If I were you, I’d usually just ask.   But if there’s a minor dent in the door instead, and it functions well, then asking for something like replacing the entire door might make you appear unreasonable to deal with.    There’s some judgment there.   But if the backdoor won’t close, you’ve at least got to see that it closes and latches properly.   The last example that I mentioned - if the inspector cites a finding that a porch this high off the ground needs to have a railing for safety, you’ve got to be sure that’s done.   In fact, a reputable provider will be sure that’s done for you.   This is part of you being a good operator. Remember how I’ve discussed that having an LLC is only your fourth line of protection, at best.   Make sure any health or safety findings are addressed from the inspection. Do that good in the world.   If an accident ever did occur at the property - you can always point to the inspection that you had done - and it was an option that you paid for.    The inspection is an option.    So, these are all the findings that the inspector reports to you - and he’ll send you a report of a few dozen pages in a .pdf format.   Some things might be noted in the report, but the inspector won’t list them as deficiencies that NEED to be remedied - like small cracks in the sidewalk.   Often, in the report, the inspector makes a clear delineation as to when a condition is poor enough … such that it falls to a deficient level - and he puts them all in one punchlist at the end of the report.    That way, you’re not having to split hairs and do too much interpretation.   You look the report over, and then you ask the provider to fix them for you before you’ll close on the property.   The provider might take, say a week or so to have their contractor fix those punchlisted items.    When they’ve finished them, then you’re on your way to having your appraisal and moving closer to the closing table.   But, I’ve got to tell you something kind of disappointing here. I’ve been directly investing in real estate actively and continuously since 2002 - and I’ve got to tell you …   … many times, even when the contractor says that they’ve completed fixing everything - even when they send you pictures … something really wasn’t quite fixed right.   So what I suggest, is that - existing construction or new construction - when you hire your inspector, tell him right then & there, that you are also going to want a follow-up re-inspection that occurs after the initial inspection.   The purpose of a re-inspection is confirming that all of the deficienies noted in the original inspection were indeed done.    And by the way, there will ALWAYS be original inspection findings.    An inspector will always find at least one deficiency and I’ve dealt with properties from Pennsylvania to Florida to Alaska to Texas and in-between - and outside the U.S. too.    Inspectors always find stuff that’s wrong. Always. It’s like a universal law.   But, getting back to re-inspections. Upon scheduling your original home inspection, if you point out AT THAT TIME that you’ll also be getting a re-inspection - tell both the inspector & the seller this, I tend to think it helps keep parties on their toes and that they try harder to get the original inspection findings handled - the first time.   And look, re-inspections are super cheap. If a SFR ORIGINAL INSPECTION costs $400, a re-inspection is going to be less than $100.    I’ve even paid $50, $60 in some markets for the re-inspection. It’s hard to believe that you can even get a trained, qualified professional to make a field visit somewhere that inexpensively.      Now - and I have this happen too - what if after your RE-inspection - which would really be a second inspection, that the provider or their contractor STILL didn’t get things repaired properly?   Then the responsibility shifts to your seller - to schedule and pay for a second RE-inspection - which would be a THIRD inspection then - to prove that it’s right.    That’s correct, in every state and nation I’ve ever invested in, the seller-side pays for your second re-inspection … if it comes to that.   That’s fair. Because after the original inspection findings, your seller said they’d make the repairs.    If the re-inspection that you paid for to confirm that it was done, instead shows that it wasn’t done. Your seller had their chance and messed it up. That’s why it’s customary that they pay for the SECOND re-inspection.   So, Monique, to summarize for you here.  Always pay for a property inspection, even on new construction.   Expect there to be findings every time.   And my own personal experience shows that at the time that you book an inspection, it helps to indicate that you’ll be getting a RE-inspection too.   Now, getting a re-inspection makes so much more sense than getting a re-appraisal - if you get a low appraisal, which doesn’t happen often, maybe I’ll discuss that another day.   Re-appraisals are a waste of time … more than 95% of the time, they just come back with the same valuation you got the first time.   An appraisal protects the bank. An Inspection protects you - so be sure to have one done. Excellent question, Monique from Quebec City, Canada. Next week on the show, I’m going to discuss Real Estate’s Secret Market - a geography where the numbers really work for investors that might have been off your radar. After that, we’re going to talk with a prominent economist that’s never been on the show before that’s going to help you see your economic future over the next 1-3 years. We’ve hosted a lot of economists here on the show that give you those long-term investing insights like Richard Duncan, Harry Dent, Jim Rickards, Jim Rogers - and also,  though they might not be economists, Robert Kiyosaki and Chris Martenson are here with us to give us those types of insights. Then there’s “Yours Truly” - I’m your armchair economist without an economics degree.  But this new guest is the leader of the oldest continuously operating economics prediction company in the entire United States, so I’m excited to chat with him and bring you that show soon. As you know, nationally, housing inventory is scarce, especially with these types of single-family homes that make the best rentals. You can’t make any money from the property that you don’t own. So whether you prefer to call it “packaged commodities investing” or the “get paid up to 5 Ways” vehicle, next time you’re looking to connect with a provider at GREturnkey.com … As we spoke of Florida earlier, you’ll see that Jacksonville has brand new construction property, where you’re probably more of a fan of appreciation than cash flow on those.  Rents are $1,350 on a $180K purchase price. That’s a 0.75 rent-to-value ratio. Tampa has existing construction property where you have a 0.8 or .85 ratio and might get, say $150 of monthly cash flow.   Alabama has numbers that work - like rent-to-value ratios near a full 1% and really low property taxes in either Birmingham or Huntsville.   If you’re looking for low cost property - as low as $80K in decent neighborhoods that really cash flow well, Memphis and Little Rock could be the places for you.   The Indiana State side of Chicagoland is advantageous too.   All those places - Memphis, Little Rock, Chicagoland - you can get a full 1% RV ratio or even more than that sometimes.   If you’ve got more patience and want to benefit and capture some forced equity along with your cash flow, the BRRRR model in Baltimore could work best for you.   Check out all of those markets and more - at GREturnkey.com   Thanks! I’m grateful for all of your excellent listener questions today! I’m your host, Keith Weinhold. Don’t Quit Your Daydream!    -------------

Donald Trump’s re-election could end Fannie Mae and Freddie Mac conservatorship of mortgage loans. This could mean that fixed rate mortgage loans disappear!  It could also lead to higher mortgage interest rates and more changes. Ridge Lending Group President Caeli Ridge and I discuss why. We compare Fixed vs. Adjustable Rate Mortgages (ARMs).  Your personal DTI - debt-to-income ratio - is thoroughly discussed in qualifying for rental property loans. I made my last two mortgage loans personally at www.RidgeLendingGroup.com __________________ Resources mentioned: Mortgage Loans: RidgeLendingGroup.com QRPs: text “QRP” in ALL CAPS to 72000 or: TotalControlFinancial.com By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. New Construction Turnkey Property: NewConstructionTurnkey.com Find Properties: GREturnkey.com Best Financial Education: GetRichEducation.com Follow us on Instagram: @getricheducation

You only need to be 1% better ... to go from good to great. This is due to accumulative advantage, which is the engine that drives "The Pareto Principle" (80 / 20 rule).  Lessons from nature extrapolated to business and real estate investing provide cues on how you can grow your wealth faster. Damion Lupo tells us about important new changes that make the eQRP - Enhanced Qualified Retirement Plan - even more beneficial to you. To learn more, text “QRP” in ALL CAPS to “72000”.  With the eQRP, you pay no UBIT tax on leveraged real estate. Self-Directed IRAs sting you this way. eQRPs can provide tax credits of $15,000 for starting a plan, and a tax deduction on your income by paying your kids. Open your eQRP before you file your taxes, and you can make the benefits retroactive.   To learn more, text “QRP” in ALL CAPS to “72000”. __________________ Resources mentioned: Text “QRP” in ALL CAPS to 72000 or: TotalControlFinancial.com By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. Book: The Slight Edge by Jeff Olson Pareto Principle: Business Insider article Mortgage Loans: RidgeLendingGroup.com New Construction Turnkey Property: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation

Bernard Reisz CPA is the founder of 401KCheckBook.com which gives investors direct control of their tax-sheltered funds for real estate equity and debt opportunities using checkbook controlled IRAs, QRPs, Solo 401K(s) and Checkbook Life Insurance. He's also the founder of AgentFinancial.com which provides tax strategy, entity, and financial services to real estate professionals, including real estate agents, real estate investors and mortgage brokers. SHOW NOTES:[00:07:01] Bernard explains the different types of QRPs out there. [00:11:17] Bernard explains how to correct a mistake you make in a check book 401K.[00:12:40] Bernard explains about prohibited transactions[00:13:21] What are the differences between IRA and 401K? [00:15:02] Bernard explains the rules required to have a solo 401k.[00:21:51] You have to include someone in a 401K plan only when they work a minimum of 1000 hours per year for your business.[00:25:36] Traditional IRA, you can put in on an annual basis of $6,000. With QRPs, you can put in $56,000 a year[00:26:33] Bernard explains UBIT and UDFI.[00:30:49] Bernard explains how UDFI tax works.[00:43:33] Cannabis businesses qualify for QRPs.FOLLOW BERNARD REISZ:Websites: https://www.401kcheckbook.comLinkedIn: https://www.linkedin.com/in/bernard-reisz-cpa/Consult and Free Entity Formation Call: https://bit.ly/2Rw9N1vEmail: Bernard@ReSureFinancial.comJoin our free Facebook Group at www.EastWestVentures.com/AIMSListen, subscribe, rate and review: Apple: https://apple.co/2BdPdeJiHeartRadio: https://ihr.fm/2MPxyAuSticher: https://bit.ly/2pUgd0vListen Notes: https://bit.ly/2JtpZxiTuneIn: https://bit.ly/2NhRCe2Support this show http://supporter.acast.com/the-real-estate-lab. Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.

Taxes can be fun. Just ask those who attended the recent Tax-Wise Workshop and Tax Tuesdays hosted by Toby Mathis and Jeff Webb of Anderson Advisors. Do you have a tax question? Submit it to taxtuesday@andersonadvisors. Highlights/Topics:  I have a corporation, but it does not earn income. Do I still need to file a return? Yes, you’re required to file a return every year of its existence If I am self-employed, or own a small business, are the health insurance premiums tax deductible? Yes, health insurance premiums, but you can’t write-off other costs  What are the differences between a Solo 401(k), Qualified Retirement Plan (QRP), and Cash Balance Pension? Most 401(k)s and QRPs are defined contribution and/or profit sharing plans; Cash Balance Pension is a defined benefit plan How do I sell a husband-and-wife owned C Corp to reduce taxes? Whenever selling a business, try to sell the company’s shares for long-term capital gains Can I offset gains from rents with depreciation? Yes I have eight units in my own name. Will I save on taxes this year, if I transfer them under my LLC? No, it doesn’t make any difference; there’s no real benefit to doing it that way For all questions/answers discussed, sign up to be a Platinum member to view the replay! Go to iTunes to leave a review of the Tax Tuesday podcast.  Resources: HUD/Section 8 Housing Cost Segregation Tax Breaks! 401(k) Solo 401(k) Qualified Retirement Plan (QRP) Cash Balance Pension 280A Opportunity Zones FAQ Opportunity Zone Heat Map Foreign Earned Income Exclusion Roth IRAs 501(c)(3) K-1 Participation Loan Agreement Real Estate Professional Requirements Passive Activity Losses - Section 469 Depreciation Recapture Bonus Depreciation Capital Gains Exclusion/Section 121 Section 105 Health Plan Reimbursement Self-Employment Tax Schedule E Section 1244 Stock Loss Kiddie Tax Types of Trusts Unrelated Business Income Tax (UBIT) Toby Mathis Anderson Advisors Anderson Advisors Tax and Asset Protection Event Tax-Wise Workshop Tax-Wise 2019 3-in-1 Offer/2fer Tuesday Bulletproof Anderson Advisors on YouTube Anderson Advisors on Facebook Anderson Advisors Podcast

Bernard Reisz is committed to providing unbiased, integrated, expert financial & tax solutions. His focus is the establishment of tax-sheltered accounts (IRAs, 401(k)s, QRPs). Through ReSure Financial, you can get the most cost-efficient, flexible, tax-sheltered investment accounts that give you total control over your money. If you want unrestricted access to any investment you choose, you can’t pick just any investment company. When it comes to financial decisions, your advisors are ultimately salespeople. Learning a little goes a long way toward making the best decisions for yourself. In this episode, we’ll talk about formal education and self-initiated learning — and why you need both. Something as simple as reading a book could help you learn about investing. Perhaps even more than Wall Street wants you to know. Find Bernard at 401kcheckbook.com

Dan and James apply the pomodoro principle by tackling four topics within a strict ten-minute time limit each: James' new error detection tool, academic dress codes, the "back in my day..." defence for QRPs, and p-slacking. Here are links and details... * James won an award * James’ new error detection tool, DEBIT (https://osf.io/pm825/) * Academic dress codes * P-slacking * The p-slacking paper (https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3408200) * Marcus Crede’s paper: A Negative Effect of a Contractive Pose Is Not Evidence for the Positive Effect of an Expansive Pose (https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3198470) * A preview of our next episode on conflicts of interest in psychology Other links - Dan on twitter (www.twitter.com/dsquintana) - James on twitter (www.twitter.com/jamesheathers) - Everything Hertz on twitter (www.twitter.com/hertzpodcast) - Everything Hertz on Facebook (www.facebook.com/everythinghertzpodcast/) Music credits: Lee Rosevere (freemusicarchive.org/music/Lee_Rosevere/) Support us on Patreon (https://www.patreon.com/hertzpodcast) and get bonus stuff! $1 a month or more: Monthly newsletter + Access to behind-the-scenes photos & video via the Patreon app + the the warm feeling you're supporting the show $5 a month or more: All the stuff you get in the $1 tier PLUS a bonus mini episode every month (extras + the bits we couldn't include in our regular episodes) Episode citation and permanent link Quintana, D.S., Heathers, J.A.J. (Hosts). (2019, July 15) "The pomodoro episode", Everything Hertz [Audio podcast], doi: 10.17605/OSF.IO/VTDQ8 (https://osf.io/vtdq8/)

The more you know and learn about taxes, the less likely you are to be audited. According to the recently published 2018 Internal Revenue Service (IRS) Data Book, only 0.5 percent of all returns filed in the 2017 calendar year were audited. Toby Mathis and Toni Covey of Anderson Advisors often answer your tax questions with “it depends.” Why? Facts and circumstances. Do you have a tax question? Submit it to taxtuesday@andersonadvisors. Highlights/Topics:  How do you know if you're overpaying taxes for your LLC? Refer to tax designation of LLC and compare it to other choices (i.e., corporation, partnership, sole proprietorship) What are the most beneficial types of qualified retirement plans (QRPs) and LLCs for tax shelters? It depends, but try things that defer taxes (401k, real estate, C or S Corp) How can we protect a Special Needs Trust from probate? Avoid probate through a living trust by adding special needs provisions for when it becomes irrevocable I have several personal IRA accounts and want to convert them to a QRP in our real estate investment company. Can I use that money to purchase more properties? Yes I have owned a property located in a qualified opportunity zone for a number of years. Is there any special tax benefit, if I install a new roof? No Do I always need to take salary out of my C Corp? No, salary is a part of compensation and still requires withholding and paying taxes How do owners receive a yearly salary from their businesses? You pay it; there's no federal rule for pay periods, but some states require pay periods for certain employees Do I have to designate myself as a dealer, if I do fix and flips? IRS designates you as a dealer based on facts and circumstances; doesn't matter how long you hold a property Can I write off a vehicle that’s 6,000 pounds or more? Yes, you can write off entire cost, but limited to $18,000 a year, and more than 50% must be for business use What is a 1031 exchange? Selling real estate and buying more of equal or greater value to not pay taxes and use an intermediary Does S Corp need to pay payroll taxes? You pay some payroll taxes, as opposed to sole proprietorship - where you pay 100% of payroll taxes  For all questions/answers discussed, sign up to be a Platinum member to view the replay! Go to iTunes to leave a review of the Tax Tuesday podcast.  Resources: 2018 IRS Data Book  Traditional IRAs Roth IRAs Google Maps 501(c)(3) Nonprofit/Charitable Organizations Schedule E Schedule A Types of Trusts Tax Cutting Jobs Act (TCJA) Opportunity Zones FAQ Opportunity Zone Heat Map Business Vehicle Deduction Modified Accelerated Cost Recovery System (MACRS) Using Cost Segregation in Residential Real Estate 1031 Exchange Bonus Depreciation MileIQ Explaining the Trump Tax Reform Plan Home Office Deduction Uber Form 1120 Tax Cuts and Jobs Act, Provision 11011 Section 199A - Qualified Business Income Deduction FAQs 1099 MISC Self-employment Tax HUD Toby Mathis Anderson Advisors Anderson Advisors Tax and Asset Protection Event Tax-Wise Workshop Tax-Wise 2019 3-in-1 Offer Infinity Investing Workshop (use code: FREETAX) Anderson Advisors on YouTube Anderson Advisors on Facebook

Full notes and SPC guide to QRPs and Retirement plansSimplepassivecashflow.com/QRP See acast.com/privacy for privacy and opt-out information.

Full notes and SPC guide to QRPs and Retirement plans Simplepassivecashflow.com/QRP

My guest today is a really interesting guy with a lot of great stories to tell.  Damion Lupo has a 5th degree black belt in real estate investing, and he's a financial transformation architect.  You'll have to listen to this episode to understand what both of those mean.  You'll also want to listen and learn how Damion built up a portfolio worth $20 million, and then lost much of it in the Great Recession. Damion shares many of his crazy stories about losing money, dealing with tenants, and why his investment career can be compared to the tv shows "Breaking Bad" and "Dexter".  Damion talks about spending over $1 million on seminars, gurus, and mentors, and what he's gained from those experiences.  He explains why he won't do business with anyone in their 20's, and discusses his thoughts on where we are in the current real estate cycle and what might happen during the next recession. Damion is also an expert on "QRPs", or Qualified Retirement Plans.  He'll explain what they are and the power they give investors over their retirement accounts.  He'll also compare them to Self Directed IRAs and explain why he believes QRPs are preferable. I know you're going to enjoy this conversation with Damion.  You can download a free copy of his book by going to www.qrpbook.com You can also visit Damion's website: https://www.totalcontrolfinancial.com/  

It’s time for Toby Mathis and Jeff Webb of Anderson Advisors to answer your questions about taxes, the IRS, and much more. Do you have a tax question for them? Submit it to Webinar@andersonadvisors.com. Highlights/Topics: What is Nexus? Why do I care? Nexus is a state’s right to tax your income; different types (tax and physical), state laws, and throwback rule - how they affect you Does IRS reimburse me for corporate expenses? Misconception about reimbursement from the client’s company or IRS; IRS doesn’t give you money, but let’s you write it off How do I qualify for a real estate professional status? Requires 750 hours as #1 use of personal professional time; know importance of passive activity loss and logging time What are self-dealing rules for non-profits, IRAs, QRPs? Particular entities can’t interact with a disqualified person - can’t sell them anything; but self-dealing exceptions exist Am I dealer or investor? What’s the difference? Investor is passively involved, dealer is actively buying/selling real estate; can depend on the intent and timeframe Why set up an LLC that does flipping as a C or S Corp instead of a partnership? Because it’s taxed as ordinary income and subject to self-employment tax What is UBIT? Unrelated business income tax is when a plan/non-profit isn’t doing what it’s set up to do; can have passive activity until it competes with active businesses I hold rental property in a self-directed IRA. What can I do? There’s things you can/can’t do, especially add value to a property, so find a property manager and IRA custodian My wife’s previous employer’s stock options were exercised and have peaked. If we cash in, what’ll be the tax consequences/burden? Long-term capital gain and opportunity zone I’m helping a friend with a crowdfunding project. What are tax consequences with no deductions? Does he pay tax on donated money? No tax for less than $15,000 per donor How to aggregate all properties? Disadvantages? Election form that your print with your tax return to identify properties; doesn’t free up large losses tied up If real estate investing part time, are you considered a part-time investor? You’d be a part-time investor, not real estate professional; determining factor is to document time How do I get the 501(c)(3) tax-exempt? Use the 1023 application How do you create an LLC in an IRA? IRA custodian enters into a contract with a company to create an LLC, or set up a 401(k) to roll the IRA into it without a custodian Investing in LLC for holding rental property. How do you avail to a 1031 exchange? Need a 1031 exchange facilitator and LLC must buy or sell the next property within 180 days If I receive social security benefits at 62 and not currently employed, but do receive interest income. Will it affect my SS benefits? Can be isolated into its own taxable entity My wife and I are the only shareholders and both take a ⅓ salary. Is that the right amount? You should take a ⅓ of the net profit as salary instead How do you put an LLC on hold? Do nothing with it or pay the state; file non-activity return Will real estate holding LLC taxes partnership qualify for 20% pass-through deduction? Yes, if not triple net property For all questions/answers discussed, sign up to be a Platinum member to view the replay! Resources Anderson Advisors Tax and Asset Prevention Event Toby Mathis Anderson Advisors U.S. Supreme Court Reverses Long Standing Law On Collection Of Sales Taxes Northwest Energetic Services LLC vs. California Franchise Tax Board Throwback Rule SALT Limit After 24 years, wealthy inventor gets his day in tax court – and wins 10 Tax Deductions That Will Disappear Next Year Passive Activity Losses - Real Estate Tax Tips Real Estate Professional Status - Becoming More Important - Very Hard To Prove Acts of self-dealing by private foundation Unrelated Business Income Tax Opportunity Zones Frequently Asked Questions About Form 1099-INT | Internal Revenue Service Exemption Requirements - 501(c)(3) Organizations Form 1023 Taxbot MileIQ Tax Cuts and Jobs Act, Provision 11 011 Section 199A - Qualified Business Income Deduction FAQs   Full Episode Transcript Toby: Alright, welcome to Tax Tuesday, this is Toby Mathis joined by our tax manager Jeff Webb. Jeff: How do you do? Toby: We're going to get jumping on here. We're just going to jump right in. no time like the present to just get business done. So first off, happy Tuesday. Second off, let's jump into a bunch of questions that are giving us a steady feed from folks even before we got started. I'm sure I'll be more happy than to answer your questions. I also got emails in from folks that I may be trying to make sure I answer all of those and we'll just make sure that we're getting through each and every question to the extent humanly possible within this hour. So the first one is, what is Nexus and why do I care. Second one is going to be, does the IRS reimburse me for my corporate expenses. Third one is, how do I qualify for real estate professionals, technically real estate professional status. What are self doing rules for nonprofits in QRPs. I'm going to throw in IRAs in there as well. Am I a dealer or an investor, what difference does it make. Those are the ones that we're going to hit one after the other in succession. I'm making sure that we're getting through these. So the first one is, what is nexus and why do I care. Jeff, do you want to hit tax nexus because there's different types of nexus. There's physical presence for lawsuits and there's tax nexus for taxation. I'm going to have Jeff hit the tax and then I'll touch base on the physical nexus. Jeff: So when we're talking about tax nexus what we're primarily talking about is a state's right to tax you on your income. For example, you may live in Nevada, have a rental property in California. California has a right to tax any income on that property because you're doing business within California. There are different roles, there have been numerous cases on nexus. Toby: Most recently, our Supreme Court reversed a physical presence test that the error that Amazon, everybody that was an online retailer use to avoid state sales tax and that was just changed. Jeff: Yeah, on that one in particular the Supreme Court as Toby said, gave the states the right to tax online sales in their states. The thing is, the states now have to write tax walls to accomplish this. Most of the states don't have anything that accomplishes this. Toby: A lot of times, ignorance is bliss. People would avoid sales tax like for example, I live in Washington, Florida, Oregon and avoid the sales tax and they ignored Washington's use tax. A lot of states have this. You don't pay sales tax and you go someplace where there is no sales tax, you still owe sales tax on it but they call it use tax because you brought the physical item into your state and you never paid sales tax on it. So then they would say, "Aha." And the really interesting thing – there were actually some interesting cases that were popping up from the nexus, ones that came out of Washington, was Northwest Energetic Services too and that was a case in California where they tried to tax an organization that was registered to do business there that didn't actually do any business in California but they wanted to tax its worldwide revenue. The franchise tax board of the board of equalization lost that one and they had a few others but what you'll find is that this is a continuously active in generating area of tax law and we tend to fall into the category of ask for forgiveness not for permission all the time because if you ask a state whether you should be paying tax, they will gladly say yes even if it's not a legitimate tax. They'll tell you that you have to pay it even though it's made to be unconstitutional, unlawful, you fill in the blank. Even if you don't owe it, they'll oftentimes just answer, "Yes, of course you should." They can't actually be giving you any tax advice anyway so it's the wrong party to be asking. I'm sure Jeff you get to deal with that more than I do. Jeff: Yeah, in a state like California, it used to be an old joke for the CPA's that you could be flying over the state of California, make enough business phone call and California would want to so you have nexus and we can now tax you. They're also a state that's very difficult to leave if you're a resident. We had a case where somebody, NBA player for the Sacramento Kings was traded to Seattle Sonics and moved there. Toby: Yeah, now the Oklahoma City Thunder, I was there when they move, horrible. Jeff: The state of California wanted to say, "No, you're still resident of California, we're still going to be taxing you because you got friends here and you have club ownership, some relationships. California in particular is very tenacious with Nexus. Toby: Yeah, so you're going to see things evolving over the next few years since the Supreme Court decision was literally this last, I think it was just months ago or end of the year last year. You're going to see the states trying to fill in the blanks. So you have some states for example in drop shipping, Pennsylvania would tax you if you drop ship out of their state where it used to not be, other states did before. We were talking earlier before the webinar, Jeff and I were talking about what is like a claw back. Jeff: Yeah, it's called a throwback rule that says if your sales into a state that doesn't have taxes then where it got shipped from can tax instead. Toby: Somebody's asked, what are the worst three states for nexus. It really depends on what you're doing, but I would say just off the top of my head probably New York, Connecticut and California. They're pretty heinous. Look at the states that just filed a lawsuit against the federal government under the SALT limitation which is the State and Local Tax Limitation. You'll see I think there was four states Maryland was one of them, where they try to hit you with so many different taxes. It's not just business, it's on your personal as well. It's just for nexus, for a person, it's really easy to figure out, "Hey, where do you live?" Because when I say it's easy, it can be difficult if you have two residences that you spend time with equally. They're going to add up things like how much utility you use, where your driver's license is. Where your kids go to school, where your vehicles are registered, you're going to look at those types of things. There's Hyatt v. Commissioner Case or what was it, Hyatt versus board of equalization I think is actually what it was. Where a gentleman moved to Nevada and the California franchise tax board sent agents to Nevada they climbed to his garage and break into his apartment to prove that he was actually residing more in California than he was in Nevada because his tax bill would've been so great and when they got caught, they said they're immune. Our Supreme Court and Scully I remember the opinion was scathing on them saying, "No, you're immune in your jurisdiction. When you cross the state lines, don't expect any immunity." They just harassed that poor guy. They were climbing around his house. So let's just narrow it down though. You asked a question what is nexus. There's two sides, there's tax nexus and then there's physical nexus. In the physical nexus again where you reside, it's pretty easy. If you live there, then you have a physical nexus in that state, it's where you have a house. In the business it's no different. In a business, you have to decide where it's going to have its main presence and the courts have held having a bare office and nothing more isn't going to be sufficient. You actually have to do something there. That's when you actually have to have a physical office space. We use virtual office where it's doing more than just maintaining a registered agent. There we're actually giving conference facilities, phone answering, we'll do document prep and things like that for the governance of the company so the company can actually have a physical presence. The reason that you do that is to make sure it has a home. So if somebody's coming after one of its shareholders or members, one of its owners that it does not draw that entity into the state where they're located. So, if I have owners in a company and I have my company set up in Wyoming and they sue me in Nevada and they sue somebody else in Texas and somebody else in Florida, you don't have a choice between the Nevada, Texas and Florida where the shareholder or where the members of the LLC are located, they would actually have to go to Wyoming where the actual entity is located. That's what you're trying to do. So if Anderson does my meeting notes, that's why that's important. We're not talking about Canadian, US the nexus pass. I could tell you a fun one. We had a client that just got nailed by California. It's actually under the FBAR which is Foreign Bank Account Regulations. They had some interest on a bank account that was there for a condo they had in Whistler and they sold the condo in Whistler and they didn't report, I think it was like $70 or $76 worth of interest. Jeff do you know these off the top of your head? How much the penalty is? Jeff: No. Toby: If the IRS catches you, it's 50% of the account balance per year. But if you go under amnesty which they have taken an amnesty was a $38,000 fine which they paid for that $76. Canada is still offshore. Anyway, so what is nexus and why do I care. It gets a little convoluted but the reason you care is you don't want to draw your company into your state, you want to make it very difficult for somebody to get a hold of your assets if they're coming after you. From a tax standpoint, it matters because we want to keep our business activities to the extent possible in the lowest taxing jurisdiction as humanly possible. So that's that one. Jeff this is one of your favorites, I know. Does the IRS reimburse me for my corporate expenses? Jeff: Of course they do. IRS is really giving out money. We get this question more often than you would think. I think it's a misconception that clients are being told that their companies can reimburse them for certain expenses which will reduce our taxes and sometimes the clients are hearing IRS is going to reimburse us. The only time you get back money from IRS is if you pay money into IRS for taxes and you don't owe them any tax or maybe overpaid them. Toby: Yeah. IRS is a policing agency. Your taxes when you pay it, they don't even go to the IRS, it goes to the US treasury. So the IRS is merely, pay my boss, is all they are. So they don't give any money out whatsoever so the IRS does not reimburse you for your corporate expenses. What the IRS does is it enforced the laws which is the United States code and issues regulations interpreting that code and is basically the enforcement arm for the US department of treasury. What ends up happening for corporation is they're allowed to reimburse shareholders many expenses that are not included on the shareholder's personal tax returns. So it sometimes seems like they're giving you money when in all reality, they're allowing you to not pay tax on your expenses which is always the battle because there's lots of rules out there that say things are not deductible. Nothing more telling them what we just had happened in this tax change where they eliminated all miscellaneous itemized deductions. All of them are gone in case you've been sleeping. In 2018, you do not get to write them off anymore. Jeff: Now that's your union dues, your tax preparation fees. Toby: Any unreimbursed business expense if you're a teacher and you're providing stuff for your classroom, you don't get to write it off. Jeff: If you're paying substantial amounts to your broker for advisory fees. Toby: That's a huge one. We're going to see that one come back and bite people in their touché. Jeff: That's no longer deductible. Toby: So it's horrible. So no, the IRS does not reimburse you for your corporate expenses. Your corporation reimburses you for your corporate expenses and the IRS lets you write it off. How do I qualify for real estate professional status. Jeff do you want to play with this one or do you want me to handle it? Jeff: I'll do a little and then you can correct me. So real estate professional has a hours commitment. I believe it's 750 hours a year. Toby: So it's a minimum of 750 hours. There's a second part to that too, you know that. Jeff: And the 750 hours can be earned by you or your spouse. What's your second one? Toby: The second one is it has to be the number one use of your personal professional time. Jeff: Oh, correct. Toby: The way I always explain this is if you did 1001 hours doing bicycle repair and you did 1000 hours of real estate, you do not qualify as a real estate professional. But if it's reversed and you did 1000 hours of bicycle repair you did 1001 hours of real estate activities, then you do. And the reason this is important is because ordinarily, your real estate expenses are offset your real estate income and you can only take losses from real estate. In other words, the excess depreciation, or repairs, or whatever, your losses are limited to $3000 a year against your other active income. So that's called the passive activity loss rule. Jeff: $25,000. Toby: If you materially participate and then you have $100,000 to $150,000 scale up. There's some little nuances which don't bring your head with. At the end of the day, there are restrictions on taking passive activity loss. Real estate professional status removes that restriction. The other thing that's really important about real estate professional status is it is per property. So if you have three properties, you'd have to meet it for each of the three unless you elect to aggregate all your properties on your tax return. We have seen this missed by accountants who don't do real estate. They don't aggregate and there are actually cases on the book where people had to fight and they literally had tons of properties they easily met the 750 if you aggregate it but their accountants miss the aggregation election. Jeff: And the sum of 750 hours is not just for your rental properties. Toby: Any real estate. Jeff: Any real estate activity. Toby: Yeah. Jeff was actually right when he said your spouse could qualify, either you or your spouse if you're filing jointly. Jeff: So if you have a full time job and you're getting a W2, I can guarantee you that you will not legally qualify. Under audit, you're going to lose. However, if you have a full time job and your wife does not or your husband does not, they can qualify to be that real estate professional. Toby: We had a fun one. A good friend of ours and a colleague in Georgia was making somewhere between $2 million and $3 million a year in his professional practice. His wife qualified as a real estate professional and he quite literally bought enough commercial property and did something called cost segregation where you're rapidly depreciating it where he generated enough loss off the real estate to offset his income. The IRS audited it, he is self represented because he knew the rule. It withheld, he stood up. His wife just did their real estate activities and he did their practice and at the end of the day, she met the requirement for the real estate professional status and the rule is pretty straightforward. IRS didn’t like the outcome but that's not their job. So they picked a fight and lost the audit which is not uncommon. All right, so how do I qualify for a real estate professional. Keep a log of your time and make sure that you're aggregating all of your real estate activities. Even if it's for a closely held company, it's still going to match, it's still going to work. Next one, what are the self dealing rules for nonprofits in QRPs. I'm going to add in there IRAs as well since when we talk about a qualified retirement plan, we're really talking about 401K and 401A. This is going to dovetail in with one of our other questions that came in off the internet as well. But here's how it works. If you are in a particular type of entity where it says you cannot interact and engage in business with a disqualified person, you could not sell them a $1 million building for $1. It is an absolute prohibition against self dealing. The most important first step is determining whether or not you're within one of those rules. Then if you are, then you look and say are there any exceptions to that rule. So for nonprofits, nonprofits are going to fall into broad categories foundations, private foundations are one. These are nonprofits that aggregate money and give money to other nonprofits, they don't do anything. And in that one, you have an absolute bar from self dealing. The next one is an operating nonprofit that is doing something and in that case, you just have to use arm's length transactions. So we look at that, that's our step number one. So let's go back to the first one, private foundations then you look and say, are there any exceptions. The only exception is reasonable compensation, it can always be reasonably compensated. But other than that, no more transactions. So for nonprofits 501(c)(3) you can enter into transactions as long as it's an operating nonprofit. It can give you benefits, it can pay you and it can engage in sales and other transactions between you and the agencies so long as they are arm's length. And the way you make sure it is arm's length is you have non-interested parties looking at it saying, "Hey, that looks okay to me." somebody who doesn't have a dog in the fight. Now we go to QRPs and IRAs. In either one of those, you have absolute prohibitions against self dealing with disqualified parties and disqualified parties are lineal descendants which would be grandparents, children and their spouses, great children and their spouses. It does not include your siblings. So what's interesting is you could actually engage in transactions with your IRA for example, loan money to your brother. You cannot loan money to your mother. You could not loan money to your kids or your grandkids, you could not do a second on their house, you could not do anything between the company. You could not buy a house from them. That is an absolute bar that's called, disqualified party. Jeff: The way I kind of look at it as to whether you may be violating self dealing rules is, are you benefitting from a transaction between you and the nonprofit or the QRP or the IRA. That's really what they're out to prevent. And unfortunately the rules are pretty severe for violations of the self dealing. Toby: If you self-deal, you're just going to disqualify your IRA. If you're using a QRP and you're using a 401K, then we have different rules, and in that particular case, it would just disqualify the money that you actually were utilizing. Their far more lenient. Jeff: I had a client who had a QRP, it was actually defined benefit plan, who had a required minimum distribution to make and the plan was not funded at the time. The client had to make a loan to the QRP, which is a self-dealing but unfortunately there's an exception for that that one was quickly repaid. There was no profit or interest earned on it. Toby: Was it within the 60 days? Jeff: I believe it was within 60 days. Toby: There's some more fun stuff. Then we go into the 401Ks and this is where you get into people acting on behalf of the company. I know that there were some questions, that were already posed in the chat feature here. You're not supposed to be getting any personal benefit or using those funds at all when you have an IRA or a 401K. In an IRA, it's much more severe because you have a custodian. So if a renter for example is paying you money and they pay it to you individually, technically you have a violation of the self dealing rules because you just received money. Even if you go ahead and put it right back in the IRA, you're going to have an issue because technically you weren't supposed to receive the money, the custodian was supposed to be receiving the money. So you should actually have rental money going to your custodian if you’re using an IRA. If you’re using a 401K or 401A, which the profit sharing plan or 401K, then you are the trustee and you're able to accept the money and endorse it right into the account and make sure that the money goes to the right place. IRA's are a little more difficult. To get around this, a lot of people with IRA's will set up an LLC which you can be the manager of. Actually, the IRA is technically the member— you're in non compensated role and we have to make sure that the LLC agreement says that if we drafted it, then we make sure that we're putting in the non-prohibitionals. You cannot personally benefit from these activities. It has to all go back to the retirement plan. People will do the LLC and they will be all right, now I can go ahead and accept the funds through the LLC, that's how they do with an IRA. If you're doing with the 401K, we're going to suggest that you still set up an LLC anytime you have real estate, just because we don't want the liability to flow through to you. But there, now, you don't need the custodian. You could technically do it inside the 401K directly though you should still have the LLC and it's the same scenario where you're able to accept the proceeds. That's not going to be a technical violation because you're acting on behalf of the plan. And that is not a violation of the self dealing rules. So the biggest takeaway from all this, is that you can act on behalf of the plan. The second a just qualified person starts to get personal benefit, you have violated the rules and if it's an IRA, the whole thing is violating—considered a taxable event, which should be that 10% penalty plus income tax on it for the entire amount if it's at 401K or 401A, it would just be the portion that you violated. We tend to be very bullish on using 401Ks and 401A's, profit sharing plans around here also known as QRP. And this is why, because they're far more forgiving and they have a less moving pieces. I hope that explains that. We're going to have—I know there's a couple more questions that are in here, that are going to be relevant to this section as well. Let me jump on to something. The questions, this is something you can ask detailed questions via our email. I will answer them, Jeff or Tony, whoever's from the tax department here. We will answer these on the tax Tuesday. We will also more likely be responding back out to you directly as well because we want to make sure you get your questions answered, but just jot down that address, webinar@andersonadvisors.com and feel free to shoot them in. Since our last one, Tax Tuesday, we had a couple of questions and I want to go through these. Number one was from Karen out of Alaska, "I have a revocable trust in Alaska that owns and sells real property, does the trust to pay income taxes on the profit or does the profit end up on my personal tax return? Is it taxed at the same rate as everything else? So the most important word she used in her question was revocable, because trust come in two flavors, revocable are irrevocable. If they're irrevocable, then we have two choices, we don't have to worry about the irrevocable.. Since it's revocable, it's a grand tour trust is ignored, it's you, for tax purposes until your dead. So you're good, sorry, sometimes I'm blunt. So if you're buying and selling real estate, real property it's taxed no differently than if you're on the real property. Now here's the rub, it also gives you know asset protection. So revocable trust is giving you know asset protection with that real property, so I would really strongly suggest that the revocable trust actually be the owner of an LLC that is buying and selling the real estate and depending on how quickly you are turning this, will depend on whether that say, S or a C-Corp., if it's a flip versus if it is a long-term holds, then we just put it as an LLC. It would either be disregarded or taxed as a partnership. We want it to flow under our return. Those are kind of our choices. There was a question, I don't know if I got to that. I'm going to skip back to our slides. There's something about—Am I a dealer or an investor? So I want to make sure that I'm getting this one right here. Because this is relevant to one of these questions. A dealer and an investor is something that we talk about in real estate, you want to hit on this? Jeff: No, you're doing fine. Toby: An investor is someone who's passively involved, a dealer is somebody who is actively buying and selling real estate. So if you buy real estate with the intent to hold it for its long term appreciation cash flow, then you are an investor. If you buy real estate with the intent to sell it, then you are a dealer. The easiest way to conceptualize this is if I am an investor, I am passive. If I am a dealer, then I am a supermarket with inventory. And I'm putting my real estate on a shelf and it's constantly for sale. Just like at your grocery store, it may take a couple years for something to sell. I'm just imagining the items that are on the shelf. Jeff: Your durable goods. Toby: Right, so you sell something, I used to do liquidation. We would grab all the expired items we would sell them but let's say, it doesn't matter how long you held them. A lot of people think, well if I held it over a year, I can't be a dealer. That's not the case, we actually have cases on the book where they held it over 10 years. What matters is what your intent was when you buy it. And the difference it makes is active income versus passive income. The difference is an investor can 1031 exchange and defer all other taxes. An investor can get long-term capital gains, an investor can do installment sales, an investor can spread out the tax liability over a long period of time. Whereas a dealer is active. It's subject to social security taxes, it's taxable immediately even if you don't receive the money. It is active ordinary income, it's no difference than I just sold that box of Cheerios on the shelf that I've been waiting to sell. It makes a huge difference. Dealer activity we're going to isolate inside of an S-Corp or a C-Corp. Investor activity, we're going to make sure it flows on your personal return either by using a disregarded LLC or a partnership LLC, one of the two. Jeff: Intent has really made a difference in a couple of cases. One, where somebody bought a property that they go allow their child to live in, something end up happening then they sold it after a short time. They were considered to be an investor not a dealer. Toby: It doesn't even matter. It does not matter whether you ever rented it, there's plenty of cases where somebody tried to rent it and they were going to use it as a long term hold and then things change and they sold it. Just know that if you buy or sell within a year, the presumption is going to be that you're a dealer. If you hold for over a year, the presumption is going to be that you're an investor but it's not a guarantee. We're going to get back to these questions. How does Flip LLC income flow into S-Corp and then what will be distributions of the seller? So, we talked a little bit about this last week but I'm going to go and we're going to hit this. When you set up an LLC, it doesn't exist to the IRS. So when you say how does the Flip LLC flow into S-Corp, it doesn't. A Flip LLC is an S-Corp if you elect to have it be treated that way with the IRS. The income is just going into an S-Corp. Then you have to decide what your salary will be because if you know anything about an escort S-Corp, you want to make sure you pay yourself a reasonable salary if it's making money. The rule of thumb to use is, one third of your net income should be paid out as salary. That's just a rule of thumb but it's all in all reality the IRS has this funky test where you're supposed to say, "Hey, what would it be? What could it be paid?" they never tell us exactly. So I'll just say this, pay a third, don't worry about it. If you get too much money, if you start making over $300,000, then we're going to have a chat but where you're going to be on our radar anyway, we're going to be making sure you're paying a reasonable salary anyway. The reason this is important is because the salary is subject to old age death and survivors in Medicare also known as FICA or social security and the distributions are not. So what you would do is you'd be cutting your social security tax by about two thirds if you did it that way. I hope that explains it. So it makes its money and it pays it out. We do need to make sure that if you're flipping, that the money goes into the LLC. Jeff: A quick comment on distributions on an S-Corporation. Distributions are typically the money that's already been taxed are in you're just pulling the cash out. What you don't want to do is go out and get a bank loan in S-Corporation and take distributions from that for several reasons. One, you don't have basis in those distributions. Two, it gets into the whole finance distribution issues and things of that nature. So you really only want to be pulling money out of the company that you’ve already been taxed on. Toby: Fair enough and then if you don't pull any money out of an LLC that's taxed as an S-Corp, you don't technically have to pay yourself a salary. You just let it sit in there and keep growing which your accountant is not going to tell you because they don't know that. The reason I know that is because I have spoken to probably 100 accountants that missed that one. It says, why do you want the LLC that does flipping set up as an S-Corp or C-Corp instead of a partnership? Mark, we were just talking about that because it's taxed as ordinary income as subject to self employment tax. So the reason we want that in an SRC is so that you do not get classified as a dealer because then all of your real estate is dealer real estate and you could lose all your long-term capital gains, you to lose your 1031, you could lose your installment sale. So we want it to be a separate taxpayer from you so the IRS notes clearly who the investor is and who the dealers is and then you can reduce the amount of tax hit by using the S-Corp that will reduce your self-employment tax significantly, if you add a 401K to it, you could eliminate your tax or defer it out into the future. If you use a C-Corp, then depending on what your expenses are, we can also eliminate all your tax or at least reduce it significantly. So that's why we use that. All right, we have a whole bunch of questions to go through so I'll go through this. What is UBIT and UBITA. UBIT is unrelated business income tax and the easiest way to understand this is when you have a tax deferred entity or tax, it's not actually a tax rates, it can be tax rate if it's a Roth but when you have a qualified plan or a nonprofit and it is not doing what it's set up to do, so let's say in an IRA or a 401K or a 401A, or a nonprofit, they're all set up to do certain things. They're allowed to have a passive activity which is rents, royalties, dividends, interest, even capital gains and it can have those and you don’t have to worry about it at all. But once it starts competing with other businesses, active businesses, now you have an issue and that's what's called—let's say that you have these ordinary businesses. Then they would be taxed, generally speaking it's going to be the highest rate at 37% I believe is what it's going to be as kind of a disincentive to engage in traditional businesses inside those exempt organizations. The easiest way to look at this, let's say you set up an IRA and it runs a mini mart, you're going to pay tax on those profits just like anybody else would. The exception is if that IRA owns a corporation that does not pay out the profits directly. It would have to own C-Corp and then it would only receive dividends and then those are considered passive. So it gets funny and a little bit difficult. The other one is let's say you set up a nonprofit, that's for—what's a good one? Helping Vet and then it sets up a pizza business on the side and starts competing, it buys a bunch a Domino's franchises. It's going to pay tax on the Domino's franchise. It doesn't get a big huge competitive advantage selling pizzas because it's a nonprofit. It would have to be for its charitable purpose and that's UBIT. Jeff: One place we see a lot is like hospitals, they're usually tax exempt but they may have a gift shop which they have to pay the business income tax on because it's not directly supporting them but it is a business. Toby: But you're allowed to do that for like what is it, Salvation Army and some these other thrift stores. They'll let you have one for a church and whatnot. If it's ancillary, if it's completely ancillary and it's just being used like thrift stores I think are one of the few exceptions, gift shop absolutely, you're head to head. Here's another one and I think that this may be what Diane was looking at, it's debt financed income. What that is, is if I'm using the leverage, then there's an exception for IRA's where it cannot use loans to generate income, it's considered an unrelated debt financed income. It will be taxable That is not the case for 401Ks and for 401As, which is what—if you've ever been to one of our events, you hear us railing on the idea that if you are going to finance real estate, real estate is considered passive and it's considered okay not UBIT. The only way you make it taxable is if you leverage it inside of an IRA, so don't do that. If you're going to leverage it, make sure your rolling that IRA into a 401K or profit sharing plan which is the 401A. So there, that's my two cents. I figure that maybe they had a funky—UBITA, I have no idea what that is, but it looks neat. I think they were probably referring to get financed income, since those things usually go side by side. All right, we have a ton of questions that have been posed and this is so much fun, we have like literally a jillion questions, if that's the number. All right, so here's the first one, if I cash out refinance or borrow an equity loan from my primary residence, use the money to do private lending by rental property, can I deduct the interest expense as an investment expense beyond $750,000 amount? They're throwing some things in here. This is actually a really long question, I'm giving you the thumbnail sketch of it. Hey guys email those types of questions in, because nobody's going to be out to follow this, but here's what here's what they're saying, we now have a restriction on your mortgage interest, it's $750,000. If you borrow on your house, and by the way it's $750,000 now, if you had a loan on it up to $1 million, you're grandfathered in, if those prior to what was it, 12/15/2017, you're good or if you got your long before April 15th and you already started the process before December 15, don't you make my head hurt. Long and short of it is, let's say $750,000, but your house is worth $1.5 million. You borrow money out of your house. You will not be writing that off personally, you are capped at $750,000 and that's on your schedule A. Whether or not you're getting any benefit out of that is to be seen because you have your standard deduction. I imagine it's going to be above the standard deduction if you're borrowing up to $750,000. Let's just say we have our $750,000 and we borrowed an extra $500,000, it can't go on your schedule A, but it can go someplace else. The someplace else would be, for example, if I put it into my schedule E, because I'm using it to buy rental property. Then I can use the income of the rental property and I can use the interest being paid as a separate expense, it's just going on a different tax form. The other route that you can go is, if I give that $500,000 and I loan it to a corporation and the corporation re-loans, in the words the corporation is going out loaning its money out and it's reimbursing my interest, then in all reality the loan is really to the corp, and I'm not getting any tax benefit but the corporation is reducing its income by reimbursing me the right to use basically my line of credit. This is no different than if you do this with your credit card. It's reimbursing you, so you make no money on it, but you don't pay tax on it, it such a fancy work around. That's number one. Next question, I hold rental property in a self directed IRA. I do tenant screening, manage the rental, hire vendors to do the repair work and I don't physically work on the house. Good, because you can't physically work on the house, you can do everything else, you can hire, do screening. I would actually have a property manager on it. All income expenses come and goes to the same self directed IRA account, hopefully that's with the custodian or you have an LLC, disregarded to the IRA. Somebody asked this, the IRA custodian sets up the LLC, you can't do it. You shouldn't be going out and doing it yourself, paying your money, you should actually have the IRA do it to keep it clean. Is it allowed? Yes, some people say, "If only I don't work on the house myself, that's okay," and they're correct. Some people say, even screening, collecting rent is not allowed, can you please clarify? You should not receive the money, the IRA should receive the money, you can direct you to the custodian though. You can even get the check and hand it to the custodian, forward it to the custodian, whatever, as long as what you're doing is not adding value to the property. That's the big no, no. Don't go get a paint brush and start painting the house because you're increasing the value to your personal efforts. Next question, my wife's previous employer stock options were exercised and we feel have peaked, cost basis 132, market value 280, if we cash in, what will be the tax consequences and how can we reduce the tax burden? We need to pull the trigger shortly. Aziz, this is you, there's two ways you can do this. First off, you're going to end up with long term capital gains, so it's not horrible. Secondly, there's something called an opportunity zone which just enacted at the end of the year and the just published out all these zones. If you reinvest the money in a opportunity zone, you defer to the tax. In the opportunity zones, there's tons of them. It's any neighborhood that is considered—that needs public support and there's a laundry list. I would actually encourage you to go Google, opportunity zone, tax and you'll find a big old list. But the communities in your area that are typically low to moderate income house. If you took your entire amount of increase, so let's say that we have $150,000 of taxable capital gains, you could buy $150,000 of opportunity zone properties and pay zero tax. Now, the question is, what happens when I sell? So there's holding periods and the minimum holding period, I believe, is you're going to be looking at five years, where then you're going to not have to pay tax on 15%, I'm going off of memory. So you'll have to excuse me if I'm not spot on, but it's 15% then it jumps up. At 10 years, the entire $150,000 is no longer taxable. And I believe that you're not going to be paying tax on the gain in the opportunity zone, it's kind of a two pronged, are you familiar with that one, Jeff? Jeff: Somewhat, I know that you replaced the old enterprise some number of years back. Toby: Something to look at, but would be it. The last way to avoid tax is give them, before you exercise it, is give that to your non-profit, if you have one and you would get a $280,000 deduction. And then the nonprofit can sell it zero tax. You'd get a monster tax and you could have these too, you could say, "Hey, I really need to offset a bunch of the tax, so I'm going to make a contribution," it doesn't matter what your basis is, it only matters, the fair market value of those assets and if you transferred let's say $140,000, half of it, let's see transferred $140,000 worth of stock, you would get $140,000 tax deduction and it can offset your income up to 60%. In either case, if you're pretty confident that we can mitigate or eliminate that tax bill if you wanted to. If you keep it out of state, somebody says, if you keep it as state for 36 months, can it be avoided? I am helping a friend with crowdfunding project and due to medical needs, we'll need a large sum, maybe $100 million what would his tax consequences be if he has no deductions? Does he have to pay tax on donated money? Fred, generally speaking, if you're getting these little gifts, as long as they're less than $15,000 there's no tax and when I say $15,000 that's per donor. So if I do a crowdfunding and everybody gives $100, there's no tax to the recipient. So go ahead and raise them a bunch of money. Jeff: Keep in mind when you're doing this crowdfunding, if you're contributing to a crowd funding, it is a gift, it's not a donation. Toby: And it's not a tax deductible donation. In 2017, I sold a rental house and took a $40,000 note. In 2017, I received $944 in interest but have not issued a 1099-INT. I did report the amount on my personal 2017. What should my next step be? Wait until 2019 or file now. So he's the one who holds the note, he was paid interest. What do you have to say? Jeff: This is kind of a darn if you do and darn if you don't. There is a penalty for not issuing the 1099. You did the right thing by reporting the amount of interest. However, there's a penalty for not following the 1099. There's a penalty for filing them late. Toby: What's the penalty like? Jeff: I think it's $50 or $75. I think it's $50 up to $99. Toby: So what you're saying is do it next year? Jeff: I didn’t hear anything. Toby: Hey do it next year unless they start digging in. I've had that, we actually went through a super audit here once and they went through every—they let you fix it. So I just wouldn't do it. I would just do it next year and say, "Hey, oops." How to aggregate all properties. What are the disadvantages to doing. You file an aggregation election, is it a form or you just check in the box? Jeff: It's an election. It prints out a form with your tax return. It says exactly what properties or investments you're aggregating together. The only real disadvantage is. Once you aggregated these properties, let's say you have two houses and one has significant passive losses. When you become a real estate professional, those passive losses gets stuck in there. Normally they get freed up when you sell that property but once you aggregator properties, it's all considered one property. So it doesn't free up those if you have a large losses tied up, it doesn't free them up until you get rid of all your aggregated properties. Toby: Cool. Nicely put. Are the purchase and sale of mortgage notes considered real estate for real estate professional status I'm assuming. Jeff: This is my gut feeling, I would say no. it's more of a lending, more of an investment in the notes. Toby: Depends on whether you're ending up with the properties. It depends on what your intent is and if your intent is just to buy and sell mortgage notes, then you're dealing with lending. In order to be real estate, it's really got to be focused in on the purchase and sale of real estate. Jeff: So we kind of run into the same thing with construction companies and such that they meet the test for certain things but not for other test. There are some input to it so real estate broker is kind of the same thing. Toby: Here's the thing, so this is Dean. Dean, if I am in your shoes, I am documenting the time I'm spending in real estate. so even though I may be going after a note, if the reason that you're going after the note is with the intent that possibly end up with that property and you do the research and you can back it up, then you add it into the real estate column as far as your time and you aggregate all your time. The only time this is going to come up is if somebody audits you in goes through all of your records that thoroughly which is rare that that happens. But let's say that it does, then you're the one who's tracking all of your expenses and your time. Then it would be up to the IRS to sit there and say, "Hey, that was actually for the mortgage." and so the old adage is pigs get fat, hogs get slaughtered. You don't take all of it but you aggregate that a little bit. Jeff: Can I bring up a pet peeve? I hear on the radio frequently about all these auditors that IRS has hired and they haven't had a real hiring since 2010. Toby: They're so toast right now. Jeff: The last big hiring they did most recently was to deal with Obamacare for that audit purposes. But really, they're dealing with almost a skeleton crew anymore. Toby: We just got proposed tax forms for 2018. We don't even know, we just had proposed regulations issued on the tax changes two weeks ago, three weeks ago. They're way behind the eight ball and sometimes we put ourselves in a disadvantage. Don't be crazy about it, but you can be pretty aggressive and especially if it's the truth. If what you're spending your time on is real estate, count it towards real estate. So if you're doing real estate investing part time, can you be considered a part time investor? Yeah, you'd be a part time investor but you wouldn't be a real estate professional. So the biggest important thing and this is for Darlene and Ken, is to document your time and if you go over 750 hours and it's more than you spend than anything else, then you're going to be a real estate professional. Otherwise, you're just an investor, unless you are buying properties to sell. So when you say investing, that means you're going to hold on to them, you're letting them depreciate a little bit but you get the cash flow. Does time spent lending money on real estate for real estate qualifiers and real estate professional. No investing, didn’t we just answer that one? It depends on your real intent of investing in the note. A lot of people are buying notes to end up with a real estate in which case then I'd say probably. Jeff: No, what if she's gap funding? Toby: If you're gap funding then I would say no, then you're lending. So you really have to take a look at the totality of the circumstances. I wish I could say yes or no. what we want is a yes and there's a way to get there. So it's making sure that you're documenting things to support your position. We could dig into that a little bit more, if you want to shoot us the email then let us dig into it. Then the next tax Tuesday, I can answer that one and Jeff can answer that one with a little bit of research behind it. Nexus question, "I'm a resident in California, I'm moving to Arizona. I plan to keep a single family rental in California. The California houses and the land trust is owned by Wyoming LLC, does California have the right to tax my pension income after I move in addition to my income in California rental." Shelly the answer is, it depends on where the rental was earned and whether you're taking out over a 10 year period then the answer is, no. and my guess is that you're going to be a big no. They will be able to tax technically the rental income that is being derived from California but for the most part, that's going to be zero. Jeff: A really important number to remember when you have a property in more than one state is 183. That's typically the number of days you need to spend in a state to be a resident in that state. Toby: "How do I get the 501(c)(3) tax exempt?" Marie, that’s the 1023 application. Yes, it's the 1023 application. So with a nonprofit, I always look at these things in threes, we file with the state which is a corporation. We document it to make sure there's no shareholders which is for private parties, and then we file with the feds and we're telling them we want to be an exempted organization and that exemption is done via 1023. So we go through that process. When we set them up, we set up about 3,000 of them successfully. "How do you create an LLC and an IRA?" Darlene and Ken, what you do is you have the IRA custodian internal contract with a company like us and we create the LLC, or we set up a 401K, roll the IRA into it and then we'd let you do it so you don't need a custodian. "Is this recorded and will a replay be sent out?" Robin, it's made available to anybody who's platinum and then I'm cutting out a bunch of the Q&As and will throw them all over the internet. The recording, yes we record them. Join platinum, it's fun. "If I sell a partial note to a family member from my QRP, is that disqualified?" it depends on the type of family members. When they're your kids, yes. If it's to a brother or sister, no. then you can do it. When you make a contribution and that's just the whole disqualified person argument we had earlier. So you can always ask again, ask the question specific to your situation, we'll give you a very specific answer. But just know that if you sell a partial note out of your QRP, it depends on the relationship of the family member. If it's lineal, you have a problem. Which means kids, parents, grandparents you have a problem. If it's horizontal, siblings, not a problem. If it's the spouses of the disqualified person, you're going to have a problem. "Investing in LLC for holding rental property, how does one avail to a 1031 exchange?" Here's how it works, so I'm not going to worry about this. The 1031 exchange, you have to have a 1031 exchange facilitator. The LLC has to buy the next property. So you sell one and buy one within 180 days and there's some other roles in there about when you identify it or you do a reverse exchange where you buy the replacement property then sell the other property within 180 days. But neither cases, in the name of the LLC, you don't have to do anything else. "I should be able to still qualify as an investor and still be active in real estate by investing more than 750 hours." yes, but in actually is a full time job. So if you have a full time job as a real estate professional, then you're good. But remember, your activity as a real estate investor has to exceed your activities of any other profit making activity. So if you work and you work 1,500 hours, even if you did 1400 hours as real estate, you are not a real estate professional, still below that 1,500. Investment in LLC for holding rental property, how does or somebody asked that. If you in invest funds to have an equity in a project, oh my god, this one's going to kill me, built by someone else, I'm trying to think what this is. So you're investing funds for a piece of an LLC in which you are passive and they are a builder, are you a dealer? So Judith, no, you are a passive investor in an active business, is what you are. I see what you're saying, what she's asking is, "Hey, I have Bob the builder come up to me and says, 'Hey, we're going to build this big apartment complex, we're going to develop and everything. You put in $100,000 everybody else puts on $100,000.'" You are passive. You are not considered the dealer. Here's a fun one, did you already read this one? Jeff: No, I haven’t read this one. Toby: Okay, I am planning to receive social security benefits at 62, and currently not employed. I do private lending to real estate investors through promissory notes. So I do receive interest income in the amount of $40,000 to $50,000. Will this affect my social security benefits? At what point to social security benefits are taxable? So Joe, the answer is that there are certain types of income that are exempt from calculations, social security, Jeff you know off the top of your head? Jeff: If you're receiving earned income and that's all social securities could ever know about, so we're talking about self employment income, W-2 wages, that's going to affect your social security benefits. Toby: But if you're just receiving interest income, is it going to affect it? Jeff: Well, here's the thing, if you're in the business of lending money, we would typically set you up as a business, either on schedule C or through an S-Corp or something. That interest you receive wouldn't be, interest income, it would be business income. You'd be able to deduct certain expenses from that income… Toby: We got to look at it, because usually you're going to want to be treated as active, in this particular case you're not going to outdo yourself. Jeff: The downside of this is, any money, any net income you have from this business of lending money is going to affect security until you're 65, or 67, full retirement age. Toby: Joe, the answer is, we may one isolated into its own taxable entity, so that it doesn't affect you. We may. Jeff: I kind of feel like this would be in a great place for an S-Corporation. It's not earning income flowing through to them. Toby: Would he have to take a salary? Jeff: Yeah there we go. Toby: I'm going to take a look. Joe, that's a great question, could you submit it to the webinars at Anderson Advisors, so we can research it. In that way we can hit it in two weeks, to get you a much more thoroughly research, because you're asking a very complicated question. That’s just not going to be at the top of our head. We're going to make sure that we don't step on a landmine. Jeff: So the answer's, maybe. Toby: My wife and I are the only shareholders and we both take a one third salary. No, you should take about one third of the net profit as salary, total between the owners. So greater than 2% shareholders or you and your spouse, so you could each take, I'll throw numbers out, let's say you made $100,000, you could each take up to $18,500. If you're under 50 and immediately dump it into a 401K and not pay any tax. So, "Hey we like that." We have a medical coding business, perfect, yeah, so that's when we want to take a look at. "This is so much fun, really appreciate it," I hope that's not sarcastic, Al. "I opened a couple of LLC, I'm going to use to purchase flipping, can I put them on hold until I do? Do I have to do tax returns?" It all depends on what you're doing with those, the answer is, yes you could put them on ice. "Thanks for the answer on UBIT." Diane, no problem. See we actually do answer questions here. "What are the legal benefits of incorporating in Puerto Rico, if any compared to Nevada?" If you live there, I think they give you 4% tax rate, but you actually have to reside there. There's legal benefits, not really any, other than the tax benefits and the fact of the matter is Puerto Rico has Spanish law, which means they could probably take your company from you. But you can still go down there and Jeff… Jeff: Well, I mean, there are certain industries that have great tax benefits pharmaceutical companies was always a big one. Some of those old laws have sunsetted but might be a good opportunity. Toby: Cool, look at all these questions. All right, some people are saying nice things, great. I like nice things better than, "You guys are jerks." In 2017, I was self employed under my LLC, I have not filed my taxes yet and not considering retirement. Would I still be able to do that? What is best options?" Casey, are you under—self employment under my LLC. So it depends on whether—it was an S-Corp. Did you file an extension because you would be able to do a retirement plan either a sub-IRA or if you already had the 401K then you can make a contribution from the company for it. It would either be a 401A or a 401K. or sub-IRA, I think those are going to be your... Jeff: And if you do extension, you have 11 days to get it done. Toby: Yeah, you have 11 days. Casey, get off your butt. All right, Brian wants advice with the start up pre revenue, he is offering 10% stock, "Not sure I want ownership that subject to capital calls, expectation, potential—is it better to take an offshore [inaudible 01:06:53] until there's more value in the company?" It really depends, so Clark, nice to see you. Awesome. I know Clark's brother very well, studs, nice family. All right, friends, if I was going to have a piece, the whole thing is, if I'm putting money into an endeavor, it's going to be, "What am I going to get out?" It would really depend on the agreement, I don't want to be subject to having to put more money in, nor do I want my interest necessarily being diluted by somebody who is. So one of the one of the ways you can do it, is sometimes do it is a convertible note where you loan the money, so you know you can at least get it back, but it's convertible into equity at the fair market value at that time. You guys can actually agreed to this ahead of time. So that if you decide you want to contribute it, you see they're doing what you want but then you convert it into equity. Otherwise it just remains a note that they pay you on. Clark, that's probably the route I would go. Jeff: But the assumption here is, this is a C-Corporation he's talking about. Toby: I don't even care… Jeff: Well if it's an S-Corporation that we wouldn’t be able to have all these secondary notes and stuff. Toby: If it's an S, I could so convert it. Jeff: Could you? Toby: Yep. Jeff: As long as it converts into the same… Toby: Yep. The risk is I don't want to have a convertible debt to anything other than an individual that would qualify for S.. Jeff: Okay. Toby: But I don't see S-Corps raising money this way. It's almost always C-Corps with partnerships. So the ones that I've been personally involved in, we did three levels of financing this exact way with Vegas Tax fund. That's the little Tony Hseih group and they dumped a bunch of money to a company called Role Tech. You can look them up online, because we exited that wanted with the sale to Brunswick. In a way they did all their money was purely—that was a C-Corp, but it was purely through convertible notes. All right, "What are the best tools you can recommend for tracking time mileage and expenses for real estate investors? My desire to be paperless and get everything out…" People use Taxbot for mileage, it's mileage IQ, MileIQ, I think it's the one that I use, but if you're tracking time, it's just using—sometimes is just using your calendar or spreadsheet. Let's see, "Is full time realtor, a real estate professional?" Chances are, you're going to aggregate and all that. "I understand and agree." I'm not sure I understand that. "I executed a 1031 exchange where trust all the owned property, sold it, and took title of the up leg property in the trust using 1031 exchange. But now I want to transfer up leg property into an LLC." Diane, there is no time restriction that you have to hold it as long as you are the one and still the end beneficiary. If you extend loan through an LLC owned by Roth IRA, they want to transfer, sell the remainder, but then season it out to a lower interest rate. Can Roth continue to receive the full payment from the borrower and the relay the portion?" Yes, as lines is non-convertible, same as you do in an S-Corp. "Is the answer the same best self administer S 401K? So what they're asking is," If you extend a loan through—we're just going to call it the Roth IRA, because the LLC looks right into it from a tax standpoint. And then you sell the remainder of that then season notes. So you start collecting and then you sell the note because it's doing really well and you say, "Hey does anybody want to pay me for this?" I know a guy that that's what he does. He puts the notes together and he sells his notes out and so he can get the money to go to another one and he aggregates them altogether, they call it flying in flocks. The lenders flock together and together they do a loan and he sells his portion. Yeah, you could sell it and then you can continue to receive it and keep a portion of it. the only issue you have is if it's a convertible note then you wouldn’t want to do a convertible note because boom, that Roth IRA depending on the type of entity if it's an S-Corp you'd kill the S-Corp's status of it. How do you put an LLC on hold? You get quite literally do nothing with it or you just pay the state and then you file a non activity return. You say it's not doing anything. So you're allowed to do that or you just do nothing. Which is what I tend to do. It just depends on your state. If there's not much penalty then I just kind of sit it and then two years later I might reactivate it. Will real estate holding LLC taxes partnership qualify for the 20% passed through deduction? Yes, it will. Here's the deal, as long as it's not triple net property. What she's asking is, "Hey, I have a whole bunch of LLCs and they all receive rental income and there's a net income amount." let's say it comes through with $50,000 there's something called a 199A deduction that was enacted by the 2017 tax cut and jobs act. And it gives you a 20% deduction off that amount or 20% of your taxable income whichever one is less/ but if you earn over a certain amount so for individuals it's over, $100,575 if it's a married couple it's $315,000 which is going to make your head hurt I'm going to suffer memory here. Then you scale up and then you have a new test it's 50% of the W2 income that's being paid on that particular busine

Featured on 100s of podcasts and radio shows, Damion Lupo is a financial mentor to the elite. He is also a best selling author in personal finance.  He's a four-time college dropout, who actually got thrown out of one of the schools for opening a bookstore in his dorm room, putting the official store into bankruptcy.  Damion became a multimillionaire by age 25 and then lost his $20 Million empire by age 30. Five years later he was back, reinvented and recharged on a mission. His mission is to Free a Million People from Financial Bondgage.   Some of the topics discussed: What is QRP and why it's beneficial to have What is UDFI and what that means to real estate investing How to avoid UBIT (Unrelated Business Income Tax) and why Investing in QRP vs. IRA or 401K What things can you or can't do with a QRP funds Being responsible with your investments and retirement funds Rolling over from an IRA to a QRP and what the process is like and some hurdles you might encounter What is an EQRP and how it compares to a QRP How your funds are dispersed or transferred in case of death or other circumstances Connect with Damion via his website www.theqrpbook.com.  Plus, get a free report that explains QRPs by texting QRP to 72000. If you have any deals you'd like for us to help you analyze, send us an email and we'll help you analyze it.

#208: With a $55,000 annual contribution limit, the QRP gives you checkbook control of your IRA. You can invest your retirement money in nearly anything. Retirees are suffering with 401(k)s and IRAs. QRPs provide a better way. Damion Lupo tells us how. QRPs avoid the UBIT tax. Self-directed IRAs do not. Learn more from Total Control Financial by texting “QRP” (ALL CAPS) to 72000. QRP stands for Qualified Retirement Plan. You can invest in nearly anything with your retirement funds, get a $50,000 line of credit, and creditor protection. With Self-Directed IRAs, you might have to pay tax on leveraged gains; QRPs are exempt. With QRPs, you can invest in residential property, metals, cryptocurrency, options, tax liens, notes, vacant land, mobile home parks, more. You can set up a QRP with less red tape than a Self-Directed IRA. __________________ Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Listen to this week’s show and learn: 02:51 Pensions replaced with Defined Contribution Plans. Retirees suffer. 06:25 Gold and silver. 10:52 I make a simple break down of 401(k)s and IRAs. 13:58 Damion reminds you: don’t plan to be poor. 15:26 UBIT is ugly. QRPs avoid it. 17:34 QRP’s $50,000 line of credit. 21:55 What can you invest QRPs in? Nearly anything. 26:35 Creditor protection. 28:26 $55K annual contribution limit for single; $110K for married couples. 31:31 Custodian, trustee. 34:34 Less red tape than a SDIRA. 39:17 Get Rich Education perspective on the QRP. Resources mentioned: Text message QRP (ALL CAPS) to 72000 New Orleans Investment Conference Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey RE: NoradaRealEstate.com QRP: TotalControlFinancial.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book

YouTube Link: https://youtu.be/vjMF0jYqpHg? sub_confirmation 1 Article Link: Text “simple” to 314-665-1767 to download the Hui Google Drive files and the 2018 Rental Property Analyzer For a free electronic version of my bestselling book in 12+ categories text the word ""ebook"" to 587-317-6099. Please help the show by leaving a review: http://getpodcast.reviews/id/1118795347 Join the Hui Deal Pipeline Club! SimplePassiveCashflow.com/club Pardon the grammar - I'm an Engeneer, Enginere, Engenere... I'm good with math! ________Here are the Show Notes________ SimplePassiveCashflow.com/qrp I have been having a lot of calls with listeners having exhausted their liquidity and have money in their 401K or IRA's still in Wall Street Investments. One of those ways to get the money out is via a QRP or Solo401K. Today's guest Damion Lupo with discussing - SimplePassiveCashflow.com/qrp to get a free copy of his book I cashed out my 401k because I figured I was going to pay the taxes