Podcast appearances and mentions of Russell Gray

Get my new book: https://bronsonequity.com/fireyourselfDownload my new special report - How to Use Inflation to Your Advantage - www.bronsonequity.com/inflationJoin Bronson Hill on the Mailbox Money Show for a replay of this high-octane webinar, "Don't Miss the Precious Metals Boom," packed with insider strategies to capitalize on surging gold and silver prices amid global uncertainty. As host of monthly investor forums and author of Fire Yourself, Bronson moderates a powerhouse panel dissecting the rally's drivers—from central bank hoarding and Fed rate cuts to dollar weaponization and industrial demand—while weighing physical metals against crypto's volatility.Featuring:Brien Lundin, veteran editor of The Gold Newsletter (55+ years strong) and producer of the world's oldest investment conference, the New Orleans Investment Conference.Russell Gray, founder of Raising Capitalists Foundation and advocate for sound money, sharing arbitrage tactics like metals-backed equity lines.David Morgan, publisher of The Morgan Report, delivering contrarian takes on market tops, silver acceleration, and deflation risks.Dana Samuelson, precious metals expert at American Gold Exchange, breaking down dealer insights on ratios, IRAs, and 10-20% upside potential.Whether stacking bullion or blending with equities, don't sleep on this boom—tune in for actionable intel to hedge inflation and seize the next leg up.TIMESTAMPS2:28 - Episode Overview3:04 - Panelist Introductions: Dana, Brien, David, Russell3:58 - Gold Rally: Real or Topping Out?4:17 - Russell: Gold as Liquid Wealth Store vs. Trading6:02 - Brien: Gold as Insurance, Debt Endgame Bull7:34 - Fed Cuts: Bullish for Gold in September8:38 - Poll: Reasons for Gold Breakout9:03 - Dana: Central Banks, Tariffs Driving $400 Rise11:25 - David: Gold 3200-3500 Range, Silver 90/10 Acceleration15:13 - Crypto vs. Physical Metals Debate16:15 - David: Crypto as Gold/Silver Diversion, Miners Losing17:49 - Russell: Circle of Safety - Gold, Bitcoin, Treasuries23:07 - Brien: Bitcoin Speculation, Potential Phoenix Rise25:44 - Dana: Bitcoin Volatile, CBDC Control Threat27:23 - Gold-Silver Ratio at 88:1 Discussion28:13 - Dana: Favor Silver, Ratio Arbitrage29:19 - Brien: Hold Both, Silver to $40 Soon30:15 - David: Swap to Silver/Platinum at Extremes33:02 - Bronson: Metals Benefits - Hedge, Value, Liquidity33:40 - Russell: Metals as Equity/Savings, Arbitrage Debt37:58 - $100K Allocation Rapid Fire38:28 - Brien: 60-70% Silver, Add Copper39:21 - David: Physical First, Then Mining Equities40:36 - Russell: All Gold, Borrow to Buy Silver42:22 - Dana: 30% Gold, 50% Silver, 20% Plat/Pall43:37 - Q&A: Industrial Demand on Silver Prices46:01 - Q&A: Metals in Self-Directed IRA46:48 - Q&A: BRICS Restructuring LBMA/COMEX50:30 - Rapid Fire: US Return to Metal Standard Odds52:40 - Panelist Offers and ClosingJoint the Wealth Forum: bronsonequity.com/wealthConnect with the Guests:Brien Lundin:Gold Newsletter: goldnewsletter.comWebsite: https://neworleansconference.com/Linkedin: https://www.linkedin.com/in/brien-lundin-b37a4819/X: : https://twitter.com/GoldNewsletterRussell Gray:Investor Mentoring Club: rsvp@investormentoringclub.comLinkedin: https://www.linkedin.com/in/russellwgray/Email: follow@russellgray.comDana Samuelson:Website: www.amergold.comPrecious Metals Starting Guide (Email): info@amergold.comYoutube: https://www.youtube.com/c/AmericanGoldExchangeAustinLinkedin: https://www.linkedin.com/in/dana-samuelson-64793056/ David Morgan:Website: https://www.themorganreport.com/Linkedin: https://www.linkedin.com/in/thedavidmorgan/Facebook: https://www.facebook.com/TheMorganReport#PreciousMetalsBoom#GoldRally#SilverAcceleration#DeDollarization#CryptoVsGold#InvestorStrategies#SoundMoney

In this engaging conversation, Russell Gray shares his journey as a Main Street capitalist and emphasizes the importance of financial literacy, particularly for children. He discusses the historical context of economic freedom as envisioned by the Founding Fathers and contrasts Main Street capitalism with Wall Street practices. Russell advocates for direct investment in local communities and highlights the role of syndication in empowering Main Street investors. He introduces the Main Street Media Network as a platform for sharing ideas and fostering community among entrepreneurs. The discussion culminates in Russell's mission to promote purpose-driven capitalism and the establishment of the Fellowship of Christian Capitalists, aiming to support and encourage Christian entrepreneurs in their endeavors. Ultimate Show Notes: 00:00Introduction to Capital Hacking 02:27Meet Russell Gray: A Journey Through Capitalism 05:31Teaching Financial Literacy to the Next Generation 09:12Understanding Freedom: Financial vs. Political 13:00The Importance of Main Street Investing 20:40Building the Main Street Media Network 25:41Creating a Community of Purpose-Driven Capitalists 30:32The Role of Entrepreneurs in Society 35:14The Mission of Pray.com and Beyond 41:05Conclusion and Call to Action Connect with Russel: Home - Russell Gray follow@RussellGray.com Learn More About Accountable Equity:  Visit Us: http://www.accountableequity.com/   Access eBook: https://accountableequity.com/case-study/#register  Turn your unique talent into capital and achieve the life you were destined to live. Join our community!We believe that Capital is more than just Cash. In fact, Human Capital always comes first before the accumulation of Financial Capital. We explore the best, most efficient, high-integrity ways of raising capital (Human & Financial). We want our listeners to use their personal human capital to empower the growth of their financial capital. Together we are stronger. LinkedinFacebookInstagramApple PodcastSpotify

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

                          Listen in as Erin and Nathan discuss: The life-altering moment that changed everything: a training ride that ended in a 60-mph collision, a coma, and the long road of learning to walk, talk, and live again. How adversity can become fuel instead of dead weight — and why "tomorrow is never promised" reframes how we use our time today. The difference between knowledge and wisdom, and why mentorship + proximity to high-level thinkers compresses your learning curve. A powerful redefinition of wealth: true wealth = ownership of your time, built through aligned assets, income streams, and purpose-driven stewardship. Why systems + delegation create scale — and how building teams is the bridge from solopreneur to entrepreneur to capitalist.                                               About Nathan Barkocy is a real estate developer, entrepreneur, and the emerging voice behind the True Wealth movement. He is the co-author—alongside financial legend Sharon Lechter—of the upcoming book Old Wealth, New Wealth, True Wealth, set to publish on January 23, 2026, exactly ten years after a life-altering cycling accident that reshaped his purpose and mission. From rebuilding his life after being declared dead on the scene, Nathan has gone on to build multiple successful ventures across real estate development, restoration, wellness, and education. He is the founder of Testament Real Estate, Phoenix Real Estate Restoration, and the True Wealth Academy, as well as a growing media brand centered around generational wealth, personal growth, and time freedom. Guided and mentored by Sharon Lechter, Nathan blends timeless wealth principles with a modern, purpose-driven approach that resonates with the next generation of entrepreneurs and investors. His work emphasizes the pillars of financial literacy, intentional leadership, and building a legacy rooted in impact. Nathan is currently leading several major development projects—including the Galveston Skyline mixed-use district in Fort Worth and a master-planned resort and casino village in Colorado—and his message has gained national traction, earning endorsements from leaders like Ken McElroy, Russell Gray, Marcin Drozdz, and Mark Victor Hansen. Through his book, speaking engagements, and the True Wealth community, Nathan is inspiring others to rise above adversity, unlock their God-given potential, and build wealth that lasts across generations. How to Connect With Nathan Website: NathanBarkocy.com LinkedIn: https://www.linkedin.com/in/nathanbarkocy Facebook: https://www.facebook.com/p/Nathan-Barkocy-100080039299725/ Instagram: https://www.instagram.com/nathanbarkocy YouTube: https://youtube.com/@nathanbarkocy Recommended Resources  https://nathanbarkocy.com/book-presale Old Wealth, New Wealth, True Wealth

We all love winners. We love hearing about the big wins and the perfect track records. It feels good. It feels safe. It instills us with a sense of trust. But I've been in business long enough to know that virtually all individuals who are long-term winners have had profound moments of failure from which they learned invaluable lessons. Those are the people I really want to hear from. They have the kind of knowledge we all need as we navigate through life. It's called wisdom. Surgeons have a saying: “If you've never had a complication, you haven't done enough surgery.” In my surgeon days, I had a handful of complications. Let me tell you—they are no fun. You stay up at night replaying things in your mind, trying to figure out how you could have done things differently—how you could have had a better outcome. Even when unavoidable, those complications teach you something you'll never get from textbooks. It's been no different for me when it comes to business and investing. But I take comfort in knowing that even the greatest investors of all time had their moments of failure and rose from the ashes stronger and wiser. Warren Buffett. Ray Dalio. Every big winner has a story of failure. And while it may be cliché to say that we learn best from mistakes, I truly believe it. The good news is that those mistakes don't have to be our own. Learning from other people's mistakes can be just as effective. This week's episode of the Wealth Formula Podcast is with Russell Gray—a guy many of you already know from his podcasting and radio career. Russ lived through 2008 up close. He took a beating, and he talks openly about what went wrong. But that period also changed the way he sees the world—in a good way. It changed how he thinks about risk, leverage, and what actually matters when things stop going up. That mindset is a big reason he's been successful since then. It's a conversation worth your time. Transcript Disclaimer: This transcript was generated by AI and may not be 100% accurate. If you notice any errors or corrections, please email us at phil@wealthformula.com.  If you let the debt run, at some point you fall into a debt trap where the interest on the outstanding debt consumes all of the available discretionary income, and then you’re borrowing just to service the debt. Welcome everybody. This is Buck Joffrey with the Wealth Formula Podcast coming to you from Montecito, California. Before we begin today, I wanna remind you there’s website associated with this. Podcast called wealthformula.com. It’s where you will go if you would like to, uh, become more, uh, ingrained with the community, including getting on some of our lists such as the Accredit Investor Club. Of course, it is a new year and there are new deal flows coming through. Lots of opportunities that you won’t see anywhere else if you are a, an accredit investor, which means you. Make at least $200,000 per year for the last couple years with a reasonable expectation of doing so in the future. That’s 300,000 if you’re filing jointly or you have a million dollars of net worth outside of your personal residence. If you, uh, meet those criteria, you are an accredited investor. Congratulations. You don’t have to apply for anything, whatever, but you do need to go to wealthformula.com. Sign up for the Accredited Investor Club, get onboarded. And all you do at that point is look at deal flow, and if nothing else, you’ll learn something. So check it out. And who doesn’t want to be part of a club? Now let’s talk, uh, a little bit about today’s show. You know, um, we all love winners, right? We love hearing about big wins, the perfect track record. It feels good. It feels safe, gives us a sense of trust. But the thing is, I’ve been in business long enough to know that virtually all individuals who are, what you would call long-term winners, have had profound moments of failure from which they learned, um, invaluable lessons. So those are the people that I really like to hear from. You know, they have the kind of knowledge we all need that as we navigate through all of life, and it’s called wisdom. Um, surgeons, as you know, I’m an ex surgeon. Have a saying, if you’ve never had a complication, you haven’t done enough surgery. Uh, in my surgery days, I certainly, you know, had a handful of complications just like anyone else who did a lot of surgery. And, and lemme tell you, there, there are no fun, right? So you stay up at night replying things in your mind, trying to figure out how you could have done things differently, how you could have had a better outcome. And sometimes you realize that those mistakes were unavoidable, but. You still learn something from them. And in these cases, you always learn something that you’re not gonna get from the textbooks, just from reading something. And you know what, it’s been no different for me when it comes to business and, and investing, but I, I take comfort in the fact, uh, that even the greatest investors of all time had their moments of failure and arose from the ashes stronger and wiser. All you have to do is look up stories of Warren Buffet and Ray Dalio. And Ray Dalio basically lost everything at one point, uh, because he, you know, he had a macro prediction that went completely south. But listen, uh, the, the point I’m trying to make here is that every big winner, every big winner I know of as a story of failure. And while it may be cliche to say, you know what we learned best from our mistakes, I, I truly believe that. But the good news is that those mistakes don’t have to be our own, right? So you can learn from other people’s mistakes as well, and that can be just as effective. Uh, so this week’s episode of Well, formula Podcast is featuring a guy that you may know. His name is Russell Gray. Russ, uh, has been around a long time, uh, in the podcasting world. And radio. You know, he talks a lot. He’s talked many times to me at least about living through 2008. And you know what that was like, the beating he took and, you know, what went wrong? Uh, you know, it’s, it’s something that he talks about because, you know, he’s a successful guy and that period in time changed. You know, the way he sees the world, the way in which he behaves in that world. How he thinks about things like risk and leverage and you know, what actually matters when things stop going up. Uh, it’s a mindset thing and it’s important. Um, and we also obviously talk about other things as well, such as, uh, Russ’s current take on the economy. Uh, so anyway, it’s a, a good conversation and it’s one that you’re gonna wanna listen to, and we’ll have that for you right after these messages. Wealth formula banking is an ingenious concept powered by whole life insurance, but instead of acting just as a safety net, the strategy supercharges your investments. First, you create a personal financial reservoir that grows at a compounding interest rate much higher than any bank savings account. As your money accumulates, you borrow from your own. Bank to invest in other cash flowing investments. Here’s the key. Even though you’ve borrowed money at a simple interest rate, your insurance company keeps paying. You compound interest on that money even though you’ve borrowed it at result, you make money in two places at the same time. That’s why your investments get supercharged. This isn’t a new technique, it’s a refined strategy used by some of the wealthiest families in history, and it uses century old rock solid insurance companies as its back. Turbo charge your investments. Visit www.wealthformulabanking.com. Again, that’s wealth formula banking.com. Welcome back to Show Everyone. Today my guest on Wealth Formula podcast is Russell Gray. He’s a second generation financial strategist and, uh, you may know him from being a, the former co-host of the Real Estate Guy Radio Show, which is one of the longest running, uh, uh, radio shows of its time, uh, in the United States. He’s, he’s a founder of. Raising Capitalist project, which is an initiative focused on helping aspiring investors and entrepreneurs how to better understand how wealth is actually created and how uh, economic systems really work. Uh, he’s best known for his emphasis on real assets, cash flow, economic cycles, and preserving wealth and what he views as an increasingly fragile financial system. Welcome, Ross. How are you? Good buck, happy to be here. And, uh, proud of your success on your show. I remember way back at the beginning you were like, Hey, I wanna start a podcast. Yeah. Yep. You’ve done a great job. Yeah, it was an idea. I was like, here’s the idea. Start a podcast, build a community, all that kind of stuff. But it’s interesting. Uh, well, and let’s talk about what’s going on now. You’ve spent decades teaching people about, you know, real assets and cash flow. But lately your writings feel more focused on systems and and macro forces. So what’s changed? Has something finally become too big to ignore? Well, I think there’s two things you know personally, uh, most people who have heard of me or followed me know that 2008 wasn’t kind to me. I was in the mortgage business. I was very leveraged into real estate all over the place. Had my businesses for cash flow, had the real estate for equity growth. Believed that real estate was hyper resilient and gonna be the beneficiary of inflation. Didn’t understand the dependency on credit markets in both my business and my portfolio. And so that was a big mess, not doing, uh, a real SWOT analysis and understanding. And the third part of that, that was tough, is that I operated the business primarily on credit lines as well. So I had virtually no cash. And so when the credit markets seized up. Canceled my income, it canceled my credit lines and it evaporated my equity. And now all I had was negative cash flow on debt, on real estate. I couldn’t control. And so I looked at that and I said to myself, you know, I’m a pretty smart guy. I. Pride myself on paying attention. So obviously I’m not paying attention to the right thing. So I became obsessed with the macro, uh, picture and, and the financial system, which, you know, to me it’s, it’s the macro economy is what’s going on with, uh. Geopolitics and the energy and, you know, even policy, uh, that affects, uh, how well money can flow through the system. Both monetary policy from the Federal Reserve and fiscal policy from the government now today in the Trump administration trade policy. And so I began to pay attention to all those things, but from the standpoint of not how it was gonna affect the stock market, but how it was gonna affect the bond market and interest rates and the availability of credit, and how it was gonna affect Main Street. Directly and specifically now in terms of jobs and job creation are real wages. And so when I started really looking at all that, um, I, I, I realized that there were some things happening that were gonna be really good, and there were also some things that we needed to pay attention to. And these things move very slowly. So in 2010. I saw that coming outta the financial crisis, the Chinese were very upset with the United States about how much the Fed Balance sheet was expanding, and they were concerned about their very large investment in US dollar denominated. Bonds, and so they began creating bilateral trade agreements with Russia and many other countries to where they could begin this large process of de Dollarizing. Well, that was the first time I’d seen that movie, because it was the same thing that the Europeans did after they saw the Nixon default. Right? They began working on the Euro, which took ’em from 71, 72 when they started, maybe 74 when they started, but it took ’em till 99 to get it done. But you know, once they got it in place, over time, the Euro, the Euro has taken over 20% of global trade. You know, that’s market share from the US dollar. And so I saw this BrickX thing beginning to form. Uh, and then I saw the other thing on the macro that I thought was gonna be really good was in the jobs act, something you’ve benefited from as a syndicator, we. I wrote that report, new law breaks Wall Street Monopoly. And so, uh, even though I, I can’t tell you I was a big fan of Barack Obama, but he signed that legislation that happened on his watch. And I think it was fantastic because now it allowed Main Street syndicators, main Street Capital raisers to advertise for accredited investors and began to really, uh, level that playing field and open up Main Street, uh, to invest directly in Main Street. And so I met you in the syndication program that we put together with the real estate guys to coach real estate investors on how to become capital raisers to, to capitalize on that trend. So that’s, you know, kind of how I kind of became doing what I’m doing. And then when I decided, uh, just about 20 months ago to depart the real estate guys, I wanted to take some of the things that I originally set out to do when I first met Robert Helms way back in the day. And, you know, as relationships go, you know, he has his interest in the things that he wants to do, and I had my interest in things I came to do. And for a long time we were aligned well enough to continue to work together. But it got to a point where, for me, I, I wanted to go off in a different direction, and part of that was driven. By the, the death of my late wife. Uh, you had me on the show right after that happened to me, and I was going through this like, who am I? Why am I here? What am I supposed to do next? What do I really want to get done before I die? And so all of those things kind of informed my personal decisions to, to make a switch. And then of course, what’s going on in the macro. Um, what I saw with Trump 1.0, what I saw in the Biden administration and those policies, and then what I thought would happen in Trump 2.0. And I did a presentation on this at the best ever conference in March of 2025, right after he’d been inaugurated. And, and so, uh, that, that’s kind of has me where I feel like there’s some real opportunity coming. Uh, there’s also some things we need to be aware of on Main Street. Yeah. So you’re bullish on Main Street in general, but you’ve been pretty cautious about the broader financial system. So, uh, what are the things that you’re worried about? Well, I, I think if you understand the way the financial system works, uh, it has a shelf life and that. It’s because it’s, it’s a system that is, depends upon ever increasing debt. Um, people say, I wanna pay the debt off, but if they, if they really understood the system, at least the way I think I understand it, uh, and I’m not alone in this, so it’s not something I just figured out on my own. But, um, you know. I, I don’t want to sit here and pretend like I’m the world’s foremost expert, but the way I understand the way the system works is that it, it requires ever increasing debt, and if we were to pay the debt off, it would collapse the system. So I think you waste a lot of time and energy and from a policy perspective, trying to argue about doing that. And I think that’s why it’s never, ever, no matter what administration, what politician, what mix of congress, what. Pressure there is everywhere globally. The system, the central banking system, the way it works globally, is designed to create ever increasing debt. So the, the flip side of that then is to let the debt run. And if you let the debt run, at some point you fall into a debt trap where the interest on the outstanding debt consumes all of the available discretionary income. And then you’re borrowing just to service the debt. Yeah, that’s about $1 trillion right now, by the way. Which is. Which is, uh, about the, the, the defense, uh, budget. Well, and I think that the bigger thing is when you look at, at the interest on the debt and mandatory spending, there’s virtually no room left after that. So if you’ve got, you’ve got the mandatory spending and you’ve got, um, debt service, you, you have very little room. So it’s not. Feasible either for two reasons. One is there’s just not enough discretionary room to be able to cut expenses enough to, to ever manage the debt. Number two, as I previously mentioned, if we were ever to effectively try to pay down the debt in any appreciable way, it would crash the the system. So the, the way I look at it is it’s, it’s, it’s got to be replaced. There’s going to be a great reset. I think the World Economic Forum was trying to set that up for the world, and they had an agenda. I’m, I’m not particularly fond of. Um, there’s been talk about creating a central bank digital currency, which I think is what, you know, the Federal Reserve and the, what I all call the wizards, uh, or the powers of B would prefer. Uh, but I think if you care about privacy and, and, you know, individual sovereignty, uh, and, and just personal freedom, um, I have a lot of concerns about a central bank digital currency. Um, I think the popularity of Bitcoin, uh, if it was, you know, and who knows what the. True origins were, but let’s just take it at face value. I think a lot of the people, at least that were the early adopters before it had the big price run up, was just a way to escape, uh, the system before it failed. And so you’ve got that. And then you’ve got, again, as I mentioned, the bricks and this global effort to de dollarize, which was I think really kicked off. After the great financial crisis and the massive expansion of the Fed’s balance sheet. And then I think picked up a little steam when we froze Russian assets and people began to see that the US might use the dollar and the dollar system, uh, for political instead of being neutral. And I think that picked up some steam. And, and so there’s, there’s both a geopolitical drive to. Uh, come up with a new system. There is, I think we’re at the end of a shelf life that some type of a new system is gonna have to be, uh, created. Uh, and, and then you look at what Donald Trump is doing and what he’s espousing. You know, let’s get rid of income taxes. Let’s get back to pulling in, uh, revenue from tariffs the way the country was originally founded. Uh, he’s talked about eliminating the IRS and going with an ERS, an external revenue service. There’s people that think that he might beat. Wanting to try to get back on some form of sound money, you know, coming out of, Hey, let’s audit the Fed, let’s audit the gold. I mean, let’s audit the gold. And, um, so, you know, we, you, you never know what what’s really gonna happen, but, but I think what we have to pay attention to are the signs that the system is beginning to break down. And one of those signs that I pay a lot of attention to is monetary, metals, gold and silver. I make a distinction between precious metals, which would also include platinum and palladium, and of course they’re strategic metals, but I just focus on monetary metals, which would be gold and silver, and gold and silver. We’re telling you that people would prefer to be the, the, the safe ha haven asset is no longer us treasuries, but, um, but, but gold and central banks have been driving a lot of it. This isn’t the retail market driving it yet. It, it’s really central banks have been accumulating. And so those are the ultimate insiders when it comes to currency. And if the insiders in the currency markets are repositioning into gold, uh, I’d, I’d call that a clue. Yeah, absolutely. Um. Yeah. You recently commented on the public criticism, president Donald Trump made toward, uh, uh, Peter Schiff. What stood out to you about that exchange? Maybe give us some background people. Not everybody knows who Peter is and, and, uh. And all that. So, yeah. Well, I mean, as you know, I’ve known Peter for 12 or 13 years and, uh, I had read his father’s work way back in the day. He is a very famous in the tax protestor world as somebody who just believed that income taxes were unconstitutional. And he resisted that and ended up going to jail for, died in jail as a matter of fact. And so that was, uh, I think sad. Um. But, but to me it felt like a little bit of being a political prisoner, but be that as it may, that’s how I got to know Peter. And so Peter is a guy that comes from the Austrian School of Economics and he believes in sound money. He believes in gold. He does not like Bitcoin. I’ve sat on panels the last two years with Peter, uh, in between him and Larry Lepard. And you know, Larry is a, a former gold guy. He’s still not opposed to gold, but he’s a hardcore sound money guy. But he likes Bitcoin. Peter hates Bitcoin and they get into it, and I usually sit in between ’em and try to keep things calm. Well, you know, so Peter ended up going on Fox and Friends, uh, I think on whatever it was, Friday the eighth I think it was, or whatever, whatever day that was. And he, he criticized Donald Trump’s spending. And, um, budget deficits and said that it would lead to inflation, and that’s a hot button for Trump. And so Trump, yeah. Uh, responded to him, uh, I think like four 30 in the morning on Saturday morning and called Peter, uh, a. Jerk and a total loser. Well, actually I saw it before Peter did, and so I took a screenshot and I texted it to him. I said, Hey, have you seen this? You know, maybe I’ll press is good press. And I think to a degree, maybe it has been me from, I understand Peter ended up on Tucker Carlson’s show as a result of that. So, but I made a video right after that because I, you know, there was a time when. I’m friends with Peter Schiff and I’m friends with Robert Kiyosaki. As you know, I, we introduced you to both those guys and, and at one point they didn’t like each other very much. They got into it ’cause, you know, and, and so we introduced ’em to each other and found that they had more in common than they, they didn’t. And I, I think that that would be true. Not that I’m in a position to introduce Peter to, to Donald Trump, but I think the way Peter is looking at it is true. Um, but there’s context and I think the context is super important. Now I’ve been studying Donald Trump as a businessman way before he was a presidential candidate or a politician, you know, before he was a polarizing guy, a pariah for some people. He, he was just this real estate guy. He’s good at marketing, he’s a real estate guy, and as you know. We got to know his longtime attorney, George Ross. And so I’ve had a chance to have conversations about what it was like working with Donald Trump, the real estate guy, and when he became a politician, I asked George, is he a crazy man? Does he shoot from the hip? And you know, I got a lot of reassurances that he is a sober sound. Methodical, self-disciplined guy and, and I think he uses the eroticism to keep people off balance as a negotiating tactic. And he writes about that in the art of the deal. So the context that I think that people need to have, and I’m not here to defend Donald Trump, the man. I’m not here to defend Donald Trump, the politician, but I look at the policies and what I think he’s up to in the context of realizing that we have a system that is fundamentally flawed and has to be remodeled. So to use a real estate, uh, metaphor, it would be like we have a hotel building that is very tired. It’s at the end of its life, it’s got to be remodeled, and so you can’t. Completely shut it down because it’s an operating business, so it’s gotta operate during the remodel. And so you begin to, um, reposition things and. You, you, you’re not gonna run optimally, so you’re gonna run some deficits while you’re doing the remodel. You’re gonna go into debt because you got a lot of CapEx to do, and during that period of time, your debt and deficits are gonna be a problem. But real estate guys look at debt and deficits not as a permanent condition. I think Peter is saying, Hey, you’re just running up debt and deficits. Well, in the short term he is. Honestly, I don’t think Trump is concerned about that. I think he’s focused on getting this remodel done, and part of that remodel was showed up in the last jobs report, right? We lost jobs to a degree, but they were government jobs, and what we got was a lot of gains in private sector jobs. Scott descent, his treasury secretary, has come out and overtly said, we are an administration for Main Street, not for Wall Street. So if you’re going to de financialize this economy and turn it back into a productive economy. You’re going to have to have policies that are gonna stimulate Main Street, and that’s, that’s the, the, the new units that you’ve rehabbed in your hotel that you wanna move people into. At the same time, you gotta move them outta the old units, which is people making money, trading claims on wealth instead of producing real goods and services, which is the financial ice economy. So it’s not about banking, it’s not about stocks, it’s not about Wall Street. You know, you need the stock market to stay up. But really what you need to do is you need to create production. And, and, and I think that’s fundamental. I think he understands we’re never gonna pay the debt off by cutting. We’ve got to keep the system running until we can get to some form of sound money. We’re actually paying the debt off as realistic, and then we have to earn so much money that the debt relative to our earnings shrinks. So it’s not paying down the debt, it’s paying down the percentage of GDP by growing GDP. And the presentation I did at best ever in March of 2025 was me explaining why I thought. His policies, were going to allow him to increase velocity and increase wages by cutting taxes, interest regulation, transportation costs, and, and again, that was six weeks into administration. That was theory. I’m gonna do a follow up in March of this year to say, okay, looking back when I gave the speech a year ago, what’s transpired, but I can already tell you a lot of the stuff that I thought he would do. He’s done. And I think that’s muting some of the inflation that his spending and deficits to Peter’s point are causing. And that’s why when this last CPI report came out, it wasn’t as ugly as everybody thought it would be. And, and this is when you don’t look at, when you look at it in the mono, you just look at one thing and Peter’s very fixated on this quantity of money theory. Then the expectation is that you print a bunch of money, you run a bunch of deficits, you’re gonna get inflation. And it’s just a. Equals B or A leads to B. But there are other nuances and I think Trump is looking at more like a real estate developer, which makes sense. ’cause that’s his background. Yeah, yeah, absolutely. It’s, I mean, and then the other just point to, to make there is that there is probably, um, now inflation’s a tricky thing, right? Like on the one hand you don’t want this riding up, but on the other hand, it actually helps with that debt. You’re, you’re basically eroding the debt by letting inflation ride a little bit higher at the same time. And I think the Trump administration knows that it’s a tricky thing to balance, but the goal is to, you know, get GDP pumping at, you know, four or 5%, but it’s gotta be real production buck. And that’s the difference, right? The old way of dealing with the debt was inflation. And, and I think people think that he’s using the old formula, but I don’t think he is. Well, I think it’s, I think, I think it’s definitely geared towards increasing real GDP, but I think in the process there’s probably, they probably care less a little bit. Of inflation riding up a little bit in the meantime. ’cause you’re still gonna have, I think he thinks he can mute it. I think he can mute it with lower taxes, lower interest expense, lower energy costs. And the energy is the economy. And from day one, that was the first policy. He’s, he’s aggressively gone after lowering energy costs because that has a, a, a ripple through, it just affects every area of the economy. And then the regulations in, in the last cabinet meeting. It was reported, the way I understood it, that for every regulation his administration passes, they’ve eliminated 48. So it’s actually, he’s removing the friction. And I think the bigger thing is, and I, and I was on a panel at Limitless, uh, this last summer, and TaRL, Yarborough was moderating the panel, asked the panelists what we were looking at that maybe other people weren’t looking at that. Um. You know, is, is a signal about maybe the direction it was. We, I, I can’t remember. This was a prediction panel and what I said was trade policy because everybody in finance spends all their time looking at the flow of money and trying to get in front of the flow of money. And we’re so used to the money coming from the Fed or coming from the treasury. So they’re gonna come from monetary policy or fiscal policy. And that’s what Peter’s doing. He’s looking at the Fed and he is looking at the treasury. And so what I’m looking at is not just the tariff income, which is relatively minor, but I’m looking at the trade deals, and those are published at the White House and there’s a couple trillion dollars of money that’s FDI, foreign Direct Investments coming right into Main Street. And it’s gonna build infrastructure. It’s gonna build factories. It’s good. And they tell you where it’s gonna be because they, they came back with the opportunity zones, which I thought they would do. Makes sense. It’s the way he thinks. And then taking those opportunity zones, the governors can say where in their state they want that money to go. Well, people on Wall Street don’t think geography ’cause they operate in a commodity world that trades on global exchanges. But real estate people. Geography matters a lot. So if I’m a Main Street person, I live on Main Street and I’m looking for Main Street opportunities, I wanna look where that money is going to be flowing in geographically. And then there may be opportunities in real estate or small businesses in those economies, and you can see it coming, but nobody talks about it. So I created Main Street Capitalist as a show to begin to talk about it. I still do the investor mentoring club, which is, you know. A premium thing where we get together every month and we talk about these things. And the point is, is that if you understand, I think what he’s doing, then you can, you can begin to paddle into position. And I think, again, I am really bullish if he loses inflation. If he loses to inflation, he’s cooked. He knows it. I think that that even the suggestion that Peter made that he was losing to inflation is what flared him up. And so I wasn’t trying to necessarily defend. Peter and I wasn’t trying to defend Trump, I was just trying to reconcile that it is possible that both guys could be right at the same time from their perspective. And so I, you know, I, I had one guy take exception because he felt like I was defending Trump, but for the most part, I got positive feedback on the video. I, I, I, you saw it. So you tell me. Did it make sense? Yeah, yeah, yeah. Absolutely. So when you look at today’s environment, everything going on, where do you think investors are most vulnerable? Um, I, I think that if you are very dependent upon, um, healthy credit markets, we could have a disruption. And that’s what happened to me. If Trump loses the inflation battle even for a little while, little be reflected in interest rates. And the challenge is right now that he is asked the Fed to quote unquote lower rates, but the Fed actually doesn’t like. Set rates, what they do is they set a target and then they manipulate markets to achieve those rates. And if, if people believe the fed, there’s a little bit of front running. So what’ll happen is the Fed will come out and go, oh, we’re gonna lower rates, which means bond prices are gonna go up. So they’re like, that’s great, let’s go buy a bunch of bonds, which drives rates down. So the Fed just by talking. Begins to move the market and then they hope that later on the Fed will buy those bonds from them at a profit to push rates down. Does that make sense? So, so when the last two times the Fed has raised rates in their target, the 10 year has responded in the opposite direction. Which means that the market is like not buying in, and the Fed is gonna have to step in. And when the Fed steps in, they do it by printing money out out of thin air. Now, the concern about that is that when they print the money out of thin air. If they’re replacing bonds on their own balance sheet, that’s kind of a circle and it doesn’t leak out into the economy. If they’re buying new issuance from the the treasury, then that money is gonna work its way through the government to to to main street. Now, the Trump administration can prevent some of that by keeping the money in the Treasury, for example, uh, Trump 1.0 left. The Biden administration with, I think over a trillion dollars in, in the treasury checking account, and Janet Yellen put that into the economy right away during the lockdowns, which immediately created extreme inflation because you muted production at the same time you goose. Uh. Purchasing power, you know? So anybody with like three ounces of economic understanding could have told you that that inflation was gonna come, it was gonna come hard, it was gonna come fast, and it was gonna be stickier than than you thought. ’cause once you let that money out in the economy, it’s out. It’s out and the only way to mute it is either to suck it back, which is very, very difficult, or to outproduce it, and it’s very hard to produce anything when everything’s in lockdown. So I think that, you know, those days are behind us. I think the policies that we’re embracing now are more. Pro productivity. And I think that even if the Fed does have to step in, as long as that money doesn’t leak out into the economy, and part of it is the treasury being able to throttle some of that, and the money that does go into the economy doesn’t go into stimulus, but goes into CapEx and infrastructure, that’ll actually, uh, create. Production. Then I think that, you know, this, this game plan that I think they’re trying to execute has a chance. And so I, I’m, I’m watching for it. And of course, to answer your question, what do we have to worry about that it doesn’t work? Right? If it doesn’t work, then inflation will show up. Interest rates will rise, credit markets will crash, it will take real estate values with it. And the hedge is really gonna be, what I’ve always talked about is gold. I started talking back in 2018 when we were the zero bound with interest rates. Hey, there’s only one way interest rates can go and that’s up. And if they go up fast, then that’s gonna crash bonds. So it would be smart, and that’s gonna take real estate equity with it. So it’d be smart when you have real estate equity and low rates to pull some of that equity out and move it into gold. And I called that my precious equity strategy. If I have a video I did at the Vancouver Resource Investment Conference in January of 2022, explaining that when you could still really execute on that, and I’m not saying that you couldn’t do it today, but it’s harder, but the people who did it back then, I mean, you know, they’ve, they’ve seen their gold almost triple. And at the same time, they were able to lock in interest rates that are, you know, a half what they are today. So when you see those mega trends and you can begin, and that’s the stuff I didn’t know how to do in 2006, 2007. I didn’t understand any of this stuff. The, the, you know, losing everything in 2008 forced me to become a hardcore student and then try to apply that to Main Street strategy. And so I think gold and real estate and debt, they all work really well together depending on where you are in the cycle. Do you think that Main Street investors may actually have some advantages in periods like this? Yes, a ton because I think what’s gonna happen is if we have a, um, a, a, a restructure of the financial system into something more responsible, which I think is either gonna be forced upon us or it’s gonna be done by design, and I hope we do it by design. But when that happens, then the days of just buying low and selling high and riding the inflation wave that goes away. And so now it’s gonna be very, very important to understand how to invest for. Productivity. So I call it, you know, buy low sell high trading as an acronym, B-L-S-H-T you. You can sound it out for yourself phonetically. And then the other one is poo, which is productivity of others. And I think that if people focus on investing in the productivity of others, which is what Main street investors, especially real estate investors, focus on, I think cash flow, real profits on small businesses, not speculating on. Uh, exit price or a company that’s gonna take a company public, everybody trying to tap into this giant flood of money that gets pre created from thin air in the banking system and in Wall Street. If, if, if people on Main Street will just start investing. Kind of what Kenny McElroy was doing going through 2008, just focusing on sound assets and good markets with good fundamentals. That cash flow and, and are run by good managers, whether it’s a business, an apartment building, a mobile home park, a self storage, residential assisted living doesn’t really matter. Invest in real businesses that produce real profits where you’re not overpaying for that production of income and especially where there’s some upside. Not to flipping out of the stock, but to actually growing the market share and growing the income. That’s what investing really should be. Wall Street has perverted it into just placing bets and riding a wave and trying to figure out where the money is gonna flow from the Treasury or for from Fed stimulus. And I think Main Street is gonna pick up on the new game sooner. And the good news is if you get good at playing that game, even if the system stays the same, you’re probably gonna do better off anyway. When you talk about buying, buying or investing into productive businesses, I mean, what, what’s the difference in your mind between investing in a private business versus investing in a, you know, a publicly traded business that’s run off, you know, dividends? Yeah, so I, I, I think that it could be okay if the dividend yield makes sense, but anytime you have a publicly traded security, it’s a highly liquid market, which means it’s gonna be volatile and the stocks become chips in the casinos where professional traders are just gambling all day long. And some of that gambling can create an impact on the stock, and it doesn’t matter to you if you’ve only bought it for production of income. Um. And so, uh, you know, I, I don’t think it’s bad. I’ve, you know, Peter’s always been an advocate of, uh, dividend paying stocks, and I think if you’re gonna be in the stock market, that’s what you want to do. I think the opportunity in a private placement in a small business is the opportunity not to have to pay the high multiples because it’s not a perfect market. It’s, it’s the same reason there’s so much more opportunity in real estate. If real estate could trade on an electronic exchange where. You know, millions of buyers could find it, and you could have perfect price discovery. It’s very difficult to find a deal, right? It’s very difficult. But we, if you buy a private business, you know there’s gonna be considerations. You, you deal with a, a owner. Who cares about his customers, who cares about his team, maybe would be willing to carry back the way you would if you were buying a, a, a piece of property from somebody that cares about their neighbors or whatever. I mean, there’s, there’s, there’s a lot more humanity in it. There’s a lot more room for negotiation in it. And a lot of times there’s a lot more room to have control. So, you know, one of the adages with real estate that real estate investors like is, I’m gonna buy an asset, one that I understand, two that I can control. And so when you buy a stock, like a dividend paying stock, you, you might understand the business, you may not understand completely the. Uh, market dynamics that drive the stock price. But as long as the dividends are there, that can be okay, but you don’t have any control. When you actually go buy a small business, you have a, a degree of control. Now, if you’re a passive investor buying into a syndication, then you still have a little bit more, um. Relationship, you have a little bit more insight. You maybe have a voice. You may know the people that are making the decision and running the company personally. So it’s the same thing. You know, you Buck is a syndicator. When you go do a deal, your investors know you. They have a personal relationship with you. Go buy stuff in the stock market and mutual fund managers and investor. You don’t have a relationship with that fund manager and I think that’s worth something if you have a voice right. So we’ve, we’re talking a little bit about credit markets, um, volatility, you know, interest rates. Are they gonna go down like, you know, Donald Trump would like to see, and you know, we’ve got a new fed share coming, all that kind of thing. How should investors be thinking about leverage and risk right now? I, I think the adage with real estate, uh, I mean, sorry, with leverage is always the same, is, um, you know, manage cash flow. I, if, if you use leverage to speculate, that could be a real problem. And whether you did it. Do it for real estate like I did by having very thin or negative cash flow and making that up someplace else and believing that somehow, you know, rents or appreciation are gonna do it. Or buying a non-income producing asset with borrowed funds hoping it’s gonna go higher. I think that would be dangerous, but I think if you fundamentally use debt as a tool. Based on cash flows and you use conservative cash flows, you know, so the debt service coverage ratio, you know, if you have $10,000 a month going out in debt service, make sure you have at least, you know, $12,000 a month coming in on income or above. Then that’s how you begin to build resiliency into your portfolio. And the other thing is don’t borrow long to invest short, right? So your duration matters a lot. We were talking about this before we hit the record button, and I think what happens is people. Uh, make a mistake when they try to operate like a bank. ’cause banks lend short and invest long. And the only reason they get away with it is because they have the Federal Reserve Bank system backstopping them. But you don’t have that as an individual, so you better to do the opposite. Um, if you can match the durations, that’s perfect, right? ’cause then you know what your interest expense is for the, for the duration of the investment. And once you lock in the spread, then you just have the counterparty risk of the, whoever is responsible for creating that income stream that’s gonna service the debt you use to control the asset. And then it just comes down to underwriting and then recourse. And if you feel comfortable with the underwriting and you feel comfortable with the recourse, and you’ve got spread and you’ve locked in a, a duration. Um, that, that is compatible, then that can be a, a, a fairly safe way to use debt. And if interest rates work against you, then you’re okay. And if interest rates work for you, you might be able to refinance your debt and actually increase your spread, but you don’t need it to happen to be successful. Let’s talk a little bit more about what you’re doing right now. So in the past year, you’ve launched, um, several new initiatives. You had masterminds via platforms. Tell us a little bit about this and, and a little bit more what, what you’re trying to accomplish. Well, you know, after losing my wife, um, you, you go through this. Period of time of like figuring out, okay, life is short. What do I want to get done before I left die myself. And so, um, after thinking about that, I went back to really what I came to do when I first met Robert Helms and got involved in the real estate guys. And so I just kinda went back to home base and. Then the other thing is now I’ve got 17 grandchildren, and so I’m thinking a lot less like a father, more like a, a grandfather, a founding father. And, um, and so I’m thinking about what the world is gonna be like in 40, 50, 60 years, and what can I do to plant a seed that will make that world better for my grandchildren? And so I, I did a couple things. One is, um, after I left the real estate guys, we were going through a merger with Ken McElroy, George Gammon and Jason Hartman to create, um, a mastermind group, which we did. And I, I was CEO of that for the. The year during the merger. And that took up some time. And the second thing I decided to do, uh, ironically, it was after a conversation I had with Charlie Kirk. I had a conversation with Charlie Kirk. I said, Hey, I’ve got this idea to help, uh, K through 12 get involved in, in capitalism by starting businesses or working with businesses. Their parents start, and I explained to him the model. He goes, I love it. I want to help you. And so that encouraged me. And then I had a follow up meeting in January of 20. 24 with Mark Victor Hansen, and he really encouraged me. And so with the strength of those two endorsements, I go, you know, I’m gonna do this. And so, uh, I left the real estate guys in, um. March, late March of 2024, and in the summer of 2024, I, I launched the Raising Capitalists Foundation, and people can learn more about that by going to raising capitalists plural.org. And I, I literally launched it at Freedom Fest on July 13th, 2024 and five minutes before I took the stage, Donald Trump got shot. Always remember where I was and how distracting it was, but I did record that presentation and it’s on the website, and so it explains the model. But in, in short, it’s pairing, um, or it’s, it’s putting parents who are in what Kiyosaki, uh, rich Dad would call the E-Class employees. And, uh. Put them under a mentorship program with experienced entrepreneurs and investors to help them start a business, a side hustle. They need the money and they need a mentor. And so then they, um, it can create a situation where their children can come to work for them in the business. And today, information Society, you know, there’s a lot of things kids can do where they learn real life skills, um, working with their parents. So that’s what the Raising Capitalist Foundation is all about. Then I launched two shows. Uh, in 2025, uh, one is I literally just launched like a week ago, and that’s. That Donald Trump video was really the first one that I put out, the Donald Trump versus Peter Schiff video on YouTube. I haven’t even started the podcast side of it. Um, and in on September 27th, uh, on pray.com, I started, uh, another show that, that one’s called the Main Street Capitalist. So if you go to YouTube and look at the Main Street capitalist, you’ll, you can find me there. And then the other one I created was the Christian capitalist. And I kind of went back to, you know, my, my core roots of realizing when I started looking at. Where the country was at, John Adams said that, um. Our Constitution was designed for a moral and religious people and is really wholly inadequate for any other, and so I thought, you know what? I’m I, I’m going to do that because my experience as a, as a Christian businessman is that I find that sometimes the stuff I get in church is more consumer oriented, and it doesn’t, it’s more employee oriented. I, I don’t. And, and then the other part of that is I created a, a ministry called Fellowship, a Christian capitalist, which is really about helping people put purpose into their business and then, you know, express their faith. Love your neighbor. Through their business. And so I’ve got all these different initiatives going and then I created the Main Street Media Network because I wanting to reach youth. I hired a YouTube coach and I said, look, I want to create content to encourage youth. He goes, that’s great. You can’t do it. You’re too old, he said, so what you need to do is find young people you can mentor and teach them the things that you’ve learned and let them teach it in their own words and they’ll reach their generation better than you. So with Main Street Media Network, I’m I, I’ve got. Two guys that I’m apprenticing right now, but I’m gonna be adding a lot more. Um, one, one young man is 20 years old, the other one is 26 years old. And, uh, I just came back from the Turning Point USA event where we had a broadcast booth and they were conducting interviews and I did the New Orleans Investment Conference. And so these guys are sitting down with Peter Schiff, Robert Kiyosaki, Mike Maloney, Ken McElroy, you know, you, you know what that did for you, buck with your show. You know, you, you met all these people through us and then you. We’re able to build upon that and create a very credible show. So I’m doing that for these guys that are in their twenties with the idea that they will be able to reach a generation of people. Uh, I call it putting Boomer Wisdom in Gen Z mounts. I mean, they get to process it and it gets to be their own. And I’m helping them build financial podcasts that actually make the money and is the foundation of, in this case, they’re both capital raisers of their capital raising business. I got all these different things going, but I’m doing it through leaders, so I’m not trying to do all things myself. Yeah, yeah. Um, but I’m building out an ecosystem to accomplish all these goals and so far so good. It’s a lot. Sounds working like a young man, man, man. I’ll tell you that. I know, I know. Wow. I I thought you were gonna slow down after you. No, I’ve actually, I put my, I put, I put my foot on the gas. I, I’ve probably never worked, uh, harder. Um, but I, I think I’m working smart, you know, so I’m hiring coaches and I’m bringing in, um, leaders and going through all that EOS and organizing to scale stuff. Sounds good. Well, always a pleasure, Russ. Um, make sure not to be a stranger to have you on again, um, you know, in a few months and figure out where you’re going with all this stuff. All the new things that you’ve accomplished, but it’s, uh, it’s great to see you. Well, happy to be here, proud of you. Uh, keep up the good work and keep educating people. Thank you. You make a lot of money, but are still worried about retirement. Maybe you didn’t start earning until your thirties. Now you’re trying to catch up. Meanwhile, you’ve got a mortgage, a private school to pay for, and you feel like you’re getting further and further behind. Now, good news, if you need to catch up on retirement, check out a program put out by some of the oldest and most prestigious life insurance companies in the world. It’s called Wealth Accelerator, and it can help you amplify your returns quickly, protect your money from creditors, and provide financial protection to your family if something happens to you. The concepts here are used by some of the wealthiest families in the world, and there’s no reason why they can’t be used by you. Check it out for yourself by going to wealthformulabanking.com. Welcome back to the show everyone. Hope you enjoyed it. As always, Russ, uh, is, uh, you know, he’s, he’s got a lot of wisdom. He is the guy you really wanna listen to. And I would encourage you to follow his work anyway. Uh, just pivoting back, you know, to where this economy is and all that. I think for me personally, it’s about allocating capital in a market that is a, uh, is certainly losing value in its dollars. And, um, and I think that we’re gonna continue to see that. Speaking of that, make sure if you haven’t, as I mentioned before, sign up for the Accredited Investor Club. Go to wealthformula.com, go to investor club, as we have plenty of those types of things that are hedging against inflation, um, saving taxes in terms of tax mitigation strategies, that kind of thing. Check it out. That’s it for me This week on Well Formula Podcast. This is Buck Joffrey signing off. If you wanna learn more, you can now get free access to our in-depth personal finance course featuring industry leaders like Tom Wheel Wright and Ken McElroy. Visit wealthformularoadmap.com.

*Previously aired episode* Pascal Wagner interviews Russell Gray, the long-time co-host of the Real Estate Guys Radio Show and a seasoned LP investor. Russell dives deep into the critical role macroeconomics plays in investment success, sharing his personal crash-and-burn story from the 2008 mortgage crisis and the economic warning signs he missed. He breaks down the shift from Wall Street to Main Street capitalism, the flaws of financialized markets, and the need to value investments based on real income. He also outlines practical strategies LPs can use to evaluate deals through macro, demographic, and geographic lenses, and advocates for a return to real asset investing and productive capitalism. Russell Gray Founder and Host Based in: Phoenix, Arizona Say hi to them at ⁠www.RussellGray.com⁠ ⁠www.linkedin.com/in/russellwgray/⁠ ⁠x.com/RussWGray⁠ Visit bestevercrypto.com today to get started and earn up to $2,500 in bonus crypto. Try QUO for free PLUS get 20% off your first 6 months when you go to quo.com/BESTEVER Join us at Best Ever Conference 2026! Find more info at: https://www.besteverconference.com/  Join the Best Ever Community  The Best Ever Community is live and growing - and we want serious commercial real estate investors like you inside. It's free to join, but you must apply and meet the criteria.  Connect with top operators, LPs, GPs, and more, get real insights, and be part of a curated network built to help you grow. Apply now at⁠ ⁠⁠⁠www.bestevercommunity.com⁠⁠ Podcast production done by⁠ ⁠Outlier Audio⁠ Learn more about your ad choices. Visit megaphone.fm/adchoices

Keith discusses the rising cost of the American dream, now estimated at $5 million, due to inflation and housing prices.  He highlights the affordable housing crisis, with more Americans living in RVs and homelessness up 18% since last year.  The NAR's "Best Week" report highlights the benefits of buying during this time, including lower prices and more favorable terms. Resources: IMPORTANT: GRE mobile app listeners - Switch to listening to the podcast on the  Apple Podcasts or Spotify app, as the dedicated GRE mobile app will be discontinued at the end of the month. Check out the free video course on real estate investing at getricheducation.com/course. Show Notes: GetRichEducation.com/575 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com GRE Free Investment Coaching: GREinvestmentcoach.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  For predictable 10-12% quarterly returns, visit FreedomFamilyInvestments.com/GRE or text  1-937-795-8989 to speak with a freedom coach Will you please leave a review for the show? I'd be grateful. Search “how to leave an Apple Podcasts review”  For advertising inquiries, visit: GetRichEducation.com/ad Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript:   Keith Weinhold  0:01   welcome to GRE. I'm your host. Keith Weinhold, the American dream now costs $5 million learn just what that will mean for you. The beauty of 50 year mortgages, then after 11 years, I share the most depressing thing I've ever said on the show today on get rich education.   Keith Weinhold  0:26   You know, most people think they're playing it safe with their liquid money, but they're actually losing savings accounts and bonds don't keep up when true inflation eats six or 7% of your wealth. Every single year, I invest my liquidity with FFI freedom family investments in their flagship program. Why fixed 10 to 12% returns have been predictable and paid quarterly. There's real world security backed by needs based real estate like affordable housing, Senior Living and health care. Ask about the freedom flagship program when you speak to a freedom coach there, and that's just one part of their family of products, they've got workshops, webinars and seminars designed to educate you before you invest. Start with as little as 25k and finally, get your money working as hard as you do. Get started at Freedom family investments.com/gre or send a text now it's 1-937-795-8989, yep, text their freedom coach, directly. Again, 1-937-795-8989,   Corey Coates  1:39   you're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education.   Keith Weinhold  1:55   Welcome to GRE from Norwich, Connecticut to Norwich, North Dakota, and across 188 nations worldwide, you're listening to get rich education. I'm Keith Weinhold. You probably know me by now, but if you're new, I am an active member of the Forbes real estate Council. You can see my work in the USA Today. And of Paramount import, I am an active real estate investor. We're talking about America's top shaved mammal on a microphone here, but suffice it to say, this mammal has at least shaved just how can this slack jawed mammal persist in this environment? Well, I don't know, but I've been doing it here for more than 11 years now. More on that later. This is episode 575, and each episode's release is a bigger deal than releasing the Epstein files. Today is no exception, although today's show release will get fewer people in trouble than the release of the Epstein files. Speaking of people in trouble. It is the middle class. It's the average American and the average Canadian too, because it now costs $5 million to fuel the American dream. But yet, at the same time, hordes of people are now going the other direction, and they're getting poorer. The affordable housing crisis that we've talked about here seems to probably still have not reached its crescendo. Or perhaps, if you know music, it's the opposite a diminuendo. Things are getting to a low point. How bad is it? Getting well priced out of a permanent home. More and more Americans are living full time on RVs, not like nice, fancy RVs either. Beaters. 486,000 Americans are now estimated to live in RVs because they are out of options. And the more soul crushing part of this is that that number has more than doubled just since 2021 I've got two minutes of astonishing audio footage of this to share with you shortly about the RV living homelessness is up 18% Since last year, that figure is sourced by HUD. HUD has the best stat set on homelessness, and that's a problem that's increasingly visible in your own city, more likely than not. And you know, I have personally gotten into more than just surface level chats casually with food servers and baristas, just these quick chats with them. And you know what they divulge to me, that they're living in their car. Yeah, I'm not probing and asking about that sort of thing, but they just share that with me, yeah, food servers and baristas that I just met. They will often tell me that they're living in their car within five minutes of chatting with them, and when they do that, by the way, it also makes me wonder if they're trying to get me to feel bad for them, and they're freely telling me that just to get a tip from me. Well, today, mobile homes are even being coveted. I mean living in a trailer park that is affordable housing. We covered that on last week's show now the real estate company Redfin and Ipsos, they conducted a survey of more than 4000 US homeowners and renters, and they asked respondents about the struggle to afford housing. And it was astounding to learn that to string together a life where they have stable housing, how people are doing all these things, they're delaying having children, they're getting rid of their pets, and some are going through the discomfort of living with an ex spouse just to have affordable housing, as far as what is now almost half a million Americans living full time on RVs and growing since they can't afford a home. NBC covered this, and it is sad. Let's listen into just how squalid the living conditions are, quickly profiling two people as this reporter goes on their tiny RVs. I mean, as you listen to this, okay, keep reminding yourself, keep telling yourself this is America today. And as you'll see, this isn't even in a high cost part of the nation that we're about to profile here again, tell yourself this is America today. Well, this NBC field reporter gets shown the insides of two different RV units by two separate owners, each living by themselves, first a man and then a woman. This is about two minutes in length    Speaker 1  6:53   for Gus Francis. This is home a 20 year old camper he bought for $5,000 parked in an RV lot in Graysville, Tennessee, just north of Chattanooga. I got all my rosaries for protection everywhere. Books, books, books. now retired, he worked for decades as a commercial diver and hoped to live closer to his widowed mother, but when he sought a more conventional home, I just can't see how people with their normal job making 15 bucks an hour can afford an apartment without multiple roommates. Meals are made in the microwave, the stove unused for fear of a gas leak. Right next door is Debbie Williams. She sold her house in Kentucky to be closer to her grandchildren, but housing prices near Chattanooga increased by almost 50% since 2020 apartments are like about 1200 a month, but then you got your utilities to pay. This is permanent, plus it include is like 550 a month includes electric water, saving over everything. It includes everything. Debbie works nights, helping adults with disabilities, and says she likes her setup, even if the exercise bike doesn't fit inside. Okay? I like my shower. It's really nice. And then my bedroom, Debbie and Gus now among the nearly half a million people in the US living in RVs full time. I sometimes thought, Man, if I could have saved more money in the past. But what it was is, I don't blame myself, either, because I raised four kids with no child support, despite the tight quarters, plenty of room to build a community that matters. Ellison Barber, NBC News, Graysville, Tennessee   Keith Weinhold  8:46   gosh, cramped and modest conditions there again. Tell yourself this is America today, and see, here's the thing. From all outward signs, these two people profile. They're not substance abusers. They're not criminals that can't get a job. These are American workers that have been productive people throughout their lives. The first guy, Gus said he worked for decades as a commercial diver, and that part of Tennessee, it's not a place in the nation where the cost of living is exorbitant, either the crux of the problem here is not just the wave of inflation that started in 2021 the essence of it is the fact that inflation has outpaced wage growth. Will you ever get to having a $5 million net worth? Because that's what it takes to live the American dream today. Now, a while back, I told you how, if you amass $5 million really that's the number, that's the threshold where you could probably stop working and just invest such that you could live off it forever. But inflation. Changes that and it keeps upping that number. Well, since then, Investopedia recently came up with this $5 million price tag that's just for living the American dream in today's dollars. Let's look at what that really means, and then we'll add up the spending categories. This is really interesting. All right, the definition of the American dream. What that means is owning a home, raising two kids, retiring comfortably, and maybe throwing in an annual vacation or two. So a nice life, for sure, but nothing extravagant and okay, yes, there is this other angle of like, Money cannot buy the best things in life, and that's true. There's a lot to be said for that, but this is not a relationships in a dating show, okay? So that's why I'm covering the financial angle here, and later today, I'll tell you how much the typical American makes throughout their lifetime, which is much less than 5 million bucks. But to get to that exact $5 million total, which is the least that you now need in net worth, the estimated lifetime costs of eight milestones most often associated with a dream were added up by Investopedia. And now, of course, everyone's dream is different, and housing costs differ nationally. But, I mean, this is pretty reasonable. Here they are. This is how much it takes for each of them today. And I'm doing some rounding retirement, over $1.6 million that's what it takes now. Healthcare, 414k this is all spent over the course of your lifetime, a wedding 38k And I hope that is wedding singular, not weddings plural, owning a home, 957k raising two children and paying for college that costs. 876k and then owning a new car, that is another 900k Yeah, that sounds like a lot, but that will include costs of financing and insurance and depreciation on cars throughout your life, and then a yearly vacation is 180k throughout your life, and pets, 39k All Right. There it is. That is the $5 million total for the American dream. And again, that is only in today's dollars. Inflation will, of course, make all of these future costs run up. All right, housing is really the biggest part of the dream. I mean, second to retirement anyway, all right. Again, the lifetime cost of housing, like I said, is 957k just a year ago, it was 930k okay, well, the national median list price of a single family home is about 430k I guess that makes sense. Most people live in multiple homes throughout their lives. Well, the price per square foot is up 50% just since 2019 that is what is pricing people out. That is what is making people become your renter instead of a homeowner. Well, this $5 million required for the dream, that is why more people are homeless or more people are living in RVs. This means that the demand for the product that you're providing to the marketplace affordable housing, that demand is considerable, and that demand is durable, and the median lifetime earnings for one American with a bachelor's degree is only $2.8 million. All right, so that's just over half as much as it takes to live the dream. But here's what's appalling. Are you ready? Here we go. This could be the most depressing and concerning stat you've heard on this show, maybe one of the most depressing and concerning in your entire life when you really think this through. All right, now, what do you think of as sort of a model for someone that is stable? How about both married and a homeowner? I mean, yeah, they're two big markers, married and home ownership that is foundational stuff when your kids grow up to be adults, if they become married in a homeowner. I mean, come on, who would be disappointed with that? That would probably make you feel proud and fulfilled. I mean, the future of the nation that is children and stable household formation material, right there. Well, by age 30, how many people do you think are married in a homeowner today, and how has that changed over time? What do you think this is the percent of 30 year olds who are both married and homeowners in the US? Right back in 1950 it was 52%.  today Okay, it is just a quarter of that. Only 13% of American 30 year olds are married homeowners today. Gosh, is that appalling? Or what? I mean, it doesn't exactly give you hope for the future, since Owning a home is a key pillar of the American dream, then the best thing that our local, state and federal lawmakers can do is to make it easier to build new housing. That is one of the most depressing stats I gave in 11 years of doing the show, probably the most depressing another thing we can do is not protest or block new development, no nimbyism.    Keith Weinhold  15:45   Now, earlier this year, the White House announced that they are considering declaring a national housing emergency. In fact, you saw me put a link to that in the section of our newsletter that we call the five, though we haven't seen a national housing emergency declared yet. If we do it all, the motivation behind it is largely to make housing affordable. One piece that's been floated out there is the introduction of a 50 year mortgage so that way mortgage payments are spread out and made lower than they are with the most popular mortgage in America today, by far, the 30 year fixed rate mortgage. Now, I wouldn't say that a 50 year mortgage is eminent and is about to happen. We can't say that, but it could be creeping closer. I mean, a 40 year mortgage that is already more of a thing. You've got 40 year HUD loans and 40 year DSCR loans both already here for residential property. We do know that buyers buy property more so based on a payment than they do the overall price of the property. Now look, I'll tell you if I could somehow magically snap my fingers and convert all of my 30 year mortgage loans over to 50 year loans. Oh, I sure would. It would lower my payment and increase my cash flow. Yes, my debt would hang around longer and well, we're right back to, you guessed it, financially free beats debt free. Let's run that comparison on a 300k loan at 6% interest, a 30 year mortgage payment, that is 1800 bucks a month, but on a 50 year loan that would be just 1580 Yeah, $1,800 versus 1580 1580 Well, that is going to boost your cash flow by $220 a month on that property, just by going from a 30 year to a 50 Year at the same interest rate. So maybe not as much of a difference as you thought, but probably worth doing, at least in the mortgage world debt free. I mean that concept of debt free that makes most people, in exchange for that debt free condition, grind and toil and work overtime and lose family time and eat dirt for decades because inflation and all these other forces work against them. And yes, this is just with mortgage debt that I'm talking about here. Of course, some debt is bad, like unsecured, high interest rate credit cards or doing a buy now, pay later, plan on a pizza that you split into four payments. That's ridiculous. And those are the type of debts you've also got to pay yourself. That's not what we're talking about here. In fact, it gets even worse for the mortgage debt free person. That extra $220 you're paying by having a 30 year loan instead of a 50 year loan, that would mean you're accumulating more dollars in home, which are illiquid. And again, 50 year loans don't exist yet, but understanding this concept and this trade off helps you be a better investor. Look, a debt free person can still be broke in the short term if they have a meager income, and they can be broke in the long term if they are not leveraging assets and debt. Being debt free, that is like bragging that you quit the gym so that you'll never pull a muscle again. I mean, you're safe for now, but you're going to be weaker in the long run. Let's use a different example. Let's just run a different set of numbers. Let's say you've got a 400k mortgage at three and a half percent interest, though your monthly payment is 1796 on a 30 year fixed. Some people think, Oh, if I just throw an extra $1,000 a month at this, I'm going to be debt free years sooner. And the truth is, yes, you will save 90k in interest, and you are. Going to own the house outright earlier. But what's the opportunity cost if that same 1k a month went into investments earning even 7% annually, after 15 years, it grows to about 311k   Keith Weinhold  20:16   Well, that is more than three times the interest savings, which again, was only 90k so for some paying off the mortgage early feels like some sort of emotional win, but it is rarely the best financial win. I mean, that is like benching LeBron to save money on Gatorade. I mean, that is a bunch of nonsense. So debt free is the floor. Financially Free is the ceiling. I mean, do you know about those popular call in shows where people are advised to lower their standards, diminish their quality of life, not go on vacations in order to get debt free? Oh, dear. I mean, those shows have got to be screening their callers closely to ensure that no one savvy actually gets on the air. Somebody, hey, how about you? Why don't you get on the air? Get on that show. Ask them some tough questions about getting mortgage debt free. You tell them yeah. Tell them that your ROI on all that equity is zero because home values change regardless of equity positions. Tell them that a home is never paid off because you'll still owe property tax and maintenance and repairs and utilities and maybe insurance and an HOA. Tell them you lost the gift of inflation eating your debt while you sleep. Tell them mortgage interest is often tax deductible. Tell them that their leverage is gone, and all these facts, every one of those I just stated, they're now figuratively not just talking. They're yelling. They're screaming now, because markets of all types are at all time highs. So instead, if you had used those funds to pay off a property, they would have really missed out on earning big returns for years elsewhere, a steep opportunity cost. Suffice it to say, I would love to see the widespread adoption of 50 year mortgages, and I would use them. The other thing that would happen is that it would make home prices rise further, because more people can afford the lower payments to bid up the price. So actually, here's something that I'm wondering about with you. Did you ever have a paid off property, and then realize all of this, and then go and get new financing on it again. Have you ever done that? If you have that would be really interesting. Let us know if you've had a property in a paid off position, realized the vulnerability and the opportunity cost of having all that illiquid equity, and then you went and put debt back on it. Let us know at get rich education.com/contact. That's get rich education.com/contact. Like Ridge lending group knows this when I have chili ridge here, like she and I discussed, you even get the cash chunk out tax free. And here's what else is interesting about this. Just say you know how out in the world of real estate agents, where people are buying and selling property, well, whenever a buyer's agent knows that that listed property is owned by a seller that still has a mortgage on it, well the assumption is that the seller, well, they might be a little more motivated to sell since they have to make mortgage payments on that property that they might not even be occupying anymore. Well, that is backwards. In most cases, you should be more motivated to want to sell a property if it's paid off because you've got all that dead equity in it that needs to be released through that sale. So really, a listing agent should be thinking, this seller has got to sell this property with urgency, if for no other reason, because he or she has lots of equity in that property. That's how to think about it. The world has it 100% backwards. That mindset is 180 degrees from the truth coming up next.    Keith Weinhold  24:25   Did you know that this week? Yes, right here in mid October every year is historically the best week of the year to buy a home. Also, what's it like behind the scenes here on the microphone? I've got that and more straight ahead. I'm Keith Weinhold. You're listening to get rich education,    Keith Weinhold  24:44   if you're scrolling for quality real estate and finance info today, yeah, it can be a mess. You hit paywalls, pop ups, push alerts, Cookie banners. It's like the internet is playing defense against you. Not so fun. That's why it matters to get clean. Mean free content that actually adds no hype value to your life. This is the golden age of quality email newsletters, and I write every word of ours myself. It's got a dash of humor, it's direct, and it gets to the point because even the word abbreviation is too long, my letter takes less than three minutes to read, and it leaves you feeling sharp and in the know about real estate investing, this is paradigm shifting material, and when you start the letter, you'll also get my one hour fast real estate video, course, completely free as well. It's called the Don't quit your Daydream letter. It wires your mind for wealth, and it couldn't be simpler to get visit gre letter.com while it's fresh in your head, take a moment to do it now at gre letter.com Visit gre letter.com    Keith Weinhold  25:55   the same place where I get my own mortgage loans is where you can get yours Ridge lending group NMLS, 42056, they provided our listeners with more loans than anyone because they specialize in income properties. They help you build a long term plan for growing your real estate empire with leverage. Start your pre qual and even chat with President Caeli Ridge personally, while it's on your mind, start at Ridge lending group.com. That's Ridge lending group.com. Hi.   Russell Gray  26:29   This is Russell Gray, co host of the real estate guys radio show, and you're listening to get rich education with Keith Weinhold. Don't quit your Daydream.   Keith Weinhold  26:36   welcome back to get rich Education. I'm your host. Keith Weinhold, there's a lot to look forward to in future months here on the show, new content from me, new prominent guests, the return of some favorite guests, a live event to tell you about and our annual home price forecast show, where I'll also reveal if last year's GRE home price prediction for this year came true or not. I have got to say I have nailed it to the exact percent a few years in a row now. But if you remember, before this year began, I forecast 5% national home price appreciation for this year. We will see how that turns out, but home prices are only up one or 2% year over year so far. Yes, not only do I make the forecast, I actually follow up with the previous years to check the accuracy. Don't you wish everyone did that? Well, it is October, and it's the month where you got to be ready to defend your love of candy corn and the same Americans complaining about inflation also bought a 40 foot skeleton for the front yard. Well, the best time to buy a home, historically, is this week this year. It happens to fall on October, 12 to 18th, as it turns out. Why would that be? It sounds kind of random, doesn't it? Well, the NAR recently reported on this, and this is what they give, a three word moniker, aptly named the best week. That's what they call it, the best week. Now, this applies more to primary residences into one to four unit investment property, but it's a little applicable to apartment buildings too, and this really helps you understand real estate buying, selling and consumer nature. Historically, this week offers the most favorable balance of market conditions for buyers. This is when inventory tends to be elevated. Prices typically dip below their seasonal peak. The buyer competition slows, and just the overall pace of the market becomes more manageable. Again, quote, unquote, the best week this seasonal shift every year, it's influenced by school schedules and even weather patterns. Housing activity typically ramps up in the spring. It peaks in the summer because a lot of families try to move while children are out of school and the desire to settle before the new academic year that's back when you've got the warmer weather and the longer daylight hours, and you got these curb appeal enhancements from Lush summer foliage that also makes spring and summer an ideal time for showings in inspections, that adds further momentum to the summer surge. These sort of things actually matter. But then the calendar shifts into fall, and demand naturally tapers off. Every year you got families with school age children that exit the market, and then the remaining inventory begins to linger longer, and prices respond by dipping below peak levels. And homes tend to stay on the market longer. This happens every year. That makes for conditions that benefit late season buyers. So listings tend to become more plentiful now each October inventory levels, they tend to peak in early fall, and that's why it's about the best time to buy. You have less competition from other buyers, home buyer shopping during again, what is called the best week, you should expect less competition. Properties tend to attract the most viewership per listing early in the spring, and that's when buyers trickle into the market before the inventory picks up. And then the summer ushers in both more homes and more shoppers, and that means that buyers face quite a bit of competition in the summer, so the best week that should offer more time for buyers to deliberate, and it can mean that sellers are more eager to compromise. And the numbers back that up historically that this is the peak week for price reductions. So what can you do if you're potentially in the market? You might want to hit up gre investmentcoach.com and have our coaches connect you with the right income property if that's the right move for you, and doing that is totally free. In fact, most listeners buy their first income property that way. In fact, if you had a good experience with a GRE investment coach, go ahead and tell a friend about it. Now, let's say that you had $1 back in the year 1995 so you've got a green dollar bill in your pocket 30 years ago. All right. Well, what would happen to your dollar if you saved it versus putting it in stocks versus putting it in real estate? What do you think would happen in each of those three scenarios? Let's do it. Let's compare well, because of inflation, your dollar would be worth less than 50 cents if you had saved it, yeah, it would have just 47 cents worth of purchasing power today. Instead, if you had put it in the s, p5, 100, your dollar would have seen some pretty significant growth. It would be worth $19 today. That's how stocks have performed over the past 30 years. But what about real estate? Well, there are so many ways to do it specifically. What if it were a rental property where real estate pays five ways, not just one or two like stock. What kind of return can you expect from real estate? Well, when you add up all five ways, just using historic norms like classic rates of appreciation and a four to one leverage ratio, you get 38% as a total rate of return in year one. And then that rate starts to fall because equity accumulates. And if you're not initiated on that, and it sounds like such a high flying number, you can see my free video course that teaches you this at get rich education.com/course, the most valuable free course you've ever taken in your life. At get rich education.com/course, let's just get conservative and say so many things go wrong with your property that we're going to round that 38% all the way down to 20% per year. Yes, if you're new here, those sound like ridiculous rates of return. Anyone that's listened here for a while instead has been enjoying those rates of return if you bought right? I mean, you have so much more time and money in your life now, but at 20% ROI, your $1 from 1995 would be worth $237 today. Wow, and again, if it were saved under a mattress, it would be worth less than 50 cents, and in the sp5 100, just 19 bucks. This is a simplified way to demonstrate that compound leverage beats compound interest. I mean real estate beats stocks by more than 12x right there and see that's the type of multiplier that you're probably going to need on your money. Since it already takes $5 million to live the American dream, you might very well need $25 million over the next few decades, while the 401 K was created around 1980 the Roth IRA created in 1998 and the GRE podcast was created on October 10, 2014, and I trust that it's had a more positive impact on your life than any of those other vehicles.   Keith Weinhold  34:56   This means that I've released weekly episodes here for. 11 years, never missing a week at all, 52 weeks a year, and we've never replayed an old show either. I am here for you. Integrity means doing what you say you're going to do. Vedran, our sound engineer, has been here with GRE for 11 years as well. That is the team, the duo, that's been bringing you this show. And also, I didn't even tell my team here at GRE this yet, so I guess they'll learn now, the platform business rate just ranked us and awarded get rich education the best of the year, 2025 as a real estate school. Yes, we learned that this award is based on outstanding reviews from real customers, not nominations or votes, but the best of the year award comes from feedback through listeners just like you. Thank you for that, and thanks business rate this show and real estate investing, they are the main things that I do, and I expect to be here for you well into the future. Now, it's sort of funny here, kind of a paradox on the show I talk about income production that's largely passive, yet producing this show at a high level for 11 years here on this side of the microphone is not passive. It is highly active. I got a reminder of this recently when a doctor buddy of mine said he considers starting a podcast on the side. Let me tell you what I shared with him that is probably a terrible idea to launch an ongoing podcast where you'll constantly carve out the time to produce high quality week after week. That is not a side gig. 99% of those scenarios fail. You've got to deliver great new content yourself. You've got to have a network of guests to compliment you. You got to perform research and then cross check your research, because you've got to publish real, true information. You need a reliable editing solution. You need some organizational skills. You're going to need to hire some skilled and specialized assistance in the real estate world. You've actually got to get out into the field and visit cities in person to corroborate your research on the ground and go to in person conferences. I mean, there's a lot to do, but I did tell my doctor friend, you know, the good news is that there are alternatives to starting a show. There are a couple of them. In fact, first, you can do a 10 episode mini series on your area of expertise, host it on YouTube or Spotify and then send that link to clients. Another thing you can do is get yourself booked as a guest on someone else's show, and you'll pay a podcast booking agent to do that one strong guest episode that could do more than 100 of your own episodes ever could. So that's my guidance. In case you know any thought leaders that considered doing that, and what things look like from my view back behind the mic, it is not passive income, although my investing mostly is and another thing, if I've hosted a past guest on the show, and I get feedback from you or other listeners that they're not looking out for your best interest, or they don't want to do the property rehabs that they promised. Well, they are not coming back onto the show. Instead, we move on. I am here to do good and connect you only with providers that are doing good. Another show related announcement, and if you listen here each week through the get rich education mobile app. This is really important if you're listening to me right now on our dedicated mobile app, the hosting platform terminates at the end of this month, so you're going to have to listen in a different way. Go to either the apple podcasts app or the Spotify app and search get rich education to keep listening that way, you'll keep learning, stay motivated and never miss an episode of my incomprehensibly slack jawed vocals, profligate and unrepentant. Again, if you're listening to me right now on our dedicated GRE mobile app, the hosting platform terminates at the end of this month, you'll have to listen in a different way. Go to either the apple podcasts app or the Spotify app and search. Get rich education inside those apps in order to keep listening after this month, until next week, I'm your host. Keith Weinhold, don't quit your daydream   Speaker 2  39:41   Nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of get rich, education and. Will see exclusively.   Keith Weinhold  40:09   The preceding program was brought to you by your home for wealth. Building, get richeducation.com.  

Get my new book: https://bronsonequity.com/fireyourselfDownload my new special report - How to Use Inflation to Your Advantage - www.bronsonequity.com/inflationWelcome to our latest episode!Join host Bronson Hill in this webinar featuring experts sharing contrarian strategies for passive investors navigating economic shifts.Brien Lundin, editor of Gold Newsletter and director of the New Orleans Investment Conference, offers insights into gold and silver markets.David Morgan, author and founder of The Morgan Report, specializes in precious metals and rare earth elements.Russell Gray, founder of Raising Capitalist Foundation and former host of The Real Estate Guys Radio, blends real estate and metals expertise.Explore why gold is a safe haven amid tariff-driven market volatility, learn to allocate precious metals for liquidity and insurance, and discover contrarian opportunities in mining stocks, real estate, and essential assets.TIMESTAMPS00:00 - Wealth Forum Live (September 25-26, 2025, Dallas)01:35 - Panel introductions: Brien Lunden, David Morgan, Russell Gray03:16 - David on contrarian investing: The lone wolf theory10:45 - David on tariffs unsettling bond markets and driving gold demand21:22 - Brian's chart: Gold as a safe haven amid dollar and treasury shifts24:39 - David on physical metals as a foundation before mining stocks27:06 - Russ on using gold as collateral for liquidity, not selling34:36 - David on rare earth elements and China's supply dominance43:32 - Russ on investing in essential assets like housing and energy46:05 - Brian on speculative mining stocks with undervalued resources50:17 - Brian on silver supply constraints for industrial use57:30 - Closing: How to connect with panelistsConnect with the Guest:Brien Lundin:Website: https://goldnewsletter.com/https://neworleansconference.com/Linkedin: https://www.linkedin.com/in/brien-lundin-b37a4819/X: : https://twitter.com/GoldNewsletterRussell Gray:Show: https://mainstreetcapitalist.com/Linkedin: https://www.linkedin.com/in/russellwgray/Email: follow@russellgray.comDavid Morgan:Website: https://silversunrise.tv/Website: https://www.themorganreport.com/Linkedin: https://www.linkedin.com/in/thedavidmorgan/Facebook: https://www.facebook.com/TheMorganReport#PreciousMetals#GoldInvesting#SilverInvesting#ContrarianInvesting#PassiveIncome#RealEstate#EconomicOutlook

Get my new book: https://bronsonequity.com/fireyourselfDownload my new special report - How to Use Inflation to Your Advantage - www.bronsonequity.com/inflationWelcome to our latest episode!Join host Bronson Hill for the 2025 Investing Opportunities Webinar, featuring top experts sharing strategies for passive investors navigating Trump's second term.Russell Gray, co-founder of The Real Estate Guys and Main Street Capitalist, focuses on real estate, small businesses, and teaching kids capitalism through the Raising Capitalist Foundation.David Morgan, founder of The Morgan Report and SilverSunrise.tv, is a leading voice on precious metals as a store of value and the spiritual side of money.Tom Burns, founder of Carbon Capital and author of Rich Doctor, specializes in real estate development and cash-flowing investments.Explore how Trump's policies—tariffs, tax breaks, and deregulation—may impact real estate, precious metals, oil and gas, and small businesses. Learn strategies to hedge inflation with hard assets, leverage debt, and capitalize on distressed opportunities like commercial real estate and small business acquisitions.TIMESTAMPS00:00 - Wealth Forum Live (September 25-26, 2025, Dallas)01:19 - 2025 Investing Outlook: Trump's policies, risks, and opportunities02:20 - Panel introductions: Russell Gray, David Morgan, Tom Burns04:10 - Trump's impact: Tariffs, tax breaks, and economic policies09:03 - Real estate outlook: Bonus depreciation and inflation10:36 - Precious metals and inflation: David Morgan's perspective14:16 - Bronson's intro: CEO of Bronson Equity, author of Fire Yourself15:02 - Inflation strategies: Real estate, metals, and debt20:58 - National debt and precious metals: David Morgan on saving in metals23:43 - Poll: Precious metals investment (45% not invested, 30% heavily invested)27:34 - Poll: Top investments for 2025 (real estate 41%, cash-flowing businesses 18%)29:16 - Cash flow opportunities: Real estate, debt, and oil and gas33:03 - David Morgan's idea: Commercial real estate for private vaults36:13 - Russell Gray on cash-flowing businesses and distressed debt41:25 - Q&A: Oil and gas prices under Trump's energy policy47:31 - Q&A: Buying precious metals and borrowing against them51:09 - Bronson's deal: Nimbus e-commerce business (15% cash flow, 3.0x equity multiple)52:03 - Closing thoughtsConnect with the Guests:Tom Burns:LinkedIn: https://www.linkedin.com/in/tom-burns-9744304/David Morgan:Website: https://silversunrise.tv/Website: https://www.themorganreport.com/Linkedin: https://www.linkedin.com/in/thedavidmorgan/Facebook: https://www.facebook.com/TheMorganReportRussell Gray:Linkedin: https://www.linkedin.com/in/russellwgray/Email: follow@russellgray.com#PassiveInvesting#InflationHedge#PreciousMetals#RealEstateInvesting#CashFlow#TrumpEconomy#SmallBusiness

In this Topical Tuesday episode, I spoke with Russell Gray who is  a seasoned commercial real estate investor.  He's a respected voice on macroeconomic trends with decades of experience navigating interest rates, cycles, debt markets, and global capital flows. Be sure to tune in if you're interested in learning about: Insights on how the “One Big Beautiful Bill” and Trump's economic approach could reshape the U.S. economy toward production and Main Street prosperity. How real estate investors can anticipate market moves by tracking trade deals, opportunity zones, and targeted capital inflows. Strategies for positioning in asset classes and markets poised to benefit from energy expansion, manufacturing growth, and infrastructure investment. Why lower interest rates, productive debt use, and targeted regional plays may give Main Street investors an edge over Wall Street. To your success, Tyler Lyons Resources mentioned in the episode: Russel Gray Email Website Interested in learning how to take your capital raising game to the next level? Meet us at Capital Raiser's Edge. Learn more here: https://raisingcapital.com/cre

In this insightful episode of The Real Estate Breakthrough Show, Christina Suter sits down with Russell Gray, an experienced entrepreneur and investor. They discuss the importance of purpose, both in real estate investing and life. Russell shares his journey from starting businesses to understanding the deeper meaning of financial freedom and how it ties into personal fulfillment. The conversation dives into why money alone doesn't create happiness, the flaws of centralized systems, and how the future may look in an age of decentralization. If you're searching for purpose and a true path to financial freedom, this episode is for you. Tune in to learn how you can break through the rat race, find your own purpose, and leverage real estate to create lasting wealth and fulfillment. Don't miss Russell's insights on how to navigate the shifting landscape of the economy and the rise of decentralized capitalism.

Register here for the live online event to learn about ‘Unlocking BRRRR Deals in Little Rock on Thursday, July 17th at 8PM Eastern. Keith discusses the competitive nature of short-term rentals (STRs) and the need for hosts to offer luxury amenities to attract guests. Long time investing pro, Alex, joins us to cover the BRRRR strategy in Little Rock, Arkansas, an investor-advantaged market, emphasizing its low property taxes and stable cash flow. They explain the BRRRR process, including: buying, renovating, renting, refinancing, and repeating.  The strategy allows investors to scale their portfolios with minimal initial capital, offering a 0% management fee in year one and 4% in year two.  Resources: Register here for the live online event to learn about ‘Unlocking BRRRR Deals in Little Rock on Thursday, July 17th at 8PM Eastern. Show Notes: GetRichEducation.com/561 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com GRE Free Investment Coaching: GREinvestmentcoach.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  You get paid first: Text FAMILY to 66866 Will you please leave a review for the show? I'd be grateful. Search “how to leave an Apple Podcasts review”  For advertising inquiries, visit: GetRichEducation.com/ad Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript:   Automatically Transcribed With Otter.ai    Keith Weinhold  0:01   Welcome to GRE I'm your host. Keith Weinhold, anymore when you own short term rentals like Airbnbs and vrbos, you are in an all out arms race competing to provide amenities like never before. Then what happens when you take the popular burr real estate strategy and overlay it with one of the most investor advantaged markets in all of America. It's a lucrative opportunity. You'll see how and why today on get rich education.    Keith Weinhold  0:32   Mid south home buyers, I mean, they're total pros, with over two decades as the nation's highest rated turnkey provider, their empathetic property managers use your ROI as their North Star. So it's no wonder that smart investors just keep lining up to get their completely renovated income properties like it's the newest iPhone. They're headquartered in Memphis and have globally attractive cash flows, an A plus rating with the Better Business Bureau, and now over 5000 houses renovated their zero markup on maintenance. Let that sink in, and they average a 98.9% occupancy rate, while their average renter stays more than three and a half years. Every home they offer has brand new components, a bumper to bumper, one year warranty, new 30 year roofs. And wait for it, a high quality renter. Remember that part and in an astounding price range, 100 to 180k I've personally toured their office and their properties in person in Memphis. Get to know mid south enjoy cash flow from day one. Start yourself right now at mid southhomebuyers.com that's mid southhomebuyers.com   Speaker 1  1:58   You're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education.   Keith Weinhold  2:14   Welcome to GRE from North Conway, New Hampshire to North port, Florida and across 188 nations worldwide. I'm Keith Weinhold, and this is get rich education, happy July, the second half of the year. And my favorite month of the year is your Airbnb fancy enough, because anymore STRS short term rentals have gotten so competitive that hosts treat their properties like white lotus level hotels. Now, STRS were never passive, but they become even less so it is active income. Once upon a time, Airbnb hosts could just sort of drop a few colorful throw pillows on their fold out couch and make a killing. But no more those days are so far gone. The STR game has changed drastically. I mean, you used to be able to list a basic home with generic furniture that you got at Costco, minimal amenities, no Wi Fi, and still get it booked, but today, it will sit empty unless you offer more than just a place to sleep. You have to build an experience for Airbnb guests. Now, increasingly, hosts are doing things like adding outdoor kitchens, arcade machines, putting greens, even basketball. And now, though these upgrades do cost a lot up front, they can pay off. These amenity types can double your nightly rate, but they come with more responsibility and more to maintain. I mean, more guests are expecting a flawless experience. The trend is that Airbnbs are becoming full scale hospitality operations, and if you don't treat it like one, you're going to fall behind. So simply having a nice house that just no longer cuts it, running a short term rental today is nothing like it was even two or three years ago. You used to be able to stand out with a decent bed and colorful throw prolos, but now guests are basically comparing your place to boutique hotels. Hosts are deeply investing in design, forward furniture, layered lighting and featuring spaces that some market as what they call moments like cozy reading corners in these luxurious bathroom setups, adding things like welcome guides and even complete brand identities with a proper. Name and even a logo and a story to give the place some personality, even writing up a history for your property, even if it's not that historic. Now, these sorts of tactics, they actually do, seem to work. Guests will give you more bookings, better reviews, and guests even share the space on social media like it's somewhat of a lifestyle destination now sometimes STR hosts, they team with these other platforms to add welcome champagne in ice buckets on site, sommeliers, private chefs, daily, housekeeping on demand. 24/7 textable concierges, heated plunge pools and other amenities through you partnering with some of these platforms and these upgrades don't come cheap. The publication called the playbook, they featured an STR in Sag Harbor, New York, where the property owner invested $85,000 into overhauling the landscaping and adding a James Turrell Inspired LED light installation. But overall, these improvements boost rental revenue by an average of 40% over what the property was collecting previously. All right, so this is a case study now, though, this STR trend of offering deep hospitality and luxury amenities has turned into more of a job and less about passive income. You know, really, this is free market capitalism, because this is competition to see who can provide the best service at the lowest price, but that's what it is. So this is making real estate less of a good and more of a service. Short term rentals soaring supply, day rate compression and AI driven pricing tools. That means that the just this all nice house with good photos thing that no longer cuts it. It is an amenities arms race now, and of course, this is a national trend. It doesn't mean that it's happening absolutely everywhere. In some places, hosts are able to charm guests simply with something like a freshly baked loaf of banana bread, but the consensus is whether they spend a little or a lot, Airbnb hosts unanimously say that they've got to work harder in order to keep guests happy. It's become more of a business and less of a side hustle than it used to be. You've got more hosts leaning into higher upfront investments because they know guests will pay for a sort of turnkey, Instagrammable experience. And this really is a classic early adopter issue, just like a lot of things, Airbnb launched in 2007 by the way, so this sort of first wave of Airbnb hosts back around 2012 to 2015 they were riding a blue ocean back then. There was virtually no competition. There weren't any standards, and there were plenty of bookings, and that made a lot of hosts pretty fat and happy. But that's not where we are now, really. The bottom line is that in many markets, short term rentals have transitioned from partial passivity to all out hospitality. That's the Airbnb arms race. The average Airbnb nightly rate for North America. Do you care to venture a guess at the average nightly rate? It is approximately $216 per night, and that right there is up 26% from 2020 so it is not up as much as house prices over that five year period from 2020 really, the Airbnb rate is up about as much as the long term rental rate.    Keith Weinhold  8:58   While we're talking numbers a quarter recently ended. Let's hit on our asset class rundown. What's happened to home prices in the past year? Well, when you aggregate all these sources, Zillow, Freddie, Mac case, Shiller, FHFA, in totality, home prices are up 2% single family rents are up 3% apartment rates are down 1% due to their oversupply. The 30 year mortgage rate was 6.9% a year ago, and it's 6.8 now. CPI inflation is 2.4% expressed in year to date terms. Now the SP5 100 is up 5% in the first half of this year, ending near 6200 the dollar is down. That means that it takes more of them to buy gold, which is over $3,300 an ounce, gold is up 27% just from the start of this year, and the oil price is still depressed in the 60s. Per dollar for a barrel, Bitcoin still strong, ending the quarter at 106kthat's your asset class rundown, which we do about quarterly.    Keith Weinhold  9:57   Hey, I really enjoyed meetingside. Of you on this year's terrific real estate guys Investor Summit at sea was concluded about a week ago. It was two days on land in Miami, followed by a week of conferences and fun aboard a Caribbean cruise ship. I really got to meet you and get to know you, because we had nine days together, and as one of the faculty members, I hosted a table at dinner every night, and each night the attendees rotated around to my table, so I got to meet a lot of you and really get to know you, and you got to know me. Yeah, it was as interesting for me to meet you in person, perhaps, as it was for you to meet me, because I like to hear what you're doing in real estate, investing, in everything else. I gave a main stage presentation that was almost an hour of all me, all GRE and also served on five different panel discussions. Oh, it's such a unique event. Get this, I was kind of dressed up to give my main stage presentation, which so many of you, by the way, told me afterwards, that that was your favorite presentation of them all, all week long, because each faculty member made a main stage presentation. But what I want to tell you is, just a few hours after I presented, on the cruise ship, I was shirtless in the water throwing a football around at the beach in St Thomas Virgin Islands. What an event. Fantastic to meet a number of you in person. So far today, I hope what I've shared with you has been informative. Next. It's something informative and really actionable that you can make lucrative that's next. I'm Keith Weinhold. You're listening to get rich education.    Keith Weinhold  11:45   The same place where I get my own mortgage loans is where you can get yours. Ridge lending group and MLS, 42056, they provided our listeners with more loans than anyone because they specialize in income properties. They help you build a long term plan for growing your real estate empire with leverage. Start your pre qual and even chat with President Caeli Ridge personally, while it's on your mind, start at Ridge lendinggroup.com. That's Ridge lendinggroup.com.    Russell Gray  12:16   You know what's crazy your bank is getting rich off of you, the average savings account pays less than 1% it's like laughable. Meanwhile, if your money isn't making at least 4% you're losing to inflation. That's why I started putting my own money into the FFI liquidity fund. It's super simple. Your cash can pull in up to 8% returns, and it compounds. It's not some high risk gamble like digital or AI stock trading. It's pretty low risk because they've got a 10 plus year track record of paying investors on time in full every time. I mean, I wouldn't be talking about it if I wasn't invested myself. You can invest as little as 25k and you keep earning until you decide you want your money back, no weird lock ups or anything like that. So if you're like me and tired of your liquid funds just sitting there doing nothing, check it out. Text family to 66866, to learn about freedom. Family investments, liquidity fund again. Text family to 66866.   Russell Gray  13:30   Hi. This is Russell Gray, co host of real estate guys radio show, and you're listening to get rich education with Keith Weinhold, don't quit your Daydream. You Keith,   Keith Weinhold  13:38   welcome back to get rich Education. I'm your host. Keith Weinhold, we're talking to a guest not only about an investor advantaged market, but when you overlay a certain strategy with it, this can be highly lucrative for investor returns, and we're with a long time investing pro Alex, welcome onto the show.    Alex Craig  14:04   Hi Keith, thank you.    Keith Weinhold  14:05   Well talking about top US cashflowing market, let's get right to it. Tell us about yours.   Alex Craig  14:11   Little Rock, Arkansas. It's a market that we've been in since 2012. I personally invest there. I've got about 75 doors of multi family, single family. And the reason why it works is just cash flow. Over the years, we've had investors from around the country that have owned portfolios where maybe they're somewhere in Phoenix or Dallas, where they're kind of speculating. This is not a speculation market, and that's why it works for myself. It's consistent. It's very linear, and linear is a word that we use a lot to describe. And if you're going to be a cash flow investor, and that's why I'm in it, it's you want a linear market. You don't want ups or downs, and then you want to make sure it's a growing market too. And Little Rock checks all the boxes of what you would want in a stable cash flow environment market.   Keith Weinhold  14:57   And I think a lot of our investor listeners are. Already pretty keen on that. You get a high ratio of rent income to purchase price. You have laws that heavily favor landlords over tenants. But Alex, in today's environment, people are more conscious about rising operating expenses and higher mortgage expenses, and that's really one advantage that Arkansas can give right now, is with those low property taxes   Alex Craig  15:20   Keith,it's so interesting you mentioned that because I did have a conversation with a client of ours that had a property in another market that he had mentioned how his property taxes had gone up and gone up substantially, which that's to expect. I mean, after COVID, there was a lot of markets saw a huge boost, especially with markets that saw hedge funds come in. Hedge Funds, I believe, ruined a lot of markets, raised the prices. And another reason I like Little Rock, it flies under the radar. You think is Little Rock is a small market, but it's really not. It's, I mean, the population of the city is 250,000 but the metro area, which is a 50 mile radius around Little Rock, is much bigger. And the entire, not only the entire market, metro area, feeds off little rock, really, the entire state does too. But that being said, because it's floating under the radar, the property tax have remained low. They've taken a little bit of bump over the years, because the values steadily go up, but they started low anyway. So with operating costs of insurance, insurance has gone up for a lot of for my own properties in other markets, it's going up, and it's going up in Little Rock too. I mean, it's just the name of insurance, but property taxes have remained low. They've always been low, and that's really a big help as to why this market works for us.   Keith Weinhold  16:30   Talking about flying under the radar, you're talking about, therefore evading a lot of that hedge fund money. Tell us more about the market and some of those anchors and drivers.   Alex Craig  16:40   It's a blue collar town. You've got logistics. Is a market, or is a segment of the industry that has really come on strong over the last few years, Amazon has really put a footprint in the market. Healthcare is a huge, huge market, like I mentioned earlier, not only does the region feed off the direct to the entire state, it's the hub of healthcare for the entire state of Arkansas, of course, it's government. Government provides a lot of jobs. The good thing about government jobs is they're maybe not on a national level anymore, but on a local, state level, they're very it's hard to get let go from a government job, unless now, not on a federal level, but it's very steady, so a lot of steady blue collar jobs, and that's what you want for a strong resident base, especially in the type of properties and 1000 to $1,200 price range, you want those blue collar study growing jobs.   Keith Weinhold  17:31   Yes, you do have those there. It's funny. I'm smiling a bit because I used to be a state government employee, and there's just no way that they ever would have fired me. I was so protective I had to quit in order for them to have to replace me at that job. I'm wondering about the new supply that's come on, Alex, because a number of markets have added supply. I know, for example, that Redfin reports that little rock median home price appreciation is up 7.3% year over year, and with the dynamics going on in the market recently, that typically tells us that there hasn't been that much new supply added. Is that what's going on there?   Alex Craig  18:11   No, there hasn't been a lot of new supply. I just think with little rock and every other market, the mortgage rates have gone up. Home ownership is down during COVID. It was really hard to get an investment property. For what we did, sending out our list every week. It was basically send out our properties, people hitting send and not even knowing what they were reserving. Rates were just low, right? Everybody's jumping in. It was hard to get inventory. So now what we have is, you know, higher rates that scares some people off. It pushes some people out on the market, but it also creates opportunity. I feel like this is the easiest time I've been investing in real estate since 2007 that was the foreclosure crisis, Great Recession, and it was a lot of foreclosures on the market, and that's how I built a big chunk of my portfolio. But now it's just a matter of there's not as many people in it. So for us, there's just more acquisitions for us to go out and get. There's still distressed homes on the market where individuals don't want to hire a realtor, they just want all cash offers. They're ready to get rid of them, and that's where we step in. And without as much competition like I said, we kind of fly under the radar. I feel it creates more just supply inventory for us and for me as an investor, but also for our clients too   Keith Weinhold  19:23   with that in mind, and again, a lot of our audience is already on board, knowing that little rock in Arkansas is a good cash flow market with stable, long term fundamentals, but in order to make it more profitable, you've overlaid it with a certain strategy there in Little Rock. Tell us about that.    Alex Craig  19:45   So the BRRRR strategy, yes, it's able to work now because there's not as many buyers in the market. So basically, the way the burrs strategy works is we acquire a property. I'm just going to use very round, simple numbers for simple math makes it easier on me   Keith Weinhold  19:58   and we're talking the BRRRR. Strategy that's buy, renovate, rent, refinance, and repeat. Those are the five investor steps.   Alex Craig  20:07   correct. And so that's what we do, is we buy. Let's just say the B. Let's take the B, for example, we buy a home, and we buy it for 60,000 where I'm just talking like if I own the home, and then I put $20,000 into the deal. So now I'm all into it for 80,000 and you have to remember, there's some in between, cost of closing costs. I'm just talking just very general strategy. You buy it for 60, you put 20 into it, and all of a sudden you're in it for 80, and the value comes back at 100 so you're in it for 80% of the after repair value. Most Fannie Mae lenders will do 75% so if you purchase a house outright, you put 20% down, but if you are doing a refinance, you're able they'll do it at 75% so instead of buying a home and putting it down payment upfront, you're using equity in the deal. And that's what the burst strategy is, buy renovate. So we buy it, we renovate it, we refinance it, we rent it out, and then you repeat it. So it allows for investors to scale their portfolios quicker and stretch their money a little bit further. So if you've got, I've got $50,000 and I want to invest in real estate, if you purchase a home, you're bound by the down payment. Once you put that down payment, it's, I wouldn't call it sunk cost, but that money's gone for reinvesting. The burr model allows you to stretch that money a little bit further. Now, like I said, I gave pretty basic numbers to the deal, but that's what you're going for. Some equity in the deal, and that's what we're able to provide for ourselves and for our clients.   Keith Weinhold  21:38   So let's review that numbers on a little rock burp, making a $60,000 purchase with a pre renovated property. Then the investor puts another 20k into it for the renovation. So now they're all in for 80k and they get a 100k appraisal on that property, and then they can borrow, say, 75% of that there, that is the refi portion, the fourth letter of the BRRRR acronym. So therefore they've got 80k into it, and they got 75k back, meaning they would only have 5k into it, but maybe another 5k for closing costs, and now they only have 10k in to a 100k property. That's the appeal. That's what we're talking about here with the BRRRR   Alex Craig  22:22   strategy. I mean, you're exactly right. And as I mentioned, I use some really basic numbers, because when you're using, you know, 100,060 and 20 makes them very basic. It's pretty hard to find out a deal worth 100,000 these days, even when we started in the industry, 100,000 was a pretty cheap after pair value. Probably the mean value of the homes that we're dealing in is probably about 140 to 140 to 160 but same principle, based on those same logic that what we just talked about, I wouldn't say, you know, five or 10k out of pocket, but if you're talking about purchasing a deal with 25% down versus doing a bur you're probably going to be in it at 15% Out of pocket costs 10 to 15% as opposed to putting a down payment of 25% but the big thing is, you're getting money back, and you're not putting as much so just it's great for scale. I don't know if you'll talk about DSCR lending very much on your show, but that's something that a lot of our clients, and that does 80% so we have a lot of clients going that route now too.   Keith Weinhold  23:21   Okay, so you could do 80% with debt service coverage ratio loans, but to drop back in our example, to help be clear, the investor has 80k of their own skin in the game into the property, 60k for the purchase, 20k for the renovation, even though they only have 80k in it appraises for 100k that ARV, that after repair value. Why is the after repair value 100k when you only have 80k into it? Why is it more?   Alex Craig  23:49   that's based off comparable sales? So when you're in it at 80, and you're going to refinance it through a lender, they're going to send an appraiser out, and appraiser is going to pull comparable sales within that neighborhood. So just because you're in an 80 the appraiser is going to go pull three comps, very similar to that home. So if we're selling a three bedroom one bath, they're going to pull three comps at a three bedroom one bath, relatively the same size look, if it's got a carport, they're going to try to find three houses with the carport. So in theory, that's what they're doing. They're pulling comparable sales and developing new value based on recent sales.   Keith Weinhold  24:23   So it's that you have this knowledge to buy in neighborhoods and buy in certain sub markets, where, when you know that capital is added and renovations are made and a rehab period that they do tend to appraise for that value based on the comparables that are already there.   Alex Craig  24:40   Yeah. I mean, if we were to take the same house at 60,000 and didn't do any work, he would then say, well, you've got some comparables here versus 100 but you could never sell this home for 100 these are the things you have to do, and that's what we do during the first R the renovate of the acronym is to renovate the home to the condition that the. Appraisers feel that are comparable for the neighborhood, and that's a real important part, is comparable to the neighborhood. We could go in and put in a Jacuzzi tub and grain of countertops. We actually, we do put a lot of grain in, because we get it so cheap. But you could go in and fix it up to the nines, but it's not going to appraise for any more than the others, because the appraiser would say, we over improved it. So we improve it to what we know, what the kind of the standard for the neighborhood? Because you could over improve these things for sure and not get that return on that investment.   Keith Weinhold  25:28   That is a great answer. There is a specific improvement target that you know that needs to be hit. Tell us more about this burr process, because to an out of area investor, it can sound pretty intimidating if they had to manage contractors remotely themselves,   Alex Craig  25:43   there definitely is a need to have a team on the ground that you trust, that you feel comfortable with, and that's what we've done. I've been doing it in multiple markets for myself since 2007 and we built into a business model in 2010 like I said, expanded Little Rock in 2012 and we've been doing this for 15 years now for other investors. So we've got that name and that reputation of taking care of our investors, that's the important part. And we do see a lot of investors get burned, because you can find a realtor to go to help you find deals, but usually the realtor relationship is thesis to end. It's okay, I found you a deal, but then there's so many other things afterwards, and the renovations, where I see so many people get burned, and you know, we manage approximately 1200 homes between two markets, and that's where I see when property owners come to us, they've been burned the most. It's like they've paid somebody $50,000 they didn't finish the job, they didn't do what they say they're going to do. So the renovation that we're the team on the ground, we've got a in House Project Manager, we've got a network of subcontractors. We tend to act as the contractor, subbing things out. We've got in house property management. We've got all the tools, but it's really between both. In the markets in which I operate. I've got about 30 employees within property management, renovations, acquisitions, so the team on the ground is and then the back in the property management part is the long, ongoing accountability. So if something doesn't work out, that's the way we said it. If we say it's going to rent for 1200 and we rent it out for 900 Well, we really got a big egg on our face. You do a few of those, and that's how you don't stay in business anymore. And there's, and I like to say, about every five years the market corrects itself into getting the wrong players out of the business. COVID was super easy, easy to find deals, easy to sell deals. But once the market changed and it became a little more competitive and rates rose, that's the people that have been around for the long time, been in it for the long haul, that stick around. They've got the established business model and their reputation. So every five years, a good correction in the market eliminates those bad players.   Keith Weinhold  27:47   So you have this vetted, proven in play system that investors can get into besides just identifying the property, it comes with that system, those contractors or that investor just has one point of contact with you there for updates on the renovation.   Alex Craig  28:03   Yeah. I mean, I feel like we know these neighborhoods. I like I feel we know these neighborhoods like the back of our hand. We've been investing in them for a decade plus, and we know the areas you want to be in, the areas you don't want to be in. And we have a lot of investors will call us either they already own the property or they're a current client, and they'll say, Hey, I could get this deal for 30,000 and it's worth 100 and I'm like, Well, that sounds too good to be true, especially if it's on the open market. If it was that good of a deal, it's already gone. We just know the market, where to be. We know what to pay. We could, pretty much just through our experience, identify a house we know probably within about five to 10% before we even dive into comparable sales of what it's worth. We could walk through a house within probably about three to five minutes and peg the renovation costs probably within about 10% now we still order an inspection, and that's where we uncover the things that we can't see, that maybe there's a bunch of rotted out joist or a foundation problem that we didn't see. So, but there's things aside we could walk through and we pretty much know, okay, it needs a roof that's 7000 it needs an air conditioner that's six flooring, two. So that's the expertise that we bring and like. So then the management part of it, on the back end, that kind of ties it all together with accountability.   Keith Weinhold  29:22   And I know that your typical project renovation cost tends to be about 25k just for simplicity, we use 20k in that example, and your completion times are shorter than others that have inexperienced crews. So tell us about that typical renovation time. Alex.   Alex Craig  29:39   every day we're accomplishing 500 so 25,000 divided by 500 comes to 50 days, 50 days. So we'll knock that out in about 50 days. And we just have a large network of subcontractors that we've been working with for years. If you weren't in the business, I think that'd be really hard to accomplish, and there's just a lot that. Goes into it. I mean, the renovating the homes, it's the once, it's the worst, it's the hardest thing that we do. For sure, it's definitely the most scheduling, but it's where, if you don't know what you're doing, a great deal turns into, how do I get out of this?   Keith Weinhold  30:15   Right, absolutely. Now, in our example, we used where an investor puts 60k into it for the purchase to start with, because I see the burst strategy is a good strategy. If someone doesn't have a lot of capital, like they would for maybe a new build property, can one even finance that initial purchase amount?   Alex Craig  30:35   Yeah, so private lending. So that's the part that makes if you've only got 50 grand to facilitate this entire process, and you want to try to repeat it as many times as you can. 50,000 would not be enough just to pay cash. So yes, we have private lending. We set that up. Sometimes we lend it ourselves. Sometimes we outsource it to some of our strategic partners, but we'll lend the money to buy and renovate the home. A typical what that loan would look like it's about 3.3 points of loan origination. So if you've got an $80,000 loan, that's $2,400 most lenders do require for you to bring that up front, and now you're in it for an $80,000 loan at 12% which, five years ago, that sounded crazy to borrow at 12% but with for private lending, that's not bad at all, especially you want to get in and out of it quickly. So if we're renovating the home, and you know, 50 days, if you're already pre approved with your lender, and they have all your documents by the time we finish renovating the home, the appraisals lined up, and you could be in and out of these private loans in about 90 days. That love that depends on the lending side, that you're giving the lender what they need. But ideally you want to be in these things about 90 to 120 days. So $80,000 loan at 12% that $800 a month. So if you're in it for 90 days, 800 times 320, 700 plus the loan origination fee. But that's how you do it. That's the you're just borrowing money to finance the acquisition, the rehab and the refinance   Keith Weinhold  32:03   that is an option for you if you don't have the cash here to come in with these burr strategy properties. Alex, tell us more about it. Really, what I would like to know is, when an investor gets their appraisal, their after repair value, how many want to sell it for a profit, and how many want to hold it with a tenant for long term income   Alex Craig  32:26   so far, zero. Want to sell it for a profit. If you're all in it for add and then you're selling for 100 once you sell it, there are other fees involved. You got to hire a realtor. Right now is a great time to hold it's a slow real estate market. I don't think Little Rock from an aspect, is where home ownership is down. I think that's a nationwide thing. So I think if you're going into this, you certainly want to look at it from perspective. This is a buy and hold. I don't think this is the best market to get into to buy something. Flip it with a in the example, we use a $20,000 margin with buyer concessions, realtor commissions. That's a lot of work involved. And let's just say it did work out. You sold it for 100 but you had to pay 2% closing in an agent fee, and you got some holding cost. Let's just say you netted 8000 that might be good for a six month return, but I feel like there's a lot of risk. I feel like our job as what we do for our clients, is to minimize risk. So someone came and said, Hey, I want to flip it. I would say, Well, I don't think it's the best market for it right now. I think you want to get into this buy and hold.   Keith Weinhold  33:29   Yes, Alex has been doing this for a long time, and he's a specific expert right there in that local market. Buy and hold is a strategy that most likely makes sense. And he also strongly recommends pay cash if possible, instead of using that 12% short term private lending option, like he mentioned before, because that can cut out about four to 5k worth of transactional cost. And then if you do buy and hold what Alex and his company offer there in Little Rock is essentially a cash flow boost, 0% management fee in year one and only 4% in year two. So that gives you some extra cash flow runway as well. And Alex, before I ask you if you have any last thoughts, I want to announce to you the audience, that we have a live event virtually next week, on July 17, at 8pm eastern for Little Rock BRRRRproperties that Alex is CO hosting with our investment coach, Naresh, where you can find these bird deals in this cash flowing market. In Little Rock you'll see actual bird deals recently completed with full breakdowns of their purchase prices, sort of these case studies, where you can see some real numbers and what the rehab budgets are and what the actual timelines were, and what the refi outcomes were like, and explore BRRRR ready properties that are currently available to own, if you so choose, on this upcoming live event that you can attend from the comfort of your own home. Learn the full process, from acquisition to renovation to property management to the financing of them, and again, everything is all handled by local experts, so that you don't have to live with the nightmare of remotely managing contractors, which I couldn't imagine doing. So whether you're a first time investor or you're scaling your portfolio, this is your chance to get boots on the ground, insight and a proven road map to burr success and really one of the most accessible markets in the country. Again, Alex here is CO hosting the event along with GRE investment coach, Naresh Vissa. It is a free, live virtual event again next week, Thursday, July 17, at 8pm Eastern. Sign up is open now at gre webinars.com it ought to be great. Alex, teaming with local experts like you has been of real benefit to our audience. Do you have any last thoughts about either Little Rock or burrs or the events that you're going to co host with our audience next week?   Alex Craig  35:57   So here's my last thought, as you were, you know, kind of concluding and I was reviewing what we had talked about. And one of the questions we get sometimes it's a fair question. It's like, well, if this is such a great deal, why don't you keep all the deals? So we hear that from time to time, and the simple answer is, we do. We do keep a lot of deals, and we're buying more real estate now, like I said, I feel like it's the easiest time to get into real estate. So we do, we do keep a lot. We're building a very large portfolio right now, but the house flipping to investors is just another business model that we have. And Property Management too. And we love property management, and we love building investor relationships. We've had a lot of investors we've had been with us since day one that we've developed really tight relationships with. So yes, we do keep a lot of the properties, and we sell properties too, and we and helps us build our management company, which you don't hear too many people say this, but we actually love property management. That's a hard thing to love, but we actually like it.   Keith Weinhold  36:54   That is more weird than Tom wheelwright loving taxes, perhaps, but Right. But I want to deal with somebody that really loves what they're doing, especially when they're protecting our asset and probably more importantly, when it comes to property management, protecting our time. So that's right, Alex, well, our viewers and listeners are really looking forward to it next week, again, that live event Thursday, July 17, at 8pm Eastern is something that you can sign up for now at grewebinars.com. Alex, we're looking forward to it next week.   Alex Craig  37:27   Bye, Keith, thank you.   Keith Weinhold  37:34   Oh yeah. Terrific overview on why the burr strategy can be so profitable. And our event next week. Now, when you rent your primary residence, which you would typically do in a high cost area, and then you own rental property elsewhere, typically a low cost area, do you know what that's called? Yeah, there is a name for that. Last week we spoke to two listener guests in California that are doing just that. That is called rentvesting. And yes, Little Rock is surely a popular low cost market for rentvesting. I have been on the ground myself in Little Rock with Alex's associate to do an on the ground tour of properties. There you want to tap into a system where you've got the guiding hand of both experience and belief. That's what you're doing here. As like he said, Alex personally owns 75 doors there. That is belief, and he's been doing this for out of area investors for 15 years. That's the experience part real proof of concept at next week's event, you'll be introduced to this same system where you can lean on their team for acquisition, renovation and management. Little Rock has an MSA population of about 770,000 but I think more importantly today, savvy investors are conscientious of keeping their expenses down, and for good reason, since they've been up all over the place. Now, the purchase price is 140 to 160k for these BRRRR optimized single family rentals. Remember that we used 100k just for ease of an example there, usually when you buy income property, you're really in at close to 25% of the purchase price when you add up the down payment and closing costs, but this way, you're in for just about half of that at 10 to 15% another low expense is that property tax, statewide, Arkansas Property Tax is just 610 of 1% so that's half the national average. And then your management expense is definitely going to be low for the first two years, because it is 0% in year one and 4% in year two. And these are properties that you can actually be pretty proud of. You'll learn more about this. Scope of work with a renovation on the webinar, often granite countertops in the kitchen is a live, remote event. So this means that you can have any of your questions answered in real time. Should you have them? As you can imagine, demand is high for these properties, and this is a chance to get connected directly with the team that makes it happen. We might never get Alex on an event like this again, and is co hosted with our GRE investment coach, Naresh. It's next week. It's free, Thursday, July 17, at 8pm Eastern, 5pm Pacific. Sign up now, or your future self might not be able to forgive yourself. You can do that now at grewebinars.com Until next week, I'm your host. Keith Weinhold, don't quit your Daydream.   Speaker 3  40:56   Nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax, legal real estate, financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of get rich Education LLC, exclusively.   Keith Weinhold  41:19   You know, whenever you want the best written real estate and finance info, oh, geez, today's experience limits your free articles access and it's got pay walls and pop ups and push notifications and cookies disclaimers. It's not so great. So then it's vital to place nice, clean, free content into your hands that adds no hype value to your life. That's why this is the golden age of quality newsletters, and I write every word of ours myself. It's got a dash of humor, and it's to the point because even the word abbreviation is too long, my letter usually takes less than three minutes to read, and when you start the letter, you also get my one hour fast real estate video. Course, it's all completely free. It's called the Don't quit your Daydream letter. It wires your mind for wealth, and it couldn't be easier for you to get it right now just text. GRE to 66866, while it's on your mind, take a moment to do it right now. Text, gre to 66866   Keith Weinhold  42:35   The preceding program was brought to you by your home for wealth, building, getricheducation.com.

Founder of the Raising Capitalists Foundation and previous co-host of The Real Estate Guys Radio show, Russell Gray, joins Keith to discuss the historical and current devaluation of the U.S. dollar, its impact on investors, and the broader economic implications. Gray highlights how the significant increase in interest rates has trapped equity in properties and affected development. He explains the shift from gold-backed currency to paper money, the role of the Federal Reserve, and the impact of the Bretton Woods Agreement.  Gray emphasizes the importance of understanding macroeconomic trends and advocates for Main Street capitalism to decentralize power and promote productivity. He also criticizes the idea of housing as a human right, arguing it leads to inflation and shortages. Resources: Connect with Russell Gray to learn more about his "Raising Capitalists" project and his plans for a new show. Follow up with Russell Gray to get a copy of the Beardsley Rummel speech transcript from 1946. follow@russellgray.com Show Notes: GetRichEducation.com/558 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com GRE Free Investment Coaching: GREinvestmentcoach.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  You get paid first: Text FAMILY to 66866 Will you please leave a review for the show? I'd be grateful. Search “how to leave an Apple Podcasts review”.  For advertising inquiries, visit: GetRichEducation.com/ad Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript:   Automatically Transcribed With Otter.ai  Keith Weinhold  0:01   Welcome to GRE. I'm your host. Keith Weinhold, what's the real backstory on why we have this thing called the dollar? Why it keeps getting debased? What you can do about it and when the dollar will die? It's a lesson in monetary history. And our distinguished guest is a familiar voice that you haven't heard in a while. Today on get rich education.   Mid south home buyers, I mean, they're total pros, with over two decades as the nation's highest rated turnkey provider, their empathetic property managers use your ROI as their North Star. So it's no wonder that smart investors just keep lining up to get their completely renovated income properties like it's the newest iPhone. They're headquartered in Memphis and have globally attractive cash flows and A plus rating with a better business bureau and now over 5000 houses renovated. There's zero markup on maintenance. Let that sink in, and they average a 98.9% occupancy rate, while their average renter stays more than three and a half years. Every home they offer has brand new components, a bumper to bumper, one year warranty, new 30 year roofs. And wait for it, a high quality renter. Remember that part and in an astounding price range, 100 to 180k I've personally toured their office and their properties in person in Memphis, get to know Mid South. Enjoy cash flow from day one. Start yourself right now at mid southhomebuyers.com that's mid south homebuyers.com   Russell Gray  1:54   You're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education.   Keith Weinhold  2:10   Welcome to GRE from St John's Newfoundland to St Augustine, Florida and across 188 nations worldwide. I'm Keith weinholden. You are inside get rich education. It's 2025. The real estate market is changing. We'll get into that in future. Weeks today. Over the past 100 years plus, we've gone from sound money to Monopoly money, and we're talking about America's currency collapse. What comes next and how it affects you as both an investor and a citizen.   I'd like to welcome in longtime friend of the show and someone that I've personally learned from over the years, because he's a brilliant teacher, real estate investors probably haven't heard his voice as much lately, because until last year, he had been the co host of the terrific real estate guys radio show for nearly 20 years. Before we're done today, you'll learn more about what he's doing now, as he runs the Main Street capitalist platform and is also founder of the raising capitalists foundation. Hey, it's been a few years. Welcome back to GRE Russell Gray.   Russell Gray  3:19   yeah, it's fun. I actually think it's been maybe 10 years when I think about it, I remember I was at a little resort in Mexico recording with you, I think in the gym. It was just audio back then, no video.    Keith Weinhold  3:24   Yeah, I remember we're trying to get the audio right. Then I think you've been here more recently than 10 years ago. But yeah, now there's this video component. I actually have to sit up straight and comb my hair. It's ridiculous. Well, Russ, you're also a buff of monetary history. And before we discuss that, talk about the state of the real estate market today, just briefly, from your vantage point.   Russell Gray 1  3:55    I think the big story, and I'm probably not telling anybody anything they don't know, but the interest rate hike cycle that we went through this last round was quite a bit more substantial, I think, than a lot of people really appreciated, you know. And I started talking about that many years ago, because when you hit the zero bound and you have 6,7,8, years of interest rates below half a point, the change when they started that interest rate cycle from point two, 525 basis points all the way up to five and a quarter? That's a 20x move. And people might say, well, oh, you know, I go back to what Paul Volcker did way back in the day, when he took interest rates from eight or nine to 18. That was only a little bit more than double. Double is a far cry from 20x so we've never seen anything like that. Part of the fallout of that, as you know, is a lot of people wisely, and I was on the front end of cheerleading This is go get those loans refinanced and lock in that cheap money for as long as possible, because a loan will actually become an asset. The problem is, when you do that, you're kind of married to that property. Now it's not quite as bad. As being upside down in a property and you can't get out of it, but it's really hard to walk away from a two or 3% loan in a Six 7% market, because you really can't take your same payment and end up getting more house. And so that equity is kind of a little bit trapped, and that creates some opportunities, but I think that's been the big story, and then kind of the byproduct of the story. Second tier of the story was the impact it had on development, because it made it a lot harder for developers to develop, because their cost of funds and everything in that supply chain, food chain, you marry that to the 2020, COVID Supply Chain lockdown and that disruption, which, you know, you don't shut an economy down and just flick a switch and have it come back on. And so there's all of that. And then the third thing is just this tremendous uncertainty everybody has, because we just went from one extreme to another. And I think people, you know, they don't want to, like, rock the boat, they're going to kind of stay status quo for a little bit, whether they're businesses, whether they're homeowners, whether they're anybody out there that's thinking about moving them, unless life forces you to do it, you're going to try to stay status quo until things calm down. And I don't know how close we are to things calming down.   Keith Weinhold  6:13   One word I use is normalized. Both the 30 year fixed rate mortgage and the Fed funds rate are pretty close to their long term historic average. It just doesn't feel that way, because it was that rate of increase in 2022 that caught a lot of people off guard, like you touched on Well, Russ, now that we've talked about the present day, let's go back in time, and then we'll slowly bring things up to the present day. The dollar is troubled. It's worth perhaps 3% of what it was 100 years ago, but it's still around since it was established in the Coinage Act of 1792 and it's still the world reserve currency. In fact, only three currencies have survived longer than the dollar, the British pound, the Japanese yen and the Swiss franc. So talk to us about this really relentless debasement of the dollar over time, including the creation of the Fed and the Bretton Woods Agreement and all that.   Russell Gray 7:09   That's a big story, as you know, and I always like to try to break it down a little bit. One of my specialties I'd like to believe, is I speak macro and I speak Main Street. And so when I try to break macroeconomics down, I start out with, why do I even care? I mean, if I'm a main street investor, why do I even care? In 2008 as you know, is a wipeout for me. Why? Because I didn't think anything had happened in the macro I didn't think Wall Street bond market. I didn't think that affected me. One thing I really cared about was interest rates. And I had a cursory interest in the bond market. We just try to figure out where interest rates were going. But for the most part, I thought, as a main street real estate investor, I was 100% insulated. I couldn't have been more wrong, because it really does matter, because the value of the dollar, in other words, the purchasing power of the dollar, and usually you refer to that as inflation, right? If inflation is there, the dollar is losing its purchasing power, and so the higher the inflation rate, the faster you're losing that purchasing power. And you might say, well, maybe that matters to me. Maybe it does. But the people who make the money available to the mortgage community, right to the real estate community to borrow that comes out of the bond market. And so when people go to buy a bond, which is an IOU, they're going to get paid back in the currency that they lent in, in this case, dollars. And if they know, if they're making a long term investment in a long term bond, and they're going to get paid back in dollars, they're going to be worth a whole lot less when they get them back. One of the things they're going to want is compensation for that time risk, and that's called higher interest rates. Okay, so now, if you're a main street investor, and higher interest rates impact you, now you understand why you want to pay attention. Okay, so let's just start with that. And so once you understand that the currency is a derivative of money, and money used to be you mentioned the Coinage Act Keith money, which is gold, used to be synonymous with the dollar. The dollar was only a unit of measure of gold, 1/20 of an ounce. It was a unit of measure. So it's like, the way I teach people is, like, if you had a gallon of milk and you traded, I'm a farmer, and I had a lot of milk, and so everybody decided they were going to use gallons of milk as their currency. Hey, where there's a lot of gallons of milk. He's got a big refrigerator. We'll just trade gallons of milk. Hey, Keith, I really like your beef. I you know, will you sell me some, a side of beef, and I'll give you, you know, 100 gallons of milk, you know, like, Oh, that's great. Well, I can't drink all this milk, so I'm going to leave the milk on deposit at the dairy, and then later on, when I decide I want a suit of clothes, I'll say, well, that's 10 gallons of milk. So I'll give the guy 10 gallons of milk. So I just give him a coupon, a claim, a piece of paper for that gallon of milk, or 20 gallons of milk, and he can go to the dairy and pick it up, right? And so that's kind of the way the monetary system evolved, except it wasn't milk, it was gold. So now you got the dollar. Well, after a while, nobody's going to get the milk. They don't care about the milk. And so now. Now, instead of just saying, I'll give you a gallon of milk, you just say, well, I'll give you a gallon. And somebody says, Okay, that's great. I'll take a gallon. They never opened the jug up. They never realized the jug is empty. They're just trading these empty jugs that used to have milk in them. Well, that's what the paper dollar is today. It went from being a gold certificate payable to bearer on demand, a certain amount of gold, a $20 gold certificate, what looks exactly like a $20 FEDERAL RESERVE NOTE. Today they look exactly the same, except one says FEDERAL RESERVE NOTE, which is an IOU backed by nothing, and the other one said gold certificate, which was payable to bearer on demand, real money. So my point is, is he got money which is a derivative of the productivity, the beef, the soot, the milk, whatever, right? That's the real capital. The real capital is the goods and services we all want. Money is where we store the value of whatever it is we created until we want to trade it for something somebody else created later. And it used to be money and currency were one in the same, but now we've separated that. So now all we do is trade empty gallons, which are empty pieces of paper, and that's currency. So those are derivatives, and the last derivative of that chain is credit. And you had Richard Duncan on your show more than once, and he is famous for kind of having this term. We don't normally have capitalism. We have creditism, right? Everything is credit. Everything is claims on wealth, but it's not real wealth, and it's just when we look at what's going on with our current administration and the drive to become a productive rather than a financialized society, again, as part of this uncertainty that everybody has. Because this is not just a subtle little adjustment on the same course. This is like, No, we're we're going down a completely different path. But fundamentally, your system operates on this currency that is flowing through it, like the blood flowing through your body. And if the blood is bad, your body's sick. And right now, our currency is bad, and so it creates problems, not just for us, but all around the world. And now we're exacerbating that. And I'm not saying it's bad. In fact, I think it's actually it's actually good, but change is what it is, right? I mean, it can be really good to go to the gym and work out before we started recording, you talked about your commitment to fitness, and that if you stop working out, you get unfit, and it's hard to start up again. Well, we've allowed our economy to get very unfit. Now we're trying to get fit again, and it's going to be painful. We're going to be sore, but if we stick with it, I think we can actually kind of save this thing. So I don't know what that's going to mean for the dollar ultimately, or if we end up going to something else, but right now, to your point, the dollar is definitely the big dog still, but I think it's probably even more under attack today than it's ever been, and so it's just something I think every Main Street investor needs to pay attention to.    Keith Weinhold  12:46   And it was really that 1913 creation of the Fed, where the Fed's mandates really didn't begin to take effect until 1914 that accelerated this slide in the dollar. Prior to that, it was really just periods of war, like, for example, the Civil War, where we had inflation rise, but then after wars abated, the dollar's strength returned, but that ceased to happen last century.   Russell Gray  13:11   I think there's a much bigger story there. So when we founded the country, we established legal money in the Coinage Act of 1792 we got gold and silver and a specific unit of measure of gold, a specific unit, measure of silver was $1 and that's what money was constitutionally. Alexander Hamilton advocated for the first central bank and got it, but it was issued by Charter, which meant that it was operated by the permission of the Congress. It wasn't institutionalized. It wasn't embedded in the Constitution. It was just something that was granted, like a license. You have a charter to be able to run a bank. When that initial charter came up for renewal, Congress goes, now we're not going to renew it. Well, of course, that made the bankers really upset, because bankers have a pretty good gig, right? They get to just loan people money. They don't have to do any real work, and then they make money on just kind of arbitraging, you know, other people's money. Savers put their money in, and they borrowed the money out, and then they with fractional reserve, they're able to magnify that. So it's, it's kind of a cool gig. And so what happened? Then he had the first central bank, so then they got the second central bank, and the second central bank was also issued by charter this time when it came up for renewal, Congress goes, Yeah, let's renew it, right? Because the bankers knew we got to go buy a few congressmen if we want to keep this thing going. But President Andrew Jackson said, No, not going to happen. And it was a big battle. Is a famous quote of him just calling these bankers a brood of vipers. And I'm going to put you down. And God help me, I will, right? I mean, it was like intense fact, I do believe he got shot at one point. I think he died from lead poisoning, because he never got the bullet out. So, you know, when you go to up against the bankers, it's not pretty, but he succeeded. He was the last president that paid off all the debt, balanced budget, paid off all the debt, and we got kind of back on sound money. Well, then a little while later, said, Okay, we're going to need, like, something major, and this would. I should put on. I got my, this is my hat, right now, I'll kind of put it on. This is my, my tin foil hat. Okay? And so I put this on when I kind of go down the rabbit trail a little bit. No, I'm not saying this is what happened, but it wouldn't surprise me, right? Because I know that war is profitable, and so sometimes, you know, your comment was, hey, there's the bank, and then there was, you know, the war, or there's the war, then there's a bank, which comes first the chicken or the egg. I think there's an article where Henry Ford and Thomas Edison went to Congress. I think it was December. The article was published New York Tribune, December 4. I think 1921 you can look it up, New York Tribune, front page article   Keith Weinhold  15:38   fo those of you in the audio only. Russ started donning a tin foil looking hat here about one minute ago.    Russell Gray  15:45   I did, yeah, so I put it on. Just so fair warning. You know, I may go a little conspiratorial, but the reason I do that is I just, I think we've seen enough, just in current, modern history and politics, in the age of AI and software and freedom of speech and new media, there's a lot of weird stuff going on out there, but a lot of stuff that we thought was really weird a little while ago has turned out to be more true than we thought. When you look back in history, and you kind of read the official narrative and you wonder, you kind of read between the lines. You go, oh, maybe some stuff went on here. So anyway, the allegation that Ford made, smart guy, Thomas Edison, smart guy. And they go to Congress, and they go, Hey, we need to get the gold out of the banker's hands, because gold is money, and we need money not to revolve around gold, because the bankers control gold. They control the money, and they make profits, his words, not mine, by starting wars, because he was very upset about World War One, which happened. We got involved right after Fed gets formed in 1913 World War One starts in 1914 the United States sits off in the background and sells everybody, everything. It collects a bunch of gold, and then enters at the end and ends it all. And that big influx created the roaring 20s, as we all know, which ended big boom to big bust. And that cycle, which then a crisis that created, potentially a argument for why the government should have more control, right? So you kind of go down this path. So we ended up in 1865 with President Lincoln suppressing states rights and eventually creating an unconstitutional income tax and then creating an unconstitutional currency. That's what Abraham Lincoln did. And then on the back end of that, you know, it didn't end well for him, and I don't know why, but all I know is that we had a financial crisis in 1907 and the solution to that was the Aldrich plan, which was basically a monopoly on money. It's called a money trust. And Charles Lindbergh, SR was railing against it, as were many people at the time, going, No, this is terrible. So they renamed the Aldrich plan the Federal Reserve Act. And instead of going for a bank charter, they went for a constitutional amendment, and they got it in the 16th Amendment, and that's where we got the IRS. That's where we got the income tax, which was only supposed to be 7% only affect like the top one or 2% of earners, right? And that's where we got, you know, the Federal Reserve. That's where all that was born. Since that happened, to your point, the dollar has been on with a slight little rise up in the 20s, which, you know, there's a whole thing about whether that caused the crash or not. But at the end of the day, if you go look at St Louis Fed, which you go look at all the time, and you just look at the long term trend of the dollar, it's terrible. And the barometer, that's gold, right? $20 of gold in 1913 and 1933 and then 42 in 1971 or two, whatever it was, three, and then eventually as high as 850 but at the turn of the century, this century, it was $250 so at $2,500 it would have lost 90% in the 21st Century. The dollars lost 90% in the 21st Century, just to 2500 that's profound to go. That's right, it already lost more than 90% from $20 to 250 so it lost 90% and then 90% of the 10% that was left. And that's where we're at. We're worse than that. Today, no currency, as far as I understand, I've been told this. Haven't done the homework, but it's my understanding, no currency in the history of the world has ever survived that kind of debasement. So I think a lot of people who are watching are like, okay, it's not a matter of if, it's a matter of when. And then the big question is, is when that when comes? What does the transition look like? What rises in its place? And then you look at things like a central bank digital currency, which is not like Bitcoin, it's not a crypto, it's a centrally controlled currency run by the central bank. If we get that, I would argue that's not good for privacy and security. Could be Bitcoin would be better. I would argue, could go back to gold backing, which I would say is better than what we have, or we could get something nobody's even thought of. I don't know. We don't know, but I do think we're at the end of the life cycle. Historically, all things being equal. And I think all the indication with a big run up of gold, gold is screaming something's broken. It's just screaming it right now, not just because the price is up, but who's buying it. It's just central banks.   Keith Weinhold  20:12   Central banks are doing most of the buying, right? It's not individual investors going to a coin shop. So that's really screaming, telling you that people are concerned. People are losing their faith in giving loans to the United States for sure. And Russ, as we talk about gold, and it's important link to the dollar over time, you mentioned how they wanted it, to get it out of the bank's hands for a while. Of course, there was also a period of time where it was illegal for Americans to own gold. And then we had this Bretton Woods Agreement, which was really important as well, where we ended up violating promises that had to do with gold again. So can you speak to us some more about that? Because a lot of people just don't understand what happened at Bretton Woods.   Russell Gray  20:56   What happened is we had the big crash in 1929 and the net result of that was, in 1933 we got executive order 6102 In fact, I have a picture of it framed, and that was in the wake of that in 1933 and so what Franklin Delano Roosevelt did in signing that document, which was empowered by a previous act of Congress, basically let him confiscate all The money. It'd be like right now if, right now, you know, President Trump signed an executive order and said, You have to take all your cash, every all the cash that you have out of your wallet. You have to send it all, take it into the bank, and they're going to give you a Chuck E Cheese token, right? And if you don't do it, if you do it, it's a $500,000 fine in 10 years in prison. Right? Back then it was a $10,000 fine, which was twice the price of the average Home huge fine, plus jail time. That's how severe it was, okay? So they confiscated all the money. That happened in 33 okay? Now we go off to war, and we enter the war late again. And so we have the big manufacturing operation. We're selling munitions and all kinds of supplies to everybody, all over the world, right? And we're just raking the gold and 20,000 tons of gold. We got all the gold. We got the biggest army now, we got the biggest bomb, we got the biggest economy. We got the strongest balance sheet. Well, I mean, you know, we went into debt for the war, but, I mean, we had a lot of gold. So now everybody else is decimated. We're the big dog. Everybody knows we're the big dog. Nine states shows up in New Hampshire Bretton Woods, and they have this big meeting with the world, and they say, Hey guys, new sheriff in town. Britain used to be the world's reserve currency, but today we're going to be the world's reserve currency. And so this was the new setup. But it's okay. It's okay because our dollar is as good as gold. It's backed by gold, and so anytime you want foreign nations, you can just bring your dollars to us and we'll give you the gold, no problem. And everyone's like, okay, great. What are you going to say? Right? You got the big bomb, you got the big army. Everybody needs you for everything to live like you're not going to say no. So they said, Yes, of course, the United States immediately. I've got a speech that a guy named Beardsley Rummel did. Have you ever heard me talk about this before? Keith, No, I've never heard about this. So Beardsley Rummel was the New York Fed chair when all this was happening. And so he gave a speech to the American Bar Association in 1945 and I got a transcript of it, a PDF transcript of it from 1946 and basically he goes, Look, income taxes are obsolete. We don't need income tax anymore because we can print money, because we're off the gold standard and we have no accountability. We just admitted it, just totally admitted it, and said the only reason we have income tax is to manipulate behavior, is to redistribute wealth, is to force people to do what we want them to do, punish things and reward others, right? Just set it plain language. I have a transcript of the speech. You can get a copy of you send an email to Rummel R U, M, L@mainstreetcapitalist.com I'll get it to you. So it's really, really interesting. So he admitted it. So we went along in the 40s and the 50s, and, you know, we had the only big manufacturing you know, because everybody else is still recovering from the war. Everything been bombed to smithereens, and we're spending money and doing all kinds of stuff. And having the 50s, it was great, right, right up until the mid 60s. So the mid 60s, it's like, Okay, we got a problem. And Charles de Gaulle, who was the president of France at the time, went to a meeting. And there's a YouTube video, but you can see it, he basically told the world, hey, I don't think the United States is doing a good job managing this world's reserve currency. I don't think they've got the gold. I think they printed too much money. I think that we should start to go redeem our dollars and get the gold. That was pretty forward thinking. And he created a run on the bank. And at the same time, we passed the Coinage Act in 1965 and took all the silver out of the people's money. So we took the gold in 33 and then we took the silver in 65 right? Because we got Vietnam and the Great Society, welfare, all these things were going on in the 60s. We're just going broke. Meanwhile, our gold supply went from 20,000 tons down to eight and Richard. Nixon is like, whoa, time out. Like, this is bad. And so we had inflation in 1970 August 15, 1971 year before August 15, 1971 1970 Nixon writes an executive order and freezes all prices and all wages. It became illegal by presidential edict for a private business to give their employee a raise or to raise their prices to the customers.    Keith Weinhold  25:30   It's almost if that could happen price in theUnited States of America, right?    Russell Gray  25:36   And inflation was 4.4% and it was a national emergency like today. I mean, you know, a few years ago, like three or four years ago, we if we could get it down 4.4% it'd be Holly. I'd be like a celebration. That was bad. And so that's what happened. So a year later, that didn't work. It was a 90 day thing. It was a disaster. And so in a year later, August 15, 1971 Nixon came on live TV after Gunsmoke. I think it was, and I was old enough I'm watching TV on a Sunday night I watched it. Wow. So I live, that's how old I am. So it's a lot of this history, not the Bretton Woods stuff, but from like 1960 2,3,4, forward. I remember I was there.    Keith Weinhold  26:13   Yeah, that you remember the whole Nixon address on television. We should say it for the listener that doesn't know. Basically the announcement Nixon made, he said, was a temporary measure, is that foreign nations can no longer redeem their dollars for gold. He broke the promise that was made at Bretton Woods in about 1945   Russell Gray  26:32   Yeah. And then gold went from $42 up to 850 and a whole series of events that have led to where we're at today were put in place to cover up the fact that the dollar was failing. We had climate emergency. We were headed towards the next global Ice Age. We had an existential threat in two different diseases that hit one right after the other. First one was the h1 n1 flu, swine flu, and then the next thing was AIDS. And so we had existential pandemic, two of them. We also had a oil shortage crisis. We were going to run out of fossil fuel by the year 2000 we had to do all kinds of very public, visible, visceral things that we would all see. You could only buy gas odd even days, like, if your license plate ended in an odd number, you could go on these days, and if it ended on an even number, you could go on the other days. And so we had that. We lowered our national speed limit down to 55 miles an hour. We created the EPA and all these different agencies under Jimmy Carter to try to regulate and manage all of this crisis. Prior to that, Nixon sent Kissinger over to China, and we opened up trade relations. And we'd been in Vietnam to protect the world from communism because it was so horrible. And then in the wake of that, we go over to Communist China, Chairman Mao and open up trade relations. Why we needed access to their cheap labor to suck up all the inflation. And we went over to the Saudis, and we cut the petro dollar deal. Why? Because we needed the float. We needed some place for all these excess dollars that we had created to get sucked up. And so they got sucked up in trading the largest commodity in the world, energy. And the deal was, hey, Saudis, here's the deal. You like your kingdom? Well, we got the big bomb. We got the big army. You're going to rule the roost in the in the Middle East, and we'll protect you. All you got to do is make sure you sell all your oil in dollars and dollars only. And they're like, Well, what if we're selling oil to China, or what if we're selling oil to Japan? Can they pay in yen? Nope, they got to sell yen. Buy dollars. Well, what do we do with all these dollars? Buy our treasuries. Okay, so what if I got this? Yeah, and so that was the petrodollar system. And the world looked at everything went on, and the world is like, Hmm, the United States coming back to Europe, and Charles de Gaulle, they're like, the United States is not handling this whole dollar thing real well. We need an alternative. What if all of us independent nations in Europe got together and created a common currency? We don't want to be like one country, like the United States, but we want to be like an economic union. So let's create a current let's call it the euro. And they started that process in the 70s, but they didn't get it done till 99 and so they get it done in 99 as soon as they get it done, this guy named Saddam Hussein goes, Hey, I'm now the big dog here. I got the fourth largest army in the world. I'm here in, you know, big oil producing nation. Let's trade in the euro. Let's get off the dollar. Let's do oil in the euro. And he's gone. I'm not sure I should put my hat back on. I'm not sure, but somehow we went into Afghanistan and took a hard left and took this guy out.   Keith Weinhold  29:44   Some credence to this. Yes, yeah, so. But with that said,   Russell Gray  29:47   you know, we ended up with the Euro taking about 20% of the global trade market from the United States, which is about where it sits today. And the United States used to be up over 80% and now we're down below 60% still. The Big Dog by triple and the euro is not in a position to supplant the US, but I think China, whose claim to fame is looking at other people's technology and models and copying it, looked at what the United States did to become the dominant economic force, and I think they've systematically been copying it. I wrote a report on this way back in 2013 when I started really paying attention to it and began to chronicle all the things that they were doing, this big D dollarization movement that I think still has legs. It's the BRICS movement. It's all the central banks buying gold. It's the bilateral trade agreements where people are doing business outside the dollar. There's been not just that, but also putting together the infrastructure, right? The Asian Infrastructure Bank is an alternative to the IMF looking, if you have you read Confessions of an economic hitman. No. Okay, so this is a guy that used to work in the government, I think, CIA or something, and he would go down and he'd cut deals with leaders of countries to get them to borrow from the United States to put in key infrastructure so they could trade with the US. And then, of course, if they defaulted, then the US owned that in the infrastructure. You can look it up. His name is Perkins, right. Look it up confessions of economic hit now, but you see China doing the same thing. China's got their Belt and Road Initiative. And you go through, and if you want to trade with China on that route, you have traded, you're gonna have to have infrastructure. You can eat ports. You're gonna need terminals for distribution. But you, Oh, you don't have the money. We'll loan it to you, and we'll loan it to you and you want. Now we're creating demand for you want, and we also are enslaving borrower servant to the lender. We're beginning to enslave these other nations under the guise of helping them by financing their growth so they can do business with us. It's the same thing the United States did and Shanghai Gold Exchange, as opposed to the London Bullion exchange. So all of the key pieces of infrastructure that were put in place to facilitate Western hegemony in the financial markets the Chinese have been systematically putting in place with bricks, and so there's a reason we're in this big trade war right now. We recognize that they had started to get in a position where they were actually a real threat, and we got to cut their legs out from underneath them before they get any stronger. Again, I should put my hat back on. Nobody's calling me up and telling me, I'm just reading between the lines. Sure,   Keith Weinhold  32:23   there certainly are more competitors to the dollar now. And can you imagine what rate of inflation that we would have had if we had not outsourced our labor and productivity over to a low wage place like China in the east? Russ and I have been talking about the long term debasement of the dollar and why. More on that when we come back, including what Russ is up to today. You're listening to get rich education. Our guest is Russell Gray. I'm your host, Keith Weinhold, the same place where I get my own mortgage loans is where you can get yours. Ridge lending group and MLS, 42056, they provided our listeners with more loans than anyone because they specialize in income properties. They help you build a long term plan for growing your real estate empire with leverage. Start your pre qual and even chat with President Chaley Ridge personally while it's on your mind, start at Ridge lendinggroup.com that's Ridge lendinggroup.com. You know what's crazy? 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This is Rich Dad advisor, Garrett Sutton. You're listening to the always valuable. Get rich education with Keith Weinhold, don't quit your Daydream.    Keith Weinhold  34:52   Welcome back to get rich education. We're talking with the main street capitalists Russell gray about this long term debasement of the dollar. It's an. Inevitable. It's one of the things we actually can forecast with pretty good predictability that the dollar will continue to debase. It's one of the few almost guarantees that we have in investing. So we can think about how we want to play that Russ one thing I wonder about is, did we have to completely de peg the dollar from gold? Couldn't we have just diluted it where we could instead say, Well, hey, now, instead of just completely depegging the dollar from gold, we could say, well, now it takes 10 times as many dollars as it used to to redeem it for an ounce of gold. Did it make it more powerful that we just completely de pegged it 100%   Russell Gray  35:36   it would disempower the monopoly. Right? In other words, I think that the thing from the very beginning, was scripted to disconnect from the accountability of gold, which is what sound money advocates want. They want some form of independent Accountability. Gold is like an audit to a financial system. If you're the bankers and you're running the program, the last thing in the world you want is a gold standard, because it limits your ability to print money out of thin air and profit from that. So I don't think the people who are behind all of this are, in no way, shape or form, interested in doing anything that's going to limit their power or hold them accountable. They want just the opposite. I think if they could wave a magic wand and pick their solution to the problem, it would be central bank digital currency, which would give them ultimate control. Yeah. And it wouldn't surprise me if we maybe, perhaps, were on a path where some crises were going to converge, whether it's opportunistic, meaning that the crisis happened on its own, and quote Rahm Emanuel and whoever he was quoting, you know, never let a good crisis go to waste, and you're just opportunistic, or, you know, put the conspiracy theory hat on, and maybe these crises get created in order to facilitate the power grab. I don't know. It really doesn't matter what the motives are or how it happens at the end of the day, it's what happens. It happened in 33 it happened in 60. In 71 it's what happens. And so it's been a systematic de pegging of any form of accountability. I mean, we used to have a budget ceiling. We used to talk about now it's just like, it's routine. You blow right through it, right, right. There's you balance. I mean, when's the last time you even had a budget? Less, less, you know, much less anything that looked like a valid balanced budget amendment. So I think there's just no accountability other than the voting booth. And, you know, I think maybe you could make the argument that whether you like Trump or not, the public's apparent embrace of him, show you that the main street and have a lot of faith in Main Street. I think Main Street is like, you know what? This is broken. I don't know what's how to fix it, but somebody just needs to go in and just tear this thing down and figure out a new plant. Because I think if you anybody paying attention, knows that this perpetual debasement, which is kind of the theme of the show is it creates haves and have nots. Guys like you who understand how to use real estate to short the dollar, especially when you marry it to gold, which is one of my favorite strategies to double short the dollar, can really magnify the power of inflation to pull more wealth onto your balance sheet. Problem is the people who aren't on that side of the coin are on the other side of the coin, and so the poor get poorer and the rich get richer. Well, the first order of business in a system we can't control is help as many people be on the rich get richer. That's why we had the get rich show, right? Let's help other people get rich. Because if I'm the only rich guy in the room, all the guns are pointed at me, right? I wanted everybody as rich as possible. I think Trump and Kiyosaki wrote about that in their book. Why we want you to be rich, right? When everybody's prospering, it's it's better, it's safer, you have people to trade with and whatnot, but we have eviscerated the middle class because industry has had to go access cheap labor markets in order to compensate for this inflation. And you know, you talk about the Fed mandate, which is 2% inflation, price inflation, 2% so if you say something that costs $1 today, a year from now, is going to cost $1 too, you think, well, maybe that's not that bad. But here's the problem, the natural progression of Business and Technology is to lower the cost, right? So you have something cost $1 today, and because somebody's using AI and internet and automation and robots and all this technology, right? And the cost, they could really sell it for 80 cents. And so the Fed looks at and goes, Let's inflate to $1.02 that's not two cents of inflation. That's 22 cents of inflation. And so there's hidden inflation. The benefits of the gains in productivity don't show up in the CPI, but it's like deferred maintenance on an apartment building. You can make your cash flow look great if you're not setting anything aside for the inevitable day when that roof is going to go out and that parking lot is going to need to be repaved, right? And you don't know how far out you are until you get there and you're like, wow, I'm really short, and I think that we have been experiencing for decades. The theft of the benefit of our productivity gains, and we're not just a little bit out of position. We're way out of position. That's   Keith Weinhold  40:07   a great point. Like I had said earlier, imagine what the rate of inflation would be if we hadn't outsourced so much of our labor and productivity to low cost China. And then imagine what the rate of inflation would be as well, if you would factor in all of this increased productivity and efficiency, the natural tendencies of which are to make prices go lower as society gets more productive, but instead they've gone higher. So when you adjust for some of these factors, you just can't imagine what the true debased purchasing power of the dollar is. It's been happening for a long time. It's inevitable that it's going to continue to happen in the future. So this has been a great chat about the history and us understanding what the powers that be have done to debase our dollar. It's only at what rate we don't know. Russ, tell us more about what you're doing today. You're really out there more as a champion for Main Street in capitalism.   Russell Gray  41:04   I mean, 20 years with Robert and the real estate guys, and it was fantastic. I loved it. I went through a lot, obviously, in 2008 and that changed me a little bit. Took me from kind of being a blocking and tackling, here's how you do real estate, and to really understanding macro and going, you know, it doesn't matter. You can do like I did, and you build this big collection. Big collection of properties and you lose it all in a moment because you don't understand macro. So I said, Okay, I want to champion that cause. And so we did that. And then we saw in the 2012 JOBS Act, the opportunity for capital raisers to go mainstream and advertise for credit investors. And I wrote a report then called the new law breaks Wall Street monopoly. And I felt like that was going to be a huge opportunity, and we pioneered that. But then after my late wife died, and I had a chance to spend some time alone during COVID, and I thought, life is short. What do I really want to accomplish before I go? And then I began looking at what was going on in the world. I see now a couple of things that are both opportunities and challenges or causes to be championed. And one is the mega trend that I believe the world is going you know, some people call it a fourth turning whatever. I don't consider that kind of we have to fall off a cliff as Destiny type of thing to be like cast in stone. But what I do see is that people are sick and tired of monopolies. We're sick and tired of big tech, we're sick and tired of big media, we're sick and tired of big government. We're sick and tired of big corporations, we don't want it, and big banks, right? So you got the rise of Bitcoin, you got people trying to get out from underneath the Western hegemony, as we've been talking about decentralization of everything. Our country was founded on the concept of decentralization, and so people don't understand that, right? It used to be everything was centralized. All powers in the king. Real Estate meant royal property. That's what real estate it's not like real asset, like tangible it's royal estate. It's royal property. Everything belonged to the king, and you just got to work it like a serf. And then you got to keep 75% in your produce, and you sent 25% you sent 25% through all the landlords, the land barons, and all the people in the hierarchy that fed on running things for the king, but you didn't own anything. Our founder set that on, turn that upside down, and said, No, no, no, no, no, it's not the king that's sovereign. It's the individual. The individual is sovereign. It isn't the monarchy, it's the individual states. And so we're going to bring the government, small. The central government small has only got a couple of obligations, like protect the borders, facilitate interstate commerce, and let's just have one common currency so that we can do business together. Other than that, like, the state's just going to run the show. Of course, Lincoln kind of blew that up, and it's gotten a lot worse after FDR, so I feel like we're under this big decentralization movement, and I think Main Street capitalism is the manifestation of that. If you want to decentralize capitalism, the gig economy, if you want to be a guy like you, and you can run your whole business off your laptop with a microphone and a camera, you know, in today's day and age with technology, people have tasted the freedom of decentralization. So I think the rise of the entrepreneur, I think the ability to go build a real asset portfolio and get out of the casinos of Wall Street. I think right now, if we are successful in bringing back these huge amounts of investment, Trump's already announced like two and a half or $3 trillion of investment, people are complaining, oh, the world is selling us. Well, they're selling stocks and they're selling but they're putting the money actually into creating businesses here in the United States that's going to create that primary driver, as you well know, in real estate, that's going to create the secondary and tertiary businesses, and the properties they're going to use all kinds of Main Street opportunity are going to grow around that. I lived in Silicon Valley, when a company would get funded, it wasn't just a company that prospered, it was everything around that company, right? All these companies. I remember when Apple started. I remember when Hewlett Packard, it was big, but it got a lot bigger, right there. I watched all that happen in Silicon Valley. I think that's going to happen again. I think we're at the front end of that. And so that's super exciting. Wave. The second thing that is super important is this raising capitalist project. And the reason I'm doing it is because if we don't train our next generation in the principles of capitalism and the freedom that it how it decentralizes Their personal economy, and they get excited about Bitcoin, but that's not productive. I'm not putting it down. I'm just saying it's not productive. You have to be productive. You want to have a decentralized currency. Yes, you want to decentralize productivity. That's Main Street capitalism. If kids who never get a chance to be in the productive economy get to vote at 1819, 2021, 22 before they've ever earned a paycheck, before they have any idea, never run a business. Somebody tells them, hey, those guys that have all that money and property, they cheated. It's not fair. We need to take from them. We need to limit them, not thinking, Oh, well, if I do that, when I get to be there, that what I'm voting for is going to get on me. Right now, Keith, there are kids in ninth grade who are going to vote for your next president, right?   Keith Weinhold  45:56   And they think capitalism is evil. This is part of what you're doing with the raising capitalists project, helping younger people think differently. Russ, I have one last thing to ask you. This has to do with the capitalism that you're championing on your platforms now. And real estate, I continue to see sometimes I get comments on my YouTube channel, especially maybe it's more and more people increasingly saying, Hey, I think housing should be a human right. So talk to us about that. And maybe it's interesting, Russ, if I take the other side of it and play devil's advocate, people who think housing is a human right, they say something like, the idea is that housing, you know, it's a fundamental need, just like food and clean water and health care are without stable housing. It's incredibly hard for a person to access opportunities like work and education or health care or participate meaningfully in society at all. So government ought to provide housing for everybody. What are your thoughts there?   Russell Gray  46:54   Well, it's inherently inflationary, which is the root cause of the entire problem. So anytime you create consumption without production, you're going to have more consumers than producers, and so you're going to have more competition for those goods. The net, net truth of what happens in that scenario are shortages everywhere. Every civilization that's ever tried any form of system where people just get things for free because they need them, end up with shortages in poverty. It doesn't lift everybody. It ruins everything. I mean, that's not conjecture. That's history, and so that's just the way it works. And if you just were to land somebody on a desert island and you had an economy of one, they're going to learn really quick the basic principles of capitalism, which is production always precedes consumption, always 100% of the time, right? If you're there on that desert island and you don't hunt fish or gather, you don't eat, right? You don't get it because, oh, it's a human right to have food. Nope, it's a human right to have the right to go get food. Otherwise, you're incarcerated, you have to have the freedom of movement to go do something to provide for yourself, but you cannot allow people to consume without production. So everybody has to produce. And you know, if you go back to the Plymouth Rock experiment, if you're familiar with that at all, yeah, yeah. So you know, just for anybody who doesn't know, when the Pilgrims came over here in the 1600s William Bradford was governor, and they tried it. They said, Hey, we're here. Let's Stick Together All for one and one for all. Here's the land. Everybody get up every day and work. Everybody works, and everybody eats. They starved. And so he goes, Okay, guys, new plan. All right, you wine holds. See this little plot of land, that's yours. You work it. You can eat whatever you produce. Over there, you grace. You're going to do yours and Johnson's, you're going to do yours, right? Well, what happened is now everybody got up and worked, and they created more than enough for their own family, and they had an abundance. And the abundance was created out of their hunger. When they went to serve their own needs, they created abundance forever others. That's the premise of capitalism. It's not the perfect system. There is no perfect system. We live in a world where human beings have to work before they get to eat. When I say eat, it could be having a roof over their head. It could be having clothes. It could be going on vacation. It could be having a nice car. It could be getting health care. It doesn't matter what it is, whatever it is you need. You have the right, or should have, the right, in a free system to go earn that by being productive, but the minute somebody comes and says, Oh, you worked, and I'm going to take what you produced and give it to somebody else who didn't, that's patently unfair, but economically, it's disastrous, because it incentivizes people not to work, which creates less production, more consumption. I have another analogy with sandwich makers, but you can imagine that if you got a group if you got a group of people making sandwiches, one guy starts creating coupons for sandwiches. Well then if somebody says, Okay, well now we got 19 people providing for 20. That's okay, but then all the guys making sandwiches. Why making sandwiches? I'm gonna get the coupon business pretty soon. You got 18 guys doing coupons, only two making sandwiches. Not. Have sandwiches to go around all the sandwiches cost tons of coupons because we got way more financialization than productivity, right? That's the American economy. We have to fix that. We can't have people making money by just trading on other people's productivity. We have to have people actually being productive. This is what I believe the administration is trying to do, rebuild the middle class, rebuild that manufacturing base, make us a truly productive economy, and then you don't have to worry about these things, right? We're going to create abundance. And if you don't have the inflation is which is coming from printing money out of thin air and giving to people who don't produce, then housing, all sudden, becomes affordable. It's not a problem. Health care becomes affordable. Everything becomes affordable because you create abundance, because everybody's producing the system is fundamentally broken. Now we have to learn how to profit in it in its current state, which is what you teach people how to do. We also have to realize that it's not sustainable. We're on an unsustainable path, and we're probably nearing that event horizon, the path of no return, where the system is going to break. And the question is, is, how are you going to be prepared for it when it happens? Number two, are you going to be wise enough to advocate when you get a chance to cast a vote or make your voice heard for something that's actually going to create prosperity and freedom versus something that's going to create scarcity and oppression? And that's the fundamental thing that we have to master as a society. We got to get to our youth, because they're the biggest demographic that can blow the thing up, and they're the ones that have been being indoctrinated the worst.   Keith Weinhold  51:29   Yes, Fed Chair Jerome Powell himself said that we live in a economic system today that is unsustainable. Yes, the collectivism we touched on quickly descends into the tyranny of the majority. And in my experience, historically, the success of public housing projects has been or to mixed at best, residents often don't respect the property when they don't have an equity stake in it or even a security deposit tied up in it, and blight and high crime rates have often followed with these public housing projects. When you go down that path of making housing as a human right, like you said earlier, you have a right to go procure housing for yourself, just not to ask others to pay for it for you. Well, Russ, this has been great. It's good to have your voice back on the show. Here again, here on a real estate show. If people want to connect with you, continue to see what you've been up to and the good projects that you're working on, promoting the virtues of capitalism. What's the best way for them to do that?   Russell Gray  52:31   I think just send an email to follow at Russell Gray, R, U, S, S, E, L, L, G, R, A, y.com, let you know where I am on social media. I'll let you know when I put out new content. I'll let you know when I'm a guest on somebody somebody's show and I'm on the cusp of getting my own show finally launched. I've been doing a lot of planning to get that out, but I'm excited about it because I do think, like I said, The time is now, and I think the marketplace is ripe, and I do speak Main Street and macro, and I hope I can add a nuance to the conversation that will add value to people.   Keith Weinhold  53:00   Russ, it's been valuable as always. Thanks so much for coming back onto the show. Thanks, Keith.   Yeah, terrific, historic outline from Russ about the long term decline of the dollar. It's really a fresh reminder and motivator to keep being that savvy borrower. Of course, real estate investors have access to borrow giant sums of dollars and short the currency that lay people do not. In fact, lay people don't even understand that it's a viable strategy at all. Like he touched on, Russ has really been bringing an awareness about how decentralization is such a powerful force that reshapes society. In fact, he was talking about that the last time that I saw him in person a few months ago. Notably, he touched on Nixon era wage and price controls. Don't you find it interesting? Fascinating, really, how a few weeks ago, Trump told Walmart not to pass tariff induced price increases onto their customers. Well, that's a form of price control that we're seeing today to our point, when we had the father of Reaganomics, David Stockman here on the show, five weeks ago, tariffs are already government intervention into the free market, and then a president telling private companies how to set their prices, that is really strong government overreach. I mean, I can't believe that more people aren't talking about this. Maybe that's just because this cycle started with Walmart, and that's just doesn't happen to be a company that people feel sorry for. Hey, well, I look forward to meeting you in person in Miami in just four days, as I'll be a faculty member for when we kick off the terrific real estate guys Investor Summit and see and really getting to know you, because we're going to spend nine days together. Teaching, learning and having a great time on a cruise ship in the Caribbean. Until then, I'm your host. Keith Weinhold, don't quit your Daydream.   Speaker 3  55:13   Nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of get rich Education LLC, exclusively.   Keith Weinhold  55:36   You know whatever you want, the best written real estate and finance info. Oh, geez, today's experience limits your free articles access and it's got pay walls and pop ups and push notifications and cookies disclaimers. It's not so great. So then it's vital to place nice, clean, free content into your hands that adds no hype value to your life. That's why this is the golden age of quality newsletters, and I write every word of ours myself. It's got a dash of humor, and it's to the point because even the word abbreviation is too long, my letter usually takes less than three minutes to read. And when you start the letter, you also get my one hour fast real estate video. Course, it's all completely free. It's called the Don't quit your Daydream letter. It wires your mind for wealth, and it couldn't be easier for you to get it right now. Just text. GRE to 66866, while it's on your mind, take a moment to do it right now. Text, GRE to 66866   The preceding program was brought to you by your home for wealth, building, getricheducation.com.

On this episode of the Best Ever CRE Show, Pascal Wagner interviews Russell Gray, the long-time co-host of the Real Estate Guys Radio Show and a seasoned LP investor. Russell dives deep into the critical role macroeconomics plays in investment success, sharing his personal crash-and-burn story from the 2008 mortgage crisis and the economic warning signs he missed. He breaks down the shift from Wall Street to Main Street capitalism, the flaws of financialized markets, and the need to value investments based on real income. He also outlines practical strategies LPs can use to evaluate deals through macro, demographic, and geographic lenses, and advocates for a return to real asset investing and productive capitalism. Russell Gray Founder and Host Based in: Phoenix, Arizona Say hi to them at www.RussellGray.com www.linkedin.com/in/russellwgray/ x.com/RussWGray vikingcapllc.com Join the Best Ever Community  The Best Ever Community is live and growing - and we want serious commercial real estate investors like you inside. It's free to join, but you must apply and meet the criteria.  Connect with top operators, LPs, GPs, and more, get real insights, and be part of a curated network built to help you grow. Apply now at www.bestevercommunity.com Learn more about your ad choices. Visit megaphone.fm/adchoices

The financial landscape is shifting, with rumblings of a global currency reset threatening to take down the US dollar. What does this mean for limited partners (LPs), syndicators, and other passive investors? How “safe” are your investments in the event of a collapse? We'll discuss all of this and more in today's episode. Financial strategist, investor, and founder of The Raising Capitalists Foundation Russell Gray returns to the show to talk about the future of fiat currency and what investors need to know amidst a potential reset. For decades, the US dollar has been the world's primary reserve currency. Now that it's under siege and could be dethroned, what are the implications for American investors? In this episode, Russell will give you a macro view of the US financial system and share why investors should expect turbulence as we undergo a financial “detox.” We'll also discuss the best practices for investing in uncertain times, the “sleeping” real estate markets that could see enormous growth in 2025, and the major advantage Main Street has over Wall Street. Disclaimer The content of this podcast is for informational purposes only. All host and participant opinions are their own. Investment in any asset, real estate included, involves risk, so use your best judgment and consult with qualified advisors before investing. You should only risk capital you can afford to lose. Remember that past performance is not indicative of future results. This podcast may contain paid advertisements or other promotional materials for real estate investment advisers, investment funds, and investment opportunities, which should not be interpreted as a recommendation, endorsement, or testimonial by PassivePockets, LLC or any of its affiliates. Viewers must conduct their own due diligence and consider their own financial situations before engaging with any of the advertised offerings, products, or services. PassivePockets, LLC disclaims all liability for direct, indirect, consequential, or other damages arising out of reliance on information and advertisements presented in this podcast. In This Episode We Cover How to identify passive real estate investing opportunities in uncertain times The “sleeping” real estate markets that could wake up in 2025 Why limited partners (LPs) should target areas where capital is flowing Main Street's advantage over Wall Street amidst a major financial shift What happened to the US financial system when money and currency decoupled The potential fallout of the Fed creating a Central Bank Digital Currency (CBDC) And So Much More! Links Mentioned in the Show PassivePockets 160 - Syndication Secrets: Empowering Investors with Russell Gray from The Real Estate Guys Currency Wars Connect with Russell on Social

Is traditional education failing entrepreneurs? Russell Gray reveals why Main Street capitalism, real-world economic education, and mentorship hold the keys to thriving businesses and prosperous families. Learn how financial intelligence can transform your approach to entrepreneurship and wealth-building in this eye-opening episode.   Key takeaways to listen for The definition and importance of Main Street capitalism Parenting strategies for children's entrepreneurial success Main dangers of monopolies and the true essence of competitive capitalism Raising Capitalist Foundation and its mission to empower young capitalists How economic education shapes informed, productive citizens   Resources Raising Capitalists Project Equity Happens by Robert Helms and Russell Gray | Paperback and Mass Market Paperback Extreme Ownership by Jocko Willink and Leif Babin | Kindle, Audiobook, and Paperback   About Russell GrayRussell Gray is a seasoned entrepreneur, investor, and media personality with decades of experience empowering individuals to achieve financial independence through Main Street Capitalism. As a talk show host, author, conference speaker, and guest contributor on numerous prominent podcasts, Russ is dedicated to helping Main Street USA earn big, invest smart, and live free. He hosts the Main Street Capitalist Show and Main Street Capitalists Clubs, serves as the resident financial strategist for The Real Estate Guys™ Radio Show, and founded The Raising Capitalists Foundation to further support financial education. Through these diverse endeavors, Russ continues to advocate passionately for smart investing, economic empowerment, and personal freedom.   Connect with Russell LinkedIn: Russell Gray Email: follow@russellgray.com X: @RussWGray   Connect with UsTo learn more about us, visit our website at www.18summers.com or email us at info@18summers.com. To get a copy of our book “The Family Board Meeting”, click here. Subscribe to 18 Summers Podcast and leave a rating and written review!   Social Media Channels Facebook Group: 18 Summers LinkedIn: Jimmy Sheils Instagram: @18summerstribe

About the guest: Russell Gray is the co-host of the Real Estate Guys podcast and founder of the Raising Capitalist Project. Russ shares his investment strategy, finance, and real estate investment planning insights. We delve into the importance of understanding the economic system and how to navigate it to achieve financial freedom. Learn how to build wealth through real estate, raise capital, and become a successful entrepreneur.   Books recommended by: * 10x Is Easier Than 2x - https://www.amazon.com/10x-Easier-Than-World-Class-Entrepreneurs/dp/140196995X * Equity Happens: Building Lifelong Wealth with Real Estate - https://www.amazon.com/Equity-Happens-Building-Lifelong-Wealth/dp/0977488705   Relevant Links: Instagram: https://www.instagram.com/russellwgray/ YT: https://www.youtube.com/@Realestateguysradioshow Facebook: https://www.facebook.com/RussWGray Twitter: https://x.com/RussWGray LinkedIn: https://www.linkedin.com/in/russellwgray/ Podcast: https://realestateguysradio.com/   About Ray Hightower: Ray Hightower is a tech company founder and commercial real estate investor based in Phoenix, Arizona, USA. He serves as CEO of Bridgetown Partners, the creator of ROIClear.   https://ROIClear.com https://BridgetownPartners.com https://RayHightower.com   #ROIClear #Entrepreneurship​ #Business  #RealEstate   Note: ROI Clear is written without spaces: ROIClear.

Greetings from the Zagreb Franjo Tuđman Airport! Today Jason discusses modern airport design and challenges misconceptions about less prosperous countries. He also  emphasizes the importance of abandoning preconceived notions about market trends, particularly in real estate and stocks. He also promotes his Empowered Investor Pro group and upcoming conference, highlighting the value for members. He then introduces an interview with Russell Gray, warning of Gray's doomer perspective. He encourages listeners to consult with his investment counselors for portfolio optimization and makeovers. He also promotes his AI chatbot, available on jasonhartman.com, which can answer questions about investment strategies and concepts. Then Jason welcomes Russell Gray. Russell, speaking on monetary policy, highlights the erosion of Main Street prosperity due to historical shifts in fiscal policy, inflation, and centralized power. He discusses pivotal events like the Federal Reserve's creation in 1913, the Gold Confiscation Act, and the Nixon Shock of 1971, which led to significant currency devaluation and economic inequality. Gray advocates for decentralized solutions, such as investing in tangible assets like real estate and gold, fostering Main Street capitalism, and educating the next generation. He warns against over-reliance on centralized systems and emphasizes personal responsibility, financial independence, and education reform to combat the growing power imbalance. #MonetaryPolicy #FiscalPolicy #Decentralization #MainStreetCapitalism #FinancialFreedom #InvestingTips #RealEstateInvesting #PreciousMetals #EconomicInequality #WealthPreservation #GoldInvestment #Inflation #EducationReform #NextGenerationLeadership #PowerShift #EconomicCycles #FinancialIndependence #PolicyImpact #DecentralizedFinance #FreedomAndResponsibility Key Takeaways: Jason's editorial 1:27 Zagreb airport and lots of misconceptions 4:44 Trump, politics and personal finance 6:17 Be an Empowered Investor Pro Now! https://empoweredinvestor.com/ 7:13 A faulty idea 9:06 Introducing Russell 9:35 Call our investment counsellors for a FREE consultation or a portfolio makeover 10:23 Talk to Jason's Ai assistant JasonHartman.com/Ai   Russell Gray interview 11:34 The political elephant in the room 13:09 Hallowing out the middle class 20:05 What's coming next- inflation or deflation and decentralization 24:51 Action steps 30:05 Follow@RussellGray.com Follow Jason on TWITTER, INSTAGRAM & LINKEDIN Twitter.com/JasonHartmanROI Instagram.com/jasonhartman1/ Linkedin.com/in/jasonhartmaninvestor/ Call our Investment Counselors at: 1-800-HARTMAN (US) or visit: https://www.jasonhartman.com/ Free Class:  Easily get up to $250,000 in funding for real estate, business or anything else: http://JasonHartman.com/Fund CYA Protect Your Assets, Save Taxes & Estate Planning: http://JasonHartman.com/Protect Get wholesale real estate deals for investment or build a great business – Free Course: https://www.jasonhartman.com/deals Special Offer from Ron LeGrand: https://JasonHartman.com/Ron Free Mini-Book on Pandemic Investing: https://www.PandemicInvesting.com    

Jason expressed his happiness about the recent election results, predicting a positive impact on the economy. He announced a town hall meeting with various guests, including Robert Helms, Ken Mcelroy, George Gammon, and Russell Gray, to discuss the election and its implications. Jason also shared a Redfin report indicating a significant increase in renter households, which he believes will lead to a rise in asset prices. He emphasized the importance of having a plan B, using civil forfeiture as an example, and hinted at discussing more about the election and its effects in future episodes. #trumpispresident #GlobalCitizenWeek #SecondCitizenship #OffshorePlanning #PoliticalRisk #CivilForfeiture #VotingWithYourFeet #AssetProtection #TaxPlanning #WealthManagement #FreedomTeam #BorderSecurity #PressFreedom #FoodQuality #PersonalFreedom #NetworkingEvent Key Takeaways: Jason's editorial 1:20 Landslide! and a town hall meeting to discuss what this means to your investments 4:17 Redfin report: The number of renter households is growing 6:06 Chart: Renter households growing 3X faster 7:09 Surging home prices lead more Americans to stay in the renter pool   Jason SPEAKING at Global Citizen Week Miami 8:55 Having a second option 10:41 Competing for start-ups and 'voting with your feet' 12:10 Civil forfeiture: A real political risk 16:55 Rome is burning in the background 20:31 Build your "Freedom Team" 21:57 Blog Post: Navigating Market Analysis and Forecasts Data to Hold the Strategic Decision Making     Follow Jason on TWITTER, INSTAGRAM & LINKEDIN Twitter.com/JasonHartmanROI Instagram.com/jasonhartman1/ Linkedin.com/in/jasonhartmaninvestor/ Call our Investment Counselors at: 1-800-HARTMAN (US) or visit: https://www.jasonhartman.com/ Free Class:  Easily get up to $250,000 in funding for real estate, business or anything else: http://JasonHartman.com/Fund CYA Protect Your Assets, Save Taxes & Estate Planning: http://JasonHartman.com/Protect Get wholesale real estate deals for investment or build a great business – Free Course: https://www.jasonhartman.com/deals Special Offer from Ron LeGrand: https://JasonHartman.com/Ron Free Mini-Book on Pandemic Investing: https://www.PandemicInvesting.com

The 2024 election is right around the corner, and it's got a lot of real estate investors sitting on the edge. With so much political noise out there, it's tough to cut through and figure out what really matters for our industry. That's why I sat down with Russell Gray, a veteran investor and economic thinker, to get his take on what we should expect this election year… …and how the results will impact your real estate investments. Listen to today's episode to find out. Russell Gray is a second-generation entrepreneur and host of the “Main Street Capitalism” show. He's been in the real estate game for decades and has a knack for breaking down complex economic trends. In today's episode, Russell breaks down: How different election outcomes could affect key economic policies Why the next year might be crucial for multifamily investors The economic indicators he pays attention to (and why you should too) His thoughts on positioning your portfolio for different scenarios If you want to be prepared for how the election results could shake up the real estate landscape… Tune into this episode now. Take Control, Hunter Thompson Resources mentioned in the episode: Russell Gray Website Email Interested in investing with Asym Capital? Check out our webinar.   Please note that investing in private placement securities entails a high degree of risk, including illiquidity of the investment and loss of principal. Please refer to the subscription agreement for a discussion of risk factors. Tired of scrambling for capital?  Check out our new FREE webinar -  How to Ensure You Never Scramble for Capital Again (The 3 Capital-Raising Secrets). Click Here to register.   CFC Podcast Facebook Group

Get my new book: https://bronsonequity.com/fireyourself Download my new special report - How to Use Inflation to Your Advantage - www.bronsonequity.com/inflation Welcome to this episode. Today, we are thrilled to have four financial experts join us to debate one of the most pressing questions in investing today: Which is the better investment, Bitcoin or Gold? Our esteemed guests, bring decades of experience in alternative investments and financial strategy, offering valuable perspectives on both sides of the debate. Bridger Pennington As the Co-Founder and CEO of Fund Launch, Bridger Pennington has helped countless entrepreneurs start their own investment funds. Mark Moss Entrepreneur and investor, Mark Moss is a multi-talented consultant and marketer, having successfully grown six companies to seven figures within their first year. With expertise across various asset classes—gold, silver, oil, gas, securities, bonds, Bitcoin, and blockchain—Mark brings a well-rounded perspective on investing and financial markets. Dana Samuelson With 42 years of experience in precious metals, Dana Samuelson is the founder of American Gold Exchange, a company known for its integrity and reliability. Dana is a recognized expert in gold and rare U.S. coin buying and selling, with appearances in Forbes, Market Watch, and Fox Business. Russell Gray A seasoned financial strategist, Russell Gray is best known as the former co-host of The Real Estate Guys Radio Show. With decades of experience in sales and financial education, Russ has a deep understanding of the complexities of the financial system. In this episode, our panelists dive into the merits of investing in Bitcoin versus Gold. They explore the current economic environment, technological advancements like blockchain, and the traditional stability of gold as a store of value. Each expert offers their unique perspective, making for a well-rounded discussion on where to store value, how to mitigate risk, and how to capitalize on investment opportunities in a time of rapid economic change. Whether you're curious about the future of digital currencies or prefer the tangibility of precious metals, this debate will leave you with valuable takeaways on how to approach your portfolio. If you're looking to learn about alternative investments and navigate the ongoing Bitcoin vs. Gold debate, tune in now! TIMESTAMPS 00:48 - Guest introductions: Mark Moss, Bridger Pennington, Russell Gray, and Dana Samuelson 01:43 - Why Bitcoin is the best store of value in today's economy 05:22 - Bitcoin's challenges with regulation and adoption 09:55 - Blockchain technology and its potential to revolutionize finance 14:00 - Money, currency and why gold continues to be relevant 19:02 - Bitcoin's superior performance and potential for long-term growth 24:22 - Bitcoin's volatility and gold's centuries-long track record 33:05 - Bitcoin's speculative nature and sustainability 43:20 - How secure is Bitcoin and what are the risks of loss? 45:30 - What are the best storage options for physical gold? 48:00 - Final thoughts on the future of Bitcoin, gold, and alternative investments Connecting with the Guest: Bridger Pennington Website: https://www.fundlaunch.com/ Linkedin: https://www.linkedin.com/in/bridger-pennington-670035127/ Instagram: https://www.instagram.com/bridger_pennington/ Linktree: https://linktr.ee/ifs.links Mark Moss Website: https://www.1markmoss.com/optin1632748012468 Linkedin: https://www.linkedin.com/in/markmoss/ Instagram: https://www.instagram.com/markmoss/?hl=en Facebook: https://www.facebook.com/1markmoss Twitter: https://twitter.com/1MarkMoss Dana Samuelson Website: www.amergold.com Linkedin: https://www.linkedin.com/in/dana-samuelson-64793056/ Russell Gray Linkedin: https://www.linkedin.com/in/russellwgray/ Email: follow@russellgray.com #BitcoinVsGold #AlternativeInvesting #DigitalCurrency #PreciousMetals

Join us for a replay of this insightful episode as we sit down with Russell Gray, financial strategist and co-host of The Real Estate Guys Radio Show. Russell shares his journey from real estate to syndications, offers invaluable lessons from economic history, and provides strategies for navigating today's financial landscape. Whether you're a seasoned investor or just starting out, this episode is packed with actionable advice to help you achieve financial freedom. Don't miss out on this wealth of knowledge!  About Russell Gray Co-Host of The Real Estate Guys Radio Show; co-Founder of the Syndication Mentoring Club; founder of the Main Street Investor Mentoring Club; partner with Ken McElroy, George Gammon, Jason Hartman, and Robert Helms in the Collective Inner Circle Master Mind; co-author Equity Happens; regular contributor to Mike Maloney's Gold Silver Show; financial and business strategist; champion of American liberty.   Here are some power takeaways from today's conversation:01:38 His real estate journey14:38 The great reset39:06 Should you focus on income rather than appreciation?47:02 Advice to LPs to analyze deals and buy the correct one instead of the hyped deal53:51 Podcast recommendation56:00 Contact Russell56:33 Thank you This show is for entertainment purposes only. Nothing said on the show should be considered financial advice. Before making any decisions, consult a professional. This show is copyrighted by Passive Investing from Left Field and Left Field Investors. Written permissions must be granted before syndication or rebroadcasting.       Resources Mentioned:LinkedInhttps://www.linkedin.com/in/russellwgray/ Podcast Recommendations:The Woj Pod: https://podcasts.apple.com/us/podcast/nuggets-coach-michael-malone/id1470466331?i=1000600562916The Rebel Capitalist Show: https://podcasts.apple.com/mt/podcast/the-rebel-capitalist-show/id1492584441Ken McElroy Real Estate Strategies: https://podcasts.apple.com/us/podcast/ken-mcelroy-real-estate-strategies/id1465180254 Advertising Partners:Left Field Investors:https://www.leftfieldinvestors.com/Avoiding Rookie Errors as a Left Field Investor: 20 Lessons Learned From 14 Years of Passive Investing in Private Syndications by Steve Suhhttps://www.leftfieldinvestors.com/books/

Get my new book: https://bronsonequity.com/fireyourself Download my new special report - How to Use Inflation to Your Advantage - www.bronsonequity.com/inflation Welcome to our latest episode. Today, we're thrilled to have Russell Gray, a financial strategist and former co-host of The Real Estate Guys Radio Show. Russell has spent decades mastering the art of sales and financial education, helping individuals understand and navigate the complexities of the financial system. With a background in business, sales, and financial strategy, Russell brings a wealth of knowledge on how to excel in both personal and professional realms. In this enlightening discussion, Russell shares his insights on why sales skills are crucial in every aspect of life. He delves into the importance of understanding the emotional and psychological aspects of sales, explaining how connecting with someone's heart is the key to successful persuasion. Russell also discusses the impact of economic trends on investment strategies and the importance of being prepared for financial shifts. Additionally, he offers practical advice on how to use sales skills in everyday life, whether in business, relationships, or personal growth. Tune in now to gain exclusive access to Russell Gray's expertise and discover why mastering sales skills can lead to greater success in all areas of life. Don't miss out on this insightful episode! TIMESTAMPS 01:34 - Guest intro: Russell Gray 02:57 - Importance of sales skills in life and business 08:16 - Emotional connection in sales: touching the heart 10:17 - Strategies for navigating economic changes 17:49 - The role of mindset in sales success 22:19 - Applying sales techniques in personal and professional relationships 27:00 - Insights on real estate and investment opportunities 31:33 - Connect with Russell Connecting with the Guest: Linkedin: https://www.linkedin.com/in/russellwgray/ Email: follow@russellgray.com #SalesSkills #RealEstateInvesting #MindsetMatters

In this episode of the Inspired Money Live Stream Podcast, we discuss building wealth through real estate. Joined by an expert panel featuring Russell Gray, Chad Carson, Crystal Hammond, and Joe Saul-Sehy, we explore strategic investment approaches, the importance of market awareness, and effective property management. Transitioning to Wealth Building Real estate is not just about properties but about creating a wealth-building strategy. "Building Wealth with Real Estate: Strategies for Success" highlights the diverse approaches to investing in real estate. Our distinguished guests share their expertise and personal experiences, offering a comprehensive view of effective real estate investing.

No one gets wealthy from a high salary. Wealth is acquired by owning things. But how can you own MANY things without much money? I discuss it. Learn how to use major banks (Chase, Wells Fargo) to fuel your wealth and retirement when you're young.  Debt is like fire. Kids will burn down the house with fire. Adults will use fire (debt) to produce prudent leverage and outsized returns.  High salaries don't create wealth due to: lost time, no leverage, few tax benefits, and entrapment due to sunk education costs. I sat down with a conventional financial advisor. Things got interesting.  Learn why Western US homes cost more than Eastern US homes. This fact confounds most real estate pros. I break down 8 reasons. Resources mentioned:  Show Page: GetRichEducation.com/497 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  You get paid first: Text FAMILY to 66866 For advertising inquiries, visit: GetRichEducation.com/ad Will you please leave a review for the show? I'd be grateful. Search “how to leave an Apple Podcasts review”  Top Properties & Providers: GREmarketplace.com GRE Free Investment Coaching: GREmarketplace.com/Coach Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold   Complete episode transcript: Welcome to GRE! I'm your host, Keith Weinhold. Don't make this giant wealth mistake - understand why a high salary does NOT create wealth. Learn what does instead.  See how to get deep pocketed-banks like Chase & Wells Fargo build wealth for YOU.  I recently sat down with a traditional financial advisor - this got interesting. Then, why do WESTERN US homes cost more than EASTERN us homes? All today, on Get Rich Education.   Welcome to GRE! From Port Jervis, NJ to the Port of Bellingham, WA and across 188 nations worldwide, I'm Keith Weinhold and you're listening to Get Rich Education. Welcome in!   When I grew up, I thought that people got wealthy from high salaries. I figured that I could get wealthy if I got a high salary too.   And then adulthood has proven to me that… they don't.    People don't get wealthy from high salaries. They get wealthy by OWNING THINGS.   Let's break this down.    People DON'T get wealthy from high salaries.    In fact, have you ever seen THIS happen? I haven't. I worked as an employee in both the public sector and the private sector, and I've been a longtime real estate investor and entrepreneur.    In fact, how would anyone even GET wealthy from a high salary?   If you've got a job… you're trading your time for dollars and selling your time for money.    I used to do that too… and I actually think that everyone might get some perspective by having a taste of that. Most get that taste.   And say you're even entrenched in the game of climbing the corporate ladder, to a higher and higher salary.   Well, first, in my experience, many job promotions get you perhaps 10 to 30% more in salary, but 2x to 4x the responsibility - that's 200% to 400% more responsibility.     Even if there's an edge case here, in your situation, in climbing the corporate ladder - where does that even get you in the end?   Look at your supervisor and their lifestyle. Is that what you want to be?   Look up higher at your supervisor's supervisor. What's their life like? Is that the life that you REALLY want?    Is that what you aspire to be - and expend so much of your most precious resources to get THERE - time, time away from your family, energy, skill, potential. Is that really it?    The answer is right in front of you!   People don't get wealthy from high salaries. People get wealthy from OWNING THINGS. We'll get more on how - if you have average means - on how you can OWN MANY THINGS shortly.    But first, let me address any more hangups you might have if you still think that high salaries can create wealth.    We won't even look at, sort of, common jobs like an IT specialist or a systems analyst or a plumber.    Let's take an edge case - a classically, high paid profession - a doctor, a surgeon, a specialist even. Highly compensated - several hundred thousand dollars in salary each year. I know some of them.    I also know a bunch of RESIDENT doctors too and I talk with them - they're basically, finished with their formal schooling and are doctors-in-training.    They are repaying loans deep into the six figures after undergrad pre-med and after a few more years at medical school - often it seems to be $300K to $400K in debt that they have to pay back in the case of these resident doctors.   But that's besides the point. It's common for these specialist physicians, once they start working, to work as a doctor for, say, 58 hours a week… or 71-and-a-half hours a week.    Now I said that high salaries don't create wealth. How wealthy are you, if after undergrad, med school, and three years of low paid residency, you finally get out, you're in your 30s or older, and you're working 60+ hours a week.    60+ hours a week is not MY idea of wealth and freedom at all.    You know what else, when you've pursued a specialty track like that, which often comes with loads of debt, you are in so deep - you've invested so much time & energy & chapters of your life… and DEBT into that field you CAN'T pivot to another career, even if you wanted to.    You're trapped. Entrapment is the very opposite of wealth and freedom.     Understand, I just went out and gave an example of perhaps the highest salary type of person that I can think of… to help prove my point. Where's that leave you?   And you've probably heard… the “end game” trope… about climbing the corporate ladder by now.    Yep, you spent the best years of your life climbing the corporate ladder… only to find at the end… at the top… that the ladder was leaning up against the wrong wall the whole time.   Because high salaries don't make people wealthy, then how do people get wealthy from OWNING THINGS?     There are two main ways:   #1 - You can launch and own a business. #2 - Real estate.   Now, launching and owning a business takes a ton of entrepreneurial ambition, risk, and you've got to have a novel idea - a NEW idea - that creates value for the world.   This can be a worthwhile venture… and successful entrepreneurs create value for the world with their own business. It's terrific! It's capitalistic! It's turning lower use resources into higher use resources.   But unless you have your own money, you're going to have to be scrappy and resilient for a long time. Because it's really hard to get loans for a new business.   If you hire anyone to help you, you need to quickly produce enough income to have leftover profit - paying your overhead expenses, software subscriptions, paying your help… and having enough leftover to fuel your own lifestyle.   Household names like Apple and Facebook are one-in-a-million. You don't have to be an Apple or Facebook. But it's tough.    The first way is by owning a business. The second way is by owning real estate.    New businesses are unproven. Real estate is proven. Like I say, wealthy people's money either starts out in RE or ends up in RE.   But how do you OWN much real estate? Because RE is expensive, and wealth is created by OWNING things.   With prudent loans. Because RE is proven, banks will GIVE you loans. Lots of them. Have good credit, be credit worthy.   And… being credit worthy should be an innate trait in any virtuous human being. Because it shows that you repay the debts that you owe.    I think that when it comes to debt, debt is like fire. Don't let a little kid play with fire. They'll burn down the house.    Leave fire to adults. They'll use it to HEAT the house.    Leave debt to the adults. Use debt to fuel your lifestyle, fuel your ambitions, and fuel your opportunities. To the scarcity mindset of “all debt is bad”, here at GRE we say, you're an adult. Grow up.    Learn… that debt is Leverage… and your debt isn't paid back by you at all. Tenants and inflation both RELENTLESSLY and INCESSANTLY pay it down for you, until they pay it OFF for you… if you want.     So then, who's really funding your wealth, enabling you to own things?    Who really funded my wealth from nothing, enabling me to own things?    Who funded my retirement? Leverage… from Chase Bank, Wells Fargo, Bank of America, and other banks. They all give you the opportunity to let THEM fund your wealth for you.    Now, I'm going to explain a core GRE principle here. But so that this isn't repetitive for the longtime listener, I'll use a NEW analogy for you, here.   Look, let's say that you're a kid. You don't know how to responsibly use fire or debt. In fact, you're still just 4' tall.    But learning about leverage is like… seeing the light.   Now, with the sunlight, a 4' tall kid can now cast a 20' tall shadow. You look like a giant now.   5-to-1 leverage made you, not just grow up, but grow into a giant. You suddenly wield the power of a financial giant thanks to the banks.    Because with your 20% down payment, you're only putting up one-fifth of the property price.   How then, do these big banks make you a giant?   Let's say that's your $40K down - on a $200K income property, when the property appreciates only 4% - like RE did last year per the NAR number - you just got a 20% return.    How? Because you got a 4% return on both your $40K down… and you got a 4% return on your $160K borrowed.    Yep, the return from that $160K of borrowed bank money didn't go to Wells Fargo, it won't go to Chase Bank, it won't go to Bank of America.   It ALL goes to you - because you leveraged them. That's how you beat the banks. That's how you build wealth.   Two years ago, when property appreciated 10% that year, you got a 50% leveraged return.   And it gets better than that. You can make income property down payments even lower than 20%, like I did when I began.   A 4' tall kid then, that sees the light, can cast an even taller shadow than 20 feet at 5:1 leverage. A bigger giant.     Any GRE devotee knows that leveraged appreciation is one of just 5 ways you're paid. We're only talking about ONE here.   Sounds amazing. Some think, “There's gotta be a catch.” There is, but it's manageable. Leverage amplifies losses, just like gains.   Though it doesn't happen often, RE can go down in value.    Even in a downturn, look at what happens. Between any ten-year period, nominally, you won't find any loss of RE value in modern history… and you must manage cash flows.   So, no. This is not a 6-month plan. It's to build wealth durably with a reliable vehicle in more like five to ten years.    It gets better. As your equity grows, harvesting it out through a cash-out refi maintains your… magnification into a financial giant, to stick with the analogy.   And every cash-out refinance that you do… is a tax-free event. Not tax-deferred. Tax-free.   You can make tax-free cash grabs, separating it out from your properties along the way, since the IRS doesn't classify debt windfalls as taxable income, and you have a pro PM handling all the day-to-day for you, if you prefer.   Now you really know WHY, wealth is not created from high salaries. It's created from owning things.     And you need to be more than creditworthy. You need to be strategic in building your portfolio with the right properties in the right markets.    Set up a time with one of our GRE Investment Coaches… and they help you do exactly that for free.   Either that or you can just keep believing that high SALARIES create wealth. Ha!    Now, a few weeks ago here on the show, I told you that I've had a sit-down meeting coming up with a conventional financial advisor - a retirement planner type of guy.    I've been getting their e-mails and dismissing them, for 8 or 10 years, but I always stayed subscribed.   This is from when I used to work at a State DOT - Department of Transportation.    So I finally responded & we set up a 1-hour sit-down. We did it virtually on web conferencing.    I prepared by having some things ready for him that he asked for - like my monthly cash flow statement, net worth worksheet, and he also asked I have my Soc. Sec. statement pulled up, so I had that ready.   Now, this is not the forum for espousing GRE's proven wealth-building formula to him. No PROS-il-uh-tie-zing. proselytizing.    And, he told me that… I'm in really good shape.   He didn't dig in with questions on my backstory, like, how were you able to retire at such a young age… or how did you amass all this?   And yes, I could retire now. I could have a while ago. I think you know that.    He was interested in knowing what the cash flow from the rental properties was. In fact, that was his first question about them. Good first question.    Interestingly, he really wanted to know how long I have to pay on my rentals. Like, when would the 30-year mortgages be paid off?    Well, gosh, they all have 20-some years to go. Most of them are clustered around 27 years to go.    He could see that I COULD pay many of them off quickly, now, if I wanted to. But he didn't tell me that I should. Of course, I wouldn't want to lose the leverage.   You know the most interesting question that this conventional financial advisor asked about these properties that I have all over the place, in different states and even nations?   He asked, “Do you plan to LIVE in any of these areas?”  No, I don't plan to live in those properties or even in those areas. I pick investor-advantaged areas for investments, and live where I want to live.   Now, he encouraged me to import my financial info into their retirement portal. When I say, they, he works for a private company that administers the DOT's retirement plan.   You know, I had previously been reluctant to do that and share all my financials with another party.    But, I've got to say, I've reconsidered and MIGHT enter it in there. It does some pretty impressive modeling and scenarios.    For the properties, you enter the address and they use Zillow estimated values.    It looks at how the graphs change when you get to the age of where any pensions and soc sec & all that enters your life.    All-in-all, maybe you thought I'd bust this guy's chops for being scarcity-minded or not about passive cash flow. But he was pretty good. It was an hour of my time well-spent, I would even say.    And again, the reason that I was able to be positioned this way comes down to… relying on compound LEVERAGE, not compound interest - casting the shadow of a 20-foot tall giant compared to when you're a 4-foot tall child.   BTW, I do NOT consider myself retired. I remote “asset manage” my REIs and I produce this show, produce videos for our YouTube channel, write our newsletter, and write for Forbes and more… on material that is interesting to me and helps others.   Coming up straight ahead, why do homes in Western US states cost more than homes in the East?   This fact makes zero sense to most people, because areas east of the Mississippi River are more densely populated.    In fact, nearly 2/3rds live on just over 1/3rd of the land, suggesting the East should clearly be pricier.    Then how could it be opposite? It might seem weird. That's coming up shortly.   You're listening to Get Rich Education podcast Episode 497. That means we're just three weeks away from a special, milestone, Episode 500.   I'll tell ya. I sure know how to put the performance pressure on myself, don't I? Ha!    Something here that we don't often talk about or offer the opportunity for…   … if you're a business owner or decision maker and would like to advertise on our platform, well, we'd like to check you out first.    Often, I use the product or service myself first.     Get Rich Education is ranked in the Top one-half of 1% of listened-to podcasts globally, per Listen Notes.    On air EVERY single week since 2014, some say that we were the first show to finally CLEARLY explain how RE makes ordinary people wealthy.    For advertising information and inquiries, visit, GetRichEducation.com/Ad. That's GetRichEducation.com/A-D   More next. I'm KW. You're listening to Get Rich Education.    A little tribute and melodic swan song to Russell Gray there.   Welcome back to Get Rich Education. I'm your host, KW.    Before returning to real estate, let's do a quick first quarter asset class review.   It's coming a little later than usual here. But it's good to see what the rest of the world is doing.    Almost everywhere you look, asset prices are up, up, up.   In real estate, as housing intelligence analyst Rick Sharga & I discussed in detail here in each of the last two weeks, prices & sales volume are both up.   The S&P had its best start to a year since 2019, up 11%   The yield on the 10-yr T-note was up 26 basis points. Remember that mortgage rates move closely along with that.    Gold was up 8% to an ATH over $2,200. And gold even touched $2,300 here in Q2.   In the first quarter, oil was up 15% to $83.   Bitcoin was up 68% to $70K   And the biggest beneficiary of AI hype, Nvidia was up 88% in just the first quarter.   And this is even wilder - a little wild card for you here - for the first time ever, cocoa prices briefly surpassed $10,000 per metric ton, making the confectionary commodity more valuable than copper.   That's what's goin' in the TOTAL investment world.   Why do homes out West cost more than homes in Eastern states?   This fact makes zero sense to most people, because the East is more densely populated.    According to the US Census Bureau, 64.4% of Americans live east of the Mississippi River. That's on land that's barely more than one-third of the US - because the Mississippi doesn't run right down the center, it's a little to the east of center in the contiguous states.   So this means that nearly 2/3rds of people live on just over 1/3rd of the land, suggesting the East has GOT be pricier.    Well, it's strange to many that it is, in fact, just the opposite. The West is pricier.   Now that pandemic migration and RE prices have settled, we've taken a fresh look at prices and this trend - which is curious to many - continues.   Let me demystify it for you.    And you saw a beautiful, colorful map that brilliantly demonstrates this. I sent it to you a few weeks ago if you're a DQYD Letter subscriber.    Now, there are some notable exceptions to "the West is pricier", like New England and south Florida. Housing is expensive in densely populated northeastern cities.   New Mexico is an outlier as a cheap western state.   No, the West is not pricier because The Kardashians' lavish $200M total portfolio of California real estate skews the entire nation.   Here's my more, I suppose, scholarly breakdown.    Yes, one of my degrees was in Geography before I became a real estate investor.   The first reason is - NEW: The west has more new-build homes.   Higher costs of land and labor, then, had to be priced in. Eastern homes are older because it's closer to Europe's (die-A-spruh) diaspora, where the US' early immigration was heaviest.   Then there's the factor of - the FEDS: No, not Jerome Powell's Fed.    It's that over 90% of federal land is located out West. No building is typically allowed here, and that makes developable land more scarce.   This helps explain why when you see huge swaths of undeveloped land when you fly over the West and think there's boundless room for growth and sprawl, often times, there… is… not.   3-D: Maps are 2-D. The world is 3-D. Western housing is expensive because you have scenarios like port cities surrounded by mountains and high desert.    So developable land is more scarce than it seems, making demand exceed supply in more places out West than what one might think.    San Fran is confined by the bay and hills. Seattle is confined to an isthmus. Salt Lake City is next to the Wasatch Range. Alaska looks enormous, but nearly half it's state's population lives in the biggest city of Anchorage, which is sandwiched between water, mountains, and that aforementioned federal land.   The fourth reason, is CALIFORNIA DREAMIN'. Despite recent domestic OUT migration and The Kardashians aside, California REALLY DOES help tilt the balance.    People are attracted to SoCal's Mediterranean climate such that nearly 1-in-8 Americans are still coolin' in Cali, with a median home price of $737,700. That climate desirability drives up prices.   Much of CA also has… these layers - just myriad - codes and limits and regulations like, for example, solar panels on new construction that can add $25K to a home's cost alone.   The next reason western homes cost more than Eastern home is, what I'll call…   DOWN BY THE RIVER:    [Play insert]   Ha! Famous classic comedy sketch there, with the late Chris Farley.    The East has the Great Lakes and more rivers.    It costs 1/12th as much to transport goods and housing materials over water than land.    That is a fact that has been stated on this show previously. It was first brought up a few years ago when we had geopolitical strategist Peter Zeihan here to discuss the “geography of real estate” with me.    A river city like Memphis is a GIGANTIC transportation hub, for example. This keeps down the costs for all kinds of consumer goods and building materials, making for a lower cost of living and, in turn, property prices.    QUAKIN': There's more seismicity out West. It costs more to BUILD to those construction standards.    For example, CA and WA are 20%+ more expensive to build than many Southeastern states. There are more fires in the Western US, tornadoes in the middle, and hurricanes in the East.   JOBS: It takes more high-paying jobs to attract new residents and get them to uproot and move to the faster-growing West. Higher incomes buy pricier homes.    The East has tons of jobs going for it too. In fact, the northeast might be the world's most productive region - NYC, Boston, Philly, DC.    But out in Appalachia and elsewhere, there are some waning business sectors like various heavy industries and coal. But most of the ones that were going to move out, already HAVE moved out, decades go. Much of that downdrain is overwith.   The last reason is…   I CAN SEE CLEARLY NOW: The West has mountain and desert VIEWS. These can be seen from farther away than Eastern… forest and flatter areas and piedmont landscapes. The East has a lot of lake and river view properties though… and…    There they are—8 reasons why Western homes cost more than Eastern homes.   Now you know why West Virginia has million dollar homes so big that you can get lost indoors.    And in coastal Cali, it seems like a million bucks gets you little more than a ramshackled pool house.   Of course, at times, I've had to make gross generalizations about such a vast nation of 340 million people and so many variables.    Otherwise, this episode could be a few hours long. As I discussed those, you sure could think to yourself at times, “I believe there's an EXCEPTION to that criterion.”   I want to tell you why this all MATTERS TO YOU shortly.    Yes, there is some irony here though. The western US has lands that are arid, inhospitable, and what some describe as wastelands, like four deserts.   Well, the invention of the air conditioner made those places more livable.    The West also has the most beautiful national parks, and hey, some find places in the East INhospitable, like Michigan's Upper Peninsula in March.   Now, I like a change in seasons, coming from Pennsylvania like I do, but some don't. You've got to serve real estate to where people want to own and rent.    Florida has not been thought of as a mosquito-infested swamp since last century. Today, it's livable and desirable to many.    Now, there are some other factors in addition to the main 8 reasons I've mentioned, on why Western US homes cost more than Eastern US homes, from a slavery legacy to unionization and more. I've been hitting the big ones here.   Real estate has made more ordinary people wealthy than anything else.    When you're on our website, GRE Marketplace, and hover over the blue "INVEST" button, you'll notice that most long-term rental investor markets are in the East.   There's a reason.   Rents are strong relative to this LOW PURCHASE PRICE that I've discussed here.   And now you know more of the “whys” behind the Eastern US' lower property prices. And maybe, today, I hope it's the BEST understanding you've ever had for why that's the case.    We buy in strategically chosen GROWTH areas that tend to be more East than West.    And, that's really part of the progression of this show. We began in 2014 with this podcast and other real estate investor education. We still lead with that.   But next, listeners wanted to know where they could FIND PROPERTIES conducive to our wealth-building strategy, and we added that at GRE Marketplace.    Yet, that still wasn't enough because I noticed that some of you that wanted to build your wealth with real estate, needed to make it easier to have your questions answered, or find a lender, or insurer, or find just the right property in the right market that fits your goals.   So starting more than two years ago, we added Investment Coaching - it's still free like everything else that we do here.    Our coaches are real people and real, direct, real estate investors just like you are… and just like I am. Our coaches simply have more EXPERIENCE doing it than most people do.   Because knowledge is not power, but knowledge plus action is power, I often like to leave you with something actionable… that's really going to help you at the close of the show.    If you didn't already know, you can find properties and a coach, at GREmarketplace.com   Until next week, I'm your host, KW. DQYD!  

Join us on this enlightening journey with Russell Gray, co-host of the Real Estate Guys Radio Show and a seasoned financial educator, as we dive deep into the mechanics of wealth building through real estate. Russell shares his personal journey from commercial sales to becoming a titan in the real estate and financial education world. Learn how to empower your financial freedom, understand the importance of income over equity, and the vital role of financial education in today's ever-changing economic landscape. Don't miss out on these valuable insights to elevate your investing strategy. Subscribe and tune in now!  About Russell Gray Co-Host of The Real Estate Guys Radio Show; co-Founder of the Syndication Mentoring Club; founder of the Main Street Investor Mentoring Club; partner with Ken McElroy, George Gammon, Jason Hartman, and Robert Helms in the Collective Inner Circle Master Mind; co-author Equity Happens; regular contributor to Mike Maloney's Gold Silver Show; financial and business strategist; champion of American liberty.    Here are some power takeaways from today's conversation:01:38 His real estate journey14:38 The great reset39:06 Should you focus on income rather than appreciation?47:02 Advice to LPs to analyze deals and buy the correct one instead of the hyped deal53:51 Podcast recommendation56:00 Contact Russell56:33 Thank you This show is for entertainment purposes only. Nothing said on the show should be considered financial advice. Before making any decisions, consult a professional. This show is copyrighted by Passive Investing from Left Field and Left Field Investors. Written permissions must be granted before syndication or rebroadcasting.       Resources Mentioned:LinkedInhttps://www.linkedin.com/in/russellwgray/ Podcast Recommendations:The Woj Pod: https://podcasts.apple.com/us/podcast/nuggets-coach-michael-malone/id1470466331?i=1000600562916The Rebel Capitalist Show: https://podcasts.apple.com/mt/podcast/the-rebel-capitalist-show/id1492584441Ken McElroy Real Estate Strategies: https://podcasts.apple.com/us/podcast/ken-mcelroy-real-estate-strategies/id1465180254 Advertising Partners:Left Field Investors:https://www.leftfieldinvestors.com/Rust Belt Capitalhttps://rustbeltcapital.com/Left Field Investors - BEChttps://www.leftfieldinvestors.com/bec/Avoiding Rookie Errors as a Left Field Investor: 20 Lessons Learned From 14 Years of Passive Investing in Private Syndications by Steve Suhhttps://www.leftfieldinvestors.com/books/Circuit Cityinvest.circuitcity.com

Get our free real estate course and newsletter: GRE Letter Learn why inflation helps dishonest people and harms honest ones. I use an example of a honeymaker. Both new-build SFRs and apartment units are being shrinkflated. Landlords skimpflate by: delayed maintenance, transferring the electric bill to the tenant, adding a surcharge for storage locker use, firing the doorman, charging to park beneath the carport, or not replacing an old fridge. Instead, raising the rent is the ethical thing to do. To comfortably afford the typical US home, it took $59K in 2020 and $107K today. In a sense, you're both richer and poorer than your grandfather. Learn why investing through IRAs is a poor strategy. I compare RE market conditions from when I bought my first property in 2002 with 2024's conditions. Timestamps: Inflation and Immorality (00:01:51) Explanation of how inflation impacts the economy and the moral dilemma it creates for producers. Housing Affordability (00:04:26) Discussion on the impact of inflation on home affordability and the consequences for renters and homeowners. Rental Affordability and Apartment Shrinkflation (00:05:47) Insights into the shrinking size of new apartment units and the implications for rental affordability. Impact on Middle Class and Homeownership (00:08:29) Analysis of how inflation affects the middle class and the changing dynamics of homeownership. Affordability by Metro Area (00:11:09) Breakdown of home affordability in different metro areas and its correlation with real estate cash flow. Impact of Inflation on Wealth and Society (00:17:11) Discussion on the implications of inflation on wealth accumulation and its societal effects. Conventional Finance and IRAs (00:24:45) Brief mention of conventional investment vehicles like 401(k) and Roth IRA in relation to real estate investing. Conventional Wisdom (00:26:36) Challenges conventional financial wisdom, emphasizing real estate investment over traditional saving and budgeting. Roth IRA vs. Traditional IRA (00:27:45) Discusses the limitations and drawbacks of Roth IRAs and traditional IRAs in relation to increasing income and real estate investment. Market Timing (00:28:59) Emphasizes the importance of having a sound investment strategy and taking advantage of market conditions, using personal experience as an example. Real Estate Market Comparison (00:30:14) Compares the real estate market conditions in 2002 to those in the mid-2020s, highlighting changes in pros, neutrals, and cons. Investment Uncertainty (00:32:53) Addresses the uncertainty of investment and the need to adapt to shifting market conditions, emphasizing the importance of taking what the market offers. Property Highlights (00:34:13) Details three available investment properties in different locations, providing information on purchase price, rent, and potential cash flow. Long-Term Investment Strategy (00:36:55) Advises on the ideal holding period for rental properties and the benefits of new build properties in the current market cycle. New Build vs. Resale Properties (00:38:02) Discusses the advantages of new build properties and the potential impact of declining home price premiums on resale properties. Investment Coach Contact (00:39:12) Encourages listeners to contact investment coaches for assistance in exploring potential income properties. Disclaimer (00:39:42) Provides a disclaimer regarding the information presented in the podcast and advises consulting professionals for personalized advice. Resources mentioned: Show Page: GetRichEducation.com/491 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  You get paid first: Text FAMILY to 66866 Will you please leave a review for the show? I'd be grateful. Search “how to leave an Apple Podcasts review”  Top Properties & Providers: GREmarketplace.com GRE Free Investment Coaching: GREmarketplace.com/Coach Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold   Complete episode transcript:   Speaker 1 (00:00:01) - Welcome to GRE. I'm your host, Keith Weinhold. Sure, you might find monetary inflation annoying today. Learn why inflation is even worse than you think. It is an immoral force. How bad homebuyer affordability has become by metro region. Then why conventional finance and IRAs don't move the meter in your life and more today on get rich education. When you want the best real estate and finance info. The modern internet experience limits your free articles access, and it's replete with paywalls. And you've got pop ups and push notifications and cookies. Disclaimers are. At no other time in history has it been more vital to place nice, clean, free content into your hands that actually adds no hype value to your life? See, this is the golden age of quality newsletters, and I write every word of ours myself. It's got a dash of humor and it's to the point to get the letter. It couldn't be more simple. Text gray to 66866. And when you start the free newsletter, you'll also get my one hour fast real estate course completely free.   Speaker 1 (00:01:18) - It's called the Don't Quit Your Daydream letter and it wires your mind for wealth. Make sure you read it. Text GRE to 66866. Text GRE 266866.   Speaker 2 (00:01:35) - You're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education.   Speaker 1 (00:01:51) - Welcome, Gary. From Gainesville, Florida, to Brownsville, Texas, and across 188 nations worldwide. I'm Keith Weinhold. Hold in your listening to get Rich education. I'm honored to have you here. Inflation is immoral. Now, at best, you might find what the central bank, the fed, does as annoying on the consumer level. It might even severely debase your standard of living, eroding away your one and only quality of life. But how does inflation have an immoral impact on you and the actors? In an economy? A honey maker sells his jars of honey for $20. The fed prints money like crazy. The money supply doubles well. The honey maker now has three options. Keep selling honey for $20, which is where he eats the loss and keeps providing honey for his customers at the same price.   Speaker 1 (00:02:51) - Secondly, he can water down the honey or use other inferior ingredients, which is known as skin deflation or shrink the honey jar size known as shrinkflation. The last option is to be honest and increase the honey price to $40. But if he behaves honestly, he drives away his customers and they look for honey elsewhere. So therefore, those that choose to water down the honey will outcompete the honest guy. And over time, what happens with currency debasement is the producers must now weigh their financial well-being with moral integrity. And that is the problem. This is why inflation has an immoral impact on human beings. It's also a contributor to why food quality suffered during the big wave of inflation in the 1970s and 1980s. It led to rampant obesity and prescription drugs, now comprising half of our TV commercials. All these people now walking around as near zombies that need their meds. And on top of that, somehow society has quickly come to believe that this is normalcy. Then the 2020 wave of inflation is both fueling that trend, and it's now making homes unaffordable for the middle class.   Speaker 1 (00:04:26) - As a landlord, the honest thing to do then is to raise the rent. It's not honey inflation or rent inflation because the honey maker and the landlord didn't create it. It is central bank inflation. Higher rent is simply the consequence of more dollars in circulation and simultaneously new build homes. They are indeed experiencing shrink inflation as a result of this currency inflation. I discussed the incredible shrinking size of new build single family homes with you last week, where that new home size has fallen 14% in the past decade plus or minus. Well, the average American apartment size that's falling to, yes, apartment developers in their new projects. They're cutting square footage, and they're doing that to try to contain rents. The square footage of apartment units being built has not been this small since at least last century, and maybe ever. Soaring construction cost. That means developers have got to either pass along all of those increases through into the rents, or find ways to limit rent. Or one way to do that is by building smaller units.   Speaker 1 (00:05:47) - Yes, apartment construction shrinkflation. And who can blame the builder? Because rental affordability has been of increased importance in recent years, and developers have got to be able to convince their investors and their lenders that there is going to be sufficient demand at proforma rent levels among apartment units completed in 2022. That's the most recent year available. Average unit sizes fell to 1045ft², and that is the lowest level on record for apartments. And we just got confirmation on that through the US Census Bureau figures. Yes, that is for newly built multifamily rental units that therefore apartment sizes are down 8% from just five years ago. And that number could drop a bit further when 2023 stats are released. Yes, American lifestyles are being shrink inflated. All over the place, and it is even worse for those that don't own assets. And a recent peak of apartment sized construction was 2013, when they were just over 130ft². And I told you that the latest figure here is, again, 1045ft². The Covid era really saw new build.   Speaker 1 (00:07:12) - Apartment sizes drop fast because that's when people started to split up. Like if they weren't a family. Now, when rents rise, whether that's for apartments or single family homes or self-storage units or whatever it is, most any kind of real estate, you know, when those rents rise, people try to keep from raising the rent sometimes. Now landlords, instead of raising the rent, they can instead skimp flat themselves. They can do that by delaying maintenance, transferring the electric bill to the tenant, adding a surcharge for storage locker use, firing the doorman, charging to park beneath the carport, or not replacing an old fridge. That might have given you some ideas there, but I do not advocate that. That's the best way. The bottom line is that inflation is not just a persistent economic affliction. It's an immoral force. And the ethical thing to do, like you learn with the honey maker, is raise the rent. Now, when wages don't keep up with prices, that's a problem. Let's take a look at just how bad affordability is.   Speaker 1 (00:08:29) - All right. Here is the lowest salary amount that US households need to at least earn to comfortably afford the typical priced US home. Okay, we're rounding to the nearest thousand dollars here in 2020. That figure was just 59 K. In 2024 it's 107 K. All right, 59 K in household income up to 107 K today to afford the typical US home. Astounding. That is up more than 80% in four years. But at the same time here's how bad it is. Median US household income did not keep pace. You probably figured that much. American incomes are not up 80% in the past four years, but in 2020, the household income, the median was 66 K. Today it's 81 K. Well, that's up only 23%. So the income needed to comfortably afford a home is up 80%, while the actual median income has risen just 23%. That's per Zillow. Well, who does this hurt the most? Of course, it hurts that prospective first time homebuyer, not just because they usually have entry level incomes as well, but it's because they don't have any equity to roll forward into a purchase.   Speaker 1 (00:09:58) - And when first time homebuyers never get that mortgage loan pre-approval, what happens? They have to rent. So this affordability trend is good for income property owners. And you know, this is one big reason why. For a while now, I have said that I expect the homeownership rate to fall and therefore for America to have more renters, more rental demand. Well, that has now begun to fall from 66% in Q3 last year to 65.7% in Q4 of last year, and expect a homeownership rate to keep dropping. And that share of renters in the United States to keep rising. Now, let's break down this poor affordability by city. Let's break it down by metro area. I'll start with some select lowest priced cities, and then let's work our way up to the highest price cities. And I'll tell you as we ascend, when we pass the national mark, and you're going to notice that the lowest price cities, which are the earlier ones that I mentioned here, they tend to be the better areas for real estate cash flow.   Speaker 1 (00:11:09) - Here we go. In 2020, the typical Pittsburgh home could be bought with a 35 K household income. Wow, that's low today. It takes 58 K Memphis a very popular investor city here at GRA. Maybe our top investor city that has gone from 38 K in 2020 to a 70 K household income today. And it appears that more people will have to rent in Memphis. Cleveland from 41 K up to 71 K, Birmingham 42 K up to 70 4KD. Fruit 45 up to 76. Buffalo 42 up to 77. Saint Louis 45 up to 77 Kansas City 52, up to 93 Houston 56 up to 95 San Antonio 57. Up to 95. Columbus, Ohio 52, up to 96 Chicago. Still pretty affordable for such a world class city, but the median household income required to afford the average Chicago home in 2020 was 65 K, and today it's 105 K, and then you've got that aforementioned national average, 59 K and income needed four years ago up to 107 K today Philly 61 K up to 109 Jacksonville 58 K up to 109.   Speaker 1 (00:12:46) - Minneapolis 72. Up to 114 Baltimore 70. Up to 114 Atlanta 59. Up to 115 Tampa 57. Up to 116 I mean, we're looking at more than a doubling in Tampa. Las Vegas 65 up to 120. Dallas 68. Up to 121. Phoenix 66 up to 131. We're looking at about a doubling of the household income that it takes to afford the median home in Phoenix just over the last four years. Miami 76 to 151. That's another basically a doubler there. Denver 101 up to 173. Boston 118 to 205. New York City 135 to 214. And we just got a few left here as we're getting close to the top. Seattle 120 to 214 and then the top three Los Angeles 158 K to 279 K San Francisco 220 up to 340 K today. And number one San Jose, California Silicon Valley 263 K up to 450 4k. That's how much a household needs to earn to afford the typical home in their local market. Not an extravagant home, not a home that's even above average, just the typical home in their local market, as calculated by Zillow.   Speaker 1 (00:14:31) - That's what's happened to affordability, basically since Covid began about four years ago. So some other takeaways from what I just told you about there. The correlation here is that lower priced metros often have high homeownership rates because they are more affordable. Yet, paradoxically, those places, those low cost places with high ownership rates are often the best markets for you to own rental property in due to that affordability. And this is not just true in the United States. When you look at Europe and we shared a map of this on our general education Instagram page last week, Europe also has higher homeownership rates in less expensive nations, led by Kosovo at an astounding 98% homeownership rate. Can you believe that 98% Kosovo, part of the former Yugoslavia and then Kosovo in the high ownership rate, is followed by Albania in second, Romania and third? And again, today's U.S homeownership rate is nearly 66%. And then, conversely, some of Europe's more expensive nations have the lowest homeownership rates. Switzerland is the lowest at just 42%, and that's followed by Germany in Austria, with the next lowest European homeownership rates with declining US affordability.   Speaker 1 (00:15:59) - I mean, sometimes, do you ever think that it just feels like dollars are losing all of their value? I mean, some of these figures just look like funny money anymore. If you visited U.S Debt Record recently, you'll see that our national debt keeps ticking up, nearing $35 trillion now. Now, I recently listened to two guys talking about rising prices back when they were kids and when they were kids, they thought that meant that the economy is prosperous. Have you ever thought that even as a kid, I didn't. I never thought that rising prices were some sign of economic prosperity, like when you were a kid, that pack of baseball cards going up from. $0.50 to $0.60 symbolize that economic prosperity was taking place somewhere else. I never thought that. I guess as a kid, though, I thought that if a 100 K home increased in price to 200 K, that it meant that it doubled in value, although it surely did not. I probably thought that as a kid before I understood things like inflation and leverage.   Speaker 1 (00:17:11) - But inflation is not some law of nature. Not at all. I mean, if you want to look at what happens is technology progresses. Well, of course prices should go down if we are picking apples by hand and then a machine comes along that picks apples 100 times faster, and you don't need to pay all these human harvesters anymore, well, then the price of apples should plummet. Prices should go way down as we get better at producing things. So just imagine how much higher prices would be today if there weren't these productivity gains that try to hold down the inflated prices just somewhat. My gosh. But instead, governments are incentivized to expand the money supply to pay for programs rather than tax you. What's the easiest way to pay for a $1 trillion federal infrastructure program? Just print a trillion bucks out of thin air. That way they didn't have to send you a tax bill because people don't like seeing tax bills. They didn't have to ask for your vote either. Just quietly print it. And now that they printed $1 trillion more, every single dollar that you're holding on to just got diluted.   Speaker 1 (00:18:29) - That's another reason that inflation is immoral. If you hold dollars in a savings account, fed inflation diluted it. If you hold dollars in a stockbroker as account inflation just diluted it. If you hold equity in a property, inflation just diluted it. Well what hedges you against inflation. Gold and bitcoin. They both break the government monopoly on money. That's just simply hedging yourself. And then what doesn't just hedge but help you profit from inflation. As we know that formula is income property with debt. Now the United Nations, they recognize 193 sovereign states across the world, but many with their own currency. And like I said, governments are incentivized to expand the money supply to pay for programs rather than tax you. It's not just an American thing. Everybody does it. It is just a race to the bottom with every currency, all of which eventually go to zero. Historically, they all have. Well, you and I, we actually gotten richer from our technology advancements in some ways. And at the same time, we are horror for our debased dollars by almost any standard out there.   Speaker 1 (00:19:59) - You and I are both richer than our grandfathers were. The technology is better. The iPhone in your pocket would blow away your grandfather or your great grandfather. But back in my grandfather's day. See, here's the difference. He could pay for both of his kids to go to college and do it without student loans. Grandpa could easily find a job in a factory, bought a house. His wife didn't have to work. He supported his kids. His wife was home so she could take care of the house and kids. We have lost that. That wave of high inflation in the 70s and 80s made it so that both parents had to soon work, eroding the nuclear family. Inflation destroys families because wages often don't keep up. When you have these ways of inflation, both parents work and the wife cooks last, meaning even more obesity. And now, in this era of inflation, the 2020s, the first time homebuyer has instead become the renter so that the median age of the first time homebuyer is now 36, per the Nar, which I think I mentioned on a show last year.   Speaker 1 (00:21:13) - And that number looks to be going higher. So the American dream, owning your home, it looks like that soon won't even begin until you're near 40. And it's not just a result of government inflation. Government regulation has driven up the cost of doing business, hence why the prices are so high. You're seeing more and more evidence of inflation widening this chasm between the haves and the have nots. I mean, Macy's, the department store they recently announced. Plans to reorganize their stores around this hollowing out of the middle class businesses are reacting, and inflation is the problem. In fact, it made a lot of news a few weeks ago. You might have seen this story where, gosh, can you believe that a public figure would say this out loud? Kellogg CEO Gary Pinnick commented on how Americans are dealing with high grocery prices when he was quoted as saying, cereal for dinner is something that is probably more on trend now. And he got blasted for it. From malnutrition to family erosion to unaffordable homes, inflation from the central bank is the culprit and it's reached levels of immorality.   Speaker 1 (00:22:35) - More straight ahead. I'm Keith Whitehouse and you're listening to episode 492 of get Rich education. You know, I'll just tell you, for the most passive part of my real estate investing, personally, I put my own dollars with Freedom Family Investments because their funds pay me a stream of regular cash flow in returns, or better than a bank savings account, up to 12%. Their minimums are as low as 25 K. You don't even need to be accredited for some of them. It's all backed by real estate and that kind of love. How the tax benefit of doing this can offset capital gains and your W-2 jobs income. And they've always given me exactly their stated return paid on time. So it's steady income, no surprises while I'm sleeping or just doing the things I love. For a little insider tip, I've invested in their power fund to get going on that text family to 66866. Oh, and this isn't a solicitation. If you want to invest where I do, just go ahead and text family to six, 686, six.   Speaker 1 (00:23:47) - Role under the specific expert with income property you need. Ridge lending Group Nmls 42056. In gray history from beginners to veterans, they provided our listeners with more mortgages than anyone. It's where I get my own loans for single family rentals up to four Plex's. Start your pre-qualification and chat with President Charlie Ridge personally. They'll even customize a plan tailored to you for growing your portfolio. Start at Ridge Lending group.com Ridge lending group.com. Hi, this is Russell Gray.   Speaker 2 (00:24:27) - Co-host of the Real Estate Guys radio show, and you're listening to get Rich education with Keith Reinhold. Don't quit your day dream.   Speaker 1 (00:24:45) - Welcome back to Jewish Education where we are day trading. We are decade trading. I'm your host, Keith Reinhold. As we approach springtime before your tenant considers moving out, this is the time to remind them of the cost of moving. I've seen landlords effectively do this with a well worded letter. If you're raising the rent, this could accompany that notice. Tell them how costly moving is, because tenants often don't realize that until it's too late.   Speaker 1 (00:25:16) - And moving is also one of the most stressful things that a human can do. Vacancy and turnover are your biggest expense, so you should consider doing this before your tenant makes moving plans, because by then it's too late. Andrew Carnegie said that 90% of all millionaires become so through owning real estate. I could still believe that 90% figure today. But sadly, Carnegie's quote wasn't quite inflation proofed, and I'm sure he would admit that if he were alive today, a net worth of $1 million today does not make you rich. Millionaire. Yeah, not a wealth marker, but it probably means that you aren't poor. But yeah, a millionaire is no longer that aspirational. multi-Millionaire might not be a net worth of $2 million or more if you're under, say, 60, a $2 million net worth, that probably means that you better keep doing something to generate income. Here at gray, we probably spend less than 5% of our content, or even less than 2% of our content here, describing what most people think of conventional investment vehicles like, say, a 401 K or a Roth IRA.   Speaker 1 (00:26:36) - Instead, we follow something more like what Andrew Carnegie said, because being conventional, it just doesn't get you anywhere. And trimming your expenses, that really doesn't move the meter much in your life, unless you do enough of it to make you miserable. Saving money by getting your haircut at home is not going to build financial freedom. How many at home haircuts would you need in order for that to happen? There's no number. Neither will finding a way to get a free Thanksgiving turkey, or saving $90 on a flight itinerary by adding a layover and losing three hours of your time. That's not respecting your own time. So this is why we don't talk about conventional stuff here. Savers lose wealth, stock investors maintain wealth, and real estate investors build wealth. But now really, why else don't we discuss something like the benefits of a Roth IRA or comparing them to a traditional IRA? The main difference there being with a Roth you fund with post-tax dollars, meaning that you pay the tax today versus a traditional IRA where you pay the tax later rather than now.   Speaker 1 (00:27:45) - Well, you can't draw the funds penalty free until you're older, for one thing. And also, if you're under age 50, you can only contribute $7,000 a year to an IRA, and it's a care year if you're over 50. It doesn't move the meter in your life. And also, since we're a show about increasing your income, not cutting your expenses in a don't live below your means, grow your means vein. Well, this year's Roth IRA income limits are 161 K for single tax filers in 240 K for those married filing jointly. All right. Well, if you are not there at that income level yet, you are targeting exceeding those limits. So you won't be qualifying to participate anyway. Even if you had wanted to 401 K's in IRAs, they take money out of your pocket every month and every year. And I said with income property, you made a plan to put more money, tax advantaged money in your pocket every month and year. And this is all why I frown on budgeting, too.   Speaker 1 (00:28:59) - Now, one classic investor axiom that makes a little more sense to me is that you can't time the market. This is precisely why time in the market beats timing the market. Another phrase you've surely heard. I think that another way to say this is take what you've been given. Yeah. In general, once you've got a sound strategy, take what you've been given. The epiphany of real estate pays five ways is a motivator to adding more property. For example, when I bought my first property, yes, that modest and seminal Blue fourplex in 2002, there were pros and cons to buying 22 years ago. Just like there always are. Well, what I did is I took what I was given because I begin to understand how real estate could benefit me. And do you want to know what the market conditions were like back then? Let's look at this and compare this to today's income property market. This will be really interesting. What are the big factors that have changed in 22 years? Well, back in 2002 there were pros, neutrals and cons to buying.   Speaker 1 (00:30:14) - Then back then the pros were a good rent price ratio and I got a historically low six and 3/8 mortgage rate. Yes, I still remember that the neutral back then was an average vacancy rate, and the cons back in 2002 were low inflation, a high housing supply. The fact that I had made a $295,000 full price offer for that fourplex, which felt high at the time. I asked the owner if he'd come down and he said no. And another con is that I own in a small metro area, Anchorage, which was more vulnerable to economic change. That's something that I didn't even realize at the time. And another con to me, buying back then, as successfully as that turned out, was weak. Future demographics. Tenants quickly vacated because it was so easy for them to get first time homebuyer loans, liar loans amidst that loose lending environment. So right there were the pros, neutrals and cons in the marketplace. When I first started out taking what I was given, I took what the market gave me and became a profiteer.   Speaker 1 (00:31:32) - Once I had a strategy. Now this current environment, let's look at it. It could very well be better than when I started out. Here's what the market is giving investors here in the middle of the 2020s decade. The pros are low vacancy, higher inflation, though I would not call it high any longer. Another pro low housing supply. The polar opposite of when I begin there is strong future demographic demand. And another pro is like I've been touching on earlier here in that first part of the show, this dreadful first time homebuyer affordability. And what that does is that increases tenancy duration. Those are the pros today. The neutrals are strict loan underwriting and historically average interest rates okay. So those are both neutral conditions. And then the cons today are lower rent to price ratios and higher insurance premiums. So there they are. They're the progression of pros neutrals and cons in the real estate market. Since I bought my first property in 2002, one has got to own assets. When the middle class is hollowing out, it's caving in.   Speaker 1 (00:32:53) - No one wants to end up as desperate as Google's. I struggling to catch up with Microsoft and OpenAI. We don't want that to happen. And uncertainty. As you think about the future and growing your portfolio, you know, uncertainty that is an ever present condition with zero antidote. Uncertainty will only disappear when the world ends. These factors oppose neutrals and cons. They constantly shift. And in fact, life is about not knowing. The only safe years of your life are past years. Live in the question. Take what you've been given. That's the message here. Like I discussed last week, investor purchases are breaking records in today's environment. And speaking of today's market conditions, let me give you something tangible that you can really sink your teeth into with some real property addresses. These are ones that you find at Gray Marketplace. Let me start with the most expensive one first in San Antonio, Texas. It is a 2024 new build fourplex for a price of $1,100,000. Yeah. Hey, big spender, $1.1 million.   Speaker 1 (00:34:13) - The rent is $7,580. Class A neighborhood 5000ft², three bed, two baths per unit. Gosh, I wish this would have been my first ever fourplex. Mine was two beds, one baths, and when I bought it, it was about 20 years old. Well, the interest rate on this new build San Antonio fourplex is 4.25%. You need to use the seller preferred lender for that you're down. Will be $275. Projected monthly cash flow is $1,413. The second property is at 16 1027 Street Northeast in Canton, Ohio. Yes, canton, Ohio, the home of the Pro Football Hall of Fame, which I visited about five years ago. This is a single family rental in canton. The price is 130 K. The rent is 1125 B class neighborhood 1100 and four square feet. It was built in 1952. It has three beds in one bath. 33 K is the down payment, $279 of projected monthly cash flow. And then the last one that I'll detail here is 8700 East 79th Terrace in Kansas City, Missouri.   Speaker 1 (00:35:35) - It's also a single family rental 213 K purchase price. The rent on it is 1875. And gosh, that is a really good rent to price ratio. They're almost 9/10 of 1% here in Kansas City. B is the neighborhood class. It's 1180 eight square feet built in 1967, four beds, two baths. And it is a down payment of 53 K down with a projected monthly cash flow of $449 there in this Kansas City single family rental. Now you don't want to count on rent increases, but rents in the Midwest are now rising faster than any other region in the whole nation. And that's not hard to do, by the way, because in most U.S. regions, rents are hardly rising at all today. Now, as far as homes built in the 50s and 60s, although it's still good for you to mark more for maintenance expenses on properties of that age. You recall that I said earlier that you're likely doing more decade trading than day trading with these rehabbed or new build investor homes and 7 to 10 years.   Speaker 1 (00:36:55) - That's typically how long you want to plan on holding for, because by that time, or even earlier, it might have been as little as three years here recently. But by that time, sufficient equity has built up so that you want to sell in order to keep your return high and trade up tax free. Well, you only need new or rehabbed systems or components, therefore, to last 7 to 10 years, and you're typically selling the property before you need anything like a new roof or new Hvac. I personally don't believe I've ever held any rental property for more than ten years now, as I gave details of those three available properties there. This really is a time in the market cycle for you to consider new build properties. If you can swing the higher price, and that's for a lot of reasons you probably realize. The first one is that because builders are still buying your rate down for you to under 6%, you saw their with that San Antonio new construction fourplex, how a builder is buying down your rate to 4.25.   Speaker 1 (00:38:02) - Gosh, another trend that's been developing is the new home price. Premium over resale property seems to have declined substantially in the US, but builders just cannot keep doing these rate buy downs forever. Once rates go down, they're going to have less incentive to do them. For one thing, there won't be a need there. And also see, it depends on the builder, but a lot of builders, they bought land back in 2021 that they're only building on today, and those builders got to pay lower 2021 prices for that land that they're now building on. Will in a year or two, when builders are selling property where they had to buy the land in 2023, that is going to be reflected in higher prices in a year or two. So go new build if you can swing it. If not, you've got your 7 to 10 year hold strategy for resale properties, and that's 7 to 10 year hold. Strategy also applies to new builds on a scarce asset that everyone is going to need all 340 million Americans.   Speaker 1 (00:39:12) - And if any of these income properties or ones like those seem interesting to you, go ahead and contact your gray investment coach. If you don't have one, they'll help you for free. And our coaches really just make it easy for you. You can book a time right on their calendar, set up a friendly zoom or phone call, and strategize at Gray marketplace.com. Until next week, I'm your host, Keith Weintraub. Don't quit your day dream.   Speaker 3 (00:39:42) - Nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of get Rich education LLC exclusively.   Speaker 4 (00:40:11) - The preceding program was brought to you by your home for wealth building. Get rich education.com.

In the summer of 2020 deVon Russell Gray, Nathan Hanson and Davu Seru recorded the album "We Sick" in a church in Saint Paul that was available due to the COVID pandemic. The tumult of the summer of 2020 showed up in all sorts of ways on the spontaneously composed recordings. Since the 2022 release of the album, enthusiasm for the work of Gray, Hanson and Seru has increased and they are preparing for another performance Thursday February 29 at Berlin in Minneapolis. Sean McPherson caught up with the group to find out how their music is developing.

Welcome to our fourth annual Top Ten Reads of the Year episode with BookTuber Russell Gray of Ink and Paper Blog! We each talk about our top ten reads of 2023. Some books were published in 2023, and others are a bit older, but they all stirred our hearts and minds and we want to sing their praises. Russell, Emily, and Chris all have such different reading tastes that there is sure to be at least one book in this bunch of 30+ (some people cheated) that you will want to add to your TBR list. We don't know one another's lists beforehand, so this is always an exciting episode for us. We also share some of our favorite Biblio Adventures and three books each that we are looking forward to in 2024. And we announce the first quarter pick for our 2024 Readalong theme, ROMANCE! Top Ten Lists are not just about us – we would love to know what your top 10 reads of 2023 were! If you'd like to share, please add them to this handy Google form: https://bit.ly/BookCougarsListenerTopTenBooksof2023. We'll share Listener Top Ten Reads of 2023 in January.

Jason joins Robert Helms and Russell Gray of The Real Estate Guys as they discuss the investment opportunities in single family housing in the real estate market, highlighting its flexibility, universality, and government backing. Jason suggested that investors should follow the US government's business plan, and emphasized the resilience of the real estate market despite economic challenges. The group also talks about the advantages of negotiating the price and financing of properties, and discussed the importance of understanding the full range of benefits that come with real estate investment. Towards the end, they announced the merger with The Real Estate Guys of a new initiative called “The Collective Inner Circle”, a mastermind group associated with Jason, Ken McElroy, and George Gammon. Jason concludes that investors invest in income property for yield, not appreciation. #RealEstate #Investing #JasonHartman #SingleFamilyHomes #Financing #HousingAffordability #Inflation #Treasury #LeveragedBuyouts #AssetClass #InvestmentStrategy #InterestRates #PositiveCashFlow Key Takeaways: 0:48 A bit of Jason's background 3:28 Why Single Family Homes 6:56 It's all in the numbers and a huge blindspot 14:07 Housing affordability 16:19 Treasuries versus income property 20:47 The Real Estate Guys Joining forces with The Collective Inner Circle 22:42 Invest for yield- not appreciation   Follow Jason on TWITTER, INSTAGRAM & LINKEDIN Twitter.com/JasonHartmanROI Instagram.com/jasonhartman1/ Linkedin.com/in/jasonhartmaninvestor/ Call our Investment Counselors at: 1-800-HARTMAN (US) or visit: https://www.jasonhartman.com/ Free Class:  Easily get up to $250,000 in funding for real estate, business or anything else: http://JasonHartman.com/Fund CYA Protect Your Assets, Save Taxes & Estate Planning: http://JasonHartman.com/Protect Get wholesale real estate deals for investment or build a great business – Free Course: https://www.jasonhartman.com/deals Special Offer from Ron LeGrand: https://JasonHartman.com/Ron Free Mini-Book on Pandemic Investing: https://www.PandemicInvesting.com

Jason joins Robert Helms and Russell Gray of The Real Estate Guys as they discuss the investment opportunities in single family housing in the real estate market, highlighting its flexibility, universality, and government backing. Jason suggested that investors should follow the US government's business plan, and emphasized the resilience of the real estate market despite economic challenges. The group also talks about the advantages of negotiating the price and financing of properties, and discussed the importance of understanding the full range of benefits that come with real estate investment. Towards the end, they announced the merger with The Real Estate Guys of a new initiative called “The Collective Inner Circle”, a mastermind group associated with Jason, Ken McElroy, and George Gammon. Jason concludes that investors invest in income property for yield, not appreciation. #RealEstate #Investing #JasonHartman #SingleFamilyHomes #Financing #HousingAffordability #Inflation #Treasury #LeveragedBuyouts #AssetClass #InvestmentStrategy #InterestRates #PositiveCashFlow Key Takeaways: 0:46 A bit of Jason's background 3:27 Why Single Family Homes 6:55 It's all in the numbers and a huge blindspot 14:06 Housing affordability 16:18 Treasuries versus income property 20:46 The Real Estate Guys Joining forces with The Collective Inner Circle 22:41 Invest for yield- not appreciation   Follow Jason on TWITTER, INSTAGRAM & LINKEDIN Twitter.com/JasonHartmanROI Instagram.com/jasonhartman1/ Linkedin.com/in/jasonhartmaninvestor/ Call our Investment Counselors at: 1-800-HARTMAN (US) or visit: https://www.jasonhartman.com/ Free Class:  Easily get up to $250,000 in funding for real estate, business or anything else: http://JasonHartman.com/Fund CYA Protect Your Assets, Save Taxes & Estate Planning: http://JasonHartman.com/Protect Get wholesale real estate deals for investment or build a great business – Free Course: https://www.jasonhartman.com/deals Special Offer from Ron LeGrand: https://JasonHartman.com/Ron Free Mini-Book on Pandemic Investing: https://www.PandemicInvesting.com

Jason joins Robert Helms and Russell Gray of The Real Estate Guys as they discuss the investment opportunities in single family housing in the real estate market, highlighting its flexibility, universality, and government backing. Jason suggested that investors should follow the US government's business plan, and emphasized the resilience of the real estate market despite economic challenges. The group also talks about the advantages of negotiating the price and financing of properties, and discussed the importance of understanding the full range of benefits that come with real estate investment. Towards the end, they announced the merger with The Real Estate Guys of a new initiative called “The Collective Inner Circle”, a mastermind group associated with Jason, Ken McElroy, and George Gammon. Jason concludes that investors invest in income property for yield, not appreciation. #RealEstate #Investing #JasonHartman #SingleFamilyHomes #Financing #HousingAffordability #Inflation #Treasury #LeveragedBuyouts #AssetClass #InvestmentStrategy #InterestRates #PositiveCashFlow Key Takeaways: 0:51 A bit of Jason's background 3:32 Why Single Family Homes 7:00 It's all in the numbers and a huge blindspot 14:12 Housing affordability 16:26 Treasuries versus income property 20:52 The Real Estate Guys Joining forces with The Collective Inner Circle 22:47 Invest for yield- not appreciation   Follow Jason on TWITTER, INSTAGRAM & LINKEDIN Twitter.com/JasonHartmanROI Instagram.com/jasonhartman1/ Linkedin.com/in/jasonhartmaninvestor/ Call our Investment Counselors at: 1-800-HARTMAN (US) or visit: https://www.jasonhartman.com/ Free Class:  Easily get up to $250,000 in funding for real estate, business or anything else: http://JasonHartman.com/Fund CYA Protect Your Assets, Save Taxes & Estate Planning: http://JasonHartman.com/Protect Get wholesale real estate deals for investment or build a great business – Free Course: https://www.jasonhartman.com/deals Special Offer from Ron LeGrand: https://JasonHartman.com/Ron Free Mini-Book on Pandemic Investing: https://www.PandemicInvesting.com

The Fed can raise interest rates, but they cannot create housing supply.  Housing intelligence analyst Rick Sharga joins us for the second week in a row. This housing market is awful for primary residence homebuyers. But at GRE Marketplace, you can still buy income properties with rates as low as 4.75%. Rick tells us that the most prosperous markets now favor the: Midwest and Southeast, single-family homes, rental property investors with buy-and-hold strategies. National home prices are appreciating modestly. Home sales volume is still down. Investors now account for more than one-quarter of property purchases. Mortgage delinquencies are near an all-time low. Rick and I discuss why this market is so bad for flippers.  High homeowner equity positions ($300K+) support this housing market.  Timestamps: The impact of rising mortgage rates [00:02:37] Discussion on how the Federal Reserve's raising of short-term rates has caused mortgage rates to go up, affecting the housing market. The affordability challenge [00:03:38] Exploration of the impact of higher mortgage rates on homebuyers, particularly first-time buyers, and the decrease in affordability. Low supply of homes [00:08:48] Analysis of the low inventory of homes for sale, with a decrease of 9% from the previous year and 47% from 2019, leading to a challenging market. The mortgage rate lock in effect [00:11:05] Discussion on how the mortgage rate lock in effect can crimp demand but cannot create supply. Hottest markets in the Midwest and Southeast [00:11:05] Analysis of the hottest real estate markets in the Midwest and Southeast regions of the United States. Positive turn in home price appreciation [00:13:06] Explanation of how home price appreciation went down but has recently turned positive again. Housing Permits, Starts, and Construction [00:21:24] Discussion on the trends and levels of housing permits, starts, and construction, and the need for builders to increase production. Investor Activity in the Residential Market [00:22:28] Exploration of the percentage of home purchases made by investors, with a focus on small and medium-sized investors and the misconception of institutional investors dominating the market. Delinquencies and Foreclosures [00:24:36] Analysis of mortgage delinquency rates, foreclosure activity, and homeowner equity, highlighting the low delinquency rates, the presence of equity in foreclosed homes, and the importance of early-stage foreclosure sales. The future direction of rents [00:32:00] Discussion on the potential upward pressure on rents due to low affordability and high homeownership rate. Inventory coming to the market [00:33:03] Exploration of the impact of expensive inventory coming to the market and its effect on rent prices. The overall economy and housing market [00:34:03] Consideration of the possibility of a recession, unemployment spike, and foreclosures affecting the housing market. The coach's role in finding real estate deals [00:43:06] Explanation of how an investment coach can help you find the best real estate deals in the marketplace. Advantages of buying properties from marketplace [00:44:20] Reasons why buying properties from marketplace can lead to good deals, including lower prices and absence of emotional seller involvement. Resources mentioned: Show Notes: www.GetRichEducation.com/467 Rick Sharga's website: CJPatrick.com Rick Sharga on X (Twitter): @RickSharga Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments. You get paid first: Text ‘FAMILY' to 66866 Will you please leave a review for the show? I'd be grateful. Search “how to leave an Apple Podcasts review”  Top Properties & Providers: GREmarketplace.com GRE Free Investment Coaching: GREmarketplace.com/Coach Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold   (00:00:01) - Welcome to. I'm your host, Keith Weinhold. Hold a terrific discussion today on the direction of the housing market, including lessons that you can learn for all time plummeting home sales volume and direly low home inventory. Why home price appreciation is taking place now. Could the government soon penalize you for owning too many rental properties? What's the best place for a real estate investor to position themselves in this era? And more today on Get Rich Education.   (00:00:33) - You're listening to the show that has created more financial freedom than nearly any show in the world. This is Get rich education.   (00:00:56) - Walking from Horseheads, New York to Nags Head, North Carolina, and across 188 nations worldwide. I'm Keith Weinhold. And you're listening. To get rich education, you are going to get a fantastic market update today. And along the way, you'll also learn lessons if you're consuming this 5 or 10 years from now. Our expert guest was with us last week to discuss the economy. This week, it's episode two of two as we discuss the real estate market.   (00:01:25) - He has been the executive VP of markets at some of America's leading housing intelligence firms, and today he's the founder and CEO of Patrick Company, either a market intelligence firm for the real estate and mortgage markets. And he has 20 plus years of experience in those industries. It's the return of Rick Saga Part two of two. It's not imperative that you listen to last week's Part one of two that we can help you see the big picture. Enjoy this long, unbroken interview and then after the break, I'll come back to close it. Just you and I. We're talking with Rick Sagar, expert housing analyst, previously. We talked about the general condition of the economy. And now Rick and I are going to break down the housing market with what's happening there. There's so definitively connected. Keith One of the things to that the Federal Reserve has done by raising those short term rates is caused mortgage rates to go up, right? Mortgage rates tend to run loosely in line with the yields on the ten year US Treasury bonds that we talked about at the end of the first segment.   (00:02:37) - Those are now up around 4%. And typically a 30 year fixed rate mortgage will be between one and a half and two percentage points higher than that yield. So in a normal market, we'd be looking at a mortgage rate today of about five and a half to 6%. Instead because of the risk and the volatility that the market is pricing in because they're not sure what the Federal Reserve is going to do next. We're looking at mortgage rates for a 30 year fixed rate loan of over 7%. The most recent numbers from last week from Freddie Mac, we were at almost 7.2% on that average, 30 year fixed rate loan and 6.5% on a 15 year fixed rate loan. You and I were talking before the show and and you know, historically speaking, if we keep these things in context, we're still actually below the 25 year average, which was 8%. But we have a whole generation of homebuyers who've come of age during the period of the lowest mortgage rates in the history of the country. They got spoiled, they got spoiled.   (00:03:38) - And to be clear, it's one of the reasons that home prices rose as rapidly as they did and got as high as they are is because you could afford to make monthly payments with a two and a half, three, 3.5% mortgage. Now, you still have home prices about as high as they were then, and you have a mortgage rate that's doubled. And for most home buyers, particularly first time home buyers that make your monthly mortgage payment was going to go up by 45 to 60%. And most of us didn't get that 45 to 60% raise last year. It really had a huge impact on affordability. In fact, this is such an unusual occurrence that according to Freddie Mac, it's the only time in US history when mortgage rates doubled during a calendar year and they didn't just double in a calendar year. Keith They doubled in the space in a few months. It was that kind of systemic shock to the system that really hit the housing market as hard as it did. Right. And they've also nearly tripled in a pretty short period of time.   (00:04:35) - Yeah, they really have. And again, going back historically speaking and and get this from Gen Z folks and millennials, when I talk about, you know, the old days of mortgage and I do remember my first mortgage had two numbers to the left of the decimal point. I forget if it was 11 or 12%, but it was something like that. And they basically say, okay, Boomer, but that 11% mortgage was on your $70,000 house, Right. And not, you know, today's median priced home of $430,000 or whatever it is. So it's a fair point. Mortgage rates are not high, historically speaking, but that monthly cost, because of the combination of home prices and higher interest rates, is choking some people and making affordability a problem. And because of that, one of the forward looking metrics that I take a look at is the purchase loan mortgage application index from the Mortgage Bankers Association. So this is the number of people that are applying for loans with the purpose of buying a house.   (00:05:35) - They're off almost 30% on a year over year basis right now. You can see without straining your eyes at all the impact that these higher mortgage rates are having on the housing market. And we had almost record numbers of purchase loan applications from the time people who are allowed out of their house during the pandemic until these mortgage rates doubled from 2020 through the early part of 2022, mortgage rates were in the threes and fours and sometimes even in the twos. Yeah, everyone wants to talk about mortgage rates and it is an important discussion to have here at Marketplace with our investment coaches. Rick Some builders, as you know, they commonly offer rate buy down incentives to buyers of new homes. And what some of our providers are doing here, Rick, is we have one builder where if you use their preferred lender, they're buying down your income property's mortgage rate to 5.75%. And we have another builder where if you use their preferred lender, they're still buying down your mortgage rate to 4.75%. And of course, with Non-owner occupied property here, you know, previously you had talked about mortgage rates in excess of seven.   (00:06:47) - They might normally be about 8% for non owner occupied property, but you're able to buy them down to five and three quarters or even four and three quarters with one of our providers for new builds right now, that's a great deal and your listener should really be taking advantage of those opportunities. We'll get into new homes in a few minutes and what we're seeing builders do for consumers, But have to tell you, those numbers are better deals than consumers are getting right now. And you're being generous when you're talking about private lending rates right now. Most of the lenders I'm familiar with are nine, ten, 11%, depending on the nature of your investment. So your folks are getting a great deal with those rates. We talked about purchase loan applications. The other advanced predictor I look at is pending home sales. These are people that are entering into contracts. The deal hasn't been closed yet. Has it been recorded yet? This comes out from the National Association of Realtors. And those numbers are down on a year over year basis as well.   (00:07:42) - There's a lot of rate sensitivity in the market, though, Keith. And if you go back to March when rates went down just a fraction of a percent, we saw more purchase loan applications. We saw more pending home sales. But as rates have climbed back up over seven, we've seen both of these metrics go down. Yeah. So we're talking about pending home sales. We're talking about sales volume that's down in this discussion, not sales price. And anyone might be hard to say, but when you see sales volume that's down, including pending sales, how often is that due to worse affordability and how often is that due to low supply of homes? Why don't we jump right into that? Keith That's a great segue. And this is a very difficult time in the housing market because it has both of the factors that you just mentioned, two very difficult headwinds for the market to try and overcome. And and we'll get into details on both of those in just a minute. Because of that, existing home sales were down in July and they were down pretty significantly on a year over year basis, about 16%.   (00:08:48) - And that's the 23rd consecutive month where existing home sales were lower than they were the prior year. January was the lowest month of sales this month, and it broke a streak we started this year. I was forecasting that we'd see between 4.3 and 4.4 existing home sales. That's down from about 5.2 last year in about 6.1 million the year before. Right now, we're trending at a little over 4 million existing home sales for the year. So even my relatively low forecast for the year may have been overly optimistic. You mentioned inventory and inventory is a huge headwind for the market. Inventory of homes for sale today is down about 9% from where it was a year ago. It's down 47% from where we were in 2019, which was probably the last normal year we've had in the housing market. In a normal year, we would be looking at about a six month supply of homes available for sale. That's what economists or housing market analysts will look at as a balanced market balance between supply and demand. We're at about two and a half months supply right now nationally and in many states it's much lower than that.   (00:09:56) - So there's just not much out here. And the only reason the inventory number looks as good as it looks and it doesn't look very good is because it's taking a little longer to sell properties once they hit the market. If you were looking at new listing data, it's even worse. There's very little inventory coming to market in the way of new listings, and that's because of the rate increases we talked about a minute ago. 90% of borrowers with a mortgage have an interest rate on that mortgage of 6% or less. 70% have an interest rate of 4% or less. If you're sitting on a mortgage rate of 3.5% and you sell your house and buy a house at the same exact price with a 7% mortgage, you've just doubled your monthly mortgage payment. It's not that people psychologically don't want to trade a low rate for a high rate. There's a financial penalty for them doing so. And until we see mortgage rates come down a bit, probably into the fives, we're just not going to see a lot of inventory coming to market except for homeowners who need to sell or have so much equity and maybe you're going to downsize into a smaller property that they don't care about that kind of shift.   (00:11:05) - Yeah, that is the mortgage rate lock in effect. Perfectly explain. And the Fed with the raising rates, they can crimp demand. But one thing that the Fed cannot do is create supply. As much as you might like to see Jerome Powell in work boots with a nail gun, that just doesn't happen. There's an image for you, for your listeners. Yeah, and I'm not sure I'd want to. I'd want to live in that house. That's not Chairman Powell building, but inspection. Yeah. Good economist. Maybe not a carpenter. We were talking about this a little bit earlier, too. And if you're an investor, this is probably worth noting, whether you're a fix and flip investor or investor who's buying properties to rent out a lot of the interest. This is from the sharing some data from Realtor.com and they've taken a look at where people are searching for properties and where transactions are taking place and they're finding that Midwest Southeast are really the hottest markets, places that are a little off the beaten path, you know, places in New Hampshire and Connecticut and Maine and Ohio and Wisconsin.   (00:12:06) - But interestingly, some of the markets that had been suffering a little bit, they're starting to see a little more interest in whether it's California, but off the coast or markets in Colorado or Washington state. But clearly, a lot of the activity, a lot of the money is moving into the Midwest, in southeast. That's right. With the work from anywhere trend, you might see this small flattening and not as much of a disparity in home prices between markets. You're certainly still going to see that, but that can just help create a mild flattening when it doesn't matter where you live anymore and you can go ahead and purchase in lower cost markets. Yeah, and what I'm sharing now is national home prices, home price. And I'm glad you mentioned what you just did, Keith, because the fact of the matter is this has been a very localized correction. And if you're in San Francisco or San Jose, if you're in Seattle, if you're in Austin, if you're in Phoenix, you're in markets where prices are off 10% or more from peak.   (00:13:06) - If you're in Boise, Idaho, you're off more than 10% from peak of Boise had oil prices go up by 47% in a single year, a year or so ago. So he just overshot the mark. One of the reasons the national numbers don't show more volatility is because of what Keith just mentioned. It's because people are trading in where they are in a high price, high tax state moving into a lower price state and candidly outbidding local buyers and probably overpaying a little bit for those properties. So you're seeing home prices go up in some of those less expensive markets much more rapidly than they would under normal circumstances. And what we're talking about here is national home prices that are appreciating at a modest rate now. Yeah, and they are. So if you look at whether you're looking at the Case-Shiller index, it gets published monthly or the National Association of Realtors data. We saw home price appreciation start to go down last year. It was still positive but going down and that was true until pretty much the end of the first quarter this year when the data went negative for the first time in years.   (00:14:15) - So we were seeing on both a month over month and year over year basis home prices go down and that happened until June, June, things flatlined in July. Prices actually went up ah, year over year. So if you're looking at the median home price compared to the peak price a year ago, it's actually up about 1% from where we were last year, which is kind of amazing. The Case-Shiller index is a little bit of a lagging indicator and it rolls three months together, but it also started to turn the corner with its July report. So after almost a full year of price appreciation coming down and prices in decline, we've seen both of these indexes turn and are starting to go positive. It does show you that there continues to be demand for properties that are brought to market. And while home price appreciation certainly isn't soaring by any means, it's back in positive territory now. And that's something that a lot of people hadn't predicted this year. When the supply of homes is this low, it keeps generating a few bids for any available home.   (00:15:21) - Now, not as many bids as it did back in 2021. But besides generating bids, you have these huge population cohorts of millennials and Gen Zers that are growing, and they're in their prime homebuyer years moving through the system to go ahead and place those bids and keep just modest home price appreciation here lately. That's sort of how I see it. Rick If you want to add any color or thoughts to that, I think you're spot on. Keith It's the largest cohort of young adults between the ages of 25 and 34 in US history. That's prime age for forming a household. 33 to 34 is the average age of a first time buyer right now. And so these people would like to buy a house. And for people who are investing in single family rental properties in particular, at least short term, the affordability issue is something that definitely works in your favor. If somebody was looking to buy a house, they might prefer to rent a house rather than rent an apartment. I've read research that shows somewhere between 20 and 30% of people who had planned to buy have decided to rent for the next year or two while market conditions settle down or while they can put aside more money for a down payment.   (00:16:27) - These market conditions are playing in favor of people who have rental properties to offer. One other metric I'd like to share in terms of home prices, Keith is the FHFa puts out its own index. FHFa is the government entity that controls Fannie Mae and Freddie Mac. So these are your conventional bread and butter, vanilla kind of 30 year fixed rate loans. If you look at their portfolio, home prices are actually up 3.1% year over year. And every sector of the country is showing positive rice appreciation except for the Pacific states and the mountain states. And those are some of the markets we talked about earlier. And even those are very close to breaking even at this point. So HFA breaks it into about ten regions, nine of those ten currently appreciating year over year. Yep, something like that important for you to know again as an investor as to what's happening in your region. Again, whether you're you're planning to sell the property or rent it out. You talked about what builders are doing for your investor folks.   (00:17:28) - Yeah, we're seeing new home sales actually improving to consumers as well for a lot of the same reasons, incentives. So a lot of builders are coming to the closing table with cash. They're paying points on mortgages and getting those rates down where they're short term or long term. They're offering discounts, they're offering upgrades to properties. And so new home sales are still down, but just slightly on a year over year basis and have actually been beating last year's numbers for the last four months. My original estimate for new home sales this year was about 600,000. I think we're going to probably coming closer to 675,000 this year. And the only reason we won't sell more is because the builders aren't building that fast enough. But one of the reasons people are buying these new homes is because that's what's on the market today. People would have bought an existing home, can't find one. Here's the other factor. New home prices are down 16.4% from last year's peak. Now, this is informative. Think this would surprise a lot of people? Well, it surprises me.   (00:18:28) - It should surprise people because new home prices almost always go up, right? This does not mean builders are discounting homes 16.4%. What's happening is they are building less expensive homes, They're less expensive per square foot, and they're building smaller homes. And they're doing that in acknowledgement of the higher cost of financing. That also, by the way, is in sending people to look at these properties as either a starter home or a minor move up kind of property. But it is one of the reasons why new home sales are doing better than existing home sales right now on a percentage basis. That's an interesting number, Rick. A few weeks ago, I shared with our newsletter audience that builders are building homes smaller and closer together, which might be reflected in lower prices, but just didn't think it would be 16.4% lower from peak. Now, if you're doing year over year, it's probably not that big of a drop, but from the peak price we are off. And it is to your point, it's a pretty significant number.   (00:19:26) - It would be a problematic number if it was the existing home market, right, because then you'd be looking at the same property being worth 16% less. But a builder can kind of play with those numbers a little bit. Single family housing starts after falling for quite a while, are now back going back up only slightly from where they were a year ago, but they are moving in the right direction. Multifamily starts have actually tailed off a little bit after reaching record high numbers. There could be as many as a million apartment units coming to market this year. Yeah, which would be an all time record. So we've seen building on those multifamily units slow down a little bit. If you look at at new home starts for single family properties still below where they were a year ago. But again, for the first time in quite a few months, starting to trend up. A couple of things to share with your viewers here, Keith. In terms of construction, we're seeing construction continue to grow in the multifamily market because of all the starts we saw previously.   (00:20:23) - We are seeing single family construction slowed down, but that's because the builders are working their way through a glut of homes that was under construction. So we had a really weird happenstance about a year ago, a little over year, we had the highest number of homes under construction ever. And this data goes back to the early 1970s, and we had the lowest number of completed properties available for sale ever. And a lot of that was due to supply chain delays and to labor shortages. And over the last year to 15 months, the builders have gradually begun working through this glut of homes that were started but not finished. And we've seen the number of completed homes go up a little bit, almost back to normal levels, not quite there. One of the reasons they're not quite there is people are buying these homes before they're completed. They're working with the builder. Buying a home is it's almost ready to go, but still under construction. What's been encouraging, looking into the future is that permitting has increased a bit over the last two quarters.   (00:21:24) - We know builders are betting on the future. They're not necessarily breaking ground on all these properties they have permits for because they don't want to oversaturate either. And they're being very judicious with their building because they got caught with a ton of inventory during the Great Recession that they wound up selling at fire sale prices. But the trends are long term, looking like they're going in the right direction right now for new homes. So to help the viewer and listeners chronologically, we're talking about housing permits followed by housing starts. And then finally, housing construction. Right? Permits are up, starts are up recently, but down year over year. And the construction numbers are getting back close to normal levels. And we need the builders to build more because even before the rate lock effect took effect and existing home inventory got so scarce we didn't have enough housing in the works, we were depending on whose numbers you believe, somewhere between 2 and 6 million units short. We need the builders to come back to market. Note for your folks.   (00:22:28) - Keith Investors continue to account for a fairly significant amount of activity in the residential market. Over a quarter of home purchases 26% in June, which is the most recent data we have, were made by investors and believe this number actually under reports the number of investor purchases because it's from a company called CoreLogic, it's accurate data for what they count, but they only count investor purchases where the buying entity has an LLC and LP Corp kind of entity. And we know that a lot of buyers don't do that who are investors. So it probably understates it. But the fact of the matter is that historically speaking, 26% of residential purchases being done by investors is pretty high number. That's a pretty high number and as you alluded to, is probably actually higher than 26% of home purchases being made by investors. And so the headlines will breathlessly tell you that Main Street is being gobbled up by Wall Street. Oh, I know. And those institutional investors are evil people. They're buying everything that the truth is is completely the opposite.   (00:23:31) - If you look at investors who are buying properties, it's really the small investors who are buying about 46% of those investor purchases and medium sized investors about 35%. If you're looking at the biggest of the big investors, they're buying less than 10% of what's going out today. And they still own collectively about 3% of the single family rental stock. It's the mom and pop investor who continues to drive the market. Yeah, I'm glad you bring this up, Rick, because there seems to be this outsized perception that institutional money through someone like, say, in Invitation homes is just gobbling up all the good investor homes. And and they're really not. It's mom and pop investors that rule. In fact, there's some legislation pending in D.C. right now that's aimed to keep these institutional investors from doing what they're already not doing and have some tax penalties for anybody who owns. Here's the number that's important. More than 50 properties well, Invitation Homes owns significantly more than 50 properties. I know a lot of medium sized investors who own more than 50 properties.   (00:24:36) - Yeah, they're certainly not institutional investors. They certainly don't have a hedge fund behind them. Important again, for folks in this market to be in touch with their legislators and let them know what's really going on in the marketplace so we don't get this kind of bad legislation. It makes it tough for the average investor to really take full advantage of the opportunities that are out there. 100%. Mom and pop investors might need more than 50 units to obtain financial freedom. Yep. Just to wrap up, Keith, a couple of points on delinquencies and foreclosures. I know a lot of investors got into the business, you know, a decade or so ago and there was just a rash of foreclosure activity and you could buy a distressed property by just walking down the street and knocking on doors. It's a little different these days because of that strong economy we talked about earlier. In that low unemployment rate. Mortgage delinquencies are at an all time low. Mortgage Bankers Association reported that the midpoint of this year, at the end of the second quarter, the total delinquency rate was 3.37%.   (00:25:36) - To put that in context, historically the number is somewhere between 4 and 5%. So not only are we not seeing a lot of delinquencies, we're seeing less than we would see normally as seriously delinquent loans. The ones that are 90 days plus past due is as low as we've seen it in probably the last 6 or 7 years. That's really interesting. So not very many homeowners are in trouble with making their payments, which to some people might seem like a conflict with what we described back in the earlier part of the chat about low savings and higher credit card debt. So many of these homeowners are locked in to these really low payments where they got low mortgage interest rates. Plus inflation cannot touch those fixed rate payments. And that's an important point for those people that are in these homes. It would be more expensive for them to go rent right now, probably because they got such a good deal on the mortgage rate. There's usually a pretty strong correlation between unemployment rates and mortgage delinquency rates. So I mentioned that the most recent report had unemployment at 3.8%.   (00:26:37) - I think at the end of June it was a 3.5%. So we might see delinquency rates tick up a little bit. There was also some really bad social media memeing going on during the government's mortgage forbearance program. There was even an economist who predicted that almost everybody who got a forbearance was going to go into default and that would have been a catastrophe. If you look back a little over a year ago, actually more like two years ago when there was there were a lot of people in forbearance. You saw delinquency rates very high, but that was because people were allowed to miss payments. They were just being counted by the industry as delinquent. The fact is that less than a half of a percent, less than one half of 1% of the borrowers who were in forbearance and there were 8.5 million of them have defaulted on their loans. The overwhelming majority have done very, very well with that program. So it really didn't contribute to any kind of delinquency or default activity. So strong economy, extremely high, low quality because lenders really haven't been making many risky loans since the Great Recession.   (00:27:40) - The record amount of of homeowner equity that's out there. Yeah. Is keeping this market pretty solid to the point where foreclosure activity today is still running at a little bit less than 60% of pre-pandemic levels. So in a normal market, about 1 to 1.5% of loans are in some state of foreclosure. In today's market, it's about a half a percent. So we're just not seeing much go into foreclosure and the properties that go into foreclosure. The homeowners have a significant amount of equity. 92% of borrowers in foreclosure have equity in their homes, which is wildly different from where we were during the great financial crisis, when a third of all homeowners were underwater on their loans. At just about everybody in foreclosure was upside down. And people push back at me when I'm out talking at conferences about this. Keith Oh, yeah, they have equity, but they don't have enough equity to make a difference. Oh, yes, they do. 88% of the borrowers in foreclosure have more than 20% equity. That's typically the magic number that a realtor will tell you you need in order to sell your property and avoid any other kind of complications with one of these foreclosures, preventing any sort of fire sale and lowering of prices that makes all home prices go down in a neighborhood where not anywhere near that.   (00:28:57) - No, not at all. And in fact, some other data that I'll share with you and your listeners is that about 62% of the distressed property sales we see right now are properties in the early stage of foreclosure prior to the foreclosure auction, which means these distressed homeowners are protecting their equity by selling the property before it gets sold at a foreclosure sale. And so they're protecting the vast amount of this equity. But if you're an investor in today's market, there's some really important information in what I just gave you. You can't wait for the bank repossession. In this cycle, bank repossessions are running 70% below where they were prior to the pandemic, so there's fewer properties getting to auction because 67% of these distressed property sales are prior to the auction. Properties that get to auction are selling through at about 60% rate. So there's nothing going back to the lenders. So if you want to buy a property in some stage of foreclosure, your best bet in today's market is to get a list of people in the early stages of foreclosure and reach out directly to them.   (00:30:01) - Your second best bet is to get to that foreclosure auction. Be ready to move at the auction, and your worst bet is to wait for the lender to repossess the property. And in fact, I've seen anecdotal data that suggests that those properties are actually more expensive than the ones you could buy from the homeowner or at the auction because the lenders are fixing them up and selling them at full market price. Good guidance for those chasing distressed properties. So that's what's going on in the foreclosure market. I don't see foreclosure activity being back to normal levels until sometime next year. And I don't see activity bank repossessions being back to normal levels even next year. It's a very different marketplace. This is what I was just talking about. Keith If you were to break up what selling and what stage of the foreclosure process right now, about 64% of distressed sales are taking place prior to the foreclosure auction and less than 20%. Distressed sales today are those background properties. So it's a very different world than what a lot of investors grew up in.   (00:31:03) - Rick is about to share his summary with us, his closing thoughts. Before he does that, I've got two questions for you, Rick. I hear some people out there, it seems to be oftentimes the real estate agent type, maybe that's trying to be a big cheerleader for the market. And I hear a few of them say something like, hey, you know what? You better buy now, because when mortgage rates fall, home prices are really going to shoot through the roof. I don't really know that that necessarily happens because when mortgage rates fall, okay, that might increase demand of capable homebuyers, but it should also increase supply. Now, the mortgage rate lock in effect, goes away and more people will want to bring supply onto the market. And I also like to think about what happens when rates are falling. Typically, that means the economy needs help and unemployment might be a little higher. So my thoughts, Rick, are if mortgage rates do fall substantially, that might help home price appreciation a little bit, but I don't see it as any sure thing that that would make home prices go through the roof.   (00:32:00) - What are your thoughts? It's a great question. You make a very logical argument. A lot of it comes down to supply. And that's where I would hedge my bets. I don't think we see a ton of supply come back to market until rates are back in the low fives. So there's a point and a half of interest going from little over seven to maybe 5.5%, where we're probably going to see more buyers come to market than we're going to see inventory come to the market. My other thought we touched on it earlier is with rents. Talk to me about the future direction of rents. They were horribly hot a year or two ago, up 15% year over year. Rents have moderated substantially. But with this really lousy home affordability and a high homeownership rate, it seems like with this low affordability, we're set up for the homeownership rate to go lower in the proportion that rent go higher, which could put upward pressure on rents over time here. What are your thoughts with rents? Yeah, offsetting what you just said is a record number of apartment units coming to market this year.   (00:33:03) - There are likely to be some markets across the country that wind up oversupplied because of the amount of inventory coming to market. Now, don't get me wrong, the inventory coming to market is going to tend to be expensive inventory. And so that in and of itself could make rent prices come up a bit. I do believe in the short term I would tend to agree with you that the lack of housing stock available for people who would like to buy is going to play in the benefit of the folks who own properties to rent. And that will, I believe, be particularly true for people that own single family residential units that are like houses to rent. I guess we're going to split the difference on these two questions. I'm going to mostly agree with you on the second one. I do believe there's a chance prices will go up a little bit more than you think as mortgage rates come down until we get down to about 5.5%, mortgage rates are lower when we see more of that inventory coming to market. And what is the real wild card in all of this, of course, is what happens with the overall economy.   (00:34:03) - Do we enter a recession? Does unemployment spike? If that's the case, that should weaken, demand a bit and you could have a little bit of an uptick in foreclosures, which will weaken the market as well. So a lot of different components at play. And I think what people ask you questions like that, Keith, about, you know, mortgage rates come down, is this going to happen? They kind of oversimplify the equation quite a bit. There are a lot of other variables that go into it. 100%. Why don't you go ahead and share your closing thoughts with us? A lot of stuff we covered, so I won't dwell on too much of this very long. But from my perspective, a recession is still a real possibility. Probably not until next year if we have one. And if we do, it's likely to be pretty mild and fairly short and we shouldn't see a huge, huge spike in unemployment. I do believe that as the Fed decides it's done raising the Fed funds rate and announces that we'll see mortgage rates gradually decline back toward 6% by the end of this year.   (00:34:57) - And we'll be back in the fives next year. And by the way, historically, every time the Fed has stopped raising the Fed funds rate, we have seen mortgage rates come back down. Existing home sales right now are on pace for their lowest number since 2009. Likely, we're going to see somewhere in the neighborhood of 4.2 million existing home sales. But we're likely to see more new home sales than a lot of people had forecast beginning of this year, maybe 650, 675,000 of those sales in 2023. And we've seen prices decline in the new home market, but they might have bottomed out in the existing home market because of the supply and demand thing that Keith and I have kind of beaten to death during this podcast. Again, importantly for this audience, investors continue to account for a very large percentage of residential purchases and a lot of you seem to be shifting toward buy and hold strategies, which again makes ultimately good sense in a market like today's. And then that anticipated wave of foreclosures that all those folks on YouTube were trying to sell you courses to figure out how to maximize never materialized.   (00:35:57) - And at least during this cycle, not likely to any time soon. Probably won't. Yes, A lot of people a couple of years ago, especially on YouTube, were talking about a certain price collapse is coming and it never happened. And I never saw how it would have happened and I never made those sort of dire predictions. Well, Rick, this was a great chat about the overall economy, the housing market and what investors need with the housing market. I'm sure our audience learned an awful lot. It was a terrific update. If our audience wants to learn more about you and kind of wish this chat would just go on and they could learn more about you and engage with your resources. What's the best way for them to do that? Well, you can certainly follow me on social media. I refuse to say my Twitter handle is just Rick Saga. I'm on LinkedIn to hard to find there. You can also check out my website which is Patrick. Com. Enjoy doing these conversations with you Keith.   (00:36:51) - Think the first time we talked you reached out because I had come down like the wrath of God on somebody who was predicting a housing price crash because I didn't see one coming either and thought he was doing investors a disservice. So keep the faith and keep the good fight going. Keith And I'll be here whenever you want to talk. Jerry Listeners can't stop talking about their service from Ridge Lending Group and MLS 42056. They have provided our tribe with more loans than anyone there truly a top lender for beginners and veterans. It's where I go to get my own loans for single family rental property up to four Plex's. So start your pre-qualification and you can chat with President Charlie Ridge personally, though, even deliver your custom plan for growing your real estate portfolio. Start at Ridge Lending Group. Com. You know, I'll just tell you for the most passive part of my real estate investing personally, I put my own dollars with freedom family investments because their funds pay me a stream of regular cash flow in. Returns are better than a bank savings account up to 12%.   (00:38:00) - Their minimums are as low as 25. K. You don't even need to be accredited. For some of them, it's all backed by real estate and I kind of love how the tax benefit of doing this can offset capital gains in your W-2, jobs, income. And they've always given me exactly their stated return paid on time. So it's steady income, no surprises while I'm sleeping or just doing the things I love. For a little insider tip, I've invested in their power fund to get going on that text family to 668660. And this isn't a solicitation If you want to invest where I do, just go ahead and text family to six six, eight six, six. Hi, this is Russell Gray, co-host of the Real Estate Guy's radio show. And you're listening to Get Rich Education with Keith Reinhold. Don't Quit Your Day dream. Yeah, terrific insight from Rick, as usual. It's remarkable how much this interview is aligned with what we're doing here. As Rick discussed how, though, it's a tough environment for homebuyers, it's better for investors, especially for single family rentals and especially in the Midwest and South are core areas.   (00:39:23) - It's a better market for the buy and hold investor than it is for flippers. It's a tough chase for flippers. Sometimes you don't flip the house, the house flips you. There are still so few homeowners in delinquency and foreclosure. Rick believes that when lower mortgage rates come, home, prices could appreciate more than I tend to think. We'll see how that turns out. And, you know, historically here, as we talk about the direction of home prices and the direction of rent growth Now with respect to home prices, when I provided you with the home price appreciation forecast, I keep somewhat undershooting. The market appreciation tends to outperform what I think by just a bit. Back in 2018, 2019, home price appreciation rates, they were just kind of bumping along at 4 or 5%. Back then, interest rates were super low, housing supply was more balanced. And I said right here on this show then about five years ago, that I don't see what will make home price growth like really accelerate or shoot up from here.   (00:40:32) - Well, then we had the pandemic, something that no one saw coming when the pandemic fog cleared. You remember that all here on the show in late 2021, I forecast 9 to 10% home price appreciation for the coming year, which back then I was talking about 2022. And then that appreciation rate for 2022 came in at 10.2%. Although I was close, I shot just a touch low. Now at the end of 2022, well, about nine months ago, I predicted zero home price appreciation for this year. As we near the fourth quarter, it looks like we'll get low single digit appreciation, but that remains to be seen. However, I've long been undershooting the market just a bit, though. Close and mortgage rates. No, don't even ask me. I don't try I don't make mortgage forecast. That is too hard to do. Making a mortgage rate prediction is almost like a certain way to be wrong. Although Rick and I talked about how this is a good market for investors, to my point from last week, in some markets, cash flow has become an endangered species with some of these increasing expenses for investors.   (00:41:46) - And again, I have some really good news for you here. We have largely solved that problem here at Gray of higher mortgage rates, hurting your cash flow. And that's why investors like you are still snapping up rental properties from Marketplace right now because of the strength of our marketplace network and relationships. Here we have a new build provider offering a mortgage rate to investors of 5.75%. Yes, they will see that your rate is bought down to 5.75%. In today's environment, another new build investment property provider is offering a rate buy down to 4.75%. Yes, you heard THAtrillionIGHT? And we have another builder provider where our investment coaches have been sharing with you a 2.99% seller financing option. There is more to it than that. And these builders, though they are in business to move property. So take advantage of it where you can. And besides buying down your mortgage rate for you like that, some are even waiving their property management fee for you for the first year. In addition to buying down the rate. I don't know how long all that's going to last, so this can be a really good time for you to contact your in investment coach.   (00:43:06) - Your coach will help you shop the marketplace properties, tell you where the real deals are and tell you how to get those improbably low mortgage rates for income properties. Today, your coach guides you and makes it easy for you If you don't have an investment coach yet, just go to Marketplace. Com slash coach and they're there to help you out. And marketplace properties they are often less expensive than elsewhere in addition to the low rates from some of the providers. But now you might wonder why often are the prices not always, but often, why are they lower? Well, first of all, investor advantage markets just intrinsically have lower prices than the national median. And secondly, there is no real estate agent to compensate with the traditional 6% commission, you are buying more directly. Thirdly, these property providers, they are not. And pop flippers that provide investors like you and other people where they just flip like one home a year instead. These are builders and renovation and management companies in business to do this at scale so they get to buy their materials in bulk, keeping the price lower for you.   (00:44:20) - And another reason that you tend to find good deals at Marketplace is that you aren't buying properties from owner occupants where their emotions get involved and they get irrational over there on the seller side. So you can go ahead and get started with off market deals at GRI, marketplace.com. If you'd like the free coaching from our investment coaches, then contact your coach. And if you don't have one yet again you can do that straight at GRI marketplace.com/coach that's an action item for you this week that your future self should thank you for until next week. I'm your host Keith Winfield. Don't quit your day dream.   (00:45:04) - Nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of Get Rich Education LLC exclusively.   (00:45:32) - The preceding program was brought to you by your home for wealth building get rich education.

You may have heard whispers about the dollar crisis that is leaving many people wondering about the fate of the US dollar… In a time where interest rates have been skyrocketing and US debt is massively increasing… I need to feel secure in my investments and how I am leveraging my assets. There are three components that drive prices: inflation, supply and demand, and leverage. That's why, today, I'm interviewing Russell Gray of The Real Estate Guys who has been in the financial sector since 1986 and understands all things economics to explain what to do when the economy is uncertain. Russell breaks down the history of interest rates and the banking system, pointing out the trends that have led to inflationary periods and why the US dollar has weakened. In recent years, the formation of the BRICS coalition has also shined a spotlight on the importance of understanding currency, gold and energy. The freedom that drove the US to become the most powerful and influential country in the world is being questioned and, with that, the strength of the dollared is being tested. So tune in today if you want to know how to protect your wealth from high interests, inflation and the dollar crisis. Take control, Hunter Thompson Resources mentioned in the podcast: 1. Russell Gray Website Email Interested in investing with Asym Capital? Check out our webinar.   Please note that investing in private placement securities entails a high degree of risk, including illiquidity of the investment and loss of principal. Please refer to the subscription agreement for a discussion of risk factors. Tired of scrambling for capital?  Check out our new FREE webinar -  How to Ensure You Never Scramble for Capital Again (The 3 Capital-Raising Secrets). Click Here to register.   CFC Podcast Facebook Group

Get our newsletter free here or text “GRE” to 66866. Higher interest rates are cracking the economy—failing banks and failing commercial RE loans. With many expecting rates to go much higher, what else will break? Keith Weinhold, the host of the Get Rich Education podcast, discusses the current state of interest rates and their potential future trajectory.  Jim Rogers, legendary investor with an estimated $300M net worth, returns. He shares his insights on interest rates and inflation.  We discuss the impact of inflation on various asset classes, including real estate, and the potential for higher interest rates in the future.  The conversation also touches on topics such as agricultural real estate, the oil market, central bank digital currencies, and the role of gold and bitcoin as alternative forms of wealth storage.  Overall, the episode provides valuable insights into the current economic landscape and its implications for investors. Title [00:01:56] Introduction and overview of the current state of interest rates and market distortions. Title [00:05:03] Discussion on the unpredictability of interest rate predictions and the acknowledgment of inflation by Jerome Powell. Title [00:08:28] Explanation of the historical trend of interest rates, the recent rise in rates, and predictions for future rate movements. Title [00:12:09] Jim Rogers on Borrowing Money and Interest Rates Discussion on the benefits of borrowing money at low interest rates and the prediction of interest rates going higher. Title [00:14:27] Jerome Powell and the Possibility of a Soft Landing Questioning whether Jerome Powell can raise interest rates enough to control inflation without causing an economic crash. Title [00:18:41] Inflation, Interest Rates, and Real Estate Exploring the impact of inflation and interest rates on real estate investments and the potential risks for property owners. Topic 1: Agricultural Real Estate [00:22:21] Discussion on the opportunities in agricultural real estate due to erratic weather patterns and reduced yields in various crops. Topic 2: Oil Market [00:24:16] Conversation about the current state of the oil market, the decline in known reserves, and the potential for higher energy prices. Topic 3: Central Bank Digital Currencies (CBDCs) [00:26:04] Exploration of the proliferation of CBDCs and the implications of a digital currency controlled by central authorities, including potential restrictions on spending and increased government control. Title [00:32:06] History of Money and Gold Standard Discussion on the different forms of money throughout history and the transition from silver to gold as the basis for the US currency. Title [00:32:47] The Diminishing Value of the Dollar The prediction that the value of the dollar will continue to diminish over time and the suggestion to invest in real estate instead of saving in dollars. Title [00:33:33] Invest in What You Know Advice for investors to only invest in what they know about and not rely on advice from others, emphasizing the importance of knowledge and understanding in investment decisions. Resources mentioned: Show Notes: www.GetRichEducation.com/457 Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Find cash-flowing Jacksonville property at: www.JWBrealestate.com/GRE Invest with Freedom Family Investments. You get paid first: Text ‘FAMILY' to 66866 Will you please leave a review for the show? I'd be grateful. Search “how to leave an Apple Podcasts review”  Top Properties & Providers: GREmarketplace.com Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold   Complete episode transcript:   Speaker 1 (00:00:01) - Welcome to GRE. I'm your host, Keith Weinhold. Interest rates rose fast last year, but a lot of experts think that they're going to go substantially higher from today's level, including our guest today, who is a legendary investor. How much higher will rates go and what's driving them higher today on get rich education.   Taxes are your biggest expense. The best way to reduce your burden is real estate. Increase your income with amazing returns and reduce your taxable income with real estate write offs. As an employee with a high salary, you're devastated by taxes. Lighten your tax burden. With real estate incentives, you can offset your income from a W-2 job and from capital gains freedom. Family Investments is the experience partner you've been looking for. The Real Estate Insider Fund is that vehicle. This fund invests in real estate projects that make an impact, and you can join with as little as $50,000. Insiders get preferred returns of 10 to 12%. This means you get paid first. Insiders enjoy cash flow on a quarterly basis, and the tax benefits are life changing.   Speaker 1 (00:01:10) - Join the Freedom Family and become a real estate insider. Start on your path to financial freedom through passive income. Text Family to 66866. This is not a solicitation and is for accredited investors only. Please text family to 66866 for complete details.   Speaker 2 (00:01:33) - You're listening to the show that has created more financial freedom than nearly any show in the world. This is Get rich education.   Speaker 1 (00:01:56) - Welcome to GRE! From Mount Washington, New Hampshire to Mount Whitney, California, and across 188 nations worldwide. I'm Keith Whitefield and you are listening to Get Rich Education. Hey, it's great to have you back. Interest rates are not high today. They're just moderate by historic standards. But of course, the rapid rate of increases last year was faster than it's ever been in our lives. And that's what introduces market distortions. Today's guest is going to talk about that with us later. That's the legendary Jim Rogers. And it's public information that he has an estimated $300 million net worth. When Jim talks, people listen. When he was here with us in 2019, he was emphatic that interest rates were going to go much higher.   Speaker 1 (00:02:43) - He was completely correct. And few others were saying that then. In fact, when he's with us here shortly, all recite the interest rate quote that he stated here on this show back then and get his forecast from this point on as well before discussing interest rates a quarter recently ended. So let's whip around the asset classes as we do here at times, because you need to be able to compare real estate with other investments. The first half of this year, the S&P 500 was up a fat 17%. I'm just running to the nearest whole percent here. The tech heavy Nasdaq index had its best first half of the year in four decades. Gold was up 6%. Oil was down 34%. Bitcoin up an astounding 84% the first six months of the year. And that's partly because it really bottomed out near the beginning of this year per Freddie Mac. The 30 year fixed mortgage began the year at 6.5%, and now it's up to 6.7 for real estate. Since it lags, we've got a realtor.com year over year figure.   Speaker 1 (00:03:48) - The median listing price was up 1% to 440 K financial institutions aced their Fed stress test that they call it that measures how banks are holding up during a downturn. Q1 GDP was revised way higher than they previously calculated, so the economy is doing even better than many thought. And the number of Americans that are filing for new unemployment claims that fell the most in 20 months. So therefore, the economy is still hot by a lot of measures. Well, that puts more upward pressure on interest rates. Well, an interest rate that can be thought of as your cost of money, and they can even affect factors beyond the economic world. For example, in demographics, I mean, historically high interest rates, they've actually been a mild impediment to people's very migration and mobility. Understand the Fed's interest rate predictions and really all of their predictions have been awful, just awful. A long line of them. Fed Chair Jerome Powell's inflation is transitory. I mean, this is the latest notable one. He said that in 2021.   Speaker 1 (00:05:03) - I mean, though, look on your phones weather app, you don't trust the weather forecast ten days into the future. So I don't know why we would listen so intently, even reverentially to what the Fed economists predict for the next month or the next year. I mean, the economy can have as many or more variables than the weather. I'm going to assume. And these people know nothing Volcker, Greenspan, Bernanke, Yellen, Powell. They know nothing but see, they act like they know. So I just sort of wish they'd say we don't know more often. And by the way, this is why I do not predict interest rates like virtually everyone else. I know nothing on that. I joke around and I say I will let someone else be wrong and go ahead and predict interest rates. It's really hard to do now. A little credit to Jerome Powell later on, though, he did acknowledge that they ought to stop calling inflation transitory. So I think the word transitory has different meanings to different people.   Speaker 1 (00:06:08) - To many, it carries.   Speaker 3 (00:06:09) - A time, a sense of of short lived. We tend to to to use it to mean that that it won't leave a permanent mark in the form of higher inflation. I think it's it's probably a good time to retire that that word and try to explain more clearly what we mean.   Speaker 1 (00:06:26) - Another credit to Powell in today's Fed is that they'll tell you what interest rate decisions they plan to make at upcoming meetings, which is certainly a welcome departure from the opaque Alan Greenspan where you needed to try to translate his Fed speak. So if the Fed rate goes higher, then you can generally expect other rates to go higher. The prime rate mortgage rates, credit card interest rates, automobile loans and more. Jim Grant. Who's been running the interest rate observer since 1983. He recently said that we are embarking into a long era of higher interest rates. He says that that's due to inflation and asset price speculation and of course rates wouldn't move up in some sort of straight line from here. During recessions, interest rates fall.   Speaker 1 (00:07:14) - Well, in that case, if you had recessions during a longer term up spell, where you'd have is higher interest rate lows in a recession. Now, starting in 1958, something strange happened in America. In a recession, prices did not fall into many. This marked the beginning of the age of inflation. That was 65 years ago. So you're pretty used to that. If there is a recession, prices don't fall. All right. Well, after that period, rates went up, up, up until they peaked in 1981. And then they went down. Rates fell from 1981 until 2021, and now they have begun to rise again. Well, because artificially low rates that were set to deal with Covid, because they're still recent, I mean, many people have this sort of muscle memory of zero zero interest rate policy. Maybe you do, too. And it was an all you can eat buffet table of credit. And that buffet table was open for business for ten years. Well, now that we've hiked up the Fed funds rate from 0 to 5%.   Speaker 1 (00:08:28) - All right. Well, back on June 28th, Powell said that more restrictive policy is still the COB because they're continuing to fight inflation. And that includes the likelihood of quarter point interest rate hikes at consecutive meetings and two or more increases by the end of this year. Now, our frequent macro economist contributor here on the show, Richard Duncan. He says there is an unusual divergence between weak credit growth and solid economic growth. And that was probably brought about by the surge in savings from people's government checks during the pandemic. Well, if that divergence persists, then the Fed might have to raise rates even more than the half percent plus that they suggested is necessary by the end of this year. And Duncan says that the stock market is not prepared for the Fed rate to go from 5% today up to 6%. And if it does, the stock market could be in for a painful correction in the months ahead. Now, to my point about interest rates being hard to predict, some economists think that rates will generally fall after this year as well.   Speaker 1 (00:09:34) - So some people see it that way, but I think there are more now predicting that they will rise rather than fall. As the legendary investor that predicted that interest rates were going to go way higher when he was back here with us in 2019 is he joins us soon. We could have some challenging audio quality on this remote to Singapore, but people really hang on what Jim has to say. That's next. I'm Keith Wild. You're listening to episode 457 of Get Rich Education. With real estate capital Jacksonville. Real estate has outperformed the stock market by 44% over the last 20 years. It's proven to be a more stable asset, especially during recessions. Their vertically integrated strategy has led to 79% more home price appreciation compared to the average Jacksonville investor since 2013. Genevieve is ready to help your money make money and to make it easy for everyday investors. Get started at GWB real Estate. Agree that's GWB Real estate agree Jerry Listeners can't stop talking about their service from Ridge Lending Group and MLS 42056. They've provided our tribe with more loans than anyone.   Speaker 1 (00:10:49) - They're truly a top lender for beginners and veterans. It's where I go to get my own loans for single family rental property up to four plex. So start your pre-qualification and you can chat with President Charlie Ridge personally, though, even deliver your custom plan for growing your real estate portfolio. Start at Ridge Lending Group. Hi, this is Russell Gray, co-host of the Real Estate Guys radio show. And you're listening to Get Rich Education with Keith Reinhold. Don't Quit Your Day Dreams. Today's guest is one of the most esteemed celebrated and legendary business moguls, investors and financial commentators of our time. He co-founded the Quantum Fund, one of the world's first truly global funds. He's created his own commodities index, his own ETF, and he is a popular author of a great many books. Welcome back. For your third appearance on Jim Rogers case. There's no reason to go into all that. I'm just a simple Earth. That's why people like listening to you, because you rather plain spoken on what some people deem to be some pretty complex concepts.   Speaker 1 (00:12:09) - So it's good to have you here joining remotely from where you live in Singapore. You were here with us in both 2019 and 2021 and in 2019 here on the show you said and I've got the quote right here, if you can borrow a lot of money for a long period of time at low interest rates, rush out and do it right now, That's what you said. That was prescient. And also in 2019 here on the show, you said, and I quote again, interest rates are going to go much, much, much higher over the next few decades and it is going to ruin a lot of people. And here we are today. So what are your thoughts with regard to interest rates and inflation here? Jim.   Speaker 4 (00:12:52) - You make many mistake. Please. It's made many, many mistakes and I'm sure hope I live long enough to make many, many more mistakes. Yes, interest rates are up. They're up substantially. It sent them, but it is not over yet. Interest rates will go much, much higher because we have friend, not just we, but central banks everywhere have printed huge amounts of money.   Speaker 4 (00:13:17) - And whenever you print lots of money, inflation, college interest rates go higher and the usual amount of money inflation gets very high. And that always leads to central banks having to raise interest rates too high level because they don't know what else to do. In 1980, before you were born, interest rates on central US government Treasury bills, 90 day Treasury bills, interest rates were over 21%. Gosh, that's not a typo. 21% because inflation was out of control and we had to take drastic measures, which meant you have to do something like that again.   Speaker 1 (00:13:58) - That would be interesting. So to bring us up to where we are right now, the federal funds rate is basically gone from 0 to 5% since last year. Mortgage rates rose from 3% to 7% just last year alone. And a lot of nations are jacking up interest rates. Turkey just decided that they are going to raise interest rates 6.5% all at once. And some people don't think that is enough. So here we are. I mean, you talked about what happened about 40 years ago.   Speaker 1 (00:14:27) - Can Jerome Powell engineer a soft landing? Does he have any chance of doing that where he can raise rates enough to quell inflation but yet not crash the economy?   Speaker 4 (00:14:37) - No, of course not. First of all, in 1980, America was still a creditor nation. Now with the largest detonation in the history of the world. Yeah, that's staggering. And they go up every week, and the amount of money that's been printed is beyond comprehension. I don't know how they can solve this problem without really getting drastic and taking interest rates to very high levels back in 1980. The Federal Reserve had the support of the president. The president told him to do whatever you have to do because the head of the central bank was all over. It was a smart man. He knew what he had to do, but he made sure he had political support before he did it. Now, the president did not get reelected because Volcker did what had to be done. We don't have as smart a central bank head now as we did then.   Speaker 4 (00:15:31) - And the amount of money that's been printed is overwhelming. And America's debt with the largest detonation in the history of the world and we were a creditor then. So there are things that are different. So he would be worried if I were you. In fact, I am worried, so I'll leave it to you. But I'm more.   Speaker 1 (00:15:50) - Well, that's right. Carter was a one term president. We'll see if Jerome Powell ends up breaking too many things. If Biden only ends up being a one term president, then as well, whether it's his fault or not, oftentimes the onus could fall on him. You bring up all this debt, the greatest detonation in the history of the world. And maybe the first time you and I spoke back in 2019, I don't know what our debt was then. Maybe it was 25 trillion. Now it's more than $32 trillion. Maybe just as concerning. More our debt to GDP ratio is about 121%. So I guess really what I'm getting at, Jim, is how will we know that things break and things are already breaking in a world of higher interest rates with failing banks and more stress in the commercial real estate market.   Speaker 1 (00:16:37) - So what else is going to break?   Speaker 4 (00:16:40) - Jimmy Carter did say to go do whatever you have to do and I will go you. I doubt Biden would say to the central bank, do whatever you have to do without or you. And I doubt if the central bank Powell, the head of the central bank, now really comprehend what he's gotten us into. You know, he kept saying all along, oh, don't worry, everything is under control. The secretary of the Treasury, Janet Yellen, he's got Ivy League degrees, also kept saying, don't worry, everything is under control. We know what we're doing. We do have different people this time, not many Paul Volcker's that comes along in history. To me, the indications are going to get worse. They will not solve the problem until we have a very, very serious problem. I'm not optimistic. Having said that, if I'm not selling short or anything else at the moment, I'm worried about the markets in a year or two. But at the moment, since nobody seems to understand what they're doing at the Reserve or in the presidency, we can have okay times for a while, but the ultimate problem gets worse and worse and worse unless you deal with it.   Speaker 1 (00:17:56) - I don't know whether the economy has been slowed down enough yet or not. So in the midst of higher interest rates, we continue to create an awful lot of jobs. But there's a greater body of work that shows a lot of these jobs are just jobs that have recovered, that were lost in the pandemic.   Speaker 4 (00:18:13) - The economy is not bad in the US, economy is still strong. You mentioned office. You'll have a lot of jobs. ET cetera. Yes, we have inflation, but inflation is not as bad as it was in the 70s. And you look out the window and everything seems okay. At the moment. I'm just worried about what's coming down the road because I know that some throughout history, if you print a huge amount of money, you create big problems.   Speaker 1 (00:18:41) - We are avid real estate investors here directly investing in real estate. And as we have this chat about inflation and interest rates is real estate investors, ideally we would have low interest rates and high inflation. However, those two are positively correlated.   Speaker 1 (00:18:57) - You typically have both high interest rates and high inflation or low interest rates in low inflation. That positive correlation.   Speaker 4 (00:19:05) - Inflation always in the history has led to higher interest rates for a variety of reasons, which I'm sure you understand. If history is any guide, interest rates are going to go much, much higher eventually. And then you know very well I interest rates are not good for property, not good for real estate investors. They never have that. Even if you don't have any big debt and you don't have that problem or mortgage problems or anything, maybe your neighbors do. And if your neighbors have problems, that means their property prices will go down and that's going to affect you because you're nearby and everybody will say, oh, that property is collapsing. What about teeth? And teeth can say, Oh, no, don't worry about me. I don't have any debt. They'll say, okay, you don't have any debt, but we can buy property in your neighborhood. Very cheap because your neighbors have problems.   Speaker 4 (00:20:06) - That gives you a problem.   Speaker 1 (00:20:08) - That's right. Fortunately, Americans have plenty of protective equity in their properties despite these higher rates. You know, residential real estate here in the second half of 2023 is still doing just fine, probably because there's still a scarce supply of residential real estate. You've got more people working from home driving demand for residential real estate. But of course, office real estate has probably been hit the worst, crunched by high interest rates and the work from home trend both. So really that's where we've seen so many of the cracks in the real estate world, especially around the office space. Where else might we see cracks as interest rates continue to go higher like you think they will?   Speaker 4 (00:20:46) - Well, again, throughout history, when interest rates go higher and it attracts investors and money and people take their money out of property or stocks or whatever with their money and say yielding is you can buy the Treasury bills at 21%. That's attractive to a lot of people. And that's, you know, risk free and it's very high return.   Speaker 4 (00:21:12) - So as interest rates go higher in attracts money from other investment classes in other areas, it's very simple. People are not that dumb. We know that if we can get high interest rates safe, they will do it. And we have to take a risk and the stock market or something else for that spike to do.   Speaker 1 (00:21:33) - Sure. Higher rates just incentivize a few more people to be savers as they can now safely get above 4% in these online bank accounts today, where they are getting pretty close to 0% just a couple years ago. We talk about real estate investment. Oftentimes here we talk about improved property on a piece of land. But of course, the more traditional use of real estate is growing crops on a piece of land. And I know you've been a long time agricultural investing enthusiast and a thought leader in agricultural real estate investing. What are your thoughts about agricultural real estate, since in these past few years really we've seen more of these erratic weather patterns that have resulted in things like reduced peach yields in Georgia and reduced ores yields in Florida.   Speaker 1 (00:22:21) - Something else, Jim, we've seen reduced coffee yield in Panama, that last one, that's sort of a fractional ownership investment that we featured on the show here. Fractional ownership investment in coffee farm parcels in Panama. That's created some problems with their yield. Of course, you can see that reflected in the low levels of the Panama Canal as well that looks to threaten the economy. But what are your thoughts about agricultural real estate in this erratic weather that we've had? Perhaps that's an opportunity if that's reflected in lower agricultural real estate prices?   Speaker 4 (00:22:52) - I'm optimistic about agricultural land prices because, you know, for a long time, nobody wants to be a farmer. The average age of farmers in America is 58. The average age in Japan is 66. Mean, I can go on and on. Although the highest rate of bankruptcy in the UK is in agriculture. So agricultural disaster worldwide for a long time and disaster usually leads to great opportunities. If you know how to drive a tractor, if you should go buy yourself some farmland and become a farmer, if you like getting hot and sweaty every day, it can be a very exciting way to live.   Speaker 4 (00:23:38) - I just see I know from history when something gets very bad for a long time, it usually leads to a great opportunity.   Speaker 1 (00:23:48) - Well, you are so experienced in commodities trading in the number one, the most traded commodity in the world is oil. And it seems that the oil price really isn't very high now, especially when you adjust that for all the inflation that we've had the past few years and of course the oil market and the oil price drives the prices of so many other downstream products. So what are your thoughts with regard to the oil market and where we're headed there? Jim.   Speaker 4 (00:24:16) - I know that known reserves of oil have peaked and are in decline just about worldwide. Does it mean it has to continue going up? But unless somebody finds a lot of oil quickly in accessible areas, the price of energy undoubtedly will go higher. The price of energy is going to stay high. Oil and natural gas, whether we like it or not, and I know we don't like it, but unless you wave a magic wand and you know, in Washington, they keep doing things that they don't help the supply of energy, they they damage it because they put restrictions and controls on energy.   Speaker 4 (00:24:55) - So unless something happens somewhere in the world pretty quickly, energy is not going to be cheap.   Speaker 1 (00:25:01) - Renewables like solar and wind may be the future, but oil has a high degree of energy density that a lot of those renewables still don't. We're talking with legendary investor Jim Rogers. He's joining us from Singapore. You talked about all this dollar printing, which has created inflation. And in order for central governments and central banks to get more control over people, discussion with Cbdcs central bank digital currencies has really percolated quite a bit in the past few years here. And with your international perspective, your world view. I'd like to know what your thoughts are on Cbdcs, whether you see a proliferation of it, where you see it starting for those that aren't aware of it. Central bank, digital currencies. That gives a government central control where all money is digital issued by the central authority, where your money can be stored digitally on your phone so that a central authority like a bank or a government can have control over you.   Speaker 1 (00:26:04) - For example, if your local economy is sagging, well, the government could tell you through your cbdc, your central bank, digital currency, for example, that you need to spend 30% of your income within a ten mile radius or else your money expires. Or this would give central authorities power to do something like say, you know, there's a curfew so you can't spend any of your money after 9 p.m. or this is where they could push ESG, environmental, social and governance agendas through targeting your spending or targeting your spending through diversity, equity and inclusion and getting more control that way through Cbdc. So what are your thoughts with the proliferation potentially of Cbdcs, Jim?   Speaker 4 (00:26:44) - We're all going to have digital money in the future, whether we like it or not. It already happened and China's way ahead of it. You can't take a tax in China with money. You have to have your digital money. Your own money. Yeah. And the ice cream in China with money. So it is happening. And nearly every country is working on computer money.   Speaker 4 (00:27:06) - Let's call it whatever you want to put your money. And governments love computer money is cheaper. It's easier. They don't have to transport it all they love. But mainly they love it because they've complete control over all of us. As you point out, they know everything you do. They'll call you up one day and say, Keith, you've had too much coffee this month. Stop drinking so much. Whatever it is, they love control and they love knowledge. I don't, but they do. So this is the world we're coming to. None of us will have money in our pockets except on our own. And yes, that's the new world. It's not far away in 2023. Okay. Anything that's not good for the citizen, Washington will catch up very fast if it's good for them. So no money is coming.   Speaker 1 (00:28:00) - Yeah. Let's hope the cbdcs don't turn up the coffee for anybody. This might make one wonder, you know, what can they do about it is you see more cbdc sentiment building in other nations with them potentially doing something like this.   Speaker 1 (00:28:15) - Is it a smart thing then for someone rather than store dollars, to instead borrow dollars by having loans on real estate? Or is it better to just completely be out of the government system of currency issuance or at least park more of your prosperity outside of the government system of dollars and euros and pesos and riyals and yen, and instead into a non governmental alternative like gold or Bitcoin. Would that be a better path? What are your thoughts there?   Speaker 4 (00:28:44) - When the government says, okay, now this is money, they're not going to say, okay, but if you want to use that money over there, use their money. We don't care. Governments love control and they love Monopoly, especially when it comes to money. So there may be competing types of money that you dollars now anyway. I guess you and I could swap gold coins or seashells or something if we wanted to. Most of the people in the US use government money and that's the way it's going to be. Whether we like it or not, the government has the monopoly.   Speaker 4 (00:29:22) - They have the guns. And if you can say, All right, I'm not going to use government money, I'll say, okay, but you're not going to be able to pay your taxes, then you're money. You're not going to be able to buy a driver's license or pay your other fees with other money. You're going to have to use government approved money.   Speaker 1 (00:29:42) - Well, the government tried to shut down ownership of gold like they did previously or Bitcoin, which would be unprecedented. I'm talking about the United States government, especially in this case or other developed economies.   Speaker 4 (00:29:54) - But when the US took away the right to go in 30s, that was gold was the basis for. Monetary system. It is much, much, much more important to the world economy. Then gold is not that important in the world's economy now. It's important, but so is right. So a lot of stuff. So I doubt if they will take gold away again. I don't see them outlawing digital money currency unless it becomes very successful and competitive to the government.   Speaker 4 (00:30:30) - Then they'll do. They always have.   Speaker 1 (00:30:33) - Bitcoin's market cap is still under $1 trillion, but increasingly you do have more and more politicians that own Bitcoin and there are a few advocates for Bitcoin there in Congress. So if that's the change you want to see, maybe you want to vote in people that are promoting the holding of prosperity outside of US dollars really by being Bitcoin advocates in Congress there. That's one thing that you can possibly do. But we talk about gold and silver. You know, I really like the fact that it is scarce. Just like Bitcoin has scarcity. There will never be more than 21 million Bitcoin. And of course gold and silver have a finite supply.   Speaker 4 (00:31:14) - Well, but first of all, please remember many digital currencies, not Bitcoin, but many have already disappeared and gone to zero.   Speaker 1 (00:31:23) - And there are some Bitcoin critics out there that say something like, well, there have been more than 20,000 cryptocurrencies. So what makes Bitcoin any better? Well, I think the fact that a lot of these cryptocurrencies that have little or no utility or mean coins, so if they come by and then they die, I don't think that should diminish Bitcoin in its utility in any way.   Speaker 1 (00:31:42) - Just like there have been over 20,000 stocks in history. And if a new stock comes by that doesn't have any value or any fundamentals and it fails, it doesn't diminish the market cap leader Apple one bit at all. So I don't think it's a valid comparison to say that just because a new cryptocurrency comes and goes that shouldn't diminish or knock Bitcoin at all, just like it shouldn't Apple, if a flashy new stock comes by and dies?   Speaker 4 (00:32:06) - Well, throughout history, money has come and gone. People use seashells, people use cows, People use lots of things, glass beads all over the world. You know, the US was founded on a silver standard at 1792. Silver was the basis for the US currency that later changed to gold.   Speaker 1 (00:32:27) - What's so interesting, Jim, written in our United States Constitution, it stated that gold and silver shall be money, but of course it's not. In Nixon completely departed the last vestige of that in 1971. Yet there was no amendment written to the Constitution to supersede it.   Speaker 1 (00:32:47) - Gold and silver shall be money when it comes to currency and how one measures the prosperity in the United States. It is the dollar. We know it's going to continue to be the dollar for some period of time yet, and you can't get too many certainties in investing. And really the second near certainty we can get is that the dollar is going to continue to diminish in value. So that's why rather than save it, we borrow for real estate. Jim, wrap it up here. In this world of higher inflation, though, it's come down in higher interest rates where you tend to think they will keep going higher. What should one do, maybe especially a younger person today, You know, any direction that you would have for a younger person, a younger investor, or maybe that's even investing in themselves and developing skills themselves. So what are your thoughts?   Speaker 4 (00:33:33) - They're all investors. Young, old, whatever should invest only in what they themselves know a lot about. If you want to be successful, don't listen to somebody on the TV or in the magazine or even on the Internet.   Speaker 4 (00:33:48) - You know your program. They should invest only in what they know about you. Listen to somebody and she said, Buy X and you buy x and x goes up. You don't know what to do because you don't know why you bought it. Right? X goes down, you don't know what to do because you don't know why you bought it. So if you want to be successful, just stay with what you yourself know a lot about. You might say that's boring. Be boring If you want to be successful, be boring. You know, invest in what you know. And I cannot tell you how important that is for all investors, young or old.   Speaker 1 (00:34:31) - Yeah, well, to sum it up on rates, Jim Rogers said that governments have debt, therefore governments will keep printing. So then governments will raise rates to keep inflation in check. Remember, just last year, a lot of people didn't think that Powell would have the guts to raise rates so high. Well, he sure did. Who else did I ask about how high interest rates will go? Will, I asked you on our get Recession Instagram poll, the majority of you think.   Speaker 1 (00:35:01) - That the Fed rate will exceed 6%. And again, it's about 5% now. All right. Well, then with mortgage rates around six and three quarters now, perhaps they'd go up to about 8%. But of course, mortgage rates don't track the Fed rate in lockstep. They more closely follow the yield on the ten year note. Now, this is really interesting for real estate investors when inflation is low. So interest rates, well, in those environments, real estate people seem to love that. But you know what? Those two things pretty much cancel out. Well, since we're big borrowers as real estate investors, you get less benefit from low inflation and more benefit from low interest rates, just like high inflation and high interest rates cancel out because now you've got your debt being debase faster and a greater interest expense to pay. So really it's a wash either way. If for some reason real estate investors seem to be more concerned about high interest than they are thinking about the benefits of the high inflation and in fact, real estate investors, hey, we can totally have our cake and eat it too, because when inflation goes high, well, you can stay fixed on your low interest rates.   Speaker 1 (00:36:16) - And then when inflation and rates go low, you can refinance. So savvy real estate investors then in fact benefit from the inflation and interest rate dance. This kind of tango that they do where they stay together. If you enjoy the show here each week, do you mind doing something as a give back that takes less than two minutes of your time? Leave a podcast rating and review. The fastest way to do this is just perform a search. Either search how to leave in Apple Podcasts Review, or how to leave a Spotify podcast review. I'd be grateful that helps others find the show. And we've got a bunch of terrific episodes coming up for you here on Gray, providing you with free content and reliably showing up for you every week. I would greatly appreciate your podcast rating in review. Again, it's easiest to simply search how to leave an Apple Podcasts Review or how to leave a Spotify podcast review until next week. I'm your host, Keith Weintraub. Don't quit, dude. Adrian.   Speaker 5 (00:37:24) - Nothing on this show should be considered specific, personal or professional advice.   Speaker 5 (00:37:28) - Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of Get Rich Education LLC exclusively.   Speaker 1 (00:37:52) - The preceding program was brought to you by your home for wealth building Get rich education.com.

Get our newsletter free here or text “GRE” to 66866. Are you curious about the direction of rents and property prices?  In this episode of Get Rich Education, host Keith Weinhold dives into the absolute 100% certainty of a housing crash and how mortgage rates affect home prices.  Keith is interviewed by Ken McElroy. He also shares the importance of real estate in reducing taxes and increasing income.  Keith discusses the attractive pricing and inflation in Ohio, and the benefits of investing in new build properties.  He even touches on the increasing gold purchases by central banks and the potential impact on personal finances.  Don't miss out on these valuable insights and learn about the prospects for a housing crash. Tune in now! Title [00:01:37] Advertisement for Freedom Family Investments An advertisement for Freedom Family Investments and the benefits of investing in real estate. Title [00:02:00] Introduction to Get Rich Education Keith White introduces the podcast episode and talks about the longevity and popularity of the show. Title [00:03:54] Real Estate Price Gains Since the Start of the Pandemic Keith White discusses the cumulative home price appreciation in different regions since February 2020. Title [00:12:33] Discussion on the attractiveness of real estate pricing and the impact on renters. Title [00:15:08] Keith's personal experience of starting with a fourplex and the concept of house hacking. Title [00:19:38] Exploring the house hack model as a solution to affordability issues and leveraging other people's money for real estate investment. Title [00:22:12] Investing Out of State The speaker discusses the benefits of investing in real estate out of state and the importance of choosing the right market and team. Title [00:24:58] Importance of Prioritizing Market and Team The speaker emphasizes the importance of prioritizing the market and team before considering the property in real estate investing. Title [00:27:19] Supply Crash vs Price Crash The speaker explains the significance of the housing supply crash that occurred in April 2020 and how it affects property prices and homelessness. Title [00:31:51] Inflation Measurement Challenges Discussion on the difficulty of accurately measuring inflation due to various factors such as personal preferences and hedonic adjustments. Title [00:34:05] Housing's Impact on Inflation and Interest Rates Exploration of the significant contribution of housing to the Consumer Price Index (CPI) and its implications for future interest rate changes. Title [00:35:38] Paradox of Rising Mortgage Rates and Home Prices Explanation of the counterintuitive relationship between rising mortgage rates and increasing home prices, with historical data supporting this trend. Title [00:42:28] Advantages of Investing in New Build Properties Discussion on why it makes more sense now to look at new build properties than in the recent past. Title [00:43:49] Feasibility of Building vs Buying in Different Markets Comparison of the cost per unit for acquiring existing properties versus building new ones in different markets. Title [00:46:28] Turnkey Rental Properties and Scarcity as an Investment Theme Exploration of the concept of turnkey rental properties and the importance of investing in scarce assets like real estate, gold, and bitcoin. Topic 1: Central banks buying gold [00:51:38] Discussion on how central banks are buying gold as a way to store value and hedge against the inflation and debasement of the US dollar. Topic 2: Increasing geopolitical uncertainty and gold [00:52:36] Exploration of how geopolitical events, such as trade agreements and conflicts, have led to increased uncertainty and a rise in the price of gold. Topic 3: Reasons why home prices won't crash [00:56:46] Explanation of several reasons why home prices are unlikely to crash, including a shortage of homes, strict lending guidelines, government intervention to prevent foreclosures, and the slowing of new home construction due to higher interest rates. Resources mentioned: Show Notes: www.GetRichEducation.com/456 Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Find cash-flowing Jacksonville property at: www.JWBrealestate.com/GRE Invest with Freedom Family Investments. You get paid first: Text ‘FAMILY' to 66866 Will you please leave a review for the show? I'd be grateful. Search “how to leave an Apple Podcasts review”  Top Properties & Providers: GREmarketplace.com Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold   Complete episode transcript:   Speaker 1 (00:00:01) - Welcome to Get Rich Education. I'm your host, Keith Weinhold, with a crucial update on the direction of rents and property prices. Then a discussion between Ken McElroy and I where I posit to his audience about why a housing crash is 100% certain and why what mortgage rates do to home prices is exactly the opposite of what everyone thinks. And more today on Get Rich Education. Taxes are your biggest expense. The best way to reduce your burden is real estate. Increase your income with amazing returns and reduce your taxable income with real estate write offs. As an employee with a high salary, you're devastated by taxes. Lighten your tax burden. With real estate incentives, you can offset your income from a W-2 job and from capital gains freedom. Family Investments is the experience partner you've been looking for. The Real Estate Insider Fund is that vehicle. This fund invests in real estate projects that make an impact, and you can join with as little as $50,000. Insiders get preferred returns of 10 to 12%. This means you get paid first.   Speaker 1 (00:01:08) - Insiders enjoy cash flow on a quarterly basis, and the tax benefits are life changing. Join the Freedom Family and become a real estate insider. Start on your path to financial freedom through passive income. Text Family to 66866. This is not a solicitation and is for accredited investors only. Please text family to 66866 for complete details.   Speaker 2 (00:01:37) - You're listening to the show that has created more financial freedom than nearly any show in the world.   Speaker UU (00:01:44) - This is Get rich education.   Speaker 1 (00:02:00) - Working from Hot Springs, Arkansas, to Palm Springs, California, and across 188 nations worldwide. You're listening to one of America's longest-running and most listened to shows on real estate. This is Get Rich Education. I'm your host and my name is Keith Weinhold. And with 456 weekly episodes, you probably know that by now. Hey, I'm really grateful that you're here. Carefully chosen buy and hold Real estate is not day trading. Rather it is decade trading. Yeah. I'm a decade trader. Perhaps you're one two. You just haven't thought of it that way before.   Speaker 1 (00:02:41) - When I was recently with Ken McElroy in person in his studio in Scottsdale, Arizona, we produced a terrific media interview and conversation together that I'm going to share with you later today. But first, you know, it's not just you're out of control. Trader Joe's grocery bill. The entire world seems to be losing its battle with inflation. U.S inflation is still double where the powers that be want it. The UK recently stunned markets will need jacked up interest rates a half point to the highest level in 15 years. The ECB, Australia, Canada, Switzerland and Norway. They have all announced recent rate hikes. But Turkey Turkey is raising rates and astounding. 6.5%. Yeah, you heard that right. 6.5% all in one fell swoop. That's how much interest rates are going up there. Yet many say that it's not enough for them to get on top of their wildly out of control inflation. Now, let's get into a few real estate numbers here before my fantastic chat with real estate influencer in Great Guy Ken McElroy.   Speaker 1 (00:03:54) - Now here's a great set of real estate numbers since inflation has hit real estate too. Okay, we'll talk about rents in a moment, but let's talk price first with credit to John Burns, Real Estate Consulting. Let's look at American real estate price gains since the start of the pandemic. Okay. So this is not annual. This is cumulative starting in February of 2020 up to today. Here we go. There is a national home price appreciation figure and then it's broken into ten regions. And I think this regional breakup is kind of quirky, and I'll tell you why in a moment. But nationally, since the start of the pandemic, national real estate is up 36%. But let's stop and think about what that means for a moment. Well, since that time, February 2020, which is when these figures are all tracked back to, has the real rate of inflation also been 36%? I'll just say that the answer is yes. Well, then real estate has no inflation adjusted gain in all that time.   Speaker 1 (00:05:03) - Well, here are the ten regions cumulative gain since that time. Okay. Going from lowest to highest, Northern California is up 27%. The Northeast up 29%. The northwest is up 32%. Southern California up 33% cumulatively since that time, about three and a half years here. The Midwest is also up 33%. The Southwest up 38%. Texas up 40%. The Southeast up 46%. North Florida up 50%. A lot of castle markets there in north Florida, too. And the top appreciating region, according to this stat set since February of 2020 with 56% cumulative home price appreciation is South Florida. Yeah, up 56%. And now some of those regions mentioned like in the West, they were actually up more than this a few months ago and they've given back a little bit of their gain. But that is a great stat set. The only thing that seems quirky about the methodology to me is that you've got Florida and California, each with two stat sets, yet the entire Northeast is lumped in together without, say, breaking out New England.   Speaker 1 (00:06:26) - But I don't know, There might be a reason for the odd amalgamations there. I might look into that. Maybe that's just some regional bias or some concern there. Since I am a Northeastern guy, I think that by now, any long time listener knows that I'm from Pennsylvania and have lived most of my life there. I'm in Pennsylvania every year and I like to avoid hot summers, so I spend my summertime and more time in Anchorage. AK So fantastic home price appreciation in the past three and a half years, partially demand driven. Partially inflation driven, you know, three plus years ago, a lot of people, but never me, a lot of people, including real estate influencers, they said that the pandemic would be awful for both real estate and stocks because people would lose their jobs and lose their homes and businesses would shut down. Oh, no. We talked here about agree with it or not, the government's safety net is on its way and it came with the PPE and the Cares Act and everything else.   Speaker 1 (00:07:29) - I mean, Biden won't let people lose their homes. That's what was going on back then. And then in late 2021, I stated Jerry's National Home Appreciation forecast that home prices would rise between 9 and 10% in 2022. They ended up rising 10.2%. And then you remember that late last year I forecast that there really wouldn't be much of any national home price movement this year. Okay, 0%. I am on record right here on the show saying that then and here we are near the year's midpoint. And I like how that forecast is looking. And it was interesting. Late last year, Realtor.com, they predicted 5.4% national home price appreciation for this year. Well, just last week they revised it down to a drop of 6/10 of 1%. Okay. So basically they've gone to 0% as well, much like I forecast late last year. But of course in our core investor areas of the inland in the south, home prices, they are rising just a little this year. What about rents? That's something you might care about more.   Speaker 1 (00:08:42) - CoreLogic They tell us that rents for both single family homes and apartments are up 4% year over year, and that's really unremarkable. That's just the historic long term norm. And it's really been interesting how the rent growth rate for single family homes and apartments has just been remarkably similar, like shadowing each other. But the real story is that rent growth has really decelerated because national rent growth, it peaked at about 14% a year and a half ago. And now among Single-family rental homes, what you'd expect in inflation is happening. High end property rents are up just 2% because they're the least affordable. And then the more affordable low end rents are up 6%. And like anatomy, there are so many ways to parse real estate. There are so many ways to dissect the frog here. So let's look at rental growth by region. And it's from that chart that I shared with you in last week's Don't Quit Your Daydream Letter. Rents are down 2% in the West. They are up 1%. In the South. They're up 5% in the Midwest and they're up 5% in the Northeast as well.   Speaker 1 (00:10:02) - And what's been persistently steadiest is the Midwest price growth in rent growth. I mean, they're in the Midwest. That is like as stable as the clover honey that's in your pantry right now. And also, did you know that honey is the only food that doesn't spoil? Did you know that? Yes. Yeah. It's also stable, so it doesn't need mixing either. Stable like Midwestern real estate. And that's the reason that's had that best ratio of high rents to a low purchase price, which is really that key metric that you care about as a real estate investor. Now, for example, let's take a look at this specific property in Exact Street address from Marketplace. I mean, this is a great example. This is 224 Baltimore Street in Middletown, Ohio. Middletown is between Cincinnati and Dayton. Okay. This duplex here has a monthly rent income of $1,400 total from both sides. The price is $139,900. And this duplex is substantially rehabbed. And the $1,400 rent that's broken down by $800 comes from the two bed one bath side and $600 from the one bed, one bath side.   Speaker 1 (00:11:26) - The duplex is 1680 eight square feet. It's in a classy neighborhood and the rental status is that both sides are already leased. Okay, So when you have an existing property like this, sometimes you have that as the advantage. It's leased and on a duplex when you have both sides leased, you know what questions I would want to know before I buy a duplex like this? What is the rent payment history of those tenants on each side of the duplex and where are they employed? I mean, one might have been paying the rent. But if they're employed at the malls, pop up, stand for 4th of July fireworks or something, Well, I would want to know that. Or if their employment is more stable than something like that. So this 140 duplex is something you could buy with a 25% down payment. So even with closing costs, you're in there for under 50 K. So yes, they're in America's seventh most populous state of Ohio and might take on a property like this. Is that this duplex that's for you? If you're more interested in cash flow than you are appreciation.   Speaker 1 (00:12:33) - I mean, my gosh does pricing like this almost make you feel like inflation missed Ohio? That's how it feels in hey, that's what attracts renters as well. And you can find their property in more like them, including an increasing proportion of new build property nationwide from Florida to Indiana to Texas to utah@marketplace.com. Coming up in this interview with Ken, where I was a guest on his show, you're going to hear me say some things that you might have heard me say before, but I sort of say them in a different way when someone else sees interviewing me and I talk about including why there is a 100% certainty of a housing crash in a few other surprising things. And then at the end I discuss some new things that I have not discussed previously, including what I personally champion and invest in myself outside of real estate. We don't run with the herd on the mainland, but you know, here in Jerry, we are not an island to ourselves either because the dust from the herd affects us. Our investing philosophy is on a profitable, I suppose, peninsula, if you will.   Speaker 1 (00:13:48) - That's why I definitely say things that you don't expect to hear in this interview. And you know what? If someone only says what you expected to hear, that would probably be a disappointment and a waste of your time and you wouldn't learn anything. A critical real estate conversation between Ken McElroy and I, straight ahead. I'm Keith Reinhold. You're listening to Get Rich Education. With real estate capital Jacksonville. Real estate has outperformed the stock market by 44% over the last 20 years. It's proven to be a more stable asset, especially during recessions. Their vertically integrated strategy has led to 79% more home price appreciation compared to the average Jacksonville investor since 2013. Genevieve is ready to help your money make money and to make it easy for everyday investors. Get started at GWB Real estate. Agree That's GWB Real estate. Agree. Jerry listeners can't stop talking about their service from Ridge Lending Group and MLS 42056. They've provided our tribe with more loans than anyone. They're truly a top lender for beginners and veterans. It's where I go to get my own loans for single family rental property up to four plex.   Speaker 1 (00:15:08) - So start your prequalification and you can chat with President Charlie Ridge personally, though even deliver your custom plan for growing your real estate portfolio. Start at Ridge Lending Group. This is Richard Duncan, publisher and Macro Watch. Listen to get rich education with cheap wine and don't quit your day drinks. Hey, everybody. I'm here with Keith Reinhold. Welcome back. Hey, it's so good to be here. It's interesting. I was last here in January of 2021. And remember, Ken, that's when we talked about how you can profit from inflation. Inflation was only 1.5% back then. So for all the viewers and listeners, had they watched that, they really were profited from that surge of inflation, we should go back and check that one out again, you know, because I remember that discussion was fabulous. And now now that's kind of the hot topic, the hot topic for sure. So Keith has a great company. It's called Get Rich Education. Before we go down that road, let's talk about how you started, because most people, you know, they struggle with just getting started.   Speaker 1 (00:16:22) - And I know you started with a fourplex. Yes. And you know, this is something very actionable for you, the listener, the viewer there. You can start off like I did. I didn't have a lot of money when I started out. I think that's a common investor's story. So how could I do more with less? And, you know, I was in Anchorage, Alaska, at the time when I was about to buy my first fourplex building, and I didn't have the inclination to know how to remodel places or be a landlord or anything like that. And, you know, Ken, it's a quote we've all heard, but it bears repeating the circle of friends I had fallen in with Harkins, the Jim Rohn quote, You are the average of the five people that you spend the most time with. Take your five closest friends income level. Take their educational attainment level, take the way they dress your five closest friends. If you want to change yourself, change your five. In two of my five in Anchorage, what I call pretty aspirational guys and two of my friends, they had made their first ever property a fourplex building with just a 3.5% down payment.   Speaker 1 (00:17:25) - So I learned how to do this from them. And you can still do this today. All you have to do is live in one of the units at least 12 months and just have a minimum credit score of 580. You can do that with a single family home, duplex, triplex or fourplex. That's how you can start with a bang and a small down payment. Yeah, we call that house hacking. Yeah, yeah, yeah. We talk a lot about this and I don't think people really realize, you know, and if you move into one side of a duplex and you buy a duplex with with this low money down and the lower credit score, you're basically you might not have a lot of cash flow if you live on the other side. But what you are is you're eliminating that huge expense that might have been for rent or something else, right? That's right, 100%. You know, everybody has their wacky landlord story. So I bought my first property living in one unit of the fourplex, renting out the other three.   Speaker 1 (00:18:16) - And like a duplex, like you said, where you might live. Did you tell me you were the owner? I because that's always thing. Yeah. You know, after a while after I got the new tenants in there, actually after I had moved offsite to another place, I didn't really want to admit I'm the owner. They ask all kinds of crazy things, but, you know, everything didn't go perfectly. For example, you know, shortly after I moved in, it was time for a tenant to pay the rent. It was the first that was due. They said they pay it the fifth. I was like, Oh, yeah, sure. Okay, whatever. Well, of course they didn't. I had to replace them. And you know how I qualified my next tenant in that vacant unit? What the qualifications were. Three females applied. They were attractive. So I let him move into the unit next to me based primarily on the fact that they were attractive. Well, that didn't work out very well.   Speaker 1 (00:19:00) - They had parties and they did not invite their landlord to the party. So everyone's got their wacky landlord story that's mine, but that's how you can start big. It is a good way to do it. And I think I don't think a lot of people realize that they can do that. So a lot of people I know are struggling with these affordability issues. So, you know, we've seen since our last podcast, you and I did, we've seen massive inflation, massive rent growth, obviously massive interest rate growth, which has driven people's mortgages up and doubling people, the mortgage payments up, plus we have all the inflationary components that I just mentioned. This is the best time to look at that house hack model because, you know, why wouldn't you grow.   Speaker 3 (00:19:38) - With inflation if you can do it with a with a two unit or four unit? Right now, there are some restrictions for for units and underwriters there something where if you go over that, it's a different kind of loan.   Speaker 1 (00:19:50) - That's right.   Speaker 1 (00:19:51) - Four units is the most you can do with that FHA loan in 3.5% down. So it's single family home, duplex, triplex or fourplex. And if you have VA Veterans Administration benefits, you can use that same plan with zero down. Believe it or not. It's a great way to start with the bank. Yeah.   Speaker 3 (00:20:07) - So you guys really need to look into this. If you could replace your living expenses large of the largest one, which is obviously typically rent and utilities and all that, then why wouldn't you?   Speaker 1 (00:20:20) - Yeah. And you know, here's the thing. Here's the takeaway. And I didn't understand this until I had owned that first fourplex for a couple of years. I think we've all learned we've all been influenced by the mantra that you don't want to invest with your money. You can build wealth profoundly by ethically employing other people's money. We're talking about doing it ethically. Providing people with housing that's clean, safe, affordable and functional. With that fourplex like I just described, I was using other people's money three ways at the same time.   Speaker 1 (00:20:50) - And you can do it too, because I use the bank's money for the loan and leverage. I use the tenant's money for the income that you were just talking about to offset all the building expenses and the mortgage payments. And then thirdly, I was using the government's money for very generous tax incentives, use other people's money three ways at the same time with the loan for income property, that's really going to accelerate your wealth building.   Speaker 3 (00:21:15) - That's right. That's right. And can you with that also do it with the down payment? That might be a fourth way.   Speaker 1 (00:21:21) - There are creative ways. For example, I know with FHA, sometimes you can get a gift. So that's a very astute question.   Speaker 3 (00:21:27) - Yeah. So that's another thing that a lot of people don't think about is, you know, I know with the FHA program, they're going to be looking at you. But there are there are ways to get gifts.   Speaker 1 (00:21:38) - That's right. And really use other people's money for the entire thing with keep using other people's money all that you can.   Speaker 3 (00:21:45) - The point is, guys, all can be OPM or other people's money. And that is the point. And so if you can't look into that, then it's now just an excuse. So let's talk about like you've done a very successful job of going out of state, out of the network and, and buying real estate. How have you done that? Because a lot of people are freaking out around, you know, how do I do I stay local? Do I go out of state? There's a lot of things to consider.   Speaker 1 (00:22:12) - I don't invest in my own local market. In fact, can I sell my last local meaning local to Anchorage, Alaska? I sold my last local apartment building last year. It's the first time in 20 years since I bought that first fourplex building. I don't own any local properties. I do all my investing out of state in investor advantage markets in the Midwest and South. And I know to some people it's scary to go out of state for the first time. You know, for some reason with stocks, people feel quite comfortable with, you know, buying stock for a company.   Speaker 1 (00:22:41) - They don't even know where that company's headquartered. But with real estate and something called turnkey real estate investing, that's one way to go across state lines. But really, here's my mindset in getting comfortable without estate investing, this is how I think of it. Can The property is only the fourth most important thing in real estate investing, and if you're thinking about investing, you often start by thinking about, okay, what would my next property be? It's important. But there are three things more important. Number one is you. What do you want real estate to do for you? This is what I like to share with people. Can Secondly is what market are you in? Thirdly, what's the team of professionals, especially your property manager, that you choose to surround yourself with? And then fourthly and only fourthly is the property. So let's go through that. It starts with you. What do you want real estate to do for you? Or are you looking for cash flow, which is common, or appreciation or tax advantages or a lifestyle benefit? Like maybe you want to live in it yourself.   Speaker 1 (00:23:37) - Once you've got that figured out what you want real estate to do for you, the market is the next most important thing. There is more risk with being in a little ho dunk market of 6000 people where half the employment is tied to the zinc mine than you think. So I like to be in larger metros have a diversification of economic sectors, something that you really excel in. Can So the market's at second thing because you need to have a place that's going to be filled with tenants. And when you buy your property, you need to have a reasonable expectation that 18 months down the road you're going to have another tenant that's going to be able to come in and fill that property. And then the third most important thing is the manager, your team. I mean, a bad property manager would drive a good property into the ground because you want this to be relatively passive. And fourthly and only fourthly is that property. And you know what happens. Can I see this happen? So often people get a 100% backwards.   Speaker 1 (00:24:30) - They go for three, two, one. First, they get all excited about a property and buy it because it has pretty blue shutters. Then they try to figure out if there's a good manager in the market because they don't like to get texts from tenants. And then secondly, they try to figure out the market that they bought in and it's too late. And then they go back to number one, which you're just so far out of line. And this is why a lot of people say that real estate doesn't work. So, again, the property is only the fourth most important thing. It starts with you market and team first. Yeah, I.   Speaker 3 (00:24:58) - Find that key. They do go for three, two, one all the time. Right? It drives me nuts because, you know, as you know and most professionals go one, two, three, four. And I think what happens is if when they get to one, they're they're figuring it out. You know, they need you to start there because it certainly clears up the vision, right?   Speaker 1 (00:25:18) - Yeah, 100%.   Speaker 1 (00:25:19) - And, you know, you intrinsically know this, but you just haven't thought it through before. Like, for example, you already know that the market is more important than the property. A giant mansion in a swamp outside Charleston, West Virginia, is not worth much, but yet a tiny 400 square foot efficiency apartment in the Tribeca neighborhood of Manhattan. Can be worth an awful lot. It's just reinforces the fact that the market's more important than the property and a lot of people get it wrong and always.   Speaker 3 (00:25:46) - Has been and always will be because you can you can screw up a purchase in a market that's going like this and you'll still look like a star.   Speaker 1 (00:25:55) - Yeah. And this will be true a decade and maybe even a century know. Yeah.   Speaker 3 (00:25:59) - So that's why the market is so important. So let's talk about the most controversial thing here, which is why there is 100% certainty, 100% of a housing crash. This is a I heard you talk about this and we talked a little bit about it for the podcast.   Speaker 3 (00:26:16) - I said, let's just wait, wait, wait, Let's talk about it on the podcast.   Speaker 1 (00:26:20) - There is a 100% certainty of a housing crash. And one might be wondering, first of all, how could you say that no one has complete clairvoyance to know the future? And the reason there is a 100% certainty of a housing crash in this era is because it already occurred. It happened in April of 2020, More than three years ago. It was a housing supply crash, not a price crash. In fact, the fact that we have had a supply crash really hedges against any sort of price crash. So using Freddie Mac data and I shared the chart with you before I came over to this video here so that you could see the backup. There are so many ways to go ahead and measure the available supply of homes, but about 1.5 million is what you'll see, Fred. The Federal Reserve economic data, about 1.5 million has historically been the amount of available homes going back to 2016. It began to fall after that with what happened in the health crisis.   Speaker 1 (00:27:19) - It plummeted in April of 2020 to 600,000 units and it still hasn't rebounded and it's continued to fall. So it's a 60% supply crash, 1.5 million down to less than 600,000 now. And that's what hedges against a price crash. That's why prices are continuing to stay buoyant at whatever demand level. The supply is really low, and that helps keep a bid on property. And really, I'd like to share with you the profundity of the fact that we've had a supply crash, not a price crash. I mean, think about this. We're the most powerful nation in the world, by so many measures, were the most powerful nation as far as political positioning and our military and our currency and our brand, the most powerful nation in the world. And we have trouble housing our own people. I mean, we're talking about food, shelter, safety, Maslow's hierarchy of needs, base level stuff here. So it's actually a bigger deal then a price crash. If you think about it, you may very well see more more homeless people in your in your hometown, for example.   Speaker 1 (00:28:25) - So the crash already occurred. A supply crash, not a price crash. Yeah. Yeah.   Speaker 3 (00:28:29) - It's important distinction, I think. I think people really need back up from this a little bit and understand where things are headed. You know, we have affordability problems. We definitely have homelessness issues creeping up. And so what really, really challenged everybody were these federal funds, increases in interest rates that went up. So all of a sudden, you know, we've also had the largest delta between rents and the the average mortgage price. So you got mortgages here. So rents and mortgages were kind of trending along at a pretty, you know, pretty equal amount. But now because of the whole prices that went up and the interest rates went up, there's a big, big gap between rents, even though rents have gone up. So that's also keeping people in their houses because they've got the 6%, let's say five, 6% interest rates, but they bought them at three. So they have this trapped equity, right? So so if you own a home that's 500 grand and you you have 3% on it, you're not going to move.   Speaker 1 (00:29:39) - Right? No, it's the mortgage interest rate lock in. Yeah, And that's a really astute point, Ken, because this plays in to the national dearth of supply on Iraq, 1.5 million available units down to 600,000. I talked to just lay people in everyday homeowners that have become landlords because they say, I don't want to sell my home. And it's 3.25% interest rate. So when I move out of it, I just want to hold on to that loan and rent it out. In the United States, you can't move your mortgage along with your property like that. So it's that interest rate lock in effect, that property, rather than coming up for sale, which would increase supply, doesn't it stays put. And almost two thirds of mortgage borrowers in the United States have a mortgage rate of 4% or.   Speaker 3 (00:30:24) - Less, a staggering number. It is. So I always tell people, Keith, you know, when I was growing up, cash was an asset, right? That was a liability. But now it's the opposite.   Speaker 3 (00:30:35) - Cash is now a liability because inflation. If you're if you have it in the bank is running faster and harder than what you're getting in interest. And now that debt at 3%, let's say, is an asset, you would actually be selling the property and you'll be getting rid of that asset. You can't borrow at 3% today because that is OPM or other people's money like we talked about.   Speaker 1 (00:31:00) - Right, Right. And if I borrow from a bank, say I'm a borrower and I want to take a loan from you. Well, of course, if I can do that at an interest rate, that's less than the rate of inflation. I want to do that because it's profitable. And how the mechanics of that work actually is when I repay Ken the bank in this case, every month that dollar debases on him faster than his interest can accrue on me. That's profitable for you if you can find that it's getting a little harder to find. But you can in some situations, still get interest rates lower than inflation.   Speaker 1 (00:31:33) - And inflation is such a fluffy number. We know that the CPI is manipulated with substitution and weighting and things, but if you can borrow at less than real inflation, that's exactly the transaction you're profiting from.   Speaker 3 (00:31:43) - What do you think real inflation is? Because I, I'm all over the Internet trying to figure this out, you know, and I go to all the shadow stats and all the things.   Speaker 1 (00:31:51) - Yeah, that's good that you're in shadow stats. There isn't really a good accurate way to measure inflation. I mean Ken and I a for next door neighbors were going to pay different rates of inflation. Say one of us is a vegetarian and the other eats beat then inflation in the price of steak affects one of us, but not the other. So if he commutes more than I do, gasoline prices affect him more than me. It's very difficult to pin down what the real rate of inflation is. There are hedonic reasons as well. Hedonic means pleasure seeking. So, for example, if home values go up 10% in a year, but now it's more common for homes to have quartz countertops in them a year later and they didn't have that in the homes of yesteryear.   Speaker 1 (00:32:33) - How do you adjust inflation for that? Because you're getting a better standard of living with quartz countertops. So this is why can and anyone has such a hard time pinning it down to what's the real inflation number. It's really nebulous.   Speaker 3 (00:32:45) - And I do know it's more.   Speaker 1 (00:32:48) - We do know it's more than what the CPI is reporting. How much more? No.   Speaker 3 (00:32:52) - One. I know it's true. It's all over the map. But I got to tell you, man, things are creeping up. You know, we were you know, my wife and I were you know, we just go to dinner and it's 100 bucks now. I mean, there's all these things that are there a lot more. But one thing is for sure, guys, if you can have an interest rate less than inflation, you're beating the market. That's the important thing to understand. And that's why, you know, go go the way back to Rich dad, poor dad with Kiyosaki. He was way ahead of his time when he said cash is trash.   Speaker 3 (00:33:27) - And, you know, savers are losers. And he doesn't mean that you are a loser. What he means is savers are losing money as compared with inflation. Back then, it was 2%. So now it's obviously more. Right?   Speaker 1 (00:33:41) - Yeah. And you know, really with inflation, I think the word is noticeable. No one talked about it when it was about 2% these past few years when it was right around the Fed target. It isn't until it became noticeable that it really became a thing. And you know, what do they say? What's Walmart greater say? They no longer say hello at the door. Instead, they just apologized for what's about to happen to you in there. It's noticeable.   Speaker 3 (00:34:05) - I noticed I was digging into the CPI or the Consumer Price Index recently for a video I was doing and I saw that housing was 44% of that number.   Speaker 1 (00:34:14) - Yeah. Between rent and owners equivalent rent, those two measures contribute to the CPI.   Speaker 3 (00:34:19) - So that's a lot. So think about that because I know, you know, what does that mean To me? That means that the Fed is not done increasing rates because, you know, I guess now they're reporting it at five.   Speaker 3 (00:34:33) - But if 44% of that 5% is housing in theory, then it looks to me like they're going to they're going to clip away at more of these federal funds rates. Right. What do you think?   Speaker 1 (00:34:46) - That's right. A lot of people think the Fed pivot will come later this year. The Fed pivot means when they stop hiking, which is increasing rates and begin to lower rates. I've got something really almost pretty trippy, really on interest rates to share with your audience here, Ken, because I think this is a real paradox that's going to blow some people away. What is it? So we know that mortgage interest rates have been up so much lately. And you know what happens with rising mortgage rates, right? When mortgage rates rise, home prices. You thought I was going to say fall, didn't you know? When mortgage rates rise, expect home prices to rise. And you might say what? That turns my whole world upside down. I mean, wouldn't one know that when mortgage rates rise.   Speaker 1 (00:35:38) - Well, that to. Creases affordability so one would afford less in prices would need to come down. And you know, the lens I like to look through a lot of times. Can we talk about applying economics to real estate? It's what I call history over hunches. I think it's really easy to have a hunch that when mortgage rates rise, well, obviously prices would have to come down due to impeded affordability. So maybe you're still wondering, well, what kind of upside down world would that happen? It's the world that you've been living in these past two years. What happened in 2021 and 2022? Home prices rose at a torrid pace, about 20% in 2021 and the following year last year, another 10% way beyond historic norms. And what happened with interest rates during that same time, they got doubled. I mean, they climbed a cliff. So that actually usually happens that when rates rise, prices rise. In fact, in the history over hunches, vane Winston Churchill is the one that said, the further you look into the past, the further you can see into the future.   Speaker 1 (00:36:44) - So let's open this up and look at the past, talk about why this happens, and then think about some lessons that you can learn from it. So in about the last 30 years, since 1994, mortgage rates have increased substantially nine times. That's defined as a mortgage rate increase of 1% or more. And during those nine times that mortgage rates rose, home prices rose seven of those nine times. This typically happens. And, you know, when I share this with real estate, people can a lot of them are blown away. They don't understand how they really don't even believe it. And I shared the data with you right before I came down here. You have the studio and maybe you can even put that chart up there to show people that I.   Speaker 3 (00:37:25) - Will do that.   Speaker 1 (00:37:25) - Jerry Yeah, but you know what? When I talk with doctors of economics, like the ones that I interview on my show, some of them aren't aware of it, but they all say, Oh yeah, I can believe it.   Speaker 1 (00:37:33) - I can understand how that would happen. All right. So what's going on here? Why does this happen? Why wouldn't mortgage rates rise? Would home prices rise? And, you know, there are for a couple of reasons. You know, can you and Donnell talk so eloquently about lag effects in the economy? Yeah, So that's one reason. But this can't completely be explained by lag effects because we have to think about what makes a person buy a home. Okay. We'll come back to that in a moment. But let's think about what happens when rates rise. Okay. Generally, the Fed is saying that the economy's hot, people are employed right now. There are some high profile tech layoffs for sure, but there are still more open job positions than there even are people to fill them. And this makes inflationary pressures heat up. So that's why they raise rates. When everyone has a job and you have an option if you get laid off to go to a second job and employers are competing for employees, what happens? You feel pretty secure in your job and what do you do when you feel secure in your job? You're likely to buy a home.   Speaker 1 (00:38:37) - So your situation, your income, your job security is an even more important factor than what mortgage rates are. So this is why, completely counter-intuitively and paradoxically, when mortgage rates rise, expect home prices to rise as well. And in fact, can. The only two times in the last nine that rates rose, that prices didn't rise as well. You know, they were they were 2007 and 2008 when there are really wacky aberrations going on in the market leading up to the global financial crisis. So, again, when rates rise, prices typically do two completely opposite of what most think.   Speaker 3 (00:39:12) - Yeah. And don't forget that part of the reason rates rise is because of the scarcity. So when you go from 1.4 million to 600,000, yeah, you have less just basic demand and supply. Less supply.   Speaker 1 (00:39:27) - That's right. And I think importantly, one needs to remember that there's less supply of both homes to buy and homes to rent. And even when one does want to buy and they continue to get shut out of the market with higher rates and higher prices than that obviously puts more people back in the renter pool, which is pretty good for guys like you.   Speaker 1 (00:39:45) - And I can know a lot of income priced right?   Speaker 3 (00:39:47) - That's why I did that video Renter Nation because it's not good by the way this you know housing is supposed to be balanced. So as somebody who owns a lot of rentals, we lose people. We lose people to single family home buying. That is the way it's supposed to be. Right? And then there are some people that when they're when they're done with the single family side, they want to come to rentals for convenience, for flexibility, for all kinds of things. So it's a natural stop. And so when one's out of whack or the other is out of whack, it's not necessarily good.   Speaker 1 (00:40:21) - No, it's not good. I mean, that impedes the upward mobility in really part of the American dream. Of course, you never want to lose a tenant from one of your apartments, but at least you can say, hey, congratulations, you moved up a rung or whatever. So this is the cost of any entry level. Housing is really high.   Speaker 1 (00:40:40) - In fact, when you parse the amount of available homes by the entry level type of, say, single family homes and duplexes, which tend to be the ones that make the best rentals, yeah, they're even more scarce.   Speaker 3 (00:40:51) - It's it's gotten worse. You know, I don't know that as a builder as you know, we built we can build entry level you know the.   Speaker 1 (00:41:00) - Most can't make it feasible.   Speaker 3 (00:41:01) - Cost the cost to build a house today is expensive.   Speaker 1 (00:41:05) - Yeah it really is. And you know, if you are looking to be a real estate investor in the 1 to 4 unit space, which is really an area where I specialize, if you can find a builder that builds entry level homes, I do know of a number of them in the Midwest and South, this could be a time for you to get a new build rental property more so than a renovated one. You know, that's really opposite of ten years ago. Ten years ago, we were still coming off the global financial crisis. Crazy.   Speaker 1 (00:41:32) - That was when the cost of property was even less than the replacement cost no one was going to build. Now you do have people building and, you know, can I know a number of these builders because mortgage rates are higher, that they're helping the investor, the individual investor down there. People like me, yeah, they're buying down the rates. So it's quite common for, oh, say on a $350,000 property for the builder to give you 2% of that 350 K purchase price. What is that, $7,000 at the closing table for you to buy down your mortgage rate? You also have turnkey newbuild companies that are giving 1 to 2 years of free property management. So new build typically costs more than renovated, which is why in the past a lot of investors like to buy a renovated property. But with the new builds and incentives like that and the fact that you're probably going to have lower insurance rates with new builds versus renovated, I think this really tilts toward you as the investors looking at property to your portfolio.   Speaker 1 (00:42:28) - It makes more sense now to look at new build than it has at any time in the recent past.   Speaker 3 (00:42:33) - Yeah, I know that like when we look at those big projects for for acquisition, you know, we're looking at what is it, what is the cost per unit for, let's say an acquisition in Phoenix versus building one? And in the last three years it was building all day long because the cost was 100,000 more per unit to buy crazy, crazy how existing product can get pushed up that high. And so all of a sudden that makes the building more affordable. Yeah, actually. And when you when you build the one next to the other, people are going to want the newer product all day long.   Speaker 1 (00:43:12) - Ken And maybe I can ask you a little something about being a builder. You know, I have learned from some builders that in a way some things are nice because they're not getting as much competition from resales on the market. We talked about why there aren't resales on the market. People want to hold on to their low mortgage rates so builders don't have the competition that way.   Speaker 1 (00:43:31) - But maybe you could let me know. Of course, it's going to vary by region and we've been talking very much nationally so far in the conversation here. But really, what's the lowest price point where it's still feasible as a builder to build where you have enough margin? Like what's the lowest price point on maybe a single family home? And then a larger. Yeah.   Speaker 3 (00:43:49) - So for me, it's mostly just apartments. So, you know, we'll go into a market. I'll give you a great example. We can buy in Austin, Texas, mid-nineties product, vaulted ceilings, nine foot ceilings, beautiful garages for $180,000 a door. Really nice. There's no way we can build that there for that price. Not even close. However, you take that exact project and you move it to Phoenix, it's 350 now. The rents are different, the expenses are different, the insurance is different, the property taxes are different. I understand the math. Is that the same? But, but on a per foot basis and a per unit basis, that's how different it is.   Speaker 3 (00:44:33) - So because of that, we're building in Arizona and buying in Texas. So now that can change. And also, you know that Austin could get really hot, those prices can go up and then we know that then it would change that dynamic. And so to your point, you always have to take a look at the difference between the deliverable. You know, do you buy The one thing I do like about buying is that it's immediate. You know, you could step into something immediate, make change immediate, whereas there's a bigger lag with the construction. So you do have some interest rate risk because you can't get a fixed rate loan on something that doesn't exist. It's land, it's air, and then it's built until it's in service, they call it. Then you can put fixed debt on it, but that's it. Up to that point, you're subject to a little bit of the whim of the fluctuations of the Fed and all the other things that that determine interest rates. So so you do have those things.   Speaker 3 (00:45:36) - We do love the new property. And so do our tenets. So when you build something new, people want to be there and they move out of that ten year or 15 year old product into something new. So there is that, plus you get a little bit more rent and, you know, all of those things. So there's positives and negatives for both.   Speaker 1 (00:45:55) - And so it's really, I'd say in the last ten years when you've seen the advent and proliferation of these build to rent companies, they're turnkey companies that build a finished product for you. That's the first thing that they do. And then the second thing they do is they place a tenant in it for you. And then thirdly, they hold it under management for you, the investor, if you so choose. Basically, it's those three things that define what a turnkey rental property is. So it's making more and more sense to do that with new build properties.   Speaker 3 (00:46:28) - Yeah, it certainly can and it's market by market. But you're right, you have to look at it each and every time.   Speaker 3 (00:46:34) - So before we wrap up, I'd like to talk about, you know, you always say invest in what's scarce, which I completely agree with. You know, And the other thing I like to say is invest the things that you can't print. So, you know, you could print dollars. You know, you can you can create a stock or ETF out of gold and all kinds of things, but you can't print gold, you can't print oil, you can't print trees. You can't print real estate. So let's talk about what's invest in what's scarce. So what do you mean by that?   Speaker 1 (00:47:05) - Oh, I love that. And we're so aligned on that. If I have any one investing theme, it comes down to one word scarcity. Yeah, I like to invest in what's scarce, not what's abundant and can be printed. You know, you don't even have to print anymore. It's just a few keystrokes and things like dollars and additional stock shares, abundant things, they can just be conjured into existence.   Speaker 1 (00:47:27) - So I avoid what's abundant like dollars in stocks and I focus on investing in what's scarce and is difficult to produce more of and take, yeah, real world resources to produce which is for me, it's real estate, gold and bitcoin that rounds out my scarcity theme. Why Real estate? It's a wealth builder really. Gold and bitcoin are not proven wealth builders. I think gold and bitcoin are maybe good places to move some capital once you've built it. Gold and bitcoin can be good stores of value gold really the classic store of value and bitcoin the real risk. But you know real world resources to produce. They're all scarce. Like we talked about the low supply of real estate. It has utility meaning usefulness. And yeah, when you buy a piece of real estate, a lot of people don't think about it this way, but break down all the commodities that you're buying when you buy a piece of real estate from drywall to gypsum, the copper wire to glass and all those sorts of things, it takes real world resources to produce that real estate.   Speaker 1 (00:48:27) - Real estate gives you advantages that gold and bitcoin don't like a reliable income stream and the ability to use leverage and terrific tax advantages. So that's why I'm a real estate guy. That scares gold, has a scarcity. What's really special about gold is it's one of the few things that's had enduring value for millennia, about 5000 years. You can say that about exceedingly few things. I guess you could make jokes about. It's intrinsic value. It's really not used that much industrially, but people have always flocked and gravitated toward that during times of uncertainty. And there's low supply inflation on gold that is very difficult to mine 2% more gold than it was the previous year. There were just challenges from exploration to mining and creating much more of this gold. And then thirdly, Bitcoin. You might not be that familiar with Bitcoin, but it takes real world resources, hardware, software and electricity to bring more Bitcoin into existence. There will never be more than 21 million bitcoins, so it has a fixed supply. You can't quite even say that about real estate and gold.   Speaker 1 (00:49:37) - A hard cap of fixed supply. More than 19 million bitcoin have already been mined. It's truly scarce and Bitcoin does have a role. It has some downfalls too, in case the government cracks down on it. I think that's the big risk with Bitcoin. But gold and dollars each have their downfall is difficult to transport gold across space due to its weight in its volume and security problems and then dollars. You can't transmit dollars across time due to inflation. Bitcoin is that one store of value. It's still volatile, it's still got some problems there, but it's the one store of value that you can transport across both space and time. You can't say that about dollars or gold. I'm a real estate guy. Real estate, you know, I think of it Ken is real estate is old and slow and analog and Bitcoin is young and fast and digital, so it is kind of a counterpoint. To the real estate with the Bitcoin. But yeah, if you need to build wealth and you don't have it yet, it's really difficult to invest in an asset class outside of real estate.   Speaker 1 (00:50:47) - Wealthy people's money either starts out in real estate or it ends up in real estate.   Speaker 3 (00:50:52) - Yeah, that's true. Yeah. I personally, I'm a big gold guy. I, I love being able to just throw a couple coins in my pocket and fly to wherever I want and pull them out and they're like, I got 4 or 5 grand.   Speaker 1 (00:51:04) - It's something tangible. You could actually look at it.   Speaker 3 (00:51:06) - It's nice. It's kind of nice to have that, you know, I don't particularly look at it as an investment, right? I look at it more as a hedge, an insurance policy, maybe a hedge against the dollar.   Speaker 1 (00:51:17) - Yeah, it's sort of like money insurance. I agree. And really a lot like an insurance policy. You hope you never have to use it, just like you hope you would never have to sell your goal. It's good money insurance. It's not a wealth builder. In my experience. It really just generally tracks inflation over time.   Speaker 3 (00:51:35) - Which is a good thing, by the way, especially now.   Speaker 3 (00:51:38) - I think what's interesting is have you had a chance to look at how much gold the central banks have been buying? I really have. So this is a really interesting point before we wrap up. So as you guys might know, central banks are in charge of printing money, basically. Well, other things, but one of those, that's one of them. So and they're kind of upset at the US dollar right now. Yeah. Because, you know, the world trades in US dollars and they're sitting on US dollars. And as we inflate and print US dollars, it looks like that a lot of them are buying gold, Right. And I would if, if they're they're trying to store their value in something that dollars so something other than dollars. I read an article the other day that said that we've been weaponizing the dollar against the rest of the world. Right.   Speaker 1 (00:52:28) - Right. So many foreign central banks, China, Russia and many more, they've really been loading up on gold these past few years.   Speaker 1 (00:52:36) - You see more and more international trade agreements, like you alluded to, cutting out the dollar and going through the yuan. You had the war in Ukraine, all these things increased geopolitical uncertainty. And that's why gold was on a tear and went over $2,000 recently.   Speaker 3 (00:52:49) - And then BRICs, BRICs is showing up. You know, that's the Brazil, Russia, India, China and South America. Right. And South Africa. Right. And I think there's a 30, 40 countries now. I've joined something like that.   Speaker 1 (00:53:04) - Yep. There's more and more. And they're not they're not pals of the United States.   Speaker 3 (00:53:07) - No, no. I don't know if you guys are watching this stuff, but it's something you have to watch. I mean, because your hard earned, your hard earned money is yours. And so you have to be a steward of it. You have to look at this stuff. It's not conspiracy theory stuff. You need to go out and Google this stuff and you'll see it's the dollar doomed. I don't know the answer, but I do know that you have to keep your eye on all this stuff.   Speaker 3 (00:53:30) - Right.   Speaker 1 (00:53:31) - Well, I'm glad you bring this up because one can speculate, one can make projections. But one of the few things that we do know and this is central to every investment that you make is that the dollar is going to continue to be debased. At what rate? We just don't know. But there are a few guarantees in life, but that's one thing that's virtually guaranteed. And really everything that we're talking about here hedges you against that. Again, dollars in stocks can easily be printed. Want to stay out of those sorts of checks?   Speaker 3 (00:53:59) - And if you could fix your rate while the government debases your dollar, you're winning.   Speaker 1 (00:54:05) - That's a winning formula for every million dollars in debt you have with just 5% inflation, you know the bank back 950 K after one year because wages and prices and everything, salaries are all higher. And with real estate, it's wow, your tenant pays all the interest for you while you're enjoying that debasement benefit. It's definitely counterintuitive. Get more debt. That's one of my favorite four letter words.   Speaker 3 (00:54:31) - Ha ha ha. Well, good. Keith, this has been awesome. So what's the best way people can reach you? I know I listen to your stuff, but I'm not sure everyone knows the.   Speaker 1 (00:54:40) - Get Rich Education podcast and get rich education YouTube channel. Real estate pays you five ways at the same time. Just regular buy and hold real estate. And it's actually okay that we didn't get into that because I made a free course with five videos, one on each of the five ways, just regular everyday buy and hold real estate pays and we're giving that away free right now at Get Rich education slash course. So it's a gift certificate and podcast and YouTube channel and again that free course real estate pays five ways which really reinforces why real estate is that generational wealth builder is a get rich education slash course. Awesome.   Speaker 3 (00:55:21) - All right, buddy, always great to see you.   Speaker 1 (00:55:23) - Love catching up, kids. Yeah. I hope that you enjoyed that vibrant conversation and a lot of original thoughts between Ken and I there.   Speaker 1 (00:55:36) - Ken is one of the more giving guys in the real estate industry. I like to hang around with the givers and reciprocate myself. One thing that I cannot take credit for as original is my part of the discussion where I was speaking about how the property is only the fourth most important thing in real estate investing. I learned at least some version of that from the real estate guys Robert Helms and Russell Gray. Now, when it comes to the prospect of a housing price crash, I think that a lot of the gloom and doom was that were completely wrong about that. Since 2020, you know, a lot of them have just dissipated or have gone away. Economic uncertainty that could not make home prices fall in any meaningful way like we've experienced the last three plus years and then last year a doubling of interest rates. Well, that couldn't really touch home prices either. Looking into the future, the rest of this year and into next year, I've got a good eight or so reasons here that home prices won't crash, although there could always be a black swan event, I suppose, from a pandemic to a direct hit by a meteor into the center of the United States.   Speaker 1 (00:56:46) - You are listening to someone that successfully invested through two recessions here. Home prices won't crash anytime soon because there aren't currently enough homes to house Americans. There are billions of dollars sitting on the sidelines right now just waiting for people to jump into the market. Lending guidelines have been strict for a decade plus, and that means those that own homes now can afford to make the payments. Home equity is also near record levels, so those that do have trouble making their payments, they wouldn't have to make a highly distressed fire sale. The government will do everything that they can to stop foreclosures, and on average, it takes 900 days to complete one. The population keeps increasing, although slowly US housing is still some of the most affordable in the world. And what higher interest rates do is that they also slow homebuilding. They slow that rate of new supply. This is all why housing prices cannot crash any time soon. We've got a fantastic show coming up here next week for you. If you're newer to this show or you just haven't seen my free real estate pays five Ways video course yet.   Speaker 1 (00:58:00) - Like I was telling Ken's audience about there, this is fundamental to you building the kind of life that you've always wanted for yourself. The course is truly free. I don't try to upsell you from that to some paid course. Perhaps the best thing that you can do for your financial future is to watch and understand all of the ways that you are paid. You can do that now at Get Rich Education slash course Happy independence Day. I'm Keith Winfield. Don't quit it.   Speaker 4 (00:58:35) - Nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of Get Rich Education LLC exclusively.   Speaker 1 (00:59:03) - The preceding program was brought to you by your home for wealth building get rich education. Com.    

Russell Gray is the co-host of the Real Estate Guys Radio show, now in its 26th year. On today's show we are talking about the current monetary environment and the risks inherent in today's FIAT currency based system. To connect with Russ or to learn more about the upcoming 22nd annual Investor Summit at Sea, send an email to summit@realestateguysradio.com, or visit realestateguysradio.com ----------------- Host: Victor Menasce email: podcast@victorjm.com

Why does everyone say OOO! when they see someone fall down? Why do we say YUM when we feed a baby? And what's the deal with fillers like UM? For this episode we're talking about non-lexical vocalisations with Dr Eleonora Beier and Dr Emily Hofstetter.  Also: linguists are diving into Grambank, a database with detailed information about grammatical features in over 2,500 languages. With its release, we're talking to project leaders Dr Russell Gray and our own Dr Hedvig Skirgård. Also, Hedvig gives us our yearly Eurovision language update. Ben's not here, so he won't complain.

Bank implosions, stubborn inflation, an expanding money supply … They're all symptoms of one BIG problem … The financial system is in trouble.   A lot of smart folks are concerned … And rightfully so.   Is your bank safe? How can you protect yourself? What should you be focusing on right now?   Tune in as The Rebel Capitalist and macroeconomic expert George Gammon joins us for a look at what happened, what's next, and what you can do to prepare. Visit our Special Reports Library under Resources at RealEstateGuysRadio.com.  

You can afford an $8M apartment building. Perhaps you just haven't really asked: “How?” The answer: syndication. Today's guests are The Real Estate Guys, Robert Helms and Russell Gray. They've had a profound influence on me. If you're an active real estate investor with some experience, caught the real estate bug, and want to go full-time, Robert and Russ are masters at helping you go bigger, faster with syndication. You can aggregate other investors' money to buy a deal that you could not afford on your own, like a large apartment building, self-storage unit, or car wash. You must find both deals and investors. Syndicators must follow SEC rules. When you find a deal, the numbers must work for investors. But it helps that your project has a deeper story and meaning. Russell Gray provides an example. The Real Estate Guys Radio Show - Real Estate Investing Education for Effective Action Twice annually, they host the live, in-person Secrets Of Successful Syndication event. Resources mentioned: Show Notes: www.GetRichEducation.com/441 Join the next Secrets of Successful Syndication seminar: https://ap216.isrefer.com/go/soss/A0011/  Listen to The Real Estate Guys Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Memphis & Little Rock property that  cash flows from Day One: www.MidSouthHomeBuyers.com Find cash-flowing Jacksonville property at: www.JWBrealestate.com/GRE Will you please leave a review for the show? I'd be grateful. Search “how to leave an Apple Podcasts review”  Top Properties & Providers: GREmarketplace.com Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free—text ‘GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold

Happy New Year! Welcome to our third annual TOP TEN READS of the year episode with our special guest, BookTuber RUSSELL GRAY of Ink and Paper Blog. Emily, Chris, and Russell whittled down the books they read in 2022 to ten of our favorites. You'd think this would add up to thirty books, but you'd be wrong. As is customary, we cheated (some more than others) and talk about more than ten books a piece, but what else would you expect from a trio of bibliomanes? We each also share two books coming out in 2023 that we're excited about. Russell: 1. THE DELUGE by Stephen Markley (1/10/2023 Simon & Schuster) 2. DECENT PEOPLE by De'Shawn Charles Winslow (2/14/2023 Bloomsbury Publishing) Emily: 1. THE WISE HOURS: A JOURNEY INTO THE WILD AND SECRET WORLD OF OWLS by Miriam Darlington (2/7/2023 Tin House Books) 2. CHAIN GANG ALL-STARS by Nana Kwame Adjei-Brenyah (4/4/2023 Pantheon Books) 3. THE INVISIBLE HOUR by Alice Hoffman (8/15/2023 Atria Books) Chris: 1. THE WRITING RETREAT by Julia Bartz (2/21/2023 Atria/Emily Bestler Books) 2. OUT OF CHARACTER by Jenna Miller (2/7/2023 Quill Tree Books/HarperCollins) All of the books mentioned in this episode are listed in the show notes https://www.bookcougars.com/blog-1/2022/episode171 We also announce our 2023 Readalong Theme: BOOKS ABOUT BOOKS! Our pick for the first quarter was published in 1917 and is one of the first bibliomysteries. Thanks for listening!

In order to have prosperity, it is important to be grateful for what is there and to be conscious of pulling the good out of whatever the occurrences are. It is also important to be prepared for what one is afraid of and to take action to solve those fears. In this episode, Spencer Shaw and Kim Butler talk about having a Plan B to protect yourself and your family, in case something goes wrong. Kim believes that humans have the ability to find the good in any situation, no matter how difficult it may be. They also cite examples of financial and weather-related challenges that her clients have faced in the past, and how they were able to overcome them. It is important to have a backup plan in case something goes wrong in life. Best-selling author Kim Butler and Spencer Shaw show you how to take more control of your finances. Tune in to The Prosperity Podcast to learn more about Prosperity Thinkers thinking and strategies today! Do you have a question you would like answered on the show? Please send it to us at hello@prosperitythinkers.com and we may answer it in an upcoming episode. Links and Resources from this Episode For resources and additional information of this episode go to https://prosperitythinkers.com/podcasts/ Jay Martin, How to Fix the Financial System (with Russell Gray and Brien Lundin) Show Notes Plan B as a main street knowledge Having whole life insurance as part of his plan B as a place to store cash The power of optimism in the face of adversity How to prosper in any economic climate The benefits of cash value life insurance Importance of long-term thinking in money management Why you should have a Plan B for your family's financial future Special Listener Gift Free eBook: Activating Your Prosperity Guide. Kim Butler's groundbreaking eBook/ audiobook explains why typical financial advice may be sabotaging your wealth... and what to do instead! Call to Action Get access to our first beta list: Email hello@prosperitythinkers.com using the subject line Cash App Review and Subscribe If you like what you hear please leave a review by clicking here Subscribe on your favorite podcast player to get the latest episodes. iTunes Stitcher RSS

Are we between a financial crisis and a currency crisis? Is the dollar as strong as you think? In the history of currencies, no currency has ever survived a 97% decline in value. Precious metals are like a canary in a coal mine for paying attention to what's going on with currency. Today, we're taking a deep dive into how the lens of the current economic landscape is impacting our decision making when investing. We might be hinging on the balance between INFLATION & STAGFLATION So we must position ourselves to benefit from the probabilities and mitigate some of the risks that are likely to happen as a result of current economic conditions. What is the next step for real estate investors? Can you make inflation pay off your debt? Debt is the greatest asset and you can use it to purchase real assets that appreciate in dollar terms. Don't try to get out of debt, the only way to outpace inflation is to benefit from inflation by using debt. Be sure to take this opportunity to learn all about where you WANT and NEED to be in an inflationary environment in this episode with Russell Gray! Take Control, Hunter Thompson Interested in investing in ATMs? Check out our webinar.   Please note that investing in private placement securities entails a high degree of risk, including illiquidity of the investment and loss of principal. Please refer to the subscription agreement for a discussion of risk factors. Tired of scrambling for capital?  Check out our new FREE webinar -  How to Ensure You Never Scramble for Capital Again (The 3 Capital-Raising Secrets). Click Here to register.   CFC Podcast Facebook Group

Book Tuber Russell Gray of Ink and Paper Blog joins us to talk about his reading of this year's Booker Prize nominees. He's read all thirteen books on the long list, talks about the novels on the shortlist, and shares some ideas about which book he thinks will win and why. For two women who claim to have been busy lately, we sure did manage to read a lot since our last episode! Emily even snuck in one more #BigBookSummer novel, THE DISPLACEMENTS by Bruce Holsinger, and two cooking-related books: BLACK, WHITE, AND THE GREY: THE STORY OF AN UNEXPECTED FRIENDSHIP AND A BELOVED RESTAURANT by John O. Morisano and Mashama Bailey, and MISS ELIZA'S ENGLISH KITCHEN: A NOVEL OF VICTORIAN COOKERY AND FRIENDSHIP by Annabel Abbs (audio narrated by Ell Potter and Bianca Amato). She also read a novel that's first coming out in January 2023 — she couldn't wait! — SMALL WORLD by Laura Zigman. Chris whipped through the next entry in the Alex Carter series, A GHOST OF CARIBOU by Alice Henderson which comes out November 6th. Then she decided to dig back into the early 20th century and read the first English translation of one of the first lesbian novels, ARE THEY WOMEN?: A NOVEL CONCERNING THE THIRD SEX (1901) by Aimée Duc, translated from German by Margaret Sönser Breen and Nisha Kommattam, and also MISS NOBODY FROM NOWHERE (1927) by Elizabeth Jordan. We're excited to talk with listeners who are reading our fourth quarter readalong, THE SEED KEEPER by Diane Wilson. Join us for a zoom discussion on 9/18 at 7 pm ET (email us at bookcougars@gmail.com) or over on our Goodreads page.

Today, let's talk about real assets and real relationships, Wall Street investing versus Main Street investing, and the concept of syndications with Russel Gray. Real estate is a real asset. It's as tangible and physical as gold, oil, and other things people use and depend on in the real world. On the other hand, owning a share of stocks, bonds, or mutual funds are claims on wealth, but they're not real wealth. So, invest in essential things to build a resilient real asset portfolio. And if you want to scale faster, invest in real people and unlock private capital. Don't Miss this year's Secrets of Successful Syndication on September 16th-17th! Sign up here: https://ap216.isrefer.com/go/soss-mccallen/A00118/ Key Points from This Episode: Russel defines real assets. Real estate is tangible. Stocks, bonds, or mutual funds are claims on wealth but they aren't real wealth. When times are tough economically, investors must focus on things that are real and essential. Housing combined with leveraged debt is the foundation of a resilient real asset portfolio. Russel talks about an instance when he lost control of his debt which resulted in losing control of the real estate. Russel wrote a book entitled, “How to Hedge Against a Falling Dollar.” How to multiply the purchasing power of your cash. What is one characteristic Russel looks for in a business partner? Russel shares how he and Robert Helms met and the backstory of The Real Estate Guys podcast. A special gift for Capital Hacking listeners! Wall Street investing vs. Main Street investing. Main Street investing is more personal. It has a small-town feel. Russel talks about the syndication business. When you create a syndication business, pick your advisory team well, even if you have to pay more. The syndication business is in dire need of ethical competent operators. People think it's hard to go big. But it's actually hard to be small. When you're small, you don't have economies of scale. The market is so big, there's plenty of room for everyone. Russel explains the concept of syndication. In Wall Street investing, Wall Street funnels down the money to Main Street by originating loans. The money comes from Main Street, goes through Wall Street, and comes back down to Main Street. Main Street investors can invest directly in Main Street real estate projects through a capital aggregator or the syndicator. A syndicator is like a banker without the regulation. Where would Russel invest if he were to invest in the future? Russel's tips on how to pick a market. About Russel Gray Russell Gray is Robert's sidekick on The Real Estate Guys™ Radio and TV Shows. Russ is a financial strategist with a background in financial services dating back to 1986. As a faculty member for the California Association of Realtors, Russ taught Real Estate Finance to Realtors® pursuing the prestigious GRI designation. He is a popular speaker and author. Robert and Russ have co-authored the very highly rated book Equity Happens. The Real Estate Guys Radio Show is an investment talk program broadcasting on conventional radio 1997. The podcast version is heard in over 180 countries. Notable past guests include Steve Forbes, Robert Kiyosaki, Donald Trump, Peter Schiff and a variety of industry leaders and subject matter experts.

Be inspired by today's guest, Joshua Oak! He'll share three capital hacking strategies that helped him fund his deals. His first attempt to raise capital failed, causing him to lose a great deal which he still regrets up to this time. But he didn't stop there. He'll talk about how he loaned money off his retirement fund, cross-collateralized it, and bought five houses. He'll also share how, just by talking to people about real estate, he came across a 12-unit apartment deal. He blended his cash with human capital and became successful even though he bought it at the beginning of Covid in March 2020. They've had these apartments for two years, and it has cash-flowed like crazy! Listen to his story now! Key Points from This Episode: Josh's backstory from 2013 about learning how to invest in real estate through podcasts. Josh's first property and cash flow. His first attempt at raising money that didn't work. How Josh used his Thrift Savings Plan (TSP) to loan $30,000. Josh's strategy of blending his cash with human capital to create wealth. His six-unit deal that didn't happen because of a lack of funds. Finding a deal simply by networking. Why and how to support Josh's investment deals. Tweetables: “Podcasting is where I've gotten all that education.” – Joshua Oak “Formal education will make you a living, the self-education will make you wealthy.” – Jim Rohn “Anybody can do this (podcasting). I mean, I don't have a college degree. I'm a firefighter. I'm not even a computer guy. So, you know, anybody can do this. It's just getting the education. And frankly, podcasting is the best platform to do so. I'd like to think I have a college education for free through podcasting.” Links Mentioned E16: Cashflow Ninja and Wealth Strategist MC Laubscher E125: “Clues in the News” with Russell Gray of The Real Estate Guys Radio Josh Oak's email Contact no. 620-804-1874 About Joshua Oak Joshua's current investment portfolio includes partnerships in a 12-unit apartment complex and 5 single-family homes. The 12-unit complex deal took creativity to put together and formed a $20,000 personal loan from Josh's coworker to pull it off! It is a fantastic deal and has provided Josh cash flow every month and solidified his desire to be financially free with real estate. He also owns 5 single-family homes as a 50% partner. These houses were his ‘foot in the door' to real estate investing. Josh loves real estate. He got his real estate license in 2017. His current strategy includes working on a cash-out refinance on the five houses and trying to save as much money as possible to take advantage of any opportunities that are about to present themselves, given the current state of the economy. His future goals include working on syndications or partnerships for larger investments, gaining experience with podcasting, and expanding his network.

Today, I'm speaking with Russell Gray. Russ is a financial and business strategist, real estate investor, and co-host of The Real Estate Guys™ Radio and TV Shows, which has been broadcasting weekly since 1997. The podcast version of the show has thousands of episodes and has been downloaded over 15 million times. Russ is an expert on the subjects of investment strategy, finance and real estate investment planning, and has consulted with hundreds of investors on their personal financial strategies. He's also the co-author of Equity Happens: Building Lifelong Wealth with Real Estate. In this episode, we talk about Investing in cash-flowing assets that protect you in a down economy, the differences between (inflation, deflation, stagflation, and shrinkflation), and why our current financial system is so broken! Want the Full Show Notes? To get access to the full show notes, including audio, transcripts, and links to all the resources mentioned, visit JustinDonald.com/75 Get the Lifestyle Investor Book! To get access to The Lifestyle Investor: The 10 Commandments of Cashflow Investing for Passive Income and Financial Freedom visit JustinDonald.com/book Rate & Review If you enjoyed today's episode of The Lifestyle Investor, hit the subscribe button on Apple Podcasts, Spotify, Stitcher, Castbox, Google Podcasts, iHeart Radio, or wherever you listen, so future episodes are automatically downloaded directly to your device. You can also help by providing an honest rating & review. Reviews go a long way in helping us build awareness so that we can impact even more people. THANK YOU! Connect with Justin Donald Facebook YouTube Instagram LinkedIn Twitter

Robert and Kim Kiyosaki are joined by an esteemed panel of experts including the Real Estate Guys, Russell Gray and Robert Helms, as well as Cryptocurrency expert, Jeff Wang for more on how investors use debt to create wealth and where we are headed with Crypto and why it's important. Plus, don't miss Robert's pick for the best investment option! We encourage you to not miss out. Also, if you enjoyed this segment and haven't seen the first part of Explosive Wealth Trends, you can find it now on YouTube. After viewing this event, take advantage of a special offer for YouTube viewers to help you get started as an investor: https://bit.ly/RDRpodcast3DP2 *SPECIAL OFFER* You'll get Robert Kiyosaki's complete Real Estate CASHFLOW Blueprint program and gain access to his proven step-by-step strategies. Plus, for a limited time – you'll also get access to 6 FREE LIVE Mastermind sessions with Robert's certified Rich Dad Real Estate experts - a $2,000 value (This offer is subject to change at any time). What's included: Robert's Complete CASHFLOW Blueprint online course and 3 additional free bonuses: The Rich Dad Personal Riches Profile (powered by the Myers-Briggs Type Indicator), Robert's Contracts and Forms Toolkit, and 7 extra sessions featuring Robert's Insider Secrets to Exploding your Cash Flow. https://bit.ly/RDRpodcast3DP2

Join Rich Dad Co-Founders, Robert and Kim Kiyosaki, along with their special guests the Real Estate Guys, Russell Gray and Robert Helms, as well as Cryptocurrency expert, Jeff Wang for an insightful discussion. They will talk Real Estate, wealth building strategies, how to use debt, and of course will discuss Bitcoin and Cryptocurrency. You don't want to miss this! Also, if you enjoyed this segment, be watching for the next segment coming soon – “MORE” Explosive Wealth Trends. After viewing this event, take advantage of a special offer for YouTube viewers to help you get started as an investor: https://bit.ly/RDWYouTube7DP1 *SPECIAL OFFER* You'll get Robert Kiyosaki's complete Real Estate CASHFLOW Blueprint program and gain access to his proven step-by-step strategies. Plus, for a limited time – you'll also get access to 6 FREE LIVE Mastermind sessions with Robert's certified Rich Dad Real Estate experts - a $2,000 value (This offer is subject to change at any time). What's included: Robert's Complete CASHFLOW Blueprint online course and 3 additional free bonuses: The Rich Dad Personal Riches Profile (powered by the Myers-Briggs Type Indicator), Robert's Contracts and Forms Toolkit, and 7 extra sessions featuring Robert's Insider Secrets to Exploding your Cash Flow. https://bit.ly/RDWYouTube7DP1