Podcasts about sfhs

In this episode, we sit down with Brian Ferguson, a real estate entrepreneur whose company owns and operates over 1,000 multifamily units, hundreds of single-family flips per year, and manages a significant retail portfolio. Brian shares how he built a vertically integrated business over the past two decades—and how operators can scale their team, protect their time, and stay disciplined across asset classes.Whether you're flipping houses, buying apartments, or building your first team, this episode is packed with hard-earned insights on building a business that lasts.Join us as we dive into:Brian's journey from motorcycle sales to flipping homes, building a rental portfolio, and scaling into multifamily and retailHow to run a lean, high-output team using EOS and deep personality testingWhy choosing the right first hires is crucial—and how to calculate when to make themBuilding operational systems that reduce turnover and unlock true scalabilityHow Brian balances multiple real estate verticals while staying focused on high-cash-flow opportunitiesHis multifamily buy box, why operational inefficiencies are his #1 value-add target, and what he's seeing in today's Texas marketAre you looking to invest in real estate, but don't want to deal with the hassle of finding great deals, signing on debt, and managing tenants? Aligned Real Estate Partners provides investment opportunities to passive investors looking for the returns, stability, and tax benefits multifamily real estate offers, but without the work - join our investor club to be notified of future investment opportunities.Connect with Axel:Follow him on InstagramConnect with him on LinkedinSubscribe to our YouTube channelLearn more about Aligned Real Estate Partners

Jeff is an accomplished real estate operator and Investors Relations Maverick. He has successfully deployed over $40M of equity into a $160M portfolio of assets under management and development, which consists of multifamily, luxury SFHs, ground-up development, and light/flex industrial properties.  Jeff's LP and GP portfolio comprises over 2000 doors under management and development.Jeff is a devoted family man who treasures quality moments with his amazing wife and business partner, Kim, and their three wonderful kids. Outside of running his businesses, his hobbies include boating, golfing, sharing his love for vintage cars and motorcycles, and inspiring young athletes as a coach for youth Travel Baseball.For LinkedIn (Resume), Facebook, X, YouTube, and to schedule a meeting with me, please visit:https://linktr.ee/jeff_ervickChapters00:00 Introduction to the Podcast and Guest03:30 Current Market Overview and Its Impact on Passive Investing06:25 Jeff's Journey into Real Estate10:00 Balancing W2 Job and Real Estate Investing12:43 Private Lending Experience and Strategies15:52 Understanding Infinite Banking and Its Benefits23:27 The Power of Strategic Investments25:53 Leveraging Whole Life Insurance for Financial Growth27:38 Rapid Growth in Multifamily Investments31:09 The Art of Raising Capital33:35 Educational Resources for Passive Investors36:35 Due Diligence in Real Estate Investments38:25 Bucket List Adventures and Investment Strategies42:45 outro CONNECT WITH OUR HOSTConnect with our host, Randy Smith, for more educational content or to discuss investment opportunities in the real estate syndication space at www.impactequity.net, https://www.linkedin.com/in/randallsmith or on Instagram at @randysmithinvestorKeywordsreal estate, passive investing, multifamily, private lending, infinite banking, market trends, capital raising, investment strategies, Jeff Ervick, Randy SmithSummaryIn this episode of the Gentle Art of Crushing It podcast, host Randy Smith interviews Jeff Ervick, co-founder of Valorous Capital. They discuss the current state of the real estate market, Jeff's journey into real estate investing, and the balance between W2 employment and real estate. Jeff shares insights on private lending, infinite banking, and how he scaled his multifamily portfolio to over 2,000 doors in just two years. The conversation also touches on the challenges of raising capital and the importance of building trust with investors. Jeff provides valuable resources for new investors and emphasizes the need for continuous education in the passive investing space.

The Canadian housing market is experiencing one of its most dramatic shifts in recent history, as the gap between government promises and market realities continues to widen. While policymakers have focused on demand-side measures like home-flipping taxes, actual housing starts have declined significantly. Meanwhile, an unprecedented number of rental units are entering the market, leading to falling rental prices.Despite political rhetoric about increasing housing supply, overall housing starts have dropped 19% since their peak in 2021, now sitting at 239,000. However, rental unit construction is surging—up 44% year-over-year—comprising nearly half of all new starts. A record-breaking 144,000 rental units are currently in development, which is already having a profound effect on the market.Rental rates, which had been rising for 38 months straight, have now fallen for four consecutive months, with national averages dropping from a peak of $2,196 in January 2024 to $2,100 today. Shared accommodation listings have surged 42% year-over-year, with rates declining 7.6%, signaling a shifting dynamic in the rental market.While rental construction is booming, single-family home (SFH) completions tell a different story. In January 2025, only 3,800 SFHs were completed—the lowest monthly total since 1997. This ongoing supply crunch suggests that SFH prices may hold firm, even as the condo market weakens.Inflation in Canada remains relatively stable, sitting at 1.9% in January, marking six consecutive months at or below the Bank of Canada's 2% target. However, the vast majority of inflation—1.3%—is being driven by shelter costs. Mortgage interest costs, a key driver of inflation, have been slowing, with the most recent increase at just 0.2%, the weakest since April 2022.Employment Insurance (EI) claims are rising at an alarming rate. Nationally, claims increased 14% year-over-year, from 245,000 to over 280,000, while Ontario saw a 29% jump, from 76,000 to 98,000. These numbers suggest weakening economic conditions, which could drag down GDP growth in the months ahead.On the mortgage front, December saw a staggering 90% year-over-year surge in mortgage originations, largely due to renewals. Many homeowners who locked in ultra-low rates five years ago are now facing a 35% payment shock, putting additional strain on household finances.At the same time, housing inventory is surging. January saw an 11% month-over-month increase in new listings—the largest ever recorded. BC led the way with a staggering 29% increase. Pre-sale condo inventory in Greater Vancouver has nearly doubled from 7,000 to 12,000 units, pushing total available homes in the region above 25,000. This supply surge is making price increases unlikely in the near term.February data indicates a shift in market momentum. After months of year-over-year sales growth, February saw a 12% annual decline in sales activity. Prices are also softening, with median home prices in Greater Vancouver dropping $20,000 to $900,000—a 10% decline from peak values. _________________________________ Contact Us To Book Your Private Consultation:

What's behind the housing affordability crisis in America?Real estate prices are off the charts, and unless you happen to be a high-net-worth individual, it's nearly impossible to buy a home right now.So, WTF is going on? Is there anything we can do about it?Angela Rozmyn is the cocreator of Women's Personal Finance, a platform that provides empowering financial education for women and nonbinary people.She is also a passionate advocate for affordable, sustainable housing, working a day job for a company that builds LEED Platinum real estate projects.On this episode of Queer Money, Angela joins us to discuss the myriad reasons for the housing affordability crisis in America.Angela explains why the supply of homes has not kept up with demand, how interest rates impact housing costs, and what's behind the NIMBY attitudes that drive real estate prices up.Listen in to understand how it impacts a community when its service workers can't afford to live where they work and find out what you can do to advocate for affordable housing in your city.Topics Covered What makes Angela an expert in the realm of affordable housing issuesWhy it's important to consider transportation costs as part of your housing expensesHow it impacts our communities when service workers can't afford to live where they workWho benefits from increasing home prices and who does not6 reasons for the housing affordability crisis in AmericaWhy the supply of homes has not kept up with demand in the USHow interest rates, permitting issues, labor costs and zoning affect real estate pricesWhy developers aren't building starter homes anymoreWhat's behind NIMBY attitudes in the US and how they impact housing costsThe advantages of adaptive reuse, i.e.: turning vacant commercial buildings into affordable housingAngela's take on investors who bought up SFHs during the Great RecessionWhy people are migrating to high-density cities in the Sunbelt (and what to consider before you join them)Providing affordable housing for the growing number of single occupantsWhat you can do to advocate for affordable housing in your communityFor the resources and to connect with our guests, get the show notes at: https://queermoneypodcast.com/subscribe Follow us:Queer Money Instagram Queer Money YouTubeQueer Money on TiktokDownload your FREE Queer Money Kickstarter a 9-step Guide to Kickstart Your Journey to Financial Independence

We've already had more inflation in this young 2020s decade than the entire 2010s. If the next forty years have as much inflation as the last forty, gas will cost $13.38 per gallon, the average home $1.88 million, and the average rent $59,000 annually.  Inflation impoverishes most people. You can profit from it 3 ways at the same time. Watch the free 3-part video series: GetRichEducation.com/TripleCrown.  The 30-year fixed rate mortgage is a uniquely American construct. It virtually exists nowhere else in the world. I compare this to mortgage terms in Europe, Canada and Australia.  In much of the world, homeowners have had their mortgage payments double overnight! Trends that won't soon be disrupted: more inflation, people need to live somewhere, there aren't enough places to live. That's so simple! Invest in it. Rents are increasing the most where little new supply has been added. There's a myth that gigantic institutional investors are gobbling up all the single-family rental homes. But they only own 3% of the market. Mom & pops own 80%. Single-family rents are up 3.4% per CoreLogic. Detached SFHs are up more than attached types. Property prices and rents are positively correlated. Some people falsely think that they move inversely. Resources mentioned: Profit from inflation 3 ways: GetRichEducation.com/TripleCrown 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. Learn how the misery of INFLATION is altering BOTH your quality of life and the return on ALL of your investments… … also, many people are now having their mortgage payments DOUBLE overnight and IT'S creating pain, then, what are the factors affecting the future direction of RENTS - all that, and more, today on Get Rich Education!  ______________   Welcome to GRE! You're listening to one of the longest-running and most listened-to shows on real estate investing. This is Get Rich Education. I'm your host, Keith Weinhold - the voice of RE since 2014.   I don't know if you fully realize how much inflation is steering all of your investments - and it's emphatic at a time like this when the dollar is down 25% cumulatively just in the last four years. Gosh!   And I've got some jaw-dropping inflation fact to share with you soon.    We'll get to inflation's RE affects shortly. But here's what I mean.    In stocks, they keep riding up on a wave of optimism, anticipating a Fed interest rate cut - largely due to future INFLATION expectations. Yes, there's jobs & GDP and some other factors.   But the stock market - which is a FORWARD-looking market - it moves based on what's expected to happen 6 to 12 months from now.    STOCK investors know that rate cuts open the floodgates to get us closer to the “easy money” days again.    That's why - as backwards as it is, the worse the economy looks, the lower that inflation tends to be, and then, in turn, the lower that interest rates can go, which the stock market likes.   So a worsening economy often pumps up the stock market. Soooo backwards.    Just look at what happens historically. Recessions sound bad. Yet what happens is that rates get cut in a recession - because the economy needs the help.    But nearer-term, it's this ongoing expectation of the rate cut - that's been looming out there for months but hasn't happened - which CAN keep propelling the stock market to higher highs. It's already hit all-time highs here recently. You can make the CASE that stocks should keep floating higher from here… based on that premise.   Before we look at real estate & inflation. Understand this.    Inflation has already widened the divide between the affluent and the deprived. That divide has gone from a gully to a canyon.   But... my gosh! Here's the stat that I want to share with you. And you're really going to get a sense for the gravity of what you're living through this decade.   We've already seen more inflation in the first 51 months of the 2020s decade than in the ENTIRE decade of the 2010s. Already.   This gets really interesting. Let's look at about the last four decades here.    Alright, in the 1990s decade, America had 34% cumulative inflation. Let's go ahead and… we'll associate this decade with President Bill Clinton.    We won't tie any President to the inflation number because there are lag effects and other factors. A President really can't take the credit or blame, in most cases. Just marking the era here.   So, 34% inflation in the 1990s.    The 2000s decade saw the GFC and… 29% inflation. Most of those were George W. Bush years.   The 2010s decade saw lower inflation → Just 19%. So that's under 2% a year. These were mostly the Obama years here in the 2010s.    Little flex there from the former Commander in Chief.   Then the 2020s decade → have seen, like I alluded to, and under Joseph Robinette Biden, Jr. - yes, as the oldest sitting president ever, it's easy to forget that he's a “junior. In this young 2020s decade, we have, 21% cumulative inflation. Already.   So this figure is after just the first 51 months of this decade, if we're counting from 2020… and this is largely due to supply shortages from the COVID pandemic.    So 21% ALREADY this decade… and just 19% ALLLL of last decade which was a full decade. That's the impact.    That's reflective of what you see in home prices and rent prices and utilities, transportation, labor, and almost every facet of your life.… and what you see in your weekly Costco bill and Trader Joe's bill.    Who have we left out here? A one-term president, so far? Does somebody feel left out.    Yes, that is the actual person of one Donald John Trump.   Psssshhh!   All of those figures I cited are from the BLS, and I've been rounding to nearest whole percent.   But get this! Inflation over the next forty years could make the LAST 40 years seem like a picnic.    That's partly because we're $35T in debt and that figure now grows by $1T every single quarter… every 90 to 100 days. So we MUST keep dollar-printing to help pay it back.   But just, if the last forty years repeats itself, by the year 2064, which is the next forty years, we'll see these prices. Prepare for a future that looks like this: Gas at $13.38 per gallon The home price at $1.88 million Average rent at $59,000 per year And the average salary at $104,000 That is if inflation over the next 40 years, looks like that last 40 years. Also, note how salaries don't keep pace with prices. That $104K average salary in the year 2064 doesn't sound as high-flying as those other figures.   Well, this is all really frustrating for consumers… and even debilitating to one's standard of living. Remember, this latest wave of inflation brought us the biggest YOY increase in homelessness - based on HUD figures.   and why you need to invest in something that reliably BENEFITS from inflation and pays you an income at the same time.    Look, here's really, the deal. Dollars are abundant. So then isn't it a paradox that a major spike in the supply of dollars would create more homelessness?   Well, you know that dollars are there for your taking - because so many more have been brought into existence. Dollars are abundant. So as they cycle through the economy, rather than going through the consumer motions, you can build your diverter. That's where the world of abundance exists, so get into that flow.   Ultimately, REAL capital is scarce. Your time and energy are scarce. Natural resources are scarce. Labor is scarce.   What's frustrating is that money ought to reflect that scarcity if it is going to accurately convey the value that enables people to make capital accumulation decisions.    And alas, we're doing our measuring in dollars and the dollar is not remotely scarce.   The middle class and poor often have wages that don't track inflation, yet they disproportionately suffer the higher consumer prices.   The investor class owns assets that float up with inflation. And GRE listeners will do even better than that.   As income property owners with mortgages, we're winning three ways at the same time with the Inflation Triple Crown. That's your dollar diverter.   Alright, so that's longer-term inflation. I've been talking in terms of decades - both the past and with an extrapolation into the future to 2064 there - and it's really rather sobering.   Well, what's the more CURRENT inflation situation? The situationship? Ha! What's the situationship now?   In trying to quiet it down to their 2% target, the Fed has run into so many hurdles that you'd think they were training for this summer's Olympics in Paris.   After it peaked over 9% two full years ago now, inflation's been bouncing near 3-and-a-half-percent for a year and they just keep having trouble getting it lower than that.   Hmmm... would we say that this could turn into Jerome Powell's three-quarters life crisis? We'll see.   Rising inflation is one of the key factors that brought down the Roman Empire. They famously experienced hyperinflation after a series of emperors lowered the silver content of their currency, called the denarius.    Today, some lament that the dollar isn't backed by gold, silver, or anything else.   But it is.   It's backed by the world's most powerful military, strongest economy, reserve currency status, international trade agreements, and you also… must pay your taxes in dollars.    Dollars are still liquid and useful… but perpetually debased, so get them and then transition out of them.    Yet, at the same time, we're also the greatest debtor nation in world history. The easiest way to pay it all back is to simply print more and inflate more.   So that's why it's almost inevitable that dollars will keep being worth less... and BTW, the two words “worth less” sound awfully close to the word “worthless”. Ha!    That's where we keep heading.   Until you can send a Venmo request to the Fed to compensate you for your loss in purchasing power, we need to actually do something about this.    And the dollar that you had when you started listening to me today could very well now only be worth 99 cents. Ha!   We can either have our standard of living degraded by inflation or we will decide to profit from it.   So, if you haven't yet, check out GetRichEducation.com/TripleCrown.   Rather than impoverish you, learn how you can make inflation CREATE wealth for you three ways at the same time with that free, 3-part Inflation Triple Crown video series. Good learning there.   It's free & easy to watch, again, at GetRichEducation.com/TripleCrown   Inflation seemingly seeps into everything.   Inflation took down the commercial sector - Apt buildings & offices. Apts are down 30-40% in the last two years. It's all because inflation made the Fed panic and jack up those rates.   If that's not jaw-dropping enough. Office values are down 80%+ in the last two years. 80%+, 90%+ in some cases.    Of course, office RE got the double-whammy of the inflation-induced interest rate hikes AND the Work-From-Anywhere movement.   That leaves residential 1-4 unit properties in good standing - and still impacted by inflation, but LESS impacted by inflation.    Yeah, your 1-4 unit RENTS are up - and I'll talk more about rent later in the show today.    inflation also jacked up your expenses like insurance, utilities, maintenance & repair cost and more.   But as we move away from the inflation conversation now, of course, one big reason that 1-4s have stayed resilient is the American privilege of LTFIRD - and the fact that it's 30 years for most US properties.   In fact, in 2022, 89% of homebuyers applied for the 30-year.   I think that you're about to get more appreciation for this… perhaps than you've ever had.   The 30-year FRM is a UNIQUELY American construct.    And, BTW, some people don't seem to know what the word “unique” means. You've probably heard people misusing this word all the time.   Unique does not mean something that's sort of different.    Unique means “ONE of a kind”. Unique means something that does not exist ANYWHERE else.    What do I do here on this show? Besides giving you the occasional geography lesson as a side dish to your real estate, I do this with vocabulary, grammar, and syntax as well, don't I?    Even though my own is surely imperfect.   Anyway, the reason that the 30-year mortgage can exist is due to our deep financial markets - especially our secondary market for mortgage-backed securities, where your loan gets packaged up and purchased by a bond investor - a bit like Ridge Lending Group President Caeli Ridge & I touched on last week.   The reason that mortgage-backed securities are attractive to investors in the U.S. and across the globe is because their government sponsorship makes them safe investments over long periods of time. They also provide a fixed payout to the MBS holder.   And see, the rate on the 30-year fixed-rate mortgage tracks closely to 10-year Treasurys because “U.S. real estate is almost as good an investment as a U.S. Treasury bond.”   They've got Fannie & Freddie insurance.   And that entire MBS process now has more guardrails in it than we had before the Global Financial Crisis.   We're talking about the foundation here - really - of where you get your big lumps of money from - the 30-year FRM and its uniqueness.   Compared to the world, the US has very little variable rate debt.    Less than 4% of American mortgage borrowers have debt that's on rate terms of a year or less. Over 96% of US debt is LTFRD, defined as 10 years or more.   That is virtually unparalleled worldwide. To compare us to some other developed nations, mortgage borrowers in Germany - just 47% of them have long-term fixed debt - and none of them can get 30-year debt.   Long-term debt, again, defined as ten years or more,  Is little to ZILCH for mortgage borrowers in Canada, the UK, Ireland, Italy, Sweden, Finland, Australia, and other developed nations like them.   In Canada, the most common mortgage terms reset to the prevailing market interest rate every five years.    In Finland, their mortgages reset annually or faster. Gosh, can you imagine if your mortgage rate reset every year like it does for the Finns?   Sheesh, that's more often than some people lose the remote control or rearrange their furniture.   OK. So what's this really mean?   Ya gotta… pour one out for most mortgage borrowers in the rest of the world.   They can't lock in their mortgage interest rate for the long-term. So with rates doubling or tripling, starting from 3 years ago, it's totally ruined a lot of foreign homeowners.   Look, what if you're middle class and your monthly mortgage payment soars from $1,893 on Tuesday up to $3,415 on Wednesday?   That's what's happening elsewhere. It can go up 50% overnight and nearly double overnight in Australia, Europe and elsewhere.   But in the mortgage-advantaged US, we're safe.   If we buy at an 8% mortgage rate on a 30-year fixed amortizing loan today—just the plain, vanilla loan: If rates rise to 10% later, you're happy to be locked-in at 8% If rates fall to 6% later, you'll refinance Note that I refrain from saying "just refinance". I don't like the word "just". You'll still need hours to provide documentation and your credit score will be checked. But it's worth it.   You won't “just refinance”. Ha! You'll refinance.   So think of it this way then, you can alter your deal with the bank whenever you want—and usually with no prepayment penalty. Yet the bank can't alter it on you.   What did Darth Vader say to Lando Calrissian in the “Empire Strikes Back?”. I am altering the deal, pray that I don't alter it any further.    Ha! We better not play that clip here. I don't know the copyright laws with LucasFilm or Disney there. Ha!   But you're not a dark lord of the Sith for doing it… for altering the deal on the bank. You're playing within the rules.    This is almost an unfair advantage for Americans.   The bottom line here - with this unique American advantage, is that, as rates change, you get to play both sides of the game. And that's why we add smart properties with loans.    We turn that into wealth, with compound LEVERAGE.    Now, mere compound interest, that's a vehicle for you to rely on more for your shorter-term funds, your cash or what you're keeping more liquid.   Long-term wealth is build through compound LEVERAGE.   Short-term funds - that's for compound INTEREST.   And… your bank is getting rich off of YOU. The national average bank account pays less than 1% on your savings. If your money isn't making about 4-5% today, you're losing your hard-earned cash to inflation.  What I do, is keep my dollars in a private LIQUIDITY FUND. You can do this too. Your cash generates up to an 8% return with—COMPOUND INTEREST—year in and year out instead of earning less than 1% sitting in your bank account - or even 4-5% elsewhere. The minimum investment is just $25K. You keep getting paid until you decide you want your money back. This private LIQUIDITY FUND has a decade-plus track record - and they've always paid their investors 100% in full and on time. I would know… because, I'm an investor with them myself. See what it feels like to earn 8%. A lot of other GRE listeners are. To learn more, just text the word FAMILY to 66866 to learn more about Freedom Family Investments' LIQUIDITY FUND. Get 8% interest! Just do it right now, while you're thinking about it. Text FAMILY to 66866.   More straight ahead, including what's happening with rents. I'm Keith Weinhold. You're listening to Get Rich Education. _____________   Welcome back… you're listening to Episode 503 of Get Rich Education. I'm your host, Keith Weinhold.   We've got a poll result, from our Get Rich Education Instagram Page.    The poll question was simple. “When buying property, what's more important?”    The purchase price or the mortgage rate.   71% of you said the purchase price. 29% of you said the mortgage rate.    Of course, both are important, but I think that the PURCHASE PRICE is the best answer - because your purchase price stays fixed for the life of your ownership period, and you can CHANGE your fixed mortgage rate and make it malleable… whenever it suits your needs.   As we talk about where the OPPORTUNITY is today, though multifamily apartments are going to bottom out sometime and therefore, at some point, they'll make a wise investment - who REALLY knows - maybe the time for larger apartments is now…   … one opportunity is… giving good people OPTIONS during a housing affordability crisis.   And what's going on right now is that… let me put it this way… when people have a hard time affording their own home today, basically (ha!) people are having a hard time transitioning from resenting their landlord to bickering with an HOA.    Ha! That's kind of how the world works.   Seemingly everyone would rather be bickering with an HOA rather than resenting their landlord.    A lot of renters want to be buyers… they can't… and that isn't expected to change anytime soon… as prices will likely stay elevated… and mortgage rates are staying higher, longer too.   These things are ALMOST “knowns”. It's often wise… to invest in trends that are known. Nothing's completely predictable, but when you're looking for a place to park your investment dollars, a few other things… are known… right now.   And AI is not expected to change what I'm about to tell you… anytime soon.   VR - virtual reality is not about to change what I'm about to tell you anytime soon.   AR - augmented reality isn't either. Machine learning won't imminently disrupt this.   And that is, that… everyone expects more long-term inflation. At what rate, no one knows.   People will need to live somewhere… and there are not enough places to live.   Those three facts, right there, are so simple. I love simple. Ha! One reason I love simple things is that I can remember it.    So many investors - investors in all types of things, say, from tech EFTs to junior mining stocks to crypto - you can make money there.   But, at times, investors will unnecessarily go out on the risk curve and GUESS and speculate… at a future trend.    Some are right. They're often wrong, and adopting too much of that approach… that's exactly when your risk-adjusted return goes down throughout your investor life.   Instead, you can get great returns - real estate pays 5 ways-type of returns - in these trends that I just described that are near certainties.   Why guess? When instead, you can almost be certain.   Often times, the certain thing is right… there.    It's often easier, like I think I brought up on the show once before, inspired by Jeff Bezos - don't ask what will change in 10 years.    The more insightful question and profitable question that fewer people think to ask is actually - “What will be the SAME in ten years?”   Well, when we talk about rents and the fact that tenants WILL keep paying you to live somewhere ten years from now, the trend that's taking place here in the mid-20s decade - here in the mid 2020s, is that… Rents are increasing the most where there hasn't been enough new supply added - up 5-6% in parts of the Northeast including New York and Boston - Seattle too… and parts of the Midwest. Detroit and Honolulu rents are each up about 5%.   Rents are decreasing the least, and even declined - where they've added lots of new supply recently, like Austin, Texas and Miami, where they're down 3% or more in each. New Orleans is another major city that's down - at minus 1%.    But among the larger cities, Austin, Texas is the WORST performer in the nation right now.   If you're listening to this either this week or you're listening to this ten years from today, if you want to know future rent trends, look at where they're adding supply.   Especially in apartments. But all these new apartments will fill up and nationally, they're building fewer apartments this year than last year's apartment-building boom.   When we talk about rents and who owns SINGLE-FAMILY HOMES, there are a few myths that I want to help bust for you here.   There seems to be this misconception or misinformation that GIANT Wall Street firms are buying up all the SFRs. That's just not true.    Now, there is more participation from the big firms than there has been historically, but those that own 1 to 9 SFRs… which is our definition of mom & pop investors here… constitute 80% of the SFR market.   80% own one to nine units. Now, you might own more than 9.    In fact, 14% are in that next tier up, owning 10 to 99 SFRs. Then 3% - known as small national investors own between a hundred and a thousand.   And, what's left, the big institutional investors - those that own 1,000+ SFRs - and you've heard of some of these companies - Invitation Homes, and another is American Homes 4 Rent.    Progress Residential, Blackstone, First Key Homes  - all those big players own just 3% of the market.   So again, 80% are the small ones - the mom & pops… a highly fractured market.   There are a total of 82 million SFHs in the United States. Out of all of them, do you have any idea what percent are OOed and how many are rentals?   It's 83% OOed and 17% of the single-families are rentals. So about one-sixth of SFHs are rented out.   Now, here's the thing. Some people tend to think of mom and pop single-family rental operators as unsophisticated charity case workers who never raise rents.    That's part of the perception out there.    But that narrative has never really been true, and, in fact, the COO of American Homes 4 Rent - his name's Bryan Smith - recently brought up this key point on their recent earnings call.   He said that while historically mom and pops hadn't always priced directly to market because of a lack of market data, "they've migrated into a strategy that's closer to ours."   How is this and why is this? Anymore, why ARE mom & pops raising rents just about as aggressively as the big institutional players.    It's really increased transparency on the rents that landlords are asking… through internet listing sites like Zillow.    It's not that mom and pops didn't increase rents before. (I mean… just look at what happened with rising rents in the 1970s and 80s before institutions were in the sector.)    But when there's a lack of rent amount transparency, it takes longer for operators to discover and adjust to market pricing-- especially for smaller players in a deeply fragmented market.    That's the part that's changing.   But see, increased transparency works both ways. It's good for you and bad for you as a property investor.   This information helps tenants too. In upswing markets, operators may push rents faster than they would otherwise.    But in a downswing market, operators may cut or keep rents flat faster in order to lease the unit.    Because tenants can easily see what other LLs are charging and compare features. When you price too high, units sit vacant and generate no income.   Since renters benefit from increased transparency too, if they see two similar homes, they're usually picking the better deal.   And increased transparency is why NEW lease rent growth is cooling off.    In fact, CoreLogic just released their latest SF Rent Index report last week. It showed that, nationally rents are up 3.4%, which coincidentally, happens to be the same as the latest CPI inflation number.   Detached properties are seeing more rent growth than ATTACHED ones - like townhomes. If you think about it, that makes sense. Townhomes are in less demand now.   Because the homeownership dream, is when one moves out of the apartment & buys a detached house.    And since that's so unaffordable to buy here in the 2020s decade, that's why more people are willing to pay more for to rent the detached type.   Note that SFR rent growth has moderated since mortgage rates spiked-- further dispelling the sticky myth that rents boom when home sales fall.   Remember - when homes price growth is really hot - like it was in 2021 and 2022 - near 15% - rent growth tends to be hot too. It was ALSO near 15%.   And when home price growth is moderate, like it is now, well, rent price growth is moderate too.   Prices and rents move together. They're POSITIVELY correlated. Some people think they move inversely… and we're looking at history over hunches again - what REALLY happens here.   So though you're almost certainly going to get nominal rent growth over time, it's not a good thing for you to count on it in the short-term - it NEVER is, in any era.   The time for you to push rents is, of course, in any market, when you go for NEW leases. A new lease with a new tenant is going to be higher than a renewal lease.   It's the ol' - this has been a good tenant for three years, so I don't want to push the rent too hard & lose them.    To review what you've learned today, inflation is affecting ALL of your investments, 30-year FRMs are a UNIQUE American advantage…   …it's wise to invest in future trends that are KNOWN, if you want to know what is going to happen with rents in the near future, look where they've added supply.    Less new supply correlates with more rent growth… and large institutional investors own just 3% of SFRs.    If you enjoy the show, please, tell a friend about it.   Isaiah on LI had the most flattering comment. Over there, he wrote and called GRE “The best podcast on the planet.”    I… really don't think that I can take credit for that, though… I'd like to think we're a good resource for building your wealth through REI and regularly informing you, giving you ideas that you've never thought about before that add real value to your life.   You've heard of Bidenomics. The first portmanteau type that I ever heard about a President's economic policies is REAGANomics, though it was a little before my time.    Here on the show next week, with us, will be none other than “The Father of Reaganomics”.    Yes, late President RONALD REAGAN'S Budget Director will be here next week. Basically, he was Reagan's “Money Guy”.    His name is David Stockman and he often met with the President in the Oval Office, advising Reagan on economic affairs.   I have asked David Stockman, if besides talking about the condition of today's economy next week, he'll also discuss real estate - and he agreed to do so.    That's “The Father of Reaganomics”. You can look forward to he & I together next week here on the show.   You might be one of the listeners that's been here every single week since 2014 - just like I've been here for you.     A new podcast is published every Monday. If you want more our DQYD E-mail Letter is published and sent about weekly, that's typically been on Thursdays lately. Then, there are many new videos published each month over on our Get Rich Education YouTube Channel. Those are the main three places that you can find us.   Until next week, if you enjoy listening, I really appreciate if you would told a friend about the Get Rich Education Podcast.    Until then, I'm your host, KW. Don't Quit Your Daydream!

John Fedro, a mobile home investing expert, joins host Ash Patel on the Best Ever Show. In Part II of this two-part interview, John discusses why he's NOT interested in RV parks, the roadblocks to scaling, and why he's currently not raising capital — an admission to which Ash responds with a story that changes John's perspective on raising capital, and likely yours, too. John Fedro | Real Estate Background Mobile Home Madness Based in:  Austin and Tampa Portfolio: 100+ mobile homes, a handful of SFHs, and 5 mobile home parks Say hi to him at: Spotify https://www.youtube.com/@mobilehomeformula www.mobilehomeinvesting.net Best Ever Book: Bringing Out the Best in People by Aubrey C. Daniels Sponsors: InvestHER

John Fedro, a mobile home investing expert, joins host Ash Patel on the Best Ever Show. In Part I of this two-part interview, John discusses how he accidentally got into mobile home park investing, the strategy behind buying individual homes rather than the parks, and how, as a solopreneur at heart, he runs a small shop. John Fedro | Real Estate Background Mobile Home Madness Based in:  Austin and Tampa Portfolio: 100+ mobile homes, a handful of SFHs, and 5 mobile home parks Say hi to him at: Spotify https://www.youtube.com/@mobilehomeformula www.mobilehomeinvesting.net Best Ever Book: Bringing Out the Best in People by Aubrey C. Daniels Sponsors: InvestHER

We talk with student-athletes and our assistant athletic director about the mental health benefits of playing sports and its accompanying challenges. HINT: balance is key! Stay tuned to the end to learn more about the new support group coming to SFHS.

Get our free real estate course and newsletter: GRE Letter Apartment construction is falling. It's not because banks are pulling back from lending. Projects aren't feasible for builders. Housing market intelligence analyst Rick Sharga returns to discuss the real estate market.  We discuss: real estate price movement, affordability concerns, expected mortgage rate changes, migration, price reductions, new homes vs. existing homes. Can anyone even find a new-build $225K detached SFH today? They're nearly extinct. Homebuilders are still buying down mortgage rates for you into the 4%s and 5%s at GREmarketplace.com. America needs more SFHs, especially at the entry-level.  Apartment rents have declined a little. SFH rents are up about 3% year-over-year.  Delinquency and foreclosure activity remains low. These have a strong correlation with unemployment rates. The volume of homes sales should increase this year, but only by perhaps 10%. A recession is still quite possible later this year and expected to be mild. Every region of the nation is currently experiencing residential RE price growth.  When mortgage rates fall, more new buyers than sellers are expected, pushing up property prices. Resources mentioned: Show Page: GetRichEducation.com/496 Inquire about business with Rick: CJPatrick.com Rick Sharga on X: @ricksharga LinkedIn: Rick Sharga 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:   Keith Weinhold (00:00:00) - Welcome to GRE. I'm your host, Keith Weinhold. Tons of new apartments were built last year, but that's abruptly going to change going forward. You'll learn why. Then a housing market intelligence analyst and I break down what's happening in the real estate market and the future direction of rents, prices, foreclosures, interest rates, and a lot 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 GRE to 66866. And when you start the free newsletter, you'll also get my one hour fast real estate course completely free.   Keith Weinhold (00:01:16) - It's called the Don't Quit Your Day Dream letter and it wires your mind for wealth. Make sure you read it. Text GRE to 66866. Text GRE 266866.   Corey Coates (00:01:34) - You're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education.   Keith Weinhold (00:01:50) - Welcome to grow from Alexandria, Egypt, to Alexandria, Virginia, and across 188 nations worldwide. I'm Keith Weinhold, holding your inside get rich education. I'm grateful to have you here. A few weeks ago, I discussed all the apartment buildings that were constructed last year. One thing that you'll often hear out there today is that apartment construction is now falling because banks are pulling back on construction lending. But no, it's really not quite that simple. In fact, that's not even the top reason for construction delays now and going forward with apartments. The number one reason for the delays today is that the project is not economically feasible at this time. That's what the NMC tells us. All right. So what does that really mean? Well, it means that projects aren't penciling out.   Keith Weinhold (00:02:44) - In other words, apartment developers, they can't generate the returns that they need to justify the project to their capital partners, those that are funding the building. And this is, by the way, not about greedy developers, because contrary to some of the noise, it's the fact that developers do not self-fund their projects. They get the money from others. So yeah, it's the developer's job to convince investors and lenders to inject that capital. And that is just harder to do right now. Despite developer's best efforts and higher rates are obviously still contributing to the problem. It's not so much that the construction financing is not available, because for residential, it's often there. It's available. The thing is, is that apartment mortgage terms and rates are way less favorable than they were a couple of years ago, as we all know. So developers, I mean, they're paying a higher interest rate then. And you therefore need higher rent to cover that higher interest rate unless you can cut a lot of costs elsewhere and in apartments, you're also getting a lower loan to value ratio.   Keith Weinhold (00:03:55) - So that means developers, they therefore need to raise even more equity in order to cover that gap. And what's happened is a lot of the equity that's shifted away from brand new ground up apartment development, and instead it's gone over into chasing potential lease up distressed deals, properties that are already out there and are having some problems. So that's where the apartment money is moving right now. Not so much to new developers and builders also aren't building many apartments this year because construction costs remain a problem. Some materials got cheaper, others didn't. One bright spot is that construction labor that is getting easier to find. But yet the actual labor cost that really hasn't dropped. Property insurance is higher too, so these rising expenses, that means apartment projects are not penciling out for builders and then apartment rents. They're just not rising that much. That doesn't help. So it's hard for it to rise, since so many were built last year and the year before. They're in the apartment world. But obviously the long term demand is for just about all residential housing.   Keith Weinhold (00:05:11) - That demand. Is there loads of long term demand for apartments, condos, single family homes, co-ops, modular homes, mobile homes, duplexes, triplexes, fourplex container homes, row houses, farmhouses, penthouses, outhouses. I think you get the idea. The demand is there. Residential is the resilient spot, and it's all about where you want to get in. And speaking of homebuilders and finding a smart place to get in, it's important to share with you the good news that homebuilders are still buying down your interest. Right for you. Now the third year rate, it hit 8% last year. And Non-owner occupied property costs a little more. So it was nearly 9% on income property. It's come down off that as we know it's been around seven lately. But see here at GREwe work with builders that are still buying down your interest rate into the fives and sometimes still into the fours on new construction, single family homes, up to four plex and sometimes larger in Florida, Alabama and elsewhere. I mean, that is just the best deal going for you today to have an income producing new build property in the path of growth at 4 to 1, leverage to 5 to 1 leverage and.   Keith Weinhold (00:06:46) - Your mortgage in the fives or less, and we'll help you find the real deals within that. To connect with a great investment coach at great marketplace.com. I think you'll be glad you did. Now, today, if somehow I could use a time machine to write a letter back to my 2020 self and inform myself about what's going to happen in the housing market for the next 4 or 5 years? And I had to keep this note to myself short. I would have written that everything is going to shoot way up, rents up, prices up, interest rates up, expenses up, inflation up. Well, now that nearly all of those run ups have settled into place, we can draw a clearer picture of where we think the real estate market is going to be positioned in the future. Our guest has just freshened things up and he's got the latest in the property market all updated for us. I do two with my own research. You'll like this. It's our housing intelligence analyst guests and I. Straight ahead.   Keith Weinhold (00:07:55) - I'm Keith Weinhold. You're listening to 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 66866. Role under the specific expert with income property, you need Ridge Lending Group and MLS for 256 injury history from beginners to veterans.   Keith Weinhold (00:09:15) - 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 Caeli 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.   Kristin Tate (00:09:42) - This is author Kristin Tate. Listen to get Rich education with Keith Weinhold. Don't quit your day dream.   Keith Weinhold (00:09:59) - Hey what has not been a very long goodbye. Just like last week when we discussed the economy this week we have the return of the C.J. Patrick Company's Rick Sharga, an extraordinary housing intelligence analyst, as we more specifically cover the real estate market. And if you're on video, you'll have the benefit of seeing some charts as well. Rick. Welcome back. Good to be back, Keith. Long time no see. Yeah, it hasn't been so long. What are your overall thoughts with the housing market? Last week we largely talked about a resilient economy potentially with some headwinds. Yeah we did.   Keith Weinhold (00:10:32) - And I think we're one of the things we left off on was the impact that the Federal Reserve had had on the mortgage market and the housing market. We probably start there. When you look at what's gone on, and just to show you how random all of this can feel sometimes this is a snapshot of mortgage rates from March 12th. And mortgage rates were trading at about 6.92% for a 30 year fixed rate loan.   Rick Sharga (00:10:56) - The most recent number I saw was about 7.1%. And as I mentioned to you and your listeners last time, I expect until the Federal Reserve makes its first fed funds rate cut, we're going to see mortgages trade right around 7% between 6.75 and 7.25%. This has made a big difference in the market because it has limited affordability for literally millions of prospective home buyers. That's makes for a difficult situation for people looking to buy or sell homes, but it also presents millions of rental property opportunities because these people need to live somewhere and they've voted themselves off the island temporarily. They just can't afford to buy a house.   Rick Sharga (00:11:41) - And you see that in terms of the reduction in number of mortgage applications that are being made. So if the Mortgage Bankers Association tracks the number of people that apply for loans, if you went back to December when mortgage rates dipped just a little bit, we saw a run up of loan applications, and as soon as they went back up to seven, we saw that number fall off. It's a very, very rate sensitive market. We'll talk a little bit about some of the implications of that as we move ahead, Keith. But the weak affordability, the higher interest rates, the continuing high home prices led to a very, very weak year in 2023. In terms of overall home sales, we ended the year with about 3.9 million existing homes sold. That's the lowest number of homes sold in a year in a quarter century. Yeah, even lower than we saw in the Great Recession. And December was the 28th consecutive month where we sold fewer properties than we sold the year before.   Keith Weinhold (00:12:39) - So a contraction in the number of sales, although prices appreciated last year.   Rick Sharga (00:12:44) - Yeah, we'll talk about that this year. I'd been hopeful that we'd be a little bit of a better start. January and February were both up in terms of home sales on a month over month basis, but continued this trend of lower sales on a year over year basis. We're looking at 30 consecutive months where we sold fewer properties than we sold the prior year. As a result of this.   Keith Weinhold (00:13:05) - Supply crash, that really began about four years ago.   Rick Sharga (00:13:08) - It's partly supplied as partly costs, that affordability. We really can't overestimate the impact that affordability has had. But you're right in terms of inventory and in fact, a good segue, it's almost like you'd seen this before, Keith. Inventory is up significantly from last year, about 24% higher than it was a year ago, according to some data from Altos Research. But it's still only running about half of 2019 levels. So in a normal market, we would have about a six month supply of homes available for sale in our market today, we're looking at somewhere between two and a half and three months supply.   Rick Sharga (00:13:44) - That lack of supply with some pent up demand is one of the reasons we have seen prices continue to be very healthy, and we haven't seen the the price crash that all the snake oil salesmen on YouTube comments. As of mid-March, about 513,000 homes available for sale, again, about 24% higher. Than last year when the numbers were just dismal. We normally do see more inventory coming to market this time of year. We'll not get anywhere near where we were back in, you know, years like 2019, 2020. But it wouldn't be a surprise to see a little bit more inventory coming to market.   Keith Weinhold (00:14:21) - Now, Rick, for existing properties, we have the very well documented interest rate lock in effect. I think a lot of people understand that. But as far as bringing more supply onto the market, do you see anything from the builder side? You know, costs are up for builders and builders feel this lack of affordability from the buyer market as well. So therefore that motivates them to build somewhat less.   Keith Weinhold (00:14:43) - And they're also building smaller properties, some shrinkflation with new construction property to try to help out with that affordability. So what are your thoughts with builder motivations this year and next year?   Rick Sharga (00:14:54) - All that thought is we're going to get to new homes in just a couple of minutes. So keep that right forefront in mind. But let's just kind of wrap up on existing sales. I do want to point out to your listeners that the inventory growth is actually outpacing the number of new listings. So new listings are only up about 14% year over year, whereas overall inventory is up 24%. The reason for that is it's taking longer to sell homes once they get to market. So once those properties are listed, they're staying in the inventory numbers a little bit longer than they were last year or even a few months ago. So that's one of the reasons the inventory numbers look a little bit better than they did. You talked about the rate lock effect. It's still very real. About two thirds of everybody with a mortgage has a mortgage rate of 4% or less.   Rick Sharga (00:15:43) - And this is not home sellers being picky or having a psychological problem. This is math. If you sell a property today and buy a new one for exactly the same price as the one you just sold, you've now doubled your monthly mortgage payment and most people simply can't afford to do that. So the properties being listed or by by people who feel like they need to sell, there's a death in the family or a birth in the family. There's a divorce or there's a marriage. There's a job loss or job that requires a transfer, maybe some financial difficulties where the borrowers in distress so they feel like they have to sell the home, or somebody's been retired for a long time, has a lot of equity, and just says, oh the heck with it. It's time for me to downsize. But the people who would normally be making a decision that maybe I'd like to sell, maybe I'd like to look at a move up opportunity. Those people are sitting on the sidelines and rather than seeing a price crash, which is what people are breathlessly trying to sell you on YouTube, the most likely scenario, something we've seen play out in the 80s and 90s and is likely to play out again in the 2020s, which is several years of kind of lackluster sales volume and modest price growth.   Rick Sharga (00:16:54) - And it takes a few years to reset the levels so that all those people with the Sub4 mortgages gradually, slowly work their way out of inventory and are replaced by people with mortgages that are closer to today's rates. And we've seen that happen, like I said, in the 80s and 90s, and it's a very normal occurrence when you have a sudden shift in either mortgage rates or home prices, that's much more likely to happen than a 2030 40% drop in home prices to make things affordable. And I would just ask anybody who's skeptical, if somebody approached you tomorrow and you didn't have to sell, but they said, hey, sell me your house for 40% less than market value. How interested would you be in having that conversation?   Keith Weinhold (00:17:36) - Wouldn't last long.   Rick Sharga (00:17:37) - No. And then home prices are up in every region. You mentioned this, Keith. Across the country I'm sharing for people that can see it. I'm sharing data from the Fhfa, which is the entity that controls Fannie Mae and Freddie Mac. So all of those 30 year fixed rate conventional loans and a year over year basis, we saw prices go up 6.3%.   Rick Sharga (00:17:56) - They were up in every region of the country. And that's a little different than the prior year when the Pacific region was actually down. But every region of the country is seeing price growth right now. And whichever price index you look at Case-Shiller,, Freddie Mac, the Fhfa index, National Association of Realtors, everybody showed similar numbers were every region was up. But importantly for your listeners and I emphasize this enough, local results are very different than national results. So even within markets where we're seeing prices go up, there are going to be neighborhoods where prices are going down and vice versa. So it's much more important for you to understand what's going on in your local market than to listen to a lot of these national trends. I will tell you that some of the markets that overheated during the pandemic, as people were moving out of high priced, high tax or highly congested areas, are seeing a bit of a clawback. So places like Boise, Idaho and Saint George's, Utah and Austin and Phoenix and Las Vegas, we're seeing those markets with the prices clawing back a little bit, a lot of price growth continuing the southeast.   Rick Sharga (00:19:04) - So and surprisingly now in the Midwest as well. So we are still seeing a bit of a migration from high price, high tax areas into lower priced markets. I tell folks, Keith, I have two adult kids living at home. My son's getting married in September. He's a teacher. His fiance is a lawyer, and they took me aside recently and said, hey, you follow this stuff. What states should we be looking at outside of California to move so that we can own a house?   Keith Weinhold (00:19:31) - Wow, that is really, really interesting that that would dictate their decision on where they live, if they have that much of a preference to own rather than rent. Recently, a lot of us in the industry learned that the average age of the first time homebuyer is now 36, older than ever.   Rick Sharga (00:19:48) - Yep. And these are two kids with good heads on their shoulders. They know there are benefits to homeownership, and they also know that the median price of a home sold in California last month was almost $800,000, and the First National Bank of dad ain't financing that acquisition.   Rick Sharga (00:20:02) - So I'm sure these conversations are happening in New York, in Chicago, in Miami and in San Francisco, and it's just the reality of today's marketplace. We talked about prices going up. We are seeing slightly more homes having a price reduction before they're sold. That always happens somewhere along the lines of 30 to 35% of homes listed wind up with a price reduction before they're sold. We're up to about 31% now, so we're still in the normal range, but we're a little higher than we've been in recent months.   Keith Weinhold (00:20:35) - This is interesting, a statistic we don't talk about very much, the percent of homes experiencing list price reductions.   Rick Sharga (00:20:42) - And it peaked in 2022. The highest number we've seen in quite a while was over 40%. And that was right after interest rates doubled. And so it's probably not a huge surprise. People were anticipating they were pricing based on the prior market. And I think we're seeing more rational pricing today. But again, that combination of prices just being as high as they are and interest rates being as high as they are, are creating some affordability issues.   Rick Sharga (00:21:05) - And for people that have to sell, they're taking price reductions. Now, keep in mind these price reductions are often very, very minimal. In California, for example, the average price reduction is less than a percent. So it's not a huge reduction, but it's still a reduction from what the list price was. You asked about new homes. So now I'm going to make you happy. We'll talk about new homes. New home inventory levels are increasing. We normally want to see about a six month supply of existing homes for sale. The new home inventory is usually between 7 and 8 months. And we're back to that number right now. Some of those homes available for sale are still under construction, but they are nonetheless available for sale. And we've seen that inventory improve over the last year as supply chain disruptions have minimized as builders are now more able to find laborers for construction. Those are two huge holdups they had over the last couple of years, and we've seen new home sales increase. And one of the reasons for that is they're available.   Rick Sharga (00:22:05) - So if you're a builder and you put a home in the market at the right price, you're going to sell it because there just aren't that many existing homes available for sale. And to your other point, Keith, new home prices are actually down 15% from peak. Existing home prices are up, new home prices are down. And in fact, if you look at the most recent new home pricing data put up by the Census Bureau recently, new home prices are at the lowest level since June of 2021. So they've really come down pretty significantly and are not that far away from existing home prices in many markets. So that median price of an existing home and the median price of a new home for sale are closer than they've been in years, partly because the builders are building smaller homes, partly because you're using less expensive fixtures. And the other thing that the builders have been doing, and this price is a lot of people, but it's brilliant on their part, is they're coming to closing with thousands of dollars and they're paying down mortgage rates.   Rick Sharga (00:23:01) - They're buying points and dropping the mortgage rate for their buyers. I spoke to a group in Denver recently where there was a local builder advertising mortgage rates of 4.99%. So think about that.   Keith Weinhold (00:23:13) - We have providers we work with here that are doing similar things. We're still seeing the rate buy downs happening, and that's why I've often told people, Rick, like, this is potentially a good time in the cycle when you're adding more rental property to really look at new builds or build to rent while these rate buy downs last. Now, I talked to a builder in Houston yesterday, and I learned a few interesting things. You talked about the smaller square footages. They could confirm that often times this builder offers either a bedroom or a study. You can get an extra bedroom or a study like a little office space. And more and more people are opting for the study. So they're starting to build homes more with the study in mind because more people are working from home and one less bedroom because people are having fewer children.   Rick Sharga (00:23:57) - Exactly right. It's the combination of both of those two things, either having fewer children or having them later. And many more people working from home than they were prior to the pandemic. And those studies become very, very useful., rooms to have in the house. Rick, what.   Keith Weinhold (00:24:12) - Is the lowest cost, new build, single family home that you see? I mean, is anyone even building in any parts of the nation, like a 225 K new build home? I haven't seen one.   Rick Sharga (00:24:26) - I haven't seen one. But I wouldn't be surprised if you're in a market in a state like Alabama or Mississippi and some of the more outlying areas, maybe some markets in the Midwest where home prices aren't as astronomical as they are elsewhere. But look, the builders are building judiciously. They're not overbuilding., we had a cycle in 2008 where we had a 13 month supply of homes available for sale and building Irish building. They got caught with overstock. But what they are building, they tend to build as move up homes because they're more profitable.   Rick Sharga (00:24:58) - So you're just not seeing an awful lot of entry level homes being built. And the hope is that as they build that first move up level home, some of the people with entry level homes will opt to sell and bring some of that inventory back to market. We are seeing more construction. We are seeing building permits,, going up on a year over year basis., most recent numbers are around 1.5 million permits. So the builders are bullish on the future. And housing starts were up in both January and February. Most importantly they're up most strongly in single family owner occupied homes. We're seeing housing starts to decline dramatically in terms of multifamily starts, right. But that's because there's about a million new apartment units coming online between last year and this year. And we don't need a whole lot more apartments., we need,, more single family homes. So if your listeners are seeing headlines talking about housing starts being lower, it's really because we're seeing fewer multifamily starts.   Keith Weinhold (00:25:54) - Last year was a big year for multifamily construction.   Rick Sharga (00:25:57) - All time high in terms of multifamily units under construction. And a lot of those are still coming to market this year. There are going to be some markets that are actually still oversupplied. So again, you have to be paying very close attention. When we talk a little bit about the rental market in the apartment category, we have seen apartment rents decline year over year in pretty much all categories. Whether you're looking at studio apartments, one bedroom apartments, two better apartments on a year over year basis, rents are actually in negative territory, according to Realtor.com and according to some data I've recently seen from RealPage. If you're looking at the actual price of rent and I know that's a little different than percentage increases or decreases, you're still seeing that rents about it's below peak. It's about 1.6% below the peak we hit in 2022,, when vacancy rates were just about nothing. But we are still below peak, and the median rent is ranging,, somewhere in the neighborhood of $1,700 a year for apartments, single family homes, which I suspect more of your listeners are actually,, renting out than apartments.   Rick Sharga (00:27:03) - Yes. Are doing better. We're seeing year over year rents continue to grow. They're growing modestly. They have not gone into negative territory, and they haven't,, during this boom and bust cycle that we've seen in the housing market. And if you're looking at,, price gains, according to some recent data from CoreLogic, if you're at the higher end of the single family rental market, prices are up about 3% year over year. At the low end, they're up about 2.9%. So very little difference depending on your price tier and also very little difference depending on whether you're looking at an attached single family residence or,, detached family single family residence. All those are up right around 3% year over year. And that's a good sign. Again, you're dealing with a as your your listeners know, you're dealing with a slightly different tenant in a single family home than you are in a, an apartment. And a lot of these people who would have been buyers or opting to rent stands to reason that,, they'd rather rent a house, particularly if it's in a good school district or in a good neighborhood than an apartment, because they have needs.   Keith Weinhold (00:28:06) - Rents are extremely stable historically. They just sort of plod up slowly. What happened about two years ago, three years ago, with that 15% plus rent increase, that's an aberration.   Rick Sharga (00:28:19) - Yeah, that's a good point, Keith. If we're looking at 3% rental growth year over year right now in the single family rental market that tracks with historic normals, usually you're somewhere between 1 and 5% a year. So threes, you know, smack dab in the middle of all that. And the growth rates also vary wildly by markets., just kind of give you a range if you're looking at a single family rental property in Honolulu, in the city, year over year, you're up about 6%. If you're looking at a unit in Miami, Florida, you're down about 2.5%.   Keith Weinhold (00:28:50) - So rental growth rates.   Rick Sharga (00:28:52) - Rental growth rates. So really just depends on where you are. That's pretty much your range from a couple points down to I think Honolulu actually had the largest,, increase in the CoreLogic study. A lot of your listeners are probably interested in buying foreclosure properties.   Rick Sharga (00:29:07) - We're not seeing a lot of foreclosure activity. Still, we are starting to see a little weakness in consumers. When we met last week, we talked a little bit about the strength of consumer spending, but we also talked about increasing amounts of spending on credit cards. And we're seeing consumer delinquency rates increase in pretty much every aspect of consumer lending, whether it's a loan, whether it's a credit card debt, whether it's an auto loan, whether it's a home equity line of credit, whether it's a mortgage, a mortgage, delinquencies are up a little bit. The only category we're not seeing an increase in delinquencies right now is student loans. And my theory on that is that people have only recently had to start making payments again on student loans, and we don't have any data to show that they're going delinquent yet. But the delinquency numbers we need to take with a grain of salt, because many of them are most of them are early stage delinquency. So somebody missed a payment, but then they catch up before they get 60 or 90 days delinquent.   Rick Sharga (00:30:02) - But we are seeing trends that suggest more delinquencies. And if you have more delinquencies, that leads to more foreclosures. Mortgage delinquency rates, according to the Mortgage Bankers Association, went up to about 3.8% in the fourth quarter, the historic average going back to the 1970s, which is as far back as the NBA goes, is about 5.25%. So we're still way below normal levels of delinquencies. As I mentioned, most of those are early stage delinquencies, and they're being resolved before they get more serious. Because of that, we don't have a lot of foreclosure activity. So this is no longer Keith government intervention. It's no longer government forbearance programs and foreclosure moratoriums. It's the fact that the economy's been so strong. Unemployment rates have a very strong correlation to mortgage delinquency rates. We got together last time I mentioned the unemployment rate was at 3.9%. I just told you that word delinquencies are at 3.8. Can't get much closer than that. And because of that, foreclosure activity is still down almost 30% from where we were in 2019 prior to the pandemic.   Rick Sharga (00:31:07) - And I should point out, the 2019 wasn't a particularly big year for foreclosures either. So I don't see us getting back to pre-pandemic levels of foreclosure activity until sometime next year. And what's important for people in this space to understand is that even though we're seeing roughly the same number of delinquencies that we saw back in 2019, fewer of those delinquent loans are going into foreclosure. Fewer of those foreclosures are getting as far as the auction, and even fewer of those are going back to the banks as REO properties or bank owned properties.   Keith Weinhold (00:31:40) - Delinquency occurs before foreclosure. We have low levels of both, and I would imagine that one substantial reason for that are these low fixed rate payments that so many people have. Minutes ago, you showed us that 90% of those with a mortgage have a rate in the fives or less. And then oftentimes when we talk about these sorts of things, we don't even consider the fact that more than 4 in 10 homeowners are free and clear. They don't have any mortgage at all. So it's difficult for people to get in trouble.   Rick Sharga (00:32:10) - Yeah. And when they do get in trouble, what's really a saving grace for a lot of these people? And I believe the reason we're seeing fewer foreclosure auctions and bank repossessions is that there's $31 trillion in homeowner equity in the market, and 90% of borrowers in foreclosure have positive equity. A huge percentage of those have at least 20% equity. So what's happening interesting is that many, many of these borrowers are protecting their equity by selling their home before the foreclosure sale. If they get to foreclosure sale, they run the risk of losing all their equity, or at least the overwhelming majority of their equity.   Keith Weinhold (00:32:48) - That's a great point with how this really works.   Rick Sharga (00:32:50) - And so if you're looking to buy a distressed property, if you're looking to buy a foreclosure property, you really need to be working directly with the homeowner in the earliest stages of foreclosure rather than waiting for the auction. And certainly rather than waiting for the bank to repossess the home and resell it. And some recent data from a friend of mine@auction.com tracking some numbers from Adam Data.   Rick Sharga (00:33:15) - 55% of the distressed properties that were sold through from June through to September of last year were sold in that pre foreclosure period prior to the foreclosure auction. That's wildly different than we've been in in years past. So really important for anybody looking to buy distressed property, to consider moving upstream and working directly with that homeowner. And it's a win win. You can help that homeowner protect their equity, have some cash to make a fresh start with and, and typically buy a home in pretty good condition and a home that you need to be part of your rental portfolio. So just kind of recapping some of the stuff we talked about, Keith, both today and last week, I still think that from an economic standpoint, there's still at least a good possibility we might have a short, mild recession sometime later this year. I don't see unemployment going much higher than 5%. Even if we do have a recession, if we don't have a recession, we'll only see the economy slowed down a bit. It might be hard to tell the difference.   Rick Sharga (00:34:10) - I'm expecting the volume of home sales to go up. I think we bottomed out in 2023, but not by a lot. Maybe we see a 10% lift over last year, which would take us to roughly 4.4 million existing homes. I wouldn't be surprised to see 700,000 new homes sold, really just depends on how quickly builders bring inventory to market. But if I'm right and mortgage rates go down slowly over the second half of this year, we'll see more home buyers come to market more quickly than sellers. We don't see a lot of sellers come to market until we get interest rates down to about 5.5% or lower, which probably won't happen until 2025. So more buyers coming to market than sellers means the prices will continue to go up. We continue to see investors account for 25 to 30% of all residential purchases. So I think we'll continue to see a higher rate, partly because investors are active, partly because a lot of consumers are waiting for market conditions to improve, but that limited affordability in today's market conditions, I really do think means more demand for rental units.   Rick Sharga (00:35:14) - And I think foreclosure activity stays below normal levels for the rest of this year, and REO inventory bank repossessions are going to remain even lower for even longer. I don't think we see REO activity come back to more normal levels for at least a couple of years, so anybody looking to buy these properties really does need to be moving upstream in order to make those purchases.   Keith Weinhold (00:35:34) - Yeah, with low affordability, hence more demand for rentals. I've already noticed that the homeownership rate, which is somewhat of a trailing number here, has already fallen from 66% to 65.7%. And with low affordability, it seems that that homeownership rate could fall even more, meaning the rate of renters would be higher.   Rick Sharga (00:35:54) - A friend of mine always complains that the government's somehow beside behind all of these trends, one way or the other, and and wonders why, with all the government programs aimed at increasing homeownership, we haven't seen that homeownership rate increase much. And I think sometimes things said to the natural level and our homeownership rate, really for the last 30 years, has been somewhere between 64% and 66%.   Rick Sharga (00:36:19) - And that might just be what the natural level for homeownership is in the United States. Will it dip a little bit as people can't afford to buy a house? Probably. Probably will. When market conditions improve for buyers, will it go up a little bit? Probably. But we hit 70% homeownership back in 2006. And it turned out that was the bad number and that not everybody's ready financially for the kind of commitment that homeownership requires. And so I've always said that the key isn't getting everybody into a home. It's the sustainability of homeownership for people that that we do get into that house. One of the best days of your life is when you get the key to that house, and it has to be one of the worst days if you have to give it back. So I hope we all keep that in mind as we move forward.   Keith Weinhold (00:37:03) - That's right. Government incentives is in the past saying there's a $10,000 first time homebuyer tax credit. Oh, we're not in an era where we need help. On the demand side, all you're doing is driving up prices.   Keith Weinhold (00:37:14) - And I don't know that you're helping out anybody in that case. But I think with really overall, one big takeaway here, Rick, is that if you the listener, if you're waiting for prices to drop substantially sometime or for interest rates to drop substantially sometime, that might not be worth the wait. You could be waiting a long time.   Rick Sharga (00:37:32) - I do expect mortgage rates will decline. I don't really go back to the sub for rates we saw a few years ago, but they're going to decline slowly and they may not decline enough to offset rising home prices. I mean, you have to get your calculator out and and figure out how that math works for you. But you're absolutely right, Keith. And I tell people today, even with mortgage rates being where they are, if you find a house you love or you find a house that's a good investment and you pencil it out and the numbers work, don't wait because the opportunity costs can be severe and you could wind up missing out on a property that could either be a good cash flow unit for you on rental, or it could be a property that you wind up living in for the next 30 years.   Rick Sharga (00:38:13) - So don't be afraid of today's market. Just be very prudent and judicious in the way you approach it.   Keith Weinhold (00:38:19) - Well, Rick, get resuscitation of followers and the nation have been a beneficiary of your housing market intelligence expertise for quite a while now. If someone wants to engage with you in the CJ Patrick Company, who are those types of people and how could you help?   Rick Sharga (00:38:36) - I appreciate the opportunity. Most of the companies I work with or companies that provide services to lenders, anybody who has a business that's in the real estate or financial services markets, who would benefit from my coming in to share with them industry data, or has data themselves that they would like to get out into the marketplace? Anything data related really, I tend to specialize in. So market updates and market overviews and market. Analysis or things that I do on a pretty much daily basis for companies.   Keith Weinhold (00:39:07) - How can they engage with you?   Rick Sharga (00:39:08) - They can find our website, which is C.J. patrick.com. They can find me on Twitter. I hide there under my name, Rick, or reach out to me on LinkedIn.   Rick Sharga (00:39:17) - And if you reach out to me on on a social media channel, make sure that you mention you know me through Keith, and you're not some crazy Russian bot trying to hack into my personal information.   Keith Weinhold (00:39:27) - Well, then, Rick, it's been great having you back on the show.   Rick Sharga (00:39:30) - I'm sure we'll do it again sometime soon. Thanks for having me.   Keith Weinhold (00:39:39) - Yeah, terrific Intel there. In this episode, Rick said that to still expect a lower amount of sales going forward and expect modest property price appreciation. Every region of the nation is seeing price growth now. And by the way, you remember that late last year, I unveiled Gray's home price appreciation forecast for this year, stating that prices should rise 4% and here in Q2, I still like how that looks. There is not much distress with current homeowners, but if you're looking to scoop up a foreclosed property cheap, you better get aggressive and work directly with the homeowner in the earliest stages of foreclosure. Don't wait for that property to go to auction. Rick also said more demand for rental units is coming, and I encourage you to engage with Rick.   Keith Weinhold (00:40:30) - Let him know you heard about him through me. If you want to go deeper and engage with some of the services that he offers, perhaps you work for a real estate company or a demographic company. You can do that at C.J. patrick.com. But most of you, the listener is an individual investor. So check him out on X where his handle is Rick Sharga. He is Rick Sharga on LinkedIn. Big thanks to Rick Sharga today. Until next week I'm your host, Keith Wild. Don't quit your daydream.   Speaker 5 (00:41:04) - 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.   Keith Weinhold (00:41:32) - The preceding program was brought to you by your home for wealth building. Get rich education.com.

It took Chris Pomerleau four years to realize he didn't have to replace toilets himself and another four years to realize he didn't have to do his own books.That's when Chris went from simply doing deals to building a real estate business.So, why does it take most investors so long to scale? And what can YOU do to achieve financial freedom much faster?Chris is Cofounder of LeavenWealth Capital, a real estate investment firm out of Omaha, Nebraska, with 2,700 multifamily units totaling $211M in assets under management.Chris also serves as Cofounder and VP of Investment Strategy at Rayven, a Reg A investment business committed to fighting climate change by way of net-zero apartment buildings.On this episode of Financial Freedom with Real Estate Investing, Chris joins me to discuss how he got his start using the BRRRR method with SFHs—until he realized it wasn't scalable.Chris explains how he grew his real estate business, describing how he made the shift from borrowing money to raising equity and why having conversations with investors outside his circle was scary at first.Listen in to understand Chris' 50/50 approach to real estate partnerships and learn how to think about hiring not as an expense, but as an investment in your multifamily business!For full episode show notes visit: https://themichaelblank.com/podcasts/session388/

More homeless people have been created due to the housing supply crisis. Homelessness is up 11% since last year, per the WSJ. The opioid crisis, consumer inflation, and NIMBYism have contributed too. California has the most homelessness on both a total and per capita basis. States with higher housing costs have more homeless people. I share our poll results: “Should we pay to house the homeless?” Are you a NIMBY? We find out today. We can increase housing supply with rezoning, construction training, and lower mortgage rates. The cycle of investor emotions led to wild investing manias. It was tulip bulbs in the 1600s Netherlands and Beanie Babies in the 1990s United States.  I discuss exactly why “buy low, sell high” is more difficult than it sounds. Timestamps: The correlation between homelessness and the housing market [00:00:00] Discusses the relationship between the housing market and the increasing problem of homelessness in America. Investing manias and lessons from history [00:00:00] Explores the phenomenon of investing manias and the lessons that can be learned from historical examples. The tight inventory market conditions and potential solutions [00:04:56] Lawrence Yun, Chief Economist of the National Association of Realtors, discusses the tight housing market conditions and suggests tax incentives to increase housing supply. Timestamp 1 [00:10:32] Affordability of moving to different cities and the proposal of a tax incentive for real estate investors. Timestamp 2 [00:11:49] Discussion on the housing supply crisis, mortgage rates, and the homeless population in the US. Timestamp 3 [00:14:14] Increase in homelessness in America, reasons behind it, and the correlation between housing prices and homelessness rates. The impact of high density housing on quality of life and home value [00:21:12] Discussion on the potential negative effects of building high density housing near single family homes, including reduced home value, increased traffic and noise, and loss of nearby open space. Alternative solutions to increase housing supply and reduce homelessness [00:23:30] Exploration of alternative measures to address homelessness, such as trade training for the homeless and relaxing excessive safety requirements in home building. Giving real change to the homeless [00:25:50] Encouragement to give directly to homeless shelters or soup kitchens instead of giving small change to individuals on the street, with the concept of "give real change not small change" explained. Note: The timestamps provided are approximate and may vary slightly depending on the podcast episode. The Origins of Tulip Mania [00:31:37] Tulips were introduced to Europe in the 1500s and became a luxury item for the affluent. The cultivation of tulips locally in the Netherlands led to a flourishing business sector. The Tulip Bubble [00:32:55] By 1634, tulip mania had swept through the Netherlands, with the demand for tulip bulbs exceeding supply. Prices reached exorbitant levels, and futures contracts were being bought and sold. Lessons from Tulip Mania [00:37:53] Tulip mania serves as a model for financial bubbles, with similar cycles observed in other speculative assets like beanie babies, baseball cards, NFTs, and stocks. It highlights the dangers of excess, greed, and speculation without tangible value. The cycle of investor emotions [00:44:32] Explanation of the different stages of investor emotions, from optimism to panic, in relation to stock market investing. The peak of the stock market [00:46:43] Discussion on the peak of the stock market being the point of maximum financial risk and the difficulty of selling at the right time. Real estate as a stable investment [00:51:56] Comparison of real estate investment to speculative bubbles, highlighting the stability and income stream provided by real estate. Explains how the integration of HOA (Homeowners Association) helps maintain uniformity and cleanliness in the rental property investing world. Details about the upcoming real estate event [00:38:31] Promotion of a live event where listeners can learn about new construction fourplexes and have their questions answered in real time. Resources mentioned: Show Notes: www.GetRichEducation.com/463 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:   Welcome to Get Rich Education. I'm your host, Keith Weinhold. America's homeless problem has become FRIGHTENING. I describe how that correlates… with the housing market.  Then, investing MANIAS. What drives people to spend more for one tulip flower bulb than they would for an entire luxury home?    And lessons you can learn that'll benefit you the rest of your life from other manias throughout history. All today, on Get Rich Education.   ___________   Welcome to GRE! From Seaford, DE to Carmel-by-the-Sea, CA and across 188 nations worldwide, you're listening to one of America's longest-running and most listened to shows on real estate investing. Along with plenty of ongoing hot takes on wealth mindset and the real estate economy.    I'm your host, Keith Weinhold.    See, the crash in the SUPPLY of available American homes is bad and it isn't just creating more upward prices, it's a contributor to homelessness.    Let's talk about some of the drivers of homelessness, understand the problem a little more, how many homeless people ARE there in America, and then… what can we do about it?   As you'll soon see, one prominent real estate industry influencer actually suggests that you actually SELL your rental single family homes in order to help serve the homeless. More on that shortly.    Also, I have the results from a GRE Instagram Poll. The poll question is: “Should we pay to HOUSE the homeless?”    And the answers that you - the GRE listeners gave… actually surprised me. I'll give you those super-interesting poll results later, because I have more to explain there.   But first, what IS a homeless person? Let's define it. I think most anyone knows that since it's a person without a home, it's thought of as living on the street.   Really, then, that person might not be homeless but “houseless” in a literal sense. Even if they live in a tent under a bridge, that is then, their home. Though it might be INADEQUATE housing.   More accurately, the unsheltered or undersheltered population could be more apropos.     Then there's vagrancy. A vagrant is defined as a person without a settled home OR regular work… who wanders from place to place and lives by begging.   So vagrants are PART of the homeless population then. This all helps DEFINE what we're discussing.   Now, the lack of available American housing supply - especially the affordable segment - is OBVIOUSLY a big contributor to homelessness.   For example, anymore, how many builders even construct a new-build entry-level home for $200 or 250K? Practically nobody… anywhere.   And just how bad is the supply problem now? Well, the NAR has been tracking housing supply since 1982 and it just hit its lowest level ever this summer - EVER - and that's in 40+ years of tracking.    That's one reason why just last week, it was announced that Warren Buffett is making a big bet on housing by investing in homebuilders.   Now to keep consistent with the same stats I've been reporting to you for you, to update that, again 1-and-a-half million available homes is the baseline supply. That's the long-term “normal” per the FRED Active listing count.   And through last month, it's still under 650,000. That is STILL a housing SUPPLY crash of 57% from its peak of 1 ½ million.   I want you & I to listen to this upcoming piece together. This recent interview with NAR Chief Economist Lawrence Yun is from the 8th of this month.   Yes, HE is the one that basically wants you to sell your SF rental properties. And he makes his case for an inducement to get you to do this. (Ha!)   He's not proposing anything COMPLETELY ludicrous. It's REALLY interesting. Listen closely for that.   This about 5 minutes in length and there's a lot of material here within this clip - a nutrient dense piece, so I've got SO much to say about this when I come back to comment.    [Yun clip]    Yeah, the NAR Chief Economist there talking about how, much like I have for years, great opportunity is in the Midwest and Southeastern parts of the US.    With this greater ability for people to work from anywhere, when people move in from the pricy coasts, it's sooo affordable to them.   Moving from Manhattan to Cincinnati feels incredibly affordable.  Moving from San Francisco to St. Louis feels like you've upgraded from serfdom to a kingdom. Moving from Boston to Jacksonville feels like a total life makeover.   That's why, here at GRE, we're focused on properties in those INbound destinations.    Before I continue, especially for those outside the US, I know that it seems a little odd that Ohio and Indiana are in what we call the Midwest when they're actually in the northeastern quadrant of the nation.   But the fact that they ARE midwestern states is rooted in history and in cultural tradition.   So, getting back some new angles on the housing supply crisis.   Lawrence Yun proposed that a tax incentive be introduced to unleash the inventory of SF rentals from individual REIs.    And says that there are over 20 million single-family housing units that are rented out.    If we reduced or canceled the capital gains tax & just got 1% of that inventory on the market, he states that that would help.   Well, yeah, but even that then would only put about 200,000 units of the market - and they'd get snatched up so fast.   Now, if mortgage rates come down to say, 5%, it would unleash both housing demand AND supply.    Both - like Lawrence Yun says. So it's not apparent that that would help this shortage, if both demand and supply go up.   In a nation of about one-third of a BILLION people now - that's how I like to express it this year - America now has one-third of a billion people… also known as 333 million - how many do you think are classified as homeless?   As you think about that - as you think about how many of America's 333 million Americans are homeless, this homeless population figure that I'm about to share with you is from HUD and it's through last year, so it's their latest year-end figure.    And I'll tell ya, it's hard to believe this number. The Department of Housing and Urban Development states that about 582,000 Americans are experiencing homelessness.   Now, how HUD does this is that their number is a snapshot of the homeless population as of a single night at the end of January each year.    The total number of people who experience homelessness for SOME PERIOD each year will be higher than that.   I just did the math and then that means that just 1 in every 572 Americans are homeless. C'mon. Do you believe that? Only one in every 572 Americans are homeless?   I might believe that it's something like more than 1 in 200. What are your thoughts?   Even HUD would probably concede that there are shortcomings in that stat and that it's only a starting point.   And over the last decade, according to HUD, the homeless population is little changed… apparently until just this past year.   Homelessness is surging in America. The number of people experiencing homelessness in the US has increased 11% so far this year over 2022. That would be the biggest jump by far in equivalent government records beginning in 2007.   Now this 11% homeless jump is according to a WSJ analysis of hundreds of smaller & local agencies.    Most  agencies say the alarming rise is because of the lack of affordable housing and rental units, and the ongoing opioid crisis.   Inflation is part of that affordable housing problem. Inflation widens the disparity between the haves and have-nots.   To cut some slack to census-type of surveying, homelessness can be hard to measure. Some live on skid row, some live in the woods, some homeless people live in their cars.    Some aren't interested in being counted. Others are essentially invisible. I mean, if someone's between jobs and needs to couch surf at their aunt and uncle's place for three months, are they homeless or not? So, to be sure, there's a lot of leeway in those numbers.   One in 572 as homeless - that should just be a minimum - a starting point in my opinion.   Now, homelessness broken down by STATE is really interesting.   California at 171,000, has the most of any state, more than double of next-most New York, and then Florida is third.   But let's break that down by rate - on a per capita basis. So… think of this as the highest CONCENTRATION of homeless:   Washington DC has 65 homeless per 10,000 people. That's not really a state though, so…   #1 on a per capita basis is STILL California, with 44 per 10,000. So California leads in the nation in homeless on both bases then - both absolute and relative.   The second highest rate is Vermont.  Third Oregon Fourth Hawaii Fifth is New York And then numbers 6 through 10 on the most homeless per capita are Washington, Maine, Alaska, Nevada, and Delaware.   Now, strictly anecdotally. You've probably seen just what I've seen in the last year-plus - more visible homeless people in your city and other cities.   The state with the FEWEST homeless of all 50 states is Mississippi - and see, housing is quite affordable there. MS is one of the most affordable states for housing.    There is at least SOME correlation between your cost of housing and homelessness.   Recently on our Instagram page, and the handle there is easy to remember - it's @getricheducation - if you want to participate in future polls, we ran a poll on homelessness.   Here is the poll question that we ran - and I'd like you to think about your answer to this too.   “Should we pay to house the homeless?”    That's the question.    And in polling, the way that the question is phrased, of course, can skew your answer.    See, if instead, we phrased it as, “Should the government house the homeless?” you might have more ‘yes' answers - even though it's the same question - because you FUND the government.    But the question as we phrased it: “Should we pay to house the homeless?” - it also showed a photo of vagrants on a street curb under the question.   Here we the results, which surprised me, to:  Should we pay to house the homeless?   Those answering “Yes” were just 6% The no's were 45% But we also had a third option: “It's complicated”. 48% answered with that option.   So again, just 6% of you said we should pay to house the homeless and 45% said “no”. “48% said it's complicated”.   In a way, that makes sense to me since we have a largely entrepreneurial, self-made type of audience. I thought that might have happened.   But what surprised me is in how emphatic it was. It was a landslide. 7 to 8 TIMES as many of you said we should not pay for the homeless as those that said we should.   Well, the reason that I added - and I'm the one that ran the poll myself - they're quick to do. I added the paying to house the homeless “It's complicated” option because it IS complicated… that WAS the most popular answer.   I mean, why should you go to work and pay to house a stranger that has no income because he or she doesn't want to work?   But what if they're disabled and they can kinda work but not really work… or a zillion other complications.    Substance abuse is obviously a big problem that keeps homeless people homeless… and there's a substantial thought paradigm that says, if they're an abuser, then why would I pay for THEIR housing?   Substance abuse is just one reason that there is a population that's VOLUNTARILY homeless. They don't want to have to comply with a group home's ban on substances.    I wanted to address the homeless problem somewhat today, because here we are on Episode 463 of a real estate show and this is the most that we've even discussed it.   I think the perspective it gives you is that it helps you be grateful for what you've got.    But it's abundance mentality here. You can be grateful for what you have and at the same time, grow your means.   What else would help with more housing supply which would also move us toward mitigating the homeless problem?   Well, we've already discussed a number of them so I'll only go in depth with some fresh angles here.   Obviously, more homebuilding. We've done episodes on how 3D printed homes and shipping container homes are not quick, easy answers. Tiny homes might be but then you could get into a zoning density problem again.   Just last week, my assistant brought me this Marketwatch article that reported that the average American home size is shrinking just a little & that often times, new-build houses tend to be a little closer together.   That's what gets us into relaxing zoning requirements. But you know something, OK, this is going to be interesting.    This plays into NIMBYism. Not In My Backyard: communities saying that they don't want high-density housing built next to them.    Now, I think that there are a lot of critics of NIMBYism. But the criticism comes from people that live far out of that area and aren't affected.   Let me just play a fun little experiment with you here. Let me paint a picture of a fictitious life for you and just… place yourself there.   Say that you live in a nice single-family home, with a quarter acre lot. It's not a sprawling estate but you've got a good measure of privacy that way.   You're in a SFH, quarter-acre lot and two car garage. That is classic suburbia.   And… just a hundred yards away from your home there's a big, wide-open field where you walk your dog and use as a little makeshift golf driving range or whatever. Nice open space nearby.   Say you've got a fairly idyllic life here. It's always been this way since you bought the home years ago.   Suddenly, in your neighborhood of all SFHs, you learn that they want to build a bunch of fourplexes in the nearby lot where you used to throw tennis balls to your dog.   What can that do to your quality of life & your home's value, now that a bunch of new fourplexes and eightplexes were built nearby?   It reduces your home's value because there are less valuable, high density properties nearby.   It also increases the amount of traffic & even noise in your neighborhood. Now you can't use that nearby park anymore - it's been all-built up with these higher-density apartments.   So, let me go back and ask - point blank - did you really want all those new high-density developments near your home?   If that made you uncomfortable, that's NIMBYism. So it's quite natural to evoke that feeling type. You're just a human being.   How else can we increase housing supply to help reduce homelessness?   NOT with rent control. Over time, capping the amount of rent that a LL can charge gives property owners no incentive to improve their property and neighborhoods end up dilapidated.   We need more training for tradesman and laborers. How about training the homeless for that? But then someone's got to pay for that training.   Another measure that's become ridiculous is that we've gotta relax these excessive safety requirements in homebuilding. Now, some safety is good.   But when every single home - entry-level and all needs to have fire-rated shingles and fired-rated doors and GFCI outlets and smoke detectors in every room and carbon monoxide detectors all over the place, sheesh! Well, that raises the cost of housing for everyone.   In some earthquake-prone areas, you've got to have seismic restraining straps on your water heater or you can't even sell your home. Do you know how big of an earthquake it would take to damage your water heater like that?   And an excessive safety PROPONENT might say, yeah, but did you hear about that one family that died ten years ago that would have lived if they had carbon monoxide detectors?   Well, the counterargument to that is, yeah, but what about all the homeless people that were exposed to the elements and died in the cold because they couldn't AFFORD the more basic housing, the prices of which have escalated for all this excessive safety stuff.   Are you saying a middle class person's life is worth more than a poor, homeless person's life? That's the counterargument.    Again, some safety is good. But we've gone overboard in too many places - in housing & beyond.   Rising housing costs keep people homeless. A few weeks ago, I did that episode about escalating insurance costs.   I now own some properties that have extremely low mortgage rates and the insurance has gone up to the point where I pay more in monthly escrow expenses than I do principal & interest.    But, hey. I'm not homeless, and if you're listening to this, neither are you.   So when it comes to helping the homeless in the short-term, that campaign called, “Give real change, not small change.” - that really resonates with me.   Don't give 5 bucks to a vagrant on the corner. That just keeps them showing up at that corner, plus they're going to spend your 5 bucks on a cheap bottle of Monarch vodka.   Instead, if you're going to give, give to a homeless shelter or soup kitchen.    That's what's meant by “Give real change, not small change.” And that's something actionable.   Coming up next, investing MANIAS. How wild it gets - paying more for a tulip flower than a SFH, shooting and killing someone over a Beanie Baby toy… and then I'm going to wrap it all up with what all this has to do with the cycle of your investor emotions.   Around here, we don't run ads for the Swiffer. This week's sponsors that support the show are people that I've personally done real estate business with myself and have benefited from.    Ridge Lending Group specializes in INVESTMENT property loans in nearly all 50 states. Start your prequalification at: RidgeLendingGroup.com    Then, for super-passive real estate returns, check out Freedom Family Investments. Right now, what you can do, is just text “FAMILY” to 66866.   I'm Keith Weinhold. You're listening to Get Rich Education. ___________ Welcome back to the GRE Podcast. I'm your host and my name is Keith Weinhold.    If you've got a friend or family member that you think would benefit from the knowledge drops here on the show, you can simply tell them to grab the free Get Rich Education mobile app.   That's a convenient option for listening every week for both iOS and Android.   Today's topics of homelessness and investing manias could very well bring a new audience here, so…    A little more about my backstory. I'm from PA but got my real estate comeuppance in Anchorage, Alaska of all places & grew out nationally & internationally from there. I had humble beginnings and wasn't born anywhere near wealthy. I had to figure out how to build it myself.   But see, if I were born wealthy, I wouldn't have learned how to build it, and then I wouldn't be of much help to you. Likewise, if you're building it yourself, you'll be able to help others too.   BTW, I was born in the same PA town as Taylor Swift.    Though she & I don't have much ELSE in common, I guess that she & I are both best-known for using a microphone.   Though I think that I'm about as likely to start using this microphone to sing into your ears like Taylor Swift does… as Taylor is to launch a real estate investing show.   For hundreds of years, the tulip has been one of the most-loved flowers in the Netherlands. It's an enduring icon - as synonymous with the country as clogs, windmills, bicycles, and cheese. The tulip has a long and storied history - including the infamous shortage in the 1600s known as “tulip mania”. If you're someone that has even a fleeting interest in investing, you should at least know what this is.   Tulips first appeared in Europe in the 1500s, arriving from the spice trading routes… and that lent this sense of exoticism to these imported flowers that looked like no other flower native to the continent. It's no surprise, then, that tulips became a luxury item destined for the gardens of the affluent.  According to The Library of Economics and Liberty, “it was deemed a proof of bad taste in any man of fortune to be without a collection of [tulips].” Hmmm. Well, following the affluent, the merchant MIDDLE classes of Dutch society sought to emulate their wealthier neighbors and also demanded tulips. So to start out with, it was purchased as a status symbol for the sole reason that it was expensive. But at the same time, tulips were known to be notoriously fragile, and would die without careful cultivation. In the early 1600s, professional cultivators of tulips began to refine techniques to grow and produce the flowers locally in the Netherlands. They established a flourishing business sector that persists to this day. By 1634, tulipmania swept through the Netherlands. The Library of Economics and Liberty writes, “The rage among the Dutch to possess tulip bulbs was so great that the ORDINARY INDUSTRY of the country was neglected, and the population, even to its lowest dregs, embarked in the tulip trade. Now, everyone's in - rich to poor. It's a little hard to say for sure how much people paid for tulips.  But Scottish journalist Charles Mackay, wrote an extremely popular 1841 book - you've probably heard of this book - it's called the Memoirs of Extraordinary Popular Delusions and the Madness of Crowds… It does give us some points of reference such that the best of tulips cost upwards of $1 million in today's money (but a lot of bulbs traded in the $50,000–$150,000 range).  By 1636, the demand for the tulip trade was so large that regular markets for their sale - like a little Dow Jones Industrial Average - got established on the Stock Exchange of Amsterdam, in Rotterdam, Haarlem, and other towns. It was at that time that PROFESSIONAL TRADERS got in on the action - that's all that some people do now - is trade tulips… and everybody appeared to be making money simply by possessing some of these rare bulbs.  Dutch speculators at the time spent incredible amounts of money on bulbs that only produced flowers for a Week—many companies were formed with the SOLE PURPOSE of trading tulips.  To everyone, at the time, it seemed that the price could only go up forever. Pretty soon, demand for tulips EXCEEDED THE AVAILABLE SUPPLY of tulips by so much that people were into buying futures contracts, basically saying, I'll pay you this much money TODAY for a tulip that you provide to me in 3 years. By the last 1630s, these futures contracts were like a crack that appeared in the price runup. Demand began to wane when people were just buying a token for a future tulip that hadn't even started growing yet.  People felt like they weren't buying anything tangible anymore. That's one factor that helped create an oversupply of tulips in the market and started depressing the prices. Supply caught up with - and exceeded - demand. A large part of this rapid decline was driven by the fact that people had purchased bulbs on credit, hoping to repay their loans when they sold their bulbs for a profit. But once prices started to drop, holders were forced to sell their bulbs at any price and to declare bankruptcy in the process. So people had begun buying tulips with leverage, using margined derivatives contracts to buy more than they could afford. But as quickly as the run-up began, confidence was dashed. By the end of 1637 is when prices began to fall and never recovered.   And the bubble burst. Buyers announced that they could not pay the high price previously agreed upon for bulbs, and that made the market fall apart.  While it wasn't actually a devastating occurrence for the entire nation's economy, it did undermine social expectations. The event destroyed relationships built on trust and people's willingness and ability to pay. It's been said that “the wealthiest merchants to the poorest chimney sweeps jumped into the tulip fray, buying bulbs at high prices and selling them for even more.” Well, this is what can happen - today it happens with financialization and nothing real backing up purchases. Tulipmania is a model for the general cycle of a financial bubble. That's what happened with Dutch tulips. Now, here in more recent times, similar cycles have been observed in the price of Beanie Babies, baseball cards - I got caught up in the baseball cards as a kid, owning more than 100,000 baseball cards at one time, also non-fungible tokens (NFTs), and shipping stocks.       The example of tulipmania is now used as a parable for other speculative assets, such as cryptocurrencies today or dotcom stocks from around the year 2000. So, when you hear someone likening an investment to a Dutch tulip bulb, now you'll know what they're talking about. It's a symbol of excess, greed, and FOMO. But there has been a good bit of more modern scholarship that tells you that tulip mania did indeed occur in the 1600s Netherlands. But that the tale has been exaggerated and it's something that the upper classes of society were mostly involved in. Now, that's the Dutch tulip bubble. But for a more modern-day parable about an investing mania, there's a new movie about the rise & fall of BEANIE BABIES that's on Apple TV+. These were little stuffed, plush toy animals that became more popular among adults than children. The rise and fall of Beanie Babies—toys that people mistakenly thought would make them rich. The movie is called “The Beanie Bubble”.  It's a MOSTLY TRUE account of the lovable toys' boom and bust in the '90s -  comparable to the meme stock frenzies that took place during the Covid-19 pandemic. These $5 pellet-stuffed plush toys had astronomical appreciation estimates: Stripes the Tiger, released in 1996, was predicted by collectors to surge from $5 to $1,000 by 2008.  Forecasts like these were so enticing that one dad invested his kids' college funds in Beanie Babies, thinking he'd resell them later for a hefty profit. At the height of the frenzy, people were ruining relationships and committing felonies to get their hands on some of these sacks of fuzz. Border officials confiscated more than 8,000 smuggled Beanie Babies at a US–Canada border crossing in 1998. A West Virginia man shot and killed a former coworker in 1999 after an argument partly about $150 worth of Beanie Babies. That same year, a divorcing couple couldn't agree on how to split up their collection, so the judge made them divvy up the toys in person, right on the courtroom floor. How did that all happen? Barely anyone cared about Beanie Babies when a company called Ty Inc. launched them in 1994. Stores only got lines out the door once the toy's creator, now-billionaire Ty Warner, began pulling strings to juice demand. Here's what Warner did. OK, so here's how you induce people into a speculative bubble. He refused to stock Beanie Babies at Toys R Us and Walmart. Instead he created an illusion of rarity by only selling them at small toy stores and independent shops. Even if you did find a retailer, every store's supply of Beanie Babies was limited to 36 of each animal, so inventory restocks drew a crowd. This, combined with Warner's decision to start “retiring” certain animals in 1995, created artificial scarcity and a mass panic to stock up on Beanie Babies.  Soon, an aggressive resale market was born, replete with magazines and blogs and even trade shows for these Beanie Babies. One woman's guide to the secondary Beanie Babies market got so popular that she was selling 650,000 copies per month and, on many days, she did two or three radio interviews before her kids woke up for school. Ty Inc. later gave her an award for boosting sales. At Peak Beanie mania, Ty Inc. and legions of speculators actually made hordes of money: The stuffed animals accounted for 6% of eBay's sitewide sales in 1997 and 10% in 1998. Beanies averaged a resale value of $30—six times their retail price—but rare ones, like the Princess Diana bear, went for hundreds or thousands of dollars (and now you can find one online for $15 bucks). Ty Inc. hit $1.4 billion in sales in 1998, which is what Mattel grossed in Barbie dolls in 1995. At the end of the year, Ty Warner gave all ~250 employees holiday bonuses equal to their annual salaries. But most regular people didn't sell their Beanie Babies at their peak price. And unfortunately for them, the hype subsided. Anticipating a drop in interest as more kids reached for Pokémon and Furbies, Ty Inc. announced it would stop making Beanie Babies at the end of 1999, and that poked a hole in collectors' this-will-never-not-be-popular mentality and that sent demand plummeting. There were no underlying fundamentals to Beanie Babies' value. That's all that I've got on that speculative craze.   So let's review how this happened with both speculative crazes - Dutch tulips and Beanie Babies: Investors lose track of rational expectations. Psychological biases lead to a massive upswing in the price of an asset or a sector. A positive-feedback cycle keeps inflating prices. And soon, investors realize that they are holding an irrationally-priced asset. Prices collapse due to a massive sell-off, and an overwhelming majority go bankrupt. Now, much stock market investing is based off of buy low and sell high mentality. And stock investors can get caught up in similar crazes.    But because many stocks are tied to productive companies, the stock investor deals with smaller bubbles. A lot of times, the stock price can double, triple, or even 10X even though that company is not even profitable. Buy low & sell high. Well, that sounds easy. But why is this harder to do than it sounds? It's called the cycle of investor emotions.   It starts here with… optimism. Because you HEAR about 10% stock returns or people making money with Dutch tulips or Beanie babies.    Let's say that you aren't fully invested in the stock market. But some friends are, and they're achieving small gains.   Then comes excitement. The market is now up some more. Hey, what's in motion tends to stay in motion.   More friends are telling you how much money they're "making".    You're soon experiencing a full-blown case of FOMO—Fear Of Missing Out.   The next stage is the Thrill you feel. So you jump into the stock market fully, rationalizing with something like, "Hey, I'm a momentum investor". Sounds pretty good, I guess.   Now that you're in, it actually feels fantastic to you for a short time. You figure that some days, you're making more from stocks than your job. Winning activates dopamine.    Dopamine is a brain chemical that's known as the “feel-good” hormone. It gives you a sense of pleasure. It also gives you the motivation to DO SOMETHING when you're feeling the pleasure.    So then, you add MORE shares… at an elevated price until you are FULLY invested. Now everyone is "making money", even your Uber driver.   The next stage is Euphoria - The peak! As you can see, this is the Point of Maximum Financial Risk.    OK, now, remember the simplicity of “buy low, sell high”?   Well then, savvy stock investors should now be SELLING here in my example - at the HEIGHT.   Now be “selling”? Leaving the party at its crescendo? Stopping the dopamine flow? Yes, exactly… and THAT'S why it's so difficult.    What happens after the stock market peak? Overbought, with bloated price-to-earnings ratios, the market soon drops 10% from its recent high.    That's what's known as a correction - a drop of 10% or more. Now you feel a little ANXIETY. Your dopamine flow is stifled.   Next, you tell yourself, "I shouldn't be worried because I'm a long-term investor." It's down 15%. You're experiencing DENIAL & FEAR.   Now you're checking the Robinhood app almost hourly to see if it will recover.   Next, comes Desperation & Panic - Stocks are down 20%, that's the definition of a bear market. You're devoting more mindshare to this each day than what's healthy.   Then there's Capitulation - Down 30%, you finally surrender to a FEAR of FURTHER LOSS. You're getting so sick of months of losing. You finally do it and cash out your stocks into a safe money market fund. Now you're out.   And you rationalize and justify doing this because you tell yourself, "You know, at least when I wake up tomorrow, I'll know that I haven't lost money AGAIN. And THAT gives me certainty.”    The next stage in the Cycle of Investor Emotions is Despondency - You realize that what you've done is the polar opposite of successful investing. It's complete. You've now bought high… and then sold low.    Next, stocks completely bottom out. But this is actually the Point of Maximum Financial Opportunity. Instead, you should be buying.   But you can't. Because you're experiencing the next investor stage - Depression. You're so full of contempt for the situation that the idea of actually buying at bargain-basement levels again is simply inconceivable. You've been burnt badly.   Then, there's Hope & Relief - The market has begun ticking up after the crash. It soon should be clear that share prices are FAIRLY VALUED again.    But you don't buy the recovery story. You wait until enough price growth occurs that the confidence and Optimism stage is felt again before you'll even consider getting back in and buying.   And the entire pattern repeats.   That's the “cycle of investor emotions”. There's an average of 3-and-a-half years between each stock bear market, BTW.   Of course, we've been kind to call this all “investing”. It's more like speculating.   But here's the real problem—most investors THINK they're better than average stock pickers, so they keep playing this game. This effect has a name. It's called illusory superiority.   It's like how at least 70% of people think they're better than average drivers, despite the statistical impossibility.   Even professional money managers fall prey to this! Fewer than 10% of active U.S. stock funds manage to beat THEIR benchmarks.   The renowned British economist and value investor Benjamin Graham once said: "The investor's chief problem—even his worst enemy—is likely to be HIMSELF." Well, as real estate investors, we largely SIDESTEP the cycle of investor emotions for two main reasons.   Returns are more stable.   Real estate, we sidestep this emotional roller coaster. Not only do we have stable prices, but appreciation is one of just 5 ways that you're simultaneously paid.   RE also has monthly income. Dutch tulips or Beanie Babies don't pay you a durable monthly income stream. They don't provide an income stream at all.   And finally, RE is a REAL asset that fulfills a REAL human need.   I hope that you enjoyed this journey through speculative bubbles today and how they play into human psychology and investor emotions.   Go ahead and tell a friend about Get Rich Education.   If you've got a friend or family member that you think would benefit from the knowledge drops here on the show, you can simply tell them to grab the free Get Rich Education mobile app.   That's a convenient option for listening every week for both iOS and Android.   My name's Keith Weinhold and I'll be back with you right here… next week. Don't Quit Your Daydream!

Get our newsletter free here or text “GRE” to 66866. Storing your money at a bank entails more risk than you think. Your deposit is a bank's liability. Banks must take risks with your money because they don't charge you fees. Banks used to have a 10:1 reserve ratio. As of March 2020, all reserve requirements are now eliminated. Rather than storing lots of money at the bank, borrow lots of money from the bank. US households own $41T of owner-occupied property—$29T in equity, $12T in debt. The national LTV ratio is 30%, historically low. That's 70% equity. Of the five ways real estate pays: one profit source is the market, two are from the tenant's job, and two come from the government. Many Millennials plan to rent forever. 63% have nothing saved for a down payment. The interest-rate lock in effect keeps constraining the available supply of homes. This forces more homebuilders to build. Last week, NBC Nightly News covered the rise of build-to-rent communities. Resources mentioned: Show Notes: www.GetRichEducation.com/455 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:   Welcome to GRE! I'm your host, Keith Weinhold. Do you have any idea what banks do with your money? How home equity is like a bank, hot Millennial rental trends, and the proliferation of Build To Rent real estate, today on Get Rich Education! ___________   Welcome to GRE! From Glens Falls, NY to Klamath Falls, OR and across 188 nations worldwide, the voice of real estate investing since 2014. You're listening to Get Rich Education. I'm your host, Keith Weinhold.   You did not wake up to be mediocre today. So we don't focus on long-term budgeting here.    Correlating financial betterment chiefly with reducing your expenses is just a race to the bottom. You and your peers would just be racing to the bottom.   We know that, instead, yes, arbitrage is created when you  borrow low and invest high. But the ultimate arbitrage - which is the gap or that spread, is when your quality of life vastly exceeds your cost of living.    That's that gap that you & I pry open ever wider together right here, every week.    Savers lose wealth. Stock investors maintain wealth. REIs build wealth.   Savers lose wealth because inflation makes holding onto a dollar like a block of ice melting in your hand.    Retail stock investors only MAINTAIN wealth because their 9 to 10% long-term return is worn down to less than nothing with inflation, emotion, taxes, fees, and volatility.   And real estate investors BUILD real, durable wealth.     If you have a mentality of trading time for dollars, then you  have a certain way of looking at your life.    If you realize that your investing mission in your life is to build things that pay you to own them, then you have a different way of looking at life.    The resources that you need to build those things are what we cultivate here on this show.    You know something though, by the time that I bought my first rental property, I didn't have all of that figured out yet.    It really wasn't until I bought my second property. It was also a fourplex, just like the first one. This second one cost $530,000. And check out how I bought it.    I bought it with a 10% down payment, interest-only loan, and interest rate of 7⅝%.    Yep, I took accumulated equity from my first four-plex and used it as a down payment on the second four plex.   Now, that way, I essentially had zero money in the deal - which is an infinite return strategy - and both fourplexes cashflowed.   Now, the interest-only loan on my second fourplex there… that gives some people pause.   Why would I do that?   That kept my monthly payment amount down - since I could pay only interest - and didn't have to pay principal. That turned a property with a small cash flow into a nice cash flow.   Yeah, some people don't like interest-onlys because then the tenant isn't paying down your principal for you.    I typically take interest-only loans because for every dollar that doesn't go into your illiquid principal as equity, instead, it becomes a dollar of liquid cash flow that goes into your pocket.   In fact, changes are that the reason that you have fat equity in home right now is from market appreciation, not principal paydown.   In fact, why don't I approach the classic GRE principle of “your return from home equity is always zero” from a new and novel angle here today.    Gosh, this could make you hundreds of thousands or millions over your investor career.   Imagine a bank. We'll call it a red bank. This bank is offering you zero rate of return, it's difficult for you to withdraw your money from it, and this red bank might not even let you withdraw your own money at all - it is at their discretion.    How motivated are you to hold your money at that bank? Well, you aren't at all.    Well, I just described equity that's locked inside properties… and that's why… your properties make terrible banks.   Equity is the opposite of you being liquid.   Instead, the GRE Way is leverage and arbitrage, but it needs to be supported by cash flow.    So, we are not quite on an island here with our strategy, because we're still connected with the mainstream finance world - but we're, say, a peninsula then.    And, like a peninsula, maybe, real estate keeps you insulated - though not completely disconnected from that more volatile stock and bond shuffle that most people are on - which provides little to zero leverage or cash flow.    Do you know what that stock and bond shuffle is - that seesaw?   Let's remind ourselves… that when money flees the stock market, it usually ends up in bonds. As demand for bonds goes UP, interest rates go DOWN. Then, as interest rates go down, investors go back to stocks in pursuit of yield, and everything reverses. It's an ebb and flow of funds which often provides you with zero real return. That's how that seesaw goes. So rather than get a part-time job, which is selling your time for dollars, get a few rental properties instead.    Whether you manage them yourself or you manage the manager - like I do, I manage managers… you've got the income stream of a part-time job with an asset that appreciates at the same time.   As time passes, the reason that you will feel satisfied is because you took strategic risk.   Now, to stick to the bank analogy theme here, a lot of people still don't realize that when you take your money to the bank, you are a creditor of the bank, and the bank is now lending your money out.   So, just think about what you're doing - well, you yourself probably aren't doing so much of this - you're probably a better than average investor since you're listening here.   But think about those depositors that keep a lot of money at the bank.   Yes, we know you're losing to inflation, but besides that, just think about what happens to your money this way.   What about a parking garage and your car? OK, when you park your car at a valet, the valet is supposed to turn around and park it in a garage.   The valet does not have the right to take your car and let an Uber driver go make money with it while you're off having dinner.   And then maybe they'll give you the same make & model back at the end of the night… and they stick YOU with the risk of having a problem with your car - or your money.    That's what banks are doing with your money when you park it there. It's like a valet letting an Uber driver use it and take risks with it without your knowledge.   What isn't FDIC-insured is… at… risk.   Well, what's the alternative to banks lending out the money that you deposited with them? Well, the alternative to the existing system is that banks, instead, could make money off of fees that they charge you.   How is it that you avoid paying fees to your bank right now, like you are? I mean, afterall, banks have capital expenses, technology expenses, and employee expenses.   If banks charge fees to you rather than profiting from the spread that they get on lending your money out, we could have a safer system.   But most people like the allure of fee-free banking, partly because that's what they're used to.   Banks used to have to hold onto a dollar for every $10 they had in deposits. That's also known as a 10:1 fractional reserve ratio.    Well, the risks of parking your money at a bank went up in March of 2020. That's when the Fed just COMPLETELY eliminated reserve ratios for banks.    Now, for every $10 they have in deposits, banks can hold zero dollars in reserve.    Instead of parking your money at a bank, you do the opposite. You borrow from the bank, pay them their 7% interest and invest it in “Real Estate Pays Five Ways” property that beats 7%. Right there's… your arbitrage.   Now you're using their money instead of them using your money - like the valet that you entrusted your car with that lent out your car to the Uber driver while you were at dinner.    So outside of inflation, why is it risky to keep your money parked AT a bank - rather than borrowing from them. Because, as has often happened this year, banks implode.     Why are they imploding?   Well, just a couple years ago, when banks lent on mortgages at 3%, they're only collecting 3% for 30 years.    What happens to the BANK when interest rates go up? No one wants to buy their 3% debt. The depositor (that's you, the customer) wants their money back - because they can go invest it for 5% elsewhere. That's a problem for the bank.   And if the government does come in to give a bailout of your bank - we know by now that they're more likely to do it if it's a large bank, like Chase, Wells Fargo, or B of A.   Well, more gov't bailouts of banks… means more money printing… which means more inflation, making our eventual problems even worse.   So rather than keeping too much money at the bank, BEAT the bank.   Now, earlier, I mentioned how having a glut of equity in your properties is like keeping your money in a rather illiquid bank.    That is a germane point - a pertinent discussion to have right now, because take a look at this. This is America's equity position, right now.   This is for the latest quarter ended. The Federal Reserve Flow of Funds report tells us that    U.S. households owned $41 trillion in owner-occupied real estate. Alright, $41T is the value of that US residential property.   Of that $41T, how much do you think is in debt, and how much is in equity? I'm just doing some rounding here.   $12 trillion in debt and the remaining $29 trillion is in equity.   Therefore, the national loan-to-value "LTV" right now is about 30%. That is historically quite low.   Another way to say it is that America's primary residences have a 70% equity position today.    Yes, 70% of the value of American homes is locked into that vehicle that's famously unsafe, illiquid, and always has an ROI of zero.    Homeowners today have an average of $302,000 of equity in their homes.    Now, as inefficient as that might sound from an opportunity cost perspective from homeowners.   There is, at least, a little upside to your neighbors having a glut of equity even if you try to opportunistically hold a low equity position.   This equity provides a cushion to withstand potential price declines, but also prevents any future housing distress from turning into a foreclosure situation.    Those equity cushions around American neighborhoods help prevent the down… drain in prices that we saw from 2007 to 2009.   I've got more for you coming shortly, including, has the Build-To-Rent concept that we've discussed on this show for years & years finally gone mainstream now that NBC news is discussing it?   You'll hear that audio clip and get my commentary on it.   But first, I want to ask you, is this the "Golden Age" of quality NEWSLETTERS or what?    News WEBSITES are increasingly riddled with: paywalls, logins, banner ads, and pop-ups about cookies, the hassle of 2FA. Instead, a quality newsletter is just automatically “there” in your inbox.    Our valuable Don't Quit Your Daydream newsletter is full of real estate investing industry trends and forecasts, broader economic forces that are going to affect you in the future & more.    Get top investment property news in under 5 minutes.  You can sign up and get the letter free now at GetRichEducation.com/Letter.   In there, you get updates about what provider has inventory now - even exact physical addresses of properties.    In fact, I've featured two of my own rental properties in the newsletter as I broke down their financials. Again, sign up at GetRichEducation.com/Letter   I STILL write every single word of that letter myself. I don't think that a lot of founders do that.   Upon signup, you'll receive some lay of the land e-mails, and thereafter, I only send it about weekly. Not daily.   Alternatively, you can easily sign up for the letter by text. If you aren't yet one of many subscribers expanding your means with my letter, you can simply text “GRE” to 66866 for our DQYD Letter. It is free.   Again, you can sign up by simply texting “GRE” to 66866. More next. I'm Keith Weinhold. You're listening to Get Rich Education. _____________   Welcome back. You're listening to Episode 455 of Get Rich Education. I'm your host, Keith Weinhold.   Five weeks ago on the show, you'll remember that I reiterated why real estate does not pay 4 ways and does not pay 6 ways - it pays exactly five ways simultaneously.   Sometimes, amid uncertainty - and note that there's ALWAYS - uncertainty.   It never abates. People wondered when the Fed would stop hiking rates at a meeting. Now they did. People wondered when inflation would get down to 4 - now it has.    But those that worry excessively will still point to something else that's uncertain.   But in good times, bad times, and uncertain investing times, you might want to get more offensive. Other times, more defensive.   Real estate is both. Of the 5 ways you're paid, appreciation and cash flow serve your offensive side.   At the same time, your return on Amortization, Tax Benefits, and Inflation-Profiting all serve your defensive side.   Now, let's go and look at the sources - the headwaters - the genesis.    What are your 5 profit sources - for appreciation - it's the market. It's the vibrancy and diversity of the economic market that you bought in. That's where your appreciation emanates from.   For the second way you're paid, cash flow, it's your tenant and your tenant's job.   For the third way, your Return on Amortization - that ROA, that also comes from your tenant, since that pays your loan's Principal & Interest.   The fourth way, tax benefits, that's the gov't.   And the fifth way, your inflation-profiting, that also comes from the gov't.    Yes, that's the source, the headwaters for each of the five ways you're paid and knowing that can help you be mindful about what to pay attention to in your investment real estate portfolio long-term.   Yes, this is just with carefully-bought buy & hold real estate. Unlike most investments, if the value of your property goes down, you still get paid 4 ways.    So to review the 5 Ways Real Estate Pays SOURCES - where your money actually originates, it's:   Appreciation - from the market Cash flow - from the tenant ROA - tenant Tax Benefits - gov't And Inflation-Profiting - also from the gov't   Now, here at GRE, when we focus on your tenant and where your tenant comes from, you know, one word that comes up an awful lot is Millennials.   Why do we discuss Millennials so regularly? It's not because we're the first generation to embrace avocados or online dating over “in real life” dating or, it's the first generation to be raised in a world of participation trophies. Ha!    It's because, not only are Millennials the largest generation in American history, but they are in their prime household formation years.   Though there's a bit of dissension among demographers, many agree that Millennials were born between 1981 and 1996. That makes them Age 27 to 42 - they are prime household formation years.    BTW, you probably know of the generation after that, Gen Z. They were born between 1997 and 2012, making Gen Z age 11 to 26.   But do you know about the generation after that? That is Generation Alpha. They were born between 2012 and today, making Generation Alpha age 0 to 11.    Well, the Millennial homeownership rate lags that of previous generations of people that were the same age. So this is why you have such a deep pool of people that's driving demand for your rentals.   Millennials have the misfortune of being stung by back-to-back global crises.    When they were coming of age in 2008, many couldn't get a job during the Global Financial Crisis. Then the pandemic disruption made getting their independence pretty bumpy.   In fact, fully 18% of Millennials say that they plan to rent forever. Forever! That's up from 11% just five years ago.    Not just a few, but the MAJORITY of Millennial Renters have zero down payment for house savings. 63% of them have absolutely nothing saved for a house.    And in fact, another 14% have less than $5,000 saved - which is close to nothing. That is all according to a survey from Apartment List.    More Millennials plan to rent forever.    Now, I've done a fair bit of research on Generation Z  real estate trends - again they're the age between 11 and 26. And there are a few more Gen Z homeowners than you might think already.    But the short story on Gen Z, just isn't that compelling. To distill everything I've researched, most Gen Zers want to own a home but few can afford it. Well, no kidding. That's not a very novel takeaway, but that's the REAL story there.   If Millennials are your current renters, then Gen Z are your current and future renters.   Now, I've talked to you a good bit about the “interest rate lock-in” effect. So many homeowners have ultra-low mortgage rates that they don't want to sell their home, and when they don't put it on the market, that further constrains supply.   Well, Redfin recently brought some new color to the interest-rate lock-in effect. They've shared some really interesting material with us.   92% of mortgage borrowers have an interest rate under 6%.   80% of them have an interest rate below 5%.   62% of these people have an interest rate below 4%.   And a quarter have a rate below 3%.   New listings of homes for sale and the total number of listings have both dropped to their lowest level on record for this time of year… and that is fueling homebuyer competition in some markets and preventing home prices from falling.    In fact, Redfin tells us that the national ASKING price for homes is the same that it was one year ago.   Sale prices increased most in these 5 metro areas. Cincinnati leading the way at (9.2%). We've got cash-flowing Cincinnati property at GRE Marketplace. Miami (8%) not really a cash flow market there. Third-best is Milwaukee (8%), rounded out by Fort Lauderdale, FL (6%) and Virginia Beach, VA (5%).  They are the 5 metros with the highest appreciation. Current months of national housing supply is still just 2.6 months - scarce inventory. 6 months is a balance market.   Homes that sold were on the market for a median of 28 days. That is the shortest span since September. There's a bit of a seasonal factor there though.   Now, when we talk about the paltry supply of homes since existing homeowners don't want to lose their low rate, it's forced more homebuilders to build - in order to make some inventory available.   It's made a good opportunity for you to buy these homes that are built for renters from Day 1, and rent it to a tenant yourself.    Now, I know that your life is more interesting than watching the NBC Nightly News with Lester Holt and then dozing off to sleep at 9:30 PM (ha!), so in case you didn't catch it, here it is on “Build-To-Rent” last week.   It really takes the perspective of the RENTER and why they want to pay your rent to stay in a Build-To-Rent home… longer than they do for an apartment. This is about 2 minutes long & I'll be back to comment.   BTR on NBC News:  https://youtu.be/BXwTerRQWNo?t=954   Yes, that's the popularity of build-to-rent homes. Something that we've been discussing here at GRE, for, gosh, maybe 8 years now.   Like they said there, rents are on the rise. But they're not rising nearly as fast as they were 1 and 2 years ago. Rent growth has slowed for both SFHs and apartments.   I think that the assurance for prospective income property owners like you is that in your Build-To-Rent properties, you can have a reasonable expectation of high occupancy and low vacancy as long as you buy your SFRs in a decent market.   And see, more often than not, a builder is only going to build new, rental single-family homes if there are plentiful jobs nearby to support that.   So you can kind of crowdsource the due diligence that the builder did on what's demographically and economically feasible if you choose to add these property types.   Despite the build-to-rent properties added, today, America only has half as many homes available as 2019.   Compared to just a year ago, there are 5% fewer available properties today.    But, we've got available Build-To-Rent and existing income property here at GRE Marketplace. Yes, just create one login, one time, and get access to all national providers at GRE Marketplace.com.   But say you want a little help, a little coaching. Say perhaps you haven't bought property before, or you haven't bought one in a while, or you haven't bought property across state lines yet - since that's where the best deals usually are - or you just want to lean on a coach to bounce ideas off of as you're looking for your next investment property.   Well, in that case, you can rely on our free coaching service. That's at GREmarketplace.com/Coach   Our coaches don't blow the whistle at you for missing a play. You'll never find them as grumpy as, say, New England Patriots' Coach Bill Belichick. They're not that kind of coach. It's not the kind of coach that will ask you to start your morning with an ice bath.   And if you're new to real estate, there's no such thing as a stupid question with GRE Investment Coaches. No penalty flags are thrown.   To find that property that builds your residual income and pays you five ways, you can choose which coach you want to have help you.     Coaching is a completely free service to you.   What they do is... Learn your goals Find you the best off-market deals nationwide Find the property provider with incentives. (One provider recently offered 4.75% interest rates, another free PM for one year.) Help write your offer if you would like that Submit earnest money Navigate the inspection Interpret your appraisal Check your management agreement And just ensure a smooth closing day for you Your Investment Coach can do more than this. If you prefer, they can do less than this.   GRE Marketplace is where the coaches source the properties. It is more like an organic farmers' market than a big box store. Property offerings change frequently.   Because there are limited slots available to talk with them through phone or Zoom, it helps if you've got your down payment and are ready to go.   Sheesh. If it were any easier, they'd even make your down payment for you.   Did I mention that it's completely free? To get started, choose your coach and book a time. Start at GREmarketplace.com/Coach   Until next week, I'm your host, Keith Weinhold. DQYD!

Learn how Sterling Chapman generates cash from single family homes in order to buy larger apartment buildings. Welcome to Pillars of Wealth Creation, where we talk about building financial freedom with a special focus in business and Real Estate. Follow along as Todd Dexheimer interviews top entrepreneurs, investors, advisers and coaches. Sterling is a proud family man with a bachelor's degree in Finance and an MBA from Louisiana State University. He spent his early career in the financial services industry focusing on retirement and insurance planning before eventually transitioning to the Telcom industry. Through his successful corporate career in Telcom, Sterling has mastered the art and science of sales, funnel management, marketing, account management, strategic business planning and financial forecasting. He began his real estate investing journey in early 2018 purchasing single-family houses and quickly moved up to duplexes and fourplexes, flipping houses and eventually large multifamily. Sterling has over $26.5M in Assets under management and his portfolio now consists of 82 single family or small multifamily rental units, a 53-unit apartment complex in Newnan, GA and a 70-unit complex in Rock Hill, SC. Self-managing and overseeing the renovations personally for the first few years has taught Sterling a ton about the industry. In addition to founding Crestworth Capital, he is also the Host of The Rent Roll Radio Show, Co-host of the Red Stick REIA and has been featured as an industry expert on dozens of other real estate podcasts. 3 Pillars 1. People 2. Buy for cash flow over appreciation 3. Building systems/processes that remove me from the business Books: Rich Dad Poor Dad by Robert Kiyosaki, The Almanack of Naval Ravikant by Eric Jorgenson You can connect with Sterling on Facebook, Instagram, Twitter, YouTube, TikTok, www.crestworthcapital.com or sterling@crestworthcapital.com Interested in coaching? Schedule a call with Todd at www.coachwithdex.com Connect with Pillars Of Wealth Creation on Facebook: www.facebook.com/PillarsofWealthCreation/ Subscribe to our email list at www.pillarsofwealthcreation.com Subscribe to our YouTube channel: www.youtube.com/c/PillarsOfWealthCreation

Join Mike Cavaggioni with Justin Moy on the 192nd episode of the Average Joe Finances Podcast. Justin shares his experience and expertise in building wealth through apartment syndications and helping investors invest passively in this sought-after asset class.In this episode, you'll learn:Tax advantages of investing in real estateWhy can't people rely on traditional retirement accounts anymore?Passive ways of investing in real estateThe most significant risks in investing in real estate or a syndicationAnd so much more!About Justin Moy:Justin has been in real estate as a career in his entire professional life. He started out selling single-family homes in the 3rd most competitive market in the country and was able to become a top producer within his 2nd year at the largest firm in the area.Through that experience, Justin realized there was a difference between being rich and being wealthy. He started to look for ways to turn my high transactional income into long-term wealth so I could start to buy back my time.When he learned about apartment syndications, everything clicked for him. It provided a significantly quicker time to large financial returns than investing in SFHs, it provided a truly passive form of real estate investing, and it provided the ability to leverage the knowledge and time of industry experts.After Justin discovered this niche in passive real estate investing,he dove in with both feet, now doing everything he can to spread the word about this investing type because he truly believes if all career-driven professionals understood it and knew about it, there isn't anyone who wouldn't participate.Find Justin on:Website: https://thedefinitiveguidebook.com LinkedIn: https://www.linkedin.com/in/passive-realestate-investing/Average Joe Finances®All of our social media links and more: https://averagejoefinances.com/linksAbout Mike: https://themikecav.comREWBCON: Join me at the Real Estate Wealth Builders Conference. Use promo code “Mike” to save 10% on tickets. https://averagejoefinances.com/rewbconImportant Tools and Resources that I UseFinancial Resources: www.averagejoefinances.com/resourcesCRM Tool: www.averagejoefinances.com/crmPay Off Your Mortgage in 5-7 Years:www.theshredmethod.com/averagejoefinanceshttps://bit.ly/replaceyourmortgageFind a REALTOR® in any state: www.averagejoefinances.com/realtorMake Real Estate Investing Easier with DealMachine:www.averagejoefinances.com/dealmachinePodcast Hosting: www.averagejoefinances.com/buzzsproutPodcast Editing Services: www.editpods.com*DISCLAIMER* www.averagejoefinances.com/disclaimerSee our full episode transcripts here: www.averagejoefinancespod.com/episodesSupport the show

Get a 4.75% mortgage rate or 100% financing on new-build Florida income property. Start here. If I gave you $10M, learn why that probably wouldn't even help you. We revisit how “Real Estate Pays 5 Ways”, a concept that I coined right here on the show in May 2015. Some think real estate pays three, four, or six ways. I revisit why there are exactly five. Real estate has many paradoxical relationships. I explore. Americans are living in homes longer than ever, now a duration of 10 years, 8 months. The active supply of available housing dropped again. Get an update on the gambling industry. A major sports gambling platform has offered to advertise with us. Take my free real estate video course right here.  Zillow expects US home values to rise 4.8% from April 2023 to April 2024.  Months of available housing supply is currently 2.7 per Redfin. Resources mentioned: Show Notes: www.GetRichEducation.com/450 Active Supply of Available Homes: https://fred.stlouisfed.org/series/ACTLISCOUUS 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 transcript:   Welcome to GRE! I'm your host, Keith Weinhold. If you were gifted $10M right now, why that very well wouldn't help you at all.   Learn a fresh take on how Real Estate Pays 5 Ways at the same time. A housing market update with perennially sagging inventory supply amounts and more outlooks for stronger home price appreciation than many expected. Today, on Get Rich Education.   Welcome to GRE!    From Montevideo, Uruguay to Montecito, CA and across 188 nations worldwide, you're listening to one of the longest-running and most listened-to shows on real estate… the voice of real estate investing since 2014. I'm your host and my name is Keith Weinhold.   How would you like it if I gave you $1M?   You know what? That's not enough to make my point. Make it $10M. I adjusted for inflation - ha! How much would you like it if I gave you $10M? How would that feel?   But what if it comes with this one condition.   What if I told you that I'll give you the $10M, but you are not waking up tomorrow?    Not waking up tomorrow? No way!   Now you know that waking up tomorrow is worth more than $10M.   This is how you know that your time and your life are worth infinitely more than any dollar amount.   Hmmm… if your time is so valuable. Then why did you check Instagram 15 times yesterday to see who viewed your Stories? Ha!   Why are you spending time with your AI girlfriend? Ha!   Get Rich Education is ultimately about living a rich LIFE - whatever that means to you.   And we do approach that from the financial perspective here. Money does matter… because leverage, cash flow, and inflation-profiting enable you to BUY time.   We're really one of the few investing platforms… this show is one of the few places with the audacity to tell you that - sure, a little delayed gratification is good… but the risk of too much delayed gratification is DENIED gratification.   Denied gratification is a terrible investing risk that most people either don't give enough weight to - or don't factor in at all.   And getting a $10M windfall is not as great as it sounds either.    History shows that the $25M Lottery winner quickly loses their money. Why does that happen?  Because it seemed like it was effortless to get the windfall, and because they don't know how to handle an amount like that.  It's really similar to a capital gains-centric investor that gets a windfall.  See, cash flow investors like you & I - we can be more measured because your income stream is metered out over time. That's why you are less likely to be irrational with your gains.     Now, I touched on some of those ways that you're paid in real estate investing.    Real Estate Pays you 5 Ways™ simultaneously. That's a concept that I coined right here on the GRE podcast. We since went on to have it trademarked.   Do you know when I first introduced that concept right here on the show - the month & year?    And I've since gone on to do a lot with “Real Estate Pays 5 Ways” to help other audiences understand real estate's five distinct profit sources.   Well, I had someone on Team GRE here do some digging into some of our legacy shows - our past episodes… because I wanted to know when I first said it… and it was apparently in May of 2015, so 8 years ago that I introduced it.   Since then, many other thought leaders have gone on to cite the phrase. Someone other than me even wrote a book on it. And that doesn't bother me at all. I'd rather that other people and readers get good ideas. That's more important than getting the credit.   Of course, c'mon, you can recite these 5 now like they're the Pledge Of Allegiance or something.    This is as automatic as the Lord's Prayer is for Christians. The five are: Appreciation Cash Flow Your return on Amortization and Tax Benefits and finally Inflation-Profiting But now, let's dissect this frog here a little. Why five ways? Why not another number, like real estate pays four ways or six ways?   It is five. There are no more or less. Each of the five are a distinct benefit.   A common flawed case that Real Estate Pays 4 Ways is that most real estate teachers omit the Inflation-Profiting benefit on the long-term fixed interest rate debt.   Any GRE devotee knows that with 5% inflation on $1M in debt, you only owe the bank $950K of inflation-adjusted debt after year one, $900K after year two, etc. (And in the meantime, the tenant pays all of your mortgage interest.)   Some that make the 4 Ways case question the Tax Benefit. Could the tax benefit really be considered a profit source, or is it just a deal sweetener?   It's a profit source.   Outside the real estate world, to obtain a tax write-off, you must have a real expense backed up with receipts, like building a new computer equipment or buying a new farm tractor.   Instead, the magic of real estate tax depreciation says that you can just write off 3.6% of the improved property value each year just for doing... nothing all year. No improvements necessary.   It's a phantom write-off, yet legitimate to the IRS.   Then the 1031 Exchange means you can endlessly defer all of your federal capital gains tax for your... entire life.   Yes, it's one of the few places in life where procrastination actually pays.   I've even heard some say that they're a fan of GRE's Real Estate Pays 5 Ways™, but they've discovered a sixth.   This often involves an event that's either unlikely or falls into one of the existing 5 Ways.   For example, "My appraisal value exceeded the contract price. I'm buying it for $320K, but the appraisal is $340K. I got $20K in instant equity. See, I was paid a 6th way."   No.   I mean, good for you, $20K of instant equity is a nice sweetener - that's a $20K credit in your net worth column that you received the moment you opened up that appraisal e-mail from your lender and saw it. Nice!   But an appraised value that exceeds the purchase price is not COMMON enough to be expected… and the 5 Ways are.   Also, you can make the case that "instant equity" is covered in the first way you're paid, Appreciation.   The reason that we invest in real estate is because there's virtually no other vehicle in the world where you can expect to be paid five ways at the same time.   That's a foundational principle - it's a core concept here at GRE.    It's why we do what we do. It answers the compelling “why” for real estate better than any answer there is…   …and that's why anything less than a 20 to 25% combined return when you add up all five ways is actually disappointing - and that's done with low risk - which is paradoxical almost anywhere else in the entire investing world.    If you haven't yet, take my free “Real Estate Pays 5 Ways” course in order to really understand each of your five distinct profit sources, where they come from, and how that all fits together.    It's at GetRichEducation.com/Course. The free “Real Estate Pays 5 Ways” short course is free at GetRichEducation.com/Course    Let's talk about real estate trends.   You know, real estate investing has a lot of relationships that you just wouldn't expect.    Part of that is because it intersects with the economy. Economies are complex and you get these relationships that are counterintuitive.    For example, in a recession, mortgage rates and all interest rates tend to fall, not rise.    Another exhibit is how debt BUILDS wealth with prudent leverage.   Another one that I've explained extensively here and the show and elsewhere is that higher mortgage rates correlate with higher home prices - not lower ones. That throws nearly everyone off.   Some physical real estate trends have been counterintuitive.   About 30 years ago in America - the 1990s - a new trend was fueled that everyone wanted to have a big kitchen.   New homes were often built with a big, fancy kitchen in the center of the home. Open floor concept - no galley kitchens anymore. That began back then.   And this was really the advent of - at the time - what we considered luxury amenities like granite and quartz kitchen countertops.    Anymore, that's become standard. Even our build-to-rent providers at GRE Marketplace often have new granite countertops in rentals.    But the paradox here is the assumption that a big emphasis on kitchens would mean that more people would start cooking at home.    Oh, no. Just the opposite, in the last 30 years, despite the big kitchens, more people eat out at restaurants and fewer people eat at home. Another real estate paradox.   Another counterintuition was the pandemic. Society locked down, people lost their jobs and you think that there are going to be mass foreclosures because with no job, no one can afford their mortgage payment.   People thought the pandemic will cripple the housing market. Oh, it was just the opposite. That created a housing boom. Everyone wanted their space. Another paradox.   Remember here on the show, shortly after Biden was elected, I told you that this administration - for better or for worse - will not let people lose their homes.    Then we had high inflation on the heels of the pandemic. That was bad for consumers and good for real estate.   But high inflation is supposed to mean that bitcoin and gold would surge. Well, another paradox, that brought crypto winter, and gold did nothing in high inflation, until more recently here.   Rather than high delinquency rates we've got low delinquency rates. In fact, the mortgage delinquency rate has been steadily falling for almost 3 years now. That's because of strong borrowers and tough lending standards.   Now, another real estate investing trend, though there's nothing paradoxical here, is mortgage rate resets.    Here in the US, on 1-4 unit rental properties, you're in great shape, whether you locked in your interest rate at 3% or 7% - the thing is that you have a steady payment… and on an inflation-adjusted basis, your same monthly payment amount goes DOWN over time - it's a tailwind to your personal finances.   Inflation cannot touch your steady, locked-in P & I payment.   But many Canadians are up for renewal with their 5-year fixed rate, 25-year amorts.    Yeah, just across the border in Canada, they don't have these 30-year fixed rate amortizing loans.    Their rate resets every five years.   One Canadian homeowner that I talked to, he doesn't live in that posh of a home in Ontario, it's just a little above the median housing price.    His family's loan terms are about to reset on the primary residence and it's expected to increase their monthly payment by $1,280 / mo.   How would you feel if that happened to you overnight? It's a nuisance at best. It might even crimp your quality of life - or worse.   That can't really happen to you in the US.    Having a 30-year FRM is like you having rent control as a tenant.    In coastal areas, some tenants that have a rent control deal - New York, California, Oregon - they want to live in their home for decades under rent control because there's a ceiling on their rent. Move out of their unit - lose the deal and they'd have to reset somewhere else.   It's the same with you as an American homeowner or REI in the 1-to-4 unit space. Your P&I price cannot rise.    And, I've talked about the interest rate lock-in effect before, constraining the housing supply.    Get this. Just last week, First American Title Company informed us that the average resident duration in a home hit a record high.    Amongst this lower intrinsic mobility rate, interest rate lock-in effect, and other societal trends, the average resident duration in a primary home in now 10 years, 8 months.    Lower mobility. Studies show that people are holding onto their cars longer than ever, and people aren't parting with their real estate either.   So, then, with fewer properties coming to market, let's update the available supply of homes.    This is pulling from the same set of stats that I've been citing for years, in order to be consistent. Check this out. This is the FRED Housing Inventory - the Active Listing Count of Available US homes.   Remember, historically, it's 1-and-a-half to 2 million units available. In 2016 it was still 1-and-a-half million.   Then in April of 2020 it dipped below 1 million and fell sharply from there - which I've famously called this era's housing crash.    It was a housing SUPPLY crash - which hedges against a price crash.   It fell to as low as 435,000 a year later in mid-2021. Gosh, under a half million.   It's rebounded as builders know that they need to build more homes. Six months ago it got up to 750,000 available homes - which is still less than half of what  America needs.   And now, today, did the supply get up toward at least 1 million yet? No.    It has dropped back the other way to just 563,000. This astounding dearth of housing supply - it's a condition that we could very well be in for over a decade.   This scarce supply is a long-term American condition. Yes, it's good for your real estate values - both present and future. But it is a problem too. It's a contributor to homelessness!   The Covid home improvement boom is officially over. So says Home Depot. They posted a revenue drop in the first quarter and warned that annual sales would decline in 2023 for the first time in 14 years.    Home Depot said that shoppers are now holding off on the big-ticket purchases they made during the pandemic and are choosing to break up larger projects—like remodeling a bathroom—into smaller, bite-sized pieces.   There's a fascinating new study from a bipartisan think tank shows that everyone wants to LIVE ALONE.   That's what Business Insider just reported on. Now, of course, the term “everyone” is an exaggeration.   But Statista and Our World In Data tells us that - get this - this is the number of SINGLE-PERSON households in the US - people living alone.   Back in 1960, that figure was just a paltry 13%.   By 1970, 17% of households were people were living alone.   Every ten years, that percent crept up to 23, 25, then 26%. By 2010 it hit 27% and by 2022 it hit 29%.   Now, you can't think that's good for society - to have all these single-person households. Almost 3 in 10 living alone. C'mon. Find a good spouse.   But in any case, that's good for you as a REI, when, say, 10 people live amongst 5 homes rather than 3 homes - absorbing all that housing supply and keeping it scarce.     Even if the US population stayed the same, there's more home demand - with that trend.   Of course, the US population is growing, though really slowly, probably just a few tenths of 1% this year.   But because of all the Millennials and the embedded “Work From Anywhere” trend, housing demand is pretty strong.   The recent rental housing demand and rent boom came almost entirely due to a surge in household formation -- young adults leaving the nest and roommates decoupling to get their own space... especially in urban areas.   People working from home want more space (without a roommate) AND are willing to pay more for it -- and able -- to pay more for it.   So if you're bullish on work-from-home remaining the norm for at least a chunk of the population (and I am), you should be bullish on the rental demand outlook.    And this has really revitalized America's SUBURBS - that's the area where you find that space.   The WFH-fueled rise of the suburbs is a wake-up call to cities, where, in the case of NYC, 26 Empire State Buildings' worth of office space now sits empty.  The typical office worker is spending $2,000–$4,600 less annually in city centers. Because even if they GO to the city to work, they might only do that 2 days a week now - not 5. I've got more for you straight ahead, including a new forecast on how much home prices are expected to rise this year.   Again, check out my free video course if you haven't “Real Estate Pays 5 Ways”. Get it at GetRichEducation.com/Course   I'm Keith Weinhold. You're listening to Get Rich Education.   Yeah, big thanks to this week's show sponsors. I'm only bringing you those places that will bring real value to your life.   Now, here at GRE, I recently read an offer that one of these major sports gambling platforms sent us. They want to advertise on the show here.    Do you want to hear sports gambling ads on GRE? I've got an opinion about that, that I'll share with you shortly. Gambling is not the same as investing.    If you're wondering why you're hearing more about gambling, especially sports gambling than you had just a few years ago, well…   Now, just last week, it was FIVE years ago that the Supreme Court lifted a federal ban on sports gambling in the US.    That spawned a multibillion-dollar industry that's transformed how Americans watch, talk about, and experience sports.   Americans bet $95B on sports in legal jurisdictions with consumer protections last year. That's more money than the amount spent on ride sharing, coffee, or streaming… and you can bet that the off-the-books gambling number, if added in, would make that WAY higher. Two sports betting companies, DraftKings and FanDuel, control 71% of the US market, per gambling analytics firm Eilers & Krejcik. Gosh, that's almost a duopoly right there. But despite that, these companies have struggled to turn a profit. FanDuel recorded its first quarterly profit just last year, and DraftKings has YET to report a profitable quarter. Well, I'll just tell ya, it's one of those two big companies that inquired about advertising on GRE. Of the 50 states, the number is 33 that allow it. That's 2/3rd of the nation that has legal sports betting (Washington, DC, has it too). Another four states have legalized sports wagering, but don't have any sportsbooks operating yet. Interestingly, the three most-populous US states—California, Texas, and Florida—have not legalized sports gambling. And they account for 26% of all teams in the major North American pro leagues. The number of women joining sportsbook apps jumped 45% last year, marking the third straight year that new women users exceeded men. Hmmm. I guess that's the growth market there. My inclination to have gambling advertising and associating with these companies is NOT to do it… not to accept that advertising income. I don't see how that's serving you. This feels like a conflict in my gut and in my heart. Gambling is sort of the opposite of investing for a stable rental income stream.  I mean, either way, I guess you're putting your money at stake. But that's about the closest common ground I can find.  At least at this time… and probably all-time, it's a “no” for gambling content here. That's not any sort of moral judgment on the activity at all. I mean, gosh, as a teenager, I was really into sports gambling, but it was the informal kind. My friend & I each lay a $10 bill next to the TV - Phillies vs. Mets. Winner gets the $20 bucks. So, my inclination is a pretty easy “no”. Hook up with our sponsors - they support GRE. That's Ridge Lending Group, offering income property loans nationwide. JWB Real Estate Capital - if you want performing income property, JWB really has Jacksonville, FL sewn up & locked down. They do one thing and do it well. Then, Freedom Family Investments. Get started with them for real estate funds that are ultra-low hassle. Text “FAMILY” to 66866.  Where will the next ten years take you & I on the show here? I would love to be along for the ride with you. I hope that you'll be here with me.   Let me just take a moment to remind you that I'm grateful to have such a large, loyal audience to… well, listen to the words that I say every week. Thank you for your support.   This show has almost reached the 5 million download mark. I've been shown that it's between 4.8 and 4.9 million downloads now. I'm genuinely honored and a little humbled about that even.    Let's listen in to this 3+ minute CNBC clip. This is Lawrence Yun, Chief Economist at the NAR - the National Association of Realtors talking about the housing market just last week.    Now, a little context here - historically, the NAR has tended to give these dominantly sunny side-up, glowing, everything is always good & getting better kind of remarks on the housing market.   But I've been listening to the NAR's Lawrence Yun for quite a while and think he's been rather balanced.    Here, he discusses how real estate sales volume is down - which has a lot to do with low supply, that mortgage rates are steady, and that prices are slowly rising in most parts of the nation.   [OK, Vedran. Here's where we play the insert.]   0:09-3:42 First words to keep are: “Lawrence Yun…” Last words to keep are: “... half of the country.”   https://www.cnbc.com/video/2023/05/17/home-prices-still-rising-despite-sales-dropping-says-national-association-of-realtors-yun.html   Now, Lawrence Yun did go on to say that he thinks that the Fed should lower interest rates by a half point, and more.    Let us know if you'd like us to invite Lawrence Yun onto the show. As always, you can leave your suggestions, questions, or any comments about the Get Rich Education podcast or any of our other platforms at our Contact center at: GetRichEducation.com/Contact   When it comes to national HPA, just last week, we learned that Zillow revised its home price outlook upward.   Between April 2023 and April 2024, Zillow expects home US home values to rise 4.8%.   You've got more signs that more & more American markets are being considered a seller's market rather than a buyer's market, which tilts toward price appreciation, though I still think pretty moderate price appreciation this year.    CNN recently published an article where they even posited the question: “Are Bidding Wars Back?” Yes, they are in a few markets.     Another measure of housing supply is the MONTHS of available supply. I think you know that 6 to 7 months of inventory is considered a balanced supply & demand market.   If it gets up to 10 months of supply, you tend to see little or no HPA.    Well, indicative of the low housing supply, we hit a winter high of 4-and-a-half months of supply.    And today, it's down to just 2.7 months per Redfin. 2.7 months. That's just another sign that demand is outpacing supply.   Then, among those entry-level homes, like the NAR's Lawrence Yun eluded to, they're even harder to find… and they're the ones that make the best rentals.    How hard are these to find? I mean, in some markets this can be even more rare than finding a true friend? Ha!   Is it as rare as the Hope Diamond? Or perhaps a Honus Wagner baseball card? Ha!   Well, the good news is that we actually have the inventory that you want at GRE Marketplace.   Besides that, we actually have something that you really like and that is - mortgage rate relief to help you with your cash flow.    Purchase rates have been hovering around 6 1/2% lately. That's the OO rate, so for rentals, it could be 7%+.   Well, how about rolling back the hands of time? Through our great relationships here and our free investment coaching, you have access to 4.75% interest rates on investment property - and many of these are new-builds in path-of-progress Florida.   Yes, our free coaching will get you the 4.75% mortgage interest rate, they'll even help write the sales contract for you if you're new to this, walk you through the property inspection, the property condition, the appraisal.    Yes, a 4.75% interest rate… today, from these homebuilder buydowns. I don't know how much longer that can last.    To be clear, you're not buying an income property FROM us. You're buying it with our help and our connections. It is all free to you. This is educational support for you.   In fact, our coaching support like this through our sole investment coach, Naresh is becoming so popular, that I can announce that we soon plan to add a second investment coach. Yes! A new one.   And interestingly, you have heard of this soon-to-be second investment coach because they've been a guest on the show here a number of times. Yeah, we'll make that introduction on a future show. You'll find THAT interesting.   But, our Investment Coach, Naresh, does have some slots open to talk with you and help you out. A lot of the best deals currently with these 4.75% rates are with new-build Florida duplexes and fourplexes.    You can use them for rental SFHs too. Last I checked, the deals were a little better on the duplexes and fourplexes.   You probably thought that Sub-6 and sub-5 mortgage rates are about as unlikely to make a sudden comeback as AOL or Myspace, but we've got them here now.    Now, that 4.75% is just one of two options that we have with some Build-To-Rent builders that are fairly motivated. So to review the first one fully… you can get a   4.75% interest rate with a 25% down payment 1 year of free property management and $1,000 off closing costs per deal That's one. Or, option 2 is: Zero down payment - yes, 100% financing 2 years free property management $1,000 off closing costs per deal Negotiable price, open to offers They are the two options.  It's rarely more attractive than this. If you hear this in a few weeks, or perhaps months, I doubt that these options will be there any longer.   So I'll close with something actionable that can really help you now.    If you want to do it yourself, that's fine, like thousands of others have, get a selection of income property - despite this national dearth of supply at GREmarketplace.com   Or, like I said, right now, it's really helpful to connect with an experienced GRE Investment Coach - it's free - our coach's name is Naresh - for those 4.75% interest rates or zero down program - whatever's best for you… you can do all that at once at GREmarketplace.com/Coach   Until next week, I'm your host, Keith Weinhold. DQYD!  

I've been in real estate as a career my entire professional life. I started out selling single-family homes in the 3rd most competitive market in the country. I was able to become a top producer within my 2nd year at the largest firm in the area.Through that experience I realized there was a difference between being rich and being wealthy. I started to look for ways to turn my high transactional income into long-term wealth so I could start to buy back my time.When I learned about apartment syndications, everything clicked for me. It provided a significantly quicker time to large financial returns than investing in SFHs, it provided a truly passive form of real estate investing, and it provided the ability to leverage the knowledge and time of industry experts.After I discovered this niche in passive real estate investing, I dove in with both feet, now doing everything I can to spread the word about this investing type because I truly believe if all career-driven professionals understood it and knew about it, there isn't anyone who wouldn't participate.Learn more: https://www.thedefinitiveguidebook.com/Influential Entrepreneurs with Mike Saundershttps://businessinnovatorsradio.com/influential-entrepreneurs-with-mike-saunders/Source: https://businessinnovatorsradio.com/interview-with-justin-moy-real-estate-investor-with-realm-investors

I've been in real estate as a career my entire professional life. I started out selling single-family homes in the 3rd most competitive market in the country. I was able to become a top producer within my 2nd year at the largest firm in the area.Through that experience I realized there was a difference between being rich and being wealthy. I started to look for ways to turn my high transactional income into long-term wealth so I could start to buy back my time.When I learned about apartment syndications, everything clicked for me. It provided a significantly quicker time to large financial returns than investing in SFHs, it provided a truly passive form of real estate investing, and it provided the ability to leverage the knowledge and time of industry experts.After I discovered this niche in passive real estate investing, I dove in with both feet, now doing everything I can to spread the word about this investing type because I truly believe if all career-driven professionals understood it and knew about it, there isn't anyone who wouldn't participate.Learn more: https://www.thedefinitiveguidebook.com/Influential Entrepreneurs with Mike Saundershttps://businessinnovatorsradio.com/influential-entrepreneurs-with-mike-saunders/Source: https://businessinnovatorsradio.com/interview-with-justin-moy-real-estate-investor-with-realm-investors

Solemnity of the Immaculate Conception, Cycle CLink to Readings for the Solemnity of the Immaculate Conception

Feast of the Presentation of the Lord, Cycle ALink to Mass Readings

Senior Teaghan Brostrom sits down with SFHS alumna Frances Wang, current broadcaster at NBC 10 in Philadelphia. Frances has great advice for Troubies on balancing commitments, academics, and soaking in the special experience of SF.

On the ages of bright galaxies sim 500 Myr after the Big Bang: insights into star formation activity at z gtrsim 15 with JWST by Lily Whitler et al. on Wednesday 30 November With JWST, new opportunities to study the evolution of galaxies in the early Universe are emerging. Spitzer constraints on rest-optical properties of $zgtrsim7$ galaxies demonstrated the power of using galaxy stellar masses and star formation histories (SFHs) to indirectly infer the cosmic star formation history. However, only the brightest individual $zgtrsim8$ objects could be detected with Spitzer, making it difficult to robustly constrain activity at $zgtrsim10$. Here, we leverage the greatly improved rest-optical sensitivity of JWST at $zgtrsim8$ to constrain the ages of seven UV-bright ($M_{UV}lesssim-19.5$) galaxies selected to lie at $zsim8.5-11$, then investigate implications for $zgtrsim15$ star formation. We infer the properties of individual objects with two spectral energy distribution modelling codes, then infer a distribution of ages for bright $zsim8.5-11$ galaxies. We find a median age of $sim20$ Myr, younger than that inferred at $zsim7$ with a similar analysis, consistent with an evolution towards larger specific star formation rates at early times. The age distribution suggests that only $sim3$ percent of bright $zsim8.5-11$ galaxies would be similarly luminous at $zgtrsim15$, implying that the number density of bright galaxies declines by at least an order of magnitude between $zsim8.5-11$ and $zsim15$. This evolution is challenging to reconcile with some early JWST results suggesting the abundance of bright galaxies does not significantly decrease towards very early times, but we suggest this tension may be eased if young stellar populations form on top of older stellar components, or if bright $zsim15$ galaxies are observed during a burst of star formation. arXiv: http://arxiv.org/abs/http://arxiv.org/abs/2208.01599v2

How do you become a full-time investor who owns more than 1,000 doors by the age of 27?According to Adrian Salazar, the secret is having the guts to go out and be different.Adrian started wholesaling SFHs as a freshman in college and closed on his first apartment building as a sophomore. Today, he is Managing Member at Two Ten Management, and he controls $8.8M in multifamily assets.On this episode of the podcast, Adrian joins Garrett and me to explain how the sales skills he developed early on help him succeed as a young real estate entrepreneur.Adrian shares the wholesaling strategies he uses to find off-market deals and describes his approach to building rapport with owners.Listen in for Adrian's advice on putting yourself in the right rooms and learn to take action on YOUR real estate investing goals—no matter how young or old you are!For full episode show notes visit: https://themichaelblank.com/podcasts/session345/

Kristine is a force of nature. An investor in real estate since 1987, she's experience the market ups and downs and changing trends of real estate investing as a career.  With experience, comes a wealth of knowledge, from house hacking, single family home investing and multifamily. While the majority of Kristine's experience is with fix and flips, recently she's moved into Multi-Family, learning the power of the BRRRR. Kristine has properties in San Diego and many many multiples in other cities in the United States, and breaks down proven strategies to select markets and build teams that work!  You don't want to miss this!  Kristine  Instagram: hhttps://www.instagram.com/tenniskris69/ Adobe Group: https://abodegrp.com/ Investories: Tik Tok: https://www.tiktok.com/@investoriespod Instagram: https://www.instagram.com/investoriespod/ Email: investoriespodcast@gmail.com Kyle: Facebook: https://www.facebook.com/yourmultifamilymentor Instagram: https://www.instagram.com/your_multifamily_mentor/?hl=en John:  Instagram: https://www.instagram.com/hoopeezy/?hl=en Airbnb: https://airbnb.com/h/ponderosapinehaus

The recent star formation history of NGC 628 on resolved scales by Maria Lomaeva et al. on Sunday 16 October Star formation histories (SFHs) are integral to our understanding of galaxy evolution. We can study recent SFHs by comparing the star formation rate (SFR) calculated using different tracers, as each probes a different timescale. We aim to calibrate a proxy for the present-day rate of change in SFR, dSFR/dt, which does not require full spectral energy distribution (SED) modeling and depends on as few observables as possible, to guarantee its broad applicability. To achieve this, we create a set of models in CIGALE and define an SFR change diagnostic as the ratio of the SFR averaged over the past 5 and 200 Myr, /, probed by the H$alpha$-FUV colour. We apply / to the nearby spiral NGC 628 and find that its star formation activity has overall been declining in the recent past, with the spiral arms, however, maintaining a higher level of activity. The impact of the spiral arm structure is observed to be stronger on / than on the star formation efficiency (SFE$_text{H$_2$}$). In addition, increasing disk pressure tends to increase recent star formation, and consequently /. We conclude that / is sensitive to the molecular gas content, spiral arm structure, and disk pressure. The / indicator is general and can be used to reconstruct the recent SFH of any star-forming galaxy for which H$alpha$, FUV, and either mid- or far-IR photometry is available, without the need of detailed modeling. arXiv: http://arxiv.org/abs/http://arxiv.org/abs/2210.07118v1

The recent star formation history of NGC 628 on resolved scales by Maria Lomaeva et al. on Sunday 16 October Star formation histories (SFHs) are integral to our understanding of galaxy evolution. We can study recent SFHs by comparing the star formation rate (SFR) calculated using different tracers, as each probes a different timescale. We aim to calibrate a proxy for the present-day rate of change in SFR, dSFR/dt, which does not require full spectral energy distribution (SED) modeling and depends on as few observables as possible, to guarantee its broad applicability. To achieve this, we create a set of models in CIGALE and define an SFR change diagnostic as the ratio of the SFR averaged over the past 5 and 200 Myr, /, probed by the H$alpha$-FUV colour. We apply / to the nearby spiral NGC 628 and find that its star formation activity has overall been declining in the recent past, with the spiral arms, however, maintaining a higher level of activity. The impact of the spiral arm structure is observed to be stronger on / than on the star formation efficiency (SFE$_text{H$_2$}$). In addition, increasing disk pressure tends to increase recent star formation, and consequently /. We conclude that / is sensitive to the molecular gas content, spiral arm structure, and disk pressure. The / indicator is general and can be used to reconstruct the recent SFH of any star-forming galaxy for which H$alpha$, FUV, and either mid- or far-IR photometry is available, without the need of detailed modeling. arXiv: http://arxiv.org/abs/http://arxiv.org/abs/2210.07118v1

Clues to the formation of Liller 1 from modeling its complex star formation history by E. Dalessandro et al. on Wednesday 12 October Liller 1 and Terzan 5 are two massive systems in the Milky-Way bulge hosting populations characterized by significantly different ages ($Delta t>7-8$ Gyr) and metallicities ($Delta$[Fe/H]$sim1$ dex). Their origin is still strongly debated in the literature and all formation scenarios proposed so far require some level of fine-tuning. The detailed star formation histories (SFHs) of these systems may represent an important piece of information to assess their origin. Here we present the first attempt to perform such an analysis for Liller 1. The first key result we find is that Liller 1 has been forming stars over its entire lifetime. More specifically, three broad SF episodes are clearly detected: 1) a dominant one, occurred some 12-13 Gyr ago with a tail extending for up to $sim3$ Gyr, 2) an intermediate burst, between 6 and 9 Gyr ago, 3) and a recent one, occurred between 1 and 3 Gyr ago. The old population contributes to about $70%$ of the total stellar mass and the remaining fraction is almost equally split between the intermediate and young populations. If we take these results at a face value, they would suggest that this system unlikely formed through the merger between an old globular cluster and a Giant Molecular Cloud, as recently proposed. On the contrary, our findings provide further support to the idea that Liller 1 is the surviving relic of a massive primordial structure that contributed to the Galactic bulge formation, similarly to the giant clumps observed in star-forming high-redshift galaxies. arXiv: http://arxiv.org/abs/http://arxiv.org/abs/2210.05694v1

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Molecular Gas Reservoirs in Massive Quiescent Galaxies at mathrm z sim0 7 Linked to Late Time Star Formation by Charity Woodrum et al. on Monday 10 October We explore how the presence of detectable molecular gas depends on the inferred star formation histories (SFHs) in 8 massive, quiescent galaxies at $mathrm{zsim0.7}$. Half of the sample have clear detections of molecular gas, traced by CO(2-1). We find that the molecular gas content is unrelated to the rate of star formation decline prior to the most recent 1 Gyr, suggesting that the gas reservoirs are not leftover from their primary star formation epoch. However, the recent SFHs of CO-detected galaxies demonstrate evidence for secondary bursts of star formation in their last Gyr. The fraction of stellar mass formed in these secondary bursts ranges from $mathrm{f_{burst}approx0.3-6%}$, and ended between $mathrm{t_{endmbox{-}burst}approx0-330~Myr}$ ago. The CO-detected galaxies form a higher fraction of mass in the last Gyr ($mathrm{f_{M_{1Gyr}}=2.6pm1.8%}$) compared to the CO-undetected galaxies ($mathrm{f_{M_{1Gyr}}=0.2pm0.1%}$). The galaxies with gas reservoirs have enhanced late-time star formation, highlighting this as a contributing factor to the observed heterogeneity in the gas reservoirs in high-redshift quiescent galaxies. We find that the amount of gas and star formation driven by these secondary bursts are inconsistent with that expected from dry minor mergers, and instead are likely driven by recently-accreted gas i.e., gas-rich minor mergers. This conclusion would not have been made based on $mathrm{SFR_{UV+IR}}$ measurements alone, highlighting the power of detailed SFH modeling in the interpretation of gas reservoirs. Larger samples are needed to understand the frequency of low-level rejuvenation among quiescent galaxies at intermediate redshifts, and to what extent this drives the diversity of molecular gas reservoirs. arXiv: http://arxiv.org/abs/http://arxiv.org/abs/2210.03832v1

Welcome to Investories Patrick McGrath.  Patrick McGrath talks Seller financing, Buying foreclosures, The joys of deferred maintenance  Why you should listen?  Patrick McGrath, one half of the RentalPropertyCouple has built a real estate career organically, taking advantage of, and creating opportunity after opportunity. In the episode Patrick sets out his blueprint, delving into his mindset, how he got started and how he fosters relationships to grow his portfolio.  Starting with a primary residence bought through foreclosure, Patrick talks the next steps, growing into more SFHs, an apartment building and eventually commercial deals. Mostly through seller financing.  Along the way Patrick sets out his mindset tips, the concept of FIRE (Financial Independence Retire Early) and how to grow relationships. Finally Patrick breaks down how he sets and smashes goals. This is one you don't want to miss.  Patrick McGrath:  The Real Fi Podcast Website; https://linktr.ee/therealfipodcast Instagram; https://www.instagram.com/therealfipodcast/ Investories: Tik Tok: https://www.tiktok.com/@investoriespod Instagram: https://www.instagram.com/investoriespod/ Email: investoriespodcast@gmail.com Kyle: Facebook: https://www.facebook.com/yourmultifamilymentor Instagram: https://www.instagram.com/your_multifamily_mentor/?hl=en John:  Instagram: https://www.instagram.com/hoopeezy/?hl=en Airbnb: https://airbnb.com/h/ponderosapinehaus Transcript Welcome to invest stories, a podcast about real stories, real estate and taking real action. Join hosts, John hoop and Kyle Robertson. As they talk, investing mindset and taking that first step, we all have a story. What's yours. The I podcast. Welcome to investors. I know you're disappointed. It's just me again. Um, but Kyle is actually back, uh, for the next episode. So that's kind of exciting. At least that's something new, right. Um, and I'll throw in a booya, uh, to show my excitement as well. Uh, today we've got, uh, Patrick McGrath. Patrick is, um, one half of the rental couple, uh, on Instagram. And Patrick's really interesting, really interesting journey from, um, from. Not investing at all to, uh, you know, really delving into some of the creative ways to invest and right up to, um, you know, building out RV and boat storage. So there's a real journey there. We talk a lot about kind of people's journey people's stories. And this is, this is one of those episodes, uh, via, uh, helos and foreclosures via seller financing and seller carrybacks. Uh, He goes into some of the goal setting and mindset and, and the techniques around that. And also then what he looks for in a, in an investment, in a property and, and how he kind of figures out how, um, something's gonna work, how you're gonna add appreciation and how you are going to kind of out the back of that, um, refinance to buy the next one. So there's a lot of strategy and techniques in our, in our conversation, in the story. Uh, so really worth a listen and. With that. In fact, before I throw to Patrick and I's interview, I'd really like to go and hit up the, um, the review button and give us a five star if you've done it before. Cool. If not, you know, why not do it and why not do it again? Uh, and also do, please reach out to us on socials, um, at investors' pod. Uh, on, uh, Tokin on Instagram and, uh, without further ado here is Patrick. Welcome to investors, Patrick McGrath. Uh, AKA, I'm gonna say AKA, um, at rental property couples, or at least, uh, half of rental property. Couple Patrick. Welcome. Thanks, man. I am looking forward to having an awesome real estate conversation with you today. I know we're on the opposite ends of the country, but we're here together today at the same time, same place to hopefully inspire and, uh, teach some people some stuff. So let's get into it, man. If we can impart one piece of advice, one, one action, then Hey, we did our jobs. That's right. And Patrick's over in Mary, I'm still in San Diego. Uh, they, they haven't kicked me out yet, so that's always, always good. So, um, super interesting. Um, Patrick hosts, a podcast. You wanna give you a podcast, a quick, uh, plug. Yeah, it's called the real fi podcast. You can find us on Instagram, um, the real fi podcast or the real fi podcast.com. Sorry, the real fi.com still get that mixed up. But yeah,  and, and like investors, um, it's, it's all about real conversations with real investors and, and all that good stuff, so well worth checking out. And, and speaking of which I, I really want to get, and I've followed your social media journey, uh, yourself and your wife, Danielle. One thing that I really like is, um, that authenticity in terms of the voice and what you do and how you're living it and kind of how you, um, quit your W2 and all that good stuff. So can you give us kind of the, the intro, like the, how you've got to where you are today kind of thing. Yeah, of course. Um, so we started. Just like most investors start, which was buying our primary residents. Um, you know, most people that's, their first investment is their first primary residence. But what we did is we knew that that place wasn't gonna be our forever place. So we bought a foreclosure as our first property that we were gonna move into that needed a little bit of work. So I knew that we could. Add some value and make it worth more money down the road. So then we could use. To invest in more properties. So that's basically what we did is we, we bought a foreclosure. We spent like three or four years kind of fixing it up, doing bathrooms, doing the kitchen, replacing the flooring. And we, uh, we were able to get a home equity line of credit on that house. So we took out a home equity line of credit. We got $45,000 that I believe, and that's what we used to go out there and buy our first investment property. And. At the time, this is like 2016, 2017. When this is going on, there's a lot of foreclosures available, um, on the market. And we were able to find a house right down the street from our house. It was like eight or nine, 10 houses down. And that was really the first property, um, that we bought. It was a single family property, uh, three or four bedrooms, one and a half baths. And we pick, we were able to pick that up for $175,000. We used that $45,000 HeLOCK that we had for the 15% down payment. And then we used whatever money was left over. Maxed out credit cards, basically like redoing the entire place, redoing the hardwood floors, new windows, new roof, new bathrooms, you know, granite countertops, tile, back splashes, new appliances, all this stuff, you know, we're like our, our first rental is gonna be amazing. And we basically made our first investment. Way nicer than the house that we lived in, like 10 houses down.  that's a true investor right there.  right. Yeah. So, uh, my wife, Danielle, who's the other half of the rental property couple, she was like, Hey, uh, this place is way nicer than our house. How about we just move into the new property and rent out our house. So that's kind of how it really started. Like we bought. Spent way too much money, fixing it up and made it too nice. So we moved into that one, rented out our primary residence, which was the plan all along. And, uh, that's kind of how we got into our first rental property and kind of figured it out like, Hey, when the rent check started coming in, We were like, holy crap, this actually works. Like someone's paying us to live in a property that we own, and we're really not having any issues. Like this is amazing. We need to continue to do this. Um, so fast forward, we're living in that house for like a year and we were just ready to move. So I wanted to move to an area that had small multi-families and there was an area that a couple of our friends lived in about an hour north. Um, that was really nice and it had small multi-families. So we took out another home equity line of credit on our. Now primary, which was that first investment property, we've got $85,000 and we used that to buy our new primary. And then once we moved up here, we used the remaining amount to put a down payment on our first Plex. So that didn't happen until 2019, so 2019. So two years from the time we bought our first investment property to we bought our next investment property, which was a triple. And we got that one for $204,000. And we spent me and her like painting, ripping out carpet, redoing the floors, putting new vanities, lights, all of that stuff in, um, we spent about $15,000 over the next four months. Just redoing all the units. Mm-hmm  tenants were moving now. They were paying, I think they were supposed to be paying seven 50 a month. These are for two bedroom, one baths. And we got new tenants in there for 1200 for all three units. And, um, six months later, it appraised for 350,000. So we were, we were all in for 2 25 and it appraised for 350,000 and we did a cash out refinance. We got our $65,000 down payment, our 10,000 in closing and our 15,000, um, money that we put in there back plus an additional 10,000. And, uh, we used that to go and buy our next one, which was from the same seller. So, so you forged a relationship with the seller to. They had multiple, uh, li oh, a lot of inventory that they could then pass on. Yeah. So, um, basically when we moved up here, I found an ad on Craigslist for a guy that was selling 13 units, like five properties mm-hmm  and, um, Basically, he had two left that didn't sell. When he post, when he had all these investors, the Plex was one of them and there was a fourplex down the street and the Plex had been on the market for like over a year. It was listed for two 50, but I know that I had his email from when I emailed him on Craigslist. So what I did was I kept emailing them every month. Like, Hey, I see your property still on the market. Would you like to sit down and have coffee? Mm-hmm . Hey, your property's still in the market. We'd like to have coffee. So like five months go by. And he finally says, yes, I'll sit down with you and have coffee. And we met at a Starbucks and we ended up having like an hour long conversation, just older gentleman. He used to own two car dealerships. And basically I was like, look, I want to be sitting where you're at one day. Like, but. Your property's been on the market for over a year. It's obviously not. We two 50 I'm at like 200, like let's try to make something happen. And he came back at two 10, we did the inspection and there was a, some stuff wrong with it. And I said, basically, look, Hey, I'll buy it at the pro at the two 10. If you give me some seller help, but I'll also buy your other property. Once my refinance goes through so you can sell both of them to me. Amazing. You just have to wait a little bit. So that's kind of how we were able to get the other one as well. So we packaged them up together. As soon as the refinance went through, we were able to buy the other property. He a he's actually holding $85,000, um, a three year note on that one for us. So we were able to bring less money to the table. And that was kind of our, our. Like seller financing opportunity kind of thing. Um, and that basically got us to, I think that's like nine at this point. And then we bought a single family during the pandemic. Um, and we got, we got that. So here we are now we've got our first primary residence that we bought that we turned into a rental, the first investment property that we bought, that we turned into a rental. Another single family, a Plex and a quadplex. So we're like mini moguls, you know, we have like nine or 10 units. Um, and I was still working at W2 at the time. So I was a regional sales manager for a construction elevator company where I was gone, like at least a week, a month. Mm-hmm  if not, you know, a week and a half, two weeks. So we're doing all these renovations, we're managing these properties while I'm traveling, you know, and my wife's at home. and we're able to do this. So anyone out there who says they don't have enough time, like I was basically gone half the year and still able to make this happen, you know? Um, so my wife is getting her haircut and the, the owner of the salon was like, Hey, we're moving. Um, just wanted to let you know, she's like why she's like, well, the woman that owns this building is thinking about selling it mm-hmm  and it was like, uh, salon in the bottom three apartments up top, and then another building that has six apartments. And my wife got home, you know, went to dinner. She's like, yeah, Pam's moving. They're the thinking about selling the building? I was like, Did you ask her for a number like, meanwhile, I have no idea how to buy commercial property.  I just know that like I wanted to get into something like that. And here's an, here's like an off market opportunity. Let's let's figure out what we can do here. Um, so need, let's just say she gotten her number. We went and toward the property and, um, She really liked us again. I told her like, Hey, look, I wanna be in your shoes one day. Like I'm, I'm local to the area. Like let's make this, let's make this work. And we were able to make that work. That was 10 units. We were able to get for 850,000. Wow. Um, at the time it was renting for the total rents. It was bringing in was 7,200 a month. And that was may. 2021. So here we are, September, 2022. It now brings in four, uh, 14,275. So almost doubled, um, the income of the property in a little more than a year. Um, so I mean, but we, we turned over almost all the tenants we've spent probably close to $125,000 fixing up all of the units, changing out mm-hmm. Everything, you know? Um, but we, so the people are like, well, how did you get the money to buy an $850,000 property? So what we did is we sold. Our first two investment properties. We sold our first two single family properties that we had, and we did, what's called a 10 31 exchange where we were able to take the profits, you know, tax free, basically tax deferred. And use that for the down payment on our, uh, on this 10 unit apartment building. And then we did a cash out refinance on the four unit to help get some more money to do the renovations and all of that. So this, this whole time, we're just like recycling all of these funds over and over again. We're using the same money over and over again. The snowball's just getting a little bigger. Um, and, and that's the power of, um, of appreciation, right. And forcing that appreciation. So by, in making those investments and, and kind of not just turning over tenants, but providing better quality accommodation, you are pushing the value and therefore you can. Get another line of credit against it, or you can increase that line of credit against a, a property. I do wanna, I do wanna unpack a couple of things cuz that's amazing. It's such a, such an amazing journey and the, the steps to go through. And I feel like it's, it's uh, expressed kind of version through real estate that some people take years and years to go through all those different kind of classes and, and. Products. I think the first one is you, you said you bought your first place with a, uh, it was a foreclosure. So for a lot of people listening, a foreclosure is probably terrifying. Um,  as a proposition to acquire what were the steps to get educated and kind of who convinced who, in terms of making that first step? I know my wife's just super cautious, so she would be terrified by a foreclosure. Yeah. So at the time there was so many bank foreclosures that the bank was, the bank was actually, you know, fixing them up a little bit. So it had like a new H V a C, it had new carpet. It wasn't like new pain or anything, but it really wasn't an. Shabby shape, you know? Um, but I just, we, we were living in an apartment at the time and we weren't even married. And I told, you know, my wife at the time LA or my girlfriend at the time, who's now my wife, like, Hey, we really can't afford anything else. You know, like, this is what we can afford, but we, we can make it nice. Um, with. With the full intention down the road, that we would turn it into a rental property. And I was reading a lot of books at the time. And basically, like I said, between that was 2013. We didn't buy our first rental property until 2017. So almost four years it went by. So during this time I'm like looking at a ton of properties, doing a ton of research and I'm like, look, I think we can do this. And I basically just said, we can do let's try it. If it doesn't work. You know, then we just, we won't do it again. You know, we'll, we'll caught our losses and we just won't, we won't try it out again. And that first property, you know, we basically made like a hundred thousand dollars in nine months in equity and we were collecting rent checks and things weren't going wrong. And that's kind of how it really started for us was like, look, just gimme a shot. Um, let let's just try this out. And it worked and then the next one and the next one and the next one and the next one. And, um, it's kind of hard, you know, to not believe when you start having thousands of dollars coming in and then tens of thousands of dollars coming in. You're like, okay, well this is working. No, I think, I think that's, that's really interesting. Uh, one of the other things you, you talked about, and I'm, I'm kind of jumping around here, but, um, in terms of the, you mentioned a seller carrying a. And for I'm, I'm currently doing a seller financing course, and it's fascinating. And all the options it's like going into the ma or breaking out the matrix, all these options you didn't even know existed are there and exactly being played with. What does that mean? And how does that work with say traditional financing models? So if they were carrying a percentage of the financing, how does that work with the rest of the financing for that asset? Yeah. So it really depends on how you, how you end up doing it. So the way that we've typically done it is we call it a seller. Carryback where the seller is carrying part of the down payment. So they hold, you know, 10, 15, 20%, and then the bank will finance the rest of it. Um, that's the way that we've been able to do it. A lot of people think, um, A lot of people think that seller financing is where like the seller's holding 90 or a hundred percent of the property. And they're like, well, why would they do that? Or I need to find a property that, you know, they don't have any.  um, any note on the property, like no loan or anything. So what we've been able to do is we found a bank that will allow the seller to carry that equity because the bank, they, they only wanna loan 70, 75, 80% of the value. And typically you are the one putting that 15, 20, 20 5% down to get him to that number. It doesn't matter really where it really comes from especially commercial loans, as long as the bank is only lending on that 70, 70, 80%. So that's what we were able to do and tip. And all of ours are like three year terms. So they're 5% interest only, you know, 36 month balloons. And the plan is for us to. Get in the property, fix up the property, increase the rents, go back to the bank and refinance. And when we refinance we'll pay off, you know, that seller note of that 20 or 25%. And that's the bit we were talking about, um, which is that appreciation of the, the asset performance rather than just strictly looking at it is it looks nicer. So therefore it's worth more. It's it's about the fundamentals of how much it, it earns and how much it costs to maintain those kind of elements. Right? Exactly. Especially when we're talking five plus unit properties, cuz they're based on the net operating income. When you're talking about single family. Duplex Plex quadplex they're they're based on what the comps are in the market around it. Just like a single family. When you get into these five plus unit properties, it's all about how much money the property is producing. So if you can lower expenses and increase your revenue, then you can drastically increase the value of the property that someone will pay for it. And that the bank will loan you. No. That's awesome. Thank you so much. When, when you look at a property, what do, how does that work? What's your kind of, what are the reps or what are the steps you go through when you walk through a property? What do you look for? Yes. Um, so what I look for is I look for ways that I can increase, um, value, whether that is adding a bedroom, whether that is changing. The kitchen out, um, the flooring, the lighting, all of that. But I, I also look for like the major things, um, and really just look at how the property, um, can be increased, like the efficiency of the property. Um, my biggest thing is I want properties that need work that have had deferred maintenance, um, that have undermarket rents. Um, That have headaches. I want to buy headaches from people because if I'm buying someone else's headache, that means that I'm getting a discount on the property for dealing with those headaches and taking those problems away from them. Um, so I'm not buying turnkey properties. I'm not buying properties that have been. Renovated. I'm not buying properties where tenants are paying market rents. That's some people's strategies, but that's not mine. I want to be able to be the one to force the appreciation in these properties. So nine times outta 10, when I'm buying a property, it's just barely meeting the banks. Requirements, like just barely. They're like, okay, we'll lend on you. We'll lend this to you. Um, those are the types of properties that, that I want. And then I can come in and paint the building, you know, replace the windows, replace the flooring, replace the lighting, replace the tenants, you know, fix up the parking lot, fix up the landscaping and then. You know, transform this asset that somebody mismanaged and make it something really, really nice. And my mine and my wife's thing is we need to make each and every unit to where we would live in it. If I wouldn't live in it, I'm not renting it to somebody. And that that's our standard. And, um, Every single unit that we've done. Um, I would live in if something ever happened where we would, we were forced out of our house or something like that. I would happily move into any one of my properties and any one of the units there and be next to the tenants that we have and be happy with the accommodations. And that's the standard that I have. And I think that's, what's made us success. I really like that as a, so I often make a note about, um, you know, questions and I always put it as around a philosophy, like what's your investing philosophy or what's, what do you look for? That's hence that question. And I think that's a great, um, take on it, which is somewhere I'd live myself is, is kind of fair, right? Yeah. So we have. I basically have like a little motto or like a mission statement and it's to provide safe quality, affordable housing for families to be able to plant their roots. That's, that's what it is. Um, and as long as we make sure that we're living by that mission statement, um, then that will be the guiding light for us to make sure that we're doing the right things. No, I, I think that's, that's great. Um, I really like that you talked, um, briefly about, um, quitting your quitting, your job, quitting your W2, which is kind of, uh, I think most starting investors or most investors see that as, as a goal, um, kind of as a, as a bit of a yard stick and Hey, that's something to work towards and, and really, um, I've heard you on a few interviews, talk around the fire movement and kind of retirement and what that looks like. Can you talk me through kind of your approach to how you transition from your W2 and then kind of what the, what the movement means to you or what that kind of, uh, stepping away looked like? Yeah, so, um, it wa it wasn. A hundred percent planned. Like we, my company at the time, we decided to just kind of go our separate ways. Um, it was a week before we bought the 10 unit apartment building  so a week before we were closing on like the biggest deal we've ever done, um, we went our separate ways, which. As I look back at it was, was very scary, but it was also like the best thing that's ever happened, you know? Um, at the time I think we were bringing in roughly like $5,000 a month in cash flow, um, which we could cover like all, all the stuff that I was paying for, you know, but we weren't. Rich or really living financially free. It could just cover. But the lucky thing is I did have a large 401k that I, I had, I did have, I was saving 25% of all of my earned income for like wow. The past couple years. And, um, I did have some, some investments in like some crypto and some NFTs and different things like that. So we, we had a nice, like, Safety net behind us. Um, so that, that was really the key, but the, the fire movement, um, financial independence retire early. We were inspired by that because I didn't, I don't wanna work forever. You know, I didn't wanna make anybody else a ton of money. Like, and that's what I was doing. I mean, I was closing, you know, multimillion dollar deals. I, in five years I probably brought. Over 22 million worth of business, um, for this, for this company, you know, and I was doing okay, but I, I could have been doing a lot better, you know, and just since I left, like, we have basically tripled the amount of real estate that we've bought in like the last year and a half, just because this is all I'm focused on every single day, you know? And I. That's really, the biggest thing is, is when you're passionate about it and you have the freedom and you have to do it like mm-hmm , I, I, I did, I didn't wanna go back and work at another job, you know, especially making less money. Um, so we, it was kind of like, I had to go out there and, and make it happen. And luckily, you know, we have, um, but it's, it's all the preparation, you know, it is that it's those five years of grinding. It's that five years of being away, you know, almost half the year saving 25% of your income investing. Every penny that you have. Into buying rental properties and building your small portfolio and getting that cash flow and, you know, doing the right things and recycling your money over and over and over again, um, that leads you to be able to do that. So it's, it's all the hard work leading up to it. And then even when you go after it, you still have even more hard work ahead of you, but at least you're doing it for yourself.  you know, and I think that's the biggest thing behind the movement for me is, um, I get to choose what I do every day. Um, and I'm passionate about it. So I'm working harder than ever. No, I, I love that. And I think, um, I, I echo that that's, that's my goal. I, I still work at W2. Um, thankfully I'm at home and I don't travel. It's kind of nice. It's kind of cush, but then equally, then it gets you into a comfort zone and you'll still, um, you'll still kind of subject to the, what I call the W2, drip. The, the feed of a little bit of money, a little bit of money, but, um, yeah, and, and that's something, Kyle, uh, my co-host, uh, has talked to a lot, which is having that time to spend it on, on the stuff you wanna spend it on. Right. And what's the value of, of kind of money coming in from a job. If you are then not able to manage kind of your time to, to do the real estate stuff. That's really interesting. Exactly. And the having the conversations. Yeah. I mean, and, and being able to have the conversations like every single day, like I'm on the phone every day, talking to other investors, other business owners, um, just meeting all the contractors, having the conversations with them, just like always being around my properties, working on them, meeting with everybody where I'm building relationships with with everybody else. Um, and that's, and that's. What takes you to that next level? It's real estate is it's, it's a people business. Mm-hmm, , it's not, it's not an asset business. I mean, you buy assets, but you know, people are your customers and without the people, you literally have no business. So you need to become a people person build great relationships. And that's really what sets you. Having the time, freedom to be able to build those relationships, meet those people. When you need to be able to go to lunches, go to real estate meetups, you know, be able to go out there and shake hands and press skin. That's that's really what gets you to the next level. I love that. And yeah, absolutely. That's a common thread that we get, um, on the show, which is, is all about people. Go, go to your local real estate meetup. If you don't have one set one up and invite people. And if three people show up, you know what? You, you've made three really strong contacts and. Talk, you could nerd out on real estate. Right. So that's, that's really interesting. Um, one, one of the things I, I really wanna get your, your take on is, and, and kind of your W2, um, happenstance of, of leaving your W2 and, and kind of doing this full time is, is a bit of a, a, a driver for this, but, um, how do you set goals or do you set goals or are you just kind of open to things? Do you have that kind of, um, mentality or. Yes. So basically I set quarterly goals and a yearly goals, and I have them broken down. I have a, and it goes out for a three year plan. So I have a three year plan. And then in that three year plan, it is broken into quarters. So the quarters for this year, and then it'll have the goals for next year, the goals for the following year kind of broken out. So I will basically say. For the first quarter of this, of this year, you know, I wanted to close the six unit apartment building that I found off market. And, and then I have a rent goal. Like how much, how much rent, how much total rent am I bringing in? How much net are we bringing in? Am I trying to start, um, doing off market marketing for wholesaling, you know, and I just, I have it all broken down in. Three month chunks. And then I have my overall goal for the year and I can work backwards from that. And then I have my two year goal and my three year goal. Um, but I, I don't have daily and weekly goals. Sometimes, I think you can get too caught up, you know, in, in having these daily, weekly goals. And if you don't hit, 'em, you feel like you're not you're, you're not achieving what you, what you want. So I kind of make 'em a little broader and then I have an overall goal, but you, you have to have goals. Um, To really be able to track your metrics and see what you're doing. And I know if I'm not putting in enough work, um, and accomplishing those quarterly goals, I'm not gonna get anywhere close to those yearly goals or those two or three year goals. So yeah, you, you, you have to have a written down plan. I mean, they say, um, What is it? If you actually write a goal down, then you're ahead of like 90% of the people out there. So just writing it out and having like it sitting there and going over it every couple months is, is great. And, uh, we do have a free, uh, a goal sheet. Um, that you can get at in our link on, um, on our Instagram. So, and we'll post the, the links in the, in the show notes for this. I think that's really interesting. Yeah. I, I struggled that for a long time taking a really high level high concept, like a number or a goal, or I want this many units. And then what I wasn't doing was taking that time and I call it strategic time and I try and calve some out every week to just think like, so how do okay. That's where I want get to, how do I break that down into, I, I like the quarterly idea. I'm gonna, I'm gonna definitely try that out. Yeah. Because it's like, okay, well you want to hit $10,000 a month and you have two rental properties and they're bringing in $300 a door. So you're making 600 a month of two rental properties. Great. Well, you need to, you know, times that by 15 to get your 10, you know, so you need to buy 15 more properties. All right. Well, if you're buying 15 more properties, you have to break that down and you go, all right, well, would it be faster if I bought a quadplex would it be faster if I bought a 10 unit? How am I gonna get this money? So you gotta, you got to break that 10,000 down and go, all right, I need this many doors at this purchase price. That's gonna give me this much per door. And then you can, once you have that number in your head, you start working backwards and then you can really put a plan in place or Hey, Uh, is this rental better, long term or is it better as a midterm or an Airbnb? If I did, instead of buying 15 properties, I could buy five properties and do Airbnb and hit that same number. That sounds more attainable in my three years than buying 15 long term rentals. So, and I, I like what you said, there's just giving yourself the time to like, really think about those goals. And how you're gonna accomplish them. And then it's telling people what they are like, you, you've gotta tell your, your friends, your real estate people, your, you know, anyone has to know what your goals are, because those are the people that are ultimately gonna be able to help you achieve those goals. And I'm gonna add to that. You need to have the, the skin to, to allow them to. Scoff or laugh, or, and, and as you said earlier, a lot of people don't set goals or a lot of people wouldn't write them down. And so then therefore just by doing that, you're ahead. But then by taking the action, people are gonna look at you. Very strangely. I moved to the us, I bought a house people before I bought a house were like, how are you gonna buy a house? I bought, I bought a short term rental, how are you gonna buy a short term rental? So all these, all these things that people are gonna kind of not laugh at you, but have disbelief until you start doing them. And by taking that action and building that kind of cadence of, of actions. And, um, yeah, that, that was the biggest change for me was having the time, like taking time to figure out, well, how do you get from a to B and not. I've written a goal that's enough. And I'll just throw it on a whiteboard or put it in my notes or calendar or whatever. So that's, that's really interesting. Yeah. I mean, so, so what happens when you're out there at these meetups, when you're putting yourself out there and then all of a sudden you get the partnership opportunity of a lifetime. You have no money, you have a guy that has tons of money, but doesn't have any time ask you what your goals are and how you're gonna achieve them. And then you're like, oh, well, you know, I thought. This, but if you're like, bam, bam, bam, bam, bam. Here's what I need. Here's what I'm going after. Here's my plan. Like you need to be prepared. You never know when that opportunity is gonna come and you need to be able to strike. So if you really want to achieve financial freedom, financial independence become a successful real estate investor. You need to know exactly. Your market, you need to know exactly what you want. You need to know exactly how to get there. And when you can articulate to people, you're gonna find someone that can help you. A partner, finance person, someone who's got deals, it's a wholesaler. So you're gonna find people that are gonna be able to help you. Um, but if you don't know what you want, then you're never gonna get. Amazing. No, I, I like that a lot. So I'm gonna put you on, on the spot a little bit. Um, so I I'd really like to get kind of either your best piece of advice you've, you've got, uh, in your career so far or the biggest lesson you've learned. So I'll give you the choice of those two. Okay. Um, Yeah. So the I'll do both of them. Um, the biggest lesson, the biggest lesson that I've learned is really to believe in yourself. Like you you've gotta believe in yourself. Um, and that doesn't mean just like, oh, I know I can do it. That means you gotta put in the work to believe in yourself. You have to know. Everything that you need to know to be the best at what you want to do. And that makes you be able to believe in yourself when you have the doubters, when you have your friends, like, how are you gonna do that? When you have your family members telling you that you're crazy, they have no right to give you advice when they haven't done what you're trying to do. And you need to be knowledgeable enough to accept that, you know, what's. and that is, that's what true believing in yourself is mm-hmm, , it's being able to accept, you know, that skepticism and all of that stuff from people who aren't doing anything. And know that you can push forward and, and go for it. So that would be, you know, um, the biggest lesson learned is just believing in yourself because I've turned down things, listening to other people that I knew I was right on and it costs me a ton. Um, so there's that, and then the. The other thing is really what my hat says right here. Decide, commit, take action. That means, you know, if, if you need to do, if you wanna be financially free, you need to decide to be financially free. Mm-hmm  you need to commit to doing it, which is then taking the action. That's putting a budget in place. That's putting your goals in place. That's reading your books, listening to your podcast. That's taking action. Whether that. Going to a meetup, whether that's calling lenders. Uh, I, I don't, I can't qualify for a house. Okay. Well, have you, have you talked to a lender yet? No. Okay. Well then you don't know if you actually can, you're just putting a roadblock in front of you, like decide, commit, take action. Like you're gonna get a bunch of no's, but someone's gonna give you a yes. And that's really, what's gonna propel you past everybody else. Who's not doing that. So yeah, those would be those, the, the two, the two things right there. I, I really like that. And I love the fact that that. Like pick up the phone, speak to a lender, but don't speak to. Speak to 10. See what 10 say same with a, with a, a real estate agent, speak to 10 agents and, and get a kind of take. And just by having, getting those reps in, then it becomes like muscle memory. So you pick up a phone. I, I pick up a phone to a realtor now across the country and I can have a, a broad conversation really easily. The first one, I was like, you know, stuttering on the phone, like, hi, nice to meet you, blah, blah, blah, and all that stuff. And now I can have a very pinpoint, Hey, this is who I am. This is where I'm at. I'm not Warren buffet. , but this is where I'm going. And again, linking back in the goals, this is my, this is kind of my north star and where I wanna get to, um, you can start having those, those really strong conversations. Uh, so exactly I did have one question that I should have asked you a little bit earlier. And so it's a little bit out of, um, out of kilter in terms of how you find deals. What do you, um, you say off market deals, for instance, how, how do you find. Yeah. So for everyone out there, who's heard of this little podcast called the bigger pockets podcast.  um, I've heard of it. I, I was, uh, I was listening to that and they were talking about this app called deal machine. And you could download this app and drive for dollars. Um, and they'll send out postcards to people. And I was like, All right. Cool. I'll download the app. It's $40. And, uh, they tell you how to buy a list. So you go on the list source, you plug in your parameters for your area. You buy this list for, I don't know, a hundred, 200 bucks. You'll upload it. And then you start sending people postcards. So I was like, okay, that's what I'll do. So that's what I did. I spent $200 on the list, 40 bucks to get the app and, uh, started sending out mailers to people in my area. And, uh, I spent roughly about $2,000 and I was able to get, uh, a six unit building for $430,000. The seller is holding 20%, which is 85,000 for three years. And it's gonna be worth about $900,000 when I'm done and it's gonna cash flow four grand a month. So that was the best $2,000 I ever spent. . Same thing. Another guy reached out to me last year, and this is the first time I'm telling this. Um, I've been working on this other deal for about a year and a half now, and it's a seven unit property and I own this guy's two. The guy that I bought my, my Plex and my quadplex from this is the guy that he bought the stuff from. So this guy used to own like a going up the chain. Yeah. This guy used to own like 150 properties in my area. And this is his last property. This is like his baby. Um, And, uh, we, I, he has the contract in hand. He, it should be signed tomorrow. Congratulations. And that will give us another seven units. Um, and he is also going to hold 20% down. So we're gonna get a $750,000 property for $40,000 out of pocket. Um, And that's from building the relationships that's sending the postcards like, and I didn't do anything special. I didn't do handwritten letters. I didn't do anything. I literally went into the app, uploaded the addresses. Did I changed my name and phone number and email address on the standard. Is this your property? I'll send, let me send you a free offer or whatever. I didn't do anything. And. You know, when I did, I decided I committed to doing it and I just started sending the stuff I want you, I got some deals out of it. I want you to say those numbers one more time, cuz that is powerful. Yeah. So $750,000, seven unit property, which will be the most money I've ever spent per unit on a deal. But he's going to hold 150,000, which is 20%. For three years at 5% interest. Um, so it's gonna be $210 a month interest, $290 principle. Um, and I'm gonna need to bring $37,500 out of pocket to get into a three quarter of a million dollar property. Wow. So. Yeah, you can do it. I'm no one special, like, literally I'm asking, just like you said about like calling your realtors and everything. I just ask everybody if they're, if they be willing to hold. 20%. I'm not asking them to hold 80%. I'm just asking 'em to hold 20% like, Hey, you know, the property, um, needs a little bit of work. Look, would you be willing to hold like 15, 20% just because I'm gonna need that. I'm gonna need that money to fix up the property, you know, take care of some of the delayed maintenance and other things like that. And then when I refinance it, I'll just pay you back in, you know, two years, three years before if I can. That's what I always say before. If I can. And. What's the worst they can say is no. All right. So you, you gotta buy it like everybody else anyways, like just ask . I love it. No, that's awesome. Um, the, I guess the, kind of the next question I have is this is really looking kind of to the, to the future looking forward, like, what's next? What's your, what's your target? Are you changing assets? Anything? Yeah. So, um, we've got some exciting things going on. We're looking at some commercial properties, um, and then I also have a development, uh, deal going on. So we are currently under contract for 16 and a half acres in Virginia. Wow. To develop a RV and boat storage facility now. A year ago had to me thinking about I could a year and a half ago, I didn't even know how I was gonna buy a 10 year department building. And now I'm talking about developing, you know, 16 acres into an RV boat storage facility, um, which is crazy. Um, but you know, we had a guy on the podcast and he was talking about it and I've always wanted to get into storage, you know, uh, storage units, mm-hmm , um, or storage. You're you're basically just, you know, renting a box or renting a piece of dirt. Um, so there's no electricity, there's no toilets. There's no nothing like no evictions, all that. And uh, this guy brought the deal to me and I really, I liked the numbers. The numbers were insane. So I said, Hey, let's try. So we put the land under contract and it is under contract with a condition that the city has to approve what we want to do, which we've already went and kind of got like the handshake agreements from everybody, but it has to go through the proper process. So it's gonna take, um, three to six months to go through the conditional use permit process. Um, I actually have. You know, I don't think you could see it, but I got the, we, we got the updated engineering today. Um, so it's gonna be 328 spaces. Um, if you do some quick math, we should be able to rent it for between 125 and $150 a space. So that brings us anywhere from. Roughly 30 to $45,000 a month gross. Um, our expenses should be a little more than 8,000, so we're gonna net anywhere between 25 and $35,000, um, a month, one less. And we, and we're a majority owner. Um, so right now we have, we own 85% of this. So this is gonna be life changing. Mm-hmm  like the number, my goal was $30,000 a month as like my first, it was 10,000, you know, that was like our financial independence number. You know, everybody kind of has that $10,000 a month. That'll change your life. Um, and then it was 30. Was the next goal and this will put us like surpassed that no problem. Um, and that was in like a year and a half, which is crazy. Crazy. Yeah. But, um, I, I have no idea how to run a storage facility. I've never developed anything before. Um, we're just going for it, you know? We have, I have a partner who lives down there and knows a bunch of contractors and he's part of the deal and he's doing all that stuff and we're doing the finance part and I'm figuring it out, you know, love it. So I did, if you've got time, I have one more question. I got, yeah, I got plenty of time. Awesome. So you started in 2013, very different market. I, I actually started in 2013 as well with, with just casually buying a property at the, at the lower end of the market. Right. So, um, mm-hmm, , you know, I've not forced appreciation. I've just had kind of rocket ship appreciation based on buying a, a cheap property in a good area. That's, that's gone up in value thinking about today and the kind of market conditions. What, what would you do now? What would you do differently? Uh, That's tough. Um, I'd tell you what I would probably, I, I turned down so many deals during like 2000 16, 17, 18 over like $5,000, like five grand, like $160,000 houses that were just selling for like 3 5400, you know, last summer. Um, but. I, I don't think I'd do anything differently really, cuz it, it got me to where I am today, you know, and maybe if, if I bought a bunch more single families back then maybe that I would've got stuck in the single family game and not went to small multifamily or moved or bought this apartment building and kind of got to where I am today. So when I look back on it, I look back and go that that's what got me here. You know, I, I can tell you what I'm to change my question. I, I guess I'd add, what would you, if you were starting out today, what would you do? And I guess that might be the same answer, but oh, if, if I was starting out today, what would I do? Um, yeah, a hundred percent. I would house hack a four year unit, a Plex or a fourplex. I would house hack. I would do that for two or three years. When I was young, you know, if, if, if I was starting off again, I didn't even know that was an option back then. But I would've been able to convince my wife when we were like 22, 23. And within three years you could have, you know, six to 12 units doing it with a duplex or a quadplex. And that would set you up for the rest of your life, you know, to be 26, 27 with 12 rentals, and then go buy that dream house. Like that would be the one thing that, um, I would do differently just if I'm young, like, and you're an investor, like skip the single family. Buy a small multifamily, it's the same exact process. You're gonna make more cash flow. Um, if that's what you, if you really want to build like a solid foundation, um, which I look at long term rental assets as kind of like the foundation to real estate. And then once you build that solid foundation, then you can go do some of those higher risk, higher return things like short term rentals, midterm rentals, furnished finders, vacation rental. Development storage, you know, commercial buildings, all this other stuff that's out there, you know, get your long term, you know, foundation of consistent monthly rentals in, and then you can go do some of this more creative, you know, higher return stuff. Mm-hmm . No. That's awesome. Um, what's the best way people can connect with you? I think we talked about Instagram, but feel free to, uh, to put the socials out there as well. Yeah. So the, if anyone wants to reach out, um, you can reach out at, um, at rental property, couple. Um, so I'm the one that runs the page. So you can reach out to us at rental property. Couple, you can do, uh, the RFI podcast on Instagram, uh, rental property, couple on TikTok, all of that. Or you can find me on Facebook at Patrick Ryan. Um, we've got a meetup. So if you're in the Maryland area, we just started to meet up last month. Um, So it's in Northern Maryland, it's called ails and assets. You can go on Facebook and just type in ails and assets, um, west mins or carro county meetup, and come join us at the meetup man. And, uh, yeah, you can find me at all different places. I respond to everybody just don't, you know, Asked me to invest in like your crypto scheme or anything like that. But, uh, , that was my next question. I'm not gonna do that, but, uh, yeah, reach out, reach out to me on there and, uh, I'm happy to help anybody. Patrick, thank you so much for today. It's it seemed to fly by. So, uh, thank you so much and it's, uh, it's a great conversation, so much great, uh, advice and content and, and kind of next, um, Next kind of things to think about and get the brain worrying. So hopefully our audience loved it. Um, if you did leave, love it, you know, hit us up  or he is on the socials and, uh, we'll be back next week. Patrick. Thank you. Thank you guys. And make sure to go lead this podcast to review on apple or Spotify or any of them. Five stars. Good, great point. I, I don't say that enough. So, uh, thanks, Patrick. And we'll be back. Thank you for listening to the investor podcast, we all have a story. What's yours, the investor's podcast.

GRUMPY: a simple framework for realistic forward-modelling of dwarf galaxies by Andrey Kravtsov et al. on Sunday 11 September We present a simple regulator-type framework designed specifically for modelling formation of dwarf galaxies. Despite its simplicity, when coupled with realistic mass accretion histories of haloes from simulations and reasonable choices for model parameter values, the framework can reproduce a remarkably broad range of observed properties of dwarf galaxies over seven orders of magnitude in stellar mass. In particular, we show that the model can simultaneously match observational constraints on the stellar mass--halo mass relation, as well as observed relations between stellar mass and gas phase and stellar metallicities, gas mass, size, and star formation rate, as well as general form and diversity of star formation histories (SFHs) of observed dwarf galaxies. The model can thus be used to predict photometric properties of dwarf galaxies hosted by dark matter haloes in $N$-body simulations, such as colors, surface brightnesses, and mass-to-light ratios and to forward model observations of dwarf galaxies. We present examples of such modelling and show that colors and surface brightness distributions of model galaxies are in good agreement with observed distributions for dwarfs in recent observational surveys. We also show that in contrast with the common assumption, the absolute magnitude-halo mass relation is generally predicted to have a non-power law form in the dwarf regime, and that the fraction of haloes that host detectable ultrafaint galaxies is sensitive to reionization redshift ($z_{rm rei}$) and is predicted to be consistent with observations for $z_{rm rei}lesssim 9$. arXiv: http://arxiv.org/abs/http://arxiv.org/abs/2106.09724v2

Senior Teaghan Brostrom is joined by Dr. Fadia Desmond, the newest president of St. Francis High School, on this special episode on the SFHS Student Podcast Network.

Have you ever met anyone that created wealth with stocks? I haven't. Why not?  Inflation, emotion, taxes, fees and volatility are the reasons. I break this down. The Rule of 72 is what traditional advisers cite as a wealth-builder. I describe why this does not work. Learn why returns from stock and mutual funds are often less than zero. What really creates wealth? Leverage. Learn trade-offs between long-term rentals and short-term rentals. Zach Lemaster joins us. A licensed optometrist and captain for the US Air Force, he's become financially-free through real estate.  We discuss the pros and cons of owning “Build-To-Rent” new construction income properties. It takes patience during the build process. Find Build-To-Rent income properties by e-mailing GRE's Investment Coach: naresh@getricheducation.com Resources mentioned: Show Notes: www.GetRichEducation.com/399 Get income properties by e-mailing GRE's Investment Coach: naresh@getricheducation.com When I interviewed the 401(k) inventor: https://www.getricheducation.com/episode/197-inventor-of-401k-ted-benna-joins-us/ Get mortgage loans for investment property: RidgeLendingGroup.com or call 877-74-RIDGE JWB's available Florida income property: CashFlowAndGrowth.com To learn more about eQRPs: text “GRE” to 307-213-3475 or: eQRP.co By texting “GRE” to 307-213-3475 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. Make passive income with apartment and other syndications: www.imaccredited.com Best Financial Education: GetRichEducation.com Get our free, wealth-building “Don't Quit Your Daydream Letter”: www.GetRichEducation.com/Letter Our YouTube Channel: www.youtube.com/c/GetRichEducation Top Properties & Providers: GREmarketplace.com Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold Partial transcript:   Welcome to GRE! Why Don't Stocks Create Wealth? After answering that, learn about some tradeoffs between LTRs and STRs, and the pros & cons of getting a construction loan and new-build rental properties. Today, on Get Rich Education. ____________________   Welcome to GRE! From Hialeah, FL to Haleakala, HI and across 188 nations worldwide - that's almost all of them - I'm Keith Weinhold. This is Get Rich Education.   I find it interesting that there are still smart people out there who think that stocks create wealth.   Everyday people could create wealth just by investing in stocks or mutual funds or ETFs?   I'll tell ya. I have never met anyone in my entire life that has become wealthy from investing in these vehicles.   Now, that's something that shouldn't offend stock adherents. That has been my personal experience.    Just asking around here at GRE a bit, I found that our Content Manager, Matthew… he said that he once knew just one person that did get wealthy with stocks… and that is because that person's company IPO'ed.   OK, well that's worth knowing. But as for everyday investors, what one might call a retail investor that buys and owns Apple stock or Amazon stock or bought the S&P 500 Index fund from a big mutual fund company… I mean… do you know anyone that ever created wealth from stocks? Or do you even know anyone that ever knew someone that created wealth with stocks.   I'm talking about creating wealth. For example, someone that started at a level of either "just getting by" or starting at a level of "middle class" and then transitioned to "wealthy", simply through shrewd and savvy stock investing.   I think a lot of people invest in stocks just because that's what the herd does.   But they never ask themselves at all… "Have I actually met anyone that's ever created wealth from stocks?"   And if you run with the herd, you don't get ahead.   So why is this? How come virtually no one gets wealthy with stocks?   Well, look. We all learn and understand the world through different lenses. I'm about to share the thought paradigm that shifted my own personal journey… and why I have not personally - or through an LLC - or in any way, owned any stock, or mutual fund, or ETF since the year 2014.   Right now, major stock indices are flirting with bear market territory. This means a value loss of 20% from a recent peak.    Recently, the Dow Jones posted its eighth straight weekly loss. That's its longest weekly losing streak since 1923.   Could we say that misery loves companies? Big Tech has shrunk to Medium Tech. Even staid reliables like Apple, Target, and Walmart are tanking.     Other than a one-month virus "flash crash" in March of 2020, many Millennials and Gen Zers have zero experience with a sustained bear market.     None have occurred for thirteen years, which is an unusually long time frame.   Perhaps these investors will "sell low"; maybe they'll stay the course.   Now, investing in the stock market is so common - and so herdlike - that if you're talking in a general conversation and say: “the market” - people just assume that you mean the stock market.   Well, shouldn't “the market” be creating wealth for people.    After all, the S&P 500 has averaged a 10% annual return over time. In order to emphasize compounded returns, something that traditional, old school advisers often cite is "The Rule of 72".   You've probably heard of it.   What you do is take the number 72, divide it by your annual percent return (10), and that's how many years it takes your money to double.    Therefore, an S&P 500 investor should double their money every 7.2 years. Well, that sounds pretty good to most people..   Then over the decades, several doublings should ensure a fantastic retirement and perhaps even a taste of wealth.   But why doesn't it?   Why doesn't it provide a fantastic retirement most times? And why doesn't it put people on that wealthy echelon… ever?    This is due to five chief drags—inflation, emotion, taxes, fees, and volatility. I've glossed over that before. But lets see how this all negates what so many investors think is some kind of good return.     Let's subtract each one from this 10% unadjusted stock return.   Inflation Many experts agree that the CPI, currently 8%+, understates the true rate of inflation. It could be 15% now.   But let's just say that long-term, true inflation averages 5%.   Yes, you could make the case that it's more. But let's just use 5% inflation. Well then...   …your long-term 10% stock return minus 5% inflation = 5% inflation-adjusted return.   Emotion Everyone knows you're supposed to "buy low" and "sell high". But many do the opposite.   Why?   One has difficulty buying low because prices have often fallen for a long period of time before the dip. The predominant emotion is discouragement.   When stock prices have gone down, down, down, like they have this year, so many people get emotional and sell low… and they justify that by saying… I'm sick of losing money… and if I sell, I guarantee that I'll stop losing money. So many sell low.   But on the flip side, why isn't everyone selling high? It's because prices have grown. It's hard to sell out of upward momentum. Up, up, up, up, up, friends are making money. You've got FOMO. This emotion is euphoria. This makes people buy - maybe not at the peak - buy they often buy higher that what they sold for.   But despite all this, most people believe that they're above-average investors—despite the statistical impossibility. This effect is called illusory superiority.   It's like how 7 out of 10 people believe that they are above-average drivers.   People often sell lower & buy higher.   We'll just say this takes one's 5% inflation-adjusted stock return down to 4%. That's being kind.   Taxes & Fees Long-term capital gains taxes start at 15%. The highest ordinary income tax rate is 37%, which is the short-term capital gains tax equivalent.   Those percentages are what get taken out of your profit - that's what eats into the entire 10% return that we started out with here.   Even if your funds are sheltered in a 401(k) or many retirement account types, yes, you could get tax-deferred growth. But you must begin paying taxes in retirement.   Fees are something that vary quite widely.   So… an S&P 500 investor's return adjusted for: inflation, emotion, taxes, and fees is often below 2%. Maybe far below 2%.   We're not done.   Volatility So many people miss this.   The Rule of 72 and other projections are based on a fixed annual rate of interest.   It's called the compound annual growth rate (CAGR).   Our example… with this Rule Of 72 assumed a smooth, exact 10% return every single year.   This is irresponsibly quixotic. The real world doesn't work this way.   Let's say that a price falls 20%—which again is a bear market. Now, you must gain 25% to get back to "even". That's just math.   Now, if it falls 40%, it must gain 66.7% just to return to sea level.   Using a smoothed CAGR diminishes the damaging effect of return volatility.   So let's take our 2% return that's already been adjusted for: inflation, emotion, taxes, fees. Now subtract out this volatility.   And now, you can see why real rates of return are often less than 0% for stock, mutual fund, and ETF investors. Maybe they're minus 3%. Maybe they're minus 12%.   Real stock returns often crumble faster than a Nature Valley granola bar. They're not good for you either—full of sugar and canola oil.   Note that I even used what many consider "good times" in my example—where we started with a 10% unadjusted return.   This is an audio format here on GRE Podcast Episode #399 so my analysis wasn't deeply technical nor replete with formulas for pinpoint accuracy.   You might remember when we had Garrett Gunderson here on the show a few times. He really goes deep on how stock & mutual fund investors typically lose prosperity year-after-year and Garrett thinks that I'm being kind when I say that a stock investor's real return is “0”.   It helps you begin to understand why you rarely—if ever—met anyone that acquired wealth with these vehicles.   About ten years ago, while working at the state Department of Transportation in an 8' x 10' blue cubicle, I began to realize some things: Investing in retirement plans makes me safe and normal. I don't want a life that's safe and normal. That's not extraordinary at all. Every dollar invested in stocks and mutual funds is a dollar that cannot leverage other people's money. Retirement plans provide zero income until I'm old. I won't get ahead by following the herd. Later, I interviewed the actual man that invented the 401(k) plan, Ted Benna.   Benna told me directly that the plans don't serve people the way they were intended. This helped complete my catharsis.   And my interview with Ted Benna is recorded. You might remember that episode. That was GRE Podcast Episode 197… if you haven't heard it.    Yeah, the guy that actually invented the 401(k) in the late 1970s. That's here on Episode 197.   So, now you understand much of why I haven't owned any stock, mutual fund, or ETF-based investment at all since 2014.   This show is called “Get Rich Education”. So I could talk about anything related to wealth-building and stay on-point.    But now you understand why I don't discuss stocks.    Real estate has some drags too. For example, investors often underestimate their maintenance and repair costs.   Ultimately, the fact that Real Estate Pays 5 Ways™ is why it's superior. It's how anything less than a 20% to 25% fully-adjusted rate of return is disappointing (learn more).    Because real estate is an illiquid asset, this acts as a healthy barrier against "panic" buying or selling. Illiquidity diminishes the deleterious effects of emotion and volatility.   I do know investors who have created financial freedom through real estate, a lot of them, and I'm one.   If I can distill it down into one word for you, the short story about why I've met countless people that have graduated from middle class to wealthy through real estate is leverage.   Some of this is natural bias because I hang out in real estate circles, so I just tend to meet more of these people.   To stock investors, leverage is only available to more sophisticated types. Even then, it often comes with margin call risk. It's in a more limited measure than its wide availability in real estate.   Bear markets… like we have right now in stocks make people re-evaluate things.   To a younger investor that's potentially experiencing their first sustained stock bear market now, it's important to understand that...   ...generally, stocks are not a game designed to build wealth for everyday people anyway.    Times like these make people revert to fundamentals.   Ultimately, your success as an investor hinges upon your ability to provide others with value. Be a person of value in the world.   There have been few times in modern history when owning real estate demonstrates more intrinsic value than it does today.   You're providing others with what has increased in usefulness and is historically scarce in supply… at the same time.   Wealth comes down to your ability to be valuable.   When it comes to residential real estate, there are so many ways that we can segment it. Later on today, we'll discuss new-build properties vs. existing properties and what's going on in those markets today.   We can also parse the space with LTRs vs. STRs.   When we define that, of course, as the name would allude to, it is based on the duration of resident stay.   Depending on the jurisdiction and more, a rental period of under 30 days could be considered a STR (some people refer to these as AirBNBs or VRBOs)… or even up to lease periods of less than 6 months could be considered STR.   LTRs have more predictable long-term income… because a tenant often signs on for a lease period of one year or more… and LTRs are also more recession-resilient.   STRs have lower occupancy - but because the daily rate is so much higher, they can be more profitable than LTRs.   When you look at any investment, it's so fundamental to understand who you serve. Back to my point about stocks, it helps you understand how you can be a person of value.   In LTRs, you serve families, roommates, and everyday mom & pops.   Until just five years ago, STRs principally served two groups of people -  Vacationers & business travelers.  With what happened in the world starting in 2020 with the virus, the STR community was concerned that the business traveler would go away & not come back.   But it didn't seem to matter, because increasingly, over the last 5+ year, you have more & more digital nomads and WFA-types that rent STRs.   LTRs - Midwest & South, away from city center STR Location - resorts, beach communities, ski resorts   HOA limits are something that you have more of with STRs.     STR lodging or rental tax to the resident, you also get to charge the resident with the cleaning fee   Property Mgmt. costs tend to be 8-10% of each month's for the owner of LTRs. For STRs, you'll often pay 20% or more since there are more resident turns & more advertising & listings to manage.    When it comes to financing, you'll often find LTRs to have more availability than STRs. This is huge… since leverage is what really creates wealth.  Damages: STRs tenants pay upfront and usually place a CC on file to cover any damages. So there is some more protection that way.   One great piece of REI guidance is that the best STRs are the property types where if that market dried up, you could fall back onto them and use that same property as a viable LTRs.   To summarize what you've learned so far today…   The definition of a bear market is when a market has lost 20% or more of its value from a recent high.   Stocks don't create wealth due to inflation, emotion, taxes, fees, and volatility. A lot of people miss that until it's too late and it's nearly retirement time - or when they thought they could retire.   LTRs and STRs have a lot of trade-offs. LTRs are easier to finance and have more recession resistance. STRs can provide more income when its dialed in just right. LTRs have the longer track record.   Coming up, a guest & I are going to discuss today's opportunity on brand new construction rental property.    That's straight ahead. I'm Keith Weinhold. This is Get Rich Education. ______________________   Oh, yeah. Some good content from our guest on the pros and cons of using a construction loan with these new-build rental properties. You sure don't have to go that route if you don't want to.   For this batch of properties, and it is an ongoing batch of constantly refreshing properties, if you want to get to the front of the line, go ahead and e-mail our investment coach Naresh.   You not only get access to available properties - SFHs up to four-plex & sometimes larger, existing build & new-build, some properties conducive to STRs at times - though most are LTRs… some really inexpensive properties, at times less than $150K - they would tend to be existing, renovated properties, not new ones.    For access to all those property types and free coaching, contact Naresh here.   You can do that at: naresh@getricheducation.com   Coming up here on the show… next week, for milestone episode 400 - it is Miracle Morning author Hal Elrod & I, discussing investor mindset and relationship-building in real estate. Yes, it look longer than I expected to get Hal & I together at the same time. That finally happens next week. Our Operations Lead here at GRE, Aundrea, is expected to be here with you & I for that show next week too.   The week after Hal Elrod, the “International Man”, Doug Casey joins us. Last time he was here, we discussed ideals like liberty & freedom. This time, it's going to be about economics & it's usually pretty gloomy commentary with Doug… but he keeps it real.   Then, down the road, Rich Dad Tax Advisor Tom Wheelwright is back on the show with us yet again to help you cut your taxes toward zero.   So with Hal Elrod, Doug Casey, and Tom Wheelwright coming up… I'd say that one inspires you, one depresses you, and one informs you.    Hal being the inspiration Doug being the source of the depression - he knows that I kid, I was joking with Doug Casey about that last time And then, Tom Wheelwright being informative with… seemingly… some new tax plan that he has to tell you about.   Then after that, negotiation expert Chris Voss returns to the show. You might have seen his masterclass course.    So… GRE is so stacked with great shows in the near future here.   In inflationary times, there is no better place to invest than in real estate.   I mean, even if you bought a property with no loan & with no tenant in it, real estate would be an inflation hedge just based on that alone… just based on it's capital price tracking inflation.   But then you get the leverage where you can 4X or 5X inflation… while also having your debt debased… while also having your cash flow OUTPACE inflation since your biggest expense - the mortgage - stays fixed.   This is just one of so many reasons why real estate is what's made more ordinary people wealthy than anything else.    I really encourage you to get started… not only do we have this new coaching service steeped in GRE principles… but it's also free… and we also have available properties.   I encourage you to reach out to our friendly GRE Investment Coach, Naresh at   naresh@getricheducation.com    Until next week for Episode 400, I'm your host, Keith Weinhold. DQYD!

SFHS swimmer talks her college commitment, what recruiting is like for her sport, and how to balance being a student and an athlete at the high school and college level.

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Property management has never been easier with Foliolens! Get early access to this 5-in-1 app now!More on YouTube? Check the video version at the Youtube linkJason started out house hacking 15 years ago and then this year he has 1031'd a property and now owns five SFHs and two duplexes in Memphis and STL respectively. One of the SFH is a turnkey property.Strategy & Investment area:Started renting out rooms from his own home to pay off his mortgageStarted out doing the repairs, and ended up hiring a property managerCheck out why Jason invested outside of California  The difference with handling properties in and out-of-stateIs short-term investment a quick asset? Or has quick turnover?Quotes:Our goal was to get to the point where we are able to replace our income from [our jobs or business], and then become more full-time investors. Just because you're a property manager does not mean your hands are off- there certainly is managing the manager mentality that you have to have.Property managers have 1000s of homes that are managed, and I think you kind of have to be the squeaky wheel to make sure that your property is getting taken care of, otherwise, it will get lost in the shuffle.And I wanted to be passive in true meaning so relatively hands off, not that I don't ever want to be involved, but not that I have to do something on a very regular basis. Mentions:Lemming EffectPaper money (or loss)1031 Exchange - 12:10HELOC strategyBRRRR strategyFour Quadrant of Robert KiyosakiInvestor Q&A Round:Q: And then the second question that we like, to us is, if you had a time machine, where would you go? And why?A: I go back to the 21-year-old me who had just graduated from college and say, ‘Start saving your money for investing because if you'd bought, if I bought two houses back then, instead of one house, I have twice the equity. And instead of buying five cash flow properties, I'd be buying 10.' And certainly plausible, but not part of my plan. When I bought my first home, it was never an investment. It was to own a house, right? To be able to go back and tell me ‘No, get another one of those to do more of this early in your career, or early in your life, I think would pay dividends.'Q: Is there somebody that you admire particularly that you would love to meet and why? A: Robert Kiyosaki, and, you know, his, his whole concept of the cash quadrant, you know, really kind of opened my eyes. Reached out to Jason through his LinkedInStart taking action right NOW!Goal-setting the right way! Hesitant to make the first step towards real estate investing? Axel learned the hard way- but you DON'T have to start that way. Feel free to talk to him :)Connect with us through social! We'd love to build a community of like-minded people like YOU!

I talk with the person who I lend money to in order to rehab distressed properties. We discuss how it works and the 6-12% annual returns. Importantly, many properties are secured in stable, cash flowing Ohio and around the Midwest and South. SFHs are common. You are the lender, not the borrower.  Get started at: GetRichEducation.com/Lending Unlike owning a rental property where a tenant pays you to live there… a private lender program means that someone pays you to “rent out” the use of your money, typically for a year or less. The operator, Dani Lynn Robison of Freedom Capital Investments in Springboro, Ohio, tells us how she has never lost an investor's money.  They have always paid back the lenders' initial investment, plus interest, as agreed. Learn about investing on the “debt side” of real estate rather than the “equity side” with private money lending at: GetRichEducation.com/Lending Resources mentioned: Learn More & Get Started: www.GetRichEducation.com/Lending Show Notes: www.GetRichEducation.com/370 Get mortgage loans for investment property: RidgeLendingGroup.com JWB's available Florida income property: www.CashFlowAndGrowth.com eQRPs: text “EQRP” in ALL CAPS to 72000 or: eQRP.co By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. New-Build Florida income property is here: GetRichEducation.com/SunshineState New Const. Florida SFHs & multifamilies: www.B2Rdirect.com Best Financial Education: GetRichEducation.com Get our free, wealth-building “Don't Quit Your Daydream Letter”: www.GetRichEducation.com/Letter Top Properties & Providers: GREturnkey.com Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold

From board games to financial freedom! Today, Stacy sits down with Kendra Barnes, real estate investor and founder of The Key Resource.Kendra is a real estate investor who has used the buy & hold strategy to reach financial freedom with her husband. Formerly working for the government, she played the game “Cash Flow” on a Saturday night and was looking for rental properties by Monday morning!Cash Flow is a board game that's similar to Monopoly but mimics real life better. The object of the game is to get out of the “rat race” of life. To get out of that race, you have to invest & get passive income to live your dream life. Realizing that she needed to invest in real estate to win “Cash Flow” and win real-life, she bought her first duplex and has never looked back.As Stacy says, the real estate game requires courage & grit! Today, Kendra diversifies her rental strategies with SFHs, MFHs, Airbnbs, Section 8, travel nurse rentals, and long-term tenants. Her passion is demystifying real estate investing & showing others how they can build wealth and be boss real estate investors! Kendra's #1 advice? You don't need to be wealthy to start real estate investing, just start with what you have right now!Learn more about Stacy Rossetti: https://stacyrossetti.com/Check out RentRedi: RentRedi.comWatch the episode on YouTube: https://www.youtube.com/c/RentRedi/videos

Cold calling versus other tactics and what is necessary when doing due diligence with Chris Salerno and Justin Moy. Follow us on Instagram, Facebook, and TwitterFor more educational content, visit our website at www.diaryofanapartmentinvestor.comInterested in investing with Four Oaks Capital?  First step is to schedule a call with us. Originally aired on Jul. 16, 2021----Chris SalernoChris Salerno has successfully transacted more than 40mm in real estate volume and helped lead the #1 real estate team in the Carolinas to produce more than $140mm in annual sales. Named to Charlotte's 30 under 30, Elite 50, Elite 50 entrepreneurs, 30 under 30 entrepreneurs, and nominated for Forbes 30 under 30, Chris has quickly gained recognition, and notoriety for his hard work, and dedication in the Real Estate Industry.Visit his website https://www.qccapitalgroup.com/ ----Justin MoyI started out in real estate sales selling SFHs in the San Francisco Bay Area after a brief career in the government sector. That's when I learned that the real wealth was in owning real estate. After graduating college from the University of Arizona, I moved to Scottsdale to pursue a career in apartment syndication.Email justin@perpetualwealthcapital.com ----Your host, Brian Briscoe, is a co-founder and principal in the real estate investing firm Four Oaks Capital.  He and his team currently have 485 units worth $21 million in assets under management and are continuing to grow.  He will retire as a Lieutenant Colonel in the United States Marine Corps in 2021. Learn more about him and the Four Oaks team at www.fouroakscapital.com  or contact him at brianbriscoe@fouroakscapital.com - be sure to let him know where you found him.Connect with him on LinkedIn or Facebook.vvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvv> Check out our multifamily investing community!> The Tribe of Titans> Get exclusive access to the Four Oaks Team!> Find it at https://www.thetribeoftitans.info^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

By investing in real estate, you can make a positive impact in the lives of those in greater need aside from creating generational wealth for your family. Check out today's episode and learn how Michelle Jeong's story can inspire you to move forward in your real estate journey.WHAT YOU'LL LEARN FROM THIS EPISODEWhy focus on affordable housingWhat to look for in a propertyHow to manage your relationship with investorsLeaving a full-time job to focus on real estateWhy you shouldn't compare yourself with othersABOUT MICHELLE JEONGMichelle came from a poor immigrant working-class family to build millions in net worth thanks to real estate. Along this path, she found herself divorced, with a failed business, needing to support two small kids and care for elderly parents simultaneously. In 2017, she left that world to focus full-time on real estate. She purchased a handful of SFHs in the Midwest and then pivoted to focus on affordable/workforce multifamily housing since she would have a greater chance to make a positive difference in the lives of her tenants, partners, and herself. In 4 short years, She built a multi-million dollar portfolio and more importantly, created a flexible schedule in which she can be present for her family and be her own boss.RESOURCES/LINKS MENTIONEDEmail: thedifferencecapital@gmail.comRich Dad Poor DadRich Dad's CASHFLOW QuadrantThe Mindset Academy

Legendary investor and business mogul Jim Rogers joins us from Singapore. Inflation is on the rise. I was just asked to leave a tip at Subway for the first time. Inflation nudges most people toward poverty. It moves GRE listeners toward prosperity. Rents for detached SFHs are up 7.9% year-over-year. The NAR just told us America is 6.8 million housing units short of demand. World governments are printing, spending, and driving interest rates to all-time lows. Historically, this has led to higher inflation. I ask Jim Rogers about inflation and the prospects for U.S. hyperinflation.  He believes interest rates will go higher “in the next few years”. He likes tying up 30-year fixed rate mortgages. Jim thinks the free market might take control of interest rate policy away from The Fed (wow!). “The next recession is going to be the worst in my lifetime.” -Jim Rogers Jim Rogers & I also discuss: MMT, agricultural real estate, cryptocurrency, and advice for a young person. I explain what CBDCs are - Central Bank Digital Currencies. Resources mentioned: Jim Rogers' resources: www.JimRogers.com SFH Rents See Huge Gains: https://www.cnbc.com/2021/06/15/rents-for-single-family-homes-just-saw-the-largest-gains-in-nearly-15-years.html America Is Short 6.8 Million Homes: https://www.businessinsider.com/housing-market-short-millions-homes-homebuilding-real-estate-nar-report-2021-6 Show Notes: www.GetRichEducation.com/351 Get mortgage loans for investment property: RidgeLendingGroup.com JWB's available Florida income property: www.CashFlowAndGrowth.com Ali Boone's Recommended Book: https://amzn.to/2NsMVlF EQRPs: text “EQRP” in ALL CAPS to 72000 or: eQRP.co By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. Best Financial Education: GetRichEducation.com Get our free, wealth-building “Don't Quit Your Daydream Letter”: www.GetRichEducation.com/Letter Top Properties & Providers: GREturnkey.com Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold

In this episode, we explore: Guest Background Should we buy a house or rent a house? Finding out how to use VA Loan Buying and Holding stocks Challenges of Investing from overseas Finding deals through wholesalers Different types of resources Financing deals About Naaman: Naaman Taylor is an Active Duty Army soldier of 12 years and plans to make a career out of the Army. He has been a Real Estate Investor for seven years starting with his VA loan. His current portfolio consists of a Four-plex in Killeen Texas, Triplex in Lawton Oklahoma, two duplexes in Harker Heights Texas and four single family homes in the Dallas Fort Worth area (15 units across small MF and SFHs). He loves to invest in the 2-4 family homes surrounding military bases for high cash flow and central to northern Texas cities for appreciation and median cash flow. His future plans are to buy and hold as many properties as God allows him for retirement. Snapshot: 36:24 What is your number one failure in real estate? A place of mine went over budget. What advice do you have for other military investors to be successful? Utilize your VA loan correctly. What inspired you to marry a military and serve your country? I enjoy the work as a soldier and teaching younger ones. What is your dream? I just want to travel all the time. Quotes: “People do this all the time, people live everywhere around the world and make money around the world.” 17:49 - 17:52 “If you find to yourself that you are deserving to make money and you deserve to have nice things, you can find a way. You have to believe in yourself first.” 17:56 - 18:03 Snippet: 12:24 - 13:28 REELS: 26:13 - 26:52 Connecting with the Guest: Instagram: https://www.instagram.com/uncommon_denominator1/?hl=en Facebook: https://web.facebook.com/taylor.naaman

With shrinking national housing supply amidst surging demand, some investors cannot find sufficient inventory. People are moving to places like: Texas, Tennessee, and Florida. Suburban properties have higher appeal with today’s work-at-home trends. New construction properties in infill areas have advantages: an established area, neighbors with equity.  Learn about a system to help keep your property taxes discounted. With all this in mind, learn about what capitalizes on all of these trends - and there’s available inventory. Purchase prices are from the $140Ks & up - new construction - SFHs up to fourplexes and larger. Who knows how long this will last? Get started at: GetRichEducation.com/Texas. You will receive a report and an invitation to a live Texas properties webinar with me this coming Friday, March 26th at 3PM ET. Resources mentioned: Show Notes: www.GetRichEducation.com/337 Learn more & attend Friday’s Texas properties webinar: www.GetRichEducation.com/Texas Mortgage Loans: RidgeLendingGroup.com New Construction Turnkey Property: CashFlowAndGrowth.com Ali Boone’s Recommended Book: https://amzn.to/2NsMVlF EQRPs: text “EQRP” in ALL CAPS to 72000 or: eQRP.co By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. Best Financial Education: GetRichEducation.com Get our free, wealth-building “Don’t Quit Your Daydream Letter”: www.GetRichEducation.com/Letter Top Properties & Providers: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold

Today’s guest reveals how he gets $10,755 of monthly cash flow with four SFHs. They’re long-term rental tenants. Get our free newsletter here: www.getricheducation.com/letter I tell you why a man with $20 million of debt is a financial winner, making analogies to Brett Favre and Cy Young. Ryan Chaw of Sacramento, CA joins us. A full-time pharmacist, he’s age 29, on track to retire from real estate income by age 31. Unusually, he invests in California single-family homes (SFHs). It’s not an area known for cash flow.  He rents them to carefully-screened college students. He self-manages, but hasn’t visited his properties in over a year. In areas like Stockton, CA, he gets $3,000 rent from a $300K SFH. Ryan uses his “PRIME” Method: Placement of ads, Review applicants’ social media, Identify tenant type, Measure responsiveness, and Ensure proof of income.   He has 17 tenants in four SFHs.  Ryan gets money for down payments with his W-2 job. He also uses a HELOC to reset his leverage and create arbitrage. He travels the world too. He won’t delay all gratification. Resources mentioned: Show Notes: www.GetRichEducation.com/332 Ryan Chaw’s free guide: www.NewbieRealEstateInvesting.com Mortgage Loans: RidgeLendingGroup.com New Construction Turnkey Property: CashFlowAndGrowth.com EQRPs: text “EQRP” in ALL CAPS to 72000 or: eQRP.co By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. Best Financial Education: GetRichEducation.com Get our free, wealth-building “Don’t Quit Your Daydream Letter”: www.GetRichEducation.com/Letter Top Properties & Providers: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold

The Upreneur podcast has partnered up with SCORE, hosted by Jeremy Straub, to help bring engaging conversations with today’s top leaders and business owners. In today’s episode, we spoke with Rishi Kapoor, Founder & CEO of Location Ventures, about how patience and tolerance is key in real estate. You want to surround yourself with a balanced team. Being an entrepreneur is about putting your everything into an idea you are passionate about. You have to ask yourself, do you want to continue your side projects as a hobby, or do you want to pursue your dreams and make it your profession? The decision relies on you. You have to work hard but be humble about your abilities. We are never a finished product, as humans, you can always improve. See what others are doing, and figure out how you can do it better. Rishi has spent the last ten years focused on residential real estate, primarily in the luxury sector with a strong background in sales & marketing, prior to focusing on sponsoring development. Upon founding Location Ventures, he set out to create awesome living experiences in premium locations centered around nature and technology. To date, Rishi is responsible for leading the development of a $500M portfolio including: high-end, custom single-family homes; rehabilitation of multi-family properties; development of boutique condominiums; and is the Managing Partner of URBIN, a company dedicated to co-living, co-working and wellness and FORUM, an elevated co-working experience with high-touch business servicesRishi first and foremost takes great pride in fostering close relationships with the company’s partners & team. His day-to-day role centers around identifying unique opportunities, capital formation and setting the product vision for our projects while working closely with the development team on proper execution. He received business degrees in Finance, Marketing & Management from the University of Miami, and is also a non-practicing attorney, having graduated from UM Law. Rishi comes from a real estate family that has developed & invested in hotels, SFHs, and offices throughout the Southeast United States and New Delhi, India over the last 40 years.Websitehttps://location.ventures/Facebookhttps://www.facebook.com/LocationVentures/Instagramhttps://www.instagram.com/locationventures/Thank you for listening, and don’t forget to share, rate, and subscribe!If you enjoyed today's episode and want to stay up to date with new upcoming episodes, subscribe to our podcast. Please rate and comment on what your favorite moments from the podcast were, or who you would like for us to how on our show. If you found value from these podcasts, consider sharing this with your friend and family! Don't forget to Like, Subscribe and Rate our podcast!You can also follow us on our social media.Instagram:https://www.instagram.com/u_preneur/ Facebook:https://www.facebook.com/upreneurpodcast/Website:https://upreneur

Welcome to Pillars of Wealth Creation, where we talk about building financial freedom with a special focus in business and Real Estate. Follow along as Todd Dexheimer interviews top entrepreneurs, investors, advisers and coaches. In this episode, Todd talks with Ellie Perlman about how she pivoted from investing in single family homes to large multifamily properties. Ellie is a multifamily real estate investor and a syndicator, who owns over 2,000 units across the US, worth over $200MM. Ellie is the Founder and CEO of Blue Lake Capital, a real estate investing firm specializes in multifamily investments, where she helps investors grow their wealth and get double returns by joining her investments. She is also the host of “REady2Scale Real Estate Investing” podcast, as well as a coach and mentor to up and coming multifamily syndicators through her personal 1-on-1 mentoring program. 3 Pillars 1. Consistency 2. The right combination between pessimism and optimism 3. Have a higher Why Books: The One Thing by Gary Keller and Am I Being Too Subtle by Sam Zell You can connect with Ellie at www.ellieperlman.com Interested in coaching? Schedule a call with Todd at www.coachwithdex.com Connect with Pillars Of Wealth Creation on Facebook: www.facebook.com/PillarsofWealthCreation/ Subscribe to our email list at www.pillarsofwealthcreation.com Subscribe to our YouTube channel: www.youtube.com/c/PillarsOfWealthCreation

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

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

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

In today's show we speak with Justin Corritore. Justin is based out of Erie, Pennsylvania and is a Project Manager for a global supply chain company. He tells us his story of how he took the first steps into buy and hold investing. Justin dives into his portfolio of SFHs and small multifamily apartments. He gives some great advice on how he found the time to make it happen while working full-time, being a husband and father, and operating his own property management company. He also touches on some creative financing strategies and what systems he put in place to make it all work!   Justin Corritore   Stonehouse Management Company   520 West 6th Street, Suite 23 Erie, Pennsylvania 16507   814.464.0550 Office 814.580.8752 Direct   Justin@Stonehouse.Management   www.Stonehouse.Management   * Proud member of the Apartment Association of NW PA

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

YAS. The first real episode. I was beyond excited to bring you guys some expert knowledge from the power couple behind @mindfulmoneycoaches, Dan & Liz! I had to have these two amazing individuals on, as they were the best mentors I could have asked for as we walked through our first few deals. We talk about risk, the first steps they took when Corona Virus hit, how to protect yourself in a downturn, and how their relationship with debt has evolved over their investing career. They have been through 5 market downturns, and their use of debt evolved through this time (all while having 3 babies!). They currently own 17 SFHs, and have reached FI. MY FAVORITE part of this whole interview is the part where Dan & Liz dish about a big secret they are glad they did not have to share with Dave Ramsey. These two are so real, and I love it. Okay, I have two favorite parts. They also take us on a deep dive into seller financing. And somehow make it all seem so less complicated. They talk through their first two seller financing deals, and the specific types of sellers you want to find, who may WANT seller financing. Hint: They may be at your local bingo halls. We talk about how to treat your tenants right, and how proactive landlording approaches can really pay off down the road. You will hear them talk about the impact of Corona Virus today, which is the topic at the forefront of most people's minds in 2020. If you want to learn ever more about Dan & Liz, check them out on Instagram or their website. Enjoy! LEARN MORE: Life Coach School Podcast (Liz is a trained life coach!) House Hacking Airbnb Arbitrage Seller Financing --- Support this podcast: https://anchor.fm/nerdsguidetofi/support

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

Most people sell their time for dollars. Were you really meant to do what you’re doing right now? Mark Twain said, “Why not go out on a limb? That’s where the fruit is.” Culture conditions most people to live an average, stale life. Don’t trade away your authenticity for approval. In over 6,000 years of human history, being a conformer is not a success recipe. 40 rental doors x $150 cash flow = $6,000 per month. This buys you time. Don’t fear failure; fear not trying.  Powerful assignment: write your own obituary. No one achieves anything extraordinary by playing it safe. People that say, “I want to live frugally.” actually want to say, “I want to live well.”  But they don’t know how. Get residual real estate income at: www.GREturnkey.com  I update you on asset class prices over the past year. Americans paid $4.5T in rent this past decade. The median homebuyer age is up to 47. Corelogic expects a 5.4% housing price jump in 2020. Housing shortages should continue at the low end of the market. Nearly every news outlet reports a stable housing environment. Why? Demand exceeds supply, appreciation rates are sustainable, stringent loan requirements, inflation-adjusted home prices are often still below 2005 levels. **The entire episode's lyrics are at the bottom.** __________________ Resources mentioned: Turnkey income properties: GREturnkey.com Americans Paid $4.5T Rent Last Decade: Zillow article Median Age Of Homebuyers Up To 47: HousingWire article Fannie Boosts 2020 Housing Forecast: CNBC article Lenders, Builders More Conservative: CNBC article Home Prices To Rise In 2020: Yahoo Finance article Homes Under $250K Near Extinction: HousingWire article Mortgage Loans: RidgeLendingGroup.com eQRP: Text “QRP” to 72000 or: TotalControlFinancial.com By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. JWB New Construction Turnkey: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation Welcome to Get Rich Education, I’m your host, Keith Weinhold. Mark Twain said,“Why not go out on a limb? That’s where the fruit is!”  I tell you how YOU can go out on that limb to get that fruit - that prosperity in your life. And, and update on markets and housing here in the new decade. Today, on Get Rich Education. Welcome to Get Rich Education, I’m your host, Keith Weinhold. This is Episode 275 ... and you know something? It has always fascinated me that people will trade time for dollars. You have traded your time for dollars … and I have sold my time for money in the past, as well. Yeah, amazes me that people will work, often doing something that they don’t EVEN LIKE - and spend that time away from their family or for things that they don’t enjoy doing … just for money. It’s actually even worse than that. The long-term plan - the OUTCOME for this sacrifice - isn’t even satisfying. It’s for you to retire old, and THEN only begin to really live … maybe. Well, ironically, the answer to your potential freedom is something that you actually slept inside last night - a piece of real estate.  But you need to invest in real estate in a strategic way. You don’t need to be a landlord and you don’t need to know how to fix things - but few know the way. Here on this show, I simply tell you the things that I would have wanted to know before I started down this road to freedom back in 2002, which is when I bought that seminal four-plex building.   You are where you are today because of you.   Your life isn’t a fluke and it isn’t an accident either. You are where you are because of your choices.   Well, let me ask you - were you meant to be doing what you’re doing now?   Were you put on this earth to do … that?   You probably know definitively without me even having to get specific - you already know - yes or no - if you were MEANT to be doing what you do for money now.   See, the #1 limiting reason that people give for why they can’t do something that they really want to do in their life … is … money.   So, time vs. Money is something that we discuss a lot on the show. It’s something that’s infinitely interesting to me … and what you need to do is “Go Out On A Limb”.   I’m going to discuss that with you a lot more later today.   But first, since we’re a few weeks into this new decade, let’s talk about some more broad and contemporaneous news items - this investor environment that you live inside every day.   Whipping around the asset classes like we do from here time-to-time here - in the year that was, last year, what really happened?   S&P 500 was up nearly 29% - it’s best performance in years. Of course, it’s volatile. In fact, it was just DOWN 6% the previous year.   Year-over-year, many commodities were up. Gold was up 18%, Silver up 15%. Oil - Light Sweet Crude - was up 22%.   Recession fears peaked back in September - four months ago. Columnists and economists and everyday people don’t really talk about recession as much as they did late last year.   Last year, the 10-year Treasury Note yield fell seven-tenths of one percent down to 1.9%. Now, why do you care about what you’ll hear people just shorten and call “the 10-Year T-Note?”   Economists say it that way with their slang.   That is because it’s the rate most closely tied to long-term mortgage interest rates.   I just told you that the note yield fell SEVEN-TENTHS of one percent last year.   Well, see, the most popular mortgage in America, the fell EIGHT-TENTHS of one percent last year down to 3.7%. That’s the 30-year loan.   So, pretty closely correlated. And of course, that’s the mortgage interest rate for primary residences. For investment property, it’s often nearly one percent higher.   Last year, the Freddie Mac House Price Index was up 3.6%.   I like to look at the Freddie Mac Index because it includes pricing for all 50 states and Washington, D.C.   The Case-Shiller Housing Price Index only measures 10 to 20 large cities.   One news story that we experienced in the past year is one that almost no one talks about.    Now, you generally want there to be higher wages out there. That means your tenants can afford to pay you more rent.   Higher wages mean higher inflation which means higher asset prices and also, faster debasement of debt that you owe.   Now, whether you agree that there should be a minimum wage or not ...   The minimum wage keeps getting higher across the country.    More than 20 states are bumping up pay for minimum wage workers this year, here in 2020, while Seattle’s large employers will now pay a nationwide-high of at least $16.39/hr to employees.    Meanwhile, the FEDERAL minimum wage has remained parked at $7.25. But these higher state wages - are a positive for real estate investors.   Now, I’ve aggregated a number of news stories that matter to you - all that have published over the past few weeks. Just about everything is positive for a stable housing environment.   Zillow report an astonishing figure.   Over the last decade, do you have any idea how much Americans paid in rent - in total?   Americans paid $4.5 TRILLION - with a “T” - dollars in rent in the last decade - the decade that just ended a couple weeks ago - the 2010s.   Well, that’s a gigantic number. It’s so giant, that it’s more of a fun figure to contemplate and hard to put it into context.   What CAN you compare this to? Well, this is greater than the GDP of Germany - which is the world’s 4th-largest economy.   Yes, it’s been a rather lucrative decade for landlords - partly due to the fact that the homeownership rate fell through the decade and - consequently - there are more renters now.   So, yes, you only need a small slice of this $4.5T dollar pie to win a substantial degree of financial freedom yourself.   Housing Wire has reported on what the median age of a homebuyer is in America today. Do you have any idea what that age is?   Well, I’ll tell you, to give you some context here, that in 1981, the year that Ronald Reagan first became President, the median age of a homebuyer then was … 31.    Age 31 back in 1981.   The median age of a homebuyer today is … higher than that. Just dramatically higher. Almost unbelievably higher … it is age 47. 47!   So … how did this happen?   There are VARIOUS reasons for this delay, including a dramatic increase in student loan debt - like we’ve discussed before - and a general shifting of attitudes towards the traditional homebuyer cycle.    People are waiting longer to marry, have kids, and buy houses. Household formation is postponed now.   These are some things that you’ve already realized. But you may be surprised to learn that the RESULT of this is now a 47-year-old median age homebuyer.   That’s like … old enough to be a grandparent perhaps.   Just remarkable - and again, great news if you’re renting property to others. People are renting longer - or just renting forever.   Now understand something else - and look, you can’t discriminate against a tenant based on age or for any other reason.    But just think about what else this means - there’s a renter pool today with more, say, 35 and 40-year-olds in it than there used to be …   … and therefore, a smaller proportion of 25-year-olds.    You have this aging of tenants … and older tenants tend to live more quietly in your property and be more gentle on your housing unit.   Long-term demographic trends exactly like these are why we talk about what we talk about here - how everyday, busy people and working professionals can create residual income with these investment properties.   CoreLogic expects a 5.4% home price jump in 2020. Yes, this would be a greater appreciation rate than that 3.6% we saw last year.   Fannie Mae has significantly boosted ITS 2020 housing forecast.    Overall housing DEMAND, they say, is incredibly high, especially at the lower end of the market, which is exactly the end of the market where builders are least active.    Prices are rising fastest on the low end, sidelining some first-time buyers.   Fannie Mae’s Chief Economist Doug Duncan says: “Housing appears poised to take a leading role in real GDP growth over the forecast horizon for the first time in years, further bolstering our modest-but-solid growth forecasts through 2021.”   Now, CNBC recently reported that:    U.S. homebuilders and lenders are to blame for the country’s housing shortage, Marcus & Millichap CEO Hessam Nadji said. Home construction companies have reduced speculation and lowered risk-taking in an effort to prevent “the lessons — if you will, the hard lessons — learned in the  2008-2009 Housing Crisis & Great Recession - from happening again,” is what he said. “All of that is frustrating from a consumer perspective, but it’s actually very healthy from an investment and economic perspective for the U.S. as a whole,” he said. Yahoo Finance - really all these news outlets are reporting various sources that home prices are expected to rise modestly and that housing shortages are expected to continue. Rather than reporting on another similar story about this … I’ve been saying for years on this show that if you’re waiting for housing prices to drop substantially … well, anything is possible.    But I don’t see what could possibly make that happen.   And that’s primarily due to three or four reasons that housing stays firm:   The #1 reason - the chief one is that housing demand exceeds supply. That’s just basic economics. And the housing crash of … now 13 years ago ... was due to the opposite condition. Back then, there was overbuilding - back then supply exceeded demand.   The second of three reasons is that appreciation rates ARE sustainable: Less than 4% per annum lately. Leading up to the housing crash, they were TEN TIMES that in some markets - totally unsustainable.   The third reason that supports housing is that lending practices are responsible. To get a loan, you DO need to supply a somewhat-annoyingly high amount of documentation. You need to have income, reserves, and some decent credit. That didn’t happen in the Great Recession buildup either - ANYONE qualified - and then that ARTIFICIAL demand helped push up home prices unsustainably.   Really a fourth reason - or a bonus - is that once you adjust for inflation - which so many people and even reporting outlets forget to do - many housing markets still haven’t even reached their pre-recession peak from way back in 2005.   So, these 4 reasons to be bullish about housing are all MY takes.   Links to all of the articles that I cited are in the show notes.   Next week, Tom Wheelwright returns to the show with me. Yes, it’s the long-awaited show where it’ll be Weinhold and Wheelwright on 401(k)s and going deep on how you can obtain the desired “RE Professional Designation” and the GREAT tax advantages that that gives you.   Are 401(k)s worth contributing to - even if you get an employer match? We’ll take that one head-on next week. And I think you’re going to get some really surprising answers.   During the holidays a while back, we had all FRESH shows. San Diego-based Get Rich Education listener Andrew Stanton - and his layoff story reminded us of the importance of having multiple income streams.    Should you - as they say “Rent out your backyard” with an ADU - accessory or auxiliary dwelling unit. Well, in places like California where they’re popular ...   Why don’t you instead enjoy your backyard and invest in markets in the Midwest & South where the numbers make better sense anyway.   Two weeks ago, CFP Brent Sutherland & I discussed why conventional financial advisors don’t discuss RE with you.   Last week, we had the “hands-on” perspective with Kevin Cross, asking, “Should you self-manage your rental property and your tenants?”    For him, the answer is “yes” - with some help - and that’s fine.    For me, the answer is “no”.   I want control without having day-to-day responsibility.    Let’s do good in the world and provide people with clean, safe, affordable, functional housing. But I make sure my manager does that.   I want to directly invest in real estate, with property titled in my own name - that way I get paid up to 5 different ways.   But, I don’t want it - I’ll say in my grip - as in - I don’t want to hold real estate right in my hand - otherwise it’s on my plate & on the front burner.    But I do want it within my arm’s reach so that I have CONTROL, and yet a FAIR measure of passivity.   If you want more out of your life, you’ve got to go out on a limb. I’m going to talk about that with you today … next … I’m Keith Weinhold.   This is Get Rich Education.  ________________________   Welcome back to Get Rich Education. I’m your host, Keith Weinhold.   When it comes to your day job ... or how you spend most of your waking day, were you meant to be doing what you’re doing now?   I think that a lot of people get culturally conditioned that you have one path that you just MUST take throughout life, and if you deviate from it too much, that’s bad … because now you’re a non-conformer.   Yes, one path.   This narrative through the Industrial Revolution that you should go to school, get this amount of formal education, this amount of college debt, a good job, work for one company, marriage, kids, buy a big house …   … get a new car every 5 years, just 2 or 3 weeks of vacation per year (my goodness - are you kidding me?), work for 40 years, then retire & play golf … or something like that.    That’s what’s supposed to quote-unquote “guarantee” the masses happiness, fulfillment, and meaning. But it often doesn’t.    So why settle for what the masses do?   People are willing to trade away their authenticity for approval. Rather than being authentic, they instead settle for society’s stamp of approval.   Don’t trade away your authenticity for approval.   Parents, community, friends - they all taught you - here’s the one way you have to live.   Why don’t you, instead, custom design your best life.   What does success look like to you?   Is success being a doctor, lawyer, dentist. If you drive “this” nice of a car, or if you live in this neighborhood, or this nice of a house, if your kids go to this school.   Instead, your definition of success may very well be - are you doing the things that you dreamed about? Are you impacting others in a meaningful way?   You can either live a life of safety or a life of creativity.   Go out on a limb - where that tree branch might yield a little, 30 feet above the ground, scaring you.    Go out on a limb … because that’s where the fruit is.   Understand that the consequence might be that fewer people will PERCEIVE you as a success. How you make your money is more important than how much money you make.    We’re “Get Rich Education - and “Get Rich” means living a rich life - whatever that means to you.   When you’re young & people ask you “What do you want to be?” when you grow up, they’re not REALLY asking what you want to be at all.    They’re asking, “What do you want to do professionally, to earn money?”    It feels risky to say what you REALLY want to be.   It feels risky to use an online platform to try to crowdfund your kitchen device invention. You’re afraid you’ll be seen as a failure when you share that on Facebook and get ridiculed from your friends.   That’s going out on a limb.   Trying to get your workout app featured on Shark Tank - that’s not being a conformer. But that’s where the great stuff happens.   Or, it’s doing what we focus on here - getting residual income from rental property to buy the time to do what you want to do ... or be who you really want to be.   It’s more generationally-proven than those strict entrepreneurial endeavors.    It’s neither quick nor easy, but real estate is a stronger tree branch - and your fruit IS out there.   If you get 40 rental doors that even cash flow just $150 a month each = That’s $6,000 month in rental income for you. Or double that or 10X that if you need to.   Most people live inside circle of certainty with their job and life. And in that small circle, we’ll call it 100% safety & security.   Now, if you enlarge your circle so that it surrounds the first one, you might be living where you only have 80% certainty in your life’s outcome.    If you make an even larger circle, around the first two, and really go for it, now your sense of certainly might be down to 60%.   But the one thing that you CAN be certain of then, it’s that you won’t have any regrets.    The #1 regret of elderly people that are in a nursing home is that “Gosh, I never tried _____”.   They didn’t go out on that limb and they never tasted that sweet, succulent fruit.   I can help tell you whether you’re going out on a limb or not, right now.   Do you know what the most powerful assignment is - with regard to this - it’s to write your own obituary. Put pen to paper.   If you must write your own obituary, right now … you’re going to have great clarity on if your accomplishments are or your contributions … or your current trajectory … are putting you where you need to be.   I think writing your own obituary can strike some fear into you. It puts some fear into me. What would people say about what you did? What would you write down about yourself?    In over 6000 years of recorded human history, no one has ever achieved anything outstanding by playing it safe. No one. The message is clear. You need to either accept the necessity for calculated risk, or settle for way, way less than you deserve.   Look, I’ve got this friend from childhood from when I lived back in Pennsylvania. Nice guy, nice family.    He became a public school teacher - math teacher. And today, I see his posts on Facebook more often than I see him.    One of the things that he commonly posts about are that he complains about how public school teachers aren’t treated well because he has disappointingly low pay.   And I see a lot of his teacher friends commenting on his posts, lamenting about the fact that they have low incomes, and have to take second jobs in the summer or whatever.   Well, after seeing a lot of these posts, I commented with an actual SOLUTION to the problem one time. My comment was something like - and here’s what I wrote:   “Many teachers that I know make $500K to $1M per year and they have great control of their time.” That’s what I wrote.   You should have seen their reaction. My friend and the other teachers on that thread were asking me how this could be - some of them even direct messaging me.   And I said, these well-paid teachers are online teachers. Yeah, they wake up each morning and see how many video course subscriptions they sold overnight.   You should have seen their reaction to that - they were quickly uninterested.    That sounded scary. That didn’t meet conformity.   Now, I’ve got nothing against public school teachers. In fact, I appreciate what they do.    But you can see how much fear there is … with going out on a limb.   See, when you try to provide a SOLUTION to people’s problems, they’d usually rather stay small, stay secure, and keep settling - staying inside that 100% certainty smaller life circle.   Do you think that a public school teacher would agree that their 12-year-old student should be a lifelong learner? Yeah, they probably would.   But is that public school teacher being a lifelong learner themselves if they won’t provide a better life for themself by learning some new online teaching and internet marketing skills?   Everyone wants change. But no one wants TO change.   This is not about condemning people for being employees. It’s about removing that wall between you and what you want.    Because look, you might be a highly compensated employee that WANTS to teach public school math or English to 12-year-olds.   But you can’t afford to make the, say $55,000 a year that a teacher makes.   Building a second income with something proven like real estate softens that financial blow, and it lubricates that transition to doing what energizes you - teaching English to 12-year-olds.   This way, you’re a teacher, but you’re not dissatisfied that your salary is low - because teaching isn’t where you started - and now you’re probably more valuable to 12-year-old students because you are where you really want to be.   The riskiest thing you can possibly do is stay safe and take zero risks because then, you virtually guarantee that you’ll never get the life that you could have had.   Residual income gives you the ability to leverage time - and also provide some physical possessions. I don’t think there’s anything wrong with some materials stuff.   Even if physical stuff isn’t what life is about, it can help you facilitate your best life. Even a simple hiker would like a nice, comfortable backpack, tent, and a sleeping bag.   Some people say they want to “live frugally” but, they only say that because they’ve been conditioned and they don’t know HOW to live better.   When people say, “I want to live frugally”, often, what they really want to say is: “I’d like to live well”.   Like I’ve said elsewhere, the great conundrum of modern society is that …   … people spend all this time learning about how work works … and zero time learning about how money works.    Yet money is the main reason that they even go to work. Hmm. Can you believe that.   Even if you’re one of the fortunate few that doesn’t want a substantial life change, adding a monthly stream of real estate income on top of your current situation sure won’t hurt you.    Investing in real estate myself - ihelped ease my transition from a day job - to doing things like this show - creating value for people in the way that I want to do it.   I invest in - especially this WORKFORCE type of housing - myself.   Earlier today, I talked about some of the economic and demographic “whys” about these modest but decent rental single-family rental homes and small apartment buildings that we so often favor here.   As the American family size continues to shrink and birth rates fall, people want smaller SFHs.    Think about how people live. Smaller family sizes are a trend away from McMansions.    Millennials and Gen Zers are also environmentally conscious. That’s the future, where there’s been this spurning of extravagance.   That’s why these low-cost rental single-family homes are in such demand. In fact, a recent report by economic research consultancy Capital Economics shared a stunning statistic: The number of vacant single-family homes … for sale … priced under $250,000 has halved since 2012. Yes, there are only half as many available now as then. In fact, according to the report, there are only 550,000 vacant homes on the market priced under $250,000. That’s half as many as there were just eight years ago. That’s astounding. When there’s a downturn, people will move from the $2K-$3K rent homes into yours where they pay $1,000-$1,500.   In fact, I just bought two more of these single-family rental homes last month myself. One was $150K and the other about $130K.    And I bought them from GREturnkey.   And you know, if you’re on the edge with your next move, and you don’t know if you should invest in a property or more education … and you’re trying to decide between the two ...    As long as you’ve got a little education, I’d err toward you putting another “property” in your portfolio - or your first property.   Why is that?   That’s because when you buy a property, you get a substantial education about it from the inside.    Buying and owning is the REAL world education that any classroom simulation can’t replicate.   Owning property gives you education …   … but more education alone doesn’t give you more property.   So here, we both teach a man - or woman - to fish AND give you a fish. We do both.   GREturnkey.com is where I’ve done my own property buying for years - including where I purchased these most recent two.   Go there, read a couple reports in some markets that interest you, and get some property under contract.   Over there, right now, I can tell you that:   In Alabama - Birmingham and Huntsville has been furnishing income property pretty actively.   In Ohio, Dayton has been bringing inventory to the market that exceeds a 1% rent-to-value ratio, meaning that you get more rent income per invested dollar there than nearly anywhere else.   Further south, Memphis and Little Rock have similar profitability to Dayton - and there are some really low price points in Memphis if you’re just looking to get started.   Then, Jacksonville has brand NEW construction turnkey property and actually have investor houses available now. Lower cash flow there but brand new.   Then, in Tampa, Florida, you can get a little cash flow and the Tampa-St. Pete metro was the 2nd-highest appreciation market in the nation at 5%.    Yes, year-over-year, Tampa was 2nd … and you can get cash flow in the submarkets north of there.   Tampa has been furnishing, oh, maybe 4 or 5 turnkey properties onto the market each month.    And, see, as noted, inventory is tight nearly everywhere.    In Tampa, you’re looking at something like $1,200 of rent income for a $150,000 property.   At GREturnkey, Chicagoland has an interesting dynamic. Where you’re investing in Chicago’s suburbs of northwestern Indiana.   That way, you get the proximity and economic diversification of a world-class city like Chicago, yet being on the Indiana-side of the state line gives you property taxes that are less than half of that than if you were on the Illinois-side.   Everything I’m discussing here is designed for OUT-of-the-area investors … like me and probably like you too.    It’s turnkey … meaning that the property is fully renovated, under a property manager’s management, and often even occupied with a tenant on the day that you buy…   … so that you’re enjoying that mailbox money … or ACH bank draft money as it might be.   You can find all those providers and more at GREturnkey.com   A big thanks to, well Mark Twain for some inspiration today.    “Why not go out on a limb? That’s where the fruit is.”    I’m back next week with Tom Wheelwright.   Until next week, get started at GREturnkey.com   I’m your host, Keith Weinhold. Don’t Quit Your Daydream!  

Larry is the Chief Financial Officer of Next Level Investments LLC. Next Level Investments mission is to help the community of Hampton Roads create and sustain generational wealth through real estate investing. Larry has over 10 years of accounting, tax and auditing experience as a CPA. He brings over 4 years of real estate experience and has closed on multiple deals consisting of single-family and multi-family properties. He is a proud father of 2 handsome sons, Larry III and Wesley, and husband to a beautiful wife and mother, Whitney. Takeaways -Started investing in 2016 with SFHs and flips. Had mild success but got the investing bug when he bought a SFH using a 203k loan and saw tremendous potential for cashflow. -Factors in 30-35% reserves for smaller properties -Having set Rules of Thumb allows you to quickly analyze a property and maximizes your time -When talking to the individual investors, Larry asks about their expected returns. Some people are satisfied with 5-6% and others want 12-15%. -Best Investment: Quad in Norfolk purchased through an Auction. Lessons: Can't force the deal to work and have to stick to your numbers; delegation is key to building an efficient and effective process Worst Investment: First flip. Lessons: came in overbudget, took a year to flip but was able to return all his investors' money; stick to the task you are uniquely suited to do, you can't do everything yourself   Snapshot Round: What is the number one thing you need as a new investor to get started? Education. Without it, you don't have the basis to truly understand where the capital is coming from, how to structure the deal, how make a proper offer on a deal, what returns you will get, etc. What is one nugget of investing knowledge you want to give us? Real estate is a people business. Having the proper team in place. Partners, sellers, tenants are all people and knowing how to be a genuine person is key. People first. What is your dream? Teach Financial literacy through real estate.  Contact Larry: Instagram: https://www.instagram.com/big_oak_va/ Website: https://nextlevelinvestmentsva.com/

How do you come back from losing $50M? Rod Khleif had achieved incredible success as a real estate investor, building a portfolio of SFHs and apartment complexes that grew his net worth by $17M in 2006 alone. And then came the crash. So, how did Rod recover and revive his real estate career? And what did he learn about finding true fulfillment along the way? Rod combines his passion for real estate investing with his personal philosophies around goal-setting, envisioning and manifesting success as one of America’s top multifamily investment and high-performance life coaches. Rod is an accomplished entrepreneur, building several multimillion-dollar businesses and developing a real estate portfolio of 2,000-plus properties. He is also a community philanthropist, founding the Tiny Hands Foundation, an organization dedicated to improving the quality of life for children in Sarasota, Florida, and the surrounding areas. On this episode of Founders Club, Rod joins Oliver to share the goal-setting system that helped him recover from losing $50M in the crash and explain what drew him back to real estate in the last couple of years. He offers an overview of the apartment buying process, explaining how to choose the best properties and markets for multifamily. Rod also walks us through his five-step weekly planning process for prioritizing what’s really important. Listen in for Rod’s advice to would-be apartment investors and get inspired to achieve true success and fulfillment! Key Takeaways [0:53] The goal-setting system that helped Rod recover from the crash Brainstorm list of everything you want in life Make it measurable (# of years for each item) Pick juiciest goal + top 3 for year on new sheet Write paragraph re: WHY each goal is a MUST Collect pictures and visualize things you want Journal on qualities necessary to achieve goals [23:46] How Rod overcame depression after achieving his big goal Vision for future, other goals lined up behind Remove focus on self by giving back (e.g.: feed families) [29:59] Rod’s 5-step weekly planning process Celebrate what got done Journal to capture magic Single page of declarations (top areas of focus) Must-do tasks for this week Block time for things get further faster [42:55] What drew Rod back into multifamily real estate Ability to scale faster Easier to buy than SFH ‘Team sport’ [45:30] Rod’s overview of the apartment buying process Decide between residential and commercial multifamily Build team (brokers, property managers, bankers, etc.) Align with investors with resources Brand self through LLC, add value on social for reach Educate self around joint venture vs. syndication deals [57:56] Rod’s advice around the best properties to invest in Look for B and C properties in A and B areas Add value to force appreciation [1:02:57] What Rod looks for in an area to buy multifamily Growth in population, income and jobs Research on Best Places or City-Data [1:05:29] Rod’s take on the current multifamily landscape Hard to find good deals right now Best time to learn, market correction yields opportunity [1:07:23] Why Rod recommends specializing in one market Must know what people want to be competitive Learn business in one location before expand [1:10:18] Rod’s favorite tech tools for real estate investing Slack + Asana to communicate with team, manage projects Maximize social media to add value for potential clients [1:11:20] Rod’s advice for aspiring multifamily investors Learn the business Take action Connect with Rod Rod’s Website Lifetime CashFlow Through Real Estate Investing Podcast Multifamily Community on Facebook Multifamily Bootcamp Tiny Hands Foundation Books by Rod Connect with Oliver Big Block Realty Oliver on Facebook Oliver on LinkedIn Resources Tony Robbins Grant Cardone Dale Carnegie Tom Hopkins Zig Ziglar Fiverr Upwork The 10X Rule: The Only Difference Between Success and Failure by Grant Cardone The 5 Love Languages: The Secret to Love that Lasts by Gary Chapman Rentometer Rentbits Apartments.com Zillow Craigslist Best Places City-Data Glenn Gonzales on Lifetime CashFlow EP207 SpotCrime Asana Slack

Keith Weinhold says the word of this real estate era may be: “supply”. Why? The U.S. just hit its lowest rental vacancy rate in 35 years: 6.8%.  Also, the U.S. just hit its lowest homeowner vacancy rate in 40 years: 1.3%. Mortgage interest rates just fell to near three-year lows. U.S. existing median SFHs now a record $279,600.  Year-over-year appreciation is 4.3%. Regulation and environmentalism increase real estate prices. Join our Tampa Real Estate Field Trip at RealEstateFieldTrip.com Next, Daren Blomquist of Auction.com joins Keith to discuss current U.S. trends in: Foreclosure activity. Home price appreciation. Migration trends. Foreclosure activity is down due to high employment, more exotic loans now “rooted out of the system”. 91-92% of metros Daren studied are appreciating in value. Net migration winners include: Florida, Texas, Tennessee, The Carolinas, Georgia, Washington, Arizona, Nevada, Colorado.  Net migration losers include: New York, California, Illinois, Louisiana. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: Daren Blomquist: Auction.com Heat Map: Home Appreciation  Heat Map: Net Population Migration GRE’s Tampa Field Trip: RealEstateFieldTrip.com Mortgage Loans: RidgeLendingGroup.com Turnkey Real Estate: NoradaRealEstate.com eQRP: Text “QRP” to 72000 or: TotalControlFinancial.com By texting QRP to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel. JWB New Construction Turnkey: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation

Single-family homes are today’s hottest rental type - both Realtor.com and John Burns RE Consulting agree. Boomers don’t want the responsibility of homeownership, and also don’t want to live in an apartment. This makes SFHs the hottest rental. Rental demand has shifted to basics: affordable, fewer amenities, better school districts. Suburban markets should see the concentration in future growth. Seth Williams of REtipster.com joins us to discuss the best real estate investing websites and apps. We also discuss self-storage facilities. Apps and websites: DealMachine helps you find deals. DealCheck helps you analyze deals. TenantCloud helps you self-manage rentals. BombBomb is a video e-mail service. Trello and Slack for workflow. Blinkist condenses books. RentOMeter estimates rents. Dropbox and Google Drive manage files. Evernote stores notes. DocuSign for digital contracts and signatures. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: Seth Williams: www.REtipster.com seth@retipster.com Article: Hottest Rentals Are SFHs Website & Apps Discussed: DealMachine DealCheck TenantCloud BombBomb Trello Blinkist RentOMeter Dropbox Google Drive Evernote DocuSign Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey Real Estate: NoradaRealEstate.com QRP: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold  

Today we chat with Joseph Gozlan based out of Plano, TX. Joseph is a former IT professional who has turned full time investor. He got his start with single family rentals and kept working hard to save and pick them up one at a time. He did this for many years until he realized he could only go so far with SFHs and to scale his business he would have to look at larger properties. That's when he made the decision to get into multifamily investing. Today he talks about how he made the transition to commercial deals and how this eventually lead him to leave his IT job and become a full time investor. 

#229: Holy shift! Mortgage rates have hit their lowest level in a year. 5.5% interest rate and a 20% down payment for an income property are today’s terms. 740 credit score gives you the best rates. Beyond your first 10 properties (single) and 20 properties (married), there is NO LIMIT on the number of properties you can buy (SFHs to four-plexes). Though after 10 single / 20 married, your interest rate will be higher, though not by much. Learn from Ridge Lending Group CEO & President Caeli Ridge about what you need to qualify for an income property loan today. We discuss your DTI: debt-to-income ratio. I give an example of how to determine yours. Want a cash-out refinance of your income property? 75% LTV for SFHs, 70% LTV for 2-4 unit properties. Learn about why today’s smart money often buys 1-4 unit properties rather than larger apartment buildings … … it’s the safety & stability of 30-year fixed loans. Remember, last month on the show, Jim Rogers told us interest rates will go much higher over the long-term. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Resources mentioned: Mortgage Loans: RidgeLendingGroup.com Find Properties: GREturnkey.com Cash Flow Banking: ProducersWealth.com Turnkey Real Estate: NoradaRealEstate.com QRP: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold  

#222: Learn how to reduce vacancy and turnover cost in your property. Nationally, the rental vacancy rate is between 7% and 8%. If you increase occupancy from 90% up to 94%, that’s just 4%. But this could boost your CASH FLOW 20%. Increase occupancy by avoiding properties with functional obsolescence. Avoid high turnover cost by owning 1,500 sf single-family homes, not 2,800 sf homes. Learn more about investing in northwest Indiana’s 1% rent-to-value ratio turnkey property at www.GetRichEducation.com/Chicago Learn how to fit the property to the tenant. Find the best questions to ask both turnkey sellers and property managers. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Listen to this week’s show and learn: 02:52 How to find area vacancy rates. 04:01 How to reduce vacancy with your lease agreement. 05:18 Importance of occupancy. 09:45 How to start right. 10:50 Avoiding functional obsolescence. 13:42 Avoiding larger SFHs. 18:18 Remodeling trends. 20:45 Handling late rent payments. 22:30 Tenant-property fit. 26:22 Best questions to ask a turnkey seller. 28:56 How to interview a Property Manager. 35:16 Geographic arbitrage in northwest Indiana, “Chicagoland”. Resources mentioned: Connect with provider: GetRichEducation.com/Chicago Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey RE: NoradaRealEstate.com QRP: TotalControlFinancial.com Find Properties: GREturnkey.com

#221: You will be impacted. Learn the latest in rent increases, interest rates, affordability, inflation, asset values, tariffs, institutional money in real estate, the “Build-To-Rent” trend. Learn why large companies raise rents faster than “mom-and-pop” investors like you. Russell Gray of The Real Estate Guys and I share what we discovered at prominent conferences this month. He co-hosts the amazing Investor Summit At Sea. I’ve attended this unique, world-class real estate investing event. Get event details. Send an e-mail to: gre@realestateguysradio.com It could be the best investment that you make in 2019. __________________ Want more wealth? 1) Grab my FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________ Listen to this week’s show and learn: 02:22 Tariffs effect on you. 05:48 Affordability. 09:05 Interest rates, inflation. 12:55 Small, but higher yields on savings accounts, CDs. 18:12 Institutional investors’ impact on you. 26:55 The “Build-To-Rent” trend in SFHs. 28:55 Buy vs. Rent your primary residence. 30:18 The special and transformative Investor Summit At Sea. 35:43 You could sit at a small table with Robert Kiyosaki. Resources mentioned: Investor Summit At Sea ShadowStats.com ChapwoodIndex.com Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey RE: NoradaRealEstate.com QRP: TotalControlFinancial.com Find Properties: GREturnkey.com  

The "BRRR" strategy works great for many investors.  Buy it, Rehab it, Rent it out, and Refinance (BRRR) can be a great way to build your portfolio and build cash flow.  But sooner or later, many of us realize that this is a very slow way to become financially independent. Chandler Spence reached this Pivot Point while investing in Single Family Rentals in Nashville, Indianapolis, Baltimore, and Chicago.  That's what led him to look into investing in airbnb properties, starting with renting out his own basement. Today we discuss Chandler's ability to build teams remotely, the red flags to look for with your rehab team, and why you should always check out the property before you buy. We'll also discuss his experience with airbnb investing: how he's automated his business, the technology and tools that simplify the process, and the new frontiers in airbnb investing he sees happening around the country. There's a ton of great information in this episode.  You can get in touch with Chandler through email or his website: chandler@spencelegacy.com https://www.spencelegacyholdings.com/contact    

#202: $108,000 was my highest salary from my day job. I discuss. There’s high housing demand and low supply. Then why are homebuilders slowing down? You get answers. SFHs comprise 30-35% of all U.S. rentals. 90% of rental SFHs are owned by “mom & pops”. Learn how to exploit real estate’s geographic arbitrage. How are you living? Metaphorically, are you using water buckets or a sprinkler system? Meet me in-person at the New Orleans Investment Conference, Nov. 1st to 4th. I made an infographic to send you: “The 5 Ways Real Estate Investors Get Paid”. _______________ Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 02:12 Supply vs. Demand and “Capacity To Pay”. 03:59 Homebuilding slowdown. 10:40 SFHs comprise 30-35% of all rentals. 90% of rental SFHs are owned by “mom & pops”. 13:02 Geographic arbitrage. 16:39 Water Buckets vs. Sprinkler Systems. 19:06 Security vs. Freedom. 23:48 Meet me in-person in at the New Orleans Investment Conference, Nov. 1 - 4th:  https://goldnewsletter.com/wp-content/uploads/2018/07/NOIC_2018_GRE.html 27:32 Infographic: “5 Ways Real Estate Investors Get Paid.” Resources Mentioned: Reuters: Home Sales Sag, Prices Rise Meet Me In New Orleans, Nov. 1st - 4th Book: “How To Be In The Top 1%” Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Turnkey RE: NoradaRealEstate.com QRP: TotalControlFinancial.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book

#176: Stock investors are not getting ahead, but they think that they are. 10% return, minus 5% inflation, minus 2% fees, minus taxes, minus volatility, minus more. Most methods of valuing an income property are lousy. I tell you the good and the bad methods: price per square foot, price per unit, RV ratio, Gross Rent Multiplier, Cap Rate, Cash-On-Cash Return. I tell you how to avoid overpaying for property by making your offer contingent on seeing the seller’s “Schedule E”. The bustling Charlotte, North Carolina real estate market is discussed. It is growing at an enormously fast rate. Learn about using IRAs and 401(k)s for buying real estate, and leverage vs. paying all-cash for property. Want more wealth? 1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2)    Actionable turnkey real estate investing opportunity: GREturnkey.com 3)    Read my new, best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 01:06  Why stock investors aren’t getting ahead. 04:17  Real estate performs. 06:27  Mortgage interest rates are up, Fed Chair change. 07:26  How to avoid overpaying for property. 09:50  Income, expense, and financing gears. 10:03  Price per square foot, price per unit, RV ratio, Gross Rent Multiplier. 11:49  Cap Rate vs. Cash-On-Cash Return. 17:35  Avoid overpaying with Schedule E. 22:45  Charlotte, North Carolina’s rapid growth. 25:12  More appreciation, less cash flow. 29:11  Typical property is an SFHs, $100K-$120K rents $1,000+. 31:02  Using IRAs and 401(k)s to buy real estate. 35:08  Leverage vs. paying all-cash. Resources Mentioned: GetRichEducation.com/Charlotte RidgeLendingGroup.com ValhallaWealth.com GREturnkey.com GetRichEducation.com  

#150: Giant mistake: investing in real estate only in your home market. You should be invested in at least 3 different geographic RE markets. This also how you can get a good mix of appreciation and cash flow over time. Volatility hurts your portfolio more than you think. Keith discusses two reasons why you will be in a more volatile environment in coming years: 1) Donald Trump, 2) Interest rates. Even if your home is paid off, you still have a payment. It’s an opportunity cost payment. You aren’t aware of it because you can’t see it. Do you live below your means or do you expand your means? Keith gives several real-life examples. You just can’t shrink your way to wealth. Keith brings you today’s show from Anaheim, California. Want more wealth?   1) Grab my free newsletter at: GetRichEducation.com     2) For actionable turnkey real estate investing opportunities: GREturnkey.com   3) Read my new, best-selling book: GetRichEducation.com/Book Listen to this week’s show and learn: 01:28  Volatility hurts you: 1) Donald Trump. 2) Interest rates. 05:16  Diversify: invest in RE in at least three metro markets. 07:37  ROTI: Return On Time Invested. 09:24  Invest between the Appalachians and the Rockies in SFHs just below the median purchase price. 11:00  Appreciation vs. Cash Flow. 12:07  How will 10 SFHs move you toward financial freedom? 17:48  Even if your home is paid off, you still have a payment. 20:24  “Live where you want to live and invest where the numbers makes sense.” 21:50  Tax-friendly states. 23:32  Examples: Living Below Your Means vs. Expanding Your Means. 28:51  When does your life really begin? Resources Mentioned: Article: How To Turn $100K Into $300K In Five Years Article: You Can’t Shrink Your Way To Wealth RidgeLendingGroup.com NoradaRealEstate.com MidSouthHomeBuyers.com GetRichEducation.com GREturnkey.com

#155: Do what Amazon does. That is what you are doing when you invest passively in income property. But it’s easier than building a business like Amazon.  Like Amazon Prime, your RE portfolio has a recurring income stream. Amazon provides society with non-discretionary items like household goods; RE investors provide society the non-discretionary household itself. Today’s guest, Abhi Golhar of Real Estate Deal Talk, emphasizes why cash flow is king today. He is exiting many flips in order to purchase cash-flowing SFHs and multifamilies. He tells us why. Abhi talks about “Rich Dad, Poor Dad”, how to select a mentor, and much more. Abhi and I discuss real estate trends via geographics, demographics, and psychographics. Want more wealth?   1) Grab my free newsletter at: GetRichEducation.com     2) For actionable turnkey real estate investing opportunities: GREturnkey.com   3) Read my new, best-selling book: GetRichEducation.com/Book Listen to this week’s show and learn: 00:50  Real estate investing is like Amazon’s success model, only easier. Here’s why. 04:38  “Rich Dad, Poor Dad”. 07:42  Buying and selling cars on eBay. 10:13  Following and choosing mentors. 18:37  The durability of real estate as it relates to caring for your body. 21:22  Freedom. 23:11  Real estate appreciation the last 5+ years. 26:34  Real estate geographics, demographics, and psychographics. 33:22  Abhi is exiting flips and purchasing buy-and-hold income property. Cash flow is king. 35:26  Responding to listener feedback, Get Rich Education’s new episodes will begin publishing four days sooner: Mondays hereafter, rather than Fridays. Resources Mentioned: RealEstateDealTalk.com RidgeLendingGroup.com NoradaRealEstate.com MidSouthHomeBuyers.com GetRichEducation.com GREturnkey.com

If you don’t believe that being consistent and doing something towards your goals everyday, can pay off big in the long run, then you haven’t heard this episode. Kevin came to the states and had no investment properties here to start. He and his wife worked consistently on acquiring and managing properties. After 12 years of hard work, they own over 1,000 units all cash flowing. To hear a first hand example of what consistent work can do, hit play on this episode. If you enjoyed today’s episode remember to subscribe in iTunes and leave us a review!   Best Ever Tweet: “Within a year of the new property manager, our gross potential income went from $380,000 to about $460,000” - Kevin Dhillon   Kevin Dhillon Real Estate Background: Australian real estate investor, who has been actively investing in real estate for the past 12 years He and his wife Daniella have acquired 1,015 multifamily units, totaling over $57M Experience in real estate strategies of owner financing, developments, value-add projects, and syndication Currently own 1,015 rentable dwellings spread between SFHs all the way to a 192 unit community Based in Houston, Texas Say hi to him at Best Ever Book: The Bible Join us and our online investor community:   Made Possible Because of Our Best Ever Sponsor: Are you committed to transforming your life through real estate this year? If so, then go to to apply for his coaching program. is my real estate, business, and life coach. I’ve been working with him for years. Spots are limited, so be sure to apply today!

YouTube Link: https://youtu.be/dSNwXUhxpLEPlease help the show by leaving a review: http://getpodcast.reviews/id/1118795347Download the FREE 2018 Rental Property Analyzer for free: https://simplepassivecashflow.activehosted.com/f/14Pardon the grammar - I'm an Engeneer, Enginere, Engenere... I'm good with math! Here are the Show Notes: $480k horizontal incomePodcast is not simple passive cashflowUsed commissions to invest into real estateStarted out trading tome for money, working 40 hours a week, and was left with a $100 every weekSold timeshare presentationsDanny got 3-4 of these a day and was the leader at the time and Pat beat himWent to college and went to real estate sales where he is making commissionsDiscovered horizontal lines - bought SFHs and moved to apartments and other buildings/businessesLost 2/3 of initial investment LTI - After you pay your bills - currently $200K a yearMoving around current investments18% lawyer loan, some private equity notes, apartment building syndicationCrossed over at age 46 to financial freedom numberWorks 3 days a week (Tuesday-Thursday)Chose to not work as much in 40sLook where the poor creative lives because that is where the transitioning area isRobert Kiyosaki says don't buy where there are craneAlchemist talks about the beginner's luck - Pat started investing in non-real estate investments in 2008 - 50-100K here and there and 50% of them failedRip and duplicate things that are workingReal estate rockstar podcast! See acast.com/privacy for privacy and opt-out information.

YouTube Link: https://youtu.be/dSNwXUhxpLE Please help the show by leaving a review: http://getpodcast.reviews/id/1118795347 Download the FREE 2018 Rental Property Analyzer for free: https://simplepassivecashflow.activehosted.com/f/14 Pardon the grammar - I'm an Engeneer, Enginere, Engenere... I'm good with math! Here are the Show Notes: $480k horizontal income Podcast is not simple passive cashflow Used commissions to invest into real estate Started out trading tome for money, working 40 hours a week, and was left with a $100 every week Sold timeshare presentations Danny got 3-4 of these a day and was the leader at the time and Pat beat him Went to college and went to real estate sales where he is making commissions Discovered horizontal lines - bought SFHs and moved to apartments and other buildings/businesses Lost 2/3 of initial investment LTI - After you pay your bills - currently $200K a year Moving around current investments 18% lawyer loan, some private equity notes, apar

Text “simple” to 314-665-1767 to get access to the Hui Google Drive files and the website/podcast via email.Text “deals” to 314-665-1767 to join the Hui Deal Pipeline Club and get in on the dealflow!Show notes:Mobile home investorHis business is not simple or passivedid no go from a career to REIStarted when was 19 years oldStarted buying SFHs and 2008 changed things and made Kevin RebuildMFH was not scaleableThen was introduced to mobile home parksEveryone should start smaller to learn about working with tenantsAnti turnkey rentals 1) based on comps 2) buying retailsCap rates are only important on the saleOnly look at cash on cash return (not IRR)used 35% expense ratioWork with the broker to come to a price - can you help me understand?MHP have 50/50 LP GP splits where MFH has a little high 70/30 split40K a year and under, people making 12-15 dollars an hourExcercise is the success tip See acast.com/privacy for privacy and opt-out information.

What's Better: buying rentals in one area or multiple areas?This Session talk about some of the dis/advantages of each option and may present aspects you did not think about. Plus we took some Qs from you about selecting areas, SFHs vs large properties, and what do I think of the $50k house. Enjoy and Learn

Hey guys I’m about to get naked here… I am personally making a shift in my portfolio to MFH syndications and wanted to see if you could help me find a buyer for my stabilized 10 property 1.2M portfolio.. 10 B Class properties in Birmingham/Atlanta/Indy (rents $900+/month)I have selected a few potential turnkey rental sellers, however, I wanted to leverage my network and see if we can cut the broker commissions out of it. I’ll give you details on how you can get the P&L for the past few years on every property but first...A few PSAs.National Save for Retirement Week: October 15 – 21, 2017Scam emails to get information from more and more wholesalersInsurance want 5% deductibleMy story - bought a couple of rentals in Seattle and 1031 exchange those to 10 SFH essentially turnkey rentals out of state in Atlanta, Birmingham, Indianapolis.The other day I asked the question on BP… did not get much of a response since BP is a platform for newbies or active investors who flip or wholesale homes. SPC is a platform with secret Facebook groups of profession W2 employees with some cash and little time on their hands.https://www.biggerpockets.com/forums/223/topics/481347-crossover-point-for-turnkey-rentals-vs-syndication-as-a-passiveAs I talked a few podcasts ago of a 10k repair, and multiple other headaches, my attitude for these SFHs are changing. Its kind of funny talking to the many of you that are setting up calls to get on the Hui Deal Pipeline Club to getting sent the deals I come across:https://simplepassivecashflow.activehosted.com/f/3Please go through the first 20 podcasts in early 2016 and love the story of this SFH buyer but then they are like WTF you are turning on us like a villain going to MFH."Find me an investor who has 50 SFHs and I will show you an investor who was invested under a rock and stoned himself to death with said rock" -ArchimedesAfter over a few hundred investor consultants over the past couple years here is what I tell W2 employees. For those who are able to save more than $30k a year or have substantial liquidity (over 200k), being a landlord and especially flipping is a lot of work. If you like it cool... but just remember why we got into this... To be free from a JOB. Directly investing in a turnkey rental or small MFH is a good way to start to learn and build up the war chest to go into my scaleable investments such as private placement syndications. Whatever you do, try to be as close to the investment as possible. This is the fundamental problem I have with Wall Street who takes too much fees off the hard working efforts of the middle class.The straw that broke the camels back...One of my Atlanta properties went over a changeover, tenant went MIA, went through process to evict - always start the time clock. Armed sheriff had to go and remove items on the street, dead cats were found, $5000 just to remove items, concern over the property could have been condemned. I got Proserve out of Atlanta to go in with radiation suits to clean it up, got a bill for $27K, wtf, some of the scope items were a little ridiculous like 500 dollars for gutters, 5000 for paint, and siding etc. I had them re-estimate it to give me the "dude I'm not a rich idiot price and got it lowered to 20K.There is no such thing as turnkey. Check out these disaster photos… https://photos.app.goo.gl/R4PZLuOLGHONO5Rl2Tony Robbins says “Things don't happen to you but for you.”This was a sign from above which many of you guys hear from me that I sort of believe in. I was already mentally making the shift to making the move. Going down the quote from the repair company it was clear that a lot of the scope items were a bit excessive and the pricing was inflated. This was to be expected, for example paint on rooms that did not really need painting for $5000 or new gutters cleaning for $500.If you want to see this document. Please leave me an iTunes review or send me an email referral to a friend and i'll send it over. Lane@SimplePassiveCashflow.comStages of trauma… denial, anger, sadness, motivation.What I know now I am able to now only make a high yield but a fraction of the effort. None of this screwing around sending docs to my lender in the evenings for a couple months to get one dinky SFH to cash flow a couple hundred dollars a month then do it all over again 20-50 times… then to have it all taken away with a large capex or turnover repair.Tony Robbins says “You destiny is shaped in your decisions.”We waste so much time making decisions. A lot of people myself included get shiny object syndrome when really its an excuse.This was my hero moment or burning of the boats moment to leave the security of a few thousand of passive cashflow a month to go liquid for a while. Hopefully Amazon will announce that Atlanta will be the new second HQ on their quest for world domination.One drawback about selling is about repaying a lot of depreciation recapture and capital gains going back all the way from 2009. As you remember I traded my two Seattle properties for the majority of these rentals via a 1031 exchange. This is why I am not a fan of a 1031 exchange no matter what you hear on a surface level on other podcasts. Another reason to keep listening and please do me a favor and share it with friends because we go deep on this stuff because I’m learning everyday. I’ll repeat I don’t like 1031 exchanges because many of us are going to graduate in large syndications and that is not a like kind exchange. Executing a 1031 most likely means you are going into a lukewarm deal and lose all your negotiation power as a buyer. But i'll expand on this at a later date.Picture of my back of envelope tax hitI want to be very clear… If you are not an accredited investor, sophisticated, or have a large sum of liquify... single family homes is the starting point for you. Too many call me with lofty goals and have list of pro’s/con’s of MFH vs SFH, but you need to know the basics before you screw up the big stuff. You have to pay your dues. Set that barrier to entry lower because most people won’t do anything.That said for a limited time I invite you listeners to make offers on my portfolio of SFHs “Lane’s Pac-10”. List price is 1.2M right about 1% Rent-to-Value Ratio (More info -http://simplepassivecashflow.com/podcast-3-rent-to-value-ratio/). Will need you to make sure you sign up for my Hui Deal Pipeline Club:https://simplepassivecashflow.activehosted.com/f/3I figure it was only fair if I showed you my naked photos… I mean P&Ls that you take a few minutes to complete a form with your investor profile on.And if you are listening to this after 2017 and would like to see how frequency of rental checks, vacancy, late payments, repairs, cap ex across all my properties please leave me an iTunes review or send me an email referral to a friend and i'll send it over.Lane@SimplePassiveCashflow.comMastermind Club: If you or someone you refer invests at least $50K into one of my future deals you will be invited to my exclusive Ali'i Mastermind with other 12-20 other serious investors to discuss deals and our own portfolios.Check out my Free Resources Below:1) If you are an accredited investor and afraid of the impending market correction?Get out the stock market and into the Simple Passive Cashflow Hedge Fund!More info: www.SimplePassiveCashflow.com/fund 2) Join a Social Club:Seattle Social ClubHawaii Social ClubPortland Social ClubBay Area Social ClubSo Cal Social ClubEast Coast Social ClubCentral USA Social Club 3) Subscribe to my podcast: Google Android Phones | Apple iPhone | Youtube 4) Once you have gone through the majority of podcasts feel free to sign up for a chat:20 Minute Chat with Lane 5) Make sure you sign up for my Hui Deal Pipeline Club to get sent the deals I come across. 6) I am partnered with a start-up Virtual Assistant firm out in the Philippines. Shoot me an email Lane@simplepassivecashflow.com if you want to try them out.More info: https://drive.google.com/open?id=0B4gFjCt6Knc1U3YwYjdZRnYzN1k 7) Please leave a review for the podcast! 8) Coaching Program to get you to your first rental in 90 days! 9) And finally... if you are just getting started Sign-up for Free access to the 10 Module Course: 10) Summary of every Simple Passive Cashflow Podcast See acast.com/privacy for privacy and opt-out information.

#140: Keith’s new book is now out in paperback form at: www.GetRichEducation.com/Book. Direct investment in single family income properties has strong demand from both investors and renters. Single-family home (SFH) income property advantages include: they trade independent of market cap rates, stronger appreciation than apartments, inflation protection, amortization, tax depreciation, lower cost, easier financing, more understandable, no shared walls, divisibility, less tenant turnover, and better locations than apartments.    Today’s guest, HassleFreeCashFlowInvesting.com’s David Campbell helps Keith break down single-family investing advantages. Grab Get Rich Education’s new book at GetRichEducation.com/Book Want more wealth? Visit: 1) www.GetRichEducation.com to grab our free newsletter.  2) www.GREturnkey.com for actionable turnkey real estate investing opportunities. Listen to this week’s show and learn: 01:15  Ken McElroy in 2017: “It’s a terrible time to buy multifamily in most metros.” 06:23  SFHs trade independent of cap rates. 09:57  Appreciation vs. Inflation. 11:03  SFHs are approachable because they’re lower cost and financing can be easier. 14:52  No shared walls: pests, fires, noise. 15:48  Arbitrage. 18:00  Keep a low equity position for asset protection. 20:17  Divisibility. 20:53  The fallacy of “buying cash flow”. 25:08  Prepaying the mortgage is a huge mistake. 27:55  SFH: no or low utility payments. 29:00  Neighborhood quality. 32:00  Cash flow. 33:51  Income tax-free states. 34:57  Tenant psychology in SFHs. It “feels like their own”. Exit strategy. 36:50  GREturnkey.com has many of the best income property SFHs. 38:25  Ask: “Mr. Manager, what would like to manage?” 40:40  SFHs have less tenant turnover than apartments. 43:10  SFHs is where you typically start. 45:46  “Leaving a trail behind” with 3.5% down payment FHA loans. 48:30  David’s free e-book at HassleFreeCashFlowInvesting.com. Resources Mentioned: HassleFreeCashFlowInvesting.com GetRichEducation.com/Book NoradaRealEstate.com HighlandsMortgage.com MidSouthHomeBuyers.com GetRichEducation.com GREturnkey.com  

In 2012 Lonnie Shields and his wife were driving down the Beltline when their lives changed forever in an auto accident.  Today Lonnie & I talk about that accident, and the role real estate investing has played on their road to recovery. Lonnie shares his thought process in determining to sell off his small Multifamilies in Grand Rapids and invest in Single-Family Homes in a new, less expensive market.  We discuss the 1031 exchange he's currently doing by selling a 5-unit and purchasing 8 to 10 Single Families in Muskegon, Michigan. We also talk about Self-Directed IRA's, and how Lonnie prefers using his SDIRA as a way to invest in two SFHs instead of the stock market, where he was losing money every year.  Lonnie also talks about reconciling his Christian faith with the realities of being an investor and landlord, and the effect it has on his trust in sellers, contractors and tenants. Lonnie is also a big believer in the benefits of being an RPOA member.  If you'd like to learn more about the RPOA, go to www.rpoaonline.org  And please be sure to give this podcast a review & rating on itunes. Enjoy!

Today we speak with a great tag team duo, Mike and Matt, who are based out of Atlanta GA. Both began investing while working full time consulting jobs. However, this past month Mike has taken the leap of faith and left his corporate 9-5 to pursue real estate full time! Together they tell their story of how they were able to team up and build their portfolio. There's a lot of great content and advice from flipping to SFHs to multifamily. Listen in and learn how you can partner your way to real estate success!  

My guest in this episode is Lane Kawaoka. Lane is the host of Simple Passive Cashflow podcast, an avid real estate investor and a full-time W2 employee as a Civil Engineer who got started young with passive real estate investing.  Owns 11 SFHs in Birmingham, Atlanta, Indy, and PA.   As he slowly built his SFH portfolio Lane realized the SFHs was not going to get him to his cashflow goals and he was creating a job for himself to manage the manager.  Today Lane podcasts at “SimplePassiveCashflow.com” to help newbies get into real estate and helps more sophisticated investors get into larger MFH syndications that Lane puts together. Share your thoughts with me on Twitter @mclaubscher and Instagram @cashflowninjapodcast If you have enjoyed our podcast, please share with friends and family Please Subscribe, Rate, and Review on Itunes so more people can find us! so more people can find us! Interview Links: Simple Passive Cashflow Support Our Sponsors Joint Ops Properties, have designed a system to take any beginner to an experienced deal making investor in the least amount of time, offering opportunities from basic education, coaching, bridge investing to turn-key investments in the cash flowing market of St. Louis, MO. www.jointopsproperties.com International Coffee Farms, Sustainable Income Through Offshore Sustainable Agriculture www.internationalcoffeefarms.com Audible, download any audio book for FREE when you try Audible for 30 days  www.cashflowninjabook.com Thanks so much for joining me again this week. Have some feedback you’d like to share? Leave a note in the comment section below! If you enjoyed this episode, please share it using the social media buttons you see at the bottom of the post! Also, please leave an honest review for the Cashflow Ninja Podcast on iTunes. Ratings and reviews are extremely helpful and greatly appreciated! They do matter in the rankings of the show, and I read each and every one of them. And finally, don’t forget to subscribe to the show on iTunes to get automatic updates, please follow me on twitter @mclaubscher and instagram, @cashflowninjapodcast. Until next time! Live a life of passion and purpose on YOUR terms, M.C. Laubscher

"Kenny Wolfe is an apartment syndicator today but it was not always like thatAt 33 years old he left his CFO position and went full time REI2016 might have been the peak (100 deals, 10 look ok, and one offer)5.25% interest rate at early 2017, 1.25 DSCR is a hard underwriting figureAt 24 years old bought and failed at a tanning salonMFH Property Management is much more responsibleTreating investing like a business with an office and professional documentsIf you need a VA I am a partner of a VA firm that offers super qualified staff for a variety of tasks. Get creative and send me an email if intrested in a free 10-hour trial. www.Wolfe-re.com"#LaneHack #JustTheTipLooking for a passive fund that invests in distressed notes?SimplePassiveCashflow is proudly sponsored by www.investinahp.comPlease leave a review? Or Share on Facebook! Please!https://itunes.apple.com/us/podcast/simplepassivecashflow.com/id1118795347Sign-up Here for ‘Hui” Deal Pipeline Club: https://docs.google.com/forms/d/1gulyiaz7_gb8koqGl91bGPz-mdwlBVz-PcvXDOXOL5YJoin a Social Club:Seattle: https://www.facebook.com/groups/SPCHUISEA/Hawaii: https://www.facebook.com/groups/SPCHUI808/Portland: https://www.facebook.com/groups/SPCHUIPDX/Bay Area: https://www.facebook.com/groups/SPCHUIBAY/So Cal: https://www.facebook.com/groups/SPCHUISOCAL/East Coast: https://www.facebook.com/groups/SPCHUIEAS/Central USA: https://www.facebook.com/groups/SPCHUICUS/Once you have gone through the majority of podcasts feel free to sign up for a chat! And be let into the Secret Hui Facebook Group.https://calendly.com/simplepassivecashflow/20Looking for mentorship/turnkey services/apprenticeship/partnership:https://docs.google.com/document/d/1K8jFe2GS6uJ5O3f1z8qNjMsSf6Vk4gH6zbfJjEumIQoSummary of every Simple Passive Cashflow Podcast: https://drive.google.com/open?id=1banG1R0TKhv_ji54tsZMbYJ8iikr9Ib103ZUeYse_ts" See acast.com/privacy for privacy and opt-out information.

#129: Dallas, TX could be the strongest real estate market in the entire U.S. as it keeps experiencing staggering business, job, and population growth. In fact, Forbes has named Dallas, TX as the #1 place to invest in 2017. But if you live outside Dallas-Fort Worth, how do you capture the upside yourself? With turnkey single-family income property. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive turnkey real estate investing opportunities. Listen to this week’s show and learn: 02:50  Texas has had great economic fortune for decades. Geopolitical Strategist Peter Zeihan tells us that this will continue. 04:18  Dallas-Fort Worth’s astounding population growth. 05:16  Why to invest in single-family homes rather than apartment buildings. 09:55  In a hot market, have a relationship with a team that can get housing inventory. 12:03  Competing for housing inventory. Targeting 7%+ cash-on-cash return. 15:31  Product type: SFHs with minimum of 3 BR, 2 BA, 2-car garage. 17:14  Don’t “over-improve.” Examples. 20:30  What type of person invests in turnkey real estate? Busy people. 22:38  In-house property management. 25:58  The economies of scale advantage with contractors. 28:30  Averages: rent income $1,600 and sale price $170,000. 29:51  Investors have one point of contact. 31:18  Management companies propose solutions, not just pose problems. 32:30  April 21-23: Attend the upcoming Dallas Income Property Tour & Workshop. 34:45  High tenant quality. 36:05  Positive cash flow. Resources Mentioned: GetRichEducation.com/Texas Blog Article: Triple Your Equity In Five Years TheRealAssetInvestor.com/GRE HighlandsMortgage.com MidSouthHomeBuyers.com GetRichEducation.com  

#93: U.S. Single-Family Homes rented as income property could be the best investment class on earth today. Here’s why, and here’s how to be strategic about it. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities. Listen to this week’s show and learn: 02:15  Most people mistakenly think “real estate investing” means “house flipping.” 04:06  Keith is now a Contributing Author at Kiyosaki’s Rich Dad Advisors blog. 06:35  The S&P 500 Index recently closed at an all-time high. Who cares? 08:50  Size of the U.S. single-family rental market. 10:15  Demographic demand for SFHs. 12:35  SFHs: low cost, time value of money, liquidity, divisibility, school district. 16:00  Buy in 3-5 geographic markets. 18:42  Good turnkey providers avoid property in “war zones.” 23:04  Recession resistance. 23:42  Condominiums. 24:53  No common walls mean problems are confined. 25:57  Utilities, tenant quality, tenant psychology. 27:46  Autonomous cars and technology. 31:20  Rent-To-Value (RV) Ratios. 32:01  Single-Family Income Property “poetry.”   Resources Mentioned: Keith’s first Rich Dad Advisors blog article CorporateDirect.com NoradaRealEstate.com MidSouthHomeBuyers.com LittleRockTurnkey.com GetRichEducation.com Want a free GRE logo decal? Just write a podcast review. Here’s how at: iTunes, Stitcher, and Android. Send: 1) A screenshot of your review. 2) Your mailing address to: Info@GetRichEducation.com for your decal.

This thesis has focused on observational studies of galaxy evolution. We combine multiwavelength data to derive various physical properties of nearby galaxies. In particular, we study the recent star formation histories (SFHs) of galaxies from their optical spectra, and the relations between molecular gas and star formation of galaxies from their radio, ultraviolet, and infrared observations. First, we constrain the radial dependence of the recent SFHs of about 200 local galaxies with the long-slit spectroscopy data by fitting stellar population models to the combination of specific star formation rate (sSFR), 4000 Angstrom break strength and Balmer absorption lines. The late-type and early-type galaxies show distinct behaviors in their recent star formation histories. In late-type systems, bursts occur both in the inner and in the outer regions of the galaxy. The fraction of stars formed in a single burst episode is typically around 15% of the total stellar mass in the inner regions of the galaxy and around 5% of the mass in the outer regions. On the other hand, bursts occur predominantly in the outer disk in massive and bulge-dominated galaxies, and the fraction of stars formed in a single episode is only 2 - 3% of the underlying stellar mass. One of the most fundamental questions in modern astrophysics is how galaxies convert their gas into stars, and how this process may change with the galaxy internal properties and/or across cosmic time. We study the variations in molecular gas depletion time (tdep), defined as the molecular gas mass divided by the star formation rate (SFR), and which tells us how fast the gas will be consumed under the current SFR. We establish that the main parameter dependence of tdep is upon sSFR on both local and global scales. The strong correlation between tdep and sSFR extends continuously over a factor of 10 in tdep and from log sSFR = -11.5 to -9, i.e., from nearly quiescent patches of the disc to disc regions with very strong star formation. This leads to the conclusion that the local molecular gas depletion time in galactic disks is dependent on the local fraction of young-to-old stars and that galaxies with high current-to-past-averaged star formation activity, will drain their molecular gas reservoir sooner. We further study the impact of galaxy internal structures such as the bulge, arm, bar and ring on the variation of tdep on kiloparsec and global scales. The displacements in the main tdep-sSFR plane for different structures is linked to the variations in stellar, rather than gas surface densities: regions with high stellar surface densities such as the central bulges of galaxies have a reduced tdep at a given sSFR, while regions with low stellar surface densities such as the disk of galaxies have a longer tdep at a given sSFR. We provide our best current predictor for tdep, both globally and for 1kpc grids.