Podcasts about valhallawealth

#178: The media - a FOX News Anchor - asks me about Get Rich Education wealth-building principles. Rather than asking questions, I’m the one being interviewed here. I tell the interviewer why getting your money to work for you will NOT create wealth. In real estate, I tell you why your ROI typically goes down after Year One. How to calculate a real estate rate of return; the differences between poor, middle class, and wealthy; being bold; increasing income, and more is discussed. The interviewer, Clayton Morris, is an experienced real estate investor himself. If you want to buy income property: 1) Start at RidgeLendingGroup.com to see how much property you qualify for. 2) Find reputable turnkey property providers at GREturnkey.com. 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: 03:48  Interview with longtime Fox News Anchor, Clayton Morris begins. 05:00  Be bold. 07:26  Increase income. This is available to anybody - no certification or degree needed. 11:56  My first four-plex, bought for $295,000 in 2002. 14:25  Self management vs. professional management. 16:30  Leverage. 19:01  Why it’s a good time to be a RE investor. 20:39  Lower middle class neighborhoods. 26:42  How RE investors actually get paid five ways simultaneously.   39:32  Why your ROI typically goes down after Year One. Resources Mentioned: RidgeLendingGroup.com ValhallaWealth.com ClaytonMorris.com GREturnkey.com GetRichEducation.com

#177: Are you serving the 40-year-to-life sentence? Today’s guest, Jerry Fetta, is a former Dave Ramsey-endorsed local provider. Jerry learned a better way and changed his life and the lives of others. There’s a more abundant way. You just can’t afford to forgo the benefits of leverage and arbitrage. Jerry is an expert at uncovering how the mutual fund industry manipulates reporting the ROI to their advantage and your detriment. Questions that put your financial advisor on the hot seat are revealed today. We discuss why “tax deferral” is a scam. I simply don’t have time to do 1-on-1 coaching. Jerry is a good friend, lives in my hometown, and he’s offering GRE listeners a free consultation. See if you’re a good fit: GetRichEducation.com/Coaching. 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: 00:41  Mortgage interest rates are rising. Take action. 04:10  I used to be a debt-free, save-in-a-401(k), 15-year mortgage guy myself. 06:45  Jerry Fetta interview begins. 08:42  Jerry is a former Dave Ramsey-endorsed local provider. 11:14  Some things aren’t worth owning. 13:49  Affirmation vs. Information. 15:43  Jerry’s turning point: scarcity to abundance. 19:30  Stocks don’t produce wealth, but few make that correlation. 21:55  How mutual fund rates of return are reported: CAGR vs. AAR. 26:35  Questions to ask your financial advisor. 30:07  Tax deferral is a scam. 34:15  Case study: How Jerry helps a typical client. 39:03  The “passive income epiphany”. 43:24  Maybe someday? Come on. Integrity. 47:08  Engage with Jerry for 1-on-1 coaching free at GetRichEducation.com/Coaching. Resources Mentioned: GetRichEducation.com/Coaching RidgeLendingGroup.com ValhallaWealth.com GREturnkey.com GetRichEducation.com

#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  

#175: The next twenty years will be nothing like the last twenty years. Chris Martenson of PeakProsperity.com tells you where wealth originates. It’s called primary wealth, consisting of things like trees, soil, a fishery, or a rich ore vein. The further you invest from primary wealth, the less real wealth you have. You learn about your 8 Forms Of Capital: Financial, Social, Material, Living, Emotional, Knowledge, Cultural, Time. You also learn about the future of energy. Wind and solar energy are not replacements for oil. I bring you today’s show from Anchorage, Alaska. 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: 00:58  The textbook definition of wealth. 04:05  Primary, secondary, and tertiary wealth. 07:39  Chris tells us why stocks aren’t real wealth. 09:33  Why economies can’t grow to infinity. 12:35  Energy growth limits. Oil vs. renewables like wind and solar. 22:42  The 8 Forms Of Capital: Financial, Social, Material, Living, Emotional, Knowledge, Cultural, Time. 30:10  How to get more Social Capital. 37:40  Holistic wealth. Happiness levels. Resources Mentioned: PeakProsperity.com Chris Martenson’s book “Prosper” RidgeLendingGroup.com ValhallaWealth.com GREturnkey.com GetRichEducation.com  

#174: You actually want to increase your personal expenses over the long-term. What kind of financial blasphemy is this? I explain. You are worth more than you think. I tell you why. If you’re 30 and you live until age 90, you only have 60 more autumns in your life. You only have 7% of your time left with your own parents. Your quality time is valuable and fleeting. Some people have an overinflated sense about the importance of taxes. Rate of return matters more. Returns are like a pie, and taxes are only a piece of the larger pie. If your portfolio is small, do you really need an LLC for your income property? There’s a discussion of appreciation vs. cash flow. I bring you today’s show from the Dominican Republic, where I'm vacationing. 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: 01:16  Over the long-term, you actually want to increase your expenses. 07:19  Why you are worth more than you think. 09:05  Measuring your life in terms of events and relationships. 20:37  If mortgage interest rates go up, rents go up next. 22:15  Rate of return is more important than tax rate. 24:16  Why do you think you need an LLC? 28:07  Real estate appreciation vs. cash flow. Resources Mentioned: Article about expenses WaitButWhy.com RidgeLendingGroup.com ValhallaWealth.com GREturnkey.com GetRichEducation.com

#173: Don’t move to a low-tax state; let your tenant do it. Quit investing only for the long-term. I explain both. Alabama is the #1 state for per capita foreign direct investment. We discuss turnkey real estate investing in Birmingham, Alabama. A revival is taking place in Birmingham amidst economically diverse business sectors. Long-term tenant retention occurs in Birmingham submarkets due to: 2-year leases, tenant-owned appliances, more. When you purchase a turnkey property, you’re also “purchasing” a tenant and their income stream. We discuss. It takes about $24K-$25K to “get into” this market with down payment and closing costs on a turnkey single-family home. We also discuss how a real estate investor gets started: lender pre-approval, writing an offer, inspection, appraisal, etc. Learn more and find Birmingham property at GetRichEducation.com/Birmingham. I bring you today’s show from Orlando, Florida. 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: 01:14  Don’t move to a low-tax state. Quit investing only for the long-term. 06:14  Thriving Alabama and the revitalization of Birmingham. 10:00  Downtown Birmingham. 16:05  Primary market drivers in Birmingham: medical, automotive, Amazon sortation, education. 18:46  Neighborhood selection. 21:10  B-Class properties $80K to $125K. $1,000 rent on $104K property. 22:22  Tenant retention. 26:12  Property upgrades. 30:20  Tenant qualification. 32:38  Same rehabilitation company and management company. 36:00  City inspectors. 38:26  How you get started: lender pre-approval, writing an offer, inspection, appraisal, etc. Resources Mentioned: GetRichEducation.com/Birmingham RidgeLendingGroup.com ValhallaWealth.com GREturnkey.com GetRichEducation.com  

#172: Your market choice is more important than your property choice. One of the most prominent real estate developers in the United States, Victor Menasce, tells us how he selects a real estate market. Investing in larger metro areas is generally safer than investing in smaller metro areas because geographies are better diversified. Being invested in only one investment market is a mistake. You’re undiversified. Should you pay more or less than the construction cost of a property? Victor tells us the difference between price and value, and why that matters to you. Four factors drive price/value: 1) Construction cost. 2) Availability of money. 3) Inflation. 4) Supply and Demand. Victor is an expert at selecting markets, developing, and raising capital for deals. If you’re developing or making a large real estate investment, think about how consulting Victor could be a great investment. Connect with him at VictorJM.com. I join you from north Florida today because I’m out looking at, yes, real estate markets! 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: 01:45  Investing in only one geographic market is a mistake. 02:30  Recency bias. 08:00  Investors should start with economics and the market, not the property. 11:48  People are moving south. 13:10  Primary drivers. Oil & gas. 14:25  Real estate use type: senior housing, residential, shopping malls, office, medical. 20:25  Solving problems and meeting needs. Get out from behind your desk. 23:40  Buy on the line; move the line. 25:18  Formulas and numeric rules of thumb. 27:20  Jetsons vs. Flintstones. 29:55  Relationship-based deals. 32:24  Price vs. value. 37:43  Your turnkey provider has local knowledge. Resources Mentioned: VictorJM.com GetRichEducation.com/Jax GetRichEducation.com/Orlando RidgeLendingGroup.com ValhallaWealth.com GREturnkey.com GetRichEducation.com  

#171: Your tenant is your customer. I discuss how to attract and retain great tenants. You must think about how your tenant thinks. The quality of the asset you buy affects the quality of the tenant that you will attract. Six qualities tenants want are: 1) safety 2) move-in-ready condition 3) short commute distance 4) upgrades 5) neighborhood amenities 6) rent amount. It’s not about what you would want in a rental unit, it’s about what your tenant wants. Next, I tell you how to profit from inflation. Debt has a bad name. It shouldn’t. I tell you why you want to consider borrowing massively to profit from inflation. 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: 01:56  The definition of great tenants. 03:11  Avoid “A” and “D” class areas. 04:16  Six ways to attract great tenants.  13:23  How to retain the great tenants you’ve attracted. 20:55  How you can profit from inflation. 21:57  Inflation defined. 24:34  Why make extra mortgage principal payments? 27:28  Robert Kiyosaki. 31:05  The power of smart debt. How you get a “phantom” $40,000 gain per year on $1M debt. Resources Mentioned: How To Profit From Inflation - My Forbes article RidgeLendingGroup.com ValhallaWealth.com GREturnkey.com GetRichEducation.com   Hey, welcome to GRE. This is Get Rich Education, Episode 171. I’m your host and my name is Keith Weinhold and today we’re talking about how you attract and retain great tenants for your income properties - some of which is just sort of common sense. Then after that we’re going to discuss a topic that’s definitely not common sense which is where real estate investing intersects with the economy that you live in everyday. This is really fundamental stuff. Your tenant is your customer. You’ve got to be able to supply a product that they demand and then keep them there. As any real estate investor knows, your #1 cash flow killer is vacancy and turnover. So let’s dig into the heart of how to reduce that for you here. So the success or failure of your real estate investments depends on your ability to consistently attract and then retain great tenants. In the end, it doesn’t matter how great of a deal you got on the property or how strong your projected cash flow and return on investment are. Without great tenants that pay rent on time and take care of your property, the cash flow and returns all just evaporate into thin air. Great tenants by definition - have a job, clean, pay rent on time, and that they’re law-abiding. And yes, I do mean that they have a job. Here at GRE we talk about “Don’t Follow Money, Make Money Follow You”, well your tenant doesn’t think that way. By and large, they move to where the job is. They make a central part of their life following money around rather than following their heart or following their passion or chasing their dream. They follow a job. As I’ve often said, you want to think about how your tenant is thinking. Your tenant is just not as aspirational as you - the GRE listener is - and that’s OK - I’m glad that they’re there for us and that there’s a steady supply of soul sellers - yes, people selling their soul. So the question that naturally follows is: How do you find great tenants for your investment property? The answer is so simple, yet so impactful. The quality of the asset you buy determines the quality of the tenant you are likely to get. You can’t change a property’s location. Now, understand that you don’t want actually want an amazing A-class location. Those high-end properties aren’t profitable for long-term rentals, anyway. OK, you’re not looking for a single-family rental home with great, sweeping panoramic views of a pristine, sparkling lake that’s stocked with trout or a home with a 3-car heated garage with a painted floor. That’s A-class stuff: the best properties. I’d also advise staying away from the bottom: D-class properties - the worst. The ol’ collecting the rent at knifepoint stuff. That’s not where you want to be either. If you want to find excellent tenants for your investment-grade property, you should first purchase an investment property with the qualities that attract excellent tenants. So, really a great question to ponder - if you want to find good tenants - is: then what do good tenants look for in an rental property? 1. Safety Safety is our most basic human need and a powerful motivator for excellent tenants. One of the main reasons why your prospective tenant decided to spend more to lease a home (as opposed to an apartment) is to provide a safe environment for themselves and their family. Purchase properties in safe neighborhoods - again, avoiding D-class areas. Good turnkey providers know this & practice this. They have a company reputation to protect. Turnkey providers want referrals from satisfied investors. 2. Move-In Ready Condition The condition of the property—and more specifically the ability to move right in—is very important to excellent tenants. You could rent out a property that’s not quite move-in ready (requires paint, flooring, cleaning, etc.), but I assure you it won’t be to an excellent tenant. Your target tenant plans to take care of your property and has high standards of cleanliness and maintenance. If you provide a move-in ready home, you are communicating that you share those same standards. You know what, the first property manager that I ever hired - I only employed them for a year or a year in a half before I had to get rid of them - is because when I had a vacancy, they just didn’t get the property fresh and clean for the next tenant. So therefore, the unit still had knicks in the walls and faded paint and half-busted window blinds - and they considered that ready - they showed that to prospective new tenants. Well, what a waste. I wouldn’t even want to accept the type of tenant that would accept living in those conditions themselves. Because that type of tenant probably wouldn’t respect the unit either. So, what you can ask your manager to do - between your first few tenancies - is have them send you a 30 to 60 second walk-through video to verify that it’s acceptable to you. If it’s acceptable to you, then it’s probably going to be acceptable to a quality tenant - and this is just a good way for you to get an update on how your property is looking across the country anyway. Any good manager will do that for you. 3. Proximity to Employment Let’s face it, very few people like to commute! So proximity to employment centers is very important to good tenants. You can have a great, move-in ready home zoned to great schools, but it won’t matter if your tenant has to drive an hour to work each day. As you look at potential properties, think about where your target tenants are likely to work and how close the property is to that area. Proximity to things that everyone needs - like proximity to a good grocery store or a Walgreens or other drug store - that’s helpful too. We’re talking about the fundamentals of what your tenant wants today. That’s your customer. The last time Rich Dad Advisor Ken McElroy was here, we discussed what the newer amenities are that tenants want today that they weren’t so much asking for 10-15 years ago like good wifi. Today we’re just talking more fundamental. 4. Upgrades Some inexperienced investors subscribe to the myth that your investment property needs to be good enough for you to want to live in it yourself. I’m telling you - depending upon your standards, that’s flawed. You’re really limiting yourself if you think that way. I’m telling you, every rental property that I own - I can’t think of an exception to this right now - if I lived there, it would be a substantial downgrade to my quality of life. Now, on the other side, you might think that that your unit just needs to be “good enough for a rental.” Therefore, you purchase starter homes with cheap finishes and maybe vinyl flooring that’s thin and peeling them at the edges and then you rent them to marginal tenants and get limited results. That can almost work in some markets but this is likely going to hurt you with tenant retention. When that tenant starts doing just a little better financially, they’re going to move out. So don’t do that; instead, purchase homes that have strategic upgrades that move the needle with the better calibre of tenants that you want: vinyl plank flooring, even granite countertop in some markets, black or stainless appliances - not so much white ones, covered patios, things like that. You know how I talk about how it’s not about what you want, it’s about what your tenant wants. It’s about putting your desires aside. For example - and I know that I’m different here - I’ve never understood people’s desire for hardwood laminate flooring or vinyl plank flooring. To me personally, carpeting is just so much more comfortable. On top of that, when people move into a place that has the laminate flooring that they desire, what’s the first thing they do? The first thing they do is find a big area rug to put on top of their laminate or vinyl flooring. Ugggh - I just don’t get it. And then the area rug doesn’t have any padding underneath it so it still isn’t nice & soft. People say that laminate flooring is easier to clean - not really - not when you’ve put a big area rug in the middle of it - now you’ve got that rug to clean plus you need to use the Swiffer dry on the perimeter where the fake wood is - it just doesn’t make sense to me. Plus in cold climates, the laminate feels cold on your feet. I’ve just never understood Americans’ desire for these cold, hard surfaces. But this is where I have to put aside what I want. Most people - tenants included want cold, hard surfaces for whatever reason. I just don’t get it, but I don’t have to - you need to understand what the customer wants and give it to them. ...and I’m happy to give their cold, hard, vinyl plank to them because it’s more efficient for investors in the long run - it rarely has to be replaced. -We’re talking about how to find and retain great tenants today. 5. Neighborhood Quality Now, neighborhood quality is kind of different from safety. Neighborhood quality determines the quality of your tenants’ life. Think about the community you live in—the neighborhood amenities probably played a major part in your decision to live there. Your lifestyle is different in a neighborhood with running and bike trails, community pools, tennis courts, a gym, etc.? Quality tenants care about neighborhood quality. A community doesn’t have to have ALL those amenities, but if it’s got a few, that’s better. Access to Transport & Basics Access to modes of transportation and basic necessities like grocery stores, restaurants and shopping is very important because it affects other important factors such as commute to work and lifestyle quality. When you’re looking at investment properties think about: How easy is it to get to the main highway/park and ride/public transportation? Are there basic services within easy reach? 6. Rent and Price Last but not least, your investment is ultimately a business decision for you as well as your prospective tenant. Your tenant will be concerned with the rent, and you will be concerned with the relationship between the rent and the price you pay for the property. Make sure the projected rent isn’t so high that it limits your tenant pool and so low that it lowers the quality. good tenants pay their rent on time. That’s a baseline. Great tenants go well beyond on-time payments. They treat the property with respect, seeing it as a home versus a rental, and they treat you as the owner and provider of that home with respect also. So, there I’ve discussed six items that attract excellent tenants to your property. Retention You know what, if your tenant wants to paint the inside of their property, I say let them. It makes it like home to them, and when it makes it like home to them, you’re going to  retain them. They’re also more likely to a pay rent increase. They’ve invested their time in painting the place, plus it feels like home. Conversely, what if they ask to paint the place and you tell them “no”? How long do you think they’ll feel like staying? It can be written into the lease that they have to paint it back or whatever. So let them paint it. Let them make it feel like it’s theirs, and they’ll probably take better care of other parts of your property too. Another way to retain excellent tenants if that you should ask for tenant referrals. Birds of the same feather flock together. You are the average of the five people that you spend the most time with. If you ask your excellent tenant who their friends are and offer them a $100 gift card or even $200 gift card - that is so worth it for another excellent tenant. Something else that helps with retention - and this is where the power of hiring out professional management really helps you - is that your manager should respond to maintenance requests promptly. A good tenant will get sick of dealing with that leaky faucet, with that pilot light that keeps going out in the water heater. If you’re a full-time job worker, it’s a lot easier to defer - to put off - handling that maintenance request if you’re your own manager. Again, think about how you would want to be treated. Think how your tenant is thinking. If their bathroom door hasn’t closed properly for three weeks after they’ve first told you about it, #1, they won’t be happy and #2, they sure aren’t going to refer their friends. When it comes to maintenance requests, a 24-hour answering service for your tenants makes them feel better even if your manager doesn’t get to it right way. Ultimately, what you want are happy tenants. When you have happy tenants, you’re probably meeting that ideal that we talk about here where you’re providing housing that’s - you’ve heard me say it many times - clean, safe, affordable, and functional. I’m coming right back with more. We’re going to talk about perhaps the most stealth way that real estate investing makes you wealthy. Something that definitely does not qualify as “common sense” at all. First - and I didn’t know whether I wanted to mention this earlier or not, but, while I’m talking to you my heart is rather heavy today because my Grandma Weinhold - my father’s mother passed away. I actually tried to do the show here earlier and I wasn’t quite ready, but you know, I found some more strength when I realized that Grandma would have wanted me to do it. You know that I’ve sort of affectionately referred to my Grandma Weinhold as Grandma Yellen on the show before for her loose physical resemblance to Federal Reserve Chairwoman Janet Yellen...so, I thought you just deserved to know. She was also my last surviving grandparent so from my perspective, I’ve lost an entire generation of my family today. You know, at best, when something like this happens, I like to think “Don’t be sorry that it’s over. Be glad that it happened.” Especially when she was 95 years old - just weeks from 96, she still lived in her own home by herself, and I just two days ago I talked to her on the phone as she was in her Lancaster County, Pennsylvania home and, you know, I could talk to her just like I’m talking to you - I never had to slow down my talking or raise my voice. She had a great mind. Always incredibly loving & welcoming to others, she still hosted the entire extended family at her own Fivepointville, Pennsylvania house this past Christmas. It was her last Christmas. I’ll be right back. I will always love you and your spirit, Grandma Weinhold. _____________________ I’m Keith Weinhold. Welcome back to Get Rich Education. Before you purchase that clean, safe, affordable, functional property, you’re going to be miles farther ahead if you have a mortgage lender that specializes specifically in income property loans. In fact, ideally, you’ll start there before you select a property. A company that knows what non-owner-occupant investors need can get you closed faster - and even help ensure that you get closed at all. The company that’s helped more real estate investors realize their dreams of financial freedom than any other mortgage lender in the entire nation - can help you too. That’s Ridge Lending Group. They’re based in Portland, Oregon but that hardly matters because they specifically focus on originating income property loans and they do it in almost every U.S. state. You can check them out at RidgeLendingGroup.com Ridge Lending Group’s CEO Caeli Ridge has generously been here on the show with us three times to give you the inside scoop on how to best financially position yourself and about all the changing lending guidelines. She was most recently here on Episode 154. So when you get ahold of them at RidgeLendingGroup.com, tell them thanks for coming onto GRE and helping you with your strategy. You know, with what I’ve discussed on how to attract and retain great tenants in your property, I think that a lot of that is common sense, yet they’re the type of things you might tend to forget about if you aren’t reminded once in a while. Something that’s not so common sense-ish is how you can profit from inflation - and my first-ever article that I wrote recently for Forbes Magazine covered that topic. Not just reading the article to you here, but also injecting some more commentary into it for you...this is stealth stuff, so here we go... As a 15-year real estate investor, author, Rich Dad Advisors writer and long-time real estate investing podcast host, I've found that homeowners and investors alike still champion the largely antiquated ideal of a "paid off" property. Inflation is just one of many reasons to consider maintaining a mortgage. ...and, by the way, leverage and tax benefits are some other big reasons for holding a mortgage - leverage is probably the biggest one - but we’re talking about inflation’s importance in why you should keep your mortgage loan balance high here. First, What Is Inflation? Inflation is the rate at which price levels rise. It results in the diminished purchasing power of your dollar, which keeps getting “watered down” over time. It is why your $8 Chipotle burrito will soon cost $9. It is why in 1913, a pack of Wrigley’s gum costing you 4 cents will cost you one dollar today. You don’t think about inflation as much as you should Do you know why you don’t think about inflation as much as you should? because you’ve never seen an “inflation bill” alongside your electric bill, internet bill, credit card bill or Netflix bill. Inflation is insidious — an invisible tax, a stealthy thief. Your inevitable dollar debasement is precisely why you wouldn’t keep a million dollars in the bank for three decades. In 30 years, a 4% inflation rate would whittle your million bucks down to just $308,000 of purchasing power. From Ancient Romans crudely clipping the edge of denarius coins to the U.S. Federal Reserve’s Quantitative Easing in the 2000s, governments and central banks feed their inflationary mandate. Well Now How Exactly Does Inflation Benefit Mortgage Holders? In 30 years, a 4% inflation rate would whittle your million dollar mortgage down to just $308,000 of inflation-adjusted debt burden. Yes, so just like inflation harms the saver, it benefits the borrower. Real estate investors have the ability to borrow with long-term fixed-interest-rate mortgages tethered to an income property — at scale. When you borrow this way, your monthly principal and interest payments are completely outsourced to tenants. Why rush to pay down your loan when both tenants and inflation erode your debt for you? When you're the beneficiary of this situation, you have to ask why you would make extra mortgage principal payments. When you do, here's what you're saying: "Hey, Mr. Banker, here's an extra $100! Don't pay me any interest on it. If I need it back, I'll pay you fees once again, plus I'll prove to you that I qualify again." That’s kind of along the lines of my whole “Financially-Free Beats Debt-Free” mantra there. Rather than using an extra $100 to pay down your mortgage, what if you used it toward investing in more real estate? If you believe that real estate creates wealth, then you want to control more property, not less. You can't shrink your way to wealth. Take out a million-dollar loan and factor in, say, 10% inflation over a couple years, and you will end up only having to pay it back in nominal (in name only) terms. Your lender is not requiring you to repay in inflation-adjusted dollars. So with that 10% inflation, it becomes just $900,000 that you need to pay back in real terms. As time passes, an inflating currency supply means that wages escalate, consumer prices climb higher and your properties will command higher rents. This is why it becomes ever-easier to pay back your debt. Inflation-profiting is your quietest wealth center as a real estate investor. It is your “friendly phantom." If you have, for example, a $1,250 fixed-rate amortizing mortgage payment on a property you lease to others, that won’t rise with inflation either. But your rental income will. This is why your cash flow grows faster than inflation over time. It’s because your biggest expense - your loan repayment amount - is typically fixed. No loan means no inflation-profiting benefits. Inflation transfers wealth from lenders to borrowers. Lenders are paid back with diluted dollars. Real estate investors are optimally positioned to take advantage of this. Remember, if inflation transfers wealth from lenders to borrowers, how many mortgage notes do you really want to hold onto? I know we’ve got some mortgage note investors out there. I want to mostly get on the debt side instead. When I’m a debtor, now I’ve got inflation helping me, not working against me like it does for mortgage note holders when that person is making a loan to others. Again, inflation transfers wealth from lenders to borrowers. What did Robert Kiyosaki say about debt the last time that he was on the show here with us? So, this Robert Kiyosaki, the author of the book “Rich Dad, Poor Dad” and the greatest personal finance author of all-time, when asked about real estate, debt was the first thing that he brought up! By the way, he was last with us here in Episode 126 if you want to listen back, so... The rise of globalization and technology might slow inflation’s creep, but I don’t believe that it can reverse it. To create wealth, you need to both think and act differently than the crowd. Importantly, each debt origination is smartly anchored to an income-producing asset — a property — that’s worth more than the amount of that debt. If your asset value temporarily drops like many experienced in 2007-2010, would you really be concerned if it still produces income for you? Risk still exists. You must carefully select this cash-flowing asset in a metro area that projects job and population growth so that you have a reasonable expectation that the property will stay occupied with a rent-paying tenant. Why Does Debt Get A Bad Name? Debt triggers negative feelings because your first experience with debt likely was when it was tied to something that didn’t produce income. You worked overtime on the weekend in order to make your Honda Civic payment. You made sacrifices to pay credit card finance charges on a Morton’s Steakhouse dinner that you splurged on six months earlier. You paid for your Honda Civic -- your Honda Civic never paid you. But if you use smart debt tied to an income-producing single-family home or eight-plex, now you’re on top of debt — not trapped beneath it. What’s Your Bottom Line? You borrow — massively. That’s how you profit from inflation. If you have substantial equity in only a few properties, make equity transfers via cash-out refinances and 1031 tax-deferred exchanges. This creates smaller equity positions in more properties. First, this means you'll have more smart debt. Secondly, realize that your equity is not lost -- it is only transferred in order to create greater leverage. Thirdly, you can better diversify into different geographies, hedging market risk. Fourthly, with greater projected cash flows, you've taken steps away from debt freedom and toward financial freedom. Finally, you're quietly profiting from inflation. Your currency will keep losing value. Rather than this causing frustration, now you know how to make inflation profitable. In fact, I’m an inflation cheerleader. Some people have so much bad debt that they can’t sleep. If I didn’t have enough smart debt, I couldn’t sleep. So, this is why I’m interested in debt. Just think, for every million dollars in real estate debt that you have, if inflation is 4% - and it’s easy to believe that the real rate of inflation could be higher than 4% - and certainly higher than what the government reports… ...but at just a 4% inflation rate, your million dollars of debt that’s outsourced to others means that you’re being enriched an extra $40,000 every year. $40,000 for you every year - and this is a way that real estate makes you wealthy that most people just never even consider… ...and how many people hold onto $1M of debt for as little as a year. Almost nobody, so over just five years, that’s an extra $200,000 transferred to you. Actually with compounding - it’s more - maybe $220,000 over five years - again, on something that most people don’t even notice. So, it’s no wonder why real estate investing has made more ordinary people wealthy than anything else. Gosh, if you’re newer to studying the economy, just read more on Investopedia on what economists think the true rate of inflation is. We’re just been talking about 4% inflation on your $1M of cash-flowing real estate debt. What if you’ve got 6% inflation - again, a totally realistic number - 6% on $2M worth of debt? That’s a $120,000 gain that you’re receiving each year. You’re holding properties more than one year. So over five years, that’s a $600,000 gain for you - maybe $630,000 or something like that with compounding - and this is something going on in the background that most people don’t even consider - with all the other ways that real estate is paying you. Just astounding! I’ve linked that Forbes article for you in the Show Notes in case you care to read that to help reinforce what you’ve just listened to. I also discuss the inflation-hedging benefit and the four other ways that real estate investing pays you - yes, you’re paid five ways simultaneously as longtime listeners know. I discuss all this in my quick-read 80-page book and I’m giving away the e-version of that book “7 Money Myths That Are Killing Your Wealth Potential” completely free. I’m not sure how much longer I’m going to to that. Not just a teaser chapter or two giveaway, but I’m giving away the entire book free at GetRichEducation.com That ought to give you plenty to think about until next week. I am enthusiastically dedicated to helping you build durable wealth for yourself. That’s why I’ll be back for you next week. Until then, Don’t Quit Your Day Dream!

#169: If you want profit, your real estate’s rent income-to-purchase price ratio matters most. I reveal the top five cities for this vital ratio. I discuss how the media often gets real estate investing wrong. I talk about how to handle your relationship with your Property Manager. Renters have conventionally been young, single, less educated, and low to middle income. You’ll learn about how quickly this is changing. When did renters get so old? Of all product types, more renters are demanding to rent single-family homes rather than other product types. Later, Get Rich Education listener Jacob Ayers stops by to chat with me. He hosts The Real Estate Way To Wealth And Freedom podcast. GRE is the first podcast that Jacob ever heard; now he’s on the show. 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: 01:04  Top 5 cities with the best ratio of rent income-to-purchase price. 05:03  How the media gets real estate investing wrong. 06:50  Your Property Manager. 11:28  Tenant demographics. 13:26  Surging rental demand for single-family homes. 17:58  I’m soon going on a Florida real estate tour. 21:16  GRE Listener Jacob Ayers chat begins. 23:59  Following money vs. making money follow you. 25:25  Jacob’s first rental property cost just $25,000 in western Oklahoma. 28:33  Jacob’s first mistake involved tenant screening. 30:57  Tips for RE investors with a full-time job. 32:25  Jacob encourages you to get started. 35:47  Live where you want; invest where the numbers make sense. 37:33  Jacob now hosts his own podcast. Resources Mentioned: Article: Best Markets For RE Investors Article: Should You Rent Or Buy Your Home? JacobAyers.com Podcast: The Real Estate Way To Wealth And Freedom RidgeLendingGroup.com ValhallaWealth.com GREturnkey.com GetRichEducation.com

#168: Reduce your taxes by 10-40% in just three months. Rich Dad Tax Advisor Tom Wheelwright is back again to tell us how. Tom and I discuss the IRS’ coveted Real Estate Professional designation - the benefits, what you must do, and what you must not do. If you outsource property management, will that prevent you from the RE Professional designation? Some U.S. states have annoyingly high transfer taxes. We discuss a strategy to avoid paying it. 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: 01:02  Invest for income. 03:17  Real estate is a great tax shield. 08:00  Motivation and mindset behind tax reduction. 12:44  The tax code is a treasure map for deductions. 15:31  The Real Estate Professional designation. 20:22  Property management and the RE Professional designation. 24:28  Transfer tax in real estate. 27:34  Assets vs. Liabilities. 29:22  LLCs and transfer tax. 30:51  You can’t reach your dream by paying high taxes. Resources Mentioned: TaxFreeWealthAdvisor.com Tom’s book: Tax-Free Wealth Real Estate Transfer Tax by state RidgeLendingGroup.com ValhallaWealth.com GREturnkey.com GetRichEducation.com

#167: Want to own your own bank? Today’s guest, M.C. Laubscher, tells you how and why. The “Infinite Banking Concept” provides you with liquidity, tax-free growth, and your own control outside the banking system. Many real estate investors utilize the Infinite Banking Concept, aka “Cashflow Banking” to increase their rates of return. Today’s guest also hosts the Cashflow Ninja podcast. First, I tell you how you are giving more to others than you think. You are already more generous than you knew. 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: 00:52  You are more of a giver than you think. Here’s why. 02:53  Mobility. 07:58  M.C. Laubscher’s background and “Rich Dad, Poor Dad” influence. 11:40  Why people struggle financially. 14:11  People don’t even consider investing for income. 18:00  Your wealth formula. 21:11  Structured Whole Life Insurance with the Infinite Banking Concept. 25:55  Example of a $1,000 monthly contribution. 6-7% interest rate. 28:45  Example with $60,000 cash value balance. 32:22  Insurance companies are profitable and enduring. Resources Mentioned: YourOwnBankingSystem.com RidgeLendingGroup.com ValhallaWealth.com GREturnkey.com GetRichEducation.com

M.C. Laubscher is the CEO of Valhalla Wealth Financial, a company that helps individuals, families, small business owners, professionals & entrepreneurs employ wealth acquisition & financial management strategies for growth. M.C. is also the host of the popular business and investing podcast, Cashflow Ninja. He challenges existing societal belief systems and misinformation on money, saving, investing, wealth, and retirement. During the show, M.C. will reveal the six pillars he learned after interviewing over 150 successful investors. He will speak on accumulation and the cash flow model including the power of masterminds and mentorship. Listen to the end for the three principles to help build your wealth, happiness & success.   Links: Cashflowninja.com Valhallawealth.com @mclaubscher   Where are we: Johnny FD - Ukraine Sam - Hong Kong M.C. - Pennsylvania   Discussed: Try FreshBooks Free Gofundme.com/playgrounds4orphans Inside: McDonald's | Netflix 160: Sam Marks: How to use Speed & Strategy to Gain a Competitive Advantage Sam Marks: Building a $100 Million Dollar Company   Book: The Creature from Jekyll Island - G. Edward Griffin   Time Stamps: 06:50 - Common myths and misinformation 12:55 - Deferring taxes 15:14 - Accumulation and cash flow model 23:38 - Learning from successful investors 28:41 - Philanthropy 31:22 - M.C’s backstory 38:47 - Masterminds and mentorship 47:50 - Life settlement system 52:00 - Three principles to build wealth, happiness & success 1:05:15 - Explaining life settlement funds 1:08:17 - Institutional risks 1:11:24 - Ukraine money exchange   If you enjoyed this episode, do us a favor and share it! Also if you haven’t’ already, please take a minute to leave us a 5-star review on iTunes and claim your bonus here!   Copyright 2017. All rights reserved. Read our disclaimer here.  

MC & Dan Discuss: Use Property Tax Money to Create Assets  Power of the Banking System Creating Your Own “Private Banking System” How Rugby Creates More Success in Business & Real Estate   Mentioned Episodes: (There are 79 Content Packed Interviews in Total) Paul Sloate on the January 2017 Monthly Market Update Austin Stack on Being Drafted onto the Diamond Equity Team Josh Inglis on Building New Construction & Selecting Rentals on Chicago’s South Side Donna Spina on Hiring & Retaining in the Real Estate Business   Resources Mentioned in the Episode:             MC’s Cash Flow Ninja Podcast Show                 www.CashFlowNinja.com                   MC’s Wealth Management Firm                 www.ValhallaWealth.com   Do You Know Anyone Else Who’s a Real Estate Investor?  Do You Think they’d Also Enjoy this Episode? Please Forward this Link & Tell Them to:   Sign Up for the REI Diamonds Weekly Podcast Your Copy of “7 Sources of Off Market Deals” Just Go to www.REIDiamonds.com to Download a Copy & Check out Recent Popular Episodes.