Get Rich Education

#162: Learn about leverage ratios, how leverage can grow your wealth using other people’s money, and how to be protected from leverage risk. Keith provides the most important takeaways from the New Orleans Investment Conference. Next, Clayton Morris, former news anchor on the number one cable news show in the world, and host of the podcast Investing in Real Estate with Clayton Morris, talks to us about his wealth building realization.  Clayton explains what the Freedom Number is and how it relates to building wealth using buy-and-hold strategies. Keith and Clayton discuss one of the best things that can be done to make a real estate passive income stream more durable. 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: 03:00  Understanding leverage ratios. 07:34  Hedging against leverage risk. 10:

#161: What makes you weird makes you successful. Embrace what makes you “abnormal”. Why? Because being wealthy isn’t normal. Inflation transfers wealth from lenders to borrowers. Therefore, be a smart borrower. Next, Rich Dad Advisor Garrett Sutton joins us with updates to protect yourself and your real estate with Limited Liability Companies (LLCs). His website is CorporateDirect.com. We learn about common asset protection mistakes. Garrett tells us why flip properties and buy-and-hold properties should be in separate LLCs, and more. When you establish a Wyoming LLC which presides over your other LLCs, you get better protection and you reduce your audit risk. LLCs vs. LPs also discussed. 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: 00:50  What makes you weird? Embrace it. That’s often what makes yo

#160: You want cash flow that is stable and durable. Today’s guests, Terry Kerr and Liz Nowlin from Mid South Home Buyers, tell us how both they and Memphis, TN delivers. We discuss the 19 due diligence questions that you need to ask when you’re vetting a turnkey real estate investing provider. When you purchase real estate “turnkey”, the property is already renovated and tenanted. That way, your provider maintains more risk before you purchase the property. Learn about the neighborhood “sweet spot”, little-known differences between a $125,000 property and a $62,000 property, and the importance of in-house property management. Find out how to avoid lengthy vacancies. Does your provider mark up materials? Learn about when your provider makes guarantees about your property’s occupancy and renovation. Want more wealth?   1) Grab my free E-book and Newsletter at: GetRichEducation.com     2) Actionable turnkey real estate investing opportunity: GREturnkey.com   3) Read my new, best-selling paperback: GetRichEducat

#159: Negotiation is a substantial part of real estate and investing. We discuss exactly what you do when the tenant wants to pay the rent late. I tell you exactly how I negotiated the price and terms on the very home that I live in today! Then our guest, Kwame Christian, Founder of the American Negotiation Institute joins us. He defines negotiation as “A conversation where somebody wants something.” Three uses of negotiation: 1) Use offensively. 2) Use defensively. 3) Strengthening relationships. We discuss how you negotiate in a way where you keep a strong relationship with the other party, rather than alienate them. We talk about how to motivate your Property Manager to work hard on your behalf. In negotiation, let other party speak first. Let them make the first offer, except when you have more information. We discuss midpoint negotiation. “Anchoring” is an important part of negotiation psychology. This can help you get a better deal. Kwame and I discuss what people will pay what an item is worth to them,

#158: Generate $5,000 to $15,000 monthly cash flow from one single-family home converted into an Assisted Living Home (ALH). The demographic trend is your friend. Every year 1.4 million Americans are turning age 85. To invest in ALHs, begin with the property’s location.  We discuss exact numbers on how a Profit & Loss Statement differs from that of residential cash-flowing turnkey property. You optimize income by attracting “Private Pay” residents, not Medicare/Medicaid residents. We discuss how. We discuss how an ALH Manager’s role differs from that of a residential Property Manager. We discuss. Risks and licensing requirements might not be onerous, yet they’re barriers of entry to others. Financing options are quite favorable if you want to begin an ALH. Gene Guarino, Founder of the Residential Assisted Living Academy, is our guest today. As a gift, he offers us a FREE 6-Part Residential Assisted Living Training. Gene has also founded the upcoming Residential Assisted Living National Convention. The ina

#157: With steadier cash flows than residential real estate, 100% occupancy, zero chance of tenant damage to your property, appreciation potential, and a low cost of entry, anyone can own part of their own cacao (chocolate) farm in Latin America. Investors like you can own individually deeded ½ acre parcels of cacao trees, turnkey managed, and expect to yield cash flow on an annual basis from the harvest and sale of cacao, chocolate and its related products. David Sewell, Founder of the Belize Cacao Consortium (BCC), talks with me about the field trip that I recently took in Belize. I learned about investing in cacao “from seed to chocolate bar”. Supply vs. Demand: The world has less & less arable land, and more and more mouths to feed. High-end specialty cacao (a.k.a. “Fine flavored cacao”) has a demand that far exceeds supply. Belize has long been known as a cacao-producing region. The BCC brings needed professional agronomy and soil science to add value to cacao farm operations. We discuss the upsides

#156: Unemployable by choice, Nick Bond, age 22, is a recent college graduate that is building his own real estate business rather than getting a job. School grades aren’t any more predictive of success than rolling a pair of dice. I discuss Boston College research that supports this. Valedictorians don’t become billionaires. Millionaires have an average college GPA of 2.9. Is it worth it to go to college? College is more expensive in the U.S. than anywhere else in the world. Yet at the same time, the value of a college degree has dropped. Once you got out of school, you found yourself “making things up” as you go. Later, you find out that everybody is “making things up”. Today’s guest, Nick Bond isn’t taking the j-o-b route that his friends are. He was influenced by his parents to be more entrepreneurial. Nick has begun raw land investing / flipping. Get control of both your time and your geography. Live a cloud-based life through Google Drive and Dropbox. Read your monthly real estate property management st

#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 Amazo

#154: After you have 10 financed residential properties and you want more, we discuss your options. These Specialty Loan Products are exciting. Example: 25% down, 5.9% interest rate today, 30-year amortization. We learn this today from Ridge Lending Group President and CEO Caeli Ridge after she first reviews qualification criteria for the first 10. I also discuss a simple way for you to increase your Cash-On-Cash Return with no extra money out of your pocket. We discuss what’s changed with qualification requirements for your debt-to-income ratio, reserves, LLCs, liquidity, cash-out refinance limits and more. I bring you today’s show from San Jose, Costa Rica. 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: 01:17  How to increase your Cash-On-Cash Return. 03:42  High closing cost states: TX, FL, northeaster

#153: Where are real estate prices headed? I discuss this with Kathy Fettke of The Real Wealth Network. Demand still exceeds supply in many places. But in coastal areas, affordability problems could be a constraint on future appreciation. The latest Case-Shiller 20-City Index shows 5.7% year-over-year housing price growth. Though this is surely an imperfect metric, it is a historically sustainable growth rate. It is also supported with responsible lending. Kathy & I have each invested through the 2008-2009 Mortgage Meltdown and Great Recession. We discuss how that shapes our investor behavior. I also discuss how natural disasters like hurricanes can pummel those that have a lot of equity in their properties. I bring you today’s show from Punta Gorda, Belize. 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 lea

#152: I recently made a real estate market field trip to St. Louis, Missouri. As one of the 20 largest U.S. metropolitan areas, its job growth and diversity of business sectors support durable rental income streams for real estate investors. Typical price points are $1,100 rents and $110,000 purchase prices for single-family income property in St. Louis. St. Louis has city housing inspectors - upside: this supports neighborhood condition, downside: they must be complied with. Kansas City, Missouri is also experiencing steady job growth amidst varied employment sectors. Visitors to the city remark about the area's cleanliness. Both St. Louis and Kansas City have investor-advantaged rental neighborhoods that consist of about 65% owner-occupants. This promotes good curb appeal and safety. Missouri has Landlord-Tenant laws which favor the investor (landlord) more than the tenant. We’re discussing investment in turnkey income property: typically single-family homes that are already renovated, tenanted, and under m

#151: Your job feels bad. It makes you wonder where your time went. Keith tells you why your job feels so bad, gives you possible solutions, and reminds you “where your time went”. Your job feels worse than ever due to economic, demographic, and social reasons. This is supported by data from the Bureau Of Labor Statistics, the Census Bureau, Bloomberg, and elsewhere. We explore. GRE listener Douglas Orr tells you how he built enough passive income to leave his job in just three years by quickly accumulating 50 rental doors. He respects his time by outsourcing property management. Douglas began RE investing by pulling $20,000 out of his 401(k) to buy a duplex and triplex. 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: 02:01  Keith likes the new Apple AirPods wireless headphones. 03:46  “Where did your time

#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)

#149: When real estate markets heat up, some investors are tempted to invest in tiny towns with few industries. With 700,000 in the metro area, Little Rock, Arkansas is substantially larger. Little Rock's diversity of industry includes government, health care, education, and military. Arkansas could be the most landlord-friendly of all 50 states. Landlords aren’t even obligated to make repairs. Little Rock Turnkey rehabilitates a property, places a qualified tenant, puts the property under management, and then sells it to you. It is expected that this “turnkey” property produces cash flow for you on Day 1. 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: 02:22  Pay attention to your monthly Property Manager statement. 05:08  Helping your profits: estimates vs. quotes. 07:37  Jeremy Veldman interview begins.

#148: Do markets feel frothy to you? Real estate, stocks, corporate valuations, and even the values of major pro sports franchises have risen substantially. Keith explains why this matters less than you think. You learn about some little-known advantages of investing in single-family income property rather than apartment buildings. Brien Lundin, host of the New Orleans Investment Conference, joins Keith. Keith will be in New Orleans for the conference this October 25th - 28th. Speakers include Tucker Carlson, Doug Casey, Peter Schiff, and Robert Kiyosaki. Brien tells us about the role that gold plays in the world today. Keith tells you how much of his net worth is invested in precious metals. Want more wealth? Visit: 1) GetRichEducation.com to grab our free newsletter.  2) GREturnkey.com for actionable turnkey real estate investing opportunities. Listen to this week’s show and learn: 00:49  Frothy markets. 02:08  The median sales price of existing US homes is $264,000. 05:59  Single-family income properties

#147: You’re going to live longer than your parents and ancestors. Half of today’s retirees will live into their 90s. That’s good...if your finances can support your lifestyle. Patrick Donohoe, Founder and CEO of Paradigm Life, is our guest today. Debt is vital to wealth creation. We tell you why. Inflation vs. Deflation: this “Economic Tug Of War” is discussed. It’s deflationary globalization versus inflationary dollar-printing. Patrick tells us how to bank outside the banking system via the Perpetual Wealth Strategy. Grab Get Rich Education’s new book at GetRichEducation.com/Book Want more wealth? Visit: 1) GetRichEducation.com to grab our free newsletter.  2) GREturnkey.com for actionable turnkey real estate investing opportunities. Listen to this week’s show and learn: 01:00  “Formal education will make you a living. Self-education will make you a fortune.” -Jim Rohn 06:08  Patrick Donohoe interview begins. 09:24  Retirement: is the very idea “anti-life”? 12:36  Buying time vs. selling time. Wall Street v

#146: Debt is good. Debt is bad. Which type is good and which type is bad? When your tenant is paying your debt for you, that’s good debt. When you have consumer debt, that’s usually bad. But Keith contends that consumer debt can almost be good for some savvy investors that use debt for arbitrage. If you could have gotten a 3% loan on your car, but instead you chose to pay cash, then you’re probably paying an opportunity cost. In real estate, the return from equity is always zero. Debt replaces that zero-return equity. But would you ever pay all-cash for your property? Keith is a “leverage guy”, but yet he gives reasons for when and why you would want to pay all-cash. Would you borrow $100K from 0% APR credit cards to create arbitrage? Some do. Mortgages, Home Equity Lines Of Credit, Federal Funds Rates, automobile loans, student loans, and credit card debt are all discussed. Ultimately, you would rather be financially-free rather than debt-free. Grab Get Rich Education’s new book at GetRichEducation.com/Book

#145: Financial advisors sell stocks. Buy-and-hold stock investing doesn’t create wealth, but financial advisors create the illusion that they do. Today’s guest, Ntellivest’s Brent Sutherland, is a financial advisor that began successfully investing in cash-flowing real estate with 8 single-family properties. Brent pulls back the curtain on what’s going on “behind the scenes” with financial advisors and their biased “advice”. Really...what’s wrong with stocks? Keith adds content about how and why buy-and-hold stocks don’t create wealth with five reasons: inflation, emotion, taxes, fees, and volatility. This is partly due to secondary market dilution. Grab Get Rich Education’s new book at: GetRichEducation.com/Book Want more wealth? Visit: 1) GetRichEducation.com to grab our free newsletter.  2) GREturnkey.com for actionable turnkey real estate investing opportunities. Listen to this week’s show and learn: 01:12  Why live anything less than a great life? 03:04  Hordes of people still believe that buy-and-hold

#144: In an economic crash, a great place to be positioned is in low-cost housing within a diversified metro market like Indianapolis, Indiana. Learn more at: GetRichEducation.com/Indy Indianapolis has a remarkable combination for investors: investor-advantaged property, a diversified economy, population growth, low unemployment, a business-friendly environment, low-cost housing, stable Indiana state finances, and more. Indianapolis’ business drivers are in some of the most diverse and necessary sectors: healthcare, finance, technology, education, and more. Amazon has set up an enormous distribution center in Indianapolis due to its central geographic location. Today’s guest offers turnkey cash-flowing real estate in Indianapolis. Grab Get Rich Education’s new book at GetRichEducation.com/Book Want more wealth? Visit: 1) GetRichEducation.com to grab our free newsletter.  2) GREturnkey.com for actionable turnkey real estate investing opportunities. Listen to this week’s show and learn: 00:45  In an economic cr

#143: You’re entitled to a great gift from the IRS - lifetime tax-deferral so that you never have to pay capital gains tax on the sale of your investment real estate. With a 1031 Tax-Deferred Exchange, you can infinitely defer your: federal capital gains tax, state capital gains tax, and depreciation recapture. From the sale of your property, you have 45 days to identify, and 180 days to close upon your replacement property. Details in-episode. 1031s are only for investment property. They’re amazing wealth-building tools, but you must follow strict rules. Graham Parham of Highlands Residential Mortgage joins Keith later in the show to discuss lending obstacles with 1031 Exchanges. 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: 02:12  Normally, upon the sale of income property, one must pay fed