Get Rich Education

#204: Your real estate ROI could be a billion dollars. Even if your property never appreciates nor pays you the other four ways, I discuss a little-considered way where you're STILL profiting. Real estate price and value are different. "Return ON Equity" vs. "Return FROM Equity" discussed. Are you leveraging appreciation or leveraging inflation? Inflation assists leveraged real estate investors 3 ways: asset inflation, debt debasement, and higher cash flows. Real estate flipping vs. investing is discussed with Matt Theriault. Matt and I discuss the mindsets around passive income vs. active income. The importance of markets and teams. __________________ 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: 02:13 Your ROI. 03:54 If your property never appreciates or pays you, here's how you profit. 07:08 Leveraging inflation, not appreciation. 13:10 Cleveland cash-flowing property. 15:33 Matt Theriault joins us. 22:25 Retirement. Piles vs. streams of income. 29:12 Flipping vs. Investing. 31:08 Markets and teams. 35:42 You must act. Resources Mentioned: Warren Buffett Quote Matt Theriault Website Cleveland Turnkey Real Estate 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

#203: Doctors' debt is $200K-$600K+ after medical school. Should they pay it off or invest in real estate instead? Most view doctors as "successful" - they help people and earn more than most. Dr. Buck Joffrey joins us. Are doctors "too academic" to be concerned with investing? They miss out. Get his great Wealth Formula Roadmap Course. Young doctors often ask veteran doctors what to do with their money. They get referred to a typical financial advisor. "The Rule Of 72" is misleading. Mutual fund investors often make zero return. It is impossible to build substantial wealth without (good) debt. That is, debt that's outsourced to others, like tenants. I give a concrete example of how debt creates wealth for you with a $1M building where you make a small down payment. Inflation dilutes the weight of your debt. Wealth Formula = Mass x Velocity x Debt Dr. Joffrey's first apartment building was bought based on "a promise" - a pro forma on a Class D building. It was awful. _______________ 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: 02:10 My chat with a new medical doctor and his $450K debt. 06:00 Dr. Buck Joffrey interview begins. 09:05 Are doctors "too academic" to be concerned with investing? They miss out. 12:15 When you have a Dad that's in real estate investing. 14:35 "The Rule Of 72". 16:43 Flawed conventional wisdom. 20:00 Debt. 24:58 Inflation-profiting from debt. 28:39 The mathematical wealth formula. 30:13 Dr. Joffrey's first apartment building was a loser. 31:50 Wealth Formula podcast. 33:47 Dr. Buck Joffrey's video course: Wealth Formula Roadmap. Resources Mentioned: Video Course: Wealth Formula Roadmap Book: Cashflow Quadrant 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

#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

#201: Your down payment, credit score, reserves, debt-to-income ratio necessary for an income property loan are discussed. Ridge Lending Group President and CEO, Caeli Ridge, also tells you 15% of appraisals come in low, 80% right on, and 5% above the contract sale price. Can a bank call your mortgage loan payment due-in-full anytime? Short answer is "no". We discuss. Learn some good options after your first 10 loans (single) or 20 (married) are exhausted. We discuss the effect of higher mortgage interest rates on your cash flow. HELOC interest is not always tax deductible. Be mindful that Trump doubled the standard tax deduction threshold. _______________ 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: 02:58 Receiving sale price discounts for paying cash rather than financing property. 08:48 Two sets of underwriting guidelines: loan spots 1-6, loan spots 7-10. 18:40 Can a bank call your loan due-in-full anytime? 22:50 Max. LTVs on cash-out refis. 26:56 Portfolio financing beyond ten loans: 6.375% interest rate. 31:00 Higher interest rates than last year. 33:27 Appraisals. 36:26 Underwriting guidelines: too loose or too tight today? 39:15 Phone 855-74-RIDGE | www.RidgeLendingGroup.com | [email protected] 40:23 HELOCs on income property: difficult to find, 65% LTV. 41:27 Tax-deductible interest, standard deduction threshold. Resources Mentioned: 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

#200: Discover your "why" in life and real estate. You should have a selfish why and an altruistic why in real estate investing. I summarize today's economy and asset values: GDP growth, real estate, stocks, interest rates, cryptocurrency, oil, dollar, precious metals, The Fed. As a Forbes writer, I'm going on offense, not defense. You hear the audio clip: "7 Minutes To A Wealthy Mindset". Enjoy this milestone 200th Episode - the Bicentennial Installment of GRE! _______________ 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: 00:52 Up and down market cycles. 02:02 You live a great life. 04:33 Your "why". 10:02 Why I'll never paint a wall or mow a lawn again. 14:58 Programming changes. 16:07 Today's economy, GDP, asset values. 25:12 At Forbes, I'm going on offense, not defense. 26:52 Audio clip: "7 Minutes To A Wealthy Mindset" video. Resources Mentioned: Videos: GetRichEducation.tv My Forbes article: Home Equity Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Apartment Investor Mastery: BradSumrok.com Turnkey RE: NoradaRealEstate.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book Education: GetRichEducation.com

#199: He thought this show was dumb, debt was bad. He originally listened to laugh rather than for financial education. In 2009, Get Rich Education (GRE) listener Dustin Jones suffered a personal bankruptcy as a result of high real estate commercial debt tied to properties with declining value. His goal was to be debt-free by age 40. In 2015, that all changed when he began listening to Get Rich Education. He learned that financially-free beats debt-free. Now Dustin embraces debt again by strategically turning equity into cash flow. He has $781,000 in debt, and hopes to have $1.1M to $1.2M by year-end. Isn't that counterintuitive? It's a fascinating story of tragedy, resilience, learning, strength, and self-belief with remarkable Michigan-based GRE listener Dustin Jones. _______________ 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: 03:47 Building a real estate portfolio in Flint, MI. 05:48 Declining property values and rent incomes. 08:46 Bankruptcies. 09:36 Calling notes due generally doesn't happen on performing, residential loans. 12:52 Dustin thought debt was dumb. 13:56 Finding GRE in 2015 and laughing at how it first sounded like nonsense. 19:00 Applying abundant concepts. 21:33 Buying 5 properties in Houston, Memphis, and Montgomery. $1,250 cash flow. 25:46 Dustin's other investments. 27:47 Pitfalls with providers, inspections. 32:28 Meet Dustin and I in-person Sept. 6th to 9th! Learn more at: www.GetRichEducation.com/Belize. Resources Mentioned: Dustin's e-mail: [email protected] Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Apartment Investor Mastery: BradSumrok.com Turnkey RE: NoradaRealEstate.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book Education: GetRichEducation.com

#198: The five ways real estate pays you, your monthly cash flow and using HELOCs are three listener questions that I answer today. Home inventory is so low that machine learning and artificial intelligence are being used to predict when someone is likely to sell. ATTOM Data's Daren Blomquist tells us where today's housing values are compared to pre-recession peaks. 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: 00:57 How would $1,500 monthly cash flow help me? 04:00 The "5 Ways" real estate pays you. 06:40 HELOCs. 26:16 Daren Blomquist interview begins. 29:00 Machine learning, artificial intelligence in real estate. 35:00 Higher mortgage interest rates = higher home prices. 38:18 National median housing prices vs. "pre-crash" highs. 40:30 Housing values in "stable" markets. 43:38 Get Rich Education TV. Resources Mentioned: www.attomdata.com Get Rich Education TV: GetRichEducation.tv Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Apartment Investor Mastery: BradSumrok.com Turnkey RE: NoradaRealEstate.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book Education: GetRichEducation.com Hey, welcome in to Get Rich Education, Episode 198. I'm your host Keith Weinhold and I'm going to answer a few listener questions today… ...about your cash flow, your total rate of return, and finally, Home Equity Lines Of Credit. Then we're going to have one of the top real estate trend trackers in the nation join us here later. Let's get right into it. Ellis from Gastonia, North Carolina asks, "Keith, Episode 188 had a great breakdown of how run you all of the numbers on an income property. The thing I'm wondering about is that your example only resulted in a positive cash flow of $150 on that property. With the maximum of 10 conforming loans that we can get, that's only $1,500 in monthly cash flow. How would that be enough for us to leave our job?" Thanks, Ellis. And, of course, not everyone that listens here wants to have their passive real estate income replace their passive job income. Though many do. ...and it's not a get rich quick thing...it's about incrementally building up durable cash flow streams over years. Well, Ellis, and I'm not sure how many shows you've listened to. That example of the $150 cash flow was just for one SFH - and really for one of the lower-cost ones - the purchase price on that was 70-some thousand dollars. It was in Memphis. So most of the income properties you buy will have a higher purchase price, higher figures, and often a higher cash flow. Really, $1,500 with ten properties would be about as low as a projected number could possibly get. So Ellis, if you're married, both you and your spouse - you each qualify for 10 one-to-four unit properties...20 total and BTW… ...you want to put those in your individual names. If both you and your wife were on the loan, that would count as a strike against each of your limit of 10, so as you buy, alternate back-and-forth - you own the first one, she owns the second, you own the third, and so on, or something like that. So that's 20 doors minimum there - or I guess 19 since your primary residence is part of that formula, plus if you have some duplexes or four-plexes in there, that might be 25 or 30 or 40 doors. So, there's so many reasons why you would likely have substantially more than $1,500 in passive monthly cash flow. Then there are financing programs beyond conventional ones, you might also have some 5+ unit apartment buildings, some agricultural parcels or a mobile home community, or maybe you even got a couple low-cost properties paid-off and don't think it's worth getting a loan for tiny amounts, so they produce cash flow although there's no loan there… ...there are a ton of reasons why it would be way more than $1,500. Thank you for the question, Ellis. ...And another important thing to remember there is that we're only talking about cash flow - which is only one of five simultaneous profit centers that you typically have. But cash flow is a key profit center because it's the most liquid one. Jessy from Sacramento, CA says, I love your show. It's flipped my financial mindset totally upside-down, changed my family's life, and changed what I thought was possible for us. Part of what I love hearing about is that 5 Ways You're Paid in real estate. Ah - then he (or she?) shows me an example here in the question of 30% for leveraged appreciation + 6% cash flow , 5% loan paydown, 4% tax benefits, 3% inflation-hedging = a total return of 48%. Yes, those are the five ways that real estate investors often have as profit centers. The question Jessy asks about this is: "Though I get my properties from GREturnkey.com and these returns seem about right, I don't think I'm invested in any one market that per

#197: I dislike 401(k)s. They REDUCE your income. Sound investments INCREASE your income. Most people simply do not realize that there are alternatives to "defined contribution" retirement plans like 401(k)s, 403(b)s, 457s, IRAs, and Canadian RRSPs. Societal belief systems condition you into "Salary Reduction Plans" - which is, in fact, an early name of the 401(k)! The man credited as the "Father" and "Inventor" of the 401(k), Ted Benna, joins us today. He created and gained IRS approval of the first 401(k) savings plan. Even Ted laments that they should be "blown up". They are not serving participants in the way they were intended. Ted & I discuss alternatives to 401(k)s. Personally, I don't invest in 401(k)s. Admittedly, I used to, succumbing to poor financial education and societal conditioning. They're not designed to begin paying you until between age 59.5 and 70.5. That's a "life deferral plan" - awful. 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: 02:09 What exactly is wrong with a 401(k). 06:45 Replace your "Salary Reduction Plan" with a "Salary Increase Plan". 08:02 Similar plans like 403(b), 457, IRA, Canadian RRSP. 09:30 Ted Benna Interview begins. 1980 roots. 12:45 Reducing employee wages. 13:37 Benefits and drawbacks of 401(k)s. 18:51 Fees. 25:43 Why 401(k)s should be "blown up". 32:02 Comparing "Get Rich Education" vs. "401(k)". 34:44 What does Ted Benna do today? 36:01 My summary. Resources Mentioned: Ted Benna's website: Benna401k.com Ted's charity interest: Compassion.com Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Apartment Investor Mastery: BradSumrok.com Turnkey RE: NoradaRealEstate.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book Education: GetRichEducation.com

#196: For under $20,000, you can own deeded agricultural property. It produces cash flow from the crop harvest. Food is an innate human need. Earth's population grows by 200,000 people daily. But arable land has decreased by 1/3rd in just the last forty years! You can invest in half-acre parcels of coffee and cacao for appreciation and cash flow. They're deeded to you. The parcels are turnkey-managed by an expert team including agronomists, soil scientists, biologists, a value chain analyst, and laborers. These are higher-grade coffee and cacao varietals - specialty coffee and fine-flavored cacao. Coffee is the second-most traded commodity in the world (oil is #1). We discuss the benefits, risks, cash flow, and your projected ROI. Learn more: see the Coffee and Cacao Investor Reports. 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: 01:14 The world needs food. It's population grows by 200,000 people daily. Arable land decreases. 06:15 Previously, this guest appeared with us on GRE Episodes 28, 60, 125, 157. 07:40 Coffee tree parcels in Panama, cacao tree parcels in Belize. 11:07 Team of farm management pros. Soil science. 18:13 On-site handling adds "single estate" value to beans. 21:16 Who is your end consumer? 27:18 Annual cash flow from annual harvests. 31:20 Trees don't vacate property. Tenants do. 33:20 11% return plus potential appreciation. 34:00 Half-acre parcels available now: $18,900 coffee, $25,725 cacao. 35:18 Commodity prices. 37:36 Attend a coffee and cacao field trip. 39:37 The world has about 200 nations. How many do you own property in? 43:17 Learn more: see the Coffee and Cacao Investor Reports. Resources Mentioned: Coffee Report: GetRichEducation.com/Coffee Cacao Report: GetRichEducation.com/Cacao Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Apartment Investor Mastery: BradSumrok.com Turnkey RE: NoradaRealEstate.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book Education: GetRichEducation.com Get Rich Education is brought to you by Ridge Lending Group, Apartment Investor Mastery, Norada Real Estate, and Producers Wealth. Welcome to GRE. From Toledo, Belize to Toledo, Ohio and across 188 nations worldwide, this is Get Rich Education. I'm Keith Weinhold. We need to talk about what really could be one of the most important issues of our time today. Now, we typically talk about providing residential housing in the United States here...and because shelter is an innate human need - and that need is still underserved in a lot of markets today. Well, when you think about food, shelter, and safety - beginning with food - let's pull back and look at the global picture. I know this sounds incomprehensible if you didn't already know it, but 200,000 more people are here on earth today compared to how many were here yesterday. Yes, every single day we add 200,000 more people to the planet...and just imagine them all sitting down at a dinner table tonight - and none of them were there are at the world dining table just yesterday. The earth's population is expected to swell from 7 & a half billion today, and by the end of the century, we're expecting more than 11 billion. So the innate need for human calories isn't just here to stay, it keeps growing fast...every day. At the same time, in just the last 40 years, earth has lost 1/3rd of it's arable land - and that fact alone is unfathomable to some people. Now, it actually gets even more critical. Among this growing population and less arable land, humans are consuming more calories on a per capita basis, and as societies develop, they demand a higher quality calorie. So, needless to say, demand for higher-end and gourmet items is accelerating even faster than those average quality items that we would call generic or commercial-grade. Well today, we're talking about agricultural real estate investing - and in two products in particular - coffee, and cacao. Cacao is the base product for chocolate. Both coffee and cacao are produced on small trees in central America. ...and in both cases, it is high grade. Now, in coffee, the high-grade term is speciality coffee - and it's become quite sophisticated. In fact, there's a 100-point coffee grading scale, specialty coffee must score 80 point or higher. In cacao, the term for the higher-end...I guess...varietals is "fine-flavored" cacao. So rather than a milk chocolate bar, think about those bars with maybe 70% or 80% cacao content that come in a fancy wrapper with some gold-colored foil. Now, can coffee be considered a food? I'm not really sure. But it sure has demand. When you'd get off a plane at the airport even at the height of the Great Recession a decade ago, you'd still see the long line at the coffee shop… ...and that line wasn't ANY shorter - even i

#195: If I had maxed out a loser 401(k) when I worked a "day job", you never would have heard my name. I'd still be working. Learn how to build multiple income streams. The average millionaire has 7 income streams. Be frugal with your time, not your money. I discuss the mindset around building passive income to have time freedom in your life. If you don't invest in real estate, then how else will you acquire wealth? Options explored. Be yourself. When you strictly trade your time for dollars, you aren't being yourself. When you have more time, it makes you more of what you are. Kim Butler of Partners For Prosperity joins us. She's an original Rich Dad Advisor. She & I discuss retirement, the importance of passive income, and more. "Financial planning" has an ugly connotation. Kim & I break it down. We discuss why people keep investing in losing 401(k)s, IRAs, and other "life deferral plans". 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: 00:46 You are an investor. 02:19 Your life's cash inflows & outflows. 09:16 Be yourself. 13:01 How you benefit when you're "halfway there". 18:08 Kim Butler interview begins. "Financial planning" has an ugly connotation. 25:57 Why do people still invest in 401(k)s and IRAs? 28:46 Retirement. 36:04 Why every human is an investor. 39:42 The 7 Principles Of Prosperity: Think-See-Measure-Flow-Control-Move-Multiply. 42:18 Whole Life Insurance. 45:36 Book recommendations. 50:44 If I had maxed out a 401(k), you never would have heard of me. Resources Mentioned: Partners4Prosperity.com Book: The Mystery Of Capital Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Apartment Investor Mastery: BradSumrok.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book Education: GetRichEducation.com

#194: The apartment building space is hot. Unless you're experienced, you need help from an expert that can help you navigate today's apartment environment. Brad Sumrok, "The Apartment King", joins us today. His apartment building students get results, closing dozens of larger apartment buildings every year. Brad began with buying a 32-unit building in 2005. Today, he provides forecasts to the apartment industry, and hosts live training events. Tens of thousands listen to his every word. But is it too late to buy apartments today? Apartment prices keep running up. Cap rates are compressed. Now, interest rates are higher. Brad tells you where to look today. I ask Brad, "What's an underlooked apartment market or niche today?" He names exact towns. Think you can't afford a $5 million building? Yes, you can. Brad tells you how. Learn how to outbid others when there are multiple offers for an apartment. His in-person events draw large, energetic crowds and he fills bus cavalcades with hopeful investors on apartment field trips. 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: 01:27 Leveraging rent increases. 04:10 Brad Sumrok Interview begins. 07:28 Is it too late to buy apartments today? Prices are higher. 09:36 Cap rate compression. 10:23 Interest rate rise. 12:06 There's still a housing shortage. 13:24 What's an underlooked apartment niche today? 15:23 Value-add buy-and-hold apartments. 19:23 "I can't afford it." Yes, you can. Here's how. 22:38 Carried interest. 24:20 Financing. 26:04 Tenant and property character. 28:05 Multiple offers - how to outbid others. 32:13 Brad's training events are super-popular. The next one is July 21st-22nd. Resources Mentioned: Brad's Live Event, July 21-22: BradSumrok.com Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Apartment Investor Mastery: BradSumrok.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book Education: GetRichEducation.com

#193: If you raise the rent, these deadly mistakes will make your tenant move out. Learn how to effectively raise the rent in a way that makes your tenant stay. Rent escalators. You learn how to leverage your rent hikes. I review exactly what to include and exclude from your Notice Of Rent Increase Letter. Where do I get my investing and real estate information from anyway? I tell you. ATTOM Data Solutions' Daren Blomquist reveals the exact city where Amazon is most likely to locate their second headquarters (HQ2) based on their research. Flipping activity can be predictive of "up-and-coming" neighborhoods. 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: 01:42 You can leverage rent raises! 04:21 Mistakes to avoid in rent hikes. 07:01 Steps to raise the rent properly. Rent escalators. 10:36 Notice Of Rent Increase Letter. 15:55 Daren Blomquist Interview begins. 16:42 Amazon HQ2. 23:59 Neighborhood grading. 27:57 Flipping activity can predict "up-and-coming" neighborhoods. Resources Mentioned: AttomData.com Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Apartment Investor Mastery: BradSumrok.com Find Properties: GREturnkey.com GRE Book: GetRichEducation.com/Book Education: GetRichEducation.com

#192: Your property can be damaged by Rent Control; so can your community. Today, you learn how to avoid it. You buy, sell, and rent your property at market value. But what happens when an outside force comes in and disrupts your "free market"? I also tell you about a major tenant problem from one of my own apartment buildings. To avoid losses, learn what clauses to put in your Lease Agreement. 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: 01:30 The Broken Window Fallacy. 06:42 30-year mortgages vs. 15-year mortgages. 07:53 Rent control. 20:21 A flood in my apartment. Renter's Insurance. 24:33 Security deposit and last month's rent. 28:10 Resort property with cash flow. Resources Mentioned: Keith's Recommended Reading List Book: Economics In One Lesson The Landlord's Almanac Placencia, Belize Investor Report Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Apartment Investor Mastery: BradSumrok.com Find Properties: GREturnkey.com GRE Book: 7 Money Myths Education: GetRichEducation.com

#191: What makes fourplexes such great wealth creators? Financing and economies of scale. But there's one giant pitfall with many fourplexes. Today's guest, Steve Olson of the Fourplex Investment Group (FIG) has an elegant solution to the pitfall. He tells us how to maintain your investment's value for long-term returns. You need to safeguard yourself against neighborhood blight to protect your investment's value. 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: 01:30 Fourplexes are the largest building for residential financing. 03:27 Safeguarding against neighborhood blight. 07:00 The FIG: Fourplex Investment Group. 09:09 How to repel neighborhood blight. 14:50 Pro formas. 17:48 Dealing with today's compressed cap rates. 21:15 Pre-construction. 24:55 Exit strategy. 28:05 Fourplex prices. 32:55 Financing. 36:42 Property management. Valuation, appraisals. 38:54 Duplexes. 41:40 Keith's analysis of the investment. Resources Mentioned: FIG: Fourplex Investment Group E-mail: [email protected] Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Apartment Investor Mastery: BradSumrok.com Find Properties: GREturnkey.com GRE Book: 7 Money Myths Education: GetRichEducation.com

#190: Did you think that inflation only makes you poorer? Learn many simple examples about how inflation makes you wealthy. Here's a clue: inflation impoverishes savers and enriches debtors. MacroEconomist Richard Duncan joins us. He predicts the future direction of inflation and interest rates. Learn the difference between RE appreciation and RE inflation. Richard tells us why "money printing" no longer equals inflation. Globalization could be reversed. This pushes inflation higher. Richard tells you how to act in response to what's coming. Richard's brilliant economic work is at RichardDuncanEconomics.com. Get 50% off a MacroWatch subscription with the Discount Code "GRE". 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: 01:03 I used to ask myself how RE investing could be any good. 02:18 Signs of consumer inflation. 04:05 Simple examples of how inflation makes you wealthy. 07:41 Financial forces you can and cannot control. 11:30 Is some inflation good? 13:40 Appreciation vs. Inflation. 15:16 Why "money printing" no longer equals inflation. 24:20 How globalization could reverse, stoking inflation. Tariffs, trade war. 27:27 Richard tells you how to act in response to what's coming. 31:06 Richard's brilliant economic work is at: RichardDuncanEconomics.com. Get 50% off a MacroWatch subscription with the Discount Code "GRE". 32:32 My summary of Richard's interview. Resources Mentioned: MacroWatch - Use code "GRE" for 50% off How You Can Profit From Inflation Inflation Calculator Cash Flow Banking: ProducersWealth.com Mortgage Loans: RidgeLendingGroup.com Apartment Investor Mastery: BradSumrok.com Find Properties: GREturnkey.com GRE Book: 7 Money Myths Education: GetRichEducation.com

#189: If an income property is so good, why would anyone sell it to you? You get answers. I tell you how long it took me to quit my day job to replace it with passive income. Single-family income properties vs. apartment buildings are compared. Invest in a growing place. Florida keeps growing due to: affordable housing, warmth, coasts, and it's the only income tax-free state east of the Mississippi River. The Orlando, Florida area has grown 20%+ in just the last decade. Turnkey RE investing means that a property is: 1) Already rehabbed. 2) Tenanted. 3) Under Management. 4) Produces income from Day One. $80-$150K, 36-month avg. tenant duration, 1.8% property tax, rent-to-price ratio ~0.9%. Areas north of Orlando work best. Some areas to the south have economies more dependent on fickle tourism. Learn more about investing in Orlando turnkey property at: GetRichEducation.com/Orlando 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 I discuss how long it took me to quit my day job. 02:51 Single-family income properties vs. apartment buildings. 10:34 Why Florida grows at a phenomenal rate. 16:11 Two incomes doesn't have to mean "both parents work". 18:02 Definition of "turnkey". 19:25 Pros and cons to turnkey RE investing. 22:02 Communication with investors. 24:52 Submarket selection. 26:35 The numbers. 31:24 If the property is so good, why would anyone sell it to you? 33:42 Housing demand far outstrips supply. 36:00 Older tenant demographic in central Florida. 38:16 Bulk and standardized materials. 39:35 Get the Orlando Investor Report at: GetRichEducation.com/Orlando. Resources Mentioned: Orlando Property: GetRichEducation.com/Orlando Cash Flow Banking: ProducersWealth.com Mortgage Loans: RidgeLendingGroup.com Apartment Investor Mastery: BradSumrok.com Find Properties: GREturnkey.com GRE Book: 7 Money Myths Education: GetRichEducation.com

#188: Learn to run the numbers step-by-step on a real income property and determine your ROI on 1502 Merrycrest Drive in Memphis, TN. We discuss how to create your own economy. It depends on YOU, not the national government or the local economy. Your income property is merely a widget that secures an income stream. Many people self-manage and have no margin for professional management. You often get a better return passively than they do actively. Why pin your hopes on compound interest? Consider compound cash flows. Inaky Strick joins us to tell you what he's learned from attending elite live events. 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 How to create your own economy. 05:23 Your income property is merely a widget that secures an income stream. 06:54 We run step-by-step numbers on 1502 Merrycrest Drive, Memphis, TN and determine your cash-on-cash return. 14:14 Real estate math is simple. 15:20 Total ROI calculated with the "5 Ways" you're paid. 19:52 Why I don't consider "instant equity" as a sixth way you're paid. 21:17 Compound cash flows. 25:40 Inaky Strick tells us what he's learned from attending live investing events. 34:25 How Inaky affords going to all these events. 39:35 Your self-belief. Resources Mentioned: InakyStrick.com MidSouthHomeBuyers.com Events: GetRichEducation.com/Events Cash Flow Banking: ProducersWealth.com Mortgage Loans: RidgeLendingGroup.com Apartment Investor Mastery: BradSumrok.com Find Properties: GREturnkey.com GRE Book: 7 Money Myths Education: GetRichEducation.com

#187: A mortgage is a tool. Used responsibly, you can control 5x as much real estate with 20% equity than you can with a paid-off property. Risk is discussed. If I could, I would want 100-Year Mortgages rather than 30-Year Mortgages on my properties. You'll learn why. Graham Parham of Highlands Residential Mortgage joins us. He tell us the latest income property loan requirements today. We discuss conventional loans on 1-4 unit rental properties. Graham tells us about your Ability To Repay (ATR) factors that mortgage underwriters seek. We discuss your Debt-To-Income ratio limits, Reserve Requirements, interest rates today, credit scores, paying discount points, 30-year vs. 15-year mortgages, and appraisals. 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: 00:57 You can own and control more real estate if you have loans on them. 02:08 What's the risk of borrowing? 03:26 100-Year Mortgages. 09:24 Qualifying for loans if you don't have "W-2" income from a day job. 11:57 Loans for foreign buyers that want U.S. income property. 13:18 Ten loans with 20% down. 13:49 Ability To Repay (ATR). 15:52 Debt-To-Income (DTI) ratio example. 16:23 Your reserve requirements. 19:13 Interest rates today. 21:18 A 740 credit score is the highest that can help you. 24:23 Paying discount points. 28:03 ARMs and 30 vs. 15-Year Mortgages. 30:45 Example of one paid-off property vs five with 5:1 leverage. 33:43 Appraisals. Resources Mentioned: Graham's phone: 1-855-326-6802 Graham's website: TexasInvestorLoans.com Graham's resource: InvestorsLoanGuide.com Cash Flow Banking: ProducersWealth.com Mortgage Loans: RidgeLendingGroup.com Apartment Investor Mastery: BradSumrok.com Find Properties: GREturnkey.com GRE Book: 7 Money Myths Education: GetRichEducation.com

#186: You're paid five ways as a real estate investor. Rich Dad Tax Advisor Tom Wheelwright and I add up those five rates of return and provide you with an estimated Year One ROI. We discuss how to make trips to visit your turnkey rental property a tax-deductible event. With the new tax law, taxes are adjusted for "inflation" more often than previously. But CPI isn't used. It doesn't keep up with "real" inflation. Tom is the author of "Tax-Free Wealth". 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: 01:00 The Masters Law. 04:39 Belize Investor Tour. 09:10 Tom Wheelwright and I on real estate ROI. 18:55 Real estate depreciation example. 24:34 Making your trip to visit your turnkey property a tax-deductible event. 33:23 Inflation and taxes. Resources Mentioned: More About Tom: Wealthability.com Belize Investor Tour: GetRichEducation.com/Belize Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Apartment Investor Mastery: BradSumrok.com ShadowStats.com Find Properties: GREturnkey.com GRE Book: 7 Money Myths Education: GetRichEducation.com

#185: You learn how to market your property well. You will have more interested renters and buyers, better quality clientele, and more and better offers. Curb appeal, photography discussed. We discuss what makes a good turnkey RE investing provider, including how some property managers want your tenant to turn over so that they receive more leasing fees! Today's guest owns a company that builds and provides new construction turnkey RE, which is why they have available inventory today. (Yes, really: today.) I recently visited their offices. Many managers don't want to sign tenants to two and three-year leases because: 1) It's easier to find tenants that sign one-year leases. 2) Managers get fewer leasing fees. Learn why today's provider doesn't do that. We discuss cash flow, rates of return and appreciation rates in Jacksonville, 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: 00:47 A well-marketed property means you have more interested renters and buyers. 03:16 Real estate photography. 08:53 Florida turnkey real estate. 12:30 The strength of the team. 16:23 New construction turnkey. 20:48 Tenant leases of 2 to 3 years duration. 26:46 Why property managers have an incentive to turn over tenancies. 29:38 Sales price $160K-$200K. Average: $1,350 rent, $180,000 purchase price (0.75% RV ratio). 32:26 Appreciation rates. 35:25 Future of rents and prices. Resources Mentioned: New Construction Turnkeys: GetRichEducation.com/Jax Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Apartment Investor Mastery: BradSumrok.com Find Properties: GREturnkey.com GRE Book: 7 Money Myths Education: GetRichEducation.com

#184: Higher interest rates are obviously bad for real estate investors that make new purchases. Few realize that higher interest rates often translate into HIGHER housing prices. How could that be true? I explain. MacroWatch's Richard Duncan joins us. He tells us why interest rates are likely to rise substantially in coming years. Learn why low inflation pushes down interest rates and why high interest rates cool an economy. Also learn why the U.S. is now destroying billions of dollars every month, and tariffs' effect on interest rates. 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: 02:13 How higher interest rates translate to higher home prices. 10:05 Decades ago, how Richard knew lower interest rates we coming in the early 2000s. 12:23 Why low inflation pushes down interest rates. 13:27 Higher interest rates cool an economy. 15:35 Why long-term interest rates could be pushed substantially higher. 19:06 Quantitative Easing ended. Quantitative Tightening has begun. 21:58 Tariffs and the looming "Trade War". 25:16 Reversing globalization can increase inflation and interest rates. 26:26 Why fixed-rate mortgages are better than adjustables. Resources Mentioned: MacroWatch: RichardDuncanEconomics.com Article: Higher Interest Rates Mean Higher Home Prices Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ValhallaWealth.com Apartment Investor Mastery: BradSumrok.com Find Properties: GREturnkey.com GRE Book: 7 Money Myths Education: GetRichEducation.com MortgageNewsDaily.com

#183: There is an asset type where you can get both cash flow and have the peaceable enjoyment of the premises yourself. Most people regret buying vacation property because they've either found that: 1) They don't use it often. 2) They're managing it as a rental to others. 3) They bought a timeshare. Imagine being able to buy tropical beach property in Placencia, Belize: it's closer to most of the U.S. than Hawaii, with warmer water than Hawaii, and at low prices like Hawaii had decades ago. Buy vacation property that provides you with monthly cash flow, is in an up-and-coming place, and is turnkey-managed. Sometimes you must ask: "What's my Return On Life?" 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: 03:46 One special world place with enormous opportunity. 06:39 Trends and indicators of new real estate development. 09:11 Placencia, Belize. 13:42 Infrastructure, existing development, geography, amenities. 18:10 Property construction on tropical islands. 20:09 Utilities. 22:44 Turnkey-management detail. 27:10 Safety and security. 29:10 Minimum investment is $50K. 32:05 Investor tour. 38:23 Cave tubing, waterfall, beaches, community, islands 40:58 Book a tour & meet me. I'll be there July 20th to 23rd, and again Sept. 6th To 9th, 2018. Get started at www.GetRichEducation/Belize. Resources Mentioned: GetRichEducation.com/Belize Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ValhallaWealth.com Apartment Investor Mastery: BradSumrok.com Find Properties: GREturnkey.com GRE Book: 7 Money Myths Education: GetRichEducation.com

#182: Using your home as an ATM or credit card? Is this irresponsible? A listener and I discuss the risks and rewards of using a Home Equity Line Of Credit (HELOC) to cash out your home equity for use in income property investing. Our guest is a Get Rich Education listener and Grammy-Nominated Music Producer Blake La Grange of San Diego, CA. Most people settle for "Maybe someday." Instead, optimize what you have now. Use leverage, debt and equity, and arbitrage to your advantage. Blake & his wife played the speculative property appreciation game well. Their $585,000 home soon appraised for $700,000+. This provided equity for them to transfer into income 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: [02:44] Meet Blake La Grange, San Diego-based GRE listener and Music Producer. [04:45] Blake's mindset change from debt-free to financially-free. [11:24] Blake & his wife's first home cost $585,000. [15:11] Private Mortgage Insurance. [17:17] $700,000+ home appraisal. [20:08] Home Equity Line Of Credit (HELOC). [27:54] Listening to GRE "like crazy". [31:06] Blake and turnkey real estate in Birmingham and Memphis. [38:27] Pay off rentals or keep exchanging? [40:22] Going from owning zero properties to one is most difficult. [45:22] Even if your mortgage balance is zero, you still have housing payments. Resources Mentioned: Guest's website: BlakeLaGrange.com Guest's e-mail: [email protected] How To Turn $100K Into $300K In Five Years Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ValhallaWealth.com Apartment Investor Mastery: BradSumrok.com Find Properties: GREturnkey.com GRE Book: 7 Money Myths Education: GetRichEducation.com

#181: Learn how to permanently reduce your taxes. At a W-2 job: the government gets paid first, Wall Street second, and you're third. I recite "A Tale Of Two Real Estate Markets". This story will shift your thought paradigm and make your jaw drop. Tom Wheelwright & I discuss income tax and capital gains tax - rates, history, and strategy so you legally pay the lowest possible rates. Learn why house flippers pay higher tax rates than buy-and-hold real estate investors. Where will tax rates be in the long-term future? Tom discusses. 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 "A Tale Of Two Markets". 13:10 At a W-2 job: the government gets paid first, Wall Street second, you third. 14:05 Income tax, Social Security tax. 30:13 Capital gains tax. 36:48 Thoughts about where future tax rates will be. Resources Mentioned: Wealthability.com BLS Unemployment Data Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ValhallaWealth.com Apartment Investor Mastery: BradSumrok.com Find Properties: GREturnkey.com GRE Book: 7 Money Myths Education: GetRichEducation.com

#180: Stop looking at properties. (What?) I discuss. Are you in real estate for appreciation, cash flow, or something else? If you focus on cash flow, does that mean less appreciation, and vice versa? We discuss when a market becomes "too hot to buy for cash flow" any longer. The Midwest has more affordable property and better cash flow but less recession resilience. Dallas-Fort Worth keeps showing appreciation potential, but cash flow is drying up. When a market heats up, rents don't "keep up" proportionally to a property's market value. We also discuss low appraisals. Appraisals are what the bank uses to verify the quality of their collateral. 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: 00:54 Stop looking at properties. (What?) 03:36 The importance of cash flow, appreciation. 07:07 The Midwest: more affordable housing, better cash flow, but less recession resilience. 08:52 Dallas-Fort Worth's appreciation. 11:00 When a market becomes too hot. 14:48 "Lump Sum Cash Flow" defined. 16:23 With 5:1 leverage and 6% appreciation, $100K becomes $300K in five years. 18:22 Blended portfolio. 21:10 Median rent income vs. median housing value. 25:17 Why low appraisals can occur. Resources Mentioned: Dallas property: GetRichEducation.com/Dallas Kansas City property: GetRichEducation.com/KC St. Louis property: GetRichEducation.com/StLouis GRE Book: 7 Money Myths Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ValhallaWealth.com Find Properties: GREturnkey.com Education: GetRichEducation.com

#179: Money is an abundant resource. I tell you why. When you're looking to move accumulated equity, should you do a: 1) Straight sale. 2) 1031 Tax-Deferred Exchange. 3) Cash-out refinance. Avoid lazy money. My personal internet bill is $145, cable $126, phone around $100. Who cares? You learn how much I like to spend on a hotel. Uber and Lyft are killing the parking business. Learn how to estimate rental property operating expenses. 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 Wealthy people's money either starts in RE or ends up in RE. 02:03 Listener question about 1031 Exchange vs. Cash-Out Refinance. 13:20 Lazy money. 15:04 Other podcasts. 16:09 Free book. 19:11 More on Dave Ramsey. 20:26 Why money is an abundant resource. 24:36 "Uber Really Is Killing The Parking Business". 29:18 Residential real estate is here to stay. 30:07 "Return On Life" and passivity. 32:47 Don't underestimate rental property expenses. Resources Mentioned: Article: Uber Is Killing The Parking Business GRE Video: Operating Expenses GRE Book: 7 Money Myths Podcast: The Real Estate Guys Podcast: Cashflow Ninja Podcast: The Real Estate Way Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ValhallaWealth.com Find Properties: GREturnkey.com Education: GetRichEducation.com Welcome to GRE, Episode 179. I'm your host, Keith Weinhold. From Saratoga, Australia to Saratoga Springs, New York and across 188 nations world wide. This is Get Rich Education and we are cultivating a Real Estate Of Mind here. That is because wealthy people either start out in RE, or wealthy people's money ends up in real estate. It's either one or the other. ...and you know, the most important piece of real estate may very well be - that real estate right between your two ears - your mind We come from an abundantly-minded place here at GRE. If you want to learn about combining vinegar and water in a bottle because it's cheaper than Windex. Well, you're not going to learn about that here. If you've been wearing the same pair of monthly contact lenses for the last two years...then, well, you didn't learn to do that here either here. In fact, money itself is an abundant resource, not a scarce one. We're going to talk more about that today. We're going to talk about passive income and define what exactly that means. We're also going to talk about how to best increase your velocity of money. Is it by doing a 1031 Tax-Deferred Exchange or a Cash-Out Refinance - with your income property. Let's go to the listener question about this. Listener Jacob Ayers asks: To move equity, should I do a 1031 Tax-Deferred Exchange or a Cash-Out Refinance? Thank you for that rather eloquently-stated question there, Jacob - and it is a germane time to discuss this. There's a lot of equity out there that is ripe for harvest because most markets have appreciated a good 7-8 years in a row here. Really, this is a question about moving equity to keep it working for you. What is the best vehicle for increasing your velocity of money? Since the return from property equity is always zero, ideally you want to take a big chunk of it and splinter it off into a bunch of little pieces and that way you can leverage more property. Let's back up. There are actually three ways for you to move equity should you so choose that it's right for you. The first way is to... Sell Your Property - That way, you can get all of your equity out. Now, Jacob, you're a savvy investor so that's why you probably didn't even bring that up as one of the ways that you can move equity. Because, of course, the big problem with this is that when you sell an income property. You could sell your current equity-heavy property and buy another. But the problem with selling is that you'd probably have to pay capital gains tax, which would reduce the equity you have available to re-invest. You're also going to have to pay depreciation recapture. Yep, that is all of the depreciation that you wrote off against your taxes every year that you owned the income property will be recaptured off that first income tax return you file after the building sale. So you might have a nice gain but the tax hit is harsh. That is, of course, unless you move your equity in the second of three ways and you perform a 1031 Tax-Deferred Exchange. If you meet the rules of the 1031 Exchange, you can avoid all of the nasty bite of the capital gains tax and all of the depreciation capture. Yes, it can be 100% avoided. In fact, the Exchange is the best way to move your equity. If you follow the rules and do the exchange properly, you can move 100% of your net equity, tax-free. Sometimes people point out that exchanging is really tax-deferred, not tax-free. But, c'mon, the exchange itself, if done correctly, is tax-free. The capital gain is ca

#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 Conditio

#170: You can live a rich life and leave a rich legacy at the same time. Guest Rachel Jensen and I discuss how. Timber is a hard asset that physically grows in size, and often grows in value at the same time. Your real estate, gold, or stock share might increase in value - but it doesn't increase in size at the same time like timber does. Among timber varieties, you've probably heard of teak wood but might not know much about it. It has great value due to its durability. Teak's natural oils make it resistant to fire, pests, and the elements. That's why teak is so popular for boats, decking, furniture, and more. Teak was even used on The Titanic! The world continues to have more humans and less arable land. Teak products have been used for over 300 years. This makes teak supply vs. demand fundamentals sound for investors. Traditionally, most timber investing was done by ultra-wealthy people, and prestigious Ivy League endowment funds like Harvard and Yale (they both still invest in timber). Today you'll learn about how everyday investors can invest in teak parcels: Land titled to you that can appreciate in value. Divided 1/4-acre parcels where you get income from the teak harvest. Low cost of entry. Available inventory at this time. Turnkey-managed. Light taxation. Use with cash or IRA funds. Optional qualification for a residency program. Ability to gain both shorter-term income for yourself, and a legacy for others. You'll learn that our provider offers Get Rich Education followers like you a discount per parcel for a limited time. 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: 01:51 Timber vs. gold. 03:17 One particular timber type - teak wood - is particularly valuable. 06:42 Teak properties and uses. 10:30 Supply vs. demand for teak. 15:15 Historically, only the wealthy invested directly in timber. 18:47 Surveying small parcels of teak hardwood for "average investors". 22:17 Teak parcels can be titled to you. You also own the trees on the land. 23:47 Light taxation. Panama stability. 26:47 Parcel size and cost. 27:45 Turnkey management. 30:23 Reforesting your parcel can qualify you for Panama residency (optional). 35:10 Learn more with a special report at GetRichEducation.com/Teak. 37:45 The provider made 4-6 months financing is available for you as a GRE listener. Resources Mentioned: GetRichEducation.com/Teak Wayfair.com RidgeLendingGroup.comValhallaWealth.com GREturnkey.com GetRichEducation.com

#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

#166: Changes to the 1031 Tax-Deferred Exchange, 27.5 year tax depreciation, the Estate Tax and more are coming. It will affect you as an investor. Rich Dad Advisor Tom Wheelwright is back with us. He details the winners and losers expected from the most sweeping tax reform that the U.S. is set to experience since 1986. First, Keith discusses 6.2% national real estate appreciation, and different ways to think about real estate diversification. Individual tax benefits are going away. Business tax benefits are increasing. 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: 01:08 Housing prices are up 6.2% year-over-year per Case-Shiller. 03:00 Diversification. 05:18 New construction turnkeys through GREturnkey.com. 09:13 Tom Wheelwright interview begins. 15:12 Depreciation durations are changing to 25 years for both residential and commercial. 15:50 1031 Tax-Deferred Exchange changes to the personal property portion. 18:37 Later, there will be individual tax rate changes. 22:35 More on 1031 Tax-Deferred Exchanges. 23:32 Estate Tax. 27:42 These are the greatest tax changes since 1986. 28:23 Limitation on offsetting your taxable gains with losses. 30:39 I review the basics of tax depreciation on income property. Resources Mentioned: Tax Free Wealth Advisor | 866-467-5809 Case-Shiller Housing Price Index latest RidgeLendingGroup.com Valhalla Wealth GREturnkey.com GetRichEducation.com

#165: Overcome the fear of quitting your job and replacing it with passive income from real estate investing. Avoid these mistakes before you quit your job. I discuss some mindsets that you should adopt before you quit (if you even want to). I open up to you and tell you how I felt and what I thought about quitting my job. Time vs. money - which one is more important? I give a clear answer. People fear future poverty. That's one reason why most choose money over time. We discuss which one makes you happier - more money or more time. You learn how to measure your wealth. If you don't have the time, we discuss how to "find the time". I've learned that most people want freedom more than money. There is a solution to life's money vs. time conundrum that few seem to mention - passive income. 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: 01:19 Why time is more important than money. 05:12 A research study found that 64% preferred money over time. But those that preferred time were happier. 06:44 Passive income solves the money vs. time conundrum. 08:09 How to measure your wealth. 09:20 I relate my experience of quitting my job. Overcoming fear. 14:14 Buying time rather than selling it. 18:47 Employees haul water buckets. Investors and entrepreneurs build pipelines. 21:04 How car commuting keeps you poor. 24:33 The types of people I gravitate toward. 26:59 The Pareto Principle. 29:26 Finding the time. 31:17 Most want freedom more than money. 32:16 Options vs. obligations. 33:30 After 3+ years of continuity, I tell you why I changed the show introduction. Resources Mentioned: RidgeLendingGroup.com Valhalla Wealth GREturnkey.com GetRichEducation.com

#164: It doesn't take money to make money. It doesn't take YOUR money anyway. Rich Dad Advisor Darren Weeks is a real estate investor, entrepreneur, and is an expert at raising capital from others in order to fund real estate deals. He gives us the exact script that he uses for raising money from others. A confused mind won't buy. People only buy from you if they trust you and like you. He tells us how to quickly build this trust with strangers. Darren finds people for funding real estate deals at dentist and teacher conventions. Surprisingly, Darren also reveals that he has available capital for your deal right now - in case you've got one. I discuss some ugly problems that I've had as a real estate investor this year, including homeless people squatting in one of my apartment buildings, and an eviction. Near the end of the show, I also review the 5 ways that you're simultaneously paid as a real estate investor, culminating in an ROI of 41%. Think it sounds impossible? I add it up for you. Most people just don't know how to calculate returns. 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: 01:52 I share my recent real estate problems with you - eviction, homeless squatters. 04:27 "Setting the tone" with your Property Manager. 08:55 Darren Weeks interview begins. 12:57 Paying seminar fees. 14:24 Tips for real estate investing outside your home area. 21:10 Entrepreneurs investing in real estate. 25:30 Mutual funds haven't created wealth for anybody. 27:22 Raising capital from others for deals. 30:30 Low-pressure sales tactics. 33:41 Are you "qualified" to raise money from other investors? 35:52 A confused mind won't buy. People only buy from you if they trust you and like you. 37:55 Surprisingly, teacher and dentist conventions are a source of deal funding. 39:48 United States vs. Canadian real estate investing. 30-year fixed rates vs. 5-year. 42:54 The 5 Ways You're Paid In Real Estate Investing. 45:46 Canada does not have a Capital Gains-Tax Deferral equivalent like the U.S.'s 1031 Exchange. 47:20 I finally have a 1-on-1 Wealth Coaching recommendation. Learn more at GetRichEducation.com/Coaching. Resources Mentioned: Darren Weeks - Amazon Black Rifle Coffee Company RidgeLendingGroup.com Valhalla Wealth GetRichEducation.com/Coaching GREturnkey.com GetRichEducation.com

#163: Home equity is a terrible investment - it is unsafe, illiquid, has zero ROI, makes your foreclosure risk greater, and it can leave your assets exposed to lawsuits. Some have called today's material shocking - a revelation. What you thought was black is white. What you thought was dark is light. Home equity can never go up in value, but might go down value. You must embrace mortgages. I collect mortgages every bit as much as I collect cash-flowing properties. I practice what I preach and only keep 15% equity in my primary residence, and minimum equity positions in investment properties. You would be better off burying money in your backyard than using it to pay down your mortgage. In the 1920s, a common clause in bank loan agreements stated that your loan could be called due at any time. That created fear which still resonates today. But it's no longer true; banks won't call your mortgage loan due anytime. 30-year vs. 15-year vs. interest-only mortgage loans are examined. Homes are not meant to store cash, they're meant to house families. Holding too much equity in any one property can kill your wealth potential. If you want wealth, you need to consider dispersing your home equity among many income-producing properties across different geographies. 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: 01:37 Eliminating debt often postpones your financial freedom. 04:05 In the 1920s, a common clause in bank loan agreements stated that your loan could be called due at any time. That's no longer true. 07:23 Paying off debt prevents you from accumulating assets. 08:48 Liquidity, safety, and rate of return are three reasons for keeping a high mortgage loan balance. 11:35 Why your foreclosure risk is greater if you have a high equity position. 16:33 Natural disasters. 19:56 Getting sued, asset protection. 21:40 The ROI from home equity is always zero. 26:15 Cash-out refinances and 1031 Tax-Deferred Exchanges. 28:12 Be your own banker. Create arbitrage. 29:00 30-year vs. 15-year fixed rate amortizing vs. interest-only loans. 30:42 Another example of home equity providing zero ROI and being unsafe. 33:04 Enjoy collecting mortgages. Equity transfers. 34:37 Those with less financial education want to pay off their properties. 36:55 Outsource lower use tasks. 38:56 Control. 40:04 Mortgage payments vs. housing payments. 42:27 A house is not an asset. 43:58 Act at RidgeLendingGroup.com for loans, GREturnkey.com for properties. Resources Mentioned: GREturnkey.com RidgeLendingGroup.com CorporateDirect.com GetRichEducation.com Here. It. Is. Hey, Welcome to Episode 163 of Get Rich Education - the show that at this point has created more passive income and financial freedom for busy people like you than nearly any other show in the world. I'm Keith Weinhold. Your financial forecast is going to be looking sunnier than ever after today. I'll tell you why. But you know what, your open mind might very well find the content in today's show shocking. Some people have believed the same old antiquated thing for so long, that they figure that the notion that has been believed for so long MUST absolutely be true - merely because it's been believed for a long time. Yes, just because you've believed something for a long time, doesn't make it true. It's sort of like - I think Yoda even said it - "You must unlearn what you have learned". A lot of times you need to unlearn the old before you've made room for new ideas. Eliminating your debt can actually postpone your financial freedom. You need to form both the habits and the actions that produce income streams. Well, you can't very well do that if you put your money toward retiring debt. Focusing too much on becoming debt-free means that your money is being sent away to retire. That's why you can't retire. You can't retire - or be financially-free - because you've sent your money away to retire - rather than work for you. If you could invest in something that could never go up in value but could only go down in value, then how much of that invest would you want? Well, zero - right? We're intelligent people that invest for the production of income, not speculate on a hope for capital gains. The investment that can never go up in value but can only go down in value is home equity - or even your rental property's equity. In fact, I have the ability to pay off my home's mortgage but I refuse to do so. I embrace mortgages. I don't fear them. Many Americans believe these following statements to be true, but in reality they are myths and misconceptions: OK, here we go: Your home equity is a prudent investment. FALSE Extra principal payments on your mortgage saves you money. FALSE Mortgage interest should be eliminated as soon as possible. FALSE Substantial equity in your home enhances your

#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. 10:57 Takeaways from the New Orleans Investment Conference. 15:50 Interview with Clayton Morris begins. 18:42 Clayton's buy-and-hold realization. 21:15 You don't have to reinvent the wheel. 22:48 Don't fall in love with real estate; it's just a vehicle. 26:46 Why C class properties are great investments. 31:58 How to find your Freedom Number at MorrisInvest.com. 35:07 Clayton's strategy for building wealth. 39:28 How the Freedom Number relates to wealth building. 42:10 What makes a passive income stream durable? Resources Mentioned: MorrisInvest.com Investing In Real Estate podcast RidgeLendingGroup.com CorporateDirect.com GetRichEducation.com GREturnkey.com

#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 you wealthy. 05:54 The New Orleans Investment Conference. 07:37 I'm the newest writer at Forbes. 09:55 Inflation transfers wealth from lenders to borrowers. 12:57 Garrett Sutton interview begins. 15:05 Common asset protection mistakes. 16:37 Buy-and-hold vs. flipping and asset protection. 18:55 Does every property need its own LLC? 21:04 LLCs in multiple U.S. states. What makes Wyoming special. 24:17 Reducing your administrative time in maintaining your LLCs. 24:50 Lower your audit risk. 26:33 California. 29:58 LLCs vs. Limited Partnerships (LPs). 32:41 Living Trusts. 34:34 New IRS rule to conform with by December 31st. Resources Mentioned: CorporateDirect.com | 1-800-600-1760 RidgeLendingGroup.com GetRichEducation.com GREturnkey.com

#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: GetRichEducation.com/Book Listen to this week's show and learn: 02:14 Turnkey defined. 04:52 Terry Kerr and Liz Nowlin interview begins. 08:01 Does your turnkey provider actually own the property? 12:13 Renovation quality. 15:12 $125,000 property vs. $62,000 property. 17:35 Neighborhood sweet spot. 19:18 Only 1 in 6 renter applicants are approved. 20:34 In-house property management. 24:37 Avoiding lengthy vacancies. Application fees. 28:21 Marking up materials. 29:50 Occupancy guarantee and renovation guarantee. 32:52 How your PM's in-house handymen can be good or bad. Resources Mentioned: MidSouthHomeBuyers.com RidgeLendingGroup.com GetRichEducation.com GREturnkey.com

#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, not you. But what about sentimental value and sunk cost? In a real estate sellers' market, should you ask for more than you expect, or only what you expect? Learn about the negotiation techniques of "log rolling", multiple offers, and "always get the last concession". We discuss introverts and negotiation. Negotiation is a learned skill; it is not innate. Learn exactly what to do to become a better negotiator in just the next 24 hours. In negotiation, where do ego and emotion fit in? 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: GetRichEducation.com/Book Listen to this week's show and learn: 01:22 Negotiation technique for a late-paying tenant: say these 7 magic words. 03:38 How I negotiated the price and terms on the exact home that I still live in today! 08:49 Kwame Christian interview begins. 10:01 Definition of negotiation. 11:38 Three uses of negotiation: 1) Use offensively. 2) Use defensively. 3) Strengthening relationships. 13:48 How to motivate your Property Manager to work hard on your behalf. 16:40 Let the other party speak first. 19:00 Midpoint negotiation. The psychological principle of "anchoring". 25:19 People will pay what an item is worth to them, not you. 27:18 Sentimental attachments and sunk cost. 29:50 In a real estate sellers' market, should you ask for more than you expect, or exactly what you expect? 31:33 Negotiation technique of "log rolling" (presenting a seller with multiple offers). 32:43 Always get the last concession. 34:55 Don't be a "nibbler". 36:11 Introverts and negotiation. 38:49 Negotiation is a learned skill; it is not innate. 40:30 Do this in the next 24 hours in order to be a better negotiator. 45:08 Ego and emotion in negotiation. 46:19 Hotel room negotiation technique. Resources Mentioned: Negotiate Anything podcast Negotiation Guide RidgeLendingGroup.com MidSouthHomeBuyers.com GetRichEducation.com GREturnkey.com

#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 inaugural annual event takes place Nov. 10-11 in Scottdale, AZ. 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: GetRichEducation.com/Book Listen to this week's show and learn: 01:33 Negotiation. 02:56 Scarcity vs. abundance. 06:10 No paycheck can buy yesterday. 07:27 Gene Guarino interview begins. 10:10 Don't move Mom into a hotel, but rather a small Assisted Living Home (ALH). 11:05 Location. 16:13 Options: You could own the real estate and lease the ALH business to others, the "Golden Girls" model. 18:36 Retrofitting a home for seniors. What physical amenities are needed? 20:54 Zoning and HOAs. 22:01 Monthly Profit & Loss Statement. 26:52 How to attract the more lucrative "Private Pay" residents. 31:06 What does an ALH Manager do? 32:47 Gene & his wife spend 5-10 hours / week. 34:48 Risks, licensing, documentation. 37:59 Financing options. 41:02 Professional vs. casual approaches to investing. 42:28 Getting the first resident in your ALH. 45:05 ROI = Return On Involvement. 47:44 Gene offers you a gift: FREE 6-Part Residential Assisted Living Training. 48:20 Gene founded the upcoming Residential Assisted Living National Convention in Scottsdale, AZ on November 10th and 11th. Resources Mentioned: FREE 6-Part Residential Assisted Living Training Residential Assisted Living National Convention : ralnatcon.com RidgeLendingGroup.com MidSouthHomeBuyers.com GetRichEducation.com GREturnkey.com

#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 and risks of owning your own producing cacao parcels. 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: GetRichEducation.com/Book Listen to this week's show and learn: 02:50 Renowned investor Jim Rogers says that agriculture is going to be the big thing over the next 20 years. 08:03 Why Belize? Why cacao? 11:29 Bringing professional agronomy and soil science to add value to cacao operations. 12:50 Treating the Mayan workers well. 16:20 Planting raw land parcels with cacao trees. 19:55 Three pillars of sustainability: economic, social, environmental. 23:27 Risks. 31:40 Predictability of income. 34:05 Projected yield of 11-13% annually. First cash flow expected in 15-18 months, annual thereafter. 36:35 Exit strategy. Legacy. 39:02 Visitor field trips to the agricultural fields. 41:11 Available inventory. 42:50 Professionalism. Resources Mentioned: GetRichEducation.com/Chocolate GetRichEducation.com/Coffee RidgeLendingGroup.com MidSouthHomeBuyers.com GetRichEducation.com GREturnkey.com

#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 statements from wherever you choose to live, and enjoy the passive cash flow. 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: 01:32 Why valedictorians don't become great financial successes. 02:48 Millionaires, with 2.9 average GPAs, are known for grit. 04:19 Is it worth it to go to college at all? 06:20 Unemployed vs. Unemployable. The difference? Options. 07:06 Nick Bond interview begins. 08:50 Nick's parents wanted him to go to college more for the experience than the education. 10:43 Does Nick even want a work-a-day job? 11:40 Nick's Dad told him not to get a real job! 12:42 What are Nick's friends doing? They're making $40K - $90K. 14:27 Student loan debt. 15:09 Home ownership. 16:55 What Nick does today: land flipping / investing. 23:00 Investor Summit At Sea. 25:02 Seeking freedom, giving back to community. 26:34 The Land Geek. 28:17 Business systems. 29:38 Qualifying for your home with your transcript and diploma. 31:04 Nick's website: www.reinvestrategy.com. 34:01 The value in Get Rich Education's free newsletter. Get it at GetRichEducation.com Resources Mentioned: College Costs More In America Than Anywhere Else 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