Podcast
Get Rich Education
Hosted by Real Estate Investing with Keith Weinhold · EN
This show has created more financial freedom for busy people like you than nearly any show in the world.
Wealthy people's money either starts out or ends up in real estate. But you can't lose your time.
Without being a landlord or flipper, you learn about strategic passive real estate investing to create wealth for yourself.
I'm show host Keith Weinhold. I also serve on the Forbes Real Estate Council and write for Forbes.
I serve you ACTIONABLE content for cash flow on a platter.
Our bottom line in real estate investing together is: "What's your Return On Time?" Where traditional personal finance merely helps you avoid losing, you learn how to WIN.
Why live below your means when you can grow your means?
Since 2002, international real estate investor Keith Weinhold owns multifamily apartment buildings to single family homes to agricultural real estate.
New episodes are delivered every Monday.
43episodes
Episodes
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587: Play to Win: Stop Waiting for "Perfect Conditions"
Jan 500:36:48Tap to summarizeKeith explores why the real goal of building wealth isn't luxury—it's protecting yourself from the emotional and practical pain of money stress. You'll hear how owning the right kinds of assets can change your lifestyle options over time, and why waiting on the sidelines can quietly erode your financial future. Keith also pulls back the curtain on a major, often overlooked force that has helped keep real estate values resilient for years, and what that means for anyone thinking about adding more property to their portfolio. Finally, you'll get a sense of the kinds of opportunities and strategies listeners are using right now to move from just getting by to playing to win in their wealth building journey. Episode Page: GetRichEducation.com/587 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com GRE Free Investment Coaching: GREinvestmentcoach.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments. For predictable 10-12% quarterly returns, visit FreedomFamilyInvestments.com/GRE or text 1-937-795-8989 to speak with a freedom coach Will you please leave a review for the show? I'd be grateful. Search "how to leave an Apple Podcasts review" For advertising inquiries, visit: GetRichEducation.com/ad Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— GREletter.com or text 'GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript: Keith Weinhold 0:01 Welcome to GRE I'm your host. Keith Weinhold, more important than building wealth is avoiding poverty. It's backed up by research. Learn about a force that constantly gives a boost to real estate values that you probably haven't considered before, and own assets or get left behind. I discuss a plan for doing it today on get rich education. Speaker 1 0:29 Since 2014 the powerful get rich education podcast has created more passive income for people than nearly any other show in the world. This show teaches you how to earn strong returns from passive real estate investing in the best markets without losing your time being a flipper or landlord. Show Host Keith Weinhold writes for both Forbes and Rich Dad advisors and delivers a new show every week since 2014 there's been millions of listener downloads of 188 world nations. He has a list show guests include top selling personal finance author Robert Kiyosaki. Get rich education can be heard on every podcast platform, plus it has its own dedicated Apple and Android listener phone apps build wealth on the go with the get rich education podcast. Sign up now for the get rich education podcast, or visit get rich education.com Corey Coates 1:14 You're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education. Keith Weinhold 1:30 Welcome to GRE from Dar es Salaam Tanzania to Darlington, South Carolina, and across 188 nations worldwide. I'm Keith Weinhold, and this is get rich education the voice of real estate investing since 2014 and it's a new year, part of the reason why you need to build durable wealth for yourself is actually not to be wealthy. It's really to avoid a lack of wealth. It's in order to pad yourself against poverty. Now, shortly, I want to talk to you more aspirationally if you are or soon plan to make 500k per year or more. Keith Weinhold 2:15 But first, there are a number of studies that show that beyond a certain level, more wealth barely increases your happiness level. In fact, if you ask many people, they say that doubling their income or doubling their net worth is what they really want, like, that's their goal. Like, in their mind, that's the benchmark in which they've made it. And you know what, when they double their income, though, then they want to double it again. They think that that is the next benchmark. So there can be this endless amount of wanting, because once you've doubled, you just want to keep doubling. But what's really more important is padding against money problems, because if having a little more doesn't change your happiness much, well, it's poverty that can really diminish a level of happiness and fulfillment in your life. So money problems don't just hurt your wallet. They actually hurt your emotions. And this isn't just some motivational poster idea, the statistics are clear. Multiple studies show that when money is scarce, when paying the regular bills feels like a monthly street fight, people report more sadness, more worry and even depression, not just sometimes, but constantly. The reality is that about 71% of Americans say that money is a major source of stress. My gosh, more than seven out of 10. So that's not a fringe category. That's the norm that say money is a major source of stress. Another study found that 42% of adults say money negatively affects their mental health. So close to half of the people walking around you right now feel emotionally beat up by their financial situation, and the gap gets even wider when you compare groups, when people experience serious financial hardship, nearly half, 49% show signs of depression among people without any financial hardship, only about 11% of that group show signs of depression. And Northwestern Mutual did an extensive study on all this. So it's not just a small difference, it's a completely different emotional reality, almost like two separate worlds. To put it plainly. For you, money will not guarantee happiness, but a lack of money can absolutely fuel sadness, and this matters. Because financial confidence isn't just about dollars. It's about dignity. It's about feeling like you're able to breathe, and it's about believing that your future can be bigger than your past. I mean, the research also shows the relationship flows in both directions. Money stress can make mental health worse, and poor mental health can make financial decision making harder. So it's sort of this loop, this cycle. And what breaks the cycle? It's not luck. It's not hoping the economy magically fixes all of its problems. It is going on offense, taking steps that build security instead of surrender, for most people, that turning point comes when they start owning assets, not just paying bills. It comes when money stops being a source of fear and it starts being a tool. Because though we focus on real estate investing here at GRE but ultimately it is a lifestyle improvement show. And before we're done today, I'm going to talk about what you can actionably do to go on offense. Now, what if you already have a higher income, or you expect to make a high income in the near term, if you're earning roughly $500,000 per year or more, and you value time efficiency in making sure that you don't live a rough quality of life. You are on the threshold of a tier that helps ensure that you can avoid some misery. Yes, there is a step change here that can help ensure you have a higher standard of living. Do you know what I might be talking about? Any idea 500k of income is where it begins now. It's only beginning here. At this point, to make sense, where you tilt into starting to fly private instead of flying commercial. Yeah, private flights. Now your situation is going to depend on more than just the income. It's whether or not you're single or you have kids and more, but it's at this income level where you can start to cover a $10,000 flight without biting into your essential living expenses. It's most justifiable when your time savings or your productivity gains translate into real value. I'm talking about things like business deals, meetings and schedules and the benefits of flying privately are pretty significant. Time efficiency is the real superpower here, drive up to the plane, wheels up in minutes. The flexibility is there. You can leave pretty much when you want. You can change your flight plans mid trip if you need to. You get access to smaller airports. That means you can land closer to your final destination and skip big city traffic congestion. You've got privacy and security, no crowds, no TSA stuff. You've got quality of experience, comfort, quiet cabins, custom catering, no competing for overhead bin space. Now even affordable private is still pretty expensive. It is substantially more than first class commercial seats, and I have had limited experience flying private, but at 500k of income, flying private can still feel like a stretch, even though it's doable for you, a more comfortable range is a million dollars or more of annual income, that's when private flights feel much easier to justify for business or lifestyle. Now, with $2 million of annual income or more, most heavy pri...
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541: Will a Boomer Selloff Make Housing Prices Crash?, This Vice is Destroying Young Men
Feb 17, 2025Tap to summarizeKeith discusses the impact of baby boomers on the housing market, noting that contrary to popular belief, many boomers are choosing to age in place. He also addresses the negative effects of gambling, particularly sports gambling, on young men, including financial ruin and increased bankruptcies. 54% of baby boomers state that they will never sell their homes. People aged 55+ own more than half of U.S. homes. The overall population growth in the US has grown at its fastest rate since 2001, reaching over 340 million. Millennials and Gen Z, the largest generations, are driving future housing demand. Resources: GRE Free Investment Coaching:GREmarketplace.com/Coach Show Notes: GetRichEducation.com/541 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments. You get paid first: Text FAMILY to 66866 Will you please leave a review for the show? I’d be grateful. Search “how to leave an Apple Podcasts review” For advertising inquiries, visit: GetRichEducation.com/ad Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE’ to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript: Automatically Transcribed With Otter.ai Keith Weinhold 0:01 Welcome to GRE. I'm your host, Keith Weinhold. All the baby boomers are about to sell off their homes and downsize, unleashing a glut of supply onto the market, and housing prices crash. Is there cogency to that theory or not? I give you a definitive answer, the Trump bump, then later, a pernicious vice is destroying more people's lives today, especially young men and almost no one is talking about this. It's leading to lower credit scores, more bankruptcies and even more suicides today on get rich education since 2014 the powerful get rich education podcast has created more passive income for people than nearly any other show in the world. This show teaches you how to earn strong returns from passive real estate investing in the best markets without losing your time being a flipper or landlord. Show Host Keith Weinhold writes for both Forbes and Rich Dad advisors and delivers a new show every week since 2014 there's been millions of listener downloads of 188 world nations. He has a list show guests and key top selling personal finance author Robert Kiyosaki, get rich education can be heard on every podcast platform, plus it has its own dedicated Apple and Android listener phone apps build wealth on the go with the get rich education podcast. Sign up now for the get rich education podcast or visit get rich education.com. Corey Coates 1:25 You're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education. Keith Weinhold 1:41 Welcome to GRE from Hyannis, Massachusetts to Hiram, Utah and across 188 nations worldwide. I'm Keith Weinhold, and you are inside get rich education episode 541 just another slack jawed and snaggletoothed podcaster here now a popular, I suppose, media narrative that's been out there for a long time is this premise that US housing prices are going to crash hard because all the aging baby boomers are going to sell their homes, and Boomers are the biggest generation in all of American history. This is just going to magnify the price collapse. It means far more home sellers than buyers. So soon enough, sellers will have to keep cutting prices. Everyone's going to undercut everybody to compete with all of these for sale homes. So as a result, everybody's property values are going to collapse today. Let's look at how bad it will get. Should you get ahead of this and sell it all now and then? I'll even tell you when this popular narrative will supposedly happen with boomers selling en masse, or won't it happen at all. That's what we're looking at, the term silver tsunami. You've probably heard that thrown around in the real estate world. It actually refers to pent up housing stock that older homeowners will eventually choose to sell, which would have that effect of flooding the market with all this new inventory. All right. Now let's define what we're talking about here. Baby Boomers are the generation born just after World War Two, between 1946 and 64 that makes them between the ages of 61 and 79 this year. Okay, so basically, these people are in their 60s and 70s. That's their age. My parents are baby boomers. President Trump is at the upper age limit for a boomer, but they're not all as old as you think. I mean the youngest baby boomers include Michelle Obama, Sandra Bullock and Rob Lowe. So not all boomers are like super old, but see, it is a big generation of over 76 million people. So whatever they do really moves the economy. And maybe you've heard it been said, My gosh, what if we have more dyers than buyers? But now a more nascent trend is that you hear about more and more boomers and people older than boomers not selling their home instead wanting to age in place. And that just means they want to stay in their home and not go to a nursing home or assisted living. And that was recently quantified in a survey that Housing Wire reported on it found that 54% of baby boomers say that they'll never sell their homes, some of them passing homes along as inheritance and see often that's because their home is paid off and assisted living care costs are through. To the roof, more than half of boomers don't have any mortgage at all. All right, so we've established that boomers aren't as old as most people think, and then a lot of them aren't planning to sell. But still, let's look for trouble here, because boomers are a huge group, and some portion of them are going to sell is they age, even if a lot of them say that they won't. How about the almost half of boomers with a mortgage? You know what? Here's the thing, if they downsized, like older people have traditionally done. I mean, my grandparents downsized long ago. But do you know what would happen if boomers downsized? Today? For most, their monthly mortgage payment would actually go up if they downsized. That's because of today's higher mortgage rates and home prices. And see, that's a financial reality that keeps them in place. They're never going to downsize. All right, so a lot of boomers are just not going to sell. But still, this wave of selling boomers crashing the housing market, this has been a popular narrative for, I don't know, maybe more than a decade. Now there's been a lot of smoke, so then where is the fire. That's another way to think about this. So there's got to be more to this. And there is, in fact, people age 55 plus, own more than half of the homes in the US. Did you know that? All right? Well, if we pull back from boomers, and let's just take a look at all homeowners of every age, people are staying in their homes longer, whether they're age 30 or 50 or 80, Americans now stay in the same home about 12 years. That is twice as long as 2005 Well, what that means is that homes don't come onto the market and people cannot buy what's not for sale. And then, of course, you've got the well documented interest rate lock in effect. That's a contributor here to people of all ages with 4% mortgages, they are reluctant to sell. And now what we're talking about here are demographics. Remember that quote, demography is destiny, the three word quote from 1800s era French philosopher Auguste Comte, and that's because it's completely predictable. If you're 32 years old today, in 10 years, you'll be 42 totally predictable. All right, if demographics could possibly crash housing crisis, let's step back and see what's going on with overall US, population growth. You know what? It just grew at its fastest rate since 2001 about a full 1% growth last year, yeah, we broke the 340 million population mark for the first time ever. And now, what about the portion that our immigrants, and what if a substantial amount of them get deported? I mean, after Trump settled into the White House for his second term, deportations began almost immediately. Is there enough population growth to buy from the boomers that do sell their homes? Well, if mortgage rates come down into the low fives, then maybe more boomers will sell and bring some more resale inventory onto the market. See, you need a good chunk, though, of buyers to come in from somewhere in order to support future housing prices. Well, where are those buyers going to be? Well, some people still don't realize that the largest generation in American history is, in fact, not baby boomers, it's millennials. They became the biggest group more than five years ago. In fact, Statista tel...
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537: How to Increase Your Real Estate ROI with a Cost Segregation
Jan 20, 202500:38:51Tap to summarizeCost segregation studies can significantly reduce taxable income by accelerating depreciation on rental properties. They reclassify certain property components, such as flooring and lighting, to shorter depreciation schedules (5, 7, or 15 years) instead of the standard 27.5 years for residential or 39 years for commercial properties. This method can result in substantial tax savings. For example, a $510,000 duplex study yielded $131,000 in accelerated depreciation, potentially saving $40,000 in taxes at a 30% rate. Although the percentage has been stepping down, it may be reinstated to 100% under the Trump administration. Initiate a cost segregation study estimate here to determine the potential tax savings. GRE Free Investment Coaching: GREmarketplace.com/Coach For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com Show Notes: GetRichEducation.com/537 Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments. You get paid first: Text FAMILY to 66866 Will you please leave a review for the show? I’d be grateful. Search “how to leave an Apple Podcasts review” For advertising inquiries, visit: GetRichEducation.com/ad Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE’ to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript: Automatically Transcribed With Otter.ai Keith Weinhold 0:01 Welcome to GRE. I'm your host. Keith Weinhold, when you reduce your taxable income, that's a zero risk return on your investment. You'll learn how to do that today with any rental real estate that you own through what's known as a cost segregation study, even those without a giant portfolio can save 10s or hundreds of 1000s of dollars. An expert guests and I break it down with real life examples, see just how it can help you today. On get rich education Speaker 1 0:34 since 2014 the powerful get rich education podcast has created more passive income for people than nearly any other show in the world. This show teaches you how to earn strong returns from passive real estate investing in the best markets without losing your time being a flipper or landlord. Show Host Keith Weinhold writes for both Forbes and Rich Dad advisors, and delivers a new show every week since 2014 there's been millions of listener downloads of 188 world nations. He has a list show, guess who? Top Selling personal finance author Robert Kiyosaki, get rich education can be heard on every podcast platform, plus it has its own dedicated Apple and Android listener phone apps build wealth on the go with the get rich education podcast. Sign up now for the get rich education podcast, or visit get rich education.com Corey Coates 1:19 You're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education. Keith Weinhold 1:35 Welcome to GRE from Berlin, Pennsylvania to Berlin, Germany and across 188 nations worldwide. I'm Keith Weinhold. You're listening to get rich education. And one way that I like to be positioned in real estate is the sense that I own it directly, yet I use a property manager so that I'm shielded from the day to day responsibility. I care, but I can still live my life now you might favor direct ownership like I do, yet choose to self manage your property instead. That's a viable way to do it. Self management is how I started out, but however you handle the management when you own directly, you can alter your effective post tax rate of return on your investment, and that's what we're talking about doing today with a cost segregation what this effectively does is increase your tax depreciation benefit. Though depreciation sounds bad as a word in the real estate world, even without spending any of your own money, it's still classified by the tax code as an expense that you can deduct from your taxable income. You don't want to reduce your income, only the taxable income reducing the portion that the IRS can get a piece of. Now, unless it's a condo, your rental property probably includes both a structure called the improvement and also the land. Now your improvement has components that wear out, and even the IRS knows that the land does not wear out yet. There are items on the land that you can get this accelerated depreciation on through a cost segregation, like fencing and lighting and carports. A lot of people don't know that, so there is therefore a land improvement segregation often on a 15 year schedule, but it's even more lucrative to get cost segregations applied to things inside your building or home that wear out faster, like countertops or flooring, as we'll see today, on shorter schedules, like five or seven years. Said another way what you're doing is that you are shielding more of your taxable income. And I'm going to ask today's Cost Segregation expert guest for an example near the start of our conversation, so he'll give us some numbers. And you want to listen to that part closely, and you might find yourself skipping back to re listen to some parts today as we give real life examples on how a cost seg works. Now, today is a Presidential Inauguration Day, so it's appropriate that we cover this today, because Trump is widely expected to reset 100% bonus depreciation, which, as you'll see, factors into our discussion today. And frequent GRE guest Tom wheelwright thinks that this is going to happen too this 100% bonus depreciation. What that means that, for example, all those land improvements that I mentioned on a 15 year depreciation schedule, where you could front load it and get it all in year one of your ownership and those components indoors. On shorter depreciation schedules, like five to seven years, you can get all those write offs in year one without waiting five to seven years. So that's. The sweetener that 100% bonus depreciation is, if Trump indeed brings that back, and you might say, wait a second, this sounds a little too good to be true. I mean, getting these amounts, you'll see they can be over 100k in tax savings, even for a small investor, that you can reduce your taxable income by Well, you know, it is just a little too good to be true, because when you sell the property down the road, you have to pay back 25% of what you wrote off this way in what's known as a depreciation recapture tax. So it's still worth doing. In a lot of cases, you would keep 75% of your benefit then, unless you do a tax deferred exchange on your sale, and then you could defer that 25% depreciation recapture tax. So yes, today's episode is deeper than most. And you know, being a Presidential Inauguration Day, and knowing that I like to drop a little levity here before we delve into deep topics, what does the outgoing presidential administration have to say about cost? Segregations get hot. Speaker 2 6:13 I got Lana. I got hairy legs that turn that turnblonde in the sun, and the kids used to come up and reach in the pool and rub my leg down so it was trained, and then watch the hair come back up again. Keith Weinhold 6:32 I don't know what just happened there. Let me just give him another chance to clear things up. I mean, you really can do a cost segregation, Speaker 2 6:41 we have this notion that somehow, if you're poor, you cannot do it. Poor kids are just as bright and just as tall as white kids. Keith Weinhold 6:51 Gosh, oh dear, I don't I don't know where to go with that. And hey, if you're a new listener, you know, over time, we poke a little fun at every president. We do with Trump as well. We do with Jerome Powell. No one is immune around here. Some people, hey, they might find it funny that a former real estate investor President like Trump wants to expand America's real estate portfolio by taking Canada and Greenland in the Panama Canal back too. Politics matter, but this is not a politically partisan platform in any way. What's politically partisan? It's saying that the economy is like absolutely awful, but then as soon as your guy gets sworn in, one hour later, you're willing to call that same economy. Now suddenly, a great economy. No, a national economy does not change in one hour. So free thinking and thinking for yourself beats polarizing political partisanship. That's a way it's been around here from day one. Yeah, a little levity, a good knee slapper now and then knee slapper coming up in future weeks on the show here, the real estate guys radio show host and a friend, Robert Helms, will be here to upda...
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536: Why the Housing Crisis is Pushing Homelessness to Catastrophic Heights
Jan 13, 202500:39:55Tap to summarizeDiscover the latest global real estate trends and untapped investment opportunities. Keith uncovers high-yield new build rental properties that can deliver impressive returns, even in today's challenging market. Don't miss your chance to build lasting wealth through strategic real estate investing. Tune in now to get the insider insights you need to get ahead. The podcast dives into dramatic global real estate trends, with home prices skyrocketing over 10% in countries like Colombia and the Netherlands. It also examines the alarming rise in U.S. homelessness, driven by factors like housing shortages and inflation. To counter these challenges, the show spotlights compelling new-build rental properties that could offer attractive returns for passive investors. GRE Free Investment Coaching: GREmarketplace.com/Coach For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com Show Notes: GetRichEducation.com/536 Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments. You get paid first: Text FAMILY to 66866 Will you please leave a review for the show? I’d be grateful. Search “how to leave an Apple Podcasts review” For advertising inquiries, visit: GetRichEducation.com/ad Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE’ to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript: Automatically Transcribed With Otter.ai Keith Weinhold 0:02 Welcome to GRE. I'm your host. Keith Weinhold, we look at global home price change, the asset class rundown, then the homelessness crisis is mega bad. It just reached new, unprecedented levels, and real estate and inflation has a lot to do with the homelessness surge today on get rich education. Speaker 1 0:28 Since 2014 the powerful get rich education podcast has created more passive income for people than nearly any other show in the world. This show teaches you how to earn strong returns from passive real estate investing in the best markets without losing your time being a flipper or landlord. Show Host Keith Weinhold writes for both Forbes and Rich Dad advisors, who delivers a new show every week since 2014 there's been millions of listener downloads of 188 world nations. He has a list show. Guess who? Top Selling personal finance author Robert Kiyosaki, get rich education can be heard on every podcast platform, plus it has its own dedicated Apple and Android listener phone apps build wealth on the go with the get rich education podcast. Sign up now for the get rich education podcast or visit get rich education.com Corey Coates 1:13 You're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education. Keith Weinhold 1:29 Welcome to GRE from Kent Washington to Tashkent, Uzbekistan and across 188 nations worldwide. I'm Keith Weinhold, and you are listening to get rich education. One reason for a not just national, but global, rise in real estate prices is that you can't fake it. Real property is not a derivative, yeah, you can't fake it. So this really emphasizes the word real in real estate. It's not a crypto within infinite supply. It's not an NFT. You can't fake construction. You can't fake real materials put into property, from concrete to kitchen cabinets. So in the year recently ended, as we catch up to global home prices and select nations, per Fitch Ratings. Let's do that because it was not just a US centric thing. In the Netherlands, the home price change last year was 13% you had that much appreciation in the Netherlands. Colombia, 10% Mexico up 9.3% Brazil had 8% home price appreciation. Australia, 5.2% Australia has just seen year over year home price appreciation for such a long time. The UK had 5% appreciation. Spain, 5% as well. The USA, 4% just like I predicted at the end of 2023 for 2024 It did indeed come in at 4% Canada also had exactly 4% home price appreciation last year, just like the USA did. Denmark 3% Italy and Japan each at two and a half percent. Germany home prices were up just one and a half percent. And France had home prices that fell 3% China had home prices that fell 7.8% that supply versus demand thing in China, where they massively overbuilt, that's why home prices are down there. And as I unveil the depths of the USS homelessness crisis later here on the show, you will see that, yeah, those appreciated real estate prices, like I just mentioned, they have a lot to do with it. Now you might think of the youngest generation, the generation after Gen Z, as generation alpha, and that is true. However, they are no longer the youngest generation, because the babies born on New Year's Day of this year not only got to be featured in feel good local news stories. You know what? They are, also the first members of generation, beta, yeah, which will include children born from 2025 through 2039 so that is the future and the future demographic that's going to demand housing. But first of all, let's look at a year that was yes for years here on the show, we have our asset class rundown shortly after most quarters end, and certainly after a year ends. And today is no different, and this is because at times you've got to compare real estate with the other investment options that are out there. We now have music to play for our asset class rundown feature each time for today and. Future shows. And I know the GRE sound engineer has got to like this. He's also a DJ dropit, Vedrand. Here is GRE 's asset class rundown for the 12 months of last year, residential real estate values were up 4% per the NARS. Single Family existing home price, like I said earlier, single family rents up about 2% per core logic, apartment rents pretty flat, down six tenths of 1% for the year per apartment list, office buildings were down in value 9% the 30 year fixed rate mortgage. It started last year at 6.6% everyone, I mean, everyone, thought that they would go lower, but nope, they ended at 6.9% a little higher. That's per Freddie Mac survey. The s5&p 100 index was up over 23% topping out at 6100 last year. That is the first time the s&p has been up 20% plus in back to back years since 1998 and the s&p is meant to represent 500 companies, but it has become so concentrated due to the rise of the Magnificent Seven stocks that its effective diversification is less than 60 stocks. Morgan Stanley just announced that they expect the SP500, 100 returns to be flat for the next decade due to lofty valuations. Do you know that since 2000 gold has outperformed the s&p last year, gold shot up from about $2,000 peaked near $2,800 and then ended up about 30% for last year, the yield on the 10 year T note was up 63 basis points last year, basically rising from four up to 4.6% by year end. What that means is that that signals higher inflation expectations. Bitcoin up an astounding 111% to end last year around 95k and it topped out at an all time high of 108k oil up just 2% to 72 bucks and a wild card for you. Through October, Bible sales were up 22% compared to the same period versus the previous year. That is GRE 's asset class rundown. It was. This is get rich education. Let's drop back and do some learning before I update you on housing and the homelessness crisis. Now, a lot of Americans don't really know history that well, and not very many have a good financial education either. But you know, it is quite possible that even the next person you spot in a Trader Joe's aisle has heard of Adam Smith in his landmark 1776 book The Wealth of Nations. Did you know that Adam Smith is the one credited with actually inventing the very concept of supply and demand? Yeah, Adam Smith, a Scotsman is credited with that. He is known as the father of modern economics. You might have already known that. Well, of course, supply versus demand seems to be a more relevant concept than usual. Here with the housing shortage crisis, Adam Smith, he proposed the idea of what he called an invisible hand, that is the tendency of free markets to regulate themselves using competition, supply and demand and self interest, a Darwinian sort of struggle. Really, did you know that he also created the concept of gross domestic product? Yeah, prior to Adam Smith's work, most people considered a nation's wealth based on the amount of gold and silver reserves that they had stored. But Adam Smith said no, it's more about productivity quantified in this GDP in a lot of his work. It also discusses the evolution of human society from a hunter stage with no property rights and no fixed residences, to nomadic agriculture with shifting residences. And then the next stage after that is a feudal society, where laws and pr...
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535: Single-Family Rentals vs. Apartment Buildings
Jan 6, 202500:41:27Tap to summarizeKeith discusses the pros and cons of investing in single-family rentals versus apartment buildings. He highlights that less than 10% of U.S. building materials are imported, reducing the impact of tariffs. Single-family rentals offer better tenant quality, lower vacancy rates, and higher appreciation potential. They also have lower financing costs and are more divisible. Conversely, apartment buildings offer economies of scale and lower per-unit maintenance costs. He emphasizes the importance of owning more property, especially new-builds, which offer lower insurance premiums and attractive financing options Work with expert investment coaches to find the best off-market deals and maximize your returns. GRE Free Investment Coaching: GREmarketplace.com/Coach For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com Show Notes: GetRichEducation.com/535 Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments. You get paid first: Text FAMILY to 66866 Will you please leave a review for the show? I’d be grateful. Search “how to leave an Apple Podcasts review” For advertising inquiries, visit: GetRichEducation.com/ad Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE’ to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript: Automatically Transcribed With Otter.ai Keith Weinhold 0:01 welcome to GRE. I'm your host. Keith Weinhold, talking about how most home building materials are US sourced and not affected by tariffs, the little understood pros and cons of investing in apartment buildings versus single family rental homes, then what really makes sense to invest in in this particular era and more today on Get Rich Education. Speaker 1 0:28 since 2014 the powerful get rich education podcast has created more passive income for people than nearly any other show in the world. This show teaches you how to earn strong returns from passive real estate investing in the best markets without losing your time being a flipper or landlord. Show Host Keith Weinhold writes for both Forbes and Rich Dad advisors and delivers a new show every week since 2014 there's been millions of listener downloads of 188 world nations. He has a list show, guess who? Top Selling personal finance author Robert Kiyosaki, get rich education can be heard on every podcast platform, plus it has its own dedicated Apple and Android listener phone apps build wealth on the go with the get rich education podcast. Sign up now for the get rich education podcast or visit get rich education.com Corey Coates 1:13 You're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education. Keith Weinhold 1:29 Welcome GRE from Tallahassee, Florida to Waxahachie, Texas and across 188 nations worldwide. I'm Keith Weinhold, and you are inside, G, R, E, we are here for you every Monday, without fail, 52 weeks a year, and we have never replayed an old episode either, always original content. Thanks for being here, but you're not here for me. You are here for you as another year dawns before we get into the meaty real estate content of today's show, including single family rentals versus apartments. Take a moment to check in with your own goals. Maybe you think about that is just buying your first investment property, or maybe you own 83 rental units, and you're looking to get to 100 this year. But no matter really real estate is just the fuel for your goal. It's probably not the end goal itself is your goal to have the time freedom to watch all of your kids basketball games this year. What about beyond this year? Are you really dreaming big enough you've got to question yourself on that sometimes, for example, forget flying first class. What if you want to own your own private jet, like Taylor Swift's luxurious Dassault 7x jet for $54 million? how about real estate fueling a dream that's even bigger than that? Yet, last month, the Philadelphia Eagles received the NFL approval for the sale of an 8% interest of the team to two different family investors. Okay, do you find say that interesting owning part of a major pro sports team. And by the way, what would something like that look like for you? I mean, do you even have the headspace to conceive of such a thing? It's good to ask yourself questions like this. Sometimes that sale was based on a valuation of the team of up to $8.3 billion and yet, after all that, the Eagles owner Jeffrey Lurie, he still maintains complete control of the team. Okay, so if each of the two family investors got a 4% interest at this valuation, that is up to a $332 million investment for each family. Maybe that could be a Weinhold the family goal. We'll see about that one. And you know, when it comes to making yourself a bigger you and dreaming a bigger dream, I like to listen to what the doers say. I found it so interesting in a Jeff Bezos interview at the deal book Summit, Bezos said it's human nature to overestimate risk and underestimate opportunity. Bezos also said entrepreneurs would be well advised to try and bias against that piece of human nature, the risks are probably not as big as you perceive, and the opportunities may be bigger than you perceive. That's the end of what bezel said. I really think that that's spot on stuff. now two weeks ago, when I gave GREs national home price appreciation forecast for this year. You might remember that I said that potential Trump tariffs just don't matter as much as people think when it comes to real estate. And understanding more about why I say this, it can help you understand real estate materials and sourcing and home building in the United States, America's overwhelming majority of sourced building materials are not imported, so therefore something like a supply chain bottleneck that's more worth watching, really. It's a huge misunderstanding of the home building market to assume that most building materials come from overseas. They do not, not even 10% of residential construction building materials are imported. The National Association of Home Builders will tell you so. And really, the majority of those few imports that do come from elsewhere, they come from, Canada in the form of timber. You might have heard about that before. Now, there are some things like finishes and fixtures that get sourced from, oh, various other countries, but yeah, the biggest potential tariff expense impacting home builders would come from enacting a cost on Canadian lumber. But I and a lot of economists as well, they're pretty skeptical that the administration would really enact a tariff on a close ally like that, on Canada's raw materials. In fact, Chief Economist Lawrence Yoon of the NAR he conceded that even potential lumber tariffs, they might be given a phasing in period, and that would encourage American timber mills to fill in any production gap. It's also important to you know, remember that doors, windows, cabinets that builders utilize, they are typically produced within us, borders. Windows, doors, cabinets made domestically, unless it's something that relies on raw materials that are imported, they ought to be little affected by tariffs. One example is that kitchen sinks now they largely went from being sourced in China, then Malaysia, then Indonesia, and one main customer is now talking about sourcing them out of Mexico or the Dominican Republic. So there are a few things that less than 10% that's imported. Another imported item is flooring, which moved away from China, went to India for a while, went a little bit back to Brazil, and now more is being sourced by Ecuador. But the important thing to remember is that these are outlier components. Not even 10% of residential construction building materials are imported. That's what you want to remember, concrete, us, rebar, us. So you know, as a real estate investor, you can feel good that as your portfolio grows, each one of your properties was chiefly built with us, labor that you already knew, but it is also built predominantly with us, materials as well. How likely are single family rental investors to say that they want to buy more investment property this year. Well, year ago, 60% of them said that. Today it is up to 76% yes, that many say that they are either likely or very likely to buy single family rental property in the next 12 months, and that same group that was surveyed is also unlikely to sell their property, and they also said that they are more likely to raise the single family rent this year. And all this is according to a joint lending one resi club survey. However, most fall in the range of raising the rent be...
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534: Rising Prices Lead to Social Decay with Doug Casey
Dec 30, 202400:40:52Tap to summarizeDiscover how inflation is destroying the value of your money and eroding the ethical foundations of society. Legendary author Doug Casey reveals the insidious ways rising prices lead to social decay, unethical behavior, and the breakdown of trust. Learn how to protect your prosperity by shifting away from the falling dollar and into real assets like gold, real estate, and carefully selected investments. Don't let inflation rob you - get the insights you need to thrive in this challenging economic environment. Will you please leave a review for the show? I’d be grateful. Search “how to leave an Apple Podcasts review”. Resources: Visit internationalman.com to read Doug Casey's weekly articles and watch his "Doug Casey's Take" videos on YouTube. Show Notes: GetRichEducation.com/534 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com GRE Free Investment Coaching:GREmarketplace.com/Coach Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments. You get paid first: Text FAMILY to 66866 For advertising inquiries, visit: GetRichEducation.com/ad Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE’ to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript: Automatically Transcribed With Otter.ai Keith Weinhold 0:01 Welcome to GRE. I'm your host. Keith Weinhold, inflation does not mean rising prices. Inflation is an expansion of the money supply which results in rising prices, and it leads to wider societal decay and moral breakdowns in ways that you've never thought about before. It misdirects inflation frustration toward people like housing providers and grocers, we explore it today on get rich education. Mid south home buyers, I mean, they're total pros, with over two decades is the nation's highest rated turnkey provider. Their empathetic property managers use your ROI as their North Star. So it's no wonder that smart investors just keep lining up to get their completely renovated income properties like it's the newest iPhone. They're headquartered in Memphis and have globally attractive cash flows and A plus rating with a better business bureau and now over 5000 houses renovated. There's zero markup on maintenance. Let that sink in, and they average a 98.9% occupancy rate, while their average renter stays more than three and a half years. Every home they offer has brand new components, a bumper to bumper, one year warranty, new 30 year roofs. And wait for it, a high quality renter. Remember that part and in an astounding price range, 100 to 180k. I've personally toured their office and their properties in person in Memphis, get to know Mid South. Enjoy cash flow from day one. Start yourself right now at mid south homebuyers.com that's mid south homebuyers.com you know, whenever you want the best written real estate and finance info. Oh, geez. Today's experience limits your free articles access, and it's got paywalls and pop ups and push notifications and cookies disclaimers. It's not so great. So then it's vital to place nice, clean, free content into your hands that adds no hype value to your life. That's why this is the golden age of quality newsletters, and I write every word of ours myself. It's got a dash of humor, and it's to the point because even the word abbreviation is too long, my letter usually takes less than three minutes to read, and when you start the letter, you also get my one hour fast real estate video. Course, it's all completely free. It's called the Don't quit your Daydream letter. It wires your mind for wealth, and it couldn't be easier for you to get it right now. Just text GRE to 66866, while it's on your mind, take a moment to do it right now. Text GRE to 66 866. Speaker 1 3:12 you're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education. Keith Weinhold 3:28 We are the GRE from Albany, New York to New Albany, Ohio, and across 188 nations worldwide. I'm your host, Keith Weinhold, and this is get rich education. You have probably heard it been said by now that money must have three attributes. It is a store of value, a medium of exchange and a unit of account. The US Dollar does not meet the first one store of value. That's due to inflation. How is the dollar a store of value, it is not so then the dollar is a mere currency, not money. You can make the case that gold is a store of value, maybe that Bitcoin is, although it's got a short track record and it's a volatile ride the S, p5, 100, you could say that's nothing more than a store of value long term. When you understand all the drags on it, you're only treading water long term with the s, p, I've discussed that on shows earlier this year. That leaves real estate as not just a good long term, stable store a value, but when it's done right, it is the vehicle where inflation actually increases your purchasing power. And here's a new way to think about it, money is your time and energy captured in an abstracted form for the government to take out debt. They are borrowing your time and energy. Government debt is the closest thing we've ever seen to time travel.They're borrowing the collective time and energy from your future. How do you achieve time travel? You borrow human time and energy from the future currency debasement steals the time and energy of you and everyone alive today. That's why you've got to protect yourself. And what this does is that it actually increases your time preference. Yeah, the term time preference, that's something that Bitcoin authors like Dr saifedean Amos often use time preference and actually think that it's sort of a confusing term. Time preference, though, it sounds like a good thing, it's actually a bad thing. It means that you would rather consume now and over consume now instead of later. Having a high time preference means that you want to all out, ball out right now, and not consider your future. Well, that's what inflation does whenever you see the term time preference out there. I think the best way for you to remember what that means is think of it instead as a now preference. I think now preference is more intuitive than time preference. Teach me how to Dougie, yes, we've got public figure and mega popular author Doug Casey back with us today to discuss how rising prices lead to social decay and makes humans have a higher time preference resultantly, I guess that is teaching us how to Dougie. Yes, indeed, that is a reference to that, like 15 year old song, teach me how to Dougie, and we would drop some bars of that song right now. Oh, you know that me and the team here, we really want to, but we would probably have some royalty issues with that one here, and I'll tell you that is such a stupid song. Teach me how to Dougie, but at the same time, once you've heard it, the next thing that you want to do is hear it again somehow. But it's pretty likely that Doug Casey and I have some more important things to talk about. So fortunately for you, rather than discuss a 2010, rap song any further, we're going to discuss how rising prices lead to social decay. Monetary inflation is even worse than you think. This era's rising prices and falling values actually lead to social decay. Villains and unethical actors are getting rewarded and they're stealing from you. We're going to discuss just how the international man himself, a legendary and generationally popular author, is back with us for a sobering look at inflation and social decay today. Hey, welcome back in. Doug Casey. Doug Casey 8:04 Nice to talk to you, Keith. I'm speaking to you at the moment from my farm in Uruguay, which is one of the, I would say, two, most stable countries in Latin America, and one of the two or three most stable countries in the Western Hemisphere, there's a lot of real estate in the world, other than in the US. And I know that you mostly talk about real estate. I've actually done a lot of real estate too, all around the world, in the Orient and in Europe and South America, and, of course, a lot in the US and Canada. So I'm generally friendly to real estate, and it's been very, very good to me. Keith Weinhold 8:44 Well, you're truly living up to the International Man moniker again today, joining us from that small South American nation of Uruguay and Doug. Before we talk about the inflation and the social decay, what are property taxes like there in that part of Uruguay. And I know yo...
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533: GRE's 2025 Home Price Appreciation Forecast
Dec 23, 202400:44:24Tap to summarizeKeith unveils our 2025 National Home Price Appreciation Forecast. Learn the factors driving the housing market and discover why Keith's predictions have been spot-on for the past 3 years. Gain the insights you need to make strategic real estate moves in the year ahead. Don't miss this must-listen episode packed with actionable real estate insights. The Fannie Mae home purchase sentiment index rose, indicating growing consumer confidence. Trump's immigration and tariffs policies and their potential impact on housing demand and labor market disruption. Hear about the impact of the under supply of housing in the US and the potential impact on home prices. Will you please leave a review for the show? I’d be grateful. Search “how to leave an Apple Podcasts review” or for Spotify. Show Notes: GetRichEducation.com/533 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com GRE Free Investment Coaching:GREmarketplace.com/Coach Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments. You get paid first: Text FAMILY to 66866 For advertising inquiries, visit: GetRichEducation.com/ad Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE’ to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript: Automatically Transcribed With Otter.ai Keith Weinhold 0:00 Welcome to GRE I'm your host. Keith Weinhold, today is the day that I'm giving you our 2025 national home price appreciation forecast. You'll get the exact percent that I expect home prices to rise for Fall next year. Learn the factors that really move prices. Importantly, I follow up and you get the results of previous years forecasts too. Will it be a holly jolly forecast or more Grinch like today on Get Rich Education. Mid-south home buyers. I mean, they're total pros, with over two decades as the nation's highest rated turnkey provider, their empathetic property managers use your ROI as their North Star. So it's no wonder that smart investors just keep lining up to get their completely renovated income properties like it's the newest iPhone. They're headquartered in Memphis and have globally attractive. Cash Flows, an A plus rating with a better business bureau and now over 5000 houses renovated. There's zero markup on maintenance. Let that sink in, and they average a 98.9% occupancy rate, while their average renter stays more than three and a half years. Every home they offer has brand new components, a bumper to bumper, one year warranty, new 30 year roofs. And wait for it, a high quality renter. Remember that part and in an astounding price range, 100 to 180k I've personally toured their office and their properties in person in Memphis, get to know Mid South. Enjoy cash flow from day one. Start yourself right now at mid southhomebuyers.com that's mid south homebuyers.com you know, whenever you want the best written real estate and finance info. Oh, geez. Today's experience limits your free articles access, and it's got paywalls and pop ups and push notifications and cookies disclaimers. It's not so great. So then it's vital to place nice, clean, free content into your hands that adds no hype value to your life. That's why this is the golden age of quality newsletters, and I write every word of ours myself. It's got a dash of humor, and it's to the point because even the word abbreviation is too long, my letter usually takes less than three minutes to read, and when you start the letter, you also get my one hour fast real estate video. Course, it's all completely free. It's called the Don't quit your Daydream letter. It wires your mind for wealth, and it couldn't be easier for you to get it right now just text GRE to 66866, while it's on your mind, take a moment to do it right now. Text GRE to 66866. Corey Coates 3:12 you're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education. Keith Weinhold 3:28 Welcome to GRE from North port, Florida to North Pole, Alaska and across 188 nations worldwide. I'm Keith Weinhold, and you are listening to get rich education episode 533 Yes, your favorite slack jawed real estate podcaster here is indeed the GRE founder. I'm also an active Forbes real estate council member, best selling author. I write our weekly Don't quit your Daydream newsletter. And perhaps most importantly, I am an active real estate investor, I am here to help you invest well in real estate, and that is because most Americans have enough saved for an absolutely incredible single day of retirement. Look the content that you choose to listen to will shape your behavior, it'll even gradually alter your identity over time and forge your dreams. Middle class financial advice will keep you squarely in the middle class. They get robbed of the fruits of their labor through taxes. Get robbed of their purchasing power through inflation, and they get robbed of their financial future by staying financially illiterate. I mean, if you're grinding hard and sacrificing experiences to be debt free at 36 well then that means you aren't using other people's money. You, it confirms that you've got no leverage. Why celebrate that? Celebrate financial freedom or a great vacation, or, you know, anything else, like with your friends and family to the Canary Islands. I mean, that's stuff that's worth celebrating, that's extraordinary in this one and only life that you got. I love the old African proverb, if you want to go fast, go alone. If you want to go far, go together. You and I are on this journey together. Dream of living the life where you just give a light touch to some of your investments while they are building your wealth, just adjust the sales of your ship a little here and there. Now. We'll get into the big picture real estate forces in my exact percent home price appreciation figure shortly. But doesn't that sound amazing where you can just do this? I mean, that's what I do. I just give a light touch to my investments. For example, at the beginning of this month, I looked at the statements as they came in in emails from my property managers in various real estate markets, like I usually do now when you have a perfect month as a real estate investor, US landlords, or should I say, housing providers, acknowledging last week's show we develop our own vernacular. A perfect month is when you have 100% rental occupancy and no repair items. Once though you have more than about five rental units, it's hard to ever have a perfect month. It's always good to budget something toward long term vacancy and maintenance. But I had a pretty good month last month. For some reason, my properties needed a few new appliances, a replaced fridge. Here, a new microwave. There, a lot of appliances like a fridge, you know, they can still look pretty close to new, even if they're used. That's fine for a rental. This was just a $280 fridge replacement, for example, in this one rental, single family home of mine. So yeah, just that monthly scan of your property manager statement, seeing that income and expenses look kind of reasonable to you, and then going about your day and the rest of your month. Now, it wasn't always that way for me. As I started and grew, I self managed my own properties for the first six or seven years, and sometimes, you know, something will happen where I want to get more proactive and maybe take, say, a 90 minute block of time to shop for lower insurance premiums if I see those rates rising in a certain market or something like that, but that's how it feels to give a light touch to your active direct real estate investments. Keep that going, because this is all happening while you keep other people's money working for you, the banks, the governments and the tenants. Hey, something that's become newsworthy, an index measuring consumer confidence in the housing market, rose again last month, and that is the latest sign that potential property buyers and sellers are growing more accustomed to today's mortgage rates and prices. The Fannie Mae home purchase sentiment index that has now increased to 75 points. So the index has risen 11 points or more than 16% in the last year. So there is, however, not one shred of evidence, for example, that sub 3% mortgage rates are coming back anytime soon, maybe not even in this decade or in your entire lifetime. Who really knows? I mean, it's soon going to be three years since the Fed began their aggressive rate hiking cycle and the market and consumer expectations are finally adjusting and settling down, and that right there that factors in just the touch to the housing forecast that I'm going to deliver to y...
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532: Inflation is Your Wealth-Building Friend (Really)
Dec 16, 202400:43:48Tap to summarizeAre you a real estate investor looking to maximize your returns and minimize hassles with your rental properties? This is a must-listen! You'll discover proven strategies for quickly filling vacant units and attracting high-quality, long-term tenants. Hear Keith share insider tips on leveraging rent increases to boost your cash flow and property values. Plus, you'll learn about an innovative financial tool - a Home Equity Investment - that can unlock a lump sum of cash from your properties without any monthly payments. Tune in to get the edge on managing your rentals like a true pro and building lasting wealth through real estate. This episode is packed with actionable insights you can apply to take your investing business to the next level. Will you please leave a review for the show? I’d be grateful. Search “how to leave an Apple Podcasts review”. Show Notes: GetRichEducation.com/532 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com GRE Free Investment Coaching:GREmarketplace.com/Coach Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments. You get paid first: Text FAMILY to 66866 For advertising inquiries, visit: GetRichEducation.com/ad Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE’ to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript: Automatically Transcribed With Otter.ai Keith Weinhold 0:01 Welcome to GRE. I'm your host. Keith Weinhold, talking about the dynamic between rents and prices, how to keep your vacancy rate low and the relationship between landlords and tenants. Learn about how a newer vehicle can give you a big lump of cash from your property without you having to make any payments, then inflation is your wealth building, Friend, yeah? really today on get rich education. Mid south home buyers, I mean, they're total pros, with over two decades as the nation's highest rated turnkey provider, their empathetic property managers use your ROI as their North Star. So it's no wonder that smart investors just keep lining up to get their completely renovated income properties like it's the newest iPhone. They're headquartered in Memphis and have globally attractive cash flows and A plus rating with a better business bureau, and now over 5000 houses renovated. There's zero markup on maintenance. Let that sink in, and they average a 98.9% occupancy rate, while their average renter stays more than three and a half years. Every home they offer has brand new components, a bumper to bumper, one year warranty, new 30 year roofs. And wait for it, a high quality renter. Remember that part and in an astounding price range, 100 to 180k I've personally toured their office and their properties in person in Memphis, get to know Mid South. Enjoy cash flow from day one. Start yourself right now at mid southhomebuyers.com that's mid south homebuyers.com when you want the best real estate and finance info, the modern Internet experience limits your free articles access, and it's replete with paywalls and you get pop ups and push notifications and cookies disclaimers, ugh. At no other time in history has it been more vital to place nice, clean, free content in your hands that actually adds no hype value to your life. That's why this is the golden age of quality newsletters. And I write ours myself. It's got a dash of humor, and it is to the point to get it. It couldn't be more simple. Just type up a text message with the letters G, R, E in the body and send it to the phone number, 66866, and when you start the free newsletter, you'll also get my one hour fast real estate course, completely free. Subscribe to my Don't quit your Daydream newsletter, and your mind will be wired for wealth. Text GRE to 66866, text GRE to 66866, Corey Coates 3:02 you're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education. Keith Weinhold 3:18 Welcome to GRE from Villa Lenovo, Pennsylvania to Villanueva, Columbia, and across 488 nations worldwide. I'm Keith Weinhold in your listening to get rich education. I'm really grateful to have you as always. When you invest, you are buying a day that you don't have to work. That's what we're helping you do here every single week own real estate, and it's going to allow you to buy back big chunks of time for yourself later. And that's a big deal because your very life is made up of chapters of time. It's actually really cool when you own investment properties in a few different places, then you actually own part of, say, Indiana and Tennessee and Georgia. You own parts of those states. That's what we help you do here. And that sounds cool. Sounding cool, though, is not enough. There need to be good fundamental reasons behind the real estate portfolio that you are building. It's kind of interesting. With rental property investing, you're kind of doing the little things in order to hold together the big profitable picture, because there are all these forces that are simultaneously creating wealth for you when you've got income property with a loan. So yeah, you're just sort of trying to hold it together. You say, don't get your vacant property rented as soon as you want. So you might drop the rent 50 bucks and add a nice new kitchen faucet and ta da, just like that. It's rented, and all while you're doing those little things. Things to hold it together. Whether your property is vacant or rented, you are benefiting from leverage and inflation. Profiting on your loan. You're benefiting from some big forces either way. Well, on today's show, first, we're going to be talking about the little things like the one on one relationship between you and your tenant, and then later on the show today, that's when we'll grow and talk about a more macro force, like new ways for you to think about how you're benefiting from inflation when we talk about rents prices and the relationship between a real estate investor like you and your tenant. Recently, on the show here, I talked about how the 4.6% growth in wages like we do have today, that is a harbinger of you getting future rent growth. And this can get rent growth to catch up with the growth that we've had in property prices. And note that this is what happens. You need to remember that the bid format of buying property that allows for more rapid price escalation than the first come first serve at a set price format that you have when you're trying to rent out your property. All right, when you put up a property for sale, or you're the person that's buying one, that's usually not in a first come first serve process that's more of a competitive bid process. And see that is exactly why, in a hot market, real estate prices can run up fast. But because, say, you're renting out a property, and you're doing that, you're usually not accepting offers from prospective tenants and then taking the tenant that has the highest bid. Well, instead with rents, you're just taking the qualified first tenant that agrees to your fixed rent price of, say, $2,000 Okay, your prospective tenant isn't saying, Oh, I really like your rental, single family home, so I'll pay you $2,200 for instead of the 2000 that you're asking. And see that right there is why, in a hot market, property prices run up faster than rents do. But see when prices run up faster than rents, like they did, starting about four years ago, what happens is that begins to make rents, oh, they look like a relative bargain to people that are seeking housing. So that is the time that pivot point when rents catch up with prices, which is the cycle that I hope we are getting into next. Now. Right now, we have to be at a time of year where tenants tend to stay put. There isn't as much turnover as you approach the holidays, but a few months from now, turnover tends to pick up in the springtime. And before we talk about the economics of what you do when you have a vacant unit, understand that despite the national housing shortage, the rental vacancy rate really is not that low nationwide. Do you have any idea what the historically average rental vacancy rate is? You have any guess there? That's about 7% 7.3% to be exact. That's why, when you run your cash flow analysis for a property using one month per year is usually pretty safe, that's about 8% Well, all right, we've established that the long term national rate of vacancy is 7.3% the current vacancy rate is 6.9% and yes, that number is just what it sounds like. It's simply the percentage of rental inventory that's available for rent, and it maxed out at 11% back in 2009 that's when housing was badly overbuilt, and now with the hous...
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531: How to Replace Your Job with Rent Income in Just 3 Years
Dec 9, 202400:46:40Tap to summarizeFrom railroad conductor to becoming a successful real estate investor and replacing his day job in just 3 years. On today’s episode, Keith chats with one of our very own GRE listeners, Grant Francke, about what he did to build his portfolio to quit his steady union job. Hear about the importance of having a clear "why" for investing and setting specific goals. We discuss the concept of inflation profiting on debt and how it contributes to wealth building Leveraging cash-out refinances and 1031 exchanges as a strategy to scale up and diversify. Resources: Check out Grant Francke’s book “The Unlikely Investor” here. Show Notes: GetRichEducation.com/531 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com GRE Free Investment Coaching:GREmarketplace.com/Coach Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments. You get paid first: Text FAMILY to 66866 For advertising inquiries, visit: GetRichEducation.com/ad Will you please leave a review for the show? I’d be grateful. Search “how to leave an Apple Podcasts review” Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE’ to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript: Automatically Transcribed With Otter.ai Keith Weinhold 0:01 welcome to GRE. I'm your host. Keith Weinhold, it's a highly relatable show today because you're going to meet a fellow GRE listener and real estate investor like you that use the principles of this show to build wealth, and he reached real estate financial freedom even faster than I did today on get rich education. Mid south home buyers, I mean, they're total pros, with over two decades as the nation's highest rated turnkey provider, their empathetic property managers use your ROI as their North Star. So it's no wonder that smart investors just keep lining up to get their completely renovated income properties like it's the newest iPhone. They're headquartered in Memphis and have globally attractive cash flows, an A plus rating with a better business bureau and now over 5000 houses renovated. There's zero markup on maintenance. Let that sink in, and they average a 98.9% occupancy rate, while their average renter stays more than three and a half years. Every home they offer has brand new components, a bumper to bumper, one year warranty, new 30 year roofs, and wait for it, a high quality renter. Remember that part and in an astounding price range, 100 to 180k I've personally toured their office and their properties in person in Memphis, get to know Mid South. Enjoy cash flow from day one, start yourself right now at mid south homebuyers.com that's mid south homebuyers.com Keith Weinhold when you want the best real estate and finance info, the modern Internet experience limits your free articles access, and it's a replete with paywalls, and you get pop ups and push notifications and cookies disclaimers, ugh. And no other time in history has it been more vital to place nice, clean, free content in your hands that actually adds no hype value to your life. That's why this is the golden age of quality newsletters, and I write ours myself. It's got a dash of humor, and it is to the point to get it. It couldn't be more simple. Just type up a text message with the letters G, R, E in the body and send it to the phone number, 66866, and when you start the free newsletter, you'll also get my one hour fast real estate course, completely free. Subscribe to my Don't quit your Daydream newsletter, and your mind will be wired for wealth. Text GRE to 66866, text GRE to 66866. Corey Coates 2:57 you're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education. Keith Weinhold 3:13 Welcome to GRE from Washington Crossing Pennsylvania to cross City Florida and across one area, nations worldwide, you're listening to one of America's longest running and most listened to real estate shows. I'm Keith Weinhold, and you're listening to get rich education here for you every single Monday, every week, without fail. This is the voice of real estate investing Since 2014 you know, being successful in real estate such that you can quit your job when you're young enough to enjoy it is counter cultural, even kind of Bohemian. I mean, just imagine telling yourself this or saying this to somebody else. First, I had a lot of debt, then my situation got even better, because we had a surge of high inflation, and it's all making me rich. To that, most conventional financial wisdom would reply like, Dude, are you nuts? Maybe. But I'll tell you what, I'm not normal. I wouldn't want to be normal. That's a real pejorative, right there. Normalcy is, like, slanderous. Yep, you gotta get iconoclastic. Well, it's all grounded in fundamentals. Yep, inflation dilutes your debt for you, and it's almost perfectly predictable that that's gonna happen too by following principles just like that aligned with GRE 's inflation triple crown, and that real estate pays five ways. The guest that you'll meet today, yeah, he did reach financial freedom faster than I did. You're gonna hear about how he did it. It's like I've said on the show here before. I am divulging to you the information that I wish I had when I started out, because if I had this when I began, I would have reached financial freedom sooner. You know, after I bought my first ever income property, that fourplex, I didn't buy my next investment property for almost five years. Okay, it was not a fast timeline for me, but after about four years from buying that seminal first property, I started analyzing what it was doing for me, and I well, not only wanted to buy more, but I would soon learn that really the lessons I extracted from that property, I ended up articulating that in ways that no one else that I know of has. Today's listener guest is from a Midwestern MSA of 343,000 people that we haven't discussed on the show before, at least in any detail. And that's also the market that he invests in. Let's meet him. Keith Weinhold 6:05 From time to time, we like to have a GRE listener on the show to learn about how the show has changed their life, and also discover you know just what you're out there doing as a real estate investor. And this is because other listeners can find these episodes so relatable. Today's listener guest is from Nebraska, and he listened to GRE in the commute to and from his job for years back when he still had one, because he's a success story. Since he has replaced his day job income with rental properties in just three years, which is a remarkably fast timeline, and now he's got more time freedom for his passions or for his family and kids. So we're gonna learn about how he did that. Hey, welcome to the show. GRE listener GrantFrancke, Thanks, Keith. Honored to be here. Frankie is spelled F, R, a, n, C, K, E, and Grant, this is great that you've been on this fast timeline to produce financial freedom. But before we talk about that, let's back up. Tell us about your beginning like your family situation in your now, I guess former job. Grant Francke 7:09 great question. So I started it out as a conductor for BNSF Railways. So I was a trained conductor. I started out there pretty much right out of high school. It's a great job if you don't have any family or kids because you're gone all the time you work crazy hours. Yeah. So it was great before I was married, but then I got married, I was like, I don't really love this as much. And then once we had our two kids, I was like, I've got to find something else that can get me that time, freedom to spend more time with them. And stumbled on real estate and started going that route. Keith Weinhold 7:40 Some people don't have that mindset. They justify working overtime because, well, I'm away from my kids, but I'm working for them, but with financial freedom, you really can have both a time for your children when you want it and the income that you desire a railroad conductor. So I believe that's different from a railroad engineer, right? The railroad engineer is the person that kind of drives the train and changes the speed in the conductor. They're the one that's sort of making sure that the staff and the cargo and the passengers are taken care of. Is that what a railroad conductor does? Grant Francke 8:12 Yep. So we only did cargo freight, so I was in charge of, like, how fast we could go, what was all in the train,...
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530: Why We Hate Jeff Bezos
Dec 2, 202400:38:34Tap to summarizeKeith discusses the paradox of falling home prices and rents in Austin, Texas, despite it being the fastest-growing city. He highlights the over-supply of apartments, with new towers next to old bungalows, and notes that apartment rents are down, while single-family home rents are up. He also explores societal attitudes towards wealth, noting the double standard of admiring celebrities while vilifying entrepreneurs like Jeff Bezos. The over-supply of apartments has slowed down rent growth, affecting single-family home rents. Wage growth has outpaced inflation, potentially boosting rents. Millennials are increasingly renting due to the inability to afford homes. Show Notes: GetRichEducation.com/530 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com GRE Free Investment Coaching:GREmarketplace.com/Coach Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments. You get paid first: Text FAMILY to 66866 For advertising inquiries, visit: GetRichEducation.com/ad Will you please leave a review for the show? I’d be grateful. Search “how to leave an Apple Podcasts review” Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE’ to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript: Automatically Transcribed With Otter.ai Keith Weinhold 0:01 Welcome to GRE I'm your host. Keith Weinhold, I just walked one of America's most interesting real estate streets. I'll tell you what I saw then what it takes to get rents to increase in the US more real estate investing content, then it's about jealousy and envy. Why we hate Amazon founder Jeff Bezos for his wealth, yet love performers like LeBron James and Taylor Swift for theirs. It's a case study on wealth, entrepreneurship and celebrity today on get rich education. Speaker 1 0:39 Since 2014 the powerful get rich education podcast has created more passive income for people than nearly any other show in the world. This show teaches you how to earn strong returns from passive real estate investing in the best markets without losing your time being a flipper or landlord. Show Host Keith Weinhold writes for both Forbes and Rich Dad advisors, and delivers a new show every week since 2014 there's been millions of listener downloads of 188 world nations. He has a list show guests include top selling personal finance author Robert Kiyosaki. Get rich education can be heard on every podcast platform, plus it has its own dedicated Apple and Android listener phone apps build wealth on the go with the get rich education podcast. Sign up now for the get rich education podcast or visit getricheducation.com. Corey Coates 1:25 You're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education. Keith Weinhold 1:41 Welcome to GRE from sinking spring Pennsylvania to Manitou Springs, Colorado and across 488 nations worldwide. I'm Keith Weinhold, and you are inside episode 530 of the GRE podcast. What's the minimum wage? I don't even know. Around here, we don't talk about how to live below your means, but grow your means, and you're gonna learn how to earn maximum wage. Austin, Texas is the fastest growing city in America. I've got some really interesting real estate observations for you, since I walked it two weeks ago and well, touring the Texas State Capitol Building was cool. And then on Austin's Sixth Street, I hadn't seen that much beer pong since college, but you know, rainy street, R A, I N, E Y, just south of the downtown, near the river, that was Austin's interesting Real Estate Street, the fastest growing city in the United States has falling home prices and falling rents. What a paradox that is in the fastest growing city. I mean, how do you balance that weirdness? Yes, the census tells us that Austin is the fastest growing and even as a gentrified hipster Haven with murals on the walls, street corners, there food trucks, coffee shops. You know the coffee shops that make you feel like you're in an indie film. It doesn't matter. They simply built too much there in Austin. So all of that that cannot compete with classic supply versus demand dynamics, old fashioned Milton Friedman stuff. And really, what I saw in both San Antonio and Austin is emblematic of the new apartment supply surge. What's going on on rainy street? I mean, that's what I call America's apartment over supply ground zero. Cranes are in the air all over the place. They're building 500 foot apartment towers right across the street from one story bungalows there on Rainey Street. It's a weird scene. Well, the apartments, they're going to be vacant for a while, and part of the weird scene is that there are outdoor live country music acts on the east side of rainy street, and they're playing out of these old one story bungalows converted to bars. It just feels like they're going to be raised and knocked over anytime and then country music, that's something that you associate with, like cows grazing within a mile of you. But that is not going on here, so these huge, new, shiny glass and steel apartment towers are right across the street from it. So it's this weird cultural mix of both country flare and urbanism in Austin and now there were also some clubs with DJs playing. There something more modern. I mean, like 20 year old R and B songs that everyone knows the words to by artists like Usher and Akon. Remember. Or a con or Ja Rule. Remember Ja Rule? Maybe they were playing Jay Z and ice cube too. But, you know, maybe shabu Z would have made more sense on that scene. In any case, it is an unusual scenario there in Austin. So a lively place, a growing place, but apartment buildings got out ahead of the growth. And yes, it all comes back to supply versus demand. Yep, that age old rivalry between what we've got and what we want now broadly, America has an overall lack of housing supply and the under building that is the most prevalent in northern states. And of course, under building, what that does is it increases the number of buyer bids on the few available properties. Well, in turn, that pushes up their home prices faster than the rest of the nation. Now the states with the most appreciation, they generally have the least new housing inventory being built. And of course, conversely, states with the highest available housing supply have the slowest home price appreciation. Austin is ground zero for that. So with the eclectic rainy street there, it's really representative of how you have some cities that are over built with apartments. You have a lot of apartment completions, but not very many new starts of apartments like I mentioned before. No, in fact, let's zoom out nationally. Here. Apartment list tells us that apartment rents are really flat. In fact, they're down seven tenths of 1% over the past year, available single family homes? Well, they're in more scarce supply than apartments, and the CoreLogic single family rent index tells us that their rents are up 2% annually. All right, something that completely makes sense for a change. The overbuild of apartments has slowed down their rent growth even more. But here's the thing, the overbuilding of apartments that's actually slowed down the rent growth in single family homes somewhat. And you might think that those two things aren't related, apartment rents and single family rents, but they're a little related. Just say a tenant they might ideally want a single family home, but there just aren't many of them out there for rent nationally. So then if a good new apartment is substantially cheaper, well, some proportion are going to accept an apartment as an alternative, and that's one reason that single family rent growth is just a modest 2% rather than a more normal 4% or so that you might see as a historic average. But yeah, I mean, really, the story is all these apartment completions, where a lot of them are going to be vacant for a while in some cities now, long term, apartments are going to be fine. I'm totally confident of that the demographic demand for apartments is going to be there because our population is growing and because there aren't many new apartment starts. So really that means over the next couple years, apartment supply versus demand is going to come more back into balance, while we could keep having this ongoing deficiency, though over for the single family rental homes. Perhaps the best thing that you and I can have happen to increase real estate profitability is to get rents up. So let's take a look at that. Let's look at the prospects for getting rents up in, just say, the next year or two. And there is a real bright spot here for that, and that is th...
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