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For many, it's become a scary world with $5-$6 gas, soaring food prices, spiking rents, the medical system is still a mess, and wages aren't keeping up with inflation. Inflation is at a 40-year high of 8.6%. The Fed raised rates ¾%, the biggest jump in 28 years. For every $1M in real estate debt that you have, you're benefiting $86,000 each year due to your debt debasement. Affordability has become so bad for wannabe first-time home buyers that increasingly, they're becoming your renter. Many project rent growth to exceed home price growth this year. Rent.com's Rent Report shows a 26% annual rent increase nationally. Every 1% in a mortgage rate increase decreases a buyer's purchasing power by 12%. GRE's COO Aundrea Newbern, MBA joins me. We discuss our favorite RE information sources. Aundrea expects to diversify her RE portfolio into more markets. She's been focused on southeast Georgia. Some RE resources we use: www.city-data.com, US Census Bureau data, CNBC.com, HousingWire.com, FRED data, the MLS, AirDNA.co, GREmarketplace.com. When considering adding to your RE portfolio, simply talking to a Property Manager can be more valuable than the best website. Aundrea sees a balanced market at prices $250K+, and a sellers' market at prices below $250K in southeast Georgia. Days On Market (DOM), Sale-To-List Price Ratio discussed. LTRs are in high demand and low supply. STRs are saturated in many markets. Resources mentioned: Show Notes: www.GetRichEducation.com/402 Rent.com's Rent Report: https://www.rent.com/research/average-rent-price-report/ Get mortgage loans for investment property: RidgeLendingGroup.com or call 877-74-RIDGE JWB's available Florida income property: CashFlowAndGrowth.com To learn more about eQRPs: text "GRE" to 307-213-3475 or: eQRP.co By texting "GRE" to 307-213-3475 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply "STOP" to cancel. Make passive income with apartment and other syndications: www.imaccredited.com Best Financial Education: GetRichEducation.com Get our free, wealth-building "Don't Quit Your Daydream Letter": www.GetRichEducation.com/Letter Our YouTube Channel: www.youtube.com/c/GetRichEducation Top Properties & Providers: GREmarketplace.com Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold Partial transcript: Welcome to GRE! I'm your host, Keith Weinhold. There's so much to pack into one show today - inflation at its highest rate in over 40 years, the Fed raising interest rates the most in 28 years, rents are going up fast, then GRE's COO Aundrea Newbern & I on our favorite REI resources. Today, on Get Rich Education. _______________________ Welcome to GRE! From Auckland, NZ to Oakland, CA and across 188 nations worldwide. This is Get Rich Education. I'm your host, Keith Weinhold. Before I discuss real estate, what's happening with inflation & interest rates is so exceptional that I want to cover this first. When the latest inflation reading came in at 8.6%, it dashed hopes that it's peaked. We have no evidence that it's peaked. And as I like to say, that 8.6% is just the level that the government is willing to admit to. It's really higher. It's the third month in a row that it has exceeded 8%. Treasury Secretary Janet "Grandma" Yellen has already warned of what she calls "unacceptable levels of inflation". And Yellen looks like my late Grandma Weinhold. Yeah, they look a lot alike. One difference though, is that Grandma was not wrong about inflation. Another difference between my grandmother and Yellen is that… Janet Yellen never gave me Star Wars action figures on Christmas like my Grandma did. Well, for many people, especially in the lower middle class, it's become a scary world with devastating $5-6 gas, soaring food prices and spiking rents. (I'll get to that shortly). The medical system is still a mess. Wages are up perhaps only 5%. Their quality of life is really suffering now. Libertarians point out that fiat inflation is theft of one's private property. You earned a dollar. Now your prosperity has been stolen. Sneaky shrinkflation is stealing from you too. Yeah, you're not imagining it, Gatorade has trimmed its 32 ounce bottles down to 28 ounces. A small box of Kleenex has shrunk from 65 tissues down to 60. Package sizes are shrinking faster than Lake Mead, all while producers charge the same price or more. That's what shrinkflation means. It's become an awful economic malady for consumers. So, let's talk about higher interest rates since that's what can keep inflation from soaring. Many interest rate types are based off of the Federal Funds Rate. Now, I like to look at history to see what typically happens in like scenarios. History doesn't tell you everything, but many people don't look at it. Rewinding three years, this rate was hiked up to 2.5% by early 2019… and the stock market was freaking out by then. Trump even demanded a rate cut. He got it and that, turned stocks around. Yes, Presidents are supposed to stay independent of the Fed, but, in any case… Just last week, the Fed Funds Rate was raised up to 1.75%... and the stock and crypto markets have already taken a swan dive off the high board. Everyone thinks that rates are going to be raised again at the next Fed meeting next month. So how do you think that equity markets are going to like that? History shows us that they don't. But see, history shows us that even when the Fed Funds Rate is raised to 10%, it can take years to quell inflation. Commodities like housing, food, and energy, often excel in either inflationary times or recessionary times. That's where you want to be. Buy & own what people need, not what they want. These things have a finite supply. Bringing them into existence takes "proof of work". Proof of work means that it takes real world resources to extract or produce something—like framing roof trusses, growing timber for lumber, mining gold, extracting oil, or growing wheat. If you held any of these commodities individually, you might merely hedge inflation. But if you can control an entire commodity by only putting one-quarter or one-fifth of your "skin in the same", then you get to short the dollar too. "Shorting" means that you're betting that something is going to fall in value—the dollar in this case. Now you're creating leverage and arbitrage. You're really profiteering from inflation ehre. Real estate is like a basket of commodities. It is made of: lumber and copper and glass and all kinds of commodities. So, if you have $1M in real estate debt, it's now being debased at a rate of 8.6%. Great. This effect alone has increased your prosperity by $86,000 this year—$86,000 this year alone, and that's besides appreciation, income, tax benefits, and amortization. Yeah, you've got an $86K tailwind. Do you remember back in 2019 when I did the podcast episode called The Debt Decamillionaire? It was Episode 260. You might remember that episode. That's when I touted the counterintuitive merits of taking out $10M in real estate debt... with the payments outsourced to tenants. Now, I know that not everyone has the wherewithal to do that. But if you were able to implement that plan, it has now created an extra $860,000 of annual wealth for you. Yes, as one of just five ways you're paid. If you think that sounds scary - or unconventional - it's definitely unconventional. Because being conventional gets one nowhere. So, though you might have not been able to amass that much good debt, I was ahead of the inflation, helping you get out in front of it to take advantage of it. Of course, I talked about it well before 2019 too. And, no, I sure didn't know that a pandemic was coming in 2020 and it was going to bring all this inflation this quickly… but that is how things worked out. Now, if you're uninitiated on this, if you originate $10M in loans, understand something. Your net worth didn't just decrease by $10M on the day that you got the loan. The day that you originate the loan, what happens is that you've now got $10M in your asset column and $10M in your debt column. Leverage amplifies the $10M in your asset column… and then your debt column erodes through both tenant-made principal paydown - and this higher inflation. Maybe I'm stretching your thinking just merely by discussing 8-figure debt like that. So why is someone really compelled to be a real estate investor today? One big reason is that soaring inflation is going to be around for a while. So last Wednesday, when the Fed raised interest rates three-quarters of 1% - their highest daily increase since 1994. Understand that higher interest rates decrease demand. There's another name for substantially decreased demand. That is called a recession. I don't know if we'll get that far. Now, capitalism is not inherently inflationary. Sure, as employers' demand for labor rises, that's inflationary. But as businesses compete to offer goods and services at the lowest price - which is capitalism - that's deflationary. Libertarians are quick to point out that America has too much government intervention to be considered a truly capitalist economy anymore. That's a different conversation. But some have speculated that politicians are plotting another stimulus check drop on American citizens so that they can deal with inflation. I really hope that they do not do that. Sheesh, this would be a policy blunder. This would be like shooting a man that's already dead. This absurd approach of "printing up currency" would be to help people deal with the consequences of... "printing up currency". If you think that's preposterous, well… Quebec is actually doing this. They're issuing $500 stimulus checks to help the Canadian province's residents deal with inflation. Yeah, that's really happening. Soaring gas prices aren't just painful for summer road-trippers. Because fuel is a critical input for so many goods and services, higher costs are causing havoc across the economy in a lot of places that you wouldn't expect it… Aviation: Airfares in the US skyrocketed 19% in April from a month earlier, an increase that is almost exclusively driven by a jump in jet fuel prices, United CEO Scott Kirby said. Now, you might have expected that one. But get this… Law enforcement: A sheriff's department in Michigan instructed its deputies to cut back on visits for non-urgent calls because it had blasted through its fuel budget with months remaining until a new one kicks in. (Yeah, inflation affecting law enforcement!) Emergency services: An ambulance crew in Pittsburgh said it was limiting its service outside of 911 calls after facing a similar budget crunch. Its fuel expense for the full year is typically $50,000, and it's already got close to that entering June. Landscaping: Lawnmowers and trimmers use gas to make your front yard the envy of the neighborhood. But after absorbing all of the cost increases they can, some landscapers have slapped a surcharge on customers, and others are even looking into electric mowers and propane as an alternative fuel. In any case, a look at history tells us that we could be in for high inflation for a full decade. So make financial decisions accordingly. Risk assets are typically really sensitive to big moves in inflation and interest rates. Major stock indices are down, down, down. And cryptocurrencies are in an all-out historic meltdown. They're more volatile than stocks, and many have lost 50%-60%+ of their value just this year. Crypto trading platforms have halted withdrawals Companies cut jobs Panicked investors dumped their holdings The public is finally dismissing promoters' claims of "Hey, I made $50k on doodoo coin. So you can you!". You don't really hear that lately. Let's Go Brandon Coin, now worth $0.00. And "Let's Go Brandon" coin makes Dogecoin look like some sort of respectable family heirloom. I actually still think bitcoin could have some potential, but… So then where to look? Where do you go for yield today? Some feel that the "true rate of inflation" is 15% today. Then that's how much prosperity you lose by storing cash. (I believe it's wise to hold at least 3-5% of your real estate portfolio's value in cash.) One place could be oil if you think there's still a runup to be had there. But oil has performed well so far this year. Gold still hasn't really awakened despite inflation. What you can do… is… Follow the money. Big institutional buyers like American Homes 4 Rent keep plowing money into real estate, especially single-family rental homes. That's historically the place to be in times of either high inflation or a recession. Though the institutional share is increasing, the overwhelming majority of homes are still bought by individuals just like you. In the fourth quarter of 2021, institutional buyers only comprised 18% of home purchases. As affordability clamps down on wannabe first-time homebuyers, unfortunately, many of these fine people never make it to the closing table. Every 1% in a mortgage rate increase decreases a buyer's PP by 12%. Mortgage interest rates are now 6%+ on OOs, about 7% on rentals. I believe that the only way houses are going to get more affordable anytime soon is if mortgage rates come down. That's because home prices aren't coming down anytime soon. So what do these priced-out people do? Increasingly, they become your renter. Rent price growth is predicted to outpace home price growth this year. Though some measures are lower, Rent.com's Rent Report shows an astounding 26% annual national rent increase. While a lot of major markets are struggling with a streak of Fed rate hikes that could drag on longer than the final two minutes of an NBA game... ...for real estate investors, the rent just keeps flowing in. And here's what it comes down to. Picture this. Like I've discussed before, first home prices rise, and then rents follow later. Picture two waves. Say that these two waves are 18 months apart. The first wave is home prices. Today, prices are still climbing but the wave has likely crested. That second wave that's coming in now are the torrid rent price increases. The trough between the two waves is where the cash flow is worst on new purchases. And now the second wave - that rent increase wave - is building. That's the ah… seafaring here in the rental housing market ocean if you will. Hey, In the past, I've discussed where I've invested and what RE types I like to own. Why don't we hear from GRE's own COO Aundrea Newbern, MBA about how she's positioning her portfolio in this environment of normalizing prices & spiking rents. Also, she & I will discuss some of our favorite resources & websites for real estate info. That's straight ahead. I'm Keith Weinhold. You're listening to Episode 402 of Get Rich Education! __________________ Yeah, great stuff from Aundrea, as always. We discussed markets. Of course, it's about the submarket too. As an example, maybe you don't feel like Erie, PA or Toledo, OH or Grand Rapids, MI are fast-growing markets. Actually, I think Grand Rapids, for one, is growing, but the point is, that even if a metro has a stable population but it's, say, medical district is booming - like a lot of cities' medical districts are… you may very well be better off in an OK metro with a booming medical SUBmarket than you are elsewhere. It's often about that SUBmarket within a metro that really matters to you. There aren't too many places that you can invest & get yield today. But high inflation is the motivator to do so. Create one login, one time, it's free & get access to all of our provider at GREmarketplace.com For everyone here… COO Aundrea Newbern, MBA, Content Manager Matthew Blunt, Producer - me &, Sound Engineer, Investment Coach Naresh Vissa, Website Marvin Diaz Jr, Advertising Jake Madoff, I'm your host Keith Weinhold. Don't Quit Your Daydream!

The housing market has calmed, but it's still strong. The homeownership rate of 65% is poised to fall these next few years. People must live somewhere. This should make for more renters. Mortgage delinquencies have fallen for seven straight quarters. The forbearance program kept people in their homes. "The Great Reshuffling" describes the US housing market since 2020. Inflation flips money upside-down. Focus on prudent borrowing, not saving. International Man Doug Casey joins us. He calls for a "Greater Depression" ahead. For consumers, the costs of energy, food, and housing have become crippling. Doug thinks that the decline of world economies will continue. World cities have more people living on the streets. He thinks that the Fed can't hike rates very high. It will result in too many debt defaults. Then how will inflation be curbed? Doug thinks you should save, but don't save in dollars. Are price controls coming? That's when the government tells companies that there's a ceiling on the price they can charge for their goods and services. We discuss what you can do to prevent being wiped out in a crisis. I discuss living well vs. austerity. Resources mentioned: Show Notes: www.GetRichEducation.com/401 More on Doug Casey: https://internationalman.com/ Current US debt level is over $30T: www.usdebtclock.org Get mortgage loans for investment property: RidgeLendingGroup.com or call 877-74-RIDGE JWB's available Florida income property: CashFlowAndGrowth.com To learn more about eQRPs: text "GRE" to 307-213-3475 or: eQRP.co By texting "GRE" to 307-213-3475 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply "STOP" to cancel. Make passive income with apartment and other syndications: www.imaccredited.com Best Financial Education: GetRichEducation.com Get our free, wealth-building "Don't Quit Your Daydream Letter": www.GetRichEducation.com/Letter Our YouTube Channel: www.youtube.com/c/GetRichEducation Top Properties & Providers: GREmarketplace.com Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold Partial transcript: Welcome to GRE! I'm your host, Keith Weinhold. While much of America & the world keeps getting crushed by inflation, you're profiting from it. I provide you with a housing market update… then, as higher inflation reduces the quality of life for so many WORLD residents, today's guest gives both us a global and national perspective on the prospects for a DEpression, today on Get Rich Education. __________________ Welcome to GRE! From NYC's Brooklyn Bridge to Bainbridge Island, WA and across 188 nations worldwide, I'm Keith Weinhold. This is GRE! And it's Episode 401. Now, no, it's definitely not episode 401(k). No life deferral plans here! Uh, oh excuse me… they'e called… uh, tax deferral plans. Though life-deferral plans would be a more apropos moniker. I'm grateful that you're here for another wealth-building week. Now… asking an angry spouse to calm down is not exactly a tactic that's... effective. By now, Jerome Powell has been effective at raising interest rates to help America's housing market calm down. Though mortgage rates have inched lower in recent weeks, they're still 2% higher now than they were a year ago today. In fact, the rate rise from early March to early May was the swiftest that I've seen in my entire life. Rates scaled a wall. Clearly, this impacts affordability. The rate of property sales is a little lower now… off its peak. It's getting more Darwinian out there. The NAR estimates that 15% of wannabe first-time homebuyers will be priced out of the market this year. People have to live somewhere. If they can't own, they'll have to rent... or keep living in their parents' basement… that's an option for some people too. Right now, the homeownership rate is 65%... and that is pretty close to the average of the past few American generations. I'll tell you… that 65% homeownership rate is poised to fall faster than dogecoin. Well, what this likely falling home ownership rate means is that the renter pool should swell, putting more upward pressure on rents. That's what happens. If home ownership goes from 65% to 60%, then America's renter proportion basically goes from 35% up to 40%. You know how I've talked about how home prices rise first, then rent increases lag behind? Well, this is it. This is the place and time where rents catch up. With housing prices, are we set up for a recipe of "housing crash" or is it more like "housing calm"? Looking at purchase applications, demand is probably past its peak. But housing demand still drastically exceeds supply. Normal housing supply is about 1.5 million units. We've come up from a jaw-dropping paucity of 376,000 homes back in February. And it's still just 516,000 now (chart). We're only up a tad from famine-like levels. America still needs about 300% more inventory just to bring the market back into supply-demand balance. Housing supply is inelastic; it cannot be increased quickly. It'll take several years to reach balance. How else can we measure this balance? One way is with days on market (DOM). Pre-pandemic it was 45 days. Now, despite higher interest rates, it's under 30 days & under 20 days in a lot of markets. Mortgage delinquencies have fallen for seven straight quarters. The forbearance program worked. One can critique its morality. But it kept people from losing their homes. As the market entropy - with wild bidding wars & a "free for all", couldn't last forever - nor was it good that that condition persist - it's still a strong housing market. Expect a gradual return to a calmer, more normalized condition. Yes, "calmer" market conditions are poised to emerge here. Hey, pretty soon, you might not have to offer more than the list price for a property. Expect less competition from all-cash buyers. Sheesh, "all-cash buyers". What are those zero-leverage psychos doing anyway? Hey, property inspections are coming back. Imagine that you can ask a seller to fix some things for you and not fear that they'll reject your offer. So what is the bottom line with today's housing market? Rents should keep rising faster than historic norms. Supply is so low that housing price crash prospects are near zero, probably even through 2023. 20%+ annual price increases still exist in many markets. Nationally, this is calming now. By the end of the year, home price appreciation should still be higher than the historic norm of 5%. And you know… Back on December 1st of last year, I published GRE's 2022 National Median Housing Price Forecast and I also announced it on this show at that time that I expected a 9% to 10% rate of home price appreciation this year. We're nearly at mid-year here, and I still like how that forecast looks. In America, you've heard of the Great Resignation or the Great Migration but I think that the term that best encapsulates what's gone on in American housing since the start of this decade is "The Great Reshuffling". Working from home was a significant driver of this "Great Reshuffling" and accounted for more than half of the steep increases in home prices seen during the pandemic. That's what new research has found by the Nat'l Bureau Of Economic Research. By now, you've got more Americans that are shuffled into place. That found that long-term home with the realities of their new life. That's the bottom line. There is a Great Reshuffling, and now people are settling into place so we're kind of seeing this welcome "calming" of the housing market as we move toward eventually settling into more normal conditions. Well, hey. Thank you for the "Instant Reaction" from so many of you after last week's milestone Episode 400 where Hal Elrod & I discuss how to improve relationships and be a person of value. Greg from the United States remarked: "Two of my favorite people were together in one episode. I've been following Keith since the beginning of his podcast and journey… and I love "The Miracle Morning" and practice it habitually. Roxana from Romania said, This was just phenomenal! A terrific talk that I listened to three times already. Thank you for all the good that you do through GRE! Congratulations for 400 episodes." I appreciate the remarks there, thanks. You know, I want to hear from you, the listener. If you've been following along here and you've acted by putting income property into your portfolio and you're now the beneficiary of inflation & you're profiting from this inflation… with the Inflation Triple Crown… from time-to-time, we like to have a listener on the show. If that interests you, reach out to us through: GetRichEducation.com/Contact There's no guarantee that we can get you on the show here. We have 50x as many requests to appear on the show as available slots. But if you've had your life impacted, we want to hear from you. You don't need to be a big name. In fact, if you're just sort of salary or wage-earning person that's had their life impacted by taking GRE principles and putting them into action, I want to hear from you. Again, get started there at: GetRichEducation.com/Contact Inflation flips money upside-down. Though inflation isn't a new story, most experts believe that inflation is going to stay elevated for a longer period of time here. I think that some people - everyday people - let themselves be coerced by inflation. So they cut back on grocery spending & complain about car gasoline prices & lament that their 401(k) is plummeting & live small and maybe even live miserable. Then there's this increasingly popular narrative that seems to enforce that - you'll do with less & you'll be happy about it. And you hear more about buzzy terms, like, well "Reducing your standard of living is what "sustainable" looks like. Don't you want to live sustainably?" And people will try to conserve gasoline consumption by biking in the rain and having a muddy streak up their back. Now, all things equal. I think that doing this for the environment can be good. That's fine. Rather than sustainability, some try to mask the quality of life degradation (from inflation)... justifying it with… well, I'm practicing "minimalism". Minimalism. Yeah, I don't need to go on vacations. Translation = I'm too fearful of my financial security to even get out and see the very world that I live in. Whoever said that less is more never had more… and why have more when you can "have it all"? I kid a little bit here… But… if you keep your quality of life because you invested in real assets with good debt… then go ahead and recycle some more consumable items in your household if you want to help the environment. You don't get to recycle your life. You've only got one of those… at least here on this earth. Today's guest believes that the prospect of a Greater Depression lies ahead. Let's explore this together, today. _________________ Yeah, it's good to get the bigger-picture perspective sometimes. Doug feels that future RE price increases could be in question. Well, even if appreciation completely stopped in the future, today you can still lock in low mortgage interest rates & rent that property to others… with persistently high inflation debasing your debt all along. I brought up price controls in our chat today, which is when the government steps in & says something like, no, gas station, you absolutely cannot charge more than $6 per gallon for gasoline, or no, leaf lettuce grower, you cannot charge more than $4 for a one pound bunch of leaf lettuce. That ceiling - that price control - has often led to disastrous consequences for economies. Prices often got high in the first place because there's a relative scarcity of those goods. Then if you put a price control on, say, leaf lettuce, then producers are less incentivized to produce. They won't produce at a loss. When producers stop producing, then there's even less reason for anyone to produce the item, making it more scarce, making your consumer choices more narrow & making your life worse. Price controls can turn out to be a form of austerity. Then there's more direct austerity - which is analogous to saying that you cannot run your air conditioner below 80 degrees in order to conserve electricity. Well, that DIRECT austerity measure also reduces your quality of life… and it's politically unpopular. A President doesn't want to institute a direct austerity measure like electricity conservation. So a price control has more political expediency than austerity but it can have the same drastic result - reducing your consumer choice and quality of life. If you picked up on what Doug was saying, he said that you can save. But don't save in dollars. Saving in dollars guarantees a diminishment of your purchasing power. My take is that saving in dollars guarantees a loss in you & your family's standard of living. So the best way to avoid a "Greater Depression" at home, is to be vigilant that… Inflation flips money upside-down. Get out of dollars. Get into real assets & debt. We've built a resource here to help you do exactly that. Get out of dollars, get into real assets & good debt at GREmarketplace.com You've got the best markets & proven providers of income property. Create one login one time and connect with providers right there at GREmarketplace.com Until next week, I'm your host, Keith Weinhold. DQYD!

You often relate to other people when you show yourself as vulnerable and fallible. In many contexts, this is even better than acting professionally. Today's guest, "Miracle Morning" author Hal Elrod, tells us that people spend too much effort trying to impress others. When you give the most, it's liberating. "You SHOULD care about what others think of you. That's your reputation." -Keith Weinhold Once, Hal e-mailed friends, ex-girlfriends and colleagues to seek criticism about himself. That feedback hurt. Everyone wants change, but no one wants to change. Generosity, selflessness, and contribution foster meaningful relationships. I share that viewers were recently critical of my YouTube video. Hal admits that he believes that he's not a great listener. Hal strives to add value to every single person that he meets. Aundrea Newbern, GRE Operations Lead, joins us for milestone Episode 400. Resources mentioned: Show Notes: www.GetRichEducation.com/400 Hal Elrod's books and movie: www.MiracleMorning.com Hal's friend John Ruhlin's book "Giftology": https://www.amazon.com/Giftology-Increase-Referrals-Strengthen-Retention/dp/1732095604 Get mortgage loans for investment property: RidgeLendingGroup.com or call 877-74-RIDGE JWB's available Florida income property: CashFlowAndGrowth.com To learn more about eQRPs: text "GRE" to 307-213-3475 or: eQRP.co By texting "GRE" to 307-213-3475 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply "STOP" to cancel. Make passive income with apartment and other syndications: www.imaccredited.com Best Financial Education: GetRichEducation.com Get our free, wealth-building "Don't Quit Your Daydream Letter": www.GetRichEducation.com/Letter Our YouTube Channel: www.youtube.com/c/GetRichEducation Top Properties & Providers: GREmarketplace.com Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold Partial transcript: Welcome to GRE! I'm your host, Keith Weinhold. Being a person of value and building lasting relationships often comes down to self disinterest, empathy, and connection. You're going to build not just your wealth mindset, but your skillset. It's milestone Episode 400, today, on Get Rich Education! Welcome to GRE! From Cherry Hill, NJ to Cherry Springs Dark Skies Park, PA and across 188 nations worldwide, you're listening to one of America's longest-running and most-listened to shows on real estate investing. That's our major so to speak… with minors in economics and wealth mindset. I'm your host, Keith Weinhold. You probably know that after 400 episodes. Today's guest doesn't often do podcast conversations like this. But GRE's Operations Lead, Aundrea introduced me to "Miracle Morning" author Hal Elrod last year. So Hal is standing by, and then, a bonus, as Aundrea joins me near the end of the show today as well. Yeah, so here on milestone Episode 400, there aren't any balloons falling out of the sky or anything. It's an opportunity to expand your thoughts & mindset & skillset in a different direction that should benefit you both within real estate investing & your broader life outside of it - from relationships with your real estate agent to your spouse. In human relations, more than ever, people relate more to you as a vulnerable and even fallible person than they do as one that acts strictly like a professional in a lot of circumstances. The best way to show others in a business relationship (that you don't know very well) that you're a real human being & that loosens up both of you & make you laugh is when you go out of your way to point out that when you left home this morning… you've got mismatched socks on… and you make some joke about it… something innocuous yet relatable like that. Then there's handling ego and criticism in a way that makes you endearing and empathetic. And by the way, the definition of empathy is "the ability to understand and share the feelings of another person." Now, we get overwhelmingly positive feedback and comments about the show here… and I am grateful to you for that, whether it's through Apple Podcasts reviews, or where you can always reach out if you've got a question or concern or suggestion at GetRichEducation.com/Contact… or increasingly, we get more & more comments from you on our Get Rich Education YouTube Channel. There is a rather robust comments section there… … and there's one popular video that we have over there. It has more than 100,000 views and a lot of "Likes" and "Comments". And I was rather criticized for how I handled this video - it was an interview. Now, it was the type of video that crossed over, it didn't bring in our usual real estate investor crowd. It was kind of a hybrid crowd of geography & real estate. And, again, we get overwhelmingly positive feedback here. But the nice remarks aren't where you get the lessons, so… I got dozens of critical comments on this video… and these commenters were clearly critical of the way that I handled the interview. It wasn't the guest. Comments were rather disparate. Some said that I brought no value to that interview - I was the host with a fairly prominent guest. Others said that I talked too much, some said I talked too little, it just seemed like I couldn't do anything right with that crowd. Now, one way that I could have handled it is set a policy here that any negative comments have to be deleted. We could have just deleted them all. Well, I don't want to do that. You can disagree. In fact, some say that a disagreement is actually the start of a great conversation. We could go in there & reply and tell the commenter that they're being dumb or say something else disparaging. Here's how I handled it once I learned about this. I went into the YouTube comments myself, read a bunch of the criticism, and made individual responses to a bunch of them. My response was something like: Hey, thanks for the feedback. Others seem to take exception to this material too. It is probably in my best interest to read all of these comments, see what I can learn from this, and I've got to do better next time. I have clearly disappointed a lot of people. That was my response. Something like that. Well, what did that do… it appeared to engender… empathy, really. Some of the detracting commenters then came back to me & said, "Aw, you know, that wasn't so bad. I don't think there's much that you need to change. I still learned a lot from your video." See, when I showed the world that I'm listening and that I'm a fallible human being, just like we all are, sometimes it makes the critic come back and sort of repent or even reconsider. Next week, here on the show, "International Man" Doug Casey & I are going to discuss economics and what he thinks the prospects of entering what he calls "The Greater Depression" are. Today, Hal Elrod & I on how you can be a person of value and build meaningful relationships…

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

Are "coffin homes" coming to the United States? This is concerning. Housing is so expensive that people live in cocoons. A new Biden plan makes efforts to increase American housing supply. Finally! We need help on the supply side, not the demand side. I explore recession prospects with you. During 7 of America's 8 recessions (over the last sixty years), home prices only fell once. What Really Matters: "If you had invested $1,000 in JP Morgan in 1882, you'd be dead today." You can borrow against your RE portfolio's value with a cash-out refinance, tax-free. It's like "lump sum cash flow". Add properties to your portfolio through our international network at GREmarketplace.com Resources mentioned: Show Notes: www.GetRichEducation.com/398 GRE Video: What Really Matters https://youtu.be/Yhkvjg-gj9Q California's Cocoon-Like Pods: https://www.cbsnews.com/news/sleeping-pods-startup-800-a-month-brownstone-shared-housing/ Biden's plan to increase American housing supply: https://www.whitehouse.gov/briefing-room/statements-releases/2022/05/16/president-biden-announces-new-actions-to-ease-the-burden-of-housing-costs/ American Median Home Price Since 1963: https://fred.stlouisfed.org/series/MSPUS Get mortgage loans for investment property: RidgeLendingGroup.com or call 877-74-RIDGE JWB's available Florida income property: CashFlowAndGrowth.com To learn more about eQRPs: text "GRE" to 307-213-3475 or: eQRP.co By texting "GRE" to 307-213-3475 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply "STOP" to cancel. Make passive income with apartment and other syndications: www.imaccredited.com Best Financial Education: GetRichEducation.com Get our free, wealth-building "Don't Quit Your Daydream Letter": www.GetRichEducation.com/Letter Our YouTube Channel: www.youtube.com/c/GetRichEducation Top Properties & Providers: GREmarketplace.com Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold

Will you be banned as a real estate investor? Some jurisdictions consider adopting this stance to keep soaring prices in check. Some workers cannot afford to return to the office. If they leave home, they would have new expenses for gasoline, meals, parking and the big one—child care. Of the "5 Ways Real Estate Pays", historically: three are now high, one is low, and one is the same. Caeli Ridge joins us. She's the President of Ridge Lending Group. They specialize in income property loans. Despite higher mortgage interest rates, investor-centric mortgage companies like Ridge haven't seen much decline in business. Learn why. Their "All-In-One Loan" can reduce the amount of property interest that you pay over time. It's a 30-year line of credit with high flexibility. Use Ridge's All-In-One Loan Simulator to see if you save: https://ridgelendinggroup.com/aio-loans/ We discuss interest-only loans (which I like) and negatively amortizing loans. The latter got borrowers in trouble during the Global Financial Crisis; LTVs were as high as 115%. Interest rate lock periods are up to 90 days at Ridge. Investing out-of-state is easy. A mobile notary comes to your home, office, or even on vacation at a resort. Ridge helps you sequence your investor loans, taking a long-term, holistic approach to your financial freedom. Resources mentioned: Show Notes: www.GetRichEducation.com/397 Get mortgage loans for investment property: RidgeLendingGroup.com or call 877-74-RIDGE All-In-One Loan Simulator to see if you save: https://ridgelendinggroup.com/aio-loans/ Dallas' proposal to limit REIs: https://www.businessinsider.com/hoas-and-legislators-consider-taking-action-against-real-estate-investors-2022-5 JWB's available Florida income property: CashFlowAndGrowth.com To learn more about eQRPs: text "GRE" to 307-213-3475 or: eQRP.co By texting "GRE" to 307-213-3475 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply "STOP" to cancel. Make passive income with apartment and other syndications: www.B2Rdirect.com Best Financial Education: GetRichEducation.com Get our free, wealth-building "Don't Quit Your Daydream Letter": www.GetRichEducation.com/Letter Our YouTube Channel: www.youtube.com/c/GetRichEducation Top Properties & Providers: GREmarketplace.com Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold

The mad scientist of multifamily is here today. Neal Bawa is a data scientist. He keeps emotion out of real estate for investors in his $947M portfolio. He believes that higher mortgage interest rates are a smaller obstacle than the Fed's currency creation and destruction. He says: "Accept the risk." We discuss investor confirmation bias. Neal thinks American cash flow will keep diminishing. Of all emerging trends, Neal believes that the work from home trend is among the most substantial. Learn more about Neal at www.MultifamilyU.com or by searching "Neal Bawa". The blockchain is a digital ledger. It allows everyone to access information publicly and securely. It allows for the democratization of information. Blockchain looks to disrupt the real estate title industry. Exorbitant title insurance fees could go extinct. Tokenization is easier with blockchain. This means that you can sell real estate shares without friction. Institutional investors are poised to own more of the real estate market, taking share from mom-and-pop operators. Resources mentioned: Show Notes: www.GetRichEducation.com/396 Neal Bawa's resources: Google search "Neal Bawa" Grocapitus.com MultifamilyU.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 877-74-RIDGE JWB's available Florida income property: CashFlowAndGrowth.com To learn more about eQRPs: text "GRE" to 307-213-3475 or: eQRP.co By texting "GRE" to 307-213-3475 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply "STOP" to cancel. Make passive income with apartment and other syndications: www.B2Rdirect.com Best Financial Education: GetRichEducation.com Get our free, wealth-building "Don't Quit Your Daydream Letter": www.GetRichEducation.com/Letter Our YouTube Channel: www.youtube.com/c/GetRichEducation Top Properties & Providers: GREmarketplace.com Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold

Rents are spiking 13-15% annually in America today. When they rise, they rarely ever fall again. This is why rent amounts are called "sticky". Learn why. Even when I was a landlord during the GFC fifteen years ago, my rents didn't fall. Rents are skyrocketing due to: Low housing supply Higher prices Higher interest rates Demographics. 25-34 year-olds are in prime household formation years. They want their own place. This is America's most populous age cohort. Next, I talk with an Alabama / Florida builder about how he overcomes today's material supply chain and labor shortage difficulties. They have a 93-day build time. How? They store windows so that they cannot run out. Cabinets have been a problem so bad that they've had to leave homes 99% complete until cabinets were ready. Lumber and petroleum product price volatility has been a challenge. They have their own division for titling vacant land for future building. Alabama has America's 2nd-lowest property taxes. As an out-of-state investor, you get to pay property tax in the state where you own property, not where you live. To get started with Alabama income property, start at: www.GREmarketplace.com/Alabama This build-to-rent provider uses fixtures like: LVP, granite or quartz countertops, stainless steel appliances. LTRs and STRs will be available shortly. Start at: www.GREmarketplace.com/Alabama Resources mentioned: Show Notes: www.GetRichEducation.com/395 Get started with new-build AL & FL long and short-term rentals: www.GREmarketplace.com/Alabama Get mortgage loans for investment property: RidgeLendingGroup.com or call 877-74-RIDGE JWB's available Florida income property: CashFlowAndGrowth.com To learn more about eQRPs: text "GRE" to 307-213-3475 or: eQRP.co By texting "GRE" to 307-213-3475 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply "STOP" to cancel. Make passive income with apartment and other syndications: www.B2Rdirect.com Best Financial Education: GetRichEducation.com Get our free, wealth-building "Don't Quit Your Daydream Letter": www.GetRichEducation.com/Letter Our YouTube Channel: www.youtube.com/c/GetRichEducation Top Properties & Providers: GREmarketplace.com Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold

The housing crash is 100% certain. That's because it's a supply crash, not a price crash. I define a price crash as a loss in valuation of 20% or more. Here are the bubble factors that I consider in today's show: Price, inflation-adjusted price, interest rates, affordability, bond yields, personal incomes, foreign buyers, equity position, housing supply and more. From 2018 to 2022, I tell you about my recent housing forecast history. Redfin shows us signs of a housing market slowdown. For Jacksonville investment property, start here: www.GREmarketplace.com/JAX Properties that don't cash flow with a 20% down payment often do with a 40% down payment. But your leverage falls from 5-to-1 down to 2.5-to-1. Jacksonville has low cost properties, favorable climate, strong population growth, and growing industries like the Port Of Jacksonville. Get started with Jacksonville property at: www.GREmarketplace.com/JAX Resources mentioned: Show Notes: www.GetRichEducation.com/394 Get started with Jacksonville property: www.GREmarketplace.com/JAX Get mortgage loans for investment property: RidgeLendingGroup.com or call 877-74-RIDGE JWB's available Florida income property: CashFlowAndGrowth.com To learn more about eQRPs: text "GRE" to 307-213-3475 or: eQRP.co By texting "GRE" to 307-213-3475 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply "STOP" to cancel. Make passive income with apartment and other syndications: www.B2Rdirect.com Best Financial Education: GetRichEducation.com Get our free, wealth-building "Don't Quit Your Daydream Letter": www.GetRichEducation.com/Letter Our YouTube Channel: www.youtube.com/c/GetRichEducation Top Properties & Providers: GREmarketplace.com Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold

One niche that people are passionate about is investing in self-storage facilities (SSF). SSFs are recession-resilient and there's less to maintain. Your "tenants" are often cardboard boxes, not humans. This makes it easy to manage. Tenants often expect to stay for 6 months, but stay for 3 years. A 10 x 10 storage space might rent for $200. You could increase the rent by 10% to $220. They won't move out due to a $20 increase, but you got a 10% rent hike across all your units. The best SSF locations are accessible, for example, near an expressway interchange. SSFs are little more than 4 pieces of sheet metal, a floor, and a door. You can invest alongside today's SSF expert guest, Dave, at: www.gremarketplace.com/selfstorage This business model: Buy property from a mom-and-pop operator, add size and scale, and sell to a REIT, all in a 3 to 6-year span. One must be accredited and invest at least $50K. Investors receive reports quarterly. SSF cash flow is modest, typically 3-7%. This is an equity play, where you could 2-3X your funds on the sale at exit time. Learn more and get started at: www.gremarketplace.com/selfstorage Resources mentioned: Show Notes: www.GetRichEducation.com/393 Get started. Learn more about self-storage investing: www.GREmarketplace.com/selfstorage Get mortgage loans for investment property: RidgeLendingGroup.com or call 877-74-RIDGE JWB's available Florida income property: CashFlowAndGrowth.com To learn more about eQRPs: text "GRE" to 307-213-3475 or: eQRP.co By texting "GRE" to 307-213-3475 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply "STOP" to cancel. Make passive income with apartment and other syndications: www.B2Rdirect.com Best Financial Education: GetRichEducation.com Get our free, wealth-building "Don't Quit Your Daydream Letter": www.GetRichEducation.com/Letter Top Properties & Providers: GREmarketplace.com Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold