Get Rich Education

Today's guest reveals how he gets $10,755 of monthly cash flow with four SFHs. They're long-term rental tenants. Get our free newsletter here: www.getricheducation.com/letter I tell you why a man with $20 million of debt is a financial winner, making analogies to Brett Favre and Cy Young. Ryan Chaw of Sacramento, CA joins us. A full-time pharmacist, he's age 29, on track to retire from real estate income by age 31. Unusually, he invests in California single-family homes (SFHs). It's not an area known for cash flow. He rents them to carefully-screened college students. He self-manages, but hasn't visited his properties in over a year. In areas like Stockton, CA, he gets $3,000 rent from a $300K SFH. Ryan uses his "PRIME" Method: Placement of ads, Review applicants' social media, Identify tenant type, Measure responsiveness, and Ensure proof of income. He has 17 tenants in four SFHs. Ryan gets money for down payments with his W-2 job. He also uses a HELOC to reset his leverage and create arbitrage. He travels the world too. He won't delay all gratification. Resources mentioned: Show Notes: www.GetRichEducation.com/332 Ryan Chaw's free guide: www.NewbieRealEstateInvesting.com Mortgage Loans: RidgeLendingGroup.com New Construction Turnkey Property: CashFlowAndGrowth.com EQRPs: text "EQRP" in ALL CAPS to 72000 or: eQRP.co By texting "EQRP" to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply "STOP" to cancel. Best Financial Education: GetRichEducation.com Get our free, wealth-building "Don't Quit Your Daydream Letter": www.GetRichEducation.com/Letter Top Properties & Providers: GREturnkey.com Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold

Hear a mock negotiation between Chris Voss & I for a fourplex building today! The former lead international hostage negotiator for the FBI, Chris is now America's top negotiation coach. In a negotiation: Who goes first? Does "anchoring" work? In real estate, terms are often more important than price. "Never be so sure of what you want that you wouldn't take something better." -Chris Voss, today's show He does not use the term "win-win". It's a giveaway that someone is trying to pick your pocket. The "other side" always has hidden cards that could benefit you. Be curious. A positive mind frame makes you 31% smarter. At times, it helps to address "fairness" at the beginning of a negotiation. Let the word "no" out softly. If there's an elephant in the room, address it. Chris uses the "mirroring" technique on me. He makes me think that conceding was own idea! Amazing. He has free negotiation resources for you. For his newsletter, text blackswanmethod to 33777. Outside the U.S., go to: www.blackswanltd.com Silence and humor are effective negotiation techniques in certain situations. I tell Chris my favorite negotiation line and get his opinion: "What flexibility do you have?" Resources mentioned: Show Notes: www.GetRichEducation.com/331 Get free newsletter from Chris Voss: U.S.: Text blackswanmethod to 33777 Outside U.S.: www.blackswanltd.com Chris Voss' book: https://www.amazon.com/Summary-Never-Split-Difference-Analysis/dp/1683784391 Mortgage Loans: RidgeLendingGroup.com New Construction Turnkey Property: CashFlowAndGrowth.com EQRPs: text "EQRP" in ALL CAPS to 72000 or: eQRP.co By texting "EQRP" to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply "STOP" to cancel. Best Financial Education: GetRichEducation.com Get our free, wealth-building "Don't Quit Your Daydream Letter": www.GetRichEducation.com/Letter Top Properties & Providers: GREturnkey.com Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold

After your first 10 rental properties, what comes next? Buying more than 10 financed properties of 1-4 units often incurs an interest rate about 2% higher. Apartment buildings of 5+ units is an option. You can become a real estate syndicator. It is sophisticated. This means you identify a big real estate complex and attract other investors' money to the deal. Syndications often SEC-regulated. To attract investors, you must also build your brand. You can be a private money lender with a stable 10% cash-on-cash return. Real estate is your collateral. See: www.getricheducation.com/lending With agricultural real estate, the trees are the tenants. They don't vacate the property and they're low maintenance. The asset literally grows; land is titled to you. See: www.getricheducation.com/teak "Family offices" manage wealth for affluent families and individuals. They might cost $1M per year, meaning you'd often need assets of $100M+. Direct real estate investors "feel the bumps". I recently had a truck accident-damaged property that was in disrepair for 9 months! This year, John Burns RE Consulting predicts existing home prices to rise +8%, new homes +9%. It took Tesla 17 years to make a profit. You often do this in 1 month with real estate. Damion Lupo drops by with crucial eQRP updates. An eQRP lets you: invest your retirement funds in nearly anything, $58,000 annual contribution limit, no custodian, and avoid a 37% UBIT tax hit (like you have with SD-IRAs). Resources mentioned: Get the free eQRP book; text "EQRP" in all capital letters to: 72000 Great turnkey provider for beginners: www.MidSouthHomeBuyers.com Rare provider with 1% rent-to-price ratio: www.GetRichEducation.com/Dayton Private Money Lending: www.GetRichEducation.com/Lending Teak hardwood trees: www.GetRichEducation.com/Teak New fourplexes in West: www.GetRichEducation.com/Fourplex New fourplexes in Southeast: www.GetRichEducation.com/Southeast Turn $100K into $300K in five years: https://www.getricheducation.com/turn-100k-300k-five-years/ Show Notes: www.GetRichEducation.com/330 Mortgage Loans: RidgeLendingGroup.com EQRPs: text "EQRP" in ALL CAPS to 72000 or: eQRP.co By texting "EQRP" to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply "STOP" to cancel. New Construction Turnkey Property: CashFlowAndGrowth.com Best Financial Education: GetRichEducation.com Get our free "Don't Quit Your Daydream Letter": www.GetRichEducation.com/Letter Top Properties & Providers: GREturnkey.com Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold

Joe Biden's economic plan for real estate investors is detailed. Expect: higher income tax, extended eviction & foreclosure moratoriums, $15 minimum wage, $15K first-time homebuyer tax credit, more stimulus checks. Can landlords still evict tenants for non-payment of rent? Yes. I explain how. With all this money printing, I expect inflation to stay low due to low velocity. Ken McElroy joins me again today. He's the Rich Dad real estate advisor. Migration patterns per U-Haul favor these top 5 states: TN, TX, FL, OH, AZ. #1 for out-migration last year was CA. 72% of people move within the same state, per Ken. Today's tenant trends: Larger units, security gates, pets, outdoor lighting, small yards, remote rent collection. Proximity to central business districts is less important. Pets attract seniors. Ken has increased income by embracing pets, and reduced expenses by requiring that tenants have Renters Insurance. Learn about how he handled recessionary apartment income disruptions for his investors. Resources mentioned: See Ken McElroy's predictions video: www.KenMcElroy.com/GetRichEducation Show Notes: www.GetRichEducation.com/329 Mortgage Loans: RidgeLendingGroup.com EQRPs: text "EQRP" in ALL CAPS to 72000 or: eQRP.co By texting "EQRP" to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply "STOP" to cancel. New Construction Turnkey Property: CashFlowAndGrowth.com Best Financial Education: GetRichEducation.com Get our free "Don't Quit Your Daydream Letter": www.GetRichEducation.com/Letter Top Properties & Providers: GREturnkey.com Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold

My housing prediction for the next few years is revealed at the beginning of the show. Learn why higher interest rates mean less housing supply. Learn how to buy new construction income properties as inexpensively as $169K at: www.getricheducation.com/southeast Last year: Real estate was up 11%, mortgage rates fell from 3.72% down to 2.67%, inflation fell from 2.5% to 1.4%, S&P 500 up 16%, dollar weakened, bitcoin surged 400%+, gold & silver had their best years since 2010, oil down 21%. "Build-To-Rent" (B2R) means that properties are constructed with tenant-occupants, not owner-occupants. Durable finishes are used, like cement hardie board, vinyl plank flooring, and granite countertops. B2R single-family homes as low as $169K (new construction). Duplexes, triplexes, and fourplexes are also offered in Florida and Georgia at: www.getricheducation.com/southeast Tenants in these B2R properties often have incomes of $100K+. Today's renters want a yard, even if it's small. They don't want a fireplace. With remote working trends, proximity to an urban area is now less important. Resources mentioned: Build-To-Rent FL & GA property: www.GetRichEducation.com/Southeast Show Notes: www.GetRichEducation.com/328 Mortgage Loans: RidgeLendingGroup.com EQRPs: text "EQRP" in ALL CAPS to 72000 or: eQRP.co By texting "EQRP" to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply "STOP" to cancel. New Construction Turnkey Property: CashFlowAndGrowth.com Best Financial Education: GetRichEducation.com Get our free "Don't Quit Your Daydream Letter": www.GetRichEducation.com/Letter Top Properties & Providers: GREturnkey.com Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold Chris Voss on Masterclass: www.Masterclass.com

Has "debt-free" now become a poverty marker? Debt is good when: 1) The interest rate is lower than inflation, and 2) When tenants pay your debt for you. Get our free "Don't Quit Your Daydream" Letter at: www.getricheducation.com/letter Home equity is: unsafe, illiquid, and its rate of return is always zero. If you pay an extra $100 toward your mortgage principal, you just converted your cash flow to equity. That's the opposite of financial freedom. Learn myriad reasons for removing equity from property: a litigious society, natural disasters, job loss, and more. Paying down your low interest rate debt won't create wealth. But using debt to create residual income streams can. More equity = more risk. Why would you even want to be debt-free? Resources mentioned: Show Notes: www.GetRichEducation.com/327 Mortgage Loans: RidgeLendingGroup.com EQRPs: text "EQRP" in ALL CAPS to 72000 or: eQRP.co By texting "EQRP" to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply "STOP" to cancel. New Construction Turnkey Property: CashFlowAndGrowth.com Best Financial Education: GetRichEducation.com Get our free "Don't Quit Your Daydream Letter": www.GetRichEducation.com/Letter Top Properties & Providers: GREturnkey.com Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold

The largest building you can buy with the best loan terms is a residential four-unit building. Noticing high fourplex demand years ago, one savvy developer has been successfully providing new build-to-rent fourplex communities in the U.S. Intermountain West. Get the report and connect with the provider at: www.getricheducation.com/fourplex These often have a price point of $750K or more, and require a 25% down payment. You're rewarded with Fannie / Freddie 30-year loans at low interest rates. High-growth Utah, Idaho, and Arizona markets are served with these new construction fourplexes. Learn how a developer selects land tracts at the edge of metro areas. I use what is considered a profane term in the industry. Resources mentioned: New Build-To-Rent Fourplexes: www.GetRichEducation.com/Fourplex Show Notes: www.GetRichEducation.com/326 Mortgage Loans: RidgeLendingGroup.com EQRPs: text "EQRP" in ALL CAPS to 72000 or: eQRP.co By texting "EQRP" to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply "STOP" to cancel. New Construction Turnkey Property: CashFlowAndGrowth.com Best Financial Education: GetRichEducation.com Get our free "Don't Quit Your Daydream Letter": www.GetRichEducation.com/Letter Top Properties & Providers: GREturnkey.com Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold

A summary of major housing and economic stories this year. Then, a framework for how you can achieve any goal is revealed. Our own Aundrea Newbern joins me. She describes her concrete goal of going from her current $10K up to $30K of monthly residual real estate income. Get our free "Don't Quit Your Daydream Letter" here: www.getricheducation.com/letter Resources mentioned: Show Notes: www.GetRichEducation.com/325 Mortgage Loans: RidgeLendingGroup.com EQRPs: text "EQRP" in ALL CAPS to 72000 or: eQRP.co By texting "EQRP" to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply "STOP" to cancel. New Construction Turnkey Property: CashFlowAndGrowth.com Best Financial Education: GetRichEducation.com Get our free "Don't Quit Your Daydream Letter": www.GetRichEducation.com/Letter Top Properties & Providers: GREturnkey.com Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold

Learn mistakes to avoid and how to buy a distressed property at a discount at a foreclosure auction. First, the average borrower now has $194K in home equity due to high recent home price appreciation. Only 3% have a negative equity position. Freddie Mac shows home prices up 9.7% year-over-year. First American's Real House Price Index accounts for home prices, interest rates, inflation, and affordability. The surprise? Real prices are down 26.8% since January 2000. Today's guest, Colin Murphy, is an acknowledged expert in buying properties at foreclosure auctions. He reveals how it works in some Florida counties. Death, divorce, drugs, and unemployment can all lead to a borrower missing mortgage payments and having their property fall into foreclosure. Foreclosure auctions have moved online in states like Florida (but not Texas). Often, you must give a 5% deposit at bid time, 95% balance paid same-day. 2 minutes of bidding per property. Learn how high one should bid on a foreclosure property. You can find mortgage, lien and permit information online. You must know how to estimate renovation costs. Assume the worst. Foreclosure moratoria have created low inventory levels in the market. Resources mentioned: More about Colin Murphy: ColinInvestments.com FATCO's Real House Price Index: https://www.firstam.com/economics/real-house-price-index/ Recent Homeowner Equity Gains: https://www.cnbc.com/2020/12/10/homeowners-gain-1-trillion-from-pandemic-driven-housing-boom.html Show Notes: www.GetRichEducation.com/324 Mortgage Loans: RidgeLendingGroup.com EQRPs: text "EQRP" in ALL CAPS to 72000 or: eQRP.co By texting "EQRP" to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply "STOP" to cancel. New Construction Turnkey Property: CashFlowAndGrowth.com Best Financial Education: GetRichEducation.com Get our free "Don't Quit Your Daydream Letter": www.GetRichEducation.com/Letter Top Properties & Providers: GREturnkey.com Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold

The deal is the debt. Why? Because mortgage rates are at all-time lows. People are buying property like crazy. Learn why 30-year fixed rate mortgages are a great deal for the borrower and a bad deal for the lender. Caeli Ridge, President of Ridge Lending Group, tells us about qualifying for income property loans today. Your first 10 loans single / 20 loans married for 1-4 unit properties have the best rates and terms: 20-25% down, 50% max. DTI, super low interest rates. For more loans, called "non-QM" loans: $135K minimum size, 75% LTV, higher interest rates. Opinion: Fannie & Freddie will stay in conservatorship, keeping mortgage rates low. Conforming loan limits will increase from $510,400 to $548,250 (SFH), and higher for 2-4 unit properties. Rate & term refinances - SFH: 80% LTV | 2-4 unit: 75% LTV Cash out refinance terms - SFH: 75% LTV | 2-4 unit: 70% LTV We get an update on appraisal climate. I educate you on the three appraisal approaches: cost, income, comparison. Ridge does loans in 43 of the 50 states, all except: AK, ME, ND, NY, VT, WV, WY. Resources mentioned: Mortgage Loans: RidgeLendingGroup.com Phone: (855)747-4343 E-mail: info@ridgelendingroup.com Show Notes: www.GetRichEducation.com/323 Top Properties & Providers: GREturnkey.com EQRPs: text "EQRP" in ALL CAPS to 72000 or: eQRP.co By texting "EQRP" to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply "STOP" to cancel. New Construction Turnkey Property: CashFlowAndGrowth.com Best Financial Education: GetRichEducation.com Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold