Get Rich Education

You'll struggle unnecessarily in life if you "maximize" conventional retirement plans. How can this be? Historically, rather than deferring your income into the future with a 401(k), 403(b), 457 Plan, TSP, IRA … … you could invest in a real, cash-flowing asset that improves your life BOTH now and later. I make a case that a "dollar per dollar" employer match in your 401(k) could be worth it. But only up to that level. Today's guest, Daniel Ameduri, author of "Don't Save For Retirement", discusses this with me. Future federal income tax rates will likely be higher. That's one risk of deferring your tax. The biggest risk of conventional retirement saving is that you sell your todays for tomorrows. Would deferring your compensation ever "pay off" for you? Children & money tips are also discussed. The top role of most financial advisors? To keep the naive person from losing all of their money. In retirement, many retirees pay their financial advisors 25% to 50% of what the retiree withdraws! I explain. Summary: Don't invest your income for savings; invest your income for more durable income. __________________ Resources mentioned: Future Money Trends: www.FutureMoneyTrends.com/save Mortgage Loans: RidgeLendingGroup.com QRPs: text "QRP" in ALL CAPS to 72000 or: TotalControlFinancial.com By texting "QRP" 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: NewConstructionTurnkey.com Find Properties: GREturnkey.com Best Financial Education: GetRichEducation.com Follow us on Instagram: @getricheducation

The next recession, and your next 3-10 economic years are predicted by our guest today. He is Brian Beaulieu, CEO of America's oldest privately-held continuously operated economic research and consulting firm, ITR Economics. Prediction: Interest rates should stay low through 2023. By 2025, they could rise 3% to 3.5%. Inflation should increase in the second half of the 2020s decade. Why? De-globalization. We discuss how long this longest-ever economic expansion will last. Declinism is people's predisposition to view the past favorably and fear the future. Brian tells us why the economy is likely to accelerate before it falls into decline. Millennials and Gen Zers are large generations. As they age, their affluence increases. Brian tells us that the widening gap between stock valuation and corporate profitability is concerning. I tell you the difference between fiscal policy and monetary policy, and why the 30-Year Fixed Rate Mortgage might be the most undervalued "asset" today. Of course, your economic future is based more on your individual decisions than the broader economy. If you want an economic forecast for your business or personal investing, visit: ITReconomics.com __________________ Resources mentioned: ITR Economics: https://itreconomics.com/itr-economics-podcasts Book: Prosperity In The Age Of Decline Mortgage Loans: RidgeLendingGroup.com QRPs: text "QRP" in ALL CAPS to 72000 or: TotalControlFinancial.com By texting "QRP" 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: NewConstructionTurnkey.com Find Properties: GREturnkey.com Best Financial Education: GetRichEducation.com Follow us on Instagram: @getricheducation

One of America's most underappreciated markets is right in the heart of cash flow country. Rent-to-price ratios are often 1%. Americans are moving from high-cost, high-tax places to low-cost, low-tax places. Look, the biggest mistake most real estate investors make is emphasizing "the deal" rather than "the market". You are making an investment into an area's underlying economy before the property. Follow the data, not the money. I discuss why health care employment is an important gauge of economic vibrancy. Learn why sellers prefer investor-buyers like you, not owner-occupant buyers. To buy cash-flowing properties in this underappreciated, "secret" market, start here at: www.GetRichEducation.com/Dayton __________________ Resources mentioned: Dayton Cash Flow Properties: GetRichEducation.com/Dayton Mortgage Loans: RidgeLendingGroup.com QRPs: text "QRP" in ALL CAPS to 72000 or: TotalControlFinancial.com By texting "QRP" 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: NewConstructionTurnkey.com Find Properties: GREturnkey.com Best Financial Education: GetRichEducation.com Follow us on Instagram: @getricheducation

Before you buy a property, I discuss something crucial that you're probably missing. Five of your listener questions are answered. (The entire episode's lyrics are in the Show Notes below!) 1 - How should I reward my child for their good school report card? 2 - How reliable is a real estate income stream? 3 - Are we in a housing bubble? 4 - Should you pay off $200K in student loans or invest? 5 - Should I get an inspection for a new construction property? "Packaged commodities investing" is a way to think of real estate. You have a buying opportunity for income property in Florida, Alabama, Indiana, Maryland, Tennessee, Arkansas and more all at www.GREturnkey.com. __________________ Resources mentioned: Inflation Lesson: Sears & Roebuck DIY Homes Mortgage Loans: RidgeLendingGroup.com QRPs: text "QRP" in ALL CAPS to 72000 or: TotalControlFinancial.com By texting "QRP" 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: NewConstructionTurnkey.com Find Properties: GREturnkey.com Best Financial Education: GetRichEducation.com Follow us on Instagram: @getricheducation Welcome to Get Rich Education. I'm your host, Keith Weinhold - answering your listener questions today. How do you reward your child for a good school Report Card? What about the long-term DURABILITY of a real estate income stream? Are we in a Housing Bubble? What should I do - pay off student loan debt - or invest? Should I get a Home Inspection? And what's the one thing you should do before you buy ANY property that you're probably not doing? All today - and more … on Get Rich Education. ___________________________ Welcome to GRE. I'm your host, Keith Weinhold. From Colombo, Sri Lanka to Columbia, South Carolina to Columbus, Ohio and across 188 nations worldwide. This is Get Rich Education. We're having my favorite guest on the show today. That guest is you! Because I'm here with your listener questions today! The first one concerns a kid's school report card and then the rest are about real estate investing. Rebecca from Los Angeles, California asks, Keith: What reward should I give to my 11-year-old son, Mason, for having a good report card at school - all As and Bs? I love your show, keep up the great work. Well, thanks, Rebecca. I love this question. Even though we're largely a real estate investing show, I think there can be so many lessons about life for your 11-year-old son, Mason here. The reward you can give them for their good report card is cash. Tell Mason that he's getting $100 - or maybe it's $40. But in any case, let's just stick with the $100 example. Divide it in half. Tell him that he's getting $50 in cash. And tell Mason that, as a bonus for later, another $50 is going to be invested for him. Over time, Mason will probably see that the invested $50 grew and the $50 that he spent on video games or whatever didn't. But see, he still gets rewarded with "short-term" fun. That way, it's not ALL delayed gratification. As you know, the abundance mentality isn't about either / ors, it's about "ands". This way, he can have his cake and eat it too. What good is cake if you can't eat it? Now, I didn't say that he had to SPEND the $50 cash part of this. $50 gets invested - and you'll have the fun of keeping Mason updated on his investment over time. He can do whatever he wants with the $50 cash part. And over time, if he sees the invested portion gained value, he might choose to actually invest some or all of the $50 cash reward too. But for now, let's be realistic - he wants to spend his $50 cash on Minecraft or Fortnite or the latest release of Grand Theft Auto. A video game like that. That's fine. You need to let him be rewarded now - because that might incentivize more near-term good school performance - which is what you value seeing in Mason. Thanks for the question, Rebecca. Now, before I move onto the next question. There's … I think … a real extrapolation here for you, the adult listener, with the way I recommended that Mason's report card could be rewarded. Really, there's a real estate investing lesson there. Mason gets rewarded both now & later. A employer-sponsored retirement plan punishes you now by reducing your salary and make you delay gratification. Real estate investing reduces your salary now - in way - when you make your down payment. But it begins returning that to you in the form of cash flow now - and gives you the asset appreciation for later. As you know, I'm not in love with the term "delayed gratification". Now, I do think there's a little something to be said for it. When I made my first-ever property that four-plex building where I lived in one unit and rented out the other three, I could have bought a nicer SFH. So I delayed some gratification there. I see some investors buy-in to "delayed gratification" so much that I wonder how long their postponing happiness and if they'll EVER find it. Sometimes, people get shocking reminders of this, but they soon forget it. I know this hits close to home for an Angelino like you, but you think about 41-year-old Kobe Bryant and his daughter Gianna being taken away from the world a few weeks ago. There are really all kinds of analogies for life here. Sometimes "later" becomes "never". Would you say that IF 11-year-old Mason spent half his report card reward - the cash half - if he spent it all on video games, would you say that he "blew that money" - that he "wasted that money". I don't know. What about you - the adult listener. Sometimes I hear people say that you should save all your moeny and not "blow it on a vacation" - as if you squandered money if you went on a vacation. I don't know that that's necessary true. Look, what is money for? What if you've wanted to travel to tour the beautiful Croatian coast or see glaciers in Greenland. How can a person say that you're necessarily "blowing your money" if you go out and to that. You're getting out and seeing the very world that you live in. You're living the life you've dreamed of. What would you want to do any less? Most people just don't have a vehicle - they don't know about a durable vehicle like real estate that pays them so many ways - both today & tomorrow. See, a lot of investment promoters WANT you to delay gratification. They oversell that stance. They're selfish. They want you to invest your money with them so they get the sale first and that they get the commission first and that they get the referral fee first. They've convinced you that paying yourself first … means investing with them first … so that you can accumulate dollars in an account with your name on it so that you can only then consume it in years or decades. Use your dollars in years or decades? That's not paying yourself first. How did that get to be paying yourself first? It's because that promoter of salesperson is only thinking of themselves first. There's something to be said for delayed gratification, yes. But delayed gratification should not be a permanent condition. When are you really going to start living the life you've always wanted? The year 2052? Or do you have a plan to compound your cash flows so that you can do that in three years. You know that that's the big reason - the #1 reason for me, in fact - that I don't care for conventional retirement plans. They only invest for later instead of both now & later like cash-flowing real assets do. Now, I don't think you're going to find it self-redeeming if you go broke trying to LOOK rich with ostentatious displays and classic CAR status symbols like the Lambo - unless that's sustainable for you. Then … that's great. So be gratified both now & later. Give Mason cash - half now, half turned into an investment that you make for him. And to 11-year-old Mason, if you listen to this now, I know you might want all $100 bucks right now. Most 11-year-olds would. If you listen to this in 2030 when you're age 21, you still might not understand. If you listen to this in 2040 when you're age 31, it'll probably all make sense. Thanks for the question about your son Mason, Rebecca. ------------------ The next question comes from Gerald in - Oxnard, CA - that's just up The 405 and 101 - west from L.A. where our last listener inquiry was from. I went through Oxnard on my last drive from L.A. to Santa Barbara. Gerald writes. "Keith, thanks for your show. Nobody anywhere makes real estate investing more clear. It's my favorite 40 minutes of the week." Now, see, with a comment like this, it really increases your chances that I'm going to read your question on-air here, Gerald from Calabasas. :o) He asks, you discuss the importance of multiple income streams. How PROVEN do you think that real estate income streams are long-term. How do I know it will still perform as an asset class for me in 30 years? Thanks for the question, Gerald. I know I've discussed elsewhere that people are going to keep needing a place to live, like they have for centuries or millennia now - and that inflation is the long-term trend and your long-term friend for a leveraged real estate investor. It's also what makes your cash flow rise faster than inflation since rents move up with inflation but your principal & interest cost doesn't - it stays fixed. So, I'm going to take this in a different direction, Gerald. You're asking about the durability of real estate an asset class and I think it's a good question. I recently had another listener write in to me about a concept that … I've thought about it before but I never heard it articulated in such an elegant way. And, I'm sorry that I don't remember this listener's name. But she referred to real estate investing as "Packaged commodities investing". I love the … ingenious thought of packaged commodities investing. When you buy a rental home, yes, you're buying the cost of the utility and the construction labor. But think about those materials in the home, those commodities - you now own brick, lumber, glass, copper wire, styrofoam insulation, granite, ceramic, paint, oil in the roof shingles, masonry, concrete, rebar, you own an HVAC system - every one of these individual commodity components are hedges against inflation. Gerald, a while ago, Reddit had a trending article over these Do-It-Yourself Houses that Sears used to sell over a hundred years ago. Look, this is fascinating - I've got this one-page ad in front of me - it looks like a newspaper ad. It's for Sears Roebuck and company from the year 1913. This ad - that's more than 100 years old - is interesting to any investor or economist - or marketer even. This ad is for - like a kit you can buy where you help construct the home. Let me read it to you. It says, "By allowing a fair price for labor, cement, brick and plaster, which we, Sears, do not furnish, this house can be built for about $1,530 - including all material and labor! Now, this looks like a small, single family home plan that Sears was offering you here, back in 1913. I can't quickly find the square footage on it - say it was 1,500 sf. So, you're buying this house over a hundred years ago, for say a dollar per square foot then. They show you the flooring layout plan. This is a livable-looking place, complete with a nice, wide porch. It's not a tiny home. Ha - this is so quaint! The Sears ad goes onto say, for $872 (which is more than half of your all-in cost of $1,500 that I just mentioned) - we will furnish ALL of the material to build this 6-Room bungalow … … consisting of mill work, siding, flooring, ceiling, finishing lumber, building paper, pipe, gutter, sash weights, hardware, painting material, lumber, lath, and shingles. NO EXTRAS - is in all caps. We guarantee enough material at this $872 price to build this house according to our plans. So that was $872 for the material - and then, remember, your all-in price with labor and everything else is the $1,530. This home, that's giving us some historical commodity and real estate PRICING perspective here - doesn't look like a piece of junk. Reading on - the large porch is sheltered by the projection of the upper story and supported with massive built-up square columns. A unique triple-window in the attic and fancy leaded art glass windows add much to this pleasing design. Ha! That's all I'll read from the ad. So … I think this is representative of this concept of "packaged commodities investing" that a listener introduced me to. It tells us a lot about monetary inflation, and at the same time - it speaks to the durability of residential real estate as an investment. This IS less sexy than the "five ways you're paid" stuff here. We're just looking at an element of durability here. When you have direct ownership of rental property, you simultaneously own all of these vital commodities. You own a basket of products. You'll see this Sears ad linked in the Show Notes. It's fascinating to see. And a lot of home construction here in the 2020s decade is still done largely the same way that it was decades ago. 3-D printed homes are not being adopted into the mainstream. Now, if they do, that could lower labor costs. You'd still need to add a lot of things to make a 3-D printed residence livable - components and penetrations and mechanicals and the - all those commodities we mentioned, plus, you've got the cost of the land. Decently-located land, is a commodity in itself - and IT'S of a limited supply. By the way, this is a learning show, and the first definition of the word "commodity" when I Google it, is: "A raw material or primary agricultural product that can be bought and sold, such as copper or coffee." That definition is from Oxford. Ha - they even have copper as the first example - and you expect to own copper with each home that you buy. I think yet another angle to your question, Gerald, about the durability of where your income stream comes from - is that we focus on RESIDENTIAL properties here. As the office and retail real estate sectors KEEP feeling pain - residential has become even more important at the same time - and you already know all the reasons - more people can work from home, order products from home, and do more from home than they ever have before. AirBnB properties might work in the short run, but we haven't yet seen what happens to them in a recession yet - and as we know, the short-term rental market cater to business travelers and vacationers - and durability is what you need your income stream to have. That's why, for durability reasons, I favor long-term residential investing above all else … and love to consider the elegance of this "packaged commodities investing". Thanks for the great question, Gerald from Oxnard, CA. ---------- The next question comes from Andrew in Ridgefield, Connecticut. Keith, I have been listening to your podcast for a while. Your mindset resonates with mine. I am a small animal Veterinarian, I own - and run - my own small animal hospital. On the investment side...….I have a balanced Wall street portfolio (Stock, Bond, Mutual Funds). On the Real estate side I have a $280 cash flowing SFR, and am involved in some multifamily Syndications. I wrestle with Buying more SFR properties vs. more syndications. I feel that since money is so cheap in today's economic climate there is not much room for appreciation when buying RE. Should I sit on the sidelines and wait? (wait for Blood in the Streets?) I like the Tampa area...but go back and forth with my thought process. I look forward to hearing from you. Signed, Andrew (his last name), DVM - DVM is Doctor Of Veterinary Medicine, BTW Yeah, it is interesting that I've noticed a good deal of doctors & dentists listen to Get Rich Education. But I doubt that it's #1. Anecdotally, I've noticed that for some reason, we seem to have a really high proportion of listeners that are in LAW enforcement - like police officers & such. Thanks for the question, Andrew, veterinarian from Connecticut. On the first part of your question, buying more SFR vs. real estate syndications - that has a lot to do with both your risk tolerance and your desire for passivity. Direct investing, like turnkey investing, does require a little remote administration - even when you're not the property manager, but you've typically got higher returns and you've got control - versus a syndication. In many cases, direct investing and that great control actually means you're more liquid with your funds. You could sell in a few months if you had to … and with syndications, if you're in Year 2 of an apartment syndication where it's 7 years until that deal matures … then good luck getting your money out. You can't access it. So, those are some more of the trade-offs between direct investing & syndications. Ah, I know you wrote that money is still cheap - meaning that interest rates are low and that you think that might be an indicator that appreciation has run its course. Well, I'm still buying direct property, where I own the deed. See, interest rates have basically been low for over a decade and we've had appreciation the entire time. Let's look more recently. In 2018, interest rates really began a march higher and there were some people predicting that it would make housing prices go down. It didn't. In 2018, national appreciation rates were about 7%. In 2019, mortgage interest rates went lower and appreciation went lower, down to about a 5% annual gain. Now, yes, there's a lag effect between mortgage interest rates and pricing too. But mortgage interest rates are one of - at least 10 different macro factors that effect the price of housing, so one doesn't lead to the others. There might be more substantial factors skewing the numbers than interest rates affect housing prices. Housing prices can be more affected by things like chronically low supply like we've got today, wage growth, job growth, in-migration, birth rates, death rates - and did lending requirements get more stringer or more lax - did credit score requirements get more stringent or more lax and on and on. But you do ask a good question, Andrew. Ah - if I didn't think it were good, I wouldn't be answering it here. Now, I know that you didn't bring up the word bubble. But a few weeks ago, I described why I don't think we're in a real estate bubble. Prices are sustainable for a lot of reasons. But on the flip side, I don't see any scenario in which real estate, nationally, hits any high-flying annual appreciation rates of 10 or 12% anytime soon - like we saw back in 2005 either. Low supply can only push prices so high. Affordability is the component that governs and tempers the upward price escalation. Affordability is what's moderating the rate of appreciation rate right now. Of course, whenever we talk about the future, no one REALLY knows what's going to happen. These are just my thoughts - and the basis and the reasoning for why I have them. You mention that you like Tampa - I do too. I really like so much of Florida - of course, you have to get your submarket right. And I need to say that's generally Florida north of Miami - because the numbers don't work so well in south Florida. Around Miami, you just don't get a higher rent income proportionally to the much higher purchase prices there. Think about this! When you look at net migration by state for this past year, Texas was 2nd in the U.S., and they had a net in-migration of 190,000 people. Florida, even though they have a smaller population than Texas, is #1 with 322,000 people. Yeah, net 322,000 moving into a smaller state - Florida. And 190,000 into a larger population state - Texas. Florida has rent-to-value ratios that are favorable. And as an investor, your property tax rate is substantially lower in Florida than it is in Texas too. There are a lot of reasons to like Tampa and Florida. Of course, that's why we had our real estate field trip there last October in Tampa … as well. Thanks for the question, Andrew! If you want to hear your voice on the show, ask your question at GetRichEducation.com/Contact I realized that on earlier listener question episodes, I had only left you with our mail address so that's why I have mostly e-mail questions today and only one voicemail question. I'd really prefer to hear your voice on the show. So by visiting GetRichEducation.com/Contact, that way, you'll have the option of either leaving a voicemail or an e-mail, whatever you prefer there. Two more listener questions today. What should you do first, pay off your student loan debt or invest … … and I need to tell you why you should always get a property inspection before you buy a property - and do one other crucial thing - before you buy property - that you may not have ever thought about before. That's next. You're listening to Get Rich Education. ---------- Hey, you're back inside Get Rich Education. I'm your host, Keith Weinhold, answering your listener questions today. The next question comes from Dillon in Nebraska - I'm not sure which Nebraska place he's from. Let's play the audio: https://www.speakpipe.com/msg/p/120531/30/p15zsoamb252hyob35bvfc8d6uwrqv3ml1yh3h1suwgf6 Yeah, thanks, Dillon. And I do consider student loan debt as bad debt because YOU have to pay it back yourself … … that is, you can't directly outsource those payments to someone else, like tenants in a rental property where they pay all your mortgage loan interest, all your mortgage loan principal, and hopefully, another couple hundred dollars on top of that called cash flow. Not to mention, Congress passed an act in 2005 which made student loans quite difficult to discharge in bankruptcy. With your question, being basically, "Should I pay off $200K in student loan debt as quickly as possible before starting real estate investing?" Well, the answer ... as it often is, is "It depends." But I'll tell ya what it depends on. The short answer is - if your real estate cash-on-cash return could beat the interest rate on your student loan debt - only then would you invest in real estate and make the minimum student loan debt payment. Now, that was really good insight on the inflation-hedging or even inflation-profiting that long-term debt can provide you. I can tell that you're a careful listener to the show, Dillon. Of course, that's just one tailwind. Just one consideration. And the reason why inflation-profiting is lower in priority than your cash-on-cash return is that you need liquidity. You need cash to service your student loan debt. I don't know what your student loan debt INTEREST RATE is. But let's just say you're paying a 6% interest rate on that debt. Now, I understand that it's really easy to look at all 5 ways that real estate pays you and think - aw, I can get 20, 30, 40, maybe even a 50% ROI when I buy right. So I'm just gonna pay the minimum on the student loan debt and plow all the extra into real estate. I would say, not so fast. Even though that might work out for you, we need to be more conservative … … because real estate appreciation isn't liquid, tenant-made loan amortization isn't liquid, and neither are real estate's tax benefits or the aforementioned inflation-profiting. So, to use the simplest example, if your rental gives you $100 of monthly cash flow, which is $1,200 annually - and you've got $20K of skin-in-the-game on your rental as down payment and closing costs. Well, that $1,200 annual cash flow divided by your $20K down is 6%. That's your Cash-On-Cash Return portion and if you can get THAT at 6% or above, then reduce your student loan paydown dollar-for-dollar for every dollar that you put into real estate. That's really the upshot here. Yes, there are some smaller things to consider. Last time I checked, student loan interest in the United States is a tax deduction up to $2,500 annually. So, your 6% interest rate might effectively be 5, 5-and-a-half or whatever it is. Understand the risk. You don't want to be left cash poor. Your TOTAL Rate Of Return on real estate will almost certainly beat your student loan interest rate. But that's not enough. Let's be conservative. To summarize, because you service your loan debt with cash, not equity, the key question you must ask yourself is: "Am I confident that my cash-on-cash return from real estate will exceed the interest rate on the student loan debt?" If your answer to this key question is "yes" - invest in real estate and stretch out the student loan and only pay the minimum on the student loan. Otherwise, you're walking away from an arbitrage opportunity. If it's "no", retire the student loan debt balance sooner. Otherwise, then you're hemorrhaging cash. What did I personally do? After college, I retired my student loan debt fairly promptly. But this was before I knew about REI. I still thought budgets were good and that the best way to financial betterment was cutting expenses and all the wrong stuff. That was an awesome question, Dillon in Nebraska. Because I know that so many people have that question - how do I best allocate a dollar toward debt retirement versus expanding my upside. ---------- The next question is from Monique in Quebec City, Quebec. Monique says, Keith, I love your show. I've listened to every new episode since 2018, and now I'm also going back and listening to them from the beginning. Thanks, Monique. I'm grateful for your listenership. Monique goes on to say, "I've bought four cash-flowing properties from the providers at GREturnkey.com. (Good job there, Monique) They were all EXISTING construction properties. Though I expect the cash flow to be less on my fifth one, because it's going to be a brand new construction property." Is the HOME INSPECTION a required expense for me when the property is completely new? Thanks for all your help. Signed, Monique. Monique, the answer is "yes", you should. Always have a pre-purchase inspection done, even for new construction property. Sometimes people think of a NEW CONSTRUCTION property as "perfect". Well, I don't think of any property as "perfect". But an example of a mistake made in a new construction property is that, maybe the air conditioner is too small and doesn't have the capacity to cool all, 1,800 sf of the home or whatever it is. Maybe some new flooring wasn't installed correctly and it's showing signs of de-lamination. An inspection provided by a local, independent, third-party inspector is a cheap insurance policy for you, the buyer and you need to factor it in as one of your closing and due diligence costs. Now, an inspection on a SFR, is probably going to cost you somewhere in the neighborhood of $400 - of course that'll vary based on the area. You have the inspection performed shortly AFTER you & the provider agree on a purchase and sale contract. The reason that you want to get the inspection scheduled shortly after you're under contract is because sometimes it can take a while - weeks - for your provider's contractor to fix the deficiencies that your inspector finds. Now, how do you find an inspector for your property, anyway? There are a few ways of going about it. You can ask your provider to recommend one. If you're leery of that or think that your provider might be in "cahoots" somehow with the inspector, you can Google your own, or thirdly, get an opinion from friends or if you don't have friends that have invested there before, then use an online real estate forum. Seek an inspector that's ASHI-certified. A-S-H-I stands for American Society Of Home Inspectors. Those certificants are educated, tested, verified, and certified. The inspections that they do are really quite thorough. They go everywhere in the home you're planning to purchase, even looking in the closets and pantries, making sure all the doors & windows open & close. If there's a crawl space, they'll climb down into the crawl space looking for deficiencies, taking notes, and taking photos that they compile in a report and send to you. Before you buy the property, the inspector might even go up on the roof - or at least zoom in and take some photos of the roof. And of course, they go all through the home and check everything in between. They do the entire inspection same-day. It takes a couple of hours. Some common findings that your property inspector might have are: The outdoor rainwater downspout discharges water at the foundation. Add extensions. That's a super cheap, easy fix for your seller to do for you. The kitchen window doesn't close all the way because it has a broken crank. The exhaust fan in the bathroom doesn't have any power and it's not pulling any air. The outdoor water spigot is missing its valve. The backdoor is bent at the bottom. A porch this high off the ground needs to have a railing added. So, Monique, as you can see, some of these are deficiencies that could occur in a new construction home. Now, let me touch on a couple of these. The backdoor is bent - that could be pretty minor. If you don't think it's aesthetically detracting and the door still closes - then maybe you do ask the provider to fix it - and maybe you don't. If I were you, I'd usually just ask. But if there's a minor dent in the door instead, and it functions well, then asking for something like replacing the entire door might make you appear unreasonable to deal with. There's some judgment there. But if the backdoor won't close, you've at least got to see that it closes and latches properly. The last example that I mentioned - if the inspector cites a finding that a porch this high off the ground needs to have a railing for safety, you've got to be sure that's done. In fact, a reputable provider will be sure that's done for you. This is part of you being a good operator. Remember how I've discussed that having an LLC is only your fourth line of protection, at best. Make sure any health or safety findings are addressed from the inspection. Do that good in the world. If an accident ever did occur at the property - you can always point to the inspection that you had done - and it was an option that you paid for. The inspection is an option. So, these are all the findings that the inspector reports to you - and he'll send you a report of a few dozen pages in a .pdf format. Some things might be noted in the report, but the inspector won't list them as deficiencies that NEED to be remedied - like small cracks in the sidewalk. Often, in the report, the inspector makes a clear delineation as to when a condition is poor enough … such that it falls to a deficient level - and he puts them all in one punchlist at the end of the report. That way, you're not having to split hairs and do too much interpretation. You look the report over, and then you ask the provider to fix them for you before you'll close on the property. The provider might take, say a week or so to have their contractor fix those punchlisted items. When they've finished them, then you're on your way to having your appraisal and moving closer to the closing table. But, I've got to tell you something kind of disappointing here. I've been directly investing in real estate actively and continuously since 2002 - and I've got to tell you … … many times, even when the contractor says that they've completed fixing everything - even when they send you pictures … something really wasn't quite fixed right. So what I suggest, is that - existing construction or new construction - when you hire your inspector, tell him right then & there, that you are also going to want a follow-up re-inspection that occurs after the initial inspection. The purpose of a re-inspection is confirming that all of the deficienies noted in the original inspection were indeed done. And by the way, there will ALWAYS be original inspection findings. An inspector will always find at least one deficiency and I've dealt with properties from Pennsylvania to Florida to Alaska to Texas and in-between - and outside the U.S. too. Inspectors always find stuff that's wrong. Always. It's like a universal law. But, getting back to re-inspections. Upon scheduling your original home inspection, if you point out AT THAT TIME that you'll also be getting a re-inspection - tell both the inspector & the seller this, I tend to think it helps keep parties on their toes and that they try harder to get the original inspection findings handled - the first time. And look, re-inspections are super cheap. If a SFR ORIGINAL INSPECTION costs $400, a re-inspection is going to be less than $100. I've even paid $50, $60 in some markets for the re-inspection. It's hard to believe that you can even get a trained, qualified professional to make a field visit somewhere that inexpensively. Now - and I have this happen too - what if after your RE-inspection - which would really be a second inspection, that the provider or their contractor STILL didn't get things repaired properly? Then the responsibility shifts to your seller - to schedule and pay for a second RE-inspection - which would be a THIRD inspection then - to prove that it's right. That's correct, in every state and nation I've ever invested in, the seller-side pays for your second re-inspection … if it comes to that. That's fair. Because after the original inspection findings, your seller said they'd make the repairs. If the re-inspection that you paid for to confirm that it was done, instead shows that it wasn't done. Your seller had their chance and messed it up. That's why it's customary that they pay for the SECOND re-inspection. So, Monique, to summarize for you here. Always pay for a property inspection, even on new construction. Expect there to be findings every time. And my own personal experience shows that at the time that you book an inspection, it helps to indicate that you'll be getting a RE-inspection too. Now, getting a re-inspection makes so much more sense than getting a re-appraisal - if you get a low appraisal, which doesn't happen often, maybe I'll discuss that another day. Re-appraisals are a waste of time … more than 95% of the time, they just come back with the same valuation you got the first time. An appraisal protects the bank. An Inspection protects you - so be sure to have one done. Excellent question, Monique from Quebec City, Canada. Next week on the show, I'm going to discuss Real Estate's Secret Market - a geography where the numbers really work for investors that might have been off your radar. After that, we're going to talk with a prominent economist that's never been on the show before that's going to help you see your economic future over the next 1-3 years. We've hosted a lot of economists here on the show that give you those long-term investing insights like Richard Duncan, Harry Dent, Jim Rickards, Jim Rogers - and also, though they might not be economists, Robert Kiyosaki and Chris Martenson are here with us to give us those types of insights. Then there's "Yours Truly" - I'm your armchair economist without an economics degree. But this new guest is the leader of the oldest continuously operating economics prediction company in the entire United States, so I'm excited to chat with him and bring you that show soon. As you know, nationally, housing inventory is scarce, especially with these types of single-family homes that make the best rentals. You can't make any money from the property that you don't own. So whether you prefer to call it "packaged commodities investing" or the "get paid up to 5 Ways" vehicle, next time you're looking to connect with a provider at GREturnkey.com … As we spoke of Florida earlier, you'll see that Jacksonville has brand new construction property, where you're probably more of a fan of appreciation than cash flow on those. Rents are $1,350 on a $180K purchase price. That's a 0.75 rent-to-value ratio. Tampa has existing construction property where you have a 0.8 or .85 ratio and might get, say $150 of monthly cash flow. Alabama has numbers that work - like rent-to-value ratios near a full 1% and really low property taxes in either Birmingham or Huntsville. If you're looking for low cost property - as low as $80K in decent neighborhoods that really cash flow well, Memphis and Little Rock could be the places for you. The Indiana State side of Chicagoland is advantageous too. All those places - Memphis, Little Rock, Chicagoland - you can get a full 1% RV ratio or even more than that sometimes. If you've got more patience and want to benefit and capture some forced equity along with your cash flow, the BRRRR model in Baltimore could work best for you. Check out all of those markets and more - at GREturnkey.com Thanks! I'm grateful for all of your excellent listener questions today! I'm your host, Keith Weinhold. Don't Quit Your Daydream! -------------

Donald Trump's re-election could end Fannie Mae and Freddie Mac conservatorship of mortgage loans. This could mean that fixed rate mortgage loans disappear! It could also lead to higher mortgage interest rates and more changes. Ridge Lending Group President Caeli Ridge and I discuss why. We compare Fixed vs. Adjustable Rate Mortgages (ARMs). Your personal DTI - debt-to-income ratio - is thoroughly discussed in qualifying for rental property loans. I made my last two mortgage loans personally at www.RidgeLendingGroup.com __________________ Resources mentioned: Mortgage Loans: RidgeLendingGroup.com QRPs: text "QRP" in ALL CAPS to 72000 or: TotalControlFinancial.com By texting "QRP" 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: NewConstructionTurnkey.com Find Properties: GREturnkey.com Best Financial Education: GetRichEducation.com Follow us on Instagram: @getricheducation

You're affected by interest rates and inflation as both a consumer and real estate investor. A 50% return is not necessarily risky: I review the 5 Ways Real Estate Pays You and pass it through a new filter. Dr. Chris Martenson joins us to discuss how The Fed manipulates monetary policy and interest rates by running up staggering debt levels. To solve our problems, can we just keep printing money and paving over the world with dollars? Interest rates are artificially low. Why you're in a Fed-induced bubble. Chris tells us why Fed Chair Jerome Powell is a liar. When the credit cycle bursts, everyday people will be harmed. Chris thinks the next crisis will be twice as bad 2008. Solutions: have multiple income streams, cash, and real assets. Join Chris and PeakProsperity.com for their annual seminar May 1st to 3rd, 2020 in Sebastopol, CA. For the best event pricing, use Discount Code: GRE2020 __________________ Resources mentioned: Find Properties: GREturnkey.com Meet Dr. Martenson & his tribe: 2020 Peak Prosperity Seminar QRPs: text "QRP" in ALL CAPS to 72000 or: TotalControlFinancial.com By texting "QRP" to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply "STOP" to cancel. Mortgage Loans: RidgeLendingGroup.com New Construction Turnkey Property: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Follow us on Instagram: @getricheducation

You only need to be 1% better ... to go from good to great. This is due to accumulative advantage, which is the engine that drives "The Pareto Principle" (80 / 20 rule). Lessons from nature extrapolated to business and real estate investing provide cues on how you can grow your wealth faster. Damion Lupo tells us about important new changes that make the eQRP - Enhanced Qualified Retirement Plan - even more beneficial to you. To learn more, text "QRP" in ALL CAPS to "72000". With the eQRP, you pay no UBIT tax on leveraged real estate. Self-Directed IRAs sting you this way. eQRPs can provide tax credits of $15,000 for starting a plan, and a tax deduction on your income by paying your kids. Open your eQRP before you file your taxes, and you can make the benefits retroactive. To learn more, text "QRP" in ALL CAPS to "72000". __________________ Resources mentioned: Text "QRP" in ALL CAPS to 72000 or: TotalControlFinancial.com By texting "QRP" to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply "STOP" to cancel. Book: The Slight Edge by Jeff Olson Pareto Principle: Business Insider article Mortgage Loans: RidgeLendingGroup.com New Construction Turnkey Property: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation

Even a dollar-per-dollar match from your employer might not make 401(k) participation worthwhile. "Timing" could be the most underrated word in investing. Retirement plans only pay you when you're old. 401(k)s rob you of the opportunity to fully live life while you're young enough to enjoy it. 401(k)s used to be named "Salary Reduction Plans". They had to get rid of the name to foster participation! Instead, opt-in for your "Salary Increase Plan" with cash-flowing real assets. Tom Wheelwright joins us, and we hear the voice of 401(k) inventor Ted Benna from GRE Episode 197. In fact, 401(k)s incur tax rates double than if you had simply invested outside of the plan. If you're young & building wealth, specialize. If you're old & maintaining wealth, diversify. Tom & I go deep on how you can qualify for the coveted Real Estate Professional tax designation while you still have a day job. You don't need to be a real estate agent to be an RE Pro, but it helps. Marriage can help. __________________ Resources mentioned: Tom Wheelwright: Wealthability.com Ted Benna & I's full chat: GetRichEducation.com/197 Mortgage Loans: RidgeLendingGroup.com eQRP: Text "QRP" to 72000 or: TotalControlFinancial.com By texting "QRP" 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: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation

Most people sell their time for dollars. Were you really meant to do what you're doing right now? Mark Twain said, "Why not go out on a limb? That's where the fruit is." Culture conditions most people to live an average, stale life. Don't trade away your authenticity for approval. In over 6,000 years of human history, being a conformer is not a success recipe. 40 rental doors x $150 cash flow = $6,000 per month. This buys you time. Don't fear failure; fear not trying. Powerful assignment: write your own obituary. No one achieves anything extraordinary by playing it safe. People that say, "I want to live frugally." actually want to say, "I want to live well." But they don't know how. Get residual real estate income at: www.GREturnkey.com I update you on asset class prices over the past year. Americans paid $4.5T in rent this past decade. The median homebuyer age is up to 47. Corelogic expects a 5.4% housing price jump in 2020. Housing shortages should continue at the low end of the market. Nearly every news outlet reports a stable housing environment. Why? Demand exceeds supply, appreciation rates are sustainable, stringent loan requirements, inflation-adjusted home prices are often still below 2005 levels. **The entire episode's lyrics are at the bottom.** __________________ Resources mentioned: Turnkey income properties: GREturnkey.com Americans Paid $4.5T Rent Last Decade: Zillow article Median Age Of Homebuyers Up To 47: HousingWire article Fannie Boosts 2020 Housing Forecast: CNBC article Lenders, Builders More Conservative: CNBC article Home Prices To Rise In 2020: Yahoo Finance article Homes Under $250K Near Extinction: HousingWire article Mortgage Loans: RidgeLendingGroup.com eQRP: Text "QRP" to 72000 or: TotalControlFinancial.com By texting "QRP" to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply "STOP" to cancel. JWB New Construction Turnkey: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation Welcome to Get Rich Education, I'm your host, Keith Weinhold. Mark Twain said,"Why not go out on a limb? That's where the fruit is!" I tell you how YOU can go out on that limb to get that fruit - that prosperity in your life. And, and update on markets and housing here in the new decade. Today, on Get Rich Education. Welcome to Get Rich Education, I'm your host, Keith Weinhold. This is Episode 275 ... and you know something? It has always fascinated me that people will trade time for dollars. You have traded your time for dollars … and I have sold my time for money in the past, as well. Yeah, amazes me that people will work, often doing something that they don't EVEN LIKE - and spend that time away from their family or for things that they don't enjoy doing … just for money. It's actually even worse than that. The long-term plan - the OUTCOME for this sacrifice - isn't even satisfying. It's for you to retire old, and THEN only begin to really live … maybe. Well, ironically, the answer to your potential freedom is something that you actually slept inside last night - a piece of real estate. But you need to invest in real estate in a strategic way. You don't need to be a landlord and you don't need to know how to fix things - but few know the way. Here on this show, I simply tell you the things that I would have wanted to know before I started down this road to freedom back in 2002, which is when I bought that seminal four-plex building. You are where you are today because of you. Your life isn't a fluke and it isn't an accident either. You are where you are because of your choices. Well, let me ask you - were you meant to be doing what you're doing now? Were you put on this earth to do … that? You probably know definitively without me even having to get specific - you already know - yes or no - if you were MEANT to be doing what you do for money now. See, the #1 limiting reason that people give for why they can't do something that they really want to do in their life … is … money. So, time vs. Money is something that we discuss a lot on the show. It's something that's infinitely interesting to me … and what you need to do is "Go Out On A Limb". I'm going to discuss that with you a lot more later today. But first, since we're a few weeks into this new decade, let's talk about some more broad and contemporaneous news items - this investor environment that you live inside every day. Whipping around the asset classes like we do from here time-to-time here - in the year that was, last year, what really happened? S&P 500 was up nearly 29% - it's best performance in years. Of course, it's volatile. In fact, it was just DOWN 6% the previous year. Year-over-year, many commodities were up. Gold was up 18%, Silver up 15%. Oil - Light Sweet Crude - was up 22%. Recession fears peaked back in September - four months ago. Columnists and economists and everyday people don't really talk about recession as much as they did late last year. Last year, the 10-year Treasury Note yield fell seven-tenths of one percent down to 1.9%. Now, why do you care about what you'll hear people just shorten and call "the 10-Year T-Note?" Economists say it that way with their slang. That is because it's the rate most closely tied to long-term mortgage interest rates. I just told you that the note yield fell SEVEN-TENTHS of one percent last year. Well, see, the most popular mortgage in America, the fell EIGHT-TENTHS of one percent last year down to 3.7%. That's the 30-year loan. So, pretty closely correlated. And of course, that's the mortgage interest rate for primary residences. For investment property, it's often nearly one percent higher. Last year, the Freddie Mac House Price Index was up 3.6%. I like to look at the Freddie Mac Index because it includes pricing for all 50 states and Washington, D.C. The Case-Shiller Housing Price Index only measures 10 to 20 large cities. One news story that we experienced in the past year is one that almost no one talks about. Now, you generally want there to be higher wages out there. That means your tenants can afford to pay you more rent. Higher wages mean higher inflation which means higher asset prices and also, faster debasement of debt that you owe. Now, whether you agree that there should be a minimum wage or not ... The minimum wage keeps getting higher across the country. More than 20 states are bumping up pay for minimum wage workers this year, here in 2020, while Seattle's large employers will now pay a nationwide-high of at least $16.39/hr to employees. Meanwhile, the FEDERAL minimum wage has remained parked at $7.25. But these higher state wages - are a positive for real estate investors. Now, I've aggregated a number of news stories that matter to you - all that have published over the past few weeks. Just about everything is positive for a stable housing environment. Zillow report an astonishing figure. Over the last decade, do you have any idea how much Americans paid in rent - in total? Americans paid $4.5 TRILLION - with a "T" - dollars in rent in the last decade - the decade that just ended a couple weeks ago - the 2010s. Well, that's a gigantic number. It's so giant, that it's more of a fun figure to contemplate and hard to put it into context. What CAN you compare this to? Well, this is greater than the GDP of Germany - which is the world's 4th-largest economy. Yes, it's been a rather lucrative decade for landlords - partly due to the fact that the homeownership rate fell through the decade and - consequently - there are more renters now. So, yes, you only need a small slice of this $4.5T dollar pie to win a substantial degree of financial freedom yourself. Housing Wire has reported on what the median age of a homebuyer is in America today. Do you have any idea what that age is? Well, I'll tell you, to give you some context here, that in 1981, the year that Ronald Reagan first became President, the median age of a homebuyer then was … 31. Age 31 back in 1981. The median age of a homebuyer today is … higher than that. Just dramatically higher. Almost unbelievably higher … it is age 47. 47! So … how did this happen? There are VARIOUS reasons for this delay, including a dramatic increase in student loan debt - like we've discussed before - and a general shifting of attitudes towards the traditional homebuyer cycle. People are waiting longer to marry, have kids, and buy houses. Household formation is postponed now. These are some things that you've already realized. But you may be surprised to learn that the RESULT of this is now a 47-year-old median age homebuyer. That's like … old enough to be a grandparent perhaps. Just remarkable - and again, great news if you're renting property to others. People are renting longer - or just renting forever. Now understand something else - and look, you can't discriminate against a tenant based on age or for any other reason. But just think about what else this means - there's a renter pool today with more, say, 35 and 40-year-olds in it than there used to be … … and therefore, a smaller proportion of 25-year-olds. You have this aging of tenants … and older tenants tend to live more quietly in your property and be more gentle on your housing unit. Long-term demographic trends exactly like these are why we talk about what we talk about here - how everyday, busy people and working professionals can create residual income with these investment properties. CoreLogic expects a 5.4% home price jump in 2020. Yes, this would be a greater appreciation rate than that 3.6% we saw last year. Fannie Mae has significantly boosted ITS 2020 housing forecast. Overall housing DEMAND, they say, is incredibly high, especially at the lower end of the market, which is exactly the end of the market where builders are least active. Prices are rising fastest on the low end, sidelining some first-time buyers. Fannie Mae's Chief Economist Doug Duncan says: "Housing appears poised to take a leading role in real GDP growth over the forecast horizon for the first time in years, further bolstering our modest-but-solid growth forecasts through 2021." Now, CNBC recently reported that: U.S. homebuilders and lenders are to blame for the country's housing shortage, Marcus & Millichap CEO Hessam Nadji said. Home construction companies have reduced speculation and lowered risk-taking in an effort to prevent "the lessons — if you will, the hard lessons — learned in the 2008-2009 Housing Crisis & Great Recession - from happening again," is what he said. "All of that is frustrating from a consumer perspective, but it's actually very healthy from an investment and economic perspective for the U.S. as a whole," he said. Yahoo Finance - really all these news outlets are reporting various sources that home prices are expected to rise modestly and that housing shortages are expected to continue. Rather than reporting on another similar story about this … I've been saying for years on this show that if you're waiting for housing prices to drop substantially … well, anything is possible. But I don't see what could possibly make that happen. And that's primarily due to three or four reasons that housing stays firm: The #1 reason - the chief one is that housing demand exceeds supply. That's just basic economics. And the housing crash of … now 13 years ago ... was due to the opposite condition. Back then, there was overbuilding - back then supply exceeded demand. The second of three reasons is that appreciation rates ARE sustainable: Less than 4% per annum lately. Leading up to the housing crash, they were TEN TIMES that in some markets - totally unsustainable. The third reason that supports housing is that lending practices are responsible. To get a loan, you DO need to supply a somewhat-annoyingly high amount of documentation. You need to have income, reserves, and some decent credit. That didn't happen in the Great Recession buildup either - ANYONE qualified - and then that ARTIFICIAL demand helped push up home prices unsustainably. Really a fourth reason - or a bonus - is that once you adjust for inflation - which so many people and even reporting outlets forget to do - many housing markets still haven't even reached their pre-recession peak from way back in 2005. So, these 4 reasons to be bullish about housing are all MY takes. Links to all of the articles that I cited are in the show notes. Next week, Tom Wheelwright returns to the show with me. Yes, it's the long-awaited show where it'll be Weinhold and Wheelwright on 401(k)s and going deep on how you can obtain the desired "RE Professional Designation" and the GREAT tax advantages that that gives you. Are 401(k)s worth contributing to - even if you get an employer match? We'll take that one head-on next week. And I think you're going to get some really surprising answers. During the holidays a while back, we had all FRESH shows. San Diego-based Get Rich Education listener Andrew Stanton - and his layoff story reminded us of the importance of having multiple income streams. Should you - as they say "Rent out your backyard" with an ADU - accessory or auxiliary dwelling unit. Well, in places like California where they're popular ... Why don't you instead enjoy your backyard and invest in markets in the Midwest & South where the numbers make better sense anyway. Two weeks ago, CFP Brent Sutherland & I discussed why conventional financial advisors don't discuss RE with you. Last week, we had the "hands-on" perspective with Kevin Cross, asking, "Should you self-manage your rental property and your tenants?" For him, the answer is "yes" - with some help - and that's fine. For me, the answer is "no". I want control without having day-to-day responsibility. Let's do good in the world and provide people with clean, safe, affordable, functional housing. But I make sure my manager does that. I want to directly invest in real estate, with property titled in my own name - that way I get paid up to 5 different ways. But, I don't want it - I'll say in my grip - as in - I don't want to hold real estate right in my hand - otherwise it's on my plate & on the front burner. But I do want it within my arm's reach so that I have CONTROL, and yet a FAIR measure of passivity. If you want more out of your life, you've got to go out on a limb. I'm going to talk about that with you today … next … I'm Keith Weinhold. This is Get Rich Education. ________________________ Welcome back to Get Rich Education. I'm your host, Keith Weinhold. When it comes to your day job ... or how you spend most of your waking day, were you meant to be doing what you're doing now? I think that a lot of people get culturally conditioned that you have one path that you just MUST take throughout life, and if you deviate from it too much, that's bad … because now you're a non-conformer. Yes, one path. This narrative through the Industrial Revolution that you should go to school, get this amount of formal education, this amount of college debt, a good job, work for one company, marriage, kids, buy a big house … … get a new car every 5 years, just 2 or 3 weeks of vacation per year (my goodness - are you kidding me?), work for 40 years, then retire & play golf … or something like that. That's what's supposed to quote-unquote "guarantee" the masses happiness, fulfillment, and meaning. But it often doesn't. So why settle for what the masses do? People are willing to trade away their authenticity for approval. Rather than being authentic, they instead settle for society's stamp of approval. Don't trade away your authenticity for approval. Parents, community, friends - they all taught you - here's the one way you have to live. Why don't you, instead, custom design your best life. What does success look like to you? Is success being a doctor, lawyer, dentist. If you drive "this" nice of a car, or if you live in this neighborhood, or this nice of a house, if your kids go to this school. Instead, your definition of success may very well be - are you doing the things that you dreamed about? Are you impacting others in a meaningful way? You can either live a life of safety or a life of creativity. Go out on a limb - where that tree branch might yield a little, 30 feet above the ground, scaring you. Go out on a limb … because that's where the fruit is. Understand that the consequence might be that fewer people will PERCEIVE you as a success. How you make your money is more important than how much money you make. We're "Get Rich Education - and "Get Rich" means living a rich life - whatever that means to you. When you're young & people ask you "What do you want to be?" when you grow up, they're not REALLY asking what you want to be at all. They're asking, "What do you want to do professionally, to earn money?" It feels risky to say what you REALLY want to be. It feels risky to use an online platform to try to crowdfund your kitchen device invention. You're afraid you'll be seen as a failure when you share that on Facebook and get ridiculed from your friends. That's going out on a limb. Trying to get your workout app featured on Shark Tank - that's not being a conformer. But that's where the great stuff happens. Or, it's doing what we focus on here - getting residual income from rental property to buy the time to do what you want to do ... or be who you really want to be. It's more generationally-proven than those strict entrepreneurial endeavors. It's neither quick nor easy, but real estate is a stronger tree branch - and your fruit IS out there. If you get 40 rental doors that even cash flow just $150 a month each = That's $6,000 month in rental income for you. Or double that or 10X that if you need to. Most people live inside circle of certainty with their job and life. And in that small circle, we'll call it 100% safety & security. Now, if you enlarge your circle so that it surrounds the first one, you might be living where you only have 80% certainty in your life's outcome. If you make an even larger circle, around the first two, and really go for it, now your sense of certainly might be down to 60%. But the one thing that you CAN be certain of then, it's that you won't have any regrets. The #1 regret of elderly people that are in a nursing home is that "Gosh, I never tried _____". They didn't go out on that limb and they never tasted that sweet, succulent fruit. I can help tell you whether you're going out on a limb or not, right now. Do you know what the most powerful assignment is - with regard to this - it's to write your own obituary. Put pen to paper. If you must write your own obituary, right now … you're going to have great clarity on if your accomplishments are or your contributions … or your current trajectory … are putting you where you need to be. I think writing your own obituary can strike some fear into you. It puts some fear into me. What would people say about what you did? What would you write down about yourself? In over 6000 years of recorded human history, no one has ever achieved anything outstanding by playing it safe. No one. The message is clear. You need to either accept the necessity for calculated risk, or settle for way, way less than you deserve. Look, I've got this friend from childhood from when I lived back in Pennsylvania. Nice guy, nice family. He became a public school teacher - math teacher. And today, I see his posts on Facebook more often than I see him. One of the things that he commonly posts about are that he complains about how public school teachers aren't treated well because he has disappointingly low pay. And I see a lot of his teacher friends commenting on his posts, lamenting about the fact that they have low incomes, and have to take second jobs in the summer or whatever. Well, after seeing a lot of these posts, I commented with an actual SOLUTION to the problem one time. My comment was something like - and here's what I wrote: "Many teachers that I know make $500K to $1M per year and they have great control of their time." That's what I wrote. You should have seen their reaction. My friend and the other teachers on that thread were asking me how this could be - some of them even direct messaging me. And I said, these well-paid teachers are online teachers. Yeah, they wake up each morning and see how many video course subscriptions they sold overnight. You should have seen their reaction to that - they were quickly uninterested. That sounded scary. That didn't meet conformity. Now, I've got nothing against public school teachers. In fact, I appreciate what they do. But you can see how much fear there is … with going out on a limb. See, when you try to provide a SOLUTION to people's problems, they'd usually rather stay small, stay secure, and keep settling - staying inside that 100% certainty smaller life circle. Do you think that a public school teacher would agree that their 12-year-old student should be a lifelong learner? Yeah, they probably would. But is that public school teacher being a lifelong learner themselves if they won't provide a better life for themself by learning some new online teaching and internet marketing skills? Everyone wants change. But no one wants TO change. This is not about condemning people for being employees. It's about removing that wall between you and what you want. Because look, you might be a highly compensated employee that WANTS to teach public school math or English to 12-year-olds. But you can't afford to make the, say $55,000 a year that a teacher makes. Building a second income with something proven like real estate softens that financial blow, and it lubricates that transition to doing what energizes you - teaching English to 12-year-olds. This way, you're a teacher, but you're not dissatisfied that your salary is low - because teaching isn't where you started - and now you're probably more valuable to 12-year-old students because you are where you really want to be. The riskiest thing you can possibly do is stay safe and take zero risks because then, you virtually guarantee that you'll never get the life that you could have had. Residual income gives you the ability to leverage time - and also provide some physical possessions. I don't think there's anything wrong with some materials stuff. Even if physical stuff isn't what life is about, it can help you facilitate your best life. Even a simple hiker would like a nice, comfortable backpack, tent, and a sleeping bag. Some people say they want to "live frugally" but, they only say that because they've been conditioned and they don't know HOW to live better. When people say, "I want to live frugally", often, what they really want to say is: "I'd like to live well". Like I've said elsewhere, the great conundrum of modern society is that … … people spend all this time learning about how work works … and zero time learning about how money works. Yet money is the main reason that they even go to work. Hmm. Can you believe that. Even if you're one of the fortunate few that doesn't want a substantial life change, adding a monthly stream of real estate income on top of your current situation sure won't hurt you. Investing in real estate myself - ihelped ease my transition from a day job - to doing things like this show - creating value for people in the way that I want to do it. I invest in - especially this WORKFORCE type of housing - myself. Earlier today, I talked about some of the economic and demographic "whys" about these modest but decent rental single-family rental homes and small apartment buildings that we so often favor here. As the American family size continues to shrink and birth rates fall, people want smaller SFHs. Think about how people live. Smaller family sizes are a trend away from McMansions. Millennials and Gen Zers are also environmentally conscious. That's the future, where there's been this spurning of extravagance. That's why these low-cost rental single-family homes are in such demand. In fact, a recent report by economic research consultancy Capital Economics shared a stunning statistic: The number of vacant single-family homes … for sale … priced under $250,000 has halved since 2012. Yes, there are only half as many available now as then. In fact, according to the report, there are only 550,000 vacant homes on the market priced under $250,000. That's half as many as there were just eight years ago. That's astounding. When there's a downturn, people will move from the $2K-$3K rent homes into yours where they pay $1,000-$1,500. In fact, I just bought two more of these single-family rental homes last month myself. One was $150K and the other about $130K. And I bought them from GREturnkey. And you know, if you're on the edge with your next move, and you don't know if you should invest in a property or more education … and you're trying to decide between the two ... As long as you've got a little education, I'd err toward you putting another "property" in your portfolio - or your first property. Why is that? That's because when you buy a property, you get a substantial education about it from the inside. Buying and owning is the REAL world education that any classroom simulation can't replicate. Owning property gives you education … … but more education alone doesn't give you more property. So here, we both teach a man - or woman - to fish AND give you a fish. We do both. GREturnkey.com is where I've done my own property buying for years - including where I purchased these most recent two. Go there, read a couple reports in some markets that interest you, and get some property under contract. Over there, right now, I can tell you that: In Alabama - Birmingham and Huntsville has been furnishing income property pretty actively. In Ohio, Dayton has been bringing inventory to the market that exceeds a 1% rent-to-value ratio, meaning that you get more rent income per invested dollar there than nearly anywhere else. Further south, Memphis and Little Rock have similar profitability to Dayton - and there are some really low price points in Memphis if you're just looking to get started. Then, Jacksonville has brand NEW construction turnkey property and actually have investor houses available now. Lower cash flow there but brand new. Then, in Tampa, Florida, you can get a little cash flow and the Tampa-St. Pete metro was the 2nd-highest appreciation market in the nation at 5%. Yes, year-over-year, Tampa was 2nd … and you can get cash flow in the submarkets north of there. Tampa has been furnishing, oh, maybe 4 or 5 turnkey properties onto the market each month. And, see, as noted, inventory is tight nearly everywhere. In Tampa, you're looking at something like $1,200 of rent income for a $150,000 property. At GREturnkey, Chicagoland has an interesting dynamic. Where you're investing in Chicago's suburbs of northwestern Indiana. That way, you get the proximity and economic diversification of a world-class city like Chicago, yet being on the Indiana-side of the state line gives you property taxes that are less than half of that than if you were on the Illinois-side. Everything I'm discussing here is designed for OUT-of-the-area investors … like me and probably like you too. It's turnkey … meaning that the property is fully renovated, under a property manager's management, and often even occupied with a tenant on the day that you buy… … so that you're enjoying that mailbox money … or ACH bank draft money as it might be. You can find all those providers and more at GREturnkey.com A big thanks to, well Mark Twain for some inspiration today. "Why not go out on a limb? That's where the fruit is." I'm back next week with Tom Wheelwright. Until next week, get started at GREturnkey.com I'm your host, Keith Weinhold. Don't Quit Your Daydream!

Get 15 - 30% more rent income for your existing property. Learn how to attract a better "Class B" tenant to a lesser "Class C" property. We're getting "hands-on" today. Kevin Cross tells us about this and how to buy a bargain property (hint: find poorly-managed property). Small tweaks make a big difference in your property's rent income: clean grounds, orderly common areas. Add amenities inside units yourself like: Wi-fi, TVs, curtains, artwork. Your success is highly tied to tenant quality. Learn how to talk to a tenant engaged in illegal activity. A house cleaner can put eyes on your property. To learn about Virtual Property Pro owner assistance service, e-mail Kevin at: kevin@alaskarex.com This is an intermediate step if you're not ready for pro mgmt. Often eliminate: garage door openers, garbage disposals, 2-bay sinks. Incorporate your hobby into your rentals; now your hobby is profitable. Though I personally use professional management, self-management fits our guest's lifestyle. __________________ Resources mentioned: Kevin Cross contact: Email: kevin@alaskarex.com Mortgage Loans: RidgeLendingGroup.com eQRP: Text "QRP" to 72000 or: TotalControlFinancial.com By texting "QRP" to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply "STOP" to cancel. JWB New Construction Turnkey: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation