Get Rich Education

#189: If an income property is so good, why would anyone sell it to you? You get answers. I tell you how long it took me to quit my day job to replace it with passive income. Single-family income properties vs. apartment buildings are compared. Invest in a growing place. Florida keeps growing due to: affordable housing, warmth, coasts, and it’s the only income tax-free state east of the Mississippi River. The Orlando, Florida area has grown 20%+ in just the last decade. Turnkey RE investing means that a property is: 1) Already rehabbed.  2) Tenanted. 3) Under Management. 4) Produces income from Day One. $80-$150K, 36-month avg. tenant duration, 1.8% property tax, rent-to-price ratio ~0.9%.   Areas north of Orlando work best. Some areas to the south have economies more dependent on fickle tourism. Learn more about investing in Orlando turnkey property at: GetRichEducation.com/Orlando Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my new, best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 01:14 I discuss how long it took me to quit my day job. 02:51 Single-family income properties vs. apartment buildings. 10:34 Why Florida grows at a phenomenal rate. 16:11 Two incomes doesn’t have to mean “both parents work”. 18:02 Definition of “turnkey”. 19:25 Pros and cons to turnkey RE investing. 22:02 Communication with investors. 24:52 Submarket selection. 26:35 The numbers. 31:24 If the property is so good, why would anyone sell it to you? 33:42 Housing demand far outstrips supply. 36:00 Older tenant demographic in central Florida. 38:16 Bulk and standardized materials. 39:35 Get the Orlando Investor Report at: GetRichEducation.com/Orlando. Resources Mentioned: Orlando Property: GetRichEducation.com/Orlando Cash Flow Banking: ProducersWealth.com Mortgage Loans: RidgeLendingGroup.com Apartment Investor Mastery: BradSumrok.com Find Properties: GREturnkey.com GRE Book: 7 Money Myths Education: GetRichEducation.com

#188: Learn to run the numbers step-by-step on a real income property and determine your ROI on 1502 Merrycrest Drive in Memphis, TN. We discuss how to create your own economy. It depends on YOU, not the national government or the local economy. Your income property is merely a widget that secures an income stream. Many people self-manage and have no margin for professional management. You often get a better return passively than they do actively. Why pin your hopes on compound interest? Consider compound cash flows. Inaky Strick joins us to tell you what he’s learned from attending elite live events. Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my new, best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 01:02 How to create your own economy. 05:23 Your income property is merely a widget that secures an income stream. 06:54 We run step-by-step numbers on 1502 Merrycrest Drive, Memphis, TN and determine your cash-on-cash return. 14:14 Real estate math is simple. 15:20 Total ROI calculated with the “5 Ways” you’re paid. 19:52 Why I don’t consider “instant equity” as a sixth way you’re paid. 21:17 Compound cash flows. 25:40 Inaky Strick tells us what he’s learned from attending live investing events. 34:25 How Inaky affords going to all these events. 39:35 Your self-belief. Resources Mentioned: InakyStrick.com MidSouthHomeBuyers.com Events: GetRichEducation.com/Events Cash Flow Banking: ProducersWealth.com Mortgage Loans: RidgeLendingGroup.com Apartment Investor Mastery: BradSumrok.com Find Properties: GREturnkey.com GRE Book: 7 Money Myths Education: GetRichEducation.com

#187: A mortgage is a tool. Used responsibly, you can control 5x as much real estate with 20% equity than you can with a paid-off property. Risk is discussed. If I could, I would want 100-Year Mortgages rather than 30-Year Mortgages on my properties. You’ll learn why. Graham Parham of Highlands Residential Mortgage joins us. He tell us the latest income property loan requirements today. We discuss conventional loans on 1-4 unit rental properties. Graham tells us about your Ability To Repay (ATR) factors that mortgage underwriters seek. We discuss your Debt-To-Income ratio limits, Reserve Requirements, interest rates today, credit scores, paying discount points, 30-year vs. 15-year mortgages, and appraisals.    Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my new, best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 00:57 You can own and control more real estate if you have loans on them. 02:08 What’s the risk of borrowing? 03:26 100-Year Mortgages. 09:24 Qualifying for loans if you don’t have “W-2” income from a day job. 11:57 Loans for foreign buyers that want U.S. income property. 13:18 Ten loans with 20% down. 13:49 Ability To Repay (ATR). 15:52 Debt-To-Income (DTI) ratio example. 16:23 Your reserve requirements. 19:13 Interest rates today. 21:18 A 740 credit score is the highest that can help you. 24:23 Paying discount points. 28:03 ARMs and 30 vs. 15-Year Mortgages. 30:45 Example of one paid-off property vs five with 5:1 leverage. 33:43 Appraisals. Resources Mentioned: Graham’s phone: 1-855-326-6802 Graham’s website: TexasInvestorLoans.com Graham’s resource: InvestorsLoanGuide.com Cash Flow Banking: ProducersWealth.com Mortgage Loans: RidgeLendingGroup.com Apartment Investor Mastery: BradSumrok.com Find Properties: GREturnkey.com GRE Book: 7 Money Myths Education: GetRichEducation.com

#186: You’re paid five ways as a real estate investor. Rich Dad Tax Advisor Tom Wheelwright and I add up those five rates of return and provide you with an estimated Year One ROI. We discuss how to make trips to visit your turnkey rental property a tax-deductible event. With the new tax law, taxes are adjusted for “inflation” more often than previously. But CPI isn’t used. It doesn’t keep up with “real” inflation. Tom is the author of “Tax-Free Wealth”. Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my new, best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 01:00 The Masters Law. 04:39 Belize Investor Tour. 09:10 Tom Wheelwright and I on real estate ROI. 18:55 Real estate depreciation example. 24:34 Making your trip to visit your turnkey property a tax-deductible event. 33:23 Inflation and taxes. Resources Mentioned: More About Tom: Wealthability.com Belize Investor Tour: GetRichEducation.com/Belize Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ProducersWealth.com Apartment Investor Mastery: BradSumrok.com ShadowStats.com Find Properties: GREturnkey.com GRE Book: 7 Money Myths Education: GetRichEducation.com

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

#184: Higher interest rates are obviously bad for real estate investors that make new purchases. Few realize that higher interest rates often translate into HIGHER housing prices. How could that be true? I explain. MacroWatch’s Richard Duncan joins us. He tells us why interest rates are likely to rise substantially in coming years. Learn why low inflation pushes down interest rates and why high interest rates cool an economy. Also learn why the U.S. is now destroying billions of dollars every month, and tariffs’ effect on interest rates. Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my new, best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 02:13 How higher interest rates translate to higher home prices. 10:05 Decades ago, how Richard knew lower interest rates we coming in the early 2000s. 12:23 Why low inflation pushes down interest rates. 13:27 Higher interest rates cool an economy. 15:35 Why long-term interest rates could be pushed substantially higher. 19:06 Quantitative Easing ended. Quantitative Tightening has begun. 21:58 Tariffs and the looming “Trade War”. 25:16 Reversing globalization can increase inflation and interest rates. 26:26 Why fixed-rate mortgages are better than adjustables. Resources Mentioned: MacroWatch: RichardDuncanEconomics.com Article: Higher Interest Rates Mean Higher Home Prices Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ValhallaWealth.com Apartment Investor Mastery: BradSumrok.com Find Properties: GREturnkey.com GRE Book: 7 Money Myths Education: GetRichEducation.com MortgageNewsDaily.com

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

#182: Using your home as an ATM or credit card? Is this irresponsible? A listener and I discuss the risks and rewards of using a Home Equity Line Of Credit (HELOC) to cash out your home equity for use in income property investing. Our guest is a Get Rich Education listener and Grammy-Nominated Music Producer Blake La Grange of San Diego, CA. Most people settle for “Maybe someday.” Instead, optimize what you have now. Use leverage, debt and equity, and arbitrage to your advantage. Blake & his wife played the speculative property appreciation game well. Their $585,000 home soon appraised for $700,000+. This provided equity for them to transfer into income property. Want more wealth? 1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2)    Actionable turnkey real estate investing opportunity: GREturnkey.com 3)    Read my new, best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: [02:44]  Meet Blake La Grange, San Diego-based GRE listener and Music Producer.   [04:45]  Blake’s mindset change from debt-free to financially-free. [11:24]  Blake & his wife’s first home cost $585,000. [15:11]  Private Mortgage Insurance. [17:17]  $700,000+ home appraisal. [20:08]  Home Equity Line Of Credit (HELOC). [27:54]  Listening to GRE “like crazy”. [31:06]  Blake and turnkey real estate in Birmingham and Memphis. [38:27]  Pay off rentals or keep exchanging? [40:22]  Going from owning zero properties to one is most difficult. [45:22]  Even if your mortgage balance is zero, you still have housing payments. Resources Mentioned: Guest’s website: BlakeLaGrange.com Guest’s e-mail: blake.lagrange@gmail.com How To Turn $100K Into $300K In Five Years Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ValhallaWealth.com Apartment Investor Mastery: BradSumrok.com Find Properties: GREturnkey.com GRE Book: 7 Money Myths Education: GetRichEducation.com

#181: Learn how to permanently reduce your taxes. At a W-2 job: the government gets paid first, Wall Street second, and you’re third. I recite “A Tale Of Two Real Estate Markets”. This story will shift your thought paradigm and make your jaw drop. Tom Wheelwright & I discuss income tax and capital gains tax - rates, history, and strategy so you legally pay the lowest possible rates. Learn why house flippers pay higher tax rates than buy-and-hold real estate investors. Where will tax rates be in the long-term future? Tom discusses. Want more wealth? 1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2)    Actionable turnkey real estate investing opportunity: GREturnkey.com 3)    Read my new, best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 01:02  “A Tale Of Two Markets”. 13:10  At a W-2 job: the government gets paid first, Wall Street second, you third. 14:05  Income tax, Social Security tax. 30:13  Capital gains tax. 36:48  Thoughts about where future tax rates will be. Resources Mentioned: Wealthability.com BLS Unemployment Data Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ValhallaWealth.com Apartment Investor Mastery: BradSumrok.com Find Properties: GREturnkey.com GRE Book: 7 Money Myths Education: GetRichEducation.com

#180: Stop looking at properties. (What?) I discuss. Are you in real estate for appreciation, cash flow, or something else? If you focus on cash flow, does that mean less appreciation, and vice versa? We discuss when a market becomes "too hot to buy for cash flow” any longer. The Midwest has more affordable property and better cash flow but less recession resilience. Dallas-Fort Worth keeps showing appreciation potential, but cash flow is drying up. When a market heats up, rents don’t “keep up” proportionally to a property’s market value. We also discuss low appraisals. Appraisals are what the bank uses to verify the quality of their collateral. Want more wealth? 1)    Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2)    Actionable turnkey real estate investing opportunity: GREturnkey.com 3)    Read my new, best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 00:54  Stop looking at properties. (What?) 03:36  The importance of cash flow, appreciation. 07:07  The Midwest: more affordable housing, better cash flow, but less recession resilience. 08:52  Dallas-Fort Worth’s appreciation. 11:00  When a market becomes too hot. 14:48  “Lump Sum Cash Flow” defined. 16:23  With 5:1 leverage and 6% appreciation, $100K becomes $300K in five years. 18:22  Blended portfolio. 21:10  Median rent income vs. median housing value. 25:17  Why low appraisals can occur. Resources Mentioned: Dallas property: GetRichEducation.com/Dallas Kansas City property: GetRichEducation.com/KC St. Louis property: GetRichEducation.com/StLouis GRE Book: 7 Money Myths Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ValhallaWealth.com Find Properties: GREturnkey.com Education: GetRichEducation.com