Get Rich Education

#159: Negotiation is a substantial part of real estate and investing. We discuss exactly what you do when the tenant wants to pay the rent late. I tell you exactly how I negotiated the price and terms on the very home that I live in today! Then our guest, Kwame Christian, Founder of the American Negotiation Institute joins us. He defines negotiation as “A conversation where somebody wants something.” Three uses of negotiation: 1) Use offensively. 2) Use defensively. 3) Strengthening relationships. We discuss how you negotiate in a way where you keep a strong relationship with the other party, rather than alienate them. We talk about how to motivate your Property Manager to work hard on your behalf. In negotiation, let other party speak first. Let them make the first offer, except when you have more information. We discuss midpoint negotiation. “Anchoring” is an important part of negotiation psychology. This can help you get a better deal. Kwame and I discuss what people will pay what an item is worth to them, not you. But what about sentimental value and sunk cost? In a real estate sellers’ market, should you ask for more than you expect, or only what you expect? Learn about the negotiation techniques of “log rolling”, multiple offers, and “always get the last concession”. We discuss introverts and negotiation. Negotiation is a learned skill; it is not innate. Learn exactly what to do to become a better negotiator in just the next 24 hours. In negotiation, where do ego and emotion fit in? Want more wealth?   1) Grab my free E-book and Newsletter at: GetRichEducation.com     2) Actionable turnkey real estate investing opportunity: GREturnkey.com   3) Read my new, best-selling paperback: GetRichEducation.com/Book Listen to this week’s show and learn: 01:22  Negotiation technique for a late-paying tenant: say these 7 magic words. 03:38  How I negotiated the price and terms on the exact home that I still live in today! 08:49  Kwame Christian interview begins. 10:01  Definition of negotiation. 11:38  Three uses of negotiation: 1) Use offensively. 2) Use defensively. 3) Strengthening relationships. 13:48  How to motivate your Property Manager to work hard on your behalf. 16:40  Let the other party speak first. 19:00  Midpoint negotiation. The psychological principle of “anchoring”. 25:19  People will pay what an item is worth to them, not you. 27:18  Sentimental attachments and sunk cost. 29:50  In a real estate sellers’ market, should you ask for more than you expect, or exactly what you expect? 31:33  Negotiation technique of “log rolling” (presenting a seller with multiple offers). 32:43  Always get the last concession. 34:55  Don’t be a “nibbler”. 36:11  Introverts and negotiation. 38:49  Negotiation is a learned skill; it is not innate. 40:30  Do this in the next 24 hours in order to be a better negotiator. 45:08  Ego and emotion in negotiation. 46:19  Hotel room negotiation technique. Resources Mentioned: Negotiate Anything podcast Negotiation Guide RidgeLendingGroup.com MidSouthHomeBuyers.com GetRichEducation.com GREturnkey.com

#158: Generate $5,000 to $15,000 monthly cash flow from one single-family home converted into an Assisted Living Home (ALH). The demographic trend is your friend. Every year 1.4 million Americans are turning age 85. To invest in ALHs, begin with the property’s location.  We discuss exact numbers on how a Profit & Loss Statement differs from that of residential cash-flowing turnkey property. You optimize income by attracting “Private Pay” residents, not Medicare/Medicaid residents. We discuss how. We discuss how an ALH Manager’s role differs from that of a residential Property Manager. We discuss. Risks and licensing requirements might not be onerous, yet they’re barriers of entry to others. Financing options are quite favorable if you want to begin an ALH. Gene Guarino, Founder of the Residential Assisted Living Academy, is our guest today. As a gift, he offers us a FREE 6-Part Residential Assisted Living Training. Gene has also founded the upcoming Residential Assisted Living National Convention. The inaugural annual event takes place Nov. 10-11 in Scottdale, AZ. Want more wealth?   1) Grab my free E-book and Newsletter at: GetRichEducation.com     2) Actionable turnkey real estate investing opportunity: GREturnkey.com   3) Read my new, best-selling paperback: GetRichEducation.com/Book Listen to this week’s show and learn: 01:33  Negotiation. 02:56  Scarcity vs. abundance. 06:10  No paycheck can buy yesterday. 07:27  Gene Guarino interview begins. 10:10  Don’t move Mom into a hotel, but rather a small Assisted Living Home (ALH). 11:05  Location. 16:13  Options: You could own the real estate and lease the ALH business to others, the “Golden Girls” model. 18:36  Retrofitting a home for seniors. What physical amenities are needed? 20:54  Zoning and HOAs. 22:01  Monthly Profit & Loss Statement. 26:52  How to attract the more lucrative “Private Pay” residents. 31:06  What does an ALH Manager do? 32:47  Gene & his wife spend 5-10 hours / week. 34:48  Risks, licensing, documentation. 37:59  Financing options. 41:02  Professional vs. casual approaches to investing. 42:28  Getting the first resident in your ALH. 45:05  ROI = Return On Involvement. 47:44  Gene offers you a gift: FREE 6-Part Residential Assisted Living Training. 48:20  Gene founded the upcoming Residential Assisted Living National Convention in Scottsdale, AZ on November 10th and 11th. Resources Mentioned: FREE 6-Part Residential Assisted Living Training Residential Assisted Living National Convention : ralnatcon.com RidgeLendingGroup.com MidSouthHomeBuyers.com GetRichEducation.com GREturnkey.com

#157: With steadier cash flows than residential real estate, 100% occupancy, zero chance of tenant damage to your property, appreciation potential, and a low cost of entry, anyone can own part of their own cacao (chocolate) farm in Latin America. Investors like you can own individually deeded ½ acre parcels of cacao trees, turnkey managed, and expect to yield cash flow on an annual basis from the harvest and sale of cacao, chocolate and its related products. David Sewell, Founder of the Belize Cacao Consortium (BCC), talks with me about the field trip that I recently took in Belize. I learned about investing in cacao “from seed to chocolate bar”. Supply vs. Demand: The world has less & less arable land, and more and more mouths to feed. High-end specialty cacao (a.k.a. “Fine flavored cacao”) has a demand that far exceeds supply. Belize has long been known as a cacao-producing region. The BCC brings needed professional agronomy and soil science to add value to cacao farm operations. We discuss the upsides and risks of owning your own producing cacao parcels. Want more wealth?   1) Grab my free E-book and Newsletter at: GetRichEducation.com     2) Actionable turnkey real estate investing opportunity: GREturnkey.com   3) Read my new, best-selling paperback: GetRichEducation.com/Book Listen to this week’s show and learn: 02:50  Renowned investor Jim Rogers says that agriculture is going to be the big thing over the next 20 years. 08:03  Why Belize? Why cacao? 11:29  Bringing professional agronomy and soil science to add value to cacao operations. 12:50  Treating the Mayan workers well. 16:20  Planting raw land parcels with cacao trees. 19:55  Three pillars of sustainability: economic, social, environmental. 23:27  Risks. 31:40  Predictability of income. 34:05  Projected yield of 11-13% annually. First cash flow expected in 15-18 months, annual thereafter. 36:35  Exit strategy. Legacy. 39:02  Visitor field trips to the agricultural fields. 41:11  Available inventory. 42:50  Professionalism. Resources Mentioned: GetRichEducation.com/Chocolate GetRichEducation.com/Coffee RidgeLendingGroup.com MidSouthHomeBuyers.com GetRichEducation.com GREturnkey.com

#156: Unemployable by choice, Nick Bond, age 22, is a recent college graduate that is building his own real estate business rather than getting a job. School grades aren’t any more predictive of success than rolling a pair of dice. I discuss Boston College research that supports this. Valedictorians don’t become billionaires. Millionaires have an average college GPA of 2.9. Is it worth it to go to college? College is more expensive in the U.S. than anywhere else in the world. Yet at the same time, the value of a college degree has dropped. Once you got out of school, you found yourself “making things up” as you go. Later, you find out that everybody is “making things up”. Today’s guest, Nick Bond isn’t taking the j-o-b route that his friends are. He was influenced by his parents to be more entrepreneurial. Nick has begun raw land investing / flipping. Get control of both your time and your geography. Live a cloud-based life through Google Drive and Dropbox. Read your monthly real estate property management statements from wherever you choose to live, and enjoy the passive cash flow. Want more wealth?   1) Grab my free newsletter at: GetRichEducation.com     2) For actionable turnkey real estate investing opportunities: GREturnkey.com   3) Read my new, best-selling book: GetRichEducation.com/Book Listen to this week’s show and learn: 01:32  Why valedictorians don’t become great financial successes. 02:48  Millionaires, with 2.9 average GPAs, are known for grit. 04:19  Is it worth it to go to college at all? 06:20  Unemployed vs. Unemployable. The difference? Options. 07:06  Nick Bond interview begins. 08:50  Nick’s parents wanted him to go to college more for the experience than the education. 10:43  Does Nick even want a work-a-day job? 11:40  Nick’s Dad told him not to get a real job! 12:42  What are Nick’s friends doing? They’re making $40K - $90K. 14:27  Student loan debt. 15:09  Home ownership. 16:55  What Nick does today: land flipping / investing. 23:00  Investor Summit At Sea. 25:02  Seeking freedom, giving back to community. 26:34  The Land Geek. 28:17  Business systems. 29:38  Qualifying for your home with your transcript and diploma. 31:04  Nick’s website: www.reinvestrategy.com. 34:01  The value in Get Rich Education’s free newsletter. Get it at GetRichEducation.com Resources Mentioned: College Costs More In America Than Anywhere Else RidgeLendingGroup.com NoradaRealEstate.com MidSouthHomeBuyers.com GetRichEducation.com GREturnkey.com

#155: Do what Amazon does. That is what you are doing when you invest passively in income property. But it’s easier than building a business like Amazon.  Like Amazon Prime, your RE portfolio has a recurring income stream. Amazon provides society with non-discretionary items like household goods; RE investors provide society the non-discretionary household itself. Today’s guest, Abhi Golhar of Real Estate Deal Talk, emphasizes why cash flow is king today. He is exiting many flips in order to purchase cash-flowing SFHs and multifamilies. He tells us why. Abhi talks about “Rich Dad, Poor Dad”, how to select a mentor, and much more. Abhi and I discuss real estate trends via geographics, demographics, and psychographics. Want more wealth?   1) Grab my free newsletter at: GetRichEducation.com     2) For actionable turnkey real estate investing opportunities: GREturnkey.com   3) Read my new, best-selling book: GetRichEducation.com/Book Listen to this week’s show and learn: 00:50  Real estate investing is like Amazon’s success model, only easier. Here’s why. 04:38  “Rich Dad, Poor Dad”. 07:42  Buying and selling cars on eBay. 10:13  Following and choosing mentors. 18:37  The durability of real estate as it relates to caring for your body. 21:22  Freedom. 23:11  Real estate appreciation the last 5+ years. 26:34  Real estate geographics, demographics, and psychographics. 33:22  Abhi is exiting flips and purchasing buy-and-hold income property. Cash flow is king. 35:26  Responding to listener feedback, Get Rich Education’s new episodes will begin publishing four days sooner: Mondays hereafter, rather than Fridays. Resources Mentioned: RealEstateDealTalk.com RidgeLendingGroup.com NoradaRealEstate.com MidSouthHomeBuyers.com GetRichEducation.com GREturnkey.com

#154: After you have 10 financed residential properties and you want more, we discuss your options. These Specialty Loan Products are exciting. Example: 25% down, 5.9% interest rate today, 30-year amortization. We learn this today from Ridge Lending Group President and CEO Caeli Ridge after she first reviews qualification criteria for the first 10. I also discuss a simple way for you to increase your Cash-On-Cash Return with no extra money out of your pocket. We discuss what’s changed with qualification requirements for your debt-to-income ratio, reserves, LLCs, liquidity, cash-out refinance limits and more. I bring you today’s show from San Jose, Costa Rica. Want more wealth?   1) Grab my free newsletter at: GetRichEducation.com     2) For actionable turnkey real estate investing opportunities: GREturnkey.com   3) Read my new, best-selling book: GetRichEducation.com/Book Listen to this week’s show and learn: 01:17  How to increase your Cash-On-Cash Return. 03:42  High closing cost states: TX, FL, northeastern states. Low closing costs: MO, IN, AZ, AL. 07:11  Conventional loans: DTI 50% max., LLC change, liquidity, reserves. 15:14  Interest rates. 17:02  Cash-out refinance limits. 21:50  Specialty Loan Products (beyond 10 financed properties): 25% down, 30-year fixed amortization, 5.9% interest rate today (wow!), no limit to the number of properties, discount points. 27:18  Foreign buyers: 7.99% rate today, 5-year ARM, 30-year amortization. 29:03  Your tax return. 30:31  Today’s lending environment. 32:43  RidgeLendingGroup.com specializes in your income property loan qualification. Resources Mentioned: RidgeLendingGroup.com NoradaRealEstate.com MidSouthHomeBuyers.com GetRichEducation.com GREturnkey.com

#153: Where are real estate prices headed? I discuss this with Kathy Fettke of The Real Wealth Network. Demand still exceeds supply in many places. But in coastal areas, affordability problems could be a constraint on future appreciation. The latest Case-Shiller 20-City Index shows 5.7% year-over-year housing price growth. Though this is surely an imperfect metric, it is a historically sustainable growth rate. It is also supported with responsible lending. Kathy & I have each invested through the 2008-2009 Mortgage Meltdown and Great Recession. We discuss how that shapes our investor behavior. I also discuss how natural disasters like hurricanes can pummel those that have a lot of equity in their properties. I bring you today’s show from Punta Gorda, Belize. Want more wealth?   1) Grab my free newsletter at: GetRichEducation.com     2) For actionable turnkey real estate investing opportunities: GREturnkey.com   3) Read my new, best-selling book: GetRichEducation.com/Book Listen to this week’s show and learn: 01:05  Hurricanes: how to protect your real estate. 05:33  When a loan is made, the borrower is in more control than the lender. 10:14  Supply vs. Demand. 12:56  Builders aren’t building the most in-demand housing types. 13:20  Housing Affordability Index (HAI). 16:07  30-40% of the USA is overpriced. 60%+ is not. 18:28  Annual price appreciation is 5.7% per the latest Case-Shiller numbers. 20:05  Recency bias. 25:25  Holding Kathy & I accountable for what we said 19 months ago. The Fed, Trump. 31:25  Higher interest rates? Apartment buildings will be riskier than single family homes. 34:55  Best places for real estate investors today. 38:32  Texas. 41:02  More renters and fewer buyers mean that new RE investors are needed. 44:17  Trump will protect the mortgage interest deduction and 1031 Exchange. Resources Mentioned: RealWealthNetwork.com RidgeLendingGroup.com NoradaRealEstate.com GetRichEducation.com GREturnkey.com

#152: I recently made a real estate market field trip to St. Louis, Missouri. As one of the 20 largest U.S. metropolitan areas, its job growth and diversity of business sectors support durable rental income streams for real estate investors. Typical price points are $1,100 rents and $110,000 purchase prices for single-family income property in St. Louis. St. Louis has city housing inspectors - upside: this supports neighborhood condition, downside: they must be complied with. Kansas City, Missouri is also experiencing steady job growth amidst varied employment sectors. Visitors to the city remark about the area's cleanliness. Both St. Louis and Kansas City have investor-advantaged rental neighborhoods that consist of about 65% owner-occupants. This promotes good curb appeal and safety. Missouri has Landlord-Tenant laws which favor the investor (landlord) more than the tenant. We’re discussing investment in turnkey income property: typically single-family homes that are already renovated, tenanted, and under management on that day that you buy. Learn more at: GetRichEducation.com/StLouis and GetRichEducation.com/KansasCity. Want more wealth?   1) Grab my free newsletter at: GetRichEducation.com     2) For actionable turnkey real estate investing opportunities: GREturnkey.com   3) Read my new, best-selling book: GetRichEducation.com/Book Listen to this week’s show and learn: 00:57  Apartment building investors have more interest rate risk than 1-4 family investors. 07:32  St. Louis, Missouri is a Top 20 U.S. metro. 09:48  St. Louis’ technology and medical sectors. 11:01  Not many St. Louis turnkey operators. City inspectors. 14:30  Neighborhood safety. 16:08  Tenant income $40,000 to $55,000 in St. Louis. 17:10  1% rent-to-value ratio. 18:44  Renovation extent. 23:30  Kansas City overview and their substantial job growth. 26:50  Relatively low property taxes. 27:03  Missouri Landlord-Tenant Law: 30-day evictions. 27:31  Kansas City cleanliness. 35:04  Investors are assigned an “Investor Concierge” as your one point of contact. Resources Mentioned: GetRichEducation.com/StLouis GetRichEducation.com/KansasCity RidgeLendingGroup.com NoradaRealEstate.com GetRichEducation.com GREturnkey.com

#151: Your job feels bad. It makes you wonder where your time went. Keith tells you why your job feels so bad, gives you possible solutions, and reminds you “where your time went”. Your job feels worse than ever due to economic, demographic, and social reasons. This is supported by data from the Bureau Of Labor Statistics, the Census Bureau, Bloomberg, and elsewhere. We explore. GRE listener Douglas Orr tells you how he built enough passive income to leave his job in just three years by quickly accumulating 50 rental doors. He respects his time by outsourcing property management. Douglas began RE investing by pulling $20,000 out of his 401(k) to buy a duplex and triplex. Want more wealth?   1) Grab my free newsletter at: GetRichEducation.com     2) For actionable turnkey real estate investing opportunities: GREturnkey.com   3) Read my new, best-selling book: GetRichEducation.com/Book Listen to this week’s show and learn: 02:01  Keith likes the new Apple AirPods wireless headphones. 03:46  “Where did your time go?” Keith answers. 05:58  Why your job feels so bad. 14:58  Straight out of high school, GRE listener Douglas Orr began working in an automotive factory. He lost control of his time. 16:29  Turning point: pulling $20,000 from his 401(k) to buy a duplex and triplex. 20:05  Beating the “one percent” target. 22:00  Managing managers less than four hours per week. 24:50  Douglas built his portfolio fast through shrewd equity management. He tells how. 27:42  Firing your boss. 29:53  Quitting your job: supportive family? 31:35  Caution: don’t do THIS before quitting your job. 34:26  You quit your job? Then what do you do all day? 37:28  Controlling $100 million worth of real estate. Resources Mentioned: Douglas Orr: greensburg.alpha@gmail.com Douglas Orr on Facebook Bureau Of Labor Statistics RidgeLendingGroup.com NoradaRealEstate.com MidSouthHomeBuyers.com GetRichEducation.com GREturnkey.com

#150: Giant mistake: investing in real estate only in your home market. You should be invested in at least 3 different geographic RE markets. This also how you can get a good mix of appreciation and cash flow over time. Volatility hurts your portfolio more than you think. Keith discusses two reasons why you will be in a more volatile environment in coming years: 1) Donald Trump, 2) Interest rates. Even if your home is paid off, you still have a payment. It’s an opportunity cost payment. You aren’t aware of it because you can’t see it. Do you live below your means or do you expand your means? Keith gives several real-life examples. You just can’t shrink your way to wealth. Keith brings you today’s show from Anaheim, California. Want more wealth?   1) Grab my free newsletter at: GetRichEducation.com     2) For actionable turnkey real estate investing opportunities: GREturnkey.com   3) Read my new, best-selling book: GetRichEducation.com/Book Listen to this week’s show and learn: 01:28  Volatility hurts you: 1) Donald Trump. 2) Interest rates. 05:16  Diversify: invest in RE in at least three metro markets. 07:37  ROTI: Return On Time Invested. 09:24  Invest between the Appalachians and the Rockies in SFHs just below the median purchase price. 11:00  Appreciation vs. Cash Flow. 12:07  How will 10 SFHs move you toward financial freedom? 17:48  Even if your home is paid off, you still have a payment. 20:24  “Live where you want to live and invest where the numbers makes sense.” 21:50  Tax-friendly states. 23:32  Examples: Living Below Your Means vs. Expanding Your Means. 28:51  When does your life really begin? Resources Mentioned: Article: How To Turn $100K Into $300K In Five Years Article: You Can’t Shrink Your Way To Wealth RidgeLendingGroup.com NoradaRealEstate.com MidSouthHomeBuyers.com GetRichEducation.com GREturnkey.com