Get Rich Education

#145: Financial advisors sell stocks. Buy-and-hold stock investing doesn't create wealth, but financial advisors create the illusion that they do. Today's guest, Ntellivest's Brent Sutherland, is a financial advisor that began successfully investing in cash-flowing real estate with 8 single-family properties. Brent pulls back the curtain on what's going on "behind the scenes" with financial advisors and their biased "advice". Really...what's wrong with stocks? Keith adds content about how and why buy-and-hold stocks don't create wealth with five reasons: inflation, emotion, taxes, fees, and volatility. This is partly due to secondary market dilution. Grab Get Rich Education's new book at: GetRichEducation.com/Book Want more wealth? Visit: 1) GetRichEducation.com to grab our free newsletter. 2) GREturnkey.com for actionable turnkey real estate investing opportunities. Listen to this week's show and learn: 01:12 Why live anything less than a great life? 03:04 Hordes of people still believe that buy-and-hold stocks create wealth. What's wrong with stocks? 05:41 The Nixon Shock, ERISA, and 1980s tax cuts. 10:52 Don't build a budget. 16:00 Financial advisors' pay structures don't allow for recommending real estate. 17:27 Capital gains vs. income. 20:51 Can financial advisors get paid on performance? 24:29 Timing the market and emotion. 27:16 Real estate investing is not an "alternative". 32:03 Your first income property cash flow check changes your life. Brent's $250-$300 monthly per property. 33:40 ROI. 38:06 Volatility. 41:32 Diversification. 43:34 401(k)s. 45:57 Today's stock market valuations. 48:12 When do you fire your financial advisor? Resources Mentioned: Ntellivest.com NAPFA.org NoradaRealEstate.com MidSouthHomeBuyers.com GetRichEducation.com GREturnkey.com

#144: In an economic crash, a great place to be positioned is in low-cost housing within a diversified metro market like Indianapolis, Indiana. Learn more at: GetRichEducation.com/Indy Indianapolis has a remarkable combination for investors: investor-advantaged property, a diversified economy, population growth, low unemployment, a business-friendly environment, low-cost housing, stable Indiana state finances, and more. Indianapolis' business drivers are in some of the most diverse and necessary sectors: healthcare, finance, technology, education, and more. Amazon has set up an enormous distribution center in Indianapolis due to its central geographic location. Today's guest offers turnkey cash-flowing real estate in Indianapolis. Grab Get Rich Education's new book at GetRichEducation.com/Book Want more wealth? Visit: 1) GetRichEducation.com to grab our free newsletter. 2) GREturnkey.com for actionable turnkey real estate investing opportunities. Listen to this week's show and learn: 00:45 In an economic crash, low-cost housing can be a safe place to be invested. 06:42 Our guest was led to Indianapolis for: cash-flowing real estate, a diversified economy, population growth, low unemployment, a business-friendly environment, low-cost housing, and stable Indiana state finances, and more. 08:42 Indianapolis' business drivers. 13:34 The State Of Indiana has a AAA credit rating and budget surpluses to help support business. 19:06 What if there's an economic crash soon? 24:07 Foreign buyers in Indianapolis. 28:40 Rent-to-value ratios in Indianapolis. 29:50 Vacancy rate. 32:22 Making a real estate field trip to Indianapolis. Resources Mentioned: GetRichEducation.com/Indy Harvard Joint Center for Housing Studies Pew Research Center NoradaRealEstate.com MidSouthHomeBuyers.com GetRichEducation.com GREturnkey.com

#143: You're entitled to a great gift from the IRS - lifetime tax-deferral so that you never have to pay capital gains tax on the sale of your investment real estate. With a 1031 Tax-Deferred Exchange, you can infinitely defer your: federal capital gains tax, state capital gains tax, and depreciation recapture. From the sale of your property, you have 45 days to identify, and 180 days to close upon your replacement property. Details in-episode. 1031s are only for investment property. They're amazing wealth-building tools, but you must follow strict rules. Graham Parham of Highlands Residential Mortgage joins Keith later in the show to discuss lending obstacles with 1031 Exchanges. Grab Get Rich Education's new book at GetRichEducation.com/Book Want more wealth? Visit: 1) www.GetRichEducation.com to grab our free newsletter. 2) www.GREturnkey.com for actionable turnkey real estate investing opportunities. Listen to this week's show and learn: 02:12 Normally, upon the sale of income property, one must pay federal capital gains tax, state capital gains tax, and depreciation recapture. 03:29 1031 Exchanges vs. cash-out refinances. Reasons for doing a 1031. 06:35 Three identification methods: 3 Properties Rule, 200% Rule, 95% Rule. 09:40 Like-Kind Exchanges are flexible between income property types. 12:18 A technique to use a 1031 and still get your hands on the cash. 14:12 Primary residences have capital gains tax exemptions outside of 1031s. 18:29 Lending obstacles with 1031s. 22:38 1031 Example - sell 2 in Dallas, exchange for 4 in Birmingham. 25:32 Greater leverage. 31:06 Combining multiple properties into one exchange. 34:11 Simultaneous closings. Advantage of 1031s with turnkey property. 35:40 You can do an unlimited amount of exchanges in your lifetime. 37:22 1031s are amazing wealth-building tools, but you must carefully follow rules. Resources Mentioned: Graham Parham phone: (855) 326-6802 NoradaRealEstate.com MidSouthHomeBuyers.com GetRichEducation.com GREturnkey.com

#142: Keith's $530,000 four-plex dropped in value to $480,000 during the 2007-09 Mortgage Meltdown. Lessons from the Housing Crisis of 2007-2009 still influence Keith's investing today. Our guest, Damion Lupo, lost worse than Keith at this time. His $20M portfolio imploded. Damion spent over a million dollars on seminars alone. He recklessly went all-out by purchasing 150 rental units across 7 states more than a decade ago - without regard for cash flow. It crashed. Today, his firm, Total Control Financial, helps you control your financial future with self-directed IRA and Solo 401K services for optimized retirement planning. Top takeaway: Buy for cash flow in stable economic metro markets. Grab Get Rich Education's new book at GetRichEducation.com/Book Want more wealth? Visit: 1) www.GetRichEducation.com to grab our free newsletter. 2) www.GREturnkey.com for actionable turnkey real estate investing opportunities. Listen to this week's show and learn: 00:57 Keith's $530,000 four-plex dropped in value to $480,000 in the 2007-09 Mortgage Meltdown. 15:37 If Damion could do it all over again, what would he do differently? 20:04 Harvesting equity. 24:29 Damion won't do deals with people in their 20s. 26:30 The next crash. 34:14 Hard money loans. 42:25 Retirement. 49:26 Choose stable markets in the Midwest and South. Resources Mentioned: TotalControlFinancial.com Investopedia.com NoradaRealEstate.com HighlandsMortgage.com MidSouthHomeBuyers.com GetRichEducation.com GREturnkey.com

#141: Real estate hedonics and inflation effectively mean that real estate goes down in price over time. So then how can it be such a great investment? Keith answers. We run the numbers on a Memphis duplex. Keith calculates a 32.4% ROI right before your eyes. Keith tells you how to make more income if you're living paycheck-to-paycheck. Learn about the opportunity cost of renting out a $620,000 south Florida home for $2,900. Grab Get Rich Education's new book at GetRichEducation.com/Book Want more wealth? Visit: 1) www.GetRichEducation.com to grab our free newsletter. 2) www.GREturnkey.com for actionable turnkey real estate investing opportunities. Listen to this week's show and learn: 01:37 Giving. 04:57 Real estate hedonics. 09:46 Calculating Total Rate Of Return from real estate. 17:57 Most real estate investors can't "keep score". 19:34 Living paycheck-to-paycheck. How to get started? 24:34 People want change, but don't want to change. 32:25 Renting out a $620,000 south Florida home. Resources Mentioned: NoradaRealEstate.com HighlandsMortgage.com MidSouthHomeBuyers.com GetRichEducation.com GREturnkey.com Clickbank.com | Kajabi.com

#140: Keith's new book is now out in paperback form at: www.GetRichEducation.com/Book. Direct investment in single family income properties has strong demand from both investors and renters. Single-family home (SFH) income property advantages include: they trade independent of market cap rates, stronger appreciation than apartments, inflation protection, amortization, tax depreciation, lower cost, easier financing, more understandable, no shared walls, divisibility, less tenant turnover, and better locations than apartments. Today's guest, HassleFreeCashFlowInvesting.com's David Campbell helps Keith break down single-family investing advantages. Grab Get Rich Education's new book at GetRichEducation.com/Book Want more wealth? Visit: 1) www.GetRichEducation.com to grab our free newsletter. 2) www.GREturnkey.com for actionable turnkey real estate investing opportunities. Listen to this week's show and learn: 01:15 Ken McElroy in 2017: "It's a terrible time to buy multifamily in most metros." 06:23 SFHs trade independent of cap rates. 09:57 Appreciation vs. Inflation. 11:03 SFHs are approachable because they're lower cost and financing can be easier. 14:52 No shared walls: pests, fires, noise. 15:48 Arbitrage. 18:00 Keep a low equity position for asset protection. 20:17 Divisibility. 20:53 The fallacy of "buying cash flow". 25:08 Prepaying the mortgage is a huge mistake. 27:55 SFH: no or low utility payments. 29:00 Neighborhood quality. 32:00 Cash flow. 33:51 Income tax-free states. 34:57 Tenant psychology in SFHs. It "feels like their own". Exit strategy. 36:50 GREturnkey.com has many of the best income property SFHs. 38:25 Ask: "Mr. Manager, what would like to manage?" 40:40 SFHs have less tenant turnover than apartments. 43:10 SFHs is where you typically start. 45:46 "Leaving a trail behind" with 3.5% down payment FHA loans. 48:30 David's free e-book at HassleFreeCashFlowInvesting.com. Resources Mentioned: HassleFreeCashFlowInvesting.com GetRichEducation.com/Book NoradaRealEstate.com HighlandsMortgage.com MidSouthHomeBuyers.com GetRichEducation.com GREturnkey.com

#139: Grab Get Rich Education's new book at: GetRichEducation.com/Book. You need money in order to trade it for time. You can't trade anything other than money for time. The housing inventory shortage will reach a peak before new construction can relieve the problem. Paying rent is not like "throwing money away every month." Keith breaks down the trade-offs between renting vs. owning your primary residence. Want more wealth? Visit: 1) www.GetRichEducation.com to grab our free newsletter. 2) www.GREturnkey.com for actionable turnkey real estate investing opportunities. Listen to this week's show and learn: 01:34 Apartment buildings between 2 and 9 units are no longer being built as often. 06:06 The overall shortage of housing inventory for sale. 07:23 Feeling imprisoned in your own home due to low inventory, rising interest rates. 12:39 Housing builder confidence is up. More new construction. 14:00 There is currently income property inventory in Jacksonville, FL: GetRichEducation.com/jax 17:39 Why do you think you need to own a home? 18:57 Paying rent is "not throwing money away". Here's why. 20:04 16 tradeoffs between Renting vs. Buying your own home. 28:06 Time vs. Money. Resources Mentioned: GetRichEducation.com/Book NoradaRealEstate.com HighlandsMortgage.com MidSouthHomeBuyers.com GetRichEducation.com GREturnkey.com

Yes! Our first-ever book has been released today at GetRichEducation.com/Book. Brief and to-the-point, with no guest writers or ghost writers, Keith dispels seven of the most common money myths that limit your financial growth potential including: "Be debt-free" (a myth), and "Get your money to work for you" (another myth, believe it or not). "7 Money Myths That Are Killing Your Wealth Potential" has already hit Amazon #1 bestseller status in multiple categories. Grab it now before the price goes up after Friday at: GetRichEducation.com/Book

#138: You've run out of money to buy real estate. What do you do now? You pool other people's money for the down payment through a process called real estate syndication. Learn how. Urban real estate investing involves: exploiting geographic class segregation, "moving the gentrification line", rent control, and public transit proximity. Today's guest, Victor Menasce, is an Ottawa, Canada-based real estate syndicator. He's an expert at teaching you how to raise capital from others for real estate deals in his book, Magnetic Capital. Want more wealth? Visit: 1) www.GetRichEducation.com to grab our free newsletter. 2) www.GREturnkey.com for actionable turnkey real estate investing opportunities. Listen to this week's show and learn: 00:48 How can "real estate syndication" make you wealthy? 03:59 Investing in the U.S. vs. Canada: the biggest difference. 05:28 Urban investing: "Buy on the line. Move the line." 07:48 Infill development. 09:22 New construction and low inventory. 10:18 Example on a buy-and-hold million dollar building. 13:07 Urban areas: higher appreciation risk and reward? 17:31 Leading indicators of up-and-coming areas. 19:58 Rent control discussion. 24:33 Raising capital from others. 29:26 Establishing trust, track record, compelling opportunity, alignment. 34:53 "Borrow" someone else's track record. 40:19 Give yourself a promotion. Resources Mentioned: VictorJM.com NoradaRealEstate.com HighlandsMortgage.com MidSouthHomeBuyers.com GetRichEducation.com GREturnkey.com

#137: GRE listener Eric Pratt is today's guest. His passive monthly RE income is $3,600, soon to be $4,600. He bought turnkey income properties: 6 in Memphis, 1 in Atlanta, and soon expects to close 1 in Birmingham. He carries 7 mortgages. Eric is in his 40s, married, and is a police officer in Anchorage, Alaska. Learn about how GRE has changed his life, and learn about one speed bump that he hit on the way. This show has been on the air every week for more than 2 ½ years and it's changing lives. It's time to hear your story. Keith tells you how you can be on the show with him. Keith brings you today's show from Anchorage, Alaska. Want more wealth? Visit: 1) www.GetRichEducation.com to grab our free newsletter. 2) www.GREturnkey.com for actionable turnkey real estate investing opportunities. Listen to this week's show and learn: 04:23 Today's guest, Eric, had never heard of a podcast before learning about GRE. 06:04 Growing up in a financial family: Dad - banker; Stepmom - accountant. 09:34 Eric's first investment property was bought in Las Vegas in 2001. 14:20 Eric used to invest out-of-state without knowing about turnkey RE investing. He previously tried to put the "team ingredients" together himself. 15:25 His first turnkey investment property was bought in Memphis in 2015 through Mid South Home Buyers. 16:45 Some think turnkey real estate investing is too good to be true. 19:01 Guest's former mission to be debt-free changed to becoming financially-free. 24:40 Paid 6 ways at the same time? 26:26 Eric self-manages one property. Lesson learned: buy from a provider with in-house management rather than third-party management. 29:17 Paying $61,000 cash to own a Memphis property free-and-clear. 31:12 Carrying 7 mortgages. 32:06 Offering full asking price on turnkey properties? 33:21 Eric's passive monthly RE income is $3,600, expects it will soon be $4,600. 38:23 He has an employer pension. 39:27 The Abundant Mindset. 41:32 Birmingham, Alabama's surprising revitalization. 43:50 Eric leaves his personal e-mail address for you: pratts@ak.net Resources Mentioned: MidSouthHomeBuyers.com Birmingham Turnkey Property NoradaRealEstate.com HighlandsMortgage.com GetRichEducation.com GREturnkey.com Guest E-mail: pratts@ak.net