#131: Ken McElroy is our guest today. He’s the Rich Dad Advisor for real estate. Why does your tenant move out, and what will keep them inside your rental property? He tells us what tenants want today and how rental trends have changed over the last 5, 10, and 20 years. With over 10,000 units in multiple markets in his company’s control, he knows. In many markets, rent increases are not coming as easily as they were a few years ago. Ken & I discuss the best ways to increase income on your property. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive turnkey real estate investing opportunities. Listen to this week’s show and learn: 02:12  Polling tenants at move-out to determine why they moved. 05:05  Tenants are more mobile today. They go where jobs are. 06:40  Service level to tenants is more important today - fitness center, activities directors, shuttle vans, and even bartenders. 07:35  Living spaces of 200 - 300 square feet in urban cores and college towns. 09:44  Why can’t tenants pay more rent? Discussion on negative rent growth. 13:52  High rents can be a threat to public safety. 22:20  Why did your tenant move out? 28:03  School districts, crime. 30:19  Forecasting infrastructure improvements and how that boosts local real estate. 34:47  Websites that Ken uses for real estate market research. 37:22  Increasing your Net Operating Income - best ways, dumbest ways. 40:49  Pushing rents too high. 44:12  Ken feels real estate is still the best asset class to be invested in. But he tells us to exercise caution in a hot market. 46:22  Catch up with Ken at KenMcElroy.com  Check out his great video series, KenFlix. 47:53  A lot of people are going to lose everything in the next five years. Resources Mentioned: KenMcElroy.com Nmhc.org | Uli.org NoradaRealEstate.com TheRealAssetInvestor.com/GRE HighlandsMortgage.com MidSouthHomeBuyers.com GetRichEducation.com  

#130: The U.S. housing market shortage is on. Inventory is getting squeezed in many markets. Keith discusses. Jordan Goodman is our guest today. He’s “America’s Money Answers Man” and you’ve seen him answer money questions across the decades on The View, Fox News Network, CNN, CNBC, the CBS Evening News, Money Magazine, and terrestrial radio. He’s also authored 13 books on personal finance. Jordan tells us: how you can use leverage, how to create a cash flow stream by making a real estate loan to others, what Donald Trump means to real estate investors, about the future of interest rates, consumer sentiment, and more. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive turnkey real estate investing opportunities. Listen to this week’s show and learn: 01:22  The U.S. housing squeeze is on. For example, in Seattle, one in only 263 homes is for sale. 04:24  Bubbles. 07:02  Jordan Goodman interview begins. 09:27  Leverage: dolphins vs. sharks. 16:28  Build an income stream of 8% cash flow by being a lender on commercial real estate. 27:18  Donald Trump and the real estate market.   31:21  The U.S. real estate shortage. 33:10  Interest rates. 34:27  Consumer sentiment and jobs. 37:32  Banks are not paying more on deposits, even with higher interest rates. 39:40  Reclaim your lost escrow dollars by using these websites. Resources Mentioned: MoneyAnswers.com NoradaRealEstate.com TheRealAssetInvestor.com/GRE HighlandsMortgage.com MidSouthHomeBuyers.com GetRichEducation.com CommercialRealEstateIncomeFunds.com VerifyMyMortgage.com VerifyMyEscrow.com Article: 10 U.S. Cities With Biggest Housing Shortages  

#129: Dallas, TX could be the strongest real estate market in the entire U.S. as it keeps experiencing staggering business, job, and population growth. In fact, Forbes has named Dallas, TX as the #1 place to invest in 2017. But if you live outside Dallas-Fort Worth, how do you capture the upside yourself? With turnkey single-family income property. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive turnkey real estate investing opportunities. Listen to this week’s show and learn: 02:50  Texas has had great economic fortune for decades. Geopolitical Strategist Peter Zeihan tells us that this will continue. 04:18  Dallas-Fort Worth’s astounding population growth. 05:16  Why to invest in single-family homes rather than apartment buildings. 09:55  In a hot market, have a relationship with a team that can get housing inventory. 12:03  Competing for housing inventory. Targeting 7%+ cash-on-cash return. 15:31  Product type: SFHs with minimum of 3 BR, 2 BA, 2-car garage. 17:14  Don’t “over-improve.” Examples. 20:30  What type of person invests in turnkey real estate? Busy people. 22:38  In-house property management. 25:58  The economies of scale advantage with contractors. 28:30  Averages: rent income $1,600 and sale price $170,000. 29:51  Investors have one point of contact. 31:18  Management companies propose solutions, not just pose problems. 32:30  April 21-23: Attend the upcoming Dallas Income Property Tour & Workshop. 34:45  High tenant quality. 36:05  Positive cash flow. Resources Mentioned: GetRichEducation.com/Texas Blog Article: Triple Your Equity In Five Years TheRealAssetInvestor.com/GRE HighlandsMortgage.com MidSouthHomeBuyers.com GetRichEducation.com  

#128: These five money myths are killing your wealth potential. Don’t believe: 1) Get your money to work for you. 2) Compound interest creates wealth. 3) Be debt-free. 4) Home equity has a rate of return. 5) Live below your means. All five of the above are money mindset myths. If you believe them, you won’t create wealth. Real estate investing cures all five money mindset myths. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive turnkey real estate investing opportunities. Listen to this week’s show and learn: 02:07  Your brain is programmed to survive rather than thrive. 06:10  Why dispelling mindset myths is important. 10:46  Other people’s money. 16:23  Example of financial leverage. 17:39  Don’t be debt-free; be financially-free. Examples. 24:45  Inflation-hedging. 26:15  Compound Interest vs. Leverage. 28:41  “Millionaire.” Who cares? 31:12  Equity has zero rate of return. It’s unsafe and illiquid. Examples. 35:25  Equity transfers. 37:29  Should you pay off your primary residence? 39:26  Lawsuits. 40:28  Myth: “Live below your means.” 43:10  Don’t budget. 44:32  Question your answers. 45:49  The power of being bold.   Resources Mentioned: PassiveRealEstateInvesting.com NoradaRealEstate.com TheRealAssetInvestor.com/GRE HighlandsMortgage.com MidSouthHomeBuyers.com GetRichEducation.com  

#127: You are invested in a zero-return investment. Home Equity is unsafe, illiquid, and its rate of return will always be zero. Then why are you so heavily invested in home equity? We discuss strategies to turn this around, and use home equity as a wealth-builder for you. Making extra mortgage principal payments on one’s home is usually a terrible idea. Striving to be debt-free often prevents one from becoming financially-free. You'll see why. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive turnkey real estate investing opportunities. Listen to this week’s show and learn: 03:57  ROI. 04:28  Turnkey income property inventory keeps tightening. 06:33  You have money that you didn’t know you have. 07:35  Your value as a listener. 12:04  How much of a zero-return investment would you want? 13:44  Debt-Free vs. Financially-Free. 17:01  Property equity is unsafe, illiquid, and has zero rate of return. 20:18  Equity transfers. 24:46  Making extra principal payments on one’s home. 26:55  “Feelings.” 27:32  30-year fixed vs. 15-year fixed amortizing mortgage loans. 34:56  Control. 41:51  HELOCs.   Resources Mentioned: NoradaRealEstate.com TheRealAssetInvestor.com/GRE HighlandsMortgage.com MidSouthHomeBuyers.com GetRichEducation.com  

#126: Robert Kiyosaki is our guest today. He’s the #1 Selling Personal Finance Author Of All-Time. He’s authored numerous titles, including the mega-popular “Rich Dad, Poor Dad”. He leads the Rich Dad Company, whose mission is “Elevating the financial well-being of all humanity.” Don’t work for money. Let your assets produce money for you.   Kiyosaki’s enduring mantras include: The Rich Don’t Work For Money | Your House Is Not An Asset | Don’t Live Below Your Means, Expand Your Means | Savers Are Losers, Debtors Are Winners and countless other influential quotes and statements. Keith hosts today’s show from Anchorage, Alaska. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive turnkey real estate investing opportunities. Listen to this week’s show and learn: 02:12  The power of the book “Rich Dad, Poor Dad”. 04:23  Robert Kiyosaki interview begins. 05:12  Kiyosaki: Our school system is corrupt. 07:36  The Communist Manifesto (1848) by Karl Marx and Friedrich Engels. 10:16  If you own enough production, you won’t work for money. 11:16  Dying capitalism in the United States. 13:05  “Don’t live below your means. Expand your means.” 15:25  Kiyosaki adds 300-400 properties to his portfolio annually. 16:39  “Printing money on demand.” 18:17  Oil prices. 21:21  You Are The President Of Your Own Life. 24:28  Before buying real estate, consider the amount of debt you can get. Net Operating Income. Consumer Debt vs. Investor Debt. 26:44  20th Anniversary Edition of Rich Dad, Poor Dad. 29:18  The rich, middle class, poor. Concern about a crash. Debt and taxes. 30:32  What can the everyday person do? 31:04  Kiyosaki: We’re going into a depression. 34:45  Weinhold on debt. 36:10  Eight old rules of wealth. It’s faulty financial programming. 39:35  Ripping 401(k)s. 41:16  Telling yourself the truth. 41:53  Donald J. Trump. Keith gives a political opinion. Resources Mentioned: RichDad.com Amazon: Rich Dad, Poor Dad NoradaRealEstate.com TheRealAssetInvestor.com/GRE HighlandsMortgage.com MidSouthHomeBuyers.com GetRichEducation.com

#125: Your passive income streams are durable to the extent that they’re diversified. Specialty agriculture can realize spectacular gains as the world’s amount of arable land diminishes. At the same time there are more mouths to feed. There is a massive undersupply of fine cacao for the world's strong market demand. Chocolate is derived from the cacao tree. Quality cacao thrives in the stable Central American nation of Belize. Finished products include gourmet chocolate and cacao butter. You can realize a cash flow stream from the annual harvest of the cacao beans, and it's all managed for you. Learn about the returns, risks, cacao supply vs. demand, and more. Keith hosts today’s show from Anchorage, Alaska. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive turnkey real estate investing opportunities. Listen to this week’s show and learn: 01:40  Durable wealth means having multiple diverse income streams. 03:12  Cacao (chocolate) farm investing in Belize. 05:00  Panama coffee farm parcel investing update. 07:01  Cacao farming business model. 09:11  Why Belize was chosen for cacao crops. 11:21  Supply vs. Demand for fine-flavored cacao. 16:05  Chocolate is a proven product with sustainable demand. 22:20  What a cacao farm looks like. 28:29  Risks. 31:48  $24,500 per half-acre parcel. Investors need not be accredited, no loans, 11-12% cash return expected over time (not including potential land appreciation). IRA funds eligible. 36:13  Exit strategy. 38:42  Proven product, stable government, secure, turnkey managed, social benefit. 41:53  Attend a cacao farm tour. 43:43  Cacao trees produce fruit regardless of how financial markets perform. 44:40  Nationalism. 45:50  Provider track record, and retaining local labor. 48:20  Learn more at GetRichEducation.com/Chocolate   Resources Mentioned: GetRichEducation.com/Chocolate NoradaRealEstate.com TheRealAssetInvestor.com/GRE HighlandsMortgage.com MidSouthHomeBuyers.com GetRichEducation.com  

#124: Why mobile home parks of all investment vehicles? Guest Kevin Bupp tells us by explaining why they’re so misunderstood and he helps dispel stigmas. Mobile home park (MHP) residents stay in their home longer because they actually own the mobile home. Therefore, they also take better care of their place. As the investor, you rent the lot to the tenant. This also makes MHPs easier to manage. Keith brings you today’s show from Bridgetown, Barbados. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive turnkey real estate investing opportunities. Listen to this week’s show and learn: 03:02  There is a stigma with mobile home parks (MHPs). Here’s how that can actually benefit you. 05:04  Dealing with municipalities. 07:55  Management of MHPs. 10:31  Lack of competition. 14:07  Community aspect. 20:40  Utilities. 25:32  Financing for MHPs. Owner financing is more common than bank financing. 29:02  How do you find a mobile home park for sale? 33:29  Your Return On Time Invested. 37:24  Syndication opportunity. 38:10  Mistakes to avoid. 42:39  In two weeks, Robert Kiyosaki returns here to the show.   Resources Mentioned: KevinBupp.com MobileHomeParkAcademy.com Loopnet.com MobileHomeParkStore.com NoradaRealEstate.com TheRealAssetInvestor.com/GRE HighlandsMortgage.com MidSouthHomeBuyers.com GetRichEducation.com

#123: What if the value of your income properties falls 40% vs. the value of stock falls 40%? We explore the strategic, emotional and practical side of this. Learn how you stop losing money by paying the opportunity cost of not being invested strategically. How to use desktop methods to research the right properties and markets. Keith is invested in a real estate market where there’s a recession. Here’s how he deals with it. Keith brings you today’s show from San Juan, Puerto Rico. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive turnkey real estate investing opportunities. Listen to this week’s show and learn: 02:50  Most real estate investors buy property for convenience, not strategy. 05:34  Reading about 3-D printing before investing in Memphis real estate (really?). 07:17  Use these desktop methods to research property. 09:12  When your stocks fall 40%, a story of what happens tactically and emotionally. 17:20  There have been 25 stock bear markets since 1929. 18:27  Corporate Direct for asset protection. 21:58  The mortgage meltdown of 2009. 23:31  What happens if you income property portfolio fell in value by 40%? 26:56  In a stock meltdown, companies disappear. In a real estate meltdown, you still own land, brick, concrete, wood, copper wire, and glass. 28:23  Warren Buffett’s Rule No. 1: “Don’t lose money.” 29:07  Keith owns income property in Anchorage, Alaska, and there’s a recession there. 31:34  Submarkets and business sectors. 34:58  Invest in 3-5 different metros. 37:11  Home inspections. Resources Mentioned: WeGoLook.com NoradaRealEstate.com TheRealAssetInvestor.com/GRE HighlandsMortgage.com MidSouthHomeBuyers.com GetRichEducation.com  

#122: How do you invest in resort property? Why would you want to? Ambergris Caye is Belize’s largest island. It has been named Trip Advisor’s #1 Island In The World two years in a row. Learn why. Ambergris Caye, Belize has world-class water sports, the longest living reef in the world, stable banking, is close to the U.S., English is the official language, and housing demand there far outstrips supply.   Belize has business-friendly government officials and strong property ownership rights. A new construction resort development project on Ambergris Caye promises to help ease the supply constraint. There is an investment opportunity for you here. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive turnkey real estate investing opportunities. Listen to this week’s show and learn: 02:00  Serving resort-goers often means serving Baby Boomers. 04:25  What’s riskier: investing outside your home nation, or having everything tied up in one nation’s economy and currency? 06:36  Belize is closer to more Americans than Hawaii. Airlines are adding passenger seats to Belize at an astonishing clip. 07:58  Why resort investing? Why Belize? 11:30  Belize is Central America’s only nation where English is the official language. 15:14  Ambergris Caye’s transition from a sleepy fishing village to world-renowned destination. 17:15  The large barrier reef is just hundreds of yards off the island. This attracts sportfishing, snorkeling, and diving. It also acts as a natural hurricane buffer. 21:37  Mahogany Bay Village on Ambergris Caye. 24:00  Belizean wood products and Belizean labor are utilized to construct the project. 24:38  What’s the opportunity for the investor? 26:58  Lack of financing is a problem. It’s also an opportunity. 30:08  For an investor, this investment is passive. Professional management is in place. Low property tax, low rental income tax. 31:16  Imagine owning income property that you can enjoy visiting and using. 33:10  Investors can expect double-digit returns. Hotel management fees are low due to economies of scale. 34:22  This resort is so well thought-out that Hilton recently came in and branded it. Hilton's due diligence has validated the development. Their marketing power promises to be transformational. 36:13  Your opportunity to visit Ambergris Caye, Belize for a real estate field trip. 40:17  REVPAR means revenue per available room. 42:11  Locally-sourced development upholds the culture.   Resources Mentioned: TheRealAssetInvestor.com/GRE NoradaRealEstate.com MidSouthHomeBuyers.com GetRichEducation.com  

#121: What’s your personal “Money Operating System”? Hilary Hendershott is the personal finance expert on the NBC Evening News in California’s Silicon Valley. An MBA, CFP, and TEDx Speaker, she’s an an authority on money strategy and mindset. Money has an infinite supply; then why do most people have a limiting belief about money? Also, we discuss how men and women approach money differently. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive turnkey real estate investing opportunities. Listen to this week’s show and learn: 01:05  Rising mortgage interest rates. 05:00  Hilary Hendershott interview begins. 06:03  Limiting beliefs about money. 08:47  Money isn’t real; it’s a concept, an abstraction, a promise. 11:43  Lottery winners that go broke. 13:44  Common “Money Operating Systems”. 18:18  Does society spend too much time emphasizing money? 20:00  Men vs. women and money. 26:04  Real estate investing for cash flow. 28:22  Tax depreciation on rental property. Avoiding depreciation recapture. 31:38  “Money is the root of all evil.” Really? Keith analyzes.   Resources Mentioned: HilaryHendershott.com NoradaRealEstate.com TheRealAssetInvestor.com/GRE MidSouthHomeBuyers.com GetRichEducation.com MortgageNewsDaily.com

#120: One of the few coastal markets where you can find cash flow is Jacksonville, Florida. Fortune 500 companies, the military, and the seaport support this market, not tourism. Learn about investing in these single-family homes with two and three-year leases, how unscrupulous management companies can manipulate you, and how to protect your cash flow. Learn more at GetRichEducation.com/Jax Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive turnkey real estate investing opportunities. Listen to this week’s show and learn: 00:54  Don’t follow money. Make money follow you. 03:31  Have a sound strategy. Don’t “throw darts at a map”. 04:02  In real estate investing, your team of pros (Property Manager) could be more important than the geographic market itself. 05:01  Gregg Cohen interview begins. 06:29  Cash flow in a coastal market? 08:04  Population growth, business sectors and industry. Amazon. 11:31  Jacksonville is younger than the rest of Florida. Age 35 vs. 42. 12:27  Panama Canal expansion and Jacksonville. 14:59  Property Management: How some companies manipulate you with 1-year leases. 20:46  2-year and 3-year leases as “the norm.” 24:42  Renovation & management companies have the same ownership. Communication. 29:15  How to protect your cash flow amount. 30:40  3 bedroom, 4 bedroom, and 5 bedroom single-family homes. Screening tenants. 33:54  Florida Landlord-Tenant Law. 35:16  Property improvements. 38:10  Hurricanes and Jacksonville. 40:05  Rent-to-price ratio. 41:04  Minimum investment to get started, current inventory. 42:17  As a new client, provider pays up to $1,000 for your Jacksonville trip. 45:00  Our guest wrote three great Jacksonville turnkey RE investing reports you can get at: GetRichEducation.com/Jax   Resources Mentioned: GetRichEducation.com/Jax NoradaRealEstate.com TheRealAssetInvestor.com/GRE MidSouthHomeBuyers.com GetRichEducation.com  

#119: Harry Dent is our guest today. He’s among the world’s best-known financial prognosticators. Does Harry still think the Dow Jones will fall to 6,000 points this year? Dent answers questions most won’t: Where are real estate prices headed? Oil? Interest rates? Stock market? Inflation vs. Deflation? Gold? GDP growth? Author, Economist, Demographer Harry Dent’s latest book, released this month, is called “The Sale Of A Lifetime: How The Bubble Burst Of 2017 Can Make You Rich”. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive turnkey real estate investing opportunities. Listen to this week’s show and learn: 01:28  Harry Dent likes making predictions. People listen because the depth of his research is so extensive. 05:16  Harry believes the stock market will trend up until the summer, then a potential crash begins. 10:30  Growth that the U.S. experienced in prior decades won’t return due to demographics. 12:53  Stock market bubble catalysts / indicators: Demographics, Trump, bonds. 15:30  How China’s overbuilt infrastructure affects you & the world. 19:42  Can Trump control demographics? 24:00  Dent: Why interest rates are headed up, then going lower than ever. 28:15  Which real estate will falter? Which will do well? 30:57  Dent: Mortgage interest rates will peak this year at 4% to 4.5%, bottoming around 2020. 33:07  Dent: In a downturn, positive cash-flowing residential real estate looks great. 33:53  Dent: Oil prices won’t go over $62. Could fall to $20-$30 again. 35:45  Dent: Deflation more likely than inflation. 5-10% inflation is impossible. Gold comments. 39:05  What can you do to position yourself  for prosperity? 44:30  Your demography is your destiny.   Resources Mentioned: HarryDent.com NoradaRealEstate.com TheRealAssetInvestor.com/GRE MidSouthHomeBuyers.com GetRichEducation.com  

#118: What’s your risk tolerance? Keith discusses risk with mortgage loans for 1-4 unit properties, then for apartment building loans. Later, Marco Santarelli joins Keith to tell you why they believe that real estate is the best asset class compared to stocks, businesses, commodities, and cash. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive turnkey real estate investing opportunities. Listen to this week’s show and learn: 01:37  Should you get a 30-year mortgage loan or 15-year? 05:02  Risk with apartment building loans - balloon terms, interest-only loans, prepayment penalties. 11:31  Keith’s personal habits and faults. 12:58  Get Keith’s free wealth-building newsletter is at GetRichEducation.com  Read Keith’s blog at GetRichEducation.blog 18:51  Marco Santarelli interview begins. “Why real estate?” 22:03  Real estate provides five profit centers at the same time. 23:00  What is an asset class? 25:24  Paper assets. 27:08  Stock dividends, options trading. 28:59  Commodities. 30:43  Investing in businesses. 34:18  Real estate investing. 35:32  Liquidity, control, passivity, stability. 37:20  Cash’s importance for emergencies, opportunity to fund a deal.   Resources Mentioned: NoradaRealEstate.com PassiveRealEstateInvesting.com TheRealAssetInvestor.com/GRE MidSouthHomeBuyers.com GetRichEducation.com  

#117: Surprisingly, Alabama is one of the most economically forward-looking U.S. states. Here’s why, and here’s how you can profit from this at the right time in the business cycle by investing in Birmingham income property. Birmingham is Alabama’s largest city amidst a growing population, diverse economic sectors, and a business-friendly climate. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Find turnkey real estate investing opportunities. Listen to this week’s show and learn: 01:01  Alabama is one of the most economically forward-looking states in the U.S. 03:44  Geopolitical Strategist Peter Zeihan’s remarks about Alabama’s top ability to attract foreign capital. 05:22  Disloyalty to markets. 06:14  Don’t be a flipper or landlord. Be an investor. 08:00  Maureen McCann interview begins; Birmingham’s business sectors. 10:14  The right Birmingham submarkets and neighborhoods. 12:17  Average $104,000 purchase price, $1,050 rent, 3 BR/2 BA, 1,500 sf. 15:55  Renovation extent. 18:41  Tenant retention. 19:39  Property manager communication with you. 22:10  When you close, property is occupied 96% of the time. 25:12  Turnkey Provider and Property Manager all in-house. 27:44  Tenant screening. 29:29  Alabama as a landlord-friendly state. 30:28  Geographic pitfalls? 32:32  Choosing the right team. 34:45  Minimum investment to get started. 35:22  Learn more at GetRichEducation.com/Birmingham 38:00  “VIMTM.”   Resources Mentioned: GetRichEducation.com/Birmingham NoradaRealEstate.com TheRealAssetInvestor.com/GRE MidSouthHomeBuyers.com

#116: Rich Dad Advisor Tom Wheelwright says that the U.S. could become a tax haven. We discuss other potential tax changes that President-Elect Donald Trump will make. Keith also recaps what happened in financial markets this year: real estate, stocks, gold, inflation, dollar index, interest rates and more. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Find turnkey real estate investing opportunities. Listen to this week’s show and learn: 01:42  This year: real estate up, stocks up, gold & silver up, dollar index even, interest rates up, inflation up, autonomous cars hit streets, Chinese yuan into IMF, Brexit, Trump election. 06:36  Robert Kiyosaki and Harry Dent predictions. 09:48  Donald Trump parallels with Ronald Reagan. No individual income tax reform in first term. 12:53  Tax rates won’t go up next year. Oil & gas tax benefits will be retained or expanded. 14:11  Carried interest. 17:59  Trump’s company lobbied for the “real estate professional” tax designation.   21:28  Limit on itemized deductions coming? 23:32  Expect U.S. corporate taxes to be lowered down from 35%. 28:25  Trump wants a 15% “business tax rate.” Amnesty. 30:03  Why is the U.S. successful with such high corporate tax rates?  31:10  Tom Wheelwright: The U.S. could become a tax haven! 32:37  How will we pay for tax reduction? Not growth, but even more debt. 34:08  Financial crash implications. 36:52  Here’s how you can act now. 40:37  Keith: Let’s lower tax rates, and increase the number of taxpayers.   Resources Mentioned: TaxFreeWealthAdvisor.com or 866-467-5809 GetRichEducation.com NoradaRealEstate.com TheRealAssetInvestor.com/GRE RidgeLendingGroup.com RichDadAdvisors.com  

#115: Obtaining your RE license isn’t that difficult in many states. Would this help you land deals for income property? Yes, and there are tons of other benefits...and drawbacks. Kevin Cross of Foundations Real Estate Experts is a savvy real estate investor, licensee, and former President of the Anchorage Association of Realtors. He tells us the advantages and disadvantages of getting your RE license. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Find turnkey real estate investing opportunities. Listen to this week’s show and learn: 02:06  Keith likes BombBomb.com video-e-mail service and the Blinkist.com condensed reading app. 08:11  How can getting your RE license help you get into the deal flow? 12:20  Saving yourself the agent commission - and using that as a down payment. 15:06  The benefits you realize as an agent when you build a network of home inspectors, HVAC companies, roofers, etc. 18:27  When you sell property, act as your own agent. Referral fees. 24:59  Licensing requirements - educational hours, exam, licensing fees. Often $3,000 - $5,000 out-of-pocket to start. 26:55  Difficult to be a “part-time” agent. 28:48  You don’t get paid for 90 days. 31:16  Fiduciary responsibility and disclosure. 36:42  90% of sales are made by 10% of agents. 37:11  Do you split your commission with your broker? Must you have an office there? 41:06  After marketing fees and dues, agents earn about 1.5% per transaction.   Resources Mentioned: GetRichEducation.com NoradaRealEstate.com TheRealAssetInvestor.com/GRE RidgeLendingGroup.com AlaskaREX.com BombBomb.com Blinkist.com

#114: Your mental map is stimulated today as we discuss what geographies will be prosperous for real estate investors. Geopolitical Strategist Peter Zeihan of Zeihan.com takes us on a virtual cross-country journey economically, geographically, and demographically. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Find turnkey real estate investing opportunities. Listen to this week’s show and learn: 03:46  The Mississippi River System promotes continental commerce. Luckily, it’s superimposed atop the U.S. agricultural belt. 06:47  Demographic luck. 13:54  Capital flight to “Gateway Cities”: Toronto, Montreal, Vancouver, Santa Monica, San Francisco, Seattle, New York City, and Miami. 17:38  “Reinvented Cities”: Oklahoma City, Austin, Salt Lake City, Charleston (SC). 20:05  Migration to low-cost-of-living cities. 25:27  New England. 26:58  New York. 28:42  Pennsylvania. 31:44  New Jersey through DC to the Carolinas. 34:22  Georgia. 36:21  Florida. 38:12  Alabama. 40:53  Tennessee. 43:12  Great Lakes Region. 44:11  Missouri. 45:16  Arkansas & Louisiana. 46:58  Texas. 50:01  Upper Great Plains. 51:07  Denver and Salt Lake City. 53:16  Arizona and Nevada. 56:53  California. 59:33  Washington and Oregon. 62:47  Alaska and Hawaii.   Resources Mentioned: Zeihan.com TheRealAssetInvestor.com/GRE CorporateDirect.com RidgeLendingGroup.com GetRichEducation.com

#113: You can be a lender instead of a borrower with Mortgage Note Investing. Real estate is your collateral, securing your loan. Why would you want to give a loan to someone that can’t qualify for a bank loan? David Campbell from Hassle-Free Cash Flow Investing tells us why and how. 9-10% cash-flowing rates of return are common. Compared to buy-and-hold RE investing, this is more liquid, less risky, and incurs lower transaction costs. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Find turnkey real estate investing opportunities. Listen to this week’s show and learn: 07:05  Why now is a good time to move chips from the equity side to the debt side. 10:48  Mortgage Note Investing is also similar to terms like “Hard Money Lending,” or “Private Lending.” Also, discussion of Mortgage vs. Deed Of Trust. 15:45  Buy notes where the borrower has 20-25%+ equity in the property. 23:02  Mortgage Notes provide higher cash flows, less risk, more liquidity, lower transaction costs compared to owning real property. 26:47  Example on a $75,000 mortgage. 34:50  Use your IRA or HELOC to create arbitrage. 36:38  Knowing good from bad, and avoiding fraud. 43:14  Turn your equity into cash flow.   Resources Mentioned: HassleFreeCashFlowInvesting.com/GRE TheRealAssetInvestor.com/GRE CorporateDirect.com RidgeLendingGroup.com GetRichEducation.com

#112: Two undercover thieves are robbing you of your dreams. They’re stealing your prosperity both now and in the future. This is why people think they’re “getting ahead,” but they’re falling behind. Learn about the problems with 401(k)s and inflation - it’s even worse than you think. Learn how to get on top of this and get empowered today. Keith brings you today's show from Dallas, TX. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Find turnkey real estate investing opportunities. Listen to this week’s show and learn: 02:33  Be unusual. 03:33  A terribly naive statement: “Socking away money in your 401(k) will make you a millionaire.” 07:08  401(k) saving is misdirected. It’s herd mentality pumped up by a billionaire-dollar Wall Street marketing campaigns. 09:40  History of the 401(k) and Ted Benna, creator of the Plan. “Salary Reduction Plans.” 13:35  Dollar-for-dollar matches in 401(k)s. 17:12  A 401(k) is a ZERO cash flow plan. 24:24  The secret monthly bill that you don’t know that you’re paying. 26:57  Real ROI vs. Nominal ROI: How “winning” is really losing. 28:38  Taxation is not adjusted for inflation. 30:40  The first step to solving your problem is recognizing that there is one.   32:04  Your real estate cash flow increases faster than inflation over time. See at: GetRichEducation.com/videos     Resources Mentioned:   TheRealAssetInvestor.com/GRE   CorporateDirect.com   RidgeLendingGroup.com   GetRichEducation.com   Ted Benna and 401(k) history

#111: Looking for passive income but can’t find an attractive real estate deal in today’s climate? Invest with a trusted, savvy investor that’s an expert in identifying profitable apartment building deals for others. Dave Zook, Founder Of The Real Asset Investor, has a remarkable track record of providing reliable returns to investors. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Find turnkey real estate investing opportunities. Listen to this week’s show and learn: 05:05  Entering real estate for tax mitigation reasons. 07:40  Rich Dad influence. 09:15  Many wealthy people are willing to invest in 1% yield CDs! 11:26  Planting the seeds of real estate syndication. How to stay in the “deal flow.” 12:57  The people are more important than the product. Which people are “real” and which are not? 15:45  Multifamily property in Memphis. 20:03  Forced appreciation. 22:31  Dave is successful because he considers his investors’ need, not his need. 24:08  Value-add property improvements include a high-tech video surveillance system. 26:26  Dave’s investors benefit in ways that direct investors don’t. 28:38  Dave puts his own “skin-in-the-game” alongside his investors. He has a vested interest in property performance. 30:05  Investors paid quarterly: 8-11% Cash-On-Cash Return. High teens to 25%+ Internal Rate Of Return. 31:44  Taxes. Accelerated depreciation (from Cost Segregation) gets passed along to each investor.    33:41  Annual investor barbecue. 35:03  Win a free real estate field trip to Memphis or Belize at www.TheRealAssetInvestor.com/GRE 36:14  Advantages to investing in a trusted expert’s syndication.   Resources Mentioned: TheRealAssetInvestor.com/GRE CorporateDirect.com RidgeLendingGroup.com GetRichEducation.com

#110: Wealth and fulfillment are matters of your personal choice. "Being Wealthy Is A Choice" is something that I didn’t believe when I first read it in a Robert Kiyosaki book 15 years ago. Now, I know that it’s true. Learn how to choose wealth. Be bold. Live where you want to live. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Find turnkey real estate investing opportunities. Listen to this week’s show and learn: 02:12  You need to believe that being wealthy is a choice. 03:26  You’re unfulfilled because you spend too much time at your job.   06:20  Live where you want to live   09:09  Be bold.   13:14  Disable notifications.   13:53  Associate with people whose future is bigger than their past.   15:17  Fear and doubt destroy more dreams than failure ever does.   16:24  Die with memories, not dreams.   22:52  You’re paid five ways at the same time with RE investing.   30:05  Risk.     Resources Mentioned:   Article: The 5 Ways You’re Paid In RE Investing   CorporateDirect.com   NoradaRealEstate.com   RidgeLendingGroup.com   GetRichEducation.com

#109: Memphis, Tennessee is the longtime King Of Real Estate Cash Flow. Mid South Home Buyers in Memphis is the turnkey company with smart systems and great service. Learn how they got their advantage. Founder Terry Kerr and Investment Coordinator Liz Nowlin tell us what makes Memphis unique. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Find turnkey real estate investing opportunities.   Listen to this week’s show and learn:   02:44  Return From Equity (RFE) and Return On Equity (ROE) are two different things.   06:18  Equity positioning is key to your investing strategy.   07:18  Volatile markets vs. Stable markets.   10:23  Terry Kerr and Liz Nowlin interview begins.   12:15  Mid South Home Buyers manages 1,450 properties, 98%+ occupancy, 77%+ of tenants renew their leases.   14:28  Memphis is a distribution hub.   15:27  52% of Memphis residents rent rather than own.   17:33  Some turnkey providers “mark up” materials.   20:58  The best-renovated houses in Memphis: roofs, HVAC, kitchen, bathroom, electrical, plumbing, flooring, more.   23:48  Under-market rent amounts.   24:40  Warehousing of materials creates efficiencies.   25:49  Communication.   29:07  A larger pool of tenants to select from.     Resources Mentioned:   MidSouthHomeBuyers.com   CorporateDirect.com   NoradaRealEstate.com   RidgeLendingGroup.com   GetRichEducation.com

#108: Should your rent or own your primary residence? Consider feelings, equity buildup, control, leverage, personal cash flow, mobility, inflation, taxes, liquidity, opportunity cost, sunk costs, and much more. Innovative Advisory Group’s Kirk Chisholm joins Keith for the chat. Keith tells you how much his home is worth. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Find turnkey real estate investing opportunities.   Listen to this week’s show and learn:   02:55  Your home is not an asset.   08:51  Why throw away money on rent?   12:15  Rental “stigma.”   16:10  Liquidity.   17:50  Sunk costs like furniture, maintenance, amenity obsolescence.   20:14  Inflation, leverage, appreciation.   23:57  Three methods to help you determine to rent or buy.   27:51  Wider selection of homes to buy than rent.   30:41  Rent-To-Value Ratio.   34:08  Today’s low homeownership rates.     35:19  “Touchy feely things.”   39:31  Rent vs. Buy Calculator.   40:30  Keith’s home valuation and whether he rents or buys.   42:21  Be the second owner of a home.     Resources Mentioned:   InnovativeWealth.com/GRE   Kirk Chisholm’s Rent vs. Buy article   CorporateDirect.com   NoradaRealEstate.com   RidgeLendingGroup.com   GetRichEducation.com

#107: Rich Dad Advisor Garrett Sutton is our guest today. His firm, Corporate Direct, offers smart asset protection and simplifies what seems complex. Keith is back in Anchorage, AK for today’s show. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Find turnkey real estate investing opportunities. Listen to this week’s show and learn: 02:12  Rely on your team. You don’t need to know everything. 04:52  “12 Reasons It’s A Great Time To Be A Real Estate Investor.” 11:20  Garrett Sutton interview begins. 12:45  Charging orders. 14:48  States offer different protections. You can “borrow” from the best state’s protection. 17:05  Texas asset protection. 22:24  Protecting yourself when you own real estate in multiple states. 25:04  Equity stripping. 26:18  Why Garrett wrote his new book, Toxic Client. 28:12  “Entitlementia.” 31:24  Why many attorneys get asset protection wrong. 33:18  When Robert Kiyosaki was famously sued, Here's how Garrett protected him. 34:14  Corporate Direct’s affordable fees. $695, or $595 for GRE listeners.   Resources Mentioned: CorporateDirect.com Phone Corporate Direct 1-800-600-1760 Amazon: Toxic Client book Entitlementia.com NoradaRealEstate.com RidgeLendingGroup.com GetRichEducation.com

#106: With enough passive income to meet your living expenses, you can potentially quit your job. GRE’s Business Developer John Collins just quit his job. He tells us how it feels. Keith brings you the show from Ontario, Canada today. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Find turnkey real estate investing opportunities. Listen to this week’s show and learn: 02:38  How close are you to quitting your job? The PPY. 05:42  A metaphor about life being the journey, not the destination. 07:40  If the Dow Jones rises from 19,000 to 20,000 points, that’s NOT a gain! 10:41  With zero financial education, stocks are better than real estate. With some education, real estate is better. 12:08  Monthly property management statements. 15:50  The jet pilot. 19:12  GRE’s John Collins quit his job that paid $100K-$200K per year. 22:47  Overcoming fear of leaving the job. 24:32  Nothing dispels fear like education; social connections. 28:48  Altering your life structure. 32:35  Do you still know when it’s “Payday” at your employer? 36:40  Feel of the “corporate-ocracy.” 39:09  With more passive income, here’s how you’ll begin thinking differently than your co-workers. 41:15  Entrepreneurship is not for everybody. “Turnkey job.”   Resources Mentioned: Book: “Pivot” by Jenny Blake CorporateDirect.com NoradaRealEstate.com RidgeLendingGroup.com GetRichEducation.com

#105: Texas is a job creation juggernaut. Companies are being lured to Texas at a staggering rate by a business-friendly environment, low labor costs, and tax incentives. Texas is where you have some of the fastest-growing, most economically stable markets in the nation. Your durable rent income comes from tenant jobs. Learn about how to get into this market with an award-winning turnkey real estate investment provider at GetRichEducation.com/Texas. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Find turnkey real estate investing opportunities. Listen to this week’s show and learn: 03:29  Turnkey real estate investing defined. 04:44  Win-wins. 05:16  Why turnkey RE is not too good to be true. 09:30  A “Tenant Inspection Report.” 11:34  Carl Dean interview begins. 13:39  Carl moved to Texas because that’s where the jobs and better properties are. 15:05  Is the Texas RE market overheating? 18:02  Medical, financial sectors. More than just oil. 20:19  Migration into Texas. 21:53  Property taxes. 24:03  Price sweet spot of $140K-$250K. Rent-to-value ratios. 25:15  Lease duration and 5% rent increases each year. 29:40  Plano and Frisco often have price points that exceed the cash flow “sweet spot.” Fort Worth and south Dallas areas are generally better. 32:18  3 Bed / 2 Bath single-family homes are the minimum size criterion. 35:07  Exit strategy. 37:58  A “cheap” property isn’t enough for an investor. 38:50  Placing the right tenant. Minimum $1,200 rent amount. 41:04  How does Carl find his inventory? 45:17  Cash flow in Texas vs. other markets.   Resources Mentioned: GetRichEducation.com/Texas Trulia.com CorporateDirect.com NoradaRealEstate.com RidgeLendingGroup.com GetRichEducation.com

104: T.Harv Eker is our guest today. His mega-popular seminars and book, “Secrets Of The Millionaire Mind: Mastering The Inner Game Of Wealth” have transformed countless lives. Harv tells you: “Think Rich To Get Rich.” Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Find turnkey real estate investing opportunities. Listen to this week’s show and learn: 03:58  What do you really want in your life? 09:04  Thoughts > Feelings > Actions > Results 11:28  Your mind is set to a “Wealth Thermostat.” 14:37  How to change your Wealth Thermostat: 1) Awareness. 2) Understanding. 3) Reconditioning. 19:24  Your thought influences are: verbal conditioning, modeling, specific incidents. 20:35  Are rich people evil? 26:08  Is it ethical to make passive income? 32:15  How rich people specifically think differently than most people. 34:50  The Bible and wealth. 39:14  Dealing with your disapproving family members. 44:28  Seminars. 45:10  How to win the money game.   50:31  The importance of passive income is freedom. 55:20  “SpeedWealth” has 8 principles.   Resources Mentioned: Get SpeedWealth free at HarvEkerOnline.com/GRE Secrets Of The Millionaire Mind - book CorporateDirect.com NoradaRealEstate.com RidgeLendingGroup.com GetRichEducation.com

#103: Tom Wheelwright is a tax genius and regular contributor here. He’s the Founder and CEO of ProVision Wealth, which prepares Keith’s tax returns. TaxFreeWealthAdvisor.com Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Find turnkey real estate investing opportunities. Listen to this week’s show and learn: 04:04  Every dollar of your income is either taxable or not taxable. 08:08  How you are double and triple-taxed. 09:59  How tax depreciation works for real estate investors. 13:33  Cost segregation. 16:10  Why Donald Trump won’t release his tax return. 20:14  Here’s when you start a tax and asset protection strategy. 23:40  Holding your real estate in an LLC vs. “S” Corp. 25:55  IRS audits and taking deductions. 28:06  Garrett Sutton. 29:40  Picking the wrong lawyer. 32:48  Audit prevention: 1) Documentation. 2) Competent tax preparer. 3) Don’t talk to the IRS.   Resources Mentioned: TaxFreeWealthAdvisor.com or call 866-467-5809 CorporateDirect.com NoradaRealEstate.com RidgeLendingGroup.com GetRichEducation.com

#102: Hardship in your life changes your mindset, goal, timetable, and your investing risk tolerance. It changes how your think about your “Return On Time Invested.” Meet Ben Leybovich. Want more wealth? Visit www.GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Find turnkey real estate investing opportunities. Listen to this week’s show and learn: 03:39  Ben Leybovich Interview begins. 05:30  Ben is diagnosed with Multiple Sclerosis. 07:40  A process of elimination brings Ben to real estate investing. 11:08  Emotional investing. 14:20  Unlike Keith, Ben self-manages his properties. He uses Buildium.com. 16:40  ROI. 30:18  Cash flow rises faster than inflation when you’re leveraged. 32:45  Guesswork - rent escalators, fixed mortgage interest rate duration. 33:43  Real estate environment in 2016. 36:50  Ben likes buying “below market.” Underwrite to fundamentals. 39:26  Regional housing markets. 44:19  Ten years ago, U.S. housing prices were 24% higher than today, adjusted for inflation.   Resources Mentioned: JustAskBenWhy.com Buildium.com NoradaRealEstate.com CorporateDirect.com RidgeLendingGroup.com GetRichEducation.com

101: Geography is hugely important to real estate investing, economics, demography, and geopolitics. Peter Zeihan has a remarkable grasp on “location, location, location.” Learn the case for why the United States is not in decline. It will continue as a global superpower. Want more wealth? Visit www.GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Find turnkey real estate investing opportunities. Listen to this week’s show and learn: 04:01  The case that America is positioned to continue as a financial, agricultural, and industrial superpower. 06:05  Rivers. 08:38  Urban centers. 10:00  Geography shapes cultural isolation and integration. 13:16  Diffusion of ideas and technology. 14:55  3-D printing changing the geography of distribution. 23:35  Oil and petroleum. 30:28  Inflation vs. Deflation. 33:16  Japan. 38:23  Which countries will prosper. 42:14  Can another nation be like the United States? 43:05  U.S. Midwest, Texas looks great for growth. Alabama. 45:36  Gateway cities: San Francisco, Santa Barbara, New York, Miami and Seattle.   Resources Mentioned: Zeihan.com The Accidental Superpower (book) CorporateDirect.com RidgeLendingGroup.com NoradaRealEstate.com GetRichEducation.com  

#100: How to measure your wealth, a fun retrospective of the first 100 episodes, and a visit from GRE’s Business Developer John Collins. Want more wealth? Visit www.GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities. Listen to this week’s show and learn: 03:25  Let’s measure your wealth. Right now. Here’s how. 06:12  Favorite GRE mantras and catchphrases. 09:16  How to increase your wealth. Determine your “PPY” and convert equity to cash flow. 13:02  Traffic and commuting. Appreciate what you’ve already got while you expand. 17:58  A memorable look back at some noteworthy GRE episodes. 28:31  GRE’s John Collins appears. 33:07  Real estate’s advantages and five profit centers. 34:16  Awareness of outdated investment paradigms.   35:05  Nearly every dollar you spend is related to real estate. 37:40  If you wait until you’re old to be gratified, did you win? 38:50  Sabbaticals. 43:30  Exposure to fresh ideas multiplies you in “unthought of” ways.   Resources Mentioned: CorporateDirect.com RidgeLendingGroup.com NoradaRealEstate.com GetRichEducation.com

#99: Income property investors’ most commonly asked mortgage questions are answered by Ridge Lending Group President and CEO Caeli Ridge. There’s a lot of good news - the lending environment is loosening. www.RidgeLendingGroup.com Want more wealth? Visit www.GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities. Listen to this week’s show and learn: 02:39  This episode is about conventional financing of income property. 02:58  Next week’s milestone Episode 100 will be special. 04:57  Caeli Ridge interview begins. 07:54  Seasoning of funds. Gift funds. 10:27  Reserve requirements. 60% of your retirement funds qualify for reserves. 13:37  LLCs. Married couples. 15:10  How wife & husband can get 20 conventional loans. 17:17  Cash-out refinances: two types - standard and delayed. 26:05  DTI - Debt-To-Income Ratio. 50% maximum. 28:00  How your DTI changes when you add a rental property. 31:23  Credit score. 33:39  How the mortgage lending industry is loosening, not tightening. 34:25  It’s now up to 80% LTV for your first ten financed single-family income properties.   Resources Mentioned: RidgeLendingGroup.com CorporateDirect.com NoradaRealEstate.com GetRichEducation.com  

#98: Turn your $100K into $300K over five years with five turnkey income properties. See exactly how. Also, Cap Rate, Cash-On-Cash Return, and Equity Management are explored. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities. Listen to this week’s show and learn: 01:03  Special technique to help you get more rent for your property. 04:37  How to add value to a multifamily property via NOI and Cap Rate. 08:58  Cap Rates versus Cash-On-Cash Return. 11:51  Neighborhood character affecting valuation. 13:50  How to create wealth with five turnkey properties over five years. 21:24  Amazon lockers are changing apartment buildings and consumer behaviors. 25:02  Keith’s HELOC application was denied! Details. 27:02  Earthquakes. The return from home equity is zero. 31:29  The borrower is in control of a loan, not the lender. 32:22  Why “Live Below Your Means” Is Bad Advice. Resources Mentioned: CorporateDirect.com NoradaRealEstate.com RidgeLendingGroup.com GetRichEducation.com  

#97: Generate $36,000 of monthly income and $10,000 of monthly cash flow per single-family residence used as an Assisted Living Home (ALH). Demographics tell the story. Our aging population means there will be more need for senior housing. Gene Guarino of the Residential Assisted Living Academy tells us why and how to own and operate ALHs. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities. Listen to this week’s show and learn: 01:05  Get $5,000 - $15,000 cash flow per month from one single-family home. 01:37  Upcoming guests on future shows include T. Harv Eker and Tom Wheelwright. 02:50  40 million senior citizens today will balloon to 89 million by 2050. 05:15  Single-family homes - not giant institutional complexes - are a great niche for the individual investor / businessperson. 08:09  Don’t be involved in the day-to-day operation of the ALH. 09:13  Ideal ALH location. Home size 300-500 sf per person. 13:20  No commercial kitchen. Grab bars, wide doors. 14:18  Profit & Loss Statement. $36,000 / monthly avg. income for ten private rooms in one ALH. 17:51  Owning vs. Leasing the real estate to operate your ALH. 19:43  Zoning, Licensing, Liability Insurance. 27:13  How do you find an ALH? 31:19  State-administered trainings vs. business-oriented trainings. 32:39  Financing. 37:15  Occupying your ALH with residents. 39:27  “Mom & Pop” ALHs. 42:04  Caring for others.   43:35  What does an ALH manager do? 45:00  Gene shows others how to provide ALHs with a live 3-day Training, and at RALAcademy.com   Resources Mentioned: RALAcademy.com CorporateDirect.com NoradaRealEstate.com RidgeLendingGroup.com GetRichEducation.com

#96: Keith’s story about starting in real estate, how to think abundantly, and leveraging the efforts of others to create wealth for yourself. Keith is interviewed by Kathy Fettke. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities. Listen to this week’s show and learn: 03:20  Before you expand, appreciate what you already have. 05:44  Avoid the crowd constantly focused on “spending less.” They live half-dead. 08:41  An inspirational Dale Partridge quote to live by. 12:19  Starting big. Most people move & follow the money. Instead, make money follow you this way. 14:03  Buying a four-plex: 3.5% down, 12 months owner-occupy, minimum 580 FICO score. 15:51  Utilizing other people’s money. 18:26  Compound interest is lame and slow. Here’s why. 22:28  Don’t be debt free. Be financially free. 23:56  In RE investing, the property is only the fourth most important thing. 24:50  Here’s how Keith expanded his real estate portfolio with other people’s money. 27:30  Investment RE markets in Dallas-Fort Worth, and Anchorage, AK. 29:43  Value your time. 33:57  A bar of iron costs $5. What will you turn it into?   Resources Mentioned: GetRichEducation.com CorporateDirect.com NoradaRealEstate.com MidSouthHomeBuyers.com

#95: The United States real estate market is compared with those in Australia and Japan. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities. Listen to this week’s show and learn: 02:18  Poor stands for Passing Over Opportunity Repeatedly - P.O.O.R. 04:00  A re-cap of Keith’s story. 07:10  Reasons why the U.S. real estate market is special. 09:14  Largest economies by GDP. 13:57  Australian real estate market overview with Marcus Whelan. 21:18  Japanese real estate market overview with Marcus Whelan. 27:14  Why the U.S. is special for income property, and business opportunity. 30:46  English-speaking is a major advantage that’s taken for granted. 32:45  Time vs. Money.   Resources Mentioned: GetRichEducation.com World's largest economies by GDP CorporateDirect.com NoradaRealEstate.com MidSouthHomeBuyers.com

#94: Self-Directed IRAs and Checkbook IRAs potentially enable you to invest your IRA funds into income real estate, coffee farms, a vacation home, gold, a business, and more. But there are rules to follow. Today’s guest made an educational video to help you learn about this: www.premierlawgroup.net/gre Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities. Listen to this week’s show and learn: 01:52  Your Individual Retirement Account (IRA) doesn’t have to be invested in mutual funds. 03:47  Even if you don’t own an IRA, you want to know this in case you aggregate other investors’ money. 05:20  Right after college, Keith admits he actually used to think it was smart to invest in 401(k)s and IRAs. Once enlightened, he tore it down. 07:23  Keith tells you who his Self-Directed IRA custodian is. 12:52  Mauricio Rauld Interview. 14:27  What is a Self-Directed IRA (SDIRA)? 16:17  With a SDIRA, what can you invest in? What’s prohibited? 20:08  Checkbook IRAs. 21:40  What a custodian does. What your limitations are. 24:28  Liquidity - how fast can you use your IRA funds? 25:42  Planning. It’s often best to fund your SDIRA with one larger lump sum. 27:11  Real estate leverage and a SDIRA. 29:53  LLC protection with Checkbook IRAs. 31:05  One option is to just dismantle your IRA. 32:40  Traditional vs. Roth IRAs. 35:00  How you actually set up a SDIRA / Checkbook IRA.   Resources Mentioned: www.premierlawgroup.net/gre CorporateDirect.com NoradaRealEstate.com MidSouthHomeBuyers.com GetRichEducation.com

#93: U.S. Single-Family Homes rented as income property could be the best investment class on earth today. Here’s why, and here’s how to be strategic about it. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities. Listen to this week’s show and learn: 02:15  Most people mistakenly think “real estate investing” means “house flipping.” 04:06  Keith is now a Contributing Author at Kiyosaki’s Rich Dad Advisors blog. 06:35  The S&P 500 Index recently closed at an all-time high. Who cares? 08:50  Size of the U.S. single-family rental market. 10:15  Demographic demand for SFHs. 12:35  SFHs: low cost, time value of money, liquidity, divisibility, school district. 16:00  Buy in 3-5 geographic markets. 18:42  Good turnkey providers avoid property in “war zones.” 23:04  Recession resistance. 23:42  Condominiums. 24:53  No common walls mean problems are confined. 25:57  Utilities, tenant quality, tenant psychology. 27:46  Autonomous cars and technology. 31:20  Rent-To-Value (RV) Ratios. 32:01  Single-Family Income Property “poetry.”   Resources Mentioned: Keith’s first Rich Dad Advisors blog article CorporateDirect.com NoradaRealEstate.com MidSouthHomeBuyers.com LittleRockTurnkey.com GetRichEducation.com Want a free GRE logo decal? Just write a podcast review. Here’s how at: iTunes, Stitcher, and Android. Send: 1) A screenshot of your review. 2) Your mailing address to: [email protected] for your decal.

#92: Garrett Gunderson is our guest today. A polished and articulate speaker, he leads Wealth Factory to help you build wealth with limited risk. He helps you find spendable cash that you didn’t even know you had. He tells you why 401(k) plans are awful. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities. Listen to this week’s show and learn: 02:33  Garrett was kicked off CNBC for telling the truth about stocks and diversification. 05:12  Where Garrett’s “abundance mindset” began. His upbringing in coal-mining Price, Utah. 08:30  A millionaire is not financially wealthy. Think bigger. 11:04  “Financial planners” and “advisors” are just commission-based salespeople. 12:45  Myths to avoid. 15:15  Long-term, stocks return zero or post negative returns. 19:42  Cash flow matters more than net worth. 21:02  Your four types of expenses. 27:03  Discover your “Investor DNA.” 30:33  “Budget” should be a swear word. 33:00  How Get Rich Education differs from Dave Ramsey. 34:59  401(k) plans are terrible.   46:10  Find Garrett at WealthFactory.com. Resources Mentioned: WealthFactory.com CorporateDirect.com NoradaRealEstate.com MidSouthHomeBuyers.com GetRichEducation.com Want a free GRE logo decal? Just write a podcast review. Here’s how at: iTunes, Stitcher, and Android. Send: 1) A screenshot of your review. 2) Your mailing address to: [email protected] for your decal.

#91: While a rich man digs for gold, a poor man is concerned with the cost of a shovel. Learn how to think like a wealthy person, and make it actionable. Learn what Keith did during his typical week. Doing this yourself will build your wealth. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities. Listen to this week’s show and learn: 02:50  Most financial advice is flawed and limiting. 04:14  Are you living your dreams or living your fears? 06:50  Delayed gratification. 09:00  401(k)-type contributions crush your current lifestyle. So what’s the answer? 12:38  Why would anyone contribute to a 401(k)? 15:13  Here’s exactly what Keith did this week himself that can build your wealth. 18:17  Actionable step on how to increase your property’s cash flow. (Loss runs.) 24:54  Keith applied for a 100% loan-to-value HELOC on his own home. He wants every last penny of equity pulled out of his home. Here’s why. 30:42  Refusing a REIT advertisement. 31:57  A smart GRE listener has these two great questions for Keith: reserves, cutting expenses, living below your means. 38:35  A new way to think about real estate problems.   40:04  Looking for turnkey income property? Do this.   Resources Mentioned: CorporateDirect.com NoradaRealEstate.com MidSouthHomeBuyers.com GetRichEducation.com Want a free GRE logo decal? Just write a podcast review. Here’s how at: iTunes, Stitcher, and Android. Send: 1) A screenshot of your review. 2) Your mailing address to: [email protected] for your decal.

#90: Harry Dent is our guest today. His fantastic predictions - like the Dow Jones cratering to 6,000 by early next year - get noticed because the depth of his research is so extensive. Harry authored the popular book “The Demographic Cliff.” Learn what Harry thinks about demographics, markets, and cash-flowing real estate in the turmoil ahead. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities. Listen to this week’s show and learn: 04:11  Why it is more difficult than ever to make economic predictions today.   06:06  Stock markets are overvalued and due for a fall. 07:40  Demographics are powerful in making predictions. 08:03  Money printing. 09:50  Dow Jones Industrial Average to 6,000 by early next year? 11:45  Renting property for positive cash flow. 13:27  Vacancy rates - U.S., China. 14:33  Real estate bubble? What do you do? 16:08  Predictions: Real Estate vs. Stocks. 17:30  Demographics’ historic influence on real estate. 20:58  The two reasons for buying real estate today. 24:00  More people are renting homes rather than buying homes. 29:34  How bad will the economic crash get? 33:25  Don’t keep money in the bank or gold, but in this surprising place! 37:43  Gold to $700 an ounce in the next few years? $400? 39:28  The Demographic Cliff. 42:30  Can technology save us from an economic crash?     Resources Mentioned: HarryDent.com CorporateDirect.com NoradaRealEstate.com MidSouthHomeBuyers.com GetRichEducation.com Want a free GRE logo decal? Just write a podcast review. Here’s how at: iTunes, Stitcher, and Android. Send: 1) A screenshot of your review. 2) Your mailing address to: [email protected] for your decal.

#89: Little Rock, Arkansas is the capital of what some have called “The Most Landlord-Friendly State in the U.S.” Brian Teeter and Jeremy Veldman from LittleRockTurnkey.com tell us about the market drivers, management, and properties. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities. Listen to this week’s show and learn: 03:48  Keith made a field trip to investigate the Little Rock, AR income property market. 09:14  Market drivers - medical, finance, capital city, population growth, low cost of living, short commutes. High economic diversity. 13:47  Kiplinger’s recently rated Little Rock as the #1 Place To Live. 15:05  Employment, job growth, population growth. 16:32  Is Arkansas the most landlord-friendly state in the U.S.? 21-day eviction. 17:53  Provider’s buying criteria: neighborhood, desirable amenities, safety, property age. 21:04  Better areas, better finishes, better tenants = better investments. 21:52  Price point often $85K - $100K. Rent-to-value ratio. 23:33  Appreciation rate. 26:18  Character of renters. 30:16  Management structure. 31:45  Tenant qualification. 34:12  Extent of turnkey renovations: often new roof, HVAC and water heater. HW floor, LVP, vanities, bathrooms, etc. 40:03  Warranties. Not many Section 8 tenants in their portfolio. 43:52  Little Rock Turnkey offers tours. 44:33  LittleRockTurnkey.com | (501) 951-7100 | [email protected] Resources Mentioned: Little Rock Turnkey Corporate Direct Norada Real Estate Mid South Home Buyers Get Rich Education Website Want a free GRE logo decal? Just write a podcast review. Here’s how at: iTunes, Stitcher, and Android. Send: 1) A screenshot of your review. 2) Your mailing address to: [email protected] for your decal.

#88: Learn how to predict real estate prices by looking at the direction of supply & demand, available land, migration patterns, financing and more. Fascinating! Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities. Listen to this week’s show and learn: 02:26  Why Keith is happy that he sold all his stocks two years ago - even though they’re 8% higher now. 05:47  The FIVE ways that real estate pays you simultaneously. 10:06  Most RE investors “get rich in a niche.” David is a generalist. 11:48  Many cash flow RE investors actually get more profit from appreciation. 14:40  Price vs. Value. 16:43  Land. 20:35  Supply, Demand, and Capacity To Pay. 27:15  Market cycles. 35:15  The “U-Haul Factor.” 36:35  Financing’s role in predicting RE prices. 45:02  Inflation vs. Deflation.   Resources Mentioned: Hassle-Free Cashflow Investing Corporate Direct Norada Real Estate Mid South Home Buyers Get Rich Education Website Want a free GRE logo decal? Just write a podcast review. Here’s how at: iTunes, Stitcher, and Android. Send: 1) A screenshot of your review. 2) Your mailing address to: [email protected] for your decal.

#87: This clever technique can significantly boost your cash flow in your existing buy-and-hold real estate portfolio. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities. Listen to this week’s show and learn: 02:48  To become wealthy with real estate, you don’t need any formal education or family connections. 05:09  With turnkey real estate investing over the long-term, you get: good returns, more control, less hassle. 07:18  A question about the 1% rent-to-value ratio from a Chicago listener. 12:31  How to use “lifestyle” real estate to help your “long-term buy-and-hold” real estate. 14:00  How to market this clever technique. 16:09  Benefits: better tenants, better occupancy, timely rent payments. 18:36  Vacation rentals in the U.S. vs. outside the U.S. 22:00  Management and maintenance structure of vacation rentals. 26:28  This technique can make your vacation rentals more successful too. 30:55  Foreign property ownership structure. 33:10  Interpreting foreign property contracts. 34:35  Governments cracking down on weekly rentals. 35:43  Your vacation rentals should be bought so that they would cash-flow as long-term buy-and-holds. 36:33  Diversification. 38:47  Do this yourself, or Kira Golden can help you get started: DirectSourceWealth.com/Portfolio   Resources Mentioned: Direct Source Wealth Corporate Direct Norada Real Estate Mid South Home Buyers [email protected] Get Rich Education Website Want a free GRE logo decal? Just write a podcast review; here’s how at: iTunes, Stitcher, and Android. Send: 1) A screenshot of your review. 2) Your mailing address to: [email protected] for your decal.

#86: Ken McElroy is our guest today. He’s the Rich Dad Advisor for real estate, controls more than 10,000 residential units, and is one of the best-known and most successful real estate investors in the United States. He reveals where he finds his deals today! Learn about how you can profit by acting just like the bank does. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities. Listen to this week’s show and learn: 02:35  Keith brings you today’s show from Alyeska Resort in Girdwood, Alaska. 05:50  When real estate prices rise, cap rates fall. 7:58  Can’t beat the bank? Then BE the bank. Here’s how. 14:16  Why are (uninformed) people still saving money? 18:50  Here’s where Ken McElroy is finding his deals today. Primary, secondary, tertiary markets. 24:15  When oil prices fall, how soon does it hurt a real estate market? 28:17  Why Ken avoids buying in the U.S. Northeast, Southeast, and upper Midwest. 34:02  Demographics. 36:42  Self-storage units, mobile home parks, luxury real estate, resorts, office, retail, efficiency apartments. 40:40  So many news articles pertain to real estate somehow. 41:36  KENFlix - Ken’s instructional video series. 45:10  Say you’ve been given $10 million. Here’s how to deal with it. Resources Mentioned: Ken McElroy’s company KenFlix Corporate Direct Norada Real Estate [email protected] Get Rich Education Website Want a free GRE logo decal? Just write a podcast review; here’s how at: iTunes, Stitcher, and Android. Send: 1) A screenshot of your review. 2) Your mailing address to: [email protected] for your decal. Keith Weinhold: Hey, welcome to GRE. This is Get Rich Education episode 86. I’m your host, Keith Weinhold. Here’s hoping that you’ve lived an abundant week. I’m back to help you build wealth for yourself. What we’re talking about is very realistic, extra income and life-changing income for the average Joe here and you won’t end up as an average Joe. You will be able to do what most people can’t because you did what most people wouldn’t.     Today, we’re talking to one of the best known real estate investors in the nation that is Rich Dad advisor, Ken McElroy. Ken’s contributed to our real estate investing education industry with countless real estate investing books both inside and outside the Rich Dad series and at last check, he controlled more than 10,000 real estate units.     I recorded Ken and I’s chat the other day when I was in Anchorage. Today, I’m bringing you this show from the Alyeska Prince Hotel at the fantastic Alyeska Resort here in the rain-forested, ski community of Girdwood, Alaska. Although summer is in full swing now, this is the premier ski resort in the entire state of Alaska in the winter time. In this time of year, we’re enjoying the spa-like amenities, the really luxurious accommodations and there’s an aerial tram that will ride up the mountain later today.     Really a fantastic scene here at this resort nestled in the Chugach mountains. Now, if you look down lower, you can see tidewater. You can see sea level here and if you look up higher, you can see at least five hanging glaciers from this vantage point. You have the paradox of seeing blue Alaska glaciers but because you’re near sea water, you can also see seagulls.     Interestingly here in Girdwood, this adjacent forest is recognized as the northernmost rainforest on earth and its climate is distinctly different from that of my home in Anchorage which is just about 40 miles north of here. I think you’ll like this Ken McElroy interview today. If you’ve ever been around Kenny, he’s very easy to talk to and by the end of this thing, we’re just chatting as I’m throwing questions and ideas out there. He joins me from the Phoenix area today, Scottsdale, Arizona and this is his second Get Rich Education appearance, so here we go.     From the early days of managing properties for others, to being a well-known investing guru and successful entrepreneur, Ken McElroy has considerable experience in property management as well as real estate investing in both Phoenix Arizona and across the United States with 26 plus years of elite level experience under his belt.     He has offered his fans multiple real estate investing books and is a longstanding Rich Dad advisor to the author of the Rich Dad, Poor Dad series, Robert Kiyosaki. Ken’s true passion to educate others has led him to speak internationally on real estate investing, entrepreneurship and the keys to financial freedom. Welcome back to Get Rich Education for your first appearance since you were here on episode 25, Rich Dad advisor, Ken McElroy.   Ken McElroy: Hi, Keith. Thank you. Great to be on your show again.   Keith Weinhold: Hey, it's good to have you back. It was good to see you [inaudible 00:04:57] a few months ago as well. How are things going there? When you think about Ken McElroy, I think about the MC Companies deals that you syndicate. You know what, five years ago, I was thinking, Ken is probably looking at so many deals with prices being run down. He must be going nuts with all these deals and today what do you do? The cap rates have run down so much. I mean, what are you doing if you’re not looking for deals or if you still are where are you looking?   Ken McElroy: We’re definitely looking. We have a full acquisition team out meeting with brokers and flying around looking at markets. It’s harder. That’s for sure. It actually got harder. The reason cap rates are down is when interest rates started going down. Of course lower interest rates lower cost of debt, more cash flow. The prices started going up and we’ve been battling this for a few years. It’s not something that just came about.   Keith Weinhold: Now first of all, that’s a paradigm to some people. When a market heats up, sometimes people think, “Oh, well then cap rates must be heating up and going up,” but that's actually just the opposite. Sometimes people need to wrap their mind around that since the cap rate is the net operating income divided by the value of a building when that net operating income stays about the same and the building value shoots up faster that lowers one’s capitalization rates.     Cap rates actually get driven down. I guess my thing is since arbitrage really is the cap rate minus a mortgage interest rate, even if cap rates have been driven down say to six-and-a-half on a building and you can still get a mortgage interest rate at five-and-a-half, that's 1% arbitrage. I mean, wouldn’t you still do the deal then? Of course there’s going to be a lot of “it depends” factors but even if cap rates have been driven down to a point where they’re still higher than mortgage interest rates, do you still go ahead? Do you still look?   Ken McElroy: That’s a really good question. We look at things a little bit differently. I don’t always use the cap rate as a determining factor of whether we buy something. I’ll give you an example. I think cap rates are definitely something you need to watch. If you’re trying to buy a property that is in really good condition and full, and has a stable operating history, then I think cap rate means something, but if you’re buying something that, let’s say has a value add component to it and or maybe some occupancy issues, your cap rate is not going to look good because you’re going to buy it based on the way the property is performing and the way the rents are currently not necessarily on the future.     We do look at cap rate, but mostly we look at cash flow. We start with cash flow and if we can find something that is cash flowing in the first few months of buying it and we can improve it, then of course we’ve got what would be a true value add.   Keith Weinhold: I think what we’re basically doing here as a real estate investor where you have a cap rate that exceeds an interest rate, kind of what you’re trying to do is be the bank effectively or do what the bank does by borrowing a lower rate and investing at a higher rate. I saw you write a Rich Dad Advisors article recently about how banks work and how we can exploit that as real estate investors. Tell us a little bit about how banks work and how that plays into what a real estate investor does in being the bank.   Ken McElroy: Sure. This also ties with your last question about arbitrage. For example, we’re in the process of buying a property right now in Mesa, Arizona and the rate that we‘re projecting, the fixed interest rate is going to be under 4%. This is a quote we actually already have. Rates should be under four fixed and we’ll have three years of interest only as part of the loan.     You think of the banks, the reason why the interest rates are so low right now is because there’s a lot of people saving money. The article that I wrote for Rich Dad was … What happens is money like anything is there’s a supply and a demand on money. If there’s a lot of money in banks then the only way banks make money is to lend it.     That’s why they’re trying to get everybody in credit card debt. That’s why you see all these credit cards. That’s why they’re doing it with student debt. They’re doing it with all kinds of things. They’re not doing it right now with the refi. The investor loans and all the cash out refis that they were doing before the subprime crashed, but there’s a tremendous pressure on banks to get money out because that is the way that they make money speaking of arbitrage. If let’s say somebody has $10,000 in the bank and they’re making 1% which I think today would be generous.   Keith Weinhold: We’re just talking about your everyday depositor.   Ken McElroy: Everyday depositor, right. That’s an expense to the bank.   Keith Weinhold: Right. Now, that’s a paradigm for some people. When you put 10,000 in the bank, that is an expense to the bank at that point.   Ken McElroy: Correct. Right and that’s what I wrote in that article because if you think about it, it’s true, right? I mean if you give the bank money, you’re going to want interest on it so that’s an expense to the bank. Less than 1% is not necessarily very good. Now, the bank has your money and their job is to let it out at say 4 or 5, 6%. That’s how banks make money. That’s not the only way banks make money but that is a big way that banks make money.   Keith Weinhold: An everyday savings depositor might go ahead and deposit their money in the bank and the bank has an obligation at that point to go ahead and pay that depositor 1% and then what the bank is doing is they’re turning around and they’re loaning it to you like the deal that you just described in Mesa, Arizona for 4%.The bank’s arbitrage in that case is 4-1 or 3% and then what you’re doing with the 4% at that point, tell us about that and how that arbitrage works for you?   Ken McElroy: That’s exactly how it works. Exactly. I’m glad you’re walking it down this way. Then I borrow the money at four, let’s say, I put it into, in this particular case, it’s a $35 million apartment deal. Actually the deal is 35 million and we’re actually borrowing 28. Now, I’m borrowing 28 million at 4%. Now, I get into the nuts and bolts of how the deal is itself.     The deal of course pays for the mortgage but in addition to that, it generates about 7% cash on cash return on the actual investment. People call it loans, but I call it OPM, other people’s money because that's what it is. People I think sometimes get confused about money. It’s really very simple. If I borrow something from you, you can actually give it to me in a form of equity or you can give it to me in a form of a loan.     It's the same with the bank. The difference is the bank is using your money. You can give it to somebody directly or you can give it to the bank and then of course they’re dishing it out in the form of equity and debt because banks actually do equities too in some cases, a lot of banks. It’s the same thing with a life insurance policy or a 401k or even a pension.     Let’s say you’re a union worker and you pay it to a pension or a teacher or a fireman or a policeman or something like that. That money that you’re putting away gets invested. Unfortunately you’re giving away all your power and not knowing what it’s invested in, but regardless, let’s say over a period of a long time, you’re putting money into a pension or even a life insurance policy for that matter.     The reason why when you get your statements and you see return on that money, it's because it’s invested in something. It’s not just put into the bank. They’re actually physically investing it. Believe it or not, pensions, life insurance companies and banks are all trying to invest in similar things.   Keith Weinhold: Right. They’re opportunist like we want to be opportunist in a sense when a depositor goes ahead and puts her $10,000 in the bank, that’s the bank’s problem so the bank has a problem and they’re encumbered with those interest payments and they need to flip that around and go ahead and find an investment opportunity to solve that problem.   Ken McElroy: That’s exactly right. That’s why as you watch, it’s very interesting to watch how banks compete for deposits. They want deposits. They give away free checking and they give away free toasters or whatever they might do and the people are like, “Oh my god. This is great. I get free checking.” What they’re really trying to do is get you to open bank accounts so that they can actually use that money to lend it.   Keith Weinhold: Really, the genesis of that process is one individual saver and first of all you said there are more people saving these days. Why are they saving more these days?   Ken McElroy: I don’t think that they’ve completely understand the system.   Keith Weinhold: They definitely don’t if they’re saving.   Ken McElroy: Correct. That's one reason. Also I believe that there’s still some hang over from the recession. I live in Phoenix and home prizes are still the inventory and everything that went back to the banks and everything. We’re still starting to see home prizes relatively flat even though they’ve increased a little bit. I think a lot of people got freaked out during the subprime crash. They lost jobs, they lost all the equity in their houses and I think this time around, they’re having a little bit more of a cushion which is probably smart.   Keith Weinhold: If more people are saving these days, in a sense, that creates more of a problem for the bank if you will because they need to go ahead and get that money reinvested and when more banks have more problems, that's when banks begin to compete for each other and that’s probably why you’re able to get terms like 4% fixed on the Mesa, Arizona apartment building and three years interest only. In the genesis of that, begins with there being more demand for savers.   Ken McElroy: That’s exactly right. That’s exactly what I would have said. Again, if you can look at it like if there’s a … Let’s say you live in a town where there’s a lot of excess development for houses, the supply of houses are going to keep the prices down and they’ll start to do concessions as they try to move through that. It’s the same with money. People just don’t think of it that way. When there’s a lot of money looking for a home, then the price of money goes down and that's what we’re seeing right now. There’s a tremendous amount of money looking for a home which is why interest rates are low.   Keith Weinhold: That tells me that I have a problem too. I need to convert more people to Get Rich Education listeners because if there are a lot of savers, none of them are Get Rich Education listeners. I can tell you that. Ken and I are going to come after the break. I’m going to ask him a few more questions about now that cap rates have been run down, where does it go for deals? Does it go into a secondary market? Does it go into a tertiary market and more? You’re listening to Get Rich Education. Our guest is Rich Dad advisor, Ken McElroy. More when we come back. I’m your host, Keith Weinhold.     Now, this is something exciting through Get Rich Education and International Coffee Farms. You can once again own your own half acre parcels of a passive income generating coffee farm in Panama for as little as $13,000. This farm is going to be planted with the most in-demand varietals of specially coffee in the market today. The farms are professionally managed for you on a turn-key basis and you own the land.     It’s a low-risk opportunity with an average annual return projected at 12% and that doesn’t even include potential appreciation in the value of the land. These affordable raw land offerings are available only for Get Rich Education listeners through June 30th and then if there are any partials left at the time, the offer is going to go public. Partials are allocated on a first come, first served basis. To learn more, just send an email with your contact info to trichloromonofluoromethane   Speaker 5: Are you looking for a road map to financial freedom? If so, we have a solution for you. Norada Real Estate is offering a limited number of free strategy sessions to help you get out of the rat race. Learn how you can create wealth and build monthly passive income. To set up a time with one of our knowledgeable investment counselors, simply go to noradarealestate.com. That’s N-O-R-A-D-A realestate.com.   Robert Kiyosaki: This is our Rich Dad, Poor Dad author Robert Kiyosaki. Listen to Get Rich Education with Keith Weinhold. Don’t quit your daydream.   Keith Weinhold: Welcome back to Get Rich Education with our featured guest, Rich Dad advisor, Ken McElroy. Ken, this is a really interesting time here while prices of real estate have heated up and cap rates have been run dow. You are one of the biggest syndicators on the entire globe today so I want to know where in the heck are you fighting your deals today in this market? How are you doing?   Ken McElroy: They’re hard to find. I will tell you that. We like to focus on … I’ve talked to you before about this. I’ve written quite a bit about it. We don’t like to be a pioneer in any town so we basically can’t invest right now in the primary markets so that’s important to know. The primary markets would be Seattle, San Francisco, LA, New York, Boston, Chicago, those kinds of markets because what I call the dumb money is coming and do it which Wall Street because that’s really other people’s money again like we talked about in the first segment and it’s just being invested by a bunch of people, placing it.     What we’ve had to do is go into second and third tier markets. The third tier markets can be risky however if they’re based too heavily on let’s say one employer or just a few or it could be like a great example would be North Dakota. Everybody went there because of oil. That’s probably the best example. That would be considered a third tier market and I probably got asked at least once or twice a month over a period of two years to go do something up there and I never did because I’ve seen a boom and bust before like that.     Something that is entirely based on oil prices is not necessarily a good spot to be. I think that if you’re looking at it from a what we would call a capital gain standpoint, you might time it right. I’m sure, there’s a bunch of people that made very good money up there during that time but there’s also a bunch of people that lost a bunch just recently.     It could be the exact same thing around a military base or something like that. We’ve had properties in and around military basis and as they deploy, let’s say personnel out into other areas, it reduces the population [inaudible 00:20:52] and things like that. Those third tier markets can be tough and so you just got to be very careful about those. We prefer the second tier although there’s a lot of money moving into second tier right now.     The second tier market believe it or not is something like let’s say Tucson or even Las Vegas. Las Vegas however is also based heavily on tourism so when the economy is doing well, Las Vegas is doing well. Not necessarily the best market because it’s not as diverse as you would want. It is well over a million-and-a-half people now. Again, it’s only based on people flying into town and staying at the casinos and going out and spending a thousand dollars a day on bottles of wine and all that.     I think you just got to be careful of those but there are definitely ways to make money in those markets. What we like to do is try to take a look at where employers are going and try to be ahead of that a little bit. The other thing that can really throw a market off is construction. Some of these small markets like Austin, Texas which is really a second tier market is I think it has 16,000 apartments under construction right now.     It’s heading into some real tough few years ahead of it. Whereas Phoenix, I think has eight and Phoenix is much bigger. You got to look at supply at the same time but as we start to look at these markets, we like Austin, believe it or not and some areas we like San Antonio, we like Tucson. We like of course Phoenix which is where I’m based and we like Tulsa, Oklahoma, some of those markets. Salt Lake City. We’re looking at all those.   Keith Weinhold: We’re talking about different marketers here and I’m saying this mostly for the benefit of listener primary, secondary or tertiary which is third tier. We’re generally talking about the population, the metro size of an urban agglomeration and typically when you have greater size, you do have more market industry and sector diversification so just a general, just a general correlation, bigger size, you’re more likely to be hedged against economic downturn but there are shorter term things going on as well and it sounds like in Austin, perhaps demand could be lagging behind supply little bit since there’s an awful lot of new construction coming on board. You can’t just look at the size of a metro area and know how safe you are just simply based on the size of it.   Ken McElroy: Right. I think if you take a look at … The nice thing about real estate is that there’s quite a lag with it. As occupancy rates tick up or rent growth ticks up, you can almost bet that there’s going to be development to throw it off at some point. Banks like to lend in strong markets so if the occupancy and the rent has year over year growth then people are going to be buying land and building. At some point however, there’s too much being built and then the numbers change again.   Keith Weinhold: With this lag effect in real estate, I want to get a number from you in approximate period of time in which when one sees oil prices fall so dramatically like they have and they really just begin their decline about two years ago, when that really catches up with the market of course there’s plenty of “it depends” factors but for me I live in Anchorage, Alaska. That’s where I am today. I have local rentals and I still have great occupancy.     I have not gotten rent increase in the past two years but I still have fantastic occupancy which is really the important thing. I’ve held on for about two years. What do you think that period of time is where you can see a precipitous decline in the price of barrel of oil to when that really catches up with you and you really have significant effects in vacancies in a market?   Ken McElroy: We’re seeing it. I can just speak from real experience. We have property in Houston, Texas and it shows up at the moment people lose jobs. If there are jobs that are lost, the people typically move and/or look for other jobs which means sometimes they’re moving. Not necessarily always but whenever you start to see that, it shows up immediately. As oil went down, we definitely saw it within just a few months in Corpus Christi, in the Houston area and then of course it spills over into Dallas, and Fort Worth, and San Antonio and some of the other markets.     On the supply side however, if you’re looking at that, it can take a year-and-a-half, two years before it starts to show up because you have to buy the land, you have to go get the loan. It takes a year to build it. It’s not even ready to be moved into. That’s why I’m saying on the supply side it doesn’t show up as quickly which is nice.     If you already own something then you can really, really, really be careful and watch that supply side. For example, where we actually listed a property in Austin, two weeks ago, and five years, it’s being listed for 10 million more than we bought it for. That’s entirely based on the demand of the market.   Keith Weinhold: Congrats.   Ken McElroy: We’ll have to close it but we’ll see where it goes.   Keith Weinhold: We’re getting a little idea of your deal flow here. Where do you find your deals as far as not geographically but conduit wise? I mean do you have someone to go through LoopNet? I’m sure you’ve got a lot of great relationships with brokers. I mean does some of your deals still come from a resource like LoopNet or are they all pocket listings at this point?   Ken McElroy: Great question. We look at all of those things. We’re tied in to everything. We like to work with brokers. Here’s typically my experience. A lot of times what happens with the LoopNet stuff is the seller has typically been a little bit unrealistic and maybe they even listed it before. Sometimes you find deals with just top sellers.     I think that we like to work with brokers because that means that the seller has agreed to some kind of value and the broker is putting it out on the market at that kind of value. Nothing wrong with working with sellers directly but my experience is that they’re typically a little bit unrealistic on what they want and you’re not always getting the great deals that you would think by going to a seller directly.     The best deals that we’ve ever gotten were when we bought from banks because what happens when a bank takes back a piece of real estate, it’s actually toxic for them to have that on their books. It affects their ability to lend. I can’t remember exactly what it’s called but I know when we buy it, it’s from the REO department, that real estate owned department of the bank and if the bank has too many assets in that category, then they get penalized on being able to put money out. They’re typically losses on a loan and selling it back out to somebody. The best deals that we’ve ever gotten were buying directly from banks.   Keith Weinhold: Good to know. I had another question pop in my head. We were just talking about geography a little bit earlier there. We’re talking about buying in primary, secondary or tertiary markets. I know that you an MC Companies which is a large company and you do have hundreds of employees at MC companies, right?   Ken McElroy: Yes, 350.   Keith Weinhold: 350?   Ken McElroy: Yeah.   Keith Weinhold: That’s a lot of a central place for not just buying power but for knowledge and everything else. I want to know why would MC Companies maybe go to a secondary market in the geography where you continue to hang out which is mostly the southwestern United States in the south. Why not try a primary market? For example, I know that there are markets with sweet spots in places like Philadelphia, in Milwaukee. Why not go in a primary market because we do have more and more people moving to cities between censuses and society has urbanized a little bit more. Why not try those out or have you and I just haven’t heard about it?   Ken McElroy: Another very good question. First of all, just being selfish, I don’t really want to be on a plane that much and so my deal with my family was two hours on a plane. That basically gets me to the western half of the US and the truth is there’s deals everywhere. There’s deals to be had everywhere.     From where we are in Phoenix, I can be in Salt Lake in just little over an hour, all over LA or all over California, an hour to two hours. Same with Washington and Oregon, Idaho, Montana. We’re looking at all of those markets and then of course Texas is just two hours as well. That’s primarily the reason. There’s just a lot to do. There’s a lot of markets and a lot … There’s plenty of inventory but maybe someday we’ll look a little more east.   Keith Weinhold: I think that’s really an appropriate answer and it just tells the listeners that, you don’t need the entire country. We’re a big country and there’s a lot of deals. There’s even a lot of deals in the town that you live in. It always doesn’t have to be buying the whole real estate investing either. I know a bit about Ken. I know he’s quite a family guy. He’s really involved with his children and every summer you have essentially a retreat with your children where you take a lot of the summer months off.   Ken McElroy: I do. I take the whole summer off, actually. They get out of school in 10 days and I move. I don’t work all of June and all of July. Then one last thing I wanted to say on that last piece that I think is important because I get, I don't know, hundreds of deals a week to my email just like probably a lot of people. After a while as you start to show up on lists and you don’t even know how, but you’re on people’s lists and in the beginning you’re trying to get on everybody’s lists and now you’re trying to get off everybody’s lists.   Keith Weinhold: Right.   Ken McElroy: The point is I get deals from Philadelphia, I get deals from Wisconsin. I probably get five or six deals a week from Florida. I just delete them. This has a lot to do with focus and I think that … I’m trying to be as efficient as I can. We totally understand most of the big Texas markets. We completely understand Oklahoma. We completely understand Arizona.     Not that we just focus on those markets, but those are deals that I can look in less than 10 minutes and know whether or not I want to pursue to the next thing. We even focused on those deals. We looked at 600 deals last year and we made 58 offers and we got into about 28 best in finals. I think it was 28 or somewhere around 30 best in finals and we only have one.     That’s just in the western areas that we’re looking at. You can go crazy looking all over the place and the biggest issue I think people have is when they buy something. Let’s say they live in Phoenix and they buy something in Florida, is not having what I call boots on the ground, not having people there that can help you if something goes sideways or even people there that they can trust.     The intangible are the relationships that we have in those markets with the brokers and the property managers. I can look at something in Dallas on paper and call up some people that I know there and have a rent survey done within 24 hours, whereas in Florida, I get a call. Somebody I don't know. There’s tremendous amount of risk closure, I guess. It’s by just having some of those relationships.   Keith Weinhold: When you’ve narrowed your focus, you’re just more, I guess, preview to and in tuned with the type of information. We talked about brokers in your relationships but also that type of information where you might learn that at large hospital campus is going to be breaking ground in a certain section of San Antonio and you know that’s going to be good for sustainable demand for renters that can pay incomes for many years so therefore that may increase the chances that you would want to buy a 500 unit complex in northeast of San Antonio or something like that for example?   Ken McElroy: That’s exactly right. Versus at the same time in the hour, I met get a deal from Florida and it might look beautiful on the brochure and it’s on a lake in Orlando let’s say. I just don’t have the relationships there and of course there’s markets nuances too on one side. I was looking at a deal today in Austin whereas literally the interstate 35 on one side of the street has different rates than the other. Literally on one side of the interstate versus the other. Those little things can show up in every market. You have to know that information before you go in blindly.   Keith Weinhold: As you’re analyzing markets, are there really, I guess any more broad demographic trends that you see coming in the near term future. You can want to skate to where the hockey puck is going. You want to FOCUS, F-O-C-U-S, Follow One Course Until Successful. What about demographic trends whether that’s people moving to low tech, states or people moving in the central business districts and downtowns? How does that influence what you buy? What are you looking at? What are you looking for? Where are we going to go?   Ken McElroy: It influences a lot. I mean that’s the other part that I think it’s very fun because what happens a lot of times is people chase real estate because of the price. It’s way down the list for me at least. If you just look at, for example, I know we’ve talked before about seniors, there’s a huge number of seniors that are moving to their primary homes and moving in to rentals.     They want to have a little bit different lifestyle without that anchor on their home. You can track where they’re all going. Most of them are active. That’s one demographic. Another demographic is the millennials which are coming out of school right now perhaps or even maybe they already have or maybe they haven’t at all and they’re living at their home with their parents. That’s a huge number.     I’ve read it could as much as 25 million people living at home right now that are under the age of 25. That’s a renter demographic. You start to see these trends show up and really what generates, I think everything is jobs. Which markets are progressive and which ones aren’t. You start to look at cities, even counties that are shrinking and a lot of that has to do with tax and a lot of that has to do with jobs like … Obviously the one that gets used a lot is Detroit.     Detroit after the cars, manufacturing got outsourced or anything that’s based manufacturing is generally shrinking. Although that I think it’s starting to make some moves back the other way, now you’re starting to see all the tech popup, right? Austin is tech. Silicon Valley of course is all tech but there’s also little other areas that are all competing for tech right now and so those are all good things to watch. Once you figured that out, then the real estate, then you realize that there’s demand in a market, that’s how you invest. You don’t do the other way around and hope.   Keith Weinhold: You don’t hope and you typically don’t start with a property either. You usually finish up with the property when you’re looking at invest it rather at analyzing a real estate market.   Ken McElroy: Right. Hope is not a good strategy.   Keith Weinhold: Never has been, never will be. We’re talking about demographic trends and where people are moving to and people need jobs and jobs produce incomes and that’s largely a residential base phenomenon we’re talking about there. Do you see any, I guess sectors within real estate that are good to exploit in the next five to 10 years other than residential whether that’s self-storage or mobile home parks or a luxury real estate or resort real estate or efficiency apartments for millennials? What’s a good place to focus on there to profit?   Ken McElroy: The answer is yes on all those things. I’m actually in the process of looking at self-storages. We’re actually building one. We have some in Escrow. I’ve looked at mobile home parks. We have a lot of land. I’ve done condos. We’ve done single family. Primarily we’re known as apartment guys. I just bought an office building about six months ago in Scottsdale.     I’m looking at all kinds of things I guess is the point. Again. I don’t think you should be all in, in one sector but I think you should understand it. They all have different kinds of … They're all different. As an example, if you think about it, office buildings are in trouble right now because online retailing, online retail. Retailers are in trouble. If you look, there’s an article that came out in the national real estate investor magazine that talked about some very big stores are going out of business right now.     In Scottsdale here which is growing incredibly. We had Barneys go out of business in the last month which is at our big Scottsdale fashion mall and Barneys is a big national retailer. You start to look at these companies that are struggling with online retail. I don't know about you but my wife, we have more Amazon boxes showing up at our house from Nordstrom and all kinds of stuff. That’s how she shops now.     I think it’s common sense. If you start to look at those kinds of things, then you start to realize maybe I shouldn’t go into retail or malls. Malls are in trouble right now and office buildings are also potentially in trouble for that reason but not all office building. I bought an office building in Scottsdale and the sizes are 1,500 to 2,500 square feet and there’s like 20 tenants.     Their insurance agents, their CPAs, their lawyers and things like that that aren’t going to be affected at that level. People painting a broad brush and they say, “Oh, office buildings are bad or retail is bad or self-storage is bad,” but it’s not. You just have to look at where it is and is there an under demand or an over demand. I bought land five, six, years ago and everybody thought we were crazy but now that land has doubled in price.     We have the option now to sell it or build on it, both are good options and I’m not sure which we’re going to do. You just got to watch. When everybody is running to the hills, prices are going down, that’s when you want to start to take a look at those things but even then, it’s not necessarily always a good price and a good deal. You just got to be careful.   Keith Weinhold: Yeah, that’s right. Just like the answer is to most real estate questions. It depends. The answer to most real estate questions is more than one sentence long.   Ken McElroy: People really get frustrated with that answer and I get it. They want the answer. They want to know my situation is different. They all think that their situation is different. They want the quick answer. It can’t be that way. Just even in your community, in anchorage, you guys have gone through ups and downs in your own community for tourism and fishing and all that kind of stuff, and oil. I think as things happen in different communities around the country, you just got to pay attention to it and try to be in front of it.   Keith Weinhold: That’s actually interesting when you’re a real estate investor, it just seems like at least one third of the USA Today articles you read, you can tie in to what you can do and what you can invest in yourself. That might be insider information in stocks but you can use every bit of that as a real estate investor.   Ken McElroy: I think that is a great, great analogy. I actually did a seminar once where we opened up a newspaper in front of the room and we went through it. We said, this is how this article affects real estate. This is how this article affects real estate. This is how this article affects real estate whether it was a downsizing of an employer or an upsizing of an employer or a merger or in interest rates or bank closures or property openings or whatever. I’m telling you, you can open any business journal or any newspaper and most of the articles in there will have some kind of an influence on real estate.   Keith Weinhold: I believe every bit of that could be true. Ken, by this point, you’ve really amassed so many books that have sold well. I mean you’ve really been one of the more I think prolific contributors to real estate investing education and financial education today. One of the ways you contributed is something I’m very familiar with because I’ve been a long time subscriber myself and that is your video series, Kenflix. Tell us about Kenflix.   Ken McElroy: Thank you by the way. What happened is the books for me where not planned. Robert became one of my investors, Robert Kiyosaki and then he asked me to write some books on what I do. We donated all our money to charity for all our books. All the book sales all go to our nonprofit and then get distributed out to cystic fibrosis and autism and I think we have 25 charities that we support.     What was happening when the books came out, the emails and you can imagine we’re just pouring in. They’re all good people, really good people asking very good questions. There is just no way I could keep up on it. I mean literally my system will put them into a file and the problem was I would email somebody back. I tried to work this into my work and I just couldn’t.     I would email somebody back and then they have to two or three more questions back which is totally fine. I get it. What I started to do was just take all those questions and the do videos because it’s a lot easier. Also I found that a lot of questions were similar. Not all of them but a lot of them were very similar. The whole idea behind Kenflix was to … It still is. It’s entirely the questions and the videos that I have on there is information that I get from people asking questions. It’s not really something that I thought about it, it’s actually entirely driven by the questions that people have.   Keith Weinhold: It’s nice. I don't know if they're giving you all the content but they’re giving you leads about the content that they want to hear about back. You’re ahead of me. I continue to get more and more questions mostly through email with Get Rich Education and I know I sure cannot respond to all of them and I feel a little bit bad sometimes but your videos are really well done.     I got to admit, sometimes I watch those videos, a lot of times you have a big easel and a big pad of paper or you’re demonstrating things. I get a couple of ideas from my show. I’m like, “Oh, I haven’t talked about that on my show yet and I really like the way Ken described that visually in the video so Kenflix is totally worth checking out.   Ken McElroy: Thanks a lot. It’s been a lot fun. The other part that’s been great for me is for my time, we get all the emails from all the people and then we go through them and I’ll go into the studio for three or four hours and I’ll knock out maybe 15 of them. It’s just really nice to be able to accommodate what people want. Direct everybody in one location and also just to help.   Keith Weinhold: Kenflix, that’s K-E-N-F-L-I-X.com or you can check out ken’s video series. That’s great. Ken, how can our listeners find out more about you?   Ken McElroy: Either Kenfllix, K-E-N-F-L-I-X or KenMcElroy.com K-E-N M-C-E-L-R-O-Y or our company website is MC Companies, that's M-C-C-OM-P-A-N-I-E-S.com. We’re pretty efficient on getting back to people and happy to answer any questions we can.   Keith Weinhold: Ken McElroy. Thanks for coming back on to Get Rich Education.   Ken McElroy: Thank you, Keith. Great chatting again.   Keith Weinhold: One of the more fun chats with Kenny there. Now, you understood this from earlier right. Now, let’s just say that you’re given $10 million. That’s your liability. You’ve just been given a job. Dealing with that $10 million is your problem. That doesn’t exactly feel like a problem to you. Say that you are the bank and you need to pay a depositor 1% interest on that $10 million, your problem is that now you’ve got to make $100,000 a year in interest payments on that. Therefore, you must, you absolutely must find an investment that pays more than 1% per year because you can’t dip into the $10 million principle.     As a bank, what you do is you go ahead and make a 4% interest rate loan to someone like a real estate investor like me to solve your problem. Now, your profit is the 4% interest rate loan that you made to me minus the 1% that you’re paying your depositor and the spread, that 3%, that's your arbitrage.     Annually, you're profiting 3% on that $10 million deposit. Now, you transfer the problem to me is what you’ve done because now, I need to pay the 4% interest rate over to you. What I do to solve my problem, I do what you, the bank just did. What I do is I go buy an apartment building with the $10 million that I got from you. That apartment building yields an 8% cap rate, we’ll just say, so 8% minus the 4% interest rate and now I have a 4% arbitrage myself so I beat the banks by doing exactly what banks do.     I borrow at a bank for a lower rate and invest it at a higher rate which I will do all day and you know, I’ve got to credit GRE listeners for doing the same thing. You, yes you are acting by purchasing cash flowing turnkey real estate. Turnkey means that you’re buying the property already tenanted, already renovated, already under management and typically warranted for you too.  These properties should provide you with passive income from day one.     GRE listeners have scooped up dozens of homes from that extraordinary provider, Mid South Home Buyers in Memphis, Tennessee. That’s it. midsouthhomebuyers.com and for more opportunities in markets outside Memphis GRE listeners are subscribing to our newsletter at getricheducation.com.     You have been an action taker by purchasing properties through the webinar link that we send out in our newsletter. You’ve been buying turnkeys in Philadelphia, Chicago, Kansas City and Indianapolis. With those free newsletters, I only have a webinar link sent out every one to two months. I don’t blow up anyone’s inbox with too many newsletters, I only send out information on opportunities when I feel like I have something of real value to provide to you.     Subscribe to that free newsletter yourself simply by visiting getricheducation.com. Special thanks to Rich Dad advisor, Ken McElroy today. Sincere thanks to you for joining me today. Next week, you’re going to meet a real estate entrepreneur and she has such a fantastic creative system for increasing her cash flow on her buy and hold real estate that I just had to bring it to you because you can use the same technique too. Until then, you might quit your day job but don’t quit your day dream.   Speaker 7: You’ve been listening to Get Rich Education. Telling you what the wealthy won’t tell you about real estate and investing. If you enjoy the show, please take a minute to visit iTunes and leave your comments.   Speaker 8: Nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax legal real estate financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have a potential for profit or loss. The host is operating on behalf of Get Rich Education LLC exclusively.  

#85: If you want more property, not less, you’ll structure your financial life to leverage more income property loans for yourself. Graham Parham, Senior Mortgage Loan Officer with Highlands Residential Mortgage in north Texas, talks down payments, debt-to-income ratios, credit scores, reserves, the overall lending environment, Refinancing vs. a 1031 Exchange, HELOCs and more. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities. Listen to this week’s show and learn: 04:11  The last housing crash was primarily due to irresponsible lending practices. 05:18  We’re talking only about about 1-4 unit income property loans today, not primary residences. 06:02  The mortgage industry is preparing to loosen lending guidelines. 09:22  Reserve requirements - 100% of retirement assets count, up from 60%. 10:48  How to use the lowest down payment possible on a conventional loan. 11:39  Minimum down payments: 20% on single-family homes, 25% on 2-4 unit properties. Credit score requirements. 14:16  Debt-to-income ratio. 15:46  HELOCs - Home Equity Lines Of Credit. 18:37  Interest rates are about ½% higher for income property than primary residences. 19:30  Minimum loan amounts. 21:21  Are Interest-Only loans coming back? 24:48  With your equity buildup, should you do a Cash-Out Refinance or a 1031 Exchange? 28:00  Seasoning, gifts. 29:07  Rapid Rescore. 30:46  LLCs. 33:48  Must a husband and wife both be on a loan application? 34:57  Financing 10 to 20 properties. 36:25  FHA loans. 42:30  Back in 2006, this is how loose and easy lending guidelines were. 44:00  Keith recaps some takeaways from today. Resources Mentioned: Graham Parham or 855-326-6802 Texas Investor Loans Corporate Direct Norada Real Estate [email protected] Get Rich Education Website Want a free GRE logo decal? Just write a podcast review; here’s how at: iTunes, Stitcher, and Android. Send: 1) A screenshot of your review. 2) Your mailing address to: [email protected] for your decal.

#84: Robert Kiyosaki is our guest today. He tells us about his friendship with Donald Trump, why he’s buying oil, discusses the four types of intelligence, and tells us about his long-predicted Economic Crash. Want more wealth? Visit GetRichEducation.com and 1) Subscribe to our free newsletter, and 2) Receive Turnkey RE webinar opportunities. Listen to this week’s show and learn: 02:24  Kiyosaki has influenced Keith’s investing thoughts more than anyone else. 04:17  A 401(k) is not a good investment. Why not? It doesn’t pay you. You pay it. 06:46  The words you use help define the life you live. Examples: “cash flow” vs. “budget” and “saving money” vs. “getting liquid.” 09:54  “Rich Dad, Poor Dad” meaning, and global reach. 19:36  What Kiyosaki learned from Donald Trump. 22:04  Four types of intelligence: IQ, EQ, PQ, SQ. 24:25  Savers are losers. Why would you save money? 25:24  Economic Crash of 2016? 27:54  Robert has lost money in business, but not in real estate. 30:05  How to invest $100,000 today. 33:38  Kiyosaki is buying oil. 36:50  Giving to others. 38:00  Good Debt vs. Bad Debt. Fiscal vs. Economic. 40:38  Studying and learning leads to winning at investing. 42:09  QE, Inflation, and Gold. 46:53  Interview recap. 48:21  Instead of saying “It Can’t Be Done,” ask “How Can It Be Done?” 51:09  Don’t live below your means, expand your means.   Resources Mentioned: Rich Dad, Poor Dad Rich Dad Website Corporate Direct Norada Real Estate [email protected] The Real Estate Guys Investor Summit At Sea Get Rich Education Website Want a free GRE logo decal? Just write a podcast review; here’s how at: iTunes, Stitcher, and Android. Send: 1) A screenshot of your review. 2) Your mailing address to: [email protected] for your decal.