Get Rich Education
Get Rich Education
Aug 24, 2020
307: Why The Rich Are Getting Richer
Play episode · 35 min

The wealthy are enjoying federal monetary stimulus. Meanwhile, unemployed tenants can now be evicted nationally (check your local law).

Own assets? Great. Mortgage interest rates are at historic lows; the S&P 500 is at an all-time high.

(Entire episode transcript is below. Read as you listen.)

In the pandemic, tenants want single-family homes more than communal apartments.

Fannie Mae & Freddie Mac want to add a 0.5% refinancing fee. 

Homebuilder sentiment is high? Why? High demand, low inventory, low rates.

Stagflation is explained. It is a stagnant economy with high inflation.

There are signs that inflation is poised to increase.

Resources mentioned:

Inflation Triple Crown video:

https://youtu.be/dZojl686fU0

Section 8 turnkey property:

www.GetRichEducation.com/Section8

Stagflation video:

https://www.youtube.com/watch?v=YaC_PNKu_Cg&feature=youtu.be

Elevator Anxiety:

https://www.axios.com/elevator-anxiety-reopenings-9a474985-4786-43a3-8b64-5119ff7f2267.html

Mortgage Loans:

RidgeLendingGroup.com

QRPs: text “QRP” in ALL CAPS to 72000 or:

eQRP.co

By texting “QRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.

New Construction Turnkey Property:

NewConstructionTurnkey.com

Best Financial Education:

GetRichEducation.com

Top Properties & Providers:

GREturnkey.com

Follow us on Instagram:

@getricheducation

Keith’s personal Instagram:

@keithweinhold

 

Complete Episode Transcript:

 

Welcome to Get Rich Education. I’m your host, Keith Weinhold. 

 

The rich are getting richer and the poor are getting poorer. I can’t think of any one time in my life where that’s been happening more than it has been than right now.

 

I’ll tell you why - and what you need to do to get on the right side of that. 

 

What is going on in the real estate market and what are the real estate economics that matter? Then, a discussion about inflation. Today, on Get Rich Education.

____________

 

Hey, you’re inside GRE. From Manila, Philippines to Managua, Nicaragua and across 188 nations worldwide, I’m Keith Weinhold. This is Get Rich Education.

 

The rich are getting richer, the poor are getting poorer - and I can’t think of any one time in my life where that’s been happening more than it has been than right now.

 

Because Americans living paycheck-to-paycheck might now be ... paycheck-less. Some of them are laid off - because of the pandemic - and now they're concerned that there's no national eviction ban.

 

That’s right. In most states, non-paying tenants CAN be evicted at this time. Now, you’ve got to check your local law.

 

Well, when is Congress going to do something to relieve those that the pandemic has left unemployed?

 

Well, they don’t even reconvene until after Labor Day.

 

Some people are wondering - “Where is the CARES Act 2?” Where are those updated forbearance options, eviction moratorium, the PayCheck Protection Program, and the $1,200 stimulus checks and the stepped-up weekly unemployment compensation?

 

In fact, Richmond Fed President Thomas Barkin had  good metaphor. He said: “Months ago, when we did the first stimulus, we thought the economy faced a pothole and the stimulus put a plate over it so we could navigate. 

 

Now escalation of the virus may be making that pothole into a sinkhole and creating a need for a longer plate.” That’s the end of what the Fed President said.

 

Now, look, I think there’s a lot to be said for just letting the free market do it’s job. 

 

But it’s a little hard to be in this laissez-faire, Austrian economics school of thought when some people could be suffering.  

 

So that you know what I’m talking about, “lay-say-fare” basically means no government intervention into the free market.

 

Meanwhile, the rich are bingeing off Federal Reserve policy and liquidity injections that keep mortgage interest rates at historic lows and the S&P 500 at an all-time high.

 

Mortgage rates recently dipped below 3%, which is just amazing.

 

You don’t even have to be THAT rich … to benefit. If you’ve got substantial exposure to the real estate market or the stock market, chances are, that those assets are doing alright.

 

One thing that you need to keep in mind as an investor, is that, when the Fed puts rates on the floor, it affects more than just MORTGAGE rates - it affects other rates too - like savings account rates.

 

Just look at the rates at bank savings accounts. 

 

Even if you’re in one of these online banks that give better yields than traditional brick-and-mortar banks - we’re talking about online-first banks like Ally Bank and Popular Bank - they were paying two-and-a-half percent on savings accounts not all that long ago. 

 

Even those banks are now down to about three-quarters of one percent - probably less than the real rate of inflation.

 

So because savers get punished worse than ever right now, that, in turn, forces more people INTO things like real estate, because you’re in search of that yield.

 

Even retirees can’t rely on the paltry income from three-quarters of one percent yield so they have to go to the markets to chase yields too - sometimes unwillingly.

 

Well, when all these people that got negative REAL yield on savings accounts and CDs - and aren’t going to stand for it anymore, it forces more demand … and money into markets and consequently, floats the price of everything up. 

 

That’s what’s going on now.

 

Now, I personally don't really like this deepening canyon between the "rich” and the “poor". But I know which side I'd rather be on.

 

Besides the investment properties, a lot of people want to move and shake-up their living situation like never before - their primary residence - and filter their new home-buying criteria on pandemic ways of life.

 

Bidding wars are rampant for single-family homes. How rampant are they? Well, 

Zillow just reported their highest daily active user count ... ever. 

 

Now, though property data can move even slower than your last 1031 Exchange did, Real Estate Economist Daren Blomquist just compiled THESE year-over-year price changes through quarter two.

 

You’ve heard Daren Blomquist on the show here. He broke this down this way: 

 

City real estate is up +4% - again, this is all year-over-year through the second quarter.

Town +4%

Suburban +5%

Rural +11%

 

The two sources are ATTOM Data Solutions and the U.S. Census Bureau.

 

So rural is appreciating the best. City and town is appreciating the least. 

 

With time, I expect urban areas and apartments to slump. Of course, urban areas and apartments kind of go together. 

 

In the pandemic, living in a lot of large apartment buildings has become about as fashionable as Jazzercise and The Atkins Diet.

 

Of course, at GRE, we've long focused on rental single-family homes. We’ve talked a little about apartments and you know that I started out with a four-plex & got my start in real estate that way.

 

This week, NAR Chief Economist Lawrence Yun noted:

 

" ... (There's) an oversupply of apartment buildings, especially in city centers given the evident recent shift in consumer preference for single-family homes in the suburbs. 

 

Lawrence Yun continued: "Apartment rent growth could therefore be tough going ahead.

 

The rise of single-family units is welcome, as overall inventory of homes for sale are down 19% from one year ago and there is intense buyer competition in the market as a result." That’s the end of what Lawrence Yun said.

 

As long as your tenant can pay the rent, this is welcome news for your existing single-family rental homes - like the ones that you’ve acquired through GREturnkey.com. 

 

It puts upward pressure on the price. So congratulations there.

 

The appetite for real assets, especially desirable rental single-family homes, now propelled by low inventory and low interest rates has put you in good shape if you’ve acted.

 

But of course, the COVID pandemic isn’t over. We don’t really know how all of this is going to turn out. And even when a vaccine is developed, remember that it will probably take … at least a few months to distribute it.

 

In my OWN portfolio, all of my single-family rental homes are occupied - 100%. But my apartment building vacancies are unusually high right now.

 

When we talk about apartment buildings and office buildings as well - Axios recently reported about how residents and workers are experiencing what they call “elevator anxiety”. I’ll put that in the Show Notes for you. 

 

An elevator is one of the most physically, uncomfortable awkward places to be in the pandemic.

 

If you’re wondering about how that real estate looks - we’re generally talking about buildings that are four or more stories in height.

 

In fact, the ADA - the Americans with Disabilities Act - stipulates that properties with four or more stories generally are going to need to have an elevator. 

 

I’ll tell ya - if apartment buildings are as unfashionable as the Adkins Diet these days, then being inside an elevator is about as hip as Jane Fonda workout videos, NordicTrack, and Sweatin' To The Oldies with Richard Simmons.

 

https://youtu.be/na9ZZ4ZjVa8?t=28  

 

Oh geez. Did that really just happen? I guess it did. So … while we’re all processing that, getting back to real estate here.

 

Now, Fannie Mae and Freddie Mac recently said that they will start charging a 0.5% “adverse market fee” on all refinances, including both cash-out and non-cash-out refis. They were trying to put that new fee into effect for next month.

What a drag that would be. So for every $200,000 you refinance, you’d have to pay an additional $1,000 fee - or maybe your lender would pay it.

What Freddie Mac said is: “As a result of risk management and loss forecasting precipitated by COVID-19 related economic and market uncertainty, we are introducing a new … what they call ... Market Condition Credit Fee in Price”. Freddie sent in their notice to lenders.

Wouldn’t that be an annoying fee?

Well, almost immediately, the National Association of Mortgage Brokers struck back. They launched a campaign to reverse that newly announced one-half of one percent refinancing fee. We’ll see where that goes.

 

Now, things are really good for homebuilders these day. An index measuring homebuilder sentiment matched its highest level ever yesterday. Why? I mean, it’s simple. There is a healthy amount of DEMAND from buyers and not enough homes to meet it. 

Also, the 30-year fixed mortgage rate bottomed out at 2.88% in August, the lowest point on record. Those low borrowing rates are boosting homebuyers' appetites … obviously.

There really are a few recent stories that are de facto microcosms - reflections of this appetite for a work-from-home arrangement and less dense housing.

For example, it’s really telling to look at what the outdoor clothing and gear company, REI just did.

Do you like REI? I like shopping there. Even if you aren’t into outdoor stuff, you can always find a cool water bottle or something at REI.

Well, they just announced plans to sell the lavish corporate campus that they had just finished building near Seattle. 

REI executives concluded that employees were able to collaborate remotely better than the company originally THOUGHT ...so a massive physical HQ just wasn’t worth the cost any longer. So REI is selling what they had just built.

Other real estate segments falling out of favor - are those high-density places, like you might expect - New York City and San Francisco. 

  • StreetEasy reported that Manhattan home values dropped 4.2% since last year and homes are lingering on the market more two months longer … than they had just last year.
  • San Francisco list prices are down 5% annually, while inventory is up 96%. Yes, a near doubling of available inventory in San Francisco.

NYC and San Francisco were already the most expensive housing markets in the country BEFORE the pandemic. And life under lockdown has given people that nudge they had already been considering for years.

And then, single-family homes in outlying areas are the real beneficiaries here. There have been a number of notable milestones.

COLORADO SFH sales rose 21% July-over-July. The median price statewide in Colorado is now $444,000. Just looking at Denver, Denver just broke the $600K mark for the first time ever.

 

So, a few months into the pandemic, we’re getting a clearer sense of who the winners and losers are - a lot of them are what we expected.

 

If I had to slim it down to just a 3-word answer for you on why the rich are getting richer, those 3 words are: Federal Monetary Stimulus.

 

And the stimulus is disproportionately benefitting … asset owners.

 

Well, the pandemic hasn’t affected some real estate investors at all. Others, feel more reliant on the next government stimulus program to give their tenants the wherewithal to pay the rent. 

 

Well, if you, as an investor want to have the majority of your rent income payment guaranteed to be made by the government to you over the long-term, well, that’s what landlords of tenants with HUD-funded “Section 8” housing have enjoyed for decades.

 

You have guaranteed rent income. 

 

I think you remember that I had a turnkey provider that specializes in Section 8 housing here on the show on Get Rich Education Episode 297. So just ten show ago, which was 10 weeks ago.

 

Like any investment, Section 8 Housing is best viewed through a prism of pros and cons. 

 

Section 8 is not for everybody. Some love it, some don’t … but this provider manages the Section 8 administration FOR you. They’ve got a great relationship with the housing authority. 

 

That’s something that most landlords of this government-subsidized housing never had. 

 

“Guaranteed rent income” has a nicer ring to it than it did just a year ago.

 

Get the provider report and learn more at GetRichEducation.com/Section8

 

That’s our Richmond, Virginia provider. In fact, CNBC named Virginia as the most business-friendly state in the entire nation.

 

I’m Keith Weinhold and I’m coming back to talk to you about inflation. 

 

Again, learn more at GetRichEducation.com/Section8. This is Get Rich Education!

 

_________________

 

Hey, you’re back inside Get Rich Education. I’m your host, Keith Weinhold.

 

Both the pandemic-driven CARES Act, and whatever other monetary stimulus acts that follow … are injections of trillions of dollars into the economy. 

 

In fact, it’s now driven our national debt to nearly $27 trillion dollars.

 

Of course, this has the effect of … money printing. It’s not literal money printing. The more you learn about it, it’s often U.S. government bond issuance. 

 

A bond really just means that the government issues an I.O.U. that someone else, like China buys. 

 

Those are some of the semantics behind, what we you can really more closely think of as “currency creation” rather than money printing.

 

Will this result in inflation? That’s the big question. Well, longer-term, many think, “yes”. Short-term, “no”. We are in a low demand environment.

 

Of course, as a real estate investor, you want inflation. You might have seen on the Get Rich Education YouTube Channel where, I have visually mapped out how you win “The Inflation Triple Crown”.

 

In fact, if you just Google the three words, “Inflation Triple Crown”, you can probably see me - as the first hit on Google - and you can watch me doing the whiteboard video.

 

As you’ll remember, real estate investors win the Inflation Triple Crown because inflation provides you with: #1 Asset Price Inflation, #2 Debt Debasement and #3 Cash Flow Enhancement - that all works terrifically when you’re leveraged.

 

There are more signs of inflation out there in the economy right now than we’ve seen in the recent past. Though I still expect it to be mild as long as we’re in this pandemic-driven low demand environment …

 

The consumer price index rose six-tenths of one percent last month. That beat the two-tenths expectation that economists had had. 

 

Food are prices up substantially, and then, a substantial input to homebuilder pricing and therefore the future value of homes - is lumber - and lumber prices have been soaring higher.

 

Treasury Secretary Steven Mnuchin said that the administration is unfazed with these historically obscenely high levels of government spending … thanks to the nation’s very low interest rates.

 

See, the Fed is less concerned about mounting debt when the interest rate that THEY pay on their debt is low … much like you’re less concerned about your debt when the interest rate is so low - you might be looking to take on more debt now.

 

Of course, YOU’VE got a better deal on your real estate debt than the Federal Government does, because the Federal Government doesn’t have tenants to service their debt for them like you do in an occupied rental property. 

 

Could America reach a STAGflationary state again like it did in the 1970s? We haven’t discussed the economic phenomena of stagflation before.

 

Do you know what that is? Stagflation is a stagnant economy with inflation. That’s what it means.

 

OK, usually a more stagnant economy - like we’re in now - is characterized by low inflation due to lower demand not running up the prices of consumer goods and household staples.

 

But again, stagflation means that there’s a stagnant economy WITH high inflation. Could THAT happen this decade? 

 

To reinforce your learning here, let’s listen to the audio from this explainer video from One Minute Economics about stagflation. 

 

This is less than a minute & a half in length. 

 

https://youtu.be/YaC_PNKu_Cg

 

Yes, well, if we get stagflation, meaning again, a stagnant economy that we have high inflation, I don’t know that we’d have another Fed Chief like Paul Voelcker - who, 40 years ago, brazenly raised interest rates so aggressively to combat inflation that mortgage rates were 18% forty years ago.

 

I don’t know that anyone would prevent inflation from running away at that point.

 

But again, that’s STAGFLATION. 

 

Now, I know what you might be thinking. Maybe you’re thinking that all of the Fed currency creation to pull us out of 2009’s Great Recession didn’t produce high inflation, so why would it be any different this time, with all these CURRENT cycles of massive dollar creation once again?

 

That would be a valid thing for you to think.

 

At least based on the official government numbers, we’ve only had about 2% monetary inflation in recent years. 

 

Well, see. Though high inflation wasn’t the RESULT ten years ago, it might have actually been CREATED and you just didn’t know it. So, here’s what I mean. 

 

Say that the expansion of globalization and technological advancement REALLY meant that we had NEGATIVE 5% inflation - another way to say that is that what if we WOULD HAVE had 5 points of deflation if they’re WEREN’T any excess dollar creation?.

 

But yet, all of the dollar creation after the Great Recession caused 7% inflation.

 

Well then, 5 points of DEflation offset by 7% INflation resulted in ... 2% inflation.

 

Think about it that way. Maybe something like that is what really happened … and that is why all of today’s currency creation COULD result in high inflation. We don’t know that it will. But that’s just one reason why it COULD.

 

Now, overall, to pull back and look at the state of housing in this pandemic-driven recession. 

 

Housing has been - and continues to be - substantially better off in this recession THAN it was in the 2008 Great Recession - that event - twelve years ago, had a housing COLLAPSE as a driver. People left the keys and walked away from their homes back then.

 

Now, instead, we’ve got bidding wars for housing. 

 

I want to temper that with a reminder that the pandemic is not over yet, and it could still take an unforeseen turn.

 

The bad part about this recession is that we’ve got higher unemployment than we did back then.

 

Now, the reasons that real estate is BETTER OFF in this recession compared to the last one is:

 

  • Housing Demand Exceeds Supply - that was in the OPPOSITE state last recession.
  • Responsible Lending Prevailed - again, that was OPPOSITE of last time.
  • We’ve Got Low Mortgage Rates - lower than they’ve ever been. 
  • And We had No “Bubbly” Price Run-up before this recession, unlike what happened in the 2008 Great Recession. 

 

They are … the key differences. 

 

Coming up on a future episode here - we’re primarily a show about how buy-and-hold residential INVESTMENT property produces wealth for you - and how to avoid mistakes.

 

But so many people are re-evaluating their primary residence situation lately, that, coming up on the show, I’m going to go deep on - “Should You Rent Your Home Or Should You Own Your Home?”

 

There is some counterintuition and paradox here. 

 

I’m going to give you a new twist on the fact that - if you pay rent, that is NOT The Same As Throwing Money Away  

 

Also, some people seem to think that homeownership is like: "Renting. Except you get to keep it." That is false and that has caused millions of people to buy houses that they later regret.

 

Is your primary residence an investment? Do YOU consider it an investment? Well, in almost EVERY case it is a poor financial investment, but it could be a good lifestyle investment. 

 

So, “Should You Rent Your Own Home Or Own Your Own Home that you live in.” That’s coming up on a future show.

 

Well, regardless of your living situation, pandemic-driven unemployment might have made you realize that … you need a durable, long-term 2nd source of income - if you don’t already have one.

 

Even if you aren’t losing your job, circumstances have hit close to home for a lot of people. 

 

You can either let other people make money off your money, like the bank paying you 1% on your savings. 

 

Or you can make money off OPM (like borrowing at a 5% mortgage to invest at 11% - or hopefully, a lot more than 11% with the (up to) five profit centers that real estate has.) 

 

RE is that instrument of arbitrage.

 

As they say, you can either teach a man to fish or give a man a fish. Well, why not do both? That IS the abundance mindset afterall. 

 

At GetRichEducation.com, we teach you how to fish.

 

At GREturnkey.com, we give you a fish too.

 

What is going on at GREturnkey?

 

Well, first, get your mortgage pre-approval at a reputable lender that specializes in investment property like Ridge Lending Group.

 

You’ll see at GREturnkey.com that Birmingham and Huntsville, AL have investor-advantaged numbers that work.

 

Pockets of Huntsville may have better appreciation if they’re tied to employment in the space industry. 

 

Gosh, love him or hate him, Elon Musk gave us something to actually celebrate in an otherwise tough 2020 as he led the first private company to launch astronauts to space - emblematic of the burgeoning space industry - both Huntsville, AL and Orlando, Florida there at GREturnkey pick up on some of that.

 

We just discussed Chicago here last week. Chicago and Dayton, Ohio are two markets that keep sourcing existing inventory that they beautifully renovate, and both markets have rent-to-price ratios that are typically OVER 1%.

 

When you’re over 1% and mortgage interest rates are this low, it makes your affordability as an investor REALLY advantageous. That’s Chicago and Dayton.

 

Des Moines, Iowa is sourcing a little inventory lately - not as much as some of the other providers. That’s a stable place.

 

Florida is a bright spot for new construction turnkey property - Jacksonville, Tampa, and the aforementioned Orlando all sourcing brand new construction property. 

 

When it’s NEW construction, your insurance cost is often really low too.

 

Memphis, Tennessee and Little Rock, Arkansas are both the SAME provider there at GREturnkey - and that provider name is MidSouthHomeBuyers. There you have lower price points and MidSouth Home Buyers is so good with beginners.

 

And then, Oklahoma City - the numbers work and some media outlets have named Oklahoma City as the most recession-resistant market in America. You’re getting a 1% rent-to-price ratio there too.

 

Finally, Richmond, Virginia - I mentioned them earlier. They specialize in knowing the ways and means of how to optimize Section 8 tenancies because they have a great relationship with the housing authority there. 

 

Most, or really all of these markets that I mentioned are in the United States Midwest & South. 

 

Florida - oddly enough - is not culturally the South - though it’s the most southeastern state there is - their history of net-in migration makes them culturally disparate from what we think of as the south, but …

 

… all these markets I mentioned are in investor-advantaged metros where you generally have more stable prices, and landlord-tenant law that favors your rights moreso than the tenant’s rights. 

 

So these markets are hand-chosen pretty carefully for you. 

 

Once you’re pre-qualified for a loan, find all those providers & a few more at GREturnkey.com.

 

I am honored because you have given me something … and that is that I have had the privilege of having your time today. 

 

Until next week, I’m your host, Keith Weinhold. Don’t Quit Your Daydream!

The Remote Real Estate Investor
The Remote Real Estate Investor
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Our Top Tips for Finding & Vetting A Good Lawyer
In this episode, we wrap up our series of finding an vetting solid vendors with the lawyer. Join Emil, Tom and Michael to learn their strategy of finding a good lawyer. --- Transcript Emil: Hey everyone, welcome back for another episode of The Remote Real Estate Investor. My name is Emil Shour, and I'm joined by, Tom: Tom Schneider, Michael: and Michael Albaum. Emil: And today we are going to be continuing our series on tips for finding and vetting different members of your real estate investing team. Today we will be covering the lawyer. Let's hop into it. Michael: Tom, what is in your hand? Tom: What?! What are you talking about? Michael: Looks like you have a tail. Emil: What is going on? Michael: Is that a crop for like a horse? Tom: It's this thing called an Orange Whip. It's it's actually pretty fun. Emil: I hope you don't use it on your child. Tom: No, no, no, it's a golf tool that I just kind of hold at my desk, and it has tons of wiggle waggle. Michael: Mm hmm. Tom: So when you swing, I'm kind of a gimmick guy like a golf gimmick guy so like is that they buy something you know, like a straight jacket that helps you whatever your swing, I'll buy it. I got this thing recently called. And I'm very pro Orange Whip it. So when you swing back, this orange ball that's has like a ton of wiggle waggle. It makes really good tempo and improves your swing. So you're not coming over the top, you got a nice inside out swing. I'm funny with golf. I don't play like that often. But when I do, like, I just like, you know, go all out. And so like 10 months of the year, don't really play it. But then two months, like, oh, man, I need this gimmick. I think I figured out and yes, Michael: I was gonna say I've known you for a couple years and not once have I ever heard you mentioned golf. Tom: I mean, we must have not talked during that little month sequence that I was really into it. But as a shout out there, Orange Whip. This isn't a paid promotion. But I think if you're in a golf and you want to have good tempo, and strengthen, get an Orange Whip, I'm pro Orange Whip. So that's what's behind me. Emil: You're gonna love this. So my brother in law started this little it's another gimmick. It's called putt cup. Tom: I’m in, Ooh. Emil: So a mug that has a flat brim so you can lay it on the ground and just practice your putts. You know if you'll put mugs on the ground, but it has this flat side to it. So you get a nice roll in there. Tom: That's beautiful. At first I was thinking oh, there's a hole in the cup. So when you putt it goes in, but that doesn’t make sense. Michael: Wouldn't be a cup anymore would it? It’d be more of a funnel. Tom: Where does he sell it on? Emil: Amazon. You just go look up putt cup. Tom: I'm in. Emil: Another gimmick for you. Michael: Also not a paid promotion. Tom: Yeah, another amazon.com! Emil: Have you heard of it? Tom: Have you heard of it? Michael: It's a little book company. Emil: Small boutique retailer. Tom: Related to Amazon is this thing called fake spot. So an Amazon companies could like spam a bunch of high ratings when they have their product. But there's this thing called fake spot that you I think I posted on that Academy Slack channel that will analyze if the ratings are fake, and it gives a true ratings by looking at and getting rid of the bots. It gives you an honest take. So Orange Whip, fakespot, and Amazon. Those are my three recommendations for today. Emil: Okay, guys, well, we could be talking about golf and Amazon all day. But people are here for our real estate knowledge, or lack thereof. So let's talk about how you find and vet, a lawyer. We’ll break it down into three parts. So when in the process of your real estate investing journey or buying a property, should you look for this person? How do you source? So how do you go out and find a lawyer? And what are the best questions to ask to make sure they're legit, and can help you and be a valuable member of your team? So let's start with when in the process. Should you find the lawyer? Do you guys have went Have you guys done this in the past? Tom: All right, so I'll jump in first. If you are investing passively, you're holding properties in your own name, you know, it's not necessary that you buy them in an LLC, I would argue that within your checklist to get going as a remote real estate investor, getting an attorney in place is not high on that list. And that you don't have to do it before you start evaluating. You don't have to do it before you start buying. If you are looking to own these properties into a more complicated structure, with either LLC is sure you're going to want to have an attorney either to help you, you know, set up your LLC or using like a Legal Zoom or one of those type platforms. But if you are like myself, and perhaps you own a couple of properties, not in an LLC, you have it in your own name. It's not necessary to have get a lawyer upfront, or even after you own. You know, it really depends on what you're doing and what your threshold for risk as it relates to having things in your own name. You know, as far as timing, I would say it depends and it's not necessary to do upfront. Michael: So I'm going to take the counterpoint to a slight degree. I think it depends on what your risk tolerance looks like and what your starting assets look Like, if you don't have a whole lot to your name, it's probably less important to go chat with an attorney prior to. But if you do have a lot to your name, you could have a bigger target on your back. And so, I think just understanding what you're getting into the risks you're taking on, and what structure if any might be appropriate for you, those can all be really great questions to ask on the front end, prior to purchasing. And just as if you're looking to get involved with real estate as a whole, again, good questions, to be asking questions to go get answers to just so you're coming to the table with all the information or as much information as you can. And so having a consult with an attorney doesn't have to be yours. But one, a real estate attorney in general, can be really great, and how do I protect myself, but also understand that they are likely going to try to sell you something, all kinds of asset protection, and they often will use scare tactics. So take everything you hear with a grain of salt and go talk to other investors about what's actually happened in their world. Tom: Another thing to think about is, what are the different use cases that you're going to be using attorney with, so one of them would be on the front end, you're, you know, setting up a structure, maybe you're putting a fund together, maybe you're putting together a single member LLC, you know, that's a use case of using an attorney. And if you're not going through that, it's not necessarily that you find one other use cases that come in with an attorney is perhaps you buy a property, and there's an eviction with the tenant or some kind of issue like that, more likely than not, your property manager is going to have some legal, you know, representation, or kind of like a third party that they'll use to manage the process of eviction or three day notices and all that stuff. So it's not necessarily that you personally have an attorney to do this, your this is something that you're paying your property manager to do, they're gonna forward some of those costs to you, but they're going to get kind of better, better pricing, because they're like at scale, and probably have like, pre made templates for a lot of this kind of stuff. What other use cases would you be using an attorney with you guys think of? Michael: That's like, 85% of my experiences with it, I've used mine in an insurance issue, I had to bring in my attorney and just be like, Hey, I'm not getting the service and answers to the questions that I'm posing. And then also with…
19 min
Millionaire Mindcast
Millionaire Mindcast
Matt Aitchison
Build Generational Wealth, By Healing Generational Wounds | Yahya Bakkar
In this episode of the Millionaire Mindcast, we have a superb guest Yahya Bakkar who shares his journey of becoming a man and understanding himself, the pros and cons of social media in business, the integration between feminine and masculine energies, tips for anyone building a brand, how to figure out a business model, and what are the 5 pillars of trust in life or in business! Yahya is a family man, speaking coach, business mentor, legacy builder, and founder of Yahya Bakkar, a platform that helps experts create highly profitable impact-driven businesses that build wealth and legacy without sacrificing the freedom and time for their family. He is also one of the top speakers in the education market. Yahya’s journey and the story have always been overcoming adversity. Both of his birth parents abandoned him. He was brought from the Middle East to the United States when he was 5 years old by his Step-mom and without his dad who was too busy with business travels. He was typically a shy boy trying to fit in the new world. It was in middle school when he joined a talent show that broke him out of his shell. Accordingly, the stage became a former validation for him, where he learned how to get the attention of people. As Yahya grows older, he tries to figure himself out and becomes a people pleaser. He was constantly disturbing by what other people thought about him, especially his father. Their closest bond was only when he joined taekwondo and became a black-belter. Yahya’s dad thought that he needed to provide a living and protect his family but his way to justify it is by working 24/7. At 14 years old, Yahya was left alone by his father for out-of -country works. This made him an early bloomer and a rebel. At an early age, he experienced sex, and partying, and do things without boundaries. Only he found the right path and clarity when he met his childhood sweetheart and now his wife. He realized that at an early age, no one’s going to save him. Therefore, he had to be self-reliant, resilient, and to be completely accountable to his own life. Yahya reminded himself that he still has control over and it’s his mindset. He wanted to start a clean life free from negativities. So, he decided to get into different types of therapy to heal himself emotionally, and mentally. This was his way of healing generational wounds. He believes that he must handle it first in order to build an amazing family and life contrary to what his father did although he learned a lot from him. In 2011, he started his speaking career. Later in 2017, he began building a brand that leads to hundreds of speaking events all over the world. However, Yahya believed that this was not him. He wanted to take off the masks he was wearing to show his authentic self. His first move was publishing a video about his secret addiction to porn that resulted in a loss of 80% of booking which he completely understands. Relative to this, business models are a big thing to Yahya. Therefore, he shifted his business model in order to support his vision of raising a family and being always present with them. Yahya started a social media video challenge and was able to crack the code on how social media works. As well as how to build a multiple 7-figures coaching consulting business using it. Yahya is now working online from home for three years. Being a student of life, this man is constantly learning. His mission to himself and to other people is to help them not just build generational wealth but also build a legacy without sacrificing your family, being rich in emotional accounts, navigating relationships, and winning challenges through integration between feminine and masculine energies! Some Questions I Ask: * Where did this all begin for you on your own entrepreneurial journey of building the brand of Yahya Bakkar? (01:03) * What are your overall thoughts right now on the social world and what people should be aware of how it ties in their definition of what wealth is and they can create for themselves? (20:11) * You have that infectious energy, is that something that you always felt that you had? (21:26) * How do you manage the balance of this all-inclusive lifestyle? (41:56) In This Episode, You Will Learn: * Yahya as a people pleaser (04:59) * The powerhouse of building a legacy (10:14) * Integration of both feminine and masculine energies (11:03) * Personal Development versus Self-Improvement (14:53) * The two (2) goals of Yahya (22:32) * The pros and cons of social media into business (30:22) * "Every social media platform is going to have its time" – what does it mean (32:24) * Yahya’s advice for anybody who is building a brand (37:50) * The checklist of figuring out a business model (45:17) * 5 pillars of trust in life or in business (47:34) * A-L-I-V-E: What does it mean and how it integrates energies (48:00) Quotes: * “Every adult is also a child disguised as an adult.” * “I’m a student of life and I will always be a student of life.” * “We’re all grown through what we are going through.” * “Energy cannot be created or destroyed, it can only be transformed or transferred.” * “You are never as good as people think you are, you are never as bad as people think you are or say you are..” * “Your brand, you are a business.” * “It’s not about how much you make; it’s how much you keep.” * “Make sure that you have the right business models, so you can become the best role models for the ones you loved.” * “Business has always been relationships; trust has always been the currency.” * “A legacy is about building generational wealth and healing generational wounds.” Connect with Yahya Bakkar on: Website Instagram LinkedIn Facebook YouTube
1 hr
The Tom Ferry Podcast Experience
The Tom Ferry Podcast Experience
Tom Ferry
EP. 93 How To Become a Great CEO and Grow a Real Estate Company with Mary Lee Blaylock
Being a great leader requires many skills and components to succeed with your team and business. In today’s episode of the Tom Ferry Podcast Experience, I had the opportunity to talk with Mary Lee Blaylock, President and CEO of Berkshire Hathaway HomeServices California Properties. As one of the most respected and knowledgeable leaders in the real estate industry, Mary Lee shared a vast insight into successfully starting, growing and taking your real estate business. Mary has an extensive and amazing real estate career, from being Vice President of Edina Realty Inc. to Vice President of HomeServices of America to her current role in Berkshire Hathaway HomeServices. She opened up about her first year of real estate and the hurdles she had to overcome to grow her real estate career and being a young woman and leading a team of older real estate professionals. In this illuminating conversation, Mary Lee provided her valuable insight on working smart, how to become a great leader, and preparing your team to be ready to pivot for any upcoming changes that the market can present. As a powerful leader, she also shared how she manages to focus her time as a wife, mother, and CEO. We also covered the importance of learning the inside out of the company you are growing, refining the skill to say no, and developing your career in your company. If you’ve been thinking of taking the next step in your career or opening your own business, then this episode is for you! As always I took a bunch of notes and I know you will too, so share with me what golden nuggets you’re taking from Mary Lee to take your leadership skills to the next level.
1 hr 2 min
Master Passive Income Real Estate Investing in Rental Property
Master Passive Income Real Estate Investing in Rental Property
Dustin Heiner
Become a Millionaire Starting With $0 Investing In Real Estate
These are the exact steps I took to become a millionaire by the time I was 34 years old. It took hard work and determination and if you apply yourself to these steps, you can become a millionaire too. Get the Free Real Estate Investing Course: https://www.masterpassiveincome.com/freecoursep Join the Real Estate Wealth Builders Investor Membership https://www.masterpassiveincome.com/buildersp // WHAT TO WATCH NEXT How to Become Successfully Unemployed: https://youtu.be/wx5Ke9KVs58 Get Money For Investing in Real Estate: https://youtu.be/u4IY5UMDkrI How to Start Investing In Real Estate: https://youtu.be/fJVOeSgXZRQ How to Analyze a Real Estate Investing Deal in 5 Seconds: https://youtu.be/SqA1HcAW4EI How to Set Up Your LLC for Your Business: https://youtu.be/B9RzLkAZI9s How to Use Owner Financing to Make Loads of Money: https://youtu.be/qAOpCOWvj6Q //BEST REAL ESTATE INVESTING RESOURCE LINKS Free Property Find Deals On Properties: https://masterpassiveincome.com/propertysearch Get Business Funding https://masterpassiveincome.com/fundandgrow Great High Interest Savings Account: https://masterpassiveincome.com/cit Accurate Rental Rates: https://masterpassiveincome.com/rentometer Self Directed IRA for Real Estate Investing: https://masterpassiveincome.com/rocketdollar Learn more about Dustin and find resources to build an automatic real estate investing business: https://masterpassiveincome.com Join our free private Facebook group! https://masterpassiveincome.com/group #realestateinvesting NOTE: This description may contains affiliate links to products we enjoy using ourselves. Should you choose to use these links, this channel may earn affiliate commissions at no additional cost to you. We appreciate your support!
19 min
Real Estate Investing for Cash Flow with Kevin Bupp
Real Estate Investing for Cash Flow with Kevin Bupp
Kevin Bupp
#294: How to Leverage Commercial Real Estate Investments to Get You Out of Your Dreaded W2 Job – with Brian Hamrick
This week's episode of the Real Estate Investing for Cashflow Podcast features Brian Hamrick.& Brian Hamrick is the owner of Hamrick Investment Group, which controls over $32 Million in assets, including Multifamily and apartments, Self-Storage, Office, and performing and Non-Performing Notes. Brian currently asset manages 370 apartment units in Grand Rapids Michigan and successfully transitioned from his W-2 job to full-time real estate investing in 2014. In addition to his real estate endeavors, Brian also hosts a popular real estate investing podcast which can be found on iTunes and all other listening platforms. Quotes: “So, I had all this money that was sitting in a bank account and I realized; I don’t know what to do with this. I didn’t even know what a Mutual Fund was at the time and I was 30 years old. So, I just starting learning and investigating.” So, automating it really just made things so much easier, streamlined everything, and now we don’t need to have anyone on site except maybe a couple times a week to make sure it’s clean and sweep out empty units. Highlights: :40- Brian's background 9:28- Brian tells us what his favorite market is 15:27- Brian talks about if his new model is scalable and replicable 22:11- Brian gives his opinion on foreclosures and non-performing notes skyrocketing as a result of the pandemic 26:15- Brian tells us what asset classes he thinks will thrive in the pandemic 30:53- Brian tells us about a bad deal he had and how he got through it www.higinvestor.com Learn About Investment and Partnership Opportunities with Kevin and His Team
45 min
Be Wealthy & Smart
Be Wealthy & Smart
Linda P. Jones
The Coming Bull Market in Commodities in 2021
Learn why commodities are predicted to be a hot investment in 2021. One investment firm predicts commodities will rise 30% in 2021. Find out why and why I agree with them. The article is here. Are you investing well for financial freedom...or not? As we live our lives, we have seen enormous money be made in real estate, technology stocks, etc. and have seen wild swings in markets before. They can feel scary at the time, but in hindsight are often tremendous opportunities for future financial success. If you only knew where to invest for the long-term, what a difference it would make, because the difference between investing $100k and earning 2% or 10% on your money over 30 years, is the difference between it growing to $181,136 or $1,744,940, an increase of over $1.5 million dollars. Your compounding rate, and how well you invest, matters! INTERESTED IN THE BE WEALTHY & SMART VIP EXPERIENCE? -Asset allocation model with ticker symbols and % to invest -Monthly investing webinars with Linda -Private Facebook group with daily insights -Weekly stock market commentary email -Lifetime access -US and foreign investors, no minimum $ amount required For a limited time, enjoy a 50% savings. More information is here or have complimentary consultation with Linda to answer your questions click here: https://2909395.survey.fm/application-for-vip-experience PLEASE REVIEW THE SHOW ON ITUNES If you enjoyed this episode, please subscribe and leave a review. I love hearing from you! I so appreciate it! SUBSCRIBE TO BE WEALTHY & SMART Click Here to Subscribe Via iTunes Click Here to Subscribe Via Stitcher on an Android Device Click Here to Subscribe Via RSS Feed WEALTH HEIRESS TV Please subscribe to Wealth Heiress TV YouTube channel (it’s not just for women, it’s for men too!), here. PLEASE LEAVE A BOOK REVIEW Leave a book review on Amazon here. Get my book, “You’re Already a Wealth Heiress, Now Think and Act Like One: 6 Practical Steps to Make It a Reality Now!” Men love it too! After all, you are Wealth Heirs. :) Available for purchase on Amazon. International buyers (if you live outside of the US) get my book here. WANT MORE FROM LINDA? Check out her programs. Join her on Instagram. WEALTH LIBRARY OF PODCASTS Listen to the full wealth library of podcasts from the beginning. Use the search bar in the upper right corner of the page to search topics. TODAY'S SPONSOR I want to take a few seconds to tell you about how I “read” more books and stay ahead of the curve. It’s by not reading books, but instead listening to them – like you are right now! With Audible, there are over 150,000 titles to choose from for your iPhone, Android, Kindle or mp3 player and…your first audiobook is FREE! I suggest you get the audio book of Think and Grow Rich, or you can check out my website Resources page where I list all of my favorite financial books and you see exactly what books I have read and recommend you read. Then get started with Audible by visiting https://lindapjones.com/FreeBook and order your first audio book free! Get Think and Grow Rich or another book from my recommend list, and be sure to get started checking off the books you want to read with your free book from Audible! Be Wealthy & Smart,™ is a personal finance show with self-made millionaire Linda P. Jones, America’s Wealth Mentor.™ Learn simple steps that make a big difference to your financial freedom. (Some links are affiliate links. There is no additional cost to you.)
18 min
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