Get Rich Education
Get Rich Education
Mar 16, 2020
284: Coronavirus And Your Money
Play episode · 41 min

The novel coronavirus threatens life, business, and the economy.

11 years of U.S. economic expansion could end soon.

(**The entire episode transcript is below. You can read along as you listen.)

Closed businesses mean that supply chains are disrupted. This could make it difficult for flippers and value-add apartment projects.

Travel, hospitality, and leisure business troubles mean that short-term rentals like AirBnB will have high vacancies. 

Short-term rentals cater to business travelers and vacationers - both vulnerable in this downturn.

Long-term rentals are better positioned. As long as people are alive, they need a home.

Mortgage interest rates have hit their lowest rate EVER since they’ve been tracked in 1971.

The Fed made a 0.5% emergency rate cut. Expect more cuts. This punishes savers and rewards borrowers.

Stocks recently fell more than 20% from their recent high; that's the definition of a bear market.

Coronavirus’ effects are fast-moving and no one really knows the future. This is uncharted territory.

With this in mind, I’d expect real estate to fare better than other asset classes. Also expect:

Stronger: dollar, bonds, gold. 

Weaker: many stocks & businesses, short-term rentals, oil, silver.   

The unemployment rate will likely rise; I discuss what this means for your tenants.

Low mortgage interest rates can be locked in for 30 years, outlasting the coronavirus pandemic.

Check out our two new property providers in Orlando and Des Moines: getricheducation.com/orlando and getricheducation.com/iowa

__________________

Resources mentioned:

Properties, with two new markets:

www.GREturnkey.com

Recommended Coronavirus resource:

Peak Prosperity YouTube Channel

Mortgage Loans:

RidgeLendingGroup.com

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Complete episode transcript:

 

Welcome to Get Rich Education. I’m your host, Keith Weinhold. The coronavirus, COVID-nineteen, has infected humans and financial markets too.

 

This creates both problems and opportunities for you, the investor. Today, on Get Rich Education.

 

Welcome to GRE. From Uruguay to the Ukraine to the UAE to the USA and across 188 nations worldwide, this is Get Rich Education. I’m your host, Keith Weinhold. 

 

Yeah, you’re back in that abundant place, where your QUALITY OF LIFE exceeds your cost of living.

 

The novel coronavirus (COVID-nineteen) that began in Wuhan, China in November of last year when it transferred from animal to human is poised to affect the economy of every world nation and every U.S. state.

 

It's not SARS or Zika.

 

This transmits easily and it is perhaps 20x more deadly than the common flu.

 

Some experts believe it's the worst outbreak in America since the Spanish flu of 1918.

 

That was the worst pandemic of the 20th century.

 

And you know what, it didn’t have to be this way ... with coronavirus. 

 

As my chief informant on the matter, Dr. Chris Martenson says, it didn’t have to be this way.

 

Often placing the economy ahead of human life, health organizations and governments have often done a DEPLORABLE job of handling this, often understating the threat.

 

The World Health Organization was even reluctant to acknowledge that the coronavirus is a global pandemic … which it surely has been for a long time. Well, they only acknowledged that five days ago.

 

Well now that agencies weren’t preparing people sooner - coronavirus is poised to threaten even more people - which in turn, will make the economy even worse than if the threat had just been accurately represented in the first place.

 

I’m going to focus on coronavirus’ likely effects on real estate and the other financial markets shortly.

 

But let’s - you and I - outline this together first.

 

The virus causes only mild or moderate symptoms for most people, like a fever and cough …

 

… but it can progress to serious illness including pneumonia, especially in older adults and people with existing health problems. 

 

The World Health Organization says mild cases last about two weeks, while most patients with serious illness recover in about three to six weeks. Based on what I said earlier, consider the source there.

 

My heart goes out to the victims of this - past, present, and future.

 

The most credible source that I follow thinks that the virus will reach its peak in the U.S. 1 to 3 months from now.

 

I've followed this story closely since January and if you receive our Get Rich Education newsletter, you’ve known for a while that my favorite source of TRUSTWORTHY coronavirus information was and still is: the Peak Prosperity YouTube Channel, which Chris Martenson hosts.

 

In fact, I’ve mentioned that resource in our GRE newsletter for you twice - the first time was back on February 6th.

 

So if you get the Get Rich Education Newsletter, you’ve had plenty of time to get in front of this.

 

You know, it’s interesting. I had Chris Martenson on the show here earlier this year and we talked about “The Fed” printing money. That was right before coronavirus literally went viral.

 

Before I tell you about the affects on your real estate - both good and bad - let’s establish a baseline here.

 

Coronavirus is threatening because it has a substantially higher R-naught value than the flu. 

 

If the R-naught value is greater than 1, that means that one infected person will spread the virus to MORE THAN one person then the disease can spread.

 

The way a virus dies out is for it’s R-naught value to be less than 1. Then, one infected person, on average spreads it to fewer than one person.

 

Well, the common flu has an R-naught value of about 1.3.

 

Coronavirus (COVID-nineteen) is believed to have an R-naught value of more than 3 and maybe even more than 6. So it spreads easily.

 

It spreads asymptomatically - and that’s bad. 

 

There’s no vaccine available - and most believe it’ll take a while to develop one.

 

And, you can find resources elsewhere on how to prevent the spread like social distancing, avoiding gatherings, and lots of handwashing.

 

But because this is an investing platform and I don't have a degree in pathology or epidemiology, and much of what I just told you there, I learned myself in the past month or two …

 

Let me now get into my lane: how do I think coronavirus will affect your money and your real estate?

 

Well, it probably already has.

 

Businesses are closing. Colleges have suspended classes. Many events are being cancelled or postponed. 

 

SXSW in Austin, Texas was one of the first major EVENTS to be cancelled in the U.S. March Madness basketball won’t have any crowd there.

 

We’ve got an entire country - Italy - that’s essentially shut down.

 

When businesses close and more people work from home, this disrupts supply chains. 

 

That COULD include less supply of sheet rock or faucet handles or whatever - and affect value-add properties because so much building material comes from China.

 

It could be a tougher time to be a flipper then if you’re about to start a rehab or if you’re in the middle of a rehab.

 

If you're upgrading an apartment building, that could slow things down. You need materials. 

 

This may or may not create disruptions for turnkey property providers. We’ll see. 

 

You’re in a better position if you’re a prospective turnkey buyer waiting on a rehab - maybe that’ll create a delay until your property is ready. Maybe it won’t.

 

China accounts for nearly 30% of world manufacturing.

 

But importantly, they also make component goods for finished products.

 

An American car can't be finished if it doesn't have the battery and exhaust system from China.

 

Virtually every major car company has a component made in China. 

 

Now, I see conflicting reports of whether some previously closed Chinese businesses have really come back online or not. We need to learn more there.

 

Travel, hospitality, and leisure businesses are already hurting. 

 

Now, where hospitality meets real estate, we’ve got hotel rooms, Bed & Breakfasts and short-term rental platforms like AirBnB and VRBO.

 

Like I’ve said before, and not too long ago on the show at all - is that these short-term rentals are not very recession-resistant.

 

That’s because short-term rentals cater to two main groups of people - business travelers and vacationers. That’s who occupies those properties.

 

Well, what are business travelers and vacationers doing right now? They are postponing travel or cancelling travel left-and-right due to coronavirus concerns.

 

How great would you feel about owning AirBnBs right now?

 

Short-term rentals like AirBnBs are not as recession-resistant as long-term rentals.

 

Just a couple, three months ago, it probably sounded different to you when I mentioned that short-term rentals aren’t very recession-resistant. 

 

Because perhaps you were still feeling good about our 11-year-long economic expansion.

 

But those same words probably sound and feel different to you now that some think that a coronavirus-induced recession could even be imminent - though that remains to be seen.

 

Also, expect big hits to: chemicals, pharmaceuticals, and electronics.

 

Apple Corporation is so dependent on Chinese manufacturing for their iPhone. That’s the bad news.

 

Now, let’s talk about the good news.

 

Mortgage interest rates have hit all-time lows - yes, lower than their lows that they hit in 2012, shortly after coming off of the Great Recession.

 

All-time lows - as long as Freddie Mac has been tracking them - which is since 1971. They’ve never been lower than they are now. 

 

Today, you can get a rate in the low 3s for primary residences, I’ve even heard of a few people closing 30-year fixed amortizing loans for less than 3%. Just astoundingly good.

 

And of course, investor loans are often about ¾% higher than those.

 

The Fed has been pumping tens of billions, even hundreds of billions into the system lately … for bank liquidity.

 

The Fed's emergency interest rate cut of 0.5% two weeks ago is first time we've seen such a move since 2008. 

 

That 2008 cut was in the wake of The Great Recession - that was the Lehman Brothers emergency one-half-of-one-percent cut.

 

Just a quick economics primer if you’re a new listener - lower interest rates for loans stoke the economy because they make you more willing to borrow & spend.

 

Interest rate cuts help the investor class like you, and not poor people. That’s just the truth behind who cuts actually help. It’s you!

 

It helps the Get Rich Education listener - you again - even more because we’re such strong proponents of responsible and sensible borrowing here.

 

Now, note that lower rates don’t help contain the diseas. If your grandparent gets sick, Jerome Powell’s decisions aren’t going to help that.

 

Right, how low would rates have to be to get you to travel to China or Italy tomorrow?

 

By the way, after the rate cut, President Trump was not satisfied with the amount of easing and cutting.

 

“More easing and cutting!” is what he tweeted following the central bank’s announcement.

 

But realize, of course, that long-term mortgage rates don’t move on that Fed Funds rate. The Fed controls the short-term rate - though there’s generally still a correlation there. 

 

Long-term mortgage rates - like the ones that you really care about for real estate - they move with bond yields.

 

Now, bonds are like the boring can of beans or soup in the finance world - they’re safe and they’re stable.

 

Vigorous bond-buying makes bond prices go up and makes bond yields go down.

 

So this strong bond-buying … this safe have ... has dropped the 10-Year Treasury Note yield below 1% for the first time ever … and it’s fallen substantially below 1% in just a fantastic fall off the table.

 

OK, so they’re below 1% - and that’s a rate that was unthinkable just a few months ago. 

 

Do you know what the average spread is between this bond yield and the 30-year mortgage rate?

 

On average, mortgage interest rates hover 1.8% above this rate, so you can see how low we could be going.

 

I think that the historic spread will widen, but despite the fact that we now have record - I mean all-time record low mortgage rates, there’s a good chance that they’ll go a little lower yet.

 

This is great for your new real estate buys. Refinance activity is surging right now.

 

But back to short-term rates that the Fed influences - more cuts there seem imminent too.

 

The next one could happen at the Fed's regularly scheduled meeting, which happens tomorrow and the next day.

 

So you’ll hear an announcement from The Fed this Wednesday about their rate cut decision.

 

The Fed loaded up with dry powder in 2018 when they raised rates, so that they can lower them at a time like this.

 

Every time they cut the rate like this, it punishes savers and rewards borrowers.

 

No one knows if rates will go negative - and only a few places in the world have those right now: places like Japan, Denmark, and Switzerland. We’ve never had them in America.

 

U.S. stock market investors are getting killed with all this uncertainty. Indices are whipsawing with volatility.

 

Fear pushes stocks around, but not RE. The U.S. stock market dropped 3% in just minutes when a report came out that in CA, a large number of people were exposed to coronavirus, but weren’t. 

 

Last week was the first time that major stock indices dipped into bear market territory. That’s defined as a 20% loss from a recent high.

 

There was one recent trading day - just one day - where the S&P dropped 7%, triggering a circuit breaker, which paused trading for everyone for 15 minutes. 

Yeah, now we’re talking about all these automatic fail-safes. When the stock market loses so much, so soon, there’s a pause in trading.

By the way, the way it works is that if the S&P had declined 13% in a day, trading would’ve paused another 15 minutes. 

20% in a day, and everyone would have gone home for the day. That’s how it works.

Yeah, they put those circuit breakers in place after 1987’s Black Monday, when the market fell between 22 and 23%. 

Stock drops are always sickening,l and if you’re within 5 years of retirement, stock drops are really scary.

I’ve told you before that I haven’t owned any stock, mutual fund, or ETF since 2014 and that’s still true today.

Being in something stable like real estate has rarely felt as good as it has lately.

 

And you know something, “volatility” is a funny word. 

 

It seems like “volatility” used to mean something that changes rapidly, and anymore, it’s morphed into something that only means a change for the worse.

 

Warren Buffett says, "The stock market is a device for transferring money from the impatient to the patient." 

 

I believe that. I’d even say that - not just the stock market - but just that, “MARKETS OVERALL are devices for transferring money from the impatient to the patient.” 

 

Real estate investors like us are more patient. There’s no flash-selling in real estate. It might take you 30, 60 days or more to sell a property … or to buy a property.

 

I’d expect to see a stronger U.S. dollar because the world views it as a safe haven asset. 

 

I expect this to be a nice tailwind for real estate too, because the world views U.S. real estate as a safe haven asset in times of uncertainty.

 

Gold should be strong with coronavirus concerns. That’s easy to say, since gold is the classic safe haven asset.

 

But remember that gold might not APPEAR stronger to Americans if the dollar strengthens. 

 

That’s how it works. Because if gold goes up 10% and the dollar also gets 10% stronger, well then it takes just as many dollars to buy the gold.

 

The dollar-denominated gold price would look the same then.

 

I’ve read that a number of experts predict silver prices to rise on coronavirus concerns, but then I don’t see any sound rationale for them thinking this. 

 

I disagree. I would NOT expect silver to rise.

 

That’s because silver has more industrial use than gold and more industrial slowdown is expected.

 

Let's talk more about your income properties in this coronavirus environment.

 

Though I'm speculating now, what if your tenant is required to self-quarantine at home and they lose their income?

 

This is not far-fetched.

 

Washington state officials were really some of the first in the U.S. to recommend that workers stay at home when they suggested that Seattle-area residents work from home.

 

More & more people can work from home today than anytime in modern history. 

 

But when we’re talking about your tenants, it's unlikely that all of your tenants will lose substantial income.

 

Now, there are some positions where people can’t work from home so well, like mechanics, janitors, chefs and wait staff, sure. Let’s consider that ... 

 

The current unemployment rate is 3.5%. 

 

I’m really speculating here, but if 1 in 10 of your tenants is both laid off & without income, that’s a 10% increase in unemployment. That would be huge.

 

That would be like the unemployment rate going from 3.5% all the way up to 13.5% - which seems unfathomable!

 

And yes, realize that if 1 in 10 people were laid off it wouldn’t exactly make the 3.5% unemployment rate shoot up to 13.5%. It doesn’t exactly work that way with how it’s calculated. 

 

But, I think you get my point.

 

If 1 in 10 of your tenants were both laid off and without employment, that would be massive. So keep that in perspective. Even 1 in 10 would be a lot.

 

Last week, Trump floated the idea of a payroll tax cut, which I don’t think would do much of anything to help - and also, extending paid leave which seems more helpful.

 

Companies, especially those in the service sector, are under pressure to provide paid sick leave to workers who may not be in a financial position to take time off. 

 

Wal-Mart and McDonald’s put in safeguards for their employees.

 

Congress might step in. A bill has been introduced that would require companies of all sizes to provide paid sick leave.

 

Could your overall rental income go down? Maybe, though you have to speculate quite a bit to even think that 1 in 10 would go without an income. So that’s a maybe.

 

But does your mortgage interest rate go down? Definitely. It already has.

 

What about you?

 

If you lose your job, you need multiple income streams ... from places like your rentals.

 

And if 9 out of 10 … or 10 out of 10 of your tenants still have jobs, you probably still have that income stream because you set up your life for multiple income streams if you’ve been listening to this show & acting.

 

What about you - what about your job? Well ...

 

The lower your financial freedom, the higher the risk.

 

The more income streams you’ve built, the better off you are.

 

What about your job? The lower your financial freedom, the higher the risk.

 

Another benefit of a paid sick leave movement gaining momentum, is that “When people gain access to paid sick leave, the spread of the flu decreases.” 

 

Because they’re more likely to stay home then. So that makes paid sick leave seem like more of reality.

 

It’s important in this situation that when you have people who have symptoms and don’t feel well, that they do not go to work and spread diseases to slow the infection rate and buy time for public health officials to develop a vaccine.

 

Let’s look at oil prices - because that’s a substantial input to inflation and oil is a real proxy for what’s going on in the economy.

Oil prices have crumbled faster than a Nature Valley Granola bar.

And that’s even before a coronavirus-induced slowdown. 

What’s happened, is that with President Trump in the White House and the Republican Party controlling the Senate, environmental activists have shifted their focus from pressuring the government to pressuring the private sector instead. 

Since JPMorgan is such a big financier of the fossil fuel industry, activists have really turned up the heat on them and other big banks to stop financing oil projects.

That’s significant - on top of a slowdown in the economy - if fewer goods need to be produced and shipped, it uses less energy and then there’s less demand for oil.

Low oil prices are generally good for consumers but bad for producer countries. 

 

In the U.S., low oil prices are not good for real estate in areas like west Texas, parts of Louisiana, and Alaska.

 

But, of course, there’s the flip side of all this. At some point, low stock and oil prices mean that bargain hunters come in to float the market again at some point.

 

In fact, billionaire investor Sam Zell recently made remarks that oil looks like a “buy low” opportunity.

So let’s look at the bottom line - real estate is still quite well-positioned as long as you’re in residential, long-term rentals that you bought for cash flow.

Elsewhere: Bonds win, gold wins, the US dollar wins, many business sectors - like the ones I mentioned - lose, stocks lose, oil loses, and silver loses.

 

Of course, let me qualify all that by telling you that that’s my outlook and that we don’t have any recent precedent for anything else like the coronavirus. No one REALLY knows. That’s my take.

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If you happen to be a new listener to the show, you may not know much about me. I’ve authored many written articles for both Forbes and the Rich Dad Advisors.

 

Business Insider recently wrote two stories about me and Get Rich Education - and how I’ve helped everyday people create financial freedom through real estate investing. 

 

That’s what I do here!

 

I’m a current member of the Forbes Real Estate Council. 

 

But maybe the more important things I can tell you are that I’ve been the host of this show every week - and I mean EVERY week continuously since 2014 - you can count on me to keep showing up here.

 

I own three real estate trademarks. In 2017, I authored an international best-selling book on how real estate makes ordinary people wealthy.

 

And perhaps the most important thing I can tell you is that I invest right alongside you, from the exact same providers that we talk about here.

 

Though I travel pretty well, I’ve lived my entire life in the United States, dividing this life of mine between two states - Pennsylvania and Alaska.

 

I have spent the last 2-and-a-half weeks visiting four countries - the United Arab Emirates, Oman, India, and Sri Lanka. Though I’m a real estate guy, I have a degree in geography so I like to travel.

 

One of the coolest things I did is sandboarding on a sand dune in the Arabian Desert there in the United Arab Emirates. 

I couldn't find another interested person, so I did that activity all by myself. Going high in the world's tallest building, the Burj Khalifa in Dubai, was a “must” while we were there.

Muscat, Oman has some surprisingly beautiful sights, and buildings, and mosques that we toured. Really clean-looking there in the nation of Oman.

Immersing myself in Indian culture is something that was really novel to me - the food, the way that - the women especially in some of these outlying provinces like Goa and Kerala, India - the way the women dress in such colorful outfits ... just if they’re walking to the market to buy some guava. Such an exotic feeling there.

The coolest thing that I did is visiting the world's largest slum. It’s called Dharavi and it’s in Mumbai, India. It's just sooo different from my world. 

There are actually bustling little businesses inside the slums there - from plastic recycling to pottery. And the Indian people were so welcoming - even in the slums - which was just amazing to me.

As I like to say, seeing poverty enriched me.  :o)

I’ve got more on coronavirus and your money straight ahead.

A fair bit of what I’ve discussed here about coronavirus and your money and your real estate, is material that I sent in our wealth-building Get Rich Education newsletter about 12 days ago.

The newsletter is a nice, written supplement to the podcast. Of course, you can unsubscribe at any time - but very few do.

My wealth-building newsletter is something that you can subscribe to … for free … at GetRichEducation.com   You’ll be glad you did.

You’re listening to Get Rich Education.

_____________________________________

 

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

 

It’s unknown whether coronavirus will tilt the economy into a recession or not. It’s too soon to know. I’ll keep you updated on that here, of course.

 

For you, I think it helps to listen to a perspective that’s invested through a recession before.

 

I’ve been investing directly in real estate since 2002 - which was before the Great Recession.

 

I made a major income property purchase in 2007 - which was just within that recession (in fact, I mentioned that four-plex purchase last week on the show).

 

And I kept buying in 2010, as the recession wound down - and in 2012.

 

Well, what’s the common thread there? It’s that I continued to prosper because I bought for cash flow first.

 

It’s that I bought in multiple geographic markets for diversification - a recession-resilient strategy.

 

Residential rentals that were leased to long-term tenants.

 

People need a place to live. And as long as they're alive, a virus is not going to change that.

 

But see, a virus might mean people stop using vacation rentals and stop taking business trips and stop going to the mall and stop going to the office to work.

 

We’re talking about HOMES. Well, we could soon have more people working from … home. 

 

Not office, not retail, not short-term rentals. They all look vulnerable now.

 

And by the way, that doesn’t mean I’m a permabear on those asset types. There’s always opportunity. But recession-resistence just isn’t one of their qualities.

 

I’m not saying short-term rentals never make an ounce of sense or anything like that.

 

Some companies are basically using the coronavirus as an experiment for that moment when “working remotely could broadly replace working in-person.”

 

Some people think that time is coming.

 

This can ACCELERATE THE - you’re seeing the acronym “WFM” around a lot more now - 

 

  • the “work from home” movement. As people get more used to using workflow software and using platforms like Slack or Trello from home because they HAVE to, you know, when coronavirus passes - and it will - some might ask, now why return to an office all?

 

With each passing day, the camp of people believing that this is all fear-mongering loses troops.

 

We’ll see if the peak for coronavirus will be that 1-3 months from now like some experts predict. That’s the latest I’ve heard from credible sources. But again, we really don’t know.

 

That’s why I like to focus on things that we do know. So let’s focus on what we do know now:

 

The coronavirus threat will pass sometime. We just don’t know when. But it will pass.

 

A second thing we know is that people will continue to need a home - a place to live.

 

And thirdly, mortgage interest rates have hit their lowest level in American history.

 

So with those being the things that we DO know - this can be QUITE an opportunity to not only lock up investment property buys at historically low rates, but potentially, do that cash-out refinance of your existing home if you think that that’s in your best interest.

 

Procrastinators often aren’t rewarded. But, hey, maybe you are this time with rates being this low - or maybe you really weren’t because you had dead equity accumulated in one place for too long.

 

With borrowing rates underneath the basement, a lot of homeowners are racing to lock in cheaper loans. 

I think we could see low to mid 3% rates on investment properties, and below 3% on primary residences.

Mortgage refinancing applications have more than doubled in volume from the same time last year - that’s according to the Mortgage Bankers Association.

And industry records are being shattered. Bloomberg reported that : 

The country’s No. 1 mortgage lender, Quicken Loans, recently had its busiest day for mortgage applications in its 35-year history.

United Wholesale Mortgage approved a single-day record of $2.5 billion in loans. 

These stories are all over the place.

The thing is, to process this flood of applications you’re going to need a lot of people. So the mortgage industry is on a hiring spree to take advantage of the gold rush.

Our preferred mortgage provider is doing a lot of volume now as well - RidgeLendingGroup.com - that’s R-I-D-G-E.

Just calculate your ROI just from principal reduction alone at these low rates. It’s pretty remarkable. 

I think that the thing that you need to remember is … that long-term thinking.

"Investing should not be about a MOMENT; it should be about a PROCESS OVER TIME.”

Some of the classic problems with GETTING STARTED in real estate are ones that I’ve helped solve for you here.

 

I think that Problem 1 for people is that they feel like it costs a small fortune to GET started. 

 

Problem 2 is FINDING the property. Often times, it’s because properties in your area don’t make sense with your 20% down payment and 80% loan.

 

I’ve really helped solve both of those problems. 

 

By selecting investor-advantaged markets, with down payment & closing costs you can get started with as low as … about $18K - and they’re in areas where the numbers make sense … all at the website … GREturnkey.com

 

In fact, at the top of the page there, there’s that 8-step flowchart where I walk you through the process.

 

You start by getting pre-approved for a mortgage - I even suggest where - and then reading an investor due diligence report …

 

… all the way through to viewing properties, making an offer, getting your third-party inspection, appraisal, signing your Management Agreement, Closing on the Property … and then the really good part - years of owning and collecting the rent. 

 

It’s rarely been easier - though the process still takes time & you need to supply your mortgage loan underwriter with plenty of documentation.

 

That’s all outlined at the same place where I buy my property: GREturnkey.com

 

What about some current highlights over there?

 

Well, it’s a great time to invest in Florida for a lot of reasons - you’ll find providers in Tampa, Orlando, and Jacksonville.

 

Our Orlando provider was recently added - they’re now - and they have NEW CONSTRUCTION - yes, newly-built, never-before occupied - single-family homes and duplexes … and they’re in locations from the Space Coast to The Villages, through Orlando, and nearly out to Tampa. 

 

We’ve got another new provider on the page if you’re looking for more cash flow and less appreciation than what you’d typically get on new construction, and that is in … Iowa.

 

Yeah, I’m proud to introduce the Des Moines, Iowa market to you today. 

 

It’s a model of midwestern stability and Des Moines has an MSA population of 600 to 700,000 people.

 

Des Moines has seen an average 3.6% appreciation over the last twenty years. I think of it as a cash flow market.

 

A lot of times, you might be buying for, say a 4 or 6 or 8 or 10% cash-on-cash return today. 

 

If you have a little more patience and you want to potentially double your CCR, then, rather than the turnkey model - where you buy a property that’s already renovated - you might prefer the BRRRR model.

 

That stands for Buy – Renovate – Rent – Refinance – and Recycle Model - recycling your money to re-use right away. 

 

That BRRRR model is suited to Baltimore, Maryland - within commuter distance to Washington, D.C. at just a fraction of the price.

 

All those markets - including the new turnkey markets with inventory TODAY in Orlando and Des Moines, plus the Baltimore BRRRR market, plus that 8-step flowchart that helps serve as a roadmap for you are all in one convenient place - all on one page - at GREturnkey.com

 

Market uncertainty is a short-term phenomena.

 

But when you lock up these lowest mortgage interest rates in American history - they can last you 30 years.

 

When the dust settles from any current news, you know what, you’ve still going to have your mortgage rate.

 

Stay safe. Enjoy these historically low mortgage interest rates … I sure am. Take action at GREturnkey.com

 

I’m Keith Weinhold and I’ll be back next week to help you build your wealth. Don’t quit your daydream!  

The Remote Real Estate Investor
The Remote Real Estate Investor
Roofstock
Halloween Special: Real Estate Horror Stories w/Chad Carson, Gary Beasley, Michael Zuber, Jim Barker & Tom Schneider
This week, we bring you something different with a collection scary real estate stories from some friends of the show. Join Chad Carson, Gary Beasley, Jim Barker, Tom Schneider & Michael Zuber for some creepy stories for the Halloween season. --- Transcript Emil: Hey everyone. Welcome back to The Remote real estate investor podcast. On today's episode, we have something really special for you guys. In the theme of Halloween, we wanted to go out and collect a bunch of horror stories very, very spooky real estate investing stories. And so we asked a couple friends of the podcast to share some stories they've had along the way. Some of them funny, some of them a little scary, some of them real spooky. So we have a total of five people speaking given their stories today, and that includes author and coach, Chad Carson, Roofstock CEO, Gary Beasley, Jim Barker, who is the VP of construction at Roofstock, our very own Tom Schneider, you guys know from this show, and author and good friend of the show, Michael Zuber. So without further ado, let's hop into their stories. Emil: So first up, we have author Chad Carson. So let's hear from Chad. Chad Carson: It was actually an investor friend who tried to get me to take over his property and manage it for him. And we went and looked at it. It's like, Yeah, I got this tenant who's not really paying that well. And that's okay. Yeah, we'll see how that goes. And it was a big is a brick house with a huge basement. And I said, Well, I'm gonna have to go visit the house. I'm not gonna take it over before looking at it. And so we walked to the house, we were walked inside, and we could just tell the tenant was really not at ease. Like he was just kind of nervous about something and kind of watching us too closely. And I noticed he got really uneasy when I started going towards the door to the basement. And I said, Oh, okay, I guess I better go the basement, open the top of the door, the basement. And all I heard was thousands sounded like of wheels going squeak, squeak, squeak, squeak, squeak, squeak, squeak, like lots and lots of little wheels and little sound like little feet, you know, little rodent feet running on these wheels. And so I kind of went to flick on the light and I looked at the bottom of the stairs, and there's like two red eyes, kind of looking up at me in the dark, and I flipped the lights on. And there are, there's there's one whole room in this basement with just tons of tons of rat cages or mice cages too. But that was only one part of this basement operation this guy had going on, there was all the reptiles and the other part of the basement that were the they're eating all of the rodents that he was raising, so he had big huge snakes. He had turtles and these big bats. He had I don't think I saw any alligators, but it's turtles and iguanas. And so it's like an exotic pet operation going on this guy's basement. This is one particular horror story. I was glad it wasn't my property and I told the guy as we walked out I said I'm not managing this property until you get rid of this tenant. The final part of the story I'll try to make fast is that he did get the tenant notice the tenant had to leave it was like 60-90 days later when he finally got it out and we went back to the house with the same friend and we're like we walk in the front door the same front door it looks it looks empty oh okay and not so bad and we're walking down the hallway the same hallway that had the basement door and all of a sudden this massive like big you know kind of dark brown mouse rat thing like comes charging down the hallway right so we both for the living room and take off is this mouse like was not scared of us at all like runs around the corner right when that happened I was right before he said Ah not so bad. There's this looks not so bad is this mouse comes charging down and after the mouse comes charging down we're getting ready to leave because I'm like let's just get out of this place. And I look over at my friend he's got this big huge roach crawling out of his shirt that must have dropped down from the ceiling somewhere. So long story short you know that if you get a bad tenant and that's the moral of this story was he didn't screen his tenet he didn't inspect it he didn't pay attention to what's going on and things can get out of control if you're not paying attention so that's that's the lesson there. Michael: Holy Smokes. I thought you're gonna say yeah, you decided to take it over and have him cut you in on the business and get 10% commission for all the animals and sales. Chad Carson: Oh man. I didn't touch that property I was I helped them advise them I you know from a distance so I didn't get any more roaches or or my shoes. Emil: Right Next up, we have Gary Beasley so roofstock co as many of you know, he has a really spooky story to share with you guys. So let's hear from Gary. Gary Beasley: When I was in the hotel business, this would have been back around 1997. I was in the midst of acquiring a very old hotel in Claremont Berkeley hills called the Claremont Resort and Spa. So this is right on the border of Berkeley in Oakland. It sits on top of the Hayward Fault. The really creepy thing we found out right before closing The general manager of the hotel came over the grab behind the diligence room took me in his office and said, Gary, I got to share something with you. Like, okay, what is this is the building have termites or something, he says, he hands me this file doesn't say anything. I opened it up. And it's a thick file full of handwritten notes. These were from guests, and from people who worked at hotel, and was all very, very similar. And it all happened on the fourth floor of the Claremont hotel. So the guy's name was Henry Feldman, I could remember it like it was yesterday. And he looked at me and he really wanted to watch my reaction as I opened through and started reading some of these notes. But there were dozens and dozens of accounts of people seeing a woman in a long white flowing dress, and either hearing or seeing one or two small children. And sometimes they would look out their window and see them in the Rose Garden. And like her tending to the roses, and sometimes she'd be kind of floating the hallways and like Oh, come on is this I'm looking around for a camera. He's like, no, read more there. This is no joke. And a lot of these are pretty recent. And then a number of things would happen in the rooms. One, sometimes the lights would go on and off unexplainably. tv would go on in the middle of the night, really blaring loud. Water would be on in the bathroom when they clearly had not been in the bathroom. drawers won't open in the dressers. And then one that was pretty freaky was a lot of people complained that they tried is when they tried to exit their hotel room, the door handle was hot, it was really hot, and it wouldn't, then they couldn't turn it. And so like this is really odd. And also, the other thing that was very common was people being awakened by someone thumping on their chest when they're sleeping, like bam. And no one's in the room. It's like what is going on. And in fact, I heard this from when I was getting my haircut one day there. But the guy who used to cut my hair was telling the story that it just happened at someone who's the hotel, this was a few years ago, and she like, moved to a different floor or whatever. So I'm trying to say I asked him what's the commonality of all this stuff? Because you know, I have no idea. But none of these people know anything about any of the other stories. Oh, there's one more and then I'll tell you the kind of the genesis of it. And what puts the theory. There's an NBA team that used to stay there when the warriors have people in the LA Times will stay there. There was an A famous NBA player. I think you can even find this online somewhere, who was there and he was complaining about the noise in th…
29 min
Millionaire Mindcast
Millionaire Mindcast
Matt Aitchison
How to Win Life with the Defense and Offense Strategy | Dean Graziosi
(REPLAY FROM EP463) In this episode of the Millionaire Mindcast, we have a stellar guest, Dean Graziosi who shares insights about the right mindset and habits you must have during this quarantine, how to meet new opportunities, how to get ahead from everyone at the end, and how to win life! Dean Graziosi is an entrepreneur, a leader, lifelong learner, knowledge broker, investor, real estate expert, multiple NY Times best-selling author, and world-renowned success coach. He created a breakthrough course, held extremely high impact masterminds, worked with Tony Robbins, wrote best-selling books such as Millionnaire Success Habits, and Motor Million$, and hosted a top-rated podcast called The Dean Graziosi Show. He used to travel to speak to hundreds of thousands of people and make an impact worldwide by sharing strategies and knowledge to people in order to build a happy, fulfilled, rich, and successful life. He has shared his message through The Wall Street Journal, Forbes, TIME, USA Today, The New York Times, CNBC, ABC, CNN, Fox Business, Today, Oprah, The View, Yahoo, and Business Insider. Dean has been an entrepreneur for 30 years, he has been to multiple down markets, and this uncertainty is not new to him. The only thing he is certain is this is not the end of the world. We’ve been to wars, past pandemics, and other challenges and we’ve survived. The key is just setting the right mindset during this quarantine. Ask yourself, who do you want to be at the end of this? Are you just going to hide in fear or are you going to find ways to get ahead from others? If you choose the latter, think about strategies to level up your life. Start on simple things that need your focus, and work on things you don’t have time before. Don’t focus on regret, on what you’ve lost, and on things, you don’t have but find ways to invest & grow, work on the relationships, start your business, and save money. Moreover, according to Dean, this is the time where you can thrive by planting seeds so you can harvest down the road. How you spend this time is how you are planting seeds by being energized, and innovative. Look at this time as a gift to evolve and improve yourself. This is the time we need more energy. Go with self-education or get a coach, practice more, & practice when no one is looking. This is not the time to wait for someone else to fix it. This is a time to step up, to be a leader, and to show people that you can thrive. Develop success habits and rituals. Turn on your defense and offense buttons, and be grateful whatever you have right now. Also, remember to level up your virtual connection in this social-distancing time. Some Questions I Ask: * How are you supporting the people that are really struggling & scared with the circumstances we find ourselves right now? (00:59) * What are some of the greatest habits in the book that if you were to pick one or two right now that applied now more than ever, which ones did you highlight? (05:39) * What are some of the rituals and habits that help you stay more in hands with your awareness that people might not be working into their routine right now? (10:41) * What are you sharpening right now and putting work ethic in on right now that’s not maybe as natural or easy or habitual for Dean? (16:59) * What is your overall sentiment or message to those people to learn the new pieces, tools, resources, and strategies to actually succeed and adapt in this new world that we find ourselves being pushed into? (24:53) * What is Mastermind? (29:58) * Where do you see trends and opportunities in times like now, what are you paying attention to? (34:11) * What do you say to that person who feels being an impostor and has self-doubts to share things right now? (36:14) * What is your overall outlook on the economy as a whole, and on real estate in this next cycle and how are you positioning yourself to continue building wealth? (40:12) * I’m curious about your thoughts in regards to Recession or Depression? (42:16) * If you will leave something of positivity to kind of spotlight a silver lining in all of these, what would you leave them today? (45:04) In This Episode, You Will Learn: * How to step up during this crisis (06:33) * Why you should be aware of your Internal Dialog (08:02) * Why you need to play defense and offense to win in life (11:01) * How to build certainty in these uncertain times (21:46) * Starting Over versus Transitioning (25:38) * Which is more valuable resources or resourcefulness (28:11) * Analogy about life experiences to do amazing things (37:23) Quotes: * “How you spend this time is how you are planting seeds.” * “The most innovation in the world comes out when your backs are against the wall.” * “A leader could be a leader of your family setting example for your kids, for your wife.” * “People focus on what they lost or what they don’t have can never go to another level.” * “I believed I was born a pessimist who’s fought my whole life to be an optimist.” * “Success is often so simple, we overcomplicate it.” * “It’s the little things that add up to the big things.” * “Work ethic is a recession-proof.” * “You win games when no one is watching.” * “No one is going to learn on the back of uncertainty.” * “People need certainty in uncertain times.” * “If you’re not climbing you’re sliding, not growing you’re dying.” Resources Mentioned: The Power of Now book by Eckhart Tolle The Untethered Soul book by Michael A. Singer Connect with Dean Graziosi on: Website Mastermind.com Instagram LinkedIn The Dean Graziosi Show Millionnaire Success Habits book by Dean Graziosi Motor Million$ book by Dean Graziosi Knowledge Broker Blueprint
48 min
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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