Get Rich Education
Get Rich Education
Mar 23, 2020
285: Your Pandemic Investing Strategy & Mindset
Play episode · 39 min

Unemployment is rising. Mortgage rates hit record lows two weeks ago. Stocks have fallen 32% from recent highs. Oil has fallen with a thud. 

Your life has changed in order to control the spread of the novel coronavirus.

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

Fannie Mae, Freddie Mac, and HUD have suspended foreclosures and evictions for at least 60 days. This could soon be extended to a year. 

The IRS tax filing deadline moved from April 15th to July 15th.

There are opportunities for you today that you’ve never considered before.

Recessions are normal. They occur every 7 years on average.

In three of the last five recessions, real estate values appreciated.

Consider drawing against your HELOC before it’s frozen.

Bill Gates’ epidemic prediction audio clip played.

Stocks: the bull market died of coronavirus.

I discuss my recent chats with national Mortgage Loan Officers.

Good news? Shelter-in-place means you might have the time with your family that you’ve always wanted.

__________________________

Resources mentioned:

Coronavirus forbearance is here:

Housing Wire article

RE appreciated in 3 of last 5 recessions:

Article & Graph

Mortgage Loans:

RidgeLendingGroup.com

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New Construction Turnkey Property:

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Complete episode transcript:

 

Welcome to Get Rich Education, I’m your host, Keith Weinhold. As the pandemic unfolds, how do you best position yourself as an investor to be profitable and mitigate loss? 

 

We’re talking about the real estate market, the stock market, and specific, actionable things that you can do for your family and your real estate. Today, on Get Rich Education.

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Welcome to Get Rich Education, I’m your host, Keith Weinhold and no matter where you’re listening to us - any of the 188 nations - your life has changed … due to the pandemic. 

 

Just when you learned to replace your handshake with an elbow bump, now you can't do either one.

 

Yes, your life looks different now. We are here in the social distancing era.

 

With major events all cancelled and the closure of businesses & schools, & entertainment venues; it is clear that the global efforts to slow the spread of the coronavirus is an unprecedented experience for you and I.

 

With people needing to stay home, it creates some new ways of socialization. 

 

For my haircut this week, I don’t think I’m going to go out to get it. I’m hoping that my wife can cut my hair at home.  

 

I can’t go to the gym. Thank goodness that I have a home gym - modest as it is. This is literally life-changing - altering the patterns and habits of you & I’s daily life.

 

You might see more of your spouse now. You might be homeschooling your kid now.

 

This is an emotional process for you and I - your relationships with people & things have changed.

 

You’re now more likely to be listening to me from home rather than out & about - not from work. 

 

But wait. Now, for you, maybe work ... is ... home. Kinda.

 

If you’re working from home, you’re now ...

 

... about to find out which meetings really could have instead been ... an email.

 

Yes, it's simply a strange time to be a human being.

 

The pandemic has stirred up more uncertainty than just social faux pas and awkwardness.

 

It's created a breathtaking 32% stock market drop - more on that later. The slowing economy means that oil prices have fallen with a resounding thud. Mortgage rates hit record lows two weeks ago.

 

The combination of those things might make you, the REAL ESTATE investor, giddy with your predicament.

 

You might even have - what feels like - an extended adult Spring Break at home with your family.

 

But the larger economic slowdown can ensnare everyone - yes, the real estate investor too. Some help is on the way.

 

Just last week, Fannie Mae and Freddie Mac announced that they are suspending foreclosures and evictions for at least 60 days - so we’re talking about a lot of conventional loans there. 

 

HUD is doing the same thing. HUD basically means FHA loans.

 

So I guess that property owners don’t have to pay their mortgages and tenants don’t have to pay their rent for a little while either.

 

That was followed by the state of New York declaring that certain borrowers in the state could forgo their mortgage payments for up to 90 days.

 

And there’s just so much NEWS about payment forgiveness and everything else related to the economy and the pandemic that it can be difficult to keep up. 

 

I’ll tell you, I’ve had to scramble - more than normal this week - to pull together the more relevant stories that affect you - because so much is changing so fast.

 

Treasury Secretary Steve Mnuchin said just last Friday - three days ago - that the deadline for Americans to file their taxes would be pushed back from April 15 to July 15. 

 

That’s got to be welcome news!

 

In fact, Mnuchin tweeted: "All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.” 

 

That’s what he said. That’s a 90-day extension. Some relief from the IRS for you.

 

Now, how long will this kind of alternate society that we’ve now reluctantly formed linger on? 

 

How long will it last? 

 

Self-isolation and playing the ol’ Risk board game or Battleship with your kids might be kinda cool at first - but it gets a little old after a while. 

 

It really gets old once you find that your kid is improving at chess faster than you and he’s starting to beat you. 

 

Well, no one really knows. No one in the world knows how long it’ll last. 

 

So therefore, it’s hard to know whether people are overreacting or underreacting to the news. It’s really hard to know. 

 

Will this last one month? Six months? Or even longer? 

 

The best, most trusted source, I know of thinks that this will probably be with us … through June. Yeah, that’s three more months.

 

Now, it might peak before that time, but who knows? And a lot of forecasts change … because, again … there are a lot of unknowns here. 

 

But there are a few things that I do know. So let’s think about what we do know.

 

There will always BE an economy - even if things got far worse. 

 

There will always be an economy as long as there’s a civilization. 

 

Sheesh, there’s an economy in Leavenworth - a maximum security prison. 

 

When this thing ends, if you’ve got a friend or a tenant or yourself that’s been laid off - you’re probably going to return to your job. 

 

But some people might never return to their job. You might see this - as an opportunity.

 

If you have - or have had - a job that you’re not in love with - this could give you time to find out what you’re good at & what you like doing rather than working for a paycheck.

 

Use this time to ultimately find out what you want. Then learn some new skills at the Khan Academy online - or somewhere else. See this as an opportunity.

 

There’s an old saying. If your neighbor loses his job, it’s a recession. If you lose your job, it’s a depression. 

 

And more people are probably thinking about that today ...

 

But recessions are indeed - a frequent occurrence in the modern economy. This 11 year economic expansion, was an all-time American record.

 

In response to the pandemic, The Fed is effectively printing tens of billions of dollars - and more - to help keep banks liquid.

 

This is a process … that devalues the dollar. This is inflationary - which is good for borrowers long-term, and this dollar printing makes investors scurry for real assets that can hold their value. 

 

Yes, real things that can’t be inflated away with profligate monetary policy. I’m talking about assets like water, and timber, and real estate - especially residential real estate.

 

Now, if for any reason, your income is disrupted, either because you’re out of work or your tenant is having trouble making rent payments ...

 

If you're losing income and must play defense, and you’re a homeowner, you might have something to work with.

Relief can come from your Home Equity Line Of Credit (HELOC). You can make withdrawals for emergencies. 

Sure - I’ve been talking for years here about how if you’ve got excess equity in your home, you can originate a HELOC.

Since home equity is unsafe, and illiquid, and it’s rate of return is always zero, you can use that excess equity in your home. MAKE it liquid.

The HELOC can come in the form of a second mortgage. At last check, on a primary residence, you could get an 80% combined loan-to-value ratio HELOC.

How that works is if you have a $500K home, you could have $400K of debt against it. That’s the 80%.

So then if currently, your home has a $300K loan balance, you can potentially get a HELOC second mortgage for another $100K. 

OK … your $300K first mortgage plus $100K HELOC has a sum of $400K - which is 80% of your home’s value.

So now, you’ve got $100K out of your home. 

The way that this $100K HELOC works is that your interest rate generally follows the Federal Funds Rate - which the Fed has essentially dropped to 0%. 

Now, you’ll pay a margin on top of the Fed Funds Rate - but HELOC rates are really low now. 

Their interest is often tax deductible - and you can spend the HELOC funds on anything at all. 

You also have the flexibility of making interest-only payments on the HELOC - or paying back extra toward the principal if you prefer. Nice option there. 

And I’ve gone deep on how HELOCs work on prior shows, so I won’t do that here. 

But here’s the message if you think that you need some - or want some - liquidity. 

Originate your HELOC and consider drawing against it - which means pulling the money out - before the bank FREEZES withdrawals from your HELOC funds. 

Look, here’s what happened during the 2007-2009 Great Recession. Homes were losing value then, and banks flash-froze HELOCs. It happened to me. 

I still remember getting the letter - it was from a major bank that you’ve heard of. 

I do remember getting that letter from the bank because I was frustrated that they froze my funds - which was equity in my home that I had previously had access to.

So, I’ve told you on past shows, that I can’t think of any reason not to have a HELOC second mortgage on your home, as long as you have adequate equity in it. That way you can choose to either use it by drawing against it - or not. 

My point today is - consider making a withdrawal on that HELOC before its frozen.

Now, say you do that and you’re paying a 5% interest rate on that money. 

Maybe wherever you put those borrowed funds, now you’re making more than 5% on them because you’re taking those funds and putting them on offense. 

If so, that’s great. That positive arbitrage. Gotta love that.   

But what if you take those HELOC funds that you’re paying 5% interest for and you’re playing DEFENSE, and you have them invested in a vehicle that’s MAKING less than 5% interest for you.

You know what I would say? What you’re doing is like … you’re paying an insurance premium.

You’ve got access to the funds, you’re keeping them liquid, you could be hemorrhaging a bit each month, but it’s like paying an insurance premium in order to have access to your funds.

I don’t like to tell people what to do. I like to tell people what I do, and I provide ideas and information here.

Now, if you don’t need funds or want funds, well, then there’s less reason to tap your HELOC.

Remember too, a high mortgage balance is a great asset protection tool against a bank foreclosure.

In an adverse circumstance, the bank doesn’t want to come after you if you still owe $400K on the loan.

But they’ll come after the family that only owes $40K on their loan - because the bank could get the property as collateral, and only lose out on the $40K that they would have had coming to them.

See, the bank doesn’t want to foreclose on your property where you, the homeowner, would have still owed them 4-HUNDRED K.

My point is - if you need to play defense, have a HELOC and consider using it before it gets frozen - IF it gets frozen. 

 

It might not get frozen. See, a big reason that HELOC draws were frozen during the Great Recession 12 years ago is that housing was at the CENTER of the 2007-2009 Great Recession. 

 

From the time that those HELOCs were originated, properties had lost value. As they lost value, that means loan-to-value ratios went up, often in excess of 100%. 

 

So banks froze HELOCs so that they didn’t get exposed to that risk. If you’ve got zero equity in the home or skin in the game, you’re more likely to walk away - as a homeowner.

 

But see, if we have a pandemic-induced recession, it’s NOT housing-centered like the Great Recession was - with their irresponsible lending practices and overbuilding that occurred then.

 

Today, we’ve got RESPONSIBLE lending practices and an UNDERsupply of homes. We’re UNDERbuilt.

 

So, the Great Recession was different - and special.

 

Now, I don’t know whether we’re set up for a pandemic-induced recession or not. But I’d say that there’s a good chance that we’ll have one. I’d say, a more than 80% chance that we’re in one now.

 

We don’t actually know that we’re in one until in the future, we look back and see two consecutive quarters of year-over-year GDP contraction. That’s the definition.

 

But we’re definitely due for a slowdown. We’re in one now.

 

It’s worth remembering that recessions are actually a normal part of the economy. We have one every 7 years or so.

 

Our previous five recessions began in 1980, another one in 1981, then 1990, 2001, and finally the aforementioned Great Recession beginning in 2007. 

 

In three of those five recessions - three of the last five, do you know what happened to home prices.

 

Home prices went up. They INcreased in 3 of the last 5 recessions. 

 

Home prices increased in value anywhere from 1.9 percent to 4.8 percent. I’ll link that in the Show Notes for you.

 

So, a recession definitely doesn’t mean a drop in property value. Residential real estate is a recession-resilient asset class.

 

The thing that you need to keep your eye on is, is your tenant keeping their job during this crisis so that they can pay the rent. 

 

By the way, do you know the difference between an epidemic and a pandemic?

 

As Oxford defines it:

An epidemic is a widespread occurrence of an infectious disease in a community at a particular time.

 

A pandemic is a disease prevalent over an entire nation or the world.

 

They mean about the same thing, but the pandemic is on a larger scale.

 

Now, MicroSoft co-founder Bill Gates has received attention recently in predicting that a pandemic was potentially humankind’s greatest understated threat.

 

In fact, let’s listen to this short clip - this is Bill Gates, more than three years ago in Davos, Switzerland:

 

Bill Gates clip: “An epidemic - either naturally-caused or intentionally-caused - is the most likely thing to cause, say, 10 million excess deaths. It’s pretty surprising how little preparedness there is for it.” 

 

Yeah, Bill Gates said a lot more than that about it. But he’s appearing to be rather correct here.

 

Well, what has administration in the United States done for a response? Our political leaders?

 

Well, initially, Trump and company seemed to throw more money & fewer regulations at the problem. 

 

That’s changing somewhat, as we’ve got more social controls and border closings now.

 

With the list of these administrative & … policy news stories longer than a Walgreen's receipt, the least you should know is that President Trump and Congress are aiding homeowners and renters alike.

 

Free testing, and an expansion of unemployment insurance. 

A stimulus package of one trillion - with a “T” - one trillion dollars or more that looks to involve direct payments to American households … is really going to help provide relief to people. 

There is lots of precedent for government bailouts in times of crisis. 

 

The U.S. government provided $15 billion to airlines after 9/11, $700 billion to banks to army-crawl through the 2008 financial crisis, and $17 billion to automakers just after that.

 

Whether you see bailouts as the right way to do things or not, there is that precedent.

 

Fortunately - some of that help should include your tenant. We might see multiple injections of $1,000 each or more - directly into consumers’ hands.

That’s the plan that’s formulating - just write virtually everyone a check. And $1,000 means more to your tenant than it does to you.

This can really help Trump and Congress “fill the gaps” between cushions like paid leave and unemployment insurance.

 

Though that’s gonna cause more long-term taxpayer DEBT - yes, I think a lot of people need the relief in the meantime.

 

Think about it this way: 

 

To save their economies over the long run, countries around the world are actively putting themselves into recessions.

 

Productive nations are actively plunging themselves into recession left and right.

 

Can you imagine that? But even though I’m a finance guy and a real estate investor, I think that it’s the right thing to do.

 

As odd as it sounds, the best way to heal the likely recession, is not to try to fix the recession. It’s to get into a recession by killing activity in order to control the virus.

 

The best way to heal the economy is to get people to stay home, stop the spread, and end this sooner.

 

Look, if you’re riding a bicycle and get a flat tire because there are nails on the road, well then, you don’t get to your destination … by patching the hole in the tire over & over again.

 

You get to where you’re going by cleaning up the nails on the road - which means that you & your bicycle go nowhere for a while - and then when the nails are picked up, you quickly roll along to wherever you’re going just like the economy should quickly roll along nicely - like it was - before the pandemic hit.

 

The fastest way to fix the economy is to stop the virus. 

 

As we’ve now learned, even though you might feel like you’re in a digital age with TikTok videos, and an app that digitizes your dinner receipts, and everything else ...

Humans still generate trillions in economic activity by coming into close, physical contact with one another—sitting at restaurants, assembling auto parts, traveling on planes, getting haircuts. 

But public health officials stress that to slow the spread of the coronavirus, we must all maintain a safe distance from each other, even if we’re healthy. 

But that still doesn’t square with our economy’s structure. 

Be mindful that recessions and surprises happen constantly. But this one feels a little more surprising for a few reasons - a virus is sort of intangible - you can’t see it - and there’s the fact that we just had a great loooooong run of 11 years.

 

That was the longest economic expansion in American history.

 

I think that this pandemic is the biggest news story since 9/11 - where you’re just kind of like, “I can’t believe this is happening.” But this WILL pass. It always does.

 

Look at what we’ve had in the last - not even 20 years:  9/11, Hurricane Katrina. The great recession. Superstorm Sandy. And now, you might call this the great shutdown. 

 

With the economic slowdown, I’d expect sudden, deep, and brief. 

 

I hope and expect that it will be sudden - it already has been sudden, that it will be deep - with massive layoffs, - and that it will be brief.

 

There are two prior Get Rich Education episodes that are getting a lot of attention right now.

 

One of them is named “A Recession Is Coming”. I released that in November of 2018.

 

One year later, I released an episode named “Planning For A Recession”. That was released in November of 2019, just four months ago.

 

“A Recession Is Coming” is Episode 215, and

“Planning For A Recession” is Episode 265 if that makes it easier for you to find them.

 

I’m coming back with more here - with “Your Pandemic Investing Strategy & Mindset”. This is “Get Rich Education”.

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Hey, you’re back inside Get Rich Education. And welcome, you’re squarely in the #WFH Era. 

 

The “Work From Home” Era. 

 

Yes, this alternate world where working from home is NOT frowned up - and going into the office IS frowned upon. I’m your host, Keith Weinhold. 

 

I’d like to emphasize that no one really knows about the next turn that society and the economy will take during this pandemic. That’s because we are in uncharted territory.

 

Because I don’t think very many people were alive to remember the Spanish Flu of 1918.

 

As far as the most recent territory that HAS been charted ...

 

Last Friday, stocks, as measured by the S & P 500, fell more than 4%. So as of today, Monday, March 23rd, 2020, stocks have now fallen more than 32% from their recent high.

 

How many people with 401(k)s have lost 32% of their account’s value? Some of them, even more, oh … and that’s just in the last month or two.

 

And last week, stocks posted their worst week since the height of the financial crisis.

 

The bull market died of coronavirus. 

 

That’s what happened. 

 

Now, why am I talking about stocks more than usual both this week & last - since I’ve talked about the pandemic quite a bit on both of these shows?

 

It’s because stocks are often a LEADING indicator of what investors expect is coming. 

 

(And note that I’m being kind by calling stock buyers true “investors”. A lot of them are just speculators.)

 

Now, a stock bear market is when stocks fall 20% or more from a recent high. 

 

Do you have any idea how good of a predictor a bear market is of a recession? Well, I can tell you.

 

73% of stock bear markets have been accompanied by a recession. 

 

As a forward-looking mechanism, the stock market usually sends warnings about the economy before shrinking growth shows up in the data.

 

So yes, in the 11 stock bear markets we’ve had since WWII, 8 of the 11 have resulted in a recession. That’s that 73%.

 

While it remains to be seen, real estate may be insulated to some extent - and that is because of tight residential inventory, high buyer demand, low mortgage rates, and lower prices for lumber and oil.

 

Recessions are not officially declared until the economy is already deep into them, or until after they’ve passed. We could look back later and say the recession started this month.

 

That’s because so much of our economy has to do with consumer spending - you buying a frappucino, you filling up your car with gas, you buying a boat. 

 

Consumer spending accounts for about 70% of GDP.

 

Now, here on the show, we’ve spent the last few years focused on rental SFHs and properties up to four-plexes in size.

 

Though it’s still a developing story, there’s been some evidence that the ventilation system in larger apartment buildings - can transmit the virus. I … sure hope that’s not true.

 

I talked to two prominent national MLOs last week.

 

  • One of them is Caeli Ridge, where they are just doing a TON of mortgage origination business for both income property purchases and refinances. 

 

  • The other mortgage loan officer is prioritizing new property purchases ahead of refinances there in THEIR office.

 

Low rates will outlast coronavirus. 

 

Markets are anticipatory - so once the virus is past it’s peak, prices of real estate should be rather buoyant.

 

Be mindful too, that because we focus on investing in the United States Midwest & South - what i call the stable markets - instead of the volatile, coastal markets.

 

Just generally here, coastal properties and stocks here near the start of the decade - are very much alike. 

 

They’re both overpriced, they’re both low yielding, and they're both susceptible to fall in value.

 

In these times, RE could be like the cleanest dirty shirt in the investment world - where you get the best risk-adjusted return. 

 

Better than bond yields, and better than 2% dividends from the S & P 500.

 

With factories closed, supply chain kinks can LIMIT housing supply - and housing was already in short supply.

 

I think that some people either won’t have the confidence or capacity to buy a home. 

 

Well, good. Then what they’ll do, is rent. You want them renting from you. More people in the renter pool … is to your advantage.

 

But they’ve got to have an income.

 

It’s important to remember that a pandemic is different from a financial crisis—bargain-basement interest rates can help keep businesses afloat, but the “social distancing” measures recommended by health officials mean canceling events and avoiding crowded places, which will curb spending. 

 

Interest rates can’t fix that, though low interest rates are great for borrowers.

 

Think about how this has affected society - maybe in some other ways you haven’t thought about. 

 

I know friends that spent months training for marathons that were cancelled. 

 

MLB, the NHL, NBA seasons suspended. 

 

Think about college & HS seniors that might have played their last game - without even knowing it. The pandemic ended their career - did you ever think about that?

 

Of course, this is minor. Some people have lost their lives, others have lung damage.

 

How’s your grandma doing - hopefully you get some time to video chat with her.

 

Maybe, just maybe, there is a huge silver lining to all of this with people staying home. 

 

Maybe more time as a family is what we need. Maybe we’ve gotten so caught up in following the madness of busy-ness, and that this is a reset - and you can have some health benefits - and exercise more. 

 

Maybe, after the short term economic losses have faded, some might place a much higher value on what is most important in their lives. Maybe.

 

We should salute and express our gratitude to the millions of frontline workers who are making tremendous efforts to help us all. 

 

That includes our world class medical staff and others that you’re not thinking about too many others too - the calm grocery store & pharmacy workers and the tireless drivers bringing important supplies to hospitals & warehouses & stores & our own doorsteps.

 

Think about the spouses of some of those people too. My wife is a medical worker and I’m a little fearful that she’ll bring the virus home.

 

Realize that fear of the Coronavirus may keep people away from restaurants and small businesses who usually operate on small margins. 

 

So here’s something you can do!!

 

From your favorite local business or restaurant, you can buy a gift card. 

 

Buy it directly from that favorite place so they get the use of your money for the next few weeks or months. 

 

Then ....when things have settled down, treat your sweetie to an evening out or buy something for someone and use your gift card‼ That’s something simple and actionable you can do to help the economy and your community.

 

Thank you delivery workers.

Thank you doctors, nurses & medical staff.

Thank you grocery workers.

Thank you truck drivers.

 

If you like to see the headshots of the guests we have here on the show and see the show notes, it’s easy. 

 

For this episode, #285, simply go to GetRichEducation.com/285

 

Now, we might only have the complete lyrics for the episode transcribed for maybe ten percent of episodes. 

 

But for both today’s show and last week’s show, you can see the entire transcription there.

 

That way, you can read along as you listen, or share that transcription with someone else who, perhaps, wants this content but isn’t able to hear. So you can check out:

 

GetRichEducation.com/284 for last week’s show notes with complete transcription or 

GetRichEducation.com/285 - for this week’s.

 

I’ll be back with you next week. If you want to help the economy, then, you might be best off, just staying home! 

 

It’s part of doing the right thing before you do things right. 

 

I’m Keith Weinhold. 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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