309: Is Homeownership A Scam? (Rent vs. Own)
Play episode · 42 min

Should you rent or own your home? 

Host Keith Weinhold reveals the biggest homeowner myths.

Complete episode transcript below. Read along.

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Resources mentioned:

Business Insider: Rent vs. Own:

https://www.businessinsider.com/buying-a-home-instead-of-renting-isnt-always-better-for-your-savings-2017-11

Housing Wire: Homeowners Wish They Were Renting:

https://www.housingwire.com/articles/49743-quarter-of-us-homeowners-wish-they-were-renting-instead/

Mortgage Loans:

RidgeLendingGroup.com

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Welcome to Get Rich Education. I’m your host, Keith Weinhold. Is homeownership a sham? Is it a rip-off? 

 

When it comes to the home that you live in yourself, is it better for you to pay rent to a landlord, or own that home yourself? 

 

For your primary residence, what should you do in your specific life situation? You’ll learn today … on Get Rich Education.

 

——————-

 

Welcome to GRE! From Syracuse, Sicily, Italy to Syracuse, New York and across 188 nations worldwide. I’m Keith Weinhold, this is Get Rich Education.

 

Usually on this show, you learn about how buy-and-hold rental property, when bought strategically - produces wealth. We’ll return to that next week, but today ...

 

… it’s about your primary residence. And, when we talk about, should you own your home or is it better for you to pay rent to a landlord - think about how important this is. 

 

Because whether I’ve had the chance to meet you yet or not, there’s one thing that I definitely know about you, and that is, you are always going to live … somewhere.

 

Your housing expense is one of the biggest financial expenses in your life.   

 

Despite that it’s such a substantial financial decision for you, some people revert to orthodoxy - this FLAWED orthodoxy where they think that owning is always better. That’s not true.

 

I really want you to watch your mind as I tell you this today, because there are very likely a few tripwires installed there … and I am about to hit some of them. So do your best to remain calm … if you must.

 

Though more people are waking up to the fact that renting is sometimes better, I still think that popular culture has long reinforced this misplaced notion that owning is always better.   

 

“Are you a homeowner, Greg? No. I rent. Oh.” 

 

Haha! That’s from the classic comedy movie “Meet The Parents”. Owen Wilson & Ben Stiller - while Robert De Niro - the future father-in-law was party to that chat where he’s thinking that the homeowner is the more apropos suitor for his daughter than the renter is. 

 

Look, if you can OWN a home and your monthly housing payment is $2,500, but you could instead PAY RENT on an equivalent home for $1,500 - now your cash flow has increased by $1,000. That’s money in your pocket today that could be re-invested at a rate of return.

 

Now with your $2,500 housing payment in this example - that’s more than just a mortgage payment remember. 

 

When you own, your HOUSING payment consists of mortgage principal & interest, property tax, property insurance, maintenance, repairs, utilities and more. You’ve got to add all that up to get to $2,500. 

 

What about that TIME it took you on HOW to repair the leaky faucet when you owned the home? Factor that in.

 

Now, the homeowner might reply, but at least part of my $2,500 payment is building equity for me. Yes, it is. A minority of that payment is building equity. You’d rather have equity - you’d rather have principal paydown than lose it to interest. 

 

And you’d rather have equity than nothing.

 

But, as I’ve discussed extensively elsewhere - so I won’t do that again here - home equity is unsafe, illiquid, and it’s rate of return is always zero.

 

You can probably repeat that to me at this point - ha! 

 

Also, what’s more important in your life? Cash flow or equity? Cash flow is what creates financial freedom. As an investor in the pursuit of freedom, in fact, you want to CONVERT your equity to cash flow. 

 

Remember, in this $1,500 rent payment vs. $2,500 housing payment scenario on your primary residence … it’s the renter that has the additional $1,000 cash flow and the homeowner that builds the equity.

 

Let me remind you. If you would like to READ along as you listen to the show today or you know someone that’s hearing impaired, you can read the complete transcript to this episode at GetRichEducation.com/309. 

 

That’s GetRichEducation.com/309 to see all the Show Notes and the entire written transcript for this episode. 

 

Well, some people think that buying & owning their primary residence is: "LIke paying rent. Except you get to keep it." Well,that has caused millions of people to buy houses that they later regret. 

 

I know a young, married couple - Jerome and Jessica - they’ve got two kids. They wanted to move from snowy Anchorage, Alaska to Las Vegas, Nevada. They had lived their entire lives in Anchorage and were tired of the snow and wanted some heat. 

 

You think that they might discover an overcorrection problem, btw? Vegas is in the middle of the Mojave Desert. But anyway ...

 

They had owned their Anchorage home for five years before they put it up for sale. That was the first home that they ever owned - starter home.

 

Had they been renting that home - they could have moved where they wanted to in as little as a month. 

 

But as homeowners, by the time they made all the make-ready repairs to the home, got it listed for sale, had to repeatedly prepare their home for showings - meaning they had to intermittently get their home in pristine condition to make it look good for showings - uprooting their lives every time … they finally sold it in 4-½ months by the time their buying got their financing in order & inspections & appraisal & the deal actually closed.

 

If Jerome and Jessica had been renters instead, they could have been on their way in a month.

 

Plus, over the five years, their home appreciated a little, but not enough to offset the 4% closing costs when they had bought five years earlier, all the maintenance & repairs that they had put into place DURING the five years they lived there, plus then they then had to pay a real estate agent a 5% commission when they sold.

 

They not only lost money by owning, they lost time, they lost mobility. They didn’t have liquidity.

 

For Jerome and Jessica, they got a lesson. “Paying rent is not the same as throwing money away.”

 

Well, I can tell you, Jerome and Jessica moved to Vegas one year ago now. They have been renting from Day One there, they’re still renting, and they have no plans to buy in Vegas anytime soon.

 

“Paying rent is not throwing money away” because you get the BENEFIT as using that space as a home, a place to sleep, prepare food, eat, shower, study, entertain - how in the world is that throwing money away? It isn’t. 

 

You know that I’ve told you on this show before that paying rent is not throwing money away just like the five hour flight that you took from Boston to Phoenix last year wasn’t throwing money away.

 

No one called it throwing money away when you paid $500 to “rent” that airline seat for five hours. Why, because you had the BENEFIT of travelling somewhere.

 

Sheesh, how far are people going to take it with this nonsense that “Paying rent is like throwing money away?”

 

Your gym membership is $50 a month. But you didn’t get to take a set of the 40-pound hex dumbbells home after six months of membership did you?

 

Gosh, how far would you take this nonsense line of reasoning?

 

You like to go mini-golfing? I’ll bet that you paid some portion of your fee to rent the put-put club and a little orange golf ball for two hours.

 

How are you going to think - that you now expect to own equity in a put-put golf club that’s all nicked-up and was used by 80 different people? Sheesh, that’s ridiculous. 

 

You had the benefit of a gym membership because you’re healthier. You had the benefit of mini-golfing because you like some recreation. You didn’t throw money away.

 

What about renting an RV for a week? You didn’t throw money away. You had the benefit of using it.

 

This whole misguided notion that paying rent for a place to live is throwing money away is a … replete farce. 

 

But that also doesn’t mean that renting your primary residence is always better than owning either. 

 

Well, let me give you some numbers here. This will help you debunk that notion that - ad infin-I-tum, homeownership is better.

 

Look, in a place like Manhattan’s Tribeca neighborhood, a small apartment has, just for simplicity, say a rent-to-value ratio of three-tenths of one-percent.

 

That’s a lousy deal if you’re the landlord and an awesome deal if you’re the renter. 

 

So, what that means is that market rent is only $300 per $100K worth of property. That’s that three-tenths of 1%.

 

That ratio might then be $3,000 of rent on a $1M apartment in Tribeca, Manhattan.

 

But look, in a place like Memphis, Tennessee or Little Rock Arkansas, the rent-to-value ratio might be a full 1%. 

 

Now see, if you’re a renter here, you’d have to pay $1,000 for every $100K worth of property. (Not $300 like Manhattan)  

 

Well, in that case, it makes more sense for you to own your home. 

 

BTW, it also then, makes sense for you to own Memphis real estate & rent it to others - because for every $100K of Memphis property you own, you’d RECEIVE $1,000 in rent. You’d RECEIVE a full 1%.

 

Generally, on the coasts, it’s better to pay rent for your primary residence - and in the heartland, it’s better to own that real estate - whether you’re renting it to others OR living there yourself.

 

But there are so many more considerations here than just numbers and geography. So, what else makes sense to your specific situation?

 

And before I go on, please don’t think that I’m “against” the real estate AGENT industry. That’s not true. Gosh, I’ll stand up for a GOOD real estate agent when it makes sense.

 

For example, when it comes to selling your home, you might not want to pay a 5 or 6% sales commission to an agent. Some people would rather sell it themselves and pay 1 or 2%.

 

But what some sellers fail to consider is that an agent might help you get 4% more for it because they know how to reach more buyers, and do it fast, and save you a lot of hassle and uncertainty.

 

So, there’s just one example of how I’ll stick up for agents when it makes sense.  

 

But, getting back to should you own or rent your primary residence, I’m here to help you decide what’s best for you. You’ve ultimately got to decide. 

 

I WILL tell you when it’s better to be a homeowner than rent shortly. But first ...

A recent survey from Freedom Debt Relief shows that homeowners have many regrets when it comes to the purchase of a new home, mostly because they are largely unprepared for the initial cost and the ongoing financial responsibility that comes with homeownership. 

Of the 1,028 people surveyed, 29% said homeownership makes them feel anxious and stressed, while 26% said the cost of owning a home is a burden and they wished they were renting instead.

When it comes to affording house payments, it was Millennials and Gen Z homeowners who said they are struggling the most. Half of these homeowners said property taxes turned out to be higher than they expected, while 52% said their monthly mortgage payments are too high. 

With renting comes an always-available maintenance team and the ability to call the landlord when there is a problem.

Conversely, homeowners have to mow their own lawn, paint their own walls and fix their own leaky faucets. 

And some of these tasks have homeowners shelling out more cash than they planned, with 59% saying maintenance and repairs are more costly and require more effort than expected, and 60% saying they cannot afford needed upgrades. 

That said, it seems the idea of owning a home is still attached to the concept of what it means to succeed in this country, with 59% of homeowners saying they believe that owning a home is still part of the American dream. 

I’d like to add that the survey was conducted “pre-pandemic”.

 

Most people think that owning a home is a financial asset.

 

That's debatable.

 

The Rich Dad school of thought is known for saying that, "A home is a liability, not an asset". 

 

An asset puts money into your pocket every month. A home is a liability because it takes money out of your pocket every month.

 

Of course, in the conventional sense, a home is in your asset column and it’s mortgage is in your liability column.

 

Though owning a home is often a poor financial investment, you still tie up a lot of money in your humble abode. 

 

You really have more than two choices in how you live - it’s actually more than just rent or own. 

 

You have four choices in how you live: you can own your home, pay rent to a landlord, be homeless, or live with your parents – ha!

 

We’re only discussing two here: Rent vs. Own.

 

Fannie Mae associates “Home ownership with the American Dream.” in their marketing slogan. 

 

In America, how many people own their homes vs. rent their homes anyway? About 2/3rds own and ⅓ rent. The homeownership rate is currently about 68%. 

 

Well, I’ve probably got your wheels turning now on “rent vs. own”. 

 

Let’s break things down further. I’ve got 16 factors that I came up with here for you to consider, many of which you’ve never thought about before - on this.

 

Often it’s an exercise in pros vs. cons for you. Often, it’s rationalizing a series of trade-offs for you. 

 

The first of these 16 factors is ...

  • Mobility. Many people move more often than they expect. Renting keeps you nimble. With a new job opportunity or life change like marriage and kids, your mobility is an asset. A homeowner that moves a lot gets eaten up and beaten up with closing costs, make-ready expenses, and sales commissions. Kinda like where I told you about Jerome, Jessica, and their two kids.

 

  • Choice. There are more homes for sale than there are rentals, especially at the higher end. See if you want to rent a high-end place, they’re often really hard-to-find, especially in a more rural area. Renting of high-end homes limits your choice. You might feel like you HAVE to buy to get what you want.

 

  • Equity Buildup. Equity is the difference between what your home is worth and how much you owe on a mortgage. Homeowners build equity; renters don’t. Equity is like a forced savings plan. But equity is an awful investment with zero return. Your return is zero because the presence or absence of home equity has nothing to do with whether or not your home appreciates. (Yet you would rather have equity than nothing.) Houses make terrible “banks” - they’re bad places to store cash.

 

  • Liquidity. Though most homeowners build equity, it’s difficult to access. To tap your home equity, you must prove to a bank that you qualify again, wait months, incur costs, and you still might be denied access to the equity.
  • Opportunity Cost. Many tie up a 20% down payment or more in home equity. As I’ve stated, those equity dollars are low-use, zero return dollars. Instead, your chunk of money can be earning a return for you elsewhere.

 

  • Sunk Cost. This is an overlooked killer for homeowners. I mentioned some of them already. Mortgage loan closing costs, constant home maintenance and repairs, property taxes, utilities, landscaping, snow removal, leaf raking, rototilling, replacing obsolete fixtures and appliances, roofing, and painting costs are never fully recouped when you go to sell it. Renters bear almost none of these sunk costs. Renters aren’t losing time at Lowe’s & Home Depot either.

 

  • Control. Homeowners have a big advantage here. The peace of mind of knowing that a landlord can’t tell you to move is priceless. You have a feeling of belonging, an anchor. As a homeowner, you can knock out a wall, renovate your kitchen, or add a fence. Make it yours. Control is a big homeowner “plus”. 

 

  • Appreciation. Renters don’t experience price appreciation. They commonly even have to endure rent price increases. Homeowners with loans benefit from financial leverage, which can amplify your wealth in an appreciating environment (though you’re lucky if this offsets ongoing opportunity cost and sunk cost). Inflation becomes your friend for homeowners - and when you’ve only got a tiny down payment into a home that you own - leverage AND inflation are both your friend.

Now, a homeowner may also get an unusually outsized equity benefit if they buy in the right place at the right time. For example, if they had bought 10 or more years ago in a place that’s appreciated a lot - for example in Charlotte, Nashville, Austin, or Boise. That could be a homeowner boon there.

But if you buy a home and it’s value doesn’t appreciate - or even goes down - plus each month you paid more than you would have as a renter - plus you’ve lost time doing repairs & maintenance, then you’re REALLY lost out as a homeowner.

  • Tax Advantages. Homeowners often get the mortgage interest deduction. But this is just one small consideration. As our most recurrent guest in GRE history, Rich Dad Advisor Tom Wheelwright says, “Don’t let the tax tail wag the dog.” To say that “I’m buying instead of renting for tax reasons.” That’s a really weak argument.

 

  • Low mortgage rates. Homeowners can tie up long-term fixed interest rate debt at these historically low rates. Economists believe they’ll stay low for a long time into the future. This is a homeowner advantage.

 

  • Price and Rent-To-Value Ratio. If a home costs less than $250,000, own it. If it costs more, pay rent. If the monthly rent is under $700 per $100,000 of home, rent it. If rent costs more, own it. That’s that approximate seven-tenths of one percent rent-to-value ratio - or rent-to-price ratio. This formulaic approach indicates how much “home” you have the benefit of living in per dollar paid. Regional and other factors can skew these numbers. Of course, when we get that general with the numbers, there are going to be more exceptions.

 

  • Community formation. Owning your home provides both you and your neighbors a feeling of “belonging.” Homeowners are more likely to look out for the common good of the neighborhood. That helps everyone. People feel more fulfilled when they’re part of something greater than themselves.

 

  • Travel. This is so simple yet everyone overlooks this. Have you been to New York City? New Hampshire? Iowa? Arizona? Florida? Alaska? Ecuador? If you haven’t even gotten out to see the very world that you live in, be a renter until you’ve found the place that fits your interests. 

Some people find themselves owning a home for a few years, then later realize that they don’t even live in a region that fits their interests.

Maybe you don’t want to move far away because you want to be close to family. That’s legit. Family can be a good reason for NOT making a distant move. It’s about what’s important … to you.

 

  • Personal cash flow. If it costs substantially more to own a place rather than rent that place, then rent it…and vice versa. Homeowners that divert too much of their income into housing payments are what’s known as “House Poor.” This stifles your opportunity to travel, invest, and provide opportunity for your family.

 

  • Natural disasters. Areas subject to frequent earthquakes, hurricanes, and floods clearly tilt to the renter’s advantage. Even if you’re adequately insured as a homeowner, these catastrophes are worse for homeowners. No one thinks about that stuff until it happens.

 

  • Consumer advantages. Owning rather than renting can give you higher credit card limits and more favorable insurance rates.

Those are the 16 factors that I compiled to help you figure out what makes sense for you.

 

A decided stigma still exists with renting. But you don’t live your life for the Joneses, you live it for you.

 

I’ve got more for you on: “Should you rent your home or own your home.?

 

Hey, have you had something on your mind that’s made you want to write into the show, but you just haven’t done it yet?

 

Well, I think that it’s been a while since I mentioned our Contact Page here on the air. 

 

You can get ahold of us at GetRichEducation.com/Contact.

 

What you can do there is either send us a WRITTEN message - or you have the option of leaving some audio - basically leaving a voicemail. 

 

I really like it when you leave us a voicemail personally, because it’s something that I might be able to play & answer on the air for you.

 

I like to hear your voice.

 

We get a ton of messages - and we’re grateful for them. But understand that we sure can’t give personal replies to every one of them.

 

You can either write in OR leave a voicemail, again, at GetRichEducation.com/Contact.

 

More on rent vs. own, next. I want to try to help you make the best decision that you possibly can. I’m Keith Weinhold. This is Get Rich Education.

____________________

 

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

 

Homeowners have a higher net worth than renters. 

 

The average homeowner net worth is $195,000.

The average renter net worth is only $5,000. 

 

That is a substantial gap. The means that homeowner net worth is nearly 40 times what renter net worth is.

 

Does that alone mean that owning is better? No. I think that it does TILT toward owning.

 

But see, to even BE a homeowner and qualify for a mortgage, you would have already needed to have assets and income … in order to cross that threshold.

 

I don’t think these figures are a good reflection of WHERE the homeowners wealth actually came from - was it equity building through leveraged appreciation & principal paydown or how much income they earn from their job?

 

That’s information that I’d like to see. 

 

Of course, in the greater context of Get Rich Education - net worth matters. Not as much as cash flow, but it matters, because net worth can be converted into cash flow.

 

Nonetheless, that net worth stat still tilts to the homeowner favor, just not as much as one thinks.

"People often say that buying a home was the best investment they ever made," that’s what Ne ela Hummel said - the chief planning officer at financial planning firm Abacus Wealth Partners. 

"The problem is that their return as investors is often worse than they think. 

When calculating how much they made on a home, most people do not include the out-of-pocket costs they incurred through things like replacing pipes, repairing roofs, or numerous other unexpected expenses that come up. As a tenant, your costs are fixed, but as a homeowner, you are on the hook for any repair that comes up."

That’s the end of what they said.

Those needed repairs to your home may involve you doing a lot of research online - and watching YouTube videos - to find a solution or simply paying a repairman to remedy the issue. 

Either way, you’re on the hook for investing more time and money into your home when something breaks.

Now, I’ve got another test on renting vs. owning your home.

 

Is a home an “investment”? Do you see your primary residence as an “investment”.

 

Well, what is an “investment” anyway? What is the definition of “investment”.

 

We are an investing show - and we take deep consideration of both the value of your time and your money here, so …

 

The definition of “investment”, per the Oxford dictionary is … “the action or process of investing money for profit or material result.” That’s it.

 

So is your home an investment? I think some people see it that way. 

 

Like I’ve said, if you’re rather lucky and buy the home in the right place and at the right time - you could profit from it. Though that’s more the exception than the norm … probably.

 

What I like to say is that in general, your primary residence is a poor FINANCIAL investment. But it is a good LIFESTYLE investment. 

 

See, in this way, your primary residence is like a vacation.

 

That is because, think about the money you spent on your last vacation. Whether you went to the beach or the ski slopes or French vineyards, it was not a good strict FINANCIAL investment, but it was a good LIFESTYLE investment. 

 

You improved your quality of life. You improved your standard of living.

 

A home is typically a good lifestyle investment and a poor financial investment.

 

Now, look, we’re all somewhat biased based upon our own set of experiences. That goes for me too. I am an 18-year real estate investor. 

 

I grew up in a home that my parents … owned. They even had the mortgage completely paid-off early. 

 

In fact, I think I shared with you before that my parents still live in the same Pennsylvania house that they’ve owned continuously since 1974.

 

But when I grew up in upstate Pennsylvania, all my friends’ families OWNED their homes. No one rented.

 

Later, I’d go on to learn about socioeconomic stratification and how I’d just be less likely to associate and even meet kids from renter households.

 

There was one notable outlier. When I was about 14 years old and the Petroski family moved to town - they were some pretty nice, relatable friends that were into sports & baseball cards - and I learned that they rented. 

 

And that was the first time that I ever remember hearing the word “landlord” in my life … when the Petroskis talked about their landlord, Mr. Hosley.

 

I’ll tell you, my parents owning their home might have help stabilize my childhood. I’m not really sure, because I can’t compare what it’s like to move as a kid, because we never moved.

 

If you’ve got kids, is uprooting them to move damaging to them? 

 

Or does it help them become more adaptable later in life? I truly don’t know the answer. I haven’t read about that at all.

 

But all the kids knew where I lived & could count on me for getting together. 

 

I had an awesome childhood, raised with two married parents, playing wiffle ball in the yard, catching crayfish in the creek, going camping, and collecting Star Wars action figures. All that great kid stuff. And part of that is … well ...

 

Home felt like home. If it’s important for you to build a legacy for your family and have your home incorporated into that - then perhaps only homeownership will give you those … nostalgic feelings. 

 

For me, it was knowing how my brother & I’s Christmas stockings were going to be hung from the mantle in the living room next to our wood-burning stove. 

 

The love from my parents is the most important thing for sure. But knowing that everything was going to be in the same place every year too?

 

You need to understand something. That right there brought me a FEELING, an emotion, that concern for a rent-to-value ratio NEVER could. That’s stuff’s got NOTHING to do with math.

 

If you can’t feel at home, at home, then where you can feel “at home”?

 

Remembering that spot on the living room floor where I was watching the television when the Phillies won the World Series. Yeah, I can still go there and show you that in my parents’ home.

 

See, if I go much further down this track, I’ll soon get teary-eyed here with you. 

 

So, with rent vs. own, is there a hybrid approach? No, there’s not really. There’s something called a lease-purchase. But those agreements are uncommon. 

 

One somewhat hybridized approach is … one that I’ve taken. 

 

I own the home that I live in. I’ve lived in that home for 8 years. But see, what I did is, knowing what we know about equity, is that I decided to own my home but have a low equity position.

 

I made a 5% down payment with a conventional loan. 

 

See, now I’ve got 20:1 leverage, very little skin in the game, and still have control, plus I got a 3.5% interest rate back in 2012.

 

See, instead of putting 20%, with 5% down, now I have that difference of 15% of the value of the home … out working for me as equity levers in other income properties in other states.

 

And no, I pay ZERO monthly PMI despite putting 5% down with a conventional loan. I’ve given you detail on how I pulled that off on previous shows, and you can too. 

 

The short story is, make a strong offer on your buy price and put it into the contract that your seller pay upfront PMI for you.

 

Now, there are some other distinct things happening in my geography where - if someone wanted to come buy my primary residence from me, but yet I could keep living here as their renter …

 

… and it was written into the contract that they couldn’t make me move, and I know I would pay them a lower rent amount than I’m currently paying in my mortgage & all those other homeowner expenses, I WOULD consider doing that.

 

Those situations are hard to find.

 

Yep, I would convert my mortgage payments to rent payments if I could get that arrangement. 

 

And why do this? Because the lower rent payment would increase my personal monthly cash flow, plus it would free up any dead equity that I have in the home.

 

Part of the rationale there is that my home market has few prospects for substantial appreciation in the next few years.

 

Well, in rent vs. own, what’s the bottom line with what makes the most sense for you financially? (Just … talking financial only here)

 

Be a renter in a high-end home and then buy low-cost income properties in investor-advantaged markets in the Midwest and South - that you rent out to others.

 

See, if you’re a renter in a high-end home, now you’ve got zero dead equity tied up in your home - and instead, it’s leveraging property in sensible markets.

 

In fact, I know a few other people - savvy people - that understand rent-to-price ratios and do exactly that. 

 

They’re FAIRLY wealthy people that are renters by choice - and own lots of rental property in low-priced markets.

 

But there’s no one definitive OVERALL factor in your Rent vs. Own decision because this is where finances and feelings intersect.

 

So here’s hoping that you’re finding a few considerations that you’ve never thought about before!

 

To be clear here and to summarize overall ...

 

  • Is homeownership a sham? Is it a rip-off? No.

 

  • Is homeownership overrated? Yes, it still is.

 

  • Many people that are renting should own. These people seem to know that.

 

  • Conversely, many that are owning would actually be better off renting. Few seem to know that and they’re even willing to take up an argument with you. 

They’ve heard the same “Paying rent is like throwing money away.” thing for so long, that they’d rather argue than really think it through.

 

Well, the reason that I did this show today - though it’ll be just as relevant if you’re listening 5 to 10 years from now, is pandemic-related. 

 

It’s because the COVID-19 pandemic is appearing to increase the migration rate as people look for less dense housing. 

 

Whether you’re migrating or not, now you better know whether renting or owning your home makes the most sense for you.

 

Next week here on the show, we’ll discuss what we usually do - INCOME property - property that you don’t live in, but instead, rent to others - and just exactly why the investment makes more ordinary people wealthy than anything else. 

 

If there’s one thing that I know about you, it’s that you are always going to live somewhere. 

 

And you know what else, so is everyone that you know. 

 

Every person that you know - may or may not own rental property - but everyone that you know is always going to live somewhere too. 

 

Do you think that this show would benefit them? 

 

This episode in particular might save your family and friends SO much time and money.

 

I love it when you share the show with others. So I’d be grateful if you took a screenshot of this episode and shared it on your Facebook, Instagram, Twitter, LinkedIn, or even through an email or text with those that you care about. 

 

I always endeavor to make things clear to understand here on the show. I’m Keith Weinhold.

 

Don’t Quit Your Daydream!

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
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
Apartment Building Investing with Michael Blank Podcast
Apartment Building Investing with Michael Blank Podcast
Michael Blank
MB 237: Biggest Myths about Building a Platform to Raise Capital – With Patricia Sweeney
Wish you could attract an audience of engaged, eager investors like we do at Nighthawk Equity? Have you thought about building a thought leadership platform but rejected the idea because you’re not a writer or a techie? Or because you don’t like the way you look or sound on camera? Are you ready to get over those false beliefs and scale your capital raise in a matter of months? Patricia Sweeney is the Marketing Automation Consultant behind Ideally Media Group, a firm that helps entrepreneurs and business owners implement content marketing systems to attract more of the right clients and significantly increase their revenue. With 10-plus years of experience in online marketing, Patricia has been the secret weapon behind some of the biggest names in the digital marketing space. She is also part of the Michael Blank team, working hands-on with the students in our Platform Builders program. On this episode of Apartment Building Investing, Patricia joins me to discuss the limiting beliefs that stop syndicators from building an online thought leadership platform. She explains why you DO have time and why you CAN justify the investment, describing how our students are attracting new investors—sometimes even before the program is over! Listen in for Patricia’s insight on avoiding the biggest mistakes syndicators make in building a platform and learn how YOU can scale your capital raise through our Platform Builder Incubator. Key Takeaways The advantages we have around platform building in 2020 * EASY to get message to many through social media * Tech never more powerful or easier to use * Outsource tasks to highly qualified global VAs What limiting beliefs stop syndicators from building a platform * I’m not a techie or a writer * I don’t have the time * I can save money by doing it myself * I can’t justify the investment Why you DO have time to build a thought leadership platform * Delegate/automate production and distribution * Don’t have to become digital marketing expert Why you aren’t really saving money by doing it yourself * Time = precious resource, better spent finding deals * Focus on what drives business forward (raise capital) Why you CAN justify the investment in building a platform * Leverage content marketing to attract more investors * Reinvest 20% of revenue and SCALE UP capital raise The biggest mistakes syndicators make in building a platform * Thinking you only need a website * Not having a lead magnet * Not communicating with your list * Trying to do everything at once * Striving for perfection My advice on avoiding overwhelm in building a platform * Build core platform as foundation * Layer on one lead gen program at a time Connect with Patricia Sweeney Ideally Media Resources Register for Michael’s Live Webinar on 10/28 Register for Michael’s Platform Builder Incubator Join the Nighthawk Equity Investor Club Download Michael’s Free Report—What’s the Best Investment: The Stock Market or Real Estate? What Is a Platform & Why Should You Build One? on ABI EP235 Upwork Fiverr Podcast Show Notes Michael’s Website Michael on Facebook Michael on Instagram Michael on YouTube Apartment Investor Network Facebook Group
35 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 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
Sell or Die with Jeffrey Gitomer and Jennifer Gluckow
Sell or Die with Jeffrey Gitomer and Jennifer Gluckow
Sell or Die
The Female Entrepreneur Summit and Supporting Female Entrepreneurs with Renee Deluca Dolan
In episode 523 of the Sell or Die Podcast, we have special guest Renee DeLuca Dolan. Renee is the founder and President of Contempo Design + Communications, a company that provides visual branding, graphics design, and other creative ad services. In this episode, we are diving into the topic of supporting female entrepreneurs and the Female Entrepreneur Summit which is Renee’s very own brainchild. Renee shared with us her own journey of how she got into sales and how she founded her own company, and the story behind the successful summit for female entrepreneurs. Some key points we discuss include: * Renee shares her background story on how she got into sales and how she created her company * Renee also discusses what motivated her summit, the Female Entrepreneur Summit, and how she sees the need to create a safe space for women in business * Finally, Renee teaches us the key principles of entrepreneurship and sales and shares with us her own secret sauce to becoming a successful CEO Renee started as an employee in the corporate world, but the restrictions and limitations in that environment pushed her to build her own company. Renee quickly experienced the struggles of starting up her own business as a female entrepreneur. That’s why she decided to organize the Female Entrepreneur Summit. If you want to learn more about how Renee’s story unfolds, tune in to episode 523 of the Sell or Die Podcast. See you next week for another episode of Sell or Die! If you enjoyed this episode, take a screenshot of the episode to post in your stories and tag us, @jengitomer & @jeffreygitomer! And don’t forget to subscribe, rate, and review the podcast and share your key takeaways with us! CONNECT WITH JEN & JEFFREY: Official Website Jeffrey’s Instagram Jennifer’s Instagram Sell or Die Hards Official Group
35 min
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