484: How to Avoid Living Below Your Means and Leverage Debt
01/15/24 • 36 min
Join our live, virtual event for Alabama income properties tomorrow at: https://gremarketplace.com/webinar/
Learn a lesson from a story about when I was a landlord. My neighbor was a fourplex owner-occupant, just like me. We built a fence together. He told me that he can’t wait to get his building paid off.
Don’t pay down your mortgage debt. In most cases, you can invest those dollars elsewhere for a higher return.
I discuss two things build wealth: 1) Leverage. 2) Borrowing against your assets, tax-free.
You don’t have substantial equity in your properties because you paid them down. You have substantial equity because its value has appreciated.
Today, you can report tenant rent payments to the credit reporting agencies.
Alabama has low property prices and the nation’s 2nd-lowest property taxes.
GRE Investment Coach, Aundrea Newbern, MBA, joins me.
Join our live event for Alabama income properties Tuesday, January 16th at 8 PM Eastern. The provider is offering 5.99% interest rates and 3% PM fees on your first three properties. Sign up now at: https://gremarketplace.com/webinar/
Timestamps:
The introduction (00:00:01)
Keith Weinhold introduces the podcast and mentions the topics to be covered, including lessons from being a landlord, a formula for wealth, and a focus on a lucrative property market.
Keith's early real estate experience (00:02:46)
Keith shares his early experience as a landlord, comparing notes with another landlord and discussing their strategies for living for free in their fourplexes.
Debt mindset and wealth building (00:05:30)
Keith discusses his divergent mindset from his fellow landlord, emphasizing the importance of leveraging debt for wealth building and portfolio expansion.
The power of leverage and portfolio growth (00:10:08)
Keith explains how he leveraged equity to expand his real estate portfolio, emphasizing the benefits of using accumulated equity to acquire more properties.
Real estate market diversification (00:11:22)
Keith advocates for buying properties across different states and markets to access better deals and maximize portfolio growth.
Tenant management and credit reporting (00:13:42)
Keith shares tips on tenant management, including the option to report rent payments to credit bureaus to incentivize timely payments and manage tenant relations.
Financial perspectives and real estate strategies (00:16:12)
Keith discusses contrasting financial perspectives with a CFO friend, highlighting the benefits of leveraging debt for real estate investments.
Market pulse and expense control (00:20:26)
Andrea discusses the market pulse for income properties, focusing on the Southeast region, and addresses the trends in controlling investors' expenses, particularly related to insurance rates.
Conclusion and invitation (00:22:02)
Keith and Andrea conclude the segment by discussing the migration trends in the Southeast and the importance of controlling expenses for real estate investors.
Lower Property Management Costs (00:22:55)
Discussion on the stabilization and decrease of property management costs due to technology and institutional investment money.
Investment Timing and Market Trends (00:25:01)
Encouragement for investors to take advantage of the current market conditions, including interest rates, prices, and inventory.
Alabama Market and Incentives (00:28:24)
Details about the Alabama market, including low property prices and incentives such as the 333 property management fee and 5.99% interest rate.
Live Event and Registration (00:32:33)
Information on how to register for the live virtual event to learn about the Alabama market and have questions answered in real time.
Final Encouragement and Event Promotion (00:33:27)
Encouragement to attend the live event to learn about the Alabama market and connect with an investment coach.
Resources mentioned:
Show Page:
Join our live, virtual event for Alabama income properties at: https://gremarketplace.com/webinar/
For access to properties or free help with a
GRE Investment Coach, start here:
Get mortgage loans for investment property:
RidgeLendingGroup.com or call 855-74-RIDGE
or e-mail: [email protected]
Invest with Freedom Family Investments.
You get paid first: Text FAMILY to 66866
Will you please leave a review for the show...
Join our live, virtual event for Alabama income properties tomorrow at: https://gremarketplace.com/webinar/
Learn a lesson from a story about when I was a landlord. My neighbor was a fourplex owner-occupant, just like me. We built a fence together. He told me that he can’t wait to get his building paid off.
Don’t pay down your mortgage debt. In most cases, you can invest those dollars elsewhere for a higher return.
I discuss two things build wealth: 1) Leverage. 2) Borrowing against your assets, tax-free.
You don’t have substantial equity in your properties because you paid them down. You have substantial equity because its value has appreciated.
Today, you can report tenant rent payments to the credit reporting agencies.
Alabama has low property prices and the nation’s 2nd-lowest property taxes.
GRE Investment Coach, Aundrea Newbern, MBA, joins me.
Join our live event for Alabama income properties Tuesday, January 16th at 8 PM Eastern. The provider is offering 5.99% interest rates and 3% PM fees on your first three properties. Sign up now at: https://gremarketplace.com/webinar/
Timestamps:
The introduction (00:00:01)
Keith Weinhold introduces the podcast and mentions the topics to be covered, including lessons from being a landlord, a formula for wealth, and a focus on a lucrative property market.
Keith's early real estate experience (00:02:46)
Keith shares his early experience as a landlord, comparing notes with another landlord and discussing their strategies for living for free in their fourplexes.
Debt mindset and wealth building (00:05:30)
Keith discusses his divergent mindset from his fellow landlord, emphasizing the importance of leveraging debt for wealth building and portfolio expansion.
The power of leverage and portfolio growth (00:10:08)
Keith explains how he leveraged equity to expand his real estate portfolio, emphasizing the benefits of using accumulated equity to acquire more properties.
Real estate market diversification (00:11:22)
Keith advocates for buying properties across different states and markets to access better deals and maximize portfolio growth.
Tenant management and credit reporting (00:13:42)
Keith shares tips on tenant management, including the option to report rent payments to credit bureaus to incentivize timely payments and manage tenant relations.
Financial perspectives and real estate strategies (00:16:12)
Keith discusses contrasting financial perspectives with a CFO friend, highlighting the benefits of leveraging debt for real estate investments.
Market pulse and expense control (00:20:26)
Andrea discusses the market pulse for income properties, focusing on the Southeast region, and addresses the trends in controlling investors' expenses, particularly related to insurance rates.
Conclusion and invitation (00:22:02)
Keith and Andrea conclude the segment by discussing the migration trends in the Southeast and the importance of controlling expenses for real estate investors.
Lower Property Management Costs (00:22:55)
Discussion on the stabilization and decrease of property management costs due to technology and institutional investment money.
Investment Timing and Market Trends (00:25:01)
Encouragement for investors to take advantage of the current market conditions, including interest rates, prices, and inventory.
Alabama Market and Incentives (00:28:24)
Details about the Alabama market, including low property prices and incentives such as the 333 property management fee and 5.99% interest rate.
Live Event and Registration (00:32:33)
Information on how to register for the live virtual event to learn about the Alabama market and have questions answered in real time.
Final Encouragement and Event Promotion (00:33:27)
Encouragement to attend the live event to learn about the Alabama market and connect with an investment coach.
Resources mentioned:
Show Page:
Join our live, virtual event for Alabama income properties at: https://gremarketplace.com/webinar/
For access to properties or free help with a
GRE Investment Coach, start here:
Get mortgage loans for investment property:
RidgeLendingGroup.com or call 855-74-RIDGE
or e-mail: [email protected]
Invest with Freedom Family Investments.
You get paid first: Text FAMILY to 66866
Will you please leave a review for the show...
Previous Episode
483: Five
Yes, simply "five". The number "5" has remarkable symbolism on both real estate investing the GRE way, and elsewhere in your life pathway.
See how real estate actually performed when compared to other asset classes in the past year: stocks, gold, bitcoin, and bonds.
Everyone knows that some commercial real estate is sagging, like office. Industrial is steady. Retail is actually booming.
Recession predictions were so bad. In the past year, we had low unemployment, rising GDP, solid corporate profits, and inflation fell.
I explain what an inverted yield curve means and why it matters to you.
Not only does “Real Estate Pay 5 Ways”, but the number “five” often has significance in both symbolism and numerology.
Using a $40K down payment on a $200K property, I add up how “Real Estate Pays 5 Ways” and sum a lofty 46% total rate of return with today’s real-life numbers.
We have available inventory of income property. If you’re ready to buy, contact our Investment Coaches. It’s free at www.GREmarketplace.com/Coach
GRE Marketplace properties are less expensive because: there’s no agent to compensate, selective investor-advantaged markets, and not dealing with owner-occupant emotions.
Timestamps:
Asset Class Performance (00:01:25)
Comparison of various asset class performances in the past year, including stocks, global stock markets, bitcoin, treasury notes, gold, and residential real estate.
Inverted Yield Curve Explanation (00:07:47)
Explanation of an inverted yield curve, its significance as a predictor of economic downturn, and a simplified example to illustrate the concept.
Five Ways Real Estate Pays (00:12:18)
Discussion of the five ways real estate provides returns to investors: appreciation, cash flow, return on amortization, tax benefits, and inflation profiting, with a focus on the symbolic significance of the number five.
Real Estate Returns Calculation (00:18:49)
Illustration of a simplified method to calculate the total return on investment from a real estate property, covering appreciation, cash flow, return on amortization, tax benefits, and inflation profiting.
Investment Opportunities (00:16:23)
Promotion of investment opportunities with Ridge Lending Group and Freedom Family Investments, emphasizing the potential returns and benefits of investing with them.
Upcoming Episodes and Conclusion (00:17:44)
Teaser for upcoming episodes featuring investment coaches and discussions on property tax, and a conclusion expressing the significance of real estate returns and investment.
Replacing Toilet Flappers and Spackle (00:23:56)
Discussion on conservative estimates, tax benefits, and property management costs in real estate investment.
Visual Explanation of Five Ways (00:25:09)
Explanation of the five ways real estate pays returns and the simplicity of real estate math.
Introduction to Get Rich Education (00:26:17)
Overview of Get Rich Education's history, team, and independent voice in the market.
Real Estate Market Inventory (00:28:40)
Discussion on the slowing real estate market, available inventory at GRE marketplace, and the importance of free coaching.
Ethical Use of Other People's Money (00:29:51)
Explanation of the formula for starting or growing a portfolio of buy-and-hold properties, emphasizing the use of a small down payment.
Benefits of Off-Market Properties (00:31:13)
Explanation of competitive off-market property prices and the advantages of buying direct, investor advantage markets, and property management solutions.
Safeguards in Property Purchase (00:33:57)
Importance of property inspection, lender appraisal, and independent third-party property inspection in property purchase.
Free Coaching and Financial Readiness (00:35:03)
Emphasis on the free coaching at GRE marketplace, the absence of upselling to paid courses, and the importance of financial readiness before investing.
Disclaimer and Host Information (00:36:05)
Disclaimer regarding the content of the show and information about the host operating on behalf of Get Rich Education LLC.
Resources mentioned:
Show Notes:
For access to properties or free help with a
GRE Investment Coach, start here:
Get mortgage loans for investment property:
RidgeLendingGroup.com or call 855-74-RIDGE
or e-mail: [email protected]
Invest with Freedom Family Investments.
You get paid first: Text FAMILY to 66866
Will you please leave a review for t...
Next Episode
485: The Creeping Silent Depression and Current Economic Realities with Doug Casey
Has America already descended into a depression worse than the 1930s Great Depression?
Today’s guest, Doug Casey, suggests that we have. He joins us from Buenos Aires, Argentina, where inflation has been 100%+.
Is real estate cheap, adequately priced, or overpriced?
America’s national debt is so bad that we must now spend $1T annually just on the interest alone.
Keith Weinhold and guest Doug Casey explore the silent economic depression in America, discussing signs and impacts on daily life.
They compare real estate affordability across locations, viewing housing as a consumer good. Doug offers insights on Argentina's housing market, inflation, and the new president's influence.
They critique government intervention, fiat currency, and advocate for gold-backed currency, emphasizing moral values.
Strategies to counter currency debasement, like investing in durable goods and property improvements, are shared, alongside the benefits of spending on experiences and potential tax advantages of real assets.
Timestamps:
The silent economic depression (00:00:00)
Discussion on the concept of a silent economic depression and how it may be affecting America.
Real estate and property management issues (00:02:32)
An unusual property management incident and the impact of inflation on real estate in Argentina.
The guest's background and consistency (00:03:53)
The guest's background, consistency in views, and a discussion on diverse viewpoints.
Comparison of housing costs (00:04:59)
Comparison of housing costs and other expenses between the Great Depression era and the present day.
Real estate in the United States and Argentina (00:06:08)
Comparison of real estate prices and living expenses in the United States and Argentina.
Housing as a consumer good (00:09:29)
Discussion on housing as a consumer good and the impact of government policies on housing and wealth creation.
Comparison of housing costs and amenities (00:10:56)
Comparison of housing costs, amenities, and political changes in Argentina.
Impact of inflation on standard of living (00:14:37)
The impact of inflation on capital, standard of living, and the unsustainability of the current economic situation.
Government deficits and inflation (00:18:05)
Discussion on government deficits, inflation, erosion of the middle class, and the role of the government in creating inflation.
A Currency and Gold (00:20:22)
Doug Casey discusses the benefits of using gold as currency and the potential impact of government involvement.
Investing and Loans (00:22:42)
Keith discusses investing in real estate and loans, providing insights and tips for beginners and veterans.
Government Numbers and Inflation (00:24:54)
Doug challenges the accuracy of government unemployment and inflation figures and predicts higher inflation levels due to excessive money creation.
US Involvement and Financial Meltdown (00:27:57)
Doug discusses the impact of US military involvement, potential financial meltdown, and the unstable foundation of global debt.
Strategies to Counter Currency Debasement (00:32:05)
Doug presents the concept of saving in durable goods as a strategy to counter currency debasement and avoid capital gains tax.
Beating Inflation (00:34:41)
Keith proposes spending money as a way to beat inflation and improve quality of life, while Doug emphasizes the importance of saving for the future.
Doug Casey's Novels and Publications (00:36:44)
Doug promotes his novels and encourages listeners to subscribe to internationalman.com and watch his YouTube channel for more insights.
Improving Quality of Life and Beating Inflation (00:38:03)
Keith suggests making improvements to one's home as a way to beat inflation and improve quality of life, without incurring higher tax assessments.
These are the timestamps covered in the podcast episode transcription segment, along with their respective topics.
Resources mentioned:
Show Page:
Doug Casey’s YouTube Channel:
https://www.youtube.com/@DougCaseysTake
Doug Casey’s blog:
InternationalMan.com
Doug Casey on Donahue in 1980:
https://youtu.be/uAk6_74m_kI?si=qeQw0404xcTIAsOU
For access to properties or free help with a
GRE Investment Coach, start here:
Get mortgage loans for investment property:
RidgeLendingGroup.com or call 855-74-RIDGE
or e...
If you like this episode you’ll love
Episode Comments
Generate a badge
Get a badge for your website that links back to this episode
<a href="https://goodpods.com/podcasts/get-rich-education-25325/484-how-to-avoid-living-below-your-means-and-leverage-debt-42122219"> <img src="https://storage.googleapis.com/goodpods-images-bucket/badges/generic-badge-1.svg" alt="listen to 484: how to avoid living below your means and leverage debt on goodpods" style="width: 225px" /> </a>
Copy