Keith Weinhold is the founder of Get Rich Education, Forbes Business Council Member, Host of the Get Rich Education podcast, creator of “Real Estate Pays 5 Ways”, runs up Alaskan mountains shirtless.
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Guest Resources
Get Rich Education Podcast – Real Estate Investing with Keith Weinhold. The first and longest running real estate investing show.
Get Rich Education – Passive income. Massive outcome. Give yourself a raise, build wealth and live your daydream.
3 Value Bombs
1) There is a risk in delayed gratification. When it is too much delayed, it becomes denied gratification.
2) Think like a wealthy person with an abundance mindset. You’ve got to do and think differently and it all starts with what is going on inside your head.
3) A lot of the virtues of debt are counterintuitive. Use debt as a tool for leverage. Compound leverage trumps compound interest.
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Show Notes
**Click the time stamp to jump directly to that point in the episode.
Today’s Audio MASTERCLASS: Why Real Estate Investors Must Stop Looking at Properties
[1:13] – Keith shares something that he believes about becoming successful that most people disagree with.
- You probably need to have more debt especially when you are in real estate, property or your own home. Debt is his favourite four letter word and if its not, it’s the word loan. He has had millions of dollars in debt from a young age and has piling it on.
[2:05] – Keith talks about how to attain extraordinary lives.
- Ask a person if they need to think and act differently in order to build real wealth and that person will probably agree. But as soon as you tell that person what are those specific things, they get a little scared.
- To live an extraordinary life is to get your money right to help you buy the time to set up the kind of life that you’ve always wanted. You can choose to be a conformer or you can choose to be wealthy. Mark Twain quoted “Go out on a limb because that’s where the fruit is.” Most of us don’t go out on a limb. We work hard, we eat dirt and postpone vacations, We overprioritized paying down debt so we can start living the life we really want and at age 65.
- If you want to live an extraordinary life, do it at the age of 35 because there’s a risk to postponing the best in life at age 65, You are not sure if you will be able to enjoy everything physically at that age.
- There is a risk in delayed gratification. When it is too much delayed, it becomes denied gratification.
- Think like a wealthy person with an abundance mindset. You’ve got to do and think differently and it all starts with what is going on inside your head.
[4:43] – Keith talks about how to start with just a little money in real estate.
- Wealthy peoples’s money either starts or end with real estate.
- He got a 3 ½ % downpayment in FHA loan, a program that still exists today. He bought a 4-plex property in Anchorage Alaska and he lived in 1 unit and rented the other 3. He lived there for a minimum of 12 months to qualify for the program with a minimum credit score of $580.
- He learned from living in that 4-plex apartment to not focus on making money to work for you or build wealth . The paradigm shift is ethically get other peoples’ money to work for you. By putting a small downpayment on this 4-plex, he is using ethically other peoples’ money at the same time to control the property and mortgage and all expenses, the government’s money for the loan and for generous tax incentives at scale.
- This fuelled his wealth. Buy and hold is where you can start in real estate with a very little money that generates wealth.
[8:00] – A timeout to thank our sponsors.
- ZipRecruiter: Save time hiring for 2025 with new ZipIntro! Just go to ZipRecruiter.com/fire right now to try ZipIntro FOR FREE! ZipIntro. Post jobs today, talk to qualified candidates tomorrow!
- Northwest Registered Agent: Protect your privacy, build your brand, and set up your business in just 10 clicks in 10 minutes! Visit NorthwestRegisteredAgent.com/fire and start building something amazing!
- DeleteMe: Take control of your data and keep your private life private by signing up for DeleteMe. Get 20% off your DeleteMe plan when you go to JoinDeleteMe.com/eofire and use promo code EOFire at checkout!
[10:57] – Keith talks about why real estate investors must embrace debt.
- Debt is a tool that allows you to do more with less. The risk of taking too much debt is when you become over leverage and you don’t have the income to make your payments.
- As entrepreneurs we will not put a million of dollars under a mattress because we know that inflation decrease its purchasing power. Instead, do the opposite by borrowing a million of dollars from an apartment building and then inflation decreases your debt.
- When you buy a property, you have to buy right because you want the rent income to exceed the expenses. That means all your debt sources are reliably outsourced to your tenants. They are paying for your principal in the million dollar loan and a little bit on top of that called cash flow.
- By having his debt in place, he gets a higher leverage return.
- A lot of the virtues of debt are counterintuitive. Use debt as a tool for leverage. Compound leverage trumps compound interest. Inflation pays it down for you and tenants pays it down for you simultaneously.
[16:56] – Keith tells why real estate investors should “stop looking at properties”.
- Its another counterintuitive because in investing in real estate, the property is the fourth most important thing.
- The most important thing is you. What do you want the real estate to do for you and you have to think that through if you are looking for appreciation or for cashflow or for a monthly passive income. Once you have figured that out you can go to the second most important which is the market. The third is the team of professionals that you surround yourself with. Your key property manager is what the makes the whole thing passive.
- Once you have all the three, you are ready to look for a property and you are now being strategic and smart.
- It must be done in the order of importance. Most people do 4,3,2,1 and then in the end they realize that they can’t handle it.
[20:31] – Keith talks about where we can find a real estate advantage in today’s market.
- You can find a real estate advantage in any market, the word is affordability.
- He helps people to find the right income property and the place where the opportunity is right now is with new build properties.
- Buying new build properties with a 20% downpayment allows you to increase your cashflow and reduce mortgage payment by renting it to communities.
[23:35] – Call to action.
- Get Rich Education Podcast – Real Estate Investing with Keith Weinhold. The first and longest running real estate investing show.
- Get Rich Education – Passive income. Massive outcome. Give yourself a raise, build wealth and live your daydream.
[25:19] – Thank you to our Sponsor!
- DeleteMe: Take control of your data and keep your private life private by signing up for DeleteMe. Get 20% off your DeleteMe plan when you go to JoinDeleteMe.com/eofire and use promo code EOFire at checkout!
Killer Resources!
1) The Common Path to Uncommon Success: JLD’s 1st traditionally published book! Over 3000 interviews with the world’s most successful Entrepreneurs compiled into a 17-step roadmap to financial freedom and fulfillment!
2) Free Podcast Course: Learn from JLD how to create and launch your podcast!
3) Podcasters’ Paradise: The #1 podcasting community in the world!
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