The Value of Property, Dollar Debasement, Inflation Benefits and Home prices! | Keith Weinhold

Get a loan, don't pay all cash. And get a rental property because in that case the tenant pays all of your interest payment for you and all the other expenses in a cash flowing rental. So be a beneficiary of inflation rather than it being detrimental to your financial life. Real estate is the best vehicle for that I've ever heard of.

Hey everybody. Flipping Danny here. Welcome to the Freedom show and another exciting episode. This is another. Well, this is part dos.

Yeah.

Of Keith Weinhold. We couldn't keep. We couldn't put Keith into one, we had to put Keith into two. This was. Hopefully you saw episode one, so you know what I mean. Episode two, put on your seat belts, make sure all hands and arms are in the car until the ride comes to a complete stop. Because this is a, this is a doozy.

Yes. And if you didn't, if you missed part one, you don't have to listen to them in order. We actually, when we realized it was a longer episode, we actually divided it up so that it would make sense for any of the listeners whether you're listening to part one or part two. But Keith is just a really, really great friend of ours. We've known him for five years. We're really, really excited to have him on our show because we've been guests on his show for every year for I think for the last five years. And it's just been a really incredible relationship. And so in the last episode before we got on with Keith, we were talking about relationship capital and how important it is to have that long term mindset of making everything a win win and helping each other grow. So we have just been fortunate to be able to be with Keith as he's helped our family of companies grow by exposing us to other people. He has such an amazing audience. He is so knowledgeable. There's some things that we have so many, like similarities in our stories and how we achieve success and the things that we talk about right now. And then there's some things like in this episode that are like total Keith Weinhold. Like he trademarked like any coins phrases and he trademarks them not so that people like us can't share them or talk about them. But he just doesn't want anybody else to be able to say, hey, you can't say that because I trademarked it. So he trademarks his coin phrases first. And he's just an amazing, amazing man. And so I really loved the first episode where he was talking about his freedom story. So if you want to hear Keith's Freedom Story, you're going to want to go back to that episode, but you don't need to listen to it before you watch this one. Watch or listen, depending on if you're watching on YouTube or listening to the podcast. But the Freedom Story I will just share quickly is that he started off with a four plex. Right. So the top three questions that we get all the time is where do I start? Which path is right for me, and who do I trust? So where Keith started was he, he was talking about that, you know, I'm the average of the five people that I, you know, surround myself the most. And two of his friends were investing in real estate, so he said, okay, I'll invest in real estate too. And so he bought a 4 plex, he lived in one of the units, and he rented out the other three and was able to eventually sell that property 11 years later. And he 1031 it into an 11 unit at that point in time. That was the start to do. Yeah, that's the start of his investing journey. So that's how he did it. And he was working@the dot, Department of Transportation. Yeah. Yeah.

In Alaska.

Yes. So what a perfect example of somebody achieving such great success. To this date with his investment portfolio. Now he has a podcast, Get Rich Education, that has so many listeners. I mean, he's one of the very first podcasters out there. So his audience is just amazing and really, really big, and he just adds so much value. So that's why we were excited about having him on there. So I don't know about that first episode if there's something that stood out to you besides what we talked about already that you just like or like. I just love this part of his.

Yeah, I was going to say that that's one of the similarities between Keith and us is his podcast has his over 5 million downloads and ours has had 5. So that's very similar. So that's, that's, that's, that' pretty close. But no, I mean, I, I, I said on the last one, I mean, I remember the first podcast we did with him. I, I was just, I was sweating in my seat, you know, because that's Keith Reinhold, you know, and, and, and I mean, we've known him for so long, but it's still Keith, you know, so I was looking forward to these dates, you know, to the data, especially to record this. But yeah, it's, I, I, I had so much fun just peeling back the layers, you know, of, of the story. And, and no, I loved it. Loved it.

And I was excited because I really just view him as just as a friend.

Right.

Even when we were starting our podcast before, in 2022, we did a 365 day series, Freedom Through Passive Income. That was season one of our podcast. And he was the person that I went to to say, hey, you have a very highly successful and engaged audience. You've been doing podcasting for years. You were one of the first. Can you give us some tips? And honestly, one of his, his tips was just, you know, be ready. It's, it's work, you know, it's not, it's not easy to create these podcasts and to be able to edit them and to do a good job and put on a really great production. So we really felt like, okay, so for this first year we're just going to do some simple stuff. We're just going to keep it real like we like to do. And we did the 365 day journey, so that people kind of see a day in the life, you know.

Yeah, because that was easy.

Yeah, it wasn't easy, but it was at least just like a phone. Right. Whereas it did give us the time to really prep for something like this in the Freedom show and where we do have a podcast room, we are bringing on guests, we're bringing on our network and we're introducing you to the people that we talk to and we have built relationships with over the last five, six, seven years. And I think that's why I was really excited about having Keith on is because he was one of the very first. He's been with us for a very long time. He's an investor with us himself. And to be able to expose our network to somebody like him, who we look up to, who we have had such a great long term relationship with, who has the same heart as we do in terms of giving back to others and, you know, being there to help them on their journey. I really loved his Get Real story in the episode one, two, where he's just sharing the very first mistake of buying a pretty house. You know, looking at the numbers, you.

Know, this one's pretty.

And we find that many times when people are looking at the turnkey rental properties and it doesn't matter. It's not just females. I was going to say a lot of females, but it's. There's males too. And like, you know, I really like that one. And so Keith, in his story, it was like, it was a brick house. Like, like the local people that I talked to said, don't Buy it. We're not going to be able to keep that one rented, but it was a really pretty brick house, and I really like. I thought, no, I'm going to buy this one. And it was a good price. So he ended up buying it and ended up not being a good deal. So he should have, you know, trusted the. The boots on the ground there.

Who trusts realtors? Come on.

Just kidding.

I'm a realtor.

So it's just. I love hearing stories like that because we all make those mistakes. We all have those challenges in business or in real estate or in life. And the. The most important thing that we could do for our audience and our list, our listeners and our viewers, is to share those challenges, what happened, and how we solve them, because that allows you to approach a similar situation much differently. Because you'll remember, hey, flipping Danny said this or Keith said this. So let's make sure that I don't make the same mistake. And they told me what they did as a result in order to, you know, maneuver around that particular scenario. So I loved that part of the episode. But today we're going to really dig into his. His superpower, which is, you know, how he coins those phrases and how he educates his audience. He's got, you know, a course that he gives away for free. He. You're going to hear in this episode all the. The things that he has coined, how he teaches his audience about real estate and the different ways that you can get paid, the five ways to get paid. He talks about inflation, triple crown. He talks about some other things that.

Don'T give it all away.

I know, but. Well, I'm just kind of getting everybody excited. Like, like, tune in if you're in your car. You might want to, like, listen to this one again. Right. Because this is just jam packed with information. We even talked to Keith after the episode and said, hey, we might take some of those segments and just make them a silo segment on our YouTube channel so that somebody who just wants to learn about inflation can. Can listen to Keith and what he says about inflation and somebody who just wants to talk about why I won't. I'm not going to spoil anymore. We're just going to. It's not. Is it time?

Yeah. You're giving away the goods.

All right, let's talk to Keith. Here's part two. I want to ask you, one of the other things that you had mentioned was stop looking at properties because the Property is only 4th most important. Can you share a little bit more about that?

Yeah. This Blows a lot of people away. To a person that's new and all enthusiastic about real estate, I usually need to advise them with something they never imagined that they would hear. Stop looking at properties. They're like, well, wait a second, what are you talking about? Stop looking at properties? In order to benefit from direct investment in real estate in the five different ways real estate pays, which is a coin that I term, a term rather that I coined it flip, laid out in the bio there. In order to get all those benefits, I need a property. Well, my point is. Whoa, whoa, whoa, whoa, whoa, whoa, whoa, whoa. Slow down, slow down. The property, like Danny said, it is only the floor. Fourth most important thing in real estate investing. That's why you temporarily need to stop looking at properties. So let's. To the beginner, I often tell them, you know, let's get your priorities straight and then we can start looking at properties again. Because the number one thing in this real estate investment is you. What do you want real estate to do for you that's at the top? Are you looking for appreciation or cash flow, which is a common answer, or tax benefits? Are you looking for a property that gives you a lifestyle benefit that you can use, you know, one month a year in, in Cancun or something? What do you want real estate to do for you? Once you think that through, you know that that's number one. The second most important thing is the market that you're going to buy in. Now we can think of market in a few different ways, different asset types like a trailer park or short term rentals or large apartment buildings or single family homes. We can think of the market that way. But another important way to think of the market is that geographic market. And I talked about how I like to buy in MSAs, Metropolitan Statistical Areas, various ones for diversification throughout the United States. You know, I generally avoid markets that are really rich in commodities or have a big part of their economic base be tied to the military because those things are volatile. I mean, military involvement that can fluctuate a lot based on presidential administrations and then commodities. I mean, just imagine one of the worst markets for me to invest in at all would be a small ho dunk town of 9,000 people. That's not close to an MSA where 30% of that town's employment is tied to the zinc mine or the tungsten mine. Because now one third of the economic base of that community is tied to the fortunes of zinc or of tungsten. Well, if I'm going to buy property there, say a 4 plex. I need to have it filled with rent paying tenants. And that income needs to come from a stable economic base. That's why I avoid markets, for example, that are too rich with commodities or with the military. So I like to be in the bigger markets where there's some ballast and I like to see markets that have long term sustainable drivers like technology or medical or a lot of distribution jobs. I know you guys do a lot of business in Ohio. That's really one of Ohio's chief market drivers is distribution. You can't outsource distribution jobs over to, to Taiwan or China. They need to be right there in that geography, for example, where you could use the Ohio river and the Great Lakes and all the great transportation access that Ohio has. But this is why the market is more important than the property. Because you could buy a, you know, a mansion in a, in a swamp in the middle of nowhere and who you're going to get to rent that thing. So that's why the market's the second most important thing. And what's third most important before the property? Fourth, what's third most important is that team of professionals that you surround yourself with. And this could be your mortgage loan officer or your 1031 exchange qualified intermediary. But really that most important team member, the glue that makes all this stick together, is a competent, communicative property manager. All right, so once you've got that set, you, the market and the team, okay, now fourthly, you can finally start looking at properties. The property matters, definitely, but it's only the fourth most important thing. And you know what's so funny? Flip and Danny. Most people get it completely backwards. Instead of going 1, 2, 3, 4, they go 4, 3, 2, 1. First thing that's right about a property, and then they buy a property, maybe because it looks pretty, and then it's a little bit too late, they realize, oh, they don't want to be getting texts from tenants. So then after they've already bought the property and it's too late, then they go out and try to find and see if there's a good manager in that market. And after that, then they try to figure out, oh, did they even buy in the right market? And then it's back up to number one, like, does this property even do what I wanted it to do for me? I wanted it to provide safe passive income. And this is taking so much of my time. So again, this is why the property is only the fourth most important thing. And to review the three more important things in order, the Hierarchy is you, the market, and the team.

I love that. It mirrors so much of what Flip and I say all the time. When they ask the where do I start? Which path is right for me? Who do I trust? We always talk about, hey, a lot of people don't answer the right questions when they get started. And you just put it in perfect order.

I love it.

So thank you.

Yep, now you're buying strategically. And by the way, I would like to give credit to the real estate guys, Robert Helms and Russell Gray. They didn't explain that the property is only the fourth most important thing the way I did, but they introduced me to some concepts that got me thinking that way. So credit to them.

I love that. Love, love, love it. Okay, talk to us a little bit about inflation. I hear you talk about this a lot in your YouTube videos especially, but also on podcasts. So share what your insight is about the market today and how inflation is affecting it.

Yeah, for real estate investors, you should be benefiting from inflation three ways at the same time. It's with a concept that I coined called the inflation triple crown. And this does involve a few numbers. So if you're okay with me introducing a few numbers, I'm going to try to keep it simple for you. And you know what, Flipping Dana, you know what the cool thing about real estate numbers is? They're always simple. It's just addition, subtraction, multiplication, and division. Those are the only four mathematical operations you need to use. I mean, have you guys ever used trigonometry or calculus or exponents in real estate? Like, I haven't had to.

Nope, nope, never.

See, it's simple. It's just knowing what numbers to use. So, okay, how can one actually benefit from inflation? Like when you see all this inflation out the supermarket and it still feels like your grocery bill is going up 10% year over year, even though CPI inflation is lower than that. And there's tipflation and everyone's asking for tips and you can actually benefit from this arrangement just like I am. So the inflation triple crown is how you benefit from inflation three ways at the same time. The first way is with asset price inflation. The second way is debt debasement, and the third way is cash flow enhancement. And Forbes published my article about the inflation triple crown because they really liked it. But there do get to be a few numbers here, so let me just keep it as simple as I can. If you say, purchase a primary residence, all cash for a million dollars, this is the first leg of the inflation triple crown. And don't worry if you're like, hey, I couldn't, this is not relatable. I couldn't afford a million dollar property. All cash. It's all ratio. So it's okay if you could just hang in there. If you buy a million dollar property and say there's 10% inflation over a couple years, all right, well then your primary residence is now worth $1.1 million. And that in itself shouldn't feel that good. That's only a hedge against inflation, right? Because now you've got 10% more dollars, but each dollar is worth 10% less. Okay, but at least you do have that hedge. You're kind of right back where you started with that first one. You've with asset price inflation, the second leg of the inflation triple crown, that is called debt debasement. Okay, Save this million dollar property. You didn't pay all cash. You got an 800k loan. This is going to benefit you because the bank doesn't ask to be repaid that 800k in inflation adjusted dollars. So when you got 10% inflation over time, your 800k debt gets diluted. You only owe the bank back 720k because again, the bank doesn't ask to be repaid in inflation adjusted dollars. Your principal and interest payment stays f. Generally, wages and salaries go up over time. So now you're beginning to be a beneficiary of inflation as it debases your debt. And then the third leg of the inflation triple crown, this is really the way to do it. When you don't just get a loan for a property, you get rental property with a loan on it. Say it's a million dollars worth of rental property, okay? Now you're benefiting a third way, not just the asset price inflation and not just the debt debasement, but actually with cash flow enhancement. Because with your rental property, 10% inflation over time, say then a $1,000 rent goes up to an eleven hundred dollar rent, okay? Even though that went up 10%, the cash flow you feel in your pocket every month might have gone up 20 to 25%. Why is that? Again, it's because your principal and interest payment stays fixed. Inflation cannot touch that. So that's the inflation triple crown again. It's asset price inflation, debt debasement and an enhancement on your cash flow. So the best way to do it is to get a loan, don't pay all cash and get a rental property because in that case the tenant pays all of your interest payment for you and all the other expenses in A cash flowing rental. So be a beneficiary of inflation rather than it being detrimental to your financial life. Real estate is the best vehicle for that I've ever heard of.

There is nobody that I know of that talks about this. So this inflation triple crown. I remember listening to you for the very first time on a podcast talking about how to hedge against inflation and I was like flip, nobody talks about this. Like, like listen to this podcast and listen, listen to what Keith is talking about. And it was the first time, you know, I ever got exposed to this. So where did you, where, where did you lear. So where. Like, like why are you the only person talking about it? I guess that's really where I'm coming from.

Yeah, well, I probably heard from elsewhere that real estate is a hedge against inflation. Like if you buy a million dollar property, inflation is 10%, then your million dollar property is a million one. But really I came up with in coined the other two the debt debasement and the cash flow enhancement. I just conceived of and coined that myself. I guess part of that is because I've been a real estate investor for, for quite a while now and I, I look at my numbers and I, I see and understand what inflation does for me and I think this has a lot of relevance because if anyone looks at the long term history of the dollar, it just keeps getting debased. I mean when the Fed started back in 1913-1914, a dollar now is only worth about 3% as much as it was back then. We all know the Fed has an inflationary mandate. They'll just tell you they target 2% inflation. As we know it's been running higher than two years now. But the point is, is that you can't really count on a lot of things in investing. No one really knows a future. People are always trying to predict the future of interest rates or prices or all that. But one thing that's almost completely predictable is long run inflation. So let's take one of the few things that's a near certainty and then figure out how we can profit from that. That's really the difference between being an investor and being a speculator. So win with real estate with the inflation triple crown, buying a cash flowing property with a loan.

I love that you just shared that last part and that's why I wanted to ask you this. You started off the podcast talking about I got into real estate because you are the average of the five people that you surround yourself with, right. And you are important and valuable to us and we talk about you a lot. Even some of our podcasts. When we were doing the 365 day series, I would mention something. I was like, I heard this from Keith Weinold, and we talk a little bit about it and point them your way because you do coin some really great phrases. You come up with things that other people aren't talking about that really add some value and intelligence to what we're doing as real estate investors. So I wanted to ask you that question so that you could say, hey, this is something that I've coined because I think when you and I have been talking back and forth, there's like five or six things that you're like, real estate gets paid five ways or pays you five ways. And then inflation triple crown, you've got multiple things and they're all like, just original thought, and it makes us better. And I just love listening to you. So thank you for sharing that with our audience as well.

Thanks. I've had a bunch of those things trademarked, but I completely don't mind if other people use them. I just don't want anyone to take one of these things away from me and say, I wasn't saying that, but I actually want other people to use it. And you don't even have to give me the credit. Like, helping the people is more important than getting the credit. So I love it when others talk about the inflation triple crown, and I sure don't need to be credited or mentioned or anything like that. I appreciate the outlook, though.

Yeah, absolutely. I think it's also giving to others in that it tells other people who we surrounded ourselves with, who we're learning from. Right. So I love saying, hey, go get to know Keith Weinhold. Because some of these tidbits are not us. It's actually coming from Keith, and he's one of the people that we surround ourselves with. So I love that part. That's really why that I like to give credit so I can just tell people, hey, here's somebody that adds value to our lives. I think that he can add value to your lives as well. So the last thing that I wanted to mention or have you share is higher mortgage rates correlate with higher home prices.

Yeah. Which is opposite of what most people think. You, the listener and viewer here, you actually heard Danny correctly. And, you know, here I am saying all these iconoclastic sort of things. You know, I'm really here to tell you that the listener and the follower here, things that you wouldn't expect to hear, like, stop looking at properties because it's only the fourth most important thing in inflation. That's actually a way for you to profit. So, you know, all these sort of paradoxical things are really what I'm here to help you with. And one of them is higher mortgage rates correlate with higher home prices. And almost everyone thinks it's the opposite. Almost everyone thinks that when mortgage rates go higher, oh, well, of course, don't you know that, like, property prices would have to come down because a person's payment would have to be larger, and that impedes affordability. So therefore, when rates rise, prices fall. I've even heard some experts say this and some real estate analysts in the industry, they think that when mortgage rates rise, home prices have got to fall. And what I would like to say to some of those people is, is when has that ever happened? When has that ever happened? I think it's easy to have a hunch about some things because economics really deal with a lot of variables, and the economics of real estate do as well. So sometimes the variable, it changes, doesn't change the output in the way that you think it's going to. So if we would look at the last 30 years, okay, since 1994, in this stretch, we've had mortgage rates that have increased substantially seven different times. That's defined as a mortgage rate that increases by 1% or more. Okay, that's happened seven different times in the last 30 years, these substantially rising rate environments. And of those seven times that mortgage rates rose, how many of those seven do you think that home prices rose or fell? Maybe some people would think, oh, home prices would have a hard time rising in any of them. Maybe, maybe once or twice, or there was some blip or some aberration. No, the last seven times that mortgage rate rose, home prices rose every single time, in conjunction correlating with higher mortgage rates. And this is important because mortgage rates have been on everyone's mind, even if you've never owned a home, just every layperson out on the street, just some guy you see in the aisle in 7 11, like he would know that mortgage rates have become substantially higher than they are. And, you know, someone might look around and be befuddled and still not understand how this can be and still won. Come on, does that really happen? Well, yes, it just happened. The past two years from. From 2021 to this year, we've had nothing but increasing mortgage rates, and we've had substantially increased home prices over that time as well. So it's happening right now. So even as people are living through it they want to tell you that the opposite things happens, which is sort of weird, but okay. One might wonder, well, wait a second, how could that possibly happen? Well, there are a few things. First of all, there are lag effects in the economy. But the second thing is we need to understand it's is when the Fed raises interest rates like they have substantially in the past year and a half to two years, what does that usually say about the economy? Well, the Fed raises rates when the economy's strong and inflation is hot and people are employed. We have even more open job positions in America today than we have people to work at those positions. So that's why they're increasing rates so much to cool down this economy. Everyone feels stable in their job and they have other job options. What happens when people feel stable in their job and stable in their income and they have savings and income like they do? What are they more likely to do? Put down roots and buy a home. So increasing mortgage rates are really a proxy for the economy. Saying that the economy is doing really well. So we look back historically the last 30 years, that's by higher rates tend to correlate with higher home prices. And to help you predict where interest rates might go if we do have this recession that just seems to be forever around the corner. People have been talking about it for a year and a half. You know, in a recession, especially the mid and late stages of a recession, that's when you see mortgage in the fed funds rate tend to fall because the economy needs the help. So really the summary is that historically you just got to look at history rather than having a hunch. Higher mortgage rate rates correlate with higher home prices. It's happening again this year.

I love you adding so much value in such a different way than Flip and I add value to our audience. You teach us so much. So thank you for sharing that information because it is counterintuitive.

Yeah. A lot of what I talk about. Yeah.

Yes, yes, it is. Very much so. And so there's sometimes that I hear you say something go, what? What'd you say, Keith? Like say that again. And then you describe it and you're like, oh, yes, yes, exactly. How could that be true? I love it. Well, we are going to start to wrap up here. I knew that we were going to go for a good amount of time because I love talking to you and you have so much value to share. But I do want to get to our commercial and then I want to get to the point where we get to real quick with Flip. We're going to have a little bit of fun with you, Keith, and get to know you on a personal level. But before we do that, you're listening to the freedom show with Flip and Danny. Our guest is Keith Warren weinhold. We will be right back after this short commercial break.

Add new income streams to your financial statement. Freedom family investments can help own property and get paid rent. Join funds and get paid interest. Wealth is well being. Own your own future. Freedom family investments get more time to focus on what matters. Learn which investing path is free for you, where to start and who to trust. Visit freedomfamilyinvestments.com all right, let's jump back in with Keith.

This is the, like, fun part of the show that I always look forward to. And I know, Flip, you got prepared for this, right?

Yeah.

Yes.

It's the oddball section, which is why I'm doing it. Yes.

All right, we're going to jump into real quick with Flip.

Yeah. So, Keith, like I had said before, this is kind of like this, that or the other. So I'm going to give you two options, one or the other. And in same theme, if you don't like either one of those, you can add a third. So like I said with, you know, cheerios or Raisin Bran. If you don't like either one, you could say lucky charms or whatever. But it's just something fun and so no pressure. All right, you ready?

All right. Yeah, let's do that.

Okay. Okay. Country music or rock and roll?

Oh, I'm a hip hop guy. That's. That's easy for me. Sorry, I couldn't take either of those two.

Two options.

Yeah, you got to have that beat for those workouts.

I love it. I love it. Well, then I probably know this answer. Art festivals or music festivals?

It's going to be music festivals for me. Yep. Yep.

And I think I know this one, too. Why do I know all these answers before you even tell me? Morning person or night owl?

Oh, yeah, you already know I'm a morning person. God, expect that metabolism.

Yep. So now being in Alaskan, I don't know the answer to this one. Flip, flops or sneakers?

Oh, it's got to be sneakers. Yeah, I can't freeze my toes off during an Alaskan winter. Yeah, this hasn't come up, but I currently live in Anchorage, Alaska.

Yeah. Yeah. All right, so, well, here we go. Vacation on a beach or vacation in the mountains?

I actually do like them both. But, yeah, for me, it's gonna be in the mountains. I Do a lot of mountaineering in Alaska. I'm looking into climbing a 20,000 foot peak in the Andes coming up soon. So yeah, it's the mountain. Yeah, the view is the best from the mountains, not the be.

All right, well let's see. How about Friends or Seinfeld?

Oh, I'm definitely a Seinfeld guy. Yeah, when that recent Friends character Matthew Perry died. Yeah, that just didn't really sadden me or resonate with me that much. But yeah, I mean, if, if Jerry or Elaine or Kramer or George, like, yeah, from Seinfeld Pass away. Yeah, that'd be a sad day. So, yeah, I'm definitely a Seinfeld kind of guy.

All right, this is, is, thank you. This, this is a good one. And we, we get mixed responses on this one. Would you rather live in 1969 or 2069?

Oh, dear. You know, I'm quite a tech forward guy. Gosh, that's a really difficult one to, to come up with. Yeah, 1969. That would be before I'm alive in, in 2069. That should be when I'm still alive. So why don't we, why don't we go with 2069? Because I know I'm going to be alive for that one. We'll stick with something, something that, that's really going to happen. I'm a tech forward guy, so, yeah, I should still be keeping up with how the world works in 2069.

All right. All right. Pineapple pizza or candy corn?

It's gonna be pineapple pizza. Yeah. Yeah. I don't do too much of the candy corn. I probably stopped eating candy corn when I was 11.

Yeah. Yes. And still for the record, no one has ever selected candy corn.

Nobody likes candy corn.

You don't have any 11 year old on the show?

Not this week. Batman or Superman?

Not too much of a superhero guy, but it's going to be Superman. You know, he shows his face, you know, he shows you who he really is.

All right, last one. Air guitar or air drums?

It's probably going to be air drums. You know, that's, you know, better for a, for a workout beat. Yeah, it's definitely got to be drums. You know, whatever keeps me moving in a workout. Yeah, it's going to be airdrops.

That's awesome. Well, thank you very much. You've accomplished the real quick with Flip.

And I have to say I actually think I knew how Keith was going to answer most of those just because I followed you so much on Facebook. But I do have a question about one of them, 2069. So what are you looking forward to in the future? What do you see happening? Go all the way to 2069. What do you think has changed for us with tech? Especially because you mentioned that, you know, you love tech so much.

Our currency, and it might be cryptocurrency based. There should be a global currency by then. The world continues to globalize. Yes, I know with the house crisis there was a short deglobalization streak, but overall our, our world economy continues to globalize. So there will be a global currency and the United nations recognizes about 193 sovereign nations. We don't have quite that many currencies, but yeah, it just doesn't make much sense to, to continue to do these conversions and continue to have these, these problems with our currency. So I think we're all going to be using one currency. Don't know if it's going to be cryptocurrency or I don't know if it's going to be a centralized global cbdc. That remains to be seen. But I am a, I am a crypto guy. I'm fairly pro bitcoin, although it does have a number of its problems. But yeah, that's where we'll be in 2069 with a global currency that there are some good things and some bad things there.

Yeah. So yeah, this is why I love your real quick flip, especially that question. Whenever somebody is, is looking to the 2069, I always love asking what you're seeing down the line. So I love this. Thank you so much for being a guest with us, Keith. I like I said before, I knew it was going to go long because there's so many things that I could talk to you about. But if people want to follow you, if they want to just get to know you, reach out to you, learn more about your course, your podcast, where would they go?

I'll share that in a moment. But I want to tell you, Flippin Danny, I'm pretty impressed with you guys. I mean you have six or I believe seven real estate centric companies now. I often think of you guys when I get my entrepreneurial wheels turning because you own and oversee all of these businesses and sometimes I think, yeah, flip and Danny can, can do, you know, this to a 100% level out or at least be able to come up to a 50% level and you know, start this other business or move my current business forward with my team. So, so I'm really impressed with what you guys do as real estate entrepreneurs. But yeah, for you, the listener or follower. If you want to learn more about me, you can always listen to me on the Get Rich education podcast. I also put together a free video course. It's me in five videos, about 12 minutes each. And what I teach you is the five ways that real estate simultaneously pays. This is just with regular buy and hold real estate. You don't have to add value or anything. Expect five simultaneous profit centers. And that's how you return. Can add up to a really high return over time. Actually use an example and add up how high of a return you can expect to get with the five ways real estate pays. And you can get that course free. And we don't try to upsell you to some other course. This is just a completely free course. You can get it@getricheducation.com course.

I love it. Thank you so much for being on the show with us today, Keith, and for everybody else. We will see you next week. Week. Bye, everybody.

Bye.

Wow.

Well, now you see why we had to cut him into two.

Yes.

You know, because Keith is better served twice. But no, that was just. I mean, after we got done recording that, we're like, how are we going to fit all that in one episode? And. And then to really see. I mean, there was a lot of good stuff in the first episode, but that one, there was some. There was some whoosh. There was some good, juicy stuff in that part, too.

Yeah. The meat of what Keith talks about and how he educates investors was really in second episode. So I was really excited to get to this one. The mo. The. My favorite part was when he talked about the property. Stop looking at properties. It's like the fourth most important thing that you should be looking at.

Yeah, he said that. I'm just going, 1, 2, 3. What's 1, 2, 3? What am I looking at?

So it's something that I said previously is that he and we. And him. He and us. I don't. I'm not sure how to say that, but we have different experiences, but we say similar things.

Yes.

So he talked about number one being you, like, right. What is it that you want? What do you want real estate to do for you? And he said number two was the market. Right. And then number three was property manager. Yes. The team. The team. So he talked about those three things, and I was like, hey, our lifestyle blueprint. Right. Our lifestyle design, where we talk to people and say, hey, figure out what you want your life to look like. Look like. And use that to determine whether you want to be an active investor or a passive investor. Right. Because so many people will go the active route, and then it'll take them two to three years for them to realize, I did not want another job. I did not think that it was going to be like this. I really now just want to sell my property, but I don't have a lot of equity because I just bought it, like, two years ago. Even Keith talked about in first episode, like, is that property that he made the mistake on? Like, he barely. After commissions and closing costs because he sold it two years later. That was literally one of those situations where he did the wrong thing. So really understanding who you are, what you want out of life, what you want your investments to do for you, answer that question first before you start anything else. So he said it a little bit differently than us.

Yes.

But we're both saying the exact same thing. Step one is defining what your goals are. What do you want your lifestyle to look like? What do you want your investment vehicles to do for you? And then decide what you're going to do? Most people will, after that exercise will go, oh, I actually want to be a passive investor. I don't want to do the active stuff. Yes. Yeah, exactly. And then step two for him was the market. And then, you know, we talked about Dayton in Cincinnati, Ohio, and you and I actually talked about this after the episode, and we're talking about these first three things going, hey, this is exactly what we say. This is so cool that he's doing. He's saying the same thing, just differently, but for the market. We love Dayton in Cincinnati, Ohio, and we moved across, you know, the states all the way from Arizona all the way to Ohio. Right. From warm, warm, warm, which I love, love, love, to a little bit of warm and a little bit of cold, which eventually I was just like, okay, I don't need the cold anymore. But talk about Dayton and Cincinnati and really why we love it, because one of the things he said about the things that you want to look for is, like, distribution centers and how that is so powerful to have in a market because you know that that's not going to go anywhere. And so that is something that you want to be looking for when you're identifying the markets that you want to invest in. So you want to. You want to touch on that a little bit.

Yeah, he talked about things, things that he likes to avoid, things that he was. He's looking for. And for those. Listen. For those of you listening and you're thinking Dayton, well, Dayton's got the largest air Force base. And I'm like, ooh. He said, no, he doesn't like, you know, military bases. But the Air Force base in Dayton is with the largest research. Research Air Force bases. So that this right path's not going anywhere. Yes. But Dayton also has a huge hospital. Not one hospital. There's a network of hospitals, and it is absolutely enormous. But it also has distribution centers because you have i75, which goes north to south from one end of the country to the other. And then you have I 70, which goes east to west from one end of the country to the other, and that cross that, those two highways crisscross right there at. In Dayton. And so there are so many distribution centers that are all around the Dayton area. Amazon keeps there. I don't know how many Amazon centers we've got in the Dayton area now.

That's right.

And there's so many world headquarters, Kroger world headquarters. There's, I guess, and there's a few. They all escape me as I'm recording this. But anyway, it's the Dayton, Cincinnati, even Columbus, that metro area, the southwest Ohio. It is, it is the. It's like the perfect storm.

Yes.

You know, and, and so plus, when we were in Arizona and we found out we could buy a house on our credit card in Ohio, you know, that was. Well, there was a little difference. You couldn't even buy a. Yeah. Anyway, so that's one of the main reasons why we want. Definitely wanted to move to Ohio.

Yeah. And I wanted to add to that, when you talk about Dayton, Cincinnati and Columbus, I think people are more familiar with Columbus and Cincinnati than they are Dayton. Oh, yeah. But in reality, cost of living is lower in Dayton than it is in Cincinnati and Columbus. So that means cost of property is lower as well. So people who are getting, you know, into the turnkey real estate game or even if you're just buying, you know, properties to burst. So, like the Equity Advantage series that we're going to be talking about, if you're buying properties like that, you're going to find the best deals at the lowest cost and the best cash flow in the Dayton area. Whereas you're getting into Cincinnati and Columbus like it's a different ball game. So even our investor relations team member, CJ Lives in Columbus but buys property in Dayton.

Yeah, yeah. Because, yeah, the prices might be lower, but you're actually making more money on the properties in Dayton than you would be in Columbus or Cincinnati. So it's, you know, you think, well, the prices are lower. So I'm not Going to make as much money. It's, it's, it's, it's because the rent in Dayton is very close. Not the same, but very close to the same rent as in Cincinnati. But the prices of the houses are considerably different. So just take that with you.

Yeah, yeah. So number one is knowing what your goals are. So we hit that one. Number two was knowing the market, so we hit that one and knowing. And number three was a team. So even at the end of this podcast, he was, you know, mentioning, hey man, I've been watching you guys, you know, for years now and just watching how you've grown and what you've done. And we vertically integrated for a reason. Right. Because of what he just said. The team, Team is the most critical part. Right. When you buy a property, when you have a property that's being managed, your real relationship is with the team in that property management company and knowing who that property management, who they are. We always say, hey, we're not perfect. In fact, we brought property management in way, way earlier than we thought we were going to. And it's because we outsourced to five other property managers that were not doing a good job. And we're like, we're like, you know what, we could at least do a better job than that. So we brought it in and we've had our challenges as we've grown, but we've told every single person is it said, hey, if you're with us, just know that we're human. We're building out this, this arm because we wanted to make sure we had control over it. We wanted to make sure that if you called us and there was a problem, we could fix it. When it's with a third party manager, we can't help. We can't go out there and like, you know, get into the property to fix a repair for you. And so it's those things that, like, really are, we're passionate about because we're so dedicated to aligning our interests with our investors. And in order to align our interests with our investors, we had to start taking control of every component of the real estate deal through that turnkey process, right? From being able to buy it and control how many deals we get in the door to being able to renovate it and control the contractors and the quality of work that they were putting out, to be able to control the property management and our ability to jump in and help if there is a problem. Because, look, it's real estate, there's going to be problems. Like, and if you, if you think that this is a cakewalk. You're not familiar with real estate yet. It's not a cakewalk. People who want the cakewalk are the passive investors who say, let me invest in a fund or be a private money lender or, or a master note investor. They want the cakewalk. They don't want anything to do with the trials and tribulations that real estate brings. Yeah, but those are the things that you want to look for in your team. You really want to get to know who they are and you really want to find somebody who is vertically integrated. So whether you're buying in, in our area or some other area, you want to find a company that has all the pieces to the puzzle in under one roof, essentially, so that they can go in and be able to control every facet of it. It also lowers your costs. Right, because we are able to go and run down the hall and knock on somebody's door and we're able to work together in ways that other companies can't because they're third parties and they all have their own policies and procedures about how, what can be done and how it can be done. Whereas we just say, hey, you know, let's just jump in and help. Let's just solve the problem and solve it fast. So the team is such, such a powerful component. And then he says, boom. Now number four.

Oh yeah, the property.

Now look at the property, now look at the investment opportunity. Once you've covered your goals, you've covered your market, you've covered your team, now what do you want to invest? Because you've answered the right questions before, getting to the point where you say okay. And he even pointed out that most people start at number four and they go backwards and that is the wrong way to go. So I'm so glad that we talk about that as well. I'm so excited that we got to have him on and all the other stuff. I mean, we could sit here and talk about inflation, triple crown, we could be talking about the mortgage interest rates that he was. You could just keep going on and on.

Yeah. The only thing I'm going to say, well, first of all, with the property being forth, you know, he talked about it doesn't have to be pretty. There is a degree that it does have to be. Yeah, it does have.

You want the renter.

Yeah, exactly. It does have to be a degree of pretty. But the biggest importance is the numbers. It is, it is very non emotional. It's all numbers. Do the numbers work? And then that, that tells you. But the inflation Triple Crown, right?

Yes.

Yeah.

Yeah.

I want to call it the triple Play for some reason. I don't know why. But anyway, the inflation Triple Crown and the. When he talks about the mortgage rates, what I love about Keith is that I think he knew that he was talking to me because he dumbed it down so far that even I understood it. That's what I love. I love, I just love about when he talks. And that's why I like his podcast because it's, it's, it's. He makes it simple to understand, you know, and he'll throw a couple, you know, you know, 25 cent words in there. But, but it's not to, you know, it's not to make him look smart or whatever. It's because, you know, they just have to. But I just like. Yeah, he explains it so that everyone can understand it. And I, I really like, really like that.

Yeah. So we hope you enjoyed this episode. We always like to end our episodes with talking about what opportunities that we have right now. So again, I want to keep on mentioning Cottonwood Townhomes because we are at the end of 2023. By the time this airs, I am not 100% for sure we will have any openings left, but I encourage you to call and find out because it is the last opportunity that we have before 2023 for you to get tax deductions. So we were just talking with a friend last week and we were talking about tax de. And we said, hey, we've got Cottonwood Townhome right now. As soon as you get back, you need to call your CPA, find out what your 2023 tax burden is going to look like because you're going to want to invest in this because it has a 30 to 50% tax write off. So that means for every $100,000 that you invest, 30 to $50,000 is a potential tax write off. So there are some things that you want to be able to talk specifically to your CPA about to understand this a little bit better. If you have questions about it, call CJ and Ben, go to chatwithfreedom.com, get on their calendar and start talking about, about Cottonwood. Let them know, hey, I'm actually calling you specifically for tax benefits because not only are you going to get a good high return, it's a 12% blended return, but you also have 30 to $50,000 of tax write offs per. $100,000 is the estimate. So that's one of the most powerful ways for you to build wealth. I can't say enough how important it is for you guys to jump on the phone with C.J. and Ben and start talking about that and start getting educated about it. Because if you wanted to know how the 1% of the 1% makes their money, this is one of the ways they do it, is they legally know how to not have to pay taxes, but they legally know how to reduce their tax burden. This is one of those ways. And then also we are just recording a, a webinar with JR and he was presenting, I think he's got six Equity Advantage opportunities again, by the time this airs. I do not know if those are available, but I bet if the six that he talked about today are not available, I bet he'll have another grouping of Equity Advantage Advantage deals available. And those are deals that essentially we are offering up our team to you to be able to invest in something. So let's just say we've got a property that we were going to buy for our turnkey portfolio. We were going to pay, let's just guess, it's $50,000. I don't know. And the rehab is going to be $30,000, whatever that looks like. Instead of us buying it for 50 and doing the rehab for 30, we're actually going to allow you to buy it and maybe we'll, we're going to see sell it to you for like $55,000 as an example. That's how we make money. We're going to make a little bit of money by actually giving it to you. And that allows us sometimes to not have to buy 20 deals when maybe we're tapped out. Like our renovations team has already got enough or maybe we just didn't need the extra property. At this point in time, it allows our investors to be able to get some equity and be able to have our team do the renovation, do the property management. If you want to flip it, our brokerage can be able to list it for you. You are going to, to get a much bigger profit off of that property because you bought it this way, you kind of jumped the line is exactly what we say. You jump the line and you buy it. Because we have these six properties right now and they are, they are like, okay, we can actually put them in our Equity Advantage series. And if they don't sell in our Equity Advantage series, we're just going to plop them and put them in our turnkey program. So we're going to buy them anyway. This just allows us to sell other properties, properties quicker than we might take them. All the Way through our turnkey property property. So when we talk about win wins, it's a win for us to be able to sell something faster. It's a win for you to be able to take the equity that we would have taken if we would have taken it all the way to the finish line as a turnkey property and did the funding ourselves. So we've got hard money lending, lending for you so we can take care of the financing. We've got the renovation team for you, we've got the property management team, we've got the brokerage and you're going to get the profit because you did it that way. Is there a little bit more work involved in turnkey? The answer answer is yes. So just know that this is more of an active investor type thing now. You're not having to do the rehab. We're actually giving you all of our resources and that is not something accompanies that typically do. Typically, if we've got all the resources, we're going to want the profit. Right. But sometimes we just have so many properties that we are willing to go ahead and allow people to jump the line and take some of the properties off our hands at the very beginning before we throw it into our turnkey pipeline. So those are great opportunities. If you want to learn more about that again, go to chatwithfreedom.com you're going to want to scroll, scroll down and jump on the calendar of JR Jr will educate you about these. He'll explain to you what the profit looks like, what the purchase price is, what the rehab looks like. He will connect you with the hard money lender. In 2024, we will be, we will be able to do the hard money lending for you in house. But right now we'll connect you with a hard money lender that is willing to lend on these properties. So anything that I missed there?

No, no. And for those seasoned investors out there that are sitting there going, hey, that sounds like the burger method, you are right, that is exactly what that is. But we just call it the Equity Advantage series.

That's right. All right, well, thank you guys so much for joining us. I hope you probably listened to this episode a few times because there was so much value and gold nuggets in there. It was really powerful. And we are so excited to be able to introduce Keith to you, but we're gonna call it quits for now.

That's all she wrote.

All right, and we're gonna see you next Wednesday. Bye, everybody.

Bye. Nothing on this show should be considered specific personal or professional advice, please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions and information on the show are not guaranteed. All investment strategies have the potential for profit or loss.