Short interview ("Coffee Talk") between Mark J. Podolsky and Keith Weinhold focused on a practical real-estate investing tactic for beginners: purchase a 4‑plex using an FHA loan with 3.5% down, live in one unit for at least 12 months, rent the other three, and leverage tenant rent, bank financing, and tax benefits. Keith states an FHA minimum FICO of 620, frames the 3.5% down as 28:1 leverage (reciprocal of 3.5%), and gives a numerical example: a 5% change in the building × 28 = 140% rate of return on the down payment after one year. The clip ends with links to getricheducation.com (Keith's podcast) and thelandgeek.com (Mark's site) and an invitation to download Mark's passive-income materials.
Questions this video answers
3.5% down
12 months
620 minimum FICO score
28:1 (the reciprocal of 3.5%)
He says a 5% change in the building × 28 = 140% return on the down payment after one year
Chapters
Hey, it's Mark Podolski, the land Geek with thelandgeek.com and let's have a virtual cup of coffee together and hey Keith, how are you?
Hey, I'm feeling pretty good. I'll be even better when I'm caffeinated.
You know what's interesting is I haven't properly introduced you to the Lange community. This is Keith Weinhold, who is one of the top has one of the top investing talk shows in the United States, the Get Rich Education podcast. Keith, come on. Really? Get Rich Education podcast? You sound like a late night infomercial. Really? All right, so tell us, how are you gonna make us rich?
Well, I'm gonna make people rich by instilling in them that they don't just want to have their own money working for them. You know, a lot of people go to work to earn money and they really learn a lot about how work works. They don't learn anything about how money works yet money is the only reason they go to work.
Alright, so I know this is going to be a quick tip, a quick resource, something Keith, give our people something to learn more. Like, you know, if you were just starting out, what would be the Keith Weinhold Get Rich education Like ultimate tip?
The ultimate tip that's very specific and actionable is to start out how I started out and how I mentor beginning real estate investors. Now buy a 4 Plex with a 3.5% down payment in an FHA loan. You only need to live there 12 months to qualify for financing. You only had to have a minimum FICO score of 620. And you live in one unit, rent out the other three, you have instant income and you have 28 to 1 leverage.
Okay, explain to me what you mean by 28 to 1 leverage.
Sure. Well, with the 3.5% down payment, this gets a little bit mathematical. But if you take the reciprocal of that, you get 28.
Okay.
Okay, so with 5% depreciation in the building, for example, after one year take your 5%, multiply it by 28 and that's the rate of return on your down payment after one year.
Wow, five times 28.
What is that?
140.
140. And you might have a free place to live as well. So you put a roof over your head as well as made other people's money work for you. So you don't want to concern yourself with working for money. You even want to think beyond having your money work for you, have other people's money work for you. When you get into residential real estate investing and you buy a fourplex. You. You make other people's money work for you three ways at the same time. And you're thinking, wait, is that possible? Is that even legal? And if it is, would it be ethical? Yes. You use other people's money three ways at the same time. You use the tenant's money for the monthly rent income.
Right.
You use the bank's money to create the leverage.
Right.
And you use the government's money because the government gives you generous tax incentives like depreciation and deductions. If you invest in revenue real estate, you've instantly made other people's money work for you three ways at the same time. And you put a roof over your head.
Keith, this is genius. Alright, well, listen, I want to thank you. If you guys want to learn more about Keith, please go to. Is it getricheducation.com?
Yeah, I'm the host of the weekly Get Rich education podcast. I would start with the podcast.
Okay, so go to the podcast. If you want to learn more about me, Please go to www.thelandgeek.com. download for free that passive income blueprint and get the ebook how to Avoid the three Fatal Land Buy Mistakes. Keith Weinhold, Phenomenal tip. I really appreciate it. And we'll see everybody next time. Thanks for having a virtual cup of coffee with me.
Hey, thanks for having me. It was nice to share that.
