Get Rich Education
Real Estate Investing with Keith Weinhold
Podcast
Episodes
Listen, download, subscribe
America's Frightening Homeless Problem, Crazy Investing Manias—Tulip Bulbs, Beanie Babies
• 53 minMore homeless people have been created due to the housing supply crisis. Homelessness is up 11% since last year, per the WSJ. The opioid crisis, consumer inflation, and NIMBYism have contributed too. California has the most homelessness on both a total and per capita basis. States with higher housing costs have more homeless people. I share our poll results: “Should we pay to house the homeless?” Are you a NIMBY? We find out today. We can increase housing supply with rezoning, construction training, and lower mortgage rates. The cycle of investor emotions led to wild investing manias. It was tulip bulbs in the 1600s Netherlands and Beanie Babies in the 1990s United States. I discuss exactly why “buy low, sell high” is more difficult than it sounds. Timestamps: The correlation between homelessness and the housing market [00:00:00] Discusses the relationship between the housing market and the increasing problem of homelessness in America. Investing manias and lessons from history [00:00:00] Explores the phenomenon of investing manias and the lessons that can be learned from historical examples. The tight inventory market conditions and potential solutions [00:04:56] Lawrence Yun, Chief Economist of the National Association of Realtors, discusses the tight housing market conditions and suggests tax incentives to increase housing supply. Timestamp 1 [00:10:32] Affordability of moving to different cities and the proposal of a tax incentive for real estate investors. Timestamp 2 [00:11:49] Discussion on the housing supply crisis, mortgage rates, and the homeless population in the US. Timestamp 3 [00:14:14] Increase in homelessness in America, reasons behind it, and the correlation between housing prices and homelessness rates. The impact of high density housing on quality of life and home value [00:21:12] Discussion on the potential negative effects of building high density housing near single family homes, including reduced home value, increased traffic and noise, and loss of nearby open space. Alternative solutions to increase housing supply and reduce homelessness [00:23:30] Exploration of alternative measures to address homelessness, such as trade training for the homeless and relaxing excessive safety requirements in home building. Giving real change to the homeless [00:25:50] Encouragement to give directly to homeless shelters or soup kitchens instead of giving small change to individuals on the street, with the concept of "give real change not small change" explained. Note: The timestamps provided are approximate and may vary slightly depending on the podcast episode. The Origins of Tulip Mania [00:31:37] Tulips were introduced to Europe in the 1500s and became a luxury item for the affluent. The cultivation of tulips locally in the Netherlands led to a flourishing business sector. The Tulip Bubble [00:32:55] By 1634, tulip mania had swept through the Netherlands, with the demand for tulip bulbs exceeding supply. Prices reached exorbitant levels, and futures contracts were being bought and sold. Lessons from Tulip Mania [00:37:53] Tulip mania serves as a model for financial bubbles, with similar cycles observed in other speculative assets like beanie babies, baseball cards, NFTs, and stocks. It highlights the dangers of excess, greed, and speculation without tangible value. The cycle of investor emotions [00:44:32] Explanation of the different stages of investor emotions, from optimism to panic, in relation to stock market investing. The peak of the stock market [00:46:43] Discussion on the peak of the stock market being the point of maximum financial risk and the difficulty of selling at the right time. Real estate as a stable investment [00:51:56] Comparison of real estate investment to speculative bubbles, highlighting the stability and income stream provided by real estate. Explains how the integration of HOA (Homeowners Association) helps maintain uniformity and cleanliness in the rental property investing world. Details about the upcoming real estate event [00:38:31] Promotion of a live event where listeners can learn about new construction fourplexes and have their questions answered in real time. Resources mentioned: Show Notes: www.GetRichEducation.com/463 Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments. You get paid first: Text ‘FAMILY’ to 66866 Will you please leave a review for the show? I’d be grateful. Search “how to leave an Apple Podcasts review” Top Properties & Providers: GREmarketplace.com GRE Free Investment Coaching: GREmarketplace.com/Coach Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE’ to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Keith’s personal Instagram: @keithweinhold Complete episode transcript: Welcome to Get Rich Education. I’m your host, Keith Weinhold. America’s homeless problem has become FRIGHTENING. I describe how that correlates… with the housing market. Then, investing MANIAS. What drives people to spend more for one tulip flower bulb than they would for an entire luxury home? And lessons you can learn that’ll benefit you the rest of your life from other manias throughout history. All today, on Get Rich Education. ___________ Welcome to GRE! From Seaford, DE to Carmel-by-the-Sea, CA and across 188 nations worldwide, you’re listening to one of America’s longest-running and most listened to shows on real estate investing. Along with plenty of ongoing hot takes on wealth mindset and the real estate economy. I’m your host, Keith Weinhold. See, the crash in the SUPPLY of available American homes is bad and it isn’t just creating more upward prices, it’s a contributor to homelessness. Let’s talk about some of the drivers of homelessness, understand the problem a little more, how many homeless people ARE there in America, and then… what can we do about it? As you’ll soon see, one prominent real estate industry influencer actually suggests that you actually SELL your rental single family homes in order to help serve the homeless. More on that shortly. Also, I have the results from a GRE Instagram Poll. The poll question is: “Should we pay to HOUSE the homeless?” And the answers that you - the GRE listeners gave… actually surprised me. I’ll give you those super-interesting poll results later, because I have more to explain there. But first, what IS a homeless person? Let’s define it. I think most anyone knows that since it’s a person without a home, it’s thought of as living on the street. Really, then, that person might not be homeless but “houseless” in a literal sense. Even if they live in a tent under a bridge, that is then, their home. Though it might be INADEQUATE housing. More accurately, the unsheltered or undersheltered population could be more apropos. Then there’s vagrancy. A vagrant is defined as a person without a settled home OR regular work… who wanders from place to place and lives by begging. So vagrants are PART of the homeless population then. This all helps DEFINE what we’re discussing. Now, the lack of available American housing supply - especially the affordable segment - is OBVIOUSLY a big contributor to homelessness. For example, anymore, how many builders even construct a new-build entry-level home for $200 or 250K? Practically nobody… anywhere. And just how bad is the supply problem now? Well, the NAR has been tracking housing supply since 1982 and it just hit its lowest level ever this summer - EVER - and that’s in 40+ years of tracking. That’s one reason why just last week, it was announced that Warren Buffett is making a big bet on housing by investing in homebuilders. Now to keep consistent with the same stats I’ve been reporting to you for you, to update that, again 1-and-a-half million available homes is the baseline supply. That’s the long-term “normal” per the FRED Active listing count. And through last month, it’s still under 650,000. That is STILL a housing SUPPLY crash of 57% from its peak of 1 ½ million. I want you & I to listen to this upcoming piece together. This recent interview with NAR Chief Economist Lawrence Yun is from the 8th of this month. Yes, HE is the one that basically wants you to sell your SF rental properties. And he makes his case for an inducement to get you to do this. (Ha!) He’s not proposing anything COMPLETELY ludicrous. It’s REALLY interesting. Listen closely for that. This about 5 minutes in length and there’s a lot of material here within this clip - a nutrient dense piece, so I’ve got SO much to say about this when I come back to comment. [Yun clip] Yeah, the NAR Chief Economist there talking about how, much like I have for years, great opportunity is in the Midwest and Southeastern parts of the US. With this greater ability for people to work from anywhere, when people move in from the pricy coasts, it’s sooo affordable to them. Moving from Manhattan to Cincinnati feels incredibly affordable. Moving from San Francisco to St. Louis feels like you’ve upgraded from serfdom to a kingdom. Moving from Boston to Jacksonville feels like a total life makeover. That’s why, here at GRE, we’re focused on properties in those INbound destinations. Before I continue, especially for those outside the US, I know that it seems a little odd that Ohio and Indiana are in what we call the Midwest when they’re actually in the northeastern quadrant of the nation. But the fact that they ARE midwestern states is rooted in history and
Get Rich Education RSS Feed
