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Real Estate Investing with Keith Weinhold
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Inflation is an Immoral Force
• 40 minGet our free real estate course and newsletter: GRE Letter Learn why inflation helps dishonest people and harms honest ones. I use an example of a honeymaker. Both new-build SFRs and apartment units are being shrinkflated. Landlords skimpflate by: delayed maintenance, transferring the electric bill to the tenant, adding a surcharge for storage locker use, firing the doorman, charging to park beneath the carport, or not replacing an old fridge. Instead, raising the rent is the ethical thing to do. To comfortably afford the typical US home, it took $59K in 2020 and $107K today. In a sense, you’re both richer and poorer than your grandfather. Learn why investing through IRAs is a poor strategy. I compare RE market conditions from when I bought my first property in 2002 with 2024’s conditions. Timestamps: Inflation and Immorality (00:01:51) Explanation of how inflation impacts the economy and the moral dilemma it creates for producers. Housing Affordability (00:04:26) Discussion on the impact of inflation on home affordability and the consequences for renters and homeowners. Rental Affordability and Apartment Shrinkflation (00:05:47) Insights into the shrinking size of new apartment units and the implications for rental affordability. Impact on Middle Class and Homeownership (00:08:29) Analysis of how inflation affects the middle class and the changing dynamics of homeownership. Affordability by Metro Area (00:11:09) Breakdown of home affordability in different metro areas and its correlation with real estate cash flow. Impact of Inflation on Wealth and Society (00:17:11) Discussion on the implications of inflation on wealth accumulation and its societal effects. Conventional Finance and IRAs (00:24:45) Brief mention of conventional investment vehicles like 401(k) and Roth IRA in relation to real estate investing. Conventional Wisdom (00:26:36) Challenges conventional financial wisdom, emphasizing real estate investment over traditional saving and budgeting. Roth IRA vs. Traditional IRA (00:27:45) Discusses the limitations and drawbacks of Roth IRAs and traditional IRAs in relation to increasing income and real estate investment. Market Timing (00:28:59) Emphasizes the importance of having a sound investment strategy and taking advantage of market conditions, using personal experience as an example. Real Estate Market Comparison (00:30:14) Compares the real estate market conditions in 2002 to those in the mid-2020s, highlighting changes in pros, neutrals, and cons. Investment Uncertainty (00:32:53) Addresses the uncertainty of investment and the need to adapt to shifting market conditions, emphasizing the importance of taking what the market offers. Property Highlights (00:34:13) Details three available investment properties in different locations, providing information on purchase price, rent, and potential cash flow. Long-Term Investment Strategy (00:36:55) Advises on the ideal holding period for rental properties and the benefits of new build properties in the current market cycle. New Build vs. Resale Properties (00:38:02) Discusses the advantages of new build properties and the potential impact of declining home price premiums on resale properties. Investment Coach Contact (00:39:12) Encourages listeners to contact investment coaches for assistance in exploring potential income properties. Disclaimer (00:39:42) Provides a disclaimer regarding the information presented in the podcast and advises consulting professionals for personalized advice. Resources mentioned: Show Page: GetRichEducation.com/491 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com 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.
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