Keith Weinhold's Blueprint from 4-Plex to Financial Freedom!

Summary

In this insightful episode of the Freedom Show, hosts Flip and Danny interview Keith Weinhold, a successful real estate investor and podcast host. Keith shares his journey from his first investment in a fourplex to his strategy of prioritizing physical fitness over finances. He emphasizes the importance of market choice over property aesthetics and the value of relationship capital in business. The episode also discusses the Freedom Family Investments' current offerings, including Cottonwood Town Homes and the Equity Advantage Series, highlighting the benefits of tax depreciation and potential for higher returns.

Takeaways

• 🏠 Investing in real estate doesn't have to be emotional; profitability doesn't always correlate with a property's aesthetics.
• 🤝 Building relationship capital is crucial for long-term success, as it involves investing in people and relationships for mutual benefits.
• 💼 The approach to business should be about creating a win-win situation where both parties can gain something, even if it means each losing a little.
• 💡 Keith Winhold's investing mantra focuses on the return on time, aiming for more than just income - the ultimate goal is living a great life.
• 📈 Keith's concept of real estate paying five ways includes appreciation, cash flow, loan amortization, tax benefits, and inflation profit.
• 🏢 Keith has been investing in real estate for over 20 years and emphasizes the importance of geography, time, and financial freedom.
• 🏠 Starting in real estate can be as simple as buying a fourplex with an FHA loan, living in one unit, and renting out the others.
• 📚 Learning from mistakes is vital in real estate investing; Keith shares his experience of buying a property that didn't cash flow well due to poor market choice.
• 💪 Prioritizing physical fitness over finances is Keith's personal superpower, as he believes in taking care of one's body more than their wallet.
• 🌟 Success leaves clues, and by surrounding oneself with successful people, one can learn from their experiences and strategies to build wealth.

Q & A

What is the significance of the phrase 'relationship capital' in the context of the podcast discussion?

The phrase 'relationship capital' refers to the value of the investments made in relationships with others. It emphasizes the importance of building long-term relationships based on mutual benefit and trust, which can significantly contribute to one's personal and business growth.

How does the speaker describe the concept of 'flipping' in real estate?

The speaker describes 'flipping' as a short-term investment strategy in real estate where properties are bought, renovated, and then sold quickly for a profit. However, the speaker's approach is more focused on long-term investments for cash flow and building relationship capital.

What are the three types of freedom that the guest, Keith, believes are important?

Keith believes that the three important types of freedom are time freedom, place freedom, and financial freedom. Time freedom refers to the ability to set one's own schedule, place freedom is about being geographically untethered, and financial freedom is the independence achieved through having enough residual income.

How did Keith start his journey in real estate investing?

Keith started his real estate investing journey by purchasing a fourplex in Anchorage, Alaska, where he lived in one unit and rented out the other three. This was made possible through an FHA loan, which requires a relatively small down payment and doesn't necessarily need high credit scores.

What was the main lesson Keith learned from his experience with his first out-of-state property?

Keith learned that the market is more important than the property itself. Despite the property looking pretty and being cheap, it didn't cash flow well because it wasn't in a good market. This taught him not to let emotions or aesthetics influence investment decisions.

How does Keith prioritize physical fitness over finances?

Keith prioritizes physical fitness over finances because he believes that maintaining his body is more important and challenging than managing his finances. He feels that taking care of his physical health positively impacts his overall well-being and ability to handle business and investing challenges.

What is the 'equity advantage series' mentioned in the podcast?

The 'equity advantage series' is an investment opportunity where investors can buy properties before they are rehabbed, allowing them to gain equity. The podcast hosts' vertically integrated companies assist with the rehab, tenanting, and flipping processes, offering investors a chance to get involved and potentially earn a higher return.

What is the significance of the 1031 tax-deferred exchange in Keith's investment strategy?

The 1031 tax-deferred exchange allowed Keith to sell his fourplex after 11 years and reinvest the equity into an 11-plex without paying capital gains tax. This strategy enabled him to grow his investment portfolio while deferring taxes, a common practice among real estate investors to maximize wealth.

How does the guest's experience with his first out-of-state property influence his current investment decisions?

The guest's experience with his first out-of-state property, which didn't perform as expected, taught him the importance of market research and listening to local property managers' advice. This lesson has influenced his current investment decisions, making him more cautious and focused on the market's potential rather than just the property's appearance or price.

What advice does Keith give for new real estate investors?

Keith advises new real estate investors to start with a fourplex, live in one unit and rent out the others. He recommends using an FHA loan if possible and emphasizes the importance of not letting emotions drive investment decisions. He also suggests prioritizing the market over the property itself for long-term success.

What is the Cottonwood Town Homes investment opportunity mentioned at the end of the podcast?

Cottonwood Town Homes is the last and only syndication for 2023 offered by the podcast hosts. It provides investors with the opportunity to receive tax benefits, including 30 to 50% bonus depreciation on their investment. This means investors could see a significant tax benefit if they invest before the end of the year.

Outlines

00:00

🏠 Real Estate Investing and Relationship Capital

The speaker discusses the importance of investing in real estate without letting emotions dictate decisions. They emphasize that a property's aesthetics are less important than its profitability, especially for long-term rentals. The speaker also highlights the significance of 'relationship capital,' the investment in relationships that can lead to mutual benefits and long-term success. They share their experience of building a strong relationship with Keith, a podcaster who has contributed to their business growth, and discuss the concept of negotiating win-win situations in business.

05:01

🤝 The Value of Character and Long-Term Relationships

The speaker delves deeper into the concept of relationship capital, explaining how character is revealed through interactions and decisions, particularly in business. They share personal experiences of working with individuals who prioritize short-term gains over long-term relationships. The speaker also discusses their approach to business, which involves ensuring that all parties involved in a deal benefit. They mention their excitement about having Keith on their show, highlighting the growth of their relationship and the trust built over the years.

10:03

📈 Keith's Background and Real Estate Philosophy

The speaker introduces Keith, a successful real estate investor and host of a top investing podcast. Keith's background is detailed, including his concept of real estate paying in five ways: appreciation, cash flow, loan amortization, tax benefits, and inflation profiting. His book, 'Seven Money Myths,' is mentioned, along with his role on the Forbes Real Estate Council. Keith's investment philosophy is outlined, emphasizing the importance of time, arbitrage, asset protection, and leveraging other people's money. His experience in real estate investing is highlighted, with a focus on Buy and Hold strategies for cash flow.

15:03

🏞️ Freedom Through Real Estate Investing

Keith shares his personal journey of achieving freedom through real estate investing. He explains how he transitioned from a day job to full-time investing, focusing on the three types of freedom: time, place, and financial. Keith's interest in geography and his strategy of investing in out-of-state properties managed by local property managers are discussed. He shares how this approach has allowed him to travel and pursue his passion for mountaineering while maintaining a steady income from his investments.

20:05

🏡 Starting with a Fourplex: Lessons and Strategies

Keith recounts his initial steps in real estate investing, starting with purchasing a fourplex with the help of an FHA loan. He shares practical advice for beginners looking to invest in real estate, emphasizing the importance of choosing the right property and understanding the market. Keith discusses his experience with a property that failed to provide the expected returns, teaching him valuable lessons about the significance of market research and the role of a reliable property manager. He concludes with his strategy of using a 1031 tax-deferred exchange to upgrade his investment property.

25:05

💪 Prioritizing Fitness Over Finances

Keith talks about his superpower—prioritizing physical fitness over financial pursuits. He believes that while money can be easily made, maintaining fitness is more challenging and thus more valuable. Keith shares his personal fitness journey, including his love for cross-country skiing and his commitment to exercising daily. He emphasizes the importance of taking care of one's body and how it impacts overall well-being, even in the face of business challenges.

30:05

🏋️‍♂️ Balancing Fitness and Business

The conversation continues with Keith discussing his fitness routine and how it has evolved over time. He shares his experience of running daily for over a year and the impact it had on his health, leading to a hip replacement surgery. Keith and the hosts reflect on the importance of morning exercise and how it contributes to a higher metabolic rate throughout the day. They also touch on the benefits of outdoor activities and the role of fitness in maintaining a positive mindset, especially during challenging times in business.

35:07

🤑 Investing Opportunities with Freedom Family Investments

The hosts discuss current investment opportunities with Freedom Family Investments, focusing on the Cottonwood Town Homes syndication for tax benefits and the Equity Advantage Series for those seeking higher returns. They emphasize the importance of acting before the end of the year to take advantage of bonus depreciation and provide contact information for further inquiries. The episode concludes with a reminder that the advice given should not be considered professional and encourages consulting with experts for personalized advice.

Keywords

💡Investing

Investing refers to the act of allocating resources, usually money, with the expectation of generating an profit or return over time. In the context of the video, investing is discussed in relation to real estate and the importance of not letting emotions influence investment decisions. It is highlighted that profitability does not necessarily correlate with the aesthetic appeal of a property, especially for long-term rentals.

💡Relationship Capital

Relationship capital refers to the value of the relationships and networks one builds with others. It is the investment made in developing and maintaining these relationships, which can lead to mutual benefits and trust. In the video, the concept is emphasized as crucial for long-term success, as it can lead to collaborative opportunities and stronger business connections.

💡Cash Flow

Cash flow is the movement of money into and out of a business or investment. Positive cash flow is essential for the sustainability and growth of any enterprise. In the context of the video, the speakers emphasize the importance of properties generating a good cash flow, which is sometimes hindered by properties being too attractive or located in too desirable of neighborhoods.

💡Real Estate Investing

Real estate investing involves the purchase, holding, management, rental, or sale of property for profit. It can range from buying and holding properties for long-term income to flipping houses for quick profits. The video discusses various aspects of real estate investing, including the different strategies and the importance of choosing the right market over the property itself.

💡Podcast

A podcast is a digital audio or video series available on the Internet for downloading to a computer or mobile device. Podcasts cover a wide range of topics and can be hosted by individuals or groups. In the video, Keith is a podcast host and has built a large audience through his show, which focuses on investing and wealth-building strategies.

💡Flip and Danny

Flip and Danny are the hosts of the Freedom Show and are also real estate investors and entrepreneurs. They discuss their experiences, strategies, and insights related to investing, business, and personal development. In the video, they interview Keith and share their own journey and strategies in real estate investing.

💡Tax Benefits

Tax benefits refer to the advantages or reductions in tax liability that one can gain from certain investments or activities. In the context of the video, tax benefits are discussed in relation to real estate investments, where certain strategies can lead to significant tax advantages for the investor.

💡Property Management

Property management involves the operation, control, and oversight of real estate properties. This can include tasks such as tenant screening, rent collection, maintenance, and repairs. In the video, the concept is discussed in relation to Keith's investment strategy, where he relies on property managers to oversee his out-of-state investments.

💡Financial Education

Financial education refers to the teaching and learning of financial concepts, such as budgeting, saving, investing, and understanding the economy. It aims to improve individuals' ability to make informed decisions about their finances. In the video, Keith emphasizes the importance of financial education as a key principle in his investing philosophy.

💡Buy and Hold

A buy and hold strategy in real estate investing involves purchasing properties and holding onto them for a long period of time to benefit from potential appreciation in value and the rental income they generate. This approach is contrasted with strategies like flipping properties for quick profits.

Highlights

Investing in real estate is not about emotions; it's about profitability and cash flow.

The correlation between a property's attractiveness and its profitability for long-term rentals is often negative.

Keith Winhold, a successful real estate investor and podcast host, emphasizes the importance of relationship capital in business.

Relationship capital refers to the investment in other people and relationships, which is crucial for long-term success.

Winhold's investing mantra is 'What's your return on time?' focusing on living a great life as the ultimate goal.

He started his real estate journey with a fourplex in Anchorage, Alaska, and now owns income-producing real estate in the US and Latin America.

Winhold's experience directly investing in income-producing property spans over 20 years.

Wealth is not acquired by trading time for money or simply putting one's money to work, but by ethically employing other people's money (OPM).

Winhold's first real estate investment was a fourplex where he lived in one unit and rented out the others.

He emphasizes the importance of not falling in love with a property because its appearance does not equate to profitability.

Winhold shares his 'get real' moment, where he learned the hard way that the market is more important than the property itself.

He sold his first out-of-state property after failing to keep it occupied, despite it being a pretty brick home.

Physical fitness is prioritized over finances for Winhold, as he believes taking care of one's body is more important than taking care of one's wallet.

Winhold's superpower is his motivation for fitness, which he maintains independently without needing a personal trainer.

He shares his strategy of using a 1031 tax-deferred exchange to upgrade from a fourplex to an 11plex.

The freedom story of Keith Winhold highlights the influence of his friends' investment choices on his own path to real estate success.

Winhold's top three freedoms are time freedom, place freedom (geography freedom), and financial freedom (income freedom).

He emphasizes the importance of not getting emotional about investments and focusing on facts and numbers.

Winhold's approach to real estate investing involves buying and holding properties for cash flow, appreciation, and tax benefits.

He shares actionable advice for beginners looking to start in real estate, recommending an FHA loan for a fourplex as a starting point.

Winhold's journey from a day job to full-time real estate investing is marked by his pursuit of financial independence and geographic freedom.

Transcripts

investing is not about emotions if I and

my wife are going to live in the brick

home ourselves oh okay well maybe it

matters that it looks pretty but it does

not have to look pretty to be profitable

in fact there's almost a negative

correlation there for long-term rentals

if a property looks too pretty and it's

in too good of a neighborhood it often

doesn't cash flow

either hey fliping Danny here welcome to

the freedom show show show show

show welcome to another exciting episode

of the freedom show uh I'm super excited

uh about this podcast I've been this one

was I had a little star around it around

this date and underlined and exclamation

pointed I mean because I was super

excited about uh doing this recording

yeah yeah so uh today we're gonna be

talking with Keith winhold and the

reason that we're so excited about

talking with Keith is that um we have

known him for about five years um he has

got uh he one of the first podcasters

out there he has um the a large large

audience that you know just really

really love him whenever we are featured

on his podcast which we have been

featured every single year for five

years now um whenever we are featured

like we get phone calls and we get

emails and we get you know um just most

wonderful people that we get to talk to

and build relationships with um come

from Keith's podcast and we've just

really grown our Rel reltionship with

him because um of the quality of people

that he engages and that he attracts um

and that's just been really really

important to us because uh there's

something called relationship Capital um

that people don't always use that phrase

necessarily but it really means um the

investment that you put into other

people and into relationships and I

think that's really really important

when you're building something longterm

um there's you know investors there's

people there's business owners there's

entrepreneurs they're are very

shortsighted and uh they'll think of

themselves first they'll want to

negotiate and win um which means that

somebody else has to lose if you're

winning um uh as opposed to finding a

way for both parties to equally have um

some good and some bad that's when you

know you've really negotiated well um we

each lost a little bit but we each

gained a little bit and it was really

kind of an even playing field right and

that's how flip and I run our business

yes is making sure hey we we aren't

running a not for-profit business this

isn't a charity we have to make money to

be able to pay for our overhead to be

able to create the income and live the

lives that we want we desire to be able

to give back in the way that we want to

give back um but that doesn't mean that

we want the people to engage with us and

interact with us and and our in our

Network we don't want them to lose so we

find ways that we can align our

interests to be able to serve what we

are trying to create here and serve what

the investors are creating in their

lives as well um and that's really what

relationship capital is all about is

that long-term thinking of how can we do

something that's going to accomplish our

goals and then how can we surround

ourselves with people like us and create

a scenario where we're all winning

together and we're all achieving

together um and we're all lishing

together and um sometimes when there is

an sometimes when there's losses we've

been known to take the losses ourselves

because we are the ones taking the risk

we're the ones with the knowledge and

the skills and the experience and other

people are trusting us and that

knowledge skills and experience and we

are making a profit off of that

knowledge skills and experience and so

when something bad happens um we have to

dat always just taken that loss because

we want to say hey you can trust us um

we've built this company in a way that

we can do volume and be able to mitigate

the risks of it and that all goes with

relationship Capital yep um and so Keith

um uh this relationship of five years um

has been an investment for us into him

it's been an investment of for him into

us um and it has just grown and grown

and grown and when you have um this type

of mindset of this is longterm this is

something that I want to um be able to

give to others and they're going to give

back to me and we're going to find a way

to accomplish things together um those

relationships turn into the most

wonderful um uh I don't want to call it

a thing but

wonderful um it's what builds our future

right it's it's the relationships that

build our future because they're the

ones um that uh create that that giving

and receiving and everybody's okay with

I'm okay with receiving help from Keith

he's okay with receiving help from us um

and then and we love giving to each

other so that we can um just add value

to each other's lives so I think that

that's really important and I think um

it goes to the character piece you and I

talk about all the time right if you

work with somebody long enough um and if

you ask the right questions before you

get into a relationship with somebody

you're going to start to see their

character by the way that they engage

with you um by the way that they have

treated situations deals um you know

when they are shortsighted and they say

oh it's okay that my private money

lender get didn't get paid um that's

short-sided right whereas we'll take the

loss and our private lender will always

get paid 100% of the time that's the

character of I understand this is a

long-term relationship and I understand

that me losing money right now um builds

the trust with this relationship and

we'll keep on doing deals together

forever um so I love talking about

relationship capital and the investment

that you have in other people being one

of the most important things and Keith

is one of those people um and uh I'm

just excited to be able to have his have

him on the show and I don't know how

much flip you interact with Keith um

personally because I know many times I'm

the one on the podcast um but I know

that you follow them on social media

like you've had some interactions with

them so yeah this is sort of book ending

for me because I was on the first one uh

you know and I guess now it's been three

different locations now that we've been

on podcast with with with uh Keith um

and you know and as you were talking I

was thinking about all of the people

that we've been doing with and all the

people that we've been interacting with

and business with and and you know some

people come in and fall off right and

some people we do one deal with and we

never see them again uh some people we

do maybe three or four deals and we

never see them again Keith has always

been there and it's like you know they

always what's that line the cream Rises

to the top yes right uh you know for

gosh it's been five years now I remember

where we were when we recorded the first

episode you know um I was as scared then

as I as I am recording with him you know

today uh you know because he it's Keith

weall uh but uh you know and and uh but

but he's still there you know he's

always there he's he's not falling off

uh because he's that person and you you

talk about you know the relationship

capital and and you know being around

someone like him and you know there's we

have a few other people that have been

around with us for that long but it's a

very short list yes that we've known and

still do business with that for that

long um and uh but he definitely one of

the he's at the top uh you know and and

it's uh uh but regarding you know yeah

you do a lot of the podcast with them so

I haven't had to do the last two or

three which you know hey that's fine

with me um but uh Hey welcome to flip

and Danny but today's just Danny um uh

but uh but yeah Noah so I'm super

excited uh to to be on this one and uh

you know because it's gosh he's just a

wealth of information he is and uh um

also he's one of the few people that has

really seen us from the very beginning

um because we've known him for around

five years I can't remember the date or

the year of our very first podcast but

um our our companies are they're past

their sixth anniversary probably coming

up on the seventh anniversary so he's

really at the beginning of the formation

of maybe two two maybe three of our

companies by the time that we met him

and started um being featured on his

podcast and now we're up to you know

launching our seventh company um so he's

he he's seen the entire growth of it

right yeah we were just we yeah yeah we

were just we right right and he's

actually one of our investors like he he

not only has us on on our his podcast

because he likes us he he um uh he loves

what we've built and he believes in us

as people um and has has us on his

podcast but um so much that he put his

money where his mouth is right he says

not only are are these guys on my

podcast not only have I um had this

relationship um with them but I invest

in their power fund um and so I love

those types of relationships where um we

we not only collaborate and help each

other um but we invest with each other

and that's where that trust level is um

so I'm really really excited to have him

on this show today um so is there

anything else that you want to talk

about before we jump in with Keith no

let's roll all right let's

[Music]

go you're tuned in to the freedom show

we are in the studio having a

conversation we're really excited to

share with you today's guest is Keith

winhold welcome to the show Keith yes

welcome flip it's an honor to be here

yes absolutely we're so excited to be

talking to you today and before we get

too far into it flip is going to get

into your bio so our audience can learn

a little bit more about

you so Keith created and hosts one of

America's top investing shows the

get-rich education podcast with five

plus million listener downloads to date

that's amazing Keith originated the

concept that real estate pays five ways

appreciation cash flow loan amortization

tax benefits and inflation profiting he

authored the international best-selling

book Seven money myths that are killing

your wealth potential Keith has served

on the Forbes Real Estate Council since

2017 his articles are published in

Forbes markets Insider Business Insider

The Epic Times and International

business times Keith's investing Mantra

is what's your return on time one

doesn't simply want more income the

ultimate goal is to live a great life as

the outcome Keith focuses on the

following key principles of financial

education and real estate literacy

abundance Arbitrage asset protection

fiat currency disposal inflation hedging

leverage passive cash flow precious

metals and velocity of money it began

with an Anchorage Alaska fourplex and

I've seen that pair picture actually on

Facebook by yes uh Keith Keith lived in

one unit and rented the other three

since 2002 he has owned income producing

real estate in the United States and

Latin America he is primarily a Buy and

Hold investor for cash flow Class C

multif Family Apartments Class B single

family home rentals and productive

agricultural Parcels Keith has 20 years

of experience directly investing in

income producing property wealth is not

acquired by trading time for money

everyone knows that wealth is not not

acquired simply by putting one's money

to work either few know that one

acquires wealth by ethically employing

other people's money

OPM do you want to clearly learn how

real estate creates more wealth than

anything else without having to be a

landlord Keith tells you how welcome to

the show Keith oh thanks again hey

appreciate that great bio yes um you

have been somebody that we've had a

relationship with uh for years now we

have been so excited to have you on the

show um when we did season two of the

freedom show um it was the very first

time that we started having guests and

so we started creating our guest list

and we were like okay who do we want to

have on the show and you were in the top

um um of that list because of um you

know how we've gotten to know you and

just uh how you've helped us on our

journey um through different ideas even

um starting this podcast I had I told

you at one point in time I said hey

Keith I think we're getting ready to

start a podcast and you are just

phenomenal you've been doing it for

years you have um so many great

listeners you know can you give me some

advice and so you wrote a a great email

of you know some tips uh for us as we

got started um and it was just a

phenomenal and so we are really really

excited to um when we bring on guests

it's really our Network it's the people

um that we have worked with you know

four years and we tell our audience you

to just say hey these aren't just guests

that we're bringing on that we don't

know these are actually the people that

we work with and talk to and get advice

from um or do deals with um so we're

really excited to have you yeah and now

here I am creating content for one of

your episodes talking as you interview

me so that's great and yeah I think we

go back almost five years now since we

met yes yeah it's been phenomenal and

you know what I'm excited about and so

we're going to jump into this a little

bit is because it's never been um you

know it's never been turned around where

I'm getting to interview you and flip is

getting to do you know some some of this

interviewing as well and so we get to

hear your story and be able to share it

you know with our audience so I'd love

to start off with um your freedom story

so this is something that we talk about

a lot that's why it's called the freedom

show um and there's many types of

freedom and and everybody's Freedom

tends to be different we had one guess

that where it was emotional Freedom that

was one that I was like oh I never even

thought of that one for flip and I it's

time uh freedom and geography freedom is

what is really important to us um so I'd

love for you to share your freedom story

and maybe the types of freedoms that are

really important to

you sure well like you said I started

young so I've been investing in real

estate more than 20 years now we're not

just talking about you know buying some

passive reach Real Estate Investment

Trust or something like that we're

talking about directly investing in real

estate and I quit my day job seven years

ago exactly seven years ago because I

because I had enough residual income

from my real estate activities and we

can go into just how you The Listener

and viewer can do that yourself in my

unique route to get there but one of my

interests is geography I'm a real

geography guy um one of my degrees is in

geography um I was actually a pretty

easy major just a bachelor's in

geography but yes this gives me freedom

of place you know I really think of

Freedom as three different types you

have a time Freedom you have Place

freedom and you have Financial Freedom

all three of those are equally important

but once you get the Financial Freedom

since I don't need to show up in my 8x10

bu blue cubicle at my employer which was

a state do anymore I'm able to set up my

own schedule and not just travel

anywhere but really it's a lot of those

little things if I want to go to the car

wash to get my car wash well when I used

to work a day job you know I usually had

to show up on like a Saturday and wait

in line for 40 minutes or something like

that now I can go Tuesday at 1:30 p.m.

and you know cut cut the line because

there there is no line there so that's

part of the time freedom I have and then

the place Freedom what I do is I invest

in real estate all of the real estate I

invest in is out of state it's out of my

local area where I have property

managers that oversee say eight

properties in this US city and six

properties in this US city and the

managers manage it for me and therefore

I am just the asset manager over my

property managers I get a monthly email

statement from them whether they're in

Dallas or whether they're in Tampa and

and that's my life and I get income in

my bank account automatically collected

by those property managers and deposited

into my account most of these properties

I have never even seen so that's how I

got freedom and those are some of the

things that it's allowed me to do and

that includes travel I am a geography

guy I like to do a lot of mountaineering

from the Andes to Alaska and this allows

me to do that I'm untethered from an

employer geographically so again those

are really the three types of Freedom

time Freedom income freedom and place

Freedom you really want all three yes I

love that um those are the top three

that we talk about as well um and I want

to ask you there's many ways to invest

there's many ways to build wealth uh for

us real estate was an obvious choice for

many real estate um they're not even

quite sure how to get started um so how

did you get familiar with real estate

how did you get started how did you

decide that real estate was The Wealth

building vehicle for you well it's

because of my friends it really goes

back to the old Jim ran quote which

you've almost certainly heard but it's

so preent here and that is you are the

average of the five people that you

spend the most time with take your five

cloes CL friends take their morals and

values they're probably pretty close to

your morals and values take their formal

educational attainment level take the

way that they

dress take the time that they go to bed

at night you know if you average the

five that's about how you are if you

want to change yourself change your five

just a great quote from the legendary

business philosopher Jim ran but I had

found that two of my five closest

friends about 20 years ago flip and

Danny what they had had done is they

made their first ever home first ever

property of any kind a fourplex building

where they lived in one unit and run it

out the other three so because this is

two of my five it sort of took on this

context of normaly to me it didn't seem

scary and I learned and I did indeed

follow through and make my first ever

property of any kind a fourplex building

like flip mentioned in the bio there

where I lived in one unit and rounded

out the other three and this is

something very acable for you the

listener and viewer here if you want to

get started in real estate with a bang

you can do exactly what I did this

program still exists with an FHA loan

you can buy a single family home duplex

Triplex or fourplex a fourplex is the

biggest property that you can do it with

so I really recommend that you do it

with a fourplex for economies of scale

if you live in one unit for at least 12

months if you can make a 3 and a half%

down payment I didn't have a lot of

money I was just a work a day job

employee at a state do but I think a lot

of people can come up with a 3 and a

half% down payment and part of that or

all of it might even be able to be a

gift and then the third thing you need

besides that 12-month owner rocket pency

period in one of the units and the three

and a half% down payment is just a

minimum credit score of

580 that's all you need yes that's all

you need now there are some things that

you need to avoid and properties that

you need to avoid but that's how you can

start with a bang live in one unit rent

out the other and get the appreciation

and the tax benefits on an entire

building that's exactly how I began you

probably saw a picture of it it was a

$295,000 modest fourplex and the rents

in each door were $725 I can still

remember that that is a great actionable

way for you to get started and if you

have Veterans Administration benefits

via benefits it's 0% down a 12month

owner occupancy period and your credit

score doesn't even have to be that good

so that's how I began and that's how you

can still get started with a bang today

with an FHA loan on a fourplex building

I love that you just gave very

actionable um advice yes right because

very many times we talk at such a high

level that people aren't sure where to

get started um so when I'm on the phone

with investors I get you know where do I

start which path is right for me who do

I trust and Keith here as a guest on our

show um just gave you one of the ways to

get started um and a very actionable way

uh if you want to do that fourplex so um

just curious Keith um when you got this

forx did you do the rehab or did you

hire

contractors I did it myself I didn't

know how to do it I'm still not a good

Handyman by by Nature at all um people

must think I'm a good handyman since I

own all this real estate in multiple

States but I'm really not I just know

how to identify a good deal and then put

the people in place in order to manage

it but yes I did some of the rehab

myself actually one of my two friends

that had also made their first ever

property of fourplex building I still

remember he showed me how to remove the

vinyl and replace it with hardwood uh

plank flooring um knock out a pony wall

and add this plank flooring but like

that's the most sophisticated type of

rehab that I've ever done it is simple

to figure out but I really needed

someone to come in the door and and show

me how to do it so it actually didn't

take too much rehab it definitely wasn't

any sort of bur strategy or Fix and Flip

It was really a a Buy and Hold property

I love it and so last question on this

topic because I love this part of

getting to know you um do you still own

the fourplex or did you sell it no I

sold that fourplex after holding it for

11 years because I wanted to take the

equity from it the return from home

equity or property Equity is always zero

and by 2013 I was aware of that so what

I did is a 1031 tax deferred exchange

from that fourplex building into an 11px

building adding little or none of my own

money I just extracted the equity from a

smaller property because it had grown

and I use that as a 20% down payment on

an

11px nice I love it what a great

strategy thank you for sharing that

story um okay so I want to uh uh go into

what we call get real um segment this is

really where um we tell the about tell

people about the challenges that we have

whether it's business or real estate um

there's always a roller coaster ride of

learning um having something happen and

and failing and then you know realizing

that that was something that you could

learn from and now you can be better so

I know that you have this amazing

podcast um and I would call it a call

you a very successful businessman as a

result of what you've grown um but

you're also a real estate investor so

I'm not sure where you want to go with

this but I'd love for you to share some

type of get real moment whether it's

business or real estate or even your

personal life um that will just allow

others to kind of understand that hey

it's not always rainbows and sunshine we

all go through challenges and and we all

eventually get over

them yeah gosh things have gone so well

with the getor education podcast I don't

even know if there's a a get real moment

there although I still have my small

problems with it from time to time

Shirley

I would say as an

investor I made an early mistake the

first time I ever bought property across

state lines it was in Crowley Texas

which is just south of Fort Worth

there's nothing wrong with the Crowley

Market but I got so enamored of buying

this place my first ever out ofate

TurnKey property you know why you know

the mistake I made it looked pretty just

because it looked pretty and it was

cheap and it looked pretty it was a

brick single family home I paid 153k for

it despite the fact that before I bought

it the property manager that I was going

to use in that market told me hey they

don't think that's a good property for

whatever reason and I never found out

why but for whatever reason we don't

think we're going to be able to keep

that one occupied I bought it anyway I

was like

153k even though there was someone with

local market knowledge right there that

told me not to buy it because they

couldn't keep it rented I just thought

it's only 153k for a brick property all

buy that I could never keep it occupied

for whatever reason it was actually a

failure my first ever out of state turn

key property and I sold it because I

couldn't keep it occupied now I did sell

it for 165k a couple years later just a

little bit more than what I bought it

for um but after aging commissions and

anything I didn't make any gain but you

know it wasn't a complete tragedy but

really the lesson that I got from this

is the market is more important than the

property and your team especially that

property man that's actually more

important than the property itself so

you know I got a hard lesson you know I

ended up losing my time on that deal and

I didn't make any money so I wouldn't

get emotional about it the best thing is

not about emotions if I and my wife were

going to live in the brick home

ourselves oh okay well maybe it matters

that it looks pretty but it does not

have to look pretty to be profitable in

fact there's almost a negative

correlation there for long-term rentals

if a property looks too pretty and it's

in too good of a neighborhood it often

does N Cash Flow either so those are

some of the lessons that I learn on that

and really just about every one of my

TurnKey rentals I bought since then have

been winners Danny and flip oh I love

that so I love the lessons learned

because that's really what helps people

um move past the mistake right is when

we can share what we what happened what

we learned so that now they don't have

to say make the same mistake so thank

you so muching should be about facts and

numbers not emotions I might have

emotions in my my own home but yeah that

has no place in my investment so yeah

that was the the lesson learned yeah

don't fall in love with a pretty

property pretty does not matter in a

long-term rental that's right Prett does

not rent yeah yeah just because it's

pretty doesn't mean it cash

flows that's awesome yep I love it okay

so um now I'd like to really dig into

your what I like to call your superpower

um so um I say superpower because it

tends to be either a passion um uh of

somebody or uh the career the very

successful career somebody has done so

when we um asked you about this Keith

you actually uh sent us a note um that

physical fitness is prioritized over

finances and I thought this was really

really interesting because I follow you

on social media um and I watch your

YouTube videos I listen to your podcasts

I'm on Facebook most often so I what I

really really love is when I get to see

you um you know running up a mountain or

you just posted like it's ski

season um I see your workout videos

there was one it was late at night you

were in your garage doing this one and

you were balancing I was like I think I

commented I was like oh I totally want

to try that now that I saw you do it um

so I love that you said this um I'd love

for you to dig into that a little bit

more and maybe um let us know like how

you

began yeah well I mean I've been doing

CrossCountry ski races uh since I was n

years old so you know my father my

parents always instilled in me the

importance of physical fitness and I

don't think that everyone has to do

things the way that I do them but to me

in the United States where we live money

is falling out of the sky like it it

it's easy to be successful in bu I mean

you almost have to use an umbrella to

keep the dollars from hitting you

they're just always you know falling

down out of the sky so in in my opinion

like finances is easy but Fitness is

difficult and I want to to prioritize

Fitness because I'd rather take care of

my own body than take care of my wallet

I mean my wallet can come after my body

but I'm only ever going to have one body

and so does you the viewer or listener

so that's why I prioritize things like I

do and I like to do it in the morning

because that way it's done and it also

keeps your metabolic rate higher

throughout the day if you exercise early

in the morning and I yeah as you you've

seen I do some pretty intense exercise

so if you ask me what my superpower is I

guess I do have this motivation that

comes from within I don't need to have a

personal trainer that pushes me I can

just find the energy myself but yeah

it's true people know me and look to me

for you know real estate investing

guidance but in my personal life I

prioritize Fitness first and then

finances second it doesn't mean that

anyone else has to do it that way that's

what works for me and you know I found

that when I have business or investing

problems I still feel good about myself

because I've still got this uh same body

that I have but you know when my

business is going bad if I didn't feel

good about my body either gosh I might

really fall into you know a really sad

mood or something like that so yeah I I

prioritize Fitness over finances and

those are just a few of the the reasons

why I love that I especially love the do

it in the morning um flip and I have

found and obviously we don't work out as

much as you do everybody can see our

soft fluffy shells that we are trying to

get rid of um bit by bit by being you

know having healthier eating and and

good practices but um have found if we

do not work out in the morning then it's

likely not get going to get done at all

um so above and beyond that metabolic

rate and keeping it high it gets pushed

off by business or something else and

then um you know it gets away from us

and and then it here we are today um so

I think for me that was probably your

biggest tip is just reminding us hey

prioritize this first because your body

is the one body you have in this

lifetime and it's important um you know

get in there take care of it and then

you can do business and let the money

fall all over yes try to keep it from

hitting you in the head yes oh you guys

look great in fact I remember a few

years ago flip did something like what

run at least a mile per day for an

entire year 365 days yeah ended up going

it was close to a year and a half uh

close to almost almost two years um but

then this actually started what for for

anyone that's following me any recently

uh that actually started the the really

forcing me with hip pain and so I

actually had to stop running uh because

I had hip pain and I I kept saying n

it's fine I rub some dirt on it and uh

uh you know and now we're down here in

Florida and Danny finally said you know

you need to really get that checked out

and I did and the doctor said we need to

get you in for surgery right away um so

I'm mean I'm in the hip replacement

capital of the world down here in

Florida uh so I had a really good I had

a really good doctor so I think he did

like 12 that day I was I was number two

um you know so uh but yeah so I've

unfortunately had to stop doing that but

I yeah I used to love doing that every

day it was it was and I would do that

different times of the day but based

upon the work day but I I always love

the ones right in the morning because

you're out in the fresh air you know no

one else is up yet I I used to love

that yeah having that hip work done yeah

that takes some of the wind out of your

your Fitness over finances

prioritization there yeah I can walk

fast now

he can and and we love the outdoors yeah

it is we do love the outdoors like you

that's why I love watching your Facebook

post because it's just so fun to get

outside and get some fresh air um so

anyways okay we could talk about this

all day long because we love it oh man

and that is part one of two with Keith

winhold that's just I

I that's all I'm going to say yeah head

exploding for those of you that are not

watching and only listen in at home my

head just exploded uh you know Keith is

is uh gosh I'm so glad we put this into

two uh you know part part one and part

two because this is that that was

jam-packed uh and that was just part one

yeah so what I really love about this

episode was when he was talking about

his freedom story um I love hearing

people's freedom story and we've known

Keith for a while um as everybody knows

by now after hearing um that episode uh

but uh his story of why he chose real

estate was probably one of the most

powerful things um I felt about his

freedom story um because there's lots of

things that you can do for investing um

and you know there's stocks in crypto

and there's real estate and there's just

many different uh ways that you can go

down um different paths and he mentioned

um his friends right and he talked about

you know the people that you surround

yourself with you become the average of

you know the the top five people that

you uh end up surrounding yourself with

and I think I think that's such a

powerful statement because you and I

look at our Network all the time and we

look at how we've gotten as far as we

have like we look back and go whoa like

look at what we built like um it's just

crazy and um I'm so very proud that we

have been able to do it because we keep

leveling up on who we are surrounding

ourselves with we continue investing in

ourselves and in masterminds and so you

know Keith saying this is why I chose it

um and then he went and did you know uh

that fourplex and he lived in one side

and then rented out the other ones and

he even bought a fourplex that didn't

even need a whole lot of rehab right um

so he was able to rent it out without

having to do a whole lot and that was

able to launch him on his investing

Journey now that path isn't perfect for

everybody right um some people decide

that they want to go um down that path

only to realize later that that wasn't

the path that um that that they truly

intended because they did things

backwards and we talk about that a lot

you and I um and so I think that that

was really really powerful to hear um

even his three top three freedoms are

the same three that we talk about where

it's um uh time Freedom geography

Freedom which he calls place Freedom um

and Financial Freedom which is income

Freedom um so I love when he's talking

and I go oh my goodness we say that too

and and we we say it a little bit

differently because we have different

paths we have different experiences that

we're tapping into um but we're saying

the same thing and when you continually

hear people um saying similar things you

start to go hey success leaves Clues

right um because all these people who

are at this level that I want to be at

they're saying you know this is how they

did it and this is how they did it and

sometimes somebody um like Keith will

say different nuggets that you and I

don't share right he has he has tapped

into different skill sets and different

knowledge um and expertise that we don't

have um but some of the experience is

exactly the same experience that we have

and we're so we're we're all telling the

same same stories just in a different

way um that's what really excited me

about his freedom story what about you

well you know I thought it was funny cuz

he said two of his friends were doing it

so you know hey well I'll just do it

yeah you know he didn't even think so

well that's hard I can't do that that's

hard it's a fourplex yeah who starts

with a fourplex you know he didn't have

any of those thoughts because two of his

friends were doing it yeah oh sure I'll

do it y you know and and so it makes me

think gosh where are those two friends

for for us 10 20 years ago um but uh you

know so I love that you know because and

while plus he was working at the do

Department of Transportation that'll

make you want to go

in going to real estate investing right

away um can you imagine knowing Keith

when he was just a

kid he'd be so much fun no kid no kid I

mean he still isun yeah yeah yeah um

running up the mountains um but but uh

uh yeah so I mean that just blew me away

you know just he had two buddies or two

friends that did it and so that's what

he did you know it's house attacking you

know uh and that's just so that's and

this is you know he's the second person

that I've known that's built a uh and I

don't know the other person I just know

their story that that built a real

estate Empire starting with just a for

black you know that's how they started

and they they and they went from there

and they turned that into I mean he even

talked about uh um you know how he

turned that into

uh1 into a 11 unit uh and that's what

you do and then you 1030 that one into a

4 unit and then so on yes um so yeah he

did it he did it right and uh that's

just I loved hearing that story because

I didn't know I I mean I'd he always

heard about the fourplex because he puts

pictures on Facebook every so often uh

but I'd not heard the you know the

backstory behind it and actually when I

had asked him about the for flex and if

he had sold it I knew the answer but I

just wanted the audience to kind of

understand you know what he did and how

he um you know started because those

three questions that we always get asked

um Keith had a different way of starting

right and so um getting to hear those

stories about how people start on their

journey and and to see that they have

succeeded and they've made it you know

to the top of their Mountain I mean he

does he travels everywhere and he's out

every single morning like um just doing

something whether it's in his garage

because he's traveling or um whatever

like I just love watching his his

journey um and he does really you know

prioritize Health right and fitness um

and it's always very very inspiring to

see somebody successful um his business

is a podcast um his investment vehicle

is real estate um his personal passion

is Fitness um and it's just really neat

to see somebody's passions you know come

alive through our relationship and

through social media and things like

that um but I also really liked his get

real um segment where he talked about

the market and how important the market

was um because I think that was really

really something that hit home for us

when we were in Arizona and decided to

make the move to Ohio right and really

understanding that that Ohio was the

right market for what we wanted to do

and we fell in love with TurnKey um a

real estate we fell in love with cash

flow we already loved cash flow and we

were doing sub two wraps at the time um

but sub two wraps um you could pretty

much do everywhere but the the legal

consequences and all the changes in the

law with Dodd Frank act um and us going

ah we don't really want to be a case

study in a court case so um what do we

want to do now and then exploring that

and getting to know the Ohio market and

making the move um from Arizona down

here and and living there for what how

much five or six years I can't even

remember before we moved to Florida oh

right we're there six years yeah six

years um so uh love the Dayton in in

Cincinnati um Ohio market uh for all of

the reasons that um uh we discussed in

in the episode itself um so really

really excited about hearing that story

and uh just how many synergies that we

heard and how many similarities of our

stories that we heard so um part one I

can't believe that we yes yes so there

there's um I think a couple podcasts now

where we've just taken so much time with

the guest because there was so much that

we wanted to share and talk about um

that we're having to divide it into um

two parts so this is part one of two

we're super excited about it um before

we let you go we're going to talk about

what's going on um with the freedom

family Investments um and some

opportunities that we have uh we are

closing out the year uh with Cottonwood

Town Homes um it is the last and only

syndication for 2023 where you're going

to get some tax benefits so you're going

to see anywhere from 30 to 50% of bonus

depreciation on this investment what

that means is if you invest $100,000 um

into this investment you are going to

see a 30 to $50,000 tax benefit um from

it you're going to want to talk to our

investor relations team as to what that

means for you everybody's tax situation

is different but this is one of the ways

that the wealthy get wealthier when you

want to know what the 1% of the 1% is

doing they are taking as as much

advantage of tax benefits as they can

so one of our friends actually um we

just talked to uh last week and we said

call your CPA right now ask him what

your 2023 tax burden is going to look

like because I promise you this

investment is going to allow you to

reduce it and you won't have to pay as

many uh as much taxes but you have to

invest before the end of 2023 so um make

sure that you are contacting our team

right away um we have uh I'm not even

sure how much we have right around

$500,000 left um to be able to um have

investors jump in and be able to take

advantage of that bonus depreciation the

other that I wanted wanted to mention is

the equity Advantage Series it's very

much what Keith did like where he bought

a fourplex and lived in it the equity

Advantage Series you don't have to live

in it but you are going to be able to

buy a property um where it's pretty much

a done for you rental or done for you

flip um buy us but you actually get the

equity so TurnKey is true done for you

we're going to do it all you're going to

buy it after it's done after it's tened

you're getting the cash flow already the

equity Advantage allows you to buy it at

the beginning so before we rehab it you

can buy it here gain some of that Equity

we'll still help you rehab it we'll

still help you tenant it we'll still

help you flip it on the market if you

want to do that um and you're going to

gain a lot of cash flow still without

doing the work is it more work than a

turnkey rental yes 100% it is% um we

won't lie to you there so um it is more

work you are more involved you're also

going to get a bigger reward that's how

that works is uh if you're actually

going to get involved um then you're

going to get you know some of that

Equity out um without The Sweat Right

which is really crazy about how we have

taken our vertically integrated

companies and allowed you to be able to

use it so that you can buy a deal get

some equity and then still use our team

to get the entire work done and still

grab that Equity piece um so um Jr is

going to be the person that can educate

you about what properties we have

available um what that looks in terms of

how much it's going to cost what the

loan might look like we do have a hard

money lender um that you can use to be

able to to finance these properties we

will be a hard money lender in 2024 so

that you can Finance them through us um

but we have the financing for you we

have the renovation team for you we have

the property management team for you we

have The Brokerage team for you so if

you're looking for um a deal that you

can get some um um higher cash value you

don't mind putting in more time um for

that higher uh return um then talk to Jr

and just go to chat with freedom.com and

scroll down and you are going to see U

Ben CJ Jr and if you would like to talk

about Cottonwood Town Homes private

money lending syndication or funds

please jump on the calendar of Ben or CJ

if you would like to talk about TurnKey

rental properties or Equity Advantage

Series then you're going to want to talk

to Jr specifically also Lauren can help

you with TurnKey but if you want to talk

about the equity Advantage definitely

jump on the phone with JR he's the one

that's got access to those specific

properties um but I think that's it for

this particular episode part one all

right part one is in the books and we

are going to see you next

Wednesday

[Music]

bye nothing on this show should be

considered specific personal or

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Financial or business professional for

individualized advice opinions and

information on the show are not

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have the potential for profit or loss