Wealth Formula Podcast

As you know, I am pretty passionate about entrepreneurship and investing. Specifically, I tend to be dogmatic on investing in real assets. Am I right? I don’t know. Obviously I think so.

That said, there are plenty of rational, smart human beings that are investing in a more traditional fashion. Are they wrong? Obviously I think so. But…that’s me basing my own opinion after thoroughly educating myself.

Whatever you decide is your personal investment philosophy, it is critical for you to understand what the other side is thinking. You never learn anything if you only listen to people with whom you agree.

That’s why I wanted to talk to Dr. Jim Dahle, he is a practicing board certified emergency medicine doctor and the editor of whitecoatinvestor.com which is a very popular financial blog focused on financial education for physicians. In essence, he is doing what I am doing, specifically for doctors. That said, there are two major differences. My show focuses on all high paid professionals and entrepreneurs, not just doctors. The other, more pronounced difference, is that his views of investing are more traditional than mine. As you all know by now, I am a hard asset investor and I personally refer to stocks, bonds, and mutual funds collectively as “garbage.” That, by no means, is an attack on Jim. He and I just don’t see things the same way.

In fact, Jim offers a great deal of financial education on his site that is really worth checking out and are certainly in “neutral territory”. You can’t have too much financial education. You, personally, need to figure out what you believe in and take action. Both Jim and I strongly believe that financial education and investing is critical to your future.

I have a great deal of respect for Jim and what he is doing. His mission is a noble one…to help the over-educated but financially ignorant. That’s something I would like to do as well. So…in the spirit of presenting both sides of the coin, this podcast has 2 parts. First, I interview Jim, and then you will hear me get interviewed by Pete Mathew of The Meaningful Money Podcast.

I hope you enjoy it!

It has been a crazy couple weeks for me. As some of you know, I am aggressively pursuing some deals in a couple of great US multifamily markets and I’m getting really close to getting some under contract. That’s good news for me and for my investors! If that sounds interesting to you, make sure you sign up for my investor club on wealthformula.com and I can tell you about what I’m up to…only caveat is that you have to be an accredited investor.

Anyway, I’m not writing to you to sell you anything. I brought up what I am doing because I want you to know that I practice what I preach. There are a lot of gurus out there who like to talk about real estate and other real asset investing, but all they do is talk. I want you to know that I walk the walk as well.

That brings me to this week’s guest on wealth formula podcast. Many of you will know him already. He is the host of “Get Rich Education”, Keith Weinhold. His show similar to mine in many ways and we often share the same guests by accident! That said, he’s been at this a little bit longer and has a pretty different background than me. What we do share, however, is that Keith also walks the walk. He is an active real estate investor himself.

The other thing I like about Keith and you will discover on this show is that Keith has great integrity and believes, like me, in the concept of abundance. Keith is a giver and because of that he has become “wealthy”. In fact, after we recorded this show, the first thing he asked me is “how can I help you with your podcast?” He then spent 30 minutes talking shop with me.

Keith is a guy who I can now say that I know like and trust and I think you will too. I hope you enjoy the show!

Real asset investing is not limited to the rich. In fact, if you look at the crowdfunding movement on the internet, you can now invest in just about anything you want. Crowdfunding laws in recent years were intended to rectify the “unfair advantage” that the more affluent had to investments with greater profit potential.

But… don’t forget, the opportunities to invest in real assets were there even before the crowdfunding frenzy. Anyone who could afford it could buy themselves a house and rent it out. As you know, residential real estate is my favorite investing asset class. The problem most people have with this idea is that they do not want to be landlords. Sure that rental house might be a great investment and a good source of cashflow but who wants to worry about tenants, toilets, and termites? Certainly not me…in fact, that’s one of the reasons I chose apartment buildings instead. I felt it was easier to get management for larger assets. In most cases, I still believe that to be true.

However, I’ve been talking to more and more investors who have turned to “turn-key” models for investing in single family homes and have had great success with this model. Most of them claim they are getting double digit returns. The idea is that the company not only provides you with deal flow, but it also helps you through the acquisition process with contracts and due diligence and then hooks you up with a quality property manger.

I have no experience with this model myself but wanted to learn more so I contacted my trusted friend and fellow podcaster, Lane Kawaoka of Simple Passive Cashflow. Lane has sort of become the turn-key guy. Anyway, turns out that Lane liked the model so much he got involved in the business himself with a guy named Jonathan Mednick who he bought a bunch houses from down South.

In this episode of Wealth Formula Podcast, you’re going to hear from both of them and you and I are going to learn together! Hope you enjoy the show.

No one wants to get old but it’s better than the alternative. Imagine getting to that age when you are unable to take care of yourself and you start feeling like a burden on your kids. What do you do?

These days, most people in this situation end up at an assisted living facility. When you think of assisted living facility, what kinds of images come to mind? Personally, I think of a sterile Soviet Union style building built in the 1960s with a faint smell of urine covered up with a flower scented cleaning agent. I imagine anonymous cafeterias and care givers who don’t know your name and who are just there punching the clock.

But maybe it doesn’t have to be that way. In most states, a growing asset class known as group homes are becoming more prevalent. Instead of that institutional vision, now imagine a regular house in a regular old neighborhood. Imagine that you know all the others living in that house and all the caregivers know you by name. Maybe that would cut down on the high rates of depression seen in the elderly right?

Now, imagine owning one or two or three of these and making 30 percent return on investment. Imagine owning something like this where the demographic for your customers is exploding.

The opportunities out there are endless but on this week’s episode of Wealth Formula Podcast, we discuss this lucrative, feel good business with Gene Guarino of Residential Assisted Living Academy.

Buck