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Welcome to Get Rich Education with Keith Weinhold, giving you information and ideas on the investment that has turned more ordinary people into millionaires and billionaires than

anything else and can provide you with more wealth and happiness than you ever thought possible.

Now, here's your host, investor, entrepreneur, business owner, and educator Keith Weinhold.

Welcome to GRE, Get Ritz Education episode 142.

Hi, I'm your host, Keith Weinhold, back on track to provide you with another

wealth building week.

This is the investing show that is simultaneously educational, actionable, and inspirational. Well, looking back here, the year was

2007, and I had just purchased my second fourplex building, going from four units up to eight

units, expanding the portfolio. I purchased it for $530,000, a $530k purchase with a monthly rent income of $5,200 from the

four units, almost meeting the 1% rule there, and I was feeling pretty good about my new buy.

Each townhouse-style unit had two stories and everyone had their own garage, but soon things would turn bad.

Now, I sure thought it was odd that before I got to the closing table on this deal, that the

mortgage company that I thought I was going to close with suddenly went poof, gone, imploded.

So after a delay in the closing, I ended up finishing up with a different mortgage

company and I was told that I was awfully fortunate to get that 4plex closed at all because loans

soon might not be available to anybody any longer. So I felt lucky to get my 10% down, non-owner-occupied, 6 and 7-8%

interest rate, interest only, with no mortgage insurance loan done at all. But after closing,

I soon had an uneasy feeling that, well, geez, if no one can get loans anymore, first of all, I don't

know what's going on here.

And secondly, that is going to kill demand for real estate and therefore kill the value of

this building that I had just bought.

...