342: Ken McElroy - Inflation, Mortgage Rates, and Home Prices
Get Rich Education
Keith Weinhold
4.3 • 602 Ratings
🗓️ 26 April 2021
⏱️ 41 minutes
🧾️ Download transcript
Summary
Three reasons NOT to buy income property: 1) It is illiquid. 2) Speculative mania without cash flow. 3) You want zero involvement.
With that understanding, direct ownership of rental real estate still has the best risk-adjusted return today.
President Biden wants to keep people in their homes. He doesn’t want residents removed from their homes under his watch - both homeowners and renters.
Higher mortgage interest rates lead to both higher prices and lower supply. This is counterintuitive to many. I explain why.
The last six times that interest rates rose in America, housing prices rose too.
I read the menu prices from McDonald’s restaurant in 1974. It makes inflation’s effect apparent.
Then Ken McElroy joins me. Together we discuss how inflation affects consumers and real estate investors from an in-person video at his Scottsdale, AZ office.
Ken reminds us how high inflation can go. It was 15% for a time in the 1980s.
Resources mentioned:
Show Notes:
Get mortgage loans for investment property:
New Construction Turnkey Property:
Ali Boone’s Recommended Book:
EQRPs: text “EQRP” in ALL CAPS to 72000 or:
By texting “EQRP” to 72000 and opting in, you will receive periodic marketing messages from eQRP Co. Message & data rates may apply. Reply “STOP” to cancel.
Best Financial Education:
Get our free, wealth-building “Don’t Quit Your Daydream Letter”:
www.GetRichEducation.com/Letter
Top Properties & Providers:
Follow us on Instagram:
Keith’s personal Instagram:
Transcript
Click on a timestamp to play from that location
| 0:00.0 | Welcome to GRE. I'm your host Keith Winehold. I'm talking about some reasons not to invest in real |
| 0:05.9 | estate today and why you still buy for cash flow, why higher mortgage rates correlate with higher |
| 0:11.7 | housing prices and lower supply, which might be the opposite of what you thought, then Ken McElroy |
| 0:17.5 | and I on how inflation affects you is both a consumer and real estate investor |
| 0:22.1 | today on Get Rich Education. |
| 0:27.7 | A lot of investors choose either cash flow or home price appreciation, but one real estate |
| 0:32.7 | market could provide both Jacksonville, Florida. |
| 0:36.0 | With 27% lower home prices than the national median and 1% higher rents, their market has |
| 0:41.4 | appreciated 34% more than other comparable cash flow markets over the last 30 years. |
| 0:47.2 | Get positive cash flow today and appreciation for tomorrow. |
| 0:50.6 | They often have available inventory in Jacksonville start at cashflow and growth.com. |
| 0:59.4 | Is your IRA in a real estate syndication? Yikes, a 37% Ubit tax could hit you, but you still have a chance to |
| 1:07.1 | set up your EQRP and avoid this. Did you make too much money in 2020 and need more |
| 1:12.2 | deductions? Now federal law lets you set up an EQRP in 2021 and get deductions for last year. |
| 1:19.1 | Yeah, retroactively. Even put old IRA and 401k money in Bitcoin, gold or your own business. |
| 1:24.8 | Get control of all of your retirement money, tax and penalty |
| 1:28.0 | free. Text EQRP in all capital letters to 72,000. |
| 1:34.8 | You're listening to the show that has created more financial freedom than nearly any show |
| 1:40.3 | in the world. This is get rich education. |
| 1:58.5 | Welcome to GRE from Schenectady, New York to New York, New York, and across 188 nations worldwide. |
| 2:04.1 | I'm Keith Weinhold. This is GetRous Education. Let's talk about some reasons not to buy real estate, specifically rental property. I've really got three big reasons here as to why you might want to avoid being involved in rental property completely. |
| 2:19.8 | First of all, is that if you're going to need your down payment money back in, say, |
... |
Please login to see the full transcript.
Disclaimer: The podcast and artwork embedded on this page are from Keith Weinhold, and are the property of its owner and not affiliated with or endorsed by Tapesearch.
Generated transcripts are the property of Keith Weinhold and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.
Copyright © Tapesearch 2025.