Welcome to GRE. I'm your host Keith Weinhold as we talk to a GRE listener like you. Today, he didn't learn about this show in its real estate strategies until later in life than some people do, so he doesn't have as much time to recover from financial mistakes. Let's see what happens today on Get Rich Education.

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I'm your host Keith Whitehall. Before we bring in this week's guest, mortgage rates have ticked a little higher such that

they're now over 7%, still historically average, but yet it's the highest they've been

in a while. So how do you adjust to that as an investor? In fact, for new deals that you're looking

at, these higher rates compress your cash flows so that it's more likely that your projected

monthly rent income is lower than your mortgage

and operating expenses. That's negative cash flow. Well, as you're probably in adherent to the

abundance mindset in real estate pays five ways, you might still agree that it is hard to find a

better place to put a dollar today. Well, in that case, one way to

approach new purchases is say, rather than make a 20% down payment, make a 30% down payment,

and now you're cash flowing again. In that case, I think it's important to acknowledge then that in

general, the deals are not as good as they were a few years ago. They were just really good back

in 2018, 2019 before the wave of inflation hit in more recent years. So say if you put 33% down rather than 20% down, now you're only getting

3 to 1 leverage, not 5 to 1 leverage. If you do think it's still the best place for you to put a

dollar today, and you sure can make that case with the certain long-term housing shortage now and ahead, if you do put a greater percent

down, sometimes what will happen is that your lender will give you a lower interest rate for

doing that because the bank is taking less risk when you're putting more skin in the game.

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