Foreign [Music] This primary election cycle has not been Without drama and luckily it's almost Over political uncertainty can have a Ripple effect on various parts of the Economy and many people are already Feeling what economists are predicting That a new recession is likely within The next four years some say we're Already in one I know we've all heard That it's a rumor that's going around There's statistics to prove it and Additionally there are many important Local elections happening across the Country in cities large and small Instead of being reactive and waiting to See who gets elected it's time to be Proactive and turn your focus towards Making sure you come out a winner no Matter who wins the primary Robert Kiyosaki says politicians cannot Save you only you can so let's stop Depending on the government and let's Start taking control over our own Financial future The government should not be taking care Of it so we need to take care of Ourselves I've seen and truly believe that when People take control of their own Financial future and education they can Thrive no matter if times are good or Bad
I'm your host Alexandra gonzaleza and Today we're going to discuss how you can Thrive no matter who gets elected At Rich Dad we've heard the saying money Will flow or it's best treated so let's Start to analyze what cities favor Investors where are the rich going to be Putting their money where are these Experienced investors traveling their Money to Over the coming years the rental market In the United States is expected to Expand due to Rising inflation and the Cost of living crisis I know this is Something we're clearly all aware of Because we've all seen the rising prices In gas in our groceries in rental Properties and so if you're thinking About buying an investment property or Starting your own business you need to Ask yourself what are the best cities With steady growth in the rental market As we've always preached here at Rich Dad rental homes are a great method to Get consistent income from your Investments cash flow is King finding Inexpensive houses with strong cash on Cash returns is essential if you want to Guarantee a high return on your Investment Finding the best investment properties In the United States is simple with just A short glance at a property evaluation Map for instance there are cities in
Florida like where I live Texas South Carolina and Ohio that have A low housing cost High rental yields And Rapid job growth these are key Indicators that you need to be focusing On But over the coming years investors Should exercise caution especially in Markets with extreme overvaluations In some of the more moderate markets Including Cleveland and Chicago the rent To price ratios are high and as Competition declines Nationwide sellers Are more open to negotiating rates If you can negotiate a price decrease on A property that will generate a Significant amount of positive cash flow And holds its value despite expected Price drops then you've got a deal However you need to be careful You need to be careful with your Projections of rental Revenue because Rent growth is decreasing we're Obviously not seeing these astonishing Inflated rental prices that we are Seeing just a couple months ago those Have already decreased they are expected To decrease even more and we've seen Rent prices drop recently as well and so You need to anticipate decline in home Prices before a recovery you actually Might be able to predict where prices Will end up Um when they're at when they're at their
Lowest right by looking at previous Changes and property prices for the Market you're interested in this is all Public information you can find it Online But be prepared to seize opportunity Analysts are actually predicting that Prices will bottom out between early 2024 and late 2025. while the Mortgage Bankers Association predicts that Mortgage rates will decrease to Approximately 5.4 percent by the end of the following Year A lot of Millennials have been waiting For an opportunity I know we've all been Dreaming of the moment that we can Finally purchase a property and it's a Friendly reminder to all of you that you Need to increase your cash savings not Tomorrow not yet not the next day today You need to increase your cash savings Today so you can benefit from the best Offers when they become available that Means putting pause on all the Liabilities and doodads you want to be Paying you want to buy right now a lot Of people have been spending their money From the stimulus checks on things that Frankly they don't need and so if you Want to be able to achieve that dream of Buying your first property then you Definitely need to start saving right Now
And as Ken McElroy has mentioned before The market is much more important than The property and so he's actually Mentioned this in other Millennial Monies he's mentioned how important the Market is not so much how the property Is what type of property is like or even What it looks what it looks like and so Now that we've covered The Importance of Being prepared let's get into what makes A good real estate market I'm going to give you the seven factors That contribute to a favorable real Estate market for investors Number one is definitely job growth job Growth in the market you're looking at Indicates if there will be an increase In demand for rental properties if There's going to be less vacancies and More room for profit more jobs means More demand means more people wanting to Rent sure they'll have they'll be They'll maybe be able to save up enough To buy a property but this also means That there's going to be a lot of people Wanting to rent in the area that they're Seeing job growth in and the second one Is that you need to take a close look at Current and expected future population Growth population Trends are extremely Important of course the more people that There are in a place the more the Population growth the more renting will Be in demand
Some things that you can observe that Kenny has actually mentioned in previous Millennial monies as well is you can Actually access this is public Information you can access how many U-Hauls are leaving and how many U-Hauls Are coming in and is there an increase In driver's license are they being Registered more frequently Um in the market that you're looking at The third one would be the current Construction activity right and is there Forecasted growth in the real estate Development you can easily look around Do you see Tower cranes or bulldozers Construction at all this is a good Indicator to know that the area and the Market that you're looking to invest in Is actually growing because they're Expecting a higher demand Then another thing that you need to be Looking for is government planning on Both the state and local level and Evaluate whether or not the municipality You're considering investing in is Pro-growth or is it overburdened with Red tape and regulations The fifth one would be housing Affordability you can use the price to Rent ratio to compare medium home prices To meet in rents To see if this makes sense for you Um the sixth month would be the Absorption rate right this is basically
To measure supply and demand to help you See how quickly homes are selling And the seventh one is the vacancy rate Which compares the average in your Target market to the overall average Vacancy rate for similar markets Those are the seven factors you need to Look for rewind write them down you know Make your own little checklist Um so that when you are looking for the Property you can realize which ones are More important to you which ones take Higher priority and if this property That you're looking at if the market if It checks off as many boxes as you need It to check off so make sure to rewind Look at it study them do a case study You know practice on your own look at The areas that you're looking to invest In and see if these the these you know Fall under the categories that we just Discussed But keep in mind landlords in every State are expected to adhere to many Laws and restrictions from tenant Landlord statues to taxes and insurance Rates it's important to keep in mind That many of the laws implemented to Keep things in order are very Regional In nature With a few exceptions and those are Considered on a nationwide level many of The laws governing landlord-tenant Relationships vary from state to state
As a result certain states are more Favorable than others for owning rental Properties due to a number of current Considerations These variables that attract investors Tend to be somewhat individualized but There are roughly seven that are present In all the states that are now the most Landlord-friendly For example the first one that we're all Familiar with is the eviction process Since evictions are arguably the most Dreaded component of investing in rental Properties many landlords actually seek Out states with streamline procedures I Know this is something we've all been Actually fearful of before investing And it's far more simple to evict Problematic renters in some states than It is in others and some states actually Support tenants and that makes it Practically impossible to evict them Others generally support landlords by Favoring quick and painless eviction Procedures and having a low tolerance For people who break their leases There's also landlord and tenant rights Each state grants rights to both renters And landlords but the extent to which Those rights are upheld varies greatly From state to state Tenant rights can occasionally be very Strict to the point where they endanger The landlord's ability to make money
This is something you need to look out For On the other hand there's other states That have a reputation that is more Evenly distributed and benefits each Side It might be in your best interest as a Landlord to make investments in states With legal Frameworks that support your Ability to make a living Another thing to look at is rent control It's frequently used to reduce the cost Of the rent in specific areas just like The name suggests and so some states Don't allow landlords to increase rents Despite things like inflation that Things that are out of our control or a Yearly increase in taxes and utilities And so this is something to be very Cautious of as well the restrictions can End up harming well-intentioned Landlords who are frankly just trying to Make a living but the objective behind This is to actually stop bad landlords Who are price gouging tenants Investors who want to become landlords Should pay close attention to locations Subject to rent regulation Registrations and licenses is something Else that you need to keep a close eye On to actively rent out real estate Assets to renters landlords are required By a number of states to get Registrations and licenses
And it should come as no surprise that The licenses and rules exist to of Course help home homeowners get ready to The possibility of becoming landlords However since many of these licenses are Expensive can get pretty pricey it of Course can be a nuisance for certain Landlords so if you're looking to invest It's in your best interest to lease in a State that is friendly to landlords and Does not need them And then tax and insurance rates like we Mentioned earlier as well local towns Set property taxes and occasionally Insurance premiums So potential landlords should think About the property taxes levied on their Assets if they plan to rent them out Because some states have significantly Higher taxes than others and we all know That we're all well aware of it but it's Something to be very cautious of it's Worthwhile to research local taxes Before making investment in a rental Property There's also things like competition Like we've heard before location Location location It's the Golden Rule when it comes to Real estate investing in actuality the Area on which an investor decides to Purchase a rental property is more Crucial than ever before Investors should pay attention to the
Level of competition in each market Nevertheless certain states are Naturally more competitive than others And of course due to covid-19 there are Places that there are places that Actually follow certain regulations The covid-19 pandemic resulted in Numerous reforms to the real estate Sector including modifications to both Federal and state legislations governing Rental homes in some areas these Regulations required rent freezes and Moratoria on evictions Many states have started to loosen up Finally on these regulations put in that Were put in place um during 2020 Which is enabling landlords to resume to Their regular business finally So we've talked about what makes for a Good real estate market and prior to the Show we did some research to Gary the Best states for investors in 2023. there Are several states that have a good Reputation for supporting investors in Their real estate Ventures but some have Natural benefits over others Particularly in the states I'm about to Tell you landlords appear to receive More benefits than almost anywhere else So these are the following states that Will be the most welcoming to landlords In 2023 There's Texas Indiana Colorado Alabama Arizona which I used to live and which
Is where Richard has their offices Florida which is where I currently live Now Illinois Pennsylvania Ohio Georgia Kentucky Michigan and North Carolina While there's excellent rental markets In every state there's no denying that Some governments offer incentives to Investors who choose to locate their Business in particular areas Undoubtedly some states are more Advantageous than others for investing The rights of landlords for instance are Frequently prioritized over those of Tenants and landlord-friendly Jurisdictions which is immensely Positive for any portfolio of rental Properties In terms of eviction laws these states Regularly favor landlords and have Minimal property taxes that's great news For anyone who's looking to invest in Those areas there is no reason Landlord-friendly States can't Simultaneously increase and asks value And reduce risk when combined with a Strong cash flow So now that we've identified where your Money will be treated best and where Your investments will Thrive we can dive Deep into how to actually be prepared to Do the real thing Let's take a break and when we come back I'll be talking about an extremely Important tool that has been very
Influential in my life that you can use Right now to perfect your investing Strategy Feeling powerless over current events And your financial future Financial Freedom is your freedom Robert Kiyosaki Is the best-selling author of Rich Dad For Dad over 40 million people have Taken Robert's advice now it's your turn Attend Roberts free virtual wealth Building event claim your free access Now at richdadfree.com don't wait access Is limited go to richdadfree.com that's Richdadfree.com Welcome back in the first half of this Episode we went through the key factors For choosing where you should be Investing in this half I want to talk to You about a very important tool that Will teach you how you should be Investing The language of money is not a subject That schools carry but yet it's one of The most powerful tools we can use we're Taught to work to earn money but we're Not taught how to make money work for us And that's why majority of the people we Talk to are stuck in the rat race Take a look at your inner circle right It can be friends family members or even Majority of the population doesn't have To be your inner circle it's a Reflection of the habits of the Education we received in the school
System And of course everything has its flaws But clearly there's a reason why there's So many people still stuck in the rat Race because they were never taught that There's another Avenue to make money Besides having a traditional nine to Five and from a young age we're taught To be addicted to a paycheck we receive And we let it Define us we let it Determine how valuable we are And growing up my parents quickly Noticed this flan education system and Decided to make learning about money fun All through a game that we could play at Home and we could play together I had the opportunity to think Differently from everyone else from very Young I got to see different Opportunities in the real world And like Robert says a coin has three Sides right there's the heads there's The tills and then there's the edge and I gotta be on the edge of the coin I got To view the traditional career path and See if that's something I wanted because There's nothing wrong with that but then I also got to see the b in the eye side The big business owner the investor side The entrepreneurial world And this helped me and my family see Opportunities we would have never Noticed without this board game it Prepared us to invest in the real world
To identify a problem and make a Business out of it or to have an Innovative mentality And if you haven't guessed by now the One tool that made this all happen is The cash flow board game Growing up Robert learned the game of Investing by playing Monopoly it was a Simple Formula Four greenhouses one red Hotel we've seen him and heard him talk About this many times although he boiled The formula down the important lesson is The benefits of learning from Play The Power of play is evident in the benefits Derived from it Sometimes we hear Robert get upset with The school system right And it comes from really a place of Frustration and anger because we all Know there's a lack of financial Education in the school system and we've Seen the consequences play out in Today's society and frankly I think he Just gets upset because he wants the Entire world to seem to have the same Opportunities he had right and Thankfully he had a rich dad that taught Him all this but there's also so many People that don't ever meet eye to eye With this kind of education and then are Confronted with a rude awakening because They didn't fit the traditional mold That the nine to five that sorry that The education system has for us
And so these are you know there's always These funny means memes going around That talk about how the mitochondria is The PowerHouse of the cell but yet we Don't know how to pay taxes right and Yes it's funny when we see it but it's Actually kind of sad once we think about It And while of course school does prepare A lot of individuals to become Successful in fields like medicine law Engineering I mean I don't know what we Would do without doctors and lawyers and I'm grateful for them and I'm grateful That we had an education system that Prepared them to assume this important Role in society But frankly it also doesn't adapt to the Talents that many others have and so These others are left to the side Feeling competent when in reality they Could be successful business owners they Could be investors they could be Investing maybe in art collections or Creating a business out of something Creative that they wanted to do And we also don't even for someone who's Following the traditional nine to five Right we don't learn a lot about a lot Of things like the credit score taxes Finances how to purchase a property or Even if you do have a nine to five how To invest wisely your extra money Instead of throwing it blindly to a 401k
It almost feels like it was designed This way intentionally but regardless we Have an opportunity to learn the Importance of financial education and it Can all happen through a game and if you Want to break free from the rat race the Best way is to increase your financial Education and by playing and then doing The real thing Cash flow the board game is assigned to Help you play over and over and over Again until you learn from your mistakes And you can be ready and feel ready to Start investing in real life It's designed to help you break free From the rot race and experience Financial Freedom Richside's mission was to help you play And break free from this vicious cycle That Society has created for us in many Cases it's the marketplace not the School that's filling the void of this Need for humans who want to learn by by Doing by playing and the marketplace Does it through games right we've all at One point became addicted to a game and It's a method that much of the Traditional education system ignores Robert and Kim Kiyosaki believed so much In the power of play to learn and the Demand for that kind of learning that They decided to make a product that Would meet that demand and in fact they Believed in this product so much that if
You can't get your hands on the cash Flow board game you can now actually Play it online with friends with Strangers online because it's a free Digital version that we want everyone to Have access to And finally I want to talk about why Playing the cash flow game will make you A better investor will change your Reality right as I mentioned earlier Roberts Rich Dad told us one of the Great formulas for wealth is found in Monopoly four greenhouses one red Hotel This one great formula rich dad spoke of Was that of cash flow Monopoly is really Just a cash flow game you purchase a Property Balance cost look at the Location and collect rents when people Land on your properties In order to make more money you can Develop and improve those properties Building houses and eventually hotels For example having one greenhouse on a Property you can make ten dollars right When someone lands on it and then Um two houses could make you twenty Dollars three could make you Thirty and A hotel could make you fifty dollars Basically more greenhouses and red Hotels means more cash flow It's a simple game but a very important Lesson and one Robert and Kim learned Immediately one of the most important Lessons you learned from the game of
Monopoly is that money as it exists Today is a real currency The word currencies derived from the Word current think of an electrical Current if it stops moving it'll die It'll lose its power Money is an electrical current if you Sit on your money it'll eventually die This should be obvious to you these days Since we're facing record inflation each Day each day you sit on your money it's Worth less and less And in order for your money to keep Generating value it needs to move into Assets that in turn create more money Both through cash flow and through Appreciation But this is not a new phenomenon the Value of the dollar things to inflation Is near zero over the last 100 plus Years In Monopoly just like in real life those Who hoard their cash and never invest it In Properties or assets are those who Lose the game so let's not lose the game In real life And if you played the cash flow board Game then you know it's basically Monopoly on steroids the simple lessons Around money that Robert learned from His Rich Dad and Monopoly were the Foundation he needed to become rich Eventually which is exactly what is Taught in the board game
And along the way he learned a lot of Other lessons that led him to become a Successful investor With the cash flow game Robert and Kim Took the simple rules of Monopoly and Applied those complexities of investing Scenarios and the effects of the market In Monopoly you can really only play Against other players but with cash flow You you play against things like other Players the markets and even nature so This is really almost real life Scenarios The goal of the game is simple you Escape the rat race of your nine to five Job by using numerous different forms of Investment strategies to build up a Portfolio of assets and you have to Avoid things like liabilities which we Call do dads right so like that cup of Coffee those designer shoes Um travel but all these help you Propel Onto the fast track which is where real Wealth is built and in the process you Learn the valuable lessons his rich dad Taught him about money as well as the Lessons he's learned over a career of Investing and building great wealth This game is also like being able to Climb into Robert and Kim's brain you Get first-hand access to their formula For wealth literally step by step Confucius once said I hear and I forgot I see and I remember I do and I
Understand This is exactly what the cash flow game Does you do and you understand the Language of money Ultimately we believe that games like The cash flow board game create more Understanding the more understanding People have the more they can see the Other side of the coin the more they can Be on the edge of the coin instead of Seeing fear and doubt you get to see Opportunities that you've never seen Before because you're increasing the Understanding that you have over these Topics each time you play the game There's so many stories and testimonials I've heard of people who have played the Cash flow game and that their lives have Suddenly changed and I'm not kidding There's extremely wealthy people that Attribute their success to this game so That's a clear indicator of something we Need to start implementing in our Routine in our even our you know our own Education make it a priority to play This game once a week maybe twice a Month if you don't have that much time And these people gained a new Understanding right they gained a new Understanding of money and investing and Understanding that push them out of Their old thoughts their old crippling Thoughts and gave them new possibilities For their lives this is especially
Effective because cash flow creates a Low risk environment so there's no Commitment there's nothing to fear and You get to put everything into practice Like investing tactics that you would Probably shy away from in real life If you're a saver try aggressive Investing in the game if you're a risk Taker try slow growth Really do the opposite of your habits Right because you get to understand why Certain habits were formed why certain Thoughts were formed around money and You get to allow yourself to get out of Your comfort zone encourage the people Around you to get out of their comfort Zone as well because by doing that you Gain the confidence to then translate Those tactics into your actual investing Activities in the real world People Are creatures of habits right we're Creatures of habits and it's only when We're forced to change our habits by Outside forces that we finally take Action But first in order to make any change in Our life we need to become aware of our Habits we need to understand who we are And that takes emotional intelligence Right and it's something that you get to Discover while you're playing this game You might find yourself constantly Asking yourself questions like why am I
Always out of money why can't I afford To do things that my friends are doing Why can I provide for my family and how Can I get out of debt or why am I still Poor Playing the cash flow board game will Help you accelerate your financial Education by helping you uncover the Reasons behind your current spending Habits or maybe your fear of money your Fear of wealth your fear of poverty has Hindered you from taking opportunities That you shouldn't be taking And once you realize what drives your Spending habits you can make the Decision to shift your mindset and make Money like the rich And just like the rich make money Differently than the poor and middle Class they also keep and spend their Money differently too so we need to be Learning from them You know some of my favorite things About the cash flow board game is that You can actually play the game over and Over again you don't get sick of it you Get to practice the investing strategy Like you don't lose money in real life So there's nothing to fear And if you make a mistake you can learn From it the next time Implement Different strategies the next time Around like I was telling you guys Earlier the habits that you reflected in
One game you get to look at it on a Piece of paper and come face to face With your rude reality right and Implement some of those habits into the Real world or change them for the next Game and it starts giving you the Mindset you need in order to start Thinking like an investor another thing That I love about this game that I Mentioned earlier are the fact that your Habits create your reality and this is a Game that truly exposes you to your Habits and your mentality on the piece Of paper during the game you get to Start realizing like we mentioned your Spending habits your saving habits your Fearful habits Um what's stopping you from investing And it really comes to light and so you Almost get exposed to the little voice Inside your head that keeps telling you Um you know you can't do this you can't Do that or maybe you're an aggressive Investor and so it shows you that maybe You need to be more cautious with your Money evaluate things more not be such a Quick start but more of a fact finder or Who you need to find on your team to Evaluate the deal for you since you're More impulsive with your money You learn how to build a team based off Of your weaknesses and your strengths And then another thing that I truly love Is that you get to play with your family
And if you have children get them Involved change their perspective right Now because it's early for them you know For for older Generations it's a lot Harder to break from certain habits that We have but when we're younger and we're Taught and we're exposed to this Education we're able to start to create Habits before they're even implemented Or before there's even roadblocks in our Mind my family and I played together From a young age till now and we all Speak the language of money it's Something we all learned this allows us To support each other while we get into Our own investing deals think outside The box and it's an opportunity for for All of us to grow together you know my Parents have been able to give me Business ideas I've been able to help Them in return with some business ideas With investing ideas and it's all Because we're all speaking the language Of money we've all learned tactics Through this board game And yes in the game you're exposed to Real estate of course because you know Kim loves real estate Robert does as Well but you're also exposed to Commodities and Stock Investing and so It's not just about real estate and it's Not just a real estate game so you also Get to learn about many other ways you Can start investing and you actually
Come to realize what you're most Interested in ironically I realized that I liked real estate investing my little Sister was actually a little bit more Intrigued in Stock Investing and so you Get to see what in real life you should Be gearing your focus towards And these are just a few of the reasons Why I love the game but once you play it You'll understand and so if you are Already a cash flow board Um game player leave a comment below and Tell me why you love playing Thank you all for joining us for this Episode of Melania money I'll be adding The link in the description to our Holiday bundles these make the perfect Gifts and have a ton of value it's the Gift that keeps on giving the gift that Can prepare you and your loved ones for The future that you deserve the gift of Financial Freedom Thank you guys for tuning in and I'll See you all in the next Millennial money [Music]
