Get Rich Education 599: What War Does to Housing, Harnessing Calm Capital During a Wealth Window
Keith explores how major geopolitical conflicts tend to reshape—not destroy—real estate markets, redirecting demand away from active war zones and toward safer, more stable regions. He explains how inflation, interest rates, and supply disruptions interact with property values over time, and why certain locations and asset types are more resilient than others.
Investor and CEO Dani Lynn Robison, joins the conversation, to talk about building long-term wealth through "needs-based" real estate and the idea of a personal "wealth window" — the finite period when combining active income with compounding can have the biggest impact.
They discuss the shift many investors make from being hands-on operators to more passive capital allocators, and why calm, long-term strategies focused on essential housing and services can help investors navigate uncertainty and technological change without panic.
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Complete episode transcript:
Keith Weinhold 0:01
Welcome to GRE. I'm your host. Keith Weinhold, wars are extremely expensive. The one to $2 billion spent on the Iran war every day is stoking inflationary pressure. How do wars affect real estate and will values appreciate 10% or more this year? You'll get clear answers, then I'll speak with a woman that I entrust with my own funds today on Get Rich Education.
Corey Coates 0:34
Since 2014 the powerful get rich education podcast has created more passive income for people than nearly any other show in the world. This show teaches you how to earn strong returns from passive real estate investing in the best markets without losing your time being a flipper or landlord. Show Host Keith Weinhold writes for both Forbes and Rich Dad advisors and delivers a new show every week since 2014 there's been millions of listener downloads of 188 world nations. He has a list show guests include top selling personal finance author Robert Kiyosaki, get rich education can be heard on every podcast platform, plus it has its own dedicated Apple and Android listener phone apps build wealth on the go with the get rich education podcast. Sign up now for the get rich education podcast, or visit get rich education.com
Keith Weinhold 1:17
the same place where I get my own mortgage loans is where you can get yours. Ridge lending group and MLS, 42056, they provided our listeners with more loans than anyone because they specialize in income properties. They help you build a long term plan for growing your real estate empire with leverage. Start your pre qual and even chat with President chailey Ridge personally, while it's on your mind, start at Ridge lendinggroup.com, that's Ridge lendinggroup.com.
Speaker 1 1:51
You're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education.
Keith Weinhold 2:07
Welcome to GRE from Canterbury, England to Sunbury, Pennsylvania and across 188 nations worldwide. I'm Keith Weinhold, and you're listening to get rich education. How does war affect real estate? The war with Iran that began one month ago has really brought this to light. Now, a lot of armchair analysts and even some people with experience, they succumb to folly by having an emotionally driven hunch, as we like to say here at GRE take history over hunches. First look at what's actually happened historically, and at least let that inform the hunch Oh, and now you've brought pragmatism to the question of what happens to real estate in wartime. Now the latest war in the Middle East happened at a time where the existing picture is that US residential real estate prices are stable. Values are not rising or falling very much, and it's been rather slow overall and historically low transaction volume, fewer sellers and fewer buyers, and mortgage rates are near historic norms. I'll get back to us real estate shortly. But as you might imagine, real estate values that are actually in direct war zones, they get pummeled. So we're talking about many parts of the Middle East at this time in history, Iran, Israel, Lebanon, the UAE. In fact, values in the war zones collapse fast when there's physical danger. Properties can be damaged or totally leveled. Insurance becomes unavailable or meaningless, buyers disappear, liquidity dries up. The result is that prices fall hard, sometimes to near zero in active conflict zones. And that completely makes sense. I mean, would you want to make an offer to buy a property in an active war zone, I wouldn't now in safe regions that are adjacent to the war zone. Oh, the opposite has happened historically. Values surge because you've got refugees and migrants that flood into those nearby safer cities. Rental demand spikes immediately, and vacancy collapses. So in these adjacent safe areas, rents jump first, and then prices follow. In fact, when Russia invaded Ukraine back in 2022 this is exactly what happened across Eastern Europe. Cities like Warsaw Poland saw rent Spike. Almost overnight. All right, historically, what has war done to interest rates and inflation, like I alluded to last week, I think you already know that they both rise during wartime, and they sure are Now historically, war triggers energy shocks like oil and gas, and during this war, the energy shocks are greater than usual due to the Middle East being oil rich, war trigger supply chain disruptions and government spending surges. It's been well documented that the US has been spending one to $2 billion every single day on the war with Iran, and this is what can lead to that higher inflation and higher interest rates. And here's the tension for real estate, higher mortgage rates often put downward pressure on real estate prices, but yet inflation puts upward pressure on housing and all types of real assets. So the result there is this short term tug of war longer term, the real estate wins in inflation because it's a hard asset with debt attached. But back to the direct war zones, construction slows and supply tightens, and that's because war disrupts the very availability of labor and materials like steel and fuel and shipping developer confidence goes down the tubes too, and the result is that fewer homes get built, and then existing inventory becomes more valuable after the war, and this is The underappreciated force. Less supply later means higher prices later. Now let's talk outside the war zone. And before I do you know, gosh, it's amazing, whenever the US is involved in a war, it's almost never on American soil that's us hegemony and geography at work. There stuff's always getting blown up on the other side of the world. Rarely where I live in America, but here at home, military and government hubs can boom during war because the war spending is not spread out evenly. Defense contractors expand military bases, scale up logistics hubs get busier with that stuff. In mind, you can think then about which us locations can really boom with economic activity during wartime, as sad as it is for the active combatants and casualties, so the result is for the US to have localized housing boom, something that's often overlooked, but it's very real. And the big takeaway, and this is what most people miss, is that war does not crash real estate. It reroutes demand in destruction zones, there's collapse in safe, stable areas, like certain us regions, there's often a surge and on a national level in the US now, the result is mixed and resilient. And over time, inflation plus constrained supply plus population shifts tend to push values higher in the surviving markets. That is history over hunches. So then a better question than, how do wars affect real estate is instead, where does demand go next? That's a great question. Now, when you think about US military and defense corridors that benefit that's places like Tampa, Huntsville, Alabama, Norfolk, Virginia, and say, San Diego, because historically, defense budgets expand. Contractors hire aggressively and military personnel increases if higher mortgage rates persist and it keeps housing affordability strained, the winners tend to be lower cost resilient markets, places like Cleveland, Memphis and Kansas City. When the war with Iran began, 30 year mortgage rates were 5.98% and then they quickly shot up to about six and a half. They are still lower today than they were a year ago, even during geopolitical chaos, domestic migration really doesn't stop. People will keep piling into boring Sunbelt suburbs in Florida, Texas and Arizona. Now, if war causes domestic travel to drop in the US, and that's an if what happens historically is that short term rentals and hospitality driven real estate can get hurt. Think places like Las Vegas and Orlando. Now, let me have a word with you on interest rates. For a couple years now, people have talked with certainty about how mortgage rates and interest rates have all turned. Types are gonna go down like they've just gotta go down like it's a foregone conclusion or something. And as you know, all this time, I have been resolute in conveying the fact that you cannot predict interest rates with any certainty, and trying to spend time doing so is a fantastic way to waste your time, and sure enough, with a new war, rates rose, they didn't fall. I will forecast home prices, but no one can predict rates. Today, the Fed talks about increasing the rate more than cutting the rate. Now, inflation has been in this small range between two and a half and 3% for almost the year now, inflation has been above the Fed's 2% target. Do you realize this every single month for more than five years now, floating high for more than 60 months in a row before I discuss what Ward does to the rate of inflation.
Keith Weinhold 11:06
let me share something kind of humorous with you. My height of five feet, 11 inches. This is the most honest height that a man can be. Here. I am 511 I weigh 174 every other man of my height rounds up and says they're six feet tall. I'm telling you, heightflation among men is every bit as rampant as price inflation among consumers, but you don't have any choice in the price inflation, so History doesn't repeat, but it often rhymes. Back in the 1970s America experienced what some people call this famous double hump inflation, because in 1974 It peaked at over 12% and then just about five years later, you had another peak of almost 15% inflation and that ran into the beginning of 1980 back in the 70s, those inflation homes were caused by an oil embargo, Nixon, severing the dollar from gold and the Iranian Revolution. Yes, Iran back then too. All right, well, here in more modern times, could we experience a double hump again? Because we had the covid inflation wave that peaked in 2022 and next, could we have another inflation wave five or six years later, just like the 70s? Did you probably already know the story back then, that's when inflation only got crushed. How did we deal with it? Then when Fed Chair Paul Volcker ruthlessly jacked the Fed funds rate to near 20% and that made mortgage rates blast past 18% in 1981 yeah, that all makes today's mortgage rates sound rather adorable, doesn't it? The war with Iran, it is already the biggest oil supply disruption in history, more than double the previous record in the 1950s This is not a small deal. There's a real potential for inflation to spike higher. The oil supply shocks things, because oil is the master ingredient of the global economy. Even if the war winds down, it takes time for things to get back online, but really, the way to think of oil is the master ingredient, that's the way to think of it, the master ingredient. I mean, it's embedded in nearly everything except your morning coffee, plastics, chemicals, fertilizers, transportation. So like an economic octopus, oils. Tentacles extend everywhere. For example, higher fertilizer costs now mean higher food prices later and yep, eventually even your morning coffee, although the US does not rely directly on the Strait of Hormuz for oil, those prices are set on the global market. I myself sailed through the Strait of Hormuz in 2020 and it didn't feel so perilous to me then I was on a cruise ship. But in wartime, you don't want to be on an oil tanker. Why not? Well, it's just the slowest moving vehicle on Earth, packed with the most flammable liquid on earth through the most active war zone on Earth. About a week later, I also flew over the heart of Iran, and it is quite an inhospitable looking place, arid with tall mountains. In fact, they have the highest mountain in the Middle East there. It's called Mount damavanda, about 18,400 feet In Iran
Keith Weinhold 15:01
Dubai, real estate is not going to be the same for a long time, maybe ever. It's said. It's been bombed pretty often this year. So all of this is not ephemeral, what the US calls operation epic fury. It could elevate inflation for years. Wars are expensive, missiles, aircraft carriers, troop deployments, all the logistics, we are not going to pay for all of that with savings. Lol, let's all pause right now for the audience laughter. We don't have savings. We pay for it with debt, and the easiest way to pay for gigantic spending programs is to just quietly and sort of surreptitiously print more dollars. That's inflation. It dilutes every single dollar that you own now, every $20 bill in your wallet, every $100 in your savings account, inflation also debases every dollar of your real estate equity and every dollar in your stock portfolio. You'll remember that about six months ago, right here, I pointed out that though Trump says he wants low inflation, his behavior is highly inflationary. One thing to keep in mind is that, whether you like the President or not, what he does is when he sees the economy hurting, like with high gas prices or with the sinking stock market, what he does is he acts much like he did on tariff tweaks, but at some point it becomes too late to reverse course. You've got to ask, Have we cut rates too much? The Fed made rate cuts both last year and the year before, and meanwhile, a monetary puzzle keeps on brewing. The war could make things awkward, because we're supposed to have a new Fed chair, Kevin Warsh, coming in a month and a half. Trump wants him to lower rates, but if inflation heats up, the obvious solution is to jack up rates. US stock investors are already feeling it, because the indices entered correction territory last week due to the war a correction means a drop of 10% or more from a recent peak, and us real estate investors are well insulated. Like I said, long term high inflation boosts values. Rents are even more stable than prices and rents, as long as you're outside of the direct war zone, have very little relation to the war. But systemic supply chain disruptions can be a real thing that fuels inflation, and here's why. See, manufacturers used to keep eight to 12 weeks of inventory in stock, but no longer. Today, we've got the efficient just in time supply chains and there is less stock on the shelf. The system is fragile. That's why this domino effect can create this long term economic headache of shortages and inflation. Have you seen any empty shelves yet, like we did during the pandemic, I have not but as we know, during inflationary times, investors flock to hard assets, it can help to have a little gold, I think, truly just a little. But in wartime, the most advantaged investment class is right where we already are. It is residential real estate held with debt. We are out here winning the GRE inflation triple crown because property values rise, debt becomes cheaper in real dollars and rents increase over time, all while inflation cannot touch your fixed mortgage payment amount. Now, during the last wave of high inflation, that was 2021 and 2022 us real estate prices were up 10 to 20% in each one of those years, not aggregate, but each one of those years. Do I think that this can happen again if we have another big wave of war generated inflation? No, I don't, I do not believe that national real estate prices can rise as much as 10% over the next 12 months, even amidst this low supply condition, and that is because of the ongoing affordability constraint. As for inflation, the cobasy Letter reported an inflation expectation of 5.2% over the next 12 months. There are other projections in the fours out there, but so much will change between now and then. So I think even they would acknowledge that that is a guess. Above all, wars are tragic. Let's acknowledge that the bottom line here is that wars are expensive too. They create inflation, and residential real estate held with debt is more than an inflation hedge. It's an inflation profiting machine. Straight ahead, we'll talk more about what's happening in the real estate market, in some different sectors. It's with a woman that I invest my own funds with for a stable real estate backed return. I'm Keith Weinhold. You're listening to Episode 599 of get rich education.
Keith Weinhold 20:39
Let me throw out a simple idea, sometimes doing nothing with your money is actually a decision. Leaving it parked might feel safe, but over time, purchasing power changes. So the conversation isn't about chasing returns, it's about intentionally placing money somewhere. Freedom, family investments works in real estate people use every day, housing, senior communities, essential properties, things tied to living and not trends. Their freedom notes offering is built for accredited investors looking for structured income backed by real assets, not speculation. I am an investor with them myself. The Freedom team makes themselves available to walk through their approach, structure and operating philosophy so you can ask questions and determine alignment before moving forward, while past performance doesn't guarantee future results, their historical operating philosophy has yielded 100% investor payouts backed by over 20 years of experience. If you want clarity before making any moves, book a clarity call at Freedom. Familyinvestments.com or text family to 66 866, text the word family to 66 866,
Keith Weinhold 22:00
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Kristen Tate 22:39
This is author, Kristin Tate. Listen to get rich education with Keith Weinhold, and don't quit your Daydream.
Keith Weinhold 22:55
Today we're talking about the wealth window. Why this moment in real estate is different in the opinion of our guest. I'm talking with a woman that I invest my own liquid dollars with because we've been friends for a decade. They have a track record of making investor payouts 100% of the time and on time. She's the founder and CEO of freedom family investments and owns eight real estate businesses. What they invest in, and therefore what my funds are backed by, is recession resilient, needs based real estate like multifamily, senior housing and self storage. I have a book on my bookshelf that she and her husband wrote, called Get Real and she has an upcoming book, calm money never panics, and a forthcoming Netflix documentary that's going to bring her message to a global audience, as her new partnership with Dr Phil to bring Straight Talk financial clarity to more people. Her philosophy is we measure success, not just by ROI, but by return on life. Rol, love that welcome back to the show. Danny. Lynn Robinson,
Dani Lynn Robison 24:07
thank you so much, Keith. I'm so happy to be here.
Keith Weinhold 24:10
You always have so many interesting things happening. Tell us about the Dr Phil McGraw partnership and how your messages really move beyond investing circles. Absolutely.
Dani Lynn Robison 24:20
What I love is when we get to visit again each year, as we talk on a podcast and just as friends. And it's really exciting right now because of the message that I think is perfect timing for the world that we live in right now and how fast things are changing, and Dr Phil came into the picture to really bring visibility to what we're doing and what we're talking about, because there's urgency just around AI and technology and what it's doing to the world and the uncertainty in the marketplace. Because I'm on conversations every single day with investors who just aren't sure what to do anymore. They're just like, I'm not sure exactly where to invest. I don't know what the future holds, and we can't rely. On history anymore, and so it's that instability that we're talking about that people probably feel more than they actually articulate very well in the world and in the economy and our finances. I mean, I don't know if you heard the stat, but chat GPT reached 100 million users in 60 days, like fastest adoption of technology and human history. So really, Dr Phil was, how do I get this message out to the world in a bigger way? And he brings such visibility to everything that he does. So does the documentary, so does the new book. So I'm putting it all together and doing lots of things, and I'm super excited.
Keith Weinhold 25:37
Dr Phil does more than just lecture teen girls that are brats to their parents, Dr Phil needs to invest as well. And you know, Danny, part of the stability that you offer and what you're into is just sort of this premise that we know as real estate investors, that not all real estate is created equal. For example, look at what happened to the office space post covid, and you really are formative with needs based real estate, like I said, and where capital's flowing now into that more resilient sector. Can you tell us more about that?
Dani Lynn Robison 26:14
Yeah, absolutely. So let me touch on a few other things about AI and technology, and we're going to run into this analogy that I like to use about the river. So right now, with what everything that's going on, I'm calling it the final frontier, the final frontier of building wealth as we know it. And the reason I say it that way is I'm a big believer in not talking about fear based messaging, like I hate things that like the news that just brings fear into your face and makes you scared of everything that's going on, but I am a fan of being real, right? And everything that's going on right now, like as careers are changing over the next five to 10 years, we're just talking with high income earners about what's going on and why we're doing what we're doing, why we're positioning ourselves into what I call this river analogy. And it's because of another stat. There's a bunch of them, but I remember this one always top of mind because it happened five months ago, and I saw it in the news, and I was like, oh my goodness, it's already started, and that's just UPS cutting 48,000 jobs, right? And like I said, I've got articles that are just like, you can just see it, and everybody again feels and see it coming like the writing is on the wall. So when we were looking at what we want to do over the next five to 10 years, as we see what's happening, we're always evaluating that and figuring out where we want to position ourselves and why. And that's where this recession resilient real estate came in. Needs based real estate came in. The phrase not all real estate is created equal, came in, and it's what I'm shouting from the rooftops here, because I think no matter where you invest and who you invest with, I think this is a conversation worth having and questions worth asking. And so the visual I like to use is this, imagine standing on the bank of a river, right? So the water is moving in one direction, towards the path of least resistance. It doesn't fight geography. It flows exactly to where it's needed. So when we talk about real estate, we're talking about where is money flowing right now, in real estate. So we've always invested in the Midwest and southeast. That's where, you know population growth is. A lot of people are investing there. And then we chose three asset classes that I talk about a lot, and this is things that your listeners should write down. If you're driving, don't write down. Just remember it. So the first one is workforce housing. So we chose that one because one in nine Americans live in workforce housing today. Construction has dropped 40% since 2023 so there's a huge supply gap. The second asset class is senior housing, the silver tsunami. I'm sure you've heard of that. Yeah, 10,000 Americans every single day are turning 65 until 2030 and then, if you study all of the stats and you watch the timing of retirement, this ripples like into 2040 so it's 14 years for this asset class that's going to be really, really great for us to be investing in. We're getting very fast, yes, yes. And then the one I was surprised by was self storage. This one, I didn't, I didn't even think about as a recession resilient asset class, but it's actually outpaced traditional real estate over the last 15 years. For some reason, when people are looking at their bills and what they choose to pay, storage is one of them. They want to protect the things that they own, their family heirlooms, whatever it is, businesses want to protect the things that they have, they're putting it in storage. So those are the three asset classes that we're investing in. So our strategy isn't predict markets. It's positioning in that river, right where is the money flowing to? And it's workforce housing, senior housing and self storage. So I always tell people, the question isn't Are you investing in real estate? It's what real estate are you investing in, and are you positioned where the capital is flowing towards, or are you trying to swim upstream? And so that's the needs based versus wants based. Real Estate like the wants based, you nailed it, like luxury apartments, vacation rentals, Class A developments, office and retail space, whereas needs based. Place are the three asset classes I just talked about, because people need a place to live. They always need to care for their aging parents. They always need storage. And these are just things that people cannot live without.
Keith Weinhold 30:12
It doesn't surprise people that workforce housing, which is basically entry level housing, and senior housing, are recession resilient. What surprises some people that aren't in the real estate space is how resilient self storage is. Even in recessionary times, people will not give up that storage locker. They get incredibly sentimental off things that have very little value. Or, you know, they're 1985 baseball cards of Roger Clemens or something. They will continue to pay for that self storage unit year after year? Yeah. Now I know that you often discuss what you call the wealth window, why you feel like this specific moment is different in real estate, and why acting beats waiting. Tell us about that.
Dani Lynn Robison 30:55
What I'm referring to in the wealth window is that point in everybody's life where the combination of active income and compounding is at its peak, right? Because it's always, always, always easier to build a passive income stream when you already have active income working for you. And so I use an example. Doesn't matter what type of career that you have, but imagine somebody investing $2,000 a month at 35 and how that performs compared to somebody who waited till 40 years old and they started investing 4000 a month. So the 40 year old actually doubled the amount that they're investing per month, but the 35 year old is likely going to outperform all the time because of the compounding effect of those five years where they started earlier. Incredible how that works. Yeah, it's incredible. So it's that wealth window that I like to talk about, that people, especially right now, with what's going on I'm getting on the phone. They're like, Danny, this is where my money is. And I know it's not where it should be, but I just don't know what to do. It's this uncertainty. And so I like to talk about the wealth window that, hey, it's not just the return that you're going to be getting because your money's working for you and not sitting in either a place that's getting no return or a very, very low return, but it's also the window of time in which you can actually grow in very, very big ways and allow it to outperform somebody who starts later in life. So I call it the whale of window, because I wanted this imagery of the window closing, and that every single day the window continues to close. And right now, what makes it different than history is what's happened over the last 20 years and what's going to happen over the next 20 years is drastically different. And again, not trying to go fear based messaging, because I hate that more than anybody else, but I am trying to keep it real, right? Careers are already disappearing. I've got a book coming out this next month for physicians, and I was studying what's happening to their industry, right? And we have a lot of engineers that are on our private investor briefings. And as I'm studying those industries, I'm watching things that we maybe wouldn't realize are going to go away, and I'm seeing how it's already started, and that there's some industries or niches within those industries, they're going to go away faster, and that this conversation is not for particular people. It's for everybody, all of us, over the next 510, years, we don't know what's going to happen. We can't predict it. So there's a couple other stats that I wrote down to share on this, because a lot of the people I'm talking to are still sitting in the stock market because they wanted you know something that they were familiar with, right? And something that they knew that they could get their capital out if they wanted. Yeah.
Keith Weinhold 33:25
And we're here at a time when valuations based on PE ratios are near all time highs in the stock
Dani Lynn Robison 33:31
market, yes. And so the stock market right now. There's two articles that I talk about all the time on my briefings, and the first one was because I just looked to see what's happening recently. And you may even know something that's happened more recent than these. But February 5, Reuters reported us. Software stocks lost nearly a trillion dollars in a week. And I was like a week, and in that article, it was Microsoft and Salesforce as to the service now, I think was in there too. That dropped like five to 7% disruption there, yes, yes. And the Wall Street Journal reported February 3, 300 billion wiped off software in a single day. And so this AI and technology disruption. It's real, and it's in the headlines. And for all of us that who see it coming, it's just moving faster. And I think any of us realize everybody to talk to, they're like, I can't even keep up anymore. I can't keep up with what's going on the market, what's working, what's not working. Every time I try to adapt to something new, something new comes out tomorrow, and we're just kind of stuck in this place of uncertainty. So that's why, again, I'm just really having this big conversation about the time is now. Getting clarity is important right now. Taking action, even if it's small, is important right now, knowing where your money is and whether you can rely on it later is important right now. And for me, needs based real estate is where it's at.
Keith Weinhold 34:49
Few people that are well thought through, in my opinion, believe that AI is going to permanently reduce the workforce, but it could in the short term, but long term, when you look at. The advent of any new invention, it often creates more jobs, but just shifts where they're going to be, whether that's the steam engine or the automobile or electricity or the advent of the Internet. That has what has happened every time, really no substantial net job loss, at least in the long term. But we all need to evolve. We all need to learn and stay current on this. And Danny Lynn, I know that part of the evolution that you talk about for investors is that from operator to allocator tell us about that. Yeah.
Dani Lynn Robison 35:35
So I love this conversation, because it's not something that people talk about a lot. I bet you have, because you have gone through this journey, right? So I'm going to call stage one landlord. It's where a lot of people enter real estate, because when you want to become a real estate investor, we all aren't sure where to start, but we've already reached ad for dad. And So level one is landlord. Stage two is turnkey, which you talk about a lot on your podcast, and it's kind of that done for you, landlord, rental model. And then stage three is like funds and more passive investing, which I call the allocator model. So how I define operator now, allocator is really in this stage one, stage two, stage three, right? The operator is stage one, landlord, you are doing it, right? You're finding the property. Maybe you're renovating it. Maybe you're doing you're just doing a lot of the work yourself, because maybe you're new, and that's how you think it should be done. So you're the operator in that situation. Stage two turnkey. Now it's done for you right now. You really just need to look at the opportunities, the properties, and you get to choose one, but somebody else found it, they renovated it, they placed a tenant in it. They're probably going to manage it for you. So this one, I think you're part operator, because you are managing some aspects of it. It's still yours. You still control the asset. But you're also part allocator, because you got to just deploy capital into something that somebody else helped do a lot of that work that an operator normally would do. So that's like, kind of your middle ground stage two, right? Which is a great place to be. And then stage three is that discovery of funds, where you can actually deploy capital into people who do everything for you, and you can get, you know, quarterly distributions, or allow things to compound, and you don't have to do any of the work. So those are the three stages that I talk about. And I know you are involved in two out of the three. I am two. You may tell me you're involved in all three, but I know for sure you're involved at a two out of the three, and I think a lot of people are. We've had investors come to us with rental portfolios, and they decided they wanted the mix, right? They wanted to keep some of the properties. They also wanted to liquidate some of the property, or they kept their entire portfolio, and decided, I just want to add funds to the mix. Because you talk about this a lot on your podcast, and that's getting time back right? The return on time. That's why I like return on life, because I think our time is probably our most precious asset, more than finances. In my opinion, I want my time. I want to be able to choose where it's spent. And really, that allocator, this is the banks, right? They're at the top of the pyramid in terms of wealth, the banks and what do they do? They deploy into good operators. So I just think it's an important conversation to have, and it's why I do funds and syndications, and I do that more than anything else, because I saw the lives of my investors turn, and they were just so much happier because they weren't having to manage as much. And again, they still, many of them balance between the two. I just think it's a really great conversation to have
Keith Weinhold 38:26
this metamorphosis from operator to somewhere in the middle, like a turnkey investor, and then finally, an allocator. Yeah. I mean, you're spot on. And that describes me perfectly. I began as an operator where I thought I had to manage my own properties, and I only did that in my local market. Then I learned about turnkey real estate investing, which is still squarely where I am as an investor, but increasingly I do more and more of the allocation because it is substantially more passive, and really that's where you come in. You help me be the bank in many cases, and as a turnkey investor. Oppositely, I want to be the borrower and create leverage and all that. But in the allocator phase, it can make sense to be a lender with liquidity, and you offer this private money lending that I participate in and help me be the allocator. So tell us more about that, and really just what qualifications one needs to invest
Dani Lynn Robison 39:24
Absolutely. So we have multiple offerings. The one I talk about a lot right now is our freedom notes. And like you said, it's very much like private money lending. It's a promissory note. So one of the things that I've never liked about investing is sometimes it's very confusing how it works. And I say this is Warren Buffett. Actually, you should never invest in something you don't understand. But that's like, my mindset as well as like, if I don't understand it, if it's too complicated for me to understand, then I don't want to invest. And so we've always gone about everything. And you can take, you know, every single podcast I've done with you right from the very beginning. Okay, we just keep things simple. And so freedom notes and all of our offerings are essentially a promissory note of sorts, and you get fixed returns, and it depends on how much you invest. We do have both accredited and non accredited options. The Freedom note is an accredited offering. It does have fixed returns up to 14% and then we actually put in a 2% bonus on top of that for people who do invest long term. And here's why I do that, we're going to be talking about calm capital in a little bit. And I believe in boring investing, right? I believe in investing long term, because emotional investors tend to lose in the end, because they're always moving their money in and out. And it just doesn't work for you long term and so although we give annual liquidity options, giving people the option to get their cash back out once a year, we do that for peace of mind, more than anything else, less than 10% of our investors actually want their cash back. They do believe in the power of long term wealth building, but they love, love, love, the peace of mind that they can have access to their capital if they need it, right? And so that was really, really hard to do in real estate, because real estate is illiquid, right? So we had to work with an attorney for a very long time to figure out how to do it. How do we offer this option, knowing that our money is tied up in real estate? And so it was a lot of conversations back and forth, but we figured it out. Obviously, there's a notice that you have to give us, and we have to have the ability to get the money out of that real estate to be able to give it back. So there's lots of moving parts, but the option is there for peace of mind. So we do that. We also created an income path and a growth path, because some people are at a stage of life where money matters. They actually want the income some people like me at a stage of life where I just want it to grow, and I want to grow as fast as possible, so I invest as much as possible, get the highest return I can, and then I want it to continue to compound, to accelerate that growth. And use time from my side.
Keith Weinhold 41:52
What are the minimum investment amounts? And can you use your 401, k or IRA to invest?
Dani Lynn Robison 41:57
Yes, so $25,000 is the minimum. So again, we're keeping it accessible to everybody, and you can use your retirement accounts to invest some 401 ks have different rules. Our team can walk you through what those rules are and what to ask in order to determine how to deploy those funds into our investment opportunities.
Keith Weinhold 42:13
Do you put your own skin in the game on these investments? Tell us about that. I mean, I already know the answer, but let the audience know,
Dani Lynn Robison 42:21
yes, 100% in fact, flip and I, we invest one yes, flip is my husband. Thank you for you and I have been friends for so long. You know who flip is, but my husband flip and I, yeah, we invest 100% in everything that we do. In fact, all of our money is we used to be a little diversified, and we forget that we're just investing in us and our businesses and our real estate. So we do have skin in the game, not just us, our company as well, invest alongside. So we're along the ride with you guys. We believe in this as much as everybody else, and that boils down to character. There's something that I tell people when they're talking to people that they're going to invest in what's most important when I'm on the phone, people say, Danny, what should I have asked that I didn't ask, and sometimes they don't ask that. And so I tell them to I said, this isn't the question you should have asked. And so I always tell people I answer in different ways depending on what we're talking about, but I talk about character. I said, I don't care about my returns when I'm investing. I care about the person I'm investing in, right? That comes first before anything else. Because I don't care if you told me I could get 20% possibly, but if you run away from a deal that goes bad, then I just lost everything. And I could have invested at a lower return with somebody who actually had character and who was going to stay in the fight no matter what happens. And I think we talked about this on our last podcast, Keith, just about real estate and what's happening in the industry right now, and that there are deals that have gone bad, and I've personally had a partner of mine want to leave investors hanging. We bought the deal out from under them. We just said, Nope, you guys can leave. We're taking over. Because I'm never, ever going to do that to my investors. And I think our very first podcast with you, it was talking about the worst deal that we had in a private home. Yeah, our private lender who lend it honest, never even knew what happened to that property, because I paid them everything that they were owed, plus their interest. And they didn't have to know. I would have transparently told them what was going on. But to me, it's just like, this is just my job. This is my duty. Like you trusted me with your money. I'm going to make sure you get everything back. So when I talk about these stories, it's not really stories that I talk about a whole lot, except for that, I relate it to character, and I think it's important for people to know this is one of the questions you should know to ask. It's not just what are you investing in? It's not just what's your track record. It's not just what's your returns. It's who are you as a person, and things are going to go wrong, right? This is life. This is real estate. All you do know is it. Don't know that's right. So things will go wrong. What happens when things go wrong? What happens to the company? What happens to you? What happens to the investors? That is so incredibly important,
Keith Weinhold 44:48
those that put together private money lending offerings like freedom family investments, they can't say that something is a guaranteed return, even though they have a 100% track. Record of investor payouts that's also on time. It's regulated by the SEC the Securities and Exchange Commission. And in the SEC world, guarantee is not a word that you can use. You get a preferred return, meaning that the investor gets paid first and FFI gets paid last, even though the ones putting this all together? Well, Danny Lynn, tell us more about calm capital. I know that's the philosophy behind your upcoming book.
Dani Lynn Robison 45:31
Yeah, absolutely. So I love the conversation around calm capital because it refers to the whole boring investor idea, right? And letting your money sit and work for you over time, and that's how real wealth is built. So I believe capital preservation should come before aggressive protections. I believe downside protection should come before upside stories. I believe that you don't build and create a strategy around good times. You build and create strategies around all times, no matter what is happening in the market, and that's why needs based real estate is the thing that we stand behind the most. Because we know, no matter what this is, what people are going to prioritize. And I don't have a crystal ball. None of us do. So over the next 510, years, I'm going to invest in what I know, and I'm going to invest in things that I know will always be there and that people are always going to pay for. And that's why I sleep at night. That's why my investors sleep at night, because we are getting our time back. And that's really the philosophy around what this book is about, is just that calm money doesn't panic, because when the market panics, calm investors still win.
Keith Weinhold 46:35
Yeah, I love the premise of calm money. Well, Danny Lynn, investors and our GRE listeners have benefited from you guys's capital architecture call, a free 20 minute session that your team helps people with tell us about that and how they can learn more.
Dani Lynn Robison 46:52
Yeah, absolutely. So the word I chose for this is window. So you'll text the word window to 66 866, and the capital architecture call is going to do five things. It's a 20 minute session. It's not a sales call. There's no obligation. Doesn't matter whether you invest with us or not, but it's going to do five things for you. First, it's going to show you how to protect and grow your capital. So this is a framework that maps out exactly how your capital should be allocated based on where you're at right now we're going to ask you if you're in preservation mode or growth mode, or maybe a balance of both. So we're just going to help you find that clarity. Second, we're going to look at your taxes. We're not CPAs and we're not tax professionals. So they said, Well, you have high level overview, but there's two ways to build wealth, right? You make money or you keep more of it. So we're going to look at the keep more of it piece and see where some of that is disappearing, and how you can legally structure things to be able to keep more of that and allow that money to be working for you. And then third, we're going to teach you our it's called the Magnus Investment Framework. My marketing team came up with that word. I always laugh when I say it, Magnus, honestly, yeah, it's honestly just the lens on how we're choosing our markets and the asset classes that we enter and which ones we stay away from. A lot of that we talked about today, because it's the conversation that I'm really having and talking about a lot. Fourth is just priority access. This just means a lot of investors are always looking for the inside track, right? They want to know, where do I find these market opportunities? Where do I find the opportunities that everybody else is trusting and I don't know how to navigate my way through the noise. So just by jumping on this call, you're going to be added to our list, and it just means you're going to get first access to anything that we're doing, or anything we're talking about or exploring that also rolls into the last one. This is just for a select few people. We do have $1 amount of a qualification, dollar amount of whether you can do this? And this is just ownership partner program. So I'm actually taking people and taking calls where they say, Danny, I want to own a property with you. So again, it has to make sense for us to actually do that, so we're looking at higher dollar commitments. But if that's of interest to you, when you jump on a call to say, I want to talk about the ownership partner program, they'll find out exactly where you're at, what you want to invest, if it's actually going to meet your goals, and then if it does, then you'll jump on a call with me and we'll talk about the deals that we're looking at. This is really where you get into the point where you get the massive tax advantages, right? Because you're an actual partner with us on the deal. And so the goal with all of this is just to be specific, because you and I can be talking about generalities all we want, but it comes down to your specific situation, right? Your specific goals. What's going on in your life? Where are you right now? Where do you want to go? And so that's what we do on that call text window to 66866,
Keith Weinhold 49:43
for you the listener, just think about if these insights can be personalized for your own situation. That's what you can get on a capital architecture call. And really everything is built around your specific income, your goals, your situation, you. And every person is going to walk away with more clarity than what they came in with, whether they invest with freedom or not. Yeah, it is a very approachable 25k minimum. Consider booking a free 20 minute capital architecture call just text window to 66 866, Danny. A lot of insights here that every investor is going to find helpful. It's been great having you back on the show. Thank you,
Dani Lynn Robison 50:25
Keith, it was pleasure being here.
Keith Weinhold 50:32
Yeah, the life stages of investor, operator, turnkey investor, and then allocator, with the first one operator. You might think you have to be one first, but you don't. Then turnkey investor. Turnkey investor is a nice place to be. That's a real sweet spot for a lot of people. You get all the real estate pays five ways, advantages of direct ownership plus control. And then finally, the passive investor, the most passive, the allocator. So nice breakdown from Danny Lynn Robinson today, yeah, one way they help is offering freedom. Note, so what I do is, by making a loan to them, I get a stable return with the passivity of a mutual fund, but it's certainly not a mutual fund, and I get moderately good liquidity too, fixed returns, cash flow. This is a cash on cash return of 8% 10% 12% and up to 14% depending on what your liquidity needs are, and more largely backed by this needs based real estate, workforce housing, Senior Living and self storage. If you think that they can help you with that or something else, it can be a good use of your time to book a quick capital architecture. Call with them. Just text the word window to 66 866, text, window to 66 866, now, next week, it's milestone episode, 600 debt is the American dream. Until then, I'm your host. Keith Weinhold, don't quit your Daydream.
Keith Weinhold 52:16
Nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of get rich Education LLC, exclusively
Keith Weinhold 52:44
The preceding program was brought to you by your home for wealth, building, get richeducation.com