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Get a market update. Next, I answer your listener questions: 1: How do I start if I know nothing about real estate? 2: What’s better: existing or new construction property? 3: How do I identify an “up-and-coming” neighborhood? 4: How do I raise the rent without losing the tenant? 5: What if there’s a recession?  I bring you today’s show from Anchorage, AK. Next week, we discuss four-plexes. The following week, declining interest rates and more Fed money-printing. 1) My FREE E-book and Newsletter at: GetRichEducation.com/Book 2) Your actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my best-selling paperback: getbook.at/7moneymyths __________________   Resources mentioned: Credit Score help: MyFico.com Neighborhood Research: NeighborhoodScout.com City-Data.com Mortgage Loans: RidgeLendingGroup.com Turnkey Real Estate: NoradaRealEstate.com eQRP: Text “QRP” to 72000 or: TotalControlFinancial.com JWB New Construction Turnkey: NewConstructionTurnkey.com Best Financial Education: GetRichEducation.com Find Properties: GREturnkey.com Follow us on Instagram: @getricheducation   Welcome to Get Rich Education, I’m your host Keith Weinhold.   It’s YOUR listener questions today; What’s The Best Guidance For Beginners, Comparing New Construction vs. Existing Construction Property, How To Identify An Up-And-Coming Neighborhood, How To Raise The Rent Without Losing Your Tenant, and How To Position Yourself In The Event Of A Recession.    All today, on Get Rich Education.  ______________________   Welcome to Get Rich Education! I’m your host, Keith Weinhold with Episode 265 and I’m answering your listener questions today.    First, let’s get you up-to-speed with our asset Class Whiparound.    The Fed lowered rates last Wednesday by a quarter-point again.   It IS their third quarter-point rate cut this year, bringing the upper bound of the Federal Funds rate down to 1.75%   Just before air time here:   Year-to-date, real estate is up 3.5% per the Freddie Mac Housing Price Index. The Case-Shiller National Home Price Index is at right about that same 3.5% appreciation rate.   Next, the Freddie Mac numbers show us 30-year and 15-year mortgage interest rates are just a touch more than 1% lower than they were one year ago.   Yes, your COST of money is cheaper now than it was either one year ago OR two years ago.   The stock market has been thriving. The S&P 500 Index is up more than 21% YTD. It’s flirting with all-time highs, as its over 3,000 points now.   Oil prices have not done so well, Down 17% year-over-year    Oppositely, Gold has thrived as it’s up 17% just since the beginning of the year.   Last week, the Commerce Department told us that GDP expanded at an annual rate of 1.9% through the 3rd quarter, falling slightly from 2% a quarter earlier.   The rate of dollar inflation is currently 1.7% YOY as measured by the Consumer Price Index, which is tracked and published by the government’s Bureau Of Labor Statistics.   With the way that they calculate inflation, I think it’s a little hard to believe that the true, diminished purchasing power of the dollar is only 1.7% per annum.    I think that makes about as much sense as turning back the clocks back an hour like we all did the other night, personally.   That’s our Asset Class Whiparound like we do here just once in a while.   Let’s start with the first listener question … and I usually start off with a more beginner-type question - like this first one - and advance from there.     This question comes from Jackie in Esko, Minnesota.   Keith, I love your show. I’m 25 years old, just a year out of college with $22,000 in student loan debt, and I just began listening to you three weeks ago.   Now I’m going back to listen from the very beginning, Episode 1.    What is the best way for me to begin if I know absolutely nothing about RE?    Thanks for the question, Jackie.   Well, you’re on the right track with your learning by starting with Episode 1 of the Get Rich Education podcast.    Bigger Pockets has some very well-populated FORUM that’s good for your learning.   I’d also say, work on your credit score WHILE you’re learning about real estate investing. That’s important in a credit-based asset like real estate.   Learn about what it takes to improve your FICO score at myfico.com   Now, for a beginner, yes, it’s probably not the long-term answer that you want.    But it can be helpful to have a W-2 job … at least in the short-term … before you go onto to dominate your own real estate empire.   I mean … I had a day job for years. Not only does this income help you qualify for loans, but let’s look at some ideal day jobs that can help you advance your real estate CAREER at the same time.   Now Jackie, I don’t know what your college degree was in … but if you’re a true devotee to real estate, consider that, even if you have to accept less income ... there are day jobs that can actually align with your path toward being a real estate investor.   You could become a Property Manager for a management company. Now, that is a tough job but you will learn remarkable things about how real estate works from the inside.  Property Management is perhaps the LEAST-RESPECTED job in all of real estate, but it’s perhaps the most important … at the same time and the manager is probably the investor’s #1 team member.  Other day jobs that can help a real estate investor are:  Being an Asset Manager, Financial Analyst, Real Estate Agent (of course), or a Mortgage Loan Officer. With any of those related jobs, you’re going to learn about things like sales, marketing, pricing, maintenance & repair, capital improvements, and bookkeeping. There are other benefits to making your day job … real estate-related.  You’re going to get to know other people in the business - these could be your future collaborators. You’ll get to attend industry tradeshows. And of course, you’ll get substantial education and training.  So, that’s just one course to consider for a beginning real estate investor. If you’ve got to work a day job before you build your empire anyway, it might as well align with what you’re truly MORE interested in long-term … yes, perhaps … even if you need to take a short-term pay hit. It’s just another angle for you to consider, Jackie. If you want one all-encompassing podcast episode that tells a beginner like you as much as you need to know as possible … all in less than one hour - check out GRE Episode 249, published just a few months ago.    That episode is titled, “The Beginner’s Real Estate Investing Audio Guide” and it’s our most popular episode that I’ve done ALL year. Again, it’s Episode 249.    Thanks for the question, Jackie.   The next question comes from Tate in Providence, Rhode Island.   Tate says, “Keith, I notice that today, more providers offer new construction investment property, but it usually doesn’t cash flow like existing properties do.   Is it worth buying new construction for the lower maintenance costs involved?” Thanks, Tate.   Alright Tate, let’s compare the pros & cons of buying Brand New Construction Rental Property vs. Existing Construction.    And, this is a top-of-mind subject for me because I just wrote about this in Get Rich Education’s e-mail newsletter two weeks ago.    What’s better: existing or new construction rental property?   Like with most real estate answers: “It depends.”   But because a “2-word answer” like “It depents” is really dissatisfying, let’s expand on this.    There are at least 8 different criteria for each type.   Before we look at your trade-offs with each type, understand that new construction turnkey property was almost non-existent until recently.   That’s because during the housing crisis of 2007 – 2010, home prices fell far below replacement cost.   Therefore, builders couldn’t make new developments feasible until existing property prices rose in this decade that we’ve had since the Great Recession.   There was also an oversupply of housing back then. Absorption of existing housing took time before new construction made sense again.   And supply has definitely been absorbed.   In SO MANY markets today, the housing that makes the best rentals is undersupplied.   That’s why new construction makes sense again - and why you’ve gradually seen more new construction income property be offered by providers these past few years.   Let’s look at the advantages of both existing and new construction … and these are certainly broad generalizations ...   First, with EXISTING Construction property - we’re talking seasoned properties here:   Lower purchase price.   Better cash flow. This is especially true in the early years. The early dollars are your most important as an investor.   Established property. You’re pretty assured that the foundation won’t settle. You know that the topsoil grows grass.   With EXISTING property, you’re in an established neighborhood. You already know who the neighbors are.   More safety in your investment with existing property. You see, because residents have lived in established neighborhoods longer, they’re more likely to have substantial equity in their property.   Now, why would you care if your neighbors next to your income property hold higher equity positions?   If there’s a recession, this means that residents are less likely to walk away from their home. This hedges against foreclosures and a valuation downdrain - and this domino effect like we saw in the housing crisis 10 years ago.   With EXISTING PROPERTY, you also have lower property taxes. Though there are also plenty of cases where this isn’t true, because an existing property could also mean it’s closer to the city center.   Location. Because you’re often closer to parks and city centers … residents have shorter commute times. This aids in both attracting & retaining your tenant.   Availability. In turnkey investment property, there are more existing structures available than new construction property.   You c