Why The Wealthy Never Follow The 4% Rule | Zach Richards
6/26/202635 min
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Most people have been told the same thing their entire life, put your money in a 401k, invest in the stock market, follow the 4% rule, and hope you don't outlive your money. In this episode of The M.O.R.E. Show, Justin Colby sits down with Zach Richards, co-founder of REI Capital and private lender to real estate investors, to break down why savvy investors are moving money out of volatile markets and into real estate-backed private lending, how hard money lenders are failing borrowers at the worst possible moment, and exactly what real estate investors need to qualify for and successfully use private money on their deals.
KEY TOPICS COVERED:
- Why private lending is one of the most overlooked investment strategies most people never hear about.
- How stock market volatility is driving investors toward consistent real estate-backed returns.
- Why hard money lenders are changing terms at the last minute and how private lenders are different.
- What real estate investors need to qualify for private money and how the process actually works.
- How to underwrite a flip deal and what private lenders are really looking for.
- The 4% rule debunked and why real estate-backed lending beats traditional retirement strategies.
️ TIMESTAMPS:
00:00 — The 4% rule and why private lending is a better way
00:30 — Introduction: Zach Richards, co-founder of REI Capital
01:14 — How REI Capital started and evolved into a fund
02:26 — Why stock market volatility is pushing investors to private lending
03:41 — Access creates opportunity, Justin's mastermind insight
04:09 — How private lending works on both the borrower and investor side
07:00 — What makes a good private lending deal for borrowers
15:00 — How to qualify for private money, documents, comps, and scope of work
25:00 — Downside protection: what happens when rehab budgets go over
32:00 — Where the real pain is in the market right now
34:00 — Why single family flip slowdowns are a return to normal not a crash
35:00 — How to connect with Zach Richards and REI Capital
Connect with Zach Richards:
Website: https://reicapitalguys.com/
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Clips
Transcript preview
First 90 secondsSpeaker 10:00
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Zach Richards· Guest1:11
A lot of people don't even know that private lending is a thing. Everybody's told, "Yeah, take your 401[k], invest it in the stock market, and do that till you retire, and then live off 4% of your portfolio. You know, follow the 4% rule, and then hope you don't outlive your money."
Justin Colby· Host1:29
Mm-hmm.
Zach Richards· Guest1:29
And that's