8/22/10: What is Your Risk Paradigm? A Life or Debt Decision
Protecting your money in today’s highly uncertain economy is surely very challenging. Remember when real estate equity and bank accounts were considered among the SAFEST places to keep your savings? Today, real estate equity has disappeared – and for many people even getting access to whatever equity they still have is next to impossible. Boy, do we miss those equity lines of credit with their checkbooks and debit cards!
And even though you can still write checks on your cash deposits at a bank, with record bank failures even that old saying “sure as money in the bank” seems a little outdated. Add horribly low interest rates and, to compound the injury, taxes on your meager interest earnings, it’s enough to make you wonder what this financial world is coming to.
Well, we have good news. There’s a new way to look at an old product – one that is time tested and has survived its fair share of economic turmoil. And we got such a positive response to our first foray into this topic, we decided to re-visit it with a new guest.
In the radio lifeboat for another voyage into broadcasting brilliance:
- Host and head lifeguard, Robert Helms
- Co-host and lifeboat inflater, Russell Gray
- Seasoned sailer of stormy economic seas, the Godfather of Real Estate, Bob Helms
- Special guest, “infinite banking” expert, Patrick Donohoe
Right out of the gate we need to set the table, which is no small task with the lifeboat bobbing on the waves: what does life insurance have to do with real estate investing? Think about what a bank account has to do with real estate investing and you’re on the right track. But unlike a bank account, our guest explains that certain types of life insurance – thought greatly misunderstood – offer far greater flexibility than bank accounts. And though they aren’t FDIC insured, insurance companies are arguably more stable and conservatively run. Unlike banks right now, you don’t hear a lot about record number of life insurance companies failing.
We also address why so many CONSUMER financial gurus are down on cash value life insurance, yet corporations like Wells Fargo and Wal-Mart buy tons of it. Could it be there are BUSINESS purposes that make it very useful for BUSINESS people? We say all the time that real estate investing is a business, so it makes good sense to see how businesses are using this financial tool. For example, how’d you like you to take a tax deduction for making a deposit in your bank account? Hmmm….that’s an interesting concept! What about getting a loan against your equity without having to qualify? Try doing that with a property! And unlike property, the value isn’t determined by market forces, so your equity doesn’t disappear in a market downturn.
The point of this episode is that insurance can do a lot more than manage risk and pay a benefit. Our job is to expose you to some of the possibilities. Your mission, should you choose to accept it, is to explore those possibilities, learn how to use this powerful tool, and decide when and where to use it to advance your real estate investing program. It seems the economic storm isn’t over yet, so it might be a good idea to know how to operate the lifeboat. It’s a matter of life and debt.
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8/15/10: How Capitalism Will Save Us – An Interview with Steve Forbes
The Real Estate Guys™ sit down and talk with Steve Forbes about jobs, the economy and real estate.
We don’t know about you, but any time a billionaire, a CEO of a major company, a best selling author or a legit presidential candidate is willing to sit down and chat, our response is always, “Yes!”. In this case, our special guest for this episode, Steve Forbes, is ALL of those things wrapped into one. So we’re super jazzed to bring this exclusive interview to you.
In the broadcast booth at the Freedom Fest conference in Las Vegas:
- Your Host and interviewer extraordinaire, Robert Helms
- The just-happy-to-be-here Co-host, Russell Gray
- Special guest, Forbes Magazine CEO, Steve Forbes
Mr. Forbes was the keynote speaker at the Freedom Fest conference and remained in attendance for the entire event. In spite of a recent neck surgery, he was very accommodating and so Robert was able to sit down with Mr. Forbes for an impromptu interview.
Steve Forbes with Russ and Robert at Freedom Fest. Russ wrestled Steve into doing the interview, which broke Russ' glasses and injured Steve's neck. But the interview went well and we were all smiles afterwards.
We decided to ask him about his latest book, Why Capitalism Will Save Us – Why Free People and Free Markets are the Best Answer in Today’s Economy. Mr. Forbes’ thesis is that too much government is bad for business because it increases costs, diminishes productivity and takes too many resources away from creating jobs for an ever-growing population. He calls for “sensible rules of the road” to provide a basic framework in which free people can conduct business. Of course, the great debate is over what’s “sensible”. His position is that less is more.
What we’re really interested in is jobs. Jobs are where our tenants get their rent money. It’s where home buyers get the income stream to make the mortgage payments that prop up the property values that create passive equity. Jobs are near the top of our due diligence check list when evaluating a market to invest in. It’s one of the reasons we like Dallas right now. Among U.S. markets, it’s doing pretty well. Ironically, another great job market is Washington DC, but if there’s a changing of the guard over the next couple of elections, that could change. But we digress…
So Mr. Forbes shares his thoughts on the economy, job creation and the role of government in real estate, specifically Fannie Mae and Freddie Mac. In his position as the CEO and editor-in-chief of Forbes Magazine, he gets to talk with many of people who shape, interpret and respond to public policy. We really enjoyed our time with him and hope you will too!
On a side note, Steve Forbes is the nicest billionaire we’ve ever interviewed. Actually, he’s the only billionaire we’ve ever interviewed. But he’s still a very nice guy. So, if you’re a billionaire and want to come on the show and be nice to us, just give us a call. Our door is always open. 
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7/4/10: Profiting from Your Vacation – Exploring New Markets in Your Bathing Suit
Most people don’t get into real estate investing because they like tenants, toilets and all the tribulations you go through. And most of the time, they don’t get into properties they would like to live in or visit on vacation. In fact, most investors would be happy if they never saw their properties. That’s probably why stock investing is so popular. You just buy a line item on your brokerage statement. You never visit the company or meet the management. It’s all very sterile and anesthetized. Maybe that’s why you almost can’t feel it when the stock market gives you a networthectomy. But we digress (how unusual).
Anyway, with summer time in full swing and people heading off for a well-deserved vacation, we thought it would be refreshing to talk about how to combine real estate business with vacationing pleasure.
In the radio mini-van, headed to the beach of broadcasting for fun in the sun and investing too:
- Your host and mini-van driver, Robert Helms
- Captain Speedo, Russell Gray
- The Godfather of Real Estate, Bob “Board Shorts” Helms
Before we hit the road of conversation we do a quick check of the packing list. Did we remember to pack our investor mindset? What about our notebook to keep track of our ideas, conversations and those all important (potentially) tax-deductible expenses?
We’re all good, so off we go!
Since most people don’t vacation in C-class neighborhoods, we start our conversation on the idea of resort area investing. But as soon as we jump out of the mini-van, we are faced with that ugly limiting belief, “I can’t afford it”. It’s easy to look at real estate in a beautiful area and disqualify yourself before you even get started. So we talk about how to push through the traffic of doubt in one’s mind by asking the question, “How can I afford it?”
We decide to ride this train of thought and talk about the importance of getting the right answers and advisors, by learning how to ask the right questions. Bad questions yield bad answers. It’s like, “Which Speedo looks best on Russ?” That’s a bad question (and worse visual) with no good answer.
Of course, we can’t miss the opportunity for some shameless self-promotion, so we hang a u-turn on the notion of making one’s vacation an opportunity to look for real estate. What about the idea of using a real estate trip as a vacation? Many of our listeners have come with us on our Investor Summit at Sea™ or field trips to Belize, Cabo San Lucas or other fun places we’ve gone. Even though the main purpose of the trip is to look at real estate, is it against the rules to have fun? So, when time and budget is limited, it just makes good sense to leverage your vacation / real estate “research and development” budgets.
We have a fun time with this show. We think you’ll like it too!
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6/27/10: Cashing In on the Changing Retail Market
Retail real estate across the country has been mauled by the recent bear market. Many large retail centers are vacant and dilapidated, while many more are under performing. What’s next for retail? More importantly, what’s the opportunity? To find out, The Real Estate Guys™ call on a big deal hunter who has over 30 years and billions of dollars of experience!
On safari in the studio for this broadcast:
- Driving the jeep in his khaki’s and bush jacket, host Robert Helms
- Pushing the jeep in his leopard skin loin cloth, co-host Russell Gray
- Riding shotgun and snacking on frikkadels, the Godfather of Real Estate, Bob Helms
- Big deal hunter, special guest Tom Morris
When you enter the jungle of real estate investing to hunt for opportunity, you never know what challenges will cross your path. Many obstacles and dangers can be avoided. Others must be met head on. Of course, when you’re hunting, your objective is to locate the prey and subdue it. In other words, there’s risk involved.
Shooting fish in a barrel or hunting rabbits is one level of risk…and one level of reward. Going after the big opportunities often entails a higher level of risk and requires a higher level of skill and experience. That’s why most investors are well-advised to start small. It’s also a really good idea to be mentored by more experienced hunters before taking on the big game.
So you can imagine how excited we were when we first met Tom Morris. He’s been hunting big time real estate opportunity for over 30 years and after billions of dollars of deals, he’s telling us that now is one of the greatest times ever to be a real estate investor. Really? Okay, we’re listening!
Although he’s very experienced in all types of real estate, Tom’s love is retail. We’re talking BIG TIME retail – as in shopping malls and retail centers with hundreds of thousands of square feet (on the small side)! Tom’s been involved in mall projects with millions of square feet and hundreds of retail tenants in a single project. Wow! THAT’S big game. Of course, if a big deal turns on you it can devour you very quickly, so you better know what you’re doing! Fortunately, Tom tells us there are many things you can do to mitigate risk.
We start quizzing Tom about the state of retail in the wake of the Great Recession. What are the problems? What are the causes? Where are the opportunities? We were SHOCKED to hear how BIG the discounts are on distressed retail assets. It’s AMAZING how, with relatively little money, you can acquire assets with HUGE UPSIDE potential. (Sorry for all the caps. We’re just EXCITED!).
BUT…(and it’s a big but), you better have a plan. And you better have connections. And you better be able to think outside the big box. If you do, then there’s BIG money to be made!
Tom shares with us some of the creative strategies he’s currently employing to acquire and re-hab distressed retail properties. Even if you don’t have plans to be a mall mogul, the principles Tom employs are applicable to other types of real estate. Besides, any time someone with 30 years and billions of dollars of experience wants to share their wisdom, we think it’s a really smart idea to listen. Our attentiveness is rewarded when Tom reveals the single most important component of his success and the #1 investment of his career.
Not everyone is able to chit chat with a big time investor. Tom doesn’t do seminars, write books or sell boot camps. He’s just out in the real world doing the real thing. That’s why you have The Real Estate Guys™! Our mission is to hunt down big brains, powerful ideas and great resources that help you succeed. Your job is to listen, learn and take action. Plus, we really appreciate it when you tell all your friends about The Real Estate Guys™. Enjoy!
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