9/27/09: The Real Estate Guys Answer Your Questions
Every day we get emails from our listeners. Some like to tell us how awesome we are (oh, go on!), but most have questions. We’re working on some new ways to be able to be more responsive. So keep those emails coming!
For this week’s show, we decided to grab a few question out of the email in box and talk about them on the air. Joining host Robert Helms in studio are his trusty sidekick, Russell Gray and “The Godfather of Real Estate” Bob Helms.
We kicked off the show commenting on Ben Bernanke’s pronouncement that “technically speaking, the recession is over.” Yippee! Right?!?
After having fun with that, we reached into the mail bag and pulled out a question about which U.S. markets are “best” for appreciation right now. Our crystal ball wasn’t warmed up, so we chatted on this one awhile. It’s a question that comes up all the time and though easy to ask, it’s hard to answer. So we talked about the conditions we look for to cause appreciation, how today’s economic environment affect them, and some specific markets we’re watching.
Another question that is salient to the times was about the availability of financing in today’s market. There are certain product segments and demographics that can’t find financing, while others have abundant financing available. Obviously, when you know where the money is flowing and why, you can position yourself in its path and do well. Having just been at the Rich Dad Real Estate Summit with Ken McElroy, Robert Kiyosaki and several veterans of investing and finance, we had some fresh insights to share.
The next question was also all too common in today’s economy. “I have a property that is upside down with negative cash flow, what should I do?” As Kenny Rogers sang, “You gotta know when to hold ‘em, know when to fold ‘em, know when to walk away, know when to run.” Lots of people are struggling with the issue of “strategic defaults” and its ramifications. (Side note: The Real Estate Guys wrote a free 18 page report What You MUST Know Before Attempting a Loan Workout to help people in this situation understand their options. To get a copy, just send an email to workout@realestateguysradio.com)
The discussion of what to do with an upside down negative cash flow property had us reflecting on the previous discussion of where’s the appreciation most likely. It also lead directly into another topic: The Price of Maintaining You Good Credit. Good credit has never been more important, but if you have lots of negative equity and negative cash flow, how much is it really costing you to maintain it? This is a very timely topic and we tossed around our thoughts on the subject.
Send your questions to The Real Estate Guys
Listen to this Broadcast:
Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.
The Rich Dad Real Estate Summit
9/13/09 Scottsdale, AZ – Nearly 150 enthusiastic people gathered in Scottsdale for the 2 day Rich Dad Real Estate Summit hosted by best selling author Robert Kiyosaki and conducted by Rich Dad Advisor and real estate entrepreneur Ken McElroy. The Real Estate Guys were on hand to not only observe, but participate in this inaugural boot camp which is dedicated to teaching active and aspiring real estate investors how to succeed in the “new” real estate economy.
The event featured a host of highly qualified experts in various aspects of real estate investment including property management, financing, deal sourcing and analysis, and taxation. The event started at 9 am on Saturday morning and ran well into the evening. We didn’t get back to our hotel room (at the very nice Scottsdale Plaza Resort) until close to 9 pm, but even then we weren’t done! We had 5 different real life investment deals to review in preparation for the next day when we would divide into team and prepare and present offer letters to the panel.
Though it sounds intense, the Rich Dad team did a great job keeping the energy up with lively music, regular breaks with refreshments provided, and the trademark conversational breaks where we would discuss the topic at hand with other students sitting at our table. Not only did this break up the monotony of lecture, but it really helped reinforce our understanding of the material. Teaching is a very effective learning tool. In fact, when we were talking with Robert Kiyosaki during a recording session on Monday, he said one of the reasons he works so hard teaching is because he learns so much!
In the afternoon of the 2nd day, the crowd was divided into teams and each team was assigned one of the case study properties on which to write a Letter of Intent (LOI). It was like being on The Apprentice! The pressure was mounting to finish the analysis and craft an offer that would be strong enough to win, but without overpaying for the property. As the announcer counted down the time, the tension mounted. People were running to the front of the room to submit their offer before the time ran out!
A representative from each team was called up to sit with their competitors in front of the panel of judges. One by one, each had just 2 minutes to present the offer. Then the panel would begin to question and negotiate. Having been through this process many times ourselves, we can tell you is that very realistic!
There were far more lessons than could ever be contained in this short report, but even with all of the experience we have in the real world of real estate, The Real Estate Guys definitely discovered some new things. Plus, we made lots of new friends!
Overall, we thought it was a great event – well organized, well produced and lots of fun. We can’t wait to go to the next one!
The REAL Book of Real Estate by Robert Kiyosaki and Friends
The REAL Book of Real Estate
by Robert Kiyosaki and 22 Contributing Co-Authors
He’s back.
Robert Kiyosaki, author of Rich Dad Poor Dad, one of the best selling books in history, is back talking about real 
estate! Why now? He says the rules have changed and the numbers make sense again.
In The REAL Book of Real Estate, Kiyosaki compiles real estate investing wisdom from 22 veteran experts. The Real Estate Guys had a chance to talk personally with Mr. K. about this book and the unusual timing of its release. You would think that a book on real estate investing would be a hard sell in this post meltdown world. And it is.
But the book was released now to help investors who’ve only known boom times. It shares the knowledge and perspectives of veterans who’ve survived and thrived through previous real estate market cycles (which is lesson #1: real estate cycles, it doesn’t disappear). If real estate isn’t “over”, then the question remains: where are the opportunities and how can I find or create them? That’s what this book addresses. It might be a bad time to sell a book on real estate investing, but that might make it a great time to pick up bargain properties. This book will teach you many of the things you need to know.
What we like best about it is that it’s immensely readable. It isn’t a book about theory. It’s very real world practical. And you can start anywhere, as each author’s work is a stand alone discussion about their particular area of expertise. It’s as much a reference manual as an educational work.
We like it. We’ve been around real estate for awhile and we learned a lot. We think you will too.
Order your copy today – and be sure to visit the archives to listen to The Real Estate Guys’ exclusive interviews with Robert Kiyosaki and many of his contributing co-authors. Let us know what you think!
