8/8/10: Don’t Say I Didn’t Warn You! Peter Schiff Reveals How He Predicted the Crash

WHO KNEW the crash was coming? Lots of people have been reverse engineering the causes of the financial crisis.  It’s easy(er) to be smart when operating from hindsight.  But when someone gets it right for the right reasons BEFORE the event occurs…well, that’s just impressive.

Peter Schiff is one of the few guys who called it way in advance. Not only that, but he put it in writing in his 2006 book Crash Proof (the updated version Crash Proof 2.0 is now on our recommended reading list).

Even more impressive is that Schiff appeared on a whole host of TV shows sounding the warning.  But people literally LAUGHED at him, as you’ll see in the 10 minute video below.  And there are many other videos of Peter aggressively debating all kinds of people – including next week’s guest on The Real Estate Guys™ Radio Show, Steve Forbes.

Featured on this week’s episode:

  • Your host, Robert Helms
  • Co-host, Russell Gray
  • Fund manager, economist, author and outspoken commentator, Peter Schiff

Politics aside (Schiff is running for the Republican nomination for Senate in Connecticut –  with the endorsement of Steve Forbes!), considering what Peter predicted and what actually happened,  how can you not be at least curious?   It was that curiosity that had us go to Las Vegas for Freedom Fest in July, where we were exposed to many economists who follow the Austrian school of thought.  There isn’t any way in a blog post to explain all we learned, but a recommended homework assignment is to review the major tenets of the Austrian viewpoint versus Keynesian.  We think you’ll find it very interesting, if not highly enlightening!

What we’re really interested in is being able to best anticipate macroeconomic influences that are likely to impact the value of our real estate, the strength of the jobs market, the growth of wages (which fuels growth in rents); and the cost and availability of loans.  We don’t care if you’re Democrat, Republican, Libertarian, fans of rap or a drinker of light beer (okay, we find the last one a little offensive) -if you have something to say that proves true and makes sense, we’re interested.  Peter Schiff is a guy that has proven true and seems to makes sense.

So for this entire show, we ask Peter to tell us to our face how he knew the crisis was coming and what’s going to happen next.  Based on his track record, we think he’s a guy worth listening to.  Check it out and let us know what YOU think!

The Real Estate Guys™ Radio Show provides ideas, perspectives and resources to help real estate investors succeed.

This podcast brought to you in part by Audible.com.  To download a FREE audiobook of your choice, click here.

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8/1/10: Economics, Politics and Real Estate – Interviews from Freedom Fest 2010

If you’re one of those who take The Real Estate Guys™ to the gym, make sure you carbo load first! This one’s a whopper!  Our radio audience only got an hour, but the podcast audience gets the whole enchilada.  That way whether you like American or Mexican, there’s something for everyone.

A few weeks back, we went to Las Vegas for the 7th Annual Freedom Fest conference.  This was our first time and we weren’t sure what to expect.  But after our previous interview with event founder, economist Mark Skousen, we thought it would be worthwhile.  It turned out even better than we thought!

After being near the epicenter of the financial earthquake which rocked the real estate portfolios of even the most experienced investors, we’ve put a big emphasis on studying economics.  Who cares if you’re expert at fixing up properties, managing tenants or putting together syndications if property values are crashing, tenants don’t have jobs, loans aren’t available, and people are too scared to act?

So we started looking for people who saw it coming, put their predictions in writing and got it right for the right reasons.  Hindsight’s often 20/20, but seeing the storm coming while there’s still time to shutter the windows is better.  You might not be able to avoid bad economic weather, but with advance notice at least you can prepare!

We looked at the lineup of speakers at Freedom Fest and decided this would surely be an eye-opening experience. We were especially excited about Peter Schiff, author of Crash Proof 2.0 (a highly recommended read!).  Schiff called the crisis for the right reasons – and way ahead of time.  We’re happy to say we got a lengthy interview with Mr. Schiff to see what he’s thinking now – which is the feature of our next show.

While we’re boasting about awesome interviews, we also had a chance to talk with billionaire CEO of Forbes Magazine and former Presidential candidate, Steve Forbes.  That interview is coming up in a couple of weeks, so stay tuned!  The best way to be sure you don’t miss any of our exciting episodes is to subscribe to our podcast via iTunes (shameless plug). ;-)

Today’s episode is about talking to LOTS of people! It was like one of those speed dating sessions.  Robert sat at the microphone from early morning to late at night, and Russ rounded up a long line of interesting people to interview.

Featured in this episode of The Real Estate Guys™ Radio Show:

  • Your host, Robert Helms
  • Co-host and cat herder, Russell Gray

And a long parade of very special guests (in order of appearance):

Jeffrey Verdon, Attorney, talks about estate planning and asset protection strategies utilized by wealthy individuals; including off-shore entities and a very interesting technique for funding life insurance.

Dave Fessler, Energy & Infrastructure Expert for the Oxford Club.  Dave discusses his views on the future of energy and infrastructure and their impact on jobs and the economy.  He also comments on “the paradox of thrift” – how consumer savings is actually fueling the recession.  He tells us how long he thinks it’s going to last, and where he believes America’s best chance for job creation are right now.

Bob Bauman, Attorney, Former U.S. Congressman, Founder of The Sovereign Society; shares his thoughts on offshore investment, asset protection, second citizenship and the growing interest many people have in diversifying globally.

Vernon Jacobs, CPA, is an expert in international taxation.  Vern tells us what to consider when investing or employing asset protection strategies offshore.

Robert Barnes, Attorney, is part one of two back to back interviews with lawyers from a premier tax and investment fraud law firm that went 3 for 3 (that’s pretty good!) in three of the top four high profile tax cases in the U.S. (you’d recognize the names).  Mr. Barnes reveals the worst thing you can do when contacted by the IRS.

Robert Bernhoft, Attorney, is part two of our tax and investment fraud attorney interviews.  Mr. Bernhoft describes what you can do to proactively avoid problems with both your investors and regulators; and shares how his firm uses specialized “non-litigation” techniques to recover misappropriated funds without going to court.

Steve Hochberg, Chief Market Analyst for Elliott Wave, works closely with Robert Prechter.  Prechter’s 2002 NY Times best seller, Conquer the Crash, accurately predicted the current financial crisis.  While everyone is running scared of inflation, Steve says DEFLATION is actually the big near term threat.  He believes we are “on the precipice of the greatest stock market decline of our lifetime.”

Patri Friedman, Executive Director and Chairman of the Board of The Seasteading Institute.  A city on the sea?  Really??? Before you write it off as Looney Tunes, go to their website and look at their management team.  These guys are all brilliant.  We’re talking Stanford, Harvard, Yale.  Wow.  Have you heard of Pay Pal?   Yeah,the founder is on their board.  And why were they at Freedom Fest?  Take a listen!

Leon Louw, Executive Director of the Free Market Foundation, all the way from South Africa!  Why?  To raise money to advance property ownership rights for blacks in South Africa. For what it’s worth, we didn’t see any evidence of racism at Freedom Fest, though it was full of “tea baggers”.  Obviously, Leon felt people at the event would be supportive of his cause. From our observations he was right.  But this isn’t a political interview. any more than our show is political.  We just  want to understand what people are thinking and doing, and how it creates or undermines real estate opportunities.  Think about the ramifications on demand in a market where a large part of the population, formerly locked out, suddenly has access to buy property.  Very interesting stuff.

Terry Coxon, author of Unleash Your IRA, shares a powerful concept for maximizing your Individual Retirement Account.  We thought we knew all about this topic, but Terry shares a strategy we hadn’t considered. Now we’re hyped to read his book.  With the demise of home equity, and a growing number of people predicting a tough stock market (at best); and lending getting even tighter from financial reform, we think IRA’s and rollover 401k’s are one of the BEST sources of private investment capital.  That makes this a topic worth exploring!

Ron Holland, editor of two financial newsletters and 30 year financial industry veteran, has something to say on the topic of IRA’s.  And it’s concerning.  He shares what he thinks is the greatest threat to your retirement account.

Terry Easton, author of Refounding America and contributor to Human Events. Terry is uber-conservative / Libertarian and has a lot to say on the topics of economics, politics and real estate.  We came to hear a lot of opinions and it just so happens that Terry has a lot of opinions.  But since they come from a long history of study and involvement, we think they’re worth listening to.

All in all, Freedom Fest was a great experience and we’re very likely to attend next year’s event.  We met great people, got valuable insights, and had our paradigms stretched (we’ve been icing them since we got back).  Most of all, we see the economy and real estate from a much broader perspective.  As we continue to seek out markets, opportunities and product niches to invest in, we are convinced a bigger perspective will pay huge dividends.

Remember – our next two episodes feature our interviews with Peter Schiff and Steve Forbes!

The Real Estate Guys™ Radio Show provides ideas, perspectives and resources to help real estate investors succeed.

This podcast brought to you in part by Audible.com.  To download a FREE audiobook of your choice, click here.

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7/25/10: Entrepreneurs in the New Economy – Getting Paid to Solve Problems

Do you remember the old “new” economy? That was the one where technology companies could go public without profit.  In some cases, they didn’t even need revenue. Ahhhh, those were the days.

The new “new” economy (the Great Recession one) hasn’t been nearly as fun – unless you’re an old school entrepreneur.  That’s the kind who looks at problems as opportunities.  Guys (and gals) like that are having a lot of fun right now because there are opportunities galore coming out of the Great Recession.

The Real Estate Guys™ headed off to Freedom Fest in Las Vegas a few weeks back.  We heard that money manager / economist / author / Senate candidate Peter Schiff would be there (among many other people with very strong opinions about the U.S. economy) and we wanted to do some interviews.  We’re happy to report we got lots of great stuff, including Mr. Schiff and the CEO of Forbes Magazine, Steve Forbes.  Watch for those interviews in future broadcasts.

So we fly into Las Vegas in our private jet (the one operated by Southwest Airlines), and get to the convention venue and start setting up our booth.  Before the event had even started, a man stops by and sees our banner for Belize (we were promoting our upcoming field trip to Belize) and asks a few questions.  The short of it is that we find out he’s working on a very exciting project in the Caribbean – one that solves a problem we’ve been trying to figure out too.  Russ gets so excited that he hugs the guy. Very weird.

After the appropriate apologies and some follow up male bonding, our new friend agrees to do a radio interview.  And that’s what this broadcast is all about.

Manning the microphones for this edition of The Real Estate Guys™ Radio Show:

  • Your host, the Larry King of real estate radio, Robert Helms
  • Co-host, our “I love you, man” booth babe, Russell Gray
  • Special Guest, Investment Banker, Entrepreneur and assault victim, Jeff Villwock

Any time we get around smart people, we jump on the opportunity to talk with them. In this case, Russ literally jumped on Jeff.  When Jeff recovered, we got him on the mic, so you can listen to what he’s doing, where he’s doing it and why.  There’s lots of lessons to be gleaned!

Freedom Fest is an event that attracts people with strong political opinions.  In many of the interviews we did there, those opinions come out.  Great!  We think the world works better when people respectfully debate important issues.  Sharing ideas is among the most sacred of our freedoms, especially if you’re radio guys.

We also realize that the U.S. (the bulk of our audience) is pretty polarized right now.  Now, we love our entire audience and our show isn’t political.  However, policies affect economics and economics affects real estate. There shouldn’t be a serious student of real estate who can look at the last several years and deny that.  So politics are going to get into the discourse from time to time, which is a very good thing.

We think these Freedom Fest interviews are great.  If you disagree with the political views of our guests, don’t let that get in the way of hearing what’s being said.  Here’s why:  a big part of real estate investing is understanding demographics and human nature. How people think and believe affects where they (and their money) will be moving.  Even if you disagree with them, if they believe it, it will affect their actions. So YOU need to understand them (even if you disagree) if you want to anticipate their behavior.

Did we mention that Jeff’s project is in St. Kitts?  It just so happens that St. Kitts is one of the stops on our upcoming 9th Annual Summit at Sea!  So we ask Jeff if we can visit his project as part of our already planned real estate shore excursion in St. Kitts. Not only does Jeff agree to allow us to visit, he says he’ll meet us there and show us around.  Awesome!

Once again, we’re reminded of the importance of getting out of our cubicles and into the world where real people are. No doubt that virtual networking is powerful, but just as phones did not replace face to face meetings, neither will social media replace conventions as a great place to make important connections.  This is one of the reasons we attend trade shows and promote our field trips and the Summit at Sea™.  It’s a great way to get to know great people in the real world.  We hope to see YOU at one very soon!

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7/11/10: Ask The Guys – Bankrupcty, Tax Liens, Cheap Houses and More!

So we’re wandering around the radio show one day trying to think of something to talk about.  Then we trip over a big bag of email and say, “Hey! We haven’t answered listener questions for awhile. Let’s do that!”  So today’s episode is all about you and your questions.

Taking the stand and promising to answer each question to the best of our admittedly limited abilities:

  • Host and Professional Pontificator, Robert Helms
  • Co-Host and Head of The Real Estate Guys Research Institute, Russell Gray
  • The Man Who’s Forgotten More Real Estate than Most Will Ever Know, the Godfather of Real Estate, Bob Helms

One of our favorite things to do is show off how smart we are.  For obvious reasons, we don’t get to do that very often, but we always look forward to the opportunity.  Then again, if you subscribe to the idea that people learn by making mistakes, we’re REALLY smart!

Anyway, we get lots of questions from people and we love it.  So please keep ‘em coming!  Go to Ask the Guys and ask away!  For this episode, we grabbed a handful from the email bag and here are some we found.

(For privacy purposes, we’ve omitted the names, phone numbers, social security numbers, birthdates, drivers license numbers, bank account information, picture, height, weight, race, religion, sexual orientation and favorite ice cream)

I just came out of a Chapter 7 bankruptcy.  How can I get a mortgage?

I found properties for $500 – $1000!  Seems like a no-brainer.  Am I missing something?

Is Dallas a dangerous place?

The Great Recession wiped me out.  How do I get going again?

What do you think of using retirement accounts to buy real estate?

Are tax liens a safe investment?

And our personal favorite:

Is it still possible to buy property for no money down?

Tune in for the answers to these and other exciting questions on this episode of The Real Estate Guys™ Radio Show! (theme music plays here).

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4/11/10: Old School Real Estate -Debt Free Investing

Does debt free mean no leverage?  Or are there other ways to optimize return that don’t include mortgages?  The Real Estate Guys™ look take a fresh look at an old school concept: investing for cash – even when you don’t have any!

In the old schoolhouse for today’s lesson:
•    Your Professor of Profit, Head Teacher and Host, Robert Helms
•    Teacher’s Aide and Co-Host, Russell Gray
•    Old School Principal and the Godfather of Real Estate, Bob Helms

It’s been said, “There’s no school like the old school.”  This is just another way of saying that there’s often great wisdom in fundamental concepts which have stood the test of time.  When traumatic events like mortgage meltdowns and Great Recessions occur, they shake the structure of conventional wisdom.  What is often left standing are “old school” principals (like Bob!).

So we decided to brush the dust off of some old school ideas and talk about the pros and cons of investing for CASH.  Wait! If you love leverage or have no cash, stick with us because there’s something in this show for you too!

Class starts with a Health & Safety lesson on the double-edged nature of financial leverage.  Magnified gains are awesome, but magnified losses can leave you cut and bleeding.  Don’t ever run with leverage or swing it around wildly.

Our next lesson is in Current Events and begins with the when, how and why purchasing for cash is the best (and sometimes only) option for many opportunities in today’s market.  However, our Science book says the caterpillar of cash today can metamorphosis into a butterfly of leverage in the future.

After recess, our Economics class features a discussion of why “cash is trash”.  Although it’s fallen out of vogue for bandwagon real estate “investors”, many experts consider real estate a desirable commodity for hedging against inflation.

In Shop class, we discuss how to work with tools to create leverage that doesn’t involve borrowing.  Wow! Debt free leverage.  Maybe this should be a Physics class?

For Phys Ed,  we learn how to play and stay in the game – even if we don’t have any cash of our own.  Fun, but sweaty.

Before we know it, the school day is over and it’s time to head home for supper.  We guess we’re a little nerdy – because we sure had fun in school today!

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4/4/10: The Brave New World of Finance – How to Master Your Debt with Jordan Goodman

We’ve heard estimates that every man, woman and child in the US is currently saddled with $40,000 to $170,000 in debt – just for the Federal government!  Then tack on state and local government debt, and before you even get your first credit card, debt has a dominating hold on your finances.  As we boldly go where no one has gone before, it’s more important than ever to be strategic in managing your debt.  To help us explore the galaxy of information on this topic, we beamed a best selling author into The Real Estate Guys’™ studios.

On the bridge of our radio starship:
•    Captain, Chief “Helmsman” and Host, Robert Helms
•    Pointy-eared Co-Host, Russell “Mr. Spock” Gray
•    Ship’s Financial Doctor and Godfather of Real Estate, Bob Helms
•    Best selling author, the Money Answer Man and ship’s Financial Engineer, Jordan “Don’t call me Scotty” Goodman

“Debt, the endless frontier.  These are the continuing escapades of a spendthrift society.  It’s apparent mission: to encumber itself beyond any hope of repayment; to seek out new debt ceilings and then monetize that debt; to boldly go where no one is sure we should.”  Da ta daaa, ta da ta da DAAAA!!!! Swoosh!!!!

Sorry.  We got carried away.  All this may sound like a tee up for political commentary (we are soooo tempted), but it isn’t.  Our point is that debt, both public and private is a major part of every person’s financial future.  And as we attempt to break free from the gravitational pull of the Great Recession, we find ourselves looking at a brave new world of finance – one with new rules that it behooves each of us to learn.

At its core, debt involves getting other people’s money (which we like!) and paying them interest (we like that less).  The motivation of the lender is, like a drug dealer, to get you hooked on debt and forever paying interest.  The motivation of the addict…we mean borrower, is to enjoy now and pay later (or never).  So where does an investor fit in?

As investors, we want to borrow cheap and invest high – just like the banks.  But since there are no bailout programs for us, we need to be more careful.  The first step is to understand the rules – and then to implement effective strategies.  Sound easy, but when the rules change, we need to examine our strategies.

We launch the show talking about the new realities of debt in the post meltdown economy.  For the older folks, we’re getting back to “normal”.  For younger people, free and easy credit was “normal” and the current environment is no fun at all.  We talk about where things are now and where they might be headed.

With the new Credit Card Act of 2010, the rules of credit cards have changed.  Credit cards, like light sabers (we know we’re mixing sci-fi metaphors), are powerful tools in the right hands – while they can be equally dangerous when used by the untrained.  Since the rules are changing, investors and consumers alike need a little training on the state of the art.  Our special guest and prolific author Jordan “Mr. Money Answers” Goodman, brings us up to speed on some of the need to know items.

As the US and the world is coming out of their bunkers and beginning to explore the economic wasteland, governments, industry and individuals are all making adjustments.  For many individuals with unsustainable levels of debt, professional help may be the best answer.  Jordan shares with us his insights about the important differences between Debt Settlement and Credit Counseling Services.  You’ll want to hear what he has to say.

For some people, the aftermath of the meltdown means foreclosure and perhaps even bankruptcy.  Does that mean game-over or is there life after debt?  Once again, Jordan brings in great practical information and insights to help you chart your personal course.

For the two of you who are facing the brave new world with good credit scores and equity, Jordan reveals an AWESOME strategy for accelerating your mortgage.  Long time listeners – and especially readers of Equity Happens –  know The Real Estate Guys™ have never been big fans of mortgage acceleration.  But Jordan shows us how to use the power of cash flow to accelerate the pay off of a mortgage without amortization.  We know it sounds like science fiction, but it’s real.  Check it out!

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