4/25/10: LIVE! from the 8th Annual Investor Summit at Sea

Most of the time when we do a show, our producer keeps us locked up in the cold, lonely studio with our headphones on.  And even though we have each other, we have to use our imaginations to see our listeners.  But this week, we get to do the show in front of a LIVE STUDIO AUDIENCE! Better yet, we’re aboard a cruise ship sailing through the Caribbean!  Best of all, we’re hanging out with some the brightest, most committed real estate investors on the planet.  Toss in our SPECIAL GUESTS and the whole experience is over the top awesome!

On board and behind (and in front) of the microphones on the beautiful Carnival Triumph for this week’s show:

•    Your Captain and a mighty sailing man, host Robert “Skipper” Helms
•    Your brave and sure first mate, co-host Russell “Gilligan” Gray
•    The Godfather of Real Estate, Bob Helms
•    Rich Dad’s Asset Protection Advisor, Garrett Sutton
•    Rich Dad’s Real Estate Advisor, Ken McElroy
•    Rich Dad’s Creative Finance Advisor, Wayne Palmer
•    International Real Estate Developer, Beth Clifford
•    International Entity Planner, Attorney Mauricio Rauld
•    Special guest from Puglia’s restaurant in Little Italy, New York; featured entertainer in Adam Sandler’s Big Daddy, the one and only Jorge Buccio
•    Fine passengers that sailed that day, a cast of thousands (okay, maybe a few dozen), our live Summit at Sea audience!

As we’re stuffing the faculty and studio audience into the Big Easy Piano Bar for this live taping, we quickly that discover fitting everyone in (physically into the room, but also getting their comments into a one hour broadcast) is anything but easy!  However, the Skipper quickly takes control and before we know it, we’re off and running.

After some brief opening remarks, the Skipper asks each of the Summit Faculty to share their insights and reflections on the remarkable week we’ve all had together.  For the Rich Dad Advisors, this was their first (but hopefully not last!) Summit with The Real Estate Guys™.   They’ve all heard Robert Kiyosaki call us wild and crazy, but now they had a chance to observe it first hand.  Of course, none of that stuff makes it into the show because Summit Rule #1 is “what happens at sea stays at sea”.  Sorry!  Join us next year and then you can be a Summit Insider too!

For today’s show, each Faculty Member shares some of the highlights from their Summit presentations.

Ken McElroy taught on how he approaches real estate in today’s economy.  This is a guys who has over 10,000 doors under his control and is actively acquiring more…in spite of the “bad” real estate market.

Garrett Sutton spoke on state-of-the-art asset protection structures for real estate investors.  He also did a class on how to properly structure deals using investors and partners.  Many well meaning people end up in trouble when they raise money to buy real estate – simply because they don’t know what they don’t know.  Considering that syndicating is arguably the fastest path to big deals and big bucks, a small investment in knowing how to do it right is time and money well spent!

Wayne Palmer comments about his extensive series of classes on the creative use of private notes.  Wayne uses notes for putting together real estate deals which might not otherwise happen.  He also uses them to create equity and cash flow from next to nothing!  It seems like magic, but during the Summit he revealed some of his trade secrets.   Also, he shared the guidelines he follows to mitigate risk and optimize return.  His classes were among the most demanding, but also the most popular.  Powerful and practical principles for profiting from paper (say that fast 10 times).

Beth Clifford wowed the group with her amazing presentation on the how and why of going offshore with some of your investments and business ventures.  Hers was one of the most popular topics at the Summit, even with the faculty!  Wayne Palmer said Beth’s presentation stretched his brain and was his favorite of the Summit.  Now THAT’S saying something!

Mauricio Rauld expanded on the concept of international investment and business structures – and how to avoid the dangerous schemes which land so many novices in trouble.  There are many valid, legal and ethical structures which can be used to better protect assets, protect privacy and mitigate taxes.

There’s a lot more that happened on the Summit which just can’t fit into the radio show – even in a summary – including the Apartment Investors Panel, the Ask the Attorneys Panel and the Investor Roundtables.  Plus the fun in the sun real estate shore excursion in Belize, the more fun in the sun beach party in Cozumel and all the private shipboard parties.  Alumni will never look at a napkin the same way again!

Going into the Summit, we weren’t sure what the Rich Dad Advisors would think by the end of the week.  After all, they get to hang out with Robert Kiyosaki and talk in front of crowds of thousands!  But when it was all said and done, they had a great time.  Don’t take our word for it.  Listen to the show and you can hear it for yourself!

Listen Now

Don’t miss a show!  Subscribe to the Free Podcast

Want More?  Sign Up for The Real Estate Guys Free Newsletter!

To get in on the EARLY BIRD deals for the 2011 Investor Summit at Sea, use the Feedback page to send us your request.   You’ll be given an opportunity to sign up at the lowest public price.  And after listening to this show, why wouldn’t you want to be with us on the 9th Annual Summit at Sea?

Seven Lessons from the Summit at Sea

The Real Estate Guys™ 8th Annual Summit at Sea was a huge success! We feel sorry for everyone that wasn’t with us this year.   All the energy, education, experiences and relationships are hard to put into words, but we have 7 lessons we believe will help you.

We kicked off the 2010 Summit in the French Quarter of New Orleans. Many Summit attendees wisely came in a day early and made plans to stay a day or two later in order to enjoy the hospitality of this amazing city.  Those who got the most out of their trip had invested the time to research the city beforehand.  When they arrived they had geographical context and some idea about what they wanted to see and do.  One of our attendees had plans to attend a certain restaurant he’d heard good things about.  The food of the French Quarter was certainly one of the highlights of this trip. Russ took the opportunity to try turtle soup and fried alligator.  Both were great and he’d order them again!

Summit Lesson #1:  Life’s best surprises go to the curious and adventurous. Invest time to visit new places, meet new people, try new things and discover new ideas.  You’ll be the richer for it.  If you’re not that way naturally (like Russ) – hang out with people who are (like Robert).  Some of our best real estate deals and business relationships have come from simply exploring.  Deal hunting is as much art as science.  You can’t always script it.

Back to our attendee. So this guy is heading out according to his plan.  But when he steps into the hotel elevator, he runs into Rich Dad Advisor® Wayne Palmer and his family.  The short of it is our guy ends up going to dinner with Wayne!  We’ve been at Rich Dad events with hundreds and thousands of people in attendance, many of whom wait in line for a long time just to get two minutes with an Advisor.  Can you imagine being able to enjoy a long casual dinner with Wayne Palmer?

Summit Lesson #2:  Great opportunities to meet interesting people and learn new things won’t happen to those who stay home, arrive late, leave early or aren’t flexible. If you want to build strategic relationships, you must go to where the right people are and put yourself in a position to get lucky (speaking purely in terms of business).

As real estate investors, it’s important to practice exploring markets. There’s so much more you learn from actually being there.  The internet can’t capture the spirit of a market.  From cab drivers, to hotel and restaurant workers, to local shop keepers and business owners, to the people on the street, there is a lot you will discover about what’s REALLY happening in a local economy when you’re physically in it.  People living in a community know what’s happening right now with rents, prices, migration trends, demographics and job creation.  Only when you add this anecdotal information to your own real life observations can you begin to put statistics into useful perspective.  Remember: stats reports things that have already happened – not what’s happening now.

We noticed that New Orleans is a very entrepreneurial city. Perhaps in the wake of Katrina (the effects of which were still apparent) the bravest, most resilient and dedicated people have returned first.  In any case, these folks weren’t asking for handouts.  They were happy for the opportunity to earn our business – and very thankful for it when they got it.  As our nation and world continues to work through the effects of the financial crisis, the people of New Orleans gave us hope.  If people all over the world dedicate themselves to working their way out of a mess like these people are, our world is going to come out of this Great Recession just fine.

Summit Lesson #3:  Entrepreneurship and hard work (not handouts) are the keys to personal and societal recovery. Everyone who’s struggling in this economy should take a trip to New Orleans and see how winners react to adversity.  No wonder the Saints won the Super Bowl.  If we all take the spirit of New Orleans back to our businesses, this recession will quickly fade into the rear view mirror.

After a great session in the hotel, the group headed to the pier and boarded the ship.  We sailed on the Carnival Triumph, which was SOLD OUT!  Cruise lines are actually weathering the financial storm pretty well.  Why? Perhaps people realize that a cruise is a great value, meets a basic human need (to refresh themselves) and attracts financially capable people from all over the world (a broad market).  Do these principles apply to real estate investing?  It’s obvious that real estate meets a basic human need, but we’re reminded of the importance of having a large, financially capable target market.  No matter how badly someone wants something, if they can’t afford it (or don’t think they can) they won’t buy.

Summit Lesson #4:  Pick markets and properties that appeal to a large demographic of financially capable people and you will weather difficult times more easily.

The next lesson came later, but is an extension of lesson #4.  Rich Dad’s Real Estate Advisor Ken McElroy talked about the markets and properties he targets:  B-Class apartments (meets a basic human need – housing) with affordable rents (provides a great value) that appeal to working class people (a large, financially capable demographic) in markets with good mid-to-long term job creation (he focuses on areas with fundamental and growing industries such as energy).

What was very interesting is that on the real estate shore excursion to Belize, we saw a very different variation on the same themes.

In Belize, we visited a piece of beautiful waterfront land and listened as the developer shared her vision for the property.  She plans to build high quality, moderately priced residential units suitable for resort, retirement or ex-pat full time occupancy.  While the country of Belize is sparsely populated and very poor, it is a land of breathtaking natural beauty and terrific year round warm weather.

Like the cruise ship, the project in Belize provides great value, satisfies a basic human need and desire, and appeals to a worldwide, financially capable demographic.  In other words, the project’s success isn’t dependent on the local population to be successful.  It attracts people from all over the world.  And because there will be so few units available relative to the size of the market, it’s hard to imagine the project won’t be successful.  It’s very different than B-class apartments, but like the cruise line, follows a similar fundamental formula.

Summit Lesson #5: Essential principles of successful investing don’t vary much, even though markets, properties and target customers might. Or as the old adage says, there’s more than one way to skin a cat (though we have no idea why anyone would want to do that – it’s cruel).

Even though this was our 8th Summit, there is no doubt it was our most compelling line up of speakers. We were very fortunate to have not one, but THREE of Robert Kiyosaki’s Rich Dad Advisors® teaching at our Summit.  Creative real estate genius Wayne Palmer taught a powerful and practical series on how to create capital, produce profits and generate cash flow with the creative use of private notes.  Even though people had to ice their brains after each session, Wayne was gracious to make himself available during non-class times.  He answered questions and even did some individual personal consultations.  These opportunities weren’t part of the official program, but some people at the event got lucky (see Summit Lesson #2).  People left the event believing they could use the education they got to do at least one deal which would more than pay for the cost of the entire Summit – and next year’s too!

To quote Robert Kiyosaki, “Savers are Losers”.  Though we agree with his premise (and highly recommend you read his latest mega bestseller Conspiracy of the Rich), we’re saying it for a completely different reason.  We think people who “saved money” by not coming on the Summit actually lost money.  We know.  That sounds like sales pitch.  But anyone who’s ever tried to do an event like this knows that no one is getting rich by promoting it.  More, if you saw the surveys of the people who came, you’d realize that we still haven’t figured out how to over-promote the Summit.  Everyone felt it was easily worth the time and money.

When you’re around people who know how to make money in a tough economy; who are optimistic about the future; who are resourceful and busy taking advantage of all the opportunities they see in the market, you quickly realize those who lost out were those who wanted to attend and chose not to because they told themselves “I can’t afford it”.  This paradigm looks at the Summit (or similar events) as an expense and not an investment.  The difference is that an expense pays for something that is consumed and doesn’t produce a profit.  An investment pays for itself and returns a profit.  The paradigm should have been, “I can’t afford not to” and “How can I afford it?”  Most people believe a college education is worth the price, yet hesitate to invest in non-institutional education.  Could it be they believe the degree is more important than the knowledge?  What do you believe?

Summit Lesson #6:  Paradigms affect potential and profits, so pick your paradigms carefully. The Summit was full of winners and after living with these amazing people for a week we found ourselves picking up new paradigms and making commitments to shed some bad ones.  One of the great challenges is to manage the influences to our thinking.  We look for every opportunity to hang around top performers.

One common theme we noticed in the presentations of nearly all the speakers was “control”.  Wayne Palmer talked about his rules for risk.  He follows strict (but flexible) guidelines for collateral, loan-to-values, target returns and cash flows in order to control the risks he takes in any deal.  Rich Dad’s Asset Protection Advisor, attorney Garrett Sutton, talked about entity planning and how to structure your affairs in order to control liability and tax risk.  Attorney Mauricio Rauld spoke on international entity structures which further control liability and tax risk when investing outside of the US.

Ken McElroy talked about his guidelines for market and property due diligence, as well as his dogged attention to cash flow.  He uses these disciplines to control market risk.  He says this control is why his real estate investments aren’t in trouble even though he’s going through the same challenging market conditions that are wiping out so many others.  He doesn’t rely upon the market to do the work for him.  He looks for deals with upside and works to improve the cash flow, which in turn increases the equity.  Then he uses prudent leverage to release the new equity and return his seed capital so he can move forward with positive cash flow – all on no money invested.  This produces what Robert Kiyosaki calls “infinite returns”.  Meanwhile, he recycles the seed capital to do the next deal!

Robert Helms stressed the importance of controlling one’s mindset when investing in the wake of an unprecedented drop in values (see Summit Lesson #6).  Each had a different angle, but again, all variations on a theme: control.

Summit Lesson #7:  Pay careful attention to the things you can control so you’re able to withstand the challenges caused by the things you can’t (inflation, taxes, market cycles, interest rates, etc).  When it comes to investing, most people are out of control.  Fear overrides common sense and they buy high and sell low.  They turn their money over to bankers and Wall Street and hope for the best (hope is not a strategy).  They manage cash flow by feel rather than budgets and bookkeeping.  Worst of all, they wait for external circumstances to get better rather than investing in making themselves better with education, relationships, strategies, disciplines, systems and a willingness to take action in the face of uncertainty.

We could go on and on!  There are SO many great lessons to glean from the Summit.  Of course, the only way to really get them is to actually be there.  The Real Estate Guys™ Summit isn’t the only event of its type, but after reading the surveys of the attendees, and even more, hearing the feedback of the Rich Dad Advisors®, we think it’s one of the best.  And we’re already making plans to make next year’s Summit even better!

We encourage you to make it your goal to be with us in 2011. Without exception, every survey we received said the event exceeded expectations and was well worth the time and money invested.  Over one third of this year’s group has already signed up for next year!

To make sure YOU get the upcoming announcement about The Real Estate Guys™ 9th Annual Summit at Sea in 2011, be sure to sign up for our newsletter. To be extra sure you get the early bird deal, use our feedback page to let us know you’re interested and we’ll put you on our VIP notification list.

All the best!

Robert Helms and Russell Gray
Hosts
The Real Estate Guys™ Radio Show

12/27/09: A Glimpse into the New Year with Ken McElroy and Kim Kiyosaki

In our continuing quest for real estate wisdom, The Real Estate Guys catch up with two of the most active real estate investors around.  As 2009 closes and we look forward to the new decade, what do the experts think?

Gazing into their crystal balls for this episode:

• Your senior seer, host Robert Helms
• Chief ball polisher, co-host Russell Gray
• Rich Dad’s Real Estate Advisor, best selling author and real estate entrepreneur, Ken McElroy
• Best selling author, prolific real estate investor and entrepreneur, Kim Kiyosaki

We like to talk to people who know what they’re talking about.  Not just because they’re smart, but because they have wisdom that only comes from experience.  We kick off with an honorary member of The Real Estate Guys, Ken McElroy.  This is a show worth listening to with a note pad because he gives us some great pearls of real estate wisdom!

Ken starts out telling us what he’s excited about as we enter the new year.  While many people are licking their wounds, Ken says 2009 was his best year ever!  Then he goes on to explain why the unraveling of the mortgage industry has provided extraordinary opportunity.  He also discusses his strategies for market selection, tells us what NOT to do, and then reveals some of the markets and product types he’s most interested in right now.  Plus, he gives us the one key item he looks for to find markets that are more likely to provide lower marketing and turnover costs, and a bigger pool of quality tenants.

Ken wraps up his appearance by sharing what he sees coming in 2010 in terms of interest rates, foreclosures, rents, inflation, the dollar and more!  Really good stuff!

The second half of the show features a conversation with Kim Kiyosaki,  Rich Woman author and big time real estate investor.  She gives us her take on the prospects for 2010, which includes both bad news and good news.  Then Kim shares some details on a huge real estate deal she just closed which exemplifies her forecast.  She reminded us that she started in 1989 in the middle of the last real estate “meltdown” with no money and no credit.  Unable to obtain conventional loans for the first 8 years, she explains how she had to be creative to get her deals done. When you hear the size of her latest deal, you’ll realize how much can change in 20 years!  As we said in Equity Happens, 20 years from now it’s going to be 20 years from now.  The difference will be what you choose to do between now and then.

We’re going to continue checking in with the biggest brains in real estate to see what they’re going to be doing in the new decade.  Stay tuned to The Real Estate Guys - and tell a friend!

Listen Now

Don’t miss a show! Subscribe to the Free Podcast

Want More?  Sign Up for The Real Estate Guys Free Newsletter!

Wayne Palmer added to Summit Faculty!!!

More GREAT news!!!  Wayne Palmer, a man Robert Kiyosaki describes as a “creative genius” when it comes to real estate deal making, will be a featured teacher on The Real Estate Guys 8th Annual Real Estate Investor Summit at Sea!

Wayne joins fellow Rich Dad advisors Ken McElroy and Garrett Sutton, as well as The Real Estate Guys’ own Robert Helms, Russell Gray and the Godfather of Real Estate Bob Helms – plus international real estate developer Beth Clifford – for the most dynamic Summit faculty we’ve ever had!

Wayne is a contributing author to Robert Kiyosaki’s recently released The REAL Book of Real Estate.  In fact, Wayne wrote more of that book than any other contributor.  Wayne is a master of creative deal structure using notes and equity exchanges.  For the first time ever, he will be revealing his strategies for creative deal structure and profit using promissory notes!

Wayne has a long history in real estate dating back to 1976.  He has an extensive background, which spans several states and decades, in real estate sales, development and financing.  Wayne is a Certified Real Estate Note Appraiser, a Certified Cash Flow Master Broker and is a respected leader in the creative equity exchange industry.  Most importantly, Wayne knows how to create wealth without cash and will be sharing his priceless knowledge as we sail the Caribbean together for 8 days and 7 nights!

This is a VERY RARE OPPORTUNITY for a LIMITED number of people to spend an entire week with Wayne (plus Ken, Garrett and the rest of the Summit faculty).  Don’t miss the boat!

Rich Dad’s The Art of a Deal – Day 3 Report

Russ here again – this time I’m somewhere over Arizona in an airplane headed home after a powerful conclusion to Rich Dad’s The Art of a Deal.  This is my final report in the series.   As I write, there’s a woman sitting behind me who also attended the conference.  She’s excitedly preaching the gospel of Rich Dad to her neighbor!  It’s hard not to be totally enthused after this weekend.

True to form, Mr. Kiyosaki opened Day 3 with review.  He used repetition and discussion to reinforce the lessons.  I personally found it to be a very effective way to learn.  The discussions also allowed me to get to know many other people as I migrated from table to table to engage in conversation.  I had several delightful dialogs with Mietek, a guy from from Poland.  He shared how banking, taxes, and real estate work there.  It was fascinating information that I might never have sought out on my own.

I also met a musician from Japan, several very nice people from Estonia, others from New Zealand and Colombia.  I even met Marco Regil, a highly popular TV game show host in Latin America.  Hearing their perspectives on money, business and opportunity was enlightening to say the least.  Of course, I spoke with people from all over the US as well, and their insights were also very valuable and interesting.

When we got back into the nuts and bolts of deal making, the group engaged in several simulations.  Putting the concepts into practice was so powerful!  Going from hearing the “how to” and then watching the pros do it (while smugly thinking, “Oh I could do that”) to actually having to put deals together on the spot, quickly revealed the gaps in our comprehension.   Even though the lessons had been taught, many of us still didn’t get it well enough to be able to do it.

After each exercise, as we laughed about our obvious inabilities, rather than move on, Mr. Kiyosaki would have us analyze what attitudes and prejudices were at the root of our failure to act effectively.   His emphasis was not on the mechanics of deal making, but rather on the filters through which we process information,  and helping us see how our “context” ties back to our decisions and actions.  His point was that although we all knew what to do, when it came time to actually do it for real, most of us (including yours truly) “tightened” up and couldn’t execute effectively.  We’d get hung up on little things that didn’t matter (majoring in the minors) which would end up costing us a deal.

One of the many great quotes I captured came from Mr. Kiyosaki, “The most important thing to know is yourself.” Dwell on that because it’s a profound and powerful truth, especially within the context of developing a mindset to be a successful entrepreneur or investor.  Some might think Mr. Kiyosaki’s teaching is too philosophical, but I think to say this weekend’s training was immensely practical would be a gross understatement.  He recognizes the important distinction between knowing how to do something and actually being able to do it effectively.

I brought an 80 page notebook just for this event and it’s nearly full!  I have pages of information, ideas, action items, and contact names to follow up with.  In just one weekend, I made two deals and found several prospective correspondents to provide The Real Estate Guys audience (that’s you!) with market intelligence on their home towns.  Our new friends will provide us eyes and ears on the streets of the world and we’ll bring that information to you!

To summarize the valuable takeaways from this weekend:

• Context (how you interpret information) makes content valuable. Without it, you’re just a librarian. Context converts content into actionable wisdom (effective action).

• Trust makes contacts valuable. Without trust, your database is no more valuable than a phone directory.

• Contacts make deals possible. If you don’t have relationships, you’re not in the real deal flow – you’re just picking over the scraps on the MLS or internet.

• Deals are the currency of relationships. You don’t use the relationship to get the deal. You use the deal to get the relationship. Read that again. Now read it again. It’s that important. Get this wrong and it won’t be long until you’re out of business.

• Nothing ventured, nothing gained. You may think you know what this means, but I’m betting most people reading this don’t really get it. Fear is the thief of dreams. There are people who were afraid this event wouldn’t be worth $5,000 and 3 days of their time. So they didn’t come. Very few will do anything of lasting value with the time or money “saved” by not going. Meanwhile, I have education, relationships, inspiration, clarity and resolve. There are no guarantees I’ll get a return on the investment, but at least I’m in the game. A big lesson from this weekend is how important it is to get in the game. That’s why I love working with Robert Helms. Getting in the game is his specialty.

In closing, be aware that there’s more exciting stuff coming from the Kiyosaki camp.  We’ll keep you informed.  The economy and opportunities have changed – and more change is likely.   The Kiyosakis like real estate right now (among other things).  You may agree or disagree, but their arguments against the dollar and stocks are compelling.  If you’re serious about your financial future, it’s a perspective worth understanding, whether you choose to agree or disagree.

Meanwhile, remember The Real Estate Guys have at least two Rich Dad Advisors (Ken McElroy and Garrett Sutton) joining us on our 8th annual Investor Summit at Sea.  After this weekend, I can’t imagine why anyone wouldn’t want to take advantage of having these guys captive on a cruise ship for seven full days.  I hope you decide to take a “chance” and invest in your education and relationships by joining us.   It’s a rare opportunity to spend quality time with the same advisors who work directly with Robert & Kim Kiyosaki. There’s lots of upside and very little downside.   Think about it.  The worst case scenario is that you enjoy a great cruise.   And who knows?  You may get an idea, make a contact, or have a motivational breakthrough that will elevate you to the next level of success!

Subscribe to the Free Podcast

Want More?  Sign Up for The Real Estate Guys Free Newsletter!

Rich Dad’s The Art of a Deal – Day 2 Report

This is Russ again.  I’m back in the hotel room after another intense 13 hour day at Rich Dad’s The Art of a Deal event.  Another fantastic day of learning, thinking, networking and having a few seismic paradigm shifts. I continue to be blown away at the caliber of the people.  The networking alone is worth the cost and time to be here!

Robert Kiyosaki started the morning with a review of yesterday’s key concepts.  His teaching style is masterful. I was reminded how critically important review is.  One very important takeaway for me was to be careful to focus on truly learning, and not just being entertained with “new”ideas.  Winners consistently review the fundamentals.  Mr. Kiyosaki is disciplined to keep focus on the core Rich Dad principles, which provide the context for all the content he and his guest speakers provide.

One key Rich Dad principle is that rich people primarily focus on investing in assets which make them money, and secondarily on working for a paycheck.

I’ve heard that a thousand times.  But in the context of today’s economy,  it took on a much deeper meaning for me.  With the national “official” employment rate in excess of 10%, I realized there are tens of millions of people waiting for “someone” to create a job for them so they could work for a paycheck.  Meanwhile, they sit on their assets and consume their savings (denominated in dollars which are declining in value). Unfortunately, this is because most people don’t know how to invest, so they wait for a job – or worse, a subsidy check from the government.

Wayne Palmer took us much deeper into the mechanics of creative exchanging.  We started with a continuation of yesterday’s simulations.  I saw a guy from Germany (whom I had dinner with last night) trade a Michael Jackson CD for (are you ready?) travel expenses to, and three full month free accommodations in, Buenos Aries, Argentina.  Plus, he gets Spanish language lessons, Tango dance lessons and real estate sales training.  And there’s even more to the story, but I don’t have the room to share it all.  It was absolutely mind-boggling!

We observed professional exchangers working on real deals.  I thought I was pretty experienced, but the pace at which they were able to do deals blew me away.  Mr. Kiyosaki stopped them multiple times to make sure we students didn’t get lost.  During those breaks, the professionals continued to quietly do deals and still jump back into teaching mode to answer our many questions.   During one short break, while the students asked questions, the pros did four deals.  It was amazing.  I realized how liquid real estate equity can be when it’s traded in the right environment!

Rich Dad Advisor Mike Maloney, did a masterful job explaining how the US money system is currently operating, the profound impact of debt, and the potential dangers of a growing federal deficit and debt.  It was shocking and sobering, but within the context of the opportunities that are available, it wasn’t so much frightening as it was a wake up call.  What’s coming was referred to as “the greatest wealth transfer in the history of the world”.  I don’t know about you, but it seems to me that’s a claim worth looking in to.

We heard from Kim Kiyosaki, who just closed a deal using a strategy the Kiyosaki’s learned from Wayne Palmer at the Rich Dad Real Estate Summit in September.  All the details weren’t disclosed, but the deal involved the acquisition of a distressed note and an 8 figure profit.  Very impressive.  Perhaps I’ll learn more tomorrow.

I had lunch today with Rich Dad Real Estate Advisor, Ken McElroy, who told me he’s really looking forward to being a part of The Real Estate Guys’ Investor Summit at Sea next April.  I had dinner with a doctor who told me he’s ready to quit medicine because of the direction of healthcare in the US and he’s looking to buy property in another country as a Plan B.  That was a very interesting conversation.  I wonder how many other people out there feel that way?

I wish I could share all of the great things I’m learning and experiencing, but it’s not possible.  Besides it would deceive you into thinking the event was about the information.  As Mr. Kiyosaki has made clear this weekend, the content is only beneficial in the right context.  Being here is the context.

Tomorrow’s session is shorter, but I need to catch a plane right afterwards, so I’ll post the Day 3 report late Sunday or on Monday.  Have a great day!

Subscribe to the Free Podcast

Want More?  Sign Up for The Real Estate Guys Free Newsletter!

Robert Kiyosaki Presents The Art of a Deal – How to Put Deals Together Without Money

The Real Estate Guys are headed to Scottsdale Arizona to attend Robert Kiyosaki’s latest event The Art of a Deal.   After attending Rich Dad’s Real Estate Summit with Ken McElroy last September we’ve been eagerly looking forward to this event.  We hear the event is nearly sold out, so if you want to go be sure to sign up NOW!

On the off chance you don’t know who Robert Kiyosaki is,  just go check out The New York Times Best Seller’s List.  We understand that Mr. Kiyosaki has taken up residence there with two books on the list, including the perennial placement of Rich Dad Poor Dad and his latest work Conspiracy of the Rich.

Needless to say, we’re big fans so off we go to Scottsdale!  We’ll post our report as soon as we get back.  If you’re there, make to look for us – we’ll be the guys taking pages of notes.

Here’s a personal invitation from Mr. K himself:

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.

We hope you decide to join us in Scottsdale!  Meanwhile,  here are a couple exclusive interviews you’ll want to listen to.

The first one is an exclusive Backstage interview we did with Robert Kiyosaki and Wayne Palmer at the Rich Dad offices in Scottsdale.   This is something you didn’t get even if you’re one of our podcast subscribers.  We’re working on a lot more Members Only goodies for Backstage Pass Members.

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 next one is our recent radio interview with event speaker and Rich Dad Advisor Wayne Palmer on the topic of Creative Exchanges.  This show originally broadcast on 10/18/09.

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.

Ken McElroy to Cruise with The Real Estate Guys!

We are STOKED to announce that highly successful real estate entrepreneur, best selling author and Rich Dad Advisor Ken McElroy has agreed to teach on The Real Estate Guys 8th Annual Real Estate Investor Summit at Sea!

In case you don’t know, Ken McElroy started out as a property manager for other property owners.  He cut his teeth (and more!) in the real world dealing with tenants, toilets and troubles on behalf of his customers.  But as he became more successful, he invested in properties himself.  When he ran out of his own money and wanted to do bigger deals, he teamed up with partners and formed syndications.  Along the way, he met Robert and Kim Kiyosaki, who made him one of their most trusted advisors.  Today, Ken has over 8,000 units under management and is known worldwide through his writings, presentations and close association with the Rich Dad company.

Over the years, The Real Estate Guys have been very fortunate to share just a small portion of Ken’s wealth of real estate wisdom with our listeners through his appearances on our show.  But that was only one hour at a time.  Now, Ken has agreed to join us for 8 DAYS and 7 NIGHTS as we sail to Belize, Roatan and Cozumel! Imagine being able to talk real estate over breakfast, lunch, dinner or cocktails with Ken McElroy!  Now, you don’t have to imagine.  You can make it happen by signing up today!

This is a VERY RARE OPPORTUNITY for a LIMITED number of people to spend a week with Ken McElroy on The Real Estate Guys 8th Annual Investor Summit at Sea.  Don’t miss the boat because you may never get another opportunity like this!

Reality or Mirage?

Today’s Wall Street Journal reports that MGM Mirage is cutting the price of  the condominiums in its spectacular City Center project in Las Vegas, Nevada.  How big a cut?  Thirty percent!  We’re not sure what their margin is, but that’s probably all of it and then some. Ouch.

Worse, it’s probably still not enough. But only time will tell.  The cuts are a little surprising to us, but clearly they’re the result of a major reality check for MGM Mirage.  And this post isn’t really about Las Vegas, MGM or City Center.  It’s about the LESSONS available in this situation for all of us.

Lesson #1 – The market sets the price. Whatever MGM needs to cover its cost is interesting, but only to MGM.  The market decides what its willing to pay.  In this case, MGM is hoping it’s just 30% off.  Before it’s all done the market may want more.

Lesson #2 – The market is fickle. Three years ago people were willing to pay more. That’s why MGM sold so many.  People had equity, unemployment was half what it is today, financing was readily available for almost anything related to real estate  – even condo-hotels.  But a funny thing happened on the way to the closing table.  Okay, not so funny.  But the stream of foreign money through Wall Street into mortgage backed securities got shut off almost over night, taking with it equity and working capital.  A market heavily driven by momentum did an abrupt 180.  Whether you’re rehabbing a fixer upper or building a skyscraper, if your success requires you to find a ready,willing and able buyer (or in MGM’s case, thousands of them), you better get to market fast – because things can change.

Lesson #3 – Have a Plan B. Donald Trump’s Plan A was to sell the condos in his Las Vegas project, just like MGM and every other developer participating in the Las Vegas rush for real estate gold.  When Plan A bit the dust, he converted the project into a hotel.  Still a tough gig, but the goal is to get some cash flow to hold the property until things improve.  Rich Dad Advisor and Robert & Kim Kiyosaki’s investment partner Ken McElroy says they only do deals they can afford to stay in for 10 years.  Plan A may be to build or fix up for quick sale, but Plan B is to structure the deal so it still makes sense if they have to hold.  Plan A is a win and so is Plan B.

Lesson #4 – Understand the other party’s needs, wants and desires. When you’re in a deal that’s going sideways, whether for reasons under your control or those not (certainly MGM could not predict, much less control the mortgage meltdown), it’s easy to fixate on your own pain.  If buyers aren’t willing to close on City Center, should it be assumed they are unwilling because of the price?  Could they be unable because of lack of financing?  Could they be afraid of reduced rents on their units due to the soft economy?  Until you know what the issue are for the other party (again, in MGM’s case, thousands of them), you might give up or give away profit unnecessarily.

Lesson #5 – Use Creativity to Protect Profits (or minimize losses). Certainly we don’t know all the considerations for MGM, and presumably these are extremely smart people, but we know many investors who are in contract for units in City Center and we haven’t heard any discussion of owner financing.  We know that condo-hotel pricing has all but disappeared. For many buyers getting a conventional third party loan is an impossibility.  But what if City Center carried back the financing?  It doesn’t get cash, but it gets an asset (a mortgage). For those buyers who need income to service the mortgage, couldn’t MGM as the hotel operator, steer more guests into the unit? After all, they still get their operator’s share of revenue, plus they get the mortgage payment.  The owner may need to kick in a little cash flow to feed the mortgage, but better than losing one’s deposit. After all, it’s still one of the premier properties in the country.  Where do you think values will be in 20 years?

You may not be a Big Time Operator like MGM.  But real estate is real estate and when you watch what’s happening for the BTO’s, many of the lessons will apply to you.

(Side note: For more information on using private notes, check out our interview with creative finance guru Wayne Palmer called The Power of Pen: Using Private Notes to Get the Deal Done. )

The 8th Annual Summit at Sea is April 9-17, 2010!!!

Enjoy a week of fun, sun, camaraderie and powerful real estate education sailing the beautiful Caribbean with your hosts – The Real Estate Guys™ and an AMAZING line up of teachers including Rich Dad Advisors Ken McElroy, Garrett Sutton and Wayne Palmer; plus international real estate developer Beth Clifford and of course, Robert, Russ and the Godfather of Real Estate, Bob Helms.

Friday, April 9 through Saturday, April 17, 2010

Register early for the best upgrades! Call 888-489-7723 to speak with our fabulous Cruise Director MaryLyn or contact us though our Feedback page.

Food, Fun, Sun, Drinks, Food, Music, Dancing, Food, Shows, Shore Excursions and Food! You’ll love the International Gourmet Cuisine, Lavish Entertainment, Full Casino, Live Bands, Round-the-Clock Complimentary Room Service and incredible ports of call. But that’s not all!

Information Packed Seminars, Workshops and Round Table Discussions On the days at sea, The Guys and their team of expert speakers provide over 25 hours of exciting and practical real estate training to help you build your knowledge to expand your real estate empire!

A Mastermind Experience - In his classic Think and Grow Rich, author Napoleon Hill revealed that most of the millionaires he interviewed always invested quality time with like-minded people as a way to stay motivated, gather new ideas and to get feedback on their own ideas. What better place than an 8 day cruise to “rub brains” with The Real Estate Guys, their guest speakers and other like-minded investors? It’s a planning retreat, a vacation, a networking event and trade conference all wrapped into one power-packed week!

Optional Real Estate Field Trip – The great thing about real estate is that it’s everywhere!  So even though the ship’s “consumer” excursions are fun, The Real Estate Guys always like to set up an educational tour of a local real estate market at one or more of our ports of call. This is a great way to see how The Guys evaluate a market – and we almost always get local market experts to share their insights with our group.  We call it “Kickin’ the Dirt” – though sometimes it’s actually beautiful white sand beaches and crystal blue water!

This Year’s Ports – We’ll be starting in the fun filled city of New Orleans on Friday, April 9th before we set sail on the incredible Carnival Triumph to visit the beautiful ports of Belize, Isla Roatan and Cozumel, Mexico.

It’s a Family Affair! Even if your spouse and children aren’t interested in real estate, there’s lots to enjoy while you’re in classes. The Guys always bring their families, so you’ll get to meet The Real Estate Wives and The Real Estate Kids! Camp Carnival has age appropriate activities for children as young as two years old!

Space is limited, so call now so you don’t miss the boat!

Register early for the best upgrades! Call 1-888-489-7723 to speak with our Cruise Director MaryLyn  or or contact us though our Feedback page.

Still not convinced?  Check out this video from one of our previous Summits and imagine YOU as the star of the 2010 event!

The Top 10 Reasons to Attend The Real Estate Guys Investor Summit at Sea

Frequently Asked Questions

« Previous Page — Next Page »