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. 
Listen Now
Don’t miss a show! Subscribe to the Free Podcast
Want More? Sign Up for The Real Estate Guys™ Free Newsletter!
7/18/10: Still Trying to Modify Your Loan? Tip the Scales in Your Favor with Martin Andelman
Feeling undersized when going up against your lender in a loan mod negotiation? It’s a big problem to wrestle with, but you’re not alone! Recent developments are tipping the scales back toward the borrower – and none to soon! To get up to speed on the latest and greatest, we invited back to the show one of the most prolific commentators on the topic.
In the Sumo sand pit for this episode:
- Your larger than life host, Robert Helms
- Co-host and sand pit groomer, Russell Gray
- The Godfather of Real Estate, Bob Helms
- Special Guest, Mortgage Industry Pundit, Martin Andelman
Even though we see lots of opportunities in all the crushing problems facing today’s real estate market, that isn’t much consolation to people still grappling with mortgages that don’t make sense. No wonder our special report, What You MUST Know Before Attempting a Loan Workout (available in our Resource Center) has been our most requested publication for the last 18 months. And when you consider that the number of modifications actually getting done are dwarfed by the huge number of mortgages currently in default, there’s no way to take this problem lightly. When it all shakes out, we know there’s still a LOT of work to do before the balance sheets of banks and borrowers are stabilized. It’s a sizable task.
Enter Martin Andelman. Martin reminds us of Don Quixote from Man of La Mancha. We almost went there with this blog, but the Sumo thing was way too much fun. Still, Don Quixote was a crusader pursuing an impossible dream (the theme song from the movie), so it seemed to match. It was hard to combine “impossible dream” with Sumo, unless there was a Speedo involved, and we didn’t think that was a good fit, if you know what we mean.
Anyway, Martin’s been an observer, commentator and outspoken critic of the banks and lenders who claim to care about the borrowers, but can’t seem to do anything substantial to help. Do you remember the Bible verse in James, where it basically says “talk is cheap” (our paraphrase)? That is, what good does it do to say you care, if you don’t really do anything real to help?
Please don’t misunderstand. We’re not advocates for, or supporters of, bailouts for borrowers or for banks. Philosophically, we think things would get better a whole lot faster if the government would get out of the way and let the banks and borrowers negotiate. After all, these are contracts between private parties. But the government has had its nose in the mortgage business for decades, so it’s a threesome, like it or not. (We’re sorry. Is our opinion showing? We’ll tuck it away.)
So we start this show with an update from Martin on the state of the government’s HAMP program. Can you feel it yet? Is it working? Is it getting better? Martin gives us the scoop. His answer surprised us.
And while the Executive Branch is trying get its HAMP fired up, what about the Legislature and the Judiciary? Martin briefs us on a couple of interesting court cases which affect loan modifications. Of course, we can’t help but talk about California’s SB94, which now “protects” consumers from all the “greedy” loan mod attorneys who selfishly want to be paid for the work they do. Why wouldn’t the attorney just do the work first and then send a bill? It’s so unreasonable to think that a client who isn’t making their mortgage payment would be a bad credit risk. We’re sure all the underwater borrowers are sleeping much better now that now that most of the loan mod companies have shut their doors. Yeah, that helped. Unless….do you think maybe it wasn’t the borrower the law was intended to help? Hmmmm….? Sorry. That pesky opinion keeps popping out. These Sumo shorts don’t give you much room to hide.
But lest you think this episode is just a rant about what isn’t working, the real highlight of the show comes when Martin tells us about a new “secret weapon” that’s now available to borrowers. And he says it IS working! He says borrowers armed with this powerful new tool find themselves no longer getting squashed in their negotiations with the lender. That’s right! The little guy is starting to win. We like it.
Off mic, we impose upon Martin to write a special report on this topic, which he generously commits to do. He calls it The Underwater Borrower’s Secret Weapon: How to Make Modifying Your Loan Your Lender’s Idea. Wow. That’s a mouthful. But if you know Martin, it’s not surprising. You can bet he’ll have a lot to say – and it will be fun to read!
The bottom line (that’s a Sumo pun in case you missed it) is we got so jazzed about the whole thing, we’re working on adding the company which supplies this “secret weapon” to our resource network. Meanwhile, if you or someone you know has been wrestling with a lender that seems immovable, be sure to request Martin’s report. Maybe his secret weapon will work for you and your friends. We want to help get the secret out, so everyone has access. Not just because we like to root for the underdog. But because the sooner all these bad loans get re-done, the faster the world can get back to focusing on more productive things. And that’s good for everyone.
Listen Now
Don’t miss a show! Subscribe to the Free Podcast
Want More? Sign Up for The Real Estate Guys™ Free Newsletter!
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.
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).
Listen Now
Don’t miss a show! Subscribe to the Free Podcast
Want More? Sign Up for The Real Estate Guys™ Free Newsletter!
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!
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?
1/3/10: Happy New Year with Gary Eldred – What Does 2010 Hold?
The easiest thing in the world to do is predict the past. But what about the future? As we enter a brand new decade, what does the future of real estate look like? To find that out, The Real Estate Guys climbed the proverbial technology mountain to connect with a real estate sage – all the way from Dubai!
Sitting on the mountain top for this broadcast:
- Your real estate guru, Robert Helms
- Pillow fluffer and co-guru, Russell Gray
- Trump University faculty member, best selling author, seasoned real estate and renowned consultant, Dr. Gary Eldred, PhD.
Digging through technological challenges, The Real Estate Guys mined some golden nuggets of wisdom from special guest, Gary Eldred who called in all the way from Dubai! As someone who has studied, taught, invested, and consulted on real estate for decades, Dr. Eldred has earned the right to have an opinion. We talk stocks, bonds, gold and real estate. Gary tells us which asset class he believes will outperform all others in the new decade – and why.
Gary also reveals his strategy for hedging against economic uncertainty. He tells us which type of mortgage he prefers right now and why. As one of the most well traveled investors we know, we also were intrigued by Gary’s comments China, India and Africa – and how what’s happening there affects real estate in the US and other parts of the world. Of course, since he was calling from Dubai (where he is currently working) and Dubai’s been top of the financial news recently, we made sure to talk about that too!
Don’t miss a show! Subscribe to the Free Podcast
Want More? Sign Up for The Real Estate Guys Free Newsletter!
10/11/09: Who Moved My Cash? The New Rules of Real Estate Finance
In case you hadn’t noticed, the rules of the real estate game have changed a lot over the last 2 years – much of it driven by dramatic changes in where mortgage money comes from and how it gets to market. In this broadcast, The Real Estate Guys talks about the current state of the union when it comes to residential real estate finance.
The brains in the house for this enriching broadcast are:
- Host Robert Helms
- Co-Host Russell Gray
- “The Godfather of Real Estate” Bob Helms
- Certified Equity Happens Mortgage Consultant Marty Sonke
The show kicks off with The Guys talking about how the mortgage meltdown has affected the game of real estate investing. Then special guest contributor and mortgage originator Marty Sonke calls in to provide a front line update on what loan programs are and are not available today. Hint: There’s one segment of the market where money is easiest to get.
We also talk about the real world ramifications of recent legislation intended to “help” improve the market. HVCC and MDIA are well intentioned, but also have created some new issues for mortgage originators and borrowers. What is HVCC and MDIA you ask? Well, you’ll just need to listen to the show! 
With so many people unemployed and underemployed, many of whom are starting businesses, Marty gives us the 411 on the new rules for self-employed borrowers. He also brings us up to speed on two of our favorite tools for freeing up idle equity: HELOCs and Cash Out Re-Fi’s.
What about borrowers with less than perfect credit? Marty tells us about the new options for sub-prime and “Alt-A” borrowers.
We close the show talking about adjusting your expectations to fit the new reality of real estate finance. The game is far from over and real estate is not dead – it’s just different.
Listen to this Broadcast Now
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.
Hey, FHA! Your Fannie is Showing
Today, The New York Times ran a story headlined Concerns Are Growing About FHA’s Stability. Hmmm…that’s interesting. Especially since a major chunk of the loans funding the fledgling housing recovery is coming from FHA.
Caution: This is a long post. BUT, if you stick with it, it’s not just food for thought. There are some practical tips, so power on!
Back when sub-prime collapsed, we were hanging out with a lot of the top dogs in the mortgage business and the mantra was “FHA is the new sub-prime!” Wow. Be careful what you wish for.
So the mortgage industry re-tooled. It took some time, but eventually the industry got good at FHA and went out and sold it silly. Only 3% down! Cheap rates! Go! Go! Go! And there’s NOTHING wrong with that. It’s their job. Just like it was when the private sector made cheap and easy money available. Wonder if the evil mortgage brokers will get blamed if FHA goes down? But we digress….
What? Me Worry?
The NY Times article says that FHA Commissioner David H. Stevens “assured” lawmakers that FHA would NOT need a bailout and was “taking steps” to manage its risks.
Two things. First, let’s take a trip down memory lane. For old times’ sake, we cracked open The Real Estate Archives and found a Wall Street Journal article dated 6/7/08 in which they reported that Freddie Mac’s then CEO Richard Syron said Freddie’s financial results for 2008 will be better than last year’s. This was part of a conference call to investors where he assured stockholders, “We are quite confident that the positive changes will offset the negative.” What fire?
A month later, a 7/8/08 CNBC.com article quoted James Lockhart, the Director of OFHEO (not a cookie – Office of Fair Housing Enterprise Oversight – you know, the folks that watch your Fannie Mae and Freddie Mac). CNBC interviewed Lockhart and he said, “Both of these companies [Fannie and Freddie] are adequately capitalized.”
Just in case you didn’t believe Mr. Lockhart, MarketWatch reported on 7/10/08 (2 days later for those keeping track) that then Treasury Secretary Mr. Henry Paulson “moved swiftly…to defend Fannie Mae and Freddie Mac from critics who have called them insolvent” while testilying to the House Finance Committee.
Sorry, we know this is a blog post, not an encyclopedia, but there’s so much good stuff here.
On 7/22/09 (yes, that would be 12 days later), the Associated Press ran a headline “Congressional Analysts Peg Cost of Propping Up Fannie Mae and Freddie Mac as high as $25 Billion”. That’s a lot of money, but as we’ll soon find out, if it was ONLY $25 billion, it would be cause to party (not that we need much of an excuse).
In an interesting aside, the same AP article said Republican Senator Jim Bunning (KY) criticized Republican administration official Henry Paulson (yep, the same Henry Paulson) for “trying to ‘ram down’ his proposal to shore up Fannie Mae and Freddie Mac, which Bunning said ‘smacks of socialism’”. We tossed this side note in just in case you thought the Obama Administration were the only ones being called Socialists.
Anyway, back to Fannie and Freddie….
On July 27, 2009 (we were in Belize that day…it was fun), CNN Money reported “Efforts to use the troubled mortgage finance firms to fix housing market problems are likely to push the taxpayer bill for Fannie & Freddie above $100 billion.” That’s slightly more than the originally projected $25 billion, in case you were getting dizzy.
The same CNN Money article went on to say that Fannie has actually received $34.2 billion and Freddie $51.7 billion. Also, considerably more than $25 billion, but who’s counting?
Okay, so that was a long trip down memory lane. But the points are:
a) when the head guys say “don’t worry”, worry – or at least take a peak behind the curtain;
b) the politicians will pay almost ANY price to save housing. Why? Because voters live in houses. This pressure, like it or not, helps protect real estate values;
c) history provides perspectives you don’t get if you only live in the current headlines. That’s why The Real Estate Guys keep archives.
That concludes “thing #1″. Wait! Don’t quit yet. Thing #2 will be much shorter!
Thing #2: When the head FHA guys says, “We’re taking steps to manage risks”, it could mean tighter money: things like stiffer guidelines, lower limits – you know, the things that slow down a recovery.
For example, the FHA’s very popular Home Equity Conversion Mortgage (HECM) – the only insured reverse mortgage – has been widely reported as getting a “haircut”. That means lower loan limits. We’ll talk more about that on another day, but it makes you wonder what else FHA might do to “manage” its risks. We’ll be watching….
So, what’s the takeway from today’s post?
Track what happens with FHA. Like an over extended teenage shopper, who runs up one credit card and then moves onto the next, our policymakers have run up the tab on Fannie, Freddie, and now possibly FHA. When all the cards are maxed, they call Mom and Dad. In this metaphor, that’s you – the American taxpayer. But you don’t have any money either, so they’ll get it by taking out new credit cards (in your name) from the Chinese or whoever has money, and then pledge the fruits of your future labors (and those of children and grandchildren) to make the payments.
We’re not saying Uncle Sam and his minions shouldn’t help housing, nor are we saying they should. But it’s safe to say they will. And when they do, HOW they do it will affect the values of YOUR properties, the interest rates and availability of YOUR loans, the jobs and salaries available to YOUR tenants, the size of YOUR taxes, and the value of YOUR dollar.
In all of this change, are many problems and many opportunities. But don’t worry! Work. Study. Learn. Watch. And when you see the opportunity, take action while others hesitate.
And keep listening to The Real Estate Guys – we’ll help keep you thinking!
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.
