3/2/14: Orlando – Not Just a Mickey Mouse Market

What do you think of when you hear “Orlando”?

For old guys like us, we think of tying a yellow ribbon ’round an old oak tree. (Google it if it didn’t dawn on you what we’re talking about.)  ;-)

But for most people, Orlando is a one trick mouse.

But there’s a bigger story in Orlando that starts with Florida and involves demographics, economics and an appeal that transcends Disneyworld.

To muse on making a Magic Kingdom made up of little green houses for you and me…

  • Your magic host, Robert Helms
  • His mouse of a co-host, Russell Gray
  • Regular contributor and big brain, Ryan Hinricher

The great thing about magic is it often surprises you. And it’s almost always astonishing.  So when we heard about what’s happening in Florida…and Orlando in particular, we jumped on a jet to go see it ourselves.  It would have been more comfortable to ride inside the plane, but we got there safely.

Real estate investing in Orlando can be profitable and fun!Of course, we never show up in a market without a guide.  And in this case, we knew we were in good hands with Ryan Hinricher.

Ryan’s a true blue real estate entrepreneur.  But he also has a Wall Street background (though we don’t hold that against him), so he likes to research, analyze and interpret data.

We first met Ryan in Memphis, where he and his partners have been investing for years.  And if you haven’t been paying attention to Memphis the last few years, it’s been and continues to be one of the great real estate investment markets in the country.

But once the operation in Memphis was up and running, Ryan headed to Orlando because the data said it was poised to become one of the happier places on earth.  At least as far as real estate investing is concerned.

So what’s the big deal about Orlando (besides the Mouse)?  We’re glad you asked!  And we think you’re going to like the answers.

First, it’s in Florida.  Yes, it’s the same Florida that tanked in the recession, but as often happens… the farther they fall, the higher they bounce.  But we’re not talking about real estate prices (though they’ve been moving up nicely).  We’re talking about the critical pillars that make a real estate market work.

Did you know that Florida went from bleeding red ink to a budget surplus in these last few years?  Maybe California and Washington DC should take notes.  In fact, we’re told the budget surplus is so big that the government is actually returning a big chunk of it to the taxpayers.  What a concept!

But there’s more…

Did you know that the unemployment rate has dropped from the mid-9′s (percentage) to the mid-6′s.  In fact, in 2013 Florida ranks only behind Texas to be the #2 state for job creation!  Now we like Texas a LOT, but when you’ve got billions of barrels of gas and oil under the ground, you’ve got a strong foundation for job creation.  Florida’s had to do it the old fashioned way…by attracting people and businesses. Not to say that Texas doesn’t, because it’s great for business too.

As one of only 7 states with no state income tax, there’ an obvious reason for people and businesses to move to Florida.  And they are!  In fact, Orlando is in the top 5 fastest growing cities in terms of population.  And last time we looked, since people generally like to live, work, shop and recreate in real estate…more people is a good thing for the demand for real estate.

And just in case you were worried about how Florida could pay it’s bills without an income tax, did we mention they have a big budget surplus?  Hmmmm….Washington DC should definitely be taking notes.

But it isn’t just the great climate for business, investment (and weather) that makes Florida popular.

It’s location makes it accessible and desirable to both Europe and South America.  And a weak dollar makes U.S. assets seem cheap to foreigners who have a stronger currency.  Plus, even though a lot of people in the U.S. are concerned about the U.S., it’s still considered one the safest places to live and invest.  So wealthy foreigners are busily moving money into the U.S., including U.S. real estate.  Florida is definitely a beneficiary of some of that.

Of course, Orlando is a big convention town.  In fact, it’s the biggest convention town in the U.S.  So between tourism and conventions, lots of people come to Orlando to visit…in addition to all the people permanently relocating.

We could go on and on (can you tell?)…because there are lots of things to like about Orlando.  But listen in to our interview with Ryan Hinricher and hear it for yourself.  And your reward for reading all the way to the bottom (or listening all the way through the show) is Ryan’s free report on Orlando.  Click here to request yours now.

Meanwhile, if you’re feeling an urge to investigate Orlando, ask not for whom the bell tinkers.  It tinkers for you.  At least we tink it does.

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The Great Debt Ceiling Debate – Part 1

This is part 1 of a multi-part series on the “great debt ceiling debate” written as an accompaniment to our radio show broadcast and podcast, “Raising the Roof – How the Great Debt Ceiling Debate Impacts You”.  You can download the episode on iTunes or find it on our Listen page.

As the debate rages on about whether and how to raise the U.S. debt ceiling, it’s hard not to have any discussion of the topic degrade into political diatribes.

But as real estate investors, we’re not too concerned about what the policymakers SHOULD do (since we don’t have any direct control anyway).  Instead, we’re much more focused on what IS happening, what is LIKELY to happen, and what we can do in response to avoid loss and/or create a profit.

In short, we refer to discussions about opinions about what should or shouldn’t be done (or who’s to blame) as “political” discussions.  After all, politics is a pretty “shouldy” business.  But you already knew that, didn’t you?

We prefer that our discussions be more practical in terms of what’s likely to happen and developing a plan A, B or C to react to it.  We may have political opinions (some of which leak out from time to time), but you know what they say about opinions: Opinions are like armpits.  Everyone has them and most of them stink.  We don’t have to like each others’ political opinions to enjoy a healthy conversation about what’s happening and how it affects real estate investors.

Since the debt ceiling debate is a complex, polarizing topic with huge global economic consequences, we thought it was worthy of a bigger discussion than our regular broadcast blog.  So strap on your reading glasses and get ready for a big discussion.  And be sure to listen to the podcast on this topic also.  It doesn’t replace this article, but it will help if you’re new to all of this.

We STRONGLY encourage you to plow through it all because the discussion of the U.S. debt and financial system has a DIRECT impact on interest rates, availability of loans, job creation (the best tenants have jobs), wages and the value of your real estate – Just a few things that are probably pretty important to you.

In a Rising Tide, All Ships Rise and Vice-Versa

We all found out a few years ago that no matter where or what kind of real estate boat you were floating, when the MBS (mortgage backed securities) money drained out of the tub, values dropped.  Really astute investors paid attention to the macro trends BEFORE this happened and drained their own equity while the tide was still high (back in 2005 we did some shows on “equity hedging strategies”, which you can find in the Backstage archives).  The rest of us learned (the hard way) that we better pay closer attention to the big picture for next time.

The big question is: will there be a next time?  That is, will real estate values rise again?  If real estate is down, never to rise again, then you can still make money, but you need to approach the problem differently.  If the tide of currency (the money supply) rises, then real estate values are likely to rise over time and you would structure your portfolio accordingly.

So what’s LIKELY to happen? And how does the debt ceiling debate impact you?

You could say that prices are so low they can only go up.  Just like at the peak, when people said that prices were so high they could only go down.  Those are nice sayings, but even a broken clock is right twice a day.  What are the economics behind the predictions?  Is it all such a complicated mystery that merely guessing or listening to the loudest voice is the only way to know?

No.

Here’s the good news.  You can understand all this.  In fact, you may be surprised at how easy it is.  So the goal of this series of articles and the accompanying podcast is to give you a basic understanding of “the mechanics of the money”, so you can begin to plot cause and effect, then decide for yourself what you think will or won’t happen.  But keep in mind, the best strategy will consider all possibilities.

At a recent conference, we heard a quote that has become one of our favorites:

“Better to prepare, than to predict” – Henry Brock

So in this series we’ll take a look at what happens if the DO raise the debt ceiling and what happens if they DON’T.

Of course, who can resist the temptation to predict?  So, at the end, we’ll go out on a limb and make a prediction.  Just keep in mind that our prediction is just our own opinion, and probably about worth what you paid for it. ;-)

Ready?  Here we go.

The U.S. Money Supply

First, let’s talk about how money gets into the U.S. system.  When the government needs money, the Treasury either taxes (takes it from the productivity of the people) or borrows (pledge the future productivity of the people).  Since the government has a chronic problem of spending more that it takes in (does that happen?), it’s no surprise that they both tax AND borrow.  In fact, most of the taxes go to pay the interest on the debt.  But no matter how you slice it, the productivity of the people pays the bill.

When Uncle Sam borrows, he writes IOU’s called bonds and sells them in the open market.  Uncle Sam’s bonds are called Treasuries and, at least up until recently, Treasuries have been considered the safest debt you can buy.  After all, they’re backed up by the “full faith and credit of the U.S. Government”, which is really an euphemism to say “the full power and authority of the I.R.S. to tax the earnings of the most productive people on the planet”.

Do you feel any temptation to talk politics?  Stay calm.  Keep your arms and ammunition in the vehicle until the ride comes to a full and complete stop.

So who buys Uncle Sam’s IOU’s?  Lots of people.  Private investors, banks and foreign governments to name a few.  Over the last several years, China has purchased trillions and is now the largest single foreign holder of U.S. debt.  Recently, there’s been another big buyer whom we’ll talk about momentarily.  But for now, let’s talk…

Interest Rates

If you’re already bored reading all this, just think about how important interest rates are to you.  From your savings account, to your mortgage, to your credit cards, to your car loans and all your investment properties, interest rates affect what you earn and what you pay.  More importantly, interest rates are at the heart of the great debt ceiling debate and the motivation behind much of the Fed’s monetary policy.  So stick with us, even if you’re not sure how the Fed’s policies affect you.  You’ll know before this is over.

Interest rates are the price the lender charges for the risk of making the loan.  That’s why if you have bad credit or bad collateral, the rates are higher.  Common sense, right?

But interest rates are also a function of supply and demand.  This means that when there’s lots of money to lend, but not too many borrowers, rates are low.  The lender lowers the price to entice you to borrow.  Low rates encourages borrowing.  High rates encourages saving.  Think about that one.  But not for too long, because we need to move on.

Conversely, if a borrower wants ( really needs, is desperate, etc.) to borrow, he may have to offer a higher interest rate to attract a lender’s money.  In other words, if there’s a big demand for loans, but not many lenders willing to lend, the interest rate a borrower must offer to a lender will rise until someone wants to buy the debt (make the loan). So far so good?

The Bond Market

Remember: Bonds are debt.  So when someone buys a bond, they are effectively lending to the bond issuer.  So when Uncle Sam wants to borrow, he goes into the open market to sell bonds.  This is elementary to some of our audience, but less so to others, so in keeping with our “no investor left behind” mantra, we wanted to make that clear before moving forward.

Now, let’s talk about that other big bond (debt) buyer we mentioned earlier: The Federal Reserve or “The Fed”.  That’s the private (as in, not Federal) network of international banks (that is, not U.S.) whose leader is  appointed (that is, not elected).  How accountable is the Fed to the United States citizenry?  You don’t want to know.  Let’s just say, not very.

Contrary to popular myth, the Fed does NOT set interest rates – at least not directly for things like Treasury Bonds.  The interest rates the Fed sets are the rates at which the banks do business with each other. There’s two: the discount rate (what banks pay when they borrow from the Fed) and the federal funds rate (the rates banks pay when they borrow from each other).  We’re not going to talk about those now because they have nothing to do with the debt ceiling or Treasuries. Well, that’s not entirely true, since Treasuries are competing with banks for the savings of all the “A” students who produce more than the consume and save the excess.  So if the Fed wants Treasury rates low, the banks better be low too, or people would put their money in FDIC insured savings accounts.

Hmmm….there seems to be a relationship between the Fed, the banks and the bond market.  This would be a fun topic to explore, but we’ll leave that to you for extra credit.  For now, we just don’t want you to confuse the rates the Fed sets directly (the Discount Rate and the Federal Funds rate) with how yields (interest rates) are established in the open market where bonds are sold.

Summary of Key Points

  • Money gets into the system when the Fed purchases U.S. Treasury Bonds
  • Interest are determined in the open market by supply, demand and risk versus reward
  • Private investors, including the Fed, purchase U.S. Treasury Bonds, effectively lending to Uncle Sam
  • U.S. Treasuries are considered the safest of all all debt (so far) and are the basis for virtually all other bond offerings, with higher risk investments paying higher interest rates

In our next scintillating article in this series, we’ll discuss the mechanics of how the Fed affects interest rates on Treasury Bonds and why you should care. Don’t miss it!

3/27/11: Turnkey Rental Property Solutions for Busy Investors

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Sometimes people confuse real estate investing with running a real estate business – especially when everyone says you’re supposed to run your investments like a business.  Confusing isn’t it?  That’s why many people simply turn their money over to Wall Street.  It’s painless and easy.  Like a scalpel.  It’s all fun and games until someone loses their net worth.

Real estate attracts people who want to be closer to real tangible investments they can understand and have more direct control over.  But not everyone has the time, talent or temperament to find, fix up and rent out properties.  So before you pick up a hammer and plunger, you may want to look at turnkey rental property solutions as a great way to get in on all the amazing bargain inventory available today.

What is a turnkey property solution you ask? We wanted to know too, so after our wives had us scour the sink, they let us out to scour the country – and we found a guy who’s been in the turnkey rental property business for nearly 10 years.  He called in and our crack engineering crew patched him into the broadcast.

Lending their voices to this sparkling edition of The Real Estate Guys™ Radio Show:

  • Your host and shining star, Robert Helms
  • Co-host and chief scrub, Russell Gray
  • Turnkey Rental Property Purveyor, Practitioner and Pontificator, Terry Kerr

With all the talk about unemployment and real estate entrepreneurship, what if you’re one of the throwback investors who actually have a good job with good income and some investment capital you want to put to work?  That’s where a turnkey provider comes in real handy.  They’re in the business of buying, fixing up, renting out and handing over to you a plug n’ play cash flowing property – complete with long term property management in place.  Now doesn’t that just sound groovy?

But (and as always it’s a big one), not all “turnkey” providers are the real deal.  With all the distressed inventory in the market, banks are dumping it wholesale.  That can be good, but just having a property flipped to you doesn’t mean it’s plug ‘n play.  It end up as “pull the plug”.  Not fun.

To help you avoid this terrible fate, Terry Kerr shares his tips for turnkey property investing – and gives us some local knowledge on a low cost, high cash flow market that you’ve probably heard of, but may not know that well.  And pay attention, because we persuaded Terry to produce a special report on this tantalizing topic so you don’t have to take too many notes. ;-)

The Real Estate Guys™ Radio Show podcast provides education, information, training and resources to help investors make money with their real estate investing.

12/12/10: International Real Estate for Resort, Investment or Safe Haven – Pros and Cons of a Changing Landscape

Whew!  That’s a big title.  But it’s fitting for a big topic – one that reminds us that the world is not only getting smaller, but is changing rapidly.

Money, jobs and people are moving around the world like never before. And while fewer people may feel rich coming out of this recession, there are other good reasons many are still looking at international real estate – both as an investment strategy and a safe haven hedge against inflation.

While we were at the International Property Congress in Miami Beach, in addition to talking big picture economics with National Association of Realtor’s Chief Economist Lawrence Yun and Federal Reserve Bank VP Thomas Cunningham (see our 11/21/10 show), we sat down and talked about who’s buying international real estate, where and why.

Behind our well-traveled microphones for an international chat-fest:

  • Your host, the internationally renowned Robert Helms
  • Your co-host and internationally obscure Russell Gray
  • The man who has seen more changing landscapes than a migrant farm worker, the eternally international Godfather of Real Estate, Bob Helms
  • Special Guest #1: International Property Journal reporter, Kevin Brass
  • Special Guest #2: Representative from SECOVI, a Brazilian real estate trade association, Flavio Amary

It’s no secret that every country in the world has it’s own unique strengths and weaknesses.  As the dominant economy in the world, Americans have long enjoyed a uniquely stable and high quality of life.  It wasn’t necessary or commonplace to travel abroad.  Even today, the  majority of Americans do not have passports.

However, the world is changing.  The US dollar, while still the dominant currency, is facing serious challenges.  Job losses, deficit spending, an aging populace and huge unfunded entitlements are all piling up on Uncle Sam.  Meanwhile, other countries are emerging as powerful economies in their own right – most notably China.

But this isn’t an episode about the woes facing the US.  These aren’t the first challenges and they won’t be the last.  Every country has its ups and downs.

This episode is about discovering how and why the dynamics of the world’s economies are changing the way people are approaching real estate.

While we’re more traveled than the average American, we took the opportunity while in Miami to connect with Kevin Brass.  Kevin has been covering the international real estate industry for over 20 years and his articles and analyses have been regular features in the International Herald Tribune and the New York Times.  Today, Kevin writes for the International Property Journal.  His work takes him all around the globe and keeps him connected with many industry leaders worldwide.  In this episode, Kevin shares his perspectives on the changing landscape of international real estate.

We also discuss some recent changes to the once vaunted tax and privacy advantages of Panama, who recently entered into an information sharing agreement with the United States.  Tax and privacy advantages are often a prime motivator for people to acquire real estate and move to a particular country.  Is what happened in Panama a portend of things to come?

Of course, what would an episode on international real estate be without an interview with someone with one of those really intriguing accents?  We were privileged to find someone who not only sounds really cool, but has some very useful things to share with us about the robust economy of Brazil.  If you haven’t been paying attention to Brazil, you may be surprised to hear about what’s happening there.  Hint: not everyone’s in a recession.

Buone Feste, Boas Festas, Felices Fiestas, Frohe Festtage, Wesołych Świąt, Bonnes vacances, Sarbatori Fericite and Happy Holidays!

The Real Estate Guys™ Radio Show podcast provides education, information and training to help investors make money with their real estate investments.

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12/5/10: Best Of Replay – Career Opportunities in Real Estate

BIG MONEY!  FLEXIBLE HOURS!  BE YOUR OWN BOSS!

Sounds like a late night infomerical pitch, right?  Well, not exactly.  You’d have to throw in “NO MONEY, NO BRAINS, NO TALENT and NO EFFORT NEEDED!  Your shoes don’t even have to match!  For just three easy payments, we’ll show you how YOU can become the next Donald Trump!”

Why do these pitches work?  Because people almost universally want big money, flexible hours and to be their own boss.  These are some of the great appeals to real estate as a career.  And when the traditional job market is depressed, even more people look at real estate as way to make money.   Have you noticed that the job market is depressed lately?

Even though for the casual observer, some (most?) of the glitter has rubbed off real estate, the reality is that prices and interest rates are better than they’ve been in years.  These once-in-a-lifetime circumstances are drawing investors into the marketplace.  And with the Fed overtly committed to aggressive “quantitative easing”, it isn’t hard to imagine that somewhere down the road price appreciation will return to normal levels (at least!).  But we digress.

The point is that there’s a lot of work to be done in the real estate market to move properties from distressed owners back to banks and then to new owners.  And in many cases, the property will change hands more than once, as investors insert themselves into the process.  It seems to us that with a lot of people out of work and a lot of work to be done, some folks might want to revisit real estate as a way to make a living.

While most people think of a career in real estate primarily as selling houses to people who’ll live in them, there are actually many other options!  In this episode, The Real Estate Guys™ explore the variety of opportunities available when considering real estate as a full time vocation, whether as an agent or an investor – or both!

In the silver DeLorean radio studio for a trip Back to the Future for a show originally broadcast in 2008:

  • Your host and professor of pontification, host Robert Helms
  • Your co-host and fondler of the flux capacitor, co-host Russell Gray
  • The Father Time of real estate, the Godfather, Bob Helms

Enjoy and Happy Holidays!

The Real Estate Guys™ Radio Show podcast provides education, information and training to help investors make money with their real estate investments.

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10/31/10: Halloween Horror Stories – Getting the Lessons When Things Go Wrong

Sometimes real estate is hard. You want a rent check, but get a reality check instead.  However, the best lessons often come from studying problems, so next time, you can avoid them – or least solve them faster.

So once a year at Halloween, we set aside an episode to look back over the year and pick out just a few of real life case studies where a property owner endured a difficult and often painful problem with their property ownership.

Sitting on the tomb behind the microphones in our radio crypt:

  • Your scary smart host, Robert Helms
  • Creepy co-host, Russell Gray

In this episode, we discuss six different tales of trouble – and look at the problem, the solution, and most importantly, the lesson.  So grab your Jack O’Lantern and Trick-or-Treat bag and get ready to collect several tasty tidbits of real estate wisdom from these horror stories of real estate reality:

  • Those Pesky Swamp Things – Creative solutions to tenant service when they’ve lost their cool and the heat is on.
  • It Came Through the Ceiling -  Water you going to do when your all wet tenant’s trying to soak you?
  • A Deal Too Good to Be True – Come on over and I’ll sell you a story, but is it okay if I don’t have a title?
  • When the Levy Breaks – Don’t lien on me when things go wrong.
  • The Hand in the Till – Could you manage to send me an explanation of these expenses?
  • Master and Servant - It’s all good until it’s not, then when a one-size-fits-all lease doesn’t, it can give YOU fits.

Enjoy this spooktacular show!

The Real Estate Guys™ Radio Show podcast provides education, information and training to help investors make money with their real estate investments.

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10/24/10: Big Profits without Wall Street or Tenants – How Private Investors are Making Money from the Financial Crisis

When an economy burns down, the landscape is charred and the financial food chain is disrupted.  Viable businesses starve for funding, while investors hunger for return.  The normal eco-system has broken down and sources of capital and investment opportunities aren’t where they’re supposed to be.  Everything is in disarray and the ensuing uncertainty breeds fear.

But it also brings opportunity.

Sadly, after an economic forest fire, most people focus on what’s burned.  They hang around the old Wall Street and banking feeding grounds, waiting for things to grow back and settling for low returns or grubbing for hard to find funding.

But others are able to find new pastures simply by looking past the beaten path and seeing where the new opportunities are growing green in more fertile soil.

We found a guy who’s doing something so brilliant that we decided to dedicate this episode to cultivating our understanding of his model.

Plowing through the conversation in the studio for this adventure in broadcast excellence:

  • Your show host and real estate Yogi, Robert Helms
  • Co-host and Boo-Boo bear, Russell Gray
  • The man with the Smokey voice, the Godfather of Real Estate, Bob Helms
  • Special guest, investor and real estate entrepreneur, Ron Black

A few episodes back, Ron Black called in and seeded our minds with the awareness that in today’s charred economy, conventional banking is failing to feed the needs of both savers and borrowers.  Interest rates paid to savers are too low.  Access to loans for consumers and business is too tight.  Even well qualified borrowers are having a hard time finding the funding needed to grow the economy.

For investors in the past, long term appreciation has proven to provide plenty of financial timber for building a strong retirement.  Just buy stocks and real estate, water them faithfully, and in time they grow into mighty oaks of equity.  But today, the economic forest has burned down – and while those who plant now will likely have some big trees in 20 or 30 years, what if you don’t have that much time?

For baby boomers, the last 10 years of buy and hold stock investing has been disappointing at best. The Dow hasn’t grown.  It’s even worse for retired folks trying to live on interest income when yields are low single digits.  When you’re living on interest, if rates go from 4% to 2%, you just suffered a 50% pruning.  Ouch.

When it comes to personal finance, conventional financial planning models are struggling to adapt. The whole system is designed to sell stocks and bonds through the Wall Street machinery and to park money in the banking system.  Then these “experts” take your money and (as we’ve all now sadly discovered) they do all kinds of risky things, most of which the average person doesn’t understand, can’t control and probably wouldn’t approve of.

Conservative individual investors have been gravitating more towards dividend paying stocks. These stocks are typically issued by big companies with solid profits (or at least as solid as they can be in a fragile economy).  With yields of 6-8% and the opportunity for long term capital gains, we understand that this looks “good” compared to whatever green shoots are peeking out of the charred landscape of traditional Wall Street offerings.

Of course, if times get tough for the dividend paying company, they may choose to reduce or eliminate the dividends.  Or, perhaps they’ll incur debt or distribute vital reserves to continue to pay dividends when they really can’t afford it.  If this happens, you can bet the stock price will drop, which makes an exit in favor of a better offering potentially expensive.  Buy high and sell low is not a winning formula.

What about high yield bonds? Money for top quality corporate borrowers is pretty cheap right now.  The best companies are sitting on piles of cash waiting for the economy to stabilize.  They hardly need to borrow and wouldn’t pay much to do so.  So high yield bonds are likely to carry substantial risk.  Plus, are you ready to trust the Wall Street credit rating agencies again?  You know, the ones that gave sub-prime mortgage backed securities a trip A rating?  We’d rather go for things that we can see and understand.

Then there’s high interest savings accounts and high yield CD’s.  But remember, today’s definition of “high interest” is maybe 3-4%. Whoopee.  Plus, the better rates mean locking the money up for years.

So the conventional investing trees are pretty bare right now.

The problem with the Wall Street model is that investors are too far removed from the actual investment and have so little security if something goes bad (does that really happen?), that even in the good times, it’s still risky.  The only reason it doesn’t feel risky is because Wall Street insulates you.  Plus, all the slick marketing is intended to make you feel like giving your money Wall Street and the banks is not only normal, but your only choice.

With so much retirement planning marketing built on the Wall Street model, most people don’t have any idea where to find another option – or even what it would look like.  And when they do, those Wall Street paradigms pop up and prevent people from seeing that low risk, high yield, short term, cash flow investments are possible in today’s market – specifically because the Wall Street systems have broken down.

In this episode of The Real Estate Guys™ Radio Show, our special guest Ron Black describes how he identified a void left by the breakdown of the traditional mechanisms for matching investors with yields.  Best of all, his model cuts out Wall Street and the banks (after all, they’re really just high priced middlemen) and gets the investor very close to their actual investment.

The bottom line is that double-digit high yields are currently available on short term, secured investments which are easy to access and understand. It’s something anyone can do in today’s market to supercharge their portfolios, whether seeking current income or long term growth of principal.  Think of it as Miracle Gro for your portfolio.

You’re gonna like this show!

The Real Estate Guys™ Radio Show podcast provides education, information and training to help investors make money with their real estate investments.

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10/17/10: Avoiding PMS – The Single Most Important Element for Healthy Cash Flow

When your real estate investments are properly managed, money flows in each month like clock work.  But when the monthly flow is accompanied by pain, it could be a sign of Property Management Stupidity or PMS.

When PMS sets in, it can severely cramp cash flow and may be accompanied by heavy bleeding.  Investors suffering from PMS are often very irritable.  PMS is known to play a role in the break up of marriages and partnerships.  Left unattended, PMS causes balance sheet anemia and can lead to embarrassing stains on a previously lily white credit score.

To help you avoid getting your undies in a bunch when dealing with this sometimes messy and often unspoken topic, The Real Estate Guys™ sit down with a second generation property manager and past President of a local chapter of the National Association of Residential Property Managers.  We discuss the causes and cures of Property Management Stupidity and how to keep your monthly cash flow safe and sanitary.

In studio for today’s real estate radio show podcast for this absorbing conversation:

  • The best darn real estate radio talk show host in the world, period!  Robert Helms
  • Your sometimes bloated and sensitive co-host, Russell Gray
  • A man who has avoided PMS throughout seven decades of investing,  The Godfather of Real Estate, Bob Helms
  • Special expert guest and seasoned property manager,  Jay Hartley

A comfortable monthly flow of cash is the life-blood of financial success for households and businesses.  Cash flow is what a professional investor buys when purchasing either stocks or real estate.  Fundamental price appreciation (not that which is merely caused by inflation) is a reflection of cash flow and the market’s willingness to pay for it.

So when it comes to real estate investment, it seems investors would pay close attention to finding the best property management company available.  But sadly, most landlords don’t focus on property management until they’re in pain and are trying to stop the bleeding.   Then they impatiently hand their new property manager a big mess to clean up.

But there’s a better way!

Listen to this podcast and discover:

  • How to find the best property management company
  • Stop the bleeding on your rental house and other rental property
  • Avoid loss to your real estate investment and make money as a property owner and landlord

The Real Estate Guys™ Radio Show podcast provides education, information and training to help investors make money with their real estate investments.

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9/12/10: Making Mentoring Work in the Real World – Myths and Facts about Modeling Success

Real estate investing is art, science, vocation and lifestyle all wrapped up in one.  It has its own language, community and culture.  Who you surround yourself with will determine the attitudes, habits, beliefs and skills you will develop.

With so much money to be made, many aspiring investors are willing to pay large sums to have someone teach them how to succeed.  Attracted by a marketplace full of bargains, many people are getting into the game – and they’re looking for help.  So we thought it would be a good idea to take a look at the topic of real estate investor mentoring.

Sitting on the studio mountaintop dispensing sage real estate wisdom:

  • Your host and guru, Robert Helms
  • Co-host and associate guru, Russell Gray
  • Special guest, former school teacher turned full time real estate investor, David Campbell

Listen in on the conversation as we explore the shortcuts to success that are available by learning from the knowledge, experience and wisdom of others!

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8/15/10: How Capitalism Will Save Us – An Interview with Steve Forbes

The Real Estate Guys™ sit down and talk with Steve Forbes about jobs, the economy and real estate.

We don’t know about you, but any time a billionaire, a CEO of a major company, a best selling author or a legit presidential candidate is willing to sit down and chat, our response is always, “Yes!”.   In this case, our special guest for this episode, Steve Forbes, is ALL of those things wrapped into one.  So we’re super jazzed to bring this exclusive interview to you.

In the broadcast booth at the Freedom Fest conference in Las Vegas:

  • Your Host and interviewer extraordinaire, Robert Helms
  • The just-happy-to-be-here Co-host, Russell Gray
  • Special guest, Forbes Magazine CEO, Steve Forbes

Mr. Forbes was the keynote speaker at the Freedom Fest conference and remained in attendance for the entire event.  In spite of a recent neck surgery, he was very accommodating and so Robert was able to sit down with Mr. Forbes for an impromptu interview.

Steve Forbes with Russ and Robert at Freedom Fest. Russ wrestled Steve into doing the interview, which broke Russ' glasses and injured Steve's neck. But the interview went well and we were all smiles afterwards.

We decided to ask him about his latest book, Why Capitalism Will Save Us – Why Free People and Free Markets are the Best Answer in Today’s Economy. Mr. Forbes’ thesis is that too much government is bad for business because it increases costs, diminishes productivity and takes too many resources away from creating jobs for an ever-growing population.  He calls for “sensible rules of the road” to provide a basic framework in which free people can conduct business.  Of course, the great debate is over what’s “sensible”.  His position is that less is more.

What we’re really interested in is jobs. Jobs are where our tenants get their rent money.  It’s where home buyers get the income stream to make the mortgage payments that prop up the property values that create passive equity.  Jobs are near the top of our due diligence check list when evaluating a market to invest in.  It’s one of the reasons we like Dallas right now.  Among U.S. markets, it’s doing pretty well.  Ironically, another great job market is Washington DC, but if there’s a changing of the guard over the next couple of elections, that could change.  But we digress…

So Mr. Forbes shares his thoughts on the economy, job creation and the role of government in real estate, specifically Fannie Mae and Freddie Mac.  In his position as the CEO and editor-in-chief of Forbes Magazine, he gets to talk with many of people who shape, interpret and respond to public policy.  We really enjoyed our time with him and hope you will too!

On a side note, Steve Forbes is the nicest billionaire we’ve ever interviewed.  Actually, he’s the only billionaire we’ve ever interviewed.  But he’s still a very nice guy.  So, if you’re a billionaire and want to come on the show and be nice to us, just give us a call.  Our door is always open. :-)

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