8/1/10: Economics, Politics and Real Estate – Interviews from Freedom Fest 2010
If you’re one of those who take The Real Estate Guys™ to the gym, make sure you carbo load first! This one’s a whopper! Our radio audience only got an hour, but the podcast audience gets the whole enchilada. That way whether you like American or Mexican, there’s something for everyone.
A few weeks back, we went to Las Vegas for the 7th Annual Freedom Fest conference. This was our first time and we weren’t sure what to expect. But after our previous interview with event founder, economist Mark Skousen, we thought it would be worthwhile. It turned out even better than we thought!
After being near the epicenter of the financial earthquake which rocked the real estate portfolios of even the most experienced investors, we’ve put a big emphasis on studying economics. Who cares if you’re expert at fixing up properties, managing tenants or putting together syndications if property values are crashing, tenants don’t have jobs, loans aren’t available, and people are too scared to act?
So we started looking for people who saw it coming, put their predictions in writing and got it right for the right reasons. Hindsight’s often 20/20, but seeing the storm coming 
while there’s still time to shutter the windows is better. You might not be able to avoid bad economic weather, but with advance notice at least you can prepare!
We looked at the lineup of speakers at Freedom Fest and decided this would surely be an eye-opening experience. We were especially excited about Peter Schiff, author of Crash Proof 2.0 (a highly recommended read!). Schiff called the crisis for the right reasons – and way ahead of time. We’re happy to say we got a lengthy interview with Mr. Schiff to see what he’s thinking now – which is the feature of our next show.
While we’re boasting about awesome interviews, we also had a chance to talk with billionaire CEO of Forbes Magazine and former Presidential candidate, Steve Forbes. That interview is coming up in a couple of weeks, so stay tuned! The best way to be sure you don’t miss any of our exciting episodes is to subscribe to our podcast via iTunes (shameless plug). 
Today’s episode is about talking to LOTS of people! It was like one of those speed dating sessions. Robert sat at the microphone from early morning to late at night, and Russ rounded up a long line of interesting people to interview.
Featured in this episode of The Real Estate Guys™ Radio Show:
- Your host, Robert Helms
- Co-host and cat herder, Russell Gray
And a long parade of very special guests (in order of appearance):
Jeffrey Verdon, Attorney, talks about estate planning and asset protection strategies utilized by wealthy individuals; including off-shore entities and a very interesting technique for funding life insurance.
Dave Fessler, Energy & Infrastructure Expert for the Oxford Club. Dave discusses his views on the future of energy and infrastructure and their impact on jobs and the economy. He also comments on “the paradox of thrift” – how consumer savings is actually fueling the recession. He tells us how long he thinks it’s going to last, and where he believes America’s best chance for job creation are right now.
Bob Bauman, Attorney, Former U.S. Congressman, Founder of The Sovereign Society; shares his thoughts on offshore investment, asset protection, second citizenship and the growing interest many people have in diversifying globally.
Vernon Jacobs, CPA, is an expert in international taxation. Vern tells us what to consider when investing or employing asset protection strategies offshore.
Robert Barnes, Attorney, is part one of two back to back interviews with lawyers from a premier tax and investment fraud law firm that went 3 for 3 (that’s pretty good!) in three of the top four high profile tax cases in the U.S. (you’d recognize the names). Mr. Barnes reveals the worst thing you can do when contacted by the IRS.
Robert Bernhoft, Attorney, is part two of our tax and investment fraud attorney interviews. Mr. Bernhoft describes what you can do to proactively avoid problems with both your investors and regulators; and shares how his firm uses specialized “non-litigation” techniques to recover misappropriated funds without going to court.
Steve Hochberg, Chief Market Analyst for Elliott Wave, works closely with Robert Prechter. Prechter’s 2002 NY Times best seller, Conquer the Crash, accurately predicted the current financial crisis. While everyone is running scared of inflation, Steve says DEFLATION is actually the big near term threat. He believes we are “on the precipice of the greatest stock market decline of our lifetime.”
Patri Friedman, Executive Director and Chairman of the Board of The Seasteading Institute. A city on the sea? Really??? Before you write it off as Looney Tunes, go to their website and look at their management team. These guys are all brilliant. We’re talking Stanford, Harvard, Yale. Wow. Have you heard of Pay Pal? Yeah,the founder is on their board. And why were they at Freedom Fest? Take a listen!
Leon Louw, Executive Director of the Free Market Foundation, all the way from South Africa! Why? To raise money to advance property ownership rights for blacks in South Africa. For what it’s worth, we didn’t see any evidence of racism at Freedom Fest, though it was full of “tea baggers”. Obviously, Leon felt people at the event would be supportive of his cause. From our observations he was right. But this isn’t a political interview. any more than our show is political. We just want to understand what people are thinking and doing, and how it creates or undermines real estate opportunities. Think about the ramifications on demand in a market where a large part of the population, formerly locked out, suddenly has access to buy property. Very interesting stuff.
Terry Coxon, author of Unleash Your IRA, shares a powerful concept for maximizing your Individual Retirement Account. We thought we knew all about this topic, but Terry shares a strategy we hadn’t considered. Now we’re hyped to read his book. With the demise of home equity, and a growing number of people predicting a tough stock market (at best); and lending getting even tighter from financial reform, we think IRA’s and rollover 401k’s are one of the BEST sources of private investment capital. That makes this a topic worth exploring!
Ron Holland, editor of two financial newsletters and 30 year financial industry veteran, has something to say on the topic of IRA’s. And it’s concerning. He shares what he thinks is the greatest threat to your retirement account.
Terry Easton, author of Refounding America and contributor to Human Events. Terry is uber-conservative / Libertarian and has a lot to say on the topics of economics, politics and real estate. We came to hear a lot of opinions and it just so happens that Terry has a lot of opinions. But since they come from a long history of study and involvement, we think they’re worth listening to.
All in all, Freedom Fest was a great experience and we’re very likely to attend next year’s event. We met great people, got valuable insights, and had our paradigms stretched (we’ve been icing them since we got back). Most of all, we see the economy and real estate from a much broader perspective. As we continue to seek out markets, opportunities and product niches to invest in, we are convinced a bigger perspective will pay huge dividends.
Remember – our next two episodes feature our interviews with Peter Schiff and Steve Forbes!
The Real Estate Guys™ Radio Show provides ideas, perspectives and resources to help real estate investors succeed.
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7/25/10: Entrepreneurs in the New Economy – Getting Paid to Solve Problems
Do you remember the old “new” economy? That was the one where technology companies could go public without profit. In some cases, they didn’t even need revenue. Ahhhh, those were the days.
The new “new” economy (the Great Recession one) hasn’t been nearly as fun – unless you’re an old school entrepreneur. That’s the kind who looks at problems as opportunities. Guys (and gals) like that are having a lot of fun right now because there are opportunities galore coming out of the Great Recession.
The Real Estate Guys™ headed off to Freedom Fest in Las Vegas a few weeks back. We heard that money manager / economist / author / Senate candidate Peter Schiff would be there (among many other people with very strong opinions about the U.S. economy) and we wanted to do some interviews. We’re happy to report we got lots of great stuff, including Mr. Schiff and the CEO of Forbes Magazine, Steve Forbes. Watch for those interviews in future broadcasts.
So we fly into Las Vegas in our private jet (the one operated by Southwest Airlines), and get to the convention venue and start setting up our booth. Before the event had even started, a man stops by and sees our banner for Belize (we were promoting our upcoming field trip to Belize) and asks a few questions. The short of it is that we find out he’s working on a very exciting project in the Caribbean – one that solves a problem we’ve been trying to figure out too. Russ gets so excited that he hugs the guy. Very weird.
After the appropriate apologies and some follow up male bonding, our new friend agrees to do a radio interview. And that’s what this broadcast is all about.
Manning the microphones for this edition of The Real Estate Guys™ Radio Show:
- Your host, the Larry King of real estate radio, Robert Helms
- Co-host, our “I love you, man” booth babe, Russell Gray
- Special Guest, Investment Banker, Entrepreneur and assault victim, Jeff Villwock
Any time we get around smart people, we jump on the opportunity to talk with them. In this case, Russ literally jumped on Jeff. When Jeff recovered, we got him on the mic, so you can listen to what he’s doing, where he’s doing it and why. There’s lots of lessons to be gleaned!
Freedom Fest is an event that attracts people with strong political opinions. In many of the interviews we did there, those opinions come out. Great! We think the world works better when people respectfully debate important issues. Sharing ideas is among the most sacred of our freedoms, especially if you’re radio guys.
We also realize that the U.S. (the bulk of our audience) is pretty polarized right now. Now, we love our entire audience and our show isn’t political. However, policies affect economics and economics affects real estate. There shouldn’t be a serious student of real estate who can look at the last several years and deny that. So politics are going to get into the discourse from time to time, which is a very good thing.
We think these Freedom Fest interviews are great. If you disagree with the political views of our guests, don’t let that get in the way of hearing what’s being said. Here’s why: a big part of real estate investing is understanding demographics and human nature. How people think and believe affects where they (and their money) will be moving. Even if you disagree with them, if they believe it, it will affect their actions. So YOU need to understand them (even if you disagree) if you want to anticipate their behavior.
Did we mention that Jeff’s project is in St. Kitts? It just so happens that St. Kitts is one of the stops on our upcoming 9th Annual Summit at Sea! So we ask Jeff if we can visit his project as part of our already planned real estate shore excursion in St. Kitts. Not only does Jeff agree to allow us to visit, he says he’ll meet us there and show us around. Awesome!
Once again, we’re reminded of the importance of getting out of our cubicles and into the world where real people are. No doubt that virtual networking is powerful, but just as phones did not replace face to face meetings, neither will social media replace conventions as a great place to make important connections. This is one of the reasons we attend trade shows and promote our field trips and the Summit at Sea™. It’s a great way to get to know great people in the real world. We hope to see YOU at one very soon!
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7/18/10: 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.
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6/27/10: Cashing In on the Changing Retail Market
Retail real estate across the country has been mauled by the recent bear market. Many large retail centers are vacant and dilapidated, while many more are under performing. What’s next for retail? More importantly, what’s the opportunity? To find out, The Real Estate Guys™ call on a big deal hunter who has over 30 years and billions of dollars of experience!
On safari in the studio for this broadcast:
- Driving the jeep in his khaki’s and bush jacket, host Robert Helms
- Pushing the jeep in his leopard skin loin cloth, co-host Russell Gray
- Riding shotgun and snacking on frikkadels, the Godfather of Real Estate, Bob Helms
- Big deal hunter, special guest Tom Morris
When you enter the jungle of real estate investing to hunt for opportunity, you never know what challenges will cross your path. Many obstacles and dangers can be avoided. Others must be met head on. Of course, when you’re hunting, your objective is to locate the prey and subdue it. In other words, there’s risk involved.
Shooting fish in a barrel or hunting rabbits is one level of risk…and one level of reward. Going after the big opportunities often entails a higher level of risk and requires a higher level of skill and experience. That’s why most investors are well-advised to start small. It’s also a really good idea to be mentored by more experienced hunters before taking on the big game.
So you can imagine how excited we were when we first met Tom Morris. He’s been hunting big time real estate opportunity for over 30 years and after billions of dollars of deals, he’s telling us that now is one of the greatest times ever to be a real estate investor. Really? Okay, we’re listening!
Although he’s very experienced in all types of real estate, Tom’s love is retail. We’re talking BIG TIME retail – as in shopping malls and retail centers with hundreds of thousands of square feet (on the small side)! Tom’s been involved in mall projects with millions of square feet and hundreds of retail tenants in a single project. Wow! THAT’S big game. Of course, if a big deal turns on you it can devour you very quickly, so you better know what you’re doing! Fortunately, Tom tells us there are many things you can do to mitigate risk.
We start quizzing Tom about the state of retail in the wake of the Great Recession. What are the problems? What are the causes? Where are the opportunities? We were SHOCKED to hear how BIG the discounts are on distressed retail assets. It’s AMAZING how, with relatively little money, you can acquire assets with HUGE UPSIDE potential. (Sorry for all the caps. We’re just EXCITED!).
BUT…(and it’s a big but), you better have a plan. And you better have connections. And you better be able to think outside the big box. If you do, then there’s BIG money to be made!
Tom shares with us some of the creative strategies he’s currently employing to acquire and re-hab distressed retail properties. Even if you don’t have plans to be a mall mogul, the principles Tom employs are applicable to other types of real estate. Besides, any time someone with 30 years and billions of dollars of experience wants to share their wisdom, we think it’s a really smart idea to listen. Our attentiveness is rewarded when Tom reveals the single most important component of his success and the #1 investment of his career.
Not everyone is able to chit chat with a big time investor. Tom doesn’t do seminars, write books or sell boot camps. He’s just out in the real world doing the real thing. That’s why you have The Real Estate Guys™! Our mission is to hunt down big brains, powerful ideas and great resources that help you succeed. Your job is to listen, learn and take action. Plus, we really appreciate it when you tell all your friends about The Real Estate Guys™. Enjoy!
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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.
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The Rich Dad Real Estate Summit
9/13/09 Scottsdale, AZ – Nearly 150 enthusiastic people gathered in Scottsdale for the 2 day Rich Dad Real Estate Summit hosted by best selling author Robert Kiyosaki and conducted by Rich Dad Advisor and real estate entrepreneur Ken McElroy. The Real Estate Guys were on hand to not only observe, but participate in this inaugural boot camp which is dedicated to teaching active and aspiring real estate investors how to succeed in the “new” real estate economy.
The event featured a host of highly qualified experts in various aspects of real estate investment including property management, financing, deal sourcing and analysis, and taxation. The event started at 9 am on Saturday morning and ran well into the evening. We didn’t get back to our hotel room (at the very nice Scottsdale Plaza Resort) until close to 9 pm, but even then we weren’t done! We had 5 different real life investment deals to review in preparation for the next day when we would divide into team and prepare and present offer letters to the panel.
Though it sounds intense, the Rich Dad team did a great job keeping the energy up with lively music, regular breaks with refreshments provided, and the trademark conversational breaks where we would discuss the topic at hand with other students sitting at our table. Not only did this break up the monotony of lecture, but it really helped reinforce our understanding of the material. Teaching is a very effective learning tool. In fact, when we were talking with Robert Kiyosaki during a recording session on Monday, he said one of the reasons he works so hard teaching is because he learns so much!
In the afternoon of the 2nd day, the crowd was divided into teams and each team was assigned one of the case study properties on which to write a Letter of Intent (LOI). It was like being on The Apprentice! The pressure was mounting to finish the analysis and craft an offer that would be strong enough to win, but without overpaying for the property. As the announcer counted down the time, the tension mounted. People were running to the front of the room to submit their offer before the time ran out!
A representative from each team was called up to sit with their competitors in front of the panel of judges. One by one, each had just 2 minutes to present the offer. Then the panel would begin to question and negotiate. Having been through this process many times ourselves, we can tell you is that very realistic!
There were far more lessons than could ever be contained in this short report, but even with all of the experience we have in the real world of real estate, The Real Estate Guys definitely discovered some new things. Plus, we made lots of new friends!
Overall, we thought it was a great event – well organized, well produced and lots of fun. We can’t wait to go to the next one!
