The 9th Annual Investor Summit at Sea™ Announced

The Real Estate Guys™ 9th Annual Investor Summit at Sea™
April 3-12, 2011

It’s going to take a MIRACLE to top our 2010 Summit.   So that’s just what we ordered up!

The 2011 Investor Summit at Sea™ will be aboard the fabulous Carnival Miracle!  And we’re sure the 2011 Summit will be our BEST EVER.

Check out our AMAZING WORLD CLASS FACULTY:

• Real estate entrepreneur, best selling author and Rich Dad Advisor® KEN MCELROY
• Creative real estate mastermind, author and Rich Dad Advisor® WAYNE PALMER
• International real estate developer and economist BETH CLIFFORD
• International entity strategist, attorney MAURICIO RAULD
• Real estate broker, 50+ year investing veteran, the “Godfather of Real Estate” BOB HELMS
• Your hosts, The Real Estate Guys™, ROBERT HELMS and RUSSELL GRAY

Our 2010 students attend classes onboard while we sail to the next port.

NEW! Expanded schedule includes 30+ hours of seminars and workshops at sea.  This is the MOST classroom time in our history!

Plus:  Investor and Advisor Roundtable discussions and an optional educational shore excursion.  And you won’t want to miss our famous Summit beach party!

Imagine the value of just ONE GOOD IDEA or STRATEGIC RELATIONSHIP!

At our last Summit we had serious investors from five different countries, plus an all star faculty!  Where else can you go to have the opportunity to spend 9 days and nights with a group like this?  Don’t miss the boat!!!

• Our 2011 Investor Summit at Sea™ Itinerary
• Pricing and Registration
• Top 10 Reasons to Sail the Caribbean with The Real Estate Guys™
• Frequently Asked Questions

SPACE IS LIMITED due to on-board meeting room size constraints.  And once we’re sold out, we can’t expand.  So, act now to reserve your spot on The Real Estate Guys™ 9th Annual Investor Summit at Sea™!  You’ll be glad you did.

5/9/10: Shifting Gears – True Confessions of a Reborn Real Estate Investor

A bend in the road is not the end of the road – unless you fail to make the turn! Your ability to adjust to a rapidly changing landscape can be the difference between staying on the road to riches or flying off a cliff.

For many investors, the last three years have been a total wreck.  For others, it’s been a challenging off-road excursion.  For some, it’s been a real test of their abilities to operate their investment vehicle under the most extreme conditions.  In any case, there are great lessons to be learned from everyone’s experiences.

So we decided to catch up with one investor who’s gone from rags to riches to rags and is coming back bigger and better than ever!

At track side for this episode:

• Ace Driver and Show Host, Robert Helms
• Crew Chief and Co-Host, Russell Gray
• The Godfather of Real Estate, Bob Helms
• Special Guest, the Comeback Kid, David Campbell

From Donald Trump to Walter Sanford to Robert Kiyosaki to Wayne Palmer, we never get tired of hearing the riches to rags to riches stories.  Successful people are successful – even when they’re failing – because they know how to manage their fears, analyze their failures, get the lessons and take effective action to come back bigger and better than before.

David shares his humble beginning as a high school band teacher with big dreams but small means.  He then talks about his road to riches and the challenges he faced when his California Dream was taken down by the meltdown.

The faster you’re going, the quicker you need to react to changes in the landscape.  David takes us through his thought process as he shifted his investment philosophy, strategy and tactics.  Today, he invests very differently than when he started and is enjoying great success.

David reveals the markets, property types and investment objectives he is pursuing today.  Plus, he shares one specific technique he used to acquire property – even though he didn’t have much cash or credit to work with.  This is one of our favorite shows!   We think you’ll like it too.

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May 14-16, 2010: Field Trip to Dallas, TX

We just got back from our 8th Annual Investor Summit at Sea where we got to hang out with some of the biggest brains in real estate.  One of our special guest faculty members was Robert Kiyiosaki’s Rich Dad Real Estate Advisor Ken McElroy.  Ken has over 10,000 rental units and is adding more each month!  We’re not sure how many you have, but we’re guessing Ken’s a little ahead of most folks.

Market Selection Matters
Since we’re big believers in picking the market first and the finding the best deal in the right market, we naturally asked Ken which markets he likes best and why.  One of his favorites is North Texas and the Dallas/Ft. Worth area.  That made us feel really smart, since we’ve been fans of Dallas for the last couple of years.  Ken’s always been a die hard cash flow investor (even though he loves to force equity through re-hab), so no surprise he likes Dallas.  The GRMs / cap rates have always been pretty attractive there (if you don’t know what we just said, see Equity Happens pages 312 to 315).  But, good rents relative to purchase price is only one part of the market selection process.

One of Ken’s keys to successful market selection is jobs.  How may are there?  What kind are they?  How much do they pay?  How stable are they?  Inquiring minds want to know!  Texas is the top ranked stated for ease of doing business and has strong track record of job creation and preservation – even during the latest recession!  That alone should warrant a closer look.

Whenever we hear enough of the right people saying a market is worth looking at, we pack our bags and head to the airport to go check it out.  After we get to know some folks and do a little business, if we like the market, we invite our inner circle to join us for a field trip.  Since we’re broadcasters, our circle is pretty big.  And guess what?  You’re in it!

YOU’RE INVITED to The Real Estate Guys™ Field Trip to Dallas Texas on May 14-16, 2010!

Can’t make that one?  That’s okay!  We got so excited we decided to schedule not one, but TWO MORE dates:  June 11-13 and July 9-11. Now, you don’t have any excuse.

But, we only take one (small) bus load at a time, so SPACE IS LIMITED.  Our accountant says that’s stupid because if we did one trip with hundreds of people it would be more economical.  Maybe.  But it’s hard to see out the window with another field tripper in your lap.  And if we had more than one vehicle, someone is sure to feel left out.  Who gets to ride with the tour guide and who has to ride in the other van and read lips from across the traffic lane?  So, the accountant is overruled and we’re doing three cozy trips instead of one giant trip.  Plus we made it really affordable!

For only $699 per person (double occupancy), you get:

• Ground transportation
• Hotel accommodations
• Meals and snacks
• Notebook with market information
• All educational sessions
• A guided tour of several sub-markets and properties
• Introduction to local market experts and service providers

These items are NOT included:

• Airfare or other transportation from where you are to the Dallas airport
• Any investment properties you decide you want
• Uncomfortable, high pressure, hard-sell from desperate real estate agents.  This is an EDUCATIONAL event.
• An autographed Tony Romo Dallas Cowboys jersey (we have to draw the line somewhere)

Not sure it’ll be worthwhile?  Check out these comments from some folks who attended previously:

“I definitely recommend this. The trip gave me different insights when evaluating a market. Really enjoyed spending time with other investors and the general real estate conversations.” – Leslye S., Mission Viejo, CA

“I likely will invest in this market soon. The field trip is absolutely a must if you are interested in Dallas and have not been there. – Markus M., Detroit MI

“It is great to actually see an area that is growing and makes sense to invest in.  Also, I got a better understanding of how a property manager thinks and sees things.” – Jerry B., Turlock, CA

“As a real estate agent and regular listener of The Real Estate Guys, I learned many points when assessing an area. I would recommend this trip very strongly.” – Kathy B., Maui, HI

“Excellent source of information. Amazing! After this weekend, I have decided to go on the cruise!!!” – Peter E., Austin, TX

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!

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

Seven Lessons from the Summit at Sea

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

All the best!

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

4/18/10: Does It Still Make Sense to Own Your Own Home?

Home ownership is the American Dream.  Or is it? For many, home ownership has turned out to be a nightmare.  So we decided to examine the pros and cons of owning the roof over your head.

In the house for today’s show:
•    Your Host, Robert Helms
•    Co-House and Chief Housekeeper, Russell Gray
•    The “Godfather of Real Estate”, Bob Helms

You know the world is changing when the sacred and indisputable wisdom of owning your own home is called into question – especially by guys like us who LOVE real estate!  So what gives?

As investors, we look at real estate as a financial vehicle.  We buy it to produce a particular financial outcome.

However, many people also look at their home as “investments”, but a home is so much more.  Robert Kiyosaki says your home is a liability because it takes money out of your pocket.  Others argue that if your house is going up in value faster than you’re putting money into it, that it’s actually an investment.  Both are valid perspectives.  So we start this broadcast by posing the question:  If the house is NOT going up in value, does it still make sense to own your home?

On its face, this seems like a financial question.  So the next topic of discussion revolves around doing the math and comparing the value proposition of owning versus renting.  It’s hard to do the math on the radio, but if you listen really hard, you can do it.  Or as Led Zeppelin says, “The tune will come to you at last.”

But there’s more to the analysis than just comparing rent to a mortgage payment, so we delve into fun topics like liability, financial responsibility, privacy and more.  Hey, no one said thinking was easy!

While every investor knows not to get emotionally involved with a property, it’s much harder to maintain such a discipline when home is involved.  Bob and Robert sold residential real estate for many years.  They understand very well the emotional attachments people can have to a piece of real estate and how they affect financial decisions.  To make a good decision, do you need to leave your emotional baggage at the curb?  Or do you place a financial value on intangible considerations and then factor them into your equation?

The show wraps up with talk about the emotional considerations beyond the finances.  If you’re an investor dealing with residential property, it’s important to understand how emotional attachments can affect you, a seller, a buyer or a tenant in terms of the financial price one is willing to pay in order to own, dispose of or enjoy a piece of property. Every person, situation and property is different and the human element is what makes real estate so very interesting and potentially profitable.

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The Great Wealth Transfer is Underway! Which side are YOU on?

Imagine being a passenger boarding the Titanic for its maiden voyage. Today, we all know how that story ended.  But what would you have paid to know what was going to happen BEFORE it happened?  Or at least while there was still time to save yourself and your loved ones?

The US economy has long been considered unsinkable. When the economic waves of the world get choppy, investors worldwide seek shelter in US bonds.  And the US government has been all too happy to sell those bonds and go deeper and deeper into debt.  Today, almost daily we hear about record setting deficits and new debt ceilings.  It’s easy to be confused and simply tune out.  There were people dancing on the deck of the Titanic even as it was sinking.  They were too busy having fun.

They say that people who fail to learn from history are doomed to repeat it.  If you thought graduation meant no more studying and no more tuition, you might want to think again.  It’s been said that in the history of the world, no economy has survived a 98% devaluation of its currency.  The US is at 95% today.

What does all this mean?  More importantly, what does it mean to you?  MOST importantly, what can you DO about it?

We think the first and most important thing a concerned individual can do is get educated. There are great books, podcasts and seminars available.  One of our favorite teachers is Robert Kiyosaki and the Rich Dad Company.  He’s a guy that takes a lot of criticism, but for our money he tells it like it is better than anyone else that is readily accessible to everyday people.  Anyone who threatens the status quo is going to be the target of critics.

We suggest you read his work, listen to his message and ask yourself if it makes sense to you.  The key to your success will be your ability and willingness to research, think and act. Most people will keep dancing on the deck.  As for us, we’ll be in Scottsdale on April 30th listening to what Robert Kiyosaki, Mike Maloney and Richard Duncan have to say.

Wealth transfers are nothing new. And Robert Kiyosaki thinks a HUGE wealth transfer is imminent if not underway right now.  If you are concerned (and you should be), then we encourage you to attend this event also.

For us, it’s a business decision.  If we invest the time and money and go to the event, the worst thing that happens is that we spend 3 days hearing that these men have to say and thinking about the subject.  Even if we completely disagree, the 3 days of concentrated thought will help us make better decisions.  If we pick up just one of two great ideas that we can act upon, we should easily be able to make enough profit to cover the cost of the event. In either case, we’re likely to meet some interesting people – and who knows what opportunities will open up from that?  Our guess it will be more profitable than if we stay at home dancing in the deck.

Mike Maloney says this wealth transfer presents one of the GREATEST OPPORTUNITIES in history. We don’t want to to miss it!

We hope to see you in Scottsdale on April 30th.  Click here to join us.

Here’s a replay of our radio interview with Mike Maloney on November 18, 2009:

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3/14/10: Hedging Your Real Estate Bets with Life Insurance

Are you kidding?!?  Life insurance?  What does life insurance have to do with real estate - and how can it help a real estate investor succeed?  Good questions!  So we turned to one of the foremost experts on the creative uses of life insurance and learned how to add another powerful financial tool to our investor’s tool box. Check it out!

Backing the hearse up to the studio doors:
•    Chief Undertaker and Show Host, Robert Helms
•    Pallbearer for Hire and Co-Host, Russell Gray
•    Hearse Driver and “The Godfather of Real Estate”, Bob Helms
•    Non-traditional Financial Planner, Kim Butler

Let’s face it.  Most people would cross the street to avoid a life insurance salesman.  Who wants to spend a bunch of time talking about dying?  Worse, who wants to spend money on a product you hope you never use – and when you do, all the benefits go to someone else? Yuck!

That’s what we thought until we met Kim Butler.  Kim calls herself a “non-traditional” financial planner, which had us liking her right away.  If “traditional” means turning your money over to the Wall Street Wizards to play with, we’re not fans.  So we’re very interested in what Kim has to say.

Kim teaches what she calls “Prosperity Economics” and what it means to real estate investors.  Sitting here wallowing in the Great Recession, “Prosperity Economics” sounds pretty good!

The first thing Kim tells us is that life insurance “done right” means benefits to the LIVING! What a great concept!  She says rather than waiting to die to “enjoy” (we use the term loosely) the benefits of life insurance, she explains how life insurance is a powerful financial tool in the here and now. We like it.

One of our FAVORITE parts of the discussion is when Kim reveals how one particular type of life insurance has amazing similarities to real estate as a financial tool.  Even better, she tells us how savvy investors actually use life insurance not as an investment, but as a cash management tool.  Very interesting!

We came away with pages of notes – and are still hungry for more!  Look for a follow up show on this intriguing topic in the near future.

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In the Mood for Equity? – Part 2 of 2

Some people think we just sprinkle sunshine.  We think it’s more like singing in the rain.

Long time listeners know we were bullish on real estate from 2002 to 2005.  We still liked it going into 2006, but also started talking about hedging strategies.  We’d be lying to say we anticipated the mortgage meltdown and all of the resulting carnage to the economy and real estate values.  Even the really smart people we talked to, like Robert Kiyosaki and Walter Sanford, who’d started sounding the alarm in late 2005, couldn’t tell us why. They just knew the market would change. They had faith in the cycle (see Part 1).

Many consumers were attracted to real estate in the wake of the tech bubble.  Its strong history of stable appreciation, the fact it’s tangible and easy to understand, plus low interest rates, liberal loan programs and an international investment community eager to buy mortgage-backed securities (oh my, how things have changed!), all fed the fire.  Of course, standing here in 2010, we know the reality of cycles cannot be avoided – and in spite if its remarkable history, real estate was not immune.

The lesson?  Cycles are real and inevitable.  The good news is that cycles go both ways.  If the cycle down was inevitable, is it reasonable to think that a cycle up is also inevitable?  If the cycle down occurred with a reason that was only understood after it happened, then is it reasonable to think that the cycle up might also occur before we understand the reasons why?  If we wait until the reasons are obvious, the cycle may have passed the point of ideal opportunity.  Hmmm.  That’s a dilemma.

There’s no doubt it takes a certain amount of faith to invest.  This is certainly true if you’re seeking to optimize cycles.  By definition, you have to be willing to invest when most others aren’t.  That’s how you buy low.  Duh.  But should man invest by faith alone?  We don’t think so.

So in addition to faith in market cycles, there are some things to think about when investing in real estate.  And these things are fairly unique to real estate:

When properties produce enough income to pay a fully amortized mortgage, after allowing a reasonable amount for expenses and contingencies, then even if prices don’t increase over the long haul, you’ll build equity through amortization (the pay down of the loan with the tenant’s money).  What other investment can say that?

And even though you should never base an investment decision solely on the tax advantages (a revenue starved government can be fickle), investment real estate has a strong history of favorable tax treatment.  Few investments can claim this.  If you really pay attention and use strategies like cost-segregation and are careful to organize yourself (or your spouse) as a full time investor, the tax benefits of investment real estate can contribute substantially to your overall wealth building program. We could go on, but that’s not our main point.

Here’s where we think real estate gets exciting.  It doesn’t take much of a mood swing to affect real estate prices. That’s bad when the mood swings down as we’ve just seen.  But if you’re cash flowing as previously described, it’s not a train wreck.  You’ll get wealthy over time as the property gets paid off.  Even though it’s a much slower road, it keeps you safely in the game for the long haul.  Most people who got killed in this downturn (aside from losing their non-real estate sources of income), were carrying an unsustainable number of negative cash flow properties with no plan B.  We aren’t opposed to a little negative cash flow when a property has good upside, especially when you’re just getting started and prices are running away from you, but you need to be sure you can handle it if the market turns (as it did).  And just because it might make sense to buy one or two that way, don’t buy several unless you’re sure you can carry them if needed.

But when it comes to market appreciation (passive equity),  when consumer confidence begins to swing up, even small amounts of extra cash flow dedicated to real estate can have a dramatic affect on property values.  For example, when a buyer is willing pay an additional $300 per month on a 6% 30-year mortgage, the lender will provide an additional $50,000 in purchase loan.  That means that the buyer can afford to pay up to $50,000 more for the property even though they are only confident by $300 a month.  Of course, the property needs to appraise in order to justify the higher price to the lender.  This can be a challenge for the first properties sold in a market that is turning.  It’s another reason why real estate cycles more slowly.  You’d never have to wait for an appraisal to bid up the price of a stock.

But once the first property is sold, every comparable property in a 1 mile radius will have a better chance at appraising at the higher price – making it easier for each subsequent buyer to get the loans necessary to convert their $300 a month into $50,000 of equity for the seller.  If you didn’t get that, take a minute and think it through.

Once a few properties close at the higher price, IF there is the right supply and demand imbalance (big IF, but that’s what we look for when selecting areas to invest), the market will heat up, things will move faster and the up cycle will be in full swing.  If you wait for all that to happen before getting in, you’ll find it’s much harder to acquire properties that will cash flow.  Chasing trends is always dangerous – even in real estate.

Which brings us full cycle (pun intended).

If you believe in the resiliency of the American economy, the permanency of real estate in the lives of people, the probability of a growing population and the inevitability of real estate market cycles, then when do you want to be a buyer?  Real estate and loans are on sale today – at prices we haven’t seen in some time – and if the cycles are true, we may not see conditions like this again for awhile.  With as slow as real estate cycles are, it would be a shame to miss the next one.

We’re not telling you to buy.  We’re just saying don’t get lulled to sleep watching the glacier and then miss the opportunity.  Fortunately, with real estate, no matter what shape you’re in right now, you have time to expand your education and organize your resources to participate in the next cycle.  We encourage you to keep steadily advancing.

We’d love to hear what you think – and more importantly, what you’re doing.  If you’re stuck, let us know and we’ll work on a radio show or tutorial to help.  Just Ask the Guys or use the Feedback page.

Wayne Palmer added to Summit Faculty!!!

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

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

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

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

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

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