7/27/14: Principle Based Investing – Achieving Profit and Social Significance

The tax inversion debate has some saying that profits and corporate responsibility are on opposite ends of the spectrum.  But our guest for this edition of The Real Estate Guys™ radio show disagrees.

Sure, we all know people who take short cuts and try to take more out of every deal than they deserve.  Movies, TV and news documentaries like American Greed are loaded with stories of all the bad guys.  It’s enough to make you think all investors and entrepreneurs are selfish, short-sighted, people using pigs.

But our real world experience is quite different.  In fact, we’ve found most successful people we’ve met are generous, caring and socially responsible.  They’re also too busy minding their business to seek out attention for themselves.

Fortunately, we’re always out and about looking for interesting people to interview and for this episode we connected with someone we couldn’t wait to share with you.

On location in lovely Las Vegas, Nevada:

  • Your principled host, Robert Helms
  • His socially insignificant co-host, Russell Gray
  • Hotelier, social entrepreneur and philanthropist, Harris Rosen

They say what happens in Vegas stays in Vegas, but not when The Real Estate Guys™ are involved.  That’s because we always travel with our mobile microphones, and at this year’s Freedom Fest conference, we found ourselves in Sin City having an enlightening conversation with none other than Harris Rosen.

Harris Rosen is a very successful businessman and philanthrapistIf you don’t recognize the name, don’t feel badly.  Harris Rosen isn’t flamboyant or outspoken like a Donald Trump…and he’s not a household name like Marriott, Hilton or Disney.

But if you’ve ever stayed in non-branded hotel in Orlando, Florida, there’s a good chance you’ve been a guest of Harris Rosen.  In fact, Harris owns more hotel rooms in Orlando than ANY other company…except Disney.  And as you probably know, Disney has a pretty significant footprint in the Orlando market.

We find Harris Rosen interesting on many levels.

First, as a real estate investor (after all, a hotel is basically a beautiful apartment building that rents out on a nightly basis), Harris is extremely successful.  When you own thousands of doors, you’re doing well.

Did we mention that all those thousands of hotel rooms he owns are completely debt free?  That’s pretty good for a guy who started out with next to nothing and actually lived in one of his hotel rooms for over 16 years!

Which brings up another things we love about Harris…

He’s a case study in self-confidence, hard work, faith, diligence and resiliency.

Harris was actually fired by one of those household name hotel chains because, in their estimation, he had no future in the hotel business.  But not to be dissuaded, Harris scraped together $20,000 and purchased a run down hotel.

Now, he was the proud owner of two empty assets:  a hotel and a bank account.  But self-confidence isn’t a matter of bravado or swag.  It’s more about pushing forward believing that if there’s a way to make it, you’ll find it.

So rather than seeing obstacles and making excuses, Harris saw possibilities and got to work.  And somehow, some way, he managed to fill up his little hotel, eke out some profits, and build a culture and team that would become his hallmark.

Because Harris lived and worked with his employees for so many years, he doesn’t look at employees as assets.  He looks at them as family.

And as the patriarch of any family would, Harris keeps the best interest of his “family” at the top of his priority list.  So while some CEO’s may be tempted to simply cut important benefits to grow or protect margins, Harris wouldn’t accept the easy way out.

Instead, he focused his entrepreneurial genius on finding ways to deliver essential benefits more cost effectively.  And no surprise, he succeeded.

A case in point is employee health care.

You may have heard there’s been a lot of change in the way healthcare is structured in the United States.  The hope was that changing the structure would drive down costs, increase services, and expand the number of people being served.

And while the jury is still out on whether or not these government driven changes will eventually deliver on the hope promised to millions, Harris Rosen is already doing it for the thousands of “family” members working in his organization.

It all started with investing based on powerful personal principles while honoring the responsibility to deliver a consistently strong bottom line.  After all, if the organization can’t remain solvent, no amount of hard work or good intentions will help anyone.  Simply spending money isn’t a sustainable solution.

The essential component to social significance is persistent profitability.  Because without money from somewhere, nothing can get done and no one can be served.

And just you don’t think Harris is a one-trick pony, wait until you hear about The Tangelo Park Program.  Here, Harris essentially adopted a down-trodded neighborhood in Florida and began investing in the people.

He started with day care so parents could work.  He provided scholarship program for kids to attend college.  Before long crime rates had plummeted, property values had sky rocketed, and his investment was paying huge social dividends.

Harris Rosen seems to have cracked the code.  So listen in and consider how principle based investing can help you achieve profits and social significance as you build up your own real estate empire.

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The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training and resources that help real estate investors succeed.

7/20/14: Proof of Concept – You CAN Raise Money for Your Deals

Donald Trump says if you're going to be thinking, you might as well think BIGDonald Trump says, “If you’re going to be thinking anything, you might as well think big.”

Henry Ford said, “If you think you can do a thing or you think you can’t do a thing, you’re right.”Herny Ford said

And until Roger Bannister became the first person in recorded history to run a mile in less than 4 minutes, people thought it was physically impossible.  He changed the way people thought about their limits…at least when it came to running a mile.

So what’s keeping YOU from taking your real estate investing to the next level?  Surely it isn’t a lack of money.

After all, in case you hadn’t noticed, there’s a LOT of money floating around.  Central banks have added TRILLIONS to the global economy.  Has any of it found its way to you yet?

We’ve been tooting the horn of real estate syndication…raising private money to do deals…for the last few years.

Sure the financial crisis was painful.  We were having a ton of fun with loose lending guidelines.  Then one day someone took away THAT punch bowl and it looked like the party was over.

But it wasn’t.  It just moved.

Instead of using debt (borrowing), the new game became equity…as in “private” equity.

Wall Street figured it out.  How long before the same guys who were putting together mortgage (debt) backed securities were out raising equity to buy houses?  They were still after the same thing: streams of cash flow from housing occupants.  Except now, they needed tenants and not homeowners.

But did YOU turn the corner?  Or have you been waiting for lending to come back?

The good news is that lending IS coming back.  So if you’ve been waiting for lenders to lend again, you’re back in business.

The bad news is that you missed some of the best deals in modern real estate history.

But that’s okay.  The party is FAR from over.  There are still a LOT of deals out there.  And while lending is coming back, it’s not back like it was…yet.  When it comes back, all that debt will be added to all the cash already out there and it will create a whole new wave of price appreciation. THAT will be another fun ride for real estate investors.

But…you have to have properties to get in on the action.  After all, how much money can you make on property you don’t own?

So again…what’s holding YOU back?

In this episode of The Real Estate Guys™ radio show, we sit down to debrief a couple of regular guys who went to a seminar on how to raise money to do deals.  Sounds fun.

What’s interesting is they actually took what they learned and implemented it.  What a concept!  And they’ve since gone on to independently raise millions of dollars between them.  In less then a year.

So instead of the two radio guys yammering on about why and how to do syndication, we thought you’d enjoy listening to a couple of Roger Bannisters.Roger Bannister was the first human to run a mile in less than 4 minutes...something that world class runners do regularly today.

Maybe they haven’t shattered as powerful a paradigm as the “impossibility” of a 4 minute mile.

But if the little voice in your head is telling you that you don’t have enough money to get to the next level in real estate investing, go grab a broom and dustpan.  You’re about to have your paradigm shattered.

Raising expectations and belief behind The Real Estate Guys™ shiny mobile microphones:

  • Your long lasting host, Robert Helms
  • His 4 minute co-host, Russell Gray
  • Real estate entrepreneur, investor, sydnciator and one of the rare happy “E”s, E.J. Bodnar
  • Real estate entrepreneur, investor, and now full time syndicator, Danny Kalenov

E.J. Bodnar has got to be one of the nicest guys on the planet.  Even his voice is pleasant and soothing.

So no surprise when asked what his secret of success is, E.J. talks about serving other people, sharing great opportunities with them, and not trying to force a fit.  In other words, it’s all about the other guy.

Investors are the key to doing bigger deals fasterThis is a GREAT piece of advice.

Many first time syndicators hate selling.  They think of selling as taking from someone else…tricking the other party into doing something they don’t want to do…making the whole experience a distastefully selfish undertaking.

And of course, nice people don’t want to be that way.  So they either won’t syndicate or they fail at it because they can’t bring themselves to sell.

E.J. has (shocker) a completely different paradigm.  And because he focuses on others, he eagerly shares his opportunities with people and they can tell he’s sincere.  He doesn’t ask anyone to do anything they don’t want to do.  It’s a very simple, yet highly effective approach.

And E.J. says that once you get the first syndication under your belt, the next one is much easier.  Why?  Proof of concept.  Are you detecting a theme?

Next up is Danny Kalenov.

Danny and E.J know each other (they’re both part of a syndication club), but they don’t work or invest together.

Danny cut his teeth in real estate investing in a very unique niche:  vacation rentals.

He discovered that the amount of income you can get from a property for short term rental (days and weeks, versus months or years) can be SUBSTANTIALLY higher.  You just have to have the right property and be prepared for the customer service component.

Since then, Danny has gone on to do a variety of different types of deals.  He works with different partners and is active in multiple markets.

Danny soon discovered that many of his friends and co-workers were watching him.  And they could see he was doing well with real estate.

Before long, they started asking to get in on the action and Danny realized he had an on opportunity.  He could grow his business by including others in his success.  But he wanted to make sure he was ready to do a good job for people.  So he started looking for ideas, information and training.

Syndication is one of fastest ways to go full time in real estate investingWhat’s exciting about Danny is that it was just one year from the time he went to his first syndication training until he had funded his first deals and quit his corporate job.

Of course, along the way he learned some great lessons.  And he’s still learning every day.

One of the big takeaways from talking to Danny is that there’s a time to learn and prepare, and a time to get out in the real world and get going.  It starts with a mindset of professionalism, a rearrangement of commitments and priorities (time budgeting) and a unique combination of confidence and humility.

So if you’re read this far, we’re guessing you’re pretty motivated.  They next step is to tune in and here what Danny and E.J. have to share.

Who knows?  Maybe some day YOU will be sharing your secrets of success on The Real Estate Guys™ radio show!

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The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training and resources that help real estate investors succeed.

7/13/14: The Future of Money – Currency, Metals and Crypto-Currency

Money is such an interesting topic.  It really is the lifeblood of human society.  It’s the repository of human production and the means by which value is exchanged.  Money does in fact make the world go ’round.

Money makes the world go 'round.For real estate investors, and really any other investor, business owner or laborer, productivity, cash flows and net worth are all denominated in some form of money.

Of course, over history and around the world, money takes different forms.  And depending on when and where you’re from, you look at money through a specific paradigm.

For 70 years, the U.S. dollar has been the world’s reserve currency.  As such, the dollar has become the universally accepted unit of value through which virtually everyone around the world engages in commerce.

You may be able to do business at the street level with local currency, but when big corporations or governments do business, it almost always goes through U.S. banks and U.S. dollars.  And it’s been a powerful source of U.S. hegemony (influence over other countries) for decades.

But many people believe the dollar’s reign as the dominate currency may be coming to an end.  Even if it doesn’t, technology, global power shifts, and modern monetary theory are all affecting the dollar’s value and utility.

And because the production and accumulation of money is the main purpose behind most real estate investors daily activities, we thought it would be a good idea to talk about the future of money.

Enriching the conversation about currency, coins and crypto-currency:

  • Your on-the-money host, Robert Helms
  • His-cryptic co-host, Russell Gray
  • Billionaire businessman, political pundit and best selling author, Steve Forbes
  • Currency fund manager, Axel Merk
  • Precious metals expert and entrepreneur, Anthem Blanchard

When you have billions of dollars, we’re guessing you pay close attention to their value.  So when billionaire Steve Forbes puts out a book called Money – How the Destruction of the Dollar Threatens the Global Economy and What We Can Do About It, we’re interested in hearing what he has to say.

Steve Forbes is the author of Money - How the Destruction of the Dollars Threatens the Global Economy and What We Can Do About ItFortunately, Steve was kind enough to sit down with us to talk about it, so we turned on the microphones so you could listen in.

The short of it is that an unstable dollar means an unstable economy.  The analogy Steve uses is time.

Consider what your calendar planning would look like if each day you woke up, the number of seconds in each minute was being changed.  Some days there are 60 seconds in a minute.  Other days, there are 75 seconds.  Sometimes there are only 45 seconds.

When you start calculating the value of hours, days, weeks and months using these floating value minutes, you can imagine how confusing and chaotic your schedule would be.

You’d probably miss more than a few appointments because you’d invariably end up in the wrong place at the wrong time.

It’s not hard to see that when the dollar’s value is constantly shifting, investors and businesspeople invariably end up with money in the wrong place at the wrong time.

Austrian school economists call this a misallocation of capital or a malinvestment.  Later, when adjustments are being made to realign monetary values with real values, this misplaced capital is revealed.  And it’s usually a painful “correction”.  Can you say 1929, 1987 or 2008?

Sadly, lots of people are wiped out when these events occur.  Then politicians get angry and slap more regulations on business and investing.  And central banks print more money to paper over the losses and reduce the pain. Everyone feels good for a moment because they feel like something is being done.

But history tells us it doesn’t work.  In fact, history says it makes it worse.

Why?

Because the REAL problem was never addressed.  The real problem is unsound money.  Unsound money is inherently unstable, and leaves investors and businesspeople guessing about values and risk.  A case in point is the 2008 real estate crash.

The post mortem on the 2008 crash reveals that the gobs of cheap money created to paper over the dual whammy of the tech bust and 9/11 attacks ended up fueling a bond bubble that blew up.

It’s a big topic, but worthy of short review.  After all, what’s the point of riding this next wave of rising real estate prices only to get slapped down hard in a few year because you weren’t paying attention?

So all the cheap money pumped into the system in 2001 needed a home and Wall Street began creating investments.  They started by packaging up loans (mortgage backed securities) and selling them as assets to investors.  It satisfied some demand, but it wasn’t enough.

So Wall Street needed to make more loans and started lending to people who really couldn’t afford to pay back.

Sub-prime mortgage backed securities were like ticking time bombs inside the financial systemBut because it was a pump and dump operation, Wall Street buried the sub-prime loans inside big pools, then sliced the pools up and sold them off in pieces so no one could really see what was inside.

It was like pulling the pin on a hand grenade.  You know it’s going to be ugly, but you know you can toss it to the next guy before it blows up.

These mortgage backed securities (MBS) sold like hot cakes.  Remember, there was all kinds of cheap money in the market and it needed a home.  But when there weren’t enough real borrowers, qualified or not, Wall Street needed to create more investments to sell anyway…so they came up with derivatives.

Think of derivatives like clones of the original.

Derivatives look real, but there’s no actual borrower or property.  The “investment” is just a contract that says this piece of paper will be worth the same as the original piece of paper (the one with the real borrower and property attached).   This concept of creating “assets” out of nothing is a common theme in modern day finance…right down to the greenback in your wallet…

And as long as everyone believes the clone is just as good the original, AND the original borrower pays so the original paper performs, no one knows that it’s all just a big fraud.  Really, it’s no different than a common Ponzi scheme.  It all seems okay until you run out of suckers.

Of course, we all know what happened.  Joe Sub-Prime couldn’t handle the interest rate increase two years into the loan.  By then the originator of the bad loans had long since sold them and moved on.  And when Joe Sub-Prime defaulted, the original paper and ALL the derivatives indexed to it went bad.  In other words, the whole house of cards collapsed.  It was a financial train wreck of epic proportions.

It all happened because of unsound money.

Central banks, especially the Federal Reserve, can conjur money out of thin air.  But all that printing comes at a very steep price.You see, unsound money can be conjured out of this air.  It’s like having a credit card with no limit.  There isn’t anything to stop a constant expansion of money…at any pace.

And just like 2002-2007, it’s all great…right until it isn’t.

Sound money on the other hand, CANNOT be conjured out of thin air.  It must be backed by something real, which is limited in supply.  Which means that the price of it (interest rates) reacts to supply and demand.

And when too much money is being used, it gets more expensive.  This regulates how quickly money can be metered into the economy.

Obviously, it’s a big topic.

Steve Forbes is calling for a gold-backed dollar.  At least partially.  His point is that the dollar needs to be stabilized or the world is not going to continue to use it as the reserve currency.

THAT would be a BIG PROBLEM for U.S. dollar holders.  And it’s something we’re paying VERY close attention to.

Which bring us to Axel Merk

Axel Merk is intereviewed at Freedom Fest by The Real Estate Guys host Robert HelmsAxel is an expert on currencies.  He manages funds which trade in currencies.  This means he pays attention to the relative strength of things like dollars, yen, euro, yuan, etc.

He also pays attention to gold…something that we’ve been following closely for quite some time.

If and until Steve Forbes gets his way or someone creates a gold-backed currency, all currencies worldwide are essentially fiat.

Fiat currencies have value because the issuing government say they do.  These are called legal tender laws.

This means that a piece of paper (or digits on your bank statement) can be used to pay taxes and any public or private debts.  As long as you can settle these items with otherwise worthless pieces of paper, the paper has value in society.

Side bar (as though this blog isn’t already along enough)…

Think about this for a moment:  When a currency is stable (or has the widely accepted illusion of stability) then all sellers and workers in a given economy will probably accept it.  At the very least it can be used to pay their debt and taxes.

When a currency’s value begins to fall, initially seller’s and workers will continue to take it, but they quickly seek to spend it on something real like food, clothing, furniture, equipment…anything tangible that has inherent utility.  They only keep enough currency on hand to pay taxes and debt.  Go look at the historical record of any of the many currency collapses from the Weimar Republic to Zimbabwe and Argentina.  It’s a movie with a very predictable script.

But if legal tender laws require that this now abundant, albeit practically worthless, currency must be accepted for payment of taxes and debt, wouldn’t it be wise in the face of a falling currency to defer taxes as long as possible and borrow as much as possible to buy tangible items today?

Then later, when the currency is abundant, you can offer the taxman and creditor your piles of paper and they are compelled by law to accept them…even though they aren’t worth much at all in terms of purchasing power.

In effect, debt today (like long term fixed rate mortgages on real estate) is a very powerful way to effectively short a falling dollar.  It’s certainly something to think about if the dollar continues its steady decline.

So as you can see, and as we previously discussed and Steve Forbes contends, that unsound money, no matter who issues it, it problematic for investors and businesspeople.  It makes every financial transaction, especially those of long duration (like real estate or starting a business) a much more complicated process.

Axel and his firm spend time watching the rate at which each currency is declining as compared to another, and then they trade currencies in an attempt to be in the right side of move.

James Rickards' Currency Wars details how goverments are engaged in a destructive competition of currency devaluationIn his best-selling book, Currency Wars, James Rickards talks about a race to the bottom.  This is where all currency issues are expanding currency supplies (causing their values to drop) in an attempt to make other currencies stronger by comparison.

This means the stronger currency can buy more exports from the lower currency.  And since everyone wants to increase their exports, they cheapen their money.  Yes, it’s twisted, but that’s the way of the world right now.

Think of it this way.  If two currencies are falling, but one is falling fasten than the other, then the one that is falling slower, is “stronger”.

For example, if a dollar falls 10% and the Euro falls 20%, the dollar actually increased relative to the Euro.

$1.00 less 10% is 90 cents.

€1.00 less 20% is 80 cents.

90 cents is worth 10 cents more than 80 cents.  And 10 cents is 12.5 percent of 80 cents.  So the 90 cent “dollar” (which started out as 100 cents) is worth 12.5% more than the Euro.  That is, the dollar rose against the Euro.

But is the dollar really stronger?

Confused?  That’s Steve Forbes’ point and why guys like Axel Merk manage currency portfolios for their clients.

So what does ANY of this have to do with real estate?

Well, it’s no secret that the Fed has been trashing the dollar for quite a while and especially the last 5 years.

This has made other currencies relatively stronger, so foreigners have been buying up dollar denominated assets…like real estate.  In fact, in some markets foreign buyers are coming in for cash and buying up to 30% or more of all available properties.

If you’re in one of those markets, then these people are bidding up prices, gobbling up inventory and, in the case of single family homes, pricing out U.S. home buyers.  That’s one of the reason why home prices rise even though the U.S. job market and wages remain weak.

So yes, all this matters to you.

Of course, even though he believes in capitalism and free markets, Steve Forbes is advocating for a political solution.  He wants the policy to be that the dollar is backed by gold…at least partially.  His argument is that a sound dollar will unleash business and investment by bringing stability to the entire process.

Sounds good.  But what do we do until then?

Enter Anthem Blanchard.  Like Steve Forbes, Anthem is a returning guest to The Real Estate Guys™ radio show.  He runs Anthem Vault which is a technology driven physical gold (and other precious metals) dealer and storage facility.  And Anthem just came out with something which we find VERY interesting.

Perhaps you’ve heard of Bitcoin, which is arguably the biggest and best known of the crypto-currencies…

Bitcoin is a currency which is created through complex computer computationsBitcoin is interesting on a couple of levels.

First, the very fact that the market has embraced Bitcoin is a sign of falling confidence in the dollar.

After all, with today’s technology, electronic payments have been ubiquitous for years.  So Bitcoin didn’t catch on because it was easier than writing a check or handing over pieces of paper.

The market is apparently eager to find some alternative to the dollar.

Second, Bitcoin, like every other crypto-currency up until now, isn’t backed by anything.  The coins are “mined” when computers produce this long strands of code on the back-end of an arduous computing process.

The idea is that even though they aren’t backed by anything tangible, Bitcoins can’t simply be fabricated with a few computer entries like dollars can (as former Fed Chair Ben Bernanke so famously boasted on national television).

So Bitcoins are allegedly limited in supply.  Therefore as demand grows, the price rices.

We’re not here to slam Bitcoins, though we certainly aren’t fans of any kind of currency that isn’t backed by something real.

Our point is that the market place clearly wants an alternative to the dollar that is convenient to use and removed from the political pressures to crash its value.

Steve Forbes says a gold-backed dollar is the answer.

Others say crypto-currency like Bitcoin is the answer.

But what if you could combine the two?  How about a gold backed crypto-currency?

Now THAT is an interesting concept.

And that’s exactly what Anthem Vault has created.  Maybe it’s just us, but we think it’s going to be a big deal.

All this to say (and thanks for reading this far), that the future of money is changing and it’s something every real estate investor should be paying attention to.

So listen in as Steve Forbes, Axel Merk and Anthem Blanchard share their perspectives on the future of money, metals and crypto-currency.

Listen now:

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The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training and resources that help real estate investors succeed.

7/6/14: From the Archives – Creating Partnerships…Finding and Becoming the Right Partner

They are a lot of options to choose from when it comes to making money with real estate investingSometimes when you go to a buffet, you try a little of a lot of different things….then you go back and LOAD UP on what you REALLY like.

In case you haven’t noticed, we’re really enamored of partnerships.  In our business and investing lives, we do almost everything through partnerships.  We just think it’s one of the fastest, most fun and effective ways to get things done.

So while we were busy at Freedom Fest 2014 (which was awesome as usual…watch for some great interviews coming soon!)…we decided to dig into the archives and re-release one of our most popular episodes from earlier this year.

You can see the original broadcast blog here.  It’s got some great commentary about the timeless principles of putting together powerful partnerships.  So even if you read it before, it’s probably worth a review.  And if you’ve never read it, then be sure to check it out.

But since we have your attention, here are some timely thoughts on why NOW is the time to get moving on putting together partnerships to accelerate your investing.Now is the time to take your real estate investing to the next level with partnerships

Not So Tiny Bubbles

The stock market is raging.  Real estate is on the rise.  Bonds are remarkably solid (that’s why interest rates are low).   Food and energy are climbing.  Oil, in spite of reduced demand and increasing supply, is holding steady.  Even gold is eking out a slow comeback.  In other words, measured in dollars, things are looking up.

That’s what happens when trillions of dollars are created to save banks from their derivatives folly.

There are a lot of different directions we could go with this (and boy, are we tempted), but the main point is that the Fed’s efforts to bolster balance sheets at any expense is working.  At least for investors…for the time being.  It’s still not stimulating growth in jobs, wages, consumer debt and spending, or business investment.  But Wall Street is LOVIN’ it!

There's a lot of money looking for a home right nowCombine this with the BIG wave of baby boomers crossing over into retirement, and there’s a LOT of investment capital looking for a home.

And it may sound crazy, but banks don’t want the money because it creates a high maintenance liability for them.  Besides, they can get all the money they need from the Fed at no interest.

So until borrowers show up in droves (loans are ASSETS to the bank) to offset the deposits (which are liabilities to the bank), banks aren’t chasing depositors.  When’s the last time you were offered a free toaster to open an account?  They want you to BORROW, not deposit.

Besides, banks aren’t paying any interest.  Bond yields are anemic.  That is, investors put up a lot of principal for very little yield.  Investors are STARVING for yield.

So investors are turning to stocks in spite of the obvious bubble.  Dividend paying stocks are probably the best play, but when stocks are so high, it’s hard to find good yields without taking too much principal risk.

YOU are the Solution

Real estate has healed from the black eye it got in 2008.  But even so, there are still great markets where nice properties can be acquired for less than replacement costs.  A real estate bubble may be coming, but it’s not here yet.

Mortgage rates are low.  Tenant population is strong and growing.  That means you can grab the assets at discount prices, lock in cheap long term financing (short the dollar), and service that debt with the rents from a growing population of renters.

But paper investors have no idea how to do real estate.  It’s messy, scary and mysterious.

YOU can offer investors your knowledge, connections, time and hustle.  They put up all or most of the money.  You find the deals, manage the details, and make it all happen.  Investors NEED you MORE than you need them.

Context vs Content

Robert Kiyosaki talks about this a lot, and it’s really important if you’re trying to figure out how to go from solo operator to investment company CEO.

Most solo operators focus almost exclusively on content.  They know, or think they need to know, how to do everything from plumbing to property management.  They work 24/7, have white-knuckle grip control on every detail, and can’t help anyone but themselves.

For the solo operator, there’s no light at the end of the tunnel, except to sell it all, buy bonds or carry back their equity, and retire.  Then they become part of the army of investors starving for yield.

To go big, the emphasis needs to be more on context.  What needs to be done and why, and not so much on how.  “How” is important, but better left to your team of technical advisors, vendors and staff.

It takes a different skill set to operate an investment company.  Many solo operators struggle to make the transition.  It’s done by changing the paradigm, then focusing on building the team.

The Great News…

It’s worth it.  By involving other people, you can do more faster.  You create jobs for team members and vendors.  You create better profits for more investors.  Most of all, you serve the communities you’re operating in by providing real estate for people to live, work or play in.

The World Needs YouBe a hero and save investors from low yield, high risk investments

There are people who don’t produce enough and have to rely, all or in part, on others for their needs.

The majority of people only produce enough to take care of themselves.  There’s nothing wrong with that, except that the world needs more.

A few exceptional people find ways to create abundance.  They build companies and portfolios that serve lots of people.  Obviously, the world needs more of these people.  And one of the fastest ways to become one is to learn how to put together partnerships to do more faster.

If you’re already one of those people, thank you!

If you’re not, then we hope you choose to take the steps necessary to become one.

It starts with learning how to put together partnerships, which is the theme of this re-released episode of The Real Estate Guys™ radio show.

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The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training and resources that help real estate investors succeed.