Mastering Market Trends to Find Late-Cycle Opportunities

They say the best deals go first … so it is too late in the cycle to find great real estate investment opportunities?

We say the answer is no. 

We’re visiting with a multi-market investor who is finding plenty of deals … even this deep into the economic cycle. 

Join us as we push past talk of bubbles and compressed cap rates to uncover deals still up for steals!

In this episode of The Real Estate Guys™ show, hear from:

  • Your dealing host, Robert Helms
  • His reeling co-host, Russell Gray 
  • President of ROI Turn Key Properties, Jared Garfield

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The complex market ecosystem

It’s not just important what you invest in … but where. 

Markets are different across the world. So, today we’re going to focus on studying market trends to find excellent real estate investments. 

There is a lot of talk about “the market cycle.” But you see, there’s not just one market cycle. And some market cycles run concurrently. Others lag … and some are completely opposite of others. 

The key is to make decisions on where to invest depending on where you think the puck is going. 

Remember that markets are more than just geography. They also take in demographics. 

Economic cycles affect markets too … and they are affected by the business cycle … the ebb and flow of supply and demand. 

It’s an extremely complex ecosystem. 

Because real estate moves slowly, you don’t day trade. You look out at the horizon and think about the long game. 

There’s also a lot you can learn from other people’s experiences. There are plenty of resources from people who have been through a market downturn or downward cycle before. 

Just don’t forget that in real estate, there is no one great, perfect real estate market. 

The trick is to match a market with your personal investment philosophy … who you are as an investor, what you’re trying to accomplish, your goals and dreams. 

Focusing on a handful of markets can make a lot of sense in the long term. 

Our guest is in a lot of markets and does a lot of thinking and research about this very topic … and he is here to talk about some of the markets he likes for investors today. 

Identifying and adapting to markets

Jared Garfield used to go to his grandfather’s real estate office, drink soda, and talk real estate. 

“From the time when I was a kid, I wanted to be in real estate and follow in the family business,” Jared says. 

But Jared learned from his family’s successes and failures … and what he learned was the power of diversification. 

Jared started buying houses in college. He bought foreclosures and flipped them for modest profits. After graduation, he built up a pretty large real estate portfolio. 

But Jared recognized that markets change. A market that is more cash flow oriented becomes more of an appreciation market over time. Dallas, Texas, is the perfect example. 

So, Jared spends a lot of his time watching that evolution and … to the best degree possible … anticipating it. 

“I developed a spreadsheet that analyzes 278 metropolitan statistical areas across the entire country on about 80 different metrics,” Jared says. 

Jared incorporated everything from poverty level to crime to test scores to media to affordability … and he looked at appreciation, building permits, job growth, population and more. 

“With that, we’ve identified some markets where you can really outperform many of the other markets,” Jared says. 

Jared also says it is important to think about submarkets. Investors tend to be the first in when there is an opportunity and the first to leave. 

So, Jared likes to look at secondary and tertiary markets. Take Huntsville, Alabama, for example. 

Huntsville is known as the Pentagon of the South. It’s home to NASA, Boeing, Lockheed, and Raytheon, and the FBI just moved 4,500 jobs from Langley to Huntsville. 

Jared bought foreclosed houses in C or C+ neighborhoods for $28,000 to $35,000. They put in an average of $30,000 into rehab. Five years later, those homes are selling for about $120,000. 

The cash flow is really good. 

But, Jared says, you have to deploy different strategies at different phases of the cycle

Now that Huntsville is no longer an absorption project … it’s expansion, full tilt … there is no reason to buy turnkey in C class neighborhoods. Instead, it makes more sense to buy new construction. 

“A market gives you what the market gives you, and you have to decide how to take that and turn it into something that makes sense,” Jared says. 

Selecting the right market for you

There’s a lot to learn about selecting and profiting in high cash flow markets … that’s why Jared has prepared a special report for our listeners. 

In this report, Jared shares how to choose markets … the metrics you should use and how to understand the difference between high cash flow markets and others. 

Jared also shares what things you should watch for in each of his top market picks. 

One of those big factors is the one-horse town. 

A one-horse town doesn’t mean small. It could also mean a big town with a very segmented workforce. 

Seattle took a bath when Boeing laid-off workers in 1990. Houston had it rough because it used to be pretty much just oil. You’ve got to have a diversity of employment and industries. 

“I like to invest in towns that are at least 300,000 in population and have a variety of employment sectors,” Jared says. 

With single-family investing, all the data is there for you to pick the right market and get high returns … you just have to know how to look. 

For more tips and experiences from Jared, listen in to the full episode!

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Podcast: Mastering Market Trends to Find Late-Cycle Opportunities

Is it too late in the cycle to find great real estate investment opportunities?

With all the talk of bubbles and compressed cap rates, we visit with a multi-market investor who’s finding plenty of deals … even this deep into the cycle.

Listen in and learn what to look for and how to know if a market still has room to run.


More From The Real Estate Guys™…

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


Love the show?  Tell the world!  When you promote the show, you help us attract more great guests for your listening pleasure!

Now the Fed’s up to $400 billion …

Last week the Fed pumped over $200 billion of freshly printed cash into the repo market.

Since then, the Fed’s upped the ante to $400 billion … and counting.

For those young or asleep during the 2008 financial crisis …

… back then, the Fed provided an infusion of $85 billion per month to keep the wheels on the financial system bus.

Today, they’re pumping in nearly that much PER DAY.

That’s MIND-BOGGLING.

They’re trying to keep interest rates DOWN to their target. Of course, interest rates matter to real estate investors. We typically like them low.

But this isn’t about real estate. It’s more about banks who hold debt (both mortgages and bonds) on their balance sheets.

As we explained last time, when interest rates rise, bond values fall

… and a leveraged financial system with bonds as collateral is EXTREMELY vulnerable to collapse if values drop and margin calls trigger panic selling.

The Fed seems willing to print as many dollars as necessary to stop it.

And that brings us to an important question …

If the Fed can simply conjure $400 billion out of thin air in just a week … is it really money?

This matters to everyone working and investing to make or save money.

For help, we draw on lessons learned from our good friend and multi-time Investor Summit at Sea™ faculty member, G. Edward Griffin.

Ed’s best known as the author of The Creature from Jekyll Island. If you haven’t read it yet, you probably should. It’s a controversial, but important exposé on the Fed.

In his presentation in Future of Money and Wealth, Ed does a masterful job explaining what money is … and isn’t.

In short, money is a store of energy.

Think about it …

When you work … or hire or rent to people who do … the energy expended produces value in the form of a product or service someone is willing to trade for.

When you trade product for product, it’s called barter. But it’s hard to wander around town with your cow in tow looking to trade for a pair of shoes.

So money acts as both a store of value and a medium of exchange.

The value of the energy expended to create the product is now denominated in money which the worker, business owner, or investor can trade for the fruits of other people’s labor.

This exchange of value is economic activity.

Money in motion is called currency. It’s a medium of transporting energy. Just like electricity.

When each person in the circuit receives money, they expect it has retained its (purchasing) power or value.

When it doesn’t, people stop trusting it, and the circuit breaks. Like any power outage, everything stops.

So … economic activity is based on the expenditure and flow of energy.

This is MUCH more so in the modern age … where machines are essential to the production and distribution of both goods and information.

Energy is a BIG deal.

This is something our very smart friend, Chris Martenson of Peak Prosperity, is continually reminding us of.

Here’s where all this comes together for real estate investing …

New dollars conjured out of thin air can dilute the value of all previously existing dollars.

It’s like having 100% real fruit juice flowing through a drink dispenser.

If someone pours in a bunch of water that didn’t go through the energy consuming biological process of becoming real fruit juice in a plant…

… the water is just a calorie free (i.e., no value) fluid which DILUTES the real fruit juice in the dispenser.

Monetary dilution is called inflation.

Legendary economist John Maynard Keynes describes it this way

“By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens.”

Inflation waters down real wealth.

Fortunately, real estate is arguably the BEST vehicle for Main Street investors to both hedge and profit from inflation.

That’s because leverage (the mortgage) let’s you magnify inflation’s effect so your cash-on-cash ROI and equity growth can outpace inflation.

Plus, with the right real estate leverage, there’s no margin call. Meanwhile, the rental income services the debt.

Even better, the income is relatively stable … rooted in the tenant’s wages and lease terms. Those aren’t day-traded, so they don’t fluctuate like paper asset prices.

Effectively, you harness the energy of the tenant’s labor to create resilient wealth for yourself. And you’re doing it in a fair exchange of value.

Of course, the rental income is only as viable as the tenant’s income.

This brings us back to energy …

Robert Kiyosaki and Ken McElroy taught us the value of investing in energy … and markets where energy is a major industry.

First, energy jobs are linked to where the energy is. You might move a factory to China, but not an oil field. This means local employment for your tenants.

Your tenants might not work directly in the energy business, but rather for those secondary and tertiary industries which support it. But the money comes from the production of energy.

Further, energy consumers are all over the world, making the flow of money into the local job market much more stable than less diverse regional businesses.

It’s the same reason we like agriculture.

While machines consume oil, people consume food. Both are sources of essential energy used to create products and provide services.

So when it comes to real estate, energy, and food … the basis of the investment is something real and essential with a permanent demand.

Though less sexy and speculative, we’re guessing the need for energy and food is more enduring than interactive exercise cycling.

Real estate, energy and agricultural products, are all real … no matter what currency you denominate them in.

And the closer you get to real value, the more resilient your wealth is if paper fails.

Right now, paper is showing signs of weakness. But like a dying star, sometimes there’s a bright burst just before implosion.

Remember, Venezuela’s stock market sky-rocketed just before the Bolivar collapsed.

Those who had real assets prospered. Those who didn’t … didn’t.

Are we saying stocks and the dollar are about to implode? Not at all. But they could. Perhaps slowly at first, and then suddenly.

If they do and you’re not prepared … it’s bad. It you’re prepared and they don’t … not so sad. If they do and you’re prepared … it could be GREAT.

Real assets, such as well-structured and located income property …

… or commodities like oil, gold, and agricultural products (and the real estate which produces them) …

… are all likely to fare better in an economic shock than paper derivatives whose primary function is as trading chip in the Wall Street casinos.

So consider what money is and isn’t … the role of energy in economic activity … and how you can build a resilient portfolio based on a foundation of real assets.

“The time to repair the roof is when the sun is shining.”
John F. Kennedy

Until next time … good investing!


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Cashing in on the silver BOOM …

In case you missed it, silver exploded nearly five percent higher … in a single day … which takes its impressive year-to-date gain to nearly twenty percent.

Of course, we’re not into using precious metals as trading vehicles to churn out short-term dollar-denominated capital gains.

We think real investing is about acquiring streams of passive cash flow. Rental income is sustainable, resilient wealth that doesn’t gyrate up and down with every Presidential tweet or bloviation by a Federal Reserve governor.

Nonetheless, we do think silver and gold can serve a powerful purpose in a strategic real estate investor’s portfolio. In fact, we’ll probably make this our presentation topic at the upcoming New Orleans Investment Conference.

But there’s another big silver boom happening … and it’s one that’s attracting gobs of capital and produces very strong cash flows.

A recent research report from Jones Lang Lasalle (JLL) described healthcare as an undeniable force in the U.S. economy and “the largest employer in the U.S.”

JLL says the healthcare’s bright outlook is rooted in powerful demographics…

“Underlying the forecast for growth in healthcare spending are … the growing and aging U.S. population.”

It’s the “silver tsunami” our friend and residential assisted living investing expert, Gene Guarino, talks about all the time.

And by the numbers, it’s a sector likely to be growing for awhile

“… the American population over 65 years of age is projected to almost double, from 50 million to nearly 95 million …”

“… the 95 and older population is expected to nearly triple, from 6.5 million to 19 million.”

Maybe that’s old news. (Sorry, was that a pun?)

But the point is … those demographics drive big expenditures

“Healthcare spending is expected to grow by more than nearly $2 trillion in the next decade.”

Of course, just because big money is flowing into a mega-sector, you still need to figure out how to stake your claim and get into the cash flow.

On this count, the report contains some valuable insights …

“Healthcare delivery continues to evolve toward a more decentralized model away from inpatient care and hospitals.”

Why? Because that’s what the customer WANTS …

“Healthcare consumers increasingly expect … a better experience when seeking care.”

“This trend is leading to new real estate strategies that include moving to … smaller-scale … centers.”

Of course, they’re not talking about residential assisted living homes. At least not yet.

But McMansions converted into a cash-flowing group home provides both care and community to a growing demographic … and fit well into the micro-trend.

We’re guessing big players like JLL and their institutional clients just aren’t interested in owning a dozen single-family homes each cranking out $10,000 a month of net spendable cash.

That’s because as great as this sounds to Mom and Pop investors and syndicators on Main Street, it’s small potatoes to big institutional players.

Yet we think it’s probable somewhere down the line that the big players will find a way to get in on the action … the same way huge private equity funds found their way into single-family homes.

But that day isn’t here yet. This means there’s still a lot of room for Main Street investors and syndicators to get in on the action.

And unlike many industries which can be offshored, tariffed, or cut out of the family budget in tough times … healthcare is an industry that will remain local and likely to enjoy continued public, corporate, and political support.

Residential assisted living is one of our favorite niches. We’re seeing many individual investors and syndicators having success in this space.

The demographics driving this sector are powerful and undeniable.

As baby-boomers have moved through the seasons of life, they’ve created huge economic bonanzas for industries which find ways to serve them.

Healthcare could end up being the biggest baby-boomer bonanza of them all.

So whether it’s medical office, residential assisted living, or some other healthcare related real estate play …

… this is one silver boom tailor made for strategic real estate investors and syndicators.

Until next time … good investing!


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Something weird is happening with mortgages …

Real estate investing is largely the business of using debt to acquire streams of income and build oceans of equity.

In the hands of a professional real estate investor, mortgages are like a super-charged power tool … making the job of wealth building easier, faster, and more profitable.

Of course, powerful tools in the hands of amateurs can do a lot of damage … hacking off chunks of equity or creating wounds which hemorrhage cash flow.

But in all cases, for any investor who has, or is building, a lot debt in their portfolio … it’s wise to pay close attention to the condition of credit markets.

Sometimes new tools create opportunity. Sometimes there are hints that something might be breaking down.

In a little more esoteric corner of our news feed, we noticed a potentially concerning headline …

MBS Day Ahead: Another Chance to Watch MBS Suffer
Mortgage News Daily, 8/27/19

For the uninitiated, MBS isn’t referring to the controversial crown prince from Saudi Arabia. They’re talking about Mortgage Backed Securities.

Mortgage-backed securities are the vehicle Wall Street uses to funnel investment dollars into Main Street real estate.

As you may recall, it was Wall Street stuffing toxic sub-prime mortgages into the MBS they sold to institutional investors that triggered the 2008 financial crisis.

So it’s well known that MBS suffering can lead to serious Main Street suffering, especially for aggressive users of mortgages … like real estate investors.

The notable takeaway from the article is this chart which shows mortgage rates have decoupled from 10-year Treasury yields …

image

Source: Mortgage News Daily

According to The Real Estate Guys™ secret decoder ring, this means mortgage rates aren’t falling as far as fast as those of the 10-year U.S. Treasury bond.

This is notable, because it’s generally accepted among mortgage pros that the two are inextricably linked … because it’s always been that way.

But not now. Weird.

Of course, it begs the question … WHY?

According to the article, bond “traders are citing increased supply … with an absence of buyers …”

Now you can see from the chart, this has only been going on for a couple of weeks … so perhaps it’s just a little anomaly and nothing to freak out about.

But just like some war vets have panic attacks when a backfiring engine pops like live ammo, we get a little spooked when the bid on MBS dries up.

After all, it was MBS going no bid was the nuclear bomb which ignited the 2008 credit market collapse.

No one is saying another Great Financial Crisis is imminent … although for the aware and prepared, it could be a HUGE opportunity …

… but softness in MBS demand is a dot on the curve worth noting.

Looking at some other dots …

US home price growth slows for 15th straight month
Yahoo Finance, 8/27/19

“The market for existing-home sales remained soft in June despite some boost from lower mortgage rates as consumers remain wary of high home prices …”

Remember, home prices reflect the value of the collateral for mortgages being packaged up and put into mortgage-backed securities.

When property prices are rising, lenders (the buyers of MBS) see their security go up in the form of greater “protective equity” which insulates them from loss in the case of default.

Also, equity gained from rising property values creates greater incentives for the borrower to make the payments.

Sometimes, in a rising price environment, as lenders compete to make loans, they’re willing to take on more risk at inception …

… because they believe rising property values will increase their security over time.

So whereas a lender might really want 20-25% protective equity (75-80% loan-to-value) … they might be willing to originate a loan at only 10-15% to get the loan.

Then, as prices rise and equity builds, the lender quickly ends up with the protective equity they’re looking for.

But when prices slow or reverse, you’d expect the opposite …

FHA sets limits on cash-out refinancing
The Washington Post, 8/27/19

“Beginning Sept. 1, FHA borrowers will now be limited to cash-out refinancing a maximum of 80 percent of their home value.”

We’ve also heard rumors that Fannie Mae will be limiting access to cash-out loans on multi-family properties.  Stay tuned on that one.

Is this a meltdown? Hardly. But it’s a subtle shift in the wind which bears watching.

Meanwhile, rates are GREAT. Loans are still largely readily available.

And if you’ve got lots of equity and cash flow, now could be a great time to liquefy equity using long term debt while paying careful attention to cash flow.

If there’s a chance prime properties in solid markets will be going on sale in the not-too-distant future, you’ll want to be prepared to go shopping.

Meanwhile, there are still affordable rental markets offering reliable cash flows TODAY.

Repositioning equity from high-priced markets to affordable cash flow markets or product niches can be a great way to make your balance sheet work harder … without having to wait for a recession (or worse) to provide bargains.

After all, sometimes markets don’t crash suddenly or at all. They simply recede slowly for a season before ratcheting back up.  So sitting on the sidelines waiting for “the big one” could take your entire career. Base hits win games, too. Never swinging means you’ll never get on base.

Meanwhile, it’s probably a good idea to pay close attention to credit markets on the macro level and cash flow on the micro level.

Until next time … good investing!


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Finding High Yields in a Hot Market


Everyone loves a hot market! But hot markets have their disadvantages. 

When markets heat up … prices go up … and yields go down. 

But that doesn’t mean investors are stuck. 

There are things you can do to adapt and keep cash flow up … without having to change markets. 

We sat down to chat with our good friend John Larson to find out how he has made the most of one of the hottest markets in the last ten years. 

In this episode of The Real Estate Guys™ show, hear from:

  • Your heating up host, Robert Helms
  • His hot-head co-host, Russell Gray 
  • Managing Partner of American Real Estate Investments, John Larson

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Adapting in a hot market

Dallas, Texas, has been a hot spot for real estate investors for the last decade. But .. like any market … the tide is starting to turn. 

After 2008, the rules of the market changed. 

Dallas stood out because it had not one … not two … but multiple drivers. 

It had population. It had education. It had transportation. It had a business-friendly environment, low income tax, medical finance, tech distribution … it was the whole package. 

It ended up being the best real estate market of the past ten years … and it’s not over yet … but yields have changed a lot. 

So, what’s an investor to do?

As Managing Partner of American Real Estate Investments, John Larson has had to adapt to the changing Dallas market. 

Many people knew John and his team as the Turnkey Single Family people in Dallas … but his company has had to change what they do while maintaining the big picture of WHY they did it. 

Debt syndication and using your retirement to make money now

John says that the Dallas market is hotter than ever … but in 2017, the cap rates on the single family homes started to get compressed. 

“You can only push rents up so far,” John says. “The values of homes kept going up because of the demand, so property went up as well.”

John says his investors came to him primarily for cash flow. They were looking for passive income. 

So, John needed to find some new ways to provide that cash flow that investors came for in the first place. 

The first project they took on was debt syndication … partnering with a developer and syndicating funds on the debt side. 

“We came in as lenders to buy the lot and get the construction completed and get those units leased as office space,” John says. 

A debt investor is someone that wants to have predictable income flow again, and it’s not as risky as other ventures … with the opportunity for BIG returns. 

At some point, you have to graduate from single family houses and move to the next level, like multifamily or office space. 

John says there are great deals to be found … but you have to do a little nosing around. 

And you can’t beat the opportunity for passive investing. 

With debt syndication, investors can be very hands-off and get as high a return as possible

Especially for the investor who is looking to lend money from their IRA or 401k, debt syndication is a great passive experience for them and a great way to maximize their retirement accounts. 

Many people don’t understand that they can put their retirement dollars to work … but as soon as you can self direct your retirement funds … you’ve opened up a whole world of alternative investments. 

Because of the nature of a retirement account, you can’t have a current benefit. It is really for tomorrow, not for today … so passive investments just make sense. 

These are solid deals in solid marketplaces … but people have a hard time getting their minds around why someone would want to use debt. 

In good deals, the asset pays back so quickly that there’s not a lot of risk on either side. 

It really just depends on how your personal investment philosophy fits in. 

Keep your money working 

If someone is looking to put their money to work in a debt syndication type of deal, the big question is … how long is this deal going to take?

John says that the longest term he has done so far was with a new construction project … that was 18 months. 

The average term for a deal is usually about one year. 

“We want to get you money back within a year and have another deal lined up for you so you can keep your money working,” John says. 

Keeping your money working … that’s the key to finding high yields in a hot market. 

Learn more about the Dallas market and how John and his team are finding new ways to create cash flow without changing markets by listening in to the full episode. 


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Lifestyle Investing for Family, Fun and Profit

You invest your money to make more money … but there is so much more to life than cash. 

Still, you have to have a way to fund your fun. Some say invest now and play later … but why not invest now AND play now, too?

We’re talking about lifestyle investing. 

Beautiful properties are available for you to live in … part of the time … and rent out for the rest. 

In this episode of The Real Estate Guys™ show, hear from:

  • Your playmaker host, Robert Helms
  • His playful co-host, Russell Gray 
  • The Grove Resort’s Nick Rohrbach

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Lifestyle investing is in style

You can find an investment property that pays you to own it … a place where you can spend time and enjoy yourself. 

It’s called lifestyle investing. 

When most people invest in real estate, they don’t think about living in the house that they choose as a rental. 

But so many people own a house that they USED to live in … but now rent out. 

Lifestyle investing turns this idea on its head and blurs the lines to bridge the gap. 

You find a property that you would love to spend time in occasionally … and in the meantime, it creates income. 

Most of us invest in rental properties to create wealth so that we spend that money somewhere that we enjoy. 

With lifestyle investing, you buy and asset what you want to enjoy yourself and organize it so that it pays YOU to own it. 

A unique rental niche

In a typical rental property, your tenant normally moves once a year. But a lifestyle property is usually rented by the night … which makes management more expensive. 

On the other hand, while a monthly tenant might be paying the equivalent of $20 a day … a nightly vacation renter could pay several hundred dollars. 

You’re paying to have a hands-off experience … and you want to deliver an exceptional service level. 

One of the beautiful things about this niche is that you’re marketing to affluent people. You have customers who aren’t necessarily as burdened when economic times turn backward. 

Another great thing about resort properties … renters are typically tourists from out of town … which means you aren’t as reliant on ups and downs in the local economy. 

And when you have a really unique property, you can attract people from all over the world. 

Don’t get us wrong … it’s not just the world’s most wealthy we’re talking about. 

Some people save all year long for their vacation. They are frugal the rest of the year … but when it is time for vacation, they want to have a good time. 

Let’s be clear … lifestyle investments are NOT timeshares. 

A timeshare isn’t really real estate. It’s more like a prepaid vacation. You don’t have equity ownership. Lifestyle investments CREATE CASH FLOW. 

If you don’t have enough cash to get started, resort properties can be the perfect opportunity for simple syndication. 

With a few owners, you can all use the property for a certain amount of time each year … and share the profits the rest of the time. 

Factors to consider

When selecting a resort property, you need to decide how the seasonal market is. 

It’s like being in retail. If you have a strip mall, you know your tenants lose money during the off season … but they make it all up during the holidays. 

If your property is a prime skiing location … think about what happens to it during the summer. 

You need to look at the property as a totality of ownership … and then you have to be really good at managing cash flow. 

The good news is that you don’t need to go in blind. It’s like we always say … if you’re going into a market you’re not familiar with … BUILD RELATIONSHIPS. 

In this case, you really want to build relationships with property managers

They know the demographic. They know the trends. They know the inventory … and they really know the income. 

It is so important with any deal … and especially with lifestyle investments … to do your due diligence. 

But once you do … if you choose your market correctly … you’ll discover a market that is robust and not hung up in too much seasonality …. and then you choose a product that makes sense for you. 

Rentals at The Grove Resort

We caught up with our friend Nick Rohrbach at The Grove Resort to learn more about a really interesting lifestyle investment opportunity. 

The Grove is an amazing resort property in Orlando … amazing facilities, a 7-acre water park, a four-star spa, and a stone’s throw from the Disney theme parks.

The people who visit here are all about the lifestyle. 

And for investors, it means owning a beautiful, professionally managed resort property in one of the hottest markets in the USA. 

Nick says that many tourists come to spend their days at theme parks … but then they want somewhere comfortable and luxurious to come back. 

What makes The Grove a unique opportunity is that the big ticket amenities … including the water park … are included in the rate. 

“That’s what makes our occupancy higher than average, and average occupancies in the area are already fairly high at 77.5% in Orlando,” Nick says.

The Grove caters toward a wide variety of guests … there are spaces for weddings, family reunions, and small conventions. 

The suites at The Grove are all two and three bedroom condos … perfect for families or employees. 

Units are completely turnkey … and managed by a team that has been in business in the area for over 40 years. 

“And Orlando really is a year round destination,” Nick says. 

Ultimately … like any investment opportunity … you need to find a deal that works with your personal investment philosophy. 

Interested in learning more about The Grove? “Come on-site and stay with us,” Nick says. 

To learn more about lifestyle investing and opportunities at The Grove Resort, listen in to the full episode. 


More From The Real Estate Guys™…

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


Love the show?  Tell the world!  When you promote the show, you help us attract more great guests for your listening pleasure!

Podcast: Lifestyle Investing for Family, Fun and Profit

Life and investing are much more than just making money.

Of course, profits are important for funding a fun lifestyle … but why wait?

In this episode, we discuss the idea of investing in beautiful properties you’d love to live in … sometimes … and rent out the rest of the time.


More From The Real Estate Guys™…

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


Love the show?  Tell the world!  When you promote the show, you help us attract more great guests for your listening pleasure!

Cashing In On the Space Race – New Homes in a Market Ready for Lift-Off

The space race is on!

No … we’re not talking about the great cosmos overhead. We’re talking about a race for space in a thriving market. 

Central Florida is thriving thanks to international tourism, low taxes, strong population growth, and great infrastructure. 

Billions of public and private dollars are making their way into this market … We’ve liked it for a long time … and it’s getting even better. 

Discover how YOU can cash in on this space race as we hear tips from an on-the-ground expert. 

In this episode of The Real Estate Guys™ show, hear from:

  • Your out-of-this-world host, Robert Helms
  • His out-of-the-way co-host, Russell Gray 
  • Central Florida investment property specialist, Jean Gillen

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Welcome to the “space coast”

Today we’re talking about a market that is well-positioned for growth and equity … it’s the “space coast” in Florida!

Central Florida is one of the markets we’ve loved for a long time … every time we visit we see cranes helping build new projects. 

When we analyze a market, we look at the dynamics in supply and demand, capacity to pay, and what’s going on in mortgage rates and demographics … and don’t forget taxes and incentives!

There are so many things happening right now in this particular market that create an environment where equity can really POP. 

One big story of this area is … the space coast. 

For many years, the space industry was 100 percent a government entity. You had NASA … and that was it. 

But when the shuttle program stopped … everything changed. 

Individual businesses and entrepreneurs came in to fill the void and pick up the slack … and things really blasted off!

We see a lot of similarities between what is happening in Central Florida now and what happened several years ago in Silicon Valley. 

These organizations are growing and bringing in a new workforce to fill jobs … but there aren’t enough houses. It’s a great opportunity as an investor to help find a solution. 

Growth and opportunity in Central Florida

Our good friend Jean Gillen and her team at Gillen & Associates are Central Florida investment property specialists. 

For nearly 30 years, Jean has been actively helping investors cash in on opportunities in this marketplace … she knows this place like the back of her hand. 

For Jean and the investors she helps every day, the space race is real. 

The Central Florida market is uniquely nestled within an hour of three international airports … Orlando, Orlando Melbourne, and Orlando Sanford. 

It’s the number one visited place in the world … 75 million people come through each year. 

Some are passing through to other connections. Others come for theme parks and to hop on cruises. And the rest … it seems … come for NASA.

And so many of those people come to stay. 

Over 350 space industry companies have moved to the market … after all, it’s the only place in the United States from which you can put a man in orbit. 

A huge amount of millennials have followed those companies for job opportunities … but baby boomers are moving in as well. 

With no intention of retiring any time soon, baby boomers want to live around other baby boomers. The 55+ communities come calling … and they are cheap and cheerful. 

But it’s not just the space industry that has come to town. Infrastructure has to grow to serve all those new residents … like doctors, retail, and restaurants.

Florida is also a prime spot for tax incentives … and there’s no state income tax. 

“I don’t think there is a better economy in the United States right now,” Jean says. “Oh, and the weather’s good.”

Another important thing to note, Jean says, it that many of the people coming to the area aren’t necessarily coming for a full-time gig. 

Many of the workers in these industries come on a one or two year contract … which means that these folks will always be tenants … and you can plan on a steady flow of tenants for rentals.

Properties with potential

Most of the houses Jean and her investors work with are new builds that come in at around $210,000. Insurance … including hurricane insurance … comes out to about $600 a year. 

“The hurricane risk in the area is very low. That’s why the insurance rates are so low. It should make you feel fairly safe on that front,” Jean says. 

Another unique factor in the Central Florida market … it’s actually a better deal most of the time to buy a new build over a resale house. 

And tenants are definitely attracted to new … and all the amenities that come with them … granite countertops and stainless steel appliances anyone?

Jean also feels it’s important to keep most of the homes owner occupied. 

“It keeps the neighborhood up, so we usually keep the amount of houses owned by investors in a development at 10 percent. It works out so much better that way for everyone,” Jean says. 

But as with any market, there are unique considerations to keep in mind. 

Jean says she never helps investors buy lots that are in flood zones. The properties have to be turnkey … and a good school district is always a plus. 

Many of the tenants in the area work several days a week from home … so extra bedrooms that can function as a home office space are a must. 

And Jean is all about beautiful backyards … most lots are a quarter of an acre … and there is no HOA. 

Typically, tenants stay for three years … and tenant-landlord laws are very landlord friendly. 

Joining the space race 

Jean and her team work exclusively with investors … but those investors come from a variety of situations and backgrounds. 

Some are 30 years old … others are 70 … but they’re all looking for a profitable deal. 

We’ve said it before … and we’ll say it again … the key to a great deal is finding a market that makes sense, finding the right team, and THEN finding the right property. 

To learn more about Central Florida … and to find out if this it the right deal for you … listen in to the full episode. 


More From The Real Estate Guys™…

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


Love the show?  Tell the world!  When you promote the show, you help us attract more great guests for your listening pleasure!

Podcast: Cashing In On the Space Race – New Homes in a Market Ready for Lift-Off

The stars are aligning for real estate investors in a market we’ve liked for a long time. And it’s getting even better.

Billions of dollars … both public and private … are making their way into a re-invigorated space race … in a market already thriving thanks to international tourism, low taxes, strong population growth, great infrastructure, and so much more.

Discover how investors are cashing in on the space race as we discuss Central Florida with a boots-on-ground market expert!


More From The Real Estate Guys™…

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


Love the show?  Tell the world!  When you promote the show, you help us attract more great guests for your listening pleasure!

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