Six lessons from Sears’ bankruptcy …

Your reaction to the news of Sears’ bankruptcy would tell us a lot about your age and economic status growing up.

But whether you’re sad and nostalgic because there’s another nail in the coffin of an iconic piece of Americana …

… or you’re completely oblivious because the Sears brand has no meaning or relevance in your life …

… there are several important lessons for real estate investors to be gleaned from the slow, painful demise of this 125-year old retail institution.

We could do an entire series on this topic … as each lesson could be an article in its own right.

But with so many things to comment on, we’ll keep each lesson short …

Lesson #1:  Evolve or die

Sears revolutionized retailing when it pioneered catalog sales.  Sears was the Amazon.com of its day.

But Sears failed to evolve with technology … and with a shrinking middle-class.

So pay close attention to emerging trends in your niche and do your best to stay ahead of the curve.  Attend conferences.  Talk to other active investors.

Because the world is constantly changing.  For example, the services and amenities desired by today’s tenants are very different from even 10 years ago.

And as the Millennial demographic wave rolls through the seasons of life, don’t assume they’ll mirror the needs of the boomers before them.

Surveys are already indicating it’s a whole new ballgame.  So be prepared to evolve … or die.

Lesson #2:  Don’t let the fox guard the hen-house 

Maybe this is a little harsh … and we’ll admit we only have visibility into the situation from what we’ve read in the news …

… but it sure seems like the head guy at Sears had a huge conflict of interest.

We’re not here to accuse or defend.  Time will tell if he wins or loses, but it seems clear he’s on both ends of the deal … so at the very least, the temptation is there.

As your portfolio grows, and more people are involved in helping you operate it, be VERY aware of when someone may be tempted to enrich themselves at your expense.

And be EXTRA careful when you’re managing investor money.

Lesson #3:  Consuming equity to pay operating expenses is a cancer.

Because Sears failed to evolve, it managed to lose money for SEVEN YEARS in a row.  It made up the shortfall by going into debt and selling off assets.

We know this is a bad plan because we’ve done it. (See Lesson #4)

It’s one thing to see your net worth shrink as a result of fluctuating asset values.  This is par for the course when you denominate net worth in dollars instead of doors.

But as long as you’re playing the long game, fluctuating asset values is a side-show.

And if your cash-flows are solid and your holdings of real assets (doors, tenants, properties, ounces, etc.) is growing, you’re on the right path.

When the market gives you a temporary spike of paper equity, it can be smart to quickly convert it into more units of real value.  But that’s a lesson for another day.

Our point now is when you start using equity to debt-service or pay operating expenses, your portfolio has cancer.  And you better fix it FAST.

If you don’t, your negative cash-flow will eventually consume you … like it has Sears … even though it may take many years.

Lesson #4:  Don’t let a strong balance sheet make you lazy.

With lots of assets, including real estate, Sears’ management could handle the financial problems their business problems created.

It’s like a football team with a big lead that stops playing to win and just tries to protect the lead.

They use the scoreboard to make up for not scoring points on offense or giving them up on defense … hoping the game-clock will win the game.

When your P&L and cash-flow reports tell you that your properties are failing, don’t kick the can down the road with your balance sheet just because you can.

Because when your balance sheet is really strong, you might be able to avoid dealing with the real problems for years … sometimes decades.

But you risk losing the momentum, resourcefulness, and relationships you need to turn it around.

As Jim Collins says in Good to Great, you must “confront the brutal facts.”  And the sooner, the better.

Uncle Sam, are you listening?

Lesson #5:  You’re in the people business, not the numbers business.

Your brand (your reputation … how people feel about you) is your MOST important asset.

When you have lots of people who know you, like you, trust you … then even when you need to change what you sell because of market dynamics … your customers will buy.

Over-time, Sears … like MANY big companies … became more focused on the numbers than on the customers’ experience.

When this happens, you not only break trust with your customers … you forget how to innovate.

Innovation comes from looking at everything through the eyes of the customer and asking, “How can we make this better for the customer?”

When you do this, you grow revenue, retention, referrals, and profit. It’s an abundance mindset.  And it takes faith.

But when it’s only numbers, you ask, “How can we squeeze more profit out of what we’re already doing?”.  It’s lazy (see Lesson #4).

It’s also a reflection of scarcity thinking.  It’s rooted in fear, and asks the customer to conform to the company’s needs.  Bad plan.

Your tenants are customers. They have needs.  They aren’t just rent mules who exist to pull your financials to the next plateau.

When you take care of the people and your business model, your numbers take care of themselves.

Lesson #6:  It’s not over until it’s over.

We got hit HARD in 2008.  In many ways, we’re still recovering.  For Sears, Chapter 11 provides some relief while they work on re-inventing themselves.

Sometimes no one believes in you and you’re on your own to keep grinding it out to save things.

We don’t know anything about Sears’ team or relationships.  So we have no opinion on whether they have what it takes to make it or not.

But there are many companies who go into bankruptcy, re-organize, and get back on their feet.  American Airlines is a fairly recent example.

For Main Street real investors and entrepreneurs, it’s like Les Brown says …

“Any day you wake up and there’s not a white chalk line around your body … it’s going to be a good day!”

In other words, where’s there’s life, there’s hope.

So whether you’re crushing it now … or being crushed … it’s wise to never take anything for granted.  Just keep pushing forward because neither good times nor bad times last forever.

Until next time … good investing!


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Forming a real-world investment thesis …

We all have beliefs that guide our investment decisions … even when we don’t put much thought into them.

Sometimes we don’t even know what we believe, until we’re sitting in a pile of rubble asking ourselves, “What the heck was I thinking?”

So sometimes it’s smart to slow down to go faster … investing time to form a more cogent investment thesis.

That’s why we do our annual goals retreat, and make it a high priority to get away together with other serious investors at conferences and summits.

Plus, you compress time frames by listening to and talking with others … especially those with different perspectives and experiences.

Honest investors will tell you some of their hypotheses proved true, while others didn’t.  We’ve never met anyone who’s ALWAYS right.

But if you can be right more than you’re wrong … you may lose a few battles along the way, but you’ll win the war.

That is as long as you NEVER risk it all on any ONE thesis or deal.

For example, before 2008, it could be said U.S. housing prices had never declined.

Sure, individual properties … even certain areas … had pulled back or dipped.

But across the United States, the average and median prices of homes had been on a 40-year upward trajectory.

So everyone from Wall Street to Main Street had investment strategies based on the premise that U.S. housing prices were highly stable.

Of course, in typical fashion, the wizards of Wall Street leveraged their investment thesis to the extreme … using multiple derivatives of mortgage-backed-securities …

… and by so doing changed one of the important dynamics of stability (sound loan underwriting) … with catastrophic results.

Some saw it coming.  Most didn’t.

So again, never bet the farm on one deal, one market, or one thesis.  We know … because we’ve done it.

Way back in pre-2008, Dallas Texas was one of the most boring major real estate markets in the nation. B-O-R-I-N-G.

But on the 2009 Investor Summit at Sea™, Robert Kiyosaki’s real estate advisor Ken McElroy … the master of simple brilliance … told us his investment thesis.

Ken said he thought that coming out of the recession, energy producing economies would create the most jobs, attract the most people, and lead to steady demand for working class housing.

He reasoned those jobs are linked to where the energy is … because you can’t move an oil field or huge refineries to China or Mexico to take advantage of cheap labor.

So any region heavily involved in energy would probably do well.

In the fullness of time, Ken’s thesis proved correct.  Texas led the nation in job creation and the energy sector was a big part of it.

Dallas … along with other energy markets … boomed.

We understood the concept and wondered what other industries are geographically linked?

We came up with distribution and healthcare.  After all, people need supplies … and those supplies need to be shipped.

People also need healthcare, especially as boomers age, and they’re not going to China for it.

And neither supplies or healthcare are highly discretionary either.  People need them in good times and bad.

So things that are necessary at all times, and linked to geography and/or extremely hard to build or move infrastructure …  are more likely to remain stable.

Based on that thesis, we took an interest in distribution markets like Memphis and Dallas (energy AND distribution) …

… which both turned out to be great residential real estate investment markets to this day.

This is just another real-world example of starting with a conversation with a smart investor … forming a simple investment thesis (focus on markets with geographically linked jobs) …

… doing some research, using common sense, and then stepping out and testing the thesis in the real world.

Over time the thesis is either proven or refuted.  In this case, so far so good!

Of course, the “geographically linked jobs” thesis is only about regional industry.

There’s also demographics and economics to consider …

Robert Kiyosaki has been warning for years about a shrinking middle class.

Robert’s a smart guy.  So we listened, we researched, and we reasoned.

And because it made sense to us, we rolled the premise of a shrinking middle class into an investment thesis described in this 2011 article.

Later, building further on our studies of the shrinking middle class, we found opportunity in something we call the dumbbell effect.

We won’t rehash those musing here, but they’re worth reviewing today … now that you have the benefit of hindsight.

Lastly, this very recent news article provides perspective supporting another long-held thesis we’ve had about affordable housing markets.

According to ATTOM Solutions, one of the industry’s biggest and most reputable data crunchers …

 “At the moment, demand for rental homes is strongest in less expensive housing markets, which serve households with lower incomes.”

“The weakest demand is in the high-end and the strongest demand is in the low-end …”

A “booming” economy might low unemployment and rising wages.

But it can also mean higher interest and energy expenses, which are cost components of EVERYTHING people need to buy.

So the national economy might be booming … but is it showing up for the working class folks on Main Street?  Maybe.

But when it comes to residential real estate, we still feel safer in affordable markets and property types … things like B-class apartments and mobile homes.

Right now, the data seems to support the thesis.

But what about going FORWARD?

Today, investors are facing a rising interest environment for the first time in decades.

At the same time, and perhaps related, the dollar is under attack with a global resistance led by China, Russia, Iran and other nations.

Mainstream financial news pays some attention to these things … but only from Wall Street’s perspective.

Yet these events all directly or indirectly roll down to Main Street investing … creating both challenges and opportunities.

While we’re still formulating our theses for today’s changing world, it seems likely that product classes and markets with higher-yields will become capital magnets …

… eventually driving the yields down, but also creating gobs of equity for people already in the space.

That means now could well be a land-grab opportunity in those key markets and product types.

There’s also the changing of the demographic guard as baby boomers sail off into their rest-home years and Millennials become the new pig in the python.

So paying attention to Millennial trends will become increasingly important.

That’s why we have an Investor Summit at Sea™ Young Adult Program to get more young people into our conversations.

Another developing trend is the current drive to rebuild America’s manufacturing capabilities.

As this leads to a revitalization of the rust belt, it could create a convergence of affordability, demographics, and capital attraction … with lots of opportunity.

The point of all this is the world is changing … as it always does.

Our experience is the most successful investors pay close attention, get lots of qualified input, and then make important adjustments to their core theses so they can stay ahead of the curve.

Until next time … good investing!


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Ask The Guys – Finding Great Agents, Vetting Syndications, Starting Small

We’re back … with an all-new episode of Ask The Guys!

In this series, we answer YOUR questions about all things real estate.

Before you click play, please remember that we are not tax advisors or legal professionals. We offer ideas, not advice … please run any investment ideas past a professional before putting them into action.

Now, listen in to The Real Estate Guys™ show! You’ll hear from:

  • Your pondering host, Robert Helms
  • His pesky co-host, Russell Gray
  • Bob Helms, the godfather of real estate

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Syndication, securities, and accreditation

Susan, from New Hope, Pennsylvania, wants to know what real estate investment opportunities are open to non-accredited investors.

The short answer is A LOT. For the long answer, let’s start with a definition.

An accredited investor is someone who has a net worth of over $1 million excluding their primary residence OR someone who has had an annual income of $200,000 for at least two years ($300,000 for married couples).

These requirements allow the SEC to regulate the kinds of investors who get involved in securities investments.

They are a way to verify you’ve reached adequate financial aptitude and won’t run aground by investing in a big deal.

If you’re not at that level yet, that’s perfectly all right!

You have multiple options:

  1. Employ a tenant-in-common ownership to invest in a property as a group. Make sure you structure the deal so it stays within SEC regulations.
  2. Make friends with a syndicator. Deal makers can work with up to 35 non-accredited investors through the 506B exemption.
  3. Work with an accredited partner to complete your first few bigger deals.
  4. Invest in a publicly traded security in real estate.
  5. Use a crowdfunding site to invest limited funds into a larger project.
  6. Make a private loan to other investors.

HOWEVER … keep in mind that the average beginning investor is NOT accredited. Condos, single-family homes, and other smaller properties are ALL available to non-accredited investors.

In fact, the vast majority of real estate investment opportunities are available to non-accredited investors.

The fundamental piece of the equation is education. You have to know WHAT you’re buying and WHO you’re doing business with for every deal before you can move confidently into a deal that risks large amounts of your equity.

Michael, from Richardson, Texas, asks a related question … when does a deal become syndication?

Syndication simply means putting together money from a group of individuals.

Things start to get a little tricky when some of those individuals are passive investors, however … because then you have a security and have to make sure investors are accredited, like we talked about above.

When you’re working with a group of people to do a deal, make sure you hire a real estate or securities attorney to properly document your deal. We DO NOT recommend the do-it-yourself method here.

Repair first … or sell as-is?

Betty, from Littleton, Colorado, is wondering whether her in-laws should fix the broken foundation of their home before selling or sell it as-is.

Bob reminds us that as-is means as disclosed … it’s important to tell a potential buyer EVERYTHING that could be an issue, including any reports you’ve commissioned.

The best solution in this case might be to get a report on the damage to the foundation … and then decide whether to sell or fix.

There’s no automatic best answer here … in a strong market, you can probably get away with as-is, while in a buyer’s market, you may have to do more work.

To figure out the best option, sit down with your real estate professional.

Investing to learn

We got a question from Daniel, in Garden Grove, California. He is wondering how to invest in larger deals as a learning endeavor. He wants to expand beyond single-family investments. Like our first questioner, he is not accredited.

Let’s start with what you need to do to FIND deals as a passive investor.

Passive investors bet on both the jockey and the horse. In other words, you need to know the details of the deal … AND know who you’re doing business with.

That’s why networking events are so important. And the TYPE of events you go to are important too … we bet you’ll find more dedicated, passionate investors at professional development events than at events where syndicators get together to show off their deals.

If you want to learn, put yourself out there, get to know people, and pick out a few niches you find interesting. Then put a smaller amount of money into multiple deals … instead of putting all your eggs in one basket.

And make sure you’re working with a syndicator who is invested in your educational process. You want a syndicator who will let you be a fly on the wall.

Passive investment options for residential assisted living

Bill, in Northbrook, Illinois, asks whether it’s possible to invest passively in residential assisted living or AirBnb investment options.

If you’re interested in residential assisted living, we recommend looking into Gene Guarino. His educational events have taught many investors how to step into the assisted living field … and many of those investors become syndicators willing to work with investors like Bill.

AirBnb, on the other hand, is something we’re not 100 percent sure about yet. There’s some legal resistance and the whole industry can be a bit sketchy.

We just don’t know enough about AirBnb investing to recommend this option … and we haven’t yet found an expert who’s really crushing it in that field. For now, this option is just a wait-and-see niche for us.

Book releases and Belize trips

We answer three quick questions from curious listeners …

Ellie in Seattle wonders where she can find a copy of Bob Helm’s new book, Be The One Percent.

The book is meant to teach realtors about how to serve investors … and become investors themselves.

To get your hands on a copy, listen in to the show for special access.

John, from San Antonio, Texas, wants to know whether we hold a convention in Belize. While we don’t hold a convention … we do conduct Belize discovery trips three to four times a year!

These trips are a great way to get an in-depth perspective on the Belize market … and even if you’re not ultimately interested in offshore investing, you’ll learn a heck of a lot about market analysis.

Holly, from Pingrove, Illinois, wonders whether we have any Belize field trips scheduled in the near future. To check out upcoming field trip dates, check out the event page.

Finding the truth about private lending platforms

We were excited to hear from a former participant in our mentoring program. Domingo, who’s located in San Anselmo, California, wants to know what we think of a particular private lending platform.

He also wants to know what we think about his general economic theory … that there’s a strong possibility the market will come down, and that real estate will continue to be a viable investment option during a crash, even if liquidity dries up.

About the lending platform, we can’t really comment. There are several peer-to-peer lending platforms that specialize in crowdfunding loans, and these can be a great way to diversify loan types.

But lending is lending … so no matter the loan type, you have to understand the basic underwriting … what you get if a foreclosure happens.

Don’t get lost in the weeds. Instead, understand the basics … what are you giving, and what do you get? And if things go wrong, what happens?

As to the economic theory, we think Domingo is on the right track. ALL of our listeners should be thinking about how to position themselves so they can thrive when a downturn happens.

Land brokerage and multi-family investing

Our last question is from Troy, in Millcreek, Washington. Troy is looking to get better as a land acquisition agent … but he also wants to dip his toes into multi-family products.

We haven’t been in the land brokerage business, but we think there are a few things to take into consideration.

First, land is not land is not land.

By that, we mean every land bank could lead to a different outcome … so you need to look at where every piece of land will end up, whether that’s agriculture or retail development.

Second, every specialty brokerage follows the 80/20 rule … 80 percent of real estate is sold by 20 percent of agents. So, be the 20 percent.

That means you need to be really well educated, have outstanding product knowledge, and build excellent relationship.

To succeed, look for the big players in your field and try to get in a room with them. Pick their brains, learn the language, and build your business.

And ask yourself the most important question … who is my customer? Understand the needs of the person you’ll be selling to.

As to multi-family, our friend Brad Sumrock has a wealth of resources. He’s one of several multi-family investors on our Summit at Sea faculty … but he also holds a two-day training three times a year in Dallas, Texas.

It’s an invaluable learning opportunity, and one we can’t recommend enough.

Have a question of your own? Ask us here. Until next time, happy investing!


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Housing horror … or hallelujah?

Regular readers know we follow the news pretty closely. Well, okay … we’re obsessive compulsive news junkies.  But for good reason!

The economy and underlying financial system (two VERY different things) form the environment all our money-making ventures exist in.

When the financial winds change, alert investors adjust their sails to put the wind at their back.

Today’s “booming” economy is creating asset price inflation … including stocks and real estate … depressing bond prices (which in turn, drive interest rates UP).

PLUS the Federal Reserve continues to tighten monetary policy by raising its target rate.

Unsurprisingly, as we discussed last time, mortgage rates are rising along with the 10-year Treasury … and this adds to downward pressure on rising real estate prices.

Mainstream headlines tell some of the story.  But we also watch trade publications for clues that don’t always make it to the mainstream.

So we opened up our news archive and scanned industry headlines for the last few months to see if there’s a discernible trend …

Worst home affordability in nearly 10 years – June 19, 2018

U.S. home prices appreciating at slowest pace in two-years – July 24, 2018

Foreclosure Starts Increase in 44 Percent of U.S. Markets in July 2018 – August 17, 2018

Home flipping returns drop to 4 nearly 4-year low  – September 4, 2018

Rent jumps cool in hot markets, but for how long? – September 11, 2018

Down payments rise with stiff competition for homes – September 20, 2018

Without digging into the weeds of each article (though they’re all interesting reads) …

… it seems like home prices have risen to a resistance point … slowing their upward trajectory … while marginal owners are getting pushed off the back of the bus.

Meanwhile, real estate “day traders” (flippers) are finding it harder to get in and out quickly because the rising-price gravy-train is tapering off.

Okay, let’s take a breath here and process …

If you’re buying real estate for short term passive equity growth, this is probably bad news.  The market isn’t just dumping generous portions of equity on to your balance sheet.

Also, if you’re in at the high end of hot markets, you may have to hold longer than you thought.  Hopefully, the cash flow is there to help you ride out this phase of the cycle.

Those who went into the high-end of hot markets with thin or negative cash flow … whether as an investor or a home-owner … could find themselves land-locked and bleeding for a while.  No fun.

We’d need to dig deeper, but these are often the source of increasing foreclosures.

BUT … if you’re in the middle price range of moderate priced markets, you may end up being the beneficiary of INCREASED demand …

… as folks from higher priced properties and markets, both as buyers and renters, crowd into your space.

Remember, when you’re at the top, there’s no one above you to move down in tough times to boost demand in a soft market.

That’s why we’re fans of middle markets … where there are people below you to move up in good times, and people above you to move down in bad times.

And when it comes to apartments, nearly all new builds add to the top of the market …. increasing competition and pushing down prices at that level.

But it’s not feasible to build new middle market inventory, so while it’s more competitive to buy those properties … there’s also good demand from renters once you have one.

Whether it’s rising mortgage rates, rising consumer interest rates, price inflation, or rising home prices …

… it seems the stars are aligned for strong demand for rental properties.

Just like the financial crisis, housing horror can be landlord hallelujah.

All that to say that the right properties in the right markets with the right financing, while harder to find, still make a lot of sense.

Just be SURE your underwriting is realistic … because right now, the market is saying the easy money gravy train is slowing down.

It’s also probably wise in any market, but especially now, to project growth ONLY on those things you can control (added value) … and not count on a rising tide to lift your boat.

And if you’ve got great properties with equity … and you want to keep them for the long haul … it might be a good time to look at liquefying some of that equity to keep as dry powder if prices soften.

With rising rates, you can probably lend out some of the proceeds on desirable properties for a high yield (first position with a good chunk of protective equity!) …

… or invest into high-yielding properties or pools (mobile homesresidential assisted living, etc.) where the income from only portion of your loan proceeds can cover the ENTIRE loan.

This lets you store the rest for picking up bargains when the falling tide flushes speculators who are out of position to make it to the next up cycle.

Bottom line is those who are great at managing cash flow will win.  Those who aren’t will get flushed.

Until next time … good investing!


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.


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Finding Opportunity in Comeback Markets

Job creation is up. Even better news … the jobs being created are blue-collar jobs, many in the reviving manufacturing industry.

This means more wages, more workers … and more folks who can pay rent.

In this episode of The Real Estate Guys™ show, we talk to an entrepreneur who has built a real estate business in an off-the-radar market.

The truth is, the hot markets you always hear about … San Francisco, New York, Los Angeles … don’t make sense for investors.

On the other hand, markets with not-so-great reputations might get you the best bang for your buck, depending on where they’re at in the market cycle.

Our conversation today delves into what makes a market make sense … and what it takes to make a profit in sensible markets.

Listen in … you’ll hear from:

  • Your reputable host, Robert Helms
  • His bad-reputation co-host, Russell Gray
  • Bryce Keesee, founder of Great Lakes Capital Solutions

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Riding the market waves

Let’s start with a quick real estate investing lesson.

Many people generalize the entire real estate investment category. They think real estate is overheated … so there’s no opportunity anywhere, for anyone.

That’s just plain wrong.

Real estate is NOT and asset class. It’s NOT a market. It’s an investment category with MANY different markets, each of which is in its own unique place in the market cycle.

But smart investors don’t look at averages. They take the time to do research, look for clues, kick the dirt, and meet people in individual markets.

When you’re looking for great markets, one excellent option is the comeback market.

Markets go through phases …

  1. Growth.
  2. Stabilization.
  3. Deterioration.
  4. Revitalization.

Catching a market as it hits step four is the key to riding an up-wave.

You don’t want to get in before things have started looking up … but you do want to get into markets that are turning upwards before the crowd.

Case study: Cleveland

Our guest Bryce Keesee got into real estate in southern Florida 15 years ago … but he has since switched to a market in the midst of MAJOR revitalization.

The market? His hometown … Cleveland, Ohio.

You might not initially think of Cleveland as a great investment market. That’s part of what makes it so great.

Bryce says the market offers many benefits … good price points for properties and rents, a steady flow of dependable tenants, stable worker incomes, and best of all … high cash flow.

Let’s get into what makes Cleveland so great.

First of all, a revitalized manufacturing industry only adds to the wide variety of blue-collar companies in the city.

Steel manufacturers join other major employers like Lincoln Electric, Progressive Insurance, several Amazon warehouses, and the renowned Cleveland Clinic, just to name a few.

This variety offers stability … and provides blue-collar jobs that keep rent prices steady.

These jobs are one reason Cleveland has a reputation for affordability.

Bryce is a fan of blue-collar workers because they tend to be long-term tenants. Many of these workers don’t plan to buy a home. Purchasing a property is “off the list” of goals for many people.

Dive into the details

We asked Bryce to give us the low-down on his typical rental property.

Bryce says properties are slightly different depending on location.

The east side of Cleveland has been abandoned for many years, although it’s starting to see growth now. So price points are a bit lower.

Bryce says single-family homes on the east side sell for $60-65,000. Monthly cashflow is $750 a month, on average … well above one percent.

The west side, on the other hand, has slightly higher price points and rents. Homes sell for 70-75,000, and rents are in the $900 range.

It takes 30-60 days from closing to repair and refurbish properties so they’re ready to rent.

The rehab process doesn’t follow a cookie-cutter template. Bryce and his partners have standardized the contractors and materials used, but each property gets an individual evaluation.

He wants well-functioning, desirable rentals that will save the company time and maintenance costs in the long-term.

That keeps tenants happy. Bryce also works to keep tenants happy by building relationships with tenants via his property management company.

“Our tenants love us,” Bryce says. A big reason is great communication from his property management team, with whom he has a 10-year relationship.

What about the general atmosphere of the Cleveland market? Ohio is extremely landlord-friendly, says Bryce. The law allows for a 3-day notice to vacate for non-paying tenants. The eviction process is only 10 days.

That doesn’t mean Bryce follows those timelines … he says his response is to establish a relationship with tenants and make sure the lines of communication are open. Yet another reason why property management is so important!

Investors interested in the Cleveland market should listen in to get access to a special report by Bryce that includes even more details!

Ohio Field Trip

Bryce really loves Ohio, and he thinks other investors will too.

Cleveland has great sports teams and the second-largest performing arts district outside of New York City.

But it’s also experiencing a revitalization that you can only really understand by kicking the dirt.

That’s why we recommend the Cleveland Field Trip.

You’ll get a chance to tour Cleveland with Bryce. But you’ll also learn about the investment model Bryce uses … an excellent education even if Cleveland isn’t right for you.

We live in an era of over-saturated markets. It’s hard to find markets that make sense. But some markets are just starting to get hot.

The very best way to get in on these markets is to learn from someone who has boots on the ground. Because remember, you’re not looking for a property, or even just a market … you’re looking for a TEAM.

And a field trip is the best way to meet the people … who know the market … and can help YOU build your own brilliant team.


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Is THIS what China and Russia are REALLY doing …

It’s no secret the United States has been at odds with both China and Russia lately.

So what?  What does it mean to Main Street entrepreneurs and investors?

Maybe nothing. Or maybe a lot more than you think.

Just a few months ago, Russia dumped a majority of the Treasury holdings.

Three out of the last four months, China has reduced its Treasury holdings.

And now Market Watch reports … 10-year Treasury yield hits 4-month high as bond market sells off …

“ … investors fear China … could sell its Treasury holdings to push the U.S.’s borrowings costs higher.”

Not TWO days later, Market Watch reports … Mortgage rates jump to four-month high as housing hits a bump. 

That’s because, as any credible mortgage professional will tell you, mortgage rates track VERY tightly with 10-year Treasury yields.

So you don’t need to be Sherlock Holmes to see …

… there’s a direct connection between what Russia and China are doing and YOUR Main Street real estate investing.

But it’s bigger than interest rates.  Interest rates are more a reflection of currency and bond markets.

The United States has enjoyed … and some might say abused … a privileged status because of the U.S. dollar’s status as the world’s reserve currency.

China and Russia have both publicly proclaimed their upset over how the U.S. the dollar system … and they’re working to dethrone it.

Some people who are well-qualified to have opinions think …

… there’s a HUGE danger to dollar-denominated investors if the dollar LOSES reserve status.

According to Bloomberg, famed billionaire hedge fund manager Ray Dalio spells out America’s worst nightmare … warning the U.S. “not to take its reserve currency for granted.”

“The idea that the U.S. dollar would lose its status as the world’s reserve currency is an existential threat unlike just about any other to the U.S. government and financial markets as a whole.”

“ … for just about everyone’s sake, we should hope that he’s wrong.”

Last time we looked, hope is not a strategy.

We don’t make this stuff up.  We pull it right from the headlines.  In fact, we’ve been covering it closely for more than five years.

The good news is these things move S-L-O-W-L-Y.  The bad news is these things move S-L-O-W-L-Y.  It’s easy to fall asleep at the wheel.

It’s also easy to ignore or dismiss the people who keep sounding the alarm.

But if you earn dollars, borrow dollars, measure asset values in dollars, or use credit markets in any way … the future of the dollar impacts YOU.

Most Main Street investors aren’t paying any attention at all … 

They don’t study history.  They don’t recognize the warning signs … even though there are clues in the news every day.

They won’t see a dollar crisis coming and won’t know what to do if it happens.  It will strike them like a thief in the night.

But it doesn’t have to happen.  In fact, the more people who are aware and prepared, the less likely it will happen.  And the less severe it will be if it does.

Of course, warnings are only useful if understood and heeded.

Otherwise, you wake up one day and credit markets seize up … asset prices collapse … and all those TRILLIONS in paper wealth everyone is celebrating is WIPED OUT.

Think about how hard you work and study to create profits in your business and investing.

How much time do you invest in studying how to avoid LOSING it all?

If you’re like most investors, it’s not very much.

Riding an uptrend is an easy way to FEEL like a genius … but TRUE investing genius is revealed in the BAD times.

Warren Buffet’s famous quote sums it up …

“Rule #1:  Don’t lose money.  Rule #2:  Remember rule #1.” 

Okay, so you’ve read this far.  Now what?

Well, you probably know we can’t possibly give you a useful answer in just a few hundred words.

If you REALLY want to know, you’ll need to dig in … and invest some time and money in getting up to speed.

It starts with getting your mind around the situation.

If guys like Ray Dalio are paying attention to the future of the dollar … maybe YOU should too.

When it comes to China and Russias attack in the dollar, we created a VERY affordable 48-minute video and two downloadable PDFs which many people have found helpful …

Click here for info about The Dollar Under Attack video and two related special reports.

The video features the opening presentation from our 2018 Investor Summit at Sea™ … which kicked off with two full days focused on the Future of Money and Wealth.

Not only has nothing changed since the original presentation, but the news continues to indicate things are picking up speed.

So it’s not surprising savvy investors like Ray Dalio are concerned and making contingency plans.

Perhaps you should too.  After all, better to be prepared and not have a dollar crisis than to have a dollar crisis and not be prepared.

Until next time … good investing!


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Creating Consistent Cashflow with Retail Real Estate

Most people in the real estate investing world tend to gravitate toward a specialty … a market about which they know ALL the ins and outs.

On our latest show, we’ll talk to someone who has made a particular market his bread and butter … the retail market.

Wait … isn’t retail dead? No!

In this episode we’ll talk with a 30-year veteran of the retail investment industry about WHY the retail market is still completely viable … and HOW you can get started in the wide world of retail.

In this episode of The Real Estate Guys™ show you’ll hear from:

  • Your seasoned host, Robert Helms
  • His senior co-host, Russell Gray
  • Retail investor and developer Michael Flight

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Why retail?

Michael Flight has been involved in shopping center development since 1986. His business, Concordia Realty has been adding value to shopping centers since 1990.

In his 30-year career, Michael has seen the retail industry change a lot. Change is one constant in the industry, he says.

Several decades ago, the Sears catalogue made a big splash and replaced the business of many local merchants. Today, Sears is going downhill quickly … due to the popularity of online shopping sites like Amazon.

But smart investors have found ways to make brick-and-mortar retail thrive.

Retail facilities have evolved from single-purpose buildings to multi-function facilities (think shopping malls with restaurants, entertainment, and a wide variety of stores).

Businesses like Amazon need space to store and fill orders … another place where real estate folks come in.

Michael calls his specialty “de-mall-ing” … that is, taking a struggling mall and changing out the tenants and revitalizing the complex for modern shoppers.

We’ll explore the nitty gritty of how to get into the retail market, but first, a few great reasons investors should consider retail as part of their investment strategy:

  • One of America’s favorite pastimes is shopping … in person. Although online shopping is increasing in popularity, it’s still only 10 percent of the retail market. And customers flock to big-box stores for necessities like clothes and shoes that are harder to buy online.
  • Investors don’t have to deal with two of the major problems of apartment investing … vacancy and turnover. Tenants typically sign long-term leases ranging from 5 to 40 years to very stable tenants. Michael says many tenants will be national brands who offer lots of equity and will advertise FOR you.
  • Low day-to-day involvement … tenants are responsible for their own maintenance and sometimes even build their own stores. With a triple-net lease, tenants are responsible for real estate taxes, insurance (both property and liability, plus the contents of their store), and maintenance, including common-area maintenance like plowing snow and maintaining lighting.

How does the retail market work?

What does it take to purchase a small shopping center? Michael says potential investors must answer a few questions first …

  • What’s the neighborhood like? Is the property located in a good location?
  • Is there an adequate local population to support retail stores?
  • Is there a good travel path? That is, is the center accessible to cars and located near homes and other businesses?

Once you’ve made sure those criteria are satisfied, you have to look at what kind of tenants are already there … and what kind of tenants you need.

Shopping centers should have an anchor tenant … a grocery store or drug store or other big brand that will draw customers to the shopping complex.

When you’re negotiating, anchor tenants often have a lot of power to negotiate terms. But if you have a really great location, that gives YOU more leverage.

And you have to make sure customers are going to come.

The threat from online retail is real, but that doesn’t mean brick-and-mortar retail stores are failing … it just means investors have to get creative.

That might mean integrating omni-channel options … warehouses that provide last-mile delivery and stores that offer online order pick-up, for example.

But the big question investors have to look at is how can we get more people here … and keep them here longer?

For example, don’t build a shopping center without integrating great places to eat and rest … you’ll get more customers who stick around, and a more successful investment.

Michael emphasizes that investors need to know about retail itself, from how retailers do business and which retailers sell what, to merchandising … putting the right tenants in the right spots.

That means making sure tenants are complimentary. Have a couple clothing stores? Make sure you look for a shoe store as well.

The fine details of retail investing

We asked Michael what he looks for when he is figuring out finances.

He said he wants the loan-to-square-foot amount to be $100 or less.

After that part is figured out, he does underwriting based on a 10-year lease.

Lenders range from big lenders to banks or private loans for turnaround situations.

“We really like to play in the 1 to 20 million dollar range,” says Michael. This puts him below big institutional facilities … but above the mom-and-pop shops.

How long does it usually take to rehab a distressed retail asset? Nothing ever goes as planned, Michael says, but three years is typical to execute a solid business plan.

Retail is a LOT different than single-family homes and apartment complexes, so we asked Michael to explain some of the big differences.

In retail, tenants typically get a retail improvement allowance.

Owners will offer a white box … drywall, drop ceilings, concrete floors, and bathrooms. They often offer an allowance to build out the store to the tenant’s specifications.

When tenants have very specific construction specifications, Michael says a good option is offering money or free rent so the tenant can deal with construction on their own.

Why should the investor pay for modifications to the retail space? It’s the standard … and investors want to draw in tenants that will stay for 5 or 10 years, or longer.

Remember, if you’re not ready yet to take on an entire shopping mall, working with a syndicator is always an excellent way to dip your toes into retail.

To dive into ALL the details, listen in for access to Michael’s special report on retail investing. He covers the HOW and WHY of retail real estate in depth.

Listen to experts!

You can’t fake 30 years of expertise.

Our mission is to find subject matter guides who know what they’re talking about and can educate our audience … YOU.

Michael Flight is a great example of someone who walks the talk. He is an expert in this area … and we hope your curiosity about the retail market has been piqued.

For more wisdom from experts, check out our Future of Money and Wealth video series … or meet some of the best minds in the investing world at our annual Summit at Sea™.


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


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Tariffs, Trade Wars, and Crash Talk with Jim Rogers and Peter Schiff

Freedom Fest is a crazy collection of different mindsets and ideas … and that’s why we make it a point to attend as often as we can.

In this episode of The Real Estate Guys™ show, we talk to two fellow Freedom Fest attendees about their thoughts on the economic and political realities of the world we live in.

These two guests have earned the right to have an opinion … and today, they’ll help us understand their thoughts on the bigger picture and how that picture affects YOUR investing business.

You’ll hear from:

  • Your thinking-ahead host, Robert Helms
  • His crashing co-host, Russell Gray
  • Legendary investor Jim Rogers
  • Finance pro Peter Schiff

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Why YOU need to understand the economy

Peter Schiff has taught us that economics and politics are intertwined. Policy effects the economy … and vice versa.

There’s a lot happening in the wider economic world that affects investors on Main Street. Realizing that has affected our decisions as The Guys … from the events we attend each year to the way we structure our annual Summit at Sea™.

Friends and mentors like today’s guests help us understand the economic systems at work in the U.S. and around the world … and how those systems affect what happens in the financial headlines.

Speaking of headlines, you won’t hear these gentlemen very often in mainstream financial media because they don’t fit the narrative the media wants to tell … which is that an upward trajectory can continue forever.

As we know, anything involving money follows a cycle of ups and downs … and we’re in the midst of the longest economic recovery EVER.

There’s no doubt that at some point, we WILL hit a downturn. But there is good news … those who prepare for impact can thrive, even during bad times.

Words of wisdom from Jim Rogers

Legendary investor Jim Rogers co-founded the Quantum Fund with George Soros.  

We were honored to talk to him about what it takes to be an investor in changing times.

“You have to be open to change,” says Jim. To anticipate future changes, you have to realize the world WILL change. And it takes work, he says.

So how can we prepare? “When everyone’s exuberant, you should be worried,” Jim notes. “That means they’re not thinking.”

(Hint, hint: consider the current market.)

Jim has written several books. His most recent is called A Gift to My Children.

Although Jim didn’t originally want kids, he found out he was wrong once he had his own children. These days, he is always thinking of what he wants to teach his kids.

That’s what the book is about … the lessons he has learned in investing and in life, for his kids … and yours.

We also asked Jim for his thoughts on cryptocurrencies. He said, “Blockchain is going to change everything we know.”

That means a lot of people being put out of business … but it will also CREATE a lot of new businesses. So don’t worry.

We can translate that same idea to the broader economic world. You’ve got to go through a downturn to get to an upturn.

Jim reminded us that the Chinese word for crisis, weiji, means both danger and opportunity.

Speaking of China … that’s where Jim lives. He decided to move to the other side of the world to make sure his children grew up speaking Mandarin … they’re now fluent.

“China’s going to become the next great country,” he says.

Peter Schiff offers a voice of reason

We also enjoyed chatting with financial guru Peter Schiff. He has attended every Freedom Fest except one … and that was because his child was due.

Before the ’08 financial crash, Peter was a voice of reason. He maintained that the economy wasn’t great … everyone just thought it was.

The booming economy pre-crash was based on a bubble of appreciation, consumption, and inflated prices. People were deceived because it seemed like good news was around every corner … so they weren’t prepared for the bubble to pop.

As opposed to the bubble in ’08, our current bubble hasn’t provided boosts to the large majority of people, says Peter. We’ve just barely reached pre-recession levels.

So, why do these economic bubbles happen? It’s a result of what Peter calls “stag-flation” … stagnation PLUS inflation.

Subscribers to Keynesian economics believe unemployment causes inflation, so the idea that employment AND inflation could rise at the same time seemed impossible.

But inflation is caused by an expanding money supply, not expanding prices.

And the thing that keeps prices in check is the supply of products. Having a lot of stuff bolsters a strong economy and keeps a lid on pricing.

Scarcity is what leads to high prices.

Inflation in the 1960s happened because of policies from earlier decades, says Peter … high spending, high levels of borrowing, and the government’s decision to go off the gold standard.

According to Peter, today’s monetary policy is MUCH WORSE than anything that happened in the 60s and 70s.

And our economy is less secure … so we can’t just raise interest rates when things get bad.

Everybody is exposed, says Peter … because everyone has more debt and interest rate risk than ever before.

The Fed doesn’t want to think massive inflation is possible. “But it’s the problem you don’t see coming that gets you,” Peter notes.

The next crisis “will be bigger and will be worse.”

Peter talks tariffs and trade wars

People are excited about tariffs on China … but they shouldn’t be, according to Peter. “We derive the most short-term benefit from trade,” he says. “We have the most to lose.”

The problem is not the federal deficit … it’s the economy. When deficits pile up, we destroy our wealth, and right now we have HUGE trade deficits because of our fiscal policy.

We also have tax and regulatory codes that make American businesses less competitive.

But trade deficits offer us two BIG benefits.

First, we are getting a ton of REAL products … and it costs us nothing, because we can produce or borrow those dollars out of thin air.

Second, when the Chinese recycle those dollars, they buy U.S. treasury bonds.

So trade deficits mean prices are lower and interest rates are lower.

If Trump is successful on tariffs, Americans will have higher prices, higher interest rates … and a lower standard of living.

Tariffs “will make us the losers in the short term,” says Peter. They’ll also exacerbate any recession that happens.

We talked with Peter about one more thing … why investors should consider gold and international assets.

When we spoke, gold and silver prices were down. “That’s the flip side of optimism,” Peter says. “Optimism is not buying gold, because people usually buy gold when they’re worried, and people aren’t worried right now.”

“When no one is worried is when YOU should be worried,” Peter says.

Gold is more valuable now than it was in 2011, says Peter … but it’s also cheaper.

He told us there’s tremendous potential in gold mining stocks, as well as international assets.

Investors should look for where money will go when it flees the U.S. … and try to invest there before the economy crashes and there’s a stampede.

Remember, you can make 10 times the amount you invest … but you can never lose 10 times the amount. You can only lose what you put in.

For more from Peter, check out the Peter Schiff Podcast.

Get educated

Peter and Jim have a different way of looking at the world … and that’s a good thing.

If you’re learning some of their concepts for the first time, we wouldn’t be surprised if you’re a bit lost. That’s okay.

We encourage you to keep seeking out knowledge and multiple perspectives … so you can make informed decisions and be prepared for the future.

One great resource to consider is our Future of Money and Wealth video series.

We realized our conference speakers had a WEALTH of information to offer … so we decided to share it with YOU. This video series is great for beginners and long-time investors alike.

Remember … you can’t take effective action without education!


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Robert Kiyosaki on the Financial System, Fake Teachers and Real Assets

This summer, we spent time at events like Freedom Fest and the Red Pill Expo … where we bumped into some of our mentors and friends … folks like Peter Schiff and Robert Kiyosaki.

It’s not by accident we keep running into the same people. These folks all have the same desire … to read between the lines and find the TRUTH about what’s really happening in the world. And they don’t jump to conclusions.

Robert Kiyosaki has helped us see both sides of the story for decades. This time around we chat with him about his views on the financial system, fake teachers, and the importance of real assets.

In this episode of The Real Estate Guys™ show you’ll hear from:

  • Your very real host, Robert Helms
  • His faking-it co-host, Russell Gray
  • Best-selling financial author Robert Kiyosaki

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Get a REAL education

We spoke with Robert Kiyosaki at Freedom Fest. “I come to learn,” he says.

Freedom Fest and similar events … like the New Orleans Investment Conference are like a mental gym. “They challenge the way I think,” says Robert.

That’s one reason educational events are so important (like our Future of Money and Wealth webinar series, which features talks by Robert and many more financial gurus).

REAL education is more than just listening to the salespeople. It’s getting outside your cocoon and seeking out new information.

Invest in your PASSION

One idea Robert thinks is really essential in the investing business is to invest in what you love and enjoy. “I do think real estate is the best,” says Robert … that’s why it has been his bread and butter for years.

But maybe avocadoes are your passion … in that case, perhaps you should consider investing in an avocado farm.

You should always do your due diligence and work with a good financial planner … but investing in your PASSION will always be more successful than investing in something you’re “meh” about.

REAL assets, REAL money, and REAL teachers

“We don’t have a prayer as long as we’re working for money,” says Robert. He believes investors should steer away from money … in favor of REAL assets.

Investors should also surround themselves with REAL professionals … those who’ve done their research and know what they’re talking about.

A lot of people are in trouble because they’re learning from FAKE teachers, says Robert … people who don’t have a real conception of cash flow.

Two other things investors should be aware of … FAKE money and FAKE assets.

Be wary of a monetary system that isn’t backed up (by gold, for example), and don’t rely on traditional assets, Robert advises.

If you’re doing everything “right” … working a 9-to-5 job, putting money in your 401k, investing in stocks … you’re being screwed by the system, says Robert.

SMART investors have to learn to work WITH the system.

For more on FAKE versus REAL, check out Robert’s upcoming book FAKE, which will be released as an entirely digital series.

REAL talk about our financial system

Central banks control paper money … and that’s dangerous, says Robert. He cites people like Jim Rogers, who believes we’re headed for the worst crash yet because we have an abundance of printed money and debt.

“Tragedy follows printing money,” says Robert.

But it doesn’t matter how bad the system is … what matters is the actions YOU take. We like to say BE the Fed … don’t BEAT the Fed.

That means figuring out how to make the most of our financial system … knowing the tax laws and figuring out how to make them work for you.

“The next collapse will look like something we’ve never seen before,” says Robert.

But investors don’t have to be scared … if they prepare for the inevitable BEFORE it happens.

We talked with Robert about digital currencies, like Bitcoin. “Gold and silver were here before us and will be here forever,” says Robert.

But investors need to look at real assets (like property and gold), cybercurrency, AND paper money when they’re investing … because they’re the three big components of our current monetary system.

Smart investors work to figure out what is real and lasting.

For more from Robert Kiyosaki, read the classic book Rich Dad Poor Dad … if you haven’t already. And check out the Rich Dad Radio Show.

A REAL financial expert

Robert has been studying the financial system forever. He remembers the history of money and has watched the financial system change.

As we often say, “Those who fail to remember history are doomed to repeat it.”

You HAVE to understand financial fundamentals and the structure of our financial system before you can read the news and really SEE between the lines.

Like Robert says, a crash is highly likely … we can’t predict WHEN it will happen, but we CAN hedge against the eventuality of it.

Get educated … so you can stay on top of the wave when the tsunami comes.


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Cover Your Assets Part 2 – International Structures for Extreme Protection

We live in a big world … one that offers benefits to those willing to step outside of their comfort zones.

In Part 1 of Cover Your Assets, we discussed domestic structures that can isolate and protect your assets in the case of legal trouble.

In Part 2, we’ll look at the bigger picture of asset protection.

We’ll discuss international asset protection structures and long-term wealth protection strategies … and we’ll also talk about what investors can do to protect their privacy and take advantage of tax laws.

It might sound complicated … but luckily, our guest Kevin Day is an expert in offshore asset protection and came on the show to simplify the topic for us.

In this episode of The Real Estate Guys™ show you’ll hear from:

  • Your world-traveling host, Robert Helms
  • His channel-surfing co-host, Russell Gray
  • Best-selling author and lawyer Kevin Day

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Trusts 101

Kevin sat down to chat with us in breezy Belize.

He points out that U.S.-based investors have to be on their A game … because in this country of extreme litigation, “A lawsuit is equivalent to a lottery ticket” … for the person suing YOU.

One way to protect your wealth from lawsuits? Trusts.

Kevin took us through a brief history of trusts in the U.S.

Trusts were formerly designed solely to transfer wealth from one person to another. Revocable trusts were invented in the 1930s to allow people to set up a way to transfer their estates … and make tweaks to the structure along the way.

It wasn’t until the 1980s that the U.S. allowed people to name themselves as the beneficiary of a trust for the first time.

These trusts allow you to segregate your assets … so you still have a decent lifestyle and you can reduce your liability.

“It’s a way to firewall the various parts of your life,” says Kevin.

Trusts are unique because they don’t have an owner … they exist independently from you. That’s why their lawsuit proof, says Kevin.

If you set up legal structures, including trusts, while the seas are calm, you’ll be able to handle the lightning when it comes.

And once you go through the process, you can pay more attention to MAKING money than PROTECTING your money.

Getting started

Although setting up trusts can seem tricky, it isn’t that overwhelming if you take it step by step. Investors should get started early.

Most lawyers don’t teach clients about inter-entity planning … but when Kevin gets new clients, he takes them through a step-by-step process to help them protect their assets.

Kevin starts by completing a liability assessment to see how much liability the investor holds.

He looks at what protections that investor already has in place. This includes projecting the investor’s future plans to develop a streamlined structure. Assets are divided into three categories:

  1. Zero-liability assets, like your cash portfolio.
  2. High-liability assets; for example, a company that has employees or uses third-party providers
  3. Assets that are in between, like real estate … high-value, high-liability assets are included here.

He uses these three categories to see how exposed clients are. He then checks to see whether investors are holding the proper insurance … usually a moderate amount.

After that, he works with the client to set up the appropriate structures that will provide the most protection in the simplest way.

Are you an investor wanting to get started with a trust? Kevin suggests building up to an offshore trust by setting up a domestic trust with decanting provisions that will allow it to move offshore gracefully.

The WHEN and WHY of international trusts

We asked Kevin when it was appropriate for investors to consider offshore trust options.

He told us that investors with a net estate of over more than 4 million … and that includes their home, business, and rentals … should absolutely set up offshore options.

That’s the point where all your creature comforts are taken care of and any extra money you’re taking in goes toward growing your real estate business.

Under 2 million, an offshore trust is not appropriate, simply because of the cost-to-benefit ratio.

Between that 2 and 4 million mark is where there’s some leeway. If you have a high-liability business, you probably shouldn’t go international. But if you’ve just hit a home run and you’re growing exponentially, then you should consider an offshore account.

Offshore options allow investors to lower their profile in case of a lawsuit, says Kevin. Lawsuits feel like blackmail … and what you look like from a public view will change the lawyer’s perspective.

Trusts can help you manage privacy concerns about how much of your wealth shows up on the public record.

Why is this so important? If you’re sued, there’s a discovery period where the other attorney can look at your assets.

Eighty percent of the time, says Kevin, those attorneys don’t look into how your assets are structured … and the other 20 percent of the time, they see international structures and think getting that money is more trouble than it’s worth.

Worry less with offshore trusts

Kevin says investors have three things to worry about:

  1. Taxation
  2. Privacy
  3. Asset protection

According to him, the great thing is that trusts help in all three areas.

Lawsuit protection trusts are tax neutral … and don’t rely on keeping secrets from the IRS. They also offer complete bars to anyone who wants access to your money.

What if you own property offshore? Americans who own foreign companies don’t have to pay tax until their income is repatriated. Setting up your income to be non-subpart F can be very easy, says Kevin … with the right professional help.

There’s no point in building up your assets without also protecting them so you don’t lose everything when disaster strikes.

Exploring your opportunities for asset protection means looking at offshore options.

So much real estate education is fun and aspirational. Asset protection is a down-and-dirty topic … but it’s SO important.

Being a real estate investor means dealing with real threats and the possibility of bad deals and mistakes. It’s essential to discuss what could go wrong … while everything is still going right.

That’s why we’re so glad to have an expert in offshore protection in our fold! We want YOU to know your options for asset protection so that if the lightning hits, you can have one piece of your business fail without everything else falling apart.


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