Chaos and Opportunity in the New Decade

We’re entering a new decade full speed ahead! But we have to be on the lookout for investment landmines. 

Problems and instability are nothing new … every generation must face them. That’s why we are discussing chaos and opportunity. 

We sat down with Dr. Chris Martenson from Peak Prosperity to take a look at what’s going on at the ever-so-important Federal Reserve … and what it means for real estate investors like YOU. 

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

  • Your reserved host, Robert Helms
  • His fed-up co-host, Russell Gray
  • Co-founder of Peak Prosperity, Dr. Chris Martenson

Listen


Subscribe

Broadcasting since 1997 with over 300 episodes on iTunes!

real estate podcast on itunesSubscribe on Androidyoutube_subscribe_button__2014__by_just_browsiing-d7qkda4

 

 


Review

When you give us a positive review on iTunes you help us continue to bring you high caliber guests and attract new listeners. It’s easy and takes just a minute! (Don’t know how? Follow these instructions).

Thanks!


Finding the flipside of chaos

We’re facing a brand new decade … and it’s a great time to be alive!

But there’s also turmoil and chaos and opportunity. How do we make sense of any of it?

As real estate investors, we operate in a system … and that system is a financial system. It’s also a political system … and some of it is mechanical while some is emotional. 

The system is affected by how people are responding to what’s going on in the world … namely the instability of the financial system. 

Statistically, a recession should be hitting the United States of America at any time. 

There’s record debt around the world. The Fed is doing things it has never done before … and at a scale that has never been done before. There is also geopolitical unrest that affects the economy. 

Even the lowliest main street real estate investors need to pay attention because these things can affect credit markets and interest rates … two things real estate investors rely on. 

But anytime there is chaos, you get the flipside … and the flipside is opportunity. 

Printing money like crazy

Dr. Chris Martenson is a PhD. He’s a scientist … and really just a brilliant guy. 

As the co-founder of Peak Prosperity, Chris makes the point that you can’t continue to base your decisions on a never-ending increase when we live on a planet of finite resources. 

“It’s going to be an interesting year,” Chris says. 

Our world today is a world of buy-in for the central bankers. They got themselves into a lot of trouble with the bubble back in 2000, and they bailed themselves out. 

That gave us the housing bubble … which, of course, blew up. 

We got back down to 0% rates … but this time it was globally coordinated. All the central bankers had this emergency … but it never went away. 

There was a little dip in stock prices in 2011, and that scared them again. So … more money was printed. 

Then there was a little emergency in 2013 because stocks were going to go down again and … oops … more printing.

Most people aren’t aware of this, but the largest printing in the series took place in 2016 and 2017 … they were still printing at an emergency level. 

That leaves people like Chris asking, “What’s the emergency?”

The emergency seems to be that the central banks never want to let markets move backward … which naturally they do and then move forward again. 

The result is constant inflation … an amazing amount of money printing … and not just US dollars. Virtually, all the central banks are printing like crazy. 

When the Federal Reserve was established in 1913, it was established by an act of Congress. 

It’s not a federal institution, even though it’s called the Federal Reserve. It is a private banking cartel that has a government-sponsored entity. 

Similar to Fannie Mae or Freddie Mac … you wonder, is it the government or is it private? And it’s kind of both. 

The issue is that the Federal Reserve is now directly monetizing US government debt. Our central bank is directly monetizing debt, and nobody’s talking about. 

The question we have to ask ourselves as investors is why? Why does the Fed feel like it has to be buying what amounts to 40% of all new government debt coming hot off the presses?

We’re being told that markets are stable, stocks are rising, and that the bond markets are quiet. But that’s not the story underneath it all. 

The Fed is eventually not going to be able to do enough to keep things afloat … but it’s inflate or die. That’s what the Fed is afraid of. 

What can you do?

As real estate investors, our product is based on the ability to borrow. 

Certainly, you can buy real estate free and clear … but the fact that you can leverage real estate is one of its biggest attractions. 

Now, nobody knows how much things are actually worth, which makes it difficult to plan and make wise decisions. 

How do you protect yourself?

“Get out of that paper money game, and make sure you’re really tight on the hard assets game,” Chris says. 

You can also make sure your cash flows are good and that you have a bit of a buffer … don’t ride things out on the edge. 

Buy in prime places only. Now isn’t the time to take a chance on a strip mall far from the city center. 

You can’t do much about what your nation intends to do about growing its debts faster than its income … but you can personally understand that those actions are going to impact you at some point. 

Develop multiple income streams. You don’t want to be that person who has only got a single paycheck. 

And don’t forget about social capital. Your relationships can really be an asset for you in tough times. 

By doing so, you can prepare yourself to be in a better position when chaos comes … and be ready to take advantage of the opportunities that come with it. 

For more ideas from Dr. Chris Martenson … listen in to our 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: Chaos and Opportunity in the New Decade

The investing landscape looks laced with landmines as we enter the new decade. Although problems and instability are nothing new, each generation faces their own variation.

In this episode, we visit with Dr. Chris Martenson from Peak Prosperity to take a look at the under-reported but extraordinarily significant activities of the Federal Reserve … and what it might mean to real estate investors.

So listen in as we discuss chaos and opportunity in the new decade with Dr. Chris Martenson.


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!

The world’s out of control …

The second decade of the last century are known as The Roaring Twenties.

Good times were fueled by abundant currency from the newly formed Federal Reserve … and the resulting debt and speculation which ran rampant.

As you may know, it ended badly.

The Great Depression ensued … an event which ruined lives, fundamentally changed the United States government, and took decades to recover from.

Today, we’re on the threshold of the second decade of this century.

And once again, the United States is “enjoying” a Fed-fueled party of absurd debt and speculation.

Will it end badly this time?

Or will the lessons learned from the 1929 and 2008 debacles provide the necessary wisdom to ride the free money wave without an epic wipe out?

No one knows.

But as we say often, better to be prepared for a crisis and not have one … than to have a crisis and not be prepared.

Last time,  we discussed some of the gauges we’re watching on the financial system dashboard such as gold, oil, debt, the Fed’s balance sheet, bonds, and interest rates.

But of course, we can’t control any of these things.

That’s why we think it’s very important to control those things you CAN control … so you’re better positioned to navigate the things you can’t.

Fortunately, real estate is an investment vehicle which is MUCH easier to control than the paper assets trading in the Wall Street casinos.

And if history repeats itself, as Main Street investors who are riding the Wall Street roller coasters get spooked … many will come “home” to the Merry-Go-Round of real estate.

For those of us already there, this migration of money creates both opportunities and problems.

Like any investment, when lots of new money floods in, it lifts asset prices.

While this generates equity, unless you sell or cash-out refinance, your wealth is only on paper. And equity is fickle. Cash flow is resilient wealth.

Meanwhile, when prices rise higher than incomes, finding real deals that cash flow is much harder. We’re already seeing it happen.

The key is to move up to product types and price points where small, inexperienced investors can’t play.

Of course, this takes more money and credit than many individual investors have. That’s a problem, but also an opportunity.

Another strategy is to move to more affordable, but growing markets.

This also takes an investment of time and money into research, exploration, due diligence, and long-distance relationship building … unless you happen to live in such a market.

So once again, this is better done at scale … because the time and expense of long-distance investing is hard to amortize into one or two small deals.

Bigger is better.

It’s for these reasons, and many more, we’re huge fans of syndication

Syndication allows both active and passive real estate investors to leverage each other to access opportunities and scale neither could achieve on their own.

But whether you decide syndication is a viable strategy for you …

… to take more control going into what history may dub “The Tumultuous Twenties” …

… it’s important to have a game plan for developing both yourself and your portfolio.

So here’s a simple process to take control of your investing life, business and portfolio heading into a new decade …

Step 1: Cultivate positive energy

It takes a lot of energy to change direction and compress time frames.

Building real wealth with control requires learning new things, taking on new responsibilities, and building better relationships.

So it’s important to put good things into your mind and body …

… be diligent to put yourself in positive environments and relationships, while limiting exposure to negative ones …

… and stay intentional about focusing your thoughts and feelings.

That’s because what you think, how you feel, and what you believe all affect your decisions and actions. And what you do directly impacts the results you produce.

Improving results starts with a healthy body, mind, and spirit. More positive energy allows you to pack more productivity into every minute of the day.

Step 2: Establish productive structure

This also takes effort. That’s why we start with cultivating energy. But being effective isn’t just about expending energy.

There’s a big difference between an explosion and propulsion.

Structure helps focus your energy to propel you to and through your goals.

Structure starts with getting control of your schedule. Time is your most precious resource … and you can’t make more of it.

But structure also includes your spaces … your home, office … even your vehicles and devices. They should be organized to keep you focused and efficient at your chosen tasks.

Yes, you can and should delegate to get more done faster.

But even if delegation is your only work (it’s not … learning, monitoring and leading your team, making decisions … those stay on your plate) …

… you’ll need spaces conducive to focus, with access to resources and information, so you can organize and delegate effectively.

Then there’s legal, financial, accounting, and reporting structures.

Once again, all these take time and energy to get together. So start by cultivating energy and taking control of your schedule.

Step 3: Set clear, compelling goals with supporting strategies and tactics.

You might think this comes first, and perhaps it does.

However, you can cultivate energy and establish fundamental structure as a universal foundation for just about any goals.

But whenever you choose to do your goal setting, it’s important to establish a very clear and compelling mission, vision, set of values, and specific goals for yourself, your team, and your portfolio.

This clarity will help you more quickly decide what and who should be in your life and plans … and what and who shouldn’t.

When you have clarity of vision, strategy and tactics become evident.

Step 4: Act relentlessly

We think it’s important to “keep your shoulder to the boulder” … otherwise it rolls you back down the hill that you’re working so hard to climb.

Fortunately, as you use your newfound energy and structure to act relentlessly towards your goals, you’ll eventually enjoy the momentum of good habits.

Lastly, be aware that this is a circular process … not a linear one.

You’ll keep doing it over and over and over. That’s why having an annual goal setting retreat is an important time commitment on your calendar.

We don’t know if the 2020s will be terrible or terrific at the macro level.

But history says those at the micro level who prosper in good times and bad are those who are aware, prepared, decisive, and able to execute as challenges and opportunities unfold.

Those are all things each of us can control.

Top Real Estate Trends for 2020

Well, hello … 2020! 

It’s a new year and a new decade … and it’s a TERRIFIC time to talk about the top trends in real estate investing. 

Many factors are affecting the path real estate is heading down this year … demographics, economics, technology, politics, energy, and interest rates. 

So sit back and take note … these are the top trends in real estate in 2020. 

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

  • Your trending host, Robert Helms
  • His trendy co-host, Russell Gray

Listen


Subscribe

Broadcasting since 1997 with over 300 episodes on iTunes!

real estate podcast on itunesSubscribe on Androidyoutube_subscribe_button__2014__by_just_browsiing-d7qkda4

 

 


Review

When you give us a positive review on iTunes you help us continue to bring you high caliber guests and attract new listeners. It’s easy and takes just a minute! (Don’t know how? Follow these instructions).

Thanks!


Trends in single family homes

Today we’re going to focus on some of the top trends that experts are predicting for 2020 in real estate. 

Real estate markets are diverse and always changing. On the demand side, the way that people interact and use real estate is essentially the same … but nuances change and create opportunities for investors. 

On the supply side … we have whatever we have built at this moment and the plans that developers and builders have to put more inventory into the ground. 

When it comes to real estate, you’re always looking at supply and demand and the flow of people and money. 

Let’s start with Realtor.com and its housing market predictions for 2020. Remember that these predictions have to do with single family homes. 

The National Association of Realtors is calling a 4.8 percent growth in home prices and a 1.8 percent decrease in existing home sales. 

That’s a modest growth in price and less sales for a variety of reasons. 

If we stopped right there, you might say that it doesn’t sound like a great real estate market to be in … BUT we’re not stopping there. 

To us, these predictions mean that most of the opportunities are going to come in niches .. and we’ll dive into that later. 

But keeping with the big picture, nobody is predicting a huge rise in interest rates … they’ll probably stay consistent. And overall, mortgage rates will remain low. 

That’s good for a couple of reasons. 

Obviously, to acquire property with leverage, you’d like to see a low interest rate. And if you already have a property with higher interest rates, your properties have better profiles today. 

The National Association of Realtors (NAR) also ranks markets that they see as having a potential increase in growth … both in sales and in price. 

The number one market that they chose only has 0.3 percent growth in sales projected … but 8.1 percent projected in price growth. 

That market is Boise, Idaho. 

Other markets that made the top 10 include Tucson, Arizona; Columbia, South Carolina; Colorado Springs, Colorado; and Memphis, Tennessee. 

Along with growing markets, the NAR predicts which markets will decline in both sales prices and number of sales. 

Those markets include Chicago, Dallas, Las Vegas, Miami, and San Francisco. 

The NAR said that the offset of the decrease in demand in some areas is that there will be new housing starts. 

In fact, according to Fannie Mae’s economic and strategic research group, new home starts will jump from a 1 percent increase in 2019 to nearly 10 percent in 2020. 

Niches that make sense

One trend that we have been talking about for some time is senior housing. 

The demographics are undeniable … look at how powerful the baby boomer generation is moving through all phases of their economic life … and now they’re entering their senior season. 

Anything related to seniors is going to probably be pretty solid for the next couple of decades. 

You hit a season of life where you need some special assistance and accommodations. 

There are lots of places to play … from the 55 and older communities to assisted living and residential assisted living to skilled nursing and memory care facilities. 

There is demand here that will be exceeding supply … and you don’t have to be a rocket scientist to recognize the signs. 

The next niche has some overlap when it comes to seniors … and that’s multifamily.

Multifamily has been huge in terms of demand for many years, and that’s been both good and bad … the bad part is that we’ve had a lot of money chasing a particular set of increasing assets. 

There has been a demand for multifamily on the tenant side and on the investor side … and on the investor side, the demand has meant a decrease in return. 

For 2020, we anticipate growth to be in the niches within multifamily .. like 55 and over apartment campuses or millennials looking for micro apartments. 

Micro apartments are small apartments that cater to younger tenants … usually fairly affordable … in city centers with unique amenities like shared workspaces. 

Another great trend … and one of our favorite niches … is resort property. 

This is a wide niche … but we tend to like the higher end as opposed to spring break on the cheap. 

It’s hard to go out and buy a 400 room hotel … but there are other ways that people are investing in resort properties. 

Some will allow you to own an individual unit that operates as part of a big resort or a hotel. There’s also the segment of vacation rentals in condos or single family homes. 

Not your cup of tea? Maybe take a look at agriculture instead. 

There are so many opportunities to come alongside successful operators in this space and invest offshore. 

The great thing about agriculture is that the underlying industry is probably not going anywhere … every human and animal needs to eat. 

The population is growing … and we are going to need more food. 

Take care with trends

Looking for real estate investment trends can reveal great opportunities. 

The only caveat … and this is true of any property that is use or trend specific … is that if that trend or use changes, it can be hard to repurpose. 

Anytime you are investing in a trend, you want to make sure it’s a trend that has some longevity to it. 

And remember that anytime a niche gets hot … it gets CROWDED. So, the earlier you adopt it, the better. 

For on 2020 real estate trends … 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!

Getting Off to a Great Start in the New Year

The start of a brand-new year is a great time to reflect on lessons learned and make bold plans for the future. 

It doesn’t matter if you’re just starting out or starting over … the possibilities are endless!

We’re sharing practical tips for getting off to a great start in this new year … and new decade. 

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

  • Your practical host, Robert Helms
  • His practical joker co-host, Russell Gray

Listen


Subscribe

Broadcasting since 1997 with over 300 episodes on iTunes!

real estate podcast on itunesSubscribe on Androidyoutube_subscribe_button__2014__by_just_browsiing-d7qkda4

 

 


Review

When you give us a positive review on iTunes you help us continue to bring you high caliber guests and attract new listeners. It’s easy and takes just a minute! (Don’t know how? Follow these instructions).

Thanks!


Vision, Mission, and Values

For our last show of the decade, we’re going to talk about how you can gear up and prosper in a brand-new year. 

When you have clarity of vision, strategy and tactics become evident. 

We all want to know how to make money in real estate … but sometimes the true vision isn’t that clear. 

It’s a great time in history to be thinking about clarity of vision because we’re entering 2020 … and we all want to see with 2020 vision. 

So, today we are talking about how you can figure out how to go from where you are to where you want to go. It starts with getting a vision in your mind of what success looks like for you. 

Anytime we have a challenge or an uncertainty, we sit down and ask ourselves … what is the vision? What are we trying to accomplish? What is the why?

You only have so much. You only have so much energy. You only have so many resources. You only have so much focus … so you need to know what to say yes to AND what to say no to. 

If you can get a clear vision … and articulate that vision to other people … then everyone knows what they need to do without micromanaging. 

On the other hand … if you lay the ladder of success against the wrong building, you’re going to get to the top, look around, and realize you are in the wrong place. 

Your vision isn’t peripheral to your investing … It’s fundamental. It’s the foundation of everything you do. 

Vision, mission, and values are three different things … but together they can really chart your course. 

As we said before, vision is what success looks like in very clear terms. Mission isn’t about what success looks like … it’s the why behind what you do. 

Mission is the reason what you are doing matters. 

The best missions … in our experience … are those that are about making a difference for the better. 

This could be with your community, or for a spouse, for your children, for your friends, for your employees … if you get up every day and are motivated to support someone else and make the world better … that’s a mission. 

Values are really about the methodologies … what you’re willing to do and what you are not willing to do. 

A great exercise is to sit down and come up with the six top values in your life … the things that really matter to you in life. 

Stephen Covey says that highly effective people begin with the end in mind … all of these things help you do that. 

Today, we’re going to give you some tools that you can use to actually get to where you want to go. 

Start, Stop, Continue

One of our favorite tools is what we call Start, Stop, Continue. 

Simply put … at the end of the year, you step back and look at the year and see everything you’ve done and ask, “What are the things that I should continue doing?”

This could be a particular area, market, or partner that has served you well. 

Then, you have to ask, “What are the things that I need to stop?” Maybe it’s the way you spend your time or a personal or business partnership. Maybe it’s a market that you need to get out of. 

After you have decided what will continue and what will stop, it’s time to ask, “What should I start doing?”

These could be new habits, new beliefs, new partnerships, new markets, new product types, new activities, or new people.

This is an exercise that requires you take time, sit down, and confront the brutal facts. 

There may be things you are doing every week that aren’t serving you well … and these aren’t necessarily bad things. 

Sometimes you have to say no to the good in order to say yes to the great. 

If you’re busy … like most successful people are … you don’t have a lot of extra time. So, you have to make room in your schedule either through delegation or by removing items from your docket. 

You can’t really create more time … but you can leverage time. 

Once you have determined how to bring more good energy into your life, you need to create a productive structure to get it done. 

Then, you establish clear goals, strategies, and action plans because you can allocate them into the structure. 

Zero-based Thinking 

The next tool in our arsenal is something we learned from Brian Tracy many years ago. It’s called zero-based thinking. 

The question you ask yourself is, “Knowing what I know now, what would I do differently?”

Knowing what I know now would I get into this relationship? Knowing what I know now would I get into this particular deal? Knowing what I know now would I get into this marketplace?

And if the answer to any of those things is “no,” now is the time to change your course. 

Maybe your accountant isn’t that great … but they’ve been your accountant for so long you just haven’t ever really considered leaving. Now may be the time. 

Sometimes what you find yourself looking at is a personal relationship. If there are people in your life that don’t affect you in a positive way, it’s time to cut ties. 

Zero-based thinking only works if you are willing to be brutally honest with yourself. You have to admit your mistakes. 

But if you can, you can set yourself up for your best year yet. 

For more tools for getting off to a great start … 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: Top Real Estate Trends for 2020

Turning the page to a new year and a new decade is a terrific time to talk about some of the top trends in real estate investing.

Demographics, economics, technology, politics, energy and interest rates are all key factors affecting the trajectory of real estate heading into the 2020s.

So listen in as The Real Estate Guys™ talk top trends in real estate for 2020!


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: Getting Off to a Great Start in the New Year

Whether starting out or starting over, a brand-new year is a great time to reflect on the lessons learned in the past … and to make bold plans for the future.

In this episode, the Guys discuss practical tips for getting off to a great start in the new decade.


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!

High performance wisdom for the New Year …

Sometimes the most profound tidbits of wisdom are unexpectedly found in unlikely places.

Here’s a great one we picked up along the way …

“Most people figure it out … eventually.  The GREAT ones figure it out EARLY.”

We heard this during a casual conversation in the bleachers at a small college football game.  The subject was athletes, but it really applies to any endeavor … including real estate investing.

Most of us want to be great.  We want substantial success by whatever criteria we define it.  And we usually want it quickly … which brings us to our next profundity …

“More sooner is better.”

It all SEEMS so obvious.  But too often we find ourselves distracted and delayed with half-started projects, trivial pursuits; urgent, but unimportant tasks.

Meanwhile, minute by minute life speeds by … and we fall further behind.

But over time, we become more productive.  Through trial, error and pain we slowly learn to focus.  We gain skills and get more organized.  We learn when to say yes and when to say no … eventually.

But … the GREAT ones figure it out EARLY.

And when it comes to skills, organization, wisdom, discipline, and all the results those bring … more sooner is better.

Of course, this applies to ALL of life … including the business of real estate investing … so let’s think about HOW we can “figure it out” faster.

First, no matter how old you are, today is as young as you’ll ever be.  And no matter how young you are, it almost always seems life is too short.

So using today as ground zero, the goal is to figure it out early … and gain more (knowledge, wisdom, relationships, assets, cash flow, etc.) sooner.

Another lesson from athletics is learning to slow down and relax in order to go faster.

If you’ve ever been trained to sprint … or watched a slow-motion video of a world-class sprinter … you’ll see they’re very focused, relaxed, fluid … with no wasted motion.

Amateurs are tight … they try too hard … they’re inefficient … and they waste a lot of energy.  They work harder to go slower.

Sound familiar?  Sometimes the busiest people are the least productive.

Now here’s the next paradigm breaker … direct from furry green lips of Master Yoda in The Last Jedi 

“The greatest teacher, failure is.”

Of course, this doesn’t mean we seek failure.  Or does it?

While we don’t set out to do something intending to fail, whenever we attempt something we always run the RISK of failure.

So occasional failure is inevitable … especially when doing something new.

But just as you don’t have to save money in order to invest, because you can syndicate capital from people who’ve already saved it …

… you can syndicate wisdom from people who’ve already failed and gotten the lessons.

Or, as Bob Helms, the Godfather of real estate says …

“You don’t have to give natural childbirth to ideas.  You can adopt!”

 So we don’t seek out failure, but it’s not bad to seek out failures … people who’ve already failed and gained valuable wisdom through the process.

The key is to find the right people … and then get close enough to learn from them … and it’s about MUCH more than simply information.

It’s about culture.  It’s about the environment you’re in … the peer group you’re a part of … the ideas, attitudes, and opportunities you’re consistently exposed to.

As the new year rapidly approaches and you consider how to “figure it out” faster in 2018 … so you can get more sooner … take a strong look at your environment.

Do you have enough exposure to people who are pushing themselves through failure and are striving diligently to figure it out faster?

Are you as focused as you need to be to avoid resource-wasting distractions?

And perhaps most importantly, do you have a healthy attitude about your own failures … or do you let setbacks put you on the sideline too long?

Here’s more wisdom from brilliant minds … 

“Winners are not afraid of losing. But losers are. Failure is part of the process of success. People who avoid failure also avoid success.” – Robert Kiyosaki 

“I never see failure as failure, but only as a learning experience.” – Tom Hopkins

(By the way, both Robert and Tom will be with us again for our next sensational Investor Summit at Sea™)

Every year, in every economy, people find a way to win … and others find a way to lose.

And if both can happen in the same conditions, then the difference must be in how each individual behaves in the same environment.

Most of us are somewhere in the middle of the pack in whatever we’re working on … some folks are ahead of us, and some are behind.

In a marathon, each runner has to run their own race … but smart ones use the power of the pack to pick up the pace and pull them forward.  Sometimes it’s uncomfortable.

Of course, if it were easy then everyone would do it, and the achievement would be unremarkable.

“What is the point of being alive if you don’t at least try to do something remarkable?” – John Green

We hope you’ve had a successful 2017 and are eagerly looking forward to a remarkable 2018.

We appreciate having you in our audience and hope to see you very soon at a live event.

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.

Cash flow controls while equity happens …

As the end of 2017 approaches, it’s a great time to reflect on the past year as we prepare for the new year ahead.

In this case, we thought it might be fun to look back an entire decade … and consider where things were in 2007 and where we are today.

Way back in 2007, the world was slowly sliding towards the greatest financial crisis in most people’s lifetimes.  We just didn’t know it.

And who could blame us?

After all, the world’s most powerful banker at the time … the wise and powerful Ben Bernanke, then-Chairman of the Federal Reserve Bank of the United States …  gave a reassuring speech on May 17, 2007 …

“… we believe the effect of the troubles in the subprime sector on the broader housing marketing will likely be limited, and we do not expect significant spillovers from the subprime market to the rest of the economy or financial system.”

Of course, today we know the economy went over the cliff less than a year later.

So now, it’s 10 years later and where are we at?

According to this Bloomberg article …

Home Prices in 20 U.S. Cities Rise by Most Since Mid-2014

Eight cities have surpassed their peaks from before the financial crisis …”

“… growth in property values has been consistently outpacing wage gains, crimping affordability … That could eventually become a headwind to faster price appreciation.”

But why worry?

After all, as recently as June 2017 … just about 10 years after Ben Bernanke’s speech … CNBC reports these comments from current Fed chair Janet Yellen:

Fed Chair Janet Yellen said Tuesday that banks are ‘very much stronger’ and another financial crisis is unlikely anytime soon.”

“She also made a bold prediction: that another financial crisis the likes of the one that exploded in 2008 was not likely ‘in our lifetime.’”

And this more recent Bloomberg article reports additional reassurances from Ms. Yellen:

With stocks trading at record highs, Yellen downplayed the threat of financial instability.”

In fact, Bloomberg quotes Ms. Yellen:

Although asset valuations are high by historical standards, overall vulnerabilities in the financial sector appear moderate, as the banking system is well capitalized and broad measures of leverage and credit growth remain contained …

Kind of reminds us of Han Solo in the original Star Wars …

Everything is under control. Situation normal. Had a … malfunction. But uh, everything is perfectly alright now. We’re fine … how are you?”

So what can we glean from all of this?

First, just because PhDs say everything is hunky dory doesn’t mean it is … or it isn’t.  So don’t lose sleep … or sleep too soundly … because of academic or political financial rhetoric.

Jim Rickards told us the Fed is clueless and history seems to affirm this.

But in spite of the sub-prime contagion and subsequent financial crisis … including a horrific stock market crash … after 10 years, real estate in most markets has come back.

In fact, many people made lots of money on real estate from 2008 to present.  So a crash is nothing to be afraid of … IF you’re structured to survive it … and profit from it.

The two biggest lessons about surviving come from real estate guys Robert Kiyosaki and Donald Trump.

Kiyosaki stresses the importance of cash flow.  That is, holding properties which produce positive cash flow so you can hold on to them through a severe downturn.

Donald Trump told us to always have some cash on hand.  It’s hard to put out financial fires or go bargain shopping when you have no liquidity.  And when credit gets cut off, cash is the best form of liquidity.

Of course, both those guys made a ton of money on equity.  But … it’s cash flow that allows you to control a property until equity happens.

And it’s cash that lets you buy properties when everyone else is dumping them to raise cash fast.

It’s not really complicated.  And the longer you live, the more obvious it is.

Because, as they say … history may not repeat itself, but it often rhymes.

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.

Real Estate Goal Setting – A New Plan for a New Year

 

new year real estate

It’s a new year—and time for a new YOU.

A new real-estate-investor you, that is.

Real estate investing is a math-based science, but it’s also an art of creative decisions.

Today, we want to help you figure out how to optimize the MATH and the ART of real estate investing to achieve both your inner and external goals.

Your inner goals are what you want for your own life.

Your external goals are what you want for the world around you.

We want to help you answer that big-picture question: How do I take who I am and translate that into what I want to do as a real estate investor?

In our latest episode of the The Real Estate Guys™ radio show we talk about setting goals and what YOU should think about as you start making your plan for the New Year.

You’ll hear from:

  • Your juiced-and-jazzed host, Robert Helms
  • His fired-up co-host, Russell Gray

Listen

 


 

Subscribe

 

Broadcasting since 1997 with over 300 episodes on iTunes!

real estate podcast on itunesSubscribe on Androidyoutube_subscribe_button__2014__by_just_browsiing-d7qkda4

 

 

Review

 

When you give us a positive review on iTunes you help us continue to bring you high caliber guests and attract new listeners. It’s easy and takes just a minute! (Don’t know how? Follow these instructions.)  Thanks!


Before anything else, do the math

The first thing we want you to look at when you sit down to set your real estate goals for the New Year is money, plain and simple.

For many investors, investing in real estate means getting out of the rat race.

If you do it right, being an investor can mean you don’t have to trade time for dollars!

That’s an incredible goal.

So before you figure anything else out, do this: figure out your number, the amount of monthly passive income you want or need to live comfortably.

Next, figure out what yield you can anticipate from your equity.

Here’s where it gets a little tricky. Not every real estate investor starts with millions in equity.

In fact, many start with very little. (Don’t feel you’re alone if that’s the case for you!)

If you’re a beginning real estate investor, a critical part of reaching your number is amassing equity.

Here’s an example: Investor John figures out that his number is $10,000/month, or $120,000/year. He knows he can get 5% yield on his equity. That means John needs 2.4 million dollars equity to be comfortable.

Investor John isn’t a millionaire, however. He only has $100,000 to start with. John invests that $100,000 wisely and is able to grow it by 20% each year. In 18 years, John has accumulated 2.6 million dollars and reached critical mass.

18 years might seem … well, it might seem like a lot!

How quickly you grow your equity and reach that critical mass depends on how you leverage your equity. Maybe you’re a conservative investor like John. Or maybe you’re more aggressive?

The approach you take will depend on what you need real estate to do for you.

No matter your approach, here are the most important questions YOU need to ask yourself when you sit down to work out your goals:

  1. Where am I at right now?
  1. Where do I want to go?
  1. What do I have to work with?
  1. How can I begin to take actionable steps to get to my goal?

Imagine a pinball bouncing around. That’s what you look like without a plan!

Do the math, make a plan, execute your plan, and your chances of success will be much better in the long term.

Master the art of real estate investing

While crunching the numbers may be a doable science, real estate investing requires a certain kind of art: a creative balancing act, if you will.

This is because there is NO one-size-fits-all goal-setting strategy.

An important part of setting goals as a real estate investor is putting your goals (and your assets!) in three different buckets: short-term, mid-term, and long-term.

This is one way to balance conservative and aggressive approaches, to experiment without risking your whole nest egg.

Artfully balancing your assets can allow you to sustain yourself while you grow equity.

Two examples:

  1. Carol works a day job and invests in real estate part time. She uses the money from her day job for daily living expenses and sets aside the money she earns from real estate investing to re-invest so she can grow her equity.
  1. Dan has been investing in real estate for a while, but all his equity is invested. He decides to go full time and become a syndicator. He makes a living from the fees and profits he gets as a syndicator without taking any money from his own portfolio.

As you can see, Dan and Carol have COMPLETELY different approaches to real estate investing.

However, both Dan and Carol have figured out how to sustain themselves WITHOUT killing the goose that lays the golden egg, so to speak.

Internal goal setting: What do you want for your life?

A lot of real estate investing comes down to lifestyle decisions.

Ask yourself: How do I want to live? Who do I want to work for? Where do I want to own real estate? What kind of relationships do I want to form? Above all, what’s interesting to me on a daily basis? What makes me tick?

Don’t default into a situation where you’re not interested in what you’re doing.

RIGHT NOW, take a look at what you’re doing. Sit back and ask the ultimate question: Is this really what I want to do?

Your homework today is to take some alone time to imagine your career and your future. Think about how you want to spend your days.

Then sit down with a paper and pencil (or your laptop, typewriter, fountain pen … you get the picture) and make your internal real estate goals.

Like we’ll talk about in our upcoming goals retreat, every goal you make should be two things: specific and measurable.

Some examples:

  1. How many hours will I devote to education (events, podcasts, reading, conversations with other investors, etc.) each month this year?
  2. How many properties will I research each month?
  3. By the end of this year, how many additional properties will I accumulate?

Writing down a number is POWERFUL. And it’s critical to reaching your goals.

Maybe this is not a year of acquisition for you, but a year to get structured, get educated, find your markets, and assemble your team.

That’s okay!

There’s no right or wrong path, as long as you’re working on goals to get ahead.

External goal setting: what are you going to do for the world?

We talk a LOT about what real estate investing can do for you.

Another important component of investing is what are YOU going to do for OTHERS?

Most people want the world to be a better place, even if they don’t always agree on how that should be done.

When you’re creating your business, how are you going to serve the world?

Will you use your free time to volunteer in communities around you? Take your love of real estate and use it to help others?

No matter how much is in your bank account, ask yourself: Is my life rich right now?

As an entrepreneur, you may already be serving the people you work with. Maybe you’re providing clean, affordable housing. Maybe you’re creating housing opportunities where there were none before.

More real estate might increase your cash flow, but it can also help people live better lives.

As Steve Jobs has said, “We’re here to put a dent in the universe.”

Once you have an external goal, combine that with your internal goals in a sound business model with a good financial plan, and you’ll have a winning formula for a successful life.

New year, new you

Your personal goal setting will really come down to what we call zero-based thinking.

Ask yourself: Knowing what I know now, will I continue to do what I’m doing? What will I change?

Reevaluate your past year.

Ask yourself: What did I set out to do? What did I succeed at? Most importantly, where did I fall short and why?

Be BRUTALLY honest with yourself.

Did you fall short because you didn’t have the right people on the bus? Didn’t have the appropriate personal discipline? Or didn’t ACTUALLY want to complete that goal in the first place?

Examine what is possible for you.

Real estate investing should make you “juiced and jazzed,” as Robert says.

You can’t get out of bed and go to work every day if you don’t have something driving you. You need a purpose that’s true for you.

Get out in the real world. Look at other investors. Listen to them. Collect ideas. Go to events where you can meet like-minded investors.

Then get in touch with your inner investor. Develop your personal investment philosophy. Define the market and product types you’re interested in.

Form your big picture of what you want to do for YOU and what you want to do for the WORLD.

Then go out and make some equity happen.

Make this next one an amazing year!


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.

Next Page »