Podcast: Ask The Guys – Markets, Growth, Condos and Credibility

How to Find Financial Freedom Through Real Estate Investing

Some people go from rags to riches … all by getting involved in real estate. 

That may not be the case for everyone, but real estate IS one of the most reliable vehicles for building lasting financial freedom. 

We’re talking with an investor whose story is a gripping tale of winning … losing … and making a comeback. See what lessons YOU can learn from his experience. 

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

• Your free-wheeling host, Robert Helms
• His free-loving co-host, Russell Gray
• Investor and author of Financial Freedom with Real Estate Investing, Michael Blank

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Real estate’s many paths to financial freedom

We have so many listeners who are brand new to real estate. 

They’re trying to figure out if it really makes sense to build wealth with real estate. Is it really a vehicle for growth?

Real estate isn’t as simple as some other investments … but there are a lot of reasons to like real estate. It’s arguably the best financial vehicle on earth. 

At this particular time in the economic cycle, some people are a little nervous about real estate … but you don’t have to be. 

Walking into real estate is like walking into a big mall … there are so many different ways to approach it. 

Real estate is just a vehicle … and it’s a vehicle to produce a financial result in your life. 

When you figure that out, the first thing you need to do is develop yourself as an investor. 

Think about who you are, what you want, what you have to work within terms of experience, financial resources, relationships … all the elements that help build your personal investment philosophy. 

Then … you look at what the market is giving you to work with, and YOU work to put it all together. 

You’re going to have to fill in some gaps in your education … and maybe your credit score or your income. You’re also going to need to position yourself to understand markets and teams. 

The easiest way to do this is to surround yourself with other people who have been there, done that. 

There are so many ways to approach the problem of making money in real estate … and that’s what we are talking about today. 

Meet Michael Blank

One of the paradigms we have to break is this idea of scarcity versus abundance. So many people believe that there is only so much to go around. 

By sharing, we all open ourselves up to better deals and more education. It’s called an abundance mindset. 

In that spirit, our guest today is a fellow podcaster. He’s an author. He’s a teacher. He’s Michael Blank. 

Michael’s latest book is Financial Freedom with Real Estate Investing. But the story of how he got into real estate … like every investor’s … is unique. 

Michael has a master’s degree in computer science. He started off programming and joined a software startup in the late 1990s.

When the software company went public, Michael found himself with some cash in the bank. But he learned quickly that it doesn’t matter what’s in your bank account … it’s about what passive income you have. 

“I quit my job and learned how to trade stocks and options, how to flip houses. My big idea was actually restaurants, and I got involved with a pizza franchise,” Michael says. 

That worked for Michael until the recession. 

“I lost my IPO, millions in the restaurant debacle. I almost lost my house. It was a low point for me, and I learned a lot during that time,” Michael says. 

Michael clawed his way out with real estate. 

Like so many people, Michael thought of real estate as single-family house investing. He started by flipping homes. 

But he didn’t have any money … so he learned how to raise money and syndicate. He started buying two houses a month and flipped three dozen houses in a few years. 

He ended up investing in an apartment building … and he learned a crucial real estate lesson. 

“While house flipping was profitable, it was a lot of work. I couldn’t just take time off if I wanted. Meanwhile, this apartment building was just sending me money in my mailbox,” Michael says. 

Today, Michael is one of the leading authorities on multifamily syndication. 

Don’t wait to get started

Multifamily is just one of the many real estate options at “the mall.” But it’s an awesome niche to play in. 

Deals might be a little scarcer … and cap rates might be a little compressed … but financial freedom means having other people get up every day and work hard and send a chunk of their money to you. 

That’s what apartments are great at. 

The biggest hold-ups to investors jumping into multifamily … money and experience. 

They think that the smart thing to do is landlord for 5 to 10 years in single-family and then take that experience and “graduate” to multifamily investing. 

“That plan is unnecessary,” Michael says. “The ability to raise money and be taken seriously by brokers and investors can be achieved in a very short period of time.” 

Michael teaches people how to do just that. 

You can learn all the details … how to read contracts and understand titles and escrow and market analysis … but you have to start with your mindset and your heart. 

If you believe that you CAN learn what you need to know to be successful … then you are already on your way. 

Learn more about how YOU can find financial freedom through real estate investing … and the different investment options available to you … by listening in to our full episode!

More From The Real Estate Guys™…

• Sign up for The Real Estate Guys™ Free Newsletter
• Check out all the great free info in our Special Reports library.
• Don’t miss an episode of The Real Estate Guys™ radio show. Subscribe on iTunes or Android or YouTube!
• Stay connected with The Real Estate Guys™ on Facebook,  and our Feedback page.

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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Podcast: How to Find Financial Freedom through Real Estate Investing

Podcast: Robert Kiyosaki on Private Investing and the 3 Kinds of Money

New Orleans Investment Conference – Money, Metals, and More!

We’re coming at you with interviews recorded live at the 2019 New Orleans Investment Conference!

We’re sitting down with a remarkable lineup of economic and investment experts … from precious metals to the Fed and beyond!

Listen in for valuable perspectives into the economy, the job market, interest rates … and more!

As always, we offer information … not advice. Always run your ideas by a qualified professional. We’re here to provide commentary, education, training, and resources to help investors like YOU find success. 

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

• Your invested host, Robert Helms
• Money manager, Peter Schiff 
• Former Fed official, Danielle DiMartino-Booth
• Billionaire and CEO of Sprott US Holdings Inc., Rick Rule
• Renowned economist, Mark Skousen
• Gold expert, Brien Lundin

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Broadcasting since 1997 with over 300 episodes on iTunes!

 

 

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What’s going on with gold

As much as we love real estate, we also keep our eyes on other economic metrics. 

For this episode, we’re in New Orleans at the 45th annual New Orleans Investment Conference … and we have a lot of great guests for you. 

We’re talking gold mining, the Fed, the economy … and more!

Russ was unable to make it to the event this year … but money manager Peter Schiff is filling in. 

“This conference started in the ’70s. Because of inflation, people started buying gold. The same thing is happening today, so this conference never goes out of style,” Peter says. 

At its root, this really is a gold conference. So, let’s start with gold. 

People don’t really appreciate the fact that gold has been going up. In the last two decades, gold has increased in value five times over. 

That’s a greater increase than the Dow or the S and P. 

Central banks are creating inflation and printing a lot of money. They are basically saying that they don’t want savers to have a positive return. They want you to lose money on your savings. 

So, what are you going to do? 

For many people, gold is the answer. They hold gold instead of placing money in a traditional savings environment. 

This conference is unique because we have gold buyers but also gold producers in the audience. 

“I think there’s an incredible investment opportunity in gold mining stocks, because this whole sector has been overlooked by Wall Street,” Peter says. 

When the price of gold catches up to where it should be, there’s going to be many mines that come into production and are much more profitable. 

But investing in gold in this way does come with risk. Peter recommends working with an expert who understands this specialized business to ensure you put money behind the right mining company. 

The merits of mining

Rick Rule is a billionaire CEO … but his expertise is in mining. 

Many people think of gold and silver and think of small coins … but there is a lot that happens before mined gold becomes that coin. 

You have to permit and finance the construction of a mine. You have to operate a mine and … when the gold is gone … you have to responsibly close the mine. 

“There’s a lot more losers than winners in this business,” Rick says. “Mineral exploration is really technology, so it’s a similar situation to high tech venture capital. Most ventures fail.”

The point, according to Rick, is don’t try to beat the market too much by taking many risks. 

Instead, participate in the market, and buy into the best companies to avoid making mistakes. 

Rick says that the best way to begin is by owning some physical gold. Then, invest in a company that has growing reserves and revenues rather than companies that are cannibalizing their existing asset base. 

The state of the Federal Reserve

Danielle DiMartino Booth is still “fed up” … she worked at the Fed and then wrote a book about how it is bad for America. 

Needless to say … she offers a unique perspective. 

“I was able to be there at the advent of taking interest rates to the zero bound, of venturing into this grand experiment of blowing up the Fed’s balance sheet,” Danielle says. 

All along the way, Danielle says, there were assurances that this move would be temporary and reduce the size of the balance sheet … but we now know it’s neither of those things. 

In addition to quantitative tightening, currency in circulation around the world has been going up, and that pulls an additional amount of reserves out of the financial system. 

Danielle says that foreign central banks had been parking a lot of money at the Fed, because they have negative interest rates at home … doubling the effect of pulling reserves out of the system. 

The treasury had depleted its checking account … so they had to rebuild the balance. Now we’re running trillion dollar deficits. 

And in a matter of weeks, the Fed has ramped up its own liquidity injection … something Danielle says we would have thought of as unheard of a year ago. 

So, it’s going to be interesting to watch how things play out. 

Diversification in a bull market

Mark Skousen is a renowned economist and the longest standing speaker at the New Orleans Investment Conference. 

Mark is always in touch with the market cycle … and he has some observations of the current economy. 

“This is the longest-running bull market in our history, and this is the most disrespected stock bull market in history,” Mark says. 

Mark also reminds us that diversification is key … and that different assets can perform very differently under the same economic conditions. 

“You have to take what the market gives you. So, you want to be positioned to see a turnaround coming, one way or another, and weather it,” Mark says. 

Protecting your money 

Brien Lundin knows gold … and this conference is his showcase for what resources like precious metals can do for a portfolio. 

“Right now, we are in a confirmed gold and silver bull market. Everything is pointing toward much higher prices,” Brien says. 

Big trends in the economy and geopolitics are pushing for much higher gold prices. Gold and silver are the primary ways that Brien feels people can protect themselves from monetary depreciation. 

“I would urge people to just learn about other investment classes. Ask the tough questions, and find the best way to protect your money,” Brien says. 

To hear more from our interviews at the New Orleans Investment Conference … listen in to our full episode!

More From The Real Estate Guys™…

• Sign up for The Real Estate Guys™ Free Newsletter
• Check out all the great free info in our Special Reports library.
• Don’t miss an episode of The Real Estate Guys™ radio show. Subscribe on iTunes or Android or YouTube!
• Stay connected with The Real Estate Guys™ on Facebook,  and our Feedback page.

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

Podcast: New Orleans Investment Conference – Money, Metals and More!

Finding Great Properties in Growing Markets

Real estate investing can seem complicated … but it’s really very simple. 

Successful real estate investors buy great properties in growing markets. It IS simple. But it’s not always easy. 

We’re talking to a real estate investor with experience in evolution. He’ll share how he finds properties that make sense in markets that are poised for growth and resilience. 

And … he’ll give a few tips for how YOU can evolve as market conditions shift. 

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

• Your resilient host, Robert Helms
• His shifting co-host, Russell Gray
• President and Co-Founder of Southern Impression Homes, Chris Funk

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Broadcasting since 1997 with over 300 episodes on iTunes!

 

 

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Getting creative in a good market

It’s fun renting real estate … especially if you can make a return. 

We love real estate. We really do. But every market is not the same. It’s important that you pick your markets well … now more than ever. 

People who look at what’s happening in the economic world at the macro level look at real estate as an asset class … but it is so much more. 

Every market is different … every property is different … every property niche is different. And the ownership, motivation, and structure of each deal is different. 

Real estate deals are unique as a fingerprint … and there’s always going to be an opportunity. 

Today we are talking about a market that we have spent a lot of time in and that we know pretty well. But we haven’t talked about it in a while … Atlanta. 

The other thing we’re going to talk about today is buying new. 

It’s rare that a new property can give you the same financial performance as buying used for a variety of reasons … not the least of which is that to develop a property takes the money for the land AND money for materials and labor. 

But there are rare opportunities when you can find a brand new property that actually performs. 

We’ve currently got a real estate guy in the White House … and whether you like him or not, he knows that there is a lot of expense in development … and much of that is regulatory. 

Recently, he signed an Executive Order to reduce the cost of regulation in building … and the National Association of Home Builders loved it. 

That’s because the cost of building a single-family home for them is 25% regulation. Wow. 

So, with regulation taking less of a cut … there are some things happening. 

Why not buy new?

Our guest today is a creative entrepreneur who is building new builds in a couple of great markets. 

Chris Funk is the president and co-founder of Southern Impression Homes. We last met him in his office in Jacksonville, Florida, where he has an amazing property management team. 

In addition to many Florida markets, Chris and his team are making great inroads in a couple of new markets. 

“We are in Southwest Atlanta at the moment,” Chris says. “We’ve been there for six years, and our model has turned fully to build-to-rent.”

Chris and his team started looking at build costs from a brand-new construction standpoint. They found that if they were self-developing properties without a developer markup … they could still provide inventory at a discount. 

New construction has a lot of benefits … like decreased insurance costs and lower maintenance costs. 

For Chris, the answer quickly became clear. 

“You can have a house that was built in 1950, or you can get the same yield for a house that built in 2018 or 2019,” Chris says. 

A new build also offers a consistency of cash flow. 

“The sad thing for us is that after our investors close on a home and we put a tenant in, we don’t hear from them again. The check just comes every month,” Chris says. 

Many of the tenants stay for long periods of time because they are happy to be raising families in new construction. 

Another reason for low turnover is that Chris and his team can spec out the houses exactly how they want them. And they can buy great materials at a bulk price because of the volume. 

“We got the best price on granite, so everything has granite,” Chris says. 

Another great aspect of new builds is that if investors want to sell the home down the line, it already has the specs they need to sell competitively on the market. 

All about Atlanta

Chris and his team are operating in a lot of different markets … but there are lots of reasons to love Atlanta. 

“It’s a market that just can’t be ignored,” Chris says. 

Atlanta is the fourth-largest, fastest-growing market in the United States. Many Fortune 500 companies have bases there, and the population growth is tremendous. 

The market in Atlanta is also very consistent in its growth and rates. 

Currently, job growth is outpacing population … which means more people are coming to Atlanta. 

But the market isn’t a one-trick pony. There is a lot of diversity in the area. For instance … Atlanta just surpassed Hollywood in movie production dollars. 

Chris says that the rents are great in Atlanta. With population growth the way it is … people need more housing. 

And they might as well buy new. 

To learn more about Atlanta and Southern Impression Homes … listen in to our full episode!

More From The Real Estate Guys™…

• Sign up for The Real Estate Guys™ Free Newsletter
• Check out all the great free info in our Special Reports library.
• Don’t miss an episode of The Real Estate Guys™ radio show. Subscribe on iTunes or Android or YouTube!
• Stay connected with The Real Estate Guys™ on Facebook,  and our Feedback page.

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

Podcast: Finding Great Properties in Growing Markets

Halloween Horror Stories 2019

Another year … another Halloween … another classic collection of creepy catastrophes from our listeners. 

The stories you are about to hear are all true … terrible, but true!

And while these investors paid the price, YOU don’t have to … if you learn from their experiences. 

Tune in for terrifying tales of toil, trouble, and real estate!

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

• Your spooky host, Robert Helms
• His cooky co-host, Russell Gray 

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Broadcasting since 1997 with over 300 episodes on iTunes!

 

 

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Halloween horror stories … and important lessons learned

Welcome to another bone-breaking edition of Halloween horror stories! 

Alarming anecdotes and deals that went wickedly wrong can contribute compelling lessons for real estate investors. 

It’s our annual edition of Halloween Horror Stories!

Real estate is a messy business … but this episode isn’t designed to scare people off. Instead, it’s a way for us to share tribal knowledge. 

Somebody paid full price for these lessons … so you don’t have to. 

The never-ending cosmetic refresh

Curtis Drake and Ryan Pedit acquired a property in a market that they were previously in. It was light rehab … and they wanted to do the cosmetic piece. 

They met with their on-the-ground property management company and went over the timeline and expectations for the updates. They closed on the property … and took off. 

But the whole project went sideways with no revenue income. 

What they learned was that they were doing things that were outside of their management’s wheelhouse. That team typically just managed property … they didn’t handle cosmetic overhauls. 

Many property managers have a bevy of contractors in their network. So, when you say you want to do some light rehab, they think, “Yeah, we can do that.”

But rehab isn’t the same as upkeep. 

Curtis and Ryan also share the importance of having a written agreement with dates and times established. Their handshake agreement left them without any leverage to fall back on. 

Should have built from scratch

Loe Hornbuckle has been on the show before. He is a super syndicator … but even he has a horror story to share. 

Loe did a project where he bought an existing assisted living facility. There was a lot of due diligence involved … but even then, some things slip through. 

Turns out the property had an illegal fire suppression system that was not caught by any of the previous inspections. 

Instead, it was caught when they filed for a permit to expand the property footprint into the garage. 

Loe began working with the city to resolve the issue. It took six weeks for the city to articulate why the system hadn’t been caught and what the next steps needed to be.

Turns out the city allows certain fire suppression systems in single-family homes and others for businesses. When the property applied for a permit, the city thought it was an SFH. 

But the property actually had an assisted living component … and with a certain number of residents, a different class of fire suppression systems is required. 

So, Loe and his team had to rip out the old system and install a new one … about $15,000 worth of unexpected cost … and they lost 15 to 16 weeks of time. 

Lessons learned … there may be more to your due diligence than you think. Really focus and take account of the physical pieces of the building.  

Just because something has been checked off … it doesn’t mean it’s correct. 

Another lesson Loe walked away with is that there is power in building from the ground up. 

When you purchase an existing property, there are things you will need to tear out and replace. Sometimes, you might as well start from scratch. 

Tragedy turns into lawsuit 

Our good friend and wonderful attorney Kevin Day shares one of his own client’s horror stories.

This particular client had an apartment building. One of the tenants had a boyfriend who was home babysitting her son, left food on the stove … and went to sleep. 

A fire started, and only the boyfriend was able to get out. The family went after the apartment owner in a lawsuit. 

It ended in a settlement with insurance, but there are lessons to be learned. 

Kevin says the big lessons are to separate targets. As you do your business and estate planning … remember that privacy is important. 

The lower profile you have … if they don’t know you have five other rental properties … the less of a target you are.  

Fully occupied … or not

Patti Hussey and Andrew Thruston from PJ Hussey … a property and construction management team in Phoenix, Arizona … have their own Halloween horror story to share. 

The team was taking on a 28-unit apartment complex in the northeast portion of Phoenix. 

One thing they noticed was that all of the tenants’ leases were month to month. 

It was a hundred percent occupied with rents through the roof … but the day the deal closed, they lost 10 tenants. 

The previous owner was calling tenants and telling them that they were free to move into the next property. The strategy was to build up residency in these multi-family apartments, sell them … and then move tenants to the next property. 

Everything was to give the allusion of high residency. 

The PJ Hussey team jumped in and worked to fill apartments with appropriate leases … but it was challenging. 

The big lesson the team took away is to really be careful how you do your vetting. Talk to the tenants and ask them how long they have been there. 

If things look suspicious … trust your gut. 

For more Halloween Horror stories … and lessons learned … listen to our full episode!

More From The Real Estate Guys™…

• Sign up for The Real Estate Guys™ Free Newsletter
• Check out all the great free info in our Special Reports library.
• Don’t miss an episode of The Real Estate Guys™ radio show. Subscribe on iTunes or Android or YouTube!
• Stay connected with The Real Estate Guys™ on Facebook,  and our Feedback page.

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

Podcast: Halloween Horror Stories 2019

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