Podcast: Clues in the News – Stocks, Negative Rates, Oil, Gold and You

From Mr. Stock Market’s Wild Ride to negative interest rates on mortgages, to the big moves in gold and oil … the news is full of clues that the financial winds are shifting.

What’s a real estate investor to do?

Listen in as we take a look at the hottest headlines and consider what they mean to Main Street investors.


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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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Podcast: Seasteading – Investing Opportunities on the High Seas

This show’s a little quirky … in more ways than one!

Imagine owning real estate without the dirt …

Just as freedom seeking pilgrims fled Europe for the brave new world of the Americas, there’s a growing movement among ruggedly independent entrepreneurs to set up homesteads on the high seas.

It’s called “seasteading”.

Listen in to this fascinating episode as we visit with a pioneer of the seasteading movement … and consider whether there’s investing opportunity in floating properties.


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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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Podcast: Finding Turnkey Rentals in Positive Cash-Flow Markets

Positive cash-flow is much more about the market and the team than it is about the property.

In this episode, we visit with an old friend who’s cracked the code for consistent cash-flow from rental houses in one market … and is now expanding into an adjacent market.

Tune in and find out why, where, and how a world-class investor is creating positive cash-flows with turnkey rental houses.


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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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Podcast: Senior Housing and Opportunity Zones – A Winning Formula

It’s said one shortcut to success is investing in the path of progress. When you get in front of a wave of demand and capital, it can take you on a very profitable ride.

And when two powerful forces … demographics and tax incentives … align to attract capital into a specific niche, the possibilities are twice as exciting!

In this episode we revisit two topics we’ve talked about before … senior housing and opportunity zones … with a successful real estate entrepreneur who’s putting both together into one exciting investment play.

So listen in as we explore how senior housing and opportunity zones can be combined to create a winning investment strategy.


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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Podcast: Simple Passive Income through Self-Storage Investing

Investors looking for high yields and low drama are excited about how self-storage investing works.

The model is simple. The concept is proven. Self-storage investing gives investors the best parts of income property investing without the hassle of tenants and toilets.

Of course, all investments have pros and cons.

So tune in as we talk with a pro about how to enjoy simple passive income through self-storage 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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Podcast: Where We Are in the Cycle and What You Can Do About It

It’s been said that history may not repeat itself, but it often rhymes … and what goes up, must come down.

The persistent ups and downs of markets creates a certain anxiety when a boom starts to mature. Will the good times roll … or is the wind about to change?

Tune in as we take on where we are in the cycle … and what you can do about it.


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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Podcast: How to Find a Mentor and Make It Work

Finding, vetting, and thriving with a mentor is one of the biggest shortcuts to success in real estate investing and in life.

Nearly every successful person can point to one or more people whose wisdom and encouragement played a critical role in their development.

But recognizing the value of a mentor is one thing. Finding a great mentor and making the relationship work in the real world is where the rubber meets the road.

So tune in as we take on the topic of finding, vetting, and thriving with mentors.


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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Podcast: Ask The Guys – Getting Started, Analyzing Deals, and Understanding Cycles

Lots more great questions from The Real Estate Guys™ audience!

In this episode we talk about getting started in real estate investing, analyzing deals, understanding how economic cycles affect real estate investing … and a whole lot more!


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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Ask the Guys – Where to Buy, When to Sell, and Becoming an Entrepreneur

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We love it when we get more questions than we can answer. It means our listeners are paying attention and seeking advice. Keep ‘em coming, guys!

But this time, we had so many questions that we had to narrow it down … so we chose the ones with the most universal themes.

The questions in this edition of Ask The Guys touch on when to sell a property, where to buy one, and how to get educated in the real estate investing world … as a student, a military veteran, and a future syndicator.

Our only disclaimer? We are NOT tax professionals or attorneys. We don’t give advice … just ideas and information!

With that said, please sit back and listen in as we bounce YOUR questions off each other.

Behind the microphones for this all-new edition of Ask The Guys

  • Your full-of-ideas host, Robert Helms
  • His full-of-it co-host, Russell Gray

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Question: I just got an offer on my property. Is now the time to sell?

Tina wrote from Redwood City, California, to ask us about a duplex she’s owned for over twenty years. She gets decent cash flow every month, but she just got an offer, and now she’s wondering whether it’s time to sell.
To any investor wondering whether they should sell a property they’ve owned for a while, we’d say now is definitely a good time to consider it.

But … there are a few things you should think about.

First, the basic math. Ask yourself some simple questions: How much equity do I have? How much equity would I net by selling? What would the tax impact of selling be?

Once you figure out the net amount of cash you could get, divide it by your cash flow to get your return on equity.

The big question when you’re considering the return on equity is “Compared to what?”

As in, how does that number compare to other things you could do … keeping the property, investing in a different market, or refinancing, for example.

The other part of the equation is the hassle factor.

This goes back to your personal investment philosophy. You need to do what YOU really want to do … not what someone else might do.

Is capital gain more important to you, or would you prefer appreciation? The Bay Area in general is a great market for appreciation. It’s not the most landlord friendly, however.

We have a couple of acquaintances in situations similar to Tina’s.

One did the back-of-the-envelope math and decided that because she was focused on cash flow and the market seemed like it might turn the other way soon, she wanted to take all her eggs off the table.

Another friend, also in the Bay Area, was concerned because she had so much equity sitting in her properties. She decided to sell as well.

Maybe your solution will be similar. And maybe it’ll look drastically different.

Ultimately, your final decision is just a matter of sitting down, asking yourself some questions about what YOU want, and doing the math. We also highly recommend you talk things out with your advisors.

Question: I’m a veteran with a big passion for real estate investing but a small chunk of change. How can I get started?

Lewis, from Middlebury, Connecticut, told us he’s obsessed with real estate investing. His three main interests are wholesaling, multi-family properties, and lease options.

Lewis is also a veteran who’s holding on to some debt and doesn’t have much cash to work with.

To Lewis and other new investors with high motivation and empty pockets, we say that desire and passion are WAY MORE important than money.

If you’re starting from nothing … there is absolutely, positively hope that you can succeed!

Our opinion is that the best investment is education.

With that said, you do have to be careful … paying big bucks doesn’t necessarily insure you’ll learn anything worthwhile.

That doesn’t mean good education will come without a price tag.

Watch out for free seminars … most are designed to masterfully separate you from your money. Remember, there’s always an agenda.

Books are a great place to start. If you’re strapped for cash, use your local library or listen to books using Audible.com.

Books and podcasts can help you learn the language so you know what you’re talking about and can join in the dialogue.

Of course, there’s a difference between book knowledge and knowledge gained from experience.

We have a few ideas for Lewis:

  1. Take inventory of the seven essential investor resources: cash, cash flow, equity, credit, time, talent, and relationships. You need to know what you’re working with before you can leverage it.
  2. Talk to a mortgage professional who knows how to do VA loans. Lewis’s veteran status gives him a leg up in getting a no-money-down loan.
  3. Consider jumping into wholesaling. Wholesaling can be a great training ground and is one of the best ways to make money when you don’t have much.
  4. Join a real estate investment club or an investing meetup in your area and meet other investors.
  5. Form relationships with people who can get deals and get you access to deal flow. The best option is to find a mentor.

It’s key for new investors to learn enough that they can go out and do something, but not so much that they get what we call “analysis paralysis.”

Learn the language, then focus on relationships that let you learn by doing and by example.

And remember … you will make mistakes. Don’t be afraid of them. Embrace them!

Figuring out how to turn a tough situation into a successful investment can be quite a bit of fun when you have the right attitude.

Question: What tools can I use to identify markets that have more opportunities for good cash flow?

Our third question is from an investor in Denver, Colorado. Michele’s been listening to the show and has keyed into the concept of identifying investment goals, particularly whether to invest for equity increases or income generation.

Her current goal is to find a multifamily property with cash flows, but she’s realized that the Denver area is strongly equity based, with high prices and low rents.

Michele’s question about how to find good markets for cash flow reminded us of the real estate adage, “Live where you want to live; invest where the numbers make sense.”

Unfortunately, Michele’s realization that the rents in her area don’t gel with the prices tends to be true in many other metropolitan statistical areas across the county as well, especially in regard to multifamily housing.

We are NOT here to talk Michele, or any investor, out of a personal investment decision.

But we would encourage Michele to take a step back and really evaluate why she wants to buy a multifamily property right now.

If you’re just starting out, you’re not locked into an asset class or product type yet. So now is a great time to consider whether a different product type might be better at producing the cash flow you want.

Going back to Michele’s question, if we were looking for a multifamily property right now, there are a few things we’d do.

  • First, get acquainted with the different markets around the country. Go to events, look at properties for sale, and start working on zooming in on a market.
  • Make a checklist for your ideal market … is the population growing? What’s the cost-of-living tax like?
  • It’s a good idea to look for markets with big populations. When you’re checking out a state, evaluate how landlord- and business-friendly that state is.
  • When you’re doing your research, start by looking for clues in the news, then dig a little deeper.
  • Consider broker sites and local apartment associations. Both provide invaluable information for landlords, including rent surveys and other resources and reports.
  • Analyze the numbers in those reports, and eventually, the numbers will start to talk to you.

When a deal that fits all your criteria pops up, be ready. You’ll have to be on it immediately.

It’s a hard time to be a multifamily bidder right now, but we still think there’s opportunity out there.

Find a way to stick your toe in the marketplace … maybe even consider joining a more experienced syndicator as an investor.

Eventually, you’ll gain relationships and get enough exposure that you can do your own thing.

Question: What about the smaller markets?

Listener Jay, from Scottsdale, Arizona, has also heard us tell investors to “invest where the numbers make sense.”

But he noticed that we don’t seem to mention the little markets … Akron, Ohio, for example.

There is a method to our madness. We like big markets for several reasons.

First, there’s a lot of available data, and landlords don’t have to worry about where tenants will come from.

Second, smaller towns tend to come with a host of difficulties … fewer practitioners, contractors, and resources alongside highly variable rents.

Small towns don’t have the infrastructure to support big deals. And they tend to lack good, professional real estate practitioners so you can assemble a team.

They also may not be on the receiving end of potential government support during tough times.

Third, small towns have MUCH less liquidity. Bigger markets are going to have a lot more traction.

Sticking to small towns means operating at the margins. If you’re at the margin when a recession comes around, that margin goes away and you’re in trouble.

It’s the investments at the margins that tend to collapse during downturns while the core markets stay strong.

We won’t say there isn’t any opportunity for success in smaller markets. We will say, however, that we don’t know any truly successful investors operating solely in small markets.

Question: How do I know whether I’m ready to attend the Secrets of Successful Syndication seminar?

Megan, from Santa Ana, CA just attended our Create Your Future goals retreat with her wife and says she is PUMPED about real estate investing.

Since they started listening to our show about a year ago, Megan and her wife have purchased FOUR turnkey single-family homes!

They’re searching for their first apartment building now, but they know they’ll run out of money soon and are interested in syndicating in the future.

But Megan’s worried they’re not ready to ask the right questions at our Secrets of Successful Syndication event.

We will say that the seminar is not for everybody … if you’ve never owned or invested in real estate or only listened to free podcasts to educate yourself, it’s probably not the next logical step.

Our syndication seminar is two days that give attendees the lowdown on what syndication is and where to find deals and money.

We have people who come to the seminar over and over. The beauty of our Secrets of Successful Syndication seminar is that it covers the basics for newbies, but if you keep coming back, you start understanding all the little nuances.

Our take is that someone who recognizes they’ve got the real estate investment bug, is taking action, has a resume, and is goal-oriented and humble is the PERFECT person to attend the seminar. So Megan … you’re exactly what the business needs.

And if you’re still questioning whether you’re ready, ask yourself: how quickly do you want to start preparing? Our view is that sooner is better.

You don’t want to have an opportunity arise and not have the education to identify or take advantage of it.

Even worse, you don’t want to be the person who goes out and does syndication without training.

The only reason NOT to come is if you’re not serious about being in the real estate business … and Megan, it sounds like you’re pretty serious.

Remember … we always regret the things we DIDN’T do a whole lot more than the things we DID do.

Question: As a current student, what can I do to prepare myself to be an entrepreneur?

Our last question comes from Yahoso, who’s been listening in all the way from Benin City, Nigeria.

We think there are a lot of things you can do to prepare to be an entrepreneur while you’re a student. A few:

  1. Listen to podcasts and read books, as many as you can get your hands on. These will help you learn the language you need to speak.
  2. Get involved in a dialogue with people who ARE successful. Have conversations with people who know what they’re doing. Play the student card! Many entrepreneurs will let you interview them simply because you’re a student.
  3. Learn sales skills. Whether you like it or not, you can’t be an entrepreneur without ‘em.

Build your box of tools. When you have confidence in your skillset, you’ll find doors will open for you.

Have a question for the guys? Ask us here, and we’ll try to get you on the show!


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.

Peak Portfolio Management

 

portfolio management

Are you prepared to hit a peak in your investing cycle?

Whether you’re an old hand at investing or a beginner, you’re probably wondering what to expect in a changing political and social environment and how you can optimize market cycles to work for YOU.

On our latest show, we interview successful multi-family investor and Rich Dad advisor, Ken McElroy.

Ken currently owns over 10,000 units and provides safe, affordable housing for thousands of people.

We picked Ken’s brain so we could get YOU his best advice on managing multi-family rental units and figuring out what tenants want.

We also chat about what’s changing in real estate, how to get started as a new investor, and what to do when you’re at your peak.

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

  • Your peak pontificating host, Robert Helms
  • His past his peak co-host, Russell Gray
  • Award-winning multi-family investor and Rich Dad advisor, Ken McElroy

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Broadcasting since 1997 with over 300 episodes on iTunes!

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Your cycle as an investor

One person can look at the metrics and notice that unemployment’s down, the stock market’s up, and wages are trending higher. That person might think the market’s ticking up.

A different person can look at the same metrics and note that home ownership is down and inflation is up. They will conclude that the market’s trending down.

There are so many different metrics to measure market cycles.

Here’s the secret: there’s more than one cycle.

Rent prices can be up while occupancy is low. When home ownership trends upward, landlords will have fewer tenants.

The most important cycle is YOUR cycle as an investor. You might be still acquiring knowledge, OR you might be an investor at the top of your game.

Wherever you are personally as an investor, there are things you can do to optimize your holdings (and potential holdings).

We think Ken McElroy is a GREAT example of how to optimize holdings at the peak of a cycle.

Q&A with Ken McElroy

Ken and his partner, Ross McCallister, of MC Companies, were recently honored as one of the top 10 management companies in the U.S.

We sat down with Ken to get an insider’s view on what’s happening with multi-family units right now.

What’s going on in the apartment space right now?

For now, Ken said, “It’s time to sit back and let others buy.” Last year MC Companies only made one new deal, and he’s moving really slowly.

Not that that’s always easy. MC Companies has over 800 investors. With his partner Ross, Ken manages a team of 350 people who buy, manage, and close on properties.

To have the discipline to say no … especially when they have the equity … is difficult. But it’s what’s best for their company right now.

They wait until they see the right fit for their investing philosophy. Then they buy.

Not before.

How’s your tenant retention?

Ken hasn’t tested it this cycle, but across the nation, 96% of rental units are occupied. Occupancy is high across the board right now, with some exceptions in certain markets.

“What will really be interesting are the next few years,” says Ken. “The companies that are hunkering down now are the ones who’ll do really well.”

How are tenant expectations changing? What can investors change to add value and retain tenants?

Ken’s properties are a level below high end. What he’s really seeing demand for, he says, are basic services you’d come to expect: a safe community, garden spaces, pet options, and WiFi.

Those things are pretty easy to deliver. Especially when you take Ken’s approach:

“We’re continually trying to figure out what tenants want,” he said. “That’s what keeps people there.”

Tell us more about pets.

A couple years ago, Ken and his company realized they’d never had a problem with a pet.

So they took a leap and decided to completely embrace tenants with pets.

They’ve even formed a whole brand around it, including pet clubhouses and pet parks in every community.

They’re now known as the go-to management company for pets.

It’s all because they went back to basics, Ken says. They looked at what residents want, and they asked themselves, “What could we do differently?

Ken’s tenants have, as you can imagine, a doggone good time.

What are some technological changes you’re seeing in the real estate market?

Ken pointed us to what’s happening in retail right now: thousands of big box stores are closing, while online retailers are booming.

People are buying differently now … and that includes real estate.

It’s possible to find and bid on properties electronically, rent apartments online,  and even buy properties … all without physically seeing them.

Ken projects brokers will need to make themselves resources in an age where heaps of information reside online.

You figured out a way to show apartments without labor. Tell us about that.

Ken’s company has actually moved away completely from paid advertising.

Their strategy now has two parts.

First, they’ve moved toward community and blog-based awareness. Ken has a team that manages his company’s digital presence and writes blog posts.

As soon as they started blogging, he told us, their traffic went up.

Second, they’ve reallocated the money they spent on advertising to call centers that help answer questions and set up appointments.

Interested potential tenants can make an appointment and then just show up at the property. Although every property has an office with a property manager or two, prospective tenants can look at open model units on their own.

This gives people the option to engage how they want, then ask questions after. And, it means a property manager is always in the office.

What’s your advice for newbies?

“I believe in my soul that real estate investment is the greatest thing,” Ken told us. “There’s nothing better.”

Ken’s lifestyle attests to that. He takes several months off every summer to travel with his family … and the money still comes roaring in.

For Ken … and for many others … real estate investing means financial freedom.

Ken’s advice? “Start how I started.”

Ken started with a single two-bed, two-bath condo. He worked on the ground, getting to know every aspect of the real estate business.

Fifteen years later, he’s living proof of the benefits of real estate investing. He now co-owns a company with 350 employees, builds his own units, and has hundreds of investors.

To be successful starting out, first get educated, Ken says. “People invest in us for what we know and what we stand for.”

Then, “Jump in.” You have to start somewhere.

The timing matters, the market cycles matter, yes … but ultimately, you just have to DO it.

A stellar example of smart, successful investing

We’ve learned a lot from Ken over the years, and we think Ken has a lot to offer to you, too.

Ken was the first person to help us think about strategic market selection. We realized there was a strategy to choosing markets.

Success wasn’t actually just dumb luck.

Ken was looking at geographies in a way that made sense, and now he’s looking at market cycles the same way.

He’s not buying right now … but not because he doesn’t have the money. He’s simply unwilling to compromise his company’s needs.

Of course, if you’re like Ken, the temptations you’ll face are many.

There’s pressure to perform from investors and employees. There’s the thrill of the deal.

Not giving in to those temptations is one of the reasons Ken is so successful.

He’s figured out a way to channel his DESIRE for acquisition into his current portfolio … by fixing, leveraging, remodeling, improving, and generally taking his investments to the next level.

Ken uses his time and his team to focus on ways to bring quality up and costs down so he can squeeze every penny possible from his holdings.

And he never neglects the human factor. His properties provide a great environment for tenants.

When the market pulls back, he’ll be prepared.

We like to say that “There’s no perfect investment, but real estate is the most perfect you can get.”

Ken started his entire journey with a single duplex. Look where he is today.

Wherever you are in your investment cycle, we hope Ken’s journey inspires you!


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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