8/7/11: August and the Economy Part 1 – Macro Market Perspectives from Two Mega Players

The aftermath of the debt ceiling vote and the subsequent S&P downgrade just adds to the drama surrounding the U.S. economy.

When you add the European debt crisis, talk of a QE3 on the heels of QE2, plus gold prices hitting record highs – it’s certain August 2011 will be remembered as a time when the entire world focused on economics.

Real estate investors from Mom and Pop to REITs are watching carefully to see what will happen with interest rates, taxes and job creation. The difference is that the mega players have huge research departments and access to the best information and analysis.

Wouldn’t you like to know what the big players are thinking? The Real Estate Guys™ are here to help!

We travel the world to capture the interviews you won’t hear anywhere else. We’re dedicating the entire month of August to bringing you insights and perspectives from economists, scholars, fund managers – and even a few politicians!

At the microphones for this exciting first installment of August and the Economy:

  • Your hot August host, Robert Helms
  • Your not so cool co-host, Russell Gray
  • Special guest; U.S. Global Investors CEO and Chief Investment Officer, Frank Holmes
  • Special guest, Renowned Market Analyst and Editor of The Wellington Letter, Bert Dohmen

This is an episode you’ll want to listen to more than once – and probably with a note pad.

Frank Holmes oversees over $3 billion (with a “b”) of assets and 4 of his funds are in the top 25 best performing.  We think that means he’s qualified to have an opinion about economic issues.  Of course, his focus is stocks and bonds, but we’ve learned that the stock, bond, commodities and real estate markets are all interrelated. The mortgage meltdown and subsequent (and unprecedented) decline in U.S. real estate values was directly tied to what was happening in the bond market.

Bert Dohmen is a renowned market analyst with over three decades of experience.  More importantly, he boasts an impressive track record of having accurately predicted the start of every recession over the last 33 years.  We asked him his secret and he answered, “Technical analysis”.

Really?  Our friend Robert Kiyosaki (who’s agreed to join us live and in person for the entire week for our 2012 Investor Summit at Sea™) has been talking about the importance of technical analysis for real estate investors.  So it’s something we’ve become very interested in.   Watch for more on this topic in the weeks and months ahead.

For now, listen in and discover what some of the biggest brains in the business of managing money think about where we are, where we’re headed and what’s likely to happen next.

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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.

7/24/11: Raising the Roof – How the Great Debt Ceiling Debate Impacts You

The U.S. debt ceiling debate of 2011 is one of the biggest financial stories since the mortgage meltdown set off a chain reaction of quantitative easing, government stimulus and swelling deficits.

For the average person, a lot of this is so big and far away from Main Street, that watching, waiting and wondering seems like the best you can do.  A few real adventurous souls are lighting up social media with political rhetoric and semi-serious calls for revolution.

But we’re just real estate guys.  Politics is about what SHOULD happen and who’s to blame when things go sideways.  We prefer a more practical discussion about what IS happening, what is LIKELY to happen and what we can do in response to either avoid loss or make money (or both!).  Let the politicians and the pundits solve the mysteries of the universe.

In the studio for a practical discussion of the great debt ceiling debate:

  • Your practically perfect host, Robert Helms
  • The partially politically incorrect co-host, Russell Gray

For this episode of The Real Estate Guys™ Radio Show, we take a look at the debt ceiling debate and what it potentially means for real estate investors.  And if you happen to be listening after some or all of the dust has settled, it’s still worth tuning in because this isn’t the first time Uncle Sam has faced this dilemma.  And it’s a safe bet it won’t be the last time.

Meanwhile, for those that are glued to their TV set watching the whole sordid affair unfold, we took some time and prepared a series of blogs on this issue.  Well, okay.  It’s more like a mini-book.  But if you’re interested in understanding how the deficit, the bond market, the Fed, interest rates and inflation are all inter-related, them watch for our special series of articles on The Great Debt Ceiling Debate.

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The Real Estate Guys™ Radio Show and podcast provides real estate investing news, education, training and resources to helps real estate investors succeed.

5/15/11: Smart Money in the New Economy – Empowering Today’s Entrepreneur

As Joel Grey and Liza Minnelli sang in Cabaret, “Money makes the world go ’round”!  And, as we all found out in 2008, when the money stops moving, everything stops.

So for the last three years, we’ve paid extra attention to the macro-economic factors which affect the availability and cost of capital.  It’s become apparent that conventional money remains constipated because, in spite of ridiculously low interest rates, capital is not yet flowing.  Banks remain extremely cautious.  And when they can borrow from the Fed for next to nothing, they don’t really have a sense of urgency to make loans.

However, the need of the marketplace for money to operate remains strong.  Couple this with the need for investors to get yields on idle capital, and there’s an obvious opportunity.  We’ve dedicated several shows to taking a closer look at opportunities in private capital.  This episode continues that theme as The Real Estate Guys™ head to New York to get perspectives and coaching on organizing private money as a way to cash in on the many bargains available in today’s real estate and note markets.

Behind the mobile microphones on location in the great Northeast:

  • Your host and radio Cabaret operator, Robert Helms
  • Co-host and aspiring, but awful, Cabaret dancer, Russell Gray
  • Special guest, attorney and mayor, Jon Hornik

Before a private capital fund solicits deals and moves money, the organizers meet with an attorney to set the whole thing up.  So, although anecdotal, if such an attorney experiences an increase in requests to set up these funds, it’ an indicator of capital formation.  And when capital forms, it’s for the purpose of moving.  We always want to be in the flow of money, so we’re very interested in Jon’s comments about what he’s observing – since he’s on the front end of the private capital formation cycle.

Of course, we aren’t merely spectators, so when there’s opportunity in the marketplace, we want to get in on the action.  So we also make sure to pick Jon’s large and experienced brain for tips on how to set up and operate a successful fund.

So whether you’re a market watcher wanting to get a feel for the flow of capital, or you’re an aspiring fund former, listen in on our informative interview with attorney Jon Hornik.

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The Real Estate Guys™ Radio Show provides real estate investing news, education, training and resources to helps real estate investors succeed.

5/8/11: Healing America…One House at a Time

Investors are playing a vital role in helping the housing market heal.  But who are these investors and how are they doing it?

To find out, The Real Estate Guys™ get face to face with the CEO of a distressed property wholesaling company that “re-allocates” over 200 houses a month.

In the radio ER for another heart-stopping episode:

  • Your host and doctor of dialog, Robert Helms
  • Co-host and bed-pan boy, Russell Gray
  • Special guest, Econohomes CEO, Jeff Ball

It seems the last decade has more than its fair share of disasters, including Katrina, the Gulf Oil spill and the Japanese tsunami – to name just a few.   And of course, how could we forget the Great American Real Estate Recession, which still seems to be years away from bouncing back.

What they all have in common is the human effort which plays such a vital role in cleaning up and rebuilding – and the fact that most of that “grunt work” goes largely unnoticed by the rest of the world.  Still, slowly, over time, because of the tenacity and talent of the individual workers, eventually the rest of the world sees recovery.

Of course, those closest to “ground zero” get to see the progress first – and they know better than anyone how far and how fast the healing is happening.

So when it comes to real estate in America, and the housing market in particular, who’s closest to the action?

You could make the argument that real estate agents or REO portfolio managers for lenders are pretty close.  But what about the individual investors who go into a devastated market and begin to buy, repair and re-sell or rent out abandoned and often dilapidated houses?  Those brave souls are arguably the closest to the trend since it’s their own initiative, planning and resources that make everything else happen.  But no one sees the fruit of their ambition until it shows up later as transactional activity.  And because they’re mostly all independent small time operators, they themselves don’t even see the collective trend they are creating.

Fortunately, Econohomes CEO Jeff Ball commissioned a study of over 1,000 individual investors to find out who they are, what they’re doing and where they’re finding inventory.  Listen in as Jeff discusses the report and what he sees for the housing market from his perspective.  And if you listen all the way through, he’ll tell you how you can get a free copy of the report for yourself!

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

3/20/11: Finding Your Unfair Advantage with Robert Kiyosaki

Since we’re big shot jet-setters, we thought we’d fly our semi-private jet (the one we share with with 135 other Southwest Airlines passengers) over to Phoenix to visit Robert Kiyosaki in his Rich Dad studios.

The author of mega-bestseller Rich Dad Poor Dad has a new literary derivative (that’s financial lingo for “book”) called Unfair Advantage – The Power of Financial Education. In fact, on March 31st, there’s a kick off event in Los Angeles by the same name.  We’d be there ourselves, but we’ll be in Fort Lauderdale prepping for our Secrets of Successful Syndication seminar and our 9th Annual Investor Summit at Sea™.  And there’s still time for you to join us.!

Whew.  Now that we have all the shameless self-promotion out of the way, let’s talk about this episode of show.

In the Rich Dad studios to talk about finding your unfair advantage in financial competition:

  • Your host and the fairest of them all, Robert Helms
  • Your fair (on a scale of poor-fair-good-excellent) co-host, Russell Gray
  • Author, speaker and entrepreneur, and most excellent dude, Robert Kiyosaki

It’s really unfair to say “unfair” advantage, since everyone has the opportunity to get a solid financial education. But in the real world, since so few people are willing to put in the time to learn, those with a good financial education appear to operate with an unfair advantage.  Kiyosaki says that’s why the rich get richer and the poor get poorer.

Those armed with financial education are able to make money in down markets as well as up markets. So while most people’s fortunes rise and fall with the ebb and flow of financial cycles, the financially astute just keep ratcheting up and up.  That’s the side we want to be on!

Financial competence isn’t simply a matter of information and how to. Every time we talk with Robert Kiyosaki he emphasizes the investor’s mindset.  His signature book, Rich Dad Poor Dad, is a study in the subtle but critical differences between how the rich and poor think about, value and handle money.  We’ve met many people who testify that Kiyosaki’s philosophies have changes their lives.

Kiyosaki tells us that “when the amateurs get in, the pros get out” and “the late-comers always gets killed”.  Then he tells us whether he thinks now is a good time to getting in to real estate.

The Real Estate Guys™ are very fortunate to have enjoyed a great relationship with Robert and the Rich Dad organization going on 8 years now.  We’ve read most of his books, interviewed many of his advisors, gotten to know several of the folks in the Rich Dad offices, and attended several of the Rich Dad conferences.  Of course, Rich Dad’s real estate advisor, Ken McElroy was part of our faculty on our 2010 Investor Summit at Sea and is coming back for the 2011 edition (there’s still room for you!). 🙂

All this to say that we’ve developed a strong respect for Robert Kiyosaki and the Rich Dad team.  More, we’ve found their message to be inspiring and empowering – not just for us, but for many of our listeners.  So whenever we have the opportunity to sit down with Robert Kiyosaki, we’re interested in whatever’s on his mind.  Of course, we brought the microphones along to capture the conversation for you.  We really enjoyed our visit and trust you will too!

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  • Don’t miss an episode of The Real Estate Guys™ radio show.  Subscribe to the free podcast!
  • Stay connected with The Real Estate Guys™ on Facebook!

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

3/13/11: Commercial Lending Challenges and Opportunities – Be the Brainer

When we went to the National Hard Money Conference in Las Vegas, we met a guy who had over 30 years in commercial hard money lending.   Based on that alone we wanted to talk with him.

But because we’re busy prepping for our Secrets of Successful Syndication seminar, we were especially anxious to get perspectives from a 30 year vet.  After all, we think it’s a great time for real estate entrepreneurs to step in and help heal a decimated economy by getting capital flowing into properties and projects.  But what does an industry insider think?

Before leaving Las Vegas, we set up our mobile studio.  We wanted to make sure that what happened in Vegas didn’t stay there.  Behind the microphones for this episode of The Real Estate Guys™ Radio Show:

  • Your hard money host, Robert Helms
  • Your semi-hard money co-host, Russell Gray
  • Special guest, founder and CEO of Blackburne & Sons and C-Loans, George Blackburne

Just like in the grocery, hardware and car part businesses, the financial industry has suppliers, wholesalers, retailers and consumers.  But the product being distributed is money.

Most people are familiar with banks, credit unions, mortgage companies and the types of retail transactions they engage in.  Some people (like small business owners) are somewhat familiar with local business banks and other institutional sources of commercial capital.  But most people have only a vague understanding of private capital and the term “hard money” – especially when it comes to small commercial businesses and properties.  So we open the show with a quick overview of the term “hard money” and a quick discussion of how it fits into the financial food chain.

But we don’t take long to get our guest talking about his 30+ years in the business and what he sees going forward.

George Blackburne has been helping guide private money into local projects and properties three decades.  Along the way, he’s seen a lot of changes.  Being an entrepreneur, he saw a need in the commercial funding business which emerging technology could solve.  So fourteen years ago, he founded C-Loans, an on-line directory that matches borrower and brokers with sources of funding.  We thought is was such a cool idea, we’re adding it to our Resource Center.

In addition to being a money guy and an entrepreneur, George is also a lawyer licensed in two states.  In other words, he’s a pretty sharp guy.  So we were very gratified when he told us he thought 2011 would be “the year of the hard money lender”.   It just made us all the more certain that now is the time for all good real estate entrepreneurs to come to the aid of their country and consider getting into the private capital business.

While many are frustrated waiting for corporations to create jobs and banks to start lending to small business, entrepreneurs can create a job for themselves and others while getting into the game of investing private capital.

There are tons of distressed assets available for pennies on the dollar, and deserving projects just waiting to be funded.  And while banks are only interested in the “low hanging fruit”, (the “no brainers” as George calls them), there are lots of “outrageous profits” waiting for those are willing to “be the brainer”!

We think this era will be remembered not only as the “year of the hard money lender”, but as one of the greatest opportunities to build wealth with real estate that we may see in several decades.  Check out this episode and see what you think!

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