Investor Summit at Sea 2018 – Part One

This is our 16th year hosting our annual educational event … the Investor Summit at Sea™. Guests and faculty have all disembarked from a wonderful week learning about the future of money and wealth.

We didn’t want our wonderful listeners to miss out entirely on the treasure trove that is the Summit … so we hosted a live recording session on board the ship!

In this episode of The Real Estate Guys™ show, we chat with some of our illustrious faculty members. Listen in to hear their reflections and insights on our week at sea.

You’ll hear from:

  • Your adventurous host, Robert Helms
  • His seasick co-host, Russell Gray
  • Robert and Kim Kiyosaki, the brains behind Rich Dad, Poor Dad
  • G. Edward Griffin, author of The Creature from Jekyll Island
  • Securities law attorney Mauricio Rauld
  • Victor Menasce, author of Magnetic Capital
  • Glen Mather, president of NuView IRA

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Lessons from Robert and Kim Kiyosaki

It was a pleasure to have the always inspiring Robert Kiyosaki and his wife, Kim, on board for the Summit. “It’s more important than ever before to come on Summit at Sea because so much has changed,” Robert says.

The duo enjoyed hearing from experts with many different points of view. “The conversations happening behind the scenes are the most important part,” Robert adds.

Lucky attendees were able to hear from Robert … and female attendees joined Kim in a women-only breakout session about finding financial freedom.

We asked Robert and Kim about their opinions on educating younger people … and why it’s important to have youth at the Summit.

“It’s important we teach the younger generation,” says Robert. “We need to teach kids to look at the world from a different point of view. Most kids haven’t been trained to see a problem as an opportunity.”

Kim adds, “What they teach you in school is the opposite of what it takes to be successful.” According to Kim, school teaches you there’s only one right answer … and you should never make a mistake.

But investors need to learn there are many right answers … and mistakes are the best way to learn. Plus, says Robert, “Student loan debt will never amortize on you.”

Robert and Kim recently celebrated the 21st birthday of Rich Dad, Poor Dad. “The message remains the same,” says Kim. Lessons like “your house is not an asset” and “savers are losers” still ring true, Robert says.

A red pill from G. Edward Griffin

G. Edward Griffin gives this review of the Summit: “I’m amazed at what I learned and that so many people learned so much!”

Edward walked us through the process of writing his book, The Creature from Jekyll Island. He almost gave up twice because he thought he couldn’t do the content justice … but he persisted. Today the book is on its 48th printing!

What about the young people? “Young folks can buy into the idea that the banking system is stealing from them in a legalized fashion,” Edward says. “We’re at a huge tipping point.”

Edward created the Red Pill Expo to get the word out to people that things aren’t always as they seem in the world of money and banking. “You have to be aware before you can do something about the problem,” he says.

The Expo aims to help people “take the red pill, break out of the matrix, and see reality.”

Edward had some great words of wisdom for everybody listening … “We have within all of us the power to understand that most of the great barriers in life are not the barriers we think they are.”

Three experts on the power of community

The author of Magnetic Capital, Victor Menasce, reports, “When you break bread with people, the level of connection and the environment is amazing.”

Attorney Mauricio Rauld agrees. The Summit provides attendees with the opportunity to “absorb knowledge like a sponge,” he says. “It’s an amazing environment.”

Faculty member Glen Mather believed in the power of the Summit so much he brought his first-time property buyer daughter so she could learn too.

Glen has seen the Summit work its wonders firsthand … on himself. “I can’t listen to these guys without thinking, ‘There is so much we have to change,’” he says.

We think getting together to learn is incredibly valuable … if we didn’t, we wouldn’t have created the Summit at Sea™. We offer materials like our podcast and educational reports as the start of a relationship … with the hope that listeners will take that relationship to the human level.

Gathering as a community is a powerful experience … and experiences like the Summit allow both fledgling investors and experts alike to learn new information, open their minds to ideas, and form life-long connections.


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.

Clues in the News – Market Peaks, Credit Scores, and Student Loans

This edition of Clues in the News is coming to you from Bozeman, Montana, where we just wrapped up an insightful weekend at the Red Pill Expo with thought-provoking author G. Edward Griffin and other amazing speakers.

Perhaps the mention of this conference provokes skepticism. Why attend, you ask?

We’ve learned that as real estate investors, it’s crucial to examine information from all sides instead of taking a single account at face value.

That’s why we found the expo so exciting. It’s also why we read the news every day … and then examine it with a critical eye to see what lies between the lines.

In this all-new edition of Clues in the News you’ll hear from:

  • Your at-the-helm host, Robert Helms
  • His (tired of being kicked in the side!) sidekick, Russell Gray

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The rise (and fall?) of short-term vacation rentals

We find it helpful to look at the real estate investing world from both a big-picture perspective and a smaller local perspective. Often, local news gives us helpful insight into currents running underneath the big waves that make national headlines.

That’s why we took a look a Bozeman’s local newspaper, the Bozeman Daily Chronicle, where we found an interesting article about short-term vacation rentals.

Short-term rentals are a craze that has been sweeping across the nation over the past couple years … and local governments have responded in various ways as these rentals have risen in popularity.

Although Bozeman isn’t a large town, many residents and businesses are concerned about this issue.

Why? Well, think about who’s threatened by rentals offered through companies like Airbnb. Hotels.

A pragmatic investor or businessperson is aware they may meet resistance to their business model … and that’s what’s happening in Bozeman.

Companies threatened by these smaller rentals are taking the issue to local politicians … who are backing them up.

Think about it … who has a bigger influence on local economics, and thus a bigger say in local politics? The one-property Airbnb owner, or the hotel operator?

Investing is more than just making deals. An important piece of being a successful investor is being aware of the local political environment, including tenant-landlord laws and local issues that may affect you.

The lesson? It’s great to be optimistic and hope for sunny skies, but always pack an umbrella in case you run into rain (or resistance).

Market peaks continue to soar higher

When we took a step back and zoomed out to see the nation as a whole, we noticed a trend we’ve been seeing for a while … escalating home prices across the board.

Although home prices continue to rise, there’s a lot of variation in different markets. A close look at the data in Harvard’s Annual Housing Report tells us that while home prices in the 10 most expensive metro areas have risen a whopping 63% since 2000, while prices in the 10 cheapest areas have grown by only 3%.

That’s a big difference!

We think it’s important to dig deeper and find the over-performers. Looking at information at the macro level is great … but it’s up to you to take that information and move toward the micro.

Look at the nation … then examine your specific town. You may find surprising disparities, even between different neighborhoods in one city!

We zoomed out even further to see if the housing boom was a U.S.-only trend and found an article from an Irish newspaper that stated the average cost of buying a house was €338,000 (about $384,000).

That amount is nine times the average Irish salary!

Big, overheated markets aren’t a problem specific to America. They’re a worldwide trend.

As this trend becomes more obvious, journalists are taking note and coming up with their own interpretations of the data to satisfy the curious public.

We find it helpful to remember news isn’t hard data, and it isn’t the answer … it’s really the question.

The news gives you a starting place to ask yourself: Does this topic affect me? And what does this article really mean? How can I dig deeper?

We went through this process with a CBS article that contained advice for home buyers in the current market.

Many of the article’s statements were simply the opinion of the journalist. And although the journalist offered some helpful advice, we often find professional journalists don’t have the buy-in to catch some of the most important dynamics active in the marketplace.

That’s why as an astute investor, YOU have to be prudent and pay attention.

Rising home prices may mean it’s time for you to take some chips off the table. Depending on trends in income versus rent prices and other numbers, they may mean something else.

Either way, it’s up to you to do the math!

The cost of renting versus buying

If you’re a landlord, you know it may not make sense to buy rental properties in areas where tenants can afford to buy homes.

We found this infographic eye-opening. Although it only cites average numbers, it’s obvious that today buying a home is more affordable compared to renting than it ever has been.

What does that mean for you? It means you have to watch your numbers.

Analyze your own tenant base. Ask yourself the following questions:

  • What is the income-to-price ratio?
  • How affordable is your housing for your tenants?
  • Do you have tenants with high credit scores who will be able to get easy loans?
  • Do you have a competitive advantage over other housing options?

The overall idea is to find tenants that have income durability, but won’t skip when they can buy a house. One option is to invest in rent-to-own properties.

Finding that balance can be tricky, but if you’re paying careful attention to your numbers, it’s doable.

Rising mortgage rates and plummeting credit scores

Credit rates affect new homebuyers’ abilities to get loans and buy houses. In a recent article, we read that for every increase in mortgage rates, credit scores go down.

As real estate investors, we always want to understand the ratios of mortgage rates and interest rates.

We have no control over these rates … but they definitely affect what we do as investors.

So what do these changing numbers mean? Is there any correlation? We don’t necessarily think so.

What we do know is when lenders lower barriers to entry by decreasing the credit score required to get a loan or nudging the required debt-to-income ratio, it can be a warning sign credit markets are starting to get desperate.

When you start to see lenders giving borrowers up to 50% of their income, that’s when you know something problematic is happening.

A dimming outlook for brick-and-mortar retail stores

We’ll look at this next issue with the assumption that with the rise of mega-sized online retailers (think Amazon), retail is not the greatest place to be right now.

With this dimming retail outlook comes a push for shorter leases.

When retail tenants consider their options, they ask themselves a basic question: Do I pick a longer lease for more stability, or a shorter lease I can get out of sooner?

The trade-off of choosing a longer lease is that the landlord decides what the future 5-10 years will look like in terms of rate increases, even if those don’t match up to reality.

Retail tenants also have to consider how the location they choose will drive traffic.

If big-box stores pull out, can smaller retailers expect the same regular traffic? Uncertain about the future of these stores, more smaller retailers are pushing for shorter lease terms.

If you’re not in the retail business, you may be wondering how this affects your residential properties. Ask yourself, How many of my residents work at these stores? What will happen when local retailers shut down and my residents are out of work?

Big sea changes for retailers can also mean big changes for you. Retailers typically choose to close stores in places that are weak for core drivers. If you have a tenant demographic similar to the store’s shopper demographic, it may be insightful to look at where stores are shutting down, and why.

As an outsider, you’re not privy to why the big dogs do what they do, but you can observe what they’re doing and come to your own conclusions.

New options for homebuyers with student debt

We all know student debt is increasingly becoming a bigger issue amongst millennials.

This younger generation often forgoes buying homes due to high amounts of student debt.

An article in the Wall Street Journal reported on a new option backed by Fannie Mae that allows homebuyers with student debt to refinance and convert their student loan debt to housing debt.

This program gives younger buyers collateral … and may make them more likely to choose to buy a home.

The program could also drive home pricing in your area, depending on the makeup of the local population.

If you don’t have student debt, this program may not seem relevant … until you stop to consider the bigger picture.

That’s it for now until next week, when we talk about a major disruption in real estate markets!


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.

This might BLOW YOUR MIND …

Join G. Edward Griffin, Robert Kiyosaki and a host of other notable speakers for an event that will BLOW YOUR MIND …

If you’re familiar with the 1999 sci-fi movie The Matrix, you may recall the red and blue pills.

The blue pill allowed the hero Neo (played by Keanu Reeves) to remain in a computer induced illusion which SEEMED like the real world.

But it was fake … and hid the reality of Neo’s enslavement.

The mysterious mentor Morpheus (Laurence Fishburne) challenged Neo to take the red pill and “free your mind” to see the much harsher reality …humans enslaved by machinery.

Neo took the red pill.  Once enlightened, he became engaged in a very real world fight for true freedom.

But for one of Neo’s comrades, the artificial prosperity of slavery was too tempting.  It was easier to enjoy faux freedom than fight for the real thing.

What does this have to do with real estate investing?

Maybe nothing.  Maybe everything.

G. Edward Griffin’s iconic book, The Creature from Jekyll Island – a Second Look at the Federal Reserve, pulled back the curtain on the origins, mechanics and motivations of what is arguably the most powerful institution on the face of the earth.

It’s a VERY controversial work.  Not everyone agrees.  But it opens the imagination to the possibility there’s more to the Fed than meets the eye.

Some lay the blame for the dot com stock bust and subsequent real estate bust and mortgage meltdown directly at the feet of the Fed.

This alone makes the Fed worthy of study by any serious real estate investor.

The Fed could just be the tip of the iceberg …

The foundation of real estate riches is private property rights.

Every real estate investor should be VERY aware of any infringement upon their rights to own and profit from property.

But what if there are some people who believe your rights to profit from your property should be limited?

What if they’re working behind the scenes to infringe on your property rights?

Anyone paying attention knows this has been going on for some time.

It started innocently enough with eminent domain laws, which subordinated the individual’s property rights to the “greater good” based on the government’s best judgment.

Of course, there’s a long list of abuses of eminent domain.  But until it gets close to home, no one pays attention.

Later, the wars on drugs and terror effectively suspended constitutional due process … allowing the government to seize property first and prove guilt later.

Not surprisingly, there’s a growing list of abuses here also.

But again, so long as it’s the “other” guy and not you, it’s (maybe) okay.

Today, there are global environmental treaties being contemplated which may further erode your private property rights.  Where will they lead?  How will YOU be affected?

We’re attending the Red Pill Expo to find out.

More than just money …

On our 2016 Investor Summit at Sea™ we did a special panel discussion called Health – The Ultimate Wealth … which turned out to be one of the most popular sessions.

After all, what does it profit you to gain a fortune in real estate but lose your health?

This Summit session was born out of a personal crisis … when one of our very own was diagnosed with stage 4 cancer.

This horrible event led to an urgent study of the disease and treatment options, and ultimately to a shocking discovery about alternative treatments which are largely hidden from cancer patients.

We’d heard the stories.  But until we experienced it first hand, it just seemed like so much conspiracy theory.

But it’s not.

And it made us wonder … what other really important things do we not know about?

Standing on the edge …

Our friend and favorite teacher, Robert Kiyosaki, has taught us the importance of looking at BOTH sides of an issue … by standing on the edge of the proverbial coin.

Legendary shock rocker Frank Zappa said it best … “The mind is like a parachute.  It only works when it’s open.”

So we’re heading to Bozeman, Montana on June 23-24 for the Red Pill Expo.  We’re not sure what we’ll hear or whether we’ll like it.

But we have immense respect for both G. Edward Griffin and Robert Kiyosaki.

So when Robert Kiyosaki told us he’s rearranging his vacation to be in Bozeman, that was good enough for us.

Besides, the worst thing that happens is we’ll see a beautiful part of the world, and re-connect with our friends Ed Griffin and Robert Kiyosaki.

And who knows?  We might just pick up another piece of life-changing information or make yet another valuable relationship.

As Smash Mouth sang in All-Star, “You’ll never know if you don’t go.”

Click here now to join us at The Red Pill Expo.


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.