Tax Changes Real Estate Investors Need to Know About

We’re back with one of our favorite people … CPA Tom Wheelwright!

Tom is here to share important updates on current and proposed changes to U.S. tax law as part of the war against COVID-19. 

We’re also discussing the details … and potential repercussions … of proposals currently being floated around during this controversial election year. 

There are changes that real estate investors like YOU need to know about. 

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

  • Your up-to-date host, Robert Helms
  • His taxing co-host, Russell Gray
  • CPA and tax expert, Tom Wheelwright

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Let’s talk about taxes

One of the biggest elements that affects cash flow and overall return of real estate investments is taxation. 

And yet … nobody really likes to talk about it. That needs to change! There’s lots you can do to reduce taxes and make more money. 

Our good friend, CPA Tom Wheelwright, always says, “If you study a nation’s tax code, you can see exactly the behavior they want, because they reward it.”

The tax code is a series of incentives. 

There’s so much going on right now in the world … and in an election year, a lot can happen. 

We don’t have a political argument to make of any kind … but when you start talking about tax policy and you have different parties with different opinions, politics are going to come up. 

We’re here to wrap our minds around some of the proposed tax changes that real estate investors must understand. 

New tax changes you should know about

Going all the way back to Obamacare, there was a tax impact for real estate. Then, the Trump administration came in and made the first major overhaul. 

It’s no secret that with a real estate guy in the White House … we got some very favorable breaks for real estate investors. 

Then, the COVID-19 crisis impacted the tax code. 

Basically, since 2008, the tax code has been a roller coaster. There have been extreme changes in public policy, public behavior, and financial markets. 

All of that means that as a real estate investor, you’ve got to be looking a little bit farther down the road. And, you need to be well-advised by a great tax professional. 

Tom Wheelwright is here to get that conversation started … but remember to sit down with your own tax advisor and get their expert views for your personal situation. 

There have been some really important changes recently for real estate investors. The most obvious one was the qualified improvement property change. 

This was in the Cares Act correcting a mistake in a 2017 act in which the government didn’t include leasehold improvements on commercial property as qualifying for bonus depreciation. 

The Cares Act now said that they do … and you can take advantage of that retroactively all the way back to 2018. You can amend your return, and there can be a lot of money in that. 

The Cares Act also said that if you had to reduce your hours … either business hours or working hours … because of the pandemic, you can pull out up to $100K from all your accounts put together. 

Then, you have two choices. You can either pay tax on that money over three years or you can put that money back in three years and not be taxed at all. 

“You could literally take money out, buy a property, take care of the property, sell the property, and put the money back. Or, you could keep the property and borrow against the property and put the money back,” Tom says. 

Tom adds that anybody who is a real estate investor and seriously doesn’t want their money tied up in their IRA or their 401K should really look into this and see if they qualify. 

The other big change involved the net operating loss carryback. 

In 2017, real estate investors lost the ability to carry back net operating losses. In 2020, we gain that ability … and we gain it for 2018, 2019, and 2020. 

And, now it’s a five-year carryback. We’re talking about going back to 2013, 2014, 2015 … years that were really good years for a lot of people. 

And let’s say you weren’t a real estate professional in those years and now you are … you’ve got bonus depreciation. You can carry back to when you weren’t a real estate professional to offset your income and get a refund. 

Tom says that this particular benefit isn’t popular in the House of Representatives … so you better look into it quickly if you’re interested. 

The other tax benefit that people don’t often talk about is the charitable deduction tax benefit. 

Typically, individuals can only deduct up to 60% of charitable contributions … in 2020, it’s a hundred percent. 

“If you want to give all your money away this year, the government says to go for it. They’ll give you a deduction for it,” Tom says. 

Tax changes that could be coming

The tax changes that real estate investors got under the Trump administration were favorable to a lot of folks. 

Now, with an election year, Joe Biden has come out with his own tax plan and ideas. 

“Biden’s tax plan is basically a tax everything tax plan,” Tom says. “Really, he would eviscerate the tax law if he had his choice, which leads me to personally wonder if he understands the tax law at all.” 

Tom says that, for example, all the real estate benefits would go away. It wouldn’t eliminate cost segregation, but it would eliminate bonus depreciation. 

Biden has also proposed eliminating 1031 exchanges, the basis step up when you die, and oil and gas tax benefits. 

But remember, President Obama also proposed eliminating a lot of these tax breaks. Just because they are proposed doesn’t mean they’ll get enacted. 

Either way, it’s important for real estate investors to be vigilant and stay tuned in. 

For more on tax changes and how they can affect you … 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.


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The big story is getting BIGGER …

As Ernest Hemingway famously wrote in The Sun Also Rises …

“How did you go bankrupt?”

“Two ways: Gradually, then suddenly.”

Of course, this isn’t the only great excerpt from this classic book …

“Everyone behaves badly … given the chance.”

These two excerpts sum up the world’s financial condition … and the policymakers who’ve been driving the ship … into the ground.

More of Hemingway’s writings seem fitting for this day and age …

“You can’t get away from yourself by moving from one place to another.”

“Do you ever get the feeling that all your life is going by and you’re not taking advantage of it?”

Ahhh … where to begin?

Last time, we said silver is signaling weakness in the dollar, which at the time was the only currency not already at all-time lows against gold.

Of course, the ink was barely dry on our computer screen when the dollar dropped hard against gold … as gold blew through its record high in dollars to flirt with $2000 an ounce.

If you agree with J.P. Morgan when he told Congress, “gold is money” … which relegates the dollar to merely a currency useful for trading (at best) …

… then you probably understand gold didn’t moveThe dollar fell.

Of course, ever since Nixon broke the global gold standard in 1971, currencies “float” … which means currencies change value in relation to each other.

If that’s confusing, that’s because it is. And when you lose your bearings, it’s hard to tell up from down.

Imagine jumping out of an airplane with a team of skydivers. You’re all in free fall. But as you look at each other, you appear to be floating together.

But if someone opens their chute and slows their descent while you don’t … from your vantage point, they went UP. But did they?

Of course not. They’re just falling more slowly than you.

The reference point of the solid ground rising up below is how you know. The ground appears to be rising, but it’s not moving up. You’re falling. And so is the person who pulled their chute and appears to you to be rising.

So if you’ve ever wondered how gold could be rising in one currency and falling in another, now you know.

Gold is the solid reference point which exposes what’s really happening with currencies. It’s accountability.

That’s why we watch it … and think you should too.

Right now, gold is shining a bright light on something all investors … real estate and otherwise … should be paying attention to.

But don’t take our word for it. Check out these recent headlines …

Goldman Sachs boosts gold price target, says the dollar’s reserve status is at risk
– Yahoo Finance, 7/28/20

Goldman warns the dollar’s grip on global markets might be over
– Bloomberg, 7/28/20

US dollar at risk of sudden collapse? Ex-IMF official warns “blow-up event” could sink currency as debt mounts
– South China Morning Post, 7/24/20

How might the dollar lose its reserve status? How might America go bankrupt?

Gradually. Then suddenly.

Meanwhile, professional money watchers are baffled …

Gold prices hit all-time high, and it’s a bit of a mystery why
– MoneyWatch via CBS News – 7/28/20

Yes. Things make no sense when you have the wrong reference point.

When you can’t think outside the dollar … when you think the dollar is eternal, immovable, invincible, the center of the monetary solar system … it’s confusing.

A similar confusion plagued astronomers who believed the sun and planets revolved around the Earth …

Retrograde motion [planets moving backwards in orbit] … had early astronomers … thoroughly confused … it was impossible for them to come up with a solution that also fit with the popular idea that Earth was the center of the solar system. Not until … Copernicus placed the sun at the center of the solar system did all that retrograde motion suddenly make sense. – Livescience

We’ve previously discussed ways real estate investors can be directly affected by a falling dollar. So we won’t repeat that here.

But it’s not just real estate investors affected. It’s everyone everywhere …

King dollar’s decline ripples across the globe
Reuters, 7/28/20

“ … adding fuel to a global momentum rally that has boosted prices for everything from technology stocks to gold.”

No wonder Americans are enamored of the stock market … even in the midst of what is likely an economic depression, everything is UP … in dollar terms.

It makes no sense.

This is “asset price inflation” in NOMINAL terms … it takes more dollars to buy the same assets. “Nominal” means in numbers … unadjusted for inflation.

So the nominal value of a 3-bedroom house might go from $50,000 to $250,000. But the actual utility value … how many people it will sleep … is exactly the same. The house isn’t worth more in the real world.

Obviously, when you measure your entire everything in a currency whose value fluctuates, it’s easy to suffer from “nominal” confusion.

In fact, bankers and politicians make their living on creating and capitalizing on nominal confusion.

Nominal confusion tricks people and societies whose wealth is falling and economies are shrinking into thinking their wealth and economies are growing.

Because they are growing … in nominal terms … denominated in dollars. But there aren’t more jobs, more production, more real world value.

Nominal distortions can show “growth” in dollars, while employment, production, and purchasing power all fall.

In real world metrics, wealth is shrinking. The only thing growing is the number of dollars. Trillions of them in fact. Conjured out of thin air.

The cure to nominal confusion is to think outside the dollar …

When you ask Ken McElroy (Robert Kiyosaki’s Rich Dad Advisor for Real Estate) how much real estate he owns … he doesn’t tell you a dollar amount … or even how many properties.

Instead, Kenny tells you how many “doors” he owns. He measures his wealth by doors.

Doors represent the REAL asset … a tenant who goes to work every day and earns a paycheck and sends a third of it to Ken and his investors as rent.

THAT is real wealth.

If you own a 32-door apartment, you have 32 tenants. If you paid $1 million and it goes “up” to $2 million, it’s nice. Equity happens.

But you still have only 32 tenants. You didn’t add anything of real value.

And if everything else is going “up” too, your extra million may not make you relatively richer.

It’s only when you use debt to magnify equity growth faster than inflation that you can become relatively richer.

When you denominate your wealth in units of REAL value … ounces of gold and silver, acres of land, barrels of oil production, tons of agricultural production, number of tenants …

… it doesn’t matter whether you trade in dollars, yuan, SDRs, bitcoin, buckskins, banana peels, or seashells.

REAL assets always have REAL value relative to each other. And when you add units of REAL value to your portfolio, your relative wealth grows.

It’s not about collecting dollars. It’s about collecting real assets.

“Assets minus liabilities equals net worth” works in accounting class and bank loan applications, but not in the real world.

Otherwise, the Federal Reserve could just print trillions of dollars inflate asset prices, and make the United States and Americans rich … nominally.

But it’s the only tool in the Fed’s kit, so they’re printing away. But precious metals say the world isn’t buying it.

Or more accurately, they’re not buying the dollar.

On Main Street, there are folks who look at their Wall Street produced financial statements and THINK they’re rich.

They’re nominally confused. If you own 100 shares of stock in a company whose sales and profits are declining … but the share price doubles in dollars …

… you still own 100 shares of a failing company. How are you richer?

Meanwhile, there are thousands of millionaire-next-door real estate investors with 20-30% of their tenants’ income flowing to them each month … often tax-free … who are richer in a more real, resilient way.

Of course, a depressed economy creates challenges for real estate investors too. There’s no easy street in a crisis.

But we don’t think you need to be afraid of a falling dollar. Just prepared. In fact, if you play it right, you’ll probably end up doing quite well.

Income property, mortgages and precious metals in the right combination are arguably the ideal tools to short a falling dollar and build real relative wealth.

We’ll have more to say on this very soon … stay tuned.

Meanwhile, keep your head in the game. The world is changing from gradually to suddenly.

This isn’t the time to “Wait and See”. It’s time to “Think and Do”.

Podcast: Tax Changes Real Estate Investors Need to Know About

CPA Tom Wheelwright joins us with important updates on current and proposed changes to U.S. tax law as part of the war against COVID-19.

We also discuss the details and potential repercussions of proposals being floated in a controversial election year.

So tune in as we talk tax changes real estate investors need to know about with CPA Tom Wheelwright.


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!

Preparing for the New Realities of Real Estate

We’re chatting with Ken McElroy … Robert Kiyosaki’s very own real estate guy … for a reality check of investing heading into a potential crisis unfolding before our eyes. 

The world is changing … and when it changes, your investment strategy should too. 

We’re all preparing for the new realities of real estate … and we’ve got ideas to share with YOU. 

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

  • Your unreal host, Robert Helms
  • His unprepared co-host, Russell Gray
  • Robert Kiyosaki’s Rich Dad Advisor for Real Estate, Ken McElroy

Listen


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Marching toward a new normal

So much is changing in the world, and that permeates into real estate. 

What is the new normal going to look like? And how can YOU prepare for what’s coming next?

We’re chatting with our good friend, Ken McElroy. He’s the Rich Dad advisor for real estate. 

When Kenny has something to say, we have ears to listen … because we’ve seen over the years that he has been right A LOT more than he has been wrong. 

Ken brings a couple of special talents and perspectives to the party … so to speak. 

One is his tactical experience. He has been in the game for a long time. He has ridden a lot of up and down market cycles, and he is a really down-to-earth, practical guy who can explain things in plain English. 

Kenny is a hands-on guy who runs a team of hands-on people … and he brings with him the big picture insight of his relationship with Robert Kiyosaki. 

Too many people in real estate get dogmatically focused on just real estate … THEIR market or THEIR niche. 

While you do want to know about the markets that you’re in, you also need to get your head out of the weeds and look up at the horizon. 

Ken’s core investing philosophy comes from being a property manager over the years, specializing in B class apartments. 

When he takes these properties on, they’re not in great financial shape … and sometimes not great physical shape either. They need some work to help increase rents and property value. 

Over the years, Kenny’s taught us a bunch of clever ways to increase your net operating income. 

Now, with the normal status quo of things on the fritz in so many ways when it comes to being a landlord … we thought it was definitely time to pick Ken’s brain. 

The effects of COVID-19

If you’ve been listening to us for a while, you probably know a bit of Ken’s background … property management and ownership of thousands of apartment units. 

There’s certainly a lot of concern over tenants losing their jobs, not being able to pay rent, and eviction moratoriums. 

“The truth is, this is part of management,” Ken says. “Management is really easy when tenants are coming in and rents are going up, but when hard times hit is when your true skill and technique gets exposed.”

Right now, Ken says his company has about 8,000 tenants … so when COVID-19 shutdowns happened in March, it hit them pretty hard. 

No one wants to experience a downturn … but it’s part of the game. When downturns happen, you hope that you planned accordingly in the good times to be able to withstand. 

Ken says that about 80% off his tenants were able to continue to make payments. 

Then, about 15% of tenants anticipated having issues paying rent, communicated those issues and were put onto a promise to pay (PTP) program as a way of working with property management. 

The remaining 5% or so were people who didn’t communicate and assumed with what they were hearing from the news that they just didn’t have to pay. 

“We are really trying to work with people. The last thing we want to do is boot anybody out and ruin their credit. The people that are working with us and communicating we know are good people, and so we are doing all we can,” Ken says. 

Moving from renters to property owners, about 5 million people are having trouble with their mortgages. 

Ken says we haven’t even begun to see the potential effects of the virus on this sector … because people with homes are going to fight to stay in them for as long as they can. 

Depending on how long all of this drags on, it could be quite some time before we can visualize the real impact. 

Strategies for the future

Back in 2008 or 2009, we spoke with Ken about how he was strategically trying to pick markets that were B class and geographically near jobs that couldn’t be moved. 

Has his strategic plan changed for when we come out of this height of the pandemic bubble and start to look for opportunities?

“I haven’t seen any statistics yet for 2020, but the patterns of population migration have been very interesting to watch over the last several years. That will definitely play a part,” Ken says. 

If you look at a location like New York City, for example, from many standpoints … housing listing, reduction in pricing, employment … it looks like this area is going to get hit pretty hard. 

We were already seeing pre-pandemic that listings in New York City were down about 57%. People are leaving and going to other places like Florida where they can spend less for more space. 

In general, many people are leaving the city to move further out of town to smaller communities. That may be a big opportunity for the future. 

With remote work, many tenants will no longer be held down to these employment centers and will have the luxury to choose where they want to live. 

So, as we go through and find opportunities after the virus, how do investors make sure they keep their heads on straight?

You have to be practical and realistic about what’s happening. But at the same time, there is going to be a ton of potential for redevelopment. 

Ken predicts that many regional malls and small shopping centers aren’t going to make it … and there will be a lot of single-family homes on the market a year from now. 

That will drive prices down … and push us into a renter economy.

For more on how you can prepare for the new normal in real estate … listen 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.


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Podcast: Preparing for the New Realities of Real Estate

Robert Kiyosaki’s real estate guy Ken McElroy joins us for a reality check of investing heading into an unfolding crisis.

When the world changes, your investing strategy should change too. Listen in and learn how Ken McElroy is preparing for the new realities of real estate.


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!

Finding and Creating Value in a Hot Market

Markets can seem like a mystery. They’re hard to time … and no one wants to sit on the sidelines and miss out on an opportunity. 

Luckily, our guest today has been in the game for quite a while. He has found ways to thrive in ALL kinds of markets … and he is sharing his take with investors like YOU. 

Ken McElroy is real estate partner and advisor to Rich Dad Robert Kiyosaki. He knows how to find value in a hot market … so let’s get started!

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

  • Your hot host, Robert Helms
  • His hot-diggity-dog co-host, Russell Gray
  • Real estate guru and Rich Dad advisor, Ken McElroy

Listen


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Meet Ken McElroy

Our good friend Ken McElroy is an icon in real estate. He started out in property management and decided it would be better for him to own apartments. 

Today, he owns more than 7,000 units. 

Ken has a lot of practical, pragmatic wisdom … and he LOVES helping people grow and be successful.  

That love is reflected in his work as Rich Dad Advisor for real estate to Robert Kiyosaki and in his library of books. You’ve probably read Ken’s classic The ABCs of Real Estate Investing

Well, we’re at an interesting time right now. We’ve been in a really long cycle … and everyone wants to know what is going to happen next … and what to do about it. 

Navigating market changes

“One of the mistakes people make is that they try to time everything,” Ken says. 

There’s nothing wrong with thinking about things and trying to consider what the future will bring, but don’t overanalyze yourself into a corner. 

If you’ve bought correctly, and you’ve made some good money … you shouldn’t be concerned. 

Ken said his team had some properties that they really didn’t want anymore. As you grow your portfolio, you’ll have things doing really well, things doing just fine, and things that are taking up your time. 

As you feel like you are coming to the end of a cycle, it’s a good time to dump any projects that aren’t paying off for you. 

But what about if you’re trying to force equity?

One of the classic ways to force equity is ground up construction. Ken says he is still seeing those opportunities today, but investors should be prepared for market changes. 

As the market changes, you may have to rework your strategy. You take what the market gives you. 

Ken also says not to discount the power of small wins. Small wins add up. Look for opportunities to cut costs without cutting quality. 

This is especially true if you are involved in new construction or you are working with a large amount of units. 

If you can save $10 on 100 units, that’s $1000. Look for the small wins … and if you can, buy in bulk. 

In a hot market, the key is finding opportunities to add value. If you increase value, you increase your profit. 

Keys to success in partnership, investment, and family

Ken and his real estate partner, Ross, have been working together for nearly 20 years. That partnership has been key to his success. 

What makes them so effective as partners?

“We stay out of each other’s way, but we keep each other accountable,” Ken says. 

Ken and Ross have a clear division of responsibility that plays to their strengths. Ross handles tax and legal. Ken handles operations and equity. 

Together, they work on acquisitions. 

Ken says that in your partnerships, it is important to keep each other updated and in the loop. “We periodically sit down and make sure we each know about the moving parts,” Ken says.

Those moving parts include investors and tenants. Does taking care of tenants automatically translate into taking care of your investors?

“We think that that is really where it all starts,” Ken says. “Our tenants and our employees are as important if not more important than our investors.”

Why? Because if tenants are being treated well, you can reward your employees. And if they are happy … they keep doing a great job. 

All good things flow up. The investors benefit from happy employees and happy tenants. 

Ken points out that that same lesson applies to family as well as business. 

“If you haven’t played the cashflow game with your kids, you’re crazy,” Ken says. “My kids were not particularly great at math, but we invested in their education and treated them well.”

Ken says that by the time his kids got into finance and higher math in school, they understood income and expense, asset and liability, what a stock purchase was, and how capital gains work. 

Part of treating your kids well is helping them understand the hard work that goes into purchasing and investment. 

“My sons went to private school, and a lot of the kids were driving fancy cars. I made them save their money and buy their first car. It’s hard, but it’s easier to teach them to make money than to give them money forever,” Ken says. 

For more tips and wisdom from Ken, 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: Finding and Creating Value in a Hot Market

Robert Kiyosaki’s real estate partner Ken McElroy sits in as we tackle the timely topic of finding value in a hot market.

Markets are hard to time. And no one likes to sit on the sideline missing out on opportunity. But when cap rates are compressed, finding deals that make sense is a challenge.

Fortunately, Ken McElroy has been in the game for quite a while … and has found ways to thrive through all kinds of markets.

So listen in as we learn how to find and create value in hot markets … with Robert Kiyosaki’s Rich Dad Advisor for Real Estate, Ken McElroy!


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!

Robert Kiyosaki on Private Investing and the Three Kinds of Money

We’re sitting down at the Rich Dad radio studio with our long-time friend and the Rich Dad himself … Robert Kiyosaki!

As the world’s best-selling personal finance author … Robert is sharing his thoughts on the important differences between public and private investments. 

Robert calls these differences “the three kinds of money.” 

We’ll also revisit the enduring message of Robert’s record-setting book, “Rich Dad, Poor Dad,” … and talk about the dangers and opportunities facing investors today. 

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

  • Your idea-rich host, Robert Helms
  • His humor-rich co-host, Russell Gray
  • “Rich Dad, Poor Dad” best-selling author, Robert Kiyosaki

Listen


Subscribe

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Public investment vs. private investment

This week we’re going to talk about the difference between public and private investments … and who better to share ideas than Robert Kiyosaki. 

Robert has been on our show more than any other guest … and for good reason! He is the best-selling personal finance author in the world. 

We’re at an interesting point in the real estate business … but also in the economy. 

One of the themes that we’ve been talking about is the idea of private versus public and investing your money in a place that you understand … and that you’re educated about. 

Robert says the first step to understanding public versus private is to understand the shadow banking system. 

“The shadow banking system is what brought down the subprime market. It wasn’t real estate that brought down the market,” Robert says. 

What the shadow banking system did was inject the veins of the world economy with the most toxic asset classes. Robert says that the way they get you is via public stock market. 

But the beauty of being a real estate guy, Robert says, is that you are actually an untraceable part of the shadow market … but you can also function as a private entity. 

“I realized that the reason I make so much more money is I’m private. I’m not in the stock market,” Robert says. 

If you buy a house and it’s a rental house, that’s not a public transaction … it’s a private transaction. 

With all the uncontrollable factors of the public sector … shenanigans, as Robert likes to say … becoming a private investor is a great option. But it’s not without risk, and it’s not without trouble. 

The pros of being public is that you can get in and out quickly. It’s easy to change your course. It’s not the same if you have bought an entire apartment complex. 

If you are going to be private … your number one priority is your financial education. 

Cash flow and education

The biggest place where people get stuck is that they don’t understand the fundamental premise of what wealth is. 

It’s cash flow. 

When you start betting on the asset price … whether it’s the price of the house or the price of the stock or with negative interest rates … you’re not investing for cash flow yield. 

Instead, you’re investing hoping that somebody will come along and pay more for that same bond than you paid for it. It’s all gambling … and they want you in their casinos. 

If you invest in things that are real and are producing fundamental profits … you have staying power. You have resilient wealth. 

Part of being a real estate investor is getting in touch with your inner investor. We call it a personal investment philosophy … figuring out what you want real estate to do for you. 

And then you get educated. 

You could look at the fact that real estate isn’t liquid as a negative … but it’s also a positive. 

Since the market moves slowly, you don’t have to jump on a deal this minute or it’s gone. 

Instead, you get educated. You study markets. You study properties. You study how the rent works … and then you can grow wealthy over time. It doesn’t have to be an overnight success. 

Three types of money

Robert says that he believes there are three types of money today. 

The first is God’s money … gold and silver. It will be here long after we are gone. 

Then, there’s government money … flat currency … fake money. The only reason fake money exists is for paying taxes. 

The third type of money is people’s money … things like Bitcoin and other cyber money. 

Keeping these three types of money in mind can help you develop your investment philosophy as you move forward. 

Robert often says that only lazy people invest their own money … which is why we are big fans of syndication. 

Syndication is a great way to get private. You can invest or create investments that aren’t public investments. 

Whatever you do … whatever your personal investment philosophy … get educated, get private, and get out and make some equity happen. 

Hear more from Robert Kyosaki by listening 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.


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

We sit down face to face at the Rich Dad radio studio with our long-time friend and the world’s best-selling personal finance author Robert Kiyosaki.

Kiyosaki shares his thoughts on the important differences between public and private investments, what he calls the 3 kinds of money, and revisits the enduring message of his record-setting book Rich Dad Poor Dad.

Tune in and discover what the most influential financial author in history has to say about the dangers and opportunities facing investors today.


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!

Live from the 17th Annual Summit at Sea

Ten amazing days … over 200 people … studying, sharing, learning, growing, and partying … that’s the Investor Summit at Sea!

For 17 years, the Summit at Sea has been the highlight of our year … and we’re excited to share a piece of it with YOU.

We’ve gathered some of real estate’s most successful investors, entrepreneurs, niche experts, and thought leaders to share their insights and key takeaways from the 2019 Summit.

Listen in and learn what these pros discovered … and how it could help you make smarter investment decisions.

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

  • Your sailing host, Robert Helms
  • His flailing co-host, Russell Gray
  • Author and seasteading expert, Joe Quirk
  • Rich Dad, Poor Dad best-selling author, Robert Kiyosaki
  • The Apartment King, Brad Sumrok
  • Marketing mastermind, Kyle Wilson
  • The Godfather of Real Estate, Bob Helms
  • And SO MANY MORE!

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This is the Investor Summit at Sea

The annual Investor Summit at Sea is always a highlight of our year.

It’s a concentrated amount of time with some of real estate’s smartest people … all from different walks of life, different perspectives, and even different countries.

Every year, we learn to ask better questions … clarify our thinking … and do things differently.

Opportunities like the Summit at Sea are rare. In a short time frame, investors become friends, work out problems, and do some business.

We’d love EVERY one of our listeners to join us on the high seas … but we’d need a bigger boat!

So, we’ve brought together some of our fabulous faculty members to share their insights and key takeaways from the 2019 Summit at Sea.

A first glimpse at seasteading

Joe Quirk was a last minute addition to our faculty this year … and we’re so glad he came.

Joe’s real estate niche is seasteading … that’s right … homesteading the high seas.

It’s a novel idea. Joe says that … considering nearly half the world’s surface is unclaimed by any existing nation state … the technology is at hand to create startup countries on the ocean.

“It’s sort of a Silicon Valley sensibility brought to the problem of governance,” Joe says.

Instead of trying to change things from the inside, you create startups and do things better.

The first seastead has been floating off the coast of Thailand since early 2019 … and living there costs less than the average American home.

Joe and his team are ready to scale up … and scale up quickly. But he needs partners with real estate smarts to make it happen.

“We have marine engineers, economists, scientists, and medical experts. We have almost everyone we need, but we don’t have people that know how to structure and sell these things,” Joe says.

We view seasteading as a fascinating new frontier in real estate … and we’ll have more with Joe in the coming weeks.

Look at deals through a new lens

It’s Robert Kiyosaki’s sixth Summit at Sea … and we couldn’t be happier to welcome him back.

“I come to learn as well as to teach,” Robert says. “The Summit at Sea is basically immersion learning for real estate.”

Our port excursion this year was Grand Cayman. This area has undergone an interesting transition over the last few years.

Typically, people think of Grand Cayman as the place where rich people want to hide their money … but it is so much more!

Robert says he learned that how you look at a deal can really change the opportunities you see.

In the case of Grand Cayman, Robert had always looked at the market from the point of view of an investor … but he learned that sometimes it pays to try looking at a market from a developer’s point of view instead.

Through this lens, he could see that Grand Cayman is becoming a target for families. As the economic gap between rich and poor widens on other islands … crime rates are rising.

But Grand Cayman has the lowest crime rate in the Caribbean.

That fact coupled with high standards of living make it attractive to a new housing demographic … not just people looking for a tax shelter.

“There’s a deal of a lifetime every minute if you can see it,” Robert says.

Expand your team, increase your success

The Apartment King, Brad Sumrok, joins us for his third Summit at Sea.

Brad has made apartments his bread and butter … but that doesn’t mean he is done learning and growing.

“I keep expanding my team every time I’m here,” Brad says.

There’s no better way to grow your team than by spending a week and a half on a ship with 200 other people who specialize in a variety of asset classes.

So much of investment success is leveraging other people’s experience.

Last year, Brad says he connected with our good friend CPA Tom Wheelwright … and this year Tom saved Brad seven figures in taxes!

That’s a take away Brad took directly to the bank … and by surrounding yourself with smart people, you can do the same.

Master your marketing one step at a time

We’ve known Kyle Wilson for many years. He is a familiar face on the Summit at Sea … and always has great ideas for how to better market your real estate business.

“So many people are in the real estate business. They’re good at real estate. They’re good at finding markets and putting together teams, but not always solid in their marketing position,” Kyle says.

It’s easy to overcomplicate marketing. At the end of the day, marketing is simply connecting the dots for your customers.

Kyle says the key for real estate investors is to act in a strategic way. Don’t just throw a bunch of stuff at the wall and hope it sticks.

And remember that so much of real estate investing is built on relationships. Never let what seems like a good tactic get in the way of a good relationship.

Kyle is leaving the Summit with a list of ideas and action items … but cautions investors to take things one step at a time.

“You can’t do it all. Pick the one thing that’s screaming at you that will make the biggest difference and start there,” Kyle says.

A wealth of amazing opportunities

If anyone understands the benefits of an opportunity like the Investor Summit at Sea, it’s the Godfather of Real Estate himself … Bob Helms!

We’ve been hosting these cruise ship conferences for 17 years … and Bob has been with us every time.

With 40 years of real estate experience, Bob has seen amazing changes in the way investors make money and grow their opportunities.

“As I look at the group that is here with us today and the diversity of things they are involved in, I can’t help but have a big grin on my face,” Bob says. “The opportunities out there are amazing.”

Bob says his advice to investors is to educate themselves on different locations and asset classes. Find the niche that is right for you … and start building a winning team!

Get on the advance notice list for next year’s Summit at Sea by visiting our website … and listen in to the full episode to hear from even more experts and ideas from our week on the waves.


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!

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