Ask The Guys – Cash Offers, Crappy Properties, and More

We’re back again to tackle the questions we missed in our last Ask The Guys episode. We love these episodes and the opportunity we get to talk through some of YOUR real-world investing opportunities and challenges.

We hear from listeners dealing with tenant damage and security deposits, 1031 tax-deferred exchanges, nontraditional lending ideas and TONS more.

First, the ground rules.

We talk about ideas and information. When you’re dealing with real money in the real world, you want to consult a professional. We don’t offer legal, investment, or tax advice.

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

  • Your problem-solving host, Robert Helms
  • His trouble-making co-host, Russell Gray

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Question: How soon can I move in after a cash offer, and how low can I go under the asking price?

Joseph in Tacoma, Washington, asked this question. The important concept to understand here is price versus terms.

Whether or not you offer cash or take out a loan, the outcome is essentially the same for the seller. What cash offers is a quicker payout with certainty.

But, this isn’t attractive to every seller. In some cases, a quick closing isn’t what a buyer wants at all, so the promise of quick cash won’t be an incentive.

When you’re negotiating with cash, make sure what you’re offering lines up with the seller’s priorities. A cash offer doesn’t automatically mean a 20 percent discount.

Question: I rehabbed a rental property in Detroit, and now I’m ready to sell. My tenant wants to purchase the property, but she has limited cash on hand. How can I find a lender to do the deal?

Wilbert in South Field, Michigan, brings us this question. He wants to sell the home for $38,000, but the appraisal came back at $20,000. That price gap, as well as the location has made it difficult to find a traditional lender.

The first problem is that many banks won’t do a loan for less than $50,000. If the lender is going to go to all the trouble to do the paperwork for a percentage of the loan amount, then the loan amount needs to be enough to get their attention.

Here are a couple alternatives for Wilbert to consider:

  • Find a private lender. This might mean a higher interest rate for the buyer. But, that higher interest rate will be more likely to attract a lender.
  • Be the private lender. Rather than finding an outside investor, work a deal with the tenant to have them pay the loan to you instead. If they pay off the mortgage, you’ve still had that steady stream of income. If not, you’ll get the property back to rent or sell to someone else.
  • Find a different buyer. If finding a private lender isn’t possible, consider finding a different buyer who is able to get financing or purchase the home for the price you want to sell.

Question: When a tenant in our out-of-state rental moved out, they caused a lot of damage. Why don’t tenants take care of their rentals better, and why are they surprised when they don’t get their deposit back?

Renters view their home differently than an owner. How else do you explain that it feels like no renter owns a vacuum cleaner?

Damage to property is part of doing business as a landlord. But, Lauren in Charleston, South Carolina, did a lot of things right. They documented all the damage with photos before the tenant moved out, had a third-party realtor do a final walkthrough with the tenant, and got estimates from contractors to repair the damage.

Here are a few other things you can do to deal with damage:

  • A picture is worth a thousand words. Take photos of the property BEFORE the new tenant moves in and get their initials on the photos. Then, when they’re ready to move out, you can use those photos to justify the cost of any damage.
  • Open up a pet policy. Many landlords are hesitant to allow pets in a rental. But, with a hefty pet deposit and even a little higher rent, you can come out on top.
  • Get a read on your renters. As you screen applicants, be perceptive. We’ve also known people who will meet with potential renters at their current residence to see how they treat their current space. This may not be possible for everyone, but get creative and thoughtful about how you screen new renters.

At the end of the day, renters are more likely to treat a rental home with less care than you do. Damage and repairs are a cost of doing business, so make sure you build that into your budget.

Question: I want to sell my rental home in California, and I’m interested in the 1031 tax-deferred exchange to buy a new property in Texas. I’m confused by the IRS form and want to know if this will eliminate my taxes in California?

Cindy in Fort Worth, Texas, is definitely an A student!

First of all, we want to be clear that with this kind of complicated tax question, you need expert opinion and advice. A 1031 tax exchange intermediary will be well worth the cost and can answer all your questions.

The intent of the 1031 tax-deferred exchange is that if you sell a property and then purchase another property, you can defer the tax. As you buy and sell properties, you can continue to defer the tax, but there isn’t a way to eliminate the tax completely.

Finally, try not to let the tax tail wag the investment dog.

Real estate offers many great tax benefits, which is one of the reasons we love it! But, when you’re dealing with real money and the IRS, you need a team of experts to guide you.

Life is short, and you don’t want to spend your valuable time reading an IRS form.

Question: How can I learn more and get coaching on real estate syndication?

Addie in Seattle, Washington, brings us a question that is near and dear to our hearts!

We recommend our Secrets of Successful Syndication seminar as your first step. Whether you want to be a syndicator and learn how to leverage money with a group of investors or invest passively in real estate, this is an event you’ll learn a lot from.

In this seminar, we’re teaching the strategies that have been a part of our investments for years.

We do have a coaching program, but you can only learn about it at the seminar during an OPTIONAL session after the two days are done.

If you want to register for the event and see if syndication is right for you, we’d love to have you!

Question: My wife and I have a real estate investment company with 23 doors under rent. We’ve found traditional lenders to be slow and cumbersome and want to simplify our lending process. How can we do this?

John and Karen in Troy, Ohio, are having trouble scaling their business because of lenders. They write that they’d be willing to pay a higher interest rate to make the process easier and more streamlined.

For traditional banks, the process is often necessarily slow. They need to do due diligence to make sure the investment is a good one.

Private capital is easier and faster, but it comes at a higher price. This can be done through syndication or networking to find interested investors. Make sure you’re well advised and working with big deals, and you’re well on your way.

We’d also suggest that with the rollback of some of the Dodd-Frank provisions, some of the restrictions on community lending have eased. If you haven’t checked in with your community lender recently, it’s worth getting to know them. They’ll get to know you and your entire portfolio of properties and could be a valuable resource.

Question: I wasn’t able to attend your events for the Future of Money and Wealth in Florida. But I’d sure love to get access to that information. How do I do that?

A listener in Hawaii wants to learn from the incredibly faculty we brought in to talk about how to keep up with the changing times in the economy.

This was a one-off event, and it was an incredible gathering of some of the best minds in a variety of subjects all focused on how to protect your wealth.

We recorded the event with a professional video crew and now have 20 different panel discussions and presentations available to watch.

You can visit the Future of Money and Wealth website to learn more or send us an email to future [at] realestateguysradio [dot] com. We’ll get you all the details on how to access these videos.

Question: My schedule seems to be always booked up by the time I hear about the Belize discover trips. Do you know the future trip dates for later in the year?

Tim in Silverton, Oregon, like many of us, has a busy schedule and needs to plan ahead!

To find out events as soon as possible and to get them on your calendar, get on our advanced notice list. Head to the events tab on our website. If you find an event there, and the date doesn’t work out, get on the advanced notice list and you’ll get an email letting you know about future dates.

Our next Belize discovery trip will be August 24-27, and registration is open now! We hope to see you there.

Question: What is the definition of a performing asset?

Matthew in Nacomin, Florida, asks us the shortest question in our inbox!

Simply put, a performing asset is something that puts money in your pocket. The more cash flow, the more equity. If you have something on your balance sheet that doesn’t put money in your pocket, it’s not a performing asset.

When you consider an asset you can go for a fat cow, a performing asset that will come at a premium but continue to deliver, or a skinny cow, a non-performing asset that needs some work to get it performing again.


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.

Profitable Niches – Single Family Rentals

In our final episode of our Profitable Niches series, we’re ending where many folks probably thought we would start … with single family rentals.

It’s no mystery why this is the most popular way for new investors to enter into real estate investing. Home ownership and single family homes are something that everyone knows well, and it makes sense to start with what you know.

When it comes to investing in single-family rentals, our guest this week knows her market inside and out and has some tips for picking the best deals that you’ll definitely want to hear.

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

  • Your singular host, Robert Helms
  • His family-friendly co-host, Russell Gray
  • Guest, Jean Gillen, real estate agent in Central Florida

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Why single family rentals make sense

It’s impossible to not interact with the real estate economy in some way. Whether you own your own home, rent, or have investment properties already, you’re participating in the real estate economy.

Single family rentals are a great way to enter into the market and interact as a beneficiary. So, rather than just paying rent or a mortgage, you can collect money from tenants. You’ll get cash flow AND build equity over time.

In the US economy especially, the single family market is given high priority by the government. There are incredible tax benefits and incentives given to people who own housing, even if they are renting it out.

After all, having affordable, accessible housing is an essential need and a key part of the nation’s economy.

But, single family rentals are also accessible to small-time investors or folks just starting out. They aren’t very efficient, so larger investors don’t have the ability to cherry pick individual listings. That’s how smaller investors can do the research to find great deals and still enter the market.

One of the first things we talk about with any kind of investment is understanding your investing philosophy. Then, build a top-notch team … a realtor, lender, and other experts. Finally, find the right property to buy.

Our guest this week is a realtor who specializes in investment properties. She knows all about the importance of building a team and finding investments that make sense.

The secrets of successful single-family rentals

Jean Gillen is a realtor in the Central Florida market. She helps investors get good deals. And, when you’re looking to build an all-star team to help with your investments, you want a realtor like Jean who knows what investors are looking for in a rental.

“The wonderful thing about selling to investors is that it’s all on a piece of paper,” Jean says. “If it doesn’t work out on a piece of paper, don’t buy it.”

One of the pitfalls some new investors and certainly new homeowners make is getting too emotionally attached to a kitchen or other part of a house. It can lead to decisions that don’t make sense on paper.

That’s why Jean works with the types of clients that she does.

“I like working with investors because I don’t have to please the woman or the man,” she says. “It’s more fun to find that great investment for people.”

In fact, Jean says she has clients she has never met, and they’ve purchased properties they’ve never seen in person. While this may be a paradigm shift, it goes to show that taking the emotion out of purchasing a property and seeing it as the investment vehicle it is can be a good philosophy.

One of the other things Jean sees as key to a successful investment is a good property manager. Jean has several management companies she works within her market and suggests her clients interview all of them.

“If you feel you can get along with the manager, then it’s going to make your life much easier,” Jean says. In many cases, your property manager will pay the taxes and HOA fees for you.

And, of course, finding a realtor who understands investment property is worth their weight in gold. They’ll be a valuable resource to find additional properties and even to manage current ones and solve problems with property managers.

Single family rentals in Central Florida

Single family rentals are all about the market. Find a strong market and the right realtor to guide you through, and you can capitalize on what single family rentals have to offer.

Jean specializes in the Central Florida market. She knows the streets and neighborhoods where clients can find the best deals. AND she knows the tenant demographics.

Even though Florida is known as being the place for retirees, she says, the average age of residents in Central Florida is 37. Many tenants today were homeowners before the economic downturn in 2008 and have decided they’d rather rent.

“These are just normal people. They could be school teachers or work in hospitals,” Jean says. “I rented a house to a doctor because he worked at a new hospital and didn’t want to buy for the first two years.”

Jean also prefers Central Florida because it’s landlord friendly. Thanks to Florida’s governor, more businesses are coming to the state and drawing in a larger workforce. It’s a hotbed of activity for aerospace, university students, and many other industries.

In fact, Jean says that home values in Florida are expected to rise 35 percent by 2021, meaning now is a good time to consider looking at the market. With new homes coming into the market by the end of summer, Jean is excited about the new opportunities available.

At the end of the day, Jean believes that the deals worth doing are the ones that make sense on paper. She’s put together a presentation on the Central Florida market including who is renting and how to find properties that will cash flow well. We’d love to send it to you!

Send an email to centralflorida [at] realestateguysradio [dot] com and you’ll receive it right away along with Jean’s contact information to learn 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.

Profitable Niches – Agricultural Investing

Throughout our Profitable Niches series, the message has been clear … there’s more than one way to invest in real estate. It’s so much more than single-family homes and apartment buildings. And, in today’s market, when some of the more traditional investments are stretched, it’s a good idea to think about something new and fresh.

Agricultural investing may not have been on your radar, but that’s about to change! And no, you don’t have to have a green thumb to participate. We’re talking with an expert guest who has blazed a trail into a market that’s energizing AND tasty.

As a sweet bonus, you can support a socially sustainable program as well. Check it out!

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

  • Your cultivating host, Robert Helms
  • His growing co-host, Russell Gray
  • Friend and farmer, David Sewell, Founder of International Coffee Farms

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From beans to mug or bar … picking a crop

Just like everyone needs a roof over their head, everyone has to eat. That means there’s a demand for agricultural products and an opportunity for investors to do well in agriculture.

All it takes is a little education on the language of agricultural investing. In housing, it’s all about markets and demands. Agriculture has the same learning curve. Once you understand the geography, the demand for products, and a little of the science behind growing, you’re on your way to getting a foothold in agriculture.

But, agriculture is a wide world, so we’ll narrow our focus.

Our guest, David Sewell, started in agricultural investing with one product: coffee. It has a long shelf life, doesn’t perish quickly, and there’s enormous demand for specialty coffee with limited supply.

Specialty, socially sustainable coffee has been David’s niche since 2014. He purchases farms that are managed poorly, spends time working on the soil, understanding the climate, planting trees, and building a system that delivers product at a great return.

“Specialty coffee is a unique product that’s managed by the tree,” David says. “Specialty coffee is hand-picked, one cherry at a time.”

One of the best things about specialty coffee is that the limited growing geography drives up demand. But it takes some time to get a farm turned around to producing. Just like any gardening project, it takes patience and skill.

Since David started his business in 2014, he has worked through plenty of challenges and developed an amazing model that is blazing a trail in agricultural investing.

And now, he’s moved into a second crop.

“A good way to start the day is with a good cup of coffee and, in the evening, end it with a couple pieces of chocolate,” David says.

The demand for specialty, fine-flavored cacao is rising, and the supply is even MORE limited than specialty coffee. David’s cacao choice is particularly a specialty in Belize.

David took what he learned from coffee in Panama and rehabbed a few farms in Belize with the same, successful model.

With a little science, ingenuity, and care, David has capitalized on the demand for specialty products. He has 154 farmers who sell their crop exclusively to him, in his centralized processing facility.

“It’s what they needed,” David says. “So, we can control the cacao.”

David has three farms as well as a trading company that buys and sells literal tons of beans every weekend.

They’ve all been trained on organic processes, and together, they use the centralized processing systems he has built to make an efficient product that is ready for market.

Socially Sustainable Investing

Conditions on a coffee farm aren’t known for being great. That is different on David’s farms. He takes care of his 35 farm hands, and it has paid off.

“We’re proud to say that with the compensation program we’re able to provide and with the love and attention we’ve paid them, we haven’t had one turnover in 3 years,” David says. “We take care of the people.”

David’s farms change the way workers live. They receive good rain gear, so they aren’t picking cherries or tending to trees in the rain wearing a trash bag. Kids aren’t allowed on the farm … they attend school.

Families live in provided housing with electricity, flushing toilets, and other amenities that we often take for granted.

And, while these benefits for employees are key to David’s business, it’s not all altruistic. Labor turnover is expensive, and taking care of workers keeps them from leaving.

Beyond just the living conditions, workers are sent to seminars and congresses to build up their skills so they become even more educated and grow with the company.

This dedication to his workers shows by the passion and dedication they bring to the field and to the job every day. His workforce is expert in cacao and coffee, and that drives the superior flavor … and price.

That makes investing in opportunities like David’s even more exciting and sweeter for investors. Not only can you make money, but you can also make a difference.

Small-scale agricultural investing

One of the drawbacks to agricultural investing is understanding the science and process to growing, processing, and distributing a product. It takes time and experience to know a good opportunity and to succeed.

For instance, David learned early on that the biggest hurdle was the deeding process for international property. He warns that it is difficult to do on an individual basis.

But, David has found an interesting way to let people play with agricultural investing.

“We’ve focused on the delivery part of the investment vehicle,” David says. “That’s the hard part and where failure happens in many cases.”

With David’s business, he wanted to use his knowledge of syndication to make agricultural investing more accessible for people, regardless of their knowledge level and even for those who couldn’t buy an entire farm.

David’s farms are broken out into ½ acre parcels that can be bought individually or in groups. The parcel is deeded an individual investor or entity’s name, and it’s essentially a turnkey investment. It’s managed and operated by David’s team and investors not only get the returns, but also the knowledge that they’re participating in a socially sustainable program.

For investors looking for a legacy investment to pass on to their kids, or to invest in a program that’s socially sustainable, this is worth a serious look.

To learn more about David’s coffee and cacao operation and how you can get involved, send an email to beans [at] realestateguysradio [dot] com, and we’ll get you his special report on both opportunities!

And, we’d love to see you in September with David at our Secrets of Successful Syndication seminar. Here’s where to sign up!


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.

Profitable Niches – Real Estate Development

In this episode of our Profitable Niches series, we’re starting from the ground up. Inventory of homes is tight in many US markets, and returns are diminishing. Enter real estate development.

Our guest, Jay Hartley, saw an exciting opportunity to expand his business into the real estate development space, and he’s got a wealth of knowledge to share.

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

  • Your stately host, Robert Helms
  • His developing co-host, Russell Gray
  • Returning guest, Jay Hartley, real estate developer and property manager in Dallas-Fort Worth

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Beginning with the basics

One of the questions we ask in our seminars is which is more risky: buying an existing building and renovating or building from the ground up? The truth is, there isn’t a right answer to that question.

From inheriting problems in an existing property to building too much or building something the market doesn’t want, there’s a lot to consider when deciding whether to build or buy. The key is knowing the market, the demand, and the supply.

One of the most exciting things about real estate development is the number of entry points. Throughout the lifecycle of a property, there is value being added. Taking raw land from a zoned area to a lot with utilities and a finished building are all steps in the process.

For those who find themselves in a market with a lot of demand but a squeeze on supply, real estate development can be a FANTASTIC way to add more houses into the market, whether or not you hold on to that inventory long term.

Shifting your investment mindset

Jay Hartley is known as one of the best property managers in the Dallas-Fort Worth real estate market. He began like many investors with buying and renting fixer uppers.

Eventually, inventory started getting tight, prices escalated, and returns diminished. That’s when Jay took his first steps into development.

“We had to look at the marketplace and see where the opportunity would be to add inventory,” Jay says. “We started looking at acquiring vacant lots that were already in subdivisions and doing what they call infill.”

Infill meant building one or two homes on lots in subdivisions and then either renting or selling those homes to investors as turnkey properties.

It wasn’t long before Jay’s successful turnkey model got plenty of competitors and Jay took it to the next level. He utilized the economies of scale by getting into bigger developments and subdividing tracts of land. That’s also when he started building his network and expanding his education.

“I had some clients in the building business,” Jay says. “I took them to lunch and started picking their brains.”

Jay soon learned it was a smart idea to partner with a few builders early on. But then the key to sustaining his business was to keep his contractors busy with his projects so he didn’t lose them to other projects.

Real estate development doesn’t necessarily mean you’re the one swinging the hammer. In many ways, it’s orchestrating OTHER contractors and moving parts to complete a job. That also means managing labor.

“One of the biggest issues we’re dealing with right now is having labor ready and available,” Jay says. “If we don’t keep them busy, we lose that framer, we lose that concrete guy, we lose that roofer. We try to set them up to go to one job site to the next to keep them busy and on my job.”

As the deals got larger, Jay had to deal with the growth spurt in his business. He was always known as the property management guy, but had to shift his mindset as he shifted into real estate development. One of those moves was toward selling properties rather than buying and holding.

“I’m not afraid to sell them anymore,” Jay says. “I was a collector before, and it was tough for me to wrap my head around selling them.”

But, with some help and guidance, he was able to work through those mental roadblocks and scale up his business!

Get rich in a niche with a network

Rolling with changing markets is what makes an investor successful long term. Even though Jay was doing really well in property management, he saw a need for more inventory in the market. So, he became one of the people to create it! That has also set him up to know about lots of different types of real estate, and it’s another tool in his toolkit.

“It’s not about what I’ve done. It’s about who I’ve met,” Jay says.

Building a network of people with all kinds of unique backgrounds is a way to tap into their experience. Jay says you can take classes and watch videos, but watching flipper shows on television doesn’t mean you know how to flip a house. Partnering with people on a build job, however, is worth its weight in gold.

And that’s the essence of most development. It’s done through syndication and joint ventures. You can partner up with people who have the land, capital, or expertise you need, and you can put together a great deal.

Jay started out financing his own projects, but it wasn’t until he started tapping into syndication that his business really took off. He attended a few of our programs on syndication and sales, and they catapulted him into success.

“I’ve been in real estate all my life,” Jay says. “The training there, I didn’t think I really needed it. It was enlightening … it gave me the tools and the ability and the confidence to talk to clients and investors and pitch!”

Jay’s journey has been propelled by his ability to be ambitious and coachable. The ability to shift and adapt to new markets is how he keeps his skills sharp and his business growing.

If you’d like to learn more about real estate development and property management in the Dallas-Fort Worth market, get on the inside track with Jay. Send an email to dallasdeals (at) realestateguysradio (dot) com, and we’ll connect you with Jay and his expertise!

And, we hope to see you at some upcoming events. Secrets of Successful Syndication and How to Win Funds and Influence People are packed full of information that you won’t want to miss. Register now!


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.

Ask The Guys – Unraveling the Mysteries of Real Estate

It’s one of our favorite segments … answering YOUR real-world questions about real estate investing.

In this batch of mail, we run through where to start with syndication and investing to how to think about self-directed retirement funds and everything in between.

As a reminder, our show is about offering ideas and information, but we are not legal or tax professionals and do not give advice. Always see a pro for advice on your specific situation.

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

  • Your problem-solving host, Robert Helms
  • His unraveling co-host, Russell Gray

Listen



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Question: I’m a real estate agent and would like to start investing for myself. How do I get started?

Kristen in Seattle, Washington, brought us this wonderful question. First of all, hats off to you for wanting to be your own best client!

Starting with the right education is so important and so is developing your network. You might consider joining an investment club, but you could also think even bigger and start your own!

Starting a syndication or investment club can be very successful if you surround yourself with the right people and experts. Here’s a few people you’ll probably want to include:

✓  A CPA to help with understanding tax benefits

✓  A mortgage broker to extract excess equity

✓  Other real estate agents … especially those with investment knowledge

You can convert your pursuit of education into a profitable business. Start by going to events with meetups and investment clubs. Remember, it’s not just the presenters who have a great story. It’s also the people in the seats. Make lasting connections with other attendees, and bring them into your network.

Question: Which materials … books and blogs should I read for getting educated in investing?

Our best advice to Luca in Croatia, who submitted this question, is to not just read a book … STUDY a book. Prepare your mindset to start thinking like an entrepreneur.

What does this mean? Find a group of people who are interested in investing, and get together and discuss a book.

You’ll learn by listening to what others have to say AND teaching different concepts. Repeat the process of learn, study, teach, and use these discussion groups to build your network.

Recruit people who are further along in the investment process than you to learn from them. You want to discover not only the technical aspects of what they do, but also how they think. Explore their mindset and examine how it makes them successful.

Question: I want to self-direct my retirement funds after I leave my job. How can I use this money to invest in real estate?

This question comes from Jason in Stokesdale, North Carolina. Some aspects of this type of investing can get a little tricky, so remember to always seek advice from a tax and legal professional.

For money that’s in a 401k from an employer, you might have access to what’s called an in-service withdrawal. You might also consider taking out a loan on your 401k.

As with any investment, make sure that the numbers add up, especially since there are important tax considerations to make when you’re investing borrowed money. This is also where a CPA will come in handy.

The vast majority of custodians do not allow for traditional investing and don’t charge a lot in fees and maintenance charges because they make a piece of what you’re investing in. Non-traditional custodians may charge more fees upfront because they do not make a piece of anything you invest in, but they can offer more flexibility in what you invest in.

If you want to know more on this topic, we have a couple reports that might be helpful on Qualified Retirement Plans (QRP) and Individual Retirement Accounts (IRA). You can get both of those by emailing QRP (at) realestateguysradio (dot) com AND IRA (at) realestateguysradio (dot) com.

Question: For those who don’t like all the work of real estate investing, how do you find a trusted syndicator?

Roy in Bridgewater, New Jersey, and Patrick in San Diego, California had similar questions about passive investing through a syndicator. They both want to break into the bigger real estate deals, but are worried about putting their money into the wrong hands. Syndication is a powerful tool that we’re big fans of here on the podcast, but vetting your syndicator is key!

First, look up all the info you can on your sponsor and know who you’re dealing with. Ask them upfront if there’s anything important you should know about them or their business, and then, go searching.

Referrals are a good way to get to know your sponsor. Careful Google searching (watch out for false information on the internet!) and looking up professional licenses and potential trouble with regulators are also essential before doing a deal.

Also, make sure their attorneys and legal documentation all checks out.

As we’ve said many times before … develop a relationship with the sponsor. Take the time to get to know them and the types of deals they do to make sure it’s a good match.

We’d love to talk to you more about syndication at our Secrets of Successful Syndication event on September 13-14. Register now!

Question: I have a commercial property near the end of its lease. Should I sell it or keep the passive income?

Colleen in Savannah, Georgia, has had a triple-net (commercial) property for 13 years, but the lease will be up in 4 years. She enjoys the passive income from the property, but wants to know if it might be time to let it go.

We discussed the advantages of commercial property in detail with Tom Wilson in our Profitable Niches series, and the longer leases and steady income are definitely big pluses!

Lease negotiation can happen before a lease is up, so that’s an option to make the deal sweeter for a potential buyer. But, here are a couple questions we would ask to determine if selling is the right choice:

✓  Knowing what you know now, would you buy it?

✓  If you did sell it, what would you do with the money?

Ultimately, the decision to sell or keep the property is up to you, but evaluating the lease with fresh eyes is a good way to keep your investments in line with your goals!

Question: How can I make some of my assets more liquid to prepare for an economic downturn?

Marty in Richmond, Virginia, has some real estate investment experience, but he’s concerned about a possible negative turn in the economy and how to protect some of his assets he’s received after selling a property.

We discussed the state of the economy and how to protect and grow wealth at great length in our video series: The Future of Money & Wealth. Take a look at that seminar for valuable insights from incredible experts.

To answer the question, if you think the market is going to downturn, you’ll want to play your investments differently. There are pros and cons for stock market investment and even bank investment, and they all carry different risks.

If you want something that is liquid and fairly stable in relation to the dollar, you could consider a couple options like currencies, precious metals like gold, or putting your money in the bank or a safe.

Some other creative strategies are looking into a private mortgage or note or even paying cash outright for a property. As long as you’re able to cover property taxes, having a property in a stable market is a good way to keep cash flowing in a down market. Even in a poor economy, people need a place to live.

Question: How many times a year is your syndication class given?

This was an easy one from Floyd in Las Vegas, Nevada. We do our Secrets of Successful Syndication podcast twice a year. The next one is coming up in September, and we’d love to see you there!


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.

Profitable Niches – Investing Through Others

As a busy professional, chances are you’ve got people trying to bend your ear constantly about investment opportunities. And sure … some of them sound amazing, but how do you know you’re getting in with the right people? Or maybe real estate investing is what you want to do, but you don’t have the time for it.

That’s where our guest Dr. Buck Joffrey found himself as a busy surgeon. Now, 10 years later, he’s killing it with a successful podcast and real estate syndication organization.

This week, we’re talking about passive real estate investing … passing the heavy lifting to someone else while YOU get the return.

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

  • Your hands-on host, Robert Helms
  • His second-hand co-host, Russell Gray
  • Guest, Dr. Buck Joffrey, host of the Wealth Formula podcast, real estate syndicator, and board-certified surgeon

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Get returns … without getting your hands dirty

Real estate is a messy, hands-on type of business. And while you can do all kinds of research beforehand, the best learning is on the job.

If you don’t have time to manage your own deals, passive investing could be the right move for you.

Passive investing gives you the benefits and returns of real estate … taxes, income, and diversification as well as the turn-key ease of setting and forgetting your investment.

The appeal of real estate investments is partly because your assets are tangible. You can go visit your building, and it occupies more than just a piece of paper or line on a ledger.

But, real estate takes time to understand the market, vet the deals, go through all the paperwork, and then manage a property afterward. You might be thinking, I don’t have time for that, I’m running my own business, and it’s taking all my time.

Joining up with other investors is how to leverage the expertise of others and even tag along to become a student yourself, all while getting in quickly and easily. It really can be whatever you want to make it be for yourself!

Find your investing tribe

As a busy professional himself, Dr. Buck Joffrey discovered early on in his real estate investing journey that he wanted to find like-minded people to invest with.

“If I got involved with a good syndicator who knew what they were doing, those returns and all those benefits I wanted out of real estate were there anyway,” Buck says.

And, once he found people he knew, liked, and trusted in the real estate space, the hardest part was over.

“What I realized is that if I could invest in such a way that if I did a lot of vetting and due diligence and I knew other people were involved … my chances of success went way up,” Buck says.

It wasn’t long before Buck’s friends started asking what he was doing and how they could get in on it too. All of this relationship building is what Buck calls tribal investing. And this approach is key to his success.

“Your network is your net worth,” Buck says. “I look more at the team than I do the deal. If you know, like, and trust somebody and you know their track record, then you can get to the point and can look at a pro forma.”

The relationship is just the building block to a good deal … Buck also notes that while there are lots of folks who he knows and likes, he may not be excited about the deals they’re doing. Just a little education about the types of investments you’re considering will go a long way.

Condensing your education timeline

As with any investment, you need to know enough to ask the right questions so you don’t get burned. But, as a busy professional, adding in time for that education can be a heavy lift.

That’s why Buck’s networking style translated perfectly into his new course, “Your Roadmap to Real Wealth.” It’s not just Buck teaching the course … he’s tapped into his deep network to bring in experts that share with you what he learned over a decade over a condensed timeline.

“One thing that everyone has in common who is on the show is that I have a relationship with them,” Buck says. “This is my tribe talking to me as a young physician.”

Buck has gathered experts in real estate … INCLUDING yours truly, The Real Estate Guys™ as well as estate planners, and many, many more.

We asked Buck about how passive investing works into the diversification angle. Buck mentioned he was initially interested in apartments as a first investment.

“What I realized was that I was trying to get at scale,” Buck says. “With syndication, you can take the same two or three hundred thousand dollars and now you’re in four, five, six buildings, and you’re in thousands of doors, and you’re across the country!”

Syndication gives you the opportunity to allocate your risk, and use your capital more efficiently. And all of that diversification collapses your time frame and gets you more cash flow sooner!

To learn more about passive investing and Buck’s course, “Your Roadmap to Real Wealth,” send an email to roadmap@realestateguysradio.com. We’ll hook you up with all the details!


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.

Profitable Niches – Commercial Property Investing

There are many ways to invest … and one way isn’t necessarily better than the other. Real estate is nuanced. It’s always a good idea to broaden and expand your expertise into different markets.

That’s why we’re THRILLED to talk to our returning guest, Tom Wilson, about commercial real estate investing. His engineer’s mind can deconstruct this intimidating topic into bite-sized pieces … the perfect size for inspiration!

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

  • Your seasoned host, Robert Helms
  • His underseasoned co-host, Russell Gray
  • Tom Wilson, a long-time friend of the show and expert in commercial real estate investing and syndication

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Add more commas and zeros to your thinking

Commercial real estate investing feels more advanced because the deals are bigger. But the truth is that it takes nearly the same amount time to learn how to do big and small deals well.

One of the beauties of commercial deals is that you’ll get more leverage. And, this will put you on the road to adding commas to your thinking and diversifying your real estate knowledge … a must in dealing with a changing market!

Of course it takes time to get educated on a new market. Many commercial real estate deals are funded through syndication. Jumpstart your education by joining forces with people who know their stuff.

“I think the best thing I’ve done over the years is to adjust to different markets and asset classes as they’ve progressed,” says Tom Wilson, an expert in commercial real estate investing and syndications. “It’s awfully easy to get really comfortable in something that has worked before.”

Since Tom has a background in engineering, he approaches problems from a research and numbers perspective. But even he knows the value of bringing in the experts.

“I got some advice early on: Don’t try to do everything yourself,” Tom says. “You can accomplish more in life if you gather experts around you. I like to constantly be learning from others.”

Understand tenants and leases

One of the things that can initially seem foreign to new commercial real estate investors is what tenants look like in a commercial building.

Just like families live in residential areas, businesses make up your tenants in a commercial real estate deal, but with a few key differences:

  • Leases are longer for commercial deals. It’s not uncommon to see a commercial lease for 15 years or longer on a single-tenant building. You know that businesses are going to stick around in one location for a long time.
  • Maintenance is handled by the tenants. These leases are called triple-net leases, which essentially means that the tenants pay all real estate taxes, building insurance, and maintenance.

“Many of us who have had rental properties understand about turnover, tenants skipping overnight, having to do evictions. These elements are rare in the commercial arena,” Tom says.

With the right expertise, managing commercial can be much easier. The tenants are higher-quality, and you have lower turnover in your buildings. And, you’ll likely know well in advance before a vacancy happens.

When you’re looking for a commercial space, you need to know who your tenants are. This is even more crucial when you have a single-tenant space.

“It’s important to do a deep dive into the tenant’s financials and the market they’re in,” Tom says.

With big-name brands, remember that there may be low risk, but there’s also low returns. However, the tier below that offers a real opportunity for some good deals, as long as you’ve done your homework.

Know the market

Just like there’s diversity in the types of residential properties, the options for commercial real estate are just as rich. And, e-commerce has definitely caused a bit of a shift in the commercial real estate space.

“You still need to get a product to the door,” Tom says. “You’ll need more distribution centers and smarter distribution centers. We need more last-mile distribution centers.”

Not only that, but the increase in demand for these industrial distribution locations have removed some of the supply for other commercial properties, which means the market for industrial and commercial real estate is healthy.

We also know that brick and mortar stores aren’t going away. You can’t get your hair or nails done online. You still drop off and pick up your dry cleaning, and your pets go to the vet!

And, commercial real estate doesn’t stop at brick and mortar stores or even distribution centers. Large manufacturing plants, refrigeration, R&D, and many other options are out there for types of commercial real estate.

No matter where you choose to crack into commercial real estate, here’s a few nuggets of wisdom from Tom’s long resume of commercial real estate deals:

  • Get educated enough to ask tough questions.
  • Surround yourself with people who know more than you do and don’t feel intimidated.
  • Delegate and spread out responsibility so each person has a manageable piece to take on.
  • Stay rational when the stakes are high.

If you’re ready to take on commercial real estate, Tom has prepared a special report packed with important details on how to be successful in this niche. To get your free copy, email us at commercial@realestateguysradio.com.


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.

Profitable Niches – Lifestyle Investing

You may have heard that it’s bad to mix business with pleasure. But, when it comes to lifestyle investing, part of the fun is owning property in a place you love.

Yes, it is possible to make lifestyle investing make sense for you … as long as you follow some important guidelines to line up the numbers, location, and opportunity.

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

  • Your vacation ready host, Robert Helms
  • His in dire need of vacation co-host, Russell Gray
  • Guest, Nick Rohrbach, from The Grove Resort and Spa in Orlando, Florida

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Why a lifestyle investment might be a good fit

Life is too short to be involved in an asset class you don’t enjoy. Too many times in real estate, we get hung up on the ROI and let it rule the day. Lifestyle investing spices things up by adding personal enjoyment and personal use into the mix.

With the right strategy, you can tap into a FANTASTIC opportunity for growth. Premium properties fetch a premium price from renters and vacationers. Of course, you’ll also be able to enjoy the property with your family and friends.

We’ve all been on vacation and experienced that “I never want to leave” feeling. But remember, just because a place is nice to visit doesn’t mean it makes sense from an investment point of view. Here are a few recommendations to keep in mind.

 

  • Know the market

 

As with any real estate investment, your research into the market will be worth its weight in gold. This is especially true for lifestyle investing where the durability of rent, the ability to fill occupancy, and the property’s long-term profitability will be the difference between a fun investment and a bust.

With a good location, property, and market your investment has the opportunity to weather downturns. People in higher income brackets can afford to go on vacation even if the economy is down.

 

  • Bring on a stellar management team

 

The difference between a fun, hands-off lifestyle investment that you’ll love visiting and a drag is a good management team. Property management comes at a higher cost than single-family homes … sometimes upwards of 50 percent … but it gives you peace of mind AND access to amenities that delight and excite high-end vacationers and renters.

Your management team will handle all the bookings, and they have access to wholesale outlets such as Travelocity, Hotwire, Priceline … all the big names people use to get their vacation rentals.

And bonus! When things break, they fix them.

Opportunities abound in Orlando

Orlando, Florida, is the #1 traveled to place in the world. Thanks to Disney World, Universal Studios, and a THRIVING convention market, there’s no end of things to do for business travelers and families. And did we mention it’s a no income tax state?

We could go on and on about the many reasons why Florida is a consistently hot market and one of our favorite places to visit:

  • It’s centrally located to beaches
  • It has access to direct flights out of many places from the beautiful Orlando airport
  • The weather and attractions are top-tier
  • Convention business is strong and growing

Nobody knows this better than Nick Rohrbach, our guest from The Grove Resort and Spa.

Beyond tourism, Florida has a vibrant, booming economy. “There are 19 [amusement or theme] parks in central Florida alone,” Nick says. “Medical City is booming, we have one of the largest universities in the country, University of Central Florida, and over 150 VA hospitals.”

Plus, unlike many destinations, Orlando is not seasonal. The average occupancy is about 75 percent year round. Even during the economic recession in 2009, average occupancy never fell below 60 percent.

All of these elements make Orlando a place you might want to keep your eye on.

Filling a niche in the lifestyle investing market

When you’re looking for a lifestyle investment, one of the important questions you need to answer is how a particular property sets itself apart from competitors.

Florida’s economy is one of the reasons The Grove is such a unique opportunity. Rohrbach explains that the project was originally built in 2007, 2008, and 2009, and all the units were sold to UK investors without closing on a transaction.

While all the units were structurally built, only 184 condos were completed. With some additional cash, amenities, and building out the insides, these units are essentially brand new.

The new ownership at The Grove Resort and Spa has a couple strategies to fill a niche in Orlando:

  • Amazing amenities including restaurants, 800 sq. ft. of convention space, and a newly opened water park.
  • Spacious condos with 2-3 bedrooms perfect for families.
  • Close proximity to Disney World … only 3 miles away!

For potential investors and owners, there are plenty of opportunities as well. The Grove has a stellar management company that keeps the property looking fantastic, takes care of you and any guests, and manages all the bookings, repairs, and maintenance.

“The key is really the management,” Nick says. “When you talk about having everything in place for lifestyle turnkey investing, you need that professional management so you don’t have to deal with anything. The guest experience is very important.”

Not only that, but The Grove is continuing to expand, with 878 total units coming online at completion. Only 450 rooms are available now, and they’re at 100 percent occupancy! As demand goes up, so will rates … and cash flow from a potential investment.

Make sure the deal works for you

Lifestyle investing can sound like a dream come true, but it still has to make financial sense for you.

Look at a market that appeals to you personally, and then start running some numbers.

For instance, syndication might be the right way to go. You could get creative and discover investment opportunities in a few locations so you’ll have access to a bunch of prime vacation spots.

Blurring the line between a pure ROI, detached investment and something you get to enjoy too doesn’t have to be out of reach. If the numbers, market, and property make sense, don’t be afraid to go for it!

Want to know more about turnkey lifestyle in Orlando, Florida, and things to avoid in the marketplace? Send an email to lifestyle@realestateguysradio.com. We’ll hook you up with a special report with all the details. 


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.

Profitable Niches – Investing Internationally

Is investing offshore right for you?

International investing can be both exciting and daunting. In our fourth installment of the Profitable Niches series, we hope to demystify the process for investors looking to cross some borders.

Every investment has a risk … you just have to learn how to evaluate the risk and the reward so you can choose wisely.

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

  • Your world-traveling host, Robert Helms
  • His petrified-of-planes co-host, Russell Gray
  • CEO of Mahogany Bay Village and international investor, Beth Clifford

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Expand your horizons with international investing

Our guest has made a name for herself in international investing.

The CEO of Mahogany Bay Village and a pro at international resort investing, Beth Clifford started expanding her own real estate business by moving into different states.

It wasn’t long before she got an itch to start looking outside the United States.

She’s a great example of someone who’s become a success by opening up her geographic horizons.

“It’s always convenient to live and invest in the same place, but real estate is about location,” Beth says. Investors have to look beyond what is outside their bedroom windows.

International investment also provides an opportunity to diversify and put your assets into different baskets.

Whether you’re an investor looking to expand beyond your state of residency or your country, Beth says the methodology is the same.

To invest smartly, you have to understand the market, laws, and culture of the place you’d like to invest in.

And just because there might be a learning curve doesn’t mean you should shy away from good opportunities.

Take what you’ve learned and expand it into another arena, whether that’s a new asset class in the same location or the same asset class in a new location.

Either way, you expand your world—and get the chance to become an expert all over again.

When you’ve learned one new market, it’s easier to get to know a second one, Beth notes.

And … “It’s all about teams,” she says. As someone who owns, invests, and develops in multiple countries, Beth has learned the value of a talented team.

Let’s talk about taxes

As soon as you cross a country border, you have to understand an entirely new tax system. That’s why Beth has separate development companies for properties inside and outside the U.S. … and why she enlists professional help when it comes to accounting.

Although taxes can be tricky, owning property and businesses outside of the United States can reap great tax benefits.

Despite that, some tax professionals still make a habit of creating fear, uncertainty, and doubt for investors who would like to make some money across country lines.

Beth recommends shopping around for an informed professional … because although the attorneys make it seem hard, there are really only three documents you need to complete each year.

She recommends professional assistance for at least your first two years, until you have a solid understanding of the basics.

One thing to be aware of? Currency arbitrage and exchange. If you’re unaware of currency issues, they could bite you. Make sure you understand whether you can easily exchange currency and whether the jurisdiction you’re investing in is neutral.

A relationship business

Real estate is a relationship business. And especially when investing beyond your familiar boundaries, building local relationships is key.

We asked Beth how to she expands her network across borders.

“I ask for help when I go into a market,” she says. Investors should have “an attitude of humility, not hubris.”

The first thing Beth does is look for the Class A players in a given market. Who are the top three law firms, employers, development companies?

Beth seeks out the movers and shakers … then picks their brains for advice.

“A players fly with A players,” she says. “It’s the rule.”

Networking doesn’t cost you money … and it gets you into the contact database of the best and brightest.

Once you’ve sought out the best, go in with the intention to learn. Ask these bright business people how they’ve obtained their success and where they see YOU going wrong or right.

The goal is to find team members who provide value to you … and are excited to do so.

And one business relationship can net literally millions of potential customers.

It’s all about leveraging yourself.

Is making connections any different in a foreign country? “People are the same everywhere,” says Beth.

Basic human connection is the key, no matter where you go. People want the same things … so connect on a common level.

Thinking about making the leap?

Wondering whether you’re cut out to be an international investor?

Beth recommends starting by test driving the market. Do a due diligence tour outside of the U.S. … like one of our discovery trips.

It’s a great way to get to know the area in which you might be investing, educate yourself on the culture and special considerations, get to know local movers and shakers … and have some fun.

Seeing how others put together international investments can be eye-opening, says Beth. Discovery trip attendees get a year of education … in four days.

So get there … and see what awaits you beyond the horizon.


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.

Investor Summit at Sea 2018 – Part Two

In this episode of The Real Estate Guys™ show, we bring the Summit at Sea™ to you! In part two of our Summit recap, listen to expert investors discuss the topics they know best, including:

  • Why moving to Puerto Rico can save you big bucks
  • What kind of capital you need to prepare for the future
  • The benefits of investing in real assets

And more! Our faculty will give you a taste of life at sea on the Summit cruise ship.

You’ll hear from:

  • Your smooth-sailing host, Robert Helms
  • His seasick (just kidding!) co-host, Russell Gray
  • Economist Peter Schiff
  • Chris Martenson and Adam Taggart, co-authors of Prosper!
  • The apartment king, Brad Sumrok
  • David Sewell, agricultural farmland broker and syndicator
  • Brand-building consultant Kyle Wilson
  • Syndicator Michael Becker
  • Author of the Gold Newsletter, Brien Lundin
  • Precious metals dealer Dana Sanderson
  • Real estate guru Kathy Fetke
  • And finally … the godfather of real estate, Bob Helms

 


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Tax free in sunny Puerto Rico

The Summit at Sea™ is more than just a once-in-a-lifetime educational opportunity … it’s also a cruise around the Caribbean.

One of our stops was lovely Puerto Rico (PR), where some Summit attendees were lucky enough to be hosted by faculty member Peter Schiff. Peter moved his family and business to Puerto Rico about five years ago.

“It was not a sacrifice,” says Peter. He sees great benefits to living in PR. It’s very family friendly and has beautiful weather and beaches and great communities.

But the biggest benefit … and the reason Peter relocated to this island territory … is the tax breaks. Puerto Rico has a four percent corporate tax, and residents can receive dividends tax free.

Living and working in PR is the best way to maximize tax benefits … although you only need to be in the area 183 days a year. But since Peter is “trapped by the school year,” he chooses to enjoy this island paradise year round.

“It’s not as onerous as it seems,” he says of getting and maintaining Puerto Rico residency. We can vouch for that!

Ways to build your capital

Chris Martenson and Adam Taggart joined us on stage to chat about the value of attending the Summit … and the importance of building the eight types of capital they outline in their book, Prosper!

Their key takeaway from the Summit? The number of millennials interested in finding ways to build capital and prepare for the future. “There is a critical mass of young investors who are keenly interested in our message,” says Chris.

During a breakout with millennials, Chris and Adam witnessed young investors getting the chance to learn from experienced investors.

They were impressed by millennials’ command of pressing issues, including, Adam says, resource depletion, species extinction, and the fact that lifestyle costs are quickly outpacing wages.

“Younger generations have nothing to gain if the status quo continues as it is, but older generations have everything to lose,” notes Adam. The big question is how to resolve this tension.

Younger generations will be the ones to come up with solutions … so it’s important they realize that the other side of challenge is always opportunity.

Folks who are intelligent and aware will have a chance to make an awful lot of money … but they can’t do it with financial capital alone.

“If all you have is financial capital, you’ve basically just painted a big target on yourself,” Adam says. He says emotional capital is probably the most important form of capital to have.

That means being able to handle crisis without falling apart … and coming back stronger. It’s the willingness to be vulnerable … and make meaningful connections with other people.

“It’s hard to find places where you can drop your guard,” says Adam, but that’s why the Summit is so extraordinary … it allows attendees to be real and experience true connection with a diverse group of people.

Turning dollars into precious metals

We had two faculty members speak to our attendees about precious metals investing. Brien Lundin is the author of the Gold Newsletter, and Dana Samuelson is a precious metals and rare coins dealer.

We invited these men to join us as faculty members because even though our focus is real estate investing, we believe investors should be looking at the bigger picture of all real assets … including precious metals.

“I was really blown away at the quality of the speakers, the audience interactions, and the audience itself,” Brien says. Dana agrees, “I’ve never met a more unassuming group of over-achievers in my life.”

Both men had similar advice for investors.

According to Brien, “Some level of dollar depreciation is inevitable.” And, he adds, “Every developed economy is in the same boat.”

Gold provides a hedge against appreciation because it’s the standard of wealth … and has been since currency was first created. “We are seeing a U.S. fiscal situation where debt is going to increase, which will naturally push gold higher,” says Dana.

For investors unsure of where to start, Dana offers reassurance. “Buying and selling gold is pretty easy these days,” he says. Investors have the option of buying physical metals or coins, buying in paper form through ETFs, or buying by proxy through mining shares.

If that’s not a sign to go for the gold, we don’t know what is!

The Summit experience

We spoke to six other Summit faculty to get their takes on this year’s Summit.

Multi-family investor and syndicator Brad Sumrok says, “I thought I knew what to expect, but I was blown away. The Summit is a mind-expanding experience.”

A common thread was the value of connecting with other investors … even outside of formal sessions. “Dinners and hanging out were the most valuable part of the cruise,” says syndicator Michael Becker.

A third-year faculty member, Kyle Wilson, says, “The network and connections are unbelievable. We come to get good ideas and bounce ideas off of each other.”

David Sewell agrees that the Summit is a center for unbelievable growth and learning. “I learn something new every time I’m here.”

Like our gold-loving friends, David believes in the value of investing in real assets to gain protection from the volatile dollar. His chosen asset is agricultural real estate, specifically coffee and cacao farms in Latin America.

Because of high, steady demand, getting into the coffee and chocolate business is “almost a no-brainer,” David says.

His goal is to monetize his business away from U.S. dollars into gold … and he’s learned how to do that, he says, by attending the Summit and learning from the stellar faculty.

Both David and real estate expert Kathy Fetke, along with many other Summit attendees and faculty, know big changes are coming to the U.S. dollar and to resource availability around the world.

But, says Kathy, “The right advice can change everything.” It can be scary to realize the reality of things … but you can’t prepare for the future if you don’t know what’s coming.

The Summit is invaluable for Kathy because it provides a chance to hear about massive upcoming changes … and discover ways to prepare.

For example, Costa Rica and Ohio are both wonderful places for growing food and accessing clean water, two things Kathy says will be incredibly important to have in an uncertain future.

Kathy was also impressed by the young people at the Summit. “They give me confidence in the future,” she says.

Our long-time contributor Bob Helms, the grandfather of real estate, agrees. “I was very impressed with the information, energy, and knowledge of the young people,” he says.

Want to get on the boat next year? Get on our advanced notice list! We’ll send you updates as soon as they’re available.


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