2/19/12: Lessons Real Estate Investors Can Learn from the Stock Market

Dogs and cats.  Labor and Management.  Geeks and Suits.  Democrats and Republicans.

Do you see the similarity?  No?  Exactly.

So when someone (whom you’ll meet shortly) suggested that stock market day trading could teach valuable lessons to real estate investors, we said, “Riiiigghht.”

But being the open minded guys we are (remember: your mind is like a parachute – it only works when it’s open!), we decided to jump on a plane (actually, we rode inside) and fly to Salt Lake City.

Barking into the microphones for this episode of The Real Estate Guys™ radio show:

  • Your Big Dog host, Robert Helms
  • Your hissy co-host, Russell Gray
  • Special Guest, Rich Dad Paper Asset Advisor Andy Tanner

One of the reasons The Real Estate Guys™ radio show and podcast exists is because virtually all of the major media and personal finance gurus look at real estate investing as owning a home.  When it comes to wealth building, conventional “wisdom” is to buy and hold stocks, then hope and pray they go up over time.

We think real estate is the PERFECT investment (if you overlook tenants and toilets) because you can buy it with mostly the lender’s money, make the payment with the tenant’s income, put the extra cash in your pocket each month (when properly structured), get favorable tax breaks (keep more of your money), AND you’re hedged against inflation over the long term.  In fact, you could say that you benefit from inflation over the long term.   And even if the value drops, as long as it cash flows, sooner or later it will be paid off (if you’re into owning free and clear rental property).  What’s not to like?

Compare this to buy, hold, hope and pray stock investing, where most stocks don’t pay you cash each month.  There’s no tax advantages, unless they’re in your tax “advantaged” retirement (you know, the one that trades deferred taxation for converting your low taxed capital gains into highly taxed ordinary income – what a deal!).  And, unless you’re into options (which isn’t really buy and hold, it’s trading), you have to purchase your stocks with your own (often AFTER tax) money.  Ugh.

So you’re entire bet with most buy and hold stock investing is long term appreciation of the stock price, which is something over which you have NO control.  Have you ever tried to put new paint and landscaping on a stock to increase it’s curb appeal?

So, with this admittedly huge bias, we show up with our mobile microphones in Andy’s office.  He’s in trouble.

Then we meet Andy.  All six feet eight inches of him.

What do you say to a 6′ 8″ guy?

“Um, hello, sir” we say sheepishly as we reach out and watch our hands disappear into his huge paws.  “What would YOU like to talk about today?”

Now Andy is one of the nicest guys you’ll ever meet.  So before the microphones are on, we have a little back and forth, and before we even do the interview, we’re fans.

We talk technical analysis, fundamental analysis, diversification, cash flow, retirement accounts, the European debt crisis, and the investor’s mindset.  We have a GREAT time!

So listen in to the conversation and pull out some precious pearls of paper asset wisdom that you can apply to your own real estate investing.  And if you listen all the way through, Andy tells you how you can get exclusive access to his new book, 401kaos.  We haven’t read it yet, but we like the title!

Listen Now:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Listen Now:

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