How To Invest In Real Estate Without Making These Mistakes - Robert Kiyosaki [The Rich Dad Radio]

this is the rich dad radio show the good news and bad news about money here's Robert Kiyosaki hello hello hello our BTO sake about money and that theme song is you're so vain and I think it's a appropriate song for today's radio show because as you know rich dad it's about the good news and the bad news and we're not into the the hype you know the all good news good news good news and you get rich quick and all that stuff and today we're talking about one of my favorite subjects is the subject of real estate and the reason I planed the song you're so vain is I meet so many you know what idiots who come up to me ah I think I'll jump into real estate I'm going real estate it's not the stock market oh you know I bought a couple of properties I've done you know I've bought four or five properties I know what I'm doing I said with that residential yeah but I I know real estate remember those guys can I remember those so they think real estate is this flip and flop type of activity so we have some great guests but with first chemist now back from Peru and Mako welcome thank you thank you we had two fantastic rich woman events I'll tell you the Rich Dad brand in Latin America I had no idea the frenetic miss and the frenzy and it's it's just exploding and and people are looking for education and they're hungry for real through financial education yeah exciting that comes up because what we're going to be talking about different financial education and financial hype you know you see I'm an infomercials every single day and I watch them I get excited about him you know got it's the same formula you got some guy you know I won't mention his name but he's a new guy there's always a new guy coming up every year they come up and they go in the same formula so you have Joe Schmo a new guy good-looking guy is good-looking wife they go and then and the interviewer yeah I had 19 and I know I'm multi millionaire flipping real estate you know holy moly you know and then it's the same formula everybody wants to get rich quick and thank God you know we've done our best at the Rich Dad company to avoid that because there's a different name flipping and flopping and saving some hot chick and some hot young guy up there promising you can get rich quick and real estate and it does happen I guess occasionally but not for the long term because eventually your stupidity will catch you and more you more your vanity yeah I can do this you know I've invested a couple of properties I have a master's degree in accounting or something and they really are so vain and real estate is a very sophisticated game so I guess today our longtime friends probably some of the oldest friends the Rich Dad company has had I mean we were so desperate for publicity that I actually flew to wherever you guys were located and went on the rich the rich real estate guys radio show did my first infomercial or promo or PR event you know basically talking about Rich Dad Poor Dad so and we've been friends for years and they've now been elevated to the highest category of person at the rich dad company is what Donald Trump says are they good people and one of my first things I met with them when I met with Donald Trump he was asking his friends and says is Robert Kiyosaki a good people that's all he cares about and doesn't check you out beyond that so somebody says you're a good person he'll check you out but as you know there's a lot of bad people out there they will steal from their mother so anyway we have Robert Helms and Russell gray they're the Coles whole co-hosts and a real estate guys radio show and we're going to be talking about the dark side of real estate but also the good side because don't we love this game right oh my gosh yes so welcome to the program mr. Helms thank you sir welcome welcome your background of me guys you know congratulations you guys just want some huge award with Hilton or something right well we're doing a lot and it's you know I love the theme of this show because is we're all about getting wealthy in real estate but the quickly part is the challenge it takes years and years and years to build up a brand to build up a reputation why would it be any different to build up a great stream of cash flow or a great pile equity it takes time yeah how many years have you been doing this Robert so the radio shows now is 22nd yeah and I first guys among the first are our first big get if you will when we were just done one radio station back then and it's funny I remember we expected you to call in and our receptionist said your guest is in the lobby and no it was awesome we had just finished your book then right and couldn't believe it like everybody and and that led to a very long and wonderful relationship we've had we just always appreciated you guys and your message and your integrity and well and what we appreciate about you Robert and Russell or that you are the real deal you practice what you preach you don't just talk about real estate you are real estate investors your real estate developers and that's and that is crucial to us because we want real teachers who are doing the real thing not fake teachers who talk about it but don't do it so anyway this is Robert Helms how long have you been in real estate all your life pretty much about my first property when I was 23 I wish I had what bottom was 18 I wish we had kept it right properties in fact I remember when you're on the summit we had with this panel where we had Ken McElroy and Kim and my dad and we had all had the same thing in common as we all started with a little two-bedroom yes and it's like that's where it starts yes you don't have to start with grandeur start started there too yeah exactly and and you know I think people swing for the fences today a nice night I think you're absolutely right that's one of the one of the myths or one of the mistakes people make is they think they have to go big when they have no experience no education and they wonder why they lose money with small money with small cash they're so vain they're so fain I can't believe it one of our former X partners I'm a real estate investor so how many properties are I have I have owned three homes so did you live in them yes I'm a professional that Russell you can't talk to idiot Russell welcome to the program Russell gray real estate guy yeah oh thanks for having me I I'm a little bit different than Robert Helms because I didn't grow up in a real estate family I did buy my first property when I was 19 so I meet you there yeah first rental property when I was 24 but what I really am famous for is being the king of mistakes and you know you can't be you can't be the king I'm the queen I don't know I've made a lot of mistakes and I think probably the biggest mistake that I made along the way besides selling properties not realizing that I should have been collecting them so I was excited about the equity and I wanted to put the equity into business and I didn't know how to keep things separate but I think the biggest thing for me talking about vanity is that I always thought I was smart enough to figure things out and instead of what now that I've had a chance to be around many many successful people the one of the common denominators that I see about really successful people is they're humble they ask for help they ask questions they listen intently and then they think about what was said and they trust their own judgement and I was none of those things and so because of that I made a lot of mistakes but but I learned I think I've learned and we're obviously doing things better now I would say for Kim and I we've never lost money in real estate but we have made a lot of mistakes yes and our mistakes really haven't really come from our side of it necessarily it came because we trusted people yeah and every realist I think the humility of it all humbleness is anybody who's successful in anything has been into the scientific term for fornications I got screwed you know everybody has been screwed and when you get screwed I tell you it's you know I trusted him or her how could they have done that to me have you had that oh my gosh the show's not long enough to go into that we have and and it's not just on the transactions side I see the same thing on the education side they lead you down a path people that may or may not have any experience that doesn't matter they flashed the checks in the front of the room that's how you know when you start seeing check after check after check in the PowerPoint presentation you know I say how do you get a check for yours a check for a 50,000 from the title company well you know what if I deposit 50,000 the title company and say I've changed my mind what do they do they send me a check in my name from the title company so those are hard to get but it's such a good point and Trust is the thing that takes time to build yeah well that's are they good people I think that's what I mean one of our key lessons has been oftentimes we trust it or we don't verify so when we take art when I take my eye off the game and off the numbers and all of a sudden I'm over trusting and giving too much responsibility and then it comes back to bite me so that's a lesson I'm trusting I've now learned this lesson that I will I will continue to trust but I will verify it's so critical yeah so Russell you know I mean you amaze me because you're one of the smartest guys I know I mean academia - like a little computer but you didn't finish college did you know I was too impatient I'd been raised by a man that had dropped out of college smart I mean he got a scholarship free ride to Stanford very smart man but I think I came along and I don't kind of screwed things up for him so he and my mom dropped out and he went into work but but in his late 30s he started a high tech company in Silicon Valley took it public and she was right yeah I was right about that time as I was watching his career and I just felt like I tried college and I played one quarter of football and then you know I just want to get married I want it so I started a business and bought a house got married I did all that by the time I was 19 and then I sold out of the business and I sold the property and I discovered equity I found out that I made more money on in the equity on the business and the property than I did and actually both my wife and I working full-time for that same period of time so that that kind of got the bug there and in and I think the advantage that I had because I didn't have the patience to go to school was that I always felt disadvantaged so I became a voracious student and I just you're amazed I mean well I I need to know something I call Russell yeah I just I you know I I read all the time I study I'd like to listen to smart people huh you know in the beginning I was afraid to get into conversations and over time it was one of your events Robert you you I ended up seated next to Richard Duncan PhD economist you know I told this story on our show several times and I was just we had gotten destroyed in 2008 and it was because of my ignorance of what was going on in the bond market I didn't understand the bond market you did the the gold and we're all versus the u.s. gold versus US dollar event here in in in Scottsdale and I ended up seated with Richard and he was saying that he thought I was going to go to five dollars a barrel and gold was gonna go to five thousand and I said you know I'm Way out of my league here but I can understand how either one of those things can happen but I'm struggling to understand how they both happen at the same time and he looked at me and he goes that's a good point and I was like wow I just made a good point but but what did that it gave me the courage to get into conversations and from that point on I learned a lot faster because I wasn't afraid to talk to smart people hey so how about you I mean what is what is your path when you you know when I came and I meet people okay I should jump into real estate you know I want to I would I just get some handcuffs and tie them down and wake up yeah well it's the same as Robert saying I mean I started with a little two-bedroom one-bath house and then we went to another single-family another single-family it was a it was a process there is no get-rich-quick there's just not if they're telling you you can get rich quick in real estate I would run I mean it's been a process the formula is the same for the two-bedroom one-bath house and for the 200 unit apartment building the the formula is the same but it takes time it takes making mistakes in mint as you know we've made all the mistakes as you guys have the tenant moves out I raise the rent I raise it too far and then nobody rents or how about the tenant moved out with all our appliances yeah we had that we also had a piping we had a property manager who started his own business on our credit card from the apartment building and bought microwaves and and ovens and fools and started selling them and I mean we had all sorts of things happen we've had tenants move out in the middle of the night oh my gosh yeah but but it's a process and and that's why we can all continue to keep investing and keep buying real estate because we've made all these mistakes and we have a whole whole thing of a bag of tricks that we can pull from when we need so we come back I'm gonna be we're talking this is Robert Kiyosaki the rest a radio show the good news and bad news about money we love real estate we've made fortunes out of all of it but there's a lot of bad news that went right behind of it and again every time I see these idiots who just jump right in and they bet all their money you know they're gonna get hammered and the reason I say that is we're gonna talk about next how do you know the bubble is about to burst the end is near because we you know we're old enough to have seen the booms and the busts and I think we're cruising up to one of the biggest busts in world history so stay tuned once again does the Rich Dad radio show the good news and bad news about money our guests are Robert Helms and Russell gray Coulson co-hosts of the real the real estate guys radio show and also there's some of that scene real estate guys Cruz which I highly recommend if you're really dedicated to learning and not flipping and flopping all over the place so wait come back we'll be talking about a lot of things but once you guys think of the moment in the break what is the biggest BS blue sky pitch you've ever seen because we've seen them all these guys get up there these guys get up there that generally a very attractive or good-looking husband and wife and all this and the suckers float in with checks and credit cards it's such BS we'll be right back welcome back Robert Kiyosaki the richest a radio show the good news and bad news about money and once again that's Carly Simon's song you're so vain and I'm talking to you all you want to be a real estate investors out there I play this this song because I meet so many people who are so vain you know all real estate yeah I made some money and I'm just going to jump right in the other guy that gets me as a says you know I say how many how many questions have you taken in real estate investing they go I have a real estate license well that means you're an idiot that's all that means to me what does real estate license have to do with real estate investing zero I mean I can't believe how vain these guys are I you know that most real estate agents own nothing and they're giving you advice on investing so that's why I'm really glad we're having this program I guess today a Robert Helms Russell gray the real estate guys radio show please tune in to their show because they're more specifically on the professional real estate investor and once again Elissa third-richest a radio show anytime anywhere on iTunes or androids and all our programs are archived at Rich Dad radio.com we archive them because we're only an education company we have nothing to sell and that means we're education if you listen to this program one more time or two more times you'll be twice as smart as well as one time but most importantly friends family and business associates especially a brother-in-law a few hours of things that go jump in and invest in real estate because the market is hot you're about to get hammered so it's very enjoyable cuz it's the dark side of our business any comments Kim well I think I just think it's interesting and and I love having Robert and Russell here because they are the real deal and they are the real estate guys and they are practicing what they preach they've been investing since they were 19 and 23 years old so they know what they're doing but I'm just I was just looking at this article and I'm like where does this advice come from so they're talking about if a recession comes and if there's a dip in the real estate market or the recession comes what should you do well if you this here's advice well if you own property or assets sell some so that you have cash okay how hard is it to find a cash flowing property Robert how hard is it oh my god it's hard it is hard it's getting harder yes and that's one of the keys this is such an important topic because if you think we're near the top there are things you can do but it's probably not the stuff you're gonna read in most articles written by a journalist that makes thirty two hundred dollars a week but why would you sell when interest rates are near zero I I think that the big thing is how people approach the problem and this is where you guys rich ad have really been thought leaders because most people look at investing as trading buy low sell high exactly they've been conditioned to buy low sell high that produces commissions for the brokers that produces capital gains for the taxman and it produces cash that feeds the bankers and so the education has been slanted in its Wall Street education but people approach real estate the same way you have a completely different approach which is more fundamental approach which is the income and if you focus on the income you have staying power you can ride the ups and downs the price doesn't matter what matters is the cash flow and as long as it's positive you're in and over the long term even just the pay down of the loan and modest inflation will build reliable resilient wealth but people don't think that way even in structured finance that we control yeah that's why I like it I mean even in 2008 when the whole thing came crashing down we were we were fine we were fine we took you know there was little dips because people couldn't afford some of the rents and so there were some dips but we were we were okay we it's still cash flowed it's still we didn't have let's go to the fun part and commercial real estate funded by private equity it's going to be the biggest hit like Australia I think they have 12 million cranes of the sky right now crazy you know I get Phoenix every single every single postage stamp of land is being built upon right now that's commercial it's not like not a single family a little guy building a little rental property right these are very big projects funded by low interest rates and I understand the game but and just before the bubble burst is when all the fruits and fruitcakes come the fruit flies come flying out there so what is one of the worst you know like 2007 was a great time because you all know was gonna come down because everybody was into flippin real estate right so what was one of the worst things you saw Robert during that period us before the crash of 2008 well Russell remember this we were at an event and there was a guy on stage guaranteeing those that's the word that's the word I guarantee this property will go up in value we looked at each other like that's a problem yeah I remember you talking about how when the gal at the checkout counter at the grocery store is giving you a realistic advice you know it's too late she's just got a real estate license that's a clue or when or when people couldn't afford a six hundred dollar a month rent but they could go down the street and buy a three hundred thousand dollar house for nothing down and no qualifying crazy the worst pictures you saw are the most interesting pictures should I say well III think that you had people remember the days in Las Vegas yeah these condo developers and you would literally stand in line for the right to buy a property that was overpriced and you would get in and you'd make your deposit and the entire game was to control as many of those units as you could with the idea that down the road even later in the same day you could flip out of it and make money because of the way these things were being rolled out and so it was all predicated around this insane demand that had no basis in fundamentals or common sense but it was like a feeding frenzy and people got so caught up in it they stopped thinking they were they were like they were like animals feeding and and trying to trying to get their place in line and when you start seeing that and it happens on the lending side to lenders become so desperate to loan they lower the lending guidelines they raise they'll lower the downpayment raise the LTV they they make it easier and easier to get the loan without providing proper documentation when you start seeing these things happen in the market you know that it's this last flurry like a star that's about to you know implode and that's an all markets and like the stock market's about I think we're about two years out from the stock market doing the same thing it's gonna get so exciting and everybody's gonna jump and are you are you seeing this happening today yeah oh yeah you you definitely see it and the thing is it can be great because you can take advantage of some of the easy lending to excess equity you don't have to sell the property to get liquid and be ready for the next thing but when you do you just need to make sure you're paying attention to the cash flow and that's the thing you guys have just been always the thought leaders on so Kim what's the worst pitch yes well we don't have enough time but I do remember those really FAT FAT FAT brochures of these new right new development here's this this fancy fancy brochure and they're gonna guarantee you they're gonna guarantee you an 8% return on your money guarantees now I'm like how do you guarantee an 8% return as Kenny says the bigger the brochure the worst brochures run and that 8% they were counting on getting more and more people in to to buy so that those people would fund the 8% of the people so it's kind of a Ponzi scheme yeah the funniest one I saw is because I'm you know the real estate guys you guys know more about real estate Kenny knows Kim knows more about real say that I do but I do know shipping so I was down with Trump this is just before the crash and those guys had taken an old passenger liner and condo comfort I go up to this hot young thing you know nice brochure nice Adi you know I said tell me about this oh and she's telling me about how this condo will float through the world and you can get on and get off and all this stuff and I said how's the ship she didn't know and I went my degree is in naval architecture you see a ship like those you know these big passenger liners they should only exist for 15 years yeah useful lights are finished so the only place that boats should have gone was not to a condo they should have been sailed over the Taiwan and cut up for scrap the man to a new boat but she was selling these condos and these guys were lining up to buy condos so they could float around the world and I said holy mackerel you know there's a sucker born every minute well my thing is the vanity of it that's what and the other thing is that people just don't know they don't know what questions to ask they have no idea they just get sucked into the deal and sucked into this really you're gonna make money yeah that's why you need that Richard Thomas guy well he is the only guy older than you guys as far as friends the rich tell ya buddy and he got so excited listening to talk about real estate says oh good I invested in real estate and it comes up in his shows Kim Kenny McElroy and I the property he says he says oh it's a property in New Mexico it's in New Mexico look look at the property it's in New Mexico it's gonna be really really good and we're looking at it we go Richard that's not New Mexico that's Mexico so thank God he got out of it but dude I mean is that that's the vanity of it they just think they want to get rich quick there's no there's no get rich quick let's talk about our favorite tea guy on TV I mean I don't know we should mention his name but because we'll get sued by these guys but here's a tiny little Vietnamese guy and this is how many years ago many many many hours ago at least thirty we met him 15 years ago long afterwards in his little tiny office in Las Vegas but he was the guy there for 15 minutes he'd be on his yacht with all you know models and girls right twice as tall as him and we're built like you know what little bikinis and here is on this yacht pitching a real estate deal yeah I kind of wonder who showed up at that seminar you know yeah I think that you're making a great point about how to recognize a bad deal when someone has to hype you up on getting rich and this extravagant lifestyles of the rich and famous they're not talking about the fundamentals of the deal the fundamentals of the market what's going on the economy oh that's boring I totally get it right but if that's what they're relying on to get you to do the deal they're trying to get you to emotional state the brain checks out then you will sign on the dotted line dreaming hoping about something that isn't real and not looking at what is real and you should be painted and that's why you've got to get the financial education you got to start small take baby steps no it's a process it's gonna take years but you can become financially free with cash flow but it's not it's not a quick fix there's no like anything like you're not gonna lose 20 pounds in two weeks if you want to get weight off it takes time if you want to be healthier it takes time if you want to be wealthy you can do it absolutely it's just slow and steady wins the race yeah so what kind of programs do you guys put on the real estate guys you know for years we've taught seminars and things but we're not really gurus we're more journalists on our show that's really fundamental guys yeah and I think arts and balls peanut and butter that's it like we don't have a seminar rarely without an attorney that speaks you know and and because you have to have that sobering side yes you can make a lot of money but there's a lot of work our our primary thing that we teach now is real estate syndication how to go bigger syndication so rather than buy something just in your own account if you syndicate you get together with other folks and some people put in the time and talent lost money other people's money some people order the money so a passive investor might put $50,000 in a deal and the syndicator or the sponsor or the promoter is the one who finds the deal that's the deal puts together the team again you have to be just as careful as in an individual investing maybe more so but there are attorneys involved it's professional investors usually but you also educate the investors the people that are you're raising money from you educate them about the deal you both the pros the cons all of it because you don't want you don't want stupid people giving you money that could be loved the most as we see the most expensive check you ever took is one if they don't understand so you go to a process to make sure they understand and you have to make sure it works for them that it's in line with their goals and with their ability and so it's not rocket science but it takes time to figure it out and it is there's a lot of legalities around it right if I'm a securities laws but that's not to scare people away that's to say it's another way that you can in our will collapse timeframes and be able to build wealth with real estate possibly or actively so it's right here it can't somebody would absolutely no education show up well they can show up but they're not going to do very well until they take the time can't somebody with no education you don't have to be already an ambassador to take your class oh no no no no that's what I'm getting at you know I get I lost my temper believe it or not I lost my temper you shocker and that's his friend of mine and she's been around us since the start and I said have you ever gone to a real estate seminar she goes no and all she does is [ __ ] about our student loan debt you know that doesn't cost you anything just go sit there on the wall got too much debt and they say stuck yeah in their past mistakes they made when there were 25 years old signing up for a master's degree and I don't you know that's I've been saying till I'm really kind of tired of this because if a person's gonna be that stuck now why do I even bother talking to them yet that's part of the business right that's it well especially today because there's so much information available I mean it there's information everywhere if you want to learn you can learn you know I'm asking us a self-taught guy and there's lots of books there's lots of tapes there's lots of seminars and you know the best stuff you often have to pay for but it you don't have to pay a lot well even to that point when we met Ken McElroy okay so we had properties we had we had not a lot maybe a hundred units and most of our properties were like 20 units 30 units and I said Kenny Oh finally somebody that understands property management because that's where he came from was property management I said finally somebody that understands our philosophy and our model and he I said would you please manage our properties because I couldn't manage any more I was I was up to my limit and he looked at me and he said no I can't manage your properties because I only manage properties of a hundred units or more per building right and so that was my impetus to start getting more educated and understand now how to buy a hundred unit apartment building versus a 20 and that's another that's another game Kenny what's kind of cold water cold water on our face let's you know you guys you're saying you got your small and that's another slap in the face so a few years later you know Kim Kim's Kimberly Kimberly the Guru on the real estate side of our family yes and she's taking a thing bigger and bigger and bigger and I'm walking through Phoenix our plus 1 becomes running up to me she says I've got this really hot deal it's a three-bedroom two-bath house in Chandler she says I want you to invest in it and I just froze like a deer in headlights because I didn't want to bust I said so finally I said I'm sorry but I don't she says I thought you a real-estate guy I thought sure bolused she got so livid because I don't look at a small deal yeah Jun I mean I said I don't have time to do a small deal now 30 years ago I had all the time in the world and that's another lesson where as we see other guys who jump in they do this mega deals ever done a small well it's like the cash flow game you watch the behavior on the cash flow game and they have a little bit of money and they go for the big deal they take the big deal cards I think men do that more than women actually but that's true women are better at real estate Matic pragmatic they want that cash flow that bottom line you know they're also good with a gut check right back to you know the people out there that aren't as scrupulous and there's a lot of those folks out there but you can kind of sniff them out you know eventually you'll figure it out okay so we come back we're gonna bypass ask Robert because we have the two the two smartest guys I know in real estate Russell gray and Robert Helms wholesale real estate guys radio show they also do seminars but they're really but they're elevated to the good guys are they're good people and that's what Trump said to me are they good people and their website is real estate guys radio.com real estate guys radio.com and so what come back we'll be talking about the opportunities we see in the future and what does your crystal ball say so we come back for all of those of you even if you don't have any real estate yet your time is coming because in the next crash is when you get rich we'll be right back welcome back Robert Kiyosaki the radio show the good news and bad news about money once again that song is you're so vain and we are talking about you and me and everybody else everybody wants to get rich quick they don't want to pay the price and once it getting close to the risk a radio show anytime anywhere on iTunes or androids and all of our programs are archived there Rich Dad radio.com we archive them because if you listen to this program again you'll learn even more especially if you you're sick and tired of just doing nothing I'm sick and tired of people like that I meant oh good time um you know I lost somebody of you know we've all lost they want they want the quick answer they want the quick fix yes and so they watch these TV shows and there's a new guy on TV I think he's kind of funny but he's a new guy is it's always a new guy he's a message got so many TV shows with flip the house everybody making millions quick and all this you know it's about to come to an end so once again listen to the real estate guys Robert Helms the really guys show real estate guys radio.com and you have your summit at sea which I go to because it's an intense intense five to six day immersion into real real estate investors not these show guys so anyway we're going to talk about what you see coming in the future so Kim what do you see coming in the future well we're actually working on something that we see coming in the future and that's senior housing and because we are these baby boomers that are getting older and older and they're gonna need assisted living so we're actually working on a project right now that we're taking a it's kind of interesting it's going from a fitness club which was the baby boomers you know drove the fitness club trend and now we're tearing that down and we're gonna build senior housing so same same customer just a little older Robert Helms on our earth was a chinkara no ginger Reno's residential assisted living home and yep for those of you I learned about the biggest boom coming which is all guy house and I was invited me on stage and I said well the person that should be here is Kim the only reason we're she's an assisted living she wants to make sure there's a place that will take me that all that belligerent cranky old men in there you know so please look at what's genes website a handle so the easiest way to reach gene probably since than an email right yeah so I guess it would be al F assisted living facilities at real estate guys radio.com and will send you information about gene and a webinar yes and you guys have done really successfully in hotels of all things right and yeah you know it's interesting because it's the same in Belize is the same client we talked about ways you can market to the affluent part of that's because there's less worried in case of a recession because the affluent still go on vacation they're gonna still pay for mom to be an assisted living but there's certain areas in real estate we saw this in the last downturn in the market we're in Belize the whole Caribbean was down 20% in tourism in 2009 but believe was down 1.8% and so what happens in the sister living is it's really not the occupant that is your client it's their family right and so what gene teaches is rather than just pick any assisted living you catered a little higher clientele because they have the budget to do it for us in resorts it's the same thing the multiples are good you know for us it's finding a market that makes sense with the directories correct where the systems are good that's why we affiliate with a big brand but we didn't start there right we start with a little houses and little by little you build up your education and today with the market changing I think we all feel the change coming you have to pay even more attention to what you're investing in yes yes so rut Russell what trends do you see well one second could you give a plug for your Belize property well absolutely we don't even talk about that on our show but on your show tell you that property every time I go down there I go why that was that was it was a mine mind-numbing project was oh my gosh yeah it's a lot of years a lot of great investors behind us but it's called mahogany Bay Village it's an amber Gursky Belize and mahogany Bay Village calm you can learn all about it yeah I see it come out of nothing there's a mangrove swamp and now as as Pele if you guys were there when there was nothing there was a couple old concrete houses I think that's the beauty of real estate you can actually see it where the stock all you see is terror you know I mean you don't they don't think anything but real estate is much harder than stocks I would say a thousand times harder oh yeah but your problems are bigger and your liabilities are bigger yeah that's that's why you don't want to jump into a big deal right away give that experience resume get that ballast yep slow and get the right relationships cuz you're ultimately you're not gonna know everything you know you've learned a lot working with Kenny Craig you know you get the right people yeah you know Robert and I knew that we needed somebody smarter than us and that's where Beth came from right so I think coming back to the question of you know what do we see a crystal ball yeah also you know I think that it's safe to say maybe interest rates continue to go down but that's kind of hard they're pretty low which means that there's a greater possibility they would go up rather than down if you know trying to save that we end up printing a lot of money that could end up meaning things that are core components like commodities and energy would go up the point of that is as what's been going on for a long time the poor or the middle class are going to continue to be stressed so if your customer is that you know working-class person and a rental property and that's what a lot of tenants are you want to make sure you're in marketplaces and product niches and price points where there's still people above you so in tough times they can come down to where you are yeah the other thing is of course we just talked about is having some type of an offering that caters to people actually will have money do have money and are going to be in a better position to weather the storm you know because you don't really have to prepare for good times and good times everything goes up everything is good in good times what you really have to do is be prepared for bad times and if they don't come it's better to be prepared to not have bad times than to have bad times and not be prepared it's a good point because we do not invest in high-end apartments because if there's a crash they're all going to move out to less so we're always middle-of-the-road yep yeah what makes sense be just slightly under median what we call recession resistant says people still it's one of the charts we use in our presentations is great and you alluded to this earlier Kim it was this big downturn in real estate prices in 2008 and nine god bless it but not the rents yeah they're pretty good yeah that's a big clue so once again you know the beautiful thing that you guys did was you Col branded right MOG on ebay who'd you call bran with I with done with the largest hotel companies in the world Hilton or a curio by Hilton that's one of the Hilton's 15 brands and it gives us all kinds of great stuff not only access to 72 million Hilton honor members but also just systems and training and technique and things we sure didn't know and and it's a boutique market we're the first branded hotel in our marketplace and we just thought you know these are people that know what they're doing the understand hospitality we've learned a lot about it but we certainly don't know as much as them and it's been it's been great you know part of it is real estate investors are Mavericks right we're we're those lone Wolf's and the health is a huge corporation so we it's a love-hate relationship they move slowly but they have so much experience it's really saved us a ton but don't you also have homeland guard I was living magazines yeah it's their sister public publication we're one of a handful of coastal living inspired residences and that coastal view magazines been out 20 years now and it's not a hotel brand but it really does cater to kind of our avatar the person who's looking to have that coastal life and it's been awesome people still investing with you yep we are mostly sold out and that has been a great process but there's still an opportunity and I think it's still a good opportunity one of the things that we have is lifestyle investing we call it so a lot of folks who will you know spend a few weeks or a few months down there and they can certainly do that and then when they decide not to do that it's in the rental program and they go yeah of the hotel the one thing I think that's important on that no excuse me just one second is Robert actually takes people down and shows them the market not just our project but all the other projects on the island because it's really important for somebody who's considering either buying as an end user or is it in that's for any investor they've got to go to the market you'd be amazed how many people buy property makes no sense this is just I'm just curious have you heard about this trend everybody wants everything delivered right so we've heard is that warehousing and storage facilities are gonna be a big trend coming because everybody wants it delivered to their house yeah you seen this I think so distribution is cute yeah and what happens a distribution is it is this accumulation of resources so there are some of those industrial and warehouse projects that aren't going to work or existing projects that get nudged out but it's a big part of it because there's more and more of that happening it's the age we live in and it's not just Amazon there's a ton of logistics companies and that's an area that's pretty exciting we went to the port in Savannah to look at exactly for that reason actually we found out we're a little late to the party for that port because there was a lot of warehousing being built already sure Savannah Savannah Savannah versus Charleston yes that's a great area because the Panama Canal which is my world and shipping Panama Canal the Chinese are making a huge investment again and you canal to get through right so there's always opportunity and the most important thing is do you hang out with the right people good people are they honest have they been through the mill educated or the experienced we also track record or they on TV with some hot bikinis you know I like that too but anyway it's I would just go to it I mean even if it's a little Asian guy with hot blondes in bikinis I go listen to what he has to say or she says you know both sides of the coin right I'm not against it dude I mean that this new guy come in from Las Vegas he's he's he's had his own TV show for a while he's talking about the same thing the formulas the same you know you'll get rich quick and nothing wrong with that but we as we all know things do change anyway oh thank you guys Robert Helms and Russell gray comp these guys and please look into what they're doing because they're the real real estate guys and thank you all for in this program we don't have who didn't have asked Robert because I'd rather have the real guys here so thank you for listening and have a good life and real estate bye

Channel: The Rich Dad Channel

Views: 832,011

Rating: 4.8581653 out of 5

Keywords: TheRichDadChannel, rich dad poor dad, motivational speakers, how to get rich, how to invest, passive income, cashflow game, real estate investing, real estate investing for beginners, robert kiyosaki, robert kiyosaki real estate investing, robert kiyosaki rich dad poor dad, passive income real estate, robert kiyosaki radio show, rich dad channel, investing in real estate, real estate investing 101, the real estate guys, how to invest in real estate for beginners

Id: A59IFiJyyDM

Length: 43min 0sec (2580 seconds)

Published: Wed Nov 27 2019