Passive Real Estate Investing

On today’s episode we are doing something a little different. We are having one of Norada’s newer active clients interview Marco Santarelli with some common, and not-so-common questions. Be sure to listen for some history, thought provoking questions, and motivation to pull the trigger or keep the momentum going for yourself. If you missed our last episode, be sure to listen to The Effect of World Events on Your U.S. Real Estate – Lior Gantz. Enjoy the show! – – – – – – – – – – – – – – Download your FREE copy of: The Ultimate Guide to Passive Real Estate Investing. Get your FREE coffee mug by leaving us a Rating and Review on iTunes. Here’s how. See our available Turnkey Cash-Flow Rental Properties. Please give us a RATING & REVIEW (Thank you!) SUBSCRIBE on iTunes | Stitcher | Podcast Feed Learn more about your ad choices. Visit megaphone.fm/adchoices

I just got back from IMN’s 5th Annual Single Family Rental Investment Forum in Miami, Florida. I was on a panel there speaking. What I enjoy about these events is that I get to network with people from all around the country and even out of the country and talk about the future of real estate investing, what is happening in the markets, the tightening of inventory, the growing rental pool, the effects of policy, monetary and fiscal, as well as geopolitical events. There’s just a mixed bag of topics. It’s all fascinating. This is a good segue into today’s show. Sometimes I talk to you about tactical items, whether it be asset protection or evaluating a neighborhood or finding a good deal. But you need to counter that with understanding some strategic related topics. It’s good to understand the tactical side of things, but it’s also good to understand the bigger picture, the strategic items, things that can or will affect your real estate investing, the strategy you have, where you invest, when you invest, that kind of stuff. Today’s show is more about macroeconomic stuff. We’re bouncing all over the place talking about different subjects but they all tie in. It’s good to have that big picture, 50,000 foot level view, of your real estate investing. It doesn’t matter whether you don’t have property yet or you only have one property or maybe you have a large portfolio of a hundred units. It doesn’t matter. You just need to understand this even if it’s at a high level. Thomas Friedman, he is a US journalist but he’s really an author and three-time Pulitzer Prize winner. He’s a very smart guy. He’s written many books on the subject of world events, economics, geopolitics, and how that all plays into the US economy. I like one of his quotes. He said, “In Globalization 1.0, which began in 1492, the world went from the size large to size medium. In Globalization 2.0, the era that introduced us to multinational companies, it went from size medium to size small. Then somewhere around the year 2000 came Globalization 3.0. At that point, the world went from being small to tiny.” You can see that the smaller the world gets, the more we are affected and impacted by events that happen outside of our borders. All real estate may be local but that doesn’t necessarily shield one market from major events occurring thousands of miles away. In today’s global economy, important geopolitical events have consequences that can easily ripple across the planet. It can and will affect you. Election results, economic policies and international relations all have spillover effects on global real estate, whether directly or indirectly. These create incentives for buyers to be drawn toward or even repelled from various geographic markets. You’ve got to watch these bigger picture items because it can give you clues as to when or why to move into a market or when or why to move out of particular markets. Some factors are purely financial in nature, like changes in currency values or tax treatments. For example, the provincial government of British Columbia in Canada imposed a 15% tax on foreign investment last August. That’s a law that would have added $300,000 to the price of a $2 million home in the Vancouver market. We all know that Vancouver is very, very expensive. It’s much like the San Francisco market here in the US. There are many parallels to that. There’s a lot of investment capital coming in from other countries, foreign capital. As a result of this tax, house prices in the area fell 5.3% in November and that’s the largest monthly decline since 2012. From January 2016 to January 2017, house prices in Vancouver fell a whopping 18.9%, that’s almost 19% in one year. It reduced the foreign investment rate from 13% prior to August of last year to a low of about 4% right now. The foreign investment capital has dried up considerably and that lack of demand, that lack of capital has let prices slide in the Vancouver market. They’re really seeing a correction right now. Other policies that may make destinations less or more appealing by easing or restricting immigration, that’s one thing. Cross-border trade is another thing. In worst case scenarios, geopolitical events can escalate into full-fledged military conflicts and that could displace entire communities and endanger lives. By nearly any standard, 2016 was extraordinary. There were a lot of events going on politically, starting with Great Britain’s Brexit vote and then that rippled through major elections across Europe and the United States. Populism has been turning the status quo upside down. While it may be tempting to view populism as a rigid and inflexible movement extending across borders, this would be an oversimplification of the various forces that play in each election. It would encourage faulty assumptions about how developments may unfold in 2017 and beyond. Donald Trump may have earned his fortune in real estate, but his broader policy positions and their implications on US real estate will only begin to take focus after about his first year as President. It just takes that long for changes to be implemented and start taking effect. Over the first half of this year, 2017, there’s little doubt the US economy will enjoy stimulus largely from a combination of tax cuts and government spending on infrastructure and national defense. This in turn should boost consumer confidence and drive the economy higher along with inflation and interest rates. As long as our GDP growth is sustained and comes from more jobs and higher productivity, inflation will be and should be manageable. One hallmark of US real estate, this is something to consider, regardless of who holds the Presidency, is the fact that personal property rights here in the US are held sacred. Those property rights are extended equally to foreign nationals. It doesn’t matter if you’re a company or a person or whether you’re a US resident or a foreign national, these property rights are very important because it’s the rule of law that makes the US so appealing to foreign nationals. This appealing fact, especially to Chinese investors, is a huge draw for foreign capital. I just spoke with an investor in Sydney, Australia right before recording this here today. He’s in the process right now of getting pre-approved for financing so he can start buying a portfolio of properties here in the United States. He’s working with one of our investment counselors right now and putting those pieces in place. People get it and they will continue to invest in the US but in different places and to different degree. Often, geopolitical events in other parts of the world can tip the scales in such a way that a safe haven in US real estate will still attract inbound investment in spite of other disincentives such as the exchange rate of their currency into ours, which can be dramatic. You may want to consider yourself as a global real estate practitioner. It’s important to stay dialed into these and other stories. Doing so puts you in a much better position to spot opportunities and understand where future business may originate from and why. Today, I have an interesting guest who happened to be in Israel when I interviewed him. If you missed our last episode, be sure to listen to One Financial Advisor’s View on Real Estate Investing. Enjoy the show! – – – – – – – – – – – – – – Download your FREE copy of: The Ultimate Guide to Passive Real Estate Investing. Get your FREE coffee mug by leaving us a Rating and Review on iTunes. Here’s how. See our available Turnkey Cash-Flow Rental Properties. Please give us a RATING & REVIEW (Thank you!) SUBSCRIBE on iTunes | Stitcher | Podcast Feed Learn more about your ad choices. Visit megaphone.fm/adchoices

When it comes to real estate investing, most financial advisors shake their heads. But the financial services industry has turned itself into such a complex machine. It has caused confusion, encouraged mistakes, and justified hefty fees. And all for the benefit of its own bottom line. That reminds me of a quote from Donald Trump. He said, “Sometimes, your best investments are actually the ones you don’t make.”   What Most Financial Advisors Don’t Want Investors to Know About Real Estate In this article: What Investors Need to Know about the Financial Services Industry What a Financial Advisor and a Real Estate Investor Says How Brent Sutherland Began His Career as an Investor What’s So Good about Having Real Estate Investment Property Why Investors Need Better Financial Education Why Financial Advisors Don’t Include Real Estate in Your Investment Strategy Income Diversification vs. Portfolio Diversification Why Investors Need to Diversify Their Income More than Their Portfolio Investors and Planning for Retirement Risks You Have to Look Out for as a Real Estate Investor Where Can Real Estate Investors Find a Financial Advisor They Can Trust?   What Investors Need to Know about the Financial Services Industry Many financial advisors will discourage you from trying your hand at real estate investing. They’d say that the real estate market is volatile. It’s hard to find a real estate agent you can trust. And how do you plan to manage the day-to-day operations of your investment property? But the thing is they have little education in real estate. They don’t know how to find, buy, and manage investment properties. If you’re interested in residential or commercial real estate, speak with someone who knows his way around the industry.   What a Financial Advisor and a Real Estate Investor Says Today’s show is about financial advice, financial planners, Wall Street and—really—who do you believe? My guest today is Brent Sutherland from Ntellivest. Brent has worked in financial services for over 11 years, both in the corporate accounting and investment world. He has a boutique financial planning business today. His goal is to help you turn off the noise and challenge the traditional approach to financial planning and thinking. If you missed our last episode, be sure to listen to Think and Grow Rich for Real Estate Investors. Enjoy the show! – – – – – – – – – – – – – – Download your FREE copy of: The Ultimate Guide to Passive Real Estate Investing. Get your FREE coffee mug by leaving us a Rating and Review on iTunes. Here’s how. See our available Turnkey Cash-Flow Rental Properties. Please give us a RATING & REVIEW (Thank you!) SUBSCRIBE on iTunes | Stitcher | Podcast Feed Learn more about your ad choices. Visit megaphone.fm/adchoices

Think and Grow Rich is one of those books you see most often on the recommended reading list of people who have achieved really great things. The book was written by the commission of Andrew Carnegie. Based on interviews of over 500 people in history who now we know as great men in the early 20th century, he’s commissioned this book. He interviewed people, such as Henry Ford, J.P. Morgan, John D. Rockefeller, Alexander Graham Bell, Thomas Edison, Theodore Roosevelt, Wilbur Wright, Howard Taft. This book is amazing. I read it so long ago. It was first published in 1937. It has sold more than 70 million copies. It gives it the distinction of being the all-time best-seller in the personal success category. Today’s episode is about Think and Grow Rich for real estate investors. The perfect person to bring on for this is a person who I know and respect, a friend of mine. His name is Mani Vaya. Mani is the founder of 2000Books.com where he interviews some of today’s top authors. Over the last five years, Mani has read over 1,000 books in the field of business and personal development. Get this, over the last few years, he has been reading seven books a week, which basically averages out to one book per day. The first book that revolutionized his thinking was Napoleon Hill’s Think and Grow Rich. As a real estate investor, it made sense to bring him on to talk about the book and how it ties in with real estate investing. If you missed our last episode, be sure to listen to Proper Estate Planning for Real Estate Investors. Enjoy the show! – – – – – – – – – – – – – – Download your FREE copy of: The Ultimate Guide to Passive Real Estate Investing. Get your FREE coffee mug by leaving us a Rating and Review on iTunes. Here’s how. See our available Turnkey Cash-Flow Rental Properties. Please give us a RATING & REVIEW (Thank you!) SUBSCRIBE on iTunes | Stitcher | Podcast Feed Learn more about your ad choices. Visit megaphone.fm/adchoices

There’s a quote by Ambrose Bierce, “Death is not the end. There remains the litigation over the estate.” With this quote from this journalist and writer, today’s show is about proper estate planning for real estate investors. This is something I’ve been wanting to do for a while because I’ve realized it’s a little bit of a gap in the content that I’ve been putting out. Today, I brought on a guest who I found out about through a friend of mine. His name is Jules Martin Haas. He is a New York City based lawyer who provides clients with legal representation in various areas of law including real estate, trusts and estates, probate estate planning, and business law. With that amount of over regulation that we have out today, it’s very important to have a good attorney. If you missed our last episode, be sure to listen to Rental Income Protection – Sky Mikesell. Enjoy the show! – – – – – – – – – – – – – – Download your FREE copy of: The Ultimate Guide to Passive Real Estate Investing. Get your FREE coffee mug by leaving us a Rating and Review on iTunes. Here’s how. See our available Turnkey Cash-Flow Rental Properties. Please give us a RATING & REVIEW (Thank you!) SUBSCRIBE on iTunes | Stitcher | Podcast Feed Learn more about your ad choices. Visit megaphone.fm/adchoices

On today’s show, we have an interesting topic. It’s about how to protect your rental income. I have worked with this person for quite a while and I wanted to bring him on the show because he has actually been part of a new company that is offering a rental income product. It might be something of great interest to you, especially depending on the size of your portfolio and where it’s located. If you missed our last episode, be sure to listen to Wealth, Wall Street and Real Assets with Buck Joffrey. Enjoy the show! – – – – – – – – – – – – – – Download your FREE copy of: The Ultimate Guide to Passive Real Estate Investing. Get your FREE coffee mug by leaving us a Rating and Review on iTunes. Here’s how. See our available Turnkey Cash-Flow Rental Properties. Please give us a RATING & REVIEW (Thank you!) SUBSCRIBE on iTunes | Stitcher | Podcast Feed Learn more about your ad choices. Visit megaphone.fm/adchoices

Today’s show is about wealth, Wall Street and real assets. I’ve brought Dr. Buck Joffrey on to the show to talk about this. Buck knows the old mantra of, “Investing in a diversified portfolio of stocks, bonds and mutual funds,” is simply outdated and dangerous, especially, for high paid professionals given the instability and the volatility in the markets today. He advocates entrepreneurship and investing, especially in hard assets and those that provide cashflow because that’s really the reliable way and the approach to building solid personal finance. I’m in line with his thinking and what he advocates. I want to get him on the show to talk about his perspective on these things. It was an interesting conversation, so I think you’ll thoroughly enjoy it. If you missed our last episode, be sure to listen to The Real Estate Investor Ladder of Success – Trevor McGregor. Enjoy the show! – – – – – – – – – – – – – – Download your FREE copy of: The Ultimate Guide to Passive Real Estate Investing. Get your FREE coffee mug by leaving us a Rating and Review on iTunes. Here’s how. See our available Turnkey Cash-Flow Rental Properties. Please give us a RATING & REVIEW (Thank you!) SUBSCRIBE on iTunes | Stitcher | Podcast Feed Learn more about your ad choices. Visit megaphone.fm/adchoices

Today, we have a very special show. It is not specifically about real estate per se, but it is tied to real estate investing, the psychology of it, and how you can be more successful in your real estate investing. I brought on someone who I truly admire, who I met back in Denver about three or four weeks ago. We were both speaking at an event, Joe Fairless’ Best Ever Real Estate Investing Conference. I was really impressed by Trevor McGregor, who is a Master Coach. Trevor has completed well over 10,000 coaching hours. He’s worked with hundreds of clients from around the world to achieve success and fulfillment, including Fortune 500 executives, entrepreneurs, real estate investors and world class professionals. His mission is to assist others to achieve better health and more wealth and freedom and contribution than they ever thought possible. This really resonated with me. If you missed our last episode, be sure to listen to Understanding Neighborhood Trends and Forecasting Property Values. Enjoy the show! – – – – – – – – – – – – – – Download your FREE copy of: The Ultimate Guide to Passive Real Estate Investing. Get your FREE coffee mug by leaving us a Rating and Review on iTunes. Here’s how. See our available Turnkey Cash-Flow Rental Properties. Please give us a RATING & REVIEW (Thank you!) SUBSCRIBE on iTunes | Stitcher | Podcast Feed Learn more about your ad choices. Visit megaphone.fm/adchoices

On today’s show, we have a special guest. He actually has been on our show before back in show number 35. I am bringing him back on today because he’s got some updates to share with us. This show is about things like forecasting property values, looking at appreciation trends and forecasts. My guest today is Dr. Andrew Schiller. Dr. Schiller is the founder, CEO and Chief Scientist of Location Inc. He is responsible for inventing the search and neighborhood matching algorithms that powers Neighborhood Scout, which has been covered by CNN, Bloomberg Business and The Wall Street Journal among others. If you missed our last episode, be sure to listen to How to Stay Inspired and Driven – John Lee Dumas. Enjoy the show! – – – – – – – – – – – – – – Download your FREE copy of: The Ultimate Guide to Passive Real Estate Investing. Get your FREE coffee mug by leaving us a Rating and Review on iTunes. Here’s how. See our available Turnkey Cash-Flow Rental Properties. Please give us a RATING & REVIEW (Thank you!) SUBSCRIBE on iTunes | Stitcher | Podcast Feed Learn more about your ad choices. Visit megaphone.fm/adchoices

Welcome to Passive Real Estate Investing. I’m your host, Marco Santarelli. On today’s show, I was able to get John Lee Dumas on for about fifteen minutes. Now, it was a relatively quick and somewhat rushed interview but I was fortunate to get him on. He’s a very busy guy. He does a daily podcast with some of the most successful business entrepreneurs. If you’re in business, you can learn a lot from his show, although I have a lot of trouble keeping up with seven episodes a week. One thing that came out of this interview with John is his passion and that’s one thing that came through. We talked about it for a little bit. It seems that as he failed in his journey, it was because of a lack of passion. As I look around at other people, I see that people who are just getting by or coasting in life seem to have lack of desire, lack of passion, lack of drive and their just not inspired. It blows me away. I used to think that it’s because people don’t actually write meaningful, smart, specific goals. But I think there’s more to it than that. I think it all starts with a desire and a passion to get something done or achieve or accomplish something greater. It’s an interesting interview, as short as it is. But a few things about passion in itself, I had to look up the definition of passion and figure out what exactly does that mean. But really, passion is the energy that keeps us going. It fills us with meaning and happiness and excitement and anticipation. Passion is a powerful force, like energy. It motivates us and moves us in accomplishing anything that you set your mind to. This can be in work, in life. It helps you to enjoy life to the fullest extent possible. Ultimately, passion is the driving force behind success and happiness that allows us all to live better lives. I love quotes. I should start more reading quotes actually. There are some really good quotes out there related to passion. From Benjamin Franklin, for example: “If passion drives you, let reason hold the reins.” Jean-Paul Sartre: “We must act out of passion before we can feel it.” That’s very interesting. Barbara Corcoran from Shark Tank: “You can’t fake passion.” T.S. Elliot: “It is obvious that we can no more explain our passion to a person who has never experienced it than we can explain light to the blind.” The famous singer Jon Bon Jovi said: “Nothing is as important as passion. No matter what you want to do with your life, be passionate.” Mia Hamm said: “If you don’t love what you do, you won’t do it with much conviction or passion.” One of my personal favorites here is a quote on passion from a man who clearly had way more talent than he claims in his quote. He says: “I have no special talents. I am only passionately curious.” That was Albert Einstein. The passion you have for something really determines not only how successful you will be at it but also how far you’re willing to go to get to where you want to be. Think about that. If you missed our last episode, be sure to listen to New Construction Fourplexes in US Growth Markets. Enjoy the show! – – – – – – – – – – – – – – Download your FREE copy of: The Ultimate Guide to Passive Real Estate Investing. Get your FREE coffee mug by leaving us a Rating and Review on iTunes. Here’s how. See our available Turnkey Cash-Flow Rental Properties. Please give us a RATING & REVIEW (Thank you!) SUBSCRIBE on iTunes | Stitcher | Podcast Feed Learn more about your ad choices. Visit megaphone.fm/adchoices