The Real Estate Blog with a Twist
Think You’re Diversified? The Most Common Mistake Investors Make
Sir John Templeton, respected investor, banker, and fund manager was on the right track when he said, “Diversify. In stocks and bonds, as in much else, there is safety in numbers.” From companies diversifying a product line to investors diversifying a portfolio, there is not only safety, but a much greater likelihood of growth when you have your money, assets, products – whatever – strategically allocated among different pieces of the pie.
My Kids Said the Darndest Things
Remember the show “Kids Say the Darndest Things” with Art Linkletter? I stumbled upon some of the darndest things that my four kids said growing up. Since Father’s Day was this month, I thought it would be fun to share with all of you fellow parents.
8 Days in China: Eating Frog and the Capitalist Front
I recently returned from an eight-day trip to China with seven of my “forum” group members, and boy am I still jet-lagged. The other day, I woke up at 1:30 in the afternoon after having gone to bed at 11:00 the night before. But the jet lag has been well worth the experiences I had in Beijing and Shanghai.
Adios to a Few Dodd-Frank Regulations (We Won’t Miss Ya!)
I was hoping to see this happen: Just last month, Congress voted to significantly roll back many of the Dodd-Frank regulations. Of course, not everyone is in agreement as to what should be kept and what should be rolled back, because, like always, there are at least two sides to every story.
Top 10 Shockingly Stupid Ways Elected Officials Waste Your Money
In 2010, $615,000 in federal funds were spent to digitize photographs, T-shirts, and concert tickets belonging to the Grateful Dead. Hippies, rejoice!
Can You Guess Which City Has the Best Rental ROI?
We often say that we invest in the “most profitable housing market in the country.” This means that we buy affordable homes, valued between $25,000 and $60,000, in the heartland of America. We’re not the only ones who know that this is the best market to be in.
The Lonely Life of a Real Estate Stock
In a recent article in the Wall Street Journal, “Real Estate Stocks Are on Sale, but No One Is Buying,” WSJ reporter Ken Brown discusses the underlying love-hate relationship investors have with real estate and the fact that real estate stocks are a lonely asset right now, waiting and hoping to be scooped up, in spite of the fact that they’re more affordable than ever. What gives?
Start Them Early
It’s indisputable: children are the future. If we don’t teach our youngest how to earn, save, and invest money, our future (and theirs!) could be in a boatload of trouble. What are you doing to help teach your kids, grandkids, or even great-grandkids about money?
What Losing $250,000 Taught Me — Part 3
This is conclusion to my three-part saga about how I lost money in a bad investment. (This was before Steve and I met and founded Hughes Capital. It was a painful experience, but of course, the greatest learning experiences usually are.) Be sure to read parts 1 and 2 before continuing with part 3.
Finland’s Test
I believe that most people are charitable. If we have the resources, and if we believe that our charity will make a difference, most of us don’t think twice about helping another person or family in need.
What Losing $250,000 Taught Me — Part 2
No one in their right mind enjoys feeling like they’ve been duped — or, worse yet, actually being duped. But, I’m here to tell you that it happens to the best of us, sometimes even after doing our due diligence and checking all the right boxes. This is the second article in a 3-part series in which I share my experiences and invaluable lessons learned as a result of having invested in a seemingly-profitable, winner-of-an-investment-deal gone bad.
What Losing $250,000 Taught Me — Part 1
Whenever I speak at an event, I often include the story of how I lost a big chunk of money in a bad investment. Why do I share this, when it could potentially cause people to doubt my judgement and skill as an investor?
Putting the Gun-Control Debate Into Perspective
I have tried to remain silent about this issue, but I cannot hold my tongue (or my typing fingers) any longer. I am a strong believer in our Second Amendment right to bear arms.
Stop Asking Children These Seven Questions
I recently started receiving Ozan Varol’s weekly blog posts. He is a self-proclaimed contrarian thinker. A few weeks ago, he sent this post on seven questions to stop asking children. The questions are terrific! I wish I had this 26 years ago to have made family dinner time with our four kids even more productive and interesting.
A Nice Day for a White Wedding
It was more of a white day for a nice wedding. My oldest son, Hayden, was married on March 24th at Donner Lake. While being married on a lake sounds like a wonderful idea, for those of you not familiar with Donner Lake, it lies smack in the middle of the inhospitable land that resulted in the tragic end of the infamous Donner Party.
Ivy League Investing: What Big Endowments Know that You Should, Too
If you’ve been to any of my investment presentations, you’ve heard me talk about the fact that billion-dollar university endowments like those run by Yale, Harvard, and Stanford (aka, some of the smartest people on the planet!) have moved heavily into non-traditional...
My Dinner with Dinesh
My wife Tanja and I had the honor of meeting and getting to hear from one of my idols, Dinesh D’Souza, at a dinner function a few weeks ago. Dinesh is an immigrant from Mumbai, India (formerly Bombay), and has had a very interesting career here in the United States where he has been a citizen for more than 27 years.
Capital Gains Loophole You Should Know About
Did you know that if you have an investment property you want to sell, but you don’t want to pay taxes on the capital gain, you can do what’s called a “1031 Exchange” and have the taxes deferred? That nice ol’ government agency that we all know and love — the IRS —...
The Greatest Gift to Leave Your Grandchild
What if I told you that you could give your children, grandchildren, and even your great-grandchildren an incredible, one-time gift that allows them to invest and compound money over their entire lifetime, completely tax-free?
Fresh Perspective for the EPA
It is really refreshing to hear Scott Pruitt, administrator of the Environmental Protection Agency, speak about helping the American people by being our partner rather than our adversary. The government is in place to serve and protect us, and to keep the law of the...
Do You Know Why Fannie Mae Is #1 in the World?
I don’t know if I am impressed or appalled by the fact that Fannie Mae and Freddie Mac are in the #1 and #3 positions in the world for the amount of money they make per employee. If the record was set by a private or public business, I would be impressed — as long as...
Not Just for the Rich: The Importance of Trusts
This week is all about trusts: Who needs them? How much do they cost? How much work are they — really? The short answers? The majority of adult Americans need a trust. They cost a few thousand dollars, but this small investment outweighs the devastating financial...
Why Do You Have to Know How Much Money I Make?
How much money do you have? How much money do you make? Why is it my business to know any of that stuff? That’s what someone asked us the other day when he was ready to invest into one of our funds. We wish it didn’t have to be our “business,” but the U.S....
Airman Hughes
My family and I just returned from a wonderful experience. My oldest son, Hayden, just graduated from his basic training in the United States Air Force. He is now known as Airman Hughes. I was told by a few others who had gone through the experience with a family...
Guardian Continues to Evolve and Get Better
Many of you in the small business world will not be surprised to hear that the Guardian investment model continues to evolve, always for the better, and in exciting ways for investors. As I was thinking about the word “evolution,” a funny personal story comes to...
Reverse Mortgages Debunked!
This week we’re bringing you an in-depth video where experienced mortgage broker, John Terveer, debunks the myths surrounding reverse mortgages and explains how they can be a useful tool in many situations. This video is a recording of one of Hughes Private Capital’s...
You Are a Survivor
Here’s a little bit of fun this Saturday: a look back for those of us who can remember the good ol’ days when we didn’t wear seatbelts or have Xboxes and spent all day outside, running around the neighborhood.
Free Market Is Always the Winner
This is what we talk about all the time: free markets almost always trump the government. Walter Williams, in the following article, does a great job of explaining why. For me, the free market always wins not just because of what Mr. Williams says, but also because...
As I Awoke
I awoke late on Sunday morning — it was after 9 a.m. Tanja and I had stayed up way past our bedtime watching the first six episodes of the new season of House of Cards, and I was jolted awake by my 100-pound, 4-year-old German Shepherd, having his 20th or 30th (I...
Guaranteed to Put a Smile on Your Face Today After Watching This
You know we don’t always have to cover something serious, educational, or political. Sometimes we can just enjoy something that makes us feel good on a Saturday morning at the start of the beautiful weekend ahead of us. That’s what we are going to do this Saturday....
Captured!
I had a realization the other day, that anytime I think of government, I think “bad,” I think “enemy.” I don’t see a solution, I can only see problems. But I already knew that. What hit me was the fact that it must be exactly the opposite for people who believe...
The Investing Option Advisors Don’t Want You to Know About
Why is it such a big secret? Most financial advisors don’t tell their clients about it, because it takes dollars away from their managed accounts. To be fair, not all financial advisors are guilty. Those who are looking out for their clients’ best interests will...
A Friend’s “Coming Out” Letter Inspires Us All
He is a fearless leader of exceptional character, and for the past two years, he’s been hiding something that few of us can understand. At a recent semi-annual business networking group meeting, H. Quincy Long, one of the group leaders, “came out of the closet,” as he…
How to Tell when Someone Is Lying
Q: How can you tell when a teenager -- or a politician -- is lying? A: Their lips are moving. Okay, seriously. How can you tell when a teenager is lying to you? The article below by Dr. Travis Bradberry, best-selling author and expert in emotional intelligence tests...
You Are All Wrong, You Are All Right
Every month, I look forward to the economic outlook article in Tom Henderson’s newsletter, and I like to share it with our readers as well. Tom has a way of using straight talk to break down complex subjects into simple terms. It usually isn’t much more complicated...
Not Everything Goes as Planned
There’s just no way around it: not everything works out the way we planned. In fact, when life just seems to be a series of ebbs and flows, I sometimes wonder if anything has ever worked out as planned. As CEO of Hughes Private Capital and co-manager of our...
Airbnb Fights Back
This is an interesting way to fight back. Airbnb is going to build their own apartments and lease them out to tenants who can, in turn, rent them out to Airbnb guests. There have been multiple attacks on Airbnb operators in various states and cities as of late — from...
Use the Wrong Pronoun, Go to Jail
In none other than the progressive blue state of California, it is now written in the Health and Safety Code for nursing homes and long-term care facilities that if you repeatedly use the wrong pronoun you can be sentenced to up to one year in prison. Is it just me,...
My Friend Debt
Like a great spouse, the “good” kind of debt (or leverage) can be your best friend when it comes to investing. And, like a not-so-great spouse, it can also be the friend you wish you had never met. Successfully leveraging debt has made many people fabulously...
One Last Mission: The Journey of a Lifetime
There are few things in life that make such a long-lasting impression they will stay with you forever. Recently, I was fortunate to have had such an experience when I accompanied 32 veterans to Washington, D.C. to visit their war memorials. It was a whirlwind...
Hughberry Leadership Opportunity: Send Us Your Candidates!
Hughberry, our senior assisted living company, is gearing up to welcome its share of “Silver Tsunami-ites” with beautiful, private, well-staffed assisted living residences. As the company continues to expand, we are seeking an entrepreneurial, experienced, passionate...
The Phone Call that Brought the Lady to Tears
A lady we contacted a few weeks ago was crying by the time we were done with the phone call. The good news is, they were tears of joy and not of sadness. Although her reaction was maybe more emotional than what we are used to, it wasn’t necessarily surprising....
How do you know you can trust us?
How many times have you heard someone tell you that they are honest? And it usually doesn’t stop there. Nope – after assuring you that they’re honest, they feel the need to go into all the reasons why they are so honest, how much they believe in integrity, and on...
Blockbuster Movie Flaw – Did You Catch It?
Several years ago, a Hollywood movie dominated theaters and raked in millions of dollars despite a serious but largely unnoticed flaw in the plot. Did you catch it? I didn’t, but Jason Morris, our very smart estate attorney and this week’s guest writer, did. Let me...
Could Your Roth IRA Be Better than a Sleeping Pill?
It has been declared by the Harvard Business School that Roth IRAs are the clear winner over traditional IRAs, but it’s probably not for the reasons you might guess. For some time now, I have also believed that Roth IRAs are better — but for a different reason...
Reconsidering the American Dream
Following the Great Recession, the American dream of homeownership was progressively sliding downward. Now, the dream is back and continues on an upward climb. Figures show that from 2015 to 2016, the number of non-homeowners (mostly renters) looking to purchase...
Buy a Street, Charge a Toll
Sometimes we have to pass along articles just for the entertainment value, but at least this article is real estate-based. Fox News reported that an entire street in San Francisco has been sold at a tax auction for a mere $90,000. Sounds like a good investment,...
3 Ways to Make Money with Real Estate
Owning income-producing real estate can be a lucrative investment. But have you ever stopped to think about how and where your money is actually made? One of the big advantages of owning income-producing real estate is that it allows an investor to receive a return...
Yellen’s Prediction a Little “Off”
I have great news! All of you out there who are worried about another economic downturn can rest easy. Janet Yellen said there’s no reason to worry about another financial crisis, so it must be true. If only it were that easy! How old does she think I am? I just...
Biggest Little Cup Fundraiser & Golf Tournament
We were proud to sponsor the first-ever Biggest Little Cup Fundraiser & Golf Tournament benefitting The Club at ArrowCreek. Golfers had a tee-rific time playing the beautiful 18-hole course while enjoying the hosted cocktails, gifts, contest and prizes. A few lucky participants also won big during the first Helicopter Golf Ball Drop.
What’s Better—Owning or Renting?
I have been having this discussion with my 25-year-old daughter, Kayla, for about the last year. Should she buy a home or just keep renting? Tradition says, “Own your home and don’t throw money down the drain on rent.” You will have the pride of homeownership and...
How Does Your State Rank?
Are people fleeing your state or moving in? What is your overall tax burden compared to the other 49 states? What is your state’s economic outlook based on 15 variables that are highly influenced by your state legislature? Those questions, and a few more, are...
Give a Man a Fish…
A few weeks back, we talked about Takers and Producers. Below is another example of what good can happen when we take action to eliminate pure giveaways in our society… to stop the enablement of the Takers. Deep down, it is our human nature to want to work and be...
The Lawyer or Zillow: Who’s Right?
Back in the good old days, Real Estate Agents had all the power. They had information that no one else had, so you had no choice but to hire an agent if you wanted to buy or sell real estate. On the rare occasion I could get my hands on one of the MLS books that...
Who Really Sells Gas to 7-Eleven?
For years, I have been under the impression that the gas sold at 7-Eleven was owned by Venezuela. This assumption led me to believe that purchasing their gas would be supporting the previous dictatorship regime of Hugo Chavez, which led me to take my business...
Las Vegas Olympics: Worth a Trip to the ER?
9 events, 3 competitors, 1 concussion If you read my email a few weeks ago, I told you about how I hit my back against the wall playing racquetball and had to go to the emergency room for what I thought was a stroke! (No worries, it ended up being a concussion). ...
What is so Great About Income Producing Real Estate?
I learned this lesson the hard way beginning back in 2007. Actually, I didn’t really grasp it in its entirety until much later, but it was eventually learned and it was painful. Back in 2007, times were a little nuts. This was when real estate was flying and there...
Good News for the Economy
I can’t believe what I am reading lately. After 8 years of liberal policies, I guess I forgot what it’s like to see more conservative actions taken by the federal government. President Trump vowed to get rid of two regulations for every new regulation proposed. I...
Senior Assisted Living -Head of Business Development
We’re looking for a partner/business development consultant to help us build our senior assisted living business. This is not a very structured position and can partly be what you make it. We are really looking for a go-getter who wants to take charge and run this...
Don’t Open Unless You Want to Chuckle
I don’t normally send out YouTube videos to watch, but when I do, they are funny. This post is nothing but fun and will put a smile on your face. My friend Tom Baker sent me this video of a hilarious skit from Saturday Night Live about the use of Amazon’s “Alexa.”...
Where WIll They Live?
The housing market is going through some interesting times right now. Below is an article about how homebuilders are not building starter homes because there isn’t enough profit in doing so. They don’t make as much as they can when they are building more median-priced homes. This is leaving the younger generation with a lack of affordable starter homes to choose from.
Home Price Increases: Are They Sustainable?
One of the best indicators of the sustainability of home prices is the ratio between income and home prices. If home prices rise faster and higher than homebuyers’ incomes, potential homebuyers can’t afford as much, which puts pressure on sellers to lower their price...
Our Special Event Gets Us All High
Steve and I got high with 12 of our friends last week, then we all visited the most top-of-the-line hangar in town and drove to lunch at ArrowCreek because we were starving. Okay, that may be one of the best titles I have ever used for an article! I bet it got you to...
“Comeback Cities” – Is Yours One of Them?
Realtor.com published an article about the 10 biggest comeback cities in the U.S., and Reno comes in at #10. It appears they have done their research, except for one thing, and that is what they say about Reno. I guess it only sells or is interesting if they put...
I Thought I Had a Stroke
I recently had to visit the emergency room here in Reno. I was lightheaded, I had a foggy brain and I thought I might have had a stroke. I had met with some investors at 10:00 that morning, and, during the meeting, I couldn’t remember the name of our fund Guardian....
Dao vs. United Airlines vs. US Government
All right, I tried to stay out of this mess and not comment on the United Airlines debacle, but now I can’t help myself after reading this in the WSJ today: Lawmakers Put Heat on Airlines House members tell United and rivals to treat fliers better or face new...
Your Credit Score is Getting an Overhaul
This doesn’t happen often, but the three big credit bureaus have agreed to change the rules as to how your credit score is, well…scored. Like any other large established business, they are slow to change. But, they are finally making some improvements that will...
Compounding Money While You Sleep
Have you ever looked at a compounding chart? I was fortunate enough to be handed a compounding chart when I was 20 years old by a stock broker at Dean Witter. It really opened my eyes. Below is a compounding chart that I made for my youngest child when he was 9...
The Underworld of Seller Financing
Did you know that there is an underworld of seller financing alive and strong out there? Chances are, you probably haven’t given it much thought. We are familiar with this concept because it is one of the worlds we do business in. Now, you might be wondering why I...
If I Can Survive 25 Missions, I Get to Go Home
What do you get when you take six friends and go for a ride in a B-17 Bomber? A whole lot of fun and a mini history lesson! We had the fortunate opportunity to go fly in one of just two B-17 Bombers that have been restored and are allowed to fly around with people in...
Take Responsibility
Are we becoming a nation of people who never want to take responsibility for anything? The newest attempt at a law here in Nevada is to seal eviction records for 60 days. Here is the write up from the NVAR: AB107 would provide that eviction records, from the affidavit...
InvestX: Shortcuts to Savvy Investing
What do you get when you combine a wealth consultant, a tax structure guru, a family trust advisor, a legacy and family wealth planner, and a real estate investment strategist with a room full of investors? The answer is an unbeatable educational experience called InvestX.
Do You Own Any Rental Homes?
If you do, you might want to keep an eye on Portland, OR. Let’s say you need to (or just want to) raise your rent. Not so fast, you big, bad, filthy rich landlord. In Portland, they are going to charge you $2,900 to $4,500 for raising the rent on your rental...
Warren Buffett’s Million Dollar Bet
Just over 9 years ago, Mr. Warren Buffett made a $1M bet with the asset manager from Protégé Partners that his chosen index fund could outperform their chosen group of hedge funds over 10 years. Come December 31st of this year, it looks like Buffett will win his bet....
There is Change in the Air for 2017
This year, 2017, is going to be a different type of year for Hughes Private Capital and the funds we manage. 2016 was a busy, pivotal year and we are extremely excited about what we have built for 2017 and beyond. There are a few changes we want to update you on....
Can a Law Make a Dishonest Person Honest?
Every time we hand our Offering Memorandum to an investor, we say, “This tells you how you are going to lose all your money.” In 60 pages of boring, nauseating, repetitive statements, it basically explains how everything can go bad. Do you really think investors need...
Do You Trust the Mass Media?
For the most part, 68% of Americans don’t trust the mass media, as shown by a new Gallup poll. Does that really come as a surprise to any of you? If it does, you should try listening to multiple sources on the same stories and see how differently they are reported....
Protectionism and its Unintended Consequences
“It’s the economy, stupid.” Some of you may remember that phrase, coined by James Carville for Bill Clinton’s campaign. Well, in all my brilliance, I am coining a new one: “It’s the free market, stupid.” Tom Henderson has done it again with a great article...
The Secret to Protecting Your Portfolio from Market Volatility
By Guest Writer, Craig Martin Your real goal for your investment portfolio can be easily thwarted by public predictions of the future. Here is what leading predictions in November were telling us before voters elected Donald Trump as our president: “As the historic...
I was Nervous to Be at Sea
Two weeks ago, my wife, Tanja, and I set sail on a Carnival Cruise out of Galveston, Texas headed for three Caribbean islands. This was our second cruise ever, lasting 7 days -- twice as long as our first one. I am not normally a nervous traveler, and the ship...
Is It Our Right or a Privilege?
This article by Tom Henderson is so spot on, so I wanted to share it with you today. This is the part that scares me about the government: both sides seem to have forgotten about the importance of free markets. The government is not here to help, they are here to...
The Art of the Craft: Local Innovations in Wine, Whiskey & Brew
Two innovative local businesses are helping to position Reno as a worthy presence in the craft brewing and wine and whiskey aging industry, for two very different reasons. On January 18, we got the chance to sample the results.
A Fascinating Set of Maps
This blog is more for fun than anything. Here are 18 maps showing different ways the world breaks down. If you ever wondered in what countries people drive on the left side of the road, where to get Big Macs, who uses the metric system, or even how many countries...
Make Us Proud, Tesla
I would like to share an article with you that appeared in Bloomberg recently about flipping the switch on the world’s biggest factory to date, the Tesla gigafactory. The building’s location was so affectionately referred to as the “scrubland outside of Reno, NV.” ...
How Does Yale Invest its $25.6 BILLION Endowment?
Can you guess the answer? They invest in alternative, or non-traditional, investments! In fact, 87.5% of their investments are categorized as non-traditional according to Yale’s 2015 report. Wouldn’t you think just the opposite? I don’t know much about endowments,...
The Good Old Days
This is an advertisement from the The Owosso Argus-Press – Jan 26, 1970. Look at those prices! A pound of bacon for just $0.67.
Please Don’t Let the Facts get in the Way
Those of you from Reno probably share my pain watching our hometown superstar do such a stupid move.
How Idiotic Can You Get?
You decide the answer to that question after reading this article published in The New York Times (big surprise there) about considering climate change when buying a home.
Whoville to Rent to Ownville
How would you feel if you made plenty of money to afford a home, but you were not able to get approved for a loan because you were self-employed? Or what if you paid all your bills all your life, but a medical issue forced you into bankruptcy, and now you can’t get financing to buy a home?
Executive Assistant for Client Relations – Full-Time Salaried Position
We are seeking a person full-time to focus on assisting our CEO and coordinating events to attract new investors for our four investment funds. This job would consist of: Assisting our CEO who co-manages our four investment funds and is responsible for raising capital...
Wealth Inequality: Another Perspective
Again the collectivist economists and followers are touting the increase of income and wealth inequality gap of the top 1% as a reason to raise taxes or to promote some wealth redistribution program.
Can You Sell Part of a Loan?
For many of you, the real questions might be: “Why would you want to sell part of a loan?” or “Who wants to buy part of loan?”
The Time Value of Time?
I wanted to share this interesting article about “time discounting” written by Robert M. Sapolsky in the Wall Street Journal. I have discussed the “time value of money” before, but what about the “time value of time”?
Follow-Up to Losing $400K
A few weeks ago, I sent out an article sharing how Verne Harnish lost $400,000 on a wire scam. Literally-- POOF -- $400,000 of his hard earned money was gone. Here is a link to that previous article in case you missed it: Defrauded out of $400,000 I wanted to share...
Firsts vs. Seconds – Which is the Champ?
I love to tell the story about our first exposure to the idea of buying non-performing second mortgages.
Would You Like to See a Trick?
I would like to show you an amazing way to make a greater return by getting paid less. That’s right, less.
Which 10% Is Better?
Let’s see if we can figure out which investment is a better, from a lender’s standpoint.
Why Do Women Make Less Than Men?
It’s a fact many of us are familiar with: Women make 77 cents for every dollar a man makes. If you take all full-time workers and divide the median annual earnings of women by the median annual earnings of men, it does equal .77.
A Glimmer of Hope in a Sea of Regulations
The Consumer Financial Protection Bureau was recently ruled as having an illegal structure by the US Court of Appeals for the DC Circuit. The court wrote in its decision: “Indeed, other than the President, the Director of the CFPB is the single most powerful official...
Defrauded out of $400,000
I follow Verne Harnish’s weekly blog. Verne is the founder and CEO of Gazelles, Inc., a very successful consulting business that provides “executive education” for high-growth companies around the world. He is also one of the original founders of YEO (Young Entrepreneurs’ Organization).