The Real Estate Blog with a Twist

I don’t know about you, but I like to do things the right way instead of taking shortcuts, and I also come from a time when a “hack” was definitely not a good thing.  This principle is far from a hack.  It’s a foundational “mental model” that can help frame the way you think.  So, here’s how you can “cheat” the system we’ve all been taught and start doing more with less.

We make millions of decisions over our lifetime, and just like investing a dollar today, even small decisions can compound into hugely positive or negative results. I ran across some interesting ideas on the decision-making process and wanted to share. After reading this, you may never make a decision the same way again!

I was recently interviewed by wealth advisor, author, and real estate investor, Salena Kulkarni.  Salena is an international celebrity from Australia, so it was fun to know that our conversation would be heard by audiences thousands of miles across the Pacific. Salena asked some really good, insightful questions about our chosen market and the way the fund operates. 

Any time the government intervenes with the free market, things get off-kilter.  Rent control is no exception. Under rent control, the government tells a product provider how much to charge for their product, while at the same time restricting its production. How does that solve any problems? Basic economics shows that it does not. Instead, it messes up the delicate chain of supply and demand, resulting in more than a few ramifications.

I’ve said it before: “Investing – particularly successful investing – is hard.” There’s a lot going on in a person’s brain that can sometimes make investment decisions more complex than they need to be. Charlie Munger — attorney, investor, multi-billionaire, and Warren Buffett’s business partner — came up with this brilliant checklist we can use when faced with tough decisions.

Here’s the cliffhanger ending to last week’s article! This week, we look at how Trader Joe’s most surprising and unique secret to success could actually be making us HAPPIER.

If you’re a Trader Joe’s shopper, it’s probably because you love all the cool, unique stuff you can’t find anywhere else, usually at a fair price. But there’s much more going on than meets the eye. We’ll take a closer look at the underpinnings of Trader Joe’s mass appeal, as told by a former advertising exec who went undercover as a crew mate.

It’s no accident that six of our buy and hold fund’s portfolio cities made it to Inc. magazine’s “Top 50 Surge Cities” list. A few might come as a surprise — like the city that was ranked as the biggest new agtech start-up. (Hint: it’s nowhere near Silicon Valley.) Read why this is good for our investors, and how you can get a piece of the pie.

Do you know where your tax money goes? This article provides a clear breakdown of government spending and the effects it could have a few years down the road. Fair warning: it’s not all roses, especially if programs like defense, infrastructure, and education are important to you.

Here’s an interesting take on the “Roth vs. Traditional IRA” debate. Harvard Business School agrees with me that a Roth comes out the winner—our reasons are just a little different.

If you think your assets can only be taken from you through due process of being convicted of a crime, think again. This article from The New Yorker is a gripping account of civil asset forfeitures being abused in a big way. Although it was written in 2013, the article is just as relevant and powerful today.

“Freedom” can be a tricky word. It’s hard to pin down the true definition, and it means something different to each of us. Still, this article does a great job of showing which states have the most and least personal and economic freedoms, with one overall winner you’ll read about at the end of the article.

Nevada state workers earn 149% the salaries of their private sector counterparts. Now, the governor is promising state workers the ability to collectively bargain already inflated pay packages… compliments of Nevada taxpayers.

It’s pretty tough to find the right answer when you’re asking the wrong question.  The other day, I received an email from an investment fund asking if I was prepared for the next recession.  Shouldn’t the question really be, “Are your investments prepared, and how...

The city of San Francisco launched a $3.1 million task force to rid the city of a foul issue that keeps piling up and needs to be flushed out. They’ve hired a “poop patrol” to clean up the streets, and the workers are making bank.

Over the last couple years, I have watched more than a few friends go through the heart-wrenching difficulty of managing their deceased parents’ estates through probate. This article paints a simple and profound picture of what probate is and why you wouldn’t want your loved ones to go through it.

You’ll be the envy of your friends the next time you get together to play some trivia game about yard sizes because you’ll know all the answers. You’re welcome.

Factfulness: Ten Reasons We’re Wrong About the World and Why Things Are Better Than You Think by Hans Rosling

What will your legacy be? I don’t know about you, but until recently, I hadn’t thought much about the impact I could actually have on future generations past my kids and grandkids. It’s one thing to set up a trust (the importance of which I can’t emphasize enough, even if you mistakenly think it’s only for the wealthy!), but it’s another thing entirely to have it set up so that it continues to generate opportunities rather than simply distribute wealth.

I want to tell you the story of an impressive entrepreneur who owns a heck of a little restaurant named Zagol, located in the business center on Mira Loma and South McCarran in Reno. Zagol is an Ethiopian restaurant that offers incredibly mouthwatering food. I kid you not — every time I’ve eaten there, it has turned out to be an unforgettable taste experience with the first bite always being a big explosion of flavor.

Here is a cool financial trick:
If you took out a loan with a 5.0% simple interest rate (the interest does not compound) and you were able to write off the interest as a tax deduction, you could offset the cost of your interest payments by putting the borrowed money (or an equivalent amount) in an investment with only a 2.5% compounded after-tax net return.

A recent Bloomberg article highlighted a positive trend: credit scores have hit a record high. Notice the correlation between the age group of the credit holders and their score.

As I continue to get smarter in my investing career, there is one thing that keeps jumping out at me. I see it everywhere: the conferences I attend, the podcasts I listen to, the people I meet with, the books I read, and so on. What is this one thing?

I have to hand it to this guy, Kenneth A. Capron, for thinking outside of the (housing) box. Kenneth runs a nonprofit and is trying to get a grant to park an obsolete cruise ship in the port of Portland, Maine to provide affordable housing to people who need it.

This article was written on December 20th, eleven days before the end of the year, so there were some final changes with the stock market (to say the least).

It’s common around the holidays to be giving toward those in need, but a charitable act that can promise longevity is much more impactful than a one-time donation. This year, consider loaning just $25 to a small business owner or ambitious young adult through a service called Kiva.

I just read the Q32018 Northern Nevada Commercial Investment Real Estate Report by Rowley Real Estate Advisors highlighting some exciting developments here in Northern Nevada.

As we’re wrapping up 2018, we thought it would be a good time to stop and reflect on our busy and productive year. I sat down with Hughes Private Capital co-founder Steve Sixberry to chat about what we learned and experienced, and what we’re looking forward to in 2019. Enjoy!
— Greg

The great city of Denver wants to solve its high cost rental problem and help working class homeowners at the same time. This is one ambitious plan, but who knows? It may just work.

This week my daughter, Kayla, is our guest columnist. My whole family had the privilege to go on the Honor Flight on Veteran’s Day weekend. This was my second trip. It was just as amazing as the first one and I see many more in my future. This is Kayla’s perspective on the experience.

Happy Thanksgiving from the Hughes Private Capital team!

I was recently a guest on the Dentist Freedom Blueprint podcast with Dr. David Phelps. After a successful career as a dentist, David earned the reputation of being an expert in real estate investing, which is why he invited me on his show.

I’ll admit, this isn’t our most exciting Saturday email, but it is important. Great Basin Federal Credit Union sent me this resource about scams and fraud, and I thought it was worth passing on to all of you. When it comes to security, it seems the crooks come at us from all directions.

With the holidays approaching, I thought it’d be fun to ask my team for one book they would recommend to others. Not only are these good reads for you to check out, but they make great holiday gifts for your friends and family. Happy reading!
– Greg

In a Hughesletter from earlier this year, Hughes Private Capital co-founder Steve Sixberry shared the story of his unconventional career trajectory. This month, he writes about the intense process of selling his cellular network company to Sprint/Nextel in 2006. Hope you enjoy!

I’ve never seen anything that has a greater return on investment than this financial literacy class, provided to Washoe County high schools through generous local donors, organized by The Hayek Group.

Have you ever watched the television show called American Greed? I like to record it and watch it when I have time. If you’re not familiar with it, the show highlights people or companies who are unethical and take other peoples’ money.

As a never-ending source of informative, entertaining, opinionated, and thought-provoking content, I’m sharing something completely different with you. (Are you rolling your eyes yet? Trust me on this one!)

Is the rental market cooling down or heating up? It depends on how you interpret the Bloomberg Weekly article below. According to the figures in the article, there is no doubt that rental prices are losing their steam in rent increases overall, compared to recent years.

A recent article by HouseCanary reported on the top 50 metropolitan statistical areas (MSA) for price growth in Q1 of this year. Seven cities where Guardian Fund purchases homes (in the Heartland of America) made the list. That is good news, but not what we are really interested in since our properties don’t go up or down much in value.

If you were to sell your investment property tomorrow, do you know how much you would owe in taxes? The answer might surprise you. We built a 1031 Exchange Tax Savings Calculator that helps you answer this question. After feedback from some trusted investors, we’ve simplified and improved the calculator, so it’s something you can easily do on your own – no CPA required.

The ‘Brady Bunch’ home is one of the most iconic homes in television history – who could forget that stone façade and the warm light glowing from inside?

In keeping with the “learning” theme of our September issue, I asked the Hughes Private Capital team to share some of the things they’ve learned about investing since they began working here. Our team lives and breathes investing, but we are always learning more! Here’s what some of them had to say.

We met with a potential investor the other day and he said, “My grandmother told me it’s not what you make, but it’s what you save.” Does advice get any better and simpler than that?

Did you know that in San Francisco, if you make $117,000 a year as a family of four, you are considered low income? It might be time to get out of Dodge when the Department of Housing and Urban Development makes that claim for your city. Imagine making $117,000 and qualifying for affordable housing developments!

Tariffs might not be the most interesting topic, but it’s certainly timely (you might remember that I recently wrote about the trade war). No matter how much I know or continue to read about tariffs, it’s a complex topic and I’m always learning more.

Recently, a friend sent me an article about “why investors fail.”  The article was specific to real estate, so of course I wanted to make sure I didn’t have any of the negative tendencies it mentioned.  But, darn it, I didn’t want to admit it — but I do!...

This is a guest article from Hughes Private Capital Fund Manager and COO, Steve Sixberry. You may have met Steve at one of our events or seen his face on some of our marketing materials. We thought it was time for Steve to share some of his interesting...

A friend of mine named Gene used to fly Cobras — attack helicopters used by the United States Marine Corps.  While he was flying Hueys (another prestigious helicopter used by the US Army) during the Vietnam War, he was shot through the calf and the knee...

What if companies and investors were incentivized to invest in the American cities that need it most, but are often overlooked because of poverty and unemployment? A group of billionaires and politicians may have a creative solution to make this a reality.

Go ahead and finish the title of this article with the theme song to The Jefferson’s. I know it’s already in your head.
“Well we’re movin’ on up, to the east side. To a deluxe apartment in the sky…”

1984 was a notable year for two reasons: It was the year I graduated from high school and the year Congress failed to drain the swamp. That’s right—Trump wasn’t the first politician to have the idea, but I’m hoping that with a little bit of persistence, and some good guys on our side, the idea can finally be successfully executed.

Cindy Armentrout, Esq. has been practicing law for nearly ten years and specializes in tax planning, asset protection, and wills. Cindy kindly provided this primer on how the step-up in basis works for surviving spouses, including ways that they can receive the full stepped-up amount even if they live in a non-community property state.

Before you sell your investment property, STOP and read this article! It could not only save you hundreds of thousands of dollars and even millions in unnecessary tax payments, but it could also result in generations-worth of tax-free investing for you and your family.

Greece may seem like a dream place to live, but I’d tell you to thank your lucky stars that you’re an American citizen.  The people of Greece face shockingly low wages, high unemployment rates, and get around by scooter.  Scarily, they only have two main industries keeping their economy from totally collapsing.  The challenge they are facing as a country is mostly of their own making and stems out of their big fat lie. 

Do you know the history behind baby carrots? This is one of my favorite stories about industry disruptors and changers. Baby carrots haven’t been around all that long. In fact, baby carrots have only existed since 1989. How is that possible? You would think they would have been around ever since the first carrot was grown.

I don’t think a trade deficit is bad. In fact, it really is the other way around. The greater the deficit, the more prosperous we are as a nation and as the world’s super economic power. In my opinion, President Trump is making a mistake by turning trade into a political issue.

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.

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.

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.

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.

In 2010, $615,000 in federal funds were spent to digitize photographs, T-shirts, and concert tickets belonging to the Grateful Dead. Hippies, rejoice!

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.

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?

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.

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.

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?

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. 

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.

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. 

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...