The Real Estate Blog with a Twist
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.
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...
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...
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 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....
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...
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...
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...
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...
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...
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...
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.
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...
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....
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....
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...
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....
“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...
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...
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...
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...
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.
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...
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.” ...
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,...
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.
Those of you from Reno probably share my pain watching our hometown superstar do such a stupid move.
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.
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?
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...
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.
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?”
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”?
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...
I love to tell the story about our first exposure to the idea of buying non-performing second mortgages.
I would like to show you an amazing way to make a greater return by getting paid less. That’s right, less.
Let’s see if we can figure out which investment is a better, from a lender’s standpoint.
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.
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...
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).
I have always heard and re-told the story of how McDonald’s isn’t in the business of selling hamburgers, but is really in the business of owning real estate.
We compared financing packages the other day for a senior assisted living property we are considering buying. Here are our options: How do we choose? They both have fixed interest rates for 15 years, and both are due in 15 years. The interest rates are slightly...
I traveled to Cuba in the late part of May, which I will give a report on in a future email as it was a fascinating experience to be in a Communist country.
If they have done it before, there is a good chance they will do again. Did you really need anyone to tell you that truth? Probably not.
This is a warning from Scots Historian Professor Alexander Tyler circa 1787. A democracy cannot exist as a permanent form of government.
It is nice when you can wake up with a smile on your face and you just can’t wait to get to work.
We recently opened a new fund to purchase re-performing notes. As we worked through the downside of the fund, because that is the most important part, the same question kept coming up between Steve and I. “Why does this seem too good to be true?”
This is such a well written article by Rodney Johnson that I wanted to include it in this week’s email in its entirety.
A huge breath of fresh air is the best way to describe the Tahoe Reno Industrial Center, and not because there is less smog out there, or because the sagebrush wafts a crisp clean scent over the 100,000 acre valley.
A common way that investors attempt to protect their capital from the whims of equity markets is to allocate some of their money to alternative investments.
In a recent national Bankrate survey, real estate was voted #1 over CD’s, gold, the stock market, bonds and others for most desirable place to invest money long-term.
This is a text from our youngest son Dexter at 10:32 pm his time in London, England to my wife, Tanja: “Just arrived but haven’t heard from the person that I am supposed to stay with tonight yet. Trying to find another place but only have Wi-Fi for an hour here at the airport.”
This article from The Daily Signal is a little frightening. It makes me think about our tax code, like we have talked about in previous newsletters. It seems that administration officials are trying to justify their jobs by putting more regulations and laws on the books.
I want to share with you an article written by Craig Martin, an RIA out of Silicon Valley, and myself in regards to Brexit and, more importantly, about how people do react to these types of situations and how we should react.
Online loan sharks in China are requiring college students to provide nude selfies to them to use as collateral.
The European Union has proposed to tax robot labor. This may be one of my all-time favorite “Are you serious?” ideas from any government body.
If you had to guess, which contractor do you think makes the most profit on a new home? Or do you think it’s the developer that makes the most?
Whistleblower, Edward O’Donnell, keeps his $57 million reward, even though the penalty he instigated against Bank of America was overturned.
On my birthday in 2002, I received a stomach-sickening phone call. I was told by a person I didn’t know on the other end, that they have lied to me but everything should be okay.
Why is it that almost every time a law is enacted that is intended to help a certain party, it ends up hurting them? You would think we should know better by now.
In an editorial titled “They’re Coming for Your Bonus” by Peter J. Wallison in the Wall Street Journal, he talks about another Dodd-Frank financial law putting restrictions on incentive pay for financial institutions.
This is what we have many long discussions about and are always ultra-aware of within ROI Strategies, our company that manages our Rent to Owns and our flipping operation in Reno, Nevada.
What is the end result of a rate of return of 7% versus 12% over a 50 year period compounded monthly?
I believe that before you invest your hard earned money, there are three important items to confirm or deny. These items are basic, but powerful, and you already know them. But do you always do your due diligence and follow them through to completion?
The CFPB has been an unregulated, unelected, far-reaching bureau with way too power over our free market system. This is scary. Where does it stop?
I just met a quiet, wicked-smart lady at the notes conference I was at last week. She is American, but grew up in Vietnam before being sent by the Communists to study in Russia.
That’s crazy. According to National Association of Realtors (NAR), 100 million American’s have a criminal record. Seems hard to believe and why does the NAR care?
In the article below from Yahoo Finance, Fantex a public company, now purchases a certain portion of professional athletes’ future earnings for an upfront fee. Interesting, but sure seems speculative.
American Universities Took in a Record $40.31 billion Last Year… The richest universities, such as Stanford and Harvard, dominated the list of recipients.
We talk about compounding often in our newsletter because it is so powerful. I was reminded the other day by a friend of mine about the difference between saving and investing your money early in life as compared to later.
I was reading some posts on Facebook and listening to the talking heads after Obama’s town hall meeting the other night on gun control. Then I received an email from one of our blog readers that got me thinking about what is real and what is a lie or skewed for political purposes.
Interesting demographics for the world. This was in the Economy and Markets newsletter by Dent Research. The concern is we don’t have enough babies being born to help sustain the overall economy especially as the larger generation’s age.
Do you know how much is out there in delinquent debt on single family homes? It is probably more than you think, but numbers have become so large they are hard to even estimate.
Recently, I have been meeting with a very smart businessman and his CFO. The businessman is known for inventing the software and systems that are now standard in his industry, providing him a deep amount of wealth over the last 30 years.
When I was 17 and owned my business Reno Lawn and Landscape, I had just finished thatching a lawn. I was filthy from head to toe because the lawn was dry and full of dust. It was one of the first times I had used my new thatcher and the job had taken a few hours longer than I anticipated.
92% of homes now have equity. Or is it that 8% have negative equity? What does that translate into? 4.1 million homes are still underwater. They owe more on their mortgage than their home is worth. Of course, the good news is that it has been dropping and continues to get better for the housing industry.
I am no expert on the stock market. In fact, I don’t have a dollar in it as of today. I lost faith in it over 5 years ago -- but that is not why I am sending this out. I am sharing it as a purely informational piece, so you can do with it whatever you like. I get...
Americans are optimistic for the future. Isn’t that the American way (or at least for those young whipper-snappers out there)? Nearly all renters 34 years of age or younger questioned in a new survey from the National Association of Realtors® say they want to own a home in the future.
After a flight from Dallas, TX to my home town Reno, NV, I stood up in the plane to leave when a lady sitting behind me said, “I know you.” I looked at her for a moment trying to place her in my mind and responded, “Aren’t you Saprina?”
This was sent to me from one our long time blog readers and I thought it was worth sharing. Normally, I can’t stand to summarize complex problems in a sound bite which is so famously done throughout the media daily on all sides. However sometimes small sentences tell big stories as you’ll see below. At the very least, these points should make us all go…hmmm. – Greg
I was reading the Wall St. Journal yesterday and I came across an ad for Ally Bank. Is this crazy or what? They are bragging about 1.00% interest on your money because that is how low rates are nowadays. I know this doesn’t come as a surprise to any of you, but I feel we have all become immune.
Last week you listened to me get worked up about today’s lack of personal responsibility and the government’s tendency to feel like they have to provide housing for people. This week I’ll lighten the mood with a story about how some true Americans are still displaying personal responsibility despite all the handouts and various government programs offered to them!
What happened to working hard, going to school, learning a trade, reading a book, getting some training, etc. so you can move ahead in your life? What happened to personal responsibility?
Bureaucracy at its best. Twelve year old Emma Farrell and fourteen year old Alex Farrell were shut down as they tried to sell lemonade in front of their home in the summer of 2013. These darn kids were only trying to earn a dollar but they didn’t consider all of the silly, nonsensical laws they needed to follow developed by those “in-the-know.”
In an economic real estate downturn of any size or proportion, how does a single family residence fund model compare to a debt fund model? The results just might surprise you.
“In the months I was writing this, the media, driven by Occupy Wall Street, became obsessed with the discussion of the 1% vs. the 99%, but neither the Occupy spokespersons nor the media dealt with the perspective of behavioral causes. Actually, there is an ‘Income and...
What follows below is a forward-looking letter written by Jason Zweig to his grandkids about the value of owning a home. It is not about the financial investment, but what it becomes over time. It’s about having a special place for your family to capture memories and experiences over the years.
As you are probably already aware, we presented at the SBRE Summit a month ago in Dallas Texas. They produced a high quality video of our presentations, so instead of me telling you about it in this email you can watch it here.
Last month we attended the SBRE Summit in Dallas to present our real estate investment fund and we were followed by the former president, George W. Bush (43). Okay, maybe it didn’t happen exactly that way but it is fun to say.
In an economic real estate downturn of any size or proportion, how does a single family residence fund model compare to a debt fund model? The results just might surprise you.
I always take these types of lists for what they are worth. It is rarely easy to know if one city is better than another, with so many contributing factors. But, sometimes lists like these can provide some good guidelines as to where look. Our main buying metro, Las...
For the first time in three years, real estate is the most popular investment option in a survey that accompanied Bankrate’s Financial Security Index.
What is the truth behind the lady that spilled hot coffee in her lap after going through a McDonald’s drive-thru? I can almost guarantee you have the story wrong.
We double our returns by using conservative leverage.
A lot of investors know how leverage works, but even some sophisticated investors don’t always get it completely. If you haven’t used it much, or had investments that use it, then the concept of leverage can be a little fuzzy.
Last week we talked about how 4,400,000 households in the United States today still owe more than their house is worth by 20% or more (negative equity). What’s interesting is that most of these households that are “underwater” are able to avoid foreclosure.
Get this… A study put out by Dalbar shows how investors fared in the stock market between 1992 and 2011. The S&P 500 gained 7.8% p er year. But the average investor earned just 2.1% over the same time frame.
Time for a treasure hunt again with the Nevada State Treasurer’s office. When we did it a few years ago, I found $700 under my name for some stock I had purchased and sold long ago.
Here are some interesting numbers for our market. According to Corelogic, as of September 15, 2015 there are still 4,400,000 households that have negative equity of 20% or more.
On the 228th birthday of the U.S. Constitution on September 17, the House Financial Services Committee posed the question as to whether or not the Dodd-Frank Wall Street Reform Act of 2010 has provided the country with more or less freedom.
A recent TD Bank survey of 1,002 adults found that just under half of millennials will be looking to purchase their first home over the next two years. Millennials, those aged between 25 and 34, already make up the largest share of home buyers at 32 percent, according to the National Association of REALTORS®.