Chip Conley as a Mentor?

Who is Chip Conley you may ask? He is the lead at AirBNB of Global Hospitality and Strategy.

What would happen if you could merge wisdom with fresh ideas? Today’s guest is Chip Conley, the founder of Joie de Vivre Hospitality. In 2010, after having created and managed 50 boutique hotels, he sold his company. Later, he was asked by the three co-founders of Airbnb if he could help evolve the company into a hospitality company with more than one million hosts in 191 countries. He accepted, becoming the Head of Global Hospitality & Strategy for Airbnb, working closely with CEO Brian Chesky as a mentor.

Kathy Fettke was honored to be the keynote speaker at five different conferences this month, all over the country — from San Francisco and Los Angeles to Denver and Philadelphia, and she just got back from New York. And, what I noticed at all of these events and previous ones during the past few years, is that I’ve seen a lot more Millennials attending real estate events. It’s been incredible to see how quickly some of these young people can build a business. For some, it seems like their energy and tech savvy creates companies overnight. And while these brilliant people know technology better than perhaps other generations, what they don’t have necessarily is life experience. What would happen if you could merge wisdom with fresh ideas? On today’s episode of Real Wealth the guest is Chip Conley, the founder of Joie de Vivre Hospitality which he began in 1987 at age 26. In 2010, after having created and managed 50 boutique hotels that are mostly in California, he sold his company. A few years later, he was asked by the three co-founders of Airbnb if he could help evolve the company into a hospitality company with more than one million hosts in 191 countries. He accepted the challenge and became the Head of Global Hospitality and Strategy for Airbnb, working closely with CEO Brian Chesky as a mentor.

http://www.realwealthshow.com

For more check out episode 725 on the website.

Volatility & Fees Kill Returns

Episode #262 of Get Rich Education with Keith Weinhold explores what Alabama might be the top real estate investment state in the USA and how fees can kill your returns. Summary by Casey Ryan Richards.

GetRich Education is Keith’s Website

The episode starts off with Mutual Funds. Are they really a smart idea? If you start off with the same $100,000 investment and withdraw the same amount each year, a mutual fund with a 1% fee will run out of money 10 years earlier.

Inflation, emotion, taxes, fees, and volatility all play a role in stock market returns. Compound interest in diluted by these factors. Research has shown that you are realizing about 38% of the returns that you think you are getting when you factor in these elements. Losing 50% of the value of something means that you have to earn back 100% in order to recover.

This is why real estate is more stable than stocks. Passive income from real estate doesn’t get diverted to pay fund managers. These managers make fees off of you even if you lose money.

So how do you pick rental properties?

1. The neighborhood you are in dictates what type of tenant you will attract.
2. Property taxes are critical. It isn’t how much you make, but how much you keep.
3. Schools are a big deal. Affordability and closeness to work are higher though.
4. Crime. People don’t like it. Make sure that it is going down, not up!
5. Job markets. Make sure that employers are hiring and moving in rather than moving out.
6. Amenities in the area matter.
7. Future development potential?
8. Listing and vacancies in the area means competition.
9. Can the rent cover the expenses?
10. Insurance. Are their natural disasters in this area?

So how does Alabama fit into all of this? It has the best of all of these factors to produce a high yield.

This summary was produced by Casey Ryan Richards.

Note Investing

January 31st, 2019

Think Realty Radio Podcast Review

On today`s episode of Think Realty Radio host Abhi Golhar interviews Bill Mincarow of PaperSourceOnline.com and the basics of note investing. This is a summary of that interview.

Bill Mincarow bought his first note in 1980. He also invests in single family rentals and farmland. He started Paper Source Online as a way to teach people how to invest in notes. He doesn`t sell notes or have any sales pitches.

* The Basics of Note Investing – What is a note?

A note is an IOU in its most basic form. With real estate this refers to the mortgage that is paid on a property. As a note investor you take over the role of the bank. In exchange for loaning money (or more often taking a delay in payment on a property you are selling) you collect payments and interest just like the bank.

* Benefits of Note Investing

The biggest benefit of note investing is that there are no tenants. When you own the note you don`t own the property which means that you don`t have to deal with tenants calling you in the middle of the night for maintenance issues. You have no responsibility for the property or repairs.

Also, notes give you higher yields than single family rentals. This is because notes don`t appreciate like houses do. Therefore, investors require more yield on their investments. In many cases the returns will be in the double digits.

Unlike ownership, there is no liability with note investing. If someone slips and falls on the property they sue the owner, not the bank. As the bank you have nothing to worry about.

Finally notes are easy to sell. Much easier then selling a house. You can even sell parts of a note.

* How is Note Investing Different from Stocks?

Notes are similar to stocks in how the interest rates effect value. If you have an 8% note, and rates go up to 12%, the value of your note goes down. Likewise, if rates go down the value of your note goes up.

When investors purchase stock they are third in line for repayment if something goes wrong. First comes the bond holders, followed by preferred investors, and finally the stock holders. This isn`t the case with notes. All notes are secured by property and note holders are the first to be paid off. Property owners even take out insurance that pays you back in case of loss!

* Buying Real Estate from a Distance

Buying single family rentals from a distance can be troublesome. Driving to meet people doesn`t work when you live far away. With notes you can be far away because you don`t own the property. Instead, you simply have an appraiser look at the property. Next you verify the Property, Paperwork, and Payer. After this you just collect checks in the mail. If you call a note a stock, suddenly you stop caring where it is located.

* Note Investor Yield vs. Debtors Interest

A common misconception about notes is that because you are earning a high percentage, that must mean that the buyer is paying a huge percentage. This isn`t the case. “The less you pay for a note, the higher your yield” says Bill. “When a note is created, it is created at a certain interest rate”. When the note is sold nothing changes with the rate the borrower pays. The discount that the investor receives on the note will determine the yield, but the interest rate to the borrower never changes. For example, the interest rate can be 1% and the yield 15% if the note is purchased at enough of a discount.

* Regulations

“Note investing is virtually unregulated” says Bill. It is not regulated by the Federal Government or 95% of the states. One notable exception is California, but it is important to remember that note investing is not lending. No money changes hands during seller financing deals. Instead you are simply delaying payment for the property you are selling.

Bill suggests taking his free e-course online at PaperSourceOnline.com

This summary was provided by Casey Ryan Richards. My website is http://www.CaseyRyanRichards.name/
I am a real estate investor and trader. I currently live in Rutland, Vermont with my husband Max. We maintain this blog as a collection of our notes from various Real Estate related podcasts. We have not visited any of the websites mentioned

Quantitative Finance

November 7th, 2018

Think Realty Radio Podcast Review
Summary by Casey Ryan Richards (http://www.CaseyRyanRichards.name)

On today`s episode of Think Realty Radio, the host Abhi Golhar interview George Coop of Clearmark about the topic of quantitative finance. George says that investing in the market or real estate is just an asset class. When you invest, you are working as an investment manger allocating funds to various asset classes. You need to understand those classes including who the buyers and sellers are and what are their motivations. This is what he does for a living.

On big mistake that he finds people make is when they react emotionally and don`t do adequate research. When you get a hunch on a good trade, it might be right, but without objective research you can`t really me sure. Avoiding emotion actions in investing is critical because manias aren`t going away. George calls it the FOMO effect (Fear of Missing Out). It causes people to get involved in things they should avoid. Instead, the key is to do your research, verify your data, execute, and then stand by your choice. You can review your research for mistakes, but don`t let emotion be a part of your choices.

As you practice his form of logical thinking it will start to become second nature. Acquiring this skill will lead you to profits. You don`t need to be an expert, you just need to try to learn and understand your field

Rich Dad on Real Estate Guys Radio

September 16th, 2018

RealEstateGuysRadio.com Podcast

On today`s show the guys interviews Robert Kiyosaki (RichDad.com) about what he does that has made him so successful in investing. Rich Dad says that he loves real estate investing more than anything else because of the unlimited cashflow, never ending returns, and lax of taxes. He just doesn`t get excited by investing in some big company run by a CEO and hoping that everything works out.

Robert believes that you don`t work for money. Instead, you need to work on learning something that you love. Once you know that topic you study it. Surround yourself with real teachers of that topic. Real teachers are people that are out and doing it every day, not just talking about it.

As you do this you will learn that it doesn`t matter what is happening around you. As long as you are aware of what is going on you will find the way to use that information to benefit you. Education means listening to all sides, but intelligence is learning how to stand on the edge.

Robert`s main point is that invest in something that is real. Real estate is real; Gold and Silver are real; even Avocados are real! It doesn`t matter as long as you have a passion for it and take the time to educate yourself.

Summary by Casey Ryan Richards
http://www.CaseyRyanRichards.name