Tue, 29 March 2016
Dr. David E. Goldberg is an Emeritus Professor of Engineering at the University of Illinois and a pioneer in genetic algorithm. He is the founder and president of Big Beacon and he also hosts the radio show, Big Beacon Radio. He believes that the future is more optimistic than many people think it will be and that engineering is the key to enhancing education reform.
[2:22] Evolutionary computation is the idea of combining Darwinian survival of the fittest and ideas from genetics.
[7:49] What impact does evolutionary engineering have on humans, the economy and the systems we use?
[11:53] The future can be more optimistic than what people assume it will turn out to be.
[14:06] Engineers used to be rock stars, just look at the ebb and flow of the popularity of historical engineers.
[16:14] After World War II, we turned engineers into ‘worker bees’ and now we want them to be charismatic leaders, like Steve Jobs.
[19:58] One of the interesting things we found when researching ‘A Whole New Engineer’ is that Asia may no longer be a breeding ground for engineers.
[24:12] Contact information for Dr. David Goldberg.
[25:10] Empower students with trust and they will find the courage to take the initiative which leads to real learning.
Mentioned in This Episode:
Thu, 24 March 2016
AIPIS 131 - Where Can I Buy an Inexpensive House in a Great Neighborhood? With Dr. Andrew Schiller, CEO of NeighborhoodScout
NeighborhoodScout is an online data tool you can use to make real estate evaluations a breeze. It conducts simple searches, which serve up quality information. The information is used by government agencies, real estate investors and individuals alike. Today’s guest Dr. Andrew Schiller, the creator of the site, has a Ph.D. in geography, focusing in sustainable development.
[1:54] Dr. Schiller has a Ph.D. in geography and uses data for projects on sustainable development.
[4:34] Predicting crime risk at the individual address level is possible with this software.
[5:55] The search engine component of NeighborhoodScout allows an investor to build their ideal neighborhood.
[7:35] The vacancy rate information that NeighborhoodScout delivers, is based on baseline nationwide statistics.
[13:55] Communities with good schools and low crime rates maintain their values during tough financial times.
[21:36] What is the tipping point for communities to ensure stable rentals?
[25:49] NeighborhoodScout’s information on crime is very telling. For example, Oakland, CA is both the most expensive and the most dangerous city in the U.S.
[31:00] Where can an investor buy a $100,000 house in a great neighborhood in the U.S.?
[36:17] How much is a subscription to NeighborhoodScout and how do I use it?
[37:13] The Federal Reserve and HUD use NeighborhoodScout for tax credit information.
Tue, 22 March 2016
AIPIS 130 - Leading Your Team Based on Balancing Your Leadership Capital with Victor Prince, Author of “Lead Inside the Box”
Managers of organizations typically inherit the team they are responsible for leading. Strategizing on how to effectively manage the new team can require an overwhelming amount of resources. Jason’s guest, Victor Prince, is the author of the book “Lead Inside the Box”; and he talks about a tool he created to categorize employees so that focus can be given to areas that will increase profitability without sacrificing efficiency. Victor also shares some techniques that can be used during the interview process to assist human resource departments with hiring the right individuals for the job.
[2:20] The Leadership Matrix!
[5:00] Categorizing different types of employees.
[6:16] More often than not, leaders inherit an existing team.
[7:28] How to keep employees continuing to produce for your organization.
[10:24] Managing your peers and succession planning.
[12:31] Know who you are talking to during the interview process.
[14:40] Insightful questions to ask during an interview.
[16:21] You want people to produce the results you ask of them.
[17:54] Filling the gap about the proper way to invest in people.
[18:54] Lack of leadership is the biggest issue in Washington, DC.
[20:15] Contact information for Victor.
Thu, 17 March 2016
Syndicated deals are complex negotiations between multiple partners or investors. This type of deal has a special title because it involves more than one buyer and sometimes more than one lender. Jason’s guest, Joe Fairless, chooses to invest along with other investors to show his conviction for the preferred deals. He says that the most important rule of investing at this level is to know and trust the other general partners involved in the transaction. Large deals of this nature may net ongoing cash flow or may include opt-out clauses for investors who wish to make their own terms.
[4:01] What “closing the deal” means to Joe Fairless
[6:44] Raising capital for syndication deals
[11:52] Formats, general fees and rules for raising money for specific deals
[17:46] Acquisition fees
[19:45] Asset management fees for the general partners
[20:51] Investing alongside other investors
[22:30] The importance of knowing who you are dealing with
[23:44] Ongoing cash flow
[25:18] Refinancing, long-term debt and tax implications
[27:42] A 5-7 year time horizon between deals, but an investor can opt out early
[30:10] Joe’s daily podcast is “The Best Real Estate Investing Advice Ever”
Tue, 15 March 2016
Jeff, an existing client, is doing research on buying multiple properties at once in the Chicago area. After much debate about the advantages and disadvantages, Jason gives a thumbs up in support of the venture. That is because buying multiple properties at once will save investors time and paperwork. Affordable maintenance costs, low vacancy rates and cost of living make Chicago the least expensive world class city in the U.S.
[1:45] Jeff asks Jason’s advice about investing in Chicago.
[2:16] Chicago is great but there are a few reasons why it’s not a slam dunk.
[3:45] But...the team you use is important! Pay attention to the in-house services.
[6:19] Cash flow and rent to value ratios in Chicago.
[8:48] Is a low vacancy rate a sign of low rents?
[10:47] The psychology behind raising rents for existing tenants.
[13:38] Our local market specialist in this area know what they are doing.
[14:23] Are there advantages to buying a group of properties all at once?
[17:00] Chicago is the most affordable world class city in the world.
[17:42] Rental Properties in Little Rock and Memphis versus rental properties in Chicago.
[19:45] A million shades of gray in real estate investing.
[21:37] An extreme self-management example.
[25:07] The Chicago area is a vibrant market.
Thu, 10 March 2016
AIPIS 127 – Asset Protection Laws LLCs, B Corp & Trusts with Garrett Sutton Adviser to ‘Rich Dad’ Author Robert Kiyosaki
As you are building your real estate portfolio you need to make certain you are managing and protecting your assets to the best of your ability. Garrett Sutton joins Jason today to discuss the relatively new Benefit Corporation, also known as the B-corp. He also shares changes in state taxes and how they affect Single Member LLCs and Multiple Member LLCs. They touch on the best states to incorporate in and the benefits of a trust vs. a living trust. Garrett offers a special bonus to listeners of the show.
[2:59] The Benefit Corporation
[8:06] An LLC carries a charging order protection for real estate asset protection
[11:54] The protection of Single Member LLCs in Wyoming and Nevada is degrading
[13:24] An irrevocable asset protection trust
[16:04] A trust protects assets and is managed by trustees, but a living trust does not
[19:47] Problems with the bureaucracy of California and changes in taxes
[26:50] Registered agents should file paperwork promptly
[28:17] Delaware has a strong body of case law due to being the home of most Fortune 500’s
[30:26] Contact information for Garrett - mention Jason’s name and get a $100 discount
[31:56] Garrett’s advice is to stay up-to-date and have a trusted advisor
Tue, 8 March 2016
AIPIS 126 – Harry Dent on How to Profit from The Demographic Cliff – Central Bankers Have Gone Mad and Are Creating a Huge Bubble that Will Burst
This is a must listen to episode for investors. Our guest, Harry Dent, has written over 7 books on using demographics to predict economic outcomes. Harry and Jason discuss the inevitable Chinese market crash, the deflation that is headed our way and the massive amounts of debt in the private and public sectors. For real estate buyers, it appears that the everyday house is the best place to invest for the next 3 to 4 years. We just might see the lowest interest rates on mortgage loans of this lifetime. Harry warns that the bigger the bubble the bigger the burst, and predicts we will see the Dow drop below 6000 in the coming years and fracking bonds will be crucified.
[2:24] A ‘something for nothing’ life is not realistic
[3:26] Deleveraging the debt leads to money disappearing
[4:36] Debt grew 2.7 times faster than GDP
[6:38] We are sitting on unfunded liabilities at 4 times the GDP
[10:06] Is the U.S. in a legitimate economic recovery?
[13:25] Harry’s opinions on high-end real estate
[15:26] Banks and governments made bad loans
[17:37] The greater fool theory – the Chinese are the last fools standing
[20:02] Speculation will cause the crash in China
[24:33] The U.S. fracking industry will default
[25:48] Deflation is the sign a bubble is bursting, 100 trillion dollars will disappear
[27:06] The Dow will drop to under 6,000 in the megaphone pattern
[30:15] Junk bonds will be crucified and growing default rates
[31:36] Mortgage rate will come down in 3 or 4 years
Thu, 3 March 2016
AIPIS 125 – Matt Williams – Taking the Mystery Out of Repairs, Improvements & Rehabs with Pro.com, Former CEO of Digg
The fact that U.S. homeownership rates are tumbling is great news for real estate investors! The time is ripe for cash flow oriented linear markets. And it turns out that Pro.com’s home project service engine is up and running at full capacity. I talk with Matt Williams, former CEO of Digg, about the latest and greatest tool for real estate agents and investors: Pro.com. Pro.com is a new service which gives you the cost of a pro contractor’s services to complete your home upfront, so you know exactly how much you can expect the bill to be. There were no fees exchanged for this or any of my podcasts.
[2:05] Learning the ins and outs of building marketplaces and communities at Amazon
[3:07] Digg’s V4 - An attempt at a personalized news experience
[9:39] Homeowners have access to what it costs to get their home ready for sale
[11:16] The most comprehensive pricing engine for any home project
[13:48] The problem is a lack of transparency for home services
[15:30] What costs should be broken down for the consumer
[16:47] It’s really for every single job you can imagine in the home
[19:07] Pro.com also handles the processing of payments
[20:12] Thousands of common projects and the multiple variations
[21:40] There are a lot of jobs left undone because people don’t know the price upfront
[22:16] We survey the pro after the job and post rankings
[23:06] How do real estate agents work with Pro.com?
[25:38] This free service is nationwide, right?
The Mystery of the Missing Inflation - Tyler Durden
Tue, 1 March 2016
Buying raw land from sellers who are in tax default can make a profit of up to 300%. Displaying due diligence when searching for properties by using the right web tools, understanding the area, and even financing the land yourself can open up new passive income opportunities. Mark Podolsky joins Jason today to discuss how he created a booming business in the small niche, raw land market. He shares tips and tricks you can use to start your own buy and sell business, how to find the right properties and entice potential sellers.
[2:32] Mark buys raw land at tax lien auctions and then resells the land online for a 300% profit
[5:41] The best properties are in the West and Florida
[7:01] Financing the resell for passive income
[11:12] Due diligence helps to avoid environmental issues
[14:19] How to find the right properties – start with the National Association of Counties
[21:30] A land contract, a promissory note and a purchase sale agreement
[24:09] The process of buying and selling the properties
[29:19] Moving the needle in other people’s lives via “The Land Geek”
[31:07] Raw land deal examples