What the heck does attacking the perfect storms even mean?! First, assume it’s all positive.

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Transcript:   Recently I spoke at a special event where I was asked the question: I speak a lot of this so-called positive perfect storm. Doesn’t this mean we should all go out and buy, buy, buy real estate like crazies until this perfect storm goes away? Well yes and no, but let’s define what the perfect storm in the first part. You go all these storms, and by the way, they’re all positive from the view point of the real estate investor. One storm is low interest rates. Another storm is very attractive rent price ratios. Another storm is the ability to buy new or newer rental income properties residentially in great locations without paying the premium we used to pay before the bubble burst. Then there’s that last part of that perfect storm that says not only are they very well located, but like I said earlier, they’re new or near new, where people around the country in most markets, including my own in San Diego, where we consider a 30 year old building just comfortably broken in. We haven’t had new construction of, say, two to four unit buildings, which is what most investors buy, Reagan was in office the last time they built significant number of those buildings in my county. Now you’ve got low interest rate, rent price ratios that are very nice, well located buildings that are not old. Should you buy as much as you can then? Out of ten people, I might give three different pieces of advice because, like I said earlier in many of these videos is that different set of circumstances for Fred makes him do something totally different than Mary should be doing. Let’s say you have a bunch of capital and let’s take something a little bit out of the ordinary. You’re 52 years old. You know you’re going to retire at 67. You’ve got 15 years. That doesn’t seem like very long but you’re a high income earner. You’re averaging $250, 300,000 a year and you know that for the next 15 years it’s going to be that or a little bit more. Here’s what you do. If you can buy all that real estate you have to weight it against I can have a Roth IRA or I can move things into a Roth IRA. Do I start buying discounted notes from inside that Roth IRA. Do I buy notes in my own name? What do I do? Here’s what I tell people. How much a month in cash flow from all the properties you own, and family budget money that you can comfortably set aside to service your retirement plan every month … You can just spend like you don’t care. Then the other thing is, Do you have other sources of income in which you’ve invested? Of course the main source would be note income outside of a qualified retirement plan. In other words, you bought it in your own name. The plan would be, how much real estate can I buy, put 25, 30% down, and retire the debt on all of them by the day before retirement hits 15 years from now? Can you do that in 15 years? I have clients who, because of their note portfolio, they own a small business that is a big producer, and they have cash flow from many properties, but if they buy more property and acquire more debt they have their real estate portfolio’s cash flow, which is impressive and significant, they have the note payments coming in where they have to pay taxes on them, they own them in their real name, but they take that and add it to the cash flow. Then they have their family budget that says they can take x dollars a month, add it all to that, and then they start attacking those loans. They can buy one, two, three. I’ve had people buy six, eight, 10 properties in a six month period and they’re able to retire all five, three, eight,