The Golden Rule In Real Estate

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Is it worth it to invest in gold Bringing in years of experience working for the oldest continuously family-owned and operated precious metals dealer in the US Robert Goodin answers why we should add gold silver and platinum to our portfolio Robert also gives his perspective as a real estate investor and talks about networking with leaders in the business finding value in the market and helping others get the financing they need 00 01 – 04 12 Networking is Key Robert shares his background Selling precious metals and side hustling in real estate on the side Building relationships with successful people 04 13 – 10 25 Investing in Precious Metals Comparing the US dollar to gold Why gold is similar to real estate The potential of silver and platinum 10 26 – 22 16 Starting Small in Real Estate and Scaling Up Scouring the market to find value Turning around raw underappreciated land How marketing and subdividing are keys to profitability What Robert and his team do to help people who are struggling to finance a property Working with notes and the importance of pre-payment penalty Finding the right people Robert s thoughts on debt 22 17 – 24 31 Closing Segment The best piece of advice Robert has received Reach out to Robert Links Below Final Words Tweetable Quotes Gold still makes sense Countries buy gold Central banks are buying gold – Robert Goodin You ve got to know your market to be able to identify value – Robert Goodin It s about the right people You can kind of tell when somebody has your interest in mind – Robert Goodin —————————————————————————– Connect with Robert at robert mcalvany com or 8556385616 If you want to know more about the precious metals market check out their show the Golden Rule Radio on McAlvany Financial s Youtube channel They post every Thursday Connect with me I love helping others place money outside of traditional investments that both diversify a strategy and provide solid predictable returns Facebook LinkedIn Like subscribe and leave us a review on Apple Podcasts Spotify Google Podcasts or whatever platform you listen on Thank you for tuning in Email me sam brickeninvestmentgroup com Want to read the full show notes of the episode Check it out below 00 00 00 Robert Goodin There s been times when it only takes 50 ounces of gold or a hundred ounces of gold to buy the median home price in the states That s a good trade So gold buy real estate If it s too high it s over 200 being I think above the average Well real estate may be a little too high compared to something else like a commodity gold 00 00 31 Sam Wilson Robert Goodin a good old boy from Tennessee who believes in the golden rule like his YouTube report Golden Rule Radio Robert welcome to the show 00 00 39 Robert Goodin Hey thanks So glad to be here 00 00 41 Sam Wilson Pleasure is mine Same three questions I ask every guest who comes on the show in 90 seconds or less can you tell me where did you start Where are you now And how did you get there 00 00 50 Robert Goodin Yep So I grew up in Tennessee rural Tennessee outside of Chattanooga had a family who had some businesses They were in the boat dock business Center Hill Lake Dale Hollow Lake Fontana back in the 50 s 60 s 70 s So my mom grew up Doing that running the businesses with my grandfather And so I kind of always had an eye for trying to recognize opportunity You know what makes sense what makes sense in a business sense and societal sense 00 01 20 Robert Goodin And then what doesn t make sense when when to not say something does work went to college at Sewanee The University Of The South got exposed to some of the you know older money crap And my grandfather had always said you know those those types of people can employ you They can give you opportunity 00 01 37 Robert Goodin And it was about the people not the education that I was going to get there cause it was totally different than what I expected walking in there And so I recognize that he was a smart dude and he always said go west there s opportunity out west I ended up right out of college worked for SunTrust bank did some mortgages stuff like that for a couple of years 00 01 57 Robert Goodin And then through a family that I went to college with they had an opportunity here in Durango Colorado I quit my job cold Turkey at the bank didn t know what I was going to do but I packed up my car and left Tennessee headed out west ended up in Durango Colorado and started working for them met some more of the right people 00 02 15 Robert Goodin And I ve been doing precious metals for the last 15 years I worked for the McAlvany family They re the oldest continuously owned and operated precious metals dealer in the states The founder helped get gold legalized in the seventies So I worked for a neat family and my side hustle real estate 00 02 37 Robert Goodin So I was at the real estate conference there The Best Ever Conference met you a few years ago Sam and then saw you again not too long ago So been doing side hustle real estate deals started small scaling up and you know I sell precious metals as a as a career but the real estate thing s worked out well Colorado real estate s been good to me 00 03 00 Sam Wilson That s awesome I love your story there There s so much to pull out of that The one the one thing that I like what you said which if you re listening that don t know about Sewanee and it s pretty probably one of the prettiest campuses I think that existshere in the States That s a that s a gorgeous campus there in east Tennessee but you know it is it is about I think building your network 00 03 22 Sam Wilson And I think that s a that s a repeating theme I hear on the show It s not you know the the the kind of overused phrase is not what it s who you know but It is and it s putting yourself in those situations And I think that s a that s something that you just do over and over right I mean it didn t end when you went to Sewanee you had to continuously and you still do put yourself in the right environment in order to grow 00 03 43 Robert Goodin That s right Yeah I think it is about the people It s kind of like the saying don t marry for money but look for love among the wealthy 00 03 56 Sam Wilson I ve not heard of that That s pretty good 00 03 59 Robert Goodin You know so my my grandfather encouraged me to get involved with people you know who had businesses and and learn from 00 04 08 Sam Wilson Yeah no that s that s absolutely absolutely true Tell me you know a little bit about let s talk about gold and precious metals for a minute I don t want to stay here for too long but certainly want to hear you know what it is that you do what you re seeing in the market why people are going to gold Just just give us your overall market sentiments because this is not something that I know that much about and certainly don t specialize in a day-to-day 00 04 34 Sam Wilson Sure I think the interplay between the dollar being what everybody considers as liquidity and capital and gold I consider gold capital I go between gold and real estate 00 04 50 Robert Goodin The US dollar index right now hit the highest level a few days ago since 2003 And it sure doesn t feel like the dollar is strong If you go to the store and buy something But there s weakness in Europe specifically that has been driving the dollar index way up And I think it s it s a better form of measurement to measure the dollar price in some commodity like gold instead of looking at the dollar index because the dollar index is at a high that it hasn t been there was a high in 2020 and during COVID because the dollar was liquidity it was the safe haven currency There was a high in 2017 but the dollar poke just above that And it hadn t been that high since 2003 on the index right Well obviously you don t feel that buying something and being a consumer here in the states but the dollar index is at a high And the last two times a dollar index was is a high 2017 gold was around 1212 to 1300 Then again in 2020 at a high again around where it is right now And gold was in the 1600 1650 00 06 01 Robert Goodin Today Gold s around 1900 So you ve got gold kind of stair-stepping higher And I think that s a better barometer for how powerful the dollar actually is So I see gold as a safe haven going forward especially And it is there s some overlap between the real estate market and gold and silver because you can do precious metals in your self-directed IRA 00 06 26 Robert Goodin So it s one of the reasons we were at The Best Ever Conference You know the that group already you a lot of them have self-directed IRAs that they re doing real estate deals Well you can do precious metals in there as well So there s a lot of overlap there and it s a mindset of a tangible asset 00 06 43 Robert Goodin You know gold is basically real estate that you can move hide and and trade and liquidate Liquidity it is a big big thing I think in today s market 00 06 52 Sam Wilson Yeah And certainly certainly you know traditionally gold has been held as an inflation you know as a as a hedge against So you know seeing seeing that and I love I love the idea of not heard anybody talk about that yet about comparing gold to the dollar index because you re absolutely right 00 07 10 Sam Wilson None of us are going to the none of us are going to the gas pump or the grocery store and paying five or six bucks a gallon for diesel or gas And then you know you didn t pay in 25 and 30 more for the same product and going yeah My dollar is buying a lot more Clearly our dollars not buying more And so that s a that s a really intriguing kind of interplay between 00 07 30 Robert Goodin Yeah I think it s about what you measure it against you know measuring anything against anything There s kind of a relationship between gold and the average price of a home in America where it takes average 200 ounces of gold to buy the average house 00 07 45 Robert Goodin So I m not just measuring it in price of the home or price of the piece of property if you look at certain times and periods over time there s been times when it only takes 50 ounces of gold or a hundred ounces of gold to buy the median home price in the states That s a good trade So gold buy real estate 00 08 04 Robert Goodin If it s too high it s over 200 being I think about the average Well real estate may be a little too high compared to something else like a commodity gold So it s a a way to measure something We do that with golden silver We look for which one is undervalued or overvalued at any time and there s a relationship that they have that there s a consistent range that you can actually trade But anyway let s jump to real estate If you want to I don t know where 00 08 29 Sam Wilson I certainly do I ve got one last question for you in in the precious metals markets Where do you think today which we re recording this and obviously this can change even by the time this goes live today is May 3rd 2022 And we re recording this What is the value play right now in precious metals the gold silver palladium What is it 00 08 49 Robert Goodin Yep I would say It was silver and platinum Silver is about half of its all time high What other commodity is half of it s all time high Most of the other commodities are at all time highs 00 09 04 Robert Goodin So silver has a range that it s previously traded that it could double from here and just be pushing back to an all time high I think it s ultimately going to a higher all high time high But silver s good value Platinum is about half the price of gold Platinum is 5 to 10 times rare than gold about 12 of its supply comes from Russia which could put some strain on the price of platinum 00 09 29 Robert Goodin And so platinum s usually about one-to-one or even higher than the price of gold So selling it a 50 discount to gold I think platinum will ultimately have the day in the sun being a number of thousands of dollars an ounce And right now it s below a thousand With that said I also like gold as kind of the ballast of the ship right 00 09 49 Robert Goodin Gold is less volatile than the other industrial metals like silver and platinum have a lot of demand from the industrial side So I I d say that gold still makes sense Countries buy gold Central banks are buying gold They turned to net buyers of gold So I like to have a mix because at certain times one can fluctuate dramatically to the other one 00 10 08 Robert Goodin And I would maybe sell ounces of gold to buy silver or vice versa But silver and platinum are definitely your your underappreciated prized assets right now in the metals 00 10 18 Sam Wilson Awesome I love it Thanks for taking the time to break down your industry expertise there in the precious metals markets Appreciate that Let s talk about real estate What s a what s a deal you re involved in right now Kind of kind of just give us a case study on one of those 00 10 33 Robert Goodin Sure I started small And I was patient probably shouldn t have been being in Colorado in 2007 You could have bought anything from between 2007 and 2020 00 10 48 Robert Goodin And it was a good value but I what I did is I I got on I got my buddy who s a partner of mine to to set me up with a list of all the properties that are coming to the market As soon as they get posted I get an email and I would just scour through those Look for what s out there because you ve got to know your market to be able to identify value And so I waited years but I was looking at every single thing coming on the market not in just set the range tightly of what I could afford I set the range pretty wide because certain properties may be way out of your reach in terms of being able to buy it and make it work and be profitable and produce income 00 11 32 Robert Goodin But there may be something to that property that s out of your reach where you do want to go use debt and actually make it work because you ve got these added value things on there So I I was too patient at first in 2007 to about 2010 but I wanted to really look at what the being able to identify value 00 11 53 Robert Goodin What is the value So I scoured through all the properties coming on the market for awhile before I really selected something that made sense cause then I knew that I was buying value I knew what else was out there 00 12 04 Sam Wilson Right right What were you buying 00 12 07 Robert Goodin Single-family home at first but also before that buying land Raw land kind of just underappreciated and land that you know I can buy it at a lower value than what I thought it was worth And ultimately a lot of those pieces were not marketed well It was kind of finding a crappy realtor who didn t know what they were doing and buying land and then turn it around and selling it 00 12 36 Robert Goodin So I think my first deal was like I paid like 16 grand cash for a deal Six weeks later I sold it for 64 So you know since then I ve done similar things and it s worked out I hadn t lost money with it And you know we just we re about to cash out on one and we ve been looking for opportunity again the same way looking across the board to find a piece that s valuable you know under underappreciated but valuable 00 13 03 Robert Goodin And there s just nothing there Sam I mean we ve looked at within three or four or five hours from where we are and we re probably not going to 10 31 exchange because there s just nothing there yet 00 13 16 Sam Wilson When you say there s nothing there to buy you re saying that there s no 00 13 19 Robert Goodin No good value 00 13 21 Sam Wilson And you re saying the land and the land market 00 13 24 Robert Goodin Land Specifically land 00 13 26 Sam Wilson Were you guys taking that and subdividing that and selling them off as parcels What was what was your strategy 00 13 32 Robert Goodin Some doing that as well as just flipping And I know that kind of goes against a lot of maybe what some people are familiar with being able to flip land for a profit Right But yeah subdividing was was also key in the profitability 00 13 49 Sam Wilson Yeah I mean what are you guys and I went I ve had a couple you know intense land investors on the show and we ve we ve bonded into depth Certainly try to find them put those episodes in I don t but you know but but put those episodes in the show notes but what what were you doing Cause it does kind of go against the grain If you came to me and said Hey man here s a piece of land that s put on the market for a year as not sold but I want to buy it and sell it for a lot more I d be like no I m not in What you do differently 00 14 17 Robert Goodin It was poorly marketed That was really it Getting really good pictures talking about elevation but like specifics that added a little bit of value to somebody just walking across the board and seeing it But mostly the splitting of land was was the profitable one 00 14 33 Sam Wilson Who was the end buyer 00 14 36 Robert Goodin Ah yeah Good question Because that is key They were people who couldn t afford to get a standard bank loan So a lot of it was we bought it split it and owner financed So we carry the note and that allowed somebody to get into some place that they could camper drop a mobile home and we ll look to doing some mobile home parks 00 15 03 Robert Goodin And a lot of them are just we re just overpriced But a small scale of that was allowing somebody to not have to put 25-35 down We d take 10-15 down and owner finance it And then you know a year or two later we d sell the note full face value note and move on Also it helped them to get traditional financing 00 15 26 Robert Goodin So my parents did that a little bit in Tennessee with renters They would help the renter you know improve their credit score and get to the point where they can actually buy And so you re doing you re adding value to somebody who can t get into a property because they just can t afford it 00 15 42 Sam Wilson Right Right Or they just are they just for whatever reason don t have the skillset the skillset or the they re not lendable from a from a bank standpoint 00 15 51 Robert Goodin Correct 00 15 52 Sam Wilson Right And I think that s a great way Certainly done plenty of that as well 00 15 55 Robert Goodin And it and it was about the people I mean we did look through who we were going to be lending to instead of just taking whoever s out there because good people just need a lift up a little bit 00 16 10 Sam Wilson Oh yeah Oh yeah Done plenty of that Where where you have people that you know making six figures a year but have made some mistakes a few years before and they re just they just can t get bank financing 00 16 20 Robert Goodin That s right 00 16 21 Sam Wilson Those have been excellent excellent products where you re like okay put your money down And they pay on time and it s great Who did you end up Who s an end buyer of notes on things like the on 00 16 33 Robert Goodin We knew a few people who were willing to buy it And one thing I learned in that process is to always have a prepayment penalty because a buyer doesn t necessarily want to get into the due diligence of looking at buying the note and then they buy the note 00 16 51 Robert Goodin And then they get bought off you know the the borrower pays the thing off the next month They didn t collect anything They did a lot of due diligence And so the prepayment penalty was key in actually finding a solid buyer That was something we learned in the process 00 17 08 Sam Wilson Yeah Were there any other surprises along the way maybe that you ve learned in your real estate investing 00 17 15 Robert Goodin It s about the right people And I mean that s one of the reasons that I think you and Ibecame friends I ll call it That is you know you you can kind of tell when somebody has your interest involved or in mind And you know we named our YouTube show Golden Rule Radio after treating somebody how you want to be treated And it s about the people whether it s somebody who is your client whether it s some partner whether it s you know the person who you re lending to it had to be the right fit 00 17 46 Sam Wilson That s great Yeah Absolutely Absolutely But no I think you re absolutely you re spot on I mean that s the thing we we talk about all the time here is is is when you re a passive investor especially it s gotta be the know like and trust factor And if that s not there then like what are what are we absolutely doing 00 18 03 Sam Wilson Tell me give me your thoughts on using debt and leverage I mean you re a precious metals guy that typically puts you in a in a less in a more risk averse category right You kind of aren t you aren t running mainstream with everybody So that would probably in my opinion lend itself to not being in love with debt like the rest of us real estate sickos are Is that a fair assumption or what are your thoughts that 00 18 30 Robert Goodin One of the main reasons that I haven t been using debt is my partner doesn t like that I m okay with it if it makes sense I like fixed rates rather than variable especially with the interest rate environment 00 18 39 Robert Goodin I think we re going to see over the next five to 10 years you know fed chairman s talking very similarly about how Paul Volcker back in the early eighties raised interest rates to curb inflation Well he the current president and the fed president he he knows who butters his bread and I think there s maybe not as much interest rate hikes coming as maybe they think but that s a whole nother conversation 00 19 06 Robert Goodin I m okay with debt fixed rate I like it but my partner doesn t want that 00 19 12 Sam Wilson It doesn t want that I mean what what are what are some of his maybe I mean cause obviously you agree with him because you continue to invest with him So what are some of the thinkings that you get that you you re in alignment with Why you say Hey you know what I m good not using well 00 19 25 Robert Goodin Yeah You know with land deals I think there s a lot more risk than something that s an income producing property with what you re doing Sam I really like what you re doing you know because you you ve got kind of an already formed a business model 00 19 38 Robert Goodin Right right You know kind of what to expect like where you can add value where you can improve the bottom line the land deal Do you not going to produce income like you would with your your deals So there is a lot more risk there getting stuck with the property We didn t want to be making payments on these land deals if we couldn t move it So different category I d say in the real estate market that actually made us kind of be more of a cash buyer rather than borrow borrowing on it I have used debt I bought a vacation rental 2020 right before COVID hit and there was a value-add type of property completely renovated it 00 20 20 Robert Goodin It s paying for itself We re using it about half the year banded for itself and I ve been offered double whatever it for So I I liked that I looked at borrowing on another unit this week and you know the the terms on it were more mainly almost 6 just a you know a longer term rental And so rates have definitely affected things and are going to continue So it has to make sense You ve got to you gotta be a numbers guy like you are to make that doubt work for you and know what you can expect to be able to pay and have your margin 00 20 56 Sam Wilson I was talking to an investor Gosh just before this call And he called and he s like Hey you know we re having a big cash out on the sale of one property buying something else 00 21 06 Sam Wilson So I m going to have cash from that And he goes but on the new acquisition do I use cash to buy it Do I put a HELOC on that property It s the small farm homestead properties like man I could get or do I get long-term fixed rate You know which way do I when we we kinda just went through the mechanics of all of it 00 21 22 Sam Wilson No I m not comfortable with the interest rate risk right now You put a HELOC on a property and maybe it s a half a million or a million dollar property And we hit 16 18 interest like the early eighties Whoa That s a tough nut to cover every single year And I doubt you re gonna be able to do that on a million dollar property 00 21 40 Robert Goodin That s right 00 21 41 Sam Wilson Yeah I mean so that like you said you know it cuts both ways That s a that s a beautiful thing when properly structured but improperly structured and and it It can really really absolutely hurt you 00 21 52 Robert Goodin I ve used variable rate you know in a fluctuating rate that HELOC I ve got those set up to be able to use those for a short amount of time 00 22 00 Robert Goodin Like I know when I m going to be able to pay that back Right Very versus something that I m going to buy and hold for a while I m good with the fixed rate and I ll pay a higher rate even on a fixed rate something like that 00 22 13 Sam Wilson Yep No Good Couldn t agree more with you One last question here Robert before we sign off certainly appreciate you taking the time to break down the the precious metals markets for us 00 22 21 Sam Wilson Tell us you know about your land investing investing in short-term rentals your thoughts there on debt And you know what you know I guess the other cool piece you brought to the table was that was the U S dollar index and how maybe that s a fault Indicator of what the dollar is actually worth 00 22 35 Sam Wilson I hadn t heard that before Certainly also really enjoyed that and just got love love what you ve done in real estate and the precious metals markets If there were a piece of advice that you ve received from a mentor over the years you d say man that s the best piece of advice I ve received Any idea what that piece of advice would be 00 22 51 Robert Goodin There s two types of people in the world One pays interest one earns interest So you know you can relate that to debt or you can relate it to the deals you re doing which you know what you re going to earn from it you know to you know you ve got some variables but you do have the numbers down 00 23 10 Robert Goodin I like what you ve sent me in the past You have the numbers down and that s what matters So you re either going to be paying interest And not earning or paying interest and having a margin And that s what I think you re about What s your deals I like it 00 23 26 Sam Wilson Awesome That s cool man Robert appreciate you coming on the show today If our listeners want to learn more about you what is the best way to do this 00 23 33 Robert Goodin They could email me robert mcalvany com It s M C A L V A N Y The YouTube show that I do that posts every Thursday is called Golden Rule Radio It s on the McAlvany Financial channel on YouTube that comes out every Thursday It s about 10 minutes metals market specific but email or call My direct line is 8 5 5 6 3 8 5 6 1 6 00 24 02 Sam Wilson Awesome Robert thank you for your time today I do appreciate it 00 24 05 Robert Goodin Thanks Sam My pleasure Click here to visit this podcast episode