Wed, 23 May 2018
CW 1004 - The Future of Interest Rates & What Taylor Swift, Uber, and Robots Tell Us About Money with John Tamny, Part 2
Jason Hartman starts off today's episode with a little talk on where interest rates may be headed (according to one economist) and how that would impact current real estate investors. Hint: it's a pretty good thing. He also has to throw in a qualifier to his "Amazing time to be alive" mantra, because there are a few things that aren't amazing right now.
Then Jason finishes up his interview with John Tamny, director for the Center for Economic Freedom, Editor of Real Clear Markets, and author of Who Needs the Fed?: What Taylor Swift, Uber, and Robots Tell Us About Money, as the two discuss the impact of automation on all aspects of our life. John is excited about what all of this change will mean for the common worker and believes it will lead to higher quality of life for all.
[4:12] A qualification to the beloved Jason mantra of "It's an amazing time to be alive"
[7:18] Let Jason control the music and he cares not who controls the laws and the money
[12:13] What Martin Armstrong thinks interests rates will be jumping to
[15:28] Investors already in the game are praying for higher interest rates
John Tamny, Part 2
[20:18] Automation is going to lead into a surge in new kinds of jobs
[25:00] The demand for entertainment and service is going to explode
[26:49] Tamny's Law: as prosperity grows more and more people escape laziness because they find work they love
[28:29] John's thoughts on Universal Basic Income
Mon, 21 May 2018
CW 1003 - Creating Long-Term Tenants & Who Needs the Fed?: What Taylor Swift, Uber, and Robots Tell Us About Money with John Tamny
Jason Hartman kicks off the show with listener Nate and his mom discussing what was learned during the recent Creating Wealth seminar, as well as getting some tips about how to create long-term tenants who are understanding of rent increases.
Then, in part 1 of their interview, Jason talks with John Tamny, director for the Center for Economic Freedom, Editor of Real Clear Markets, and author of Who Needs the Fed?: What Taylor Swift, Uber, and Robots Tell Us About Money about why he believes the Fed doesn't have anywhere near the power they're given credit for, why their policies aren't effective in today's world, and why demographics may not be as useful as they're believed.
[5:01] If your tenants are there too long it might be a sign your rent is too low
[10:22] Some tips on long-term tenant retention
[14:49] Evictions don't just stem from not paying rent
John Tamny Interview:
[19:57] How Uber made John realizing something about the Fed
[23:40] The importance of the Fed is vastly overstated
[28:42] The idea that the rest of the world is in on some deal where they hold worthless treasuries isn't realistic
[31:39] Demographic arguments regarding Japan don't hold a lot of weight with John
[35:26] Money flows to its highest use, regardless of the Fed
Fri, 18 May 2018
CW 1002 FBF - Dr. David D'Ambrosio Client Case Study - Equity Stripping, 1031 Exchanges & Market Diversification
Investment Counselor, Sara is back on the show. She joins Jason to discuss her three new properties in Memphis, how a client beat her to the punch on other properties she was interested in and just how competitive the market is right now. And in the client case study, Dr. David D’Ambrosio shares his experiences with the 1031 Exchange on properties in the Orlando and Indianapolis markets. He shares his opinions on why more high-tax bracket professionals are not investing in real estate and he asks Jason about what his next steps should be?
The beautiful thing about real estate is you can acquire an asset, get your money back out and still own and control the asset. Plus, you pay no taxes on the money you extract.
[2:12] Sara just closed on three properties in Memphis and she wears PJ’s to bed.
[6:16] Rate locks - Should you let it float or lock it in?
[9:15] Commodities that make up a house are copper wire, glass, steel, petroleum products are independent of any currency.
[13:53] Is the Creating Wealth show the Fox News of real estate? One listener thinks so.
Dr. David D’Ambrosio Client Case Study:
[17:34] Dr. David D’Ambrosio is Radiation Oncologist living the American Dream. He has always had an interest in real estate.
[19:52] Dr. David recently did a 1031 Exchange and then purchased four properties in Orlando.
[21:34] There are two ways to diversify a real estate portfolio. One is location and the other is through cash flow and appreciation.
[23:25] The 1031 Exchange allows for only 45 days for identifying properties but up to six months to close.
[26:08] It’s frustrating more people, doctors in particular, aren’t investing in real estate. It’s an absolute no-brainer.
[32:16] Local community banks will provide financing to investors after they reach their traditional property limit.
[38:24] Is it feasible to do a cash out refinance if you can get a sizable amount of cash?
[40:27] The deferred down payment option offered a nine-year break even point.
[43:25] Equity stripping is pulling the money out of a property, having control of the cash and still own the property.
Mentioned in This Episode:
Wed, 16 May 2018
Creating Wealth's 1001st episode is a time to take a look back at the people who have made this show possible, the listeners and clients. Jason has been blessed to have such great clients who come on the podcast to tell other listeners about their real estate journey. Today we've curated some mini client case studies as we look back at what actual real estate investors have to say about their experience working with Jason.
Mon, 14 May 2018
Today is a milestone episode, number 1000! A big thanks goes out to all the guests who have come on the show and all the client case studies who have come to share their real estate journey. The first half of the show is a thanks to them.
The 10th episode for today is Jason Hartman talking with singer Colbie Caillat about how she managed to start her career using MySpace, as well as how she's handled rejection in her career, how she found her creative work process, dealing with rejection, and more.
[4:38] Thank you to all the guests who've come on the show
[9:25] A few listener soundbites from client case studies
Colbie Caillat Interview:
[15:04] Where did the idea to launch her career on MySpace come from?
[18:00] The song writing process
[23:18] Who was the song Capri written for
[26:48] How Colbie stays healthy on tour
[31:12] Dealing with professional rejection
Fri, 11 May 2018
Today's Flash Back Friday comes from Episode 803, originally published in March 2017.
This episode includes a recording of a live Q&A session from a Creating Wealth Seminar.
The Investment Counselor Panel shares real life examples of how investors benefit from the free education and their hands-on assistance. If you are interested in investing in the most historically proven asset class, income properties this podcast is a great place to start. It also includes the reasons why investors would want to attend a future Creating Wealth Seminar and the benefits of joining the high-level Venture Alliance Mastermind.
[3:09] Venture Alliance wrap-up and details about the upcoming Chicago event.
[11:16] Happy 13th Anniversary to the Creating Wealth Seminar!
Live Investment Counselor Panel Part 2 Q&A:
[16:19] The process of finding and vetting a Local Market Specialist.
[19:02] Striking the right balance between A, B and C properties in a portfolio.
[24:13] Amortization of property components.
[27:10] How many properties should I have in one bank account?
[35:59] What benefit do Investment Counselors provide to investors?
[44:20] Do Investment Counselors have different areas of expertise?
[49:28] How to best utilize an Investment Counselor?
Mentioned in This Episode:
Wed, 9 May 2018
Today's episode starts with an invitation to Jason's Philadelphia Creating Wealth seminar that's coming up soon. He also finishes his talk with Doug about portfolio reviews and making your money actually work for you.
Finally Jason talks to Dr. Eric Pichet, Professor & Director of Specialized Masters Program in Wealth Management & Real Estate Management at KEDGE Business School in France, about real estate around the world, as well as the current view of cryptocurrency by governments across the globe.
The two discuss how there is no global real estate market, but there are similarities in each of them, why the US home market is so much bigger than other nations, how cryptocurrencies are being received in Europe and whether governments and central banks will be moving to crush them in the near future.
Intro with Doug:
[6:48] Your returns can be dampened by lazy money, make that money work for you
[9:27] Return on equity percentage can tell you when to rebalance your portfolio
[13:52] Why corporate finance tracks return on equity so much
Eric Pichet Interview:
[16:25] There's no global real estate market, but we seem to be in about the same place in the cycle of each of the big areas
[20:09] Eric's take on Jason's 3 types of market belief
[21:19] Why Jason thinks the European home market is much slower than the US
[24:54] The series of economic events that led to French citizens being interested in real estate
[26:52] The sentiment about cryptocurrencies in Europe
[30:53] How are cryptocurrencies viewed by governments and central banks?
[33:40] Eric expects the G20 nations to declare Bitcoin as a tool for money laundering and terrorism
Mon, 7 May 2018
Jason Hartman starts off the show with client Doug about portfolio makeovers, why you should stay in the game for the long run, and the fallacy of the passive investment. Doug got out of the real estate business just before the (positive) market correction and missed out on a lot of money.
Then, Jason finishes his client case study with Muthiah. This time the two look at the actual process of Muthiah filing a claim against a bad provider and how he was about to get restitution after some avenues had failed. Jason also explains how to get a hold of his Hall of Shame resource list, and why you should file complaints even if they're not likely to help you alone.
Jason & Doug Intro:
[5:05] There's no such thing as a passive investment, but there are some things that are easier
[9:16] If you do the math properly, real estate versus the stock market isn't even a competition
[12:15] The problem with being too passive is you don't learn from your successes or failures
Muthiah Client Casey Study, Part 2
[20:00] Muthiah has never tried to self manage his current 20 properties
[23:00] Want Jason Hartman's Hall of Shame resource list? Fill out any form on JasonHartman.com
[25:18] Muthiah's process of filing complaints against the provider
[29:48] You're not just filing these complaints for yourself, it's your duty to protect other people
Fri, 4 May 2018
Today's Flash Back Friday comes from Episode 801, originally published in March 2017.
This episode includes a brief history of Jason’s experiences in the real estate market from 2004 to the mortgage crisis of 2008. Jason correctly predicted the crisis and tells us what signs to look for in the future. Then, a live recording of a Creating Wealth Seminar with a panel of Investment Counselors answering real participant questions about mortgage sequencing, the importance of leverage, and common client challenges.
[2:49] Details of the upcoming Creating Wealth Seminar and Memphis Property Tour.
[4:11] Jason predicted the collapse of the mortgage industry way back in 2004.
[11:16] Meeting other investors is one of the best things about attending a live event
Investment Counselor Panel Recorded Live:
[14:03] Meet the Panel: Investment Counselors Sara, Carrie, and Oliver.
[20:25] What areas of the process do clients find challenging?
[24:30] During the recession, how did investment counselors help investors?
[27:07] A lesson in the importance of leverage.
[29:57] The strategy for mortgage sequencing.
Mentioned in This Episode:
Wed, 2 May 2018
CW 995 - Your Investment's Weak Link & Dealing with Bad Sellers - Client Case Study with Muthiah, Part 1
Today's episode is another in property management education. It's crucial that you identify the weak link in all your investments, as well as figuring out a safeguard against them. When it comes to your real estate investing, it's quite possible that your weak link is your property manager.
After his intro, Jason Hartman has part 1 of a client case study with Muthiah, where the two discuss an incident Muthiah recently had with a vendor, and what actions you can take when you're being wronged.
[5:25] Cutting out the middle men - property managers
[9:08] One of the best decisions Jason made when he got into the nationwide real estate business 14 years ago
[13:09] Looking for the weakest link in your investments
[17:30] Jason's been accused of being a complainer, but is that such a bad thing? Complainers change the world
Muthiah Client Case Study:
[22:27] What happened to Muthiah that created tension with the seller
[24:55] If the seller wants to close before the repairs are completed, the only way you accept is if they have money held in escrow in case they don't do what they promised
[28:00] The two ends of the company spectrum
[30:51] What Jason wants you to negotiate with your property management contract
[34:52] The inherent conflict of interest with property managers