Creating Wealth Real Estate Investing with Jason Hartman

Jason Hartman is joined by contributing author for GoldMoney.com, Alasdair MacLeod for a rousing discussion of the decline of the European economy, the mistakes of the European Central Bank and EU, and how “governments are eating their own children.”

Alasdair makes a rather accurate comparison between the fall of Rome and the current economic disaster around the world, calling it the Nero influence. Governments continue to spend money and introduce new taxes that are detrimental to the people they serve. The ECB is now lowering collateral standards as they run out of quality collateral, such as taking on mortgage-backed securities, in exchange for helping banks and governments.

Alasdair said the real problem among Greece, Spain, Italy and other countries in crisis is that they are broke, yet they continue to meet to discuss increasing spending to build infrastructure and creating token taxes. Governments the world round are in a debt trap, including the U.S. Alasdair feels there is only one way to defer the imminent fall and that is for the Central Banks to come together and put into play quantitative easing.

Governments would then need to seriously cut their excessive, wasteful spending.

Direct download: CW_561_FBF.mp3
Category:general -- posted at: 6:59pm EST

If you are in control of your life your kids do not talk back to you, you tell the waiter your food is subpar and you believe in every single word you say. If the aforementioned doesn’t ring true for you then you need to “grow a pair” and get your house in order. If you decide not to tell someone they are stealing your time and money at your business then by default you are condoning it. Larry believes you are providing people a service by telling them the truth. They need to experience the failure and the pain in order to allow them to learn from their mistakes. Keeping quiet doesn’t help anybody. 

 

Last call for Jason Hartman University Live in San Diego

 

Key Takeaways:

Jason’s Editorial:

[1:58] Our 2 day content driven real estate investment course, JHU Live! in sunny San Diego 

[3:33] The Venture Alliance trip to Newport Rhode Island in the last days of September

[4:56] Is this the beginning of the economic meltdown

[6:04] Content for JHU Live includes specialists in land contracts and investment property lenders 

 

Larry Winget Interview:

[8:07] Entitlement is the biggest enemy to our society

[8:59] People need stronger opinions and need to stand up for them

[9:44] Living on the edge is what gets one into history books

[10:50] The “I have a pair” test 

[12:16] If you put up with something you condone it

[12:50] If you want to do the other party a service speak up about crappy service

[13:54] Peale’s “ruined by praise than saved by criticism” quote

[14:57] Ground your opinion and refuse to create drama

[16:14] I provoke people on purpose 

[17:33] Which is better having rabid fans or rabid enemies

[19:35] I can count on my haters, they buy my products 

[20:28] Numbness is a caused by a of lack of confidence in a speaker's’ faith in what they say 

[21:51] Businesses can grow a pair by refusing to tolerate thieves or 20% of their employees

[23:27] We expect more out of our government than we expect out of ourselves 

[25:21] Being in the middle is a safe place but it’s no fun

[27:12] Honest and open communication isn’t welcome in a world of political correctness

[28:44] I respect all opinions on my social media page 

[30:38] It’s not about changing somebody else it’s always about yourself

 

[32:49] Kid’s need to experience failure and friends need the truth

Direct download: CW_560_10th_Show_Larry_Winget.mp3
Category:general -- posted at: 2:37pm EST

Many of you have trusted us with your past and ongoing real estate investment transactions and we appreciate it. We take time in today’s episode to share your successes with others, discuss the joy of seeing you at live events and invite you to contact us if you would like to be on the show. We enjoy having you as clients and we are happy to offer you the type of service that a group of our size can acquire. Your investment portfolio’s are leading you towards financial freedom and your stories are inspirational. Thanks and congratulations from our entire team. 

 

Key Takeaways:

[1:42] Talking directly to you the clients and the listeners

[3:17] Freedom is the benefit of investments

[3:55] Fannie Mae/Freddie Mac guidelines - 10 loan per person limit

[4:50] Congratulations to those building great portfolios! Add applause here

[6:29] Russ - a real client story about firing his boss

[9:06] Kathy from California signed up for JHU Live

[9:30] Congrats to Jessie for a recent close of properties in Memphis

[10:01] Over Diversification is more than 3-5 markets 

[10:50] Getting clients to open up about their goals from the beginning  

[13:00] Feedback helps you to consolidate and double down in a few good markets 

[16:06] A B market with an A team is better than an A market with a B team

[18:00] Our organization gives you leverage through quantity

[18:57] The soft factors are personalities 

[19:54] Free shirts for investment therapists and matchmaking

[21:05] It truly is still a Mom and Pop business structure which preserves our opportunities

[23:26] Toby’s personal experience of a 19 property portfolio

[25:17] A shout out to Andy & Stacy for continued success

[26:09] The shoulda coulda woulda mentality 

[27:04] Damon & Bill working land contracts 

[29:03] We’d love to have you on the show 

[30:18] JHU Live & Venture Alliance events are coming up soon

[31:34] Lifetime rental coordination through our organization

[32:03] Come out and meet us at our live events at least once a year

 

Mentions:

JHU Live - Register here 

JasonHartman.com

 

reviews@jasonhartman.com for 30% off 

Direct download: CW_559_Client_Congratulations_26_Portfolio_Profiles_with_Sara.mp3
Category:general -- posted at: 6:02pm EST

Jason Hartman hosts an interesting interview with Professor Laurence Kotlikoff, author of The Clash of Generations: Saving Ourselves, Our Kids, Our Economy, regarding the problems with the economy and the effect that the astronomical national debt and government spending will have on generations to come.

Professor Kotlikoff paints a picture of the magnitude of these issues very clearly, explaining that the fiscal gap is $211 trillion. He explains that we would have to raise every federal tax immediately and permanently by 64 percent or cut all non-interest spending by the government (Medicare, Social Security, defense spending, etc) by 40 percent. “The country is broke, totally broke,” says Professor Kotlikoff. He emphasizes that this applies to today, not 75 years down the road.

Jason and Professor Kotlikoff also discuss why the 2007 quadrupled money base through money printing hasn’t hit the streets yet in the form of hyperinflation. Essentially, banks are being bribed to hold money reserves by the Fed.

In simplistic terms, the Federal Reserve prints the money, lends it out at very low interest rates to the banks, and then the banks deposit it back with the Federal Reserve and get a higher interest rate. This makes banks more solvent over time without the public ever knowing what is going on. Professor Kotlikoff also talks about a proposal to fix the financial system, which he refers to as a fragile system, presently a “trust me” banking system where the public is unaware of what the banks are doing with their money.

Laurence J. Kotlikoff is a William Fairfield Warren Professor at Boston University, a Professor of Economics at Boston University, a Fellow of the American Academy of Arts and Sciences, a Fellow of the Econometric Society, a Research Associate of the National Bureau of Economic Research, President of Economic Security Planning, Inc., a company specializing in financial planning software, a frequent columnist for Bloomberg and Forbes, and a blogger for The Economist and The Huffington Post.

Professor Kotlikoff received his B.A. in Economics from the University of Pennsylvania in 1973 and his Ph.D. in Economics from Harvard University in 1977. From 1977 through 1983 he served on the faculties of economics of the University of California, Los Angeles and Yale University. In 1981-82 Professor Kotlikoff was a Senior Economist with the President’s Council of Economic Advisers.

Professor Kotlikoff is author or co-author of 15 books and hundreds of professional journal articles. His most recent books are The Clash of Generations (co-authored with Scott Burns, MIT Press), Jimmy Stewart Is Dead (John Wiley & Sons), Spend ‘Til the End, (co-authored with Scott Burns, Simon & Schuster), The Healthcare Fix (MIT Press), and The Coming Generational Storm (co-authored with Scott Burns, MIT Press).

Professor Kotlikoff publishes extensively in newspapers, and magazines on issues of financial reform, personal finance, taxes, Social Security, healthcare, deficits, generational accounting, pensions, saving, and insurance. Professor Kotlikoff has served as a consultant to the International Monetary Fund, the World Bank, the Harvard Institute for International Development, the Organization for Economic Cooperation and Development, the Swedish Ministry of Finance, the Norwegian Ministry of Finance, the Bank of Italy, the Bank of Japan, the Bank of England, the Government of Russia, the Government of Ukraine, the Government of Bolivia, the Government of Bulgaria, the Treasury of New Zealand, the Office of Management and Budget, the U.S. Department of Education, the U.S. Department of Labor, the Joint Committee on Taxation, The Commonwealth of Massachusetts, The American Council of Life Insurance, Merrill Lynch, Fidelity Investments, AT&T, AON Corp., and other major U.S. corporations.

He has provided expert testimony on numerous occasions to committees of Congress including the Senate Finance Committee, the House Ways and Means Committee, and the Joint Economic Committee.

Direct download: CW_558_FBF.mp3
Category:general -- posted at: 7:00am EST

Do you have the sense to wait out the market during lag times? Buy and hold is Jason’s philosophy and he is a self made multi millionaire. The average American will never buy at the markets lowest point nor sell at the highest point. For most it takes time for the media’s influence to inspire action which means always being late to the game. Increasing your knowledge and learning pertinent facts and figures will help you to anticipate upcoming changes in the market. This September in San Diego is your opportunity to receive a complete real estate investment education so you too can create your own wealth. You can sign up at Jasonhartman.com and don’t forget to claim 30% off of JHU Live with screenshot of your iTunes review. 

 

Key Takeaways:

[2:10] The impact of technology on inflation 

[3:18] Rate of change in inflation rates 

[6:01] Deflation in 2015 - July being the most deflationary month ever in the U.S.

[8:24] Maintaining yield with the income and expense ratios

[9:53] Staying power through lag time 

[11:09] How deflation affects real estate markets 

[13:58] Cash flow allows you to weather the downmarket storm

[16:15] Jason’s Commandment #5 - Thou shalt not gamble

[18:22] Naresh questions what happens to the real estate market if we see a rate hike in 2016

[19:00] The 3 dimensions of real estate are buy, rent or homeless

[21:42] Multidimensional asset class and price discovery 

[23:08] An example of an exchange to a linear market

[25:00] Jason Hartman University Live in San Diego and Venture Alliance trip to Rhode Island 

[30:00] Gold doesn’t produce income and its not a good asset class 

 

Mentions:

Jasonhartman.com

Shadowstats 

 

reviews@jasonhartman.com 


Jeff, a client, has questions regarding recent investments in Chicago. Research has led him to question local school rankings, foreclosures and exit rates of the area. A Chicago local market specialist addresses all three items and adds some facts and figures regarding this world class city, such as 42% of the people in Chicago are renters. Plus, the young mobile class will be attracted to Chicago for its affordable living and international recognition. 

 

Getting 30% off of JHU Live is as easy as sending us a screenshot of your review on iTunes.  And don’t forget to sign up for next Venture Alliance in Newport Rhode Island during September to see mansions and fall foliage. 

 

Key Takeaways:

[2:14] Absorption rates - understanding the statistics

[4:35] Comparing La Hoya, CA to the Chicago, IL housing market in cost per square foot

[7:09] Invest in assembled commodities they are far less volatile 

[9:50] The median sales price and the median list price are telling numbers about the area 

[11:59] Chicago average home price 

[13:53] Foreclosures can flood the market changing the absorption rate 

[14:36] Jeff wants to know if he is suffering analysis paralysis

[15:36] In Chicago family oriented areas have higher taxes

[18:07] A school’s infrastructure may be more important than its ranking

[19:57] The foreclosure process in a judicial foreclosure state takes much longer 

[21:00] Zillow groups all sales in an area together it may not be a good guide for individual homes 

[21:50] Housing markets that are slower to recover are often more stable to invest in  

[22:56] Chicago is a world class city and a thriving economy 

[25:34] The midwest is a favorite emerging market 

[26:51] Chicago is the most moved to destination in a study by Van Lines 

[28:06] San Diego event is Jason Hartman University Live 

[28:30] Lender Top 1%  of originators in the nation it’s a volume business 

[29:48] Take a screenshot of your iTunes review and receive 30% off of JHU Live! 

 

Mentions:

Jasonhartman.com

How to Lie with Statistics

Zillow

Van Lines 

 

reviews@jasonhartman.com 

Direct download: CW_556_Absorption_Rate_Chicago_Q26A_Schools_vs_Prices.mp3
Category:general -- posted at: 4:41pm EST

Land contracts are something that a lot of investors have heard of, but maybe don’t fully understand. Jason Hartman invites a Meet the Masters speaker, to join him on the Creating Wealth Show to discuss what land contracts are, how they differ from traditional landlord operating processes and even goes in to what to do if it all goes wrong. He’ll be speaking more in-depth at the Meet the Masters event in January, but here’s a taste of what you can expect.

 

Key Takeaways

06.10 – Guest provides his personal experience and how he started to get involved with land contracts.

09.50 – Land contracts are there to help out those who can’t buy through conventional financing processes.

14.25 – Because of the distinction between owner and deed holder, tenants with land contracts usually have a different mindset which is far more preferable for landlords.

18.25 – Negotiations are currently happening in an attempt to get around an 85% discount on land contracts.

22.05 – There’s always a risk. Here it is: ‘What if the person doesn’t pay?’

27.18 – If getting into this side of investment, it’s vital to know your legal rights and know how to work with the attorneys.

34.26 – Don’t get lulled into a sense of security of thinking it’s risk-free, but there are certain options with fewer risks and more chance of success.

37.00 – Know your land contract buyer and their background before agreeing anything.

38.58 – If you haven’t yet registered for Meet the Masters, time and capacity limits are now running short so be sure to take advantage of a great opportunity and register at www.JasonHartman.com

Direct download: CW_555_FBF.mp3
Category:general -- posted at: 1:25am EST

2016 presidential candidate Mark Everson has qualifications in both private and government sectors. He believes the U.S. needs a leader with experience in both. His policies, he believes, closely match the desires of the American public and he promises to uphold the constitution and restore the pride we once had for our nation. He is asking listeners to engage with him on his website. Early on, Jason and Naresh discuss markets affected by fracking and why rental properties may not be a good idea right now. JHU Live is now at early bird level #2 now so get your spot reserved today and will you join Jason in Dubai? 

 

Key Takeaways:

 

Jason’s Editorial:

[2:45] Naresh reflects on Porter Stansberry’s podcast

[5:40] Baltimore is a dilapidated city with high crime

[8:41] Give us your feedback on our new search engine at Jasonhartman.com

[10:30] Pittsburgh and Buffalo just don’t have many good real estate investment options

[11:20] Utopia in the shale oil boom areas and Obama’s 3rd term 

[13:42] Newport Rhode Island is our next Venture Alliance trip

[15:21] We will hold on to our properties in Houston but may not buy anything else 

[16:10] Shale oil (fracking) exploration is expensive 

[17:55] A qualified candidate that hasn’t been invited to the debates

[18:50] Debates are a scam and money corrupts elections

[22:14] JHU Live event in early bird level #2 - 30% off for an iTunes review

[22:47] The Venture Alliance trip in September 

 

Mark Everson Interview:

[23:36] I’m running because the U.S. needs a leader who knows government and private sector

[24:38] Mark’s positions on key issue’s at markforamerica.com

[27:30] Our shared destiny - sacrificing for the nation and assimilation 

[29:38] Donald Trump may be sabotaging the republican party

[31:27] Does the U.S. have dynasty type families made for politics

[32:40] Executing laws as written not as we want them to be 

[34:01] Wall Street is the modern version of organized crime

[34:41] Executive branch overreach 

[36:05] Running for a single term is best for the country

[36:56] Thoughts on Obamacare and defining full time work

[39:25] Would line item veto hold the president responsible to the people

[41:08] Being excluded from the debates 

 

Mentions:

Jasonhartman.com

Alliant Group 

 

MarkforAmerica.com


Jeff, an existing client, is researching 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. Because it’s true that 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. And don’t miss next Wednesday when Jason interviews another presidential candidate and tells you more about JHU Live, a real estate investment workshop in sunny San Diego, California. 

 

Key Takeaways:

[1:40] Look forward to Wednesday for an interview with a presidential candidate

[2:46] The next Venture Alliance trip will be in Newport Rhode Island & Martha’s Vineyard

[5:53] JHU - Live in San Diego - Meet the Masters

[7:28] Land Contract experts will be at Jason Hartman University Live

[8:42] Write a review on iTunes and send a copy to reviews@jasonhartman.com and get 30% off 

 

Jeff Morris interview:

[10:02] Jeff asks Jason’s advice about investing in Chicago 

[11:43] Chicago is great but there are a few reasons why it’s not a slam dunk

[11:58] But...the team you use is important! Pay attention to the in house services

[14:21] Cash flow and rent to value ratios in Chicago 

[17:01] Is a low vacancy rate a sign of low rents

[19:50] The psychology behind raising rents for existing tenants

[21:55] Our local market specialist in this area know what they are doing

[22:54] Are there advantages to buying a group of properties all at once

[24:43] Chicago is the most affordable world class city in the world 

[25:59] Rental Properties in Little Rock and Memphis versus rental properties in Chicago

[28:09] A million shades of gray in real estate investing

[30:50] An extreme self management example 

[33:20] Chicago area is a vibrant market 

 

Mentions:

JasonHartman.com

 

reviews@jasonhartman.com 

Direct download: CW_553_Jeff_Morris_Client_Case_Study_26_Chicago_Q26A.mp3
Category:general -- posted at: 8:23pm EST

Orginally aired as CW 117

“For far too long, too many people have regarded home ownership as ‘a good thing.’ It is certainly true that home ownership has its benefits. But, like everything else, it also has its costs and its risks.” This statement by Creating Wealth Show guest, American economist Thomas Sowell has been regretfully muttered by many homeowners in various forms over the past two years.

Sowell is currently a senior fellow with The Hoover Institution at Stanford University. In 1990, he won the Francis Boyer Award, presented by the American Enterprise Institute. In 2002 he was awarded the National Humanities Medal for prolific scholarship melding history, economics, and political science. Known for his economically laissez-faire perspective style while writing, Sowell’s latest book, The Housing Boom and Bust, shows how Democrats and Republicans ruined both the housing and financial markets.

Tune in as your host, Jason Hartman and Thomas Sowell discuss how “the current economic crisis grew out of policies based on good intentions and mushy thinking.” Upcoming Shows will feature: Andrew Waite, Publisher of Personal Real Estate Investor Magazine and Dan Blacharski, author of The Part-Time Real Estate InvestorHow to Generate Huge Profits While Keeping Your Day Job.

Direct download: CW_552_FBF.mp3
Category:general -- posted at: 9:00am EST