Fri, 29 December 2017
CW 933 FBF - Happy New Year! Understanding Acquisition Costs, Identifying Markets, Cash Flow, Listener Questions
Today's Flash Back Friday comes from episode 616, from January 2016.
Phase 1: Buy some properties, Phase 2: Protect your assets
Jason answers your questions in this high-level Q&A. The main takeaway from this episode is to buy some properties now. Getting started is often the hardest part for real estate investors. If you don’t start today you may put off creating a wealthy future for yourself and one day realize it is too late. If you buy your properties with the help of Jason’s team you are able to leverage the huge volumes at which they do business. You get seasoned, professional help with your very first property purchase. You don’t have to do this alone!
[3:36] Oliver was a dedicated listener before working as an investment counselor
[9:31] Why doesn’t the whole world know about income property?
[11:27] 14 million individual investor-owned single family homes
[15:20] Jason answers real listener questions about LLC’s, evictions and identifying markets
[17:57] 1.) Buy some properties and 2.) Protect your assets
[23:57] How to identify and choose a real estate investment market and the local market team
[29:21] Understanding acquisition costs for the Local Market Specialist
[32:55] Properties on JasonHartman.com are not necessarily the best deal you can get
[35:07] Multiplexes or single family houses? Which is better for cash flow?
[38:56] Higher priced properties have lower rent to value ratios
[40:25] Meet the Masters event is coming up – you can still get a ticket
[41:45] Venture Alliance trip to Dubai on President’s Day weekend
Thu, 28 December 2017
CW 932 - GOP Tax Reform, Prepaying Property Taxes, Improved Retail Sales, Accelerated Bonus Depreciation with Ryan Schellhous, Part 2
Jason kicks off the show looking at a microtrend he's been seeing after the GOP Tax Reform was passed, which may only be attributable to people wanting to hate anything Trump does. He also looks at the response of people to the tax reform, with people looking to prepay their property taxes and write it off on their 2017 taxes.
In this second half of the show, Jason Hartman finishes his interview with Ryan Schellhous, as the two continue their look at the new GOP Tax Reform. Ryan points out a few more big changes, as well as several minor ones. Some of them are HUGE for real estate investors, like the accelerated bonus depreciation, while some are mostly targeted at smaller groups (like hedge fund managers).
[3:56] The microtrend Jason's noticed recently
[11:33] A lot of people are prepaying their 2018 property taxes before the end of the year so they can deduct it on their 2017 taxes
[15:25] Holiday retail sales were fantastic
[18:21] Enter at JasonHartman.com/Contest to win tickets to Meet the Masters
Ryan Schellhous Interview:
[20:50] The accelerated bonus depreciation is enormous for real estate investors
[24:21] Changes to the 1031 Exchange rule
[28:25] The carried interest rules have changed as well, impacting the hedge fund managers trading techniques
[30:14] 529 plans (education plans for children) can now be used to pay for private schools
[30:47] Some tax changes that were EXPECTED but didn't end up happening
Wed, 27 December 2017
CW 931 - First Deep Look at GOP Tax Reform, Broad Economic Impact, New & Changed Deductions, Corporate Repatriation of Wealth with Ryan Schellhous
Jason Hartman starts off the show from the bottom of the Grand Canyon discussing the upcoming Meet the Masters event, along with his excitement about the new GOP Tax Reform.
Then Jason talks with Ryan Schellhous, founder at IndigoSpire CPAs & Advisors, about the new tax plan. The two start off with a 30,000 foot overview of the plan, then drill down into specific components of the plan as they figure out who is going to be helped and who may not see as much of a benefit under the plan. Ryan explains the biggest revenue raisers and "losers" under the new bill, and some of the most important pieces that will impact individual filers.
[3:04] The Grand Canyon may actually be more impressive when you look up from the bottom
[5:39] Meet the Masters of Income Property is in 2.5 weeks, featuring Ron Paul
[7:45] Danielle DiMartino-Booth may not be a huge fan of the new tax reform; we'll find out at Meet the Masters
Ryan Schellhous Interview:
[12:58] The 30,000 foot overview of the GOP Tax Reform
[14:53] Will this tax reform create a repatriation of wealth back to the US?
[18:43] The move that mobilized the GOP forces toward tax reform
[20:40] The 2nd most important thing in the tax plan was the widening of tax brackets and lowering of rates for individuals
[22:50] The standard deducation has been increased, which should increase the number of simple 1040s being filed
[25:51] The single largest revenue raiser in the entire bill
[28:04] The change in mortgage interest deductions could cause a dampening in the high end real estate market
[30:33] The Alternative Minimum Tax isn't gone, but it's gone through an overhaul
[32:25] Pass-through businesses are getting a 20% deduction
Mon, 25 December 2017
CW 930 - The Psychology of Real Estate Investing, Get Rid of Your Head Trash About Money with Noah St John, The Power Habits & Afformations
There's a constant dialogue going on in our head that tells us why we can't do something. There's constantly an excuse for our behavior that lets us shift the blame away from ourself and on to other things. Jason Hartman talks with Noah St John about this "head trash" and how we can change our thoughts to better our life.
In this 10th episode, Jason and Noah talk about how you can actively work on your mind to create the reality you desire, both professionally and personally.
[2:30] Alexa, where's Santa Clause?
[3:29] The 5-year plan contest ends December 26, 2017
[5:25] Venture Alliance Mastermind group has been streamlined, the price is reduced, and now has ADD-venture trips
[7:19] The GOP Tax Reform is a great Christmas gift
[9:52] Do deficits matter that much when you have the reserve currency and the largest military ever known to mankind?
Noah St John Interview:
[13:43] What is head trash?
[18:26] Sometimes our own belief systems are what's holding us back
[22:16] How do you go about and actually change your belief to stop holding yourself back?
[24:50] Neuroscientists have identified what's known as the "Habit Loop" that you have to break
[27:18] People rarely realize how powerful they actually are
[31:46] Sometimes even things that are positive (like a good work ethic) can hold us back from where we want to go
[34:39] The difference between affirmation and afformation
[37:46] How you can use afformations in your relationships
"There's no lack of information but there's a DEFINITE lack of implementation"
"If you keep not delegating then pretty much you're going to be stagnating."
Fri, 22 December 2017
This week's Flash Back Friday comes from Episode 626, originally posted in January 2016.
Cozy makes collecting rents and screening tenants accessible from anywhere.
Owning the most historically proven asset class, income property, is getting easier. This new service allows landlords to screen tenants, view credit reports and collect rents from a smartphone or tablet. There are nominal fees built into services like debit card processing and the obtaining of a credit report which are paid for by tenants. Professional property owners now have a one-stop shop for managing their income properties, no matter where they are in the world.
[1:24] The devastating news from the stock market, was it manufactured?
[5:44] Could the government take away the benefits of the most tax favored asset?
[7:37] The entire world economy is 60 trillion in a year and we lost 8 trillion in less than 1 month
[9:58] Let’s print more money because there is no limit
[12:57] Get free powerpoint slides and a reserve your spot for the next JHU event March
Gino Zahnd Guest Interview:
[17:12] What exactly is Cozy and how did it start?
[20:23] A landlord has access to a tenant’s credit report without the chance of identity theft
[22:10] An agent can only use the screening tools or the full-service option
[24:59] Can a landlord can still add an application fee to cover their time spent?
[27:44] Credit reports & background checks have a fee associated with them via Cozy
“We help landlords by eliminating the hassle of rent checks and screening new tenants.”
[29:35] Automated Clearing House (ACH) payments are free between landlord and tenants
[32:07] Cozy eats the cost of transactions in exchange for client satisfaction
[33:26] 2 ways for a landlord to initiate payments
[35:45] Cozy’s goal is to be the best one-stop shop for realizing rent payments
“Landlords will be notified when rent payments are received, removing the need to manually check.”
[39:52] Rental markets are in the U.S. are fragmented and hard to access
[40:50] Cozy is available on your phone or tablet and new services are coming
Thu, 21 December 2017
CW 928 - Rich Dad Advisor Ken McElroy - GOP Tax Plan's Impact on Real Estate Investing, Treating Tenants Properly, & the Myth of Home Ownership, Part 2
Jason Hartman and Ken McElroy finish up their conversation started in episode 927. This time, however, the two look into the importance of how property owners (and managers) treat their tenants, and why many people are doing it wrong. They also discuss why the American idea of home ownership may be a massive myth, and two critical pieces to your investment success.
[3:29] Apple has confirmed a long-held conspiracy
[6:38] Jason believes this tax plan is going to be phenomenal for the economy
[10:49] Some back of the napkin math on the impact of the new tax plan
[15:19] It's been 3 decades since we've had real tax reform, so Jason's bullish
Ken McElroy Interview:
[20:42] It's important to treat all your residents as your customers
[22:08] Is the idea of home ownership a myth?
[24:22] Population growth and migration are two things critical to investment success
[27:41] The state of the states
Wed, 20 December 2017
CW 927 - Rich Dad Advisor Ken McElroy on Property Management, Top Investors Mistakes, and Economic Optimism, Part 1
Jason Hartman starts off the show discussing the recent news that economic optimism under President Trump is nearly unprecedented. He also goes into what to look for when moving, and what "The Wheel of Life" is about.
Then we have part 1 of Jason's interview with Rich Dad Advisor Ken McElroy, who will be speaking at this year's Meet the Masters of Income Property in La Jolla. Ken tells Jason some of the most common mistakes he sees real estate investors make, why you can't just buy real estate any time you like, and some tips on how to do property management the right way.
[3:52] We are at a time of unprecedented economic optimism
[6:11] Why Jason enjoys moving and what to look for when you're moving
[12:25] CNBC video about current levels of economic optimism
[17:34] What The Wheel of Life is about
Ken McElroy Interview:
[24:16] The two common mistakes Ken sees in real estate investors
[26:19] Real estate is cyclical, so you can't just buy all the time throughout your career
[28:41] Ken's real estate business model
[30:20] Some tips on how to do property management right
[33:01] C class properties look good on paper, but in the long run, better quality properties bring better quality tenants
Tue, 19 December 2017
The GOP tax plan is looking like it's going to be going through in the near future, but with a bill this long nobody is 100% sure how it's going to impact their taxes. In the second part of their interview, Jason Hartman talks with Naresh about what Jason's seen in the tax plan that will impact income property investments and why the plan will create upward pressure on rents.
The two also go into censorship in America, from YouTube to Naresh's new book, Trumpbook: How Digital Liberals Silenced A Nation Into Making America Hate Again, which he's been unable to market in traditional outlets that are advertising left leaning books.
And don't forget to do your 5-year plan, record it and upload it by Christmas to enter the contest!
[5:02] This tax plan will be great for real estate investors because it dis-incentivizes buying a home
[8:38] The White House clip on taxation
[12:05] Supply side economics works, it's not a zero sum game
[18:25] The Fed is going to be raising rates six times in the next 2 years, which will be HUGE for real estate investors getting in now
[22:23] The 2 things that could ruin Jason's prediction on interest rates impact
[23:52] Naresh's new book, Trumpbook, is being censored by the mainstream media. Get a free copy by going to www.NareshVissa.com
"Earned income by employment is always the least favorable income you can have in the US."
Mon, 18 December 2017
CW 925 - Portable Society - Bubble Economy, Client Case Study, Sharing Economy, Bitcoin Mania with Naresh
In part one of Jason Hartman's interview with client Naresh, the two discuss what led Naresh to buy his first income properties, why he is now veering away from investing in things like the stock market and cryptocurrencies, and how our portable, sharing economy is changing everything.
Naresh is currently purchasing his second rental property while RENTING his apartment in Florida, something most people would consider the "wrong" decision.
[7:03] How Jason & Naresh first met
[9:33] How the "portable society" impacts you as a real estate investor
[13:01] The world is changing faster than ever before, so we need to throw a lot of our old ideas out of the window
[19:28] We'd all love to get something for nothing, but really we're just gambling
[22:38] An interesting piece of education from Naresh's recent trip to Columbia that shows the value of the dollar
"Nothing is bigger than the American brand, no brand has more value than the United States of America brand"
Fri, 15 December 2017
Say this 10 times real fast, Inflation Induced Debt Destruction, now make it your mantra. Would you like someone else to pay your bills for you? Well when you buy income property it is exactly what happens. Your tenants pay down your debt while your property appreciates. Today, Jason outlines a chart from way back in the Creating Wealth archives. He will make the chart available to all of you listeners soon. The chart introduces the intricacies of inflation. He then takes us through most of the asset classes and how they perform against inflation.
[3:30] 3 Types of markets are linear, cyclical and hybrid
[6:02] Published reports and statistics can’t be trusted
[9:53] Will your kids ever learn to drive a car?
[11:53] A 16 year cyclical market (Orange County, CA) compared to a linear market (Lansing, MI)
[12:50] Commandment #5 - Thou shalt not gamble. The property should make financial sense
[16:58] What time is it? It’s an amazing time to be alive!
[19:50] The Meet the Masters Event is coming up. Garrett Sutton will be there.
[20:33] Asset class top performers
[23:12] Inflation induced debt destruction
[23:59] Waiting, substitution and hidonics make people believe inflation is lower than it is
[24:52] Outsourcing your mortgage debt to tenants, they are paying your debt
[27:33] The problem with the Affordable Care Act aka Obamacare
[30:34] Rental income is governed by housing affordability
[32:00] Stock markets can be manipulated and are medium-low indexed to inflation,
[33:33] Cash & taxes are low strength versus inflation - taxes aren’t calculated for inflation
[38:20] Low information people are clueless about the government
[39:35] Income property investors can turn the tables on the government
[40:39] Join the Venture Alliance Mastermind in Dubai