Mon, 30 July 2018
CW 1033 - European Socialism Disaster, Debunking Utopia & Scandinavian Unexceptionalism with Dr Nima Sanandaji, Part 2
Jason Hartman starts today's episode from Germany, on his way back to the land of capitalism, and he couldn't be happier. After nearly a month in Europe seeing the effects of socialism, Jason's ready to get back to the land where people are more motivated and innovation is more apparent. When governments get involved in picking the winners and losers, nothing good comes out of it, and Jason wants to see America avoid the fate of Europe.
Then Jason finishes his interview with Dr. Nima Sanandaji, originally begun in episode 1028. The two wrap up the interview discussing where the ideas for Adam Smith's "Invisible Hand" really came from, how the Nordic society actually ended up being socialist (and why it doesn't work in the places it's being tried now), and the dangers of government growth.
[2:48] Things in Europe are smaller and not as good of quality. We shouldn't become more like Europe, Europe should become more like the USA
[5:54] The government needs to get out of the business of picking winners and losers
Dr Nima Sanandaji Interview:
[8:20] Adam Smith's "Invisible hand" had been described in China and the Middle East thousands of years earlier
[11:36] Capitalism: the most successful "religion" of all time?
[14:56] The poor immigrants who left the Nordics for America have descendants that are much better off than those who stayed
[18:55] Governments can't shrink down. Once they bloat they collapse under their own weight
[21:57] The Western world needs to learn from history and go back to free market economic policies with minimal government
Fri, 27 July 2018
CW 1032 FBF – What Central Banks Do To Real Estate Investors & Aligning Investments With The Fed, The Creature From Jekyll Island
Today's Flash Back Friday comes from Episode 653, originally published in March 2016.
Jason’s mom will be attending the upcoming Venture Alliance Mastermind trip to Jekyll Island. She decided to prepare herself by reading the updated version of The Creature from Jekyll Island again. She and Jason review sections of the book and discuss the insanity which is the Federal Reserve and how the entity came to be. You are invited to join Jason and his mother on the Jekyll Island trip as a Venture Alliance member or as a guest. If you attend you will experience a piece of American financial history and possibly have your coffee disturbed by a famous hotel ghost.
[3:47] Jason’s mother’s assessment of the book “The Creature From Jekyll Island” and the history of the Federal Reserve.
[12:27] The ghosts of the Jekyll Island hotel do more than drink the guests coffee, they pick pockets too.
[18:28] Past podcasts guests, Chris Martenson and Bill Bonner agree, the Federal Reserve system is convoluted.
[22:38] We all easily pay 60% or more of our income to some sort of tax.
[32:36] Listeners must see the 99 Homes, The Big Short and Life and Debt documentaries.
[34:11] The government can tax people through taxes or inflation, which is the hidden tax.
[40:06] When you invest in income property you align yourself with the Federal Reserve.
Wed, 25 July 2018
CW 1031 - Increasing Time on Market, Increasing Inventory & Landlord/Tenant Relationships with Pat Parry
Jason Hartman talks with Patrick Parry, Orange County realtor & former investment counselor, about what signs Pat is seeing in the Orange County market that give him pause when it comes to the housing market. Days on market have escalated (some rather significantly) in every price bracket, and inventory continues to increase.
The two also discuss commercial real estate, and how it's a totally different game (with significantly less room for error) than residential real estate.
[5:17] Signs the housing market is cooling?
[7:29] Time on market has doubled as inventory increases
[13:42] The difference in the landlord/tenant relationship of residential vs commercial real estate
[18:58] Jason has been flat out lied to by commercial landlords
[21:14] You do not have protections in the commercial real estate world, you better have good lawyers and great research
[23:25] Commercial investors have a very high tolerance for loss due to vacancy
[29:07] The increase in home days on market based on sales price
[33:01] People are always looking in the rear view mirror when it comes to markets, except sellers, they're often banking on the greater fool theory when they price their wares
Mon, 23 July 2018
In today's intro Jason Hartman looks at a few signs in the real estate market that aren't so rosey, as well as adjusting the Brady Bunch house for inflation and seeing how real estate holds up against it (and why linear markets are the better bet for steady appreciation).
Then, in today's 10th episode, Jason talks with Dr. Robert Whaples, Professor and Chair in the Department of Economics, Wake Forest University and co-editor and managing editor of The Independent Review. The two discuss the current Pope's world view and the nature of the Catholic church today.
[2:21] Are there signs of upcoming trouble? There's definitely been a slow down in the higher end markets
[6:11] The Brady Bunch house is for sale, what's it selling for (and compared to what)?
[10:14] Linear markets give you more consistent appreciation than cyclical markets
Dr Robert Whaples Interview:
[14:17] What is Pope Francis' world view?
[18:42] How the economy is connected to the environment in the Pope's world view
[24:21] Do we need environmental regulations and taxes?
[26:08] Have we just exported our pollution?
[31:24] Where does the Catholic church come in on the uneven playing fields of markets and oligarchies
Fri, 20 July 2018
Today's Flash Back Friday comes from Episode 665, originally published in April 2016.
Just last year Greg Saylor was a corporate software engineer looking for a reliable investment strategy. He found the Creating Wealth podcast and listened during his long commute. He decided to pick up the phone and call one of Jason’s investment specialists. It’s now six months later and Greg has six income properties earning him $4000.00 in monthly income. His due diligence partnered with the extensive data resources available on JasonHartman.com have allowed him to get a step closer to financial freedom.
[4:01] What is your motivator? Do you expend more energy to conserve than to gain?
[12:39] Hartman Education is having a big 2-week sale!
Greg Saylor Guest Interview:
[18:57] Was it the Creating Wealth podcast that got Greg interested in real estate investing?
[26:29] The acquiring of the properties had the most components, everything else is pretty straightforward.
[27:49] Greg shares the details his first income property deal including the flaws.
[35:53] A certain percentage of risk is acceptable as long as you have a solid portfolio.
[40:06] Property taxes are one factor which is that varies greatly from market to market.
[45:18] Some rules for new investors to follow are to plan for additional expenses, be conservative on your numbers and have a reserve fund.
[48:07] The debt to income ratio is an important factor in financing.
Wed, 18 July 2018
Jason Hartman starts today's episode from Naples, discussing how, despite what you may think, the demise of America is greatly overstated when you start asking the question "Compared to what?". He also brings a morsel of hope to real estate investors, as housing inventory is showing signs of increasing and home owner equity is at an all time high (but fewer owners than ever are stripping that equity).
Then, in part 1 of the interview, Jason talks with Dr Nima Sanandaji, author of the new book The Birthplace of Capitalism - The Middle East, about how capitalism originally began in what is now Iran and Syria, and how the golden age of the Middle East was during the times of capitalism.
[1:46] Think the US is in decline? Well, compared to what? Because Europe isn't doing that great either
[7:41] Keep everything in perspective when you think your problems are huge
[13:00] Inventory could increase a bit in the near future
[16:03] Home owners have an estimated $5.8 trillion in accessible home equity, but fewer are taking cash than in previous eras
Dr Nima Sanandaji Interview:
[19:16] Birthplace of capitalism (the original form) was in what is now Iraq and Syria
[22:36] The golden ages of human civilization in China and India was driven by capitalism
[26:33] The ancient Persians were very free market oriented
[29:52] The irrigation for the Middle East was paid for by farm collectives, not the government, spurred on by strong private property rights
[33:27] Cyrus the Great believed the government's only role was to maintain private property and voluntary contract
Mon, 16 July 2018
Jason Hartman is joined by Venture Alliance member Carmen today in Naples, as the two discuss the importance of music on society (and why it might be more important than monetary control), why complaining is actually important, and some good book recommendations for those interested in learning more about the economy and real estate.
Jason also explores the current single family rental demand and what the demographics are looking like for the next 10 years.
[2:50] North Korea is sitting on $6 trillion of mineral assets
[8:07] Give Jason control of the music and he cares not who controls the money or makes the laws
[11:46] You have to be a complainer when people wrong you
[15:31] Some good books Jason recommends
[20:44] No place on Earth or time in history has big, intrusive, high tax, government burden made life better for citizens
[25:02] Single family demand: 57% of renters are renting single family houses
Fri, 13 July 2018
CW 1026 FBF - The Empowered Investor, Automated Self-Management Technology from Key Please Divyesh Panchal
Today's Flash Back Friday comes from Episode 785, originally published in January 2017.
During today’s episode, Jason shares his appreciation for the ability to self-manage rental properties and the dis-intermediation of single family home sales. The Chief Product Officer for Key Please, Adam Lorentzen joins Jason to describe the sought after service of landlord free, self-showings of rental properties. The Key Please business model focuses on automating the self-management process for owners as well as making the process as easy as possible for renters.
[1:34] Self-managing a property from a distance is possible
[4:16] Wall Street Journal article “Blackstone Wins Fannie’s Backing for Rental Home Debt”
[7:20] President Trump has a lot of energy and will be good for the American economy
[11:21] We will soon see the easing of landlord problems
Adam Lorentzen Guest Interview
[16:05] Key Please helps owners automatically self-manage their properties with 3 tools
[21:33] Adam is surprised by the number of users embracing the Key Please service
[23:42] Adam describes the process for the renter and the property owner
[29:10] The simple hardware has a deeper level of security than wifi or cell-based systems
[31:56] People who view the properties can provide anonymous feedback
[33:20] This service is for property owners who want flexibility in how they manage their properties
[36:51] Key Please wants to assist small property owners and renters in the near future
Wed, 11 July 2018
CW 1025 - Doing Capitalism in the Innovation Economy, Reconfiguring the Three-Player Game between Markets, Speculators & the State with Bill Janeway
Jason Hartman starts off the show from Croatia discussing the difference in investing when there are private companies involved versus when the government is involved. With private companies you know what you're going to get, they're going to follow supply & demand and try to maximize profits. With governments, however, they're much more of a wild card, which can make successfully investing more difficult.
Then Jason talks with Bill Janeway, an active venture capitalist, director of Magnet Systems and O'Reilly Media, Chairman of the Board of Trustees of Cambridge in America, and author of the recently revised and updated book Doing Capitalism in the Innovation Economy. The two discuss the 3 player game and the government's role on both the supply and demand side of the market, the digital revolution and the coming green revolution.
[2:53] You can predict what private companies will do pretty easily, the government is a wild card
[6:39] An invitation to Profits in Paradise in Hawaii
Bill Janeway Interview:
[9:32] How the thesis of the 3 player game came about
[13:29] There are markets that need government pushing the supply side of things for driving innovation, but sometimes the government even needs to be on the demand side, adding income to support the economy
[17:22] If the government hadn't jumped in on the demand side in the 2009 recession history has shown us what would have happened
[19:26] Wherever there's a market for assets there will be bubbles
[25:10] Why the digital revolution made Bill extend his book
[32:09] We've got a new challenge, a new technological revolution, which is the need for a new, green revolution
Mon, 9 July 2018
Jason Hartman does episode 1024 from the bow of a yacht outside of Croatia with Venture Alliance member Carmen. The two discuss inflation's impact on everything from our savings to our real estate, how to deal with trolls in business (and the lawsuits that inevitably follow), and the need for a side hustle.
In the second half of the show Carmen and Jason discuss her Amazon business, which includes how Carmen sources product, the trials of selling on Amazon, and how your business should evolve over time to stay relevant.
[6:13] Inflation destroys the value of our savings, but thankfully it also destroys our (real estate) debt too
[9:41] Technology is making office and retail real estate almost irrelevant
[12:44] Why Jason let someone not pay him on a note for 11 years
[16:10] Are patents even worth it these days with the speed of the world?
[20:58] Life is messy, it's how you handle it that's important. Stay away from the get rich quick stuff.
[25:15] Get a side hustle if for no other reason than to have more tax writeofffs
[31:28] You have to evolve with your business
[36:41] Outlets like Amazon have allowed control of the marketplace to leave board rooms and let individuals call the shots
Fri, 6 July 2018
CW 1023 FBF - Patrick Donohoe - What's NEXT for REI & The Economy, Perpetual Wealth, Infinite Banking & More
Today's Flash Back Friday comes from Episode 783, originally published in January 2017.
Jason’s guest, Patrick Donohoe is the CEO of Paradigm Life. Paradigm Life is an insurance-based financial services company. Patrick shares his thoughts on the recent political changes and how the U.S. economy will be affected, he shares his thoughts on the new administration with a high-level worldview and he recalls his recent experience at the Meet the Masters of Income Property event in California.
[3:05] The caliber of people at the Meet the Masters of Income Property event was a high point
[5:52] Foxconn will bring manufacturing back to the U.S. due to Trump’s business savvy
[12:28] Patrick doesn’t believe charity to foreign nations is in the best interest of the U.S.
[16:23] It will be fascinating to see how Trump deals with the past, present and future
[20:49] Trump will inject adrenaline into the U.S. economy
[23:50] Paradigm Life is an insurance-based financial services company
[28:18] A stock market rally is a short-lived business cycle
[30:51] Patrick describes how he makes the right investment and performs due diligence when acquiring properties.
Wed, 4 July 2018
Jason Hartman takes a turn to the listener mailbag while talking with Kerry Lutz, founder of the Financial Survival Network. Today's topics run the gamut from when to rent your personal residence, how RV ratios work around the world, how to work with Jason, and how to get OUT of the real estate game as you get older.
[2:41] Why Jason has long believed the idea of public unions is ridiculous
[6:27] The stigma between renters and home owners seems to be disappearing, if not already completely gone
[9:54] Mason's question on renting his primary residence
[18:42] RV Ratios apply world wide
[19:23] How is depreciation unwound?
[24:58] Is it wise to put 100% down on a property if you have the cash?
Mon, 2 July 2018
CW 1021 - Prepare for the Next Recession, Strategic Defaults, Leveraging Debt Properly with Kerry Lutz
Jason Hartman spends the episode talking with Kerry Lutz, founder of the Financial Survival Network, as the two discuss the ever important issue of preparing for the NEXT recession (because we all know there's going to be one eventually). The two discuss the importance of using debt prudently, how the banks were active participants in the mortgage meltdown, how to find true asset prices, and more.
[7:45] Planning for the next recession
[13:06] We are in a boom economy, so what do we need to be reminded to watch out for?
[16:59] Check your home insurance renewals carefully
[24:13] Debt is your friend, and if managed properly it always offers options
[28:24] The banks are active participants, not victims, in these mortgage meltdowns and recessions
[34:21] If the lending dried up in any asset class the price would adjust to the real market value