Fri, 31 August 2018
Today's Flash Back Friday comes from Episode 560, originally published in August 2015.
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.
[4:56] Is this the beginning of the economic meltdown
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
Wed, 29 August 2018
CW 1049 - Is A Recession Coming, Trickle Up Default, Yield Curve, Short-Term Rentals Hawaii Conference & More
Jason Hartman and Doug take today's episode as a chance to look at some key happenings in our world today. By now you've heard Jason discuss how there's a softening in prices at the top of the housing market that is likely to slowly trickle down into other price ranges, but Doug says there's another metric to look at that's also telling us a recession is headed our way.
With stocks on a 10 year run, we know it can't stay this way forever. Jason and Doug look at whether the US investor's propensity to demand immediate gains by companies may be hurting us against our foreign competitors. They also look at the upcoming Profits in Paradise event and what's happening in the short-term rental market.
[2:07] Doug says there's a better sign of an upcoming recession aside from an inverted yield curve
[5:34] Trickle up poverty
[8:46] The rich have resources in the hard times (helping them get richer), the poor get hurt by them
[11:56] We're now on a 10 year run in the stock market, how much longer can we go?
[15:53] Asia's long term view for companies could be a problem for instant gratification that the US is plagued with
[19:14] Long economic expansions makes people forget that counterparty risk is real
[23:49] This housing slowdown is starting at the top and will work its way down
[26:36] What Doug is excited about for Profits in Paradise
[30:48] Where is all the additional demand for hotels and short-term rentals coming from?
[33:04] The best strategy for short-term providers
Mon, 27 August 2018
Today's show features Jason Hartman discussing some of the main stories in the news today. The first story is one of the reasons Jason created Commandment #3 (Thou Shalt Maintain Control), the next is a potential sign of a market slowdown from none other than the scandal plagued Wells Fargo, then the potential return of risky loans. Finally we wrap it up with a story on how California might make it even more expensive to live there.
[2:09] Forgetting Commandment #3 can often be an expensive lesson and the biggest Ponzi scheme in the world
[6:52] Always think of opportunity cost when you have money sitting around
[12:20] A potential sign of a market slowdown from Wells Fargo
[16:49] The housing market is slowing from the top down and hasn't hit the type of homes that Jason's network sells
[20:44] Are banks starting to push risky loans?
[26:07] California is considering changes to Prop 13 and home requirements, which Jason believes would be devastating for real estate holders
Fri, 24 August 2018
CW 1047 FBF - Financing FAQs You Need to Know, Why the World Looks to U.S. Real Estate to Create Their Wealth
Today's Flash Back Friday comes from Episode 571, originally published in September 2015.
Welcome to episode 571 of Creating Wealth Real Estate Investing. If you’re here it’s because you’re interested in creating or growing your wealth through real estate investing. And today’s episode is the perfect vehicle to help you do that.
One of our experts, Joe, joins us to give the down and dirty details of what it takes to get the best financing deal and the specifications you need to qualify for up to 20 properties. We also talk about whether or not you need an attorney to close a loan, the differences between technical refinancing and cash out refinancing as well as how many months’ of reserves you need.
This is expert advice free of charge! And it’s all here on today’s episode of Creating Wealth Real Estate Investing.
Quick answers in the lightning round to all of the most important financing questions. We dig in and ask prudent questions of Joe our financing guru. If you are looking to create your wealth through real estate investments this is the episode for you. Down and dirty details of what it takes to get the best financing deal and the specifications you need to qualify for up to 20 properties. Expert advice free of charge!
[1:23] Lender Lightning Round show
[1:58] The great Facebook debate
[4:29] Commandment #3 - Thou shalt maintain control
[9:28] Ric Edelman’s - 10 great reasons to keep a long term mortgage and never pay it off
[11:07] The supply chain of financial advisors
[15:40] It’s an amazing time to be alive
[16:18] The Chinese Government makes it easier to buy overseas assets
[18:40] Newport Rhode Island trip for Venture Alliance members and guests
[21:30] Inflation induced debt destruction
[22:15] Financing 10 properties per spouse through Fannie Mae
[22:53] Down payments vary - 5% down reduces your rate
[23:43] Financing through an LLC
[24:24] 1 loan, 1 property with vanilla residential financing
[25:45] Multiple inquiries about your credit score can lower it over time
[27:00] A LLC needs different insurance
[27:47] Is a power of attorney be sufficient to close the loan
[28:29] An attorney is not needed to close the loan
[29:57] A 2 year landlord history - Fannie Mae no, Freddie Mac yes
[30:56] The minimum credit score is 620 for the first 4 properties, 720 for 5-10
[31:50] Cash out refinancing on investment properties
[33:05] You can always finance your primary residence but different guidelines may apply
[34:21] Lenders need 6 months of reserves
[35:37] Offsetting the mortgage payment based on possible rental income
[37:42] Rental income loss
[38:38] Technical refinance or delayed financing
[40:22] 100% replacement cost needed in homeowners insurance
[44:37] Do your due diligence but beware of multiple credit checks
Wed, 22 August 2018
Today's episode features Jason Hartman covering a wide range of issues. The topic of conversation ranges from the coming singularity, what it is, when we might see it, etc, then branches into more on the discussion about Automated Valuation Models (AVMs) and whether they're are the precursor to reckless valuations like we saw before the Great Recession.
Jason also looks at the unfortunate situation Venezuela finds them in, with both rampant inflation and a natural disaster on top of it creating serious issues for the citizens of the nation.
And finally Jason listens to some of his favorite investigative journalists work as he discusses why investigative jouralism is important and how it is connected to his 3 guiding principles.
[3:07] The approaching singularity
[7:47] The database Jason was wondering about in relation to Automated Valuation Models exists with Fannie Mae/Freddie Mac
[10:05] Appraisers are a dying industry because the older ones are retiring and the hoops new appraisers have to jump through are hindering new hires
[11:45] Will AVMs cause reckless valuations to return?
[14:11] The IMF has announced that inflation in Venezuela this year alone has been 1,000,000%
[17:07] Asset price inflation is not a part of the inflation index in the USA, which is a big deal
[22:17] The 2 major problems of the humble single family home
[26:11] Investigative journalisms ties to Jason's principles of how you can't hear the dogs that don't bark, compared to what, and what gets rewarded get repeated
Mon, 20 August 2018
Jason Hartman welcomes his mom back to the show to discuss self managing properties and how to find the best deals when you have to make repairs. The two also talk about what kinds of addendum she's adding to leases recently, rising rents, job numbers and more.
[2:12] Small business confidence at 35 year high
[5:38] Job numbers are not showing an impact from the trade wars
[8:14] There's legitimate wage growth for the first time in 4 decades, which is great for all Americans (and our economy)
[10:33] Jason's mom has been able to raise 4 of her tenants rent by $100 a month
[13:03] Have tenants have changed over the years?
[16:10] How his mom gets good deals and aligns the tenants interest with her own
[20:12] "You get what you pay for" is not true for much (if anything) in life
[24:14] The kinds of clauses Jason's mom is putting in her leases to protect herself from unruly tenants
[29:24] How to build a great relationship with your tenants
Fri, 17 August 2018
Today's Flash Back Friday comes from Episode 568, originally published in September 2015.
The sharing economy will certainly change the game in the manufacturing sector but we do not yet know what affect it will have. Considering the normal adaptation lag time and the conversion nuances of each new innovation real estate investors must watch closely as the upcoming game changers come to fruition. Major economic indicators such as unemployment rates and the housing market will be closely monitored. Real estate investing may be entirely different than it is today.
[2:01] How real estate investors can design their portfolios in the current govt. environment
[3:24] 3 Cardinal rules of real estate - Location, location, location
[3:57] What is the labor content fallacy or the zero sum game
[5:11] Proving Supply side economics or trickle down economics
[6:25] Looking at economics by way of technology
[8:09] The self driving cars will hurt high value land owners
[9:06] An audio clip about self driving cars
[10:41] Automotive Industry experts expect an 8 year replacement cycle
[11:28] The average car is used only 4% of the time
[12:45] How will autonomous driving services affect the auto industry
[14:38] A game changer for real estate
[15:33] Naresh is skeptical about the dates
[18:00] The typical city or town is 40% parking
[19:11] Will people need to get in a car and go to work
[21:36] A safety app
[22:34] Will there be high unemployment or will technology fill in the gaps
[25:21] Digital goods basically exhibit a zero cost of production
[28:01] Real estate investors normally don’t consider what the future may hold
[29:25] Jason’s private mastermind group, Venture Alliance’s Newport Rhode Island trip
Wed, 15 August 2018
Today's episode is all Jason Hartman, as he goes through several of the big (real estate) news stories of the day. First there's a new development at the US Department of Housing & Urban Development that could increase housing availability and reduce home values (at least in the short term).
Then listen in as Jason tells the current story of his commercial property refinance and all the bumps (and fees) that come with the arduous process.
Finally we get to the Fed and interest rates. Jason takes a look at some of the Fed's moves from the past, how they have changed their original charter, and what's happening with interest rates because of that.
[3:17] There's a homelessness crisis in many cities around the country
[6:39] The Department of Housing and Urban Development is trying a new tact that may have a slight downward pressure on real estate values
[11:18] HUD is changing the way it determines how communities are enforcing the fair housing act, including relaxing zoning restrictions
[15:51] The adventure that is Jason's apartment re-finance
[21:03] Cyclical markets are cooling but linear markets are still booming
[26:02] The Fed was supposed to be control the quantity of money, but they morphed into being in charge of interest rates
[29:04] A basic reason to raise interest rates
Tue, 14 August 2018
CW 1042 - Rising Inflation, the Future of AVMs & Impact of Short-Term Rentals with Dr Andy Krause, Part 2
Jason Hartman starts today's show off back in the car with Carmen discussing some news he's seen recently. Inflation continues to creep up, apparently into the range that makes Central Banks happy, but Jason wants to know why we even have to see inflation, and explains what impact that will have. He also discusses the changes in America (and the history of marketing) that turned us into a consumer spending economy and the squeeze on American manufacturers currently happening.
Then Jason finishes his interview with Dr. Andy Krause, Principal Data Scientist at Greenfield Advisors and AVM Analytics, as the two wrap up their conversation about Automated Valuation Models (AVM). This time the two discuss the wide range of uses AVMs have, how they're going to be changing moving forward, and how short-term rentals are impacting housing markets across the country.
[5:07] Inflation is rising into the range the Central Bank deems "healthy"
[8:39] America is the land built on consumer spending
[12:36] American manufacturers are running low on parts
Dr. Andy Krause, Part 2
[15:35] What the AVMs do outside of simply valuing individual homes
[17:56] The future of AVMs
[21:15] The effects of the short-term rental market on the overall housing market
Mon, 13 August 2018
CW 1041 - Insider Sign for Housing Market, Labor Shortages & Science Behind Automated Valuation Models with Dr Andy Krause, Part 1
Jason Hartman starts today's episode with Venture Alliance Member Carmen as the two discuss the possibility of "vacation saturation", what the change in repayment of Jason's loans might mean for the housing industry, as well as labor shortages being experienced in the housing sector.
Then we have part 1 of Jason's interview with Dr Andy Krause, Principal Data Scientist at Greenfield Advisors and AVM Analytics, about the state of automated valuation models (AVMs), the potential future for AVMs, how they work, and what practicalities are slowing their development down.
[4:55] Reaching the point of vacation saturation
[10:05] An insiders sign on the direction of the market
[14:35] There is a massive labor shortage in construction and wages are going up
Dr. Andy Krause Interview:
[18:27] The biggest AVM people know about is Zillow
[19:28] The science (and accuracy) behind current AVMs
[22:22] 2 things that are stopping a database from happening that would significantly improve appraisals
[26:52] How does the AVM come up with a value?
Fri, 10 August 2018
CW 1040 FBF - Peter Sage, Money is No Obstacle When You Follow Your Passion with Extreme Entrepreneur
Today's Flash Back Friday comes from Episode 490, originally published in March 2015.
On today's Creating Wealth introduction, Jason invites Memphis and Little Rock market specialist, Jeremy on to the call. Jeremy talks about his interest in physics and what's going on in these two real estate markets right now. Jason invites Peter Sage from Extreme Entrepreneur to be today's Creating Wealth guest. He is a serial entrepreneur who started his first business at 17. Fernando also joins as guest co-host with Jason and the two ask Peter a series of insightful questions. On the show, Peter shares insight as to why he had a drive to become an entrepreneur, how to find your passion, your why, and much, much more on today's episode.
2:30 – Jeremy talks about the double split experiment in physics.
13:20 – What's currently going on in the Memphis and Little Rock market?
18:30 – Jason introduces Peter Sage and Fernando on to the show.
28:30 – Get in touch with what you're passionate about. Ask yourself questions about your life purpose.
39:40 – Why is it that some people struggle to change and others don't? Peter explains.
61:30 – How do we prevent ourselves from falling back into the same old routine?
68:20 – Peter talks about his purpose and his why.
73:20 – Peter talks about his space-based solar power energy project that he started.
78:30 – Pharmaceutical companies are not interested in curing diseases, they only want to maintain them. This current medicine model has to change.
Thu, 9 August 2018
CW 1039 - On Location From the Fed, KC Market Profile & Investing Integrity of the Centimillionaires with Richard Wilson, Part 2
Jason Hartman starts today's episode from the Money Museum, on location at the Kansas City Fed with KC LMS Dave. The two discuss the Kansas City and the Quad Cities rental markets, what you can get for your money in each and what to expect area wise.
Then Jason finishes his interview with family office expert Richard Wilson as the two discuss how much money it takes to make a family office, the importance of integrity in business and investing, and which niche domination can be a good strategy.
[2:58] It only takes 24 minutes to print 10 million new $100 bills
[7:00] What are the Quad Cities and what is the market like there?
[11:23] The types of repairs being done on Dave's properties to make them turnkey
[14:39] The cost of rehabs have gone way up over the past 7-10 years
[16:37] Dave's advice for what type of property is the best for an out of area investor
Richard Wilson Interview:
[21:34] The net worth you need to make a family office worthwhile
[25:20] Niche domination as a strategy
[29:20] If you don't have a focused approach to investments, and don't do things highly intentional, you'll never have synergy
[31:20] You need to have a dashboard and compass as to where you want to go, and it needs to be documented
[33:52] Everything in your life and business needs to have integrity
Wed, 8 August 2018
CW 1038 - Interest Rates, Housing Market Cool Down, & Investing Habits of the Ultra-Wealthy with Richard Wilson, Part 1
Jason Hartman takes some time today to discuss the yield curve and how it's telling us that a slow down might be on the horizon. He goes through the 3 different types of yield curves and the impact all 3 can have on the economy. Negative interest rates are also explained and Inflation Induced Debt Destruction rears its head again as well. Also, don't forget to subscribe to the PropertyCast and get all the new properties first year pro formas straight through your podcast platform!
Then, in part 1 of the interview, Jason Hartman talks with Richard Wilson, a family office expert, about what we can learn about investing by looking at what centimillionaires are doing.
[4:29] What's going on with the yield curve?
[9:38] Some back of the napkin calculations on negative interest rates
[14:28] The 3 different types of yield curves
[18:14] Signs of a turn showing in Orange County
[21:59] When the market cools the service providers will become a little more grateful and conscientous
Richard Wilson, Part 1
[25:15] Some of the business practices used by centimillionaires
[28:58] What a family office really is, and why it's a thing
Mon, 6 August 2018
Today's episode is about one short, simple, beautiful word: DEBT. Fresh off reading/listening to George Graeber's Debt: The First 5,000 Years, Jason delves into the subject matter head first, playing some clips from the book and discussing them in regards to today's world.
[4:34] The recent history of the rotation of the worst big bank in America, Wells Fargo is currently in the lead and had a computer glitch make hundreds lose their homes
[10:06] Why the housing market is actually different this time around
[15:10] Some samples from Debt: The First 5,000 Years
[25:45] It's incredible how throughout history, conquering nations make money by going in, making "improvements" and forcing the newly conquered people to pay for them, or by making them pay back the money the conquering nation spent defeating them
[30:05] The 60s and 70s featured a time where America was prosperous and people were getting cost of living raises and , followed by decades of stagnant wages until Donald Trump
Fri, 3 August 2018
Today's Flash Back Friday comes from Episode 598, originally published in November 2015.
Self-management tools often boast ease of use and shortcuts to save you time but don’t always deliver. Cozy and Landlordology are property management tools which offer end to end online self-management solutions. Both tenants and property managers benefit from the monthly automatic rent collection feature as well as the integrated application process. If you think doing a background check along with a credit report will help qualify renters qualifications then sign up for Cozy today.
[1:20] What time is it? It's an amazing time to be alive
[2:44] Income investment strength versus deflation
[5:00] Deferring your tax liability
[7:02] Inflation induced debt destruction
[9:03] Debt transfers wealth from the lenders to the borrowers in an inflationary environment
[10:33] What gets rewarded, gets repeated
[10:57] Deflation makes debt more burdensome
[13:40] Use the voicemail feature at Jasonhartman.com for your questions
[14:09] Sign up for the Meet the Masters event in Dubai
Lucas Hall Guest Interview:
[16:27] Lucas teaches managers how to manage their own properties
[18:23] You need to get your message out there - try postlets
[19:56] Hire a real estate photographer for great photos of your property
[24:44] Going over your general requirements before meeting at the property will save time
[26:04] A 2-year lease provides extra security for the tenant
[27:34] What is a landlord’s open house?
[29:28] Possible new tenants can submit an application as soon as they leave the property viewing
[31:20] Cozy is an end to end property management platform
[35:09] Rent collection can be difficult for property managers
[40:47] Property managers can garnish wages to collect back rent
[41:51] Automating your rent collection will make it easier for owner and tenant
[42:39] Resources are available on Landlordology.com
Thu, 2 August 2018
CW 1035 - Client Case Study: Dealing with Repairs, Property Management Software & Late Fees with Adam Schroeder, Part 2
Jason Hartman starts off today's episode with a tale of his current lawsuit and the experience it's given him with the legal system. The way our current system is set up nobody wins, and there doesn't seem to be a lot of accountability going on either.
Jason also plays some Voxer messages from client Drew Baker about his recent experiences doing self management. After that Jason finishes up his interview with podcast producer Adam Schroeder. This time the two discuss finding repair people, what to expect from property management software, whether to allow grace periods and what kind of late fees to charge.
[1:57] Nobody wins in our current legal system
[6:04] Get the latest properties available from Jason through the PropertyCast
[7:38] Drew's experience self managing
Adam Schroeder Interview:
[13:32] You should have a clause in the lease stating which repairs the tenant is responsible for
[17:58] What to expect from property management software
[22:01] The importance of an increasing late fee
Wed, 1 August 2018
CW 1034 - Client Case Study: Preparing for Self Management with Adam Schroeder, Part 1 & Why You Should Like a Good Recession
Returning guest Adam Schroeder joins Jason Hartman for this episode, as the two discuss the steps for transitioning from professional management of rental properties to self management. Adam and his wife have 3 (going on 4) properties and are thinking that the time is soon coming to venture out on their own. But before doing that there are some important things to do like what information to get from your property manager, what kind of initial contact to have with the current tenant, finding forms and contracts when you're finding/reupping tenants, pet rent, and more.
[3:36] Why Jason loves a good recession
[8:29] Jason's been involved in around 10,000 real estate transactions
[13:08] Sometimes removing a property manager actually makes things easier
[16:27] The information you need to get from your current property manager if you're going to make a switch
[21:26] A way to change your relationship with your property manager rather than completely ending it
[24:09] Bad property manager reviews on sites like Yelp might be a good thing, that's why you have to read them
[29:23] Insurance: individual policies or a commercial policy?