Creating Wealth Real Estate Investing with Jason Hartman (general)

Today's Flash Back Friday comes from Episode 491, originally published in March 2015.

Jason invites Diane Kennedy on the show to talk about taxes and how to save you money. Diane is an experienced CPA and helps her clients all over the world with their taxes, accounting, and investing. The main subject of today's focus is why you should get real estate professional status, the benefits it provides, and what you need to do in order to qualify. 

Key Takeaways:

2:40 – The government takes a big cut whenever you sell stocks and precious metals, but that doesn't happen with income property

7:40 – Diane explains what the charitable remainder trust is

13:05 – There are three tests you need to qualify in order to get the real estate professional status

20:00 – What is the an aggregation election? Jason explains

29:50 – If you have a property manager, it's going to be hard for you to qualify. It is best in this case to self-manage your properties

34:15 – This stuff is complicated! Get advise from a good CPA and attorney before it's too late

36:00 – Why do you even want to get real estate professional status? Jason breaks it down

42:30 – The government wants you to own property. They are even incentivizing you for it

Website:

www.USTaxAid.com

Direct download: CW_1017_FBF_Diane_Kennedy.mp3
Category:general -- posted at: 1:04pm EDT

Jason Hartman starts off the show by discussing alligators, both real life ones and real estate ones, and how we need to avoid both. As we go through life, it's easy to look back and say "If only I'd invested then", so the current you should invest for the sake of future you.

Then, Jason talks with Ben Way, CEO of Digits, about how the future is going to look in the first part of their interview. The two start off discussing how Digits is going about turning regular credit cards into Cryptocards that allow you to spend your cryptocurrency but also hedge that purchase for a year. Then the two discuss the changes that automation is going to bring to our society.

Key Takeaways:

[2:07] A trivia fact about real alligators, and avoiding real estate alligators

[5:07] The short term trends are what gets people, because you have to allow for 2-3 years

[10:19] Naresh's realization that real estate was a worthy investment

[14:11] Invest for your future because there will be a time that you will say "I wish I'd started back then"

Ben Way Interview, Part 1

[18:40] How Digits converts your existing credit cards into crypto cards and gives you up to a 1 year hedge on your currency

[21:55] How the 1 year hedge is made possible

[26:10] Every innovation leads people to fear that everyone was going to lose their job and be displaced, but it's never really happened. Is this time different?

[29:42] What people forget about automation

Website:

www.JasonHartman.com/Properties

www.RainmakersGlobal.com

Direct download: CW_1016_Ben_Way1.mp3
Category:general -- posted at: 6:19pm EDT

Jason Hartman begins today talking about a recent article on Globe St that discussed the 7 ways Generation Z will impact the commercial real estate world. Jason also discusses how it also impacts residential real estate.

Then Jason finishes his interview with Matthew Gardner, Chief Economist at Windermere Real Estate. The two discuss the lack of home inventory and why the loosening of credit regulations isn't going to impact home sales as much as some are hoping. Then they also delve into millennials trying to afford homes and WHERE they can actually afford to live.

Key Takeaways:

[3:58] Education is the shortest distance between poverty and wealth

[6:56] Generation Z is going to bring the suburbs back

[12:27] What the shift back to suburbs will do to companies

Matthew Gardner Interview:

[16:58] It's taking a credit score of 740 to get a mortgage loan these days, but even if more people become eligible there's no inventory

[20:09] Factors that could trigger the next business cycle recession and what the next recession might look like

[24:27] Who are the "Boomerang Buyers" and how might they impact the single family rental rate growth?

[24:18] Millennials are having a hard time saving up for a down payment and are asking for a loan from the bank of Mom & Dad

[27:04] Milennials want to live in the "exurbs" in townhomes, but home prices are pushing them out further

Website:

7 Ways Generation Z Will Change CRE on GlobeSt.com

www.Windermere.com/Economics

Direct download: CW_1015_Matthew_Gardner2.mp3
Category:general -- posted at: 12:00pm EDT

Today's Flash Back Friday comes from Episode 692, originally published in June 2016.

This episode starts out with an introduction on buy downs and then finishes up with a live recording of Jason’s session on SWOT aka Strengths, Weaknesses, Opportunities, and Threats, as they apply to the most historically proven asset class in the world. Jason explains why the imperfection and fragmentation of the U.S. real estate market make it a beneficial investment vehicle and why it outperforms Wall Street and stocks every single time.

Key Takeaways:

[2:50] What is a buy down?

[8:34] Looking at a real life example of points and how they affect your loan amount.

[16:07] Should you buy a rate down or is it better to put more money down?

[22:59] Why Wimpy from Popeye was a fantastic economic teacher.

[25:38] Real estate is a fragmented investment class but this is why it’s a good thing.

[38:59] Weaknesses of income property include property management and rent collection.

[41:45] Regression to replacement cost is different than appreciation.

[46:10] What are some threats to income property values?

Mentions:

Jason Hartman

Hartman Education

Direct download: CW_1014_FBF_SWOT.mp3
Category:general -- posted at: 12:00pm EDT

Jason Hartman starts off the show giving President Trump credit where credit is due, and that's in regards to the summit in Singapore with North Korea. Trump has been able to get them to the negotiating table, which no other US president has been able to accomplish. Then, Jason gives a little warning about one of the scariest companies in the world today, Facebook.

In the interview portion today we have the first half of Jason's interview with Matthew Gardner, Chief Economist at Windermere Real Estate. The two discuss what's going on in the macro US economy, what's going on with home inventory levels, some of the easiest ways to lower home prices, and the Millennial's (mostly futile) quest to save up for a down payment. Part 2 of the interview will air tomorrow.

Key Takeaways:

[2:31] Give credit where it's due, Trump got the meeting with North Korea, that's historic

[8:45] All the (scary) ways Facebook is gathering your data

Matthew Gardner Interview:

[13:42] What's Matthew's take on what's going on in the macroeconomy

[16:30] What's going on with new home development? Will there be any break in inventory shortgage?

[20:43] The easiest way to lower home costs and ease the inventory crisis is by easing regulatory burdens

[24:18] Millenials are having a hard time saving up for a down payment and are asking for a loan from the bank of Mom & Dad

[27:04] Milennials want to live in the "exurbs" in townhomes, but home prices are pushing them out further

Website:

www.Windermere.com/Economics

Direct download: CW_1013_Matthew_Gardner1.mp3
Category:general -- posted at: 5:53pm EDT

In today's episode, Jason Hartman is joined once again by Financial Survival Network's Kerry Lutz. The two discuss some important news coming out of Washington these days, and that's the continued dismantling of the Dodd-Frank Act. As you know, Jason has long believed that the election of Trump would lead to this, and now it appears to be picking up steam as Obama holdovers are being replaced by Trump's people.

Jason & Kerry also turn their attention to the importance of protecting yourself from identity theft, as identity theft recently left one woman in jail for 7 weeks until she could prove herself innocent.

Key Takeaways:

[4:45] Big data still gets confused

[5:49] How can you protect yourself from identity threats?

[9:03] Your phone is probably your biggest threat for identity theft

[13:15] There are some things you HAVE to know if you're going to self-manage

[15:57] The latest news on Dodd-Frank

[20:42] Changes are taking place under Trump's new appointment Mulvaney

[22:22] Why these changes are good and bad for real estate investors

Websites:

www.JasonHartman.com/Properties

www.FinancialSurvivalNetwork.com

Direct download: CW_1012_Kerry_Lutz.mp3
Category:general -- posted at: 3:22pm EDT

Today's Flash Back Friday comes from Episode 746, originally published in November 2016.

This episode focuses on the opportunities which exist when self-managing an income property. First, Jason reviews a Business Insider article regarding dwindling investment property inventories. And later in the podcast, Jason is joined by Bill, who helps manage Fernando's Atlanta and Texas properties. Bill discusses the steps necessary when self-managing income properties.  He shares how to show a property using software tools, leasing a property to a new tenant and how to have tenants facilitate repairs and maintenance issues.

Key Takeaways:

[3:00] Unpacking the Business Insider Article: Pending Home Sales Jump Despite Painfully Tight Housing Market by Bob Bryan.

[4:08] If you are on the fence about increasing your income property portfolio do it in hybrid markets.  

[7:29] Real estate is a game of staying power.

[18:00] The ways Jason is working to empower his investors and arm with them with exceptional management tools.

[19:26] Bill’s work history makes him uniquely qualified to handle Fernando’s property management requirements.

[22:51] How to use Rently lockboxes when self-managing properties.

[27:14] Making a property rent-ready and contacting contractors through handiman websites.

[28:56] Tenants have a vested interest  when working with contractors to fix or maintain properties.

[31:53] When a property is self-managed tenants to take more responsibility for the property.

[35:42] Property Management Software does most of the back-office work for you.  

[37:12] What is required when leasing a property to a tenant?

Mentioned in This Episode:

Jason Hartman

Venture Alliance

Rently Lockboxes

Appfolio

Direct download: CW_1011_FBF_Bill.mp3
Category:general -- posted at: 12:00pm EDT

Jason Hartman takes some time before this 10th episode interview to discuss the concept of the mini-family office and how you can incorporate VAs (virtual assistants) into the mix. Jason provides a litany of websites where you can find VAs, as well as an insight into what characteristics you need to be looking for. Then there's the monetary side of it: does it make financial sense to hire a VA to do this? Well, you can use the Hartman Property Management Metric to figure that out.

Then Jason talks with Peter Shankman, author of Faster Than Normal: Turbocharge Your Focus, Productivity, and Success with the Secrets of the ADHD Brain, about how people with ADHD can use it to their advantage, what actions people need to take in order to be successful in their ventures, how to figure out what your audience wants, and when to ignore your audience.

Key Takeaways:

[4:32] Using VAs to help with your mini-family office

[9:28] The type of VA you need to be looking for to help you with your family office

[11:17] The Hartman Metric is 1 hour per month per property to manage

[13:52] The urban legend of the 3am phone call

Peter Shankman Interview:

[19:35] How is ADHD a benefit?

[22:01] It's important to set up your life in a way that doesn't allow you to get derailed, and the 4 undeniable ADHD life rules

[25:05] You can lead the life you want, you just have to be willing to make the trade offs

[29:13] Your audience will tell you what they want and where they are, if you're willing to listen

[31:08] The only time you want to ignore what your audience is saying they want is when you're a part of a big market disruptor

Website:

www.ShankMinds.com

www.FasterThanNormal.com

www.REVAS.us

www.HireSmartVAs.com

www.ApartmentLines.com

www.IVAA.org

www.Freelancer.com

www.Upwork.com

www.TaskRabbit.com

Direct download: CW_1010_Peter_Shankman.mp3
Category:general -- posted at: 12:00pm EDT

Jason Hartman talks with Financial Survival Network's founder Kerry Lutz for the whole episode today, as the two discuss the very important concept of financial repression. While financial repression is bad for individuals, it can be very lucrative for people who have invested in real estate properly in their younger years.

The two also discuss the current phenomenon of "tax refugees" being created by states like California, and where these refugees are fleeing too, as well as when they expect any economic pullback to happen and what Trump is doing that the mainstream media isn't paying attention to.

Key Takeaways:

[5:53] Make sure you get a home inspection and make sure you actually read it and learn the language

[9:11] What is financial repression?

[12:59] Financial repression is a great opportunity for those who invest in real estate

[16:35] Tracking the "tax refugees" leaving California

[23:06] What kind of economic outlooks has Kerry been hearing from the guests on the Financial Survival Network?

[27:04] The mainstream media is missing the fact that Trump is now making large chunks of the government irrelevant

Websites:

www.JasonHartman.com/Properties

www.FinancialSurvivalNetwork.com

Direct download: CW_1009_Kerry_Lutz.mp3
Category:general -- posted at: 5:07pm EDT

Today's Flash Back Friday comes from Episode 734, originally published in October 2016.

Jason’s guest, Brian is a client and a longtime Creating Wealth Podcast listener. Brian describes his early days of real estate investing when Sara initially walked him through the buying process. The properties he purchased in Atlanta and Memphis have now matured and Brian is faced with making a decision. Should he refi-til-ya-die or to do a 1031 exchange and get 2 for 1 on his highly appreciated properties. Jason shares his insights on best business practices, how to use an IRA as a tax savings vehicle and recommends some “must read” books on real estate investing.

Key Takeaways:

 

[1:57] Brian read Rich Dad, Poor Dad in high school which led him to the Creating Wealth podcast.

[3:19] Brian was pleased with the support he received from Sara and the Local Market Specialists.

[6:14] Is refi-til-ya-die always the best option or does the 2 for 1 plan make better financial sense on highly appreciated properties?

[9:55] The 2 for 1 exchange gives the owner all of the equity to reinvest. The refi-til-ya-die option is limited to the cash-out loan to value ratio.

[11:10] A refi may be a simpler option and offers a locked-in lower interest rate.

[13:38] Brian shares his real estate investor stories on his website Rental Mindset.

[14:59] When buying real estate inside of an IRA you get a tax efficient vehicle inside of another tax efficient vehicle.

[15:41] Read Garrett Sutton’s Loopholes of Real Estate.

[16:59] Rationalizing buying a property sight unseen.

Mentioned in This Episode:

Jason Hartman

Hartman Education

Rental Mindset

Direct download: CW_1008_FBF_Brian_Case_Study.mp3
Category:general -- posted at: 12:00pm EDT