Creating Wealth Real Estate Investing with Jason Hartman (general)

Jason Hartman and economist Thomas open today's show discussing some less talked about aspects of the 1031 exchange. This conversation focuses on how you can incorporate personal property in your exchange and the deadlines the IRS imposes when you're doing your exchange.

Then Jason talks with Rich Dad Advisor and multifamily property investor Ken McElroy about his recent sale of $300 million worth of property, as well as supply levels of multifamily properties, why Ken is still bullish on real estate and the future of interest rates.

Key Takeaways:

[6:25] How to lump personal property into your 1031 exchange

[8:04] IRS time deadlines for 1031 exchanges

Ken McElroy Interview:

[12:45] Why did Ken choose this time to sell his properties and how did he do it?

[17:05] Cap Rate fails to take appreciation into account

[19:01] Is there an oversupply of multifamily that's causing rents to not grow as quickly?

[23:06] What Ken has learned about his facilities for the 55+ community

[24:54] Why Ken is still bullish on real estate

[28:38] Capital always looks for safety in the US

[32:21] The impact things like ride sharing and autonomous cars are having (and will have) on real estate

[35:04] Ken's take on the future of interest rates


Direct download: CW_1167_Ken_McElroy.mp3
Category:general -- posted at: 5:00pm EDT

Today's Flash Back Friday comes from Episode 407, originally published in September 2014.

Matt Theriault is is an entrepreneur, author and success coach who shows people how to start over and begin a new life setting goals and objectives so they can create wealth and live life to the fullest. Matt is the founder and host of the Do Over podcasts. 


Direct download: CW_1166_FBF_Matt_Theriault.mp3
Category:general -- posted at: 5:00pm EDT

Jason Hartman begins today's show discussing where the real growth in wages is happening. Fortunately it's happening in the "real" economy, meaning those jobs that are involved in creating the widgets that we use. That sort of data really helps the linear rental markets that we're investing in. He also provides some economic data that's been released recently.

Then Jason talks with Jeff Ferry, Chief Economist at the Coalition for a Prosperous America, about what's going on with the US trade war. Jeff has some ideas on how to close the gap between the US and the rest of the world, but Jason has some questions about whether they would cause inflation. They also look into America's manufacturing sector and why we need to ramp it back up.

Key Takeaways:

[2:52] People with no college degree are seeing their wages climb faster than people with college degrees

[6:21] When you have a strong manufacturing base in a real estate market, you have stability

[11:33] The economy has to be made up of many different players, and none of them are unimportant

[15:45] Consumer confidence slipped for the 4th time in 5 months and housing starts fell 8%

Jeff Ferry Interview:

[19:35] Jeff's thoughts on the current trade situation

[23:51] One of Jeff's solutions for helping cure the trade imbalance is to reduce the value of the dollar

[27:45] How would devaluing the US economy impact our purchasing goods from other countries and how would it impact the economy at home?

[30:57] You have to have capital formation for a society to create wealth


Direct download: CW_1165_Jeff_Ferry.mp3
Category:general -- posted at: 5:00pm EDT

Jason Hartman and his in-house economist Thomas begin today's show by looking at how the tax reform is impacting home ownership across the country. Deductions that use to be highly favorable to many families have now become not as useful as the standard deduction was nearly doubled under the new law. This could cause some people to view purchasing a primary residence a bit differently.

Then Jason talks with Blake Harris, NY Times best selling author of the new book The History of the Future: Oculus, Facebook & the Revolution That Swept Virtual Reality, about the impact technology is having on our lives and how virtual reality can (and currently can't) fit into them as well. The two examine who the leaders are on the VR front, what price point you're currently looking at versus how much it may cost in the future and more.

Key Takeaways:

[6:12] When the government disincentivizes home ownership, investors win

[10:38] Some quick and simple math about how changes in the tax law is making some families lose deductions

Blake Harris Interview:

[14:29] Is the Virtual Reality revolution over before it's even really begun?

[17:25] How technology could change the way we look at properties

[20:56] What is "affordable" for virtual reality equipment?

[22:38] Oculus is the clear leader for now, but who's coming behind them?

[26:55] How virtual reality can be used in a social context

[30:52] How much farther can virtual reality drive the retail apocalypse?


Direct download: CW_1164_Blake_Harris.mp3
Category:general -- posted at: 5:00pm EDT

Jason Hartman and Adam tackle several issues in today's episode, including the potential of Fannie Mae and Freddie Mac returning to a private company, why it can be dangerous to invest in condos and why Jason would allow a lender from Wells Fargo to come to his events. Hear about this and several other current events of the day, as well as the April edition of the mortgage update. Adam interviews Joe the Lender and found out what investors can expect for their loans, the reserves you need to buy homes and more.

Key Takeaways:

[3:06] Trump has signed a memo to consider ending the government conservatorship of Fannie and Freddie and allow them to return to private companies

[7:59] You can be self-reliant and not like government handouts, and think philosophically that things are wrong, but in practice sometimes you should take advantage of the situation

[11:19] Why Jason doesn't like investing in condos

[15:40] Jason's journey on The Goodyear Blimp

[19:06] Why Jason allowed a Wells Fargo lender to come to his events recently

[21:38] "Kneejerk Capitalism"

Adam's April Mortgage Update:

[23:59] What rate can investors be expecting in today's market?

[29:13] Reserves needed when seeking a Fannie or Freddie backed mortgage


Direct download: CW_1163_Mortgage_Update.mp3
Category:general -- posted at: 5:00pm EDT

Jason Hartman talks today with Frank Gallinelli, founder and President of Real Data and author of the book What Every Real Estate Investor Needs to Know About Cash Flow & 36 Other Key Financial Measures, about what metrics Frank finds the most important for single family home investors to pay attention to. They also discuss the "holy grail" metric that investors should be using and when you actually SHOULDN'T invest in real estate.

Key Takeaways:

[4:30] One of the costliest mistakes Jason has made in his life

Frank Gallinelli Interview:

[6:23] What are the core metrics that real estate investors should be looking at?

[11:09] You should try and forecast best case, worst case, and in-between case for your properties

[12:32] What is discounted cash flow?

[15:07] The holy grail metric is still IRR (Internal Rate of Return)

[16:56] A different way to view Return on Equity

[20:29] Is there a time where it doesn't make sense to acquire properties?

[26:14] Education is absolutely vital to being a good investor


Direct download: CW_1162_Frank_Gallinelli.mp3
Category:general -- posted at: 5:00pm EDT

Today's Flash Back Friday comes from Episode 387, originally published in July 2014.

Robert Kiyosaki is the acclaimed author of Rich Dad Poor Dad. The Rich Dad Company has made Rich Dad Scams: 8 Financial Scams Disguised as Wisdom available for free eBook download, so Kiyosaki talks in detail about scams everyone needs to understand.

Kiyosaki discusses the fundamental challenges with the traditional school system and how corporate America kills the entrepreneurial genius of many bright workers.

He also explains how much money one should have in their bank account.


Direct download: CW_1161_FBF_Robert_Kiyosaki.mp3
Category:general -- posted at: 5:00pm EDT

Jason Hartman starts today's show with a bit of a rant. We're in a world where many "gurus" are just sales people who bring you in, promise you the world, then hand you off to low paid people who simply read a script to you. We have to demand better than that.

Then Jason talks with Jeremy Heimans, co-founder and CEO of Purpose and author of New Power: How Power Works in Our Hyperconnected World - and How to Make It Work for You, about how movements are started in today's world, why you're seeing power concentrated more and more, and getting more buy in from your audience.

Key Takeaways:

[3:20] People don't want to be processed

[6:40] One of the best, weird compliments Jason's ever received from one of his clients

[8:28] Plan your vacations with Jason, next event is coming up in May

Jeremy Heimans Interview:

[12:46] Old power vs new power

[17:34] How do you start a movement?

[24:44] We're seeing more and more concentrations of power even when we thought it was decentralized

[29:04] How much equity are companies giving to their supporters?


Direct download: CW_1160_Jeremy_Heimans.mp3
Category:general -- posted at: 5:47pm EDT

Jason Hartman starts the episode off with his in-house economist Thomas and the two discuss various parts of a mortgage payment and how each interacts with the other. They also compare whether a 15 or 30 year mortgage makes sense in an inflation or deflationary environment.

Then Jason speaks with a new LMS who is offering properties in the central PA area, including York. The LMS explains what markets are supporting the local economy, general tenant profiles, rehab practices and property types that are available.

Key Takeaways:

[2:01] What makes up a mortgage payment?

[5:39] Even with a slightly higher interest rate, Jason believes the 30 year fixed rate still beats the 15 year.

Market Profile:

[7:18] Why is South Central, PA a good place to invest?

[10:08] The target tenant for the market and what employers are supporting the economy

[14:30] How transportation fuels the network of the area

[16:18] The target property and renovations done

[21:00] The rehab process

[29:56] Looking for the catch in the market, whether it be Section 8, insurance or property taxes


Direct download: CW_1159_York.mp3
Category:general -- posted at: 5:00pm EDT

Jason Hartman wraps up day 2, Sunday, from Meet the Masters. With one visitor travelling 22 hours from Australia and nearly 100 people streaming online, the event was a massive success. Listen in as we hear some live clips from Jason, home inspectors, George Gilder from Life After Google, Mani from 2,000 Books, Drew Baker on self-management and more.


Direct download: CW_1158_MTM_2.mp3
Category:general -- posted at: 6:04pm EDT