Creating Wealth Real Estate Investing with Jason Hartman (general)

Jason's mother, Joyce, reads a book a week and has some interesting questions for Jason about the book she's currently reading entitled The Death of Money by James Rickards. Jason and Joyce talk about China's economy, the one child policy, and they also touch on why the US government loves inflation. 

 

Key Takeaways:

3:40 – Joyce is currently reading The Death of Money by James Rickards. 

6:30 – If you believe in Earth Day, why don't you move to North Korea? 

9:55 – Corruption happens everywhere, both in the US and in China. 

15:15 – China just doesn't have enough money. 

23:50 – It's silly that the US government doesn't include food and energy in their inflation stats. 

28:10 – What does all of this have to do with income property? 

35:30 – People say that the US is no longer going to be the leading reserve currency in the ten years. Jason doesn't think that's true. 

40:10 – Jason thinks his mother should start her own podcast. 

 

Mentioned In This Episode: 

The Death of Money by James Rickards

The Bet by Paul Sabin

 

 Smaller, Faster, Lighter, Denser, Cheaper by Robert Bryce.

Direct download: CW_509.mp3
Category:general -- posted at: 9:37pm EST

Jason would like to remind his audience that the Memphis property tour is coming up and there's still a few seats left. Jason invites Brad, a market specialist for the Jackson, Mississippi market to give an extensive market profile on the area and why it's a good time to invest there. 

 

Key Takeaways:

2:40 – There will be a Venture Alliance mastermind meeting in San Diego. 

4:25 – For the mastermind meeting in June, you can come as a guest to get a feel for it. 

5:35 – Jason welcomes Brad. 

9:20 – Brad sold some of his properties in 2005 and regrets it. 

15:40 – You can buy a house in Jackson for $50k and have it rent for $750. 

18:10 – Brad shares his thoughts on section 8 tenants. 

21:40 – Brad lists some key things he likes about Jackson. 

29:10 – There will always be people who will have a renter mentality and not purchase a home. 

 

Mentioned In This Episode:

JasonHartman.com

 

VentureAlliancemastermind.com

Direct download: CW_508.mp3
Category:general -- posted at: 9:17pm EST

Jason Hartman starts this episode with an update on and new fixed-rate mortgage financing program for IRA investors and foreign nationals. In addition, you’ll hear about a change the RSS feed for this podcast in hopes that the change will be seamless and you won’t even notice it; however, you know how technology goes sometimes. You’ll get an overview of a few properties, a few thoughts on the greater Atlanta, Georgia real estate market and an update on Jason’s “Meet The Masters of Income Property Investing” event slated for October at The Hyatt Regency in Irvine, California visit: http://www.jasonhartman.com/meet-the-masters-of-income-property-investing/for complete details.

The main focus of this episode of The Creating Wealth Show will be: Defending Against The Demons of Investing.

The world of investing involves many considerations. Chief among these are the two “Demons” of investing that must both be defeated in order to realize success. The first demon is risk, and the second is inflation. Risk comes from the fact that future returns are uncertain, and it is not possible to foresee all future events. Investments that seem ‘safe’ may turn out to have hidden dangers that we did not notice. Risk can never be eliminated, it can only be managed. The best way to do this is by properly diversifying your investments so that they are not all subject to the same market shocks. The second demon of investing is inflation. Inflation is especially difficult because it erodes the value of your dollars. Defeating the demon of inflation requires investment in multi-dimensional assets that are optimized to defeat inflation. Income properties meet this criteria well because the property itself holds real value by nature of the replacement cost of the structure, the loan allows you to have a fixed cost of capital for three decades, and the cash flow is pushed up by inflation while you cost structure remains flat because of the fixed-rate financing.

Direct download: CW_507_FBF.mp3
Category:general -- posted at: 10:39am EST

Jason invites Fernando on to the show and answers a couple of his questions on lease renewal. Dan Mitchell is also today's Creating Wealth guest. Dan is a senior fellow at the Cato Institute and talks about high corporate taxes, the fiscal policy, and recommendations on how a country's economy can grow instead of collapse. 

 

Key Takeaways:

1:40 – Fernando shares his opinion on the mastermind group he and Jason are currently attending. 

5:50 – Fernando has two questions about upcoming property renewals and wants to pick Jason's brain on what he should do. 

15:20 – Jason introduces Dan Mitchell. 

20:05 – Taxing US citizens world wide is a nightmare. 

26:05 – The US understands that it can't go down the same route as failing economies like Greece. 

33:58 – We can no longer view the government as a sugar daddy. 

 

Mentioned In This Episode:

https://www.rentometer.com

cato.org

 

https://danieljmitchell.wordpress.com/

Direct download: CW_506.mp3
Category:general -- posted at: 8:15pm EST

Jason starts by talking about the Millennial demographic and its benefits for real estate investors. In relation to this, he reads an article on the renter market and why fewer people are purchasing homes. He also takes the time to answer a couple of listener questions about home-owner risk mitigation and renting versus owning property on today's show. 

 

Key Takeaways:

2:00 – Millennials have seen their parents get burned by the real estate crash. 

7:40 – Millennials are putting off marriage, living with their parents, and have massive student loan debt. 

9:35 – It's hard to get good stats on individual home owners or single family homes.

11:35 – If Fannie Mae and Freddie Mac were to go away, it would free up 25 million new renters. 

14:30 – Jason answers a listener question about risk mitigation for properties. 

19:20 – Jason answers another question about renting versus owning. 

 

27:05 – Next episode Jason will have Dan Mitchell, Senior Fellow from the Cato Institute, on the show. 

 

Mentioned In This Episode:

 

http://realestateconsulting.com/affluent-apartment-renters-slow-to-buy-a-home/

Direct download: CW_505.mp3
Category:general -- posted at: 1:33pm EST

Jason Hartman talks with investment counselor, Sara, about investor psychology, overcoming obstacles and getting out of our own way.  The smoke-and-mirrors propaganda perpetuated by mainstream media (lamestream media as Sarah Palin says) in reporting the new high in the Dow Jones Industrial Average (DJIA).  

They almost always fail to distinguish between nominal dollars and real dollars.  Jason illustrates how investors have actually lost money in inflation adjusted dollars and how the Dow has to increase a lot more before investors break even based on the two peaks.  This lie is even worse when one considers how inflation is underreported in the consumer price index (CPI and CPI-U) due to weighting, substitution and hedonics (the hedonic index).  Another misrepresentation is the ‘core rate’ or ‘core inflation’ which strips out food and energy because they’re too volatile.  Jason shares some interesting data from ZeroHedge.com.

Jason and Sara discuss announce the Memphis Distressed Property Tour and Creating Wealth Bootcamp, register at: http://www.jasonhartman.com/ (click on “events”). The Memphis Hilton will host the event.

You’ll hear a mortgage financing panel from Jason’s ‘Meet the Masters of Income Property Investing’ event last January in Irvine, California.  Many topics are discussed, including:

 

 

  • How investors can obtain more than 10 Fannie Mae (FNMA) loans
  • How banks underwrite non-owner occupied loans
  • Implications of strategic default
  • Property financing with entities like LLCs, corporations and trusts
  • Private lending/hard money lending options
  • And much more
Direct download: CW_504.mp3
Category:general -- posted at: 6:33pm EST

To start, Jason's mother joins Creating Wealth to speak on the latest in the real estate market and rent to value ratios. Today's Creating Wealth guest is Managing Director of Dandrew Partners New York, Salvatore Buscemi. Dandrew Parnters specializes in non-performing residential mortgages. Salvatore talks about why the real estate market collapsed, dealing with inexperienced investors, real estate crowd funding, and more on today's show. 

 

Key Takeaways:

2:00 – Jason's mother will be joining the Memphis property tour. 

19:05 – Jason is waiting for space flights to be cheaper before he goes. 

21:20 – Jason welcomes Salvatore Buscemi to the show. 

30:20 – Not everyone is a crook, they just may be inexperienced. 

40:05 – Many crowd funded deals are dealing with a less experienced investor who might not be able to bring a lot to the table. 

48:30 – Foreigners still see America as a safe place to put their money. 

60:50 – It can be hard to find legit real estate deals. Always ask the hard questions first.

 

Mentioned In This Episode: 

JasonHartman.com 

Direct download: CW_503.mp3
Category:general -- posted at: 8:00am EST

Jason Hartman reads a listener question about the rental rates decreasing and what to do about it. He also invites Jurgen Neugebohrn to the show and answers some of his personal questions. Jurgen is in the oil industry in Saudi Arabia and is interested in the real estate market. He has some very interesting questions for Jason to answer and picks Jason's brain on investing in real estate. 

 

Key Takeaways:

4:50 – You don't hear about the people who have lost money investing in low rent to value ratio markets. 

7:25 – Jason reads a listener question about rental rates decreasing. 

12:15 – Remember to join our Memphis property tour! 

13:50 – Jason introduces Jurgen, an online listener, to the show. 

19:50 – What's Saudi Arabia like? 

23:30 – According to Jim Norman, the reason why oil prices are so low now is because the US is trying to economically hurt Russia and Venezuela. 

25:00 Jason explains why he disagrees with Harry Dent. 

32:00 – Jason doesn't have a check list on what you should buy because properties vary depending on the investor's needs. 

 

35:35 – Jurgen asks one last question about Fernando's independence day. 

 

Mentioned In This Episode: 

 

The Oil Card by Jim Norman

Direct download: CW_502.mp3
Category:general -- posted at: 3:00pm EST

If you thought economics was boring, think again. At the heart of wars, land grabs, politics, history, and almost any sort of human interaction lies economics. Remember – economics is about money, and money, depending upon your perspective, either makes the world go ‘round or is the root of all evil.

Either way, Jason Hartman’s interview of master economist, Martin Armstrong, for episode #382 of The Creating Wealth Show makes for scintillating listening. First, some background.

Martin Armstrong is the former chairman of Princeton Economics International Ltd. He is best known for his economic predictions based on the Economic Confidence Model, which he developed. In September 1999, Armstrong faced prosecution by the Securities and Exchange Commission and the Commodity Futures Trading Commission for fraud. During the trial, Armstrong was imprisoned for over seven years for civil contempt of court, one of the longest-running cases of civil contempt in American legal history. In August 2006, Armstrong pleaded guilty to one count of conspiracy to commit fraud, and began a five-year sentence.

Armstrong is the developer of the Economic Confidence Model based on business cycles. He is known for claiming to have predicted the crash of 1987 to the very day. Using his theory that boom-bust cycles occur once every 3,141 days (the number pi multiplied by 1000), Armstrong claimed in 1999 to have predicted the Nikkei’s collapse in 1989 and Russia’s financial collapse in 1998.

During this interview Jason and Martin delve into a number of topics:

Putin’s Plan
Armstrong reminds us that Russian President Putin is a KGB disciple who would love nothing more than to put the Soviet Union back together. Through this prism, it’s not difficult to see the reasons behind his land grab in the Ukraine. He believes that the strength of a nation depends upon how much territory it owns, so look out Poland, etc! It’s also worthwhile to note that the failure of communism in Russia left a void that has been filled by a good, old-fashioned oligarchy.

Inflation vs. Deflation
As all good economists do, Mr. Armstrong has a strong understanding of, and opinions about, the inflation and deflation in an economy. Of course, Jason loves this topic whenever it arise in conversation. The main point Martin makes is that it is not inflation that destroys an economy, but rather deflation. Listen in as he explains exactly how.

Other notes of interest from the interview:

  • Why we’re on a 25-year war cycle and 8.6-year business cycle
  • Why the US ended up in the enviable/unenviable status as the Brinks truck to the world
  • Is the American dollar now a de facto international currency?
  • The US will never enter hyperinflation (400% monthly inflation) – our corrupt bankers won’t let it happen
  • It’s almost impossible for Americans to open a bank account or do business overseas – what is Europe afraid of?
  • The next economic implosion will be in pension funds
  • The real reason behind the recent huge influx of foreigners buying real estate investments in the US
Direct download: CW_501_FBF.mp3
Category:general -- posted at: 6:00am EST

Welcome to the 500th episode of the Creating Wealth show. Jason is excited to bring on Fernando during the intro portion of the show. Fernando talks about how he first found about Jason's podcast and how it's been an incredible journey since then. Jason invites Guy Kawasaki on to the show to talk about social media and to also share some of his thoughts on the Steve Jobs work model. 

 

Key Takeaways:

1:50 – Thank you for supporting the Creating Wealth show. 

6:15 – Jason gives a highlight of some of the amazing guests he's had on the show. 

21:40 - Paul Zane Pilzer once talked about if you listen to the customer, you'll always be looking in the rear view mirror. 

27:30 – Jason welcomes Guy to the show. 

34:30 – Guy talks about when he uses Periscope's streaming service. 

39:30 – Guy shares his advice on branding. 

44:25 – Is it really the job of an entrepreneur to figure out what the customer wants before they know they want it? 

47:45 – The right thing to do is always keep learning. 

 

49:30 – Our technology right now gives entrepreneurs a lot of free tools to work with. 

Mentioned In This Episode:

Way of the Peaceful Warrior by Dan Millman

VentureAllianceMastermind.com

@GuyKawasaki 

 

GuyKawasaki.com

Direct download: CW_500.mp3
Category:general -- posted at: 9:45pm EST