Creating Wealth Real Estate Investing with Jason Hartman (general)

Join Jason Hartman and Investor Watchdog, Jack Waymire, for a discussion concerning the ethics of the financial services industry. According to Jack, the frequent lack of integrity undermines the achievement of investors’ financial goals.

Companies do not do what is best for you. They are very good at hiding information that they do not want their investors to know. Investor Watchdog investigates these companies and products, acting as a go-between for investors and advisers, answering frequently asked questions, such as, “How do I know I’m getting the right financial advice?” Jack shares examples of deceptive practices by various companies and how the executives that run the companies, i.e. Goldman Sachs, are insulated from accountability simply by paying fines rather than serving jail time for unethical and illegal practices. 

Jason and Jack touch on the subject of the Madoff Ponzi Scheme, where Jack talks about some of the evidence that was found, as a glaring example of unethical sales pitches and conman tactics. Jack also informs listeners of what deceptive sales practices to watch out for when dealing with financial advisers.

Jack entered the financial services industry as a financial consultant in 1976 for Warburg, Paribas Becker. He provided financial advice to companies, public entities, Taft-Hartley funds, endowments, and foundations with assets exceeding $7 billion. After spending two years with an investment firm, Jack co-founded Lexington Capital Management in 1983, a money management firm that wholesaled its services through wirehouses and regional broker-dealers. In 1989, Jack also founded a broker-dealer and built a national retail distribution system to market its products and services. Between 1996 and 2003, Lexington was sold to two larger financial service and technology companies. In his last position, Jack was President of Sungard Advisor Technologies. During these 20 years, Jack worked with thousands of investors and financial advisors and was responsible for providing services to individual investors with billions of dollars of assets.

In 2004, Jack left the financial services industry to market a book he authored: Who’s Watching Your Money? The 17 Paladin Principles for Selecting a Financial Advisor. Published in December, 2003, by John Wiley & Sons, his book was widely regarded as the first to provide an objective process investors could use to select higher quality advisors and to avoid the risks and consequences of bad advice from lower quality advisors. In 2004, Jack co-founded PaladinRegistry.com, a website that took selected content from his book and made it available to investors over the Internet. Later in 2004, a Registry of pre-screened, five star rated financial planners and financial advisors was added to the website. Paladin became the first online firm that vetted financial professionals for investors and provided comprehensive documentation for their credentials, ethics, business practices, and services. In 2008, Jack was instrumental in the development this blog site (InvestorWatchdog.com) that reports on investment risks that result from ethical conflicts in the financial services industry. Jack has appeared on CNNfn and over 100 national, regional, and local radio shows to talk about the subject matter of his book, the risk and consequences of bad advice, and Paladin’s free online solutions. He is also widely quoted in the print media including Forbes, BusinessWeek, Worth, and Kiplinger and is a columnist for Worth Magazine. Jack can be reached at Jack@InvestorWatchdog.com.

Direct download: CW_546_FBF.mp3
Category:general -- posted at: 2:57pm EDT

This is a must listen to episode for investors. Guest Harry Dent has written over 7 books on using demographics to predict economic outcomes. He and Jason discuss the inevitable Chinese market crash, the deflation that is headed our way and the massive amounts of debt in the private and public sectors. For real estate buyers, it appears that the everyday house is the best place to invest right now and in the next 3 to 4 years we just might see the lowest interest rates on mortgage loans of this lifetime. Harry warns that the bigger the bubble the bigger the burst and predicts we will see the Dow drop below 6000 in the coming years and fracking bonds will be crucified. 

 

Key Takeaways: 

 

Jason’s Editorial:

[2:06] Daniel wants to know about a sole proprietorship

[3:48] There is no asset protection sole proprietorship 

[4:37] An LLC could be a self management company  

[6:15] Self managed properties 

[8:08] The power of the Venture Alliance Mastermind

[9:34] Jason’s next event - Sept/Oct

[11:28] The cost of colonizing the moon

 

Harry Dent interview:

[12:58] Florida the no income tax state

[13:44] A something for nothing life is not realistic

[14:36] Deleveraging the debt leads to money disappearing

[16:22] Debt grew 2.7x’s faster than GDP

[17:48] We are sitting on unfunded liabilities at 4x’s the GDP

[18:54] Debt detox is needed

[21:17] Is the U.S. in a legitimate economic recovery?

[24:39] Harry’s opinions on high end real estate 

[26:41] Banks and governments made bad loans

[27:23] Why the uber rich won’t get richer after this bubble 

[28:51] The greater fool theory - the Chinese are the last fools standing 

[31:16] Trends and data from China 

[33:45] Speculation will cause the crash in China

[35:22] The U.S. fracking industry will default

[37:00] Deflation is a sign a bubble is bursting 100 trillion dollars will disappear

[38:19] The Dow will drop to under 6,000 in the magphone pattern

[41:25] Junk bonds will be crucified and growing default rates

[42:48] Mortgage rate will come down in 3 or 4 years

 

Mentions:

The Demographic Cliff

The Great Boom Ahead 

The Roaring 2000’s

The Great Depression Ahead

 

HarryDent.com

Direct download: CW_545_Harry_Dent_How_to_Profit_from_The_Demographic_Cliff.mp3
Category:general -- posted at: 3:37pm EDT

Being stranded at the airport waiting for a flight is never fun but Jason and Fernando make the best of it by recording their observations of the investment property tour of Chicago and Grand Rapids. Overall, Chicago looks promising with strong providers and good properties. Grand Rapids was charming and offered many financing choices for current and future investors. A quick stop was made to Detroit to get feel for the area and look for opportunities that may be hiding there. The extra stop proved to be a disappointment based on the city’s state of disrepair and mass exodus of previous inhabitants. 

 

Key Takeaways:

[3:09] A Mastermind meeting on Monday & Tuesday

[3:42] A semi-private property tour

[4:09] Met local market specialists and in-house lending department

[6:32] The tenant turnover rate in an apartment in Chicago

[7:21] Tenant turnover rate in a single family home is much longer

[8:10] Virtual apartment investments

[9:00] Refinance discussion on a future episode 

[10:06] Land contracts in Grand Rapids

[10:39] Direct buying properties via self directed IRA

[12:40] Cosmetic changes are easy on good investment properties

[14:18] The Cold Stone Philosopher’s Club

[15:28] Detroit was depressing 

[17;39] Corrupt mayors & declining auto industry led to the death of Detroit

[19:21] Property taxes in Chicago 

[20:05] Providers make it possible to remove maintenance costs

[21:55] Judicial foreclosure states are good for investors

[23:25] Chicago is a world class city 

[24:16] Differences of a small provider versus a large provider 

 

[26:00] The small group tour was intimate and enjoyable

Direct download: CW_544_Jason_and_Fernando.mp3
Category:general -- posted at: 4:13pm EDT

Originally aired as CW 252

Despite popular belief, China is no longer a cheap place to do business with labor costs and real estate costs soaring. Join Jason Hartman as he interviews Shaun Rein, author of The End of Cheap China and Managing Director of China Market Research Group in Shanghai, about debunking common myths, such as China is stealing U.S. jobs.

Many companies have begun doing business in China, due to what Shaun refers to as “capitalism on steroids.” Labor costs have increased in China to the tune of around 20 percent, and the government is trying to increase wages yearly over the next five years. Another factor affecting manufacturing costs over time is that fewer of the younger generation wants to be employed in manufacturing jobs, wanting to realize their white class dreams. China is also pushing middle class development to offset the manufacturing issue.

Shaun Rein is the Managing Director of CMR, the world’s leading strategic market intelligence firm. He is one of the world’s recognized thought leaders on strategy consulting.

He is a columnist for Forbes on Leadership, Marketing, and China and for BusinessWeek’s Asia Insight section. He is often featured in the Wall Street Journal, the Harvard Business Review, The Economist, The Financial Times, Newsweek International, Bloomberg, Time, and the New York Times. He is regularly interviewed by American Public Radio’s Marketplace and NPR.

He frequently appears to deliver commentary on CNBC’s Squawk Box, Bloomberg TV, CBS News, and CNN International TV. Before founding CMR, he was the Chief of Research for venture capital firm Inter-Asia Venture Management. He also was the Managing Director, Country Head China for e-learning software company WebCT where he also ran the company’s Taiwan and South Korean operations. He also served as the Assistant Director of the Center for East Asian Research at McGill University. He earned his Master’s degree from Harvard University focused on China’s economy and received a BA Honors from McGill University.

Direct download: CW_543_FBF.mp3
Category:general -- posted at: 2:14pm EDT

The world of long term financial savings plans can leave you dizzy. The paperwork can be pages and pages of jargon which make plans hard to distinguish and administer. Jason’s guest Edwin Kelly from Specialized IRA Services breaks down the Self Directed IRA, the solo 401k and Health Savings Account or HSA. Arming you with the setup cost and annual fee’s to help you make an educated decisions about your investment future. You’ll hear solutions to creating wealth and obtaining more passive income through smart investing with a little help from people in the know. 

 

Key Takeaways:

 

Jason’s Editorial:

[2:02] Self directed IRA investing

[4:19] Nathan asks about out of state rental properties 

[5:19] Have at least 4% of the properties value in the bank as an emergency fund

[7:22] Steve asks about Jason’s foundation

[9:12] Steve also asks about credit history and bankruptcy

[12:06] Asset based financing; a hard money loan

 

Edwin Kelly Interview:

[14:29] Would Donald Trump be a good president?

[16:04] Invitation for Warren to be on the show

[16:58] IRA Custodians, Administrators what’s the difference?

[18:01] What are the fee’s of self-directed IRA’s

[19:22] There is no fee sharing or back end money

[20:40] A customized approach to IRA’s

[24:08] People need passive income 

[25:47] An everyday example of buy and hold real estate investing

[30:11] Solo 401k or Individual 401k

[34:46] Solo k paperwork was cumbersome and complex 

[35:55] $400 annually for a self directed IRA and $700 for a 401K

[38:32] HSA - Health Saving Account 

[39:53] An HSA works by marrying the tax benefits of the traditional and Roth IRA’s 

[41:22] Are you able to pay for proactive executive health physicals via a HSA?

[42:51] Breast Augmentation for medical reasons is a qualified medical expense

[45:17] An HSA is not a Flexible Saving Account

[45:55] Investing in buy and hold real estate from the HSA

[47:35] HSA and IRA are fairly easy to administer

[48:20] An LLC inside of an IRA? 

[51:08] Multiple LLC’s for asset protection

 

Mentions:

 

Specialized IRA Services 


Massive shifts in the world economy are coming and may be as soon as 2020. The United States has the unique opportunity to take charge of the change through technological breakthroughs that will lead us down the utopian path. In addition, the U.S. is still the best country in which to make real estate investments. But if you do it be wise about it. Private investments are one of the safest vehicles to create your wealth. Be wary of group investment funds which put the control of the funds in someone else’s hands. Jason cautions his listeners against this type of investing. Before signing any deal read every word of the paperwork. 

 

Key Takeaways:

 

Jason’s Editorial

[1:13] Oregon has no sales tax! A great place for retail therapy. 

[1:58] People make uneducated decisions

[3:59] The Venture Alliance for investors

[4:59] The group choice is not a good choice

[6:18] Partnerships with people you know and trust 

[8:15] The World Domination Summit is an example of the inefficiencies of conferences

[10:25] Unemployment and cohabitation is Greece

[11:54] Jason’s 6 Ways to Escape the Debt Disaster

[13:18] Human workers displaced by Robotics even the written word

[15:44] Countries in risk of a government external debt crisis 

[19:15] Leave us a voicemail on your thoughts of robotics in the future

[20:24] Minimum wage increases unemployment

[22:20] Massive shifts in the economy by 2020

[23:22] An update on the Chicago tour, 8:30 on Thursday morning

 

Listener Andrew:

[24:58] Jason help me with this investment in Texas

[28:00] What are the questions I need to ask before signing?

[29:30] Start by getting the basic information

[32:04] Jason doesn’t care for investing in groups 

[32:55] Thou shalt maintain control

[33:45] What protects your money from misuse when it’s part of a fund?

[36:05] If the deal is that good investors try and keep it to themselves. 

[39:56] Questions to ask before investing and read every word of the documents

[41:57] Be suspicious of the others investors involved

 

Mentions:

14 Countries that are Spiraling Towards a Debt Crisis - Heather Stewart

 

JasonHartman.com

Direct download: CW_541_Apartment_Fund_Listener_Q26A_with_Andrew.mp3
Category:general -- posted at: 9:00am EDT

As is customary on every 10th episode, Jason Hartman, your host, takes on a non-financial topic as he talks with Dr. Geoffrey Simmons, a physician who is Board-certified in Internal Medicine and Disaster Medicine. He has a B.S. in Zoology and has completed the course work for a Masters degree in Microbiology.

As a Fellow with the Discovery Institute Center for Science and Culture, he has studied the theory of evolution for over forty years. For thirty of those years he was an ardent supporter of Darwinian ideas. Now, however, the data supporting this theory scientifically untenable. As of this date, his seventh book, What Darwin Didn’t Know, is in its sixth printing and his eighth book, Billions of Missing Links, is in its second printing. Both books show how the incredible complexity of the human body and all other living beings cannot have come about through evolution. Some reviews:

“A well-researched and open-minded analyses.” — Stephen Meyer, PhD, Dir. of the Center for Science and Culture, Discovery Institute

“You’ve posed all those “break-down complexities” that Darwin worried about, and you’ve done it with flair!” — Jody Sjogren, Illustrator for Icons of Evolution

A wonderful book…clear and accessible to the nonspecialist — John Patrick, M.D., Prof. of the History of Science, Medicine and Faith, Augustine College, Ottawa, Canada.

Geoffrey Simmons is a rarity (referring to the types of books written). His book holds evolution, as he sees it, to the standard of scientific observation and finds evolution lacking — Dan Hays, Salem Statesman Journal, May 20, 2007
Dr. Geoffrey Simmons focuses on the millions of structures and systems on the Earth that came about all at once, entire…with no preceding links, no subsequent links, no “sideways” links.

To illustrate, he surveys examples like…

the hummingbird and its circulatory system
insects and insect–eating plants
the role of the thousands of species of viruses
chemical signals and the sensory apparatus that detects them
the self–regulating capacity of the Earth’s ocean/air/soil system
It’s clear: Nature containsonly leaps, not links. Only the intelligence and purpose of an all–powerful Designer can explain the intricate creatures, connections, and “coincidences” everywhere.

We’ll be back to our usual investing, business and financial topics in the next episode #211. Be sure to join Jason and his team for the upcoming Phoenix Foreclosure Tour http://jasonhartman.com/store/events/ where we’ll explore distressed property / REO opportunities and enjoy first-class accommodations at The Ritz Carlton Hotel in The Biltmore area of Phoenix / Scottsdale, Arizona.

Direct download: CW_540_FBF.mp3
Category:general -- posted at: 2:00pm EDT

It’s unclear exactly why Memphis is a rental property owners dream investment city but it is. Vacancy rates are consistently 5% or less year over year. Even when people are qualified to purchase a property they insist on renting. Add to that the dynamic nature of this culture filled town and major distribution companies who do business there and you get a perfect bluesy mix of properties and opportunities for your next investment. 

 

Key Takeaways:

 

Jason’s Editorial:

[1:42] Chicago property tour 7/15 -7/17

[2:58] 3 cities now that Detroit is confirmed

[4:12] Voicemail from Roger about managing your property managers

[6:10] An entire episode on managing your manager coming

[6:40] Search Jasonhartman.com with the keyword property manager

[8:00] CNBC video - Rents rising and supply is constrained

[9:59] Let’s get in the game and take action

 

Ryan from Memphis:

[11:57] Invest in Memphis - it’s great for rental properties

[13:10] Is Memphis saturated with investors?

[13:48] Why you should love Memphis as a rental property buyer

[14:44] Vacancy rates are 5% or less

[16:00] The reasons tenants rent 

[17:03] Rent a nicer place than they can own 

[20:02] Society is changing towards not planting roots

[20:48] Time Magazine home ownership article

[22:56] People are looking for dynamic, cultured cities

[24:53] Different levels of property available in Memphis

[26:38] The evaluation process for finding properties

[29:12] The government assisted housing dilemma

[32:00] The benefits of a section 8 housing tenant

[34:45] Ryan’s unique selling proposition

[36:24] When choosing which markets are best, Memphis is growing

 

Mentions:

La Banque - Chicago hotel of choice - $131 per night - (708) 798-6000

Jasonhartman.com

 

Memphis Housing Authority

Direct download: CW_539_Memphis_Market_Profile.mp3
Category:general -- posted at: 2:51pm EDT

A good business is one that cannot be outsourced and people will always need a place to live. This is why Jason focuses on income properties when recommending creative wealth strategies for you. He keeps abreast of interest rates, taxes and credit based assets so he can help you achieve the financial future you deserve. Jason’s guest Mark Kohler CPA  just completed his third book and offers 28 tips for tax planning and asset protection. He talks about S corps, LLC’s and Obamacare. He wants everyone to have an exit plan for their life through a versatile revocable living trust because as much as you may not want to admit it we are all mortal. 

 

Key Takeaways:

 

Jason’s Editorial:

[1:25] Teaching a great real estate course

[2:26] Monetary and fiscal policy definitions

[3:42] Real estate and income property differences

[4:29] The easiest type of real estate to own is a parking lot

[6:00] Real estate in the average U.S. city is 40% parking

[7:32] Financial Independence Day Counseling

[7:54] Chicago and Grand Rapids property tour

[8:33] Self driving cars could eliminate parking needs

[9:42] Credit based appreciation

[10:04] Interest rates and the math of relativity

[10:56] Find a mortgage calculator and do this math 

[12:11] The golden opportunity of low interest rates

[12:54] If the money supply declines credit based assets are affected more

[13:35] Inflation induced debt destruction

[14:12] Multiple tax advantages

[15:04] Learn about land contracts

 

Mark Kohler interview:

[16:45] 28 game changing strategies for tax and asset protection

[17:10] The first book was about people who get taken advantage of

[17:30] The second book was a story

[18:00] The 3rd book brings it all together

[18:45] 3 Tips for planning

[19:30] Know the difference between ordinary income and passive income

[23:00] A real life example of Obamacare related requirements

[24:14] The 3 costs related to Obamacare

[25:00] Income property is a proven tax favored asset class

[25:50] Healthcare strategies

[26:45] The solution is the S corporation for multiple sources of income

[28:24] LLC do not save taxes

[29:17] The Kohler Payroll Matrix

[30:37] You do not need an LLC for every rental

[32:16] Know your properties and find a balance

[35:10] Register as a foreign LLC in every state that you have property

[36:44] Don’t forget about the legal and tax planning that needs to be done

[37:32] How do these things fit into your estate plan? 

[38:52] Revocable Living Trust

[42:20] A real life “Do not resuscitate” experience 

 

Mentions:

Financial Independence Program 

Chicago/Grand Rapids Property Tour 

Uber

Lyft

Lawyers are Liars

The Tax and Legal Playbook 

MarkJKohler.com

 

Direct download: Episode-Removed.mp3
Category:general -- posted at: 3:55pm EDT

Join Jason Hartman as he talks with guest, Steve H. Murdock, former Census Bureau Director and current Professor of Sociology at Rice University in Texas, about the demographic shift taking place in the U.S. today .  The face of Texas has been shifting dramatically, not just from immigration, but in-migration and natural increase.  Steve argues that the Texas of today is the U.S. of tomorrow. 

Steve and Jason discuss the changes in population, as well as the factors influencing these changes, and the potential effect of this current demographic shift throughout our country.

Steve H. Murdock is the Allyn R. and Gladys M. Cline Professor of Sociology at Rice University. He previously served as Director of the U.S. Bureau of the Census having been nominated for the position by President Bush and unanimously confirmed by the U.S. Senate in 2007 and serving until the change in administration in January of 2009. Prior to his appointment at Rice, he was the Lutcher Brown Distinguished Chair in Demography and Organization Studies at the University of Texas at San Antonio (UTSA) and the Director of the Institute for Demographic and Socioeconomic Research.  Before UTSA, Murdock was a Regents Professor and Head of the Department of Rural Sociology at Texas A&M University.  He was also the official State Demographer of Texas.  He was appointed to this position by Governor Rick Perry and was the first person to occupy this position. Dr. Murdock earned his Ph.D. in demography and sociology from the University of Kentucky and is the author or editor of 13 books and more than 150 articles and technical reports on the implications of current and future demographic and socioeconomic change. 

He is the recipient of numerous honors and awards. These include the Faculty Distinguished Achievement Award in Research from Texas A&M University, the Excellence in Research Award and the Outstanding Rural Sociologist Award from the Rural Sociological Society, The Distinguished Alumni Award from North Dakota State University and the Distinguished Alumni Award from the Department of Sociology at the University of Kentucky.  He was named one of the fifty most influential Texans by Texas Business in 1997 and as one of the twenty-five most influential persons in Texas by Texas Monthly in 2005.  He is a member of the Phi Beta Kappa, Phi Kappa Phi, and Phi Eta Epsilon national honor societies.

Direct download: CW_537_FBF.mp3
Category:general -- posted at: 3:02pm EDT