Creating Wealth Real Estate Investing with Jason Hartman (general)

Is the home ownership rate too high? Are millennials going to enter the market and disrupt everything? To answer these questions you have to answer Jason Hartman's key question in life: compared to what? Any time you're making plans or comparing one thing to another, the question of compared to what pops up, and it's something we should continue to ask ourselves.

Is buying a rental home a smart option? Compared to what?

Should I put money toward this investment? Compared to what?

Later in the show Jason talks with Ed mermelstein, founding partner of Rheem Bell & Mermelstein LLP, about what the GOP tax plan will likely do to foreign investment in US real estate. Ed describes how foreign investors are CURRENTLY investing in the US, and whether this plan will make the money flow in to the country or go running away to other countries. This impact will have especially large effects on big name markets like New York, San Francisco, and Los Angeles.

Key Takeaways:

Jason Intro:

[2:45] "Compared to what" is the question you need to ask about everything, and it's especially important when it comes to foreign real estate investors in the United States

[8:24] Millennials are entering the housing market, but not in a significant percentage

[11:23] Jason's big piece of advice for people making their 5-year plan video

[14:21] David Copperfield & Jerry Seinfeld's net worths go to show you the power of media & scalability

[16:19] The list of countries with the highest & lowest GNI

Ed Mermelstein Interview:

[23:59] Will the proposed tax plan make the US real estate market more or less attractive to foreign investors?

[26:14] The typical business designation that foreign investors use

[28:49] Why some changes in deductions will effect investment in big cities like NY, LA, SF

[31:55] Which countries some of the major US markets get most of their foreign investment dollars from, and how the investors are using their properties

[35:58] Are any foreign governments buying US real estate?

[38:59] The US is in a sweet spot where European and Asian investors will invest, but it doesn't go overboard because of logistics like time differences and distance


"If fewer people wanted to own homes it will be better for the economy, and it will be better for investors."

Foreign investment tends to sometimes make the news in a negative manner, but we should also consider the benefits of foreign investment in the United States

Direct download: CW_919_Ed_Mermelstein.mp3
Category:general -- posted at: 10:46am EDT

Today's Flash Back Friday comes from Episode 581, originally published in October 2015.

Understanding various mortgage types and how it affects you, the investor.

Even though Jason believes in a fixed rate, long-term, buy and hold mortgage strategy, he encourages people to be informed about the additional financing options available. This week he and Naresh take a deep dive into the adjustable-rate mortgage, breaking it down into easy to understand piece parts. They also discuss the wrap around mortgage, what the term negative rate means and give numerical examples to clearly explain each distinct type of calculation.

Key Takeaways:

[2:46] 5 Elements of adjustable-rate mortgages (ARM)

[4:19] 1. Start or Teaser rate

[5:10] 2. Index

[7:20] 3. Margin

[8:50] 4. Annual cap – 3 types

[13:38] Negative interest rates

[18:17] Negative amortization rate

[19:05] Sophisticated investing techniques

[22:43] AITD – Wrap around mortgage

[24:23] Wrap around mortgage example


Direct download: CW_918_FBF_Financing_Options.mp3
Category:general -- posted at: 9:04am EDT

Jason Hartman is happy to bring one of his clients, Adam Jackson, on to the show to talk about his journey into real estate investing. Adam started buying properties toward the end of 2016, and has subsequently purchased 11 homes in the past year on his quest for financial freedom.

Adam shares what markets he's currently invested in, where he's looking to expand, keeping score with personal financial statements, and keeping a healthy balance.

Key Takeaways:

Jason Intro:

[2:07] Do your 5-year plan and submit it to

[6:40] 2018 is predicted to be an earthquake heavy year, so be careful with your property in earthquake zones

[10:02] Venezuela is the latest example of runaway inflation

[13:15] Invest in commodities and fight inflation with income properties

Client Case Study with Adam Jackson:

[15:33] Who is Adam Jackson?

[21:12] Where Adam bought his first property, and why

[23:23] Why Adam chose to buy a home with cash

[31:12] When you suffer through an expensive repair, remember that your loss is shared by the government on your tax return

[33:50] How to keep score via financial statements

[38:44] The P vs PC Balance

[41:50] Adam's attempt at the abundance mentality and trying to pass along whatever wisdom/money/time he can

[45:31] Focusing on a few things in-depth is better than a little bit of everything


Submit Your 5-Year Plan!

Magic Power by Triumph

"The other asset, that people don't realize they have, is their credit"

Direct download: CW_917_Adam_Jackson.mp3
Category:general -- posted at: 2:07pm EDT

Over the Thanksgiving weekend, Jason Hartman found himself looking through his old books in his mom's house. In the stacks he found two books that were key in his investing journey, The Art of the Deal by Donald Trump, and Mission Success by Og Mandino. Jason explains why these books impacted him so much and why they're still important today.

Then, Jason talks with Jeff Meyers, President at Meyers Research, about the state of the housing market across the USA, and how much runway the market might have. They also discuss whether millenials are finally ready to buy their first houses, and the incredible impact the self-driving car will have.

Key Takeaways:

Jason Intro:

[2:40] The book that turned around Jason's real estate career at the age of 24

[6:33] Jason would listen to Og Mandino's Mission Success cassette on repeat

[11:54] Walter Hoving's views on capitalism

[15:15] Capitalism is the best (and most natural) economic system ever

[17:47] A sale! $200 off VIP or Elite level Meet the Masters ticket

Jeff Meyers Interview:

[21:13] Are the millenials finally entering the home buying market?

[24:04] There's been a long economic recovery, but housing hasn't led the way so Jeff sees more runway

[28:43] When did the real recovery from the Great Recession begin, and how does it affect where we are in the housing cycle?

[31:24] Mortgage lending is getting tighter than ever, with the average FICO score on each loan being 720 (the banks are allowed to loan at 680)

[32:56] The self driving car could cause a resurgence of the suburbs, but it will DEFINITELY be a game changer for real estate (perhaps like how Amazon has changed the retail industry)

[36:09] The cottage industry that could spring up out of the emergence of the self driving car

Website: (promo code "black" for the sale)

The Art of the Deal

Mission Success by Og Mandino


Suburban markets we see some runway. they have not kept up, and that's where a lot of demand is starting to take off.

You have to remember that what caused this recession was a direct hit from the mortgage market

Direct download: CW_916_Jeff_Meyers.mp3
Category:general -- posted at: 2:13pm EDT

Jason Hartman is proud to announce the latest addition to the 2018 Meet the Masters of Income Property event, Ken McElroy.

Ken is a Rich Dad advisor and entrepreneur who is an expert in investment analysis, property management, and property development. He's responsible for over $700 million investment dollars in real estate.

Ken is the author of the best-selling books The ABC’s of Real Estate Investing, The Advanced Guide to Real Estate Investing, The ABC’s of Property Management, and most recently his book on entrepreneurship: The Sleeping Giant.


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

Today's Flash Back Friday comes from Episode 569, originally published in September 2015.

Don’t miss a thing with Jason Hartman University property acquisition checklists. So you’ve decided to invest in real estate, what now? Using the checklists provided by Jason…


Direct download: CW_915_FBF_Checklist.mp3
Category:general -- posted at: 10:00am EDT

It's Thanksgiving Day, and it's time to take stock of all the blessings in your life. Jason Hartman recorded this episode in the home of his new podcast editor, Adam Schroeder. The two of them discuss how Adam and his wife recently became real estate investors through Jason, as well as why it's important to acknowledge your blessings in life.

Key Takeaways:

[3:16] The Schroeder family purpose statement

[6:23] Client case study with Adam

[10:48] Why appraisals are getting harder to come in at the sales price of the home

[19:01] Dennis Prager's Gratitude

[25:31] Take time to make a list of what you're grateful for

[29:43] Feeling entitled can quickly become a burden


Direct download: CW_914_Adam_Schroeder.mp3
Category:general -- posted at: 11:17am EDT

Jason Hartman starts off the show talking with Elisabeth Embry about how she makes her 5-year plans, and why it's important. The 5-year plan contest is still going on, and you can win great prizes and set your future up for success by making one and sharing it with others.

Then, Jason continues his conversation with former Congressman Dr. Ron Paul. The two finish up their talk by looking at why the government thinks they're the best option for many aspects in our lives, what would happen if the government got out of the way and prices reverted to normal (rather than the distorted view we're getting today), and why we shouldn't expect to see inflation curbed in the near future (or ever, more likely).

Key Takeaways:

Jason Intro with Elisabeth Embry:

[2:33] The 5-year plan contest is still going on

[4:13] How Elisabeth, and her husband, take the time to put pen to paper and come up with their 5-year plan

[7:15] We tend to not put much emotion into our investing victories, which can make us only remember the negatives

[10:46] Planning your journey using the Amazon Press Release method

[14:37] Take stock of your resources, you probably have more than you realize

[16:01] Creating your 5-year plan will help it come true, we're able to achieve more than we realize when we say it out loud

Ron Paul Interview, Part 2:

[18:50] What business is it of the government to involve themselves in so many aspects of our lives?

[21:11] Many governmental programs have distorted markets like student loans and housing markets

[25:28] Distorted prices and manipulating the currency and tax codes makes people worry about gaining the best tax advantage rather than getting the highest return or providing the most value

[28:42] Inflation, from the government and central bank point of view, seems to be a great business plan


Direct download: CW_913_Ron_Paul_2.mp3
Category:general -- posted at: 7:42pm EDT

Jason Hartman kicks off today's episode with a look at Daren Blomquist's latest Housing Report and breaks it down piece by piece. He examines the data about a long-time low in housing starts, a construction worker shortage, and an investors lament.

Then, Jason introduces his guest, and Meet the Masters headline speaker, former Senator Dr. Ron Paul. The two examine what liberty really means, what governments role actually is, the damage our educational system is doing to our society, and what should be done with the federal income tax. Part 2 of Dr. Ron Paul's interview will be aired on Wednesday.

Key Takeaways:

Jason Monologue:

[3:50] Daren Blomquist, with ATTOM Data, has released his lastest Housing Report that examines the topic of bubble markets

[8:16] The construction void: lowest home starts since 1964

[13:16] The idea of a bubble warning

[17:04] When Jason didn't buy mobile home parks, an investors lament

[20:18] A huge labor shortage in the construction industry

[22:05] Don't forget to make your 5 year plan

Ron Paul Interview:

[24:01] What is the meaning of liberty, according to Ron Paul?

[28:50] How do you draw the line about what the government should be involved in?

[32:20] Ron Paul's liberty amendment to end income tax

[35:58] Progressive education has harmed our nation


Direct download: CW_912_Ron_Paul.mp3
Category:general -- posted at: 3:30pm EDT

Today's Flash Back Friday comes from Episode 563, from September 2015.

If you are using your buy and hold properties as short term rentals, through a company like AirBnB,  you may be required to pay an additional 15.3% self employment tax. Although it may seem like a gray area to you, the IRS considers it an active business and will take note of which schedule you are filing. Short term rentals require more of your labor and your time which rarely gets accounted for when calculating costs. Considering all the aspects of short term rentals versus long term buy and hold properties will shield you from future surprises.

Key Takeaways

Jason’s Editorial:

[2:04] The huge flaw in Airbnb

[3:10] The passing of Dr. Wayne Dyer

[4:14] The female perspective

[5:40] Positive Feedback from the 1st Jason Hartman University

[7:39] Save the Date for the next Meet the Masters in early January 2016

[9:30] The Venture Alliance Rhode Island trip details

Brandon Hall Guest Interview:

[15:02] Airbnb investors also have a 15.3% tax on active income

[16:13] Monetizing the value of your time

[16:44] Automated business systems allow me manage my real estate in only 30 min per month

[19:01] It’s more time and labor intensive than a buy and hold property

[21:50] A complicated scenario in setting up short term rentals

[24:49] Short term rentals may earn more but the time is not factored in

[25:45] Schedule E or Schedule C?

[27:47] The IRS may be bringing on the audits

[29:33] A 5 year depreciation schedule

[31:05] The diminimous safe harbor

[33:23] 500 material participation is solely for rental properties

[36:06] An example of a three unit qualifier for material participation

[37:53] Long distance self management is possible and maybe easier

[39:35] Segmented depreciation, cost segregation using a sears catalog

[42:41] Feasibility studies are expensive

[44:43] Everybody needs a home office






Direct download: CW_911_FBF_Brandon_Hall.mp3
Category:general -- posted at: 9:00am EDT