Wed, 13 November 2019
1324: Changes for National Association of Realtors & Prosperity in The Age of Decline by Brian Beaulieu, ITR Economics CEO
Jason Hartman talks with Brian Beaulieu, author of Prosperity in the Age of Decline and CEO of ITR Economics, about what's really going on in our economy right now. It's not as doom and gloom as some people have made it out to be, and it wasn't so a few years back. Brian explains what indicators you should really be paying attention to and what's coming up in 2020 as well.
[3:45] We have a duty to hold people accountable and not accept bad behavior
[5:11] Big happenings with the NAR that's going to change the market
[10:37] A testimonial that didn't seem like one to start
Brian Beaulieu Interview:
[15:52] What is the next cycle going to be?
[19:05] The G7 leading indicator is something you should be watching
[23:34] The peculiarity of the trade tariffs that have been imposed
[26:44] Globalization is under severe negative pressure
Tue, 12 November 2019
You've been hearing for a while about how Jason's not a huge fan of Opportunity Zones, worried that they're overhyped. Well, today Jason Hartman talks with Eric Willett, Vice President at RCLCO, about what aspects of Opportunity Zones might be superfluous and how the real estate industry is reacting to the investment opportunity.
[5:53] We still have no idea the impact/ramifications of Opportunity Zones, but we're already seeing gentrification coming from it
[9:15] One of the big criticisms about Opportunity Zones is that many of them no longer need the designation due to investments that have already occurred
[13:09] The unintended consequences of Opportunity Zones
[17:27] How the gentrification index works
[22:57] The current state of multifamily housing
Mon, 11 November 2019
On this Veterans Day, Jason Hartman and Adam start today's episode discussing the history of the holiday, the 30th anniversary of the fall of the Berlin Wall, and, most important to real estate, the importance of due diligence (and the importance of questioning your own due diligence).
Then Jason talks with Patrick Boyaggi, CEO and co-founder of Own Up. Patrick and his company have a new mortgage model that can avoid hard credit inquiries that might aid investors looking for a loan but worried about their credit score.
[5:50] Jason's previous experiences at the Berlin Wall
[11:16] Advice on what to do after you do your due diligence on a property
[17:11] Near death experience and a criminals attempt to exploit it
Patrick Boyaggi Interview:
[21:46] Can rates stay low?
[26:24] Using Patrick's mortgage product doesn't give your credit a hard hit, how do they manage that?
[30:59] The impact of soft inquiries on your credit score
Fri, 8 November 2019
Today's Flash Back Friday comes from Episode 913, originally published in November 2017.
Jason Hartman starts off the show talking with Elisabeth Embry about how she makes her 5-year plans, and why it's important.
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).
[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
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
Thu, 7 November 2019
Before launching into his off-topic 10th episode show, Jason Hartman takes a minute to discuss a topic of real estate interest: the lack of homes available to homebuyers with a price point below $250,000.
Then Jason talks with Sharyl Attkisson, host of Sinclair Sundays, former CBS anchor and author of Stonewalled: My Fight for Truth Against the Forces of Obstruction, Intimidation, and Harassment in Obama's Washington, about today's atmosphere of fake news, online bullying and defamation, and how we can possibly combat them.
[4:17] Homes below 250k are starting to become extinct
Sharyl Attkisson Interview:
[9:50] With just a few Twitter accounts, smear operators can start an entire movement
[14:32] How do we reconcile a free but credible press when there are so many anonymous sources today?
[20:44] Journalists use to keep their political opinions to themselves, but now they're almost rewarded for it
[25:51] What should we make of the big tech companies censorship?
Wed, 6 November 2019
Jason Hartman reiterates the importance of Commandment #3 to start off today's episode: Thou Shalt Maintain Control!!! At his mastermind event he was pitched a syndication deal that reminded him how you can invest in deals that could make money but still come out behind when you compare it to other possibilites.
While discussing investing in funds/syndications, he also delves into the principal of character vs personality. When you're investing, it's important to look past most of the personality and focus on character or you could end up looking at a horrible result.
[4:37] A syndication deal Jason recently was pitched
[7:01] You shouldn't be happy just because you made some money.
[9:50] The Personality Ethic vs the Character Ethic
[18:35] Is California a 3rd World State?
[24:13] Why you should care about California's demise even if you don't live in that state or even country
[32:14] The people in charge are distracting us so they can do what they want behind the scenes
Tue, 5 November 2019
Jason Hartman starts today's show discussing the importance of finding a group that brings out the best you possible. Sometimes that can cost a lot of money, sometimes it doesn't. Then Jason explores another story that illustrates the importance of Commandment #3.
Then Jason talks with Ali Wolf, Director of Economic Research at Meyers Research, LLC. Ali and Jason explore which indicators are important and which ones are just smoke and mirrors when you're examining housing markets and markets in general. No surprise, some of the big ones you hear about in the news aren't the most helpful.
[4:24] The value of a network
[6:44] Jason's gotten back into Tabatta Pro
[10:15] Under Armour is coming under investigation
Ali Wolf Interview:
[17:30] What indicators you should pay attention to and which you should ignore as an investor
[20:19] Wages in the US are going up, but wage growth minus inflation still doesn't give people a big enough raise to keep up
[24:58] Even with the bad things that are happening we're still in positive growth
Mon, 4 November 2019
Jason Hartman and Investment Counselor Doug take a look at the danger of manias, especially when it comes to investing in startup companies (like WeWork). It's easy to get caught up in rising valuations and the like, but it's also easy to lose a whole lot doing so.
Jason and Doug then discuss the Wealth Simulation exercise that was held at Profits in Paradise, including lessons learned about the method of building your portfolio that will set you up for the greatest wealth.
[4:22] WeWork is a great example of why you should follow Commandment 21: Thou Shalt Avoid Manias
[9:17] Don't fall for the company line of how they're going to change the world. Voluntary exchange with a company changes the world on its own
[12:24] Don't be fooled by the resume or the amount of money that's being pumped into a company when making investment decisions
[13:57] Blogcast: Housing vs Shelter
[21:22] How the Wealth Simulation exercise worked
[25:23] One of the top strategies in the wealth simulation game was a mixture of linear and hybrid markets so you could take advantage of cash flow and appreciation
[31:35] You don't have to have too many properties before you're at the point where you're dealing with the law of large numbers
Fri, 1 November 2019
Today's Flash Back Friday comes from Episode 912, originally published in November 2017.
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.
[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
Thu, 31 October 2019
1315: Rent Control & Building By Building, Block by Block with Paul J Massey, Mayorial Candidate for NYC
Jason Hartman talks rent control today, both in his intro discussing the upcoming deadline for California's state wide rent control, and with Paul J Massey, former mayorial candidate for New York City and CEO of B6 Real Estate Advisors, as the two discuss the impact rent control is having on the real estate market in New York City. Cap rates aren't terrible for multifamily at the moment, but nobody knows what the future of their property is, so it's holding things back quite a bit.
[3:19] LA City Council recently decided that landlords are required to let current tenants renew their lease
[11:22] US housing affordability woes causing migrations
Paul Massey Interview:
[18:24] Luxury homes and condominiums have been overbuilt in New York City
[21:31] What are the reasons rent control is being done?
[25:14] Paul's real estate journey in New York City
[27:26] Cap rates available in New York City
Wed, 30 October 2019
Jason Hartman and Adam begin today's show discussing Jason's first car and how he recently adjusted the price of his old cars to inflation. They also discuss what's going to happen to McMansions with the new generations coming and the impact of declining HELOC activity.
Then Jason finishes his talk with Jeff Fromm, the Millennial Marketing Guy, about Gen Z & Y. While the two generations are close in age, they are incredibly different when it comes to advertising and habits, so it's crucial that you understand the difference in the two.
[3:57] Adjusting things for inflation makes a world of difference when comparing
[7:46] The generation that's willing to give up the most to buy a home is Gen Z
[10:48] McMansions and Millennials
[14:03] HELOC activity being lower is a good thing for housing market stability
[17:36] The importance of skin in the game
Jeff Fromm, Part 2
[18:33] Gen Z and Y both like to be involved with companies that support their causes, but there are some differences
[22:42] Will the Millennials and Gen Zers have interest in the McMansions that were built?
Tue, 29 October 2019
1313: Mortgage Payments, Buying Power & Generational Differences Between Gen Y & Z with Millennial Marketing Guy Jeff Fromm
Jason Hartman starts today's episode discussing improved home purchasing power for consumers. Shifts in median mortgage payments has created opportunities for buyers and investors.
Then we have the first part of Jason's talk with Jeff Fromm, the Millennial Marketing Guy, about the differences between Gen Y and Gen Z. While the two generations are close in age, they are incredibly different when it comes to advertising and habits, so it's crucial that you understand the difference in the two.
[4:24] The coming McMansion issue
[7:06] One of the High 5 metrics Jason looks at is the median mortgage payment
[11:35] Home prices are actually 42% below their 2006 peak when factoring in consumer house buying power
Jeff Fromm Interview, Part 1:
[20:35] Gen Z are NOT Millennials to the 2nd degree. They're more like Gen X
[24:07] Some of the big differences between Gen Y and Gen Z
Mon, 28 October 2019
From poolside at their luxurious resort in Orlando, Jason and his mom take a look back at the weekend to examine what all they learned during Profits in Paradise. The two discuss the high quality of construction being done by the team in Florida, what they learned about their real estate business and takeaways from the Wealth Simulation game Doug ran.
[5:20] The tools we have available for our real estate business can make us a lot more money than we could otherwise
[8:36] Jason's mom absolutely loved the single family new construction first impression during the Friday property tour
[14:11] James Malinchak's speeches reminded Jason's mom that you can often learn more things from your failures than successes
[18:37] As real estate investors we're running Invisible Organizations
[21:48] Mitch Russo's girlfriends letter to Jason about Profits in Paradise
Fri, 25 October 2019
Today's Flash Back Friday comes from Episode 948, originally published in January 2018.
Jason Hartman finishes up his conversation about asset protection with Garrett Sutton. The two delve into the external threats to your portfolios this time, looking at how to properly protect your properties if lawsuits come toward you.
Garrett also explains when you would want to take an LLC over a corporation, what states are best for protecting you, what actions are being taken to weaken LLCs across the nation, and why doing more than the law stipulates can be a very good, very easy thing.
[2:38] Photos from Meet the Masters are up at www.JasonHartman.com/Photos
Garrett Sutton Interview:
[7:31] Two areas where Jason sees real estate creating liabilities for the owner: fair housing and safety
[11:47] The external threat is the biggest threat for your assets
[13:47] Breaking down Slide #6
[17:54] What you need when you domesticate a judgement
[20:02] It's a good idea to have yearly meetings for your LLC even if your state doesn't require it
[22:13] States that have good asset protection for LLCs and corporations
[24:21] Why an LLC over a Corporation
[27:59] Some states are not providing asset protection for single member LLCs
[31:59] Garrett's $100 off deal for Jason's listeners
Thu, 24 October 2019
In this off-topic 10th episode, Jason Hartman spends some time analyzing the power of the brain and what our brain does to protect ourselves and allow us to function in our day to day life. He also lays down a challenge for all listeners in order to figure out what's important to us all.
Then Jason talks with Lawrence Susskind, Ford Professor of Environmental & Urban Planning at MIT and Vice-Chair of the Program on Negotiation at Harvard Law School and author of Entrepreneurial Negotiation: Understanding and Managing The Relationships That Determine Your Entrepreneurial Success, about what urban development means in today's age and ideas coming up that can help alleviate many of our city's difficulties.
Jason and Lawrence also discuss the importance of negotiation and the mindset you must have whenever you enter into them. Many people's attitudes these days are skewed toward doing what's best for themselves, and Lawrence explains why that's wrong and why the methods we're trying to use for negotiations are all wrong.
[4:25] Always be trying to strengthen your attention muscle
[7:15] Our brains are phenomenal at denying we're going to die, which allows us to function
[13:59] Jason actually did an assignment that a professor gave in the 1988 movie Cocktail
[19:20] What if we embraced life and brought our A game every day rather than thinking death was some thing way off we don't need to worry about?
Lawrence Susskind Interview:
[24:05] The art of urban planning and its changing nature
[27:06] Cities are going through a process of change and we're likely to see big cities continuing to spread rather than becoming denser
[32:09] Some ideas for the future on how to reduce or eliminate traffic
[36:47] The single most important thing to becoming a better negotiator
[41:49] You need to know the other party's options so that you can know where you stand in negotiations
[45:42] How negotiation can make you a better leader
[50:10] We need to stop thinking that text based communication can be a way to run a business
Wed, 23 October 2019
Jason Hartman and Adam come together to discuss an article from the Drudge Report about the big cities losing workers by the hundreds, as well as a Business Insider article looking at the number of Millennial Millaires and where they're located around the country. Jason and Adam explore what these trends and stats mean to real estate values and what real estate investors can do with that information. Plus, Jason brings an unbelievable property to the show for you, what's the catch???
[2:55] Big name cities are losing people in the 150-300 per day range
[6:39] A mass exodus to rural areas needs companies to embrace 100% remote working at a higher level
[10:19] A property comparison
[17:55] Don't just pay things because someone sends you an invoice. Make sure it's legitimate and the best price possible
[24:49] Where are the Millennial Millionaires and what's their wealth worth?
Tue, 22 October 2019
Today Jason Hartman examines Chapter 17 of Charles Murray's book, Coming Apart, and explores why it's so important that we face struggles and adversity in our life. Working for things and fighting battles is what makes things worth living, what keeps life interesting. Being handed things doesn't make life better, it makes it boring.
[3:51] The challenges and struggles we experience aren't bad, they're good
[12:31] If you want to build a great real estate portfolio, climb the corporate ladder, anything, you need to fight some battles
[15:56] Some recommended authors for your education
[20:10] People have compared the US to the Roman Empire, and it's important to remember that Rome collapsed from within
[27:06] Not having to work for things makes life boring and can tear you apart
[32:49] The more we rely on the government the worse our life gets
Mon, 21 October 2019
1307: Graying of America & Don't Save For Retirement, Millennial Guide to Financial Freedom by Daniel Ameduri, Future Money Trends
Jason Hartman and Adam begin today's episode discussing the topic of the graying of America, and what the increasing demographic of people over the age of 80 means to real estate investors.
Then Jason talks with Daniel Ameduri, co-founder of Future Money Trends newsletter and author of Don't Save For Retirement: A Millennial's Guide to Financial Freedom, about how the working environment has changed from the Baby Boomers to Millennials and how the Millennial generation need to change their mindset about retirement in order to not be left behind when they're ready to leave the rat race.
[5:52] How a cruise ship is a metaphor for life
[9:55] 18 million adults in the US will be in their 80s in the next decade
[12:23] The cost of construction could drive the elderly out of their homes if they need to renovate for their lifestyle
Daniel Ameduri Interview:
[18:55] What does Daniel mean when he tells people not to save for retirement???
[23:09] Beware financial advisers, there's more education required to be a hair stylist
[27:52] Millennials should embrace the freelance economy
[32:10] Daniel is seeing boom time for the next year
Fri, 18 October 2019
Today's Flash Back Friday comes from Episode 947, originally published in January 2018.
Jason Hartman wanted to make sure that the practice of asset protection is understood by every investor, because it can make or break your portfolio if done wrong.
As such, he invited Rich Dad Advisor Garrett Sutton back on the show for a long, in-depth interview. We'll finish it up tomorrow with the second half, but today the two discuss the inside/outside attack on LLCs, discuss which states have weak and strong LLC protections, and how to protect your properties properly.
[4:26] The impact of controlling the money
[7:58] How music has impacted societies around the world
[10:43] Want to go to the Icehotel in Sweden with Jason?
[13:11] The inside attack versus the outside attack
[16:54] California has the weakest asset protection laws in the union
[19:00] Why Wyoming LLCs can protect your other LLCs better than any other state
[23:34] If you have your state LLC inside a Wyoming LLC domesticated in your state, which state rules apply?
[25:44] Why is it called an "Armor 8" strategy and when is it a good choice?
[30:37] How the Wyoming LLC provided a win for a car wreck causer
Thu, 17 October 2019
1305: Client Case Study: Real Estate Investing Before, During & After The Great Recession with Sean Carroll
Jason Hartman talks with client Sean Carroll about the journey he's had with real estate. From starting out as an agent in New York before the Great Recession to losing every penny he had, Sean now has a portfolio of properties that is allowing him to be in the career he wants to be in. Jason and Sean explore Sean's best and worst decisions in order to help you stay on a safe, profitable path.
[4:04] How Sean lost BIG during the Great Recession
[8:53] The deal that truly put Sean under
[13:49] The system is set up to create asset inflation
[16:24] The owner of a home Sean sold in 2006 is still $70,000 underwater
[21:26] Stop calling things problems and start calling them challenges
[25:35] Apps, tools, tips Sean has for investors
Wed, 16 October 2019
1304: Refinancing, Housing Affordability & Homeless to Billionaire, 18 Wealth Attraction Principles for Creating Unlimited Opportunity by Andres Pira
From St. John, New Brunswick, Canada, Jason Hartman looks at 2 news articles that should make real estate investors pretty happy. They're about how even high earners aren't able to buy homes right now (giving us a bigger renter pool to serve) and how the refinance market has skyrocketed and how you can take advantage of it.
Then Jason talks with Andres Pira, CEO of Blue Horizon Developments, Managing Director of Phuket Condos & Homes and author of the book Homeless to Billionaire – The 18 Principles of Wealth Attraction and Creating Unlimited Opportunity, about his journey through real estate investing and how he reached this point in his career. Andres explains the importance of giving before expecting and how that will help you succeed in business and life.
[5:03] People making $100,000 a year still can't buy homes in many American cities
[9:16] Refinancing is up 300% due to low interest rates
Andres Pira Interview:
[13:29] Andres' path through the real estate world
[17:48] You have to take risks in life, so just make sure you consider the worst case scenario and whether you can bounce back from it
[21:21] Vibrational giving: give out first, then good things will come later
[26:31] Stop trying to win deals and make them win-win
Tue, 15 October 2019
Jason Hartman, from just outside the shores of Boston, takes a dive into the extent to which the idea of fiat currency has spread throughout the country's conscience in the past few years. Several years ago you wouldn't have heard a peep about it, but with the rise of cryptocurrency it's become more and more prevalent. He also explores Orlando's position in the rental market and how long properties are staying on the market.
Then we go to a clip from the 2018 Meet the Masters of Income Property, where Jason discusses how his prediction of 6 million new renters came more than true.
[4:23] Fiat money is becoming more and more understood by society at large
[9:39] Money is moving out of stocks in the largest quantity in the last decade
2018 Meet the Masters:
[18:00] The belief that the decline in home ownership rate is a tragedy for society is unfounded
[24:20] Eventually Millennials will start inheriting money and that will impact the housing market
Mon, 14 October 2019
From the Fall Foliage cruise, Jason Hartman begins today's show discussing what we don't see when we look at successful people. We don't see the struggles they've dealt with on the way to the success we now see.
Then Jason talks with Spencer Burleigh, co-founder of www.RentTheBackyard.com. Spencer's company will build a unit on your land, list it online and split the rental profits with you 50/50 as long as you have an area at least 25' by 20' clear and you live in your home most of the year. Listen in as Jason and Spencer discuss the business model and how you can take advantage of it.
[6:49] Anybody who is successful, we either don't realize or we forget that their success, but they've fought battles all the way
[13:10] A Nelson Mandela quote that you need to remember
Spencer Burleigh Interview:
[15:35] What problem is Rent the Backyard addressing?
[20:30] Rent the Backyard is able to create a second dwelling on the property without getting the land rezoned
[25:06] The stigma behind manufactured housing needs to go away, but it also needs to get cheaper
[28:38] The income side of Rent the Backyard's business model
Fri, 11 October 2019
1301 FBF: Leveling the Tax Playing Field, Inflation vs Technology, Popular (Stupid) Economic Ideas, Improve Your Quality of Living
Today's Flash Back Friday comes from Episode 1019, originally published in June 2018.
Jason Hartman has a solo episode today as he explores some recent news stories and examines a few items of the day. Venturing all over the topics, Jason mulls over why it's pretty common for the most popular economists to have the worst economic ideas (a la Karl Marx) and why the best economic ideas have the most disliked economists. Which leads to the question, what stupid ideas are we as a society embracing today?
He also discusses the Supreme Court ruling that will somewhat level the field of retail as online retailers are now able to be taxed by the states, giving at least some form of a light at the end of the tunnel for retailers.
Other topics of the day include the cost of terrorist protection, technology vs inflation, preventing identity theft, and the potential beginning of the demise of a massively overvalued (in Jason's mind) company.
[4:54] The economists who present the best economic views are not the most popular
[7:39] What totally stupid ideas are we embracing as a society today?
[13:08] One massively overvalued publicly traded company today
[16:39] The tax field was significantly leveled last week
[21:14] The battling forces of inflation and technology
[24:22] Why you need to shred EVERYTHING with a cross cut shredder
[26:45] If you can geoarbitrage, make a conscious choice to live in a higher quality location with a lower cost of living and low or no state income tax
[32:57] The demographics coming at the rental housing market in the next 10 years are nothing short of phenomenal
Thu, 10 October 2019
Jason Hartman begins today's show discussing some potential signs that inflation isn't currently a problem, his recent settlement he received from a landlord and what you can expect from business deals in today's environment.
Then, for our off-topic 10th show interview, Jason talks with Graham Hancock, author of the new book America Before: The Key to Earth's Lost Civilization, as well as the best selling book Fingerprints of the Gods: The Evidence for Earth's Lost Civilization, about why the Americas were probably settled long before we originally thought they were. The two also delve into the idea that past civilizations were much more advanced technologically than we give them credit for, their technology was just different from ours so we tend to discount it.
[4:28] The Producer Price Index has fallen, which suggests inflation is tame
[6:35] Jason's recent settlement with a landlord
[11:12] When you get in a business deal, don't expect to be able to hold people accountable through the system
[14:19] Corporate pensions are underfunded and a huge risk to rely on
Graham Hancock Interview:
[19:15] A massive cataclysm struck the earth between 12,800 - 11,600 years ago
[22:38] It's distinctly possible that the lost civilization was advanced technologically, just in a different way than we currently are
[25:21] The Great Pyramid shows us that whoever built it had a complete knowledge of the size and nature of the Earth
[28:48] The problem with American archaeologists' Clovis First model
[33:45] It's human nature to not want to admit you were wrong, but in the end the evidence will force people to accept new theories that are shown to be correct
Wed, 9 October 2019
Jason Hartman discusses something he has talked about many times today, and that is the value of a dollar. To do so he breaks down a YouTube video by the Wall Street Journal that discusses inflation and what scares the Fed when it comes to it. Then Jason and Investment Counselor Carrie discuss her recent mini-property tour with investors and the upcoming property tour in Florida the day before Profits in Paradise.
[4:37] Is capital or labor more important
[7:47] Low inflation or even deflation can have disasterous consequences
[12:59] When rates are low, more people take out credit, and credit is a phantom version of money supply
[17:32] Inflation arbitrage can't last forever
Jason & Carrie:
[23:43] How Carrie's mini-property tour went
[26:50] The Refi Til Ya Die plan in today's market
[31:15] We're in an environment where you can just ask your lender for a better interest rate and it can work without a refinance
[32:27] Inventory is finally starting to pick up
Tue, 8 October 2019
Jason Hartman and Investment Counselor Adam take today's episode to examine a real estate scam that is finally being investigated by the FTC that has been used to defraud untold number of people out of tens of thousands of dollars each. These criminals might finally be held accountable. After that Jason and Adam examine Dan Ariely's YouTube video about how to make money less abstract and why the idea of paying yourself first is so important. They then wrap up the episode with some great economic news for our tenants that neither side of the political aisle is talking about.
[4:07] The FTC is examining alleged scams with TV stars from shows about flipping
[9:33] Be wary of free events
[13:20] How to compare your money
[16:22] Create your own hedonic values when it comes to your money
[18:18] Pay yourself first is an important concept for our lives
[20:55] The Pain of Paying concept
[27:40] The wage growth story that neither political party wants to take credit for
[31:27] The theory of anti-fragility
Mon, 7 October 2019
Jason Hartman and Investment Counselor Sara talk about some of the issues that clients are dealing with and considering in today's episode. With rates as low as they've been in years and the ability to refinance or get a line of credit at reasonable rates, what is an investor to do?
[3:40] Non-refi interest rate reductions are happening, so don't be afraid to ask
[7:31] Refi a 30 year fixed rate or do a HELOC?
[12:17] A look back at "Go Zones" and what some of the problems were
[21:35] The current investor vibe
Sat, 5 October 2019
Jason Hartman joins Investment Counselor Sara and one of the Florida market specialists to discuss the upcoming Profits in Paradise event and the Florida property tour the Friday before the event. Prior to the Great Recession, the network dealt exclusively with new construction. Now it's a rarity, but Florida (and Atlanta) is able to provide that right now. New construction allows for win-win-win situations between investors, developers, and tenants.
Fri, 4 October 2019
1296 FBF: Your Investment's Weak Link & Dealing with Bad Sellers, Client Case Study with Muthiah, Part 1
Today's Flash Back Friday comes from Episode 995, originally published in May 2018.
Today's episode is another in property management education. It's crucial that you identify the weak link in all your investments, as well as figuring out a safeguard against them. When it comes to your real estate investing, it's quite possible that your weak link is your property manager.
After his intro, Jason Hartman has part 1 of a client case study with Muthiah where the two discuss an incident Muthiah recently had with a vendor, and what actions you can take when you're being wronged.
[5:25] Cutting out the middle men - property managers
[9:08] One of the best decisions Jason made when he got into the nationwide real estate business 14 years ago
[13:09] Looking for the weakest link in your investments
[17:30] Jason's been accused of being a complainer, but is that such a bad thing? Complainers change the world
Muthiah Client Case Study:
[22:27] What happened to Muthiah that created tension with the seller
[24:55] If the seller wants to close before the repairs are completed, the only way you accept is if they have money held in escrow in case they don't do what they promised
[28:00] The two ends of the company spectrum
[30:51] What Jason wants you to negotiate with your property management contract
[34:52] The inherent conflict of interest with property managers
Thu, 3 October 2019
Jason Hartman and investment counselor Adam take a look at some good news in today's economy. Home prices are expected to continue, mortgages are safer than ever, and jobs are increasing for all. They also look at some not so good news, from foreign money leaving the economy to the high income tax state apocalypse.
[2:56] CoreLogic expects home price gains to accelerate through 2020 and mortgage rates are expected to stay below 4%
[7:53] Mortgage default risk continues to decrease
[11:43] Inflation in entertainment has been enormous, watch out for how pooled money asset companies use their money to pay for it
[17:10] The high income tax state apocalypse is underway
[21:23] Foreign money has helped push out middle class people
[27:02] Some great news on jobs
Wed, 2 October 2019
1294: The Mystery of Capital, Why Capitalism Triumphs in the West & Fails Everywhere Else by Hernando De Soto
Jason Hartman wants to remind everyone to slow down and notice the things around you in life. Before getting to the main interview, Jason reflects on a country song he almost didn't listen to this morning and how it made him do a little introspection.
Then Jason talks with Hernando De Soto, founder and President of the Institute for Liberty and Democracy and author of The Mystery of Capital:, about the elements of capitalism that are most important and how property rights are absolutely essential. They also discuss the growing sentiment toward socialism in the United States and what impact that could have.
[6:12] Jason's lesson from a country song
[9:42] There will be an offering for tickets to the property tour on Friday before Profits in Paradise if you can only make that
Hernando de Soto Interview:
[12:56] The 5 mysteries of capital
[17:35] Capitalism is one of the few (if not only) systems that gives the lower classes a chance against the rich
[23:37] What we do as capitalists does not translate to what we do in politics
[28:11] The issue of equal opportunity for capital has to be addressed for capitalism to regain its popularity
Tue, 1 October 2019
Jason Hartman and Thomas the Economist take today to discuss a different view on Inflation Induced Debt Destruction. Jason and Thomas dig in to some stats from Shadow Stats that show what is, potentially, the real rate of inflation, and it's VASTLY different from the numbers the government puts out for public consumption.
[6:44] Jason's latest book recommendations
[7:55] One huge benefit we get as real estate investors is optionality
[13:20] Things aren't always as they seem when you look at the real numbers
[16:03] Interest rates and mortgage payments
[22:22] Houses today are barely any more expensive today than they were in 1989 based on adjusted numbers
[28:34] Substitution could be useful for inflation, but the government tends to abuse it to keep the numbers where they want
[32:34] How to get your after inflation and tax effective interest rate
Mon, 30 September 2019
Jason Hartman talks with Adam about the definition of a recession and what impact globalization may (or may not) have on the future of recessions. They also explore how the United States reacts to trade situations and what impact that has on markets such as the ones we invest in.
[2:55] With a recession potentially looming, you need to stress test your portfolio, which is something we'll be doing at Profits in Paradise
[8:09] Some of the old recession indicators aren't as reliable anymore because causes of GDP have shifted over the years
[10:48] A strong manufacturing base makes local economies take much longer to shift
[16:08] Why do they say that de-globalization could lead to more recessions
[19:40] It's important to look at states the same way we do countries to see which states are the friendliest to businesses
[24:41] The hidden benefits of self-management
[27:13] This year's wealth simulation will really delve into how Refi Til Ya Die really works
[26:00] The hidden benefits of self-management
[28:32] This year's wealth simulation will really delve into how Refi Til Ya Die really works
[32:54] A Baltimore, MD property available
Sat, 28 September 2019
Today focuses on Commandment #13: Thou Shalt Understand the Theory of Relativity As It Applies to Real Estate Investing.
Visualization is an immensely powerful thing. What the mind can conceive and believe, the mind can achieve.
Because of the power of visualization, Jason went and found an expert who can help real estate investors get in the right mindset and, hopefully, set you on a path to an even better portfolio and life.
Fri, 27 September 2019
Today's Flash Back Friday comes from Episode 952, originally published in February 2018.
Jason Hartman, his mom Joyce, and Drew finish up their long talk about property management practices. This time Drew throws some questions toward Joyce about how to walk the line with a tenant while still keeping a good personal relationship with them, tenant retention, and Jason's theory on the pinball effect that can happen when you own enough places in one market.
[2:01] Occassionally you may have difficulty with insurance when you self-manage
[2:56] The riskiest part of self-managing is the tenant turn
[6:34] Join Jason on a trip to Sweden or come to San Jose for the next JHU event
Jason's Mom & Drew Interview:
[9:34] One of the nice things about not being near your investment properties is that you CAN'T go over and meet anybody
[11:56] How to retain tenants, and how to get rid of deadbeats
[14:16] Once you've formed a relationship with a tenant as a self-manager, is it awkward to raise the rent on them or enforce late fees, etc?
[18:38] When do you build the expectation of rent increases into the relationship?
[25:39] Why the hybrid management is the best system, and what to expect from your realtor helping you
[28:15] Do self-management styles change based on the type of neighborhood your property is in?
[31:46] Jason's pinball effect when you have enough properties in one market
Thu, 26 September 2019
1290: New Construction Rates & Wealth Can't Wait, Avoid the 7 Wealth Traps & Miracle Morning Millionaires by David Osborn, Magnify Capital
Jason Hartman starts today's show discussing an article that explains how hard new construction starts are hitting various markets. They're down by over 80% in some markets and over 50% in a majority.
Then Jason talks with David Osborn, co-founder of Magnify Capital and best-selling author of Wealth Can't Wait: Avoid the 7 Wealth Traps, Implement the 7 Business Pillars, and Complete a Life Audit Today!, about making the conscious decision to be wealthy and how you can actually follow through on that decision while avoiding common pitfalls. They also discuss how absolutely vital the morning is to your life and how you can win the morning.
[2:44] Home building is down more than 50% since before the Great Recession
[7:32] Chicago only has about 20% of the construction they had before the Great Recession
David Osborn Interview:
[15:40] Being wealthy starts with making a choice
[19:36] The mindset is critical but often overlooked
[23:49] When you become successful you eventually just have to learn to deal with being in lawsuits
[26:58] Do NOT hire someone just because you like them
[33:49] Miracle Morning Millionaires
[35:47] By 11am the world is coming at you and you're in reaction mode
Wed, 25 September 2019
Jason Hartman and Adamp take a deep dive into what GDP is and some of the plusses and minuses inherent to it. While breaking down a CNBC video explaining GDP they look at whether government spending should be increased, decreased, or left the same, how just because GDP is rising doesn't mean our economy is improving, and much more.
[4:33] What Jason learned from a New York City bus driver
[10:26] The CEO of WeWork has stepped down, who helped show the importance of Commandment #3
[16:06] US GDP is 38% government spending
[21:02] Importance of looking at GDP rates and inflation rates
[26:40] The important relationship between income distribution and GDP
Tue, 24 September 2019
1288: Analyzing Dodd-Frank & Institute for Global Economic Growth, Richard Rahn, Advisor to President George HW Bush & Chief Economist of US Chamber of Commerce for Ronald Reagan
Jason Hartman and Adam start off today's show discussing the impact of Dodd-Frank on the US economy. The massive bill that was quickly pushed through in response to the Great Recession is still being sussed out, and it's possible some parts will never be fully enacted.
Then Jason talks with Richard Rahn, Advisor to former President George HW Bush and Chief Economist of US Chamber of Commerce for Ronald Reagan, about his thoughts on digital currencies and whether they will ever full grab hold in the United States with the power of the government. They also discuss Richard's time in politics and why he left the White House.
[6:50] The world of fakeness
[13:05] Dodd-Frank gave the government the ability to audit loans being given to companies, but the volume of loans makes that virtually impossible to reliably do
[16:12] Credit default swaps and the Great Recession
[18:57] Property profile of a home in Merrillville, IN
Richard Rahn Interview:
[24:01] When Richard started being interested in what would eventually become cryptocurrency
[31:24] The government could target any one of us because most people are committing crimes they don't even know about. But going after encrypted peer-to-peer transactions would be impossible
[35:17] Why does Richard think Bitcoin won't be the answer?
[36:30] Richard's time in the Reagan and Bush administration
Mon, 23 September 2019
Jason Hartman and his client, Rabbi Evan Moffic, are on the road today discussing two different investment philosophies. The first is the fox method, ping ponging between investments and always going for what's the hottest trend. Then there's the hedgehog strategy that has you focus on one thing and do it to the best of your abilities. After dissecting the pros and cons of those strategies it's time to investigate the abundance mentality and what good it can do us all in our lives.
[4:26] The fox strategy vs the hedgehog strategy
[7:28] Fox's at least take action, but hedgehogs stay true to the investment philosophy that they know and understand
[11:53] Evan is branching out a little buying a new construction short-term rental, but he made sure it could still function as a long term rental if trying a new strategy didn't work out
[16:01] It looks like there will be 2 property tours at the upcoming Profits in Paradise
[17:11] Evan will be speaking at Profits in Paradise, discussing happiness and wealth
[21:04] Judaism believes that wealth brings with it a responsibility to give
[24:40] One of the things Evan doesn't like about the FIRE movement
Sat, 21 September 2019
Visualization is an immensely powerful thing. What the mind can conceive and believe, the mind can achieve.
Because of the power of visualization, Jason went and found an expert who can help real estate investors get in the right mindset and, hopefully, set you on a path to an even better portfolio and life.
Today focuses on Commandment #12: Thou Shall Hold Thy Tenants Accountable.
Fri, 20 September 2019
Today's Flash Back Friday comes from Episode 951, originally published in February 2018.
It's time for Jason Hartman to have a good, old fashioned discussion on property management. This time, however, there are THREE sides at the table.
In one corner is Jason's mom, who is an EXTREME do-it-herself self-manager. In another corner is Drew, who has always been with a property management company and isn't ready to step into the self-management world. And in the final corner is Jason, with his method of a hybrid model.
Listen in as these three discuss concerns, strategies, and tips for property management, no matter which road you decide to go down.
[7:51] The hardest part of Jason's business is property management
[10:16] Drew's properties in Indianapolis were A builds, but after the Great Recession they're in C+ neighborhoods now
[13:05] Jason's hybrid self-management practice
[17:00] Where Jason's mom gets access to running credit reports and everything she needs to do to screen tenants
[21:58] The most important thing you need to communicate to your tenant about rent
[27:52] Property managers have inherent conflicts of interest
[29:48] How Joyce gets her property ready for the next tenant
[32:26] Questioning pricing can frequently lead to dramatic reductions in price
Thu, 19 September 2019
Jason Hartman and Carrie are happy to present 4 properties that have recently become available that are potentially great deals for your portfolio. Listen in as they break down each property, explaining where they are, what the team is like in that market, and what kind of returns you can get.
Thu, 19 September 2019
1285: Wealth and Justice, The Morality of Democratic Capitalism by Peter Wehner, The Atlantic, VP & Senior Fellow for Ethics & Public Policy Center
Jason Hartman talks with Peter Wehner, author of Wealth and Justice: The Morality of Democratic Capitalism and Vice President & Senior Fellow at the Ethics & Public Policy Center, about what attacks are currently being done against democratic capitalism and what we can do about them as a society. The two also explore the potential ramifications for capitalism being done by President Trump.
[4:35] Is Democratic Capitalism the most moral system out there?
[7:04] Capitalism correctly accounts for human nature
[10:25] The ideas of Karl Marx have been probably the most consequential in economic history
[13:38] The idea that the government has the moral high ground
[16:55] What does Peter mean with the saying "The death of politics"?
[20:41] Peter's concern about Trump's policies
[28:48] What is The Death of Politics about?
Wed, 18 September 2019
Jason Hartman and Adam discuss several issues in today's show. The first one is the news that the average FICO score is at an all time high. This is due to several factors, but the underlying facts about the credit rise show some very good news for our economy. The two also discuss a new credit scoring on the horizon that might help more people get credit and allow those who make strategic defaults able to get loans sooner.
After playing another of the 5 Year Plan videos, Jason and Adam dive into an event in France that shows the creep of what employers are responsible for, as well as a new California law that is aimed at companies that employ freelancers. The two have differing takes on the law, tell us yours!
[4:07] Jason has been researching an investment vehicle that might be better than the 1031 Exchange and he'll discuss it at the upcoming Profits in Paradise
[7:11] Consumer spending seems to be more in line with wages these days
[11:51] They're creating a new way to create credit scores with more data points
[15:39] Credit management isn't just the ability to repay
[19:29] Jeff's 5 Year Plan for retirement
[26:20] How employers are being hampered even more with a ridiculous event in France
[31:48] California's new law about independent contractors could have some big ramifications
[34:15] We need to divorce health care from employment
Tue, 17 September 2019
Jason Hartman starts today's show discussing some good news for real estate investors in the Chicago area, as well as why investors in California should actually be thankful for their current tax situation.
Then Jason talks with Rob Stephens, co-founder of Avalara MyLodgeTax, about whether the short-term rental market is oversupplied and what the impact of institutional investors is doing to the marketplace as a whole. They also discuss some of the tax implications of running short-term rentals.
[1:18] Good news for investors in Chicago
[7:34] Jason put an offer down for a short-term rental property, but make sure you're not violating Commandment #21 to avoid manias
[10:15] Tech companies are playing by different rules, so it's nice to see them being investigated
Rob Stephens Interview:
[13:59] Is the short-term rental market oversupplied?
[17:17] How will short-term rentals hold up in the next economic downturn?
[21:26] What has the increased usage of short-term rentals done to the timeshare market?
[22:43] The way institutional investors are getting involved in short-term rentals
[27:22] Tax compliance
[30:30] How much do room/tourism/hotel taxes differ across the country?
Mon, 16 September 2019
Jason Hartman and Adam examine some troubling trends in the real estate market these days. The first is the entire STATE of California, which is about to enact state wide rent control. This would be a massive shift in policy that will lead to other issues. Then there's the affordability issue that's been hampering house across the country for years. Jason and Adam examine what new trends that's causing in our present day.
And finally, don't forget to submit your video for the Empower Investor contest and win tickets to Profits in Paradise!
[5:48] What rent control ACTUALLY does
[8:47] Rent controlled areas always run short on housing because nobody wants to build there because of regulations
[16:37] Adam Frenza's 5 Year Plan
[25:14] How the Trump administration is responding to rent control movements
[27:16] How rent control creates a scenario like runaway inflation, and the road out is a rough one
[29:29] People are starting to realize that affordability is a national problem
[32:39] Rental property is one of the only businesses where people will happily give you 40% of their income
Sat, 14 September 2019
Visualization is an immensely powerful thing. What the mind can conceive and believe, the mind can achieve.
Because of the power of visualization, Jason went and found an expert who can help real estate investors get in the right mindset and, hopefully, set you on a path to an even better portfolio and life.
Fri, 13 September 2019
1281 FBF: Richard Vague, Private Debt Problems, The Next Economic Disaster, Why It’s Coming & How to Avoid It
Today's Flash Back Friday comes from Episode 494, originally published in March 2015.
In the introduction portion of the Creating Wealth show, Jason Hartman answers two voicemail questions left by his listeners. He then introduces Richard Vague as his guest for today's show. Richard Vague is one of the few economists who are currently talking about the problems of massive private debt. He is the author of The Next Economic Disaster and talks to Jason about China's economic problem along with some interesting facts and correlations about the US economy.
8:00 – Jason talks about the 6 ways the government can get out of its mess.
11:20 – Jason answers a listener voicemail question.
18:50 – A listener asks about 3D printing a house. Jason shares his thoughts.
24:30 – Jason introduces Richard Vague to the show.
29:15 – Richard talks about China's debt problem.
35:10 – Private debt growth leads to higher interest rates.
38:15 – Richard gets his stats by looking at all consumer and business debt.
42:30 – A lot of economists don't include private debt in their model.
49:00 – What should we do to avoid the next economic disaster? Richard explains.
51:10 – Quick recap, what are the stages of an economic crisis?
Mentioned In This Episode:
Thu, 12 September 2019
Jason Hartman talks with James Malinchak, #1 speaker coach & trainer and former Secret Millionaire on ABC (as well as this year's Profits in Paradise keynote speaker), about his time on the TV show as well as how people can take what they have, get the right mindset, and turn their life into a success. There are a lot of external forces on you in your life, but the response you have to all of them is strictly up to you.
[7:27] James' experience on The Secret Millionaire
[15:36] What are the traits that lead someone who is poor to become successful?
[18:22] In every situation you can either have excuses or results, and excuses don't matter
[22:05] The response you choose to tell yourself after an event is all that really matters
[25:38] What James will be talking about at the upcoming Profits in Paradise
[29:34] It is an absolute necessity to invest in yourself
Wed, 11 September 2019
1279: Warning Signs in the Economy & Banking on the People, Democratizing Money in the Digital Age by Ellen Brown, Web of Debt, The Public Bank Solution
Jason Hartman talks today about the news he's seen recently while avoiding Hurricane Dorian. That includes problems with pooled assets, taking out the management fees and industries that are taking a turn for the worse that show potential weakness in the real economy.
Then Jason talks with Ellen Brown, author of Banking on the People: Democratizing Money in the Digital Age, about the money supply, specifically as it relates to what we refer to as "Quantitative Easing". Ellen explains how she believes we can solve some of society's woes and why she isn't on board with Modern Monetary Theory.
[3:20] There are more lawsuits being filed over 401k fee abuse
[5:07] How much better would our economy be if insiders stopped skimming off the top?
[8:37] Workers under 35 are saying they're content with their pay
[11:56] The trucking and shipping industry is having some problems
Ellen Brown Interview:
[13:22] Quantitative easing needs to be changed to get money out into the real economy
[21:27] What Ellen means when she talks about "speculative markets"
[24:54] What does this mean for the average person?
[29:04] 80% of the population is carrying debt right now
[33:45] What is keeping Ellen from being a fan of MMT
Tue, 10 September 2019
1278: Home Buyers Giving Up & Self Made, Becoming Empowered, Self-Reliant & Rich in Every Way with Telemundo & Fox's Nely Galan
Jason Hartman and Adam begin the show discussing how half of the potential home buyers are currently throwing in the towel because they can't find a house in their budget. They're getting discouraged and losing hope for the future as well, causing a surge in renters. As an investment property owner, that puts you in a fantastic position.
Then Jason talks with Nely Galan, former president of Telemundo and author of Self-Made: Becoming Empowered, Self-Reliant and Rich In Every Way, about her journey up the corporate ladder and why she got in to investing in commercial properties. Nely took the dramatic step of leaving a solid, promising job in network TV to become employee #1 at a small startup called Telemundo. Nely explains how you can use your early jobs to prepare yourself for your own success and why sacrifice is necessary.
[4:39] Since the Great Recession homebuilders have just ignored investment priced properties
[7:07] One reason why Jason doesn't like owning a primary residence
[11:31] The number of adults who think they'll buy a home in the next year has dropped from 24% to 12% since the start of 2018
Nely Galan Interview:
[14:44] Make mistakes on other people's dime so you can succeed when you go out on your own
[19:34] Being employee #1 can be worth it
[21:09] Every job you do teaches you something that eventually leads to mastery
[24:07] Why Nely wrote Self Made
[27:59] You have to be willing to sacrifice something to get something better
Mon, 9 September 2019
1277: Empowered Investor Contest, NOI & Cap Rates with Frank Gallinelli & Self-Management with Property Meld's Ray Hespen
Jason Hartman and Adam start today's show with some more details about the exciting (and potentially very lucrative) contest that's going on called The Empowered Investor. You could potentially win a $3,000 cruise allowance and 2 tickets to Profits in Paradise!
Then Jason plays a clip from Frank Gallinelli where Frank explores two things that real estate investors need to understand, even if you don't use them every day: Net Operating Income and Capitalization Rates.
Finally Jason talks with Ray Hespen, co-founder and CEO of Property Meld, about how property owners can proactively close the problem areas that tenants and landlords have in order to retain the tenants longer. Learn how tenants like to be contacted in today's age, why they leave, and how Ray's software may be able to help you.
[2:46] How to enter the Empowered Investor challenge and win free tickets to Profits in Paradise
[5:55] Deadline for submissions is midnight EST, Monday September 23, 2019
[7:35] Frank Gallinelli presentation on Net Operating Income and Capitalization Rates
Ray Hespen Interview:
[21:33] What issues does Property Meld address to help the tenant?
[23:27] Around 1/3 of all non-renewals are due to poor maintenance experiences
[29:02] The strongest correlation between maintenance requests and renewals is speed, hands down
[31:35] Renters nowadays want to be texted, not called
Sat, 7 September 2019
Today's guided visualization journey takes us back to the very first week.
Fri, 6 September 2019
1276 FBF: Asset Inflation Keeping People Out of The Investor Class, Stagnation, Hard Money Lending, Wage Growth with Mike Zlotnik
Today's Flash Back Friday comes from Episode 837, originally published in May 2017.
This episode is very telling about the current and future state of the current US economy. Jason welcomes Tempo Funding Managing Director Mike Zlotnik to the show to discuss the what factors gave rise to and will ultimately tank the economy. As listeners to this program, you know real estate is the best class to hedge against inflation but if you also invest with institutional investors it may be time to fold your hand and become your own decision maker.
[03:30] Yield rate and Cap rate compression defined.
[08:01] After the 2008 crash the deal flow was abundant.
[10:04] Institutional investors get rewarded for deploying capital, not finding the best deal.
[15:04] Inflation is here and markets are softening.
[20:44] Stagflation is a bizarre scenario but it is likely to happen.
[29:19] Investors must prepare for the worst-case scenario.
[30:51] Tempo Funding provides short and long-term hard money lending.
Mentioned in This Episode:
Thu, 5 September 2019
1275: Fannie Mae's Chief Economist on Housing Market & Real Estate Dynamics in 300 Markets with Local Market Monitor's Ingo Winzer
Jason Hartman is back and talks with Adam today to discuss Fannie Mae's Chief Economist Doug Duncan's latest comments about the housing market. Not surprisingly, the huge lack of inventory is making a substantial impact. Jason and Adam break down how big an impact it is, what's causing it, and if there's hope on the horizon.
Then Jason talks with Ingo Winzer, founder and president at Local Market Monitor, about how his company is able to analyze 300 local markets and what elements are important for investors to pay attention to when examining markets on their own.
[6:29] The graying of America
[11:10] Getting into real estate might seem expensive now, but it also seemed expensive in the 70s, 80s, 90s, etc and it's turned out pretty good
[13:16] The labor shortage in construction since the Great Recession is going to make ramping up construction difficult
Ingo Winzer Interview:
[19:08] Rents behave differently from prices because rents tend to move with income
[25:12] What Ingo bases his price forecast on
[30:49] How do you factor in retired people and those in the gig economy when factoring in the job market
[35:05] You need to figure out where the concentration of renters are in your market before you invest
Wed, 4 September 2019
In place of a voiceless Jason Hartman, Adam takes the reins today to discuss some articles that have come across his eyes discussing home prices in various areas of society and why they shouldn't be as big a surprise as the media seems to think they are. He also touches on the possibility of the government offering a 100 year bond.
Then Jason talks with Patri Friedman, Executive Director of The Seasteading Institute, about creating new countries using the seasteading technique. Patri discusses how the concept would work in today's environment and why it's not absurd to think of a country being created on the water. It's coming sooner than you expect.
[2:34] Home prices in driveable areas are now outpacing those in walkable areas
[4:39] Government considering offering a 100 year bond
Patri Friedman Interview:
[8:36] What is seasteading?
[13:28] Why not just buy land from a country rather than doing everything out at sea?
[17:28] Patri's goal is seeing governments competing for citizens by treating them best
[21:04] How do you deal with security when you're in the middle of the ocean?
[25:25] What are these seasteads going to do for currency?
Tue, 3 September 2019
1273: The Ultimate Self-Directed IRA, Using Self-Directed IRAs & Solo 401ks To Invest In Real Estate, Bitcoin, Ethereum, Cryptocurrencies, Gold & More with Jeff Astor
Jason Hartman talks with Jeff Astor, VP of Business Development at Broad Financial and author of The Ultimate Self-Directed IRA:: Using Self-Directed IRAs & Solo 401ks To Invest In Real Estate, Bitcoin, Ethereum, Cryptocurrencies, Gold, Private Businesses, Startups, Exotics & Much More, about how to invest in various assets at the "arms length" that the tax code requires. Jeff explores some unique investments clients have made that satisfy the legal requirements, as well as explaining the difference in the 2 types of self-directed IRAs.
[6:43] What are "exotic" investments and how you keep your investments "at arms length"
[9:45] There are 2 types of self-directed IRAs, the custodial model and the checkbook model
[13:52] Finding financing for IRAs since you need a non-recourse loan
[17:10] Do people set up multiple LLCs inside their IRA to get even more asset protection?
[21:44] Make sure you do your research on self-directed IRA companies, because custodial companies rely on trust
[24:50] Can you take possession of precious metals if you purchase them through a self-directed IRA?
Mon, 2 September 2019
1272: Developer Trends, Home Ownership Rates & Institutional Investors with John Burns RE Consulting's Chris Porter
Jason Hartman talks with Chris Porter, Senior Vice President & Chief Demographer at John Burns Real Estate Consulting, about what trends their company has been seeing. There have been some profound shifts in the way that Americans want their communities, what they're looking for in a house, and whether they even WANT to own a house.
[4:01] There's an amazing amount of infrastructure in our world that has been thought out to keep us safe
[6:30] The history of labor day and why being an income property investor is a way to let yourself CHOOSE to labor
Chris Porter Interview
[10:08] The labor shortage in construction right now is a great opportunity for new technology to come into the market
[15:28] Some developer trends going on right now
[19:27] The current housing trends of Millennials and Baby Boomers
[22:54] Are the insititutional investors here to stay?
[27:28] Chris' prediction on home ownership rates has been somewhat right. Why he thinks it wasn't completely acurate
[32:21] Why the way generations are widely defined make no sense
Sat, 31 August 2019
Today is the 13th installment of our guided visualization journey.
Fri, 30 August 2019
Today's Flash Back Friday comes from Episode 858, originally purchased in July 2017.
Captain Gary Pinkerton joins Jason to share his story of how investing in income property gave him financial freedom and he describes how he used a life insurance policy to fund his investments. Later in the show, Jason and Gary answer listener questions about self-management, markets and taxes received as part of the Apple Airpod contest.
[01:59] A few things you probably didn't know about submarines.
[05:09] Gary shares the most important lessons he has learned about income property investing.
[08:50] Leveraging prudent debt and getting credit for the appreciation is a 20% ROI.
[12:47] Gary wanted to go to work and make money on his own terms.
[16:51] Increase the efficiency of your properties by funding them in a different way.
[23:26] Looking at the benefits of using a life insurance policy to fund your investments.
[29:00] Self-managing income properties may give your tenants a better experience so they inhabit your property longer.
[32:23] Juan wants to know how to find the best property management company and how to set up his tax structure.
Mentioned in This Episode:
Thu, 29 August 2019
1270: Sensible Investing & Walter E. Williams, American Contempt for Liberty, Race & Economics, Liberty Versus the Tyranny of Socialism
Jason Hartman talks with Walter E Williams, Professor of Economics at George Mason University and author of American Contempt for Liberty, about what is going on in our society today. America has become a country of people who hate liberty and want to take from others to give to themselves or others who they deem need it more. There seems to be an unwillingness to accept that people earn more than others and thinking that the government needs to step in and play a role. Walter explains to Jason how we can solve our problems by telling the government to get out of the way more than telling them to help.
[2:34] Make sure you're investing in things that make sense THE DAY YOU BUY THEM
Walter E Williams Interview:
[7:46] Do United States citizens really have contempt for liberty?
[13:41] Has the Trump administration turned the tide at all?
[17:03] Is a wealth tax fair?
[21:51] Politicians are doing exactly what we elect them to do
[27:05] The only way we're going to solve our nation's problems
Wed, 28 August 2019
Jason Hartman begins today's show discussing the ongoing phenomenon on Wall Street of people investing so much money into IPOs when the company has proven that they don't have a business plan that works.
Then Jason talks with Phil DeMuth, co-author with Ben Stein of the book The Overtaxed Investor: Slash Your Tax Bill & Be A Tax Alpha Dog, about how investors can set themselves up for a lower tax bill. Phil and Jason also discuss the idea of investing in Opportunity Zones and why Phil is so passionate against the Secure Act.
[2:20] There's a cottage industry spinning off of Airbnb of tech companies telling municipalities which properties are violating their ordinances
[8:39] The ridiculousness of the stock market and tech startups
Phil DeMuth Interview:
[13:55] How are investors being overtaxed?
[18:18] Generating tax liabilities by trading
[22:35] Make sure to put your growth asets in your taxable account
[26:14] Phil's thoughts on Opportunity Zones
[28:58] Why the debate over the Secure Act is important
Tue, 27 August 2019
Jason Hartman and Adam start off today's show discussing the growth of rent and home values across the nation. They've both been going up, but at different speeds. So what does it mean for you?
Then Jason plays a clip from Garrett Sutton discussing what asset protection is NOT. It's easy enough to think about what asset protection can do for you, but it can't do everything.
Finally, Jason and in-house economist Thomas discuss the phenomenon of MMT, Modern Monetary Theory, and why they don't believe it's the great thing that many on the left believe it to be.
[6:02] Rent growth and property value growth aren't moving in perfect sync
[9:39] There's new construction in Atlanta that is through an A provider team
[14:28] Take part in the latest contest Jason is having, because there are some great prizes
[17:36] What you need to do for the video contest
[22:50] Garrett Sutton's What Asset Protection Is NOT
[30:21] Does MMT say you can print money with no inflation?
[35:38] There are several things that would make MMT invalid
[38:18] MMTers are right that government spending happens before taxation
Mon, 26 August 2019
Jason Hartman dives into the idea of negative interest rates and WHY they would happen and how people respond to them. Then he finishes off his analysis of Dan Kennedy's idea of the mass affluent and how the middle class has been (and continues to be) impacted by it in today's world.
[2:50] Banks charging negative interest rates
[8:50] Negative interest rates are trying to bring future consumption to present day
[11:01] The middle class is disappearing, and there's a danger of sliding down the socioeconomic ladder if we don't grab hold and start pulling yourself up
[14:52] Inflation always hits the poor the hardest
[19:22] The poor and lower middle class are also targets for sectors like payday lending, which keep them down
[23:13] When new generations (like Millennials) can't enter the investor class early in life, it makes a MASSIVE difference over their lifetime
[26:57] Investing is a relative game
Sun, 25 August 2019
Jason Hartman is excited to announce, with his Local Market Specialist, that there is once again property available in the Atlanta, GA market. Featuring all new construction, with cash-on-cash returns estimated to be around 10%, the Local Market Specialist was able to purchase an off-market land contract to control the neighborhood, including the HOA. All properties come with 2/10 warranties. Contact your Investment Counselor today to get hold of some of these limited properties.
Sat, 24 August 2019
Today is the 12th installment of our guided visualization journey.
Fri, 23 August 2019
1266 FBF: Prices & Rents vs Interest Rates, Selling The Seller On You, Property, Market & Provider Quality
Today's Flash Back Friday comes from Episode 848, originally published in June 2017.
Investment Counselor and Local Market Specialist Liaison, Carrie joins Jason to see if he can correctly predict the effect the rise in interest rates will have on the US economy. Jason reminds us the Feds don’t directly impact mortgage rates but by directly impacting short-term rates all rates will be affected. For those of you who have income properties, the higher interest rates will put upward pressure on rents.
[09:13] What does the spike in interest rates mean for investors?
[15:27] Higher interest rates will put upward pressure on rents and lessen the concentration of wealth.
[19:37] Local Market Specialists and Investment Counselors are always working in the client's best interest.
Mentioned in This Episode:
Thu, 22 August 2019
Jason Hartman discusses the recently deceased Dan Kennedy's work relating to the marketing shift of businesses toward the middle class. Over the past few decades there has been a distinct hollowing out of the middle class, which has created a massive opportunity for real estate investors. This persists to this very day. Jason explores Dan's idea of when the shift occurred, how it's impacting our world, and whether it's something that politicians will ever deal with.
[6:28] Post-World War 2 we saw marketing start being targeted at the middle class
[10:21] Median home listings and median home sale price is showing that higher priced homes just aren't selling right now
[22:24] Politicians tend to be friendliest to real estate because of the MASSIVE supply chain
Wed, 21 August 2019
Jason Hartman talks with Matt Curtis, founder and CEO of Smart City Policy Group, about the state of short-term rentals in today's society. Matt explains why he thinks that no matter what people in power do, they won't be able to stop the movement that is short-term rentals. Matt also discusses what he expects for the market when the economy inevitably sinks into a downturn and people stop taking so many vacations, and why a societal shift is key to that.
[8:29] Technology is leading us closer to a Jetsons like world
[11:07] Short-term rentals seem like they're going to win out over areas that are currently resisting
[14:21] It's not hard to see why some areas of the country are resistant to the idea of short-term rentals
[18:06] Are short-term rentals squeezing renters out of the higher end homes?
[22:28] Commercial mix-use multifamily seems to be an area that there's no qualms using for short-term rentals
[24:38] What happens to short-term rentals when the next recession hits?
Tue, 20 August 2019
1263: Foreign Real Estate Buyer Update & Investing In Non-Performing Notes & Loans with DeAnn O'Donovan
Jason Hartman begins today's show giving an update on the state of foreign buying in the US real estate market. Playing a clip from Lawrence Yung, Chief Economist at the National Association of Realtors, and commenting on where the money is flowing from and where it's headed to, and how it compares to last year.
Then Jason talks with DeAnn O'Donovan, former President & CEO of AHP Servicing and former Executive VP and Chief Administrative Officer of Wintrust Mortgage, about the practice of investing in non-performing notes and loans. DenAnn explains what she looks for when considering investing in loans, what positions she's comfortable taking, and where you can still find deals in today's marketplace.
[2:46] Is the United States market becoming less attractive to international buyers?
[7:26] The top 2 countries investing in US real estate are China and Canada. China accounted for $13 billion of US real estate purchases, Canada $7 billion
DeAnn O'Donovan Interview:
[13:39] Does it matter whether you're in first or second lien position?
[17:32] Where do you find the deals in today's market?
[27:54] Are there multiple categories of servicers available?
Mon, 19 August 2019
Today's episode begins with Jason Hartman discussing how there's a new startup that's designed to help you make money on your property in a new way. There are more and more ways to capitalize on the assets you own, but you can't do it unless you actually own the asset. If you're just reading about them and not doing anything about it you're cheating yourself.
Then Jason talks with Garrett Sutton, Rich Dad Advisor and author of Loopholes of Real Estate, about some recent Supreme Court decisions that will impact your life in a positive way. No matter what you think about the political division in the court, there are some things on which everyone can agree, and that's the case with these two cases. They also discuss the pros and cons of Series LLCs and the Economic Berlin Wall Jason's been lamenting for years.
[3:18] A new startup is allowing people to rent their house/rooms/couch/etc for hours, not days
[8:05] You can make money by utilizing assets that were formerly dormant
[11:38] If you don't own the asset you can't take part in the money making, so get the asset!
Garrett Sutton Interview:
[15:20] The Supreme Court unanimously cracked down on excessive civil forfeiture,
[19:08] Why you should actually CARE about the civil forfeiture decision
[22:02] Another unanimous Supreme Court decision that protects trusts
[27:27] California is trying to create an Economic Berlin Wall to avoid a brain drain
[31:40] There's a new development for Series LLCs
[36:08] There's not a lot of case law for Series LLCs, which can make it a sketchy area
Sat, 17 August 2019
We can create our future by visualizing it repeatedly with significant detail. Jason Hartman discusses how you can improve your life by using this tool.
Fri, 16 August 2019
Today's Flash Back Friday comes from Episode 854, originally published in July 2017.
In between activities during the Oklahoma City JHU Live event is a great time to record a podcast with new income property investors. David & Gina Nelson share their story of the life-changing decisions that led to investing in real estate with Jason. David & Gina recognized staying in their corporate positions and only investing in the stock market wouldn’t get them where they wanted to be in life.
They convey their appreciation for the transparency and support they have received from the Jason Hartman Investment Counselors and share their advice on how you too can have the diversified financial future you deserve.
[01:40] David & Gina wanted to take control of their lives and build their wealth by investing in income properties.
[06:15] You are never too old or too young to start investing in your future and real estate.
[09:20] The portfolio builder game is a great way to find out what type of investor you are.
[12:03] The Nelson's plan to retire next year and use income property as their wealth vehicle.
[16:59] The value in understanding the linear, hybrid and cyclical markets.
[20:43] David & Gina recommend finding a mentor and listening to podcasts to educate yourself.
Mentioned in This Episode:
Thu, 15 August 2019
Jason Hartman kicks off this 10th episode discussing the furthering trend of people fleeing high tax places like California and New York to tax favorable places such as Florida. It's becoming a more and more common thing and states need to understand this before they run into even more fiscal difficulties.
Then Jason goes off topic with client Rabbi Evan Moffic, author of The Happiness Prayer: Ancient Jewish Wisdom for the Best Way to Live Today. The two discuss why the bible actually promotes wealth (and what we should DO with that wealth), as well as what gives people true happiness.
[2:47] Florida is bringing in billions of dollars as people flee high taxes
[8:45] California is passing laws to increase revenues and are becoming predatory on their citizens
[13:56] There's no starter homes being built, so your properties won't have any new competition
Rabbi Moffic Interview:
[17:26] Human beings are creators, and if you don't get to create you don't usually feel fulfilled
[19:59] Pleasure and happiness are two completely different things
[24:47] Plant a tree whose shade you will never sit under
[27:34] When you're feeling sad the best thing you can do is do something nice for someone else
[31:19] The bible is a pro-wealth product that teaches us to use our wealth to serve others
Wed, 14 August 2019
Jason Hartman finishes his conversation with investment counselor Doug about real estate and PE ratios. The two discuss the importance of analyzing RV ratios in markets to discover whether a bubble is forming (or might already be formed) but also the dangers of relying strictly on those RV ratios.
[2:38] How to think about Cap Rates
[5:55] Commercial property doesn't have enough risk premium right now
[9:34] Real estate has a lot of embedded risk protection a lot of people don't realize
[15:16] The thing that is going to drive the next housing downturn will be when we see rising mortgage rates
[17:40] The 1% RV is for a turnkey rehab. New construction isn't getting 1% right now
[21:16] When your RV hits .5 you're looking at a bubble
Tue, 13 August 2019
1258: BRRR Method, Manufactured Homes, Self-Management & Future Expectations Impact on the Housing Market
Jason Hartman talks with 2 investment counselors in today's episode. First he talks with Adam to discuss the popular BRRR investment model (Buy, Renovate, Rent, Refinance) and why manufactured homes have a bad reputation and why that needs to change.
Then Jason talks with investment counselor Doug about the importance of future expectations when looking at any market, including the real estate market. Just like in the stock market, future expectations drive a lot of value for real estate, especially in cyclical markets. The second half of this conversation will air tomorrow.
[4:13] BRRR proponents don't ever tell you about their tax liabilities or their hunt for a deal
[8:05] We should look upon manufactured homes a lot better than we do right now
[10:43] The online housing kits are currently way more expensive than they pretend to be
[14:38] Doug's experience using Cozy so far
[19:26] You make money in life by adding value
[23:39] When you take the manager out of the equation you can just the property on the property alone
[26:08] The importance of future expectations
[29:53] When expectations decrease it's not just a little drop, it's a spiral
Mon, 12 August 2019
Jason Hartman takes today to play a live clip from the 2019 Meet the Masters of Income Property. Sunday afternoon is a time many people use to purchase properties from providers, leaving the room a little light on people. In this presentation, Jason updates his Inflation Induced Debt Destruction example from the high interest rate period he originally used into the lower interest rate environment that people who purchased in the late 80s have experienced.
[5:01] Join Jason and go cruising (with good internet)!
2019 Meet the Masters Presentation:
[10:21] Asset price inflation isn't measured, but it probably should be
[14:19] Life is really a game of staying power
[17:35] Every decision we make is a decision to improve our condition
[21:00] Inflation Induced Debt Destruction from 1989 - 2018
[28:43] What does a lower inflation rate period do to IIDD?
Sat, 10 August 2019
Today is the 10th installment of our guided visualization journey.
Fri, 9 August 2019
1256 FBF: Indianapolis Market, Property Management Best Practices & Tenant Screening with American Apartment Owners Association Rent Recovery Service Jeff Cronrod, Part 2
Today's Flash Back Friday comes from Episode 964, originally published in February 2018.
Jason Hartman kicks off today's episode with some big cryptocurrency news out of Venezuela and Poland this week that show both strength and weakness for the market, plus producer Adam interviews one of the Indianapolis Local Market Specialists about what makes Indy a good place to invest.
Then Jason finishes up his interview with Jeff Cronrod. This time they focus on best practices for property management and how to properly (and legally) screen tenants.
[2:07] There's better ethics involved in taking the long term approach
[7:07] Poland's Central Bank paid YouTubers to slander cryptocurrencies
[9:08] Venezuela's massive oil based cryptocurrency
[10:21] Indianapolis Market Profile from a Local Market Specialist
Jeff Cronrod Interview, Part 2:
[20:02] Jeff's property management best practices, and proper tenant screening
[24:18] What sort of reports are available for landlords?
Thu, 8 August 2019
Jason Hartman and Adam start off today's show discussing how rates have allowed more and more people to start refinancing their homes, but also how federal mandates are allowing them to pull less money from their homes. This is having the effect of both putting more money into the economy but also keeping the housing market safer than it was before the Great Recession.
Then, Jason finishes his conversation with Dr. David Kelley, founder of The Atlas Society and current Chief Intellectual Officer for the society, about the degradation of our society where people are viewing minimum wage jobs as careers and the dangers of our entitlement society.
[2:09] There are microscopic creatures that can survive in outer space and some of them ended up on the moon thanks to an Israeli probe
[7:53] Lower rates have made 8.2 million homes available for refinancing
[10:19] A lot of people will be making a lot of money off the increase in refinances, so it's good for our economy
Dr David Kelley, Part 2
[16:26] We have degraded to the point that people are considering minimum wage jobs as careers
[20:41] Entitled mentality is toxic to society
Wed, 7 August 2019
1254: Misleading Stats & Value of Labor v Capital with Dr. David Kelley, Ayn Rand & The Atlas Society
Jason Hartman and Adam start today's show discussing the size of economies across the globe and how some countries (such as Japan) are able to have such large economies with very few natural resources. They also explore a potentially misleading real estate stat.
Then Jason talks with Dr. David Kelley, founder of The Atlas Society and current Chief Intellectual Officer for the society, about the ideals of Ayn Rand and why the economic principles she laid out during her life are still applicable today, but also about how Dr. Kelley has expounded on those thoughts. They also discuss the current entitlement mentality in the United States and what dangers that presents.
[3:05] Not surprisingly, the US and China make up the largest 2 economies in the world, but some of the others are surprising
[7:49] Just because you have natural resources doesn't necessarily make your economy thrive
[13:29] Misleading mortgage delinquency stats
David Kelley Interview, Part 1
[17:12] What is the Atlas Society?
[22:55] Marx's ideals have failed time after time but people keep going back to them. Why?
[25:37] The value of labor vs the value of capital
Tue, 6 August 2019
1253: Mother of All Bubbles? & Best Cities for Business Growth by Anita Campbell, BizSugar, Small Business Trends & Visual Marketing
Jason Hartman starts today's show comparing asset class sizes to see if cryptocurrencies really are the biggest bubble out there. It's always important to ask the question: Compared to what?
Then Jason talks with Anita Campbell, founder and publisher of Small Business Trends, about what markets are currently the friendliest to entrepreneurs. Some rankings are surprising and there's a big surprise when it comes to entrepreneurs in rural areas. They also discuss the potential impacts of minimum wage on small business.
[2:14] A misnomer about the real estate market
[7:44] Jason's latest binge-worthy show is educating him about money and making a statement about governments and central banks
[10:06] Comparing asset class sizes
[14:24] Derivatives are the biggest market BY FAR
Anita Campbell Interview:
[18:23] Some of Anita's rankings for best cities for entrepreneurs really suprised her
[21:13] How Anita's company was able to use the US Census to help in the rankings
[24:09] Technology has allowed rural areas to start flourishing as entrepreneurial havens
[26:40] Does having more entrepreneurs in an area make the market more or less stable?
[32:54] How the movement to a $15/hr wage is impacting entrepreneurs
Mon, 5 August 2019
1252: America's Wage Increase & Index Home Prices, New Mortgage Product by Home Diversification Corp Marc Biron
Jason Hartman takes on the mainstream media's coverage of our economic situation by pointing out that Americans have actually seen a larger wage increase than originally believed. Not many publications like to talk about it and even fewer like to credit Trump, but maybe it's time they start doing so.
Then Jason talks with Marc Biron, founder and CEO of Home Diversification Corp, about his product that is intended to help homeowners diversify their market risk in their own home purchase. The product is intended to help protect homeowners from downturns in the housing market in their local zip code by indexing it to the national housing market. Listen in as Marc explains why it would make sense for homeowners and how it works.
[3:44] American wages are rising more than we realized
[8:56] The biggest thing in the media is that they don't say
Marc Biron Interview:
[11:04] How Marc's mortgage product can help diversify market risk
[15:22] Marc claims his product is 42% more stable than the average housing market
[19:38] A sample case of how the product works
[23:07] Home Diversification uses the Zillow statistics for national home price indexing
Sat, 3 August 2019
Today is the 9th installment of our guided visualization journey.
Fri, 2 August 2019
1251 FBF: Screening, Rent Collection, & Lease Guarantee with American Apartment Owners Association Rent Recovery Service Jeff Cronrod, Part 1
Today's Flash Back Friday comes from Episode 963, originally published in February 2018.
There's a disease infecting millions of Americans, but few people are addressing it. That disease? The entitlement disease. Jason Hartman looks at the symptoms of the disease, and how a simple change in viewpoints can bring a person out of that spiral.
Then Jason talks with Jeff Cronrod, founder of the American Apartment Owner Association & founder of Rent Recovery Service, about his new program called Lease Guarantee, and how landlords need to take a more aggressive approach toward tenants who don't pay.
[4:39] The dangers of the entitlement disease
[8:14] When you take all the advantages of real estate for a few years, it's hard to unwind
[13:30] What happens when you view your life like you're the source
[19:09] The simple key to success in business
Jeff Cronrod Interview:
[22:02] What is Lease Guarantee?
[24:18] How much does the Lease Guarantee cost and what exactly does it cover?
[28:32] The steps you have to go through when a tenant misses their rent payment
[31:40] What judgement do you need to get for Lease Guarantee to pay out?
Thu, 1 August 2019
1250: 1031 Exchanges & The Opposite of Hate, A Field Guide to Repairing Our Humanity by Sally Kohn, CNN, FOX, State of Resistance
Today's off-topic 10th episode starts off with Jason Hartman explaining how 1031 exchanges have helped his portfolio grow more than any other tool, as well as how to view your tenants rent in a way that will make you feel really good.
Then Jason talks with Sally Kohn, CNN political commentator, host of The State of the Resistance podcast and author of The Opposite of Hate: A Field Guide to Repairing Our Humanity, about why there's so much hate in our country at the moment and how we need to continue acknowledging problems and working to get better.
[3:40] The power of a 1031 exchange has been a godsend for Jason's personal portfolio
[8:02] Your tenants are working to pay you ~40% of their work hours. That's more than they work for anyone else.
Sally Kohn Interview:
[12:31] Technology makes us feel more anonymous, which isn't always the best thing
[15:10] Does the US deserve credit for being better than the rest of the world?
[20:01] What definition of "hate" Sally's working from
[24:12] Most people don't think they're hateful, they believe "those people" are hateful so the things they do are justified
[27:55] We have been taught throughout history that men should be in positions of power, which is a powerful thing to have to break through
Wed, 31 July 2019
Jason Hartman starts today discussing the 8th wonder of the world, compound interest. It's a truly powerful thing that makes massive differences to your portfolio.
Then Jason talks with in-house economist Thomas to discuss housing payments adjusted for inflation. Thomas took Jason's first property he purchased and adjusted the payment it would have been to today's dollars to see how it correlated. The two also discuss negative yields and how much further cyclical markets have to fall.
[4:43] Jason's old purchase of a mortgage note that didn't go so well, but the amount he's owed now shows the power of compound interest
[7:36] An example of compound interest using 4 $100,000 homes
[14:32] Robert Shiller believes we are on the verge of a recession, but Jason doesn't agree with his reasoning
[18:51] Housing payments adjusted for inflation is significant
[22:41] Millennials keep telling Thomas they're waiting for home prices to drop
[27:07] 25% of investment grade bonds have negative yields now
Tue, 30 July 2019
1248: Housing Price History, Evaluating Real Estate Investments & Foreign Investor Assistance for American Real Estate with Stateside APM's Howard Jennings
Jason Hartman and Adam start today's episode detailing the price history of a home in Port St. Lucie, FL. The effects of the financial crisis and the recovery afterward are truly astounding and it gives us an idea of where we might be in the housing recovery.
Then Jason has a short clip of Frank Gallinelli's, a friend of the show, describing how to properly evaluate real estate deals to make sure you're getting a good deal.
Finally Jason talks with Howard Jennings, Managing Partner at Stateside APM, about how entities can help foreign real estate investors, as well as how those same foreign investors can save themselves money in creating those entities and avoiding double taxation in certain areas.
[3:23] The incredible price history of a home in Port St. Lucie, FL
[8:32] Jason's been involved in somewhere around 10,000 real estate transactions either personally or through his companies
[10:26] Frank Gallinelli on How to Evaluate a Real Estate Investment
Howard Jennings Interview:
[24:18] Do foreign investors need to have entities like an LLC?
[27:12] Some states have higher fees than others, and Canada can even tax you twice
[31:18] Services provided by Stateside APM
[38:45] Nearly every decision in life comes down to instant gratification vs delayed gratification
Mon, 29 July 2019
Jason Hartman and Adam start off today's show discussing a stat they saw saying that 37% of US homes are currently "free and clear" and what that could mean to housing markets when the next market downturn comes, especially to your income property.
Then Jason talks with client Drew Baker about how his self-management has helped him put $8,000 back in his pocket, having your tenants saving you money, and what Facebook is doing with their cryptocurrency venture.
[2:39] 37% of homes in the US are "free and clear"
[5:30] Why the amount of "free and clear" homes in your market matters to your investment properties
[8:41] Alexa Skill Blogcast
Drew Baker Client Case Study:
[12:54] Drew just calculated how much money he's saving in his portfolio now
[20:53] Facebook's foray into crypto could be a more interesting venture since they have an audience of billions already
[25:41] Facebook shut off access to other cryptos while they were prepping their own
[28:40] How Drew's tenant saved him hundreds of dollars on his new water heater
[32:30] Pick which property is giving you the least trouble and take control while things are calm, not in the middle of repairs
Sat, 27 July 2019
Today is the 8th installment of our guided visualization journey.
Fri, 26 July 2019
Today's Flash Back Friday comes from Episode 938, originally published in January 2018.
Jason Hartman kicks off the episode talking with someone who's about to set a new standard at the Meet the Masters conference this weekend. Journey Captured, a Journey tribute band, will be performing Saturday night at the first ever Meet the Masters Concert. Jason talks with Bass player Giorgio Tupanjanin about his musical training, why he plays Journey, and what to expect at the concert.
Then Jason finishes his client case study with Sue & Gary Pinkerton. This time Sue offers some tips on self-management, the frustratingly fragmented (yet helpful) nature of real estate investing, and why you can't consider anything a passive investment.
[1:59] A Journey tribute band will be playing at Meet the Masters
[3:50] Why Journey for a tribute band?
[6:28] Is jazz music one of the most technical styles out there?
[9:51] How Journey found their current lead singer
Pinkerton Case Study:
[15:16] Sue's tips on self-management
[18:52] The fragmented nature of single family real estate investing is frustrating
[22:13] There is NO SUCH THING as a passive investment
Thu, 25 July 2019
Jason Hartman and Doug get together today to discuss some of the statements that Warren Buffett has made in regards to investing in real estate. Specifically they examine his interview about his $150,000 home purchase that turned into an $11,000,000 property and his thought of how he wished there was a way to buy and manage thousands of single family homes.
[4:29] The power of the 30 year mortgage, explained by Warren Buffett
[9:10] Your returns when you lever equity can be really good, but when a tenant is paying your mortgage then it's even better
[14:33] Don't miss the market because you're waiting for a dip
[19:48] Time heals wounds, especially in real estate
Wed, 24 July 2019
1244: Investigating Big Tech Companies & Andrew Yang, Presidential Candidate on Universal Basic Income, Smart People Should Build Things & War on Normal People
Jason Hartman starts today's show celebrating the Department of Justice's decision to start investigating the big tech companies business practices, something he's wanted them to do for a long time now.
Then Jason talks with Democratic Presidential Candidate Andrew Yang about some of his policy proposals, including the huge idea of Universal Basic Income, the erradication of income tax and the implementation of a VAT.
[2:10] Jason is excited that the DOJ is finally investigating the big tech companies
Andrew Yang Interview:
[6:11] How Universal Basic Income is different than the welfare state and why libertarians would support it
[9:43] Would income taxes go away if Andrew's VAT goes into effect?
[14:28] Andrew supports UBI because automation is taking away so many jobs
[19:12] The war on normal people
[25:38] How the UBI will offset any deficit it creates
Tue, 23 July 2019
Today's episode is a live speech from the 2019 Meet the Masters of Income Property event. Hear the local market specialist discuss why he got into the Florida markets and how he's making properties work in the market. New construction and short-term rentals can work, if you do it right.
[6:45] Some of Jacksonville's economic rankings
[9:42] New construction has been the main focus in the market
[12:55] The different models available
[20:48] The average construction time is about 6-8 months, but you don't need a construction loan
Mon, 22 July 2019
Jason Hartman and his mom take today's episode to review the book The American Jubilee: A National Nightmare is Closer Than You Think, as well as discussing the impact of loan forgiveness and some self-management strategies that can save you money and headaches when it comes to repairs and tenant retention.
[2:05] Jason's mom's takeaway from the book The American Jubilee
[4:51] The middle class is getting crushed today more than they ever have in American history
[8:05] You can use debt as a strategy
[11:56] Impact of the bank holiday
[14:25] Student loans are being packaged and sold to financial firms just like liar loans were
[19:17] The federal government can nationalize your stock and bond portfolio a lot easier than your property
[23:26] Turnover can be expensive, but keeping tenants for too long could mean your rents are too low
[27:54] The longer your tenant is there the more they treat it like their own home
[32:02] A recommendation to reduce your insurance prices
Sat, 20 July 2019
Today is the 7th installment of our guided visualization journey.
Fri, 19 July 2019
Today's Flash Back Friday comes from Episode 971, originally published in March 2018.
Jason Hartman starts off the show discussing how home sales are strong, even if they're a lagging indicator, and where exactly they're really taking off.
Then Jason talks with client Brandon Cook, a young member of the Venture Alliance Mastermind, about his journey investing in real estate. Brandon is currently the owner of 6 properties and is looking forward to more, and talks about breaking through the initial hurdle of investing.
[2:33] Home sales are very strong, but remember they lag
[4:57] A suprise in the hottest housing market category
[11:41] Jason's latest book recommendation: The Effective Executive
Brandon Cook Interview:
[16:35] Brandon discovered Creating Wealth and started listening at Episode 48
[22:05] The first one is always the hardest
[30:41] What has Brandon learned on his investment journey
[33:20] Introducing the Jr Venture Alliance Mastermind membership!
Thu, 18 July 2019
1240: Investor Mindset & DuckDuckGo Founder, Super Thinking Mental Models & Traction, How Any Startup Explosive Growth by Gabriel Weinberg
Jason Hartman and Investment Counselor Adam start off today's show discussing the mindset of investors that needs to change. The whole idea of a "discount" isn't a reliable methodology for investors, things should be viewed in a win-win lense.
Then Jason talks with Gabriel Weinberg, founder of DuckDuckGo and author of Traction: How Any Startup Can Achieve Customer Growth and Super Thinking: The Big Book of Mental Models, about how you can use some of the mental models to help you achieve the returns you desire. They also touch on the problem of achieving privacy in today's world and how DuckDuckGo helps in that.
[3:31] As an investor you don't have to get things at a discount, you need to get them at fair prices
[5:29] You don't necessarily get the fantastic deal the day you buy it, you get a good deal at the beginning and it becomes fantastic over time
[8:14] Join Jason on the upcoming cruise
Gabriel Weinberg Interview:
[10:34] What is Super Thinking?
[15:06] The Mental Model of Forcing Function
[18:58] The model of Deliberate Practice
[23:47] Beware of Hindsight Bias
[27:35] To really get outsized returns you need to make a bet on the future
Wed, 17 July 2019
Jason Hartman talks with Gary Boomershine, real estate coach, real estate investor and founder of REIvault, about the differences between real estate investors and a real estate entrepreneur, as well as ways that you can protect yourself from inflation. Gary and Jason discuss the great part of buy and hold investing and what Gary sees as the future for the economy and real estate.
[2:51] What is a real estate investor?
[6:50] Gary used to flip houses but now regrets every house he ever sold
[12:07] Gary's experience as a hard money lender
[18:15] Gary's take on the VRBO market
[24:56] First position lending can be a hedge
[30:54] Right now Gary's a bit pessimistic about the market and is taking some chips off the table, while some of his cohorts are going full in
[33:21] The 3 areas Gary believes need to be very careful in today's market