Creating Wealth Real Estate Investing with Jason Hartman

In this episode, Jason outlines the two simple principles that alert an investor to an overvalued market. He explains the rent to value ratio and construction cost approaches and how the methods are applied to the linear, cyclical and hybrid markets. Jason also explores the benefits gained by experienced investors who use the proper metrics to analyze properties versus an immature investor who follows the current trend.

 

Mark your calendars for July 8th and 9th for the upcoming Oklahoma City Property Tour and JHU Live Seminar.

Key Takeaways:

[02:20] Jason explains why capital appreciation is attractive to the amateur investor.

[07:54] How do you know if the real estate market is overvalued?

[14:36] The self-storage facility purchase that wasn't meant to be.

[23:09] The comparison approach, the income approach and the construction cost approach are the 3 basic ways properties are valued or appraised

[23:50] The Rent to Value ratio is the current value versus the rental income.

[26:56] The Cap Rate is not a good metric for residential real estate investing.

[28:15] Using the Debt Coverage ratio as an investment metric to protect your assets.

[33:34] The Oklahoma City Property Tour and JHU seminar will be on July 8th and 9th

Mentioned in This Episode:

Renter’s Warehouse - Get 3 free months of property management with this link.

Jason Hartman

Real Estate Tools


Jason welcomes Elisabeth Embry to the podcast to discuss their new podcast! Women Investing Network or WIN will be co-hosted by Jason and Elisabeth and will focus on unique opportunities for women investors from a woman’s point of view. Elisabeth has a large income property portfolio and understands how to analyze the data necessary to make solid real estate investments in linear markets. They also discuss cash-on-cash return, Loan to Investment ratios, the Trump presidency and tax plan and the Seattle market.

Key Takeaways:

[02:21] Information on the new Women Investing Network podcast.

[04:40] Cash-on-cash Return explained.

[07:59] Analyzing the data to uncover the true ROI of a property.

[12:09] The 1031 exchange is yet another beautiful facet of investing in income properties.

[13:31] Trump tax cuts and Jason's theory of relativity.

[20:08] Elisabeth and Jason banter about Trump's presidency and the economy.

[26:00] Is a bubble coming to the Seattle market?

[29:10] Using the Risk Evaluator to determine the Land to Improvement Ratio.

[30:27] Two reasons investing in a linear market is a lower risk for investors.


If you are using microeconomics to plan for your future you may be ready to sell your assets and buy a “Preppers guide to self-sustainability”. But, if you take a step back and look at the bigger picture of macroeconomics you will see that it’s an amazing time to be alive. Jason’s guest Jawad Mian says “the key is to watch the disruption”. Manufacturing may be at an all time low but the services provided by Silicon Valley and the tech industry will offset any economic loss with growth, just in different terms. The market always corrects itself just differently than people perceive it to. The future is brighter than you might think.

 

Direct download: CW_826_FBF.mp3
Category:general -- posted at: 1:00pm EDT

Jason welcomes Pat Donohoe back to the show. Pat is the President and CEO of Paradigm Life and host of the Wealth Standard podcast. Together, Jason and Pat analyze a Wall Street Journal article which addresses lower mortgage rates and how the lower rates may affect the already ‘hot’ real estate market, how autonomous cars will create a resurgence of the suburbs and how the upper middle-class is rethinking retirement based on the trend of extended life spans.

Key Takeaways:

[02:22] Wall Street Journal audio clip relating to the current housing market and interest rates.

[04:42] Zillow and isolated locations, like LA, with inflated housing values.

[11:35] Supply and demand in the rental property market.

[14:53] The Wealth Standard Radio and Paradigm Life contact information.

[15:36] The resurgence of suburbia will come with autonomous vehicles.

[19:28] A warning about spending money on high priced real estate.

[25:41] Reinventing retirement based on the cost of living longer.

[29:17] The 401k was never really meant as a retirement plan.

Mentioned in This Episode:

Jason Hartman

Longevity and Biohacking Show

Venture Alliance Mastermind

Zillow

Wealth Standard Radio

Paradigm Life

Unlimited Wealth: The Theory and Practice of Economic Alchemy by Paul Zane Pilzer

Direct download: CW_825.mp3
Category:general -- posted at: 3:42pm EDT

This episode demonstrates the versatility of the most historically proven asset class income property. Jason breaks down its multiple dimensions and the various factors which can be used to prove that income property is the best investment you can make. During the client case study segment, Ani Wee tells her story of monetary and portfolio growth from her income property investments. She uses the Hartman Network to find opportunities, to gather information and to engage with like-minded people.

Key Takeaways:

 

[03:30] Money matters!

[08:06] Why you should immerse yourself in the most historically proven asset class.

 

Client Case Study Ani Wee:

 

[21:29] During the market crash Ani was looking for options when she came upon the Creating Wealth Show.

[23:29] She started investing in real estate after reading Rich Dad Poor Dad but she didn't know what she was doing.

[25:36] Ani receives yellow postcards on the first property she bought from the Hartman network.

[30:41] Ani's duplex in Florida appreciated from $79K to over $150K and her RTV ratio increased.

[36:35] Comparison, income and replacement cost are the three basic approaches to appraisals.

[38:34] Don't be afraid to push back on property management issues.

[41:18] Ani will be doing a 1031 exchange on her properties in hybrid and cyclical markets.

[44:36] Don't wait to buy real estate and outsource your debt to your tenants.

 

Mentioned in This Episode:

Jason Hartman - Watch the Free Video on How to Understand a Pro Forma

Venture Alliance Mastermind

Direct download: CW2082420Client20Case20Study20Ani20Wee.mp3
Category:general -- posted at: 9:40pm EDT

Previously aired as CW 373

 

Rodney Johnson is President and Editor of Dent Research. He joins the show to explain why gold will fall below $800.

 

Johnson then discusses whether the US economy is slowing. He also shares how investors can build streams of income instead of relying on equity markets.

 

Visit Dent Research at www.dentresearch.com.

 

Rodney Johnson works closely with Harry Dent to study how people spend their money as they go through predictable stages of life, how that spending drives our economy and how you can use this information to invest successfully in any market.  

 

Rodney began his career in financial services on Wall Street in the 1980s with Thomson McKinnon and then Prudential Securities. He started working on projects with Harry in the mid-1990s. He’s a regular guest on several radio programs such as America’s Wealth Management, Savvy Investor Radio, and has been featured on CNBC, Fox News and Fox Business’s “America’s Nightly Scorecard, where he discusses economic trends ranging from the price of oil to the direction of the U.S. economy.  

 

He holds degrees from Georgetown University and Southern Methodist University.

Direct download: CW_823_FBF.mp3
Category:general -- posted at: 1:00pm EDT

The housing market is a seller’s market right now and Trump’s tax cuts may elongate the duration. Jason explains how a tax cut will boost the US economy and how investors can benefit from the multiplier effect. And later in the interview, Joe Fairless shares his rags to riches story. He explains how he got started investing, the necessary components of a master lease and how he scaled his portfolio so quickly.

Key Takeaways:

[01:28] Renter's Warehouse is the perfect sponsor for the Creating Wealth Show.

[04:27] The availability of properties in a linear market.

[07:50] CNBC clip about the demand for property in this seller's market.

[10:15] Trump wants to bring the tax rate from 35% to 15%.

[14:01] A Facebook memory reminds Jason of the big government disasters of the past.

[19:08] Income property investors can benefit from the multiplier effect of the proposed tax cuts.

 

Joe Fairless Guest Interview:

 

[24:23] Joe's startup story is one of delayed gratification and success.

[31:03] Joe reflects on the positives and the negatives of his investment experience.

[34:03] The master lease investment was 6.3 million on Joe's first property.

[37:32] The downsides of a master lease.

[42:14]  How Joe scaled the growth of his portfolio quickly.

[44:28] Free resources from Joe Fairless.

Mentioned in This Episode:

Jason Hartman

Renter’s Warehouse offers a special discount to Creating Wealth listeners

National Real Estate Investors Association

Joe Fairless

info@joefairless.com

Multifamily Syndication


Big data is here, it’s there, it’s everywhere. Real estate investors should use it to their advantage. Tenants credit scores are easy to access and just a click away. In this episode, Jason unpacks recent headlines which paint a picture of the state of the economic mindset in the U.S. Articles about the future of the insurance industry, your 401k account and the current value of the housing market are all scrutinized and analyzed. He also offers up some recommended reading to those worried about the state of the environment.

Key Takeaways:

[02:28] Newser article The Key to Easy Life Insurance, a Selfie? describes the future of the insurance industry.

[11:45] Jason's secret to aging well.

[14:19] Jason remarks on the Wall Street Journal article Grab Your Pitchforks America Your 401k May Need Defending From Congress.

[20:11] Recommended books on energy and environmentalism.

[20:56] RealtyTrac article Are We Headed Towards Another Bursting Housing Bubble in 2017?

[29:40] Headlines on the RealtyTrac site are telling about the state of the union.  

Mentioned in This Episode:

Jason Hartman

Creating Wealth Ep.#165 with Tony Alessandra

Longevity and Biohacking Show

RealtyTrac

Venture Alliance Mastermind

3 Dimensions of Real Estate  

 

Articles & Books

The Key to Easy Life Insurance, a Selfie?

Grab Your Pitchforks America Your 401K May Need Defending From Congress

Smaller, Faster, Lighter. Denser, Cheaper: How Innovation Keeps Proving Catastrophists Wrong by Robert Bryce

The Bet by Paul Sabin

Are We Headed for Another Bursting Housing Bubble in 2017?

Direct download: CW_821_Jason_Hartman.mp3
Category:general -- posted at: 10:30pm EDT

Originally aired as CW 165 

Jason talks with Dr. Tony Alessandra CSP, CPAE about The Platinum Rule. Listen at: http://www.jasonhartman.com/radioshows. Tony has a street-wise, college-smart perspective on business, having been raised in the housing projects of NYC to eventually realizing success as a graduate professor of marketing, entrepreneur, business author, and hall-of-fame keynote speaker. He earned a BBA from the

Direct download: CW_820_FBF.mp3
Category:general -- posted at: 6:56pm EDT

When 18 out of 20 valuation sources say the S&P is radically overvalued, it might be true. Most of you know never to invest in the stock market (unless you are an insider) but just in case, Jason shares a table with some astounding estimations of how overvalued the S&P is. And a local market specialist joins us from Oklahoma City to describe the benefits of investing in the primarily new construction market there. He says that a dollar stretches further, tornadoes have moved East and it’s a landlord friendly market.

Key Takeaways:

[02:07] The two ways to win on Wall Street.         

[04:05] Give value to the psychology of investing.

[07:13] An example of a crappy real estate deal in Santa Ana, California.

[11:02] The stock market is radically overvalued, 18 of 20 valuators concur.

[23:46] Yield/Dividend type investors always win.

 

Oklahoma City Metro Market Profile:

[26:03] New Construction keeps the economy rolling in Oklahoma City.

[31:05] The Oklahoma City area boasts a thriving economy and positive cash flow.  

[33:05] Are tornados and issue for investors needing to insure properties?

[38:09] Home value to income ratios in the Oklahoma City area.

[42:54] The local market specialist has an interest to satisfy investors.

[46:17] Property management services are available short and long term.

Mentioned in This Episode:

Jason Hartman

Hartman Education

Real Estate Tools

Direct download: CW_819.mp3
Category:general -- posted at: 1:00pm EDT