Thu, 13 June 2019
Jason Hartman talks with G Edward Griffin, author of The Creature from Jekyll Island, about corporate scams. Too many people hide behind the veil that corporations offer; ripping off consumers and shareholders and letting the company take the punishment. G Edward and Jason discuss this topic, as well as how we can actually change things to allow society to hold those responsible accountable.
[3:47] It can perfectly legal to extract millions of dollars from a company while the shareholders value drops to 0
[6:53] Trying to punish "the corporation" just means that shareholders get hurt
[9:23] How do we hold someone accountable when a corporation does something bad?
[11:09] How to actually make change happen to fix this problem
[14:16] Governments have a perpetual lien on your property. There's no such thing as owning something "free and clear"
[20:15] What is reasoning behind people like Soros when they pump money into politics?
[22:51] The Fabian Socialist Society believed you took over society gradually
[26:30] At what point is it proper for the state to intervene?
Wed, 12 June 2019
Jason Hartman talks with in-house economist Thomas about how interest rates in the past 10 years have compared to one another. The two explain why interest rates can be so difficult to predict and how these past 10 years are compared to the past.
[3:54] Interest rates aren't completely unpredictable, but they're driven by things where you can't know exactly what's going on
[7:11] Interest rates back in 2010
[16:49] #5 on Thomas' list is 2017, when interest rates dipped under 4%
[21:25] 2015 makes up the #3 spot on the list with interest rates averaging 3.85%
[25:19] The #1 year for interest rates in the past decade
[29:33] Remember that real estate deals can be renegotiated
Tue, 11 June 2019
Jason Hartman talks with Marc Faber, editor at Gloom, Boom & Doom Report, about what's going on in our economy with the massive asset inflation that's hit in the past few years. The two examine what central banks will have to do in order to deal with the looming shortages and what investments can buck that trend when it arises.
[5:03] Asset inflation is making the rich richer and leaving the poor and middle class behind
[11:10] Will millennials get bailed out by their inheritance from their Baby Boomer parents?
[14:25] The 2 investments that will appreciate in a global downturn
[16:17] 2 ways central banks can print money
[20:49] Inflationary actions can kick the can down the road a long way, but there is one thing that can ruin the party
[22:12] There's now a Saturday episode of Creating Wealth dedicated to Guided Visualization
Mon, 10 June 2019
1212: Stock Market & Economy Relationship CNBC, Empowered Self-Management, Commandment #21 Avoid Manias
Jason Hartman talks with client Drew Baker about one of his recent experiences in self-management that differed greatly from when he went through the same thing with a property manager.
They also discuss the new community Jason's trying to start up for self-managing investors, as well as why Commandment #21 is in play for a couple of different things right now.
[2:08] Drew's recent flooring story
[9:11] View your tenants as part of your team
[12:29] The new community that Jason's trying to build
[16:55] Reminder: Wall Street is not the real economy
[24:27] The market constantly prices things in, both on Wall Street and the housing market
[28:20] Some current manias that may violate Commandment 21
Sat, 8 June 2019
Fri, 7 June 2019
1211 FBF: Mortgage Sequencing, Rough Start But Great Results Client Case Study with Sue & Gary Pinkerton
Today's Flash Back Friday comes from Episode 937, originally published in January 2018.
Jason Hartman starts off today's episode discussing the amazing effect of inflation on assets in all markets. Then he turns his attention toward the upcoming Meet the Masters of Income Property event and gives a little taste of what he'll be discussing (hint: core beliefs investors need to have), as well as why there will be a whole host of Local Market Specialists at the event.
Then Jason goes into the first part of his client case study with Gary & Sue Pinkerton. The two give Jason a lot of background on why they're investing in real estate, why they continued investing even when their initial property went horribly awry, the way (and reason) they went about their mortgage sequencing, and how they picked the markets they're currently in. Part 2 will be aired tomorrow.
[3:26] Apple's new code release for their old Lisa computer technology, which would have been a $24,700 desktop today, which shows the power of inflation
[6:26] Jason will be discussing the core beliefs that we all need to have as investors at Meet the Masters
[8:26] What Gary fails to mention at the start of his client case study
Gary & Sue Pinkerton Client Case Study:
[17:15] Gary & Sue's first property did NOT start off well
[22:05] It's crucial to listen to your wife's intuition
[25:57] How Gary & Sue decided to split up their mortgages and why
[29:06] Why Gary & Sue picked the markets they're in today
Thu, 6 June 2019
In this 10th episode, off-topic show, Jason Hartman talks with Ocean Robbins, decendant of the Baskin-Robbins family and author of the new book 31-Day Food Revolution: Heal Your Body, Feel Great, and Transform Your World, about the state of American's eating today. The two break down how our diets have changed over the years, why some aspects of our diets are the way they are, how to make a more ethical, sustainable world, and more.
[6:59] Has anything changed since Diet for New America came out?
[9:03] There's a lot of money being made on the status quo
[12:15] What to do if you want a more ethical, sustainable world
[16:34] Jason's theory on meat through the ages
[19:23] We aren't getting nearly enough fiber in our diet now
[21:08] The key use of willpower is to establish healthy habits
Wed, 5 June 2019
Jason Hartman and Doug start today's show looking at how much money the average 20, 30, 40, 50 and 60 year olds have in their retirement savings. There's a discrepancy that can be frightening.
Then Jason finishes his conversation with Laurence Kotlikoff, William Fairfield Warren Professor and Professor of Economics at Boston University, about how his software, Maxifi, can help those people who are planning toward retirement. Laurence explains the intricacies, assumptions that many people don't make when factoring in their savings.
[4:29] You need to think about how much you're saving for retirement as well as how you're saving for retirement
[8:21] The current average savings for those in their 30s
[11:19] Amortization is beautiful because it just happens, there's nothing for you to do
[14:14] Your 40s presents both a danger and an opportunity for your retirement savings
Laurence Kotlikoff, Part 2
[18:31] Is the future inflationary?
[19:58] What do we need to do to plan for the future?
[26:16] How much time it takes to input your data into Maxifi
[29:52] Many people are saving too much for their later life because they're scared
Tue, 4 June 2019
1208: America's Retirement Savings Problem & USA's Unfunded Mandates with Laurence Kotlikoff, Part 1
Jason Hartman and Doug start off today's episode with a discussion on the issue of America's retirement savings. There's a looming problem with many people being unable to afford any form of an emergency expense, but also on the other end of the spectrum, as people are getting hit with taxes on their required minimum distributions.
Then Jason has the first part of his interview with Laurence Kotlikoff, William Fairfield Warren Professor and Professor of Economics at Boston University, about the massive amount of unfunded mandates that are awaiting the United States. Currently he has that number pegged around $239 trillion, and there are only a few ways that can be resolved.
[5:03] The Required Minimum Distribution problem
[8:14] Equity values going up 8% a year while the real economy is only going up 2-3%, eventually something has to give
Laurence Kotlikoff, Part 1
[17:57] The most recent number the unfunded mandates are going to cost
[24:52] Does Laurence believe in Supply-Side Economics?
[28:00] Consuming your way to prosperity has never worked before and won't now
[31:20] How Laurence would have dealt with the collapse of Lehman Brothers to calm the public's response to the start of the Great Recession
[35:03] Laurence's take on Jason's 6 ways the government can get out of its hole
Mon, 3 June 2019
Jason Hartman and in-house economist Thomas take today's episode to examine the 10 things that are happening in the US and abroad that are making the most impact in 2019. Among them are the US/China trade war, interest rates, the Mueller Report, millennial household formations, and more.
[2:13] The best thing that's happened so far in 2019 is lower interest rates
[4:54] Household formation for millennials is looking really good for investors
[7:36] The Fed being receptive of market conditions has been a good omen for 2019
[12:29] The 3% GDP growth they said we needed to "pay" for the Trump tax cuts happened
[15:28] Blogcast on Creative Destruction
[21:24] The Mueller Report's impact on the housing market
[24:06] The US needs to negotiate with China now before we operate out of a position of weakness
[26:19] When China sat out the bond auction recently it created a wild swing
Fri, 31 May 2019
1206 FBF: Client Case Study, Clay Slocum: Compounding Returns, Asset Protection, Appreciation Rates & Taxation
Today's Flash Back Friday comes from Episode 892, originally published in October 2017.
Jason welcomes client, Clay Slocum to the show. Clay is a millennial who currently has four properties in his real estate portfolio. Before buying his first property, Clay worked diligently with Oscar, his Investment Counselor, and a Local Market Specialist to play around with the numbers and he discovered his initial investment could grow exponentially. Clay shares his insights on the power of compounding interest, asset protection, and the Memphis market.
[01:10] Jason comments on the Las Vegas terrorist attack.
[09:30] Compound interest can be a powerful tool against inflation.
[15:12] Engineers take an analytical approach to investing.
[17:22] After 18 years, $100,000 grow to 14 million.
[24:43] Jason explains a Deferred Sales Trust.
[28:39] If you are on the fence about investing talk with an investment counselor.
[39:33] Asset Protection is a complicated subject you should speak with a lawyer about.
[48:58] Resources for tax help.
Mentioned in This Episode:
Thu, 30 May 2019
1205: CapEx Repairs, Home Inspections & Market, Screen, Lease, Collect, Maintain & Accounting Self-Management Tool UpTop by Frank Barletta
Jason Hartman and Adam kick off today's episode answering some listener questions from Brenda and Roger. They want to know about how Jason's family was able to make real estate investing work in California, as well as planning for CapEx repairs as a landlord.
Then Jason talks with Frank Barletta, Co-Founder and CEO of UpTop, about how his software can help self-managing property owners. Frank explains how UpTop helps landlords deal with leases and maintenance requests, as well as how to use the platform.
[3:26] Listen Question from Brenda: Jason doesn't like investing in California but his Aunt has successfully invested in Sacramento, CA. How did she succeed?
[5:58] Real estate as an asset is so powerful that it can turn decent investments into great investments over time
[8:12] How to account for large CapEx repairs
[11:46] It's crucial to look at your inspect report thoroughly and make sure the items that were supposed to be done were done properly so you don't get surprise expenses later
Frank Barletta Interview:
[18:56] What does a landlord do with UpTop?
[21:56] Where UpTop makes its money
[27:01] How UpTop handles leases
[27:48] Dealing with maintenance issues through UpTop
Wed, 29 May 2019
Jason Hartman talks with his Local Market Specialist from the Jacksonville/St Augustine markets about what led him start working in these markets, as well as what types of properties are available. The markets offer new construction single family, duplexes, and short-term rentals for purchase that all cash flow.
[4:35] When Bakersfield real estate stopped making sense, this LMS realized that Florida seemed like a good market
[7:20] The media's attempt at scare tactics for investing in real estate can tell you where we are in the cycle
[13:34] Jacksonville is still below peak pricing
[19:19] The 3 types of properties the Jacksonville/St Augustine markets provide
[24:02] Who are the short-term rental target tenants?
[27:32] You can cash flow expensive properties, but you have to do it in a different way
Tue, 28 May 2019
Jason Hartman and Adam examine the Investopedia article they referenced yesterday referring to the 9 common effects of inflation. The 2 types of inflation (cost-push and demand-pull) are also broken down in regards to how they impact your property value and rent.
Then the two examine what impact the Trade War with China could have on the markets properties are available in. If production from overseas come back to the United States, where are we likely to see the impact?
[4:18] The 9 common effects of inflation
[9:15] The land value is the one that's susceptible to big swings in value
[12:48] Cost-push versus demand-pull inflation
[15:57] How the Trade War could create cost-push inflation in the linear markets we're investing in
[19:12] If China ever manages to create a middle class they're going to have to deal with a new set of issues, which might make them an inopportune producer
[23:59] When labor shortages hit construction it can make it incredibly expensive to build a house and retain the workers needed
[28:39] Once the Trade War has ended, look at what job sectors are going to be impacted most and adjust your investing strategy accordingly
Mon, 27 May 2019
Jason Hartman and Adam take today's episode to discuss the growing trend toward a renter nation. But this trend isn't just for the young, it's for all age ranges. Renters in the 60+ demographic have seen an even bigger percentage increase than those in the 20-34 or 35-59. This is phenomenal news for landlords, as more people are competing to live in your properties.
They then look into the market for pre-fabricated homes, the impact of recent Airbnb decisions, and a brief glimpse at the 9 effects of inflation that will be discussed further in Tuesday's show.
[3:12] The over 60 demographic has seen a 43% increase in renters in the past decade
[6:52] A survey has found that few millennials are viewing home ownership as a necessity
[9:38] How the pre-fab home market is distorted to make it appear to be a cheap alternative
[16:18] A look into one of Jason's blogcasts on wealth creation
[20:34] Airbnb is giving up the addresses of 17,000 units to New York City.
[24:42] A brief look at the 9 effects of inflation
Fri, 24 May 2019
Today's Flash Back Friday comes from Episode 876, originally published in March 2017.
Jason and Investment Counselor Sara discuss the indirect impact of Hurricane Harvey in Houston. It may be one of the worst natural disasters in our nation’s history but an opportunity for rebuilding also exists. Prices will increase for commodities needed for rebuilding the area and labor will be needed in all sectors for those who were directly impacted by the storm.
[01:37] Disaster Capitalists make the most of the tragic flooding in Houston.
[05:25] A moratorium on mortgages benefits those with the most debt.
[11:09] Is it smart to buy properties on the cheap in Houston?
[12:32] How should investors handle damage to their existing properties?
[15:28] The cost of commodities always increase after a natural disaster.
[22:41] Laura wants to know how Jason's single-family portfolio homes performed during the 2008 recession.
Administrator@realestate.com - Free 1-hour onboarding session
Thu, 23 May 2019
Jason Hartman talks with Cynthia Kane, author of How to Communicate Like a Buddhist, as well as Talk To Yourself Like a Buddhist, about how we should be communicating with ourself and with others. Too often we say things hurtful to ourselves and our loved ones which we don't even realize until it's too late. Cynthia explains the elements of right speech that will point us in the right direction, as well as the importance of silence.
[3:23] The most important conversation you can have is with yourself
Cynthia Kane Interview:
[5:50] How does communicating like a Buddhist help you?
[9:39] The importance of "Mindful Listening"
[12:09] How we can use silence in a positive way
[19:43] How do you talk to YOURSELF as a Buddhist?
[23:47] You need to pump yourself up with self talk a little bit
[25:38] The importance of questioning
Wed, 22 May 2019
Jason Hartman and Adam take today's episode to discuss a new commandment Jason thought of while on the radio in Georgia after the recent Venture Alliance Mastermind event. They also discuss how Commandment #3 would protect investors from some of the exorbinant compensation packages that CEOs are taking that are harming stock holders.
Then Jason recaps the weekend and some of what he learned about tax liens and deeds and potential new markets that he visited while heading home from the event.
[3:04] The compensation of CEOs like Elon Musk shows why you should always maintain control (Commandment #3)
[8:16] Commandment #21 was created just this weekend
[15:02] Cuba doesn't have the port capacity to handle large cruise ships, so you have to take one of the smaller ones
[23:18] Early bird pricing ends June 4
[24:29] The Venture Alliance Mastermind weekend recap
[30:32] If you're going to invest in short-term rentals, make sure that the numbers work even if you have an increase in vacancy and a drop in prices during the next downturn
Tue, 21 May 2019
Jason Hartman and Adam start today's show answering a listener question about the value of local real estate investor associations. Jason has some dueling thoughts on the matter, and explains why you need to be wary when joining one.
Then Jason talks with Kelly Alexander, founder of Great American Tax Remedy, about how Kelly has been able to avoid paying Federal income tax since 2014. Kelly's method hasn't had to hold up against an IRS audit, but she's confident that what she's doing is completely legal and can help anyone out.
[4:47] Jason's thoughts on real estate investor organizations
[9:26] Do not fall for the "flavor of the month" or "get rich quick" schemes that you'll hear at some meetings
Kelly Alexander Interview:
[13:40] How Kelly's tax plan to avoid income taxes works
[17:17] Who else is using Kelly's technique?
[18:38] What Kelly does when she gets paid in order to avoid income tax
[28:36] How to report your income on your taxes under Kelly's format
[38:48] Why Kelly's strategy works for both state and federal taxes
Mon, 20 May 2019
Jason Hartman and Kerry take today to look at some of the signs in our economy today that don't point toward a rosy future. But don't take that to mean the sky's falling and we're headed for a doomsday scenario, we've still got some runway left.
The two also discuss how self-management can show you things that you wouldn't have known just sticking with a property manager. You don't HAVE to self-manage, but it's important to know how to self-manage so you don't get taken advantage of by your current manager.
[2:39] There are ominous signs out there for the economy, so we'll see how much longer it can hold them off
[5:47] For the first time in a long time, Kerry is bullish on the New York real estate
[13:13] Where will the next recession come from?
[17:05] There's an urgency that you need to do something now rather than waiting around
[21:04] Why Kerry thinks Indiana has been the longest running market for Jason's company
[25:19] Utilize your tenants as your assets
[30:51] If you choose to self-manage, remember to track ALL of your expenses
Fri, 17 May 2019
1196 FBF: Inflation: The Best Business Plan For Governments & Central Banks - Never Bet Against The Fed
Today's Flash Back Friday comes from Episode 887, originally published in September 2017.
The US is facing a looming financial crisis. In this episode, Jason outlines six business plans the government can use to ease its inflationary pressures. Four of the plans could result in negative outcomes, while the final two plans could achieve debt repayment by way of inflation. Understanding inflation and all of its aspects are not for the light-hearted. Jason explains inflation, how the government reports on inflation and offers up some educational resources for those who want to know more.
[04:35] Technology is changing the game in all aspects of life.
[11:15] Meet the Master's of Income Property Event is a 3-day event in January 2018.
[14:15] Jason identifies 6 ways to deal with inflationary pressures.
[21:17] Using inflation as a tool to avoid paying debts.
[27:39] Understanding the difference between real and nominal and price and value.
[33:49] Redistributing wealth through inflation.
[40:11] The three ways the government manipulates inflation statistics.
Mentioned in This Episode:
Thu, 16 May 2019
Jason Hartman talks with Josh and Mike from Elite Group Inspection Professionals about what to expect when getting a home inspection. A good home inspection can save you thousands, and a bad home inspection can cost you thousands. It can be tough to figure out who you can trust when you're getting one done, but Josh and Mike give you some resources to finding a competent inspector and what the major things you should be looking for on your inspection reports.
[6:49] Make sure you check your home inspector for licenses, certifications and insurance
[9:36] Some of the biggest concerns from buyers
[14:15] The pros and cons of various roof types
[19:09] Expect a lot detail about repairs needed in your inspection, but not about how much they will cost to fix
[22:43] What to look for on the interior of the house
[25:50] When you need to get a re-inspection done
[28:39] Some of the common plumbing problems
Wed, 15 May 2019
Jason Hartman and Drew do a small client case study about his journey of self-management, then move into the finale of Jason's examination of Kyle Bass' speech about China. Finally, Jason and Drew explain how Commandment #3 (Thou Shalt Maintain Control) and Tesla's current situation go together, as the company continues to make some poor business decisions and hemmorage money.
[2:50] Drew's new roof on his Indianapolis home
[9:54] When you self-manage, your tenant is part of your team
[13:59] Is self-managing really worth it to Drew or is he doing menial work that's not worth it?
[15:52] Revisiting Kyle Bass' speech
[23:06] How Commandment #3 and Tesla mix
[27:03] Tesla is getting dumb money and pillaging it
[30:29] In real estate you can fire someone and get another person to do the same job. With big companies like Tesla, you fire Elon Musk and the company's in trouble
Tue, 14 May 2019
1193: Client Case Study: David Nelson on Self-Management, Diversification & Listen Question on Loans After Fannie Mae & Freddie Mac
Jason Hartman and Adam start today's episode by answering a listener question from Amina, who wants to know what her options are after she maxes out her Fannie Mae and Freddie Mac loans. Surely there are options out there, but what are they?
Then Jason has a client case study with David Nelson, who, along with his wife, has amassed a real estate portfolio that has allowed her to retire early to focus on their holdings. David discusses how his cockiness led him into a bad deal, why continual education is important and where his journey is heading.
[5:15] Listener Question from Amina: what do you do after you max out your Fannie Mae/Freddie Mac loans?
[10:34] If you're wanting to cruise to Grand Cayman, Jamaica and Cuba you need to sign up soon!
David Nelson Client Case Study:
[17:19] David started getting cocky investing in 2016 and didn't pay enough attention to his inspection
[20:24] Jason's group doesn't do any one off deals
[24:28] How self-management has gone for David so far
[29:18] When you combine education with action you can accomplish nearly anything
[33:01] Why being 80% in on one asset class isn't necessarily a mistake
Mon, 13 May 2019
Jason Hartman and Adam use today's episode to discuss some important information about rental rates vs income growth, answer listener questions and what Mark Zuckerberg's college roommate thinks about him.
[3:29] Rents have been rising faster than incomes in most of the United States
[7:56] Investing in a prudent market with lots of government jobs could be helpful for rents not decreasing
[13:31] Would real estate investing make sense if another Depression hit the US?
[23:36] Population decline can be devastating for real estate investors
[29:06] Once big tech companies get their funding they start to lose their touch with the people
Fri, 10 May 2019
1191: Pension Ponzi Schemes, Asset Inflation, War On The Middle Class, Bernie Madoff, Market Cycles, American Greed with Pat Donohoe
Today's Flash Back Friday comes from Episode 872, originally published in August 2017.
Jason welcomes Patrick Donohoe of The Wealth Standard Podcast to discuss the dirty details of pensions, insurance policies and Ponzi schemes. Jason describes the difficulties and common mistakes average retail investors make when investing in financial services. And, Pat gives a comprehensive overview of how to make the most of your existing policies in order to invest your money in the most historically-proven asset class, income property.
[02:25] Is the US a giant Ponzi scheme?
[05:31] Understanding the difference between pension benefit plans and contribution plans is essential.
[15:15] The financial service industry preys on retail investors.
[20:49] Harry Markopolos is waiting to capitalize on a market correction.
[27:09] Analyzing the patterns and mistakes of the middle-class investor.
[35:27] The Wealth Standard Podcast focuses on helping individuals understand the comprehensive nature of the economy.
[37:49] Pat explains how policyholders can reduce their risk and get investment money for cash-flow properties.
Mentioned in This Episode:
Thu, 9 May 2019
Jason Hartman and Adam start off today's show talking about the topic of the news today: Trump's billion dollar "loss" over a 10 year period. What the media fails to mention throughout the whole thing is that he didn't actually LOSE any of that money, he simply had massive deductions thanks to the beauty of real estate phantom deductions.
Then Jason talks with Steve Jones, CEO of Allied Universal and author of the book No Off Season: The Constant Pursuit of More, about how his career in sports translated into business success. Steve and Jason look at the various skills learned in sports and how can each be applied to the business world, whether you're an employee or employer.
[2:55] People are horribly off target thinking Trump is a "Billion Dollar Loser"
[5:21] Real estate deductions run on a depreciation schedule
[9:37] Real estate offers you a tax deduction you can't get any other way
[11:44] How property tax states are able to increase their revenue through land value
Steve Jones Interview:
[18:16] Your ability to overcome obstacles is going to make or break your success
[21:05] Sports teaches you how to work as a team
[24:10] Some techniques on how to keep the team cohesive when dealing with adversity
[27:49] With no action steps in place you only have a dream, not a plan
Wed, 8 May 2019
1189: Artificially Low Interest Rates, the Next Recession & Investment Income From Tenants with Drew, Part 2
Jason Hartman wraps up his talk with Drew from yesterday, as the two leave the topic of self-management and delve into more economic lines of conversation. Jason brings up a recent Peter Schiff tweet and the two dissect whether it holds water in today's environment, as well as discussing how articially low interest rates are impacting the investing landscape we see today. They also discuss a different way to look at the rents you're collecting from your tenants in a way that makes it even more powerful than it looks at first glance.
[3:01] If falling consumer prices have been good for the last 100 years, why does the Fed think they're bad now?
[6:25] The artificially low interest rates are encouraging bad investments
[10:24] Who's going to get hit hardest in the next recession?
[14:10] Targeted advertising is keeping us from seeing a large chunk of the world today
[19:54] It's important to hold yourself accountable the same way you hold your tenants accountable when dealing with your investment properties
[23:57] Your tenants are working 33-40% of their work life just to pay you
Tue, 7 May 2019
1188: Client Case Study: Tenant Retention, Lease Renewals, Single Family Cost Segregations & Noise Pollution with Drew Baker, Part 1
Jason Hartman talks with client Drew Baker in part 1 of their interview about the new developments in Drew's journey in self-management. Drew gives Jason a rundown on how he deals with lease renewals, some of the repairs he's doing to his properties in order to retain his tenants, and what software he's using to keep track of it all. Jason also gives Drew a little bit of advice on how he may be able to accelerate his depreciation in a cost effective manner.
[5:15] The one type of pollution that China doesn't have, that America has PLENTY of, is noise pollution
[10:35] An update on Drew's self-management process
[13:38] Cost segregation studies have become reasonably priced for single-family homes and could well be worth the cost
[18:29] Drew tries to get his leases to come up for renewal in the warmer months, as well as signing a 2 year lease
[22:00] Drew's approach to lease renewals
Mon, 6 May 2019
Jason Hartman takes today's show to go over his thoughts on J. Kyle Bass's speech from the recent CPDC Conference about China. As the second largest economy in the world, China carries a lot of weight, claiming to have around 15% of the world's GDP. But a closer look at the numbers gives us a sense that it might not actually be true. There are dangers lurking in the China economy that could lead to some bad events.
Then Adam talks with Graham, one of the mortgage lenders with the network, about what interest rates investors can be expecting this month.
[3:13] China claims to have 15% of the world's GDP, but there's little to prove that's true
[5:49] Jason used to listen to the doomsayers, but it's not going to happen with such a demand for dollars
[9:47] Endowments don't invest in the greatest things, but it's not a problem that should be that difficult to solve
[16:12] The dangers present in China in their banking sector
[19:16] Hong Kong is the most expensive real estate in the world, at $10,000 per square foot
Adam's Mortgage Update:
[23:43] We're seeing investment mortgage rates in the low-mid 5s
[27:05] What will happen if the Fed decides to cut rates this year?
Fri, 3 May 2019
1186 FBF: Income Property Management, Tenant Self-Sufficiency & Tangible Assets with Scott Shellady, SVP of Derivatives for Trean Group
Today's Flash Back Friday comes from Episode 363, originally published in February 2014.
"The Cow Guy" Scott Shellady is the Senior Vice President of Derivatives at the Trean Group. He joins the show to discuss where people should start when investing in tangible assets.
Shellady believes in SWAGER for investing, standing for Silver, Wine, Art, Gold, Energy and Real Estate. He thinks SWAGER investments are a good choice for current investors.
The topic then shifts to how boomers can prepare for retirement. Shellady explains the most common mistakes baby boomers make with their finances and what they do if they were laid off or fired during the recession to protect their retirement.
Thu, 2 May 2019
Jason Hartman brings this episode to you from China, where he has seen the impact of the rising middle class. While it may seem to be a world away, the growth in construction in China is impacting the cost of construction here in the United States as well.
Then Jason talks with Anna Myers, Vice President of Grocapitus, about how to analyze deals, specifically for multifamily. Anna's group is all about finding the right deals in the right market, and she talks with Jason about which markets are looking good and which are past their peak, along with why the demographics for real estate investors is still incredibly bullish.
[3:28] The Chinese surveillance state is rampant and the country seems very wary of terrorism
[7:04] The rising middle class in China has led to a large amount of higher end stores
[10:31] All buildings are made from the same materials, so when there's a building boom in China it impacts builders everywhere
Anna Myers Interview:
[13:08] What is Anna's definition of "data driven real estate investing"?
[18:23] How can you know when the supply of starts is going to meet the demand for jobs?
[21:51] Things you need to be looking for at the neighborhood level of your market
[27:36] Anna's team is looking at approximately 80 markets a quarter
[31:28] What kind of properties does Anna have in her portfolio?
[33:47] The stigma of renting is gone as Millennials and Baby Boomers are now renting
Wed, 1 May 2019
1184: Client Case Study: SFRs to Apartments with Greg Scott & Population Density's Impact on Real Estate Prices
Jason Hartman begins today's episode from the city of Shanghai, one of the largest (and densest) cities in the world. Since he's been in town he's started thinking about the importance of population density on real estate. It impacts everything from quality of life to desirability of businesses to the pricing of every unit.
Then Jason talks with client Greg Scott about his journey from accidental landlord to an owner of multifamily properties. Greg and Jason examine why people don't know whether they're winning or losing, how Greg was able to continue investing through the Great Recession, and what sort of demographics are making being a landlord look better and better.
[3:46] It's important not to overlook the importance of population density
[6:27] One of the huge drivers of real estate prices is population density
[11:10] Even after "graduating" to bigger deals, Jason believes the single family home is the best deal out there
Greg Scott Interview:
[14:46] Greg's journey to becoming an accidental landlord
[18:23] People often don't know whether they're winning or losing
[23:29] When you hear about the returns people get from real estate and want to do the same, you have to actually act on it
[25:03] Greg's plan for his new multifamily facility
[27:49] How worried was Greg when he was investing in property during the Great Recession?
[31:555] Does Greg see the same thing about high rental demand as Jason does?
Tue, 30 April 2019
From Hong Kong, China, which Jason calls the "Jewel of Capitalism", Jason Hartman delves into what he's seen about real estate and economics from his trip. If you think real estate in the US is expensive, you ain't seen nothin' yet.
Then Jason talks with Chris Martenson, co-founder of PeakProsperity.com and co-author of Prosper: How to Prepare for the Future and Create a World Worth Inheriting, about how the era of abundant, cheap energy is gone and our world needs to change with it. That doesn't mean abandoning everything we have now, but just recognizing the actual situation and adjusting our investments/behavior accordingly. Chris and Jason also discuss the future, and whether we're going to see inflation, deflation, or a little bit of both.
[3:06] Hong Kong real estate has prices per square foot that are unfathomable
[7:35] There's always the real economy and the symbolic economy, and they're vastly different
Chris Martenson Interview:
[11:39] We're coming up to a time when humans are going to have to organize ourselves in very different ways
[14:20] There are 2 ways humans change
[19:32] It's getting costlier and costlier to get less and less oil out of the ground
[22:08] The easy, cheap energy from the past is gone, which explains why the global growth rate for the last 15 years has been subpar
[28:09] We're beginning to see that raising children in a dopamine heavy technological world is creating issues we hadn't expected when it began
[33:02] We have a lot of debt in our society, so deflation is ready to take over
Mon, 29 April 2019
1182: China, Looming Asset Shortage & Debt Cleanse: How to Settle Your Unaffordable Debts for Pennies on the Dollar by Jorge Newbery
Jason Hartman brings you this episode from China with Venture Alliance Member Carmen. Jason describes how his visit to China is influencing his previously held thoughts about the country and how the looming asset shortage is a beautiful things for real estate investors.
Then Jason talks with Jorge Newbery, founder and CEO of Debt Cleanse, founder of American Homeowner Preservation and author of Debt Cleanse: How to Settle Your Unaffordable Debts for Pennies on the Dollar, about how he was able to climb out of a $26 million hole and how others can follow in his footsteps. This isn't about cheating your way out of debt, it's about using the same rights that creditors have because you need to protect yourself from predatory lending practices.
[4:23] Jason got to visit the railroad station that was built to link North and South Korea in the future
[7:54] 5 star in the US has nothing on 5 star in Asia
[11:26] How Jason's visit to China has changed his views on the China economy
[13:39] The looming asset shortage, and why it's good for real estate investors
Jorge Newbery Interview:
[18:57] Debt may seem simple, but it's a lot more nuanced that you'd first believe
[20:42] If you can't afford your debts, the best thing you can do is to stop paying them
[23:54] How Jorge got started paying off his $26 million debt
[26:31] What kind of errors you should be looking for from your lendors
[32:21] The elite have often used debt as a way to enslave the lower classes
Fri, 26 April 2019
Today's Flash Back Friday comes from Episode 662, originally published in April 2016.
Jason takes a break from a Social Media conference to analyze stories from the USA Today’s Money section. He shares the new tech items which will affect real estate pricing in the future, the underemployment issue in the US and the median wage of CEO’s of major corporations.
[4:24] Live video and Virtual Reality (VR) will impact real estate pricing by changing the value of the three cardinal rules of location, location, location.
[9:26] A 5% unemployment rate in the US means everyone who wants a job has a job. The real problem is underemployment.
[15:10] Some CEO’s make $9000.00 an hour while minimum wage workers are looking for $15 an hour.
[22:09] Does an early retirement equate to an early death sentence?
Mentioned in This Episode:
Thu, 25 April 2019
Jason Hartman and Adam start off today's show talking about one of Jason's favorite things when it comes to real estate investing: the Housing Affordability Index. The two really look into how the index is created, what elements go into it, and look at how affordable some of the markets they're investing in are.
Then Jason talks with James Whittaker, author of Think and Grow Rich: The Legacy and host of Win the Day with James Whittaker, about how Napoleon Hill's original Think and Grow Rich still applies in today's world. James and Jason look at how you can reprogram your brain and why his book still matters all these years later.
[4:09] The formula for the Housing Affordability Index
[8:43] Looking year over year you can see which direction a market's affordability is heading
[11:18] How Financial Immaturity is helping investors
[14:20] Housing affordability doesn't factor in a critical element
James Whittaker Interview:
[19:36] What's the big deal about Napoleon Hill's Think and Grow Rich?
[22:55] The mastermind principle
[28:33] Is everything from the original Think and Grow Rich still valid or do we have to modify it for today's world?
[31:19] Opportunities will come, so you have to constantly be ready
[35:06] Reprogramming your mind to conquer limiting beliefs and start living with intent
Wed, 24 April 2019
Jason Hartman starts today's show with his in-house economist Thomas to discuss the new tax law and the impact it can have on people's tax brackets. They also dive in to why the government is interested in keeping the official inflation rate lower than actual inflation rates, as well as when it can really hurt the average citizen.
Then we have a clip from the 2019 Meet the Masters of Income Property event where he discussed the good, the bad, and the ugly of self-management. Drew provides some insight into what's happened with the 8 properties he's self-managing right now, how he deals with issues that spring up (Amazon has been a life saver) and lessons learned about relationships with tenants.
Tue, 23 April 2019
Jason Hartman and Adam start the episode today discussing landlord friendly markets. Specifically, how you can determine whether you're investing in markets that are. Jason explains an easy (but not foolproof) way to figure out if a market is friendly to investors, as well as another way to find out the difficulties of evicting tenants in your potential market.
Then Jason talks with Mark Smukler, co-founder and CEO at Bixby, about self-management. Mark explains how Bixby is designed to help self-managers and some of the best practices those who decide to self-manage can utilize. This includes how to handle maintenance requests, rent collections and keeping a healthy distance between yourself and your tenants.
[3:49] How to find landlord friendly states
[8:03] The most landlord friendly state in the country is Arkansas
[10:47] Ask a few property managers to find out how eviction laws in the state/city work
Mark Smukler Interview:
[14:44] The two ways Mark sees Bixby working
[18:15] How maintenance requests and rent collections work in Bixby
[22:09] Bixby allows credit cards to pay rents, and credit card fees can be disputed. How does Bixby deal with that?
[23:44] Some property management best practices
Mon, 22 April 2019
Jason Hartman and Adam start today's episode answering a listener's question about whether it's better to invest in a single-family home or to look at larger, pooled assets like a 16+ door multifamily. Jason reminds everyone about Commandment #3, which is especially critical in decisions like these.
Then Jason talks with Mark Dolfini, Landlord Coach and author of The Time Wealthy-Investor, about best practices for self-managing your properties. Mark discusses the importance of treating your investments as a business and how to create a healthy distance between yourself and your tenants.
[7:05] Single family homes tend to get better tenants, appreciate better, get better financing options and several other perks over multifamily
[10:14] The risks of investing in pooled assets. Don't violate Commandment #3!
[12:20] RV ratios for apartments will be higher because of shared walls, but don't let that be your determining factors between the 2.
Mark Dolfini Interview:
[14:53] You have to think of your real estate investments as a business
[17:34] A simple tweak to keep from giving your cell phone number to your tenants
[22:33] Whatever you're doing, it has to be scaleable
[28:07] The software Mark likes to use
Fri, 19 April 2019
1176 FBF: Wealth Creation & Asset Protection with Garrett Sutton, Attorney & Rich Dad Advisor to Robert Kiyosaki
Today's Flash Back Friday comes from Episode 371, originally published in April 2014.
A best-selling author, speaker and a member of an elite group of "Rich Dad's" advisors, hand selected by author Robert Kiyosaki, Garrett speaks to investors and entrepreneurs on a variety of topics including asset protection, liability limitation, wealth creation, as well as various business and real estate issues. As an advisor for Robert Kiyosaki, Garrett has authored Own Your Own Corporation.
Garrett's books provide an accessible source of information for building your own success. A member of the State Bars of Nevada and California, as well as the American Bar Association, Garrett attended Colorado College and the University of California at Berkeley where he received a B.S. in Business Administration in 1975. In 1978, he graduated with a J.D. from University of California's Hastings College of Law in San Francisco.
Beyond his desire to educate people and business in wealth protection and growth, Garrett serves on the boards of the American Baseball Foundation, located in Birmingham, Alabama and the Nevada-based Sierra Kids Foundation.
Thu, 18 April 2019
Jason Hartman and in-house economist Thomas start off today's show discussing what inflation really is, and how it's measured. There are different ways inflation can be manipulated, whether it's for political gain or belief system.
Then, Jason talks with Mark Ferguson, founder of InvestFourMore, about the state of the housing market in Mark's area of northern Colorado. The two examine the lack of inventory, best rehab practices, what (and when) to rehab, and keeping contractors in line.
[2:38] How inflation really works and what "core inflation" is
[6:27] The 3 major ways we're convinced inflation is lower than it really is
[9:39] The importance of hedonics and what Jason hates about it
Mark Ferguson Interview:
[15:13] Mark is seeing a slowdown in his area
[18:57] Things are slowing down, so why isn't there inventory available?
[22:52] When the market slows down, rents tend to get strengthened
[24:57] Best practices for rehabbing properties and keeping contractors honest and accountable
[28:05] How do you decide what to rehab?
[30:42] Mark's experience buying a strip center
Wed, 17 April 2019
Jason Hartman is joined today by Kerry and Carmen as he does one of his last shows from the United States for a little while. Jason and Carmen are off to mainland China and South Korea for a few weeks and they discuss what changes Carmen has seen among all her trips.
The trio also look at what the Fed rate hikes and cuts have done to the investment real estate market, as it has created an interesting scenarios for buyers that could be very helpful. Finally, Jason has an "investigative report" from the inside of a ride-sharing trip talking with a former employee of Amazon on how we have been misled a little by the company.
[2:57] How much of the Fed's rate hikes have been in an attempt to "reload the gun" for the future?
[6:11] What the apreciating US dollar is doing to investors around the globe
[9:16] Rates are coming down currently but prices aren't rising, which means it's a good time to be buying real estate
[12:28] Carmen's previous experiences in mainland China
[18:03] Jason and Carmen's visit to the Amazon Fulfillment Center and an interview with a former employee
[21:37] Amazon pickers are walking at least 10 miles a day to get orders together
[23:22] The pay raise that Amazon gave their warehouse employees was offset by a slash in benefits
[28:59] Jeremy Siegel's "Looming Asset Shortage" article
Tue, 16 April 2019
Jason Hartman and Adam take today's show to look at several articles about today's economy and housing market. The first one is about former Fed Chairman Alan Greenspan's thoughts on the economic state of our country in regards to the growing entitlement culture in America. The other article is about Zillow's foray into the home buying/selling world. Adam and Jason break down how each of these things will impact the average real estate investor.
[3:34] The 10/1 ratio for the S&P and mortgage rates
[10:13] The possibility of investing in assisted living centers isn't as appealing as some make it out to be
[15:29] Money goes where it's treated best
[16:32] How Greenspan's comments correlate with what the current Fed has said about interest rate hikes this year
[19:12] Zillow's venture into the home buying/selling marketplace
[22:41] Institutional investors will take a lower return than a single individual
[25:31] Warren Buffett's giant problem
Mon, 15 April 2019
Jason Hartman and Investment Counselor Sara are on today's show discussing what makes for the "best" market for real estate investing, as well as branching out into new markets and whether you should buy new construction or rehabbed properties.
After Jason finishes his talk with Sara, he talks with Julia, who will be speaking at the event in Savannah, GA about tax liens and deeds. She gives a brief intro to what they are and what she'll be discussing at the event.
[4:05] What makes a top market?
[6:50] Starting to branch out into Pennsylvania
[12:36] What some clients across the globe have been up to recently
[17:30] New construction versus rehab
Tax Liens and Deed Interview:
[23:59] An intro to tax liens and tax deeds
[24:57] How Julia was able to buy a house in Savannah for simply paying back taxes
[27:26] Julia will be teaching how to avoid problem properties and how she evaluates deals
Fri, 12 April 2019
Today’s Creating Wealth Show is all about the ins and outs of real estate investing. Jason Hartman discusses what you can do to find your way on the path to wealth and how you can make the most of taxation (really!).
1.45 – The path to wealth lies in diminishing our wants as we simultaneously increase our incomes.
07.05 – With taxation being everyone’s single largest expense, we need to find a way of working that in our favor.
10.05 – Depreciation tax deduction is, without a doubt, great for real estate investors.
14.04 – Income property gives you the benefit of trading assets through your life without paying taxes – legally.
19.43 – Yet another benefit is that travel expenses such as gourmet restaurant dinners and luxury hotel stays can sometimes be tax deductible. Even trips to the Creating Wealth Seminars and Property Tours could be deductible!
Thu, 11 April 2019
There's a lot of money going into tech stocks in today's world, which was the case back in the late 90s. There are some other signs that we may be entering that territory again. Jason Hartman and Adam break down an article that gives 7 signs that we may be headed for round 2 of the dot com burst and see if they agree with the points.
Then Jason talks with Tal Tsfany, President & CEO of the Ayn Rand Institute, about free speech on college campuses, how we should be defining things like happiness and selfishness, and why we should be focusing on the self. They also examine the philosophies of those who want to tax the rich in order to redistribute wealth.
[2:18] Venture Capital investment in tech is around 1999 levels
[6:41] The trait behind the boom and bust of the 90s
[12:09] How growth stocks vs value stocks relates to the housing market
Tal Tsfany Interview:
[16:28] What's happening with speech on college campuses is a result of progressive philosophies
[18:16] What would Ayn Rand's political views be in today's world?
[21:56] Ayn Rand's definition of happiness
[25:23] Love is a goal or value that you pursue. It's a spiritual trade
[29:20] Ayn's definition of selfishness
[33:18] Berkley students in the 60s were reading Ayn Rand to be cool, but not following through on the axioms
Wed, 10 April 2019
Have you started teaching your kids how to invest? That's the question that Jason Hartman and Adam tackle in the opening part of today's show. The two discuss some of the more important things you can talk to your kids about in order to set them up for a lifetime of successful investing.
Then Jason talks with Anton Ivanov, founder of DealCheck.io, about his real estate journey and what made him create his deal evaluating software. The two also explore what metrics real estate investors can use to best evaluate deals and where to get numbers that will actually give you accurate results.
[2:55] The first thing you might want to do to teach your kids about investing and how Adam is approaching it with his kids
[7:00] Jason's first savings account
Anton Ivanov Interview:
[14:57] How Anton became an accidental landlord and started his real estate journey
[18:07] How the need to evaluate deals led to Anton's technology, and how to evaluate deals in general
[21:26] The only sure way to get accurate numbers in cash flow or profit equations
[24:13] Some of the metrics Anton loves to use
[28:35] Is the future for landlords as good as Jason believes?
[35:12] You can buy in blighted areas if you want, but know that they can take a REALLY long time to turn, if ever.
www.DealCheck.io - Promo Code CW25OFF
Tue, 9 April 2019
Jason Hartman and Investment Counselor Doug take a look today at how to protect yourself from identity theft. 11 major companies had breaches in the past year, nearly guaranteeing that your information was among them. Hear from these two about steps you can take to protect yourself as best you can. They also look into how the McMansion market is tanking, the need for financial literacy in today's school system and household debt across the United States.
[6:18] The McMansion glut is here, and the sales prices aren't pretty
[9:38] The median retirement savings for Americans aged 55-64 does not show good things
[13:35] School systems need to teach financial literacy
[17:11] Protecting yourself from the crime of our time: Identity theft
[20:20] What locations have had data breaches recently
[25:09] You can subscribe to identity monitoring services, but the best thing you can do is educate yourself
Mon, 8 April 2019
1167: 1031 Exchanges, Interest Rates, Cap Rates & Self-Driving Cars vs REI with Rich Dad Advisor Ken McElroy
Jason Hartman and economist Thomas open today's show discussing some less talked about aspects of the 1031 exchange. This conversation focuses on how you can incorporate personal property in your exchange and the deadlines the IRS imposes when you're doing your exchange.
Then Jason talks with Rich Dad Advisor and multifamily property investor Ken McElroy about his recent sale of $300 million worth of property, as well as supply levels of multifamily properties, why Ken is still bullish on real estate and the future of interest rates.
[6:25] How to lump personal property into your 1031 exchange
[8:04] IRS time deadlines for 1031 exchanges
Ken McElroy Interview:
[12:45] Why did Ken choose this time to sell his properties and how did he do it?
[17:05] Cap Rate fails to take appreciation into account
[19:01] Is there an oversupply of multifamily that's causing rents to not grow as quickly?
[23:06] What Ken has learned about his facilities for the 55+ community
[24:54] Why Ken is still bullish on real estate
[28:38] Capital always looks for safety in the US
[32:21] The impact things like ride sharing and autonomous cars are having (and will have) on real estate
[35:04] Ken's take on the future of interest rates
Fri, 5 April 2019
Today's Flash Back Friday comes from Episode 407, originally published in September 2014.
Matt Theriault is is an entrepreneur, author and success coach who shows people how to start over and begin a new life setting goals and objectives so they can create wealth and live life to the fullest. Matt is the founder and host of the Do Over podcasts.
Thu, 4 April 2019
1165: Wage Growth, Economic Data & Earning & Investing in a Trade War w/BBC, Forbes & Bloomberg's Jeff Ferry
Jason Hartman begins today's show discussing where the real growth in wages is happening. Fortunately it's happening in the "real" economy, meaning those jobs that are involved in creating the widgets that we use. That sort of data really helps the linear rental markets that we're investing in. He also provides some economic data that's been released recently.
Then Jason talks with Jeff Ferry, Chief Economist at the Coalition for a Prosperous America, about what's going on with the US trade war. Jeff has some ideas on how to close the gap between the US and the rest of the world, but Jason has some questions about whether they would cause inflation. They also look into America's manufacturing sector and why we need to ramp it back up.
[2:52] People with no college degree are seeing their wages climb faster than people with college degrees
[6:21] When you have a strong manufacturing base in a real estate market, you have stability
[11:33] The economy has to be made up of many different players, and none of them are unimportant
[15:45] Consumer confidence slipped for the 4th time in 5 months and housing starts fell 8%
Jeff Ferry Interview:
[19:35] Jeff's thoughts on the current trade situation
[23:51] One of Jeff's solutions for helping cure the trade imbalance is to reduce the value of the dollar
[27:45] How would devaluing the US economy impact our purchasing goods from other countries and how would it impact the economy at home?
[30:57] You have to have capital formation for a society to create wealth
Wed, 3 April 2019
1164: Disincentivizing Home Ownership & History of the Future, Oculus, Facebook & the Revolution That Swept Virtual Reality by Blake Harris
Jason Hartman and his in-house economist Thomas begin today's show by looking at how the tax reform is impacting home ownership across the country. Deductions that use to be highly favorable to many families have now become not as useful as the standard deduction was nearly doubled under the new law. This could cause some people to view purchasing a primary residence a bit differently.
Then Jason talks with Blake Harris, NY Times best selling author of the new book The History of the Future: Oculus, Facebook & the Revolution That Swept Virtual Reality, about the impact technology is having on our lives and how virtual reality can (and currently can't) fit into them as well. The two examine who the leaders are on the VR front, what price point you're currently looking at versus how much it may cost in the future and more.
[6:12] When the government disincentivizes home ownership, investors win
[10:38] Some quick and simple math about how changes in the tax law is making some families lose deductions
Blake Harris Interview:
[14:29] Is the Virtual Reality revolution over before it's even really begun?
[17:25] How technology could change the way we look at properties
[20:56] What is "affordable" for virtual reality equipment?
[22:38] Oculus is the clear leader for now, but who's coming behind them?
[26:55] How virtual reality can be used in a social context
[30:52] How much farther can virtual reality drive the retail apocalypse?
Tue, 2 April 2019
Jason Hartman and Adam tackle several issues in today's episode, including the potential of Fannie Mae and Freddie Mac returning to a private company, why it can be dangerous to invest in condos and why Jason would allow a lender from Wells Fargo to come to his events. Hear about this and several other current events of the day, as well as the April edition of the mortgage update. Adam interviews Joe the Lender and found out what investors can expect for their loans, the reserves you need to buy homes and more.
[3:06] Trump has signed a memo to consider ending the government conservatorship of Fannie and Freddie and allow them to return to private companies
[7:59] You can be self-reliant and not like government handouts, and think philosophically that things are wrong, but in practice sometimes you should take advantage of the situation
[11:19] Why Jason doesn't like investing in condos
[15:40] Jason's journey on The Goodyear Blimp
[19:06] Why Jason allowed a Wells Fargo lender to come to his events recently
[21:38] "Kneejerk Capitalism"
Adam's April Mortgage Update:
[23:59] What rate can investors be expecting in today's market?
[29:13] Reserves needed when seeking a Fannie or Freddie backed mortgage
Mon, 1 April 2019
1162: What Every Real Estate Investor Needs to Know About Cash Flow & 36 Other Key Financial Measures by Frank Gallinelli, Real Data
Jason Hartman talks today with Frank Gallinelli, founder and President of Real Data and author of the book What Every Real Estate Investor Needs to Know About Cash Flow & 36 Other Key Financial Measures, about what metrics Frank finds the most important for single family home investors to pay attention to. They also discuss the "holy grail" metric that investors should be using and when you actually SHOULDN'T invest in real estate.
[4:30] One of the costliest mistakes Jason has made in his life
Frank Gallinelli Interview:
[6:23] What are the core metrics that real estate investors should be looking at?
[11:09] You should try and forecast best case, worst case, and in-between case for your properties
[12:32] What is discounted cash flow?
[15:07] The holy grail metric is still IRR (Internal Rate of Return)
[16:56] A different way to view Return on Equity
[20:29] Is there a time where it doesn't make sense to acquire properties?
[26:14] Education is absolutely vital to being a good investor
Fri, 29 March 2019
1161 FBF: Robert Kiyosaki, author of Rich Dad, Poor Dad: Financial Education & Cultivating Entrepreneurial Genius
Today's Flash Back Friday comes from Episode 387, originally published in July 2014.
Robert Kiyosaki is the acclaimed author of Rich Dad Poor Dad. The Rich Dad Company has made Rich Dad Scams: 8 Financial Scams Disguised as Wisdom available for free eBook download, so Kiyosaki talks in detail about scams everyone needs to understand.
Kiyosaki discusses the fundamental challenges with the traditional school system and how corporate America kills the entrepreneurial genius of many bright workers.
He also explains how much money one should have in their bank account.
Thu, 28 March 2019
Jason Hartman starts today's show with a bit of a rant. We're in a world where many "gurus" are just sales people who bring you in, promise you the world, then hand you off to low paid people who simply read a script to you. We have to demand better than that.
Then Jason talks with Jeremy Heimans, co-founder and CEO of Purpose and author of New Power: How Power Works in Our Hyperconnected World - and How to Make It Work for You, about how movements are started in today's world, why you're seeing power concentrated more and more, and getting more buy in from your audience.
[3:20] People don't want to be processed
[6:40] One of the best, weird compliments Jason's ever received from one of his clients
[8:28] Plan your vacations with Jason, next event is coming up in May
Jeremy Heimans Interview:
[12:46] Old power vs new power
[17:34] How do you start a movement?
[24:44] We're seeing more and more concentrations of power even when we thought it was decentralized
[29:04] How much equity are companies giving to their supporters?
Wed, 27 March 2019
Jason Hartman starts the episode off with his in-house economist Thomas and the two discuss various parts of a mortgage payment and how each interacts with the other. They also compare whether a 15 or 30 year mortgage makes sense in an inflation or deflationary environment.
Then Jason speaks with a new LMS who is offering properties in the central PA area, including York. The LMS explains what markets are supporting the local economy, general tenant profiles, rehab practices and property types that are available.
[2:01] What makes up a mortgage payment?
[5:39] Even with a slightly higher interest rate, Jason believes the 30 year fixed rate still beats the 15 year.
[7:18] Why is South Central, PA a good place to invest?
[10:08] The target tenant for the market and what employers are supporting the economy
[14:30] How transportation fuels the network of the area
[16:18] The target property and renovations done
[21:00] The rehab process
[29:56] Looking for the catch in the market, whether it be Section 8, insurance or property taxes
Tue, 26 March 2019
Jason Hartman wraps up day 2, Sunday, from Meet the Masters. With one visitor travelling 22 hours from Australia and nearly 100 people streaming online, the event was a massive success. Listen in as we hear some live clips from Jason, home inspectors, George Gilder from Life After Google, Mani from 2,000 Books, Drew Baker on self-management and more.
Mon, 25 March 2019
Today's episode is all about the first day of Meet the Masters. Hear from attendee Lisa as she discusses why you should come to the event and what she's hoping to get out of Meet the Masters, some tax information from Tom Wheelwright, some lending knowledge from a panel of Jason's lenders, a discussion of rehabs that Local Market Specialists are doing to the properties you're purchasing through our network and more.
Fri, 22 March 2019
Today's Flash Back Friday comes from Episode 367, originally published in March 2014.
Mike Murphy of the CPA firm Murphy, Murphy, & Murphy is one of the lauded experts invited to speak at the 2014 version of Meet the Masters of Income Property Investing back in January. The topic is one near, dear, and feared by property investors – real estate taxes.
There's an old saying, "Nothing is certain but death and taxes." Taxes are a fact of life. Although the prospect of dealing with taxes is not especially appealing, Jason has been extolling the tax benefits associated with rental real estate for years. As America's most tax-favored asset, it can put money back in your pocket (or keep it from ever leaving in the first place) better than anything else.
Mike delves into a topic that often confounds our best attempts to understand it. According to current U.S. tax laws, virtually any funds an investor directs toward maintaining or improving an investment property can be tax deductible. Some deductions can also apply to periods of vacancy – the so-called Passive Activity Loss Break – as well as non-cash write-offs for the simple depreciation of the structure itself, calculated over the period of almost three decades.
An important point Murphy makes early is that an investment property is broken down into two components: land and the structures on the land. While the cost of the land itself isn't tax deductible, the structure is, which means the residential building you buy in order to rent out to a tenant. Tax breaks flow from the structure, and here are several you need to understand as an investor.
Thu, 21 March 2019
Jason Hartman does the show from the car on his way to Meet the Masters this weekend. Before he gets to his guest, however, he wants to share an old clip he put together several years ago that still has significant relevance discussing the principle of I.D.E.A.L.
Then Jason talks with Cliff Hayden, creator of Show Me the Rental, about how he started his business, what his software does, and property management tips for real estate investors.
[2:25] The I.D.E.A.L. principle
Cliff Hayden Interview:
[11:40] What frustrated Cliff enough to create Show Me the Rental
[13:35] How Show Me the Rental works
[17:34] Some sample questions Cliff's software might use
[21:50] What platforms Show Me the Rental connects with
[23:17] Cliff's property management tips
Wed, 20 March 2019
Jason Hartman starts the show talking to in-house economist Thomas about the things that impact your mortgage payment when you first get your loan. Some of them are pretty obvious, but there are several things that stand out as uncommon.
Then Jason talks with Raghuram Rajan, former Governor of the Reserve Bank of India and former Chief Economist and Director of Research at the International Monetary Fund (IMF), about how community has been weakened, which has allowed competitive markets and governments to get out of balance. They also discuss what jobs will remain after automation takes off even more, mortgage rates and whether we're headed toward inflation or deflation.
[2:52] What sorts of things impact your mortgage payment when you first receive your loan
[4:55] There are some new credit scoring models that are becoming more prominent
[9:26] If interest rates start to climb too high, adjustable rate mortgages might start making a comeback
Raghuram Rajan Interview:
[13:45] What the IMF is and how it differs from the World Bank
[18:40] Massive technological change tends to hit an area and hurt before the benefits kick in later
[21:51] After automation comes and takes many of the jobs, there will still be jobs that involve human interaction
[27:11] Is Raghuram seeing inflation, deflation, stagflation or what in the coming years?
[29:54] Are mortgage interest rates artificially low?
[34:38] There's good deflation and bad deflation
Tue, 19 March 2019
Jason Hartman and Adam start off today's show discussing the way Amazon treats their employees and how they don't operate in a truly free market. There are some options to create a more even playing field, which many libertarians (which Jason considers himself one) don't like the sound of.
Then Jason talks with Ryan Minekime, co-founder of REIanalyst, about how his tool allows investors to whittle down their list of potential properties quickly.
[3:25] Too much financial "news" we get now is really just financial entertainment
[11:44] Amazon has pushed everyone else out, making it hard to shop anywhere else
Ryan Minekime Interview:
[19:01] REIanalyst was born out of a need Ryan had to see more properties in less time
[22:10] How Ryan's data is figured out when making assumptions on properties
[24:53] Where REIanalyst gets their data
[28:47] Information for investors is severely lacking
Mon, 18 March 2019
Jason Hartman and Adam start today's episode discussing how people who are fleeing high tax areas are getting audited by their original state to ensure that they have actually left. The ways they have to track you now are such that faking it will get you caught, and it's just not worth it. Make it a plan to leave and move to a no income tax state and do it!
Then Jason talks with client Ira Boyd about his journey in real estate investing. Ira started off purchasing properties on his own, with some success but not as much as he'd hoped. After he found Jason's network, however, he's gotten in much better properties and is up to 12 investment properties and his personal residence. Ira discusses how live events aided his journey, where he sees his future in real estate investing, and what areas he thinks he needs to work on.
[6:49] States creating an economic Berlin Wall
Ira Boyd Client Case Study:
[16:28] It's almost better not to see the property, because then you're buying based on intellect and not emotion
[19:46] Meet the Masters gave Ira the traction he needed to start investing through Jason's network
[22:57] Ira can't stress enough how much you need to go to an event and how helpful it will be
[27:24] Ira's plan for his portfolio
[31:20] Ira's policy on rent increases needs work
Thu, 14 March 2019
1150: George Gilder's New Economic Theory & Short Cuts To Happiness & Happier by Tal Ben-Shahar of Happiness Studies Academy
Jason Hartman begins today's show with some updates about next weekends Meet the Masters event. He also has another update from keynote speaker George Gilder, who explains a little about the new economic theory he's been contemplating and how he'll present it at Meet the Masters.
Then Jason talks with Tal Ben-Shahar, co-founder of The Happiness Studies Academy and best-selling author of Happier and the new book, Short Cuts to Happiness: Life-Changing Lessons from My Barber, about how you measure happiness, predictors of happiness and what sorts of things Tal was able to learn from his barber. They also discuss whether Millennials and Generation Z to see if they've been coddled too much or if we've just learned how to better communicate with them.
[3:32] George's new theory that's based on Information Theory
Tal Ben-Shahar Interview:
[11:30] How do you rate a country's happiness?
[13:57] There's only one thing that predicts happiness levels on a national level
[18:16] The hazards of social media on happiness
[20:18] Lessons learned from Tal's barber
[25:48] How to praise people properly to encourage growth
[28:37] If you don't teach people to face reality then you're setting them up for failure
[32:01] The first step toward happiness is, surprisingly, allowing in unhappiness
Wed, 13 March 2019
1149: Mortgages as Bonds & Peak Trump, The Undrainable Swamp & the Fantasy of MAGA with Blackstone co-founder David Stockman
Jason Hartman and Adam tackle a potential sign that we're entering more financial risk as mortgages that aren't backed by the government are being bundled together and sold as bonds in the marketplace. It's not being done on a grand scale YET, but it's a practice that's growing quickly and steadily. Remember, this is part of what caused the Great Recession, so it's something worth watching.
Then Jason talks with David Stockman, former budget director for President Reagan, former US Representative for the 95th Congress, former partner at The Blackstone Group and author of the new book Peak Trump: The Undrainable Swamp and the Fantasy of MAGA. The two discuss Reagan's failure to curtail spending like he'd originally wanted, the difficulty Trump is having actually "draining the swamp", the impact of increasing debt on inflation and whether it's sustainable.
[2:55] Non Fannie & Freddie backed loans are being packaged and sold as bonds once again
[8:49] Meet the Masters is going to feature new topics such as home inspections and a presentation by a client about self-management
David Stockman Interview:
[13:55] Reagan got very little in way of his proposed spending cuts, but got a much bigger tax reduction than proposed, then defense spending exploded
[17:36] Trump's problem was that he recognized the economy was failing but didn't have a program to address it
[22:41] Does our escalating deficit mean inflation is on the horizon?
[27:02] Is our private debt really that bad?
[30:47] How investors should position themselves for the next few years
[33:35] We've learned in the last decade that Central Banks can't cause inflation on a worldwide basis
Tue, 12 March 2019
Jason Hartman begins today's show with one of the speakers for Meet the Masters that's coming up in less than 2 weeks, Mani Vaya. Mani is the host of the 2,000 Book Podcast, and the two discuss how you can read (or listen) to a book quickly and still retain the information you're seeing (or hearing).
Then Jason talks with Jason Franciosa, CEO & co-founder of Element 26, about the time value of money. Both Jason's are concerned about inflation, and the two look at ways you can maintain your leverage so your returns can beat inflation, as well as how you can utilize your home loans to house hack (especially if you're in the military).
[5:21] Mani will be presenting at this year's Meet the Masters
[7:51] Mani is going to cover how to actually read a book for maximum learning
[10:45] How Mani is able to listen to the stories at 2-3x speed
Jason Franciosa Interview:
[20:00] Jason's 6 ways governments can get out of debt
[22:32] The time value of money
[27:11] You have to have a way to maintain the leverage you have
[31:55] How you can utilize house hacking
Mon, 11 March 2019
1147: Lyft IPO & Client Case Study Investing at Age 25, Overcoming Challenges & Self-Management, Lisa Tomita
Today's show begins with Jason Hartman and Adam discussing how investors are taking a big risk (and breaking Commandment #5 in the process) if they take part in buying the stock for a company that's never turned a profit.
Then Jason welcomes Lisa Tomita, a client with 4 properties who has recently decided to self-manage two of her properties. Jason and Lisa discuss the ups and downs of investing and how self-managing has turned Lisa into a more empowered investor ready to deal with all the bumps along the way as she moves closer to her financial independence.
[3:34] Lyft is going public, but it may not be a good idea to buy in to the company
[7:57] If you're going to buy stocks, at least buy dividend stocks
Lisa Tomita Client Case Study:
[15:04] Lisa's tenant saved her $200 because of the relationship they've developed
[19:53] Lisa recently quit her job so she could focus full time on real estate
[23:58] Self-managing has made Lisa feel more empowered and learned
[28:23] One of Lisa's deals that hasn't gone well broke 4 of Jason's 10 commandments
[34:58] Income property is so durable it's like the self-healing asset
Fri, 8 March 2019
Today's Flash Back Friday comes from Episode 364, originally published in March 2014.
Join Jason Hartman as he discusses cash flow, real appreciation and geographic diversification as it applies to his, not Albert Einstein's, theory of real estate relativity. You'll hear a valuable comparison of a typical Santa Ana, California property with a Birmingham, Alabama and an Atlanta, Georgia property. How do they stack up? Jason will lead you through an in-depth look at rent-to-value ratios (RV Ratio), historical appreciation rates of linear and cyclical markets, as well as hybrid linear/cyclical markets. This comparison may surprise you in several ways. What's better A $455,000 house that rents for $2,500 per month to six people? Or several $52,000 houses that rent for $700 per month? The same concept can be applied to large multi family apartment complexes and across every geographic market or metropolitan statistical area (MSA).
Next up, Jason talks to one of his lenders about reverse mortgages, a growing trend with broader implications on the real estate market and the economy as a whole.
Thu, 7 March 2019
1145: Wall Street Lies About Real Estate Returns & Glass House, The 1% Economy & the Shattering of the All-American Town, Brian R. Alexander, NBC
Jason Hartman begins today's show in disbelief at some of the "news" articles he's been seeing lately about the best performing asset classes in 2018. The claims that cash was king are being shouted near and far, but there's a distinct problem with how real estate was measured that makes their whole metric false.
Then Jason talks with Brian R Alexander, author of the new book Glass House: The 1% Economy and the Shattering of the All-American Town, about the state of today's world and the impact Wall Street investing has had on us. There has been a steady decline in community and a massive disconnect between the uber-wealthy and the average American. Listen in as Jason and Brian talk about the root causes of the problem and ways we can combat them.
And don't forget, Monday is the ABSOLUTE LAST DAY FOR THE HOTEL ROOM BLOCK for Meet the Masters, so book your room now if you haven't.
[2:53] "What comes around goes around" but it can take a long times sometimes
[5:14] NASDAQ.com is claiming the best performing asset class in 2018 was cash
[8:54] Appreciation in cyclical markets is the only metric many outlets use for determining ROI for real estate
Brian Alexander Interview:
[14:15] The premise of the 1% economy
[16:23] What is "Green Mailing"?
[20:58] The demise of community in our lives today
[25:22] There's a massive disconnect between the elite insider Wall Street class and the common investor
[29:45] The actions of companies and uber-wealthy investors is hurting the mental psyche of every day Americans
[32:39] Capital formation in the US is very much a winner-take-all proposition
Wed, 6 March 2019
Jason Hartman and video director Chad use the intro of today's episode to go over some of the comments made by viewers of Jason's YouTube videos, as well as announcing who the winner is for the contest.
Then Jason speaks with Matthew Sullivan, founder & CEO of Quantm Real Estate, about how his company is using blockchain and tokens to help homeowners pull equity out of their homes (whether owner occupied or investments). Matthew uses a few case studies to explain how much money you could extra, what you would owe his company, and how the secondary market works for the equity stake his company receives.
[3:39] Jeffrey's comment on "Home builders made a big mistake"
[7:46] Abdula was amazed by "How to Maintain Control of Your Investments" about how many people take a cut before you get paid when you don't have direct control
[11:39] The winner of the YouTube challenge!
Matthew Sullivan Interview:
[18:22] Matthew's company allows you to get equity out of your house without taking out another loan with a bank by buying some of the future value of your house
[21:19] Case study: How much can you pull out if you were to have a $100,000 house with a $50,000 mortgage?
[27:35] Why Quantum Real Estate goes through the hassle of creating a REIT and tokenizing them equity share
[32:17] The effective "interest rate" for homeowners who realize their equity
[36:27] Quantum Real Estate revalues their portfolio every 3 months so the secondary market can trade
Tue, 5 March 2019
Jason Hartman begins today's show discussing some of the cyclical markets that have seen their housing bubble burst, as well as some non-cyclical markets that could be in danger of the same thing. One of them, Colombus, surprised him.
Then Jason talks with Edwin Kelly, founder & CEO of Specialized IRA Services, about some of the creative ways you can use your self-directed IRA to invest in non-stock market related assets. Edwin provides several case studies that show the power of self directing, as well as his "Triple D" process to help you on your way.
[5:01] Cyclical markets have seen their housing bubbles burst and now it's starting to spread to other cities
[7:16] People buy homes based on payments, not total price.
[11:07] Colombus, OH is on the list of potentially being at risk of a bubble burst
Edwin Kelly Interview:
[15:07] What is a Self Directed IRA and what kind of assets can you use them for?
[17:56] Some unique strategies people are using in their IRAs
[20:28] Borrowing against your solo 401k as a strategy
[25:57] The Triple D process of Self Directed investing
[27:47] The costs of using self directed funds
Mon, 4 March 2019
Jason Hartman and Adam take a look today at some sectors of society that have been hit hard by inflation and deflation over the past 20 years. Technology has done a good job at keeping the cost of many things in check, but not every sector is reliant on it so some areas have seen skyrocketing costs.
The two also answer listener Brian's question about determining what costs you can hold back from your tenant when you're doing a make ready after the tenant moves out and give out the March Mortgage Minutes from Lender Aaron.
[4:02] A look at inflation for the last 20 years, by sectors
[8:42] The overall inflation in the past 20 years is roughly 56%
Adam's Mortgage Update:
[12:18] Investors with good credit are looking at mortgage rates in the mid-5%
[15:33] The rate of mortgage applications has been pretty steady over the past 12 months
Jason & Adam:
[22:49] How the Service as a Software (SaaS) has been impacted by inflation
[27:28] Some make-ready tips to save you money in the long run
Fri, 1 March 2019
1141 FBF: G. Edward Griffin - A Crash Course on Money & Freedom, The Creature from Jekyll Island, A Second Look at the Federal Reserve
Today's Flash Back Friday comes from Episode 664, originally published in April 2016.
We are rapidly losing our freedom, so says G. Edward Griffin. Griffin is the author of the seminal work The Creature from Jekyll Island, he is the President of the American Media/Reality Zone and the force behind the Freedom Force International Movement. This is Mr. Griffin’s third time on Creating Wealth. He shares his wealth of information on the beginning of the Federal Reserve, the way our freedom is being depleted and the monetary scam which is our unrepayable debt.
[2:42] The Central Banking Cartel influences the context of our lives.
[11:44] Align your interests with the most powerful forces the human race has ever known.
G. Edward Griffin Guest Interview:
[16:26] The history of how the Federal Reserve came to be on Jekyll Island, Georgia.
[24:12] Most transactions in the 1900’s before the Fed was created, were conducted in gold bullion and silver.
[28:47] Supply of precious metals is limited and the effort to extract them is great, hence the value.
[31:06] The scam of lending money is ethically reprehensible.
[37:07] The Creature from Jekyll Island book is unfolding exactly as Mr. Griffin was afraid it would.
[41:58] There are only two ideologies in the Western World and they are Collectivism, which is the idea that the group is more important than the individual and Individualism.
[49:56] Freedom comes when the individual are protected against the passion and greed of the majority.
[53:09] Where do the origin of human rights come from?
[1:00:36] Contact information for G. Edward Griffin
Mentioned in This Episode:
Thu, 28 February 2019
CW 1140: Listener Questions & The Laws of Human Nature, Famous Author on Power & Strategy, Robert Greene
Jason Hartman and Adam start off today's show discussing listener Brandon's question about living above or below your means. It's important to keep things in perspective as you're deciding how to live your life because just getting more stuff doesn't necessarily make you happier.
Then Jason talks with Robert Greene, author of the new book The Laws of Human Nature as well as New York Times bestsellers like The 48 Laws of Power and The 33 Strategies of War, about how to approach people to put yourself in the best position for success as well as how to best change your life and circumstances. Robert goes over a few of his 18 laws to help you on your way.
[4:45] Should you live above or below your means?
[10:38] Money gives you choices, and choices can make you happy
Robert Greene Interview:
[16:08] Misjudging people is extremely expensive, and it's getting even harder to do with everything becoming virtual
[18:27] Thinking about what other people need or are going through is one of the most important life skills you can develop
[21:42] When you ask someone for anything, they are naturally going to be resistant
[24:47] We are emotional creatures, largely governed by our emotions
[36:20] You can change your own life and circumstances by working on your attitude
[39:56] The biggest impediment in people's lives is the inability to affect or influence the people around them
Wed, 27 February 2019
CW 1139: George Gilder & Modern Money Theory, A Primer on Macroeconomics for Sovereign Monetary Systems & Understanding Modern Money MMT by Professor Dr. Randy Wray, Levy Economics
Jason Hartman and Adam start off today's show discussing one of the keynote speakers for this year's Meet the Masters event, George Gilder. Gilder has quite the history and the two break down what he did back in the 90s, what he's doing now, and why he's still relevant.
Then Jason talks with Dr. Randy Wray, one of the foremost experts in Modern Monetary Theory, about why Minsky the philosopher is important, what exactly MMT is and why it's relevant in today's monetary society. They especially tackle the job guarantee program that MMT espouses and what's coming up for the US in the economy for the next few years.
[4:34] George Gilder is a thought leader today just like he was 20 years ago
[7:31] When Gilder spoke back in the 90s the markets moved
Dr Randy Wray Interview:
[12:26] Who is Minsky and why is he someone we should concern ourselves with?
[15:43] What is Modern Monetary Theory and why is it applicable?
[21:31] The governments going back to the colonies spends money into existence and then taxes it back to avoid causing inflation
[24:38] Has all the money that was put into the economy during Obama's term been taken back out by taxes or is it causing inflation?
[28:51] The test you need to use to discover if you're doing monetary policy correct
[32:48] Spending during The New Deal greatly helped move our nation forward and allowed us to become the richest, most developed nation on Earth
[36:49] The job guarantee that Dr Wray is focusing on now would involve a lot of care work, and it would be decentralized
[39:58] What's coming up, economically, for the United States
Tue, 26 February 2019
Jason Hartman and Adam tackle the subject of millennials in today's episode. They might start out talking about millennials feelings and whether we should put labels on people in society, but the crux of the show is based on their cohort's home buying habits. After years of waiting, millennials are finally venturing into the market, and their numbers might move the market but their habits definitely create some risk but also leave some wiggle room for safety.
Also, don't forget to enter the Meet the Masters YouTube raffle to get either a free ticket to the 2019 Meet the Masters or a $500 travel allowance!
[6:10] Millennial mortgage habits are different than previous generations
[12:23] A housing shortage story from one of Jason's older blogcasts
[18:33] The dangers of a centrally managed economy and government intervention through things like Fannie and Freddie
[22:20] If Fannie and Freddie got out of the market it would cause a huge upward pressure in rents for investors
[26:44] Millennials saw their parents go through the Great Recession, many of them losing their homes. That will impact their home purchase habits
Mon, 25 February 2019
CW 1137: Portfolio Makeovers & Very Human Future - Enriching Humanity in a Digitized World by Fast Future's Rohit Talwar
Jason Hartman talks with investment counselor Doug today about portfolio makeovers. After you've purchased your properties, it's important not to let your equity get lazy. Hear from Doug and Jason about how to figure out if you're ready to utilize the equity that's in your investments. Also, don't forget to enter the Meet the Masters YouTube contest for a chance at a free ticket to Meet the Masters or a $500 cash allowance for your trip!
Then Jason talks with Rohit Talwar, founder of Fast Future Publishing and author of A Very Human Future, about what we can do about the large companies who seem to be in a winner take all society, how life and body hacking are going to change the world, and more.
[2:20] Your return on investment declines as you start getting lazy money in your investments
[6:19] When Cap Rates can actually be helpful in single family investing
Rohit Talwar Interview:
[13:27] What is value?
[20:30] The 4 views people have of companies like Facebook and Google
[24:06] 3 types of exponential thinking
[28:24] Rohit's example of pooled insurance
[33:08] What are we going to do with the people who are displaced by technology?
[36:13] Body hacking may give us advantages in areas that won't matter in the future due to automation
[37:37] What we need to change in order to have a more optimistic future
Fri, 22 February 2019
Today's Flash Back Friday comes from Episode 354, originally published in December 2013.
Join host Jason Hartman and, not one, but TWO special guests on episode #354 of The Creating Wealth Show. First up is Jason’s mom, who returns to the show for the third time (by popular demand) to discuss the idea of grit when it comes to life in general and income property investing in specific. The question they bat around is “What makes for a successful property investor and successful human being, and what does grit mean anyway?” You won’t want to miss her story about a recent eviction she undertook on a California property tenant, nor how her life’s passion of living in a mansion with columns came to pass.
Following his mom’s segment, Jason welcomes credit repair expert, Steve Paige, to the telephone. Steve has logged almost three decades in the trenches in helping consumers understand the fact, fiction, and misconceptions that abound in the credit report score industry. Steve is, by far, the nation's leading credit pathologist. He founded three of the nation's largest credit repair firms and, in the process, revolutionized the approach to consumer credit issues by focusing on re-scoring techniques rather than credit report manipulation and repair, the results of which produce far greater benefits— for less money.
Thu, 21 February 2019
Jason Hartman and Adam are back today to field some listener questions. They tackle hyperinflation, saving up for your first investment property, and why worker confidence is high but the real estate market is slowing.
After the questions have been answered, Jason finishes his story about surviving a bear attack.
[4:17] Buying 10 financed rental properties can easily beat 1 paid off investment
[10:02] The Hartman Health Care Hack
[14:16] Listener Question from Josh: Inflation Induced Debt Destruction in places of hyperinflation like Venezuela currently
[20:21] Worker confidence in finding a new job is high, but home sales are lower than they've been in a decade, what's the cause for discrepancy?
[23:48] Listener Question from Zack: how much should he save before investing in his first rental property?
[26:05] Listener Question from Michael: Finish the bear attack story!
[32:01] Some of Jason's favorite quotes
Wed, 20 February 2019
CW 1134: Minimum Wage Increases & Masters Speaker & Rich Dad Advisor Tax Free Wealth by Tom Wheelwright
Jason Hartman and in-house economist Thomas get together at the beginning of today's show to discuss the expected economic impact of numerous states and local municipalities increasing their minimum wage this year, as well as why retail numbers are not coming in well this year.
Then Jason talks with Tom Wheelwright, 2019 Meet the Masters speaker and Rich Dad Advisor, about how to help yourself in your legal tax avoidance using practices such as real estate professional, whether Opportunity Zones might be worth investing in, and why taxes tend to be higher when you retire.
[3:07] The minimum wage will be increasing in a lot of places around the country in 2019. How much effect does it really have?
[7:39] Retail numbers for the start of 2019 are not good, what should we be attributing that to?
Tom Wheelwright Interview:
[13:14] The question you need to ask yourself if you can't qualify to be a real estate professional
[17:18] One of the most underutilized assets people have is other people's tax brackets
[19:06] Tom's views on Opportunity Zones
[23:14] The pass through tax deduction and how it applies to real estate investors
[27:18] Being a real estate professional can sometimes mean you can take early withdrawls from an IRA and actually completely negate the penalties
[30:25] You tend to lose a lot of deductions when you retire, so your planning leading in to retirement is crucial
[31:59] The 2 challenges with Roth IRAs when it comes to investing
Tue, 19 February 2019
Jason Hartman starts off today with a look at ways that the government is trying to control capital by questioning transactions like his recent purchase of his home. Now they're requiring certain purchases by LLCs and Corporations to list their owners in a registry, which could serious harm your anonymity when protecting your assets.
Then Jason finishes his interview with Dan Amerman, CFA and author of books such as Mortgage Securities and Collateralized Mortgage Obligations: Unlock The Secrets Of Mortgage Derivatives, about the correlation between Fed actions and yield curves, how to look at inflation and self-liquidating debt.
[3:50] There's a lot of capital control going on today
[7:52] 1984 and Brave New World are coming truer and truer
[11:58] Musical entertainment for Meet the Masters is about to be booked
Dan Amerman, Part 2
[18:29] Certain Fed actions and yield curve inversions seem to have a correlation
[22:03] The 2 ways to look at inflation
[25:25] The self-liquidating debt
Mon, 18 February 2019
Jason Hartman begins the show with his in-house economist Thomas discussing two differing population models: the UN population model and the Empty Planet model. Our world is currently entering a population phase previously unseen and it could have a serious impact on our world.
Then Jason begins his interview with Dan Amerman, CFA and author of books such as Mortgage Securities and Collateralized Mortgage Obligations: Unlock The Secrets Of Mortgage Derivatives, about how a heavy handed Fed has changed how inflation and housing have correlate to each other, why the Fed reacts to quickly, and what the Fed is setting interest rates up to do.
[4:55] The UN Population model vs the Empty Planet model
[8:46] We're entering Stage 5 of the demographic transition theory, which is something nobody's really ever seen before
[13:22] Jason's most recent book suggestion
[15:33] What does this coming population shift mean to investors?
Dan Amerman Interview:
[20:44] The Federal Reserve is getting more heavy handed as years go by, and hints of a coming recession could lead to more intervention
[25:38] Housing tracked inflation better than gold until the Federal Reserve got real heavy handed after 2001
[30:27] The Fed reacts too quickly to things
[32:06] Dan's prediction of where interest rates are about to head
Fri, 15 February 2019
Today's Flash Back Friday comes from Episode 292, originally published in December 2012.
Jason Hartman talks with a listener about local vs. long distance real estate investing and how geography is less meaningful than ever before in history. Then today’s guest is loan manager, stock trader and financial columnist, Logan Mohtashami with a no-spin discussion on the fiscal cliff and other current events.
Logan Mohtashami is a senior loan officer at his family owned mortgage company AMC Lending Group, which has been providing mortgage services for California residents since 1988. Logan is also a financial columnist for Benzinga.com and contributor for BusinessInsider.com and writes on financial matter relating to the housing market and basic economics.
Thu, 14 February 2019
Happy Valentine's Day!
In order to celebrate today with a 10th episode, Jason Hartman talks with Richard Marek, former President of EP Dutton, editor of James Baldwin, Robert Ludlum, Peter Straub, Ben Stein and more, about his new book How to Fall In Love: A Novel. There's quite a bit that goes in to falling in love, and Jason and Richard explore what all it entails and how our society is turning its head on the ways that have worked (and will continue to work) since the beginning of time.
Before that, Jason and Adam discuss 2 real estate scams you need to be sure and avoid. The first involves appraisals and the other involves giving up your control.
[6:02] How some providers are using their purchasing power to manipulate sales comps
[9:35] Some turnkey providers want to convince you to only work with them because they're the seller and they have more control, but the control is what causes the problem
[14:04] When the economy turns is when we'll see who the real providers are
Richard Marek Interview:
[17:51] How do you fall in love?
[19:58] Richard doesn't think technology is helping in the love part of relationships today
[23:27] We have an entire generation who's unwilling to even pick up a phone and call someone
[28:34] What are ways we can combat the tech craze?
[30:39] Why is it healthy to fight?
[35:31] Where is the publishing industry headed?
Wed, 13 February 2019
CW 1129: High-End Apartments, 4% Rule & Self-Management Tool for Landlords by RentRedi's Ryan Barone
Yesterday, Jason Hartman talked about the number of apartments being built in the US being the highest since the 1980s. Today, Jason and Adam talk about how an immense number of those apartment units are of the high-end variety, and what that might mean for our economy if there's a slowdown.
Then Jason talks with Ryan Barone, CEO & Founder of RentRedi, about his new self-management tool and the benefits it gives to landlords. The two discuss how technology has changed the landscape of investing and who RentRedi is most likely to help.
[2:25] 80% of new apartment construction is high-end
[10:41] Living your life based on the mood of the stock market is no way to live
[15:09] Living off a 4% draw is risky if the market has a downturn
Ryan Barone Interview:
[20:44] What does RentRedi offer to the landlord?
[24:34] Who is the target audience for RentRedi?
[29:40] Technology has changed investing drastically
Tue, 12 February 2019
CW 1128: New Apartment Construction, 2018 Econ Review & 2019 Predictions by Dr David Collum, Cornell University
Jason Hartman begins today's episode with a look at the number of new apartments that were constructed in the USA in 2018. The number is the largest since the 1980s, but does that mean we're overbuilt and what does that mean to single family rentals?
Then, Jason talks with Dr David Collum, Professor at Cornell University, about his 2018 Year in Review report and what he's expecting in 2019. The two tackle the skewed CPI numbers, the impact of stock buybacks and how the next unwinding in our economy is going to happen.
[3:50] 267,900 apartment units were completed last year, the most since sometime in the 80s
[10:45] How much men and women spend on their partner for Valentine's Day
[12:27] Married home owners are seeking roommates to help pay rent
Dr David Collum Interview:
[17:12] What happened in 2018, economically speaking?
[21:44] CPI numbers started getting skewed in the 1970s
[25:55] Is there any gain from stock buybacks?
[29:37] Ultra low rates allowed institutional investors to come in to the single family housing market
[34:00] How the next unwinding will happen
Mon, 11 February 2019
CW 1127: 2019 Investment Outlook, Gentrification, Opportunity Zone Hype, NeighborhoodScout by Andrew Schiller
Jason Hartman talks with NeighborhoodScout's Founder & CEO, Andrew Schiller, about his company's predictions for the hottest appreciating markets in the US for 2019. Andrew lists the top 10 markets expected to appreciate as well as how to identify an area that's poised to make a turnaround.
[7:33] National numbers are all well and good, but they don't really matter near as much as local numbers
[9:03] Some of the hottest forecasted appreciation markets in 2019
[12:45] How big are Census Tracts and Micro Neighborhoods?
[17:05] What factors makes a neighborhood turn around?
[21:10] Property crimes are much less an impediment to property values as violent crime
[26:43] How do you use Neighborhood Scout to figure out if a neighborhood is turning around?
Fri, 8 February 2019
Today's Flash Back Friday comes from Episode 327, originally published in July 2013.
Jason Hartman is joined by Phil from Dallas who asks Jason about his journey of entrepreneurship. Jason gives his backstory, his path to success and how it was all made possible by living below his income (and making a very good income as a real estate agent while doing it). Phil and Jason also explain how the internet has impacted the entrepreneurship of Americans and one lesson Jason learned from his mother that helped shape his idea of business.
Thu, 7 February 2019
Jason Hartman takes today to discuss the glorious rental demographics that are sticking around from his prediction several years ago that the next 10 years will be great for landlords. Now he's pushing that prediction back for 10 years from now because the demographics are just so good still. With all the possibility out there, however, don't feel the need to rush after the shiny objects out there like "Opportunity Zones". Rather, take your time, do your homework, and make sure it's the right thing for you.
Then Jason talks to his in-house economist Thomas about the World Economic Forum in Davos and what came out of it. Thomas gives his predictions for the next 2-3 years, why some looming deflation might be a good thing, and whether we're in a 4th leg of the Industrial Revolution.
[3:24] The demographics of the rental housing market are nothing short of phenomenal for the next 10 years
[8:28] Hedgefund billionare Seth Claireman issued a dire warning at Davos
[18:37] Thomas sees some deflation coming up and doesn't think it'll be that bad
[22:39] Price discovery happens once we've put all the unused assets to work
[26:12] As long as GDP growth + Inflation is higher than the 10 year note, the economy is okay
[34:07] Are the next 5 years going to give us good or are they bringing bad?
[35:16] We're in the midst of the 4th industrial revolution and things are good
Wed, 6 February 2019
Jason Hartman has been in the Baton Rouge market before, but haven't been there for a while. Now, however, an old LMS is back with new, built-to-rent, construction that provides some solid return on investment. Jason talks to him about why he's back in Baton Rouge, what the new construction looks like, and the pervasiveness of institutional investors that drove him out of the Atlanta market.
Prior to the market profile, however, Jason talks about the concept of iterations, and why it's so important to not get discouraged over initial failure. You have to learn to constantly improve and always be searching for your advantage.
[2:26] The concept of iteration
[7:12] We need to stop believing we're going to get things right the first time we do them
[13:20] If you never have the hard times you can't appreciate the good
[15:18] Give your kids roots, but make sure you also give them wings
Baton Rouge LMS Interview:
[19:49] What kind of properties are being built in this round of inventory
[24:51] Every apartment complex is a build-to-rent deal, but single family build-to-rent is becoming a bigger and bigger market
[27:31] Institutional investors come in with massive amounts of capital that has to be deployed quickly, and it has led them to accept lower returns
[31:25] Are any of the new properties assisted housing?
Tue, 5 February 2019
Today Jason Hartman and Adam answer a listener question about Inflation Induced Debt Destruction, discuss the latest economic numbers that impact the housing market and why requiring things like affordable housing is a destructive practice for governments. Then Adam sits down with Joe the Lender for the February Mortgage Minute.
[6:21] Companies make a LOT of money off unredeemed items
[9:28] Listener Question: Seneca's question about Inflation Induced Debt Destruction
[17:05] The latest Consumer Confidence, Case-Shiller Index and New Home Sales numbers
[20:20] California is suing Huntington Beach for not having enough affordable housing
[24:26] February Mortgage Minute
[29:23] Mortgage starts for Joe were a little flat toward the end of the year but have been getting better this month
Mon, 4 February 2019
Jason Hartman and Adam take aim at where inflation is actually rearing its ugly head in today's world. The cost of goods is still cheap, but a lot of services are becoming more and more expensive by the day.
Then Jason answers a question from listener Fred about the number of single family homes you can own and why Jason diversified into multi-family and mobile home parks as well. Finally, Jason identifies the hardest part about owning each of the different types of real estate.
[4:16] Inflation in the SaaS world
[9:10] Inflation is hard to measure because goods are cheap, but services can be incredibly expensive
[12:56] Does your investment portfolio have termites?
[18:13] Listener Fred asks if there's limit to the number of single family homes that you can own without being overwhelmed., as well as why Jason also invests in multi-family and mobile home parks
[22:39] Diversify, BUT NOT TOO MUCH
[28:41] The hardest part about owning single family, multi-family and mobile home parks
Fri, 1 February 2019
Today's Flash Back Friday comes from Episode 327, originally published in July 2013.
Jason Hartman is joined by Michael who asks Jason the questions that listeners are asking. Jason explains what he would do if he were a brand new investor, some basics on self-management, a few property profiles, and the myth of higher returns on higher investments. That $5 million dollar multifamily complex isn't likely to outperform your single family rental.
Thu, 31 January 2019
CW 1120: Truthful Living: The First Writings of Napoleon Hill & The Little Red Book of Selling by Jeffrey Gitomer & Meet the Masters Speaker Announcements
Jason Hartman starts off the show with an important announcement about Meet the Masters of Income Property coming up in March. There are two new speakers signed and because of the announcement early bird pricing has been continued until Wednesday, when prices will go up again.
Then, Jason goes off topic with Jeffrey Gitomer, New York Times Best Selling Author of The Little Red Book of Selling and Truthful Living: The First Writings of Napoleon Hill, about some of the great mentors that the two have had in their lives which include Napoleon Hill and Earl Nightingale. They look at what history can teach us, the right way to approach sales, and the challenges we have to face to do the right thing in today's world.
[3:11] Meet the Masters Speaking Announcements: George Gilder & Tom Wheelwright
Jeffrey Gitomer Interview:
[12:30] The challenge to do the right thing in our society has never been at a higher level than it is today
[17:13] The 5 point rule
[22:34] The 7 Success Rules
[26:28] If you have the right service and attitude heart, sales will be easy
[32:41] If you want to learn something new, read a book that's 60 years old
Wed, 30 January 2019
Today's show is all about helping you grow your real estate portfolio as tax free as possible. When you are ready to sell one property and purchase other ones with the proceeds there's no need to pay capital gains taxes at that time when you have a vehicle like a 1031 exchange. Join Jason Hartman and Dino Champagne, Los Angeles Division Manager & VP at Asset Preservation Incorporated, as they discuss the strategies, the complexities and the savings that 1031s can provide.
[5:17] How a 1031 Exchange works
[7:51] Try and avoid a reverse exchange as best you can, because they can get real tricky and lendors aren't fans of them
[9:48] The 45 and 180 day timeframe of a 1031 exchange
[12:37] The 3 different ways you identify properties in a 1031 exchange
[14:59] How much money can a 1031 exchange actually save you and your heirs? It's pretty astounding
[20:18] 1031 exchange accomodators aren't highly regulated, which has led to some scams over the years. What questions do you need to ask when you're searching for one?
[24:19] Changes the new tax law has made on 1031 exchanges
[26:50] Are Opportunity Zones overhyped?
[32:23] With Opportunity Zone investing being so new, vetting the sponsor of the deal is more important than ever
Tue, 29 January 2019
Today's show features Jason Hartman and Adam answering listener questions about capital gains taxes, 1031 exchanges, and Jason's preferred method of diversifying across real estate markets. Should you buy one home per market or multiple homes in one before moving to the next?
Then Jason and Adam look at an article about Warren Buffett's investing principle and how we can use his outlook in our real estate investing.
[3:45] Listener Question: Is there any way, other than a 1031 exchange, to sell real estate and not pay capital gains tax?
[9:02] Listener Question: How quickly should you diversify across multiple markets?
[16:33] Can the government negotiate the best rates anywhere?
[22:01] The one word that Buffett and Gate would offer you is...FOCUS
[24:04] The 3 things Jason invests in
[28:03] Warren Buffett's theory on value investing and working with people you trust is very much how you should invest in real estate
Mon, 28 January 2019
Jason Hartman starts today's episode discussing the recent World Economic Forum with economist Thomas Young. Specifically they look a bit at the "Happiness Index" that they were discussing at the forum and whether that should hold any muster for us.
Then Jason has a client case study with Eric Payne. Eric started investing in single family housing around 2010 and has steadily added to his collection. Today he has 18 units and is looking to substantially add more when he finishes the sale of his current business. Jason and Eric go over Eric's journey, why he chose to use real estate to achieve the financial freedom he desired and beauty of the 30 year fixed rate mortgage.
[3:07] What happened at the World Economic Forum this year?
[7:00] How important is the Happiness Index?
[13:50] Are we starting to approach a new cold war?
Eric Payne Client Case Study:
[17:29] Eric's start in his real estate journey made him realize that flipping is overrated and renting is the way to go
[19:09] A foreclosure Jason remembers from the Great Recession that he wishes he'd bought
[22:01] People tend to sabotage themselves by trying to time the market
[30:23] Eric's parents $118 mortgage made him realize how amazing a 30 year fixed rate mortgage is
Fri, 25 January 2019
Today's Flash Back Friday comes from Episode 287, originally published in November 2012.
Jason Hartman is joined by Larry Muck, the Executive Director of the American Association of Private Lenders, to talk about the AAPL’s history, mission and vision. Larry explains what private lenders are doing for people that the banks can’t do, and how the AAPL is trying to organize the efforts of private lending.
AAPL was formed to help raise the standards in the industry and develop a brand that could be used by private lenders to prove credibility and trust. Larry also discusses the needs of investors and the various tools now available to support investors and lenders.
Larry shares his passion for fair dealing and excellence in lending as the Executive Director of the American Association of Private Lenders. He brings to this position the experiences gained through a 30 year career in banking.
During that span, he served in many leadership and lending capacities, including serving as Executive Vice President for a regional bank with a $220 million portfolio of commercial, consumer, construction, and mortgage loans. Additionally he served as Community President for Gold Bank in Saint Joseph, Missouri and transitioned to Regional EVP with Marshall and Ilsely Bank in Kansas City. His well rounded background includes experience in Loan Review and serving for two years as the Corporate Training Director for a $15B regional bank holding company.
Throughout his career, Larry has had a passion for community service, serving in various leadership capacities with organizations such as United Way, the Allied Arts Council, St. Joseph Preservation, Inc. and many others. His interests lie in all outdoor sporting activities, basketball, and cooking.