Creating Wealth Real Estate Investing with Jason Hartman

Welcome to the Creating Wealth Show. This is Episode Number 258, and this is your host, Jason Hartman. Excited to be with you today, as always. Thanks for joining me. Today we’re going to talk about the Secrets of Economic Indicators, with our guest, Bernie Baumohl and he’s written a book on that subject and it’s got a couple of printings, a couple of versions out and I think you’ll really get some stuff out of that, and come learn how to decode what you hear about, what you read about in the news media, and what it means to you as an investor and as an astute financial person.

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In this solo episode, Jason reviews articles which depict the current economic state of affairs from coast to coast. In San Francisco, one company is paying employees to move, developers are driving up the cost of homeownership in New York City and the most average city in the US is exactly where you would expect it to be. Jason also reminds us why we shouldn’t be alarmed by rising interest rates because, as he points out, you have to look at the big picture. Money is and will be flowing into the real estate market during the Trump Administration. Don’t let your money be lazy! Contact an investment counselor today.  

 

If you are a new investor or thinking about investing in income property, visit Jasonhartman.com and watch the video, How to Analyze a Real Estate Deal. It’s free educational material.

Key Takeaways:

[2:09] The measurements used to determine the Most Average City in America.

[7:44] A small tangent turns into a rant about the downsides of Tesla ownership.

[13:49] The Business Insider article about Zapier paying employees 10K to move outside of San Francisco.

[16:16] Developers are swarming in New York City neighborhoods article.

[18:47] Signs money continues to flow into the real estate.

[21:57] The ability to borrow is a great asset.

[28:21] Money will flow into real estate under a Trump Administration.

[29:41] Work with an investment counselor to help build your portfolio.

[33:07] What will cause the rise of the suburbs?

[37:42] Why you should go back and listen to previous Creating Wealth episodes.

Mentioned in This Episode:

Jason Hartman

Real Estate Tools

 

Articles:

Newser:

This is the Most Average City in America by Michael Harthorne

Business Insider:

The cost of living in San Francisco is so high, a tech company is paying workers to leave by Melia Robinson

‘We’re like cockroaches’: Developers are swarming over emerging neighborhoods by E.B. Solomont

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To kick things off, Jason shares a Wallethub article which lists cities with the highest and lowest credit scores. Memphis credit scores are some of the lowest in the US which is why it is a good place to invest in income properties. And, Jason’s guest today is the first banker in history to expose the monumental story of Swiss bank secrecy. When Bradley Birkenfeld became aware of the shady practices of Swiss accounts he went directly to the Department of Justice. What happened after led him to expose the secret connection between the US and Swiss Governments and how taxpayers in both countries foot the bill for the illegal activities of bankers.

Key Takeaways:

[2:05] Details about the upcoming Creating Wealth Seminar and Memphis Property Tour.

[6:20] A Survey by Wallethub lists these cities as having the highest and lowest credit scores.

 

Bradley Birkenfeld Guest Interview:

[11:54] A history lesson about the beginning of Swiss banking anonymity.

[14:56] The Department of Justice turned Bradley away.

[16:02] The banking system and the federal government are closely related.

[19:00] Secret numbered Swiss accounts allow for non-traceable illegal activities.

[23:22] Bradley was forced to go to the Senate because the DOJ is corrupt.

[26:55] Proof the American people were screwed by the Obama administration.

[28:39] The U. S. Government and the Swiss Government are in bed together.

[33:38] Wikileaks documents show Hillary Clinton was involved in UBS.

Mentioned in This Episode:

Jason Hartman

Lucifer’s Banker

 

Articles:

2017's U.S. Cities with the Highest and the Lowest Credit Scores.


Jason Hartman gives you a free one hour segment from his Creating Wealth Home Study Course as he discusses "The Ten Commandments of Successful Investing."

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Jason and Fernando unpack recent articles from the Washington Post and Wall Street Journal as they relate to the general economy and most importantly, real estate. The first real estate president, Donald Trump may be opening the door to increased money flow in the U.S. through cutting the federal workforce and removing restrictions on community banks. Jason points out the multiple dimensions of real estate and how income properties offer multiple strategies for staying ahead of the market.

Key Takeaways:

[2:00] Jason and Fernando discuss the Washington Post article “Trump Budget is Expected to Seek Historic Contraction of the Federal Workforce.”

[11:53] And, “Trump Pledges to Ease Restrictions on Community Banks.”

[17:26] The 3 Dimensions of Real Estate

[19:27] Charlotte, NC is a great example of a market that softened after investors invested in income properties.

[21:10] Fernando is faced with making decisions about his existing properties.

[23:01] When is it the right time to change Property Managers?

[32:24] Unpacking the Wall Street Journal article “Credit Reports to Exclude Certain Negative Information, Boosting FICO Scores.”

[35:11] Reasons for investors to be bullish right now.

[37:33] It pays to be cautious but most importantly, be smart.

[40:49] Memphis Property Tour is almost sold-out.

Mentioned in This Episode:

Jason Hartman

Venture Alliance Mastermind

Real Estate Tools

administrator@realestatetools.com


This episode includes a recording of a live Q&A session from a Creating Wealth Seminar. The Investment Counselor Panel shares real life examples of how investors benefit from the free education and their hands-on assistance. If you are interested in investing in the most historically proven asset class, income properties this podcast is a great place to start. It also includes the reasons why investors would want to attend a future Creating Wealth Seminar and the benefits of joining the high-level Venture Alliance Mastermind.

Key Takeaways:

[3:09] Venture Alliance wrap-up and details about the upcoming Chicago event.

[10:37] The Memphis Property Tour and Creating Wealth Seminar.

[11:16] Happy 13th Anniversary to the Creating Wealth Seminar!

 

Live Investment Counselor Panel Part 2 Q&A:

[16:19] The process of finding and vetting a Local Market Specialist.

[19:02] Striking the right balance between A, B and C properties in a portfolio.

[24:13] Amortization of property components.

[27:10] How many properties should I have in one bank account?

[35:59] What benefit do Investment Counselors provide to investors?

[44:20] Do Investment Counselors have different areas of expertise?

[49:28] How to best utilize an Investment Counselor?

Mentioned in This Episode:

Jason Hartman

Venture Alliance Mastermind

Voxer

Property Evaluator Software

Direct download: CW2080320Jason27s20Live20Investment20Counselor20Panel20Part202.mp3
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Jason Hartman talks with Chris Mayer who is managing editor of the Capital and Crisis and Mayer’s Special Situations newsletters. He also is a contributor to the Daily Reckoning.

Graduating magna cum laude with a degree in finance and an MBA from the University of Maryland, he began his business career as a corporate banker. Mayer left the banking industry after ten years and signed on with Agora Financial. His book, Invest Like a Dealmaker, Secrets of a Former Banking Insider, documents his ability to analyze macro issues and micro investment opportunities to produce an exceptional long-term track record of winning ideas. Mayer’s commentary has been featured by MarketWatch, Russia Today TV, the Atlanta Journal-Constitution, and the Huffington Post. http://dailyreckoning.com/author/chrismayer/

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This episode includes a brief history of Jason’s experiences in the real estate market from 2004 to the mortgage crisis of 2008. Jason correctly predicted the crisis and tells us what signs to look for in the future. Then, a live recording of a Creating Wealth Seminar with a panel of Investment Counselors answering real participant questions about mortgage sequencing, the importance of leverage, and common client challenges.

Key Takeaways:

[2:49] Details of the upcoming Creating Wealth Seminar and Memphis Property Tour.

[4:11] Jason predicted the collapse of the mortgage industry way back in 2004.

[11:16] Meeting other investors is one of the best things about attending a live event.  

 

Investment Counselor Panel Recorded Live:

[14:03] Meet the Panel: Investment Counselors Sara, Carrie, and Oliver.

[20:25] What areas of the process do clients find challenging?

[24:30] During the recession, how did investment counselors help investors?

[27:07]  A lesson in the importance of leverage.

[29:57] The strategy for mortgage sequencing.

Mentioned in This Episode:

Jason Hartman

Venture Alliance Mastermind

Property Tracker Software

The Greatest Management Principle in the World, by Michael LeBoeuf

Direct download: CW_801_Jasons_Live_Investment_Counselor_Panel.mp3
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Jason’s guest is the larger than life, Grant Cardone. Grant is a firm believer in ‘it’s not what you know, it’s who you know’. Grant explains the inspiration behind his book, The 10X Rule, his strategy behind getting the life you want and why becoming rich is the only safe haven in today’s world. Grant recommends making your goals ten times bigger than they currently are and being willing to do whatever it takes to get what you want.

 

Grant is a New York Times bestselling author, Executive Producer of the reality show, Turnaround King and Host of the Cardone Zone.

Key Takeaways:

[2:26] Venture Alliance Mastermind details.

[7:54] Jason and Naresh discuss the impact the self-driving car will have on real estate.

 

Grant Cardone Guest Interview:

[20:00] Grant’s new venture Act Like Success is based on committing first and figure the rest out later.

[25:22] The 10X Rule is based on a concept that the goals, targets and actions people are making are low based on their potential.

[27:37] How to stay excited and make your goals 10X.

[29:27] Breaking free of middle-class thinking.

[36:47] Find power in who you know not what you know.

[41:13] You have to do whatever it takes!

Mentioned in This Episode:

Jason Hartman

Venture Alliance Mastermind

Grant Cardone

Tired of Missing Sales

Cardone University

@grantcardone on Twitter

Direct download: CW_800_rant_Cardone_-_The_10X_Rule.mp3
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The world of investing involves many considerations. Chief among these are the two “Demons” of investing that must both be defeated in order to realize success. The first demon is risk, and the second is inflation. Risk comes from the fact that future returns are uncertain, and it is not possible to foresee all future events. Investments that seem ‘safe’ may turn out to have hidden dangers that we did not notice. Risk can never be eliminated, it can only be managed. The best way to do this is by properly diversifying your investments so that they are not all subject to the same market shocks. The second demon of investing is inflation. Inflation is especially difficult because it erodes the value of your dollars. Defeating the demon of inflation requires investment in multi-dimensional assets that are optimized to defeat inflation. Income properties meet this criteria well because the property itself holds real value by nature of the replacement cost of the structure, the loan allows you to have a fixed cost of capital for three decades, and the cash flow is pushed up by inflation while you cost structure remains flat because of the fixed-rate financing.

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