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.
Wed, 23 January 2019
CW 1115: Jack Bogle's Impact & Boom Market Extended, Optimistic Predictions & Zero Hour with Harry Dent
Jason Hartman starts today's show with a tribute to Jack Bogle, who truly changed the world of investing and was a figure that Jason could model his beliefs about fighting for the little man after. He also discusses some important lessons we can learn about questioning advice we hear to ensure it's best for our purposes, not just the benefit of the person making the pitch.
Then Jason talks with Harry Dent, author of Zero Hour, about Harry's optimism about our economy, the impact the high end real estate softening is going to have on all of the housing sector, why demographics are NOT looking good for China and other Asian countries, and more.
[4:54] Farewell to Jack Bogle, you need to read his books if you haven't yet
[7:59] Be wary when listening to people telling you about ways they can "help" you while investing and make sure you figure out if it's really worth doing
Harry Dent Interview:
[12:49] Why is Harry more optimistic about our future than usual?
[17:23] People in San Francisco hate big tech companies like Google because they're driving up costs beyond reason
[19:48] The high end housing market is already softening, but how far down will the slowdown trickle?
[25:20] China's demographics have them looking straight into a disaster
[29:59] The hottest coming sector for the next 10-15 years in the US
[32:50] There are 2 waves of Millennials and the 2nd hasn't entered the workforce yet
Mon, 21 January 2019
CW 1114: Client Case Study: 13 Properties & Counting with Curtis & Balanced Budget Amendment & Benefits of High Loan Balances
Jason Hartman starts off the show with Adam discussing the potential of a Balanced Budget Amendment, as well as what a mortgage relief program in Denver is telling us about protecting yourself in a crisis. They also discuss how inflation is creeping in to our life.
Then Jason has a client case study with Curtis discussing Curtis' real estate investing journey so far, accumulating 13 properties in the past 3 years. Curtis gives a story about how he dealt with a massive insurance claim and how real estate investing is helping in his long term plans.
[4:20] The dangers of a balanced budget
[8:54] The best insurance is a high loan balance
[11:59] Inconspicuous inflation
Curtis Hrischuk Client Case Study:
[17:32] How bagels got Curtis and his wife into real estate
[23:15] Curtis' experience has been incredibly positive so far
[26:25] Curtis' local insurance was a life saver for them when property damage occurred
[30:34] What are Curtis' plans with his cash flow?
[34:47] Curtis had to be "deprogrammed" in order to real estate invest
Fri, 18 January 2019
CW 1113 FBF: Liberty is the Path to Prosperity with Ron Paul's 212 President Campaign Senior Adviser, Doug Wead
Today's Flash Back Friday comes from Episode 315, originally published in May 2013.
Doug Wead has served along side some of the greats in modern American politics. Doug has been close with and written books about several "First Families." Doug's work has been praised by everyone from Ladybird Johnson (wife of LBJ) to former Congressman and Presidential Candidate Ron Paul, whom he served as a senior adviser in the 2012 Republican Presidential Primary.
Doug was an adviser for both Ronald Reagan and George H.W. Bush. Wead also worked with George W. Bush for years leading up to his Presidency. Wead has authored more than thirty books, which are known for their primary sources. He has interviewed six presidents and first ladies, nineteen of the presidents children and twelve presidential siblings.
During the 2008 Presidential Debates, then Congressman, Dr. Ron Paul impressed Doug Wead with his non-interventionist foreign policy platform and caused him to deviate from the "old right wing" which he had served and written about dutifully for decades. As a senior adviser to Dr. Paul during the 2012 campaign for President, he was regularly featured on CNN, MSNBC and Fox News where he defended Paul's foreign policy and monetary policy, among others.
Since the end of the 2012 election cycle, Doug Wead and Ronnie Paul Jr., eldest son of Dr. Paul, have teamed up to form The Liberty Networking Project. They are dedicated to providing those in the self-dubbed "Liberty Movement" with an opportunity to profit from the unprecedented level of net-based enthusiasm and connectedness generated during the 2008 and 2012 grassroots Presidential campaigns of Congressman Paul.
Wed, 16 January 2019
CW 1112: The Future is Asian with National University of Singapore's Parag Khanna, New American Foundation
Jason Hartman starts off the show discussing the changing economy and how economic prosperity isn't usually good for human character. Too many people start taking advantage of being able to make the easy sell and stop playing the long game, only focusing on the short game. He also explores the impact golf courses are having to property values as many are shut down across the country due to lack of interest.
Then Jason talks with Parag Khanna, author of The Future is Asian and founder of FutureMap, about what's really going on in regards to the trade war and its impact on Asia (which doesn't just mean China). The two discuss the role of technology in killing jobs around the world and Asia's impact on global consumption growth.
[2:36] Times of economic prosperity are not good for human character
[4:48] Golf courses are shutting down, which is causing massive property value drops and need to figure out what to do with the land
[7:53] Buildings are going up in China in around 90 days
Parag Khanna Interview:
[11:21] What is Connectography?
[16:13] The premise of The Future Is Asian
[19:23] Parag can tell you who's going to win a trade war with China
[21:17] Technology is killing jobs a lot faster than trade is
[25:48] Most of the consumption growth is coming from Asia
[29:38] International competition is getting bigger and bigger, making any missteps even costlier
[35:38] Companies are shifting entire operations overseas to take advantage of those markets, but that's not necessarily a bad thing for America
Mon, 14 January 2019
CW 1111: Bubble Machines, Griftopia, Vampire Squids & Long Con That Is Breaking America with Matt Taibbi
Jason Hartman talks with Matt Taibbi, contributing editor at Rolling Stone and author of books such as Griftopia and The Divide, about bubbles. The two explore how Fed policy has been leading to bubbles throughout the years, how Wall Street is designed to take advantage of the average citizen and what we can learn from the history of bubbles.
[6:15] Will we learn how little we actually need the government by the time this shutdown is over?
[7:40] The government doesn't need to be in all these industries
Matt Taibbi Interview:
[12:51] There's a pretty decent path from Fed policy to bubbles
[17:21] How the Great Recession came into being
[21:57] Institutions have learned how to create a bubble to profit from, but then also be prepared to make money when their own bubble bursts
[26:04] As long as trades are occuring Wall Street is making money
[27:54] How investment bankers are auctioning off America's infrastructure
[32:34] What is the investor's lesson from the bubble machine?
Fri, 11 January 2019
CW 1110 FBF: Improving Memory & Concentration With David Farrow Creator Of The ‘Millionaire Memory’ Program
Today's Flash Back Friday comes from Episode 190, originally published in November 2010.
Jason Hartman talks with Guinness World Record Holder, David Farrow on this “every tenth show” where we’ll explore how to improve memory and concentration. If you’re like most people, you’re constantly forgetting things. People’s names. Where you put the keys. Even things you read just moments before. Your mind is like a cluttered attic with information tossed everywhere and little hope of finding anything quickly.
You can create a mental filing system that not only categorizes and organizes information, but also lets you retrieve it instantly, whenever you need it! Who am I? I’m the world’s foremost expert on memory and a two-time Guinness World Record holder. His program is designed to teach people like you to do what he can do – remember the names of people I met only once, always know where I put important objects like my keys, recite whole passages from books, word for word, and so much more. Using his techniques, hundreds of people like you are learning new languages, memorizing important scriptures and quotes, and even improving their vocabularies. With techniques that are easy and effective, you can double your reading speed and more.
Never lose your car keys or other valuables again
Using my breakthrough visualization techniques, I’ve trained thousands of corporate executives to excel in business, helped military officers and government agents remember critical pieces of information and even taught Academy Award-winning actors how to avoid blowing their lines!
Dave Farrow is the world’s foremost memory expert and a two time Guinness World Record Holder. He invented the MILLIONAIRE MEMORY program to teach people like you to do what he can do: remember names and important numbers, learn new languages, memorize scriptures, quotes and speeches, and more. Dave points to himself as proof that incredible mental improvements are possible.
As a child, Dave was diagnosed with two learning disabilities: ADHD and dyslexia. He struggled in school and had trouble keeping up in class. Out of frustration, he began an intense search for a way to overcome these challenges and, as a result, discovered the breakthrough techniques that helped him become the Guinness World Record holder for memorization. To earn that title, Dave memorized the order of 59 decks of cards. That’s 3,068 cards! Dave admits, “Your memory might never be quite that good, but I personally guarantee you’ll see dramatic memory improvements using my simple techniques.”
Thu, 10 January 2019
CW 1109: Modern Monetary Theory, Listener Questions & Finding a Quality Sponsor for Opportunity Zone Investments
Jason Hartman and Adam start the episode discussing Modern Monetary Theory and if it's applicable to our economy today. They also discuss Jeff Bezos' impending divorce and answer from Souji about transferring conventional loans into a trust.
Then Jason finishes his talk with Mike Zlotnik about investing in "Opportunity Zones". The two implore the listener to vet your sponsor before investing, not invest just for tax purposes and aligning your interest.
[5:23] Adam's been learning about Modern Monetary Theory lately, so what is MMT?
[9:05] MMT's explanation for why more money doesn't cause inflation
[12:25] The impact of the Jeff Bezos divorce
[17:49] Listener question about conventional loans and trusts
Mike Zlotnik Interview:
[22:50] Don't make the deal just for tax benefits. The deal needs to make sense BEFORE the tax benefit
[27:20] Your fund manager needs to have some skin in the game
[32:13] It's important to understand what a quality sponsor is
[34:16] The 2 major layers to pooled money investments
[36:49] Alignment of interest
Wed, 9 January 2019
Jason Hartman opens the episode with Adam talking about the upcoming Meet the Masters event. The event is coming up in March and the two reflect on last years and lessons learned. Adam discusses what he learned about property management that he's implemented in the last year.
Then Jason talks with Venture Alliance member Mike Zlotnik about the new trend in real estate investing, which is "Opportunity Zones". The two discuss what they are, when they can be a good idea, how the funds work and some potential tax implications.
[2:16] Opportunity zones are the new hot topic, so make sure you watch out when investing in them
[6:49] Lessons from Adam's first Meet the Masters
[10:11] Some things Adam got in regards to his relationship with his property manager from the discussions at last years Meet the Masters
[13:27] You have to push back at things in life and hold people accountable
[16:46] Listener question from Christina about her land purchase
Mike Zlotnik Interview:
[24:37] Mike's thoughts on deals in opportunity zones
[27:44] How funds work when investing in Opportunity Zones
[31:55] How are fund managers being successful getting people to invest
[35:29] Some potential tax implications
Mon, 7 January 2019
Jason Hartman talks with in house economist Thomas about a lot of things that happened to the housing market and the economy in general during 2018. They also look at some trends that will continue into 2019 and some new trends that could be rising in the new year.
To round out the show, Adam has this month's Mortgage Update, discussing the Fed's recent decision to raise rates, what rates investors can get for their loans today, and what the Fed's strategy might be moving forward.
[3:14] Has the rise of Airbnb impacted the high end rental market?
[6:07] Thomas' assessment of 2018
[10:16] $5 trillion of wealth has evaporated but Thomas doesn't think it's enough to trigger a recession
[13:44] The 3 presidents who presided over the most rate hikes
[15:40] One sentence to remember about 2018.
[18:04] What should we expect from the Fed in 2019?
[22:50] The credit spread between junk bonds and investment grade bonds are still in a healthy area
[24:45] January Mortgage Update with Adam
[29:30] Activity in MBS suggests mortgage rates may improve
[32:15] The Fed has rapidly raised rates so that they can taper rates if they slow the economy down too much
Fri, 4 January 2019
CW 1106 FBF: Reducing Tenant Turnover Costs, Client Case Study Gary Pinkerton, Investor Education, Immersion & Mastermind Power
Today's Flash Back Friday comes from Episode 836, originally published in May 2017.
Jason welcomes fellow investor and client Gary Pinkerton back to the show. Gary describes his experiences with tenant turnover, how he reduces costs by using durable replacement materials and some preventative measures he uses to ensure tenants are satisfied in his properties. Gary and Jason also discuss the benefits of two-year leases with built-in rent increases and how immersing yourself in the investor culture (by attending Venture Alliance and JHU’s) can make you the best investor you can be.
[05:08] Free market economics makes America is the land of abundance.
[09:30] How to reduce "tenant turn" without spending a lot of money with Gary Pinkerton.
[15:32] Two-year leases with built in rent increases.
[17:27] Management companies commonly keep late fees much like a payday loan business.
[23:09] How to minimize the cost of tenant turnover and make your property durable.
[30:11] A service like Home Advisor is an inexpensive way to self-manage.
[37:45] Gary will attend the Venture Alliance in Mastermind in Chicago and JHU and Property tour in Oklahoma.
Mentioned in This Episode:
Wed, 2 January 2019
CW 1105: Inflation, Housing Downturn, Affordable Homes & Reduce Property Taxes with Tax Appeals with Keith McIntosh
Jason Hartman starts today's show talking about the all important need for everyone to adjust for inflation. You can't just take old numbers and use them in today's world, you won't find the right lesson from them. Later he inspects a recent CNBC story about the New York housing market (and high end real estate in general).
Then, Jason talks with Keith McIntosh, President of McIntosh & Associates, LLC, about protesting your property taxes for your rental properties across the country. Keith explains the different ways you can protest your taxes, why the government big data doesn't get it right all the time, and more.
[3:32] Always be adjusting for inflation
[9:49] CNBC story on the New York city real estate pullback and whether it's a general or specific pullback.
[13:13] Rent control stagnates the market, just like articially low interest rates stagnate people's movement
[18:01] The building of new affordable homes just isn't happening
Keith McIntosh Interview:
[23:34] The property tax process & the 3 typical opportunities to dispute
[30:00] How does the process with Keith's company work?
[32:24] Why is Keith's "big data" different/better than the tax assessors?
[37:07] Is there a non-automated product available?
[39:24] How much people are usually able to save when protesting their taxes using Keith's data
[41:36] Protesting your taxes gives you a cumulative effect over the years
Mon, 31 December 2018
Jason Hartman takes the final episode of 2018 to discuss the current market softening and what's happening in the high end housing sector. He also explains why sometimes things like a government shutdown can provide opportunities for businesses.
But the second half of the show is a challenge for you as you're setting your New Years Resolutions. Jason challenges you to sometimes do things that make your life harder, to set goals (like most of America doesn't), to write the goals down and share them with those close to you. This will help you achieve your goals and get you closer to financial independence.
[4:03] Either the high end or the low end housing market starts faltering first during each cycle, and this time it is definitely the high end
[6:40] Everything tries to get bigger, so when the government is in session there are always new laws being put in place. So maybe the shutdown isn't the worst thing to happen
[11:03] The Peter Principle: we all reach our level of incompetence
[16:45] How Jason's mom's time as a social worker formed her political views
[19:52] Do things to make your life harder, intentionally, to challenge yourself...OCCASSIONALLY
[26:01] 80% of Americans have no goals at all
[29:06] You need to involve others in your goals
Fri, 28 December 2018
Today's Flash Back Friday comes from Episode 831, originally published in May 2017.
Jason records this episode from Europe where he is thoroughly appreciating Capitalism. He reminds us, to get rich, we must take consistent, prudent risks. Understanding proformas and having the ability to analyze real estate deals will pay off in long-term cash flow. And, using leverage allows you to do more with less. During the Four Pillars of ROI clip, we learn about the sometimes underappreciated tax benefits of income property investments and hear a new investor recommend investing with Jason’s company.
[03:03] The hidden pillar of ROI is inflation-induced debt destruction.
[04:34] Jason doesn't understand why millennials beg for Socialism/Communism.
[11:26] The Venture Alliance Mastermind in Chicago is coming up in June.
[13:52] The college experience is much like the European experience.
[17:02] The way to get rich is taking prudent risks.
[24:18] Look forward to the future, appreciate the past but live in the future.
The Four Pillars of ROI Live Clip:
[28:37] How to Analyze a Real Estate Investment - free video.
[31:33] Appreciation amplified with leverage.
[34:42] Victor shares his thoughts about pulling the trigger and building his income property portfolio.
[42:17] Recognized tax benefits of income property investing.
Mentioned in This Episode:
Wed, 26 December 2018
CW 1102 - Controlling Money Supply, Changing Demand for Debt & Using Smart Home Technology for Self-Management
Jason Hartman takes today's post-Christmas episode to go over some of the news from one of the most news-filled holiday seasons he can remember. There's a clash going on right now between the government (mostly Trump) and the Fed, but is it really such a good idea to let a non-governmental organization have so much control over our money? Jason also looks at how the changing demand for debt is impacting real estate investors, as well as how getting rid of your outdated technology (like keys) can improve your self-management.
Also, buy your tickets today for the upcoming Meet the Masters event in Southern California!
[3:14] This is the most economically newsworthy filled Christmas Jason can remember
[7:06] You may not think it's a good idea to have the government interferring with the Fed, but do you really want our currency run by an independent, unaudited thing like the Fed?
[12:27] What does the change in demand for debt mean to us as real estate investors?
[16:55] Has there been collusion in EU bonds?
[22:37] Why you should be using smart home technology
Mon, 24 December 2018
Jason Hartman talks with investment counselor Doug about the holiday season and what Warren Buffett can teach us with his investing strategy. A good deal is a relative term, and you have to look at the deal both today and in the future in order to see if it's truly a good one. The beauty with real estate is that, unlike investing in companies, is that it's a simple asset class that doesn't involve constant market corrections and adjustments.
The two also discuss the idea of a portfolio analysis and makeover, as well as how a market downturn might impact the new influx of institutional investors.
[8:04] Most good deals are in the rear view mirror
[11:37] A clip on Warren Buffett's investing strategy
[13:46] Don't sit around waiting for the deal to come to you. Find a quality product with demand (at a price tha tmakes sense) and buy it
[18:51] Unless companies, there's no need to re-invent your house every few years. It's a simple asset class.
[20:18] Why you want to understand things like interest rates and money supply
[23:27] Why you need to do a portfolio makeover
[27:17] The next market downturn will show us how institutional investors will react
Fri, 21 December 2018
Today's Flash Back Friday comes from Episode 690, originally published in June 2016.
Jennifer Kahnweiler, Ph. D. is considered to be the Champion of Introverts. She is a Certified Public Speaker and a best-selling author. She has written three great books, The Introverted Leader: Building on Your Quiet Strength, Quiet Influence: The Introvert’s Guide to Making a Difference and her latest The Genius of Opposites: How Introverts and Extroverts Achieve Extraordinary Results Together. During this interview, she alludes to the true differences between introverts and extroverts, what make introverts so special and how introverts can enhance your organization.
[2:05] A look at the Driverless Cars to Fuel Suburban Sprawl article.
[8:04] A video resource to help you analyze an investment property and understanding a performa using cap rates as a metric.
[12:46] Which is a better investment one with Tenant Improvements or a Full Service Gross lease?
[16:05] Kevin Kelly Audio short: The Emergence of Singularity.
Jennifer Kahnweiler Guest Interview:
[20:15] How is Shyness different from Introversion?
[22:55] How does someone know if they are an introvert or extrovert?
[25:03] There is a lot of prejudice which exist against introverts.
[29:26] All of us need to flex, Introverts and Extroverts alike.
[31:20] How can introverted leaders and managers increase their influence in their roles?
[36:07] Does a person’s gender come into play when someone is trying to carve out their path?
[38:44] All must respect each other’s talents to make a partnership truly thrive.
[41:05] Discussing the 5 themes of successful partnerships.
Mentioned in This Episode:
Wed, 19 December 2018
CW 1099 - Socialization of Mortgage Industry, Rising Interest Rates, Changes at HUD & Gen Z Rents with The Real Estate Guys
Jason Hartman starts today's episode talking about some important changes happening at HUD that Jason believes will make a positive impact, as well as differences in rent between Millennials and Generation Z.
Then Jason finishes his interview with The Real Estate Guys, as the two discuss the impact rising interest rates and energy prices will have on the blue collar workers you're renting to, as well as the socialization of the mortgage industry and why the government is poisoning industries.
[1:55] Ben Carson is doing some good things at HUD
[5:39] Some new changes to Jason's thinking if you live in a state with good homestead protection
[10:58] Generation Z is expected to outspend Millennials on rent
Real Estate Guys, Part 2
[17:10] What happens with interest rates and energy is going to be driving things in the short term, because it hits middle income Americans the hardest
[21:12] Technology can disrupt many different sectors, but the need to sleep under a roof isn't one of them
[23:18] The socialization of the mortgage industry
[26:37] When you introduce a non-profit (government) option into a for profit market you poison the well
[31:02] Think on a big level, but act locally
[31:30] Rock Island, IL Property Profile
Mon, 17 December 2018
CW 1098 - Impact of Institutional Investors, Impending Housing Shortage & Impact of New Tax Code with The Real Estate Guys
Today's show is all about the changing real estate investing scene. Be wary of anyone who's telling you that things like completely passive income exists and that you can make money today just like you could in the past. Things are changing quickly.
Jason Hartman talks with the Real Estate Guys, Roger Helms and Russell Gray, about just that, as the 3 discuss the emergence of the institutional investor in the single-family home market and what that means moving forward. They also look into what's causing the current housing shortage, as well as the impact short-term rentals are having on the high end market and how the new tax code is impacting housing.
We wrap up the episode with a property profile with Adam of a home available in Cleveland, OH.
[3:27] Get yourself invited to Indian weddings. Jason talks about his experience at client and booker Naresh's wedding #Narvani2018 and the great talk about real estate and the economy with other wedding guests.
[5:26] Be careful investing right now, times are changing
[7:34] The influx of institutional investors has brought some good new tools to all income property investors
Real Estate Guys Interview:
[10:01] The Real Estate Guys thoughts on institutional investors in the single family housing market
[13:32] A lot of the institutional money isn't being put into the greatest of deals
[16:00] Institutional investors take the cash flow, but are more focused on appreciation
[18:21] We have an impending housing shortage, which is causing the trend toward build-to-rent
[22:21] The tax code is written in a way to drive behavior
[27:33] Property Profile by Adam
Fri, 14 December 2018
Today's Flash Back Friday comes from Episode 824, originally published in May 2017.
This episode demonstrates the versatility of the most historically proven asset class income property. Jason breaks down its multiple dimensions and the various factors which can be used to prove that income property is the best investment you can make. During the client case study segment, Ani Wee tells her story of monetary and portfolio growth from her income property investments. She uses the Hartman Network to find opportunities, to gather information and to engage with like-minded people.
[03:30] Money matters!
[08:06] Why you should immerse yourself in the most historically proven asset class.
Client Case Study Ani Wee:
[21:29] During the market crash Ani was looking for options when she came upon the Creating Wealth Show.
[23:29] She started investing in real estate after reading Rich Dad Poor Dad but she didn't know what she was doing.
[25:36] Ani receives yellow postcards on the first property she bought from the Hartman network.
[30:41] Ani's duplex in Florida appreciated from $79K to over $150K and her RTV ratio increased.
[36:35] Comparison, income and replacement cost are the three basic approaches to appraisals.
[38:34] Don't be afraid to push back on property management issues.
[41:18] Ani will be doing a 1031 exchange on her properties in hybrid and cyclical markets.
[44:36] Don't wait to buy real estate and outsource your debt to your tenants.
Mentioned in This Episode:
Wed, 12 December 2018
CW 1096 - Difference Between Paper and Real Assets, Student Loan Debt, Looming Correction & Mortgage Update
Jason Hartman talks with Ryan Moran, founder of www.Capitalism.com, about assets. The two decipher the difference between paper and real assets, and why you should really just be using one to get more of the other, as well as looking at some indicators that are potentially pointing at a correction being on the horizon.
Ryan and Jason also go in to a discussion on whether student loan debt should be forgiven, why Ryan thinks it's a terrible idea, the importance of having economic indicators you can trust, and more.
[5:03] What you're really trying to do is take your paper assets and get real assets that create cash flow
[9:28] Is there a big, quick, correction in paper value coming?
[14:11] Is student loan debt forgiveness a good or bad idea?
[16:24] When you get rid of economic pain you get rid of economic indicators
[18:36] It's ALWAYS a good idea to buy good assets at good prices
[20:18] December Mortgage Update
[26:30] Property Profile: Davenport, IA
Mon, 10 December 2018
Jason Hartman takes today's episode talking with new investment counselor Doug about several economic signs that have been potentially helpful for real estate investors. The first area of focus is surburban real estate. Rent increases in the suburbs have been climbing faster than in urban areas and the RV ratios out there are nearly always better. Then the topics drift to more economic data coming out that includes an inverted yield curve, negative equity and a decline in quarterly sales for Toll Brothers.
Finally the Property Profile is from Kansas City, MO.
[4:23] Rents have been rising significantly in the suburbs
[9:09] RV ratios are almost universally better in the suburbs
[13:56] Have it clear in your head what "winning the race" means
[16:07] Buyers are spending more time looking for their home
[17:53] Toll Brothers announced their first decline in quarterly sales in over 4 years
[20:12] Negative equity can cause price spiraling, which thankfully we aren't seeing
[26:11] What is the inverted yield curve telling us?
[27:56] Kansas City Property Profile
Fri, 7 December 2018
Today's Flash Back Friday comes from Episode 815, originally published in April 2017.
It’s a wonderful time to be alive, especially if you are an income property investor. New technologies allow investors to self-manage properties all over the U.S. no matter where in the world they are located. Jason speaks with Merrick Lackner the Co-founder of Rently and Rently Keyless. Merrick describes the mechanics behind turning your rental properties into smart homes to give you more control over showings, energy consumption costs and the general well-being of your properties as well as the cost of installation and maintenance.
[03:07] Changes in property management and increased returns from investments.
[04:34] Do you know which billionaire lives in a trailer park?
Merrick Lackner Guest Interview:
[09:21] Merrick saw the need to improve on the showing of rental properties.
[12:57] Merrick describes the different options Rently offers.
[20:48] How the Rently process is coordinated for the renter and the landlord.
[25:30] The smart matching program includes a background check.
[26:58] Rently Keyless Entry gives real estate investors more control over their properties.
[30:10] How much does Rently Keyless cost to install and maintain?
[33:02] Rently offers different access for renters and owners to reduce liabilities and provide privacy.
Mentioned in This Episode:
Wed, 5 December 2018
Jason Hartman reports from the 2018 IMN conference with guest Robert Nickell, as the two discuss the latest in real estate investing. Specifically they look at the impact of institutional investors and "iBuyers" on the market today and how the massive influx of cash has created more stupid money than usual.
The rate of iBuyers continues to grow as more and more capital is raised, and all of that money is driving up home prices to the point where the "built to rent" phenomenon is making more and more sense.
[3:10] Fragmentation has kept the big institutional investors out of single family real estate investing, but the direction currently is leading them in to the market
[6:51] The impact of internet real estate companies
[12:10] Many of these iBuyer platforms and institutional investors are raising tons of money, but aren't actually making any
[17:02] The deal rarely looks great when you buy it, it looks great in the future
[17:30] The rate that iBuyers are purchasing is driving up prices
[20:20] Some investors get rid of their bad properties by simply selling them to iBuyers
[22:15] The build to rent phenomenon
[24:46] Property Profile
Mon, 3 December 2018
CW 1092 - Slowing Home Sales, Changing Your Investment Style to Fit the Times & My Life and 1,000 Houses with Mitch Stephen
Jason Hartman opens the show discussing the need for real estate investors to be flexible with their investment strategies. As conditions change, so too must your approach. What worked 2 years ago might not work today, so invest differently today.
Then Jason talks with Mitch Stephen, author of My Life and 1,000 Houses, on Mitch's start in real estate, the importance of not having 100% occupancy, how to determine if your market is overbuilt, doing due diligence, and more.
[3:02] As real estate investors we have to be flexible and adapt to our changing environment
[8:23] We need to keep our mind clean, our mindset clean, so avoid contaminating people
[10:59] Slowing sales doesn't necessarily mean a downturn in the market, it could simply be a lack of inventory
Mitch Stephen Interview:
[16:27] Is self-storage overbuilt? How Mitch tries to minimize his competition
[21:54] Self-storage facilities can go up really quick, is it better to buy an existing or build a new one?
[26:35] Jason's revelation about commercial vs self-storage real estate back in 2010
[30:09] Why you never want to be full in any sector of real estate investing & what you should do if facilities in the area are full
[33:38] Some of the due diligence Mitch does when looking for a facility to buy
Fri, 30 November 2018
CW 1091 FBF - Vernon Grant Client Case Study - Highest & Best Use of Equity, Maximizing ROI, Retirement Planning, NYC vs Tampa
Today's Flash Back Friday comes from Episode 809, originally published in March 2017.
During this case study, client Vernon Grant offers up a classic example of a situation you or your parents may be in right now. Vernon asks Jason for investment guidance on the two properties his parents own that are in vastly different markets. It’s all about the numbers, as Jason breaks down each property by its rent-to-value-ratio (RTV) and the existing debt structures of each. Jason reminds investors to consider depreciation offsets, refi-til-ya-die options and the beauty of renting.
[2:15] If your property doesn’t have good RTV ratios consider selling or refinancing.
[10:43] Vernon has been around property investing his entire life.
[12:00] Vernon needs Jason’s advice about how to handle his parent’s properties.
[14:23] It doesn’t matter where your property is, RTV ratios are almost always the same.
[17:51] The New York market is a cyclical market and may be on the verge of being overvalued.
[25:12] Jason offers the Refi-til-ya-die as an alternative to selling.
[28:35] Why do we trust the advice of strangers more than we trust the advice of our friends and family?
[32:33] It’s important to examine the existing debt structure of the properties.
[34:09] A 1031 exchange may help offset depreciation taxes.
[36:37] How does an investor know when it’s time to 1031 exchange or to refinance?
Mentioned in This Episode:
Wed, 28 November 2018
CW 1090 - New Investing Rules & THE FUN FORMULA, How Curiosity, Risk-Taking & Serendipity Can Revolutionize How You Work & Is There A Crypto Currency Future with Joel Comm
Jason Hartman starts this 10th episode discussing the changing rules for investors, and how to make sure you're playing by the new ones that will actually make you wealthy. Old rules no longer apply because the world has changed completely in the last few decades.
Then Jason talks with Joel Comm, author of the new book The Fun Formula and host of the Bad Crypto Podcast, about his new book The Fun Formula and how subtle changes in our thinking and routine can enable us to design the life we truly desire: one of significance and joy.
They also discuss why he's bullish on cryptocurrencies and blockchain, the changes blockchain will bring to our society, ICOs and more.
[3:50] Are humans smarter than monkeys?
[5:03] Worst case your real estate portfolio is a forced savings program
[10:09] The old rules worked because there were scarce goods and a scarce world. That doesn't exist any more
Joel Comm Interview:
[18:19] The origin of The Fun Formula
[22:30] You have to leave an opening in your life for the world to fill in some gaps
[26:20] Joel is bullish on both blockchain and cryptocurrencies
[27:35] Blockchain is going to be more disruptive than the smartphone
[31:30] Big money is coming in to cryptocurrencies, what are they doing right now?
[35:17] The current state of the ICO market
Mon, 26 November 2018
Jason Hartman takes today's episode to discuss some of the big issues in the real estate world. One of the biggest is the rising cost of labor that is causing rising construction costs that is causing a squeezing in the multi-family development. In regards to multi-family, however, we're also seeing an increase in apartment inventory, which is starting to reach scary levels.
Jason also goes over some important economic news and ends with Og Mandino's Mission Success.
[3:38] No service and no people is a common theme in service businesses these days
[7:58] Increased labor costs are squeezing the multi-family development pipeline
[12:31] The apartment inventory is starting to get scary, with supply getting excessive
[21:19] Uncertainty over Brexit has caused people to seek safe haven in bonds
[25:52] Og Mandino's Mission Success
Fri, 23 November 2018
Today's Flash Back Friday comes from Episode 774, originally published in January 2017.
The 19th annual Meet the Masters of Income Property is just three short weeks away. This revamped event will feature breakout sessions, top shelf speakers and in-depth discussions about what the rising inflation rates will mean for real estate investors. Jason’s guest is John Simpson. Mr. Simpson invested in the trailblazing Rent Reporters before it’s official launch because he believed in the business model. He now runs the company as CEO and is the corporate cheerleader to this fairly new, progressive company. Mr. Simpson shares the benefits of his service to both renters and landlords, how to participate in the process and testimonials about the benefit to those this service has affected positively.
[2:01] Rising interest rates is just one of the subjects we will be discussing at the Meet the Masters of Income Property Event.
[3:36] Erin sent in an article from the Kiplinger Letter about the future of the economy and inflation.
[9:49] What will Trump do to light the economy on fire?
[13:20] Garrett Sutton will be speaking at the 19th Meet the Masters Event.
John Simpson Guest Interview:
[16:54] Before Rent Reporters there was no mechanism for tenants to get credit for their on-time rent payments.
[18:35] The benefit to renters is clear, but what is the benefit for landlords?
[20:05] This service makes the renter more accountable.
[21:36] The top 3 factors that determine a credit score.
[24:54] Many renters have no credit score or they are invisible.
[27:16] A landlord will be able to see renter’s payments for the past two years.
[32:27] Landlords are incentivized monetarily to get new clients for Rent Reporters.
[38:22] The statistics that back the Rent Reporters business model.
Mentioned in This Episode:
Wed, 21 November 2018
Happy Thanksgiving (a little early)!!!
Jason Hartman starts today from his Aunt Joanie's house discussing a recent trend among her renters: lease breaking. Joanie has noticed that several of her tenants seem to be jumping in to the buy side after they had given up over the summer. Jason and Joanie discuss why this might be and the correlation between rents and home prices.
Then Jason talks with Diana Butler Bass, Ph.D. in religious studies and award-winning author of 10 books including her newest, Grateful: The Transformative Power of Giving Thanks. The two dive in to why being grateful is important, both for the community and the individual. Diana explains the 4 dispositions of gratitude and the health benefits that come from being grateful.
PLUS, don't forget to take advantage of Jason's massive Black Friday/Cyber Monday Sale!
[4:01] People are starting to break leases more often
[7:02] Fear of loss is more powerful than desire for gain
[9:26] Rents and prices are inversely correlated
[11:23] Why Aunt Joanie got into real estate
Diana Butler Bass Interview:
[16:15] Gratitude actually makes you healthier
[21:34] Gratitude functions out of our higher brain, whereas fear functions out of our primal brain. It also helps things in you physically like blood pressure
[24:39] The world has changed and we need to stop acting solely from our fear instincts
[25:37] The 4 dispositions of gratitude
[30:06] Play isn't just about competition, it's about appreciation, movement, and celebration. Ritual celebrations of thanksgiving are important parts of our culture
Mon, 19 November 2018
CW 1086 - Financing Multiple Properties & The Perfect Investment, Creating Enduring Wealth from the Historic Shift with Paul Moore
Jason Hartman starts today's show by discussing the enduring asset that is real estate. Buildings you see that have been there for decades, if not centuries, still make money for their owners. Then Jason answers some more mortgage FAQs, including financing multiple properties at once and what a Power of Attorney can do for you.
Then Jason talks with Paul Moore, author of The Perfect Investment: Create Enduring Wealth from the Historic Shift to Multifamily Housing, about what demographics are telling the two of them about the next decade for landlords, as well as home ownership rates and the current habits of both baby boomers and millennials.
[2:47] Income property is an enduring asset class
[6:37] More mortgage FAQs: can you finance multiple properties at the same time?
[10:37] Can a Power of Attorney sign for you for your investment properties?
Paul Moore Interview:
[14:11] How the demographics for the next decade looks for landlords
[16:09] Where Jason believes home ownership rate should be
[18:24] The faster growing demographic of renters is the baby boomers
[21:24] Millennials are renting in large numbers, partially thanks to the portability society
[25:20] What investing really is and other investment philosophies
Fri, 16 November 2018
CW 1085 FBF - Interest Rates, Low Housing Supply, LA Prices, Disrupting Real Estate with Autonomous Cars & Flying Cars with Pat Donohoe
Today's Flash Back Friday comes from Episode 825, originally published in May 2017.
Jason welcomes Pat Donohoe back to the show. Pat is the President and CEO of Paradigm Life and host of the Wealth Standard podcast. Together, Jason and Pat analyze a Wall Street Journal article which addresses lower mortgage rates and how the lower rates may affect the already ‘hot’ real estate market, how autonomous cars will create a resurgence of the suburbs and how the upper middle-class is rethinking retirement based on the trend of extended life spans.
[02:22] Wall Street Journal audio clip relating to the current housing market and interest rates.
[04:42] Zillow and isolated locations, like LA, with inflated housing values.
[11:35] Supply and demand in the rental property market.
[14:53] The Wealth Standard Radio and Paradigm Life contact information.
[15:36] The resurgence of suburbia will come with autonomous vehicles.
[19:28] A warning about spending money on high priced real estate.
[25:41] Reinventing retirement based on the cost of living longer.
[29:17] The 401k was never really meant as a retirement plan.
Mentioned in This Episode:
Wed, 14 November 2018
Jason Hartman starts today's episode by answering more of the mortgage FAQs that were started in episode 1083 that were spawned from the recent Profits in Paradise event. He looks at his idea of Refi Til Ya Die and what it takes to finance your first 10 properties. He also unveils the Ring Doorbell/Amazon Echo contest winner(s)!
Then Jason finishes his interview with client Drew Baker. This time the two tackle cryptocurrency, higher education, the investment landscape as it stands today, and the appreciation vs cash flow dilemma.
[4:22] You need to either create your own mastermind group or join one if you are looking to improve your lot in life
[10:09] Can you do a cash out refinance of your investment properties?
[13:18] If your credit score is over 720 you need to borrow more money (assuming that you're borrowing for investment purposes that is)
[15:42] Can you finance a primary residence regardless of how many investment properties you own?
[17:55] The Ring Doorbell/Amazon Echo contest winners
Drew Baker, Part 2:
[21:37] A 1 world cryptocurrency would be terrifying and allow governments to inflate as much as they wanted
[26:25] The college tuition bubble
[29:24] What should investors be looking at today?
[35:02] People tend to look at appreciation over cash flow because it's "sexier"
Mon, 12 November 2018
Today's episode starts off with Jason Hartman, in the car, back from Hawaii. He tackles the average length an American stays on the job these days, how technology is changing our buying habits, and starts answering some mortgage FAQs he's been getting lately.
Then Jason talks with client Drew about a mistake he made in self-management that shifted his views on contracts, as well as exploring dividend stocks and the economic disaster that is Argentina currently.
[6:46] Digital camera shipments are down 80% thanks to smartphones
[8:20] Mortgage FAQ #1- Can you finance more than 10 properties?
[9:43] You only need a 620 to finance your first 6 properties, then a 720 for properties 7-10
Drew Baker Interview:
[13:18] A mistake Drew made that made him realize it's important not to deviate from the contract
[17:32] Love or hate Trump, he's been good for the economy
[21:50] Dividends may sound great, but they're not the most stable
[27:05] The currency of today is just getting in front of people
[31:30] Argentina has an economic disaster every 10 years
Fri, 9 November 2018
CW 1082 FBF - Jason & Naresh - Critical Thinking, the Financial Media Talking Heads, Tax Liens & Cuba
Today's Flash Back Friday comes from Episode 773, originally published in January 2017.
Welcome to Creating Wealth 2017! The most important takeaway from today’s conversation is to start investing in real estate income properties now. If you already have an existing portfolio beef it up. Time is short and the longer you own a property the more money you make. Preserve your financial future. On today’s show, Jason brings Naresh back after an 8-month absence to discuss the benefits of smoking, the problem with the financial media in the U.S. and the farce which is making money on tax liens and deeds.
Naresh also shares his findings from his recent trip to Cuba.
[1:35] If you haven’t started your real estate portfolio and secured your financial future the best day to do it is today.
[5:03] The benefits of smoking include being social.
[14:00] Thinking critically and holding opposing thoughts on the same subject shows a high level of intelligence.
[15:56] Drinking the kool-aid is easier than doing your homework when investing.
[17:34] The problem with the financial media is the people delivering the news are not business people.
[24:37] How to make money from investing in tax liens and deeds and why it’s not a good idea.
[35:11] Naresh shares his experiences from his recent visit to Cuba.
[42:28] One of the few things Obama did that Jason agrees with is opening up Cuba.
Mentioned in This Episode:
Fri, 9 November 2018
CW 1081 - Coming Stagflation, Pitfalls of Short-Term Rentals & The End of Ethics & Banking with Scott A Shay
Jason Hartman starts this episode with a look at former Fed Chairman Alan Greenspan's most recent article outlining his concerns with our current economic situation. Greenspan is concerned we're headed toward stagflation, so what would that do to the average real estate investor? One sector that could potentially get hit is short-term rentals, so Jason investigates one of his big concerns on that front.
Then Jason finishes his conversation with Scott A Shay, co-founder of Signature Bank and author of In Good Faith: Questioning Religion and Atheism, about the degradation of ethics and character, and how we can reverse the course our nation is still on that idolizes money and power.
[3:40] Alan Greenspan's new article highlights some of his concerns about our economy
[7:19] The graying of America
[9:34] Greenspan says Stagflation is coming, so what does that mean for real estate investors?
[14:17] What concerns Jason about short-term rentals
Scott Shay, Part 2
[20:45] There's a degradation of ethics and character today
[25:26] How do we fix our current idolatry of money and power?
[30:00] How Adam Smith and Chapter 19 of Leviticus are similar
Wed, 7 November 2018
CW 1080 - Dr. Gina Loudon - Mad Politics, Keeping Your Sanity in a World Gone Crazy & Why The Survival of Our Republic Depends on the Revival of Honor
Jason Hartman starts off today's 10th episode taking a look back at this weekend's Profits in Paradise event as well as the Venture Alliance Mastermind experience with his guest Pat Donohoe. The two discuss the importance of asset protection and the impact of high tax jurisdictions.
Then Jason speaks with Dr. Gina Loudon, co-host of America Talks Live on NewsmaxTV, certified hypnotherapist, founding writer at Breitbart and official Trump campaign surrogate, spokesperson to Donald Trump's 2016 Presidential campaign and member of the President's 2020 Media Advisory Board. The two discuss the political divide that's present in today's society and whether it's worse now than it's been in the past. They also discuss the 3 types of people in the world and how President Trump is one of the most misunderstood people on the planet.
[5:21] People will leave high tax jurisdictions eventually, it takes some planning
[8:12] The return on investment for going to events like Profits in Paradise are incredible
[11:54] Asset protection was one of the main themes over the weekend
Dr. Gina Loudon Interview:
[16:17] We frequently forget to look at the WHY all this division is going on
[19:18] Are we really divided more now or is it all just sensationalized?
[24:29] The USA is actually living in the most healthy, happy, prosperous and safest times in history
[29:13] The monologue media vs the dialogue media
[30:29] The 3 types of people in today's world
[34:30] Gina says President Trump is one of the kindest and loyal people she's ever met
Mon, 5 November 2018
Jason Hartman starts today's episode from the beaches of Hawaii, discussing booms and busts throughout history, the definition of an investment, while also recapping this past weekend's Profits in Paradise event. Then producer Adam has the November Mortgage Minutes with one of Jason's lenders, as the two discuss what impact the market pullback has had and where rates are going.
Then Jason talks with Scott A Shay, co-founder of Signature Bank and author of In Good Faith: Questioning Religion and Atheism, in Part 1, about the dangers of our society becoming more cash averse, the degradation of ethics and character, and Glass-Steagall.
[3:32] Take care of the money thing, get the money thing otu of the way in your life, because money will ALWAYS be an issue
[6:41] There have been booms and busts all throughout history; the best way to prepare is to follow Jason's 10 Commandments
[9:19] How to tell if something is an investment
Adam's Mortgage Minutes:
[14:41] The pullback in the market hasn't impacted the mortgage market like you'd expect
[18:51] The people who got foreclosured on in the great recession are now able to borrow again, but the great rates have vanished so they're not in position to borrow again
Scott A Shay Interview:
[22:54] Even after everything we went through in the Great Recession, the banking industry is more consolidated now than it's ever been
[25:45] 60% of bank mergers result in a destruction of bank value
[29:54] The history and purpose of Glass-Steagall
[32:40] Our society is becoming more and more cash averse; what does this mean for us moving forward?
Fri, 2 November 2018
CW 1078 FBF - The Value of Debt, How to Manage Both Sides of a Balance Sheet to Maximize Wealth with Thomas Anderson
Today's Flash Back Friday comes from Episode 798, originally published in March, 2017.
Thomas J. Anderson joins Jason to discuss the value of debt. Mr. Anderson is the Founder and CEO of Supernova Companies and author of The Value of Debt series of books. He has broken down life into four financial stages and gives his recommendations for the amount of debt a person should have at each stage to reach a balance between life span and money span. Mr. Anderson says too many people take on oppressive debt too early in life and the right amount of debt can be a powerful tool.
[1:55] Details of the upcoming Venture Alliance Mastermind in Las Vegas and the Memphis Property Tour.
Thomas J. Anderson Guest Interview:
[5:26] All debt is not created equal.
[6:53] Companies have optimal debt ratios because they value the liquidity, the flexibility and the tax benefits of their strategic debt.
[8:43] Thomas describes the 4 stages of life and the optimal debt recommended for each.
[18:04] People need inflation, appreciation and income on assets working for them over a 30-year period of time.
[20:29] Real estate investors should learn the game of staying power.
[22:13] During economic downturns, those with more debt benefit the most.
[26:33] Debt structured the right way eliminates the need for massive returns.
Mentioned in This Episode:
Wed, 31 October 2018
Jason Hartman takes today's intro to discuss an interesting development with India's Central Bank that has some pertinence to what's going on today betweeen President Trump and the US Federal Reserve, as well as examining why business owners and landlords are two of the most successful classes of citizens.
Then Jason talks with Chuck Hattemer, Co-Founder & CMO at Onerent, about how their technology is changing the property management game. Chuck and Jason discuss the big problems that face investors and renters, and how Chuck aims to solve those problems, including how they're attempting to eliminate vacancy losses.
[4:06] India's Central Bank chief may resign after disagreements with what the government was instructing him to do
[7:47] Wealth and income are now concentrated between business owners and landlords, which is a club becoming harder to join
Chuck Hattemer Interview:
[14:49] What is Onerent?
[19:03] The biggest problem Onerent sees is fragmentation
[24:47] Who is Onerent competing with?
[26:04] The next phase of real estate and what services are coming up in the space
[30:59] The industry is becoming more and more refined and efficient, which should excite investors
Mon, 29 October 2018
Today's episode features Jason Hartman looking at some economic data that's come out in regards to the housing market, and what that means for us as investors. You must be wary of misleading statistics and keep in mind that, even after you close, a real estate deal is never done. Listen in as Jason introduces you to the unconventional thinking when it comes to the demise of Sears for commercial real estate investors and more.
[3:40] A look at one potential rental income property
[9:02] Be mindful of misleading statistics
[11:14] There's a difference between appreciation and capital improvement that will skew the comparable sales in a neighborhood
[13:59] When you purchase a piece of income property, the deal is not final
[19:35] The interesting part of the demise of Sears in regards to landlords of shopping malls
[22:54] The Appraisal Principle
[26:57] Over 75% of Americans view renting as more affordable than owning a home
[32:11] Don't let the tail wag the dog when it comes to your investments
Fri, 26 October 2018
Today's Flash Back Friday comes from Episode 744, originally published in October, 2016.
A local market specialist in the Jackson, Mississippi area joins Jason to share details of what makes Jackson a great place to live and to invest. Those looking for blue collar or white collar work are likely to find it in Jackson as employers abound. The well built, low-cost properties have a high RV ratio and the regulatory climate is landlord friendly. Brick on slab construction and agreeable climate make rehabbing lest costly and do-able year round.
[1:36] There is plenty of work and money goes farther in Jackson, Mississippi
[4:10] Details of Jackson’s regulatory environment and landlord friendliness
[5:19] Who are the target tenants of Jackson and who employs them?
[7:43] Typical house prices, cost to rent and what is included in a rehab
[10:44] Classifying the properties based on cost to buy, building type and school district
[13:30] After inspections, properties are upgraded and rehabbed with durable materials
[15:46] A 6-month warranty on rent and upkeep is standard with this local market specialist
[16:31] Jackson Mississippi has exceptional RV ratios. There are plenty of low-priced homes which collect high rents.
Wed, 24 October 2018
Jason Hartman talks today about the expansion of credit in the past 50 years and how that's impacted our economy. There's also a look at Trump's war of words with the Fed, why you should stock up on low rate mortgage assets, and why a booming economy is a noisy economy.
[3:40] You should be stocking up on low, fixed rate mortgage assets
[6:56] The modern expansion of credit started somewhere in the 50s
[10:56] The battle between Trump and the Fed is an important one to watch, because the Fed may be tightening too fast
[15:30] Make it part of your 5 year plan to get some shelter from high taxes
[19:22] Rising mortgage rates are like rent control and keeps people in their homes
[20:27] Construction costs have climbed 31% in 6 years
[23:01] A booming economy is a noisy environment
[27:24] Some listener Q&A
Mon, 22 October 2018
Jason Hartman starts the episode with a reminder to follow the commandments, and to make sure that you don't go into investments just because of their tax benefits.
Then, Jason talks with Joe Melendez, Founder & CEO of Value Insured, which features a new product that can reimburse homeowners up to their full down payment if the market went down when they sold their house. The two discuss the lack of inventory in the entry level home market, the hazards of regulation on today's market, and how Value Insured is able to work to help home owners.
[4:7] A word of caution: do not choose an investment JUST because of the tax benefit
Joe Melendez Interview:
[9:22] The entry level home market has been completely shut out from new home construction
[12:47] How to encourage builders to builder entry level homes
[16:42] Where is all the manufactured housing that people have been expecting?
[19:35] Equity insurance for the homeowner
[26:09] The math behind the equity insurance
[30:55] $60/year for equity insurance seems to say that Joe is bullish on the housing market. Is that true?
[34:03] When will the equity insurance for investors be available?
Fri, 19 October 2018
Today's Flash Back Friday comes from Episode 729, originally published in September 2016.
Jason, Fernando and Oliver make up today’s expert panel. They are discussing self-management options for your income properties. The experts agree, a great property management company is worth their weight in gold but it is also important to be educated about your self-management options. The panel shares information about companies who use technology to save you time and money through automating tedious tasks, best practices to improve home interiors without spending a fortune and what types of tenants are the best types of tenants to have.
[3:40] Jason and Fernando discuss the flooring options available at an income property expo in Mesa, Arizona.
[9:19] Kwikset Kevo bluetooth locks make it easier for self-management of income properties.
[16:57] Jason recommends adding a little color to the interior walls of your income properties.
[20:33] Is self-management easier than having a property manager?
[23:27] The road to self-management and maintaining a good relationship with your tenants.
[28:00] The flat rate fee system makes self-managing properties easier.
[32:47] Property managers are reluctant to take legitimate fees out of a tenant’s security deposit.
[37:06] Ask your property managers to lower their costs if you are realizing the value.
[40:11] Using Cozy makes rent collection and viewing tenant profiles easy.
[44:35] Disintermediation is getting rid of the middle man.
[49:10] Rently allows tenants to do their own showings with only a credit card.
Mentioned in This Episode:
Wed, 17 October 2018
Jason Hartman talks with Venture Alliance member Mike Zlotnik about cap rates in today's interest rate environment. Mike explains what happens to cap rates (and commercial real estate investing as a whole) when interest rates start rising. After years of artificially low interest rates, we're starting to see rates finally rise, so strap in and learn how to navigate the waters and get some real life numbers of the true impact.
[4:54] Real estate is so tax favored that it can become a bit of a trap, where you have to pay some serious taxes if you want out of the game
[9:52] There are signs of a shift in the marketplace, but thanks to Commandment #5 it doesn't mean much to us
Mike Zlotnik Interview:
[13:18] We are definitely in the period of abnormally low interest rates, and the Fed is raising them at a pretty rapid pace
[16:29] We've been spoiled by artificially low interest rates
[19:17] The inverse relationship between cap rates and prices
[23:53] A real life example of the impact of higher interest rates
[27:53] We live in a world where the Federal Reserve and the Treasury don't have to make sense
[33:09] Can the US government afford high interest rates?
[37:24] Why are rates going higher?
[40:26] How to prepare for higher rates
Mon, 15 October 2018
CW 1070 - Pruning Your Portfolio & Character & Grit, The Power of Passion & Perseverance with Angela Duckworth
Jason Hartman starts today's episode with his friend Matt Andrews, as the two discuss why they enjoy real estate and how they discover new ways to produce profit in their real estate deals, as well as the need for you to prune your portfolio.
Then, for his 10th episode, Jason talks with Angela Duckworth, Founder & CEO of Character Lab, former advisor to the White House, World Bank, NBA & NFL teams, and author of the new book Grit: The Power of Passion and Perseverance. The two delve into what character and grit are and the steps you can take to improve yours.
[3:21] The practice of "pruning"
[7:06] As you progress along your real estate journey you'll continue to find ways to profit on your deals.
Angela Duckworth Interview:
[9:57] Are we in a crisis of character moment in history?
[13:37] Is character an absolute or constantly in flux?
[18:57] One reason why the wicked don't prosper
[21:31] What is grit and how do you develop it?
[24:53] If you want to be different, be consistent
[28:54] The steps to becoming gritty
Fri, 12 October 2018
Today's Flash Back Friday comes from Episode 722, originally published in September 2016.
Today’s guest, Harry Dent is the author of multiple financial books designed to help you keep your wealth. Harry predicts an upcoming deflationary period followed by a huge debt bubble burst in the US. He wholeheartedly agrees with Jason and says the everyday house is where your money should be if you are a real estate investor. The uber rich and the Chinese will be the losers in this economic downturn and Wall Street will slide under 6000 and Shanghai will hit 1000. Harry says the market needs a cleansing because without it the markets will falsely re-inflate themselves for the sixth time. Hold on tight investors times they are a changin’.
Harry Dent Guest Interview:
[5:07] Something for nothing is an unattainable goal. You can’t just print free money!
[6:10] Why doesn’t the US have significant inflation with the exorbitant amount of money creation?
[7:48] In the US from 1983 to 2008, private debt peaked at 42 trillion. The debt had grown for 25 years at 2.5 times faster than the GDP!
[11:02] Banks create debt and then get free money. It will be painful, but necessary to deleverage the debt.
[16:15] The everyday house is the best investment option when the bubble bursts.
[19:01] The uber rich will get slaughtered during the next debt bubble crisis.
[20:51] The wealthy Chinese will be are laundering money and buying US real estate.
[22:57] 240 million rural migrants are trapped in Chinese cities with no hope for the future.
[27:22] Fracking will be the next debt default in the US.
[28:45] Deflation is a sign a financial bubble is bursting.
[31:30] We are living in a Keynesian economy. We are addicted to financial drugs and we can’t kick the habit.
[33:12] Interest rates are going up for bonds and mortgage rate will come down.
Mentioned in This Episode:
Wed, 10 October 2018
Jason Hartman takes today's episode to look at inflation, the trade war, and how the economy lags behind things like these. To help him with that dissection he brings in one of the new additions to his team, in house economist Thomas. Thomas helps Jason decipher his charts that show how the home sales change along with inflation and mortgage rates. All of these things add up to important tools you can use as you prepare your portfolio for the next recession we all know is going to show up sooner rather than later.
[3:18] It's important to think about the next recession BEFORE the next one
[9:37] Inflation numbers really started to be manipulated during the Stagflation years
[14:05] What you see when you compare the 30 year mortgage rate to existing home sales
[18:26] Inflation has been announced as mild recently, but how does it impact the economy and attitudes in general?
[20:01] What does the trade war mean for inflation?
[27:01] How rising interest rates effect different aspects of home buying
Mon, 8 October 2018
CW 1067 - 6 Reasons I'm Right About the Economy & Investing, Plus More Earnings for the Low Wage Workers
Jason Hartman starts off today's show talking about the disaster that is the American political system, as well as the truly remarkable thing that's happening in the US economy right now that's not getting enough attention. Then, Jason plays some of his segment from the latest Cash Flow Wealth Summit where he talks about the 6 ways the US government can solve their $220 trillion obligation and which one we can take the most advantage of as investors.
[5:12] Politics have become a complete fiasco
[6:33] What's going on in our economy is nothing short of a miracle, the bottom 10% of society have seen their wages grow 5%
[10:52] Automakers are starting to do more parts of their manufacturing in the USA
Cash Flow Presentation:
[15:41] The entitlement society isn't going to change, so align your interests
[17:25] We must understand the motivations of governments and central banks
[19:24] The 6 ways the government can deal with the looming entitlement bill
[27:04] The most likely solution the government will choose
[30:43] Inflation is the most powerful method of wealth redistribution from lenders to borrowers, old to young
Fri, 5 October 2018
Today's Flash Back Friday comes from Episode 717, originally published in August 2016.
The sharers, or those who participate in the sharing economy, are many. They are a huge untapped segment of opportunity for real estate investors. Jason summarizes Mike Willinger’s article, I Am a Sharer. Will the sharers create the next big real estate bubble Harry Dent cautions us about? And, taxes are the single largest expense in a person’s life. If you are a real estate income property investor or considering becoming one this episode is for you. Jason plays a comprehensive audio clip from Garrett Sutton’s book, Loopholes of Real Estate. Jason details and defines the important terms and identifies the caveats so you can be the most informed investor you can be.
[1:47] Jason relays Mike Willinger’s article about sharers.
[9:08] Will there be a resurgence of suburbs? The autonomous vehicle may make them popular once again.
[11:08] Harry Dent is predicting a real estate bubble. The questions is which markets will be affected?
[13:30] The US has a rigged corporate media system.
[15:54] Who is your favorite tax preparer? Are they Enrolled Agents?
[18:26] Beginning of the audio clip from Garrett Sutton’s Loopholes of Real Estate.
[24:13] To qualify for the real estate professional tax incentive you must spend more time your real estate business than in any other business.
[31:12] Property Tracker software makes it easy for real estate professionals to track their time.
[33:40] The Property Fixer app can assist the professional property flipper.
[35:38] Upcoming events include the Venture Alliance in Seattle and the Software and Buying event in Phoenix.
Mentioned in This Episode:
Wed, 3 October 2018
Jason Hartman talks with George Gilder, author of Wealth & Poverty, Knowledge & Power, The Israel Test, The Scandal of Money, Life After Google, as well as being an investor, writer, economist, and info-theorist, about his newest book, Life After Google. The two discuss how society is shifting when technology continues to change, as well as how blockchain is going to disrupt the entire thing anyway. George also addresses the entrepreneurial spirit in America and what to expect in the next 5-10 years
[2:48] What is the Wealth Simulator?
[6:24] Doug is excited to see how people's different risk appetites create different scenarios in the Wealth Simulator at Profits in Paradise
[9:38] It's important to realize the value of an idea
George Gilder Interview:
[14:38] What is Google Marxism?
[19:22] Since many of Google's services are free, their learning may be slower than other companies
[21:32] Google's ultimate goal
[22:26] What will the future look like in 5-10 years with blockchain technology continuing
[26:02] The cryptocosm offers is a new architecture for the internet
[29:25] The entrepreneurial spirit is alive and well in China, more so than in the US
[34:49] What Life After Google offers
Mon, 1 October 2018
CW 1064 - Cash Flowing in a Higher Rate World: The Return of Deferred Down Payments, ARMs & the Buy Down
Jason Hartman takes today's episode to discuss how investors can cash flow in a world that features increasing interest rates. With the Fed continually raising rates on their way to their goal, investors are seeing their rates slowly rise. Jason takes some time to discuss 3 strategies investors can use to help profit during these times and bring a new report from the self management journey of client Andrew Baker.
Finally, producer Adam talks with a lender from the network about where rates are today, where they're expected to go in the next few months, and where they're likely to end up once the Fed stops raising.
[4:20] What things to expect coming back to the market as interest rates rise
[7:59] Pricing a mortgage from the perspective of the mortgage company
[9:12] Calculate when your break even point for paying a buy down is to determine whether or not you should do it
[11:49] Some more from Andrew Baker's self management adventure
Mortgage Minutes for October 2018
[24:39] Do points make sense right now?
[27:22] Where can we expect interest rates to be by the time the Fed is doing raising rates?
Fri, 28 September 2018
CW 1063 FBF - Shane Sauer - Finding Stable Rental Property Neighborhoods, RentFax & Real Estate Investment Tools
Today's Flash Back Friday comes from Episode 698, originally published in July 2016.
Today’s guest Shane Sauer is a Co-Founder of RentFax, a company which pairs real estate industry knowledge with technology tools to help investors analyze their income property investment risk. The goal is to find good, stable rental neighborhoods for long-term buy and hold investments. Shane shares the sources of the information RentFax uses to calculate their property scores and what other due diligence is necessary when buying income property.
[2:00] Business Insider Labor Market Article: Millennials grow up, increasing the US birth rate.
[8:39] Property analyzers are not the holy grail of real estate. Technology is only as smart as the input it receives.
[12:18] Phoenix, Arizona is the site of the next Creating Wealth event in September.
Shane Sauer Guest Interview:
[15:03] Rentfax reports scores rental properties on anticipated Risc (rental income stability composite), rent and vacancy rates.
[19:03] Does this software help real estate investors make the best investment decisions?
[24:13] Rentfax partnered with geospatial data experts to filter 100 different data points on potential properties.
[30:29] ROI is not only Return on Investment but also Return on Involvement or Effort to Earn.
[33:23] Using the average tenant’s duration as a measurement for vacancy rates.
[39:07] Rentfax doesn’t distinguish between Section 8 neighborhoods and Non-Section 8 neighborhoods.
[42:23] Real estate investors should educate themselves and aggregate information before buying.
Mentioned in This Episode:
Wed, 26 September 2018
Jason Hartman begins this episode on a somber note, talking with Phil in Myrtle Beach about the aftermath of Hurricane Florence. Phil discusses what the status of his neighborhood is, the good deeds being done in the area, and how he expects his tight knit community to protect each other in the aftermath.
Then Jason moves to a happier subject, talking with client Diana Dine about her experience investing in real estate. Diana just recently bought her first home and is now up to 5 properties between Jackson and Memphis. She recently went to both cities to meet with the Local Market Specialists and discusses her future plans as she moves toward her financial independence.
[3:14] The power situation in Phil's neighborhood
[8:17] What can people do for the hurricane damaged communities right now?
[11:34] The aftermath of the hurricane is generally worse than the actual hurricane
Client Case Study with Diana
[13:59] Why did Diana get interested in real estate?
[18:00] Diana decided to buy her first property at the 2018 Meet the Masters
[19:20] Diana's experience meeting the Local Market Specialists
[23:49] How many properties Diana thinks she needs to reach financial independence
Tue, 25 September 2018
CW 1061 - $200,000 House Payments, Fractional Reserve Banking & The Business of Redemption with James Arthur Ray, Part 2
Today's bonus episode starts with a dive into what Jason has been saying for a while, and what the ultra-wealthy are taking advantage of. Leverage debt and keep a high loan balance. Listen in to find out why.
Then Jason concludes his 10th show interview with James Arthur Ray. The two finish their discussion on what wealth truly is, and also look at what we've all done in our life that we need redemption from, why the onus is always on the business owner, and more.
[3:46] The best insurance during natural disasters is a high loan balance, because you're the ones they will be helping out afterward.
[6:57] The ultra-wealthy are leveraging debt and getting phenomenal interest rates
[10:20] Bailouts during the Great Recession fueled populist anger because they helped companies, not the people
[12:50] What an aide told Jason was the reason they bailed out the institutions
James Ray Interview:
[17:56] We all need redemption because most of us have sold out our meaningful life for money
[22:25] You HAVE to understand that leaders make decisions.
Mon, 24 September 2018
CW 1060 - Economic Indicators Suggest A Few Years of Good Time & The Sweat Lodge Incident with James Arthur Ray, Part 1
Jason Hartman starts off the show with a look at some important economic indicators. Some of the data is showing strength for another 2 years or so, but there are some signs of cooling. Existing home sales and housing starts are also important to look at when thinking about the future. Also, Jason is glad to see that behemoth companies like Facebook and Google are finally (potentially) going to be reined in.
Then Jason has the first half of his interview with James Arthur Ray. The two spend most of this interview discussing what actually happened at the sweat lodge in Sedona when 3 people ended up dying. They also start their look into what wealth actually is.
[4:55] The economy is booming now, but there are signs of cooling
[7:34] Existing home sale numbers and the most long term indicator of the housing market
[12:25] Jason's terrible at predicting interest rates, but he has one place you can go where they know what to expect
[16:09] There is finally going to be some pressure put on Facebook and Google
James Ray Interview:
[19:05] What happened in the Sweat Lodge Incident in Sedona
[23:12] When something goes sideways in your business, there's only one person in the crosshairs, so you better get used to it
[27:51] James believes that the media wasn't willing to report some facts because they weren't sensational enough
[29:53] The greatest battle you'll ever fight is the battle to be unique
Fri, 21 September 2018
Today's Flash Back Friday comes from Episode 524, originally published in June 2015.
When Fernando first met Jason, he had a goal to purchase enough properties to successfully achieve 'financial independence day'. A couple of years later, he built an impressive portfolio and is now retired from his job at Apple Computers. Fernando is now one of Jason's investment counselors and today he hopes to answer some common questions his real estate investor clients have been asking him.
[2:00] Jason would love to have listeners on the show. Fill out a guest form at JasonHartman.com/Jason.
[4:45] In the membership section of JasonHartman.com, the audio players use Flash. Jason's team is fixing this.
[9:15] What's the process if you want to get started in real estate?
[16:35] Listen to the Creating Wealth podcast to get a free education on real estate.
[18:25] Please listen to episode 405 and learn how to read a property pro forma.
[21:45] You learn a lot just by coming to one of Jason's live events.
[29:45] Jason's business model is a simple one. They work on referrals and don't charge you a dime.
[32:00] You can own property without an LLC, but please read Mark Kohler's book, What Your CPA Isn't Telling You.
[37:35] You can have a good or bad tenant on any A, B, or C class property.
[39:25] Last thoughts? Don't over think the numbers too much. We are here to help you through the process, all you have to do is start.
Mentioned In This Episode:
What Your CPA Isn't Telling You by Mark Kohler
Wed, 19 September 2018
Jason Hartman is joined by his "brother" Dan as the two discuss the value networking. Dan (who Jason considers to be one of the best networkers he's ever met) gives some tips on how to break through to your networking targets, and how crucial the network becomes when recessions start affecting you.
Jason also goes over some new information he discussed in the previous episode, as he discovered how much money millennials are actually spending on rent and what that's led them to give up.
[1:38] Is Jason the most experienced person in his field? Try and beat his roughly 10,000 deals
[5:32] The value of networking
[11:00] Always be conscious of the other person
[14:58] Millennials are spending 45% of their income on rent
[20:39] What has to give when the percentage of income is higher than before?
[23:41] The financial crisis was 10 years ago last week, and terrible advice is still being given
[26:16] In downturns, the people who get the bailouts and the most help are people with the high loan balances
[28:58] Your network is going to be even more important when downturns happen
Mon, 17 September 2018
Jason Hartman starts off this backward show with guest Scott, who's an attorney who will be speaking at the upcoming Profits in Paradise about asset protection. The two explore the benefits of a Series LLC and some best practices for asset protection. Then Jason goes solo and discusses where wage growth is happening in the US (and where it's not), and how trade wars and interest rates are connected right now.
[3:25] What is a Series LLC and how can it benefit a real estate investor?
[6:43] The best asset protection you can get defeats lawsuits before they even start
[11:45] What kind of things will Scott be presenting in Hawaii?
[17:57] The first part of asset protection is financial privacy
[20:24] Real wage growth in Hispanic homes was more than 2x other households
[25:22] Looking at rent paid like your tenant was your employee
[28:18] The only linear market in the top wage increase list is Colombus, OH.
[29:40] Trade wars are keeping interest rates lower
Fri, 14 September 2018
Today's Flash Back Friday comes from Episode 705, originally published in July 2016.
Live events offer investors an opportunity to meet other investors who are successful using the long-term buy and hold strategy, to hear about real life examples of the acquisition process and to learn the tips and tricks which can make an investor’s life easier. This episode is full of useful information which is framed around real client questions including what were Jason’s biggest mistakes.
[11:00] Why did Jason choose real estate for his career of choice?
[13:19] Buy cash flow properties which make financial sense the day you buy them.
[19:35] Should you keep your property managers on a short leash by adding discretionary measures to your contract?
[26:56] What was the biggest mistake Jason made and how did it affect his life?
[34:02] Live events are a loss leader for us but they are beneficial for clients.
[36:18] Phoenix, Arizona is the site of the new event which includes a Q & A panel discussion and a best practices for acquisition example.
[41:09] What are the top 3 qualities a real estate investor should possess or develop to be successful with the buy and hold strategy?
Mentioned in This Episode:
Wed, 12 September 2018
Today's episode features Jason Hartman himself explaining the dangers of identity theft and how it's changed over the years. We all know that sometimes our credit card numbers get stolen, but it's gotten much more sophisticated than that these days. Jason also explores the maladies that impact all economies and what the Fed is saying about our economy today.
[4:24] Identity theft is much, much more than just financial theft
[9:18] It's easier to engage in identity theft and financial fraud than committing physical crimes
[16:37] What is money?
[20:22] The 3 basic maladies that happen in an economy throughout history
[24:10] The Fed tells us what to expect moving forward (hint: it's higher rates, slowly)
[27:05] When wage growth will start worrying the Fed & where Jason thinks you can look to see what inflation is really doing
[32:40] Will the Fed overdo it?
Mon, 10 September 2018
Jason Hartman takes aim at some important news in today's episode. The episode begins with a look at the first real wage increase in years, and how that may impact interest rates moving forward. Then Jason discusses his idea of "Economic Berlin Walls", jobless claims, communism vs capitalism, "Personal Keynesianism", and jobless claims.
[1:18] Wage increases are contributing to rising interest rates
[3:39] The trade wars impact on interest rates
[8:14] Looking back at the times in his life when he was financially strapped, Jason realized that consumer goods used to be WAY more expensive than today
[12:17] Housing price increases are slowing
[15:04] States are building "Economic Berlin Walls" to try and keep their residents for tax purposes
[17:45] Jobless claims have hit a 49 year low
[22:45] Karl Marx, indirectly responsible for the death of 150+ million people thanks to his communist ideas
[28:19] Globalism may have hurt the American worker more than anything else
[36:25] "Personal Keynesianism": Where you prime your own pump by having access to easy credit
Fri, 7 September 2018
Today's Flash Back Friday comes from Episode 812, originally published in April 2017.
To start the show, two clients who bought properties at the Creating Wealth Seminar and Memphis Property Tour tell their stories of why they do business with Jason’s company. And, later a recording from the Venture Alliance Mastermind in Las Vegas with Jeff. Jeff details how he creates balance in his life and has a successful career.
[1:27] Adam bought his 9th property during the Memphis Property Tour.
[4:32] A client who likes doing business with Jason’s organization because they provide a one-stop shop.
Las Vegas Venture Alliance Recording
[10:24] Jeff breaks things down into quarterly and daily goals.
[13:04] How Jeff strategically forms his 4 key goals.
[18:22] Meditation is a key component of successful people’s lives.
[22:23] The importance of teaching and growing every day.
[26:13] Choosing to create a leader, not a doer.
Mentioned in This Episode:
Wed, 5 September 2018
Jason Hartman spends today discussing the future climate of home supply and mortgage rates as we move into a world of higher rates and greater inflation. Jason sees a future that involves more Adjustable Rate Mortgages (ARMs), people unwilling to sell because they aren't willing to give up their low interest rate, and how the housing market could become even more stagnant.
Then Adam talks with one of the lenders from the network to discuss where rates are today, if the Fed raising rates will impact investors, what things might impact rates in the next few months, and more.
[2:56] Labor unions don't have the same cause/need today as they did when they were created and were desperately needed. Today we see technical tyrrany
[4:58] The popularity of Adjustable Rate Mortgages is set to increase
[8:25] An interest side effect to the way housing inventory and rate play out together
[12:10] Investors with mortgage assets are about to be seriously aided by Inflation Induced Debt Destruction
[14:58] Long low rate mortgages leads to a stagnant market with less price discovery because people don't want to give up their rates
Adam's Mortgage Minutes:
[19:35] Rates right now are in the high 5s
[24:04] The rise of quantitative tightening
[28:24] Any news items expected that could impact rates in the next 1-2 months?
Mon, 3 September 2018
Jason Hartman has a check in for this client case study with Drew. Drew recently took charge of 6 homes in the Indianapolis market to self-manage, and has a nice story of increased profit to accompany it. After adjusting rents to meet market prices and getting rid of management fees and the like, Drew has been able to increase his monthly cash flow by around $1,300.
Drew explains to Jason how he's formed relationships with his tenants that have been incredibly helpful to his bottom line, the software he's using for management, and how much time it's actually taking him per month to manage his properties.
[3:12] Where Drew has started self managing and why
[7:15] Drew put money into his property but came out ahead financially
[12:47] Always remember that your tenants are your customers
[18:07] Drew has raised his income by over $1,300 a month since he started
[23:37] How much is Buildium and why did Drew choose it?
[26:13] How much time per property is Drew spending a month? How long does a rent ready take?
[34:51] Just because you start self-managing doesn't mean you always have to. If you change your mind there's always another option
Fri, 31 August 2018
Today's Flash Back Friday comes from Episode 560, originally published in August 2015.
If you are in control of your life your kids do not talk back to you, you tell the waiter your food is subpar and you believe in every single word you say. If the aforementioned doesn’t ring true for you then you need to “grow a pair” and get your house in order. If you decide not to tell someone they are stealing your time and money at your business then by default you are condoning it. Larry believes you are providing people a service by telling them the truth. They need to experience the failure and the pain in order to allow them to learn from their mistakes. Keeping quiet doesn’t help anybody.
[4:56] Is this the beginning of the economic meltdown
Larry Winget Interview:
[8:07] Entitlement is the biggest enemy to our society
[8:59] People need stronger opinions and need to stand up for them
[9:44] Living on the edge is what gets one into history books
[10:50] The “I have a pair” test
[12:16] If you put up with something you condone it
[12:50] If you want to do the other party a service speak up about crappy service
[13:54] Peale’s “ruined by praise than saved by criticism” quote
[14:57] Ground your opinion and refuse to create drama
[16:14] I provoke people on purpose
[17:33] Which is better having rabid fans or rabid enemies
[19:35] I can count on my haters, they buy my products
[20:28] Numbness is a caused by a of lack of confidence in a speaker's’ faith in what they say
[21:51] Businesses can grow a pair by refusing to tolerate thieves or 20% of their employees
[23:27] We expect more out of our government than we expect out of ourselves
[25:21] Being in the middle is a safe place but it’s no fun
[27:12] Honest and open communication isn’t welcome in a world of political correctness
[28:44] I respect all opinions on my social media page
[30:38] It’s not about changing somebody else it’s always about yourself
[32:49] Kid’s need to experience failure and friends need the truth
Wed, 29 August 2018
CW 1049 - Is A Recession Coming, Trickle Up Default, Yield Curve, Short-Term Rentals Hawaii Conference & More
Jason Hartman and Doug take today's episode as a chance to look at some key happenings in our world today. By now you've heard Jason discuss how there's a softening in prices at the top of the housing market that is likely to slowly trickle down into other price ranges, but Doug says there's another metric to look at that's also telling us a recession is headed our way.
With stocks on a 10 year run, we know it can't stay this way forever. Jason and Doug look at whether the US investor's propensity to demand immediate gains by companies may be hurting us against our foreign competitors. They also look at the upcoming Profits in Paradise event and what's happening in the short-term rental market.
[2:07] Doug says there's a better sign of an upcoming recession aside from an inverted yield curve
[5:34] Trickle up poverty
[8:46] The rich have resources in the hard times (helping them get richer), the poor get hurt by them
[11:56] We're now on a 10 year run in the stock market, how much longer can we go?
[15:53] Asia's long term view for companies could be a problem for instant gratification that the US is plagued with
[19:14] Long economic expansions makes people forget that counterparty risk is real
[23:49] This housing slowdown is starting at the top and will work its way down
[26:36] What Doug is excited about for Profits in Paradise
[30:48] Where is all the additional demand for hotels and short-term rentals coming from?
[33:04] The best strategy for short-term providers
Mon, 27 August 2018
Today's show features Jason Hartman discussing some of the main stories in the news today. The first story is one of the reasons Jason created Commandment #3 (Thou Shalt Maintain Control), the next is a potential sign of a market slowdown from none other than the scandal plagued Wells Fargo, then the potential return of risky loans. Finally we wrap it up with a story on how California might make it even more expensive to live there.
[2:09] Forgetting Commandment #3 can often be an expensive lesson and the biggest Ponzi scheme in the world
[6:52] Always think of opportunity cost when you have money sitting around
[12:20] A potential sign of a market slowdown from Wells Fargo
[16:49] The housing market is slowing from the top down and hasn't hit the type of homes that Jason's network sells
[20:44] Are banks starting to push risky loans?
[26:07] California is considering changes to Prop 13 and home requirements, which Jason believes would be devastating for real estate holders
Fri, 24 August 2018
CW 1047 FBF - Financing FAQs You Need to Know, Why the World Looks to U.S. Real Estate to Create Their Wealth
Today's Flash Back Friday comes from Episode 571, originally published in September 2015.
Welcome to episode 571 of Creating Wealth Real Estate Investing. If you’re here it’s because you’re interested in creating or growing your wealth through real estate investing. And today’s episode is the perfect vehicle to help you do that.
One of our experts, Joe, joins us to give the down and dirty details of what it takes to get the best financing deal and the specifications you need to qualify for up to 20 properties. We also talk about whether or not you need an attorney to close a loan, the differences between technical refinancing and cash out refinancing as well as how many months’ of reserves you need.
This is expert advice free of charge! And it’s all here on today’s episode of Creating Wealth Real Estate Investing.
Quick answers in the lightning round to all of the most important financing questions. We dig in and ask prudent questions of Joe our financing guru. If you are looking to create your wealth through real estate investments this is the episode for you. Down and dirty details of what it takes to get the best financing deal and the specifications you need to qualify for up to 20 properties. Expert advice free of charge!
[1:23] Lender Lightning Round show
[1:58] The great Facebook debate
[4:29] Commandment #3 - Thou shalt maintain control
[9:28] Ric Edelman’s - 10 great reasons to keep a long term mortgage and never pay it off
[11:07] The supply chain of financial advisors
[15:40] It’s an amazing time to be alive
[16:18] The Chinese Government makes it easier to buy overseas assets
[18:40] Newport Rhode Island trip for Venture Alliance members and guests
[21:30] Inflation induced debt destruction
[22:15] Financing 10 properties per spouse through Fannie Mae
[22:53] Down payments vary - 5% down reduces your rate
[23:43] Financing through an LLC
[24:24] 1 loan, 1 property with vanilla residential financing
[25:45] Multiple inquiries about your credit score can lower it over time
[27:00] A LLC needs different insurance
[27:47] Is a power of attorney be sufficient to close the loan
[28:29] An attorney is not needed to close the loan
[29:57] A 2 year landlord history - Fannie Mae no, Freddie Mac yes
[30:56] The minimum credit score is 620 for the first 4 properties, 720 for 5-10
[31:50] Cash out refinancing on investment properties
[33:05] You can always finance your primary residence but different guidelines may apply
[34:21] Lenders need 6 months of reserves
[35:37] Offsetting the mortgage payment based on possible rental income
[37:42] Rental income loss
[38:38] Technical refinance or delayed financing
[40:22] 100% replacement cost needed in homeowners insurance
[44:37] Do your due diligence but beware of multiple credit checks
Wed, 22 August 2018
Today's episode features Jason Hartman covering a wide range of issues. The topic of conversation ranges from the coming singularity, what it is, when we might see it, etc, then branches into more on the discussion about Automated Valuation Models (AVMs) and whether they're are the precursor to reckless valuations like we saw before the Great Recession.
Jason also looks at the unfortunate situation Venezuela finds them in, with both rampant inflation and a natural disaster on top of it creating serious issues for the citizens of the nation.
And finally Jason listens to some of his favorite investigative journalists work as he discusses why investigative jouralism is important and how it is connected to his 3 guiding principles.
[3:07] The approaching singularity
[7:47] The database Jason was wondering about in relation to Automated Valuation Models exists with Fannie Mae/Freddie Mac
[10:05] Appraisers are a dying industry because the older ones are retiring and the hoops new appraisers have to jump through are hindering new hires
[11:45] Will AVMs cause reckless valuations to return?
[14:11] The IMF has announced that inflation in Venezuela this year alone has been 1,000,000%
[17:07] Asset price inflation is not a part of the inflation index in the USA, which is a big deal
[22:17] The 2 major problems of the humble single family home
[26:11] Investigative journalisms ties to Jason's principles of how you can't hear the dogs that don't bark, compared to what, and what gets rewarded get repeated
Mon, 20 August 2018
Jason Hartman welcomes his mom back to the show to discuss self managing properties and how to find the best deals when you have to make repairs. The two also talk about what kinds of addendum she's adding to leases recently, rising rents, job numbers and more.
[2:12] Small business confidence at 35 year high
[5:38] Job numbers are not showing an impact from the trade wars
[8:14] There's legitimate wage growth for the first time in 4 decades, which is great for all Americans (and our economy)
[10:33] Jason's mom has been able to raise 4 of her tenants rent by $100 a month
[13:03] Have tenants have changed over the years?
[16:10] How his mom gets good deals and aligns the tenants interest with her own
[20:12] "You get what you pay for" is not true for much (if anything) in life
[24:14] The kinds of clauses Jason's mom is putting in her leases to protect herself from unruly tenants
[29:24] How to build a great relationship with your tenants
Fri, 17 August 2018
Today's Flash Back Friday comes from Episode 568, originally published in September 2015.
The sharing economy will certainly change the game in the manufacturing sector but we do not yet know what affect it will have. Considering the normal adaptation lag time and the conversion nuances of each new innovation real estate investors must watch closely as the upcoming game changers come to fruition. Major economic indicators such as unemployment rates and the housing market will be closely monitored. Real estate investing may be entirely different than it is today.
[2:01] How real estate investors can design their portfolios in the current govt. environment
[3:24] 3 Cardinal rules of real estate - Location, location, location
[3:57] What is the labor content fallacy or the zero sum game
[5:11] Proving Supply side economics or trickle down economics
[6:25] Looking at economics by way of technology
[8:09] The self driving cars will hurt high value land owners
[9:06] An audio clip about self driving cars
[10:41] Automotive Industry experts expect an 8 year replacement cycle
[11:28] The average car is used only 4% of the time
[12:45] How will autonomous driving services affect the auto industry
[14:38] A game changer for real estate
[15:33] Naresh is skeptical about the dates
[18:00] The typical city or town is 40% parking
[19:11] Will people need to get in a car and go to work
[21:36] A safety app
[22:34] Will there be high unemployment or will technology fill in the gaps
[25:21] Digital goods basically exhibit a zero cost of production
[28:01] Real estate investors normally don’t consider what the future may hold
[29:25] Jason’s private mastermind group, Venture Alliance’s Newport Rhode Island trip
Wed, 15 August 2018
Today's episode is all Jason Hartman, as he goes through several of the big (real estate) news stories of the day. First there's a new development at the US Department of Housing & Urban Development that could increase housing availability and reduce home values (at least in the short term).
Then listen in as Jason tells the current story of his commercial property refinance and all the bumps (and fees) that come with the arduous process.
Finally we get to the Fed and interest rates. Jason takes a look at some of the Fed's moves from the past, how they have changed their original charter, and what's happening with interest rates because of that.
[3:17] There's a homelessness crisis in many cities around the country
[6:39] The Department of Housing and Urban Development is trying a new tact that may have a slight downward pressure on real estate values
[11:18] HUD is changing the way it determines how communities are enforcing the fair housing act, including relaxing zoning restrictions
[15:51] The adventure that is Jason's apartment re-finance
[21:03] Cyclical markets are cooling but linear markets are still booming
[26:02] The Fed was supposed to be control the quantity of money, but they morphed into being in charge of interest rates
[29:04] A basic reason to raise interest rates
Tue, 14 August 2018
CW 1042 - Rising Inflation, the Future of AVMs & Impact of Short-Term Rentals with Dr Andy Krause, Part 2
Jason Hartman starts today's show off back in the car with Carmen discussing some news he's seen recently. Inflation continues to creep up, apparently into the range that makes Central Banks happy, but Jason wants to know why we even have to see inflation, and explains what impact that will have. He also discusses the changes in America (and the history of marketing) that turned us into a consumer spending economy and the squeeze on American manufacturers currently happening.
Then Jason finishes his interview with Dr. Andy Krause, Principal Data Scientist at Greenfield Advisors and AVM Analytics, as the two wrap up their conversation about Automated Valuation Models (AVM). This time the two discuss the wide range of uses AVMs have, how they're going to be changing moving forward, and how short-term rentals are impacting housing markets across the country.
[5:07] Inflation is rising into the range the Central Bank deems "healthy"
[8:39] America is the land built on consumer spending
[12:36] American manufacturers are running low on parts
Dr. Andy Krause, Part 2
[15:35] What the AVMs do outside of simply valuing individual homes
[17:56] The future of AVMs
[21:15] The effects of the short-term rental market on the overall housing market
Mon, 13 August 2018
CW 1041 - Insider Sign for Housing Market, Labor Shortages & Science Behind Automated Valuation Models with Dr Andy Krause, Part 1
Jason Hartman starts today's episode with Venture Alliance Member Carmen as the two discuss the possibility of "vacation saturation", what the change in repayment of Jason's loans might mean for the housing industry, as well as labor shortages being experienced in the housing sector.
Then we have part 1 of Jason's interview with Dr Andy Krause, Principal Data Scientist at Greenfield Advisors and AVM Analytics, about the state of automated valuation models (AVMs), the potential future for AVMs, how they work, and what practicalities are slowing their development down.
[4:55] Reaching the point of vacation saturation
[10:05] An insiders sign on the direction of the market
[14:35] There is a massive labor shortage in construction and wages are going up
Dr. Andy Krause Interview:
[18:27] The biggest AVM people know about is Zillow
[19:28] The science (and accuracy) behind current AVMs
[22:22] 2 things that are stopping a database from happening that would significantly improve appraisals
[26:52] How does the AVM come up with a value?
Fri, 10 August 2018
CW 1040 FBF - Peter Sage, Money is No Obstacle When You Follow Your Passion with Extreme Entrepreneur
Today's Flash Back Friday comes from Episode 490, originally published in March 2015.
On today's Creating Wealth introduction, Jason invites Memphis and Little Rock market specialist, Jeremy on to the call. Jeremy talks about his interest in physics and what's going on in these two real estate markets right now. Jason invites Peter Sage from Extreme Entrepreneur to be today's Creating Wealth guest. He is a serial entrepreneur who started his first business at 17. Fernando also joins as guest co-host with Jason and the two ask Peter a series of insightful questions. On the show, Peter shares insight as to why he had a drive to become an entrepreneur, how to find your passion, your why, and much, much more on today's episode.
2:30 – Jeremy talks about the double split experiment in physics.
13:20 – What's currently going on in the Memphis and Little Rock market?
18:30 – Jason introduces Peter Sage and Fernando on to the show.
28:30 – Get in touch with what you're passionate about. Ask yourself questions about your life purpose.
39:40 – Why is it that some people struggle to change and others don't? Peter explains.
61:30 – How do we prevent ourselves from falling back into the same old routine?
68:20 – Peter talks about his purpose and his why.
73:20 – Peter talks about his space-based solar power energy project that he started.
78:30 – Pharmaceutical companies are not interested in curing diseases, they only want to maintain them. This current medicine model has to change.
Thu, 9 August 2018
CW 1039 - On Location From the Fed, KC Market Profile & Investing Integrity of the Centimillionaires with Richard Wilson, Part 2
Jason Hartman starts today's episode from the Money Museum, on location at the Kansas City Fed with KC LMS Dave. The two discuss the Kansas City and the Quad Cities rental markets, what you can get for your money in each and what to expect area wise.
Then Jason finishes his interview with family office expert Richard Wilson as the two discuss how much money it takes to make a family office, the importance of integrity in business and investing, and which niche domination can be a good strategy.
[2:58] It only takes 24 minutes to print 10 million new $100 bills
[7:00] What are the Quad Cities and what is the market like there?
[11:23] The types of repairs being done on Dave's properties to make them turnkey
[14:39] The cost of rehabs have gone way up over the past 7-10 years
[16:37] Dave's advice for what type of property is the best for an out of area investor
Richard Wilson Interview:
[21:34] The net worth you need to make a family office worthwhile
[25:20] Niche domination as a strategy
[29:20] If you don't have a focused approach to investments, and don't do things highly intentional, you'll never have synergy
[31:20] You need to have a dashboard and compass as to where you want to go, and it needs to be documented
[33:52] Everything in your life and business needs to have integrity
Wed, 8 August 2018
CW 1038 - Interest Rates, Housing Market Cool Down, & Investing Habits of the Ultra-Wealthy with Richard Wilson, Part 1
Jason Hartman takes some time today to discuss the yield curve and how it's telling us that a slow down might be on the horizon. He goes through the 3 different types of yield curves and the impact all 3 can have on the economy. Negative interest rates are also explained and Inflation Induced Debt Destruction rears its head again as well. Also, don't forget to subscribe to the PropertyCast and get all the new properties first year pro formas straight through your podcast platform!
Then, in part 1 of the interview, Jason Hartman talks with Richard Wilson, a family office expert, about what we can learn about investing by looking at what centimillionaires are doing.
[4:29] What's going on with the yield curve?
[9:38] Some back of the napkin calculations on negative interest rates
[14:28] The 3 different types of yield curves
[18:14] Signs of a turn showing in Orange County
[21:59] When the market cools the service providers will become a little more grateful and conscientous
Richard Wilson, Part 1
[25:15] Some of the business practices used by centimillionaires
[28:58] What a family office really is, and why it's a thing
Mon, 6 August 2018
Today's episode is about one short, simple, beautiful word: DEBT. Fresh off reading/listening to George Graeber's Debt: The First 5,000 Years, Jason delves into the subject matter head first, playing some clips from the book and discussing them in regards to today's world.
[4:34] The recent history of the rotation of the worst big bank in America, Wells Fargo is currently in the lead and had a computer glitch make hundreds lose their homes
[10:06] Why the housing market is actually different this time around
[15:10] Some samples from Debt: The First 5,000 Years
[25:45] It's incredible how throughout history, conquering nations make money by going in, making "improvements" and forcing the newly conquered people to pay for them, or by making them pay back the money the conquering nation spent defeating them
[30:05] The 60s and 70s featured a time where America was prosperous and people were getting cost of living raises and , followed by decades of stagnant wages until Donald Trump
Fri, 3 August 2018
Today's Flash Back Friday comes from Episode 598, originally published in November 2015.
Self-management tools often boast ease of use and shortcuts to save you time but don’t always deliver. Cozy and Landlordology are property management tools which offer end to end online self-management solutions. Both tenants and property managers benefit from the monthly automatic rent collection feature as well as the integrated application process. If you think doing a background check along with a credit report will help qualify renters qualifications then sign up for Cozy today.
[1:20] What time is it? It's an amazing time to be alive
[2:44] Income investment strength versus deflation
[5:00] Deferring your tax liability
[7:02] Inflation induced debt destruction
[9:03] Debt transfers wealth from the lenders to the borrowers in an inflationary environment
[10:33] What gets rewarded, gets repeated
[10:57] Deflation makes debt more burdensome
[13:40] Use the voicemail feature at Jasonhartman.com for your questions
[14:09] Sign up for the Meet the Masters event in Dubai
Lucas Hall Guest Interview:
[16:27] Lucas teaches managers how to manage their own properties
[18:23] You need to get your message out there - try postlets
[19:56] Hire a real estate photographer for great photos of your property
[24:44] Going over your general requirements before meeting at the property will save time
[26:04] A 2-year lease provides extra security for the tenant
[27:34] What is a landlord’s open house?
[29:28] Possible new tenants can submit an application as soon as they leave the property viewing
[31:20] Cozy is an end to end property management platform
[35:09] Rent collection can be difficult for property managers
[40:47] Property managers can garnish wages to collect back rent
[41:51] Automating your rent collection will make it easier for owner and tenant
[42:39] Resources are available on Landlordology.com
Thu, 2 August 2018
CW 1035 - Client Case Study: Dealing with Repairs, Property Management Software & Late Fees with Adam Schroeder, Part 2
Jason Hartman starts off today's episode with a tale of his current lawsuit and the experience it's given him with the legal system. The way our current system is set up nobody wins, and there doesn't seem to be a lot of accountability going on either.
Jason also plays some Voxer messages from client Drew Baker about his recent experiences doing self management. After that Jason finishes up his interview with podcast producer Adam Schroeder. This time the two discuss finding repair people, what to expect from property management software, whether to allow grace periods and what kind of late fees to charge.
[1:57] Nobody wins in our current legal system
[6:04] Get the latest properties available from Jason through the PropertyCast
[7:38] Drew's experience self managing
Adam Schroeder Interview:
[13:32] You should have a clause in the lease stating which repairs the tenant is responsible for
[17:58] What to expect from property management software
[22:01] The importance of an increasing late fee
Wed, 1 August 2018
CW 1034 - Client Case Study: Preparing for Self Management with Adam Schroeder, Part 1 & Why You Should Like a Good Recession
Returning guest Adam Schroeder joins Jason Hartman for this episode, as the two discuss the steps for transitioning from professional management of rental properties to self management. Adam and his wife have 3 (going on 4) properties and are thinking that the time is soon coming to venture out on their own. But before doing that there are some important things to do like what information to get from your property manager, what kind of initial contact to have with the current tenant, finding forms and contracts when you're finding/reupping tenants, pet rent, and more.
[3:36] Why Jason loves a good recession
[8:29] Jason's been involved in around 10,000 real estate transactions
[13:08] Sometimes removing a property manager actually makes things easier
[16:27] The information you need to get from your current property manager if you're going to make a switch
[21:26] A way to change your relationship with your property manager rather than completely ending it
[24:09] Bad property manager reviews on sites like Yelp might be a good thing, that's why you have to read them
[29:23] Insurance: individual policies or a commercial policy?
Mon, 30 July 2018
CW 1033 - European Socialism Disaster, Debunking Utopia & Scandinavian Unexceptionalism with Dr Nima Sanandaji, Part 2
Jason Hartman starts today's episode from Germany, on his way back to the land of capitalism, and he couldn't be happier. After nearly a month in Europe seeing the effects of socialism, Jason's ready to get back to the land where people are more motivated and innovation is more apparent. When governments get involved in picking the winners and losers, nothing good comes out of it, and Jason wants to see America avoid the fate of Europe.
Then Jason finishes his interview with Dr. Nima Sanandaji, originally begun in episode 1028. The two wrap up the interview discussing where the ideas for Adam Smith's "Invisible Hand" really came from, how the Nordic society actually ended up being socialist (and why it doesn't work in the places it's being tried now), and the dangers of government growth.
[2:48] Things in Europe are smaller and not as good of quality. We shouldn't become more like Europe, Europe should become more like the USA
[5:54] The government needs to get out of the business of picking winners and losers
Dr Nima Sanandaji Interview:
[8:20] Adam Smith's "Invisible hand" had been described in China and the Middle East thousands of years earlier
[11:36] Capitalism: the most successful "religion" of all time?
[14:56] The poor immigrants who left the Nordics for America have descendants that are much better off than those who stayed
[18:55] Governments can't shrink down. Once they bloat they collapse under their own weight
[21:57] The Western world needs to learn from history and go back to free market economic policies with minimal government
Fri, 27 July 2018
CW 1032 FBF – What Central Banks Do To Real Estate Investors & Aligning Investments With The Fed, The Creature From Jekyll Island
Today's Flash Back Friday comes from Episode 653, originally published in March 2016.
Jason’s mom will be attending the upcoming Venture Alliance Mastermind trip to Jekyll Island. She decided to prepare herself by reading the updated version of The Creature from Jekyll Island again. She and Jason review sections of the book and discuss the insanity which is the Federal Reserve and how the entity came to be. You are invited to join Jason and his mother on the Jekyll Island trip as a Venture Alliance member or as a guest. If you attend you will experience a piece of American financial history and possibly have your coffee disturbed by a famous hotel ghost.
[3:47] Jason’s mother’s assessment of the book “The Creature From Jekyll Island” and the history of the Federal Reserve.
[12:27] The ghosts of the Jekyll Island hotel do more than drink the guests coffee, they pick pockets too.
[18:28] Past podcasts guests, Chris Martenson and Bill Bonner agree, the Federal Reserve system is convoluted.
[22:38] We all easily pay 60% or more of our income to some sort of tax.
[32:36] Listeners must see the 99 Homes, The Big Short and Life and Debt documentaries.
[34:11] The government can tax people through taxes or inflation, which is the hidden tax.
[40:06] When you invest in income property you align yourself with the Federal Reserve.
Wed, 25 July 2018
CW 1031 - Increasing Time on Market, Increasing Inventory & Landlord/Tenant Relationships with Pat Parry
Jason Hartman talks with Patrick Parry, Orange County realtor & former investment counselor, about what signs Pat is seeing in the Orange County market that give him pause when it comes to the housing market. Days on market have escalated (some rather significantly) in every price bracket, and inventory continues to increase.
The two also discuss commercial real estate, and how it's a totally different game (with significantly less room for error) than residential real estate.
[5:17] Signs the housing market is cooling?
[7:29] Time on market has doubled as inventory increases
[13:42] The difference in the landlord/tenant relationship of residential vs commercial real estate
[18:58] Jason has been flat out lied to by commercial landlords
[21:14] You do not have protections in the commercial real estate world, you better have good lawyers and great research
[23:25] Commercial investors have a very high tolerance for loss due to vacancy
[29:07] The increase in home days on market based on sales price
[33:01] People are always looking in the rear view mirror when it comes to markets, except sellers, they're often banking on the greater fool theory when they price their wares
Mon, 23 July 2018
In today's intro Jason Hartman looks at a few signs in the real estate market that aren't so rosey, as well as adjusting the Brady Bunch house for inflation and seeing how real estate holds up against it (and why linear markets are the better bet for steady appreciation).
Then, in today's 10th episode, Jason talks with Dr. Robert Whaples, Professor and Chair in the Department of Economics, Wake Forest University and co-editor and managing editor of The Independent Review. The two discuss the current Pope's world view and the nature of the Catholic church today.
[2:21] Are there signs of upcoming trouble? There's definitely been a slow down in the higher end markets
[6:11] The Brady Bunch house is for sale, what's it selling for (and compared to what)?
[10:14] Linear markets give you more consistent appreciation than cyclical markets
Dr Robert Whaples Interview:
[14:17] What is Pope Francis' world view?
[18:42] How the economy is connected to the environment in the Pope's world view
[24:21] Do we need environmental regulations and taxes?
[26:08] Have we just exported our pollution?
[31:24] Where does the Catholic church come in on the uneven playing fields of markets and oligarchies
Fri, 20 July 2018
Today's Flash Back Friday comes from Episode 665, originally published in April 2016.
Just last year Greg Saylor was a corporate software engineer looking for a reliable investment strategy. He found the Creating Wealth podcast and listened during his long commute. He decided to pick up the phone and call one of Jason’s investment specialists. It’s now six months later and Greg has six income properties earning him $4000.00 in monthly income. His due diligence partnered with the extensive data resources available on JasonHartman.com have allowed him to get a step closer to financial freedom.
[4:01] What is your motivator? Do you expend more energy to conserve than to gain?
[12:39] Hartman Education is having a big 2-week sale!
Greg Saylor Guest Interview:
[18:57] Was it the Creating Wealth podcast that got Greg interested in real estate investing?
[26:29] The acquiring of the properties had the most components, everything else is pretty straightforward.
[27:49] Greg shares the details his first income property deal including the flaws.
[35:53] A certain percentage of risk is acceptable as long as you have a solid portfolio.
[40:06] Property taxes are one factor which is that varies greatly from market to market.
[45:18] Some rules for new investors to follow are to plan for additional expenses, be conservative on your numbers and have a reserve fund.
[48:07] The debt to income ratio is an important factor in financing.
Wed, 18 July 2018
Jason Hartman starts today's episode from Naples, discussing how, despite what you may think, the demise of America is greatly overstated when you start asking the question "Compared to what?". He also brings a morsel of hope to real estate investors, as housing inventory is showing signs of increasing and home owner equity is at an all time high (but fewer owners than ever are stripping that equity).
Then, in part 1 of the interview, Jason talks with Dr Nima Sanandaji, author of the new book The Birthplace of Capitalism - The Middle East, about how capitalism originally began in what is now Iran and Syria, and how the golden age of the Middle East was during the times of capitalism.
[1:46] Think the US is in decline? Well, compared to what? Because Europe isn't doing that great either
[7:41] Keep everything in perspective when you think your problems are huge
[13:00] Inventory could increase a bit in the near future
[16:03] Home owners have an estimated $5.8 trillion in accessible home equity, but fewer are taking cash than in previous eras
Dr Nima Sanandaji Interview:
[19:16] Birthplace of capitalism (the original form) was in what is now Iraq and Syria
[22:36] The golden ages of human civilization in China and India was driven by capitalism
[26:33] The ancient Persians were very free market oriented
[29:52] The irrigation for the Middle East was paid for by farm collectives, not the government, spurred on by strong private property rights
[33:27] Cyrus the Great believed the government's only role was to maintain private property and voluntary contract
Mon, 16 July 2018
Jason Hartman is joined by Venture Alliance member Carmen today in Naples, as the two discuss the importance of music on society (and why it might be more important than monetary control), why complaining is actually important, and some good book recommendations for those interested in learning more about the economy and real estate.
Jason also explores the current single family rental demand and what the demographics are looking like for the next 10 years.
[2:50] North Korea is sitting on $6 trillion of mineral assets
[8:07] Give Jason control of the music and he cares not who controls the money or makes the laws
[11:46] You have to be a complainer when people wrong you
[15:31] Some good books Jason recommends
[20:44] No place on Earth or time in history has big, intrusive, high tax, government burden made life better for citizens
[25:02] Single family demand: 57% of renters are renting single family houses
Fri, 13 July 2018
CW 1026 FBF - The Empowered Investor, Automated Self-Management Technology from Key Please Divyesh Panchal
Today's Flash Back Friday comes from Episode 785, originally published in January 2017.
During today’s episode, Jason shares his appreciation for the ability to self-manage rental properties and the dis-intermediation of single family home sales. The Chief Product Officer for Key Please, Adam Lorentzen joins Jason to describe the sought after service of landlord free, self-showings of rental properties. The Key Please business model focuses on automating the self-management process for owners as well as making the process as easy as possible for renters.
[1:34] Self-managing a property from a distance is possible
[4:16] Wall Street Journal article “Blackstone Wins Fannie’s Backing for Rental Home Debt”
[7:20] President Trump has a lot of energy and will be good for the American economy
[11:21] We will soon see the easing of landlord problems
Adam Lorentzen Guest Interview
[16:05] Key Please helps owners automatically self-manage their properties with 3 tools
[21:33] Adam is surprised by the number of users embracing the Key Please service
[23:42] Adam describes the process for the renter and the property owner
[29:10] The simple hardware has a deeper level of security than wifi or cell-based systems
[31:56] People who view the properties can provide anonymous feedback
[33:20] This service is for property owners who want flexibility in how they manage their properties
[36:51] Key Please wants to assist small property owners and renters in the near future