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