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