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