Jason Hartman and Adam join forces today to discuss a big development in the mortgage market. Fannie Mae/Freddie Mac conforming loan limits are being increased again, this time to over $510,000, which will have substantial impacts on the housing market overall.

Later, Adam talks with one of the network lenders about where interest rates are today and what a weakening economy in 2020 might put them in a few months.

Key Takeaways:

[2:11] Fannie Mae and Freddie Mac are increasing the conforming loan size to over $510,000

[7:03] Conforming loan limit increases generally lead to home price inflation

[10:54] The higher loan limit might impact hybrid markets more than cyclical

[14:57] Insights from Voxer messages left by listeners

[18:33] Technology is increasing the value of our properties

Adam Mortgage Minutes:

[24:57] Current rates for a $100,000 property with 20 or 25% down

[28:22] How might rates react if we see weakening in the economy that some are predicting in 2020?

[30:08] Mortgage starts don't seem to be slowing down for investors

Website:

www.JasonHartman.com/Properties

Jason Hartman has another client case study, this time with 26 year old Jaden Zubal, an associate wealth strategist at Paradigm Life. Jaden started attending events when he was 22 or 23 and recently got into the real estate game by purchasing properties in Jacksonville, FL and Memphis, TN.

Jason and Jaden discuss how Jaden decided that new construction was the way for him, what market he likes for his next as he diversifies geographically, and how the 10 Commandments of Real Estate Investing have helped him along the way.

Plus, check out the link below and you can get a free audio and digital copy of Heads I Win, Tails You Lose by Pat Donohoe, as well as a complimentary consultation with Jaden.

Key Takeaways:

[2:45] Good news for Texas property owners

[4:42] Housing inventory is even worse than we thought

[7:43] The average home listing price in America is $312,000

Jaden Zubal Client Case Study:

[10:31] Jaden attended his first Meet the Masters in her early 20s

[13:33] Which of Jason's commandments Jaden has found most useful in his investing journey

[16:24] The 2 things Jason believes Maslow left out of his hierarchy of needs

[18:50] The first 2 tiers of safely growing your money and keeping it protected

[23:46] Student loan debt is creating a generation of people feeling pessimistic about their financial future, so what's going to come of them?

[26:08] One of the separating elements of Jason's network is the value of the investment counselor

[30:12] What changed Jaden's mindset on new properties vs renovated

Website:

www.ParadigmLife.net/Jaden

jzubal@paradigmlife.net

www.JasonHartman.com/Properties

Jason Hartman and Investment Counselor Doug takes today's episode to discuss what's going on with the average FICO score across generations. The average FICO score is not something that Americans can be proud of, but it provides some serious advantages to real estate investors.

Then Jason and Doug highlight several Florida properties that are able to cash flow with new construction, which is something that is getting harder and harder to do in today's environment. Florida is becoming a bigger draw to those running away from high tax states, which is driving their real estate market.

Key Takeaways:

[2:55] FICO scores are low across all generations

[6:18] You want a good credit score, not a perfect credit score

[10:40] Real estate takes about 8% in transaction costs

[16:05] Doug spotlights a Florida property

[19:43] Blogcast: How does inflation devour debt?

[23:39] Migration of residents will cause a shift in ownership in the old areas

[26:47] Real estate markets tend to expand and contract from the top

Website:

www.JasonHartman.com/Properties

Today's Flash Back Friday comes from Episode 243, originally published in February 2012.

Jason Hartman interviews author, former Wall Street senior banker, and best-selling investigative journalist, William (Bill) D. Cohan on the events that led up to the current economic crisis. Bill explains the choices that the big firms, such as Goldman Sachs, JP Morgan, etc, made regarding what type of institution they were going to be, the path of these firms that led up to the current crisis, and how they used the bailout money gifted to them. He said it was one big party on Wall Street, during which brokers were to bring in revenue using a lot of whacky products, until everything came crashing down. Huge bonuses were paid out from the revenue collected from unsuspecting clients.

Bill and Jason also discuss the Occupy Wall Street Movement. Bill expressed disappointment in the message of the movement, saying it isn’t clear and they need to learn how Wall Street really works so that they can be more effective in bringing about reform. Wall Street has been influencing what goes on in Washington and paying lobbyists and donating to congressional coffers so that they can get the regulations, or lack thereof, that they want, i.e. the Dodd-Frank Wall Street Reform and Consumer Protection Act. Bill talks about how the expansion of Wall Street into Middle Class America was not an accident, using the example of Merrill Lynch being a public company. This ultimately led to broken trust between Wall Street and Main Street, as people have now shied away from risk taking.

To solve the problems, Bill suggests changing the incentive system on Wall Street, in that it can no longer be okay to take huge risks with people’s money or get paid big bonuses whether they lose money for the firms or not, as well as going back to having to use their partner’s capital to operate. William D. Cohan offers audiences a unique, close-up perspective of the greatest financial crisis since the Great Depression. He combines deep knowledge of the investment banking world with the fine storytelling skills of an award-winning investigative journalist.

Website:

www.WilliamCohan.com

After his intro discussing getting the money thing out of the way in pursuing your life and the difference between law and ethics, Jason Hartman talks with Stephen Davis, author of Truthteller: An Investigative Reporter’s Journey Through the World of Truth Prevention, Fake News and Conspiracy Theories, about the prevalence of fake news online and in every form of media. The two try to find ways to combat the issue head on and what the average person can do today (and in the future) to avoid being fooled.

Key Takeaways:

[6:34] Get the money thing out of your way

Stephen Davis Interview:

[12:32] It's easier now than ever before for governments to lie to you and get away with scandals

[14:36] Fake news travels faster than truth on Twitter

[17:40] If you want good, investigative journalism, you're going to have to pay for it

[23:45] We need to stop letting companies like Facebook and Google escape the responsibility that media outlets have

[30:10] How governments deceive you

[36:21] Dealing with fake reviews on sites

Website:

www.StephenDavisWriter.com

www.JasonHartman.com/Properties

Jason Hartman and one of the network's Florida market specialists discuss the Jacksonville market and what kind of housing is currently available. The two break down a pro forma for one of the available new construction properties and examine why Florida has become such a hot spot for people fleeing both the East and West coast states.

Then we have a segment from Real Data founder and president Frank Gallinelli about financial terminology. It's important when reading pro formas and doing your due diligence that you know what these metrics are. Frank breaks it down so that you're prepared when you go into your next property.

Key Takeaways:

[4:28] Florida is now drawing people from the East and West coast

[6:28] Jacksonville market profile

[10:27] Examining a pro forma of one of the new construction properties available in Florida

[13:00] There are a couple properties available that you could take advantage of in a 1031 exchange

[15:53] People are moving to Jacksonville to be near St Augustine, which is the 2nd busiest place for tourists in Florida behind Disneyworld

[18:24] Frank Gallinelli on financial terminology

Website:

www.JasonHartman.com/Properties

www.RealData.com

Jason Hartman starts today's show discussing how it's possible that low interest rates can be used as financial repression tool even though it seems like a good thing at first glance. He also explores an article highlighting affordability issues across the nation and how it's impacting markets that Jason's investors bought homes in prior to the runup.

Then Jason talks with Peter Hirshberg, founder of Maker City® Project and CEO and co-founder of Lighthouse.one, about Opportunity Zones and how they work with constructing cities. Jason and Peter explore how the incentives were created and why they are crucial to the success of projects like Opportunity Zones.

Key Takeaways:

[3:47] Part of financial repression is low interest rates

[7:42] Affordability is becoming more and more of an issue across the US, including some where investors used to be able to get reasonable properties

[10:05] The Water Theory of money

Peter Hirshberg Interview:

[14:43] Economic reinvention is a bottom up thing as people found what they were good at and innovators moved into the city

[18:55] Why you have to create incentives like those the Opportunity Zone offers

[22:57] Why real estate matters

Website:

www.Lighthouse.one

www.JasonHartman.com/Properties

‘Their house is on fire’: the pension crisis sweeping the world

Housing in these cities may become unaffordable by 2028

Jason Hartman and real estate attorney Bob start today's show discussing the importance of taxes and how they can seriously impact your real estate investing journey throughout your life. They also discuss what makes a good investor and the direction of law when it comes to real estate.

Then Jason talks with Steve Glickman, Senior Economic Advisor to President Barack Obama and chief architect of the Opportunity Zone project, about how the Opportunity Zone system works, the definition of an Opportunity Zone and what benefits the program provides for real estate investors.

Key Takeaways:

[4:33] The multiplier effect of moving to a place where your money is treated better

[9:37] Jason's prediction for the next thing landlords will be held accountable for under the law

[15:50] What good, talented lawyers for commercial properties always do

[19:18] Good investors act, but only because the deal is good, not because they have the money

[23:27] Taxes are like reverse amortization

[26:02] High taxes encourage bad investments

Steve Glickman Interview:

[28:14] There are now 8.766 Opportunity Zones across the US

[32:31] There are about 300 Opportunity Zone funds targeting $65 billion and have raised about 15% so far. How big is this expected to get?

[35:28] The 2 big factors in why zone based programs become unsuccessful

[37:16] What is the Opportunity Zone program?

[40:23] Will Opportunity Zones exacerbate gentrification?

Website:

www.Lighthouse.one

www.JasonHartman.com/Properties

Today's Flash Back Friday comes from Episode 983, originally published in April 2018.

Jason Hartman takes a victorious look at a recent Wall Street Journal story declaring that more people are viewing renting as a long-term solution to their housing situation. That is FANTASTIC news for landlords, and will put the upward pressure on rent that every investor wants. Jason also gives a few travel hacks for going on a trip to multiple climates, and includes another market profile from producer Adam, this time on the Indianapolis market.

Key Takeaways:

[2:25] The next decade of being a landlord is going to be amazing

[7:05] More and more people are seeing renting as a long term housing solution

[10:56] Jason's travel hacking tips for going on a multi-dimensional weather trip

[14:57] Indianapolis Market Profile

Website:

www.JasonHartman.com

Jason Hartman and Rabbi Evan Moffic start off today's show discussing the major issue of senior housing. It's quite possible that it's been overbuilt and Jason and Evan discuss how you as an investor can take advantage of the aging at home trend.

Then we have a second part of Jason's extended interview with Ali Wolf, Director of Economic Research at Meyers Research, LLC., about wage growth, inflation, home appreciation and why interest rates have created some of the bubble that we find ourselves in.

Key Takeaways:

[4:27] Senior housing may have been way overbuilt

[10:45] One of the biggest miscalculations with senior housing was that they thought 65 would remain "old"

[13:04] The way to take advantage, as an investor, of the increase in elderly people staying in homes then make sure you're including single story properties in your portfolio

[18:41] Jason's prediction on the future of Uber/Lyft/etc drivers

Ali Wolf Interview:

[20:26] Collective wage growth since 2015 is 13%, but inflation and home prices have gone up 25%, causing a widening gap

[24:51] Appreciation has slowed in most markets to the 2-3% range

[29:16] The only 2 markets that have seen have a lot of growth in sales in the past 2 years are Indianapolis and Phoenix

[32:01] Ali thinks the next downturn could be caused by a "Fed Induced Bubble"

Website:

www.MeyersResearchLLC.com

www.JasonHartman.com/Properties