Creating Wealth Real Estate Investing with Jason Hartman CW 732 Michael Thomsett - Real Estate Market Valuation and Analysis & The Landlord's Financial Tool Kit
Jason's guest, Michael Thomsett has over 35-years as an Accountant and is an investor in the most tax-favored asset class in the U.S., income properties. Mr. Thomsett has written over 90 books. His book, The Landlord's Financial Toolkit will soon be printed as a second edition and re-named The Real Estate Investor's Financial Toolkit. During today's episode, he shares ten principles of real estate evaluations and unpacks each principle, so even those with a limited understanding of income property investing can follow along.
Key Takeaways:
[1:29] Segmenting the real estate market is rarely done properly.
[3:28] Make it a goal to live in a no income tax state as a wealth creation strategy.
[6:44] Information on the next Meet the Masters, Hartman Education Special Bundles and available properties.
Michael Thomsett Guest Interview:[11:46] The 9/10 Principles of Real Estate Evaluation.
[12:54] Defining the Principles of Progression and Regression.
[14:09] The Principle of Conformity is keeping the features of a property in line with others in the area.
[15:11] The Principle of Substitution relates to the condition of the property.
[15:45] The Principle of Change applies to the economy, demographics, employment, and other "fact of life" incidents.
[16:46] The Evaluation Principle of anticipation is when expectations about future events affect the market value.
[20:24] The Contribution Principle - If the improvement is worth more than the cost to make it.
[21:46] Plottage or Growth Management should be consistent use of the surrounding lands.
[24:26] Highest and Best Use - Real Estate evaluations are best when land is utilized in the best possible way.
[26:13] The Competition Principle states an opportunity for a profitable investment leads to competition.
[31:47] All the necessary tools for landlords are included in the second edition of Michael Thomsett's book.
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