1896 FBF: Michael Thomsett - Real Estate Market Valuation and Analysis & The Landlord's Financial Tool Kit

Today's Flashback Friday is from episode 732, published last September 28, 2016.

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:

Jason's editorial:

1:42 Segmenting the real estate market is rarely done properly.

3:41 Make it a goal to live in a no income tax state as a wealth creation strategy.

6:57 Information on the next Meet the Masters, Hartman Education Special Bundles and available properties.

Michael Thomsett Guest Interview:

12:12 The 9/10 Principles of Real Estate Evaluation.

13:20 Defining the Principles of Progression and Regression.

14:35 The Principle of Conformity is keeping the features of a property in line with others in the area.

15:37 The Principle of Substitution relates to the condition of the property.

16:11 The Principle of Change applies to the economy, demographics, employment, and other "fact of life" incidents.

17:12 The Evaluation Principle of anticipation is when expectations about future events affect the market value.

20:50 The Contribution Principle - If the improvement is worth more than the cost to make it.

22:12 Plottage or Growth Management should be consistent use of the surrounding lands.

24:52 Highest and Best Use - Real Estate evaluations are best when land is utilized in the best possible way.

26:39 The Competition Principle states an opportunity for a profitable investment leads to competition.

32:13 All the necessary tools for landlords are included in the second edition of Michael Thomsett's book.

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