Creating Wealth Real Estate Investing with Jason Hartman

Jason Hartman

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Oct 14, 2016 • 46min

CW 739 FBF - Accelerate Wealth Creation & Reduce Risk by Leveraging Debt with Donald Trump

Let's examine the subject of debt, both good and bad. The prudent use of leverage or borrowed money can accelerate wealth creation and reduce risk. We'll look at many perspectives including a profile of Donald Trump and his "troubles" in the 90's.
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Oct 13, 2016 • 47min

CW 738 - Dr. David D'Ambrosio Client Case Study - Equity Stripping, 1031 Exchanges & Market Diversification

Investment Counselor, Sara is back on the show. She joins Jason to discuss her three new properties in Memphis, how a client beat her to the punch on other properties she was interested in and just how competitive the market is right now. And in the client case study, Dr. David D'Ambrosio shares his experiences with the 1031 Exchange on properties in the Orlando and Indianapolis markets. He shares his opinions on why more high-tax bracket professionals are not investing in real estate and he asks Jason about what his next steps should be? The beautiful thing about real estate is you can acquire an asset, get your money back out and still own and control the asset. Plus, you pay no taxes on the money you extract. Key Takeaways: [2:12] Sara just closed on three properties in Memphis and she wears PJ's to bed. [6:16] Rate locks - Should you let it float or lock it in? [9:15] Commodities that make up a house are copper wire, glass, steel, petroleum products are independent of any currency. [13:53] Is the Creating Wealth show the Fox News of real estate? One listener thinks so. Dr. David D'Ambrosio Client Case Study: [17:34] Dr. David D'Ambrosio is Radiation Oncologist living the American Dream. He has always had an interest in real estate. [19:52] Dr. David recently did a 1031 Exchange and then purchased four properties in Orlando. [21:34] There are two ways to diversify a real estate portfolio. One is location and the other is through cash flow and appreciation. [23:25] The 1031 Exchange allows for only 45 days for identifying properties but up to six months to close. [26:08] It's frustrating more people, doctors in particular, aren't investing in real estate. It's an absolute no-brainer. [32:16] Local community banks will provide financing to investors after they reach their traditional property limit. [38:24] Is it feasible to do a cash out refinance if you can get a sizable amount of cash? [40:27] The deferred down payment option offered a nine-year break even point. [43:25] Equity stripping is pulling the money out of a property, having control of the cash and still own the property. Mentioned in This Episode: Jason Hartman Venture Alliance Mastermind Hartman Education
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Oct 11, 2016 • 41min

CW 737 - Market Profiles of Huntsville, Montgomery & Birmingham, Alabama

This episode introduces three Alabama markets, Huntsville, Montgomery & Birmingham. The information provided by a local market specialist in the area analyzes each market's economic profile, existing and future investment opportunities and property characteristics. These carefully selected markets are providing adequate cash flow properties and sufficient yields in addition to possible appreciation due to the stable local economies. Key Takeaways: [1:44] A lack of inventory in Huntsville, Montgomery & Birmingham delayed this episode for months. [3:07] Happy Belated World Smile Day! [10:29] An inspiring smile poem. [12:21] A brand new JasonHartman.com is coming soon to a browser near you. Huntsville, Montgomery & Birmingham Market Profile with Eric: [15:04] Market are selected based on the amount of existing competition in the area. [16:23] Recent economic growth in Alabama makes it a suitable market for investors. [19:38] Huntsville, Alabama facts and trending economic factors. [22:02] The local market specialist rehabs houses for stability in addition to cosmetic upgrades. [25:19] Are warranties available on the Huntsville, Montgomery & Birmingham properties? [27:02] Birmingham, Alabama facts and trending economic factors. [30:59] Montgomery, Alabama facts and trending economic factors. [32:41] Longer leases are gaining popularity but remember to add rent increases year-over-year. [35:27] Rental insurance is always recommended. Mentioned in This Episode: Jason Hartman Hartman Education
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Oct 7, 2016 • 1h 6min

CW 736 FBF - American Demography from Baby Boomers to Generation Y with Ken Gronbach Author of 'Age Curve'

Many demographic changes are taking place, with the Baby Boomers, a large generation, retiring, and Generation Y, a larger generation than the Baby Boomers, consuming at record levels. Join Jason Hartman and demographer, Ken Gronbach, as they discuss this upcoming "storm." Ken describes Generation Y as an exciting generation, where the United States is the only country with this large of a group at the present time, and that it is very important that businesses recognize and anticipate their markets as Generation Y grows up. Generation X is more of a mystery generation because of its smaller size, which makes it less of a valuable market. Ken believes that the United States' best days are ahead as people bail out of the European Union. He also believes that China's economic future is bleak due to artificial tampering with the population, with demographic numbers showing China in trouble economically within ten years, struggling to feed themselves within 15 years. Ken shows how the housing market is being held hostage by big bank foreclosures and why this log jam will soon correct and precipitate a restoration of the United States economy. Ken also talks about how manufacturing will return to the United States with a vengeance because the United States is the only industrialized nation with a huge young highly skilled workforce. Kenneth W. Gronbach is a gifted keynote speaker and a nationally recognized expert and futurist in the field of Demography and Generational Marketing. Ken entertains his audiences with his own special brand of wit, humor and clear communication. He makes the science of shifting demography come alive with real life examples that make it relevant to today's culture, business climate and economy. In his book "Age Curve, How to Profit from the Coming Demographic Storm", published by The American Management Association, Ken takes you through a fascinating common sense understanding of shifting demography and the related opportunities and challenges. The demographic landscape in the United States is made up a series of waves that are about twenty years in duration. It would follow that business will rise and fall according to the critical mass of customers heading toward it. Ken's latest book "Decades of Difference, Making it Work" (HRD Press), about the United States workforce, was released in October 2010. Ken also writes for the CNBC Guest Blog. Ken's perspective is macro, a view from 30,000 feet, and very big picture. Demographers are able to forecast markets, societal phenomena, and economics with uncanny accuracy because they count people, not money or things. For example crime has been down in the United States for the last twenty years because the number of high risk crime committers (men 15 to 30 years old) has been low and fully employed. This is because the fertility in the United States dipped sharply between 1965 and 1984 creating a deficit in our population of about nine million people. This shortage of young people in the labor force also drove labor costs up and manufacturing off shore. Ken says the Age Curve will change the way businesses market to consumers and that a sea of entrepreneurial business starts will rule as the economy turns around.
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Oct 6, 2016 • 33min

CW 735 - Market Profile of Macon, Georgia - An Under The Radar Opportunity

As Americans spend beyond their means and abstain from adding to their savings accounts, the demand for rental properties is growing at a phenomenal rate. Jason describes how your past and future investments in income properties will pay dividends for many years to come. And in the market profile, the Macon, Georgia market is dissected and explored. This somewhat undiscovered market ranks #2 out of 20 for highest residential rental returns. We learn the average rental home price in the market, the typical rehab costs and which employers are persuading renters to stay in the area. Key Takeaways: [3:09] Do not skip the Flashback Friday episodes of the Creating Wealth show. They are hand picked for you. [5:38] Macon, Georgia and other small markets can be good investments due to a limited inventory available. [8:02] Americans are not saving money which makes it a phenomenal time to own rental property. [9:12] This is how inflation and deflation are directly related to the real estate market. Macon, Georgia Market Profile with Eric: [17:00] The Macon, Georgia downtown area has been revitalized in recent years and Mercer University is expanding. [20:22] Employment opportunities in Macon, Georgia are diverse with both blue and white collar jobs. [22:38] Typical costs for an investor are between $80K - $125K for the home and typical rehabs are $15K-$30K. [27:03] A property manager in Macon, Georgia charges 10% of the gross rent, but no renewal fee. [29:37] Macon, Georgia is the second highest market for residential rental returns. Mentioned in This Episode: Jason Hartman Longevity and Biohacking Podcast Hartman Media
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Oct 4, 2016 • 26min

CW 734 - Client Case Study with Brian, Refi or 2 for 1 on Highly Appreciated Properties to Buy in Linear Markets

Jason's guest, Brian is a client and a longtime Creating Wealth Podcast listener. Brian describes his early days of real estate investing when Sara initially walked him through the buying process. The properties he purchased in Atlanta and Memphis have now matured and Brian is faced with making a decision. Should he refi-til-ya-die or to do a 1031 exchange and get 2 for 1 on his highly appreciated properties. Jason shares his insights on best business practices, how to use an IRA as a tax savings vehicle and recommends some "must read" books on real estate investing. Key Takeaways: [1:31] The Wells Fargo contract claw back. [3:26] "Make Six Figures" Bloomberg article tells a scary tale from the content portal. Case Study with Brian: [8:27] Brian read Rich Dad, Poor Dad in high school which led him to the Creating Wealth podcast. [9:49] Brian was pleased with the support he received from Sara and the Local Market Specialists. [12:44] Is refi-til-ya-die always the best option or does the 2 for 1 plan make better financial sense on highly appreciated properties? [16:25] The 2 for 1 exchange gives the owner all of the equity to reinvest. The refi-til-ya-die option is limited to the cash-out loan to value ratio. [17:40] A refi may be a simpler option and offers a locked-in lower interest rate. [20:08] Brian shares his real estate investor stories on his website Rental Mindset. [21:29] When buying real estate inside of an IRA you get a tax efficient vehicle inside of another tax efficient vehicle. [22:11] Read Garrett Sutton's Loopholes of Real Estate. [23:29] Rationalizing buying a property sight unseen. Mentioned in This Episode: Jason Hartman Hartman Education Rental Mindset
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Sep 30, 2016 • 50min

CW 733 FBF - Jason Hartman – Rent-to-Value Ratios, Bitcoin, & The Case-Shiller Index

There's a nostalgic feeling to today's Creating Wealth Show as Jason Hartman provides a live recording from the 2014 Meet the Masters event in Orange County, California. This gives listeners a taste of what they can expect from the January 2015 event in Irvine, California, and also provides a good opportunity to see how far the financial and real estate worlds have come over the past months. Key topics covered include the Case-Shiller index, reassessing Rent-to-Value ratios and the development of bitcoin. Key Takeaways 04.30 – Jason Hartman's investment strategy doesn't focus on appreciation – if it happens, it's a bonus. 07.45 – Bitcoin and its competing alternative cyber currencies really came about because people are starting to doubt the fiat money Central Banking model that we've become accustomed to. 10.50 – Despite being the most commonly used index, Jason Hartman would only recommend 6 of the 20 markets proposed by the Case-Shiller index. 14.08 – As humans, we find it inherently difficult to know when to cut losses and just walk away. 15.50 – Niall Ferguson claims that the most powerful part of the financial system is the bond market, and we would all do well to remember that. 20.09 – Real estate is not a very liquid market and so even when prices drop, they don't drop as quickly as most other asset classes. 26.18 – Rent-to-value ratios change totally if you think about the actual utility cost per month – how much is your renter paying to use your property, and how does that compare with what you think the value is? 31.23 – The forms and uses of money have changed many times throughout history, and now we're dealing with the technological side of currency, which has led us to bitcoin. 39.50 – Jason Hartman goes through step-by-step considering the relative merits and failings of the dollar, bitcoin, gold and income property. Mentioned in this episode The Ascent of Money by Niall Ferguson
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Sep 29, 2016 • 36min

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. Mentioned in This Episode: Jason Hartman Hartman Education Thomsett Publishing
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Sep 26, 2016 • 42min

CW 731 - Investor Case Study & Self-Managing Income Properties Q&A - Part 2

Drew, a long-time real estate investor, joins Jason for the introduction portion of today's podcast to discuss the pitfalls of trying to time the market, bulletproofing your properties and the downside of over-diversification. This episode finishes with a recording of the self-management expert panel of Jason, Fernando and Oliver answering investor's questions during the most recent Software and Buying Event. If you have questions about moving from a property management service to self-managing your own properties this Q&A session is a must listen. Income property investors get answers to their real-life concerns about self-managing properties. Key Takeaways: [3:05] Drew sells commercial printer cartridges on amazon (shameless self-promotion) and invests in real estate. [6:02] Was it a wise choice to buy a property in San Jose, California in 1986? [9:57] Real estate can be a forced savings program for people who lack financial discipline. [12:20] Be sure to have enough money to bulletproof your properties when you first purchase them. [16:32] Don't be a speculator, be a cash flow investor. [22:54] Be careful not to over-diversify your real estate portfolio. Self-Management Panel Q&A: [24:49] Is it difficult to find tenants when self-managing properties? [27:35] Make sure to take good photos of your properties. [28:16] What are the best communication tools to use with tenants? [31:20] How to facilitate move out inspections, handle legal infringements and qualifying for the real estate professional material participation time. [39:00] These are the questions to ask property managers when vetting them. Mentioned in This Episode: Jason Hartman Venture Alliance Mastermind Hartman Education Ink Safari Cozy Voxer
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Sep 23, 2016 • 48min

CW 730 FBF - Lori Ann LaRocco – 7-Steps To Success In Business, CNBC & Author of 'Opportunity Knocking'

Today's episode of the Creating Wealth Show deals with issues other than business and finance, but guest Lori Ann LaRocco of CNBC joins Jason Hartman to discuss her latest book, Opportunity Knocking: Lessons from Business Leaders. She talks about the pyramid notion of achieving leadership success both in your personal and business life and how important it is to know yourself before you can even hope to expand your potential for success. Key Takeaways 01.53 – Stocks of the physical merchandise of the Meet the Masters and Creating Wealth Home Study Courses are still available but running low:www.JasonHartman.com/Products 03.24 – Successful leaders in any field all seem to follow a series of seven strategies, starting with something as simple as knowing yourself. 06.46 – Find others who inspire you and then form and follow your own aspirations. 10.33 – Take your idea and stick with it. Even if it's not always popular, stick with what you know to be right. 16.54 – True passion is much more attractive to an employer or investor because it's a great motivator. 19.55 – Some levels of the pyramid take longer to achieve, but it's the culminated effort which brings success. 27.03 – Self-belief is really one of the most important elements here. 28.05 – To find out more information about Lori Ann LaRocco, head to her blog at www.LoriAnnLaRocco.wordpress.com 30.06 – In Lori Ann LaRocco's earlier book, Thriving in the New Economy, she created the mini biographies of various CEOs to show their reactions and their mistakes in the lead-up to and aftermath of the financial crisis. 33.55 – The way that these bubbles work is that when you're in it, you just can't see it. Even with hindsight, we don't seem able to learn. Mentioned in this episode Opportunity Knocking: Lessons from Business Leaders by Lori Ann LaRocco Thriving in the New Economy by Lori Ann LaRocco Start with Why: How Great Leaders Inspire Everyone to Take Action by Simon Sinek

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