Jason goes into his client case study with Gary & Sue Pinkerton. The two give Jason a lot of background on why they’re investing in real estate, why they continued investing even when their initial property went horribly awry, the way (and reason) they went about their mortgage sequencing, and how they picked the markets they’re currently in.
[2:22] Gary & Sue’s first property did NOT start off well
[7:12] It’s crucial to listen to your wife’s intuition
[11:04] How Gary & Sue decided to split up their mortgages and why
[14:13] Why Gary & Sue picked the markets they’re in today
[18:22] Sue’s self-management tips
[21:58] The fragmented nature of single family real estate investing is frustrating
[25:19] There’s NO SUCH THING as a passive investment
Jason Hartman talks with Peter Shankman, author of Faster Than Normal: Turbocharge Your Focus, Productivity, and Success with the Secrets of the ADHD Brain, about how people with ADHD can use it to their advantage, what actions people need to take in order to be successful in their ventures, how to figure out what your audience wants, and when to ignore your audience.
[4:04] How is ADHD a benefit?
[6:31] It’s important to set up your life in a way that doesn’t allow you to get derailed, and the 4 undeniable ADHD life rules
[9:35] You can lead the life you want, you just have to be willing to make the trade offs
[13:43] Your audience will tell you what they want and where they are, if you’re willing to listen
[15:38] The only time you want to ignore what your audience is saying they want is when you’re a part of a big market disruptor
Jason talks with Jeff Meyers, President at Meyers Research, about the state of the housing market across the USA, and how much runway the market might have. They also discuss whether millenials are finally ready to buy their first houses, and the incredible impact the self-driving car will have.
[2:13] Are the millenials finally entering the home buying market?
[5:04] There’s been a long economic recovery, but housing hasn’t led the way so Jeff sees more runway
[9:43] When did the real recovery from the Great Recession begin, and how does it affect where we are in the housing cycle?
[12:24] Mortgage lending is getting tighter than ever, with the average FICO score on each loan being 720 (the banks are allowed to loan at 680)
[13:56] The self driving car could cause a resurgence of the suburbs, but it will DEFINITELY be a game changer for real estate (perhaps like how Amazon has changed the retail industry)
[17:09] The cottage industry that could spring up out of the emergence of the self driving car
Jason Hartman talks with Mike Moyer, creator of Slicing Pie, about how to partner with people on startups and real estate investing in a way that fairly incorporates everything people bring to the table. The two discuss the need to factor in work, cash, ideas, goods, etc when valuing contributions, as well as the multipliers for each faction depending on their scarcity.
[2:08] You have to go into a startup with the knowledge that you can lose all of your money
[3:09] How would you use Slicing Pie in a real estate deal?
[7:17] Why there’s a difference between cash & non-cash contributions when you’re slicing
[10:12] The reason there are multipliers in slices is so that there are consequences if someone leaves the pie
[13:35] Why time based vesting isn’t the way to go
[16:04] What is Mike’s definition of a startup?
[21:20] What are all the ways you can get a slice of pie in a company?
Jason talks with Jorge Newbery, author of Debt Cleanse: How to Settle Your Unaffordable Debts for Pennies on the Dollar, about fake news, erasing debt, the creation (and destruction) of bubbles, and what to do if you’re in trouble with a loan.
[1:52] How Jorge got into the real estate business, and was taken down by a single ice storm
[6:12] The City of Columbus, OH wouldn’t let Jorge’s renovations pass inspections
[10:22] A fake news story about Jorge being investigated turned the public against him and his renovations
[14:39] Why Jason is okay with the strategic default practice, even as a lender himself
[16:05] In his quest to erase his $26 million in debt, Jorge found an error that erased $5 million of it, which led to a startling revelation
[20:05] Our whole society is set up to create massive bubbles that burst and allow the powers that be to buy assets for pennies on the dollar while we blame ourselves for the situation
[22:11] The wealth concentration in our nation is becoming untenable
[23:46] The #1 piece of advice for if you’re in trouble with your loan
For years cost segregation has only been economic feasible for commercial properties, as the sheer cost of the process outweighed any potential tax savings that would be created. Now, however, times have changed and people like Joe Viery can help you get 10x or more in tax write offs as the cost of the cost segregation.
Listen in as Jason Hartman and Joe Viery discuss how this became possible for single family rentals, how much a cost segregation costs, and what kind of savings you can realistically expect.
[2:39] What’s going on that cost segregation is becoming possible for single family investment properties?
[8:19] How much do cost segregations cost for a single family home?
[11:13] What kind of tax savings you can get out of a cost segregation
Jason Hartman went on The Financal Survival Network with Kerry Lutz on October 16, 2017, to discuss what’s going on in real estate around the country, if we’re approaching the top of the market, what’s happened to the banks that were “too big to fail”, Blockchain technology, and more.
Host Kerry Lutz and Jason also take a dive into the mortgage crisis of 2008, and whether it could make a comeback in today’s environment.
[2:46] Where are the assets?
[7:22] Why it’s important to remember that you can’t hear the dogs that don’t bark
[9:27] Too big to fail has gotten even bigger
[12:54] Jason saw the first part of the mortgage crisis coming, but didn’t see the second part that involved Wall Street coming at all
[17:57] Blockchain technology is phenomenal, but it’s not Bitcoin, which you HAVE to remember
Jason Hartman talks with Daniel Amerman, CFA, about the need for legitimate economic data and whether we can get any of that from the government. The two also take a deep look at our nation’s rising debt and what that means for the US currency moving forward.
[2:42] Daniel recently reverse engineered the Congressional Budget Office’s long term economic outlooko
[6:32] Is the CBO a credible source of information?
[8:41] Technically there’s no such thing as an unfunded liability
[13:47] What does a heavily indebted nation mean for the investor?
[15:57] “It’s crucially clear that, when you have a $20 trillion national debt, that interest rates can’t rise too much”
[19:48] Why Jason hates hedonic indexes
[23:39] There’s a lot of inflation that we either don’t see or we don’t acknowledge
[28:12] A 2% higher rate of inflation is magic for maintaining financial solvency
[31:23] When everyone learned that stocks were the magic wealth building machine they bid the prices of stocks so high the dividends crashed, which ruined the wealth creation
[34:02] Daniel is a huge fan, not of income property, but of the mortgage
In the final part of Jason’s interview with Andrew Zatlin, the two take a look at whether the future of our economy is inflationary or deflationary. The two also look at the impact of technology on inflation, how it impacts the rental markets, and where the volatility in our economy will be in 2018.
Disclosure: this interview was recorded prior to the GOP Tax Reform being written and passed
[1:32] The proof in the inflation pudding is shipping costs
[6:47] The economy is strong in the background
[8:31] Warehousing had a huge impact on the start of the internet
[11:10] When you reach the point where payroll and population growth are the same you don’t get wage inflation
[15:35] When housing affordability is low and prices soften, the rental market strengthens
In the first part of Jason Hartman’s interview with Moneyball economist Andrew Zatlin, the two of them take a deep look at what’s going on in the housing market through the lens that Andrew uses. He looks at hiring patterns of home builders, and has seen a distinct problem in their search for labor. So many industries are hunting for labor that it’s creating a bottleneck.
The two also look at short-term rentals, hotel vacancies, the Fed’s monetary policy, and what’s creating the demand for housing.
[1:33] Andrew likes to check in with companies about what they’re doing in regards to hiring
[4:02] Home builders can’t hire enough people right now. The bottleneck is labor because there’s a LOT of competition for it
[7:00] One question we need to ask is: what’s creating all this demand for housing?
[11:04] The environment today makes it more attractive to buy rather than rent
[16:54] Do short-term rental providers need to worry about oversupply?
[19:12] Hotel vacancy rates tipped into the negatives this past year because of short-term rentals exploding in popularity
[21:52] Demand will create supply, but sometimes supply can create demand