Fri, 29 December 2017
Jason Hartman talks with Ryan Schellhous, founder at IndigoSpire CPAs & Advisors, about the new tax plan. The two start off with a 30,000 foot overview of the plan, then drill down into specific components of the plan as they figure out who is going to be helped and who may not see as much of a benefit under the plan. Ryan explains the biggest revenue raisers and "losers" under the new bill, and some of the most important pieces that will impact individual filers.
[3:28] The 30,000 foot overview of the GOP Tax Reform
[5:23] Will this tax reform create a repatriation of wealth back to the US?
[9:14] The move that mobilized the GOP forces toward tax reform
[11:11] The 2nd most important thing in the tax plan was the widening of tax brackets and lowering of rates for individuals
[13:21] The standard deducation has been increased, which should increase the number of simple 1040s being filed
[16:22] The single largest revenue raiser in the entire bill
[18:34] The change in mortgage interest deductions could cause a dampening in the high end real estate market
[21:04] The Alternative Minimum Tax isn't gone, but it's gone through an overhaul
[22:55] Pass-through businesses are getting a 20% deduction
[29:54] The accelerated bonus depreciation is enormous for real estate investors
[33:26] Changes to the 1031 Exchange rule
[37:29] The carried interest rules have changed as well, impacting the hedge fund managers trading techniques
[39:18] 529 plans (education plans for children) can now be used to pay for private schools
[39:52] Some tax changes that were EXPECTED but didn't end up happening
Fri, 22 December 2017
CI 107 - Rich Dad Advisor Ken McElroy - GOP Tax Plan, Proper Property Management, & Top Investor Mistakes
Jason Hartman interviews Rich Dad Advisor Ken McElroy, who will be speaking at this year's Meet the Masters of Income Property in La Jolla. Ken tells Jason some of the most common mistakes he sees real estate investors make, why you can't just buy real estate any time you like, and some tips on how to do property management the right way.
They also discuss why the American idea of home ownership may be a massive myth, and two critical pieces to your investment success.
[4:44] The two common mistakes Ken sees in real estate investors
[6:47] Real estate is cyclical, so you can't just buy all the time throughout your career
[9:09] Ken's real estate business model
[10:48] Some tips on how to do property management right
[13:29] C class properties look good on paper, but in the long run, better quality properties bring better quality tenants
[20:16] It's important to treat all your residents as your customers
[21:42] Is the idea of home ownership a myth?
[23:55] Population growth and migration are two things critical to investment success
[27:14] The state of the states
Fri, 15 December 2017
CI 106 - Foreign Investment in US Under the Proposed Tax Changes with Ed Mermelstein, Rheem Bell & Mermelstein
Jason Hartman talks with Ed Mermelstein, founding partner of Rheem Bell & Mermelstein LLP, about what the GOP tax plan will likely do to foreign investment in US real estate. Ed describes how foreign investors are CURRENTLY investing in the US, and whether this plan will make the money flow in to the country or go running away to other countries. This impact will have especially large effects on big name markets like New York, San Francisco, and Los Angeles.
[1:43] Will the proposed tax plan make the US real estate market more or less attractive to foreign investors?
[3:58] The typical business designation that foreign investors use
[6:33] Why some changes in deductions will effect investment in big cities like NY, LA, SF
[9:39] Which countries some of the major US markets get most of their foreign investment dollars from, and how the investors are using their properties
[13:42] Are any foreign governments buying US real estate?
[16:44] The US is in a sweet spot where European and Asian investors will invest, but it doesn't go overboard because of logistics like time differences and distance
Foreign investment tends to sometimes make the news in a negative manner, but we should also consider the benefits of foreign investment in the United States
Fri, 1 December 2017
CI 105 - Client Case Study with Adam Jackson - Financial Statements for Investing with a Marine Corps Veteran
Jason Hartman is happy to bring one of his clients, Adam Jackson, on to the show to talk about his journey into real estate investing. Adam started buying properties toward the end of 2016, and has subsequently purchased 11 homes in the past year on his quest for financial freedom.
Adam shares what markets he's currently invested in, where he's looking to expand, keeping score with personal financial statements, and keeping a healthy balance.
[1:47] Who is Adam Jackson?
[7:26] Where Adam bought his first property, and why
[9:36] Why Adam chose to buy a home with cash
[17:26] When you suffer through an expensive repair, remember that your loss is shared by the government on your tax return
[20:03] How to keep score via financial statements
[24:57] The P vs PC Balance
[28:03] Adam's attempt at the abundance mentality and trying to pass along whatever wisdom/money/time he can
[31:44] Focusing on a few things in-depth is better than a little bit of everything
Fri, 24 November 2017
We've all heard about crowdfunding sites like GoFundMe, KickStarter, and IndieGoGo. Now, however, there's crowdfunding for real estate deals, and AlphaFlow is one of the leaders in the industry.
Jason Hartman talks with Ray Sturm, co-founder and CEO of AlphaFlow, about how it all works, what kinds of deals AlphaFlow is interested in, and why some deals just don't work.
[1:59] What AlphaFlow is and how it works
[3:58] The regulations AlphaFlow has to follow
[6:43] In real estate crowdfunding you have to commit early
[10:47] Why AlphaFlow sticks with residential real estate
[13:58] The interest rates that borrowers are paying and how the loan breakdown works
[16:33] AlphaFlow stays away from refinancing deals
Sun, 12 November 2017
The SEC has a whole lot of rules about fundraising for specific ventures, both about WHO you can pursue and HOW you can pursue them. Jason Hartman talks with Amy Wan, Esq, founder (& Chief Legal Hacker) at Bootstrap Legal, about ways to hack the SEC when raising funds.
[2:41] The primitive nature of law and why it doesn't advance very much
[6:43] What the SEC actually cares about when you raise money for securities
"Raising money is an art and not a science"
[10:18] How the Jobs Act changed the investors you can target and how
[16:53] The price structure of Bootstrap Legal
[21:03] Raising money isn't just putting something up on a website and waiting for the money to flow in
Fri, 3 November 2017
Vinney Chopra came into the United States with $7 in his pockets, and a work ethic to take him far in life. From selling encyclopedias door to door for 80 hours a week to now buying $25+ million apartment complexes, Vinney hasn't let anything stand in his way.
Listen in as Vinney tells Jason Hartman the story of his immigration, and how his investment career has unfolded.
[1:40] Vinney's immigration story
[4:31] Vinney first started earning his money by selling encyclopedias door to door
[8:18] The first home Vinney bought, and when he got into the rental property business
[11:53] Transitioning from single family homes to multifamily
[15:03] There are things you can do with multifamily investments that don't make sense for single family
[19:22] Portability has become the new norm for residents of apartments and single family homes
Fri, 27 October 2017
Jason Hartman talks with Bob Sutton, author of The A**hole Survival Guide: How to Deal with People Who Treat You Like Dirt, about how to deal with people who are a consistently bear and you can't avoid completely.
Sutton studies organizational change, leadership, innovation, and workplace dynamics. He has published over 150 articles and chapters in peer-reviewed journals, management outlets such as Harvard Business Review and the McKinsey Quarterly, and news outlets including The New York Times, Financial Times, and Wall Street Journal. His books include Weird Ideas That Work, The Knowing-Doing Gap (with Jeffrey Pfeffer), and Hard Facts, Dangerous Half-Truths, and Total Nonsense (with Jeffrey Pfeffer).
[1:33] The reaction Robert got from his first book on "jerks"
[5:20] Some people seem to enjoy being mean down to their core, what does Robert make of the idea that women are attracted to bad boys like that?
[8:51] The "rhythm method" of dealing with jerks
[12:20] How you can pick the right time to fight back against jerks
[16:27] We're all slow to notice our own weaknesses
Fri, 20 October 2017
Investment Counselor and Local Market Specialist Liaison, Carrie joins Jason Hartman to see if he can correctly predict the effect the rise in interest rates will have on the US economy. Jason reminds us the Feds don’t directly impact mortgage rates but by directly impacting short-term rates all rates will be affected. For those of you who have income properties, the higher interest rates will put upward pressure on rents. And if you are looking for additional properties, be sure to get pre-approved for financing before the Oklahoma Property Tour and JHU Live event.
[03:53] What does the spike in interest rates mean for investors?
[10:07] Higher interest rates will put upward pressure on rents and lessen the concentration of wealth.
[14:17] Local Market Specialists and Investment Counselors are always working in the client’s best interest.
[23:41] It’s important to get pre-approved for financing in today’s seller’s market.
[25:10] Jason hints about the location for the next Venture Alliance Mastermind.
"The Fed has weapons it can use to fix the economy and interest rates are one of those weapons."
Fri, 13 October 2017
Jason welcomes client, Clay Slocum to the show. Clay is a millennial who currently has four properties in his real estate portfolio. Before buying his first property, Clay worked diligently with Oscar, his Investment Counselor, and a Local Market Specialist to play around with the numbers and he discovered his initial investment could grow exponentially. Clay shares his insights on the power of compounding interest, asset protection, and the Memphis market.
[2:33] Compound interest can be a powerful tool against inflation.
[8:15] Engineers take an analytical approach to investing.
[10:25] After 18 years, $100,000 grow to 14 million.
[17:46] Jason explains a Deferred Sales Trust.
[21:42] If you are on the fence about investing talk with an investment counselor.
[32:36] Asset Protection is a complicated subject you should speak with a lawyer about.
[42:01] Resources for tax help.
"Opportunity cost is a cost most people don’t evaluate."
Fri, 6 October 2017
Tyler Sheff, host of The Cash Flow Guys Podcast, invited Jason Hartman on his show to discuss the different market types in the USA, and got some tips on remote managing as well. Jason explains that the stigma behind buying homes sight unseen, as well as self managing properties a thousand miles away, has abated some due to the wonders of technology.
[2:12] What Jason learned when he owned properties in 11 states
[7:08] Whether Tampa is a linear, hybrid, or cyclical market
[11:34] Our brains relation to the number 3 and how it relates to Jason's diversification strategy
[16:13] Jason's experience of beginning to self manage his remote properties
[18:46] When tenants are connected directly rather than through a property manager they tend to take care of more things themselves
[23:48] The need for standardized data when evaluating properties
Fri, 29 September 2017
Jason Hartman welcomes Economist Mike Norman to the show to discuss Modern Monetary Theory, or MMT. Mike shares examples of common misconceptions people have of the US monetary system and economy, such as the US debt clock, that inflation equals growth, and how the tax system works. He believes that the US has an unlimited supply of capital and balancing the budget or functioning as a fixed monetary system would accomplish the opposite of what is needed to create growth.
[1:10] Modern Monetary Theory (MMT) explains the value of money.
[4:09] A tax system is required to create demand for money.
[9:01] A fixed monetary system creates cycles of economic depressions and recessions.
[11:23] The US national debt is a summation of what is owned by the US and its constituents.
[18:55] A dollar must be created and pumped into the economy before it can be used to pay a tax debt.
[21:16] The US has an unlimited amount of new capital.
[26:43] There is a difference between inflation and growth.
Fri, 22 September 2017
The month of October brings the 2017 tax season to a close. Jason brings Fernando and Zack on the show to showcase the organizational tools and portfolio management options available through the newly upgraded Property Tracker 2.0.
The Property Tracker software makes creating Schedule E’s, depreciation schedules and other tax forms easy as well as a robust calendar which keeps track of all of your income properties important dates.
[1:14] Fundamentals for organizing and tracking investment properties.
[8:30] Property Tracker produces tax schedules including Schedule E and an up-to-date Schedule of Depreciation.
[12:28] Property Tracker 2.0 has updated proformas with RV ratio evaluations.
[14:54] Clarifying the statement “Every day you have a property you own and don’t sell, you are buying it back from yourself.”
[19:35] Organizational tips for using Property Tracker.
[23:58] Scanning with Optical Character Recognition (OCR) makes you more efficient.
[31:08] Details about the new Amazon Echo contest, the Meet the Master’s event and the upcoming Venture Alliance Mastermind.
[34:50] Free one-hour Property Tracker onboarding session with Zack for Jason Hartman clients.
Fri, 15 September 2017
In 2016 Jason was joined by Harry Dent, from Dent Research, to discuss the tax benefits you can get from moving to a US territory like Puerto Rico, some cyclical markets that are out of control, demographic problems around the world, inflation, and foreign investors in US real estate.
[1:20] Harry's new home in Puerto Rico, and the tax benefits he can receive
[5:18] Vancouver real estate is out of control
[10:31] Japan's biggest problem is a demographic problem
[14:21] Previously Harry had predicted a drop in gold which hasn't happened, does he still believe it's going to go down or was he wrong?
[19:01] In a deflationary environment the only chance you have to make money is in yield, which can be found in linear markets with cash flowing properties
[24:22] Most foreign real estate investors are legally laundering their money out of their country
Fri, 8 September 2017
Elisabeth and Jason finally get back together to talk about what's going on in the world of real estate and inflation right now. They discuss some linear, hybrid, and cyclical markets, as well as the influence of foreign investors in the US real estate landscape.
[1:25] What Jason learned on his 7 week vacation/trip to Europe
[5:27] The patterns of countries like Japan and the importance of demographics
[9:52] Whether "this time it's different" is at all applicable in this cycle, or if it's just wishful thinking before a bubble bursts
[14:01] Donald Trump is loosening the flood gates of money, and how it will effect real estate investing
[19:39] The impact that foreign investment has on US markets
[26:25] A lot of the invisible inflation can be seen is by the rise of self-service
[31:38] We've got to stop viewing minimum wage jobs as careers
Fri, 1 September 2017
Our movements and habits are being tracks more and more with each passing year, and even sometimes days. All of that data can come in quite handy when you're looking to buy commercial real estate. Where are your customers coming from? Where are they going? How long do they spend in your location? This knowledge can be crucial when you're considering purchasing a property.
Donna Salvatore is CEO and Founder of Megalytics, a company designed to take big data and decipher it for real estate investors, both big and small. Donna has worked with SaaS and IT companies for the past 22 years, and previously provided venture equity and debt financing for a decade.
[2:28] Some areas of big data that commercial real estate investors that Megalytics can track
[6:14] Has the retail apocalypse peaked yet?
[10:18] What is the social media score and property management score that Megalytics provides?
[15:29] The explosion in available data and what it looks like going forward
[19:11] Big data isn't just for big commercial real estate investors, landlords of single family homes can use it as well
Fri, 25 August 2017
Jason welcomes Patrick Donohoe of The Wealth Standard Podcast to discuss the dirty details of pensions, insurance policies and Ponzi schemes. Jason describes the difficulties and common mistakes average retail investors make when investing in financial services. And, Pat gives a comprehensive overview of how to make the most of your existing policies in order to invest your money in the most historically-proven asset class, income property.
[1:25] Is the US a giant Ponzi scheme?
[4:31] Understanding the difference between pension benefit plans and contribution plans is essential.
[14:15] The financial service industry preys on retail investors.
[19:49] Harry Markopolos is waiting to capitalize on a market correction.
[26:09] Analyzing the patterns and mistakes of the middle-class investor.
[34:27] The Wealth Standard Podcast focuses on helping individuals understand the comprehensive nature of the economy.
[36:49] Pat explains how policyholders can reduce their risk and get investment money for cash-flow properties.
Fri, 18 August 2017
Technology can make cheating not feel like cheating but technology itself is morally neutral.
Bruce Weinstein Ph.D. is the President and CEO of The Ethics Guy. He is a contributor to Bloomberg Businessweek Management blog and Fortune Magazine’s Leadership Channel online. He became enamored with Plato’s Republic, especially Plato’s allegory of the cave which led him down the path of philosophy. Today, Bruce helps people determine which qualities they should develop for their careers, companies to test the character of possible employees and employees to align their goals with their company’s mission statement and core values. He is the author of several books including Ethical Intelligence: 5 Principles for Untangling Your Toughest Problems at Work and Beyond and The Good Ones: 10 Crucial Qualities of High Character Employees.
[2:19] Bruce was blown away by how dramatic and entertaining philosophy was when reading Plato’s Republic that he decided to make his career in it.
[6:15] Bruce’s opinion about the business world and whether it is it more or less ethical than 20 or 30 years ago?
[10:36] What are the are two approaches to doing ethics in a person’s life?
[15:55] A CEO told 60 minutes last year, businesses hire for competence but fire for character.
[17:55] Bruce’s new book, Ethical Intelligence includes tips for evaluating a person’s character: during an interview.
[23:54] Do large companies value ethics beyond the legal requirements?
[26:12] Successfully multi-tasking at more than one thing at a time is a technology driven myth.
[33:44] Send Bruce Weinstein an email describing what you believe to be the most important quality of an employee is will receive a free audio book.
Fri, 11 August 2017
Bubbles are just a fact of investing. At some time or other, every asset class has been in a bubble. Whether it's the dot-com bubble of the 90s or the housing bubble in the 2000s, booms and busts are commonplace at this point. When they happen you have to make sure you're diversified and prepared for the downturn.
But what happens if it's not just one asset class? What if the bubble is...everything?
Mish Shedlock, economist and investment advisor at SitkaPacific Capital Management, talks with Jason about just this phenomenon, and provides some thoughts on ways you can protect yourself in the middle of this everything bubble.
[3:07] Mish's Rule of Progress
[10:23] The Shiller P/E Ratio Chart and what it says about the market today
[12:08] The Buffett Indicator
[16:03] The Mish Shedlock investing thoughts for right now
[19:41] How asset inflation is leaving investors behind
[24:07] Some real estate price examples on the East coast that show the dangerous bubble we're probably in, and how policies are set up to aid the rich in their wealth creation
Fri, 4 August 2017
CI 88 - The New Depression: How the Paper Money Economy is Breaking Us Down with Richard Duncan, Part 2
Jason and Richard Duncan continue discussing what Richard thinks will happen if the government stops supporting the global bubble, how the government can get back in the black on the spreadsheets, and why today is unique in terms of economic history.
Richard Duncan is Chief Economist at Black Horse Asset Management, the author of The New Depression: The Breakdown of the Paper Money Economy and The Dollar Crisis: Causes, Consequences, Cures. His Macro Watch video series can help individuals to clearly understand how the financial system really works. Mr. Duncan previously held the position of economist for the World Bank and the International Monetary Fund.
[1:00] The rules completely changed when we ditched the gold standard and went to a paper money economy
[10:35] The winners in our new, global economy
[13:16] How governmental policy is driving the global bubble
[16:15] Never in human history have we seen what happens when the economy becomes global and money is printed in this abundance
[21:33] How we can pull our nation out of debt
Fri, 28 July 2017
CI 87 - How the Breakdown of the Current Paper Money Economy Brought on the New Depression with Richard Duncan, Part 1
This week’s episode is an enlightening economic conversation you don’t want to miss. Jason welcomes Richard Duncan back to the show for the first of a two-part conversation about what is driving the economy and which mistakes could catapult the US into a recession.
Richard Duncan is Chief Economist at Black Horse Asset Management, the author of The New Depression: The Breakdown of the Paper Money Economy and The Dollar Crisis: Causes, Consequences, Cures. His Macro Watch video series can help individuals to clearly understand how the financial system really works. Mr. Duncan previously held the position of economist for the World Bank and the International Monetary Fund.
[1:11] Richard Duncan has a unique, insider’s view of world economics and FIAT money.
[6:16] In the US, when credit grows less than 2% the US goes into recession.
[11:27] Creditism is the new Capitalism.
[13:47] Looking back at the policies which saved the world economy in 2008.
[19:45] It’s a very sensitive moment in the economy as the Fed is considering reversing quantitative easing.
[23:37] Globalization has changed the way the economic game is played.
Fri, 21 July 2017
Bubbles abound in the world of investing, and today is no different. Jason welcomes Harry Dent, author of The Sale of a Lifetime, about what's going on today in the stock market, real estate market, political world, and worldwide economic statuses. Harry points out what nation in Europe that reminds him of Japan before their massive downturn, and gives Jason a rundown of what to look for BEFORE you see a bubble burst.
The two look at what you might actually want to be investing in when the bubble bursts.
[4:47] The massive bubble that is Chinese real estate
[12:51] Why Harry studies 80-250 year cycles when the world is rapidly changing today
[15:36] Examining the Trump rally
[24:07] Why Jason hates the Case Shiller Index
[28:19] The phases of a housing crash
Sat, 15 July 2017
Jason Hartman welcomes William Cohan, New York Times columnist, special correspondent for Vanity Fair, former contributor to Bloomberg View, and author books such as Why Wall Street Matters, The Last Tycoons, and House of Cards.
William tells Jason his views on the Trump administration, why Donald has had a hard time draining the swamp and who really is to thank for the low unemployment rate and the steady economy.
[1:13] The Trump administration, leverage and cleaning out the gears of the machine that is the US economy.
[7:24] A grand bargain with Wall Street would mean revamping much of its incentive system.
[13:40] Draining the swamp is harder to do than it looks.
[13:23] What we should expect out of the economy and employment.
Fri, 7 July 2017
Bob Miller might have started his career as a police officer, but he didn't stop there. He worked his way up to become the longest serving governor in Nevada history, with a mindset of encouraging economic development through environmentally friendly tourism, specifically Las Vegas.
But Vegas wasn't always in Bob's future. Bob's dad was a gaming pioneer, and he steered Bob away from the Vegas experience and pointed him in the direction of legal advocacy. After he graduated from law school and worked his way up to the governorship, Bob used his legal background to help Nevada transition Vegas into the powerhouse of entertainment that it is today.
Jason Hartman and Bob talk about Bob's new book Son of a Gambling Man, and what Vegas was, what it is, and how the law impacted Bob's entire life.
[6:05] Where Bob sees Las Vegas, and the state of Nevada, headed
[11:02] When Vegas changed from a place with cheap food/transportation/hotel rooms to get you to come in and gamble, to a place where it's expensive and has booming business outside of gambling
[16:03] Bob's experience as a lawyer
Fri, 30 June 2017
It might look like a children's book, but Goodnight Obama is more than just that. It's an important reminder that parody is critical in this day and age.
Dr Jerome Corsi is author of Goodnight Obama, and is also head of the Washington, DC News Bureau for Alex Jones and Infowars.com. The two discuss his newest book, as well as what Jerome is expecting out of President Trump, and where we are in the business cycle.
[1:10] Why Jerome wrote Goodnight Obama
[6:41] Are Trump voters going to be pleasantly surprised when they realize what he's doing in office?
[17:30] Trump's version of "infrastructure spending" isn't the usual stuff that liberals think
[21:46] According to the idea of business cycles we're due for a recession. Is it going to hit Trump, will he avoid it, or is the idea of a business cycle outdated?
[24:23] The return of the USA to a carbon based economy
Fri, 16 June 2017
The housing market is always on a pendulum, but where are we now? Self driving cars are going to be changing the dynamics of our society, but are they going to push more people into the city or have more people moving to the suburbs? Jason Hartman and Matt Slepin, President of Terra Search Partners, discuss what is going on in real estate today, and how our changing environment is impacting real estate in the future.
[2:51] Where Matt thinks we are in the business cycle, and whether we've overbuilt apartments
[7:04] The issues going on in the retail and office investment markets, and why apartment investing makes more sense these days
[11:28] The rise of the autonomous vehicles and how they will change the real estate demand equation
[15:44] What does Urban Land Institute do and what issues are being discussed?
[19:37] What Matt has learned in his real estate podcast
[23:06] Two conflicting trends in property management
Fri, 9 June 2017
The Platinum Rule is ready to take the place of the Golden Rule. Don't do unto others as you would have them do unto you, do unto others as they're like done unto them. The rule is key for Dr Tony Alessandra in his quest to help companies turn prospects into promoters. Tony was inducted into the NSA Speakers Hall of Fame in 1985, was selected as one of Speaker.com's Top 5 Sales/Marketing/Customer Service Speakers from 2010-2014.
Tony and Jason Hartman break down how companies can use the Platinum Rule to better their business, and turn your clients into happy marketers who will help you out-market, out-sell, and out-service the competition.
Fri, 2 June 2017
There are new rules in town, as Fannie Mae recently announced. So Jason Hartman called in his lender, Joe, to get a rundown of what exactly has changed. Investors can put 20% down on the first 10 properties purchased, but there are caveats. Once you own the property, however, you have options.
[1:45] Fannie Mae allows borrowers to put 20% down or the first 10 properties.
[3:58] Interest rates are rising so lock the rate on your property rate now.
[8:52] 85-90 days in the maximum time to lock in a rate.
[10:23] Joe explains loan level price adjustments to rate.
[12:37] The Trump administration may replace the head of the Consumer Financial Protection Bureau.
[17:30] The ease or difficulty of qualifying for a loan.
Fri, 26 May 2017
Single-family homes sales rose in January, bringing income property inventory low. During a recent semiar, Jason shared why investing in a single family home as income property is the only logical investment during an inflationary period. And, if the signs are correct, the Trump administration is going to take the U.S/ economy into an inflationary period.
[0:44] Inflation induced debt destruction by way of a mortgage.
[2:51] Jason explains how the government manipulates inflation numbers through hedonic adjustment.
[10:19] The ultimate investing equation.
[17:38] Anything that does not produce income is not an investment.
[19:29] Cash and bonds are destroyed by inflation.
[21:31] The IRS does not account for inflation.
[24:45] During deflationary periods people default on their loans.
[27:08] If you have a corporate job you are paying more taxes than the self-employed.
Fri, 19 May 2017
Frances Donald, Senior Economist at Manulife Asset Management and Chief Economist at John Hancock Financial Services is today's guest. Jason Hartman and Frances discuss consumer, investor, and executive sentiment numbers in the home and job market. While we don't know exactly why the economic is experiencing such a resurgence, Frances does attribute at least some of it to the potential policy changes Trump is looking to bring.
Frances and Jason also discuss pent up real estate demand, and how student loan debt is impacting that.
[1:12] Investor sentiment gives a positive outlook for the US economy
[3:54] Is Trump the cause of the economic forecast?
[5:11] Rising interest rates present a challenge for the housing market
[8:12] Trump is inspiring confidence in companies all across the country
[9:53] Real estate investment is a small part of the total economy
[14:30] There are two true drivers of rental housing
[17:02] The housing and rental markets are not currently in their natural order
[20:41] The importance of demographics in relation to wage growth
There are fewer multipliers to growth from a rental market than there are from a housing market.
Fri, 12 May 2017
Jason Hartman talks with the founder of Rentec Direct, Nathan Miller, as the two seek to help investors self manage their properties with tools such as Rentec Direct. Rentec offers complete solutions including inventory, property management tools, and now exclusive financing with terms you will appreciate. Nathan says Rentec Direct is designed for investors with 2-20 income properties. Tenant screening, automated payments and a property manager access option makes the tool accessible and easy to use.
[1:52] Rentec Direct’s average client is an investor with 2-20 properties.
[3:51] The Rentec tool is designed to make a landlord’s life easier.
[9:01] Tenant screening is via Trans-Union.
[13:58] Rentec PM has the option to open an owner/investors portal and is 20% more.
[18:27] What differentiates Rentec Direct from their competition?
[24:02] Live chat support is available within the program.
“The most important part of renting a home is picking the right tenant.”
Fri, 5 May 2017
Jason Hartman talks with Robert W Wood, Managing Partner of Wood LLP, about some of the ways business owners might be putting themselves at risk when dealing with employees. Robert is a corporate and individual tax attorney who has seen many businesses and people unknowingly commit tax crimes that come back to haunt them. He gives some advice on avoiding some of the more common issues he's seen.
Robert has been ranked by United States Lawyer Rankings as one of the top 6 tax attorneys in the nation.
[1:23] Are offshore accounts a no go nowadays?
[3:45] Inadvertent ways people are breaking tax laws
[4:46] Nearly all IRS criminal cases get started the same way
[7:44] What should you do if the IRS Criminal Division knocks at your door?
[10:09] How lawsuit settlements are handled under tax codes
[12:00] Important tax things to keep in mind when you hire a freelancer
[17:44] Having freelancers and full time employees doing the same job can put you on dicey legal ground
Fri, 28 April 2017
Jason Hartman talks with Nick Sargen, author of Global Shocks: An Investment Guide for Turbulent Markets, about how our economy might be changed with Donald Trump taking over in the White House. Nick is Senior VP and Chief Economist at Fort Washington Investment Advisors. Before that he worked at Morgan Guaranty trust, the Federal Reserve Bank of San Francisco, and the US Department of Treasury.
[1:10] Trump's pro-business stance could change the US economic situation
[4:42] Will more spending mean higher interest rates?
[6:50] There are legitimate concerns about how President Trump will handle the issue of trade
[9:36] Inflation doesn't necessary follow budget deficits
[12:13] Donald Trump, our first real estate president, who will be pro-growth
[15:05] Why Trump's policies have been good for the market
[17:55] A guide to Nick's book, Global Shocks: An Investment Guide to Turbulent Markets
[20:29] How to invest in order to take advangtage of a bubble.
[24:13] The technology sectors role in the current stock market
Fri, 21 April 2017
Jason Hartman talks with FLAG (Foundation for Liberty and American Greatness) founder and Executive Director, Nick Adams. Nick wrote the book The American Boomerang: How the World’s Greatest Turnaround Nation Will Do It Again, which has turned into a best seller. Jason and Nick look at what America needs to do to return to greatness, and whether President Trump could be the man who makes that happen.
[2:11] What would need to happen to create a true American renaissance?
[4:01] Nick read The Art of the Deal at 11 and now proudly supports Trump
[8:00] The Tall Poppy Syndrome does not apply in the US.
[12:32] The 4 areas that America is considered exceptional
[15:51] The only way to really grow the economy is an increase in consumer confidence
[16:50] The keystones of an American economic boomerang
[20:38] What do the next 4 years of President Trump hold?
Fri, 14 April 2017
Jason Hartman talks with Daren Blomquist, Senior VP at ATTOM Data Solutions and the Executive Editor of ATTOM’s award-winning Housing News Report. They examine how our new President, Donald Trump, could influence real estate investing, how the economy might react, and what regulatory environment we'll be investing in.
[1:43] A Trump presidency's impact on real estate investors and our economy
[5:55] Lack of wage growth has caused affordability issues
[8:46] Housing bubbles tend to be created by lower interest rates
[11:33] Housing prices continue escalating while home ownership has dropped to a 50 year low
[15:43] What impact would repealing Dodd-Frank have?
[19:11] ATTOM’s Housing News Report article explains the phenomenon of big banks running away from the mortgage business
[20:16] October 2016 saw a continued increase in foreclosure activity
[24:29] The promised $1 trillion infrastructure investment will help real estate investors.
[25:36] Get the Housing News Report free for a year by emailing firstname.lastname@example.org and mention "Creating Wealth"
Fri, 7 April 2017
CI 71 - Investing in Real Estate Under President Donald Trump with Newmark Grubb Knight Frank's James Kuhn
Jason Hartman talks with James D. Kuhn, President of New York City’s Newmark Grubb Knight Frank commercial real estate advisory firm, to discuss the changes they are expecting to see in the real estate investing landscape under President Trump.
[2:03] President Trump has the ability to make a serious impact on real estate investing
[6:12] Trump's trade policies will create clear winners and losers
[11:19] Education is the clear separator between the middle and lower class job growth
[14:14] Online college should be accessible to all and cheap
[16:14] Finding value as a real estate investor is getting harder
[19:00] When will the Fed make their interest rate move?
[20:42] Real estate is the last great investment opportunity
[23:09] Remember your commandments, thou shall not gamble in real estate investing
Fri, 31 March 2017
CI 70 - Why Real Estate Investors Need to Know How Amazon.com Picks Distribution Center Locations with Julie Benezet
Jason Hartman talks with Julie Benezet, Founder and Managing Principal of Business Growth Consultants and former Director of Global Real Estate at Amazon.com. Julie gives Jason a peek into Amazon's business philosophy and build out plans. She also explains why it can be profitable to understand the motives behind Amazon's movements. Julie is author of the new book The Journey of Not Knowing: How 21st Century Leaders Can Chart a Course Where There is None.
[1:41] Julie details her business planning efforts at Amazon.com.
[6:35] Amazon’s ‘Get Big Fast’ mantra required employees who knew the rules of distribution.
[9:20] How Amazon chose locations for their fulfillment centers.
[12:57] Unpacking Julie’s book to understand the 4 steps required to do business in the 21st century.
[19:39] Julie reviews the 4 steps.
[20:36] Germany was the location of Julie’s defining moment as a leader.
[27:15] Pay attention to your customers!
Fri, 24 March 2017
Dr. Robert Johnson is the President and CEO of American College. He's written Invest with the Fed: Maximizing Your Portfolio Performance by Following Federal Reserve Policy, Strategic Value Investing and the study What to Expect When You’re Electing. Jason Hartman talks with Dr Johnson about thinking long term while investing in the stock market, how the stock market performs when one party holds the Congress and Presidency, and how interest rate fluctuations impact different asset classes.
[3:08] Huge reforms are on the way with the Republican party controlling two branches of the government
[6:34] Invest with the Fed looked at how interest rates impacted asset/equity class performance
[9:22] Stock market growth is higher under Democratic presidents and/or when there's political harmony
[12:00] Long-term perspectives highlight that the economy and the stock market move together.
[14:40] The best strategy for your portfolio
[16:19] How equity REITs perform when interest rates rise
[18:14] Will the cost of small business financing go up under a Trump administration?
[21:00] Is now the time to be a contrarian?
Fri, 17 March 2017
Jason Hartman talks with Ed Conard, economist, and founding partner of Bain Capital, alongside Mitt Romney. Jason and Ed talk about his New York Times Bestselling book Unintended Consequences: Why Everything You’ve Been Told About the Economy is Wrong, along with his soon to be released book, The Upside of Inequality: How Good Intentions Undermine the Middle Class. The two discuss CEO pay, the technology sector, and why regulations tend to hurt companies trying to get started.
[1:28] Ed discusses his time at Bain Capital with Mitt Romney, when they experienced enormous growth.
[3:30] Bain Capital gave clients the opportunity to invest in capital investment and management supervision related opportunities.
[5:07] Bain Capital also provided a higher risk strategy, so they could capitalize on investment opportunities of undervalued assets.
[7:21] The Upside of Inequality tackles the productivity of the American worker
[12:18] The US economy is picking up, and Fortune 400 companies continue to turn over, suggesting companies aren't just negotiating for a bigger piece of the pie
[14:47] People may find it hard to believe, but CEO pay may not be as ludicrous as it appears
[19:36] Compared to other sectors of the economy, tech companies pay less taxes and have much looser regulation
[21:22] Tech sector profitability has been amazing
[22:23] The economy is squeezing the profitability out of most other sectors.
[24:45] The way to grow in today's economic landscape is to have trained talent and the willingness to take a risk
Fri, 10 March 2017
CI 67 - The Franklin Street Real Estate Outlook for the Office, Retail, Industrial, and Multi-Family Sectors with Andrew Wright
Jason Hartman interviews Andrew Wright, CEO and Managing Partner at the commercial real estate firm Franklin Street. Andrew has guided Franklin Street to several awards, including Best Places to Work by the Tampa Bay Times and the Tampa Bay Business Journal.
With a personal involvement in more than $1 billion in real estate and finance transactions, Andrew is also well versed in distressed real estate, having resolved more than $800 million in debt since 2009.
Jason and Andrew discuss the current status of the US real estate market, particularly the multi-family and mixed use sectors.
[1:35] How Trump could impact real estate markets
[4:59] The impact the internet has had on retail centers
[8:31] The changing demand for the warehouse and delivery industries because of the internet
[12:54] Andrew's take on where we currently are on the supply/demand curve
[17:03] Andrew goes market by market and gives the current cap rates he's seeing
[19:08] What types of investments Andrew is excited about today
Fri, 3 March 2017
Jason Hartman talks with Dr Buck Joffrey, a surgeon, entrepreneur, blogger, and real estate investor. Buck has a podcast and a company called Wealth Formula that's designed to help professionals such as doctors and dentists invest their money wisely. He and Jason discuss investing in commercial assets, why professionals might make bad investing decisions, and alternative investments you probably haven't thought of yet.
[1:55] Why Buck thinks doctors might be bad investors
[6:57] Buck's investing beliefs
[9:50] Buck loves real estate, but single family houses aren't his thing
[14:35] Buck's role in putting together his commercial deals
[17:30] Why the deals aren't as good as they used to be
[20:10] The massive hotel deal Buck is involved in Belize, and why he's investing in things like oil and gas drilling
[24:20] Investing in life settlements
Fri, 24 February 2017
Jason Hartman talks with Sandra Navidi, author of the new book Superhubs: How the Financial Elite and their Networks Rule Our World.
Sandra is the founder and CEO of BeyondGlobal, and was formerly an investment banker at Scarsdale Equities, general counsel at Muzinich & Co. and a consultant at Deloitte. Navidi holds a law degree from the University of Cologne School of Law, Germany, and a Master-of-Law Degree in Banking Corporate and Finance law from Fordham University School of Law, USA.
Navidi’s perspective derives from her professional knowledge and experience. Her strategy of “from micro to macro” involves structuring investments, rendering legal services, investment banking, as well as macro-economic analysis.
[1:40] Why Sandra is interested in financial superhubs
[5:55] The dynamics of superhubs are the same as all networks, but vastly more powerful
[9:12] How superhubs actions impact our lives
[14:03] If access to superhubs is possible for a "regular" person
[18:02] How many superhubs are out there
[21:10] How it's possible that some of the biggest figures in the financial world have relatively low net worths
[27:21] If we don't correct our system, it will correct itself, and it might not be pretty
Fri, 17 February 2017
CI 64 - MFS Investment Management's Bob Pozen and Too Big to Save: How to Fix the U.S. Financial System
Jason Hartman and Bob Pozen discuss possible changes in real estate regulations a Trump administration could bring. These changes could help small to medium sized banks and make the biggest banks out there increase the amount they lend.
Bob Pozen is a Senior Lecturer at MIT’s Sloan School of Management, a Senior Research Fellow at the Brookings Institute and former Associate General Counsel for the SEC. Bob has authored two books: Extreme Productivity and Too Big to Save.
[2:11] Legislation that may be changed through banking system while Dodd-Frank is left as is.
[5:50] There has been too much regulation on small to medium sized banks.
[7:33] The problems are Fannie Mae and Freddie Mac are they were never public nor private.
[11:13] The FHA and VA insure 100% of the mortgages made by banks.
[11:55] More money flowing into the real estate market will cause an upward pressure on prices.
[14:46] Home buying increases when rates start to go up but then level out.
[15:28] Pozen was chosen by President Bush to join a bipartisan commission to strengthen Social Security.
[17:00] Security and Exchange Commission has constraints regarding employees working for corporations after their service.
[19:22] Getting to the gist of Bob Pozen’s book Too Big to Fix.
[21:59] Peer-to-Peer lending is pretty much unregulated.
[23:38] As the economy strengthens banks should lend more.
Fri, 27 January 2017
Jason Hartman talks with Dr. Nima Sanandaji, president of the ECEPR. Dr. Sanandaji has written more than a hundred policy papers, and is a Research Fellow at the Center for Policy Studies. He's also co-founder of the Stockholm-based think tank Captus. Nima is the author of the new book: Debunking Utopia, Exposing the Myth of Nordic Socialism.
[2:00] Why the left might want to rethink pointing to the Nordic countries as examples of socialism
[7:50] How the free market reaching Nordic countries in the 19th century changed them, and when that shifted toward the welfare state
[11:30] Who has it better: Nordic people or Nordic Americans?
[15:10] The importance of Nordic countries achieving what they did BEFORE becoming welfare states
[20:20] Why Nima targets the demographic he does
[23:15] Who the welfare state expansion really hurt