The Commercial Investing Show

Jason Hartman talks today with Frank Gallinelli, founder and President of Real Data and author of the book What Every Real Estate Investor Needs to Know About Cash Flow & 36 Other Key Financial Measures, about what metrics Frank finds the most important for single family home investors to pay attention to. They also discuss the "holy grail" metric that investors should be using and when you actually SHOULDN'T invest in real estate.

Key Takeaways:

[1:53] What are the core metrics that real estate investors should be looking at?

[6:39] You should try and forecast best case, worst case, and in-between case for your properties

[8:02] What is discounted cash flow?

[10:36] The holy grail metric is still IRR (Internal Rate of Return)

[12:26] A different way to view Return on Equity

[15:59] Is there a time where it doesn't make sense to acquire properties?

[21:44] Education is absolutely vital to being a good investor


Direct download: CI_188_Frank_Gallinelli.mp3
Category:general -- posted at: 12:00pm EDT

Jason Hartman talks with Raghuram Rajan, former Governor of the Reserve Bank of India and former Chief Economist and Director of Research at the International Monetary Fund (IMF), about how community has been weakened, which has allowed competitive markets and governments to get out of balance. They also discuss what jobs will remain after automation takes off even more, mortgage rates and whether we're headed toward inflation or deflation.

Key Takeaways:

[1:41] What the IMF is and how it differs from the World Bank

[6:36] Massive technological change tends to hit an area and hurt before the benefits kick in later

[9:47] After automation comes and takes many of the jobs, there will still be jobs that involve human interaction

[15:07] Is Raghuram seeing inflation, deflation, stagflation or what in the coming years?

[17:50] Are mortgage interest rates artificially low?

[22:34] There's good deflation and bad deflation


The Third Pillar: How Markets and the State Leave the Community Behind

Raghuram Rajan at Chicago Booth School of Business

Direct download: CI_187_Raghuram_Rajan.mp3
Category:general -- posted at: 12:00pm EDT

Jason Hartman talks with Rich Dad Advisor and multifamily property investor Ken McElroy about his recent sale of $300 million worth of property, as well as supply levels of multifamily properties, why Ken is still bullish on real estate and the future of interest rates.

Key Takeaways:

[1:38] Why did Ken choose this time to sell his properties and how did he do it?

[5:57] Cap Rate fails to take appreciation into account

[7:53] Is there an oversupply of multifamily that's causing rents to not grow as quickly?

[11:59] What Ken has learned about his facilities for the 55+ community

[13:47] Why Ken is still bullish on real estate

[17:30] Capital always looks for safety in the US

[21:13] The impact things like ride sharing and autonomous cars are having (and will have) on real estate

[23:56] Ken's take on the future of interest rates


Direct download: CI_186_Ken_McElroy.mp3
Category:general -- posted at: 9:38pm EDT

Jason Hartman talks with Jeff Ferry, Chief Economist at the Coalition for a Prosperous America, about what's going on with the US trade war. Jeff has some ideas on how to close the gap between the US and the rest of the world, but Jason has some questions about whether they would cause inflation. They also look into America's manufacturing sector and why we need to ramp it back up.

Key Takeaways:

[1:33] Jeff's thoughts on the current trade situation

[5:49] One of Jeff's solutions for helping cure the trade imbalance is to reduce the value of the dollar

[9:43] How would devaluing the US economy impact our purchasing goods from other countries and how would it impact the economy at home?

[12:55] You have to have capital formation for a society to create wealth


Direct download: CI_185_Jeff_Ferry.mp3
Category:general -- posted at: 2:11pm EDT