Wed, 29 April 2020
Beware of the invisible tax, inflation. Jason Hartman discusses inflation, poverty, and work-from-home lifestyle and advantages. In these challenging times, what professionals are able to stay optimistic? How are the elites transferring wealth?
In part II of today’s show, Jason interviews Jessica Mah, founder of inDinero. Tune in for pro-tips on loan approval for PPP & EIDL. How can you optimize your time with loan delays, and get ahead of the game? And, don’t forget to prep for the end-game of these loans, will they be forgiven? Follow the rules and we shall see.
[3:15] There are two types of taxation that we are paying: 1) The tax that we see, income tax, sales tax, etc 2) The inflation tax, which destroys the purchasing power of our money
[7:30] People are being driven into poverty in this quarantine, making it very difficult for some to adjust to the work-from-home lifestyle
[13:30] “Tis the set of the sails, And not the gales, Which tell us the way to go.” -Ella Wheeler Wilcox
[16:00] How are the elites transferring wealth?
[19:30] Jessica Mah, founder of inDinero, helping entrepreneurs run better businesses
[20:50] PPP has run out? Only 6% of all applications have been approved by the SBA and funded.
[21:15] The SBA is saying the best option is to use the bank you are already with, although Jessica has seen more success getting a loan through smaller regional banks
[23:15] Have you seen success in getting loans with brokers?
[25:30] Every bank is accepting PPP & EIDL applications even though they’re both on hold due to running out of money
[26:45] How can you be successful at getting your slice of the bailout pie?
[18:30] Pro-Tips: Show your work; have an excel spreadsheet that shows how you came to your figures
[30:30] How difficult is the one-page application?
[31:00] The Magic Question, “What is all of the information you need from me in order for the bank to formally process my loan application and submit it to the SBA?”
[34:00] This loan could be forgiven if properly played out
[38:00] Encouraged to apply for PPP & EIDL, but PPP is the better of the two options for covering big payroll sheets
Fri, 24 April 2020
The big talk right now is that of supply & demand shock. Jason walks us through the current market trends and the developments leading to the inevitable supply/demand shock. Simple at-home lab experiments, like watching the prices change in airline tickets help illustrate this shock at work.
Dan Amerman joins Jason in part II to discuss crisis investing. Dan, the author of Cycles of Crisis and the Containment of Crisis, takes us through his analysis of economic trends and changes due to coronavirus. As well, Dan advises on what we, the entrepreneur, should consider and how to take action, especially concerning advantages from understanding inflation.
[2:00] Proving the non-theoretical practice of supply/demand shock
[4:00] The misery index has high inflation and high unemployment at the same time
[7:30] Ex: Supply/Demand shock with oil companies
[11:00] Dan gives us the macro picture
[12:30] Cycles of Crisis and Containment of Crisis
[18:45] How do you quantify neighborhoods?
[21:00] We live in a way of debt and derivatives, will it be this way forever or does it have to reset at some point?
[22:20] Japanification is a very real scenario for a period of time
[26:00] Major corporations, when compared to the entrepreneur, have access to far lower cost liabilities, in that they can get free or cheap debt (getting paid to borrow or negative interest rates)
[26:40] What action should people be taking now?
[28:30] What’s the way to distinguish inflation in terms of asset price inflation and consumer price inflation?
[30:30] Understanding price inflation (change in the value of money) and asset deflation (a decrease in the value of an asset)
Direct download: CI_1444_Crisis_Investing_Turning_Inflation_Into_Wealth_with_Dan_Amerman.mp3
Category:general -- posted at: 9:00pm EDT
Mon, 20 April 2020
Jason Hartman speaks with Matthew Sullivan, founder & CEO of Quantm Real Estate, about how his company is using blockchain and tokens to help homeowners pull equity out of their homes (whether owner occupied or investments). Matthew uses a few case studies to explain how much money you could extra, what you would owe his company, and how the secondary market works for the equity stake his company receives.
[2:10] Matthew's company allows you to get equity out of your house without taking out another loan with a bank by buying some of the future value of your house
[5:07] Case study: How much can you pull out if you were to have a $100,000 house with a $50,000 mortgage?
[11:22] Why Quantum Real Estate goes through the hassle of creating a REIT and tokenizing them equity share
[16:05] The effective "interest rate" for homeowners who realize their equity
[20:15] Quantum Real Estate revalues their portfolio every 3 months so the secondary market can trade
Sun, 19 April 2020
Jason Hartman talks with Garrett Sutton, Rich Dad Advisor and author of Loopholes of Real Estate, about some recent Supreme Court decisions that will impact your life in a positive way. No matter what you think about the political division in the court, there are some things on which everyone can agree, and that's the case with these two cases. They also discuss the pros and cons of Series LLCs and the Economic Berlin Wall Jason's been lamenting for years.
[1:53] The Supreme Court unanimously cracked down on excessive civil forfeiture
[5:42] Why you should actually CARE about the civil forfeiture decision
[8:35] Another unanimous Supreme Court decision that protects trusts
[14:01] California is trying to create an Economic Berlin Wall to avoid a brain drain
[18:14] There's a new development for Series LLCs
[22:41] There's not a lot of case law for Series LLCs, which can make it a sketchy area
Mon, 6 April 2020
Jason Hartman talks with Hernando De Soto, founder and President of the Institute for Liberty and Democracy and author of The Mystery of Capital:, about the elements of capitalism that are most important and how property rights are absolutely essential. They also discuss the growing sentiment toward socialism in the United States and what impact that could have.
[2:00] The 5 mysteries of capital
[6:50] Capitalism is one of the few (if not only) systems that gives the lower classes a chance against the rich
[13:07] What we do as capitalists does not translate to what we do in politics
[17:53] The issue of equal opportunity for capital has to be addressed for capitalism to regain its popularity
Sun, 5 April 2020
In this 10th episode, Jason Hartman talks with Sharon Lechter, former CEO of Rich Dad & Pay Yourself First and author of Success & Something Greater: Your Magic Key, about her experiences with both the Rich Dad company and the Napoleon Hill Foundation. Sharon provides unique insights into the impact both organizations have had on society today, as well as what she has discovered success means for various people.
[3:31] Napoleon Hill one of the original self-help authors?
[7:46] The different types of success Sharon saw while writing her latest book
[10:07] Why the man who sold the patent for the jet ski for $75,000 doesn't regret it
Sat, 4 April 2020
Jason Hartman talks with Spencer Burleigh, co-founder of www.RentTheBackyard.com. Spencer's company will build a unit on your land, list it online, and split the rental profits with you 50/50 as long as you have an area at least 25' by 20' clear and you live in your home most of the year. Listen in as Jason and Spencer discuss the business model and how you can take advantage of it.
[1:32] What problem is Rent the Backyard addressing?
[6:26] Rent the Backyard is able to create a second dwelling on the property without getting the land rezoned
[11:02] The stigma behind manufactured housing needs to go away, but it also needs to get cheaper
[14:34] The income side of Rent the Backyard's business model
Sat, 4 April 2020
After giving a quick update on his cruise travels, Jason Hartman talks with Taylor St Germain, economic analyst at ITR Economics, about why lower interest rates haven't spurred the higher end housing market. The two also discuss what indicators Taylor looks at to get a gauge on the economy and the impact tariffs have had and may still have yet to come.
[1:21] Are lower interest rates good news for cyclical markets or are they just too overpriced?
[5:48] The rise in wages has helped the economy but it's not changing the overall trend or forecasts
[9:46] Why are housing starts so important?
[14:51] ITR's concerns with the tariffs currently being put in place
[19:07] More tariffs could potentially put us in a recession, so be very careful if we see more coming