Accredited Income Property Investment Specialist (AIPIS)

Crunching the numbers sounds easy enough, but which numbers do you use? National data doesn’t always reflect individual markets and using geographical data isn’t always a telling sign due to widespread changes in Fannie and Freddie’s level of risk. Jason and Daren take a deep dive into analyzing market data and how tagging markets as linear, cyclical and hybrid allow investors to understand good properties based on cash flow and ROI.

Key Takeaways:

[2:20] National data doesn’t always reflect geographic niches

[3:59] RealtyTrac is, at its core, a data company

[6:43] Licensing and re-selling the data to other companies

[8:16] Home sales are at an 8 year high when analyzing 190 markets

[10:38] The homeownership rate helps our clients to analyze markets

[12:30] Analyzing the tax assessor information for rental properties

[14:50] Everything is relative

[18:44] Thinking of real estate markets as linear (boring), cyclical and hybrid

[24:15] A combination of jobs and universities help real estate markets

[28:41] Extend and pretend, or delay and pray markets

[31:24] Market influences are tipping towards introducing additional risk

Mentions:

Hartman Media

RealtyTrac

CoreLogic

Black Night

Quick answers in the lightning round to all of the most important financing questions. We dig in and ask prudent questions of Joe, our financing guru. If you are looking to create your wealth through real estate investments, this is the episode for you. Down and dirty details of what it takes to get the best financing deals and the specifications you need to qualify for up to 20 properties. Expert advice – free of charge!

Key Takeaways:

[2:38] How many companies can one finance at the same time?

[3:16] The first 4 properties financed need 5% down

[4:05] Financing through an LLC

[4:45] One loan, one property with vanilla residential financing

[6:14] Multiple inquiries about your credit score can lower it over time

[7:06] A LLC needs different insurance

[8:10] Is a power of attorney sufficient to close the loan?

[8:51] An attorney is not needed to close the loan

[10:20] A 2-year landlord history – Fannie Mae: No, Freddie Mac: Yes

[11:19] The minimum credit score is 620 for the first 4 properties, 720 for 5-10

[12:14] Cash out refinancing on investment properties

[14:06] You can always finance your primary residence but different guidelines may apply

[14:45] Lenders need 6 months of reserves

[16:26] Offsetting the mortgage payment based on possible rental income

[18:27] Rental income loss

[19:06 Technical refinance or delayed financing

[21:01] 100% replacement cost needed in homeowners’ insurance

[25:01] Do your due diligence but beware of multiple credit checks

Quick answers in the lightning round to all of the most important financing questions. We dig in and ask prudent questions of Joe, our financing guru. If you are looking to create your wealth through real estate investments, this is the episode for you. Down and dirty details of what it takes to get the best financing deals and the specifications you need to qualify for up to 20 properties. Expert advice – free of charge!

Key Takeaways:

[2:38] How many companies can one finance at the same time?

[3:16] The first 4 properties financed need 5% down

[4:05] Financing through an LLC

[4:45] One loan, one property with vanilla residential financing

[6:14] Multiple inquiries about your credit score can lower it over time

[7:06] A LLC needs different insurance

[8:10] Is a power of attorney sufficient to close the loan?

[8:51] An attorney is not needed to close the loan

[10:20] A 2-year landlord history – Fannie Mae: No, Freddie Mac: Yes

[11:19] The minimum credit score is 620 for the first 4 properties, 720 for 5-10

[12:14] Cash out refinancing on investment properties

[14:06] You can always finance your primary residence but different guidelines may apply

[14:45] Lenders need 6 months of reserves

[16:26] Offsetting the mortgage payment based on possible rental income

[18:27] Rental income loss

[19:06 Technical refinance or delayed financing

[21:01] 100% replacement cost needed in homeowners’ insurance

[25:01] Do your due diligence but beware of multiple credit checks

This provocative conversation features best-selling author and Professor Philip Kotler. Professor Kotler’s new book, Confronting Capitalism, looks at the dark side of Capitalism in the U.S. and provides solutions to core areas, which would reverse our troubled economic system. Both Jason and Philip agree that the current government has been hijacked by the modern version of organized crime – better known as Wall Street – and that a smaller, localized government would make for a more efficient system. While Jason and Professor Kotler find difficulty agreeing on every issue, they both recognize the need to preserve the American middle class and the importance of closing tax loopholes.

Key Takeaways:

[2:46] Americans live under two systems: 1) Capitalism, 2) Democracy

[3:28] The supply-side of Capitalism causes the wage/income gap

[6:26] The rich should help reduce poverty

[7:24] Does the Henry Ford wage increase really work?

[9:05] Many low-income workers are on publicly funded programs

[13:52] Factories have moved abroad along with the money

[17:49] 3 investments the U.S. needs to make: 1) Infrastructure, 2) Public schools, 3) Debt

[19:19] Closing tax loopholes – Capital Gains

[22:59] Could entrepreneurs scale businesses in the same manner if taxes were doubled?

[26:48] Big government and big business are inefficient

[28:09] Cities are the engines of growth, not the states

[31:22] Democracy is there to protect citizens both rich and poor

[33:00] Unions – Good or bad?

[34:32] The “Just” index

Mentions:

Hartman Media

Kellogg School of Management

Confronting Capitalism

Citizens United

Patriotic Millionaires

Lou Dobbs Books

[email protected]

This provocative conversation features best-selling author and Professor Philip Kotler. Professor Kotler’s new book, Confronting Capitalism, looks at the dark side of Capitalism in the U.S. and provides solutions to core areas, which would reverse our troubled economic system. Both Jason and Philip agree that the current government has been hijacked by the modern version of organized crime – better known as Wall Street – and that a smaller, localized government would make for a more efficient system. While Jason and Professor Kotler find difficulty agreeing on every issue, they both recognize the need to preserve the American middle class and the importance of closing tax loopholes.

Key Takeaways:

[2:46] Americans live under two systems: 1) Capitalism, 2) Democracy

[3:28] The supply-side of Capitalism causes the wage/income gap

[6:26] The rich should help reduce poverty

[7:24] Does the Henry Ford wage increase really work?

[9:05] Many low-income workers are on publicly funded programs

[13:52] Factories have moved abroad along with the money

[17:49] 3 investments the U.S. needs to make: 1) Infrastructure, 2) Public schools, 3) Debt

[19:19] Closing tax loopholes – Capital Gains 

[22:59] Could entrepreneurs scale businesses in the same manner if taxes were doubled?

[26:48] Big government and big business are inefficient

[28:09] Cities are the engines of growth, not the states

[31:22] Democracy is there to protect citizens both rich and poor

[33:00] Unions – Good or bad?

[34:32] The “Just” index

Mentions:

Hartman Media

Kellogg School of Management

Confronting Capitalism

Citizens United

Patriotic Millionaires

Lou Dobbs Books

[email protected]

Many people believe the key to winning at chess is the number of moves the player is able to see in advance, but the masters will tell you it is not the case. The key to winning at chess and investing is constantly re-evaluating the moves you anticipate making. If you are truly interested in improving your financial portfolio, you should be ingesting every piece of free financial information available to you. Amateurs at both chess and investing can win by making small, incremental changes to their knowledge-base and income level.

Key Takeaways:

[2:58] One piece of good advice can help you win the game

[6:34] Constantly re-evaluating your portfolio is more important than thinking about future moves

[8:25] Don’t make a move with your money if you don’t have to make a move

[10:06] Behavioral finance - People get overconfident in their decision-making abilities

[14:00] Any investment without income is a speculation

[15:14] Small advantages are worth the risk

[20:43] What exactly are Zero Coupon Bonds?

[23:01] Physical securities need to be validated before selling

[24:10] Take advantage of every free piece of information available

Mentions:

Rich as a King

@richasaking

Thinking Fast and Slow

JasonHartman.com

Many people believe the key to winning at chess is the number of moves the player is able to see in advance, but the masters will tell you it is not the case. The key to winning at chess and investing is constantly re-evaluating the moves you anticipate making. If you are truly interested in improving your financial portfolio, you should be ingesting every piece of free financial information available to you. Amateurs at both chess and investing can win by making small, incremental changes to their knowledge-base and income level.

Key Takeaways:

[2:58] One piece of good advice can help you win the game

[6:34] Constantly re-evaluating your portfolio is more important than thinking about future moves

[8:25] Don’t make a move with your money if you don’t have to make a move

[10:06] Behavioral finance - People get overconfident in their decision-making abilities

[14:00] Any investment without income is a speculation

[15:14] Small advantages are worth the risk

[20:43] What exactly are Zero Coupon Bonds?

[23:01] Physical securities need to be validated before selling

[24:10] Take advantage of every free piece of information available

Mentions:

Rich as a King

@richasaking

Thinking Fast and Slow

JasonHartman.com

Finally detailed information on self-directed savings plans. This episode contains information on the costs to set-up and administer a solo 401(k), traditional and Roth IRAs and an HSA (Health Savings Account). Edwin Kelly of Specialized IRA Services also shares tips and tricks for managing your savings account while building your personal wealth. He cites two examples of new investors who were able to gain wealth for their retirement in a short period of time.

Key Takeaways:

[5:13] What is the difference between a custodian and an administrator?

[8:57] Success in self-directed IRAs requires a customized approach

[12:26] Self-directed IRAs offer sufficient passive income in a short period of time

[13:45] Typical Americans can double their monthly retirement income

[18:30] Additional benefits of traditional and Roth 401(k)s

[23:01] How expensive is it to open up a solo k or a self-directed IRA?

[26:50] The HSA marries tax benefits of both the traditional IRA as well as the Roth IRA

[34:17] Invest in real estate for a cash flow machine that funds your HSA

[35:56] How easy are investment plans to administer?

[36:37] Should an investor add an LLC in an IRA?

Mentions:

JasonHartman.com

Specialized IRA Services

Finally detailed information on self-directed savings plans. This episode contains information on the costs to set-up and administer a solo 401(k), traditional and Roth IRAs and an HSA (Health Savings Account). Edwin Kelly of Specialized IRA Services also shares tips and tricks for managing your savings account while building your personal wealth. He cites two examples of new investors who were able to gain wealth for their retirement in a short period of time.

Key Takeaways:

[5:13] What is the difference between a custodian and an administrator?

[8:57] Success in self-directed IRAs requires a customized approach

[12:26] Self-directed IRAs offer sufficient passive income in a short period of time

[13:45] Typical Americans can double their monthly retirement income

[18:30] Additional benefits of traditional and Roth 401(k)s

[23:01] How expensive is it to open up a solo k or a self-directed IRA?

[26:50] The HSA marries tax benefits of both the traditional IRA as well as the Roth IRA

[34:17] Invest in real estate for a cash flow machine that funds your HSA

[35:56] How easy are investment plans to administer?

[36:37] Should an investor add an LLC in an IRA?

Mentions:

JasonHartman.com

Specialized IRA Services

Mark Kohler CPA just completed his third book and offers us 28 tips for tax planning and asset protection. He gives us insider information about S-corps, LLC’s and Obamacare. He wants everyone to have an exit plan for their life through a versatile revocable living trust because as much as you may not want to admit it we are all mortal. Knowing your properties and finding a balance of diversification and protection is a key component to smart real estate investing.

Key Takeaways:

[2:13] 28 game changing strategies for tax and asset protection

[3:54] 3 Tips for planning

[4:55] Know the difference between ordinary income and passive income

[9:10] The 3 costs related to Obamacare

[10:32] Income property is a proven tax-favored asset class

[11:00] Healthcare strategies

[11:52] The solution is the S corporation for multiple sources of income

[13:25] LLC do not save taxes

[14:10] The Kohler Payroll Matrix

[15:46] You do not need an LLC for every rental

[17:33] Know your properties and find a balance

[19:10] Register as a foreign LLC in every state that you have property

[21:53] Don’t forget about the legal and tax planning that needs to be done

[22:20] How do these things fit into your estate plan?

[23:02] Revocable Living Trust

[27:07] A real life “Do not resuscitate” experience

Mentions:

Lawyers are Liars

The Tax and Legal Playbook

MarkJKohler.com