Creating Wealth Real Estate Investing & Income Property

Jason answers questions from his highly-intelligent listener base. Clients inquire about interest rates, the 5-year outlook of rental income real estate and using self-directed IRA money to invest in income properties. Jason shares his strategies and tools on how he formulates his predictions on the multi-dimensional asset class of real estate income property, why he doesn’t like using cap rates for residential property evaluations and accessing the Property Tracker software to project future values.

Key Takeaways:

[2:00] Income property is the most historically proven asset class

[5:45] Listener questions from the Salt Lake City JHU event

[8:04] Predicting interest rates

[9:38] Advantages to the suburban market in a linear market

[12:22] Stress testing your portfolio

[15:44] 3 dimensions of real estate - Values and rental incomes are counter-cyclical

[16:53] Why is income property real estate investing so attractive?

[19:15] Cap rates are not useful metrics for residential income property evaluations

[22:13] Using Self-Directed IRA money for an investment

[24:52] Property Tracking Software to see your properties 10-year projection

[27:35] The next Venture Alliance Mastermind will be on Jekyll Island in Georgia

Mentions:

Jason Hartman

Voxer

Grant’s Interest Rate Observer

If you are using microeconomics to plan for your future you may be ready to sell your assets and buy a “Preppers guide to self-sustainability”. But, if you take a step back and look at the bigger picture of macroeconomics you will see that it’s an amazing time to be alive. Jason’s guest Jawad Mian says “the key is to watch the disruption”. Manufacturing may be at an all time low but the services provided by Silicon Valley and the tech industry will offset any economic loss with growth, just in different terms. The market always corrects itself just differently than people perceive it to. The future is brighter than you might think.

Key Takeaways:

Jason’s Editorial:

[2:02] Jawad is a super interesting guy who spoke to us in Dubai

[4:20] John Naisbitt got me interested in macro trends in the economy

[6:34] Meet the Masters home study course in audio and video from Hartman Education online

[9:09] The Venture Alliance Mastermind is a high-level mastermind for real estate investors

Jawad S. Mian Guest Interview:

[11:21] The Chinese economy is crashing and the Fed will hike the rate at the wrong time

[15:24] The real growth in consumer spending is over 3% and stocks should have a positive year

[19:12] A perfect storm in Dubai, but it doesn’t feel like it’s in the midst of a crisis

[23:12] An example of the rental market in Dubai

[26:50] When central banks accumulate debt the debt becomes a write-off

[31:05] What about technology and unemployment?

[33:25] Contact Jawad or John Mauldin

Mentions:

Jason Hartman

If you are using microeconomics to plan for your future you may be ready to sell your assets and buy a “Preppers guide to self-sustainability”. But, if you take a step back and look at the bigger picture of macroeconomics you will see that it’s an amazing time to be alive. Jason’s guest Jawad Mian says “the key is to watch the disruption”. Manufacturing may be at an all time low but the services provided by Silicon Valley and the tech industry will offset any economic loss with growth, just in different terms. The market always corrects itself just differently than people perceive it to. The future is brighter than you might think.

Key Takeaways:

Jason’s Editorial:

[2:02] Jawad is a super interesting guy who spoke to us in Dubai

[4:20] John Naisbitt got me interested in macro trends in the economy

[6:34] Meet the Masters home study course in audio and video from Hartman Education online

[9:09] The Venture Alliance Mastermind is a high-level mastermind for real estate investors

Jawad S. Mian Guest Interview:

[11:21] The Chinese economy is crashing and the Fed will hike the rate at the wrong time

[15:24] The real growth in consumer spending is over 3% and stocks should have a positive year

[19:12] A perfect storm in Dubai, but it doesn’t feel like it’s in the midst of a crisis

[23:12] An example of the rental market in Dubai

[26:50] When central banks accumulate debt the debt becomes a write-off

[31:05] What about technology and unemployment?

[33:25] Contact Jawad or John Mauldin

Mentions:

Jason Hartman

Jason Hartman is joined on this episode by Greg Farrell, author of Crash of the Titans: Greed, Hubris, The Fall of Merrill Lynch, and the Near Collapse of Bank of America, for a discussion of the economic crash and the resulting bailouts, as well as some of the inside dealings with some of the major banks, such as the buyouts by Bank of America.

Greg explains how these banks that participated in the buyouts grossly underestimated the depth of problems in their own banks and in those they acquired. Greg relates his research on Merrill Lynch’s attempt in the 1980s to become more like Goldman Sachs and other Wall Street banks, which was to their detriment because they lacked the expertise for such business practices, and became involved in and in the middle of many of the scandals of the late ‘80s and early ‘90s. Like CitiGroup, they were in over their head.

Jason and Greg discuss Wall Street in general and then specific financial groups regarding the recklessness and risky businesses, funds, etc, that they entertained to give the impression of higher rates of returns. As the plot unfolded, large bonuses to CEOs and high-producing brokers came into play, which encouraged an all or nothing attitude toward the company and fostered a “me” attitude versus long-term stability of the company. Greg also talks about what he calls the “Charlotte Mafia,” the clash of company cultures.

Greg Farrell is a correspondent for the Financial Times. In January 2009, he broke the news that Merrill Lynch had paid out its 2008 bonuses a month ahead of schedule, in December, even though Merrill was in the process of losing $28 billion for the year, and Bank of America needed an extra $20 billion in taxpayer funds to complete its acquisition of the firm. That story sparked an investigation by New York attorney general Andrew Cuomo.

Greg is a past winner of the American Business Press’s Jesse Neal Award for investigative reporting and a recipient of the Knight-Ba

Jason Hartman is joined on this episode by Greg Farrell, author of Crash of the Titans: Greed, Hubris, The Fall of Merrill Lynch, and the Near Collapse of Bank of America, for a discussion of the economic crash and the resulting bailouts, as well as some of the inside dealings with some of the major banks, such as the buyouts by Bank of America.

Greg explains how these banks that participated in the buyouts grossly underestimated the depth of problems in their own banks and in those they acquired. Greg relates his research on Merrill Lynch’s attempt in the 1980s to become more like Goldman Sachs and other Wall Street banks, which was to their detriment because they lacked the expertise for such business practices, and became involved in and in the middle of many of the scandals of the late ‘80s and early ‘90s. Like CitiGroup, they were in over their head.

Jason and Greg discuss Wall Street in general and then specific financial groups regarding the recklessness and risky businesses, funds, etc, that they entertained to give the impression of higher rates of returns. As the plot unfolded, large bonuses to CEOs and high-producing brokers came into play, which encouraged an all or nothing attitude toward the company and fostered a “me” attitude versus long-term stability of the company. Greg also talks about what he calls the “Charlotte Mafia,” the clash of company cultures.

Greg Farrell is a correspondent for the Financial Times. In January 2009, he broke the news that Merrill Lynch had paid out its 2008 bonuses a month ahead of schedule, in December, even though Merrill was in the process of losing $28 billion for the year, and Bank of America needed an extra $20 billion in taxpayer funds to complete its acquisition of the firm. That story sparked an investigation by New York attorney general Andrew Cuomo.

Greg is a past winner of the American Business Press’s Jesse Neal Award for investigative reporting and a recipient of the Knight-Ba

Average Americans are speaking up and they want a hard ass in the White House. They are tired of the trouble making, intolerant progressive democrats who know nothing of economics. They may be in search of a man similar to Ronald Reagan, like Donald Trump. Both former president and possibly future president speak in generalities because it is their job to lead, not to be the experts. Trump will use the American military when it is needed to serve the best interests of the American public. Jason’s guest, Jeffrey Lord says Obama’s presidential leadership is considered weak among international leaders and it is putting America in jeopardy.

Key Takeaways:

Jason’s Editorial:

[1:13] Is Rand Paul too boring to get elected for President?

[4:52] Bernie is in the pocket of big labor unions

[6:15] Your questions answered - Income property, diversification, how to invest capital gains

[17:47] Venture Alliance, JHU Live in Salt Lake and Meet the Masters

Jeffrey Lord Guest Interview:

[20:06] The American left is not very tolerant

[24:42] Ronald Reagan and Trump are different people, but they both make great points

[31:18] CNN offered me a job and they don’t censor me

[33:03] Trump supporters are average Americans

[34:39] Trump talks in generalities and not in specifics

[37:38] Bernie Sanders is not an economist and has no clue about the economy

[39:59] Are the progressive democrats the bad guys?

[45:54] It’s probable Trump will be the republican nominee even after the loss in Iowa

[50:08] Trump would put businessmen in government positions, no more dynasties

[52:35] Re-orienting foreign policy towards natio

Average Americans are speaking up and they want a hard ass in the White House. They are tired of the trouble making, intolerant progressive democrats who know nothing of economics. They may be in search of a man similar to Ronald Reagan, like Donald Trump. Both former president and possibly future president speak in generalities because it is their job to lead, not to be the experts. Trump will use the American military when it is needed to serve the best interests of the American public. Jason’s guest, Jeffrey Lord says Obama’s presidential leadership is considered weak among international leaders and it is putting America in jeopardy.

Key Takeaways:

Jason’s Editorial:

[1:13] Is Rand Paul too boring to get elected for President?

[4:52] Bernie is in the pocket of big labor unions

[6:15] Your questions answered - Income property, diversification, how to invest capital gains

[17:47] Venture Alliance, JHU Live in Salt Lake and Meet the Masters

Jeffrey Lord Guest Interview:

[20:06] The American left is not very tolerant

[24:42] Ronald Reagan and Trump are different people, but they both make great points

[31:18] CNN offered me a job and they don’t censor me

[33:03] Trump supporters are average Americans

[34:39] Trump talks in generalities and not in specifics

[37:38] Bernie Sanders is not an economist and has no clue about the economy

[39:59] Are the progressive democrats the bad guys?

[45:54] It’s probable Trump will be the republican nominee even after the loss in Iowa

[50:08] Trump would put businessmen in government positions, no more dynasties

[52:35] Re-orienting foreign policy towards natio

Dick Cheney has been vilified more than any other Vice President in US history. His former employer, Halliburton, has been accused of misdoings and profiting from the Iraq war after the attack on the World Trade Center towers. Jason’s guest, James Rosen from Fox News says Cheney is a deeply analytical person who has studiedUS history in search of clues from the past which may lead us into a brighter future. He says Cheney is to be admired for his running of the federal government directly after the 9/11 crisis. He promotes the buying of his book “Cheney One on One” to gain a deeper understanding of the man who ruled the free world for a few minutes from an underground bunker in 2001.

Key Takeaways:

Jason’s Editorial:

[5:14] Watch the video “How to analyze real estate investments and read a performa.”

[9:39] Jason answers listener questions about depreciation and appreciation

[15:38] Know how to keep score as an investor

[18:42] LTI ration - Land to Improvement Ratio

[20:45] Remember the Salt Lake City event is on March 12th. Join us for JHU Live!

James Rosen Guest Interview:

[21:58] 10 Hours of interviewing the most controversial VP in the US

[25:49] Cheney opened up about his spiritual beliefs through the years

[29:04] In Cheney One on One, Dick Cheney discusses 9/11

[32:11] What does Dick Cheney think about recent disruptive events?

[33:37] Statistics are manipulated

[36:54] Syria and the Israelis

[40:19] Buy the book and learn how Cheney’s mind works

[41:00] Contact information for James Rosen

Mentions:

Dick Cheney has been vilified more than any other Vice President in US history. His former employer, Halliburton, has been accused of misdoings and profiting from the Iraq war after the attack on the World Trade Center towers. Jason’s guest, James Rosen from Fox News says Cheney is a deeply analytical person who has studiedUS history in search of clues from the past which may lead us into a brighter future. He says Cheney is to be admired for his running of the federal government directly after the 9/11 crisis. He promotes the buying of his book “Cheney One on One” to gain a deeper understanding of the man who ruled the free world for a few minutes from an underground bunker in 2001.

Key Takeaways:

Jason’s Editorial:

[5:14] Watch the video “How to analyze real estate investments and read a performa.”

[9:39] Jason answers listener questions about depreciation and appreciation

[15:38] Know how to keep score as an investor

[18:42] LTI ration - Land to Improvement Ratio

[20:45] Remember the Salt Lake City event is on March 12th. Join us for JHU Live!

James Rosen Guest Interview:

[21:58] 10 Hours of interviewing the most controversial VP in the US

[25:49] Cheney opened up about his spiritual beliefs through the years

[29:04] In Cheney One on One, Dick Cheney discusses 9/11

[32:11] What does Dick Cheney think about recent disruptive events?

[33:37] Statistics are manipulated

[36:54] Syria and the Israelis

[40:19] Buy the book and learn how Cheney’s mind works

[41:00] Contact information for James Rosen

Mentions:

Join Jason Hartman and MC Company Principal and Co-Partner, as well as the Real Estate Adviser of Robert Kiyosaki, Ken McElroy, in this insightful discussion about real estate investing, inflation, and the effect of today’s economy on the rental markets. Both Ken and Jason learned the power of leverage to hedge against inflation, and in this episode, they share their combined knowledge with the listeners. Ken feels that investing in real estate and watching the dollar, mortgage rates, and inflation are lifelong endeavors and it’s important to stay on top of those things. He also shares why he prefers apartments over residential investments, expressing it allows greater control over the financial outcome of the asset.

Ken talks about the pent up demand of Gen Y’ers, who currently are forced to live at home due to scarcity of jobs, but who will eventually flow into the rental market if and when jobs are created and the economy begins to improve. Jason and Ken also share their similar knowledge regarding macro- and micro-markets, the importance of researching job markets, employment rates, population, schools, etc. “At the end of the day, it’s all about demographics,” Ken says.

Ken McElroy has over 20 years of experience in multifamily asset/property management, development, project/construction management, investment analysis, acquisitions and dispositions, business development, and client relations. With his years of experience and knowledge, Ken has a unique property management perspective. Ken authored the best-selling book, The ABCs of Real Estate Investing; The Advanced Guide to Real Estate Investing; The ABC’s of Property Management; and his most recent book, The Sleeping Giant. Ken, as the Real Estate Advisor to The Rich Dad Company, has also co-authored with Robert Kiyosaki several audio programs, including “How to Increase the Income from Your Real Estate Investments;” “How to Get Your Banker to Say ‘Yes!’;” and “How to Find and Keep Good Ten