Creating Wealth Real Estate Investing & Income Property

Jason Hartman and in-house economist Thomas get together at the beginning of today's show to discuss the expected economic impact of numerous states and local municipalities increasing their minimum wage this year, as well as why retail numbers are not coming in well this year.

Then Jason talks with Tom Wheelwright, 2019 Meet the Masters speaker and Rich Dad Advisor, about how to help yourself in your legal tax avoidance using practices such as real estate professional, whether Opportunity Zones might be worth investing in, and why taxes tend to be higher when you retire.

Key Takeaways:

[3:07] The minimum wage will be increasing in a lot of places around the country in 2019. How much effect does it really have?

[7:39] Retail numbers for the start of 2019 are not good, what should we be attributing that to?

Tom Wheelwright Interview:

[13:14] The question you need to ask yourself if you can't qualify to be a real estate professional

[17:18] One of the most underutilized assets people have is other people's tax brackets

[19:06] Tom's views on Opportunity Zones

[23:14] The pass through tax deduction and how it applies to real estate investors

[27:18] Being a real estate professional can sometimes mean you can take early withdrawls from an IRA and actually completely negate the penalties

[30:25] You tend to lose a lot of deductions when you retire, so your planning leading in to retirement is crucial

[31:59] The 2 challenges with Roth IRAs when it comes to investing

Website:

www.WealthAbility.com

Jason Hartman starts off today with a look at ways that the government is trying to control capital by questioning transactions like his recent purchase of his home. Now they're requiring certain purchases by LLCs and Corporations to list their owners in a registry, which could serious harm your anonymity when protecting your assets.

Then Jason finishes his interview with Dan Amerman, CFA and author of books such as Mortgage Securities and Collateralized Mortgage Obligations: Unlock The Secrets Of Mortgage Derivatives, about the correlation between Fed actions and yield curves, how to look at inflation and self-liquidating debt.

Key Takeaways:

[3:50] There's a lot of capital control going on today

[7:52] 1984 and Brave New World are coming truer and truer

[11:58] Musical entertainment for Meet the Masters is about to be booked

Dan Amerman, Part 2

[18:29] Certain Fed actions and yield curve inversions seem to have a correlation

[22:03] The 2 ways to look at inflation

[25:25] The self-liquidating debt

Website:

www.DanielAmerman.com

Jason Hartman begins the show with his in-house economist Thomas discussing two differing population models: the UN population model and the Empty Planet model. Our world is currently entering a population phase previously unseen and it could have a serious impact on our world.

Then Jason begins his interview with Dan Amerman, CFA and author of books such as Mortgage Securities and Collateralized Mortgage Obligations: Unlock The Secrets Of Mortgage Derivatives, about how a heavy handed Fed has changed how inflation and housing have correlate to each other, why the Fed reacts to quickly, and what the Fed is setting interest rates up to do.

Key Takeaways:

[4:55] The UN Population model vs the Empty Planet model

[8:46] We're entering Stage 5 of the demographic transition theory, which is something nobody's really ever seen before

[13:22] Jason's most recent book suggestion

[15:33] What does this coming population shift mean to investors?

Dan Amerman Interview:

[20:44] The Federal Reserve is getting more heavy handed as years go by, and hints of a coming recession could lead to more intervention

[25:38] Housing tracked inflation better than gold until the Federal Reserve got real heavy handed after 2001

[30:27] The Fed reacts too quickly to things

[32:06] Dan's prediction of where interest rates are about to head

Website:

www.DanielAmerman.com

Today's Flash Back Friday comes from Episode 292, originally published in December 2012.

Jason Hartman talks with a listener about local vs. long distance real estate investing and how geography is less meaningful than ever before in history.  Then today’s guest is loan manager, stock trader and financial columnist, Logan Mohtashami with a no-spin discussion on the fiscal cliff and other current events.

Logan Mohtashami is a senior loan officer at his family owned mortgage company AMC Lending Group, which has been providing mortgage services for California residents since 1988. Logan is also a financial columnist for Benzinga.com and contributor for BusinessInsider.com and writes on financial matter relating to the housing market and basic economics.

Website:

www.BusinessInsider.com

In order to celebrate today with a 10th episode, Jason Hartman talks with Richard Marek, former President of EP Dutton, editor of James Baldwin, Robert Ludlum, Peter Straub, Ben Stein and more, about his new book How to Fall In Love: A Novel. There's quite a bit that goes in to falling in love, and Jason and Richard explore what all it entails and how our society is turning its head on the ways that have worked (and will continue to work) since the beginning of time.

Before that, Jason and Adam discuss 2 real estate scams you need to be sure and avoid. The first involves appraisals and the other involves giving up your control.

Key Takeaways:

[6:02] How some providers are using their purchasing power to manipulate sales comps

[9:35] Some turnkey providers want to convince you to only work with them because they're the seller and they have more control, but the control is what causes the problem

[14:04] When the economy turns is when we'll see who the real providers are

Richard Marek Interview:

[17:51] How do you fall in love?

[19:58] Richard doesn't think technology is helping in the love part of relationships today

[23:27] We have an entire generation who's unwilling to even pick up a phone and call someone

[28:34] What are ways we can combat the tech craze?

[30:39] Why is it healthy to fight?

[35:31] Where is the publishing industry headed?

Website:

How to Fall in Love: A Novel

Yesterday, Jason Hartman talked about the number of apartments being built in the US being the highest since the 1980s. Today, Jason and Adam talk about how an immense number of those apartment units are of the high-end variety, and what that might mean for our economy if there's a slowdown.

Then Jason talks with Ryan Barone, CEO & Founder of RentRedi, about his new self-management tool and the benefits it gives to landlords. The two discuss how technology has changed the landscape of investing and who RentRedi is most likely to help.

Key Takeaways:

[2:25] 80% of new apartment construction is high-end

[10:41] Living your life based on the mood of the stock market is no way to live

[15:09] Living off a 4% draw is risky if the market has a downturn

Ryan Barone Interview:

[20:44] What does RentRedi offer to the landlord?

[24:34] Who is the target audience for RentRedi?

[29:40] Technology has changed investing drastically

Website:

www.JasonHartmanUniversity.com

www.RentRedi.com

Jason Hartman begins today's episode with a look at the number of new apartments that were constructed in the USA in 2018. The number is the largest since the 1980s, but does that mean we're overbuilt and what does that mean to single family rentals?

Then, Jason talks with Dr David Collum, Professor at Cornell University, about his 2018 Year in Review report and what he's expecting in 2019. The two tackle the skewed CPI numbers, the impact of stock buybacks and how the next unwinding in our economy is going to happen.

Key Takeaways:

[3:50] 267,900 apartment units were completed last year, the most since sometime in the 80s

[10:45] How much men and women spend on their partner for Valentine's Day

[12:27] Married home owners are seeking roommates to help pay rent

Dr David Collum Interview:

[17:12] What happened in 2018, economically speaking?

[21:44] CPI numbers started getting skewed in the 1970s

[25:55] Is there any gain from stock buybacks?

[29:37] Ultra low rates allowed institutional investors to come in to the single family housing market

[34:00] How the next unwinding will happen

Websites:

David Collum at Cornell

Jason Hartman talks with NeighborhoodScout's Founder & CEO, Andrew Schiller, about his company's predictions for the hottest appreciating markets in the US for 2019. Andrew lists the top 10 markets expected to appreciate as well as how to identify an area that's poised to make a turnaround.

Key Takeaways:

[7:33] National numbers are all well and good, but they don't really matter near as much as local numbers

[9:03] Some of the hottest forecasted appreciation markets in 2019

[12:45] How big are Census Tracts and Micro Neighborhoods?

[17:05] What factors makes a neighborhood turn around?

[21:10] Property crimes are much less an impediment to property values as violent crime

[26:43] How do you use Neighborhood Scout to figure out if a neighborhood is turning around?

Website:

www.JasonHartman.com/Masters

www.NeighborhoodScout.com

Jason Hartman takes today to discuss the glorious rental demographics that are sticking around from his prediction several years ago that the next 10 years will be great for landlords. Now he's pushing that prediction back for 10 years from now because the demographics are just so good still. With all the possibility out there, however, don't feel the need to rush after the shiny objects out there like "Opportunity Zones". Rather, take your time, do your homework, and make sure it's the right thing for you.

Then Jason talks to his in-house economist Thomas about the World Economic Forum in Davos and what came out of it. Thomas gives his predictions for the next 2-3 years, why some looming deflation might be a good thing, and whether we're in a 4th leg of the Industrial Revolution.

Key Takeaways:

[3:24] The demographics of the rental housing market are nothing short of phenomenal for the next 10 years

[8:28] Hedgefund billionare Seth Claireman issued a dire warning at Davos

Thomas Interview:

[18:37] Thomas sees some deflation coming up and doesn't think it'll be that bad

[22:39] Price discovery happens once we've put all the unused assets to work

[26:12] As long as GDP growth + Inflation is higher than the 10 year note, the economy is okay

[34:07] Are the next 5 years going to give us good or are they bringing bad?

[35:16] We're in the midst of the 4th industrial revolution and things are good

Website:

www.JasonHartman.com/Masters

www.JasonHartman.com/Properties

Today's Flash Back Friday comes from Episode 327, originally published in July 2013.

Jason Hartman is joined by Phil from Dallas who asks Jason about his journey of entrepreneurship. Jason gives his backstory, his path to success and how it was all made possible by living below his income (and making a very good income as a real estate agent while doing it). Phil and Jason also explain how the internet has impacted the entrepreneurship of Americans and one lesson Jason learned from his mother that helped shape his idea of business.

Website:

www.JasonHartman.com/Masters

www.JasonHartman.com/Properties