Creating Wealth Real Estate Investing & Income Property

Drew, a long-time real estate investor, joins Jason for the introduction portion of today’s podcast to discuss the pitfalls of trying to time the market, bulletproofing your properties and the downside of over-diversification. This episode finishes with a recording of the self-management expert panel of Jason, Fernando and Oliver answering investor’s questions during the most recent Software and Buying Event. If you have questions about moving from a property management service to self-managing your own properties this Q&A session is a must listen. Income property investors get answers to their real-life concerns about self-managing properties.

Key Takeaways:

[3:05] Drew sells commercial printer cartridges on amazon (shameless self-promotion) and invests in real estate.

[6:02] Was it a wise choice to buy a property in San Jose, California in 1986?

[9:57] Real estate can be a forced savings program for people who lack financial discipline.

[12:20] Be sure to have enough money to bulletproof your properties when you first purchase them.

[16:32] Don’t be a speculator, be a cash flow investor.

[22:54] Be careful not to over-diversify your real estate portfolio.  

Self-Management Panel Q&A:

[24:49] Is it difficult to find tenants when self-managing properties?

[27:35] Make sure to take good photos of your properties.

[28:16] What are the best communication tools to use with tenants?

[31:20] How to facilitate move out inspections, handle legal infringements and qualifying for the real estate professional material participation time.

[39:00] These are the questions to ask property managers when vetting them.

Mentioned in This Episode:

Today’s episode of the Creating Wealth Show deals with issues other than business and finance, but guest Lori Ann LaRocco of CNBC joins Jason Hartman to discuss her latest book, Opportunity Knocking: Lessons from Business Leaders. She talks about the pyramid notion of achieving leadership success both in your personal and business life and how important it is to know yourself before you can even hope to expand your potential for success.

Key Takeaways

01.53 – Stocks of the physical merchandise of the Meet the Masters and Creating Wealth Home Study Courses are still available but running low:www.JasonHartman.com/Products

03.24 – Successful leaders in any field all seem to follow a series of seven strategies, starting with something as simple as knowing yourself.

06.46 – Find others who inspire you and then form and follow your own aspirations.

10.33 – Take your idea and stick with it. Even if it’s not always popular, stick with what you know to be right.

16.54 – True passion is much more attractive to an employer or investor because it’s a great motivator.

19.55 – Some levels of the pyramid take longer to achieve, but it’s the culminated effort which brings success.

27.03 – Self-belief is really one of the most important elements here.

28.05 – To find out more information about Lori Ann LaRocco, head to her blog at www.LoriAnnLaRocco.wordpress.com

30.06 – In Lori Ann LaRocco’s earlier book, Thriving in the New Economy, she created the mini biographies of various CEOs to show their reactions and their mistakes in the lead-up to and aftermath of the financial crisis.

Today’s episode of the Creating Wealth Show deals with issues other than business and finance, but guest Lori Ann LaRocco of CNBC joins Jason Hartman to discuss her latest book, Opportunity Knocking: Lessons from Business Leaders. She talks about the pyramid notion of achieving leadership success both in your personal and business life and how important it is to know yourself before you can even hope to expand your potential for success.

Key Takeaways

01.53 – Stocks of the physical merchandise of the Meet the Masters and Creating Wealth Home Study Courses are still available but running low:www.JasonHartman.com/Products

03.24 – Successful leaders in any field all seem to follow a series of seven strategies, starting with something as simple as knowing yourself.

06.46 – Find others who inspire you and then form and follow your own aspirations.

10.33 – Take your idea and stick with it. Even if it’s not always popular, stick with what you know to be right.

16.54 – True passion is much more attractive to an employer or investor because it’s a great motivator.

19.55 – Some levels of the pyramid take longer to achieve, but it’s the culminated effort which brings success.

27.03 – Self-belief is really one of the most important elements here.

28.05 – To find out more information about Lori Ann LaRocco, head to her blog at www.LoriAnnLaRocco.wordpress.com

30.06 – In Lori Ann LaRocco’s earlier book, Thriving in the New Economy, she created the mini biographies of various CEOs to show their reactions and their mistakes in the lead-up to and aftermath of the financial crisis.

Jason, Fernando and Oliver make up today’s expert panel. They are discussing self-management options for your income properties. The experts agree, a great property management company is worth their weight in gold but it is also important to be educated about your self-management options. The panel shares information about companies who use technology to save you time and money through automating tedious tasks, best practices to improve home interiors without spending a fortune and what types of tenants are the best types of tenants to have.

Key Takeaways:

[3:40] Jason and Fernando discuss the flooring options available at an income property expo in Mesa, Arizona.

[9:19] Kwikset Kevo bluetooth locks make it easier for self-management of income properties.

[16:57] Jason recommends adding a little color to the interior walls of your income properties.

Self-Management Panel:

[20:33] Is self-management easier than having a property manager?

[23:27] The road to self-management and maintaining a good relationship with your tenants.  

[28:00] The flat rate fee system makes self-managing properties easier.

[32:47] Property managers are reluctant to take legitimate fees out of a tenant’s security deposit.

[37:06] Ask your property managers to lower their costs if you are realizing the value.

[40:11] Using Cozy makes rent collection and viewing tenant profiles easy.

[44:35] Disintermediation is getting rid of the middle man.  

[49:10] Rently allows tenants to do their own showings with only a credit card.

Mentioned in This Episode:

Jason Hartman

Real Estate Tools

Venture Alliance Mastermind

Jason, Fernando and Oliver make up today’s expert panel. They are discussing self-management options for your income properties. The experts agree, a great property management company is worth their weight in gold but it is also important to be educated about your self-management options. The panel shares information about companies who use technology to save you time and money through automating tedious tasks, best practices to improve home interiors without spending a fortune and what types of tenants are the best types of tenants to have.

Key Takeaways:

[3:40] Jason and Fernando discuss the flooring options available at an income property expo in Mesa, Arizona.

[9:19] Kwikset Kevo bluetooth locks make it easier for self-management of income properties.

[16:57] Jason recommends adding a little color to the interior walls of your income properties.

Self-Management Panel:

[20:33] Is self-management easier than having a property manager?

[23:27] The road to self-management and maintaining a good relationship with your tenants.  

[28:00] The flat rate fee system makes self-managing properties easier.

[32:47] Property managers are reluctant to take legitimate fees out of a tenant’s security deposit.

[37:06] Ask your property managers to lower their costs if you are realizing the value.

[40:11] Using Cozy makes rent collection and viewing tenant profiles easy.

[44:35] Disintermediation is getting rid of the middle man.  

[49:10] Rently allows tenants to do their own showings with only a credit card.

Mentioned in This Episode:

Jason Hartman

Real Estate Tools

Venture Alliance Mastermind

Jason’s guest today, Dave, is a member of a real estate investor Mastermind group. During the last meeting, there was a consensus that two major problems exist with the rehabilitation of properties. Dave shares the two issues and some of the solutions discussed during the Mastermind meeting and feedback from his experience over the last year. Jason recognizes the property supply chain is currently going through a boom cycle. The disparagement between the property supply and demand makes it challenging for local market specialists, real estate investors and for tenants.

Key Takeaways:

[1:20] Real estate investors are seeing spikes in remodeling costs and having difficulty finding good project leaders.

[6:44] The challenges of the local market specialists, the real estate investors and tenants are due to a boom cycle.

[13:10] In the last year, a General Contractor has seen a 30% increase in materials.

[17:34] Increased material costs and missed time frames both reduce profit for real estate investors.

[21:20] Solutions to the problems include automating the process and having an efficient project manager.

[27:23] Real estate investor demand has far exceeded the supply of good inventory.

[28:04] Rehabbing properties has become entirely different than in the past. Current available properties are in worse condition.

Mentioned in This Episode:

Jason Hartman

Hartman Education

Jason’s guest today, Dave, is a member of a real estate investor Mastermind group. During the last meeting, there was a consensus that two major problems exist with the rehabilitation of properties. Dave shares the two issues and some of the solutions discussed during the Mastermind meeting and feedback from his experience over the last year. Jason recognizes the property supply chain is currently going through a boom cycle. The disparagement between the property supply and demand makes it challenging for local market specialists, real estate investors and for tenants.

Key Takeaways:

[1:20] Real estate investors are seeing spikes in remodeling costs and having difficulty finding good project leaders.

[6:44] The challenges of the local market specialists, the real estate investors and tenants are due to a boom cycle.

[13:10] In the last year, a General Contractor has seen a 30% increase in materials.

[17:34] Increased material costs and missed time frames both reduce profit for real estate investors.

[21:20] Solutions to the problems include automating the process and having an efficient project manager.

[27:23] Real estate investor demand has far exceeded the supply of good inventory.

[28:04] Rehabbing properties has become entirely different than in the past. Current available properties are in worse condition.

Mentioned in This Episode:

Jason Hartman

Hartman Education

Catherine McBreen is the President of Millionaire Corner and the author of “Get Rich, Stay Rich, Pass it On: The Wealth-Accumulation Secrets of America’s Richest Families”.

The U.S. is now seeing record numbers of millionaires. McBreen explains the effect stocks have had on this run-up. She recently released a service called “Find an Advisor,” and discusses how it helps people find the best financial advisor for them. She also analyzes investment newsletters in lieu of financial advisors. McBreen finally talks about the effect money has on happiness and marriage relations.

Visit Millionaire Corner at www.millionairecorner.com.

Catherine McBreen is the President of Millionaire Corner and the author of “Get Rich, Stay Rich, Pass it On: The Wealth-Accumulation Secrets of America’s Richest Families”.

The U.S. is now seeing record numbers of millionaires. McBreen explains the effect stocks have had on this run-up. She recently released a service called “Find an Advisor,” and discusses how it helps people find the best financial advisor for them. She also analyzes investment newsletters in lieu of financial advisors. McBreen finally talks about the effect money has on happiness and marriage relations.

Visit Millionaire Corner at www.millionairecorner.com.

If you are interested in growing your retirement money faster, reducing your risk paying less tax this episode is a must listen. You must align your interests with the financial institutions and the central banks as they are most powerful monetary entities in the world. As you build your income property portfolio you need to put your money in a retirement account which allows you to self-direct your funds without paying high taxes or penalties. The Solo 401k is a vehicle you can use to defer taxes and manage as a resource. Guest expert, Jeff Nabers, created the complete Solo 401k and designed an online tool so you can calculate possible risks before making major investment decisions.  

Key Takeaways:

[1:21] Financial institutions and central banks are the most powerful entities the human race has ever known and we should align our interests with them.

[6:50] Using the leverage of your 20% down on a property increases your power by 500%.

[8:35] The Newser Wells Fargo article: Details about the 185 million dollar fine.

[14:38] The Creating Wealth seminar is now part of the package available at Hartman Education.  

Jeff Nabers Guest Interview:

[16:35] The Solo 401k was based on the Pension Protection Act of 2006.

[18:39] The 3 main advantages of a Solo 401k.

[25:32] There are two qualifications which differentiate a Solo 401k from a traditional Roth IRA.  

[30:32] The Solo 401k allows you to invest $18,500 of your self-employment income.

[32:06] The IRS puts real estate investors in two categories one is a business and the other is a dealer.

[34:36] The rules of an IRA are much stricter than the rules of a Solo 401k.