Creating Wealth Real Estate Investing with Jason Hartman

Jason's guest, Michael Thomsett has over 35-years as an Accountant and is an investor in the most tax-favored asset class in the U.S., income properties. Mr. Thomsett has written over 90 books. His book, The Landlord's Financial Toolkit will soon be printed as a second edition and re-named The Real Estate Investor's Financial Toolkit. During today's episode, he shares ten principles of real estate evaluations and unpacks each principle, so even those with a limited understanding of income property investing can follow along.

Key Takeaways:

[1:29] Segmenting the real estate market is rarely done properly.

[3:28] Make it a goal to live in a no income tax state as a wealth creation strategy.

[6:44] Information on the next Meet the Masters, Hartman Education Special Bundles and available properties.

Michael Thomsett Guest Interview:

[11:46] The 9/10 Principles of Real Estate Evaluation.

[12:54] Defining the Principles of Progression and Regression.

[14:09] The Principle of Conformity is keeping the features of a property in line with others in the area.

[15:11] The Principle of Substitution relates to the condition of the property.

[15:45] The Principle of Change applies to the economy, demographics, employment, and other "fact of life" incidents.

[16:46] The Evaluation Principle of anticipation is when expectations about future events affect the market value.

[20:24] The Contribution Principle - If the improvement is worth more than the cost to make it.

[21:46] Plottage or Growth Management should be consistent use of the surrounding lands.

[24:26] Highest and Best Use - Real Estate evaluations are best when land is utilized in the best possible way.

[26:13] The Competition Principle states an opportunity for a profitable investment leads to competition.

[31:47] All the necessary tools for landlords are included in the second edition of Michael Thomsett's book.

Mentioned in This Episode:

Jason Hartman

Hartman Education

Thomsett Publishing

Survive and thrive in today's economy! With over 400 episodes produced, business and investment guru Jason Hartman interviews top-tier guests, bestselling authors and financial experts including; Steve Forbes (Freedom Manifesto), Tomas Sowell (Housing Boom and Bust), Noam Chomsky (Manufacturing Consent), Jenny Craig (Health & Fitness CEO), Jim Cramer (Mad Money), Harvey Mackay (Swim With The Sharks & Get Your Foot in the Door), Todd Akin (Former US Congressman), William D. Cohan ( The Price of Silence, The Last Tycoon, & House of Cards), G. Edward Griffin (The Creature from Jekyll Island), Daniel Pink (National Geographic). Jason Hartman is the Founder and CEO of Platinum Properties Investor Network, The Hartman Media Company, and The Jason Hartman Foundation. Starting with very little, Jason, while still in college at the age of 19, embarked on a career in real estate while brokering properties for clients, he was investing in he own portfolio along the way. Through creativity, persistence and hard work, he soon joined the ranks of the top one-percent of Realtors in the U.S. and in quick succession; earned a number of prestigious industry awards and became a young multi-millionaire. Jason purchased an Irvine, California real estate brokerage firm which he expanded dramatically and was later acquired by Coldwell Banker. He combined his dedication and business talents to become a successful entrepreneur, public speaker, author, and media personality. Over the years he developed his Complete Solution for Real Estate Investors™ where his innovative firm educates and assists investors in acquiring prudent investments nationwide for their portfolio. Jason’s highly sought after educational events, speaking engagements, and his ultra-hot “Creating Wealth Podcast” inspire and empower hundreds of thousands of people in 26 countries worldwide. Additional guests featured on the Creating Wealth podcast include Robert Kiyosaki (RIch Dad Poor Dad), Matthew Quirk (The 500 & The Directive), Eve Wright (Life at the Speed of Passion), John Lawrence Allen (Make Wall Street Pay You Back), Jerry Robinson (Bankruptcy in Our Nation), Peter Zeihan (The Accidental Superpower), David Crowe (National Association of Homebuilders NAHB), Consuelo Mack (PBS - Wealth Track), Sean Haugh (Libertarian Candidate for the US Senate), Scott Paul (Alliance for American Manufacturing), Charles Goyette (Ron Paul's America Show), Chris Martenson (Crash Course), Matt Theriault (Epic Real Estate Investing), Christopher Barnatt (The Future of 3D Printing), Zac Bissonnette (Good Advice From Bad People), Rich Karlgaard (Forbes Magazine). Chris Mayer (Agora Financial), Craig R. Smith (The Great Withdrawal), Po Bronson (The Science of Winning & Losing), Jim Stossel (Why Government Fails), John McAfee (Founder of McAfee Anti-Virus Software) Harry Dent (The Great Depression Ahead), Kevin Armstrong (Bulls, Birdies, Bogeys, and Bears), Nick Bilton (Hatching Twitter), Tom Kreautler (The Money Pit), Doug Brunt (Ghosts of Manhattan), Catherine McBreen (Get Rich, Stay Rich, Pass it On), Les Leopold (How to Make a Million Dollars an Hour), Robert Greene (Mastery, Power, & Seduction), Byron Dorgan (Gridlock), Dennis Miller (Retirement Reboot), George Gilder (Knowledge & Power), Jed Kolko (Tulia), Dr. Judith Wright (The Soft Addiction Solution), Richard Duncan (The New Depression), Dave Krieger (Clouded Titles), Bill Ayers (Confessions of an American Dissident), Dr. H. Woody Block (American Gridlock), Steven Kotler (Abundance), Laurence Kotlikoff (The Clash of Generations), Greg Farrell (Crash of the Titans), Shaun Rein (The End of Cheap China), Ken Gronbach (The Age Curve), Amity Shlaes (The Forgotten Man), Roger Lowenstein (The End of Wall Street), Jay Elliot (The Steve Jobs Way), Richard Duncan (The Dollar Crisis & The Corruption of Capitalism), Robert Wiedemer (Aftershock), and Steve Slaunwhite (The Wealthy Freelancer). A trademark feature of Hartman Media podcasts are our 'Tenth Ep

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:

Jason Hartman

Venture Alliance Mastermind

Hartman Education

Ink Safari

Cozy

Voxer

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:

Jason Hartman

Venture Alliance Mastermind

Hartman Education

Ink Safari

Cozy

Voxer

Survive and thrive in today's economy! With over 400 episodes produced, business and investment guru Jason Hartman interviews top-tier guests, bestselling authors and financial experts including; Steve Forbes (Freedom Manifesto), Tomas Sowell (Housing Boom and Bust), Noam Chomsky (Manufacturing Consent), Jenny Craig (Health & Fitness CEO), Jim Cramer (Mad Money), Harvey Mackay (Swim With The Sharks & Get Your Foot in the Door), Todd Akin (Former US Congressman), William D. Cohan ( The Price of Silence, The Last Tycoon, & House of Cards), G. Edward Griffin (The Creature from Jekyll Island), Daniel Pink (National Geographic). Jason Hartman is the Founder and CEO of Platinum Properties Investor Network, The Hartman Media Company, and The Jason Hartman Foundation. Starting with very little, Jason, while still in college at the age of 19, embarked on a career in real estate while brokering properties for clients, he was investing in he own portfolio along the way. Through creativity, persistence and hard work, he soon joined the ranks of the top one-percent of Realtors in the U.S. and in quick succession; earned a number of prestigious industry awards and became a young multi-millionaire. Jason purchased an Irvine, California real estate brokerage firm which he expanded dramatically and was later acquired by Coldwell Banker. He combined his dedication and business talents to become a successful entrepreneur, public speaker, author, and media personality. Over the years he developed his Complete Solution for Real Estate Investors™ where his innovative firm educates and assists investors in acquiring prudent investments nationwide for their portfolio. Jason’s highly sought after educational events, speaking engagements, and his ultra-hot “Creating Wealth Podcast” inspire and empower hundreds of thousands of people in 26 countries worldwide. Additional guests featured on the Creating Wealth podcast include Robert Kiyosaki (RIch Dad Poor Dad), Matthew Quirk (The 500 & The Directive), Eve Wright (Life at the Speed of Passion), John Lawrence Allen (Make Wall Street Pay You Back), Jerry Robinson (Bankruptcy in Our Nation), Peter Zeihan (The Accidental Superpower), David Crowe (National Association of Homebuilders NAHB), Consuelo Mack (PBS - Wealth Track), Sean Haugh (Libertarian Candidate for the US Senate), Scott Paul (Alliance for American Manufacturing), Charles Goyette (Ron Paul's America Show), Chris Martenson (Crash Course), Matt Theriault (Epic Real Estate Investing), Christopher Barnatt (The Future of 3D Printing), Zac Bissonnette (Good Advice From Bad People), Rich Karlgaard (Forbes Magazine). Chris Mayer (Agora Financial), Craig R. Smith (The Great Withdrawal), Po Bronson (The Science of Winning & Losing), Jim Stossel (Why Government Fails), John McAfee (Founder of McAfee Anti-Virus Software) Harry Dent (The Great Depression Ahead), Kevin Armstrong (Bulls, Birdies, Bogeys, and Bears), Nick Bilton (Hatching Twitter), Tom Kreautler (The Money Pit), Doug Brunt (Ghosts of Manhattan), Catherine McBreen (Get Rich, Stay Rich, Pass it On), Les Leopold (How to Make a Million Dollars an Hour), Robert Greene (Mastery, Power, & Seduction), Byron Dorgan (Gridlock), Dennis Miller (Retirement Reboot), George Gilder (Knowledge & Power), Jed Kolko (Tulia), Dr. Judith Wright (The Soft Addiction Solution), Richard Duncan (The New Depression), Dave Krieger (Clouded Titles), Bill Ayers (Confessions of an American Dissident), Dr. H. Woody Block (American Gridlock), Steven Kotler (Abundance), Laurence Kotlikoff (The Clash of Generations), Greg Farrell (Crash of the Titans), Shaun Rein (The End of Cheap China), Ken Gronbach (The Age Curve), Amity Shlaes (The Forgotten Man), Roger Lowenstein (The End of Wall Street), Jay Elliot (The Steve Jobs Way), Richard Duncan (The Dollar Crisis & The Corruption of Capitalism), Robert Wiedemer (Aftershock), and Steve Slaunwhite (The Wealthy Freelancer). A trademark feature of Hartman Media podcasts are our 'Tenth Ep

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.

33.55 – The way that these bubbles work is that when you’re in it, you just can’t see it. Even with hindsight, we don’t seem able to learn.

 

Mentioned in this episode

Opportunity Knocking: Lessons from Business Leaders by Lori Ann LaRocco

Thriving in the New Economy by Lori Ann LaRocco

Start with Why: How Great Leaders Inspire Everyone to Take Action by Simon Sinek

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.

33.55 – The way that these bubbles work is that when you're in it, you just can't see it. Even with hindsight, we don't seem able to learn.

Mentioned in this episode

Opportunity Knocking: Lessons from Business Leaders by Lori Ann LaRocco

Thriving in the New Economy by Lori Ann LaRocco

Start with Why: How Great Leaders Inspire Everyone to Take Action by Simon Sinek

Survive and thrive in today's economy! With over 400 episodes produced, business and investment guru Jason Hartman interviews top-tier guests, bestselling authors and financial experts including; Steve Forbes (Freedom Manifesto), Tomas Sowell (Housing Boom and Bust), Noam Chomsky (Manufacturing Consent), Jenny Craig (Health & Fitness CEO), Jim Cramer (Mad Money), Harvey Mackay (Swim With The Sharks & Get Your Foot in the Door), Todd Akin (Former US Congressman), William D. Cohan ( The Price of Silence, The Last Tycoon, & House of Cards), G. Edward Griffin (The Creature from Jekyll Island), Daniel Pink (National Geographic). Jason Hartman is the Founder and CEO of Platinum Properties Investor Network, The Hartman Media Company, and The Jason Hartman Foundation. Starting with very little, Jason, while still in college at the age of 19, embarked on a career in real estate while brokering properties for clients, he was investing in he own portfolio along the way. Through creativity, persistence and hard work, he soon joined the ranks of the top one-percent of Realtors in the U.S. and in quick succession; earned a number of prestigious industry awards and became a young multi-millionaire. Jason purchased an Irvine, California real estate brokerage firm which he expanded dramatically and was later acquired by Coldwell Banker. He combined his dedication and business talents to become a successful entrepreneur, public speaker, author, and media personality. Over the years he developed his Complete Solution for Real Estate Investors™ where his innovative firm educates and assists investors in acquiring prudent investments nationwide for their portfolio. Jason’s highly sought after educational events, speaking engagements, and his ultra-hot “Creating Wealth Podcast” inspire and empower hundreds of thousands of people in 26 countries worldwide. Additional guests featured on the Creating Wealth podcast include Robert Kiyosaki (RIch Dad Poor Dad), Matthew Quirk (The 500 & The Directive), Eve Wright (Life at the Speed of Passion), John Lawrence Allen (Make Wall Street Pay You Back), Jerry Robinson (Bankruptcy in Our Nation), Peter Zeihan (The Accidental Superpower), David Crowe (National Association of Homebuilders NAHB), Consuelo Mack (PBS - Wealth Track), Sean Haugh (Libertarian Candidate for the US Senate), Scott Paul (Alliance for American Manufacturing), Charles Goyette (Ron Paul's America Show), Chris Martenson (Crash Course), Matt Theriault (Epic Real Estate Investing), Christopher Barnatt (The Future of 3D Printing), Zac Bissonnette (Good Advice From Bad People), Rich Karlgaard (Forbes Magazine). Chris Mayer (Agora Financial), Craig R. Smith (The Great Withdrawal), Po Bronson (The Science of Winning & Losing), Jim Stossel (Why Government Fails), John McAfee (Founder of McAfee Anti-Virus Software) Harry Dent (The Great Depression Ahead), Kevin Armstrong (Bulls, Birdies, Bogeys, and Bears), Nick Bilton (Hatching Twitter), Tom Kreautler (The Money Pit), Doug Brunt (Ghosts of Manhattan), Catherine McBreen (Get Rich, Stay Rich, Pass it On), Les Leopold (How to Make a Million Dollars an Hour), Robert Greene (Mastery, Power, & Seduction), Byron Dorgan (Gridlock), Dennis Miller (Retirement Reboot), George Gilder (Knowledge & Power), Jed Kolko (Tulia), Dr. Judith Wright (The Soft Addiction Solution), Richard Duncan (The New Depression), Dave Krieger (Clouded Titles), Bill Ayers (Confessions of an American Dissident), Dr. H. Woody Block (American Gridlock), Steven Kotler (Abundance), Laurence Kotlikoff (The Clash of Generations), Greg Farrell (Crash of the Titans), Shaun Rein (The End of Cheap China), Ken Gronbach (The Age Curve), Amity Shlaes (The Forgotten Man), Roger Lowenstein (The End of Wall Street), Jay Elliot (The Steve Jobs Way), Richard Duncan (The Dollar Crisis & The Corruption of Capitalism), Robert Wiedemer (Aftershock), and Steve Slaunwhite (The Wealthy Freelancer). A trademark feature of Hartman Media podcasts are our 'Tenth Ep

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

Hartman Education

Cozy

Rently

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

Hartman Education

Cozy

Rently