Creating Wealth Real Estate Investing with Jason Hartman

Jason Hartman starts with a discussion about the recent Facebook IPO scandal. Morgan Stanley and the other IPO underwriters gave the bad news to their big clients about Facebook having a bad quarter but didn’t bother to tell their financial advisors and individual clients about this – more bad behavior on Wall Street? Short Bloomberg News clip. What would Eliot Spitzer think of Morgan Stanley CEO James Gorman?

Jason reviews a SWOT Analysis for Investment Property including the following points:

StrengthsCash FlowFragmented Markets & Providers“Push” AppreciationReal AppreciationPhysical, Real AssetWeaknessesRepairsVacancyManagementNatural DisastersMarket ConditionsOpportunitiesInflation-Induced Debt Destruction(TM)Regression to Replacement Cost(TM)Rent IncreasesAcquisition Price Below Replacement CostGen YLow FICO Scores = More RentersFannie MaeThreatsRent CollapsePrice DeflationPopulation Out-MigrationNew Inventory Suppressing Rents

Join Jason and his team for their very first LIVE east coast event! Atlanta Income Property Investment Tour + Education http://www.jasonhartman.com/atlanta-investment-property-tour/. Finally, Jason talks with one of his clients who finances farmland about his growing income property portfolio and outlook on the residential rental property market.

A look at three different tax scenarios. What would you pay if the proposed flat, fair and sales taxes were implemented. Currently with issues such as underreporting of personal business tax, formal renunciations and “workers without papers” paying tax the IRS claims to be billions behind it what it should be collecting. John Gavers current book delves deep into the intricacies of the flat and sales tax programs and his upcoming book will dissect the fair tax and how the economy would be affected if it were to replace the current U.S. tax system. 

Key Takeaways: 

Jason’s Editorial 

[2:00] The age old tax debate 

[3:13] The velocity of money 

[3:54] Candidate Obama eluded to an asset tax 

[4:33] Capital formation means the capital is never really dormant

[6:35] An update on upcoming shows

[7:05] The new VentureAllianceMastermind.com answers all of your questions

John Gaver Guest Interview:

[9:20] The IRS report says the rich are paying too much tax

[10:44] 2300% increase in formal renunciations

[13:33] Is California the new Michigan

[14:55] Does a flat income tax make sense

[17:49] The Reagan reform 2 tax brackets

[19:45] The book is based on IRS total collections 

[20:47] The fair tax taxes “workers without papers”

[23:05] John’s position is …

[26:01] A national retail sales tax would be collected at the state level

[28:35] Consuming a service is considered taxable

[29:34] Buying a used home would be tax free but would anyone buy a new house 

[30:33] My The Tax Deception book will look at the fair tax

[31:31] A flat tax will end up hurting the middle class 

Mentions:

Venture Alliance Mastermind 

JasonHartman.com

The Rich Don’t Pay Tax 

A look at three different tax scenarios. What would you pay if the proposed flat, fair and sales taxes were implemented. Currently with issues such as underreporting of personal business tax, formal renunciations and “workers without papers” paying tax the IRS claims to be billions behind it what it should be collecting. John Gavers current book delves deep into the intricacies of the flat and sales tax programs and his upcoming book will dissect the fair tax and how the economy would be affected if it were to replace the current U.S. tax system.

Key Takeaways:

Jason’s Editorial

[2:00] The age old tax debate

[3:13] The velocity of money

[3:54] Candidate Obama eluded to an asset tax

[4:33] Capital formation means the capital is never really dormant

[6:35] An update on upcoming shows

[7:05] The new VentureAllianceMastermind.com answers all of your questions

John Gaver Guest Interview:

[9:20] The IRS report says the rich are paying too much tax

[10:44] 2300% increase in formal renunciations

[13:33] Is California the new Michigan

[14:55] Does a flat income tax make sense

[17:49] The Reagan reform 2 tax brackets

[19:45] The book is based on IRS total collections

[20:47] The fair tax taxes “workers without papers”

[23:05] John’s position is …

[26:01] A national retail sales tax would be collected at the state level

[28:35] Consuming a service is considered taxable

[29:34] Buying a used home would be tax free but would anyone buy a new house

[30:33] My The Tax Deception book will look at the fair tax

[31:31] A flat tax will end up hurting the middle class

Mentions:

Venture Alliance Mastermind

JasonHartman.com

The Rich Don’t Pay Tax

Orlando is more than Disney, it’s a well rounded city. There are major medical companies investing in the surrounding area. There are also basics to the State of Florida which make it a good place to invest. It offers asset protection, has no income tax for its residents and is pro-business and pro-landlord. This hybrid market is ripe and when the real estate market there corrects itself investment properties will appreciate to their proper values. 

Early Bird pricing is now available for January’s Meet the Masters event in SoCal. 

Key Takeaways:

Jason’s Editorial:

[2:10] An app Jason likes which tells him about the humidity he doesn’t like

[5:15] Meet the Masters event in January 9 & 10, 2016 - save the date 

[6:41] Florida is a no income tax state and it’s asset protection friendly

[7:08] Tampa, Florida may be under rated but the market is too expensive

[8:06] The biggest cities with the highest foreclosure rate 

[9:17] Land contracts in Grand Rapids, Michigan, owning notes means less responsibility

[11:18] Congratulations Russell for developing the life you want! 

[13:01] The 2nd Venture Alliance trip coming up in Newport, Rhode Island 

Orlando Local Market Specialist Interview:

[18:23] Foreclosures allow you to go cash flow positive in Orlando

[19:14] Market basics for achieving cash flow and appreciation

[22:38] Judicial foreclosure states versus non judicial foreclosure states

[23:31] Removing the supply drives the price upwards and eliminates cash flow properties

[25:30] Buying below replacement costs in Orlando 

[26:59] Las Vegas may be a massively over speculated, natural growth was needed

[28:29] Large companies are investing in Orlando 

[30:31] Everybody knows Orlando, Florida - It’s more than Disney

[33:51] Separating the Orlando market from other markets 

[35:48] The right team, great deals are available and it’s landlord friendly

[37:30] Our management team was built for investors by investors

[39:31] Nobody wants an eviction but if it happens our group does it well 

[43:20] Making the right choice in the real estate market - look 10 years in either direction

Mentions:

JasonHartman.com

Dark Sky App

Orlando is more than Disney, it’s a well rounded city. There are major medical companies investing in the surrounding area. There are also basics to the State of Florida which make it a good place to invest. It offers asset protection, has no income tax for its residents and is pro-business and pro-landlord. This hybrid market is ripe and when the real estate market there corrects itself investment properties will appreciate to their proper values.

Early Bird pricing is now available for January’s Meet the Masters event in SoCal.

Key Takeaways:

Jason’s Editorial:

[2:10] An app Jason likes which tells him about the humidity he doesn’t like

[5:15] Meet the Masters event in January 9 & 10, 2016 - save the date

[6:41] Florida is a no income tax state and it’s asset protection friendly

[7:08] Tampa, Florida may be under rated but the market is too expensive

[8:06] The biggest cities with the highest foreclosure rate

[9:17] Land contracts in Grand Rapids, Michigan, owning notes means less responsibility

[11:18] Congratulations Russell for developing the life you want!

[13:01] The 2nd Venture Alliance trip coming up in Newport, Rhode Island

Orlando Local Market Specialist Interview:

[18:23] Foreclosures allow you to go cash flow positive in Orlando

[19:14] Market basics for achieving cash flow and appreciation

[22:38] Judicial foreclosure states versus non judicial foreclosure states

[23:31] Removing the supply drives the price upwards and eliminates cash flow properties

[25:30] Buying below replacement costs in Orlando

[26:59] Las Vegas may be a massively over speculated, natural growth was needed

[28:29] Large companies are investing in Orlando

[30:31] Everybody knows Orlando, Florida - It’s more than Disney

[33:51] Separating the Orlando market from other markets

[35:48] The right team, great deals are available and it’s landlord friendly

[37:30] Our management team was built for investors by investors

[39:31] Nobody wants an eviction but if it happens our group does it well

[43:20] Making the right choice in the real estate market - look 10 years in either direction

Mentions:

JasonHartman.com

Dark Sky App

While the last several years have seen huge losses for most investors in stocks, it has provided some valuable insights and allowed development of new concepts for stock investing. Jason Hartman talks with Dr. Chris Kacher and Gil Morales, principles and managing directors of Virtue of Selfish Investing, LLC and MoKa Investors, LLC, regarding their take on the markets, particularly commodities.

Chris and Gil explain their investment philosophy and concepts born out of frustration with other market strategies failing, relating how they were able to get through the market crash and the continued instability. One of the concepts is the Pocket Pivot, a favorable entry point in a stock before it breaks out of the stock base. Gil and Chris also share their outlook on stocks, commodities, currencies and inflation.

Dr. Chris Kacher is a stock investor and strategist with a background in the nuclear sciences. He is a co-founder of a stock advisory service, VirtueOfSelfishInvesting.com. Chris Kacher is a protégé of William O’Neil. He is known for achieving a total return of 18,241% during the period of 1996 to 2002 which he describes in his book Trade Like an O’Neil Disciple: How We Made 18,000% in the Stock Market co-authored with Gil Morales. Prior to his career as a stock trader, Dr. Chris Kacher pursued an education in the nuclear sciences at the University of California, Berkeley.

He won a Charles D. Coryell Award while being undergraduate. As a graduate student he contributed to the confirmation of the existence of Seaborgium and a synthesis of an atom of Darmstadtium. He received a Doctor of Nuclear Chemistry degree in 1995. In 2009, Chris Kacher released a debut album of his piano compositions Teardrop Rain under a stage name of Christian Casher. He is a certified practitioner of neuro-linguistic programming and hypnosis.

He (in co-authorship with Gil Morales) is a regular contributor to MarketWatch. Dr. Kacher is also currently a principal and Managing Director of MoKa Investors, LLC and Virtue of Selfish Investing, LLC, www.virtueofselfishinvesting.com. He currently manages money for qualified investors through each of those firms, and is a frequent guest and commentator on MarketWatch.com, CBS’s Portfolio Doctor, and CNN News Radio’s Wall Street Shuffle, among other venues. He and Mr. Morales are currently writing a second book to be published by John Wiley & Sons, Inc. in summer of 2012.

Mr. Morales began his investment career in 1991 as a stockbroker in the Beverly Hills branch of Merrill Lynch. In 1997, William O’Neil personally recruited Mr. Morales to join William O’Neil + Company, Inc. where he spent the next eight years as a Vice-President, internal Portfolio Manager responsible for managing a portion of the firm’s proprietary assets, and Manager of the O’Neil Institutional Services group responsible for advising over 500 of the largest and most successful institutional investors in the world, including mutual fund, pension fund, and hedge fund clients.

Mr. Morales also co-authored with William J. O’Neil a book on short-selling, “How to Make Money Selling Stocks Short,” published by John Wiley & Sons in 2004. In 2004, Mr. Morales was appointed Chief Market Strategist for William O’Neil + Company, Inc.  In addition to co-authoring, “Trade Like an O’Neil Disciple,” he also contributed to the book, “Wiley Trading Guide, Volume II,” published in 2001.

In the period from January 1, 1998 to December 31, 2005, Mr. Morales achieved in his personal account a total return of 10,904.25% as audited by Rothstein Kass & Company, a hedge fund auditing firm.  Mr. Morales received his B.A. in economics from Stanford University. Mr. Morales is also currently a principal and Managing Director of MoKa Investors, LLC and Virtue of Selfish Investing, LLC, www.VirtueOfSelfishInvesting.com. He currently manages money for qualified investors through each of those firms, and is a frequent guest and commentator on Fox Business News, MarketWatch.com, and CNN News Radio’s Wall Street Shuffle and Opening Bell shows, among other venues.

While the last several years have seen huge losses for most investors in stocks, it has provided some valuable insights and allowed development of new concepts for stock investing. Jason Hartman talks with Dr. Chris Kacher and Gil Morales, principles and managing directors of Virtue of Selfish Investing, LLC and MoKa Investors, LLC, regarding their take on the markets, particularly commodities.

Chris and Gil explain their investment philosophy and concepts born out of frustration with other market strategies failing, relating how they were able to get through the market crash and the continued instability. One of the concepts is the Pocket Pivot, a favorable entry point in a stock before it breaks out of the stock base. Gil and Chris also share their outlook on stocks, commodities, currencies and inflation.

Dr. Chris Kacher is a stock investor and strategist with a background in the nuclear sciences. He is a co-founder of a stock advisory service, VirtueOfSelfishInvesting.com. Chris Kacher is a protégé of William O’Neil. He is known for achieving a total return of 18,241% during the period of 1996 to 2002 which he describes in his book Trade Like an O’Neil Disciple: How We Made 18,000% in the Stock Market co-authored with Gil Morales. Prior to his career as a stock trader, Dr. Chris Kacher pursued an education in the nuclear sciences at the University of California, Berkeley.

He won a Charles D. Coryell Award while being undergraduate. As a graduate student he contributed to the confirmation of the existence of Seaborgium and a synthesis of an atom of Darmstadtium. He received a Doctor of Nuclear Chemistry degree in 1995. In 2009, Chris Kacher released a debut album of his piano compositions Teardrop Rain under a stage name of Christian Casher. He is a certified practitioner of neuro-linguistic programming and hypnosis.

He (in co-authorship with Gil Morales) is a regular contributor to MarketWatch. Dr. Kacher is also currently a principal and Managing Director of MoKa Investors, LLC and Virtue of Selfish Investing, LLC, www.virtueofselfishinvesting.com. He currently manages money for qualified investors through each of those firms, and is a frequent guest and commentator on MarketWatch.com, CBS’s Portfolio Doctor, and CNN News Radio’s Wall Street Shuffle, among other venues. He and Mr. Morales are currently writing a second book to be published by John Wiley & Sons, Inc. in summer of 2012.

Mr. Morales began his investment career in 1991 as a stockbroker in the Beverly Hills branch of Merrill Lynch. In 1997, William O’Neil personally recruited Mr. Morales to join William O’Neil + Company, Inc. where he spent the next eight years as a Vice-President, internal Portfolio Manager responsible for managing a portion of the firm’s proprietary assets, and Manager of the O’Neil Institutional Services group responsible for advising over 500 of the largest and most successful institutional investors in the world, including mutual fund, pension fund, and hedge fund clients.

Mr. Morales also co-authored with William J. O’Neil a book on short-selling, “How to Make Money Selling Stocks Short,” published by John Wiley & Sons in 2004. In 2004, Mr. Morales was appointed Chief Market Strategist for William O’Neil + Company, Inc. In addition to co-authoring, “Trade Like an O’Neil Disciple,” he also contributed to the book, “Wiley Trading Guide, Volume II,” published in 2001.

In the period from January 1, 1998 to December 31, 2005, Mr. Morales achieved in his personal account a total return of 10,904.25% as audited by Rothstein Kass & Company, a hedge fund auditing firm. Mr. Morales received his B.A. in economics from Stanford University. Mr. Morales is also currently a principal and Managing Director of MoKa Investors, LLC and Virtue of Selfish Investing, LLC, www.VirtueOfSelfishInvesting.com. He currently manages money for qualified investors through each of those firms, and is a frequent guest and commentator on Fox Business News, MarketWatch.com, and CNN News Radio’s Wall Street Shuffle and Opening Bell shows, among other venues.

If you are using your buy and hold properties as short term rentals, through a company like Airbnb,  you may be required to pay an additional 15.3% self employment tax. Although it may seem like a gray area to you, the IRS considers it an active business and will take note of which schedule you are filing. Short term rentals require more of your labor and your time which rarely gets accounted for when calculating costs. Considering all the aspects of short term rentals versus long term buy and hold properties will shield you from future surprises.

Key Takeaways

Jason’s Editorial:

[2:04] The huge flaw in Airbnb

[3:10] The passing of Dr. Wayne Dyer

[4:14] The female perspective

[5:40] Positive Feedback from the 1st Jason Hartman University

[7:39] Save the Date for the next Meet the Masters in early January 2016

[9:30] The Venture Alliance Rhode Island trip details

Brandon Hall Guest Interview:

[15:02] Airbnb investors also have a 15.3% tax on active income

[16:13] Monetizing the value of your time

[16:44] Automated business systems allow me manage my real estate in only 30 min per month

[19:01] It’s more time and labor intensive than a buy and hold property

[21:50] A complicated scenario in setting up short term rentals

[24:49] Short term rentals may earn more but the time is not factored in

[25:45] Schedule E or Schedule C?

[27:47] The IRS may be bringing on the audits

[29:33] A 5 year depreciation schedule

[31:05] The diminimous safe harbor

[33:23] 500 material participation is solely for rental properties

[36:06] An example of a three unit qualifier for material participation

[37:53] Long distance self management is possible and maybe easier

[39:35] Segmented depreciation, cost segregation using a sears catalog

[42:41] Feasibility studies are expensive

[44:43] Everybody needs a home office

Mentions:

YourErroneousZones

JasonHartman

reviews@jasonhartman.com

EO

HallCPALLC

If you are using your buy and hold properties as short term rentals, through a company like Airbnb, you may be required to pay an additional 15.3% self employment tax. Although it may seem like a gray area to you, the IRS considers it an active business and will take note of which schedule you are filing. Short term rentals require more of your labor and your time which rarely gets accounted for when calculating costs. Considering all the aspects of short term rentals versus long term buy and hold properties will shield you from future surprises.

Key Takeaways

Jason’s Editorial:

[2:04] The huge flaw in Airbnb

[3:10] The passing of Dr. Wayne Dyer

[4:14] The female perspective

[5:40] Positive Feedback from the 1st Jason Hartman University

[7:39] Save the Date for the next Meet the Masters in early January 2016

[9:30] The Venture Alliance Rhode Island trip details

Brandon Hall Guest Interview:

[15:02] Airbnb investors also have a 15.3% tax on active income

[16:13] Monetizing the value of your time

[16:44] Automated business systems allow me manage my real estate in only 30 min per month

[19:01] It’s more time and labor intensive than a buy and hold property

[21:50] A complicated scenario in setting up short term rentals

[24:49] Short term rentals may earn more but the time is not factored in

[25:45] Schedule E or Schedule C?

[27:47] The IRS may be bringing on the audits

[29:33] A 5 year depreciation schedule

[31:05] The diminimous safe harbor

[33:23] 500 material participation is solely for rental properties

[36:06] An example of a three unit qualifier for material participation

[37:53] Long distance self management is possible and maybe easier

[39:35] Segmented depreciation, cost segregation using a sears catalog

[42:41] Feasibility studies are expensive

[44:43] Everybody needs a home office

Mentions:

YourErroneousZones

JasonHartman

reviews@jasonhartman.com

EO

HallCPALLC

Jason and Naresh discuss the lure of working on Wall Street and how big firms lure college kids with 6 figure salaries and pricey hotel stays. They delve into real estate being the most multidimensional asset class and the financial protections it offers. They reflect on clients who are using money from their corporate jobs to build their real estate portfolios by investing in income property on their way to becoming financially independent. And finally, the unsafe, unstable investment of gold.

Key Takeaways:

[2:01] Florida is very desirable for a lot of reasons

[4:15] Naresh went to Duke and worked on Wall Street 

[6:12] An example of a Super Day at Morgan Stanley

[10:06] Kids don’t aspire to work on Wall Street, they are courted in college

[11:22] $150,000 a year right out of school

[13:06] We sell out when we become adults

[14:38] Venture Alliance event in September go to JasonHartman.com to sign up

[15:06] Invest money from your corporate career as a base on which to build your wealth

[16:44] You have no idea how the machine called Wall Street works

[17:38] Will gold continue to drop in value?

[18:20] Generation Y, what is it they find value in

[19:29] 7 reasons real estate is better than gold

[22:03] Your best insurance is a high loan balance

[23:25] Is your gold hiding offshore? How do you know it’s in storage?

[25:22] Jason’s Grandfather was a coin collector and had his home invaded for it

[28:45] 25% down for cash on cash return of 12% annually

[30:00] Multidimensional asset class is basically many different dimensions of income

[31:00] Information on future episodes

Mentions:

MorganStanley

HudsonHotel

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7 ReasonsRealEstateisaBetterInvestmentthanGold

GoldAntitrustActionCommittee