The Creating Wealth Show Blogcast

At some point, most of us realize that life is a gradual process of acquiring the knowledge necessary to stay alive and maybe make a little money along the way. Remember when Mom told you not to eat stuff off the sidewalk? There’s a reason for that – you could get very sick.

Or when Dad told you not to stand on the very highest rung of the ladder because it’s not safe, as he soon proved by going to the very top in a psychotic effort to clean the last leaf from the gutter – and promptly fell off?

Likewise, getting off to the wrong start with outdated or just plain wrong knowledge about investing can hamper your success forever if you don’t get it straightened out early. The following are four investment truisms you should learn sooner rather than later.

1. Don’t drink the Wall Street Kool-Aid of stocks, bonds, and mutual funds. Real estate is a much better investment, as has been historically proven.

2. Gold is not an investment. It’s just a different form of money that holds value better than paper currency.

3. Not just ANY real estate though. Income properties can make you wealthy when done correctly.

4. You don’t have to pay $5,000 for a fancy course to become an expert at this style of investing. You only need the foresight to visit the websitewww.JasonHartman.com and absorb the free resources found there.

Alrighty then. You can thank Jason Hartman and Platinum Properties Investor Network for giving you the tools to become very wealthy in a shorter time than you might think. This information is golden.

What are you going to do with it?

As you may know, we at Platinum Properties Investor Network believe that real estate, income properties specifically, are the premium investment asset in the world. It vexes us mightily to realize that millions of hard-working Americans are coming home from a day’s work to plop themselves down at the computer and see what their stocks have done that day.

We can already tell you the answer to that without even looking – up, down, sideways. Forward two steps, backwards two steps. It’s all over the place. What is this supposed to be? A retirement plan or a salsa dance? Hard to tell the difference.

The problem, as you may or may not have surmised, is that the stock market of today has fundamentally changed from the stock market of the 1940’s and 1950’s. Back then, dividends were the name of the game. A small investor could make regular investments in a blue chip company and, over the course of a lifetime, amass a comfortable retirement nest egg through dividends and appreciation.

These days, all joking aside, putting your money in the stock market is more like hitting the casino in Las Vegas. Dividends are paltry. The only people getting rich on Wall Street these days are the ones sitting across the table from you. You know who I’m talking about – brokers, advisors, bankers. They wave shiny brochures in your face with one hand while helping themselves to more cash from your pocket with the other.

This is no way to invest. You will exit this life a sad, frustrated soul if you continue to believe the lie. We’d like to introduce you to the truth about how to create life changing wealth no matter your age or experience level. Call our expert investment counselors at 714-820-4200 and prepare to look behind the curtain.

Like a broken record, we keep telling you that big-time inflation is just around the corner and now is the time to adjust your investment strategy. But why do we think inflation is coming? Okay, fair question. Here is the chain of economic events we see coming.

1. The natural consequence of our politicians “print more money no matter what” philosophy is increasing inflation. As prices go up, more investors will sell bonds in an attempt to preserve their wealth. This will place an upward pressure on bond yields as rock bottom interest rates for government treasuries will no longer be acceptable.

2. As treasury yields drift higher, the ripple effect will cause mortgage rates linked to a treasury index to move higher also. This will cause a rise in “real” real estate prices because, due to inflation, the same monthly payment will not buy the same amount of house.

3. Diminished purchasing power will stall the real estate market, sending prices and appreciation down, down, down.

Taking into account the chain of events we just described, it would be a bad time to buy into real estate then, in a general sense, at least. We have a pretty good idea that Platinum Properties Investor Network will still be able to find and recommend income properties that make financial sense the day you buy them BUT there’s no denying that it will be trickier to make a profit.

Higher interest rates will mean a higher mortgage payment and lower cash flow. The time to get in is now. Did you know that investing in long term, fixed-rate debt tied to a packaged commodity (like a rental house) can make you wealthy even in the face of inflation?

Call one of our expert investment counselors at 714-820-4200 to find out how.

What’s to stop an interested income property investor from showing up at one of our heralded educational events, find out which markets we’re recommending, and head out to make your own connection with your own real estate agent?

The short answer is nothing. There is absolutely to stop anyone from doing that. It’s not illegal. It’s not immoral, and we won’t hate you for it.

We do, however, sort of cringe because we know a certain percentage of educational event attendees are doing just that. The problem is that even though we may say that Austin, Texas, is a great place to buy (which it is right now), we’re only talking about the macro market or the city. You can’t hope to be successful proceeding on that information alone. You have to drill down into the micro market, the neighborhood level, to find the sorts of income producing properties that will be spectacular additions to your investment portfolio.

Don’t think of us as the middleman. We’re not someone to be cut out of the picture. Our network is one of the most valuable resources you’re likely to find. In addition, it’s our business philosophy to always work on your behalf. Let’s face it, there are sharks in the real estate water. We work with brokers in our recommended local markets to get you the best deal available. We have clout because we send them lots of business. They don’t want to mess with you because they don’t want to lose us as a referral network.

Please visit www.JasonHartman.com and spend some time absorbing the free educational resources found there. They really can make you a sophisticated real estate investor in a short amount of time.

Ahh, your own private bank. Wouldn’t it be great? Working, well, uh, banker’s hours. Plenty of cash at hand when you’re ready to begin investing. At Platinum Properties Investor Network, we’d like to point out there is a private bank you can use for income property investing you might not have thought about.

It’s called your home.

Yep, the structure you live in. You’ve got equity in there, right? Our average customer comes to us with about $300,000 equity in their home but don’t get discouraged if you don’t have anywhere near that much. We’ll show you how to start small and, before long, you’ll be creating the kind of wealth with real estate you only dreamed about.

Here’s how to calculate the amount of equity you have. Let’s say you bought a house for $350,000 and you’ve paid $175,000 on a $300,000 loan. A recent appraisal puts your home’s worth at $500,000. To figure out how much equity you could take out, subtract the amount owed on the loan from the current appraised value like this:

$500,000 – $125,000 = $375,000

This is why we say “Refi ‘til ya die!” You can cash out that $375,000 and use it to make down payments on several different income properties. Assuming you put 20% down, you could control investment properties worth $1.5 million. In case you aren’t aware, inflation is reducing the real value of your equity as long as it sits in the house. Get it out! Put it to work.

Call one of our investment counselors if you have any questions at all. 714-820-4200.

If you’ve been interested in income property investing for any length of time, whether you’ve actually pulled the trigger and bought a property or not, you’ve likely run across the “No money down!” hucksters. They’ll show you pictures of happy couples relaxing on their favorite beach, living a life of frivolity and luxury on the income from their rentals.

Don’t get us wrong, you can create plenty of wealth using the income property approach but at Platinum Properties Investor Network, we feel it’s our duty to sprinkle a little truth dust on certain claims. In fact, an entire website called www.Infomercialscams.com has sprung up around the No Money Down concept. Go there to read stories of problems potential investors have run into while trying to buy a property without a down payment.

Can you really ask for a no interest one year note from the selling agent on their commission? Well…you can ASK. Get ready for the ensuing laughter.

All we’re saying is if it sounds too good to be true, it probably is. Don’t be enticed by testimonials, a pretty website, or intense sales letters designed to make you stop thinking with your brain.

We’re proud of our operation. From the very beginning, Jason Hartman based Platinum Properties Investor Network on honesty and integrity. We welcome all questions about how we make great returns with our own income property investments, and we’ll never charge you a cent for the education you can find at www.JasonHartman.com.

The answer to the question posed in the headline is “When hell freezes over” or, to put it more politely, “Never.” We feel pretty sure in making such a definitive statement because there is no logical way inflation will ever stop being a serious economic issue as long as our wrongheaded politicians think increasing the money supply is going to solve every problem.

How does the government cause inflation?

We love a good conspiracy theory as much as anyone but this time it’s straight forward. Money supply drives inflation for the overall economy. When the government increases the amount of money in circulation while, at the same time, the amount of goods and services remains flat or even decreases, you get what we’ve had for 40 years – a steadily weaker dollar and an annual inflation rate of 10%. Yeah, yeah, we know the government claims it’s only about 4% but that, friends, is a load of horse you know what.

The real problem with inflation is that it erodes the value of all dollar denominated assets like home equity, savings, CD’s. The great part is that liabilities like debt also has its value eroded. This is why we say have your assets denominated in physical things (like property and houses) and your liabilities denominated in debt.

Understand that last sentence, and you're halfway to rich already.

Most of the time, we at Platinum Properties Investor Network would tell you that taking out a loan against your 401k retirement plan would be a bad idea. The reason is that the majority of people would waste the proceeds on the trappings of wealth – boats, cars, expensive vacations. If that describes what you would likely do with a 401k loan, you have our permission to skip the rest of this blog.

For those of you still with us, there is one situation where we think it’s a great idea to borrow against your retirement nest egg if you are absolutely certain you can follow the plan. The plan is to employ a prudent but uniquely effective real estate investment strategy. In short, we’re talking about income properties, which is when you buy single family residential homes and rent them out. In case you haven’t heard it before, this has been proven historically to be the best investment. It’s how the majority of wealthy Americans got that way.

But DON’T just run out and start buying up properties nilly willy. That could be worse than leaving your money in the stock market. Get an education first and do it right from the beginning. A good, free resource is the Creating Wealth podcast found at www.JasonHartman.com. Jason Hartman has devoted much, time, energy, and expense into making this a premium, no cost education for both savvy and first time real estate investors.

Try it. You might like it. It’s probably your best chance to get wealthy in this life.

Warren Buffett, the Sage of Omaha, seems like a kindly old gentleman when you see him on television but never forget the man got to where he is in life with an eagle eye constantly cocked for opportunity. Recent events in the stock market are a good lesson for why we say the average investor should run from Wall Street investments with all due speed.

Buffett, banks, and other elite investors are using the bodies of the middle class American to climb to even more wealth. How does it work? Here’s one example.

Due to the cycle of expansion and contraction of credit by major banks, we have major financial companies like AIG is serious distress. Their stock prices take a tumble and there seems to be a danger of bankruptcy. Then suddenly, like the knight on a white steed, Mr. Buffett steps in and says he will invest $10 billion in AIG. Shortly thereafter the government decides to plow $10 billion of bailout money into the company as well. The AIG ship has righted itself. Stock prices are recovering and average investors begin to take advantage of the resurgent AIG.

The sneaky part is this – Buffett is waiting for the hordes of middle America to begin buying so he can sell. He never said he was going to keep his $10 billion there. He’s just waiting for the prices to move upward so he can sell his stock back to you at a higher price.

See why the power elite make money with stock investing and you don’t?

Spend any time with television or radio these days and you likely will hear the pitch that corporate credit is the answer to it all. World peace, hunger, nuclear proliferation, a veritable free flow of money that gushes into your pocket any time you want it to.

At this point, any thinking human with more than two brain cells to rub together should be a little suspicious. Is there anything in life that works like that? To this, we feel safe in saying “no.”

But there are some potential advantages to corporate credit, especially if your business plan involves short-term rehab projects. We’re doing some research into corporate credit and will get back to you with more in depth information later but, for now, here’s the thumbnail sketch.

The term “corporate credit” means that you create a legal business entity like an LLC or corporation and then apply for loans or a line of credit not through your personal identity but as that business organization. The upside is you could potentially obtain more money through this approach than you would personally.

The advertisements would have you believe it only takes a few months before $300,000 literally leaps into your hand. The truth is – probably not. Smaller community banks seem to be more likely to work with newly established corporations but the interest rates will be high. They want to develop a relationship with you but they’re not going to hand you the keys to the vault.

And remember this, default on one of these business loans and it WILL show up on your personal credit report.