Tue, 31 December 2019
Jason Hartman and Rabbi Evan Moffic take today to review "the best decade in human history". As 2019 ends and we look forward to 2020, Jason and Evan discuss how the real estate market has transformed since 2010. They also examine the mindset of investors that invested through the Great Recession. Lawrence Yun's expectations for 2020 are also dissected.
[3:16] We are wrapping up the best decade in human history
[6:48] What qualities did the people who invested in real estate through the Great Recession have?
[11:56] Lawrence Yun's 2019 real estate year in review
[15:50] Climate change has caused the Northwest Passage to open up, which is huge for shipping
[18:51] Yun's prediction for the housing market in 2020
[24:26] Will the flow of people to cheaper cost of living states continue in the 20s?
[29:34] The "Collapse of Brands"
Mon, 30 December 2019
1357: Lumber Price Impact on Construction & Seven Figure Decisions, Having the Balls to Succeed, NV Real Estate Academy with Nick Vertucci
Jason Hartman and Investment Counselor Adam start today's show discussing what could happen to the cost of lumber and the cost of home construction based on the potential passage of the US-Mexico-Canada trade deal. With the deal already through the House and awaiting the Senate approval, it could have significant ramifications.
Then Jason talks with Nick Vertucci, author of Seven Figure Decisions and founder of NV Real Estate Academy, about Nick's journey through the real estate world after his tenure in the tech industry. Nick spills the details of his change and why he switched from selling and flipping to educating. The two discuss the downsides of real estate, but also the incredible rewards that can come if you stick with it, make decisions and keep moving forward.
[3:48] The US-Mexico-Canado trade agreement could have a big impact on real estate investors
[8:46] The price of lumber stabilizing would be fantastic for investors who are trying to figure out the cost of construction moving forward
Nick Vertucci Interview:
[14:10] Nick's journey from selling and flipping real estate to the education side
[20:38] Nick's first realization that he was making 7 figure decisions, and what true leaders all have in common
[23:40] Real estate isn't perfect, and it isn't easy, but it can bless you significantly
[27:22] Whether it's full or part time, have the entreprenuerial spirit and go create wealth
[29:15] Decision making is one of the most importan things a successful person has to have
Fri, 27 December 2019
1356 FBF: Future of Interest Rates & What Taylor Swift, Uber, and Robots Tell Us About Money with John Tamny, Part 2
Jason Hartman starts off today's episode with a little talk on where interest rates may be headed (according to one economist) and how that would impact current real estate investors. Hint: it's a pretty good thing. He also has to throw in a qualifier to his "Amazing time to be alive" mantra, because there are a few things that aren't amazing right now.
Then Jason finishes up his interview with John Tamny, director for the Center for Economic Freedom, Editor of Real Clear Markets, and author of Who Needs the Fed?: What Taylor Swift, Uber, and Robots Tell Us About Money, as the two discuss the impact of automation on all aspects of our life. John is excited about what all of this change will mean for the common worker and believes it will lead to higher quality of life for all.
[4:12] A qualification to the beloved Jason mantra of "It's an amazing time to be alive"
[7:18] Let Jason control the music and he cares not who controls the laws and the money
[12:13] What Martin Armstrong thinks interests rates will be jumping to
[15:28] Investors already in the game are praying for higher interest rates
John Tamny, Part 2
[20:18] Automation is going to lead into a surge in new kinds of jobs
[25:00] The demand for entertainment and service is going to explode
[26:49] Tamny's Law: as prosperity grows more and more people escape laziness because they find work they love
[28:29] John's thoughts on Universal Basic Income
Thu, 26 December 2019
On the day after Christmas, Jason Hartman takes a look at the amazing economy the North Pole is able to have. With massive exports and limited imports, it's truly impressive what they've been able to do. The main thing the North Pole has that no other country has is big data. What they have puts the companies like Facebook to shame.
Then Jason wraps it up by talking about the explosive growth in population that Florida has been experiencing.
Wed, 25 December 2019
Merry Christmas from Jason Hartman!
Jason shares one of his favorite poems that he discovered when he was only 17 years old. He learned it from Denis Waitley, but he wasn't the original author. Jason reads the poem and expresses his feelings about one of his favorite parts.
Tue, 24 December 2019
Jason Hartman and his mom take this Christmas Eve to evaluate how the United States was able to go an entire decade without going into a recession. This is something that has never been done before, so why did it happen now? The two listen to a CNBC story and break down each of the points: sometimes agreeing, sometimes pointing out flaws in logic.
Then to cap off the episode, Jason's mom discusses her recent 3 day property tour of the Space Coast and how it reminds her a little bit of California.
[3:14] CNBC clip about the US avoiding a recession for all of the 2010s
[7:00] GDP in the Great Recession dropped over 4% and some believe the unemployment rate (the unofficial one at least) was as high as the Great Depression
[11:57] There was relative price stability in the previous decades, but there was also wage stagnation
[21:47] Jason's mom's best advice for how to figure out what's going on in the economy
[24:09] Will Universal Basic Income become necessary when technology really kicks in?
[27:57] There may not be much of a bust coming because there hasn't been a huge boom
[28:23] Jason's mom's takeaways from her 3 day property tour of the Space Coast
Mon, 23 December 2019
Jason Hartman talks with NJ Ayuk, Executive Chairman of African Energy Chamber, CEO of Centurion Law Group, and author of the new book Billions At Play: The Future Of African Energy And Doing Deals, about the development that's happening inside Africa. Many outside of Africa view the continent with skepticism, but there's a big shift happening, especially in the banking sector (or lack thereof). Jason and NJ discuss some ways that Africa in general is beating first world countries, as well as how a shift toward property rights could go a long, long way toward more prosperity.
[3:54] Jason believes Nixon went to China to open up a cheap labor market
[6:06] Is Africa the next low cost labor market?
NJ Ayuk Interview:
[10:47] Africa may not have first world countries, but it has some infrastructure that's better than countries like the US
[14:04] Africa, unlike the United States, is not banking centric
[17:42] Money transfers have gotten so fast and easy that illiterate grandmothers are doing it
[21:21] What NJ views as the bedrock of a strong society
Fri, 20 December 2019
1351 FBF: Long-Term Tenants, Rent Increases & What Taylor Swift, Uber, and Robots Tell Us About Money with John Tamny
Today's Flash Back Friday comes from Episode 1003, originally published in May 2018.
Jason Hartman kicks off the show with listener Nate and his mom discussing what was learned during the recent Creating Wealth seminar, as well as getting some tips about how to create long-term tenants who are understanding of rent increases.
Then Jason talks with John Tamny, director for the Center for Economic Freedom, Editor of Real Clear Markets, and author of Who Needs the Fed?: What Taylor Swift, Uber, and Robots Tell Us About Money about why he believes the Fed doesn't have anywhere near the power they're given credit for, why their policies aren't effective in today's world, and why demographics may not be as useful as they're believed.
[5:01] If your tenants are there too long it might be a sign your rent is too low
[10:22] Some tips on long-term tenant retention
[14:49] Evictions don't just stem from not paying rent
John Tamny Interview:
[19:57] How Uber made John realizing something about the Fed
[23:40] The importance of the Fed is vastly overstated
[28:42] The idea that the rest of the world is in on some deal where they hold worthless treasuries isn't realistic
[31:39] Demographic arguments regarding Japan don't hold a lot of weight with John
[35:26] Money flows to its highest use, regardless of the Fed
Thu, 19 December 2019
What can you do when the government comes and seizes your assets? Jason Hartman and David Kirby, investigative journalist and author who was a regular contributor to The New York Times, Huffington Post and TakePart, and author of the new book When They Come For You, look into the practice of asset forfeiture, both civil and criminal. The two search for answers to the question of what regular citizens can do about the problem, as well as which states are really leading the charge in protecting their citizens.
[1:40] Police departments have become the modern day debtors prison
[6:40] The issue of debtors prison goes far beyond just the person who's incarcerated
[10:10] The egregious action of civil forfeiture
[17:31] What we can do about asset forfeiture
[20:40] Nebraska and New Mexico now have no asset forfeiture and 15 states now require a criminal conviction
Wed, 18 December 2019
Jason Hartman starts today's show examining a PBS News Hour story about the legacy of Paul Volcker. As you know, Volcker passed away recently, but the impact he had on multiple presidents still resounds.
Then Jason talks with Rabbi Evan Moffic about where we might be in the business cycle as we continue moving along in the longest economic recovery in recent history.
[5:47] PBS News Hour story on Paul Volcker
[9:10] Reagan's business plan was to put the Soviet Union out of business, and running up the deficit didn't cause the inflation everyone expected
[16:42] The next recession will not be real estate led
[19:39] The recovery didn't hit "par" from the Great Recession until 2013, so it's not quite so surprising we haven't had a recession in a decade
Tue, 17 December 2019
Jason Hartman starts today's episode from the Ritz-Carlton in Key Biscane, FL. He has created a new ratio for you to think about that can be put alongside the Rent-to-Value Ratio and all the other ones Jason has coined. Then he explores the concept of the unemployment rate versus the labor participation rate, the differences between them and what that means.
Then investment counselor Adam joins Jason to discuss a property in Mobile, AL and also to look at the growing wages in specialized blue collar jobs. The two explore how this will impact real estate values and what it could mean to 4 year colleges.
[5:06] Jason's newest ratio
[8:52] Unemployment Rate vs Labor Participation Rate
[13:32] The discouraged worker skews unemployment stats
[15:02] A property profile in Mobile, AL
[18:56] Blue collar wages are enticing people away from 4 year colleges
[24:28] How rising blue college wages rising could impact real estate and the cost of repairs to our investment properties
Mon, 16 December 2019
Jason Hartman starts today's show discussing the level of home flipping that's in the market right now. We're at a 7 year low, which means something in the marketplace today. It's important to accept today's landscape and figure out ways to invest in spite of that.
Then Jason talks with Chris Mason, mortgage broker, about what is happening in the mortgage market today, lending standards, and whether we're in danger of seeing another bubble burst.
[2:47] Home flipping isn't what it used to be, reaching a 7 year low
[8:02] We need to accept reality that inventory is tight and properties are more expensive
[11:25] The magic 2 words for a landlord
Chris Mason Interview:
[15:26] What increased loan limits mean for the mortgage market
[19:23] Are FICO scores really a good criteria for borrowers?
[22:16] Are financing rules getting too liberal again?
[26:15] Are interest only loans still available?
Fri, 13 December 2019
Today's Flash Back Friday comes from Episode 1009, originally published in June 2018.
Jason Hartman talks with Financial Survival Network's founder Kerry Lutz for the whole episode today, as the two discuss the very important concept of financial repression. While financial repression is bad for individuals, it can be very lucrative for people who have invested in real estate properly in their younger years.
The two also discuss the current phenomenon of "tax refugees" being created by states like California, and where these refugees are fleeing too, as well as when they expect any economic pullback to happen and what Trump is doing that the mainstream media isn't paying attention to.
[6:03] Make sure you get a home inspection and make sure you actually read it and learn the language
[9:211] What is financial repression?
[13:09] Financial repression is a great opportunity for those who invest in real estate
[16:45] Tracking the "tax refugees" leaving California
[23:16] What kind of economic outlooks has Kerry been hearing from the guests on the Financial Survival Network?
[27:14] The mainstream media is missing the fact that Trump is now making large chunks of the government irrelevant
Thu, 12 December 2019
Jason Hartman and investment counselor Adam explore the phenomenon of aging homebuyers in this episode before getting to some listener questions. Since the Great Recession the average age of homebuyers has skyrocketed into the upper 40s, about a decade older than it was before. Adam and Jason explore the reasons behind this shift and what it could mean for investors moving forward.
Then Jason and Adam answer 2 listener questions, one about Capital Expenditures and one about when NOT to do a 1031 Tax Deferred Exchange.
[4:16] The median age of homebuyers is now 47
[7:30] The downside of home ownership in this digital nomad society
[12:06] The history of homebuyer ages
[17:37] Are big CapEx like roofs and HVAC included in the pro forma maintenance percentages?
[21:12] Always ask for a Scope of Work prior to entering into a contract
[23:16] When shouldn't you do a 1031 Exchange?
[27:56] A property profile in Indiana
Wed, 11 December 2019
Jason Hartman talks with George Gammon, real estate investor, entrepreneur, investor and TV producer, about what's happening in the repo market and how that impacts the overall economy moving forward. The two address misconceptions about several aspects of investing and whether you should be happy or dismayed about certain aspects of the new Trump tax plan.
[3:50] Our longevity is going to be greatly changed in the next 20 years
George Gammon Interview:
[10:50] What is the repo market and why does it matter in the macroeconomic world?
[16:30] Money market funds are big players in the repo market
[19:05] The only "cheap" investment in today's economy is a 30 year fixed rate mortgage
[23:05] The new tax law has changed the way inflation is dealt with, and George doesn't think it'll be good long term
Tue, 10 December 2019
1343: Paul Volcker's Legacy & Thomas W Jones, Federal Reserve Bank, Freddie Mac, TIAA-CREF, Travelers, From Willard Straight to Wall Street
Paul Volcker, former head of the Federal Reserve, passed away December 8. Jason Hartman takes a look back at some of the biggest moments of Volcker's term and what it meant for the United States.
Then Jason talks with Thomas Jones, former vice chairman and director of TIAA-CREF, former Chairman and Chief Executive Officer of Global Investment Management at Citigroup, and former Chairman and Chief Executive Officer of Citigroup Asset Management. He was also the former Vice Chairman of Federal Reserve Bank of New York. Jason and Thomas discuss Thomas' entrance into real estate, why Thomas is so bullish on America long term, and what sets America apart from the rest of the world.
[3:47] Paul Volcker, the former Fed chair credited with "Breaking the back of inflation" has passed away
[6:04] Interest rates in 1980 spiked at over 18%, with inflation at 13%
Thomas W Jones Interview:
[11:50] Thomas and his bride actually started by bidding on 2 burned out buildings in Boston
[17:08] Thomas is perennially bullish long term, so dips in the economy are buying opportunities for him
[19:21] The changes on Wall Street over the years
[23:30] The most disappointing aspect to the reforms that have been made since the Great Recession
[28:39] One of the things that really sets America apart is the excited entrepreneurial spirit
[32:55] America faced a metaphorical crossroads in the late 1960s
[35:44] Our nation doesn't give itself enough credit for how far we've come, even though we still have a ways to go
Mon, 9 December 2019
Today's episode is Jason Hartman exploring Commandment #3: Thou Shalt Maintain Control a lot deeper. Maintaining control in real estate deals has been discussed quite a bit before, but it's not just real estate where control matters. Jason explores the collapse of Enron and why it was such a surprise and why Commandment #3 is crucial even in those scenarios.
[4:03] Airbnb hasn't been through a recession yet, so there's a lot that isn't priced in to the market
[8:06] The 3 major problems when you give up control in an investment
[13:54] The Infographics Show: The Business Deception That Cost $60 Billion
[16:59] The phrase "financial innovation" is a red flag when you hear it
[23:05] Most companies don't have people inside to pump the brakes, because everyone is incentivized to speak highly and show it in the best possible light
[25:26] Derivatives are the thing about the thing, but as an investor you want to be as close to the "thing" as possible
Fri, 6 December 2019
Today's Flash Back Friday comes from Episode 997, originally published in May 2018.
Jason Hartman starts off the show with client Doug about portfolio makeovers, why you should stay in the game for the long run, and the fallacy of the passive investment. Doug got out of the real estate business just before the (positive) market correction and missed out on a lot of money.
Then, Jason finishes his client case study with Muthiah. This time the two look at the actual process of Muthiah filing a claim against a bad provider and how he was about to get restitution after some avenues had failed. Jason also explains how to get a hold of his Hall of Shame resource list, and why you should file complaints even if they're not likely to help you alone.
[5:05] There's no such thing as a passive investment, but there are some things that are easier
[9:16] If you do the math properly, real estate versus the stock market isn't even a competition
[12:15] The problem with being too passive is you don't learn from your successes or failures
Muthiah Client Casey Study, Part 2
[20:00] Muthiah has never tried to self manage his current 20 properties
[23:00] Want Jason Hartman's Hall of Shame resource list? Fill out any form on JasonHartman.com
[25:18] Muthiah's process of filing complaints against the provider
[29:48] You're not just filing these complaints for yourself, it's your duty to protect other people
Thu, 5 December 2019
1340: Think & Grow Rich by Napoleon Hill & Success & Something Greater, Your Magic Key with Sharon Lechter
Jason Hartman takes a deep, deep dive into Napoleon Hill's work in today's show. We first start off dissecting the ideas that Napoleon brought out in his work Think & Grow Rich. Jason looks at various aspects of the book and how we can use them in our lives today and what power they have when used properly.
Then Jason talks with Sharon Lechter, former CEO of Rich Dad & Pay Yourself First and author of Success & Something Greater: Your Magic Key, about her experiences with both the Rich Dad company and the Napoleon Hill Foundation. Sharon provides unique insights into the impact both organizations have had on society today, as well as what she has discovered success means for various people.
[5:55] There's a lot more fulfillment in life available if we are not completely attached to the outcome
[10:22] Specialized knowledge has long been a must for true success
[14:49] The power of the mastermind is real and incredible
Sharon Lechter Interview:
[20:45] Napoleon Hill one of the original self-help authors?
[25:00] The different types of success Sharon saw while writing her latest book
[27:21] Why the man who sold the patent for the jet ski for $75,000 doesn't regret it
Wed, 4 December 2019
Jason Hartman begins today's show discussing something he has been promising for a while, which is the P vs PC balance. You can't go full P(production) or full PC (production capacity), you have to find a balance. Just like, as investors, we have to find a balance between action and education.
Then we have a clip from one of Jason's speeches at Profits in Paradise where he discusses the 3 forms of power.
[2:55] Social mobility is still possible but it's harder than ever before
[5:49] A clip from the Amazon documentary "Park Avenue: Money, Power and the American Dream"
[13:31] The P vs PC balance
[19:25] Quit getting ready and go
Profits in Paradise Live Clip:
[24:04] The 3 forms of power
[30:56] Think of ways you can use technology to improve your real estate business
Tue, 3 December 2019
Jason Hartman begins today's show with a little good news and a little bad news. Along with that Jason explores the idea of seeing the world in black and white and how getting older helps with that.
Then Jason finishes his interview with Ali Wolf, Director of Economic Research at Meyers Research, LLC., regarding what indicators you can expect to be leading and which are likely to be lagging. Some that seem like they could be leading are actually usually lagging and can hurt you if you invest off of them. Ali explains some ways she's been able to potentially see a downturn coming up to 3 years off.
[9:05] Bad news: More and more businesses are fleeing California
[10:20] Good news: homes are finally getting built
Ali Wolf, Part 3
[12:56] Consumer confidence, GDP and Non-Farm Payrolls are examples of lagging indicators
[17:21] Potential leading indicators that can forecast a downturn years ahead
Mon, 2 December 2019
Jason Hartman and investment counselor Adam begin today's show discussing two important things for a real estate investor: laws and the future. First off is good news for those investors that are fighting laws that restrict the ability of property owners to run short-term rentals. Then Jason and Adam discuss some good housing news that could lead to a happy 2020 (at least for housing).
Then Jason talks to in-house economist Thomas about interest rates. There's been some movement up and some movement down, but Thomas has an opinion on where he thinks rates will go in 2020 and why he believes that.
[4:17] The City of Austin lost a key case regarding short-term rental laws
[9:41] Make sure that you're not investing in a mania when you're looking at short-term rentals, and make sure your portfolio balance reflects that
[11:39] There's pre-demand in the housing market right now, which is a good sign for housing in 2020
Jason & Thomas:
[17:10] The Fed only indirectly influences mortgage rtes
[19:09] Why Thomas believes mortgage rates will go up in 2020
[21:20] The 2 Central Bank forces that will push inflation back up
[23:47] Why a $315 billion drop in money supply is important even though it's not much of a percentage of worldwide supply