Creating Wealth Real Estate Investing with Jason Hartman

Today's Flash Back Friday comes from Episode 1048, originally published in August 2018.

Jason Hartman discusses some of the main stories in the news today. The first story is one of the reasons Jason created Commandment #3 (Thou Shalt Maintain Control), the next is a potential sign of a market slowdown from none other than the scandal plagued Wells Fargo, then the potential return of risky loans. Finally we wrap it up with a story on how California might make it even more expensive to live there.

Key Takeaways:

[2:09] Forgetting Commandment #3 can often be an expensive lesson and the biggest Ponzi scheme in the world

[6:52] Always think of opportunity cost when you have money sitting around

[12:20] A potential sign of a market slowdown from Wells Fargo

[16:49] The housing market is slowing from the top down and hasn't hit the type of homes that Jason's network sells

[20:44] Are banks starting to push risky loans?

[26:07] California is considering changes to Prop 13 and home requirements, which Jason believes would be devastating for real estate holders


Jason Hartman's Alexa Flash Briefing

The PropertyCast

Direct download: CW_1381_FBF_Jason.mp3
Category:general -- posted at: 5:00pm EDT

Rabbi Evan Moffic, author of The Happiness Prayer, joins us from the Profits of Paradise conference where he speaks on happiness and what leads to a meaningful life. His rich insight on religion, capitalism and happiness give us a new way of approaching personal gain and how we can share that with others. And he invites us to ask ourselves, does more money lead to more happiness?

Key Takeaways:

[3:00] If money doesn’t buy happiness, does poverty buy happiness?

[4:05] Are Super Bowl tickets affected by inflation?

[8:00] Fannie Mae issues a warning about fake companies

[17:50] Does money make us happier?

[21:00] From 1-10, how satisfied are you with your life, and does your income affect that?

[22:56] Happiness is a kind of currency

[26:25] PERMA: Positive emotions. Engagement. Relationships. Meaning and purpose. Accomplishment.

[29:30] Love of money is the root of all evil, not money itself.


Direct download: CW_1380_Evan_Moffic.mp3
Category:general -- posted at: 6:14pm EDT

Every deal seems too expensive at the outset. Jason Hartman speaks on the Cap rate or less affectionately called, “The Crap Rate” as a faulty metric. And another proof of commandment number 3 of 21 Commandments of Successful Investing, what did Robert Morgan do?

Jason Hartman talks with Jonathan Slain, a high growth leadership coach, founder of, and author of Rock the Recession, about how to prepare your business to ensure that you not only survive, but thrive through recessions. Having a war chest BEFORE it starts is absolutely crucial to your continued success, so make sure you have a plan and rock your way through any recession.

Key Takeaways:

[5:37] Every deal becomes a good deal looking in the rear view mirror

[11:35] How do you grow during a recession?

[15:20] You can increase your business significantly by spending into a recession

[21:00] Make sure you have a recession plan BEFORE the next recession

[23:20] Why Jonathan thinks a pullback will happen in 2020

[27:27] Examine your business to find what you can do that will make your competition irrelevant

[31:00] The big opportunities lie on the fringes of creativity


Rock the Recession: How Successful Leaders Prepare for, Thrive During, and Create Wealth After Downturns

Direct download: CW_1379_Jonathan_Slain.mp3
Category:general -- posted at: 5:00pm EDT

Thou shalt diversify. The continuation of our discussion on due diligence. Jason and Adam present tips on investigating the areas in which you own property. Use tools like Google street view to take a tour of the surrounding areas to understand the influences for value and rent.

Adam shares a real life scenario on a property in Merrillville, Indiana. Find out what questions you should ask before investing in a property.

Key Takeaways:

[3:00] Thou shalt diversify. Diversity into three to five markets.

[5:55] Use google street view to understand the areas that surround your investment.

[8:30] Check with local property management companies to confirm rent estimates.

[11:15] Put the system to work with a real life evaluation of a current property.

[14:10] The institutional apartments do a really good job of squeezing the rent out. We should be demanding more for our properties.


Direct download: CW_1378_Adam_2.mp3
Category:general -- posted at: 5:00pm EDT

Do the Due! Do your due diligence. Jason Hartman speaks with investment counselor Adam Schroeder about key aspects of income property investing including; checking home prices and contacting the Tax Assessor. The two give insight on working with lenders and the importance of home inspection and re-inspection.

Key Takeaways:

[4:00] Where to find pricing: MLS, Zillow and Tax Assessor

[9:10] Pictures can be insanely misleading. Sometimes, it’s not even the same house.

[14:25] A quick call to the country tax assessor can give you a ballpark estimate on taxes for an investment property.

[19:35] Lender deals can change due to dynamics of reevaluations.

[24:00] The licensing laws vary from state to state, check the requirements for you state


Direct download: CW_1377_Adam.mp3
Category:general -- posted at: 5:00pm EDT

Today's Flash Back Friday comes from Episode 1022, originally published in July 2018.

Jason Hartman takes a turn to the listener mailbag while talking with Kerry Lutz, founder of the Financial Survival Network. Today's topics run the gamut from when to rent your personal residence, how RV ratios work around the world, how to work with Jason, and how to get OUT of the real estate game as you get older.

Key Takeaways:

[2:41] Why Jason has long believed the idea of public unions is ridiculous

[6:27] The stigma between renters and home owners seems to be disappearing, if not already completely gone

[9:54] Mason's question on renting his primary residence

[18:42] RV Ratios apply world wide

[19:23] How is depreciation unwound?

[24:58] Is it wise to put 100% down on a property if you have the cash?


Direct download: CW_1376_FBF_Kerry_Lutz.mp3
Category:general -- posted at: 5:00pm EDT

Successful people aren’t martians! Success is possible for everyone. Jason Hartman speaks on taking advantage of a lucky situation by preparing for the opportunities that will inevitably drop into our lives.

Then, Jason and George Gammon return for the conclusion of our three part story: the building blocks of the Jason Hartman Risk Evaluator. Jason also shares a modern day story taking place in Seattle, proving once again the risk of investing in a cyclical market.

Key Takeaways:

[3:45] The vast majority of us came from very humble beginnings

[8:06] “Luck is what happens when preparation meets opportunity” - Seneca

[10:24] The content is what happens, the context is the environment (our head) it happens in

[17:45] The risk when investing is in high land values

[18:26] Three types of markets: linear, cyclical and hybrid. What market is a preferred market for investing?

[23:00] Low land value equals low risk, high land value equals high risk

[28:10] Human biases: recency bias, sunk-cost bias, and certainty bias can all distract an investor


The PropertyCast

Direct download: CW_1375_George_Gammon3.mp3
Category:general -- posted at: 5:00pm EDT

In Part 2 of this 3 part series, Jason Hartman breaks down the ingredients of a house, otherwise known as “the improvement.” Jennifer, the insurance agent, is a key to understanding the land versus improvement value, and George Gammon shares an exhausting experience with lot subdivision and development. Eric, the appraiser comes out with good news prompting the question, “how would you allocate the new value between the two primary components, land and improvement?”

Key Takeaways:

[8:13] CPA (Cost Per Action) and is it applicable in a Real Estate Investment

[13:37] The ingredients of a house starting with raw materials

[16:46] “When I’m looking at an income property... I look at it as though I’m buying a stream of cash flow.”

[13:38] The ingredients of a house, labor costs

[24:06] The ingredients of a house, regulations

[27:20] The ingredients of a house, cost of energy

[29:05] “How do I know the land value vs the improvement value?”


Direct download: CW_1374_George_Gammon2.mp3
Category:general -- posted at: 5:00pm EDT

George Gammon interviews Jason Hartman about The Jason Harman Risk Evaluator. In Part I of this three part series, Jason describes his ‘aha moment’ after 19 years of experience in Real Estate. The story begins with a call from Jennifer, an insurance agent in Irvine, California that leads to the necessity and application for understanding the LTI (Land to Improvement ratio).

Key Takeaways:

  • 1:10 Homework Assignment - GDP, Per Capita GDP, PPP

  • 16:20 “No such thing as a passive investment”

  • 18:03 The Hartman Risk Evaluator, LTV and LTI ratios discussed

  • 21:28 The call from Jennifer, the insurance agent

  • 23:45 What factors increase improvement value


The Rebel Capitalist Show

Direct download: CW_1373_George_Gammon_1.mp3
Category:general -- posted at: 5:00pm EDT

Jason Hartman speaks with returning guest and author of the book, “Heads I Win Tails You Lose,” Patrick Donohoe. The conversation touches on topics of an ever changing world culture that continues to reshape how we approach wealth, the freedom to do, and in what we find meaning. Despite some of the chaos and cultural decay, the 2020’s are going to bring some excitement to the world.

[20:40] It’s not freedom from having to do something, it’s freedom to do something.

[22:07] The order of magnitude: an interesting time in history where we are going to see massive change.

[24:00] The rising 3 billion, that aren’t online yet: If you think that society has benefited from sharing knowledge, you’re right.

[26:38] There will always be winners and losers

[28:40] The Ritz Carlton Slogan discussion: “Systemize the predictable so you can humanize the exceptional.”

[32:27] People are still trying to find meaning in other things.

[33:16] A little bit of struggle is good for the human spirit


Direct download: CW_1372_Pat_Donohoe.mp3
Category:general -- posted at: 5:00pm EDT

Today's Flash Back Friday comes from Episode 1035, originally published in August 2018.

Jason Hartman starts off today's episode with a tale of his current lawsuit and the experience it's given him with the legal system. The way our current system is set up nobody wins, and there doesn't seem to be a lot of accountability going on either.

Jason also plays some Voxer messages from client Drew Baker about his recent experiences doing self management. After that Jason finishes up his interview with podcast producer Adam Schroeder. This time the two discuss finding repair people, what to expect from property management software, whether to allow grace periods and what kind of late fees to charge.

Key Takeaways:

[1:57] Nobody wins in our current legal system

[6:04] Get the latest properties available from Jason through the PropertyCast

[7:38] Drew's experience self managing

Adam Schroeder Interview:

[13:32] You should have a clause in the lease stating which repairs the tenant is responsible for

[17:58] What to expect from property management software

[22:01] The importance of an increasing late fee


The PropertyCast

Direct download: CW_1371_FBF_Adam.mp3
Category:general -- posted at: 5:00pm EDT

Did you know that there are more than 200 markets across the United States where the "typical" home costs more than one million dollars? Jason Hartman explores what is going on with home prices and where some surprising locations are that have incredibly high real estate prices.

Then Jason talks with Pat Hiban, author of Tribe of Millionaires: What is One Choice Could Change Everything? and co-founder of GoBundance, about the multiple effects that are in our lives and how we can situate ourselves in a way that we can live our best life.

Key Takeaways:

[2:07] There are over 200 cities where the "typical" house is over $1 million

[7:04] Some surprising cities that made the million dollar list

Pat Hiban Interview:

[13:34] Be careful in good times like these that you're not dealing with people who are just skimming the cream off the top and won't be here for you when things turn

[25:36] The "one sheet" idea Pat uses in his masterminds

[29:02] The Connection Effect


Direct download: CW_1370_Pat_Hiban.mp3
Category:general -- posted at: 5:00pm EDT

Jason Hartman and investment counselor Carrie go over how the network functions. The two explain the process of finding properties, getting financing, evaluating the provider, and choosing property management. This can seem to be a daunting task, but that's why the network exists: to provide the complete solution for real estate investors.

Key Takeaways:

[5:08] The middle market between Fannie Mae/Freddie Mac loans and hard money has been a boon for investors

[10:52] Keep your investment counselor in the loop with your purchases, having a Jason Hartman email address in the thread helps things move faster

[14:34] Form relationships with market specialists so that you can know what you're getting into with future properties


Direct download: CW_1369_Carrie.mp3
Category:general -- posted at: 5:00pm EDT

Jason Hartman and Rabbi Evan Moffic take a look at America's one affordable trophy city: Chicago (which just so happens to be where Evan lives). The two explore the things going on in the area that are helping drive business and helping investors in the area make some good money.

Then Jason and Evan explore the Memphis market and what the two like about the future of the city.

Key Takeaways:

[8:28] YouTube offers the ability to learn anything

[12:15] Chicago is the only cheap, iconic city in America

[16:04] Democrat leaders in Chicago have still been pro-business

[19:02] 2 big things that are happening in Chicago right now that are good for investors

[22:09] Evan's thoughts on the Memphis market


Direct download: CW_1368_Evan.mp3
Category:general -- posted at: 5:00pm EDT

Jason Hartman and Investment Counselor Sara take a look at what they like about the Orlando market, in terms of the city itself and the team that's providing properties there. They also explore some of the ways that pro formas can be manipulated and why new construction is able to outperform projections.

Key Takeaways:

[2:43] Why Sara likes the Orlando market and team

[7:05] Things are going to get worse for both homeowners and renters unless we can get the cost of materials and construction under control

[10:46] Why rent guarantees are overrated

[12:50] Other areas where new construction is available


Direct download: CW_1367_Sara.mp3
Category:general -- posted at: 5:00pm EDT

Returning guest Adam Schroeder joins Jason Hartman for this episode, as the two discuss the steps for transitioning from professional management of rental properties to self management. Adam and his wife have 3 (going on 4) properties and are thinking that the time is soon coming to venture out on their own. But before doing that there are some important things to do like what information to get from your property manager, what kind of initial contact to have with the current tenant, finding forms and contracts when you're finding/reupping tenants, pet rent, and more.

Key Takeaways:

[3:36] Why Jason loves a good recession

[8:29] Jason's been involved in around 10,000 real estate transactions

[13:08] Sometimes removing a property manager actually makes things easier

[16:27] The information you need to get from your current property manager if you're going to make a switch

[21:26] A way to change your relationship with your property manager rather than completely ending it

[24:09] Bad property manager reviews on sites like Yelp might be a good thing, that's why you have to read them

[29:23] Insurance: individual policies or a commercial policy?


Direct download: CW_1366_FBF_Adam_Schroeder1.mp3
Category:general -- posted at: 5:00pm EDT

Jason Hartman and economist Thomas look back on the 2010s to see what the biggest stories were for investors. From the War on Terror to Obamacare to the aftermath of the Great Recession, it was a decade fraught with ups and downs that provided opportunities for investors to make good money.

Key Takeaways:

[5:13] The 10th biggest story of the decade: the War on Terror explodes the deficit

[8:20] Why European debt issues will come to the fore in 2022

[12:37] The idea of Purchasing Power Parity and what it says about China's economy vs the US

[16:42] As much as Jason doesn't like Obamacare, it makes the list of Top Stories of the 2010s

[26:53] What Jason learned years ago during his day as a lobbyist

[29:10] Thomas is seeing at least a 15% drop in the market coming when the Fed decides to let risk enter the market again


Direct download: CW_1365_Thomas.mp3
Category:general -- posted at: 5:00pm EDT

Jason Hartman and Lisa take a look at the phenomenon that's sweeping homebuilders across the country: build to rent. It's something that's not been done before and that Jason takes as a very positive sign for renter growth moving forward. Jason and Lisa then discuss whether the differences between new builds and renovated properties before moving into some market profiles in Florida and Oklahoma City, where we are happy to be venturing back into.

Key Takeaways:

[2:34] What the build-to-rent phenomenon means the builders are thinking

[6:06] Even Toll Brothers is getting into the Build-to-Rent phenomenon

[12:05] Jason's thoughts on appreciation of new home builds vs renovated properties

[17:27] A clip on the growth going on in Florida. The new Texas?


Direct download: CW_1364_Lisa.mp3
Category:general -- posted at: 5:00pm EDT

Jason Hartman and Investment Counselor Adam take a moment today to discuss the hot topic of Modern Monetary Theory (MMT). Adam, being a big proponent of MMT, plays a clip from a recent episode of The MMT Podcast and discusses what MMT is, how we can use it in our observation of the economy, and what it can mean for our investing. After they finish up their MMT talk, the two profile a property that's available in the Atlanta, GA market.

Key Takeaways:

[3:49] How money becomes money

[8:03] Why Adam and Jason think cryptocurrencies not backed by the government will never thrive

[14:25] What we actually need to worry about when we have a tax cut or increase in government spending

[17:37] Shrinking deficits lead to pullbacks and federal surpluses lead to recessions

[25:40] Property profile in Atlanta


The MMT Podcast

Direct download: CW_1363_Adam.mp3
Category:general -- posted at: 5:00pm EDT

Jason Hartman and economist Thomas look back at some of the happenings of 2019 and then try to envision what's going to be happening in 2020. The primary thing being discussed today is the yield curve. There is constant talk about how a negative yield curve signals recessions, but how long does it have to be negative? Were we inverted too long in 2019? How long before we see the results of the negativity? Jason and Thomas try to answer all these and more.

Key Takeaways:

[4:13] What does the yield curve exploding mean?

[7:17] Why an economist is saying that real estate is less risky than stocks in 2020

[12:36] Hybrid markets had a good 2019 and look like they'll have a good 2020 as well

[13:38] A CNBC clip about the yield curve

[18:14] The Fed has the dual mandate of moderate to low inflation with maximum employment, but they seem to consider financial stability as a 3rd mandate


Direct download: CW_1362_Thomas.mp3
Category:general -- posted at: 5:00pm EDT

Today's Flash Back Friday comes from Episode 1001, originally published in May 2018.

Creating Wealth's 1001st episode is a time to take a look back at the people who have made this show possible: the listeners and clients. Jason has been blessed to have such great clients who come on the podcast to tell other listeners about their real estate journey. Today we've curated some mini client case studies as we look back at what actual real estate investors have to say about their experience working with Jason.


Direct download: CW_1361_FBF_Mini_Case_Studies.mp3
Category:general -- posted at: 5:00pm EDT

Jason Hartman explores what's happening in America today when it comes to population growth (or the lack thereof). When you look at the demographics of babies being born today and what the housing market is going to need in 30 years, it's not a great thing for society. But that's why investment real estate can protect us.

Then Jason talks with Quint Studer, author of Building A Vibrant Community: How Citizen-Powered Change Is Reshaping America and founder of Studer Community Institute, about how he was able to change Pensacola, FL and how other areas could be renovated using the exact same strategies that he employed.

Key Takeaways:

[2:43] 3 basic things that comprise population trends

[7:56] Construction in the 2010s was virtually non-existent

Quint Studer Interview:

[14:23] The components of Pensacola's turnaround

[17:58] In the midst of the Retail Apocalypse, what is actually working in retail?

[21:40] Civic Conversations, bringing in experts to discuss their specialties, opened up opportunities they didn't realize would happen

[24:28] There needs to be heavy investment into skill development


Direct download: CW_1360_Quint_Studer.mp3
Category:general -- posted at: 5:00pm EDT

Jason Hartman and Investment Counselor Adam take the first day of the year to challenge every listener to sit down and make an investment plan for the year. Yes, New Year's Resolutions are cliche, but making a plan is better than not, and it's important to push yourself. You want to make it hard to reach, but not impossible. You need to take inventory of the things in your life you have, the things you can monetize, the things you can cut back on, and the things you can't or won't cut back on. After doing this you'll have a realistic look at what you can do to invest in your future.
Key Takeaways:
[8:47] You want your New Year's goals to be just out of reach but not out of sight
[13:39] A Jacksonville, AR property profile
Direct download: CW_1359.mp3
Category:general -- posted at: 5:00pm EDT