Tue, 27 December 2016
Jason speaks with Bob Pozen about what a Trump administration could mean for the US real estate market on the whole. Potential changes in the works could mean good things to small and medium sized banks, as well as increasing how much big banks lend. Bob Pozen is a Senior Lecturer at MIT’s Sloan School of Management, a Senior Research Fellow at the Brookings Institute and former Associate General Counsel for the SEC. He has two books: Extreme Productivity, and Too Big to Save.
[2:11] Legislation that may be changed through banking system while Dodd-Frank is left as is.
[5:50] There has been too much regulation on small to medium sized banks.
[7:33] The problems are Fannie Mae and Freddie Mac are they were never public nor private.
[11:13] The FHA and VA insure 100% of the mortgages made by banks.
[11:55] More money flowing into the real estate market will cause an upward pressure on prices.
[14:46] Home buying increases when rates start to go up but then level out.
[15:28] Pozen was chosen by President Bush to join a bipartisan commission to strengthen Social Security.
[17:00] Security and Exchange Commission has constraints regarding employees working for corporations after their service.
[19:22] Getting to the gist of Bob Pozen’s book Too Big to Fix.
[21:59] Peer-to-Peer lending is pretty much unregulated.
[23:38] As the economy strengthens banks should lend more.
Sat, 22 October 2016
AIPIS 158 - Online Marketplace That Helps Investors Find & Compare Property Managers Rented.com with Andrew McConnell
Andrew came up with the idea for Rented.com after hearing two vacation homeowners tell horror stories of the time and hassle involved in the self-management of their properties. With degrees from Harvard College, Harvard Law School, and Cambridge University, and experience working with some of the largest companies in the world during his time at McKinsey & Co. and Axiom, Andrew is excited to apply all he has learned to the sharing economy in order to create a better experience for all.
Wed, 19 October 2016
AIPIS 157 - The Real Estate Trusts, America’s Newest Billionaires and Watch that Rat Hole and Witness with Kenneth Campbell
Kenneth D. Campbell created and edited an influential investment newsletter for twenty years; co-wrote The Real Estate Trusts: America’s Newest Billionaires, first full-length book on REITs; and co-founded a global firm managing $22 billion in assets. He is also the author of the new book Watch that Rat Hole: And Witness the REIT Revolution
Thu, 22 September 2016
It is possible to self-manage properties you have never seen.
Tue, 20 September 2016
If you are interested in growing your retirement money faster, reducing your risk paying less tax this episode is a must listen. You must align your interests with the financial institutions and the central banks as they are most powerful monetary entities in the world. As you build your income property portfolio you need to put your money in a retirement account which allows you to self-direct your funds without paying high taxes or penalties. The Solo 401k is a vehicle you can use to defer taxes and manage as a resource. Guest expert, Jeff Nabers, created the complete Solo 401k and designed an online tool so you can calculate possible risks before making major investment decisions.
Fri, 12 August 2016
Gary has spent most of his career building businesses in the real estate, hospitality, and tech sectors. Immediately before Roofstock, Gary was co-CEO of Starwood Waypoint Residential Trust (NYSE: SWAY), one of the leading Single-Family Rental companies in the US.
Sat, 16 July 2016
AIPIS 153 - Landlord Real Estate Tycoon, Rich Capitalist & Millionaire Money Game with Zbig Jan Woznowski
Zbigniew found Reality Games in October 2014 and launched Landlord mobile game in January 2015. He is also the Programming Director of Promotion of Poland 2020 of The Kosciuszko Institute. Zbigniew has over 12 years of online advertising and over 10 years of real estate experience. He founded and exited a few other companies such as Second Poland and Supremum 360: Digital Outsourcing & Advertising Service.
Sat, 9 July 2016
AIPIS 152 - Brexit, Popes and Bankers, History of Credit & Debt, From Aristotle to AIG with Jack Cashill
Jack Cashill is an independent writer and producer and, on a contractual basis, the Executive Editor of Ingram’s Magazine.
Tue, 5 July 2016
Lane Kawaoka is a City Project Engineer and Licensed Professional (PE) Civil/Industrial Engineer. Short after graduating college, during his first 5 years of his career, he supervised a traveling, union-based crew that required 100% travel away home. During this time, he traded the most important resource, time, for money.
Fri, 1 July 2016
AIPIS 150 - Intelligence for Your Life TV, the John Tesh Radio Show, Entertainment Tonight, Olympic Games, Wimbledon, and US Open Tennis with John Tesh
John Tesh’s highly successful and varied career path includes a 10-year run as anchor on Entertainment Tonight, six hit public television specials, including his landmark Live At Red Rocks in 1994, a string of #1 radio hits, his popular nationally syndicated radio show “Intelligence For Your Life” in which he has 14.5 million listeners, and a high profile advertising and marketing company. His musical accolades since releasing his debut album Tour De France in 1988 include seven million units in total sales; a Keyboard Magazine Award; a 2003 Grammy nomination for “Best Pop Instrumental Album” for his double CD The Power of Love; and gold certification for his Live At Red Rocks album.
Thu, 9 June 2016
AIPIS 149 - Bulk REO Purchases, Hard Money Loans & Financing by Friends & Family with Susan Lassiter-Lyons
Susan Lassiter-Lyons is the founder of TheInvestorInsights.com, twice voted the #1 real estate investing blog. An investor since 1994, Susan has closed more than 600 transactions and raised $26.2 million in private capital.
Sat, 4 June 2016
Jeff K. Johnson is the President of Black Commercial, Inc., one of Spokane’s largest property management and commercial real estate companies. Jeff is a licensed REALTOR® and has worked in the real estate profession since 1975.
Wed, 25 May 2016
Justin Williams, Founder of House Flipping HQ. With over 8 years of experience as a real estate investor, having flipped over 500 homes, Justin is dedicated to making House Flipping HQ the ultimate online resource for house flipping.
Fri, 20 May 2016
Jason Hartman talks with his client Greg Scott, a real estate investor living in Detroit and employee at Ford, about the current state of the Detroit real estate market, whether it might actually be a GOOD investment now, the future of self driving cars and more.
Wed, 18 May 2016
Jefferson Lilly is a mobile home park investment expert, educator, and industry consultant who has been featured in the New York Times, Bloomberg Magazine, and on the 'Real Money' television show. Prior to co-founding Park Street Partners in 2013, Mr. Lilly spent seven years investing his own capital at Lilly & Company where he acquired and continues to operate mobile home parks in the Midwest. Prior to becoming an investor full-time, Jefferson spent 10 years in sales leadership roles with several venture-backed startup companies in Silicon Valley that were acquired by Openwave Systems and VeriSign. Earlier in his career he held operational roles at Viacom and was a consultant with Bain & Company.
Thu, 12 May 2016
Marc is the founding partner and managing director of both the American Home Recovery Fund and NoteWerx, the cutting-edge note portfolio management cloud ware.
Tue, 10 May 2016
Justin Shum, CEO of Avenue, is a first time homeowner and serial entrepreneur, who previously founded ReadyChat, a leading live chat services provider for real estate industries. Justin previously founded and was CEO of 121LiveAgent, a live chat solutions provider. Through his experience at 121LiveAgent, Justin saw an unmet need in the real estate space for greater customer service, and soon after founded ReadyChat, which he currently serves as CEO. Now he has combined his business acumen and first-hand experience as a consumer to create Avenue. Avenue was named the Winner at the 2015 Realogy FWD Innovation Summit.
Thu, 5 May 2016
David T.S. Wood is a Business Leader, an Author, a Trainer, a Coach and a Humanitarian who has lived, traveled, worked in over 50 countries, and brings his passion for people, culture and the unknown to everything he does.
[5:30] “I prefer the high end flips because i think the people who are going to buy a million or 2 million dollar
[21:02] – Everything about real estate investing involves disciplines
[26:57] – “And i find kindness is one of the great methods of negotiation”
Tue, 3 May 2016
Aaron Hoos is the author of The Sales Funnel Bible, a handbook
for business owners to help them start, run, and grow a profitable
Thu, 28 April 2016
Craig Ballantyne has been the Editor of Early to Rise since
2011. He’s also a Strength & Conditioning coach in Toronto,
author of Turbulence Training, a contributing author to Men’s
Health magazine, and a member of the Training Advisory Board for
Maximum Fitness and Oxygen magazines.
Tue, 26 April 2016
Richard C. Wilson is CEO of The Miami Family Office, a $500M AUM
single family office. Richard is also the founder of Wilson Holding
Company which employs over 30 professionals and produces over $10M
a year in revenue through various operating businesses which
include Billionaire Family Office and The Family Club, the largest
membership-based family office association (FamilyOffices.com),
along with holdings in the training, single family office
management (SingleFamilyOffices.com), investment conference,
search, data research, physical bullion, private equity
(PrivatEquity.com), food, and energy industries.
Sat, 23 April 2016
Reed Goossens is a real estate entrepreneur and founder of RSN Property Group. As a native Australian, Reed moved to the U.S to pursue his career. A qualified structural engineer and project manager, Reed has been involved with large-scale commercial construction and real estate development projects worth over $500 million since 2007; in Australia, the United Kingdom, and the U.S., including the London 2012 Olympic Games. After gaining valuable experience working in the engineering and construction industry, Reed decided to pursue his passion for real estate development and investing by starting RSN Property Group.
Thu, 14 April 2016
Jared Lichtin is a real estate investor and podcaster who previously worked as a lawyer for the oil and gas industry in Appalachia, near his home in Northwest Ohio. He realized the uncertainty of his work in titling and deeding properties for the volatile industry and decided to start flipping houses. His first few projects proved profitable so he has continued to buy and flip and then he podcasts about it. He shares insider information about what to watch out for when investing in the oil and gas industry.
[2:37] Jared graduated law school, worked for a law firm for oil & gas industry and then started flipping houses after he noticed problems in the oil & gas market.
[7:14] How can you title, deed and will your oil & gas investments to others?
[13:30] Oil & gas investments are risky because there is nothing preventing the political landscape or environmental laws from changing.
[18:51] The exploration and production side of oil & gas companies is a seismic process which is technologically advanced and extremely volatile.
[24:21] It’s practically impossible to go wrong investing in real estate, if you do your homework.
[28:03] Summary and contact information for Jared.
Mentioned in This Episode:
Tue, 12 April 2016
Why invest in Orlando, Florida? There are many reasons to invest in this judicial foreclosure state, including the influx of investments by major medical companies and large corporations like Lockheed Martin. There are also business basics to the State of Florida that 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 once the real estate market corrects itself, investment properties will appreciate to their proper values.
[2:24] It’s possible to buy real estate at a low price and become cash flow positive in the Orlando market.
[6:50] Differences in price discovery, market clearing, and the foreclosure process can be attributed to judicial foreclosure states vs. non-judicial foreclosure states.
[11:21] Las Vegas may be a massively over speculated market. Its economy needs time to grow naturally.
[12:50] The state of Florida is a well-rounded city, which creates an environment for job growth. It’s time for the cyclical market to correct itself.
[19:36] The ease of enforcing contracts in Florida makes for a landlord-friendly environment.
[22:36] Our management team employs the idea of leverage and was built for investors by investors.
[23:53] A good management company works well with tenants while protecting their legal rights during an eviction.
Mentioned in This Episode:
Thu, 7 April 2016
Brian, the local market specialist in Jacksonville, Florida shares encouraging data about the city’s job market, pro-business and pro-landlord stance. He also speaks to how the city meets his 5 fundamentals of investing which are jobs, population growth, affordability, desirability and a healthy supply and demand. The State of Florida offers asset protection and has no income tax for its residents.
[2:11] Brian has 17 years of experience buying distressed housing and providing turnkey investments.
[5:06] Why invest in Jacksonville? Consider these facts, figures and the 5 fundamentals.
[9:02] Jacksonville has received high rankings from the Business Journal, and Forbes has ranked Jacksonville #3 in the U.S. for employment.
[12:19] Every 8-10 years, real estate markets in the US go through the boom, slump, and recovery cycle.
[15:20] The humble single family home is a great device for mitigating risk, this is an example of a typical deal.
[18:07] The City of Jacksonville has a pro-business and pro-landlord environment.
[20:11] The process of rehabbing involves a full renovation before the property is rented out.
[24:50] Jacksonville is currently a buyer’s market. Your investment must have a minimum of 3-5 years before planning your exit strategy.
Tue, 5 April 2016
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.
[2:34] Airbnb investors are running an active business, so the IRS imposes a 15.3% tax on the income.
[6:38] Maintenance on Airbnb properties are more time and labor intensive than a buy and hold property.
[13:18] Should Airbnb owners file a Schedule E or Schedule C at tax time?
[17:08] Are you able to depreciate the furnishings in an Airbnb rental and what is the De Minimis Safe Harbor?
[23:31] How many units do you need to qualify for the 500 material participation hours?
[27:11] Using segmented depreciation can help to depreciate your assets at a quicker rate.
[30:16] Cost segregation feasibility studies can run anywhere from $5,000 to $20,000.
[32:21] A home office is beneficial as it opens the door to many tax deductions.
Mentioned in This Episode:
Fri, 1 April 2016
Technological changes may give real estate investors better tools to access previously unavailable markets, but no level of technology will ever replace a human’s need for shelter. As long as investors keep their eyes looking forward to the future and stay on top of the increasing number of research tools available, they will successfully build a diverse, long-term wealth strategy based upon single family home investment properties.
Jason and the Real Estate Guys take a break from their real estate conference speaking engagements, to discuss predictions for the future of the real estate investment market, the influx of tenants looking for rentals and how technology is changing investors’ ability to see beyond their own backyard and experience the benefit of geo-arbitration.
[2:25] No matter what the statistics say, real estate investors have more tenants than ever before.
[5:13] There will always be a need for single-family housing.
[7:02] The labor participation rate is the lowest it’s been over the last four decades but you can’t keep the U.S.A. down for long.
[9:41] Real estate investors sometimes miss megatrends but they need to change with the market.
[12:18] How will technology change the way houses are built?
[15:00] Real estate is becoming a mature, less fragmented industry and when big money comes in, it will push prices up.
[18:44] Sophisticated investors use tools so they don’t get stuck investing in their backyard.
[21:23] Owning single family homes in 3-5 markets is a good diversification strategy
Mentioned in This Episode:
Direct download: AIPIS_133_The_Real_Estate_Guys_Robert_Helms_and_Russ_Gray.mp3
Category:general -- posted at: 12:24am EDT
Tue, 29 March 2016
Dr. David E. Goldberg is an Emeritus Professor of Engineering at the University of Illinois and a pioneer in genetic algorithm. He is the founder and president of Big Beacon and he also hosts the radio show, Big Beacon Radio. He believes that the future is more optimistic than many people think it will be and that engineering is the key to enhancing education reform.
[2:22] Evolutionary computation is the idea of combining Darwinian survival of the fittest and ideas from genetics.
[7:49] What impact does evolutionary engineering have on humans, the economy and the systems we use?
[11:53] The future can be more optimistic than what people assume it will turn out to be.
[14:06] Engineers used to be rock stars, just look at the ebb and flow of the popularity of historical engineers.
[16:14] After World War II, we turned engineers into ‘worker bees’ and now we want them to be charismatic leaders, like Steve Jobs.
[19:58] One of the interesting things we found when researching ‘A Whole New Engineer’ is that Asia may no longer be a breeding ground for engineers.
[24:12] Contact information for Dr. David Goldberg.
[25:10] Empower students with trust and they will find the courage to take the initiative which leads to real learning.
Mentioned in This Episode:
Thu, 24 March 2016
AIPIS 131 - Where Can I Buy an Inexpensive House in a Great Neighborhood? With Dr. Andrew Schiller, CEO of NeighborhoodScout
NeighborhoodScout is an online data tool you can use to make real estate evaluations a breeze. It conducts simple searches, which serve up quality information. The information is used by government agencies, real estate investors and individuals alike. Today’s guest Dr. Andrew Schiller, the creator of the site, has a Ph.D. in geography, focusing in sustainable development.
[1:54] Dr. Schiller has a Ph.D. in geography and uses data for projects on sustainable development.
[4:34] Predicting crime risk at the individual address level is possible with this software.
[5:55] The search engine component of NeighborhoodScout allows an investor to build their ideal neighborhood.
[7:35] The vacancy rate information that NeighborhoodScout delivers, is based on baseline nationwide statistics.
[13:55] Communities with good schools and low crime rates maintain their values during tough financial times.
[21:36] What is the tipping point for communities to ensure stable rentals?
[25:49] NeighborhoodScout’s information on crime is very telling. For example, Oakland, CA is both the most expensive and the most dangerous city in the U.S.
[31:00] Where can an investor buy a $100,000 house in a great neighborhood in the U.S.?
[36:17] How much is a subscription to NeighborhoodScout and how do I use it?
[37:13] The Federal Reserve and HUD use NeighborhoodScout for tax credit information.
Tue, 22 March 2016
AIPIS 130 - Leading Your Team Based on Balancing Your Leadership Capital with Victor Prince, Author of “Lead Inside the Box”
Managers of organizations typically inherit the team they are responsible for leading. Strategizing on how to effectively manage the new team can require an overwhelming amount of resources. Jason’s guest, Victor Prince, is the author of the book “Lead Inside the Box”; and he talks about a tool he created to categorize employees so that focus can be given to areas that will increase profitability without sacrificing efficiency. Victor also shares some techniques that can be used during the interview process to assist human resource departments with hiring the right individuals for the job.
[2:20] The Leadership Matrix!
[5:00] Categorizing different types of employees.
[6:16] More often than not, leaders inherit an existing team.
[7:28] How to keep employees continuing to produce for your organization.
[10:24] Managing your peers and succession planning.
[12:31] Know who you are talking to during the interview process.
[14:40] Insightful questions to ask during an interview.
[16:21] You want people to produce the results you ask of them.
[17:54] Filling the gap about the proper way to invest in people.
[18:54] Lack of leadership is the biggest issue in Washington, DC.
[20:15] Contact information for Victor.
Thu, 17 March 2016
Syndicated deals are complex negotiations between multiple partners or investors. This type of deal has a special title because it involves more than one buyer and sometimes more than one lender. Jason’s guest, Joe Fairless, chooses to invest along with other investors to show his conviction for the preferred deals. He says that the most important rule of investing at this level is to know and trust the other general partners involved in the transaction. Large deals of this nature may net ongoing cash flow or may include opt-out clauses for investors who wish to make their own terms.
[4:01] What “closing the deal” means to Joe Fairless
[6:44] Raising capital for syndication deals
[11:52] Formats, general fees and rules for raising money for specific deals
[17:46] Acquisition fees
[19:45] Asset management fees for the general partners
[20:51] Investing alongside other investors
[22:30] The importance of knowing who you are dealing with
[23:44] Ongoing cash flow
[25:18] Refinancing, long-term debt and tax implications
[27:42] A 5-7 year time horizon between deals, but an investor can opt out early
[30:10] Joe’s daily podcast is “The Best Real Estate Investing Advice Ever”
Tue, 15 March 2016
Jeff, an existing client, is doing research on buying multiple properties at once in the Chicago area. After much debate about the advantages and disadvantages, Jason gives a thumbs up in support of the venture. That is because buying multiple properties at once will save investors time and paperwork. Affordable maintenance costs, low vacancy rates and cost of living make Chicago the least expensive world class city in the U.S.
[1:45] Jeff asks Jason’s advice about investing in Chicago.
[2:16] Chicago is great but there are a few reasons why it’s not a slam dunk.
[3:45] But...the team you use is important! Pay attention to the in-house services.
[6:19] Cash flow and rent to value ratios in Chicago.
[8:48] Is a low vacancy rate a sign of low rents?
[10:47] The psychology behind raising rents for existing tenants.
[13:38] Our local market specialist in this area know what they are doing.
[14:23] Are there advantages to buying a group of properties all at once?
[17:00] Chicago is the most affordable world class city in the world.
[17:42] Rental Properties in Little Rock and Memphis versus rental properties in Chicago.
[19:45] A million shades of gray in real estate investing.
[21:37] An extreme self-management example.
[25:07] The Chicago area is a vibrant market.
Thu, 10 March 2016
AIPIS 127 – Asset Protection Laws LLCs, B Corp & Trusts with Garrett Sutton Adviser to ‘Rich Dad’ Author Robert Kiyosaki
As you are building your real estate portfolio you need to make certain you are managing and protecting your assets to the best of your ability. Garrett Sutton joins Jason today to discuss the relatively new Benefit Corporation, also known as the B-corp. He also shares changes in state taxes and how they affect Single Member LLCs and Multiple Member LLCs. They touch on the best states to incorporate in and the benefits of a trust vs. a living trust. Garrett offers a special bonus to listeners of the show.
[2:59] The Benefit Corporation
[8:06] An LLC carries a charging order protection for real estate asset protection
[11:54] The protection of Single Member LLCs in Wyoming and Nevada is degrading
[13:24] An irrevocable asset protection trust
[16:04] A trust protects assets and is managed by trustees, but a living trust does not
[19:47] Problems with the bureaucracy of California and changes in taxes
[26:50] Registered agents should file paperwork promptly
[28:17] Delaware has a strong body of case law due to being the home of most Fortune 500’s
[30:26] Contact information for Garrett - mention Jason’s name and get a $100 discount
[31:56] Garrett’s advice is to stay up-to-date and have a trusted advisor
Tue, 8 March 2016
AIPIS 126 – Harry Dent on How to Profit from The Demographic Cliff – Central Bankers Have Gone Mad and Are Creating a Huge Bubble that Will Burst
This is a must listen to episode for investors. Our guest, Harry Dent, has written over 7 books on using demographics to predict economic outcomes. Harry and Jason discuss the inevitable Chinese market crash, the deflation that is headed our way and the massive amounts of debt in the private and public sectors. For real estate buyers, it appears that the everyday house is the best place to invest for the next 3 to 4 years. We just might see the lowest interest rates on mortgage loans of this lifetime. Harry warns that the bigger the bubble the bigger the burst, and predicts we will see the Dow drop below 6000 in the coming years and fracking bonds will be crucified.
[2:24] A ‘something for nothing’ life is not realistic
[3:26] Deleveraging the debt leads to money disappearing
[4:36] Debt grew 2.7 times faster than GDP
[6:38] We are sitting on unfunded liabilities at 4 times the GDP
[10:06] Is the U.S. in a legitimate economic recovery?
[13:25] Harry’s opinions on high-end real estate
[15:26] Banks and governments made bad loans
[17:37] The greater fool theory – the Chinese are the last fools standing
[20:02] Speculation will cause the crash in China
[24:33] The U.S. fracking industry will default
[25:48] Deflation is the sign a bubble is bursting, 100 trillion dollars will disappear
[27:06] The Dow will drop to under 6,000 in the megaphone pattern
[30:15] Junk bonds will be crucified and growing default rates
[31:36] Mortgage rate will come down in 3 or 4 years
Thu, 3 March 2016
AIPIS 125 – Matt Williams – Taking the Mystery Out of Repairs, Improvements & Rehabs with Pro.com, Former CEO of Digg
The fact that U.S. homeownership rates are tumbling is great news for real estate investors! The time is ripe for cash flow oriented linear markets. And it turns out that Pro.com’s home project service engine is up and running at full capacity. I talk with Matt Williams, former CEO of Digg, about the latest and greatest tool for real estate agents and investors: Pro.com. Pro.com is a new service which gives you the cost of a pro contractor’s services to complete your home upfront, so you know exactly how much you can expect the bill to be. There were no fees exchanged for this or any of my podcasts.
[2:05] Learning the ins and outs of building marketplaces and communities at Amazon
[3:07] Digg’s V4 - An attempt at a personalized news experience
[9:39] Homeowners have access to what it costs to get their home ready for sale
[11:16] The most comprehensive pricing engine for any home project
[13:48] The problem is a lack of transparency for home services
[15:30] What costs should be broken down for the consumer
[16:47] It’s really for every single job you can imagine in the home
[19:07] Pro.com also handles the processing of payments
[20:12] Thousands of common projects and the multiple variations
[21:40] There are a lot of jobs left undone because people don’t know the price upfront
[22:16] We survey the pro after the job and post rankings
[23:06] How do real estate agents work with Pro.com?
[25:38] This free service is nationwide, right?
The Mystery of the Missing Inflation - Tyler Durden
Tue, 1 March 2016
Buying raw land from sellers who are in tax default can make a profit of up to 300%. Displaying due diligence when searching for properties by using the right web tools, understanding the area, and even financing the land yourself can open up new passive income opportunities. Mark Podolsky joins Jason today to discuss how he created a booming business in the small niche, raw land market. He shares tips and tricks you can use to start your own buy and sell business, how to find the right properties and entice potential sellers.
[2:32] Mark buys raw land at tax lien auctions and then resells the land online for a 300% profit
[5:41] The best properties are in the West and Florida
[7:01] Financing the resell for passive income
[11:12] Due diligence helps to avoid environmental issues
[14:19] How to find the right properties – start with the National Association of Counties
[21:30] A land contract, a promissory note and a purchase sale agreement
[24:09] The process of buying and selling the properties
[29:19] Moving the needle in other people’s lives via “The Land Geek”
[31:07] Raw land deal examples
Thu, 25 February 2016
Self-management tools often boast ease of use and shortcuts to save you time, but they don’t always deliver. Cozy and Landlordology are property management tools, which offer end-to-end online self-management solutions. Both tenants and property managers benefit from the monthly automatic rent collection feature, as well as the integrated application process. If you think doing a background check along with a credit report will help qualify renters’ qualifications, then sign up for Cozy today.
[2:47] Lucas teaches managers how to manage their own properties
[4:45] You need to get your message out there - try Postlets rental manager
[6:17] Hire a real estate photographer to capture great photos of your property
[11:06] Going over your general requirements before meeting at the property will save time
[12:25] A 2-year lease provides extra security for the tenant
[13:52] What is a landlord’s open house?
[15:47] Possible new tenants can submit an application as soon as they leave the property viewing
[17:40] Cozy is an end-to-end property management platform
[20:31] Rent collection can be difficult for property managers
[22:56] Property managers can garnish wages to collect back rent
[28:14] Automating your rent collection will make it easier for owner and tenant
[29:01] Resources are available on Landlordology.com
Tue, 23 February 2016
AIPIS 122 – Sharran Srivatsaa - Is it Possible to Make High-End Income Properties, Cash Flow Positive?
Buying income properties in high-end markets isn’t for everyone. First, you need to be able to raise sufficient capital to purchase the property and then secure top monthly rents from tenants. Sharran Srivatsaa, with Teles Properties, shares how his company has changed the game in the upscale market by building their own in-house software platform which fits the needs of their specific market and by creating a corporate culture of “do what you do best”. Realtors in their sales division are incented to do only the things which drive positive sales results.
[3:38] A quick history of the strategy behind Teles Properties.
[6:08] Agents want to be doing these 3 things.
[8:00] Teles launches new releases of our in-house software platform like Apple does.
[13:17] How is Teles making California income property to work?
[16:32] The real cost of adding an additional unit to each property.
[20:22] Having all of your eggs in one high-end basket.
[26:10] The Big Short movie.
[27:53] The Rochester, MN, Huntsville, AL, Raleigh-Durham, NC and Dallas, TX markets
[31:05] Raising capital for real estate investments.
[33:05] Contact Sharran at Teles.
Thu, 18 February 2016
Using your personal credit as a vehicle to obtaining business credit is unnecessary and a waste of time. It is possible for your small business to get higher credit limits by buying a shelf corporation that has been properly aged. If you are doing business in an industry deemed “risky”, it may be more difficult, but not impossible, to get business credit. Jason’s guest, Gerri Detweiler, shares little-known yet very important tips and tricks on NAVigating the business credit system; including who reports pay schedules and why it’s good to use Facebook like everyone is watching (*hint - it’s because they are).
[3:31] The reason why shelf corporations are attractive
[9:53] Leave your personal credit out of your business
[11:55] Business credit and small business loans
[14:07] Business credit reporting agencies
[17:44] The mystery which is business credit
[19:34] How do you know whether or not you have a business credit rating?
[21:12] Getting started with business credit is very easy, so why wouldn’t you do it?
[22:47] Transitioning to business credit
[23:59] Equity crowdfunding and how it gets interesting for business owners
[28:20] Character in lending
[29:16] Contact Gerri & get the book
Tue, 16 February 2016
The 40-hour workweek is a thing of the past. Corporate employees are tallying up many more hours every week, but why? If technology is supposed to be the proponent of leisure time, why do we spend so much time working, traveling to work, and getting ready for work? Today’s guest, Shaun McCloskey from Lifeonaire, says people have a default and when they find themselves with extra time on their hands they automatically do what they know, which is work. Also, they have never taken the time to consider what they want from life or to explore any hobbies. His Lifeonaire – taken from millionaire but with a life – program is focused on figuring out a person’s vision of what they want their future to be.
[2:11] Focusing on having the life you want instead of money in your account
[5:59] Some people don’t even know what they love because all they do is work
[8:30] The Four Stages of Lifeonaire
[11:27] Would you be living life differently if you only had 6 months left?
[14:40] Figuring out how much time important things take
[16:09] How the 40-hour workweek was born
[18:20] Start out by writing your vision without numbers and dollar signs
[20:05] Look for alternatives that can help you to realize your dreams more quickly
[20:54] Get the Lifeonaire book and read it today
[22:50] Contact information for Shaun
Thu, 11 February 2016
AIPIS 119 – Greg Scott Investing in Detroit – How Self-driving Cars May Change the Landscape of Real Estate in Cities Like Detroit and Make You a Nomad
Greg is a long time listener of the Creative Wealth show and purchased his portfolio properties through Jason’s channels way back in the late 2000’s. Greg heard his hometown of Detroit was battered in Jason’s property tour review episode. So he called in to set the record straight about possible opportunities in Southern Michigan. He and his wife work in the automotive industry and are successful real estate investors in several different states.
[2:45] Greg is a Jason Hartman real estate investing success story and Jason’s favorite listener
[6:01] All real estate is local
[8:23] The 11th wealthiest city in the U.S. is in Detroit
[10:59] Trends in the Detroit area
[12:56] Optimism for the city proper
[18:05] Investing in an industry that is not your bread and butter
[19:05] Greg’s PowerPoint presentation and the syndication
[25:44] Export Marketing and Product Forecasting for Ford
[26:36] The self-driving car is a project every automotive company is working towards
[29:51] Ann Arbor has a fake city to test self-driving cars
[31:42] The freedom that goes along with self-driving vehicles
[35:31] The parking real estate conundrum
[37:53] Painting a better picture of Detroit
[39:52] A flipper who became a long-term investor
Tue, 9 February 2016
AIPIS 118 – Reducing Your Capital Gains & State Taxes with Ashlea Ebeling, Attorney and Associate Editor at Forbes
Where is the best place for you to live? Did you know it may be different than the best place for you to die? There are an alarming amount of different taxes to pay depending on which state you reside in. And while you may save money because your social security income isn’t taxed in your current state, you may pay more than that amount in property taxes or estate taxes – like in New York. Even the most gifted accountants have difficulty charting the tax waters. Especially this year when dealing with a lame duck congress, who allowed tax extenders to lapse at the end of 2014. The IRS expects delays and may possibly extend the tax season to accommodate all the changes. Ashlea and Jason discuss the myriad of taxes, Roth IRAs and more, in this episode.
[2:08] The Cliff provision in the state of New York
[5:43] Look at the entire tax picture before moving
[6:34] Connecticut is the only state with a gift tax
[7:37] 4 Ways people get around a state estate tax
[9:07] Forbes interactive map of where not to die
[10:55] State by state capital gains tax and inheritance tax
[13:33] Charitable remainder trust & the Roth IRA
[15:29] Will the government change the rules in the future regarding a Roth IRA?
[17:31] Research all of your self-directed options before committing
[18:22] 2016 Tax changes and delays will make for a difficult tax season
[22:10] Find articles by Ashlea by typing her name into forbes.com
Thu, 4 February 2016
The motivation for investing in real estate income property varies greatly between individuals, institutions and private investors. Economic factors play a large role in the preferred investment vehicle each type of investor chooses. Jason’s guest, writer of The Philosophical Investor and President of CWS Capital, Gary Carmell, shares with us why he prefers variable rate financing for large, upper scale apartment complexes. He also details chapters of his book and explains how he used past real estate values and current economic indicators to reach his conclusions.
[3:40] Describing a Philosophical Investor
[6:38] Taking a step back to respond instead of react
[8:10] During a ‘Munger moment’ you go for the jugular
[9:45] People will rebuild their credit through renting
[13:20] The Philosophical Investor looks at indicators and real estate values of the past
[17:23] If rents are below replacements’ cost you have hedged your risks
[20:17] Long-term views of institutional investors are more risk/reward
[23:25] Positive characteristics of mobility and flexibility
[28:05] Future global economic prediction
[30:56] Taking interest income out of the economy
[33:45] Contact information for Gary Carmell
[35:25] A shareholder economy creates insecure growth
[37:09] Borrowing by way of the variable rate loan is not for everybody
Tue, 2 February 2016
This episode is all about taxes, and how as a real estate investor you may be able to avoid paying them. Think of how much faster you can build your wealth if you use the 30% you would be giving to the IRS to re-invest in additional properties. The government wants us to do this. And, if you are a real estate professional who owns an investment property you should not be paying taxes. If you are paying taxes, you have the wrong CPA working for you.
[2:48] Defining tax drag
[5:31] A stepped-up basis – aka no depreciation recapture for heirs
[7:10] CRT – Charitable Remainder Trust
[9:09] Life insurance policy as an investment or as asset protection
[11:31] The magic of the Real Estate Professional status
[18:50] Getting a retroactive Aggregation Election within the statute of limitations
[21:40] Effectively self-managing a distant property
[27:07] What if I have a real estate license?
[29:54] ‘Married filing jointly’ is required for US taxes
[31:24] Contact Diane for tax advice
[31:40] Pay attention to the business structure you have for your properties
[34:56] Investors need to be careful with LLCs and offshore corporations
[35:44] Depreciation is the Holy Grail to tax write-offs
[36:02] Qualifying for the IRS tax depreciation for owners of investment properties
Thu, 28 January 2016
How do families with a high net worth keep, grow and protect their wealth for future generations? They put their families to work in single, family and virtual family offices. The idea behind the resource is to allow the wealth creator of the family enough time and space to create additional wealth while everyday tasks such as investments and insurance can be handled by industry specialists. Basically, when you are ultra-rich you need someone else to manage your daily and long-term financials to avoid possible costly mistakes.
[1:41] A family office is a money management system for the wealthy
[2:26] There are 14.4K ultra-wealthy people in the world
[4:40] Family office terms: multi, single and virtual
[8:16] We are in the process of crossing the chasm to public awareness
[10:44] The reason Family Offices exist is to curb costly mistakes
[16:20] Investors can use real estate strategically to get more deal flow
[20:42] The Family Office structure should be based on core goals
[23:37] Family members run the family offices for a spectrum of privacy
[24:12] The U.S. is still the #1 place for value growth
[29:24] Traditional and creative ways to provide support to Family Offices
[32:11] Contact information for Richard
Tue, 26 January 2016
Crunching the numbers sounds easy enough, but which numbers do you use? National data doesn’t always reflect individual markets and using geographical data isn’t always a telling sign due to widespread changes in Fannie and Freddie’s level of risk. Jason and Daren take a deep dive into analyzing market data and how tagging markets as linear, cyclical and hybrid allow investors to understand good properties based on cash flow and ROI.
[2:20] National data doesn’t always reflect geographic niches
[3:59] RealtyTrac is, at its core, a data company
[6:43] Licensing and re-selling the data to other companies
[8:16] Home sales are at an 8 year high when analyzing 190 markets
[10:38] The homeownership rate helps our clients to analyze markets
[12:30] Analyzing the tax assessor information for rental properties
[14:50] Everything is relative
[18:44] Thinking of real estate markets as linear (boring), cyclical and hybrid
[24:15] A combination of jobs and universities help real estate markets
[28:41] Extend and pretend, or delay and pray markets
[31:24] Market influences are tipping towards introducing additional risk
Thu, 21 January 2016
AIPIS 113 – Financing FAQs You Need to Know & Why the World Looks to U.S. Real Estate to Create Their Wealth
Quick answers in the lightning round to all of the most important financing questions. We dig in and ask prudent questions of Joe, our financing guru. If you are looking to create your wealth through real estate investments, this is the episode for you. Down and dirty details of what it takes to get the best financing deals and the specifications you need to qualify for up to 20 properties. Expert advice – free of charge!
[2:38] How many companies can one finance at the same time?
[3:16] The first 4 properties financed need 5% down
[4:05] Financing through an LLC
[4:45] One loan, one property with vanilla residential financing
[6:14] Multiple inquiries about your credit score can lower it over time
[7:06] A LLC needs different insurance
[8:10] Is a power of attorney sufficient to close the loan?
[8:51] An attorney is not needed to close the loan
[10:20] A 2-year landlord history – Fannie Mae: No, Freddie Mac: Yes
[11:19] The minimum credit score is 620 for the first 4 properties, 720 for 5-10
[12:14] Cash out refinancing on investment properties
[14:06] You can always finance your primary residence but different guidelines may apply
[14:45] Lenders need 6 months of reserves
[16:26] Offsetting the mortgage payment based on possible rental income
[18:27] Rental income loss
[19:06 Technical refinance or delayed financing
[21:01] 100% replacement cost needed in homeowners’ insurance
[25:01] Do your due diligence but beware of multiple credit checks
Tue, 19 January 2016
AIPIS 112 – Confronting Capitalism: Real Solutions for a Troubled Economic System with Philip Kotler
This provocative conversation features best-selling author and Professor Philip Kotler. Professor Kotler’s new book, Confronting Capitalism, looks at the dark side of Capitalism in the U.S. and provides solutions to core areas, which would reverse our troubled economic system. Both Jason and Philip agree that the current government has been hijacked by the modern version of organized crime – better known as Wall Street – and that a smaller, localized government would make for a more efficient system. While Jason and Professor Kotler find difficulty agreeing on every issue, they both recognize the need to preserve the American middle class and the importance of closing tax loopholes.
[2:46] Americans live under two systems: 1) Capitalism, 2) Democracy
[3:28] The supply-side of Capitalism causes the wage/income gap
[6:26] The rich should help reduce poverty
[7:24] Does the Henry Ford wage increase really work?
[9:05] Many low-income workers are on publicly funded programs
[13:52] Factories have moved abroad along with the money
[17:49] 3 investments the U.S. needs to make: 1) Infrastructure, 2) Public schools, 3) Debt
[19:19] Closing tax loopholes – Capital Gains
[22:59] Could entrepreneurs scale businesses in the same manner if taxes were doubled?
[26:48] Big government and big business are inefficient
[28:09] Cities are the engines of growth, not the states
[31:22] Democracy is there to protect citizens both rich and poor
[33:00] Unions – Good or bad?
[34:32] The “Just” index
Thu, 14 January 2016
Many people believe the key to winning at chess is the number of moves the player is able to see in advance, but the masters will tell you it is not the case. The key to winning at chess and investing is constantly re-evaluating the moves you anticipate making. If you are truly interested in improving your financial portfolio, you should be ingesting every piece of free financial information available to you. Amateurs at both chess and investing can win by making small, incremental changes to their knowledge-base and income level.
[2:58] One piece of good advice can help you win the game
[6:34] Constantly re-evaluating your portfolio is more important than thinking about future moves
[8:25] Don’t make a move with your money if you don’t have to make a move
[10:06] Behavioral finance - People get overconfident in their decision-making abilities
[14:00] Any investment without income is a speculation
[15:14] Small advantages are worth the risk
[20:43] What exactly are Zero Coupon Bonds?
[23:01] Physical securities need to be validated before selling
[24:10] Take advantage of every free piece of information available
Tue, 12 January 2016
Finally detailed information on self-directed savings plans. This episode contains information on the costs to set-up and administer a solo 401(k), traditional and Roth IRAs and an HSA (Health Savings Account). Edwin Kelly of Specialized IRA Services also shares tips and tricks for managing your savings account while building your personal wealth. He cites two examples of new investors who were able to gain wealth for their retirement in a short period of time.
[5:13] What is the difference between a custodian and an administrator?
[8:57] Success in self-directed IRAs requires a customized approach
[12:26] Self-directed IRAs offer sufficient passive income in a short period of time
[13:45] Typical Americans can double their monthly retirement income
[18:30] Additional benefits of traditional and Roth 401(k)s
[23:01] How expensive is it to open up a solo k or a self-directed IRA?
[26:50] The HSA marries tax benefits of both the traditional IRA as well as the Roth IRA
[34:17] Invest in real estate for a cash flow machine that funds your HSA
[35:56] How easy are investment plans to administer?
[36:37] Should an investor add an LLC in an IRA?
Thu, 7 January 2016
Mark Kohler CPA just completed his third book and offers us 28 tips for tax planning and asset protection. He gives us insider information about S-corps, LLC’s and Obamacare. He wants everyone to have an exit plan for their life through a versatile revocable living trust because as much as you may not want to admit it we are all mortal. Knowing your properties and finding a balance of diversification and protection is a key component to smart real estate investing.
[2:13] 28 game changing strategies for tax and asset protection
[3:54] 3 Tips for planning
[4:55] Know the difference between ordinary income and passive income
[9:10] The 3 costs related to Obamacare
[10:32] Income property is a proven tax-favored asset class
[11:00] Healthcare strategies
[11:52] The solution is the S corporation for multiple sources of income
[13:25] LLC do not save taxes
[14:10] The Kohler Payroll Matrix
[15:46] You do not need an LLC for every rental
[17:33] Know your properties and find a balance
[19:10] Register as a foreign LLC in every state that you have property
[21:53] Don’t forget about the legal and tax planning that needs to be done
[22:20] How do these things fit into your estate plan?
[23:02] Revocable Living Trust
[27:07] A real life “Do not resuscitate” experience
Direct download: AIPIS2010920Mark_Kohler_Asset_Protection_and_Tax_Strategy_for_Real_Estate_Investors.mp3
Category:general -- posted at: 12:00pm EDT
Tue, 5 January 2016
AIPIS 108 – Marshall Saunders, Founder of Saunders Daily and One of Swanepoel’s 200 Most Powerful People in Residential Real Estate
Today we speak with Marshall Saunders of Saunders Dailey. Saunders was named one of Swanepoel’s 200 most powerful people in residential real estate and is the recipient of RISMedia’s 2013 Tech Titan award.
Saunders started pursuing his interest of community funded real estate in 2014. He thinks crowdfunding will be a major game changer for individuals who would like to invest smaller amounts of capital than normally required through traditional IPOs. He describes the history of crowdfunding, the impact of 2012’s Job Act and how banks and mortgage companies might react to this type of investment in the future.
[2:12] Crowdfunding is a game changer for investing in startups
[3:30] Democratizing the investment system
[7:56] Crowdfunding has a long history and in 2012 the Jobs Act was signed
[10:16] Title 3 of the Jobs Act will draw lines on investing in Crowdfunding opportunities
[14:20] Investment opportunities for questionable investments will grow
[17:29] One third less filling than your typical IPO
[18:00] Setting up and selling shares of LLCs via crowdfunding
[20:36] Buying equity in bulk
[22:42] Will individuals turn to crowdfunding sites to pay the mortgage of their single family home?
[24:31] Real estate crowdfunding sites raise money for debt offerings
[26:48] Mortgage companies may require higher down payments
[29:02] Do banks prefer foreclosures based on mortgage insurance payouts?