Tue, 31 March 2020
Today, Jason Hartman unlocks one of the most powerful investment tools as an alternative to the 1031 exchange. The great thing about coupling an unsecured loan with a qualified intermediary installment sale is that you start with a new property and a new depreciation schedule.
Before this investment skill is revealed, Jason shares an update on the promise of the ‘federal’ reserve plan to keep the economy in shape. Beware of the elevator, even the NYTimes is talking about the population density problem.
[2:10] The US ‘federal’ reserve is taking the role of buzz lightyear, to infinity and beyond. They will provide unlimited asset purchases, with no limit to what they will do to prop up the economy
[5:32] Winning is a relative game: Here’s how you do it!
[9:35] “Density is really an enemy in a situation like this (coronavirus)” NYTimes Dr. Steven Goodman, an Epidemiologist at Stanford University
[10:10] Trump is going to reopen the US
[11:00] Chinese are cleaning their money, digital currency
[12:00] Everybody needs more room if we are going to be at home all the time
[14:25] Guest, Tom
[16:45] If you do an installment sale, you pay taxes on an annual basis
[19:15] Why is a QI (qualified intermediary) needed?
[25:50] The great thing about coupling an unsecured loan with a qualified intermediary installment sale is that you start with a new property and depreciation schedule
[28:50] Don’t forget the rule of 72
[33:10] This can be a rescue from a 1031 exchange that isn’t working out
Mon, 30 March 2020
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).
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?” Jason also shares a modern day story taking place in Seattle, proving once again the risk of investing in a cyclical market.
[2:20] “No such thing as a passive investment”
[4:03] The Hartman Risk Evaluator, LTV and LTI ratios discussed
[7:28] The call from Jennifer, the insurance agent
[9:45] What factors increase improvement value
[19:38] The ingredients of a house, labor costs
[30:06] The ingredients of a house, regulations
[33:20] The ingredients of a house, cost of energy
[35:05] “How do I know the land value vs the improvement value?
[47:45] The risk when investing is in high land values
[48:26] Three types of markets: linear, cyclical and hybrid. What market is a preferred market for investing?
[53:00] Low land value equals low risk, high land value equals high risk
[58:10] Human biases: recency bias, sunk-cost bias, and certainty bias can all distract an investor
Sat, 28 March 2020
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.
[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
Wed, 25 March 2020
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.
[8:14] YouTube offers the ability to learn anything
[12:01] Chicago is the only cheap, iconic city in America
[15:50] Democrat leaders in Chicago have still been pro-business
[18:48] 2 big things that are happening in Chicago right now that are good for investors
[21:55] Evan's thoughts on the Memphis market
Mon, 23 March 2020
Jason Hartman talks with Jonathan Slain, a high growth leadership coach, founder of www.Recession.com, 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.
[2:08] How do you grow during a recession?
[5:59] You can increase your business significantly by spending into a recession
[11:39] Make sure you have a recession plan BEFORE the next recession
[14:22] Why Jonathan thinks a pullback will happen in 2020
[17:55] Examine your business to find what you can do that will make your competition irrelevant
[21:40] The big opportunities lie on the fringes of creativity
Fri, 20 March 2020
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.
[2:10] What the build-to-rent phenomenon means the builders are thinking
[5:43] Even Toll Brothers is getting into the Build-to-Rent phenomenon
[11:42] Jason's thoughts on appreciation of new home builds vs renovated properties
[17:04] A clip on the growth going on in Florida. The new Texas?