Accredited Income Property Investment Specialist (AIPIS) (general)

Today, Jason welcomes Mike Simonsen of Altos Research as they discuss the factors that keep people from selling their homes and how federal and tax policies contribute to the shortage in housing inventory! Moreover, these factors create more upward pressure on rents!

For more detailed information on the charts discussed in the show, visit AltosResearch.com.

 


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Is an imminent housing market crash reality or fiction? Jason Hartman invites apartment syndicator Kyle Kovats to the show today to talk about where the housing market was in times of crisis and where it is going now. He presents housing, mortgage and demographic data that paint a very different picture from what many doom and gloomers are saying. There is so much media sensationalism around the current housing market and lots of people predicting that it’s going to come crashing down just like it did in 2008-09, but few people are looking at the real data and making informed predictions based on the real numbers. Leading up to the 2008 financial crisis, there were three things happening: we were overbuilt, there were funny money loans, and demographics were vastly different. None of that remains true right now! We have very different market conditions and Kyle makes the case that a crash is highly unlikely.

 


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Peter Zeihan, geopolitical strategist, is back on the show with Jason Hartman to discuss the breakdown of supply chains and global manufacturing, labor shortage, inflationary pressures, generational demographics, the Russia Ukraine conflict, and so much more! 

At the moment, the labor disconnect is the single largest issue behind our inflation numbers and the worker shortage will increase every year until 2030. The advanced worker cadre of baby boomers is moving into retirement and the need for government spending to keep these people alive will skyrocket.

The very core of globalization is that anyone can go anywhere to get anything. This will change as China is no longer a reliable manufacturing partner and many companies are on their way out. Also, when we talk about the breakdown of supply chains, we’re entering into a world where raw commodity access is no longer guaranteed, so we can look forward to large portions of the world losing access to the inputs that are necessary to attempt a modern lifestyle. Take silicon for semiconductors for example; 95% of it comes from one mine in North Carolina. So it’s one thing to control global food or global energy – it’s another thing when you can control the only input that allows digitization to even theoretically happen. 

The sourcing of raw materials is critical. Now that the world’s top wheat exporter has invaded the world’s number four wheat exporter, what short and long term consequences can we expect? Not to mention that Russia is also the world’s largest exporter of fertilizer and the components necessary so people can make it. We’re in the early stages of a multi year shortage in all things agricultural.

PETER ZEIHAN is an expert in geopolitics: the study of how place impacts financial, economic, cultural, political and military developments. He presents customized executive briefings to a wide array of audiences which include, but are not limited to, financial professionals, Fortune 500 firms, energy investors, and a mix of industrial, power, agricultural and consulting associations and corporations. Mr. Zeihan has been featured in, and cited by, numerous newspapers and broadcasts including The Wall Street Journal, Forbes, AP, Bloomberg, CNN, ABC, The New York Times, Fox News and MarketWatch.

Key Takeaways:

0:00 Welcome Peter Zeihan, he just released his new book The End of the World is Just the Beginning: Mapping the Collapse of Globalization

2:12 Globalization is unique to this period in history

3:37 Mass explosion of economic activity around the world

5:01 Aging demographics around the world

6:18 China crammed 200 years of economic advancement into 40 years

10:21 Historically, capital and demographics have not been intertwined

12:40 The link between inflation capital availability and demographics - Boomers are retiring in large numbers

13:43 We have a 400,000 workers shortage and that will increase every year until 2030

15:32 The labor disconnect is the single largest issue behind our inflation numbers 

18:18 Labor market over the next 20 years 

19:40 Can China take over the world?

23:01 China’s severe lockdown measures

25:03 China in Africa

27:19 Will automation destroy jobs?

30:07 The future of manufacturing 

32:11 Was the Bretton Woods Agreement a good system? 

35:05 Peter Zeihan on industrial commodities

38:04 What’s next for the economy? 

41:00  Building material shortage

42:07 Learn more at https://zeihan.com/. Follow Peter on Twitter @PeterZeihan and check out his new book - The End of the World is Just the Beginning: Mapping the Collapse of Globalization

 


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Housing volume cycle vs. price cycle. For a housing downturn to occur, you have to have low inventory and stressed sellers. But with inventory and mortgage rates so low, Jason asks "Where is the distressed homeowner?" "Where is this so called 'crash?'"

Join Jason and Eric Basmajian of EPBMacroResearch.com for the second part of their conversation as they look at the nuances of the "housing market," discussing why he believes a housing crash is not on the horizon-yet, the market cycles happening in the cyclical markets like San Francisco, Los Angeles, New York, Chicago etc. its challenges and where it might be headed.

Key Takeaway:

0:47 Who’s driving the NAHB/Wells Fargo US Market Housing Index?

1:37 Residential Building Employees

2:31 Housing construction woes

4:37 Supply of US single-family homes

7:07 The Fed’s poison pill

8:53 Protecting the asset

9:32 Housing is the business cycle by Edward E. Leamer: Volume vs Price Cycle

11:02 Financial debt + household debt to GDP

12:07 The current volume cycle: less inventory

13:35 Price cycle is more vulnerable in the new construction market

14:55 Volume cycle in the large institutional home buyers

16:49 The monetary and fiscal policy response

18:15 Sell to get the rate of inflation down

18:51 Exploiting the last cheap labor market: Africa

 


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Join Jason today as he welcomes Eric Basmajian of EPB Macro Research to the show as they do a deep dive into the housing market. Jason also suggests that as investors we should REFRAME our mind in terms of the housing industry especially as we continue to see very low inventory.

Eric is an economic cycle analyst providing research on long-term and short-term trends in growth and inflation. With a degree in economics and experience at a quantitative hedge fund, Eric has developed a unique secular and cyclical framework to forecast major economic inflection points and the resulting impact on asset prices.

Watch the videoon YouTube HERE.

Key Takeaways:

Jason's editorial

0:47 The Right Frame

3:44 Reframing the housing market debate

5:32 It's all about investing for YEILD

7:38 5 Cities where at least half of millennials can't afford to rent a 1-bedroom

9:54 Rent- the second frame

10:26 Jason's 2 value drivers- scarcity and utility

Eric Basmajian interview

15:07 The new Paul Volcker?

16:25 Reframing the housing debate

18:26 The important thing is yield- not prices

19:13 Evaluating the volume cycle versus the price cycle

21:24 Inventory woes- there's nothing to sell! Disparities in the regional market

23:14 Real estate market as an indicator of the broader economy

26:00 Interest Rate Composite (Inverted)

28:03 MBA Purchase Index

30:12 US New Single Family Houses Sold

31:29 Months Supply: New Single Family Homes

32:25 NAHB/Wells Fargo US Housing Market Index

 


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Direct download: AIPIS_406_Housing_Crash_Predictions_with_Eric_Bassmijian_Part_1_v1.mp3
Category:general -- posted at: 9:00am EDT

Jason talks with Carla Cross from Seattle.  Carla is a real estate coach and author of: Up and Running in 30 days: A Proven Plan for Financial Success in Real Estate, On Track to Success in 30 days: Energize Your Real Estate Career To Become A Top Producer and Real Estate Agent’s Business Planning Guide. [...]

 


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Direct download: aipis_3.mp3
Category:general -- posted at: 12:00pm EDT

According to Tina Tamboer, Senior Housing Analyst at The Cromford Report, what we’re seeing in the housing market is not a correction, but rather a disruption and the next few months are going to be a very telling time. Jason Hartman and Tina put the Phoenix housing market under a microscope to see exactly what’s happening with buyers, sellers, listing prices, foreclosures, landlords, rent increases and rate hikes!

Supply is rising and prices are being reduced in the Phoenix area market as there have been a significant number of seller reductions each week in various price ranges.

We are seeing a slowdown and we're seeing the tables turn a little bit more towards the buyers in this market. We’re not seeing people waving inspections or paying quite as much over listing price as we have the past two years, but that doesn’t mean we’re in a buyer’s market. It does not mean that sale prices won’t continue on an upward trajectory. We’re just seeing sellers getting a little more accommodating and conceding to concessions.

Key Takeaways:

0:00 Welcome back Tina Tamboer, Senior Housing Analyst at The Cromford Report

0:47 Big difference in the housing market, depending on whether you're under $400,000 or over

3:21 Will Interest rate sensitivity cause people to stay in the renter pool?

5:15 Upward pressure on rents

6:39 Adjust your expectations and settle for less

8:34 When supply rises like this, sellers have to adjust their expectation on price also

11:09 Are these price reductions real market value reductions?

13:53 List prices down and days on market up

16:21 More houses under contract than what's available for sale under $600K

19:30 Scottsdale home sold overnight for $400K over list price

21:07 Median mortgage payments are actually quite low historically

23:50 Crash in the auto industry as soon as the manufacturers catch up

26:11 Mortgage rates cannot be predicted

26:50 Interest rates have gone down at the end of every recession historically

28:43 Where do you expect incomes to go in the future?

30:43 What we have right now is not a correction, but a disruption

34:17 Phoenix area foreclosures are still below pandemic levels

39:25 Learn more at CromfordReport.com

 


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Is the housing market at an inflection point? Tina Tamboer, Senior Housing Analyst at The Cromford Report says there has been a significant shift, specifically in supply and demand creating a very interesting dynamic right now in the greater Phoenix area, one of the nation's hottest markets. Are things becoming more favorable to buyers? What about investors? Is this seller’s market finally over?

Phoenix is a boom and bust type of market nowadays, but today is different from the last housing market crash. Whatever your residual anxiety over what you went through during that period of 2005, all the way to 2008, ‘09 and ‘10, you have to put those emotions aside. Emotions are not facts and you have to lean into the numbers to learn what's happening today.

If you rely on the numbers, you’ll see that shifts in supply and demand affect each range of the market differently. Somebody experienced on the higher end of the market is going to be different from somebody who's experienced on the lower end of the market and you have different players. People on the investment side of the market are having to adjust quickly as well.

Key Takeaways:

0:00 Welcome Tina Tamboer, Senior Housing Analyst at The Cromford Report

1:11 Shift in supply and demand affects each range of the market differently

2:00 Inventory is going up in different amounts in different markets

4:26 Affordability in the Phoenix Metro area

5:37 The interest rates have gone up so fast, the lending community can’t keep up

6:12 The difference between a crash and a correction

7:30 Interest rates coming down at the end of a recession

9:39 In RE investing, you can continually renegotiate your deal

10:48 Why this market is different from the last crash

13:28 Measuring housing supply and demand

15:37 Phoenix is a boom and bust type of market nowadays

17:14 New listings increasing sharply

18:09 Number of closings in the great Phoenix area

22:47 What’s happening in each market segment - below 400K and above 400K

23:35 Tune in for part 2 on the next episode! Learn more at CromfordReport.com

 

 


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Direct download: AIPIS_403_Cromford_Report__Is_the_Sellers_Market_OVER_Tina_Tambor_v1.mp3
Category:general -- posted at: 12:37pm EDT

Jason Hartman welcomes back Brandon Hall, CEO of Hall CPA to talk about tax strategies for real estate investors. If you're a real estate investor, you really have to know the passive loss rules - you can’t afford not to! As Jason always says, taxes are the single largest expense in most people's lives, yet people spend so little time understanding the tax code and learning how they can benefit from it.

Brandon Hall shares multiple strategies and educates you on the ways you can significantly reduce and potentially even eliminate your tax bill through short term rentals and the passive activity loss rules of Section 469.

Don’t miss this SPECIAL OFFER on Brandon Hall’s Tax Smart Foundation course at JasonHartman.com/taxsmart! Start your education today and use promo code HARTMAN for 50% off!

Key Takeaways:

0:00 Welcome Brandon Hall, CEO of Hall CPA and TaxSmart Investors to talk about tax strategies for real estate investors

0:46 Taxes are the single largest expense in most people's lives

2:16 Brandon Hall, CPA, Tax Smart Foundation

3:13 Long term and short term rental tax loopholes

4:45 Section 469 of the Internal Revenue Code: passive activity loss rules

6:43 RE taxes when you sell a property

8:16 Depreciation recapture

9:03 Cash flow today that you're not paying tax on

10:14 Tax loss from your rental real estate - passive and non passive income

13:51 Most real estate is going to produce net operating income positive cash flow, while simultaneously producing a tax loss

14:30 Use your suspended tax losses from rental real estate to protect my tax benefit

16:20 Investing in short term rentals and real estate professionals

17:29 A short term rental is not a rental activity under Section 469

19:56 Top three material participation tests

21:06 Start self managing your rentals with software

22:58 Self managing is all about systems

23:43 The huge benefit of 1031 exchange

24:58 Qualifying as a real estate professional

28:46 Excess business loss rules

31:33 Bringing forward depreciation deductions through cost segregation

32:21 Losses can always offset business income or rental income

33:30 Biden tax plan

34:30 SPECIAL OFFER on Brandon Hall’s Tax Strategy Foundation course at JasonHartman.com/taxsmart! Use promo code HARTMAN for 50% off!

JasonHartman.com/TaxSmart

 


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It takes a lifetime to build trust, and a minute to lose it. Jason Hartman welcomes Todd Duncan, author, speaker and the world’s leading authority on trust! People thrive on trust and the bigger the financial decision, the more trust is necessary. How can you create that?

Todd also reminds us that nobody gets a paycheck for being busy! Managing your time and mindset, especially during difficult times is essential. When you orient your mind around goodness, gratitude, joy and the fact that you get another day, happiness and success are the byproducts.

THE WORLD'S LEADING AUTHORITY ON TRUST

Todd Duncan is an American author and speaker. According to CNN, Todd Duncan is “the Tony Robbins of the mortgage industry.”

He is the author of 17 books, including the New York Times Bestsellers Time Traps: Proven Strategies for Swamped Sales People and High Trust Selling: Make More Money In Less Time with Less Stress.

ToddDuncan.com

Key Takeaways:

0:49 Welcome Todd Duncan - Author, Speaker and the World's Leading Authority on Trust

1:58 If you don't connect, you can't convert - high trust selling

1:57 Conversational productivity and building trust - ask questions you've never asked

8:32 What the research says about establishing trust

9:44 Managing your time and scaling connections

11:46 Marketing Rebellion by Mark Schaefer

13:18 Flipping houses vs buy and hold

15:07 Choosing the right business relationships

16:51 When you become commoditized, you have no pricing power

18:44 Time management and the myth of multitasking

21:47 What is vital vs what is urgent

22:26 Stephen Covey and reinventing your entire business productivity

23:58 What you do versus who you are

26:12 Financial success and mental health

30:18 Orient your mind around goodness, gratitude and joy

32:59 Validating from the inside

33:55 The right attitude for tough times

35:48 Having perspective during difficult times

37:46 The importance of mentors

39:48 Using fear to your advantage

41:11 Learn more at https://toddduncan.com/

 


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