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.

Richard has spoken at over 150 conferences in 17 countries and has the #1 bestselling book in the family office industry, The Single Family Office: Creating, Operating, and Managing the Investments of a Single Family Office.  Richard has his undergraduate degree from Oregon State University, his M.B.A. from University of Portland, and has studied master’s level psychology through Harvard’s ALM program while previously residing in Boston.

Key Takeaways:

[2:20] Why you should care about what people worth $20+ million are doing with their money

[4:13] Some important terminology for dealing with family offices

[6:35] Looking back at some of the original family offices and the changes that have taken place since then

[10:49] Why there's a need for family offices

[14:11] How the middle class investor can take the framework of a family office and use it to fit their situation

[16:26] A key strategy you can take from family offices of the ultra-wealthy

[19:24] What sorts of holdings the family offices have

[22:56] Why the US is the haven for the ultra-wealthy

[26:26] Family offices, surprisingly, sometimes even go after distressed markets

[27:38] How you can find a family office to partner with in your deals

Websites Mentioned:

www.familyoffices.com

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.

Throughout recent years Reed has developed his personal portfolio of solid cashflow investment properties. He believes now is the time to enhance and utilize the power of syndication investing to purchase apartment communities across the U.S. Reed’s commitment to the development of a structured approach to researching, acquiring and managing investments provides the basis for RSN's sound operating system.

Reed and Jason discuss the US market, finding the right deals, how things get done and more.

Key Takeaways:

[3:06] The differences between US and Australian real estate

[5:47] Reed's target properties

[7:48] The markets Reed likes and where he's invested

[10:26] Looking at the costs associated with large multi-family purchases

[13:54] Reed's 4 P's

[16:49] Where you're going to actually find the deals and what kind of talk should make you leery

[20:29] Reed's first deal under contract, how he lost the deal, and how it came back

[23:59] Getting money for your first loan

Websites Mentioned:

www.rsnpropertygroup.com
Investing In The U.S. - An Aussie's Guide to U.S. Real Estate

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.

Key Takeaways:

[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:

Hartman Media

Flip Podcast

@JaredLichtin on Twitter

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.

Key Takeaways:

[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:

JasonHartman.com

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.

Key Takeaways:

[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.

Mentions:

Hartman Media

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.

Key Takeaways:

[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:

Jason Hartman

reviews@jasonhartman.com

Hall CPA LLC

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.

Key Takeaways:

[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:

Hartman Media

Real Estate Guys

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.

Key Takeaways:

[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:

Jason Hartman

Big Beacon

A Whole New Engineer

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.

Key Takeaways:

[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. 

Mentions:

NeighborhoodScout

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.

Key Takeaways:

[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.

Mentions:

Hartman Media

Victor Prince

Lead Inside the Box

Myers-Briggs

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.

Key Takeaways:

[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”

Mentions:

Hartman Media

Joe Fairless

Best Real Estate Investing Advice Ever

It’s a Whole New Business

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.

Key Takeaways:

[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.

Mentions:

Hartman Media

Jason Hartman on FB

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.

Key Takeaways:

[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

Mentions:

Hartman Media

Sutton Law Center

Loopholes of Real Estate

Rich Dad

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.

Key Takeaways:

[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

Mentions:

Hartman Media

The Demographic Cliff

The Great Boom Ahead

The Roaring 2000’s

The Great Depression Ahead

HarryDent.com

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.

Key Takeaways:

[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?

Mentions:

Pro.com

Digg.com

Andreessen Horowitz

The Mystery of the Missing Inflation - Tyler Durden

JasonHartman.com

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.

Key Takeaways:

[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

Mentions:

Hartman Media

The Land Geek

Naco

What 3 Words

We Go Look

Process Street

Frontier Properties

Zimple Money

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.

Key Takeaways:

[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

Mentions:

JasonHartman.com

Landlordology

Cozy

Craigslist

Postlets

Circlepix

Click Notices

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.

Key Takeaways:

[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.

Mentions:

Teles Properties

Hartman Media

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).

Key Takeaways:

[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

Mentions:

Hartman Media

Finance Your Own Business

NAV

Experian

Dun & Bradstreet

Kiva Zip

Corporate Direct

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.

Key Takeaways:

[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

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.

Key Takeaways:

[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 11^th 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

Mentions:

Hartman Media

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.

Key Takeaways:

[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

Mentions:

Hartman Media

Forbes

@ashleaebeling

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.

Key Takeaways:

[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

Mentions:

Gary Carmell

CWS Capital Partners

The Philosophical Investor

Hartman Media

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.

Key Takeaways:

[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

Mentions:

Hartman Media

Jason Hartman - Properties

US Tax Aid

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.

Key Takeaways:

[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

Mentions:

JasonHartman.com

Mastering the Rockefeller Habits

EO

Family Offices

The Single Family Office book

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.

Key Takeaways:

[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

Mentions:

Hartman Media

RealtyTrac

CoreLogic

Black Night

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!

Key Takeaways:

[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

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.

Key Takeaways:

[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

Mentions:

Hartman Media

Kellogg School of Management

Confronting Capitalism

Citizens United

Patriotic Millionaires

Lou Dobbs Books

pkotler@aol.com

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.

Key Takeaways:

[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

Mentions:

Rich as a King

@richasaking

Thinking Fast and Slow

JasonHartman.com

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.

Key Takeaways:

[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?

Mentions:

JasonHartman.com

Specialized IRA Services

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.

Key Takeaways:

[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

Mentions:

Lawyers are Liars

The Tax and Legal Playbook

MarkJKohler.com

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.

Key Takeaways:

[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?

Mentions:

Saunders Dailey

The World’s First Cashless Society article from Nick Giambruno

Kickstarter

SEC

Today’s guest, Alvin E. Roth, has written a book about markets. If you are wondering what type of market - as Mr. Roth tells us himself - it’s not important what type of market. It’s the market itself. He guides us through the interview discussing chapters of his book, Who Gets What – and Why, with real life examples of the organ donation market and the online matchmaking market. He even shares his thoughts on how realtors have survived in our internet-based, do-it-yourself economy.

Key Takeaways:

[2:15] The rules of a marketplace constitute its design

[5:34] Alvin Roth analyzes the surprising U.S. real estate market

[9:48] Give realtors the 6% they deserve?

[13:33] Matching markets allow you to choose and be chosen

[15:59] The market of donating organs

[18:10] What rules should apply to repugnant transactions

[21:55] The government both interferes and supports all types of contracts

[25:35] Who Gets What – and Why can be used as a field guide to markets

[26:44] How to understand signals of interest

[27:58] The matchmaking market signal experiment

[30:52] Contact information for Alvin Roth

Mentions:

Hartman Media

Who Gets What and Why

Redfin

Living Kidney Donors Network

Match

Central Florida is home to one of the biggest family vacation spots in the US. Renting single family homes, with private swimming pools, within one hour of Disney resorts is a lucrative business for foreign real estate investors. The area boasts 62 million visitors last year alone. This episode inspects ways to distinguish the good from the bad deals, and breaks down the ownership costs of a $210 nightly rental.

Key Takeaways:

[1:44] Great values inspired me to invest in Central Florida

[2:13] A common misconception is that everyone makes a fortune in real estate

[3:45] A medium-term hold is 5-7 years and a long-term is 10-15 years

[5:04] 62 million people visited Central Florida last year

[8:57] You make money on the day you buy the property and not on the day you sell it

[10:49] How to distinguish a good deal from a bad deal

[12:45] Local expert knowledge – using restaurants as an indicator

[14:30] The term, “the bank’s money”, means no skin in the game

[18:45] Paying an 8% interest rate without putting any money down

[21:09] Which banks are financing international investors?

[22:11] What’s so good about Florida?

[24:45] A vacation property that generates income while I’m not using it

[27:05] A 1600 sq. foot home for $260,000 rents for $210 a night

[28:33] Traditional management fees + rental fee + cleaning costs

[35:52] Jason’s team looks for deals with a 35% annual overall return on investment 

Mentions:

AIPIS.org

Feltrim Group

Association of International Property Professionals (AIPP)

Managing insurance policies for your entire real estate portfolio can be an administrative nightmare if the coverage is provided by multiple companies. Finding a reliable and informative insurance broker who is able to offer nationwide coverage from A level underwriters would eliminate the hassle. Today, Jason gets answers for all of your insurance questions from the brokerage firm of Ross Diversified.

Key Takeaways:

[1:44] The simplicity of one insurance provider for properties nationwide

[2:27] We have had nationwide insurance available for 30 years

[3:24] Nuances to the nationwide real estate market make it a difficult product to offer

[4:42] The underwriting companies which serve our brokerage firm

[5:52] Nationwide programs are generally done on a blanket basis

[8:57] Deductible options from one insurance company

[11:01] Getting the quote to the investor

[13:30] Our company is approved by major financiers

[15:00] Calculating insurance rates based on zip codes

[16:55] Cash value is the number one issue insurance companies have

[20:13] How are land contracts insured?

[22:51] Hard money lenders can place property coverage, but it costs a bit more

[23:38] Loss of Rent insurance

Mentions:

Hartman Media

Ross Diversified

Acceptance Indemnity

Cincinnati Insurance

Blackstone

The financial industry has their blinders on with regards to the most historically proven asset class in the world, income property. There is no governing organization that watches over real estate transactions, which is why investing in income property is still a lucrative and simple income producer. Savings vehicles such as One Participant 401Ks and IRA’s can be used as diversification platforms for entrepreneurs already investing in tangible assets such as real estate. These alternative savings avenues offer more flexibility and control compared to investing and trusting your money with large financial service organizations.

Key Takeaways:

[2:30] A plethora of investment options including IRA’s and 401Ks

[4:06] 2 Tax codes: business owner tax code and employee tax code

[6:09] Growing your money, tax deferred

[7:41] Limits of contribution for the Solo-k

[10:23] Diversify via real, tangible assets

[12:39] The IRS is not a big, dumb government organization

[15:05] Average Joe’s do not know how to handle investments

[17:02] Thou shalt maintain control

[19:55] Strategies for long-term investments

[22:37] Hoping and praying should not be part of your investment strategy

[23:20] Jeff was disillusioned by the financial industry and wanted more

[27:16] A CPA is your best bet for financial planning

[28:42] There is no governing body for real estate

[32:54] Follow the money trail

[33:31] 30% of corporate profits in the U.S. come from the financial services industry

[34:42] Contact information and how to get Jeff’s book

Mentions:

Self Directed Company

The Ultimate Guide to Self Directed Retirement Planning

The last thing you want when building your business is to be personally liable for acquired debt in the event of a down market. Many investors may not be aware of the significant differences of building business credit using personal information such as a Social Security Number versus building business credit without using personal information. Our guest, Ty Crandall is the CEO of Credit Suite, a business which builds business credit for others. He has over 16 years of experience in the finance industry and is a renowned speaker on building business credit and credit scoring.

Key Takeaways:

[2:04] What is business credit used to purchase income properties?

[3:17] Consumer credit is not designed to build a business

[5:42] If you supply your social security to a credit agency you are personally liable

[7:51] The 3 types of credit - Personal, business and bank

[9:43] Using credit to get big by using business credit

[11:23] There are a few basic steps to getting business credit

[12:54] Rent a virtual physical business address

[14:03] Build credibility via websites, phone and address

[15:40] Secure business credit cards with this method

[17:04] Vendor accounts will give you tradelines, credit profile and credit scores

[18:15] Find trade vendors who report to business credit agencies

[19:12] It is  still necessary to build credit with a vendor account

[20:45] Every major retailer will give you business credit once you have tradelines established

[23:25] Ty owned a mortgage company during its heyday & the crisis

[25:54] The key to business credit is anonymity between personal and business accounts

[26:39] Business credit reporting agencies most people don’t know about

[28:37] If you follow each step you are able to build business credit

[30:18] Get a step by step guide to building business credit from Ty’s company

[30:56] Business Finance Suite, VIP Partner Package is $3500 but for AIPIS listeners, it’s $2500

Mentions:

Credit Suite

Perfect Credit - Ty Crandall

Hartman Media

Regus

On Deck

Uline

Quill

Reliable Office Supplies

Dun & Bradstreet

Purchasing real estate investment properties can be a long and tedious process. Finding properties, researching the potential investment and calculating the profitability are all initial steps that currently require investors to use multiple databases and take time. Realty Pilot looks to systemize the real estate investment market and connect buyers with sellers with real-time offer information. The platform was built to integrate other systems and databases and give users access to multiple reports from a single interface. The system currently has 10,000 users per month and is set to grow in the near future, as additional data is added.

Key Takeaways:

[1:52] Breaking down Realty Pilot’s structure

[3:05] Back office management tools, which use centralized data

[4:22] The real estate market is changing towards a decrease in cash offers

[6:21] Real-time real estate trends

[9:50] Value versus volume

[11:19] Specific growth markets

[13:27] 10,000 offers per month

[15:36] API connects into multiple systems

[17:01] Additional systems can log in-house data

[18:18] Real estate professionals and homeowners are both notified when an offer is made

[21:10] The value disposition service, available in 2016

[22:48] Two different types of offers: soft and hard

[24:32] Regulations make buying a home, a 3-week process

Mentions:

Realty Pilot

Offer Runway

Concourse 360

zipLogix

Realstir

Hartman Media

National bestselling author, W. Bruce Cameron writes from his heart based on his true life experiences. His lighthearted and uplifting books touch our hearts with profound characters, both human and non-human. Jason and Bruce discuss how dogs transform their people with unadulterated, true love, why it’s a great idea to save a dog from a shelter and why we shouldn’t judge people who don’t love dogs.

Key Takeaways:

[1:54] Bruce’s favorite dog joke

[3:02] A Dog’s Purpose

[5:50] What does the dog’s master learn along the journey in this book?

[7:43] The Dogs of Christmas

[10:15] Bruce’s uplifting puppy rescue story

[12:14] People should relish in the love their dog gives them

[13:08] Consider rescuing a dog from a shelter

[14:52] Don’t judge people who don’t like dogs

[16:00] Contact information for Bruce

[16:23] People find the subject matter of the book charming

[17:22] Bruce’s new thriller - A Midnight Plan of the Repo-Man

[19:11] Sample rules from 8 Simple Rules

Mentions:

8 Simple Rules for Dating my Teenage Daughter Book

A Dog’s Purpose

A Midnight Plan of the Repo-Man

Look Up Video on Youtube

The examples of international real estate investing in this episode will make you run out to invest in U.S. properties. All aspects of the U.S. market seem too good to be true, compared to Australia and France. Financially speaking, 30-year fixed rate mortgages, low-interest rates and loan-to-value ratios are more attractive in the U.S.

Our guest, Matt Jones became a property investor in Australia after reading a single book cover to cover. He used his day job as a mailman to investigate properties for sale, seeing as many as a thousand homes a day. Today, he invests in joint ventures that provide passive income, allowing him to live the life he wants. Through his Property Resource Shop website, he offers DIY kits to get you started on your path to financial freedom.

Key Takeaways:

[2:04] Matt’s job as a “Postie” gave him access to thousands of properties a day

[3:10] Starting with renovations is a good way to get your feet wet in real estate

[5:51] Building relationships and having a network helped early on

[6:52] Using agents is the best way to get deals flowing

[8:11] Joint ventures allow for passive income

[10:21] Remote investing in France is difficult because no one moves

[12:00] A single family home in Brisbane Australia costs about $500,000 dollars

[13:04] Investing in real estate in France must include a capital gains tax

[15:52] The 2-minute deal assessment formula

[19:10] Extracting land if the lot of the original property is above average in size

[20:36] Principal + Interest loans in Australia with adjustable rates

[22:55] Contact Matt at Property Resource Shop

[23:17] Understanding why you would want to start investing in income property

Mentions:

Property Resource Shop

Hartman Media

Owners of unimproved land are often looking to sell their properties, but may not put their parcels on the market. Jill Dewit and Steve Butala of the Land Academy have made the process of connecting buyers and sellers spreadsheet simple. They start with set parameters which are proven profit generators. They then data mine the available properties and share the opportunities through their platforms of e-books, blogs and podcasts. They even have an education program and an online community potential investors can join to get in on the action. If you are interested in investing in tenant free, vacant land visit their website for more information.

Key Takeaways:

[2:29] What is the market for rural, vacant land?

[3:41] A niche choice to flip land

[5:04] The typical land transaction west of the Mississippi

[8:06] Zoning and property and tax assessments on vacant land

[11:58] Physical and legal access laws vary state by state 

[13:15] Researching easements and access

[13:46] The 4 A’s of purchasing vacant land

[15:30] The contents of the 2-page letter which entices the seller to consider an offer

[17:45] Using the assessed value to target sellers

[20:31] The parameters of the offer are set in advance

[22:10] We don’t offer to buy vacant land unless we can triple our money overnight

[22:48] Selling the properties to “A” list property buyers

[24:06] How do newbies get started building their lists?

[25:10] Making money on the resale while solving problems

[26:59] Contacting Land Academy

Mentions:

The Land Academy

Land Stay

Success Plant

Land and Farm

Land Watch

Hartman Media

If you are looking for a way to make a profit while positively affecting people’s lives, residential assisted living homes might be right for you. Statistics show that the American population is aging in record numbers. This aging class controls 70% of the assets in America today. The private pay assisted living investment opportunity alleviates the burden of medical care, dealing with government payouts, and provides a service needed in most states. Listen in to find out more.

Key Takeaways:

[2:18] What’s so great about assisted living?

[3:47] Gene’s assisted living program is in a single family home and licensed by the state

[6:45] Liabilities should be covered by an annual umbrella policy

[8:41] None of the medical services are provided under this design

[9:41] The resident's family members know the elder is taken care of

[10:36] Independent living, institutional living and continuous care retirement community

[11:35] Seniors control 70% of the assets in America today

[12:12] Make a higher profit by running a private pay assisted living home

[13:32] Which states have opportunities for residential assisted homes?

[18:54] Understanding the profit behind the evaluations

[20:40] Factor in the time spent for renovations and licensing

[23:13] What do you want out of your real estate investment?

[24:52] The baby boomer demographics and statistics are astounding

[25:41] Get a free report at RALacademy.com and mention Jason’s show

[26:15] Do good and do well

[27:50] The tsunami of adult care is still about 15 years out

Mentions:

Residential Assisted Living Academy

@ralacademy

JasonHartman.com

Julia Spencer is a real life example of an international income property investor with a diversified investment property portfolio. She discusses her gains and losses in tax liens, ‘buy and hold’ properties, and vacation rentals. She became a landlord out of necessity at a very young age; and even though she enjoys certain aspects of this line of work, she concludes that a good property management company pays for itself.

Key Takeaways:

[2:23] Julia designed weapon systems software before becoming a real estate investor

[3:56] Diversification is the key to Julia’s balanced portfolio

[5:25] Tax lien foreclosures can be hit or miss, find an experienced person to mimic

[7:45] You must be willing to take risks with tax liens

[8:43] A tax lien foreclosure state or a tax deed foreclosure state: what’s the difference?

[13:38] Cashflow investing or buy and hold investing?

[15:37] Understanding how to secure good property management

[18:54] Long-term tenants are common in Germany

[20:47] A stable land value in Germany, but high taxes 

[23:00] Rent to value ratio - 1% per month

[26:15] Vacation rentals, how does Airbnb compare?

[31:08] Vacation rental management offers a social aspect as well as a monetary boom

[33:31] Contact information to reach Julia

[33:51] Real Estate Secrets that Can Make You Rich

Mentions:

Julia M. Spencer

Amir Korangy’s magazine, The Real Deal, started in his apartment. It focuses on all aspects of real estate news including the architecture, the people, the deals and the money. The last page of every edition is the closing interview. He has compiled 100 of the best interviews and based the book, The Closing - Interview’s with New York City’s Titan of Real Estate, on them. He shares his insights on the amazing entrepreneurs he has met and details how most of them came from very little to create wealth simply because they love what they do.

Key Takeaways:

[1:53] The Closing Interview shows the humanity of real estate moguls

[3:27] The true successors live and breathe real estate

[5:40] Most real estate magnates were not handed anything, they bootstrapped their way through

[7:02] David Valentes’ story stands out as an inspiration

[9:55] Real Estate is a local phenomenon

[11:14] Costas Kondylis designed 86 high rises in Manhattan and is the subject of Building Stories

[13:05] Loving what they do is the common thread which links the Titans as one

[15:18] Architecture is an art form you can live in

[16:39] Donald Trump and Kondylis did 18 buildings together

Mentions:

The Real Deal

PBS Building Stories - New York Through the Eyes of an Architect

The Closing - Interviews with NYC’s Titans of Real Estate

Finding an alternative to a traditional bank loan may not be as hard as you think. In addition to hard money lenders, financing companies such as Visio Financial offer short- and medium-term limits with significant interest rates. They offer no-document loans, which simply require a credit score to secure financing. The higher your score, the lower the rate.

Key Takeaways:

[02:33] We started out as a captive lender

[04:02] Our suite of products include short- and medium-term, plus document-free financing

[06:18] We can offer loans to investors who have reached their Fannie limit 

[09:34] Buy and hold financing at 12% on a 3-year balloon

[11:50] Our borrowers have credit scores within the low 600s

[12:54] We have multiple sources of capital

[14:17] The higher your credit score the lower your interest

[14:52] Bridge financing is an interest-only product option

[16:00] Example of an innovative way to use our product

[17:54] Go to our website and tell us what you want, and you’ll get immediate pricing

[18:40] Jeff’s overall view on the economy

[21:23] What is the margin of error in flipping?

[23:31] While it may be a good time to be a landlord, it may be hard to find good rental properties

[25:15] People with great mortgages can’t make moving make sense

[27:45] Our annual survey is available on our website

Mentions:

Visio Financial Services

Econohomes

Wouldn’t it be nice to see an interesting property on the internet and send someone else halfway across the U.S. to take photos of it for you? What about checking up on one of your existing properties to inspect the hail damage first hand. WeGoLook has an army of 20,000 “lookers” who can send you photos, videos or answer specific questions. They are even able to visit the local municipality to perform a title search. 

Key Takeaways:

[1:55] How WeGoLook evolved

[4:16] We offer a basic report with photos/videos to answer any questions you have

[7:10] We offer an hourly rate for one-off services

[9:06] We also do document research, title searches and visit municipalities for customers

[11:27] We cover the U.S., the UK, Australia and Canada

[13:24] WeGoLook offers these services at these rates

[17:32] People can order services directly from our website

[18:56] We charge travel fees and research fees for those locations which are hard to reach

[22:14] We see ourselves going global in the future

[23:44] We also service fortune 500 companies as field assignment personnel

Mentions:

WeGoLook

Owning the most historically proven asset class, income property, is getting easier. This new service allows landlords to screen tenants, view credit reports and collect rents from a smartphone or tablet.  There are nominal fees built into services like debit card processing and the obtaining of a credit report which are paid for by tenants. Professional property owners now have a one-stop shop for managing their income properties, no matter where they are in the world. 

Key Takeaways:

[2:59] What exactly is Cozy and how did it start?

[6:12] A landlord has access to a tenant’s credit report without the chance of identity theft

[7:11] An agent can only use the screening tools or the full-service option

[10:45] Can a landlord can still add an application fee to cover their time spent?

[13:30] Credit reports & background checks have a fee associated with them via Cozy

[15:22] Automated Clearing House (ACH) payments are free between landlord and tenants

[17:57] Cozy eats the cost of transactions in exchange for client satisfaction

[19:12] 2 ways for a landlord to initiate payments

[21:33] Cozy’s goal is to be the best one-stop shop for realizing rent payments

[23:43] Rental markets are in the U.S. are fragmented and hard to access

[26:30] Cozy is available on your phone or tablet and new services are coming

Mentions:

Cozy

@cozyco

You don’t have to wait to start building your real estate portfolio. Many for sale by owner properties have sellers motivated by changes in their lives and problems which you may have the answer to. You may even be able to get creative with financing terms if you solve their particular issue. Your risk may be mitigated by living in the single family home you bought, while doing the right renovations for the neighborhood. If you wait to get started creating your wealth your wealth may never be created.

Key Takeaways:

[3:00] How David got started in real estate

[4:27] Doing the right renovations for the right amount of money 

[8:20] The risk is mitigated by living in the home for a while

[9:20] Positive cash flow real estate

[12:03] Allowing your real estate portfolio to give you complete financial freedom

[13:41] Commandment #5 - Thou shalt not gamble when buying property

[14:39] Vacant land sucks money out of your pocket

[15:43] If your partner can deal with some construction dust you can start your portfolio now

[18:17] We decided to remove the marginal properties from our portfolio

[20:44] A history lesson from Jason about deferred down payment plans

[24:51] Making money at negotiating the real estate deal through For Sale By Owner

[28:12] Creative financing tips that solve problems

[31:45] Rent to own is it worth it?

Mentions:

Amplified Living

Crank it Up Podcast

JasonHartman.com

The human behavior coach speaks with us today about what makes people tick and how to prioritize tasks in an effective manner. Research show us, chunking of information is necessary for people to properly digest large amounts of data. A logical flow is applied so the information is then thoroughly understood. Beverly dissects her SHIFT model which she created for one of her large corporate customers.

Key Takeaways:

[2:24] Beverly struggled to bridge the gap between her education and her careers

[4:10] Humans can only understand up to 7 pieces of information at one time

[5:33] The Shift model - The 5 steps

[6:29] Specify the desired outcome

[10:38] Highlight and categorize the obstacles

[12:03] Identify the human factor

[13:53] Find the alternative

[15:01] Take the disciplined action

[17:21] Figure out your top 3 priorities

[18:33] Not all communication comes naturally

[19:30] Contact Bev

[20:07] Have a clear destination and a clear plan to get there

Mentions:

The Collaborative

Understanding Other People

Make Your Shift

Suffolk University

The mobile home park market may be dwindling, but it doesn’t mean it’s not possible to make money by investing in one. Many existing locations have been ignored by previous owners and with some smart updates and fixes an investor is able to raise rents to market value and start making a profit. Listen in as our guest talks speaks about basic financials as well as working with brokers to find a property.

Key Takeaways:

[2:34] Jefferson is the value investing type

[4:50] Mobile home park investing is a fairly undiscovered niche

[6:41] How to find a good deal on mobile home parks

[7:37] Working with brokers to find properties

[9:17] What is the acquisition criteria to find a good property

[12:25] We’d prefer to just own the land

[14:14] The rent credit program is similar to rent to own

[15:23] Basic financials - down payment, rent info

[16:19] Mobile home park investing is the only asset class which is shrinking

[19:48] Does the government still build single family affordable housing

[21:10] I got into this business with the wrong mindset

[22:37] Example legal fees and compliance to start

[23:43] An Oklahoma property case study

Mentions:

Park Street Partners

Marcus & Millichap

Tulsa Estates

Hartman Media

We break closing costs down into small pieces to support Jason’s #1 rule of investing, thou shalt become educated, to become your own best advisor. Understanding which costs are fixed and which are variable will help you to protect yourself and allow you to become your own best advisor. We take the confusion out of calculating the fees.

Make sure to listen to future episodes for information on how mortgages are priced.

Key Takeaways:

[2:04] Thou shalt become educated to become your own best advisor

[2:29] An example of a loan quote

[3:31] Lenders over estimate certain charges

[5:27] Requirements for good faith estimates

[7:35] What are lender or origination (garbage) fees

[8:43] Using an example of $142,500, figuring out the closing costs

[10:21] Insurance charges for lenders and owners

[11:30] Lender’s title insurance is one of the highest fees on the HUD settlement statement

[11:52] Depending on your state the seller provides the clean title insurance

[12:42] Transfer stamps/taxes are local municipal charges

[14:48] Recording fees

[15:32] Points are fees to buy down the interest rates

Mentions:

Creating Wealth Encyclopedia Series

media@hartmanmedia.com

The traditional way to sell a home is to sign a contract with a well known real estate firm and agree to give them a 6% commission of your equity. But today’s internet equipped consumers are able to cut out the middle man and sell their own homes, saving themselves big dollars. If you are concerned about never having done it before our guest, Sissy Lappin, has put everything you need in one downloadable kit.

Key Takeaways:

[1:50] Innovation is rocking the real estate industry

[3:06] Paying 6% on the debt and the equity

[4:11] Confusing equity with appreciation

[6:15] Part time, untrained and unethical agents

[7:46] Sissy wrote a FSBO guide

[10:21] Mass-marketing campaigns are dead

[12:46] Justifying fees through intensive reports

[14:47] What’s included in the base package

[17:23] It’s simple to sell your own home

[18:32] 2 main documents when selling a home

Mentions:

Listing Door

Lappin Properties

Simple and Sold

National Association of Realtors

Zillow

Creating Wealth Encyclopedia Series

Diane Gardner is a certified Tax Coach and CPA. With over 30 years of experience in both tax preparation and accounting, she has quite a few tips for Jason's audience. She is the author of The Obamacare Survival Guide and Why Didn't My CPA Tell Me That? Diane talks to Jason on how small business owners can avoid some serious tax mistakes and save on thousands of dollars. 

Key Takeaways:

[2:20] What isn't my CPA telling me? 

[5:45] With the right company entity type, you might be able to write-off medical expenses through your business. 

[7:50] CPAs often don't look at how you maximize your vehicle deductions. 

[10:25] There's a difference between a tax preparation engagement versus tax planning. 

[15:15] It's never too late to talk to a CPA. You can end up saving much more money than doing it yourself. 

[17:45] How can businesses survive Obamacare? 

[22:00] Hire subcontractors or virtual assistants to cut down the number of employees in your business. 

Mentioned In This Episode:

http://www.taxcoach4you.com/ma-journey-diane-interview/

Eric McColgin shares his story about his interaction with Results Property Management, Quentin Kearney, the investor Izak Bencuya, and their respective attorneys. He believes Results Property Management is using HOA money to fund Bencuya's repairs and maintenance fees of his individual properties instead of the homeowners. Before Results Property Management was in charge of the HOA, the HOA had $40,000 in reserves. Now, it's between $5,000-$7,000. Today we find out what's happening with Creekside Village.

Key Takeaways:

[3:00] Eric was promised a tennis court, walking trails, and pond when he bought his property.  

[6:30] Four people showed up to the HOA meeting and Izak along with his attorney David Zeiler were trying to get the homeowners to give up the pool and clubhouse. 

[10:40] Quentin refused to answer Eric's questions about the walking trails and other amenities over the phone. 

[12:45] Zeiler was representing Izak in the proposal to take the clubhouse and pool. Quentin bought in Nick Porto to represent the homeowners. 

[15:50] When Eric met Quentin in person, he still refused to answer his questions. 

[17:25] The mayor of Grain Valley even told Eric that this looked wrong. 

[20:55] The HOA is picking up the bill for Izak's individual properties. 

[27:50] The HOA provider, Metrowide Building, is owned by Quentin Kearney.

[31:20] There should be two signatures whenever a check or payment is made on behalf of the HOA. 

Mentioned In This Episode:

Quentin Kearney - Results Property Management. 

Russ O'Hare has been experiencing problems with Results Property Management in Kansas City, Missouri. He is one of the home owners at Creekside Village and has a number of complaints and allegations over the way the firm has been managing the properties. He shares his story to Jason Hartman. 

Key Takeaways:

[3:50] Russ was first told that it was Curry Real Estate managing the properties, not Results. 

[8:15] Metrowide Building invoices has the same address as Results. Are they owned by the same people? 

[10:25] $2,500 was charged to the HOA for trimming trees and bushes for less than 8 hours of work. 

[16:18] Russ's wife made copies of invoices when they requested to see the books. 

[20:05] It seems the investor Isaac Bencuya and Results have some kind of arrangement with each other. 

[25:20] The club house, pool, and one of Isaac's apartment buildings run on one electric meter and that bill goes to the HOA. 

[27:15] Isaac setup a proposal for the home owners to basically give him the pool and club house. 

[30:15] Dave Zeller, Isaac Bencuyz, and Quentin Kearney said they had no affiliation with Nick Porto when Nick was representing the HOA. 

[40:05] During this proposal, Dave Zeller's attorney fees were charged to the HOA and not out of Isaac's pocket. 

Mentioned In This Episode:

Quentin Kearney – Results Property Management. 

Jason has received a number of complaints about Quentin Kearney and Results Property Management. He interviews Bobbie O'Hare to get the inside scoop of what's really going on. Bobbie has been looking directly at the Results Property Management books and has noticed a number of vague invoices. She is also having a hard time getting direct answers from the management company, which is delaying her investigation even further. 

Key Takeaways:

[2:05] There are lots of clients coming to Jason with complaints about Results Property Management. 

[5:00] Results Real Estate invoices were incredibly vague and non-descriptive. 

[6:35] The company could not provide Jason with simple receipt copies from the vendor and did not know who the vendor was who did the work. 

[15:05] Bobbie thinks the company is charging higher HOA fees and homeowners are unknowingly subsidizing the apartment fees. 

[29:15] What other discrepancies did Bobbie find during her investigation? 

[37:35] All of the invoices Bobbie received looked wrong. 

[40:40] Bobbie can't talk to her own management company anymore, because they know she's building a case against them. 

[47:00] Results has been known to intimate other management companies so that they stay away. 

[50:55] Bobbie is trying to combine a number of cases against Results to make the case even stronger. 

Mentioned In This Episode:

Quentin Kearney - Results Property Management. 

Abby Shemesh of Amerinote Xchange has overseen countless of buy and sell transactions in the mortgage note business. Abby talks to Jason on why purchasing mortgage notes is the best thing next to generating yield, key mistakes to avoid, and the importance of getting a third party property appraiser. 

Key Takeaways:

[2:00] San Francisco’s real estate is becoming a big bubble.  

[7:15] Banks are being too strict in lending money to potential investors. 

[10:10] Do your due diligence when buying notes. 

[14:45] Don't ever go with a recommend appraiser by the seller, burrower, or broker. 

[16:40] Get an attorney and consult your accountant before you purchase a note. 

[18:00] Selling notes are not for everybody. You still have other options. 

[20:15] There's still no software for to accurately calculate note prices. 

[22:30] Make sure the company you're dealing with has an internet presence and get them on the phone.  

Mentioned In This Episode:

www.note-buyer.net

In today’s AIPIS show, Jason Hartman talks to the founder of the Wealth Revolution Group, Marco Robinson. Together, they discuss topics from how realistic financial freedom really is to the importance of considering both the demographics of an area, as well as the potential of a property itself. Budding investors or entrepreneurs should be sure to listen out for this top-class industry advice.

Takeaways

02.30 – In order to achieve financial freedom, you have to really understand exactly what it is.

04.30 – For those researching demographics, the best place to start is census statistics and local databases.

07.00 – You need to look at the situation and at plans for future construction – you don’t want to invest in a property and have an identical building put up six months later.

10.00 – Economic rent is a principle which focuses on what makes a particular building special enough to warrant that higher price.

14.00 – A particular country can seem great for investing, but you have to study its dips and cycles in order to really understand what you’re committing to and when the best time to invest is.

18.00 – You can’t learn anything from mainstream education about financial freedom or investing in real estate so the only way to really learn is to be mentored by someone who’s got to where you want to be.

18.40 – For more information on Marco Robinson and his work, head to www.WealthRevolutionGroup.com