Jason speaks with Bob Pozen about what a Trump administration could mean for the US real estate market on the whole. Potential changes in the works could mean good things to small and medium sized banks, as well as increasing how much big banks lend. Bob Pozen is a Senior Lecturer at MIT’s Sloan School of Management, a Senior Research Fellow at the Brookings Institute and former Associate General Counsel for the SEC. He has two books: Extreme Productivity, and Too Big to Save.

Key Takeaways:

[2:11] Legislation that may be changed through banking system while Dodd-Frank is left as is.

[5:50] There has been too much regulation on small to medium sized banks.

[7:33] The problems are Fannie Mae and Freddie Mac are they were never public nor private.

[11:13] The FHA and VA insure 100% of the mortgages made by banks.

[11:55] More money flowing into the real estate market will cause an upward pressure on prices.

[14:46] Home buying increases when rates start to go up but then level out.

[15:28] Pozen was chosen by President Bush to join a bipartisan commission to strengthen Social Security.

[17:00] Security and Exchange Commission has constraints regarding employees working for corporations after their service.

[19:22] Getting to the gist of Bob Pozen’s book Too Big to Fix.

[21:59] Peer-to-Peer lending is pretty much unregulated.

[23:38] As the economy strengthens banks should lend more.

Websites:

www.bobpozen.com

Andrew came up with the idea for Rented.com after hearing two vacation homeowners tell horror stories of the time and hassle involved in the self-management of their properties. With degrees from Harvard College, Harvard Law School, and Cambridge University, and experience working with some of the largest companies in the world during his time at McKinsey & Co. and Axiom, Andrew is excited to apply all he has learned to the sharing economy in order to create a better experience for all.

Key Takeaways:

[3:00] Rented.com's different business model

[7:01] The process of renting your place to a management company

[9:24] The ability to estimate your return prior to buying

[13:08] What sorts of property management companies Rented.com works with

[17:26] The potential pitfalls of using Rented.com

[22:22] What sort of cut the management companies are looking to get in their deals

[24:38] How using Rented.com might impact your homeowners insurance

Website Mentioned:

www.rented.com

Kenneth D. Campbell created and edited an influential investment newsletter for twenty years; co-wrote The Real Estate Trusts: America’s Newest Billionaires, first full-length book on REITs; and co-founded a global firm managing $22 billion in assets. He is also the author of the new book Watch that Rat Hole: And Witness the REIT Revolution

Key Takeaways:

[2:26] The history of REITs

[7:16] The market of REITs

[10:55] What type of REITs Kenneth prefers

[14:50] A rundown of Kenneth's interactions with billionaires such as Sam Zell, Warren Buffett and more

[18:55] The outlook on the regulatory impact on REITs

[20:45] The impact Brexit will have on the real estate market

Website Mentioned:

www.watchthatrathole.com

It is possible to self-manage properties you have never seen.

David Merrill of Nationwide Eviction Services shares the benefits of his company’s software platform. The software allows investors who self-manage their properties to pay a small fee to file an eviction from anywhere, on-line. The company’s comprehensive website includes a calculator that can formulate a price per eviction in any state by entering a property’s zip code.

Key Takeaways:

[2:34] A software solution to the age old problem of eviction.

[5:00] Roughly, what are the costs for an eviction plus court costs in different areas of the country?

[7:59] An eviction is a two-part process, if you plan on recovering your funds.

[10:43] Which states have landlord friendly or landlord unfriendly markets?

[14:08] Smart Eviction Technology is a standardized form which adapts to the differences in local markets.

[16:25] People should standardize all of their collection efforts on all of their properties.

[18:31] Keep the lines of communication open. It pays to work with your renters before starting the eviction process  

[23:25] An online calculator shows which areas are more landlord friendly or tenant friendly based on cost per zip code.

[27:12] Contact information for David Merrill and his closing thoughts.  

Mentioned in This Episode:

http://www.nationwideeviction.com/

If you are interested in growing your retirement money faster, reducing your risk paying less tax this episode is a must listen. You must align your interests with the financial institutions and the central banks as they are most powerful monetary entities in the world. As you build your income property portfolio you need to put your money in a retirement account which allows you to self-direct your funds without paying high taxes or penalties. The Solo 401k is a vehicle you can use to defer taxes and manage as a resource. Guest expert, Jeff Nabers, created the complete Solo 401k and designed an online tool so you can calculate possible risks before making major investment decisions.  

Key Takeaways:

[2:22] The Solo 401k was based on the Pension Protection Act of 2006.

[4:26] The 3 main advantages of a Solo 401k.

[11:19] There are two qualifications which differentiate a Solo 401k from a traditional Roth IRA.  

[16:19] The Solo 401k allows you to invest $18,500 of your self-employment income.

[17:53] The IRS puts real estate investors in two categories one is a business and the other is a dealer.

[22:23] The rules of an IRA are much stricter than the rules of a Solo 401k.

[25:47] The most powerful thing an investor can do is to diversify.

[27:49] Health care costs and college tuition are impacted the most by inflation.

[28:11] The present value of money versus the future value of money and the lost opportunity costs of paying taxes on an IRA now.  

[32:42] It’s impossible to know how the government will tax retirement plans in the future.  

[38:13] Jeff Nabers’ company set up the only complete Solo 401k and designed an online tool.

Website Mentioned:

http://solo401k.com/creatingwealth

Gary has spent most of his career building businesses in the real estate, hospitality, and tech sectors. Immediately before Roofstock, Gary was co-CEO of Starwood Waypoint Residential Trust (NYSE: SWAY), one of the leading Single-Family Rental companies in the US.

Gary founded Roofstock on the belief that the Single-Family Rental sector has stuck to the old way of doing things for far too long – it’s an industry ripe for disruption.

Roofstock is the first online marketplace created exclusively for investing in leased Single-Family Rental homes that generate cash flow day one. Created by investors for investors, Roofstock provides research, analytics, and insights to evaluate and purchase independently certified properties.

Roofstock turns the old way of investing on its head, bringing transparency and efficiency to create a better way to transact. Buyers access vetted homes with current cash flow. Sellers market homes without lost income or disrupting tenants. Neighborhoods avoid signs in yards which could depress values. It’s win-win all around.

The most revolutionary aspect of the Roofstock marketplace is enabling investors to treat their real estate investments more like stock portfolios, focusing on asset allocation, rather than dealing with the hassles of researching and buying vacant homes that need to be repaired and leased.

Key Takeaways:

[1:42] What Roofstock is

[4:35] The reality of the single-family rental home investor

[7:10] Where Roofstock's inventory comes from

[10:00] The 3D Rendering Roofstock does of each home in their inventory, and what benefit it creates

[12:15] Who is there in the walk through for the property and how sellers don't have to pay for a lot of things they usually do

[15:35] The number of transactions Roofstock has been able to do in their first 18 months

[18:45] How the buying process works

[22:00] The investment fund Roofstock recently released (and who is managing it)

[25:00] Why Roofstock has properties in high end areas with RTVs below 1%

[27:30] How the valuations of the property are done

[30:10] What Roofstock does to find and certify property managers, and why investing close to where you live is an outdated idea

Websites Mentioned:

www.roofstock.com

Zbigniew found Reality Games in October 2014 and launched Landlord mobile game in January 2015. He is also the Programming Director of Promotion of Poland 2020 of The Kosciuszko Institute. Zbigniew has over 12 years of online advertising and over 10 years of real estate experience. He founded and exited a few other companies such as Second Poland and Supremum 360: Digital Outsourcing & Advertising Service.

Key Takeaways:

[2:20] How the Landlord app works

[3:35] How data mining is helping the app become more and more accurate and how it can make you a better investor

[8:00] How check-ins can increase the value of your properties, but how they've safeguarded against abuses

[10:20] Buying properties in places that you can't physically get to

[12:55] The power of crowd sourcing and apps

[16:20] Where Jan sees the future of tech and the digital divide

[18:50] The app business model and how much one MLB player has spent on the app (and isn't even the top player in the game)

[22:50] If there's a social component to the game and if people are actually meeting through it

Website Mentioned:

www.wearerealitygames.com
Find the Landlord app on iTunes and Google Play

Jack Cashill  is an independent writer and producer and, on a contractual basis, the Executive Editor of Ingram’s Magazine.

In addition to his work with Ingram’s, Jack has written for Fortune, The Wall Street Journal, The Washington Post, The Weekly Standard, AmericanThinker.com, and regularly for WorldNetDaily.

Within the last decade Jack has written seven books of non-fiction — First Strike, Ron Brown’s Body, Hoodwinked, Sucker Punch,What's the Matter with California, and Deconstructing Obama. Three of his books have cracked Amazon’s top ten list. Jack has produced a score of documentaries for regional PBS and national cable channels, including the Emmy Award-winning, The Royal Years.

Jack has a Ph.D. from Purdue University in American studies, has taught media and literature at Purdue and at Kansas City area universities, and served as a Fulbright professor in France

Key Takeaways:

[2:38] Jack's thoughts on the Brexit

[4:15] Who the base of the left are these days

[7:19] Where the breakthrough came in terms of creating a culture that would create a long term, successful economy

[9:40] Where the contempt for our culture is derived

[13:05] How greed pervaded all layers of our culture in the 2008 housing crisis, not just the lenders like the media portrayed

[16:33] How the Jewish code and the usury ban led to a helpful (but not exactly healthy) relationship between the two

[19:30] Whether the bible conflicts when it comes to credit

[21:50] What we need to make capitalism succeed

[23:31] Why we need to question the root cause of things, not just address the symptoms, or else we end up hurting the people we're trying to help

[26:16] What actually happened with TWA 800

Website Mentioned:

www.cashill.com

Lane Kawaoka is a City Project Engineer and Licensed Professional (PE) Civil/Industrial Engineer. Short after graduating college, during his first 5 years of his career, he supervised a traveling, union-based crew that required 100% travel away home.  During this time, he traded the most important resource, time, for money.

In 2009, he was able to save for an A-class rental that rented for $2200/a month in the Pacific Northwest (how embarrassing a Rent-to-Value Ratio of 0.5%!). After his 2nd acquisition of a duplex in 2012, he was looking to make a 3rd but the market was appreciating and he saw the numbers would yield negative cashflow.

With this realization, Lane converted his portfolio to markets with stable multifaceted job markets and Rent-to-Value Ratios that would yield healthy $250-$400/month spreads between the rents and expenses (mortgage, vacancy, professional management, repairs, and capital expenses).

Today Lane's portfolio consists of 11 single family homes in Birmingham, Atlanta, Indianapolis, and Pennsylvania. Jason caught up with Lane to discuss some 1031 exchange tips that Lane utilizes with his properties.

Key Takeaways:

[1:55] How Lane became interested in real estate

[4:10] Why Lane believes the stock market formula is impossible to beat or even project

[7:46] Lane's home auction experience that showed him not everyone with money is smart

[10:28] Why Lane is in the markets he's in right now

[13:00] The 45 Day Deadline with your 1031

[16:01] What you need to ask yourself before your start your 1031 exchange

[20:29] When you start approaching the end of your 1031 exchange deadline

[22:20] Filling out "To Whom It May Concern" letters, and Jason's paid off $237 tax lien from the 90s that's made his own "To Whom It May Concern" letter a part of every deal he makes

Website Mentioned:

www.simplepassivecashflow.com

John Tesh’s highly successful and varied career path includes a 10-year run as anchor on Entertainment Tonight, six hit public television specials, including his landmark Live At Red Rocks in 1994, a string of #1 radio hits, his popular nationally syndicated radio show “Intelligence For Your Life” in which he has 14.5 million listeners, and a high profile advertising and marketing company. His musical accolades since releasing his debut album Tour De France in 1988 include seven million units in total sales; a Keyboard Magazine Award; a 2003 Grammy nomination for “Best Pop Instrumental Album” for his double CD The Power of Love; and gold certification for his Live At Red Rocks album.

His advertising and marketing company, TeshMedia, handles clients such as numerous Fortune 500 companies, including General Motors, Home Depot, Macy’s, Kohl’s Petsmart, Amway, Geico Insurance and PetSmart. Tesh’s book “Intelligence for Your Life: Powerful Lessons for Personal Growth”, has spent time on the New York Times, USA Today, Publisher’s Weekly, Wall Street Journal & Amazon.com best-seller lists. The award-winning daily and weekly show he calls “purpose driven radio”, recently secured the trademarks for three more categories in their “Intelligence for....” family. “Intelligence for Your Health,” “Intelligence for Your Pets” and “Intelligence for Your Love Life” have been added to Tesh's core brand, and will be developed into stand-alone content-rich websites with products designed around the “Intelligence” Tesh and his staff have gathered in the 10 years since they launched the show.

Key Takeaways:

[4:36] How The John Tesh Radio Show found its niche and is designed to run on any format

[9:35] The importance of "picking a lane" in life and how it can lead to success

[15:15] The most important type of books John thinks you should be reading

[20:07] How John and his wife met, and why pretty women don't seem to get asked out as much

Resources Mentioned:

www.ifylondemand.com
www.tesh.com
www.teshmusic.com
Al Ries' Get Focused
Differentiate or Die