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