1 00:00:02,060 --> 00:00:05,540 (Transcribed by TurboScribe.ai. Go Unlimited to remove this message.) Welcome to the Business Credit and Financing Show. 2 00:00:06,020 --> 00:00:08,460 Each week, we talk about the growth strategies 3 00:00:08,460 --> 00:00:10,260 that matter most to entrepreneurs. 4 00:00:11,020 --> 00:00:13,600 Listen in as we discuss the secrets to 5 00:00:13,600 --> 00:00:16,400 getting credit and money to start and grow 6 00:00:16,400 --> 00:00:17,240 your business. 7 00:00:17,460 --> 00:00:19,820 And enjoy as we talk with seasoned business 8 00:00:19,820 --> 00:00:22,680 owners, coaches, and industry leaders on a variety 9 00:00:22,680 --> 00:00:25,700 of topics from advertising and marketing to the 10 00:00:25,700 --> 00:00:28,140 nuts and bolts of running a highly successful 11 00:00:28,140 --> 00:00:28,720 business. 12 00:00:29,020 --> 00:00:31,340 And now, to introduce the host of our 13 00:00:31,340 --> 00:00:35,300 show, financial expert and award-winning author, Ty 14 00:00:35,300 --> 00:00:36,020 Crandall. 15 00:00:36,600 --> 00:00:38,000 Hello, and thanks for joining us today. 16 00:00:38,080 --> 00:00:39,700 I'm super excited you could be here because 17 00:00:39,700 --> 00:00:41,540 today we're talking about the key strategies you 18 00:00:41,540 --> 00:00:43,760 really need to know to create long-term 19 00:00:43,760 --> 00:00:45,580 wealth with real estate. 20 00:00:45,800 --> 00:00:47,440 So maybe you're just trying to break into 21 00:00:47,440 --> 00:00:48,180 real estate investing. 22 00:00:48,320 --> 00:00:50,320 Maybe you're already doing it right now. 23 00:00:50,700 --> 00:00:52,860 And to have this conversation, either way, I've 24 00:00:52,860 --> 00:00:55,780 brought the foremost expert on what's going on, 25 00:00:55,840 --> 00:00:57,820 where we're going, and on really how to 26 00:00:57,820 --> 00:00:59,560 tap into this the right way to create 27 00:00:59,560 --> 00:01:02,380 significant wealth for you in your life. 28 00:01:02,780 --> 00:01:03,660 And this is Jason Hartman. 29 00:01:03,739 --> 00:01:05,420 So Jason is actually a successful real estate 30 00:01:05,420 --> 00:01:08,220 investor, entrepreneur, and educator with a proven track 31 00:01:08,220 --> 00:01:09,420 record in his industry. 32 00:01:09,580 --> 00:01:12,220 Having been involved in thousands of different real 33 00:01:12,220 --> 00:01:15,320 estate transactions and owning properties across 11 different 34 00:01:15,320 --> 00:01:18,260 states and 17 cities, he has created the 35 00:01:18,260 --> 00:01:21,700 complete solution for real estate investors, which is 36 00:01:21,700 --> 00:01:24,800 a comprehensive system that provides investors with education, 37 00:01:25,060 --> 00:01:28,100 resources, and tools to be informed and make 38 00:01:28,100 --> 00:01:29,800 great decisions and build wealth. 39 00:01:30,120 --> 00:01:31,720 Now, Jason began his career at 19 while 40 00:01:31,720 --> 00:01:34,100 still in college, quickly becoming one of the 41 00:01:34,100 --> 00:01:36,540 top 1% of realtors in the United 42 00:01:36,540 --> 00:01:36,900 States. 43 00:01:37,440 --> 00:01:39,440 He went on to purchase and expand an 44 00:01:39,440 --> 00:01:42,460 Irvine, California brokerage, which was later acquired by 45 00:01:42,460 --> 00:01:43,280 Coldwell Banker. 46 00:01:43,400 --> 00:01:46,340 Now today, as CEO of Empowered Investor and 47 00:01:46,340 --> 00:01:49,240 Real Estate Tools, he helps investors identify and 48 00:01:49,240 --> 00:01:51,120 acquire income properties in the best U.S. 49 00:01:51,220 --> 00:01:54,080 markets using the area agnostic approach. 50 00:01:54,080 --> 00:01:57,460 Now, through his Creating Wealth podcast and educational 51 00:01:57,460 --> 00:02:00,360 events, Jason has empowered hundreds of thousands of 52 00:02:00,360 --> 00:02:04,580 people worldwide, sharing insights on financial literacy, real 53 00:02:04,580 --> 00:02:07,060 estate investment, and personal empowerment as well. 54 00:02:07,479 --> 00:02:10,039 He is passionate about breaking the cycle of 55 00:02:10,039 --> 00:02:14,400 financial independence and helping others achieve financial freedom 56 00:02:14,400 --> 00:02:16,900 through smart real estate strategies. 57 00:02:17,020 --> 00:02:17,980 Jason, welcome back. 58 00:02:18,400 --> 00:02:19,240 Hey, thanks, Ty. 59 00:02:19,300 --> 00:02:19,980 It's good to be here. 60 00:02:20,360 --> 00:02:21,280 Yeah, it's good seeing you, man. 61 00:02:21,280 --> 00:02:22,640 It's been a while since we've seen each 62 00:02:22,640 --> 00:02:22,740 other. 63 00:02:22,740 --> 00:02:23,840 But I know you're down hanging out in 64 00:02:23,840 --> 00:02:26,060 Miami right now, and I appreciate you making 65 00:02:26,060 --> 00:02:26,880 time to talk to us. 66 00:02:27,380 --> 00:02:28,000 Yeah, my pleasure. 67 00:02:28,160 --> 00:02:29,620 I do keep up with you on Facebook, 68 00:02:29,760 --> 00:02:29,920 though. 69 00:02:31,560 --> 00:02:32,500 I appreciate it. 70 00:02:32,520 --> 00:02:34,260 Yeah, we don't see each other as much, 71 00:02:34,320 --> 00:02:34,860 but it's still good. 72 00:02:35,020 --> 00:02:36,620 That's what's nice about social media is we 73 00:02:36,620 --> 00:02:37,740 still get a chance to catch up about 74 00:02:37,740 --> 00:02:38,980 what each other are doing. 75 00:02:39,600 --> 00:02:40,340 So what do you think? 76 00:02:40,340 --> 00:02:42,340 You have a big audience that you teach. 77 00:02:42,860 --> 00:02:44,120 What are some of the, where do you 78 00:02:44,120 --> 00:02:45,980 kind of get on the starting point of 79 00:02:45,980 --> 00:02:47,620 building wealth with real estate? 80 00:02:48,120 --> 00:02:49,180 What do you think is one of the 81 00:02:49,180 --> 00:02:51,120 points that keeps people back? 82 00:02:51,120 --> 00:02:52,680 Because we all know real estate's a great 83 00:02:52,680 --> 00:02:53,380 way to build wealth. 84 00:02:53,740 --> 00:02:55,140 So many people don't do it. 85 00:02:55,260 --> 00:02:56,760 What do you find is a barrier with 86 00:02:56,760 --> 00:02:59,500 people starting to use real estate as a 87 00:02:59,500 --> 00:03:00,260 tool to build wealth? 88 00:03:00,600 --> 00:03:02,660 I think the biggest barrier is really the 89 00:03:02,660 --> 00:03:05,520 mindset of the person who is the potential 90 00:03:05,520 --> 00:03:08,260 investor, who wants to build wealth. 91 00:03:08,480 --> 00:03:12,480 And I find that the biggest hurdle, the 92 00:03:12,480 --> 00:03:16,360 biggest setback for most people is they keep 93 00:03:16,360 --> 00:03:18,480 trying to time the market. 94 00:03:18,480 --> 00:03:22,100 And there are always reasons, at any time 95 00:03:22,100 --> 00:03:25,820 in history, in every asset class, there are 96 00:03:25,820 --> 00:03:28,280 always reasons to go for it and reasons 97 00:03:28,280 --> 00:03:29,700 you might not want to go for it, 98 00:03:29,880 --> 00:03:30,540 you know? 99 00:03:30,960 --> 00:03:33,920 But what people need to realize, Ty, is 100 00:03:33,920 --> 00:03:36,500 that income property is the most historically proven 101 00:03:36,500 --> 00:03:38,620 asset class in the entire world. 102 00:03:38,940 --> 00:03:42,340 And trying to time it is just really 103 00:03:42,340 --> 00:03:43,220 a fool's errand. 104 00:03:43,620 --> 00:03:45,540 There are so many doomers out there, and 105 00:03:45,540 --> 00:03:48,520 those people, those doomers, have the highest ratings. 106 00:03:49,020 --> 00:03:50,760 If you listen to Peter Schiff, if you 107 00:03:50,760 --> 00:03:53,080 listen to any one of a number of 108 00:03:53,080 --> 00:03:54,080 doomers, right? 109 00:03:54,240 --> 00:03:56,940 They have the big audience because the human 110 00:03:56,940 --> 00:04:00,900 mind is trained to hone in on negativity. 111 00:04:01,320 --> 00:04:03,940 And that was a survival mechanism for eons 112 00:04:03,940 --> 00:04:07,600 before our discussion today, because we lived before 113 00:04:07,600 --> 00:04:11,320 the Industrial Revolution in an era of scarcity. 114 00:04:11,780 --> 00:04:14,260 And when the Industrial Revolution came along, it 115 00:04:14,260 --> 00:04:15,899 created an era of abundance. 116 00:04:16,160 --> 00:04:18,480 And then the information revolution came after that. 117 00:04:18,560 --> 00:04:20,019 And now I guess you could even argue 118 00:04:20,019 --> 00:04:22,300 we're in the AI revolution, which is also 119 00:04:22,300 --> 00:04:25,520 information, but kind of a new variety of 120 00:04:25,520 --> 00:04:25,680 it. 121 00:04:25,920 --> 00:04:28,320 And we live in a truly abundant world. 122 00:04:28,580 --> 00:04:31,100 And it is something that people just need 123 00:04:31,100 --> 00:04:31,580 to understand. 124 00:04:31,660 --> 00:04:34,100 They need to overcome their own psychology. 125 00:04:34,800 --> 00:04:36,880 That is the biggest issue. 126 00:04:37,200 --> 00:04:38,200 That's the biggest hurdle. 127 00:04:38,500 --> 00:04:40,500 And also they need to realize that income 128 00:04:40,500 --> 00:04:45,180 property, unlike most investments, is a multidimensional asset 129 00:04:45,180 --> 00:04:45,780 class. 130 00:04:46,180 --> 00:04:48,360 So in most investments, the whole game is 131 00:04:48,360 --> 00:04:50,480 buy low, sell high, right? 132 00:04:50,760 --> 00:04:51,460 End of discussion. 133 00:04:51,620 --> 00:04:53,720 Whether it be precious metals, non-dividend paying 134 00:04:53,720 --> 00:04:56,840 stocks, cryptocurrencies, that's the game. 135 00:04:56,960 --> 00:04:59,660 And then some, say a dividend paying stock, 136 00:04:59,760 --> 00:05:02,100 it's buy low, sell high, get some dividends 137 00:05:02,100 --> 00:05:02,780 in between. 138 00:05:03,180 --> 00:05:06,400 But income property has at least six dimensions 139 00:05:06,400 --> 00:05:06,880 to it. 140 00:05:07,020 --> 00:05:08,980 And so you make your money in a 141 00:05:08,980 --> 00:05:11,160 lot of different ways and you can adjust 142 00:05:11,160 --> 00:05:13,460 your strategy depending on the type of market 143 00:05:13,460 --> 00:05:13,960 you're in. 144 00:05:14,080 --> 00:05:16,780 You are one of, if not the most 145 00:05:16,780 --> 00:05:19,500 well-renowned educators in the space to investors. 146 00:05:19,840 --> 00:05:21,400 So what are some of the core principles 147 00:05:21,400 --> 00:05:24,180 that you're teaching your students when they're kind 148 00:05:24,180 --> 00:05:25,180 of going down this? 149 00:05:25,360 --> 00:05:26,680 Because there's a lot of options, like just 150 00:05:26,680 --> 00:05:29,380 asset classes within real estate investing itself. 151 00:05:29,420 --> 00:05:30,120 There's so many options. 152 00:05:30,200 --> 00:05:31,640 I think it is almost overwhelmed. 153 00:05:31,840 --> 00:05:32,900 So what are some of the core principles 154 00:05:32,900 --> 00:05:34,000 that you're teaching your child? 155 00:05:34,180 --> 00:05:36,220 Yeah, so we like single family homes. 156 00:05:36,240 --> 00:05:37,020 That's our favorite. 157 00:05:37,200 --> 00:05:39,000 But I would broaden that a little bit 158 00:05:39,000 --> 00:05:40,800 to say just housing in general. 159 00:05:41,180 --> 00:05:43,660 Obviously apartments have been pretty tough for the 160 00:05:43,660 --> 00:05:44,500 last few years. 161 00:05:44,940 --> 00:05:46,660 A lot of people got in sort of 162 00:05:46,660 --> 00:05:49,400 over their head with apartment complexes and so 163 00:05:49,400 --> 00:05:49,760 forth. 164 00:05:49,900 --> 00:05:52,360 But I think they've probably bottomed out or 165 00:05:52,360 --> 00:05:54,420 they're close to bottoming out in terms of 166 00:05:54,420 --> 00:05:55,240 that market. 167 00:05:55,520 --> 00:05:58,180 Obviously the office market is absolutely terrible. 168 00:05:58,500 --> 00:05:59,960 You know, that we've all heard about that 169 00:05:59,960 --> 00:06:01,440 because the remote working era. 170 00:06:01,720 --> 00:06:03,460 And we just like housing because at the 171 00:06:03,460 --> 00:06:06,000 end of the day, housing cannot be outsourced. 172 00:06:06,000 --> 00:06:10,060 If you need office space and you run 173 00:06:10,060 --> 00:06:11,780 a call center, you can move that call 174 00:06:11,780 --> 00:06:13,020 center to anywhere in the world. 175 00:06:13,360 --> 00:06:15,060 And certainly companies have done that. 176 00:06:15,140 --> 00:06:17,140 So that lessens the need for office space. 177 00:06:17,460 --> 00:06:21,040 Shopping or retail property use can be outsourced 178 00:06:21,040 --> 00:06:21,660 to the internet. 179 00:06:21,660 --> 00:06:23,420 And it has been for a couple of 180 00:06:23,420 --> 00:06:26,260 decades now, lessening the need for retail properties. 181 00:06:26,400 --> 00:06:28,300 And so we've seen shopping centers go through 182 00:06:28,300 --> 00:06:29,740 a really tough time. 183 00:06:29,960 --> 00:06:31,180 But at the end of the day, everybody 184 00:06:31,180 --> 00:06:32,380 needs a place to sleep. 185 00:06:32,720 --> 00:06:33,480 They need a home. 186 00:06:33,480 --> 00:06:37,080 And that's why housing is my absolute favorite 187 00:06:37,080 --> 00:06:37,760 asset class. 188 00:06:37,840 --> 00:06:39,220 Now there are many ways to approach it. 189 00:06:39,320 --> 00:06:41,760 And we teach a lot of strategies on 190 00:06:41,760 --> 00:06:43,820 my podcast and on my YouTube channel. 191 00:06:44,140 --> 00:06:46,940 One is inflation induced debt destruction, which is 192 00:06:46,940 --> 00:06:48,280 like this hidden wealth creator. 193 00:06:48,480 --> 00:06:50,160 I trademarked that term many years ago. 194 00:06:50,360 --> 00:06:52,180 And that's made me rather famous. 195 00:06:52,420 --> 00:06:56,940 I created a methodology to mitigate risk called 196 00:06:56,940 --> 00:06:59,460 the Hartman Risk Evaluator, which is based on 197 00:06:59,460 --> 00:07:01,740 what I call the LTI ratio. 198 00:07:01,740 --> 00:07:04,540 We've all heard Ty of the LTV ratio, 199 00:07:04,720 --> 00:07:06,400 the loan to value ratio, but this is 200 00:07:06,400 --> 00:07:08,680 the land to improvement ratio. 201 00:07:09,080 --> 00:07:10,720 And it's a way that people can really 202 00:07:10,720 --> 00:07:13,120 mitigate downside risk when looking at a real 203 00:07:13,120 --> 00:07:13,760 estate deal. 204 00:07:14,100 --> 00:07:17,020 And all sorts of things, standardizing data, how 205 00:07:17,020 --> 00:07:19,780 to read a proforma, why you should use 206 00:07:19,780 --> 00:07:23,080 one specific proforma and not deviate from it. 207 00:07:23,300 --> 00:07:25,420 So you've standardized your data and you're much 208 00:07:25,420 --> 00:07:27,040 less likely to make mistakes that way. 209 00:07:27,200 --> 00:07:28,520 Tell me a little bit more about LTI, 210 00:07:28,660 --> 00:07:30,180 because I think that that's something that people 211 00:07:30,180 --> 00:07:31,900 are really looking at is how can they 212 00:07:31,900 --> 00:07:34,100 get in to real estate investing while minimizing 213 00:07:34,100 --> 00:07:34,620 the risk? 214 00:07:34,920 --> 00:07:37,400 Yeah, so about 20 years ago, when I 215 00:07:37,400 --> 00:07:41,540 was first becoming a nationwide investor, before that 216 00:07:41,540 --> 00:07:43,360 I had lived in Southern California most of 217 00:07:43,360 --> 00:07:45,480 my life and I was just investing locally. 218 00:07:45,820 --> 00:07:48,380 But what I didn't know about Southern California 219 00:07:48,380 --> 00:07:51,140 is that I was basically speculating. 220 00:07:51,480 --> 00:07:53,820 We divide the country and the world into 221 00:07:53,820 --> 00:07:58,320 three types of markets, linear markets, cyclical markets, 222 00:07:58,760 --> 00:08:00,020 and hybrid markets. 223 00:08:00,020 --> 00:08:02,960 And so the markets that get all the 224 00:08:02,960 --> 00:08:05,200 attention are the cyclical markets. 225 00:08:05,640 --> 00:08:07,900 And maybe I illustrate it this way. 226 00:08:07,980 --> 00:08:10,840 If you're looking at a chart with appreciation 227 00:08:10,840 --> 00:08:14,200 or depreciation over time, you'll have a cyclical 228 00:08:14,200 --> 00:08:16,700 market which will have glorious highs and really 229 00:08:16,700 --> 00:08:17,420 ugly lows. 230 00:08:17,560 --> 00:08:19,920 It's like a rollercoaster, that chart, okay? 231 00:08:20,240 --> 00:08:22,420 A linear market though is pretty smooth. 232 00:08:22,500 --> 00:08:25,180 It has very small highs and lows and 233 00:08:25,180 --> 00:08:27,080 it just has that upward progression. 234 00:08:27,280 --> 00:08:29,600 And what I'm talking about here is appreciation 235 00:08:29,600 --> 00:08:30,720 or depreciation. 236 00:08:30,960 --> 00:08:32,559 A hybrid market is the name would implies 237 00:08:32,559 --> 00:08:33,840 in between the two. 238 00:08:34,260 --> 00:08:36,480 So what markets are cyclical? 239 00:08:36,820 --> 00:08:38,640 Well, the markets that get all the attention 240 00:08:38,640 --> 00:08:39,260 are cyclical. 241 00:08:39,480 --> 00:08:41,120 They are places like the West Coast of 242 00:08:41,120 --> 00:08:44,260 the United States, the expensive Northeastern markets, New 243 00:08:44,260 --> 00:08:48,080 York, Washington DC, Boston, South Florida, where I'm 244 00:08:48,080 --> 00:08:50,300 from and where, well, you're not exactly South 245 00:08:50,300 --> 00:08:51,040 Florida, but close. 246 00:08:51,200 --> 00:08:54,420 And so South Florida, very cyclical market, glorious 247 00:08:54,420 --> 00:08:56,220 highs, ugly lows, okay? 248 00:08:56,220 --> 00:09:01,120 And high land values and low or bad 249 00:09:01,120 --> 00:09:01,440 cashflow. 250 00:09:02,760 --> 00:09:04,120 So we like linear markets. 251 00:09:04,560 --> 00:09:05,740 This is most of the country. 252 00:09:05,980 --> 00:09:08,960 What Hillary Clinton years ago affectionately called, I'm 253 00:09:08,960 --> 00:09:11,580 joking, not affectionately, but the flyover states, right? 254 00:09:11,720 --> 00:09:13,260 That's most of the country and most of 255 00:09:13,260 --> 00:09:15,060 the world is a linear market. 256 00:09:15,340 --> 00:09:19,620 These markets are in Arkansas, Tennessee, some Florida 257 00:09:19,620 --> 00:09:20,120 markets. 258 00:09:20,340 --> 00:09:22,000 Some Florida markets are linear. 259 00:09:22,160 --> 00:09:26,040 In Georgia, in Texas, these are markets that 260 00:09:26,040 --> 00:09:27,720 are just pretty reliable. 261 00:09:28,100 --> 00:09:30,700 They have a slow kind of boring upward 262 00:09:30,700 --> 00:09:32,240 trajectory in their pricing. 263 00:09:32,500 --> 00:09:33,820 And it really comes down to kind of 264 00:09:33,820 --> 00:09:35,840 the old fable of the tortoise and the 265 00:09:35,840 --> 00:09:36,840 hare, right? 266 00:09:37,100 --> 00:09:41,180 The hare is that cyclical market that gets 267 00:09:41,180 --> 00:09:43,480 all the attention because there's a lot happening 268 00:09:43,480 --> 00:09:43,700 there. 269 00:09:43,800 --> 00:09:45,560 That's why the media pays attention to it. 270 00:09:45,780 --> 00:09:46,740 There's more to report. 271 00:09:46,860 --> 00:09:49,060 There's a bigger story because there are ups 272 00:09:49,060 --> 00:09:49,600 and downs. 273 00:09:49,660 --> 00:09:52,380 But the linear markets tend to be much 274 00:09:52,380 --> 00:09:53,880 better investment markets. 275 00:09:53,880 --> 00:09:56,180 Around the world, this is also true, Ty. 276 00:09:56,420 --> 00:09:58,320 So if you look at the flagship cities 277 00:09:58,320 --> 00:10:01,440 of the world, whether they be Paris, Hong 278 00:10:01,440 --> 00:10:05,380 Kong, Dubai, places like this, these are all 279 00:10:05,380 --> 00:10:07,840 cyclical markets and they all have very high 280 00:10:07,840 --> 00:10:08,560 land value. 281 00:10:08,820 --> 00:10:11,340 So when you buy a property, you're really 282 00:10:11,340 --> 00:10:13,200 buying two components. 283 00:10:13,540 --> 00:10:16,260 You're buying the land and you're buying the 284 00:10:16,260 --> 00:10:20,060 house or the structure, the apartment complex or 285 00:10:20,060 --> 00:10:21,800 whatever is built on the land. 286 00:10:21,940 --> 00:10:22,800 That's the improvement. 287 00:10:22,800 --> 00:10:26,680 So LTI means land to improvement. 288 00:10:27,220 --> 00:10:30,220 And what you want, the ideal equation here 289 00:10:30,220 --> 00:10:32,680 to limit downside risk and what the Hartman 290 00:10:32,680 --> 00:10:35,920 Risk Evaluator teaches is to invest in markets 291 00:10:35,920 --> 00:10:39,360 with very low land values because those are 292 00:10:39,360 --> 00:10:42,680 more stable and you want high improvement value 293 00:10:42,680 --> 00:10:44,920 as a ratio to the land, okay? 294 00:10:45,120 --> 00:10:48,640 So all of these expensive flagship markets have 295 00:10:48,640 --> 00:10:50,100 high land values. 296 00:10:50,100 --> 00:10:53,220 Cyclical markets are always characterized by that. 297 00:10:53,500 --> 00:10:55,160 So give me an example of one that 298 00:10:55,160 --> 00:10:58,100 has, that would be high or good to 299 00:10:58,100 --> 00:11:00,340 invest in on this LTI scale. 300 00:11:00,720 --> 00:11:03,200 Yeah, so Memphis, Tennessee would be a great 301 00:11:03,200 --> 00:11:03,680 example. 302 00:11:04,100 --> 00:11:06,940 Indianapolis, Indiana would be another great example, right? 303 00:11:07,120 --> 00:11:09,420 These are markets where if you're looking at 304 00:11:09,420 --> 00:11:12,360 a, say a $200,000 property or really, 305 00:11:12,780 --> 00:11:15,220 I should adjust my prices, $300,000 property, 306 00:11:15,540 --> 00:11:16,140 okay? 307 00:11:16,300 --> 00:11:19,160 About 80% of the value of that 308 00:11:19,160 --> 00:11:21,920 deal is going to be improvement value. 309 00:11:22,220 --> 00:11:24,320 And only about 20% will be land 310 00:11:24,320 --> 00:11:24,680 value. 311 00:11:24,940 --> 00:11:27,320 So on that $300,000 property, that lot 312 00:11:27,320 --> 00:11:29,220 without a house on it would be about 313 00:11:29,220 --> 00:11:30,940 $60,000, give or take. 314 00:11:31,320 --> 00:11:34,700 And the house, the structure, the improvement would 315 00:11:34,700 --> 00:11:35,400 be the rest of it. 316 00:11:35,880 --> 00:11:41,040 Why is land volatile and improvement not so 317 00:11:41,040 --> 00:11:41,340 volatile? 318 00:11:41,620 --> 00:11:44,700 That's a very fair question to ask oneself. 319 00:11:45,120 --> 00:11:47,860 And the reason is, is because the ingredients 320 00:11:47,860 --> 00:11:49,320 of a house, so I'm in a hotel 321 00:11:49,320 --> 00:11:50,300 room right now, right? 322 00:11:50,340 --> 00:11:53,980 But if you look behind me, okay, the 323 00:11:53,980 --> 00:11:58,020 ingredients will be drywall, glass, steel. 324 00:11:58,600 --> 00:12:00,940 In the hotel, well, yeah, we've got some 325 00:12:00,940 --> 00:12:02,300 lumber, the baseboards are lumber. 326 00:12:02,500 --> 00:12:03,820 You know, this is a steel building, it's 327 00:12:03,820 --> 00:12:04,300 a high rise. 328 00:12:04,480 --> 00:12:06,840 But we've got those things, we've got concrete, 329 00:12:07,180 --> 00:12:09,540 we've got copper wire in the walls, we've 330 00:12:09,540 --> 00:12:11,660 got lots of petroleum products and the cost 331 00:12:11,660 --> 00:12:13,540 of energy and labor, okay? 332 00:12:13,800 --> 00:12:17,700 And so these things, these commodities are traded 333 00:12:17,700 --> 00:12:20,560 globally, they're not attached to any one currency. 334 00:12:20,880 --> 00:12:23,980 It doesn't matter if money or currency didn't 335 00:12:23,980 --> 00:12:26,240 even exist, people would still need them, the 336 00:12:26,240 --> 00:12:28,480 whole world needs them because they need shelter 337 00:12:29,120 --> 00:12:32,540 and they have intrinsic value, right? 338 00:12:32,740 --> 00:12:35,540 A piece of wood is worth something even 339 00:12:35,540 --> 00:12:37,540 if the dollar didn't exist or the yen 340 00:12:37,540 --> 00:12:39,440 didn't exist or the Euro didn't exist. 341 00:12:39,640 --> 00:12:42,020 It's an asset that has intrinsic value because 342 00:12:42,020 --> 00:12:42,860 people just need it. 343 00:12:43,040 --> 00:12:45,460 And so that's why it's very stable when 344 00:12:45,460 --> 00:12:49,140 you invest mostly in improvement value rather than 345 00:12:49,140 --> 00:12:49,760 land value. 346 00:12:50,000 --> 00:12:52,320 So when you've identified that you wanna be 347 00:12:52,320 --> 00:12:54,440 in kind of a linear type market, there's 348 00:12:54,440 --> 00:12:56,540 so many options available around the country. 349 00:12:56,780 --> 00:12:58,240 So I'm sure one of the most common 350 00:12:58,240 --> 00:13:00,320 questions that your tribe asks you in the 351 00:13:00,320 --> 00:13:02,200 beginning is like, how do I even know 352 00:13:02,200 --> 00:13:04,120 what area to invest in? 353 00:13:04,480 --> 00:13:06,800 Yeah, well, maybe this will sound like shameless 354 00:13:06,800 --> 00:13:08,760 self-promotion, but if you go to jasonhartman 355 00:13:08,760 --> 00:13:11,120 .com and you click on the properties page, 356 00:13:11,160 --> 00:13:12,980 you're gonna see the areas we like and 357 00:13:12,980 --> 00:13:15,180 the areas we're recommending at any given time. 358 00:13:15,380 --> 00:13:17,460 And those do change, by the way, because 359 00:13:17,460 --> 00:13:20,160 markets change, they're very dynamic and we're always 360 00:13:20,160 --> 00:13:23,400 looking at different markets, looking for better opportunities. 361 00:13:23,840 --> 00:13:26,780 And some of these markets appreciate frankly too 362 00:13:26,780 --> 00:13:29,640 much and then they start to get into 363 00:13:29,640 --> 00:13:32,320 the hybrid segment and we have to keep 364 00:13:32,320 --> 00:13:34,160 adjusting our strategy a little bit. 365 00:13:34,600 --> 00:13:36,880 But yeah, that's where you can see the 366 00:13:36,880 --> 00:13:38,560 markets we like at any given time. 367 00:13:38,700 --> 00:13:39,960 So if you check that, if you go 368 00:13:39,960 --> 00:13:41,880 to jasonhartman.com and click on the properties 369 00:13:41,880 --> 00:13:44,820 page, today, you will see in a year 370 00:13:44,820 --> 00:13:47,280 from now, you'll see different markets, okay? 371 00:13:47,480 --> 00:13:48,820 But like, I mean, some of them will 372 00:13:48,820 --> 00:13:51,180 remain the same, but there'll be some different 373 00:13:51,180 --> 00:13:51,940 markets as well. 374 00:13:52,280 --> 00:13:54,040 And I like it because not only do 375 00:13:54,040 --> 00:13:56,200 you list the properties, you even list the 376 00:13:56,200 --> 00:13:59,480 factors that really make it like one of 377 00:13:59,480 --> 00:14:00,540 the most desired properties. 378 00:14:00,660 --> 00:14:02,020 So if you haven't already, make sure you 379 00:14:02,020 --> 00:14:04,940 go to jasonhartman.com and then you can 380 00:14:04,940 --> 00:14:06,900 clearly see on the right-hand side, you 381 00:14:06,900 --> 00:14:08,080 can click the menu and be able to 382 00:14:08,080 --> 00:14:09,080 get to the properties page. 383 00:14:09,200 --> 00:14:11,140 Yeah, and then also Ty, each of those 384 00:14:11,140 --> 00:14:13,660 properties has a full proforma with it. 385 00:14:13,840 --> 00:14:15,240 And one of the things I said earlier 386 00:14:15,240 --> 00:14:18,120 is you've got to, as an investor, you've 387 00:14:18,120 --> 00:14:20,200 got to standardize your data. 388 00:14:21,100 --> 00:14:22,900 Standardize, standardize, standardize. 389 00:14:23,020 --> 00:14:26,700 Because so many people are using spreadsheets and 390 00:14:26,700 --> 00:14:28,720 using this thing and that thing. 391 00:14:28,940 --> 00:14:32,560 And look, you've got to just decide that 392 00:14:32,560 --> 00:14:34,420 you're gonna use one type of proforma. 393 00:14:34,660 --> 00:14:37,060 You're gonna learn how to understand that proforma. 394 00:14:37,060 --> 00:14:39,100 And now a quick break to hear from 395 00:14:39,100 --> 00:14:39,780 our sponsor. 396 00:14:40,740 --> 00:14:42,420 Hey, it's Ty Crandall with Credit Suite. 397 00:14:42,520 --> 00:14:44,360 Many of our subscribers wanna get the most 398 00:14:44,360 --> 00:14:46,200 money to grow their business at the best 399 00:14:46,200 --> 00:14:46,760 terms. 400 00:14:47,180 --> 00:14:49,040 Whether you're looking for startup capital, low interest 401 00:14:49,040 --> 00:14:51,720 credit lines and loans, or business credit, we 402 00:14:51,720 --> 00:14:52,700 can definitely help you. 403 00:14:52,760 --> 00:14:54,660 So give us a call at 877-600 404 00:14:54,660 --> 00:14:58,300 -2487 or schedule your free consultation at creditsuite 405 00:14:58,300 --> 00:15:00,660 .com forward slash consult to see how much 406 00:15:00,660 --> 00:15:02,360 money you can get approved for today. 407 00:15:02,680 --> 00:15:03,940 And you're not gonna deviate from it. 408 00:15:04,000 --> 00:15:05,700 So if anyone brings you a deal or 409 00:15:05,700 --> 00:15:07,160 any deal you find, you put it into 410 00:15:07,160 --> 00:15:08,520 the same software. 411 00:15:08,880 --> 00:15:11,100 And I've been doing that for 21 years. 412 00:15:11,460 --> 00:15:13,560 I liked it so much I actually bought 413 00:15:13,560 --> 00:15:14,680 the company, okay? 414 00:15:15,040 --> 00:15:17,540 So this was a software company called Property 415 00:15:17,540 --> 00:15:18,000 Tracker. 416 00:15:18,280 --> 00:15:20,200 And basically I bought it and I made 417 00:15:20,200 --> 00:15:21,540 it free, okay? 418 00:15:21,700 --> 00:15:24,140 So you can just go to propertytracker.com, 419 00:15:24,220 --> 00:15:25,180 create a free account. 420 00:15:25,420 --> 00:15:26,500 It's totally free to use. 421 00:15:26,720 --> 00:15:28,620 And you can do these proformas yourself. 422 00:15:28,700 --> 00:15:30,600 It takes about five minutes or less. 423 00:15:30,840 --> 00:15:31,620 You know, once you get the hang of 424 00:15:31,620 --> 00:15:32,840 it, you can do one in three minutes. 425 00:15:33,040 --> 00:15:33,840 It's just super easy. 426 00:15:33,900 --> 00:15:35,800 You put a few data points in on 427 00:15:35,800 --> 00:15:38,540 the property, the mortgage, the financing, and your 428 00:15:38,540 --> 00:15:41,180 expectations of the future in terms of appreciation, 429 00:15:41,420 --> 00:15:44,020 vacancy rate, things like that, repair costs, maintenance 430 00:15:44,020 --> 00:15:44,380 costs. 431 00:15:44,940 --> 00:15:47,520 And you will get a projection as to 432 00:15:47,520 --> 00:15:50,180 how that property will perform in virtually every 433 00:15:50,180 --> 00:15:50,640 aspect. 434 00:15:50,980 --> 00:15:52,380 Jason, if somebody is just getting launched, it 435 00:15:52,380 --> 00:15:53,120 can be overwhelming. 436 00:15:53,280 --> 00:15:55,280 There's so many things to do, nodes, tools, 437 00:15:55,460 --> 00:15:55,920 resources. 438 00:15:56,120 --> 00:15:57,220 You don't even know where to kind of 439 00:15:57,220 --> 00:15:58,560 go or what to do first. 440 00:15:58,920 --> 00:15:59,820 What do you do first? 441 00:16:00,200 --> 00:16:02,180 If somebody is just getting into real estate 442 00:16:02,180 --> 00:16:04,040 investing, what are some of the first steps 443 00:16:04,040 --> 00:16:05,760 they should take, the first things to consider 444 00:16:05,760 --> 00:16:06,360 to get launched? 445 00:16:06,740 --> 00:16:08,200 Well, first they've got to see what they've 446 00:16:08,200 --> 00:16:09,980 got going on money-wise, right? 447 00:16:10,220 --> 00:16:12,120 And what is their credit like? 448 00:16:12,180 --> 00:16:13,100 What is their money like? 449 00:16:13,200 --> 00:16:15,800 Now, your company can help people get down 450 00:16:15,800 --> 00:16:18,720 payment money, property improvement money, and so forth. 451 00:16:19,000 --> 00:16:20,120 And so that's great. 452 00:16:20,320 --> 00:16:23,320 But understand one's financial situation, certainly. 453 00:16:23,640 --> 00:16:26,360 Then decide that you're going to invest in 454 00:16:26,360 --> 00:16:29,880 conservative linear markets that have good cashflow and 455 00:16:29,880 --> 00:16:31,000 good return on investment. 456 00:16:31,000 --> 00:16:34,080 Maybe go to my website and watch one 457 00:16:34,080 --> 00:16:37,280 30-minute video on how to analyze a 458 00:16:37,280 --> 00:16:39,300 real estate deal, how to read a proforma. 459 00:16:39,360 --> 00:16:41,000 And it's on that same proforma that I 460 00:16:41,000 --> 00:16:41,800 just told you about. 461 00:16:42,020 --> 00:16:44,580 Get the free software and just be your 462 00:16:44,580 --> 00:16:48,240 own best, be your own best advisor, right? 463 00:16:48,340 --> 00:16:51,720 Rather than relying on somebody else, just learn 464 00:16:51,720 --> 00:16:54,760 how to analyze deals so that you don't 465 00:16:54,760 --> 00:16:55,460 make a mistake. 466 00:16:55,640 --> 00:16:58,780 The most common mistake people make after the 467 00:16:58,780 --> 00:17:00,660 first one we started off with, which is 468 00:17:00,660 --> 00:17:03,520 not doing anything, that's the biggest mistake, okay? 469 00:17:03,700 --> 00:17:05,780 That's the biggest mistake anybody makes. 470 00:17:06,000 --> 00:17:08,200 But the second biggest mistake people make is 471 00:17:08,200 --> 00:17:12,220 that they buy a property based on some 472 00:17:12,220 --> 00:17:16,200 big future expectation, usually of appreciation. 473 00:17:16,900 --> 00:17:19,040 And that is a fool's errand, okay? 474 00:17:19,319 --> 00:17:21,280 Yeah, a lot of people lose money that 475 00:17:21,280 --> 00:17:21,520 way. 476 00:17:22,020 --> 00:17:25,240 Nothing extraordinary should have to happen for you 477 00:17:25,240 --> 00:17:27,000 to make a good return on investment. 478 00:17:27,000 --> 00:17:28,760 And that's why we just take this very 479 00:17:28,760 --> 00:17:33,040 conservative path where every month, every year, people 480 00:17:33,040 --> 00:17:35,300 are making a nice return on their investment 481 00:17:35,300 --> 00:17:37,900 rather than waiting for something great to happen 482 00:17:37,900 --> 00:17:39,040 that may never happen. 483 00:17:39,280 --> 00:17:41,360 So you talked about the investment side. 484 00:17:41,520 --> 00:17:43,520 And I think money and money to invest 485 00:17:43,520 --> 00:17:45,020 is something that's always on people's mind. 486 00:17:45,160 --> 00:17:46,980 What are some of the best ways you 487 00:17:46,980 --> 00:17:49,540 recommend for somebody to get money to invest? 488 00:17:49,660 --> 00:17:51,020 What are the ones you like right now? 489 00:17:51,060 --> 00:17:51,760 What kind of loans? 490 00:17:51,840 --> 00:17:52,480 Do you like DSCR? 491 00:17:52,800 --> 00:17:54,920 I heard somebody was talking about 203K loans 492 00:17:54,920 --> 00:17:55,300 the other day. 493 00:17:55,300 --> 00:17:57,480 What are you seeing that you like the 494 00:17:57,480 --> 00:17:59,020 most that you're recommending to your tribe? 495 00:17:59,320 --> 00:18:01,280 Well, once you've figured out how much you 496 00:18:01,280 --> 00:18:03,700 have for a down payment, the best financing 497 00:18:03,700 --> 00:18:07,340 far and away is the common popular conventional 498 00:18:07,340 --> 00:18:10,200 financing that is essentially backed up by the 499 00:18:10,200 --> 00:18:10,540 government. 500 00:18:10,840 --> 00:18:12,980 It's the Fannie Mae, Freddie Mac financing. 501 00:18:13,460 --> 00:18:15,940 Could also be FHA or VA, but you're 502 00:18:15,940 --> 00:18:17,740 not gonna be able to do investor stuff 503 00:18:17,740 --> 00:18:18,220 with that. 504 00:18:18,340 --> 00:18:20,280 You can kind of house hack if you're 505 00:18:20,280 --> 00:18:23,120 really just getting started and move into one 506 00:18:23,120 --> 00:18:24,560 of those properties for a while and then 507 00:18:24,560 --> 00:18:26,480 turn them into a rental property, okay? 508 00:18:26,620 --> 00:18:28,760 But the best financing far and away is 509 00:18:28,760 --> 00:18:31,360 the Fannie Mae, Freddie Mac conventional financing. 510 00:18:31,660 --> 00:18:34,140 After that, you only are allowed to have 511 00:18:34,140 --> 00:18:35,280 10 of those loans. 512 00:18:35,600 --> 00:18:37,460 Now, if you're married, each spouse could have 513 00:18:37,460 --> 00:18:39,260 10, but after that, a lot of our 514 00:18:39,260 --> 00:18:42,240 clients that are building nice size portfolios, they 515 00:18:42,240 --> 00:18:45,420 will go with DSCR loans, which means debt 516 00:18:45,420 --> 00:18:48,240 service coverage ratio, by the way, where the 517 00:18:48,240 --> 00:18:51,940 qualifying for the mortgage is based much more 518 00:18:51,940 --> 00:18:54,880 on the property than the person, okay? 519 00:18:55,140 --> 00:18:57,460 The DSCR, just making sure those numbers look 520 00:18:57,460 --> 00:18:57,660 good. 521 00:18:57,880 --> 00:19:01,980 And on the propertytracker.com software, it shows 522 00:19:01,980 --> 00:19:03,060 the debt coverage ratio. 523 00:19:03,240 --> 00:19:04,920 So you can instantly know whether you can 524 00:19:04,920 --> 00:19:06,060 get a DSCR loan. 525 00:19:06,380 --> 00:19:06,560 Okay? 526 00:19:06,880 --> 00:19:09,460 And so after your first 10 for one 527 00:19:09,460 --> 00:19:12,360 person or two if you're married, then you 528 00:19:12,360 --> 00:19:14,860 can go ahead and get DSCR loans, commercial 529 00:19:14,860 --> 00:19:15,440 financing. 530 00:19:15,940 --> 00:19:17,660 There's of course hard money, but it's very 531 00:19:17,660 --> 00:19:18,080 expensive. 532 00:19:18,520 --> 00:19:20,940 There are other creative financing options. 533 00:19:21,140 --> 00:19:22,600 There's no way we could cover all this 534 00:19:22,600 --> 00:19:23,980 in our brief time together. 535 00:19:24,680 --> 00:19:26,720 There's like an unlimited number of things you 536 00:19:26,720 --> 00:19:27,300 can do, really. 537 00:19:27,580 --> 00:19:28,060 Now, that's great. 538 00:19:28,160 --> 00:19:29,180 I mean, I think you gave us a 539 00:19:29,180 --> 00:19:30,520 where to start, where to go to from 540 00:19:30,520 --> 00:19:30,780 there. 541 00:19:30,980 --> 00:19:31,760 What about properties? 542 00:19:31,900 --> 00:19:33,060 What about use of properties? 543 00:19:33,220 --> 00:19:34,940 I mean, there's so many things I can 544 00:19:34,940 --> 00:19:35,700 fix and flip. 545 00:19:35,800 --> 00:19:36,640 I can buy and hold. 546 00:19:36,720 --> 00:19:37,700 I can put it in a long-term 547 00:19:37,700 --> 00:19:37,980 rental. 548 00:19:38,040 --> 00:19:39,300 I could do a short-term rental. 549 00:19:39,600 --> 00:19:41,780 Like, how do you help your tribe decide 550 00:19:41,780 --> 00:19:43,660 which one of those paths to choose? 551 00:19:43,660 --> 00:19:47,740 Well, there's a spectrum on the passivity or 552 00:19:47,740 --> 00:19:49,780 activity of an investment. 553 00:19:50,220 --> 00:19:50,340 Okay? 554 00:19:50,600 --> 00:19:53,520 And the things you mentioned, whether they be 555 00:19:53,520 --> 00:19:57,380 Airbnb, short-term rentals, or fix and flip, 556 00:19:57,840 --> 00:20:00,120 or you didn't mention but wholesaling or any 557 00:20:00,120 --> 00:20:03,520 of these things, these are all more businesses 558 00:20:03,520 --> 00:20:05,800 than they are investments. 559 00:20:06,660 --> 00:20:06,900 Okay? 560 00:20:07,140 --> 00:20:10,180 My company, Empowered Investor, we help people invest 561 00:20:10,180 --> 00:20:11,040 in real estate. 562 00:20:11,340 --> 00:20:11,720 Okay? 563 00:20:12,120 --> 00:20:13,960 If you want to go into the business 564 00:20:13,960 --> 00:20:15,560 of real estate and you've got a lot 565 00:20:15,560 --> 00:20:17,400 of time or you don't have a day 566 00:20:17,400 --> 00:20:19,380 job, then you can go into the business 567 00:20:19,380 --> 00:20:22,220 of real estate and you can gain an 568 00:20:22,220 --> 00:20:25,800 additional profit by just basically going down the 569 00:20:25,800 --> 00:20:28,880 food chain and doing the things that someone 570 00:20:28,880 --> 00:20:31,300 would have done before you bought a turnkey 571 00:20:31,300 --> 00:20:31,760 property. 572 00:20:32,060 --> 00:20:34,060 So you could fix it up and do 573 00:20:34,060 --> 00:20:36,380 the BRRRR strategy, or you could fix it 574 00:20:36,380 --> 00:20:38,740 and flip it, or you could go send 575 00:20:38,740 --> 00:20:41,320 thousands of mailers per month or make a 576 00:20:41,320 --> 00:20:42,980 whole bunch of phone calls or knock on 577 00:20:42,980 --> 00:20:45,100 doors and get a wholesale deals. 578 00:20:45,100 --> 00:20:47,300 Or there's just so many things you can 579 00:20:47,300 --> 00:20:48,100 do in real estate. 580 00:20:48,260 --> 00:20:49,460 It's an amazing industry. 581 00:20:49,580 --> 00:20:50,100 It really is. 582 00:20:50,180 --> 00:20:52,200 But what my company does is we help 583 00:20:52,200 --> 00:20:55,840 people buy turnkey properties nationwide in different markets 584 00:20:55,840 --> 00:20:58,740 that we've researched from teams that we recommend. 585 00:20:59,160 --> 00:21:01,100 If I'm coming into you, we hear a 586 00:21:01,100 --> 00:21:02,340 lot about passive income. 587 00:21:02,380 --> 00:21:04,080 We hear a lot about cashflow and properties. 588 00:21:04,380 --> 00:21:05,740 Then we hear a lot about appreciation. 589 00:21:06,100 --> 00:21:06,880 What do you recommend? 590 00:21:07,080 --> 00:21:08,220 Like, what am I looking for? 591 00:21:08,240 --> 00:21:10,200 If I come to you to invest, then 592 00:21:10,200 --> 00:21:11,680 am I really looking for something that's going 593 00:21:11,680 --> 00:21:13,200 to cashflow and create that passive income? 594 00:21:13,520 --> 00:21:14,840 Am I looking for something that maybe has 595 00:21:14,840 --> 00:21:16,560 a better chance of rapid appreciation? 596 00:21:16,800 --> 00:21:18,060 Maybe am I looking for something that does 597 00:21:18,060 --> 00:21:18,400 both? 598 00:21:18,860 --> 00:21:23,740 Yeah, well, appreciation is historically very unreliable and 599 00:21:23,740 --> 00:21:26,380 very few people are good at predicting whether 600 00:21:26,380 --> 00:21:27,320 it'll happen or not. 601 00:21:27,540 --> 00:21:29,400 So for my money, I would say you 602 00:21:29,400 --> 00:21:31,440 look for a property that just simply makes 603 00:21:31,440 --> 00:21:33,680 sense and gives you a nice return on 604 00:21:33,680 --> 00:21:36,660 investment every single year, okay, where you can 605 00:21:36,660 --> 00:21:38,740 get very good returns and you can see 606 00:21:38,740 --> 00:21:41,140 these all in the properties page at jasonhartman 607 00:21:41,140 --> 00:21:42,820 .com, looking at the performance. 608 00:21:43,160 --> 00:21:45,800 If appreciation happens, it's the icing on the 609 00:21:45,800 --> 00:21:46,040 cake. 610 00:21:46,340 --> 00:21:48,200 If a lot of appreciation happens, it's more 611 00:21:48,200 --> 00:21:49,000 icing on the cake. 612 00:21:49,640 --> 00:21:54,280 But again, it's not very reliable to project 613 00:21:54,280 --> 00:21:55,780 big appreciation rates. 614 00:21:56,060 --> 00:21:58,240 I mean, most experts will agree that the 615 00:21:58,240 --> 00:22:02,000 standard appreciation rate over decades is about 6 616 00:22:02,000 --> 00:22:03,880 % per year, give or take, okay? 617 00:22:03,880 --> 00:22:07,040 And if you're expecting anything more than that 618 00:22:07,040 --> 00:22:09,800 to happen, you're more of a speculator or 619 00:22:09,800 --> 00:22:11,740 a gambler than an investor. 620 00:22:12,120 --> 00:22:13,820 And the other thing I'll just say about 621 00:22:13,820 --> 00:22:16,460 that, because you mentioned passive income, there is, 622 00:22:16,740 --> 00:22:19,100 in my opinion, no such thing as a 623 00:22:19,100 --> 00:22:19,900 passive investment. 624 00:22:20,280 --> 00:22:23,060 If anyone is promoting a passive investment, they're 625 00:22:23,060 --> 00:22:23,720 lying to you. 626 00:22:23,940 --> 00:22:27,040 I mean, literally even a savings account is 627 00:22:27,040 --> 00:22:29,200 not a passive investment, okay? 628 00:22:29,620 --> 00:22:33,220 Because you're getting attacked by inflation and taxation 629 00:22:33,860 --> 00:22:36,040 and banks change their policies. 630 00:22:36,440 --> 00:22:39,100 They eschew your money to the government if 631 00:22:39,100 --> 00:22:40,760 you don't have activity in the account. 632 00:22:41,100 --> 00:22:42,700 They close, they go out of business. 633 00:22:43,100 --> 00:22:44,660 Like all of these things have happened to 634 00:22:44,660 --> 00:22:44,860 me. 635 00:22:45,080 --> 00:22:46,720 And I'm thinking, wasn't this supposed to be 636 00:22:46,720 --> 00:22:47,860 just a passive investment? 637 00:22:48,260 --> 00:22:48,880 Precious metals. 638 00:22:49,100 --> 00:22:50,640 I had some precious metals in a safe 639 00:22:50,640 --> 00:22:52,440 deposit box or a couple of them, right? 640 00:22:52,640 --> 00:22:54,980 And the bank says, we're closing this branch. 641 00:22:55,180 --> 00:22:57,040 You have to move your stuff out of 642 00:22:57,040 --> 00:22:59,100 your safe deposit box by a certain date. 643 00:22:59,200 --> 00:23:01,340 And that safe deposit box was in another 644 00:23:01,340 --> 00:23:03,020 state that I used to live in. 645 00:23:03,360 --> 00:23:05,180 And so now I have to literally fly 646 00:23:05,180 --> 00:23:08,000 there, pack my suitcase up with gold and 647 00:23:08,000 --> 00:23:10,120 silver and platinum and palladium, which is extremely 648 00:23:10,120 --> 00:23:11,280 dangerous, right? 649 00:23:11,340 --> 00:23:13,400 To be carrying that stuff because someone could 650 00:23:13,400 --> 00:23:15,060 kill you and take it and then move 651 00:23:15,060 --> 00:23:16,000 it to another bank. 652 00:23:16,140 --> 00:23:17,220 There is nothing as passive. 653 00:23:17,400 --> 00:23:18,840 There's no such thing as a passive investment. 654 00:23:19,160 --> 00:23:23,100 Everything requires attention unless you want to lose 655 00:23:23,100 --> 00:23:23,360 money. 656 00:23:23,720 --> 00:23:25,680 Passive investments, lose money with them. 657 00:23:25,840 --> 00:23:25,960 Sure. 658 00:23:27,000 --> 00:23:27,720 That's not passive. 659 00:23:27,720 --> 00:23:29,760 Passive investments and major appreciation. 660 00:23:29,760 --> 00:23:32,140 What are some of the other misconceptions that 661 00:23:32,140 --> 00:23:33,800 you think your students have when they come 662 00:23:33,800 --> 00:23:35,220 to you that you have to work through 663 00:23:35,220 --> 00:23:36,460 to help them become successful? 664 00:23:36,640 --> 00:23:39,320 I think the biggest one is just timing 665 00:23:39,320 --> 00:23:40,020 the market. 666 00:23:40,240 --> 00:23:41,920 That is the one that just kills so 667 00:23:41,920 --> 00:23:42,600 many investors. 668 00:23:42,840 --> 00:23:44,060 They surf around YouTube. 669 00:23:44,460 --> 00:23:45,640 They see all these doomers. 670 00:23:45,740 --> 00:23:48,560 They get tons of huge ratings who are 671 00:23:48,560 --> 00:23:50,720 just making these leaps in logic about the 672 00:23:50,720 --> 00:23:50,960 market. 673 00:23:51,100 --> 00:23:52,780 Look, the fact is there is a major 674 00:23:52,780 --> 00:23:55,260 housing shortage and it doesn't look like it's 675 00:23:55,260 --> 00:23:57,720 going to be solved anytime soon, okay? 676 00:23:57,720 --> 00:24:01,020 We have about 140 million properties in the 677 00:24:01,020 --> 00:24:01,360 country. 678 00:24:01,620 --> 00:24:03,800 We have about 700,000 of them that 679 00:24:03,800 --> 00:24:06,500 are actually for sale right now, which is 680 00:24:06,500 --> 00:24:07,480 a very low number. 681 00:24:07,640 --> 00:24:09,980 Only about 0.5% of the housing 682 00:24:09,980 --> 00:24:10,920 stock is for sale. 683 00:24:11,160 --> 00:24:13,840 Whereas usually there's about 1%, about double what 684 00:24:13,840 --> 00:24:14,960 we have for sale. 685 00:24:15,520 --> 00:24:19,560 And it's amazing that that's true because interest 686 00:24:19,560 --> 00:24:23,200 rates have had such a massive increase, just 687 00:24:23,200 --> 00:24:26,320 such a historically high increase in interest rates, 688 00:24:26,320 --> 00:24:29,800 yet the market has still appreciated where a 689 00:24:29,800 --> 00:24:32,240 lot of these, what I'll call crash bros 690 00:24:32,240 --> 00:24:34,680 and doomers, they've been saying, oh, the real 691 00:24:34,680 --> 00:24:35,660 estate market's going to crash. 692 00:24:35,720 --> 00:24:36,880 The complete opposite happened. 693 00:24:37,320 --> 00:24:39,120 And look, if you listen to them, you 694 00:24:39,120 --> 00:24:40,540 missed out, okay? 695 00:24:40,840 --> 00:24:42,800 And you're just going to keep missing out. 696 00:24:42,960 --> 00:24:44,240 You got to get in the game. 697 00:24:44,780 --> 00:24:46,360 That's where the money is made, being in 698 00:24:46,360 --> 00:24:47,660 the game, not being a spectator. 699 00:24:48,020 --> 00:24:50,260 And that's the biggest mistake I see people 700 00:24:50,260 --> 00:24:50,460 make. 701 00:24:50,480 --> 00:24:52,360 They talk themselves out of it because they 702 00:24:52,360 --> 00:24:55,640 listen to the wrong advice and they don't 703 00:24:55,640 --> 00:24:58,980 really think it through in detail in terms 704 00:24:58,980 --> 00:25:00,680 of what's really going on and what the 705 00:25:00,680 --> 00:25:02,080 dynamics of the marketplace are. 706 00:25:02,480 --> 00:25:03,040 It's interesting. 707 00:25:03,200 --> 00:25:05,020 We just came through not to get politics. 708 00:25:05,160 --> 00:25:06,900 We just had a recent election and I 709 00:25:06,900 --> 00:25:08,980 think we've learned from these pollsters being so 710 00:25:08,980 --> 00:25:10,360 wrong like that. 711 00:25:10,460 --> 00:25:12,160 Maybe we should trust these experts' advice. 712 00:25:12,400 --> 00:25:14,340 But speaking of the recent election, so what 713 00:25:14,340 --> 00:25:15,660 are your thoughts of the future? 714 00:25:15,820 --> 00:25:18,820 Like what do you see for see happening 715 00:25:18,820 --> 00:25:20,380 here in the years to come with the 716 00:25:20,380 --> 00:25:20,980 real estate market? 717 00:25:20,980 --> 00:25:23,980 Well, if Kamala would have won, or Trump 718 00:25:23,980 --> 00:25:27,600 did win obviously, but that wouldn't really change 719 00:25:27,600 --> 00:25:29,520 things that much in terms of real estate, 720 00:25:29,800 --> 00:25:30,080 okay? 721 00:25:30,340 --> 00:25:32,920 Overall, the same strategy would apply. 722 00:25:33,260 --> 00:25:34,360 Get in the game, okay? 723 00:25:34,620 --> 00:25:37,420 But one of the really beneficial things about 724 00:25:37,420 --> 00:25:39,680 income property investing is when there's inflation. 725 00:25:39,920 --> 00:25:42,100 And either way, there's going to be inflation, 726 00:25:42,400 --> 00:25:42,640 okay? 727 00:25:42,840 --> 00:25:46,000 Trump is likely to deregulate things, which is 728 00:25:46,000 --> 00:25:46,820 great news. 729 00:25:47,240 --> 00:25:49,600 That'll mean more business, more home building. 730 00:25:49,600 --> 00:25:51,300 That's good, right? 731 00:25:51,480 --> 00:25:52,960 From a business perspective, for sure. 732 00:25:53,200 --> 00:25:55,540 But he's also likely to place tariffs on 733 00:25:55,540 --> 00:25:57,060 things, which will make them more expensive. 734 00:25:57,360 --> 00:25:58,840 And a lot of those raw materials I 735 00:25:58,840 --> 00:26:01,100 mentioned earlier, the ingredients of the house, those 736 00:26:01,100 --> 00:26:05,000 doorknobs, those hinges, the plumbing, the plumbing faucets, 737 00:26:05,060 --> 00:26:06,100 so forth, a lot of the stuff's made 738 00:26:06,100 --> 00:26:06,500 in China. 739 00:26:06,940 --> 00:26:08,400 And it's going to have big tariffs on 740 00:26:08,400 --> 00:26:08,500 it. 741 00:26:08,520 --> 00:26:09,660 It's going to get a lot more expensive, 742 00:26:09,880 --> 00:26:10,140 okay? 743 00:26:10,300 --> 00:26:12,460 But ultimately, that's going to be good for 744 00:26:12,460 --> 00:26:14,200 the U.S., I think, in the long 745 00:26:14,200 --> 00:26:16,120 run, because it's going to make more U 746 00:26:16,120 --> 00:26:16,780 .S. jobs here. 747 00:26:16,820 --> 00:26:18,920 It's going to be more beneficial to set 748 00:26:18,920 --> 00:26:20,920 up a company to make these parts in 749 00:26:20,920 --> 00:26:22,620 the U.S., rather than making them in 750 00:26:22,620 --> 00:26:24,620 China or wherever they make them, right? 751 00:26:24,720 --> 00:26:25,940 They're made all over the world. 752 00:26:26,220 --> 00:26:28,880 And so that's one thing, but either way, 753 00:26:29,280 --> 00:26:33,460 we've got $35 trillion in terms of national 754 00:26:33,460 --> 00:26:33,820 debt. 755 00:26:34,160 --> 00:26:37,080 We've got unfunded entitlements that go into the 756 00:26:37,080 --> 00:26:41,140 future that are, some estimates say they're $220 757 00:26:41,140 --> 00:26:41,960 trillion. 758 00:26:42,660 --> 00:26:45,260 The size of the entire U.S. economy 759 00:26:45,260 --> 00:26:46,960 is, what is it now? 760 00:26:46,960 --> 00:26:50,160 About $28 trillion every year, I believe, the 761 00:26:50,160 --> 00:26:51,080 GDP of the country. 762 00:26:51,640 --> 00:26:55,080 And basically, that means the whole country would 763 00:26:55,080 --> 00:26:57,640 have to take no income, pay 100% 764 00:26:57,640 --> 00:27:00,620 tax rate for like 10 years to solve 765 00:27:00,620 --> 00:27:01,200 the problem. 766 00:27:01,420 --> 00:27:02,460 That's not going to happen. 767 00:27:03,000 --> 00:27:07,560 The deficits and the unfunded mandates will continue, 768 00:27:07,820 --> 00:27:09,320 even under Trump, okay? 769 00:27:09,420 --> 00:27:11,100 Trump is a good businessman. 770 00:27:11,520 --> 00:27:13,040 I think he's much better for the country 771 00:27:13,040 --> 00:27:14,800 than the alternative, no question. 772 00:27:14,960 --> 00:27:16,560 I'm very happy that he won. 773 00:27:16,560 --> 00:27:19,180 It seems like most of America is as 774 00:27:19,180 --> 00:27:21,340 well, but either way, it's going to be 775 00:27:21,340 --> 00:27:23,000 a great time to invest in real estate 776 00:27:23,000 --> 00:27:25,280 because there's going to be lots of inflationary 777 00:27:25,280 --> 00:27:28,980 pressure and there's a very significant housing shortage. 778 00:27:29,200 --> 00:27:29,880 Jason, what's up? 779 00:27:29,940 --> 00:27:30,900 Talking to you, seems like I got 30 780 00:27:30,900 --> 00:27:32,220 minutes fly by really quick. 781 00:27:32,380 --> 00:27:33,700 And then that's why I need to keep 782 00:27:33,700 --> 00:27:35,080 bringing you back on because there's so many 783 00:27:35,080 --> 00:27:36,060 things we could dive into. 784 00:27:36,240 --> 00:27:37,580 There's a lot of people here that are 785 00:27:37,580 --> 00:27:39,460 in real estate investing, want to break in. 786 00:27:39,660 --> 00:27:41,220 They need someone like you as a mentor. 787 00:27:41,340 --> 00:27:42,900 I mean, you're the guy in the country 788 00:27:42,900 --> 00:27:45,160 that basically helps people break in and really 789 00:27:45,160 --> 00:27:46,100 succeed in this space. 790 00:27:46,100 --> 00:27:48,480 So where can everybody go that's watching this 791 00:27:48,480 --> 00:27:50,360 and listening to this go to be able 792 00:27:50,360 --> 00:27:51,940 to dive in and be able to get 793 00:27:51,940 --> 00:27:54,680 more insight, more resources, more help from you? 794 00:27:54,880 --> 00:27:55,700 Yeah, thanks, Ty. 795 00:27:55,880 --> 00:27:58,200 So my podcast is called The Creating Wealth 796 00:27:58,200 --> 00:27:58,480 Show. 797 00:27:58,580 --> 00:28:00,480 So just look up Jason Hartman on any 798 00:28:00,480 --> 00:28:01,520 podcast platform. 799 00:28:01,760 --> 00:28:03,360 You can find me on YouTube, just type 800 00:28:03,360 --> 00:28:04,120 Jason Hartman. 801 00:28:04,520 --> 00:28:07,580 And then my main website is just jasonhartman 802 00:28:07,580 --> 00:28:08,040 .com. 803 00:28:08,200 --> 00:28:10,360 And I'm on the other platforms too, Instagram. 804 00:28:10,720 --> 00:28:12,360 I get a lot of engagement on Instagram, 805 00:28:12,500 --> 00:28:14,720 which is Jason Hartman and then number one 806 00:28:14,720 --> 00:28:17,280 and Twitter or X as well, Jason Hartman 807 00:28:17,280 --> 00:28:19,660 ROI there for return on investment. 808 00:28:19,840 --> 00:28:21,040 So you can find me in all of 809 00:28:21,040 --> 00:28:21,540 these places. 810 00:28:22,060 --> 00:28:22,420 Sounds good. 811 00:28:22,600 --> 00:28:23,760 Thanks for joining me today, Jason. 812 00:28:24,100 --> 00:28:24,840 Happy investing. 813 00:28:25,440 --> 00:28:27,320 All right, so listen, if you're watching this, 814 00:28:27,420 --> 00:28:28,800 I mean, you have to go to jasonhartman 815 00:28:28,800 --> 00:28:30,860 .com because if you go to jasonhartman.com, 816 00:28:30,880 --> 00:28:33,380 what you find is a treasure trove of 817 00:28:33,380 --> 00:28:33,940 resources. 818 00:28:34,140 --> 00:28:35,600 I mean, not only can you link to 819 00:28:35,600 --> 00:28:37,380 everything that you want to link to, especially 820 00:28:37,380 --> 00:28:38,500 on the bottom of the page where you 821 00:28:38,500 --> 00:28:40,540 can access the social media links, but you 822 00:28:40,540 --> 00:28:42,580 also can even find like a resources section 823 00:28:42,580 --> 00:28:44,220 and you can look at his properties to 824 00:28:44,220 --> 00:28:46,520 be able to find available properties, the performance 825 00:28:46,520 --> 00:28:48,880 that we discussed today, the areas that you 826 00:28:48,880 --> 00:28:50,960 want to really consider buying in the properties 827 00:28:50,960 --> 00:28:51,820 you want to consider buying. 828 00:28:52,260 --> 00:28:53,900 But he's even got a resources tab that 829 00:28:53,900 --> 00:28:56,400 has everything you can think about from calculators 830 00:28:56,400 --> 00:28:59,360 to articles to blog posts to everything else 831 00:28:59,360 --> 00:29:01,260 you would need resources to actually be able 832 00:29:01,260 --> 00:29:01,980 to be successful. 833 00:29:02,120 --> 00:29:03,840 His blog is there, you're able to, I'm 834 00:29:03,840 --> 00:29:05,620 not sure, Jason, can you access the podcast 835 00:29:05,620 --> 00:29:07,600 from your website, jasonhartman.com? 836 00:29:07,720 --> 00:29:08,280 Yeah, you can. 837 00:29:08,460 --> 00:29:08,960 Sure, sure. 838 00:29:09,600 --> 00:29:12,000 It's better through a podcast platform because then 839 00:29:12,000 --> 00:29:13,680 you get the updates and so forth. 840 00:29:13,680 --> 00:29:15,160 So you want to make sure you look 841 00:29:15,160 --> 00:29:17,620 for his podcast on the podcasting platforms. 842 00:29:17,780 --> 00:29:19,140 It's a better way to go, but you 843 00:29:19,140 --> 00:29:21,260 also can access the blog, the podcast, more 844 00:29:21,260 --> 00:29:23,680 information about him, all of these resources, properties 845 00:29:23,680 --> 00:29:24,700 to invest in, everything. 846 00:29:24,940 --> 00:29:26,780 It is a good starting point for you. 847 00:29:26,960 --> 00:29:27,920 And then from there, you want to take 848 00:29:27,920 --> 00:29:29,080 the next step to talk to Jason. 849 00:29:29,200 --> 00:29:31,720 Jason's got a fantastic tribe of people that 850 00:29:31,720 --> 00:29:33,940 he's helping actually succeed in this space. 851 00:29:34,100 --> 00:29:35,400 And as we all know, like you're going 852 00:29:35,400 --> 00:29:37,540 to get better results, faster results if you're 853 00:29:37,540 --> 00:29:39,300 working with an expert than trying to figure 854 00:29:39,300 --> 00:29:40,160 all this out on your own. 855 00:29:40,180 --> 00:29:41,400 And there's a lot to figure out. 856 00:29:41,400 --> 00:29:43,760 So make sure you get started at jasonhartman 857 00:29:43,760 --> 00:29:44,300 .com. 858 00:29:44,400 --> 00:29:46,880 There's more than abundance of resources. 859 00:29:46,880 --> 00:29:49,060 You'll probably find anywhere else to help you 860 00:29:49,060 --> 00:29:51,700 actually succeed in the game of real estate 861 00:29:51,700 --> 00:29:52,140 investing. 862 00:29:52,520 --> 00:29:53,620 So thank you very much for tuning in. 863 00:29:53,660 --> 00:29:56,240 Make sure you check out jasonhartman.com. 864 00:29:56,400 --> 00:29:56,960 Take care. 865 00:29:57,280 --> 00:29:57,780 Have a great day.