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You've probably heard about Capital allowances. You might even know something about this generally little known area of tax relief. But I'm sure you'd like to know more, right?If you have Commercial property, Serviced Accommodation or even HMOs, then it's definitely worth your while listening to this two-part special on Capital Allowances because it could save you thousands of pounds. And who wouldn't like that?Not many people know more about Capital Allowances than Arthur Kemp of Exact Capital Allowances so, you'd be well advised to listen now as we discuss:- Types of properties that qualify for capital allowances- Discussion on the legislation surrounding capital allowances- The distinction between dwelling houses and non-dwelling premises- Qualification of commercial properties, serviced accommodations, and HMOs- Case law and challenges related to HMO properties and capital allowances- Identification of second fix items- Examples of items that qualify for capital allowances- The exclusion of structural elements from capital allowances- Specific items that can be claimed including lighting, heating systems, security, soft furnishings, and more- The confusion around claiming capital allowances in HMOs- Differentiation between common areas, communal areas, and dwelling areas- Eligible items for claiming in common areas and the challenges in the HMO sector- The value of installations and services to the entire property- Historically changing interpretations and the impact of case law on claiming capital allowances in HMOs- Potential changes in legislation- Details about recent spring budget (2024) changes and its implications- The potential impact on holiday lets and the capital allowances for such properties- Perspectives on the likelihood of retrospective amendments and implementation of potential changesIn Part Two (Episode 160) we'll be discussing:- Deadlines for applications and strategic use of capital allowances- The mechanism of the annual investment allowance- The role of capital allowances in building a more profitable UK property portfolioKeywords:Expat Property, Capital Allowances, Tax Relief, Commercial Property, Serviced Accommodation, HMOs, Tax Saving, Special, Guests, Arthur Kemp, Ideal Housemates, Kim and Aggie, Carol Vorderman, Boris Johnson, Peace and Quiet, Property Tour, Measurement Tool, Whatsapp Video, Tax Return, Legislation, Dwelling House, Communal Areas, Common Areas, Plant and Machinery, Second Fix Items, Short Term Rentals, Furnished Holiday Lets, Case Law, Spring Budget, Tax Simplification, HMRC
Hey I'm back. **This is kind of a visual episode, see her for the Youtube link if you want to see what I'm referring to. https://youtu.be/0XKPpThZJKg I cover things 1st time homebuyers often overlooks when touring a property. I cover what to look for inside an outside of the home from checking the gradient of the property to giving a good hard look (or smell) as to why that good smelling candle is lit in the home. Looking for a home in Dallas? Schedule a call w/ me: https://calendly.com/houserich/dfw Outside of Dallas? Connect w/ a dope Realtor in your local market: https://homeandmoney.com/houserichdave/ This is a show for millennial first time home buyers looking to buy their 1st home and build generational wealth through real estate. Real estate is a way to build black wealth and close the wealth gap.
#131Have you ever wondered what it would be like to spend nearly two weeks travelling around the UK purely for property? Wonder no more!For the next fourteen days or so, we're releasing a daily pocket-sized episode in the style of a diary.This mini-season documents my first ever self-styled solo UK Property Tour as I criss-cross the country checking up on our portfolio and staying in our two SA properties. It's got a little bit of everything, from disasters to triumphs, great people and everything in between.Tune In, Turn On & Drop by for my UK Property Tour! Leave an honest review of Expat Property StoryJoin our Mailing List to join our WhatsApp group AND access our 37 Question Due Diligence Checklist AND our 23 Step Guide to Buying Property at Auction AND our Monthly NewsletterFollow the Show on InstagramTell us the one thing you're struggling with in UK property We typically work with time poor professionals get a good return on their money by investing with us. To schedule a call to discuss As a reminder, here are the details of where to meet other Expat Property Investors (For FREE!!!):Hong Kong: The Urban Bakery in the Landmark Building in Central on the first Saturday of each month from 11:30 amDubai: Holiday Inn, Science Park on the first Wednesday of each month (from 7pmSingapore: The Providore at VivoCity on the first Saturday of each month from 10:30 am
Today's Flashback Friday is from episode 843 published last June 14, 2017. Jason has left the most expensive city in the US, NYC, and is enjoying fly over state pricing once again. The meat of this episode is a recording of a Creating Wealth Live session which focuses on inflation. We all know inflation is right around the corner as it is the only way the government can get out of the current economic climate. Inflation will erode our purchasing power, our stocks, our savings and the rich will get richer. Investing in Income Property is your best weapon against the forthcoming inflationary increase. Key Takeaways: 3:07 Using a movie or Broadway play can get the attention of the political left. 6:42 Investors should align their interests with the government and the powers that be. 9:44 The Venture Alliance Mastermind in Chicago and the Oklahoma City JHU Live and Property Tour. Creating Wealth Live Clip 11:08 The 6 ways the government is likely to inflate themselves out of a mess. 13:20 Understanding inflation in all of its forms. 16:19 The political left uses the guise of compassion and the right uses the guise of fiscal responsibility. 18:23 The government imports a deflationary force. 22:19 All the bills Americans need to pay are increasing while the price of ‘wants' is going down. 26:05 How does income property counteract inflation? Mentioned in This Episode: Renter's Warehouse - Get 3 free months of property management with this link. Jason Hartman Venture Alliance Mastermind Hartman Education
This Flashback Friday is from episode 686 published last June 13, 2016. Michelle Hawkins is a client who has attended a Meet the Masters live event and the most recent Creating Wealth Seminar and Property Tour in Cincinnati, Ohio. Michelle crunched her financial numbers only to discover that her pension was never going to be enough to support her during her retirement and she knew she couldn't count on Social Security. Her investor journey started by reading all the investment books on the library shelves which led her to the sound decision of investing in income property. She shares her story and some sound investing advice. Key Takeaways: Jason's Editorial: 1:53 Was the Orlando shooter on prescription drugs? If so, will anyone report on it? 8:22 The pension system will not support you. You need to find a diversified wealth creation system now. Michelle Hawkins Client Interview: 14:22 Michelle highly recommends attending a live event. She is proof that it works. 18:23 The government basically says your money doesn't really belong to you until they decide to give it back to you when you are 69. 22:19 Michelle and Jason take a hard look at inflation, real interest and tax rates. 26:51 Misconceptions about the stock market in Michelle's research led her to investment in income property. 36:16 Physically vetting the system and the investment markets allows investors to buy with confidence. Mentioned in This Episode: Jason Hartman Meet the Masters Hartman Education Follow Jason on TWITTER, INSTAGRAM & LINKEDIN Twitter.com/JasonHartmanROI Instagram.com/jasonhartman1/ Linkedin.com/in/jasonhartmaninvestor/ Call our Investment Counselors at: 1-800-HARTMAN (US) or visit: https://www.jasonhartman.com/ Free Class: Easily get up to $250,000 in funding for real estate, business or anything else: http://JasonHartman.com/Fund CYA Protect Your Assets, Save Taxes & Estate Planning: http://JasonHartman.com/Protect Get wholesale real estate deals for investment or build a great business – Free Course: https://www.jasonhartman.com/deals Special Offer from Ron LeGrand: https://JasonHartman.com/Ron Free Mini-Book on Pandemic Investing: https://www.PandemicInvesting.com
We are talking about stolen goods today on the podcast. We also talk about how the biggest sin right now seems to be "succumbing to wokeness" and more importantly: will Florida secede from the union? What is your favorite classic comfort food? Where my Ramen heads at? You like grill cheese and tomoato soup? Gravy Baby has a Discord server. We coordinate Book Club and Film Club through there, which are both still happening*! *Book club is on hiatus for the summer. Join the Discord: https://discord.gg/5BdM9BUdmm Film Club: Four Lions; a satire about four British Muslims who decide they want to be terrorists. Dates and times may fluctuate, but the Discord will always have up to date info.
The Sly Dog & The Wife share a post show discussion of Waterparks concert they just attended! We also discuss opening acts Sophie Powers and Hunny, our past live experiences with Waterparks, and The Sly Dog injuring himself while trying to rock out. Tune in and turn it up!
Today, we're talking about selecting the best cash-flowing multifamily assets in an area. So if you're interested in top tactics for property viewing, learning the right questions to ask when negotiating with a broker, plus other procedures to do before purchasing a property, check out the full episode! WHAT YOU'LL LEARN FROM THIS EPISODE What makes quality housing amenities crucial to resident comfortability Why it's essential to practice due diligence during broker negotiations A facility assessment checklist you have to track before buying a property Reasons to have a house drone viewing to check an asset's roof condition How to perform evaluative comparison in selecting a deal in an area RESOURCES/LINKS MENTIONED Multifamily Money: Ep50: How To Find Deals In 2022: Part 1 | Your Target Market | Apple Podcast Multifamily Money: Ep52: Embracing the Fundamentals of Multifamily Investing Success | Apple Podcast Multifamily Money: Ep54: Scale Your Multifamily Business with People Who Share Your Goals and Values - Hendra Tambunan | Apple Podcast CoStar Apartments.com Zillow CONNECT WITH US Email: shawn@greenbriarcg.com Instagram: Shawn Winslow YouTube: Shawn Winslow LinkedIn: Shawn Winslow Facebook: Shawn Winslow
Our Alabama Property Tour is coming soon! We will be covering 2 markets there- Birmingham and Huntsville. Go to JasonHartman.com to sign up TODAY! Inflation induced debt destruction, consumer debt, boomer generation and millennial debt! Today Jason explains that we have the opportunity to provide rental housing to our biggest target client, the millennial cohort. They don't care that much about owning a house compared to prior generations. They like to be mobile, portable and have remote work, be digital nomads. Hence the need for rental properties! Key Takeaways: 1:10 Invest in one of the best linear markets in the country- Alabama! 1:53 Personal savings rate and Edward Bernays 5:47 The high cost of living for the millennial generation 10:30 Blaming the boomers, the 60s technological boom, the millennial lifestyle 13:53 Millennials and debt 17:36 Millennial mayhem 20:26 Alabama property tour. Go to JasonHartman.com 20:38 Why mass inflation is still a threat to rich countries Follow Jason on TWITTER, INSTAGRAM & LINKEDIN Twitter.com/JasonHartmanROI Instagram.com/jasonhartman1/ Linkedin.com/in/jasonhartmaninvestor/ Call our Investment Counselors at: 1-800-HARTMAN (US) or visit: https://www.jasonhartman.com/ Free Class: Easily get up to $250,000 in funding for real estate, business or anything else: http://JasonHartman.com/Fund CYA Protect Your Assets, Save Taxes & Estate Planning: http://JasonHartman.com/Protect Get wholesale real estate deals for investment or build a great business – Free Course: https://www.jasonhartman.com/deals Special Offer from Ron LeGrand: https://JasonHartman.com/Ron Free Mini-Book on Pandemic Investing: https://www.PandemicInvesting.com
Jason is in the Hot Seat today as Joe Brown of Heresy Financial asks him about his contrarian views on the housing market's supposed impending crash. They also discuss single versus multifamily investments, and identify the different facets and causes of the housing shortages across the America. Jason also shares a few slides from his Hartman Comparison Index (HCI) which shows that houses are not as expensive as one might think! But before that we invite you to our 2 city Alabama Property Tour! Get to know this linear market and discover what makes this place a very good choice in which to invest! Key Takeaways: Jason's editorial 1:20 Join our 2 city Alabama property tour. Go to JasonHartman.com for details Joe Brown interviewing Jason 2:38 Jason's contrarian views 4:25 No such thing as US national housing market; 3 types of market 6:42 Identifying cyclical and linear markets 9:00 Single family vs. multifamily; investing vs. speculating 13:20 Single family housing shortage; cause and effect of government regulations 17:34 Environmental racism; the NIMBY syndrome 19:00 New home construction and resale; builders cutting deals with large housing institutions 24:51 The non-existent stressed home seller; benefits the home improvement industries 27:12 Comparing the Case-Shiller Index vs. Hartman Comparison Index 32:15 Housing prices vs. haircuts vs. inflation 35:49 Mental Hedonic Indexing 37:33 Summary: Mortgage Sensitivity Index, T.I.N.A. Mentioned: Equity Residential, JP Morgan, BlackRock, Invitation Homes, D.R. Horton Tomas Sowell ShadowStats.com Grab Jason's Hartman Comparison Index (HCI) Follow Jason on TWITTER, INSTAGRAM & LINKEDIN Twitter.com/JasonHartmanROI Instagram.com/jasonhartman1/ Linkedin.com/in/jasonhartmaninvestor/ Call our Investment Counselors at: 1-800-HARTMAN (US) or visit: https://www.jasonhartman.com/ Free Class: Easily get up to $250,000 in funding for real estate, business or anything else: http://JasonHartman.com/Fund CYA Protect Your Assets, Save Taxes & Estate Planning: http://JasonHartman.com/Protect Get wholesale real estate deals for investment or build a great business – Free Course: https://www.jasonhartman.com/deals Special Offer from Ron LeGrand: https://JasonHartman.com/Ron Free Mini-Book on Pandemic Investing: https://www.PandemicInvesting.com
Greetings from the Land of the Rising Sun: Japan. But due to demographic issues, Japan might not be a country for long. This is one of Jason's morbid fascinations... countries in a demographic "cliff" like many countries in Europe, Russia and China! Sign up for our Alabama Property tour happening on March! Today Jason welcomes Lyn Alden. Lyn provides tens of thousands of investors per month with research, information, and tools to help them build wealth and reach financial freedom. Some of her content is aimed at new investors, while the most of her topical articles are aimed at more experienced investors. Her research services cater to institutional investors and sophisticated retail investors. Visit LynAlden.com to view some of her core articles, in various sections: Building Wealth (Beginner) Investing Basics (Beginner) Investing Strategy (Intermediate) Global Macro Topics (Experienced) Key Takeaways: Jason's editorial 1:28 Greetings from Tokyo, Japan, land of the "setting sun" with its problems with demographics 4:17 Introducing our guest today, Lyn Alden 5:11 NAHB affordability index 7:34 Low Affordability = More Renters 8:36 Positive jobs report sends mortgage rates higher 10:16 Mortgage Delinquencies Increased Slightly from Record Lows 12:09 Barring major events happening, there is no sign of a housing crash 13:08 Join our Alabama Property Tour. Go to JasonHartman.com/Properties for more details Lyn Alden interview 13:53 Welcome Lyn Alden 14:42 A shift towards structural inflation 17:38 Charts: A Century of US Debt as a % of GDP and A Century of US Monetary and Fiscal Policy 21:58 War spending or real spending building the country and people 24:56 Investing during the covid era 27:21 Actions steps for investors to thrive in this environment 32:09 The issue with buy backs 34:27 Money safety in the banks and creating entities for asset protection 38:47 The linear and cyclical housing markets 40:53 Chart: Number of mortgages by interest rate 42:03 A soft economy and sensitive sectors like tech 45:13 Overfunded companies and the burden of reality and the classic bad investment cycle 48:51 Shadow inflation, undercharging and the realignment of the markets 52:17 Prepare for another round of inflation Website: LynAlden.com Follow Jason on TWITTER, INSTAGRAM & LINKEDIN Twitter.com/JasonHartmanROI Instagram.com/jasonhartman1/ Linkedin.com/in/jasonhartmaninvestor/ Call our Investment Counselors at: 1-800-HARTMAN (US) or visit: https://www.jasonhartman.com/ Free Class: Easily get up to $250,000 in funding for real estate, business or anything else: http://JasonHartman.com/Fund CYA Protect Your Assets, Save Taxes & Estate Planning: http://JasonHartman.com/Protect Get wholesale real estate deals for investment or build a great business – Free Course: https://www.jasonhartman.com/deals Special Offer from Ron LeGrand: https://JasonHartman.com/Ron Free Mini-Book on Pandemic Investing: https://www.PandemicInvesting.com
Dom Young is hot property at the moment, do you see him remaining at the Knights? Hosted on Acast. See acast.com/privacy for more information.
So what's the problem that we faced when partnering with contractors? 1. NOT CHEAP • Don't know how to bid a job correctly... I know I know, “But that's their job!” • Work very few hours 2. BAD WORK • Subbing out to the wrong workers • Always looking for what's cheap, causes delays or redos 3. ADULT SUPERVISION IS REQUIRED • Choosing the wrong materials • Not coordinating materials with scope • Forgetting to do certain jobs • Not fully knowing the process with the city So, what can you do to decrease these problems? Find out here
In this video of An Investors Journey, we will be walking you through one of our recent new builds here in San Antonio. We did a property tour with local investors and broke down everything.
Today's Flash Back Friday comes from episode 502, originally published in April 13, 2015 Jason Hartman reads a listener question about the rental rates decreasing and what to do about it. He also invites Jurgen Neugebohrn to the show and answers some of his personal questions. Jurgen is in the oil industry in Saudi Arabia and is interested in the real estate market. He has some very interesting questions for Jason to answer and picks Jason's brain on investing in real estate. Read the full transcription HERE. Key Takeaways: 4:50 – You don't hear about the people who have lost money investing in low rent to value ratio markets. 7:25 – Jason reads a listener question about rental rates decreasing. 12:15 – Remember to join our Memphis property tour! 13:50 – Jason introduces Jurgen, an online listener, to the show. 19:50 – What's Saudi Arabia like? 23:30 – According to Jim Norman, the reason why oil prices are so low now is because the US is trying to economically hurt Russia and Venezuela. 25:00 Jason explains why he disagrees with Harry Dent. 32:00 – Jason doesn't have a check list on what you should buy because properties vary depending on the investor's needs. 35:35 – Jurgen asks one last question about Fernando's independence day. Mentioned In This Episode: The Oil Card by Jim Norman The WEALTH TRANSFER is happening FAST! Protect your financial future now! Did you know that 25% to 40% of all dollars ever created were dumped into the economy last year??? This will be devastating to some and an opportunity to others, be sure you're on the right side of this massive wealth transfer. Learn from our experiences, maximize your ROI and avoid regrets. Free Mini-Book on Pandemic Investing: https://www.PandemicInvesting.com Jason's TV Clips: https://vimeo.com/549444172 Asset Protection, Tax Savings & Estate Planning: http://JasonHartman.com/Protect What do Jason's clients say? http://JasonHartmanTestimonials.com Easily get up to $250,000 in funding for real estate, business or anything else http://JasonHartman.com/Fund Call our Investment Counselors at: 1-800-HARTMAN (US) or visit www.JasonHartman.com Guided Visualization for Investors: http://jasonhartman.com/visualization
The biggest hesitation with starting to invest in real estate right now is waiting for the "crash"! The housing crash isn't coming anytime soon! In this episode, you will know WHY you SHOULD invest in real estate right now and not wait on the sidelines. ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ Announcement:
If you've been managing your real estate leads for a while now I'm sure you've experienced how hard it is to find a decent CRM. Well, in this episode of Tips From The Pros I interviewed the owner of the BEST real estate CRM in the market, REsimpli. ⚡⚡THIS IS A MUST LISTEN TO INTERVIEW!⚡⚡ We covered A LOT with Sharad Mehta. Everything from techniques on how to stay focused, work life balance, real estate lead generation, to using REsimpli to manage your WHOLE real estate investing business! ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬
As a real estate investor knowing where to market and where you should be investing is very important. In this episode, we share everything on the San Antonio real estate market data we pull, how we do so, and how we use that data to invest. ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ Announcement:
In this episode of Tips From The Pros, we talk with Dan Francis, CEO of StepStone Realty. We spoke about many changes coming to the Texas real estate market as well as why you must be a real estate agent investor now more than ever. Real estate investing is always evolving and we, as investors and real estate agents, must evolve as well. ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ Text "Info" to 210-794-9898 to receive insider information we don't share anywhere else. ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ ⏰ TIME CODES ⏰0:00 ✅ Can You Be A Real Estate Agent Investor? 1:13 ✅ How Stepstone Realty is evolving the real estate agent investor 4:50 ✅ Top Agents training and helping each other at StepStone Realty 7:20 ✅ Problems within the Investor Community 8:53 ✅ Should you go with a Low fee brokerage 10:53 ✅ Can you invest in real estate as a real estate agent 14:28 ✅ Real estate agent investors will ALWAYS succeed 21:06 ✅ How was this pandemic different than the 2008 Great Recession 25:25 ✅ The forbearance that's coming in 2021 26:50 ✅ What's causing the employment crisis 30:30 ✅ The coming foreclosure crisis 2021 35:05 ✅ Why real estate investors can help people prevent foreclosures 40:23 ✅ What's causing this insane Buyer Demand 42:16 ✅ Millenial hitting at their peak spending will drive the next boom 47:02 ✅ Waiting to buy is not the right strategy 51:35 ✅ What are the opportunities in the Market? 55:58 ✅ Tips for Scaling a Business 59:00 ✅ Tips for Managing a Team 1:01:49 ✅ Choosing Priorities for running your business 1:04:16 ✅ Tips on Time Management 1:06:55 ✅ Working yourself OUT of your business 1:08:55 ✅ Next on Stepstone Realty and their Real Estate Agent Investor 1:14:21 ✅ How to get in touch with Stepstone Realty ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬
Habitat Podcast #135 finds Jared down in Southern MI at the property featured in the YouTube Series by Meateater & Mark Kenyon.. the Back 40. Jared is joined by Chad Thelen from Realtree Land Pro & Brad Harper from Harper Growing Solutions. We toured the property, applied foliar fertilizer and lime, and recorded a podcast. We covered the Meateater NDA Property Tour, NDA's Field to Fork Program, Brad's Foliar Fertilizing program and products, Birds, Bees, & Podcasted from a Deer Blind. Gun Raffle - Gun Raffle Email us! info@habitatpodcast.com Leave us a great review here: https://apple.co/2uhoqOO Habitat Podcast Site: www.habitatpodcast.com Land Plans: LAND PLANS Habitat PODCASTS & GEAR: http://bit.ly/HABITATGEAR Leave us a great review here: https://apple.co/2uhoqOO Killer Food Plots - http://bit.ly/KillerFP 10% and free shipping w/code: HP10% Packer Maxx - http://bit.ly/PACKERMAXX $25 off with code: HPC25 Morse Nursery - http://bit.ly/MorseTrees 10% off and free shipping w/code: HABITAT10 HuntWise - http://bit.ly/2MHQIYz Michigan Whitetail Pursuit - http://bit.ly/MWpursuit Realtree Land Pro - Lake States - https://bit.ly/34acwE9 Habitat Podcast AMAZON Store - https://www.amazon.com/shop/habitatpodcast
In today's episode of Coffee With The Johns, we cover a lot of real estate news...Macro Economy, Local Economy & Inflation. Plus so much more!The Fed finally admits that we have rising inflation but they're saying that it's "transitionary". In this episode of Coffee With The Johns, we break down what does inflation real means, is inflation transitionary, how this will affect the real estate market, and much more! Listen to today's Coffee With The Johns The key here is you stay EDUCATED to better protect yourself and your business. You can do that by watching Coffee With The Johns every Friday at 8 AM CST. ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ ***Become an Insider: Text “CWTJ” to 210-794-9898 for Insider Tips, information on live streams, events, and amazing free resources! ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬
When building houses or doing big renovations, dealing with the city is always a big hurdle. In this episode of Tips from the Pros, we are talking to Seth Teel owner and broker of Somos Real Estate. Seth brings a unique insight from his time on the Zoning Board of Adjusters for the city of San Antonio. ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ Text "Info" to 210-794-9898 to receive insider information we don't share anywhere else. ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ ⏰ TIME CODES ⏰0:00 ✅ Understanding the New Build Process In Texas With Seth Teel 0:51 ✅ How has Seth adapted during the pandemic 3:31 ✅ How does Somos Real Estate support Real Estate Agents 7:58 ✅ The current status of Seth's New Build 10:28 ✅ Yes means maybe when dealing with the city 13:14 ✅ Zoning Board of Adjusters for San Antonio 16:18 ✅ How to be sure you're good to build 18:08 ✅ Who can save you the MAJORITY of these headaches
Understanding how to handle multiple offers in real estate right now, in 2021, has become so crucial!
How To Evaluate A House For A Flip | Beginners Guide for Flipping Houses 2021 Knowing how to evaluate a house to flip is the area so many get wrong which why they end up losing tens of thousands of dollars. ❌ Many use the 70% formula and think that’s enough… ❌ But what if the 70% formula is being used with the WORNG NUMBERS?! In this episode, I’ll be covering the mistakes we have made and the 7️⃣ Steps to KNOW to make sure you’re buying the RIGHT house at the RIGHT price to make money.
Before You Partner With A Contractor Watch THIS! It is VERY common to want to partner with a contractor when rehabbing a house. 1. It seems like it’ll be cheaper 2. It seems like they would do a better job 3. It seems like you won’t need to babysit them and on and on… I’m sure you noticed how I said “SEEMS” and not “IS”. Not everything is as it seems. In this episode I will share with you not just the HORROR stories of partnering with a contractor but, if you still want to do it, how to do it the RIGHT WAY! ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ ANNOUNCEMENTS:
Today I interviewed a gentleman who used to bail hay in East Texas and now is the founder and CEO of 1% Listings. The decision to innovate resulted in his business 1% Lists and motto Full Service for Less, is recognized as the fastest-growing company in the nation according to the Inc.5000 A second-generation Realtor, once Teacher and Basketball coach pushed into the branding world is now Franchising throughout the East Coast. His entire business plan is based on how to provide the best value by value-based agents and do it at a much lower cost! And to bring an industry that needs this type of mindset and integrity from within itself. ⏰ TIME CODES ⏰ - BelowAnnouncement:
Have you been wondering how do you know for sure which strategy makes more sense? Flipping houses or Brrrr Strategy? Profit vs Cashflow? Now vs later? In this video, I’ll show you the 4 Qualifications we use to analyze our deals and decide which to keep and which to flip. Spoiler alert: It isn’t always about the numbers…Announcement:
Today's Flash Back Friday comes from Episode 696, originally published in July 2016. Jason shares his 10 Commandments of Successful Investing in this audio recording of his live presentation during the Orlando, Florida Creating Wealth Seminar and Property Tour. He looks back at getting his real estate license at the age of 19 and the decisions he made when he sold his first company. Jason has become a multimillionaire by living by these guidelines and you can too. Income property is the most historically favored asset class. Why gamble your money in stocks and bonds when you can make solid, long-term investments in the US real estate market? Key Takeaways: [1:55] You need to build a portfolio before you consider protecting your assets and estate planning. [12:58] The Denis Waitley poem that changed Jason’s life. The 10 Commandments of Successful Investing Live Presentation: [16:27] Thou shalt become educated. [21:40] Seek guidance: Have a team including an investment counselor. [22:56] Thou shalt maintain control. [25:30] Thou shalt not gamble. [27:53] Thou shalt diversify. [29:54] Be area agnostic. [31:02] Thou shalt use borrowed money. [33:42] Thou shalt only invest where there is universal need - Avoid trends. [34:35] Purchase tax-favored assets. Mentioned in This Episode: www.JasonHartman.com Hartman Education Denis Waitley Creating Wealth Ep. #150
Today's Flash Back Friday comes from Episode 843, originally published in June 2017. Jason has left the most expensive city in the US, NYC, and is enjoying fly over state pricing once again. The meat of this episode is a recording of a Creating Wealth Live session which focuses on inflation. We all know inflation is right around the corner as it is the only way the government can get out of the current economic climate. Inflation will erode our purchasing power, our stocks, our savings and the rich will get richer. Investing in Income Property is your best weapon against the forthcoming inflationary increase. Key Takeaways: [02:54] Using a movie or Broadway play can get the attention of the political left. [06:29] Investors should align their interests with the government and the powers that be. [09:18] The Venture Alliance Mastermind in Chicago and the Oklahoma City JHU Live and Property Tour. Creating Wealth Live Clip: [10:42] The 6 ways the government is likely to inflate themselves out of a mess. [12:54] Understanding inflation in all of its forms. [15:53] The political left uses the guise of compassion and the right uses the guise of fiscal responsibility. [17:57] The government imports a deflationary force. [21:53] All the bills Americans need to pay are increasing while the price of ‘wants’ is going down. [25:39] How does income property counteract inflation? Mentioned in This Episode: www.JasonHartman.com Hartman Education
Marina Del Rey is a community of 39,000 people on the West Side of #LosAngeles that is best known as the host to one of the world's largest man-made small craft harbors. The community is in close proximity to Venice, Playa Vista, and Westchester which I previously mentioned is one of Los Angeles' hottest new markets. Now available on 113 Fleet St., is an amazing five level townhome. Words can't express how beautiful this #townhome is. From stunning rooftop sunsets to vaulted ceilings flooding with natural light, this townhome truly represents the best of #MarinaDelRey beach living. Walk with me on this detailed property tour of 113 Fleet Street in Marina Del Rey, California! @craigkizek Thank you @primemediastudio for helping me produce this fun video!
Santa Monica is one of the most desired places to live in all of Los Angeles County. The beach, shopping, and great weather are just some of the few conveniences #SantaMonica provides. Now available on 900 Euclid St., is a beautiful property for those looking to call Santa Monica their #home. Restaurants, cafes, and 3rd Street Promenade are just a short walk away as this property is located in the prime Wilshire/Montana area of Santa Monica. Walk with me on this detailed property tour of 900 Euclid Street in Santa Monica, #California! Thank you to @primemediastudio for helping showcase this stunning property!
Jason Say and guest Brandon Self talk about food plot placement and hunting strategies.
Jason is joined with investment counselor Carrie to discuss some more current properties. Take a mini-tour with Carrie in York, Pennsylvania, or listen up for this auditory property tour through Alabama, Georgia, and Indiana. In the second segment today, Jason discusses the hybrid approach to property management, prompted by a Voxer message from client Bruce. As well, Jason speaks on three basic economic maladies; inflation, deflation, and stagnation. This drives the show to our final topic of Jimmy Carter and Malthusian thinking. Key Takeaways: [1:20] Atlanta, Georgia area property only 9 miles from the Hartsfield-Jackson Airport [4:30] Port city, Mobile, Alabama property offers low property taxes [7:00] Property Tour with Carrie in York, Pennsylvania [9:00] The latest empowered investor, Bruce, taking the hybrid approach [11:40] Firing your property manager, self-managing or the hybrid approach. Not all bad or mysterious [13:30] The three basic economic maladies; inflation, deflation, and stagnation [18:40] The carter administration was typified by Malthusian thinking [19:45] Jimmy Carter's infamous Malaise Speech Websites: www.JasonHartman.com/ask www.JasonHartman.com
Jason is joined with investment counselor Carrie to discuss some more current properties. Take a mini-tour with Carrie in York, Pennsylvania, or listen up for this auditory property tour through Alabama, Georgia, and Indiana. In the second segment today, Jason discusses the hybrid approach to property management, prompted by a Voxer message from client Bruce. As well, Jason speaks on three basic economic maladies; inflation, deflation, and stagnation. This drives the show to our final topic of Jimmy Carter and Malthusian thinking. Key Takeaways: [1:20] Atlanta, Georgia area property only 9 miles from the Hartsfield-Jackson Airport [4:30] Port city, Mobile, Alabama property offers low property taxes [7:00] Property Tour with Carrie in York, Pennsylvania [9:00] The latest empowered investor, Bruce, taking the hybrid approach [11:40] Firing your property manager, self-managing or the hybrid approach. Not all bad or mysterious [13:30] The three basic economic maladies; inflation, deflation, and stagnation [18:40] The carter administration was typified by Malthusian thinking [19:45] Jimmy Carter’s infamous Malaise Speech Websites: www.JasonHartman.com/ask www.JasonHartman.com
Jason is joined with investment counselor Carrie to discuss some more current properties. Take a mini-tour with Carrie in York, Pennsylvania, or listen up for this auditory property tour through Alabama, Georgia, and Indiana. In the second segment today, Jason discusses the hybrid approach to property management, prompted by a Voxer message from client Bruce. As well, Jason speaks on three basic economic maladies; inflation, deflation, and stagnation. This drives the show to our final topic of Jimmy Carter and Malthusian thinking. Key Takeaways: [1:20] Atlanta, Georgia area property only 9 miles from the Hartsfield-Jackson Airport [4:30] Port city, Mobile, Alabama property offers low property taxes [7:00] Property Tour with Carrie in York, Pennsylvania [9:00] The latest empowered investor, Bruce, taking the hybrid approach [11:40] Firing your property manager, self-managing or the hybrid approach. Not all bad or mysterious [13:30] The three basic economic maladies; inflation, deflation, and stagnation [18:40] The carter administration was typified by Malthusian thinking [19:45] Jimmy Carter's infamous Malaise Speech Websites: www.JasonHartman.com/ask www.JasonHartman.com
Jason is joined with investment counselor Carrie to discuss some more current properties. Take a mini-tour with Carrie in York, Pennsylvania, or listen up for this auditory property tour through Alabama, Georgia, and Indiana. In the second segment today, Jason discusses the hybrid approach to property management, prompted by a Voxer message from client Bruce. As well, Jason speaks on three basic economic maladies; inflation, deflation, and stagnation. This drives the show to our final topic of Jimmy Carter and Malthusian thinking. Key Takeaways: [1:20] Atlanta, Georgia area property only 9 miles from the Hartsfield-Jackson Airport [4:30] Port city, Mobile, Alabama property offers low property taxes [7:00] Property Tour with Carrie in York, Pennsylvania [9:00] The latest empowered investor, Bruce, taking the hybrid approach [11:40] Firing your property manager, self-managing or the hybrid approach. Not all bad or mysterious [13:30] The three basic economic maladies; inflation, deflation, and stagnation [18:40] The carter administration was typified by Malthusian thinking [19:45] Jimmy Carter’s infamous Malaise Speech Websites: www.JasonHartman.com/ask www.JasonHartman.com
From poolside at their luxurious resort in Orlando, Jason and his mom take a look back at the weekend to examine what all they learned during Profits in Paradise. The two discuss the high quality of construction being done by the team in Florida, what they learned about their real estate business and takeaways from the Wealth Simulation game Doug ran. Key Takeaways: [5:20] The tools we have available for our real estate business can make us a lot more money than we could otherwise [8:36] Jason's mom absolutely loved the single family new construction first impression during the Friday property tour [14:11] James Malinchak's speeches reminded Jason's mom that you can often learn more things from your failures than successes [18:37] As real estate investors we're running Invisible Organizations [21:48] Mitch Russo's girlfriends letter to Jason about Profits in Paradise Website: www.JasonHartman.com/Properties
From poolside at their luxurious resort in Orlando, Jason and his mom take a look back at the weekend to examine what all they learned during Profits in Paradise. The two discuss the high quality of construction being done by the team in Florida, what they learned about their real estate business and takeaways from the Wealth Simulation game Doug ran. Key Takeaways: [5:20] The tools we have available for our real estate business can make us a lot more money than we could otherwise [8:36] Jason's mom absolutely loved the single family new construction first impression during the Friday property tour [14:11] James Malinchak's speeches reminded Jason's mom that you can often learn more things from your failures than successes [18:37] As real estate investors we're running Invisible Organizations [21:48] Mitch Russo's girlfriends letter to Jason about Profits in Paradise Website: www.JasonHartman.com/Properties
Dear [fname], With the frost on the pumpkins it is time to talk about the upcoming Multi-Family Investment Summit and Property Tour. A select group of just 15 investors will have the opportunity to join me either on January 13th or December 9th for the Summit. This weeks podcast is dedicated in giving you behind the scenes information on what the investment summit and property tour is all about and why in the heck I would do this for free!So, serious investors SHOULD spend the time in listening in on what to expect. You will be VERY glad you did. Have a great weekend! Darin
With the frost on the pumpkins it is time to talk about the upcoming Multi-Family Investment Summit and Property Tour. A select group of of just 15 investors will have the oppotunity to join me either on January 13th or December 9th for the Summit. This weeks podcast is dedictated in giving you behind the scenes information on what the investment summit and property tour is all about and why in the heck I would do this for free! So, serious investors SHOULD spend the time in listening in on what to expect. You will be VERY glad you did. Have a great weekend! Darin
What can we learn from Flipping property LA Style? #183 Property Tour with Adam Halen in Los Angeles 1. Solving peoples problems 2. Working with a team 3. Making profits To discuss ideas, Call Luke Moroney - 0400332377 - Search Party Property - Buyers Agents Sign up for our ‘Property Deal of the Week’ email (via our website) We have a referral program for those interested - DM me for info.
In this episode join Heather and Rob as they tour a couple of properties in the lovely Welsh town of Llandrindod Wells. Get all of the essential stats about the properties, in-depth information about the renovations and they discuss properties in different stages of renovation. Featuring Two 1 bed apartments in large flat blocks. We are on the ground finding deals with excellent profit margins through our extensive contacts and our proven negotiation skills. There are simply too many properties like this for our own portfolio so this equates to an opportunity for you. We are not just property sourcing, we are finding real deals with real potential. Let us do the hard work for you, finding, negotiating and overseeing everything so you don’t have to. Saving you time and money. Find out more on at propsourceuk.com
In this episode join Heather and Rob as they tour three properties in the beautiful Welsh town of Knighton. Get all of the essential stats about the properties, in-depth information about the renovations and they discuss properties in different stages of renovation. Featuring 2x 3 Bed Maisonettes and 1x Flat Block with Shop Attached. We are on the ground finding deals with excellent profit margins through our extensive contacts and our proven negotiation skills. There are simply too many properties like this for our own portfolio so this equates to an opportunity for you. We are not just property sourcing, we are finding real deals with real potential. Let us do the hard work for you, finding, negotiating and overseeing everything so you don’t have to. Saving you time and money. Find out more on at https://propsourceuk.com
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I've put together a summary of the properties viewed, pictures, videos and most importantly the numbers that we viewed during our time in Huntsville Alabama. See the properties I bought and the reasons behind the purchases. Glen Sutherland A Canadian Investing in the U.S. ITunes Podcast/ Youtube/ Stitcher GlenSutherland.com Glen@GlenSutherland.com
Memphis is a consistent and stable market. Mark brings back James, one of their team members out in the local market, to talk about the Memphis market and amazing things on the two-day Memphis investment property tour. He also talks about investing in Memphis and why it’s such a great cash flow market. James and his team has renovated, purchased, and sold over 235 single-family homes in Memphis, Tennessee that cash flow well and rent for very high-dollar amounts, making the cash on cash returns very attractive. Learn more about how you can invest in Memphis on the next investment tour. — I want to talk about Memphis and our next upcoming Memphis Investment Tour. For many of you, you know that we did a property/investment tour. I believe it was around the September, October timeframe. If you go back to an earlier episode, you will know that we talked about the Memphis Market and why invest in Memphis and why it’s such a great cashflow market. We can actually look back and talk about what we did on this two-day Memphis Investment and Property Tour because it was quite amazing. There was a lot of great content and education. We had some great speakers from all over the country and it was all packed into one and a half days. It’s happening again. We’re having another event in May and it’s an opportune time because they happen to have this world-famous barbecue festival or event that goes on. The timing is purposely done to coincide with that event. I brought James back on the show here. For those of you that don’t remember, James leads the team that we work with in Memphis. They are a great company and a great provider in terms of putting out fantastic income producing rental properties. In 2017, James and his team purchased, renovated and sold over 235 single-family homes in Memphis, Tennessee. The average prices of those properties were a $101,000. We’re not talking super expensive properties. They’re affordable. They cashflow well. They rent for a very high dollar amount making the cash-on-cash returns very attractive. These are great income-producing properties. James and his team in conjunction with our team here work with investors around the world to help you guys create passive income. As one of our top turnkey providers and partners in the Memphis market, they’ve now ventured out into building some new construction homes. They’ve built 23, 24 and they are ramping that up. That’s going to be a new thing that we’re introducing to you as well as on this Investment Tour. I don’t want to take all of James’ thunder. With that I want to welcome, James. If you missed our last episode, be sure to listen to From Zero to 35 Rentals in 4 Years – A Client Success Story. Enjoy the show! – – – – – – – – – – – – – – Download your FREE copy of: The Ultimate Guide to Passive Real Estate Investing. Get your FREE coffee mug by leaving us a Rating and Review on iTunes. Here’s how. See our available Turnkey Cash-Flow Rental Properties. Please give us a RATING & REVIEW (Thank you!) SUBSCRIBE on iTunes | Stitcher | Podcast Feed Learn more about your ad choices. Visit megaphone.fm/adchoices
Before we get on our show here, I want to remind you about our upcoming Memphis Investment and Property Tour that will be on October 6th and October 7th. It’s a Friday, Saturday. This is a great event. If you can make it, get in touch with our investment counselors here. We are offering free tickets, the tickets are normally $450, and we would love to see you and maybe your spouse down there or your business partner. What we are doing is hosting a unique event in Memphis, Tennessee. It will be a weekend of property tours, speakers and networking mixed with a little Memphis culture. Not only will you see great investment properties but the first full day is where we’re bringing together speakers from all over to address various aspects of today’s real estate investing. That’s going to be a breadth of information and topics. We would love to have you down there and see what we have going on in that great market. Again, this is October 6th and 7th. You can come in as early as Thursday, October 5th. I’m not sure if we have an event on Thursday but we definitely have an event going on on Friday evening. It’s a dinner and a networking mixer. Saturday is open-ended on Saturday evening so we can do whatever we want to do unless you want to fly out that night, but I think a lot of people are going to fly out on Sunday. Contact our office or send us an email through our website at NoradaRealEstate.com and we’ll tell you more about it. Today’s episode is about sheltering your rental income from taxes and maybe some other tax tips. When it comes to taxes, I pay my taxes, it’s not my favorite thing to do, but it’s something we just all have to come to grips with. Paying taxes just seems to be part of the American life now and ever since the Income Tax Act of 1913, there’s really no way around it. There’s a lot of code in the tax code. Unfortunately, you have to pay your taxes for any types of income you make. Fortunately, the US Tax Code has many, many rules that allow rental property owners to reduce their taxes and save money. If you own property, it’s a huge part of your tax strategy because it is the most tax-favored investment that you can get your hands on, that you can put your investment capital into, and the IRS rewards this type of behavior. If you don’t have property, you really should have some because the tax benefits are fantastic. I’m not a tax professional or a CPA but I do know many people who are tax advisors and specialists in that area and the fact that they are in the niche, that they deal with real estate investors, that really helps in helping educate you through this podcast, through articles as well as clients because we can put you in touch with them to minimize your tax impact or defer that taxable impact or in some cases, even eliminate completely and forever the tax impact of your income. Our show today is about sheltering and reducing your rental income from taxes. I have a great guest on who is a very, very sharp individual, so just stay tuned. If you missed our last episode, be sure to listen to >Investing in Memphis and Our Upcoming Property Tour Enjoy the show! – – – – – – – – – – – – – – Download your FREE copy of: The Ultimate Guide to Passive Real Estate Investing. Get your FREE coffee mug by leaving us a Rating and Review on iTunes. Here’s how. See our available Turnkey Cash-Flow Rental Properties. Please give us a RATING & REVIEW (Thank you!) SUBSCRIBE on iTunes | Stitcher | Podcast Feed Learn more about your ad choices. Visit megaphone.fm/adchoices
I want to just say thanks for your patience. I've been away for about eight weeks. I haven't done an episode in almost two months. The reason for that is because I've been traveling extensively here for actually the whole year but mostly throughout the summer. I spent about two and a half weeks traveling through Italy and up to Paris. That was a family vacation. The rest has been all business related. I've been traveling everywhere from Kansas City to Dallas to China. I actually just got back from Shanghai, which was just an amazing trip. I might talk a little bit more about that in my next episode because it's quite fascinating what is going on in terms of investment capital and foreign investment in the US. Aside from that, I plan to get back on a weekly recording schedule here as best as I can. I still have a lot of travel coming up here over the course of this month and the rest of the year. I'll do my best to continue to deliver content and bring on some great guests. In the meantime, I want to announce something that we haven’t done for a long, long time and we rarely do, and that is a combination of an educational seminar/property tour where you can actually just kick the dirt and walk around and see various properties in a market at different stages of development; from acquisition to demolition to renovation through to completion, so you can see everything that gets done, who’s doing it and how it gets done. That’s combined with some amazing speakers, everything from finance to 1031s and whatnot. That’s all packed in about a day and a half. It won’t be a long drawn out four-day event. It will be short, sweet, you come in on one day, you have a day and a half of networking and education and property visiting. Then you could leave in the second half of that day or the following day. That’s what this episode is about. It’s investing in Memphis, Tennessee and some information about our upcoming property tour. I have a great guest. He’s one of our team members out in the local market. He knows the market very well. Memphis has been a great market for us. It always has been. It’s a perennial market. It’s very strong. The real estate market there in Memphis continues to grow. It has been what I call a perennial cashflow market. You don’t see wild fluctuations and appreciation. They’re strong, steady, stable rates of return in cashflow. If that’s what you’re looking for, it’s a perfect market because it’s got everything you could possibly want aside from hypergrowth in terms of price appreciation. We don’t have an inflated market but we do have what a lot of investors want, and that is solid, steady, consistent income and rates of return. We're going to dive into that and bring on James, our partner here. Stay tuned. If you missed our last episode, be sure to listen to >Daniel Amerman – Inflation, Deflation, Debt and the Coming Housing Crash? | PREI 088; (Edit)">Daniel Amerman – Inflation, Deflation, Debt and the Coming Housing Crash? Enjoy the show! – – – – – – – – – – – – – – Download your FREE copy of: The Ultimate Guide to Passive Real Estate Investing. Get your FREE coffee mug by leaving us a Rating and Review on iTunes. Here’s how. See our available Turnkey Cash-Flow Rental Properties. Please give us a RATING & REVIEW (Thank you!) SUBSCRIBE on iTunes | Stitcher | Podcast Feed Learn more about your ad choices. Visit megaphone.fm/adchoices
Jason has left the most expensive city in the US, NYC, and is enjoying fly over state pricing once again. The meat of this episode is a recording of a Creating Wealth Live session which focuses on inflation. We all know inflation is right around the corner as it is the only way the government can get out of the current economic climate. Inflation will erode our purchasing power, our stocks, our savings and the rich will get richer. Investing in Income Property is your best weapon against the forthcoming inflationary increase. Key Takeaways: [02:54] Using a movie or Broadway play can get the attention of the political left. [06:29] Investors should align their interests with the government and the powers that be. [09:18] The Venture Alliance Mastermind in Chicago and the Oklahoma City JHU Live and Property Tour. Creating Wealth Live Clip [10:42] The 6 ways the government is likely to inflate themselves out of a mess. [12:54] Understanding inflation in all of its forms. [15:53] The political left uses the guise of compassion and the right uses the guise of fiscal responsibility. [17:57] The government imports a deflationary force. [21:53] All the bills Americans need to pay are increasing while the price of ‘wants' is going down. [25:39] How does income property counteract inflation? Mentioned in This Episode: Renter's Warehouse - Get 3 free months of property management with this link. Jason Hartman Venture Alliance Mastermind Hartman Education
Jason and guest, Bob Filner take part in a jovial tete-a-tete about the Trump Administration, how the remiss government regulators are towards financial institutions and the reinvention of the democratic party. As the former House Committee Chairman on Veteran's Affairs, Bob Filner tackled Jamie Dimon and JP Morgan by threatening to press charges for their unethical treatment of military personnel by foreclosing on their mortgage loans. Mr. Filner was also the Mayor of San Diego and this interview comes on the heels of the release of his new book, Trumping Trump: Making Democrats Progressive Again. Key Takeaways: [03:18] Retargeting keeps people in a perpetual state of stale. [14:44] The Venture Alliance Mastermind and the Oklahoma JHU Live and Property Tour will include the micro and macro benefits to income property investing. Bob Filner Interview: [17:51] Bob Filner shares the purpose behind his book, Trumping Trump. [20:19] Will the Tobin tax discourage trading and betting on non-asset based investments? [23:13] Bob would like to rebrand the democratic party as the party of the working people. [25:11] Bob threatened Jamie Dimon and JPMorgan for foreclosing on military personnel's home while they were serving in active duty. [31:13] It is pathetic how easily you can buy justice. [32:05] Does the financial system need less or more regulation? [42:14] The problem with the Trump administration as Bob Filner sees it. [47:20] Trump's policies could have a devastating affect on the US economy. [49:16] What benefits the American worker more jobs and higher pay or low cost imported goods? Mentioned in This Episode: Renter's Warehouse - Get 3 free months of property management with this link. Jason Hartman Women's Investing Network Podcast Trumping Trump: Making Democrats Progressive Again by Bob Filner REPREF51@gmail.com Venture Alliance Mastermind
This episode is very telling about the current and future state of the current US economy. Jason welcomes Tempo Funding Managing Director Mike Zlotnik to the show to discuss the what factors gave rise to and will ultimately tank the economy. As listeners to this program, you know real estate is the best class to hedge against inflation but if you also invest with institutional investors it may be time to fold your hand and become your own decision maker. The Oklahoma City JHU Live event and Property Tour also includes a special panel of experts who will share their stories and answer your questions. Key Takeaways: [03:30] Yield rate and Cap rate compression defined. [08:01] After the 2008 crash the deal flow was abundant. [10:04] Institutional investors get rewarded for deploying capital, not finding the best deal. [15:04] Inflation is here and markets are softening. [20:44] Stagflation is a bizarre scenario but it is likely to happen. [29:19] Investors must prepare for the worst-case scenario. [30:51] Tempo Funding provides short and long-term hard money lending. Mentioned in This Episode: Renter's Warehouse - Get 3 free months of property management with this link. Jason Hartman Venture Alliance Mastermind Rent Control Movie Tempo Funding
Elisabeth recently went on the Memphis property tour with Jason Hartman's group, and was able to meet with two women who recently started investing in real estate, Jill O'Conner and Patti Ziegler. Elisabeth spent some time with the two and found out what led them to real estate investing, what they're up to and why they picked Memphis, as well as what they learned about investing that they want to share with others. Later she talks with the local market specialist for Memphis about what makes the city a place you would actually want to invest. With companies like FedEx, and schools like Rhodes College and University of Tennessee Medical, as well as being a transportation hub, the area provides a good opportunity to get solid returns on investment for reasonably priced homes. Key Takeaways: [2:45] More about why WIN came into existence [5:28] Tip of the Day: Gratitude [8:00] How starting from a place of gratitude changes your whole day [11:02] How Patti Ziegler got started investing in real estate [13:41] Why Patti chose to invest in Memphis [17:14] Jill O'Conner's journey to real estate investing [19:39] What led Jill to real estate investing in Memphis [21:46] Jill's advice to people who are preparing to invest in real estate [26:32] Meet Jason Hartman's local market specialist for Memphis, and what about Memphis makes it a good place for investors [30:06] Schools in Memphis that are attracting students and workers, as well as some ways that Memphis is a hub for the mid-south Website: www.WomenInvestingNetwork.com
Jason shares the details for the Creating Wealth Seminar and Property Tour in Memphis, the Venture Alliance Mastermind in Las Vegas and what not to buy from your favorite local coffee shop before introducing guest, Julie Benezet. Julie is the Founder and Managing Principal of Business Growth Consultants and former Director of Global Real Estate at Amazon.com. She joins Jason to give us a behind the curtain look at Amazon's fascinating build out and philosophy. Julie also shares key points from her new book, The Journey of Not Knowing: How 21st Century Leaders Can Chart a Course Where There is None. Key Takeaways: [1:42] Jason wants you to live long enough to enjoy the fruits of your investments. [5:28] A Creating Wealth Seminar and Property Tour is set for the end of March in Memphis, TN. [6:49] Harry Dent has made some crazy predictions and will come back on the show to explain them. [13:30] Information for the Venture Alliance Mastermind: Your Financial Friends event in Las Vegas. Julie Benezet Guest Interview: [17:01] Julie details her business planning efforts at Amazon.com. [21:55] Amazon's ‘Get Big Fast' mantra required employees who knew the rules of distribution. [24:40] How Amazon chose locations for their fulfillment centers. [28:17] Unpacking Julie's book to understand the 4 steps required to do business in the 21st century. [34:59] Julie reviews the 4 steps. [35:56] Germany was the location of Julie's defining moment as a leader. [42:35] Pay attention to your customers! Mentioned in This Episode: Jason Hartman Creating Wealth Seminar and Property Tour in Memphis Venture Alliance Mastermind JHart88 on Voxer Foundation for Economic Education Business Growth Consulting The Journey of Not Knowing
Jason shares his 10 Commandments of Successful Investing in this audio recording of his live presentation during the Orlando, Florida Creating Wealth Seminar and Property Tour. He looks back at getting his real estate license at the age of 19 and the decisions he made when he sold his first company. Jason has become a multimillionaire by living by these guidelines and you can too. Income property is the most historically favored asset class. Why gamble your money in stocks and bonds when you can make solid, long-term investments in the US real estate market? Key Takeaways: Jason's Editorial: [1:55] You need to build a portfolio before you consider protecting your assets and estate planning. [12:58] The Denis Waitley poem that changed Jason's life. The 10 Commandments of Successful Investing Live Presentation: [16:27] Thou shalt become educated. [21:40] Seek guidance: Have a team including an investment counselor. [22:56] Thou shalt maintain control. [25:30] Thou shalt not gamble. [27:53] Thou shalt diversify. [29:54] Be area agnostic. [31:02] Thou shalt use borrowed money. [33:42] Thou shalt only invest where there is universal need - Avoid trends. [34:35] Purchase tax-favored assets. Mentioned in This Episode: Jason Hartman Hartman Education - Free Garrett Sutton Video @jhart88 on Voxer Denis Waitley Creating Wealth Ep. #150
Michelle Hawkins is a client who has attended a Meet the Masters live event and the most recent Creating Wealth Seminar and Property Tour in Cincinnati, Ohio. Michelle crunched her financial numbers only to discover that her pension was never going to be enough to support her during her retirement and she knew she couldn't count on Social Security. Her investor journey started by reading all the investment books on the library shelves which led her to the sound decision of investing in income property. She shares her story and some sound investing advice. Key Takeaways: Jason's Editorial: [1:41] Was the Orlando shooter on prescription drugs? If so, will anyone report on it? [8:09] The pension system will not support you. You need to find a diversified wealth creation system now. Michelle Hawkins Client Interview: [13:56] Michelle highly recommends attending a live event. She is proof that it works. [17:57] The government basically says your money doesn't really belong to you until they decide to give it back to you when you are 69. [21:53] Michelle and Jason take a hard look at inflation, real interest and tax rates. [26:25] Misconceptions about the stock market in Michelle's research led her to investment in income property. [35:50] Physically vetting the system and the investment markets allows investors to buy with confidence. Mentioned in This Episode: Jason Hartman Meet the Masters Hartman Education
Jason takes time away from his professional speaking engagements to investigate several possible new markets in Florida. The Port Richey and Greater Tampa areas show promise as new businesses and entertainment centers are slated to be opening soon. While it is important to open new markets due to low property inventories but it is important to remember that the quality of the investment property far exceeds the importance of the quantity of real estate properties in a portfolio. Win an all expense paid trip to the Cincinnati Property Tour & Creating Wealth Seminar! Go to jasonhartman.com to find out how. Key Takeaways: [2:53] There are 3 different ways to win tickets to the Cincinnati Property Tour and the Creating Wealth Boot camp. [10:59] The Federal Reserve Room on Jekyll Island brings to mind that Central Banks control governments around the world. [18:52] The concept of investing is to plan for the future today and delay gratification to save capital. [22:13] Inspecting the Greater Tampa and Port Richey areas of Florida, a no income tax state. [30:45] Opt in to our email list for all of our great content, subscribe to our show in iTunes and leave us a review. Mentioned in This Episode: Jason Hartman - Contest Entry Information @JasonHartmanROI on Twitter #ShameonFacebook Jason Hartman IMN Slides Hartman Education
When your car chauffeurs you on a long road trip it is proof that it is an amazing time to be alive! Jason is interviewed by Kerry Lutz from the Financial Survival Network and discusses the Panama Papers, the most historically proven asset class, income property, and the underlying corruption of our monetary system via the US Government and the Federal Reserve. Join us for our Jekyll Island Venture Alliance Mastermind trip and a short Jacksonville, Florida property tour. Key Takeaways: [1:38] Jason takes a long trip in Tessa, the self-driving car and discusses the pluses and minuses. [6:03] Arbitrage is exploiting the differences in things like income property investments, supply and demand curves and commodities prices. [9:16] Upcoming events include the Venture Alliance trip to Jekyll Island with a short Jacksonville property tour and the next Creating Wealth Boot camp and the Ohio area property tour. Jason's Interview with the Financial Survival Network: [16:27] The people in government and on Wall Street set up offshore trusts and corporations to hide money, as the Panama Papers show. [21:19] Why is there no start up solution to the Wall Street problem or the government problem? [25:33] The Creature from Jekyll Island is the book about when the Federal Reserve was created. [29:17] Aligning your interest with the government because the government will always take care of itself first. [34:02] Paying small government fines is part of the Central Bank's' business plan. It's much less than what they steal by manipulating the system. Mentioned in This Episode: Jason Hartman Venture Alliance Mastermind Property Tracker Property Evaluator Financial Survival Network
Be sure to sign up for our Property Tour and Creative Wealth Seminar in Mid-November in the well-rounded city of Orlando, Florida.There are major medical companies investing in the surrounding area. There are also basics to the State of Florida which 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 when the real estate market there corrects itself investment properties will appreciate to their proper values. Key Takeaways: Jason's Editorial: [1:14] A glitch in the previous Orlando podcast [2:56] Orlando Property Tour in mid-November including the Creative Wealth seminar [6:50] Meet the Masters in January [7:42] The new Joe Investor segment and more great real estate investment content Orlando Local Market Specialist Interview: [8:57] Re-introducing the Orlando market [10:10] Cash flow positive in a highly desirable market [10:54] The importance of demand and desirability [13:55] Judicial foreclosure states versus non-judicial foreclosure states [15:02] Removing the supply drives the price upwards and eliminates cash flow properties [17:04] Buying below replacement costs in Orlando [17:30] Appreciation and regression to replacement cost are two different things [18:28] Las Vegas may be a massively over speculated, natural growth was needed [20:39] Florida basics create an environment for job growth [22:09] Everybody knows Orlando, Florida - It's more than Disney [23:45] Light rail systems are up and running [24:40] The market will correct itself; a cyclical evolution [27:25] The right team, great deals are available in a landlord friendly environment [29:07] Our management team was built for investors by investors [31:09] Nobody wants an eviction but if it happens our group does it well [34:56] Making the right choice in the real estate market - look 10 years in either direction [37:50] Looking at linear about to go hybrid markets like Orlando, Chicago Mentions: JasonHartman.com
Being stranded at the airport waiting for a flight is never fun but Jason and Fernando make the best of it by recording their observations of the investment property tour of Chicago and Grand Rapids. Overall, Chicago looks promising with strong providers and good properties. Grand Rapids was charming and offered many financing choices for current and future investors. A quick stop was made to Detroit to get feel for the area and look for opportunities that may be hiding there. The extra stop proved to be a disappointment based on the city's state of disrepair and mass exodus of previous inhabitants. Key Takeaways: [3:09] A Mastermind meeting on Monday & Tuesday [3:42] A semi-private property tour [4:09] Met local market specialists and in-house lending department [6:32] The tenant turnover rate in an apartment in Chicago [7:21] Tenant turnover rate in a single family home is much longer [8:10] Virtual apartment investments [9:00] Refinance discussion on a future episode [10:06] Land contracts in Grand Rapids [10:39] Direct buying properties via self directed IRA [12:40] Cosmetic changes are easy on good investment properties [14:18] The Cold Stone Philosopher's Club [15:28] Detroit was depressing [17;39] Corrupt mayors & declining auto industry led to the death of Detroit [19:21] Property taxes in Chicago [20:05] Providers make it possible to remove maintenance costs [21:55] Judicial foreclosure states are good for investors [23:25] Chicago is a world class city [24:16] Differences of a small provider versus a large provider [26:00] The small group tour was intimate and enjoyable
Jason Hartman reads a listener question about the rental rates decreasing and what to do about it. He also invites Jurgen Neugebohrn to the show and answers some of his personal questions. Jurgen is in the oil industry in Saudi Arabia and is interested in the real estate market. He has some very interesting questions for Jason to answer and picks Jason's brain on investing in real estate. Key Takeaways: 4:50 – You don't hear about the people who have lost money investing in low rent to value ratio markets. 7:25 – Jason reads a listener question about rental rates decreasing. 12:15 – Remember to join our Memphis property tour! 13:50 – Jason introduces Jurgen, an online listener, to the show. 19:50 – What's Saudi Arabia like? 23:30 – According to Jim Norman, the reason why oil prices are so low now is because the US is trying to economically hurt Russia and Venezuela. 25:00 Jason explains why he disagrees with Harry Dent. 32:00 – Jason doesn't have a check list on what you should buy because properties vary depending on the investor's needs. 35:35 – Jurgen asks one last question about Fernando's independence day. Mentioned In This Episode: The Oil Card by Jim Norman
In the beginning of the episode, Jason announces that for his 500th Creating Wealth show he will have Guy Kawasaki on as a guest. Please look forward to that episode on Wednesday. On the podcast, Jason answers a couple of listener questions and talks about how Clayton Homes is using deceptive practices and fooling home owners. He also reminds his audience that the Memphis property tour is coming up and that his team has booked a dinner at Graceland where his property tour attendees may get a chance to see Elvis Presley himself! Please visit JasonHartman.com for more information on the property tour. Key Takeaways: 1:30 – Guy Kawasaki will be the 500th guest. Look forward to listening to it on Wednesday. 6:00 – Jason plays and answers a listener question. 16:30 – Jason answers another listener question about how he allocates his investment funds. 23:50 – You can now have Jason as a silent partner in your real estate deals. 34:00 – Some deceptive practices have been happening at Clayton Homes. 40:20 – Remember the hamburger that was created in a lab a couple of years ago? Well, it costs $11 to make today. 45:50 – Don't forget about the Memphis property tour. Go to JasonHartman.com for more info. Mentioned In This Episode: http://www.seattletimes.com/business/real-estate/the-mobile-home-trap-how-a-warren-buffett-empire-preys-on-the-poor/
Jason Hartman's introduction for today's Creating Wealth Show was recorded at the November 2014 Property Tour in Birmingham, Alabama. It features a mini-interview with Jonathan, one of the tour's attendees, who is a 25 year old with a duplex already under his belt and who has big real estate aspirations for the future. He gives his personal account of what it's like to attend the Creating Wealth live events. Later, Jason Hartman speaks with Chris Cabanillas of Cabanillas Law Firm, who is an expert in foreclosure and shadow inventory. These are the main topics of discussion throughout the show, but Chris also gives an insight into what you should expect from working with an attorney and considers the issues associated with judicial foreclosure. Key Takeaways 05.00 – When working in a partnership, assess each member's contributions and then work out how to offset the equity from that. 09.52 – If foreclosure actions aren't being correctly carried out, the shadow inventory is just going to continue to grow. 15.22 – With so few of these foreclosure cases even going to court, the majority could be won on default judgement. 19.03 – Ease of foreclosure for lenders changes drastically in judicial to non-judicial states. 21.25 – Chris Cabanillas gives his advice for those facing foreclosure. 25.44 – The personal, human aspect of a short sale might be what leads to higher overall prices. 27.53 – The fee structure will change depending on the attorney's firm and the jurisdiction they work within, but the most important thing is to be able to meet face to face with your attorney. 36.05 – Foreign investment is filling up places like Manhattan and the investors may never even spend a night there! Mentioned in this episode Slicing Pie by Mike Moyer
Today my friend JoAnn Fleming of Grassroots America We The People joins me to discuss being a more effective activist. JoAnn has been involved in politics for over 20 years and is a for county commissioner. She is also on the board for the Tea Party Caucus in Austin. JoAnn is known across the state for her blunt honesty on the issues facing Texas. Along with traveling the state with the Life, Liberty, and Property Tour, she somehow finds time to write articles for Breitbart Texas. Many of the points she discusses come from one of those articles: “They” will not like you. Get over it. If name-calling and confrontation make you want to throw up or cry, don’t sign up for the front lines. If your heart beats faster when a politician walks into the room, and faster still when they know your name, and if you live to be loved and approved of by politicians, you are a political groupie. Get. Out. Now. You must earn the right to lead. Self-anointment and self-appointment don’t make you fit to lead anybody. Recommended reading – a short, but powerful blueprint for servant leadership – John Maxwell’s “The Right to Lead: A Study in Character and Courage.” Stay out of sandbox fights. If Activist A has a personal beef with Activist B, let them duke it out. Do not get pulled into personal skirmishes. Do not share, forward, or air dirty laundry and personal beefs via social media. It makes you look small, petty, and like you never left grade school. Be a team player when the team has the right goal, but do not lose your own identity and credibility to go along with the crowd. Truth never depends on consensus.If 100 people do something foolish, it’s still foolish. Participate in conservative coalitions, but remember your focus must always stay tight on the fight to save Texas and our country from Big Government corruption and to advance the cause of liberty. Remaining unwaveringly true to that mission means you must always be willing to be the skunk at the party, the hard-liner at the compromise table, and the toughest person in the room. Be ever aware of snares that lurk in privilege, special recognition, and being accepted into certain coalitions. If you can stay true to the mission while working in a coalition, do it. After all, you are in the persuasion business. Do not bear false witness against a neighbor, candidate, or officeholder. Do not spread rumors, which are unsubstantiated claims. If there’s not enough evidence to prove the case in court, then it’s hearsay. Discard it. Big Government candidates and officeholders have plenty on the public record to oppose. Don’t exaggerate or tell half-truths. To do so is to lie, which will destroy your credibility. Work hard to persuade those you can, but don’t waste any more time on the perennial ostriches with their heads stuck in the sand. They like it that way because it’s safe or popular. Shake the dust off your feet and move on. Strive to do what is right, at the right time, for the right reason. Wisdom dictates that you don’t always speak just because you can. Too much speaking for the sake of doing so will blend you into the wallpaper and reduce you to background noise. Be judicious in strategic planning and execution. Fire only when ready. Follow Davey Crockett’s advice: “Be sure you're right, then go ahead.” Never pretend to be an authority on something you know just enough about to be dangerous. For meetings with public officials, speaking engagements, and media interviews, be prepared. Do your homework and know your topic before you open your mouth. Knowing your topic includes some listening. Never forget to say “thank you” to the folks who have your back – the team. Successful activism happens when a group of very committed, principled people with varying gifts and talents work together on a wise course to achieve a goal. Some are made to be on the frontlines. Others are best suited for behind-the-scenes work, logistics, strategy, and resource gathering. Frankly, some of the most valuable people in the world to me are those who say, “I’m praying for you” and really mean it. I hope you enjoy this weeks episode and make sure to come back next week for more twistedness. Remember to Subscribe,Rate, and Review on iTunes or Stitcher and e-mail me at ProlifeTexas@gmail.com to be entered to win an American Flag from Sen. Ted. Cruz’s Office. Enjoy and don’t forget to vote! Jason Vaughn TXProlife.org @JasonVaughn
Today's Creating Wealth Show is all about the ins and outs of real estate investing. Jason Hartman discusses what you can do to find your way on the path to wealth and how you can make the most of taxation (really!), before going on to see what a bullet-proof property in Birmingham, Alabama really looks like with their local property expert, ahead of November's Property Tour. Key Takeaways 1.45 – The path to wealth lies in diminishing our wants as we simultaneously increase our incomes. 07.05 – With taxation being everyone's single largest expense, we need to find a way of working that in our favor. 10.05 – Depreciation tax deduction is, without a doubt, great for real estate investors. 14.04 – Income property gives you the benefit of trading assets through your life without paying taxes – legally. 19.43 – Yet another benefit is that travel expenses such as gourmet restaurant dinners and luxury hotel stays can sometimes be tax deductible. Even trips to the Creating Wealth Seminars and Property Tours could be deductible! 23.05 – Be sure to keep subscribing to the Creating Wealth Show to get access to a bunch of new interviews with amazing, upcoming guests. 25.32 – Centre Point, Alabama is known as a great rental market due to its great school system and fantastic renters living locally. 29.03 – Tenants will be selected for initial leases based on how well they fit to specific criteria. 32.25 – As real estate investors, we're interested in linear markets, but you should still follow the trends of the cyclical markets. 33.53 – Head to www.JasonHartman.com for detailed proformas and more property information.
Jason Hartman's topics for discussion today range from the business impact of Colorado's legalization of marijuana to correctly assessing a company's revenue to the changing demographics of today's society. Later he talks to the author of Life Purpose Boot Camp, Eric Maisel about how we need to change our perception of meaning and anxiety in the creative world. Maisel's atheist beliefs lead to a spirited exchanging of views, making today's podcast informative and passionate. Key Takeaways 03.20 – Be sure to register for the Birmingham Seminar and Property Tour at www.JasonHartman.com to take advantage of Early Bird ticket prices. 09.00 – While overall revenue figures are important, you can only really assess a company by looking at its revenue per employee. 12.30 - Jason discusses the legalization of marijuana in Colorado, but considers it from a business point of view. 14.50 – Generation Y is the largest demographic cohort, yet few even understand its impact and influence. 20.27 – There are growing trends and patterns between marital status and home owners' requirements. 27.03 – Eric Maisel's movement is not about searching for meaning, but about creating meaning. 34.15 – It's important to assess if your life as it is has meaning, but it's more difficult to throw everything away because of that. 36.15 – Part of the anxiety problem is that 99% of performing artists get no feedback whatsoever. 38.10 – The key to reaching this more creative level really lies in the morning creativity practice. 46.20 – Religion still has a very strong societal hold on people and it can be this sense of community which makes it hardest to leave. 50.22 – Maisel claims we have two choices with the future of religion: perpetuate lies or be honest and see which side produces higher morality. 52.23 – For more information, head to www.EricMaisel.com, and if you're interested in learning more about natural psychology, you can download a free copy of Maisel's book Natural Psychology at www.NaturalPsychology.net
In preparation for the upcoming Property Tour and Creating Wealth Seminar, taking place in Birmingham, Alabama on the 22ndand 23rd November, today's Creating Wealth Show has Jennifer as its guest. She works as part of the local market specialist team in Birmingham and takes the time to fill us in on the trends she's noticed in the property market, the influence of the Section 8 program and some general tips on how to make the most of this part of the country for potential investing. Key Takeaways 01.20 – The next property tour will be taking place the weekend before Thanksgiving in November in Birmingham, Alabama. 05.40 – Bulletproofing a property is all about removing anything with mechanical parts which might prove a potential issue to the tenant. This ends up making investors' lives much easier. 09.40 – In some markets, additional selling points don't actually increase rental rates at all. 12.40 – Birmingham is fortunate to have a very stable market and additional houses for rehab are found through MLS, auctions and through mailing campaigns to potential sellers. 20.00 – It's true that working as an investor within a Section 8 program isn't always for everyone, and that all depends on your own personality. 21.45 – All properties are done up in compliance with Section 8, so regardless of the tenant's personal profile, the property is ready for them to move in after approval. 23.00 – In most of the areas of Birmingham, healthcare and manufacturing are the largest employment industries. 25.43 – The latest statistic shows that around 43% of Birmingham's population is rental based, which is a great pool to pull from.
Introduction: Join Jason Hartman and his mom on this episode of The Creating Wealth Show as they discuss their long road trip through several markets including Cleveland, Cincinnati, Columbus, Nashville, Birmingham and Dallas. You'll learn about the “minimalist management” philosophy in creating bulletproof rental properties that require very little maintenance and a good overview of several markets. Also, a big thank you to all of the doctors in the audience who provided advice and support relating to my mothers carotid artery surgery. She's doing well in the Cleveland Clinic provided a top-notch medical experience. Visit www.JasonHartman.com to view properties in these markets and to register for our Little Rock Property Tour and Creating Wealth Bootcamp in late September. Happy investing! Key Takeaways: · (1:40) Brief update about Jason's Mom's post-surgery health & the Cleveland Clinic · (5:54) How to handle late rent for long distance self-managed properties · (11:55) How to handle long-distance evictions without a property manager using an eviction service · (14:49) A special message from Bill Clinton · (18:28) Pleasantly surprised by downtown Cleveland · (21:23) Moving on to Birmingham and minimalist management styles · (26:44) Coming up in mid-late September: Little Rock Creating Wealth Seminar and Property Tour Links: www.JasonHartman.com Audio Transcription: ANNOUNCER: Welcome to Creating Wealth with Jason Hartman! During this program Jason is going to tell you some really exciting things that you probably haven't thought of before, and a new slant on investing: fresh new approaches to America's best investment that will enable you to create more wealth and happiness than you ever thought possible. Jason is a genuine, self-made multi-millionaire who not only talks the talk, but walks the walk. He's been a successful investor for 20 years and currently owns properties in 11 states and 17 cities. This program will help you follow in Jason's footsteps on the road to financial freedom. You really can do it! And now, here's your host, Jason Hartman, with the complete solution for real estate investors. JASON HARTMAN: Welcome to the Creating Wealth Show! This is your host Jason Hartman, and this is episode #389! Thanks so much for joining me today. I kind of feel like I haven't been with you in a while! At least not directly. In that we've played a lot of interviews with guests and so forth, but not that many where I've just kind of been talking to you. So I'm really glad to just be talking to you today, and going over a bunch of issues. And I'm actually on the way to the airport. I'm here in the south, in beautiful Gulf Shores, Alabama, and Mom is with me, she's taking me to the airport. The first thing I wanted to say is, since I announced my mom's medical condition on the show, several weeks back, thank you so much to all of you. I guess we've got a lot of doctors in the audience, so we really appreciate the calls, and the emails, and the advice we got from you, so thank you very much for that, and I'll give you a little update into what has happened since then. Here's mom. Mom, say hello! Surgery in Cleveland MOM: Hi, everyone. I just want to say thank you also, for all of the concern that Jason's audience seem to show about my carotid artery operation, and just want to let you all know that everything turned out terrifically well at the Cleveland Clinic. That is just a classy place to go, if you have anything wrong. JASON HARTMAN: Good stuff. I would totally agree; the Cleveland Clinic is an incredible operation. I was very impressed. So, with all of that, real estate is kind of in our DNA. What happened is, I actually flew to Cleveland to meet my mom there, and she drove up there, and, well, I was in Cleveland, we were there for about a week with her recovery and so forth from the surgery, that went very well, as you just heard, and I met with our Cleveland local market specialist, who actually is one that we've been working with for quite a while in another market. He formed an alliance with a group up in Cleveland, and I met with him, and I looked at their properties, and I gotta say, I did not think I would like Cleveland very much. We have shied away from a lot of the previously blighted markets. We're still shying away from the real blighted ones like Detroit. But, you know, I was pleasantly impressed with Cleveland. I really was. It was amazing. Now, I was impressed with all of the extensive downtown redevelopment projects; I was impressed with the properties, and the cash flow on those properties; I was impressed with the rehab. Again, we're working in Cleveland, with the same provider we've been working with for many, many years in another market. So, you'll hear more about that, and you'll hear more about his partner in the Cleveland market that's doing the direct business. More on that to come. I did shoot some video, and I'll share that with you on our YouTube channel, and maybe we'll even play the audio track from some of that video. We might even do that on this podcast, time permitting, because one of those audio tracks is really just a conversation, while the other videos are looking at properties, and so the visual helps. But for the conversation, we can probably just play the audio part of that video on the podcast here today. And then, mom and I, after looking at Cleveland—oh, mom, you gotta share the funniest thing. And I was very concerned about you during the surgery, as I was pacing around the waiting room and so forth there at the Cleveland Clinic. But I knew you were okay when you were in the intensive care unit and you demanded your iPhone, and what were you doing on your iPhone? I actually took a funny picture of you, why don't you talk about that? MOM: Well, I had the operation the 2nd or 3rd day of the month— JASON HARTMAN: It was the 2nd, it was July 2nd. MOM: Okay, it was July 2nd. Anyway, the rents are supposed to be in my bank account on the first day of the month. So, I was simply calling those that I didn't think had paid yet, that weren't registered in my bank to pay their rent, immediately. JASON HARTMAN: I know my mom's been on a few shows before, everybody, and you've heard her talk before. She's the—I call it an extreme do-it-yourselfer. She's not a do-it-yourselfer; she's an extreme do-it-yourselfer. That mansion in which you live, you probably would have built it yourself if you could have. MOM: I could have gotten rid of all of the bad health. JASON HARTMAN: Yeah. I tell you, building a house is a nightmare project. So I would never recommend that to anybody. But you know, that was your childhood dream ever since you saw Gone With The Wind as a little girl. But anyway, what you do, that I think is kind of interesting—number one, you self-manage all your properties. You don't use managers. And you self-manage from a long distance. You have properties as far away as about 2,000 miles or so, and then you have closer properties that are within, I don't know, maybe 60, 80 miles. Biloxi, Gulfport, that's where you've got one. You've got another one in Tuscaloosa I think, right? MOM: Yes, uh huh. Those are the closest. JASON HARTMAN: Do you have anything in Mobile, Alabama? MOM: No, uh uh. Dealing with Late Rent JASON HARTMAN: So, those rental properties, what you do that's interesting, is you have all your tenants deposit the rent into your bank account. So, you bank with a big national bank, and they're responsible for going to the bank and depositing the money into your account on the first. And I remember when you were in the intensive care unit, and this was literally, I mean—look, folks. I tried to stop her. I tried to take the phone away. She wouldn't have it. Just, you have to know my mom to understand that. You're not gonna stop her from doing anything. And so, you had a sheet of paper there, and you were looking at the deposits, and you had a pencil, and you were writing down on a sheet of paper which ones had deposited, and you discovered that of all your rental properties, four people had not made their deposit, and you were calling them on your iPhone from the ICU, where they strictly say that you are not allowed to have phones in there. MOM: Well, actually, it was only three people. The bank had kind of made a mistake on one of the tenant's deposits; I couldn't quite recognize it, but they corrected that the next day, and the tenant told me that they had definitely deposited, and they were telling the exact truth. So it was only three people that hadn't deposited immediately. JASON HARTMAN: What strikes me as interesting—and again, if you use property managers, you don't have this opportunity—but I remember listening to you talk to your tenants on the phone, and what strikes me as interesting is how I think that because you have this kind of a personal relationship with them—of course it's a business relationship, you're not friendly with them, so to speak. You're not getting too close to them, in other words. But because they know you, and they view you as an actual person, rather than some sort of nameless, faceless institution, I feel that you exert some more pressure over them to get them to pay, and pay quickly. Do you agree, or have anything to say about that? MOM: I just make it very clear that I cannot tolerate late rent payments when they sign that lease. And they know that I expect and demand that my rent be paid the first day of the month. JASON HARTMAN: So, tell the listeners kind of how you handle that, and what you say to people, and things like that. And by the way, folks, we're gonna cover a lot of other subjects in this show, in this episode, so I'm just going over a few things here that struck me as kind of funny with mom. But, tell the listeners how you handle that, what you say to them. MOM: Well, I simply call them and say, hi whoever it is on the other end of the line. I don't see your rent in my bank deposit yet, and is there a problem, or did you already put it in, or what is going on? And they tell me what has happened. And I say, look, you know there's a $60 late fee if you don't have the rent in there the first day. I really do not want your $60. I simply want your rent on time. When will the rent be put in the bank? And they tell me. And if it isn't in there on that first day of the month, I say, well, be sure to put in the $60. JASON HARTMAN: For the late fee. Okay. And do they usually do that? Do they cooperate, and put it in? MOM: Yes, most of them all do that. There is one tenant that does not do that, and all of those $60 late fees will simply be deducted out of their security deposit when they leave. JASON HARTMAN: Okay. So, now, you did have a problem, though, that was kind of stressing you out on one of your properties. And this is a long distance property again; it's about 2000 miles away from you, so, it's far away, and you actually called up a real estate agent, I think you were called a Century 21 office, and kind of describe for the listeners that whole story. And that happened this month. You know, these are unusual, but it happened to happen this month, you happened to be in the intensive care unit at the Cleveland Clinic, which I think is ridiculous that you were doing this, but, I don't know. Maybe that's what keeps you alive, is you have a purpose, you know? You knew you had to recover from surgery, and recover quickly, because you had to collect your rent. So, it's kind of like Viktor Frankl's Man's Search For Meaning. Another version of it. The modern version. MOM: Well, what happened is that this tenant is now—we're in the eviction process. And the tenant had moved in a girlfriend, and he simply didn't pay. So, I called a local real estate agent, and I told them the situation, and I asked them to, would they please go over there and just check and see if the place looked like it had been abandoned? If tenants were still living in there, or what. Anyway, the gentleman, very nicely did go over there, and— JASON HARTMAN: The realtor. MOM: The realtor. And as he was there, someone was coming out of the door. And it happened to be the girlfriend. And I said, please let me speak with her. And so, she just took his phone, and took it in the house; the poor real estate guy lost his phone. He was ready to call the police to get the phone back. She carried out a ten-minute conversation with me about when they were going to pay rent, and all of the details. I said, please, now give that man back his phone. I talked to the realtor— JASON HARTMAN: This is hilarious. It's like a reality show, you know? MOM: I talked to the realtor, a few hours later I called him, and said, I wanted his address, I wanted to send him a check for his work in helping me out. And he refused the check, and he says, that's just my job, to give really good service to people. So I thought, that's a great guy. And I will certainly go back to him when I need to. JASON HARTMAN: Yeah. So, the realtors—you know, there's—what you've gotta realize, if you want to self-manage your properties, and if you want to be an extreme do-it-yourselfer like my mother—I mean, the vast majority of my clients, you know, and I'm talking vast, vast majority. Maybe 95% of our clients, use property managers. And you know, I do it both ways myself. Some of my properties I self-manage, and as I've said to you on many episodes for a long time now, I was happily, pleasantly surprised that I could do this from a long distance. I never thought that was achievable. And for our members, I taught a whole webinar on that topic, and I've talked about it on the podcast as well, on prior episodes, about long distance self-management of your properties. So, there are advantages and disadvantages to each. What you're hearing now is from an extreme do-it-yourselfer. So, good. Anything else on that? MOM: No, other than the fact that I have now done all of the eviction preparation work. Do-It-Yourself Eviction JASON HARTMAN: So, how do you handle a long distance eviction like that? Without a property manager? Tell us what you do. You go online, you find an eviction service, etcetera—tell us what that's about, and how it works, and how much it costs. MOM: Well, first off, I do file a three-day notice to pay rent or quit. Because I know all of the details. And I then hire a process server, which costs anywhere from $30 to $50 or $60 to get the thing served. Then you send the proof of service to the attorney. And you can go online and just Google eviction services. You always want to get a firm that specializes in evictions. Don't get a firm that does every other kind of legal work. Just evictions only. JASON HARTMAN: Yeah. So, there are lots of law firms out there. They are technically law firms, that offer eviction services, that are like an assembly line. They're a mill, and they just process evictions, and deal with tenant issues, like crazy. And one of the things I say when I talk about self-management, is that sometimes, your property managers will actually do this process themselves. You know, they will go, and they will post a three-day notice right on the door. Sometimes they nail it right to the door. And it's kind of embarrassing for the neighbors to see that. And they will actually do all of this, and they will handle the eviction, they will show up in court, they will take it all the way through getting your judgment against the tenant, which you can later collect on. Or, at least, try to collect. And I've talked a lot about that. A lot of those judgments are a lot more collectible than people think. In fact, when you were online today, I saw on your computer screen, mom, when you were online looking at eviction services, I saw that there was like a banner add there on that website that said, we want your old judgments. And so, a lot of these services, and a lot of other people out there, will actually buy these judgments from you. Now of course they're gonna buy them at a discount, so if you have a tenant who owes back rent, or has damaged the property, and you've got a judgment against them for, say, $2000—I've never sold off a judgment like this, but I would assume that these services will buy the judgment from you, and do all the collection themselves for maybe 50, 60 cents on the dollar, depending on how big it is, how collectible it is, etcetera, etcetera. But you can just sit there with a judgment and wait, and collect eventually too, and those judgments do accumulate interest. So, this can actually be kind of a good investment, oddly. And if that tenant ever tries to get an auto loan, or apply for credit somewhere, or someday buy a house, that prospective lender will usually say, hey, you gotta pay off this judgment before we're going to give you a loan. So, don't just assume that because the tenant is broke today, or they're a deadbeat today—fortunes change, and that won't stay the same forever. BILL CLINTON: Hi. This is Bill Clinton, and I want to invite you to hang out with my friend, Jason Hartman, in my hometown of Little Rock. Jason and his interns, you know I like interns, are having his famous Creating Wealth Seminar and Property Tour here! So drop everything, including Hillary, and go register at www.jasonhartman.com, right now. This event is coming up soon, but, as I like to say, it depends on what the meaning of the word ‘is' is. See ya there. JASON HARTMAN: So, what else happens in the eviction service? Tell us about that. Anything else? Did you hire the attorney on that one already? MOM: Yes, he sent me a couple of forms to fill out. And his price for an eviction in Riverside County is $670. JASON HARTMAN: Now that's pretty expensive, actually, huh? MOM: The prices went up, I think, about a year ago, or a few months ago. Because it was usually around $599, something like that. JASON HARTMAN: Boy, I've heard of people hiring them for a lot less than that! I've heard of people getting them for $2, $300. You know, I bet you—and now, those are old properties that are in the Socialist Republic of California. And I'll bet you, although I do not know, this is just a guess—that part of that has to do with the fact that California's such a tenant-friendly state, and it's just harder to evict people there. You know, one of the reasons we don't recommend it as a market. MOM: You know, I don't know. In some counties—Los Angeles County has a different price, and I think San Bernardino County has a slightly different price, and Riverside County has a slightly different price. So it depends on which county you're operating in. JASON HARTMAN: Have you ever done one—did you do one here in the south, where you've got your Southern United States properties? MOM: No, I've never done an eviction here. JASON HARTMAN: And your cash flow's so much better here too. You've gotta—see, my mom's strategy—look, folks. Of course your family's never gonna really listen to you too much. But now I can say, you should see her expression right now. Oh, here we go again, rolling the eyes. But, selling those properties, those properties that she's had for decades, okay? From the 70s, 80s, 90s, maybe you bought some in the 90s, I think you did, and selling them on 1031 exchanges, and exchanging those into other properties in more landlord-friendly places, and you know, with much, much better cash flow, that would be a great strategy for you. But speaking of that, let's talk about some of the markets we saw. Because we took a road trip after your surgery; they let you out of the hospital after two days in ICU, and one day, or one night, I should say, in the regular room in the hospital, where we watched fireworks from your room. And it was pretty good, actually. Cleveland had, I don't know. How many fireworks displays did we see there? Maybe 13, 15 fireworks displays? And a beautiful sunset. The Cleveland clinic is like, a hospital that's sort of on the swankiness level, almost, as the W Hotel, but with the service of a Ritz Carlton. I was just totally impressed. And I know you were too. And so, we watched fireworks there, and you checked out the next day. And then we drove around Cleveland. And number one, that was super impressive. But then we took a road trip, and we went to Cincinnati, we looked at properties, we went to Birmingham, we looked at properties, we went to Nashville, and then back home to Gulf Shores, Alabama, and then I took off to Dallas to go look at some discounted mortgages, discounted notes. And we're thinking of offering that to our investors. So, we'll talk about that on a future episode in more detail, but it's interesting. Talk a little bit about Cleveland, if you would, mom, and then let's talk about, maybe the other highlight would be Birmingham. I'll talk a little bit about the properties I looked at in Dallas, and then we'll kind of wrap up here. MOM: I was really, really, really impressed with the city of Cleveland. I had it in my mind that it was one of these old steel kind of rust belt cities. JASON HARTMAN: A blighted area. MOM: But wow was I impressed. Downtown—beautiful, beautiful displays of flowers everywhere. And darling restaurants, and shops. I just couldn't get over how lovely it looked! It was incredible! And then, the drive that we took along Lake Erie, where all of those big, beautiful houses were—I mean, some of them were just like castles. I was just blown away. JASON HARTMAN: Those are like the old money—probably old industrial money—homes, and they were very impressive. MOM: But there were also beautiful neighborhoods that, these weren't castles, but they were beautiful big homes, just one house after another, huge big lawns, everything was green, lots of trees, flowers, just a lovely sight to drive around. JASON HARTMAN: Amazingly, you know, some of these former rust belt cities are really finally getting it. They're not doing the idiotic thing, you know, the big government liberal thing, where they drive all the businesses out, like California has been for so many years. And they're getting it. I mean, there are a whole bunch of incentives to move your business to Cleveland. They'll give you free real estate, they'll give you free warehouses. And I mean, mom, one of the things that just, I couldn't believe it—you know, we went to the rock and roll hall of fame, we had lunch downtown, we had dinner downtown the night before, at that beautiful restaurant—what was that called? Blue Nose, or something? MOM: I think it was Blue Point, or Point Blue? JASON HARTMAN: Blue Point, yeah. MOM: And there was a horse with carriage that you could drive around the city with— JASON HARTMAN: There were a few of those, remember? And remember my dog Coco, who's in the back seat here— MOM: Oh, there was more than one of them, definitely. JASON HARTMAN: Remember how Coco freaked out thinking that horse is a big dog? She didn't know what to think of that. But, that was amazing. And, it was so clean, I didn't see a single homeless person anywhere. Now, maybe it's just too cold to have many homeless people. But it wasn't cold when we were there, of course, in the summer time, but it is other times of the year, and I mean, I was just amazed. I did not think it would be that nice. It certainly wasn't that nice last time I was there years ago. MOM: And there was one charming area called Little Italy, with all of the tables out on the sidewalks, and the tablecloths, and people eating out in the evening. It was just totally charming. I was—I liked it a whole bunch. Birmingham, Alabama, Real Estate JASON HARTMAN: Okay, let's switch gears, and let's talk about our next real big property stop. I mean, we did some others, but you know, these are the major highlights we'll give you. And that was Birmingham, Alabama. Now, we've been doing business in Birmingham for a while. We stayed at that beautiful Weston Hotel in Birmingham, and that whole new area of redevelopment there that was really, really nice. Shops, restaurants—it was gorgeous. It was really nice. Then we went out with our provider who we've been working with for a long time. We saw some of the homes that you, the listeners, our clients, have purchased and rented. And some that are in escrow, or under contract, I should say, and you know, you haven't closed on them yet. We saw some of those, and took some video. And the thing about Birmingham is that there are different management styles, different rehabbers or local market specialists that we work with have a different style of doing business. And you know, one of the things I say is that this is a very fragmented industry. Everybody works a little differently. That's what keeps the institutional investors largely out of our business. I know we've been talking about hedge funds, and private equity being in the real estate business. But, they don't like it very much, and they're not really staying in it. They're not here to stay. Because it's just too fragmented for them. It's not easy for them, like other institutional investments that offer lower returns. But when it's not your money, your return is not that critical of an issue, okay? And that's how they think. They just get paid to manage capital, right? So, Birmingham, the key thing there is, our local market specialist there, is what I call the minimalist manager. And what I mean by that is that these properties are really designed, and the rehab is done in such a way that the property is kind of bulletproof, if you will, where there's just not that much to break. And you know, I was thinking about all the properties I own, and have owned over the years, and the things that break, and the things that I get—you know, calls on, or you know, the property manager shoots me an email on, asking me, do I approve this expense to fix this or that. And I couldn't believe our local market specialist there, who's also a property manager. You know, mom, do you want to talk about some of this minimalist management? That you, by the way, loved it, okay. I was a little bit less enamored of it than you. But the more I think about it, the more I think, gosh, you really could have nearly expense-free properties with this style. What are your thoughts? MOM: I was impressed. Because if you don't have a garbage disposal to fix, or a dishwasher— JASON HARTMAN: You know, they said the actually prefer properties with no garages, and if it has a garage, they usually take the garage door out and just make it a room! Because it's less things to break, you know? There's never going to be a garage door to repair. There's never going to be a garage door opener to repair. Things like that. MOM: Yeah. And no microwave oven to replace. I just love the whole concept of this minimalist type of thing. It reminded me of houses that were built in Los Angeles in the 1940s. They didn't have all of these great, modern improvements, you know? All of these kitchen packages, the stove, the refrigerator, the microwave, the garbage disposal—that wasn't in existence in Birmingham. And those would be great houses. The rent might be lower, but you're not going to spend all of that money fixing them up and hiring plumbers to go out there. JASON HARTMAN: Well, the rent really is quite good. I mean, these are lower middle houses, okay? And so, the typical deal there that we looked at, where you'll buy the property for maybe $55-65,000—I mean, there are—this fluctuates, but this is what we kind of looked at that day. And it will rent for about 1.2% of the value. Maybe somewhere in that range. So, your $60,000 property will rent for $800 a month. And it's a minimalist deal, so again, the tenant doesn't have very high expectations. They get a single family detached home, and they get a yard, front and back, and they get three bedrooms, and one or two baths— MOM: And another nice aspect of those homes is, because they are the older homes, is that they typically have hardwood floors in. So, hardwood floors are much more desirable than carpets. And you don't have to keep replacing the carpets. JASON HARTMAN: Yeah. A lot less maintenance there. So, that's the minimalist style of management. And what it means—no garbage disposals, no dishwashers, no microwave, no garage, and obviously, no refrigerator, washer, and dryer. The tenant supplies their own. And the tenant can treat the dishwasher just like any other appliance. They don't, a lot of times, expect a washer, dryer, or a refrigerator. So, they bring those, and they can bring a dishwasher too. There are dishwashers that are mobile, that are, you know, not built in. MOM: When I said the rents are lower, they're not lower in—they're lower than the rents that you would get in California. But in relation to the prices that you pay for those houses, you are having positive cash flow! I mean great positive cash flow. And the point is that you get to keep most of it, because you don't have to spend it all in repairs. JASON HARTMAN: Yeah, good stuff. And we're gonna be touring, by the way, slated for mid, maybe late September, but our Little Rock Property Tour. By the time you hear this I'm pretty sure it'll be on the website at www.jasonhartman.com, so there's another great market that you can look at. And I just—we're kind of running out of time, so I think I'm going to skip telling you about our Dallas tour. I mean, not ours as a company, but my Dallas tour. And I'm not gonna tell you about discounted notes, and those kinds of opportunities, in this show, because we're already at about 30 minutes here. But I do want to tell you, go to www.jasonhartman.com, join us for our Little Rock Creating Wealth Seminar and Property Tour, and that will be in mid-late September, more details to follow very soon, but you can register and get the early bird pricing, at www.jasonhartman.com, in the events section. [MUSIC] ANNOUNCER (FEMALE): I've never really thought of Jason as subversive, but I just found that's what Wall Street considers him to be! ANNOUNCER (MALE): Really? How is that possible at all? ANNOUNCER (FEMALE): Simple. Wall Street believes that real estate investors are dangerous to their schemes, because the dirty truth about income property is that it actually works in real life. ANNOUNCER (MALE): I know! I mean, how many people do you know, not including insiders, who created wealth with stocks, bonds, and mutual funds? Those options are for people who only want to pretend they're getting ahead. ANNOUNCER (FEMALE): Stocks, and other non-direct traded assets, are losing game for most people. The typical scenario is: you make a little, you lose a little, and spin your wheels for decades. ANNOUNCER (MALE): That's because the corporate crooks running the stock and bond investing game will always see to it that they win! Which means, unless you're one of them, you will not win. ANNOUNCER (FEMALE): And, unluckily for Wall Street, Jason has a unique ability to make the everyday person understand investing the way it should be. He shows them a world where anything less than a 26% annual return is disappointing. ANNOUNCER (MALE): Yep, and that's why Jason offers a one book set on creating wealth that comes with 20 digital download audios. He shows us how we can be excited about these scary times, and exploit the incredible opportunities this present economy has afforded us. ANNOUNCER (FEMALE): We can pick local markets, untouched by the economic downturn, exploit packaged commodities investing, and achieve exceptional returns safely and securely. ANNOUNCER (MALE): I like how he teaches you to protect the equity in your home before it disappears, and how to outsource your debt obligations to the government. ANNOUNCER (FEMALE): And this set of advanced strategies for wealth creation is being offered for only $197. ANNOUNCER (MALE): To get your creating wealth encyclopedia, book one, complete with over 20 hours of audio, go to www.jasonhartman.com/store. ANNOUNCER (FEMALE): If you want to be able to sit back and collect checks every month, just like a banker, Jason's creating wealth encyclopedia series is for you. [MUSIC] ANNOUNCER: This show is produced by the Hartman Media Company. All rights reserved. For distribution or publication rights and media interviews, please visit www.HartmanMedia.com, or email media@hartmanmedia.com. Nothing on this show should be considered specific personal or professional advice. Please consult an appropriate tax, legal, real estate, or business professional for any individualized advice. Opinions of guests are their own, and the host is acting on behalf of Platinum Properties Investor Network, Inc. exclusively.
Introduction: John Lawrence Allen is a securities litigation attorney helping investors recover funds lost through investment fraud or incompetence. He's a former Los Angeles Deputy District Attorney and author of the new book, “Make Wall Street Pay You Back.” Allen talks about the dirty tricks Wall Street plays and how average people can protect themselves from Wall Street. Allen also gives some tips for investors before they invest a large sum of money with an advisor or hedge fund. He also shares how financial advisors can mitigate their risk of fraud. Key Takeaways & Time Stamps: (2:20) John Lawrence Allen: background and history of latest book (3:06) How Wall Street and the investment landscape have changed over the last 20 years (4:06) On the arbitration process (7:34) On the laws not being in favor of the consumer (11:34) A brief message from Bill Clinton (12:13) Causes of action: fraud, incompetence, etc. (17:00) The extraordinarily high commissions on life insurance sales (19:11) How does the investor know what fees are being assessed by financial advisors? (22:08) The length of the FINRA arbitration process (22:55) On “simplified arbitration” for small claims (24:58) Discussion of other types of fraud, beyond incompetence and excessive commission (30:20) Discussion of a managed future deal Jason was pitched on (33:30) Some tips on buying gold: always invest in bullion, never numismatic coins (38:12) Who claims are usually made against (39:42) Jon Corzine, MF Global, & the Insider's Game (44:19) Bad monetary policy forces people to take inappropriate risks (45:03) Closing statements Links: www.MakeWallStreetPayYouBack.com. www.Amazon.com to purchase the book: Make Wall Street Pay You Back Find out more about John Lawrence Allen at www.myinvestorfraud.com. Bio: Former Los Angeles Deputy District Attorney John Lawrence Allen represents investors nationwide in securities arbitration. Mr. Allen spent seven years working for two major Wall Street firms and was chief investment officer for two hedge funds. Mr. Allen pens a blog on impactful subjects that affect all of us and is a respected legal expert who provides insightful commentary on national TV, radio and print. Audio Transcription: ANNOUNCER: Welcome to Creating Wealth with Jason Hartman! During this program Jason is going to tell you some really exciting things that you probably haven't thought of before, and a new slant on investing: fresh new approaches to America's best investment that will enable you to create more wealth and happiness than you ever thought possible. Jason is a genuine, self-made multi-millionaire who not only talks the talk, but walks the walk. He's been a successful investor for 20 years and currently owns properties in 11 states and 17 cities. This program will help you follow in Jason's footsteps on the road to financial freedom. You really can do it! And now, here's your host, Jason Hartman, with the complete solution for real estate investors. JASON HARTMAN: Welcome to the Creating Wealth Show. This is your host, Jason Hartman, and thank you so much for joining me today. We'll be back with today's guest or segment, in just a moment. [MUSIC] JASON HARTMAN: It's my pleasure to welcome John Lawrence Allen to the show! He is a securities litigation attorney, helping investors recover funds lost through investment fraud or incompetence. He's a former Los Angeles Deputy District Attorney, and the author of a new book, entitled, Make Wall Street Pay You Back. And of course you know over the years I've said with some degree of sarcasm, that Wall Street is the modern version of organized crime, and my Commandment #3 for successful investing is, maintain control, because when you don't maintain control, you leave yourself susceptible to three major problems. Number one, and we're gonna address that during the interview with John today, you might be investing with a crook. Number two, you might be investing with an idiot. And so we'll address those two. And number three, even if they're honest, even if they're competent, they take a huge management fee off the top for managing the deal. So, we'll kind of dive into this. John, welcome. How are you? JOHN LAWRENCE ALLEN: I'm good. How are you today? JASON HARTMAN: Good, good. Well, it's great to have you. And just to give our listeners a sense of geography, where are you located? JOHN LAWRENCE ALLEN: My office is in White Plains, New York. I used to have an office in California and midtown Manhattan, and I've now moved out to the Connecticut countryside to work in White Plains. John Lawrence Allen: background and history of latest book JASON HARTMAN: Fantastic. Well, tell us about your background, and how you came to write the book. JOHN LAWRENCE ALLEN: Well, I wrote my first book, Investor Beware, 20 years ago. And that was—actually, more than 20 years, I guess it's been now. Almost 25 years ago. And that was the result of having been in the industry. I spent 7 years on Wall Street, and I invented an arbitraged [unintelligible] program. That's how I went into Wall Street. And I got very, very dissatisfied with the [unintelligible], and the outright unethical activity I saw around me. And it got so bad that I quit, and I wrote my first book, Investor Beware, to help people protect themselves from the way Wall Street operates. But over the last 20 years, the entire investment landscape has radically, radically changed. And the entire way brokers do business has changed. And if investors aren't aware of these changes, they may very well end up becoming victims of the Wall Street community. How Wall Street and the investment landscape have changed over the last 20 years JASON HARTMAN: You know, when you say those changes, I don't know what you're referring to, so I'll have you tell me. but is one of them—one way that I think large corporations really oppress people, is through the commercial arbitration act. And I know so many years ago in the 90s, when there was a lot of securities fraud in the news—of course, that seems to be an ongoing issue, of course. And, you know, a lot of people have lost money in the stock market. They made some new rules—I don't know, you know, exactly which agency that came out of. Maybe it was the FCC, or FINRA, I didn't mean to say FCC, did I say that? The SEC, the Scoundrels Encouragement Commission, as it's been called. But it is—is that arbitration? Because arbitration, really I think takes away people's rights quite a bit. On the arbitration process JOHN LAWRENCE ALLEN: Well, that's an interesting—there's two sides to that coin. Yes, they take away people's rights. And people don't know it, but if you have a problem with a broker dealer—that's, you know, any licensed firm that buys and sells securities for you—if you have a problem with the representative who works at a broker dealer, when you sign your contract with them, you waive your right to a court trial or jury trial. That means, you don't get to be in front of a group of your peers, you don't get to have any of the help that you would get in a court room, or in a civil or jury trial. That's the negative side. But there's a positive side to it. The positive side is, you're gonna go into arbitration, which is significantly less expensive, significantly less time-consuming, and far swifter justice than you could ever get in a court. Let's say you win a court case, and what's gonna happen? Well, the arbitration—not the arbitration. Securities firm is going to appeal that matter, and you're gonna get stuck in court for another couple of years. On the other hand, if you go to FINRA—Financial Industry Regulatory Authority arbitration—you're gonna be in front in a case of $100,000 or more, three arbitration judges, who are gonna rule very quickly, and you're gonna have a result very quickly. And if you win, they have to pay within 30 days. You don't have any of the problems of collecting, or appeal, or the lengthy process that's involved in the court proceeding. And there's one more positive, I find, in arbitration. That is, if you get into a complex securities case, there are complex issues and facts that the average juror really can't grasp that well. But these arbitrators are usually business people, and they have a business background, and they understand wrongdoing when they see it, and they're not afraid to make an award. The one thing that is difficult is to try to get punitive damages. That's very difficult arbitration. I've attained it more than once, I've gotten it, but it's a difficult road to go, to try to get punitive damages. And lastly, you don't have to get bogged down in a motion practice where a wealthy brokerage company with an unlimited pocket can paper you to death with motions and motions to compel and sanctions and hearings and depositions and request remissions and all the discovery stuff that goes on. None of that's allowed in arbitration. JASON HARTMAN: I mean, I've been in arbitrations. They have depositions though. JOHN LAWRENCE ALLEN: Not in federal arbitration. For securities cases. Yes, in civil arbitration, but if you go into a FINRA arbitration, there are no depositions, there are no request remissions, there are no interrogatories. You can do a document request, but it's very limited, which means that you're gonna save a great amount of time and a great amount of expense, and a great amount of heartache. So, all in all, oddly enough I actually—when I started, I didn't like, or I perceived not to like, the arbitration process. But now that I've done it for so many years, I think that it's a good methodology to get swift justice. JASON HARTMAN: Okay. Well, I don't want to belabor that one, because it'll take away from sort of the crux of our discussion, but it's good to hear your point of view on that. So, the thing you were saying, in terms of the laws not being in favor of the consumer, in this case the investor, is no jury trial, and what was the other one? On the laws not being in favor of the consumer JOHN LAWRENCE ALLEN: No court trial. No judge— JASON HARTMAN: Okay, no court trial at all. So, arbitration. But, were there any other things you wanted to mention there, before I got you on this tangent of arbitration? JOHN LAWRENCE ALLEN: Well, I just—I think that the cost effectiveness is so overwhelmingly in the—you know what it does? It puts you on an even footing with someone who has an unlimited budget, which you can't do in litigation unless you're willing to spend the money to ante up. But in arbitration, you're on an equal footing with your opponent. And if you have a competent, skilled, highly qualified and knowledgeable attorney who knows the ins and outs of FINRA arbitration, you've got a long way towards getting your money back. JASON HARTMAN: So, that may be different—and again, I don't want to belabor this arbitration point too much, because there's other issues, of course. But, it sounds like it's better, with a FINRA situation, for people that have been defrauded, just lost money because of incompetence on Wall Street. But in a typical arbitration, those arbitrators—I think, I'm pretty sure, they really lean toward the person who put the arbitration clause into the contract, because they view them as repeat customers, and we'll call it part of the vast Wall—the vast arbitration conspiracy. It blows my mind that AAA, the American Arbitration Association, is actually a nonprofit organization. The fees are enormous. And we all pay taxes to have a public court system. And listen, I'm no fan of prolonged litigation, or litigation at all, but gosh, why do you have to pay for a private court, which in the typical arbitration, probably not FINRA, with what you explained, acts, in my opinion, as a bit of a kangaroo court—especially the fact that these things are confidential. And you get these real estate developers that develop these condo properties and so forth, and you know, they all put arbitration clauses in their contracts. And you can't do a litigation search on them before you, say, buy a property, to see if they're a bad apple, if they've been sued by hundreds of investors! It's all hidden from public view. And that just makes me think of a Third World, Banana Republic country where they've got these kangaroo courts, and you know, our whole system is based on transparency. At least that was the original idea of it. So, that's my bone to pick with arbitration. JOHN LAWRENCE ALLEN: Well, you raise a good point. And I would tend to agree with you. Up until a couple years ago, arbitration had two panel members that were public, and one who actually came from the industry, and it was in many cases biased in favor of the arbitration people, meaning the broker dealers. And I think the statistics, not from me personally, but the statistics generally bear out your concerns. People don't do all that well in arbitration. They win about half their cases, and of the cases they win, they win about half the money they got back. So, I don't put that as good odds. That's not been my experience, but I am very selective in the cases I take, and I put in a great deal of time to win these cases. I understand that you're not gonna get money from three business people unless you can find a way to emotionally connect your client with them. if you can't find a way for them to care about your client, they're not gonna give you anything back. But if you can find a way to develop the cast to find an emotional connection—something that touches them, they're gonna be far more willing to knock the arbitration—when I say, to go after the broker dealer for fraud. JASON HARTMAN: Let me take a brief pause; we'll be back in just a minute. A brief message from Bill Clinton BILL CLINTON: Hi. This is Bill Clinton, and I want to invite you to hang out with my friend, Jason Hartman, in my hometown of Little Rock. Jason and his interns, you know I like interns, are having his famous Creating Wealth Seminar and Property Tour here! So drop everything, including Hillary, and go register at www.jasonhartman.com, right now. This event is coming up soon, but, as I like to say, it depends on what the meaning of the word ‘is' is. See ya there. [MUSIC] Causes of action: fraud, incompetence, etc. JASON HARTMAN: Let's talk about what are some of the causes of action. I mean, of course fraud is one of them. But you also mentioned incompetence, and when someone has a securities claim, whom is the claim directed at? You know, you've got the advisor who works at Merrill Lynch, which in my opinion, or whatever firm, I'm just saying Merrill Lynch because they're big. But they can work at any firm; Ameriprise, Merrill Lynch, whatever, okay, and I tend to find those advisors are usually just slick salespeople who wear nice suits, okay? Nothing more than salespeople. They have cursory knowledge. Very little real depth of knowledge, usually. Of course I'm making a generalization here, and I apologize to those smart, great, ethical good brokers out there, because there are some. But you've got the broker, you've got the investment banker, you've got the firm. Who are you really—you've got the company. There are so many layers to this. JOHN LAWRENCE ALLEN: Well, let's talk about that for a second. People don't know that you can hold a brokerage firm and its registered representative—that's the stock broker who provides you with a recommendation—for giving bad advice. People think, well, that doesn't sound right! If he gave me bad advice? I mean, if I get advice, and the stock doesn't do what he thought, how can he be responsible? And the corollary, or the answer to that, is this. Under the FINRA guidelines, and the Securities and Exchange Commission guidelines, brokers are required to know your risk tolerance, time horizon, financial goals, and anything that can affect your capacity to invest. That means if you're employed, unemployed, medical problems, but mostly, what they have to do is they have to match the correct product with your goals, objectives, risk tolerance, and time horizon, so that they make a recommendation that's suitable for you. So, if you're 35, and have a good job, and you want to take some risk with having 70, 60, 75% of your money in the stock market, probably not bad. The opposite of that is, what if you're 65 or 70, and you're retired, and living on your retirement assets, it would not be appropriate for a broker to recommend that you buy a highly speculative stock, or that you have 70 or 80% of your investments in equities, and stocks! JASON HARTMAN: They seem like they do a pretty—I mean, I'm sure there are brokers out there that do that kind of stuff, but it seems like they do a pretty good job of making all the appropriate disclaimers, and you gotta sign a mountain of paperwork that of course is all written in their favor, and has a zillion disclaimers, and a lot of legalese—I mean, don't they pretty much cover themselves on that type of stuff usually? JOHN LAWRENCE ALLEN: The paperwork covers them perfectly fine. But that doesn't relieve them from their obligation. A broker that makes a recommendation to a customer has a fiduciary duty to that customer to put the customer ahead of the broker. So, let's say I have a client who wants to make an investment of a couple hundred thousand dollars, and I want to put them in what quote is a suitable investment, based on what they've told me about themselves. Unless they put it in a suitable investment, I can make, let's say, $200,000 investment, maybe I can make $100, $150 in fees. However, if I put them in something that the brokerage company is promoting, or pays a double commission, or is highly speculative, I might be able to charge them significantly more. Let's say $1000. So, if I can make $1000 on a improper or unsuitable investment, and $100 or $200 on one that's suitable, that puts in kind of a trap for the broker to say to themselves well you know, I'm really gonna forgo that extra 800 bucks I'm gonna make on this transaction and do what's right for my client. How many people have the ethical and moral heart to do that? The extraordinarily high commissions on life insurance sales JASON HARTMAN: Not a lot of people, certainly on Wall Street. Not a lot. And you know, when you say that, it reminds me of two investments that are really just laden with heavy commissions, from what I understand. One of them is oil and gas, and another is life insurance. The fact that life insurance is even kind of promoted as an investment bugs me in some ways, although the needle might be moving a little bit, for me, on that. But still, I just think it's insurance. You know? But those—I mean, some of these things have extraordinarily high commissions. I mean, I'll give you an example of one. One time a life insurance guy came into my office, and he wanted to market his life insurance products as an investment to my investors in my real estate firm. And he slapped down literally a copy of some checks that he earned on some policies that he sold. And one of them was like a $7 million life insurance policy. And I'm not gonna get this exactly right, because I don't remember, but the check was for like $250,000. I mean, it was insane, how—he says, look, I could split this with you. I'm like, well don't I have to have a license or something? And he says, well, there's a way around that. We'll reclassify the fee. And obviously I didn't do any deal with him, but I mean, some of these commissions on these things are just extraordinary. On these oil and gas deals? I hear that some of them are like half of the investment amount! You know, if they get an investor to put $100,000 into some oil and gas deal, the salesmen will make 50 grand! Whoa! That's crazy! JOHN LAWRENCE ALLEN: Yep. That's true. And in fact, if you want to go back a little bit further in time, there was a period in the late 80s and middle 90s where Prudential [unintelligible], which, you know, the rock solid, sold 400,000 of its customers $8 billion in phony partnership deals. And those deals, they were making 30, 35, and 40% off the top before the customer saw a single dime. JASON HARTMAN: Unbelievable. That's just—that's just crazy. So, is—so, okay. So, the broker, or the investment advisor, with a registered rep—I don't know exactly what to call them—but, they steer the investor into something that's not as good for them, that obviously pays them a higher fee. Right? So, that's one form of—that's one actionable thing. Now, how is the investor ever going to find that out though? How does the investor know what the menu of fees is for the things that that advisor has to steer them into, available to them? How does the investor know what fees are being assessed by financial advisors? JOHN LAWRENCE ALLEN: Well, that's a very tough question. And that's a very good question. And the reason is because on a lot of these products that they're selling a product, the commission's in the product, and the customer will never know. So, on that $200,000 example, if the broker makes $5000, you know, a 2½% fee, and that's in the cost of the $200,000, that means that really 195 of your money actually ever went into the investment. And there's no way you can know, unless you read the prospectus, or you ask the broker. They're certainly not gonna volunteer and tell you, oh yeah I'm gonna make 5 grand on this break. And also, that also happens on principle transactions. If you ever buy a stock or a bond, most bonds are sold on principle transactions. JASON HARTMAN: What is a principle transaction? What does that mean? JOHN LAWRENCE ALLEN: A principle transaction is where there's no commission charge. The fee is in the price of the bond. JASON HARTMAN: Alright. JOHN LAWRENCE ALLEN: So, as an example, if I call up my broker and say, you know, I want to get a 10-year bond, and let's say you can get a 10-year bond for 2.3% return per year over the 10 years. So, you buy the bond with this 2.3%. You don't know what the brokerage firm picked that up for. Let's say they picked it up for 2%, and they charge you 2.3. That difference in that spread is an enormous markup. It could be many thousands of dollars. So you just don't know in a principle transaction, and that's another way brokerage companies can—in fact, I've gotta case right now, I have a lady who had a very, very, very substantial portfolio, many millions of dollars, and she was charged over $3 million in markups and fees on bond transactions, and she never knew it, over the course of a 6-year period. JASON HARTMAN: Wow. Wow. So, $3 million in fees and markups on what— JOHN LAWRENCE ALLEN: On municipal bond transactions. The safest most conservative of all transactions. JASON HARTMAN: Right. Yeah, right. And I'll tell you something. If you ask me, a lot more municipalities are gonna be filing bankruptcy in the future, because there are so many of them underwater. Of course we've seen that with Detroit, Vallejo, California, some others. But very interesting. So, $3 million in fees—that is unbelievable! What was the principle investment though? I've gotta have some comparison. JOHN LAWRENCE ALLEN: She had $30 million in municipal bonds. JASON HARTMAN: So, 10%. JOHN LAWRENCE ALLEN: In a laddered portfolio that never should have been touched, that had never been—not that—there should not have been any transactions, and in 6 years they traded $120 million with the bonds in her portfolio. JASON HARTMAN: Unbelievable. That's just insane. So, she's in process, right? Did you recover for her yet? JOHN LAWRENCE ALLEN: We're in the arbitration process now. JASON HARTMAN: How long does that take, when it's a FINRA arbitration? What's the length of that process? The length of the FINRA arbitration process JOHN LAWRENCE ALLEN: Somewhere between 11 and 14 months, on average. JASON HARTMAN: Okay, alright. And, what is the amount of money—I mean, obviously that's a large client with some big money you're talking about, in terms of the investment size, and the investment losses. But, how much does someone need to lose in order to make going to a FINRA arbitration worth it? JOHN LAWRENCE ALLEN: Well, that's a good question. I would answer that in twofold. First of all, anybody that wants to seek help should only hire an attorney that would be willing to work on a contingent fee so they don't end up spending a lot of money trying to get back their losses. That's item one. Two, there are different levels of arbitration. FINRA, within the last year and a half, has established a new type of arbitration called small claims. They call it simplified arbitration. On “simplified arbitration” for small claims JASON HARTMAN: Oh, that's great. Like small claims court kind of idea. JOHN LAWRENCE ALLEN: Kind of, but a little different. And that would—for FINRA, small claim is any loss below $50,000. And if you have a loss below $50,000, you don't—and you go into this simplified arbitration, you don't even have to appear at a hearing. You submit the entire claim, on paperwork; the respondents, the broker dealer, file an answer, and one arbitrator makes a ruling without you ever having to appear. So it saves you testimony, litigation cost, travel expense, hearing fees, expert testimony. It's all done in the pleas. Now, you don't have to do it that way. If the case is $50,000 or smaller, you have a one party, one arbitration chairperson, that's it. You don't have a panel of three. You have a panel of three above $100,000. So really, I would say anybody that loses $10,000 or more, even $5000 or more, it's certainly worth it to pursue it. I don't think you'd probably get many attorneys to handle a $5000 case. But I've developed a methodology to help people with cases between $10 and $50,000, which is on my website, and I take them into the small claims arbitration process, and the whole thing can be done for very, very little money, and the best part is, unlike regular arbitration, small claims are usually resolved in 7 months or less. JASON HARTMAN: Excellent. So give out your website if you would. That's a great resource, thank you. JOHN LAWRENCE ALLEN: Well, my website is the same as my book; the book is Make Wall Street Pay You Back, and the website iswww.MakeWallStreetPayYouBack.com. JASON HARTMAN: www.MakeWallStreetPayYouBack.com. And you've got the small claims information on there, which is fantastic. But then also, for larger losses, they can hire you, or another attorney? JOHN LAWRENCE ALLEN: Correct. Discussion of other types of fraud, beyond incompetence and excessive commission JASON HARTMAN: Okay, good. So, talk to us more about some of the other types of fraud out there. there's incompetence, there's, I guess I'll call it steering to the product that pays the highest commission. What else is there? JOHN LAWRENCE ALLEN: Well, beyond the suitability issues, which are very numerous, and that expands a lot of things that brokers might do. They might put you in—there's an example, as I said before, if you're 70 years of age, you probably shouldn't be in a 75% stock portfolio. On the other hand, if you're 75 and they put you on 100% in one investment, and over-concentrate you, that's not correct, that's not suitable either. So, it really doesn't matter what age you are. if a brokerage company takes all your money and puts it in one investment, that's clearly unsuitable, because if that investment goes down—even Apple, as an example. People do fabulous in Apple, but Apple also had, about six months ago, a 300-point drawdown. And if you had all your money in Apple, you're hurting! So, that's another thing they do. Also churning. Churning is where a broker makes excessive buys and sells in your account, without an interest in making you profits, the broker's interest is in getting as many commissions as they can from your account. And what's interesting is in a churning case, you could actually—I've had cases in churning where the client never knew the account was churned, because they didn't lose any money! The account was churned for a couple years, they ended up—you know, the stock market was up 30% over a two-year period and their account was flat. They couldn't understand why. And when I dived into it, I found out, well, it was flat because $200,000 in commissions were paid over that period, and if you hadn't had the $200,000 in commissions, you would have been up 200 grand, and you would have been up pretty much where the stock market was. So, if a broker exercises control over the account, and buys and sells excessively to generate commissions, they churn your account, and that's actionable. JASON HARTMAN: So, in other words, you don't have to have actually lost money in the aggregate. You could still have an investment. Your portfolio could still be up. But just because of the malfeasance of the brokerage firm, or the individual broker, you could have lost money through churning—now, the churning thing, is that as big as a deal anymore? Because it seems like the industry has moved to a model of managed money, where all they're really doing is, you give them $100,000, and they're charging you, you know, 2% a year, or whatever the number is. And you're not really paying for trades. But, one of the scams is, a lot of times, you're paying in multiple layers! So, you'll give the guy sitting at Merrill Lynch your $100,000, and he'll say, well, I'm gonna charge you 2% a year, or whatever the number is, and so, he doesn't make money on churning per se, but then what he does is he goes and he puts your money into a bunch of other funds like mutual funds where they're making money inside that fund too, because of all these management fees. I mean, that's just, wow. JOHN LAWRENCE ALLEN: Well, you're absolutely correct. And that is—and that's one of the things I had to cite in the book. The methodology on Wall Street has shifted from a commission-driven business to an asset-gathering business. So, the churning claims are down dramatically. They're not out. And the reason they're not out is because there are products called managed futures. And most of these managed future products really don't exist to have the customer make money. They exist for the broker dealer to reap huge commissions from buying and selling at a high velocity commodities. And, what's interesting about these managed futures, is most of them have a program in which, let's say you give somebody 50 grand. And let's say they have a hot hand and their managed commodity accounts have doubled, and you go up from 50 to 100,000. The prudent thing to do would be to pull your 50 out and play with their money. But that's not what they do. What they do is, if you go to $100,000, they merely double the amount of contracts they're trading, so they can generate double the commissions. So, if you had a $50,000 account, and you were doing, let's say, five contracts in a trade, and you now have $100,000 account, they double that, they go to 10 contracts. Let's say you make an incredible profit, you go to $200,000. Your 50 has grown to 200. Well, you're now gonna go from 5 to 20 contracts. Which means that even the smallest move, after those enormous profits, will wipe out all your gains in a very short time. Classic example of that is long term capital, which made 30, 35, 40% a year for three years, and then in six weeks, wiped out not only all of the gains, but the $4.5 billion that was still there. Totally wiped it out when the commodity markets went the wrong way. Discussion of a managed future deal Jason was pitched on JASON HARTMAN: Wow, unbelievable. Hey, can I run something by you that I was pitched on? I actually had the guy on one of my shows, and it sounded pretty good…it's a managed future deal, and I just wanted to see what you thought of it. JOHN LAWRENCE ALLEN: Sure. JASON HARTMAN: I didn't do this investment; at least not yet. But, the guy was pretty convincing, I have to tell you. And so, he works in Chicago, and you know, is on the floor of the exchange there, and the big pitch is that Japan, which most of us know is massively in debt, the whole country is just in a mess. I mean, the US is too, but the US has the reserve currency, and you know, some different circumstances, obviously. And the pitch is that Japan will default on their debt, and what you should do is over a 5-year plan, with a $30,000 minimum investment, let me buy options on this debt, that it'll default. Let me short the Japanese debt. It's just saying, it's gonna default at some point. And there will be what's called option decay. Now, granted, I don't have a big understanding of this. I'm just a consumer. But there's something called option decay, and as the option decays, what he's basically doing is over the course of five years, using $500,000 per month of your $30,000. I think—I don't know the math on that. Yeah, 60 months. 500 a month. To pay for option decay. But at some point in that 5 years, there's gonna be a default, and you're gonna win, you're gonna make money. That's the prediction. Of course it's a prediction. What do you think of that? JOHN LAWRENCE ALLEN: Well, that's a long-term bet, and I guess the thing I'd be most concerned about would be, do they have the—I presume this is not an exchange-traded fund? If it doesn't trade at any known stock exchange or commodity exchange, you have to worry about the counterparty risk of the person, should they do what they claim it's gonna do, are they gonna be able to pay you? And a lot of these counterparty risk cases that have come up during the 08, 09 crisis when a lot of off-market contracts were traded, and they couldn't make good when the unlikely event occurred, like AIG, which was betting on collateralized debt obligations, they said, oh, no country's ever gonna go into bankruptcy. No, we're not really gonna have to worry about that. And lo and behold, Greece goes into bankruptcy, and AIG almost went under! Took us close to a trillion dollars to bail out AIG, which I think was a big mistake. But there was a counterparty who couldn't pay! JASON HARTMAN: Maybe the concept is a winner. Maybe it actually works. But then the counterparty just defaults, and they can't pay you. JOHN LAWRENCE ALLEN: Yeah, that's why I try to stick with anything that's exchange listed. So then at least I know they're going through a well known New York stock exchange, the COMEX, the NASDAQ, and there's some third party who's trying to make sure that they're gonna honor their margin requirements. Some tips on buying gold: always invest in bullion, never numismatic coins JASON HARTMAN: Good. Okay, good point, good point. Okay, what else should people know? Do you want to talk about any other types of investments? I mean, maybe you want to mention just quickly maybe gold? I know that that's not a huge market, but we touched on oil and gas. If, you know, you want to mention any other alternatives. JOHN LAWRENCE ALLEN: Well, I think for gold, my suggestion would be, anybody who wants to invest in gold, I don't have a problem with them investing in gold. I do have a problem in how they do it. I don't think anybody who wants to own gold should ever use leverage, options, or margin. They should only buy it for cash. They should take delivery, they shouldn't allow any third party to store their gold, and they should only buy gold from a reputable dealer who's been in business over 10 years, and then finally, only gold bullion, not numismatic coins which are supposed to have great asset value. And when I say bullion, I mean a Canadian maple leaf, an American gold eagle, you know, a South African Kruger rand, an Austrian krone, some well known gold bullion that's difficult to make in a, what I would call a forged or dishonest way. JASON HARTMAN: Right, right. A lot—the scams and the numismatic market are rampant, and every gold dealer, when you call them up, you know, a lot of times they're advertising on the radio, and they're promoting the concept of gold or silver or platinum or palladium, and they're talking about bullion. But when you call them, they try to up sell you to numismatic coins, because they're just much higher margins. JOHN LAWRENCE ALLEN: Tremendous, tremendous margins. You're talking sometimes 30, 40% margin on a numismatic coin. JASON HARTMAN: Right. But you know, that's not a security necessarily. I mean, are you talking about—see, I think the only way someone should invest in gold, or precious metals, is in the way where you actually take possession of it. JOHN LAWRENCE ALLEN: I agree. JASON HARTMAN: You're talking about inside of a fund, right? I mean, you're not talking about—I mean, there's—there are frauds where people actually take possession, and they find out the metal is fake. But I don't think that's super common, probably. JOHN LAWRENCE ALLEN: Those are very, very rare. And those are usually not government-sponsored products like American eagles or maple leaves from Canada. And, they're usually sold by disreputable dealers. But if you buy gold from a reputable dealer and have it shipped to your home, put in a safety deposit box, or bury it somewhere, that's the safe way. You don't want to have them tell you, oh, we'll store it for you. No, you want your gold, if you're gonna buy gold. JASON HARTMAN: I agree with you. The point of that types of investing is to be in possession of it. absolutely. And I just can't believe the people that go for these deals where they say, oh, they're gonna store them in a vault in Switzerland. Yeah, right. JOHN LAWRENCE ALLEN: And another thing now—another section of my book, Make Wall Street Pay You Back, is, as you said very early on, we're no longer a commission-driven business; we're a management business, where they grab their assets and send them out to management. That adds a layer of protection to the broker dealer and the registered representative, the stockbroker. However, that doesn't stop them from still having to make a suitable recommendation to this manager. So, when you go to a broker dealer and you give them your assets, and they agree to manage them, and they're not gonna charge you a commission, they're gonna charge you a percentage of the assets you have under management, you need to be sure that whatever manager they hire, that that manager is—and the manager style—is in keeping with your goals, objectives, risk tolerance, and time horizon. You don't want to go into an all equity small cap microcap fund, if you're trying to invest in what is supposed to be on the stock investing side, a more conservative portfolio. And also, you want to be sure that the style of that manager doesn't involve, unless you're willing to take that risk—you know, I'm not saying risk is bad. You just need to know about it, make an informed consent about it, and be willing to accept it. But you need to be sure that that style of that manager is in keeping with your risk assessment. Because, if you don't want to take a lot of risk, then you can't have options, derivatives, or futures, or leverage, employed by that manager. So you need to know the style, and the type of investments, and where they're gonna make those investments. Who claims are usually made against JASON HARTMAN: Toward the beginning of the show I talked to you about all the different layers of this onion, and how, who are you really—who is your claim against? We've talked about registered reps, brokerage firms. What about the other people in the food chain? And then, all the way up to the actual company, whose stock you own. In the board of directors, and the CEO, and the CFO, and the CTO—all of these guys are just skimming off the top. I mean, the Dennis Kozlowskis of the world, and all the rest of them. I mean, there's a lot of fraud going on at that level too, where, you know, the brokerage firm could be okay, the rep could be okay, but the actual company whose stock you own, do you go after them too? JOHN LAWRENCE ALLEN: Well, I try to make a rule not to go after anybody who has a questionable pocketbook to recover from. Generally— JASON HARTMAN: Oh, right. JOHN LAWRENCE ALLEN: Generally, when there is a corporate crime, or a corporate fraud, most of the time, not always, most of the time, there aren't assets sufficient to recover for the shareholders. JASON HARTMAN: Because they've sucked it all out of the company, and the company's basically an empty shell. JOHN LAWRENCE ALLEN: Exactly. Madoff, or Enron, or Delphi, you know, if we were to go back a few years to all of the security problems going on. But interestingly enough, if you do it at a grand enough scale, you get to walk away scot-free and you don't even go to prison. JASON HARTMAN: It's unbelievable. Yeah. Jon Corzine, MF Global, & the Insider's Game JOHN LAWRENCE ALLEN: A perfect example is Corzine, who was the governor of New Jersey— JASON HARTMAN: MF Global. JOHN LAWRENCE ALLEN: And Jon Corzine. And he was a huge donator to the Democratic Party, and a big supporter of Obama, and he took over a company, MF Global. And they were just a plain bread and butter vanilla commodity broker. They bought and sold commodities, they made, you know, a few pennies off of the buying and selling of these commodities. Well, he didn't think that was enough money. So he went and made a multi-billion dollar—I think 3.6, to be exact—billion dollar bet on the debt of other countries and companies. And that bet went awry. Very badly awry. And Corzine went in, and he claims he did not do this. He claims he didn't know. But under his supervision as the chairman of the company, they invaded the assets of their own clients, and stole $1.3 billion of assets from their clients to cover their bad bet. JASON HARTMAN: And that's Jon Corzine, and $1.3 billion, that's billion with a ‘b.' Not million—billion, okay? Huge. JOHN LAWRENCE ALLEN: Correct. Took it out of their clients' accounts. They got caught, they had to return what money they could find, he paid a fine, and he walked away without going to jail for committing absolute grand larceny on a monster scale. JASON HARTMAN: Un-fricking-believable. I mean, this is so disgusting. It's just—it's just disgusting! And it's amazing to me, like, one of the things I tell my listeners is, don't trust resumes. Ken Lay, with Enron—he was buddies with George Bush, okay? I'm sure the pictures were all over the company for people to see when they came in. Bernie Madoff was president of NASDAQ. Jon Corzine was governor of New Jersey! I mean, your resume doesn't get much better than any of those, right? JOHN LAWRENCE ALLEN: Oh, absolutely. And let's add to the list Mr. Mozilo, who was the chairman of Countrywide, who got bought out by B of A, and he was one of the large perpetrators of the entire mortgage debacle, and people lost billions, maybe even trillions, and he walked away scot-free and he, he had his “friends of Mozilo,” who got mortgage—well, I should put it this way. Members of Congress and the Senate, who got special mortgages from Countrywide at highly reduced rates, because they were friends of Mozilo. And he walked away scot-free. JASON HARTMAN: It's just a total insider's game. That old question, you know, when the broker takes his buddy down to show his buddy his new yacht, and his friend says, where are all the clients' yachts? You know? It's an in—that's what people have to understand. Wall Street is an insider's game. And the insiders are the ones who get rich, because the insiders have all the connections, and they basically make the laws. Because they have lobbyists, they have lawyers, they have PR firms, they have accounting firms, and the game is just so stacked against the investor, I don't know why the general public is still playing in this field. They're totally outgunned! And then you look at Michael Lewis and his great new book, Flash Boys, which I'm sure you're familiar with—I mean, are these—Goldman Sachs—are they just a totally criminal organization too? Probably. I don't know. It sure seems like it. It's just unbelievable. I mean, in Flash Boys, which I highly recommend, Michael Lewis talks—he just profiles all of these companies that are like, getting in line to do this high frequency trading, where the speed of light is not even fast enough anymore, at 186,000 miles per second, and all the people profiting from all of this stuff in the food chain, it's beyond despicable. It's totally rigged. JOHN LAWRENCE ALLEN: It's very difficult. It's a hard game to play. But, the other side of the coin is, with the Fed maintaining these totally illusionary, 0% interest rates— JASON HARTMAN: What else can you do? JOHN LAWRENCE ALLEN: Everybody's having a hard time trying to make ends meet, and they're forced, almost, to go into the stock market. Bad monetary policy forces people to take inappropriate risks JASON HARTMAN: Yeah, they're forced to do—see, this is—bad monetary policy like we have, forces people to take inappropriate risk! Because they can't get any yield in their bank account. And it's so sad to see the people that are older and have really done the right thing all their lives. You know, they saved money, they planned for the future, they delayed gratification, and now they got a few bucks. It's sitting in a bank account, being destroyed by taxes and inflation, especially inflation, which, you know, is higher than what the government would have us believe, and they just can't get any yield. So, they go in, and they play with the stock market, and, you know what happens. I mean, that's your business. JOHN LAWRENCE ALLEN: Yes. JASON HARTMAN: Yeah. It really— JOHN LAWRENCE ALLEN: Sad but true. Closing statements JASON HARTMAN: Yeah. It really is sad. Well, this has been a fascinating discussion. A lot of people tell lawyer jokes, but I'm glad there are lawyers out there who really help people get some justice. And one of them is you, so, thank you for doing that. And give out your website again. Of course the book is onwww.Amazon.com. I definitely encourage people to read it: Make Wall Street Pay You Back. The website is the same name, right? JOHN LAWRENCE ALLEN: Yeah. www.MakeWallStreetPayYouBack.com. There's also a section in the book about arbitration, what it's like, what you have to know, what it's like to go through one, so people won't feel so nervous about going through the process, and realizing that they have rights, they ought to stick up for their rights, and not be afraid to pursue even Merrill Lynch or Morgan Stanley or Goldman Sachs. JASON HARTMAN: Good. Good stuff. Well John Lawrence Allen, thank you so much for joining us today. This has been very informative. JOHN LAWRENCE ALLEN: Thank you very much, Jason, and I appreciate the time. [MUSIC] ANNOUNCER (FEMALE): I've never really thought of Jason as subversive, but I just found that's what Wall Street considers him to be! ANNOUNCER (MALE): Really? How is that possible at all? ANNOUNCER (FEMALE): Simple. Wall Street believes that real estate investors are dangerous to their schemes, because the dirty truth about income property is that it actually works in real life. ANNOUNCER (MALE): I know! I mean, how many people do you know, not including insiders, who created wealth with stocks, bonds, and mutual funds? Those options are for people who only want to pretend they're getting ahead. ANNOUNCER (FEMALE): Stocks, and other non-direct traded assets, are losing game for most people. The typical scenario is: you make a little, you lose a little, and spin your wheels for decades. ANNOUNCER (MALE): That's because the corporate crooks running the stock and bond investing game will always see to it that they win! Which means, unless you're one of them, you will not win. ANNOUNCER (FEMALE): And, unluckily for Wall Street, Jason has a unique ability to make the everyday person understand investing the way it should be. He shows them a world where anything less than a 26% annual return is disappointing. ANNOUNCER (MALE): Yep, and that's why Jason offers a one book set on creating wealth that comes with 20 digital download audios. He shows us how we can be excited about these scary times, and exploit the incredible opportunities this present economy has afforded us. ANNOUNCER (FEMALE): We can pick local markets, untouched by the economic downturn, exploit packaged commodities investing, and achieve exceptional returns safely and securely. ANNOUNCER (MALE): I like how he teaches you to protect the equity in your home before it disappears, and how to outsource your debt obligations to the government. ANNOUNCER (FEMALE): And this set of advanced strategies for wealth creation is being offered for only $197. ANNOUNCER (MALE): To get your creating wealth encyclopedia, book one, complete with over 20 hours of audio, go to www.jasonhartman.com/store. ANNOUNCER (FEMALE): If you want to be able to sit back and collect checks every month, just like a banker, Jason's creating wealth encyclopedia series is for you. [MUSIC] ANNOUNCER: This show is produced by the Hartman Media Company. All rights reserved. For distribution or publication rights and media interviews, please visit www.HartmanMedia.com, or email media@hartmanmedia.com. Nothing on this show should be considered specific personal or professional advice. Please consult an appropriate tax, legal, real estate, or business professional for any individualized advice. Opinions of guests are their own, and the host is acting on behalf of Platinum Properties Investor Network, Inc. exclusively.
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