Jason Hartman and investment counselor Adam start off the podcast show talking about a statistic that states 37% of US homes are owned free and clear. They discuss what that means to the housing market and related to your income property. After, Jason brings on client Drew Baker to talk about his experience in self-management and the savings from management fees and other operating expenses. They end the show with a discussion on Facebook and cryptocurrency.
If you don’t have any investment, real estate investments, you will not have the opportunity to learn to make mistake, learn from it. And then you will not be able to tell which one is a better investment. I think you just have to get it started somewhere and with the help of your investment counselor, and then keep moving forward.
Welcome to the creating wealth show with Jason Hartman. You’re about to learn a new slant on investing some exciting techniques and fresh new approaches to the world’s most historically proven asset class that will enable you to create more wealth and freedom than you ever thought possible. Jason is a genuine self made multi millionaire who’s actually been there and done it. He’s a successful investor, lender, developer and entrepreneur who’s owned properties in 11 states had hundreds of tenants and been involved in thousands of real estate transactions. This program will help you follow in Jason’s footsteps on the road to your financial independence day. You really can Do it on now. Here’s your host Jason Hartman with the complete solution for real estate investors.
Jason Hartman 1:09
Welcome listeners from 165 countries worldwide. This is Episode 1247. And we have got three things for you today we’ve got a little talk with Adam and I got an interesting new real estate statistic we want to share with you a very positive one by the way, then we’ve got a little sampler of our Amazon Alexa broadcast that you can get as an Alexa skill delivered to your device every day for free. And we have updated a bunch of these episodes. So if you have checked the Al x a skill, I can’t say it out loud listeners because you know what will happen? If you if you
always list the names?
Jason Hartman 1:53
Yes that they are listening scary. But if you have subscribed in the past, just note that we have updated it. So So we’ve got some fresh stuff there for you. So be sure to check it out. And please rate and review it on Amazon, we would appreciate that. So we’ve got that. And then we’ve got drew back on the show to talk about how he made an extra $8,000 on his income properties. So let’s dive in. Adam, welcome back. Great to be here. So, a lot of people a surprising number of people, I guess you weren’t surprised, but I was. A lot of people own their homes free and clear. Tell us about it. So Zillow,
came out and did a study and they found that 37% of homes were free and clear. And that’s increased five and a half points in the past 11 years. And it didn’t surprise me all that much. Just because as we’ve talked about in the past, we have a lot of millennials not in the market. You have a lot of young people not in the market. And let’s face it, older people tend to pay off their homes because of time and because that’s just kind of how they were raised is you go in, you buy a home, you pay it off, then you’re
Jason Hartman 3:06
set for the rest of it. You have a you have a mortgage burning party, like literally, they used to have
my parents. It was insane. My parents got the money from their inheritance. And I don’t remember exactly how much it was, but they took it and they just paid off their house with it. They didn’t want to use it for investing or anything else. They just paid off their mortgage because then they had that, as they said, they’re like, well, we have the burden lifted off of us.
Jason Hartman 3:31
All right. That’s a delusional belief but fine with me, okay, you still have property taxes and maybe association fees. You have a perpetual lien on your property even if your mortgage is paid off, but Okay, fine. We’ve discussed that ad nauseum in prior episodes. But you know what this really says to me. This says that when the next recession hits and it will definitely hit when the next downturn hits when the next cycle comes and it rears its ugly head. Real Estate’s going to be a lot better off than it was in past cycles. Because you’ve got so many people owning their homes free and clear. And you’ve got very few mortgages that are underwater. Now, on an episode this week, you know, let’s make sure we talked about this this week, I met with a friend of mine yesterday, my friend Jason Yes, it’s easy to remember each other’s names. He shared with me the data that will interest you listeners, and we’ll talk about this when we have time on another episode here coming up about the home his parents purchased and the price history of it. I will share that with you. We’ll get to that this week. So look for that this week. It’s pretty fascinating. What else do you think about this? Basically, rounding off 40% of homes in the US are mortgage free. What do you think
about that? Well, I found it very interesting that if you look at the top three states, two of them are actually states that we invest in and that’s Mississippi and Louisiana. You know, Mississippi is actually a very 51% in Louisiana is at 48%. So as we were talking about in regards to real estate dropping, obviously that’s a nationwide thing. But locally, if 51% are free and clear in Mississippi and you have homes in Jackson, that’s pretty good sign for you that your value is not going to fall through the floor.
Jason Hartman 5:18
Yeah. Now, let’s tease that out just for a quick moment. Okay. look at why does this mean anything to anybody listening about the value of their properties? Well, I’ll tell you why. If the neighboring properties are over leverage, and the cycle turns, and these people are forced to sell because they can’t service the debt, then you get this downward spiral. And we saw that during the Great Recession 10 years ago, right. We definitely definitely saw that play out. But when their homes are free and clear, that means there’s a lot more stability in the marketplace. It’s a pretty significant thing. I think this is a This bodes very well for market stability. Although, you know, of course there are over leveraged underwater markets that well, I don’t want to say underwater yet, but declining markets in the cyclical areas that we’ve also discussed ad nauseum.
And especially if you have your renters coming in looking, are they really going to want to see a rental home sitting next to a foreclosure sign or home that’s, you know, in disrepair, because nobody’s lived in it for a year. You know, you’ve just got the general makeup of your neighborhood and market as they see these things. I mean, it’s a big mental hurdle that people are going to have to get over if the market starts trending downward.
Jason Hartman 6:39
Right, right. So this is good news. And the market will start trending downward at some point there’s, there’s no question there is a cycle and the cycle will come although this has officially been the longest economic expansion in US history. I know. I know. Adam, you hate Trump, but maybe you got to start liking him a little bit better.
Well, it also tells me that 51% of people in Mississippi haven’t heard your refi until you die technique. That’s true.
Jason Hartman 7:06
Yes. Now, of course, you got to be able to separate the two concepts, right? That’s a sign of intelligence to be able to hold opposing thoughts in your head at the same time, right? And all our listeners are super intelligent, so won’t be any problem. But we’ll just point this out. And what that means is that we’re not saying you should pay off your mortgage. Of course, we like the debt. We like the leverage. We recommend it, but it’s good for you that your neighbors own your home free and clear. That’s very good for you, but don’t do it yourself.
Absolutely. You don’t want to you’re sitting there. It’s like we like you’ve talked about before, like we’ve talked about, why sit on debt equity,
Jason Hartman 7:45
that definitely you don’t want lazy equity. You don’t want money sitting around in your properties. Now. I did an interesting YouTube video from the deck of the cruise ship on the Baltic Sea a couple of weeks ago. My girlfriend was filming me as I did it, and I It was very windy out there. And I talked about when you might want to pay cash for a property. There are some rare circumstances, you know, some things to consider, right. But mostly you’re better off having the mortgage. But check out our YouTube channel and and you can see that video as well as a bunch of other videos unique content strictly for the YouTube channel. Just go find Jason Hartman on YouTube. All right, Adam. Let’s dive in and play this quick little blog cast. It’s just a couple minutes long, and then we’ll be back with Drew to talk about how he made that extra 8000 bucks on the money, here’s your market supply update. In order to demonstrate the impact of inflation, it is worthwhile to examine the purchasing power of one US dollar through time down to the current levels. The best place to start is in the year after the federal Reserve was created, namely 1914. In the 95 years since the Federal Reserve came into existence, the US dollar has lost 95% of its purchasing power. Some of the more notable movements and purchasing power occurred during the beginning of the Great Depression when the Federal Reserve contracted the money supply and initiated a deflationary spiral that pushed many banks out of business and created a compounding recession. Another notable movement happened after the end of World War Two when the government attempted to retire its war debt by destroying the value of war bonds that were sold to us citizens through inflating the money supply. Subsequent devaluation to the dollars purchasing power came in the 1960s as President Johnson attempted to finance his social programs for monetizing the debt. When the dollar was decoupled from the fixed price gold standards in 1971. It became even easier for the Federal Reserve to inflate the currency and purchasing power continue to deteriorate throughout the world. Rest of the decade. A period of relative stability started in 1983 when Chairman Volcker and President Reagan resolved to break the back of inflation through monetary tightening. Unfortunately, the current monetary expansion is placing this period of relative dollar stability at great risk. As prudent investors we seek to be in front of emerging economic trends so that the disruptions caused by irresponsible government works to our benefit instead of to our detriment. by purchasing income property that’s financed with low fixed rate debt, the inevitable inflation will destroy the value of our debt and push up the value and rental income of our investment properties. This will places in an attractive position of becoming wealthier while government policy is making most of the country poor. Now we’re not cheerful over the prospect of massive wealth destruction, which seems to be inevitable at this point. However, since we can’t stop this wealth destruction, our next best move is to arrange our finances so that it does not destroy us. So I hope you enjoyed that quick little mini lesson and be sure to subscribe to our free Alexa skill. And you can get those every single day delivered to your device. And if you don’t have one of those devices, of course, you can download the app on your phone and listen there as well. Okay, let’s go to our main portion of the show today’s we’ve got drew Baker, our client back on to talk about how he saved or made depending on how you look at it an extra $8,000 on his properties. Here we go. I want to welcome back another client case study but this is a client you’ve already heard from, and it is Drew who’s back on to talk to us about two things. He’s taken a calculator to his self management endeavors. As you may know, Drew and I were friends for about two years before he started buying properties from us. He’s purchased a dozen properties, I guess he’s going to tell you how much he’s saving with self management and how much more control he has. But we’re going to talk about something else that is very important. And that is Facebook. Yeah. Social media. No, not really like that. We’re going to talk about Facebook getting into the cryptocurrency business. You know, we’ve talked about crypto currencies, what they mean for the economy, whether they will make it or whether they will fail. If you want more on cryptocurrency stuff, listen to my crypto cast show. Certainly a big thing going on in the world. Again, I don’t have a lot of faith that it’s going to win. Unfortunately, I wish I’d be wrong about that. But it’s interesting the angle on Facebook especially so we’ll talk about that too. DREW Welcome back.
Drew Baker 12:48
Hi, Jason. Thanks for having me. So you,
Jason Hartman 12:50
you pulled out the calculator today, I guess, huh?
Drew Baker 12:54
Oh, yes, yes, I pulled out the calculator. I was interested because every year I kind of have My income and expense sheet that I use to kind of map out. So that way I can kind of see progressively through the years kind of how my portfolio is morphing and changing. And so every year I talk about kind of where the security deposit was, where the target rent was, and then kind of how much I made each month. So it’s easy to present that. And if I was really smart, I would probably use your software systems, but I’m old fashioned. So maybe one day I’ll get in there and add all the data into your property tracker. But this has worked for me. And what I’ve basically done is over the years of self managing, or I should say year because there’s only been it’s only been a year. Yeah, yeah. But going through the years, making that transition, you know, over looking from late 2017 to then kind of mid 2018, where things started to kind of shake up a little bit to now I’ve kind of seen that transition happen and it’s been interesting. Seeing kind of seeing how much I’m making on the properties that I’m self managing. So far, our total of nine tenants but only eight properties. And in one year you signed
Jason Hartman 14:11
a duplex or you had one as a guest. One
Drew Baker 14:13
is it one is a duplex. So that’s eight properties, but maybe nine tenants, nine doors you can i indoors. Exactly. So if you look at the transition there, I’m making an extra $660 a month in rental increases, because you know, the property manager was having a lot of these tenants go month to month, the economic situation in those areas has changed where now the rent values are a little higher than they were before. They kind of stagnated for a couple of years. And now the rental market is fairly strong in these neighborhoods. So if you take that eight properties, nine doors, I’m making 80 $100 extra per year. Wow.
Jason Hartman 14:57
And cue the laws.
Drew Baker 14:59
Yeah. Yeah, you know, I don’t know how much this is necessarily how great I am. It’s that if you look at what was going on before, it was a little bit of just letting it sit there and not taking the fruit that was easy to grab, you know. And keep in mind, most of the tenants that got upset more than half the rent increases are with tenants that decided to stay renew, and are happy with the new situation, even though they’re paying a little bit more. They feel like they’re getting the service that they weren’t getting in the past.
Jason Hartman 15:34
Yeah, see, this is going to be interesting to see how this plays out over the years because I say, your tenant retention is going to be a lot better. And guess what that’s going to do? It’s going to cut down on your make ready cost. And I gotta tell you, you know, occasionally some of you dear listeners you asked me, Jason, you know why you into the self management thing so much and I’ll tell you why. I have altruistic reasons, but I also have selfish reasons. Okay, listen, I’m a capitalist. Okay? And I just know that if we have to depend on lame people being our storefront, as you said, Drew, you said that to me today, that was a good key word for the customer experience that happens after they buy a property and we can’t control that. That is not a good business plan for us. And you know, for years we’ve had and recommended managers we’ve had the good, the bad and the ugly, some of them are great, but what I find is that even with the great ones, they’re eventually gonna disappoint you. I got some disappointing news with one of my own managers today that I’m gonna I think I’m gonna fire but you know, I try to not talk too much about anything until it kind of plays out. So I try to bite my tongue and you know, wait, wait till it plays out, you know until I talk about it because I don’t know. You know, it’s never over till the fat lady. As the old saying goes, and I want to get through it before I talk about it too much, and that’s with all things.
Drew Baker 17:06
It’s funny that is saying like that is dangerous today. So
Jason Hartman 17:08
Drew Baker 17:10
sorry. I apologize. Well, the thing that’s funny is when you mentioned that you want to wait till this plays out before talking about it. We spoke earlier in the week about one of my properties, and I had something unfolding with the tenant and I said, I think this would be a good conversation for the podcast, but I said, I don’t want to gloat about something that hasn’t officially happened. So I can now unwrap this story if you wish about a success and kind of the walking through of what happened with one of these properties that I have. Is this the water heater story? Yes. Okay, well, let’s let’s take a break for a minute and just break up the show a little bit and we’ll get back and we’ll do the water heater story. Let’s just jump over to Facebook and their cryptocurrency antitrust scam for a moment if we can. Okay, and then we’ll come back With a water heater, it just seemed more interesting to kind of do a little intermission here. So cryptocurrency drew now
Jason Hartman 18:06
I don’t know that we’ve talked too much about this. I mean you’re not into crypto at all Are you are you I don’t know I don’t talk to you about this.
Drew Baker 18:14
It’s funny that you you bring it up because I was aware of Bitcoin when it was $1 and should have coulda woulda? Yeah, yeah, I actually recommended a podcast you long ago that no, basically, yeah, no agenda, which has Adam curry and john C. Dvorak, which are both two techies who go on more tangents than I do and ramble longer than I do. So, if you think I’m bad, don’t listen to that one.
Jason Hartman 18:43
I even I couldn’t listen to that one. It’s like an hour and a half of them just talking about everything.
Drew Baker 18:48
Yeah, they’ve kind of gone down the rabbit hole of inside jokes to a point it’s hard to follow. But I don’t have time now because I have a family to listen to every podcast I did in the past. But anyways, they had solicited to get donations to keep their podcast going. And as a social experiment early on in 2010 or so I believe they requested like, hey, send us Bitcoin for us to see if we can spend it and, you know, we’ll report back to you how it goes. So they solicited for 100 Bitcoin that they got 100 Bitcoin, and they went out and bought like a cup of coffee and some other tchotchkes and at one point, it was funny because they had to tell people to stop sending them Bitcoin, because they couldn’t figure out how to spend it and they joked and said, and just like please send us cash because we don’t know how to spend this. And
Jason Hartman 19:37
you might be saying that again in the future, but yeah,
Drew Baker 19:41
so I mean, 100 Bitcoin I mean, that’s, you know, crazy. What’s that $8 million or something now so you know, I think now they have like two Bitcoin as they spent most of it but what’s funny is I’ve seen it change and morph over time. And boy, I, I think it goes back to what is that saying that you always say that like, you’d rather be lucky than right or whatever, I think that rather be lucky than good thing. Good. Okay, there you go. So I think there’s a little bit of that going on
Jason Hartman 20:07
here as well. Look, you know, you’ve heard my view on cryptocurrencies. I’d love to be wrong about this. I’d love nothing more than to see some decentralized currency, take over the world, so that the powers that be would lose their power, the banking cartel, the Rothschilds, even the government’s too, but I don’t think it’s going to happen. But what’s really interesting about this is Facebook and cryptocurrency because they’ve already got an audience of what, almost 2 billion people. So this is interesting. Now, I had this reporter on the show in the past, his name is Ben Swann. And he’s pretty interesting guy does some hard hitting investigative journalism. I like his work. I don’t care what anybody says. I think he’s quite talented, and I should have him back on the show he was on a few years ago. Just listen to this news report. I think you’ll find this to be quite fascinating listeners because you’re interested in money and monetary policy and hopefully democratic ideals. So let’s listen to this
Drew Baker 21:11
needs to be investigated in terms of anti trust when it comes specifically to the issue of cryptocurrency. Consider the fact that New Year’s of 2018 that Mark Zuckerberg said he was going to do a deep dive into cryptocurrency and learn much more about it. within the next few months Facebook as an entity banned all cryptocurrency from appearing on Facebook. Now what’s
Drew Baker 21:32
your take on this project now? And why should users trust Facebook to be the centralized banker when there are so many other stable point options such as makers die where you don’t even need a middleman bank?
Drew Baker 21:44
That’s right, well, the short answer is they shouldn’t. Users should not trust Facebook in this space. Look, Facebook has already proven that they are not worthy of even holding your data for you without it being exposed to third parties sold to third party These abused or even stolen So Facebook does not do a good job of protecting you right now, as a user of a social media site. Why would you expect them to do a good job of protecting you as a holder and user of their digital currency? Which again, as you pointed out, rightly so is not a cryptocurrency. But the other thing is this, Christy it could Facebook actually robs cryptocurrency of all the things that give it value, the idea of decentralization the idea of establishing new monetary systems, the idea of breaking away from banking systems as we know it, it destroys all of that. And Facebook has proven itself to be a big brother working with governments around the world against independence among its users. So I don’t think we should trust Facebook on any level when it comes to any kind of digital currency.
Jason Hartman 22:45
I couldn’t agree more. What’s interesting about that, I don’t know if you listeners all caught what he said a moment ago, but Zuckerberg says I’m going to learn more about cryptocurrency. He makes that statement publicly. And then A few months later, they ban all crypto currency advertising on Facebook on Facebook ads right they won’t let anybody do it any crypto ads for all these other currencies Bitcoin, etc You know, whatever, they’ve got going wallets, any crypto related stuff, they ban all that. And then they announced that they’re going to do their own and I’ll do this in like single quotes you know cryptocurrency it’s not really a cryptocurrency in the sense that we all think of it, but it’s still a digital currency. So I guess it is a cryptocurrency but it’s sort of not through any comments so far.
Drew Baker 23:34
Well, it is interesting. I mean, the problem with these big businesses creating their own currency is they’re basically like big government without any accountability. So I don’t know how much I trust that. But I think it is interesting where you could create a corporate currency that could go between different countries and you wouldn’t have to deal with all the complexity, but I wonder how they then would crack down on embezzled. Men or, you know, although all the various
Jason Hartman 24:03
crimes. But look, the thing is, of course, we have talked quite a bit about the tech tyranny. These big tech companies are just abusing their power over and over and over again. And I’m the last one to scream, we got to regulate them. But thankfully now I’ve been saying that for a couple of years regulate them. I have been saying that against my philosophical beliefs generally, but they need to be under the common carrier rules, like a utility is like the phone company is they need to be busted up under antitrust laws, or they just need to be regulated heavily when you have companies that are bigger than lots of governments and have way too much power. It’s not like there’s free market competition. So it’s got to change. Let’s keep listening.
Drew Baker 24:52
And it also seems kind of counterintuitive to make this foray into crypto space that essentially positions Facebook to enter the payments and bank sector when they’re already the focus of an antitrust probe, you know, going into a new area when you’re already under scrutiny for having a monopoly. How is that going to play? Well, actually then you and that’s actually a really important point. Facebook needs to be investigated in terms of antitrust when it comes specifically to the issue of cryptocurrency consider the fact that New Year’s of 2018 that Mark Zuckerberg said he was going to do a deep dive into cryptocurrency and learn much more about it. within the next few months. Facebook as an entity banned all cryptocurrency from appearing on Facebook, no ads were allowed to be sold. If you have hosted any kind of a Bitcoin or cryptocurrency conference, you couldn’t advertise on Facebook Icos weren’t allowed to advertise on Facebook. And so the idea was, well, Facebook is protecting from scammers and all that well, okay. If you want to ban Icos because you claim that they’re all scams, why didn’t you stop people from even learning about crypto currencies, they banned everything and then turned around and loosen those controls about the time that they said, oh, by the way, we’re going to issue our own cryptocurrency. And so here’s the problem with convenient antitrust laws and even just going back into the 1950s laws have been passed that essentially say you cannot block advertisements that are competitive to you. Facebook was doing exactly that, at least at least I think the argument could be made for that.
Jason Hartman 26:21
And then Amazon does it too, in essence, but yeah, all these big companies just abusing their power like crazy.
Drew Baker 26:27
They were protecting themselves against mass adoption of these other kryptos. While they themselves were designing and planning to release their own crypto.
Drew Baker 26:36
Now moving on to Apple, they kind of did the same thing. They said that they are now going to be releasing the iOS 13 software, which will feature a cryptographic developers tool. And this is also interesting because Apple presea, delisted Coinbase and a whole host of other crypto as far as App Store. So what do you make of this shift in attitude? What can you tell us about this?
Jason Hartman 26:57
See Coinbase can have an app in the Apple App. Because it’s going to compete with Apple’s cryptocurrency anyway, the video is almost done.
Drew Baker 27:04
Yeah. So again, very similar type of situation where coin base was delisted, from the app store as well as others, it makes us just a little bit different is that Apple could always lean back right now and say, Look, we’re not creating our own cryptocurrency, we’re using a cryptographic system that essentially allows you access to private keys and, and it’s a way of securing better your computer better securing your phone better finding your last item, they could make that argument and they’re probably right for that. But in reality, it could also allow your iPhone or your iMac or laptop to essentially become a secure crypto wallet. That’s really what this leads us to. And by the way, I have to point out because I love to say this about Apple, Apple was once again behind others, including Samsung when the SDN came out. They already had a crypto wallet built into it. That technology so again, Apple was behind but a little bit different than Facebook but even so could be the same issue with antitrust
Drew Baker 28:08
cryptocurrency analysts, Ben Swann, thank you so much.
Jason Hartman 28:10
Yeah, really, really interesting stuff. You know, the problem is with governments, well, least democratic governments, you have recourse against their power. With these big tech companies, you have nothing. Like if they just say Oh, Coinbase bye to your app. You know, Facebook says no more ads with anybody else. What are you going to do sue them? I mean, it’s ridiculous. They totally abused their power. Drew, you got good news. Another good self management story about a water heater you saved a bunch of money, Hey, your tenant did the job for you didn’t they?
Drew Baker 28:42
It did eventually work out in that direction. But we kind of took one step in front of another and ended up getting there so the tenant had reported to me that the water heater was not producing hot enough water and was going out and he you know, adjusted the pilot Was tinkering with it. And so you know, this was memorial day week, I tried to coordinate with a plumber to go out there. But since it was a short week, the next available date was like six or seven days after the fact. And he said, I don’t think anyone here wants to wait a week to tinker with this. So he said, You know what, let me look into it. Let me see what’s going on. So he reported back to me and said, Well, we can replace this part for $30. And if that doesn’t fix it, we can replace this part. $450 What do you think? And so I said, Well, hey, why don’t you get me a picture of the water heater? So that I can assess how old it is. And his wife texted me a photo of the sticker on the water heater. I called the company and gave them the serial number. They told me it was produced in 2010 or 11, something like that. So it was about eight years old, nine years old, something like that. And I asked them, you know, what’s the typical longevity of this part they said usually 10 to 13 years, I
Jason Hartman 30:03
thought that when will soon for it to die?
Drew Baker 30:05
Yeah. And so I asked them about that. And then and I know that that city that this is in has pretty hard water. So that tends to shorten the lifespan of a water heater. So I talked to 10 and said, Hey, you know what, let’s just replace it with a nice one from Home Depot. And he said, Well, you know what, this kind of piques my interest. I’m an electrical engineer. And I would be happy to do it for you and try to see if I could figure it out. And if it goes awry, we can get the plumber in here to get us to the finish line. Yeah, so I said sounds great. So he got back to me the next day with a beautiful photo showing me of the unit installed and said, I’m filling the tank now and I didn’t hear back from him until a couple days later. I said How’s it going? He said it’s great. So I sent him the money and I gave him $100 tip for his trouble. You know, he probably saved me about 500 bucks. So it worked out great. And it was all just because him and I were communicating and it wasn’t something that he was opposed to helping out with. And I think he has a sense of accomplishment. And I don’t think the tip hurt the morale at all. So yeah, it worked out
Jason Hartman 31:18
great. And he also has a sense of ownership through. He’s now feeling like he’s improving this house. That’s a great thing for your tenant to have a sense of ownership. So very good. That’s a great story. And it’s, it’s awesome, folks. I highly recommend self management. It just seems to be something that is working out quite well for people. Listen, if you’ve got a great property manager, you know, do what I do. Just keep your great ones until they disappoint you someday, and hopefully they never will. And if you got mediocre or bad property managers, just dump them say what Trump used to say on the apprentice. You’re fired. Get rid of them and take control. I mean, what our investment philosophy is all about as being the empowered investor being a direct investor being in control. And you’ve shared many great stories with us on this, one more thought that
Drew Baker 32:13
I would recommend is if you have, you know, four or five properties or a couple properties, and there’s one that doesn’t seem to have much in regards to maintenance issues, and just the tenant in there pays reliably every month. That might be a great one to take control of, rather than necessarily firing them when all Hell’s broken loose. Yeah, you may want to try a more subtle approach of picking one that doesn’t have many waves. And that way, you can go in there build a rapport with the tenant, and if there’s an issue, you can address it then so like one of the markets that I’m not too acquainted with, I took over the property one of the four that I have, that had the least problems, talk to the tenant was able to negotiate a raise the rent, increase One or two issues came up during this process. And it was nice to be able to go in and find new vendors and work with a tenant to say, Hey, what do you think about this? What do you think about this? And so they were kind of a coach and helping me accomplish what I was trying to without having to recreate the whole world at a standstill.
Jason Hartman 33:19
Very good point, get in control of your properties. And do you know, especially if it’s your first attempt at self management, do take over on a nicely stabilized property, a stabilized property. So you can, you can, you know, get that relationship with your tenant going before. And again, we have the empowered investor community to help you with us. So ask your investment counselor about that. For more details or hear more details on on these various episodes that we do. You know, we really want to take it to the next level with all our investors. Drew, thanks for sharing another great couple of stories with us your day, you’re making an extra $8,000 a year You saved a bunch of money on a water heater replacement because the tenant basically did the work for you. Keep up the good work to everybody else listening, visit Jason hartman.com Check out our properties there, contact an investment counselor. Let us know how we can help you if you have questions or comments. Go to Jason Hartman comm slash ask and we’d be glad to take any feedback or questions or comments there. We will talk to you soon Until the next episode. Happy investing. Thank you so much for listening. Please be sure to subscribe so that you don’t miss any episodes. Be sure to check out the show’s specific website and our general website heart and Mediacom for appropriate disclaimers and Terms of Service. Remember that guest opinions are their own. And if you require specific legal or tax advice, or advice and any other specialized area, please consult an appropriate professional and we also very much appreciate you reviewing the show please Go to iTunes or Stitcher Radio or whatever platform you’re using and write a review for the show we would very much appreciate that. And be sure to make it official and subscribe so you do not miss any episodes. We look forward to seeing you on the next episode.