Jason Hartman discusses today’s booming economy and the real estate market in spite of the on-going pandemic. He talks about how we can make sense of all this and goes into some of the government intervention that is happening. Later he talks about the differences between new homes and the luxury market. He ends the show with a discussion on being an arbitrager, not just a landlord.
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. And now here’s your host, Jason Hartman with the complete solution for real estate investors.
Jason Hartman 0:54
Welcome to Episode 1495 1495 Thanks for joining me today, as we look at an economy and a real estate market that is, and I’m doing air quotes here, folks blooming. How can this be? It doesn’t make any sense. Of course, it doesn’t make any sense. because very few things actually make sense in an economy and a real estate market that has this much intervention, an unbelievable amount of intervention, historic, never before seen in human history. You are living through an incredible time. In many ways. It’s an amazing time to be alive as I always say, it is an amazing time to be alive. But Wow, some of this stuff is so so outlandish that you just couldn’t write fiction like this. Could you? You couldn’t, you could. Okay, so I’m looking at a chart here. New Home Sales. Will soon breach the pre COVID level. Now this is the Mortgage Bankers Association otherwise known as the NBA Not to be confused with the overpriced college degree. Hey, I think it’s great if you get an MBA but just don’t get ripped off in the process. You’re supposed to be a good businessperson don’t overpay for an education. That’s the first rule that almost was a tangent, but it’s not anyway. So when you look at new home sales, they are almost at the pre COVID level. Okay, they’ve almost eclipsed to that is what I mean. Mortgage applications are through the roof for both refi and purchase mortgages, purchase money, mortgages and refinances. Everyone wants to cash in on these very, very low interest rates, including oddly and you know, this stuff is complicated to sort of tease out the data. To hear to really understand what’s happening, and that’s why we try to do it here with you five days a week. So, luxury markets. Let’s talk about the luxury home market. What are those rich people doing? Where’s Robin Leach with Lifestyles of the Rich and Famous? Some of you don’t even know what I’m talking about, do you? Yes, you young uns, you don’t know there was a show called Lifestyles of the Rich and Famous. And Robin. Robin Leach would say champagne wishes and caviar dreams. That was the
Jason Hartman 3:34
that was the funny thing. But that’s when the wealthy class was a lot smaller than it is today. A lot more people have moved up. And sadly, a lot more people have moved down. So we’ve seen the hollowing out of the middle class over the last few decades and love them or hate them. Donald Trump stir is trying to bring that back but there’s some pretty big forces Is dinner trying to prevent that? But what are the rich doing? Well, amazingly pre COVID we saw expensive real estate markets declining, declining, declining. They were overvalued a lot of these markets. But we are seeing some of that change. Certainly. So we got a couple stats here for you from realtor.com. First of all, since January, only, that’s an only 25 of the 94 luxury markets that realtor.com tracks showed listing price growth. Okay, so, prices growing in 25 of 94 luxury home markets. The results of the pandemic slowed the growth in the luxury market. And here’s one of the parts that makes that tough to understand was that decline in growth due to people pulling their houses off the market, or not listing them all. I mean, think about it. There were probably lots and lots of people in any and every segment of the housing market, who in November, December, January, were thinking to themselves and talking to their spouse and thinking, Well, you know, when spring home selling season comes, when that rolls around, let’s put our house on the market. And let’s move this here. But then the COVID scare hit. And they thought, Oh, I don’t think we want a bunch of strangers. And there are viruses coming through our house right now. Not a good idea. And even if they did want a bunch of strangers and viruses coming into their home, those strangers and their viruses were staying home, so they didn’t want to go into someone else’s home. So a whole selling season was pretty much lost. Now we’ve pushed it back a few months, maybe three months, and it’s happening now. So spring selling season is now the summer selling season, which is a little bit unusual. Usually it happens earlier happens before summer and summer. Actually, it usually slows down a little bit. Now, when you look at that, you’ve got to understand that there’s a lag. You know, if you’re looking at stats, and you’re thinking, well, Jason is wrong, because I saw this chart that showed that over the last 20 years, the summer was a really busy time for real estate. Well guess what you were looking at you we’re looking at the closing, not the origination of the deal. Remember that lag time, always remember, real estate reports slowly, it’s about a 60 to 90 day lag, sometimes longer. Remember, deal happens. People buy deal clothes That’s 45 days later, maybe maybe it’s 60 days later, it might be 30 days, it depends. Sometimes it’s even longer. If it’s new construction, it’s longer longer. And then that deed gets recorded. And then those recording documents, those statistics get aggregated to all of the news sources and the aggregators like corelogic, and so forth. And then there’s another lag time before it gets reported to the media. So it’s always complicated. So just understand that. But speaking of which, according to Zillow, new home listings of higher end homes, they don’t tell you what that exactly means. But take it for what it’s worth, have been down by, you’re ready for this 46%. Well, less expensive homes are down by 32%. Okay, so you see the decline in inventory, which if you have a decline in inventory, you automate Attica Lee have a subsequent decline in sales, right? But look at this. Remember we’ve talked a lot about New York, the most populous city in America, and certainly a hotspot for contagion and subsequently civil unrest. So not only are luxury listings seeing more viewers, but popular second home markets are seeing the love too. Now, this article is talking about how views have increased dramatically on listing sites like Zillow and realtor.com. Okay, Suffolk County, New York where the Hamptons is located. Palm Springs in Riverside County, California. That’s beautiful luxury area. I love Palm Springs great place. In fact, I’ve done some podcasts from there because we had a venture lions trip there and then Carmen and I visited Palm Springs last year, as well. Really cool place in Greenwich in Fairfield County, Connecticut, are all ranked as the top five markets with the increase in listing view growth in May. Okay, so realtor.com This is their stats. So the views for these markets accelerated by 56% 56% in the Hamptons area 28% in Palm Springs, and 24% in Greenwich, Connecticut, compared to January’s trends, so people are looking for these outlying areas, just as I predicted. In New York where COVID-19 has remained a constant hotspot, luxury homebuyers are gravitating outwards. So there you go. What a surprise. It’s not a surprise to any of us now, the luxury homebuyer market is kind of interesting, because in every market cycle, it always seems and this is a bit anecdotal. I’m not going to present like any big data on this, but it’s just kind of an impression that the market is Either increases or deteriorates from one segment or another. Sometimes it’s a domino effect where the entry level buyers start selling their first home, and then they go buy a more expensive home. And then those people go buy a more expensive home, and so on and so on and so on. And you have that Domino going up to the high end. But sometimes the high end market collapses. And a lot of that is tied more to the financial system, because we live in this completely ridiculous, over financialized world where so many people are making absolute ridiculous fortunes based not on producing anything, but just on having a derivative, a financial derivative of that production. So for example, you have companies that produce widgets, and to the outside world It looks like they’re in the Business of producing widgets. But really what they’re in the business with a lot of times is they’re in the business of financial instruments. They’re in the business of creating stock, which is a Fiat concept. Remember, stock has no intrinsic value. It’s paper. It’s literally Fiat. It’s like printing your own money. Hey, Federal Reserve Treasury, yes. It’s just like that pretty much in a different way. And the same with bonds, right? So we live in this highly financialized economy. And then don’t even get me started on all of these crazy derivative instruments and all of this financial innovation. Whenever you hear that term, be worried Financial Innovation gets worrisome. Like I’m looking for a new car right now. My lease will be up on my German car, and I’m thinking, you know, I’m not going back to that brand anymore. I’m going to do something else. And I’m shopping around and I keep reading these articles that auto sales have plummeted. And it’s great time to buy a car. And of course, interest rates are super, super low. And even though I could pay cash, I never would I want to finance my car. So I look at the rates for purchases versus leases. And what you come to realize is that you think, okay, here’s an auto dealership. How much money does that dealership make in the sale of the actual car? How much does it make in the financing of the car? And how much does it make in the service department on servicing of cars, both warranty and on warranty servicing? And I do not know the answer to that. But I will venture to say it’s about a third, a third and a third. If anyone owns an auto dealership or knows that industry, go to Jason Hartman comm slash ask and educate me because I need to be educated. So Do that. But it’s it’s really interesting that you see so many of these companies. And when we look at the big mega corporations, the multinational corporations that have no allegiance to anything except the Almighty, well, mostly dollar, even though they hide their money offshore, they play games they domiciled different businesses elsewhere, and they suck all the profit out of their high tax jurisdictions to their low tax jurisdictions, which by the way, you should do that too. Because that’s the game. And we don’t live in a world anywhere anymore. Sadly, really, sadly, we’re doing what’s morally right is the thing. We just live in a world where everybody goes to get the best deal they can, and that’s the way the world works. Okay. So, for better or worse, we want to align our interests with these big giant, many of them disgusting, multinational corporations and ridiculous government. And ridiculous central bankers. And I’m going to tell you another way you can do that. Now we’ve talked obviously many times over the years about inflation induced debt destruction, I DD inflation induced debt destruction, my trademark term. And that is a very good way to align our interest and financial allies, more of our lives in a good way where we can profit from it. So when you are a landlord, are you in the business of renting out homes to people? Are you in the business of renting homes to people? Well, yeah, and if you talk to anybody at a cocktail party, oh, wait, you probably wouldn’t do that anymore. You’d have a happy hour on zoom, just like we’re doing for our upcoming meet the Masters event on July 31. We have a happy hour, welcome reception. That’s going to be real fun. And that’ll open Friday night and start that at seven o’clock eastern. So it’ll be four o’clock for you folks and Pacific. And you listeners in Hawaii. Well, hey, you’ll have to start drinking with us early because it’s five o’clock somewhere, as Alan Jackson would say, by the way, that is a fantastic music video. And I remember last year, Carmen took me to this bar, not too far from my place here in Florida for the first time, and it was a really cool like very casual outdoor bar. And I looked around there and I couldn’t help but thinking I had seen that bar before. And it didn’t look exactly the same as it did in the music video. But I thought this is the same place where they filmed the music video for Alan Jackson song. It’s five o’clock somewhere. Great song, check out the music video. You’ll love It, it’s really good. And you know, it just has a cool vibe that sometimes we all need a little escapism and, and that song is all about it. And it’s a great video one of the best music videos of all. So yeah, I asked the staff, and she told me Yes, that video was filmed there. So I was right. And that’s pretty cool. And I went there later with another one of our fans and listeners, and that is Jason, who is listening probably. He’s probably listening. He was on the show before and talked about economics. But anyway, back to the topic at hand here. So it’s five o’clock somewhere. Oh, yeah. Well, that was just a little tangent on our upcoming meet the Masters event. And we’re looking forward to seeing you there our virtual event. Oh, yes. That was the thing we were talking about. If you’re talking to someone at a cocktail party, right, and you wouldn’t have a real live cocktail party now. Because you’d probably do it online. So you’d be on zoom. You’d have your cocktail party, and you’d be talking to someone they say, Well, you know, what do you do what’s going on with you? Well, I’m a real estate agent. Faster. Oh, so you write out houses to people? Well, that’s what it looks like on the surface. But really, there’s a lot more to it than that. Because we live in this highly financialized world in we as investors are learning to financial eyes, our lives, just like the big corporations and the big governments and the big central bankers, and we’re going to take advantage of those same wealth building benefits that they are. We look like a landlord. That’s like the front. You know, when I used to live in Newport Beach, California, there’s a little sub area of Newport Beach called Corona Del Mar. And I always wondered in Corona Del Mar, there’s not so many of them around now. But back in the day, you know, in the, in the 90s, in the early 2000s, they had right along Pacific Coast Highway PCH in Corona Del Mar. They had a bunch of these these rug stores. I was a local realtor I owned a real estate company there. And I mean not in Corona Del Mar but you know, we service that market, right? It was right next door. And this was the funny thing. So I kept thinking to myself there are all these stores, along PCH here that so like these Persian rugs, and these Turkish rugs, and I thought, here I am a person who’s been in so many of the homes around here, and I just don’t see those rugs. How can these stores stay in business? I don’t see a bunch of places with Turkish rugs and Persian rugs and you know, flying carpet type rugs. You know, I bet someone will find that offensive. Oh.
Jason Hartman 18:47
We live in a ridiculous world nowadays. Everybody’s just looking for a reason to be offended about everything nowadays, aren’t they? And now more than ever, if we have time, I’ll give you a couple examples that So anyway, I don’t see any of these rugs. In any homes yet, there are all these stores that sell these rugs. Supposedly, I always believed that they were a little front businesses for money laundering, basically, you know, money laundering in one form or another. Some of it is really, you know, really really like more illegal than others. Some is just stay, you know, have a business is kind of a thing to say you do it, but right, so there’s varying degrees of money laundering, I guess, sort of pseudo legal, just kind of practical and then completely illegal. Like if you watch the show, that was that show called I can’t think of it right now. You know, the show I’m talking about where they’re in Missouri, and their money laundering and anyway, I saw a few of those. So how can you financial eyes your life more and get closer to the action? Well, you know, we have max Kaiser on my show a few years back, and I was listening to one of his videos his wife, Stacy’s so brilliant, love her. We need to get either Have them back on the show. Anyway, they were talking about Richard cotillion. Okay. And this is an economist I haven’t thought much about for a long, long time. You know, I, I study economics all the time. And I hadn’t thought about this guy for a while. So I’m glad they reminded me of him. Let me tell you about this guy a little bit and why this is important and what it means to us as real estate investors. So he was born and I’m looking at Wikipedia here. He was born back in 1680. And he only lived till 1734 54 years old, and he died in London. Okay, he was born in Ireland. He wrote basically one contribution to economics that was really not revered in its time. And it was kind of forgotten about for a long time because the old saying, no profit is ever revered in his own time. And I added to that idea, and I say, no prophet is ever revered in his own home. His own town, so are with his own family, right? So there you go. So you got to be from out of town, talking to strangers in a different era. And then people will revere you and respect your thoughts and opinions, right? So anyway, he wrote this essay on the nature of trade in general. And it was later considered by William Stanley Jevons to be the cradle of political economy, but again, not in its time. So he was a successful banker, and a merchant at an early age and his boss, his early boss, had introduced him to something you’ve heard me talk about many times over the years, which is john laws, Mississippi company, one of the most famous stories about money and bubbles and fiat money and inflation of all time, probably. Number two after the tulip bubble, maybe not. I don’t know. Maybe it’s Number two, but it’s a big deal. So john was Mississippi company. We’ve talked about that in the past, and cotillion got very wealthy from his investments in this. And it was a total speculative bubble. And obviously like all speculative bubbles, it blew up, right. But let’s move on here. I got a turn a couple of pages because I highlighted some things I really want to tell you about here. Because reading this whole thing would take forever. And there is a big lesson for us as real estate investors here, you’re ready. Hope you’re ready. He provided in advanced version of john Locke’s quantity theory of money focusing on relative inflation and the velocity of money. We’ve talked about these two things ad nauseum on the show, because they are extremely important. And cotillion suggested that inflation occurs gradually, and that the new supply of money has a localized effect on inflation effectively originated The concept of non neutral money. Furthermore, he posited that the original recipients of the new money enjoy higher standards of living at the expense of later recipients. Whoa, that’s brilliant.
Jason Hartman 23:21
Did you catch that? That’s important. Why is that important? What he’s saying here is that the people closest to the financialization closest to the money, get the richest. And the people furthest away from the money benefit the least. This would be another way of talking about trickle down economics, which you heard in the Reagan era a lot. And you’ve heard me talk about it. And I also, I don’t know if I coined this but maybe I did. You know, sometimes you’re not sure where an idea came from. so bad. Just do what Bill Clinton does take credit for it. Clinton would take credit, why should I? So the opposite of that, but it’s also so related, which is Trickle Up economics. So there’s trickle down economics and Trickle Up economics. In 12 years ago, I started talking about Trickle Up economics during the Great Recession. And why was I talking about that? Because what was happening then, was this interesting concept where everybody was just breaking their contracts. And I was renegotiating with our landlord, we have this gorgeous office space in Orange County, California at the time, one of several offices I had over the years, and I was renegotiating with our landlord, and I wrote him a big letter, and I said, hey, look, you got to renegotiate this lease with us. It’s a ripoff. I didn’t say that. But essentially outline that and I said, Every contract in the world is being renegotiated right now. And it’s trickling up. And what’s happening is the tenants. This was a commercial property. So it’s a little different. But the tenants renegotiate their leases with the landlord’s and everybody was doing that everybody was doing that every tenant basically was renegotiating their lease, okay, like in the whole country in the whole world. And then the landlord goes to their lender, and they say to their lender, hey, guess what my tenants are renegotiating their leases. So you got to renegotiate our deal and give us a loan modification. So you know, these were, you know, big office complex, you know, probably had 40 $50 million worth of loans on those buildings. I don’t know, maybe more, I’m not sure. And they went to their lender and said renegotiate with us. And they were a big giant, worldwide publicly traded company. They probably went to their bond holders or their bond broker and said, Hey, renegotiate with us. And so it just trickles right up. it trickles up. And it also trickles down as Reagan proved and you know, there are detractors All these systems, but no matter what, Richard can tell you talk about this theory that the more local you are to the money, the more you will be enriched by it. And why is that true? Well, because of the velocity effect the velocity of money, yes. But it’s also because everybody’s taking their cut of the pie. Everybody’s taking their handling fee on the way down. So as a real estate investor, you might be asking yourself, how do you get closer to the money? Well, you just financialized your life the same way. The central bankers, the government’s and the Wall Street crooks do it. Yes. good role models were imitating here, huh? We’re doing this all legally, of course, but it’s one of the principles they use. And one way you definitely do this is through inflation induced debt destruction. Let’s go back to that zoom cocktail party. You were talking with someone right? They were saying, Hey, you know, what are you up to nowadays? Oh, I’m investing in real estate. Oh, so you’re a landlord, huh? That’s gotta be fun. You have you have garbage disposal break yet. And they’re Of course clueless because they don’t get what you’re really doing. Because you could answer that question by saying, I’m an arbitrage er. And then they’d say, what’s that? Well, I do arbitrage deals. arbitrage Hmm. Yeah, arbitrage that’s basically, according to Jason Hartman says it’s exploiting the differences in things. That’s the Hartman simple definition. You always ask yourself compared to what? Well, if I can borrow money at this rate, and I have inflation at that rate, and I have tax benefits at that rate, and then I have rental income at that rate, and then I have all these other things that all come together in my beautiful multi dimensional asset class. I’m an arbitrage er. So who are some of the other famous arbitrage errs well, All these people that trade currencies, these hedge fund people, probably the most infamous and I’m not gonna say he’s famous because I don’t like the guy at all. But maybe the most famous arbitrage er is George Soros, you know, he essentially bankrupted the British government. Okay? You know, that’s a long complicated story. And you know, it’s just look it up. But you’re an arbitrage er, that’s what you do. As a landlord. You think you’re a landlord, you think oh, you know, the car dealership thing. So we sell cars? No, not really, you do a lot more than that you financialized in cars are just this. Well pardon the pun vehicle so that you can financialized and so you are getting to financial eyes, a lot of your investment as a real estate investor, because it has huge benefits like that. Now rich people financial is everything. But what do poor people do? Well, they do financialization. in reverse, they do a terrible job of this. They go and they, they need to be listening to Dave Ramsey. Here’s where I like Dave Ramsey, because Dave Ramsey really does help these people. But once you advance beyond this point, Dave Ramsey becomes completely clueless. So he’s good for a while, you know, get to you go to sixth grade with Dave Ramsey, maybe eighth grade ninth grade, and that’s all good. But not a high school in college, okay, in the investment world, just to use a metaphor. That’s what you do you. So the poor people do it in reverse. They go get themselves into credit card debt, they got a bunch of high interest debt, and it’s not tied to any asset that produces money. It’s tied to assets that go down in value. They get into debt, over all kinds of silly things that just don’t work. They don’t produce any income. They don’t arbitrage at all, they get reversed arbitrage by other people. You know, there’s an old saying, if you don’t have a plan for your life, you’re going to become part of somebody else’s plan. And sadly, that’s exactly what happens to the poor. They didn’t have a plan. They didn’t learn about arbitrage. They didn’t learn about how to properly financialized their life in a good way, I mean beneficial to themselves. And so they got financialized by somebody else, you’re either gonna have your plan, or you didn’t become part of someone else’s plan. That’s pretty much the way the law of the jungle works. So let me wrap up this thing on, Richard can tell you Okay, the concept of relative inflation, or a disproportionate rise in prices among different goods in an economy is known as the cantillon effect. He also considered changes in the velocity of money, quantity of exchanges made within a specific amount of time to be influential on prices, although not to the same degree as changes in the quantity of money. So there is the amount that determines things. And then there is the time in which it occurs. Because remember that time thing is part of the, you know, you’ve heard of the supply chain, that’s a term that’s used frequently, but money itself and financialization also has its own supply chain. Just the trading of the money in that financial ization is hugely important. Because if you get it sooner, you’re going to be richer than the guy that gets it last, and in our world. Fair, unfair, for better or worse. The person who gets it first is the person that’s right near the financial system right near the the fire hose. Who are they? Well, they’re jamie diamond. Lloyd Blankfein, all of these people that are in the game, they’re all the people in Congress doing their crooked deals with lobbyists. They’re all the people on wall street they are close to the fire hose. They Bobby Axelrod in the show billions. Okay. Which is a great show, by the way. Do you watch billions you need to be watching billions. It’s good anyway, be closer to it. And you know, I remember when I was 19 years old, and I started in real estate, I was going to Long Beach City College. And we couldn’t afford to send me to like a real University. And hey, I wasn’t any super student or anything, either. And didn’t have any connections know how to get scholarships or things like that, you know, that just wasn’t the world I lived in, unfortunately, or maybe worked out better, actually. But when I was 19, and I got my real estate license a couple weeks before my 20th birthday, and I went to work for this century 21 Academy on Beach Boulevard in Anaheim, California. And I remember sitting in that office, that tacky office, by the way, filled with smoke, because back then, I know you can’t even believe that people would smoke in the office. you’d walk in there. There was like a frickin cloud. Disgusting, huh? Yeah, totally disgusting. Anyway, I remember, there’d be a sales board a white board, hey, at least it wasn’t a black board. I’m not that old. It was a white board and headlines on it. And you know, people would write down their sales, they had a little bell there, they’d ring the bell and they made a sale and everybody would look over and maybe clap. Hey, and I looked at the price they put up there and that was back when real estate was a lot cheaper and pay Anaheim’s a cheap area too. And they put up the numbers and I thought, Gosh, here I am. I’m just just a kid. I’m literally a teenager. And here I am in this little tacky office. But there’s a lot of money changing hands here. There’s hundreds of thousands of dollars. And you know, someone would put up a sale like the top producer in our office was a woman named Rene. And it was like a big deal back then to make $90,000 a year and she was the big deal in the office. She was the top agent she sold like $3 million a year worth of real estate, you know, 3% 90 grand and she go in, put us sale up there and it’d be for like, $180,000 you know, $250,000 we thought that was a big one back in the day, you know, things have changed everything. Inflation, inflation, inflation, right? It’s all relative shenana when I was your age, postage stamp off the penny, and you could mail a postcard across country for one cent, and a candy bar cost a nickel. And now it’s $1. You’ve all heard that conversation. I know, I’m terrible at accents. I’m not getting a job in acting anytime soon. Don’t worry. So you know, I thought to myself, I thought, you know, even in this tacky, little dumb real estate office, there’s a lot of money changing hands, if I could just get a part of that. And I felt like I was close to it. So I had the Richard cantillon effect right there in the real estate office. And I asked you this question in your life. We talked about financial icing it so you take advantage of inflation and do step destruction And by the way, let me just back up a little bit. What I came from was working at my mother’s pioneer chicken franchise. That’s what I did right before I got my real estate license. Okay, I would work at the Pioneer chicken office in LA in this terrible area where literally my mom got held up at gunpoint several times. One time that came in and, you know, hit her over the head with a gun and you know, her head was bleeding when I rushed up there and, you know, the police were there. And they would shoot the windows out in the Pioneer chicken some morning she’d come in the windows would be shot out, you know, they just drive by and shoot at the windows and just know the glass was all on the floor. Unbelievable, right? So that’s where I worked. And the contrast was so stark in when I worked at the pioneer of chicken. I had to smile to make $2 okay to make a little tiny sale of selling a basket of chicken and maybe a pudding that went with it. And then when I got into real estate, I thought, hundreds of thousands of dollars. This is great. And I bought my first little cheap condo in Huntington Beach, California and Coventry lane. And it was like less than $100,000. I think I don’t remember the price of that deal, I gotta find that I probably actually have the paperwork from that. So I gotta find it, and just be around the money. So when you collect your rents, maybe you own 20 properties, and each of those generates 1500 dollars a month or 1200 dollars a month. That’s significant amounts of money. But that’s not what it’s about. Looking at how much debt you have on those properties. Hopefully you have a lot of cheap mortgage, because you’re arbitraging those interest rates and tax rates and tax deductions on that mortgage versus the income versus inflation. And so you are financialized in a good way. That’s great for you, you are close to the money. Richard can tell you would say that’s a great thing. So that’s the lesson for today. A little bit on Richard can tell you check them out. And if you need us reach out, we’re here to guide you every step of the way. Build your nationwide portfolio inventory is very tight. So do not rely completely on our website. You’ve got to be working with one of our investment counselors. We just had a hedge fund come in and buy 53 properties from one of our providers. So inventory got a lot tighter when that happened, that we were kind of bummed that it did because inventory is challenging, but when you’re working closely with an investment counselor to get the deals for you and source them quickly, we can definitely help and you know, this is so counterintuitive to what probably everybody thought three months ago, isn’t it four months ago, they thought the world was coming to an end, but the real estate market It is booming. The stock market is fake, but luxury home market is fake. But the necessity housing market is not fake. That’s a real human need one of the three basics food, clothing and shelter, let them rent that shelter from you so that you get the advantage of the financialization. The tenant does not get that advantage. They don’t get to be an arbitrage or at a cocktail party. Oh, where do you live? Oh, I rent a house over there. Oh, they definitely can’t say they’re an arbitrage er, but guess what, you as their landlord, you get to be an arbitrage er, so you get to be closer to the money. And they do so you get more advantage than someone downstream. That’s very important. So we’re here to guide you and help you build that nationwide portfolio. Reach out to us at Jason Hartman comm or one 800 Hartman if you’re in the US, and until tomorrow, happy investing.
Jason Hartman 39:04
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