On this Flash Back Friday episode, Jason Hartman starts begins the show with attorney Scott. They discuss the Profits in Paradise event where Scott will be speaking about asset protection. They look at the benefits of Series LLC and give tips on how to protect assets. To end the show, Jason discusses wage growth in the US and connects it to trade wars and interest rates.

Announcer 0:00
Welcome to this week’s edition of flashback Friday, your opportunity to get some good review by listening to episodes from the past that Jason is hand picked to help you today in the present and propel you into the future. Enjoy.

Investor 0:13
Well I was wonder real estate I just didn’t want to deal with tenants and all the phone calls so I just never got into into what the market really went down in 2008 that’s when I started listening to radio and I heard you on radio. And that’s what I decide to do it because I your method works with where I have to deal with tenants and, and, and, you know, issues that come up even though I do deal with it was not the same.

Announcer 0:41
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 genius You in 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 1:32
Greetings listeners from around the world. And thank you so much for joining me. This is Episode 1057, Episode 1057. And this is your host, Jason Hartman. As we talk about the complete solution for real estate investors. One important part of the equation is asset planning and asset protection and also estate planning. No one wants to think about that too much usually, but that’s part of the game. And you know, over the years I have had so Many questions about asset planning, asset protection, and how we do it. And all of the different promoters out there who are making these insane, frankly, promises sometimes are running these Mills where they’re just selling you a lot of stuff you don’t need sometimes. I met up with an attorney based in Texas who has some good new strategies. Now we’ve had many great attorneys on the show over the years, and we’ve had many speak at our events. I just wanted to bring you a fresh perspective because that’s what this is today. And so for the intro portion, I’ve got Scott joining me Scott, welcome. How are you?

Scott 2:39
Jason? It is fantastic to be here. I’m so excited to be able to share with you guys today, just really opening up and sharing. Here’s the really best information that I’ve been able to come across as an attorney investor for over eight plus years, and servicing over 1500 clients. I’ve got to aggregate a ton of information from investors all over the country in every different asset class. And I can really share that with everybody, you know, just wherever we want to go with sharing that I’m happy to be an open book.

Jason Hartman 3:06
Yeah, Good stuff, good stuff. Well, I find that, you know, with the thousands of clients we’ve had over the years, we learn so much from our parents. And it’s our job to sort of gather in aggregate all that information that we learned from our clients, and then share it back on the podcast and at our live events, and our conferences so that people can learn from our clients experience as well, you know, as well as my own, of course, my trials and tribulations and they’re certainly fair share with them. You are speaking at our profits in paradise event in Hawaii, and we’re looking forward to having you there. So thanks for joining us. Now you’ve got some fresh perspectives on the asset protection game. So tell us a little bit about your ideas and approach to this and especially the series LLC. Now I know some lawyers say they don’t like the series, LLC concept. But first let’s talk about what is a series LLC?

Scott 4:04
Well a series LLC is you can form it up number 12 different states, it’s a parent series LLC that you file. So it’s one company with one Ei in number, it’s one filing. But what makes the series LLC special is that it acts like a parent child structure. So you can create an infinite number of child series of the parents. So you’ll create a parent company, and it can create its first child that’ll be called child series. A second child is called child series be the each child acts just like an individual LLC for liability purposes. It can have its own operating agreement, its own Ei n numbers, its own completely different members if you want to. But for most real estate investors, what it allows you to accomplish is an infinitely scalable company that allows you to have the maximum protections under the law without costing you anything as you grow and without complicating your operations. So it’s really the ideal solution for people that are owning multiple assets. And there is a lot of what I would almost called misinformation, right? It’s really wrong legal reasoning from attorneys that have said, Well, we don’t really know for sure how things will play out. It’s really because they don’t understand how litigation really works and how the law is actually made to be able to know what is strong and what is weak. And I do because I was a litigator for two years, all I did was Sue major insurance companies that denied claims for people that were owed to them, and getting that money back from people. And when I left that I worked exclusively with real estate investors over the last four plus years just on asset protection, knowing how the litigation game is played, and knowing exactly how these things really play out in the court system to be able to come up with the strategies I used today. You know,

Jason Hartman 5:40
Scott, I’m glad you mentioned that, you know, I sued an insurance company once I probably should have sued a few of them, but I don’t have the time. Interestingly, asset protection, what I have found over the years, I mean, I’m approaching nearly 10,000 real estate transactions I I’m going to say I may well be the most experienced person in my niche over over three decades of doing this, and my different companies close to 10,000 deals. And you know, during that time, I’ve never been sued by a tenant. I’ve never been sued by a client. Okay? And the liability doesn’t come from where you think it comes. And that’s what’s the interesting like, I thought, Oh, well, a customer could sue me, a tenant consume me, they’ll slip and fall on a banana peel in my head. One of my houses never happened. Okay, never happened. But one time, I had some liability created when I actually sued an insurance company for bad faith. And my lawyer just disappeared. Now I filed a bar complaint against the attorney for disappearing. But he didn’t respond to the discovery what’s called discovery in the case and the judge sanctioned me because my lawyer disappeared. It’s shocking how important your lawyer can be. Your lawyer can really get you into trouble if they don’t do their job. Right. And so, yeah, I had to pay thousands of dollars, because my lawyer basically disappeared. So liability comes from you can be the plaintiff and create liability for yourself, not the defendant, you know, asset protection can help and things like that, right.

Scott 7:20
100% really the best asset protection that you can get actually defeats lawsuits before they even start. Right. And it really goes down to saying like, you know, what do people actually think liability where it comes from, right? The number one people think that think they’re okay, because I, hey, I have insurance. And that’s enough, I’m totally protected. Which insurance is extremely important. I have great insurance and all my properties. I’m personally invested in over 10 different states at any given time, and just about every single asset class, I’m very well insured. But one thing I’ve known time and time again, from my litigation experience is and if you even ask your friends that have been involved in lawsuits, that the truth doesn’t matter at all. Like lawsuits are not about to show you

Jason Hartman 7:58
not even close. Like these to say about Elvis Presley, the truth has left the building.

Scott 8:04
Yeah, 100% of you know,

Jason Hartman 8:06
going into court has nothing to do with the truth. It’s, it’s ridiculous. It’s totally ridiculous. Yeah,

Scott 8:10
it’s just not about the truth. It’s not even what some people think is like, Oh, it’s actually about like the law and how you can twist the facts to me what it is. And I say, Okay, well, that’s getting it that’s approaching what things are really happening. But the reality of the situation, what happens with lawsuits, it’s about information and leverage. And that says why anonymity and in hiding what you own hiding that you even have companies to make it look like you don’t own anything becomes so important. Because if it looks like you don’t own anything, the information they get is that you’re not a good target. There’s nothing for them to say, Okay, well, this is somebody I want to come after. So it really comes down to the information that they can grab about you and what is the leverage they can exert on you to make you pay. And that’s really what asset protection is doing is is giving you a strong defense on the front end of it, limiting the amount of information so I think you’re not a good target and if they do try to protect See you. It’s incredibly expensive and very difficult.

Jason Hartman 9:03
Okay, so one thing that people really just don’t realize, and it took me a long time to get this, in the world of asset planning is the difference between the internal threat and the external threat. So in Hawaii, you’re going to talk about that. And you’re going to talk more about this series, LLC. But let me just ask you, you know, why do some lawyers say they don’t like the series LLC, I sort of wonder if they’re being really genuine about that. Or they just don’t know how it works, or they think it’s more work? I really don’t know. I mean, you know, they just told me sometimes they don’t like it.

Scott 9:37
I think you’re right. Jason, I do hear a lot of attorneys say that I think there’s a good amount of attorneys that are just making money. And so they don’t want to have to learn what’s new, right? Like, that’s probably true at every single industry that’s ever existed, that people are entrenched with one way of doing things don’t want to change to a new way. And a series LLC isn’t new. It’s been around for over 20 years. It’s been involved in thousands of lawsuits. Nobody is actually challenged. It during that time of the actual structure itself, and in those are the people that would be most incentivized to, because if they can challenge that they can get a big payday. It’s like, Okay, why is nobody challenging and must be that it’s very strong, and other attorneys just don’t get that, right. They don’t understand that when there’s a clear law like there is for series LLC, there’s nothing to interpret. So there’s nothing to create a court case around that to create the case law that they’re saying that they want. So they really just don’t understand the way the law really works. And I can explain a lot more about that, and the nitty gritty of what lies behind all of this, you know, when we’re there in Hawaii, I’m really looking forward to sharing, you know, to really going in depth with everybody, and I’m going to be there for the full time. So it’s not even just the time I’m going to be speaking. I’m going to be there and available to really get into a number of issues with people you know, no matter what they’re doing, and I can’t wait to share that. Everybody.

Jason Hartman 10:50
Good stuff. And I believe you’re even joining us for our venture Alliance mastermind event in Hawaii after the conference,

Scott 10:55
right? You are not going to get me out of Hawaii. I’m going to be there. Gonna be throwing up a tent on the beach. I’ll probably end up doing the hotel You know, this time but, but I actually hiked the Nepali trail when I started kawhi Hawaii a couple of years ago and actually was out on the beaches of there. I love that place. And I can’t wait to go back and it’ll be my first time going back and, and having a chance to just really hang out and enjoy. You know, just, it’s just a beautiful place and what amazing place to be. I think you told me earlier that the happiest state in the country right now.

Jason Hartman 11:24
Yeah, it just got voted. The happiest State of the Union is Hawaii. So you know, these are this is the thing folks, I always talk about, you know, live in a place with a low tax burden or ideally no tax burden for state income tax, and vacation in places like Hawaii. Now, this is, you know, many of the people coming or bringing their families and making a whole vacation out of it. But certainly it’s going to be pretty great to have two days of learning at our profits in paradise conference in Hawaii. And then if you’re joining us for the venture Alliance mastermind retreat in Hawaii afterwards, you know, you got four full days of masterminding Real estate investors and networking and all that kind of stuff. So it’s gonna be great. So it’s going to be good to have you there. I’m looking forward to a fresh perspective. We’ve had some other great asset planning and asset protection and estate planning people speak at our events over the years, Garrett Sutton, one of the rich dad advisors and, and many others. Give us a little hint about anything more you want to talk about or you know, things that people will learn actionable stuff after conference in Hawaii,

Scott 12:26
what we’re going to be talking about is a couple of key concepts. The first thing we’re going to talk about is where does your liability come from? As a real estate investor and in business, that’s number one thing you have to understand because with liability is what triggers the lawsuits. The second thing we’re going to talk about is how do you hide all your assets domestically? How do you do that efficiently, both in terms of like your operational time that you have to spend doing it as well as the number of companies you need? The series LLC is going to do that for you in combination with what we used to accomplish anonymity which is trust. Some people use Wyoming LLCs I totally respect that. I do. Just choose not to pay to do something that I can do for free with using a trust. The third thing we’re going to be learning about is saying how do we separate all of our assets, which is where we want to have in a vault where nobody can go to it and touch it from all the operations of our company to have all the liability compartmentalised through that and the fourth thing that we’re going to be talking about is how do we incorporate our estate plan with all this and the tax saving strategies, we can be using the solo 401k and self directed IRAs and the other pieces that really take us to the next level, as real estate investors, while accomplishing what’s really most important for us at the end of the day, is not complicating our lives, because most of us are, what are trying to achieve is fight it right. Because I think at the end of the day isn’t what we want as a real estate investor is saying, I’m doing this so that way I can leave my job or I can retire I can have the financial and time freedom to do what I want. It doesn’t make sense to create a system that makes you have another job called managing your real estate.

Jason Hartman 13:57
Let me just speak to that for a moment. Okay, so So, what happens with a lot of these attorneys and promoters of these various asset protection vehicles, and this is listen, learn from my mistakes folks, okay, learn from my mistakes as my life has become complicated. You know, it feels like I spent the first half of my adult life my or my career so far. Okay, creating wealth, and I created a lot of wealth and then became a target for people, right that, you know, unlike competitors, and just sleazy people out there, and now, it’s like, I’m spending the second half of the career, protecting my wealth and managing it. And all of these entities require attention. You know, this stuff gets pretty complicated pretty quickly. And one of the things I like about your strategy is that you have people set up their entities in states that don’t require annual filing fees. There’s no cost to maintain the entity unless it gets huge if it gets really big. You gotta pay something, you know, every government’s gonna have their hand out if, if you’ve got something big going on. But that’s it’s good that you’re mindful of that strategy, because managing all these entities can get really complicated. And it seems from your approach, and what we’ve talked about over the last several days is that you’ve really simplified and streamline this process. So I like that.

Scott 15:21
I think I have, I think what we really accomplished here is because of an investor for so long, I mean, over eight years, I bought my first property as a commercial property while I was in law school, and ran a transmission auto repair company that was inside of the building while I was going to law school full time and working for the DA. And then I’ve been a real estate investor since then, I’ve been working with so many real estate investors across the country over 1500 clients now with that, what that’s given me is a unique perspective to be able to say what are the greatest efficiencies we can build in both in terms of cost annual maintenance, upfront costs and operational expenses, like what does it actually time cost? Is it take to manage these things, to really come up with something that I don’t think is just an edge a little bit better than what everybody else is doing right now. I think it’s five to 10 times better from what it really accomplishes, because it’s, I’ve looked at every angle of this to be able to say, How can we maximize all of the benefits and every single category, and that’s going to be talking about in the event is really opening up the kimono, so to speak, and showing everybody how it works, just like I do, actually, every day with attorneys and CPAs throughout the country. I mean, my the system that I use for all of my clients, I share openly with everybody knowing that I’m happy if everybody wants to adopt it To tell you the truth, because it would actually be so beneficial for every real estate investor out there.

Jason Hartman 16:43
Good stuff. Good stuff. Well, hey, we’ll look forward to seeing you in Hawaii Scott. It’s going to be a great time. Be sure everybody who hasn’t registered yet. We do have some space left still, or almost to a little less than two months away. Go to Jason Hartman calm and you can see Scott there and you One of the great things about our live events is it’s not just you giving the speech, the presentation from stage, you know, with your visual aids and all that stuff. But it’s the fact that people can sit down with you at lunch at dinner at breakfast, and talk about their own personal situations. And, hey, I’m sure your hourly rate is pretty high. But pure, they kind of get it for free, don’t just through network x.

Scott 17:24
Yeah, I’m at the level of now, Jason is I don’t have an hourly rate anymore. Usually can’t buy my time. It’s usually after you decide that I want to spend it with you. And that’s what I’m looking forward to with the investors that you have there is to be able to say, Hey, listen, guys, here’s an opportunity that I’m going to make myself open and available to answer all of your questions that you have there. And you can really get to know me and be able to get some knowledge that I try to distribute right now through podcasts and all through the website that we have, but it’s a great opportunity, I think, for everybody to really get some firsthand in depth knowledge from an investor in attorney.

Jason Hartman 17:55
All right, good stuff. Well, hey, we’ll leave it there. I’ve got to get to the rest of the show. But hey, hello. Haha. We’ll look forward to seeing you in Hawaii Scott, and thanks for joining us for the intro portion today.

Scott 18:05
Aloha brother be good.

Jason Hartman 18:13
Well, I hope you enjoyed that segment on asset protection. You know, that is a question we get all the time all the time asset protection. But let me tell you here is a new asset protection strategy I have learned now of course, you’ll hear the official stuff at our event in Hawaii profits in paradise when Scott talks about that, but guess what, I have a new strategy for you. And it’s kind of funny, it’d be funny if it wasn’t so sad. Here’s what you need to do. You need to expose bad people in business people who are ripping investors off and then you will gain a internet troll and they will tell everybody you are broke. That is the ultimate asset protection because Everybody thinks you’re broke. Nobody will bother to see you. So there you go. Yes. The first part. Remember, really, that is a real lesson. By the way, the first part of asset protection is financial privacy, financial privacy. So if people don’t know what you have, or where you have it, you know, maybe they know what you have, but they don’t know where you have it or how you keep it. That is part of the asset protection strategy, for sure, for sure. So hey, let’s talk about a few things here. And I look forward to seeing you all in Hawaii. So first off, good news on the economy once more median household income, Rose almost 2% in 2017, but as always, it was an equally distributed now got the Wall Street Journal here. This was a hot topic in the last presidential election, a very hot topic. Now. You heard me talk about how it rolls off. Almost 2% this hasn’t happened for years. I mean, Americans have not had a real dollar. Of course they’ve had nominal dollar wage increases, but they have not had a real dollar wage increase in decades decades. many would argue since 1977. Where were you in? 1977? Yes, during the Jimmy Carter era, some of you listening weren’t even born yet. In fact, you weren’t even an idea yet. But many of us were around back in 1977. But okay, so this real dollar wage increase has happened. It is wonderful news. The economy is most certainly doing amazing things right now, with nearly full employment and actual real dollar wage increases. But guess what, guess which particular demographic group a hot topic demographic group in the last presidential election Which group Do you think had a really big pay increase?

Jason Hartman 21:06
Hispanic households had income climb by 3.7% to $50,486, adjusted for inflation, that easily outpaced the 1.8% increase for all households according to census data. And here we were hearing about how Trump doesn’t like Hispanics, right? And guess what? Hispanic households had a real dollar wage increase of well over double what every other household had. Now that is pretty amazing. Pretty amazing. Pretty amazing. Okay, so what about the areas where household income grew the most, right? Where did it grow the most? And where did it grow the least first before I go in This, how meaningful is this anyway? Is it even meaningful? what I’m about to say? Well, it depends. It depends. It depends. Why does it depend? Well, of course, because it relates to the cost of living in those areas, and mostly the cost of housing because housing is the biggest component of living expense. By the way, if I haven’t shared this idea before, I want to share an idea with you. I may have shared it but at the risk of repeating myself, Well, I don’t know if I’ve shared this with you. Here it is. You ready for this? This is good. You’re gonna like this landlords. The vast majority of you listening are real estate investors and landlords. I know there are some of you listening who want to get started who haven’t done it yet, and are waiting on the sidelines. while of course you know, life is not a spectator sport. You gotta jump in and learn by doing that. It is certainly the most effective learning All but here’s the idea. And I think you’ll like this idea. Remember, in the world of money, there are various ways we can make money into that are often talked about. One mostly is OPMOP. m standing for other people’s money, other people’s money is OPM. And then there’s another one, o p e, other people’s efforts, other people’s efforts. Now commonly people think of these things in terms and scenarios, right? They think OPM is really good because if you can borrow money for raise money as equity and some venture a real estate deal, a business whatever, then you can use other people’s money to make more money. Now, income property is certainly very, very friendly to this concept, because income property is the most debt friendly asset class in America. Okay, you can rate A lot of debt against income property. And it’s a very good low cost debt. In fact, it’s definitely the most desirable debt out there. If, if you are not part of the federal reserve banking system, then you even get better debt. But barring that, and I have a feeling none of you are part of that system. So the second best thing is real estate. Okay, so that’s OPM, right? We all get the idea of leverage. And then of course, those of you listening to my show, get the more advanced idea that you didn’t hear anywhere else. You only heard it from yours truly, because Yours truly, actually has some original ideas on like copycats out there, but hey, I was a copycat once to when I was just starting out when I was in my early 20s. What did I know? You know, you have to copy someone, we all stand on somebody else’s shoulders. I would just appreciate it once in a while. If those who are standing on my shoulders would say hey, thanks and give me attribution but instead They just go out and steal my ideas. And that’s annoying. Okay, enough of my griping and ranting at the risk of being on a tangent here. So OPM, we get it, right. Leverage simple concept, inflation induced debt destruction, the more advanced concept that I’ve shared with many times. Now, what about Op Op? Right other people’s efforts? Well think about this. Since housing cost is the largest cost for the vast majority of people, the largest percentage of their income goes to housing costs. Now, you know, you might argue that it’s taxes. But again, that all depends on what your income is and your tax structure. So let’s just talk about it on a non tax perspective. We’ll just talk about housing, you know, typically for renters, housing cost is 33 to 40% of their income might even be a little more that could get a little dangerous if it’s more than that. And that is the rent to income right? ratio, right. So if you think about it, your tenants, they work all month long. So say they work 30 days in a month. Well think about this. If you owned a business and you employed them and you had to manage them, and you could hire them for less income than they generate, hopefully that’s the equation Every business has to live by, or it’s going to fail pretty quickly, then that would be a pretty good deal. But you would have to manage them and pay a lot of attention to managing them and managing the business, which is very complex. Obviously, businesses have a lot of moving parts. That’s why income property is so much simpler than having a business, you would get maybe double or triple what they cost, right. That’s the typical thing. Or maybe you would get more than that, I don’t know depends on the business and how automated it is and so forth, right? But you have your tenants working up to maybe 13 or 14 days of every month. They’re working for you because They’re paying you between 10 and maybe 14 days a month, right? They’re paying you 33 to 40% or maybe even a little more of their income every month toward rent. They’re working for you, O P, other people’s efforts, other people’s efforts, pretty phenomenal equation, and then combine the other multi dimensional characteristics of income property along with that, and hey, you have a pretty awesome, awesome investment there don’t yet I know and sometimes you get discouraged because you have problems. I know we all have problems, but the problems are little easier to cope with when you have such a resilient investment. It’s very resilient income property. wonderful thing. Okay. So where do the incomes rise the most and where did they rise the least? Well, the most was San Diego 5.4%, Richmond, Virginia 5.3% San Jose 4.6 Denver 4.4 Nashville 4.3 Riverside, California, Inland Empire 4.3 los angeles 4%, Sacramento, 3.8, Phoenix, 3.7, Columbus, Ohio 3.6. Does it matter? Well, maybe. Here’s why. In all of those expensive non linear cyclical markets that I mentioned, places like San Diego, Richmond, San Jose, Los Angeles, Sacramento, right, all those markets, those markets, it probably doesn’t matter, because the housing cost is so out of sync with the rent to income ratios. See, I’m not talking about rent to value ratios. I’m thinking from the tenants perspective now, rent to income ratio, right. And then the other markets mentioned, our hybrid markets, right, Denver, Nashville, Nashville could be considered a hybrid hybrid market. You know, these here I’m harkening back to what I talked about all the time that three types of markets, linear, cyclical and hybrid, the only linear market on that list is Columbus, Ohio. So a 3.6% increase in income in household income in a place like Columbus, Ohio bodes pretty well. That’s pretty good. Okay, where did they decline? Now this is interesting. And remember, these are just broad statistics. So take them with a grain of salt like you always have to write. But Raleigh, North Carolina actually had a slight decline of point 8% San Antonio, Texas point 9% just a minor decline in income. Baltimore, Cleveland, Hartford, Hartford had the biggest decline 3.6% decline. So that’s what’s going on in Hartford. I don’t know don’t know much about Hartford, Connecticut, but there is an insurance company named after that place. Okay. So just wanted to share that with you as we wrap it up here today, because we already you know, we’re doing an upside down show today, right. We have the intro then we had Jason Hartman as the guest. It’s kind of odd that we do that. We’ve only done A couple of times before over the years, so a couple of things, you know, the trade tensions are going on. You hear about them in the media all the time. They always try to make them reflect negatively on Trump. You know, maybe some extent they’re right. It’s not completely false. I mean, it’s complicated, right? It’s complicated. They are keeping mortgage rates low though these trade tensions, mortgage rates would be probably higher. If it wasn’t for the trade war going on. younger Americans are waiting longer to get married. According to CNBC, however, marrying later means they could have more money for home buying and more money for home renting. probably true. So we’ll see how that trend plays out. You know, think about it. We keep thinking of these millennials as young people. Do you know, the oldest Millennials are almost 40. Hey, 40 is still young. But you get the idea, right? These aren’t kids anymore, folks. Okay, they’re definitely growing up. Okay. They’re approaching 40 years old. So we got to start talking about somebody else. And that’s going to be Gen Z. Gen Z is the Generation Z is going to be the next cohort moving up, that is going to have all kinds of influence. I mean, you know, the millennials are like moving right toward what Harry dent who’s been on the show several times says is the highest spending and earning points in the mid 40s, right? Where people spend the most end earning the most that has a very significant impact on the economy, on housing decisions on all sorts of things. But again, that’s the traditional thing. We’ll see if it holds to be true with the millennials when they reach that age, and then much later Gen Z. Now when Gen Z reaches that age will probably be on episode 17,221. It’ll be a while but I’ll be here. And I hope you will be too. Okay. So mortgage rates have moved up a bit. Purchase applications were actually up by 1%. Over the prior week. They were up 4% over last year, you can see how that theory that I’ve talked about is actually happening in practice. It’s not a theory because I’ve witnessed it many times over my many decades in the business, when rates go up, it has the opposite effect of what most people think, at least initially, where it gets people to get off the fence and make decisions they otherwise wouldn’t make. So that’s definitely what we’re seeing. Okay, home sales are not lingering on the market for long or homes for sale, I should say, not lingering for long properties typically sold in 27 days shorter than the 30 day median number of days on market or do em days on market from a year ago. So it’s actually the statistical number is that homes are selling now three days faster than they did a year ago. Again, that’s a broad swath all prices all markets but it does give you an indicator of what’s going on. So inventory is still in very low supply. By the way, if you’re listening and You have inventory of investment properties for us, and you would like to sell them through our network. Reach out to us at Jason hartman.com. And let us know a few of you did already. So we’d love to hear from you and talk to you about doing some business together. Okay, the Fed meets next week for their FOMC, the Federal Open Market Committee meeting and they’re expected to raise rates again, but they don’t think this will affect mortgage rates. Remember, the Fed does not directly influence mortgage rates. It’s only an indirect influence, but still, obviously an influence. Central Banks overseas kept rates unchanged since many investors buy US Treasuries and bonds. This helps keep rates low. So again, another sign that rates are artificially a little lower than they might otherwise be, because of what’s going on with Tariffs and Trade wars and all that kind of stuff. Okay. I think that’s all I really have to say on kind of some general just Quick economic sound bites there. Join us in Hawaii. We’re looking forward to seeing you there. It’s going to be an awesome, awesome trip. Again, we’ve got our two day profits and paradise conference. And by the way, we’ve been updating the website on that. So if you want to see that go to Jason Hartman calm we’ve got a really slick new video, which was neat. We will look forward to seeing you that and or the venture Alliance event in Hawaii immediately following that two day conference. Jason Hartman calm there. And then if you have any questions or comments for me about the show, please go to Jason Hartman comm slash ask and I will be glad to address those. Thanks for listening and happy investing will talk to you in a couple of days.

Jason Hartman 34:46
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