In this Flashback Friday episode, Jason Hartman talks about the debt crisis in Greece and Socialism. He explains why Malthusianism doesn’t work. Jason advises to invest in a long term, stable rental properties to create and grow wealth.
This show is produced by the Hartman media company. For more information and links to all our great podcasts visit Hartman media.com.
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.
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 1:16
I want to take just a moment to tell you about renter’s warehouse, an award winning property management company that services over 13,000 investors with over 18,000 properties nationwide. They are the only residential property manager rated by Morningstar. Their centralized model with local staff provide trustworthy support across multiple markets. These experts track all aspects of your property and never try to profit from maintenance repairs. Plus you’ll enjoy flat rate pricing and warrantied tenants up to 18 months. Check this out for a free three month property management trial. exclusive to Jason Hartman listeners, visit renters warehouse comm slash Jason Again, that’s renters warehouse.com slash Jason. Our guest today will be Mark Kohler with kk iOS lawyers talking about some tax and asset protection strategies. He’s a CPA and an attorney been on the show a few times before. You remember him speaking at our meet the Masters events a few times over the years. So he will be here with us today as our guest. A couple things to cover before we get to mark. First of all, I want to thank our listener Mandy m from Well, the the listener name is Mandy M. Chicago. I’m assuming you’re from Chicago Mandy, I don’t know. But thank you very much for the nice five star review on the show. I love hearing Jason’s views on today’s economic climate, and he has strategies for investing around it as a current small time real estate investor. It’s priceless to hear from far more experienced successful investors, I can’t wait to grow my portfolio through his network. And Mandy, we can’t wait to help you. I’m not sure if you’re a client yet or not. But we look forward to helping you build an awesome real estate portfolio. And very much appreciate your review. And folks, if you have not reviewed the show yet, please do us a favor and put a review on iTunes, Stitcher, radio, SoundCloud, whatever, especially iTunes, we would very, very much appreciate it. And we will make every attempt to read it on the show. Gosh, some interesting things going on in the world aren’t there. There’s just so much going on. I don’t even know where to start. But Greece, wow, Greece, the epic socialist disaster. This is what happens folks when we as people expect a free ride or an easy ride, where we expect something for nothing where we expect to enslave People who have produced wealth who have worked hard, who have hopefully earned it fair and square, but many times they haven’t. I freely agree with that and admit it. When we enslave them. The businesses flee. And the government keeps making promises because it creates this dependent class of people. These people in Greece that want to retire it 47 years old or 50 years old. It’s just absurd. They won’t tolerate austerity measures. God forbid, you know, and all weekend, they basically experienced a run on the banks last weekend, you know, where people were lining up for hours and hours on and quite literally camping out at ATMs, automated teller machines to try and get the money out of the bank. Okay. is just absurd. It’s an epic disaster. This is socialism. It does not work. It never has worked anywhere in the world. It never has worked at any time in history. Okay, and please don’t say, well look at the Scandinavian countries. Those aren’t as good as they might seem. But they also have an entirely different set of circumstances. Okay, they only until recently were faced with immigration challenges, and all all sorts of things. I mean, they’ve largely lived in a bubble, okay, for many, many years. And of course, Norway is massively rich with oil. It’s just a whole different set of circumstances. It’s not America, they don’t have people fleeing poverty and oppression in Mexico at their southern border. It’s just a completely different set of circumstances. You know, it just boggles my mind. That mature, seemingly mature I mean, we all know there are many adults walking around. I’m sorry, many children walking around in adult bodies, we know this, right? So, you know, and then you know that they think the world owes them a living. They think that you can just tell the government to just spend, spend, spend, keep giving you goodies keep giving you treats, and the chickens won’t come home to roost at some point. It is a totally immature viewpoint. We’re seeing more and more evidence of this all the time that it does not work. And that, you know, we we got it as people, we’ve got to just kind of grow up and make our own way in the world. It’s up to us. It’s the government is not going to be able to take care of us. And certainly those listening to the show, see that. That’s why we’re here. That’s why we’re talking about investing. That’s why we’re talking about planning for our future. That’s why we’re talking about being responsible, so that we do not have to depend on government and we can make our own way in the world. So I want to thank Cody for sending this article over. It’s entitled in Greece. It’s not over even when the old lady faints at the ATM. It’s incredible. It’s mind boggling. And of course, it literally every stock index and stock market around the world yesterday went into a tailspin over Reese once again, defaulting on its debt obligations. In other news, Chicago now it has been rated as having America’s best hamburger. Okay. So if you were looking for a reason to come on our small group, very exclusive property tour in Chicago, and Grand Rapids and guess what, this is not confirmed yet, but I’m gonna try and do it. Okay. I am planning with our Grand Rapids, local market specialist to actually Add a half day, third day. Okay, so we want people to arrive in Chicago on July 15. And then plan on Thursday, July 16. meeting us at about 9am. We’re going to tour one of our local market specialist facilities, we’re going to meet with two local market specialists in Chicago, we’re going to look at properties with them, we’re gonna check out their operation. We’re gonna, you know, have all our meals together, the meals are on us, by the way, that’s included in the cost of the tour. The only thing you have to pay for is your transportation and your hotel. And we do not have any big formal group hotel or anything like that. This time. It’s a small group tour. So we’ll get you the hotel information and you can stay anywhere you want. You don’t need to stay at the same hotel. We’re not meeting at the hotel really or anything or simply sleeping there and then we’re going to be out in the field okay, but we will give you the hotel information once we have our rooms And we’re looking at a couple different one places really, really gorgeous right now in Chicago that we’re looking at. Then the next day, we’re going to drive to Grand Rapids together. So we’re going to spend a little time in the car together. Hey, who knows? We’re going to talk about everything under the sun, of course. But maybe we can even listen to our favorite podcast. No, you’re probably sick of that. You say? You’ve heard enough of me on the podcast. Okay. Well, we can listen to someone else’s podcast. I don’t know, maybe a good audio book, something like that. Well, maybe do a little bit of time with that. But yeah, this is gonna be an awesome tour. So the third day, the third day, kind of like Obama’s third term. You saw some advertising about that a few years ago. So the third day the local market specialist in Grand Rapids, who many of you met it meet the Masters last January. He and I are planning to head over to the draw eat Detroit. Can you imagine that the blighted Detroit area much talked about among real estate investors. It’s been a while since I’ve checked out Detroit. And you know what I figured I might as well just arrange my flight into Chicago and out of Detroit. And then this literally will be a three market tour three markets in three days. It’s like around the world in 80 days. You’re welcome to join me for that. If we do it. We haven’t totally confirmed the Detroit aspect, of course, but it would be interesting to say. So Chicago has the best burger. So now I think you really have a great reason to join us at the Chicago property tour. Okay. I want to talk to you for a moment about material facts. What is a material fact? Well, that sounds like something a lawyer would say, right? Yes, it is something a lawyer would say a material fact. It’s something that I remember learning about in real estate school. at the ripe old age of 18 years old when I was enrolled in century 21 $99 real estate school back in 1492, when Columbus sailed the ocean blue. Well, it wasn’t quite that long ago. But it was a while ago. I’ve been doing this a long time. So a material fact, what is a material fact? And why is this important? Well, you know, I’m not a lawyer, you know that I’m not a tax advisor. But my layman’s view of a material fact is this. It’s something that would influence your decision in a significant way in a make or break kind of a way. And there’s a very interesting story. And I you know, you can be the judge of this, okay, whether or not this is a material fact, when someone bought this house. So, this is from Newser, and there was litigation out of this and I just thought it was kind of an interesting Kind of an oddball story that I’ll share with you real quickly it says family fleas dream home, and it’s creepy watcher lawsuit claims previous owners hid letter from, quote the watcher unquote. A New Jersey couple says the $1.3 million dream home they bought in Westfield a year ago came with six bedrooms, a sprawling lawn. And for their three kids, I thought it said it became and with three kids, you know, folks, it’s not so easy to read stuff and talk to you and attempt. Granted, it’s only an attempt to be entertaining at the same time. So please, excuse me, that’s why when we do real narration, I actually have our professional one of our professional voiceover people do the reading. Okay, so anyway, back to the article. So it had the sprawling lawn for their three kids not didn’t come with three kids. And they didn’t know this was included, but it had a creepy stalker, who the owner say, began sending threatening letters three days after they took possession of the house. The letters signed by quote of a watcher unquote, claim the house has been the subject of my family, the watcher meaning that his family or her family for debt, why do I assume it to him? Isn’t that so unfair? That is totally unfair. And that is, you know, that’s what our world does to males. It’s unfair in so many ways, but you know, hey, both genders have their unfairnesses right. Anyway. So the watcher, what do they say here has been the subject of my family for decades the watcher says, I have been put in charge of watching and waiting for its second coming reports cbs news, Erie are still the individual who claimed have watched the house for two decades ask, have they found out what’s in the walls yet? That’s an exact quote, by the way, and says, quote, I am pleased to know your names now, and the name of the young blood you have brought to me, unquote. So imagine you move into this house and in three days you start getting these creepy letters. Now, is there a law about this? Is this a material fact? Should the prior owners have disclosed this to the buyers of the house? You be the judge? Let me share a little bit more of this, this news or article with you, okay. So and the young blood boy that would really spook me if I have kids, man, that would really freak me out. The individual also inquires about Who is sleeping in which bedrooms, quote, so I can plan better, unquote. The family says they never moved in as a result of the letters. Oh, I guess so they didn’t move in. Right. They took possession of the house, they started getting the mail out of the mailbox, I guess, but they didn’t actually move in yet, thankfully. Okay, the last of which arrived in July reports, nj.com. They’re suing the previous owners for their money back plus interest. Now, that’s another interesting point about the lawsuit. Right? Say, for example, they win this lawsuit. Should they only be entitled to their money back, which is a you know, basically a rescission of the contract, right? I’m sure the court would make them give the house back. They can’t just keep the house and have all the money back at the same time, right. They probably just do what’s called a lawsuit or a ruling for what’s known as specific performance. So you can sue another party for money, but you can also sue them to make them do something right for specific performance. So the judge might say, Look, I’m gonna, and if they win, the judge might say, Look, I’m gonna totally unravel this contract. And I’m going to put everything back to the way it was before. These people bought the house specific performance. Okay, so you know, you’re gonna just unravel this contract, put the money back where it came from in the beginning, and put the house back where it came from in the beginning. Okay. Remember, you’re listening to flashback Friday? Our new episodes are published every Monday and Wednesday. But my question is, is interest the fair settlement? Because what if during the time, they own the property, it went up in value or went down in value? What about the carrying cost on the property? What about the and here’s the important one, and this is what I talked about. All the time that it amazes me people don’t understand. It amazes me. What about the opportunity cost? every asset that you or I or anybody else owns, whether it be money, whether it be an object, whether it be a piece of real estate, whether it be a car sitting in your driveway unused, whether it be a vacation home, hopefully you didn’t buy one of those, okay? Because we only like long term stable income properties, rental properties, whatever it might be, whatever that asset might be. If you’re not using it, if it’s unused, it represents an opportunity costs. So how much is that worth? That’s, you know, something that a court would value. And, look, I mean, this happens all the time. You know, you You’ve heard my mother on the show many times, bless her heart. She is a very bright lady. She’s gotten very far in the world. But she like everybody else. I mean, she’s not immune to it, their mind turns to mush when they have equity in property. So, you know, the story, my mom has built this big, gorgeous mansion and Gulf Shores. You know, she, she loves it. She’s lived there for a few years now. And she’s been finishing the house. And, you know, it’s pretty amazing that she’s, you know, pulled that whole project off by herself, basically. And, you know, especially at her age, I mean, I’m like, Mom, wouldn’t you rather just be out enjoying life and she just kind of likes the project. And you know, I think that’s sort of good because it’s good to stay active and do things even if you are retired, right? But even my dear mother, who actually listens to the podcast, you know, it is your family never really listens to you like strangers do right. That’s a frustration that’s common to most if not all of us. She says, you know, she’s think Well, you know, maybe I should move to Houston. Maybe I should move to somewhere in Florida. And I’m like, Yeah, I think you should I think this is a great idea. You should rent a high end home. Okay, I’m telling her this. And you should use the equity from your Southern mansion to buy more income properties, and she wants to start buying a bunch more houses. And she is in line with my plan nowadays. Okay. It wasn’t the old plan that she did for so many years. But she’s, she’s in line with my plan nowadays, right? And so she wants to start buying a bunch more rental properties. And I said you should rent and you know, just do that. And she says, Jason, it cost me almost nothing to live here. All I have to do is pay my property taxes and my association fees, because the house is free and clear. And I said, Mom, are we really gonna talk about this again, we’ve had like, 1000 conversations like this You know, and I said, Look,
Jason Hartman 20:02
you have an opportunity cost, you know, what does that house worth? I don’t know. She doesn’t know either. Maybe it’s worth 2,000,002 and a half million dollar. I mean, we don’t really know. Okay, whatever it’s worth, let’s pick 2 million as a round number. Okay? If you’ve got $2 million tied up in that property, that $2 million in 20, single family detached homes, in any of our markets could pretty much earn you $20,000 per month. So that’s what it’s costing you to live in your house. If you move to Houston, and you rent a high end glorious property for eight or $10,000 per month in rent, and you take that $2 million and buy yourself 20 little single family detached homes in markets like Memphis or Atlanta or Indianapolis or you know any of the markets we recommend several of the Texas cities You know, whatever it is right? You get the idea. Okay, you would earn $20,000 from those. So you would actually be saving or earning in quotes $10,000 extra per month by doing that plan by going and paying 10,000 a month rent to rent a mansion and renting out 20 homes to somebody else for $20,000 per month. Okay. And, you know, granted, those are gross numbers. Of course, they’re not. You know, that’s not that’s not a specific analysis. It’s just a very back of the napkin rule of thumb type analysis, but it’s accurate, generally. Okay. It’s accurate, because, you know, I didn’t take into account the association fees and the property taxes on her house. Of course, all those little rental properties will have expenses. I get that completely. But yeah, really interesting. So the opportunity cost and the money that’s where I left off on the creepy watcher article. The lawsuit claims that the previous owners were received a letter from the watcher that noted there would be a new family moving into the home more than a week before the closing date, but knowingly and willfully failed to disclose it. The lawsuit ads, the plaintiffs are having trouble selling the home as interested parties once notified of the letters no longer view the property as a safe home. Westfield’s mayor says police have conducted an exhaustive investigation and left no stone unturned, but no charges have been laid. One California woman decided to prank the family who bought her dream home out from under her by the way that was another and criminal charges ensued. That’s another article that’s linked from this one. And I remember actually reading about that one A while back, I think so. Just a reminder, you’re listening to flashback Friday. Our new episodes are published every Monday and every Wednesday. So interesting stuff. So the question for you, dear listener, is that a material fact? I kind of think it is. I think if you’re getting these creepy letters from someone, you better disclose that to the new buyer. But I’m not sure there’s actually a law about something like that. Now, granted, there are laws about a whole bunch of other things. I’m not sure the watcher, you know, a creepy stalker like that is that there’s a law about that. I kind of doubt there is actually but who knows. So what do you think? Anyway, let us know. We’d love to hear from you. And you can leave a voicemail at the website, please use the voicemail function, folks. We’d love it. When you do that. We’ll play your voicemails on the air, if they’re entertaining and applicable and interesting. We won’t always play them because some of them aren’t that interesting, or they can just be answered individually sometimes, too. Okay, so go to Jason hartman.com. Look at that little send voicemail tab on your screen. It’s on the right hand side. Just click it send a little quick voicemail. It’s so easy to use, and we’d love to hear from you. Anyway, you know what? We have run long. Imagine that. I’m trying to keep these episodes at a half hour. So you know what, let me kick Mark Kohler over into the next episode. Okay, you’ll probably appreciate that. You know, I heard the average commute time in America is like 28 minutes. So I’m trying to keep these shows around a half hour. I know I don’t always do that. I totally get it. So I think Mark and I talked for about a half hour or so. You know what, we’ll just play that on the next one. I’ll do a shorter intro. But you know what, since we do have a couple of extra minutes, what can I tell you? There was another thing I wanted to tell you. Yes, there is there is there is okay. Remember, good old Jimmy Carter? Well, you know, this is one of the things that I think I talked about this before. But you know how he said or I talked about this with a guest I don’t think In an intro portion of the show, I actually talked about it. But Carter predicted that we would run out of oil by 2010. And I gotta tell you, this Malthusian concept of scarcity has really just got to go. It’s a very dangerous thing. This whole ideology is very dangerous, because what it ultimately does is it implies that people are the problem. And that we need to ultimately the only solution to the Malthusian ethic is to reduce the population. And that is a very, very scary idea, because the question has to be asked, Who gets to decide? Now? Do you think I’m nutty? for saying something like that? You think, oh, that could never happen? Whoa, it’s happened many times throughout history. Come on. Of course, it can happen. And this is a New York Times article published March 4 1977. And it says the hard truth as the Carter administration sees it is that the world’s oil supplies cannot much longer sustain the world’s increasing oil consumption. It is not true that if proper policy or is it not true that a proper policies are followed enough oil fields can be located and tapped so that the world can go on consuming oil at its present annual rate of increase of about 7% in the United States for the worst example in the world Oh yes, the evil United States the evil United States we should be self loathing if we are Americans and live in the United States because we use too many resources. We’re so evil right that’s what these people think. Okay, that’s the the leftist mouth Lucien environmental idea. And that’s why it scares me so much. The article goes on to say, world capacity to sustain such expansion will flatten out in the 1980s. If consumption then continued at the same level, and highlighted in this article, New York Times, March 4 1977, the world’s oil would disappear in the first decade of the 20th century. How wrong were these idiots? How wrong was Jimmy Carter? Right? And the article just concludes, say, oil consumption therefore has to be reduced here and throughout the world, and new energy sources have to be developed. While folks? I’m all for new energy sources. Okay, who wouldn’t be? But there’s all sorts of environmental and economic sins being created in the manufacturer of these new energy sources, the windmills The guillotines in the sky for birds, especially bald eagles. Okay, endangered birds, go to one of those windmills and go there by the base of those windmills, you’ll see all sorts of dead birds, okay, the guillotines in the sky, the blight on the landscape, the noise that they make, and they do make a lot of noise, they have a very loud hum, the use of the real estate that can’t be used for something else the solar panels that cover the ground that could be used for housing or agriculture, but housing would be evil because that would be more population. So that’s bad. You just this ideology, you got to be very careful with it. It’s it’s really something to be careful of major environmental sins in the manufacturer of solar panels. And I’m not saying all of this stuff is bad. I mean, there’s lots of environmental sins that go on with bringing oil out of the ground. But you know, we’re like drowning in oil now. And why are we drowning in oil because of new technologies. Because people, that evil idea of increasing population because people are a resource. See, I like people, I view people as a resource, their brain power, their willingness to work and contribute to the economy and expand human knowledge and increase the standard of living for everybody around the world just by trying to reach their own goals and trying to be successful. You know, selfishly. I mean, they do the world good. People are a wonderful resource. In fact, if you look at the tiny little island of Japan with virtually no natural resources, now, I know Japan has. We’ve talked about it many times it has a chair of economic problems for sure. But that notwithstanding, Japan came out of nowhere. I mean, that country was basically built on literally work ethic and intellect. Nothing else. It’s not like they had a bunch of natural resources. It wasn’t the Middle East. They had tons of oil and other natural resources. Okay? Japan, the resource was that people only. That was it. People are a great resource. So think about that. People are our tenants when we’re real estate investors, people on our team, help us, run our portfolio help us acquire properties, help us manage our properties help us finance our properties. People are a wonderful resource. So anyway, we’ll have flashback Friday. Next, then we’ll have Mark Kohler on. Sorry, I went a little long, but I hope you like my rant. I know a lot of you do, because you tell me you do. But I probably don’t hear from enough people who hate my little rants. So maybe some of you don’t, I apologize. We don’t always do We mix it up here, we mix it up. So hey, go to Jason hartman.com. Leave us a voicemail message. Join us for our small group property tour. And we’ll talk to you on the next episode. Thanks again for listening.
I’ve never really thought of Jason as subversive, but I just found out that’s what Wall Street considers him to be.
Really now. How is that possible at all?
Simple. Wall Street believes that real estate investors are dangerous to their schemes? Because the dirty truth about income property is that it actually works in real life.
I know I mean, how many people do you know not including insiders who created wealth with stocks, bonds and mutual funds? those options are for people who only want to pretend they’re getting ahead.
Stocks and other non direct traded assets are a losing game for most people. The typical scenario is you make a little you lose a little and spin your wheels for decades.
That’s because the corporate crooks running the stock and bond investing game will always See to it that they win. This means unless you’re one of them you will not win.
And unluckily for Wallstreet Jason has a unique ability to make the everyday person understand investing the way it should be. He shows them a world where anything less than a 26% annual return is disappointing.
Yep. And that’s why Jason offers a one book set on creating wealth that comes with 20 digital download audios. He shows us how we can be excited about these scary times and exploit the incredible opportunities this present economy has afforded us.
We can pick local markets, untouched by the economic downturn, exploit packaged commodities investing and achieve exceptional returns safely and securely.
I like how he teaches you how to protect the equity in your home before it disappears and how to outsource your debt obligations to the government.
And this set of advanced strategies for wealth creation is being offered for only $197 to get you’re creating wealth encyclopedia book one complete with over 20 hours of audio, go to Jason hartman.com forward slash store. If you want to be able to sit back and collect checks every month, just like a banker Jason’s creating wealth encyclopedia series is for you.
This show is produced by the Hartman media company All rights reserved for distribution or publication rights and media interviews, please visit www dot Hartman media.com or email media at Hartman media.com. Nothing on this show should be considered specific personal or professional advice. Please consult an appropriate tax legal real estate or business professional for individualized advice. opinions of guests are their own and the host is acting on behalf of Platinum properties investor network, Inc. Express Sydney. Thank you so much for listening.
Jason Hartman 34:01
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.