In this solo episode, Jason Hartman talks about the recent US election which may bring inflationary pressure to the economy and the effect of globalization on the cost of goods. He then discusses protectionist trade policy, open trade borders, and if one million dollars is still enough to last a lifetime. Lastly, he gives a summary of his litigation with Results Property Management and plays an audio representation of the “Spot a Property Management Rip-off” video.
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 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. Real estate investors.
Jason Hartman 1:03
Welcome to the creating wealth Show episode number 759 759. This is your host, Jason Hartman, thank you so much for joining me today listeners from around the world in 164 countries, we’re glad and grateful that you are with us, and that you are spreading the good word about the show where we endeavor to keep you up to date on the latest and greatest in the real estate investing field. So today, I want to talk to you about a couple of things. And it will just be yours truly with you here today. And one, if not two videos that I’m going to play the audio track from, that I think will be very interesting and educational and since the big election here in the US which was really in historic election by any sense of the word and I’m not making a value judgment good or bad on that? I’m just saying it was historic. But I have been interviewing people like crazy two of them today, one yesterday, all of these episodes will be coming up for you on the show in the future experts from real estate economics, institutional real estate, you know, the big guys that are playing the big, big game with insurance companies and super super high end properties and so forth, and getting their opinions on what a Trump administration and a new Congress means to us as investors what it means to the real estate market, what it means to the economy overall. And I can tell you that it is pretty much in line with my thinking that a Trump administration means some inflationary pressure. Now it’s interesting to look at this because Normally, one would say that a democratic administration is inflationary because democrats tend to spend more and create more debt and more, more spending and that is inflationary. And I agree with that. That is certainly true. There’s no question that over time, that has to be inflationary. And we have been somehow defying gravity in the US for a while, where that rule hasn’t really seemed to, to come home to roost, if you will. However, the interesting thing about Trump is, first of all, nobody really knows him that well, you know, in terms of how he would govern. We certainly know him from his his celebrity and his books and his apprentice TV show and he has bombastic really ridiculous remarks and you know, the way he plays the media and so forth. We all know him That way and we’ve known him for decades that way. But what we don’t know is how we will govern. People say he’s a spender that he’s going to spend a lot. He’s got this this trillion dollar infrastructure initiative that he’s talking about, that would be inflationary on a couple sides of it. Number one, it creates more debt. But number two creates more jobs, right. Initially, it creates jobs and if there are more people employed at higher wages while those wages trickle through the economy, and those people spend, and the classic definition of inflation is a higher supply of dollars or any unit of currency really doesn’t have to be $1. Could be a euro could be anything. Could be a Swiss franc, could be Japanese yen doesn’t matter. But any EU unit of currency when you have more of those chasing a limited supply of goods and services and that begs the Question, is the supply of goods and services ever limited? Well, of course it isn’t. But initially there are constraints. There are certainly constraints on natural resources, and things like that, right. So So we know that and the supply initially until the manufacturers of goods and services until they ramp up and find a way to provide more goods and services. That is the inflection point where you get inflationary pressure. But the interesting thing about a Trump administration is that regardless of the debt, and regardless of the jobs now, certainly Obama and bush put us into lots and lots of debt, no one would deny that. But regardless of those classical things that would be considered inflationary. The wildcard here is something we haven’t had in a long time. And that is protectionist trade policy. And I’ve talked about that on prior episodes, of course, and that will create inflationary pressure, of course. Because if if we Institute tariffs and those don’t have to be direct tariffs, by the way, you know, you can Institute things in all sorts of subtle ways that constrains supply, or makes overseas manufacturers and companies pay a premium to access the US market, right. The biggest economy in the world is, of course, the US economy, admittedly built on a house of cards. But, you know, frankly, so is every other economy in the world. So it’s, it’s, you know, apples to apples, largely not completely, but largely it is. And so, as you see this happen, that would increase the price of your your next gadget right. You’re Your clothing, I am constantly amazed really, at how cheap everything is compared to what it cost in the 80s and the 90s. And even the early 2000s, as as globalization has occurred, the price of everything has just plummeted. It is plummeted. And you know, I’m pretty much a free market guy. But when you have trade agreements in and trade is super complicated part of the economy unders understand that for sure. And I do not want to hold myself out as any sort of expert on this because it is it is very complicated. The current accounts scenario between countries is a really, really complex, very multifaceted issue. But you can’t really have free trade when you have a very very unlevel playing field. So in the US when companies have to abide by it Massive regulatory burdens whether they beat OSHA minimum wage, a whole host of labor laws, things get complicated. And is it fair to just have completely open borders? As far as trade goes with countries like Mexico and China and Vietnam and whomever else? You know, just name them? It doesn’t doesn’t matter, right, because virtually all of these countries except the Western European countries have very low regulatory burdens compared to US companies. And so that is the question it begs the question of, can that ever be fair and equal? Well, certainly it could. If those countries evolve and create a more regulated environment in their their own homes where they have higher minimum wages and stricter labor laws, And stricter environmental laws. I didn’t even mention environmental laws, of course, that’s a huge factor. When all these things come into play, well, then you could have completely open trade with no restrictions, right? Because in theory, everybody would be on a level playing field. But we’re so far away from that, that it’s just, you know, I don’t think all these free trade people, you know, that’s not free trade because the, the playing field is not the least bit level, it’s not even close to level. So interesting thing in Business Insider, an interesting article here, I just want to share it with you. And it’s about how much is a million dollars. And if we are going to see more inflation, which I think is entirely possible. It’s pretty interesting. It says $1 million, will be worth a lot less in the future. And this is a visual capitalist article, and I believe we had The founder or one of the people from visual capitalist on the show, they do all sorts of really cool infographics and you can subscribe and I used to subscribe and get their email every morning with a new infographic. And it was pretty interesting. So this one is really about inflation because it says how much as a million dollars is it enough to last a lifetime? And yet, here’s a couple of interesting things to take a look at. Right? Did you know that 1 million inches is only 15.7 miles? $1 million worth of $100 bills? How much does that weigh? Well, it weighs 22 pounds, 1 million seconds. One 1002 1001 million of those is 11 days. Okay? And 1 million minutes is 1.9 years and 1 million grains of salt is a gallon It’ll fit in a one gallon jug. Okay. And as you probably know, a gallon when it’s liquid, or at least when it’s water, because I guess liquids do have different actual weights is just over eight pounds, right? Or no, it’s 128 ounces. That’d be exactly eight pounds, I think. Right? So that is a reference point. Well, millennials, okay, so we look at the millennial population, the largest demographic cohort in American history, and we look at them. And on this visual capitalist chart, it says for millennials who have an estimated 40 years until retirement, which by the way, all of that’s going to change. We all know that’s going to change, right? But this is, you know, the typical old fashioned view of things is $1 billion, enough to retire. Well, if inflation averages just 3% a year $1 million will have the same spending power as $306,000 today, so it will be hacked. down to less than one third of what it is now. And the likelihood is real inflation will be a lot higher than 3%. Okay, 9% of the households in the US are millionaires. Now that’s households, not people, by the way, it’s household wealth, not per person, per capita. Okay, and 70% of millionaires will lose their wealth by the second generation, and 90% will lose it by the third generation. So just some interesting little pieces of trivia here. Let me give you a couple more from this fantastic, visual capitalist chart that’s in the Business Insider article 60% of individuals with over $1.5 million saved envision working in some form for as long as they can. Well, I think that’s a good thing. You know, I’m a big proponent of working you know, I’m not interested in retiring I think working is good for us. Now, it would be nice if we can choose To work and we can choose what we want to do. And we don’t have to have a dreadful terrible job. I’m assuming that when I when I say that, of course. So just some interesting things here to have the purchasing power of a millionaire from the 1900s. Okay, get this, this just shows you what the Federal Reserve and the government has done to the value of our dollar, right? Because here it is, this one’s a big one. To have that purchasing power of a millionaire from the 1900s you would need to have nearly 30 million in today’s dollars $30 million, right? And to have the same impact or influence on the economy as a millionaire from the 1900s you’d need closer to $100 million in today’s dollars. Now. I’m not exactly sure why they’re, well, let me see purchasing power was the first one that was 30 million and then to have the impact or influence on the economy 100 million. I’m not exactly sure why that’s tied up to think about that one. But interesting stuff, interesting stuff. So, in other words, plan for your future. That is the takeaway here, plan for your future. And you have got to do planning, and you have got to invest. Because the big problem that so many of us will have, and it’s a good problem to have is problems go, this is a problem you want to have, right? But here it is, it is a problem. Nonetheless, it’s called too much life left at the end of the money, too much life left at the end of the money. So we’ve got to plan for longevity, and hopefully you’re listening to my longevity and biohacking show and you’re thinking about living longer, and you’re also thinking about the widespread implications this will have on society. In the economy as a whole, which, by the way, I want to mention to you that there is it’s about a 95% chance, by the way, that this weekend coming up in Phoenix or the venture Alliance, we will have none other than Mr. Ken McElroy joining us to speak to our very intimate small group for about an hour or so. Ken McElroy, as you may know, is the author of a few of the rich dad books, the rich data advisor books with Robert Kiyosaki. His books are fantastic. He’s just a fantastic guy. I’ve been with him at several events. He is about a 95% chance that we’re going to see him this weekend. He’s gonna come by and talk to our our intimate group. So join us as a guest for the venture Alliance this weekend in Phoenix. It starts Friday evening at 7pm and we go through Sunday at about 5pm and it’s is going to be a fantastic weekend. You can go to venture Alliance mastermind.com to learn more about the venture Alliance, and you can also go to Jason hartman.com. And click on events where you’ll see of course meet the masters of income property coming up in Irvine, California in January. Still have early bird pricing for that. And venture Alliance. One time guest event ticket is on that same page. So you can join us as a one time guest. Meet Ken. We’re also working on getting Tom wheelwright there, author of tax free wealth. He’s been on the show before Ken’s been on the show before, and these guys have some great information to share. And, of course, we have confirmed Charles Goulet, who was on the show recently, talking about what Trump means for investors in the world. So we’re gonna have a fantastic weekend this weekend. Join us I know it’s short notice, but hey, you know, do it. Just join us go and register by yourself a guest ticket and join us in If you decide to join the venture Alliance mastermind, we will apply your guest ticket cost to your annual membership. So this is if you really want to take your investing your business to the next level, the venture Alliance, a great mastermind group to help you do that. Now, many of you have asked, of course, over the years about my litigation in Kansas City, and I told you about that. Recently. I talked a little bit about it on a prior show. And I just thought I would take you back to where it all began. Now, about six years ago, well, really seven years ago, I felt that this property manager results property management and its owners can Logan and Quintin Carney, you know, they, I just thought they had their hand in the cookie jar, and they were they were taking my money. And over the years I’ve had a few different people approach me and say that they’re doing the same There, and I published three podcast episodes on my AIP is show, and that’s AI p is.org. And I think.com to either one, or you can find iTunes, etc. And that show has well over 100 episodes, but three of those episodes, which the judge, Judge W. Brent Powell, Judge Powell, who I have never met, who is talking to the prior judge, Judge at well, Charles II at well, who has since retired, who was overseeing this case years ago. He’s talking with him. And I’m told that that is not cool. He should not be getting advice from the prior judge. And this is what my lawyers telling me so I’m getting pretty bummed out about the way this thing is going. They have somehow made the case about everything except the actual case. This is an incredibly simple case, when I play this video for you the soundtrack from it, you will hear how incredibly simple this case is. I, in six years have not been able to get the other side to produce simple invoices for repairs. And as a consumer advocate, I feel that it is my duty to talk about this to teach people to share the lesson I have learned about this and to hopefully stop it from happening. So a lot going on here. You know, my my first amendment rights, I think have been unfairly limited. Because this judge has made me D index these podcast episodes from Google, so nobody can find them. And these are other victims of results property management that I interviewed on my show. I know They came forward. And I heard their story and interview them. And they’re telling their story, not my story, their story. And that freedom, that first amendment Freedom, freedom of the press, freedom of the media, has been obscured at least for several months now. So hopefully that will change. But I’m looking for resources, if any of you out there have resources or suggestions or can help on this case, we don’t have too many lawyers as clients. We have lots of engineers, but not a lot of lawyers as clients. We do have some out there. But if you have any thoughts on this, let me know. I’d love to hear from you. Please reach out to me. Take a listen to this video that I published about six years ago, a little over six years ago, and I think you’ll find it to be enlightening. Now let me also tee this up by saying one more thing. Look, I talked A lot about commandment number three. What is commandment number three of my 10 commandments of successful investing? It is, thou shalt maintain control, thou shalt maintain control. And the reason you want to maintain control and invest in income property, the most historically proven asset class in the world, in my humble opinion, is because if you don’t, if you relinquish control when you relinquish control to a wall street banker, a fund manager managing a mutual fund, someone managing an LLC on a deal, you know, the CEO of Enron, whatever it is right to Bernie Madoff, it could be anything right? You leave yourself susceptible to three major problems. The number one problem, you might be investing with a crook. The number two problem you might be investing with an idiot in either way through their cookery or they’re in coffee. You could lose money. So assuming they’re honest and competent. The third problem when you relinquish control and don’t follow commandment number three, is that they take a huge management fee off the top for managing the deal. So all of my complaints about property managers over the years about this company results property management and its principles I rumor has, it has it that they’ve sold the company so, I don’t know I’ve not confirmed that yet. But this is, you know, Ken Logan and Quintin Carney here that I’m talking about. My complaints about them are minor compared to my complaints about Wall Street, what your property manager can do to hurt you and reduce the returns on your investment. It’s it’s fairly minor in the overall scheme of things compared to relinquishing control in some sort of stock investment. Wallstreet type investment, a pool money investment that is a much bigger risk a more risky endeavor. I did invite them on the show by the way, they never accepted my invitation. They’ve made the case about everything but the case. And it is mind boggling to me how in our our legal system, the truth just gets so massively obscured. The truth on this case is incredibly simple. I want copies of the invoices to prove that the repairs were done. And I also want to know that the repairs were actually necessary these maintenance costs in six plus years now. I have not been able to get that. My lawyers have not filed any motions to compel. It is just mind boggling to me that you can go into court. And the truth is just completely obscured. This is so it’s insanely scary. Simple this case, yet, they’ve made it about everything. But the actual case there, you know, we’re not litigating over the actual case at all, it seems we’re just litigating over a bunch of irrelevant ancillary issues. So here’s the video, see what you think I’d love to hear from you. Remember, I am a consumer advocate. I’m in this industry to make it better to help our clients to just make sure that the lessons I learned are shared with you. So here’s that video go check out venture Alliance mastermind calm and Jason Hartman calm. A lot of you have registered for our meet the Masters event coming up in January in Irvine, California. So those tickets are selling really fast, but this weekend, I know short notice, venture Alliance mastermind it’s gonna be a great weekend. So if a couple of you want to grab guests tickets, I know it’s short notice, but hey, join us. We’d love to see They’re in here is the audio track from that video that I created about six years ago. purpose of this video is to help you spot a property management ripoff is Quintin Carney of results property management running a scam. Hello. The purpose of this video is to talk about what I believe to be a property management ripoff. Now, it’s that’s open to debate and discussion, but in my experience, I think this is a property management scam. So my name is Jason Hartman. I am president of Platinum properties investor network Incorporated. We’re based in Orange County, California. And this is Karen Karen Nicklaus. Karen was our operations manager for many years, and would also manage my managers in my portfolio. So she did all the bookkeeping and stuff like that, and is familiar with what went on here. So I wanted to talk about this but before we get into the actual, the actual situation which I believe to be in Rip off okay. I want to show you that I have been threatened with a lawsuit from the person we are going to talk about Quintin Carney’s attorney. Quintin is the owner of results property management Metro wide building and I believe he calls his real estate company results real estate, if I’m not mistaken. And his lawyer Nicolas Porto, has sent me a letter threatening to sue me if I release a video saying that there are many inaccuracies. Now, I did not release the video so far. And I asked him to be specific about what the inaccuracies are saying that I would be happy to edit them if there are any mistakes, and I sent them a private link where they could in advance, look at the video and correct any wrongful statements that I might have made. so far. They have not responded it’s been several days. I said I would release the video. I still didn’t do it. I’ve given them ample chance to respond. I have sent him numerous emails. I even took the email and I faxed the email to him, saying, you know, tell me what’s wrong with the video. And we’ll make the changes before it’s released. But look at on the creating wealth show, my very successful podcast that I’ve been doing for many years. We talk about these property management situations. And our goal is to protect the consumer to protect you our potential client, and other people who might be hit with some kind of scam or wrongful thing. Now, it’s a holiday and the office is actually closed, the building is closed, the air conditioning is off. So Karen and I are kind of casual here today just working on a few things. Yeah, I know. It’s a little warm in here, isn’t it? But anyway, so where do we start on this Karen? results property management is the name of the company and then Quintin owns a building maintenance company called Metro wide building. Okay, Metro wide building is here. Let me figure out how to hold this. You see Metro wide building. Okay. That’s his maintenance company. Now this maintenance company, I believe it’s a shell company, because this company has, according to the people that are, you know, not really involved. I don’t want to say they’re involved because they’re not involved. But it has no employees. And it’s just amazing. I don’t even understand what’s going on here. But I started to get upset because on this four Plex that I own that is managed by Quintin and his companies. You see here that they have charged me over 12, almost 1300 dollars here in for a property of maintenance of a property that is about a year and a half, maybe two years old. Now. I mean, this is not an old property, okay. And these bills started getting just completely ridiculous. Here’s a bill to repair a garbage disposal. It’s a service call. It’s $60. They want to be paid here or they deducted From my check, you notice it’s not signed by the tenant. It’s not signed by the technician. There is no detail to this bill. This is how a real property manager would bill you. They would send you details. See here from Home Depot is the receipt. And here is a copy of the labor bill. And you can see the contractors that that was written to, here’s another one. Okay, here’s a plumbing contractor for a different property I have in Alabama. And here you see their bill, you see that the bill is signed by the appropriate parties, the person who received the work and the person who did the work. Okay. Let’s just talk about some of these ridiculous bills here, in my opinion are ridiculous. Here’s an hva service bill, HB AC service bill, the air conditioning All right. And this is $146 deducted from my check by Metro wide building. When I inquired of Metro wide building as to who did the work is does Metro wide building have their own employees? Well, apparently not. Well, who’s the subcontractor? Oh, we saw about all the work I talked to. I talked to Pat, who is the maintenance director for Metro for results, property management. And according to him, he does not receive a paycheck from Metro wide building. And according to him Metro wide building has no employees. It just seems like a total shell company to me. And he said when he was really pressed, and I asked him over and over who did the work on this, he said, Well, I think owl did the work. And he was a solo guy without a last name, no company name. And I said, Well, let me see the bill from owl. Let me see the check you wrote to L Let me see the canceled check. couldn’t come up with anything had no answer. They finally got frustrated with all my requests to see detail which they’ve never provided any detail whatsoever. here another unsigned invoice just printed right out of his computer out of his laser printer and and past The maintenance director said they said he’s pretty sure that al the solo guy did this work as well. But he’s not sure but he supervises the work find you. So finally they sent me a refund check for part of the money rather than sending the actual the detail they just sent a refund check for part of it. Now I want the rest of this. What I believe to be fraudulent work refunded to me. And I want it refunded to our clients. Well, I don’t know that they’ve done it to our clients but I want to for accounting. No documents have ever been provided they have not responded to any of my emails. Their lawyer has not responded Quintin has not responded Elena, his office manager has not responded. This to me seems like a completely wrong situation here. Karen, what else do
Jason Hartman 31:46
I have one comment here is because we have treat carpet for odor. On June 23. I have a bill here that says $95 to treat carpet for older this is this is for pet odor. Now this is something that tenants should have paid for First of all, assuming there’s enough money in their security deposit, they should have paid for it. But again, nobody knows if this work was really done. Because it’s nobody has signed this note. When I asked them, they can’t tell me who did the work. They don’t know. Somehow mysteriously someone did all this work. They billed me for it. But yet they have no bill from any subcontractor. They have no receipt, they have no canceled check, and they don’t know who did the work.
Jason Hartman 32:27
It’s crazy. All the thing that gets me on this one is this one was dated June 23. This one here is for another unit within the fourth flex and it’s $100 dated June 15. So it’s $5 difference for from June 15 to June 23 for treating carpet odor, so crazy. There’s gotta be some consistencies in there.
Jason Hartman 32:47
Um, here’s the other thing that really concerns me about Quintin Kearney or Quintin Carney sorry Karen is pronouncing his name. Um, I think Quintin Carney is probably also running the same scenario with homeowner’s association, he appears to be managing the homeowners association for this area of duplexes for plexes and condos. And he will not provide any documents. I sent a letter to him to Elena, his, his office manager for the property management company, and to his attorney requesting a full package for the homeowners association. Now, they deduct and they charge dues for all of these homeowners, yet they will not provide any copy of the CCN ours, the minutes of the homeowners association meetings, the names of the people on the board of directors and the budget for that association. Okay, all of this. I have the right to as a member of this homeowners association, and so does every owner and so far I’ve been, you know, totally stonewalled. They have not responded also. I have offered Quintin the opportunity to come on the show and dispute and refute any false claims and he has ignored But he has not responded. I said, you know, come on. If you think if you think we’re saying something untrue, come on here and correct it, make a rebuttal. I’ll give you the opportunity. He’s totally declined any comment and ignored any request for an interview?
Jason Hartman 34:16
Yeah, the only thing we’ve received from him is the notice from his attorney.
Jason Hartman 34:20
Yeah, saying that there are numerous inaccuracies. But his attorney Nicolas Porto has never bothered to respond to any of my requests by fax by email. He has not responded to any of them saying, Be specific, tell us what the inaccuracies are. And we will change them and we will address them. So look, you know, you’ve had your chance, we’re going to release this. It’s going to be on the show. It’s going to be out there for people to see because we don’t want our get our clients to get burned. I want an accounting. I want receipts, I want canceled checks or I want my money back. And I want the same for all of our clients.
Jason Hartman 34:58
And just one other thing in closing is when you have a multi unit property make sure that your property management statements are one statement per unit because they can be convoluted in trying to decipher what documents what line items go to which unit. They can be numerous and then they have highlights and notes written at the bottom by the top. Okay, so anyway, there you go.
Jason Hartman 35:22
So this is Kansas City, Missouri. That’s the area where results property management is located at Lee’s Summit, Missouri sorry, it’d be more specific Kansas City area Blue Springs Lee’s Summit, but Kansas City’s the greater metro area. And folks, I’ve been talking a lot on the show at Jason Hartman calm on iTunes on my creating wealth show podcasts about the self management revolution. Now I have some very good property managers and and I own properties in several states all around the country. And you know, not all property managers are doing stuff like this, but I believe this guy is and he has not been actually accountable at all. He has not responded to any of our requests for any accountability. Quintin Carney, come on the show, I have invited you, I have given you the opportunity. We want to hear what you have to say. We want you to be specific, we want you to provide some real accountability, because I think that people are just being scammed. Okay. So here’s your chance, come on the show, you can come on later, you can come on at any time. And we’ll hear what you have to say. I look forward to it. And everybody, income property is the best investment in America, but you got to keep on it. And when there are situations like this, we want to expose them, because we want to make sure that you have control of your investments and your property managers. Again, this is relatively small potatoes compared to what goes on on Wall Street and all of the big bonuses being paid and all the rip offs there. But again, you know, $100 here, $200 there, you know, after a while, it adds up and it really changes the company. Have your investment. Alright, happy investing. Learn more at Jason urban calm and contact us if you have any questions and Quentin, come on the show, let’s hear what you have to say and be accountable.
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