Jason Hartman starts the show by talking about the mentors who changed his life, getting leverage in the three primary areas of life, and stress. Then, he interviews Paul Mladjenovic of The Raving Capitalist. Paul is also the author of several books, including Stock Investing for Dummies. He shares his thoughts on the current financial outlook and what people should do to protect themselves from this catastrophe. Paul also advises in favor of creating a home-based business, becoming self-sufficient, and diversifying your current asset portfolio. They also talk about Warren Buffett and why gold should be a portion of your diversification.
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This show is produced by the Hartman media company. For more information and links to all our great podcasts, visit Hartman media.com.
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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 1000s of real estate transactions. This program will help you follow in Jason’s footsteps on the road to your financial independence day, you really can do it. And now here’s your host, Jason Hartman with the complete solution for real estate investors.
Jason Hartman 1:04
Hey, welcome to the creating wealth show. This is episode number 592. And as promised, because I went long, which is no surprise, I know that happens all the time. On one of my intros last week, we did not get to the raving capitalist. So I’m gonna keep this really short. So we can hear from the raving capitalists today. He also is the author of stock investing for Dummies. And yeah, you know, stock investing probably is for Dummies. You know how I feel about Wall Street, the modern version of organized crime? Well, I’m back from Las Vegas, I was there for a couple days, I attended a conference and spoke at a conference for people that sell products on Amazon. And this company amazing.com hired me to do a real estate investing course for them. And I believe they just launched the course actually on Friday. And then I had the privilege to speak to their audience. I was the last speaker at the event. That was the second-largest audience I’ve ever spoken in front of. It was about 2000 people. So wow, I was nervous. I wasn’t nervous once I got out there. But you know, that’s funny. That’s interesting. Because, you know, in life, I think we all make ourselves, you know, we make ourselves nervous about, you know, anticipation, right? When we’re actually doing the thing, we’re usually not, you know, it’s no big deal, right? When we, when we do it, I think this is true for a lot of people, not just me, but but the anticipation of it, you know, we get kind of tense and stressed and a long time ago, I just realized in my own life, the concept of stress, you know, when I think I’m the type of person that, you know, people would probably say is a little high strung, I think that would be a fair statement about me. You know, I kind of make a lot of promises want to do a lot of things and then I you know, get crazy trying to keep all the promises, and make sure they all come true. And you know, I came up with this quote many years ago about stress.
And I think I took it a little bit from what I’ve learned from Denis Waitley, who was on the show before episode number 150. Denis Waitley was one of my very early mentors who, frankly, just completely changed my life, along with Zig Ziglar, Jim Rohn Earl Nightingale, and Waitley, and who else? I’m missing someone there, aren’t I? Jim Rohn, there were four. Jim Rohn, Zig Ziglar, Denis Waitley, Earl Nightingale. That’s four. Did I say all four? I don’t know, can’t remember. Anyway, so he talks about stress and eustress. And eustress is actually the I think the good stress. So there are there are good, there’s good stress, and there’s bad stress, right? Stress obviously can kill it’s very bad for our health. It causes us to release all sorts of, you know, the the stress hormones into our body and that, you know, creates an insulin response and it makes us retain body fat. And you know, it’s like super bad for us, right? Stress is bad. You remember who was it? The doctor that that first identified what’s called the type A personality. He was, uh, I can’t remember who that was. Was that like, I don’t know, hon selia or something. I can’t remember her Jonas Salk or something like that. I do not remember. So forgive me if I totally botched this. But anyway, this cardiac doctor, I’m not exactly sure what part of Cardiology he dealt with. But it may be surgery surgery or not, I’m not sure. But notice that in his waiting room, the edges of the seats were worn more than the rest of the seat. In other words, so these stressed-out type A personality people that would come into the office were always on the edge of their seat. And the edges of the seat were actually worn down more in the waiting room. I mean, isn’t that funny? You know, I don’t know if there’s any poetic license taken with this, you know or not. So, suffice it to say, I came up with this quote many years ago, and I think it’s pretty good. You know, I always said it to myself, is the end and to other people who said, you know, Jason, you’re too stressed out. And I would say, stress comes from not doing the things you know, you need to do. It doesn’t come from doing things and being busy, at least for me, and I hopefully, maybe this is true for you in the audience, I think it probably is, you know, when we’re busy. And you know, we’ve got a lot going on, you know, that is not necessarily in and of itself stressful.
What is stressful is, is not doing the things we know, we need to do. So when we’ve got this stack of unfinished stuff, that I think is what stresses us out, it’d be at least for me, that’s the problem. I don’t mind being busy I in fact, I love it, you know, that like puts me in the zone. Remember, I had Steven Kotler on the show a while back, and he wrote a book called flow, and how, you know, people get into these states of flow where they don’t even feel like they’re doing anything. It’s almost like it’s done for them. And he talks about these extreme athletes. And, of course, when he was on the show, he was talking about the book, he coauthored with Peter Diamandis abundance, the future is better than you think. Now they’ve got a new book out called bold, where they coauthored that, and I’m planning to get them back on the show to talk about that. So it’s pretty darn good book. So, you know, I had this speech coming up, the second-largest audience I’ve ever spoken to the largest being about 3600 people. And, you know, I was just really stressed about it. And I was doing my PowerPoints the day before, and, you know, figuring out the slides and stuff. But you know, when I got up and did it, it didn’t feel stressful at all, it was just the anticipation, not doing it, you know, it was like a working up to it leading up to it was the stressful part. But once I was doing it, I, you know, I felt like I was in more of a state of flow in it, it was great. It was just a lot of fun.
Anyway, one of the takeaways, I spoke about leverage. This is a talk that I’ve been getting giving as people have interviewed me on a lot of different podcasts and radio shows, and so forth, over maybe the last year or so. And I talked about leverage, getting leverage in the three primary areas of life, our business, our biology, and our investments, business biology, investing BBI. Okay, so that’s, that was what I talked about. And as I always say, it’s an amazing time to be alive. So here is my challenge to you, before we get to today’s guest. And I, this only just came up as I was doing the talk last night in Las Vegas, and I was the last speaker for this event. Okay, so that was like, even more stressful, right? It was a big responsibility, because if I sucked, that’s how they would remember the whole event. You know, by the last guy, you know, you’re you don’t remember much in the middle, you remember that? The Beginning and the End. That’s usually how our memories work. Right. And so, you know, what I what I said is, it’s, you know, it’s an amazing time to be alive. And I was talking about technology and how it’s enabling all these things with our business, our biology and our investments. And of course, the the highest leverage in investing is income property income property is that natural leverageable asset class, the most leverageable of all, it is the most debt friendly asset class. But that’s not the only place you get leverage when people think about income property, they usually think about, you know, well, you can finance it, and you can leverage it, and you can leverage inflation and leverage appreciation. And that’s all true. But there are other areas, because income property is a multi-dimensional asset class, that you’re gaining leverage from. We of course, with techniques that we talked about on the show, and at my live events, and so forth. And at the venture Alliance, for sure. We talk about other ways, you know, just through using knowledge is power to leverage our investments and gain more leverage over them because leverage allows us to do more with less, do more with less.
So here’s the affirmation lest I get on another tangent, right. You know, me, Mister tangent. The affirmation is this. And I just did this, you know, with the audience last night. 2000 people out there. I said, who’s willing to take this on my saying it’s an amazing time to be alive as an affirmation. And, and they said, Yeah, we’ll take it on, right? So I said, Okay, when you ask yourself, or when someone asks you, what time is it? You answer with, it’s an amazing time to be alive. It’s an amazing time to be alive. So I want you to think of that, okay, think of that the next time you look at a clock, the next time you pull out your phone, or turn your wrist and look at your watch, or you’re driving in the car, and you look at the time and you think, what time is it? I got an appointment at 2pm? or whatever, right? You know, what time is it? I need to know what time it is. Think to yourself, in addition to the actual time of day, think to yourself, what time is it? It’s an amazing time to be alive. And that’s what we always talk about on the show, right? Of course, there are so many problems and you know, the government and the Federal Reserve and all of this stuff, you know, all these problems. But what we’re doing on the show, is we’re we’re talking about how to align ourselves with the interests of the government and the Federal Reserve, and they’re trying their best to screw things up, aren’t they, and they’re trying their best to grab power and take advantage of the little guy and, and all of this stuff. But regardless of that, if we align our interests with them, the most powerful entities the human race has ever known. Central Banks and governments, okay. If we align ourselves with them, we can achieve a lot of leverage and very powerful results. And then the amazement, coming from technology today is nothing short of, well, amazing, for lack of a better word. Just think to yourself, remember that affirmation? It’s an amazing time to be alive. It really is, isn’t it? And you know, that’s, that’s an automatic statement of gratitude. It is very difficult to achieve any degree, at least in my opinion, to achieve any degree of true success. If one is not grateful for what they already have, and looking toward the future with positive expectancy. So think of that affirmation. What time is it? It’s an amazing time to be alive. Okay. So there you go.
Okay. Well, let’s get to our guests, the raving capitalists, of course, we’ve got our Orlando property tour coming up this weekend, we have 58 people registered. This is our biggest tour ever. We are going to be packed but it’s going to be a lot of fun. If you can still make it come on down. You know, we got a much larger room. So we have space in our room for sure. We have a lot of space, actually. Because we either went from the room we got where we were expecting about 50 people. And now we got a much bigger room, we could probably hold 100 people in no problem. So we’ll have lots of space in the room. And we’ve got a beautiful big motorcoach, too, and we’re gonna have a great time so it’s gonna be a lot of fun. Orlando property tour this weekend, last minute registrations Jason hartman.com. And the events section. Meet the masters of income property coming up in San Diego in January. So if you’re out in the you know, in the in the cold areas and the the polar vortex they say is coming in the snow and I don’t know where’s all that global warming al gore promised. You know, get out of the winter weather and come see us in in sunny, beautiful San Diego in January. It’s a great time to come. Early Bird pricing for meet the Masters is still going on. That event sells out every year it will sell out I’m sure again, register at Jason hartman.com. And of course, the venture Alliance we’re going to do by in February, that’s going to be phenomenal. If you want to take things to the next level. We did have some problems with a venture Alliance website. It was down last week for a short time, I guess. So if you if you went to venture Alliance mastermind.com and notice that that site was down, please go visit again, venture Alliance mastermind.com. And I also want to make sure I extend a formal welcome to our newest venture Alliance members, Jeff and Shannon. We’re looking forward to having you on board. They came as guests to the last trip when we went to Newport Rhode Island and Providence Rhode Island and now we are going to Dubai in February so that’s just going to be phenomenal. All right. Let’s get to the raving capitalists. Here we go.
It’s my pleasure to welcome Paul Mladjenovic to the show. That is not an easy name to pronounce by the way, but I did it. I think. He is the author of a couple of books one is entitled stock market investing for dummies. He’s got a fascinating story coming from a communist country to the US and becoming a raving capitalist. Paul, welcome. How are you?
Paul Mladjenovic 15:10
Oh, what a pleasure to be on your program. Thank you for having me.
Jason Hartman 15:13
Well, you are a passionate guy, I can just tell from our little preliminary conversation. So I’m excited to have you. So first of all, your background growing up in Yugoslavia, it gave you a lot of ability to forecast economic trends, you say. Tell us about that.
Paul Mladjenovic 15:31
Well, the thing is, I came to America in 1963. I was only four years old at the time, and I was grateful that my family was able to escape Yugoslavia. And I came to United States and I lived in Hoboken, New Jersey for the first 30 years of my American life. And at first I said, think what bad luck I was born in a communist country. But actually, I’m quite grateful. Because when I, when I saw communism, it helped me really hone in on the issues that really touch on economics. Alrighty. And I came to know very sharp differences between things like, you know, free market economics, and things like capitalism and socialism, and communism, of course. And it made me understand better how government policy affects the economy. And it made me much better in terms of my expectations and forecasting, for what will happen in the general economy. So I’m grateful for that, because it helped me be able to protect a lot of my clients and students and readers, you know, in terms of what trends were coming, you know, especially with things like the housing bubble, and the crash of 2008, and so much more. So I’m grateful for the experience.
Jason Hartman 16:36
Fantastic. So when you say it helps you protect your clients? What do you mean by that? Were you a financial advisor? Are you a financial advisor now, or tell us what you do?
Paul Mladjenovic 16:45
In 1985, I am, I got my Certified Financial Planner designation. So I’m talking to you at a good time. Now, in the summer of 2015, because this is my 30 year anniversary of being a CFP. And no, I don’t sell securities or sell insurance. Basically, you know, I’m an educational person and a fee-based consultant, and I help people understand this. And basically, what my background helped me to understand, you know, how things like the government and the private sector works. So it gave me a better idea about where to find good investments, you know, where are the trends going? You know, is there a recession on the horizon. And these kind of things helped me understand how the economy’s work, and to make better decisions, not only for things such as, you know, investing and where people can do it, so they can be safer, but also in terms of business opportunities, because I also help people launch a business. So this kind of background helped me hone these skills to help people in terms of building wealth, either with their investments, or their active activities, like starting a home-based business.
Jason Hartman 17:50
Okay, so Paul, can you give us an example of how that background, you know, helped you forecast trends and so forth? You know, whatever example you want to pull out, but, but like, how does it tie in? I mean, I know you say that, and it sounds interesting, and I agree with you. But you know, like a, like a practical example of it, if you would.
Paul Mladjenovic 18:08
Oh, it’s the first of all, since I came from a communist country, what is communism, but the fact that the government basically micromanage every aspect of the economy. And, you know, as you as people come to know that, you know, it removes all discipline in terms of a free market venue. So ultimately, communism ends up collapsing. But the thing is that that extreme example, helped me to really see, you know, where even individual policies can have an impact. So in other words, whenever government policy had a macro effect on the economy, it helped me see what would happen, for example, take the housing bubble, like you mentioned, many of the people in your audience are very interested in real estate. Back in 2004, I had written an article where I told people I was expecting, you know, the house a, that it was a housing bubble, and that it was gonna pop and have massive impacts, you know, net negative impact on the economy. And why is it? Because I noticed how the government was doing far-reaching activities that ended up inflating housing prices, because people forget that, you know, you look at investments the same way you look at anything else. To a supply and demand mechanism. And you have to let the free market work so you can get a true valuation of whatever it is, whether it’s a business or real estate, or even stocks for that matter. So back then, I had noticed that the Federal, that the federal government through its mechanisms like the Federal Reserve, and Fannie Mae and Freddie Mac, warped supply and demand in the housing sector. Remember, this came on the heels and after I remember the internet crash that occurred with the with the internet and the tech stocks crashing, so they needed to try to boost the economy. But the thing is this, when you have a mechanism like the Federal Reserve, what can you do? You print up money, the money flows into the economy, and they can control where it goes. So all it really ended up doing was like it inflated the housing market. And this is when I started to first learn the differences between the bull market and a bubble. So what happened in real estate was that they did many mechanisms that had a macro effect on real estate, they lowered interest rates to below the artificially low levels. In other words, they were encouraging that. They also removed typical lending practices, because they wanted to boost homeownership. So in many cases, through the same mechanisms, they allow things such as letting people borrow up to 100% value of real estate, and no background check or income check.
Jason Hartman 20:37
Oh, it was worse than that. You could, you could borrow 135% on a refinance. I mean, it was it was absolutely psychotic. What they were doing.
Paul Mladjenovic 20:48
Exactly. So many people wanted to blame the private banking sector in the private mortgage sector, but they forget that, that the warping activity happens straight from the Federal Reserve. So the thing is Fannie Mae and Freddie Mac then in the telling, you know, a lot of their lenders and say, look, if you have any mortgages that you don’t want to sell them to us. So think about what you set in motion, you let people borrow up to 100%, with no background checks, and as you pointed out exactly right, you can borrow more than 100%. Interest rates for next to nothing, expanding the money supply, lowering standards, and then telling these mortgage companies and the lenders say, look, if there’s any mortgages, you don’t want to sell them to us.
Jason Hartman 21:28
You know what, you know, what’s interesting about that, Paul, is that I just thought of this, as you were speaking, I haven’t expressed it this way in the past, but it but I think it is a pretty accurate description. Fannie Mae and Freddie Mac, the government-sponsored entities, these sort of pseudo governmental entities, right. They’re really in the business of money laundering. You know, they take these bad loans, and it’s like, well launder them all for you. Interesting way to look at it.
Paul Mladjenovic 21:58
Exactly. The people don’t understand how horrendous again, keep in mind that when they were bought. See, so the banks who were making these loans, and they were lending out like six figure loans to people that you and I we wouldn’t even lend them our lawn mower. Never mind six figures. You follow? So then we’re gonna
Jason Hartman 22:16
Yeah well. And like mid six figures, high six figures, maybe even seven.
Paul Mladjenovic 22:20
So these, these banks were carrying these very shaky loans. These were the subprime loans. So what they did was they sold into Freddie Mac and Fannie Mae. And what happened was now Freddie Mac and Fannie Mae packaged these loans. And then they became, you know, mortgage securitized loans. And they in turn sold into Wall Street. Wall Street and all the firms there, had no idea they were, they were buying loans of deadbeats, you know, who again, weren’t worth even a lawn mower. Because as far as they were concerned, they were getting securities from, you know, government sponsored enterprises, as you mentioned. So they thought they were buying fake securities. So all the government ended up doing was, whether it was whether it was by design, or by accident, it doesn’t matter, the point it was happening. So these bad loans were permeating throughout the sector, and even sold internationally. So you had set up a massive bubble. And sooner or later supply and demand catches up with a bubble. You got to the point where you couldn’t sell any more to whoever else was involved. So what end up happening then was that when you warp supply and demand, it usually it punches you in the end. Because then what happened was like a home builders got the signal that the real estate market was booming. So they had overbuilt condo complexes and properties across the United States. So then what happened, then finally, you got to the point where supply rate was excessive, demand couldn’t keep up. And that was the death knell of the bubble. Because it went beyond normal supply and demand dynamics. And now people have to learn the difference between a bull market and a bubble. The bubble is an artificial entity that’s typically done by catalysts that are artificial like it like the Federal Reserve policies, etc. Where you don’t get the same thing. If that isn’t it present in the marketplace.
Jason Hartman 24:05
Yeah, so just like communism, and of course has to collapse it can’t go on forever, because it doesn’t make any sense. It doesn’t work of its own volition. So of course, that’s going to fail. But what’s happening now you talked about the past the the items leading up to the Great Recession. What do you see happening now. What what’s going on now with, you know, fiscal and monetary policy and, you know, municipalities and so forth?
Paul Mladjenovic 24:35
Well, you right now, it’s interesting like right now, between you and me, I’m not even done with it yet. But the folks I you know, I I’ve written three dummies guides, one on stack investing, one on micro entrepreneurship, one on precious metals, and my fourth one that was called higher level stock investing. And in this, I had a chance to do the research because my book is coming out in 2016. So I have to make sure that whatever information I tell people will be current and it’ll be tight and factual. And as I was doing the research, it dawned on me like, Oh my god, the conditions now look worse than they did seven years ago. More debt than ever before. And you’re starting to see cracks across the global landscape. Greece, Puerto Rico, China. The point is, is that you have situations when these basically, government induced bubbles are popping everywhere, especially in areas of bonds, and debt. And currencies are starting to collapse as well. Because there’s over there’s this overproduction and all of these things. So I think that I don’t know when people will get a chance to listen to us in this interview. But hopefully, that sometime soon, because as we get into the deeper into the year, 2015, like September, October, November and beyond, I think you’re going to have a full blown upheaval in the financial markets, and the economy. I think it will be dreadful. You have too much debt in pensions. They’re underfunded, you have billions and even trillions, you know, in derivatives. I mean, there’s so many markets out there that are that are beyond the level of sustainability, that you’re going to see a lot of cataclysmic things happening. I’d hate to sound like this. I mean, I’d love it if it was a great market. But the point is this, people need to be told about this in advance, they should be talking to their financial advisors about, you know, powering back on their aggressive activities, like you know, growth stocks, and things of this nature, building up their cash base, it’s probably not a bad time to start launching maybe a second enterprise, like in your spare time with a home business. You know, the things that people could do to be more self sufficient, and to help put up a protective wall versus the macro events that are going to be unfolding. So you’re going to see the next leg of the recession, you’re going to see global markets, and many of them have already started to fall apart. But that could end up being like a, you know, like, like dominoes, and you’re going to start seeing it happen in Europe, and in the United States markets as well. So it’s time to be ultra cautious.
Jason Hartman 27:07
Yeah. So tell us what this means though. Like, what, what’s going to happen? I mean, does it mean. Yeah, I mean, I’m sure it means a decline in the stock market, which many believe is a bubble right now. But does it mean inflation, deflation? Does it mean, you know, you like what does it mean? Does it mean dollar collapse? You know, when you said you wrote a book on precious metals? I thought, oh, gosh, here’s another gold bug, maybe? Maybe not? I don’t know. But, you know, what, what does it really mean to be?
Paul Mladjenovic 27:35
Well, here’s the thing, right? Now, you have a lot of people who are the dependent, you know, on a healthy pension system, they’re dependent on like the stock market to continue to hold its gains. And the market is entered a bubble phase. And to a great extent, the reason why is that, since 2008, really the problems were not solved from 2008 2009. All they really did was on a worldwide basis, add like, you know, 30 to $40 trillion worth of added debt. So the real issues to people is, is that, that there are problems that many of the pensions are underfunded. Secondly, many of the portfolios out there have too much debt in them. Like, for example, Puerto Rico is in the isn’t default right now, technically the fault, and they have some like $72 billion, or $72 billion worth of debt? Well, a lot of that debt is in the form of bonds, and it’s in many mutual funds across the country. Then you have the fact that many municipalities out there are, have overextended liabilities, and they won’t be able to meet all the pension obligations of all their workforce. And it ranges from, you know, California to Chicago to many municipalities and counties across the country. So what’ll end up happening is that for them to meet their obligations, you know, they’ll have to start cashing in whatever assets they have. And for many of them, those assets are stocks and bonds. So you’re going to start seeing, you know, more and more sales and pull backs of these things as people try to pick up on the shortfalls of their liabilities. And that’s going to cause some major problems, because to a great extent, stocks right now are at a high because there’s been more money that flowed in there because of the Federal Reserve. And next thing you know, is that many hedge funds and many individual investors too, you know, have borrowed against their stocks at an all time high. So what happens if they start to become a five or 10 or 15% pullback in stocks, then that’s going to end up trigger things such as margin selling and stop loss orders, etc. And so that is going to be a major issue. And September and October is typically the time when there’s turnover in many of the mutual funds. Like when people get 1099 in January for things like capital gains and mutual fund portfolios to great extent, those transactions happened in the fall, and typically, September, October. And the fact that most mutual funds now have a minimal amount of cash on hand. And the thing is that you have the recipes for a major waterfall pullback, which I think is a very strong possibility in the coming months.
Jason Hartman 30:18
So what should people do to prepare for this? I mean, you talked to said talk to your advisor. Be careful. Don’t do, yeah
Paul Mladjenovic 30:24
Be above, well, above it be more precise about this. People. First of all, too many people out there have stocks you that that, you know, are in companies that are very hazardous. You know, like the Twitter’s of the world where there’s, you know, there’s no earnings to show for whatever your stock is. They need to be the only act. And what I’ve been advising my clients since 2008, is that the only stocks they should have is stocks of companies tied to human need. You know, food, water, you know, utilities and the likes. And that are paying dividends. These things will weather the storm, alrighty. Like those people they shouldn’t, you know, people who are investing for the short term, there really isn’t much of an. They’re really just speculating. They’re not really investing. So they should be doing that. If they have overexposure to any individual stocks, especially if they’re not sure if these are, you know, solid, profitable dividend paying companies, they should put on trailing stops. In other words, put on like a, you know, and you know, no less than, say an eight to 10% stop loss order and make those orders good till cancelled. Like many brokerage firms, you could put on this order, and make it good for up to like three or four months. So in other words, if there’s a pullback, you know, you could minimize the downside without minimizing the upside on this. Secondly, they should have a cash position. And by the way, you mentioned about precious metals. Now, I’m not the type to tell people to, you know, move to the hills, into caves. But the point is, they should have their money in other venues, such as savings bonds, especially the double the, the, the eye bonds, which have interest rates, that can vary. So when it first starts coming back, they can protect themselves, and they won’t be locked into like, say long term fixed bonds. They should minimize their holdings of long term fixed bonds. There’s people out there who have a 30 year bond, it’s a 2%. I think that’s insane in this environment, even if they aren’t treasuries, because these are too risky. You know, from my book, I had the chance to interview one of my favorites, which is Mr. Pento, Michael Pento. And he wrote a book on the bond bubble bursting. So that might be a good opportunity for you to interview in the future. But in any case, a lot of these things are very precarious, and to keep on meddling with the economy itself, you know, raising healthcare premiums and making them more difficult for employers. And then, you know, the minimum wage rising, you’re gonna have death by 1000 cuts, more and more people are unemployed, more more people more and more due to a lot of these large retailers, that closing down their chains that are that are not pulling their own weight. So there’s a lot of weakness not only in the financial markets, but also in the economy itself. So people, and so part of the defensive strategies, I tell people, look, you should be launching, you know, a business. I, you know, my longest running seminars called the $50 wealth builder, but my second longest one is called the whole business goldmine. I think everybody should have a home based business, because people forget, you know, when people use that word diversification, it’s become like, almost like a cliche in itself. But when I tell people to be diversified, it isn’t just in a portfolio, it’s among many things. Like I tell people have some gold and silver in the physical form, because that’s a diversification away from paper assets. And having a home based business means you’re also diversifying away from having only 100% of your income derived from a single job. So diversification isn’t just a portfolio, it’s a job. It’s a business. And it’s being away from paper assets as well.
Jason Hartman 33:50
Yeah. So I definitely think everybody should have a little side business, if nothing else than just for tax benefits, but that the thrust of, you know, what we want to talk about is investments. So, talk to us, you said invest in things that have human need. And you know, that’s one of the reasons, Paul, I love and have always loved income property, you know, income producing real estate, that is necessity oriented housing in these low cost markets. Whether they be Memphis or Dallas or Houston or while Dallas isn’t that low anymore, it’s gotten kind of expensive, but, you know, or Indianapolis or Atlanta or or wherever. I mean, there are there are many of these markets around you know, none of the high flying speculative markets. They’re all going to crash and burn, if you ask me.
Paul Mladjenovic 34:38
You know, Jason, since you mentioned real estate, I might as well open up the the item. They are one of my favorite real estate investments. You know, I love real estate investment trusts, because I’m not the type to buy a property because I’m the type of guy that you know, give me a fixer upper. And I can I’ll be in emergency room in half an hour with the from that hammer incident, you know. But real estate investment trusts I like and but not just any old real estate investment trusts would you just mentioned, for example, their real estate investment trusts that specialize in nursing homes, some that just an apartment buildings in areas where people need to housing. I tell people to stay away from real estate investment trust in this current environment. That’s why my own personal opinion away from things like industrial development, or you know, other types of speculation, because economy is too frail for that. But people will always need a home to stay in. And look, you told her about the aging of America. So nursing home related real estate investment trusts, I feel is not a bad part in real estate investment trusts, part of what makes them a trust is that, you know, 90% or more of their income has to be dispensed to, to the shareholders. So for many people in your audience that could be able to, you know, have, you know, with only a few $100 be able to have in their portfolio, a real estate investment that gives them a high dividend, you know, and it’s it could be bought or sold with a single mouse click, so you’re not stuck with a property, you know, with closing costs, and, and you’re waiting for the closing.
Jason Hartman 35:59
Yeah, but but but see, the thing is, you have you know, when you have that kind of liquidity, you also have volatility that comes with it. And you have that what I call intermediary party risk, you have all these people, you know, that are in the food chain, that are skimming the profits off the top, I just like being a direct investor, you know, not not not giving control to other people. I am good. Listen, don’t get me wrong, I don’t swing a hammer. I don’t fix anything I invest all over the country. I own a lot of properties I’ve never seen and probably never will see. So I’m certainly not into doing the work myself. Although some people are I think, you know, that’s not really investing that’s working. But
Paul Mladjenovic 36:41
No, no. I I’m with you all the way and it’s an area we develop expertise and expertise with mitigates much of the risk involved, because there’s people involved in projects where they don’t have enough knowledge or information, in which case, they aren’t speculating because they don’t know their markets well enough. So I cheer you on with that. And many of the people in your audience who are very experienced there. I mentioned mine as for those people in the audience who are too skittish about, you know, buying real estate directly.Real estate investment trust is a way to bite into a brokerage account. But they typically don’t move with the stock market, they move with the real estate market. And because you could buy them like stocks, you could put on stop loss orders, so you can actually mitigate the downside there as well. So that might be one consideration for diversified approach for many people out there. But no, I cheer you on about you because you know, your stuff inside and out about direct property participation. So this is fantastic.
Jason Hartman 37:32
I mean, why don’t why don’t more people do that? You know, it’s it must be that the Wall Street marketing machine is just so big. I mean, they’ve even got a couple of their own TV stations, CNBC and Bloomberg, the mouthpieces of the vast Wall Street conspiracy. Kind of saying that sarcastically, of course. But, you know, real estate doesn’t really have a channel, you know, and, and, and we know, we all know lots of people who have who have gotten rich in investing in direct ownership of income properties. Yet, none of us seem to really know anybody who’s done that in the Wall Street world. That’s not an insider. You know, lots of insiders have done it of course. I mean, all these Wall Street crooks are so rich, it’s not even funny, but but just regular everyday investors, you know, they’re they’re not they’re not insiders, you know?
Paul Mladjenovic 38:24
No, but I but I cheer you on with that. And I think maybe it’s because a lot of people out there are skittish because, you know, sometimes they have a hard time deciding who are legitimate sources to for guidance scientists. Like I mentioned before my program, who’s one of my favorite real estate experts, because he’s been doing it. I love the people. You know, like I mentioned his name Dave course, he is my favorite real estate expert, then that I hopefully, you’ll get a chance to have him on later on.
Jason Hartman 38:50
So what’s his deal? Is he a buy and hold investor or a flipper or what’s,
Paul Mladjenovic 38:55
What he does, he does a little bit of he does both. But what I like about him is that that’s how he made his money. He didn’t make his money because he was on Late Night with an infomercial wearing a Hawaiian tshirt.
Jason Hartman 39:06
Right right right. So he’s not one of these infomercial sleazeball.
Paul Mladjenovic 39:07
Maybe that’s why some people are skittish about doing it, because they see that they need to go through legitimate venues such as yourself and other people that you know.
Jason Hartman 39:16
But that cheesy guy in the Hawaiian shirt though, a lot of people do buy into that, unfortunately. And I think I think one of the telltale signs that you got to run the other way with some of these gurus is when they have these mega expensive coaching programs, and I have long railed against that, you know, even some credible source, they just sort of sell off their name to it. Trump did it with Trump University. Robert Kiyosaki did it with his coaching program. And I don’t even think they run those things at all. I think they’ve just sort of licensed their name to hit to one degree or another with them and you know, they want to charge people like $60,000. You could just buy some properties instead.
Paul Mladjenovic 40:00
You might as well risk your money on a piece of property at that. Yeah, I agree 100% of that. Exactly. So people need more guidance. And I think that, look good or bad, whatever the economy’s gonna be annual REITs real estate is not a one size fits all. There’s a lot of great areas out there. And if parts of it pulls back, and in the next, whatever, 6 9 12 months, that’s a buying opportunity just as well. So there’ll be opportunities in both good and bad markets. And I think people need guidance on ledges, people like yourself out there, you know, teaching them the right way of doing this.
Jason Hartman 40:29
Yeah. So how can you create wealth with just $50? I mean, you know, we hear these immigrant stories, and you’re one of these immigrants, right? And you know, the guy that came to America with 50 bucks in his pocket. Usually a lot less than that. And you know, is years later is, wealthy. $50. Really?
Paul Mladjenovic 40:48
Oh, no, exactly. Right. No, that’s in my teenage years before I started teaching, and I started teaching in 1983, which was like, right out right after I got out of college. And a few years before I got my CFP designation, I did a lot of this myself, because I didn’t have a lot of money. Look, I came from a communist country, you know, where my parents worked a minimum wage and the garment industry in Hoboken, New Jersey. So who had you know, I was lucky to get enough money to buy a wiffle ball at the time. But when I was able to start making some money, I was working after school, and I started putting money as little as $50. There was a way of buying stocks, stocks, if you’re looking at it, from the point of view of you’re buying companies that are profitable paying dividends, and in there for a long term, you know, long term anatomy people jumping in and jumping out. I seem to many people were speculating the swing trading that jumping in and jumping out. No, then you’re basically doing financial gambling.
Jason Hartman 41:43
You know, that’s interesting you say that, Paul. That is another sign, I think of, you know, the the fake, cheesy kind of a, you know, mentality toward investing or business is the person who’s jumping around all the time. You know, and not doing anything consistent. You know,
Paul Mladjenovic 42:01
Jason, let me tell you. Right at the height of the internet bubble, if you recall that in the late 1990s, I was actually asked to do a book. Like now I’ve done dummies guides, and I’m grateful they’re there. I’m the, the great books that, I’d like to say because I write them, but they put a lot of editors to it, make sure they’re good. I recall, you remember those books, the complete Idiot’s Guide books. I was asked to do a proposal about one on day trading back in like 1998 1999. And I turned it down, because I didn’t want my name associated with that activity. You know, because you saw so many people who had a six figure pension, they decided to do some day trading, and
Jason Hartman 42:37
They lost it all, right?
Paul Mladjenovic 42:39
Exactly. But for me, Look, if I buy 50, if I sell with $50 in a dividend reinvestment plan, and buying a company that’s selling, you know, you know, whatever, there’s a lot of great companies out there that have been there for ages. And, you know, I know people who’ve who’ve started with $50, you know, month in and month out, and they develop huge portfolios. And because they had dividends rising year in and year out, they’re at the point now, where they don’t just have a great retirement income, they have a retirement income that’s growing every year and exceeding the rate of inflation. So no, I think stock investing, you know, like, certainly the way I teach it, at least you from my my courses, is that you’re done, right, and you start off with small amounts and investing in companies that make sense and products and services that people will keep on buying, no matter how good or bad the economy is, you know, you will do well, long term. And you’ll you know, you’ll do a hell of a lot better than the people jumping in and jumping out and waiting for scams from Wall Street and all the rest of the stuff. So yeah, value, right. You look for value in real estate, you look for value in the stock market. You know, and this is what we teach.
Jason Hartman 43:43
Value investing. Yeah. Yeah. Yeah. You know, you know, that that’s, that’s a good point. And actually, it brings me to Mr. Warren Buffett. The value investor. And, you know, I agree with his philosophy. But what happened to that guy? Has he gotten soft in the head with his silly political statements, and this, this crap about his secretary pays more taxes than him yet at the very same time? He’s, you know, in a lawsuit with the IRS because he doesn’t want to pay more tax. I mean, these last I checked, Paul, the IRS will accept more money from Mr. Buffett if he wants to pay more, but he doesn’t, you know, yeah.
Paul Mladjenovic 44:26
And by the way, his secretary makes more net income in her job than 90% of small business owners across the country. So this idea that you call her a secretary. Now, she makes six figures, you know, somebody did the research, I can’t pinpoint exactly, but the estimate was that she makes around a quarter million dollars, that’s a secretary. Okay. But really, where I think the real essence of Warren Buffett is outside of the views that you know, that you mentioned, is that he is a great example. See, everybody wants Warren Buffett’s riches but they don’t want his process. Talk about a long term investor Stir. The bulk of where he made his money was when there was a stock market crash in 1973. The bear market is 73 74 75. He went in there, and he was buying companies when they were dirt cheap, you know. And a lot of those companies, he still has today, a lot of those stocks he still has today. So he was a bona fide long term investor. And he made that because he did the same thing. Just like, you know, the contrarian point of view, whether it’s stocks or real estate, is a very important part, that many people are not contrarians, because it does take a certain amount of fortitude, and a certain amount of gumption. But you need that in today’s economy, to overcome, you know, the forces that are out there. So I’m with you on that. So I use him as an example of somebody, look, he was a long term investor, he didn’t jump in and jump out. And look where he is now. Everybody wants his wealth, but nobody wants his process. And I think there’s a huge lesson right there.
Jason Hartman 45:55
No, I think there is, I think, really, he has the right idea when it comes to investing. you know, I just can’t stand the fact that he’s like three people now. And it just seems like this concept of, you know, when when when people get really, really wealthy, a lot of them just get funny in the head. They have all this stuff that they did to create their wealth. And, you know, it’s it’s likely want to atone for their sins of capitalism or something. It’s just weird. You know, it’s just weird. So that that was my commentary on the Warren Buffett thing.
Paul Mladjenovic 46:30
Exactly. And you know, what, talk about a guy, you know, who he’s also very good at tax avoidance, not tax evasion, by the way, but tax avoidance. You know, the reason why he holds some of these tax forever is because you just want to cash them out and think, you know, I have a big capital gain. Yeah, I mean, so the thing is, yeah, should be his political views should be more in line with his personal views. You know, so maybe that’s a reference you’re making? Possibly.
Jason Hartman 46:56
Yeah, very interesting, very interesting stuff. So any other predictions you want to make? You talked about the municipal thing a little bit? And, you know, it’s it’s just interesting that so many municipalities and states are just in trouble. I mean, the government is just in trouble. It’s like, we’re dealing in this smoke and mirrors economy, where it’s kind of amazing that we can continue this game with these trillions of dollars of debt. 10s, if not hundreds of trillion with a T dollars of entitlement and unfunded mandates coming at us over the next 15 years. I mean, this is just crazy that we’re, we can do this. I mean, I just just mind boggling really.
Paul Mladjenovic 47:40
There are millions of people at risk, and the more they can do to become self sufficient, you know, with their assets. And with starting a home based business, the better off they’re going to be, and what you mentioned about municipal finance, one of the things I did I did a seminar years ago, called megatrends, and meltdowns, you know, and there were things that I saw that were, you know, going to be trending over the years. And one of the things I had mentioned with it is going to be major problems with municipal pensions. And I started, and I started forecasting it over a decade ago. And it was very simple reason. In many cases, who manages municipal finance, like the mayor and the the city managers and the council people, right. They, they, but they there are others. And one of the most common practices that many municipalities that across the country over decades, was that they would turn to the workforce, which is typically unionized. And they say to them, Look, instead of you taking a 5%, you know, increase in your wages, why don’t you take 2%, and we’ll buy and we’ll give you both benefits on the back end, like a bigger pension, you can retire earlier, and the like. So that’s how they were able to placate both the workforce, the taxpayers, and the voters. And they can say, Look at us, we have a balanced budget. And to a great extent, that was a common practice throughout the country. But you get to the point when, you know, fine, because many of them thought, look, if I can push it to the next administration, when I’m not here, when this thing blows up, it will blow up in my face, it’ll blow up in their face, you know. And so the point is that, now you’re getting to the point when, you know, just just a minimal maintenance on some of this debt is now causing a problem with cash flow for many, not only municipalities, but countries directly ranging from Greece and so many other places, is that now you can kick it down the road anymore, what’s left, and so the cracks are going to show up. So you’re going to see major problems with a lot of these pensions, and people who thought they had a wonderful package, you know, in terms of their pension plans, both corporate and municipal, you know, a federal government and even Social Security. Now we start getting to the point where now people will see the cracks in the system, and now they’ll see the problems and for many people is going to be too late. There’s going to be a lot of suffering out there. So my advice to the people in your audience is, look, you know, don’t wait for you know, bureaucrats and politicians to solve the problem, solve the problem yourself. And if they do fix it, that’s gravy. But you know, for years I used to do as a retirement planning seminar and I told my students look, plan your retirement futures as if Social Security is not going to be there anymore. And then if it is, they’re fine. But the more self sufficient you are, the more you’re going to insulate yourself from a lot of these shortfalls, and upheavals and problems that are now at this point, definitely coming
Jason Hartman 50:29
With all of this going on in the world that we’ve been talking about, do you think the US can maintain the reserve currency status? Do you think the dollar can continue to be the reserve currency with with all of these obligations and incessant printing of money and exporting inflation to other countries?
Paul Mladjenovic 50:49
Well, here’s the thing, the cracks in this as a reserve currency will definitely show up in the next 12 to 18 months. Part of the issue is, look, it’ll still be the reserve currency. But what is nipping at its heels right now is the Chinese currency. And despite their troubles over there, there is a strong chance whether it’s this fall or next level, the IMF convenes, at the very least, the Chinese currency will not mean it will replace the dollar, but it may achieve a certain reserve status, where it can be with you know, on the, you might say, a quasi par with the dollar, that is not going to knock the dollar off. However, it will unleash many billions of dollars across the country moving around, and you might start seeing a death of 1000 cuts for the US dollar. So no, it won’t collapse in my estimation. But the point is that if they keep doing what they’re doing, okay, it is it’s days are limited. And whether those days are limited into next year, or 2017. You know, the point is that the vulnerability is definitely there. And, and again, this is part of the reason why I tell people to be diversified. Look, gold and silver. And again, I’m not telling people, they replace all the currencies with this. But the point is, it’s part of a diversified picture. Golden, golden silver, and other precious metals have outlived every currency in the last 5000 years and beyond. So it’s going to outlive every currency of the next 5000 years,
Jason Hartman 52:20
We have talked so much about precious metals on this show, I can’t even begin to tell you. And I have to tell you, I am definitely not a gold bug. Can I tell you why? And please argue with me on this i’d love
Paul Mladjenovic 52:34
Well, I share views, but go ahead.
Jason Hartman 52:36
Yeah. And you know, we can wrap it up after this. We don’t have to go on forever here. But but you know, gold doesn’t. Let me just tell you a story that will tell you why. And you please poke holes in this because I love to be challenged. Paul, it really makes me think. So several years ago, and you’re going to be able to tell by the price I quote, I got a call from a gold dealer in Newport Beach, California when I lived in Orange County, right in that area there in Irvine at the time, I believe. I got a call in the morning, they have telemarketers and, and I was on their list and, and they said Hi, Mr. Hartman. This is so and so with monex m o n e x, they’re they’re a gold dealer. And they sell numismatics as well, and bullion. And he said, You know, I’ve got to talk to you today. Because, you know, the Federal Reserve, the government, Congress, Iran, Iraq, you know, all this means that gold is a mess, or gold is great, and you know, everything’s a disaster, blah, blah, blah, we’re gonna lose the reserve currency status, etc, etc. And I said, Okay, stop, please stop selling me, I’ll buy your gold, Okay, I’m gonna, I’m gonna go and I’m gonna send you a cashier’s check tomorrow. And you sell me these gold coins. And I think 12 of them for around five grand. So there’s your price. Okay, about $420 an ounce at the time. And I stopped selling me. I just have a couple questions for you, sir. So the first question is, look, I like investing in income property, because with income property, I can finance it. I can get 30 year fixed rate debt at artificially low interest rates, in fact, arguably below the rate of real inflation. Can you finance my gold for 30 years? And he says, No, we don’t offer financing. And I said, Okay, I’ll pay cash fine. And then I said, the other thing I love about my income property is that I can rent it out to somebody else. And I can literally take the debt I have on it now. You said you won’t finance my gold, so that’s fine. I’ll pay cash. But if I have debt on the property, I can outsource that debt to someone called a tenant. And not only can I have them pay the debt, they’ll even pay me a little extra every month beyond the amount of the debt so I have some positive cash flow. Can I rent my gold coins out? Anybody? And he says, No, I don’t know of anybody who rents gold coins. And I said, Well, okay, fine. And, and you know, just there alone, there are other dimensions to it in comparing it. But you know, I just don’t think I mean, I agree with you that gold is money, you’re probably gonna say that. And many gold. Listen, I own some gold and some silver. And I think I’ve got some platinum and palladium hanging around still too. But you know, I just don’t I don’t know, I just, I’m not I’m not a bug.
Paul Mladjenovic 55:34
Be one reasons you probably never heard before. Possibly.
Jason Hartman 55:36
Yeah, yeah, please, because I’ve heard all the reasons that are no normal one. So tell me some new ones. Yeah.
Paul Mladjenovic 55:41
First of all, you know, what’s interesting is that the James Rickards, who has a you know, who’s a currency expert, I think he’s great. And he said, that part of the reason why gold retains you know, it’s a lot over the years is that it’s portable wealth. You know, in many cases, right now, we live in a time when there is established borders. But over the centuries, sometimes you had wealthy people, when the hordes were coming, whoever they were, okay, and they had to flee. You know, in many cases, they had a third of their wealth in real estate, a third a wealth and gold, and a third of their wealth, like in, you know, businesses, other interests, etc.
Jason Hartman 56:18
Listen, people coming out of, you know, like, a friend of mine was building doing a real estate development in Vietnam. And he said, people would literally come in and buy properties with gold in their suitcase. And, and, you know, that’s how it is in some of the world for sure. It’s portable.
Paul Mladjenovic 56:37
And so the point is this. The reason I mentioned this is, look, I’m not an all or nothing guy, I’m not saying people, people should be all in one or the other. I do preach diversification. And let me just give you the one reason why I think that gold and silver should be a portion of somebody’s investable assets in real time. 2015. I may tell you it to get rid of it five years from now, I was not a gold bug during the 1980s and 1990s. Because it wasn’t necessary, then, you know, in some, in some times some investments are better than others, and vice versa. In today’s marketplace, in today’s economy, Jason, all I tell people is that gold and silver are among the few investments out there that do not have counterparty risk. In other words, there is no liability against it. And that’s the diversification, see, stocks can go to zero. bonds can go to zero. currencies can be inflated, and they can go to zero. Real Estate has its own unique risks involved as well, that but so the point is this, what is the true diversified person half, let me ask you something, Jason, if you saw investor a, they had 100% of the money in real estate. And you saw investor B, who had 80% in real estate and 10 and 20%, in say, cash and gold, which one you think will be much, much more resilient? In the case of a crisis?
Jason Hartman 57:59
Well, you can’t ever put 100% of your money into anything, you’d be foolish to. Because, because, because Hang on, because for the real estate, you need to have some reserves, because if you have vacancies or repairs, you need to have a contingency fund for that. So we always recommend people have that, of course, yeah, but but the nice thing about the real estate is that hopefully, you don’t really put much money into it, because the bank puts most of the money into the deal. You know, ideally, you know, you use leverage prudently and carefully, of course, and you have the bank putting up four fifths of the deal. Yeah, 80%. So you get to you get to be five times bigger than you really are, you know, it’s like, I liken it to this, this metaphor of everybody’s, you know, been in this position at one time or another in their life, when they were kid, they kind of remember maybe the first time they discovered it, but the sun is setting, and you look on the other side opposite the sun, and you see your shadow is very long, and it’s much bigger than you are. And that’s really what leverage does. And income property being the most debt friendly asset, you can cast a big shadow, you know, you can control a lot more, you can control five times as much at least generally, you know.
Paul Mladjenovic 59:21
And by the way, just for the record, in my family, we own we own positive cash flow real estate as well. That’s part of our mix as well. So again, cheer you on, you know, so I think for the most part, when people hear us, I think they hear a good idea that look, you need a little bit of everything, especially in today’s precarious environment.
Jason Hartman 59:31
Yeah, yeah, I think so too. And the portability of the gold is really interesting. I mean, certainly with your background and Yugoslavia and other people that have come from other countries. And, you know, I’ve heard stories of people leaving and fleeing Iran, for example, with you know, they could only have some jewelry, literally on their neck, and some gold stuffed into some pockets and, and that’s all they left with, you know, they couldn’t take their real estate with them. They couldn’t take their business with them, you know, so
Paul Mladjenovic 59:58
And you never know what political risks are going to happen in that jurisdiction. I mean, you know, there was people who had probably some great income properties in Detroit 20 years ago, you know, and you see, you see how politics can muck up a jurisdiction? So
Jason Hartman 1:00:12
No question. No question. I say, I like to say Detroit is the poster child for big government disaster. You know.
Paul Mladjenovic 1:00:19
If you see it, definitely, and I think in the next year or two, there’s there’s some other cities out there that are vying for. That are competing for that, for that coveted title, I’m sure.
Jason Hartman 1:00:30
Yes, they are. Yes, they are my friend.
Paul Mladjenovic 1:00:31
As long as you and I are not there. At least we can watch from a safe distance.
Jason Hartman 1:00:37
Absolutely. Give out your website and tell people where they can find you.
Paul Mladjenovic 1:00:39
Oh, Ravencapitalist.com. Right now it’s under upheaval right now for the moment, but people can find me on LinkedIn, they can do a search for me. They don’t have to spell out my name, because it’s not a household name, not even my own household. But I wrote stock investing for Dummies. I wrote micro entrepreneurship for dummies, I did a book called zero cost marketing, how to do marketing, even if you don’t have a budget, but people can easily find me bereaving capitalist.com is a great place to start. And hopefully by the time they see this, they’ll see a lot more of my seminars, and programs to help educate them on building wealth.
Jason Hartman 1:01:12
Good stuff. Thank you so much, Paul. It was great talking to you.
Paul Mladjenovic 1:01:14
Jason, you’re a phenomenal interviewer. I wish you and your entire audience great success. And thank you for having me.
Announcer 1:01:22
I’ve never really thought of Jason as subversive, but I just found out that’s what Wall Street considers him to be.
Announcer 1:01:30
Really. Now how is that possible at all?
Announcer 1:01:33
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.
Announcer 1:01:43
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.
Announcer 1:01:54
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.
Announcer 1:02:05
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.
Announcer 1:02:15
And unluckily for Wall Street. 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.
Announcer 1:02:30
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.
Announcer 1:02:45
We can pick local markets, untouched by the economic downturn, exploit packaged commodities investing and achieve exceptional returns safely and securely.
Announcer 1:02:56
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.
Announcer 1:03:03
And this set of advanced strategies for wealth creation is being offered for only $197
Announcer 1:03:10
To get your creating wealth encyclopedia book one complete with over 20 hours of audio go to Jason hartman.com forward slash store.
Announcer 1:03:20
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. exclusively.
