In this solo episode, Jason Hartman talks about the censorship that has been happening almost everywhere. His topic also includes the rise in the number of centenarians and its effect on real estate investors. Jason also shares his thoughts on China’s situation and how to get US dollars in a time of crisis.
Announcer 0:02
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 0:54
Welcome to Episode 1646 1646. And you are stuck with yours truly today? Yes, I have a bunch of random, but very important things to catch up with you on so we need to catch up, folks. We don’t talk enough. It’s only three days a week now, Monday, Wednesday, Friday. And then of course, we did have a live stream this morning. And I am happy to announce that our our pseudo government, the government, where Mark Zuckerberg as president has, after sending me to a reeducation camp has agreed to let me live stream again. Oh, I’m so thankful. I just I just want to kiss his feet. I want to worship our king, Mark Zuckerberg, because it’s just such an honor now that I’ve been re educated. And I’ll make sure that I don’t talk about the, you know, that thing where people go in? Oh, I can’t say what they do. But you know, they like, well, they don’t, it’s not the V word. They they cast a B in Well, you know, like a ballad. I hope I hope the algorithm didn’t pick that up. Because Tim Cook, the other God that we must worship, who who I used to revere and really have a lot of respect for But hey, that’s all changed. Because he has now turned into a nasty censorship guy himself, and has been very outspoken that he is going to decide what he believes is true, versus letting you decide what you believe is true. Wow, imagine that. And you know, Zuckerberg and jack Dorsey. And even Jeff Bezos, of course, you know, he bands books. Isn’t it great that Bezos is stepping down? I mean, you know, he’s, he’s spent a tyrant. Granted, you know, we all love being a customer of his company. But try being a seller, with his company, and you’ll experience a lot of abuse under under King Bezos.
And, you know, like, like all of these people, they talk all about equal opportunity and all these politically correct things. Yet, I don’t know why Bezos has handed over the reins of his company to a white male, who’s might even be a Christian. Oh, my God, what a sin. I mean, you know, they, they talk about all this stuff. But just watch what these hypocrites do. Watch what they do. They don’t do they don’t do anything. They tell you you need to do. It’s just unbelievable. But anyway, so we did a live stream this morning. And we were on Facebook. But yesterday, YouTube took down another one of my videos. dare speak about the the the event that happens in November, where people do this thing and they try and pick who their leader is going to be. You can’t talk about that. No, no surgery. No, ma’am. No talking about that. Totally forbidden. So suffice it to say, if you want to hear the real content, you can find me on bit shoot and rumble. And you know other places like Odyssey where they don’t censor you because there are actually some some people that are ethical, who believe in democratic ideals who believe in free speech. But everybody on these platforms is now walking on eggshells. They’re all tiptoeing around censoring themselves. Yes, self censorship is the best kind of censorship, because then you never hear what you don’t hear. And you don’t hear anybody complaining about how they got d platformed. How their videos are getting taken down how their books are taken off of Amazon. You know, it used to, you know, we used to have the Nazis we used to have Chairman Mao we still have Joseph Stalin, and all these evil oppressors pol pot. While we still got Kim Jong Hoon. We have Fidel Castro until recently, we used to have those people who would burn the books that you heard about in Fahrenheit 451 by Ray Bradbury, a must read.
And also 1984 by George Orwell, I probably can’t even speak these titles anymore. I’m actually surprised you can still get them, you better just get your copy of these books before they go away. Because they are on the verge of vanishing. I just guarantee you, it’s gonna happen. They’re gonna just be out of print. Or they’ll find some way to make it hard to get these these books. We used to have like the book burners, right? You know, the Nazis were famous for burning books. But now we have Jeff Bezos, Mark Zuckerberg, Tim Cook, jack Dorsey. Who else did I miss anybody? I don’t want to miss anybody. Oh, we got Netflix. They they basically burn books, too. You know, they, they have to decide what you’re allowed to see on their platform? Yes, of course. Wow, folks, it’s a it’s a scary time for democratic ideals. It’s a scary time for democracy. It’s a scary time for freedom of speech. It is. But the good news is it is an amazing time to be alive. And guess what? centenarians? Yes, those folks over 100 years old, are becoming much more common. I’m looking at a chart right now, that says the number of people worldwide who are over 100 years old, has now reached 573,000. There are 573,000 people in the world who are over 100. They’re in the triple digit club. Now, the question you must be asking, is, I hope you’re asking, Are you asking the Jason Hartman question? Because that’s the question. It’s always the question. And the Jason Hartman question, of course, is compared to what? Well, it sounds like that’s a lot of people over 100. But compared to what? Well, just as recently, as 20 years ago, there were only about and you know, the numbers not exact. So I’m trying to interpret the chart. And I unlike, unlike the big tech companies, unlike the Communist Party of Silicon Valley, I will interpret the chart in the real way. I will not have the fact checkers interpret it based on their opinion, which is fake facts. I will interpret the chart by just telling you what it basically says. So 20 years ago, there were only 130,000 ish ish, approximately people in the world, over 100 years old. And now 20 years later, just 20 short years later, two decades 573,000. Folks, that is absolutely staggering, amazing. Unbelievable. It is supercalifragilistic expialidocious. And I think we ought to all just just give that some Cheers.
Let’s give it a little more compared to what and by the way, you might be asking, what does this mean to us real estate investors? Well, it means a lot wide ranging effects on government on entitlement programs on housing needs on inflation. This is big news. This is big, big, big time for real estate investors. Yes, it is. Okay, let’s do another compared to what? So 20 years ago, we had about what about one third? The number no one fourth, the number we have now? Right? Less than one fourth. But guess what? If you just go back, let’s go back to 20 years before that. Let’s go to 1980. And in 1980, the number of people worldwide over 100 years was a meager a tiny, a teensy weensy 40,000 people. Wow. So this just it shows to go you have folks that chose to go Yep, that there’s a lot of people live in a lot longer. That’s really good news. Let’s do one more comparison and let’s go 20 years before that. Let’s go back to 1960 when closed, it’s not exactly when but it’s right around the time that someone said, we will put a man on the moon and return him safely back to Earth within this decade. And by golly, we did it. We did it. That was that was back when America was really great. It ain’t so great now. But you know, that’s when we used to actually build things. Now we just have software eating the world, which, you know, software is good, too. But problem is we have a few big players controlling at all. And that goes back to my prior comments. Okay, but in 1960, we had and I can give you an exact number here, because it’s noted 20,119 people over 100 in 1960. So you can see that this is absolutely unbelievable.
Okay, now, let’s think about what this means for just a moment. When governments have to support these older people who mostly aren’t working, and they are getting government support, and that’s fine, they deserve it. For sure. Right? That means that governments and a lot of countries or actually just whole regions of the world, are having ginormous struggles with this. Why? Because there’s no birthrate, these populations are just going extinct. Western Europe, Russia, Japan, soon to be China. Okay. That’s why I don’t think you know, someone asked me when I gave that speech last week, they asked me what I thought about the China situation, you know, is China really gonna become the number one economy? Is it gonna overtake the US? blabbity? Blah, you know, is there gonna be a war with China? And I watched a really interesting video on that this morning, about what what would world war three look like? It was pretty interesting. And the upshot of it was that, let’s hope there’s not a world war three, remember Einstein’s famous quote, he said, I don’t know how they’ll fight world war three. But I do know how they will fight World War four, with sticks and stones. Meaning that we would annihilate ourselves and go back to the Stone Age, right? So do I really need to explain that to you? No, why don’t? Jason, why are you explaining this to people who have sophisticated listeners in your audience? These people are smart. They get it? They understand Einstein, no problem. Okay, so maybe I’m over explaining. But you know, I’ve, in my lifetime, I’ve had a few girlfriends that were school teachers, and you know what they always say? You always teach to the middle. Now, I don’t know if that’s actually a good idea. Okay, but that’s what they that’s what they’re taught, I guess, when you’re when your school teacher, I guess maybe I don’t know, school teachers reach out, go to Jason hartman.com. Slash ask and let me know about this. But what I always heard is you teach to the middle, and you know, and then the people below the middle in the bell curve, they’ll get it, they’ll understand what you’re saying. And the people above will easily understand it, right? Because they’re super smart.
So anyway, I don’t know, for whatever it’s worth. So I’m just trying to make sure everybody gets everything. Right. Okay, so a lot of people over 100. What does this mean, when you don’t have younger workers to support them and to pay for them. And when you have a social security system, or whatever system you have in whatever country you’re in, it is essentially a scam. I know what it is in the US. I don’t know if it’s a scam everywhere. But our Social Security is a scam, scam, scam scam. And there’s, you know, in the US because of immigration, at least we have, you know, people supporting the older workers, right. But, you know, the politicians have have raided the Social Security system. So, even if we do have younger people paying in through taxes, you know, it’s it’s not going to help much here and around the world. I don’t know what the scenario is, but I know they don’t have enough younger people paying in. So of course, Western Europe, Russia, and China, but they’re a little bit behind. But, you know, 10 to 15 years, you’re gonna see it. Okay. That goes back to my prior remarks about China. I don’t think China is going to take over the world. I’m not that bullish on China. I’m not concerned about China taking over the world. They are doing certainly some incredible things. But they have a population time bomb that is going to start really becoming apparent in 10 to 15 years because of the one child policy. Just remember, as I’ve always said, folks, if you want to have a country, you got to have people. If you don’t have people, you don’t have a country period. End of discussion, full stop, Japan cannot continue to be a country, China, Western Europe, meaning all the countries in Western Europe, you get it, Russia, you know, these countries are going extinct.
You can’t have a country if you don’t have people. So that’s the problem. So when you have this imbalance, where you have all these people aging, now, maybe Bill Gates can change that. Maybe he will find a way to extinguish a large part of the human population, scary thought. But hopefully, you’ve seen the TED Talk, where he stumbles about 27 minutes in, it’s not a conspiracy, the words came out of his own mouth. And he made a mistake. And he tried to walk it back. But it was apparent the mistake he made in that notorious Bill Gates TED Talk, where he wants to reduce the population. Of course, the Rockefellers have been, you know, obvious about this, too. So, you know, there are people that want to do it. Right. So this is not some wacko theory. It’s, you know, there, there are definitely people I mean, look, listen, that great book that I’ve encouraged you to read called the bet, which was about Ehrlich and Simon, the, you know, the big bet that they had and how they wanted to reduce the population and, you know, this Malthusian ethic and to the world, blah, blah, blah, you know, never never comes, they’re always wrong. But there are still people that think that, you know, the Earth is overpopulated and we got to reduce the population. So it’s imbalanced in many countries where you don’t have enough younger workers paying taxes paying into the system to support the older one. So what does that mean? It means inflation. It means inflation, because the government’s have to create fake fiat money to pay, and they have to inflate their currency. And as real estate investors, we know, we can get the double inflation arbitrage. We know we can get inflation induced debt destruction. And we know that just from a simple perspective, our real estate assets, our income property assets, our inflation indexed, so we’re gonna do fine. This is great news for us. And hey, you know, it’s great news just for humanity, that people are living longer, there’s a lot more people who are able to celebrate their 100th birthday and get, you know, three numbers on the cake, three digits on the cake. I think it’s awesome. Some people don’t like it.
But I think it’s a wonderful, wonderful thing. And hopefully we’ll see human lifespan extended even further. And of course, there’s an app for that. Now, there’s not an app for it. There’s a show for it, though. It’s called the longevity and biohacking show. And that’s one of our shows, so you can check it out wherever you get your podcast. All right. So that is pretty exciting news, a lot more people living a lot longer. But it also has huge impacts for the economy, for housing demand for inflation, and government entitlements, and all sorts of stuff. But it’s all good news for us as real estate investors. So we love it. Bill Gates be damned. I guess he doesn’t like it. Another guy, we probably have to, like kiss his feet. And you know, he’s probably gonna send us to reeducation camps to if we complain about his vaccine or anything. Okay, so let’s get to some more of these comments and questions. We only got one, Monday. But today, I’ve dedicated a little more time to cover some of these because I really got to catch up. And I love your comments. So send them in, go to Jason hartman.com slash ask if you’re connected with any of us on voxer. You know, leave us a message with your comment. You know, it’s best to say your your first name and the city you’re located in people always kind of like to hear that for context. And make a comment, ask a question. Tell us you love the show, tell us you think we’re crazy. Or maybe just me, not us. Tell us You think I’m crazy. You know, whatever you want. And we will always love your feedback. So here we go. Let’s take a couple more of these and let’s go down the rabbit hole.
Listener 19:06
On a separate topic, you know, in your show, you mentioned a lot about how there’s really no no viable alternative right now to the dollar as the reserve currency of the world. You know, your your famous question compared to what always comes up and you know, I’m looking at a really interesting article right now in the South China Morning Post the title of it and I’ll send you the link after this but but the title of it is rush for US dollars forces Hong Kong money changers to turn away customers in droves after supplies run out. I just think it’s really interesting because the first thing that people are thinking about is how do we get us dollars in a time of crisis. That’s their first default for better for worse. So if you know people are saying Well, US reserve currency status is up in question. It’s like, well, it’s not really what the common practices are telling us. It seems like everyone’s looking to the US as the means of security here.
Jason Hartman 20:13
Yeah, they did. They definitely are. That’s Johnny from Virginia, and no question about it. He’s absolutely right. The dollar Listen, you know, everybody wants to I, you know, I think, because the United States has this tradition of free speech, it is the first amendment to our governing documents, right. And free speech is allowed in the country, it’s just not allowed by the Communist Party of Silicon Valley. Okay, so the tech companies don’t allow free speech. But, you know, the Constitution allows it. So people are outspoken to criticize the government criticize the dollar, all of this stuff, I, you know, I’ve been to 87 countries, I’m an avid traveler. And so, you know, I don’t hear this kind of stuff in other countries as much. Now granted, I, you know, not as deep in those countries, obviously. But, but, you know, I just think it’s kind of the tradition in the US that we we really do criticize our government a lot. And our government’s main product is its currency, its dollar. Okay. But compared to what I mean, what else are they going to do? Yeah, maybe there, of course, there’s this like libertarian movement for cryptocurrencies I get it, you know, I hope it happens. But I just don’t think the dollar is going to be displaced by anything. Other than maybe another government and cent and Federal Reserve backed currency. And it might be called, you know, the marrow, it might be called the digital dollar, it might be called the, you know, the Federal Reserve Note, or, you know, whatever it’s called, it doesn’t matter, this idea is the same. And the likelihood is that the dollar or whatever US government sponsored currency is will continue, albeit it will be inflated away in value, no question about it. But the dollar has, regardless of what anybody says, it has a lot behind it. And it’s not just gonna arbitrarily go away. So if, you know, there’s that old saying, never bet against the Fed. And even now, even with the massive amount of currency debasement that took place in the last year, this printer run wild money printer run wild, still, you know, the dollar has a very strong foothold.
Listener 22:37
Which was really good. Thank you for that and everything. And I just reached out to be no, yeah, I really appreciate all you do. I mean, this is I’ve been kind of a novice investor in real estate for five, six years. But yes, thanks to your content. And all this, I really feel like, you’ve really helped me shortcut, a lot of things and just do this a lot faster. And also just the introduction of great people to trust that comes along with that. Thank you, for all you do.
Jason Hartman 23:08
Okay, so what he’s referring to, and you know, I don’t know who that is now, because the message was so long ago. But he what he’s referring to is we referred him to a 1031 exchange company. And, you know, one of the big things that you’ve got to do as a real estate investor, and you’ve probably heard this before, is you’ve got to have a team. There, there are a whole bunch of experts you’ll need. And we’re kind of your one stop shop, to provide a team for you, a team of people, lenders that specialize in investment property financing, sellers that have vetted investment properties, property managers, 1031, exchange people, we can help you with self management of your property, and our own team that is area agnostic, and can help you invest nationwide, and help you really evaluate different opportunities from an area agnostic perspective. Remember, if you talk directly to a broker or a seller in any given market, or that has any given property that they’re trying to sell, you’re not going to get any sort of objective advice. I mean, look at our only goal is to have you invest, listen, that’s how we make money. We like money. We’re capitalists over here. But you know, we don’t care where you invest, we just hope you will do it through our network. And so if Florida is the right market for you, I mean, we have many cities and all of these places, right? Or if if Tennessee or Alabama or Texas or North Carolina, or Pennsylvania or you know, whatever any of these markets or Indiana, you know, we can help you invest in all of these different markets around the country and we can provide you objective area agnostic advice. And not only in terms of the market, but in terms of the specific properties. And in terms of the specific sellers, and the vendors and the providers. So we’re really a one stop shop for all of that stuff. So that is why we’re here. So take advantage of it. You know, we get paid by our referral partners. And, and so you know, it doesn’t cost you anything. So definitely avail yourself of these opportunities.
Listener 25:33
I’ve been a client of yours for years now. Far you guys do great work, and provide to your clients. I’m working with Gary was great, by the way.
Jason Hartman 25:47
Okay, so let’s hear the next comment. Great. I’m glad we could help you, john. And let’s go on to the next comment or question.
Listener 25:56
Personal Co Op here in Brooklyn, in the building is doing well, we had a board meeting, and the President of the management company was in the zoom call, it’s kind of really interesting. They manage a lot of buildings in New York City. A lot of rental buildings, and I haven’t followed this stuff, you know, with all the crazy developments with all these socialists coming to power. But it’s been getting progressively worse, like really progressively worse from the point of view that the socialists, they creating all kinds of Mission Impossible. On the landlord’s making it more and more difficult.
Jason Hartman 26:30
By the way, I want to tell you, the person who is speaking, you’ve heard him on the show before. And he grew up in Eastern Europe, under communism. Okay, so that’s, that’s kind of his perspective. But he’s talking about these new york co ops and these buildings and how they’re managed. So there’s some interesting lessons in here for us real estate investors,
Listener 26:52
including, basically people are required to make buildings completely lead free. Even though these old buildings from many years ago, it’s almost impossible to do extremely expensive with no real benefits that lead paint dry. Useless.
Jason Hartman 27:10
Yeah, what he’s trying to say. So look at I believe it was 1978, that led paint was outlawed. So you could you could you couldn’t buy led paint, I believe after 1978. You know, if someone had some, and you know, it was a year old, they could still paint the building with it, I believe. That was the demarcation point. And if the lead paint is on the walls and undisturbed, it’s no problem. Okay, lots of old houses have led paint. But you know, as long as you don’t chip the wall and start eating the paint chips, you’re going to be okay, so, so now, they’re instituting all these new requirements. And guess what else I just heard about New York City. They’ve got a new requirement, I think AOC wants to implement, or she’s introduced a bill or something. I don’t know, forgive me. I don’t know the details. But But basically, they’re saying, every building, it’s over 40 feet tall, which mean, in New York, that’s the vast majority of the buildings, right. So, you know, four storeys, 40 feet, basically, right, about 10 feet a story would have to retrofit and add fire sprinklers. I mean, do you know how much that will cost? That is absolutely staggering. The cost of that it’s prohibitive, you know, you just can’t operate in that environment.
Listener 28:32
So let’s keep listening and learn from this risk years ago, but now they’re pushing more regulation. So what I heard is to something staggering, that first of all, the prices were completely out of whack. Initially, they were just way too expensive. You’re paying for these old rental buildings, in prices. And recently with due to all these conditional requirements, they become less and less profitable. In fact, it become a significant money drains losers. And landlords are ignoring these buildings, not investing in them, and basically milking them improperly, they’re going to go to foreclosure.
Jason Hartman 29:05
That’s exactly what rent control does. And that’s what big government does. It causes the landlords to lose interest in their properties. I mean, why should they upgrade them, they’re not going to get any more money. And you know, they’ll just get whatever rent they can out of it. And what he’s saying is, many of these landlords will just let the properties go. And this is what happens when you have political risk. All right. When you invest in these business, unfriendly areas, in these landlord unfriendly areas, in these democrat run areas, you have significant political risk. With your investments, they can change the entire nature of your investment, by passing some crazy new regulation or law
Listener 29:56
is much appreciated in New York. Some of the assets are actually falling in price as a result of the socialist government making it impossible for the lower level landlords to the Toronto make it very difficult to unprofitable business. So it’s gotten completely crazy. From again, all kinds of regulations to various local laws that they come up. And then on top of that, very difficult evictions, so kind of really, really interesting stuff. And a lot of these landlords are multi generational families who’ve been running this building as well. They just never sold them, and they’re passing through to the kids. And it’s a big issue now. Because it’s very difficult to pay all those things that the city wants landlords to do, in turn a profit. So the prices on these assets have fallen as a result of this craziness. So I think it’ll be an interesting discussion for your, for your audience. Maybe we could do a podcast episode again, I’m not saying your city’s volume price. Other than specific rental lessons, the older properties, these type of issues where the city just I don’t know what the city wants to think the city wants the following. They want the landlords to go out of business, the banks to foreclose. And then they did this years ago thing in the 70s. They had these assets converted into some kind of CO Ops, they want the residents to own these buildings, socialistic structures, what itself is sort of a socialistic structure. It’s not exactly but they want the landlords to get a piece of the building by virtue of landlord failing banks taking it. And then banks coming to the table with the with the occupants and come up with something. Anyway, it was it was an interesting discussion. When I heard it is like, well, boy, this is socialism. accelerated socialism in the New York probably similar things to happening in Illinois, California, Socialist Republics destroying local businesses, the economy, and ultimately, its politicians. But in the meanwhile, they just want more fees for the city, more regulation, more corruption. And then they, they empty the city coffers, through controlling the expenditures with their friends and family and then their buddies. It’s just it’s a corruption, more power to the city more prepared the bureaucrats and more harassment by the bureaucrats that that’s, that’s what happens at the end of the day.
Jason Hartman 32:40
Yeah, that’s basically, you know, that’s, that’s what big government does, right? It runs the businesses out, and then it comes in to solve the problem. So they can be the people on the white horse that solve the problem they created. And, and they can look like heroes. But we know that never works out. Okay, here is a message from one of our investment counselors.
Listener 33:03
The interest rate is just something you can’t standardize for many reasons. Okay. One is, it depends on the loan amount. So I have gotten some quotes in the back 4% for over 200,000. And then if you go, you know, and then if you go 100,000, it goes up, the percentage goes up, then it depends, are you putting 20% down, or 25%, we can’t standardize that because some people have too many loans to put 20% down, so we tend to go with 25% down. If you put 20% down, the rate goes up even higher, if you put 25% down, you get a better rate, then, of course, the individual ability to borrow, you know, your interest rate might be different than my interest rate, depending on what you’re doing to debt to income ratio is how many properties you have, etc, etc. So, okay, that’s one that’s just one part of it, then the other part of it is rates literally change on daily basis. They fluctuate up and down. And then the other thing you could do is you could do a rate by down. So on the podcast, I talked about, you know, my three refinances, I bought down all those rates, and got them into the threes. So you know, I put all those performance at 3.375 and increase it, you know, out of pocket expense for the loan.
Jason Hartman 34:25
By the way, rates have actually declined since she left that message. So they’re even better now. But basically what she’s saying, and I just wanted to share that on the podcast is, you know, it depends whether you’re putting 20 or 25% down, you get a better rate when there’s more security when you have more equity in the property. So that fluctuates Of course it fluctuates based on your credit score, your debt to income ratio, a whole variety of factors, and you can buy down the loan. So let’s just talk about buy downs for a moment. A buy down is where you Pay more points alone point is 1% of the loan amount. And a point, or points in general are nothing more than pre paid interest. So you pay an interest rate, right, so you’re paying just for round numbers sake 3% interest on the loan, if you pay zero points, then we would call that at par, okay? Meaning you didn’t buy anything down. But if you want to pay one point, you could buy your interest rate down a little bit. If you pay two points, you could buy it down a little bit more. If Well, they’re not really points credit back, they’re not really doing that right now that I’m aware of. But in the old days, they used to, I’ve owned a few mortgage businesses over the years. And sometimes they even pay you points and you take a higher rate. And some people will do that occasionally. But just understand that points are nothing more than prepaid interest, you’re just paying some of the interest in advance. And here’s where it really makes sense to do that. Our philosophy is a buy and hold philosophy. Now, you know, you might sell your properties 1015 years in, you might keep them for the full depreciation schedule 27.5 years, it depends, you know, you’ve got to look at what’s going on in the market, what’s going on with your personal life, what’s going on with your own portfolio, maybe you want to sell properties, because you think there’s better opportunity in another market, or maybe you’re doing what I’m doing, which is trying to diversify, right. And I’ve made, I’ve readily explained many times on the show over the years, that one of the mistakes I made as an investor is I over diversified. And we don’t want you to do that don’t make the mistake, you know, the reason you’re listening to me is to avoid the mistakes I made.
Okay. And, you know, I certainly had a ton of success. But I’ve had a few mistakes too, for sure. And so, you know, I was in 17 cities and 11 states, that’s too much diversification, we just want you to be in three to five markets. That’s enough diversification, don’t be in one or two, you need to be in three to five markets, okay, so you could be too concentrated, or you could be over diversified. So one of the things I’m trying to do is reduce my diversification, I just want to be in like three to five markets. And I’m in I’m in still in too many markets from those old properties I bought, you know, 1516 years ago. So there are many reasons that you may or may not want to sell properties. But one of the things is when you buy the loan down, remember, you’re paying a point now, to get a lower interest rate for 30 years. And usually, and your investment counselor on our team can help you do the math, it’s really easy to do, where you just calculate the time horizon to the breakeven point. So if you pay an extra point 1% of the loan amount, say that costs you 15 $100. And if it saves you just for round numbers, I’m not doing any real math here, just as an example, if it saves you $50 a month on the mortgage payment, that’s $600 a year. So that’s going to be what just over two years before you’re going to reach the break even point, it’s probably not going to be that good, it’s probably going to take you about three and a half to four years to reach the break even point. And after that you’re benefiting from it. So you just got to commit to keeping the house long enough to get that buy down paid back. And it’s usually a very good deal. A lot of our investors do it. Okay, we are already into this a long link.
So let’s wrap it up for today. We’ve got Of course, several webinars going on, you can check those out, reach out to our investment counselor, if you want property profiles, if you want to learn about our empowered investor inner circle, which by the way, we had such a great, very intimate, small meeting on Monday, what we’ve done now is we’re offering all of the courses or the monthly calls that we do the monthly zoom meetings where I host those, and you can ask me questions, and we have a specific topic and focus of it. But we now are having those available in recorded format, just in a beautifully accessible format, where people can get those all in recorded. So not as many people are coming. Imagine that because they’ll just watch the recordings. But it was really nice to just have such a small intimate group and really be able to talk to people. And you know, one of the things I can do in that group is because it’s not broadcast to the whole world like this is with people in 189 countries hi out there. I can really speak maybe a little more frankly sometimes. And then someone asked me a great question about, you know, one of my prior show, guess you know about what that person is publishing versus what I’m saying. And I could really speak frankly, but I can’t always do that on the on the public forum like this, right? So join our empowered investor inner circle. It’s just a great group. And by the way, Scott, who’s one of our members just posted this today at 3:02pm. So Scott, I’m going to share what you said, he says, to Jason and the team, I wanted to thank you for all the new value you are adding. And this is to the empowered investor inner circle. I’ve been looking through the videos on kajabi. That’s our course platform, and the new education tab inside of property tracker, outstanding to bring the information together like that. And I know it must be a ton of work. Thank you.
So if you’re a property tracker user, also, by the way, we’ve enhanced that dramatically. So go into property tracker, click on the brand new education tab, right at the top. And there’s just a ton of content there. There’s a whole knowledge base videos, just all kinds of stuff, we’re just going to make these memberships so valuable. And with the empowered investor inner circle, you get a one year membership to property tracker included with that. So if you want to check out the empowered investor inner circle, we’ve got a free informational webinar on that which also has some good education in it about self management. Just go to Jason hartman.com slash empowered Jason hartman.com slash empowered, and you can check out that webinar there and until Friday, thanks for joining us, and happy investing.
Thank you so much for listening. Please be sure to subscribe so that you don’t miss any episodes. Be sure to check out the show’s specific website and our general website Hartman Mediacom for appropriate disclaimers and Terms of Service. Remember that guest opinions are the rain. And if you require specific legal or tax advice, or advice and any other specialized area, please consult an appropriate professional. And we also very much appreciate you reviewing the show. Please go to iTunes or Stitcher Radio or whatever platform you’re using and write a review for the show we would very much appreciate that. And be sure to make it official and subscribe so you do not miss any episodes. We look forward to seeing you on the next episode.
