In this episode, Jason Hartman plays an audio recording of his show where he talks about his 10 Commandments of Successful Investing. He explains the importance of building a portfolio before considering protecting your assets and estate planning. Jason also shares the Denis Waitley poem that changed his life.
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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 thousands of real estate transactions. This program will help you follow in Jason’s footsteps on the road to your financial independence day. You really can do it on now. here’s your host, Jason Hartman with the complete solution. Real estate investors.
Jason Hartman 1:03
Welcome to episode number 696 696. This is your host, Jason Hartman, thank you so much for joining me today. I hope all of our American listeners enjoyed their fourth of July holiday. We are back and today we will have a clip from a live event we did. Several months ago in Orlando, Florida. We did a property tour and creating wealth seminar there. And today we’re going to share a clip from that and I think you’ll enjoy it a little bit of review a little bit of new stuff, Scott both in there for you. But first I want to address this question that I get constantly over and over and over from all of you listeners. And that is the question that is just a recurring theme. It is the question of asset protection and estate planning and First of all, I want to again remind you that I am not a lawyer. Our company is not a law firm. We don’t have any lawyers on staff who are doing investment counseling or anything like that. So we want to remind you that we can’t give you legal advice, but I can share my own personal experiences and knowledge with you. And I also can share a fantastic resource with you. And that is Mr. Garrett Sutton, who is the attorney who’s written several of the rich dad books. I actually on the way back from Fiji, I was listening to one of his fantastic audio books on the plane, and he’s just got some great info. He’s been on the show several times.
If you want to review some of those episodes, go to Jason Hartman calm and type his name in the search bar and that is in the upper right hand corner, just type Garrett Sutton and you can listen to those episodes in between ticular that he recorded for our audience, especially as things apply to real estate investors, to income property investors. But the other thing I want to say to you is, don’t put the cart before the horse. Some of you get so hung up on worrying about this asset protection stuff. When you haven’t really started building a portfolio, you got to have some assets to protect. So the first thing to do is get going and create those assets and insure them. Income property investors are very fortunate. The liabilities that come out of being a landlord are very low, really, overall, that old slip and fall that everybody’s worried about that all the promoters of all these asset protection vehicles would tell you, you better be fearful you better lose sleep over this. Well, I can tell you in all of these years, personally, and having Hundreds of tenants myself personally, I have never had any legal liability from a tenant who you know, slipped and fell or that anything happened on one of my properties, where I got sued and had any liability like that. So don’t worry too much about this stuff. The insurance available to income property investors is inexpensive, relatively speaking compared to other business ventures and so forth that you might engage in. It’s very good. This insurance is quite good that’s available, and we’ve done many shows on insurance. If you go to Jason hartman.com, and you type insurance, you will see a lot of shows on that topic. And there’s a lot of information. Our investment counselors can refer you to some great insurance sources to help you protect your portfolio.
But when you think of asset protection, you need to be concerned about two types of threats. One is the internal threat. Now that’s the threat that comes with what I just mentioned the liability that might be created out of managing and owning these properties. The old slip and fall concept that you know that one that never happens, but it could happen, right? Actually, I’m sure it’s happened to somebody, maybe somebody’s listening. You can call in with your insurance nightmare stories and questions. Vox me get me on voxer j Hart 88 Jay Hart 88 on voxer Vo x er, if you want to ask questions to be played on the air, we will address them there. But again, these problems are not major. The other liability issue is the external threat. One of our listeners who’s a doctor was boxing with me last week while I was in Fiji. voxer are such a convenient tool as you’re traveling especially in these developing countries and the internet. Access is very spotty. You can send your message. And whenever you hit a Wi Fi zone, it just magically goes, it’s an amazing time to be alive. Lest we get on a tangent there. But I was boxing with him. And he was asking about, well, you know, what about the liability from my profession? What if I have a medical malpractice situation? And they try and take my real estate portfolio? Well, that is known as the external threat. And the external threat can be protected against in different way.
So of course, the first thing is you would have medical malpractice liability insurance, you would have professional liability insurance for your business, right? But there are some asset protection structures that you can use and I want to offer you a fantastic free resource on this besides the podcast, of course, if you go to Hartman education.com Hartman education COMM And you look on that website, and there is a fantastic free course video that is being offered there, where Garrett Sutton is speaking at one of our events. And you can have this video for free. Yes, it’s free at Hartman, education, calm, no need to buy anything. Just quickly, put in your email, and the video will be emailed to you instantaneously. He’s the author of so many of the rich dad books, start your own Corporation run your own Corporation, the ABCs of getting out of debt, writing, winning business plans, buying and selling a business, etc, etc.
And again, you can get free access to this video. It’s about I believe, maybe 45 minutes long or so. It’s just a fantastic resource, where Garrett is speaking at one of our live events and he’s fielding some questions from the audience, as well as explaining and yeah, you know, with his PowerPoint slides and visual aids and everything. So a great resource there for free at Hartman education comm no obligation whatsoever. Check that out and take advantage of it. Because a lot of you are asking these questions. A lot of you are worried about this, and we want to solve that problem for you. Now, one of the things that happens to investors is they put up roadblocks. Yes. Can you imagine this, we as humans, put up our own roadblocks. We as humans, sabotage our own success sometimes, as investors, and we don’t want to do this. One of my early mentors that I was so fortunate to discover at age 17 was Denis waitley. Yes, I discovered Denis waitley Zig Ziglar Earl Nightingale and Jim Rohn at age 17, they became my mentors, they turned my life around. I am so grateful to them. Of course, we had Denis waitley on the show, Episode Number 150 go back and listen to that, because he’s just fantastic. And, unfortunately, his work really, it’s just not around anymore. You know, he, it hasn’t endured as I think it should, because he’s got some fantastic poems, some some just great advice for successful successful living out there. And that is Dr. Denis waitley. So I want to share with you one of his poems that I don’t believe I’ve ever shared with you before, it’s possible that I did a long, long time ago. But I’ll tell you, this little poem really, really inspired me to get off my Duff to make my life happen to go for bigger and better things. To push my limits to get out of my comfort zone, and understand that now is the time, as I always say, it is an amazing time to be alive. And I would guess that this little poem was written. I’m gonna say back in the early to mid 1980s. That’s my estimate of the the date of this poem that he wrote. And think about it. If you had been building your real estate portfolio back then, wow, think about what you would have today. But unfortunately, we can’t go back in time. We can only plan an act now. We can only act today.
If we were building our portfolio back then. Hey, congratulations. I know I was I bought my first rental property back not Too many years after he wrote this poem, and it changed my life for the better in so many ways. As I say, all of the stuff that hurts most people, all of the things, the bad news, the government debt, the fears of government spending, of irresponsible spending by government, time passing, all of these things benefit the income property investor, and they hurt everybody else. So put yourself on the side of this equation on the right side of this equation, so that you can make a better future for yourself. Because in three years, in five years, in 10 years, you will only think back to today and think, why didn’t I act then? Why didn’t I do more than maybe you were doing something But you could have done more. You could have stretched yourself. You could have gotten out of your comfort zone, you could have built a bigger portfolio. You could have become a direct investor, you could have made sure and made a commitment to yourself that you were not going to fall victim of putting your financial future in the hands of somebody else. A bunch of Wall Street Crux, you are going to take control of your life in your portfolio so that you could create a better financial future for yourself and your family. Again, that is the someday oil fallacy. The some day I’ll like I apostrophe Ll someday I will. Someday I’ll so let me share this with you before we get to our clip from a live event today and it’s by Denis waitley One of my early early mentors, and it goes like this. There’s an island fantasy a someday I’ll we’ll never see where recession stops, inflation ceases our mortgages paid and our pay increases, that someday I’ll wear problems and where every piece of mail is from a friend. We’re all the nation’s can go it alone, where we all retire at 41 playing backgammon in the island sun. most unhappy people look to tomorrow to erase this day’s hardship and sorrow. They put their happiness on layaway, and struggle through a blue today. But happiness cannot be sought. It can’t be earned, it can’t be bought. life’s most important revelation is that the journey means more than the destination.
Happiness is where you are right now. pushing a pencil or pushing a plow, going to school or standing up Line watching and waiting or tasting the wine. If you live in the past you become senile. If you live in the future you’re on Sunday I’ll the fear of results is procrastination. The joy of today is a celebration. You can save you can slave trudging, mile after mile, but you’ll never even set foot on your Sunday aisle. When you’ve paid all your dues and put in your time. Out of nowhere comes another Mount Everest to climb. From this day forward. Make it your vow, take Sunday oil and make it you’re now. Wow. Isn’t that a phenomenal life lesson for all of us? Yes, it is. Don’t procrastinate. Enjoy where you are today. Be grateful for everything you have and build on that. But do it now. Do not wait. Don’t wait. Put your happiness on layaway. Start today. That’s the thing we’ve all got to do. So go to Hartman education comm get your free video of Garrett Sutton speaking at one of our live events, just scroll down toward the bottom of the page. I think you’ll really enjoy that free video. It will answer a lot of your asset protection and estate planning questions and help you in them. Check out some of the products there as well at Hartman education calm and look forward to our next episode.
We’ve got Chris Mayer, author of invest like a dealmaker. He writes the capital and crisis newsletter. And next week after that, we’ve got Shane Sauer on the show, talking about finding stable rental property neighborhoods, we’re going to dive deep into a service called rent facts. And we’re going to talk about buy downs. We’re going to talk about mortgage buy downs as well. So I think that’ll be great for you. That’s what’s coming up. But right now, let’s get to a clip from one of our recent live events. 10 commandments of successful investing, thou shalt become educated duh, obvious. I remember my mom a long time ago, going to these real estate seminars. The story goes like this. And since she’s in the room, let’s see if she disagrees with me. I saw an infomercial when I was 16 years old. I went and got the Guru’s book in the infomercial, I read three chapters, I put it down, my mom picked it up and read the rest story so far, because I’m telling this story a lot. So if you disagree with me, you know, and then two years later, I’m 18 years old. I’m about to graduate from high school. And my mom says, you know, Jason, you got me interested in this real estate thing. I’ve been going to seminars and reading books for last couple years. Now there’s this big seminar in Anaheim by Disneyland, the sister By the way, Disney land has more than Disney World. I thought it would be the other way around. Do you know what you’re missing? You’re at Disney World. You don’t have any submarines. And you don’t have a matter horn. Disneyland has that. I just figured that out yesterday. What a jep. Yeah. So but you do have Wi Fi. That’s a huge attraction.
Okay. So she told me go to this seminar. You know, it was a free seminar in Anaheim. It was one of those pitch fests where all those people were up there selling their books and tapes. They were actually tapes on cassette. You know, cassettes are Yeah, you do. Okay. So but some people don’t. So I go to this thing. And oh, no, before I go, I had to round up nine of my buddies from high school, because I couldn’t do anything alone at that age. So we all went Friday night everybody was there. by Saturday morning. Only one was left. By Sunday afternoon. I was the only one left and and I saw the whole weekend and heard every speaker right. The first speaker that got up there was guy named Hal Morris and he was talking about points. I didn’t know what points were. And so I remember a year before that I discovered Earl Nightingale and Denis waitley. And all these great motivational speakers Jim Rohn, and I, and Zig Ziglar. And I remember Earl Nightingale saying, you know, if you want to get rich in real estate just learned the business first. And you know, he happened to be talking about real estate as an example. And so I immediately went out and enrolled in century 21 real estate school for $99 and started to get my real estate license. And, you know, I bet real estate school is about the same price nowadays that probably hasn’t been affected by inflation. Although college education is massively more expensive, oddly, because that’s a scam. Okay, another subject. It is, like, you know, there’s the vast Wall Street conspiracy. Well, this is the college government debt enslavement complex. Okay, and they’ve enslaved an entire generation generation Why, and they’re going to be renting from you for a long time.
Okay, now shall become fully we’re way off topic here again, Jason, you always do this. Um, so the government College is a scam. Okay, we covered that. Oh, yeah. So the real estate story and the point of being educated. That’s what brings us back. Thank God for PowerPoint slides. Right. Okay. So that’s the story of how I got into real estate. So yeah, I got my license. first year of college. I’m 19 years old. Two weeks before my 20th birthday. I had my real estate license in hand. Oh, but I’ll never forget this part. So I hardly studied at all for the test. My mom studied like crazy. And she got her real estate license about six months before I did. And I remember we lived on Freeman Avenue or Freeman street in Santa Ana, California, and it was right near the place. You know, where it’s the city center where the government is in Santa Ana, California. So, you know, the real estate test was like three blocks from the house, right? My mom drives me down there. And I think it was in that little Toyota tercel the gray one, she drives me down there and shows me where to park and everything and you know, and here’s what she says to me words of encouragement. It’s Sunday evening, the test is Monday morning. And mom says she’s driving me down showing me the place because that’s where she took her test for the get the license. And she says to me, well, Jason, at least you’ll know what the test is like, because he didn’t think I was gonna pass.
Anyway, the test was like, so easy. I couldn’t even believe it. You know, I finished the questions. And then I looked around the room and like people are actually still working. We’ve got three hours for 150 questions. It was a cinch. Anyway, that’s a whole nother story about how easy it is to get a real estate license. One of the things my mom heard at one of these seminars, these real estate seminars, this is actually back on point. Okay, good. So if she said, one of the speakers you know, was selling his expensive overpriced tapes, And all that stuff. And he said, if you think my or you know, he was upselling, his next seminar for $5,000 or whatever he says, if you think my seminar is expensive, just try the real world seminar. Good point. He has a point, right? Okay, so thou shalt become educated. Obviously, education is important, but don’t spend a bunch of money on it. It’s almost free nowadays, you know, like our events. They’re cheap, because we’re a real estate company. We make our money by actually, you know, helping people buy properties, right? So become educated, but the education you do not need to spend $40,000 for it. All right.
Okay. So there is our complete solution. Have a team have a team that helps you do this including your investment counselor, very important part of it. Remember, your investment counselor, like one of the other commandments coming up is area agnostic. So you know, they will give you the real view of What markets are the right markets for you are those goji berries? I have the same things those are really good for you have a have a team to help you do it your investment counselors area agnostic. So we have many markets all over the country. So they will help you get the right market. That’s, that’s right for you, you know a lot of it. A lot of it. In terms of what Sarah and Fernando do is and our other investment counselors, is they match you up with our providers or local market specialists based on your personality, honestly, part of it is that okay, Sarah, recently received her designation as an investment therapist. Okay, so anyway, I love that line. That’s so good. And one of our clients sent us a shirt. Investment therapist, right, who was that Sara? They’re not here, right? Okay, all right. I have a team.
Okay. And then commandment number three. You hear me talk about this one all the time. It is the most popular commandment three’s a charm. Okay, thou shalt maintain control three major problems when you relinquish control number one, you might be investing with a crook. Number two, you might be investing with an idiot. And number three, they take a huge management fee off the top for managing the deal. Lou Dobbs book, great book war on the middle class, chapter two, he talks all about this. And he talks about how legally the people on Wall Street are taking such massive fortunes off the top before returning anything to their investors. And the most egregious example of this has to be the founder and CEO of Oracle, Larry Ellison, from 2000 to 2002. Larry Ellison’s personal take from Oracle was 780 $1 million almost a billion with a be a billion dollars in two years. Now, that would be fine if it was in alignment with the interest of the investors. Okay. I mean, look, I’m okay. capitalist, I love successful people, I think they’re great. You know, when they, when they’re making money, you know, it’s it’s great. I want to see more successful people. It’s awesome. But the problem is it’s totally out of alignment. And it’s completely legal to be out of alignment. Because during that same two years when Larry Ellison took 780 $1 million out of the company, the shareholders who own stock in the company lost 61%. And that’s legal. Okay? So they might be a crook. They might be an idiot, you’ll lose money. But even if they’re not, they take a huge management fee off the top for managing the deal. So as we were in the financial crisis, we saw a lot of funny things happen. A lot of funny business, no one went to jail. In fact, Carrie Lutz profiles this all the time, this kind of stuff. He not in the room at the moment. It is just disgusting. That the head of countrywide Anthony mozilo mean slap on the wrist Oh, here’s a fine pay, you know, several million dollars, which is like pocket change to him and send you on your way, you know, the whole thing, nobody went to jail. It’s ridiculous no matter what your stock does, they will be well paid, you can have faith in that. So the interests are totally out of alignment. Now, one thing that wall street does well, I think that’s a legitimate thing is they use financial planning techniques to sell their crappy investments. And so, you know, we should apply this to income property. What is your investment goal? income appreciation, tax benefits? What’s your risk tolerance? Are you willing to take bigger risks and be in the more hybrid markets? We don’t do cyclical markets at all three types of markets. We’ll talk about that. Or are you a more conservative investor who really invest for cash flow? What’s your time horizon? Thou shalt not gamble. The property must make sense the day you buy it, or you don’t buy it. Don’t expect anything great to happen. For you to make a nice return on your money. Anything without income is not an investment. It’s just a speculation. It’s just gambling.
You know, I you may have heard on the podcast I was in Las Vegas last week, I did my speech to second biggest audience ever 2000 people kept walking through that casino every day. I go to Las Vegas, I never gamble a penny. Like I just that’s the so on interesting to me. Right. And some people like to gamble, they say it’s entertainment. I think it’s pretty expensive entertainment. But whatever. You know, you think you’re actually gonna win? No, you’re probably not okay that no one’s paying the electric bowl. You know, gamblers are definitely paying that electric bill. So no speculation invest for cash flow. Cash Flow is pretty darn reliable appreciation is not in all my years in this business. I have heard from people who think they can predict the appreciation and the depreciation and the cycles of the market. I’ve never seen anybody do it accurately. They all do it for a while. And they seem like geniuses until they’re until they’re not geniuses until they fall on their sword all the people that predicted the tulip bubble. Okay? They were wrong at some point. Everybody’s right until they’re wrong on these appreciation and depreciation predictions, but cash flow is pretty reliable. Okay, okay. I mean, everybody needs a place to live. And if you have a house with a renter in it, and that renter has agreed to pay you 1200 dollars a month. The likelihood is they’re probably going to keep paying. They don’t always I get it, but it’s pretty reliable. Versus Well, I think the price is gonna go up 15% next year, so I’m gonna buy now on speculation and just expect some appreciation that is not reliable at all. So Thou shalt not gamble. Now shall diversify, to great things about this.
One old thing we’ve all heard is, don’t put all your eggs in one basket. You all heard that one, right? Don’t put all your eggs in one basket. Well, Andrew Carnegie, the great industrialists, he had another saying he said, put all your eggs in one basket and watch that basket. Have concentration and focus, right? You go into a financial planner, and he’ll tell you diversify. I mean, diversify. Okay, you should and they’ll all say the same thing. It’s so stupid. I mean, it’s just unbelievable that we actually view this as a credible thing. They all say the same thing. When I was about to close the deal, when Coldwell Banker bought my company, I had a bunch of money to invest so I went around to all these financial advisor it’s like the pie chart they gave me it was all the same colorful and pretty small cap large cap, you know, you need some fixed income you need some What else do they have? What is their other junk? I can’t even remember small cap large cap fixed income only international Of course, you know, you gotta have that make the pie chart with colorful Whoo. How many of you know anybody who got rich without plan? crickets Yeah. Crickets sound effect. Nobody gets rich with that plan, right? Because it doesn’t work. Okay, it doesn’t work. So simply take the most historically proven asset class and diversify geographically. Because all real estate is local. All real estate is local. Be area agnostic. Don’t be attached to one area. Don’t get your mindset like the people in Southern California that say things like,
Well, you know, we’re near the beach and everybody will always want to live at the beach. Boom. I don’t know, maybe they will. But at what price can they afford to live there? You know, that’s just nonsense. Why do people think these silly things? It doesn’t make any sense? Okay, yeah, everybody will want a Ferrari and a Rolls Royce and too, you know, but that doesn’t mean they can afford it. Okay. So be area agnostic. Don’t get your head all attached to one areas. The greatest thing there A lot of great areas. In a country as large and diverse as the United States, there are just 400 local markets don’t get too attached to any one market. 13 fundamentals, the lucky 13 these are the things that affect values in areas cost of living transportation, job growth, employment, education, the regulatory climate. I do want to stop at this one for a moment. Number five, the regulatory climate. So we want to invest in places that are friendly to our cause as landlords landlord friendly markets, the regulatory climate is a big deal. But generally speaking, the cyclical markets are not landlord friendly. And the linear markets that we like our landlord friendly will get into cyclical linear and hybrid weather is a factor for sure crime rates, culture and arts, healthcare, fund and recreation, overall quality of life that’s what keyword value is population density and real estate market trends. That’s the lucky 13.
Okay now show borrow to maximize leverage, accelerate wealth creation and reduce risk. How many of you think borrowing money and being in debt is risky? dependence? Okay, well, not many people are ugly. But you know, normally you’d ask that in a room of people who don’t have the right information, the low information investors, right? And most people would raise their hand and say, Oh, no, that’s terrible. It’s bad. You know, I always ask, how many of you have ever loaned money to a friend or family member? Yeah, who was in control of the transaction? the borrower, obviously, right, not the lender, the people that got all the benefits, all the workouts, all the short sales, all the deals, the strategic defaults. In the Great Recession, they were the people who had the highest amount of debt. I cannot tell you the number of times during the Great Recession that I heard this, someone would come and say, Well, I’m having some trouble. And what do I do? And I remember actually, one Are agents at my company says, you know, I’m trying to get a loan modification on my house the house in which I live, not investment properties, personal residence, trying to get a loan modification. And Jason, you were right. Because they told me, I could not get a loan mod because I had too much equity. They had no interest in negotiating with me because they had no risk. They had 50% equity in their house. Why would the lender help you out? If they’ve got so much cushion? The people that got all the workouts and all the loan mods and all the benefits? were the people that had high loan balances. The people you’d consider normally to be less responsible.
I’m not saying this is right. I’m just saying it’s the way it is. In fact, it’s totally bass ackwards leverage. Here’s an example from one of Kiyosaki his books who took my money, which is a nice indictment of the financial services industry. And you see that $10,000 invested than the s&p 510 years later was worth just over $17,000. Yet that same $10,000 used to buy a $100,000 owner occupied home, which was now worth $158,000 10 years later, you sell it, you pay off the loan balance of you know, maybe by then it’d be about $80,000 it was 90,000 to start, okay. And you’ve outperformed the s&p 500 by 793%. And this doesn’t include positive cash flow. If you made it a rental it does include tax benefits, a whole bunch of things. It’s pretty awesome. Thou shalt only invest where there is universal need. Housing has universal need. office space does not have universal need. industrial properties do not have universal need. Retail properties do not have universal need housing. Universal need three basic human needs food, clothing, shelter, let them rent the shelter from you. They can outsource the office jobs to the Philippines and India, lessening the need for office space. They can outsource retail to the internet, Amazon, okay, less need for retail properties. They can outsource manufacturing to China, less need for industrial properties. Yet as long as the population is increasing in the US, everybody still needs a home a place to live.
So universal need income property is the most tax favored asset in America. Taxes are the single largest expense any of us have in our lives. Yet, most people will spend very little time learning about how to save on the single largest expense in their life. So depreciation, the holy grail of tax benefits. When you buy a property, you’ve got a piece of land you’ve got a house sitting on the land The IRS says the house is a business because it’s a rental property someday it will fall to the ground and be of no further value, no economic value. So instead of taking that depreciation when the house falls to the ground someday, by the way, how long does the house last? forever? What doesn’t last forever? Hundreds of years. 27 and a half years, everybody already knows the answer. Gosh, I can’t, you know, I tell you, the IRS sort of things that last 27.5 years. So if we have this equation of a $100,000 property, okay. And the land value is 20,000 you can’t depreciate the land because it will always be there and have economic value. The house is worth 80,000 you take 80,000 divided by 27.5 How much is that? Okay. 2909 if you qualify for the tax benefits, which there are ways to possibly make you qualify, then you can deduct 20 $909 which may not sound like much, but if you have a whole portfolio of these, it adds up pretty quick. Every year for 27.5 years, even if the house is increasing in value, if it has positive cash flow, and everything’s going great, the IRS still considers this a loss. So this is what’s known as a non cash write off or a phantom write off. And with this, you put yourself in a really, really enviable position. Because I mean, look at this is how wealthy people that earn very high incomes can basically massively reduce or even eliminate their tax bill. But wait, there’s more, as they say on the infomercial, okay. Because when you sell the property, you can do what’s called a 1031 tax deferred exchange, and you can trade your properties are all your life defer the gain and never pay taxes for your own home, you don’t get to depreciate it because it’s not considered a business.
If your house is valued at less than about $250,000, it’s probably better to own it. If it’s worth more than 250,000, the house in which you live, it’s probably better to rent it most of the time, from a pure economic standpoint, and that’s because the rent to value ratio, we’ve talked about all that before, but you can trade the properties all your life on a 1031 exchange. So I’ve done this several times. You don’t have to pay the gain if you sell a stock. If you sell a business, if you sell precious metals. The IRS wants their cut right there at the time of sale. If you sell your real estate on a 1031 exchange, you can just say to the IRS Hey Mike, I roll that into a new deal. And then I’m going to roll it into another deal years later and then another deal another deal and keep getting my portfolio bigger. You can’t do this with stocks or a business or precious metals only income Property being the most historically proven asset class and the most tax favored asset class.
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I’ve never really thought of Jason as subversive. But I just found out that’s what Wall Street considers him to be.
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Really now, how is that possible at all?
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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.
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I know I mean, how many people do you know not including insiders who created wealth with stocks, bonds, and mutual funds?
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Those options are for people who only want to pretend they’re getting ahead. Stocks and other non direct traded assets are losing game for most people. The typical scenario is you make a little you lose a little and spin your wheels for decades.
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That’s because the corporate crooks running the stock and bond investing game will always see to it that they win. This means unless you’re one of them, you will not win and unless
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Luckily for Wallstreet Jason has a unique ability to make the everyday person understand investing the way it should be. He shows them a world where anything less than a 26% annual return is disappointing.
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Yep. And that’s why Jason offers a one book set on creating wealth that comes with 20 digital download audios. He shows us how we can be excited about these scary times and exploit the incredible opportunities this present economy has afforded us. We can pick local markets, untouched by the economic downturn, exploit packaged commodities investing and achieve exceptional returns safely and securely. home before it disappears
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I like how he teaches you how to protect the equity in your and how to outsource your debt obligations to the government.
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And this set of advanced strategies for wealth creation is being offered for only $197
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To get your creating wealth encyclopedia book one complete with over 20 hours of audio go to Jason hartman.com forward slash store. If you want to be able to sit back and collect checks every month, just like a banker Jason’s creating wealth encyclopedia series is for you.
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