Jason Hartman and Investment Counselor Adam welcome investors into the new year and discuss listener challenges and how to make an investment plan for the year. They give a great perspective on being realistic about planning and make things difficult to reach but not impossible.
Jason Hartman 0:00
My wife and I were drawn to you because we liked the idea of putting money down qualifying, making sure we can cover the mortgage, you know, and have reserves like you were talking a language that was very appealing, based on what we had gone through before.
Announcer 0:15
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 Jay. Hartman with the complete solution for real estate investors.
Jason Hartman 1:05
Happy New Year and welcome to Episode 1359. And what a great new year it will be. We’ve had lots of clients making great money following our plan and investing with us for the best decade and a half. Well, I guess 1.6 decades actually at this point. So this is the 16th year in the business of helping investors exclusively, of course many years in traditional real estate before that. I’ve got Adam here with me to talk a little bit about New Year’s resolutions and what you can do to be a great investor in the new year. Adam, good to have you back.
Adam 1:47
Good to be back. It is a wonderful time to have a new year.
Jason Hartman 1:51
Yeah. And by the way, I should tell you, if you went out and celebrated a little too much last night, there’s no shortage of Advice floating around the internet on what to do to feel better. But certainly hydration is the key. You know, one of the most interesting tips I heard, you know, I’m not much of a drinker at all, just does not feel good. I don’t like it that much. But you know a little bit. One of the most interesting tips is take a shower, a hot shower, and this is really weird. You ready for this one, Adam? Bring it this is this is weird. Okay, so alcohol dehydrates your body, right. And so it’s very important to have hydration. And one of the reasons you have a headache, this is really kind of gross, but I’m going to say it because our listeners need to know the cure so they can get back on track, make their new year’s resolutions, and plan for a great new year to be awesome investors. And one of the reasons you have a headache is because literally your Brain shrinks because it is dehydrated. Inside your skull, your brain has shrunken away from your skull. And that hurts. So two things you can do, of course, drink a lot of good old water. Maybe you want some water with lemon in it because it’s sort of extra hydrating that way. And also take a hot shower and get your head under that water. Because that makes it feel better. And it helps with that contraction of the brain problem.
Adam 3:37
Or you can get a friend in the healthcare industry who stocks sailing in their house and they can give you an IV
Jason Hartman 3:42
Oh, yeah, yeah, you know, that’s funny. They have those portable IV entrepreneurs that will come in the show billions they do that when all those Wall Street guys party too hard, and they’ll have the nurse come in and give everybody an IV crazy crazy But hey, on to something more positive New Year’s resolutions, everybody is starting at a different place. Everybody has a different amount of money with which to invest a different amount of income with which to qualify for those awesome 30 year fixed rate super cheap mortgages. So everybody’s at a different place, right? Maybe your goal is to buy two properties in the new year to add two more properties to your portfolio, maybe you’re just starting out, and it’ll be your first two, maybe you’ve already got 10. And it’ll be two more properties. Or if you have more resources, maybe it’s to purchase 12 properties this month, and expand your portfolio by 12 more properties. So that’s a clip at one a month on average. So you’re going to always be under contract, you’re going to always be in escrow. buying something Right, if you’re doing 12 properties this year, if you’re doing 24, then two at a time, always throughout the year, maybe you want to buy one property per quarter and get four for the year. So everybody comes to the game with a different amount of resources. Our investment counseling team, of course, will help you with mortgage sequencing, they will help you find the right lenders. Maybe you’ve exceeded your 10 or 20. If you’re married agency loan limit, and you’ve got to go look different places for financing. We can help you do that. There’s some good options nowadays for that. So, our investment counselors are available through Jason Hartman. com, just fill out any web form on the website, and at Jason Hartman calm and we will reach out and be glad to help you or call us at one 800 Hartman that’s one 800 h AR t ma n. Adam, your thoughts on New Year’s resolutions or New Year’s goals. It’s kind of the Same thing not exactly.
Adam 6:01
Yeah. So I’ve been thinking, you know, you’ve heard people at this point have said, Oh, New Year’s resolutions are so cliche. That’s kind of true. But our minds do work in a way that when there’s a clear board, like, you know, one 120 our minds seem to get it, right. Like, if you look at the store, and pretty much any store around the world, you see, like everything’s $1 99, not $2. And it’s stupid, because it’s only one cent, but mentally, it does make a difference. And so what I want everybody to do this here is to make a commitment to make a resolution to sit down and have a talk either with yourself or with your significant other or whomever helps you or works with you and making your financial decisions, or your investment counselor or your investment counselor, you know, that would be included. And just figure out what you want to do you know, realistically, what can you do? Realistically, what are you willing to do? So maybe you know, if it is safe for properties and you want to do one accord Figure out, where am I going to get the money? You know, how much every month Am I putting away here? How much am I putting, you know, if you do invest in your 401k, let’s say how much you’re going to put there, how much you’re going to put away in your savings for real estate. If you have to cut back on anything, what are you willing to cut back on, and just make a conscious effort to plan for the year, don’t go out and say I’m going to buy 10 properties. If you know you’re more likely to buy five, you know, don’t make your goals unrealistic, but just figure out what you can realistically do and how you can realistically get there. So that you can become financially free. And I want to challenge everybody out there to do that, whether it’s with us or whether it’s you know, with whatever else you end up doing, you know, but figure it out, you know, it’s the most important thing you can do is, you know, enjoy today and figure out the later parts of your life.
Jason Hartman 7:50
So that goal should be just out of reach but not out of sight. Right. And that’s one of the metrics for whether or not it’s realistic. You know, it should stretch you on one hand, it should be something that’s not easy, right? It should be a stretch. But it should also be visible, right? Where you can see it being a possibility, not just a crazy, outlandish idea, you know, you’re not going to be, oh, god, I’m going to say it. Donald Trump. Okay. He used to be used as a good example, as a real of a real estate investor before it became president. And then, you know, it got all political. Right. Right, exactly. Now, the name has a whole different connotation of good and bad, right. So, you’re not going to be Donald Trump overnight. Okay. You know, there’s a lot of investing along the way. There’s a lot of sacrifices, there’s a lot of battles. And so just out of reach, but not out of sight is how that goal should be. And you know, in our world with simple single family home investments, and you know, occasionally we have some other stuff we do with clients, bigger properties, but just with a good old single family home You’ll need about $25,000 to purchase each property. So if you examine your assets now, you want to do a portfolio makeover or investment counselors will be happy to do that portfolio makeover exercise with you. It’s totally free and will tell you how to obtain the highest and best use for whatever funds you have. So if you have money in a IRA, or a solo 401k, we can help you get that money self directed. If you have money in home equity stocks, bonds mutual funds, we can help you look at the highest and best use for any of these funds and with the income properties, about $25,000 per property. And a typical property might bring you somewhere in the neighborhood of $200 per month in positive cash flow, but an all in return and of course, you can see that This at Jason Hartman calm in the property section. Or better yet, just look at the free video on the front page of Jason Hartman calm where I talked about how to analyze a real estate investment. It’ll just take you through the performer where you can look in detail and see how you can really, really make it work for you. So that’ll be a very, very helpful thing
Adam 10:24
in even if you’re an investor, you know, and you’ve been doing it for a while, you should make a resolution to watch that video again, at the beginning of the year, right? It never hurts to watch it again. It’s a helpful video,
Jason Hartman 10:35
I promise you that little homemade video will give you new insights. Every time you watch it. It will give you new new insights. Good stuff. Well, hey, we’re not going to make it too long today. We’ll wrap up but we just want to wish everybody a very Happy New Year. Thank you for your support over the past decade. So many of you have been investing with us for so so long. I mean, we have investors That, you know, have been working with us since 2004 2005. Certainly back into the thick of the Great Recession 2008 2009 and have just been going, Oh, you made a total killing. I mean, the people who’ve been sticking with the plan, as that old saying goes, most people overestimate what they can do in a year, and underestimate what they can do in five years. So it may seem like you just don’t view that properly. Right? These are seven figure decisions like our Monday show talked about. It’s amazing, just incremental achievement, how fast your wealth can multiply, and how fast your success can multiply. And Adam, you know, you would be a good case to speak to that individually when you were a client. Okay, how long ago did you start investing with us?
Adam 11:53
Looking back maybe three years ago,
Jason Hartman 11:55
just three years ago, and how many properties you have to now we’re in contract for 66 property, okay, so you’re moving along at a clip of two per year. And I mean, your properties have definitely increased in value over that time. I mean, you are in great shape. So congratulations.
Adam 12:16
It’s kind of nice every month, we get in, you know, extra thousand 1200 dollars or so, you know, that’s after we take out money for vacancy and all that stuff that we’re saving away in the back. So you know, it’s kind of nice to have an extra 1000 1500 dollars a month.
Jason Hartman 12:31
Yeah. And at the very least, at the very worst case, those properties are a forced savings program, something that if you ever get into an emergency in life, you can always look to that property to say, hey, you could tap into this. You could sell the property, you can refinance the property, you can do something and you’ve got this, all these little piggy banks sitting there. So it’s really just a great, great resource. Very powerful thing. It’s always working for you. And it’s always moving in a forward direction, which is just phenomenal. That’s why I say income property is the most historically proven asset class in the entire world. In fact, Adam, I think you had a property or two you wanted to just tell our listeners about today, didn’t you?
Adam 13:17
Yeah, before we go, we had one that was posted last week and I’ll have you know, people these it took me a little while to find one because a lot of the ones that were posted in the last one to two weeks have been sold. So I had to go digging a little bit so we have one here in Jacksonville, Arkansas,
Jason Hartman 13:32
not not to be confused with Jacksonville, Florida. No,
Adam 13:36
I think there’s still some of those available, but they’re not the newest ones up on the website. This one has a sales price of $109,900 price per square foot of $75. It’ll rent for 995, which is just a little bit below the 1% mark that we look for, and it will cash flow $204 a month estimated with a total return on investment of 32% expected. So not too
Jason Hartman 14:02
shabby. Not too shabby at all. That’s fantastic. So the overall return on investment, when you look at it from a multi dimensional perspective is what did you say? 32% 32%? Yeah, you know, people that you know, might be listening to this show that haven’t been following our work over, you know, the last many, many years. may think that’s crazy. It’s unrealistic. But go to Jason Hartman calm. check out that video on how to analyze real estate deals. 27 minutes long goes into great detail breaks down every single number on the performer. Go check that out. And you will see because income properties a multi dimensional asset class, you can achieve those fantastic returns like that. So good stuff. Good stuff. All right, Adam. Let’s wrap up today’s short episode. Everybody’s got to get back to their New Year’s celebration resolutions and goals. Or their recovery. New Year’s recuperation New Year’s recuperation. I just want to wish you all a great day. And of course a very, very happy new year. It’s going to be a fantastic year. Find us at Jason Hartman calm or call us at one 800 Hartman that’s one 800 Hartman, we will look forward to talking with you on tomorrow’s episode. 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 heart and Mediacom for appropriate disclaimers and Terms of Service. Remember that guest opinions are their own. And if you require specific legal or tax advice, or advice and any other specialized area, please consult an appropriate professional. And we also very much appreciate you reviewing the show. Please go to iTunes or Stitcher Radio or whatever platform you’re using and write a review for the show we would very much appreciate that. And be sure to make it official and subscribe so you do not miss any episodes. We look forward to seeing you on the next episode.