Jason Hartman looks at a number of topics starting with the idea of intrapreneurs. He talks about how peer-to-peer interactions are disrupting industries all across the economy. Later he shares the 10 biggest ICOs of 2017, then gives insight into how much of that is going into. The discussion turns towards the government shut down and what it’s costing society, then he ends with thoughts on the movement for the 51st state in the US.
Announcer 0:00
This show is produced by the Hartman media company. For more information and links to all our great podcasts, visit Hartman media.com.
Announcer 0:13
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 for real estate investors.
Jason Hartman 1:03
Welcome, welcome. Welcome. Thank you for joining me today. This is your host Jason Hartman with episode number 946 946. So appreciate everybody from all around the world from 165 countries. Joining me today. It is an absolutely stunning, beautiful, crisp, cool day in Las Vegas, Nevada. The tax free state of Nevada, and I got to tell you, you know, life is short, isn’t it, folks, you don’t get too many days like this is just stunning outside. Yesterday, it was incredibly windy. You know, after that wind comes through this. It’s just clear and gorgeous, just stunning outside. And, you know, this is one of the reasons we want to be real estate investors. So when there’s a beautiful day, we’re not stuck in a cubicle, you know, we can we can make Make our own schedule and do what we want to do. In fact, I would say that is the major goal of life possibly to live life on our own terms to live life on our own terms, rather than having a boss and a bunch of deadlines and, you know, even entrepreneurs, like yours truly, who work a lot. You know, I work a lot. And I think largely it’s a bit of a psychosis maybe because I just don’t have anything better to do, but I really do love it, you know, but even though a lot of this working a lot if you’re an entrepreneur or even if you’re an employee, and maybe you’re an intrapreneur, you are someone who has a printer, so to speak inside of another organization inside of another companies and hats off to you because there are a lot of intrapreneurs in the world. A lot of times they aren’t rewarded as much as they should be. Hats off to those Because, at least the entrepreneurs, sometimes not always, certainly, no, it certainly hasn’t always happened to me. You get either recognition and reward through building your own business and maybe having a high income or having an exit someday. Or just having the recognition of being able to author your own life to some extent. intrapreneurs a lot of times do not get that and they really contribute to the companies they work for. And, you know, sometimes it’s recognized sometimes it’s not so be sure you are recognized. I guess that’s the lesson there. But hey, a lot going on in the world. I just thought I should talk to you today about some of this stuff. Because Wow, we haven’t had a chat lately, have we? So a couple of random things today, but we are going to play a couple of those five year plan winning videos that I want you to hear because I think you’ll learn a lot from those. But first I want to talk to you about it. Subject we have talked about many times, and that is fiat money. Now, of course, you know that the term Fiat just means by decree, or by authority. And usually when people talk about fiat money, they refer to government and government creating money out of thin air. Of course, we know that’s the big scam of central banks. And we make that work for us as investors. It’s one of the big elements of my ultimate investing equation, the ultimate investing equation, and why income property is the most historically proven asset class in the entire world. Although, after I share this with you, you might reconsider, because you’re going to hear some amazing numbers Amazing, amazing, they’re gonna blow your mind. Get ready, get ready. So fiat money is usually referred to and we use this to our benefit, right? Because we exploit inflation we align our interests with these very powerful entities but there’s a new kind of fiat money on the scene. And yes, you probably know what I’m about to say it is the crypto currency world, the world of Bitcoin and all the rest. And as you know, I would love to be wrong about this, but I don’t think I will be and that is because these cryptocurrencies are going up against the most powerful forces the human race has ever known. And the problem is they don’t separate things very well. When it comes to the way people are throwing money around. On one hand, they will say, Well, you know, fiat money this and that and you know, I used to buy gold and now I’m buying Bitcoin or a theory and more light coin or whatever coin, you know, Hartman coin, I got to come out with my own right. And then you’ll hear the other side of that, and they’ll say, well, the technology behind it is so incredible blockchain is gonna change The world, yes, it’s going to change the world. And you know what those people might be right? might be right. For example, we all know that the world of romance has been largely destroyed and get this. The destruction has gone a step further. Well, so you’ve all heard about these agreements now that are floating around in the world, that people are so afraid to engage in the most natural human activity after eating, breathing and drinking, which is Yeah, you guessed it starts with an S ends with an X. Okay, that activity might have kids in the car. So you know, I’m just gonna say that this is a family friendly show. But that is a very natural human activity. Well, nowadays, people are signing agreements over this thing, right? Talk about taking the romance out of the equation, right. And now there are there an app for that. Yes, there’s an app for that. One of our listeners sent me a link to this one app where people can consent on their smartphones. So that if there’s ever legal trouble afterwards, and one says they didn’t want to do it, the other can pull out their phone with the help of the block chain. Yes, the blockchain based smart contract. I’m not kidding. This is what it’s come to, isn’t it? You know what all of this stuff leads to? Whether it be radical third wave feminism, or all of these lawsuits, you know, what it all leads to? Here’s what it all at the end of the day, here’s what it all leads to. And listen, do not hear this wrong. Do not hear this wrong. Listen closely. I’m not saying that some of these lawsuits and complaints aren’t justified. They are. I’m talking about various harassment, some you know, so forth, right. Anita Hill Ah, okay. There are many that are extremely justified, but justified or not, at the end of the day, you know what a lot of this leads to, it leads to a lonely population. Yes, England now has a minister of loneliness, a minister of loneliness, a whole new division of the government dedicated to solving the loneliness problem, because we all live in this very lonely culture nowadays, where everybody’s got very individualized devices. They’re very personal to them. They’ve got their earbuds in, and they’re too afraid to talk to anybody. I mean, it’s shocking the whole millennial generation. I even wonder sometimes if they can carry on a conversation. It seems like the whole environment is about text messaging, right. Shocking, scary. But here The other thing that leads to after loneliness, it leads to extinction. Yes, a lower birth rate leading to extinction. And if you don’t believe me, just look around, look around the world the facts don’t lie. Look at Japan, look at Russia. Look at the United States. And depending on the population demographic you’re addressing, you will see that birth rates are way down. And yes, I know the lefties that would have humans go extinct are clapping. Yay, yay, yay. Yes. We don’t want Mother Earth to suffer the fate of the scourge of humanity. Do we know we don’t. Anyway, I’m on a tangent. I apologize. I want to talk to you about fiat money. That’s where this all started. But the Alya blockchain. That’s how I got off on that thing. There’s an app now for consent through the blockchain. See, there are All these uses of the blockchain and there’s one of them. Well, there’s another one. There’s a company called salt, Sal t, which is blockchain backed loans, hold your assets, get your cash, right? So they’re all these major changes. And these are going to be hugely impactful, not just with cryptocurrency, not just with blockchain, but new versions of banking and new revolutions that are coming to the world of banking. You know, there has been some real talk, serious talk and I think legitimate talk that the Generation Y to some extent, but Generation Z following them, the generation after the millennials that’s just starting to come up now. They may never even use a bank. Can you imagine? I would love nothing more than to see banks just really have some concern. petition, the way the music industry finally got some competition years ago. Okay, thank you to Napster and kazaa Yes, I know it wasn’t legal, I get that it was wrong. Exactly wrong, though, when it’s peer to peer, right? It’s different than having a central source that’s, you know, infringing on everybody’s copyrights. That’s definitely wrong.
Unknown 11:22
But but but, you know, they taught the music industry a lesson because the music industry for decades was screwing the planet. I mean, how is it that every record album, and every CD was the same price? Ridiculous, right. So Steve Jobs came along and he you know, he proposed a reasonable in between 99 cents a song now 129 per song. Not that there’s no inflation or anything. But yeah, it’s pretty much 129 a song for every song on iTunes now, it used to be 99 cents but there’s no inflation is there. Have you Oh, by the way, I got a call out Amazon. You Jeff Bezos, you are being way too frickin greedy. Folks. Have you seen the price of some of these Kindle books lately? How is a Kindle book? $15 for a couple? Well, not a couple. But a lot of ones and zeros. That’s all it is. It’s just a bunch of ones and zeros. It’s a bunch of data, right? I mean, you don’t have to chop down a tree. You don’t have to refine any wood into paper. This is ridiculous. Okay, let’s hope there’s a lawsuit activism through the legal process. Let’s hope there’s a lawsuit on on this kind of Kindle pricing. It’s getting ridiculous. Kindle books should be cheap. Okay, so that more people can have them you would think a liberal like Jeff Bezos would want everybody to have access to books for free, right? Not when it’s his money. Yes, that’s the way it typically works. So this article that I want to share with you about fiat money is about the time The biggest IC O’s of last year of 2017, not an IPO. That’s an initial public offering. We’re all familiar with that. That’s what happens in the stock market when a company wants to sell shares of the company. But these are Icos initial coin offerings, meaning and they’re not really even a real coin. They’re just a bunch of ones and zeros on maybe a blockchain or another platform that’s similarly cool like a blockchain. It is shocking. What is going on in the crypto world is absolutely shocking. So salt is number 11. Right in these top 11. ico fundraisers of 2017 they raised $48 million whacks $68 million 10 x $80 million. Some of these numbers are going to shock you folks. Are you sitting down? kin $98 million and that was just sensible. temper right, quash 100 and $6 million. liquidity is the lifeblood of every industry is the single most important element lacking in cryptocurrency economy today. So these are all various Ico solutions to this problem. And this one’s based in Tokyo the Ico date was November, so literally in two months raised 100 and $6 million status 100 and $7 million. And I’ll just read you the little blurbs here in this Business Insider article, it says, and this is a screenshot of their website, okay, browse, chat and make payments securely on the decentralized web. Now, by the way back to my banking, not necessarily crypto, okay, or blockchain or anything, but just this world of peer to peer lending. And maybe this will come into real estate Well, it’s already in real estate we see that in the there’s all these iterations, right, there’s the cryptocurrency world there’s the cryptocurrency. The technology world like blockchain and so forth, there’s crowdfunding, there are peer to peer platforms, lending tree, gosh, I can’t remember the names of all of them. And then there are all these payment platforms, PayPal, Venmo, etc, etc, all these different ways to essentially bank banking, essentially, but totally decentralized. And what was interesting about one of my crypto freaky friends, okay, that absolutely loves this stuff. He says, and I think I told you this before, I was talking with him and he said, You know, when I took that money out to buy bitcoin and some other cryptocurrencies, when I took it out of the bank, I thought, you know, this money will never come back into the banking system. Interesting. Maybe he’s wrong. Maybe he’s right. Again, I’m not a believer, until there’s a government or central bank. Backed cryptocurrency then it will be a believer, because I just think that these things are gonna get squashed. That’s the danger here. But hey, I’d love to be wrong. Like I said, Okay, how about polka dot 140 $5 million, these centralized home for diverse chains, whatever that means, okay? They’re in Switzerland, the bank core protocol 150 $3 million. And then let’s go to the next one syren Labs 150 $7 million dollars, plans to build a blockchain based smartphone. Tesla owes 230 $2 million, a quarter of a billion dollars. Tesla is co founder and CTO Arthur Brightman and his wife, co founder Kathleen Brightman blah blah blah a new blockchain aiming to be more reliable than Bitcoin or aetherium. And then here is number one, file coin two Hundred and $57 million. And that’s blockchain based data storage. Now look at why am I telling you all this stuff? I’m not telling you to get excited about this stuff. I’m just talking about it because it’s interesting. And it’s a new form of fiat currency. There’s so much excitement around this stuff. It’s just absurd. But hey, you know what I’m excited about? I’m excited about the government shutdown, aren’t you? Know, listen, I’m not being too Pollyanna about this because, or too Cavalier, I should say, because really, a government shutdown is not a very efficient way to run a country. It’s expensive administratively to stop and restart. And you know, it’s a mess. It’s a mess. Okay, it’s a mess. But I will tell you that maybe we will see the government shrink more, wouldn’t it be nice to see the government shrink? Because think about it when we have a government shutdown, it’s like my friend Dan Sullivan said, who’s been on the show a couple of times. He said, Everybody likes the government, they can see Well, we don’t always like the government we can see but you get the idea. You get the point. You know, we like the basics, right? We like having civil society, police, fire protection, roads, infrastructure, things like this, right? So in any 10 storey government building, the first four floors 1234, keep them and the top six, with all the bureaucrats pushing paper wasting money wasting time getting in, it’s not all their fault. Look, they’re not incentivized to do anything productive most of the time. So why should they be productive? You know, they’re just pushing papers around and finding ways to spend more money so they can get more money the following year. It’s absolutely ridiculous. The incentives are all misaligned. We can get rid of the top six floors. But, uh, right along the side of the government shutdown is the movement for state number 51? Yes. State 51? No, it’s not Puerto Rico, not Puerto Rico. It’s called New California. Yes, New California, there is a movement behind a new California. Now, I have always said that California shouldn’t be divided up into two or three states, because then, you know, we could get some potential for voting with the feet. Right. And there’d be some pressure to have some good government, which California is very short on good government. So we’ll see how far that goes. But hey, well, we think about that. Let’s listen to these five year plan videos. First, let’s play the winning video. And that was Michelle’s video. And you know what, we’ll probably see They’ve number two. Well actually, I have to tell you, we can’t play number two on the air because the sound quality, it’s a great video. It’s got good content, but the sound quality wasn’t good enough because the microphone too far away from the speaker, but great video, lots of views on that video, by the way. So I’m so proud of all of you for entering the contest. I mean, just entering the contest makes you a winner. I know the five year plan contest we had was a high bar, you had to make your own video that was a high bar, and you know, be creative, come up with a plan, etc, etc. Well, Michelle’s video one, we presented that at meet the masters. And everybody of course, thought it was great because it was great. So let’s just listen to the audio track. I’m so sorry. You can’t see it because it’s beautifully animated with animated characters. But here is the soundtrack and then I will be back to finish up. Hi,
Michelle 20:59
my name is Michelle This is my husband, Phil.
Phil 21:02
Hello.
Marcin 21:03
Hi, I’m Marcin.
Sophie 21:05
I’m Sophie.
Hawkin’s Family 21:06
We’re family.
Michelle 21:08
And this is our five year plan. Our five year plan centers around three main areas of focus, health, wealth and family area number one health. It all starts here. I’ve learned that healthy habits are the cornerstone for a successful life. If you don’t have your health, it’s really hard to achieve your other goals. So in these next five years, we will focus on getting quality sleep, daily exercise and eating fresh organic meals. We enjoy eating a paleo inspired diet. Area number two, wealth, we want to achieve financial freedom in five years. Step one is to build passive income through rental properties because
Jason Hartman 21:56
income property is the most historically proven asset class in the world.
Michelle 22:01
Thanks, Jason. Our current portfolio contains 10 units, it brings in passive income of about 30 $500 per month. That’s about 29% of our monthly expenses. However, if we want to cover 100% of our expenses, we need about $12,000 a month in passive income. So how will we achieve that in five years? It’s simple. If we buy eight units per year for the next five years, we will end up with a total of 50 units. With 50 units, our monthly passive income will be about $15,000. Assuming an average of about $300 a month per unit, that’s enough to pay our expenses with room to spare. Step number two is to fire Phil’s boss.
Phil 22:50
I’m going to retire early from teaching and build a media production business producing video and audio from my own studio.
Michelle 22:56
Area number three is family. We want spend our time doing what matters most making memories traveling the world and becoming the best possible versions of ourselves. With our increased financial security, we can achieve a better work life balance. We want to explore the world together and share an amazing experiences. In the next five years. I want to take my mom back to Korea and meet my relatives.
Sophie 12:24
I want to go to Paris.
Marcin 23:26
I want to eat sushi in Japan.
Phil 23:28
I want to travel to Tierra del Fuego and see Antartica and the penguins.
Michelle 23:33
And when we’re not traveling, we’ll be pursuing our passions. I love reading going to see shows with my friends and trying new restaurants and exotic cuisines. And I’m going to start a blog.
Marcin 23:46
I’m going to publish my first novel and learn how to drive
Sophie 23:52
I want to add to this show.
Phil 23:54
I have lots of music that I want to record and perform and I’m going to earn a degree in kinesiology
Michelle 23:59
But most of all we want to spend time with our family and friends, because that’s what really matters.
Jason Hartman 24:09
All right, well, didn’t you love that five year plan video, you can see why you can see why she won. But I’ll tell you everybody who entered did a great job. I mean, these videos I just without much guidance at all. You guys just took the bull by the horns as the saying goes and really created some, some great stuff. So thank you for doing that. Okay, a lot of you on your evaluations for meet the Masters asked. And you said, Well, I wish Garrett Sutton had more time. Well, guess what? I reached out to Garrett and I said Garrett, the evaluation said they wish you had more time to speak and meet the Masters to talk more about asset protection planning. So he’s gonna come back on the show and he’s been on several times, but we are going to continue on His meet the master speech. Yes, we’re not going to talk about a bunch of Jason Hartman tangents, although we might throw a few in there. But we are really going to continue the content from meet the masters. So you’ll get more of that asset protection stuff. You know, if you want to listen to any of his other prior episodes, just go back, go to Jason Hartman calm and type Garrett Sutton and you will find more and more about his content. You know, again, like I said on the last episode, last Wednesday, when I talked with Kerry, I talked about asset protection meaning a couple of important points. Number one, the internal and external threat. Most people don’t get that figured out. It took me a while to understand that one. So make sure you understand the internal and the external threat, okay, and then understand, if you are attacked, if you do have a creditor, how it really works, how that system works after they get a judgment and then they find out about your assets, and so on and so forth. You know, I’ve had to do this with a few people that I’ve come after. Okay. And, you know, occasionally you just got to do it. And it’s really was quite interesting to find out how that whole system worked. California speaking of New California, and I’ll just close up with this. Do you know that liberal California now leads all other states in the union in terms of having the highest poverty rate? Isn’t that sad? the true definition of a banana republic, where you’ve got incredibly wealthy people, and incredibly poor people, and a disappearing middle class that has been fleeing the state for a couple of decades now. And you all know where they’ve been going. You know, we’ve talked about the U haul truck study, you just go to u haul calm and do it yourself. See what it costs to rent a truck leaving from any California city, probably any major one And going out of state, go to Phoenix go to Las Vegas go to anywhere in Texas, whatever versus the price of renting that truck for the return trip. It’s amazing the difference. It’s truly shocking. Anyway, a lot more to come there. Unfortunately, hopefully California will get its act together. On a future episode, I got a bunch of stuff to talk to you about. But a rather famous musician now faces 30 years in prison on fraud charges for yes defrauding people in a fun in a fun. I’ve talked to you many times about direct investing, and the perils of investing in funds. So we will have a cautionary tale about that again. And the amazing thing about these people is they’re always the pillars of the community until they’re not like Bernie Madoff. You could have run every background check in the world on Bernie Madoff, it wouldn’t have yielded Anything, because he wasn’t a crook. until everybody found out he was a crook. Right? So yeah, it’s pretty scary, pretty interesting stuff. So we’ll have a lot more about that in the future. But listen, without further ado, thank you for joining me today. We got a bunch of great shows coming up. I hope you enjoyed Michelle’s winning five year plan video. And we are going to play video number three on a future episode as well for you. And, again, thank you to everybody who entered the five year planning contest. And Oh, one more thing. We are now putting some of the speaker slides into the app from meet the masters. So if you were at meet the Masters, you’ve still got that app on your smartphone, look in there, look at the slides that we have added to the app. And those will be available for you. You can email them to yourself outside of the app or save them to Dropbox as well I think or a drive so That’ll be available to you as well. So check your app from meet the Masters for a bunch of those slide presentations and I think you’ll get a lot out of those. Okay. Thank you for listening today, everybody. Happy investing. I’ll talk to you in the next episode.
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