In this solo episode, Jason Hartman discusses his Flatline Fee proposal. Flatline property management fees allow investors to know how an investment will perform in advance and can be used to align with the property managers and increase the number of customers for everyone involved. He also shares how to understand the numbers behind the demographics and how they apply to the economics of an area.
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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 the 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 listeners from around the world in 164 countries. This is your host, Jason Hartman. And I want to thank you so much for joining me today for episode number 675 675. It’s great to be here with you as I am in Miami, Florida actually in South Beach. You know, there’s a lot of people here in South Beach that I want to talk to you about today because they are going to be our tenants are renters for many, many years to come. As we’ve talked about on many prior episodes, Generation Y and the maturing generation, the baby boomers and the generation actually older than the baby boomers that is never really got to a good clear name. I’ve heard demographers call them the matures. I know It’s a little hard to say it’s a tongue twister, those two generations are having a huge impact on our investment portfolio. And we really, probably cannot discuss this too much because it is so critical to our investments and to our future as investors and our financial future in general, huge, huge impacts. Of course, I just finished speaking on a property management panel here at the I am and conference. And I talked about what I proposed that I want to say went over like a lead balloon, all admit it when i when i do things that don’t succeed. And this was one of them. And for those of you who attended the meet the Masters event, not this year, not in 2016. You heard a little bit about it then, but you heard a lot more about it back in 2015. For those of you who attended, and that was the idea And I presented this again at the panel to the audience today, at the information management network conference here in Miami. That was the idea of a higher cost, well, higher upfront fee. In property management a higher monthly fee, I should say, where a property manager, instead of charging you, maybe 789 or 10% per month, but having a bunch of little garbage, what I want to call, I just want to call them garbage fees in there would charge you a higher fee, but it would be completely flat. In other words, there would be no other fees, your income from that property would be directly related to and I say align with the property managers income and their ability to produce income on that property. So instead of having A lease up fee. renewal fee may be a markup on the repairs, some managers do that some don’t. If they do it, it better be disclosed, though that is for sure it had better be disclosed.
You know, I’m not totally against that idea just for the record, but it just better be disclosed. Okay. And instead of doing it this way, you would pay a higher fee. But it would just be one fee, there would be no other fees. And one of the areas that particularly well, two areas, I’ll say that concern me, particularly our property managers, and there’s a little bit of the surround that want to charge owners for vacant properties. Yes, a vacant property fee. We had one manager proposed just last week and one of the investment counselors and I were on this thread discussing this issue, saying that they wanted to charge get this get this you sitting down, folks because this is how ridiculous They wanted to charge $75 per month as a vacant property fee. Are you kidding me? You must be out of your mind right now we’ve had other managers say they want to charge $25 a month as a vacant property fee. I don’t think you should pay your property manager anything when your property is vacant. Because, again, it comes down to motivation. Remember, the greatest management principle in the world. And the principle that runs the entire world. It runs government, it runs public policy, it runs monetary and fiscal policy. It runs tax policy. It runs your relationship with your significant other, it runs your relationship with your kids. Heck, my dog is sitting right here cocoa. It runs the relationship between cocoa in dye and your dog and you okay? What is that principle? It is what gets rewarded, gets repeated. What gets rewarded gets repeated. So if there are actions that you like, and you want to encourage, of course, you want to reward those actions and the opposite of those actions. You don’t want to reward them at all. So why would you be rewarding a property manager for a vacant property? To me, the idea is absurd on its face. I suggest you don’t do it. Now, the reason I propose Okay, let me tell you the other area by the way first, the other area is the area of late fees.
Okay. So some property managers will say, well, when the tenant is late paying their rent, and we have to make an extra effort to collect the rent for you, then we should be entitled to half of the late fee that the tenant pays Or maybe even, they’ll say we should be entitled to all of the late fee. So if the late fee is 50 bucks, and the tenant is late on the rent, then the manager says, Hey, you can have your rent. But if we come back to that money, we’re keeping the 50 bucks, or we’re keeping $25. And you get half of it, or you get none of it. But here’s the problem, it goes back to the alignment of interest. We want to try and make all of our agreements in life with aligned interest, so that our interest is aligned with our property managers. And that is not an alignment of interest. Why not? Because number one, the property manager wants to charge the tenant as many late fees as possible because they make money from that. And I say, it could maybe not always, but it certainly could make the property manager predatory on the tenant. Look, at the end of the day, folks, I know a lot of landlords and property managers will complain about tenants. But we have to remember, the tenant is our customer. We have to keep the tenant happy if we can. And remember, they are paying us, they are paying our mortgage, they’re paying a little bit extra. They are making our investment, the most historically proven asset class in the entire world income property. They are the income component of income property. So of course, we should appreciate our tenants, they are good before paying us. And we don’t want them to get dinged with a bunch of late fees. We want things to go well, we want them to pay on time not have to pay a late fee. And we don’t want a misalignment of interests with our managers. So I presented this idea. A woman came up to me who’s a property manager in Minneapolis after my talk, and she said you know, I Really like your idea? And she has, I can’t remember how many but I think a couple hundred doors under management. And she has many small investors. And one of these small investors has about 20 doors with her under management. And I said, You know what, why don’t you just test this idea, first of all, run a couple performance, like I did a couple of years ago, run a couple of performance based on the tenant staying in the property for one year or two years, or three years or five years. And see how the income comes out.
You know, if you are able to charge a lease up fee once a year, versus the tenant stays three years and there’s no lease up fees, or maybe there’s just renewal fees. And then you have your rate that you’re charging now versus the potential higher new rate of maybe 12% per month, okay. And of course, none of this stuff I have to tell you is fixed by law. It’s all negotiable. Everything Life isn’t negotiable, except death and taxes. Okay, As the old saying goes, but hey, if you’re a real estate investor, you can lower your tax bill quite a bit if you play your cards, right. And so I said, Why don’t you just try it, see how it works. I say people want simplicity. And clients, you the investors, you want to be able to predict your investment. You want to know in advance that as long as that tenant pays you rent, and they pay you $1,000 per month, and maybe you pay 120 bucks per month 12% to the manager, but there are no other what I call garbage fees. It’s simple. It’s a flat line fee. You know, how your investments gonna work out in advance. The way it’s always been done, up until this new idea that Jason Hartman came up with. Don’t you love it when people talk about themselves on the third person? Really, really egotistical? Right. Anyway, before I came up With this idea, you know, the way it’s always been done is that you can only judge your investment in the rearview mirror.
Looking back, one of our venture Alliance members, Well, a couple, Jeff and Shannon, Jeff sent me a spreadsheet about a month and a half, two months ago, I guess. And he just started investing with us. And he and Shannon did. And that was about a year and a half ago, I believe. And he was looking back on his time. And he said, Hey, you know, my little portfolio here, I think he had about 10 properties or so that performed at over 22% annually. So he was very happy about that. And folks, 22% can you imagine if you only do half as well as Jeff and Shannon did, you can make 11% now, just for perspective here, remember that good old Bernie Madoff promise people what eight to 12% consistently and he was supposed to be a genius. Until we all found out he was a criminal. Okay. And and that was a phenomenal return if you could get a consistently in this is why income property is the most historically proven wealth creator, because you really can get these returns consistently, it really is possible to do this in real life.
So anyway, I encourage you to propose this idea to your property managers. I think we need to get back on this bandwagon. You know, since I first presented it a year and a half ago at our annual meet the Masters event, I haven’t really beating the drum about this and with new ideas like this, you got to keep beating the drum, you got to keep bringing it up. You got to keep suggesting it. And why don’t you see if your property manager will just try it with you on your portfolio. If you have several properties with one manager, get them to try it with half of your properties. Now it requires a little bit of effort on their part to change the way their software does the billing and all of this kind of stuff, but It can be done. And I say, you know, my opening talk in this year’s meet the Masters was about the concept which I’ve talked about on the podcast and in many prior episodes, that you can’t hear the dogs that don’t bark. And so my pitch to the property manager is this, you always got to look at it from the other person’s side, right? Put your, you know, walk a mile in the other person’s in the other person’s moccasins before passing judgment, right. And if you want to convince them of something, view it from their side of the equation. So I say they will have a lot less complaining because clients aren’t being nickel and dime so they’re not gonna complain about anything. They know the deal in advance, client will have certainty the property manager will have certainty. But also, mostly, you can’t hear the dogs that don’t bark and the dog that doesn’t bark is that I say they will have more customers. Because I know a lot of you out there listening are clients of our firm, and you buy some properties. And then you might have a little bump in the road and you’ll become a little bit annoyed.
And then you’ll think, Well, you know, if I just put my money in this stupid mutual fund, maybe I’ll get 5% on average, and then I’ll have to pay taxes on that, blah, blah, blah. And you know, it’s just a pretty lame deal. But you might think that because you don’t have to really deal with anything, you believe it’s a more passive investment than the income property. And you’re right, okay, but your returns are much, much lower. So how much are you willing to give up for? You know, this doesn’t take that much effort. Once you get used to it and you figure it out. It’s really not that difficult as a property investor. So you’ll have the certainty your manager will have More business because I know like I was saying that a lot of you have hundreds of thousands of extra dollars sitting on the sidelines, you got them in some stupid mutual fund, or some dumb stock, you know, Wall Street, the modern version of organized crime, okay? You’ve got your money in the stock market, or you’ve got it in the bank or something. And you think, you know, I’ve got six properties, should I buy six more, and double my portfolio and get 12 properties, and I want you to buy 12 Okay, but the thing that you get annoyed with is you get your statement from the property manager and you got nickel and dimed. Now maybe you’re only paying 8% management fee, but they charge you 25 bucks here and there. Maybe your turnover is higher because the tenant is getting dinged for late fees a couple times a year. And the tenant just gets annoyed with that and they move to another property where they’re probably going to experience the same exact thing and then That’s what happens.
So you can’t hear the dogs that don’t bark. I know that more of you would pull that money off the sidelines. If you didn’t get nickeled and dimed. Okay, now, of course, we could talk about self management, which I think is a pretty wonderful idea. I think you should also consider trying that. But make sure you become a member of Jason Hartman University Jq in the member section and listen to our calls our conference calls on the self management discussion. And I listened to the old podcasts about that, too. So anyway, that’s one thing I talked about on this panel. Now, tomorrow, I’m speaking on another panel. And I gotta be honest, I’m a little bit nervous about this one, because I’m talking about demographics. Now I love to talk about this stuff. I’m a huge I have a huge, wonky nerdy personal interest in demographics, but the other panelists speaking up there with me are Really wonky academic people, some of them, okay. And you know, when you get this type of person, maybe they all love not agree with my statistics that I throw out and things like that. So I thought I’d share a couple of them with you. Because I’d like to practice on you. How’s that sound? So there are some amazing trends when it comes to demographics. And as I’ve said many, many times, the demographics coming if the rental property market over the next 10 years, are very likely the best they’ve ever been in human history. I kid you not it, it’s an amazing time to be alive. But it’s also an amazing time to be a real estate investor.
Now, that doesn’t apply if you’re investing in the high end markets that are probably overvalued. Now. That’s one of the consensus also that I’ve gotten from this conference in talking to literally dozens and dozens of people and seeing a bunch of speakers over the last day and a half. I believe that That’s true. But in the linear markets, and even some of the hybrid ish markets that we recommend around the country, it still makes sense. I mean, there may well be another shoe to drop. I do not deny that one bit. I think this recovery is built on smoke and mirrors. I’ve questioned many times whether or not we are in a real recovery in terms of the overall economy. It’s juiced up by printed money, it’s juiced up by monetary and fiscal policy. And so that’s the way it always is the games, the manipulation, we’re all just puppets have the bigger powers that be right. But we want to align our interests with them. And that’s why that’s why my philosophy is to align our interests with those big powers that be because we can complain all we want, but we’re not going to change it. Okay. So two big, huge demographic cohorts. All right. The graying of America, the graying of America, being one cohort at one side of the spectrum. And Generation Y, the millennial generation, you’re probably getting sick of hearing me talk about this. But folks, you gotta pay attention to this stuff, because it is such a giant, giant deal when it comes to rental property and income property, investing in every other part of the economy for that matter. So I’m looking at a very interesting graph of key demographic trends. And basically the census data that shows that households over age 65 have grown dramatically, and they will continue to grow dramatically.
Let me give you an example. 65 year older Head of Household right now 30 million households in America, just look back to 1990 In the big scheme of things that wasn’t that long ago, and there were only 20 million there were 10 million less. Look back to 1975. There were only 15 million of those households. I host another show, of course, hopefully you know, and hopefully you listen to this the longevity and biohacking show fascinating stuff about longevity sciences. And I believe that we are on the verge of some major life extension, which will have giant, ginormous impacts on housing on the economy on the entitlement system on social security on retirement plans on irisa. On when are people going to be forced to take their distributions from their plan that has massive impact on the economy and massive impact on the real estate market. One of our clients dawn who came to the venture Alliance meeting we had injected island where the Federal Reserve was formed. He’s he’s facing a big decision about taking distributions and how he needs to do this. So this is very important stuff, it affects 10s of millions of people in the near term, and then 10s of millions more after that, households under 30 years old. Okay, let’s look at them. Let’s look at the other end of the spectrum. We’re going to leave out my group in the middle, right, and we’re going to leave out some of the baby boomers certainly to here, but that is the people between age 30 and 65. Right. A large portion of that is my demographic cohort Generation X. I have a very small demographic cohort. There aren’t many people in my demographic age group, okay, if you’re a Gen X or like me, you look around and you’re like, Oh, I don’t have enough friends my age because there just aren’t that many people. It’s a very small demographic Generation X is but Generation Y, the millennial generation and the baby boomer generation, those are the big ones, the big book ends at either side of Generation Y. So households under 30 years old, they’ve stayed relatively level. Okay? So if we look back to 1980, there were about looking at this graph about about 16 to 17 million of them. And in 2015, there’s about the same number.
However, it is slated to grow pretty dramatically. Let me share this with you. This might blow your mind. I really want you to think of the amazing significance of what I’m about to say. You’re listening. Alright, don’t take notes because I know you’re driving or you’re working out. A lot of people work out to my podcast, you know, I don’t think I’m very motivated. But let me count. We’re not very motivated. I’m motivated, just don’t often very motivating. When you’re at the gym, you know, okay, 1234 Come on, give me more setups in that run faster on that treadmill. Alright, so Generation Y, the next big thing, one in three of all US adults within four short years, that’s by 2021 in three of all US adults will be in Generation Y in that cohort. All right. Now get this one. This is even more amazing, much more than that. All right. So that’s, that’s one third of the one third of all adults Okay, in that first stat I gave you now here’s another stat that will blow your mind. By 2025. That’s only nine short years away, that’ll be here in the blink of an eye folks. three of four working people, that’s 75% of the workforce in the United States of America 75% will be Generation Y 75% in nine years 75% will be Gen Y. That should blow your mind. And I tell you, if you are in management of any sort, you had better learn to relate to these people who are criticized in many ways and complimented in many others. It’s a mixed bag like everything in life, but it’s a it’s a narcissistic generation. It’s, it’s the selfie generation. It’s the social media generation. Look at me, you know, right. It’s a it’s a different mentality. This is a generation of people that was catered to it. If you’re a parent, and you have Generation Y kids, you spoiled them. You drove them around, you took them to soccer practice.
When I grew up, I was a latchkey kid, I came home from school and nobody was home. Just I raised myself a lot of the time, because my mom was working. Okay. And it is a different generation, a completely different mentality than my generation and a completely different mentality than the baby boomer generation, the baby boomer generation, you know, they were that their, their formative years were, were the free love generation and the 60s in the 70s and disco and all you know, that was a whole different, I mean, look at how different the mentality is of different generations. It’s mind boggling. Okay. Let me talk about population a little bit based on different states. And let’s think about this from an investor perspective, population growth. Now, the thing you have The notice here though, before I share some stats with you, is that it’s not just an issue of the size of the population, of course, it’s also an issue of the makeup of the population. In other words, where is that population on the socio economic ladder? Are they wealthy? Are they poor? Are they in the middle? Do they have an education? Do they have good jobs and careers? Or are they doing blue collar work? Are they working at fast food restaurants or driving an Uber car are they about to be replaced by a robot as Bernie Sanders and Hillary Clinton and the folks on the left push for higher minimum wage, which will simply create higher unemployment? It’s not like this is what blows my mind about the left. They just seem to think that the world operates in a vacuum, that they can just force legislation And regulation down the throat of businesses who employ people. And those businesses won’t react, of course, they’ll react, they will automate, they will find a way to eliminate people. And there’s a concept of course, I’m sure I’m not telling you anything, most of you don’t know. But there’s this concept of what’s called cap x. Okay, capital expenditure. And in the real estate business, cap x, of course, is when you do a capital improvement on a property. So say you put in something expect, you know, instead of putting a new coat of paint on the living room, you do something expensive, like replacing the roof on the house. That’s an expensive thing, right? That’s a capital improvement. And it would be depreciated over a series of years and air conditioning and heating system, same idea a capital improvement, Kota paint, that’s not a capital improvement necessarily, you know, that’s just a fix up Cause that’s a maintenance cost, right? And that, by the way, goes on a schedule. And you can expect a coat of paint to last a certain number of years. And you can expect a roof to last a certain number of years and so forth.
So when it comes to automation versus human labor, and by the way, tangent alert, this is a bit of a tangent when it comes to that subject, of course, look at it this way. automation, robotics, computers, software, any of that stuff to replace a human being has a large cap x expense, but a very low what’s called cap Oh, at least that’s what I heard what I call it. Honestly, I’ve never heard of that term before. But I heard one guy call it that recently, so I’m gonna throw it out there cap Oh is the operating expense All right. And it has a very low cap Oh expense, because if you automate the the drive the self driving car The Uber car, if you know that or the Lyft car that’s automated, then it’s expensive. At least it will be at first to buy the self driving car. Or it’s expensive to buy the burger flipping robot, or whatever the thing is, that is replacing the human being. So the cap x is very high. But the ongoing costs the operating cost of it, the cap O is very, very low. Because guess what? The robot really rarely very rarely gets sick. In other words, it needs repairs, but the human gets sick a lot. The robot doesn’t slough off the job. The robot doesn’t sue you for sexual harassment. The robot doesn’t sabotage your business. The robot doesn’t steal your clients. The robot doesn’t screw things up too much. Right? So very low cap. Oh, a human has really pretty much no cap x expense because you can Put a put a job post on craigslist today, you can hire a human, and you don’t have to pay anything to hire them. You just got to pay them. Operating Expenses time goes on, right? So the first week of course, you’re going to have to pay him $15 an hour or whatever the going rate is right for whatever job you’re talking about. And so a large cap Oh, expense for humans is zero cap x expense for humans. But the robotics and the automation are the opposite. It flips that equation on its head, large cap x. Almost no cap. Whoa. All right for the robot. So let’s go back to the topic. Jason. stay on topic.
Okay, here we go. Alright, so looking at the demographic issue again, back there, now that we’re off the little tangent 2015 the US population by state, California, this is not going to be a surprise to any of you California, Texas, Florida and New York. Combined for 107 million people, those states and the overall population in the US in 2015 322 million people. So 33% of the entire population of the country is in the Socialist Republic of taxa. fornia the business friendly Republic of Texas, and also Florida being business friendly as well. And the pie tax area, the Socialist Republic of New York, okay. So there you go. That’s how it all breaks down half and a half. Basically, you got two states that are business friendly, low tax environments, low tax Nexus, they call that and you’ve got two very unfriendly high tax Nexus areas, California and New York. But between the four of them, they make up one third of the US population. Now, let’s forecast this into the future. And look at the next 15 years. Well, really, today we’re looking at the next 14 years. But this is 2015 to 2030. And we need to dice this up a little bit, and then we’ll adjourn for this episode when we look at the population growth, the projected right. So Arizona, Nevada, Florida, Texas and Utah are the states with a top five forecasted growth rates. The top five states, and by the way, these slides are going to be available for you. We’ll try and get them up there by the end of the day on Wednesday, maybe Thursday. But if you don’t catch these, you can still catch the old ones from my last talk at the IMF conference in Scottsdale, last December. But we’re going to put the new ones up there and replace them with these that I’m talking about now.
So there’s a lot of visuals here and go to Jason hartman.com slash I am n, that’s the name of the conference I am in Information Management network It stands for, go to Jason hartman.com slash I am n and get these slides are totally free. Just give us your name and email and we’ll we’ll email them to you. Okay. Now, the seven states that have negative forecasted growth. Now, you’re gonna question me about this, by the way, and it’s going to be a fair question. Okay. And they are and this is quite a great visual here. It’s a bunch of bubbles. It’s a bubble graph. Okay. The seven states negative forecasted growth New York. I’m not surprised about that one. Oh, Ohio. By the way, we have a property tour coming up in Ohio. So you got to segment down, right. You’ve got to segment into which metro areas in Ohio, right? And you’ve got to do all of that in which price segments and that’s why this is a complicated science, because it’s not just about data. graphics. It’s also about economics. And it’s also about the real estate market, economics of that marketplace as well. Wyoming. Not a surprise, Iowa, North Dakota, West Virginia, Washington DC, okay. Now, Washington DC is of course, technically not a state.
We all know that it’s the District of Columbia with its own set of laws made for disgusting crony greedy politicians. Okay. Nothing subject. So, what does this all mean? Well, here’s the thing. If we could be investing in Arizona, my home state now, we would totally be recommending it. But the Phoenix metro market really got too expensive. That’s a hybrid market. We’ve been in and out of it over the years because we’re area agnostic part of my 10 commandments of successful investing in Nevada, really too expensive in any of the major areas. There doesn’t work right now. Florida. Well, I’m in Florida, and I’ve spent the last week and a half touring Florida. And we got a couple markets here that do work. They’re not big markets. For us though, I gotta be frank with you. I own properties in the Florida Panhandle that I’ve owned for many, many years. Florida is it’s a big, big state with a lot of different markets. Again, for detailed help on this stuff, contact your investment counselor if you have one. If not, just go to Jason hartman.com fill out any form on our website. Just take a quick 60 seconds fill out a little web form, contact us whatever. And one of our investment counselors will get in contact with you and help you really hone in on where you want to be investing based on your risk profile, your financial goals, your time horizon, you know, financial planning as applied to real estate investing. So Arizona, Nevada, Florida, Texas, of course, we’ve done tons of business in Texas over the years tons And tons of business hundreds and hundreds of deals there. But most of the Texas cities, they they got too expensive, Houston, not bad. I still consider going into Houston today.
But I issued a Yellow Flag Warning about Houston. I’m I’m definitely concerned about the oil price issue. But the economy is more diversified than it used to be. So not too bad, Utah. I was just there of course, a couple months ago, we did a jQ Jason Hartman University live event in Salt Lake City. Great event. Thank you to all of you who are listening who came to that event. It was great seeing you there. But again, that markets too expensive so we can’t we just don’t have inventory that would make sense in those markets. What else do we need to say about that? Okay, US population by age group through 2030. And we’re almost ready to wrap this up. I know this is kind of wonky stuff here. But it really matters to real estate investors, the 65 year old and above population is exploding demographers again they call this trend the graying of America, the graying of America. Now other demographers and because I have a real estate license, I can’t really talk about ethnicity and stuff like this, but I will I can fairly say the demographers have also talked about a trend called the browning of America with massive amounts of immigration, right, especially from our southern border. And that has big impact on the marketplace and on a whole bunch of things on government entitlements. All of this stuff does, right. Of course it does the graying of America big. So this population is exploding the 65 plus population all right now, the 44 to 64 population will decline through 2030. Okay, this is some of that pick. Some of the Gen X demographic, and then it starts to grow from the Generation Y graphic or demographic sorry, that demographic cohort of Gen Y, it starts to grow after that, right? The 25 to 44 population is still steadily rising. And some of that is Gen X, some of that is Gen Y. So this isn’t divided exactly along the lines of the demographic cohorts. But it is interesting nonetheless, for real estate investors. All right.
US population growth, composition 2015 through Far, far out 2060 It’s a long way away. I know don’t get too bored. Anyway, this is the last slide. We’ll wrap it up after this. The natural increase. This is birth rate, less death rate is expected to slow dramatically at After 2020 decreasing birth rates combined with increased migration point to an increased need for rental housing. So folks, sum this all up look at if you didn’t follow everything I said, Who cares? If my points didn’t come through? Exactly really isn’t that big a deal? sum it up to say this. The demographics coming into rental housing market over the next 10 years, are nothing short of phenomenal. Of course, when we talked about this, we only talked about demographics. We did not talk about the largest economic crisis in seven decades that we just went through not too many years ago, and some argue that we might still be in and we papered it over with money printing. We didn’t talk about how many 10s of millions of Americans shows on purpose. To do strategic defaults to let properties go to do short sales to do workouts, and how many people because of bad economic circumstances in general, had the left properties go or have their credit dinged up in other ways. And with that, those people are not homebuyers, but they still have a household.
So what are they doing? Well, of course, you know, they are renting renters, renters, renters. And these people, many of them make fantastic tenants for us. So there are other factors weigh outside of just pure demographics. Of course, we didn’t talk about the student loan bubble of about 1.2 trillion with a T dollars that has made an entire generation Gen Y debt slaves. We didn’t talk about the anemic employment market, how people even though you can manipulate the unemployment stats anywhere you want. We’ve had john Williams of shadow stats calm an excellent website. On a prior episode, we talked about manipulating the unemployment numbers. Of course, the discouraged workers, the people that gave up that fall off the unemployment rolls that aren’t counted anymore. The underemployed people, the person with a master’s degree working at Starbucks, we didn’t talk about any of this stuff. Guess what, sum it all up to say those are all renters. They are your renters. And you know what, serve them, provide them with good housing, and make a nice fortune for yourself in the process. It’s an amazing time to be a real estate investor. It’s an amazing time to be alive.
Join us for our Ohio property tour coming up Cincinnati market. Well, sort of between Cincinnati and Dayton, it’s kind of this in between market. Go to Jason Hartman comm check out our content test at Jason hartman.com slash contest where you can win an all expense paid trip to that, that deadline is only like two days away. So you gotta you gotta go to that mentor really fast. You can win some other nice prizes as well, Jason hartman.com, slash contests. And Jason hartman.com in the events section to just register for the tour. But hey, you might as well enter the contest too, because you might get a refund of your ticket price. Of course. Hartman education comm we’ve got our sale wrapping up there now on some of our great educational products and properties. We’ve got some good properties available. I was going to ask you today I’m doing a 1031 exchange. I was going to actually talk about having you helped me decide what properties to buy. But you know what, we didn’t have time. Maybe we’ll do that on Monday’s episode. Maybe I’ll have purchased the properties by the end and I’ll just let you know what I did.
Hopefully, I will because my time is running out on my 1031 exchange. And on an upcoming episode, we are going to talk about what to do when you have this wonderful problem that many of you have, you have a highly appreciated property. And the question is, should you do the refi till you die strategy? Or should you do the strategy I’ve employed a couple of times, or you do a 1031 exchange in the trade one property for two properties, and you increase your cash flow, and naturally, you get to refi in the process. So, there’s kind of a mixed new strategy I want to talk to you about and that is the strategy. I don’t have a cute name for it yet, but I’m gonna come up with one if I can. And just check out the properties that Jason hartman.com will talk to you on the next episode. Happy investing and thank you for listening. Be sure to subscribe to the show so you don’t miss any episodes. We upload Appreciate your reviews on iTunes or Stitcher Radio. Thank you for reviewing the show, subscribing, and telling your friends about the show as well, happy investing.
Announcer 44:10
I’ve never really thought of Jason as subversive, but I just found out that’s what Wall Street considers him to be.
Announcer 44:17
Really now. How is that possible at all?
Announcer 44:20
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? those options are for people who only want to pretend they’re getting ahead.
Announcer 44:41
Stocks and other non direct traded assets are a losing game for most people. The typical scenario is you make a little you lose a little and spin your wheels for decades.
Announcer 44:53
That’s because the corporate crooks running the stock and bond investing game will always see to it that they win this means unless you’re one of them you will not win.
Announcer 45:02
And unluckily 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.
Announcer 45:32
We can pick local markets, untouched by the economic downturn, exploited packaged commodities investing and achieve exceptional returns safely and securely.
Announcer 45:43
I like how he teaches you how to protect the equity in your home before it disappears and how to outsource your debt obligations to the government.
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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.
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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.
Announcer 46:22
This show is produced by the Hartman media company All rights reserved for distribution or publication rights and media interviews, please visit www dot Hartman media.com or email media at Hartman media.com. Nothing on this show should be considered specific personal or professional advice. Please consult an appropriate tax legal real estate or business professional for individualized advice. opinions of guests are their own and the host is acting on behalf of Empowered Investor network, Inc. exclusively.