Jason Hartman announces a new segment called Joe Investor where he will answer typical questions that investors have. Afterward, he talks to a local market specialist to reintroduce the Orlando market. He shares that the State of Florida offers asset protection, has no income tax for its residents, and is pro-business and pro-landlord, making it a good place to invest. They also talk about cyclical evolution, hybrid markets, and the judicial foreclosure states.
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 0:12
Welcome to the creating wealth show with Jason Hartman. You’re about to learn a new slant on investing some exciting techniques and fresh new approaches to the world’s most historically proven asset class that will enable you to create more wealth and freedom than you ever thought possible. Jason is a genuine self made multi millionaire who’s actually been there and done it. He’s a successful investor, lender, developer and entrepreneur who’s owned properties in 11, states had hundreds of tenants and been involved in 1000s of real estate transactions. This program will help you follow in Jason’s footsteps on the road to your financial independence day, you really can do it. And now here’s your host, Jason Hartman with the complete solution for real estate investors.
Jason Hartman 1:03
Welcome to the creating wealth show, this is your host Jason Hartman episode number 578 578. Thank you so much for joining me today. So today, I want to give you an Orlando market profile, we’ve got this excellent tour coming up. And I gotta tell you, I am really excited about this one, I must say, we had a bit of a problem in terms of the way we podcasted this. So like I say, at the risk of repeating myself, I’m gonna repeat myself. What happened is we posted this episode by mistake, went back, put the Orlando episode up, fixed our mistake, but everybody had already downloaded it already. So you really can never fix it in the world of podcasting. Because when people when the new show goes up, it just gets downloaded lickety split, you know, few 1000 people just download them right away, right. So that is why we’re running this Orlando market profile today. Because I want to make sure you hear this, it’s good. We’ve got a good operator there with a good system. And it’s a good market. So you really want to listen up. We’ve done business here on and off over the years, never in a huge way. I remember visiting Orlando many times over the years, you know, right in the thick of the foreclosure crisis. Before that, in the thick of the bubble, as you could tell the crisis was coming, and all of that stuff. But we are really super excited. We had a whole team meeting with the entire company today, where we were talking about this tour, I think this is going to be really one of our better property tours that we’ve done in a long time. So we are super excited about this tour coming up in November, mid November, just next month, and that is the Orlando property tour, it’s going to be an important one that we do not want you to miss. Also, for those of you in South America, in Europe, on the east coast of the US, Eastern Canada, whatever, Midwest, super easy. We have, I don’t think we have ever done a creating wealth boot camp. On the east coast. I’m just trying to remember Have we ever done that? I don’t think we have. So this, this may well be the first one at least the first one I can really think of. So we’re gonna do the creating wealth seminar. And we’re doing this in the divided way where our attendees, we did this once before this way in Memphis, all the others, we’ve done it in a day. But this way I like it the best. It’s it’s great because you the attendee, the student, the audience, it’s better for your endurance and your education. And it’s better for me, the speaker and I am a better presenter when I can split this up over two days. So that’s what I mean. So we are splitting this up. Here’s how it goes. You arrive in Orlando Friday evening, check into this gorgeous hotel that we have you’ll you’ll get all the hotel details and the room block rate. We’ve got some excellent room rates as soon as you register at Jason hartman.com for the event. And you’ll also be emailed the link for the smartphone app where you get the full schedule of the event but here’s the basic outline of it. Come in Friday night, check in relax. Saturday morning. We’re going to start the creating wealth seminar. We’re going to go for about three and a half hours. The bus we have a luxury motor coach picking us up it’ll take us to lunch we’ll we’ll go to a nice thematic cool restaurant, swanky restaurant, I should say why am I using the word cool? The word is swanky. Okay, anyway, we’ll go to a swanky restaurant and what else lunch. I know, I laugh at my own jokes isn’t that terrible? Talk about in offense, you really should not be doing that. Anyway, so we’ll do that we’ll go on the property tour. And then of course, you know, about an hour into it, we’ll see a couple of properties. And we’re gonna stop at a coffee shop, because Jason always has to do that everybody always. It’s, it’s like our tradition. And then we’re going to go tour some more, we’re going to tour to about maybe six 630, we’re going to look at properties, we’re going to look at them in all the states of disrepair and repair, and the middle state too. So we’re gonna see properties, pre rehab, that are awful. We’re gonna see properties in the middle of rehab, where they’re being fixed up they’re being worked on. So you can get an idea what our provider is really doing halfway, maybe halfway through the process. And then we’re gonna see completed properties that are turnkey, ready to go, ready to buy, then go back to the hotel, we’ll give you about an hour or so you can freshen up, and then we’ll meet we’ll go out to dinner at a swanky restaurant, we’ll talk we’ll debrief on the properties we saw, we’ll socialize, we’ll have fun, maybe have a couple of drinks, I can only have about two drinks nowadays. I don’t know about you, but something about it, I just I’m not much of a drinker anymore. I guess I guess I’m not a kid, thankfully, then, we will get up the next day. And we’re going to analyze the performance of all the properties we looked at. And we’re going to analyze some of the intangibles, the properties we looked at to. And then we’re going to continue with the creating wealth seminar, we’ll wrap up somewhere around 430 or so on Sunday afternoon, so people can catch flights out. And we will, you know, say goodbye until the next one, maybe to meet the Masters in January. So join us for the Orlando property tour, it’s going to be fantastic. When you hear this market profile, you will see why. Let’s just dive right into that we got a bunch of great guests coming up on the show. I interviewed john Sculley, former president of Pepsi Cola, and CEO of Apple, of course, for many years, I interviewed him yesterday. So his episode is coming up. And we’ve got a bunch of other great real estate episodes, we’re going to do a real estate investment glossary episode, where we’re going to cover some terms, and we’re gonna do this as kind of a regular thing, where we’re going to cover terms that you need to know for investing, but not just the definitions of them, what they really mean and examples of their application in the real world. We’re also starting a really interesting news segment, I think we’re gonna call it Joe investor. And that is going to be typical questions that investors have and my answers to them. So a lot of great real estate investing content coming up, a lot of great other stuff coming up, too, I know that a lot of you tell me you like the show, because it’s not just one dimensional, because it’s multi dimensional, because income property is a multi dimensional asset class, and we are all multi dimensional people. So go to Jason hartman.com, click on the events section, register for the Orlando property tour next month. It’s gonna be awesome. And we look forward to seeing you there. And let’s dive deep. And let’s look at an Orlando market profile with our guests. So here we go. Let’s jump into that profile right now. Hey, I wanted to talk today about Orlando, Florida, this area has really been one of the ground zero areas for the real estate collapse the the boom, the bubble, the bust, and then you know, repeating the cycle. But we’ve done business here over the years in in kind of a spotty fashion. I can’t say we’ve found really good teams in Orlando, maybe until now. And that’s why I wanted to just reintroduce this market to you. Of course, we’ve talked about it on the show before, but kind of reintroduce it to you and have our local market specialist talk to you today. So let’s dive in and talk about it. What is so great about Orlando, in this timeframe. Tell us more.
Orland Local Market Specialist 9:15
So Jason, first, I want to thank you for having me be a part of this. It’s amazing to be a part of somebody who really does a great job of providing great education to people. It is definitely the time to invest in real estate. And even though we all know it is the right time to real estate, invest in real estate, where do we invest in that real estate? And I think that what we’re seeing is we’re seeing a lot of people buy properties all over the country. It’s a great time to buy. What we primarily look at is we’re looking at where is the greatest opportunity exist. In today’s market, what we found was that we have what we call linear markets across the United States. We have appreciation market And then like you said, Really Ground Zero, you have a ton of fluctuation in foreclosures in a market like Orlando, Florida. And it’s really caused what we believe to be the greatest opportunity that exists because you can cash flow positive in a market, that’s highly desirable, that’s really not supposed to cash flow positive, because prices are usually too high. And now you have the opportunity to buy at a low price, you have a strong rent, and then you get to watch that market appreciate over the next several years as the population growth is one of its main drivers, as the business growth happens in this market. And we’re really seeing a lot of this now. fully take take on the recovery that everybody’s been talking about across the states in real estate, I was just going to mention some some basic facts about our market. And I think, again, anytime you want to buy cash flow property, I think one of the very basics to keep in mind is you want to be in a market that has a lot of demand and desirability, because that demand and desirability is always going to make sure that that property is rented that you have an exit strategy for that property. And that the value of that property is slowly climbing at a at a reasonable rate. So that you can get what we like to call a mixed return or an interim internal rate of return where you’re getting both cash flow, and appreciation. Not all markets in in the United States right now give you that
Jason Hartman 11:31
That’s true, you know. So you know, that sort of the hybrid between linear and cyclical, that is nice to capitalize on when you can. And the great thing you know about your perspective, is that you’ve done and really are doing business in several markets, I’m finding this to be more and more prevalent, that really good players in the real estate industry will actually change their whole life and move to different markets based on some timing, although I’ve never been one to, you know, totally buy into the theory of market timing. I always like to say, and maybe it’s kind of a disclaimer, I’m not sure, but, you know, I’m definitely a cash flow investor, I used to be a speculator, you know, had mixed results with that some very good, you know, gamblers get lucky too. And you can definitely hit some home runs if you’re in the right place at the right time. But you know, I always like to say that I’ve never been a I’ve never met anybody who can really, really reliably predict appreciation or depreciation. That said, though, I think if you’re if you’re looking at it from a sort of a moderate perspective, and you know, you’re just wanting to do you know, maybe four to 8% appreciation, maybe even you’ll get lucky and get 10%. You know, that’s not that’s not the hitting it out of the park mentality at all, you know, like, where I live, right, La Jolla, California, San Diego area, you know, where all these people around here who call themselves investors think, Oh, well, yeah, I just bought this property, and I paid a million dollars for a condo. And I think it’s gonna go up 15% next year? Well, you know, but in the meantime, I’m getting terrible cash flow. And if it goes the other way, I have an unsustainable investment. That’s really, really risky. But that sort of hybrid mentality. I think it’s legitimate. Can you speak to that a little bit?
Orland Local Market Specialist 13:24
Yeah, you know, first, Jason, I don’t think you know this about me. But it’s, I want to share a really funny story that that speaks to this. I actually did three and a half years ago, overnight, pick up all of my stuff and move to Orlando, Florida, for these reasons.
Jason Hartman 13:41
Oh, no, no, I knew you moved because you’ve been in the Las Vegas and the Tucson market too.
Orland Local Market Specialist 13:47
And, you know, it’s really interesting because the market that I moved from, which was Las Vegas, Nevada, because of a small smidge of a difference in how the state of Nevada and how the state of Florida operate. One being judicial, one being non judicial.
Jason Hartman 14:04
Now, what you’re referring to is the foreclosure process, meaning, and folks, of course, we’ve talked about this on the show before and I hope you’re gonna speak to this. And this is the concept of market clearing. And what I want, you know, what’s known to economists is price discovery. And in these judicial foreclosure states, where it’s such a slow process, like we do business in Illinois, as much as I hate the politics, you know, but the Chicagoland area has got a lot of attractive features that don’t have anything to do with Obama, rahm emanuel high taxes and and poorly managed government. But it’s got a lot of other very attractive things. Okay. You know, it’s a world class city. So there are multiple reasons to consider things. But you know, there we’ve got the same thing you’ve got in Florida, the market hasn’t cleared yet. And it’s mind boggling that this many years after the Great Recession, we’re still talking about a foreclosure market. So, three and a half years ago you moved on.
Orland Local Market Specialist 15:03
Yeah. And you’re absolutely right, that is exactly what occurred. And the Las Vegas market on top of it being a non judicial state. And as its has its ability to clear a faster, there was also a bill that was written right before the elections in 2012. In November of 2011, there was a bill that stopped the foreclosure process and said you cannot Robo stamp documents. Now that bill was also applied to the Florida market. But the real difference is I remember sitting there and I’m buying properties at auctions on the market, etc. And I remember the amount of homes on the market went from about 20,000 homes down to about 1500 homes overnight. So when you take away all that supply right away, what happens is it drives that price rapidly upward. And so when that price drove upward, or too rapidly, it took away the ability to buy cash flow property in that market. So as we’re looking at the Las Vegas market and seeing all the benefits to it, we’re saying where else can we go that mimics Las Vegas. And we know that we can’t predict the price or the appreciation. But if we just experienced and saw what happened in Las Vegas, if we find another market, it’s very similar but has a difference in the way that it’s managed. Maybe we can go in there and do a more conservative return, like you mentioned. And so that’s exactly what we did. Now, all the investors that purchase properties and us and we bought properties in Las Vegas, we did really well because of the timing in the market. But we did not buy with the idea of appreciation. And the dream moment that you mentioned that sometimes people buy we bought because it was a sound investment from a cash flow perspective. And it was in a desirable place that if the market did turn, that we would also get those benefits of appreciation. So when we came to the Orlando, Florida market, there were some very important things that we can mention. We, we saw that the replacement cost of these homes every time we buy one of these properties. And let’s say we buy a house for $100,000, the insurance is then insuring that property for $165,000. Because that’s what it would cost to replace that property. That’s what it costs to originally construct that property. And so anytime that you’re buying below replacement costs, that’s a good thing,
Jason Hartman 17:32
No question about it. And I just want to remind my listeners, that I actually make a distinction between the concept known as appreciation, and a different concept that I call I got a little trademark term for this, I call it regression to replacement cost. And I really think those things are different. I’m still working on this theory a little bit. But you know, appreciation is what happens when you’re at par when you’ve got the land value and the improvement value at replacement cost. And then you get appreciation on top of that. That’s appreciation, regression to replacement costs, is really just a matter of, you know, using a gauge for when a price of wood cost what a price of wood is worth, you know, if you will. So that’s a good market. But I you know, I just want to ask you something, of course, we’re talking about Orlando, but because of your experience in Tucson and Las Vegas, Las Vegas, you would probably say is a little frothy now a little overvalued, I would assume or what do you think about that market?
Orland Local Market Specialist 18:37
I’m not sure I would call it overvalued.
Jason Hartman 18:40
I mean, that’s one of those massively over speculated markets, right? It felt like, you know, in say 2000 to 2003, even 2004 and five, certainly, that it felt like everybody in Southern California had two rental properties in either Vegas or Phoenix. And that made those markets go nuts, right?
Orland Local Market Specialist 19:02
Absolutely. There’s definitely something to be said about a market that its natural growth is ready to occur. And it needs time to grow naturally. So if you take California, for example that you’re referencing, and you look at anywhere between the 1960s 70s 80s and 90s, and all Southern California, that was its natural growth that needed to occur, it had a lot of population, it had to build neighborhoods, etc. Job growth had to happen. So I believe there’s always a natural growth in the economy that needs to happen in certain places. So when you take a look at Las Vegas, or Florida, there was a natural growth that needed to occur there between the 1990s and the early 2000s. But what happened was in combination with many things, the entire economy was just growing too rapidly and the loans that existed for people to buy as their own personal property. just drove that price. And you’re absolutely right, Jason just drove it to where it’s an overvalued environment where the jobs just do not support Now, what’s interesting is I see that changing quite a bit. And it’s because there’s a whole different kind of movement going back to Orlando, Florida. And one of the benefits to Orlando, Florida is, we have so many large companies that are coming to this market. When you’re when you’re looking at, you know, Walt Disney is just someone who spearheads this. And then you have a lot of your medical city that’s being built, and you have all the doctors and you have all the tech, you know, they’re really trying to make Orlando be like the, like the what’s the place I’m thinking of in San Francisco, that everybody’s all tech, Silicon Valley, they really wanted it to be the Silicon Valley of the southeast. And it makes sense because there are basics to Florida, that make it an environment where you want to invest in, when you think of the the fact the state’s business friendly when you think of that there’s no state income tax, when you think of all the low property taxes, the landlord friendliness of it. All that is our basics that create an environment for growth and job growth. And so we’re seeing that happen. And we do believe that it happening at a more reasonable conservative place instead of Las Vegas, where you’re absolutely right. Recently, the values have jumped up just because there was a great deal to buy there, not because the markets recovering and it’s very safe manner like it is in Orlando.
Jason Hartman 21:26
Right, so Las Vegas, what people have to remember overall, is when you get away from the glitz and glamour and a couple of really high end gorgeous areas, by the way, Las Vegas is really kind of a poor city. You know, there’s there’s a lot of a lot of people struggling there and a lot of people on, you know, in part of, you know, what’s known as the working poor. So it’s, uh, you know, it’s anyway, we’re not talking about Las Vegas in this episode. It’s not what it’s about, but I just wanted to ask you some of that. So you know, Orlando has a population around a quarter million people, you know, that 77th in the US? What else would you say about it? Everybody knows Disney, everybody knows Disney World, of course. What else is going on there in terms of employment?
Orland Local Market Specialist 22:10
You know, I started mentioned, there’s a lot of medical, there’s a lot of tech here, you know, some of some of the things that anybody can can go out there. And Google is the environment of, you know, Lockheed Martin being here, and Mitsubishi being here, and Darden restaurants and Verizon Communications, a lot of these major players are in the market. But I think that, and this is something that you really got to get from a feel of being in an environment, and really understanding the growth. There are certain things that I’d like to say the mentality of the city, again, what is the environment doing here, they have teams that are driving business growth, driving software companies to the market, they have major Orlando city soccer teams that are coming into the market, they’re building brand new stadiums, you have the Orlando Magic, you have more of a well rounded city that has all the benefits for anybody to come live here and enjoy life. And I think that when people are enjoying life, and the population growth is in the top five over the last 20 years, it really speaks to a city that has not become a major city, but will be a major, major city. And when I say major city, everybody knows Orlando, Florida. But Orlando, Florida is not Los Angeles. And it’s not Miami, and it’s not New York, but I think it’s got all the basics of what it can be for its future, a New York, a Los Angeles. And what that means from an investor’s perspective is the direction of this market. And the mentality of its job growth, population growth and environment for lifestyle is what really is going to drive that appreciation and that cash flow in your investments. Take for example, there’s a huge expansion happening right now with our main Interstate, our four, the four freeway out here. Take, for example, our surrounding communities around the Orlando market are now having light rail systems that have been implemented already and are up and running. These are some major things that are happening in our cities that are not occurring across the United States in other cities, and you’re able to buy these properties at a value where it’s below replacement costs. I loved your theory that you mentioned a few minutes ago, I would just add on to it that, you know, it’s really the correction in the market that we’re still going to seek as far as value. So what I mean by correction is if we’re buying a property for 100,000, it will not appreciate to 150 it has to correct itself to 150 And then you’ll start to appreciate keeping in mind that in the surrounding neighborhoods that we buy properties, people used to own these very same houses for two and three times what we’re paying for them now. So it’s like the theory of somebody paid $5 at the gas pump before, and then it drops to $3. With the right financing and leverage, would they buy that gap? And at at the $3 mark, and so I think that’s what you’re going to see in our general population here. And also, this is what definitely separates us from many other markets, where people are buying real estate as well. Yes, we have investors buying in Orlando right now. But I think our future shows the sales happening to families and people who are growing and living in Orlando. So when you exit the property here, for X amount of dollars, you’re going to be selling it to somebody who either lost their house previously, or they’ve moved into this market. And the financing is starting to exist across the board for everybody to go back into the market, and own their own home again. And so I think it’s our cyclical evolution, and uniqueness of Orlando, that really makes it a great opportunity to buy at a low value and exit at a reasonable value. And if it if you do a lighter conservative appreciation of it of six to 8%, you’re still in a market, that’s extremely desirable. That’s going to give you great cash flow returns, and then great appreciation returns.
Jason Hartman 26:32
Okay, so looking back at that, well, before we look, I want to look back at a little bit of Orlando history if we can, too. But you know, and I’m just talking about sort of Great Recession era and kind of what went on there and some of that stuff. That’s, that’s still working itself out of the system, because we talked about the slow foreclosures, but speak about the landlord friendliness issue. This is something we definitely look for in markets. We like markets that are friendly to our causes landlords, if you’ve got a deadbeat tenant, you got to get them out. I mean, society really depends on being able to enforce contracts. Otherwise, you know, it’s it’s like Trickle Up poverty, it’s it’s just a, you know, it’s a disaster if one if one party can’t keep their contract that, you know, it’s the domino effect onto another one. We need tenants and a regulatory climate that’s, that’s friendly to us as landlords,
Orland Local Market Specialist 27:26
You know, I think, again, with everybody knowing look, now’s the time to invest in real estate. So where should I invest, and you start comparing different states and markets, and then you figure out, okay, Orlando, is one of those great markets that we want to invest in, because a, it’s a good deal, be its landlord friendly, see, have the right team. So when we talk about it being landlord friendly, I think we can also start talking about our team and how we operate as a management company. You know, when you are managing properties in somewhere, for example, like California or New York, and you have to go through the eviction process, you’re likely to have to hire an attorney to do that, what we’re able to do is we really do our evictions in house, and an eviction in New York, California may cost you 1000s of dollars, where an eviction here in our Florida market might only cost you two to $300 in a couple of recording or document fees to the county. So again, the benefit there is having our team in place that does that for you. And then having the kind of environment where the timing of the eviction is, it can can happen pretty quickly. So we can evict somebody in the Florida market within the month. The benefit is that when you’re doing your projections and your numbers on your investment, you want to let’s suppose that you say that your property is going to be vacant for a month out of the year. If you weren’t able to evict somebody in a landlord friendly state like ours, then you would be going multiple months without that income. So those are one of the benefits. You know, I do want to continue to speak on our team and just in general, how we operate. You know, our management company was really built for investors by investors. And we originally as a company only invested in real estate for ourselves for a long time. And we had been buying a lot of turnkey properties from 2008. Up until 2012, we’d bought several 1000 properties for ourselves. And it wasn’t until about three and a half years ago.
Jason Hartman 29:43
And you’ve got, by the way, I just think that’s a good spot for you to talk about your personal portfolio. You’ve got what about 100 properties in your personal portfolio now?
Orland Local Market Specialist 29:51
That’s correct. We have about 100 properties in our personal portfolio and one of the things that we’ve really moved to do in our personal portfolio over In the last year and a half, is we’ve really moved to start to leverage and really employ the idea of leverage with rates being low. And the market changing. You know, there’s a lot of portfolio, oil lenders that didn’t exist before that exist there now. So once you get to a stage where you have so many properties, you know, to really take your business to the next level and start doing other things like buying large commercial buildings or buying just more single family homes. I think leverage is one of those ways in today’s world, that you can do that. And so we’ve been working hard at it. And we, myself and my wife, we own a little over 100 properties. And we also own some commercial buildings. And
Jason Hartman 30:47
Okay, so Orlando, yeah, like it landlord friendliness, how tell us about the eviction process, you know, God forbid, I always say, plan for the best prepare for the worst. So hopefully, no one’s going to have to do an eviction. But if they do, how does it work? How long does it take, you do it in house, you’ve got the management company, as part of the offering. Right?
Orland Local Market Specialist 31:09
Right. So it’s, it’s, I’m going to share a combination of things, I’m going to share how it works legally with you, and I’m gonna share how a good management company works with tenants. Ultimately, you don’t want to evict your tenants, because every time somebody moves out of your property, it costs you money. So we’re a big believer in protecting ourselves legally, but working together with tenants, especially when you want to reap the benefits of being in a hot market like Orlando, Florida, you have to understand that over the last five to seven years, we’ve been in a very down economy. So it’s all part of managing properties through that process of the economy recovering, you know, when you take employment that used to be in double digits, and it’s down now to 4.9, you have to understand that there weren’t that many people that were doing a great job of paying their rent in 2012. But Fast Forward 2015, we have that same tenant, and now they’re doing better, they have better jobs. And so I guess what I’m trying to say is, you really have to understand the combination of managing these rental properties with what’s happening in the economy, you’ve got to have a lot of common sense, you’ve got to invest in these properties, and then treat them and manage them like an investor also. And I really think that’s our biggest difference in the way our style of management is, with your regular management out there on the street. So legally, what we do is we issue a five day pay or quit, we usually will issue that five day pay or quit between the seventh and 10th of the month, depending if it falls on a weekend or not. Then after we issue that five day pay or quit, you’ll issue them a 24 hour notice. And after that 24 hour notice, then you’ll take all your court documents, and you’ll fill those out, you’ll take them down to the courthouse, at which point they’ll schedule you for an eviction or a hearing, or they’ll send paperwork out to the tenant and seeing if they want to contest and then you’ll have a hearing and it’ll be pretty cut and dry. And I think this is where it becomes very landlord friendly. The judge is gonna stand there and say, Hey, have you paid rent? And then they’re gonna say, Well, no. And they’re gonna give a reason why. And the judge is gonna say, well, but you didn’t pay rent, did you have a scan, he’s gonna pretty much order them in the next 24 hours to have all their belongings out of the property. So that whole process takes as little as two weeks as long as three or four weeks, depending on scheduling,
Jason Hartman 33:42
That’s really fast. So even with a tenant that knows how to play the system and contest the eviction, I mean, you get them out that quickly. Hmm, that’s, that’s good.
Orland Local Market Specialist 33:52
You know, I think the other reason we get them out even faster than that is that we, like I said, have a different mentality of managing our properties. When a tenant is late past five days, we will start on a commitment with them or a payment plan. If they do not follow that commitment plan, their document they signed to have a payment plan releases their right to go through that eviction process, they actually have to just if they don’t, if they don’t follow that payment plan, we have the right to go file that document and then have the sheriff go evict them 24 hours later. So in-house, we’ve really created an environment where they want to stay in the property, they’ll commit to it. If they don’t follow through, then we have a right to skip the whole eviction process. So we’re even faster at times.
Jason Hartman 34:51
Okay, what else do you want people to know just in wrapping up here about real estate investing in general or the Orlando market?
Orland Local Market Specialist 34:58
You know, I think that the greatest transfer of wealth is definitely happening over the last few years. And I think that there is always the desire to have a crystal ball to invest. And I think rather than have a crystal ball, I think a lot of great education and using a lot of our experience and your experience in real estate to really make the right choice on where you’re going to invest. I always ask myself, can I buy a property in Orlando for $100,000 10 years ago? The answer is no. Can I buy a property in Orlando 10 years from now? The answer is probably not. So is there an opportunity to buy something that’s truly unique in the real estate market now, versus buying something somewhere else that you could buy for that same price 10 years ago, or 10 years from now. And so I think that there is a lot of correction, like you mentioned, Jason, that needs to happen in our market to get us to replacement cost. I think once we get to replacement costs, there’s a lot of lending and movement happening with the banks where the general public and all the high population and demand of Orlando, Florida is going to have the opportunity to buy a house again, I think that that’s going to continue to drive our prices up. I think as our prices drive up and together with inflation will definitely be a market that’s leading the charge to increase rent rates. And to increase the appreciation and value of these properties. I think that’s going to happen with a combination of our infrastructure, our business, our growth, and the the kind of mentality and environment that not only we have as a company, and how we invest in our properties and the places we invest, but also the mentality of the city and their aspirations for growth and and the movement for Orlando and its future.
Jason Hartman 36:46
Yeah, good stuff. Good stuff. Well, thank you so much for joining us today. And listeners, I tell you, that was a great talk. And especially with the 10 years in either direction example, I think so good stuff, talk to your investment counselor, visit Jason hartman.com. Check out the properties on the website, I think you’ll like what you see, again, I’ve been to Orlando many times, we’ve certainly done business there over the years. You know, I think I think the opportunity is good. And as I always say, a big part of this equation is having a good team in the market. You’ve constantly heard me say over and over on the show, I’d rather have a B market and an A team than an A team or wait, sorry, yeah, that’s right. I got that wrong. I’d rather have a B market and an A team than AI and a market and a B team. Because the team is so critically important. But in this case, you know, I really think we have both. I mean, certainly you would have been better off investing in Orlando or anywhere for that matter. Four years ago, no question. But four years ago, you know, very few people had much confidence in the market. And the opportunity is still there in these linear possibly about to go hybrid markets, I think is a really ideal opportunity. And so those markets, I believe are Orlando, I believe are Chicagoland areas like that, and a couple of other markets as well. And then the vast majority of the rest of them just hybrid, reliable, dependable cash flow markets. not sexy at all, but good, stable, great markets, too. So they’re all at Jason hartman.com. Go take a look, we look forward to helping you with your investments. Thanks again.
Orland Local Market Specialist 38:27
Thank you.
Announcer 38:31
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Announcer 38:39
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