Jason and his mom take a look at what all they learned during Profits in Paradise. They discuss the high quality of construction being done by their team in Florida, what they learned about their real estate business and takeaways from the Wealth Simulation game Doug ran.
Investor 0:00
When you’re in your car and you’re listening to that podcast, you’re not really thinking about the fact that people are real and accessible on the other end, maybe you’ve reached out and you’ve gotten contact with an investment counselor. Again, they I wouldn’t say they have star persona, but they’re really not these tangible, real people. When you go to these events, all of these people become real, you get to look them in the eye and shake their hand. And then you’re surrounded by like people that have a passion for real estate. And it all becomes more real and it creates a sense of community. And so I would really strongly encourage people that have more than a casual interest about real estate that are wanting to do more than just be that passive investor through their investment counselor. And like you said, that’s a great if you’re doing that, but if you have an interest to do more, I really do strongly encourage people to come out and be in person. The experience is very different from when you’re listening on the podcast, and when you are In person, hearing the conversations
Announcer 1:03
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. And now here’s your host, Jason Hartman with the complete solution for real estate investors.
Jason Hartman 1:53
Welcome to Episode 1312 1300 and 12. Thanks for joining us today. We are at this gorgeous resort. We just finished the prophets in paradise conference over the weekend. Everybody, I think, just totally enjoyed this resort. We’re at the Hyatt Regency grand Cypress, just a stunning property. I stayed here a couple of times last year, on a couple of trips to Orlando. And I thought, I really want to have an event here. And, you know, thoughts are things thoughts become reality, whether it be your goal, to have a big real estate investing portfolio, or whatever your goal is, whatever your plans are in life. It’s just amazing to me how I think something and then just later it just happens. You know, it’s that’s truly an amazing power that I think is massively underappreciated in life. And I started the conference Saturday, it’s now Monday, Saturday morning, with a talk on how thoughts are things and how as real estate investors, we’re not just in the business of atoms of material things, right? That’s how we think of it. We use houses, right? And we rent these houses out. This is all matter. Its material stuff. It’s made of atoms. But I talked about the information component of our business as well. Those are the bits and the bytes, the binary code, the 1001, right? And how that impacts our business and our profit margin and our return on investment. And I talked about how there’s no such thing as a copy of anything. In the digital world. When you know, you copy a song, or copy anything, you don’t really copy it, you just create a new original. And the beauty of income property investing. Well, one of the many beauties of it is that it’s hard to recreate right? It’s easy to make a copy of a song and send it to your friend ask anybody in the music industry. remember years ago, they were suing their fans for using sites like Napster and Amazon All the rest. And so there’s these two worlds, there’s the world of atoms, and material things. And as real estate investors, we really think of ourselves as dealing in that world. But there’s also the world of bits and bytes of information. And we talked a lot over the weekend, about the bits and the bytes and how those influence our investments. My friend, Mitch Russo, is the author of two great books. One is called the invisible organization. And then another one is called power tribes. And he spoke a lot about how we, as real estate investors, basically run these invisible organizations. His book was geared more toward business. But as real estate investors, we really have another business. Maybe we own a business, and that’s the way we produce income to invest in properties. Maybe we have a career a corporate job, and we produce income to invest in properties that way, but we also have this side business Real Estate Investing portfolio. So we talked a lot about that because basically we’re all running invisible organizations as real estate entrepreneurs. And we talked a lot about software tools and just amazing things we as real estate investors can do to just increase our return on investment, make a lot more money a lot better return with a lot less effort. The tools we have today, in terms of the bits and bytes are truly truly amazing. So I’m sitting here with one of our conference in attendees. Well, two of them, actually, my dog Coco, our mascot, our house dog at every conference, and you know, we’ve been doing that for, I don’t know, 10 years Wait, my other dog used to come to the conferences. And when he passed away, then we had Coco coming to the conferences and so everybody loves having the house dog. And that’s really fun. But also my mom comes to quite a few conferences and my aunt Joanie as well. And of course they are big real estate investors in their own right and so We are sitting by the pool at this beautiful, beautiful property here at the Hyatt Regency grand Cyprus. The number one best resort in Orlando, a hotel with its own Wikipedia entry. Look it up Hyatt Regency grand Cyprus, and we just had a phenomenal weekend hosting the conference here. Mom, what are some of your impressions about the conference and the different speakers and well, you know, I what I’d like to have you start off with is talking about the property to her because I did not attend the property to her. That was on Friday, kind of a pre conference tour. I was busy getting ready for the event. How was the property tour,
Unknown 6:36
the property tour was excellent. We drove up to Ocala and the first thing that we did was get out of the bus, the two buses and join all of his team under this tent for a fabulous lunch. That’s a great way to start things off with food.
Jason Hartman 6:54
Well, they know the weight of your heart is invested. I saw the pictures and it looked like they really did a first class job. Absolutely, yeah. Now I heard that they had kind of a round table. I think this was during the luncheon before you were really looking at I mean, the for the luncheon was at a property it was at one of the properties you could buy, right. But then you went to some other properties. But I heard they had kind of a roundtable where everybody was sitting on barstools answering like different questions about different phases of working with this local market specialist. And of course, we have local market specialists in many parts of the country. This was just one of them in one particular market, how was that kind of roundtable that they did,
Unknown 7:31
and that was very good introduced us to all of his various members of his team. It’s kind of nice to put a face to, you know, the name. I think there were approximately eight members up there on stools, you know, telling their specific part of the job that they did whenever someone buys a property.
Jason Hartman 7:52
So you know, it’s it’s customer service, customer relations, the acquisition manager that’s acquiring the properties or dealing With the development of them, depending on whether it’s a rehab or new construction, and they do both, and then all of those team members in terms of the do the contracts, and see you through the process, oversee the inspections, the appraisals, financing, any thing you want to say about any of that,
Unknown 8:18
no, I would like to get straight to the properties. Okay, I just want to and I didn’t get a chance to say anything to his team members. But we saw quadruplex and then we saw single family home. And I want to tell them, that this single family home was so impressive to me. I happened to be apparently one of the first of the people off the bus, and I walked into the doorway of that house. And I saw how this sink was, you know, the, the counter of the sink and the way it was configured. And that was such an excellent feeling that you got when you were Through that doorway, he should try to design all of his single families in that manner. Because when you walk in the floor and the view of that kitchen, it just made you feel at home and feel that if you were a renter, hey, this would be a first class property. And if you were going to be an actual owner of the property, you would want to live there. It was very, very nice. I can’t get over how good it made me feel. That’s what I try to do with my own rental houses. I try to create that feeling when the people first walk in the door. And I usually always on my own properties, get these comments. Gee, this is beautiful. Jesus is really a nice house. So that same thing applied to my feeling when I walked into that single family home do
Jason Hartman 9:47
so we’ll sum that up when you say you liked the quality of construction and the design, right?
Unknown 9:52
Yeah, it was just excellent. Yeah,
Jason Hartman 9:54
yeah. Now did you like the four Plex properties? Now you for your portfolio? You don’t own any plexes I don’t think you ever have you own all single family homes? Right?
Unknown 10:02
That is correct. I don’t own any for plexus. But those four Plexus were very good. I mean, you you walked in and they just were, you know, really good properties. They have everything that you really need. And I think it’ll be a successful situation in Ocala.
Jason Hartman 10:20
These properties you can see on our website at Jason Hartman calm basically what our local market specialists do when we have an event coming up, like a property tour or a conference, they’ll hold properties for the attendees, and they won’t be published in advance. But afterwards for any leftover inventory, they do get them up on the website. So if you go to Jason Hartman, calm probably middle to late this week, you’ll see any properties there and then you know, of course, they’re constantly generating new inventory, whether it be through acquisition and rehab, or brand new construction. Both are true and both are coming up. And so yeah, we just got great feedback on that tour. I think We had like 43 people on the tour if I’m not mistaken. And then at the weekend, we had more people. Tell me about your impressions of the event itself. You know, we started Saturday morning, as I talked about with my talk on bits and bytes and Adams and everybody at the beginning, I think thought What are you talking about? This has nothing to do with real estate, but then it did have a lot to do with real estate, right?
Unknown 11:25
Yes, be careful what you think, or what you wish for. Because it can very easily come true.
Jason Hartman 11:32
Yeah. Then we had, we had a bunch of panels. Now this event, this conference was a little different than our others. We really didn’t focus as much on speeches and presentations like we usually do. This one was more fireside chats. You know, we had some big comfy chairs on the stage. We had carpeting on the stage and Coco my dog love to sit on the carpet and be the center of attention there. And well, while the panel We’re discussing things. But the first panel, you know, we had a few people on it. But we had our client, Rabbi Moffat, who you’ve heard on the show before. And wow, I just love some of his content. He gave a speech at the end of the day. And that was just phenomenal about happiness and investing. And you know how to put all that together. But the panels were really interesting. And it was kind of a different take on a conference. I mean, you’ve been to a lot of our events over the years. What are your thoughts about that?
Unknown 12:28
I like conferences where I can learn brand new things. I was amazed at to some of the rabbi’s comments on how a certain amounts of income make you happy or not so happy. It was amazing to me. I think it was something like 70,070 $5,000 most people were pretty happy with that kind of right.
Jason Hartman 12:51
But remember, and I’ve talked about these studies before, it depends where you live, and you gotta adjust that for inflation, right?
Unknown 12:57
Well, of course in New York City seven 5000 you’re happy, okay. But in Ocala $75,000 will probably be very good for you.
Jason Hartman 13:08
So just remember when you’re thinking about income, and you’ve got to also think about network, because there’s really two things that equation there’s how much is your income? And how much is your net worth? Those are definitely two different factors. So now you’re talking about just the income side of that equation.
Unknown 13:24
Correct. His study was so very important. And in some areas, you really had to earn about you would be very, very happy if you’d earn $250,000 a year. So I don’t know. It was just very interesting, this statistics that he decided and I was happy to learn that
Jason Hartman 13:43
Yeah, that was that was good. Then we had James Malin check spoke. He’s kind of this. I don’t know I want to say like 80s style motivational speaker. And you know, at first he comes on kind of strong and a little bit gimmicky and people are thinking like, I don’t know about this guy. But I just loved his talks. He gave two talks, one on Saturday, the other on Sunday. Two different topics. You enjoyed him, I think, right?
Unknown 14:09
When I adored him, maybe the millennials thought he was a little bit gimmicky. But I tell you, he was so warm and so real. I just couldn’t get over him. I just adored him. As a matter of fact, I had him, he gave out his books. And I had him autograph the book. And I just adored him.
Jason Hartman 14:29
I thought he was great. And I love how on Sunday, he sort of dissected his own presentation to some extent, and shared with the audience like these hidden persuaders inside of his presentation. And on Sunday morning, it was all about getting people to say yes to you, right?
Unknown 14:48
Yes, he also did something that was very good. He told how he was an absolute failure and trying to get people to buy his course and at the end of the course, They all came to the back of the room and he said, Are you going to take my course and everyone was going to take someone else’s course. So he learned this great lesson. The point of my comment is, you can learn so much more from your mistakes sometimes than your successes.
Jason Hartman 15:14
Very true. Very true. And I talked over this weekend about the great richard nixon book, which is Richard Nixon in the arena. And he talks about that, you know, I mean, talk about a politician who had big ups and really a terrible lows, right, good old richard nixon from from the early 70s talks about how failure that doesn’t destroy you makes you stronger. And, you know, if you think about that, it’s so true. We’ve all heard these cliches, you know, gems are polished by frictions. Steel is hardened by fire. We’ve all probably heard the metaphor of when you go to the gym and you work out and you observe your body, what you’re really doing is you’re tearing your muscles apart, and the only way they can grow is to tear them apart and let your Your body rebuild them stronger. You think about that, too. You know if you cut yourself, right what happens your skin while your body I should say, but it forms what a scab and the scab is thicker skin, it’s stronger. So that it it makes a bigger effort to protect itself and strengthen itself. And that’s part of the biology.
Unknown 16:20
That’s like rehabbing a house, you’ve got to tear the house apart. And then you put it all back together. And it is so much more of a beautiful product than when you first looked at it. So you got to tear it apart. You got to go through some trauma, and some mess and then you build it back up again. And it is so much stronger and better.
Jason Hartman 16:41
Yeah, that’s great. I love it. That’s so true. And James also talked about one of the really tough things that happened to him, where he was trolled online and, you know, he wouldn’t let this one speaker speaker his events anymore and the speaker just went out and just tried to ruin his life. By saying all these bad things about them online and stuff, and this is the world in which we live, I had a competitor do that to me before. It’s something It really is. And so these things, they can make you stronger, but you got to hold them right in your own psychology and deal with him. So that’s just true of any part of life. Like I said, you know, when I talked about the TV show billions, couple weeks ago, it’s it’s just great show if you haven’t seen billions, watch it, you’ll like it. It’s great. And also Chernobyl, by the way, that’s the other one you got to see. And that was a great series. And billions you know, I just shared a story about how they got sued because they were, you know, someone said they copied them and stole the story. And you know, I don’t know what’s true or false. Okay, I’m just saying that Behind every successful person, every little Empire, every success every successful company, man, you don’t see it, but those people are companies have fought some battles because When you stand up and you stick out, people are going to try and they’re going to take shots at you. It’s just the way life is. It’s a really ugly part of human nature. It’s just the way it is. We had a lot where we talked about, you know, some real specifics about investing some real tactical things. And one of the parts that I really enjoyed was Sunday, we had my friend Mitch Russo speak. And he wrote power tribes and the invisible organization. And, and when we talk about the invisible organization as it applies to real estate investors, I mean, we really are running invisible organizations, aren’t we?
Unknown 18:36
Yes. I had no idea that when I was an active real estate broker, that I was running an invisible organization, but Mitch gave a name to it.
Jason Hartman 18:49
Yeah, and that was an investor, though. You’ve been doing that for many years. For decades, right?
Unknown 18:53
Yes. But before I actually had a business business where I had other Real Estate Agents, we didn’t have an official office, everyone worked for their, from their home. And they were very happy to do this. And I was really happy working from my own home. Once in a while we would have a meeting, but we could have the meeting wherever we wanted to. There just was not the limitations that one has, from a physical business, like a restaurant or hair salon or any of those small businesses that people have.
Jason Hartman 19:30
Yeah. And that’s the great thing about your real estate investing empire that you’re building, hopefully listening to this, hopefully, I’ve inspired you to do that. You can run it from anywhere in the world. And that’s what we teach people how to do is remote investing, you know, the properties, there are the atoms, they need to be there, the physical matter, they need to be in certain markets. That make sense, right. But you can run this empire from anywhere on the planet. And we talked a lot about specific tactical stuff, software programs that you can use software as a service based websites that provide this service that service how to architect, your real estate investing business. When I say that, you know, some of you might be thinking, that sounds like too much effort to me, I don’t want to run a business. I don’t want to run another business. I’ve done that before. And you know, the point of investing is I want to have passive income. Well, like I’ve said many times over the years, passive income, isn’t there. Okay? We got some kids running by here and they’re coming from the pool looks like passive income is a myth. They’re just varying degrees of passive income property is pretty good. In terms of that, you know, it’s pretty good in terms of how passive it is, but it’s not passive. Anyone who tells you real estate investing is passive is a liar and a crook. Do not believe them. There is no such thing as passive real estate investing. It simply does not exist.
Unknown 20:56
There is no one who will care about your money, as Well as you do, and if you think you’re going to pass off the responsibility to someone else, and just passively put all of that money into your checking account. That is a total myth. Yeah,
Jason Hartman 21:15
I couldn’t agree more. But there are some great tools to hold people accountable. And to make that easier. So, you know, in the future, maybe the next week or two or three, we’ll get some edited clips with some of these gems of knowledge from the weekend and we’ll share them with you here on the podcast. Mentors girlfriend came to the event along with him, he was a speaker, so and she wrote this nice little note to me today and I, I thought, Mom, if you can read it, you know that that would be good for the audience.
Unknown 21:48
Okay, the note says Mitch, would you please kindly do me a big favor? I want to say this to your friend Jason Hartman. Good morning, Jason. With all due respect, I do apologize. And regret for not taking the opportunity to speak up when I had the chance during your amazing conference. So here it goes. Jason, you’re awesome. You did an amazing job with this real estate conference. I want to thank you from the bottom of my heart for allowing me to come to your amazing event. I am eternally grateful, appreciative and thankful for the experience and for your generosity. It is my pleasure to have met you, your mom and of course, Coco. Sincerely, Dahlia, have an amazing day.
Jason Hartman 22:37
Well, that was nice. And we had so many nice comments from the event. So I just love our clients. I love our attendees. It’s always great. You know, doing live events is a lot of work is a lot of work. But we do them several times a year, just because we love to see everybody we love to while we love to have drinks with them. We had quite a few drinks actually this weekend and then And meals and, you know the luncheon at this beautiful restaurant on the property. Really, really nice. Any other thoughts? You want to share, mom? And let’s wrap it up because we’ve got producers pick today. So I’ll tell everybody what that is in a moment.
Unknown 23:15
One of the fun highlights of the conference was the group’s participation.
Jason Hartman 23:21
Oh, making the world simulation. Yeah.
Unknown 23:22
And the wealth simulation game and picking the various properties. And the amazing thing. I think the winner was the slum dogs,
Jason Hartman 23:30
or the slum lords, the slumlord millionaires. Yeah,
Unknown 23:33
yeah, that team was the absolute winner. But the thing of it is that even the team that did the worst, did an amazing job of appreciation and income from their project so you can’t lose in real estate.
Jason Hartman 23:49
Yeah, what she’s talking about is we had one of our investment counselors. Doug just did a great job. Running the game. He did a different game at profits in paradise when we held it. In Hawaii a year ago, and so he modified that game this time. And what we’re doing is with this gamification, we’re trying to add in more elements of luck, and more elements of you know, you gotta hit, you have chance, and you got to pick the right team. But things happen. And there’s no question that part of success in life is luck. It will just be determined by things that just happened that are beyond our control. But if we have the right team, if we’ve approached things from the right philosophy, and we’ve picked the right markets and the right properties, and hopefully the right people, and Hey, listen, people disappoint us all the time. It’s just part of the part of the nature of life, it’s part of the game will do pretty well. And what she’s saying is that even the team came in last. Okay, well, you know, what we do is on Saturday, Doug gets up, he explains the game gives everybody that handouts to play the game. And then, you know, he reviewed all that everybody went to lunch with their team. And they work together over lunch to decide which properties to buy what to do and all these circumstances and situations. And then they came back after lunch and they have to report. Okay, and Doug tabulated everything in his big, big, huge spreadsheet and determine the winning team, second place, third place, you know, etc. And even the last place team. That’s the amazing thing, the last place team, congratulations. You outperformed the stock market. So good for you.
Unknown 25:39
Yeah, it was really a fun game. Because we divide the whole room up into various teams. And we just sit at lunch, and we say, well, should we buy this property in an A area or should we buy some see properties and pay less for them and get more rent. It’s just really fun. And that’s a great expense.
Jason Hartman 26:00
Yeah, you learn a lot from from playing that world simulator game. So that was great. Good job on that, Doug. Okay, well, hey, we’ve got to wrap it up. And we’re going to leave it to Adam, our producer for producers pick, we’re going to play a little quick segment here before we go. So check out Jason Hartman. com, we will be announcing meet the Masters I believe that will be our next event in the spring in Southern California. So keep keep a lookout for that. It won’t be long before we announced the exact dates. We’re going to have a pretty cool event for you then take a look at the properties at Jason Hartman calm and one more thing I wanted to say. Make sure make sure you do yourself a favor. On the front page of Jason Hartman calm is a video. It’s a free video that you can watch. It’s about 27 minutes long, and it teaches you how to analyze a real estate investment. And that is a fundamentally important video if you’ve already watched it which I know if Thousands of you have watched it again every six months or so or every few months, because you always pick up new distinctions. So here we go with producers pick. It’s up to you for this little segment, and we will talk to you tomorrow.
Unknown 27:14
Real Estate Investing is in Jason’s blood. His mom has been doing it a long time and recently retired with 13 properties free and clear, the properties are worth about $7 million, and the rental income adds up to about $220,000 annually. At this point, she has several options, but let’s pretend like she’s decided to take the equity out and invest it. She could toss it into safe CDs or mutual funds. And even if they returned 5% a year she would earn $350,000 but not so fast. You got to pay taxes on that, which would be a mighty big chunk in that income bracket. What else could she do if she were to ask her son who’s done pretty well for himself with a few innovative strategies? He might say, Mom, haven’t you been paying attention refi till you die. What this means is get that equity out of those 13 properties where it’s wasting away with a chronic case of inflation itis and to use maximum prudent leverage to put it to work increasing her portfolio even more. But I’m retired mom might say, and that sounds suspiciously like work nonsense. She’s still retired, sign her name on a few forms, put property management in place and stay retired, but keep building wealth with an automatic ATM running in the background that we like to call real estate investing the right way. Come on, mom. It’s Jason’s inheritance. Let’s make it a big one.
Jason Hartman 28:36
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