Save on life’s largest expense – taxes! Jason interviews Karla Dennis of Cohesive Tax Services regarding what is quite possibly the largest single tax deduction in American history – The GoZone. The Goza Act, affords investors HUGE real estate tax deductions. Non-cash (you don’t pay for them) tax write-offs of 50% depreciation by purchasing your GoZone property.
Announcer: Welcome to Creating Wealth with Jason Hartman, President of Platinum Properties Investor Network in Newport Beach, California. During this weekly program, Jason is going to tell you some really exciting things that you probably haven’t thought of before, or a new slant on real estate, fresh new approaches to America’s best investment that will enable you to create more wealth and happiness than you ever thought possible.
Jason is a genuine self-made multimillionaire, who not only talks the talk, but walks the walk. He’s been a successful investor for 20 years and currently owns properties in nine states. This program will help you follow in Jason’s footsteps on the road to financial freedom through real estate. You really can do it. And now, here’s your host, Jason Hartman.
Jason Hartman: Welcome to Podcast No. 21. This is Jason Hartman with Platinum Properties Investor Network and we are recording here in Newport Beach, California in the O.C. It’s a beautiful day out and today we’d like to talk to you about a beautiful, beautiful thing. And it’s not just about real estate investing today. Today is about saving money on life’s largest expense and what do you think life’s largest expense is? It is that wonderful subject of taxes. You know they say there’s only two things certain in life and that is death and taxes.
So today, we will talk about saving money on taxes and I want to say something to all listeners. Do not turn this podcast off right now because we’re talking about taxes. This is something you need to listen to. Taxes are the largest expense any of us has. I know that all of you – I do it myself – when I’m shopping for something, I shop around to try and get a good deal. Well, why not shop around on something that you can save some real money in. Instead of getting $2,000.00 off that next car you buy, $5,000.00 off that next house, or $100.00 off that next TV you buy, how about saving lots and lots of money.
Today, we’re going to talk about probably the best gift the IRS has ever given us and that is something known as the GoZone. The GoZone stands for Gulf Opportunity Zone and we have an expert in studio with us, Karla Dennis, who I’ll have talking to you in just a moment, and she will talk to you about when George Bush signed this into law and what it’s all about. And folks, this is probably going to be the biggest money-saving podcast you will hear, so keep listening. It’s important.
But, you know, let’s think about this. How many people do you know personally who became wealthy by investing in real estate? I bet you know lots of those people. I sure do. And how many do you know personally, who became wealthy investing in the stock market? I usually hear a big long silence when I ask those questions at our seminars and that’s because real estate is the most historically proven wealth creator for tens of millions of Americans. In fact, experts will say that about 85 percent of America’s truly wealthy people made that money through real estate. At the Platinum Properties Investor Network, we wanna tell you what we are and what we are not, and make the appropriate disclaimer, especially on this subject of taxes.
We are not tax or legal experts as you know. We are a real estate firm. We advise investors and arrange referrals. Now, Karla Dennis, our special guest today, is a tax expert. However, you should understand that any sort of format like this is a group format and taxes are a complicated issue, and there are many nuances that require individual expert advice. So you can contact Karla directly for that advice or talk to your tax advisor.
The other thing I wanna mention to you, in the many clients we deal with here, is that many tax advisors are not aware of this particular subject, the GoZone. They’re not real estate investors as Karla is. She owns 31 properties in multiple states, so talk with an expert. Now, we will give you a lot of concepts in this podcast that you can take to your tax preparer and ask them about so that you can guide them in the right direction if you wanna talk to your individual tax expert on this subject.
But what we’re talking about today is huge, what we call, non-cash write-offs, tax advantages and tax write-offs that you don’t actually have to pay for, and you can carry them forward and carry them backwards, so if you’ve paid taxes in the last five years to the federal government, this is going to be a very exciting podcast for you. So listen up, listen good, and let me introduce and welcome Karla Dennis.
Karla Dennis: Thank you, Jason.
Jason Hartman: Karla, it’s great to have you here. Tell us a little bit about your background.
Karla Dennis: I’m Karla Dennis. My background includes I’m the owner of Cohesive Tax, which is a tax firm that deals with investors. I’m an investor myself. I’ve been an investor for about nine years. I’m an Inroad agent, which means I have a federal tax license. I’m licensed in all 50 states and I hold a Master’s degree in taxation. My employees are all licensed down to the receptionists on the front desk and we’d be happy to help you.
Jason Hartman: That is a phenomenal thing. One other thing that I’ve noticed, Karla, I’ve always over the years have had CPAs or Certified Public Accountants do my taxes and I just thought that was the normal thing until I met you and a few other enrolled agents. And one of the things I have noticed, and I’m not sure this is everybody’s experience, but it is definitely mine, is that when I talk with enrolled agents, the thing I like about dealing with EA’s, or enrolled agents, such as yourself, is No. 1, you’re licensed in all 50 states.
Karla Dennis: That’s correct.
Jason Hartman: Whereas a CPA is a state license. And No. 2 is that you folks seem to know the tax code better. CPAs do a lot of different things, like audits and things like that, and you don’t do all those things.
Karla Dennis: That’s correct.
Jason Hartman: But you really have a specialization in tax and the tax code is so long and so ridiculously complex nowadays, that I personally like dealing with an enrolled agent for those reasons. Any comments on that?
Karla Dennis: Yes. Enrolled agents have to take a real stringent exam over two days, which is strictly 100 percent tax law or they have to have worked formerly for the Internal Revenue Service. It’s a license that once you get, you definitely wanna keep. We have to do several hours of continuing education to include both federal law and state income tax law. I eat and sleep income taxes. I love it.
Jason Hartman: That’s a rare thing. Not many people love taxes, but I love taxes when I don’t pay them. I really do. And you saved me a whole bunch of money. By the way, I should mention, Karla is my enrolled agent, as well, and she did my taxes last year and saved me a bundle. If you wanna find out more about what she saved me, just go visit www.jasonhartman.com and I have actually posted parts of my personal tax return on my website, right on the front page, as well as a copy of my refund check that I was very glad to get Karla, so thank you for that.
Karla Dennis: You’re welcome.
Jason Hartman: Well, tell us about the GoZone. What is the GoZone?
Karla Dennis: The GoZone is the Gulf Opportunities Zone at Goza, in which the government enacted in August of 2005 as a result of the hurricanes. The hurricanes came through the Gulf Coast, which hit the areas of Florida, Alabama, Louisiana, and in order for the government to do something to revitalize that area, they enacted a tax law. This tax law will allow investors to come in and invest in these areas to keep the area up and running so that there is not a mass exodus of these areas. These are great, great areas and that’s what the Gulf Opportunities Zone Act actually entails.
Jason Hartman: Excellent, so what you’re saying then, Karla is that the government wants people to provide rental housing in these areas and they are offering big, giant incentives, which we’re going to talk about obviously, to get people to be landlords and provide rental housing in these Gulf – or GoZone areas.
Karla Dennis: Absolutely, the government is providing tax incentives to investors to come in and buy a property in those areas to keep those areas going. They want you to buy property and there’s no limit on the amount that you can buy in those areas.
Jason Hartman: That’s excellent and you know, I’ll tell you. These tax benefits are nothing short of phenomenal. I mean if the investor can qualify for them, and that is a big “if” and we’ll talk about that, they are just terrific. I mean go look at my website and you’ll see my personal result. I can go buy the car James Bond drives with that money. That’s an Aston Martin. I’ve always had my eye on one of those. I think I’m going to pull the trigger soon.
Anyway, to sort of “T” this up, if you will, I wanna explain to the listeners what the tax benefit is based on, and what it’s based on is what is known as depreciation. Now, when we invest in real estate, we hope for appreciation, but depreciation is what’s known as a phantom tax deduction or a phantom write-off. Some tax people refer to this in a more politically correct way. They call it “Cost Recovery.”
Karla Dennis: That’s correct.
Jason Hartman: How do you like that?
Karla Dennis: I like that.
Jason Hartman: The PC world is everywhere, even in the tax business, huh? Well, what investors need to understand is when they buy a rental property, they need to sort of bifurcate this property, if you will, into two components. One is the land or the value of the land, and then the second one is the structure or the improvement. In this example, when it’s residential property, but it doesn’t have to be, it’s the house sitting on the land. And what the government thinks and is aware of is that, one day, the house will just fall to the ground. Houses don’t last forever. Land lasts forever, but houses don’t. One day, it will become economically obsolescent and it will be of no further use. You can’t rent a house out if it’s totally in shambles, right.
So they allow investors to write-off the cost of the structure or the improvement or the house over a certain number of years, about 28 years, just to round things off, and sort of recover that cost in advance, if you will, and that generates some really big incentives. So why don’t you comment on that a little.
Karla Dennis: Absolutely, it does. Depreciation normally is written off over 27 ½ years, at 28 to round things off, but this great opportunity in the Gulf Opportunity Zone, you’re able to write off 50 percent of the depreciable base, the improvement portion of the property, immediately in the year of acquisition. So if you purchase a house, for example, at $170,000.00 or $180,000.00, you have acquisition costs of $15,300.00.
Jason Hartman: This is assuming, by the way, in this example, it’s $180,000.00 house that you’re putting 5 percent down and your closing costs – the rule of thumb for closing costs is about 3 ½ percent for loan points, appraisal fee, etc. That would be about $15,300.00, but again, that’s assuming you can qualify with 5 percent down, which is getting tougher.
Karla Dennis: Correct.
Jason Hartman: And that’s another subject of other podcasts. But go ahead, Karla.
Karla Dennis: So to reiterate, you have a purchase value of $180,000.00. Your acquisition cost, like Jason said, your closing costs and down payment, $15,300.00. You have a land value of $30,000.00 and an improvement value, the structure, of $150,000.00; you’re able to depreciate the improvement value at 50 percent. So 50 percent of $150,000.00 gives you an immediate write-off of $75,000.00.
Jason Hartman: Whoa, hold your – this is phenomenal. I mean this is just an incredible thing. A $75,000.00 tax benefit or tax write-off, I should say, with an investment of as little as $15,300.00.
Karla Dennis: Absolutely.
Jason Hartman: That is – I mean it’s like they’re paying me to buy the properties.
Karla Dennis: Absolutely.
Jason Hartman: And at the end of last year, I purchased eight GoZone properties very quickly so I could get in by the end of the year to get these tax benefits and they’re just nothing short of phenomenal.
Karla Dennis: That’s correct.
Jason Hartman: So a $75,000.00 write-off, Karla, assuming the investor qualifies and can really use that write-off, which is a thing we wanna discuss, how much tax savings might that bring them? And I know it depends on their tax bracket and so forth.
Karla Dennis: Absolutely. Typically, the tax savings will be about 38 percent and you’re looking at a tax savings of about $29, 250.00. That’s money you don’t have to pay, folks. That’s a gift in your pocket, tax savings. It’s almost like the government is giving us a gift to purchase this property.
Jason Hartman: So they’re giving us like $2.00 for every $1.00 we invest.
Karla Dennis: Absolutely.
Jason Hartman: Yeah, almost. Not quite, but yeah.
Karla Dennis: Depending on your tax bracket.
Jason Hartman: Yeah, that’s phenomenal. And plus the investment itself, on the face of it, makes economic sense and one of the rules we have here at our company is that the investment must make sense the day you buy it, without tax benefits. As many of our listeners know, in the ‘70s and ‘80s, people were investing in stupid things that made no sense economically, but they were doing it purely for tax reasons. All those windmills and funny investments that just didn’t work from an economic standpoint and these investments should return the investor about 40 percent per year on a projected basis.
Karla Dennis: Absolutely.
Jason Hartman: Before tax benefits. Okay, so go on and tell us more about the GoZone.
Karla Dennis: So the GoZone, the benefit of the 50 percent depreciation is huge upon itself, but in addition to that, let’s say for example, you’re making $100,000.00 a year and you’re able to take a $75,000.00 write-off directly against income. That means you’ve dropped your income to $25,000.00. If you’re able to buy two of those properties and have $150,000.00 write-off, you could potentially generate a loss. That’s correct. An absolute loss on your income tax return; a net operating loss because your income’s $100,000.00, your write-off is $150,000.00. We’ve now generated a $50,000.00 net operating loss, which results in no federal income tax for you.
Jason Hartman: Well, it’s even better than that, isn’t it, Karla?
Karla Dennis: It is.
Jason Hartman: Because that loss that we just generated, and again, this is just a paper loss –
Karla Dennis: Absolutely.
Jason Hartman: It’s not a real loss. That’s what’s so great. These are non-cash tax benefits. When I want a tax deduction in my business, my real estate company, I want a tax deduction outside of it. I have to write a check, spend more money, buy more advertising, hire another employee – their salaries are deductible – buy equipment for my business, or outside, if I donate money to charity. I have a foundation of my own, the Jason Hartman Foundation, so then I can take a tax deduction when I either spend that money or donate that money, but I had to write a check to get the deduction.
Karla Dennis: Correct.
Jason Hartman: Now this is a deduction I didn’t really pay for.
Karla Dennis: Right, it’s a below the line deduction, we like to call it, cost recovery. Not money out of your pocket; money that the government gives you for investing and for you to recover your investment dollars. It’s an excellent opportunity. And with that loss – now, here’s the kicker; I need to make sure you guys are really listening here – you’re able to carry that loss back five years. So if you purchased that property in 2007, you generated a $50,000.00 net operating loss. You can go all the way back to tax year 2002 and recover some of your income tax dollars paid in. That’s correct. You can actually get a refund check back from the government.
Jason Hartman: And you can see a copy of my refund check on my website at www.jasonhartman.com. It’s right there for you. And this is what I’m working on with you in my own portfolio: buying more GoZone properties so I can go back and recapture that tax that I’ve paid over the last five years.
Karla Dennis: Absolutely.
Jason Hartman: Now, there’s a few things I wanna talk to you about. No. 1 is the question of qualifying for these tax benefits because not all people qualify. And I know that in the seminars, we talk about the four doors, the four ways to qualify, and again, I have to caution everybody. This is a complex issue, so talk with Karla directly, call her office, or talk with your tax advisor. But give us the basics just in a nutshell how that works, Karla.
Karla Dennis: The basis of qualifying is first, if your income is below $100,000.00 per year, adjusted gross income, combined husband and wife on a joint return or a single individual, you’re able to take a $25,000.00 write-off no matter what your status is. You can be a doctor, lawyer, Indian chief. The second way to qualify is passive losses go against passive income. Any passive income on your returns from any other things that generate passive income, you can take that loss directly against passive income and wipe all your passive income out.
The other way that you will be able to qualify is to become a real estate professional and there’s various ways in order to do that, and that’s where we need to kind of get on an individual basis to become a real estate professional for you, but in a nutshell, you need to be in a business associated with real estate. You don’t necessarily have to have a real estate license. You need to make sure you put 750 hours into that business and you need to materially participate in your rentals with at least 51 percent service time, and that’s the caveat that I would like to explain on an individual basis because it differs per person based on their earned income.
Jason Hartman: And just to do a little quick math for our listeners, 750 hours a year is about 15 hours per week.
Karla Dennis: That’s correct.
Jason Hartman: So that’s what you need to spend. And if you’re married, one spouse can be the real estate professional.
Karla Dennis: Correct.
Jason Hartman: So this is great for if one spouse isn’t working –
Karla Dennis: Excellent tool.
Jason Hartman: –to meet the qualifier and the other house that’s got the big career where they’re working 60 hours a week or 70 or 80 nowadays, they wouldn’t bother worrying about the real estate. So there’s techniques there that you talk about.
Karla Dennis: Exactly, there’s absolutely techniques to qualify.
Jason Hartman: Excellent, excellent choice. Now, I know that the IRS is getting a little bit tougher on this real estate professional stuff, so please make sure you talk with Karla or your tax advisor on that. There’s a lot of complexity. These things, we’re just giving you the basic idea.
Well, the going back five years, Karla, I mean that just puts a huge smile on my face. Let me tell you, because I sold my other company to Coldwell Banker a couple years ago and that generated a huge capital gain. And my CPA, not knowing any better, just – I said is there anything I can do? I’m used to real estate being the most tax-favored asset in America. When you sell real estate, you can sell it based on what’s called a 1031 Tax Deferred Exchange, a wonderful tool. And in so doing, you can defer the tax and just defer all your life and never pay the gain, and let that equity grow and grow in other investments, which is tremendous.
But I asked my CPA at the time when I did the sale with Coldwell Banker, I said is there anything I can do? And he said no. Just pay the capital gains tax. And I said can I buy another business? Can I do this or that? He said there’s just nothing you can do. You have a capital gain. Pay the tax.
Well, the great thing is, when I later discovered the GoZone, GoZone also can offset capital gains, right?
Karla Dennis: Absolutely. GoZone offsets income, any income on your return. It appears on the front page of your tax return as a loss, so any additional income can be wiped out by a GoZone purchase. So if you’re sitting on highly appreciated property and you’re thinking about selling, if you buy GoZone property, you can wipe out that gain. So you can really use it as an effective planning tool and the good thing about it, Jason, is that the GoZone allows you to not only carry that loss back five years –
Jason Hartman: Oh, I love this.
Karla Dennis: It allows you to carry that loss forward 20 years. So technically, we can opt out of paying taxes for the next 20 years.
Jason Hartman: So this is like a quarter century “get out of federal tax” pass.
Karla Dennis: Correct.
Jason Hartman: And we should mention this does not apply to state tax, only the federal.
Karla Dennis: That’s correct.
Jason Hartman: Which is the higher of the two anyway, but you’ve still gotta pay your state and if you live in a state with no state income tax, you’re really loving life.
Karla Dennis: That’s right.
Jason Hartman: So that’s phenomenal. Now, a lot of people – and I know you’re not gonna be able to answer this question on the podcast, but maybe I just wanna get a quickly, comment on it – a lot of people ask about AMT, or alternative minimum tax, which is such a complicated thing and I don’t begin to understand it. But you wanna make a quick comment on it?
Karla Dennis: Absolutely. Alternative minimum tax is a tax that you pay no matter what the amount of your income is, but luckily, when the government put together this law, they opt out GoZone as not a preference item in alternative minimum tax, so you won’t be paying alternative minimum tax as a result of this big depreciation write-off. So it’s still a good gift all the way around.
Jason Hartman: Excellent. Well, Karla, this is great what you’ve said. We can go back five years and recover the tax we pay to the IRS, the federal tax. Well, in going back five years, how do we actually do that? What are the mechanics of that? I mean the first step is invest in GoZone properties, so call us for that. We will be happy to help you. We have many GoZone areas available that make excellent investments, and by the way, if any of the listeners are concerned about gosh, what if another hurricane occurs or something like that, I wouldn’t be very concerned about it and here’s why. No. 1, you can insure for this. Obviously, you’re going to insure your properties properly and we can refer you to good insurance people and you become educated on the subject of insurance. It’s not very complicated.
No. 2 is that all of these properties are brand new properties, so they’re new and they’re built to the highest new building codes and that, I think, should give people a lot of comfort. Of course, any house can be destroyed in earthquakes, hurricanes, tornadoes, floods, whatever act of God might come along, but the newer houses, I personally think, are built much better because they’re built to the higher standards. I mean I toured some of these properties and one of the things I’ve noticed that they do is they have these cables that come down the walls from the footings in the roof to the footings in the foundation and what they do is, while they’re framing the house, they put the cables in and then when it’s all assembled, they tighten the cable down. So the roof is like, you know, right attached to the foundation virtually.
Karla Dennis: I noticed that, too.
Jason Hartman: Yeah, so the new building codes, really, a lot of these homes that were destroyed, as tragic as these hurricanes were, when we’re talking about major things like Rita and Katrina, a lot of these are really – I hate to say it – but they were due to go anyway. They were really old properties, they were – I mean the areas in Alabama I toured the prior year before Katrina hit – I don’t know what that hurricane was called – but these houses were just stick houses on stilts. They were just old. They need to be rebuilt.
So these are the new properties we’re talking about. But what are the mechanics of going back five years? How do we really do that with our tax returns?
Karla Dennis: The way it works is that you first have to purchase the GoZone property. You have to file the tax return for the year that you purchased the property. So for the properties that you’re going to all purchase in 2007, we’re going to file those tax returns in early 2008. Once we file the return, we will generate the net operating loss and it is at that time that we will go back and assess your prior year taxes to see what the benefits of getting your refunds are.
Jason Hartman: Okay, excellent, so we take the deduction – so we’re sitting here in 2007. Someone listening is going to hopefully take our advice and invest in real estate, first of all, no matter where it is that makes sense, so not in California or Florida or most of these markets right now because stay out of the overvalued markets, obviously. But then the second thing is hopefully they’re investing in GoZone properties. They can qualify for these tax benefits hopefully. If they do, they are going to be filing their 2007 tax return, you know, next year, maybe February, March, maybe April 14 or 15.
Karla Dennis: Hopefully not April 15.
Jason Hartman: Yeah. But they’ll file that tax return in 2008.
Karla Dennis: Correct.
Jason Hartman: And the tax benefits they’re going to get are for the year 2007 first, right?
Karla Dennis: Correct.
Jason Hartman: Now what if they go beyond and generate more of these terrific losses, these paper losses. Then they go back to what year?
Karla Dennis: All the way back to 2002. So what we do is amend your 2002 tax return, 2003 return forward to 2006 to generate as much of a refund as we possibly can. And if we don’t exhaust all that refund money, we will move it forward to tax year 2008 when it’s appropriate to file that return.
Jason Hartman: Excellent. Now there is some time urgency here. When does the GoZone end? When does this big gift from the government end?
Karla Dennis: The gift from the government ends for some of the areas in 2008. The areas that were hit by Hurricane Katrina, which encompasses Alabama, Florida, Louisiana, and Mississippi, those areas are extended to 2010. The areas that were affected by Rita and Wilma, which includes the Texas area, are – the life is ended December 31, 2008.
Jason Hartman: Excellent, excellent advice. Any other tax issues we should know about if we decide to sell the property later?
Karla Dennis: Any time you buy in any type of real estate, from a tax perspective, I always tell my client to think about your exit strategy. On a GoZone property, you wanna look at the fact that you’re going to have to recapture your depreciation, so one of the things that I would highly recommend out of a GoZone property is looking at 1031-ing into some other property, and a 1031 is a tax-deferred exchange. Jason and them have other properties that you can purchase. You can purchase more property in the GoZone, but you wanna make sure that you have a definite tax strategy to exit that’s gonna minimize your income taxes.
Jason Hartman: And the reason for that is is that you’ve taken 50 percent accelerated depreciation benefit, which is wonderful when you take it, but remember if you sell, you’ve gotta pay it back. So the only way to sell is through the 1031 tax-deferred exchange so we can just hide that benefit or carry it to the next property.
Karla Dennis: Correct; continue to defer.
Jason Hartman: Yeah, continue to defer. Good. And we have, here at the office, an entire GoZone strategy laid out. One of the things that we have been noticing is that first of all, on the whole, very few investors know about the GoZone. When you read the media, look at CNBC, I look at all the financial magazines – I’ve subscribed to lots of them – and I look through them and I see just stupid things. I mean it’s really pitiful. Now, oddly enough, they never really recommend real estate in most of these magazines because there aren’t any real estate ads in them. I wonder, there’s ads for big brokerage firms on Wall Street and they’re recommending stocks and things like that. What a coincidence.
Well, anyway, they talk about things like just little things, like buy a hybrid car and get a small $2600.00 write-off. It’s child’s play compared to the types of tax benefits that, No. 1, real estate in general offers, but No. 2, GoZone real estate especially offers. Now, we have noticed that more and more investors, even without the help of the financial press, are finding out about the GoZone all the time. And as they do, they’re causing a little bit of a price run up. It’s nothing incredible yet, but we think it will continue and in the market where we’ve got a national market that’s down and we’ve got certainly down markets in bubble areas, there are a lot of markets around the country that are very hot. Where the builders and the brokers, they don’t even have time for you. It’s like if you wanna buy a house, chase them.
Karla Dennis: That’s funny.
Jason Hartman: It’s the way it was in California here two, three, four years ago, when it was a really hot market. And so there is a strategy that goes along with this. We think that the GoZone may create a little bit of a bubble if you will and it might be time to exit the GoZone at a certain point based on 1031 tax deferred exchanges, but the first step is to buy in there. Talk with one of our investment counselors at Platinum Properties Investor Network and they will be happy to tell you about the GoZone investment strategy and the timeline. Unfortunately, it does require some visual aids. They can email with you, they can fax you, they can meet with you in person. It’s just not really possible to convey that on audio here, but we do have a definite strategy for it.
Karla, anything else you’d like our listeners to know?
Karla Dennis: Absolutely. Any time you’re investing in any type of a property, you just wanna be tax smart. Always review your tax return. Understand the way it flows on your tax return and just make tax smart decisions.
Jason Hartman: Absolutely great advice for the most tax-favored asset in America and taxes being everybody’s largest expense. So thank you very much for listening today. Give us a call if you have questions about the GoZone, or give Karla a call. Karla, what is your office phone number?
Karla Dennis: You can call our office at 1-800-878-4051, and that’s Karla Dennis at Cohesive Tax.
Jason Hartman: Excellent. Thank you so much for imparting this wisdom to us and our listeners today Karla, and to all of our listeners, happy investing. We look forward to talking to you next time.
I’m here with Area Manager and Investment Counselor Lynda Mulley, and she just returned from Kansas City and also Grand Junction, Colorado, and Lynda, tell us about what you saw in Kansas City.
Lynda Mulley: Kansas City is a great market, Jason. It’s very stable and solid. It’s a market where there’s good growth and lots of things going on, and there’s some great projects there that I took a look at that I think the investors would love to hear about.
Jason Hartman: Now one of the things we always do is you’ve gotta go buy your own house there if you wanna recommend the area to clients and of course, I’m already an owner in Kansas City. I bought a 4-plex there, but tell us what you’re recommending today in Kansas City.
Lynda Mulley: What we have is a great single-family home, three-bedroom, two-bath, about 1450 square feet, for $189,900.00.
Jason Hartman: Brand, spanking new, right?
Lynda Mulley: Brand new, rent ready, close to schools and a beautiful shopping center, big upscale shopping center called Zona Rosa, which I had lunch at and just fell in love with.
Jason Hartman: Excellent. What’s the projected return on investment?
Lynda Mulley: Projected investment return here is 34 percent based on our usual assumptions that we put on our performance projections in the loan that you could get.
Jason Hartman: Excellent. Boy, 34 percent annually. Don’t try that in a mutual fund or the stock market. You probably won’t get it. But you can do it pretty conservatively and prudently with the right real estate investments with the right structure. Lynda thanks so much for talking about the property in Kansas City.
Lynda Mulley: You bet. Thanks so much.
Jason Hartman: Hey, I just wanted to announce a couple of quick things for you. If you are interested in the Platinum Properties Investor Network franchise in your area, we are now approved for franchising in eighteen states. Please visit www.jasonhartman.com and click on the franchise link, and fill out the short application.
If you are able to come to one of our live events, we would love to see you and meet you in person. We’ve had people fly in from all over the U.S. for them. So hopefully you can join us for some of those events.
Also, if you are interested in career opportunities with us, our company is growing quickly and we would love to talk with you about career opportunities.
Also, remember our rental coordinator is here to help with your rental properties. If you need assistance with your rentals, your property managers, your advertising, remember we’re here to help and we stay with you through the life of the investment. So feel free to call our office anytime and ask for the rental coordinator for assistance on your rentals.
Also wanna remind you, listen to our old podcasts. At least go back to podcast No. 13 forward and listen to all the podcasts after that. You’re welcome to listen to all of them. The ones before No. 13 are older, but they’re also good, but the newer ones are No. 13 and forward, which are really good ones to listen to, so please take advantage of that.
Be sure to see appropriate disclaimers and disclosures on our website at www.jasonhartman.com. Remember that we are not tax or legal advisors. So give us a call on any of these issues, and remember, we are here to help, and we will look forward to talking to you on the next podcast.
This material is the copyrighted creative work of either Jason Hartman, the Hartman Media Company, Platinum Properties Investor Network, Incorporated or the J. Hartman Company, all rights reserved.
[End of Audio]
Duration: 37 minutes
