Jason Hartman starts this episode with a discussion of incredible financing for foreign investors looking to buy American real estate, self-directed IRA investors and those who have exceeded the 10 property/10 mortgage Fannie Mae/Freddie Mac loan limits or have lower FICO scores. Here are some notes on the program with details explained in the show audio: 30% down, 70% LTV, fully amortized over 15 or 20 years with adjustable rates starting at only 5.5% or 5.75% and 2% adjustment caps every three or five years at one point or $1,000 loan fee. The index is Wall Street Journal (WSJ) prime rate + a 1% margin. Only available in Dallas Fort Worth market area. All information, rates and terms are subject to change without notice, contact us at http://www.jasonhartman.com/contact/ and we’ll connect you with the FDIC insured member bank, equal housing opportunity.

We’re putting enough real estate and business brainpower in one room to make Donald Trump flinch. Enjoy this content-rich sampler of “Meet The Masters” our twice annual powerhouse educational event that can revolutionize how you think about money and wealth. Listen at: http://www.jasonhartman.com. Will you be any closer to financial freedom in one year? Listen in and it can make all the difference if you simply have the courage to take action on your dream. The reality is you can fire your boss and live life on your own terms sooner than you think. Wall Street Investing Does NOT Lead to Financial Freedom.

The following information might surprise you:

Income producing properties are history’s most proven wealth creator.

Making money in real estate is NOT just for big spenders. There are investments out there which require very little cash up front, yet have the potential for exciting returns.
It’s a fact. The vast majority of wealthy people made their fortune investing in income property. Why do anything else?
Learn every skill you’ll need for success: analysis, acquisition, management and wealth preservation techniques.

Our speakers come armed with the latest in shrewd real estate investing techniques, and will address such issues as:

The smart way to choose your properties
How to grab every tax benefit the law allows
How to put together the most creative financing package possible
The hidden power of the 1031 Exchange
How to easily invest in dynamic growth markets outside of California

Introduction: Welcome to creating wealth with Jason Hartman. During this program, Jason is going to tell you some really exciting things that you probably haven’t thought of before and a new slant on investing. 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 has been a successful investor for 20 years and currently owns properties in 11 States and 17 cities. This program will help you follow in Jason’s footsteps on the road to financial freedom. You really can do it and now here is your host Jason Hartman with the complete solutions for real-estate investors.

Jason: Welcome to the Creating Wealth Show, this is Jason Hartman, your host and this is Episode #241. So today we are going to do this show in like three parts. The first part will be my little discussion here with you about couple of quick announcements and then we will have Bob on the show and we are going to talk about some incredible financing. If you are a foreign national, If you are an IRA buyer who is buying within a self-directed IRA or if you are above the 10 property Fannie Mae loan limit, you are going to absolutely love this or if you just want to purchase in the Dallas Metro area, if you are looking Dallas Fort Worth as your market, you are going to love what is coming in part two of the show. And then there will be a third part where we have some clips from Meet the Masters and you have got to join us for a Meet the Masters event. We are lining up some new and different stuff this time where are going to have not all of the stuff is confirmed and so I don’t even want to say it. But anyway, we are working on some new different stuff for this Masters, this Meet the Masters event at the Hyatt Regency in Irvine. And a lot of you have been signing up, we’ve got the big conference set room, with the big leather chairs and stadium seating and that’s going to be a just a phenomenal Meet the Masters event. So sign up for that at jasonhartman.com and we will see you there. And we keep this info rather short because we’ve got three parts to the show today. First of all, you know, I’ve talked to you before about St. Robert, Missouri, that is the special, unique and don’t hear about it anywhere else, because it’s kind of one of these sort of undercover markets that we have done very well in, but Forbes Magazine actually noticed St. Robert and they did a survey of the fastest growing small towns in America and guess what number three was? It was Fort Leonard Wood, Missouri, which is the Greater St. Robert Market and listen to this. The 2010 population was 52,274 versus the 2007 population 44,326, that is a growth rate in three short years folks of 17.9%, huh, don’t fall off your chair. 17.9% in three years. That is a phenomenal rate of growth and I hate to say it or actually I love to say it. We told you so right here on the Creating Wealth show, we have been profiling phenomenal little town Fort Leonard Wood, St. Robert, Missouri unbelievable opportunities. We have a great vendor there. I own property there, 10 unit apartment building with some clients of ours, if you got anything you want to invest in there and you want a partner, I am sure that I would be interested in investing with you. So bring it to me if you are interested or do it on your own, get in touch with your investment counselor, go to jasonhartman.com and do not forget about this, this under the radar, this below radar market. We’ve had some phenomenal experiences there and I am sure they will continue to be so. Take advantage of that and contact your investment counselor at my company through the jasonhartman.com website or just go to the website direct and we will be happy to help you with the third fastest growing small town in America according to Forbes – forbes.com, Forbes Magazine. Gosh, you know what? I’ve got a whole bunch of stuff I want to cover with you, but I am going to leave that for another show. I want to talk about this really interesting article that talks about taxation and revenue and how taxation and taxes are obsolete in an environment where you have a Federal Reserve Bank and a Treasury like we do, we will get to that on a future show. I want to talk about what’s the title of this article? I wanted to talk about here, oh, Inside the Fed in 2006: Banter about A Coming Crisis, one of our clients Steven sent that to me, really interesting, Kyle sent me this great article I want to talk to you about, a new world of cities redefining the real estate investment map and five global investment drivers, really some interesting stuff there but you know what? For once in my life I met – we don’t have the time, [Laughter] so let’s get into the next two segments of today’s show. Let’s talk about this very unique financing for foreign nationals, self-directed IRA investors and people with more than 10 properties and people with maybe some slight issues in terms of credit. Again this is not for a, a really bad credit type of loan, they do credit score this loan but again, there is some flexibilities at least and we are not talking about strict under writing guidelines here. So, let’s go to that, let’s talk about Meet the Masters and be sure to register at jasonhartman.com and click on the events sections, join us at the end of March for Meet the Masters Hyatt Regency, Irvine, you are going to love this, the room block is – it actually did sell out but I just emailed the hotel, the Hyatt Regency there and they opened up few more rooms in the block and again they got that special $99 rates, so pretty phenomenal. So anyway, let’s get right into it, here we will be back in less than 60 seconds here and we will talk about the special financing and then we will play some clips from our prior Meet the Masters event that I think you will enjoy and whole bunch of shows coming up, phenomenal shows coming up, we have already got the next six shows planned out creating wealth #242, 243, 244, 245, 246 and 247. We have some phenomenal guest that range from Helen Brown, well, just a whole bunch of things in the plate. So, keep on listening and here we go, let’s get into the show.

Male: You know, Fennie, sometimes I think of Jason Hartman as a walking encyclopedia on the subject of creating wealth.

Fennie: Well, you are probably not far out from the toothbrush, Jason actually has a 6 book set on creating wealth, that comes with over 100 hours of the most comprehensive ideas on investing in business. They are in high quality digital download audio format, ready for your car, iPod or wherever you want to learn.

Male: Yes and by the way he has recently added another book to the series that shows you investing the way it should be. This is a world where anything less than a 26% annual return is disappointing.

Fennie: Jason actually shows us how we can be excited about the scary times and exploit the incredible opportunities this present economy has afforded us.

Male: We can pick local markets that are untouched by the economic downturn. Exploit package commodities investing and achieve exceptional returns safely and securely.

Fennie: I like how he teaches, how to protect the equity in your home before it disappears and how to outsource your debt obligations to the government.

Male: He has recorded the interviews with Harry Dent, Peter Schiff, Robert Kiyosaki, Pat Buchanan, Catherine Austin Fitts, Doctor Dennis Whitley, T. Harv Eker and so many others who are experts on the economy on real estate and on creating wealth.

Fennie: And the entire set of advance strategies for wealth creation is being offered with a savings of $385.

Male: Now to get your creating wealth encyclopedia series complete with over 100 hours of audio and 6 books go to jasonhartman.com/store.

Fennie: If you want to be able to sit back and collect checks every month just like a banker, Jason’s Creating Wealth Encyclopedia series is for you.

Jason: Hey, it is my pleasure to welcome Bob to the show, you are really going want to hear what he has to say because this is pretty special. He came to us through our Dallas-Fort Worth Market and his bank is offering some pretty phenomenal financing for investors. Now this is something that is really, really appealing for anybody who has more than 10 loans, you know, how you got this Fannie Mae loan limit where you can’t get as many investment properties as you may want to purchase or for foreign nationals, you don’t have established credit in the United States, this is a great opportunity for people who are investing with their self-directed IRA as EMI, this is a great opportunity as well. This is some of the best financing I have seen in years. Okay, so you really going want to perk up in here what Bob has to say because this is nothing short a phenomenal this opportunity and I will give you the highlights and then I am going to talk about it and we are going to get some questions answered and go back and forth, but basically you can buy properties for only and again you can have more than 10 loans, you can have a self-directed IRA, you could be a foreign national and you can get in with only 30% down which is unheard of for any of those 3 categories foreign nationals, IRA buyers or people with over 10 loans they can’t get any more loans at all and they can be amortized over 15 to 20 years and the starting rate is very low. It is adjustable and the latter parts of the loan, these adjustments are very conservative. So, setting you up is above for success and I just think you really like what he has to say, this is an FDIC member bank in the Dallas-Fort Worth Metroplex equal housing lender and you can even do this, get this on a cash out refinance. So, if you have purchased properties through our network in the Dallas-Fort Worth Metroplex, wow, you can do cash out and buy more properties. So, you can turn one property that you might own free and clear with all cash into three properties and still have some change left over. Bob welcome, how are you?

Bob: I am very well, thank you.

Jason: Good, good. Well, this program you are offering is nothing short of phenomenal. I haven’t seen anything this good in years. When you do financing inside an IRA, if there is even a lender you can find that will do the loan, the financing stinks and you know, for the people with more than 10 loans, they can’t get anymore because of the Fannie Mae main loan limits or foreign buyers who are dying to buy up American real estate that is on sale right now. I mean, wow and it is in a good market too, I mean, Dallas is such an attractive market for investors, we have been doing business there for years now and our clients love it, they are having great experiences. Tell us more about this program.

Bob: Well, Jason, this is just something we kind of fell into frankly we didn’t know what we were getting into, but it just been very well received and we are very pleased about that, it summed it up pretty well, basically we are providing 70% financing for either purchase or cash out reify in adjustable rates of 3315 or 3320 or 5520, I am sorry.

Jason: Let me stop you for a minute, let’s explain what that mean so, so basically what happens here and listeners know that I am not a huge fan of adjustable rate loans but this is basically commercial financing for investors, this is not the normal residential financing and on any commercial loan, you are going to have adjustments, you just can’t do the 30 year fixed type of thing that I love so much. But even with the adjustments because they are really nice that I am going to kind of explain a little bit how adjustable rate loans work and then let you explain the way your loan works specifically Bob. On an adjustable rate loan there are few different criteria you want to know about, you want to know about the start rate, so what is the initial interest rate on this loan, it is only five and half percent, phenomenal. Then the second thing you want to know is about the adjustment caps. In other words, every time the loan adjust what is the maximum amount that adjustment can be because on adjustable rate loans we got lot of people into trouble with them, is they took this very low artificial teaser rates on the loans and then they got what we call payment shock. And payment shock happens when you have a huge swing and the investor or the home owner mostly it is in the home owner case in the past year in the financial crisis, they just weren’t expecting it and they were living on borrowed time but when adjustment happen reality some can and then they got themselves into trouble. So start rate, adjustment cap, you want to know about the lifetime cap. In other words, during the whole life of a loan if you go for 15 years or 20 years, what is the maximum that rate could ever be, what is the highest that could ever be. And then you want to know about the margin and the margin is tied to an index, so actually that’s one more thing you want to know about the index, okay. So, there are various economic indicators used by lenders as indexes, they might be the prime rate, they might be the 11th District cost of funds or the Libor and forgive me Bob, you are going to have to tell what that acronym means but it is likely London Interbank – I can’t even remember because I heard the adjustable too much. But there are many indexes and the final rate that you as the borrower pay is a combination of the index plus the margin. So, those are really the five things that you want to know about with an adjustable rate loan. And just to review before Bob explains his loan, start rate, payment caps or adjustment caps I should say, adjustment caps, index margin and lifetime cap, five things and maybe there is just one more I will throw in that is in particular to adjustable that applies to any loan. So really only five relating to adjustable and that is the points or the fees to get the loan. So, take it from there Bob, tell us what you meant there by those numbers you were given up 335 or 3315, 3320, go ahead.

Bob: Sure, great, thanks. Let me start maybe Jason by saying for loans less than $100,000 were confirmed to an amortization not to exceed 15 years, greater than $100,000 we would offer 20 year term. So, the beginning would be in a 3315, let’s say for a loan less than $100,000 our initial rate would be 5.5 percent. That rate would be fixed for 3 years and then adjust to Wall Street Journal prime plus 1%. The cap of the adjustment is 2%. So, in the real world the 3315, 53 adjusting each 3. There would only be a total of 4 adjustments throughout the 15 year term, three times, well it is fixed with the first 3 and then the remaining 12 years. So, 2% at each adjustment your real exposure is 13 and half percent.

Jason: Yeah. So, let me just stop you on that one, okay. So, what that is, that’s what is called the worst case scenario, so in other words, if a loan adjust, say that index goes way up and by the way your index is the Wall Street Journal prime rate and then the margin is 1%. So, index plus margin determines, what I call the true rate on the loan but then the true rate is subject to the adjustment caps. So, say for example the Wall Street Journal prime rate goes to say it goes crazy which is not the environment we live in nowadays. We are not under the Jimmy Carter regime. But say for example that went to 10% rate, just as a crazy example and then the margin was 1%, that would mean that your real rate is 11% but it can only adjust as much as those adjustment caps allow, so if you start off at 5.5 and what is it, three years later, you have the first adjustment?

Bob: That’s correct.

Jason: Okay, So that would mean in 2015, sometime in 2015 you would have your first adjustment and the prime rate is 10%, the margin is 1%, it dictates a 11% being the true rate but the rate you pay is only seven and half percent, right?

Bob: That’s exactly right. Yeah, there is a floor rate that it would never go below the initial rate of five and half.

Jason: Yeah, so see, we talked about lifetime caps and we talked about adjustment caps, but we should also talk about the floor rate. So, the interest rates go down, it won’t go below five and half ever, which is for this kind of loan for foreign nationals, self-directed IRA buyers and people with over 10 loans, five and half percent is nothing short, a phenomenal, I mean that is a phenomenal deal because these people they can’t even find financing in most markets for either of those 3 categories. One question for you though and this is an interesting just inside like a study to understand what is going on here in terms that payment floor. What is the Wall Street Journal prime rate today?

Bob: 3.25%.

Jason: So, everybody listening, take 3.25% and add one percent margin and what do you get, you get 4.25% and that would say that’s your rate, index plus margin but the floor rate is 5.5. So, you don’t get to go below 5.5, okay, still a great deal, tell us more.

Bob: Alright. We would offer, you know, somebody was solo, still squeamish about the arm or the adjustable rate mortgage, we offer fewer adjustments in rather than 3/3/15, we could do this as 5/5/15. So, fixed for 5 years, adjusting each 5 years in that same 15 year term that we are analyzing here.

Jason: Yeah, so you are only going to have 3 adjustments throughout the entire life of a loan every 5 years, wow.

Bob: Right, the price of that option however is a little bit greater rate, rather than 5.5% our initial rate and our floor rate is 5.75. So, we had 25 bases points for that interest rate exposure shield if you will.

Jason: Okay. And just so you know, so 25 bases points equals a quarter of a percent the Wall Street people in the sophisticated type talk is bases points, which is just 100 basis points and in one percent. So, 25 bases points quarter percent, so instead of 5.5 as your start rate, you pay 5.75 as your start rate and probably viable, so that is your floor rate, that were too, right.

Bob: Yes, it is.

Jason: Okay, good. Still a great deal. So, I guess the bank really views the longer adjustment term as being a little bit more risky for the bank because and they charge a slight, ever so slight and small premium of the quarter percent for that.

Bob: That’s correct and for what is worth, I have been looking at several loans in rather around a $100,000 volume, frankly the price is or let’s say the monthly installment to pay for these things. The difference in the 3/3/15 and the 5/5/15 is only about $20 a month. So, you know, from monthly cash flow it doesn’t have a tremendous impact, over the term of the loan, yes, arguably it will cost you more.

Jason: So, 20 bucks a month, that’s about the price of lunch, so not bad at all and lot less in your monthly internet service fee for sure. So-

Bob: Right.

Jason: You drop a movie channel on your cable TV and your paper now that, so, you know, are you guys selling these off or these are just got to be portfolio loans, you are just scaring about that, right?

Bob: Yeah, that’s correct, we make these loans here, we service these loans here. We are community bank and that’s our intent is to provide a very high level of service at a reasonable cost and so that’s what we do.

Jason: Incredible and I mean, you can even do it on a cash out reify, Gosh, when you said that, I got so excited because I know Bob there is a bunch of people listening who would love to turn one property into three properties, which is exactly what they can do with that cash out reify, so tell us more now, you got the, I just want to make sure everybody understand, you got the 3/3/15 and the 5/5/15 and the 3/3, just relates to the adjustment periods and the 5/5 just relates to the adjustment periods, you want to tell us more about that before progressing to the 20 year amortization schedule?

Bob: Well, you touched on origination fees and so forth, we do have a origination fee of 1% of the loan amount or $1000 whichever is greater, let’s face it, we got to pay from account.

Jason: Yeah, so in other words what that means, lot of these properties are so low prices, you know, if you buy a $60,000 property, you are still going to pay or say to 60, sorry, $60,000 loan amount, you are still going to pay a $1000 minimum origination fee. But on the other hand, if you buy or if you have a $120,000 loan amount then you are going to 1% of the loan amount, which by the way actually brings me to question, I am sorry to get off from track here, but what about duplexes, triplexes, four plexus, even small apartment buildings or anything like that where the price might be higher?

Bob: Sure, I would want to reserve, let’s say a hard finance commitments until we could see about the properties and the borrower and so forth. But we certainly would be available for multifamily, be it duplex or triplex or the smaller apartment complex and so forth. Sure we can do that.

Jason: I just want to comment that, I love talking to a guy like you because the difference folks here, is you are talking to a community bank, a real person, who actually is making a thinking decision, okay. And they are doing it in a way that is prudent and smart because they are lending their own money and they are not going to sell this loan off. This is how it was in the old days, this is how banking should be, instead of selling it off and some pool of securitize dead on Wall Street the biggest organized crime syndicate on the planet probably is Wall Street just my humble opinion. But this is the way banking should be done, this is the way it was done in the movie, it is a wonderful life with Jimmy Stewart and this is the way it was done in the savings and loan era before things got all, you know, you know, how they got, they got all “sophisticated” which means there was lots more room to rip everybody off. But go ahead.

Bob: Alright. I would want to, I guess, just almost a front exclude one side of a duplex, I mean, let’s go ahead and buy the whole thing if we are going to get into that.

Jason: Well, I agree with you because you don’t want to do condos, you don’t want to do like attached product really. You want to do where the person is fully in control of that property, right?

Bob: Yeah, absolutely, just for the borrower’s safety and frankly for ours too.

Jason: I agree.

Bob: Let me see, so we wanted to touch, yeah again on the a loan amount greater than $100,000 would have the option for a 20 year term and certainly not a requirement. The self-directed IRA borrower for obvious reasons of building equity faster may want a 15 year term or even a 10 year term. If you want, 8 years and 4 months, I will do it. It just whatever make the cash flow work, we want to know, that there is a positive cash flow coming out of the thing. They never want to look to the borrower to have to subsidize any of the principal interest payments for these things. Beyond that it is probably important to also note our bank does not and will not escrow taxes insurance, commercial loans.

Jason: Yeah. They do them also-

Bob: Yeah, you are a big boy, you need to handle that. So, as the investor that will be your responsibility.

Jason: You know, that’s no problem, I mean, lot of people don’t link impounds or escrow accounts anyway. So, no problem there. So, maximum term and amortization and by the way just a definition here, amortization if that the root of that is the Latin word Amort which means to kill, to kill the loan, so when Bob says the loan is fully amortized, that means you pay principal and interest every single month and at the end of that term, that loan is completely paid off as opposed to, you don’t want these private loans and special circumstances type situations, you have a balloon – a balloon payment at the end of the loan, these are fully amortized, paid off in 15 or 20 years, as it were.

Bob: That’s correct.

Jason: What else does someone need to know about this?

Bob: Well, application process is fairly simple. We have a personal financial statement form that access something of a commercial loan application if you will, we prefer that, well, I shouldn’t say prefer, most of our borrowers coming into this program have some corporate entity, as a borrower and then we certainly require a personal guarantee behind that, that corporate entity. The self-directed IRA by definition would be different, those are specifically non-recourse loans and so that’s okay. But our personal financial statement form or if you have one that’s created that is current, we would look at it, we will need a signature to accomplish a legal status of an application, normal financials two years of personal tax returns, if the corporate entity is previously existing we would want tax returns from the corporate entity as well. Our foreign investors are little different in that. We still want financial statement, we still want Australian tax return or whatever it happened to be from just to see sort of what’s going on but we would add up driver’s license and a copy of a passport for additional identification.

Jason: Okay and how long does the process take to close one of these loans?

Bob: Well, in days, I cannot be summed out in 2 or 3 weeks. Now as volume increases we are anticipating great likelihood of ramping of some staffing if necessary. So, the program is so new again, we – we’ve just got our feet in the water, we will just have to wait and see sort of how that goes. At the moment 2 or 3 weeks, we are closing these things without much difficulty. No, that’s from the time that I have everything I need. Let’s clarify that.

Jason: Right, right but that’s still faster than most lenders, you know-

Bob: Yeah. So many times, yeah, we need documentation and a trickle in-

Jason: Yeah, but Bob that’s still faster than most lenders are going to do it. So, I think everybody listening is glad to hear what you just said. What else should people know about this, I mean, this is just, it is a great program, I tell you folks jump on this thing. One thing I want people to keep in mind with the adjustable rate aspect because again all my listeners know that I am a huge fan of the longest fixed rate mortgage you can possibly get because I think my view of the future there is going to be a lot of inflation, I think we are looking into an inflationary future. So, just keep in mind here, the real rate of inflation in my opinion today, is about nine and a half, ten percent, real inflation, of course, the official stat is much lower than that, it is about 3% I guess, something like that. But all you got to do, say you have the worst case scenario and so let’s do this on the five year adjustments, so we are going to start it 5.75 % today and then in five years and that is in 2017 in the worst case scenario, that loan is going to go to 7.75%, right Bob?

Bob: That’s right.

Jason: And then in 2022, that loan is going to go to 9.75%, right?

Bob: Well it could.

Jason: Well, in the worst case scenario, I am talking worst case scenario here.

Bob: In worst case scenario, that is correct.

Jason: And then say it’s 15 year loan of a last adjustment that will ever happen, well, no way, you paid it off, you only have 2 adjustments really, on a 15 year.

Bob: That’s right, right. You are into now.

Jason: Yeah, so when you pay that loan off in 2027, folks do you realize how much the world is going to change and how worthless the dollar will probably become by 2027, your rate is only going to be 9.75% worst case scenario. I bet any viewers, you are going to get paid to borrow this money, after inflation. Wow, and you don’t even pay your own debts anyway, your tenants do, you outsource them.

Bob: That’s true, very, very true, from the cash flow throwing off these things.

Jason: Well, if you believe in that future folks, that means Bob here has giving you, given you money, given away money for lower than the true inflation rate. So, thank you, that’s a really nice gift Bob.

Bob: Sure-

Jason: I am being kind of sarcastic with you here, okay.

Bob: So, let’s talk about markets that are available for just a minute. We are confined to in loose fix in terms to our part of the world which would mean Dallas and Fort Worth in and around Central Texas and perhaps as far as south is about Austin Texas. Those are our principal markets of our bank. And so we want to – we do want to keep this thing local within reasonable geography of where we work and live and operate.

Jason: Yeah, but for practical purposes for anything anybody listening Dallas-Fort Worth market area because that’s where we have the good properties.

Bob: Yeah, I mean I would love to be and I don’t know, Atlanta or I don’t know what the top markets are-

Jason: Yeah, listen, we would love to have you in Atlanta, Phoenix, Indianapolis, St. Louis and all kinds of other markets we do business into but you are not so-

Bob: That’s right.

Jason: It’s fine, we will just do this here. The one thing we didn’t talk about and maybe we will just close with is the issue of credit score and nowadays tens of millions of Americans whether by, by accident or by choice have lower credit scores and when I say by choice I mean some people have chosen to do strategic defaults on things and so forth and, you know, their credits are little beat up, now this is not a loan for people with bad credit per se, but there is a little more flexibility because you actually have a thinking person looking at this loan package and what do you want to say about FICO score expectations, Bob?

Bob: Yeah, good Jason, you know, we would like to see a 700 score. However, that said depending on the circumstances of what happened in reasoning why and so forth, we will consider lower scores, I hesitate to say a minimum score, I don’t want to get into that but your point, literally speaking I am under writing these loans at my desk. We use the credit report and we use the credit score as an additional tool but we are not a credit scoring bank, meaning, you know, I think Fannie Mae these days, it is minimum 620 no matter what, you know, again the credit score is just one more tool in the bag to evaluate with only have a, you know, reasonable credit request or not.

Jason: And I just love how these loans are underwritten by an actual thinking person who is not following some crazy financial model, the rest of the banks follow. You are just going to really look at the package and give it some thought and that’s a great thing. Well, good stuff Bob, anything else you want people to know before we go?

Bob: Yeah, just let’s touch right back on that. If there are credit issues, if there is a derogatory information out there, with your application package save us all some time and effort and go ahead and provide a minimal of explanation. Here is what happened in – when grandma died and we have to pay for the funeral or whatever the details are, go ahead and play all your cards, let’s not play any games, just the one that hide behind details, tell truth, all truth, nothing but the truth and then we will deal with what we’ve got.

Jason: Good stuff, makes a lot of sense. Well, hey, contact us through the website jasonhartman.com, just fill out the contact us request and talk to your investment counselor at my company if you have one and they will put you in touch with our Dallas local market specialist too, we can get you all the details. If you use the website, just tell us what it was about that you are interested in the financing I talk with Bob about on the show in the Dallas-Fort Worth Metro area and we will get you right in touch and take advantages of these phenomenal loans, it’s really an incredibly opportunity. Thanks so much for joining us today Bob, appreciated.

Bob: Thanks Jason, appreciate talking to you.

Male: What’s great about the shows you find on jasonhartman.com is that if you want to learn how to finance your next big real estate deal, there is a show for that. If you want to learn more about the food storage and the best way to keep those onions from smelling up everything else, there is a show for that. If you honestly want to know more about business ethics, there is a show for that and if you just want to get away from that all and need to know something about world travel, there is even a show for that, yeah, there is a show for just about anything. Only from jasonhartman.com or type in jasonhartman in the iTune store.

Jason: This is Jason Hartman and I want to welcome you to The Masters Weekend: A Gathering of Experts. This is one of the most successful events that we do and it is a rare event, we only do it twice a year, where we gather experts from all fields of expertise, from all different locations around the country and I just wanted to share some snippets from a few of them, here on this sort of Masters Weekend sampler and by the way, this is not a big promotion, this is contents. So, you are going to hear some pretty good content here too. Have you ever really wanted to know the inside scoop on analyzing investments, whether you should make that go or no go decisions when looking at property. We will talk about the power of analysis. Have you ever really wanted to know how your credit score works and of course it’s important, but what parts that are most important than others. There is a lot misinformation about this and we at the Masters Weekend discuss a lot about credit restoration and credit enhancement. Have you ever really been curious about tax strategies of high level CPAs and investors use, have you ever wanted to get a CPA who charges $385 an hour in the room to answer all of your question pertaining to just real estate and home business opportunities? Have you ever been interested in 1031 exchanges, you may have heard that word but not really understand in dept what it is or how it works? Do you know that you can exchange not only really estate but all sorts of other things on the 1031 tax-deferred exchange laws ? Do you know that you can go ahead and defer, defer, defer and basically never pay tax until it is in your state and then have that tax or that tax liability, step up to market value, so the government never gets paid? Pretty cool deal. Have you ever been interested in asset protection, have you ever been sued, have you ever been concerned about the government coming after you about some kind of fine or attacking your assets? That happens to a lot more people than you think folks, I have read a lot of stories about that. Have you ever been concerned about legal liability? People get sued and they are not prepared, it is very important, you set things up in advance and protect yourself with proper legal structures. Have you ever thought about investing in mobile home parks, our self storage facilities? These are some of the best ROI opportunities in the real estate world along with multi family and single family but they include some very special things that you have to be aware of. Have you ever been interested investing in real estate with your IRA or 401(k)? Well, there are some great opportunities there especially with the new law changes in 2010. Have you ever been interested in really getting your properties organized so that your real estate portfolio is managed efficiently like it is a whole little business onto itself? Well, we will talk about that at the Masters Weekend. How about talking to local markets specialist? Have you wanted to get all these people that we talk about on the show in one room, in one place, so you can talk to property managers, local market specialist, all kinds of different experts that fly out from all around the country to help you with all of these various disciplines when it comes to investing. How about organizing your real estate business? Well, I do a whole session on organizational tips. How about a client panel with real world stories? We call this tales from the edge. They are not all good, they are not all positive but they are all real, and you will hear from real people, about the challenges they face and how they overcame them. How about the best practices in the mortgage side of a business? Have you ever wanted to make sure that you can qualify for more loans that you can structure mortgages properly, that you use mortgages as an asset rather than as a liability when investing? There is a lot to this. How about the last part, fighting the three major demons of investing and the three major demons of your financial life? Well, we got it all at The Masters Weekend: A Gathering of Experts. Let’s listen in to a little sampler here as to what it is all about, you will hear from many other different Speakers, here we go.

Speaker: If people are experiencing hardship, the sort of first level of understanding and I’ve had people ask this question, look, if everybody is broke how will they rent my house? Well, it is just a matter of where they are on the economic ladder. So, if you were to talk with your tenants, I only have one property, the local property in Irvine that I manage myself, but all of my other properties I have managers all around the country and I own properties in 11 states, in 17 cities. And so I don’t talk with my tenants but if I did and if I were to in the next few years, I better with there something like this. A tenant would say something like, I use to live in such a nice big house, I used to have a 3500 square feet house and now I am renting from you a 1600 square feet house. The point is, there is always a renter, it is just what was their former life. They are moving down, their lifestyle is being diminished. And I think for tens of millions, if not hundreds of millions of people probably, their lifestyle will be diminished. One of the things we got practice to make sure that doesn’t happen to us, is financial self defense. Financial self defense from government, from central banks and from Wall Street because those are the three biggest threats to our financial security in my opinion, the power of analysis.

Speaker: And the investment is when we as tax payers or individuals decide to take our extra sponge and put it into some type of a vehicle that hopefully is going to give us a return. Now, a lot of us have been looking at our 401(k) which you keep hearing the word is 201(k) which is rapidly going into 101(k), okay. So, but we are investing in maybe in a 401(k) or something that affect, we invest in real estate and such. But the bottom-line when we talk about the investments, we are talking about the fact that we are taking surplus funds and we are wanting them to grow. That simply would define the investment is. When you are analyzing a property there is 2 ways of analyzing, before tax cash flow and then what is my real estate taxable income, what is my real estate taxable income. So, when we are looking at it, we are looking at it from two perspectives because what you have to understand about investing properties for those of you that maybe new to investments, is that you do not get taxed on the before tax cash flow. You are going to be taxed on the net operating income until we dip and we are going to talk about that in a second. If I have a cap rate say of 10% and say the property is 200,000 and my NOI is 20,000, that would be a 10% cap rate. How to make a cap rate make sense is if you stop them so, that if I leave $200,000 in the bank and at the end of the year, the bank gave me $20,000 worth of interest, my return would be 10%. Okay. So that’s one way of looking at cap rate to see whether it make sense. Now the one thing I would like to tell you, when you are looking at multiplier, the lower the multiplier the better for the buyer of the property. When you are looking at cap rate, the higher the cap rate, the better for the buyer of the property.

Speaker: Credit enhancement and restoration.

Speaker: So obviously the credit score is extremely important because you have to look at this in the long term. A lot of people just want instant gratification, I want it right now. But if you are investor like all of you are, you have to look at the long term effects of credit score and why it is so important. Past due notices destroy scores. Every time you are past due, forget about it, it is a big huge chunk. It is usually 50 to 60 points hit on your credit score, every time that you are late. Missed payments is another big one. And the amount of the missed payment. The higher the missed payment, the higher the impact on the score. The lower the missed payment, the lower it is on your score. Your second factor revolving debt ratio 30% of your score is based upon your credit card, how do you use your credit cards. So, one of the factors and I talked about this on Jason show, is you want to share the debt amongst many cars, Jason called it credit socialist, it may find a little bit funny but it is to an extent true. The reason why you want to do that, if you have two or three credit cards for example, right, and your available amount of debt is $100,000 and you write it, let’s say that three of your cards are zero balance but yet you maxed out on one card, it makes you look like you are maxing out all of your debt. So, what you want to do is you want to spread it along those three cards, so it doesn’t make it look like you are just maxing yourself out on one individual credit card. Get added as an authorized user. What does that mean? It basically means, if I am Danny and I have Sue and Sue has never had any credit in her life because by the way having no credit is as bad as having bad credit, okay, that’s why it’s important to start somewhere. If Sue says you know Danny, I don’t have any credit but she is my sister okay, and Sue comes to me and says Danny, I want to stylish my credit, what’s the best way to do it? Well, Sue can join me as an authorized user, what does that mean? That means that she is on my account, her numbers being reported to the bureaus. So, she is basically on my accounts and she is utilizing my good behavior to show up on her credit reports. So, that’s actually helping Sue gain some credit.

Speaker: Tax secrets of wealthy real estate investors.

Speaker: Okay, just a real basic, tax law overview. Tax returns are based on tax law. Lot of people just don’t think about that. They think, well, I just put the numbers in turbo tax and I get a tax return, but it is based on tax law, tax law is created by congress and written into the internal revenue code. Then the IRS says we are going to make it more simple and we are going to take these two volumes of the internal revenue code and they turn it into six. I don’t know how that’s more simple, but that’s how they work and I like this little quote from George Bush stated that there are more than a million words in the Internal Revenue Code, well, there is a lot more than that. But so we have the Internal Revenue Code, the wealthy individuals hire top CPAs and attorneys so that they can take advantage of tax law or tax loop holes and we are going to go over a couple of those real estate loop holes today. Alright. Real Estate benefits just a recap, one which has nothing to do with taxation is ability to create passive income. That’s why people typically want to invest in real estate. Create passive income. How much money can I make cash go positive each month? Ability to have renters pay your mortgage, ability to reduce income tax, I am going to focus on that today, that is why having in red. Ability to defer investment gain. There is a lady in here that just came up to me and introduced herself and said that she does 1031 exchanges. If anyone done a 1031 exchange, okay a couple. Alright. So, a 1031 exchange allows you to swap one property for another one and assuming that you have a gain in there, you don’t have to recognize it. So, as a recap real estate professionals have the ability to convert passive losses into non-passive losses.

Male: The power of exchange and bring taxes.

Speaker: Under present present law, you can sell and exchange. Sell and exchange over and over again, going up in values, diversifying by multiple investment property all over the country. You can do this over and over and over again and under present law if you pass the way, your heirs receive the property at the step up in basis of spare market value as of the date of your death. And if your heir sell that property at that value at your date of death, they don’t have to pay any of the tax that you deferred over all these years of investing, okay. It’s a huge benefit. Every time you sell a investment property and all of you in this room, appears to me have investment property, I am very pleased to see so many of you own already investment property but when you sell it on page 30, is an example of a property where you have a choice, want you to sell it, you can sell it and pay the tax or you can do a 1031 tax-deferred exchange. And this is a good example of how you calculate that, we have a website, you can go on that website, put your own information, put your own depreciation, put any of your capital improvement, put the variables on that particular sheet into our spread sheet and it will calculate exactly what your taxable event will be. Tax payers intend to hold the property for investment is really the key. You must have the paper trail showing that you held the property for investment, schedule of your tax return because everything is tax free or tax return. So, make sure that you get it on your tax return. It does not have to have the income however. You are going to borrow land and you could have expenses but no income, that would still be considered investment property and again foreign real property is not like kind to US real property.

Speaker: Asset protection secrets.

Speaker: However if you do have a good asset protection in place, plan and place, you will discourage people from suing you just because they think they can get to your money because when they do their asset search, there it shows you with your millions of dollars or hundreds of thousands of dollars of assets. If we do it right, they are going to do an asset search on you and they are not going to see much. Unfortunately it’s also not going to make your life any simpler, but it’s not going to make it overly complex as well. Lot of it really depends on the type of asset protection you need. Think of it this way. You’ve got your assets in the middle and I like to think of it as a true legit. You’ve got risk management, which is one circle, one barrier around your asset. That’s the common sense stuff, don’t drive 120 miles an hour on the freeway, obey the laws et cetera. You also have insurance. Insurance is something that we have to have or should have depending on where your exposure is. If you have your own business, then you are going to have a lot more insurance than if you are just a non-business person and you are just running personal risk. You would have your normal maybe an umbrella policy or to that effect. Here is the problem with international entities. After 9/11, anytime money is going in and out of the country, there is a lot more scrutiny to things. As long as you are not using it to evade taxes, you will be okay. You can do these international entities but it also limits what you can do. So, if you have an international entity, that didn’t come into the US and buying something well, you are not going to be able to do an escort, you know, you are not going to have the tax pass through, it complicates things and so maybe you do it trust.

Speaker: Mobile home perks and self-storage facilities.

Speaker: But this is what is going to set you free, this is what is a huge juggernaut because for every home that we have coming into our park that the space is free, we are not getting any rent whatsoever on that space currently. We are bringing mobile home in, that space all of a sudden, you know, say we have $200 lot rent, we were getting $200 a month lot rent to that space, so we got nothing before, it was just dusty old dirt, if it is anyway, that is 2400 and you put it 10 caps, it’s – I am sorry, it’s $24,000 a month or $24,000 equity we have in that home. If we are bringing 10 homes in one year, which is not who at homes, we usually bring about 20 to 30 and some even 40 at some other parts. But if we bring in 10, that’s a quarter million dollars we just whip it in our equity. That’s also, you know, equity that’s $24000 income that we didn’t have today. A $10 monthly lot rent will increase as $1200 to your bottom-line. What happens with mobile home parks is, it is very difficult at least up until about a year ago, for people to move their mobile home into a mobile home park, it is a cost roughly between $3000 or $6000 to move a mobile home whether it is a single wide or double wide. So, what will happen is, you buy a mobile home parking 60% occupancy, you need to bring that mobile home in because nobody else is going to bring in unless you do. So, we were buying a lot of mobile homes from the banks and we are moving them and we are setting them up and then we are renting among lease option program with the tenant.

Speaker: A client panel. Well, you will hear real stories from real clients and it is not all good, some hardships that how they have been overcome.

Speaker: Mike they call me, and said, hey, we get this model home, I need an answer in 2 hours. So, I had to make this decision, we bought the model home, the builder rented the model home back from us. So, the good thing about that was the rent was like $350 more than what you would usually rent and they pay the property taxes so we bought that from Mike. And then we are going to see Mike at the end of the month. We are going to fly down and see Mike, he is going to pick us up at the airport, give us the tour of [unintelligible 51:35] again, stay at his house, take us back to the airport the next day. So you need to build the relationship with your realtor or management company wherever you go to. Good store it was, I have the model home because that brought in a bunch of income.

Speaker: Certainly in terms of the overall buying experience and the group that focused on education more than just selling properties, Platinum was the best buying experience. My wife and I started buying in 2002 and like Jason said, we brought through Platinum other real estate networks and some totally on our own. So, that was the easiest in terms of the buying experience.

Speaker: Yeah, I did a little bit of research and I knew the areas I wanted to buy. And I went through couple of investment groups, this is the only one that actually agreed with where I wanted to invest in so. Texas was the first place I wanted. I brought in Round Rock, it took me 3 weeks to get it rented out, very happy with it. The tenant was there for about 15 months, they ended up leaving, just took off, we ended up re-renting it within 3 weeks as well. So, actually the first time was three days and that was three weeks afterward.

Speaker: And actually again those properties I did see – I saw three of my Texas properties, all very great communities. One of my friends is actually a property manager in Dallas and want me to – the Dallas property and she just said, you know, heads up, and this was just great construction, great community and so where I really thought very grateful and confident is that, generally speaking, everything that I purchased into is done very well.

Speaker: And so I went to your website, listened to all of your podcast, sending a letter and I came here that week before I went to one of your seminars, I saw this guy took home three properties and I only buy 4, I took only, yeah, the [unintelligible 53:18] and I ended up buying two right at the very beginning.

Speaker: So anyway what I wanted to talk about was the fourth one on the maintenance and monitoring. My husband and I are new to this, we had never owned a rental property, we had own homes, then we will have first house and waited for the equity to build and we wouldn’t have the house really want it but we never were property managers or landlords. And so in the seminar that we had attended one of the things that stuck on our head was, even though you guys are scouting out this property for us and that you are peacefully the property managers, you still have to do your own home working, you still have to be responsible ultimately for your property.

Speaker: One is in Flickerville and Texas, that was the first one I got through Platinum, subscribed, that was a new built $170,000 and it needed no maintenance at all, the tenants been in since day one, took three weeks to get a tenant firstly but and that just on a year-to-year basis release.

Speaker: I got the property rented within 3 or 4 weeks, you know, after the rehab, I have never been there, I probably I am a little delusional, I look at it, I wrote a check for 510 with my taxes and everything and like I said check for you know, around $900. So, seems good to me but so far it is been a good experience, we have an offering for another one and I would recommend everyone to listen to all the podcast and this is free information. I had been, had a rental properties of four which I sold and had a pay capital gains. So, there is a lot of free information to learn and, you know, you don’t charge for that, which I think it is a great service, so I’ve enjoyed the experience, it is a little scary because everybody says, why don’t you go there and look at it, I got to trust somebody and actually the house I brought in California was more worth than this one I just wrote a few checks and made a few phone calls and, you know, it was less worth.

Speaker: Investing in real estate with your IRA.

Speaker: So how it works, if you really want to think about your IRA is being an umbrella, so if you can forgive me drawing, if it now looks like an umbrella, normally if you have an account one of those custodians that I was just mentioning, you can invest in things like CDs, right, what else, stocks, exactly, mutual funds, bonds, things like that. So, with the true self-directed IRA whether that’s with interest or another truly self-directed custodian, you can expand that, we would never tell you not to invest in this list because we want you to be truly diversified. But you can invest in other things, like real estate, so that could be you know, a condo with a single family home or fourplex, to the foreclosures and they can be raw land, can be taxing, LOCs, you can invest in anything except for a life insurance who are collectable and we will talk a little bit more about what a collectable is in a few minutes. So, along with lines with the IRA, if you have a traditional or set for a simple IRA, so anything except raw, all of your funds are going into your IRA on a pre-tax basis, right. All the funds are going on a pre-tax basis and along the same lines, all of your profiting gains, such as rental and it is kind of piece of real estate is going back into the IRA, this is all the profit in the gains going into the IRA.

Jason: My organizational tips. In addition to that if you need quicker and quick books probably, they have 2 files, they have a 2 filing system. And you know, I just developed this with my operations manager. First, you have your acquisition file, this is legal size. Then you have an operations file, it is letter size, but in here you have a system and here you have a description of the house, sales brochure, flat plans, photos, of course, you have your photos electronically of course as well. Purchase contract and your final had one statement, you had one statement as your closing statement, insurance information, copy of your home warranty, your first loan package. Okay, so that’s for your loan when you use it to purchase the party, the purchase money loan. Appraisal report, second loan package if you have a second and here you have your mortgage loan disclosure statement and then here, you know, we just provide like a little glossary of terms, we have this filing system. Here is the couple a cautionary things, this doesn’t happen as much since the credit meltdown but loans used to just get transferred, transferred, transferred all around. Now none of the banks trust each other. Why should they? They all are bunch of crooks, okay, none of these Wall Street firms. So, you don’t see the loan transfers happening quite so much anymore, but remember when couple years ago, you’d get a loan with one firm and then it would be transferred again and then it would transferred again and then transferred again and you know, it is like every three months you are making your payments to a new entity, I mean, that was a hassle and it was easy to miss a payment or get confused, okay. That’s not such a problem anymore, one good thing about the credit meltdown, okay. In fact, it is so disorganized right now, they might just forget you owe the money entitle they may, it’s amazing. Flood insurance and land survey. So, sometimes they all reclassify a property and say it is in floods, it is not – that’s not too common but it is just something to be cautioned.

Speaker: Fighting the two major demons of investment, the demon of risk and the demon of inflation.

Doug: And this is kind of where I get into what I call the post responsibility era. Now I didn’t want to put this in because and Jason said, well, Doug you need to include something about all these bail outs, okay, because you could take as much as risk as you want now, someone is going to bail you out. And I am like, that just feels wrong to me because it is here to me, I always thought that if you take risk and you are an idiot then if you, you know, too much risk, you lose all your money, if you tell people out, we are going to bail you out, we are going to bail out people who act like idiots, all you are going to get is more idiots, which is true but if the government is bailing people out, if they are throwing $100 bills in front of your feet you be kind of dumb to not to pick it up. And so in the post responsibility era, there are opportunities, where even if you have taken risk that have turned out badly, there are chances to not be totally wiped out. Am I saying you should depend on that, no. Am I saying you should be aware of it, absolutely. I am just going to go through really, really, simple illustration of what causes inflation, prices first of all are equilibrium between the amount of money in circulation in the economy and the amount of goods and services that are produced and if the amount of money increases and the goods and services stay the same, prices have to go up. If you just kind of think about it as two bubbles, right, you know, one bubble is your money and another bubble is your goods and services. If goods and services go down, the money stays the same, prices have to decrease. If the money goes up and the goods and services stay the same, the prices have to increase. Now you will always have things trading off commodities go up and down and if we spend more money for say, soya beans or oil, that means it is less to spend on something else and then when there is a lower demand and the prices are just downward. But the only thing that can drive all the prices up at once or all the prices down at ones, is the supply of money.

Speaker: Property analysis, market analysis and property track.

Speaker: So, real estate is a numbers game and to be successful, you really do have to understand the numbers and our goal is to make this as easy as possible. So, we combined eight tools into one package, where you can research the different areas, Jason showed the appreciation map earlier. You can purchase the property by shopping around for the properties through Jason website. Track the income and expenses on the property, do online tax preparation, online loan applications, you have an online document storage systems, so you can keep an off side backup of all of your important documents as PDF files and then we have calendars, contacts and a correspondence log and a bunch of other miscellaneous little utilities. So, those are the basic 3 steps and now we can look at the report. You can look at maps, satellite photos and you can upload your own picture of the property or get it from the real estate agent. Most of the ones on Jason’s website have the picture there, so when you add it your portfolio, it will automatically show up and then finally, you can look at a brief summary report which does the apples to apples summary comparison between the different properties. So, let’s say, I was thinking about buying these three properties, I could just click on this brief summary and it shows me the basic numbers, right on the same page. So, I would look at these and I would say, okay, that was minus 3% cash on cash, 82% ROI. This one is minus 55% and 53, okay that one is out. And then this one is minus 1% and 44. Okay, so based on these three, I would eliminate these two and I would say, that’s the best deal. So, it really takes the guess work out of finding out which property is truly the best deal.

Speaker: Best practices in management.

Speaker: Alright, owner 101, things you should do, things that we expect of you, you should pay your own mortgage, be actively involved in your property people. One, you have to kind of stay you are to get the tax benefits for being an – owner. So, pay your own mortgage, don’t rely on your property management pay your mortgage. Don’t give the control of your property to someone else, no matter what, you know, good guy like myself. Your property manager needs to have plans for you, you have to know what those plans are, if you want to know what they are. You need to know how your property manager is securing your information because it needs to be secure, you don’t want that information floating around. I always notify my owners of their tenant qualifications. I let the owner be involved in that process. It is your property. Why in the world would you let anyone just car plant, move anyone they want to enter your property, why would you do that? Some property managers don’t give you that option, their management contract specifically says, I have the right to move anyone into your property that I think good, and if that’s the way to do business, that’s the way to do business but you shouldn’t have to do that if you don’t want to. Don’t be afraid to ask questions and that’s the key. If you don’t understand something on your statement, if you have a problem with something that happened on your property, the yard wasn’t been mowed, you got an HLA violations into you, ask questions, be involved, don’t be afraid to be a property manager under the fire. Do not feel rush to take a bad tenant, you are sitting here, you had the eight months vacancy and it hurts and you get a tenant that is not so great, but you want to take that chance because you could really use the mortgage being paid. If you take a bad tenant it could work out for you however, if you take a bad tenant you could end up in a worst situation than you are now.

Speaker: You will learn about mortgage planning.

Randy: Let me ask you this, if I asked you to make the list of assets on a sheet of paper, making use of this drawing board here. The typical financial adviser is going to be working with some of your assets, typically your stocks, your bonds and your mutual funds. That makes sense? However, if I asked you guys to make the list of all your assets and real estate was on that list, wouldn’t that real estate being your single biggest asset in your list of assets? Wouldn’t it be? Absolutely, right. And on the liability side, if you have a mortgage or mortgages, wouldn’t that be your single biggest liability, we hope so, right? If it is not your single biggest liability, we got bigger problems, right. So, in addition to that this mortgage, if you have a mortgage is also likely to be your single biggest monthly expense. So, the typical financial adviser again is only dealing with part of your asset, your stocks, bonds and mutual funds, yet your single biggest asset, your single biggest liability and your single biggest monthly expense and I wish that guy from middle, where he is from, who used to be the ex-patriot, David, yeah, I wish he was still here because he would agree with me. Single biggest asset, single biggest liability, single biggest monthly expenses, unfortunately the traditional financial services industry give lip service at best to helping managers very significant numbers. As a financial adviser, lot of times people come to me and say Randy, what can you really do to help me manage my mortgages, manage my debt, manage the equity in the real estate.

Speaker: Market profile, some several markets from around the country.

Speaker: Hi, so the Atlanta, we call the perfect storm. Again, we didn’t research where we started investing. It is just where we live and so we started just investing in real estate there and so we would like to say that we researched and made great decisions because we like the economy and what’s going on there, it just happened that way. But there is a lot of documentation have it all my folders which will be back there, from cnn.com to Forbes, to the Fortune 500 publications of why Atlanta is an incredible market in terms of investment property. First of all, affordable homes. The affordability of houses and quality houses in Atlanta compared to what’s obvious going on in other places and especially here, it is not comparable, the value and the type of nice property that you can get for a low dollar amount is unmatched. The large little market, huge growth of transplants, business transplant they come into the city. Atlanta doesn’t have Hollywood, it doesn’t have the ocean, what else that draws here, an In-N-Out Burger, we don’t have the stuff that draws, you know, people that want to live there, why people come to Atlanta? Corporate, business, climate, the growth is consistent, the corporate, that the job, diversity, the economic growth in Atlanta is huge and it has been for a while, the growth charts are consistent and they are continual, the young professional population is huge, the educational economic atmosphere, there are – in downtown Atlanta area, which you can see here, there are 13 universities and so four of them are on six city blocks right next to each other, then you’ve got Georgia State, you’ve got Georgia Tech, you’ve got Emory. There are 13 universities for the young professionals to come out, obviously are going to be renters initially the transplants have to go to the rent houses, now the rental market not even including the main fact reports which is people that can’t get loans right now, it is an incredible place to own a rental property, right now.

Female: Now you can get Jason’s Creating Wealth in Today’s Economy Home Study Course. All the knowledge and education revealed in a 9 hour day of the Creating Wealth boot camp, created in a home study course for you to dive into at your convenience. For more details, go to Jasonhartman.com. This show is produced by the Hartman Media Company, all rights reserved. For distribution or publication rights and media interviews, please visit www.hartmanmedia.com or email [email protected].

The Jason Hartman Team

Flickr / Sejohnso1