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SHOW NOTES FOR EPISODE 123: INVESTING SMART IN DIVERSE MARKETS
Jason Hartman is a self-made multi-millionaire and serial entrepreneur who hosts 20 podcasts, has started 21 companies, owned properties in 11 states and visited 79 countries. In this episode, Jason shares his “insider” real estate investing secrets and discusses how he has managed to invest both smart and conservatively in multiple diverse markets.
What You Will Learn
- The importance of diversifying geographically
- The 3 types of markets to invest in and which is the best
- What “inflation-induced debt destruction” is and how it can increase your property’s value
- Jason’s “10 Commandments of Successful Real Estate Investing”
- Why you need to main control over your investments
- What is the absolutely worst investment you can make
About Our Guest
Jason Hartman
Jason Hartman is the host of 20 podcasts with 3,000 episodes where he shares powerful strategies for business, investing and living the good life.
He is a genuine self-made multi-millionaire and serial entrepreneur who has started 21 companies in the investing, financing, real estate development and tech spaces. He has owned properties in 11 states, has had hundreds of tenants and been involved in several thousand real estate transactions. He has visited 79 countries, enjoys adventure, fitness and lifelong learning.
More About Jason
- Grew up relatively poor in Los Angeles
- Didn’t like being poor
- Was inspired by people like Zig Ziglar, Earl Nightingale, Jim Rohn, Denis Waitley
- Saw late night no money down infomercial from guru – bought the book
- His mom read the book and started doing things she learned in the books
- She invited him to a 3-day weekend real estate seminar
Became a Real Estate Agent
- Started researching real estate school to get his license first year of college at 19
- Started selling part-time through Century 21
- At age 24, he was 59th in the world for ReMax
- Did well and dealt with real estate investors
- Bought first rental property at 20 from one of his investors
- Bought his own real estate company in So Cal and owned it for 8 years
- Sold it in 2005 to Coldwell Banker
Wanted to Diversify Geographically
- Looking to invest the money he made from the sale
- Started researching other states
- Wanted to buy income property
- Three Types of Markets
- Linear Markets – Conservative, buy ‘n hold, that produce very good cash flow. Investors invest for yield. Good cash-on-cash returns. ROI: 8-10%. Places he regularly invests:
- Oklahoma City
- Jackson, MS
- Memphis
- Indianapolis
- Little Rock, AR
- Orlando
- Atlanta
- Jacksonville, FL
- Parts of Chicagoland
- Cyclical Markets – Riskier. Betting on value change, increased equity. Places like:
- New York
- Paris
- Most of California
- Portland
- Seattle
- South Florida
- Washington DC
- Boston
- London
- Hong Kong
- Dubai
- Hybrid Markets. Something in-between Linear and Cyclical. Places like:
- Phoenix
- Denver
- Austin
- These properties can do well
- Additional, little known, value of investing in rental properties — inflation-induced debt destruction: Where your mortgages are paid-off and, as inflation weakens the value of the dollar, property value increases
- Linear Markets – Conservative, buy ‘n hold, that produce very good cash flow. Investors invest for yield. Good cash-on-cash returns. ROI: 8-10%. Places he regularly invests:
Today
- Has 280 doors (SFRs, apartments, mobile home park)
- Has made many mistakes and has learned along the way
- Has a podcast called “Creating Wealth” where he helps others to learn how to invest
Jason’s 10 Commandments of Successful Real Estate Investing
- Thou shalt become educated.
- Thou shalt have a professional Investment Counselor.
- Thou shalt maintain control.
- Thou shalt use prudent financial planning techniques.
- Thou shalt not gamble.
- Thou shalt diversify.
- Thou shalt be Area Agnostic™. (don’t get attached to one area)
- Thou shalt borrow to maximize leverage and accelerate wealth creation.
- Thou shalt only invest where there is universal need.
- Thou shalt invest only in tax-favored assets.
Maintaining Control
- People should be direct investors
- Better to maintain 100% control
- Better than partnerships, or being part of syndication
- If you don’t maintain 100% control you are vulnerable to three main problems:
- You might be investing with a crook
- Might be investing with an idiot
- Take a huge management fee off the top to manage the deal
Jason’s Top Investment Picks
- Single Family Homes
- Apartments
- Mobile Home Parks
- Self-Storage
Worst Choice Investments
- Anything sold on Wall Street
- Because it’s easy, most people do it but it doesn’t mean it’s a good investment
- “Machine designed to separate the middle class from their money” – Bill Bonner from Agora Financial
Where He Sees His Company Going
- He sees many great opportunities ahead for investors
- Hopes to help make those opportunities known to his customers
Rap-it-Up
- Favorite Real Estate Book: Creating Wealth by Robert Allen
- Favorite Business Book: 7 Habits of Highly Effective People by Stephen R. Covey
- Favorite Website for Business Success: Voxer.com (Voice messaging App) Can reach him via Voxer at jhart88
- Favorite App: Voxer
- Favorite Quote: “To know and not to do is to not yet know” – Zen saying
- If you lost everything and only had $1,000, how would you rebuild your business? Following suit from the book, “The $100 Start-Up” by Chris Guillebeau, I would start-up a new business from scratch. Become a content and thought leader instead of spending a lot of money on marketing.
How to Reach Jason
- JasonHartman.com
- On iTunes – do search under Jason Hartman
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