ATTENTION INVESTORS: It is time to increase your rents! Learn more about how “the credit bubble” or “the mortgage meltdown” is BENEFITING landlords with increasing rents and lower vacancy rates. If you are a client of ours or have attended our seminars you are familiar with The Three-Dimensions of Real Estate™ (podcast coming soon) which so many fail to understand. You can profit tremendously in virtually any real estate market so long as you adapt quickly and utilize the most prudent strategy for the current economic environment. There is real urgency to borrow as much high quality, fixed rate, investment grade debt as possible while you still can. The bank and the tenant can pay for 90% of your investment. Rental properties are clearly the best investment for the average person! Just try getting the bank to buy your stocks, bonds, mutual funds, hedge funds, gold, silver or other “investments” and then try renting them to a tenant – definitely a fantasy!

A portion of this podcast is an interview by Al Rantel on KABC Talk Radio 790AM in Los Angeles.

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. 23.  This is Jason Hartman with the Platinum Properties Investor Network in Newport Beach, California.  Great to have you with us today.  We are going to share with you a recent radio interview I did on KABC 790, one of the big, big talk stations here in the Los Angeles, California market for radio, and this was about the mortgage meltdown.  I tell you, there’s a lot that’s changed in the real estate industry over the last several months.  The imprudent, ridiculous actually, lending.  I predicted this would all come home to roost about three, three and a half years ago when we were seeing lenders just give loans to anybody who could fog a mirror or had a pulse.

So today in this radio interview, we’re going to share with you.  I’m talking a little bit about the mortgage meltdown.  We take a few callers that call in and ask questions on the radio show and I think you’ll enjoy it.  This was broadcast, I believe, just last week, early July and it was right after Bear Stearns had downgraded and many of the Wall Street firms had downgraded a bunch of the bonds that were backing the mortgages that were the subprime mortgages that were very, very imprudent mortgages.

So a lot of this relates to the housing bubble and I constantly hear the national media, or any media, paint the housing market with this broad national brush and I’ve always said to our investors, you cannot do that.  The real estate market is a bunch of small, local markets.  There is no real nationwide real estate market.  The old saying in real estate is that all real estate is local and that is true.  So is there a bubble in the real estate market?  Well, I have a funny T-shirt in front of me and it is the Mr. Housing Bubble T-shirt, and we give these away at our seminars sometimes as kind of a raffle gift.  But it says, “Take a bath in the real estate market with Mr. Housing Bubble.  Free balloon mortgage inside.”  And he’s, of course, not affiliated with Mr. Internet Bubble and he says, “If I pop, you’re screwed.”

So kind of a funny T-shirt, but it does illustrate the point that there are bubble markets and there are very good markets to be investing in.  It all depends where.  It’s kind of like that old saying, “What are the three most important rules of real estate?  Location, location, location.”

So listen in on the radio interview and I’ll be back with you to wrap up with a book recommendation.  Talk to you in a minute.

Radio Announcer:
Now the Al Rantel Show on 790 KABC Talk Radio with passion.

Al Rantel: Yes, as McIntyre says, the appetizer portion of the Al Rantel Show this morning at 11:00 a.m. and we’re delighted to be with you.  It’s Thursday already.  What a fast week it’s been.  I’ll be back tonight from 6:00 – 9:00 p.m. and I wanted to talk about where the economic situation, especially because there’s so much in the news regarding what’s going on in the mortgage business and the housing market and the real estate market, and in all the rest of it, and there’s some new headlines on today, so I’ve coerced our friend Jason Hartman to come on with me.  And you know, normally, of course, Jason is very, very, very busy doing his seminars for very smart investors, so he doesn’t have time all the time to come on the air and answer our questions and your questions because that’s all he does all day long.  But I sort of twisted his arm to come on for a little bit this morning.

Hello – now watch how I’m gonna do this friends.  Hello, Jason!

Jason Hartman: Hey, Al, how are you?

Al Rantel: Good.  Now I know you’ve got a few minutes on the phone, but I have a feeling that we might get a lot of questions, so I might ask you to stay, but don’t feel obligated.

Jason Hartman: Yeah, I can stay until your show is finished.

Al Rantel: Oh, you can.

Jason Hartman: I’m available for you, yeah.

Al Rantel: Oh, well, I didn’t wanna be pushy.  Actually, I was being pushy.  I was being pushy in a way that you couldn’t say no.  But I’m glad you saw right through that.

Jason Hartman: I can’t say that.

Al Rantel: All right.

Jason Hartman: Let’s talk about what’s going on out there.

Al Rantel: Oh, my God, yes, we have so much going on.  In fact, I’ll just read you two headlines I have in the news this morning.  One is, “Foreclosure Activity Rises Dramatically.”  The second headline is, “Next, the Real Estate Market Freeze.”  As a result of the collapse of the subprime mortgage market, lenders will gasp and once again require down payments, filling the market with unsold homes and driving down prices.  Now you know, you don’t know who to listen to about what’s really going on in the markets and with the mortgage market, and that’s why I have to put my trust in one person.  That happens to be you; for better or worse for you, that happens to be you.  And I think it’s good for me.  But I wanna – let’s give a whole background.  What in the heck is going on?

Jason Hartman: Well, what’s going on, as we’ve talked about on prior shows Al, is simply the result of many years of irresponsible lending where if a buyer could fog a mirror, they could get a loan.  And that’s come home to roost and now we’re paying for it in the real estate market and the mortgage market.  This largely affects the overinflated bubble markets around the country.  Not the markets that really didn’t see that big rise in prices causing the bubble that we have now in some markets.

Al Rantel: Now we need to pause for a minute because I wanna make sure I’m clear.

Jason Hartman: Yeah.

Al Rantel: When you say the people who – anybody could get a mortgage, you mean what banks were doing is as long as you were breathing when you walked in, they were giving you a mortgage.

Jason Hartman: Mostly, in the post-911 world, all of the powers that be were very concerned about the economy, as they rightfully should have been after that attack, and so the money supply got very, very loose in two ways.  No. 1, the interest rates went to historic lows and so everybody went out and borrowed money, and that’s great.  Borrowing at low rates is an asset.  That’s a good thing.  But also, Al, what happened is there became a tremendous amount of liquidity in the system and tremendous profit potential for lenders to make loans.

And what’s happened over the years – I’ve now been in real estate almost 22 years – is that lending has just changed.  The whole dynamics of lending have changed, whereas everyone in the system is paid to just move money and make loans versus being paid bonuses to be careful.  And so lenders now make loans, they make money when they front loans, and then they sell them off to other investors, which happened in the past, but not to the degree it does today, and they sell them in terms of what’s called “mortgage-backed securities” and Moody’s and S&P, the two big rating agencies, downgraded these mortgage-backed securities.

In fact, as of the 10th of this month, S&P put 612 securities backed by subprime mortgages on what’s called their credit watch negative list and this is becoming quite a big concern as the default rate increases because the lenders have made loans to people that could never really afford the property in the first place.

Al Rantel: Oh, so that’s what happens.  So because this money was so loose – I’m just trying to make everybody understand how we got where we are – because the money was so loose and so many institutions were making loans, they made loans to people that really didn’t have the income to carry the loan and now those people are in trouble.  Is that what’s happened?

Jason Hartman: Yes, that’s exactly what’s happened, Al.  There’s a good distinction to notice.  People are watching the foreclosure rates and the real estate market and I said this to you before.  The media is always trying to paint real estate with a broad national brush and you just can’t do that.  The real estate market is a collection of local markets all over the country.  There are some markets in the Southeastern United States that would be considered extremely healthy, actually, where they are sellers’ markets, where the sellers are in the driver’s seat, and it’s a little bit hard to buy a house.

But here in California, in Arizona and Nevada, Oregon, the Northeastern United States, and a few other areas, the market has become definitely a buyer’s market and I think that will continue and become more of a buyer’s market over the next couple of years.

Now there are two reasons for these foreclosures and these foreclosure rates.  One reason is what you just said.  The people can’t afford the houses they buy.  This is fairly simplistic and obvious.  And these houses in markets like Southern California have appreciated in value a whole bunch, so the fear here is that people could get themselves into trouble by getting in over their head and not having a way to get rescued because the money supply is still very loose historically, but not as loose as it was say two years ago.  And so it’s hard to borrow your way out of your problem now.

Al Rantel: Now they could always sell their property, right?

Jason Hartman: They could sell it, but now you see prices declining and the thing I wanna say to sellers is if your home is on the market now, get your home priced realistically and get it sold.  Get it staged, work with your agent, work with your realtor, cooperate, take their advice.  Your house nowadays better be nice looking and it better be prices competitively, whatever that means for your particular neighborhood because –

Al Rantel: Why do you give that advice?

Jason Hartman: Well, I give that advice to –

Al Rantel: Otherwise, they’re gonna not sell it.  Is that what you’re saying?

Jason Hartman: They’re not going to sell and they’re going to see values decline further in my opinion, personally, because of the subprime issue.  But let me just finish on the one thought on the subprime thing.

Al Rantel: Yeah, please, yeah.

Jason Hartman: Okay, so here you’ve got people in bubble markets that could never afford the property that they’re in and they can’t borrow their way out of their problem now.  Over the last couple of years, America’s been using their home like an ATM machine.

Al Rantel: Right.

Jason Hartman: Whenever I need cash, I just borrow from my home equity.

Al Rantel: Right.  Right.

Jason Hartman: But the lenders aren’t there with the money the way they used to be so it’s a little harder to borrow.  But in some other parts of the country that haven’t seen this big run-up in prices, the parts that are good places to invest now, like the Southeastern United States and a few other states like Utah, etc, in those markets, some people walk away from their properties for different reasons.  They’re not really in over their head so much, but they haven’t had a big run-up in price, so they walk away many times, in essence, because they don’t have much to lose.  Hurts their credit score, obviously, but a lot of people they’re not really thinking about that in the future too much.  And they don’t have a big chunk of equity to lose.

But here in Southern California, most people still have big chunks of equity that they need to take action to protect, and the way to protect it if you can’t afford your house is to get it priced right, have it showing good and get it sold.  So that’s the advice.

Al Rantel: Yeah, you get it sold and then – well, then, of course, you’re talking to people who are having people making the naddas, they say, right, the thing with that.

Jason Hartman: Absolutely.

Al Rantel: All right, so they get it sold, but then they have – well, hopefully, they sell it for more than they owe, obviously.  I mean otherwise you wouldn’t be –

Jason Hartman: Well, that’s an interesting point you make, Al.  You know, some people – actually, I would kind of reconsider that.  Someone is listening that is trying to sell their house and hopefully, like you said, they’re selling it for more than they owe, but the first question is, look back in history.  Did you borrow a bunch of money from your home over the last few years?

Al Rantel: Right.

Jason Hartman: I would say you’ve made money if you sold it for more than you paid, not more than you owe because you have only –

Al Rantel: Right, right, more than you paid, yeah.

Jason Hartman: You may have already taken your equity out of the property.  There’s your problem.

Al Rantel: Right, yeah, you may have spent your profits in advance.

Jason Hartman: Yeah, exactly.  So you know that new plasma TV you bought –

Al Rantel: Kinda like the government does.

Jason Hartman: – and the vacation you went on, you know, there’s your profit.

Al Rantel: Hey, Jason, stay here with me, okay?  We’re gonna come back and talk more about what people do with the way the economy is right now.  Where do they go to make money and that kind of stuff, right?

Jason Hartman: Sounds good.

Al Rantel: And where you think it’s all going, especially if we can focus on California because that’s where our people are.  All right, now you know why Jason Hartman is the guy I trust.  He’s the smartest person I know in this business and I’ve been around.  I’ve met them all and this guy is just – he just gets it.  He’s smart.  I like smart people; I like smart people, especially when it comes to answering the questions how to make money, how to protect your house.

So I’m gonna give you an opportunity to talk to Jason about anything to do with the world of the economic real estate, money situation, the economy situation.  1-800-222-KABC.  But I’ve gotta ask him a couple of questions when we come back, and we will have time to get to calls.  So first up will be first on.  We never have time to take too many, but we’ll get as many as we can for Jason Hartman.  That’s 1-800-222-KABC.  Right back.

Radio Announcer:
The most powerful name in news and opinions.  790 KABC.

Al Rantel: Our money/real estate brain is joining us this morning on the Al Rantel Show.  That’s Jason Hartman and I ask him a lot of questions because I know nothing about this area of life, except what I’ve learned from Jason and some of the people like him before.  But he’s the smartest one I know so far, so Jason, thank you for coming on.  We have a ton of calls for you.

Jason Hartman: My pleasure to be here.

Al Rantel: But before I get to them, now I know you’re really busy and I know I always tell you I’m gonna have you on for ten minutes and it winds up being the whole time, but that’s sort of how I get you to come on.  Now listen, let me try to ask it this way.  If someone is listening in California, would they – would you recommend that they buy a house now if they don’t own their own home?  Would you recommend that they invest in other real estate now in California or elsewhere, or wait?  And should you view your own home as an investment and not care what the market’s gonna do and just buy it because you’re gonna live in your house?  I mean I guess I’m asking kind of a series of elementary questions there, but maybe you can handle that first and then we’ll take the calls.

Jason Hartman: Well, those are all great questions and basically, my answer in a nutshell is if you don’t own a home here in Southern California, you should continue renting.  Renting is actually, at the moment, a better deal and the reason I know it’s a better deal is because we are in 32 markets right now, actually 33 now around the country, and one of our factors is, Al, what we call the RV ratio or the rent to value ratio.  And in Southern California, or even in Northern California, you can rent a property here for about .3 or .35 RV ratio.  So the million dollar house in Manhattan Beach or wherever it is, can be rented for about $3500.00 a month or so.  Okay?

Al Rantel: You’d never be able to pay off a mortgage on a million dollar house for that, right, with the taxes and everything else.

Jason Hartman: Oh, not even close.  Not even close.  And so, of course, homeownership is a good idea because you get tax benefits.

Al Rantel: Right.

Jason Hartman: And there’s all kinds of surveys that show that homeowners are more wealthy than renters and become more wealthy over the course of their life.  The question is timing.  So the question is when, so I say continue, unless you need a home for your psychological reasons, and I understand there are issues of pride of ownership and all of that is great.

Al Rantel: Yeah, your wife just found the perfect house and she has to have it.

Jason Hartman: And the wife is the boss.

Al Rantel: Well, that’s true.

Jason Hartman: So the thing is continue to rent here for probably another two and a half or three years and do your real estate investing in other healthier markets around the country.

Al Rantel: And that would be where?

Jason Hartman: Well, that would be mostly the Southeastern United States.  There are many areas, so it’s a big country and I’m sure we don’t have time to discuss all of them, but we like, just in a nutshell, Texas, Georgia, the Carolinas, Alabama, Mississippi.  These are tremendously good markets right now to invest in, offering rates of return to real estate investors exceeding 40 percent annually.  And nobody’s getting that on their stocks, bonds, or mutual funds, I’m sure.

Al Rantel: And you’re not gonna do that in California right now.

Jason Hartman: Not right now.

Al Rantel: No way.

Jason Hartman: Not right now, yeah.  And if you own a home in California –

Al Rantel: Yeah.

Jason Hartman: –get serious about selling it.  Stop waiting and waiting and waiting, and thinking everything is going to be okay next month.  It could happen.  Something could change.

Al Rantel: Wait a minute.  If I own a home now in California and I like my house and I’m not having trouble making the bills, right, wouldn’t I be thinking well, I’ll wait because the prices are gonna go, start jumping back up again in a few years?  No?

Jason Hartman: Well, in several years, they probably will start jumping back up again.  And so your primary question before was should your home be viewed as an investment.

Al Rantel: Right.

Jason Hartman: And I say no.  Your own home is not an investment.  The only thing I really consider an investment is a rental property that produces income and the dynamics are such that that is such a fantastic arrangement.  I mean, Al, think about it.

Al Rantel: Yeah, you’ve got someone else paying your bills.

Jason Hartman: Someone else pays the mortgage.

Al Rantel: And the interest, yeah.

Jason Hartman: And you borrow most of the money from the bank and someone else pays the bill off for you.  What better deal is there than that?  You can’t do that with stocks, bonds, mutual funds.  When you do that, you pay cash and you pay for it yourself.  Here your tenant finances your investment.

Al Rantel: Now let me – now Jason, let me at least get one call in before the break and then we’ll get the rest of the calls in in the little time we’ll have left.  David, you’re on KABC and you’re with Jason Hartman.  By the way, for all the callers that don’t get through, you can find Jason at his website, www.jasonhartman.com, which is pretty easy.  David.

Caller: Hello, Jason.

Jason Hartman: Hi, David.

Caller: How are you doing?  Sure.  Okay, I’ve got a question.  Some of what you just touched on just before, I am moving from the L.A. area to San Diego next month for a job and own a home here and getting ready to put it on the market, about a half million dollars of equity I expect to get out of it, and also, I’m over 55 so I’d like to do the Prop 90 deal.

Jason Hartman: Right.

Caller: It’s a little hard since we wanna get a bigger house down there for about the same price, a nicer, newer home, and the market is high down there right now.

Jason Hartman: I know it is.  San Diego is an overvalued market right now.

Caller: So I presume you’d recommend maybe renting for – I’ve got two years, right?

Jason Hartman: I would recommend renting and on what he’s talking about, for everybody else who’s listening, is moving your property taxes.  When you’re over a certain age, you can keep your property tax base in certain cases and if he’s owned his home a long time, you know, David can move those low property tax rates over to the new property, and that’s a great deal.  It’s probably not a good enough deal to offset the current market conditions, though, so if you’re allowed to wait two years – and I can’t confirm that; I’m not an expert on the Prop 90 thing – but if you’re allowed to wait two years, I would definitely be renting initially on your move to San Diego because you know, you also find out what area you like and so on and so forth.  You may change your mind about where exactly you wanna live down there, and you would definitely be better off to sell your home now and rent for a little while.

Caller: All right, great.  Appreciate it.

Jason Hartman: Okay, thanks for the call.

Al Rantel: And then you what?  You wait a couple of years until the prices soften further and then you buy.

Jason Hartman: Absolutely.  It’s all about timing, so just –

Al Rantel: He’s got a half million dollars and we could do a whole seminar on one person, but if someone has a half million dollars equity they took out of their house, right, they wanna do something with that money to grow it a little bit in those couple of years while they’re renting, don’t they?

Jason Hartman: Absolutely and you know with a half million –

Al Rantel: You don’t wanna keep it in the mattress.

Jason Hartman: Don’t keep it in the home.  The home is the worst place to keep money.

Al Rantel: Yeah.

Jason Hartman: Keep the lenders money in the house.

Al Rantel:
Well, of course, some congressmen keep it in the freezer.

Jason Hartman: Exactly.  Pull that equity out and put it to work.  Remember, whenever you invest in real estate, you can either keep the money in the bank and let someone else put the money into the real estate, make them pay to your bank –

Al Rantel: Right, right.  Right.

Jason Hartman: –and keep control of your money.  I say home equity is one of the worst investments going.  Pull the equity out of the house and use it to buy rental properties that someone else, the tenant, pays for.  That is such a great arrangement.  No other investment has those characteristics.

Al Rantel: All right, Jason, stay here.  We’ve got lots more calls.  We won’t get to all of the people who would like to talk to you, but I’ll squeeze in as many as I can.  Jason Hartman is with us talking about where we are in the real estate business.  A lot of headlines in the news today.  Just today, the “Real Estate Market Freeze” and the other headline, “Foreclosure Activity Rises Dramatically.”  Jason’s telling us what’s going on, but of course, the smart people always come out ahead.  That’s why we hook you up with him when we get the chance.  Right back 790 KABC.

[Radio Break]

Al Rantel: The Al Rantel Show here finishing up with Jason Hartman, and the time, whenever we get to talk to Jason a few minutes, it flies.  He’ll come back maybe next month or whenever.  I’ll be gone for a couple of weeks, but he’ll be back and we’ll try to do this again.  There’s always news about this and he’s just the guy to ask.

Now, Jason, if people can’t get you on the phone here, we’ll have them go to www.jasonhartman.com.  You don’t mind if they quiz you some, ask you a question, or whatever if you have time.

Jason Hartman: Oh, no, not at all, Al.  You know, they’re welcome to call my office if they can’t get on the air.  The number is 1-800-40JASON.

Al Rantel: Okay.

Jason Hartman: Just think of a 40 percent return on investment, okay?

Al Rantel: I wish, yeah.

Jason Hartman: 40JASON; 1-800.

Al Rantel: That’s clever, Jason.  You’re a real money guy.  Let me ask you one quick thing.  I got an email from a listener here who sounds like she’s very confused and she says, “I’ve got an adjustable rate mortgage.  Ask Jason if this is the time to get out and make it fixed.”

Jason Hartman: Fixed rate is definitely the way to go.  Money is on sale and I say lock up long-term, very low rates for the next three decades.  That’s a great deal.

Al Rantel: The next three decades, oh, you mean you think this is the time to lock up for the next three decades?

Jason Hartman: Well, for 30 years, where else can you borrow money for 30 years at the lowest rates in nearly 40 years?  As long as you’re going to stay in your house for a decent amount of time, fixed rate loans are the only way to go.  We always recommend fixed rates in this market because the mortgage is a big part of the asset.  That’s what’s so great.  In an inflationary environment like we’ve got now, Al, borrowing money is a huge benefit.  It’s a huge asset.  Most people think borrowed money, debt, is a liability.  It’s really an asset, though.

Al Rantel: Yeah, because I’m gonna pay you back with dollars that are worth less.

Jason Hartman: Absolutely.  In ten years, that $100,000.00 loan will only be about $43,000.00 with a mediocre rate of inflation, which I think is really quite a bit higher than we’re told.

Al Rantel: Right, right, we’ve talked about this before.  That’s very – and any – listen, anybody goes out and buys things every day knows that inflation is not 3 percent.

Jason Hartman: Oh, it’s much higher.

Al Rantel: Baloney.  The government’s imagination.

Jason Hartman: You’re absolutely right about that, no question.  And we started off the talk today about the bonds and the bonds being downgraded.  Just remember, when the lender is the one who gets hurt in an inflationary environment, so when you buy bonds, you’re basically lending money.  That’s a loan.  Okay, that’s what a bond is.  And when you borrow money, you’re acquiring an asset, so as long as you borrow to acquire an appreciating asset –

Al Rantel: It’s good to borrow.

Jason Hartman: –that someone else pays back, the tenant pays back for you, it’s great.

Al Rantel: Yeah, in other words, you wouldn’t borrow to go on a round-the-world cruise because that’s money you’re gonna have to spend, right?

Jason Hartman: No, then you’re just spending.  That’s spending, not investing.

Al Rantel: Yeah, I gotcha, gotcha.  Daniel, you’re on KABC.  Go ahead.

Caller: Yeah, Al, you’re great, you’re funny; I listen to you every day.  I have a two-part question for Jason.  First question is my wife and I were in the market looking to buy and I understand you’ve mentioned wait two to three years.  My question to you is 20 percent down, we have at least $100,000.00 cash; is it wise to put 20 percent down for a sale of say $500,000.00, $600,000.00?  And my second part is how soon do you predict the equity to build on a house?  I’ve heard it’s maybe seven – ten years.

Jason Hartman: I don’t understand the equity build question, so let me answer that one in just a moment.  But your first question about how much to put down, my answer is always don’t use real estate as a bank.  Real estate is the best investment, right place, right time; that’s my caveat to that, but it’s overall, the best investment, no question.  But it’s the worst bank, so put as little as possible into the property.  The property is not a safe place to keep money.

Remember, when you put money into equity, you put more down rather than less down.  It’s like putting your money into a bank account that is not FDIC insured and pays you zero interest.  There’s no reason to put money into property when you can borrow it at historically low rates.

And your second question, I’m not sure I understand, so I need a little clarification on that.

Caller: Well, I’ve heard if a person purchases a house, it’s gonna take maybe seven – ten years because the market’s so volatile till you’re finally gonna have some equity in there.

Jason Hartman: Well, the answer to that is it always depends where.  I mean you could be in some markets around the country that are appreciating dramatically and –

Caller: Well, I mean, for instance – right, right.  For instance, Southern California, the prices are pretty stagnant.  They’re not gonna get any higher.  Do you see them getting any lower, things like that?

Jason Hartman: I see them getting a little lower over the next two and a half years here in Southern California.  Overall, Southern California will come back.  I mean it always has.  It’s just a matter of timing.  Look it.  We are in the hangover phase from a big party.  House prices more than doubled in many areas, so –

Al Rantel: We’re taking a breather.

Jason Hartman: Yeah, we’re taking a breather.  The buyers are rejecting it so you can see you’re going to get some of that appreciation back.

Al Rantel: All right.  Daniel, very good questions.  Well, as always we have a lot of people we couldn’t get to and I’m sorry about that, but I hope we answered some of your questions.  Jason, thanks for your time.

Jason Hartman: Thanks for having me on, Al, and any of your listeners are welcome to just give us a call or visit the website at www.jasonhartman.com.

Al Rantel: www.jasonhartman.com.  Yeah, please help them out if you can because you know what, Jason?  If you make my listeners richer, are you following this Jason?

Jason Hartman: Yes, I am.

Al Rantel: If you make my listeners richer, they can afford to buy all the rest of the things I advertise.

Jason Hartman: Sounds good to me.

Al Rantel: How’s that?  And then we grow the economy.  I’m trying to grow the whole economy.  Thank you, Jason Hartman.  We’ll see you tonight.  KABC.

Jason Hartman: All right, welcome back.  I hope you enjoyed the radio interview.  I wanted to make a book recommendation to you.  Two books by a gentleman named Douglas Andrew, he wrote Missed Fortune and then he wrote another called Missed Fortune 101.  And I have never heard anyone nor actually read anybody explain the reason you want to use your home equity quite as well as Douglas Andrew.  Really good, good information.  Now, I do – I must tell you that I disagree with him on how to use the equity, but I definitely agree with him on the first part, which is that you should use the equity.

So take a look at those books, Missed Fortune and Missed Fortune 101 by Douglas Andrew and I think you’ll enjoy them.  Also, remember you’re welcome to email us questions and we’ll be glad to answer them on future podcasts.  Go to www.jasonhartman.com and check out the other podcasts.  A lot of core material in there from old podcasts.  Be sure to take advantage of that.  It’s all free; it’s all there for you.

And join us for our various live seminar events and our live conference calls where you can ask questions as well.  So we will see you next time and thanks again for listening, and happy investing.

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.

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Duration:  34 minutes