PART ONE: Jason talks with, Sara Liskey, one of our Rental Coordinators about getting your properties rented fast. As the rental market improves this has become easier; however, it is very important to maintain high occupancy for your rental properties to insure excellent ROI. Jason believes that the best investments are rental income properties; therefore, he does not recommend vacant land as it is a speculative investment based on the hope of unreliable appreciation rather than rental income which is far more reliable and offers staying power for the investor.
PART TWO: Jason is interviewed on KABC Talk Radio AM790 where he talks about Eastern Europe’s real estate market (full detail on future podcast) and explains how the $27 billion per month adjustable rate mortgage reset issue is affecting the stock, bond and real estate markets. Many Wall Street investors have lost money due to the misleading valuations of Moody’s rating the debt asset tranches of various hedge funds including Bear Stearns, Goldman Sachs and Deutsche Bank.
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. 25. This is Jason Hartman with Platinum Properties Investor Network and we have a great podcast for you today on two, not one, but two subjects. The first part, we’ll be talking a little bit about rental coordination and I’ll be interviewing one of our rental coordinators here. And then the second part will be a radio interview, actually a really fascinating radio interview I did recently on KABC Los Angeles. So listen in and enjoy.
I’d like to talk to you now about part of our complete solution for real estate investors. As many of you know, the complete solution that we offer here consists of five basic steps. No. 1, investor education and consultation. Step 2, financial analysis and the proper use of leverage. Step 3, acquisition, actually finding the right investment properties and acquiring them, and also allocation so that your portfolio is nicely diversified. And then Step 4, which is the one I brought a guest into the office here to talk about, is the step that most investors get so hung up on. It’s Step 4, it’s the maintenance, management, and monitoring of your real estate investments.
So we have got Sara here. Sara is our Rental Coordinator and she does a fantastic job in helping you, our clients, get your properties rented and keeping them rented, and dealing with any of the management related issues. Remember, we’re here not just at the beginning, but we are here all the way through the life of your investment. As long as we are in business, we will be with you. So we’ve been in business now for ten years and we will be in business for many, many more and we will have our rental coordinators here to help you with any management, maintenance, and monitoring issues that you need assistance with. So Sara, welcome.
Sara Liskey: Hi.
Jason Hartman: Well, it’s good to have you. Tell us a little bit about what you do in helping clients get their properties rented.
Sara Liskey: Well, what I basically do is stay in touch with the property manager, as well as our clients, and I’m sort of the middle man here. A lot of times, people have a little difficulty getting rented right away and they feel nervous, especially if it’s their first investment property, and so I’m here to kind of put a little pressure on our property managers. And also, I’m here to put your ads up on Rentals.com, Craigslist, and that way we can find renters for you.
Jason Hartman: Yeah, so what we do is we don’t just leave it to the property managers then. Our rental coordinators basically help you in making sure that you have some extra help in getting your properties rented, getting them rented quickly, because we do not like vacancies here.
Sara Liskey: No, we don’t.
Jason Hartman: We want to get them rented quickly. And so you go ahead in addition to the advertising the property manager is doing, you’ll list them on various websites, like Craigslist, RentClicks, Rentals.com, and there are several others I know that you also use, and kind of do an extra step above and beyond what the property manager does. One of the things that we have noticed over the years, Sara, is that when a client is buying through our network, we exert a lot of leverage over that property manager to make sure that they really make the extra effort, go the extra mile, to get the properties rented quickly and at the best rental rates. So Sara, what are the advantages of having our network behind the client and what makes it easier for them? I mean I know our goal definitely here is to make this as passive an investment as possible for the client so they don’t have to get too involved with it.
Sara Liskey: Right and one of the great advantages you have in working with us and our network is that we have the power of leverage over our property managers, whereas if you go and make a phone call and email them, they don’t know you on a first name basis and they’re not gonna respond as quickly as if I go in and make the phone call and the email. We have a lot of business that we give to them and so they respond very quickly to me.
Jason Hartman: Yeah, I definitely agree with that and I’ve noticed, I remember you were telling me last week about how you had one particular client who, you know, the property manager was getting back to them and taking care of them and responding, but it was just kind of a slow response.
Sara Liskey: Right.
Jason Hartman: And so you called the property manager for the client and they got right on it and took care of business.
Sara Liskey: I scared them.
Jason Hartman: Yeah, good, good. Well, that’s what we’re supposed to do. So we talk a lot in our seminars and on the podcasts about the power of leverage, meaning financial leverage, the power of borrowed money and increasing rate of return and reducing risk on real estate investments, but here, what Sara does in the rental coordination is really not just the power of financial capital, but human capital, leveraging human capital so that you as the client are spending less time dealing with your properties, and we’re really making that a lot easier for you.
What else were going to say about that? I know you had something else to mention.
Sara Liskey: Well, I do take a lot of time and investigate different resources in getting your properties rented. I follow up with property managers. I find out what they’re using. Sometimes I use what they use.
Jason Hartman: The different resources they use.
Sara Liskey: Right, exactly. What I also do is I take everything that they have and I add to it. They give me the appraisal reports, they give me the pictures, but I actually put them into my computer. I go through them. I pick the best pictures that are going to be appealing to renters and come up with a great description of your property and really, just make it appealing to renters.
Jason Hartman: So you clip the pictures out of the appraisal report or gather them from the property manager or the client or wherever.
Sara Liskey: Right.
Jason Hartman: And you put an ad together, nicely written ad. You post it on the various resources we use on the internet.
Sara Liskey: Right and a lot of these things can be really time-consuming and I just really wanna get that out there. I know a lot of our investors are very busy with their own businesses and their own careers, and they don’t have time to do all these things. So I’m really happy to just be here. Any questions that I can answer for them or concerns or anything that I can do, I’m here to really help them out the best that I can.
Jason Hartman: Super. Now, one of the things that I love about real estate investing, Sara, which you kind of eluded to just now, is the fact that it’s a really fragmented business. What I mean by that is everybody does it differently. Rentals seem to be handled differently. In some markets around the country – now we’re just talking about U.S. investments right now – the realtors will use the multiple listing service and they’ll list the rentals in the N.O.S. In other areas, it’s all done by newspaper, signs, and maybe ads on various websites.
Sara Liskey: We try and do it all.
Jason Hartman: Yeah. So we really try to cover all the bases and because you do this all the time and every day, you really know what works best in each particular market, and it’s different from city to city, from state to state, isn’t it?
Sara Liskey: It is. It is different. And I get a lot of great feedback also from our property management company as far as the leads that I get for them. Sometimes, by the time my leads come in, they already have a renter in there because we’re fresh in their mind and so when I’m constantly sending in the names of our investors, they remember us and so they wanna help us get rented quicker.
Jason Hartman: That’s great.
Sara Liskey: Than you could do on your own.
Jason Hartman: We really wanna have properties rented quickly, obviously, and one of the things we always say, for those of you clients out there listening, is three weeks before your closing on the property, hire your property manager. Get the property management agreement signed with them three weeks prior to close so that they have kind of a head start, if you will, and they’re working on the property and getting it ready to market, and maybe doing some marketing and they know it’s coming available. So if they’re working with the tenant in that area, they can say, hey, this one’s about to close and I’ll have that up for rent soon.
Sara Liskey: And that’s a great point that you make. I did that for my own personal property. I coordinated with the property management about two to three weeks ahead, exactly like you said, and I just barely got my first response from my ad. So the sooner you do it, the better, and you really need us to help you.
Jason Hartman: Yeah, absolutely. You do that and get a head start on it. But you know, just to mention on that point of fragmentation, every property manager works differently, every real estate agent works differently, every developer is different, and markets are different just the way the industry has kind of matured all around the country in different places. Everybody has different customs. And in a way, that’s kind of frustrating. Wouldn’t it be nice if you could just do it all the same everywhere, right?
Sara Liskey: Right.
Jason Hartman: But that frustration actually brings forth a great benefit for investors. See, if it was all homogenized and it was all the same everywhere, it would be much easier for the institutions to enter our market, and that’s why our investors can get such great rates of return, exceeding 40 percent per year in many cases because it’s the type of thing where it’s a fragmented industry and you can’t institutionalize it very easy, which is good. It keeps Wall Street out. It keeps the big players out and it keeps the profit in it for the individual investor.
Anything else you wanna mention to our clients about rental coordination, getting their houses rented?
Sara Liskey: Just don’t try and go it alone. It’s very difficult to do it on your own. You really need the networking effect. We’re all here to help, not just myself, but our investment counselors are here to coordinate with me and we’re really a great service to you, and you don’t have to pay us. That’s the great thing. We’re just here to help you.
Jason Hartman: We do this all for free. This is just part of the services we offer to our clients and we pay for all of the ads that we post on the internet on your property and so on and so forth, so there’s no charge to clients at all. We don’t charge for advice. We are strictly in the real estate brokerage business and that seems to be a very good model and we’ve produced a lot of happy clients with it. So now you’ve heard a little bit about our free rental coordination service and remember that is for the life of your investment. As long as we’re here, we’ll be happy to help you coordinating your rentals and get you taken care of. So even a year later, two years later, three years later when your tenant moves out and you need some assistance again, just call your investment counselor here at Platinum Properties Investor Network at any time. We’ll be glad to help you out.
Now let’s listen to a recent radio interview on KABC. I think you’ll really enjoy this. We hit on a lot of subjects. We talk about the adjustable rate mortgages and the resets and the amount of the resets, and of course, the overriding topic of the credit bubble and a lot of issues in the economy. So this is just a few minutes long. Enjoy.
Al Rantel: Yes, I am ready with our Friday announcement music. Good to have you with us. Talk Radio, 790 KABC, the Al Rantel Show. I will be back tonight. I know I was out last night, but I’m back for tonight, and tonight from 6 – 9 p.m., right after the Larry Elder Show, we will have our usual. Well, we’ll have an hour at 6:00 p.m. to talk about a few things we have in mind, but then after that, remember, it’s our worldwide exclusive, our connection with the United Kingdom and the Mike Mendoza Show where we find out what the world thinks about some different things and what we think about the world. And that’s always a very unique and interesting experience, so we hope if you’ve not heard – I’m guessing most of you have, I hope – but if you haven’t, it’ll be a treat for you to hear it for the first time.
Now, so much has gone on in the mortgage market, the real estate market, the financial markets, the layoffs in the mortgage industry, the Federal Reserve taking action, the Europeans taking action; the credit crunch, or credit tightening, where people are finding out that it’s tougher to get a mortgage than it was only a few months ago, and I have been waiting for Jason Hartman, our in-house expert on all this stuff from Platinum Properties Investor Network to get back. And Jason, it seems like you were gone when all the news was breaking. I had nobody to help me.
Jason Hartman: You know what, Al? I kept watching it on CNN over there in Europe and I tell you, there was a lot of news while I was gone –
Al Rantel: Yeah, and you kept saying I’ll bet Al Rantel is calling me and I’m not there to take his call.
Jason Hartman: Sorry about that, I’m –
Al Rantel: No, no, no, I knew you were going away because we had talked a few weeks before you left, or a week or so before you left, and so I knew you were gone. But all the news seemed to break and I was calling the folks there at Platinum Properties and I was saying is Jason back yet because I got all this stuff to talk about. So I’ve kind of – we’ve kind of saved it all. We’ll have to get it all in. But how was your trip?
Jason Hartman: It was terrific. I was traveling around Eastern Europe looking at real estate deals over there.
Al Rantel: Wow, you know, there’s gotta be a lot of growth there, doesn’t there?
Jason Hartman: When a country joins the EU, it just changes everything. Billions of dollars, or Euros, I should say, just flowing there and lots of development, lots of growth, but Al, I’ll tell you something. If you think real estate’s expensive in the U.S., try Europe.
Al Rantel: Right.
Jason Hartman: I mean it is so expensive there.
Al Rantel: Oh, I have friends in London and they say you can’t even afford a small apartment there.
Jason Hartman: Oh yeah, I knew London’s expensive. I mean that’s a financial center, obviously.
Al Rantel: Yeah.
Jason Hartman: But in Eastern Europe in Romania and Bulgaria, Estonia and Latvia, it is not cheap!
Al Rantel: Why is that? I thought their economies were kind of still developing and stuff.
Jason Hartman: They are, but the function of density and they’ve had a bit of a credit bubble over there as well. I met with a couple different bankers and they said they passed two new laws, actually in Latvia. I’m not sure it applies to all EU countries or anything. And they’re tightening credit as well, which they needed to do, but it’s much less extreme than what’s going on here in the U.S. with the adjustable rate mortgage resets and the – it’s like I can’t believe people just didn’t see this coming. I mean I was talking about this three and a half years ago.
Al Rantel: Well, they went out drinking and they thought the hangover would never come. That’s how people are, Jason. You know that.
Jason Hartman: Yeah, it’s so obvious. I mean this irresponsible lending has – of course, it would lead to this. What a surprise. So it’s ridiculous. You know there are about $27 billion in adjustable rate resets every month now and there’s more on the way, the worst month of all.
Al Rantel: Now what does that mean, an adjustable reset? What do you mean by that?
Jason Hartman: Well, that’s the value of all the adjustable rate mortgages that are resetting every single month, about $27 billion.
Al Rantel: And I’m hearing you say resetting meaning the person’s payment is higher.
Jason Hartman: It’s going up, exactly. And I tell you the worst is yet to come, unfortunately, because next March 2008 will be the worst month of all with $110 billion in resets. And that will start to get better after next March, so we’re –
Al Rantel: Wow.
Jason Hartman: We’re kinda going into the more difficult time, but we’ll see it get a little bit better after that.
Al Rantel: Now one of the numbers that came out, Jason, pardon me, while you were gone, was a 93 percent increase in foreclosures over last year and leading the way was California, and I think Florida, maybe Nevada, these states like that. What about all that?
Jason Hartman: Those are the overvalued, sort of, bubble markets, if you will, and in L.A. County, they’re up more than 600 percent from last year, but I’ve gotta just sort of temper that with saying that compared to the number of homes – I know there are certainly more foreclosures and in my opinion, it’s gonna get worse before it gets better – but compared to the overall number of households, this really isn’t that incredibly extreme. 1,074 homes were foreclosed on in L.A. County. L.A. County’s a big place, Al.
Al Rantel: Oh yeah.
Jason Hartman: What did we have? Eleven –
Al Rantel: Are you kidding? Even if I get a 1,000 homes on a few streets, yeah, seems like. Around the block. Yeah. Yeah, so we have to keep it in perspective, obviously, but if you are – well, there are two angles I wanna cover with you.
Jason Hartman: Sure.
Al Rantel: One angle, if you are an investor, which I know you guys obviously deal with. The other end, you gotta think of every market differently, as you’ve taught us. There’s no national real estate market. And the other angle is if you are a future, you know, someone in the market to buy or you’re a current owner and you’ve got problems. There’s so many different areas we should cover to have people hear what you have to say. Where do you wanna start?
Jason Hartman: Well, I think we should start with Wall Street because the amazing thing that the financial press is talking about a little bit, but in my opinion, not enough, is how incredibly screwed the investors are getting that invested in these bond funds, mortgage-backed securities, and then, of course, hedge funds, which I was never a fan of hedge funds. They were very expensive.
As these loans default, and what’s really amazing about it, is they don’t even know how many of these sort of subprime and even all-pay loans are in these funds, so I just think that the overall investment advice for anybody’s life is never invest in something that you don’t control and you don’t have firsthand knowledge of. Where there’s some fund manager and they’re buying these pools of mortgages that later go into default, and the second lesson is, never be a lender. Always be a borrower.
Al Rantel: Wow, now that’s interesting.
Jason Hartman: Yeah, I know it sounds counter-intuitive.
Al Rantel: Well, you remember that old, old adage we learned? Was it Ben Franklin? “Neither a borrower or a lender be.”
Jason Hartman: Was that Ben or was it Shakespeare?
Al Rantel: Yeah, well, maybe it was Shakespeare. I thought it was Benjamin Franklin. It was one of those old guys back hundreds of years ago, but why do you say – why do you say it that way about being a borrower?
Jason Hartman: Well, because when you borrow, as we’ve talked about before, inflation really benefits you, and see what’s coming now with the Fed coming to the rescue here and lowering the discount rate as they did about a week and a half ago, and I think they’re gonna lower interest rates, too. Well, they don’t control the long term rate, but they influence it, and as we see rates go down, two months ago, Bernanke was saying we’ve gotta watch out for inflation. We’re really not going to pump more liquidity into the system because it causes inflation. Inflation is the result of lots of dollars chasing a limited supply of products or assets.
So when we have that, that creates inflation. Well, there’s a lot more inflation on the way, in my opinion, and when you’re a borrower, inflation pays down your mortgage for you. I mean think about it. If you’ve got $1 million in real estate loans and you’ve got tenants renting the houses from you, they’re basically paying the cost of the loans, right?
Al Rantel: Right.
Jason Hartman: So maybe just for purposes of a simple example, that’s a break-even. But if we have inflation at 4 percent next year, which really it’s quite a bit higher – I’d say it’s around 10 or 12 percent – but just go with 4 percent, then if your loan is interest only, you get your statement and it still says, well, you know, on these six properties you own, you owe a million dollars. But really, the million dollars has devalued through the benefit, the benefit – and I did mean benefit – of inflation where –
Al Rantel: So in other words, I’m paying the lender back with dollars that are worth less money.
Jason Hartman: Yeah, so you –
Al Rantel: Cheaper dollar or whatever you wanna call them.
Jason Hartman: Devalued dollars that are worth less, exactly. You’re right. And so you just got a $40,000.00 reduction on your loan balance through the wonderful benefit of inflation.
Al Rantel: So people who put a ton of cash down when they buy property and say I have equity in my home; I’m paying down the principal, you don’t think they’re doing themselves a favor.
Jason Hartman: I don’t think so at all and that’s because real estate is not a good place to save money or put money. A lot of the sort of less aware advice out there, in my opinion, is saying oh, if only these people put more money down on their homes –
Al Rantel: Right.
Jason Hartman: Well, the problem is not what they put down on their house. The problem is they couldn’t afford the darn house in the first place.
Al Rantel: Right.
Jason Hartman: They should have never bought it and nobody should have ever loaned them the money for it. The borrowers are at fault, the lenders are at fault, and the mortgage industry really doesn’t have any accountability for it. Everybody’s getting paid to make more loans.
Al Rantel: All right, we gotta come back and ask you a few more questions, Jason, so can you hang in here with me? Now that you’re back, we are putting you to full use.
Jason Hartman: Absolutely.
Al Rantel: And I hope your trip was good. You didn’t get jetlag on the way back, did you? You’re okay?
Jason Hartman: I got a little bit, but I’m recovered now.
Al Rantel: Yeah, not as bad as me, I hope. All right, stay on the line. Jason Hartman. By the way, if you wanna find Jason, he’s at www.jasonhartman.com on the internet. That’s easy. www.jasonhartman.com, and he is my financial expert that we use here on the Al Rantel Show. He’s one of the smartest people you’ll ever meet in the financial stuff and we only want the best advice and that’s what we get, so with all this news that’s pent up over the last few weeks, we’re glad Jason’s back from his financial trip to Eastern Europe and he’s gonna give us a little more information when we continue. The Al Rantel Show, Talk Radio, 790 KABC.
[Radio News Break]
Al Rantel: The Al Rantel Show. We have one more quick segment here with Platinum Properties Investor Network’s Jason Hartman, who is the go-to guy for the Al Rantel Show on matters financial. He’s been out of town for a while, so we’ve got a lot of pent up stuff. Therefore, we will not be able to take your calls. There are a lot of people calling in. They want to talk to Jason. We just don’t have time to do that because there’s too much stuff we have to cover for the benefit of the listening audience, so I apologize. You can go to www.jasonhartman.com or – well, I don’t know. Jason, do you want people to call you direct or – I don’t want a million people calling your number, but it’s up to you.
Jason Hartman: We love that kind of stuff, Al. That’s good.
Al Rantel: That’s true. You have no life besides real estate and financial stuff. I keep forgetting that.
Jason Hartman: This is all we do. Yeah, your listeners are welcome to give us a call at 1-800-40JASON. That’s 1-800-40JASON.
Al Rantel: 40JASON.
Jason Hartman: And think of 40 percent return on your investments.
Al Rantel: Well, yeah, we should be so lucky. In fact, let’s get back to where we stood. Now you gave us a broad background about how we got in the mess we’re in and where we are and all that stuff. Now, let’s say that you are either a buyer or – I’m gonna try to cover a lot here in a few minutes – you’re a buyer or a seller here in Southern California where our audience is, or you are a potential investor who may be looking at real estate, and taking into consideration everything that’s currently going on with the credit and the market and the whole thing of where we might be headed. Can you give advice on each one of those two different scenarios?
Jason Hartman: Yeah, one of the major parts of the real estate equation, Al, is what I call the mortgage asset and I know I just talked about the benefits of borrowing and the benefits of inflation, and everybody probably thinks I’m weird – what’s this guy talking about? Well, the mortgage is actually an asset, not a liability, as long as it’s a good mortgage and it’s a good property. So what I’ve been saying for several years in our seminars here is that money is on sale in not one way, which is sort of the obvious way, low interest rates – I mean after 9/11, rates got very low and they got to the lowest point, in some points, in almost five decades, 50 years. So I’m sure when you find something on sale, and I heard you just got a new I-Phone, by the way; congratulations.
Al Rantel: Oh yes, I love that thing.
Jason Hartman: Yeah, I want one of those.
Al Rantel: I’m gonna get you into one of those, Jason.
Jason Hartman: I need to. But when something is on sale – and Apple never goes on sale – when something’s on sale, what do you do? You stock up, right? Well, money has been on sale at historically low rates and so people have been stocking up, and as long as they attach that money, those mortgages, to the right properties that made sense the day they bought them and they weren’t speculating or gambling, depending on future appreciation. See, we consider appreciation to be the icing on the cake. Real estate should work without any extraordinary happening, so the investment has got to make sense the day you buy it. And of course, in Southern California, it doesn’t make sense right now, but in areas like –
Al Rantel: So you don’t recommend people buy right now here.
Jason Hartman: Not here, no.
Al Rantel: Not here.
Jason Hartman: Yeah, I mean unless you’re doing it as purely a psychological thing.
Al Rantel: Right, we got a new baby and we need a new house and we need a bigger house, right.
Jason Hartman: Yeah, that’s a separate issue and I don’t do metro life, okay?
Al Rantel: Right, right.
Jason Hartman: I do financial help. So the thing that people really should do is if they’re renting now here, they should continue to rent. Rents are quite a bargain here, actually, in comparison to prices and they –
Al Rantel: If you’re trying to sell your house, you’re probably gonna find fewer buyers, right?
Jason Hartman: It’s definitely a challenge right now, but they should use any money that they have to invest in properties all around the country and be well diversified. And then in terms of the advice on selling their house, have it staged, have it looking good, have it priced right and you know, if you believe in it, do something crazy like have it feng shuied.
Al Rantel: Now, if I’m in the – if I’m in the real estate – yeah, right, especially on the west side of it might help you. If I’m in the real estate business or the mortgage business here, I’m probably gonna have some lean times still ahead, yeah?
Jason Hartman: I think so, yes, and so obviously, that’s the time to be careful, be prudent, but you know what I didn’t finish on that point.
Al Rantel: Yeah, go ahead.
Jason Hartman: Money being on sale in two ways. Well, one way, the obvious way, is the low interest rates we’ve had and I think rates will get a little lower, so we’re coming into actually kind of a sweet spot in the midst of this crisis for borrowers because the rates are going to go down a little bit. They’re pumping more liquidity into the system. So that’s good news. But the second way money is on sale is the ability to borrow it in the first place, the ability to qualify easily with low down payments and I completely understand that exactly that thing is what got us into this whole credit bubble or mortgage meltdown that we’re in. But the point is, for prudent, responsible investors, when money is on sale, meaning low rates and ease of obtaining it, and now, it is still historically very easy to qualify for loans.
Al Rantel: Oh, okay, that’s good to hear.
Jason Hartman: Even in this current credit bubble.
Al Rantel: That’s good to hear.
Jason Hartman: It was much tougher. Look at things longer term. It was much tougher in the ‘90s and in the ‘80s.
Al Rantel: Oh, are you kidding? I think I told you in the 1980s when I bought my first house, they wanted all of my income tax returns. They wanted my – went over my credit report with a microscope. It was like you’d think I was buying the Taj Mahal.
Jason Hartman: Yeah, and you had to write – you told me that before and you had to write a lot of explanation letters.
Al Rantel: Yeah, they wanted to ask me a million questions. These loan officers were like Gestapos.
Jason Hartman: Historically, right now, even in the midst of the mortgage meltdown, it is very easy to borrow money, even now.
Al Rantel: And the markets around – go ahead – are the markets around the country that are good, outside of California, continue to be places we’ve talked about?
Jason Hartman: Oh, yeah, yeah, there are phenomenal investments in Georgia, in Texas, in Alabama, in Mississippi, in the Carolinas. The whole Katrina thing has just done incredible things to the rental markets in some of these places. Good for investors, good for landlords, and there are big tax benefits being offered in some of these areas. We have a seminar coming up on that on the GoZone, and we have our regular Creating Wealth seminar here in Newport Beach on Saturday. So if your listeners wanna hear more, they can listen to podcasts on the website.
Al Rantel: And you make the financial stuff really interesting and not boring and dry, and you have a real way about you and I’m still thrilled that you’re part of our show.
Jason Hartman: Well, thank you. Thank you for having me.
Al Rantel: It’s a very, very important topic. People live and die by this stuff and they get themselves into trouble, and if you can help them avoid making a mistake, it’s real money.
Jason Hartman: Yep, it sure is. It sure is.
Al Rantel: So Jason, are you gonna be in town for a while in case emergencies come up, I can get a hold of you?
Jason Hartman: I will be in town for a while and happy to comment on the show, Al.
Al Rantel: All right, Jason Hartman, www.jasonhartman.com or 8 – what did you say?
Jason Hartman: 1-800-40JASON
Al Rantel: 40JASON.
Jason Hartman: Yeah.
Al Rantel: Okay, either way and we’ll talk to you next time you have time.
Jason Hartman: All right. Thanks, Al.
Al Rantel: The Al Rantel Show, KABC.
Jason Hartman: 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: 48 minutes