Fri, 5 May 2017
The market is moving and it seems to be moving in the right direction for real estate investors. The historical average for appreciation for single family homes is ~6% nationwide. If you are already an income property investor, the good news is rents may be pushing upward. Jason’s guest today is the author of the new book, Global Shocks: An Investment Guide for Turbulent Markets. Nick Sargen is Senior VP and Chief Economist at Fort Washington Investment Advisors. He is a former economist at Morgan Guaranty trust, Salomon Brothers, Prudential Insurance and JP Morgan. He shares his insights about how the markets will react to a Trump presidency.
[1:05] President-elect Trump may lead the US with a pro-business stance.
[4:33] Trump is a spender which could lead to higher interest rates.
[5:45] Nick Sargen worries about Trump’s trade issue.
[9:41] Budget deficits do not mean inflation.
[12:08] Trump will be a pro-growth, real estate president.
[15:00] The market is moving with the belief that all of Trump’s policies will promote growth.
[17:50] Diving into the Global Shocks: An Investment Guide to Turbulent Markets book.
[20:24] How to capitalize on a bubble.
[24:08] Financial institutions have led the way during the current stock market rally.
Fri, 28 April 2017
Jason Hartman talks with Kare Anderson about the nuances of human communication. Kare is an Emmy award winning journalist, reporting for such outlets as NBC, Wall Street Journal, Forbes, and the Huffington Post.
Kare's TED Talk on becoming an opportunity makers has over a million views, she's a co-founder of 9 PACs, and author of such books as Mutuality Matters and Moving From Me to We. She's considered an expert on connective behavior.
[2:32] What does connective behavior mean?
[4:49] Simple ways for people to connect include getting specific sooner, showing warmth before competence, sitting sidle and walking.
[7:33] Create a bigger pie when someone is attacking you.
[8:49] Don't let other people determine your behavior, plan your own course first
[9:27] A connective leader has the most clout.
[12:05] Look for something you like about someone and keep it in mind every time you see that person.
[16:28] How do journalists like Kare Anderson get people to open up and provide a fuller, richer story during an interview?
[19:50] How did the Bruce/Caitlyn Jenner and Diane Sawyer handle their roles during the interview?
[25:44] To have a meaningful and accomplished life means being grounded and truly listening to other people.
“Getting specific sooner means giving the important details first.”
Fri, 21 April 2017
AMA 169 - The American Boomberang: How the World's Greatest Turnaround Nation Will Do It Again with Nick Adams
Jason Hartman talks with Nick Adams, founder and Executive Director of FLAG, the Foundation for Liberty and American Greatness. The two take some time to discuss Nick's bestselling book, The American Boomerang: How the World’s Greatest Turnaround Nation Will Do It Again. They also delve into their expectations for Trump's presidency, and Nick explains why he's of the belief that Trump very well might be a great American president for the next 8 years.
[1:51] The American Boomerang details what Nick thinks an American Renaissance needs to actually take place
[3:41] Nick is a proud Trump supporter, and started reading Trump's work when he was 11 and read The Art of the Deal
[7:40] The Tall Poppy Syndrome does not apply in the US.
[12:12] American is considered exceptional in the world culturally, militarily, economicly, and scientifically
[15:31] Consumer confidence needs to improve to ramp up the economy
[16:30] 5 key elements America needs to get an economic boomerang
[20:18] What should we expect in President Trump's 4 years?
Fri, 14 April 2017
AMA 168 - Following Federal Reserve Policy to Improve Your Financial Returns with American College's Dr. Robert Johnson
Jason Hartman talks with Dr. Robert Johnson, President and CEO of the not for profit American College. Dr Johnson has written Invest with the Fed: Maximizing Your Portfolio Performance by Following Federal Reserve Policy, Strategic Value Investing, and the study What to Expect When You’re Electing. The two men investigate market strategies, how one party controlling Congress and the Presidency does to the economy, and how asset classes react to interest rate changes.
[3:08] The reforms the Republican party could bring while controlling two branches of the government
[6:34] Invest with the Fed analyzed how asset and equity classes perform during different interest rate environments.
[9:22] Stock market growth is higher when democratic presidents are serving or when there is political harmony.
[12:00] Long-term perspectives show the economy and the stock market move forward together.
[14:40] The best strategy is a long-term market strategy.
[16:19] Equity real estate investment trusts perform very well during rising rate environments.
[18:14] Will the cost of small business financing go up under a Trump administration?
[21:00] Is this time going to be different?
Fri, 7 April 2017
Jason Hartman talks with James Adams, former Waffle House employee and analyst. His new book, Waffle Street: The Confessions & Rehabilitation of a Financier, tells of his time working on Wall Street during the housing market crash. After exiting the modern version of organized crime that is Wall Street, James got a job at Waffle House. His time there led him to write his book (now movie starring Danny Glover).
James explains the central banking system, the ramifications of printing money, and which major nation the next crisis might wipe out.
[1:25] James' original title for the book
[5:02] While some areas of the book are dramatized, the crisis was on a bigger scale than anyone could imagine.
[6:25] Haphazard underwriting and an improbable US housing decline made many US financial institutions to reassure clients until the crash happened
[9:23] The ripple effects of leverage because of how out of whack rent to home price ratios were
[12:05] James fears the treasury balance sheets of G8 countries could be the cause for another meltdown.
[14:23] Central banks are creating electronic liabilities.
[16:10] What needs to be done to the banks before we can even begin to solve our underlying problems
[21:59] Printing money works until it doesn't
[22:38] Japan has many factors that are working against their long term success
[23:58] Are options on Japanese debt a good idea?
[26:05] The Waffle Street film is trending well on Netflix and is experiencing good distribution.
[27:10] James has another movie and works as a Senior Research Analyst
Fri, 31 March 2017
Jason Hartman and Ed Conard, founding partner of Bain Capital, discuss the current economic situation facing America. Conard is the author of Unintended Consequences: Why Everything You’ve Been Told About the Economy is Wrong, and The Upside of Inequality: How Good Intentions Undermine the Middle Class. The conversation includes discussion on CEO pay, the tech industry, and the impact of current regulations on competition in the marketplace.
[1:28] Ed the tremendous growth Bain Capital was able to achieve while he was there with Mitt Romney
[3:30] Bain Capital offered clients the ability to invest in capital management and management supervision deals
[5:07] Bain Capital also used a higher risk strategy, which allowed them to capitalize on investments in undervalued assets.
[7:21] The Upside of Inequality explores the American workers productivity
[12:18] The US economy is accelerating and the Fortune 400 continues to have turnover, which are both good signs for our country
[14:47] CEO pay may grab headlines, but it may not be quite so outlandish
[19:36] Tech companies pay less taxes and have fewer regulations
[21:22] Profitability in the tech sector continues to grow
[22:23] There's a profitability squeeze in most of the economy
[24:45] Trained talent and risk tolerance are the limiting factors to growth in this new economy.
Fri, 24 March 2017
Jason Hartman and one of his clients, Gary Pinkerton discuss an article from Vox.com called "27 Charts That Will Change How You Think About the American Economy". The reporter of the story notes that productivity, demographics, and inflation have all changed in the US economy in the past few years. The two looking into what it means for real estate investing if people continue working past social security mandated ages, what kinds of work opportunities are available to people, and how Americans spend thrift ways (combined with the lack of real wage growth) have left many unable to purchase a home.
[3:40] How Gary became a fan and follower of Jason
[5:57] Timothy Lee's article on Vox.com, "The 27 Charts that will change how you think about the American economy"
[10:07] The service industry provides a key indicator in regards to the American standard of living
[13:59] Labor force numbers have been on the decline since 2000
[16:30] The main areas of the country that are showing growth are urban
[21:05] Timothy shows inflation-adjusted home prices in chart #19
[26:18] Construction costs have not kept up with housing prices
[30:42] American retirement is no longer a set definition
Fri, 17 March 2017
Jason Hartman talks with Daren Blomquist, Senior VP at ATTOM Data Solutions and the Executive Editor of ATTOM’s award-winning Housing News Report. The two look into the impact our new President, Donald Trump, could have on real estate investing, how he might change the economy, and what sort of regulations (or lack thereof) that might impact our investing future.
[1:43] A Trump presidency's impact on real estate investors and our economy
[5:55] Lack of wage growth has caused affordability issues
[8:46] Housing bubbles tend to be created by lower interest rates
[11:33] Housing prices continue escalating while home ownership has dropped to a 50 year low
[15:43] What impact would repealing Dodd-Frank have?
[19:11] ATTOM’s Housing News Report article explains the phenomenon of big banks running away from the mortgage business
[20:16] October 2016 saw a continued increase in foreclosure activity
[24:29] The promised $1 trillion infrastructure investment will help real estate investors.
[25:36] Get the Housing News Report free for a year by emailing firstname.lastname@example.org and mention "Creating Wealth"
Sat, 11 March 2017
AMA 163 - How Investment Opportunities in Real Estate Are Changing in Today's Financial Environment with Andrew Wright
Jason Hartman talks with Andrew Wright, CEO and Managing Partner at the commercial real estate firm Franklin Street. Andrew has been involved in over $1 billion in real estate and finance transactions, as well as more than $800 million in debt resolution since 2009.
Jason and Andrew discuss how commercial real estate has had to adjust to the changing social dynamics, and where you might best be investing your money today.
[1:20] What to expect from our first real estate president
[4:44] Retail centers have had to substantially change thanks to the internet
[8:16] Warehouse and delivery industries have seen a boon because of the internet bringing in things like same day shipping
[12:39] Andrew gives his opinion on how much more room we might have to grow
[16:48] Andrew dissects the current cap rate availability for commercial real estate
[18:53] The 1 investment Andrew loves today
Fri, 24 February 2017
Jason Hartman talks with Ed Martin, former President of The Eagle Forum and former Chairman of the Missouri Republican Party, about the conservative case for Donald Trump.
Jason and Ed discuss the vision they believe Trump has, the willingness to do what's right for America, how America can fix our trade issue, and the dangers of the establishment like the Clintons represent.
[1:45] Whether we need a conservative case for Trump when many of his former stances seem liberal
[4:32] Where Ed stands on free trade
[8:47] The difficulty of creating a level playing field between nations when discussing trade
[13:10] Why we need someone to come in and shake things up
[16:40] The Clintons as the status quo