Holistic Survival
Welcome! If this is your first time visiting Jason Hartman's website, please read this page to learn more about what we do here. You may also be interested in receiving updates from our podcast via RSS or via email if you prefer. If you have any questions about financial survival feel free to contact us anytime! Thanks!

The Impact of Real Estate Technology on Investing

Bookmark and Share

On this Flash Back Friday originally published in April 2016 as episode 662, Jason examines a news article about a Social Media Conference. he talks about new technologies in real estate that affect pricing. Then he discusses employment in the US and the average wage of CEOs in major companies.

Jason Hartman 0:00
Welcome to this week’s edition of flashback Friday, your opportunity to get some good review by listening to episodes from the past that Jason is hand picked to help you today in the present, and propel you into the future. Enjoy.

Announcer 0:15
Welcome to the creating wealth show with Jason Hartman. You’re about to learn a new slant on investing some exciting techniques and fresh new approaches to the world’s most historically proven asset class that will enable you to create more wealth and freedom than you ever thought possible. Jason is a genuine self made multi millionaire who’s actually been there and done it. He’s a successful investor, lender, developer and entrepreneur who’s owned properties in 11 states had hundreds of tenants and been involved in thousands of real estate transactions. This program will help you follow in Jason’s footsteps on the road to your financial independence day. You really can do it on now. Here’s your host Jason Hartman with the complete solution for real estate investors.

Jason Hartman 1:05
Welcome to the creating wealth show. This is your host Jason Hartman episode number 662. And depending on how long winded I am today, we will hear from George Gilder again, who’s back on the show for a second time. Not a flashback Friday. I know we had him on a flashback couple of weeks ago, but I thought we’d get his new episode on. And if we don’t get it on today, because I keep rambling sometimes. We will get him on next week. I think his new book is entitled The scandal of money. Really interesting topic. He’s a super interesting guy, a true intellectual, and really fascinating. Anyway, greetings from beautiful San Diego, California, San Diego in the Socialist Republic of California. It has just been gorgeous here. I’m out here for a conference on social media and Let me tell you folks, the one big theme is probably another one of those big world game changers. The overriding theme of this conference with all these social media professionals here, thinking about better ways that they can market their companies and market their businesses and so on and so forth. The one overriding omnipresent theme at this event is, drumroll please. Live video, live video. So Facebook recently just launched what they call Facebook live, where people can directly post live videos to their newsfeed. And this is the world in which we live where everybody is a marketer. Everyone is a self styled publicist, even if they’re not in the business of doing so. We’re all doing this. We’re all publishers now. It’s a it’s an amazing time to be alive. I don’t know, not always so amazing. But for better or worse, that’s the situation in which we find ourselves. By the way, I’m kind of wondering as I’m watching the civil scope, record my voice. I’m wondering how this new little portable microphone I’m using sounds. I hope it sounds good. But if not, next episode, I’ll be back in the studio and I’ll sound better. Okay. So, yeah, we’re all these self styled publicist and PR firms nowadays, and everybody’s doing this marketing. But here’s what’s interesting about it. Now, you may recall that Facebook purchased Oculus Rift, Oculus Rift, right. That’s what it’s called. We had the I believe, the founder or the CEO of oculus on the show. And I think we’re going to re air that interview, because it’s sort of more interesting in today’s context. Well, think about this. This is this is the goal of what’s happening in all of this social media, not just Facebook. And this is the game changer and it means something to us as real estate investors. There’s always a connection here. I know when you listen to Jason Hartman it may be a winding road. It takes a while for me to get there. I totally get it.

Jason Hartman 4:17
I’m already sensing that we may not have time to air the George interview or a George Gilder interview. will dry. Okay. So what does this mean? Well, Oculus Rift is this virtual reality company that makes these incredibly lifelike virtual reality goggles, okay. What they do is, they connect people in things through space and time. I guess that’s an accurate way to say it through space and time, virtually. Well, what’s amazing here and this is the Facebook. What was it the f8 conference, just about About two weeks ago, they demonstrated this and had an amazing demo on it. And think about the future of social media. Think about the future of meetings and conferences, and touring properties and how geography, as I’ve always said, is less meaningful than it’s ever been in human history, and so on and so forth. So you bring people and think about dating,

Jason Hartman 5:28
and mating, and match.com, and Tinder and Bumble, and all of these dating sites out there. Talk about a game changer for all of them, right? It’s a valid argument, by the way, whether social media is really a connecting force or an isolating force. By the way, if you want to see a great little video on that, I believe it’s entitled look up. Just Just search that on your internet browser. You’ll see it on YouTube or Vimeo or all these video sites, I believe it’s just called look up and it’s about social media really. We think it connects us but it really isolates us. Okay, so you know, that’s another discussion another tangent last, we risk another tangent here. But think about what this means to real estate. If geography is going to be less meaningful than it’s ever been in human history with a self driving car, and virtual reality and just live video, where people can push one button on their smartphone, and instantly go live through Periscope, Meerkat, Facebook, live, Snapchat, any of these other services, right, I blab that’s another one blab and there’s probably a dozen other I failed to mention. Okay. But they can do this. They can connect immediately with their friends. They can be at an event, a conference, a concert, maybe our upcoming Jekyll Island. event for the venture Alliance mastermind group. They can be there they can be at our upcoming Ohio property tour. And they can broadcast live and give their friends, their followers, their audience. And everybody has an audience or a tribe nowadays, you know, Seth Godin, his book from a couple of years ago called tribes. Very interesting. It’s just this thing that compresses geography. Another thing that does it, but that’s just with video now, but when when the virtual reality really makes it to prime time, how important is it that you live in the prime area that you pay a fortune to live in Los Angeles, or New York City or Miami? Because the world can be there. It’s accessible to you so much more. Easily than it’s ever been in all human history. And I say this has a huge impact on real estate prices. It’s the three cardinal rules, as we all know, have always been location, location, location. And I say, there is going to be some real pressure on those three cardinal rules. You know, everything is the way it’s always been, until it’s not. I think I just made that up. Everything is the way it’s always been until it’s not. And these disruptive technologies, like the autonomous vehicle, the self driving car, like virtual reality, and to a lesser degree, like this live video, that is the theme of this conference, are putting a lot of pressure on those three cardinal rules, location, location, location. So just something to think about. I had that thought as I’m sitting in the center. at this conference and learning about that, a couple interesting articles if if not pessimistic here, you hear this. Folks, what is that? Especially for you younger listeners. That my friends is called a newspaper. Yes.

Jason Hartman 9:21
Sounds pretty weird, doesn’t it? Yeah. It’s not on an iPad. It’s not on a Kindle. It’s an actual newspaper. USA Today money section yesterday, Americans still don’t see vibrant labor market. Many new jobs lack benefits, job security or growth potential. Let me just share a little bit of this article with you. It’s by Paul Davidson writing for USA Today. He says, By most measures the US labor market is back to its pre recession baseline. But many Americans are still aren’t feeling it despite remarkably study. payroll growth in the past five years in near normal 5% unemployment rate. Okay, so what that of course means is that a 5% unemployment rate basically means full employment, because it means that everybody that wants a job has got a job. At least it’s available to them. You know, 5% is essentially zero unemployment by most economists. Eyes, right. And so it goes on to say many workers are stuck in jobs that aren’t providing the salaries, advancement opportunities, and standard of living they seek. According to a Wells Fargo, USA Today surveyed, quote, people are seeing more jobs on quote, Wells Fargo economist, Mark vinner says they quote, we just aren’t creating many good jobs. They don’t pay very well, and many don’t have benefits. Unquote. Many of the new positions are part two Or freelance gigs? He says, and they don’t come with benefits or job security. And he says there’s a significant amount of under employment if you’re working in a job you’re overqualified for. And you know what? I’ve been beating this drum for years, this recovery, I still believe it’s a myth. Now I know that you may sense a contradiction in my thinking and listen, I sense it myself. Okay. It’s an amazing time to be alive. And at the same time, we’ve got this real and very significant problem. And I got to tell you being a single person in my own life, I can just see anecdotally that it’s this way, because the when I used to date years ago, had corporate jobs. Okay. Now granted, maybe I’ve lowered my standards.

Jason Hartman 12:04
I don’t know. It’s arguable. What is that song? If you can’t be with the one you love them love the one you’re with, right? So maybe it’s just me, maybe this is not true. But anecdotally, I want you to look around in your own life, in your own peer groups. In Think about this. You know, I remember I used to have a girlfriend Leslie, she was a contract negotiator for a healthcare company. And then I had another one who was a chemical engineer with Dow Chemical. And nowadays, it’s like, oh, yeah, I’m starting my own website. And, you know, I got a little side business over here, yoga instructor Freelancer working on elands or, you know, whatever they’re called those various websites, we, I mean, we use some of these, okay, this is the oDesk or Upwork or guru.com, or any of these websites, right. And this is thing if you do not have the same environment now, maybe this is a good thing. Maybe this helps people think in a more entrepreneurial fashion. Maybe that’s good overall. I don’t know. I’m just being with the question. But if you want to say this is a recovery, these $70,000 your nice corporate jobs with benefits and career track, I don’t see him. I they are just not very prevalent. And the ones that are out there are held by older people who have been in those positions for a long time and by older Listen, it’s not that much older, but I’m talking 45 to 55 year olds, okay. They’re not 20 somethings, these are not the jobs millennials have. Now, granted, some do I know. But by and large, I just don’t see it as The trend. So is this problematic? Probably, we’ll see. It’s, it cuts both ways. And that’s the reason. Just like you have to segment the real estate market. Okay, so many people talk about, well, how’s the real estate market? Only an idiot could answer that question, because the answer would have to be idiotic. You can’t say how’s the real estate market? You can’t answer that question correctly. Because you have to segment it, you have to segment it by price category, you have to segment it by geography, all real estate is local. And we’ve you’ve heard me say all of this stuff a zillion times. So you have to slice and dice things up. You have to slice and dice, the way the economy works, and all of these different things. Okay, so it is more complicated than meets the eye. It’s more complicated than all of these presidential candidates who mostly suck. It’s more complicated and they say, so there you go. We’ll keep looking at it. But interestingly, the next article here in USA Today by Mark Krantz says $15 an hour, try $9,000 or more for these CEOs. And it goes on to say, restaurant and retail workers are pushing for a national minimum wage of $15 per hour. But some CEOs in the industry have landed pay packages worth $9,000 an hour or more for retail and restaurant CEOs are more than $9,000 an hour in the last fiscal year. According to USA Today, analysis of data from s&p global market intelligence. The analysis includes the 76 restaurant and retail companies in the s&p 1500 Oh, not the 500 the 1500 Did I know there was an s&p 1500 and

Jason Hartman 16:05
I’m gonna kind of plead ignorance on that. I don’t know if I knew that index existed but whatever. Okay, your host is not doing all of this homework here. I guess I’m in trouble. But I know some other things and I’ll be glad to share them with you. They’re good. Okay, so keep listening. Don’t shut me off yet. Okay, so that disclose their fiscal 2015 executive pay is based on a 40 Hour Workweek. The highest paid chiefs in these industries include Larry merleau of CVS health, who earned $13,914 per hour. Pretty nice gig if you can get it hillarie Leslie Wexner of Victoria’s Secret parent l brands who brought in $13,062 per hour and there’s Howard Schultz of Starbucks who made $9,659 an hour and by Way, Starbucks has a lot of really unhealthy stuff. Folks, help me start a trend here. I look at I’m a Starbucks customer. I like Starbucks. I don’t mean to pick on them. I’m just saying we got to balance the debate here. Maybe we should get Howard on the show. I would love to interview Howard Schultz. Good interview, very successful guy. Obviously. You gotta look at the nutritional information for the stuff you’re buying at Starbucks. Why is everybody pick on McDonald’s all the time? McDonald’s is junk. Of course. We know that but they’re trying to change and keep up with the times. But nobody, it seems I never hear anybody picking on Starbucks. Do you know what that coffee cake has in it? Do you know what those drinks those frappuccinos you were those things are disgusting. They’re like diabetes, a couple of diabetes. That’s what you’re ordering. Okay. Be really careful when you get your next caramel macchiato. I mean, these drinks are insanely bad for you. They have so much sugar. They have so many calories. literally one Starbucks drink is like one quarter of the calorie intake you should have in a day. It’s insane. I just drink regular coffee and iced coffee. That’s all I I drink there or americanos. But these these, I used to drink those frappuccinos and all that stuff ba and I really just go on the web and search the Starbucks nutritional information, and you’ll be amazed at the food and the drinks and the it’s just really bad folks. I’m telling you, listen, I’m going to help you make a lot of money in real estate and get a good return on your investment. I want you to live a long time to enjoy it. And I’ve even got a show for that. The longevity and biohacking show and you should listen to that. So go on your podcast platform and make sure you subscribe to of course this show if you’re not a subscriber, subscribe it rate and review it we’d appreciate your reviews. We love you for that. So thank you especially if they’re nice reviews. We like those the And know that most podcasters out there, their reviews are frickin fake, fake,

Jason Hartman 19:07
fake fake reviews. They’re about as fake as the nutrition you get at Starbucks. Okay, I’ll stop picking on Starbucks. I just want to point that out. Okay. All right, so and then there’s Douglas McMillan of Walmart who received $9,323 an hour. It ain’t bad. So, these CEOs pay packages coming mid moves by states, such as New York and California to boost the minimum wage to $15 an hour. The minimum wage increase will affect a large pool of workers that include retail and restaurant workers, such as store clerks, cooks and waiters, the 76 restaurant and retail company CEOs who have 2015 pay reported, so earn a medium Oh my god, this is okay. I misspoke there. Amen. median of get this 20 $703 per hour. So that was the median pay about $5.6 million annually. And that is, of course insane. So what do we do? Well, Bernie Sanders, his idiotic solution would be, we should just pay everybody $30 an hour and then everything will just be okay. Bernie, you’re a fool. Of course, probably a well intentioned one but a fool nonetheless. Because who in their right mind I mean, think about it. A company has certain stakeholders, the shareholders or investors in the company, the employees and staff and you can divide that into the worker bees and the C suite the execs and the Board of Directors right and divide those up the segment them and then of course the customers. Do you really think these incredibly generous altruistic CEOs are going to take a pay cut, if they have to raise everybody else’s wages.

Jason Hartman 21:10
Do Bernie Sanders supporters, are they really that nonsensical and foolish? Does Bernie himself believe that? Does Nancy Pelosi or brock obama do they believe that? I mean, this is insane that you think you can legislate this kind of stuff? Because guess what? Companies like properties owned by real estate investors are passed through entities. Simply put, yo yo, you have forced them to raise the wages. They’re either going to automate with robotics, or they’re simply going to raise the prices to the customers or do something that makes sure they can pay for that. They’re going to go offshore, they’re going to find ways to cut their taxes. and reduce revenue to the government. It just doesn’t work, folks. I’m not saying I have the solution, but I know what doesn’t work. And this does not work. Another little thing in here, it says, just a few more years. And there’s one of these little means it says, All those who change their plan retiring year 77% expect to retire at a later age, then they plan to just one year ago, they’re delaying retirement. Okay, so, this again, good and bad. It’s bad because we’re not in a real recovery. You could argue, and we talked about that already. But also, it shows that I mean, really, folks, the retirement age 65 Are you kidding? That’s absurd. I mean, you should be totally vibrant. Well into 75 or 80 years old nowadays. And be wanting to work. Now maybe you don’t want to work as much, maybe you want to retire a little bit. But full retirement is probably an early death sentence. So, if you’re listening to the show, because you want to make a fortune, and make a great return on real estate, I’m still gonna try and talk you out of retirement. Now you might live a more lavish lifestyle, I’ll talk you into that one. Take lavish vacations, buy nice things, do great charity work and philanthropy work, maybe start a business of your own and have the freedom to do that. Maybe start a cause, but you ought to be engaged in something because retirement. probably not a good idea. According to Hartman. That’s just my thought I could be wrong. Okay, so we’ve got the Ohio property tour coming up. Let me just look right now and see if that is on the website here at Jason Hartman calm Brittany is the tour on the website now. It’s up there. Yes, it is. Cincinnati, Ohio investment property tour plus education. Now we’ve got an early bird price, only $247. That price will probably be about $400 relatively soon. So make sure you sign up. Boy, these properties. I tell you these properties if you want really good cash flow market, these are phenomenal. And we are planning to have dinner at our local market specialists house. Now, this house is 5800 square feet. And it was acquired for Let me see if I’m remembering this correctly. I think it was $187,000. I was told was that the right number? It’s amazing. I got a bunch of photos of it and our Saturday night dinner. So here’s the schedule for these tours. By the way, this one remember we mix them sometimes Sometimes we do Jason Hartman university or Jay Chou, where we do math and learn how to analyze investments more in depth. And sometimes we do creating wealth. These are two different core educational events that we have. At this one we’re doing creating wealth. creating wealth is our most popular seminar. And we will do this Saturday morning. And then we will get on the we will get on the bus will go have lunch, and we’ll tour properties. We will attempt to do the customary stop at Starbucks. That I just panned and we’ll order healthy drinks now hopefully, and I will buy everybody, Starbucks and those poor souls that get in line behind us. Well, you know, that’s just the way it goes sometimes sorry. I usually buy them their coffee do because they had to wait so long. We’ll do that we’ll tour some great properties. And then we plan to come back to the hotel have the bus drop us off there will give everybody about an hour or so to freshen up, maybe change their clothes, lay down for a moment rest. And then we will go over to our local market specialist house we will have a glorious dinner there will have some drinks, wives and fun. And then we will retire for the evening. I know some of you will probably go out and hit the bar scene. The next morning, we will have in we will finish up the creating wealth seminar. And we will have more announcements and talks from local people. We always try to line up the local insurance person. We try to line up different speakers property management, all of this he had to meet the team press the flesh and get a first hand experience of the market we always try to line up a situation where you can look at properties in three different stages of development. Number one, pre rehab or Nothing’s been done to them. Number two in the middle of a rehab so you can see what’s going on and how that construction process is working. And then number three, completed and rent ready. So you’ll really like this market. We have a lot of clients who have purchased here, and they’re reporting very good experiences. We’ve got a good team here. You may have met this team, if you attended meet the Masters, the last couple of years they were there. So go to Jason Hartman calm and register for that. The dates are June 4 And fifth, June 4 and fifth and a month before that, of course, just coming up here in a couple of weeks. Jekyll Island with a venture Alliance, real estate mastermind group, Jekyll Island, GA, the birthplace of the Federal Reserve, the Federal Reserve about as federal as Federal Express.

Jason Hartman 27:53
Yes, we’re staying at the exact same hotel and having our meeting in the same conference room. They formed the Federal Reserve. It’s a gorgeous resort. Go absolutely love it. Go to venture Alliance mastermind for a video on that and some additional information, inquire, email us through the website at Jason Hartman calm or contact one of our investment counselors you’re working with about venture Alliance, we’d love to have you there, we’re going to have a fantastic, very historical, beautiful event will do hot seats will help you define your investment goals help you solve investing problems in business problems do and it’s just going to be a fantastic event. So those are our next two events coming up. And we hope you’ll join us for those. And again, Mr. long winded Hartman, our host, he went long so George Gilder coming up next week. Okay, thanks again for listening and happy investing to everybody.

Announcer 28:51
I’ve never really thought of Jason is subversive, but I just found out that’s what Wall Street considers him to be. Really now How was that? possible at all, simple. Wall Street believes that real estate investors are dangerous to their schemes. Because the dirty truth about income property is that it actually works in real life. I know I mean, how many people do you know not including insiders who created wealth with stocks, bonds and mutual funds? those options are for people who only want to pretend they’re getting ahead. Stocks and other non direct traded assets are a losing game for most people. The typical scenario is you make a little you lose a little and spin your wheels for decades. That’s because the corporate crooks running the stock and bond investing game will always see to it that they win. This means unless you’re one of them, you will not win. And unluckily for wall street. Jason has a unique ability to make the everyday person understand investing the way it should be. He shows them a world where anything less than than a 26% annual return is disappointing. Yep. And that’s why Jason offers a one book set on creating wealth that comes with 20 digital download audios. He shows us how we can be excited about these scary times and exploit the incredible opportunities this present economy has afforded us. We can pick local markets, untouched by the economic downturn, exploit packaged commodities investing, and achieve exceptional returns safely and securely.

Announcer 30:24
I like how he teaches you how to protect the equity

Announcer 30:26
in your home before it disappears and how to outsource your debt obligations to the government. And this set of advanced strategies for wealth creation is being offered for only $197 to get your creating wealth encyclopedia book one complete with over 20 hours of audio go to Jason hartman.com forward slash store. 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. This show is produced by the Hartman media company All rights reserved for distribution or publication rights and media interviews, please visit www dot Hartman media.com or email media at Hartman media.com. Nothing on this show should be considered specific personal or professional advice. Please consult an appropriate tax legal real estate or business professional for individualized advice. opinions of guests are their own and the host is acting on behalf of Platinum properties investor network, Inc, exclusively.