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Wealth Acceleration through Leverage with Donald Trump

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Jason Hartman examines the idea of debt, both good and bad. He discusses prudent use of leverage and borrowing money to accelerate wealth and to reduce risk. While looking at these perspectives he goes into Donald Trump’s troubles in the 1990s.

Jason Hartman 1:21
Welcome to creating wealth. This is your host, Jason Hartman and we are here for show number 42. Thank you again so much for listening. We are getting quite popular and we really appreciate your listenership and hope that the advice is good for you. And we’ll continue to try and bring you the highest quality content, innovative ideas, fresh ideas, and fresh perspectives on the real estate market. Today, I’d like to talk mostly about debt. And we’ll have a little clip here talking about Donald Trump, who I think you’ll be interested in his philosophy on debt and hearing more about it. But a couple things before we get into our core content today. The first one is an interesting thing that Sara, one of our investment counselors and also someone who does some of our rental coordination for us and for our clients gave me that I thought was kind of a good little thing to start off with. It has been a wild ride this week with the economy and Wall Street and the financial markets. And it’s just it’s amazing what’s going on. I think the stock market is, is really nothing more than a gambling casino for business people. So glad that I don’t determine my mood, like some people do by what’s going on in the financial press and what’s going on with the stock markets around the world on any given day because it is a rollercoaster. And if you listened to the last podcast, you know how I feel about group investing, and investing in pools or investing in anybody else’s deal, or pooling money together. It’s just a bad deal. But suffice it to say that there is a lot of fear out there nowadays. And again, it reminds me of that greatness. quote by one of the world’s most renowned investors, certainly, and that is Warren Buffett, when he said be greedy when everybody else is fearful, and be fearful when everybody else is greedy. And I tell you now, when there is a lot of fear out there, in my opinion, is the time to get real, real greedy, and start accumulating hard assets, hard assets that are built from commodities. See, if you think about it in 2006. In the United States, we broke the 300 million population mark. Last year in 2007. We added over 3 million people to the US population, 3 million people that are counted 3 million that we know of, not including various forms of illegal immigration. So the population of a planet increase. If you look on the front page of our website at Jason Hartman calm, you’ll see that world population clock, and it is just incredible. go spend an hour on our website, listening to podcasts downloading videos, And watching some of the great educational content, reading articles, whatever it is, and just write down the world population when you visit the website. And then write down the world population when you leave the website. And you will see that there is good reason to be very, very bullish on packaged commodity investing, which we will talk about in a future podcast in great detail. But all of these commodities that it takes to build these houses and build the commercial real estate that we’re helping people invest in, they are going up in value. So be greedy when everybody else is fearful. So when Sarah handed me this little quote yesterday, I thought it was interesting, because it’s about fear. And it’s from a calendar that she has on her desk that is based on the secret which we talked about a few podcasts ago. And it says that fear is the most debilitating emotion there is. And each and every one of us can live a life without Fear. The key to absolute freedom and joy for each and every one of us is to let go of fear. When you understand that fear puts you on a frequency of attracting more fearful events and circumstances into your life, you will understand how important it is to shift yourself. People are in fear of being late of losing their job of paying their bills of getting sick, the list goes on and on. But the fear of those things is actually summoning more of them to us. The law of attraction is impersonal. And whatever we focus on with feeling is bringing more of it to us. When fearful thoughts comes stamp them out immediately. Send them on their way and replace them with anything that makes you feel good. Remember all of this stuff about the law of attraction and the older philosophies of this way. therapy way back to biblical times, or James Allen or all the stuff I talked about on podcast number 40. About this is we’re just bringing more of it into our lives. So we need to focus on the opportunities. The Chinese, they have that symbol for crisis, which is identical to the symbol for opportunity. And it means crisis is opportunity riding the dangerous wind. That’s the literal translation. So every fear, every piece of bad news has a flip side of opportunity. And there is some market somewhere or some products somewhere or someone is creating wealth from it. Okay. Also, I think just last Sunday, I believe it was, I got my first piece of hate mail.

Jason Hartman 6:48
And I kind of like it when this happens, because it really makes me think I like people who challenged my ideas. So I want to thank Jenny Jones, who I think sent me sort of a smile email. Which was kind of a little hate mail piece I thought I’d share with you here. And I guess when you’re getting on someone’s nerves out there, it means that you’re doing a good job right? in some way. Well, she says, Hey, Jason, here’s a good story for you to read to bring you back to reality about real life, hope it’s affecting you too. And when you click on the story, the link that she sent, it’s about what’s going on in real estate and how tough it is for most people out there. And certainly, I’m sorry to see this the real estate industry as a very dysfunctional industry. It’s massively overstaffed. And now we have a market in many areas around the country that is slowing down. And so this is a change and it will be painful for some people. And remember, the key to minimizing this kind of pain in anybody’s life is to adapt quickly and to make changes quickly and to be nimble and agile when change comes in to expect Be prepared for it in advance. I like to say expect the best, but be prepared for the worst. So anyway, this little sort of snide email that Jenny sent, I replied back to by saying, Hi, Jenny. That’s all true. And many of the bubble markets like California, Florida, and many others, we saw this coming years ago, and that’s why we never recommended these overvalued places. As bad as it is in the bubble real estate markets. It’s actually much worse in the mortgage business. We are doing business in 36 markets around the USA. And these markets make sense. We’re getting fantastic returns for our clients very conservatively. Last year was one of our best years ever. Actually, it wasn’t one of our best years. It was our best year ever, with a 50% increase in revenue to our company. So apparently, we seem to be doing something right here. At least that’s what our clients are telling us. It goes to show how there is no such thing as a national housing market. But rather hundreds of local markets in a country as large and diverse as the United States. Talking about real estate nationally is like talking about the weather as if it is the same in LA, New York, Miami and Chicago all at the same time. Real Estate like weather is local. Are you listening to my podcasts? I asked her. I don’t know. I didn’t get a reply back to this email. And it’s been a week now. There’s a lot of great free info there. And if you’re a listener, check it out at Jason Hartman, calm we have listeners in 26 countries. And we’re getting lots of great feedback and much appreciation for our honest outlook on the financial markets. Let me know what you think and happy investing. So we’ll see if I hear back from my little piece of snide hate mail there.

Jason Hartman 9:48
Okay, last show. We talked about how these overpaid greedy people on Wall Street are just taken all the money off the top and leaving very little for us investors To share, and there was an article here in the May 21 2000 issue of Forbes magazine. I love Forbes magazine. It’s great magazine. But you know, it’s largely all about the lousy stock market. And it just talks about great while nobody’s watching, and it talks about how people are just taking money off the top, and it talks about overpaid bosses. This is unbelievable. This one CEO, his tenure as chief was 39 years. average total return was 6.4% to investors. The last six year return was 4.5%. But the average compensation over the six years was $10.9 million and paid $12.6 million in 2006, including 1.3 million in annual bonuses while the stock was down 17% in the past year. Isn’t that ridiculous? And then It talks about the next one. The CEO of Walmart Lee Scott Jr. was paid $9 million in 2006. The retailer’s stock has been even more money in 2001. But here are the stats right? Seven years is chief during his tenure, the stock was down 3.4% in the last six years it was up point 1% only when the average compensation over this 10 year was $9.1 million. I think next one Amgen, Kevin share stock of the drug company firm slumped 18% in the past year, but share earnings $7 million, including $250,000 for a company jet. It’s just on and on Eli Lilly Same deal. And by the way, they’re based in Indianapolis one of our markets, which we think is a great market but again, I wouldn’t want to be investing in their stock because the people making all the money are the insiders, the people in the executive suite Okay, let’s talk about debt a little bit here and let’s hear how Donald Trump views debt and how we should too. In my seminars. I talk about a wall street journal article that is quite interesting to me. And this is an article in the Wall Street Journal, and it is titled stocks versus other investments and the date of the article so that you can reference it is September 30 1996. So it’s a pretty old article, and it is prior to the major real estate booms. And the article says stocks versus other investments average annual rates of return from 1926 to 1992. Says Dow Industrials have been a wise investment decision. Now, the reason I like this article so much everybody is because it is a very long sample. A lot of the people that argue the merits of investing in stocks are bonds versus real estate will argue that I am only picking a favorable time period to take the sample. Well, first of all, I didn’t pick this time period, the Wall Street Journal did. And certainly the people that advertise in the Wall Street Journal are largely companies that recommend Wall Street investments, whether it be Merrill Lynch or fidelity or tiro price or Janis or any of these mutual fund companies or bond companies, whatever they are Ameriprise all the rest, right? largely very few, very little of the Wall Street Journal’s revenue comes from real estate advertising. Okay. So, in this article, says Dow Industrials wise investment decision, but really, are they wise? Because what they say is that from 1926 to 1992, a very long sample, what did we have in this timeframe? We had a great depression. We had several wars, we had a lot of things happen in the US economy and the global economy during that very long time period. And it says that over this long time period, small cap stocks performed at an average of 12.5% while real estate nationwide performed an average of 11.1%. And the Dow Jones Industrial Average was an even 10%. Now, by the way, just for comparison, bonds, averaged 5.2% treasury bills 3.7% and inflation 3.1% over this very long period. Now, I won’t get into the inflation subject because we’ve talked about it on many past shows, but you know, my feelings about how the inflation numbers are manipulated. Here’s the problem, everybody, that even if you take what the Wall Street Journal says, It says Dow Jones have been a wise investment decision you would have done better in real estate. But the reality is that nobody who is investing the right way in real estate ever pays cash for real estate. So if you put 20% down to acquire a property, that means you are financing 80% of it, and you have a five to one leverage ratio. The real estate massively outperforms all the other investments. Because what happens you take that 11.1% that is the Wall Street Journal’s number, and you multiply it times 520 percent down 80% financing gives you a five to one leverage ratio. That means that the comparison now looks like this. Those small cap stocks that were number one before are still giving you 12.5% over this very long time period. But real estate is now giving you 55 Point 5%. That’s an annualized return on investment. Now you need to understand that is simplified, because it doesn’t include buying the property and the closing cost on the way in. It doesn’t include selling the property and the closing costs on the way out. And it doesn’t include the cash flow, or the tax benefits. Now, closing costs in and out, you have commissions when you trade stocks, and bonds, same deal. But on real estate, the closing costs are a little bit high. So of course, if you flip properties, you’re going to eat up your profits with closing costs. So don’t flip properties. We’ve talked about that on past shows. But the tax benefits real estate is the most tax favored asset in America bar none. So the tax benefits will make you a whole lot more money As long as you qualify for all them. And there are ways to do that. Listen to that on prior shows. But the real estate just dramatically outperforms. So assuming you have a slight negative cash flow on the real estate, you might chip away at your 55.5% return and bring it down to 40%. So what? Okay, and if you sell the property, you might chip away at your return as well. But if you sell the stock, you’re going to have to pay capital gains. There’s no 1031 tax deferred exchange on stocks. Real Estate has that benefit, but stocks don’t. So you’re going to have another benefit there. Real estate is a much more favored asset. Okay. 55.5% with real estate, and a five to one leverage ratio. What about the Dow Jones? Still 10% Okay, you could buy the stocks on margin. You could get a 50% margin on your stocks. But guess who pays the interest you do on real estate, your tenant pays the interest for you because so far I have never and I don’t know anyone else who has rented out their stocks so that the renter will pay the cost of the debt. All right. And then the other investments, same performance, you get the idea. Real Estate blows it away. Okay, here’s the return with 10%. down, and a 90% mortgage. Same numbers quoted in the Wall Street Journal, September 30 1996. Now you have small cap stocks at 12.5% Dow Jones at 10% bonds at 5.2 treasury bills at 3.7 inflation of 3.1 over this very long period. Real Estate which was 11.1% 10% down gives you a 10 to one leverage ratio. Now you have a simplified annual return on investment of a whopping 111% you multiply times 10 but if you use more leverage you We’ll have more negative cash flow, fine and dandy. chip away a little bit at that. So Fine. Listen to our show on deferred down payment. And you will see in detail how we calculate this. But what if that negative cash flow or that deferred down payment brings your return down to 70% 80%? I don’t know. 40%. So what you still have tax benefits, the real estate just massively outperforms any other investment. Remember, when you buy a property, you have a choice. You either put the money into the property or you put it in the bank, I say that the property is the worst bank. Real estate is a lousy bank, it does not perform well as a savings vehicle or as a cash flow vehicle. It performs well as a lien, highly leveraged vehicle for so many reasons. Now many of you are probably readers of Robert Kiyosaki his books. He’s the author who wrote the Rich Dad Poor Dad series. And you know what, he’s a terrific educator. I like his material a lot. The last one of his books that I read is called who took my money. And in many parts of it, he’s kind of bashing the financial services industry. I agree with him. And he compares real estate, over 10 years $10,000 invested in a single family home, versus $10,000 invested in s&p 500 index fund. Well, if you put $10,000 in 1992, in the s&p 500 by 2002, you would have back $17,400 approximately, but if you put that $10,000 into a piece of property, you could buy $100,000 property rented out, let your tenant pay most of the carrying costs of the debt, the property taxes, the insurance, everything, all right. And over the years, you’re going to raise your rent every year. So this is a simplified example again, like the other example was, but at the end of that 10 years on the average single family home, it would be worth over $158,000. So your gain on your $10,000 investment very roughly here is over $58,000 versus your gain in the s&p 500 have only $7,000 in change. And this is not including the incredible tax benefits. Real Estate offers as America’s most tax favored asset. Now, I have talked a lot about the virtue of debt, real estate because we put the real estate label on it. The entire US banking system and nowadays, many banks around The world in different countries see how favorable real estate is as an asset class, and they will offer much more financing on real estate, because they know it is a much safer investment than stocks. Why do you think it is banks will loan you 90 95% of the value on a piece of property, yet they will only loan you 50% margin on stocks, because real estate is a safer, better asset class. Okay, so what if you get into trouble, leverage or debt needs to be treated with respect, it is a powerful tool for wealth creation. You can accelerate your wealth creation much faster by using leverage in a smart, conservative, prudent manner. But if you’re not careful and you don’t respect leverage, you can also get yourself into trouble with it.

Jason Hartman 22:56
So we have to respect it properly. Now I asked a lot of you and I have before, how many of you have ever loaned money to a friend or a family member? Guess who was in control of that transaction? Was it you the lender? Or was it your friend or family member, the borrower? It’s the borrower, the borrower has the position of strength whenever they borrow money. So I say borrow money. Shakespeare was only half right when he said neither a borrower nor a lender be being a borrower is a good position to be in as long as you are borrowing money on assets that create wealth and not assets that decline in value and do not create wealth like consumer goods, bad borrowing, good borrowing, constructive debt, destructive debt. But the other thing that happens is that the lender when you get into trouble if you ever do is to a large degree, your partner and your advocate and The party that can help you through these troubled waters. So let’s listen in to a clip from a great book entitled all the money in the world where the author profiles the Forbes 400 richest people in america. And here’s what he says in this short clip about Donald Trump. When Donald Trump the big real estate investor, the big real estate guru got into trouble in the 90s. What did his bankers do? Well, his bankers became his ally, his partner and his advocate. If he was not leveraged if he was not in debt, he would have had nobody to turn to except himself. So listening to this clip, and I will be back with you in a few minutes, and we will talk more about the virtue of debt.

Narrator 24:56
Donald Trump, he has learned the hard way that in the casino and really State industry, it’s best to share the burden among as wide a group of people as possible. One of the highest profile victims of 1980s over leveraging and one of the few who lived to fight another day, Trump still emblazoned his name on many projects springing up around the country, but it is often other people’s money that bears the brunt of the risk. Trump began building his empire in the early 1970s by buying the railroad yards along the Hudson River of the failed Penn Central Railroad. Then he began investing in land and Atlantic City, eventually buying two hotels, the Trump Plaza and the Trump castle. Both were described as deteriorating and problematic. In 1987, Trump added to his Atlantic City gamble by borrowing $80 million to buy a controlling interest in resorts International, a company that included the Atlantic City Taj Mahal among its properties. The purchase was a first Step in wresting control of the company. In addition to wrangling with shareholders, Trump also face competition from Merv Griffin, the TV tycoon who had recently pocketed $250 million from the sale of his television production company, which had created Jeopardy and wheel of fortune. Griffin outbid Trump for control of the company, and the two ended up in court. In hindsight, being outbid by Griffin was a godsend, as Trump later admitted to Forbes resorts was in bad shape. Griffin’s company finance the deal using $325 million of junk bonds and went bankrupt a year later when it couldn’t handle interest payments. Trump who had retained only the unfinished Taj Mahal Hotel Casino, along with a $12 million cash settlement survived, but then he further added to his debt burden in 1988 when he bought the Plaza Hotel in New York City. For $390 million, and the Eastern Airlines shuttle, which he renamed the Trump shuttle for 300 and $5 million. By 1990, Trump was more than $3 billion in debt. As Mark singer wrote in The New Yorker in 1997. Trump’s excessively friendly bankers infected with a promiscuous optimism that made the 80s so memorable and so forgettable had financed Trump’s acquisitive impulses to the tune of $3,750,000,000. Through the early 1990s, Trump and his organization went through a debt restructuring. He lost the Plaza Hotel, his Boeing 727 his yacht and the Trump shuttle. Were still Trump was personally liable for $900 million of the debt and was forced to agree to a personal spending cap of $450,000 a month in the opening pages of his 1997 book. Trump the art of the comeback. Trump recalls walking down Fifth Avenue one December evening with a holiday lights a glow, seeing a homeless bum on a corner and thinking that this unfortunate man was richer than Trump. It would take years for Trump to work his way back. In the mid 1990s, Trump took two of his heavily debt laden casinos public. The resulting company Trump entertainment resorts, filed for bankruptcy in November 2004. And reemerge the following May, with Trump’s stake in the company reduced from 47% to 31%. And with James B Perry, replacing Trump as chief executive, but the Trump Organization survived. Nowadays Trump and his eldest children Don Jr. and Ivanka make their fortune overseeing other people’s projects and bestowing upon them the Trump name and brand. Trump gets eight to 15% of us Developers condo sales usually puts up no money and gets upfront payments of several million dollars. According to Forbes, the Trump name can command a premium of 20 to 30% in added revenue for any project, and in 2006, the magazine reported no fewer than 33 Trump franchise projects underway. Yet, when asked what was the biggest risk he ever took, Trump didn’t talk about his brushes with bankruptcy. Instead, he replied, I took a big risk when I decided to star in and co produced the apprentice. The statistics show that 95% of all new shows fail. Those were not great odds, but I had a feeling the show would work. I wasn’t expecting the show to become the number one show on television. That was a nice surprise. But I did think the concept had merit and knew we’d encounter some level of success with it. So how could a man whose businesses were once mired in billions of dollars worth of debt with $900 million of that owed personally see his biggest career risk as the apprentice. As weird as it seems. It also speaks to the Supreme Self Confidence shared by Trump and many others on the Forbes 400. When asked about that time in his life, Trump says, pressure can bring out the best and worst in people. And in my case, it made me stronger and more determined than ever. I also employed my blip versus catastrophe theory. Yes, I had some financial problems, but it wasn’t a war, an earthquake or something truly horrific. That allowed me to keep my equilibrium and perspective intact and make my company bigger and better than ever. Then he adds, I was already planning for the future and what I would be doing, and I just knew that I’d pull through and continue working at what I love doing

Narrator 30:57
in case after case self confidence, fearlessness save the day for members of the Forbes 400. But it also helps if they are obsessed with their vision. Take for example, the case of shipping magnate Daniel Ludwig. Born in 1897. Ludwig started out at age 19 with a $5,000 loan that he used to buy and convert a pedal steamer into a barge. Later he moved on to chartering and eventually building tankers, becoming the owner of the fifth largest tanker fleet in the United States. By the end of World War Two. Ludwig leveraged his tankers to build a fleet that peaked at 60 ships, which he then used as collateral for loans that financed business ventures throughout the world, including real estate and mining.

Jason Hartman 31:46
Wasn’t that interesting? By the way, there’s a lot of interesting stuff in that book or on the audio CD, which is what I played a clip of, and I’d encourage you to get it. It’s called all the money in the world, and it’s about the Forbes 400. So it’s really quite interesting. Here’s the thing. Now you may think after listening to that, gee, what if Donald Trump didn’t have that debt? The debt is what got him into trouble. Hmm. It does not make the opposite point. You’re wrong about that. If you think that because the debt is what allowed Trump to create so much wealth, and remember, the debt is what gives us the inflation hedge the main part of it, you’re paying the debt back and cheaper dollars. I mean, it’s kind of funny how they say that Trump said, Well, I was in so much trouble, I was under so much pressure, yet he was getting his bankers put them on an allowance of what $400,000 per month. Gee, it must be tough to live on that kind of money. And just remember, you can grow a lot faster with the prudent use of leverage. But I want to make something clear that anything that does not create income does not qualify in my eyes as an investment, but rather, a speculation. I’ve given the example on prior shows about when I bought those gold coins from the monic stealer. And I said, I’ll pay cash for them because I have to you won’t finance them over 30 years at the lowest interest rates and for decades, I don’t get tax deductible interest, and I can’t rent them out to anybody. Remember, we don’t recommend they can land because it doesn’t produce income. Your house is not an asset the house you live in, because it doesn’t produce income. Anything that is a consumer item, a new car, a new plasma TV, a vacation new clothing. That is not something you should use debt for, because it does not produce income. Only use debt for income producing assets like rental properties, because someone else pays the debt back for you. That is the key to creating wealth with debt. Otherwise, you’re a speculator. You’re just planning to buy low and sell high. If you buy stocks, you are a speculator buy low, sell high, maybe get some dividends along the way. If you buy precious metals, you are a speculator. Now, granted, I’ve made some good money in precious metals recently, and you might have to and a lot of people have, but did you know it was gonna happen? For sure? No, no one is ever Sure. predicting the price of gold or platinum or palladium or silver is nearly impossible. Ask all the gold bugs in 1980, who thought the price was going to go up forever? for 18 years, it’s out there and did absolutely nothing but decline. So speculative. Buy something that has universal need. Everybody needs food, clothing and shelter. And when it comes to shelter, the only choice they have is they either buy it or they rent it from you. Someone else pays for it, the bank pays for it, your risk is very low, because you’ve only put a small amount of money into the deal. And by the way, let me mention something else about risk and debt when talking with people in some of my seminars and so forth. I’ve said before that the best insurance is a high loan balance. And you know what, I hate to say this, but it seems to be true, at least in past experience. Look at what’s happened after natural disasters like the Northridge earthquakes here in the 90s. In California, Hurricane Katrina, Hurricane Rita, the people that got hurt the most were the people that owned their properties free and clear, because they were the ones that had to go fight with their insurance companies to get them to pay the claim. Whereas the people that were highly leveraged, their lender became their advocate. Their lender was the one that helped them battle with their insurance companies to go recover the money and pay the claim after Hurricane Katrina, the states of Louisiana and Mississippi, I believe it was. The Attorney General there, sued all the big insurance companies because of their unwillingness to pay the insurance claims. You don’t want to go down that path. You don’t want to be arguing with your insurance company. You don’t want to have to go hire the attorney to bicker with the insurance company for you. Let your lender do it. your lender becomes your friend, your advocate, your partner, who is in there with you, just like with Donald Trump, but the thing about it is that your lender doesn’t get any of the profits. They just collect a small interest rate paid for by somebody else, your tenant pays your lenders interest rate you don’t pay it and then the value of that debt goes down over time with inflation. So you keep paying it back and depreciating dollars. listen to the podcast where I talk about inflation, especially The great inflation payoff. So I hope this was helpful to you to keep the concept of debt in perspective. Again, a powerful tool for good, but it needs to be used prudently, conservatively and with respect. And you need to follow all the other rules for this to work. You need to make sure you’re not a speculator, you’re only buying properties that make sense the day you buy them. That’s commandment number five. All right, so there are 10 other things you need to do, right? To make sure this works. Go see my show on the 10 commandments of successful investing, for more details on that. And in the meantime, we’re getting a little long here. So I want to say Happy investing to you. And Tune in next week. We have another great show coming up for you on a whole bunch of different interesting topics in the future. So this is Jason Hartman over and out happy investing. Hey,

Investor Client 37:56
so we’ve been Platinum members for a couple of years now. We’re just real pleased with the way things are working

Investor Client 38:01
out. We

Investor Client 38:03
can be happier and it’s really changed our lives for the better.

Announcer 38:07
Are you ready to take the next step? Then join us the Platinum properties investing network in Costa Mesa, California for our next creating wealth seminar on Saturday, September 20. As millions have discovered, you can become very wealthy by investing in prudent income properties. Jason Hartman and the rest of the Platinum properties team will show you how to select the very best markets earn returns in excess of 30% and protect yourself from a loss of equity. In this full day educational event, you will learn all about Jason’s unique servat of investment philosophy that works in real life with no hype. Seats are limited. So visit Jason Hartman calm today to register. That’s Jason hartman.com. On October 25, and 26th Join us at the Masters weekend a gathering of experts. This special event only happens twice a year with our panel of 16 experts. We’re putting enough real estate brainpower in one room to make Donald Trump flinch. The Masters weekend is a powerhouse education that can revolutionize how you think about money and wealth. Our speakers come armed with the latest and trued real estate investing techniques. And we’ll address such issues as the smart way to choose your properties. How to grab every tax benefit, the law allows how to put together the most creative financing package possible, the hidden power of the 1031 exchange, and how to easily invest in dynamic growth markets outside of California. Order your ticket before October 1, and you’ll receive our early bird discount spaces limited reserve your seat now head to Jason Hartman calm and click on events. That’s Jason hartman.com. The Masters weekend beginning October 25. Have you heard about the go zone what might be the greatest tax benefit in history? If not, you must attend our go zone tax benefits seminar on Tuesday, September 16. Right here in Costa Mesa, California. Act now to start slashing taxes for the past two years and set up your ironclad tax annihilation plan for next year. Sure, you could spend months picking through tedious legal jargon yourself, but our real estate specialists already understand it and for less than the price of a state with all the trimmings. You can be front row Center at the go zone seminar, ask questions take notes, bring your tax advisor, leave with a solid understanding of how to save on taxes like no other time in history to register for this very special event on September 16, head to Jason hartman.com and click on events. Jason hartman.com.

Jason Hartman 40:17
Attention agents, brokers and mortgage people. Do you know that we cooperate? Do you know that our network is an open system that you can refer clients and outsource your investor clients to us and receive passive income? It’s a really great opportunity. All you have to do is register your clients at Jason hartman.com and tell them to attend one of our live events or live educational seminars. Listen to our podcast, go to the website and request our free CD at Jason hartman.com. And if they invest with us, per the terms listed on the website, you will get a referral fee. We have lots of agents brokers and mortgage people that received surprise referral fees that they weren’t even expecting. They get a check in the mail. And they are just happily happily surprised. It’s a nice extra supplement to your income. So be sure to take advantage of our broker cooperation. Agents are welcome. We cooperate with outside people, and we’d love to help you with your investor clients. Hey, I just wanted to announce a couple of quick things for you. 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 US for them. So hopefully you can join us for some of those events. I wanted to mention to you that we have a new offering a free CD, a free audio CD that you will really really like we’ve had so many people that have given us really good comments about them. And you can go to our website at Jason Hartman calm and just fill out a little quick web form. And you can either download it or you can have the physical CD mailed to you in the postal mail, but get the free CD, especially if you are a new listener, you need this. And if you are a regular listener and you’ve listened to all the other old shows, you don’t need the CD so much, but it’ll be a nice review for you either way, but if you’re a new listener, you definitely want to go to Jason hartman.com and request the free CD. Remember that Platinum properties investor network has moved we are in our beautiful new office in Costa Mesa, California. 555 Anton suite 150 in Costa Mesa, California, nine to six to six, and we’re right by world famous South Coast Plaza, so come in for a visit and a little shopping. Also, we just uploaded another video podcasts. And I’d highly recommend that you subscribe to that. There’s some stuff that just lends itself better to video than audio. If you want to see what’s on that subscribe to it. You can go to Jason Hartman calm if you use iTunes or an iPod and you You’re an apple person, then you can go to the iTunes Store, type in Jason Hartman. And to podcasts will come up the video podcast and the audio podcast. And you’re probably already if you’re listening a subscriber to the audio podcast, so make sure you get yourself a free subscription to the video podcast as well. And this particular one that we just loaded in the video podcast is about naked short sales. And what goes on with this short sale and manipulation on the stock market. It’s a very interesting report from Bloomberg News. And I think you’ll really learn a lot from that so be sure to tune in and watch that. Be sure to see appropriate disclaimers and disclosures on our website at Jason Hartman Comm. Remember that we are not tax or legal advisors. Anyway, we’ll talk to you next week. Thanks for listening

Announcer 44:06
Copyright The Hartman media company for publication rights and interviews please email media at Jason hartman.com. This show offers very general information concerning real estate for investment purposes. opinions of guests are their own. Jason Hartman is acting as president of Platinum properties investor network exclusively. Nothing contained herein should be considered personalized personal financial investment, legal or tax advice. every investor strategy and goals are unique. You should consult with a licensed real estate broker or agent or other licensed investment tax and or legal adviser before relying on any information contained here in information is not guaranteed, please call 714-820-4200 and visit WWW dot Jason hartman.com for additional disclaimers disclosures and questions.

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