Jason Hartman Part 3: Insider Secrets That'll Make You Money! (REVEALED)

Jason Hartman, top real estate expert, 👉GIVES YOU THE INFO YOU NEED 👈to make money with real estate. Jason Hartman has been involved with real estate since the age of 16! Since then he's become a self made real estate investing millionaire, owned properties in several states and cities, and is the host of the mega popular "Creating Wealth Show with Jason Hartman." I'm honored to have the privilege to interview Jason and he was kind enough to reveal some of his best tips and sure fire ways to make money in real estate investing.

As most of you know, I'm a huge fan of small cash flowing rental properties in very select markets in the US where prices are still sane. Jason Hartman sees things the exact same way. So much so, it's how he invests his own money. Jason Hartman isn't a "guru" he's an experienced pro with decades of real world experience.

In this Jason Hartman interview episode we specifically discuss many of the questions I get on the live streams and in the comments. Questions like:

1. How do I make money from a 30 year fixed rate mortgage?
2. How do I make money from inflation?

This is PART 3 of a 3 part series. In Part 3 Jason Hartman and I discuss his "inflation induced debt destruction strategy" . If you are interested in real estate, protecting wealth and making money THIS IS FOR YOU!!

For more content that'll help you build wealth and thrive in a world of out of control central banks and big governments check out the videos below!

Do you wanna see another video as incredible as this?

Stay tuned every week for new content!

#JasonHartman #Investing #PowerfulSecrets

[GeorgeGammon]

NOTE: Traveling today so don’t have time to reply to many comments. If you haven’t watched parts 1 and 2 please know Jason and I are NOT suggesting you should run out and buy real estate. Most markets are in a huge bubble and way overpriced. BUT, real estate is local and there are certain areas where a starter home, in a good area, can still be purchased under the cost of construction with an RV ratio over 1% (monthly gross rent 1%+ of purchase price). Remember the real estate mkt is extremely inefficient so you can still buy “cheap” properties when the market, as a whole, is expensive. Lastly, when you buy a rental prop you’re buying an income stream backed by a hard asset. If you look at it in those terms, instead of buying an asset that just goes up or down in price, I think it’ll make more sense. 😉👍

[neicusorin]

George Gammon runs for president 2020!! My vote is guaranteed

[jaygunter]

Unless I missed it, Jason's spreadsheet doesn't account for increases in property taxes over the years, and depending on location and property values this can increase substantially. It's also subject to additional legislation so if the states need more money it's a tempting target.

[psychafunkapus]

Why do so many economists assume the Fed is so stupid and or wants to get out of the mess they made? You can’t make this many mistakes on accident. Maybe they do want our society without a middle class (or one small enough to be meaningless).

[TimZ]

Dont go bet the farm on 30 year loans and leverage out for rental properties. If things ever get so bad people quit paying the rent you will loose em all to the banks. Pay off your main home and have some skills to make money and survive during really bad times. Then with the rest leverage out rentals. that way you cant loose it all. Chances are though they will just QE56789 and you will make money but you never want to put all your eggs in one basket.

[LisaMurphy]

So this guy cites his mother's mortgage payments as an example. Claiming her mortgage payments went down, adjusted for inflation, even though they stayed at 450 a month. So he said his mother was then getting a great deal because her payments essentially got less burdensome. But what he fails to tell us is what was his mother's income? If her income did not change then nothing changed for her. She was still burdened in exactly the same way as she started. If she was on a fixed income that would be the case and if she was at a job that did not give her a full cost of living raise every single month then she did not gain anything with regard to her payments. As to the overall value of the house, if she were to sell, the house price would be more than she paid, but so would be the price of any comparable house she buys if she changes homes. And in that situation the property taxes go up, so her burden increases, while she merely holds onto her standard of living. If she sells down, she can cash out some profit but, she may also have to take a certain amount of loss in capital gains tax and realtor expenses.

[xanthippesocrate]

I don't know if real estate is the best investment for two main reasons. First, the population is getting older and people after 60 tend to be a net seller of assets, they don't invest but divest moreover some pension funds will probably go bust and that will magnify this phenomenon. Secondly, real Estate is the easiest thing to tax and you cannot flee the country or your state with your house (unless you are a snail, just kidding).

[lowriskok]

TLDR: Depreciation is taken in an investment property ultimately raises your tax rate. It is not free money. The tax code says you should be taxed more when you are a long term holder. Would you rather pay 24% or 10% tax rate?

Jason Hartman is inaccurate that depreciation of investment property is "free money" to offset your investment income. Depreciation lowers your investment properties' cost basis and therefore upon the sell of the property your capital gains will be bigger. The gov't isn't ignorant of you "gaming them." In fact, they wrote into law YOU must take depreciation. Ultimately a lower cost basis means a larger effective and marginal tax rate when you sell your rental property. You will be taxed for the full value of purchase price after 27.5 years if your property value NEVER appreciates.

This is the math, you purchase a 3x2 house for 225K. After ten years you sell the property for 300K. Your annual depreciation would have been 8181.81 annually or 81.8K after ten years. When you report your capital gains, it will be 300K-225K+81.8K or 156.8K will your capital gains.

So currently, single below 82.5K you will be taxed at 22% and under 157.5K you will be taxed at 24%. Above 157.5K taxed at 32%. If the law DIDN't require you take depreciation then your capital gains would have been 75K and therefore you would have been taxed at 24%. Because you were required to depreciation your capital gain is 32% from 82K to 157.5K gain. However, if you WERE allowed to take the tax pain annually of 8.1K annually you have been below the 9.5K threshold and paid 10% taxes! The tax code is cleverly able to increase "the rake" by 300% upon your exit of the investment property.

[ts]

Holy You are the best George!!! Thank you, thank you, thank you!!!

[jays]

Thanks George! Once again, excellent teaching and content

[Peter-wpvb]

This guy assumes that everyday people receive the significant benefits of inflation.

The benefits of inflation are overwhelmingly concentrated in a select group of people. THEY are the ones who are able to leverage the ~10%+ inflation you refer to

[farmerdude]

At 26:00 . Real estate can be punished by high tax’s. And it can also be controlled by new laws placed to help recover the economy. Such as set rental payments.

[markalexander]

The question is: buy now and over pay slightly even in linear market BUT take advantage of 3% rate OR wait and buy lower but hope there is access to credit.

Realistically, it may be overvalued now, but if we hit mass inflation, now really is a good time to buy in certain markets. Can you really bank on gold to skyrocket to buy property? No. And you can’t use leverage with gold to buy more. My thought is, buy now with fixed rate debt, stockpile gold and silver reserves for each property you buy, and ride the wave.

Please send me opposing arguments. (Deflation if the killer of this strategy, but will the US really declare bankruptcy? LOL)

[tommyboy]

And is it my job to punch holes in this? Lol yeah, I didn’t cut him any slack last show. Just a few quick jabs this time. Let’s start by asking how well this exact advice worked for many home buyers in 2007. A lot of this is true but only when housing prices are “right”. Inflation simply doesn’t have this correlation unless you have wage growth at similar levels. We are not seeing that. Now give me just one example in the entire history where money printing worked. Lastly his math is incorrect on deductions for interest. New tax codes for most interest deductions are already baked into the cake for most home owners when they don’t itemize deductions and they also have limits. I’ll stop here. Just be careful people.

[dmircea]

I love this, and since you introduced me to Jason I have been watching him and he changed me mind so much. I still think renting and buying silver is better than buying a house and living in it but he is def making me change my portfolio into buying some more rentals

[artcoin]

Appreciate all that you cover but I’m still lost in “how does one invest in RE today without having a ton of capital to be in the positive ROI?” Thanks 🙏

[AllNighterHeider]

These videos came out right before I subbed. Glad I caught them.

[Peter-MH]

Totally agree with this, but it’s a case of ‘when’?! Japan should have been in hyperinflation years ago, but they’re still printing like mad & have little to no inflation - it’s crazy. If the US follows in the same way it could be another 20 years of little to no inflation, despite debt levels rising sharply. I think all you can do is spread your bets. Get a rental with a long term fixed mortgage, get some gold exposure & have some left to also maybe get some dividend stocks.

[edwarddiaz]

LET'S GO!!! GEORGE BACK AT IT AGAIN WITH FINANCIAL DYNAMITE!!

[kingakil]

Good Day George! I love the channel! I’ve been sharing your content with family and friends. Keep up the great work! #SDT