1578: Senior Housing Decline, Workforce Housing Boom, Memphis 3.0, Investment Counselor Adam

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 multimillionaire 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. And now, here's your host, Jason Hartman, with the complete solution for real estate investors.

Good day and welcome to episode 50, 15, 78, 1,578. And since it is Throwback Thursday, I thought I'd give you a throwback picture. Look at all of that extra hair. Who needs all that hair, right? I miss it, I tell you. But I found that old picture. You know, I've been getting some of my old videos digitized because, hey, I don't have a VCR anymore. You probably don't either. If you do, it's probably very valuable because I hear that nobody's even making them. So there you go. So there is a Throwback Thursday picture from an interview I did on ocn, Orange county news channel. That was Pete Weitzner interviewing me, the anchor person for ocn. What a great guy. He's a professor at Chapman University, last I checked. But there you go. Now, an interesting tie in with this Throwback Thursday is none other than the famous Elon Musk. Now, you know, I don't know why he is so focused on electric cars going to Mars. Whatever he's into, you know, implanting chips in our brains. Forget about all that stuff, Elon. We want you to share the secret of getting our hair back. That would be a real service to humanity. Yes, yes, it would be. That would be a great service to humanity. Come on, Elon, share the secret with us. We all want to know. We all want to know. That's the important stuff right there. All right, what's going on in the real estate market? Well, lots of stuff. As always, these are interesting times we're living in. If you need us, reach out Jason hartman.com or 1-800-hartman in the United States. That is a US only phone number. And let's see here. Oh, boy. We got some bunch of questions and comments coming in. And I wasn't really planning to take questions and comments because this is just an intro for today's episode of the podcast, but I might just grab a couple of those. Also, I want to make sure all of you know about our Alexa skill. Yes, here it is. You can just say something like this.

Alexa news Jason, here's the latest from your Flash briefing. In today's briefing from Jason Hartman, how.

Do we acquire good debt assets and to what do we attach this good debt? Let's review some of the investments that don't work very well in acquiring good debt assets. Anyway, I won't play the Alexa skill, but you can get it yourself. Just get it on your A L E XA device. I can't say that in here because she's listening. Big Brother is listening at all times. But go ahead and download the A L E XA skill in the Amazon app. They have their own app store, right? The Alexa Skill Store. Just get Jason Hartman's real estate update Flash Briefing and every single day you'll get a little five minute or even less episode, if you will. That'll teach you something about debt assets, packaged commodities investing, inflation induced debt destruction, all kinds of things. And I have to tell you, the interesting thing about income property is that it is such a fantastic stable asset class that many of those A L E X A for your Amazon Echo, many of those Flash briefings are old. You know, I recorded some of those 10, 11 years ago maybe and turned that into the Alexa skill, put that, loaded those in there and they're so true today. They're true today as they were during the Great Recession, as they were during all the boom times we've had over the past several years. And it just shows to go you that income property is such a wonderful stable asset class. It really, really is. So make sure you get that it's 100% free. Then you add the Jason Hartman Alexa skill to your Flash briefing. And every day when you say Alexa, start my day or Alexa news, you'll hear that update and you'll get a lot of good lessons there. A lot of people love that. And you know, we don't talk about it very much and we, we should, we really should. So senior housing now, look, there is this trend obviously going on that's been going on for decades in America known as the Graying of America. The graying of America, meaning Americans are getting older. In fact, Western populations sadly all over the world aging themselves out of existence. Japan, Russia, Western Europe, United States, people are just not having kids and well, you know, say whatever you want about that, but there's a whole UN study called Empty Planet. Well, I don't know if it's the name of the study or the name of the book, I'm not sure. But the idea is that, yes, I know all the Malthusian, you know, people that think the economist Malthus from olden days that talked about how population would ruin the world and scarce resources and all this absolute stupidity. Stupidity. Where's my sound effect machine? Illustrate stupidity. Yeah, bad stuff. Malthus was totally wrong because he viewed humans as a cost rather than a resource. Yes, I know humans do tax the environment and they tax resources and so forth, but ultimately they're a resource because they solve the same problems they create and even more well, anyway, that was kind of a tangent. Tangent alert. But senior housing occupancy hits a record low. Look folks, your aging parents, or maybe you are concerned about being in a institutional setting, obviously the fear of COVID the fear of contagion, all these kind of things. These occupancy levels are down. They do vary dramatically, of course, as the article says, but they are down overall. And one of the six trends that I predicted in my pandemic investing lessons that I talked about last week when we did our pandemic investing zoom class is the multi generational living trend. Now, this is popular in many, many places around the world, but unpopular in America. And I say it is coming back to the US where you are going to have multiple generations, three generations, maybe even four, living on the same property. I didn't want to say under the same roof because a lot of them guest houses, casitas, whatever, and they'll be living there. But the idea is that multi generational living is making a comeback. That is my prediction. I predicted that back in February. And we'll see. We'll see if that prediction comes true. You know, most of my predictions are pretty darn good. Yes, sir.

There you go. They are pretty good. Except, you know the one I'm really wrong on? I've been scary how wrong I've been about interest rates. Sadly, I am not good at predicting interest rates. Who could be? They're so damn manipulated. I mean, these interest rates are totally manipulated. So I couldn't predict them. Nobody could. But as senior housing declines, there is a boom in workforce housing. Now, isn't it funny how we have these politically correct ways to say so many things nowadays? They used to call it class C housing. They used to call it slums. They used to call it class C and D housing. Now they call it workforce housing. Which, you know, is great. That's true. It is Workforce housing. I have owned many Workforce Housing apartment units. Just sold a big one last year for a nice 5 million bucks. Exactly. That was a pretty nice deal. It was the first time ever that I did not complete my 1031 tax deferred exchange. I did something a little different, talked about it on a podcast episode and you know, just filed my tax return on that. So I'm hoping that's going to work out. Okay. I think it is. I'm really pretty pleased with it. So if you want more information on that, reach out Jason hartman.com or 1-800-hartman if you are in the United States. But look at the point is here, this article is about apartments, but it doesn't matter. It's any entry level housing. Bread and butter. Housing is where it is at. That is going to be a very, very good investment for many years to come. At least the next decade, if not longer. Because remember when you are at that entry level of the spectrum, and I don't mean slummy properties, I mean below the median price in any given market, okay, whatever that market is below the median price, hopefully that's a good linear market. As we teach as you'll find those markets on our platform@jasonhartman.com properties. You can find those types of markets and properties there. Jason hartman.com properties but look, the point is, if things are good and the economy is going well, you catch people moving out of the parental unit's home, right? Moving out of their parents home, moving out, roommates breaking up. And you catch people starting their life and moving up through the socioeconomic ladder. If times are bad, you catch people moving down the socioeconomic ladder and you can serve them by providing housing and meeting this tremendous demand. The demand for this type of housing has only been increasing as builders have not been supplying that demand at really any level even worth mentioning for the past 10 to 12 years. Very good thing. Go to jasonartman.com to find out more of that. Now when we look at the inflationary pressures building up in the market, they are rather astounding. And here we look at August Pending Home Sales. This is the Pending Home Sales Index from the national association of Realtors, otherwise known as nar, the largest trade lobbying organization on the planet, so far as I know. By the way, if I'm wrong about that, because I sort of keep repeating these things that, you know, I learned a long time ago, it could have changed, I suppose, but it's a pretty big trade organization. They Do a lot of research. Of course, you got to take everything with a grain of salt because NAR is promoting real estate brokerage, right? So you know, they're always going to be kind of rah rah. But regardless, you know, the stats are accurate, I'm sure. So we see the pending home sales index, the phsi, and here are the numbers on this, but here is the growth, okay? And this is the year over year growth that is nothing short of tremendous, folks. So broken down by region, you see the Northeast, the Midwest, the south and the Western United States. So just one more of many indicators of more asset price inflation. Now, I think there is broad inflation that's measured, of course, by the cpi, the Consumer Price Index, which is understated and manipulated. I've talked about that so many times before. Go back and look at my previous work to learn about how the Consumer Price Index is manipulated. Remember the three basic ways, weighting, substitution and hedonic indexing to manipulate and understate that Consumer Price index. Remember, the government employees, the government assistance programs are tied and indexed to the inflation index. So there's an obvious reason for the government to understate inflation. Now let's look at this. When you see this graphically, you see homes sell. And by the way, this is from Zillow. This is a different study, okay? So you see home selling more quickly at a time of year when sales typically take longer in terms of days on market. Remember this year due to the cerveza sickness, the normal spring selling season this year that was delayed, it was postponed. And when the lockdown started to lift, when the quarantine started to lift and everybody rushed into the marketplace and probably overstated that bump. But now we're seeing it sort of mellow just a tad. Just a tad. And we're seeing still very strong demand as we experience the Grapes of Wrath 2020. Yes, like the John Steinbeck novel, people are moving. America is on the move. You can't even get a moving truck to move you out of New York or San Francisco because people want to leave those desperate, poorly run left wing, disastrous places so much. But look at this here as we break things down not by location as much as we break it down by the tier in the price. Remember, whenever you hear anybody talk about the housing market or the real estate market, they're just talking in sound bites. You've got to peel back the layers of the onion. And so here we see the lowest prices, right? We see this very light blue line on the chart. We've got Back to January of 2018 up to July of 2020. And we see sales up and down along those things. But interestingly, in all price categories, they're acting somewhat the same. They're not far off in terms of the relationship. But of course, the highest price homes represented by the darkest of the lines are taking the longest to sell. But even when you look at that, it's not very long at all. I mean, let's just go across this graph. It's just over 30 days to sell a high end home in America in all regions. And then you take the low end properties and those are selling in about 15 days, you know, give or take, depending on where they're located and exactly what part. Lowest, low, middle, middle, high, middle, highest price range. So all price ranges selling very, very briskly right now. And here, you know, I mean, look at this. This is again Zillow study. It says the typical US home in just 16 days in September, or that's how long it took. Sold in just 16 days, down from a whopping 17 days in August. Oh, my God. But 28 days a year before. Okay, so just lickety split. I mean, things are selling so, so fast. It's absolutely crazy what's going on. All right, we might as well grab a couple comments and put the. All right, planning ahead. But I'll put the throwback Thursday picture up there as I take a couple of these questions. Then I've got to jump to part two of today's show. So Kevin says. What's up, man? Hey, what's up, Kevin? How you doing? Glad to get time before you blow up in popularity. Hey, thanks. Hey, we just passed a 10,000 subscribers on the YouTube channel. So thank you all subscribers out there. And if you're not subscribed to my YouTube channel yet, my humble little channel, just past 10,000 subscribers. You know, I've never really focused on YouTube. I've always been more interested in podcasting. But now we're trying to make more video content and that's what we're doing right now for you. So Kevin says, thought on housing market near Midwest universities. Hey, Kevin, I got to tell you and everybody, you better listen to this carefully. I think that the situation we're in right now with the pandemic has disrupted, thankfully, so many things. So many things that were bad needed to be creatively destroyed. If you follow my work. You know, my favorite economist is Joseph Schumpeter, and he was the one that promulgated the idea of creative destruction, saying that capitalism destroys things in a positive Creative way. And one of the things that's long overdue for disruption, creative destruction, whatever you want to call it, is the university government debt enslavement complex. Why do I say government? Because the government created the problem by insuring student loans through Sallie Mae back in the 1970s. And what happened? Well, a tidal wave of money started flowing in to these pathetic rip off colleges and universities, you know, where you used to be able to work a part time job and pay for your upper level education. Nobody could do that anymore. Now you would have to get a loan. Why should you have to get a loan to go to college? That's absolutely absurd. You should, you know, the price of college should drop to the market price that's reasonable that people could pay working a part time job while going to school. And if Covid really disrupts that, and I think it is disrupting it because now we're seeing the backlash. Look at the social justice warrior scumbags at Harvard University. They did not lower their tuition price at, at all when they announced that all classes would be online. I mean, think about how absurd that is. Technology has created so many inexpensive things for people. It has reduced the price. It is a deflationary force in so many ways. Except it has yet to disrupt the college university government debt enslavement complex, which it needs to disrupt. I think people have wised up, thankfully. I think Covid has wise them up. Why should you pay $48,000 to sit in front of a laptop screen and get your education? Even if it has the Harvard brand on it? It's ridiculous. Technology is infinitely scalable. So that means you could literally pick the best professor in every topic taught at a university. And that one professor could teach every college student on planet Earth. And the cost of that class could be $1. You can tell this is an epic scam when they are just ripping people off. Not that I'm exactly on a rant about that or anything, but what does that have to do with Kevin's question? Well, it has a lot to do with it because college towns have typically had overpriced real estate. Why? Because colleges, number one, have turned into hedge funds. I mean, it's absolutely ridiculous. In any college town, the biggest real estate investor, the biggest landowner, is the college. I thought the point was to teach education, to educate people. Not to be a real estate investment trust, not to be a hedge fund, not to be a branding agency and a sports marketing company and you know, and force your college students to rent dorms from you. Talk about antitrust restraint of trade. You know, after they get done breaking up Google under this antitrust lawsuit. Thank you, Justice Department. Good job. Finally they are. Or Department of Justice, whatever. Yeah, DOJ for suing Google and Apple. Shame on both of these companies. Right, so hopefully we'll get some justice there. But next, the universities. I mean, that's what's called an antitrust law. It's called a tying arrangement where you say, okay, if you want to go to my overpriced college, you're now required to stay in my overpriced, you know, rentals, my overpriced housing, my overpriced student housing. And this is just a total scam. So look it, I would wait for any college. Like the student housing investment has been really hot for many years, but I would wait to see that get disrupted, let it get disrupted and let the pace come down. Then let's talk about investing in those markets. Okay, so not yet, Kevin. We'll see. Okay, the other another Kevin, okay, says Musk is a hypocrite. He takes government subsidies and decries socialism. Yes, I agree, he is a hypocrite. But look at. Everybody's a hypocrite when it comes to their own money. You just have to expect that. Yes, Musk is a hypocrite. I agree, but whatever. Listen, I just want him to tell me how he, how he fixed his hair. That's what I want to know. And Carrie says, great photo. Hey, thanks, Gary. Yeah, I miss all that extra hair I used to have. Okay, so where do you see multifamily market going? Well, hey, I think multifamily workforce housing, that is the garden style housing, meaning it's usually maybe two stories, where someone doesn't need to get in an elevator, where it's not really, really high density. I think that's okay. You know, the elevator is the danger zone. Just know that the two big danger zones, in my opinion, for any concern about contagion or civil unrest, these tend to go right together. They track together are elevators and mass transit. Okay, elevators and mass transit are the danger zones, right? Because you can't socially distance on them. And you're also tend to be in areas that are prone to riots by Joe Biden voters because riots are essentially the biggest Joe Biden campaign rally in history. Okay, do you get it? Do you get that joke? Well, sadly, it's not really a joke, but anyway, I hope you get it. But the multifamily market for garden style apartments I think is okay, but you don't want to be in the urban core, because any urban areas are really susceptible to, obviously to contagion concerns. And they're also very susceptible to civil, unrestricted. So all of that is bad. Okay. You must know Foxconn. Well, yeah, I know about Foxconn, the manufacturer for Apple in China. Sure, what about them? But yes, I certainly am familiar with Foxconn and the slave labor that Apple employs to make our phones. Yes, see, and we're all kind of hypocrites. Cause look, we buy them. Okay? So. And hello from Bend, Oregon, Omar. Yes, hello to you too. Without further ado, let's get to part two of today's episode. Adam is back with us. Adam is one of our team members. We are going to play the interview I did with him on the podcast. So part two will not be on the live stream, but it will be on the podcast today with Adam. So just look up the Creating wealth podcast and you can join us for that there, but on social media and YouTube. Thank you so much for joining me for the live stream and thank you for the comments. And until next time, happy investing.

So one thing that I found very interesting as I was reading the report that I think we need to mention right now is Memphis has been concerned about their home prices and their. Their housing, obviously, as it's moved along. But they commissioned the Memphis 3.0 plan that was approved in 2019. And what they're talking about and what they're planning on doing is they said their goal is to build up, not out. And if you're building up, you're not building new homes, you're building high rises, you're building all of the other things. They're not looking. It's not in their plans to build more single family homes because they don't want it to sprawl any more than it already did. I didn't realize when I started investing in Memphis how huge it is. Yeah, it's over 320 square miles. And you can fit the cities of Atlanta, Seattle, and Orlando combined inside of the Memphis city limits.

Wow. I had no idea. That. That amazes me. I didn't know. I mean, Atlanta is a giant city. Yeah.

According to the Memphis housing report, you can fit those three cities inside of Memphis.

Unbelievable. But, you know, I wonder, I mean, that plan to build up, not out, to limit sprawl and have more high rises, that's a pre Covid plan, I'm thinking. Right. That was.

It was approved in 2019 to do that.

Yeah. But it's going to be really hard.

To Just pivot away from that.

You're right. No, it absolutely will be because you got to deal with planning commissions and zoning and all kinds of politics and everybody's got some special interest and their money's at stake. So they're not going to give up easily. Right. With their lobbying efforts.

Good luck telling the apartment builders to stop.

Right. But folks, you know that the single family homes have just become more and more valuable because one of the things I predicted way back in February is that, and this is one of the things we're going to talk about at our upcoming Pandemic Investing one day event. And it's on zoom, it's online, so it's real easy. This is super low commitment. Go to pandemicinvesting.com and join us for that. It's really important that you join us for that and get this information. We will have a generational ptsd, a post traumatic stress disorder, even after there's better treatment, even after there's a vaccine. Or maybe the whole thing just evaporates after the election, you know, as some say, because it's become this political football. But regardless, people want to socially distance. They don't want to be in elevators, they don't want to be in high density environments anymore. And I think that's going to stick with us for a long, long time. And remember before COVID there was sars, there was swine flu, bird flu, mad cow disease. You know, there's, there's always something or there's just the regular good old fashioned flu, which is pretty deadly frankly. And then you combine that with civil unrest and you know, you don't see this kind of civil unrest and these, these ridiculous riots going down suburban streets with single family homes. They're always in high density urban environments. So there's two big factors here that really promote the idea of owning these great single family homes. So they're going to be in more and more demand, as Adam alluded to. Okay. John asked, does the Hartman Network have referrals for financing? Adam?

Yes, we do. We've got multiples. We, and we're looking for more because as we've talked about with the high demand for properties, it's getting longer and longer for pre approvals. So we're getting, we're finding more lenders and sending people to the ones that can churn out the pre approvals fastest.

If you are watching or listening to this and you are a lender that works with a bank or mortgage brokerage, whatever, mortgage, banker, broker, reach out to us if you do nationwide funding. If you can fund nationwide or at least in the states that you see@jason hartman.com in that properties section. Okay. Because we have lots of referrals and lots of business for you. So thanks for the question.

It's okay if you're not licensed in New York.

Yeah, yeah, we don't care about New York. We're not doing any business there. Or at least when you say New York usually mean New York City, but we're not even doing New York State. Okay, tell us about this one, Adam.

So this is just kind of, we talked about how it's been the darling of investors for a while in Memphis. And I'm going to tie it into something that I don't have the chart on up here, but this is the non owner loan totals. So this is investors essentially. And the, they have steadily been going up and it's just been happening year after year after year. Which shows you that if these are going up as high, then the residents inside of Memphis can't be buying these properties.

Okay, well, wait a sec. Let's make sure people know what you're talking about here. See, it's, it's when you're in the business, you kind of talk in shorthand, but when you're not in the business you need to explain a little more. So what you're saying here is this is the, this chart and these numbers on the screen show the number of non owner occupied loans in, in Memphis, right?

Yes. And I'll, I'll read it through how.

Many loans there are for the people.

Listening on the podcast. In 2010 there were approximately 700 loans. In 2011 it was 775. If we go to 2014, it had gone up to 1,375. In 2017 they were at 2300. And it's just like I said, it's continuing to go up. But the interesting thing is we talked about how they're building up not out the size of Memphis. The population growth and land growth from 1850 to 2018 was enormous. However, since about 2010, Memphis hasn't grown in terms of city size, but the population is still growing.

Right?

The population, it's not taking up a ton, but the population is growing and the city size isn't. And that's going to tell you if you have the city size staying the same and more people looking for places to live in there, it's going to push prices and it's going to push rents. And that's in the end, good for U.S. investors.

Okay. So the takeaway here, that is one takeaway. But the takeaway from what's showing on the screen is that there is a massive increase in non owner occupied financing in Memphis because investors are rushing to buy rental properties there, income properties there. And this chart only goes up to 2017, so I'm sure it's even higher now. But from 2010-17, the number tripled, the investor interest tripled in that seven year period. So that's pretty amazing. Good stuff, Good stuff. Thanks for sharing.

Ramin has a question down there. He says if I plan to purchase a rental property or two this coming year, should I put the funds in a new banking account beforehand? Ramin, what the lenders tell us is you have to show the funds in your bank account for about the last 60 days so you don't have to move it right this minute. But when you're getting close, they don't want to see a large influx of cash within the past two banking statements. If they do, you have to go through the process of saying, this money came from here. It wasn't a loan, it wasn't this, it wasn't that. And you have to prove what it was for. And honestly, it's just a pain. So they say they call it seasoning your money. So put it in there, you know, at least three months or so before you're planning on purchasing your first one.

Yeah, I'd say three months is the better conservative bet. And that's called seasoning. Basically, you want to season that money in that bank account so that the lender isn't suspicious that it's not yours. Right. They want to show that you have, you know, a stake in the deal, you have skin in the game. And so that's why it's important that, that, that money be in there. Okay, Adam, on the screen we've got one of our performers. Now. I would highly recommend everybody go to Jason hartman.com and watch the free 27 minute video on how to analyze a real estate investment. How to read a Performa. It's some of the best education you'll have on investing. It's there on the website. And then. Oh, you're welcome, Ramin. No problem. It'll go through every single number on this Performa and it'll be very helpful to you. But let's take a look at this now. Now this is a Memphis property and this is a. Now we have nicer properties and we have cheaper properties and everything in between. Okay. This is one of the cheap ones.

Okay, so this is one of the cheap ones.

A lot of people love these cheap odials, so here's one for you. Okay, but this one's sold already, right?

Yeah, My first Memphis property was cheaper than this, so you can. You can find them. However, we haven't been having a ton of inventory in Memphis. We've talked about it on the show before. Foreclosures and everything was just hard during COVID We just got three Memphis properties in two days ago. They're all gone. They had a waiting list.

This one, they sold right away.

Yeah, they sold right away. This one had, I believe, at least two or three people waiting in line behind the original purchase agreement. The one who signed it, the other two had the same. There were two or three people waiting. So they were gone within probably no more than 24 hours before the purchase agreement was signed. But I figured, hey, may as well show you what was available. And they're planning on. They have a bunch more in the pipeline that will be coming up in the near future. So hopefully Memphis inventory will start picking back up.

Okay, so just to get an idea for this El cheapo house, okay, this is a $65,000 property with 25% down and closing costs. You'll need about $20,000, give or take, to buy it. It's only $66 per square foot. Projected rent of 725 per month. Here on the performance, got all your expenses. We're going to show you the second half of this Performa. We have to cut it in half to blow it up and make it really easy for you to see here. But what I do want you to see is this financial indicator, which is one that is not talked about. Maybe enough for really conservative investors. The debt coverage ratio, if you can see my mouse down here, okay, this is the debt coverage ratio is 2.03. And I like to call the debt coverage ratio the. How likely is it that I would ever get into trouble with this property ratio? Okay. And with this type of property, it is very unlikely because you've got a fantastic debt coverage ratio. It is almost unheard of to see a debt coverage ratio on a decent property above 1.5. Okay, so this is really phenomenal. Let's look at the next slide. Adam, do you want to take them through some of these numbers?

All right, so this property, not only is it that cheap, but it has new flooring, new H Vac, so it's not just a $65,000 tear down, it's properly renovated. So this one, when you factor in it's a $725 rent, which is about a 1.1 rent to value ratio, which is fantastic. Memphis, you can usually get around 1% once you take out. We have factored in a month of vacancy, 8% management fee, which you can.

Hear the assumptions down here. Okay. Yeah, so. And have a vacancy rate. They have the management fees and a high maintenance percentage, by the way, of 8%. That's.

Yeah, we. All of our, all of our renovated properties, we keep right around 8%. Just because you never know. I mean, it's, you know, it's built in the probably 50s or 60s, so you just never know. We like to play it conservative. I think it also has an interest rate of four and a quarter on the, the property on the pro forma as well.

Which you're saying is conservative, right?

Yeah, that's very. That's very conservative at 25% down. Now we've seen people get around three.

And a half percent, so that is amazing. Incredible. Okay, so here your projected cash flow is 247 per month, or basically $3,000 a year almost. And we talked about debt coverage ratio being phenomenal. Cap rate. I don't really like cap rate as a metric very much. That's why I jokingly call it the crap rate. But you know, a lot of people use it, so fine, it's. It's amazing. It's 9% projected cap. I mean, that is unheard of. Okay. At this time in the market. Cash on cash return, also phenomenal. This is better than the crap rate as a metric at 15% annually. And overall return on investment projected at 38% annually. Now, as I always like to say, assume that it only goes half as well as expected. Say that this is only 50% as good as it looks. Right. So if you're. If your ROI is half of this and you get 19% annually, that's a phenomenal return. I think everybody would agree. Yeah.

I mean, even if your cash on cash return gets halved, that's still decent.

7.5%.

Yeah, 7.5% is still decent. So, I mean, it's, it's got a lot of wiggle room when it comes to going bad. And I just wanted to show that.

Things go wrong here. You can have a lot of disappointments and still make money.

Yeah. So I just wanted to show this one because it was one of the ones that just popped up. Literally. It came up. I think he posted it two evenings ago, so, you know, 36 hours ago, and it's. It's gone.

Sure, sure. So Again, our upcoming event, just a short one day Zoom class, pandemicinvesting.com you get a free mini book there on Pandemic Investing and we're going to talk about a lot of factors that are very important. Just by literally going to visit this page, you're going to learn some stuff. You click up here, join us at Pandemic Investing Online Summit and it'll take you through to a page that's pretty educational. It's got a video on it and stuff like that. But definitely you want to join us for the event and get your tickets. Thank you for listening today. Get your free portfolio makeover from one of our team members, reach out through Jason hartman.com or 1-800-hartman or pandemic investing. Either way, we'll get you and we'll, we'll be in touch. Adam, thanks so much for sharing some of this info today. Anything else you want to say or want people to know here about this?

I would just say to Ramin, if you're thinking about working with us when you're getting your rental properties or if anybody else is, reach out. We're happy to talk with you, happy to help. Even if it's just formulating a strategy that you're going to implement on your own, you know, you may as well take advantage of what we have to offer. If you don't like what we have to say, then ignore us and go and do your own thing.

But it's, he'll love for the best, I'm saying.

So it never hurts to have a second pair of eyes on it. I mean, we're here for the whole thing. I, I plan on looking over a home inspection report for one of my clients in a little bit. So, you know, we go over everything with you. You know what, however much you want us to be involved, we're involved. However little we're involved, that little.

All right, good stuff, Adam. Thank you so much for getting this data together and sharing it with our audience. And everybody, thanks for joining us today. And until next time, Happy Investing. Of course, we've got the Creating wealth podcast five days a week and that's all available on itunes or Stitcher or whatever podcast platform you use. The Creating wealth show. Just type Jason Hartman and you'll find it and we will look forward to seeing you next time. Happy Investing, everybody.

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