1943: New Year Affirmations, Massive Low End Housing Inventory Shortage, Strong US Labor Market

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My name is Jeremy. I'm a big supporter of Jason Hartman and grateful to Jason for a lot of what I've learned over the last four years. I can attest to him. We've had some good success using the strategies, being a little more conservative on some of the decisions. So we've purchased a couple of properties through the Creating wealth network through Jason's natural. I feel like I owe a lot to Jason and the team for the education part.

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, lending 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.

Welcome to episode 1943. 1943. Thank you for joining me. I want to talk to you today about some important market statistics. But before we get to that, and since it is a new year, a time when we tend to think about goals, New Year's resolutions, positive thinking, good old fashioned positive thinking or as they used to call it, pma, positive mental attitude, which is, you know, that just good old basic stuff. It's so incredibly important. It really is. But one particular aspect of it, affirmations, which you've all heard about, maybe a lot of you practice affirmations. I think they are a valid thing. We've done some shows on a sister idea to that and that's afformations, different from affirmations. So look back for those old episodes on that. But what I wanted to talk about today is a little bit of that affirmation component before we dive into some, some hardcore beta stuff, but also as it relates to self talk. Because the most important conversation any of us will ever have is the conversation we have with ourselves, right? Yours truly, right? It's that conversation going on inside our heads all day long. That inner dialogue, that self talk, right? So, so important. And I just thought, you know, maybe I'll start this show out With a couple of ideas for affirmations or ways to think about things. So I've got a couple of these on my screen that I wrote down. Well, not a couple. I wrote down a whole bunch of them. But let's kind of go into some of these, okay? Just these are things to think about, right? They are words to say to ourselves inside our head, right? In that self talk conversation as we go on about our day, as we're on a walk, as we're exercising, as we're doing whatever we're doing throughout our daily lives. And these relate to real estate investing. And you know, some people, probably most people are going through the day thinking, oh my gosh, you know, interest rates are high and the market isn't what it used to be and all the opportunity is dried up, you know, yada, yada, right? They have all this terrible self talk. But what if the self talk was more like these? More like these statements? I am a successful real estate investor. I attract abundance and prosperity through my real estate investments. I am confident in my real estate investing decisions. I have the knowledge and resources to succeed in real estate investing. I'm constantly learning and growing as a real estate investor. I mean, hey, you're doing that right now, right? So you're definitely doing that. I know you're doing that. Okay? I am capable of achieving financial freedom. I am committed to my financial growth and success. I am confident in my ability to create wealth. Hey, you're listening to the right show through real estate investing. I'm grateful for the abundance of opportunities available to me. And they are abundant, as you know. You've heard me say it before. If you look throughout history, most fortunes are made during times of economic turmoil, right? I mean, look at all of the incredible fortunes that were made like 90 years ago during the Great Depression, right? And then during all of the different recessions we've had. That's when you see all these new companies start up, all these investors buying up tons of properties. A lot of the big institutional investors today really built a huge part of their portfolios following the great recession, right? So, you know, always opportunity. The opportunity is always out there for you. You just have to adapt and adjust. And of course, you have to adapt and adjust your strategy, your tactics. But the first thing you gotta do is adapt your mindset. The way we think, what we're saying to ourselves, okay, where did I leave off?

I'm grateful for the abundance. Okay, we got that one. I guess I could say it again and not just slough it off like that right. But yeah, we'll move on. Okay. I am capable of creating multiple streams of income through real estate investing, right? So I always talk about how income property is a multi dimensional asset class and you get your return on investment. You make your money in all sorts of different ways, right? So you are capable of that. The investment itself will make that possible to you. I'm confident in my ability to create passive income through real estate investing. I am worthy of financial success and abundance. Just saying to yourself that you are worthy of it, right? And no matter where you are now, even if you've already achieved a lot, are you worthy of more? Right? So say these positive statements to yourself when you're talking to yourself all day long. I'm committed to creating a financially secure future for myself and my family. I am grateful for the flexibility and freedom that real estate investing brings me. I am capable of building a diverse and successful real estate portfolio. Look, you've got my 10 Commandments to help you do that, right? Just follow that guideline. It's all there for you. I'm worthy of financial success and abundance. And say, I think I covered that one. But you can't say it too often, right? I'm grateful for the flexibility and freedom that real estate investing brings me. I'm grateful for the financial independence that my real estate investments bring me. I am confident in my ability to do this right, to create that wealth and abundance. We already covered that one. I'm worthy of a life of happiness and prosperity. You know, remember the old sign that Mr. Spock on Star Trek used to do? It's a good sign, that Vulcan sign. Here it is. If you're watching me on video, Live long and prosper, right? Live long and prosper. That's the sign. It's kind of hard to put your hand like that. I guess I can do it pretty well, live long and prosper. So I just wanted to share a few of those. I've got a whole bunch more I wrote down, but since it is kind of that time to do that at the beginning of the year, I thought I'd share that with you. Okay, let's go into some less soft stuff. Most people would consider that, you know, the softer side of stuff, right? But let's look at some hardcore data here. So jumping to the screen and the graph now, if you're listening on audio only, this is a really interesting graph because I have said many times that I really wanted to get more data. Segmenting by price, right? Inventory levels by price, months of supply by price, segment because the market is so different when you're talking about high end homes, middle price homes or low price entry level homes like we like as real estate investors. Because those are the properties that make the most sense, those entry level homes. And you can see there is a massive shortage of these properties. As people that give, you know, sort of lip service to this, they just talk in sound bites and generalizations in the mainstream media that does not understand the real estate market. We see why they don't, right? This shows us exactly why that is true. Because the blue line shows the high end of the real estate market, the high price homes. Now they don't divide what that is, but I assume it's in percentiles, you know, 25%. 25%. 25, 25, right. And so the high end homes, lots more inventory, you can see just slightly over six months of supply. Now that is not considered a bad market by any means. That's considered approximately normal. But even that six months of supply is much lower than it's been at any time since January of 2013. So that's the high end homes, right? That's the high end of the market. But let's just drop right down to the low end of the market. For those watching on video, it's the orange line. And look at this orange line. Less than two months of inventory in the lower priced homes. Just a massive constriction of supply. And this is an up to date chart. These are current stats, right? And you just see that there is a complete absence of homes for sale, especially in the low end market. Less than two months of supply right now as interest rates are high, as some out there are trying to say, the sky is falling and it's just not, it's just not happening. Show me the data. You know, I've been so vocal about this that I am surprised. And by the way, if you disagree, I invite you to tell me why I'm wrong. Like comment below if you're watching on video, if you're not, if you're listening to the podcast, go to jason hartman.com ask, send me links, send me stats, show me some charts, show me some data that say this real estate market for linear market, low priced entry level properties is going to falter because there's just no sign of it. And I know sales are down, I get it, the demand is down, I get it that affordability is down. But also that just puts upward pressure on rents, right? So I mean folks, you see this right here, if you're watching on video, okay? And if you're not, this chart will be on the YouTube channel. And I'm thinking I'm gonna start making my charts and stuff available to our empowered Invest Pro members, which, by the way, we had such a fantastic zoom meeting last night with Rich dad CPA Tom Wheelwright. And thank you for all of those who attended. We will have that replay made available of course to our pro members. That's normal because we have these meetings all the time. But we did open this particular one meeting for the new year. We opened that up to all of you and a whole bunch of you came. So thank you for coming, your participation, your great questions last night, and I think we're going to make that replay available to everybody. Okay? So not just the pro members that automatically get all of the replays in our internal community there. All right, let's look at this another way. Okay, this is the same basic data, right? The same market dynamics, but looking at it differently as we compare the 20, 22 and prior years and we look at the number of months of supply. Now this is for single family homes, but remember, this is all categories, all price categories, okay? And this is new homes, which are very different than the resale market because remember, nobody's building cheap new homes. Entry level new homes are almost non existent. When I say nobody, it is a figure of speech. I always want to make that disclaimer. Hardly anybody like it's statistically insignificant. But, but lots of builders building high end new homes because that's where the profit margin is. Even if they have to come off their prices, give allowances, give credits, pay for closing costs, buy down interest rates, they've still got a nice comfortable pillow, a nice comfortable margin in those homes that they can afford to make deals, to wheel and deal. So the new home market acting very differently than the resale market. And this one shows the exact opposite, right? So it shows that new home sales held up better than expected. And in terms of the data there, you can see on the chart that actually last year is better than many other years. Right. And much better than expected overall. Okay, now the labor market, right? What about employment? We talked about this just recently. I think actually on the last episode I alluded to it, but I didn't have visuals for you. And we've all heard a lot about these layoffs. You know, many think more layoffs are coming. I think they're probably right because we are going to go into an official recession here. I mean, that's what they're trying to do. They're trying to Give us a recession and they're probably going to succeed and we'll see more layoffs. But again, it's a. Compared to what Question. Because many of these tech companies, like obviously Twitter, right. We look at Twitter and all of the Elon changes with, with his management and letting go of all these people. Look, these companies have been massively overfunded, dysfunctionally overfunded. Right. And so they've just been overstaffed. It's kind of like government, right. When you can create money out of thin air and you're the government, there's over employment in that sector. How often does the government lay people off and lean down and right size and get more efficient? It's just not their thing. When you have so much funding and so much money, you just don't really make that a priority. But when you run a real business that has to be profitable and has to run in a more gritty way, like my businesses, you do things better, you do things more efficiently, you make do with real what you have. You exploit resources that maybe people don't think of. And this is very true when you look at the developing world, right. When you look at. Not as politically correct a thing to say now, but you look at third world countries, right. The people there are so innovative. I mean, you know, we like to think in the, in the first world countries, you know, we're rich and we're innovative and all this kind of stuff. You know, I question that assumption a little bit because people who are poor tend to do a very good job of exploiting resources. What little they have, they learn how to use it. They learn how to make do with what they have and to get by. Somehow or another, I mean, you throw a rich person into that environment and they'll be dead. They won't be able to survive at all. And you know, that's why it's a good idea not to spoil your kids. Right? Right. Because what happens sometime in their life, maybe when you're long gone and they have to get by, they have no skills, they have no gumption, they have no motivation, they have no grit. Right. We did a show on grit with the author of the book Grit. I can't remember her name now, but that was one of our 10th episode shows. It was a really good one. So being gritty, being efficient and so a lot of this employment that we have is. It's fluff. It had to go anyway. That's the alchemy of a good well managed economy is to lean down, to get lean and to make those businesses more efficient, those bloated businesses like Fakebook, like Twitter, like all the rest. These companies are just illogically overfunded. They've had way too much money coming at them for way too long. Unfortunately, they've created monopoly positions and it's been really bad for human rights. It's been bad for free speech. They've been very abusive companies. And so it's good to see them lean down and hopefully their monopolies will end and there'll be more of a marketplace of ideas, which is what we need for the betterment of humankind and a good future. All right, so be sure to join us for Empowered Investor Live. That is coming up in just like, I don't know, what are we about to about 20, 23 days away or something like that. So be sure to join us for that. We've got Ken McElroy, Sharon Lecter, Rudyard Lynch, Tom Wheelwright, who was our guest last night, George Gammon, Joe Brown, really a fantastic group. But we've also got a whole bunch of property managers, local market specialists, lenders, all of the people that will help you succeed and fulfill all of those affirmations I started today's episode with. Right, all of that good stuff, that good thinking, you need a team that can help you execute it and make it happen and put it into action in the world. And these are the people who will be there that you can get to know, you can mingle with, heck, you can battle against them in an air guitar contest and you can dance with them, you can eat food and have drinks with them and so forth. So it's just going to be a great time. Go to empoweredinvestor.com live or of course, you can always go to our main site, jasonhartman.com whatever works the best. But we really want to see you there. This event is almost sold out, just about sold out. We're probably going to sell out fairly soon. You just never know because you don't know when people will buy tickets or when they won't. That's something we want you to do. So get your tickets for that. And if you have any questions, if you have any needs, reach out to our team. We are here to help you. You can call 1-800-HARTMAN or you can go to Jason hartman.com just fill out any web form on our and our team of investment counselors is here for you to help you have big success in the new year and really get to that financial Independence Day as soon as possible. And if you're already there because I know a lot of our clients are already there at that Financial Independence Day. Just grow your portfolio more, make your portfolio more efficient, make it easier to manage a lot of content on that. But you know, reach out to us. We're here for you for whatever you need and we look forward to talking with you on the next episode. And until then, happy investing.

Hi everyone. Do you ever wonder why mass inflation is still a threat to rich countries? Some countries are privileged to have stable currencies. As the reserve currency of the world, the US Dollar has enjoyed an enviable position that most countries would die to have have. Except for the 1970s stagflation scare, the US has cruised along without many inflationary hiccups in its recent history. Some countries haven't been so lucky. At one point, Venezuela was one of Latin America's wealthiest countries. In fact, its wealth was so impressive that by the 1950s it became a magnet for migration from countries like Italy, Portugal and Spain. Oil was its primary export, but it had a growing steel and mining industry as well. Its currency, the Bolivar, was one of the strongest currencies in Latin America. In this regard, Venezuela was indeed exceptional because Latin American currencies tended to be very volatile. However, in the 1970s, Venezuela's economic model began to change. In the middle of that decade, its oil industry was nationalized. From there, the Venezuelan state began to embark on massive spending ventures and relied on high oil prices to finance such largesse. But when oil prices plummeted, economic realities set in. Government programs do not come cheap. Eventually, someone must pay the bill. In 1983, the Bolivar underwent its most significant devaluation to date, ending a relatively unblemished track record for the nation's currency. Although many believed that this was a temporary setback, things never went back to normal in Venezuela towards the end of the 1980s. In the early 1990s, the country attempted a series of market based reforms with limited degrees of success. That said, the government could never contain the inflation beast. In 1989, inflation stood at 84%, poverty was growing and the Venezuelan populace was growing restless. Eventually, they took to the streets, with some protesters resorting to acts of violence. The government response was rather brutal, leaving hundreds of people dead. Known as the Caracaso. In 1989, this crackdown was a major turning point in modern Venezuelan history. Venezuela's otherwise robust democracy started to be called into question. To make matters worse, a rising lieutenant colonel by the name of Hugo Chavez launched two failed coup attempts against the government in 1992. Although Chavez was Imprisoned for his actions, the damage was already done. On top of that, none of the country's structural economic problems, such as inflation, were ever really addressed. Inflation reached near triple digits 100% in 1996 and continued eating away at every day Venezuelans savings. By 1998, when Chavez threw his hat in the country's presidential race, Venezuelans were completely infuriated at the political system and pulled the lever for the former lieutenant colonel who marketed himself as the anti system candidate at the time. Unfortunately, Chavez's rule did not fundamentally address Venezuela's economic problem. In fact, his administration arguably made the situation worse, especially with regards to inflation. This goes to show that there is strong institutional inertia in politics. And even when so called reformers come onto the scene, they're unable to roll back the policies their predecessors put in motion. Chavez's successor, Nicolas Maduro, has also failed to tame the country's inflation scourge. According to recent figures from the statistics website Statista, Venezuela's current inflation rate is hovering around 2,300% to 6,000%, which is considered hyperinflationary. From a big picture view, inflation has been a hallmark of the Venezuelan economy for the past few decades. Decades? Here's some perspective. The last time inflation was below double digits was in 1983. In effect, the average Venezuelan millennial has never witnessed a year with inflation below 10%. Here's the thing about economic upheavals. They can wreck even the best of nations and they usually can't be controlled, regardless of who is in charge. There's a lesson here, and Jason has taught you this many times. You can't control the political or economic elements, but you can take advantage of crises and benefit from them. While I doubt that inflation will reach Venezuelan heights, you should always remain vigilant about the U.S. s economic climate. Currently, there are debates about whether the US's inflationary spell will be transitory or more durable. Jason tends to believe in the latter. Nevertheless, you should never lose your cool and think the whole world is doomed. To the contrary, inflationary moments provide a host of new opportunities for real estate investors to thrive in. And they can do so by using Jason's favorite four letter word, debt. In this case he's referring to mortgage, not consumer debt. Consumer debt is a big no no in his book. But taking on a mortgage is a different story. You see, this kind of debt is an asset. When inflation hits first you acquire an income property, then you rent it out to a tenant. In doing so, the tenant picks up the carrying cost of the mortgage. Meanwhile, the mortgage's real value depreciates due to inflation. This infuriates the banks but creates a great opportunity for you. So learn from Jason and take advantage of his inflation induced debt destruction strategy. It's a great time to be alive. For more information, visit Jason hartman.com.

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