2380: Identifying Priorities on Purpose with Andrew Reichardt

This show is produced by the Hartman Media Company.

For more information and links to all our great podcasts, visit hartmanmedia.com hey Jason, just wanted to send you a quick message of gratitude. So grateful that I got into the game and got in with properties that make sense because the rent income keeps coming in. So thank you. Glad we connected and I'm glad to be in the income property game instead of the Wall street game for my future.

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 invest 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.

If I were the devil and wanted to destroy Western civilization, here's how I'd pull it off in 15 simple steps. First, I'd destroy the family. I'd frame men and women as rivals instead of partners. I'd convince people that fathers aren't necessary, children are burdens, and the home is a place of strain rather than strength. Second, I'd turn men into passive consumers. I'd shame drive and ambition as toxic, erase rites of passage and turn potential builders into spectators who drift through life. Third, I'd convince women that their ability to create life is a curse. I'd portray soul as corporate work as liberation and motherhood as servitude. I'd tell them the highest political good is ending a life before it begins. Fourth, I'd confuse children. I'd tell them their bodies are errors, identity is a costume and sterilization is freedom. I'd make sure uncertainty becomes the default state of the rising generation. Fifth, I'd elevate sterile lifestyles as moral ideals. I'd praise same gender unions while treating traditional families as suspect, ensuring the forms that cannot create new life are seen as superior to the ones that can. Sixth, I'd reward vice and punish virtue. Failure would be subsidized in success, Plundered irresponsibility would gain protection, while competence would be treated as a threat. Seventh, I'd turn politics into tribal warfare. I'D divide people by every identity marker available, ensuring they never unite around anything beyond raw power. 8. I'd erode national sovereignty. I'd shift to decisions, to distant bureaucracies, NGOs and corporate bodies voters never chose and can never remove. Ninth I'd convince advanced nations to import populations with no loyalty to them. I'd shame resistance, ensuring civilization weakens itself under the banner of tolerance. 10th I'd poison the food supply and sell the cure. I'd fill diets with cheap toxins, wait for disease to spread, then offer pharmaceuticals that mask symptoms while public health crumbles. 11th I'd demonize energy, the lifeblood of civilization, convince people that abundance is dangerous and regression is moral. 12th I'd corrupt the information stream. I'd replace truth with narrative journalism with activism and debate with censorship. 13th I'd make people chronically distracted. I'd saturate every waking moment with noise until silence and the self knowledge it brings becomes unbearable. 14th I'd detach people from their past and blind them to their future. I'd teach them history is a mistake and that foresight is unnecessary. 15th I'd collapse faith into meaning. I'd convince people nothing truly matters so that when chaos arrives, it's met not with resistance, but indifference.

Greetings empowered investors, and welcome to the United States of Fraud. I shouldn't be laughing about that because it is not funny. But it is wonderful news that all this fraud is being exposed. Now, what does it mean to you as a real estate investor? Should you sell your rental properties and open up a leering center in Minnesota and provide daycare and leering? Right? Maybe that's a better deal. Now in all seriousness, you know one of the real questions here is how much of our deficit and our overall national debt is fraud. It's just fraud. I mean, we have had so many people, mostly the leftist Democrats who have been stealing from us for decades in one way or another. Now, is the stealing illegal? A lot of it is, but some of it's just legal theft. It's legalized theft through all kinds of entitlement programs, welfare programs, fake disability claims. I guess that's fraud. All kinds of stuff, right? But the point is, how bad is the irresponsibility problem in the country if you remove the fraud and the crookery and the crony capitalism and all of this crap? Well, it's probably much better than it looks or better than we thought it was before all of this fraud came out. It Minnesota, California, Massive fraud. Bastions of the country, right? All leftist controlled it's just insane. It's totally insane. Folks. You know, some experts are estimating this to be $2.5 trillion. That's with a t trillion in terms of fraud activity. So just think about how that impacts our budget, right? How much better the country may be in much better shape than we think it is if we just clean it up and clean up the frau. And that is the direction we're going in. Oh, I know, it's way too slow for me. I mean, what is the problem with Pam Bondi? What is the problem? When is she going to arrest some people? I mean, it's just, it's just taking too long and I do not know the answer to the question, but at least it's being exposed. And that is a good, good thing. We're also in the era of massive and total American preeminence and leadership. I mean, think about all of the great stuff that has been happening lately and think about what that means for capital flight and what that means to you as a real estate investor. That is very, very good news, folks, because the US Is still looking like the best looking girl at the ugly dance, right? We have got all of these currencies that are ultimately a race to the bottom. Although interestingly, inflation has been very, very low lately. All of the doomers that said the tariffs were going to ruin the economy, it's going to crash the economy, it's going to make inflation go rampant. No, we're simply charging admission to our consumer market, the biggest consumer market in the world. So, gosh, I don't know. There's just a lot to talk about. Join us for our monthly masterclasses on the second Wednesday of every month. Jasonhartman.com Wednesday to register for those. We did a great one on Atlanta Co Living last time. That was what, last week? Week before? I don't know, last week, I guess. Anyway, do not miss those because we're really putting a lot of effort into those and we're doing some very good content. I tell you, things are just going very, very well. They are going in the right direction. We are on the verge of seeing lower rates. We're already in the easy money era. We already saw rates tick down on owner occupied to the fives. Yes, we got under 6% in terms of mortgage rates. That's amazing. Trump's speech at Davos just today.

Wow.

If that wasn't just a rock star performance, I don't know what I could say. We're going to be in control of the hemisphere. We'll have real estate opportunities in Greenland soon. Just kidding. Probably not, but you know what I mean. There's just a lot of very, very positive things going on. I know some of it is just angry. It makes me angry. Probably makes you angry too, because it's being exposed, right? When the. As. What does Warren Buffett say? He says when the tide goes out, you can see who's swimming naked or Charlie Munger said that, I don't know. But that's where we are. We're seeing a lot of this fraud and this decept, disgusting stuff. Just exposed. Sunlight is the best disinfectant, right? Once it's out there, you can't put it back in the box. So whether or not we have enough prosecutions and indictments, we will see. That's been rather disappointing. But it's moving in the right direction, albeit very, very slowly. In terms of the market, inventory is down from the path it was on previously. I've got tons of charts and things to show you. I didn't have time to get them all ready for you today, but it's looking like it's going to be a great year. Activity's way up, I'm glad to say. Our business is much better. So that's good news for us and that's good news for investors as well because activity is definitely up in terms of transaction volume, prices, you know, still kind of boring, but I think we're going to see some better appreciation this year than last year. Although that's nothing to write home about because last year wasn't any kind of miracle. Depending on what survey you look at, it was about one and a half to 2.2% appreciation. But what is incredible too is these new performas that we've updated. So it is more urgent than ever that you listen to this. Go to propertytracker.com get a free account, no strings attached. Just get a free account. Take five minutes and do a hypothetical or real pro forma on a property. This is the one year pro forma. It's one page. It's simple to read and understand and use and do. And what I want you to do there is I want you to take a property. Maybe it's a property you have or property you're thinking about buying, or just a hypothetical property. Just make it up. And I want you to put in the standard assumptions. You know, 3% inflation, 6% appreciation, 8% management fee, whatever. Right? Just those standard assumptions. But then I want you to do something else. I want you to save that pro forma and then I want you to do a second pro forma where you change one number and maybe the number is make the expenses higher, make the rent lower, make the vacancy rate higher. Because now that we've added inflation induced debt destruction, my trademark strategy, inflation induced debt destruction. Say it 10 times fast, you will see that you can literally make money on a vacant property. It's incredible. It's a multi dimensional asset class and the opportunity because the dynamics of the multi dimensional investment are so powerful that you can make money when you think it's going poorly. It's just amazing. I mean, that's all in there. Now we added rent to value ratio, we added inflation induced debt destruction. We put that right below mortgage pay down where the mortgage or the equity buildup through the tenant paying your mortgage for you is there and inflation paying your mortgage off as well. It's incredible. And I'm saying this in an era of low trump inflation. I mean inflation is quite tame right now. So that inflation induced debt destruction is not as good as it used to be. But look, the future is largely going to be inflationary. I mean there's so much pressure, $38 trillion in debt, probably half of it fraud from these disgusting criminals. But the debt is there. You know, it's just incredible. There's just a lot of amazing things. One thing I haven't had time to talk to you about much is the genius act. That's the cryptocurrency thing. And not what that means for cryptocurrency, but what it means for the US dollar and what it means for inflationary pressures going forward and reserve currency status and the US continuing to be the leader of the world. That genius act was probably so much more brilliant than anybody thought in the way they are making stablecoins become a proxy for the US dollar. It's truly incredible. I mean, I've talked about it a little bit. I should do a whole masterclass on that. One of our Wednesday masterclasses. We'll certainly talk about it in the Empowered Investor Pro group. Those are the first Tuesday of every month for members. But anybody can come to our masterclasses on the second Wednesday of every month. Just go register for those Every single month. Jasonhartman.com Wednesday do not miss them. And if you're a pro member, you have access to the recordings. The co living one that we did just recently was, was phenomenal. I think that the co living opportunities are the best thing I have ever seen in my entire real estate career. And I have had a very long career. Okay. I Got my real estate license when I was 19. Bought my first rental property when I was 20 years old. So it's been a long, long time and a galaxy far, far away. So definitely take advantage of all these resources we have. The vast majority of them are just free. Okay. So why wouldn't you take advantage of them? They're free. Get your property tracker account. Join our masterclasses. Take advantage of that. It is a 10th episode show today, so we've got a. Remember every 10th episode we do a non financial. It's always financial because it always circles back. It seems like one way or another. Right. But we do a topic of general interest and we're going to do that today. So let's go ahead and get to that interview right now. It is my pleasure to welcome Andrew Reichart to the show. He is the author of Priorities on Purpose, A blueprint for living with clarity and focus. Andrew, welcome. How are you?

Jason? I'm doing great. Thanks so much for having me on the show.

Good to have you. And you're coming to us from Pittsburgh, right?

Pittsburgh, Pennsylvania. The old steel town.

Yeah. Yes, exactly. It's pretty amazing how some of these cities, certainly not all of them Rust belt cities, are kind of coming into a whole new life and a whole new era. It's exciting for sure. But hey, you are a successful real estate investor nowadays. But in the old days that wasn't the case necessarily. And you wrote this great book and really have a different perspective than many do about finance and money and kind of the overall meaning of life, I guess. Right?

Yeah, for sure. And I'm happy to unpack that. I really lived most of my life, I would say, as a boat without a rudder. You know, I just was zigging and zagging wherever the wind blew me. And yeah, it caused me to get expelled from high school. It caused me even after college to spend a weekend in jail after, you know, making some bad decisions and, and a lot of that was self inflicted, but there was also some non self inflicted adversity like being diagnosed with cancer at a young age. So all of those experiences really opened my eyes to, hey, why am I really here and what am I actually trying to do with my life?

Yeah, yeah, well, you know, getting in trouble with the law and so forth and at school, you know, that's one thing that happens a lot. But then adding to it, a cancer diagnosis at a very young age, you're about 5, 30, that really can change your perspective. Right. So kind of tell us about that journey if you would. And why was that such a catalyst? Oh, I mean, I guess not why, but how was it such a catalyst?

Yeah, well, I, you know, in 2012, resigned from a really great corporate job that I had to pursue my passion of real estate investing and, you know, running this real estate firm. And so I was just doing that on my own, you know, went from a nice salary to $0, you know, in salary. And I did that on my own for about two years. And during those two years, I got engaged and then I got married. And in our first year of marriage, we're less than a year into marriage. You know, I go to the doctors and they say, hey, you've got cancer. And, oh, by the way, you might not be able to have children. And it was terrifying. It was like, oh, not only, like, I could die, and not only could I die, but I could die, you know, without kids. I could die soon. Much sooner than I expected. So it was eye opening. And one of the interesting things is that same year, my wife resigned from her job to come join me at work. So as I was going through chemotherapy, like nine weeks of grueling chemotherapy, day in and day out, you know, at the hospital, getting the drip, I, you know, lost all my hair. Really had a huge impact on me physically, but also had a huge impact on me mentally and emotionally. And my wife was there with me day in and day out because she was now working with me, and we were in the hospital just going through it together. So it's really, really an impactful experience.

Yeah. So this is at age 30, right?

Yeah.

And you were already in real estate at the time, right?

Yeah, I had just kind of started.

I had.

I had been investing in real estate for about six years, but had just launched my own company about two years prior.

Okay, and so were you successful from a monetary sense, by that point?

I'd say no. I was still kind of figuring it out. Honestly, I had. I had got myself to the point where I had 20 units and I was managing them myself, and I started to, you know, taking a little bit of outside capital to. To grow, but candidly, it wasn't enough to pay the bills. I had developed a little bit of a nest egg for my corporate job, and I was kind of just burning through that.

Okay, tell us about some of the principles of the book and how this led you to a new way of thinking.

Yeah, so I would say the main, like, cornerstone principle of the book is, you know, you've probably heard Simon Sinek say, start with why.

Right. That's a great Video, by the way, if you haven't seen it on YouTube, which is great.

And no, no disrespect to Simon. I think I. I think he brings up a lot of great points. But I think before you can get to your why, you have to kind of start with who. And what I mean by that is what is your unique DNA? So never before been created, never going to. Going to be creative. What's unique in Jason, what's unique in Andrew, what's unique in every listener that makes them, you know, good at some things, maybe not so good at other things. And how does that then inform your why? So basically, the principle that we, that we talk about, and the way I actually developed this, by the way, is I never meant to write a book or put this out publicly. We actually started doing this with our employees. So we have 100 employees. We help them first understand their who, what's their unique DNA, and then their why. And then we look for what's called convergence, which is really the convergence of their purpose, their passions, and their proficiencies. And that convergence is what we try to get our employees into. And we found that by doing that, we have top 1% employee engagement in the industry. Our employees are just super engaged. They, they love what they do, they love their work. And so I just took those principles and put them in a book for, for others to kind of learn from as well. So, first of all, what are we really after? So we call this the Rhino operating system. And similar to how so we run our company on eos, the entrepreneurial operating system, which I'm a big advocate of. And we say, hey, run your business on Eos, run your life on ros. And the Rhino for us is this picture of two things. One is alignment. So you're aligning your life to where you're charging, where you want to go. And two is resilience. You have this thick skin to withstand life's adversity. So again, if you just look at my life early on, I didn't have that alignment, and I was taking on a lot of life's adversity. And so that's really what it's about. It's about being a Rhino, having that thick skin and that alignment. So there's really five components. The first is kind of know thyself. So know your who, what makes you uniquely you, and thinking about your strengths, your weaknesses, your core values, and then that kind of leads into your why. So your why is really, I always tell people, you have to take a step back and ask the Question, when I am no longer here, how do I want to be remembered? What do I want to be said of me when I'm no longer here? Very few people take a break to actually answer that question. Yeah, and we were talking about capital. I think capital is a piece of that. And you have to kind of ask that question, hey, when I'm no longer here, you know, what is the impact that my capital has had as well? And then that leads.

So if assuming your money lives beyond you, what is it doing after you're gone? What are the things you've taught, the lives you've impacted doing after you've gone? Right.

Yeah, exactly. And we were talking a little bit about, you know, the concept of die with zero.

Right.

And so many people. And by the way, I've been guilty of this as well, work incredibly hard to make a bunch of money that, you know, they're just going to leave to people that they don't like or maybe their children, which, by the way, proven. Proven to be detrimental. And so, you know, the. It's during the lifetime. How can you actually optimize your life during your lifetime? And we call that convergence. It's the convergence of your purpose, your passions, and your proficiency. So that's really. How are your roles and your responsibilities? For me, that's, you know, a father, a husband, you know, CEO of 100 employee, company, podcast host, elder in my church. You know, whatever it is that all the things you're doing, how are they all aligned with your purpose, your passions, and your proficiencies? And then once you've achieved that, we've. We say, okay, now you've identified your alignment, then it's about executing on alignment. So the last two components are how. How do you actually execute rhythm rhythmically, and then when. How do you actually optimize your energy and when do you do those things? Throughout the day, week, month, quarter, year. So those are the. The five components. That's really the system that we've been teaching to our employees for the past two years. And that's really what the. The book is about.

So talk about the rhythm and how you align energies rhythmically overall, and then drill it down to the daily. Because that's. That's really interesting.

Yeah, yeah. So I believe every day, week and year has a rhythm, like an energy rhythm to it. So the day is actually really probably the easiest to understand because we all have these things called chronotypes. And I give a lot of credit to the sleep doctor who has a quiz online you can check out to understand Your.

That's a friend of mine, owns that company. Yeah, yeah.

Great. Yeah. And I, I think that the, the research there is pretty impactful in terms of really understanding, hey, are you a morning person? Are you a night owl?

Yep.

And how does that impact, you know, when you're best and when should you take a nap and when do you need energy? You know, when do you need to be doing activities that actually recharge you versus when should you be doing activities that are a little bit more, you know, kind of in your zone of deep focus and so thinking about your day, not just letting your day happen to you? You know, so many people say, well, you know, I work 8 to 5 and I show up and I punch the clock and I'm really tired by the afternoon. What if you can actually design your day in a way that takes your unique DNA and optimizes a day and a schedule that is perfectly aligned with who you are and your why and really aligns that into your energy rhythms?

Yeah. Okay, so. So it's the start with who and the first who is you, right? Yes. And then go to the why where Simon Sinek starts. Give us an example of this. I mean, is it just morning person, night person, or. There's probably more to it than that.

There is, yeah, there's a lot more to it. And it has a lot to do with your unique job too, which is like, your what? So the entire book is, you know, successive. You go chapter to chapter. You can't just like kind of start with the when. But once you've, once you've kind of really identified this four, first four, and you're getting into the when, it becomes more apparent, you know, how can you really schedule your day around those prior components? So it's more than just, you know, morning person, night owl. It also has to do with, you know, when should you be thinking about having coffee or taking a nap or like, do you want to bring your best to your work or to your family? Like, that's a, that's a serious question.

To ask because that really a trade off.

It's, it's a good question for some people. It is. I'll give you an example of myself. I was always working really hard, day in and day out. I would just burn myself totally out. And then I would get home and my kids would jump on top of me and want to play and I'm just exhausted. I'm just totally exhausted. And so could I do something different to make that not the case? What if the last hour of my Work day. I was actually recharging myself so that when I go home to be with my family more recharged. Now that is a trade off. I would have to not work that last hour or do something different, go for a walk, whatever it is. But I think that those, those little tweaks, those little decisions. Now, it really does depend on your who and your why not? Not everybody is going to care about those things the way that I had. And they might have different preferences and priorities there, but that's why the book's called Priorities on purpose. Like only you can set your own priorities. And that's what then filters into you, figuring out, you know, really how to schedule your days.

Yeah, very interesting, Very good. Why real estate?

Great question. So I'll tell you a little bit about my journey to kind of falling in love with real estate. I grew up with my mom, who rented a house and still rents the same house that we grew up in. So she's rented the same house for probably 50 years. Probably could have purchased two of them. And at the time, I remember just thinking, oh, there's a landlord out there. And that landlord has like power over our situation. You know, if the, the leaky faucet is leaking for a couple months, it's not a lot we can do about it. You know, got to ask the landlord to take care of that. And so it was really in college I read the book Rich Dad, Poor dad, and I started to think about this, you know, kind of rich dad mindset. But in particular, what really attracted me to real estate is the impact that it could have on people's lives. So I've always viewed real estate as a means to an end, not an end in and of itself. And so what attracts me to it is we get this opportunity to be a different kind of landlord, to, you know, provide dignified housing and to serve our residents in a deep and meaningful way. And it's like, it's just so cool. It's the fabric of what is around us. It's the roof over our head. It's the place where we go to work, and it allows us to really have an impact in people's lives in a real meaningful way.

Yeah. I think that as real estate investors, a lot more of us should really think of that. I mean, so many people listening. I know I've done this myself, for sure. And most people have. You know, they've certainly thought about or they've visited the places they used to live, the place they grew up in. Right. You know, they went back to their old house. Right. And just think of all the memories and all the experiences that are generated out of place, you know, and we provided that place as a landlord, that has just a monumental impact on these people's lives. So people really need to consider kind of the weight of that in a good way. You know, it's an honor to be able to do that. Right. To be able to provide that housing to people and the place that they will just have so, so many of their life experiences. They will always remember. I mean, everybody pretty much always remembers all the different places they lived. Right. And you know, that. That's pretty powerful. It's a. It's a pretty big responsibility, too.

Yeah. It's really the principle of stewardship. You know, it's. We're not just owning these things, we're stewarding them.

Yeah.

That gets back into this legacy question. It's like, hey, none of this stuff is coming with us. You know, we're no longer here on this earth. There's not a U haul behind a hearse. You know, it's like, it's really this principle of stewardship. So what are you doing with it while you're stewarding it? And that. That really is what I find to be a really impactful question.

Yeah. I remember a sermon maybe 30 years ago at my church in Newport beach, and the pastor said, you know, we're just a trustee from birth to death. That's it. You know, and after that, someone else is going to control all these assets and, you know, how well do we manage them when we have control over them? Right.

Yeah. And that's really stewardship.

Absolutely. Good stuff. Well, give out your website.

Yeah, sure. So the book is ROS Journey.com. so ROS is in Rhino Operating System Journey.com. my real estate company is Burgo Capital B I r g o capital.com.

Good stuff. Well, Andrew, thanks for joining us.

Thanks, Jason. Appreciate it.

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