2386: The Seven-Year Creating Wealth Plan through Income Property

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You'Ve got the best podcast going. Jason, I love your show, man. It's good stuff.

Thank you. I really appreciate it.

What I wanted to share was I, my wife and I, for the first time ever, paid effectively no income tax in 2022 through doing a cost segregation study and generating about a $200,000 paper loss on our real estate. I'm a real estate professional and it really works. It's magic.

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 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 estate investors.

Welcome to episode 2386 and empowered investors. Have I ever got a treat for you? Today we've got totally new information here for you that will really, really help you directly see with math. Math. You know, they say the numbers don't lie, but actually that's not really true. The numbers do lie sometimes. There's a great old book called how to Lie with Statistics, but we're not doing that today. This is legit stuff. So, so we're going to dive into your seven year Creating wealth plan. This is a plan where you can just create so much wealth with income property. Remember, I've always talked to you over the years about the iceberg. Most of the iceberg is below the surface of the water and it is very hard for people who are not in the know who don't get it about income property and why income property is the most historically proven asset class in the entire world. They just don't get it. They don't understand it because they don't know how to do the math. That's usually the biggest issue. So we're going to do the math, but we're going to do something very different today. We've never done this before except last night when I presented some of this information to our empowered Investor Pro Group. We meet once a month, we have a zoom meeting and it's yours truly and a small group of empowered Investor Pro members join that program if you would. A lot of great resources there for you to help you create wealth. But we're going to take the most important performa we have, which you can do for free. Just go to propertytracker.com, set up a free account account. Of course you can set up an upgraded paid account if you want, but you really don't need to just get the free account and use that free account to do these performance. One of the best decisions I ever made when I started as a nationwide real estate investor 22 years ago now, I was an investor long before that, but I was only investing locally and I was not really very good at it. You know, I was sort of speculating and I thought I was investing. But now, and you know, since about 22 years ago, I've become a real investor because. How do you define an investment? Well, an investment in my definition produces income. If it does not produce income, it is simply a speculation or a gamble. You want things to produce income. Now, does that mean it has to produce positive cash flow? Not necessarily. Why? Because with some asset classes, we get to use a lot of financing, so we get to buy now and pay later. And if you don't pay for the investment, it may perform differently because you have to pay for the debt service. But the wonderful thing among many wonderful things about this multi dimensional asset class of income property, which makes it the most historically proven asset class in the entire world, is the multidimensional nature and the fact that we're essentially doing a leveraged buyout. Now, you've heard LBO or leveraged buyout used on Wall Street. That's what all the corporate tycoons have been doing for decades. It became really well known in the mainstream in the 80s, in the late, probably the late 80s. And all those big names, Carl Icahn, T. Boone Pickens, all their. Ivan Boesky, all the rest of them, right. Their best strategy was the LBO or the leveraged buyout. And when we buy a rental property, that's essentially what we're doing. We're doing a leveraged buyout. How did that strategy work on Wall Street? Well, here's how it worked. You find a company to buy, you find an asset. Could be a property, right? But in their case, it's a company. And as part of the acquisition, you load that company up with as much debt as you can possibly get. On the company, you just saddle it with a lot of debt and then you acquire the asset and you tell the asset to pay the debt. You don't pay the debt, you tell the asset to pay the debt. That's exactly what we do with income property. And that's one of the many reasons, but not the only that it is so incred. Powerful. So let's dive in to your seven year creating wealth plan and we're going to look at some real specifics. Now if you are listening to this on the podcast in audio only format, I highly encourage you to listen to this show not once but twice. I think you should listen to it right now. And this is exactly how I study with audiobooks because I usually listen to the audiobook first and then I get the book either in ebook format or in printed format and I look at the graphs and charts and I find at least, you know, I'm not an expert on studying or the techniques. There's lots of experts on that. But for me that's really powerful because I review it as an audiobook first, which you're doing with the podcast. And then I go back and I look at the book and I look at the illustrations and the graphics and the charts. You know, I study a lot of econ books. Right. You know, that's really chart heavy and visual heavy a lot of times. So I find that to be a very good plan. So listen to this podcast and then watch the video on YouTube or rumble or any of the video platforms. Okay, so let's get into this. It's going to be good. I hope you're excited. So first of all, we take our pro forma. One of the best decisions I ever made 22 years ago is benchmarking my data, standardizing my data. And you've got to do that too as an investor so that you don't have to be a detective on every deal. Now, how did I do that? I used the property tracker software. I started using it back in 2004 and I liked it so much I bought the company. I suggest you use it. When I bought the company, I made it free. So just go to propertytracker.com, get a free account. You can do these yourself. You can play with the numbers, you can change the numbers, all kinds of stuff. It's really easy. This is the one thing that will really, really make you a very good investor, is running the numbers and using the Performa. So the most commonly used Performa is the one we're going to use today is the one year projection. And it always has assumptions. So these are the assumptions we're using throughout the seven year plan that we're going to be discussing today. And these assumptions are very conservative. Now, there's no shortage of sleazy operators in the world. In my business, there's a lot of sleazy, unethical players. And what do they do? Well, they don't use conservative assumptions. They assume the property will be occupied and the tenant will be paying rent on time 100% of the time. That's just not the way it works in real life, folks. You're going to have vacancies, whether they be physical vacancies or economic vacancies. What's the difference? Well, a physical vacancy is when the house is vacant, okay? But an economic vacancy is when the house is occupied but they're not paying rent, okay? So either one of those is not good. So we assume that the property will be vacant one month every year. So that's about an 8% vacancy rate. We assume moderate appreciation of about 6%. Now, some years, like last year, the market was terrible, okay? Last year you only had, you know, depending on what survey you're looking at, 1 to 2% appreciation. But you know, during the COVID era, you would have seen in, I don't know, year and a half, two years, depends on what survey you look at always, because they all calculated a little differently. You would have seen anywhere between 49 and 55% appreciation. Okay? Of course, this also depends what markets. I'm just talking broad national, generic numbers here. All real estate is local. Always know that. And then what will the inflation rate be? We've added the inflation assumption that you can see right here of 3% to our performance. Why did we do that? Well, there used to be no inflation assumption. And we added that because we also added my trademark strategy into the actual performance. So you can see the math. It's called, of course, inflation induced debt destruction. My trademark strategy that I've been teaching for 22 years, that's now in the Performa. You can see the math, you can see how much that is increasing your wealth every single month. We assume here on this example, property, $86 a month in property management fees. Now this example we're going to do is simplified, okay? There's no way we could go into every number, change every number. It's a simplified example. Just understand that from the beginning. And real life may well be different. So what I'm going to do is I'm. We're just going to take the totality of it. We're going to show you very, very, very, very good return on investment here. But then we're just going to cut it in half and we're going to say, what if it only goes half as well as we expect and it's still going to be pretty good. You're going to like it either way. And the reason income property is the most historically proven asset class in the entire world is that it's a multi dimensional asset class with very special characteristics. Most investments, the whole strategy, buy low, sell high, precious metals, non dividend paying stocks, cryptocurrencies, right? And I know there's creative things you can do with things, okay? But I'm just doing it the way most people do it, okay? Buy low, sell high, dividend paying stock, buy low, sell high, get some dividends in between income property, you make money at least six ways, okay? It can't be matched. It's a special asset class and that's why it's the most historically proven asset class in the entire world. We're going to assume for all of the years until year seven that the maintenance percentage, this is a brand new home, by the way. Brand new single family home in one of our markets, that's what we're showing you is 2%. Okay? 2% of the income is dedicated toward maintenance. Now let's get into it. So here is the first year Performa. This is the acquisition year. This is the year we buy the property. Now I'm going to blow these up for you by cutting the Performa page in half and showing you a screenshot of both halves of the page so you can see the numbers. And if you can't see the numbers, don't worry about it. If you're listening on audio, I'm going to say most of the important numbers and highlight them for you. So here's a property that's a brand new single family home that makes a good rental property. It's almost 1800 square feet. It's priced at 263,990 with 25% down. You're going to need with closing costs a little over 75,000 to acquire this property. The projected rent is $1,800. Now that gives you an RV ratio or a rent to value ratio, something we also recently added to the property Tracker Performa of 0.7. And by and large, ideally we want to get 1%. And in some markets you can even get better than 1%. But you can't do that anymore. Look, as Yogi berra said the future ain't what it used to be. Well, I'll add, I'll modify his saying and say the present ain't what it used to be. You know, prices have gone way up and rents take about three years to catch up. So we are still in that cycle where the rents are catching up to the prices. And really the past couple of years the rents have even been pushed further behind because of the collapse in the multi family apartment market, which has been very tough. I mean, people have lost fortunes in the multifamily market. Syndicators have ripped people off, they have over promised and under delivered. It's terrible, okay? It's really bad. And that market is starting to heal pretty nicely. So give it a little time and it's going to be healed. But why did that affect us as single family home investors? I like single family homes. It's my favorite asset class. Well, the reason it affected us is because they have been making deals and they have been offering incentives that have been sucking some of our renters out of the single family market into these apartments. They would rather rent a single family home, but the deals are just too good to ignore. So that has forced the rents to be a little soft the past couple of years. But folks, that's all changing. And with our new Fed share, we are moving into an easy money market. You know, whenever, whenever the money is easy, meaning lower rates, more availability of financing. Look at the mcai, the Mortgage Credit Availability Index for that. Because there's really two factors in easy money, right? And there's also qe, right, which makes the money flow easier and the borrowing easier and all of that stuff. So when we're in that type of market, asset prices almost always go up. I mean, I don't want to say always because someone's probably going to say, like my friend George Gammon, he would pick at that, right? He'd say, well, Jason, there was a recession in 1946 and you know, it didn't happen then. Okay, George, you know, it's only 70 some odd years later or whatever, right? But I never want to say always, right? I don't want to be that, that direct about it. But you know, that's the trend, right? Easy money causes rates or causes asset prices to increase. Now for simplicity's sake, in this example, we're looking at interest only, fixed rate loan. We're going to just do a very round number and say it's 6%, you know, subject to qualifying. I'm not saying you can get that today. We're just making a simplified example here. Okay, It's a simplified example. Just understand that we can't really like agonize over every number because we got to look at it over seven years and we're going to cut it in half at the end, okay? So it's going to be a throwaway. If you think some of the assumptions aren't conservative enough, which I think they are, just cut them in half, okay? You'll still be happy. Here we go. $1,800 a month rent. We've got our vacancy losses and giving us operating income of about 1,650 bucks. Okay, so here's the second half, the bottom half of the Performa. We've got our expenses here, taxes, insurance, HOA fees, all of that good stuff. And here, this property is projected to have a $288 per month positive cash flow, almost $3,500 per year. And here is the new thing we've added, inflation induced debt destruction. And this is showing you that inflation is essentially paying off almost $6,000 per year on this mortgage. Remember, how do we calculate that 3% inflation would make that almost $6,000. So it's 59.40. And if you divide that by 12, that's 495 per month. So inflation is this hidden wealth creator that is making people richer and richer and richer. Because you borrow the dollars today at today's dollar value and inflation debases those dollars so that you get to pay them back or really your tenant pays them back for you. It's a leveraged buyout. Remember, it's an lbo, just like the Wall street tycoons use. Same idea here. They pay the debt back at a cheaper rate after inflation has debased the value of it. Now, this math is actually not as good as real life. Why do I say that? Because inflation induced debt destruction debases not one, but two things. It debases the overall mortgage balance, which is what we're calculating here, but it also debases the monthly payment on the mortgage. And I've shared with you over the years the example of my mother buying her first house in West Los Angeles, Angeles, agonizing over how the payment on that house would be $416 per month. I remember as a child overhearing her conversations with adults about how am I going to make the payment? It's so high, I don't think I can afford it. Yada yada, yada, right? Okay, so I heard this conversation many times. But in reality, what happened is after a few years, three, four, five years of inflation induced debt destruction that she didn't even know was helping her, that payment felt lighter and lighter and easier because $416 was more burdensome at the beginning and less burdensome later because inflation had debased it. So we're only debasing the balance, not the payment here. So it's actually, this example is actually better than we're showing it to be. Alright, so the return on investment, all Things considered, the first year is 26% annually. But if you add in the 495 per month or 5,940 per year for inflation induced debt destruction, we've now added that we're calling it IIDD for short because I know it's a mouthful that is now 34% annually. And I know you're thinking, some of you that don't get real estate, that don't understand income, property is the most historically proven wealth creator in the entire world. It's the most tax favored asset class in America. Nothing becomes, you think, oh my God, those returns are just too high. It's too good to be true. No, it's not. Okay? And if you think it's too good to be true, just cut the numbers in half. That's what I'm going to do for you at the end of this. Okay? Just assume it's only half as good as we're talking about. But remember, it's a unique multi dimensional asset class. And that's why you can earn those kinds of returns. Because six things are driving them. Not one thing, not two things, not three, four, five, six things. Six things are driving those returns. And that's why it is so phenomenal. I mean, you know, you've listened to my shows maybe where I talk and I haven't talked about this enough lately about the ultimate investing equation and the ultimate investing equation. Go back and listen to those episodes, please. I mean, I've been teaching that for, I don't know, easily 14, well, no longer than that. Probably since 2008. Okay, when I started teaching the ultimate investing equation. And that shows you how unique and multidimensional this asset class is. All right, I don't want to get on another tangent here. Let's go to year two. Let's look at year number two. Now remember, we already acquired the property. So in year two we don't have closing costs because we already own the property. So here you see the zeros in the closing cost area because we already own it. We had to Pay them. The first year, we had about over $9,000 in closing cost. Now we own it. And we're assuming here that the rents grow at 4% annually. 4% per year. That's what I think you should target at as a rent increase. Now, can you always get it? No. The past couple of years, you know, it's been really tough to raise rents. But usually think about it this way. If the rent is $2,000 per month on a property and you raise the rent by $80, think about it from your tenant's perspective. How much will it cost to move? How much will it cost to reconnect utilities and, you know, pay to set up the cable and to set up the electricity and to set up the gas and to set up the water and all of that stuff. That'll cost more than 80 bucks per month, right? To do all of that stuff. So you can get rent increases. But some years they're much better. I mean, during the COVID era, we saw rent increases in some markets of over 15% annually. Over 15%. So it's ups and downs, but we're just going to average it at 4%. So now our rent went from $1,800 the first year to 1875 now. So 4% modest rent increases, and everything else is the same. Return on investment here, 30% annually for the base return, and then with inflation induced debt destruction, 39%. In the interest of time, I'm going to speed through some of these performance. This is now year number three. We raised the rent another 4%. It's now 1950. Oh, by the way, let's look at our cash flow for this year, okay? Because it goes up. Our cash flow is now 423per month. See, here's the problem we have with income. Property. If we go back to the first year, and here's year one, when we buy the property, look at the cash flow. 288 per month. And sometimes it's not even that good. Depends on the property. And people think, why would I Invest, you know, $75,000 or whatever the amount is to get 288 per month? And they think, this is not good. I'd rather just put my money in the stock market. The modern version of organized crime. That's Wall street. The modern version of organized crime. They say that because they don't know how to do the math. They just don't know how to do the math. It is very important that you, as a savvy investor, know how to do the math. That's what we're doing today. All right, so we started year one at 288 per month. Let's move on here. We were in year three, and now our cash flow is projected at 423 per month. Remember, every year our performance has one month vacancy. You know, usually you'll have a tenant. Once you get a good tenant, they'll stay for a few years. My mother and I don't even know if she still has this tenant. I got to ask her. But she's had one tenant in a property she has for over 30 years. The guy has stayed. He's a great tenant truck driver. He's fixed up the property. I think she said he replaced the carpet and did all kinds of things to the property over the years. And he's been renting that property for years. The longest tenant I've ever had, nine years. I had a tenant stay nine years once. And some of these tenants will just stay a very, very long time. So we're assuming one month vacancy per year. Maybe it's better than that. But maybe in the beginning you have two months vacancy and then you don't have any vacancy for two years. Right. You know, people in a single family home, they usually stick around a while. They don't move every year. Like in apartments are very transient. With apartments, single family homes are different. Okay, so our return here, 32% annually, 41% with inflation induced debt destruction, Our cap rate keeps going up, it's now 6.4%. Our cash on cash return keeps going up, it's now 8%. And look how much better this gets. See if you're willing to be patient. And by the way, the winners in life in any field, but definitely in investing, are the people who can delay gratification. They are the people that can wait. They are patient, they are consistent, they stick with it. You know, so many people, we've seen them over the years come and go. You know, they get all excited about real estate investing. They start, they buy a property, they buy several properties. I don't know, you know, they might buy 10 properties and then they have like the first bump in the road, the first problem, and they're like, ah, I don't know, this real estate thing, it's not for me. I give up. And they say, well, I want to sell my properties or I'm not going to buy anymore. And the wealth that is being created, like that iceberg, most of it below the surface of the water. You don't get this in cash every month, folks. It's wealth creation. That's what we're getting here. And there's so much going on that they're just not even aware of because they don't know how to do the math. So that's why I'm teaching you how to do the math. Okay, let's move on to year number four. Here we go. Now the rent has increased again. It's now 2025 per month. That's not the year 2025 per month. 2025 per month. It went up 4% every year. Look here, our cap rate went up a little bit more. Our cash and cash went up by a whole point. We're up at 9% now. Our inflation induced debt destruction is chugging away here, making us richer and richer every single single minute. There's inflation. By the way, let me talk to the about the inflation rate for a moment. If you get a free property tracker account, you can put your own inflation rate in. You can make it 1%, you can make it 5% or 10% or whatever you want. We all know that the government understates inflation on purpose. With the current administration, it's been pretty low, but it was really high a couple years ago. We all remember that. And so that will vary over time. But it's pretty safe to say that the real inflation rate is, is at least. Most experts will agree that the real inflation rate is at least at the bare minimum, 50% higher than the government tells you. So if they tell you it's 2%, it's really 3% and it's probably double. Okay, but we all have our own personal inflation rates because we all have different spending patterns. And you know, it's complicated. I've taken very deep dives and analyses into that on prior episodes, so check those out. But here in year number four, 33% annually for our base return on investment. And with IIDD 42%, same assumptions. Let's keep going. Year number five, we raised the rent again. We're now getting 2110 per month, by the way, on the 4%, we're slightly rounding off. You know, like I think the Last one was 2080 or something on one year or 2082, we made it 2080, we rounded down on that one. So slight rounding just for simplicity. Okay, here we are now looking at a 34% base return on investment, 10% cash on cash return. It's getting pretty good. 43% with inflation induced debt destruction and cash flow, the number the novices look at because they don't understand what's happening below the Surface. Remember the iceberg. What's above the surface of the water? I'd say two things that most investors pay attention to, cash flow and appreciation. But there's a lot more going on below the surface of the water. So above the surface of the water, $5.67 per month, this is still getting pretty good. Even if you're a novice, it's still looking pretty good. And there's the return on investment. Let's go to year number six. Rent is now increased again to 2195. And you notice, by the way, we're not putting any appreciation into this number at the top. When we look at the bottom of the pro forma, we do have appreciation showing every year that impacts your gross equity income. Okay. And that's driving those return numbers. Because think about it. If this is appreciating at 6% a year that appreciation compounds, we're not compounding it. Remember, if you buy it for 260 and it's now worth 300, the appreciation is based on the higher number. We're not even compounding the appreciation. We're just doing flat numbers here. So it's really much better than we're showing you. Okay, so here we go. 36% annual base return, 45%. With inflation induced debt destruction, cap rates now 7.4%. Cash on cash is 12%. Let's go to year number seven. And we're going to increase the expenses on year number seven. House is getting a little bit old. It's going to need more maintenance. You know, maybe we got to replace a water heater or do a little bit of landscaping or something. Right? Something's going to come up. So year seven, we're increasing the maintenance cost to 10%. We basically increased it by 500% from 2% to 10%. And so here, what do we have? We've raised the rent again. The rent is now 2280. It was really 2282. This is the where we rounded it. Okay. And our cap rate is now 6.9%. It went down. Why did it go down? Because we increased the maintenance cost. Our operating expenses were higher. Our maintenance now is almost $3,000 per year. And our overall return on investment also went down to 43%. But it's still pretty darn good. Our cash flow is at 538per month. So let's just take a look at the whole big picture here. Here are the base returns on investment for each year. 26%, 30%, 32%, 33%, 34%. Go to year six is 36%. Year seven, it goes down because of the maintenance to 34%. The total base ROI over the course of the investment, the seven years projected at 225%. Now, if you add inflation induced debt destruction in, it's 287%. Because over the course of seven years, with the inflation that happens, that debt has become cheaper to pay. That payment feels lighter, that mortgage balance feels lighter because of inflation. Inflation is paying off your debt for you. It's the most incredible hidden wealth creator. And listen, don't take it from me. Read Dan Ammerman's books. Listen to the late Sam Zell, the billionaire guy. He passed away right after Covid. He talked about inflation induced debt destruction. Now, nobody's using my trademark term because, hey, it's trademarked. It's mine, okay? But they explained it in other ways. This phenomenon has been going on for a very long time, okay? As long as there's been inflation, there's been inflation induced debt destruction, okay? I just say it in a more compact way. Learn to understand that phenomenon because it's very powerful. Now, let's take and put money to this, okay? Let's not just talk about percentages. Let's put some money in. Let's assume that you invest, you deploy, you call us up. You go to Jason hartman.com, you look at the properties on our properties page, you look at these complete performas, you reach out to one of our investment counselors and you say, hey, I want to deploy $500,000 with you. I want to become a real estate investor or I want to have more investments. I'm going to deploy an additional $500,000 with you. Okay, fine. Now this is not in a fund or a syndication or anything like that. We're not pooling your money with anybody else. You buy the properties through us. We support you and help you along the way through your entire journey, okay? Lifetime support. And when you do this, you own the properties, you control them. You get to decide what to buy, where to buy, when to buy, how to finance it, how to refinance it, who to rent it to, how much to rent it for. It's your deal. There's no fund manager or senior syndication promoter who can rip you off. Okay? Commandment number three of my ten commandments for successful investing. Thou shalt maintain control. When you relinquish that control to somebody else, you leave yourself susceptible to three major problems. Number one might be investing with a crook. Lots of scandals. Marco Santarelli, the real estate crook, okay? He Pled guilty on a plea deal to defrauding all these investors out of between 60 and 90 million dollars. Sentencing coming up soon here, so it'll be interesting to see how that goes. Lots of syndicators and fund managers ripping people off. Bernie Madoff, Enron, WorldCom, Global Crossing. I mean, they're just too numerous to even count them, right? So that's the crux. Number two problem, they're incompetent. You lose money just because of their sheer stupidity. Okay? So you don't want to have an idiot losing your money. Number three problem, assuming they're honest, competent, they take a huge management fee off the top for managing the deal. And this is the legal way. I mean, take the syndicator world, for example. With real estate, usually they put zero money in the deal and they get to take a big chunk of the investment just for finding it and setting it up. And that might be worth it, but what they do is they take money in all these other ways that are just. It's just too long to discuss here. Look, the investors get the crumbs. You can't name any person that ever got rich investing in a syndication, a fundamental, the stock market, any pooled money asset. But you can name lots of people that got rich buying income property, okay? Be a direct investor. That's the key. So how does this look? Well, we take all those returns over the years and we're using this column with the inflation induced debt destruction because that's a more realistic performa. Okay, and we take our $500,000 and every year we show how much wealth is being created. Does that come in cash flow? Can you cash it out immediately? No. Real estate is not liquid like that. You have to follow my refi till you die plan. And there's many videos and podcast episodes on refi till you die. But overall on that $500,000 investment, with the returns and everything we discussed, if it all goes like that, and it never will, okay, in real life, things are different, circumstances vary, everything varies. Might be better, might be worse. We don't know. Okay? The future is unpredictable. But the projection says that the $500,000 will get you a return of $1,435,000. Wow, that is phenomenal. Here's what I want you to do. I want you to cut that number in half and assume it only goes half as well as expected. And you will still see that income property is the most historically proven asset class in the entire world. And yeah, crypto bros. Listen, I own bitcoin. I own A bunch of different cryptocurrencies. Okay, go ahead and comment below and say that you bought Bitcoin for a penny. And, you know, lately it's been plummeting, of course, but, you know, who knows what the future is, right? Very speculative asset class. I mean, listen, I think I own everything, okay? You know, I think you should. If you've got some money, you should invest in a lot of things. But your focus. Look, concentration creates wealth. And the way you're going to create wealth is through income, property. Play with some other things if you've got the money to play, but focus on one thing. Andrew Carnegie, or was it Dale Carnegie? I don't know which one. One of those super rich people. He said, put all your eggs in one basket and watch that basket. And that basket needs to be income, property. That is the thing that will create the most wealth for you. So here are two books by Dan Ammerman. And he's pretty good at explaining these concepts, as is yours truly. One is called Eight Levels of Homeowner Wealth Multiplication. Then another one. And you see, I, of course, purchased both of these books. I actually had them before, but I purchased the hard copies. I had them from his. His seminar, the Homeowner Wealth Formula. Also, I suggest you read both of these books because they do a very good job of explaining this. Now, what's funny is, look how not mainstream this is. He only has five reviews on one of the books and eight reviews on the other. So clearly you have an advantage here because most people aren't consuming this book material. This is not a New York Times bestseller like some stupid book by stupid Susie Orman. Okay? You know, like that's just generic dumb financial advice. I mean, it's okay for some people, but not if you want to do something amazing and great. Okay, so let's wrap it up, and I want to wish you happy investing and I want to encourage you. Reach out to us. We can help you with this. Talk to our investment counselors. We have a great team. They've been with me for so many years. Some of them have been with me for 18 years. 10. 10 years. Our people have been with us a very long time. And they can help you build a portfolio, choose the right properties, manage them, and make this whole process much easier than it would be doing it on your own. That's what we're in the business for. We're here to support you. Our slogan is the complete solution for Real estate investors. We have the software, we have the connections, the contacts in every area from asset protection to 1031, exchange, tax strategy, everything under the software so we can help you with the whole thing. It's your one stop shop so reach out through jasonhartman.com you can call us at 1-800-hartman we're available to help you press extension two if you call if you're outside of the US 714-820-4200 and press extension two until next time. Happy Investing.

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