CW 187: Meet the Masters of Income Property Investing, Asset Protection & Real Estate Taxes

Welcome to Creating wealth with Jason Hartman. During this program, Jason is going to tell you some really exciting things that you probably haven't thought of before. And a new slant on investing. Fresh, new approaches to America's best investment that will enable you to create more wealth and happiness than you ever thought possible. Jason is a genuine, self made multimillionaire who not only talks the talk, but walks the walk. He's been a successful investor for 20 years and currently owns properties in 11 states and 17 cities. This program will help you follow in Jason's footsteps on the road to financial freedom. You really can do it. And now here's your host, Jason Hartman with the complete solution for real estate investors.

Welcome to the Creating wealth show. This is Jason Hartman and this is episode number 187. Thank you so much for joining me today. Before we get into today's show, I want to make sure you know that we have some fantastic shows coming up for you. Our upcoming shows will include apartment investing. We'll also have guru Ted Nicholas. You may have heard that that's a very famous name. Who will talk about marketing. And we'll talk about avoiding real estate and income property investment scams, legal services, how to recover on judgments or have judgment recovery be a potential home based business. We're going to talk with Doug Ottersberg about mobile home park investing. And we've got a memory expert, David Farrow on the show who's a really unique guy, very famous person in the world, memory and how you can improve your memory. And we're going to talk with David Fagan about guerrilla marketing. So a lot of great stuff coming up. This show. What we wanted to do is share with you a recent conference call just in case you missed it. That was about a preview for our Masters weekend, a gathering of experts. And that is coming up, of course, this weekend. This coming weekend on the 16th and 17th here in Irvine, California. And the day before on the 15th, we are having the Creating wealth in Today's Economy boot camp. So this is a three day event. We're doing them all consecutively. We've never done it that way before, but I think you'll really like it. And here's a little taste of it. And we have some of the speakers on this conference call. So we'll have the conference call here in just less than 60 seconds for you.

Hey, Al Rantel here. You know, with all the financial uncertainty, now is the time more than ever to be in touch with Jason Hartman. They have what's coming up we call the Masters Weekend. Now they're going to learn about the tried and true conservative investments that work in real life. For example, how to get the taxes back that you paid over the last five years. Imagine that. How to make up to 40% or more, even in today's climate. How do you reserve? How do you find out information? Simple. Go online to jason hartman.com also get your free educational podcasts. Do not miss the Masters Weekend.

So, everybody, this is Jason Hartman, and I'm with Platinum Properties Investor Network, and I am joining you tonight from Austin, Texas. I'm out here for a little bit of fun. Going to the UCLA Austin game on Saturday and then going to Dallas. I'm going to be looking at properties tomorrow with our local market specialist here and then also looking at some properties in Dallas early next week. And that's what we do. We're constantly looking around the country for good investment properties and income properties that make sense. And we'll get started here formally with a preview call in just a moment. And Sarah, I hope you're ready. I'm unmuting you now. Sarah, are you there?

Hi, Jason. I just want to let you know I'm here.

Okay, good. Yeah, I saw your hand raised. And if you want to kind of just chat for a moment here, we've got, I know, quite a few other people joining the call, and we've got our participants that Brittany is logging in and so forth. Angela, I see that you're here, so thank you for joining us. We'll unmute you in a little bit. And we have a few different people that are going to speak to you tonight to talk about what's coming up in the Masters weekend. And Sarah, did you want to say anything about it before we kind of formally start here?

Just really excited for October to be here. You know, it's right around the corner. We've been ramping up since the last Masters weekend and we've got a lot of great information tonight. Couple new speakers. We're really excited for this Master's weekend.

Well, I think there's a lot going on out there that's pretty ugly in the financial world. So it's very, very important that people really take matters into their own hands. And. Well, maybe I'll talk about this in the formal part of the call, but the Masters Weekend is an event we just hold twice a year, every spring and every fall, and this is our fall event, so we're very excited about it. And by the way, just for those of you who don't know, Sarah is one of our investment counselors And Sarah, I just unmuted you for a second here. I know Brittany just muted you. She's one of our investment counselors at Platinum Properties Investor Network, and she's been with us several years and has been helping clients find investment properties in many, many different markets all over the country. Sarah, what are some of the more active areas for you right now? I know that you've been busy in IndiaPol Dallas. Phoenix is getting busy again, so that's kind of nice.

Yeah, I'm really looking forward to getting ramped up for Phoenix. I've seen some pretty good inventory come through, so I'm excited about that market. You know, we're still doing a lot of business in Atlanta. Indy Dallas had a client contract today in Denver, which, you know, I'd love to do more stuff in Denver. It's a little bit more of an expensive market compared to some of the others. That's a great market. Houston, we're just starting to do some more business in Houston, which was one of our hot markets about three years ago, and there's some great inventory in Houston as well.

And many of you ask why are we recommending certain markets at certain times? And really what that all comes down to is that it's just where we find the good inventory of income properties. We're area agnostic, so we have no attachment to any one market. We just go where the deals are. And a great example of that is where I am now. I'm in Austin, Texas. And Austin, Texas is a market where we put probably give or take, about 200 investors into Austin. I own property here in the greater Austin area and we've done a lot of business here. And tomorrow I'm meeting with our local market specialist here, Mike, and we're going to look at some properties in the morning. But I'll tell you, Austin is it's hard to get good inventory now. And we could be presenting a lot of properties in a lot of these markets, but they're just not as sensible as some of the others. So we really pick and choose and go where the properties make sense. And our local market specialist, Mike, I was talking to him on the phone yesterday, getting plans made for the trip to come out here, and he basically said, jason, I am looking every day of my career for properties for your network. Every week I run searches with various computer programs and so forth, and I'm just not finding the buys that I used to in the greater Austin area. So again, that's not why we're not talking that much about Austin, right Now, but I thought I'd mention that to you because I happen to be here at the moment and that's sort of an applicable thing. So why don't we go ahead and get started and Sarah, I'll go ahead and mute you.

Okay, great.

Thanks again. My name is Jason Hartman. I'm president of Platinum Properties Investor Network. And we are a company That's Genesis is 13 years old now, actually almost 14 years old, and we've helped thousands and thousands of people buy properties over the years. I've been in the real estate business over 20 years myself, and I actually don't like to mention the exact number over 20 now because it's getting to be a lot of years, but been in the business over 20 years. I've got the real resume. I've done this myself. I've done it for myself, done it for other people for many years. What have I done? Well, I've helped myself and I've helped other people create income and create wealth through income properties through investment, real estate. And I've made millions of dollars personally in the real estate investment business as an investor and then of course, for clients as well. So unlike a lot of the people out there that are promoting various things and various scams and all sorts of things, we're the real deal. We've done it. We do it every day. We have a real, real office, we have a real staff, we have a real presence, and we've been in the business for many years. By the way, one of the websites I'd like you to pull up on your screen if you're in front of a computer is jason hartman.com. i'm going to reference a couple things on this website. So if everybody on the call could go to jasonhartman.com that would be great. So I'll just talk a little bit about the Masters weekend for a moment. This is an event that we hold just twice a year. I believe this is actually our eighth Masters weekend. We hold it every spring and every fall. And we have two core events that we do. One is the Masters weekend that we're really focused on tonight. And the other is the Creating Wealth Boot Camp. Now, let me just explain the difference between those and what our idea of these two different events that we have many times a year, Masters weekend just twice a year, Creating Wealth Boot Camp, we have every two months or so. And the reason I mention that is because we're doing things differently this time, for the first time ever, we are doing the Creating Wealth Boot Camp, our signature event that about 8,000 people have been through over the years. We're doing that the Friday before the Masters weekend. So this is particularly of interest to people who are traveling. So if you are traveling from out of town, the event is in Irvine, California. It's at the Hyatt Regency in Irvine. You can see our two major events all in the matter of three days. So Friday we'll be doing our foundational program that is the Creating Wealth Boot Camp. Creating wealth in today's economy. And that really offers some very, very unique perspective. It's not the same old stuff that you've heard from all of these other people out there. It is extremely unique. And one of the reasons it's very unique is because we focus on the ways to benefit from all of the crockery and all of the scams that are going on out there in the financial world at the highest levels of our government, of our stock exchanges, and in the Federal Reserve and in the Treasury. So monetary policy is a big issue, and we really help investors prepare for the future based on these things. Again, very different than what you've seen before. And we always intended for the Creating Wealth Boot Camp to be a prerequisite to the Masters Weekend, but unfortunately, it never really worked out that way because a lot of people would come to Masters Weekend over the years as their very first event, and they wouldn't have the foundational background of the Creating wealth of Boot Camp. So one of the bonuses that we're going to be offering, some specials at the end of this call is we're going to be throwing in the Creating Wealth Boot Camp as a free bonus for registering for the Masters weekend. And it gets even better than that, because if you're thinking, well, gee, Jason, that sounds great, but I can't get off work on Friday, and I need to work on Friday. So we have that all professionally recorded and edited with a full transcript and a beautifully done workbook. So you can either have the Creating wealth home study course or live. Now, it would benefit you much to come to the live event on Friday before the Masters weekend, and we'd love to have you at that, but if for some reason you can't attend, we will go ahead and give you the home study course. And again, that's a $297 value, and many, many people have attended this before. So I am now looking for Mark, our first speaker. And there he is. And, Mark, you are unmuted now. How are you?

I'm doing great, Jason.

Good, good. Let me introduce you, everybody. This is Mark Kohler on the line. Mark is a CPA and a tax attorney and he spoke at the last Masters weekend. And not only is he incredibly knowledgeable and not only is he handling some of my tax matters for me personally, but he's incredibly entertaining. Mark, you just had the audience laughing and laughing and besides the great information, you're just a very entertaining speaker. So we're glad to have you speaking at this Masters weekend. You're doing two sessions on Saturday, one before lunch and before lunch I think we're going to talk about asset protection, if I'm not mistaken, or taxation. And then at the other, the other segment, we're going to talk about the other topic. So why don't you go ahead in just a couple minutes here and talk about what you're going to talk about at the upcoming Masters weekend.

You bet. And Jason, thanks for having me. I was actually listening for most of the call. It just wasn't recognizing me and I. So please forgive me if I showed any disrespect. I've been listening to you. I am so excited for these events you're having. I was just thoroughly impressed when I came up to the last one. You had a just, it was standing room only in the back and fantastic speakers and it was an honor to be on the agenda. So I just can't encourage you folks that are listening and haven't made up your mind yet. Please come out now. I also wanted to say thank you for those wonderful compliments about my intellect and speaking energy.

Mark, you're a tax attorney, you're a cpa, and you've written a book entitled Lawyers Are Liars, which I'm sure many people will agree with. What are some of the mistakes investors are making nowadays that you're going to teach them to fix at the Masters weekend?

You bet over these. And thank you for giving me a couple hours at the event because before and after lunch, we're going to hit a blend of the asset protection and tax topics and they really go hand in hand. And that's why I think I've hit it off with you, Jason, is that there's so many lawyers out there trying to teach the asset protection topic, but they miss the boat when it comes to taxes. And you've got the CPAs trying to teach tax and miss the boat. They go hand in hand. And some of the things that we teach, of course, are intertwined in that. So we're going to cover the right type of structure to be using for your real estate strategy. That's I know it may sound boring to some of you, but I can make it very exciting and dynamic because there's very different types of real estate deals out there. There's long term holds, there's short term, there's fix and flips, there's wholesaling, there's commission based real estate. We've got to be very careful how we structure our deals. I want to talk about the scams in regards to Nevada based companies or Wyoming or Delaware. Do they work? When do they work? They do in certain instances. And those are chapters of my book. And then talk about the wonderful benefit, the asset protection we can create for our real estate portfolios that's not driven by scams or high pressure sales or fear tactics. I'm not going to be selling. I'll be bringing some copies of my book or we may even be giving them away. We haven't decided yet. But I'm not going to be selling any particular structure. It's all about you guys having a quality weekend and me just giving you education on these things to make sure you don't get burned.

Now the other thing that I really want to bring up to the listeners on the call here, Mark, is that a lot of people get kind of bored when we talk about taxation. They think it's sort of a boring, dry topic. But folks, everybody listening, the largest single expense you have in your life is tax. Tax is your largest expense. So you may spend time shopping around for a new big screen TV or a new car and very little time shopping around where you can really get the highest return on savings and that is on taxation. So if you play your cards right and you use the tax code to your advantage rather than to the government's advantage rather than to the IRS advantage income property is the most tax favored asset in America. And there are some very simple things sometimes that investors in the know can really benefit from in terms of this. And I have to make a comment on how many incompetent lawyers and how many incompetent CPAs and how many incompetent enrolled agents are out there doling out advice that is either self serving or just not prudent for one reason or another. And Mark, did you want to touch on any of those kind of topics for a moment here?

Oh, absolutely. And gosh, I think that tax planning could be one of the funnest topics. I know it sounds crazy, but when we're in the room and we're saving money by the minute talking about ways to build your real estate portfolio and do it in A tax preferred way. It is mind blowing. I mean the tension in the room and excitement just grows and I'm up there busting news. I get excited and high five everybody on the front row. It is a lot of fun because folks, when you can catch the vision of the tax planning opportunities in a simple organized presentation, it is life changing. And some of those things we're going to talk about, I give a regular, write regular articles and have a regular radio shows I do on the 10 most underutilized tax strategies. When it comes to real estate, there are constant mistakes made. I have clients come to our firm on a regular basis, if not weekly, that have been just their tax returns are a mess because they are CPA, literal CPAs that have screwed up their tax returns, things they've missed. There are awesome deductions in small business and real estate and we're going to have fun. In fact, I want to promise this. I really can promise that you can come up and punch me in the gut or slap me if I'm wrong. The savings alone from my couple hours that I'm going to get to have with you and I begged Jason to give me a couple hours. And I know that's generous because not all the speakers get that, but I know that in the two hours that I'm with you, I will save you five to ten times whatever it costs you to come to this event. Just the tax savings alone.

And you know, Mark, let me second that because I have to tell you my own story about this. And this just happened to me. I just got around to filing about 1200 pages, I kid you not, of tax returns because I amended prior year returns with the IRS and I had one enrolled agent that prepared a lot of this stuff and my CPA found a mistake on this. Now you're doing some tax attorney work, but my regular CPA found a mistake on this and he gained me about $61,000 for a very little known, I mean at least he said it was little known and I'd certainly never heard of it. And I'm familiar with this stuff, tax advantage that I was entitled to. And folks, I'll tell you, I believe. And Mark, you confirm your rate, but I believe you bill out at about $380 per hour. Right. Is that your hourly rate?

Actually 300 an hour. Just 300.

Oh, what a deal.

So 300 an hour. So two hours just with Mark presenting at the masters weekend is $600 right there. And if you had to pay for all of these experts individually that are going to be speaking at this event, you would spend thousands and thousands and thousands of dollars. So the Masters weekend is far less expensive than that. And the value of their advice, rather than just the normal cost if you went to them individually is way beyond their cost. So I think this is a very important part, structuring thinking in an advanced manner. Regardless of your stage or level of the game with investing or money, you've got to start knowing about taxation because throughout your life, 40%, give or take, will go to the government. And you've got to learn how to minimize that and get that down to as small a percentage as possible. I mean, imagine this. Imagine if your household income is $100,000 a year, just for round numbers sake, and if you could save $20,000 per year or, or maybe even $40,000 per year through saving on some sort of tax just by using proper planning and good prudent strategies. And this is not the type of Nevada scams where they're selling all this stuff. You don't need these mills where they say, oh, get three LLCs and a certain kind of trust and two corporations, an S and a C corp and suddenly you've got a $12,000 bill for all this junk you don't need and your life has become so over complicated, it's just ridiculous. I've heard those pitches so many times and it's just very discouraging. Mark, what else would you like to say before we let you go?

Well, I just want to echo what you said. That is not my style and you know it or you wouldn't have me there. Folks, you're not going to get sold just a pile of garbage or a box of stuff you don't need. I'm going to present real education to help you design what you need or at least get a feel for what you need. And then we're always there as a law firm and accounting firm to help you if you need us, but at least point you in the right direction. Last thing I just want to say is, Jason, also echo the tax issue. Guys, we don't know if these Bush tax cuts are going to be extended to any degree. It's likely that they will not be. Tax rates are going up. We've got the estate tax coming back with a vengeance. We've got a health care bill that many, many millions of Americans don't understand. And at this presentation, I'm going to tell you how your health care relates to real estate. Guys, they're intertwined and you don't even know it. And it can save you thousands. You're going to love it. So it's got to come out, folks.

I can't wait to hear that part myself because I don't know about that yet. So Mark, we look forward to having you there. October 15th, 16th and 17th are the three days and Mark will be speaking on Saturday the 16th. So we're really looking forward to it. And thanks for being on the call tonight.

Thank you, Jason.

We'll see you then.

Let me take a brief pause. We'll be back in just a minute.

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And next, let's go and let's talk to Doug. Doug is a regular contributor to our newsletter, the Financial Freedom Report. And he actually started out being a client originally and I just started to kind of get to know Doug on Facebook because I would look at some of his writings and so forth. And he has flown down from Portland, Oregon and left his family for a couple of days to speak and present at the Masters Weekend. And Doug, are you there?

I'm here.

Jason, how many times have you flown down for Masters weekend? Two or three times now, I think. Right.

This will be my third Masters weekend.

Well, three is a charm. Well, hey, thanks for joining us on the call tonight. You're talking to us from Portland, Oregon and you're taking two topics at the Masters weekend, one on Saturday and one on Sunday. And what are you going to be talking about? About?

I'm not exactly sure how the days will be arranged, so I can't say what's on Saturday and what's on Sunday. So topic one is going to be modern Portfolio Theory meeting income properties. So earlier in my career I worked for an insurance company, took the Series 6 examination and I also did my undergrad in finance and got my mba. So I've had a lot of exposure to the theories of Bill Sharpe and Harry Markowitz. And the thing that I found that's unique is that the stock market seems to be dominated by quantitative analytics, a lot of really, really smart quantitative people. But for some reason real estate is dominated by people who barely even know what cash flow is. And the thing is that what that's actually done is it's really created an arbitrage opportunity for people who can take some of the techniques that have been perfected in the equities market and move them over to assets that produce real rates of return, like income properties.

That is very important. It has always been amazing to me how simple the income property business is and how unsophisticated so many of the people in the income property business are as investors. And that's good and bad because in one sense it's great, Doug, that the institutions haven't come into our business, that we don't have to deal with or compete with these brainiacs on Wall street, these quantitative people, the quants, as they call them, and deal with them in transactions. Income property is a very simple business. It is a great business. It is the most historically proven wealth creator for the regular American and the regular foreign person as well. I know we have international people that are following our work and buying properties from us as well. So it's a great thing and it's a great opportunity for the average person and we can take and apply some of these Wall street techniques in terms of financial planning, in terms of portfolio theory. And it's interesting that you mentioned this because on my vacation here in the Caribbean last week, I was actually going through the book A Random Walk Down Wall street and I've not finished it.

It's a wonderful book.

It's a classic book that's sold over a million copies and many people have read it. But what's so interesting about it, and I have not finished, but my, my sort of take on it so far, Doug, is that all of these different methods that chartis that fundamental, the technical and all the different types of people and the way they approach stocks and other investments, at the end of the day, it seems like you just buy the S and P index fund.

It just doesn't seem like it really makes that much difference. But again, I'm not finished.

I would say, yeah, the people who are bullish on index funds, such as myself, we have a famous joke which says, what does the lottery and managed mutual funds have in common? They're both for people that don't know how to do math.

Thank you for listening to the Creating wealth show. This is Jason Hartman, your host and we appreciate you following the show. We have many, many episodes, hundreds of episodes, and some of the older episodes have been archived and placed in our members section. And that applies to this one. So we include a sample that's about 25 minutes long. And then for the rest of the show, you can go to our members section and jasonhartman.com Many of the other shows are still in their full length complete version. However some of the shows like this one are in our members section where you can hear the show in its entirety and again you just need to go to jasonhartman.com and you can get the full show there in the members section plus a whole bunch of other great members benefits and resources whether it be documents, forms, content, soundtracks, articles, other video and audio content. Just a great resource so be sure to join as a member@jasonhartman.com and thanks again for listening to the Creating wealth show.

This show is produced by the Hartman Media Company. All rights reserved. For distribution or publication rights and media interviews. Please visit www.hartmanmedia.com or email mediaartmanmedia.com Nothing on this show should be considered specific personal or professional advice. Please consult an appropriate tax, legal, real estate or business professional for individualized advice. Opinions of guests are their own and the host is acting on behalf of Platinum Properties Investor Network Inc. Exclusively.