CW 973 - Jobs Are Coming Back to America, Rent Inflation is Coming & Mason's 5 Year Plan

Welcome to the Creating wealth show with Jason Hartman. You're about to learn a new slant on investing, some exciting techniques and fresh new approaches to the world's most historically proven asset class that will enable you to create more wealth and freedom than you ever thought possible. Jason is a genuine, self made multimillionaire who's actually been there and done it. He's a successful investor, lender, developer and entrepreneur who's owned properties in 11 states, had hundreds of tenants and been involved in thousands of real estate transactions. This program will help you follow in Jason's footsteps on the road to your Financial Independence Day. You really can do it. And now here's your host, Jason Hartman with the complete solution for real estate investors.

Welcome to episode 973. 973. This is your host, Jason Hartman. Thank you so much for joining me today. I just returned home from Sedona, Arizona. Beautiful place, Sedona, Arizona. Just a spiritual, really neat place. And maybe you've been there, maybe you haven't. If you haven't put it on your list, you should go. It's pretty cool and it's worth checking out. Unfortunately, though, it rained most of the time we were there was hanging out with one of our lenders who you're going to hear on the show real soon, a couple of our investment counselors and boy, it was kind of cool. Carrie and I were there and you know Carrie, she plans a lot of the events we do for Venture alliance and Meet the Masters and so on and so forth. You know, it's I think the first time we've both been at an event where we weren't working. It was kind of nice not to be working, just to chill out and do whatever you want sometimes. But hey, you know, if you've been to our events, we have awesome events. I was just reading the reviews from San Jose. Thank you to all of you who came out to JHU Live in San Jose. That was great. And then of course to meet the Masters in January. The reviews or not reviews, but evaluations were great and we really appreciate your comments. And occasionally when there's a little thing you want us to fix or improve, hey, I read all of those and believe me, we're listening to you. We're listening to you. We really appreciate the feedback. So gosh, what should I start with today? Well, we're going to do a five Year plan video, one of our top three in the five year plan contest. Mason kindly re recorded his five year plan which was very nice because the sound on the Video wasn't so great and Adam and Mason got together and talked and he had a script, so he read it with good audio quality. So you can hear that today. Mason, congratulations. We thought your entry was great and we're gonna play. And what else should we talk about? Well, hey, the jobs, the jobs, the jobs, jobs, jobs. They are a coming back to the good old US of A. Now, it was an interesting week in the news last week. Of course, we had the trumpet man, our president, who said it's time for some tariffs, especially on steel. And almost instantaneously, one of these old, what do they call them, these steel furnaces, you know, where they melt the stuff that hasn't been fired up in a couple of decades. Fired back up because guess what? Those jobs are coming back to America. Love or hate Trump. I admit he's not exactly the most mature presidential president we've had, and that's an understatement. He acts like he's a junior high school, he acts like a seventh grader, but hey, you know, he's going to bring the jobs back. Wage growth. You cannot deny love or hate the guy. You cannot deny that the economy has been booming. The stock market is up, what, like 40% since the election for the first time in about 20ish, give or take. I'm not reading anything right now. I'm just talking off the cuff. Don't hold me to it might be 18 years, might be 22 years, whatever. We have real wage growth, real inflation adjusted wage growth in the good old US of A. It has been a long, long time since we've had that. So, hey, as a libertarian, I hate the idea of tariffs, but as a pragmatist, I don't think you can actually have free trade where one trading partner has almost no regulations in terms of labor laws, environmental laws, compared to what we have. We have massive regulations in terms of labor laws, environmental laws, and hey, if you don't believe me, I'll bet you haven't actually owned a business and tried to actually build something. I can hear Obama now. You didn't build that.

Yeah, you didn't build that. Right. Okay, Barry, yeah, whatever. Anyway.

Try to actually employ people. It is so difficult, you wouldn't believe it. I mean, I did it in California for many years and every, every day, I swear to you, I felt, hey, you know, and you can argue and say, well, your feeling wasn't justified. Eh, I don't know, whatever. A lot of people agree with me. I felt that the state of California did not want me to employ anybody, they really tried to make it impossible. And if you are doing business in the US and especially in any heavy handed government intrusive state like California, New York, you know, a bunch of others, they've all, they all intrude in their own little way. You know how hard it is to employ people. And hey, I wasn't in manufacturing. Now I had friends in manufacturing and I had friends in manufacturing in California. And the stories they used to tell me, they'd raise the hair on the back of your neck. Man, it was tough, tough, tough to do, tough to do. But yeah, the jobs are coming back to the us. That's a good sign for us, the tariff thing. Yeah, we'll probably see higher consumer prices. I get it, it's a trade off. I don't know, it's just a, like I've said many times, you either want cheap stuff at Walmart or you want jobs. And I say the jobs are more important than the cheap stuff at Walmart imported from China with no tariff. Right. Because ideally you don't spend all your money on consumer products. Right. And guess what? If your tenants that rent those great real estate investments from you have more money, then you will see more dollars chasing a limited supply of properties. And guess what the result will be? Rent inflation. Rent inflation? Yes, rent inflation. That's the result. And hey, you're gonna like that. You're gonna like it a lot. And I'm gonna like it a lot because hey, I don't own them 100%, but I got about 281 doors. And when I see wages go up, I'm gonna see rents go up. And granted maybe consumer products will get a little more expensive, that's the trade off. But hopefully we're not spending all of our wages on consumer products. Right? So the net of it is that you have a margin. Right. And that margin benefits the US economy. So philosophically again I struggle, I struggle with this, the tariff concept. But overall I just don't think you can have true libertarian as I'd love to have free trade without some restriction because it's too imbalanced. You know, there's a biblical concept called equally yoked. And as I recall that applies to marriage. Right? And in a marriage, whether it be a romantic. Well, is it romantic? I don't know, it's, I haven't been married, I'd like to get married. But if you're married, you probably think, you know, this isn't very romantic after a while.

But that's when the work comes in. And that's when you show true love. That is actually work, Right? It's not just romance and fun like it was in the beginning, in the courtship stage. Hey, these young kids nowadays, they don't even know what courtship is. You've heard me say it. I'll say it again. The government is the new husband and the smartphone is the new boyfriend. More on that later. That's the way it is nowadays. So, guys, if you are in the marketplace, that's tough competition. Competing with Instagram versus traditional courtship, right? But lest I go on a tangent alert, tangent alert. So in the concept of trade, it's important to the economy, it's important to us real estate investors because I believe the partners have to be equally yoked. The playing field has to be somewhat level or you just. It just doesn't work. It just. It's just not going to work. And it hasn't been working. Your jobs and the jobs of your tenants and the jobs of all those Bernie Sanders voters who want $15 an hour minimum wage. You know where they went? Bill Clinton traded them away. He started it. Well, no, he didn't start it. Reagan did it. I don't know what happened before Reagan. I'm too. Too young to know, fortunately. But, you know, Ford and Kennedy, they probably. And lbj, you know, who knows? I don't know. But the fact is, this is not a partisan statement. Your jobs have been so. You've been sold. The American worker has been sold down the river for. For decades. And finally there's a president who at least says and seems to be doing something about it. Hate him if you want. I mean, I agree there's a lot of reasons to hate the guy, but the jobs are coming back and wage growth is happening, and it's going to happen to an even greater degree. So enjoy it, because you're going to see the ability to increase your rents more significantly in the future. It takes a while for this all to play out, but mark my words, I'm going to be right about this. Okay, so some other interesting things happened, of course, besides the tariffs. China has decided that they can now have a leader for life. Do they call it president in China? I think they do. Prime Minister. No, I think they call it president. Anyway, they will now have a. An omnipotent. No election needed. Maybe this is a step back toward the Mao, the Chairman Mao generation, the Cultural Revolution, as they call it. I love these misnomers for communism. They're like, you can't write fiction this good. It's incredible. So, yeah, they're going to have one leader for life. No elections. Those silly little elections. What a waste of time that is. And hey, that's kind of the way it works in Russia. Even though it's not official, but that seems to be the way it goes there too. North Korea, Wow, this is historic. North Korea is going to sit down with Trump. Whoa. Kim Jong Un and Trump. Boy, that's gonna. Do we live in interesting times or what? Now this hasn't even been on the table for four or five decades. That this, this is a cr. I mean, times, they are changing. Wow. Wow. This is hugely significant. And it's gonna happen soon. So we're gonna tune in, there's gonna be some interesting stuff in the news. A good economy makes for spoiled children. This is something I want to just tell you about a struggle that we have. And this struggle, it's always been a little bit of a struggle for us. And really being your advocate is a client advocate because, hey, that's what we're here for. We're here to make this idea of nationwide real estate investing easier, right? And we want to be thought of and known as a customer centric company. And this is why I say constantly to real estate investors that you got to remember who your customer is. Your customer is the one who pays the money. The one who pays the money, that's the customer. In case you're wondering who the customer is, your customer is not your property manager. Your customer is your tenant. Your tenant is your customer. I have many tenants. They are my customers. Now granted, sometimes the customer is wrong. You've heard that saying, you know, rule number one, the customer is always right. Rule number two, if the customer is wrong, refer to rule number two. Actually, that's, you know, it's a cute saying, but it's just not true. Sometimes the customer really is wrong. Right? But even when they're wrong, sometimes you gotta try to do right by them. And sometimes, like I've been having this battle with one of our local market specialists who just, frankly, they're just out to lunch on this whole thing, okay? And the customer had a problem with their property. And you know, it's like, blame the customer, blame the circumstances, blame whatever you want. But at the end of the day, it's not. It doesn't matter who's at fault. What matters is making the right decision, the right moral decision, the right ethical decision, and the right business decision. Hey, if nothing else, just make good decisions out of pure self serving greed. Okay? You know, and if you're Greedy in the long term, then you view the world with a long term view and you do whatever you can to make it right. So the constant struggle that we have, that has become a much more difficult struggle lately because we have a situation where business is booming.

Now.

I remember when I was 19 years old, actually, I was. I might have been 19, I was probably 20. It's probably 20 years old. And I was sitting in the Century 21 class. Now this, I already had my real estate license, but I was taking all the classes I could. They had some good education back then. I was taking these commercial real estate classes through Century 21 investing classes. I took every class I could take. I just, you know, it's kind of a compulsion. Honestly. I think it's a compulsive behavior. I really, I have like OCD when it comes to learning. I just want to learn everything. I'm still like that. It just has never gone away. It's kind of obsessive. I'm not sure it's completely healthy. I just, I just want to tell you, I don't know if it's completely healthy, but anyway, it is what it is. I try to keep. Keep myself in check. Anyway, I remember my instructor in that one class I was taking talking about how in a booming market, in a booming economy, the big job you have then as a real estate broker is the job of sorting. The sorting job of sorting people out. Because in a booming economy, every flake comes out of the woodwork, okay? And this is how it is now. Now there's kind of two components to this. They're, you know, it's. Everything's a subtlety, right? It's. There's a lot of shades of gray, so to speak, right? There's more than 50. Okay? There's more than 50 shades of gray. Well, hey, now they've got what, three movies? So that's 150 shades of gray. Count the money flying in, right? And the biggest people in the audience, interestingly, are the feminists. Explain that one. As human beings, we're all, hey, it's complicated, right? We're all complicated people. We have all sorts of little hypocrisies within our nature, don't we? All of us do. I do. You do too. Yes, you do. Anyway, the biggest job is the sorting job. But think of it like parenting, right? Even if you're not a parent. But if you are, especially, right, look it, if you throw too much money at your children, what happens to them, right? Too many goodies, too much money. They become what Spoiled. And this is exactly what happens in the marketplace in overheated economies where the market is good people become what? Spoiled. And what is kind of the definition of spoiled? It's a complete opposite of the definition of gratitude. Completely opposite of the definition of gratitude. So you get people that would otherwise be good people, probably, I mean, maybe not maybe they'd be bad people no matter what. But even good people get spoiled and they tend to take everything for granted. They don't appreciate things. And this is why you always gotta check yourself, right? Check your beliefs, check your ego at the door. You know, don't be spoiled. Don't, don't let yourself get spoiled. In fact, I intentionally do this in my own life. I intentionally create some hardships for myself so that I don't become spoiled. Listen, I certainly have the money, right? It's not about the money, but I don't want to become spoiled, right? I don't want to live in some life of abject luxury and you know, go first class everywhere because, you know, it's just, it's not healthy, okay? You gotta have a little hardship, even if it's self imposed hardship. You know, there's that old book, chop wood, Carry water, right? It's like a Zen book. I didn't read it. I did not read this book, but I thought the title was interesting and the subtitle was something about finding fulfillment in simple everyday life, right? So you gotta always check that and maintain some gratitude. So we are dealing in a marketplace, trying to be the client advocate in a marketplace where many of the formerly good suppliers of inventory, managers of property, etc. Etc. Hey, you know, they're human, all right? I'm not totally blaming them here, right? But you know, they get a little spoiled. They take stuff for granted. Businesses booming, the world is beating a path to their door to buy every property they can possibly supply. You know, it's just a crazy market and so it's hard to get them to really, really, you know, take care of business all the time, right? And some of them are just great people and they will always do the right thing no matter what. But some, hey, you know, when the money is flowing too fast, they're going to cut corners and then new entrants get into the market and they're just flaky corner cutting weasels, you know, a lot of these newbies because, hey, there's so much money flowing that it's going to flow to even the bad people. So when supply gets constrained and the economy is booming, it's just like the restaurant. You know, it's like I used to say, I love a good recession. I love a good recession. Because, you know, when there's a good recession, you walk into the restaurant and you get good service. It's like the restaurateur, the staff, they think, ah, what a wonderful thing that some people came to our restaurant to eat dinner tonight. Wow, now we can pay our bills. Do you think anybody thinks that in this economy? Nope, they don't think that. So, you know, just one of the things we're struggling with. Why am I telling you this? I don't really know. Our job is to be an investment therapist and that's what we will continue to do. But sometimes, sometimes you are dear listeners and customers and clients, you have to be our therapist. So thank you for allowing me this little therapy session. I will get up off the couch now and stop telling you about my childhood. Let's get to this five Year Plan, the audio portion of it. This was a video, of course, was good video. If you went to Meet the Masters, you saw it. But now the audio quality is good. So let's listen into that. I think it will give you some inspiration about your own real estate investing goals and I think you'll enjoy it. And stay tuned. There's a lot of interesting stuff going on in the news and a lot of interesting stuff coming up on the podcast. So here is the five Year Plan.

Howdy y' all from San Antonio, Texas. My name is Mason and this is my five Year Plan video entry. I began listening to Jason Hartman's podcast in the fall of 2014 and in 2015 I made a plan to purchase five properties over the next five years. When I set a goal, I make sure to consider five principles that are important to me. Career, investments, family health, and last but not least, service. I carry the reminder of these principles with me every day so that I remember to consider them in what I do. I will cover them in this Five Year Plan video. First, I'll discuss my career as a merchant mariner. This line of work has taken me all over the world and to date, I have been to 39 countries as a merchant mariner. I am licensed to operate vessels at sea and my five year goal is to achieve an unlimited tonnage master's license, which means I can captain any ship of any type or size in the world. The plan is to have my employment income fund my investments. By listening to Jason Hartman's podcast, I started my path into real estate investing and have since purchased three properties in Memphis through the Platinum Properties Investor Network As I continue on my five year plan to purchase two more income properties by 2020. I now plan to up the stakes for my 2018 going to 2023 five year plan. I would like to start investing in other markets outside of Memphis. In fact, I have my Meet the Masters ticket to San Diego so that I can start 2018 by learning more about a second market. By 2023 I also want to have purchased my first multi unit property while still acquiring single family rentals. In 2023 I will be 33 years old and expect to begin starting a family. So instead of putting a number on the amount of income properties, I am setting a goal to achieve $4,000 a month in cash flow on my investments next family. This is an important pillar for me, but one that has been difficult due to my career. Achieving my five year cash flow goal will allow me to spend more time with my family and friends. The ultimate goal is to no longer have to go to sea to support my family. I recently got engaged by proposing to my beautiful fiance Fernanda on a trip to Malta. She and I are a team in this five year plan and we have tuned into Jason's podcast Wherever in the World We Happen to Be. She also has read Rich Dad, Poor dad so we know that we want to see the world through a lens of cash flow instead of a job to provide for our family. We intend to continue learning and practicing so that we can impart these values onto our children. Health is a vital part of enjoying the wealth we create. Eating healthy and exercising on a regular basis is at the core of this five year plan. Together we listened to Jason and Fernando's Longevity and Biohacking podcast. We learned new ideas and healthy living tips to try. Also, I enjoy running marathons. I know, crazy right? But I have actually ran seven already since I began distance running in 2010. I want to continue training and running one marathon a year over the next five years. I'm also challenging myself to break my personal record and qualify for the Boston Marathon. Last but not least is service. This pillar brings all of the others full circle whether it be serving my country in the US Navy or my local community. This one is important. I want to continue taking Navy Reserve assignments and achieve the rank of lieutenant commander by 2023. In high school I used to be the organizer for our local Habitat for Humanity. I want to get back involved building with them. Well, there it is. My five year plan. Thank you for watching my contest video and I look forward to meeting Jason, his clients and speakers at Meet the Masters even though I have purchased a ticket myself. Winning this contest would reinforce my commitment to real estate investing and encourage me and those important to me to set goals and seize them. Thank you Jason. This is Mason out.

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