The Most Efficient Way To Extract Wealth From Your Portfolio

Live from the world headquarters of RT America in our nation's capital, this is the news.

Good morning everybody. We'll start in a moment.

Including those of you who are watching on your mobile phones using the portable TV app. Three major American banks are stuck filing money money over fears the coronavirus recession could get even worse. Let me tell you who they are. JP Morgan Chase, Wells Fargo, Citigroup have all set aside almost $30 billion that they say is going to be there to try and cover loan payments that Americans are increasingly unable to make. Those loans include credit card debt that Americans aren't making, business loans, mortgages in forbearance that are sometimes being delayed, in some cases up to a year that people are telling their banks, look, I'm not going to be able to pay my mortgage for at least six months, in some cases a year, depending on the bank, depending on the terms. Joining us now to talk about this is Jason Hartman. Jason is the founder and the CEO of Blacktham Properties and Investment Network. He's also a very prolific investor in his own right. I guess the takeaway here, Jason, is that banks are looking like they're getting stingy with their money and about to become even more stingy down the line. Am I reading this properly?

Yes, Rick. During the Great Recession, everybody blamed banks for being too liberal in their lending guidelines and giving out a bunch of length and ninja loans, meaning, you know, no income, no job, doesn't matter. Right. And so now the banks are being more conservative, there's no question about it. Even as they have Stockpiled between the three big banks that you mentioned, about $28 billion, we are seeing mortgage applications for both purchases and refinances go through the roof. I mean, consumers, homeowners and home buyers cannot resist these low rates. It's causing an artificial boom in the housing market and there's a lot of repositioning as we talked about when I was on with prior people moving to the suburbs. But one of my fears is that we'll see what we have seen happen after the Great Recession or even during is this, you know, this kind of vicious circle, this cause and effect where the banks over on one side of the pendulum, you know, it swings back and forth, right? They're, they're too liberal and then they become overly conservative and then that hurts the housing market, hurts the economy overall. So that's one of the things we need to be mindful of, is that let's hope they don't overcorrect. It is good that they're being careful for sure, but overcorrection is just as bad.

I got invited by Jason Hartman himself, the man, and basically, I've been really enjoying it. I actually have five doors already in Seattle, and the event has been fabulous. I've learned a ton of stuff already. Jason and his entire crew have been a fabulous inspiration, as well as educational in areas that I thought I was educated in, but I actually didn't know what I didn't know. And so it's been a great time, and I'm definitely going to probably be investing in a couple of these properties because there's some great deals here and some great opportunities for me to get both some tax savings as well as some equity investments.

Hi, this is Diane Kennedy. I'm a cpa, and I'm so excited to be here at Meet the Masters. I'm getting the opportunity to talk to real estate investors from all over the country, in fact, all over the world, and they're learning about tricks to put more money in their pocket. You find some amazing deals.

Wow.

I'm so glad I came.

Let's talk about the final tenth commandment right now. We do have, as I mentioned before, an additional 10 commandments. These are the original 10, and this one is about taxes. Now, a lot of people get really bored when I talk about taxes at.

Our real estate conferences.

Their eyes roll back in their head and they think, taxes. That's so boring. It's such a boring subject. But what you need to realize is that taxes are the single largest expense in most people's life. Right? They are the single largest expense. You know, we'll spend a lot of time and a lot of effort shopping for a new car, getting a good deal, even on a piece of real estate. Right? We'll put a lot of effort into that, but we won't put any effort at all into savings on the single largest expense in life taxes. You will just, in income taxes, give away anywhere between probably 30 and 55% of your income in just income tax.

Right?

Just income tax.

All right, everybody. Good morning. How is it going? How is it going? Awesome. Investors, post your questions, post your comments. We've got some exciting stuff today. And let me go ahead and make this screen the right size. First off, I want to start with this great quote from George Orwell. Now, of course, you know that George Orwell. Let me check the sound. Yeah. George Orwell is The author of 1984, the famous book about government intrusion into our lives. And in so many crazy ways. And many people have. Have called it Covid. I won't even say the word 1984 instead of COVID 19. Because this current situation we are in as a society, as an entire world the human race is in, just gives government great cover to do whatever they want. Contact tracing. You know, there's been a lot of talk about how they're using our phones, our mobile devices to track our movements and so forth. And. And they'll know if you're hanging around people who are infected. And, you know, there's certainly some good reason for this, some good ideas out of it. And then the next step, of course, is to move to the implanted chip, where they implant a chip in all of us. Some have even hypothesized that that chip could come in a. In. In. In such tiny, microscopic form that it could actually be injected. When you think it's just a vaccine. Yeah, I mean, scary stuff for sure, but in. In the world in which we live, you know, if you're on social media, you. You have to agree that this quote is so prescient today. You know, George Orwell said, and this was probably in the 40s where, where this quote originated. I'm guessing it was in the 40s, because, you know, I think 1984 was written in 1949, if I'm not mistaken. By the way, feel free to check me on that and post your answer in the comments. When was 1984 written? The book. And then when was Animal Farm written another great book? You know, because some animals are more equal than others. Ain't communism great? So. So he says, in time, in a time of universal deceit, telling the truth is a revolutionary act. And it is absolutely shocking to me, folks. And I'm sure you have noticed the same thing when you discuss or debate or argue about things on social media platforms or in any form. You know, the lack of critical thinking skills is absolutely. It's astonishing. It's disheartening. It should be huge concern the way so many of us nowadays are just so conditioned. You know, read a book by Noam Chomsky called Manufacturing Consent. Now, Noam Chomsky, I've had him on my podcast before. He's definitely a leftist. I mean, you know, at least I would think so. But, you know, he makes some really interesting points. I don't lean to the left too much too often. Politically, sometimes I do, but mostly not. Mostly more of a libertarian. But Noam Chomsky, in the book Manufacturing Consent really explains a lot of this type of stuff. So in either case, we'll explore that as time goes On. So welcome to Everybody. Check out Jason Hartman.com check out pandemicinvesting.com and get your free mini book there. Pandemic Investing mini book. It's free@pandemicinvesting.com if you're in the United States, you can always call us at 1-800-HARTMAN and to dovetail on to the George Orwell quote. This is one of my favorites. And this is a principle that sadly, the American left just does not understand at all. The tolerant American left, and I say tolerant in snarky quotes. And this came from the French philosopher Voltaire. I don't know, this is maybe 200 years ago, right? Something like that. Forgive me, you know, look it up and post your answer in the comments. Correct my, my citation. But he said, I disapprove of what you say, but I will defend to the death your right to say it. And that is exactly the way we should look at speech. Because it's not about agreeing with someone or not agreeing with them. The important thing is that you defend the concept of them being able to speak, to say what they want. You know, there's a reason that the, the First Amendment to the United States Constitution, which was really the, the first document in human history to ever say, now the Magna Carta before that, a few hundred years before, was, was also to this direction, but the Constitution really solidified it. And, and you know, unlike every government charter before, basically said, look, you know, this document takes away power from the government, tells the government what they're not allowed to do because the individual, like Ayn Rand said there, there's no such thing as group rights. So, you know, you could categorize the government as a group, right? You, you know, everybody's all segmented nowadays into these groups, right? They've all got these special interest groups, you know, their rights, their rights, their rights. You know, and Ayn Rand, and I wish I had the quote on the screen for you, said it so well. She said, there is no such thing as group rights. There's no such thing as group rights. There are only individual rights because the smallest minority on earth is the individual. So, you know, she didn't make this comparison like I'm making. I'm kind of jumping around here maybe a little bit of a leap. But the, the Constitution of the United States said that there is no such thing as, as, you know, group rights in the sense that you can't categorize the government as a group that has certain rights. We want to first say in the first 10amendments the bill of Rights. We want to first say, look it, these are the rights of the individual and they cannot be violated. Now, sadly, what is happening today is the government is using big giant corporations as a private.