MB 062: Is Now the Right Time to Invest in Real Estate? – With Jason Hartman

Perhaps you are hesitant to invest in real estate at the moment because of predictions of an imminent crash. But when is the ‘right time’ to invest? What if I told you that it is always a good time to invest, as long as you make intelligent choices?

Jason Hartman is the president of Platinum Properties Investor Network, a firm specializing in financial planning for real estate investors, and Hartman Media, a production company through which he hosts 20 podcasts that address business, investments and living well. A self-made multimillionaire and serial entrepreneur, Jason has founded 21 companies and initiated several thousand real estate transactions.

Jason obtained his real estate license his freshman year of college and worked part-time for Century 21, learning about the investment side of the industry and developing his own portfolio. He eventually came to purchase and expand his own traditional real estate firm, and negotiated its sale to Coldwell Banker. In anticipation of that check, Jason sought investment advice from Wall Street – and uncovered a need for a financial planning firm-specific to real estate investors. So he created it himself! He is passionate about educating and assisting investors in acquiring pragmatic investments nationwide. Today Jason explains why the media characterization of ‘housing’ is an oversimplification and outlines the different types of markets. Listen and learn how diversification can offer a solid ROI despite market volatility.

Key Takeaways

[4:12] The volatile nature of cyclical real estate markets

• Receive most attention, media coverage
• Located in coastal and trophy cities
• Can make or lose a fortune

[6:00] Jason’s take on Wall Street financial planners

• Little creativity
• Don’t use the product themselves
• Best sales force (easy to invest)
• Worst product

[6:53] What Jason learned in researching different real estate markets around the US

• Three types of markets – linear, cyclical and hybrid
• Invest in more than one market for a solid ROI

[8:56] Why Jason founded a financial planning firm for real estate investors

• Real estate has the best product, but worst sales force
• He created the business to be his own customer

[11:22] The misleading nature of media coverage of ‘real estate’ or ‘housing’

• Cannot lump all markets into a single category
• Differentiate by product type, price and market (linear, cyclical, hybrid)
• 400 different markets in the US
• Case-Shiller Index only profiles 20 metro areas, 15 of which are cyclical

 [12:54] The differences among linear, cyclical and hybrid markets

• Linear markets grow slowly over time
• Cyclical markets are like a roller coaster
• Hybrid markets fall somewhere in between

[16:04] Jason’s advice to investors with much equity who live in cyclical markets

• Use available tools and technology to invest outside your immediate area
• Diversify geographically (three to five different cities)
• Deploy equity in linear markets that generate a good yield

[18:30] Why Jason cautions investors against cheap properties

• 12% of Americans unbanked
• Difficult to collect rent from C and D class tenants

Connect with Jason

jasonhartman.com

Creating Wealth Podcast

Resources Mentioned

Marcus & Millichap Multifamily Investment Forecast

IRR Viewpoint Report

Milken Best Performing Cities Report

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building