Posted over 1 year ago

Jason Hartman Profits in Paradise - Oct 2019

Having recently returned from a Jason Hartman property tour, adjacent to Orlando, it seemed fitting to share what it was all about.

Friday was an optional property tour, with one of Jason’s preferred partners. The last time I attended one of these tours, the partner was rehabbing existing single family houses in the Deltona area. On this tour, we encountered an experienced building professional, who was building new houses and small multifamily properties. 

We experienced a new property partner, a new location - Ocala - and newly built properties.  I’d never been to Ocala, and was surprised to find that there are rolling hills, and grassed lots; the area looks very different from the Space Coast where I’m currently investing.

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That said, the builder has purchased a large number of building lots that are scattered among owner occupant houses. Some of the properties being built are plex units, and others are single family houses. We viewed properties in various stages of the building process, from poured foundation to a unit that was nearly completion. Attention to detail was shown, with a thicker granite on bathroom cabinets, pleasant floor plan with high ceilings, dark finished cabinetry, that was a step up from the typical contractor grade oak, often seen in new developments. My eyes rested upon the regular knockdown texture which added a modern finish to walls, extra trim at baseboard and cabinetry, a higher finish to an entry level housing product. Four-plexes consist of 2 bed, 2 bath units.

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We later experienced a briefing with the team who are putting these deals together, and heard about the reason this location was selected, the demographics, potential tenants, in-migration to the area, and commercial building projects such as the new Fed-ex distribution plant & the World Equestrian Center that is nearby.  These, and many more employers are beckoning new tenants to the area.  Gainesville is to the N and Tampa to the S, so Ocala is primed for newcomers.

I was fortunate to find myself sitting with Aunt Joanie, who has been interviewed on Jason’s podcast, as she is a stellar investor in her own right.  She was upbeat, and shared her system for growing a portfolio over the years, which include her passion for houses that were solidly built in the 1930s and 40s.

One of the hourly sessions consisted of investor friendly lending team, Joe and Maggie. We discussed what to do when you get “Fannie and Freddie’d out” which means a switch to portfolio products.  Joe talked about FICO scores, how to evaluate mortgage products, a bit about 1031s from the lender’s perspective, how much is needed for reserves at this time, a word or two about rate locks in relation to the new construction products (as we are not always certain when the closing will occur).  Also mentioned was a service he offers to improve credit scores.  Lastly, he mentioned the ideal debt coverage ratio from his perspective as a lender.

Real estate investor, author & Rabbi Evan Moffic talked with us about finances from the perspective of the spiritual investor. There are myriad lessons in the Bible about how to build wealth, and what we should do with the money we earn. 

Speaker and author James Malinchak encouraged all attendees with his enthusiastic message in two different sessions, reminding us that an investment in ourselves is the best investment.  He encouraged us to put great thoughts into our heads, and limit the garbage thoughts.Your mindset up-levels your success.

Jason also spoke to us about some of the books he recommends, such as Rockefeller Habits, Confessions of an Economic Hit Man, Life in Debt, and Power Shift.  He spoke to us about the various centers to make money with single family houses, including how the Federal Reserve and the current system of money works in the US. His discussion of Optimization Vectors helps to make sense of several “teeter totters,” such as the focus on cash flow vs appreciation, location diversity vs optimum management efficiency.  

One of Jason’s strengths is his in-depth knowledge of economics and how to relate the forest to the to bring the big picture down to the newer real estate investors. In this vein, he talked about real vs nominal value, how inflation destroys debt, and how to succeed over time with property. 

Mitch Russo, author of the Invisible Organization illustrated how to turn a physical business into a digital cloud-based business, how people often work more efficiently and happily from home, how to change the flowchart of processes and people from a location-based entity to a successful cloud based business.

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The group of us, about 45 strong, played a real estate game together, where we evaluated properties based upon a variety of parameters such as location, builder, age, cash flow, condition, cash flow and possible appreciation.  Our choices were evaluated in a further session, but it helped us to meet, talk and work together. 

Who is this program tailored to? The beginning investor, all the way up to the seasoned single-family-home investor.  One of my new acquaintances has picked up 53 houses since our last introduction, 4 years ago.  Several of my new acquaintances are at the newer end of the spectrum,  looking to make their 2nd or 3rd house purchase. 

Jason’s approach is informative, inspirational (encouraging  vs one particular religious viewpoint), based upon logic and a deep understand of how wealth is made with single family houses, and taking into account economic market cycles.  This is not a trendy guru, selling the latest fads; rather this is a seasoned expert who aims to bring other investors alongside, on the path towards long term wealth.