Jason Hartman starts the show with client Naresh to look at the beginning of his journey in income property investing. Naresh explains why he is also investing in the stock market and cryptocurrencies. He also gives listeners insight into his next rental property purchase.
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This show is produced by the Hartman media company. For more information and links to all our great podcasts, visit Hartman media.com.
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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 multi millionaire 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 on now. here’s your host, Jason Hartman with the company LEED solution for real estate investors.
Jason Hartman 1:03
One of the unique strategies I implemented a few years ago fit with my 10 commandments of successful investing, especially number eight, thou shalt borrow to accelerate wealth and reduce risk. And number 10 thou shalt only invest in tax favored assets. So my money grows tax free, and I can leverage down payments. My friend Pat Donahoe his team at paradigm life got me started, and I have a few accounts with him now. Check out this perpetual wealth strategy at be your bank.com
Welcome to the creating wealth show, Episode Number 925, nine to five. This is your host, Jason Hartman, thank you so much for joining me today for another episode. We have a few things on tap for you today. We are going to talk a little bit about the five year plan because you don’t have much time to enter that contest. But we have a client case study here with us who will touch on it His five year plan he’s been on the show before, we will talk a little bit about the GOP tax plan. We will talk about interest rates, where are interest rates going very impactful for real estate and the three dimensions of real estate, as I like to call it. And we’ll probably talk a little bit about the dollar and what it means to people around the world. So welcome back a returning guests no rush, how you doing?
Naresh 2:27
Doing awesome. Jason, pleasure to be back on and this time as a client? Yes, it was a client last time I was on I think you were
Jason Hartman 2:35
client last time, but I don’t know I could be wrong about that. You’ve got now two investment properties in your portfolio. And you are engaged to be married. So congratulations, nourish. How are you about 27 now
Naresh 2:48
now I’m turning 29 at meet the Masters coming up in January. Yeah,
Jason Hartman 2:53
I know. Isn’t it cool that you are spending your birthday with us and with Ron Paul actually. So that That’ll be pretty cool. That’ll be a good birthday present for you. We appreciate you coming out on your your big day. So good stuff. Well talk a little bit about your plan now you know you’re renting an apartment I last time I checked at least I don’t know if you change your housing situation. you’re renting and you’re buying investment properties. Now most people your age especially engaged to be married, would be thinking, wow, I gotta buy a house. I gotta buy a house without the proverbial white picket fence. Or at least a little condo or something. You know so the wifey and I can live in that. What are your thoughts?
Naresh 3:34
Well, Jason, I’ve been listening to you for many many years your podcasts I’ve read your materials. I live in Florida and Florida I know is a pretty good market, relatively speaking housing market and you do cover Jacksonville Orlando, New Port Richey or Port Richey. But where I live in the heart of Tampa Bay, the properties just don’t.
Jason Hartman 3:58
Yes,
Naresh 3:59
exactly. Yeah. Exactly, you run the numbers, you crunch the numbers. I mean, it’s it’s actually kind of crazy. A friend of mine bought a course it’s a waterfront penthouse. So it’s going to be overpriced, but cost about $600,000. And the rent that he would get out of that would be less than $2,000 a month.
Jason Hartman 4:17
But you he could get 2200 for that. I’m just guessing. I’m just guessing but those
Naresh 4:23
21
Jason Hartman 4:23
Yeah, it still does work. Yeah, yeah, you’re upset that
Naresh 4:26
let’s be conservative and say are liberal and say 2200. It still doesn’t work. Not that I want to move to a waterfront penthouse. But the properties the places that you want to live in and start a family. Those are right now overvalued. Now, that was not the case. Five, six years ago. Now, I didn’t live here five, six years ago, and I didn’t have any money. Five, six years ago, I was just out of college. Duke University. Right.
Jason Hartman 4:51
You went to Duke? Yeah, I was. I was finishing up my master’s degree, what, six years ago? Yeah, six years ago, five, five years, five or six years. So nourish To give a little background a little context for you, you got your masters at Duke, where’d you do your undergrad?
Naresh 5:04
undergrad was at Syracuse University. So you know
Jason Hartman 5:06
Syracuse and upstate New York and then Duke for masters good stuff. Good stuff. So what are you doing being our client and working for us? I mean, by the way folks nourish has been on the show before and just if you didn’t listen to those old episodes, no fresh books guest for the podcast and does some other odd things for us. In fact, I was teasing you the other day in Russia talking to someone else about you and and saying no, Russia, you know, because Andrew zetland, who you booked as one of our speakers that meet the Masters, he dubbed you as the fixer. I love fat. I just love that. When I when I had him on the show. He’s of course the Moneyball economist. He’ll be speaking at meet the masters. I said yeah, no rush is the fixer. And so I was telling someone else about you. And I said, Yeah, you know, you need to like smuggle arms and the North Korea, no rush. You need to
Naresh 5:57
you need to
Jason Hartman 5:59
get in Athlon on your podcast nourish you need to book them for meet the Masters nourish. You just got to do all these funny odd things, but you worked for a Gora financial and Porter Stansberry before a lot of our listeners now know him and know them. We’ve had a lot of those guests on the show over the years but really got an interesting background you’re very well networked. You’ve authored several books now maybe we’ll touch on one of them because it kind of is interesting for this conversation. But you don’t want another day job do you? I asked you that when I saw you recently I said hey nourished you ever want to get a corporate job again? And you said no way?
Naresh 6:34
Well, Jameson, I don’t know if you’re a member, but the first time we spoke, it was because I believe it was Brittany who your listeners know reached out to Stansbury which is where I was working. I helped launch the Stansberry Radio Network, which is now back in action and Porter Stansberry has his own podcast. I think I was a first person you had been trying for years to get in touch with Stansbury and nobody responded. And I was the first person who actually responded With my email address and phone number, and you gave me a call, and when I was talking to you, this was five or six years ago, when I was talking to you on the phone, you told me about your company, and you said, You used to have an office, you had to use to be a bit corporate, you had, you know, 30 some odd employees, but you cut all that, and now everything’s virtual, and you’re making a lot more money and you own all these real estate properties. And you’re traveled to 100 countries, or however many 81 you have
Jason Hartman 7:28
no rush you you’re just really loose with the statistics. So I had like, 60 Well, in my old company that I sold to cold, why’d like 64 people working for me 64 I think at the time of the sale, and that was a huge hassle babysitting job, I kind of hated it. But I love some things about it, too. Then in you know, the other iteration of this business there nationwide real estate investment business. You know, I had many, many people working for me in offices and so forth. And, you know, it’s just I felt like I was being like a facilities manager. too, I just, it was like, every day, there’s some new issue with a landlord or the office space or, you know, the tenant above us has a pipe that burst and it’s flooding our office. It’s like, these are all just distractions. You know, I just, I just want to do my work. I’m so passionate about it. I love it. And so yeah, we went virtual in 2012. And everybody likes a better and I remember the app Foursquare, this is just a commentary folks on how times are times they are changing, who said that Bob Dylan, I think, and we’ll get back to nourishes client case study here in just a second won’t be a long tangent. But you know, this is what I talked about. And this affects income property investing and it affects the way your tenants think, and the way prospective homebuyers think because I have talked about this before and it’s purely an anecdotal observation, and I’ve dubbed it the portable society. Okay. As we’re all living in the sharing economy, technology has enabled everybody to geo arbitrage as Tim Ferriss called it, I had dinner with Tim Ferriss about two months ago in Austin. You know, people can live anywhere they want now that it’s not about the physical space anymore. It’s about the intellectual property that’s going on between your ears, okay, that’s what it’s about. And it’s about the power of the network that you have. And those kind of resources. That’s what we offer to our clients. You know, having a big office is sort of irrelevant. Like, who cares? No, nobody really cares. And so this affects you as a real estate investor. Well, why Now this may sound minor, okay. But everything I said plus this one. So I have noticed that my own personal household, all of the stuff I have, you know, there’s this whole movement about called the tiny house movement and this movement toward minimalism and so forth. And I’ve noticed that all of my stuff is just getting smaller and smaller and more powerful. You know, in the old days, I mean, I’m, well, I used to be at least a bit of an audio file, right love music. Okay. And by the way, folks, I have excellent taste in music. Just so you know, you’ll hear that I meet the masters. You know, all of my like, electronics are so small. All of my computers are so small, they’re so portable. Now, you know, this stuff used to be big. I used to have a big rack of Denon components and big speakers. And now I can just pick up and move so easily, you know, and I can live anywhere, the stuff that I really need, even though I have way more than I need is really not that significant. You know, like you could fit it all in a pretty small space and it’s easy to move around. So this is the portable society concept. And it intertwines with the sharing economy concept with the Airbnb s and the VR beos and the Uber and Lyft and all of these sharing economy concepts, like if you live in many cities, He’s now you used to always own a bike. Now you don’t even need to own a bike. There are all these sharing economy bikes dams everywhere, where you can rent bikes, you don’t need to own a car. There’s all these really unique modern sharing economy or not even sharing economy, all of them. But just you know, like rental car options now where you can walk up to cars you can find on your phone, in virtually every neighborhood. This is very big in Austin. I can’t remember the name of it, but they got those little smart cars, you know what I’m talking about. You can just walk up to a car you don’t even own and, and your phone will open the door and start the car. And you can just rent it by the hour. And you know, do your errands and you’re done. Just park it anywhere. And someone else will just pick it up anywhere wherever you leave it. It’s an amazing time to be alive.
Naresh 11:46
Well. So five, six years ago when we spoke I didn’t know about any of this and Uber wasn’t around back then. For example, Airbnb wasn’t around, but you actually opened my eyes because you told me how you got rid of The office and your virtual. And you also Matt, I don’t want to be liberal with the statistics again, but you said something like, like you were the CEO of eight different businesses. And I was just like, what I was trained my entire life to, you know, go to school work for a company get a job. Yeah. And so it just kind of blew me away like, Whoa, you can live the dream in a penthouse, who I think you were in Arizona at the time, living in a penthouse, and it just opened my eyes. And five, six years later, I don’t want to say that I am up to your level by any means. But I bought my first income property a few months ago and looking to buy many, many more over the next couple of years. Yeah.
Jason Hartman 12:43
And you’ve got your other you’ve got your other one under contract now. That’s awesome. Yeah. And so let’s talk a little bit about your five year plan. But folks, the message here is that some of us really get like this. We just have old ideas. And the world is like changing all around us. And some of us don’t even realize it. You know, I’ll give you an example. I mean, I have many friends and I noticed this is right and they’re not much older than me. Okay, these but these are the younger baby boomers. Okay. Thankfully I’m a Gen X or barely okay, but I I’m a Gen Xer, okay. And in a rush, you’re a millennial. So these are the different demographic cohorts, but they just, they have very old fashioned thinking, like, it’s all about the big space in the status like nobody much cares anymore about status. You know, there are all these people that I know that are still talking about this, like these old paradigms. They’re just don’t apply the world just does not care. One of them and nourish Hey, listen, you spent a lot of time and money on this is the college degree paradigm. Okay? You know, you went to a prestigious school, you know, hey, You did it. It’s done. But you probably wouldn’t do it again today, I assume, right?
Naresh 14:04
Well, I’ll say when I have kids, it’s going to be a completely different scenario. And you’re absolutely right. I actually think that it depends on the personality. Jason, I think for people like you and me, college can be a complete waste of time. I mean, it’s great for partying, it’s great for, you know, other things. But when it comes to business, making money, the future doesn’t really add a whole lot of value, and 30 years, 20 years, 30 years from now, when you know, hopefully I have kids and they’re getting ready to go to school, it’s going to be a very, very different,
Jason Hartman 14:36
it’s a very different world, the world is changing faster than it’s ever changed. Geography is less meaningful than it’s ever been in human history. And what this means for investors, one of the many things it means is it means that rentals are becoming more and more and more attractive. And I want to talk about this in a moment after you finish Your comment, because I’m really good at interrupting you. Apologize. But one of the things this this also integrates with is the GOP tax plan. And I want to play a little video about that just a sort of a funny video that I think the listeners will enjoy. But yeah, just finish up on your thoughts. And then let’s jump into the GOP tax plan. And let’s talk about interest rates a little bit too.
Naresh 15:24
Okay. Well, I want to go back to the real estate thought really quickly. And then we’ll get into the GOP topic, but I’ve been investing for nearly 10 years now. I started investing when I was in college and it started with the stock market because that’s just kind of the norm here in this country. It’s oh you have money that you want to play around with invested in stocks. So I got started around the financial crisis time. And then I got introduced to new out newer asset or other asset classes like gold and silver precious metals, and then through you I got interested in real estate. And I can say as of right now I’ve only been a client for maybe six months, but I’ve been able to sleep much better at night with my real estate investment than I have been with the stock market with cryptocurrencies with, even with just putting money I’ve tried just putting money in a CD or a savings account. And I’ve just seen better returns with real estate. And I haven’t really lost any sleep maybe an hour or two during the buying process. But outside of that, it’s, you know, knock on wood, things have gone really, really well. And I think the problem in this country is in the education system, the financial, you know, the finance professors in college, for example, they don’t talk about real estate, I had no clue and go, you know, I’m a pretty qualified individual. I had never learned about real estate investing until I met you and started listening to your show. And it wasn’t until about three years after I met you and started listening to your show that the light bulb went off and I said, You know what, let’s stop paying so much. attention to the stock market. And let’s start looking at real estate. It’s really a really awesome way to get cash flow and to preserve wealth. So Wall Street now you know,
Jason Hartman 17:11
good good i got i had you with ROI. Like, yeah, give the Jerry Maguire movie you had me at hello? Had Yeah.
Naresh 17:21
And you know the money let’s say, you know $1,000 home, I could put that money in a CD and I’m getting 100 bucks a month
Jason Hartman 17:28
$100,000 home you meant to say,
Naresh 17:30
yeah, I’m sorry $100,000 home. And if you put that money in a CD, save 2% CD, that’s what 200 bucks a month, you can put that in the stock market and you have no idea what you’re going to be getting moving forward because stock market could crash or if you put it in a individual stock, you have no idea where the stocks gonna go. crypto currencies, I mean, I’d probably be
Naresh 17:54
looking at all gyration you’d
Jason Hartman 17:55
be you’d be up 1,000,000% and then down, you know 700,000 percent in like a day. Exactly.
Naresh 18:03
Like, it’s too much, you know, and and we’re not doing those, Jason to at the end of the day, I think all of us are getting into investing because we just want to be happy and live, live free lives and you’re not free putting $100,000 in cryptocurrencies and you’re seeing 40% swings every two or three hours. Yeah, you’re
Jason Hartman 18:23
gonna be you’re gonna be stressed. You know, I think people that speculate don’t call it investing because it’s not investing that speculate on cryptocurrencies or even you know, cyclical markets or anything, okay. There’s sort of a little it’s a risk of offending people. Okay, this is not like a slam, but look, we all have we all do this, okay. Every human being on Earth would love to get something for nothing. Okay, so, I’m not saying that I’m any different than anybody listening, okay, I’m, I’m just like you, you know, we’re all human. We all have the same Thinking about things in the same psychological makeup. Basically, it’s all the same. But you know, it’s kind of dishonest, right? To do something that’s just totally speculative. It’s sort of like waiting for your ship to come in rather than swimming out to, right. There’s not a legitimate capital creation that you know, has a multiplier effect of creating wealth in the world. It’s just gambling, okay? It’s just total gambling. That’s all it is. The other part of it is, is that you’re going to have, at some point, PTSD, post traumatic stress disorder, okay? Because one day and I don’t know when that day is gonna be, you’re gonna lose a ton of money. Okay, it’s coming, it will happen. It already happened with Bitcoin. Okay, people lost their shirt a couple of years ago. And now the bubble is much, much bigger. And the thing that interestingly, nobody He is talking about is how this whole thing becomes a super cumbersome disaster as it grows, because the electricity and the computational power to process a coin transaction or to mine a coin is unfathomable. It’s fake work. It’s environmental destruction. And look at it if someone was actually using this in commerce, I would believe in it much more. Okay. Yeah, I know overstock accepts it big deal. Naresh, you book, Patrick Byrne on the show. He’s great. Love him. And I’d love to be wrong about all this stuff. I’d love to be wrong. I’ve said that a million times. But the whole thing starts caving in on itself at some point because the weight of just processing a trade of me transferring a coin to you or vice versa. takes like a week of energy. That it would take to run a house for a week. That is totally unsustainable. Okay, it’s nuts, it’s nuts. And then to mine a coin, it takes even more. So this whole thing is just it’s craziness. It’s absolutely, folks we are living through tulip bulb mania. and to a lesser degree, we’re living through that in the stock market. to a lesser degree, we’re living through that in the cyclical real estate markets that you know, the high flying markets on the west coast in South Florida in the expensive Northeastern markets, expensive trophy markets around the world we’re living through that in the linear markets not so much those are the markets we like obviously so you bought your first two investment properties in Memphis nourish, and that’s a very linear boring market. So not part of bubble Ville. not part of bubble though you don’t have irrational exuberance Do you nourish
Naresh 21:54
I used to I suffered from that has two or three years ago And I’ve kind of learned maybe if my brains matured more and I am fine with knowing exactly how much and cashflow I’m going to be making every month, and like you say, appreciation, I don’t even think about it. There could be a real estate crash and as long as my tenants and they’re paying the rent, I’m happy. You’re planning to hold long, long, long, you’re happy as a clam and folks, clams are always smiling. So they’re very happy. Okay, bad humor. I’m just not good.
Jason Hartman 22:29
Okay, I will not be taking up comedy anytime soon, folks. Let’s talk about your recent trip to Colombia. There’s an interesting piece of education here for people who, you know, we got to get onto the GOP tax plan too. But the cryptocurrency thing or so you know, you got all these people that believe that the dollar isn’t backed by anything. I’m so sick of hearing that. See money. Well, what do you think cryptocurrency is? Total Fiat just because it’s not Fiat by decree or authority of any government. It is decentralized. I love that about it. Okay? It’s still Fiat nonetheless, because it has no intrinsic value what so ever. Now the dollar has intrinsic value because it’s got a long, long history. And it’s got a huge, huge military behind it and a huge brand called America behind it. The American brand is, is the world’s biggest brand. It’s bigger than Coca Cola. It’s bigger than anything, nothing is bigger than the American brand. No brand has more value than the United States of America brand. And I’m not being some kind of patriot saying that I’m just it’s just the truth. It’s reality, okay. may not be that way. In 500 years, we will see maybe the Star Trek Federation will have the biggest brand by them. But, you know, today, the United States owns the world’s biggest brand and its currency is the dollar. That’s the extension of the US brand. So you just got back from Colombia, you were in where meta gene as they say not meta gene meta gene. I think the gene meta Gene metazine. Tell us about it. So we’re there like beautiful women everywhere because I’ve never been to meta gene or Colombia at all. And my cousin married a Colombian girl. I’ve had a few friends that have like, moved down there and live down there, you know, single guys and, you know, I don’t know. Tell tell us about tell us about how hot the girls were before we talked about the value of the dollar. Well, you’re engaged, but I’m single. So I need to know this. Yes.
Naresh 24:33
I’ll be quite frank. This is no bias here. But I was a bit disappointed in the local women disappointed meaning kind of like a que I have several friends who moved out of the United States. They moved to meta gene. And they told me about how amazing it was it was paradise and you know, the women are cheap. It is a flu.
Jason Hartman 24:55
As long as you don’t get kidnapped, you’re pretty good. kidnappings are down. 72% in Colombia
Naresh 25:03
Okay, go ahead. And so I guess I might have gone in with with high expectations but I actually think that where I live in Florida, I found better looking women especially near the because I live near the water and that you know, pretty much on a beach. I found the woman here to be.
Jason Hartman 25:20
I’m moving to Tampa now. Okay, and before you know, every everybody listening is gonna think we’re totally shallow and stupid here. So, or sexist one or the other because God forbid everybody’s a sexual criminal nowadays, but some really are sexual criminals. So I don’t want to minimize that. Okay. And we just had the election with good old Roy Moore who lost I guess he hasn’t conceded yet. But that was yesterday, literally. So it looks like he was definitely punished for that. Maybe he is a bad guy. I don’t know really, you know, haven’t followed the story much. So what happened to your friend in Colombia, there was a robbery right Columbia is known for this. What was available to the robbers What was left? What did they take? What did they take? Tell us about that.
Naresh 26:04
So this is quite interesting. As soon as we got to Colombia or two, we had tour guides, and you know, you’d brought up the crime and the safety issues. So we had tour guides or essentially taking care of us, not necessarily our bodyguards. And so, yeah, there was one guy in our group who got robbed. He had his full, you know, he had electronics within he had his wallet, he had a lot of different things. But the only thing or the only item that was taken were US dollars. And it wasn’t even a lot of US dollars. It was, you know, maybe 15 $20 not even a $20 bill was like a 10 with a bunch of ones.
Jason Hartman 26:45
Okay, so the 10 five ones was taken. So $15 us is what they took. And what they had available to them was over whatever over 1000 pesos, I think, and it
Naresh 26:57
wasn’t, it was it was more probably more than that. 50,000 pesos maybe how much? What’s the version? I have no idea what the conversion is, by the way on the peso, you know, 50,000 would be about, okay. $16 and 50. Okay, so they didn’t take the pesos at all. They just took the dollars, no electronics taken, no pesos taken. Really nothing was the only thing was US dollar. So our tour guide, they warned us ahead of time and they said, the US dollar holds a lot of value not just in midday gene or in Colombia in general, but in South America as a whole. And they said it’s even worse in Venezuela. I don’t know
Jason Hartman 27:34
if I’ve ever even better or you should say maybe not worse. Is that not even the right word? But Venezuela Oh, my God, they’d love to have us dollars I’m sure but they’d probably love to have guns and bullets more than anything. And you know, food Venice. What’s happening in Venezuela is just absolutely tragic. It’s completely disgusting. So okay, nourish. So that’s an interesting story about the strength of the US dollar. That is the lesson the almighty dollar. This interviews run into Little bit long, so we’re gonna stop it right here. We’ll pick up the rest of the interview on the next episode of The creating wealth show.
Jason Hartman 28:13
Welcome to meet the masters of income property investing. I’m your host Jason Hartman. Join us in beautiful La Jolla, California on January 12 through 15th. This is your chance to meet the masters of income property investing. Learn from an amazing collection of experts all in one room. You’ll meet a ton of local market specialists, mortgage lenders, tax professionals and investment specialists such as Jeff Myers of Myers research, and john Byrne’s real estate consultant. Learn from Robert Kiyosaki Rich Dad advisors Ken McElroy, his real estate investment expert, and Garrett Sutton is attorney who specializes in asset protection. Find out what leading economists are predicting for 2018 including Danielle DiMartino booth, founder of money strong LLC and Andrew zachman. From Moneyball economics. hear from leading entrepreneurs how to maximize your income streams, you’ll learn unique financial strategies from Patrick Donahoe of paradigm life, and how to give birth to a brand from Brian Smith, founder of UK Australia brand. This year also features a very special guest, Dr. Ron Paul, former Congressman, presidential candidate, and staunch advocate of liberty. Right now you can upgrade your ticket to include VIP access and a dinner with Dr. Paul. Enjoy a fine dining experience and fascinating conversation. Seats are limited so upgrade your ticket today. Ask questions and learn why real estate is the most historically proven asset class. Armed with new information, you’ll have the confidence to take massive action as the saying goes, don’t wait to buy real estate. buy real estate and wait. Surround yourself with like minded People and build friendships that will last a lifetime. share strategies and tips with other investors and hear about their successes and struggles. Make 2018 the year you decide to achieve your dreams. Real estate is a proven way to create true wealth within your lifetime and achieve long term financial independence. Don’t wait. Join us in La Jolla. Reserve your seat today.
Jason Hartman 30:40
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