Jason Hartman and Investment Counselor Oliver are on the podcast to talk about current market conditions, the importance of attending live events, and a solid foundation of linear markets. They break down the benefits and gave an example of how to get rich with linear market properties. They also discuss why it’s good to have a portfolio that includes a smart mix of linear and hybrid market properties to continue to grow your wealth no matter the economic climate.

Announcer 0:00
This show is produced by the Hartman media company. For more information and links to all our great podcasts, visit Hartman media.com.

Announcer 0:13
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 leet solution for real estate investors.

Jason Hartman 1:03
Welcome to the creating wealth show this your host Jason Hartman with episode number 845 845. Thank you so much for joining us today, listeners from around the world in 164 countries. We’re always glad to have you and we appreciate you following the show, referring people to the show rating and reviewing the show on whatever podcast platform on which you’re listening. That is much appreciated. So it is a hot hot day here in the no income tax state of Nevada. I’m here back in Las Vegas from my whirlwind trip in New York City. And that was a busy busy week in New York City. I’ll tell you a lot of interesting things I did there. And one of the things I was talking about when I was talking about my visit to the Tony Awards, it’s just so interesting how how like hypocritical this whole Hollywood crowd is and you know how this kind of elitist mentality of everybody else should do all this stuff. But you know, we we the elite class, we’re not gonna follow any of this stuff. So it’s just kind of ridiculous. And, you know, all of you listeners are smart. And you know, you get it, you know, but you get an outsider occasionally that listens to the show. And, you know, they pop in for the first time, and they don’t just know what they’re talking about. And so they, why do you say that? That’s ridiculous, you know, but it’s not ridiculous, folks. It’s, you know, there’s this old concept, lead by example, practice what you preach. And that’s what we try to do here. When it comes to real estate investing. You know, we’re very transparent about what’s going on in the company, what’s going on? what I’m doing with my personal investment portfolio. I talk about that all the time. And it’s just really I think the way to be I think it’s the way to live. You know, Abraham Lincoln, I remember I think it was Abraham Lincoln, maybe Miss attributing this quote, a long time ago, he talked about how, if you always tell the truth, you don’t need Have good memory. And the older I get the worst my memories getting. So you know, there you go. It’s just interesting. So back from New York back in Las Vegas, but it is so hot here I there’s a heat advisory this weekend’s gonna be like 115 degrees. But pay, you know, with all the money you save in taxes, you can afford a lot of air conditioning and a lot of trips to cooler places. So that is one of the big things that I really recommend if you can do it, if you can plan your life out, maybe you can’t do it now. But in a few years, see if you can get yourself living in a no income tax state. The lower tax jurisdiction makes a huge difference. The lower or zero tax jurisdiction makes a huge difference in your overall wealth accumulation. You know, you do that for 510 years, and the compounding effect. Remember Einstein called compound interest, the eighth wonder of the world of not paying taxes because You know, income property, of course, is the most tax favored asset class in America. But also if you can set up your, your jurisdiction, as such, it can really, really help you grow your wealth a lot faster. And that’s what we’re all about. So today, I thought I’d bring one of our investment counselors back on the show. And that is all of our Oliver. Are you there?

Oliver 4:20
Oh, you bet. I’m here, Jason. It is fantastic. Great to be back on the show. I know. It’s been a little while.

Jason Hartman 4:25
Yes, it has been a little while. So I’m glad to have you back. And I just thought I’d ask what is going on in your world, give our listeners some insight into the real estate investment marketplace. What I want to do is just give people some, you know, sort of firsthand on the ground, no boots on the ground type of feedback because you are talking with clients every single day. You’re helping them find good quality investment properties in all of the different markets in which we work and recommend. And you know, you’ve got your finger on Paul says all of our investment counselors do kind of what are people saying out there? How’s it going? Let’s just kind of dive into some of those topics.

Oliver 5:08
Well, Jason, it’s been a very, very busy year. So far, clients have just been very hungry for properties. They’re very excited about the markets that we’re into. And what I’ve noticed is there’s a definitely a snowballing effect. But I’ve seen as that as the client start to roll in and maybe pick up one or two properties, when they start to really see this happening. When they’re accumulating that cash flow every month. They see those monthly deposits come in and they start to get excited. They see it, they start to get excited, they see this really happening. And that’s the biggest thing is that some of them may have come into it. non believers or maybe just a little skeptical, they decide to you know, maybe put their toe in the water, try it out with one or two properties. Once they see it’s working. They just dive right in. And I’ve got some fantastic clients that have really taken a dive, really taking the plunge. Now one client His name is Adam, he’s in Connecticut. I’ve been working with him for only nine months now. And he is already on his 11th property and cash flowing over 30 $500 a month.

Jason Hartman 6:11
That’s fantastic. You know, you come into this as either a believer, a non believer, or maybe you’re just kind of agnostic, you’re not sure, but you’ll try it out. So you buy your first property, and hopefully it all works out. Well, this is far from perfect. Be the first to say that there are problems and and you know, hopefully you don’t, you know, that’s the thing. When you get those problems, right in the beginning, rather than waiting five years to have your first like bad tenant, for example, or surprise repair bill that can really derail your plan. You’re gonna have problems, okay. That’s why we have reserves. You know, I say that at least 4% of the value of your portfolio should be cash in the bank reserves. So if you have $1 million worth of properties, you should have 40,000 dollars in the bank as reserves for vacancies and eviction, surprise repair bill, whatever it is, but it does become very addictive. And it’s amazing because it’s a multi dimensional asset class, the returns you can earn now, what you said there for your client in Connecticut that has now purchased 11 properties and, you know, we’ve got people one or two properties in the beginning, you know, some come right into it and say, I want to buy two dozen properties, some people, you know, buy a lot more than that, okay. But 30 $500, you know, people to the to the uneducated listener, who may be just popped in and is hearing the show for the first time they might be saying, well, 30 $500 11 properties big deal. How are you going to get rich doing that? I make 15,000 a month in my day job. Well, there’s more to it than that. Okay? Because, like the iceberg that sank the Titanic. There are A lot of it is underwater, you don’t see it. It’s not readily obvious. You’re simply talking right now about cash on cash return. That’s it. There’s more dimensional return from the investment than that. There are tax benefits. There’s equity pay down. There’s inflation induced debt destruction. You know, there’s the power of leverage because with to create that 30 $500 a month in positive cash flow. And you probably don’t know this number offhand, Oliver, so you’re not gonna probably be able to answer it, maybe you do. But how much do they he actually have to put into that portfolio to buy those properties. And that, I want you to make the point of what you said to me before we started recording from our Memphis property to her recently, you talked about how the downpayment is not money you’ve lost. So anyway, tie those two together because I think those are instructive.

Oliver 8:56
Definitely. In terms of my client, he’s had to put in Anywhere between off the top of my head, I think it’s about 150 to about $200,000 or So somewhere in that ballpark.

Jason Hartman 9:06
Again, no one’s gonna be impressed hearing this now, because a 30 $500 a month $150,000 in really big deal. What’s great about real estate,

Oliver 9:18
there definitely will be people that will say that there’s no doubt about it. The most important thing, this is something that really came to light after speaking to one of our lenders at the Memphis event. one really important thing to notice, and let’s use the example of a house that’s $100,000. All that a lender is required right now 20% down payment, plus the closing costs. So I want to give the example of that $20,000 that’s going towards the downpayment, plus, let’s say $5,000, in closing costs, what I’m really want to make apparent to the listeners is that $20,000 you put into the property that doesn’t ever go away, that stays that that’s part of the equity that you now own in the home. What you are essentially paying for these houses is that $5,000 closing cost these that that’s pretty much what you’re doing to acquire this house.

Jason Hartman 10:09
The rest of the rest of it is money in the bank so to speak, right? It’s just exactly that that’s the savings account, because that’s equity. But I do want to kind of correct you on one thing. You said that that downpayment on the property never goes away. Now, it can go away, because the market can, you know, depreciate and that equity can evaporate, however, the likelihood is that it won’t happen. And even if it does happen for a period of time, it will come back in even greater quantity as history has proven over and over and over again.

Oliver 10:46
Exactly. Jason. So with that said, there’s such a drastic difference between the linear markets that we’re in where even if the market did take a pretty big hit and went down, let’s say 10% compared that to the coastal cities where the average price of the home like that In California, in San Diego, the average price of the home is $750,000. If that went down 10%, that’s 75 grand, that’s a lot of money. Not just that, but the rents here don’t make any sense. Whereas the big difference is that in these linear markets that we’re in, even though the prices may go down a little bit, you’re still going to be renting the house for almost the same amount that you were renting at the previous year. And even if it did go down a little bit, you may take a small hit on your overall cash flow. But that’ll go up as the years progress. And as you hold on to that property, the only time that you’ll actually lose is when you sell that asset. If it’s if it’s not cash flowing, you know, it’s a different story, but these will still be cash flowing, even if they did take a 10% hit.

Jason Hartman 11:40
Yeah, no question about it. So the linear markets much safer. Our plan is a very conservative plan as a, you know, regular listeners now, and that’s a that’s a very good point. Okay, so, so the only real cost of acquisition when someone buys a property are the closing costs because those are a cost of The transaction, so you lose those, your down payment is not an actual cost. And that’s a, that’s a good way to look at it. That’s simply savings. So if you’ve got money in the bank Now, let’s say you’ve got $200,000 in the bank, and you put that $200,000 into properties and you buy eight properties with it, for example, then the only part of that money you’re going to spend on those properties, and I say spend in quotes is the closing costs, the downpayment is not an expense, that is just moving the savings from the bank account to the equity account in the properties. So very important. It’s a capital account as it were in the financial, you know, parlance. Okay. So, God was looking for a word there, you know, and

Oliver 12:52
the other the other good thing too there, Jason, to remember is those closing costs are depreciable. Right?

Jason Hartman 12:58
Well, some of them and you Write a lot of them off, but that’s a complicated discussion. Okay. So talk to us about some of your clients and like what they’re doing. So that’s one.

Oliver 13:09
That’s one. I’ve got another couple of clients are a great couple, Michelle and Michael, they are now on their 14 property. I’ve been working with them for about a year and a half and they’re doing excellent, awesome. I’ve got a few other clients. His name is Frank, and he’s in Pennsylvania. He bought his first property with us about two months ago. He was so excited after the close of his first one, he waited about a month or two, he got us some cash flow. He’s so excited to move forward again. He bought two more, right away. I’ve got another few clients in the Colorado Springs area, and they I’ve got a few military clients and their captains, and they’re making some good income and a lot of savings. And they’re just moving forward with it. They see it, they understand it, and they just move forward with it. They’re the engineering types of the lot more the analytical type What I’ve noticed is there, they look at the numbers, they aren’t as tied to the emotional aspect to it. And they look at the numbers. They say this makes sense. Let’s do this all over. And we just, you know, we went ahead and move forward and I’ve got a few clients over there. they’ve purchased four properties. I’ve got a couple, they bought two properties in Tennessee. In addition to that, I’ve got one I’ve been working with one of our clients set then he did an intro for us a few months ago. From Yeah,

Jason Hartman 14:26
it was great to have him on the podcast and he also chauffeured us a very long distance trip. And that was very cool.

Oliver 14:33
Yeah, that was really nice a year we really intense

Jason Hartman 14:36
happens happens at doctors I recall. Yeah,

Oliver 14:37
that’s right. He is a doctor. He’s got a very, very busy schedule. So for him as soon as I start to explain all of this, he came to our meet the Masters event, and then he came to our Memphis event, and he’s also already signed up for our Oklahoma City Tour event. Oh, hey, we’ll see him in Oklahoma City again. Yeah, coming in. A couple weeks, few weeks, exactly, just two more weeks. So there’s still tickets available. And make sure to Find out a little plug that says

Jason Hartman 15:01
three weeks, actually. About three weeks. Yeah, right after Fourth of July. Yeah, we’ll look forward to seeing you there. And you can go listeners to Jason hartman.com. Click on events and get tickets for our Oklahoma City. Jay Chou live Jason Hartman University live event, good educational event where we dive into the deep numbers and we’re gonna have some panel discussions. Then of course, we’ll have a property tour of Oklahoma City as well and a bunch of great meals together and a lot of fun. Those are really fun events. So yeah, good, good stuff. Okay. So tell us more.

Oliver 15:32
So one more thing I want to stress. The second is that he is a doctor, he’s super busy all the time. And when he understood the concept, I mean, he’s only he’s already put six properties under contract and close on half of them already in the last four or five months now. And he understands that his time is incredibly valuable and he wants to make that harder and capital work for him. So he’s just dove right in and I’m you know, that’s just he’s done a fantastic job. Yeah, that’s great. Another few clients, I’ve got Craig and Sara over and Idaho, they’ve already they jumped in as well they put three properties under contract. And we just closed on two out of those three. So congratulations. And Brandon. He’s a, he’s a, he’s up in the northern county of San Diego area. And he came to our Phoenix event last year, he was the lucky winner of the contest came to the event. And then he just followed up right after the head, came to our meet the masters and to the Memphis tour and he’s already closed on his fourth property.

Jason Hartman 16:33
Fantastic. Yeah.

Oliver 16:34
All these clients are just doing fantastic, fantastic work here. And then congratulations. Yeah, that

Jason Hartman 16:39
is this becomes very addictive, you know, income property, the most historically proven asset class in the entire world. And it’s really amazing how, after just a few short years, you can really start to see a real difference in in how you grow your wealth. So yeah, that’s fantastic. Congratulations to all of those clients. And we of course, we have many more. That’s just a few of them all over. I don’t know if you want to mention anybody else. Just one more.

Oliver 17:04
There’s one individual. He came down. He was in the San Diego area. He called me up. He was very skeptical about all of this. He told his wife about us. And she was very skeptical as well. I said, Listen, you guys are gonna be in San Diego, let’s meet for coffee. I met with them. I don’t usually do that very much with clients just because everyone is across the, across the country in the world right across the world. Really. That’s true. And so I met with him his wife, and he had three kids with them as well. They’re doing a whole coastal tour, met with him, I showed him some properties. He decided to go ahead and dive right in and he purchased one property already with us. And he’s just sort of on the sidelines waiting for the cash flow to come in. And then he’s really excited to move forward with the second and third property here shortly. So sometimes, you know, getting that face to face is great because it allows the client to put that face name to a face and just really be okay with it and move forward with

Jason Hartman 17:57
this fantastic good stuff. Well, that’s Great, talk to us a little bit about like market conditions, and kind of what you’re sensing out there when you’re working with all of our different local market specialists, and in all of the different markets around the country, where we do business, you know, give us give us a feel for what, what challenges are going on with you, with our clients, with the inventory providers, the local market specialist, just kind of an overview of what’s happening out there.

Oliver 18:24
Overview is that, again, you’ve heard this repeated over again on the show, inventory is tight, it’s tight across the board. We’re working incredibly hard at getting more inventory opening up some new markets. That’s generally the the big thing is it’s almost a it’s a bit of a race to the website. I’ve got some of my clients they’re checking on the website maybe five or six times a day sometimes. And they’re just looking for our inventory seen what it is that we have available. I’ve got some clients I brought in for example, like the Florida market, they were really happy with their with the returns and at the moment We just don’t have much inventory there. And again, this is a common theme that I’m seeing is sometimes we’re in markets when it makes sense to buy in, and the property’s cash flow. Fantastic. But then, you know, if the prices appreciate to the extent where doesn’t make as much sense anymore, you know, we’ll take a bit of a break from that area. And then in terms of other problems, what I want to say is, listeners and clients do not get discouraged. Whenever you see an expense come up on your property, don’t get discouraged, know that you’ve allotted a certain amount to cover those expenses during that year. So if you see an expense for maybe two or $300, don’t worry about it. It’s, it’s okay, you’ve allotted a certain amount for this per year. Obviously, if it’s an expense that you think is questionable, feel free to touch base with your investment counselor, ask us about it, see if it’s a reasonable cost. If it’s not, you know, then we’ll definitely bring it up with the local market specialist. But overall, that’s generally What it is that what I’m seeing right now in terms of, you know, potential issues. It’s just the overall market condition being quite tight right now.

Jason Hartman 20:09
Yeah, it definitely is one of the things that I think people should know about overcoming adversity and the challenges sometimes is right out of the gate. Nowadays, a lot of people have this huge issue and discouragement, and that is that they can’t get a property, it’s just very hard to actually buy a property, you know, you’d think, hey, I’ve got money on the customer here, you know, sell me a property. I want that one. I want that one. I want that one. But you may not be lucky enough to actually get the property is it’s, it’s, it’s difficult. And it reminds me of when back when I was a traditional real estate agent. There There are people in the traditional real estate business that Do you know, different types of work and one one type is what’s called expired listings. So just give an example And I’ll tie this into buying a property, right? Because when a when someone has their house for sale and the listing expires, certainly this is very rare in this type of market where everything selling with multiple offers and so forth. But, you know, depending on the market cycle, you’ll have a lot of expired listings. And there are some real estate agents that just really go after this. And it’s like their specialty, you know, they go after expired listings. So they see them expire in the multiple listing service. And then they call up the owner and say, Hey, you know, your old agent sucks. Why don’t you list with me? Well, hopefully they don’t say that. That’s not too professional. But, but you know, they talk about why why don’t you list with me I can sell your property, blah, blah, blah, you know, this whole the whole sales pitch. But here’s the problem. Sometimes it is very difficult to actually find that owner and find their phone number and and get in touch with him so that you can try and get them to list with you right and here’s your The thing you always notice, occasionally the phone numbers just in the multiple listing service, because that’s the phone number that all of the real estate agents use to call that owner to say, hey, I want to, I want to show your home to a prospective buyer. That’s when it’s on the market. And sometimes, the listing agent just leaves the number in there. After the listing expires. And the owner, the seller is getting a million phone calls the next day, right. But sometimes, the agent is smart, they take the number out. And you know, it’s very hard the owners totally unlisted. The only way to find them is go over knock on the door, they may not be home, whatever, right? here’s the here’s the lesson. Okay? And this is how it ties into buying investment property, the harder it is to buy to find that owner, okay, the fewer people who are calling them, right, the fewer agents you’re competing with, if it’s that way for the real estate agent, right? So the same is true When you deal with anything as a real estate investor, you know, the higher the bar, the higher the barrier barrier to entry, the harder it is, you know, the harder it is to qualify for the loan to buy the property, you know, maybe you’ve got to pick multiple properties and you’re going to lose a few before you get one. And you’ve got to jump through a whole bunch of hoops to qualify for the loan. Well, all of those barriers, all of those difficulties that we perceive as difficulties as real estate investors actually preserve the opportunity for those who are more persistent. You know, there’s, there’s a couple old sayings here, right one is the meek shall inherit the earth. We’ve all heard that old biblical saying, right, but the other one is, things may come to those who wait, but only the things that are left over by those who hustle,

Oliver 23:53

Jason Hartman 23:55
Thank you. Things may come to those who wait and patience is certainly a virtue, but only Other things that are left over by the ones who hustle. So you know, this does take a bit of work, it’s much easier to go in and give $500,000 and just write a check to a guy at Charles Schwab or Merrill Lynch or Ameriprise or any of these financial services firms. But they’re their whole offer just it’s lousy. Okay? You just don’t hear of anybody who has created, who’s not an insider who’s created any significant wealth. taking the easy road of doing that, yes, you have money. And I get that, you know, when you have money, you feel like you should be in the position of power in the catbird seat in the driver’s seat. You’re the one with the money, who has the gold makes the rules As the old saying goes right? And, yeah, it’s not always so easy to deploy that money. And the harder it is to deploy it, the fewer people are willing to make the effort and go the extra mile. So my advice here in the lesson This little kind of tangent rant here is is that you combine money, you combine capital, with persistence, okay? And you put those two things together and boom, magic happens. Because one barrier to entry is you got to have the capital to invest, right. And so that excludes a lot of the world. A lot of the people that don’t have the capital, but the other barrier is you’re not just going to be lazy about it. Like the masses, the masses of people will just go give their capital to the financial advisor, and you’ll be put into those lousy Wall Street investments where the insiders get rich and everybody else gets like a mediocre return. Right? So the other barrier is persistence, tenacity, you know, being willing to jump through some hoops to get the properties and to qualify for the loans. And then to do With the occasional issues that come up afterwards, so you combine these two things, capital plus effort, and the effort isn’t really that big, it’s just bigger than these very mediocre investments on Wall Street. So, so that’s a distinction. I mean, all over. Have you had any clients who just kind of say to you, hey, look, this is, this is hard, you know, I’m just gonna give up. I mean, I got all this money to invest. It’s burning a hole in my pocket. But then, you know, they’re like, this just too difficult to try and buy properties. Jason, I’ve got a couple of examples for you in that realm. So first, number one, as you mentioned, persistence, I’ve got one client, his name is James who then he’s in the San Diego area as well. He’s, he’s recently closed. Well, as you can

Oliver 26:53
see, he’s helping his father in law, pick up some properties, and we’re gonna have a conference call this weekend. And I just want to just emphasize the whole idea that right now, if the property does not have an exact 1%, rent to value ratio, I mean, this one has like a point nine, five or something like that, but the house is gonna be undergoing a roughly 25 to $30,000 rehab. So I just want to emphasize that there’s, it’s, it’s more than just the price of the home and just more and more than the overall rent to value ratio. As important as that is, it’s more than just that. It’s going to be undergoing, you know, tons of work. So just want to emphasize that, and when you’re talking about going to the bank, giving the financial planner, your half million dollars in cash to invest. You’re definitely right, Jason, that’s one of the easiest things you can do. Whereas on the opposite side, if you were to start picking up properties, maybe you review your monthly statement, every you know, maybe takes you 20 minutes every month, based on the number of properties that you have. You know that that does require a bit of time at work. Your overall returns are going to be so much higher. I mean, I’ve got one client She recently or should not, it shouldn’t become a client, she decided to just go ahead and use the funds, which was almost $300,000 that she was going to get from the sale of her primary home and put them all into the stock market. And I probably spent 15 hours with her over the phone going over all the different scenarios. And yet, she still just did not want to do it. And that just blows my mind when people do that.

Jason Hartman 28:28
Well, I think I think one of the myths is that there is a such thing as a passive investment. And if you’re investing in the Wall Street assets that stocks, bonds and mutual funds, first of all, you’re probably doing it at a huge peak of the market. Now, I know, some might be saying, Well, isn’t that true in real estate, too? I don’t know. I think it’s true in the cyclical markets in the California markets, the South Florida markets, the expensive Northeastern markets. Yeah, I think there’s definitely a bubble. I’ve talked about that many, many times. And Who knows how long the bubble can keep going. But we’re definitely in bubble territory. There’s no question about it. At some point, it will pop, but not in the linear markets. I mean, these linear markets, you know, what you just said was very telling Oliver point nine five rent to value ratio. Really, that’s phenomenal. I mean, the fact the fact that you can get even close to point one means that we are still on solid ground, the fundamentals of good quality, linear market, conservative real estate, buy and hold real estate investments. Make sense? Hands down, you know, here, here’s how, you know, you’ll know if you’re, if those markets ever get into bubble territory, when those rent to value ratios get below point seven, meaning that that hundred thousand dollar house only rents for $700 or 650 per month. Yeah, as an example. And it probably means the house has 200,000. And it rents for 1300 per month is what I really should have said, because the house appreciates, but the rent doesn’t in that example, then we are getting to bubble territory, okay, but we’re not even close to that rent to value ratios are still very good. We have very sound funtom fundamentals in the markets we recommend. Now granted, the cyclical markets are way out of whack. Okay, I wouldn’t touch them with a 10 foot pole. Granted, and even though we don’t recommend these markets in this type of investing, but if you listen to some of my old podcasts, and you’re listening to all the flashback Friday episodes, where you just go back into my back catalogue and you got 844 episodes you can listen to, you’ll hear me talk about in 2010 how gosh, you know, it’s pretty tempting to be buying a property in Southern California. And those those prices have skyrocketed. Okay. So, you know, it’s, yeah, it’s, um, the fundamentals are still good. I mean, what’s like the worst rent to value ratio you’re seeing on any of the properties we have all over. I think

Oliver 31:11
the worst one is probably, it’s probably about a point seven, five. And that’s predominantly because it’s new construction. And it’s expensive.

Jason Hartman 31:22
Yeah. And it’s and new construction, you’re paying a premium for the new construction, expensive, new construction properties. And, you know, but they’re, you’re kind of buying something else. Because when you’re buying a new construction, even if you’re in a linear market, the new construction property is more likely to act like a hybrid. So it’s not just the market. It’s also the property type the property class. In a new construction property, you know, you’re getting a class a property that is likely to appreciate better than a Class C property, but Class C property will have better cash flow. So You know, what is the answer? Well, the answer is to have a mix in your portfolio. Okay? Not a mix of, you know, don’t be thinking you’re an investor in these crazy, outlandish, overvalued markets, but have a mix of properties in good linear and hybrid markets that are maybe some a class, you know, new construction type properties. And those aren’t going to have the good cash flow, but they’re going to have a better appreciation potential, and certainly lower maintenance costs. And then you blend those with B and C type properties that offer much better cash flow. And I think that’s a really good strategy. And then you diversify geographically into three, at least three, but not more than five of our linear and hybrid markets nationwide. And you’re going to be in good shape. You know, it’s part of the 10 commandments of successful investing.

Oliver 32:53
Those are excellent commandments. By the way, we should do another flashback Friday. I know you’ve already done a bunch of them on there, but they’re very, very good reminder. Yes,

Jason Hartman 33:01
yeah, yeah, they are that that’s the thing that really keeps you on track, you know, is the 10 commandments of successful investing. So good stuff. Well, hey, Oliver, we got to wrap it up. I know you’ve got to go, you got to pick up your wife at the airport. And I just want to say join us for our Oklahoma City event GHQ live Jason Hartman University live and a property tour in Oklahoma City. I think you’ll really enjoy that. That’s coming up right after Fourth of July the first weekend. And you can go to Jason Hartman, calm slash events for that one. And then also join us for the venture Alliance group. I know it’s short notice we’re just a few days away from that by the time you’ll hear this, but we are meeting in Chicago, we’ve got our biggest venture Alliance planned in terms of attendance so far, and that’s going to be a fantastic weekend event in Chicago. Those are our kind of our high end mastermind events. And by the way, Oliver, I just want to give a shout out to this great book. I just finished Everyone’s heard of Napoleon Hill, right? You know, he’s the very famous author who wrote, Think and Grow Rich right back in like the 30s. I think it was, well, his other book that I just finished it was released as a something he wrote, like 70 some odd years ago, but it just was released in 2011, sort of narrated by Sharon lechter. Okay, who’s been on the show several times, and she’s one of the co authors of the rich dad series. This is by Napoleon Hill. It’s called outwitting the devil. The secret of freedom is the secret to freedom and success. I just finished that on audio today. It’s excellent. I couldn’t believe how good it was. outwitting the devil by Napoleon Hill. It is a relatively new book by a guy who passed away a long time ago. And it’s just it’s phenomenal. I love the audio version because it has Sharon’s voice. It has another narrators voice. It’s just really well done outwitting the devil He talks over and over, he repeatedly mentions the power of a mastermind, you must be in a mastermind, you must choose by design, your friendships and your associations in life that is so critically important. Like Jim Rohn said, and I’ve said it before, we’re the average of the five people we spend the most of our time with our income will be the average of those people’s income. And it just happens and that’s why you need to be in a mastermind group. So check out venture Alliance mastermind calm on short notice if you can join us in Chicago. We got room for I don’t know, two, three more people we could still fit in probably check that out. Venture Alliance mastermind COMM And also on Jason hartman.com in the events section as well. Oliver, thanks for joining us. any

Oliver 35:48
last comments before you go? Definitely. If you’re out there, you’re sitting on the sidelines. And I spoken to you before maybe he’s spoken to another investment counselor, get a hold of us stop making Money sit there for you. Get rid of that lazy money and start making it work for you get a hold of us. We’d be happy to strategize on coming up with a plan on helping you do so. Otherwise happy investing for sure. all over the country and all over the world.

Jason Hartman 36:18
Excellent point, Oliver. Well, thank you. Yep, happy investing to all listening. Thank you so much for joining us today and we will talk to you on Wednesday just a couple days away.

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