1767 FBF: Predicting Market Trends, Financing through Debt, Reserve Ratios & Leverage


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By Jason Hartman. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.

Today's Flash Back Friday is from episode 622, originally released last January 18, 2016.

This episode can be summed up by the popular saying “Everyone is a genius in a bull market”. Many financial hosts warn against taking on debt to build wealth. Jason clearly illustrates why we should be using fixed rate mortgage as a financing vehicle and outsourcing debt to tenants while enjoying the tax advantages.

Naresh is not a real estate investor, yet. He has come up with some basic, but necessary questions for Jason which will help him and all of you budding, soon to be real estate income property investors out there. Jason reminds us “real estate is the most historically proven asset class” and carefully lays out his answers in easy to understand, common sense terms.

Key Takeaways:

Jason’s editorial:

[3:05] Predicting market cycles would be easier if governments and central banks didn’t interfere

[9:15] The business cycle is an economic concept which affects real estate

[10:54] The Reluctant Investor’s Lament poem by Donald Weill

[18:26] Everybody’s a genius in a bull market

[20:35] Our Investment Counselors are geographically independent, market-wide gatekeepers

[24:00] Our organization has relationships with local market specialists which give clients leverage

[27:35] New clients need at least 24% cash down when purchasing a property

[30:07] The rise of the “debt bigots”

[33:38] Debt is a powerful thing, you must be wise with it

[35:15] Always use debt as leverage when purchasing real estate income properties

[38:49] A fixed rate mortgage guarantees your rate for 30 years plus tenants pay off your debt

[39:13] Podcast feeds are divided and education is free



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