Income Producing Property Investing

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martinis and your money

Income Producing Property Investing

On today’s episode, I am chatting with Jason Hartman, founder of Platinum Properties Investor Network about investing in income producing property. Jason shares a number of great ideas, and he really made me start to think more about adding it as an asset class to my own portfolio. As I learned on the show, I apparently have a very “old school” philosophy around managing the investment; and thanks to technology and many services available today, it’s easier now than it ever was.

What are we drinking?

Jason – Cosmo

Shannon – Dirty Gin Martini

Podcast Notes

  • At 18 years old, thanks to the prompting of his mom, Jason attended his first real estate seminar and he was hooked
  • By the time he was 19, Jason got his real estate license and started selling it part time while in college
  • Jason talks about the importance of leverage in investing and the ability to do more with less
  • Jason shares how you can determine the best location to invest in real estate
  • Jason discusses some of his property investing commandments
  • Thou Shalt Diversity
    • You should diversify geographically with your real estate
  • Thou Shalt be Area Ignostic
    • You should not concern yourself with what area you invest, it doesn’t have to be local to where you reside
  • Thou Shalt not gamble
    • The property should make sense the day you buy it otherwise you shouldn’t buy it
    • Buy for cash flow and not appreciation
  • Jason shares the importance of investing with the RV Ratio or Rent to Value Ratio – He says you should expect to get 1% of the value per month. For example, if you buy a $100,000 home, you should expect to get $1,000 a month in rental income from it.
  • Jason suggests that investing in single family homes are better than condos
  • Jason shares why and how you can invest in property outside of where you live
  • Shannon asks Jason if he thinks that people need to set up separate LLCs to invest in real estate or not
  • Jason suggests having a minimum of 4% of the portfolio value saved in an account for contingencies but no more than 8%
  • Jason says the best way to get started is to get educated on the subject but not pay that much for the education

Random 3 Questions Jason Answered:

  1. What is your favorite country you have visited? (Jason has traveled to 78 countries)
  2. If you had to pick one type of property to own, what would it be and why?
  3. If you could only have one book on a deserted island, what would it be and why? Jason suggested Sapiens – A Brief History of Humankind by Yuval Noah Harari and The Untethered Soul by Michael Singer

What do you think about investing in income producing property? Do you invest in real estate outside of your own home?

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Shannon is a financial planner who left a “traditional” financial services firm to start her own company, The Financial Gym, because she felt traditional financial services firms did not have the tools or resources to help people in their 20s and 30s who are starting out and trying to build assets while also managing debt. She realized that the key to long-term personal financial success is a commitment to financial fitness and making smart financial choices. Through her blog, Financially Blonde, her book, Train Your Way To Financial Fitness, her podcast, Martinis and Your Money and The Financial Gym, Shannon is committed to making financial fitness fun, easy and accessible for everyone.

2 COMMENTS

  1. Oh I’m looking forward to seeing his reasoning for this -> “Jason suggests that investing in single family homes are better than condos.” I’ve actually been leaning more towards buying a condo as an investment property, so he may save me some $. We have a studio apartment built into our basement and have rented it out for about 3 years now. It’s been a great side income but we’d really like to diversify into stand-alone rental properties next. Our first priority is to renovate our current home and buy our next home without selling our current one. Then we can rent out this one. We’ll see if that’s how things actually pan out, though.

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