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
- 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:
- What is your favorite country you have visited? (Jason has traveled to 78 countries)
- If you had to pick one type of property to own, what would it be and why?
- 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