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:
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