The 3 Types of Real Estate Markets: Which One Fits You?

real estateSolo attorneys and solo-preneurs who venture out on their own, starting their own practice or business sometimes end up working more as their own employee and wind up becoming operators of the business, not a true business owner.  In my latest interview, I talked with Jason Hartman who is the founder and CEO of Platinum Properties Investor Network, the Hartman Media Company, and Jason Hartman Foundation. And basically Jason is a podcasting machine, about twenty podcasts with a little over 3,000 episodes.  Jason and I talked a little  about finances and how we can better prepare ourselves for the unforeseen future. Jason and I discussed several aspects of making…… well not passive income but very close to it by investing in real estate.  Jason’s message is that people should be a direct investor. They should control what they put their money into. Never relinquish control of your financial future to other people.

 

Diagnosis

What is a direct investor

Jason shared with us that becoming a direct investor begins with purchasing a little rental property. Jason and his team works with first time investors,  middle of the road investors that own maybe twenty, thirty properties, and they work with people who are multi-millionaires and own many more properties than that.

 

What are the 3 types of real estate?

What Jason teaches people is that there are three basic types of markets. One is a linear market, where prices just sort of chug along, it’s nothing exciting, nothing sexy. These kinds of markets are kind of boring, but they actually make a lot of sense for investing. Then there’s the cyclical market; that would be a lot of the more expensive areas in the northeast and in south Florida, or virtually the whole state of California. Very cyclical, ups and downs, exhilarating highs, and terrible ugly lows that bankrupt people. The third one is easy, it’s a hybrid market, it’s a blend of the two. Some examples would be Memphis, Tennessee; Atlanta, Georgia; Little Rock, Arkansas; Kansas City, Missouri; Indianapolis, Indiana; Columbus, Ohio; And the suburbs, believe it or not, of Chicago.

 

Remedy

Gaining Control

Wherever you may find yourself in the lineup, Jason recommends one of his Ten Commandments of Successful Investing  ‘Thou shalt maintain control.’ Get control of your money, and do not let someone else have control of it.  Basically what it tells investors to do, is not relinquish control to anybody else .  So the action step is if you have relinquished control, and many of us have done this at one time or another, then make that phone call or send that email, and get control of your money. That is Jason’s first action step for you, that’s the first step.

Jason provides this example:

Most people have heard of a guy named Larry Ellison; billionaire, Forbes 400 Richest People in America. And he’s the CEO and the founder of Oracle. And from 2000 to 2002, Larry’s personal take from the company was $781 million, almost $1 billion in two years almost,  but during that same exact time, according to Lou Dobbs’ book ‘War on the Middle Class.’  In that same two year period, shareholders lost 61{cf5d02f31badde63b68d55c0bed56ab5356094abc2057734bc0088249d8536d3}. At the same time Larry took out almost $1 billion from the company. There’s this huge conflict of interest; lawyers understand conflict of interest all too well. It’s important to be in control of what you do with your money, stop giving it to these other parties and expecting them to treat you properly, they just don’t care.

With the right tools and info, you can be on the road to creating a passive type of income in your business.

To learn more about  Jason, visit his website here http://www.jasonhartman.com/

This is a transcript of a recorded live presentation. It is in spoken-word format. While we have cleaned up the transcript a bit for easier reading, it is not in edited written-word format. – See more at: http://thelawpracticedoctor.com/jasonhartman/

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