Real Estate Stats From National Association Of Realtors 2019

Jason Hartman and investment counselor Adam have a discussion on the recent economic statistics from the National Association of Realtors. They relate it to investors and then go into mortgage rates and listener questions. More specifically the tackle a listener’s concern about real estate investing during a deflationary period.

Investor 0:00
You don’t have any investment real estate investments, you will not have the opportunity to learn to make mistakes and learn from it. And then you will not be able to tell which one is a better investment. I think you just have to get it started somewhere and with the help of your investment counselor, and then move forward.

Announcer 0:19
Welcome to the creating wealth show with Jason Hartman. You’re about to learn a new slant on investing some exciting techniques and fresh new approaches to the world’s most historically proven asset class that will enable you to create more wealth and freedom than you ever thought possible. Jason is a genuine self made multi millionaire who’s actually been there and done it. He’s a successful investor, lender, developer and entrepreneur who’s owned properties in 11 states had hundreds of tenants and been involved in thousands of real estate transactions. This program will help you follow in Jason’s footsteps on the road to your financial independence day. You really can do it. And now here’s your host, Jason Hartman with the complete solution for real estate investors.

Jason Hartman 1:09
Welcome to Episode 1222 1200 and 22. Thank you for joining us today, we want to talk to you about some statistics from the National Association of Realtors, otherwise known as NAR. So we got to go over some of those. We’ve got to go over a in depth listener question. We were late in getting you your mortgage update. And hey, it’s the first time we’re ever laid on this folks. So cut us some slack. So we’re going to give you your mortgage update today, and I’m here with Adam to go over some of these things. Adam, welcome back. Thanks. Good to be back. By the time you hear this, dear listeners, I will be in Europe. But we’ve got some statistics from the National Association of Realtors. They are quite good at stats, although we do need to understand their motivation, their goal, Michael Fannie Mae, Freddie Mac, and just a giant industry, they are promoting housing. So let’s understand that. But hey, the stats are the stats, and I don’t think they’re making those up cash buyers. Now, this is interesting. Cash purchases of properties are down a little bit, right?

Adam 2:18
Yeah. So the all of these stats are from April, because that’s the most recent stats that they have available. And you say that they’re promoting buying but a lot of these stats aren’t making people want to buy it says cash sales are down. They were 21%. Now they’re down to 20%, which doesn’t sound like a huge thing until you think that’s actually a 4% drop.

Jason Hartman 2:38
I’m glad you look at it the right way, Adam, that is that is definitely true. And one thing I want to say to you is that almost all real estate statistics have a pretty big lag time in them. Because as we’ve told you over the years, you got to wait for the thing to happen. Then you’ve got to wait for a The data to be cold in with real estate is really quite slow. Because some of the data is MLS data, it depends on the stats, right? Which statistic you’re talking about some as MLS data, but some is data from the county recorders office in a given municipality, right. And so that happens, and you know, there’s like a month lag there. Well, actually, let me go back a little bit. The deal has to happen, someone has to sign the deal, like, I’m gonna buy the house, I’m going to sell the house meeting of the minds between buyer and seller. And then they have to close the transaction that might take 3045 6090 days, who knows, right? It might even take longer than that. And then the transactions recorded, and then they get the data from the county recorders office. So it’s quite a lag time and this is one of the things about real estate statistics. In most cases, you are looking in the rearview mirror by a few months.

Adam 3:59
Go ahead One of the good news is foreclosures and short sales are down 4% year over year, which is the lowest they’ve actually seen since they began tracking in May 2011. Now for us, that is both good and bad, because you have to remember a lot of the local market specialists are buying these foreclosures and short sales to fix up for us to purchase.

Jason Hartman 4:18
Yeah, that means tighter inventory if they can’t get more foreclosures and short sales to buy from those distressed sellers and then do rehabs on them and sell them to our turnkey investors. Right.

Adam 4:30
Yeah. And there’s the big thing to me was the April sales, the April sales were 5.2 million, which was down point 4% from March, but they were actually expecting an increase of, I believe, around 2%. So this was actually a huge drop off from the expected sales. And it was also down 4% year over year. And that is one of the things that when people are talking about the housing market and consumer confidence, it’s gonna drop it and that might actually have its effect. packed in regards to the Fed, and what they’re deciding to do later in the year.

Jason Hartman 5:03
Okay. And I just want to say, That’s not the number of transactions per month. That’s the annualized number. 5.2 million. Okay, so median sales price is up 3.6%, year over year to $267,300. Right?

Adam 5:20
Yep. That’s up 3.6%. And but listings are also up almost 8% year over year. So more people are trying to sell their house

Jason Hartman 5:28
right and fewer people are buying those houses. So here’s the thing, we’ve got to look, you’ve really got to consider what those statistics mean. And here’s what they mean, in my humble opinion. So help me Oh, so humble, very humble, super humble, who’s incredibly humble opinion. I’m bragging about how humble My opinion is. So we see that and what’s really happening out there is the higher price cyclical markets are declining. If Not almost crashing in some cases. And that’s bad news for them. And the inventory is increasing pretty dramatically in those markets. So $750,000 and above, in housing price, you’re seeing a significant softness in those markets. This does not apply to $100,000 and $200,000 houses, those are still flying off the shelves. And inventory is pretty scarce. So again, it’s the tale of two markets, right? The cyclical markets versus the linear markets, the low priced bread and butter sensible markets versus the high priced speculative markets where everybody’s a gambler and the gamblers have kind of left the table they’ve you know, as Kenny Rogers says, You got to know when to hold them and know when to fold them know when to walk away and no one to run. largely the buyers have at least walked away from those markets. Yeah, good. It says slow jog. Maybe they’re not running but they’re jogging away. So they are rejecting the seller’s greed in those high end cyclical markets 24 days on market, is that an average or a median number? I wonder I don’t think we know that we had

Adam 7:16
though they just said 24 days on market. Now, they did say that April signed contracts. I mean, this, these are obviously not all going to close. But the signed contracts in April were down one and a half percent from last month and 2% from last April. So there is fewer people saying they’re going to buy in this April as opposed to last April,

Jason Hartman 7:35
right. And they have two real ways of looking at that. One way is to look at the multiple listing service, the MLS. And when the status of a property goes from for sale, to under contract or in escrow, call it what you like, depending on what market you’re in, that is the signed deal and that’ll play into what they call the tending index, right? The pending index, that gives you a quicker indication of what’s going on the market, you don’t have to look in the back in the rearview mirror very far for that one. But some of those deals won’t close, they’ll fall through. So it’s not as solid as the actual sales index. And that’s something to note, the 24 days on the market is not bad at all. I mean, that’s pretty much a booming market if you ask me.

Adam 8:26
Now, one of the things that intrigued me because of things that I’ve heard from various news sources lately was their chief economist came out and said that job creation is improving, causing wage growth to align with home price growth, which helps affordability and will help spur more sales. But the interesting thing to me is I just read an article the other day, I believe you posted it in the Facebook content group, saying there’s actually the car industry is laying off 38,000 people in the near future. And then there’s also a company called challenger gray and Christmas who is a global outplacement and career. Transitioning firm. And they’ve come out and said that the number of layoffs announcements from April to May, Rose 46%. And the current trend is slowing payroll growth.

Jason Hartman 9:11
Yeah, that’s it, see, see how these things conflict? You know, they really, they really do. And it’s hard to make sense of this stuff sometimes. You know, one of the reasons the economics is called the dismal science maybe. But Adam, I just wanted to rewind for a second. And when I was talking about the pending index, there is another important metric that the powers that be used to determine what’s going on without looking too far back in the rearview mirror. And in addition to the status change in the multiple listing service I just described, they also look at mortgage applications, how many people are applying to get a mortgage, and I don’t know that they’re that great it dividing the purchase mortgage applications versus the refinance applications. And another thing that may or may not, and I don’t really know the answer, be faulty about that index. It’s still a good indicator, I’m just poking a few holes in it, because I want you to understand is that people will many times apply for a mortgage to go shopping for a home, it doesn’t mean they bought a home, okay? It just means they got pre qualified. The mortgage officer ran their credit, and they filled out a mortgage application. But it doesn’t mean they’re actually getting a mortgage for sure. But most of them probably will, they’ll find a home, they’ll get a mortgage and do the deal, but

Adam 10:36
not all of them. And one of the things looking at the home prices and the sales prices, is we’ve talked about how the listings were up and the median sales price is up, but the number of first time buyers was flat, so you’re actually seeing more listings for the same number of people. So when you look at the fact the median sales price is up, that to me says it’s probably not going to stay that way,

Jason Hartman 11:00
I would agree, I think, Well, you know, again, you gotta you gotta segment the market. Yeah, you just have to do it market by market. But okay, anything else on this? And let’s move to a listener question if you’re ready.

Adam 11:15
Now if you want to throw in the mortgage update, I mean, you just mentioned a number of pending sales and kind of mortgage applications. That is one of the things we just talked about with one of our mortgage providers.

Jason Hartman 11:25
Excellent. Let’s go to our mortgage update, and then we’ll be back with an in depth listener question. Here we go.

Adam 11:35
So welcome to the June edition of the mortgage minutes. We’re joined today by one of the lenders from Jason Hartman’s network. How are you today? Good, how are you doing? We’re doing well. So what are investors looking at in terms of rates and how have they changed over the past month? I know they’re two different kind of loan sizes that are going to get your different rates. So can you go over kind of people with good credit, probably putting down about 25% and what they’re going to be Looking at rate wise for those two different levels of loans.

Adam 12:02
So let’s look at maybe, say, an $80,000, loan 70,000 to $80,000 price range with a cycle score about 740. Plus, with 25%. down, you’re gonna be looking at about five and a quarter 20%. Down, you’d be looking at about 5.75% today, okay? And what about when we get into the bigger ones. So if you go into a little bit of a higher price point, let’s say like $100,000, with a 25%, down payment, you’re looking at about 4.875. And then if you want to put down 20%, you’re looking at about five and a half percent. So you’ll see about a quarter of a point in difference between the two scale phones. You know, that price point now we’ve been hearing about how personal residence rates have been dropping pretty significantly recently. Have you been seeing the same thing in the investment grade, we have been going the media does play a big role in kind of emphasizing that so as many investors know you’re going to see a different rate a more favorable reflect, plan apart. or stopping home, purchase or refinance. The good news is that we’ve seen you know, in the last few weeks, we’ve had kind of some market updates from the different economists that kind of specify what predictions might be ahead. So there’s not going to be another rate hike, I should say, there’s going to be a rate cut the anticipate, most likely by September and possibly even a second one by December.

Adam 13:24
No, as we look at that, how has as the rates have gone down? Have you seen more applications for loans? Or has it kind of remained constant?

Adam 13:33
We certainly have. So even with the different market specialists, you know, have, you know, much more inventory available. So, in spring, we’ve seen, you know, much more of a push with purchase application. We’ve even seen investors questioning whether they should move forward with a cash out refinance on some of their properties that they have either a mortgage on or that they own free and clear. So volume has certainly increased. As you mentioned, there’s been talk of potentially a rate cut what kind of Are you seeing that are playing a big role in the people’s confidence that are then impacting the bond rates as they go up and down? Like, what are the things that are currently going on, and things that are potentially coming up that might impact that. So one of the biggest thing that has impacted the US and China, you know, trade talks, and more so recently with Mexico as well. So we see that that’s a big dynamic for pushing, you know, possibly are ready to go down. You know, with that being said, you know, most investors will follow different market updates, and, you know, question that whether or not that might have an impact in our rate, and it certainly does. So we always say to follow that 10 year Treasury note, and you’ll be able to see the difference in even just the last 30 days, how that has decreased from where it was that you know, in May, and now we’ve seen the yield curve invert several times recently has that been causing any distress in your market, none in ours, really. Know that you know, outside of that it might kind of sense that they might be ready for a recession, we tend not to really kind of look at that we’re more looking at, you know, global things that might be happening to kind of push Rachel further down. So like I said before, you know, the US and China trade talks, has been a big impact. If they do cut, do you think you’ll just be maybe a quarter percent or kind of what impact do you think I might have on? That would be only about a quarter of a point with the feds cutting the rate for the first time that they would probably do that in September? All right, is there anything else investors should know is they look at whether or not they should be buying or if they should be holding off for a better rate? You know, what we always say that, you know, might as well do it now and get pre approved. And once you do go under contract with us, if you’d be any improvements with the market, we can certainly renegotiate the rate for the investor. But, you know, with the spring market upon us, you know, I wouldn’t I wouldn’t hesitate to hold off.

Adam 15:52
Well, thank you very much for your time. I appreciate it.

Adam 15:54
Thanks, Adam. I appreciate it, too.

Jason Hartman 16:01
Alright, coming back here and the next mortgage update will be pretty close to that one, because we got to get back on track with our timing here. Let’s talk about a listener question. And this is, this is kind of in depth here. Adam, do you want to share that with us?

Adam 16:18
Yes. Robert went to Jason hartman.com. Slash ask, which everybody should do because everybody has questions. He said, he’s a longtime listener of your podcast and a big fan. He listens to about 20 podcasts regularly. And you are number one. And one question he’d like to hear discussed is the risk of deflation. He said, You’ve talked about inflation induced debt destruction for years as a big reason to own single family rentals. And he agrees, but just to play devil’s advocate from 1929 to the early 50s, rents and a lot of America actually fell and took 25 years to get back to where they were at the peak. That would be bad for owning rentals in as an aside, the answer is maybe and he said would be great if this topic could be discussed on the podcast. I know the theory is that central banks will just print money to stop deflation and thus cause inflation. But what if this stops working? What if they can’t stop deflationary forces? Japan has seen the deflation and real estate prices and rents for 30 years, and possibly a lot of Europe recently to also been periods recently where rents can be very flat in certain cities for 10 to 15 years. Phoenix comes to mind from say the late 1990s to 2012

Jason Hartman 17:28
Hmm, yeah. Okay. Well, first off, Robert, I have to compliment you, you have done your homework. So that’s good, folks. This is what I love about our listeners. You know, we have listeners who are sophisticated, they have deep understanding of this stuff. And our clients and listeners are just wonderful. I love all of you people. You’re, you’re the greatest. So thanks for the very thoughtful question. And hey, if you think my podcast is number one, or if I know it’s number one with you, please go write a review on a few of the pages. Gas platforms and tell the world what you think we’d appreciate that. But Robert to answer your question, first off, you got to look at before we even get into it too deeply. You got to look at the timeframe you picked. I mean, 1929 to 1950. Think about what happened. We had the great depression that began in 1929. We had 1933, where people had to turn in their gold, the gold confiscation, the Great Depression lasted pretty much all through the 30s until the greatest public works project of all time, arguably ended the Great Depression. What was the largest public works project of all time? It was known as World War Two. Okay. And, you know, World War Two, I mean, you can’t even talk about the economy. During a World War. It’s just too big half of the country’s men, women Maybe more. I don’t know, you know, at least of age, we’re off on aircraft carriers and in foreign lands fighting a war they were supporting the military machine here. We had Rosie the Riveter. You know, my grandma would tell me stories about how things were during the war and how they would conserve everything. In fact, I watched an interesting documentary a few months back about the guy who invented the TV, but never got credit for it. It was such a sad story, and RCA basically stole it from him. And it was just because of the way events played out talk about bad luck. when World War Two happened. Basically, the development of the TV kind of stopped, and all of the factories were dedicated to the war effort. I remember my ex girlfriend telling me about what her grandmother told her about World War Two and how they didn’t have any nylon. So All the ladies would paint a scene up the back of their legs to look sexy. Like the seam in the nylon stockings, you know, so this is a crazy time period. It’s just not a good statistical sample, first of all, okay. I mean, the worst economy and arguably, I don’t know, I don’t know how long but I don’t know if anything in the 1800s was that bad? I’m not sure. Maybe it was. I just haven’t studied that far back. But the Great Depression and World War Two, the largest war in human history is it’s just hard to talk about that. Analyze real estate during that time, but we’re going to do it anyway. Have faith. Robert, we’re still going to tackle your question, but I just have to give that a huge disclaimer,

Adam 20:46
Adam? Well, one of the things that popped into my head right away, was you have to remember, Thou shalt not gamble. So if your property makes sense the day you buy it, rents going down and 1927 right. So if you’re purchasing a property in right into the Great Depression, the

Jason Hartman 21:06
20s, the roaring 20s. You know, you got the girls wearing the flapper dresses and you know, that was an economic boom time the roaring 20s. Yeah, yeah. So if you buy Oh, don’t forget prohibition. I didn’t even mention prohibition, but go ahead.

Adam 21:19
So if you buy it, and it makes sense that day, as it goes down, and I actually went to the census website and look this up, Robert, in some parts of the country, rent went down in the 1940s was the only decade since the census has been keeping track. The 1940 says the only decade that saw drop, and not even every state, saw a drop in Alabama. The rent assessment went up in Arkansas, the rents went up in California, the rents went down. And now these are all inflation adjusted numbers. In California, it only went down $30. So it wasn’t a huge drop, adjusted for inflation across the United States. went down $27 from 1940 to 1950. And since then,

Jason Hartman 22:05
will but wait a sec, Adam. Just to be fair, though, you’re you’re talking about that in dollars, but compared to what right? I mean, how much was the rent the average rent back then it had to be super cheap. So that might have been a significant person. This

Adam 22:19
is adjusted to 2000

Jason Hartman 22:21
Oh, okay. Okay. So it’s, it’s it’s constant dollars that yes,

Adam 22:23
they’re just a 2009. And so it went down $27. But then from the 1950 to 1960, it went up almost $100. So it’s gone up pretty steadily. And so I looked across this and the numbers are pretty good. I mean, you don’t see any drops there. And then I said, Well, you know, let’s see how it’s been in apartments just out of curiosity. So I went and found a chart that has from 1960 to 2010.

Jason Hartman 22:52
Is it isn’t Hey, listeners, isn’t an Adam a great investment counselor. Look at all this research he’s doing you know, this is awesome. Good job, Adam.

Adam 23:00
Thanks and I showed this to you and this was the depressing one. So since 1960 rents

Jason Hartman 23:06
have gone up if you could see this chart wow this is shocking

Adam 23:12
put this in put them all link this to the in the show notes. Definitely the number of cost burden renters from 1962 2014 doubled. It doubled because your rent went up. I believe it was 70 right around 65% or so. And your wage went up right about 20% Yeah, four years

Jason Hartman 23:36
when you see this chart go to Jason Hartman calm click on this episode number see get the link to the show notes because this chart, in fact that maybe you can just paste the actual chart but you know, you need the link to with the article into the show notes because this is honestly I’m going to say this is sad. Oh yeah. You really see how the standard of living has declined. In terms of the hard assets, you know, being the home in which you live, right? If you’re a renter in 19 $60, the dollars are constant. Okay? And this chart, it’s amazing, the way they’ve just departed the two lines from each other income, much lower than rental rates. And so that just means people have to accept less and less and less in the standard of living living well, and the standard of living, maybe both gets worse and worse, and it deteriorates. Now. Technology improved, certainly during those times, especially from 1990 on, but wow, you know, you hear these faulty stats. I mean, I’ve talked about it before, but they say, Well, people are living so much better. Now. You know, the average baby boomer home that was built after world war two was 900 square feet or 1000 square feet and two De it’s, you know, 2200 square feet or something like that faulty statistic that is bogus. And the reason is, of course, because now people are packed in like crowded rats. Okay, back then they had a half acre lot in a better location. So it’s not the same. You can’t use those kind of metrics to try and determine standard of living. They’re just not accurate.

Adam 25:25
Yeah, and one of the things that killed me about this apartment pricing one article is it says the rent is still too damn high. That to me is the wrong way to look at it. It’s the wages are still today. Oh, yeah, that’s good. That’s good.

Jason Hartman 25:41
Yeah. Yeah. Yeah, absolutely. Very good. Very good. Okay. So check the show notes. Go to Jason Hartman calm and click on this episode number and you’ll get all this because this is something you actually do need to see listeners. And you know what, Adam, we should take that chart and let’s put it in the property. Cast feed. We haven’t mentioned the property cast in a while, but we have a podcast that will podcast you in a very convenient RSS feed format PDF files, I thought of this myself and I was met with opposition galore everybody saying it could not be done I’m sure my competitors will copy me because, hey, they don’t have any original ideas. Sorry competitors, you just don’t have any original ideas. So copy cat and you will get the actual performance of the property in a feed you can look at them on your mobile device, your phone, computer, whatever, very, very convenient and over the years, I really hope this becomes a nice historical record for us and for our clients so that they can look back and sometimes they are going to have regrets and they’re going to say shoulda coulda woulda I wish I would have purchased this house and that house I wish we’d been doing this for longer. And you know once in a while on my Facebook memories, which is the best feature of evil Facebook. I see these properties I posted years ago come up on my memories. And I you know, here is this 2800 square foot house in Atlanta, Georgia. And it was so cheap and the numbers were so good and you know, we sold that property to one of our clients of course, but Gosh, there were so many deals like that back in the day. It’s shoulda coulda woulda that’s what you always have in real estate, The Reluctant investors lament, like the poem I read sometimes so

Adam 27:35
so I’ve just been sitting here looking at the census chart that I was talking about, with the rents decade by decade from 1940 to 1950. Just because I wanted to segment out the states that we’re currently selling properties in just looking at linear versus cyclical markets, looking at where we’re selling properties right now. There’s some I believe in Alabama, maybe not too many that went up from 1940 to 1951. And most other stuff Going down Tennessee where there’s a whole lot of properties that went up as well. You look at Pennsylvania, that went down, but Mississippi, had a huge jump. Mississippi went from 117 to $149, whenever the rest of the country was dropping off, and then I looked at Ohio, Ohio dropped off about $40. So more than half of our states were increasing in value whenever nationwide, it was decreasing. So that’s a good sign for linear markets. I mean, even if you have the terrible, terrible economic conditions that happened, it still was better than the rest of the country, if you look at it that way compared to what better than the rest of the country.

Jason Hartman 28:43
Right, right. Yeah. Very good point. Okay, so we got to circle back to the real question here. And we certainly covered some of it. But deflation is the question. deflation is certainly possible. We saw some aspects of it during the Great Recession. We certainly saw during the Great Depression that you brought up in your question. And by the way, many of you listening won’t know what I’m about what I’m saying what I’m about to say this, but do you recognize the phrase? Good night, john boy? Well, that’s from The Waltons. Okay, a TV show. Yes, it’s an old TV show. And it’s set in the Great Depression. You know, it’s interesting to watch, like, I was saying, watch old movies, watch old TV shows, and just go and find an episode of The Waltons on YouTube or whatever and, and watch it and just helps you gain an understanding. And of course, we had amedy slays on the show before and, and she wrote the famous book called The Forgotten man, and that Chronicles a lot of stuff that happened during the Great Depression. So definitely some some interesting works on that. But yeah, deflation can happen, no question about it. It is not very likely because we want to align our interests with the powers that be always in the powers that be do not want deflation. It’s a very bad deal for them, both in terms of political popularity, but also in terms of paying off through inflation induced death, destruction, their own debt. But look, say it happens, right, Adam, say we have this massive bout of deflation. I mean, we certainly saw some of that during the Great Recession just 1010 ish years ago, give or take, what did people do? What is the option they have? If they bought a bunch of property and say that property deflated in value? Number one, the question is, did the value of the property deflate or just the rental income or both, they’re not always together. Many times they’re the complete opposite. When the value deflates. As long as the population hasn’t declined, then the rents actually stabilize or they even go up because you have people getting for closed on kicked out of their house. And you don’t have anybody moving into the buying market with any great degree of volume. So they’ve got to live somewhere. And that puts upward pressure on rents. So that’s great for investors when that happens, because, hey, we don’t need to sell, we just get the yield, we milk, the rental income, it’s wonderful. But if it does go badly, just do what millions of people did during the Great Recession, and certainly during the Great Depression, just give the property back. I mean, that’s the choice. The contract says, pay the mortgage, or give us the collateral, here, you can have the collateral, and that’s not without some implications in terms of your credit report. But during those times, financing just contracts anyway. So really think about it, do you really need your credit that much during those economic times? Because even if you had an 800 FICO score, what loans are available that’s the IRS. of those situation, you know,

Adam 32:01
and I would have to say, if you think about if another Great Depression hit tomorrow, if you wake up, and the Great Depression to his hit, what’s the first thing that’s going to happen is our stock market is going to get cut in half. I mean, that’s, you know what happened. Basically, you wake up in the morning and, you know, stock market’s gone, your rent is most likely not going to be cut in half day one, you’re still going to have your contract, your tenant is still likely to have their job for a while.

Jason Hartman 32:32
And for a while,

Adam 32:33
yeah, for a while, at least.

Jason Hartman 32:36
For a while you’ll be on welfare.

Adam 32:38
Yes. And eventually, like you were just saying, if your property value gets cut in half, don’t sell Yeah, right. If you can still afford it, don’t sell, you’ll still get the cash flow. So I mean, it’s going to take a lot longer in my view, for the stock market to get cut in half and make its way back up and for you to come back to zero. Then it will be for your rental property to lose half in value and you to lose so much money that you’ve lost as much as you did in the stock

Jason Hartman 33:03
market. And Adam, maybe the biggest question we should all be asking here and we can wrap it up with this is compared to what? Compared to what? Because what else are you going to do? So say for example, like you said, say you instead of buying income property, you bought stocks. Well, how are they going to do during that time? It’s going to be terrible. Say you bought precious metals? Well, some would argue that those are a hedge against inflation, but they’re certainly not a hedge against deflation. Some would try to argue that, Oh, well, they work either way. Well, they don’t. They’re not multi dimensional. They don’t produce income. They have terrible tax treatment. And as we saw during the Great Depression, they were confiscated. Well, the gold was okay for $20 an ounce I think and then, instantly once the government got all the gold They raised the price to $33 arbitrarily. So, you know, whatever.

Adam 34:05
And you have to find a company that’s willing to purchase the gold from you at a price that you want.

Jason Hartman 34:10
Right? Absolutely. Yeah, to find a market for it. So compared to what is the question, I mean, oh, I can hear a few people out there saying, well, I got cryptocurrency may and I got my Bitcoin. Oh, gosh, let’s not talk about that. We’ve, we’ve discussed that ad nauseum. And by the way, if you’re into that, you can listen to my other podcast called the crypto cast, which sometimes Adam I think we should change the name of that to the anti crypto cast, but I don’t know depends which way the wind blowing I’m not really anti again, I’d love to be wrong about it. I just think the powers that be are too darn powerful. And, and they’re not gonna let that win. So anything else on this or shall we wrap it up for tonight? I think it’s about time to wrap it up. But

Adam 34:54
Robert, thank you very, very much for your question that made me do some research that was fun to do. And like I mentioned before everybody who has any form of question, there’s no question to dumb because it’s not such a thing as a dumb question. As we learn growing up, there might be some questions that are too highfalutin for us to understand. But then we can just find an expert for Jason to interview for the show,

Jason Hartman 35:14
or we can just fake it. You know, we can fake it till we make it.

Adam 35:18
But go to Jason hartman.com slash ask and please ask us your questions. Good stuff. Yeah. And,

Jason Hartman 35:23
Robert, thank you for the question. That was a great question really spurred some good discussion. So we appreciate the questions Jason hartman.com, slash ask and go to Jason hartman.com. Check out the properties, our upcoming events all that good stuff. And Adam, thanks for joining me Until the next episode. Happy investing. Thank you so much for listening. Please be sure to subscribe so that you don’t miss any episodes. Be sure to check out the show’s specific website and our general website Hartman Mediacom for appropriate disclaimers and Terms of Service. Remember that guest opinions are their own. And if you require specific legal or tax advice, or advice and any other specialized area, please consult an appropriate professional. And we also very much appreciate you reviewing the show. Please go to iTunes or Stitcher Radio or whatever platform you’re

Jason Hartman  36:17
using

Jason Hartman 36:18
and write a review for the show we would very much appreciate that. And be sure to make it official and subscribe so you do not miss any episodes. We look forward to seeing you on the

Jason Hartman  36:27
next episode.

Share and Enjoy:
  • Print
  • Digg
  • StumbleUpon
  • del.icio.us
  • Facebook
  • Yahoo! Buzz
  • Twitter
  • Google Bookmarks