Jason Hartman hosts a two-part show where we start with some reflections on the recent “Meet The Masters of Income Property Investing” event at The Hyatt Regency in Irvine, California. Investment Counselors, Ari and Sara join Jason as they discuss the following:
1) Establish 5 year plan for where you would like to be in 2016
2) 26-27% real unemployment rate
3) Decline of standard of living for America (ask tenants)
4) Which entry point are you?
a. Beginning Investor – Optimize rapid growth that can be re-invested for long term compounding
b. Growing Investor – Optimize for stable long term (inflation protected)
c. The short path to retirement – Optimize for low risk and high stability
5) Prime age for spending is 46 years old
6) Gen X is 40 million
7) Gen Y is 80 million people (early 20’s now)
8) New investors should seek returns in the 20-25% range
9) The big problem now is that people are running out of money before they die
10) Social Security will not work (look at Greece). People are living longer too now.
11) Young Investor
a. Huge impact on higher returns early in your investing career (bell curve)
b. New Investors also have the opportunity to cherry pick high return small deals to start their career
12) Investing $1,000 annually (9k) from age 21-30 and letting it compound, or $1,000 per year after 30 years old (35k). Early investor will win.
13) Invest while young and seek safer investments when older.
14) The growing investor
a. Stability matters
b. Inflation creates volatility by disconnecting the nominal (name only) value or real value of assets
c. Income properties are best positioned to create inflation protected, stable growth
15) Investors need to leverage and make debt work for them (redistribute wealth)
Introduction: Welcome to the Solomon Success Show where we explore the timeless wisdom of King Solomon and the Bible as it relates to business and investing, false profits, and get-rich quick schemes are everywhere. Let’s not be distracted by these instead let’s go to the Source, the eternal principles that create a life of peace, power and prosperity, here is our host Jason Hartman.
Jason Hartman: Welcome to the Solomon Success Show. This is your host Jason Hartman where we talk about Biblical principles applied to business and investing learning from King Solomon of course and we will back with a fantastic guest for you in just a moment here, but be sure to visit our website solomonsuccess.org or solomonsuccess.com. Take advantage of our extensive blog library and our free content. I think you will find some fantastic things there so be sure to visit us on the web at solomonsuccess.com. Hey it’s my pleasure to welcome Zach back to the show. He is going to talk about vacancy or how not to have dread vacancies and we are going to talk about that in one of our markets, one of our markets that I’m invested in with 10 units of my own and then we are also going to talk about special pricing, and how that is really true how you can actually buy below what other people are paying right in the same timeframe and you’ll be kind of amazed at how this is possible so let’s talk about that. Zach let’s dive into vacancy here. We both got both got some vacancy reports in front of us for this particular market that we’re going to talk about today. And they are nothing short of amazing if you’re an investor if you’re a landlord right?
Zach: Absolutely. That’s correct.
Jason Hartman: Well, so what are they? I’m seeing vacancy rates below 3% in almost three year period. Wow that’s amazing. I mean our performance go with 8% vacancy but you’re beaten out like crazy aren’t you?
Zach: We are and we have consistently done that since — you are looking at the reports January of 2009 and that we have done that across the board on our duplexes on our two and three bedroom duplex units and on our one-bedroom apartment type units.
Jason Hartman: Okay so we’ve had a lot of clients by duplexes in your market and a couple by small apartment buildings in your market. Tell us about the duplexes I guess?
Zach: The duplex is typical. We added two bedroom two bath one car garage type units or three bedroom two bath one car garage type units. Overall, they rent obviously very well and they stay rented you can see the vacancy reports where you can see the average moving and move out times. I mean you’re looking at typically 12 days or less, and typically two weeks. It’s very tight on times. A lot of that has to do with a very strong rental market and very strong demand and strong demand with a couple with the supply shortage along with _____[0:03:02] one management company that really understands and understand the P&L out of property and understands how to decrease vacancy by being highly proactive whenever they know you are going to go open.
Jason Hartman: Yeah so I got a few different reports here that I’m looking at. There are three different reports, but let me share one summary of one of the reports with our listeners here okay. And this is history; this is not a projection into the future. This is — this actually occurred, this is real life so we’re talking about a total of 20 different units here where in this period of almost three years 980 days is the exact time period, there were 39 move-outs now that sounds bad, but whenever this is almost three years so you didn’t even get one term in the year on average and the average days vacant between tenants get this you’re listening everybody 11.66 days not even 12 days of vacancy okay on average, the total vacancy percentage here is two 2.34%, and again we won’t allow you to project anything below 8% so you’re beaten the heck out of it, and we’ve been working with you for a few years and just so as not to keep everybody in suspense here. We’re talking about Saint Robert Missouri. Okay I don’t want to keep the listeners in suspense for too long as to what market we are talking about with these great records, but Zach what is going on in Saint Robert, why are you having such good success there? I mean other than tooting your horn with the management which is great.
Zach: Obviously at Saint Robert you have Fort Leonard Wood which is the units that we are discussing in this vacancy reports are within four miles away from Fort Leonard Wood and these obviously go, these vacancy reports go all the way back to January 1st of 2009 and since then we have seen the base and Fort Leonard Wood expand substantially which has obviously increased demand. It’s now graduating a 100,000 over a 100,000 soldiers and students per year through it which in turn always creates a very good rental market.
Jason Hartman: Yeah and how long you’ve been operating in that market?
Zach: We brought our first unit online back ’08 so I’ve been there almost four years now, going on four years.
Jason Hartman: So four years and pretty good success that’s for sure pretty good success is an understatement. Now, I bought a ten unit property there with some wonderful clients of ours who are probably listening to this show right now Denise and Elton and how is that one going?
Zach: That one we brought aligned in May and I think by mid-June, we were I — actually by 1st June I believe we were eight out of ten I think through June we had the last two least that I believe 1st July or mid July we were 100% occupied. I believe we were 100% occupied right now in that building.
Jason Hartman: Well, it’s hard to complain about 100% occupancy that’s for darned sure so good, good job. Let’s look at another one of these reports Zach, now this one we are talking about 24 units here and we are talking about a slightly longer period of 949 days. We had 70 move-outs, but the average days vacant between tenants was 9.71 days, 9.71 this is on the report you just gave me, and this equates to a 2.88% vacancy rate pretty awesome and I’m looking at a report here with the actual names of the tenants and this is the real deal unless you are just completely making this up okay.
Zach: I don’t have that much time on my hand.
Jason Hartman: So tell us a little bit more about what you’re doing to get these units and really keep these units leased and get these lease so quickly between tenants.
Zach: These units would actually found the target market of we do a lot of one year less tenant, one year less leases on these type of units, and these are actually identical to the ten unit building you’re involved with. These just had been online since February 1st of 2009 when we actually finished up these at least these two 12 year buildings and stabilized and the units are identical to the current 10 unit buildings are involved with just a longer time obviously stretched out over 949 days you can see what happened with 2.88% vacancy rate. We are targeting with these the niche market a lot of people that are coming in for Captain’s courses and maybe a lot of times higher ranking soldiers that are renting the same, that can be in for six months Captain’s course and as those courses come through they graduate and then the next one comes in. And you can always tell by our vacancy report and average number of days they get a 9.71 that even if we turn over more than one time a year on the unit it’s a very quick turnover, and it works very, very well obviously we tapped a very strong need in the area.
Jason Hartman: And talk to us a little bit about how the well before we switch from vacancy actually before we do this I want to just go for one more report summary okay. But before you do that Zach tell us about the product types mainly duplexes right is that why you are working on mostly?
Zach: A combo actually about 50-50 between apartments and duplexes.
Jason Hartman: And when you say apartments what unit sizes are those?
Zach: These are one bedroom. All apartment buildings that are — we do anywhere from four unit buildings all the way up to 16 unit buildings and it’s a different variation of on the size of building all the units are identical. They are all one bedroom, one bathroom, they have a carport for their unit and they’re all around 640 square foot per unit.
Jason Hartman: And so you’re finding those small really almost efficiency type units are really the most desirable in your market huh?
Zach: They offered this and that with the apartment building and once we go to the duplexes. We get into the two bedroom two bath type units and a duplex on the two bedroom unit were right around 1140 square feet per of living space per side, and then on the two bedroom duplexes were 1380 per site.
Jason Hartman: So let’s take on those three bedrooms as an example; because I want to switch to that in just a moment but let me just share one more vacancy report summary here. Now, this is the total of 16 units and there were six move-outs. This is a shorter time period. Its 615 days and the average days vacant here in this report was 6.8 vacant so not even a week not even seven days and vacancy percentage here only 1.48% that’s phenomenal. Now, let’s switch gears here but before we switch gears on that I know I keep saying I’m going to switch gears. I’m going to get to the price thing as I have got a question for you about that. But when landlords are looking at vacancy rates it would be deceiving to look at and I’m going to spring this on you Zach because you are probably not ready for this one because we didn’t talk about it and you were not expecting it. It would be deceiving just to look at vacancy rate, and think that that’s her total issue because what it assumes Zach is it assumes that everybody’s paying the rent so you folks also got a look at collection issues. Now, I know from the military tenants I’ve had over the years and I’ve had several of them. The vast majority have been great just great tenants, and I don’t have collection problems with military tenants.
Zach: No and me do not either.
Jason Hartman: Yeah so is the vacancy rate I guess the way to say it is — is that an economic occupancy rate or a physical occupancy rate. In other words someone could be in the house, but not paying the rent or are they paying the rent. What are collections like? Do you have collection issues?
Zach: That is technically a leased state to leased state, so that is a physical occupancy date report. Now, as far as collections and stuff, we could figure those in, those are not enough to even make a blip in this due to it being 95% of our attendance being military.
Jason Hartman: And what does that mean military I mean I know what it does but I want you to explain to the listeners because you have more first-hand experience than I do. I just have a several military tenants I’ve had over the years, but when a military tenant doesn’t pay the rent what do you do?
Zach: We go to their commanding officer and we have some ends there. Technically we can find out who their commanding officer is. Most of the time we get that information if at all available at the very front end when they are moving in we request their commanding officer’s name and contact information. If we ever have an issue we go straight to them and generally speaking we get our money very quickly, much more than then pure normal non-military type.
Jason Hartman: Yeah the civilian tenant doesn’t had to do like 6000 push-ups if they don’t pay the rent right?
Zach: That’s correct. The military definitely frowns on them any kind of financial hardships or anything like that, and they definitely step in and they try to get them straighten that out any kind of off-base private issue.
Jason Hartman: Yeah military people are great. I mean they are so disciplined, and generally just very, very good people. Okay so let’s switch here finally and let’s talk about price because something that’s very interesting is all of these investor groups out there my competitors you know their marketing properties as though they are below market and I won’t allow any of our local market specialists whether they are developers or rehabbers we have different deals in different markets. Sometimes we have developers that are building brand-new stuff as it is in your case, but sometimes we have rehabbers that are buying properties at auctions and rehabbing them and then getting them ready for investors to buy and rent or buy and flip, and they all want to say the properties are below market, and I think that a lot of times that’s really, really a misnomer. It’s not true and that’s the reason I won’t allow our local market specialist to for example put it on the perform of the market value, initial market value versus cost, I won’t let them make those numbers different because if they make them different the ROI, the Return On Investment on that investment it goes through the roof like if you were to say a property is just $3000 below market value it would turn an ROI projection of 20 to 30 to 35% into 250% annually I mean it’s just, its crazy. The numbers just they go — they go nuts. Nobody would believe it in, and plus it creates too much liability for us so we won’t allow that okay it’s we just think its wrong. But now, but I want you to explain what goes on with the pricing of your units and let’s use a duplex, a three-bedroom duplex is an example so you got 1380 square feet on both sides. Our clients can buy these for 1899 right?
Zach: That’s correct.
Jason Hartman: Okay so 1899 and we are going to take 1380 square feet we are going to multiply it times two okay that gives us 2760 square feet okay so everybody remember that number because we are going to come back to in a minute. Now Zach what’s the highest price you’ve sold one of these duplexes for?
Zach: I think it was 236,000 right on 235.
Jason Hartman: How long ago?
Zach: 235 was sometime in 2011 the buildings I have sold for that five to seven months somewhere around that.
Jason Hartman: So this year, so earlier this year for $235,000 now if we take — now here is the BS detector folks for everybody listening. This is the BS detector when you’re talking about a brand-new duplex okay any brand-new structure all you do is I want you to take your calculator like I’m doing and take $235,000 and divided by 2760 square feet and we see that the cost per square foot there is $85 per square foot. Now, that is a legitimate number for brand-new construction $85 per square foot so the first thing that comes to mind is why would anybody come along and pay you $235,000 wouldn’t they simply check the comparable sales and realize that you’re selling these properties to our investors for $189,900 let’s just call it 190. What don’t they know?
Zach: They do not know how we structured the deals and that it were our competitive advantage if you will kind of lies with being in the construction company, the property management company and this one developer we have the ability to do things that most other investors will have access to or provide different ways to find these things to other investors don’t have access to.
Jason Hartman: Okay but let’s get specific about that because what you do is our client really is — is not buying the property from you per se. They are hiring you to build it for them, right?
Zach: That’s correct.
Jason Hartman: So when they hire you to build it for them the price that they ultimately pay never really shows up as a comparable sale does it?
Zach: That’s correct, and this is not marketed locally either. So nobody has access to it. Nobody even knows about it.
Jason Hartman: So they’re not in the MLS in the Multiple Listing Service so it’s a different deal, and there’s nothing to prevent you from building a home for someone you can do that, your developer. Now, if you build a home for what they call for spec which is the way you’re doing it for a regular consumer you stick it in the MLS, and you get them to pay $235,000 for it but you can’t get the economy of scale where you’re selling a lot of them to investors through our group in that scenario so for those you really do have to sell them for more, don’t you?
Zach: That’s correct. So the investor we on the land, we developed the land, we owned the lot. The events will come in execute a lot purchase contract to acquire the ground that we would build a duplex on. At the same time that they execute a lot purchase contract. They would execute a construction agreement, a specification agreement, a floor plan agreement and what they will state is we are going to build you a building turnkey to you and we are going to give it to you for x amount of dollars and build them once you’re done, you’re done. Now, we actually even I will take it a step further I’m going to spring this on you Jason, we actually care all of your interest during the construction inside the turnkey price. We cover all the appliances of the yards everything, the building is absolutely ready whenever you’re done so much that we actually cover your interest until there is one pin in place so as a developer and owning the property manager company we are assuming that you will not take over an empty building, take over any kind of the payment on empty building so you — you are at least be 50% occupied so by doing it this way you’re not buying a building, you’re having a building built, and while it on the surface and at first glance it doesn’t seem like much of a difference. It’s a huge difference in the marketplace and as Jason was saying in the form of passion just on the multi list because it’s never — technically all that you’re selling would be the lot. And we could put that in the multi list that’s a problem. That won’t hurt anything, but the buildings so if you are finding in your name you are acting as and if there is many developer because you are providing the financing to build the building which in turn it’s not a sale. There is the build out and to build to you potentially.
Jason Hartman: So one of the big risk people have with building their own property is this. And my mother’s going through it right now so I will share that experience because many of our listeners have been kind of interested in the story about my mom building her house and it’s exactly this. It’s that you go and you financed project and this happened to thousands of investors in Florida and then there is a lot of litigation out of this stuff that Russ Whitney was selling a lot of properties like this. Marshal Rediq was selling a lot of properties like this and it was it was a big problem in Florida. We never did that main Florida area. We did a little bit of business up in the panhandle in the military areas like Pensacola where I own property myself and those are fared much better but the rest of Florida is pretty much a bloodbath and what would happen there is people would do deals similar to this in the way they got burned is because the builder would never get around building the house or finishing the house and so my mother is building this 9000 square foot house or dream home, the southern mansion in golf shore is Alabama and she’s having the same problem because she can’t get people to get their job done to get the work done. The painting contractor comes in and makes promise oh I have it painted in the month and here we go months later the painting still isn’t finished and use every excuse in the book oh the weather, the this and that and that’s where the risk really comes in for the investor developer because our listener is really an investor developer and what they’re doing is they’re hiring a developer to take that risk, put their money where their mouth is, and carry all of the cost until when until the property is rented right?
Zach: That’s correct until there is one tenant in place.
Jason Hartman: Okay one of the two tenants so they do the risk of not getting the other tenant but at least it will be half occupied in and it will be finished because it has to be finished to get the certificate of occupancy.
Jason Hartman: Yeah okay good. What else should people know?
Zach: Typically it takes people two to three weeks obviously and see if they can see the reports that we were discussing earlier, it takes typically two to three weeks. I mean you are going to have your second tenant in place so its typically a very sort period of time for the second tenant is in place so very overall conditionally there has been a little risk there as well so that’s a very good thing.
Jason Hartman: And you’ve got a new financing plan that we are going to talk about on a future show. You’ve got to get it clear of accounting legal get all that done, and it’s pretty exciting, and pretty interesting so we will have you back here on the future show to talk about that, but just give us a little overview of the area and why it’s desirable and the product that you’re selling and we started in kind of backwards on this one where we talked first about vacancy then we talked about the pricing issue and how to build in a profit for oneself as a developer basically a $45,000 of potential profit there, but you talk about the market in the product if you would.
Zach: Well, just start with the 10000 foot view. The reason we are — the question I get all the time from investors is how can you do this at 189,000 to us, and then still take them for 235 aside from just the appraisal and those types of things. How can there be that much margin in there because if you do the calculations 189 to 235 that’s a huge developer margin, typical construction margins are not that big, little loan for us, allow us to do the building to the investor 189 and still have enough margin for us to survive. And there’s a few different reasons for that and factors at play. The first one it comes to mind is by doing 189 we did our economies of scale. We can run for the area a decent amount of volume we can run anywhere from 15 to 25 duplexes a years so anywhere from 30 to 50 that’s a year, and that in turn gives us in this size of an area, in this demographic different demographic of an area that gives a substantial control over labor and a substantial control over materials and pricing and everything in the area. And it gives us buying power to in turn bring down our power that built price to allow us to be able to build for the 189 and have enough margin in there. If we were coming in on a retail side like we are talking about 235 the reason $85 a square foot is completely legit on new construction and it is actually completely legit in this area because for typical volumes and typical absorption of sales for a developer or builder to build that on spec they’re not going to do 15 to 25 buildings year and to put it only if we could come in and build sell 15 to 25 building a year retail we would probably do that, and not even mess with that. You seem the investors to put it very bluntly.
Jason Hartman: You used to be able to do that. I mean during the heyday during the roaring 2005 era I will call it, the money printing era and that craziness anybody can get mortgage. You know a developer could do that and they would make obscene margins. They could build a tract of 40 properties with no buyers. They just built — they could get the financing to build them first of all. They could just build the tract of 40 well, really they could build the tract of a couple 100 units, and the buyers would just come on in and buy them if you build it they will come field of dreams, but you can’t do that nowadays it just doesn’t work anymore. And so that’s why the investment model is much more efficient for you as the developer right?
Zach: Absolutely and also just as you were saying we don’t have to build it and they will come which in my conservative stance is that it equates to risk and I’m very risk-averse and we do not build it, and they will come — we make the investor come, and they will build it which in turn decreases our risk substantially which in turn makes our risk reward from a construction company and developer and everything and it make, it puts in line to were if the comfort level that I’m okay with by having the investor already speaking for to carry it on typically carrying the day and the loan and everything on the investor balance sheet versus us carrying it on our construction balance sheet, construction companies balance sheet, and those are the two biggest contributing factors to allow us to come in, and hit this type of price point because we are so building initially cheaper then market value in the area. One more quick thing I want to add to that is that’s not going to last forever while labor pricing just so the construction industry as a whole, labor pricing is very, very cheap right now. Labors not going to get any cheaper material pricing, material prices are rock bottom. They are not going to get any cheaper. At the first opportunity for construction the pickup and here is what we were going to see in the construction industry. There is enough subcontractors that have went out of business that the few that are still standing are getting all the current business and they’re just coasting and they’re just surviving if you will, and they are going to survive. They are the best of the best that are left. But as soon as the volume of construction picks up you have a much smaller labor pool to pool from so in turn that’s going to enable them to raise the prices very quickly and the same analogy is in place on the material supply side so as an investor when you are getting in for these type of price points are really below market value you’re going to — I believe cutting here long Jason you always say that the actual replacement cost I can’t remember your exact verbiage you always use.
Jason Hartman: Regression to replacement cost that’s my famous phrase regression to replacement cost.
Zach: There you go. I will send you a nickel that I owe you bringing it [too totally].
Jason Hartman: My royalties yes.
Zach: Your royalties on that, but you are going to see the same thing because you are going to see in place in the construction industry, and it maybe two years now. It may be a year from now. It may be three years from now. And every market going to be different for that but every market you’re going to see a very quick ramp-up of construction cost to the decrease in the size of the labor pool and the decrease in the amount of material suppliers and there is going to be a disproportionate old supply to demand and its going to go to polar opposite direction very quickly when supply are just giving volume that’s picked up in the construction industry.
Jason Hartman: Well, you know what I think it’s going to be, I think it’s just going to be inflation-driven basically. Now, and we should just differentiate in all fairness and most people say well, prices will rise well, that’s true but that’s in nominal dollars maybe or maybe not I’m not sure yet in real dollars that were this significance in real dollars will be much less, but the thing is, is that you arbitrage that nominal versus real dollar equation with financing and that’s the beauty for a real estate investor if there’s 10% and we’ve talked about this in prior shows so I’m not going into it in detail. Listeners go back to prior shows Creating Wealth home study course, come to the Meet the Masters event what I thought let’s not more do this, too long to explain now. But basically it’s like this. If you get a five to one leverage ratio so you’re ultimately putting 20% down a property just for a simplistic example. If you have a five to one leverage ratio if inflation is in the future 10% then you normally just by owning the property with cash, you are going to keep pace with inflation because real dollars to real dollars it’s just a real dollar increase it’s not a true gain. But if you finance it, if you’re going to outpace inflation by a multiple of five 500% this is why people become so wealthy owning income property properly structured, and that’s what we are here to help our listeners do so go to jasonhartman.com and have us help you with that, but yeah absolutely that’s an amazing opportunity, no question about it. What else do you have to tell us on that Zach?
Zach: Along with the construction pricing and where we’re at with the investor versus retail price points and that that the market value, the market itself in the local economy is booming with the military if you don’t have job lost in the military you don’t have, you don’t have wage decreases if there is inflation, military people will get generally speaking always get cost-of-living increases which in turn means you have nice rental increases so those two things coupled together really helped to hedge this area against inflation when and not necessarily it, but when it comes that coupled with just the economy and what’s going on the area with the growth of the installation. The growth is outpacing these — the supply side by far because construction financing is still very tight, and it is still — I will be honest. Nobody in the area focuses on multi family. Nobody in the area understands it’s a smaller demographic and it’s not big enough to attract larger money pools to come in and drop two and three four hundred units of the time in the area its smaller developers we develop multi families and anybody else in the area, and we develop about 60 to a 100 units a year, and we will keep on that pace. It’s a solid good pace that we can absorb and it’s strong without getting way too ambitious and increase in the supply side too much. It’s good and will keep a good thumb on that market.
Jason Hartman: Well, what you seem to have really done and you succeeded at it quite well my hats off to you is you’re a big city guy because you don’t even live in Saint Roberts, you live in Kansas city so here you’re a big city guy that came into a small town that’s largely a government-funded small town, and through the military through gigantic military base, and you’re in a place where there aren’t a lot of like really sophisticated real estate development type people that are competing with you so that was really a brilliant strategy hats off to you.
Zach: Thank you, really done well.
Jason Hartman: Really good, well dumb luck, real good strategy. Hey you know what I was saying I’d rather be lucky than good any day of the week.
Zach: Exactly you know the rent of value in the area, the rent to build cost is highly disproportionate in the right direction from an investor’s point of view and it’s a very good opportunity to do — jump on, and I bounced on it.
Jason Hartman: Well, it’s that way in a hotel as well. And the problem with hotels is they can keep their units occupied enough, but because of just the hotel industry in the way that whole business model works, but when a hotel is providing in service to its very short-term tenant is it’s providing convenience and mobility, and I said it to someone yesterday I was at the W hotel in Scottsdale Arizona and I was talking to this girl, she was there with her dog. We were going to yoga class. I know it’s something you think you would only do in California, but yoga for dogs I know it’s hilarious, right? And she said she was interested in real estate investing, and she said she just moved here with her fiancé for a job from Dallas moved to Scottsdale Arizona, and what’s interesting is that I said to her because she was thinking of should I buy a place for myself, should we buy a place for our self here or should we buy rental property, and I have been reading rich dad poor dad etcetera, and I said hands-down rental property because the best thing you can have on a resume nowadays is mobility. The ability to move for a job that is what will keep you employed so as investors, as landlords that’s what we are providing to people. We’re allowing them to stick mobility on their resume where they only have a one year lease instead of a house that they are just completely stuck with so I think we’re providing a great service. I think landlords, investors like us will literally help increase the rate of employment and decrease the rate of unemployment, and so it’s a great thing that we’re doing and with military people they need mobility so they’re not looking to buy stuff as much they’re looking to rent stuff, right?
Zach: Absolutely. They defiantly for mobility most people they are for three years or less, and generally speaking they can’t buy a single family home recoup commissions and everything, but between the time they move there, buy it, and need to sell up again so it makes perfect sense for them to be renters and for two or three years although there.
Jason Hartman: That’s a great strategy. Okay good, well hey thank you so much for sharing to stay. We look forward to having you back on to talk about a financing opportunity, and we appreciate it. Good luck keeping those vacancies as low as they are. Good job.
Zach: Appreciate it Jason, thank you.
Introduction: This show is produced by the Hartman media company. All rights reserved. For distribution or publication rights and media interviews, please visit www.hartmanmedia.com, or email [email protected] Nothing on this show should be considered specific personal or professional advice. Please consult an appropriate tax, legal, real estate, or business professional for individualized advice. Opinions of guests are their own, and the host is acting on behalf of Platinum Properties Investor Network Inc exclusively. (Top image: Flickr | USACE Europe District)
The Solomon Success Show
Transcribed by: Renee