Jason Hartman’s 6 Reasons Why a Real Estate Investment Is Better Than Any Other
Here at the Veritas News Network, we espouse real-estate investments over any other sorts of investments for a number of reasons — and chief among them is that investing in Wall Street is akin to throwing cash down a rat-infested sewer line in New York City. But for those of you looking for a simple primer on why you should invest in real estate, we’ve whittled our number of reasons to a half-dozen and are titling those “Jason Hartman’s 6 Reasons Why a Real Estate Investment Is Better Than Any Other.”
Here are those six reasons:
1) As You’ll Learn From Jason Hartman and the Platinum Properties Investor Network, You’re Avoiding the Scam That Is Wall Street When You Invest in Real Estate
An informed investor is a wise investor, and that’s why you should stay in tune with all of the latest news for consumers, the economy and investing, such as the news stories that are brought to you here by the Veritas News Network and the Platinum Properties Investor Network.
What you won’t learn from traditional news sources is that Wall Street is a scam, and it’s something that a wise investor avoids.
Jason Hartman in his “Creating Wealth” podcasts and speaking engagements often rail against the “gold-bug mindset,” which is filled with those financial advisers who typically recommend trading in gold and other commodities for their investors, as well as such oh-so-retro tools as money markets, stocks and bonds, and CDs.
Listen instead to Hartman and his Platinum Property Investment Network counselors, who wisely will tell you that real estate investments — “the world’s most historically proven asset class” — offer packages of commodities, too, such as the copper wire, glass, and steel of which all investment rental properties are made. They also will advise you to avoid LLCs, partnerships and real estate investment trusts, over which you as an investor can lose much self-control.
“Gold is a one-dimensional asset class”
Jason Hartman often tells investors who attend group property tours sponsored by the Platinum Properties network. Unlike real estate, he notes, gold offers
“no tax benefit and no cash flow.”
2) With Housing, You’re Investing in Something for Which There’s Universal Need
Humans have three basic needs, Jason Hartman notes. They are food, clothing, and shelter. As long as the population is increasing and the U.S. housing supply is tightening, as it has recently to a 17-year low, there will be a need for shelter in many of the nation’s housing markets in the foreseeable future. There’s actually an outright demand in some of the tightest U.S. housing markets, such as Seattle, Portland and elsewhere in the Northwest.
“Why not,” Hartman asks, “let these people rent their shelter from you?”
Housing prices also are at their best in quite awhile, hitting a record high for the fourth consecutive month in February, according to Housing Wire. Cities leading the way, again, were Seattle and Portland, along with Dallas, where home prices rose at annual rates in February of 12.2 percent, 9.7 percent, and 8.8 percent, respectively. “The Big D” cracked the top three with its increase, replacing Denver.
And, as Redfin reported in April, home prices in the United States rose 7.5 percent to a median sale price of $273,000 in March as home sales made a strong showing, gaining 8.9 percent over the same time a year ago. However, the number of homes for sale declined 13 percent this past March compared to March 2016, marking the 18th consecutive month of declines in supply.
The Redfin report said 2017 remains on track to be the fastest housing market on record. The typical home that sold in March went under contract in 49 days, having 11 days from last year’s median time on market of 60 days, according to the report.
3) When You Invest in Real Estate, You’re Using Borrowed Money and Making It Work for You
Borrowing is a good tool for a management-property investor, because tenants help that investor pay off the debt, as Jason Hartman and Platinum Properties Investors often will note to you when you join their network.
When you invest in a mortgage for a single-family home, the bank requires you to put 20 percent down, but you can finance the remaining 80 percent of your loan by renting the property to a tenant — effectively outsourcing the debt obligation to someone else.
And, in addition to getting that tenant to pay that debt for you, Jason Hartman advises,
“I’m going to tell them to pay a little extra a month, and that’s called ‘positive cash flow.'”
Investors also reap tax benefits with a mortgage —benefits that gold and commodities investments don’t provide. First, there’s the IRS allowing mortgage holders to deduct 1/27th of the value of a piece of property as depreciation against their taxes each year. Other tax write-offs and deductions also might arise, including the 1031 Exchange program in which capital gains from a property’s sale can be avoided by re-investment in a similar property. There also are GO Zone tax benefits that the federal government has offered to investors after Hurricane Katrina and similar disasters in the Southeast begged for immediate investments and improvements in that region.
“Taxes are the largest single expense any of us have,” Jason Hartman says, yet “income property is the most tax-favored asset in America.”
4) With Real Estate and the Platinum Properties Investment Network, You Can Diversify Your Investments in a Geographic Sort of Way
Jason Hartman and Platinum Properties investors have been involved in several thousand real-estate transactions, owning income properties that span 13 states and several dozen cities. Platinum Properties Investor Network helps people achieve the American dream of financial freedom by purchasing income property in proven, prudent real-estate markets nationwide.
Hartman and Company also follow a maxim of diversifying a portfolio not only with such various investments as single-family homes or apartment complexes, but also to diversify those investments in a geographic sort of way, as that company has with its properties in 13 states. They say that’s a better strategy than financial planners’ promotion of not only such investments as gold and other commodities, but also stocks, mutual funds, and bonds.
Hartman cites a major California real estate downfall that occurred from 1990 to 1997, because of defense contractor layoffs and the like. At the same time, Texas was home to three of the hottest three real estate markets in the country. By offering investments in rental properties in both markets, portfolios with Hartman and Company remained balanced because of geographic diversification or owning property in both the weak state and the strong state at the time.
“Diversify, because real estate is local,” Hartman said. “When you diversify geographically into different markets, and there are 400 distinct markets in the United States, you protect yourself from downside risks.”
5) You Can Diversify Your Portfolio in Other Ways Through Real Estate, Such as Investing in Student Housing
With college enrollment expected to rise through 2022 and other studies showing that student-housing investments performed better than other real-estate investments during the financial crisis of 2008, an investment in student housing certainly seems well worth a plunge.
Enrollment in U.S. colleges and universities is expected to reach 19.8 million students by 2025, which would be an increase of 14 percent from the 2014 enrollment of 17.3 million, the National Center for Education Statistics has reported. Such statistics tell a real-estate investor that there will be demand for a housing supply in college towns across the country in the years ahead.
“The student housing market provides an excellent rent return on investment,” Jason Hartman says. The Platinum Properties Investor Network is based in Las Vegas, Nevada, where the enrollment of freshmen at the University of Las Vegas swelled to a record of 4,000 students at the start of the 2016-2017 school year. As Hartman watches UNLV students backpack and hike their way to classes, he notes: “A home that might rent for $1,000 a month to a single family could be rented by the room for nearly twice that.”
6) When Heeding the Advice of Experts Like Jason Hartman and the Platinum Properties Investors Network, You Can Always Reach Out to Others for Help When You Need It
Jason Hartman and Platinum Properties advisers educate and assist their investors in acquiring prudent investments nationwide for their portfolios. Jason’s popular educational events, speaking engagements and “Creating Wealth” podcasts have inspired and empowered hundreds of thousands of listeners in 164 countries worldwide.
You will learn when joining the Platinum Properties Investment Network that the United States offers nearly 400 distinct and diverse markets, even though most media pundits characterize the “housing market” as if it were a single entity. Please realize that real estate cannot be described that simply. It’s just not accurate — it’s “fake news,” as Donald Trump and his more ardent followers might say. There is no such thing as a United States real estate market. However, there is an Atlanta, Georgia market, and there is a Dallas, Texas real estate market.
At the Platinum Properties Investor Network, Jason Hartman and his expert investors scour the entire country — including such markets as Atlanta, Chicago, Indianapolis and Oklahoma City — with an “area agnostic” approach. They select which of these markets is the most suitable and sensible, at the present moment, to recommend to their investors. This area-agnostic approach prevents their investors from wasting countless hours to do such legwork themselves.
Through Platinum Properties’ podcasts, educational events, referrals, mentoring and software to track investments, you as an investor can easily locate, finance and purchase properties in these diverse markets with a great deal of confidence and some peace of mind.
A visit to Jason Hartman and one of Platinum Properties’ counselors will result in a free portfolio makeover — and you’ll be on your way to learning and realizing that a real-estate investment is indeed better than any other, and you’re a better investor than you were before.