CW 919 - Real Estate vs GOP Tax Plan vs Foreign Investment in US with Ed Mermelstein, Rheem Bell & Mermelstein
12/04/17 • 42 min
Is the home ownership rate too high? Are millennials going to enter the market and disrupt everything? To answer these questions you have to answer Jason Hartman's key question in life: compared to what? Any time you're making plans or comparing one thing to another, the question of compared to what pops up, and it's something we should continue to ask ourselves.
Is buying a rental home a smart option? Compared to what?
Should I put money toward this investment? Compared to what?
Later in the show Jason talks with Ed mermelstein, founding partner of Rheem Bell & Mermelstein LLP, about what the GOP tax plan will likely do to foreign investment in US real estate. Ed describes how foreign investors are CURRENTLY investing in the US, and whether this plan will make the money flow in to the country or go running away to other countries. This impact will have especially large effects on big name markets like New York, San Francisco, and Los Angeles.
Key Takeaways:
Jason Intro:
[2:45] "Compared to what" is the question you need to ask about everything, and it's especially important when it comes to foreign real estate investors in the United States
[8:24] Millennials are entering the housing market, but not in a significant percentage
[11:23] Jason's big piece of advice for people making their 5-year plan video
[14:21] David Copperfield & Jerry Seinfeld's net worths go to show you the power of media & scalability
[16:19] The list of countries with the highest & lowest GNI
Ed Mermelstein Interview:
[23:59] Will the proposed tax plan make the US real estate market more or less attractive to foreign investors?
[26:14] The typical business designation that foreign investors use
[28:49] Why some changes in deductions will effect investment in big cities like NY, LA, SF
[31:55] Which countries some of the major US markets get most of their foreign investment dollars from, and how the investors are using their properties
[35:58] Are any foreign governments buying US real estate?
[38:59] The US is in a sweet spot where European and Asian investors will invest, but it doesn't go overboard because of logistics like time differences and distance
Website:
"If fewer people wanted to own homes it will be better for the economy, and it will be better for investors."
Foreign investment tends to sometimes make the news in a negative manner, but we should also consider the benefits of foreign investment in the United States
Is the home ownership rate too high? Are millennials going to enter the market and disrupt everything? To answer these questions you have to answer Jason Hartman's key question in life: compared to what? Any time you're making plans or comparing one thing to another, the question of compared to what pops up, and it's something we should continue to ask ourselves.
Is buying a rental home a smart option? Compared to what?
Should I put money toward this investment? Compared to what?
Later in the show Jason talks with Ed mermelstein, founding partner of Rheem Bell & Mermelstein LLP, about what the GOP tax plan will likely do to foreign investment in US real estate. Ed describes how foreign investors are CURRENTLY investing in the US, and whether this plan will make the money flow in to the country or go running away to other countries. This impact will have especially large effects on big name markets like New York, San Francisco, and Los Angeles.
Key Takeaways:
Jason Intro:
[2:45] "Compared to what" is the question you need to ask about everything, and it's especially important when it comes to foreign real estate investors in the United States
[8:24] Millennials are entering the housing market, but not in a significant percentage
[11:23] Jason's big piece of advice for people making their 5-year plan video
[14:21] David Copperfield & Jerry Seinfeld's net worths go to show you the power of media & scalability
[16:19] The list of countries with the highest & lowest GNI
Ed Mermelstein Interview:
[23:59] Will the proposed tax plan make the US real estate market more or less attractive to foreign investors?
[26:14] The typical business designation that foreign investors use
[28:49] Why some changes in deductions will effect investment in big cities like NY, LA, SF
[31:55] Which countries some of the major US markets get most of their foreign investment dollars from, and how the investors are using their properties
[35:58] Are any foreign governments buying US real estate?
[38:59] The US is in a sweet spot where European and Asian investors will invest, but it doesn't go overboard because of logistics like time differences and distance
Website:
"If fewer people wanted to own homes it will be better for the economy, and it will be better for investors."
Foreign investment tends to sometimes make the news in a negative manner, but we should also consider the benefits of foreign investment in the United States
Previous Episode
CW 918 FBF - Know Your Financing Options: Wrap Around Mortgages & ARM
Today's Flash Back Friday comes from Episode 581, originally published in October 2015.
Understanding various mortgage types and how it affects you, the investor.
Even though Jason believes in a fixed rate, long-term, buy and hold mortgage strategy, he encourages people to be informed about the additional financing options available. This week he and Naresh take a deep dive into the adjustable-rate mortgage, breaking it down into easy to understand piece parts. They also discuss the wrap around mortgage, what the term negative rate means and give numerical examples to clearly explain each distinct type of calculation.
Key Takeaways:
[2:46] 5 Elements of adjustable-rate mortgages (ARM)
[4:19] 1. Start or Teaser rate
[5:10] 2. Index
[7:20] 3. Margin
[8:50] 4. Annual cap – 3 types
[13:38] Negative interest rates
[18:17] Negative amortization rate
[19:05] Sophisticated investing techniques
[22:43] AITD – Wrap around mortgage
[24:23] Wrap around mortgage example
Website:
Next Episode
CW 920 - Smart Technology is Improving Self Management, & Meetings Suck, Your Vivid Vision, 1-800-GOT-JUNK, COO Alliance with Cameron Herold
Jason Hartman starts off the show with Investment Counselor Carrie from a single family investment trade show in Phoenix, Arizona. The two have been meeting vendors at the trade show and are absolutely amazed at the opportunities that smart technology is creating for investors. These innovations will allow investors to truly increase their profits as they become more comfortable self managing their properties across the nation.
Then, Jason goes off topic with Cameron Herold, author of Double Double: How to Double Your Revenue and Profit in 3 Years or Less, and Meetings Suck, about how his Vivid Vision can clarify your purpose and help you get on the right path.
It's imperative that every business knows exactly what the mission is, and that every employee in the business knows where the company is headed. It's the only true way to get, and stay, ahead of the competition.
Key Takeaways:
Jason Intro:
[3:32] There's technology coming that will allow you to review tenants (and have them review you)
[8:14] Smart technology is making it easier to self-manage properties from a distance, and increasing your profits in the process
[8:56] DO YOUR 5-YEAR PLAN!
Cameron Herold Interview:
[14:15] How writing your Vivid Vision can author your future
[17:39] Reverse engineering your Vivid Vision
[20:26] Finding the "sweet spot" in length for your Vivid Vision, and how to properly use it
[23:43] What should you do with your Vivid Vision? How much does David share his?
[28:32] How to run meetings properly
[31:41] How long should you book your meetings?
Websites:
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