Jason Hartman uses this beginning of the show to discuss creative destruction. He looks at our acceleration and how the Zoom company is one of many fast-tracking technology applications. Jason discusses location dependence and how it is not as relevant. Many people have to be more adaptable. Later, Jason discusses the Rentier class and goes into some economic ideas as it is related to the pandemic. He also explains why inflation has been so low even with the amount of money being created.
This show is produced by the Hartman media company. For more information and links to all our great podcasts, visit Hartman media.com.
Welcome to the young wealth show where you’ll truly learn how to make, spend and invest money for an awesome life. Get the real life stuff that wasn’t part of your school curriculum. Young wilt gives you innovative new ways of dealing with your finances, as well as the skills and tools you’re going to need to survive and be successful out on your own. Let the young wealth show be your GPS to take you from clueless to clued in. here’s your host, Jason Hartman with young well
Jason Hartman 0:51
it’s my pleasure. Welcome Evan back. We’ve got a few big topics to talk about. Today, we’re going to talk about the Ron ta class, we’re going to talk about People getting too dang greedy. We’re going to talk about the big corporate tenants that don’t want to pay their commercial landlords rent or don’t want to pay the contracted rent. And we’re going to talk about Florida’s a grade getting an A and A for effort in their Coronavirus, reopening strategy, and more Evan Welcome back.
Jason, it is wonderful to be with you as always so much going on even though we’re at home. It’s just it’s nonstop action. And in work to do
Jason Hartman 1:32
you know, I have been completely I don’t know, puzzled, envious. I’m not sure what, by people saying, Well, you know, everybody’s just sitting at home. Like they’re not doing it. I’m so busy. Yeah, yeah. If I wasn’t sitting at home, I don’t know how to get anything done. I mean, I need to be sitting at home right now. There’s just way too much going on.
various areas is you know, and this is this is the time I think you’ve said this, that You know, good times make millionaires recessions make billionaires now I don’t know.
Jason Hartman 2:08
Let me give you the Exactly. recessions make millionaires, depressions, billionaires. Yeah. That actually really is true because they’re the world’s first billionaire Jay Paul Getty became a billionaire by buying cheap oil companies during the Great Depression, not recession depression. And you know, the bad economic times, always create monumental opportunities. And you know, we’ve talked about it like we’ve talked about Joseph Schumpeter, my favorite economist and creative destruction. And we’ve talked about how, like the whole thing that was coming at us in five 810 years, is here sooner because we were forced to do it. Necessity is the mother of invention. Everybody in the world now, so Suddenly knows how to use every teleconferencing technology. Whereas before they were resisting it. And now that is making my quote from 2012 even more meaningful than it’s ever been. And what was that quote? Let me remind you location is less meaningful than it’s ever been in human. Oh, yeah.
Jason Hartman 3:23
And now, even more so. And so people are just going to be fleeing to quality of life areas. Like I talked about. JOHN has been the author of the mega trends books in the 80s said his big technology, why he could live in Telluride, Colorado, a beautiful ski resort, and didn’t need to love it. Yeah, it’s a great place. And he didn’t need to live in a city was because of technology enabled that opportunity. And the big technology was listers Federal Express,
but I don’t want people to misunderstand what you’re saying. You’re saying location, but you’re still saying location. It’s important, but it’s not like you’re not you’re saying that being in downtown Chicago or downtown New York isn’t important. If you want to have a successful career and for those kind of business context, the fact the location is somewhat more important to be in a low density area, that that is actually becoming more attractive. The conventional understanding of the importance of location, you know, being on the coast, you know, that’s, that’s not doesn’t have the value at once. Right, right. Right. Yeah. Yeah, absolutely. You clarified it. Thank you for doing that. And I would say if you think you need to be in a place where you can get paid more for your career if you need it. in Silicon Valley, New York City, San Francisco, any of these expensive areas that were the areas that really were the centers of the world for ever, really pretty much right or at least since industrialization. Why on earth would anyone want to live in San Francisco right now unless that was the only place you could live. I mean, yeah. So expensive. It’s dangerous. I mean, my goodness. Yeah,
Jason Hartman 5:08
no, I’ll say it this way. No es necesito Okay, Carmen can correct my bad Spanish okay. She’s probably listening in her mom or new listener who I answered that question hopefully about you know, newbies, you can invest. But you got to have a little buffer right now a little bigger cushion. We don’t want you to come into a saying, I just saved up my, my last dollar. I’ve got enough for the down payment closing cost. I’m ready. No, you’re not. No, you’re not go somewhere else. Because we don’t want your money. Your money’s no good here. You gotta have a cushion right now. Okay. So, you know, times are a little uncertain, obviously. But I think there’s great opportunity. So if you’ve got that buffer, that cushion, you should be buying up stuff like crazy right now. Tony is good. We all see this. You know what, in five years, everybody’s going to say, you know, I was listening to Jason and haven’t talked about this This this mass migration to the quality of life areas to the suburbs out of the cities. And that was like 20 million moves ago. And now, the prices have all gone up in the places that used to be cheap. And they’ve gone down in the places they used to be expensive.
I remember you talking you talking once recently about how you were going to buy a whole bunch of mobile home parks five or six years ago and you thought they were too expensive in
Jason Hartman 6:28
2011. Yeah, so nine years ago, yeah. And I thought they were too expensive. Now I did fortunately buy one. And that’s been ugly, because it’s been a great investment. And by the way, it’s interesting because that property has a restaurant, and we’ve always been debating do we keep the restaurant Should we get rid of the restaurant, and now that decision has become much easier. So Coronavirus, made our decision for us. We’re definitely getting rid of the restaurant. And by the way, this mobile home park is it’s like a little bit of a resort. It’s got like A beach area, it’s got, you know, boat docks within jetski docks, you know, it’s waterfront on the river. And we are building some kind of modular single family homes. They’re nice, by the way, they’re really nice. And so we’re doing that on the waterfront area, getting the mobile homes out of that waterfront area. And we can build three where the restaurant is great, you know, he’s my partner is a client, Steve, you many of you met him at our meet the Masters event or maybe some of our other events. So that’s what we’re going to do. So that decision became very easy. Allah Corona.
So the other thing in terms of depression, creating billionaires and I think I have really noticed, you know, Warren Buffett said, you know, when the tide comes in, you can see who’s swimming naked when the tide goes out. Yeah, you know, you can see which businesses and which leaders are really creative and can really adapt to the times and who really has the best interest of the customer. You know, I guess this was a topic we were going to talk about greed you See which which leaders and which companies adapt, serve, figure out a way to thrive in difficult circumstances in which just can’t, which are just paralyzed, and they don’t know what to do. And I think that’s the people who have that insight, that creativity, that hard work ethic, that’s who survives, and then they make more money in the long run.
Jason Hartman 8:20
And it’s the old metaphor of look at the trees that survive a big storm. I live in Florida, right? What trees survive a hurricane, and which ones fall over? Right? The ones that bend with the wind are flexible, they survive, and that, you know, you’ve got to be adaptable. in an environment like this or really, in life in general, you’ve got to be adaptable, and you’ve got to not put too terribly much stock in whatever’s going on. There’s a great quote I like and forgive me if I get this wrong, but it was like in matters of fashion, go with the wind in matters of principle. You know, stand like a rock. Okay. And so that’s the way to do it. So, you know, it doesn’t mean sacrifice ethics or principle now. But when it comes to just, you know, some things you should just kind of be easygoing about and go with the flow in other things. You should stand your ground and be really firm about them.
So there’s a wonderful store here in Chicagoland called apt abt, which is sort of like a Best Buy, but infinitely better. And they have this sign all around the store that says, the answer to any reasonable request is yes. And I think that that creates this ethic of we’re going to figure out a way to make it work. No, we’re not going to give you this for free. But we will figure out ways to meet your needs. And I think that’s, that’s a great attitude.
Jason Hartman 9:44
Yeah. Well, hey, we got a bunch of stuff to go through Evan. And you know, that’s like the customer’s always right if the customers wrong see rule number one. So we got a bunch of stuff to go through. Let’s talk first about the Ron ta class and I believe That’s the way that’s pronounce. And you said that came from my, well, not my favorite economists. But what I say is the most influential economist, right,
right. Karl Marx. Yeah. Yeah. I mean, my least favorite economists,
Jason Hartman 10:12
but the most influential. Oh, for sure,
the most influential. I mean, we saw it in Soviet Union, but he was critical of the Ron ta class. And in many ways, rightfully so because these were people that essentially, their land was worked by serfs, and they collected the profits. And people live, you know, miserable lives supporting the the landowners and the landowners. They didn’t earn the land, they just inherited it. So and there was no social safety net back then. So people were suffering and, you know, it helped create this revolution, but he was so critical. What he missed is all the good things that private property does for people, you know, it forces you to be efficient with your land when there’s incentives and so forth. But yeah, he created that term.
Jason Hartman 10:55
Well, it’s really interesting, and we think all of our listeners should have aspire to be part of the Ron ta class, okay? Now
we don’t want them to be lazy. We want them to keep working.
Jason Hartman 11:07
Not like not like that, but Karl Marx and Bernie Sanders will probably still not like you. Okay? And they’re pretty much cut from the same cloth and Elizabeth Warren and Joe Biden too far behind. But But anyway,
Jason Hartman 11:22
concept is that look, there’s this age old debate and battle between what is the value labor brings to me anything any endeavor? And what is the value capital brings? So capital is is money of course, but it’s also land land is capital or equipment is capital. And then there’s labor the people that come and work on the assembly line make the widgets work for land, farmland, right? And so our society forever has been trying to figure out how to apportion The rewards correctly to each of those classes. And what’s interesting is that you, as a Jewish rabbi, probably have a lot to say about this because there’s a whole biblical thing about, you know, Jesus and the money changers and the Jews versus the Christians. And then the Muslims have some interesting stuff to say about this too, because Muslim culture, you know, there’s Hello banking. And yes, and they don’t allow interest, but they’ve found ways around it. And forgive me, by the way, Muslim listeners, I’m no expert on this at all. I’ve read a little bit about it.
I are always ways around. Yeah.
Jason Hartman 12:36
They basically found ways to like lease things rather than sell them with interest, right. What do you have
to say Jewish law in Jewish law? There’s something called the sabbatical year, which is every seven years you’re supposed to forgive all deaths. Yeah. And 2000 years ago, know, exactly 2000 years ago that leaders the Jewish community said that is it possible to carry out essentially then no one would ever loan money, especially as you get close to the Jubilee Year is a six year. So So what they did was they said during the seventh year, the debt is transferred to essentially an escrow. They called it the bait Diem, which is a legal court, and you continue to pay your interest to the Beit Dean to the escrow for an entire year. And then the escrow goes back to the owner. So they said, we’re not going to change God’s law. This is God’s law, but we are going to adapt God’s law to our time. And you know, it’s interesting. We talked about the Ron ta class for most of history in Europe, Jews were not allowed to own land. That’s one of the reasons that many Jews became bankers, because they could loan money but they couldn’t own land and essentially created a different source of passive income if we want to think of it that way.
Jason Hartman 13:47
And that was also the reason so many Jews went into the professions,
Jason Hartman 13:52
they couldn’t get jobs. And so they had to go out and like hang out their own shingle, if you will. And So, you know, they really focused on education and, and getting into the profession. So it’s interesting, but I don’t understand that that Jubilee thing that you would pay on the seventh year when you should have a sabbatical. You kept paying.
So what’s because it wasn’t it never happened. It was just essentially, it was never followed. Because the rabbi’s said if we follow, it will destroy economies, no one will ever loan money. So they would transfer let’s say, I owed you, you know, $100 a month, during the seventh year, you would transfer my obligation to a bank instead of yourself. So, so I would continue to pay the bank. And then after the seventh year was over, it would go back to you. So you weren’t holding the debt on top of me. So they essentially that was the way of getting around the law.
Jason Hartman 14:51
Right. Yeah. Interesting. Okay, interesting, but
they were smart to get around it. Because if that law was enforced, I mean, they aren’t. There’s a whole argument that talking about They said it would actually hurt poor people because no one would ever loan money. Of course, yes.
Jason Hartman 15:04
Yeah. You’ve got to have capital formation. Yes. So that that money can be lent so that it can find it look at farmland has to be financed before it can provide food. This is where Karl Marx went totally wrong. And Bernie Sanders is totally wrong. Totally wrong. Yes, there needs to be a balance and you’ve got to you know, hopefully the free market can apportion the rewards and and the reason things are so messed up today is that we’ve moved away from the free market at least that’s my argument. We don’t have enough of a free market. And and that’s the reason we have these like winner take all giant corporatocracy running the world is because it’s too hard for a small company to get capital. And it’s too easy for a big company to get caught. Yes.
Jason Hartman 15:58
Yes, you put up all these things. Barriers to raising money through the public markets, ie the stock exchange. And of course, you’re the only people can play the game are the people that can afford the compliance? And yeah, and that’s why you don’t have enough competition.
Yeah, it is. You say that there was a movement when AOC was talking about Amazon not paying any taxes.
Jason Hartman 16:21
I’m also upset about Amazon not paying taxes.
But somebody said when she was just explaining it, so she said Amazon pays no taxes were you know, at all, which I mean, because they reinvest so much and they still pay, you know, their employees pay tax and so forth. But yes,
Jason Hartman 16:36
going on to
she got her degree in economics at BU, and there was a movement to have bu withdraw her degree because she clearly didn’t learn
a whole petition.
Jason Hartman 16:50
I would love to see Yeah.
It’s, you know, it’s complicated. I think, I think some of the economic things and we’ve talked about this, you’ve talked you’ve taught us about this Are counterintuitive. I mean, Keynesian economics is counterintuitive in many ways. But in some way, even what we’re going through right now is counterintuitive to constantly throw money, throw money for money, but you know that there are certain things What did what did a cane say in the long run, we’re all dead. So we kind of have to worry about the short run and make sure we can get through these times and it doesn’t seem right.
Jason Hartman 17:19
Keynes was a very influential economist also. I don’t know if he’d be the second most influential but he’s right up there. And and you know, he’s not completely wrong. It’s just that in my opinion, it’s gone overboard, you know, right government spending, as Keynes said, Keynes concept was priming the pump, you know, you need to put to make the pump work. Most people won’t understand this. But listen, I lived on a farm for quite a while. And if you have a well, to make any pump work, you’ve got to you know, the gaskets won’t, they won’t they won’t be tight. If you don’t put some water in there. So you got to prime the pump with some water to make it start to work. Work and that was the Keynesian concept of, you know, priming the pump, right. And so right, you know, that’s not completely wrong, but of course it goes overboard. You know, let’s take a bit of a recess on this. And we got to get to some of those con event things too. But you’re standing the concept of economic rent, being in the Ron ta class as investors as landlords. Remember what I’ve said before, folks, that it is truly incredible, that you can essentially have a whole bunch of tenants, and I’m going to call them partially indentured servants. Yeah. Boy, if AOC was listening to this, she would have my head for saying that right. But here’s what I mean. And I’ve said it before, is that think of it when someone goes to apply to rent one of your houses from you. You will not want to go over a 35 Three to maybe a maximum of 40% rent to income ratio. That means that you basically own their labor for 10 to 14 days of every month. All that goes to pay for the house, they rent from you. That’s a pretty great deal. Ron ta class, I’m talking to you folks listening, right? It’s an awesome deal. And you ought to sign up for as many of those deals as you possibly can. And you can find them at Jason hartman.com. Shameless plug. Okay, you should, you should. Let’s, let’s, let’s listen to a little audio clip on this about economic rent. This is from investopedia. And I think it’s a good overview and it will give us a little fuel to talk about this before we get to our current events. Economic rent represents money paid or made in excess of the expected amount Economic rent typically occurs when a product service or property is in short supply. demand is high scarcity and exclusivity are common conditions of economic rents. A gifted basketball player provides an exclusive talent that’s scarce even within the ranks of professional sports. While he expects to be paid $10 million a year for his services. The team that signs him offers $13 million. The extra $3 million is the athletes economic rents. A clothing business wants to open a shop on exclusive beachfront property where only one vacant space remains the site sees plenty of foot traffic and offers ample opportunity for a business to prosper. The property owner expects to charge $10,000 a month as others contemplate the location the owner of the clothing business offers $11,000 a month to help her secure the exclusive spot the extra $1,000 each month the property owner collects represents economic rent, the clothing business could spend that extra $1,000 on employee raises or other invest But it’s an opportunity cost it’s willing to spend to get such a desirable property. If market conditions were perfect economic rent would not exist because competitive pressures would drive prices down. Economic rent also explains the high value of intangible assets such as patents and permits, the term should not be confused with rent, which simply refers to payment for the temporary use of an asset or property. So I just thought that would be helpful in in the discussion because you’d look at my regular listeners, if you’ve been listening to me for the last 15 years or following me for the last 16 years doing this. You know, you know that I’ve moved around a little bit on I’ve tried to find the perfect place where I want to live. And so I lived in Orange County for 25 years most of my adult life. And then I moved and I lived in Arizona for six years. I lived in Las Vegas for a year and a half. And now I live in Florida. And as I look around and I’ve looked at many cities, you No, I thought about moving to Austin Dallas, you know many many places. And as I look around and I I go to these different cities, I’m also doing a laboratory experiment for all of you listening, not just looking for my own home. All look at houses or look at apartments. I look at everything and it amazes me how homes whether they be apartments or single family homes, how they have this just natural, incredible scarcity built into the equation. And when you buy a property, you are buying a super scarce and duplicatable asset. It there is no just just like there is no other person. Exactly like you. You are completely unique. I can hear Katy Perry singing in the background fire work. Right So
Jason, you know what else that video reminded me of a story that you’ve told on the podcast a couple times. About a restaurant I, if I remember correctly, it’s in Palm Springs that you went to. And you said it’s been different places or different restaurants. And yet you think the whole time, the guy who owns the building is still collecting rent from whoever is in that building. Does that story ringabel Palm Springs? I think so you were talking about how you, you went to this place once 30 years ago, and then you went back and the buildings still there? It’s a different restaurant. But the same guy probably still collecting rent. Oh,
Jason Hartman 23:28
yeah. You know, it’d be the same owner. Yeah, but yes, words, the names change the restaurants go out or the whatever goes in and out. But the property remains very constant. Yes. And that’s one of the great things about it. Yeah, no, absolutely true. So it’s hold
Jason Hartman 23:44
acquire it. Yeah, it’s such a great asset class because it just has natural scarcity built into the equation. And no, I’m not gonna say the Will Rogers quote, although it’s true. You know, my lands are not making any more of it. Yeah. But the fact is, there’s a lot of land Yes. point is the commodities and the the zoning requirements and the cost of construction. And you know, it’s just complicated. It’s hard to duplicate real estate. And you’re a unique person, everybody’s a unique person. And guess what every property is unique, and it cannot be replaced ever. So you just have a natural scarcity built into all of the houses you own. So that’s a beautiful, wonderful thing. So, congratulations listeners. Most of you listening are probably in the Ron ta class. If you’re not reach out to us Jason hartman.com one 800 Hartman will help you get into the Ron ta class that’s right. You can charge rent and live off those rights. Okay, we got a couple articles we got to discuss seven let’s go lightning round on those.
We got a lot. But what did you make Jason about this article from the wall street journal about companies like Starbucks that are doing just fine even in this Coronavirus shut down. You know you at least buy my house the line too. Get into Starbucks is around. They don’t stop. Now. Yeah, that’s something yeah. Oh, yeah. I mean the line that the drive thru line, the drive thru line, you know, every time I drive past drive throughs Yeah, well, they look I mean, right now. They have Yeah, right. That’s right. They’re asking for rent reductions, even though they’re doing fine. What do you make of their,
Jason Hartman 25:19
you know, they’re just, they’re just opportunistic, and they’re looking to take advantage of the landlords, but I wouldn’t want to be a commercial property landlord right now, that’s for darn sure. And by the way, you know, the rent performance on the single family homes is quite good. I mean, it is really quite good. You know, by the way, folks, share your experience listeners, please go to Jason Hartman comm slash ask in tell us what’s going on with you. So far as we have seen, this is anecdotal and we’re only really two months in, people are all getting their rent. I mean, I haven’t heard of any big problems of any significant are abnormal, you know, you’re just gonna naturally have tenants that don’t pay sometimes. I mean, that’s just being a landlord. But in the middle of the pandemic, we haven’t heard of any issues with rent collection.
Yeah, fantastic. Okay, and this next article, I know this could cause a big tangent, cuz we would love to talk about this forever tangent. This is an important this is an important article from CNBC after trying for a decade, central banks might succeed at generating inflation. Well, now you you’ve been right about a lot of things, but inflation has not gone as much as
Jason Hartman 26:34
you know what I’m gonna I’m gonna say I’ve been really wrong about interest rates, but I have not been wrong about inflation. Look, we have had inflation it just, by the way, I said this on a recent episode that you haven’t heard yet and I know you haven’t, because it’s just going up today. We have not had as much inflation you know, compared to white as always question, yes, compared to the amount of money creation, inflation has been low. And what that shows to go here goes to show you is, is that the US is in a really enviable position visa V, the rest of the world. We’ve got the reserve currency, we’ve got the military to keep it that way. We’ve got all these special privileges, which kind of suck for everybody else. I’ll be the first to agree with that. But for the US, it’s great. And, you know, the question is how, you know, you listen to the Peter shifts of the world and all the doom and gloom errs, and they keep saying everything is going to collapse. The dollar is going to collapse. Yeah, we can’t have this much debt. You can’t run deficits like this. I disagree. I think they can keep kicking this can down the road for a long, long time. But inflation is definitely there. divided between consumer prices and asset inflation, divided based on how you’re definitely spending, you know, everybody’s different. Everybody has their Personal inflation rate, and also look at the fact that there has been real inflation. It’s not that much compared to money printing I agree completely. And it’s also understated. If you look at shadow stats calm versus the consumer price index. You know, we all know that’s it’s fake. Yeah. But But now, oh my god. I mean, we’ve never seen money printing like this. And we’ve never seen a Federal Reserve Chair that just, he makes no bones about it. Draw how makes no apologies. It’s like, we’re going to create more money than ever before in human history. And who cares?
I think part of this reflects, you said this right away. You might have been the first to say it, that Trump is our first real estate president and real estate investors. We love inflation. We do. So he probably has like minded people, I mean, minuchin and so I think that that there, it’s definitely part of the pie. See it in it. And it? It’s a good pot. As you said, inflation is a great policy for government. It’s a great way of dealing with debt.
Jason Hartman 29:06
Oh, it is. Listen, that is their business plan. The central banks and governments around the world, not just the US their business plan, every single one of them is inflation, inflation because inflation reduces their debt, and they all love to spend. And it’s a great deal. It really is a great deal. In the same way. Yes, for real estate investors. So, yes, align our interests with the powers that be and we’re all gonna win.
That’s right. Yeah. Yeah. That was another article that we talked about that I sent to you where minuchin is saying, we can borrow trillions of dollars because the interest rates are so low. And I said, you know, that’s what we want our clients to do on a slightly smaller scale. We’re not talking about trillions, we’re talking about 10s of thousands, sometimes hundreds of thousand, but borrow because you’re going to be making some of our pro formas would say over 30% annual returns and you’re borrowing money at 4% I think that what is incredible differentiable? Yeah,
Jason Hartman 30:03
it’s truly an amazing opportunity, you know, income properties, the most historically proven asset class in the world. It’s the most tax favored asset class in America, folks. Just not gonna beat it.
No, you’re not. And you have a guide in Jason and in his team is all of us who, yeah, who can help you along the way. A Guide is somebody who has experienced themselves and I listened to Jason and I bought properties. And it’s been incredible for me, and it, you know, in a raunchy, classic and I work hard, very hard at my job, and I love my job. But you can’t always rely on your job. You have to have other sources of income. And this is the best tax favored source of income. It’s, it’s incredible. And as you sometimes teach, Jason, sometimes we don’t see the benefits right away. But we see them when we get our tax returns. And you see how just incredibly efficient it is.
Jason Hartman 30:54
Right? Right. You don’t see all the benefits right away. It’s like that iceberg most of it is below the surface. First, and people don’t know how to do the math when it comes to income property most don’t you do. And hopefully all of you listening have gone to Jason hartman.com. You’ve watched that free video on the front page on how to analyze real estate investment that will really, really help you understand in 27 minutes, how to be a great investor. So Wow, that’s there for you. Yeah, good stuff happen. I think there was one more right.
Let’s see. We could we could?
Oh, yes, yes, yes. reopenings. Yes, at Florida. You’re in Florida. I’m in Illinois, very different. Although, to be honest with you, the Governor of Illinois. His wife and children are out there a $12 million working farm in Florida. It’s incredible. So yeah, Governor Pritzker, his family is in Florida. While he’s here in a very
Jason Hartman 31:51
different way. I got politicians, even if they don’t own the income property, they’re Bronte’s And you can see why the Ron ta class was resented because they’re wrong. Ta is another word for saying elitist. Okay, yes, but the difference is those are elitist that don’t deserve it. They did not earn that. Yes, of course they got elected, right. I get it, right. They abuse their power. And that’s why that’s why they’re so resented. Okay. So it’s, you know, it’s different than you as an income property owner. You’ve earned it. Okay, so
what about Bernie Sanders? We’re gonna go on a tangent, but he was kicked off a commune for not working hard enough. And now
Jason Hartman 32:36
somehow, they go into Congress, and they’re just ordinary people without much money, most of them, you know, summer, summer ropey, of course, but they sure end up wealthy somehow. I don’t know how that magically happens with their $190,000 a year salary, somehow, they just get magically rich when they become a congressman or senator. It’s amazing. Amazing. Amazing. Anyway, for this article wasn’t yet
Florida’s opening, Illinois is shut in. It’s, you know, going to stay. Governor Pritzker has essentially said, I’m probably going to extend I mean, he signaled that he wants to extend the shelter in place right now, no restaurants are open. And they’re just very different approaches now. I mean, I’m not sure which one is right. But a lot of what I’ve been reading lately is that Florida is doing very, very well. No, I’m really and I think most people listening are starting to agree that a lot of this has been a big sham. I mean, yeah, we we’ve, we’ve been hoodwinked, folks. I mean, yeah, Coronavirus is certainly real. I’m not wearing a tinfoil hat. I think you should take precautions. It’s a real thing. There’s no question about
Jason Hartman 33:47
it. Okay. But is the cure worse than the disease? That’s the question we have to ask us. Look, people die every day from suicide from car accidents from Regular flu from everything and no this is not the regular flu. This is more significant. There’s no question about that. But is the reaction the proper reaction? Yeah, you know, probably not
yes places Probably not. I think the more we learn the it really hit nursing homes and the elderly extremely hard. So we should that’s what Florida has actually done really well. That the percentage of deaths and nursing homes in Florida compared to New York is just increasing was like one sixth of the number
Jason Hartman 34:34
when I talk about the in my pandemic investing presentation, which by the way, you are going to get if you attend the virtual meet the Masters Yes, we’re doing meet the Masters virtually Yes. And we figured we may not get a chance to do it this year. So we got to do it virtually like everything else, but I think it’s gonna be awesome. I’m super excited. And you’re going to get the pandemic investing presentation, but one of the elements I talked about Evan, you One of the six lifestyle mega trends is multi generational living in we’re going to talk about how investors can profit from that dramatically. It’s it’s a big part of it, it’s going to be great. And the assisted living, the nursing home stuff has been just tragic. It really has.
And I think, you know, to the broader question, I do think this could mean many of our investors, we tend to, our investors tend to invest in red states compared to blue states, because because I’m more landlord friendly laws, cheaper housing. And, you know, I was just having a conversation with my wife where she said, Evan, if they don’t reopen the schools, we might have to move to Florida. Now, I have a wonderful job and I you know, I love Chicago. I love this city. So I don’t really think that’s much of a reality, but it just showed for people who can live anywhere. I mean, why wouldn’t they want to be in a place where, you know, there’s some functioning economy rather than being forced to sit in place? Well, that’s a real thing you
Jason Hartman 35:58
know, in in a lefty Meaning state, your old how the politicians and the government doing everything they can to try and make people more descendant on them yes and less self sufficient, because dependency is what brings you votes and keeps you in power. And that’s just the love, you know the world. That’s the way it works. So you’re going to see the right leaning states that are more landlord friendly, that have better properties that have better their business friendly, they’re just better in every way. And they’re the places we invest in, you’re going to see those places, more likely to help people get back to work and get back in business. There may be some additional infections, but there’ll be fewer suicides, less domestic violence, less alcoholism, less people going bankrupt. I mean, you don’t know the cascade of problems this leads to big problems.
And and then I think it also backfires in the long run because I think basically what if I’m looking at people in my neighborhood and I read between the lines, people are going out people are fighting lating this they’re doing it in secret. And I think it actually erodes respect for the institutions when you’re when you when you don’t meet the people’s need so it actually backfires that so then it’s like the boy who cried wolf, then when it actually is something important people have lost trust in government.
Jason Hartman 37:15
That’s certainly true. And, and you certainly have a bird’s eye view into that being a rabbi and dealing with people in your congregation, and I’m sure you know, their innermost secrets many times, so
yeah, well, I do and you know, everyone’s concerned, you know, this is scary. This is so much uncertainty. And I actually, we talked about how important income property is to becoming part of the Ron ta class, but it’s also important for having some clarity and security in life we are living through unprecedented times. And one way we can, people are always going to need a place to live. And so our strategy helps people gain that clarity and stability. It’s truly it can be life saving for people. I mean, you you’ve gotten testimonials from people who who lost their job, but because they had a couple of properties that they purchased from You they were able to get through it. I mean, it’s truly life saving.
Jason Hartman 38:03
Yeah, it really is. It really is. So folks, we’re here to guide you through this. This crazy time we’re living in, you know how to reach out to us and we’re here for you. And then we got to wrap it up. Thank you so much for joining me today and everybody listening, happy investing, and we will talk to you on the next episode.
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