Thu, 6 February 2014
CW 361: The Next 10 Commandments of Successful Investing from Jason Hartman’s ‘Meet the Masters of Income Property Investing’ Seminar
Listen in as Jason Hartman discusses The Next 10 Commandments of Successful Investing. This keynote speech was taped live at the opening of our 2013 Meet the Masters of Income Property Investing Event at the Hyatt Regency in Irvine, California. With all deference to the Big Guy upstairs, when it comes to income property investing, Jason Hartman realized that 10 commandments simply isn’t enough to cover such an important topic. Not when creating financial independence is at stake.
In order to get the most out of the critical wealth creation information provided in this podcast, it might help some listeners to quickly review Jason’s original 10 Commandments of Successful Investing:
1. Thou shalt become educated: Knowledge is a powerful tool. Do your due diligence and become your own best advisor.
2. Thou shalt have a professional investment counselor: Only invest with investment professionals who stay with you for the long term. Advisors should buy for themselves what they sell, putting their money where their mouth is, and get paid for producing results rather than simply for advice.
3. Thou shalt maintain control: Never leave your financial future in the hands of incompetent, unethical, or greedy brokerage houses, fund managers or corporations. Always be a direct investor.
4. Thou shalt use prudent financial planning techniques: Always invest with your goals in mind (retirement, financial freedom, creating wealth) and abide by your risk tolerance and investing style.
5. Thou shalt not gamble: Be a prudent, long-term value investor, never a get-rich-quick gambler, speculator, or flipper. Invest only in properties that make good financial sense the day you buy them.
6. Thou shalt diversify: reduce risk and maximize returns by investing in several areas, as every market is different.
7. Thou shalt be Area Agnostic™: Only invest with an advisor who is not partial to any one area or investment to avoid a conflict of interest. Don’t fall in love with your home geographical area!
8. Thou shalt borrow to maximize leverage and accelerate wealth creation: Use as much borrowed money and as little of your own money as possible as long as the borrowed money can be repaid by the tenant. Let other people’s money work for you, reduce your risk, and make you wealthy.
9. Thou shalt only invest where there is universal need: No one needs stocks, bonds, or gold but everyone needs a place to live, and with growing affluence around the world, consumption of raw materials will continue to cause upward price pressure on improved real estate.
10. Thou shalt invest only in tax-favored assets: Non-cash write-offs and deductions are money in your pocket and income property offers the best of both.