CW 461 – Jason Hartman – Land-to-Improvement Ratios & Regression to Replacement Cost

On today’s Creating Wealth Show, Jason Hartman talks about the vital side of investing that is construction cost. As an investor within real estate, it’s so important to know the situation, whether it be adjusting how much you pay contractors to match with the area itself or knowing just how much the replacements to your property would be compared with the actual cost price.

 

 

Key Takeaways

01.34 – With tickets hugely limited, it’s time to get excited about the best Meet the Masters event to date.

04.25 – As a prudent investor, you need to know the vital points about LTIs and regression to replacement costs. Learn all you need here. 

06.31 – Jason Hartman’s personal risk evaluator model relies on construction cost and land cost, and this is a great way to minimize risk when investing in real estate.

11.26 – If you’re building in a higher price area, you’re going to have to pay your contractors more because they have to be able to afford to live in that area.

14.38 - Three sources of assessing your land value: tax collector or assessor for property taxes, an insurance broker - an insurance company selling you a policy based on the property, and an appraiser. 

18.58 – If you’re interested in looking for the sorts of properties that can offer you regression to replacement opportunities, come along to the Birmingham, Alabama property tour in November.

25.06 – For more information specifically about risk assessment in investing, go to www.JasonHartman.com and type in ‘Hartman risk evaluator’ into the search bar to find podcasts and blog posts.

 

27.09 – Another recommendation for you is to look for the podcast and YouTube video about how to read a property Proforma. This is a really vital skill you can use to become a better investor.