the hartman risk evaluator for real estate investing
Post on 24-May-2015
882 Views
Preview:
TRANSCRIPT
The Hartman Risk Evaluator
By Jason Hartman
Staying Power: The Key To Successful Investing
• Who knows someone who has made money in real estate? • Lost money? Why?• Investing is not about speculation (aka gambling) or a get-rich-
quick scheme• Investing is a legitimate process of creating value• Understand that anything without income / rent is NOT an
investment; but rather a speculation• Managing cash flow is key - Rule of thumb - Jason’s “RV Ratio™”
– Rent ÷ Value = “RV Ratio™”– $1,800 ÷ $600,000 = .3%
The Hartman Risk Evaluator™
Land Value
Improvement Value
Improvement Value = Cost to Build +
Builders Profit
Factors Increasing Improvement Value•Environmentalism / building restrictions
•Industrialization of developing countries
•Raw materials cost
• 2004 Inflation 3.3%
• Steel and iron prices surged 34%, lumber was up nearly 17% and prices of gypsum, or wallboard, were up 20%
•Labor and energy costs
Land Value
Improvement Value
$815,000
100%
$156,000
19%
$660,000
81%Land Value
Improvement Value
$1,300,000
100%
$ _______
___%
$ __________%
Risk Area
The Hartman Risk Evaluator™
Land Value
Improvement Value
Improvement Value = Cost to Build + Builders Profit
Risk Area
Land Value
Land Value
Improvement Value
Improvement Value
Improvement Value = Actual
Replacement Cost + Builders Profit
The Hartman Risk Evaluator™Our Recommendation – Have a “Floor”
Asset Deflation Monetary Inflation
Land Improvement Rent OverallMortgage
PaymentBalance
Free Podcasthttp://www.JasonHartman.com/podcast/ or on iTunes
A Long Term Relationship
The Jason Hartman Team Is Here To
Help
Meet With Any Of Our Investment Counselors
For A Complimentary One-On-One
Consultation
Financial
Self-Defense In Uncertain
Times
Get Your Free Copy At:
JasonHartman.com
“Don’t wait to buy real estate,
buy real estate then wait!”- Robert Allen
www.JasonHartman.com
top related