Jason Hartman starts the show with an article that explains the difficulty with new construction starts in many real estate markets. In the next segment, he chats David Osborn, co-founder of Magnify Capital and best-selling author of Wealth Can’t Wait: Avoid the 7 Wealth Traps, Implement the 7 Business Pillars, and Complete a Life Audit Today! They talk about the decision to be wealthy and how to avoid common mistakes. David emphasizes how critical the mornings are.
Hey Jason, it’s mark, living here in Europe, the Czech Republic. I’m down at my Airbnb in Austria right now. And I just wanted to congratulate you on 1000. Show. Congratulations on all the shows, you probably don’t hear from only a fraction probably don’t hear from most people. Just how much the shows that helped, how much we listened to them, how much we appreciate them, and just all the best Congrats.
Welcome to the creating wealth show with Jason Hartman. You’re about to learn a new slant on investing some exciting techniques and fresh new approaches to the world’s most historically proven asset class that will enable you to create more wealth and freedom than you ever thought possible. Jason is a genuine self made multi millionaire who’s actually been there and done it. He’s a successful investor, lender, developer and entrepreneur who’s owned properties in 11 states had hundreds of tenants and been involved in thousands of real estate transactions, this program will help you follow in Jason’s footsteps on the road to your financial independence day. You really can do it. And now here’s your host, Jason Hartman with the complete solution for real estate investors.
Jason Hartman 1:15
Welcome to Episode 12 9012 nine zero this is a 10th episode show today. So you know what that means. That means we will be discussing a topic of general interest. But you will love today’s episode for sure. We have David Osborne is our guest and we are going to talk about wealth Can’t Wait, how to avoid the seven wealth traps. And then also, we’ve had held our rod on the show before and we’ve talked about his book The Miracle Morning very popular book. Today we are going to talk about David’s version of that book, Miracle Morning millionaires. However, before that, before we get to our 10th show guest today, I want to tell you just how lucky You are. I am in the Big Apple, New York City in my hotel room here about to go to a conference. Wow. reading an article here from Eric Franks with real estate consulting john burns. Amazing. You You are just so lucky as a real estate investor following my plan, the plan that I’ve been outlining for the last 15 years. Do you know how lucky you are? Well, luck is what happens when preparedness meets opportunity, as Earl Nightingale used to say, and he’s very right. So it’s not luck. It’s not even good fortune. It’s preparedness meeting opportunity. And why do I say this? Well, because homebuilding is down. So much coming out of the Great Recession, and compared to the peak years before the Great Recession. I am going to share with you some stats that will absolutely blow your mind and this is why there is Such an inventory shortage. And, of course, we’ve been talking about and experiencing this for many, many years. It’s just amazing to really look at how significant it is, and how you are holding as an investor following my plan, how you are holding properties that are in extremely limited supply that have very high demand. I mean, who cares if something has limited supply? If there’s no demand for it, right? It doesn’t matter. Something can be scarce but not valuable. And something can be plentiful, but still valuable, right. For example, oil is valuable to the entire world. The world runs on oil, right? But it’s not very scarce as as we have seen the peak oil people from the 70s and now fouzia, an ethic of Oh, we’re running out of oil world’s going to go dark. They turned out to be completely wrong, right. We’ve seen that kind of chicken little sky is falling now through Zionism going on for a long Long time, there are always those people out there who say that stuff. And they’re usually proven wrong because human ingenuity is nothing short of absolutely amazing. And humans are a great resource to solve the problems of the world as we go forward. So homebuilding less than half of what it used to be. Here’s how pronounced This is. Let me share with you a couple excerpts from Eric Frank’s article. 14 years ago, construction in the top 10 markets totaled 394,000 single family homes. Today, those markets are building 54% fewer homes. So this is quite obviously an absolutely giant difference. Now, the market with the most building in these top 10 would be Dallas, okay. Houston, Dallas, Orlando, Tampa. They’ve been building pretty well coming out of the recovery, but still way below where they need to be. The demand is Much higher than the construction and some of the worst where there’s a complete shortage in building it the worst side of the scale in the top 10 markets is Chicago. They’re only building 18% just 18% of what they were before. Now at the peak, okay of construction, which was approximately late 2006. About 2007. There were 394,000 single family home permits 394,000. And that went way down in the great recession in 2009. It was at its lowest point. And now we’ve been in this booming economy for years. And there’s a massive demand for housing. We all know that there’s no surprise there yet. We only have 191,000 permits. So less than half right? of what it was right? only about half, you know, give or take. And it, of course is imbalanced, depending on what market. So here’s some examples. He goes on in the article, right, Houston was number three in terms of construction in 2005. Dallas was number five in 2005. And they have largely recovered. But that’s going to have the wrong meaning to you. From the perspective of this article that is written for developers, for homebuilders, their idea of recovery is just more construction. That’s not the same as the market recovering, or what that might mean to investors. So the definition of recovery depends what chair you’re sitting in. Right? It depends on who you are, what you do, what your perspective is, right? It’s all about perspective in life. So that’s an example now Atlanta is building 36,000 fewer homes than it did in 2005 and Phoenix, Building 37,000 fewer. Okay, now, let’s go on and look at I just mentioned Chicago. And then of course Riverside San Bernardino, what’s known as the Inland Empire of Southern California, just inland of where I used to live when I lived in Orange County, California and growing up in Los Angeles before that, and had a very substantial real estate career in Orange County for most of my adult life. And so Riverside San Bernardino was always that outlying area that people would drive until they qualify. That’s what people do when they want to buy a home. They drive until they can qualify for a mortgage. Drive until you qualify. It’s a good saying. Chicago, Riverside, San Bernardino and Las Vegas, stand out the most building just 18 21% and 29% respectively, of the peak construction levels they had back in 2005 and 2006. Just an astonishing difference right? Now, the author goes on to say, we get asked all the time, when will the US return to 1 million or more single family housing units? In other words, the construction of 1 million or more single family housing units. And I’m pretty sure although he doesn’t say it, that means annual construction. Okay. And our quick somewhat flippin answer is, quote, when the builders can make money selling 1 million homes, unquote, see, the builders are pressed, they can’t make the numbers work. And he goes on to talk about some of the reasons why right? cost increases at every step of the way, in terms of construction and development, have pushed home prices to a point where Home Builders find it very difficult to build homes priced 250,000 and below, in places where most people want to live. There you go. So if you want Want to go long on something in your investment portfolio? Go long on single family homes in good areas that are below $250,000. Now, some of you, I mean, not some of you, well, some of you listening, but all of you clients of ours are doing that. And we’ve been helping you do that for depending on when what part of the cycle for 15 years, you’ve been going long on that kind of supply. Congratulations, congratulations. We’re making a lot of people very wealthy. I hope you’re in that group. If you’re not go to Jason hartman.com and become a client of ours. Shameless self promotion,
Jason Hartman 9:46
just shameless self promoter and come to profits in paradise at the end of October. Jason Hartman live com Get your tickets for that right away. Because, wow, this is just great news for you. Great news for you. It’s an amazing time to be alone. Okay, there’s plenty of total housing demand. But most of the demand is below today’s new home prices in 2003 before the subprime lenders broke all the rules, half of the new homes in the country are priced below $191,000. Today, half of the new homes are priced above. You ready for this listeners? $313,000. Let me just read that again. In 2003 before the subprime lenders broke all the rules, half of the new homes in the country were priced below $191,000. And today, half of the new homes are priced above $313,000.
David Osborn 10:50
Jason Hartman 10:52
Congratulations. This is wonderful news for you. And 15 of the 18 largest public We traded Home Builders sport in average sales price. North of you ready for this $365,000. He includes a chart with a stock symbols of all those big builders and they’re just not building entry level housing just non existent basically, it’s almost non existent in the market now. We have this kind of product. We have just a small amount of it in Baton Rouge, Louisiana, but we have a decent amount of it and a lot of you have been buying it so congratulations brand new homes, single family homes and townhomes in Atlanta. And you know, just check out our markets at Jason Hartman calm in the Properties section and frankly, as I’ve said before, you know, you can browse there but you’re not going to see all the inventory you got to be working with our investment counselors, because the properties they just go too fast. And our investment counselors you know, get on the email list. Subscribe. To the property cast on whatever podcast platform, you’re using Jason Hartman’s property cast, and you’ll be emailed these performance in PDF format or not emailed, they’ll come in your RSS feed as a podcast. And I think you’ll you’ll really get the line on the newest hottest inventory that way. But be sure you’re working with one of our investment counselors, because they have their ear to the ground. They really know what’s coming and and what’s available. And this happens on a daily If not, like an hourly basis. That’s how how quick you need to be for really, really good inventory. The article concludes saying our builder clients are pivoting to address the mismatch of demand and supply the mismatch of demand and supply of new lower priced homes. According to our recent survey 55% of the entry level builders. In other words, the builders building the affordable stuff are building on smaller lots because they can cut their costs down cramming these houses together, right cluster homes, and 45% are building smaller homes and 39% are using less costly materials or they’re building, you know, with a cheaper construction materials, and 33% of them are moving farther away from the job centers. That is a good start. But we have a long way to go to get back to 1 million single family homes per year. So there you have it, folks, congratulations. I hope that makes your day. It is truly a great opportunity to be owning these inexpensive, affordable entry level properties, of course, for long term buy and hold rental properties, but eventually you may sell them and there’s this massive amount of demand for those low cost properties. So congratulations. You’re doing great, keep it up, buy more of them, add to your portfolio and You will be a very wealthy real estate investor. So, good news for you. Okay, Jason hartman.com slash properties for the properties. Jason Hartman live.com. For tickets to our upcoming profits in paradise event, we’re on early bird level two, the tickets are still very cheap. So take advantage of that. We’ll look forward to seeing you in Orlando. And remember, we have a property tour along with this event, which is the first time we’ve ever done it that way. So if you want to come early on Friday, you can tour actual properties and snag some up before the event even starts. early bird gets the worm right. Check that out Jason Hartman live.com. And let’s get to our guest as we talked about how wealth Can’t wait, and Miracle Morning millionaires. It’s my pleasure to welcome David Osborne. He’s co founder and chairman of magnify capital and best selling author of a few books including Wealth can’t wait. Avoid the seven wealth traps. David, how you doing? It’s great to be with you, Jason, good to have you forgive me, I’m losing my voice here a bit but can’t wait to dive in. And this book took you a long time to write. And
David Osborn 15:13
you know, the hardest thing I’ve ever done, man, everyone has this idea like, Hey, I’m gonna write a book. And it took me seven years to write it was way harder than I thought it would be. And I think a lot of people find that I was stubborn. I didn’t want to use a ghost writer. I wanted to write it myself. And that’s why it took seven years. Sure, sure.
Jason Hartman 15:28
Well, tell us a little bit about some of the principles in those wealth traps.
David Osborn 15:33
Yeah, sure. So look, I mean, building wealth is mainly a choice. That’s what we start off the premise with the book. It’s just a choice. Like if you decide to be skinny or healthy. It’s a choice also, right. So once you’ve made the choice, then you have to follow through with the actions but if you don’t make the choice, it’s irrelevant. And it’s okay not to be wealthy if you don’t want to be but if you wanted to be skinny, what would you do? Well, everyone knows what to do. You would eat vegetables, you would exercise, you wouldn’t eat too much sugar, you wouldn’t drink too much alcohol, right. So that’s kind of the process. Make sure you get some cardiovascular Lifting weights. Wealth is the same thing, right? And we start with a basic concepts and then we accelerate pretty fast into more sophisticated concepts. But the first section of the book is avoid the wealth trap, one of the wealth traps, for instance, the cushy job trap, you got a good job, it’s paying you 150 280, whatever is comfortable for you a year. And you’re like, yeah, I’ve got this business idea. Maybe I’ll start it someday, but just not today. And that’s called the cushy job trap. The other trap that I think people should be very aware of, and there’s seven in the book, but I don’t like at all is the toxic people trap, right? So if you have people around you, and no one said that your high school friends have to be your friends for life. They could be but if your goal is to elevate your life and your friends are like, Oh, that’s impossible. You could never get that done. Let’s go have a drink again. Look at pretty women or something. Well, that’s, you know, a friendship that’s probably not going to financial freedom or financial success, if that’s the mainstay of the friendship, so then it’s okay to move along from people. Your high school friends are not necessarily your destiny. And so that’s the toxic relationship trap that people fall into as well. Too small Yeah. From there it’s like live below your means save some money cuz you know capitalism is all about capital, you have to save up some capital you either have to use your capital or somebody else’s capital and then we get into more sophisticated concepts like other people’s money people always think, well I don’t have any money How can I do a deal but there’s always money for deals. So if you learn how to find deals that are great for people, you’ll always find the capital and so you know, there’s just this whole process we go through in the book of taking you from sort of day one beginner don’t know anything, which mostly is about mindset. People are always like, oh, mindset that’s so airy fairy, but the reality is, it’s not mentally prepared to be wealthy, you won’t be wealthy because money has problems too. There’s two kinds of problems, not enough money and too much money. I don’t think that having a lot of money is suddenly easy. When you buy lottery winners blow it all or football player. I couldn’t
Jason Hartman 17:43
agree more. You know, I grew up without money. Now I have lots of it. And man, I don’t know. It’s not all it’s, I thought it would be I’ll put it down.
David Osborn 17:52
You know, it’s a lot of work. It’s a lot of work. Force, but it’s a lot of management. A lot of oversight, a lot of legal, a lot of complex So you got to be prepared for that. And you’re not going to find that if you’re spending your time watching every football game that ever comes out every weekend and drink a beer every night, right? So, and then it’s learning how to find the deals to analyze the deals, reading the books, tuning into the information. And then it’s learning how to build a killer team, and then how to leverage your success to others. The other thing about building wealth, it’s interesting is all the skills that get you to the entry level, the doorway of wealth or the beginning levels, hinder you to get to higher levels. And what I mean by that is the way you’ll start off your wealth building journey through income producing properties, which I know is your mantra, and I love it because I think Real Estate’s the greatest place in the world for the everyday man to build wealth. But when you get one property what how do you do a good deal or you find it you do a lot of work, you analyze it, maybe put sweat equity into it by doing the repairs yourself, you manage it yourself? You do all these frugal things that help you have a killer deal? Well, that behavior will enable you get to 10 or 15 properties, it won’t get you to 100. So once you get to a certain level of success, maybe five or six or seven, you have to learn to leverage other people’s skills so Hire out the management, hire out the repair. So you can go to do what you do best, which is seeking those great deals and putting them into your portfolio. You know, it’s interesting journey building wealth. It’s super fun because you have to constantly sharpen the saw. But those are kind of some of the basics that books talks about.
Jason Hartman 19:14
Yeah, absolutely. That’s good stuff. So let’s dive deeper into some of the more sophisticated techniques. And well, before we do that, I wanted to mention you’re so right about the mindset. Part of it. You know, my mentors years ago, at age 17. Were Jim Rome, Denis waitley, Earl Nightingale and Zig Ziglar. And it seems like nowadays, there’s just not enough on the mindset, the philosophy. Nowadays, everything’s seems like how to write so I’m glad that you address that mindset stuff because it’s not airy fairy. It’s critical to have some principles to have a philosophy. Absolutely right.
David Osborn 19:50
Yeah. And you mentioned Jim Rowan, who’s my absolute all time favorite. For 49 bucks you can buy online like his magnificent line life or whatever. It’s ridiculously cheap, but if you just Listen to that, like I did probably 20 times, you’ll have the principles of success embedded in you. And I think the reason Jason, the wealthy keep getting wealthier is once you’ve been bedded those success principles in you, and people know them. There’s a sound trite, but it’s like you learn or you win. So if you don’t win, you learn so therefore, you’re always winning, right things like this becomes second nature to you when you embed it in your soul. And then the other person who has a loss and then complains about it falls into victim mode, maybe justifiably so maybe they were treated poorly, but they end up stuck for two years in this rut of self pity. Whereas if you’ve learned what Jim would say, you know, you live or you learn, so you got kicked in the teeth, you figure out why you maybe you picked the wrong partner, maybe you put yourself in the wrong situation. There’s always something you did that you can own that. So you drop it, you give yourself a five minute pity party and then you move on and you go back to work and you start winning more, which is why I think the wealth inequality which I think is a bad thing happens so extremely in life is when I hang around with people like yourself that get it and know how to go after it. They just keep winning and then it becomes second nature to them. And it’s not like a sports career. We got eight years if you really get good at wealth building, you’ve got a 30 4050 year career. So of course, the disparities get bigger and bigger.
Jason Hartman 21:07
Right, right. I think to a lot of the dreamers, it looks, I guess it looks easy on the outside. But believe me, there are a million pieces of, you know, shrapnel along the way. I mean, it’s just not even double the number of hits that you take, but you just got to keep going, like, what else is there to do? What else? Well, I mean, like,
David Osborn 21:31
you know what, life’s gonna be painful anyway. whether you win or lose. If you lose, you know, sitting around feeling bad for yourself and doing nothing all day that hurts to get overweight because you drink too much or don’t look after your body and that also is painful. So life’s gonna have pain. The thing about successes, yes, people think it looks easy and effortless, but actually, you get kicked hard in the teeth multiple times and you’re sitting there picking up your teeth trying to figure out how to put it back in your mouth and going back to work. But again, like I said, I don’t think life’s gonna be hard. That’s almost a gift. So why not reinforce yourself and strengthen yourself and learn from it and then it becomes addictively fun to keep learning and say, you know, somebody drops a big lawsuit on you that you know, is frivolous, you’re like, wow, can I just keep going through my life and ignore this frivolous lawsuit and be happy? And the answer becomes Yes, on the fourth or fifth one on the first or second one, it you’ll obsess about it, you’ll stay up late, you won’t sleep. And then eventually you realize part of the cost of doing business of being successful is somebody’s going to try to take an unfair advantage of you.
Jason Hartman 22:28
You know, you, I always say, you spend the first half of your career creating wealth, and you spend, you spend the second half protecting it, because as soon as you get big, you become a target. And they’re all these greedy people, sleazy people that will just start attacking your wealth. And you’ve got to learn to deal with that. And a buddy of mine was telling me sometime last year, he’s a really successful guy. He’s just done incredible things in his career. And he’s now about 52 years old, I think. He was saying, you know, I remember I had this frivolous lawsuit years ago, I could have easily settled it and he said, but I wanted to have the experience of litigating it to see what it was like so I would know when a real lawsuit that mattered came along and he said I spent a bunch of money on it but I learned so much i thought you know, that’s a very interesting philosophy you have but I can see the point
David Osborn 23:26
you know, I did a similar thing I fought one tooth and nail all the way to the end and I’m still willing to fight it but you know, the main thing I learned from fighting a visit there’s a faster way out that’s probably the better way to go. But I have fought some tooth and nail I’ve bought some for years and years that have just languished and lingered and then eventually the people get wisdom and but fighting a lawsuit is a beating. It’s just a whole nother career with no upside really, right right now.
Jason Hartman 23:48
It isn’t, but I will tell you one thing about the litigation paradigm that’s interesting, is that people always you know, when they were in there in a dispute, they always complain. Oh, it’s so expensive. The lawyers are so good. spensive and you know, that’s all true, right? But what few people look at is that when you litigate something you actually get there are three parties, right? There are the two adversaries. And then there’s the court system. So all that infrastructure, and you get those two other parties for free, you don’t pay for them, assuming you don’t lose and have to pay their legal fees or something, right. But you get them for free. So you get all of that learning of all of that effort of all three parties, and you’re only paying for one third. It’s sort of not as bad as people think.
David Osborn 24:34
No, I agree. I mean, I’m, I have a real estate company that has 5000 agents, were probably in 10 to 15 lawsuits at any moment in time from the transactions. And so you’re right, it isn’t as bad as the first ones are tough. But later on, it becomes I mean, I remember reading an article about Richard Branson, he said, I’m in 300 lawsuits at any moment in time. Yeah. I’m like, Oh, well, that’s you just have to learn to live with it. And it is interesting. It’s just another part of the business. Right. I had another interesting experience one time where I was being sued. And finally we got definitely That were 100 grand ended each I’m sure they were I know I was defense legal fees, like 18 months, we’re finally in the deposition. I read theirs and I’m like, you know, it’s not that far off what happened The only difference is between where they are and where I am, is that I thought they were failing. So I took over the business because they were failing and we were losing money. And in their mind, they weren’t failing, they were just about to turn a corner. So in reality, like I’m thinking, like, how would an impartial judge look at this? They say, Well, I see both sides. That’s exactly what they would see. So I immediately settled in that case I was like, you know what this is when I was younger and more hot headed and more stubborn right now the frivolous ones I’m happy to fight just all the way to the all the way to the end if I have to. So you know, that one in particular, you begin to realize there’s a lot of nuances in life just because you think you’re right doesn’t mean you always are
Jason Hartman 25:43
Right, right. I have this friend who had a real estate fund while I’m and I’m still friends with him. And I remember he was looking for other places to live and move out of the country because he got sued one time and he thought, you know, he was on this big rant about, oh, the US is so ridiculous. It’s so litigious. You know, No, it’s just not fair, blah, blah, blah. And he’s having this whole conversation that he literally, he’s going to uproot his wife and kid and move them out of the country, just simply because he’s credited with the litigation. I mean, it’s just the cost of doing business, get over it exactly do the opposite. A lot of ways.
David Osborn 26:18
Yeah, there’s ways to protect your wealth, and then you have to be willing to if you’re going to engage, you have to be willing to fight the battles. It’s just part of the deal.
Jason Hartman 26:25
It’s just part of the deal. Yeah, it’s no big deal. All right. So any of the more sophisticated components that you want to dimension,
David Osborn 26:32
you know, really the importance of hiring great people and figuring out we go into the book, how to be in business with great people how to not be in the business with the people that are going to sue you how to find the because winners tend to keep winning. So if you can surround yourself with winners, if you can be in business with winners, if you can hire winners, then we go into some of the more complex strategies on that and one of them is that just because you like someone doesn’t mean you should hire them. Most people sort of just hire based on it seems like a nice guy I’ll hire and we teach a more deeper process. sort of really uncovering their history of their career. Because if you if you’re hiring somebody and you really like, and in the interview, they’re like, my last boss was a jerk. And then my boss before that was a jerk, you can guarantee that the jerk Yeah, right the way it happens. Yeah, right. So people’s habits repeat themselves. Right, right. That’s one of the keys. And there’s any other ones, you know, like you’ve got the only way you find deals is to look at 1000. You know, 100 deals to find one. We talked about the opportunity matrix in the book. And the opportunity matrix is every deal has people and the deal involved and you start with the people and if you don’t like the people, if they’re not ethical, it doesn’t matter how great the deal is. You just don’t do it. You walk away, the people are far more important than the opportunity. I’d rather do a decent opportunity with great people than an incredible opportunity with bad
Jason Hartman 27:42
deceit they are I’m so glad you said that. And I say that all the time. We’d rather recommend our clients invest in a big market, where we have an A team of trustworthy people, then an AR kit with a B team because the people will always damage your Plans more than the marketplace will?
David Osborn 28:02
That’s correct. That’s wise. Very, very interesting. And then to look for the downside, people tend to get really excited. We call it Tokyo, and they really only measure the upside. So, you know, that’s why all performers are Bs, right? So somebody will say to you, this is what’s going to happen, it’s going to be like, this is going to be a maintenance, you is a good investor need to be looking for what could go wrong. What’s the worst thing that can happen here, and if the worst thing that can happen is you get your money back, that’s not such a bad thing. But if the worst thing is you could go to zero, that is a bad thing, because Warren Buffett’s rule number one is to protect the capital. And rule number two is your number one. So you want to try to never lose capital. Real Estate gives you that opportunity. But one thing I see people making the mistake of over and over again, is they get too optimistic and too full of hope about the deals they see. And they don’t do enough due diligence into the potential downside.
Jason Hartman 28:46
Yeah, absolutely. So when you learn that downside, I mean, I like to say expect the best prepare for the worst. But what do you do with that learning? Right? Say you’re looking at this deal and it looks great with me. attitude, right. But there is some real downside risk. How do you decide what you should do? Do you move forward or not?
David Osborn 29:09
Well, I’m a cynical optimist. You know, that’s another way of looking at I try to be a cynical optimist. In other words, I’m happy and I’m looking for the positive, but I’m trying to tear down. What could go wrong. For me, it’s sort of if we’re 50% levered, what’s the likelihood that I would lose 100% of my capital, and if it’s low, and maybe I could lose 30% worst case then I’m more interested in a deal. Let’s say that has a 15% annual upside Well, I’m more interested in that than a deal that has 150% annual upside but has the potential of losing 100% of my capital because what I find is I’ve got further into this, the longer I’ve been in business that its base hits really are the way to go and trying to hit a home run is actually usually a mistake because you can hit two home runs and then have one complete loss and it erases the gain of both of those home runs. So really just go I want to be the intro Suzuki of real estate and just get rack up the base hits for 30 You’re 40 or 50 years and you’ll never see me having to worry about money again. So I think that’s really it. If it looks too good to be true, it almost always is almost every deal I’ve gone into with a great enthusiasm,
Jason Hartman 30:10
excitement about how a 10 X or five x my money has either turned into a zero or at best, maybe a two or three x and there’s usually nine zeros for every one, two or three. So you just don’t buy the home. It’s so sad that you see so many people chasing that incredible deal, you know, waiting for their ship to come in. And in the meantime, they could have had you know, six base hits, right six base hits. Two of your players came in and scored right they came past home. So yeah, absolutely rack up the base hits very good philosophy. Give us your outlook on the real estate market if you would and just talk about income property for a moment and then I want to ask you about just morning routines Miracle Morning millionaires your other book quickly for you go.
David Osborn 30:54
I think the market is now you have to be more aware like anything you bought in 1230 1415 you want on that was like it was the best time of my life for buying real estate. But we didn’t
Jason Hartman 31:05
know it then just so you know.
David Osborn 31:07
No no no no, I bought a lot but it was terrifying I bought a ton but I started in 11 I dipped my toe in actually started in nine when a little bit heavier and 10 and then at the end of 11 I was like man, we need to buy everything we possibly can however, I agree with you It was terrifying. I make it sound confident that but I was scared you know, but we were getting 15% cash on cash. It was crazy. buying homes for 50 they rented for 800 bucks a month buying debt on assets that was severely undervalued at the time so yes, you’re right it was terrifying one should never forget the feeling you have of buying
Jason Hartman 31:41
you That’s why you can’t time the market because you never know where the top or the bottom is. I mean it was scary by that and but it turned out to be incredible, of course,
David Osborn 31:49
but there is a time to accelerate and decelerate. So now is I think it’s time to decelerate you should still be doing deals there are always deals out there you should just be looking at 10 to maybe offer on one versus In 2013, looking at 10 to offer on five, do you think that there’s still a housing shortage though? We were profiling experts that think that there’s about a three to 600,000 unit per year housing shortage? I absolutely think there is especially at the lower end, I mean, there’s just no low income housing. And that’s where I live. I’m a C class guy, so I’m buying 120 hundred and $30,000 homes. And I think there’s a huge shortage of those kinds of homes in the US now remembering that the US is not one big equity, right, it’s 1000 little equities. And and so every market is slightly different. You got to know your markets know your neighborhoods even but I still think the lower end homes have a long way to run and with rates as low as they are, you can buy you know, an 8% yielding return an eight cap home and put you know, 5% money on it and go to sleep on it and 30 years, the tenant will pay the property off for you and you’ll just have another good basis. So I think there’s plenty of deals out there. I just think you have to be more selective, more careful, be fully educated and informed and play the game. More cautiously. It’s pretty amazing. It really is. And you know, like Warren Buffett says don’t expect the deal to be good the day you buy it. They almost always are good in the rearview mirror. Just buy good quality stuff that makes sense. That’s not speculative. and hang on to it and you’ll be fine. Listen to your podcast, go to y’all seminars, just get educated. There’s so much information out there, hang out with the right people. Yeah, there’s always deals you got to be playing or else you’ll just get with it up. But you don’t have to be aggressive right now. So I think we’re bullish in the long run. America is going to be the greatest, you know, investment opportunity for real estate always today. The best time was yesterday. The second best time is today. Yeah,
Jason Hartman 33:35
absolutely. I love that. Okay, so tell us quickly about some morning habits. Because I this morning routine is a big topic of conversation the last few years we had al l rod on the show before, you know you wrote Miracle Morning millionaires.
David Osborn 33:49
Yeah, so Kyle and I are good, but he lives 200 yards from my house. My kids and his kids are best buds. But how when I met him I was already a morning guy, but I wasn’t I didn’t have the six steps. So the reason I agreed to write Miracle Morning millionaires with him was he’s already written the Miracle Morning which is a great way for people that haven’t started before to shake off the rust and start living a life of abundance and choosing their destiny. I just tweaked it a little bit for what it’s like to be a multi millionaire so instead of just doing the visualization he described what I visualize is my appointments going well my staff working well I’ll just do this like one hour morning routine where I exercise I read everything I peloton before our call here, I journal I give myself some affirmations I’m not great at affirmations, I’m just use it like I’m going to be present to my kids today. I’m going to be a great husband today. I’m going to be attentive to my team today. The difference with the millionaire piece is really I think the difference between successful people and unsuccessful people as successful people are always purposeful they always have a purpose. And so it’s to think about your purpose in the morning right visualize where you see yourself going. Because in life we tend to get what we expect. And if you don’t expect anything, then you get what you get. You don’t get to throw a fit. Using the power of the morning to set your day. If you win the morning, you win the Day, I’d already been living that. But how had such a beautiful complete simple system that I integrated my life into and my favorite deal is to get up at 5am, head to my library and sit there and for one hour just go through these six steps. And if I get them done while they exercise, I have to go to my exercise room. But if I get them done my day is always better than the days I don’t. So today’s gonna be an amazing day because it’s what eight o’clock here at nine o’clock and I’ve already just done so much to set up my day for success, right?
Jason Hartman 35:26
There’s no question if you don’t do anything else. Just go to bed early and get up early. There’s a reason for that old saying Early to bed early to rise, makes a person Healthy, Wealthy and Wise. It is so true. You just gotta you gotta beat the world and getting up and just then you feel like you own the day, right?
David Osborn 35:41
You only have the morning really to be productive. You know, by 11 o’clock the world starts coming back at you whatever you’ve created that day, the rest of its just reactionary mode. So and I used to be the opposite. I used to think working late was smart and I used to sleep later. I was 100% wrong. I am so much more productive now between the hours of 5am and 7am that I am was when I was staying up till midnight.
Jason Hartman 36:02
I agree I love getting up early. David give out your website.
David Osborn 36:04
David Osborne calm if you just go to www David Osborne calm to find all about me there or go by wealth Can’t wait at Amazon. David, thanks for joining us. Great to be with you.
Jason Hartman 36:16
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