Summary: In this episode, we’re talking once again with super-smart investor, Jason Hartman. Our <a href="http://www.realestateinvestingmastery.com/087-why-you-should-refi-til-you-die-jason-hartman" target="_blank">previous podcast with Jason</a> was so good, and we had such great feedback about it that we decided to have Jason back for more terrific REI info. Today, we’re talking about risk and how crucial it is to evaluate risk. Why? Because risk affects your portfolio, your investments and your future. So you absolutely have to manage your risk well, and Jason talks us through all of that. He also shares with us his personal investing philosophy, which he calls Packaged Commodities Investing. And, Jason touches appreciation; what influences improvement value versus land value; regression to replacement cost; and why high land value markets are very risky markets. If you thought our previous podcast with Jason was loaded with info, just wait til you hear this one. Jump in, folks… Listen and enjoy: Jason Hartman Interview Bonuses <a style="" href="https://my.leadpages.net/leadbox/14ff933f3f72a2%3A9446a4313/5833320160034816/" target="_blank">Download Tools</a> What's inside: 6:15 – Podcasts that Jason and Joe listen to 17:55 – Why risk is so important to consider in real estate investing today and what frustrates Jason about it 22:22 – Jason’s personal story about an REI property, and what influences improvement value 28:30 – Jason's investing philosophy, which he calls Packaged Commodities Investing 30:28 – Regression to replacement cost explained 37:30 – A question for listeners: When a property goes from $815,000 to $1.3 million, did improvement value increase or land value increase? 39:02 – Why high land value markets are very risky markets 40:45 – 3 ways to determine the LTI ratio (Land to Improvement) when looking at a market 48:39 – Evaluating risk when you're looking at just one market 50:14 – How to determine the RV ratio: Rent to Value ratio 54:30 – What Jason looks for when evaluating risk Mentioned in this episode: <a href="https://itunes.apple.com/us/podcast/creating-wealth-real-estate/id216013968?mt=2" target="_blank">The Creating Wealth Show</a> <a href="http://www.fwthinking.com/podcasts/" target="_blank">FW Thinking Podcast</a> <a href="http://www.dancarlin.com/" target="_blank">Dan Carlin</a> <a href="http://www.jasonhartman.com" target="_blank">Jason Hartman</a>’s Website Tweetables: [Tweet "Invest to make money. Don’t enter an investment based on appreciation, which is just icing on the cake"] [Tweet "If you're forced to sell a prop cause you didn't properly manage income & cash flow, that's a bad thing"] [Tweet "Regression to replacement cost: Value doesn't really increase; just returns to what it's actually worth"] Transcription: <a href="http://www.realestateinvestingmastery.com/wp-content/uploads/2014/12/REIM-88-Why-Its-So-Risky-NOT-to-Evaluate-and-Manage-Risk.pdf" target="_blank">Download episode transcript in PDF format here...</a> Joe: Welcome, this is the Real Estate Investing Mastery Podcast. Hey, everybody. Welcome again to Real Estate Investing Mastery. I'm really glad you're here. We got a follow-up interview with Jason Hartman. Our last interview with him was so good that we wanted to bring him again and talk about some really, really important topics related to real estate investors. Namely, looking at risk and looking at how does risk affect your portfolio, affect your investments, affect your future because it's really important that ...
