Jason Hartman speaks at IMN single family home investing conference in Scottsdale, Arizona. Flip or buy and hold?

1. CREATING WEALTH
Jason Hartman, President
Platinum Properties Investor Network

2. There’s more to returns than just returns
Taxes and Scalability both matter
Flipping creates a high tax bill, and is very
hard to efficiently scale into a large portfolio

3. Good
Scalability
Tax
Efficient
Bad
Scalability
Tax
Inefficient
Scalability Taxes
Good
Bad

4. Taxes Matter
Tax Efficient Investments
Preserve Returns

5. Scalability Matters for Portfolio Returns
As portfolio value grows, scalability
becomes more important

6. $0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
$110
$120
$130
$140
$150
$160
$170
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Thousands
$158,673
$17,397
Average Single Family Home Value
$10,000 Invested for 10 Years
S&P 500 vs. Real Estate
$10,000 Invested in S&P 500

7. Getting Excited About Monetary Policy
 To understand inflation, we need to distinguish between Real and Nominal and
between Price and Value.
 Inflation is the insidious Hidden Tax that destroys purchasing power.
 Inflation destroys the value of your Savings, Stocks, Bonds, Equity, and
thankfully, the value of Debt.
 Inflation is the most powerful method of Wealth redistribution.
 Inflation redistributes wealth from Lenders to Borrowers and from Old to Young.

8. $0
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$20
$30
$40
$50
$60
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$80
$90
$100
$110
$120
$130
$140
$150
$160
$170
1968 1973 1978 1983 1988 1993 1998 2003
Thousands
Source: National Association Of Realtors
National Median Sales Price

9. $0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
$110
$120
$130
$140
$150
$160
$170
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Thousands
$158,673
$17,397
Average Single Family Home Value
$10,000 Invested for 10 Years
S&P 500 vs. Real Estate
$10,000 Invested in S&P 500

12. Asset Deflation – Monetary Inflation
Land
Improvement Rent
Mortgage
Payment & Balance
Overall

13. Don’t miss out of some of the lowest rates in a lifetime!

14. $0
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$20
$30
$40
$50
$60
$70
$80
$90
$100
$110
$120
$130
$140
$150
$160
$170
1968 1973 1978 1983 1988 1993 1998 2003
Thousands
Source: National Association Of Realtors
National Median Sales Price

15. 6 Ways to Get Out of the Mess!
DEFAULT
All the government promises
that they cannot keep -
(medicare, social security, etc.)
Will they will break the promises?
Not likely as it is too harsh and
politically unpopular.
RAISE TAXES
They cannot raise taxes
enough to pay for the problem
YARD SALE
USA starts to sell off assets to
raise money. Proposed sale of
ports to Dubai, BLM land, military
equipment, toll roads, etc.

16. 6 Ways to Get Out of the Mess!
STEAL
Use American military machine or
more covert methods with
“economic hit men”
TECHNOLOGICAL INNOVATION
Hopeful areas of progress are
energy, biotech and nanotech
INFLATE
Most likely - significant inflation
to keep all the promises in
nominal dollars while worthless
in real dollars