Jason Hartman

Right. It's a mouthful. Say it 10 times fast. I can't. So basically what this is, Justin, is it's the hidden wealth creator with real estate because most people think they're getting rich in real estate because the property appreciates. I bought it for this. I sold it for that. Or now it's worth that. Even if I haven't sold it, I refinanced it, pulled money out.

Right. It's a mouthful. Say it 10 times fast. I can't. So basically what this is, Justin, is it's the hidden wealth creator with real estate because most people think they're getting rich in real estate because the property appreciates. I bought it for this. I sold it for that. Or now it's worth that. Even if I haven't sold it, I refinanced it, pulled money out.

But what's happening in the background is really important. Inflation, well, let's just back up a minute. You know, to understand what's going on in terms of money and the value, we need to distinguish between price and value and real and nominal. So the real value of something, that's what you can trade it for, right? The nominal value of something is the name of it.

But what's happening in the background is really important. Inflation, well, let's just back up a minute. You know, to understand what's going on in terms of money and the value, we need to distinguish between price and value and real and nominal. So the real value of something, that's what you can trade it for, right? The nominal value of something is the name of it.

So if I held up a $100 bill and said, Justin, what's that? You'd say, $100 bill. Well, you'd say that today, but would you have said that in 1990, right? Yes, it had the same name, but the value was different, right? It was worth much more back then. A lot more.

So if I held up a $100 bill and said, Justin, what's that? You'd say, $100 bill. Well, you'd say that today, but would you have said that in 1990, right? Yes, it had the same name, but the value was different, right? It was worth much more back then. A lot more.

And so inflation that is the ever-present thing destroys the value of our savings, our stocks, our bonds, these investments that we own, even our equity in real estate.

And so inflation that is the ever-present thing destroys the value of our savings, our stocks, our bonds, these investments that we own, even our equity in real estate.

But it thankfully also destroys the value of debt.

But it thankfully also destroys the value of debt.

So debt is my favorite four-letter word for this reason. Because if you have a mortgage on a property, and hopefully you're leveraging your properties always. Because that mortgage is an asset. And now, with what we've got going on, where so many people have these cheap mortgages that they got during the COVID era, now everybody realizes the mortgage is an asset. In fact...

So debt is my favorite four-letter word for this reason. Because if you have a mortgage on a property, and hopefully you're leveraging your properties always. Because that mortgage is an asset. And now, with what we've got going on, where so many people have these cheap mortgages that they got during the COVID era, now everybody realizes the mortgage is an asset. In fact...

Before COVID, I couldn't convince people of this very easily. They really had to buy into what I was saying. But now people have these, I mean, 25% of the country has a mortgage adder below 3%. 25% of the country? Who own homes.

Before COVID, I couldn't convince people of this very easily. They really had to buy into what I was saying. But now people have these, I mean, 25% of the country has a mortgage adder below 3%. 25% of the country? Who own homes.

Or investment properties. Who own any property has a mortgage adder below 3%. 65% of the country has a mortgage adder below 4%. It's insane.

Or investment properties. Who own any property has a mortgage adder below 3%. 65% of the country has a mortgage adder below 4%. It's insane.

So you know what they realized? they realize their mortgage is not a liability. It's an asset.

So you know what they realized? they realize their mortgage is not a liability. It's an asset.

Okay. Mostly the traditional idea is, okay, the house is the asset and the mortgage is the liability. If you had a balance sheet, that's the way you draw that. That's right. Okay. But a cheap mortgage is a mega huge asset. And now we have proof because we have what's called the lock-in effect.

Okay. Mostly the traditional idea is, okay, the house is the asset and the mortgage is the liability. If you had a balance sheet, that's the way you draw that. That's right. Okay. But a cheap mortgage is a mega huge asset. And now we have proof because we have what's called the lock-in effect.