Jason Hartman

You can get an IRR on a property exceeding 10, 12% annually.

with no to very little cash flow in the deal.

Because you get leverage and you sell the property eventually.

No, I did not say that.

If you will listen for a moment, instead of jumping the gun, there's more.

Please go ahead.

There's appreciation.

There's tax benefits.

There's depreciation as part of the tax benefit.

there is cash flow to the property and i'm saying appreciation over the long term the people that got hurt in the crash were idiots that were speculating on uh high-rise condos or high-flying properties in cyclical markets not linear markets that we recommend they were they were looking at the sexy markets they were buying stuff in california south florida

expensive markets in the Northeast.

And they were buying them because they didn't make sense the day they buy them.

They didn't follow my 10 commandments of successful investing, which commandment number five is thou shall not gamble.

You buy a property that makes sense from a cashflow perspective.

Now, I know what you're gonna do.

You're gonna jump right on me and you're gonna say, well, Jason, it doesn't have enough cashflow.

cashflow as a gross number, meaning 1% of the value per month, okay?

And then they hold those properties for the long-term and they look at appreciation as the icing on the cake, moderate appreciation at 5% to 6% per year that has happened over the course of many, many decades.

And they also get a return from something very few investors recognize at all that I call inflation-induced debt destruction, where inflation over time, and I admit that it's moderate now, you're probably going to jump on that and say, well, Jason, there's hardly any inflation.

So it is complex to have them off the top of my head.