1896 FBF: Michael Thomsett - Real Estate Market Valuation and Analysis & The Landlord’s Financial Tool Kit

Creating Wealth Real Estate Investing with Jason Hartman

Today's Flashback Friday is from episode 732, published last September 28, 2016.

Jason’s guest, Michael Thomsett has over 35-years as an Accountant and is an investor in the most tax-favored asset class in the U.S., income properties. Mr. Thomsett has written over 90 books. His book, The Landlord’s Financial Toolkit will soon be printed as a second edition and re-named The Real Estate Investor’s Financial Toolkit. During today’s episode, he shares ten principles of real estate evaluations and unpacks each principle, so even those with a limited understanding of income property investing can follow along.

Key Takeaways:

Jason's editorial:

1:42 Segmenting the real estate market is rarely done properly.

3:41 Make it a goal to live in a no income tax state as a wealth creation strategy.

6:57 Information on the next Meet the Masters, Hartman Education Special Bundles and available properties.

Michael Thomsett Guest Interview:

12:12 The 9/10 Principles of Real Estate Evaluation.

13:20 Defining the Principles of Progression and Regression.

14:35 The Principle of Conformity is keeping the features of a property in line with others in the area.

15:37 The Principle of Substitution relates to the condition of the property.

16:11 The Principle of Change applies to the economy, demographics, employment, and other “fact of life” incidents.

17:12 The Evaluation Principle of anticipation is when expectations about future events affect the market value.

20:50 The Contribution Principle - If the improvement is worth more than the cost to make it.

22:12 Plottage or Growth Management should be consistent use of the surrounding lands.

24:52 Highest and Best Use - Real Estate evaluations are best when land is utilized in the best possible way.

26:39 The Competition Principle states an opportunity for a profitable investment leads to competition.

32:13 All the necessary tools for landlords are included in the second edition of Michael Thomsett’s book.

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