CREATING WEALTHJason Hartman, President

Platinum Properties Investor Network

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

Good Scalabili

tyTax

Efficient

Bad Scalabili

ty

Tax Inefficie

nt

Scalability Taxes

Good

Bad

Taxes Matter

Tax Efficient Investments Preserve

Returns

Scalability Matters for Portfolio Returns

As portfolio value grows, scalability becomes more

important

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002$0$10,000$20,000$30,000$40,000$50,000$60,000$70,000$80,000$90,000

$100,000$110,000$120,000$130,000$140,000$150,000$160,000$170,000

$158,673

$17,397

Average Single Family Home Value

$10,000 Invested for 10 YearsS&P 500 vs. Real Estate

$10,000 Invested in S&P 500

Residential real

estate out

performed the S&P

by 793% not

including tax

benefits!

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.

1968 1973 1978 1983 1988 1993 1998 2003$0$10$20$30$40$50$60$70$80$90

$100$110$120$130$140$150$160$170

Thou

sand

s

Source: National Association Of Realtors

National Median Sales Price

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002$0$10,000$20,000$30,000$40,000$50,000$60,000$70,000$80,000$90,000

$100,000$110,000$120,000$130,000$140,000$150,000$160,000$170,000

$158,673

$17,397

Average Single Family Home Value

$10,000 Invested for 10 YearsS&P 500 vs. Real Estate

$10,000 Invested in S&P 500

Asset Deflation – Monetary Inflation

Land

Improvement Rent

MortgagePayment & Balance

Overall

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

1968 1973 1978 1983 1988 1993 1998 2003$0$10$20$30$40$50$60$70$80$90

$100$110$120$130$140$150$160$170

Thou

sand

s

Source: National Association Of Realtors

National Median Sales Price

6 Ways to Get Out of the Mess!

DEFAULTAll 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 TAXESThey cannot raise taxes enough to pay for the

problem

YARD SALEUSA starts to sell off assets to raise money. Proposed sale of

ports to Dubai, BLM land, military equipment, toll roads,

etc.

6 Ways to Get Out of the Mess!

STEALUse American military machine or more covert methods with

“economic hit men”

TECHNOLOGICAL INNOVATION

Hopeful areas of progress are energy, biotech and nanotech

INFLATEMost likely - significant inflation to keep all the

promises in nominal dollars while worthless in real

dollars