1. The Hartman Risk Evaluator
By Jason Hartman

2. Staying Power: The Key To Successful Investing
• Who knows someone who has made money in real estate?
• Lost money? Why?
• Investing is not about speculation (aka gambling) or a get-rich-
quick scheme
• Investing is a legitimate process of creating value
• Understand that anything without income / rent is NOT an
investment; but rather a speculation
• Managing cash flow is key - Rule of thumb - Jason’s “RV Ratio™”
– Rent ÷ Value = “RV Ratio™”
– $1,800 ÷ $600,000 = .3%

3. The Hartman Risk Evaluator ™
Improvement Value =
Cost to Build + Builders
Profit
Improvement
Value Factors Increasing Improvement Value
•Environmentalism / building restrictions
•Industrialization of developing countries
•Raw materials cost
• 2004 Inflation 3.3%
Land • Steel and iron prices surged 34%, lumber
Value was up nearly 17% and prices of gypsum, or
wallboard, were up 20%
•Labor and energy costs

5. $1,300,000
100%
$815,000
100%
$ _______ Improvement
Value
___%
$156,000 Improvement
Value
19% Risk
Area
$660,000 $ _______
___%
81% Land
Land
Value
Value

6. The Hartman Risk Evaluator™
Improvement Value =
Cost to Build + Builders
Improvement
Value Profit
Risk Area
Land
Value

7. The Hartman Risk Evaluator™
Our Recommendation – Have a “Floor”
Improvement Improvement Value =
Value Actual Replacement
Cost + Builders Profit Improvement
Value
Land
Value
Land
Value

8. Asset Deflation Monetary Inflation
Land Improvement Rent Mortgage Overall
Payment
Balance

9. Free Podcast
http://www.JasonHartman.com/podcast/ or on iTunes

10. A Long Term Relationship
The Jason Hartman Team Is Here To Help
Meet With Any Of Our Investment Counselors
For A Complimentary One-On-One Consultation

11. Financial
Self-Defense In Uncertain
Times
Get Your Free Copy At:
JasonHartman.com

12. “Don’t wait to buy real estate,
buy real estate then wait!”
- Robert Allen
www.JasonHartman.com