The Science of Flipping
[REPOST] Trump, Inflation, and the Future of Real Estate | Jason Hartman
Fri, 2 May 2025
In this episode, I sit down with economist and real estate expert Jason Hartman to discuss the impact of inflation on real estate investing and why debt can be an asset when leveraged correctly. They explore the Inflation-Induced Debt Destruction concept, explaining how rising prices actually reduce the real cost of debt over time, benefiting homeowners and investors. The conversation also covers the housing shortage, the Federal Reserveโs role in interest rates, and why real estate remains the best long-term wealth-building tool. Jason shares insights on tax benefits, leveraging properties, and why now is still a great time to invest despite market uncertainties. ย -- ย The #1 training and coaching system to launch, grow, and scale your investing business!ย ๐๐๐๐ซ๐งย ๐๐จ๐ซ๐:ย http://www.thescienceofflipping.com Turn cold real estate leads into engaged motivated sellers on auto-pilot using the power of A.I!ย ๐๐๐๐ซ๐งย ๐๐จ๐ซ๐:ย https://www.rocketly.ai/ Have a question? Ask me anything atย https://www.askjustin.ai/ ๐๐๐จ๐ฎ๐ญย ๐๐ฎ๐ฌ๐ญ๐ข๐ง: After investing in real estate for over 17 years and almost 3000 deals done, Justin has created a business that generates 7 figures in active income through wholesaling and fix and flipping as well as accumulating millions of dollars of rental properties including 5 apartment buildings, 50+ single family homes, and 1 storage facility Justins longevity in real estate is due to his ability to look around the corners, adapt to changing markets, perfecting Raising private capital, and focusing on lead generation which allows him to not just wholesale and fix & flip, but also accumulate wealth through long term holds. His success in real estate led him to start The Entrepreneur DNA podcast and The Science Of Flipping podcast and education company, where he has coached and mentored thousands of aspiring and active investors over the last decade. He is a nationally recognized speaker and is on a mission to educate as many people as possible on becoming a successful dynamic real estate investor. ๐พ๐๐๐ย ๐๐๐ย ๐ท๐๐๐ย ๐ฏ๐๐๐ย ๐ป๐ย ๐บ๐๐ย ๐จ๐๐๐๐ย ๐ฑ๐๐๐๐๐:ย โJustin is one of the best trainers in this space. He really gives everything to his tribe.โ โ Brent Daniels (TTP) โJustinโs ability to connect with people and help them understand what he is teaching, is unparallelledโ โ Kent Clothier (REWW) โWe have been in the trenches flipping homes in Phoenix for over a decade, he is one of the best to do it.โ โ Sean Terry (Flip2Freedom) Subscribe To Justin Colby:ย http://youtube.com/justincolby View All My Videos:ย https://www.youtube.com/c/JustinColby
Chapter 1: What are the current challenges in predicting the real estate market?
This year is the hardest year ever to predict the real estate market. Why? Because there are so many wild cards. Trump is the wild card of wild cards. The average construction worker now is almost 50 years old. In the past, you know, it was guys in their early 20s. Nowadays, these guys have aged. They're all 50. And there is a giant shortage of construction workers.
And that's going to make the supply demand equation out of balance. That's going to push the price of housing up. These tariffs will push the price up. There's a lot of upward pressure on prices and just general inflation.
Yeah. What is up? These signs are flipping. This one is going to be a good one. If you want to know what is in store for the market, because Trump's here. If you want to be able to see around the corner, if you want to listen to someone who's done well over 10,000 deals in his career, we have economist Jason Hartman here. What is up, dude?
Hey, Justin, it's good to be here.
So I'm going to come straight at what I think everyone's going to want to understand or your thoughts on it at least. Trump's in office. Everyone thinks he is our savior. Everyone thinks there's a lightning bolt that will come down. The economy is going to be saved. We're all going to be rich and we're going to print money. Let's hear your perspective of reality.
Yeah, that's funny. Well, I think half the people don't think he's the savior. Yes. Well, less than a little less than half. And yeah, it's a it's a really interesting time. I think Trump is going to be incredible. I think the second term is going to be phenomenal. I think he's matured. I think he knows what he's doing. He's an executive. He's a winner.
Unlike the previous administration, that was just a complete disaster. But it's not going to be without some pain. There will be some bumps in the road. These changes that Trump is making, I believe, are very good for the country long term. But, you know, if you take millions of illegals out of the market, you know, they rent from somebody. They work for somebody. Not all of them, of course.
But, you know, they are a cost to the government. And it costs generally about $8,000 per year per illegal in the country. So that is a weight on the government that's causing more inflation. But that inflation is delayed from the benefit. The benefit is immediate and the cost is delayed. Hmm.
And so that's why the Democrats and really the Republicans, too, over the years have not controlled the borders because the benefit to their time in office is obvious. But the cost comes later. So it's benefit now, pay later. And so Trump is, you know, he's going to make us take a little bit of medicine here with these deportations. But overall, I think that's, you know, it has to happen.
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Chapter 2: How does Trump influence the economy and real estate?
I've done north of 3,000. Yeah, but that's, you know, through my different companies over the years and all.
That's fine. I mean, the fact is you have that level of experience and business acumen. How does this play and what do we see a forecast? Let's just say a four year forecast, right? What do we, and I have my own opinion, I've vocalized it here on the episodes. What do you see kind of going over the four years, the first year, second year, third year, four years of Trump?
Well, you know, a big part of it is inflation. And how much inflation will we have? We're not going to have deflation in any significant way. There's just nothing to support that idea. You know, there may be little bouts of it or declining inflation. But overall, the macro trend is inflation. And with inflation, real estate benefits huge amounts. I mean, bigly, as Trump would say.
Yeah, yeah, yeah. Benefits bigly. And inflation is the hidden wealth crater for real estate investors. And we can talk about that more. But in terms of the forecast, you know, the last 21 years I've been forecasting the market, and my predictions have pretty much all come true except one major prediction, interest rates. I have been wrong about interest rates. Those are very hard to forecast.
Of course. Of course. I'm not going to try and do it anymore. Okay. Fair enough. But in terms of the market, this year is the hardest year ever to predict the real estate market. Why? Because there are so many wild cards. Trump is the wild card of wild cards. You know, the tariff issue, the construction workers, your prior guest was talking about that. That's right.
The average construction worker now is almost 50 years old. In the past, you know, it was guys in their early 20s, you know, framing houses. Nowadays, these guys have aged. They're all 50. And there is a giant shortage of construction workers. And that's going to make the supply-demand equation out of balance. That's going to push the price of housing up. These tariffs will push the price up.
There's a lot of upward pressure on prices and just general inflation and housing shortage. Right now, we have less than 700,000 homes on the market in the United States.
That is such a small number.
It's terrible. Yeah. There is a massive housing shortage. We should have about double to be just normal.
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