Jason Hartman brings us a Flash Back Friday episode originally published in February 2018 as episode 963. He discusses a disease infecting millions of people. Even with a large number of infected people there are very few addressing it. What is the disease? The entitlement disease. He gives different symptoms and how we should be acting as a society. Later on the show, he hosts Jeff Cronrod, founder of the American Apartment Owner Association & founder of Rent Recovery Service. They talk about a new program called Lease Guarantee. The two also discuss why landlords should be more aggressive towards non-paying tenants.
Jason Hartman 0:00
Welcome to this week’s edition of flashback Friday, your opportunity to get some good review by listening to episodes from the past that Jason is hand picked to help you today in the present, and propel you into the future. Enjoy.
Welcome to the creating wealth show with Jason Hartman. You’re about to learn a new slant on investing some exciting techniques and fresh new approaches to the world’s most historically proven asset class that will enable you to create more wealth and freedom than you ever thought possible. Jason is a genuine self made multi millionaire who’s actually been there and done it. He’s a successful investor, lender, developer and entrepreneur who’s owned properties in 11 states had hundreds of tenants and been involved in thousands of real estate transactions. This program will help you follow in Jason’s footsteps on the road to your financial independence day. You really can do it on now. Here’s your host Jason Hartman with the complete solution for real estate investors.
Jason Hartman 1:06
Welcome to the creating wealth show, episode number 963 963. This is your host, Jason Hartman. Thank you so much for joining me today. Today we’re going to talk about tenant screening, rent collection and lease guarantees. Yes, lease guarantees. We’ll talk a little bit about that. I think it’ll be interesting for you. We’ve got Jeff Kron rod, he’s been on the show before, several years ago, actually. And he’s with the American apartment Owners Association. So we’ll dive into that in just a moment. But first, I want to remind you to come join us in San Jose on March 3, Silicon Valley, Jason Hartman University, we’ve got about half of the room full, but I have to tell you, it may sell out very quickly because we have a partner on this event. This is very unusual that we have an event partner usually we just do ourselves, our event partner is also selling tickets for that event. And they have a webinar coming up tomorrow. And they are doing various promotions and such. So this event may sell out rather quickly. So I just want to warn you that normally, I wouldn’t say that when the room is only half full or half empty, depending on how you look at it. But for this one, it’s different because it’s not just us selling tickets. So if you are interested, it will probably be the only Jason Hartman University event this year. I usually do this one about once a year. And it’s where we dive into the details of income property investing, the interactive stuff, the hands on stuff. So prepare to roll up your sleeves as the saying goes on this one. And I want to tell you, there’s some bad stuff going around too bad things going around. One you probably know is the flu and this flu is bad news. Now, I often wonder why we still engage in the tradition of shaking hands, you know our president of them or hate them? I hear he doesn’t shake hands. I actually heard that many, many years ago, because he doesn’t want to get sick. And so that’s something definitely to be aware of. This flu is just bad news. And I guess we’re about halfway through the season, the season, they tell everybody it’s flu season. So somehow everybody gets sick power of suggestion, Psychosomatic Medicine. So be careful to keep that in mind. You know, psyche, the mind controls some of the body in many, many ways that we do not even yet understand. So a lot of it is a psychological component to anything in anything in life. But the other thing that is going around that has a very dangerous, life, ruining disease, and it pervades our culture. pervaded our culture for many, many years, certainly it got a foothold, maybe about 60 years ago. And it’s just been getting worse and worse as the disease has been spreading and spreading since then. A 60 year old disease. I mean, that is ruined lives. It has made the world an inferior place to live. It just keeps getting bigger and bigger. It’s perpetuated by the news media talk about psychosomatic right. It’s perpetuated by our culture in general. It’s just everywhere you look. Be careful, you don’t catch this one. I’ve caught it a few times in my life, but I think I’ve shaken it pretty well. But some people even surprising people that you think would be immune to this, catch this disease. So be careful of it. Here it is. It is the disease, of entitlement. The entitlement attitude. It is a ugly, nasty disease. And the interesting thing about it is that people sometimes think mistakenly, that the entitlement disease will get them something. But actually, it will lose them, potentially everything, or lose them a lot. Let me tell you, it’s bad. And this is why I remember many years ago, I took this course that had a big impact on me. And maybe some of you have taken these kinds of courses a little New Agey and style. But in this course, they talked about being the source, the source, right? In this concept of being the source. We can look at everything that happens to us in life, many, many ways, obviously, right. We are incredibly good as humans at inventing alternate realities, rationalizing things, making ourselves believe what we Want to believe, even in the face of an incredibly different reality? So last night, interestingly, I saw the movie Vanilla Sky. Did you see Vanilla Sky? That refers to a famous Monet painting. I love impressionist art, by the way. So now you know what to get me for my birthday or Christmas, right? Mo day, you should just give me a Monet send it on over. If you need my address. Just let me know. I’ll send it to you. And talk about entitlement attitude, right? Like I really think my listeners are going to buy me a Monet for my birthday, right? So the Vanilla Sky is the beautiful color of the sky. Right and the movie is with Tom Cruise and Penelope Cruz spelled differently. She is so cute. How cute is Penelope Cruz, right? And then Cameron Diaz well, easy on the eyes to of course. So anyway, in this movie less we get distracted. Tom Cruise the main character Just invents this totally alternate reality. Now it was the second time I saw the movie. I saw it when it came out in the theaters many years ago, maybe 17 years ago or something like that. But I saw it again last night, because, frankly, I’m running out of stuff to watch. Any suggestions for my Netflix queue? or Hulu or Amazon Prime? Fire away, Jason hartman.com slash ask. I would love your movie suggestions. You know why I’d like them from you more than any other because you people are so smart. In the general population. You don’t get very good movie recommendations, but I bet from you, our dear listeners, I will get fantastic movie recommendations. And anything you want to say to me or ask of me. Jason hartman.com slash ask, which by the way, we got a question the other day on taxes and 1031 exchanges and unwinding a real estate portfolio and getting out of the game. Maybe this applies to Someone who’s older and just wants to cash out kind of thing, right? And I was talking to my partner in this large apartment complex we own just a few minutes ago actually. And in the real estate game, just like in a business, when you take all the advantages over the years, like depreciation, for example, or appreciation, because you can get both at once it’s a beauty of income property, right? When you take all the advantages for a few years, you get kind of stuck. Yeah, you’re kind of married to it, okay. You’re married to it, you really are. So it’s hard to unwind. The best thing to do literally, is to die. Just die with all your real estate, right? And you can do 1031 exchanges throughout your life, an unlimited number of them, but the best tax planning is to just keep them okay to keep the properties. I did forward that question, though, to see if there were any nuances to Ryan, who was one of our meet the masters of income property speakers and CPA who’s been on the show? And I asked him to answer it, and I would play his answer on the show. So more on that, but Jason hartman.com, slash ask for anything, anything telling me something, asked me something, complain about something, whatever, Jason hartman.com slash ask, you can go there. So the disease of entitlement and inventing the alternative reality, we are in an alternate reality? Well, you all saw the famous little video that went around years ago and maybe read the book called The Secret the secret, right? So the secret is only half the battle, right? Because the secret type of follower kind of has the entitlement disease themselves. If you think about it, you know, they believe that if they just sit around and visualize things, everything will come. Come to them, oh, I am prosperous. I deserve the world owes me living. This kind of thinking is a disease It is a very bad disease. And I’ll tell you, you know what’s happened with some of the people that have worked for me over the years, maybe you know, some of these people, right? They earned more money working with me than they ever earned in their entire life. I mean, just not even a contest, okay? Because I knew what they were earning before. And, you know, many of these people I knew for many years before they worked with me, and then they left and they earned way less money. Okay. So the disease of entitlement, sometimes ruins relationships, right? Because if you start expecting everything, you know, like in an intimate relationship, maybe we’ve all been guilty of this. I will admit that I know I have keeping score right? keep score. Okay, you know, it’s just not gonna end well. It’s not going to end well, right? You probably heard me talk in the past about my days back at century 21 in Anaheim, California. When I first started in the business, one of the biggest lessons for me was looking around that office and listening to all of the agents complaining about how the company wouldn’t do enough for them. The broker wouldn’t buy them notepads to pass out in their farm area. You know, these notepads were like $180 for 1000, notepads, you know, little notepads with the realtors, picture on them to pass out in the neighborhood, that type of thing. And they were constantly complaining about that. And I remember the comparison I remember thinking to myself, I worked in that pioneer chicken that my mother owned that piner Chicken franchise. It was an absolutely terrible expense. The windows would get shot out, literally drive by shootings, I kid you not. My mother was robbed at gunpoint twice in that place. And she had to put up $275,000 to get into that franchise 100,000 down 100,000 in loans and $75,000 in equipment leases, okay, and her big goal was turn 60 to $80,000 a year from that business, and see if she could get three or five of those going over the course of several years. And then you’ve got these realtors who have this total entitlement attitude where they won’t even buy the most minor thing for their business. And they could earn hundreds and hundreds of thousands of dollars. Now even more but, you know, back then just adjust for inflation. You know how to do that math. So the entitlement attitude is like Cancer. It just ruins us. It ruins relationships. It is a terrible thing. It is the opposite of a win win ideology. It is a lose lose ideology. But the person who loses the biggest is the person who carries the weight of that entitlement attitude around with them. They lose the most, this entitlement disease guard against it like it’s the flu. Okay, how do you guard against it while you guard against it with the idea of self reliance and personal responsibility? And here’s the thing about going back to that being the source concept, right. When you are viewing your life, as though you are the source. An interesting thing happens. Things shift dramatically. Suddenly, you have the power, not the event, not the circumstances. Not the other person. Now, it begs the question, was it your fault? But that’s not the question. Right? That’s not the question. That’s the typical question. It’s just not the right question, right? Because certainly people are victimized. I’ve been victimized many, many times. Sometimes I feel like I’m getting victimized many times a day and business deals. It’s terrible. And some people have been victimized much more tragically, obviously, than any of us, you know, people have been put in concentration camps in the Gulag in Russia. You know, not many people talk about the evils that went on in Russia. They talk about what the Germans did, but not enough PR about the Russians, that’s for sure. You know, under Stalin and Lenin and Trotsky and all these evil communist people wake up every day in places like Cuba and North Korea as political prisoners. Okay, little Kids get murdered. I mean, that’s not their fault. Obviously, it’s not their fault, right? But the difference is, regardless of whose fault it is, when you view yourself as the source and you think, well, maybe I can learn something or gain something out of this, then the power shifts back to you. Right? So the entitlement disease is the disease that half of our country is walking around with. How do I know this? Well, because I know how half of them vote and why they vote that way. They expect something they didn’t earn, they want something for free. They want something from government or society or whatever it is, right? It’s the entitlement attitude. And this is worse than the flu. It’s really dangerous. So guard against it, guard against it in yourself, because Nothing good will come of it. We all have it from time to time. I certainly have it from time to time. Sometimes I wake up and feel like the world just owes me a living. You know, there’s an occasional day where I’m just grumpy or sad. And I think, you know, why aren’t things working out my way? It’s not fair. You know, the world owes me right. And I say this because I’m sure we have all felt that way. Even the most responsible person ever. But we got to just check and say, hey, look, if this set of circumstances went a little bit differently, or if I did this or said that, you know, maybe this position, this situation wouldn’t be happening right now. I mean, how many times have you seen that, you know, you’re one number off winning the lottery, or, if the light didn’t turn red, you would have made it to the appointment on time. And if you made it to the appointment on time, the deal would have come together, but because you were late, you missed the deal, right? All kinds of circumstances happen, but it will do no good. It to be entitled, having the entitlement attitude. Just a thought for the day there. This should probably be a 10th episode Show. I’m on a tangent, and I will get off of it because you are entitled as landlords to collect your rent. Okay.
Jason Hartman 17:19
And that’s what we’re going to be talking about today with Jeff Crone rod, going to talk about lease guarantees. We’re going to talk about tenant screening, we’re going to talk about collections, all this kind of stuff. Now, one of the things I want to tell you in this interview, I remember we talked about how I believe and I’ve told you this many times before, that landlords really should hold tenants accountable. Too many landlords just let it go. They let them off the hook. They say things like, Well, you can’t get blood out of a turnip. Okay, you know, in other words, the person’s got no money I’m never gonna collect folks. Get your judgment and let it sit in earnings interest. Okay. You know, Look, some of you do private money lending, some of you buy bonds. I hope not too many of you do that. I hope none of you do that actually, you all buy income properties, and you’re willing to be patient and wait for your return on investment, that is the mark of maturity, being patient, which by the way, it goes back to being at source, right? See, when you view yourself as the source, and you shift that power, then the psychological makeup of your decisions can be instilled with more patience. And a lot of times the situation will just turn around and suddenly you’ll get what you want. In fact, I remember a good saying I used to say a lot during the 90s recession, not the Great Recession, but the one before that. See this The great thing about getting a little older you get some perspective on life, right? I remember saying the key to success in business. When I used to do seminars, I used to say this to realtors all the time, I would train real estate agents on marketing and direct mail mail. Yes, snail mail. You know, this was even largely before email some of this Okay, email existed but not many people use them. I would say the key to success in business is staying in business long enough for something good to happen. Staying in business long enough for something good to happen. And that’s the key to success with income property because income property is a business just like selling widgets, okay? It’s all business, right? So being at source makes you more patient and it will allow you to manage your psychology and stay in business long enough for something good to happen. Stay in the relationship long enough for something good to happen. I mean, certainly over the years, you know, I mean, if You talked to couples, for example, that have been married for many, many years. And if they’re honest with you now, a lot of married people don’t really tell the truth about their relationships. I understand that, you know, you gotta know, nobody knows what goes on behind closed doors, right in their private lives. But you know, if they’re being candid with you, they might tell you, hey, yeah, you know, we’ve been married 50 years. And we’ve had some really hard times over the years, but are more in love now than ever. Right. And so, staying in business long enough for something good to happen. That quote, I love so much. I think jack Paar said success is largely a matter of hanging on after others have let go. So hey, I’m way off on a tangent here. So we’ll do this one in two parts. But here is part one of Jeff crown rod. Let’s talk about that. Go register for Silicon Valley event coming up March 3, at Jason Hartman University. calm. Jason Hartman university.com look forward to seeing you there. And here is the interview. And I’ll be back tomorrow with another episode.
Jason Hartman 21:20
It’s my pleasure to welcome Jeff Chrono to the show. He’s a returning guest. He’s founder of the American apartment Owners Association, also founder of rent recovery service. We’re going to talk about a new program fairly new program they’re involved with called lease guarantee, and just some other issues that affect single family, homeowners and small cap apartment owners. Jeff, welcome. How are you?
Jeff Cronrod 21:43
I’m good. Thanks for having me back.
Jason Hartman 21:44
Yeah, it’s good to have you on the show. So let’s dive in and talk about lease guarantee. First, I mean, every landlord wants their lease or their rent to be guaranteed. Who wouldn’t want that? There have been other players in this world with I guess, I’ll say Similar promises they’ve been done sometimes as an insurance policy. Yours is not an insurance policy. It’s a contract, I guess, forgive me for maybe diving into deep to quickly give us the macro picture of what is lease guarantee. And then let’s drill down on it
Jeff Cronrod 22:16
well, in a macro sense, essentially there to cover both tenant and, and landlord and providing a safety net, really for both sides to cover any losses that might be adjudicated in terms of anything from a breach of the rental agreement of the lease. So from landlord standpoint or property management company standpoint, lease guarantee is going to help them read the unit, help them secure the unit to a strong tenant. And I think from an applicant or tenant standpoint, it would avoid the problems of either either being required of a cosigner or if they have poor credit or even no credits, a lot of young people renting that may not have credit, then additionally can also be used in lieu of or in addition to a secure deposit. So there’s lots of help there for both sides.
Jason Hartman 23:00
Is it for any landlord with any type of property or any tenants or only certain markets that you mentioned
Jeff Cronrod 23:08
to available to any landlord, it can be someone with just a single family home or condo to someone with thousands of units certainly can use it’s available on a tenant by tenant basis. And it is part of the 10 screening process. So when the landlord property manager runs a screening report, they’re advised whether or not the applicant qualifies for lease guaranteed contract. And if they do, then it’s their option and the the landlord can pay for it on them. In most cases, the tenant pays for it. Although we’ve had some landlords pay for it and then amortize the expense over the course of the year. You know, we’ve been it’s been exciting to watch different ways in which they’ve been doing it but it was it’s really designed for the tenant to pay for it. And it’s been used a lot to soften the moving money because frequently owner will waive or reduce the secure deposit which could be sizable given today’s rents, rather than coming up with two or three months. worth of rent up front, which is hard sometimes for tenants, they can do a lease guarantee and reduce that moving money. So again, it really works both sides.
Jason Hartman 24:08
Yeah. So give us an example of say you’ve got a single family home. And just for a nice round number sake, it rents for $1,000 per month, and you want your tenant to get this lease guarantee, not insurance, but this lease guaranteed contract, how much does it cost them? And what does it provide for the landlord and the tenant?
Jeff Cronrod 24:31
The minimum contract amount is 20 $500. And the cost for 20 $500 contract starts at about $299.
Jason Hartman 24:40
Does that contract mean that’s the value of the lease that only be a couple hundred bucks a month for a year if it’s a year lease, but or what do you mean a contract for? Or is that the amount that they’ll pay out the maximum amount paid out or what is that number?
Jeff Cronrod 24:52
That would be the maximum amount paid out in the event there’s a breach of the tenancy agreement, whatever the dedicated by court, if there’s a problem We all hope there isn’t. But if there’s a problem, and the tenant either leaves or breaks the lease leaves without paying rent or does property damage, or there’s legal costs, it covers all of it, whatever is adjudicated by a court up to the contract amount, and you can purchase contracts up to $10,000. But just keeping it simple, a 20 $500 contract is going to cost about $299 or more depending upon some of the underwriting algorithms that we use, but just keeping it that it’s an annual payments renewable, and it is part of the tenant screening process. So when it when a screening report is run, we’re able to gather up enough information to in real time offer the contract to both the landlord and the tenant, let them decide if it makes sense in their transaction.
Jason Hartman 25:45
Basically, the cost is a little bit more than 10% of the amount of the I keep wanting to say insurance.
Jeff Cronrod 25:52
It’s definitely Yeah. What do you call it? The amount of contract, okay, yeah, it’s a guaranteed contract
Jason Hartman 25:59
in order to get This money so the tenant just leaves and breaks the lease early, or they damage the property. I mean, what’s covered? Is it damages to the property above and beyond the security deposit? Or is it breaking the lease? Or is it both or tell us that
Jeff Cronrod 26:15
it’s anything that a court will grant would include legal fees include property damage and lost rent.
Jason Hartman 26:21
This is what I find to be really discouraging. And since you’ve been in the collection business, you know, mostly awards just don’t pursue it. They don’t litigate, you know that the breach, they just let it go. And they say things like, well, I had a bad experience. He can’t get blood out of a turnip. You know, I’ve heard it so many times is just sickens meter. These landlords just don’t hold tenants to their contracts. But that’s just the reality of it. I mean, is that a way for you guys to not have to pay too many contracts? Sorry, if I’m being a little confrontive, but I want to be healthy skepticism.
Jeff Cronrod 26:55
Yeah, no, I understand. But it’s actually just the opposite. It helps them because they’re going to have to assume To get possession, they’re going to have to go to court to evict. And I agree with you. Most of them don’t want to pursue collection, they get a judgment, they get the tenant out. And they let the judgment go. We have that issue that issue when we were when I had rent recovery service, convincing landlords that in fact, you can collect it. But when I asked him to collect anything, we’re basically putting ourselves out there and saying, we’ll give you the money immediately following your successful eviction judgment. So get an eviction judgment is what you need. And you need to do that anyway to get them out.
Jason Hartman 27:27
Right. Not always, but a lot of times. Yeah.
Jeff Cronrod 27:30
Well, yeah. I mean, you’re right, they do have to mitigate their damages in order to to collect on the contract. In fact, that was a significant problem with one of our predecessors that didn’t make it in this business because they didn’t subrogate they didn’t force the claim at the landlord to get a judgment. There were a lot of fraud claims, because people were just, they were just claiming that there was a last one that was it, there was no proof of claim. So we do need a judgment and in theory, pretty much everything was going to have to effect
Jason Hartman 27:58
Okay, so let’s let’s make sure all the lesson Understand this, if you have a bad apple, which happens occasionally. But it really doesn’t happen as much as people say it does. They like to talk about it. These people that don’t invest in real estate like to talk about it like it happens all the time. It really is pretty rare. In fact, it took me a couple of decades after my very first property, my first property I had to evict. I was 20 years old. That was a bad experience. But after that, I went many, many years, like about two decades, I think, without an eviction, it was a pretty amazing really well, you know, I didn’t own zillions of units either. So you know, but you know, I had a, I don’t know in there, I probably had several hundred tenants. Maybe over the years. There’s two stages, just let’s make sure everybody understands this. When a tenant doesn’t pay their rent, the first thing you do is you give them the three day notice to pay or quit, right can have a process server do that. You can do that from anywhere in the world. You don’t need to be local, blah, blah, blah. That’s easy for your property manager does this if they do Don’t move or they don’t pay, you have to basically sue for eviction, which means you’re suing for the right to retake possession of the property, literally by force, the sheriff will come or the marshal will come, and they’ll kick them out. They’ll put their stuff on the curb, and they’ll be kicked out. This hardly ever happens because they usually move before that, obviously, but that’s what you’re doing. You’re literally filing a lawsuit for possession of the property. Okay, but after that, and this is the part that most in most times the tenants will just move and you won’t have to go through with it, you know, but after that, then comes the money. You’ve got the possession of the property, but then comes the money. Are there damages to the property above the security deposit? Right? Is there back rent I owed? Is there forward rent? Oh, meaning did they break the lease and, you know, you’re sitting with a property that’s vacant for an extra month or two, because you didn’t release it right away? They’re potentially liable for all of that stuff.
Jeff Cronrod 29:59
Do you want to add that That? No, I mean your descriptions right on. And the only I might want to add in terms of the, the frequency is in depends upon the economy and the geography. But just to sort of fine tune how frequently we do it in eviction courts are backed up. There are a lot of evictions, and they run anywhere from about six to 9% in different areas, currently, and when the economy falters, that number goes up. So there’s a reasonable amount of lenders that do have to follow through and effect sure sure sounds like yet yet lucky. 20 years. Yeah,
Jason Hartman 30:31
yeah, well, certainly I did. But I’ll tell you something. The way to not have evictions is to do better Tenant Screening up front, you know, so maybe you want to address that after this. But let’s get through the where this contract comes in. I explained the two parts of the lawsuit one is for possession the other parts for the money. Usually, I find landlords just throw up their hands and they don’t bother chasing the money. You know, I just think this is crazy. This has to end you get the judgment For the money, and you’re handed to a collection agency that judgments gonna last for 10 years, I believe everywhere now it’s 10 years, I could be wrong. I’m not a lawyer, and you can renew them. It’s some point that tenant, especially if that judgment gets on their credit report is going to want to buy a house or a car. And that creditor may well say, look, before we can give you a loan, or lease for a car or lease for another property, you got to satisfy this prior creditor. And then do you want to speak to that a little bit? I mean, you’re you’re in
Jeff Cronrod 31:32
that business, you know, a lot more about it than I do. Well, I went ahead and your description is right on, except, of course, that not everyone wants to wait 10 or 20 years for the length of the judgment plus renewal time. And lease guarantee allows you to get your money right away.
Jason Hartman 31:45
I know you’re promoting lease guarantee. I got it. No, no, I’m fine. I’m fine with that. But all I’m saying is to get the lease guarantee. What judgment Do you need to get
Jeff Cronrod 31:54
only eviction or money judgment, at least in California gentlemen, one of the same. It’s not identical. There’s this mirror each other, but they commit, they can be done concurrently, since you’re paying the attorney to show up in court and get an unlawful detainer action, right, which is a judgment for possession, you also can currently get one for restitution, which means money. And so you get a money judgment concurrent with your eviction judgment. It doesn’t call, I think it costs pennies more. At least it used to be just 20 to $30 to get that additional judgment. Right. Yeah, I think it’s similar throughout the country. Yep. So it’s almost foolish with with at least guarantee, as you said, You’re always better off with the money judgment of you willing to wait out the time for 10 years, and
Jason Hartman 32:35
that’s exactly what
Jeff Cronrod 32:36
spends the effort to get an eviction. It doesn’t make sense not to get money. Just
Jason Hartman 32:41
I it blows my mind the way landlords just don’t bother. They just let them go. You gotta stop doing this landlords, don’t let them go away.
Jeff Cronrod 32:50
You know, you gotta look at it. As you know, I’ve been in this business for 30 years and been a landlord for 40. And I’ve been preaching exactly what you’re saying all that time. It doesn’t make let them get away with it, like stealing your goods off the shelf.
Jason Hartman 33:04
Yeah, yeah, there’s shoplifting. if for no other reason, then philosophically, look at society collapses when people don’t uphold their contracts. That’s why we have courts. So you don’t have to go be violent. You don’t have to stick gun in their face, you take him to court. And through the civil process, you have forced their hand to uphold their contract. And that’s what you got to do. So when you get that money judgment, if that money judgment says $2,000, and you bought the 20 $500 contract, or the tenant bought it for you, then you just instantly pay that out. Right? Correct. Okay. Okay. What else you want people to know,
Jeff Cronrod 33:38
it works, and it makes sense. It really is there to help both sides. I mean, I think that’s for me is the key for an owner who has a vacancy, he’s losing money. And you know, even circling back to getting a judgment for a minute and what we were just talking about, it’s more than just getting even these landlords are not all rich people, and they have mortgage to pay and taxes to pay and so on. And Losing a month or two of income sometimes puts these landlords in foreclosure. Sure. So it’s really less about getting even and chasing the bad guy and more about saving your own skin because they’re in business to make money.
Jason Hartman 34:12
Absolutely. This will be continued on the next episode. Thank you for listening and happy investing. Thank you so much for listening. Please be sure to subscribe so that you don’t miss any episodes. Be sure to check out the show’s specific website and our general website Hartman. Mediacom for appropriate disclaimers and Terms of Service. Remember that guest opinions are their own. And if you require specific legal or tax advice, or advice and any other specialized area, please consult an appropriate professional. And we also very much appreciate you reviewing the show. Please go to iTunes or Stitcher Radio or whatever platform you’re using and write a review for the show we would very much appreciate that. And be sure to make it official and subscribe so you do not need Any episodes. We look forward to seeing you on the next episode.