Miscellaneous
Jason Hartman's Commandment #17 is Thou Shalt Embrace the Fragmentation. Fragmentation acts as a defense mechanism for investors. It is more difficult to confiscate and the act of doing so costs significantly more than 401k and IRA assets, so it is less likely to happen. Laws governing the landlord-renter relationship happen on the local level. This local focus ensures that large, sweeping changes (even on a national level) are less likely to change the renter-landlord relationship for income properties throughout the country. Next, fragmentation helps real estate investors by keeping institutional investors out of the business. Because you’ve got property managers doing things differently, every developer, every real estate broker in every different market around the country, these institutions stay out of it, which allows more opportunity for individuals. When large institutional investors become involved, they sell shares and collect money off the top (hello, Wall Street!). Fragmentation helps prevent this. Finally, you should embrace fragmentation in real estate, but specifically within your own portfolio, by diversifying (fragmenting) your own investments across different areas and markets. Fragmentation doesn’t mean broken—it means diversity, control, and income. Website: www.JasonHartman.com