Tips on surviving the Real Estate Meltdown
Peter Drucker said "The greatest danger in times of turbulence is not the turbulence. It is to act with yesterday's logic." Turbulence in the real estate market will shake out the real investors (professionals) from the dreamers (amateurs).
The media is full of doom and gloom and situation is likely to get worse before it gets better. Depending on which pundit you listen to, it will take anywhere from two to ten years for the market to turn around. My bet is three to five years. Those who survive the market will reap the benefits when the market turns around as it will, sooner or later. However, if one looks at the history of Real Estate, it can be seen that the market has ALWAYS bounced back to be bigger and better.
Survey shows that many investors are giving up because they don't have the cash flow to survive the down turn. Cash is King and cash flow is vitally important to ensure your survival. You need cash flow to cover your mortgage payments (some with adjustable rates kicking in at a higher rate), taxes & insurance and general upkeep. We could go on and on why cash flow is so vitally important. Now consider the plight of those investors who have vacant houses and making their life hell.
Perception is reality - The best tip I can give you is Not to believe all that you hear in the media. Whether it’s true or not, your perception will become your reality. There are plenty of investors who are doing well in this market. Start with your new belief that you can survive and make money in this market. The Chinese symbol for crisis and opportunity are the same. You can make a great deal of money in a down market if you understand the new rules and strategies and position yourself correctly.
Ride the down turn - Don't sell. Yes, don’t sell. Whether it’s good times or bad, my advice is always to hold on to a house if you can. Your wealth and passive income will come from holding on to Real Estate, not selling it.
During slow times, tool up. It’s not going to be like this forever. Get yourself ready for the next go around. Use any extra time to further your education. Take courses in not just real estate topics (e.g. short sale, probate, foreclosure, etc.), but also general business skills like management or accounting. Attend Real Estate conferences so you can learn both new information and meet people.
If your " 50+ page report is FREE, why do you require credit card info to read it? Sorry, Charlie! Not interested in the possibility of being scammed!
Actually, I believe the market is going to begin a slow turnaround next year (after the next wave of ARM defaults). I agree with Donald Trump who recently said that the next six months to a year are the time to grab all the bargains that are available and that will never be available like this again. When otherrs are selling (or trying to), we should be buying/controlling. We should be doing the opposite of what the masses do. Mass hysteria creates wealth. You can still buy and sell in this market; you just have to create your Buyers from a pool of people who normally would not have considered themselves to ever become a homeowner (people with fair credit or above and no down payment money OR people with a small down and horrible credit). The subprime meltdown has been the greatest thing ever for the L/O biz. Prior to it, 100 percent financing was given to basically any schmuck who could fog a mirror, so why would they want to pay to obtain a L/O? But now, the 500 FICO crowd has no other alternative. Cha Ching! And Sellers are so desperate that a L/O offer is an openly welcomed solution for many of them. I don't see pitfalls. I see opportunities. But yeah, if you are trying to sell to the A+ borrower, it ain't gonna happen, because they ain't buying. You have to go after the renters (some with great credit) and: 1. Convince them they can be homeowners and 2. Create an unbelievably attractive deal for them to jump on (no money down and no closing costs if their FICO is high enough).
What's the Chinese symbol for "Give me your credit card info"? LOL
Just came across this article today; clicked thru to get the free report; just filled in personal info; did not fill in CC info; hit "submit" button and was taken to downloadable pdf file which I'll read tomorrow.......