You've no doubt seen them or read them. Glossy adverts or four-color advances in magazines and papers promising to teach you all the juicy information about successful real estate investing. And all you need to do to learn all these real est investing surface encounters chuck russo secrets is to pay a rather high sum for a one-or two-day seminar.
Often these types of slick property investing seminars claim that you can make wise, profitable real estate investments with simply no money straight down (with the exception of, of program, the large fee you buy the seminar). Now, how interesting is which? Make a benefit from real estate investments you made with no money. Possible? Not most likely.
Successful owning a home requires cash flow. That's the type of any type of business or investment, especially real estate investing. You put your hard earned money into a thing that you desire and plan can make you more income.
Unfortunately too little newbies for the world of real-estate investing think that it's a magical type of business in which standard enterprise rules don't apply. Simply put, if you would like to stay in real-estate investing for a lot more than, say, a evening or two, then you will have to generate money to make use of and make investments.
While it might be true that buying property with absolutely no money down is simple, anyone who is even made a basic investment (such as buying their own home) is aware there's a lot more involved in real-estate investing that can cost you money. For instance, what about any essential repairs?
So, the primary rule people not used to real est investing ought to remember is always to have available cash reserves. Before you determine to actually do any property investing, save some cash. Having a little money within the bank once you begin real est investing surface encounters chuck russo can help you make more profitable real estate investments in rental properties, for example.
When real-estate investing inside rental properties, you'll want every single child select only qualified tenants. If you've no cash flow when property investing in rental attributes, you could be pressured to take in a less qualified tenant because you need somebody to cover you money so that you can take attention of fixes or attorney at law fees.
For almost any real estate investing, meaning leasing properties or even properties you buy to sell, having funds reserved can allow you to ask to get a higher cost. You can request a greater price from your investment because a person surface encounters chuck russo won't feel financially strapped as you wait for an offer. You won't be backed into a corner and forced to accept just any offer because you desperately need the money.
Another downfall of many new to property investing will be, well, greed. Make a profit, yes, but do not become therefore greedy that you ask for ridiculous rental or second-hand rates on many real estate investments.
Those not used to real est investing need to see real estate investing like a business, NOT a hobby. Don't believe that real estate investing is going to make you rich overnight. What business does?
It will take about half a year to decide if property investing set for you. If you've decided in which, hey I enjoy this, then offer yourself many years to actually start earning profits. It usually takes at minimum five years to become truly successful in real-estate investing.
Persistence may be the key to success in property investing. If you might have decided that real estate investing is for you, surface encounters chuck russo keep plugging away at it and the rewards will be greater than you imagined.
D I V O R C E the Fed.
Now. Uncontested. Just cut the ties that bind us to the slavery.
but then the idiots in congress, and the "Current Resident" on 1600 Penn Ave, would have full control, in which case, the skids would be greased even more. Well, that might not be entirely true, since most of those bastards are nothing but mere marionettes, with their strings being yanked at every move, by the likes of soros et al, you know the ones ...."new world order" lovers who are aiding in the dismantling of the once Great US, and serving it piece by piece to china, however, the same zealous ideologues and true enemies of the US, fail to notice that that marvel called EU is crapping out, approaching the full blow-out point, at which time most of their 'contents' gleefully ingested as ingredients of the delicious EU, will be excreted, and when the end result will hit the proverbial fan .... duck and cover.
Unfortunately, what Gross has become is a splendid specimen of the 'grownup hippies' who in the 60's and 70s were raising hell, in the name of a better America, while now, a decent number of them, to varying degrees, having become 'fat cats', forgot how they were able to amass their fortunes, and instead of uniting and contributing however possible to returning the country on the path to prosperity, are now, continuing to chase an easy buck, by financing our adversaries, and most likely our enemies, based on their propaganda they already consider us their enemy - all to the detriment of the quality of life during the 'golden years' for some of us, as well as the quality of life (or lack thereof) for our children and future generations.
Once Heli-Ben got rates to 4% yet the economy continued its tanking trajectory, the politicians should have pulled their heads out of their asses, and begin serious work on policy intervention aimed entirely at rebuilding the domestic manufacturing base, which is all but gone, as well as ensuring that any fed provided liquidity remains 100% - or close to it - in the US.
Given the facts revealed by the Bloomberg recently released Fed back-door loans, makes me wonder if Uncle Ben himself is not among the facilitators of the "new world order"?!
So me thinks anyway.
Duck 'n cover everyone.
The manic depressive market wildly swings up and down on each new news story: The Fed is meeting at Jackson Hole on August 27 possibly to discuss QE3 (or not), and that news may pump up the stock market. But China's banks seem to be using Enron's accounting manual, Europe's banks need liquidity and are loaded with bad debt, and U.S. banks only temporarily TARPed over trouble. Gaddafi's regime in Libya appears over, but Libya's oil output may not fully recover for years. Venezuela wants banks to open their vaults and send back its gold, but Wells Fargo says gold is a bubble. Pundits say gold is a barbarous relic, but exchanges and banks are now using gold as money. The U.S. is headed for hyperinflation with skyrocketing stock prices, but on the other hand, we seem to be deflating like Japan and doomed to a deflating stock market for another decade. Whom do you trust and what should you do?
No one knows where the stock market or U.S. Treasury bonds are headed tomorrow, but in my opinion, here are some fundamentals to consider.
The Bad News Isn't Going Away
Until we have real global financial reform and restrain the banks, we won't have sustained growth. The stock market hasn't hit bottom. There's a crisis of confidence in banks and all currencies. We haven't taken effective steps to tackle the U.S. deficit through productivity. We haven't examined spending to eliminate fraud and waste, and we haven't addressed our need for more tax revenues by eliminating the Bush tax cuts (for starters).
Savers are punished by "stranguflation:" negative real returns on "safe" assets, declining housing prices, and rising costs of food, energy and health care. The Fed touts the falling cost of I-Pads, but how often do you buy one of those, and how often do you eat?
Good News (for Now)
The USD is still the world's reserve currency. Even though we devalued the USD, there has been a global flight to U.S. Treasuries pushing down our borrowing costs (yields). No one in the global financial community feels the U.S. has done its best to correct our problems, but severe problems in Europe, China's inflation, and Middle East unrest has money running to the U.S. Since we've devalued the dollar, we appear to be a bargain for foreign investors, even though they are terrified by our money printing presses and the potential for inflating commodity prices in the long run.
How did I play this? My own portfolio is currently more than 20% gold with some silver, and I bought out-of-the-money call options on the VIX when it was in the teens with maturities of 4-6 months. This is "short" stock market strategy, one could have also done well buying puts on the S&P a few months ago. In the first big stock market downdraft in August, I sold the options when the VIX hit the high 30's, and I'll buy more options again if the VIX falls again. Many investors are not comfortable with options, and this strategy isn't appropriate for everyone. The rest of my portfolio is chiefly in cash or deep value opportunities.
What Happens Next?
No one knows for sure, and anyone who tells you he or she does is selling snake oil. The situation is fluid. We tried to reflate our deflating economy. Our massive dollar devaluation may encourage investment, because it's protectionist. It reduces our cost of labor, among a few other "benefits." The problem is that the Fed has printed money, and we haven't done anything to position the U.S. for greater productivity. We're trying to inflate our way out of a problem without investing in productivity. This is a very dangerous way of attacking this problem. Even more "stimulus" would just be an attempt to inflate our way out of our long-standing deep recession. That's the foolish and unsuccessful strategy we've adopted so far. That could lead to runaway budget deficits (our deficit already looks intractable) and bring us to double-digit inflation. Even the European flight to US Treasuries may not save us from a deeper recession in that scenario.
If we don't overreact -- and we may have already overreacted -- our dollar devaluation results in our foreign trade situation first getting worse (as it has now) before it gets better. Now is the time (actually, we should have started years ago) to spend capital to increase U.S. productivity. The dollar's plunge relative to other currencies will eventually make us more competitive. This will be good for blue chip companies, in particular those that own real assets and manufacture items. The Fed and Washington may do anything, however, so one must watch the news.
What does this mean for the U.S. stock market? In my opinion, it is currently not good value and feels like the 1970s when we experienced a recession followed by inflation. One should consider staying mostly in cash and expect stocks become cheaper. One might miss an interim rally, especially if the Fed announces QE3 (more "stimulus" and money printing) or more bank bailouts, but that is like using Kleenex laced with sneezing powder. We will see stock prices even lower than they are today. The old paradigm dictated that stocks were a buy when P/E ratios were 13 or less (and many are well above that), dividends at 4%, and book values at 1.3 or less. (This excludes oil companies, which tend to trade at lower P/E ratios in general.) I believe we'll see much better deals in coming months. In 1978/79 P/E ratios sank below 7 for blue chip companies.
Should one buy U.S. Treasuries with long maturities? The long end of the bond market doesn't reward investors due to the potential of rising interest rates. If interest rates spike to double digits, then one can reassess the situation.
Long term investors should consider buying commodities or companies that own physical commodities. We're running out of key commodities especially related to agriculture and fertilizer. Washington's brand of the latter isn't the type we need.
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