OfflineI would like to pose this question to all REI. We haven't seen the economy in this bad of shape since the depression. I understand how millionaires were born during that time. My understanding is this time is a bit different. I want to know how this economy (the decreasing dollar and high unemployment) Global threat of countries going bankrupt, and our very own mortgage crisis the way that it is, how does this effect REI, private money and the like? If USA is on its way of collapsing (according to media reports) how does this effect our revenue?
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I have the same question and I'm sure many of us newbies are wary now of taking action. Do we have time to build wealth before the bottom falls out? Sure would like some of those who are in the know to answer this question also. Thanks D.G family.
this time is different for macro-economic reasons. I would be the first person to tell anybody that it is possible to make money in most markets; and I think for SOME on this website, that is the case. Some of us have had an ongoing business for a number of years, our network is fully developed, our understanding of real estate concepts are excellent and we can calculate the risk/reward of any deals pretty quickly.
But because of the upheaval in the real estate market, the lack of end buyers, the shadow inventory of foreclosures, the ongoing banking crisis, the globalization of the economy, the lack of political leadership, the extended nature of our country's deficit, the fact that unemployment isky highgh, and many other factors; I don't believe that most readers on this website "get it" as they don't have a reference point.
Sure buying real estate at 65% is a great deal, but not when the market is still moving lower and eats half of your margin. The currents in this river are swift and you must remain nimble. You must have an exit plan. You must have Plan B (also C, D, E and F).
I think real estate is one of the greatest opportunities in the world but if you buy in a lot of markets right now, you better be willing to absorb a downdraft in prices, especially if we double dip.
Remember, the Great Depression was also a buying opportunity for those folks that could hold on FOR OVER TWO DECADES. Jump on the bandwagon today if you can do the same. Or be VERY selective, do your homework, network and build power teams, educate yourself in other channels to learn more.
And for the record; I hope I am wrong about the US economy and things get better next year. That would certainly be nice for my plans. But I am planning for a very bad time ahead as I think we haven't seen nothing yet.
Always Looking to Acquire Houses | Always Looking to Amaze Investors
I think you make some valid points Bill. I am a beginner and know just enough to be dangerous. I posted this question not to deter anyone from doing this business. I am looking for the "Pony in the pile" so to speak and be smart about my strategy. However, being green in this, I'm not sure what that looks like and really don't wanna lose my a** from stupid mistakes when I can learn from this website of things to think about and do and avoid costly mistakes. I know I'm going to make some (we all do) it's just this economy is too big for me to figure and strategize. My desire is to minimize any damage and make great money along the way. Any input from seasoned investors that have an inkling about this economy we are in please post your thoughts. Thanks!