foreclosure investing

You've undoubtedly seen them or examine them. Glossy advertisements or four-color spreads in publications and papers promising to show you all the juicy information about successful real estate investing. And all you need to do to learn every one of these real property investing surface encounters chuck russo secrets is to pay a rather high sum for a one-or two-day seminar.




Often these kinds of slick property investing seminars claim you could make smart, profitable real-estate investments with simply no money straight down (except, of course, the significant fee you pay for the workshop). Now, how interesting is in which? Make a profit from real est investments you created using no cash. Possible? Not likely.




Successful investment requires cash flow. That's the type of almost any business or perhaps investment, especially real estate investing. You put your money into something which you wish and plan can make you more income.




Unfortunately not enough newbies towards the world of real estate investing think that it's the magical type of business exactly where standard business rules do not apply. Simply place, if you would like to stay in real-estate investing for a lot more than, say, a day or a couple of, then you will have to come up with money to utilize and commit.




While it might be true that buying real-estate with no money down is simple, anyone who's even made a fundamental investment (such as buying their very own home) understands there's much more involved in real-estate investing that can cost you money. For example, what regarding any essential repairs?




So, the number one rule people not used to real property investing should remember is always to have available cash stores. Before you choose to actually carry out any real-estate investing, save some funds. Having just a little money in the bank when you start real property investing surface encounters chuck russo can help you make more profitable real estate investments in rental properties, for example.




When real-estate investing in rental attributes, you'll want to be able to select only qualified tenants. If you might have no income when property investing within rental qualities, you might be pressured experience a a smaller amount qualified tenant as you need somebody to pay you money so that you can take treatment of maintenance or attorney at law fees.




For any type of real property investing, meaning local rental properties or perhaps properties you purchase to sell, having money reserved can enable you to ask to get a higher value. You can request a increased price from the owning a home because you 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 real estate investing is, well, greed. Make any profit, yes, but will not become so greedy that you simply ask with regard to ridiculous local rental or resell rates on all of your real property investments.




Those a new comer to real estate investing must see real estate investing like a business, NOT a spare time activity. Don't think that real est investing will make you wealthy overnight. What business does?




It takes about half a year to determine if property investing set for you. If you have decided that, hey I really like this, then offer yourself many years to really start earning money. It usually takes at minimum five years to get truly successful in property investing.




Persistence could be the key in order to success in real estate investing. If you have decided that property investing is for you, surface encounters chuck russo keep plugging away at it and the rewards will be greater than you imagined.

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.

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.