Three Big Opportunities In the Next 6-18 Months
Three Big Opportunities In the Next 6-18 Months
Hi Everyone,
I hope your week is going well. It's been a bit rainy in Virginia the past few days, which was a nice change of pace. Heather and I even took our dog Blue for a run in the woods the other day in the rain. It was very refreshing!
Today I want to do something a bit dangerous, which is to go out on a limb and talk about three MAJOR market trends that will lead to some big investment opportunities that I am seeing coming in the next 6-18 months.
It's always risky to do that because the world is always so quick to say "I told you so" if you're wrong, but I'm going to do it anyway because for some of you it might just make a BIG difference in your investing returns.
Now I'm going to have to be fairly brief in this letter, but I've recorded and posted a special audio workshop going into great detail about these three market trends, why they are happening, and most importantly, how you can position yourself to take full advantage of the opportunities on the membership site for Maui Mastermind Online. (Keep reading for the links and for instructions for those of you who are not yet members to follow to get immediate access to the site as a free 30-day trial membership.)
Market Trend One: A continuing wave of foreclosures coming over the next 24 months.
One of the best things about real estate compared to most investments is the relative slow pace at which things change. For the savvy investor, you have several months or longer to anticipate and prepare to take advantage of a coming trend.
Well this is one of those times. We're seeing the middle part of the foreclosure curve and it only is going to get more pronounced over the next 12-24 months before it starts to get better. This is partly driven by the huge wave of adjustable rate mortgages (ARM's) that come into the market in 2005 and 2006, especially "Option ARM's", which are a hybrid adjustable rate mortgage where the borrower can actually pay less than the full payment each month (meaning that these loans actually get bigger each month, which is why they are sometimes called "negative amortization loans".)
If you want to learn the full picture as to why these "option ARM's" were pushed so strongly by mortgage companies, and how a little-known accounting trick was one of the triggers for the whole sub-prime mess we're watching, just CLICK HERE.
Over the next 12-24 months as these option ARM's start to have massive rate escalations--often as high as 3-4 percentage point increases--more and more shaky borrowers are defaulting. (For my investing suggestions to capitalize on these incredible converging market forces, just CLICK HERE and go to the members page of Maui Mastermind Online members site for my latest workshop. If you're not yet a member, click here for a 30-day trial membership for free.)
Now you can understand why investing in foreclosures is going to be one of the most lucrative areas of real estate for single family investors. If, and this is a big if, if you have developed the skills and knowledge base to take advantage of the opportunity.
This brings us to the next major market trend...
Market Trend Two: Because of the uncertainty in the financial markets, it's fairly tough for many borrowers to actually get the financing they need to purchase a home. This impacts sellers (they can't find buyers), and this impacts buyers (they have trouble getting the money they need at rates they can afford), and best of all this trend is only temporary!
And this also affects investors.
For several reasons I think that this "scarcity" of loans for so many buyers will be a short-lived phenomenon. In fact, I think that over the next 6-9 months things will settle down to much more of an equilibrium point with the financial markets as it relates to residential loans. I think it's pretty certain that the pendulum will swing to the side of tighter underwriting requirements for new loans, but there will be plenty of money available to borrow.
This means that we have a reinforcing trend that's happening right now--the lack of loans for buyers has hurt real estate values. This trend reinforces the above "opportunity one" I spoke about earlier. But, and this is a mighty BIG but, this second trend is a temporary one that will get progressively less and less tight.
This shift (strong value dip in residential real estate) will be lessoned when money becomes a little less scared and a little more organized and careful, over the next 6-9 months, which will be a positive force on housing values soon thereafter. (For those of you who want to understand the deeper relationships that drive this second trend, CLICK HERE and listen to the audio workshop I recorded on this subject.)
The third trend...
Market Trend Three: The real estate market responds in with a "lag" of 6-18 months, giving the savvy invest plenty of chances to "cherry pick" great deals.
With the short term tightening of the financial markets, that means that many sellers can't easily find buyers for their properties. This temporarily hurts the value of their properties. I say temporarily because once the lending world swings back (although I still anticipate that lending requirements will be tougher than they were 6-12 months ago), the values will start to climb.
If you're smart, and that means you buy following sound fundamentals and have a cushion to ride out the sluggish market, over the next 12-18 months you'll have lots of opportunities to buy some real bargains.
In fact, if you sharpen up your creative buying strategies like lease options and buying subject to the existing financing, you just might pick up several deals with little or no money down, and with your risk intelligently hedged.
It's an interesting fact that real estate markets have "memories". What I mean is that even after the market turns, there is often a lag of 6-12 months or longer, when sellers still are acting as if they are in the midst of a famine. I watched this happen on the east coast before this last run up in properties; I watched this happen in southern California in the mid-90's; and I'm predicting the same thing will happen again this time.
Again, however, I want to stress the need to be smart about how you take advantage of this opening.
The good news is that you have a little time to learn more. I recommend that if you don't have a solid investing background (and you have chosen residential real estate as your wealth vehicle) that you invest the next 6-12 months to get that education.
There you have a brief overview of these three market trends that I think will make some savvy investors a TON of money.
For the full and detailed workshop on these three trends and how to best capitalize on them CLICK HERE. I recorded a 40 minute workshop on this including what I think the newest twist on short sales is going to look like (and the opportunities are huge for investors who step up to the table.)
If you're not yet a member of Maui Mastermind Online, click here for a free 30-day membership. I'm guessing that you'll love it so much that you'll continue to stay a member for many years at just $9.97 a month billed to your credit card. You can cancel at any time. You've got nothing to lose and so much to gain. Join now!
Sign Up Now and Get a FREE $495 Downloadable Home Study Course!
This powerful online home study course includes eight (8) powerful modules:
Wealth Secrets from Maui Mastermind?-The World's Most Exclusive Wealth Retreat? (4 Classes)
Financial Fluency Starter Kit! (3 Classes)
The 5 Keys to Building a Level Three Business! (2 Classes)
Preemptive Tax Strategy? Increase Your Cash Flow by Radically Reducing Your Tax Bill! (2 Classes)
Investing Secrets to Profitably Invest in Real Estate! (5 Classes)
Introduction to Time Mastery--How to Break Free of the Time and Effort Economy! (2 Classes) Negotiation Strategies to Close the Deal! (3 Classes)
The Greatest Wealth Secret Ever Discovered! (2 Classes)
That's over 16 hours of powerful wealth training you can download or watch over the web!
And the past part is that even if you decide to cancel (which I can't imagine you will when you watch, read, and listen to all the great how to, cutting edge information on the member site) you get to keep the course as my free gift to you for giving membership a good faith go!
You have nothing to lose and so much to gain so I hope you give it a try. Click here to register now!
I hope you enjoyed what you learned and that I sparked some deep thinking on your part.
My best to you,
David Finkel
P.S. We still have 34 spaces available for that free 90-minute tele-class on Thursday,
September 20th at:
5pm Pacific
6pm Mountain
7pm Central
8pm Eastern
The tele-class is titled "The Seven Bottom Lines of Investing for Maximum Passive Income" and is available this one-time-only for the first 250 registrants. There are currently 34 spots open and they will be going fast so if you are interesting in learning how to increase your passive income make sure you REGISTER NOW!
The call will not be repeated so if you want to attend, make sure you register while there is still room! Click Here to register.
Hi Everyone,
I hope your week is going well. It's been a bit rainy in Virginia the past few days, which was a nice change of pace. Heather and I even took our dog Blue for a run in the woods the other day in the rain. It was very refreshing!
Today I want to do something a bit dangerous, which is to go out on a limb and talk about three MAJOR market trends that will lead to some big investment opportunities that I am seeing coming in the next 6-18 months.
It's always risky to do that because the world is always so quick to say "I told you so" if you're wrong, but I'm going to do it anyway because for some of you it might just make a BIG difference in your investing returns.
Now I'm going to have to be fairly brief in this letter, but I've recorded and posted a special audio workshop going into great detail about these three market trends, why they are happening, and most importantly, how you can position yourself to take full advantage of the opportunities on the membership site for Maui Mastermind Online. (Keep reading for the links and for instructions for those of you who are not yet members to follow to get immediate access to the site as a free 30-day trial membership.)
Market Trend One: A continuing wave of foreclosures coming over the next 24 months.
One of the best things about real estate compared to most investments is the relative slow pace at which things change. For the savvy investor, you have several months or longer to anticipate and prepare to take advantage of a coming trend.
Well this is one of those times. We're seeing the middle part of the foreclosure curve and it only is going to get more pronounced over the next 12-24 months before it starts to get better. This is partly driven by the huge wave of adjustable rate mortgages (ARM's) that come into the market in 2005 and 2006, especially "Option ARM's", which are a hybrid adjustable rate mortgage where the borrower can actually pay less than the full payment each month (meaning that these loans actually get bigger each month, which is why they are sometimes called "negative amortization loans".)
If you want to learn the full picture as to why these "option ARM's" were pushed so strongly by mortgage companies, and how a little-known accounting trick was one of the triggers for the whole sub-prime mess we're watching, just CLICK HERE.
Over the next 12-24 months as these option ARM's start to have massive rate escalations--often as high as 3-4 percentage point increases--more and more shaky borrowers are defaulting. (For my investing suggestions to capitalize on these incredible converging market forces, just CLICK HERE and go to the members page of Maui Mastermind Online members site for my latest workshop. If you're not yet a member, click here for a 30-day trial membership for free.)
Now you can understand why investing in foreclosures is going to be one of the most lucrative areas of real estate for single family investors. If, and this is a big if, if you have developed the skills and knowledge base to take advantage of the opportunity.
This brings us to the next major market trend...
Market Trend Two: Because of the uncertainty in the financial markets, it's fairly tough for many borrowers to actually get the financing they need to purchase a home. This impacts sellers (they can't find buyers), and this impacts buyers (they have trouble getting the money they need at rates they can afford), and best of all this trend is only temporary!
And this also affects investors.
For several reasons I think that this "scarcity" of loans for so many buyers will be a short-lived phenomenon. In fact, I think that over the next 6-9 months things will settle down to much more of an equilibrium point with the financial markets as it relates to residential loans. I think it's pretty certain that the pendulum will swing to the side of tighter underwriting requirements for new loans, but there will be plenty of money available to borrow.
This means that we have a reinforcing trend that's happening right now--the lack of loans for buyers has hurt real estate values. This trend reinforces the above "opportunity one" I spoke about earlier. But, and this is a mighty BIG but, this second trend is a temporary one that will get progressively less and less tight.
This shift (strong value dip in residential real estate) will be lessoned when money becomes a little less scared and a little more organized and careful, over the next 6-9 months, which will be a positive force on housing values soon thereafter. (For those of you who want to understand the deeper relationships that drive this second trend, CLICK HERE and listen to the audio workshop I recorded on this subject.)
The third trend...
Market Trend Three: The real estate market responds in with a "lag" of 6-18 months, giving the savvy invest plenty of chances to "cherry pick" great deals.
With the short term tightening of the financial markets, that means that many sellers can't easily find buyers for their properties. This temporarily hurts the value of their properties. I say temporarily because once the lending world swings back (although I still anticipate that lending requirements will be tougher than they were 6-12 months ago), the values will start to climb.
If you're smart, and that means you buy following sound fundamentals and have a cushion to ride out the sluggish market, over the next 12-18 months you'll have lots of opportunities to buy some real bargains.
In fact, if you sharpen up your creative buying strategies like lease options and buying subject to the existing financing, you just might pick up several deals with little or no money down, and with your risk intelligently hedged.
It's an interesting fact that real estate markets have "memories". What I mean is that even after the market turns, there is often a lag of 6-12 months or longer, when sellers still are acting as if they are in the midst of a famine. I watched this happen on the east coast before this last run up in properties; I watched this happen in southern California in the mid-90's; and I'm predicting the same thing will happen again this time.
Again, however, I want to stress the need to be smart about how you take advantage of this opening.
The good news is that you have a little time to learn more. I recommend that if you don't have a solid investing background (and you have chosen residential real estate as your wealth vehicle) that you invest the next 6-12 months to get that education.
There you have a brief overview of these three market trends that I think will make some savvy investors a TON of money.
For the full and detailed workshop on these three trends and how to best capitalize on them CLICK HERE. I recorded a 40 minute workshop on this including what I think the newest twist on short sales is going to look like (and the opportunities are huge for investors who step up to the table.)
If you're not yet a member of Maui Mastermind Online, click here for a free 30-day membership. I'm guessing that you'll love it so much that you'll continue to stay a member for many years at just $9.97 a month billed to your credit card. You can cancel at any time. You've got nothing to lose and so much to gain. Join now!
Sign Up Now and Get a FREE $495 Downloadable Home Study Course!
This powerful online home study course includes eight (8) powerful modules:
Wealth Secrets from Maui Mastermind?-The World's Most Exclusive Wealth Retreat? (4 Classes)
Financial Fluency Starter Kit! (3 Classes)
The 5 Keys to Building a Level Three Business! (2 Classes)
Preemptive Tax Strategy? Increase Your Cash Flow by Radically Reducing Your Tax Bill! (2 Classes)
Investing Secrets to Profitably Invest in Real Estate! (5 Classes)
Introduction to Time Mastery--How to Break Free of the Time and Effort Economy! (2 Classes) Negotiation Strategies to Close the Deal! (3 Classes)
The Greatest Wealth Secret Ever Discovered! (2 Classes)
That's over 16 hours of powerful wealth training you can download or watch over the web!
And the past part is that even if you decide to cancel (which I can't imagine you will when you watch, read, and listen to all the great how to, cutting edge information on the member site) you get to keep the course as my free gift to you for giving membership a good faith go!
You have nothing to lose and so much to gain so I hope you give it a try. Click here to register now!
I hope you enjoyed what you learned and that I sparked some deep thinking on your part.
My best to you,
David Finkel
P.S. We still have 34 spaces available for that free 90-minute tele-class on Thursday,
September 20th at:
5pm Pacific
6pm Mountain
7pm Central
8pm Eastern
The tele-class is titled "The Seven Bottom Lines of Investing for Maximum Passive Income" and is available this one-time-only for the first 250 registrants. There are currently 34 spots open and they will be going fast so if you are interesting in learning how to increase your passive income make sure you REGISTER NOW!
The call will not be repeated so if you want to attend, make sure you register while there is still room! Click Here to register.
posted by David Finkel at 5:55 AM
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