Foreclosure and Politics

February 29th, 2008

I receive a number of publications that only talk about the foreclosure market. In one of these publications their was an articles about the current presidential canidates position on the trouble people are facing from mortgage default. To give a very brief over view, Hillary backs a 100 billion dollars cash give away, as does Obama with a 75 billion dollars bail out. On the other side McCain thinks tax cuts are necessary to curb the crisis. I think all three of these outlooks are laughable. And I say HAhahah…to them. Market analyst are predicting a 4 trillion dollars fall out, that is roughly 25% of the countries GDP. I have heard the FED telling Americans it will be about 400 billion dollars, I am stating they will be wrong. America has suffered through a rose colored inflation real estate boom. Now people are going to pay for their assumptions, for the amount of real debt that are in, and how it was never affordable. It is tragic to think of the huge homelessness potential, the loss of millions of jobs, and entire towns going bankrupt due to the loss of tax revenue from tax paying home owners.

I tell my clients to help secure their future through this economic down turn by buying Gold, Water, Wal-Mart, or Real Estate. I personally believe investing in real estate will be the best place to keep your assets. Why? Because there is no more land. The earth is constantly creating more minerals; might take a while; but she is doing it. Wal-Mart now accounts for 2% of the U.S.’s G.D.P., so they are not going anywhere soon. As for water it’s something we can’t due without. People are not stopping having babies, companies and cities are not getting smaller. What is the commodity that will always need so that humans may survive? Land. Space is precious and currently I believe over the next fours years it will be cheaper for an able person to purchase more of that limited resource than could have in the past 20 years.

Here is where I think there actually will be opportunity, unlike anything in American economic history, it is the ability to create security for the rest of your families life. I say family, because real estate ownership lasts as you or your Will deems it too. The opportunity is foreclosure real estate investment. There is starting to be more and more property in the U.S. that is being sold at far less than what is it worth. What happens when you buy low, and then sale high? You make profit. Selling at top market value is not feasible right now, but in a few years, when the economy recovers, you not only will make money from the few years of ownership. Your profit margin will be far greater then other comparable real estate. I Believe for the first time in close to 40 years real Americans that have saved their money; and not put themselves in the robbing Peter to pay Paul scenarios; can achieve generational wealth.

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