Coach Mitch’s REFLECTIONS
The world is upside down
There is a perception gaining hold that the world heading to a cataclysm, as least the financial world. Commodities are up, like oil, gold and other basic metals, food cost is up, inflation is up, unemployment is up, the money supply is way up, interest rates are up; foreclosures are up, bankruptcies are up. Out of necessity, to cope with the spiraling economy, political promises are up, which is directly related to a feeling of greater insecurity, and therefore, fear is up.
Some things always stay the same
Opportunity is abundant during hard times. Those who understand markets comprehend that profit is MADE when purchasing and profit is COLLECTED when selling.
This is so in any market condition. It is an axiom that the greatest profits are made when markets are falling because many people are selling out of fear. Often, the mood of sellers is that they MUST sell; taking anything that they can get because they believe that tomorrow the price will be even lower. No one knows when a market bottom occurs, just like no one knows when the market will top out. That lack of knowing, that insecurity, is what causes our stress.
The deeper the decline the greater the discount
This axiom is also apparent. Humans respond wildly when fearful. The greater of any condition the greater the human response. Think about it. Either we cower, with much apprehension, or we respond without thinking, in panic.
The steeper the incline the quicker the purchase
During inflationary times, the opposite axiom is in effect. People purchase irrationally due to the belief that tomorrow their purchasing power will be less and therefore they MUST spend today. Many of us have heard that during the German hyperinflation after WW1, a barrel of Deutsch Marks was needed to purchase one loaf of bread, as is depicted in the famous cartoon. This is panic BUYING.
This site is interesting. http://coinmill.com/USD_calculator.html#USD=1 It shows the conversion rates of currencies around the world. Those currencies that are wildly higher than the US, at one point had a significant inflation, just like we are having currently. A US $1 is equal to 1250 Italian Lira. Italy denominates in Euro’s now and that conversion is: 1 Euro equals 1960 Italian Lira, showing that the Euro is about 50% more valuable than our own dollar. Sad.
Opportunities also abound in times of panic buying. In real estate terms, this is called a “hot market.” Prior to the foreclosure mess, we had a “hot market” in much of the country for several years. Talk to any Realtor; they will wistfully speak of houses that were newly listed and offers were stacking up immediately. Many homes were going for $10K, $20K, or $30 thousands over the listing price. If you owned or controlled property during the boom in Florida or Phoenix or Colorado or California, etc. then you did very well indeed.
Fear leads to hurried decisions
When things happen that are out of our control we respond with fear. At these moments we are very vulnerable. We do not feel that we have options or we can’t think of any that will be effective. Therefore, we grasp at any life saver, thankful that there is something, anything available to help the situation. The human mind works this way. Few of us are calm and collected under pressure. The greater the pressure, the more animated and out of control we become. The closer we are to a deadline, the greater the chance that we will act in panic and not in our own best interest.
You can follow the crowd or you can lead the parade
You must create your own path if you are to attain any degree of success. All of US are unique but we all share a culture, education, geography, similar feelings, outlooks, desires, and fears.
We all want acceptance, honor, respect, success, etc. However, how many of US understand that in order to get respect you must first be able to give respect. That is what is meant by “earning the respect” of others.
The first thing that you must do is to pick the area of your expertise. Most of US simply stumble into a vocation or a situation. What if you were to be affirmative, determining your future, as much as you can? The outcome would almost certainly be better for US.
More empathy for the seller equals greater good feeling towards you
Don’t forget, if a seller does not like you or he thinks that he is being taken advantage of, he will cut off his nose and spite his face rather than let you make a significant profit. Be empathetic. Remember, you could be just one bad decision away from being in a precarious position yourself.
Now is the time to seek UP-portunity
Think of the situations that currently afford themselves, and act. Comment on your own examples.
Buy / control real estate in areas that are hurting economically. Make sure that you get a VERY significant discount, because the market is still going down. In areas where real estate is stable, it will be easier to negotiate sizable discounts. In areas that are “hot,” to ensure future prospects, seek out tax delinquent sellers at the edges of the “Path of Progress.”
Coach Mitch’s “Ridiculously Simple System…” shows how to focus in on the “most motivated of all motivated situations.” In areas that are depressed, it is easy to get a “good deal.” However, that often means that you are paying 80% of Fair Market Value (FMV). That is not a good enough deal, especially in a soft market.
Coach Mitch’s system =UP-portunity
In today’s real estate climate, the seller is often “willing” to be flexible. It is also necessary to look at situations where the seller is “able” to sell at a severely discounted price, e.g. 10 – 30% of FMV. These unheard of prices are typical when dealing with tax delinquent real estate and utilizing
Coach Mitch’s “Ridiculously Simple System…” I don’t know of any other system that can consistently give you this kind of pricing.
See Coach Mitch’s “Ridiculously Simple System…” ™ for details.
See you at the top,
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