Now is the time to invest. Post 108

Coach Mitch’s REFLECTIONS

 

Timing is everything

How many times have you heard this cliché? Too many times, right?

We are told by experts that a stock is “ripe” and ready to move – timing. We see a fad, like the pet rock, and wish that we had created something like it to take advantage of the era – timing. Someone gets a job because they were the right person, in the right place, at the right – time.

Good timing is often based on good judgment

Isn’t this true? Good fortune or good luck often occurs to those who work hard or who work smart. In exactly the same way, good things happen to those whose good judgment has put them in a position to take advantage of a situation.

Good judgment is based on good anticipation

Anticipation is the key. Each situation can only take a few directions; forward, backward or neutral. Your fate is determined by your ability to anticipate that a situation will occur and to be ready with answer(s). Should you not be prepared, then you will react without thinking. How many times have you wished that you had done something differently? Analyzing situations should become second nature.

The stock market went down 1500 points the other day and closed up almost 1000 points just a few days later. The down swing was predictable, as was the upswing. Had you had your margin account at the ready, and had you pulled the trigger, you could have made a year’s income in one day.

Good timing is no accident

We can often be cavalier; however, sometimes it is important to look both ways before crossing the street because that big truck could be coming to run us down. The point is – we must recognize when we should take a certain action. We can prepare, but nothing replaces action. Pulling the trigger, doing the deed, hunkering down, sucking it up, getting it done – these are all phrases for one thing.

TAKE ACTION

NOW IS THE MOMENT TO TAKE ACTION. The stars are aligned. The correct forces are arrayed. The time is right. There will never be a better time than now to purchase or control tax delinquent real estate.

Why is Now the Time to Buy?

Countrywide was sold for pennies, Lehman Brothers and Washington Mutual just went down, FANNIE MAE and FREDDIE MAC have been nationalized, and AIG, Bear Sterns, and several other major financial institutions have been absorbed by other firms. The Fed’s Discount Window is open to virtually anyone. Major legislation slated to “rescue” the economy will be passed in the near future time but the damage is done and more damage is on the way.

The salient facts

Significant inflation is around the corner and so is a recession. Why is this important? Inflationary times cause certain hard assets to increase in value and recessions force many people to part with their hard assets at sharply reduced values.

This is what will happen

• Gold, certain commodities, i.e. hard assets, will hold or rise in value. This is historically true. Rapid and significant inflation causes our money to be worth less tomorrow and therefore we are forced to spend it today. Devalued dollars will be buying certain assets at higher prices.

• The Stagflation (remember that word) of the 1980’s will reoccur. Stagflation is a very difficult economic situation in which inflation and economic stagnation occur at the same time. We could be in for very difficult times.

• Stagflation results when an increase in the price of oil raises prices in other goods and slows the economy at the same time.

• Stagflation results when excessive growth of the money supply and the regulation of the markets causes business to retract as prices rise; which caused the wage and price controls of the 1970’s.

• Stagflation is very hard to fight because policies usually aimed at increasing growth also increases inflation, while policies used to fight inflation also furthers the economic decline.

• Inflation will probably return with a vengeance. Lenin was right. “There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”

• Don’t be surprised if a President Obama reinstates draconian Wage and Price controls which will dramatically increase inflation when withdrawn.

• A recession will increase the unemployment rate significantly. How high it will go is anyone’s guess? Unemployment could certainly go to 10% or 12%, up from the current 6%.

• Currently, 95% of mortgages are being paid. However, because of a lost job, many will not have the monies to pay for their property and they will go into foreclosure. In addition, many more properties will go into property tax delinquency.We are already seeing a virtual doubling of the number of properties that are delinquent. For example, Dade County went from 49000 property tax delinquencies in 2006 to 87000 in 2008.

• Even though there will be price inflation, real property will be lower in value because of the huge number of available properties in foreclosure. The high number of property tax delinquencies will significantly add to this number. Lower real property prices will continue until the overage in housing stock is alleviated.

• Certain local real estate markets will be strong. There will still be plenty of folks who will need to sell in these stronger markets, however you will have to look at more situations and be more discriminating.

• People will sell their possessions at reduced prices, just to try and buy necessities. This is already the case. Merely look at the number of people trying to sell personal possessions on Ebay. Check the price History and see that prices have come down, and sharply. Although prices typically rise during inflationary times, desperate folks, needing to sell, will take whatever they can get. This fact leads to panic selling.

• Because obtaining credit will be difficult, a premium will be paid to anyone who will carry the financing on real property. Properties without mortgages will be most valuable precisely because there is no mortgage needing to be paid off. Desperate owners can raise some capital and rid themselves of stress by selling their tax delinquent properties at rock bottom prices. They will even be forced to carry the paper because loans will be so hard to acquire.

• The selling of property will be made more difficult because of a lack of easy financing. Only those who can carry the financing will be able to sell quickly. These sellers will even be able to get a premium on the price because of the scarce financing.

The most important idea

Now is the moment to accumulate property at very low prices. Now is the time to lock in low prices with Coach Mitch’s “famous $1 Option.” to control the property. If you can hold onto the property for one year, then the market should be much stronger and you might be able to sell for tremendous profits; if not, then all you are out is $1.

The time is NOW

Coach Mitch’s “Ridiculously Simple System…” will fit the upcoming scenario perfectly.

This system focuses on the most motivated of sellers, the property tax delinquent. They MUST sell. Credit will not be easily available and therefore selling will be difficult. By concentrating on free and clear property, you will be able to purchase because the seller has the equity to give away.

These times and circumstances require you to get property at severely reduced prices. However, you will be able to sell because you can sell with owner financing. And, your ability to carry the financing will allow you to sell quickly and often at a premium in price or interest rate.

Coach Mitch’s “Ridiculously Simple System…” is the only system that allows you to buy at ridiculously low prices and then sell at below market pricing while still being able to make a high amount of profit.

Take advantage of the timing.

See Coach Mitch’s “Ridiculously Simple System…” for details.

G-d bless,