Over the past week I've been sharing some details on how there is a little real estate market "niche" in certain areas of the country where you can buy a property, fix it up and resell it (in 90 days or less), and wildly profit by doing these short-term flip deals.
As you know, I've been telling my students for years that flipping should have been an opportunity that left the table earlier this year. But something strange happened whereas the real estate buyer's market that was supposed to happen didn't happen the way "experts" stated it would. In fact, the market is in slow motion right now and I'm guessing it has to do with fear of this "second bubble" that financial analysts have been brainwashing the American public into believing.
Will there be a "second bubble"?
I don't think so.
If you analyze history and how economics work, you'd realize that after a heavy-duty recession, we usually see an economic growth spurt for awhile. Our last similar economically devastating period started with the stock market crash in the fall of 1929. Following this period, we had a lot of banks and lenders tighten up on lending out to businesses mostly which completely ceased economic growth that businesses provide to the economy by giving people jobs, pumping out product, and (of course) selling product.
In order to have a successful economy, economic basics always have to apply:
1) People have to have jobs because they can't buy anything without an income.
2) Businesses have to have access to lines of credit for raw materials, supplies, being able to extend credit to other businesses (net terms on wholesale orders), and for business growth (including hiring more people, buying machinery, buying a larger building, etc.)
3) In order for people to have jobs, private businesses need access to this credit through banks and lenders. When an economy shrinks, endures any shift resulting in "insecurity," or banks see losses (i.e. the foreclosure windfall), they pull back on extending critical credit to businesses. And when businesses fold, there are no jobs available. (See #1 for the reason why jobs are necessary if you forgot.)
4) The government itself needs to employ people in a larger capacity. This can be employing people through the federal, state, and local levels as well as giving government contracts to companies for federal, state, or county projects such as construction, fixing the roads, building bridges, etc. If you're not sure the state of our economy, take a look at government building projects and make a mental note of whether they're happening in your local area or whether it seems that it's taking a lifetime for them to finish a bridge or part of the freeway where you notice there are never workers (and it's always "under construction"). This is a sure sign that things aren't good in the economy. On the other hand, when you see construction everywhere and there are construction workers busting their ass on projects day in and day out as your driving around, the economy is starting to boom.
The way I see it, we're definitely on a pretty good upward trend to a strong economy. Unemployment is low. Retail sales are up. Real estate sales are up.
Things are getting good. (And if you don't see it this way then you're not seeing what I'm seeing!)
And the "second bubble"?
You have to have "hyper inflation" coupled with heavy unemployment (not to mention failing businesses) where people (and businesses) can't cover their debt, sinking banks and lenders in the process and collapsing the financial system. Sorry, nay-sayers, but I don't see the economy in "hyper inflation" mode right now. Housing prices aren't even going up as high as they should be right about now.
But you know whose economy is about to completely collapse to shambles: China. That's right. Good old China is about to collapse in the worst economy way, making our little "depression" of late seem like a jolly picnic in the park on a Sunday afternoon.
Will that create the "second bubble" for us? I wouldn't call it a bubble but it may cause some financial problems if we are heavily reliant on loans and credit from China. Hopefully as a nation we'll become a little more financially self reliant in the months to come before they take the hit otherwise credit may tighten up again, causing us a sea of problems.
Back to you, I need to remind you that you can't be intertwined with the opinions of how our economy is going otherwise it'll drive you crazy, you'll worry, and you'll miss the boat on making money. No politician in office will have your best interests at heart and waiting around for that perfect guy (or lady) to take office isn't going to help you. At all! And waiting for the perfect economic conditions is what fools do because...did you know that there were quite a few multi-millionaires created during the Great Depression when everyone else was running around yelling about the sky falling down?? Yes, sometimes there is some kick-ass opportunity in the worst possible periods of time in our economic history.
Worrying, feeding into the "expert" views of how bad things are going to get, and making yourself sick over the completely normal trials and tribulations of our economy will donothing for you. It certainly won't allow you to see the abundant opportunity that exists in both good and bad economies.
So, now that you're no longer worried about this "second bubble" and you know that there is opportunity right now at your fingertips including some cash for you to be able to pull off your next real estate investing enterprise, now is the time to kick yourself into gear and start making money.
If you want to see copies of actual checks showing some of the proceeds that my students have made this year with this unique type of flipping I'm teaching my students,
click here. Then when you're done checking it out,
click here to get the incredible deal.
See you at the top!
Your mentor,
Monica Main
