I know, I know - I'm insane for thinking that the economy is a ponzi scheme and could (will) collapse. Of course, I'm starting to be in good company, now with Bernanke, Greenspan, Marc Faber, Bill Gross, Peter Schiff, Ron Paul, Judd Gregg, etc, etc, etc all basically coming to the same conclusion.
Notice that he said that fiscal affairs ARE THREATENING the outlook for recovery from recession - not that they COULD THREATEN?
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
16y
Originally posted by MikeOH:
How will this affect your real estate business?
For anyone who is just now starting to think about how the economic situation and outlook are affecting their real estate business (or any business, for that matter), it's probably WAY too late...
Anyone who didn't modify their business (or at least evaluate it to determine its sustainability) two, three or four years ago has probably already gone out of business or is getting close...
Which is probably why there are a lot fewer investors now than there were a couple years ago...most people aren't smart enough to re-evaluate their business in the face of changing economic circumstances. If they had, they'd be thriving as much now as they were then (as the rest are)...
Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
16y
I have no idea how it will affect my business. I THINK I'm pretty well prepared.
food
water
cash
gold,silver
free and clear RE in one entity
mortgaged to to max RE in other entity
guns & ammo(this one was for Mike Oh
Some of my assets are affected by inflation nicely, some are affected nicely by deflation, and the rest are for catastrophes. With all that, if my # is up, my # is up..... Rich heading for Caribe today. Bye
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
16y
Originally posted by MikeOH:
How will this affect your real estate business?
For anyone who is just now starting to think about how the economic situation and outlook are affecting their real estate business (or any business, for that matter), it's probably WAY too late...
Anyone who didn't modify their business (or at least evaluate it to determine its sustainability) two, three or four years ago has probably already gone out of business or is getting close...
Which is probably why there are a lot fewer investors now than there were a couple years ago...most people aren't smart enough to re-evaluate their business in the face of changing economic circumstances. If they had, they'd be thriving as much now as they were then (as the rest are)...
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
16y
Hi, this is the same as a corporation or an individual that becomes highly leveraged and the ability to borrow is deminshed. In order to obtain additional credit interest will go up. "are threatening" does not mean "is causing"!
How does a corporation or individual get out of that position? Through growth with a balance of cutting non-essential expenses. IMO. For growth there must be stimulus, something to push forward. Even though there is growing debt, most to interest on debt, I believe there is some belt tightening in government, perhaps not enough, but you can't back out on committments either, health care and war. What I know will kick start our economy out of this situation is each and every individual and business to act in a manner that contributes to growth. There is the psychological effect that one person has to another telling them the glass is almost empty as opposed to saying we now have more room for growth and prosperity. Growth begins with individual attitudes which carries us to action, spending and hiring. I think there are those who are willing to drive the country into despair to promote political agendas, they won't really be effected.
I won't be effected until the government falls apart and at that point I'll probably have to get off my tail end to protect and defend. I'm bullet proof as Rich stated.
The Olympics are on and I'm an old athlete. Every race I went into was with the frame of mind to win it, not just to run the race, but to pass everything that moved on that track, to blow them away. I seldom lost. I owed that attitude to my team mates and coach, to be in the right frame of mind to win before each race. What are you telling your team mates? Bill
Real Estate Investor · StL, MO · Member since 2008 · 294 posts · 152 votes
16y
The way I look at it, the $$ the Fed is printing is fake as they just added some pixels to a computer screen. I will use that funny money to buy physical properties. The $$ I receive in rent is REAL money as someone had to do something productive to earn that money. So my entire RE business is a response to this situation as it is taking "fake" money and turning it into "real" money for me. If inflation goes up, rents go up. If unemployment goes up, I evict the laid off and move in the employed (remember, 25% unemployment means 75% were employed). If the dollar is destroyed, I charge rent in yuan, silver, gold, eggs or sea shells.
And the best part is that if the worst does not happen, I still have a profitable business in the meantime.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
16y
Originally posted by Bob Hines:
The way I look at it, the $$ the Fed is printing is fake as they just added some pixels to a computer screen. I will use that funny money to buy physical properties. The $$ I receive in rent is REAL money as someone had to do something productive to earn that money.
Not sure this makes sense. If you look at the money the Fed is printing as "fake," then how does that money suddenly become "real" just because it passes through the hands of one of your renters first?
Maybe I'm missing something obvious...if so, forgive me...
Residential Real Estate Agent · Chandler, AZ · Member since 2009 · 1k+ posts · 928 votes
16y
Not sure this makes sense. If you look at the money the Fed is printing as "fake," then how does that money suddenly become "real" just because it passes through the hands of one of your renters first?
Maybe I'm missing something obvious...if so, forgive me..
I think he means financed or borrowed money is "fake" money (not tangible) and money that goes in his account bank is "real" money (tangible). That is how I read it.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
16y
Originally posted by wheelhouse:
Originally posted by JScott:
Not sure this makes sense. If you look at the money the Fed is printing as "fake," then how does that money suddenly become "real" just because it passes through the hands of one of your renters first?
Maybe I'm missing something obvious...if so, forgive me..
I think he means financed or borrowed money is "fake" money (not tangible) and money that goes in his account bank is "real" money (tangible). That is how I read it.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
16y
Originally posted by wheelhouse:
Originally posted by JScott:
Not sure this makes sense. If you look at the money the Fed is printing as "fake," then how does that money suddenly become "real" just because it passes through the hands of one of your renters first?
Maybe I'm missing something obvious...if so, forgive me..
I think he means financed or borrowed money is "fake" money (not tangible) and money that goes in his account bank is "real" money (tangible). That is how I read it.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
16y
Originally posted by wheelhouse:
Originally posted by JScott:
Not sure this makes sense. If you look at the money the Fed is printing as "fake," then how does that money suddenly become "real" just because it passes through the hands of one of your renters first?
Maybe I'm missing something obvious...if so, forgive me..
I think he means financed or borrowed money is "fake" money (not tangible) and money that goes in his account bank is "real" money (tangible). That is how I read it.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
16y
Originally posted by wheelhouse:
Originally posted by JScott:
Not sure this makes sense. If you look at the money the Fed is printing as "fake," then how does that money suddenly become "real" just because it passes through the hands of one of your renters first?
Maybe I'm missing something obvious...if so, forgive me..
I think he means financed or borrowed money is "fake" money (not tangible) and money that goes in his account bank is "real" money (tangible). That is how I read it.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
16y
Originally posted by wheelhouse:
Originally posted by JScott:
Not sure this makes sense. If you look at the money the Fed is printing as "fake," then how does that money suddenly become "real" just because it passes through the hands of one of your renters first?
Maybe I'm missing something obvious...if so, forgive me..
I think he means financed or borrowed money is "fake" money (not tangible) and money that goes in his account bank is "real" money (tangible). That is how I read it.