The R-word has finally been accepted and embraced by the economists. The country, and for that matter, the world in undergoing a recession of unprecedented proportions. This has led to massive job losses and under-employment in many industries. By the way, did you get your bail out like some of our “too big to fail ” industries received from the federal government? The explanation was that if these extra-ordinary measures had not been taken, the country would have gone into an even worse depression than that of the last century. Desperate times called for desperate measures.
Personal Net Worth
There was a time when the major portion of a person’s wealth was determined by the equity he has in his home. Many homes were bought at the height of the inflation for very high prices. However, since 2005, when the housing bubble burst, home values have been drastically revised downward, leaving most people with drastically reduced equity or underwater mortgages, which means, they owe more than the house is worth.
Many people have walked away from their houses. The banks have foreclosed on many others, due to their inability to pay, due to unemployment or under-employment. Others have made a business decision, vis-a-vis, the current value of the house and the size of their mortgage payment. There was a lull inforeclosures being processed due to the banks were taken to task over their robo signings. This is where the paperwork was rushed through, without thorough review and a lot of information omitted, resulting in people being displaced, sometimes unlawfully. Recently, there was a lull in foreclosure processing but it was announced a few weeks ago that foreclosures are now scheduled to return to the heightened pace. This means more houses will be on the market for the smart investor.
Hope and Optimism
During the last major depression, more millionaires were created, up to that time, than at any other time in the history of the United States. More innovative product and service ideas seem to come to life during that period of perceived economic doom and gloom.
In 1849, there was the California Gold Rush, there was gold in those hills. Many people had dreams of making a fortune, prospecting for gold. Many people did and many didn’t. Some found their fortunes in other things, selling mining equipment, like shovels and pick axes, heavily marked up. Others like Mr. Levi, found that he had too much of the tent making material left over, so he created the coveralls, now known as Levi Jeans.
So it is with this recession in the housing industry. There is a new gold rush in rental properties, taking place right now, as we speak. There is a glut of newly constructed and recently vacated houses available for a quick sale. Many of those bank foreclosed houses and empty, new, contractor built-houses, are available at great prices. This is a great opportunity for an individual to now create riches with rentals. People have to live somewhere and the owners of rental properties will do very well in this new landscape.
Start building your rental real estate empire with FREE information from: http://rentalsfromsam.com
You will get information on: 1. The 2 biggest deal breaking mistakes 2. The best type of financing to get 3. What type and where to buy rental property 4. How to get started today, own your first rental as soon as tomorrow
Get a FREE 7-day eCourse on Riches with Rentals and more at: http://rentalsfromsam.com
Sam A Belnavis
This article is free for republishing