Wednesday, August 30, 2006

Become a Tycoon

Now here is something to run through your values filter..... Let me tell you about a conversation I had over the weekend.

We were walking along the harbour in Bellingham Washington ( one of the most beautiful places in the Northwest) and I was telling my friends about the alarming statistics I had been hearing and how they could be used to create opportunities.

US consumer confidence is plunging as people see their property values decline, debt increase, energy costs increase, and jobs become unstable. The "Experts" out there are still telling us ( the great unwashed) that there is no need to panic. But, as I've said before, the fund managers are filling up their cash reserves, buying bonds, and picking through their equity portfolios like grandma at the day-old bakery rack! Of course, if you have had to put up with my rants over the past few months, none of this should surprise you. But one statistic really made me stop everything I was doing for a while.

I heard an analyst calmly mention that the banks were getting ready for a 34% default rate in mortgages. 34%???? I'm not sure just how calm I would be if I was a loans officer looking at that in my portfolio. But the Powers That Be all consider this to be a great thing. This morning I just heard another analyst praise the Fed for "cooling down the housing market" through interest rate hikes.

So what do these people know that we don't know? Well, they know how to use other peoples' pain for their profit. Where do you think all that hoarded cash is going to go when people start defaulting on loans and start walking away from their homes? "Honey, meet the new landlord!"

Oh yes, the newspapers will be filled with experts telling you how that housing property is one of the worst investments you can make, etc., etc......... but somebody will be buying up all those properties and renting them out until the market improves. This is what the tycoons of the great depression did. This is what Donald did. This is probably what Oprah is doing since she has made it clear that one of her favorite hobbies is buying property. So why don't you get ready to do the same thing?

IMPORTANT UPDATE ( 26/03/2010):
As you know, everything I wrote above has come true.  There are now indicators that a second wave of opportunity will be coming.  The forclosure system is plugged up because of political interferance.  People who have been given extensions are now back in default status.  The politicians will not touch this sensetive area until after the elections....if then.  It is your opportunity to get some planning and pull together a trusted team of advisors.

And now for something even more frightening and of course an opportunity for people who will act:
Pensions are at risk.  People have been using their houses as live in pension plans.  Also they have been lulled into believing that "buy and forget it" mutual fund pension savings will provide future income.  Politicians are once again basing policy on backward looking data.  There is a way forward but that will have to wait for another blog post.  

Now back to our walk along the harbour:

My friends looked disgusted when I suggested this. It was Not Ethical to prey upon the misfortune of others!

I asked them to step back and look at the big picture.

Picture a family who is being squeezed out of their current situation. They gambled on good times being there forever. Now things are tight and they have to step back for a while. What if someone could take away their biggest debt burden and still give them a nice place to live?

When things got better, this family could get back in the housing market without all the problems associated with bankruptcy or the health problems that come with severe stress. Yes they might be a bit bruised from the experience, but they would be back on track. And the person who bought the house during the depressed market would be rewarded for keeping the property in good shape and showing a strong faith in the future of the nation.

Does that sound so bad? Well, that is for you, and my friends to think about and decide.

My friends then began asking....." What is the best way to take advantage of this situation? What do you need to know? Who can you trust? Where can you get the money if you are in the same boat as the people who are losing their homes?????" Question after Question poured out.

My answer is to go to people who specialize in this area, and in ordinary people.

One lady I've been watching for a while is Laura Langemeier. She has a unique system which should work in the upcoming economic environment. Of course she has had some spectacular successes in the past; but the strength of her system is it's adaptability to changing variables. She has a book out, as well as seminars. You might start your exploration with her.

Laura also emphasizes team work. And I agree. If I were to try to take advantage of a soft real estate market, I would team up with professionals.

One trick to finding more information is to look at the amazon page which features Laura's book and then see what other items people have bought.  There have been comments on "being suckered into buying her course".  Don't get suckered into anything.  Do your own research and then see what fits for YOU.

 But that is another post I guess. I've had a few emails telling me that I'm a bit long winded. Oh well......

'til next time



Anonymous said...

Her name is Loral Langemeier, and like most of the teaching the stupid to get rich, she makes all her money from book and game sales.

Unknown said...

Yes her name is Laurel. My mistake, sort of... I have found that many people search for Laura and come here. Also, regarding her program, I believe she is earnest. I've studied a lot of income methods. Most are just not for me. They do not align with my passions or abilities. But I've seen others take them and thrive. To each his own. But thank you for your opinion. It is valued.

Anonymous said...

Interesting post. I want to run a business, so I'll have to keep this in mind. I'm leaning towards buying a business instead of starting one from scratch, but I haven't had the best luck looking for one to buy. Any suggestions? Thanks.

Unknown said...

There are Successful ethical people who have discovered that their gift is in start-ups. They get an idea and get an idea and love the thrill of getting a business going, but lose interest after that. SO they sell and move on. The problem is that is does cost a bit to buy these up and running businesses. However,there is a way to do it without great expense.
Find an area that you are passionate about.
Build a profile which features your management capabilitites.
Search the field of interest for successful entreprenerial owners who you think fit the profile of a "build and runner". Approach that person with an offer to purchase gradually with a cash and share arrangement. They will then have some play money at first, and a guaranteed income off of the existing business and you will have a share buy back scheme so that eventually the business is solely yours. Hope this helps, Colin

Anonymous said...

Colin -- Yeah, it does help. Thanks. I agree, I find a business I'm passionate about and won't lose sight of. I did do more research, and I actually able to find a business with a lot of potential through Good place to find a business on the Internet. I hope it pans out well.