I am a real estate investor in my 20's. I bought a foreclosed home a few years ago and completely renovated it. I now have an mls listing. I am walking away with 60k and I have two questions for you. I would really like to ask you. I am in the Midwest and 60k is a nice start in my area. I could buy 3 nice houses.each rented for 500 a month. If you could email me at dustinkdl@yahoo.com I would really appreciate 5mins of your time. I can prove my home ownership in 1 minute through auditors websi
The Loan Resets got pushed out till October 2012 so in 2012 it interest rates and prices will be the lowest going forward. You want to lock in a fixed loan and hold on. If you can buy the 3 homes in 2012, you will get a better rate and price than in 2013.
Leverage works against the owner when prices are falling but for the owner when prices are rising. See my video on "Should I buy Real Estate in January 2012?"
I have my doubts about hyperinflation myself. But if people really believe in inflation they will buy Real Estate and use leverage. If Hyperinflation, then the Real Estate will do even better prior to the Hyperinflation when the economy has double digit inflation. Zimbabwe went through stages. 1) High Single digit inflation for 20 years. 2) Double digit inflation for 4 years. 3) Tripple digit for 4 years 4) Quadruple digit inflation for 2 years and 5) the collapse.
@MrAlanKendall unless the Fed starts upping interest rates to curb the inflation. Of course, if you do what this guy suggests and we go into a deflation, you're completely screwed. However, with Ben Bernanke at the helm, we can hope he'll print enough cash to stave this. Right now, its deflation vs inflation in an epic worldwide battle. Interesting times.
@flanksteak2 We can produce all of our own goods, but we don't. Unions destroy profit, and Corporations respond to this by outsourcing jobs. Unions were good when they were saving lives, now they're destroying them by giving you 30 dollars an hour for screwing in a couple bolts. I'd do it for half that, and Indians/Chinese would do it for a bowl of rice.
US Census 1980 had the US population at 222 million. US Census 2010 had the US population at 310 million. The US population increase of 2.75 million per year soaks up the foreclosures at a rate of about 1.2 million new residences per year. In 2011 only 295,000 new homes are being sold.
Zimbabwe went through stages. 1) High Single digit inflation for 20 years. 2) Double digit inflation for 4 years. 3) Tripple digit inflation for 4 years 4) Quadruple digit inflation for 2 years and finally 5) the Real Estate collapse. The trick is to get into Real Estate 1-4 units with fixed loans under 10% in the first and early second stages. Sell late stage 2 and stage 3 and buy gold long before the collapse. The US is about to go into stage one.
but if we have hyperinflation.....who will be able to buy at that price and wont the hyperinflation soon end in the value of money being worthless? You might have made millions, but they will just be sacks full of worthless paper.
Zimbabwe went through stages. 1) High Single digit inflation for 20 years. 2) Double digit inflation for 4 years. 3) Tripple digit inflation for 4 years 4) Quadruple digit inflation for 2 years and finally 5) the Real Estate collapse. The trick is to get into Real Estate 1-4 units with fixed loans under 10% in the first and early second stages. Sell late stage 2 and stage 3 and buy gold long before the collapse. The US is about to go into stage one.
I sold my home at the peak and I bought back September 2011 at the low becaues I follow foreclosues that drive the law of supply and demand in housing. I am paying less than 1/4 the interest for a larger home. Watch and see if my futher predictions hold true. After April 2012 home prices rise 15%. 2013 5% rise, 2014 5% rise, 2015 5% rise, 2016 30% rise, 2017 30% rise, 2018 30% rise, 2019 30% rise, 2020 30% rise.
Real Estate follows the law of supply and demand and the US population is growing 2.75 million per year. Supply gets a little tighter after April 2012 when Alt-A and Option Adjutable rate loans (1.6 trillion) stop adjusting higher. At the current rate of 400,000 foreclosures being sold per year, the 1.7 million Bank foreclosures will be sold off in 2015. in 2011 295,000 new homes sold but 2.2 million in 2006. Suppy tightens and demand increases.
Zimbabwe went through stages. 1) High Single digit inflation for 20 years. 2) Double digit inflation for 4 years. 3) Tripple digit inflation for 4 years 4) Quadruple digit inflation for 2 years and finally 5) the Real Estate collapse. The trick is to get into Real Estate 1-4 units with fixed loans under 10% in the first and early second stages. Sell late stage 2 and stage 3 and buy gold long before the collapse. The US is about to go into stage one.
This all sounds fascinating to me...but I must of missed something and was hoping you'd explain.
If we start off with $20K and use your example of a $300K property...using FHA loan @ 3% = $9K down plus some closing costs etc...it wouldn't equal $20K would it??? If not, what would you do with the difference?
When Banks do not own foreclosures, demand is greater than supply and prices rise so leverage is working in favors the person taking out the loan as the propertry rises in value. When Bank owned foreclosures are rising (supply greater than demand) prices are falling and leverage is working against the person who took out the loan. I learned from the dot com bubble that increased unemployment did not affect home prices but in the sub-prime meltdown iincreased foreclosures did.
imo, inflation will go to about 10% as stated by the government (not using food or energy prices) and housing prices will drop another 33% from 2011 levels.
If you try to leverage during the rise, even if you made $7 million, that amount is dependent on people who can afford your 4 homes worth 12 million. $3 million for a home when hardly anyone can afford a $500,000 mortgage now. Wages won't be going up 6x so you'll have 1% of Americans being able to buy a $3M property. U won't find renters!
Zimbabwe went through stages. 1) High Single digit inflation for 20 years. 2) Double digit inflation for 4 years. 3) Tripple digit inflation for 4 years 4) Quadruple digit inflation for 2 years and finally 5) the Real Estate collapse. The trick is to get into Real Estate 1-4 units with fixed loans under 10% in the first and early second stages. Sell late stage 2 and stage 3 and buy gold long before the collapse. The US is about to go into stage one.
your leaving out the obvious which is the dollars will be worthless so you will have 7 million dollars that might buy you a loaf of bread. lol The bread will be worth more than any paper.
Zimbabwe went through stages. 1) High Single digit inflation for 20 years. 2) Double digit inflation for 4 years. 3) Tripple digit inflation for 4 years 4) Quadruple digit inflation for 2 years and finally 5) the Real Estate collapse. The trick is to get into Real Estate 1-4 units with fixed loans under 10% in the first and early second stages. Sell late stage 2 and stage 3 and buy gold long before the collapse. The US is about to go into stage one.
Your safer just taking the $20,000 and buying gold, silver, and seeds. leading up to and during hyper inflation no one is going to be buying any houses when they are struggling to feed themselves.
@deadcell1 Who is going to be buying gold when they are struggling to feed themselves?? Don't know how 10 people just blindly agreed with you but if you are talking economic collapse I would much rather have land
1. Property prices don't do very well in hyper-inflation. See Germany in the 20s. Lots of places in the US already restrict the amount rents can be increased and the US government has shown they'll resort to price controls
2. As inflation goes up so do interest rates. So you won't be able to refinance and buy additional houses as interest rates will be as high as inflation is.
3. Property taxes will kill all your profits if government price controls don't stop property prices shooting up.
@MrAlanKendall "My idea is to buy 1 to 4 units prior to 2016 before the increased inflation sets in."
Well, good luck or whatever. You really ought to research what happens during a hyperinflation, it's happened plenty of times. In France, they reissued the money, and then made you pay back the debt into the new cash, not the old money of Jon Law.
Four Bedroom Two Bath homes with a pool in good condition is $42,000 in Phoenix Az. There properties were around $250,000 in 2006 (Beat up 4 bedroom homes are $32,000 in Phoenix Az). For that you would only need about $15 per hour to qualify. For the properties that I am trying to buy in California, 3/4 of the rents are added to your salary (because rents are used to pay the mortgage) so the rents help you to qualify.
@MrAlanKendall I'd be kinda stuck between a rock and a hard place... the investor side of me says "GO FOR IT! YOU'LL MAKE A KILLING!", but the humanitarian in me says, "how could you profit off some poor schmuck's misfortune and sleep well at night".
Over the Years I did over 30 evictions. After I got a judgement I told the lawyer not to file anything against the tenants credit because I did not want to be mean. On several ocasions I gave tenants part of the down payment on a home to help them get it. I have no problem sleeping at night. I know that If I get possession of units that I am going to charge low rents, do repairs, not harasses tenants and help as many people as I can get homes.
@mgxmagic I dont understand why that is bad because he saves his money and invests wisely he's an asshole. be jealous that this guy is smarter then you.
im a hip hop artist, i produced a song called "Audit the FED". just type that in with J.Skillz. i'm taking the truth and politics to my music. It needs to be spread. I'm very informative and I'm also very passionate about my art and I want to share knowledge. POWER IS IN THE PEOPLE! Go check out my video, promise you, you won't be disappointed.
Zimbabwe went through stages. 1) High Single digit inflation for 20 years. 2) Double digit inflation for 4 years. 3) Tripple digit inflation for 4 years 4) Quadruple digit inflation for 2 years and finally 5) the Real Estate collapse. The trick is to get into Real Estate 1-4 units with fixed loans under 10% in the first and early second stages. Sell late stage 2 and stage 3 and buy gold long before the collapse. The US is about to go into stage one.
I believe that Gold will go to between $8,000 and $10,000 per ounce and gasoline will go to between $30 and $40 per gallon. The govt is printing massive amounts of dollars so inflation should continue.
Real estate will be safe to buy in 2012??? Are you kidding?? With FHA loan???
Even if you have 900+ (if there is such credit score) credit score, you won't get the loan unless you have more than 50% down and that's even if you are lucky with maybe with 70k or higher income per year. You wanna know how to make $1 to million? Buy a lottery. That should be a lot more effective and reliable than relying on government loans to purchase a house.
Wake up. You can no longer rely on government anymore.
I will buy properties with fixed loans under 10% and when prices jump, my properties will jump in value as well. I remember 1976-1983 when properties nationwide went up six times in price in only 7 years. Neighbors of mine bought with a variable loan and they lost their home. I remember them telling me that their mortgage went up 5 years in a row but their salary remained fixed so they were unable to pay the mortgage. Another friend paid $60,000 and sold it for $450,000 in 1983.
Zimbabwe went through stages that led to the Collapse. 1) High Single digit inflation for 20 years. 2) Double digit inflation for 4 years. 3) Tripple digit inflation for 4 years 4) Quadruple digit inflation for 2 years and finally 5) the Real Estate collapse. The trick is to get into Real Estate 1-4 units with fixed loans under 10% in the first and early second stages. Sell late stage 2 and stage 3 and buy gold long before the collapse. The US is about to go into stage 1.
Does noboy remember the 1980s? Wikipedia "Fed Funds Rate" and check out the chart half way down. Loads of buys failed when rates skyrocket to 10-19% interest!
I will buy properties with fixed loans under 10% and when prices jump, my properties will jump in value as well. I remember 1976-1983 when properties nationwide went up six times in price in only 7 years. Neighbors of mine bought with a variable loan and they lost their home. I remember them telling me that their mortgage went up 5 years in a row but their salary remained fixed so they were unable to pay the mortgage. Another friend paid $60,000 and sold it for $450,000 in 1983.
You talk of renting out these $300k, $400k, and even $500k homes. How much rent are you expecting people to pay? Who's going to pay $2,500 - $3,000 mo in rent for these homes so that your mortgage pymnts are covered?
I sold my home at the peak (see my other videos on Real Estate Timing) so I am renting. I pay $2,250 per month. When inflation hits, the rents in my area will go over $10,000 per month. When the billions of dollars that Chase, Bank of America and Citygroup have amassed start to lend, the cheap money that floods the economy will cause a stronger inflationary up-leg. Everything will easily quadruple just like inflation works in other nations.
No offense, but that's crazy! Rents will not go up to $10k per month for middle American homes. I wasn't talking about Bel Air or Manhattan, just your avg 3/2 home in your avg city. The avg income for middle America would have to increase to 1/4 million dollars a year to afford $10k monthly rents. There's NO way that will ever happen. At its peak there have been some homes in my area of central Calif that their rents increased to around $2k mo as well but to go to $10k..NO.
In 1978 Reagan complained that the Government was printing 20 million of cash per day. When foreclosures dried up in 1976, by 1987 Property nationwide had gone up 8 times. Today the Government is printing 205 times more money per day (4.1 billion) so my expectaction that prices will go up eight times between 2016 and 2027 is actually my conservative approach. Inflation works the same in every nation and when banks start to loan the money, massive inflation will occur.
That may be true, but again, there is NO way that property values and especially rent amounts can increase 8-10 times their current prices. A $200,000 home today will not be worth $2,000,000 by 2027 & definitely not by 2016. The same goes for rents. There's no way for rents to increase 8-10 times their current amounts. It's not so much that it's not possible...it's just not going to happen. Incomes for the avg American will in no way increase by the amount needed to purchase.
It took me years of looking at the numbers before I changed my mind and accepted that we are going to go into an accelerated up-leg in inflation after the foreclosures run dry. When Houses start to rise (after 2015), and the Govt raises rates to slow the inflation, they will not be able to pay the interest on the deficit and that will cause more printing of money to make payments. It is not really all that important how much it goes up, just that you take advantage of leverage.
Zimbabwe went through stages that led to the Collapse. 1) High Single digit inflation for 20 years. 2) Double digit inflation for 4 years. 3) Tripple digit inflation for 4 years 4) Quadruple digit inflation for 2 years and finally 5) the Real Estate collapse. The trick is to get into Real Estate 1-4 units with fixed loans under 10% in the first and early second stages. Sell late stage 2 and stage 3 and buy gold long before the collapse. The US isnt even in stage 1.
Question, based on your scenario, who will actually purshase these properties from you in order to make $7 million dollars? If the dollar is worthless, then it will take far more dollars to buy those properties from you, if my dollar is worthless, then I won't be able to buy much and real estate will be the last thing I will want to spend what little money I have left on. It makes more sense to buy gold/silver/ other commodities or commodity stocks.
Zimbabwe went through stages that led to the Collapse. 1) High Single digit inflation for 20 years. 2) Double digit inflation for 4 years. 3) Tripple digit inflation for 4 years 4) Quadruple digit inflation for 2 years and finally 5) the Real Estate collapse. The trick is to get into Real Estate 1-4 units with fixed loans under 10% in the first and early second stages. Sell late stage 2 and stage 3 and buy gold long before the collapse. The US isnt even in stage 1.
We are in low single digit inflation. I have heard youtube videos say we were going to go into hyperinflation in the year 2007 because of the massive amounts of money printed daily (4.1 billion) but the contraction in jobs and Real Estate is holding inflation under control. I do not know how many years it will be till stage 4, but I do know that we are no where near stage 2 and it will take years to sell off 4 million foreclosures (deflationary on Real Estate prices).
• More than 14 million housing units are vacant. That number does not include an estimated 4.8 million seasonal or vacation homes, most of which are occupied part of the year. The combined vacancy rate of almost 15% is higher than during previous recessions: 11% in 1991 and 9.4% in 1984.
• I just don't see the Government helping out the Banks again. Maybe the Banks want to sell off the remaining 4 million foreclosures?
4 years from now during hyperinflation when your bringing a duffel bag full of cash to the supermarket for a days worth of food, 7 million$ will only be worth about 20k in today's money. I suggest investing in commodities and dumping money into gold and silver mines. Buying the actual metals won't hurt either. During the peak of hyper inflation the dollar will be worth less than the paper it is printed on. Until a new currency comes out gold and silver will be the better investment.
Zimbabwe went through stages that led to the Real Estate Collapse. 1) High Single digit inflation for 20 years. 2) Double digit inflation for 4 years. 3) Tripple digit inflation for 4 years 4) Quadruple digit inflation for 2 years and finally 5) the Real Estate collapse. The trick is to get into Real Estate 1-4 units with fixed loans under 10% in the first and second stages. Sell in stage 3 and buy gold long before any collapse. The US is in stage one with plenty of time to plan.
But the jobs aren't being created. Every $1 an American spends at Wal-mart $0.90 goes to China to create jobs there. That is debt being taken on that American's can't repay because they don't have enough jobs. You're thinking of the U.S. of the past, think of the U.S. of the future more like what it is like in Africa. That is your future unless you get a politician who knows how to re-invest in the nation and create manufacturing jobs.
FHA still offers apartment loans with 30-year low fixed rate, no balloon, no prepay penalty. Up to 80% Loan To Value (LTV) for 1st position loan, plus combined LTV up to almost 95% CLTV. For small residential, you can buy with seller financing (wrap existing loan), season the title for 6 months, then get FHA refinance for more than 100% LTV. Banks love FHA loans, because it's not their money. The banks get a servicing fee, but the loan funds come from Ginnie Mae (tax payer backed).
How does that solve the problem I describe? Your plan requires housing prices to rise after 2012 due to inflation. For the reasons I described, housing will stay flat even with commodity inflation. We can't compete on the world market so there will be no increase in wages or jobs, there is WAY too much housing on the market from the 30 yr boom, and commodity prices will rise from Asia growth and speculators getting out of the U.S. (banks are using QE to buy commodities and other foreign assets).
In 1980 the US population was 227 million. In 2011 the US population is 310 million and growing. The US population is increasing at an amazing rate of 2.75 million per year. The population increase is enough to absorb the 3 million recent bank foreclosures and create demand. Not being able to compete with China is even more proof that the US Goverment will spend money on stimulus and create more inflation.
1) We have 3x more sq ft per person as we did in 1970.
2) We can't compete with Asia even with dollar 1/3 current value
3) 1)+2) = Hyperinflation will occur only in commodities
3) is true because 1) will keep housing flat & 2) will keep wages flat. Flat wages reinforce flat housing, especially since more wages will be diverted to commodities, away from housing. Besides, interest rates will rise, also killing housing. Free real estate rides are a thing of the past.
The Government raises the rates when prices are jumping, not falling. In 2005 and 2006 the fed raised rates 17 times because the housing was going up too fast. I expect rates to really jump 2016 through 2020.
How to turn $10,000 you saved into $1,000,000? Leave your office, walk to Wall Street from the White House which will take 15 minutes. Dump your $10,000 into the steel industry and walk out with $1,000,000 by afternoon crashing the entire economy.
what his "nerdness" has forgot is that $7 M u gonna walk away with,in time of hyper inflation,wont be worth anything cuz u'd probably need a couple of thousands of dollars to buy a pack of smoke.
@theWACKIIRAQI Zimbabwe went through stages that led to the Real Estate Collapse. 1) Single digit inflation for 20 years. 2) Double digit inflation for 4 years. 3) Tripple digit inflation for 4 years 4) Quadruple digit inflation for 2 years and finally 5) the Real Estate collapse. The trick is to get into Real Estate 1-4 units with fixed loans under 10% in the first and second stages. Sell in stage 3 and buy gold long before any collapse. The US is in stage one with plenty of time to plan.
Banks make fixed loans on 1-4 residential units. Buy BEFORE 2016. In 1970's Collapse, the contraction in jobs and Real Estate held inflation under control but when Foreclosures ran dry in 1976 then 5 years of Double Digit inflation hit America. Conservatively 2016 through 2020 Real Estate will quadruple in price in America and go up 8 times in Arizona, Nevada and Florida. 2016-2018 Real Estate doubles, Quadruples by 2020, six times more by 2023 and Eight times more by 2027.
I don't know if I concur with the statement that "banks make fixed loans on 1-4% for residential homes" Currently they are at 5%, and in the 70's they got up to 21% interest to buy a home.
The Government has been putting 4.1 billion/day into stimulus but Banks have not been loaning. After March 2012 the Alt-A and Option Adjustable rate loans quit adjusting higher so the Banks will ease up a little on the requirements. After the foreclosures dry up in 2016 prices rise more so Banks will ease up a lot but like the 1970's, rates will also soar. I believe that we should buy before the rise of 2016-2027. If inflation approaches tripple digits, convert to gold.
@Francesca5000 right but the purchasing power of the 7 million is not 7 million original dollars, meaning you will only get 18,000-20,000 original dollars worth of gold. Believe me, its too good to be true.
Before Zimbabwe had hiperinflation they were kicking out farm owners because of jealousy. Jealousy that the land owners had become so rich. Because the steep jump in their land prices made the farm owners extreamly rich. Before hyperinflation sets in, I can control a half a million dolllar property with a 3 1/2 percent down FHA loan. When it doubles in price I have make ten times my money, something I cannot do with Gold.
@mkmason2002 I am totally agree with you that this man is crazy. But I personally believe buying silver now is a bad investment. It's too late to buy now. Silver price will drop around $11/12 per oz and stay there for years.
What ERA are you living in DUDE? ... We're way pass the Real Estate Bubble. There is a cycle to investments just as there is a cycle to currency. Study up on it before you try offering your dimwit financial advice! Folks, ignore this #ss and buy as much gold & silver as well as other commodities (food, etc) that you can! Once the dollar collapses (which it will), then you can trade with """Certain Parties"""" to receive VALUABLE GOODS! NOT US DOLLARS ... THEY WON'T EVEN EXIST!
I sold my house at the peak in 2007. I told hundreds of people that Real Estate was going to collapse and many Real Estate agents scorned me, laughed and yelled at me. One Pastor in a Church put her hands on me and rebuked the devil and told her congregation to not listen to me, that I did not know what I was talking about. Real Estate will make make a big jump 2016 through 2027. Of course it will not make a comeback in 2011 when many loans adjust to higher payments.
The Government cannot print 4.1 billion dollars of cash per day without us having inflation. Inflation works in all other countries but currently the contraction in jobs and real estate is holding inflation in check. After 2016 (when the 4 million foreclosures are sold off) nothing will be able to hold inflation down as the Banks loan money on Real Estate and cheap money flows out into the economy.
Was this recorded in 2004???? We will see hyperinflation only in "real" assets like metals, food, fuel, etc. We will see massive DEFLATION in representative instruments like stocks and leveraged finance like mortgages. Bonds and other loans will default. In additon, you won't be able to get the financing. Real smart professor.
In Zimbabwe, they had double digit inflation for 4 years, then tripple digit inflation for 4 years, then 1 year of quadruple digit inflation and then the collapse of the Zimbabwe currency and housing in the tenth year. Since in America we are still in the single digit inflation, we are not at risk of a collapse in the next few years. Inflation will have to get into the double digits, then the tripple digits. Banks were loaning on housing in Zimbabwe right up to 2007.
The idea would be to buy property and leverage it when inflation is in the single and double digits. When inflation goes into the tripple digits, get rid of Real Estate and buy Gold. Even Peter Schiff says that property values will go up but not as fast as gold. Anyone that really believes in hyperinflation must realize that inflation will move from single digit to double digit to tripple digit to quadruple digit for true hyperinflation to cause a collapse.
Leverage is bad when foreclosures are increasing and home prices fall. When foreclosures run dry (I estimate after 2015), leverage favors the owner when prices rise.
In Zimbabwe, they had double digit inflation for 4 years, then tripple digit inflation for 4 years, then 1 year of quadruple digit inflation and then the collapse of the Zimbabwe currency and housing in the tenth year. Since in America we are still in the single digit inflation, we are not at risk of a collapse in the next few years. Inflation will have to get into the double digits, then the tripple digits. Banks were loaning on housing in zimbabwe right up to 2007.
In your studies, did you not notice the hyperinflation that occurred in Germany 1919-1923 drove spending on housing down and spending on food up? But let's say this wouldn't be the model for us if and when hyperinflation kicks in... Do you really think that wages/salaries would go up enough to support another housing bubble? Your theory is broken.
I studied the inflation numbers for Zimbabwe and the inflation did not go from zero to 1300% overnight. Let us look at Real Estate prices prior to the collapse: 1998-99 RE doubles, 2000-01 RE triples, 2002 RE triples, 2003 RE goes up six times, 2004 RE doubles, 2005 RE goes up six times, 2006 RE goes up 13 times and 2007 RE collapses. There is plenty of time to cash out the profits in Real Estate and diversify in safer investments like gold, silver and coins. I like gold.
@MrAlanKendall your also assuming someone will buy those hyper-inflated properties at their high values. In reality everyone knows those properties aren't worth that much so everyone waits and your stuck with a property that's not worth as much as you paid for it, hence the situation most people that are defaulting on loans are in. If you've got cash to cover all your bets then sure give it a try, if not just buy minerals and be safe.
The premise is that Zimbabwe took 4 years for inflation to go from double digits to tripple digits and 4 years more to go from tripple digits to quadruple digits. The ninth year hyperinflation set in with 1300% and Real Estate prices collapsed in the tenth year. We are still at single digits in America so we can take advantage of leverage when double digit inflation sets in and before tripple digit inflation sets in 4 years later.
I agree, but the news out yesterday is that inflation is tame. Inflation will not go from 1% to 10000% soon. It does it in 3 stages: first inflation is tame as job contraction and foreclousres cause deflationary pressures. Second 4 million foreclosures are sold off (I estimate around 2016) so 2016 through 2023 strong (10%+) inflation sets in. If you sell your real estate holdings betwen 2020 and 2023 you will be very rich in cash and will be able to buy Gold before stage 3.
This guy totally assumes that anyone is going to buy some overpriced house in the future. How is that going to happen when their dollar is worth crap and people simply wont be able to afford it? STFU dude.. this is nonsense.
I studied the inflation numbers for Zimbabwe and the inflation did not go from zero to 1300% overnight. Let us look at Real Estate prices prior to the collapse: 1998-99 RE doubles, 2000-01 RE triples, 2002 RE triples, 2003 RE goes up six times, 2004 RE doubles, 2005 RE goes up six times, 2006 RE goes up 13 times and 2007 RE collapses. There is plenty of time to cash out the profits in Real Estate and diversify in safer investments like gold, silver and coins. I like gold.
The program you describe is what led to the mortgage meltdown to start with. You are making too many assumptions. Maintaining rental property is alot of work and its expensive. Tenants will trash a property in no time. Some tenants will flat out refuse to pay their rent and it takes months to get them out and they trash the place.
I bought a 4 unit 2 bedroom 1 bath units in 1989 and sold them in 2002 (13.5 years later) at a loss. I also found out that single and bachelor units have high vacancies and I got rid of them as well. But one bedroom one bath units are low mainteance and low vacancies so I prefer these type of units.
LOL, if Hyperinflation happens in America, you are not selling shit, your houses will ether be squatted in or burnt to the ground along with your insurance companies building and the rest of America. There will be no more police after about two weeks of "Hyperinflation" so your houses will be gone. America will be like Mad Max gas,water.ammo will be valuable not or houses that now look like Detroit crack houses.
I studied the inflation numbers for Zimbabwe and the inflation did not go from zero to 1300% overnight. Let us look at Real Estate prices prior to the collapse: 1998-99 RE doubles, 2000-01 RE triples, 2002 RE triples, 2003 RE goes up six times, 2004 RE doubles, 2005 RE goes up six times, 2006 RE goes up 13 times and 2007 RE collapses. There is plenty of time to cash out the profits in Real Estate and diversify in safer investments like gold, silver and coins. I like gold.
@MrAlanKendall If you try to use banker math to profit from a breakdown of society, you are distin to be killed and eatin. You can't use Zimbabwe as a example they are not armed, Americans are. And Americans are violent Gold is good but only well after order is reestablished.So invest in lead, I see a 10,000% increase in canned food,fresh water, guns and Ammo.
I dont deny hyperinflation like you are saying. I just say that we will not go from Zero inflation to 1000% inflation in one year. Milk will not go from $4.00 to $40.00 overnight. It will happen over a few years. I will then sell Real Estate and buy a lot more gold. Even Peter Schiff says that home prices will probably rise, but not as fast as Gold. The high inflation of 1979-1980 did not occur over one year, it took 4 years for the inflation to build.
@MrAlanKendall Your right it took the Carter years for the 1979-1980 inflation to happen, and you just might sell your house's because Americans just like in 1980 dont learn from there past. I just hope you dont rely on future profits or investments after Hyperinflation and use your profits to procure guns and ammo and food. We will need a "numbers guy" after the fall. Best of luck.
@MrAlanKendall I urge you to take an economics class before doing something like this... If you read your last response one more time it should be lightning clear where you should put your money before you put them into real estate....
I sold my home at both peaks in 1989 and 2007 in California and in the next year I will buy back at half the price.The law of supply and demand drives price fluctuations. When Foreclosures rise (rising in 2010 and 2011) prices must fall. When Foreclosures quit rising and are being sold off (like 2012-2016) prices will remain stable. When Foreclosures are sold off like in 2006-2027 prices must rise because demand is greater than supply.
@ivegotamagicstix in times of extreme hyperinflation food becomes lots more valuable than gold. I seen movies about the great depression people were selling their gold jewelry in exchange for a few cans of food. People were that desperate because many were starving.
It depends where you look. If you look at beach front properties in California, price have only fallen 20%. If you look at Nevada, Florida and Arizona Properties, prices have fallen 60 to 80%. There are also other reasons to buy like seventy year lows in interest rates and tax write offs. I am looking to buy a duplex and live in one and rent the other. My mortgage will be $500 less per month (than my current rent) and I will pay $500 less in taxes.
Refinances are harder than purchases. The prime rate is 4.36 and I know a person that is doing a purchase of a home at $950,000 and got 3.8% fixed. I did a refinance a year ago and I felt like a sucker afterwards for getting the high rate that I am paying. It is all relative because we have 70 year low rates and ten years from now 5% will be a dream.
Hyperinflation started in Zimbabwe and gradually got worse. Prior to 2007 there were three decades of massive inflation. To say that Hype-inflation will start in the US without years of increased inflation is not correct.
@MrAlanKendall i don't know man, that is a risky game to play right now. if you watch what a lot of economist guy like faber, schiff, sprott, that dude with the bow tie are doing is investing overseas. you might be better off holding onto your gold and renting till after all the resets clear. right now im living like a bum to save in PMs with the hope that soon my relentless savings will buy me something decent in full or close to full during hyperinflation scenario..good luck
I expect January 2012 to be the price low, just after the big wave of resets the second half of 2011. Waiting till January 2012 prevents over-paying for a property.
I agree and I am holding on to gold and silver. I heard Peter Schiff say that Real Estate will probably go up with more inflation. Currently in 2010 we are only experiencing single digit inflation. Zimbabwe had double digit inflation for 4 years, then tripple digit inflation for 4 years, then cuadruple digit inflation for 1 year and then the collapse in the tenth year in 2007. We are a very long way from any risk of hyperinflation.
Dude you are a joke and I'll bet live in a trailer..Do you even know what mortgage insurance is? 3% down? ..Buy now? You have got to be kidding!!!!! idiot....If you own property just try to refinace it......This should be enitled how to turn 20 grand into ZERO
I am buying two homes for $515,000 in a nice area 2 miles from the beach with under $20,000 so I know it can be done. The FHA loan requires 3.5% down and I asked the seller to give me (not loan me) $15,000 for closing costs and he accepted. The fannie mae and freddie mac have properties for $100 dollars down but they are beat up and in bad areas (but not always bad areas).
The Real Estate collapsed in 2007 in Zimbabwe with hyperinflation. Let us look at Real Estate prices prior to the collapse: 1998-99 RE doubles, 2000-01 RE triples, 2002 RE triples, 2003 RE goes up six times, 2004 RE doubles, 2005 RE goes up six times, 2006 RE goes up 13 times and 2007 RE collapses. There is plenty of time to cash out the profits in Real Estate and diversify in safer investments like gold, silver and coins.
Financing is a real issue. I suggest buying a property with an FHA loan with only 3.5% down. Since FHA loans are insured by the governement, the bank does not have any risk in giving these loans. The bank collects fees for the loan. The FED is giving away properties for 1 dollar down but they are usually in rough areas (but not always in a rough area). There are also 5% down insured programs and some banks are giving away properties with 1% down just to get rid of the homes.
I agree with you that conditions seem the best possible conditions for buyers. If I were stateside right now, I would buy a house, and then pay off the mortgage as soon as possible.
The next up leg from 2015 to 2022 will be much better for home owners because the Government is trying to offset the deflation in jobs and Real Estate by printing money (inflation). The US Governement is printing 4.1 billion dollars of cash per day. In the 1970's the US Government printed only 20 million of cash per day and when the foreclosures dried up in 1976, properties nationwide jumped six times in price by 1983. Also In the 1970's we had layoffs caused by a housing bubble.
When Warren Buffet was asked about the 13 trillion dollar deficit, he said that it was not a problem because Nations historically devaluate deficits by printing of money. This is the plan of the US Governemnt exactly, in the last half of this decade, inflation will hit and Home prices will jump 4 to 6 times this decade alone. Seems hard to believe but the minimum wage will jump to $20 to $30 per hour as well as foods, gold and oil.
In 2010, 2011 foreclosures are rising. FHA loans are insured and the Banks will make these loans with 3 1/2% down. Fannie Mae and Freddy Mac have properties that are one dollar down (usually in rough areas but not always). Many cities will loan money for owner-occupied purchases at zero percent. I see that there are programs in Arizona were banks are trying to get rid of properties with 1% down. 5% down programs are typical for owner occupied single family homes in most states.
I expect California RE to jump four to six times in price by 2022 and Arizona RE to jump six to Eight times by 2022. Then I expect Real Estate to peak around 2027 when it has jumped six to eight times by 2027 and Eight to ten time in price in Arizona. With so much printing of money, we should experience a massive jump in RE prices once RE foreclosures are all sold off. I expect all US RE to jump 4 times in price the second half of this decade, then double again next decade.
2010 through 2012 you might have to lower your rents to keep your units rented. Lowering rents 25% is very normal in major corrections. Look on craigslist and call rental agencies to keep aware of what market rents are. I had to lower rents by 10% last year and 20% this year for vacancies to keep them rented.
@MrAlanKendall isn't it better to just hold on to your gold/silver and buy homes in full with it when hyperinflation hits? why buy now if you know the option arm tidal wave is coming? if you think there are a lot of foreclosures now, wait a few more years and it will double or triple, including commercial properties. i think there is a reason the government wants people to buy now, they want to milk every last drop of wealth before SHTF. i rather buy 20k of gold than homes right now
• Interest rates are the lowest in seven decades and this lowers your payment over time if you get a fixed loan. Rates are likely to go up 10% in the next few years and this offsets a possible 10% drop in price.
I am a real estate investor in my 20's. I bought a foreclosed home a few years ago and completely renovated it. I now have an mls listing. I am walking away with 60k and I have two questions for you. I would really like to ask you. I am in the Midwest and 60k is a nice start in my area. I could buy 3 nice houses.each rented for 500 a month. If you could email me at dustinkdl@yahoo.com I would really appreciate 5mins of your time. I can prove my home ownership in 1 minute through auditors websi
dustinkdl 3 weeks ago
@dustinkdl
The Loan Resets got pushed out till October 2012 so in 2012 it interest rates and prices will be the lowest going forward. You want to lock in a fixed loan and hold on. If you can buy the 3 homes in 2012, you will get a better rate and price than in 2013.
MrAlanKendall 3 weeks ago
THATS WHAT CAUSED THE PROBLEM IN THE FIRST PLACE!!!!!!!EVERYONE THOUGHT THEY COULD BE A LANDLORD!!!!!!!!!!!!!!!!!
chrysler3c 3 weeks ago
@chrysler3c
Leverage works against the owner when prices are falling but for the owner when prices are rising. See my video on "Should I buy Real Estate in January 2012?"
MrAlanKendall 3 weeks ago
i'm not good at this...but first you have to be fortunate enough to have 20,000 and the banks are not lending anyway
salsaby1103 3 weeks ago
Money really isn't that important.
altgeldrarities 2 months ago
Just because the price goes up doesn't mean the value does too.
myassin2009 2 months ago
Why would the United States go into Hyperinflation when it can produce all it's own goods right here on it's own soil?
flanksteak2 2 months ago
@flanksteak2
I have my doubts about hyperinflation myself. But if people really believe in inflation they will buy Real Estate and use leverage. If Hyperinflation, then the Real Estate will do even better prior to the Hyperinflation when the economy has double digit inflation. Zimbabwe went through stages. 1) High Single digit inflation for 20 years. 2) Double digit inflation for 4 years. 3) Tripple digit for 4 years 4) Quadruple digit inflation for 2 years and 5) the collapse.
MrAlanKendall 2 months ago
@MrAlanKendall unless the Fed starts upping interest rates to curb the inflation. Of course, if you do what this guy suggests and we go into a deflation, you're completely screwed. However, with Ben Bernanke at the helm, we can hope he'll print enough cash to stave this. Right now, its deflation vs inflation in an epic worldwide battle. Interesting times.
GregJoshuaW 3 weeks ago
@flanksteak2 We can produce all of our own goods, but we don't. Unions destroy profit, and Corporations respond to this by outsourcing jobs. Unions were good when they were saving lives, now they're destroying them by giving you 30 dollars an hour for screwing in a couple bolts. I'd do it for half that, and Indians/Chinese would do it for a bowl of rice.
TumisHumis 2 months ago
If what you say will happen then the market will crash and houses will sell for $20k- $60k because no one can afford them.
=)
Nice try though.
ZacharySchroeder 3 months ago
@SavageSanDiego
US Census 1980 had the US population at 222 million. US Census 2010 had the US population at 310 million. The US population increase of 2.75 million per year soaks up the foreclosures at a rate of about 1.2 million new residences per year. In 2011 only 295,000 new homes are being sold.
MrAlanKendall 3 months ago
terrible idea lol you have debt! With hyper inflation how the hell can you get someone to pay rent.
superhawkn 3 months ago
@superhawkn
Zimbabwe went through stages. 1) High Single digit inflation for 20 years. 2) Double digit inflation for 4 years. 3) Tripple digit inflation for 4 years 4) Quadruple digit inflation for 2 years and finally 5) the Real Estate collapse. The trick is to get into Real Estate 1-4 units with fixed loans under 10% in the first and early second stages. Sell late stage 2 and stage 3 and buy gold long before the collapse. The US is about to go into stage one.
MrAlanKendall 3 months ago
but if we have hyperinflation.....who will be able to buy at that price and wont the hyperinflation soon end in the value of money being worthless? You might have made millions, but they will just be sacks full of worthless paper.
1IIIIIIIIII1 3 months ago
@1IIIIIIIIII1
Zimbabwe went through stages. 1) High Single digit inflation for 20 years. 2) Double digit inflation for 4 years. 3) Tripple digit inflation for 4 years 4) Quadruple digit inflation for 2 years and finally 5) the Real Estate collapse. The trick is to get into Real Estate 1-4 units with fixed loans under 10% in the first and early second stages. Sell late stage 2 and stage 3 and buy gold long before the collapse. The US is about to go into stage one.
MrAlanKendall 3 months ago
@SavageSanDiego
I sold my home at the peak and I bought back September 2011 at the low becaues I follow foreclosues that drive the law of supply and demand in housing. I am paying less than 1/4 the interest for a larger home. Watch and see if my futher predictions hold true. After April 2012 home prices rise 15%. 2013 5% rise, 2014 5% rise, 2015 5% rise, 2016 30% rise, 2017 30% rise, 2018 30% rise, 2019 30% rise, 2020 30% rise.
MrAlanKendall 3 months ago
@SavageSanDiego
Real Estate follows the law of supply and demand and the US population is growing 2.75 million per year. Supply gets a little tighter after April 2012 when Alt-A and Option Adjutable rate loans (1.6 trillion) stop adjusting higher. At the current rate of 400,000 foreclosures being sold per year, the 1.7 million Bank foreclosures will be sold off in 2015. in 2011 295,000 new homes sold but 2.2 million in 2006. Suppy tightens and demand increases.
MrAlanKendall 3 months ago
@SavageSanDiego
Zimbabwe went through stages. 1) High Single digit inflation for 20 years. 2) Double digit inflation for 4 years. 3) Tripple digit inflation for 4 years 4) Quadruple digit inflation for 2 years and finally 5) the Real Estate collapse. The trick is to get into Real Estate 1-4 units with fixed loans under 10% in the first and early second stages. Sell late stage 2 and stage 3 and buy gold long before the collapse. The US is about to go into stage one.
MrAlanKendall 4 months ago
homes are very low/undervalued right now, but that doesnt mean you should go buy real estate...
its a realllllly long term investment.
MrBigEnchilada 4 months ago
This all sounds fascinating to me...but I must of missed something and was hoping you'd explain.
If we start off with $20K and use your example of a $300K property...using FHA loan @ 3% = $9K down plus some closing costs etc...it wouldn't equal $20K would it??? If not, what would you do with the difference?
Thanks!
rwsmith 4 months ago in playlist REALESTATE
@rwsmith
The Bank doing the FHA loan requires you to have a few months of cash reserves.
MrAlanKendall 4 months ago
Great video.
EconCat88 4 months ago
Refinance for your down payment on the next house? Don't think that's kosher.
GunnyBear95 4 months ago
@GunnyBear95
When Banks do not own foreclosures, demand is greater than supply and prices rise so leverage is working in favors the person taking out the loan as the propertry rises in value. When Bank owned foreclosures are rising (supply greater than demand) prices are falling and leverage is working against the person who took out the loan. I learned from the dot com bubble that increased unemployment did not affect home prices but in the sub-prime meltdown iincreased foreclosures did.
MrAlanKendall 4 months ago
Ever hear of the 2009 real estate crash???
wilsmanpeterexcess 5 months ago
imo, inflation will go to about 10% as stated by the government (not using food or energy prices) and housing prices will drop another 33% from 2011 levels.
If you try to leverage during the rise, even if you made $7 million, that amount is dependent on people who can afford your 4 homes worth 12 million. $3 million for a home when hardly anyone can afford a $500,000 mortgage now. Wages won't be going up 6x so you'll have 1% of Americans being able to buy a $3M property. U won't find renters!
renzaura 5 months ago
I can make 2K worth a million. Just buy an ounce of gold and travel 100 years into the future!
elektrikcity 5 months ago 2
@elektrikcity
So you believe in inflation. Then why not use Real Estate becaues Real Estate has the added benefit of leverage.
MrAlanKendall 5 months ago
@seanncali
Zimbabwe went through stages. 1) High Single digit inflation for 20 years. 2) Double digit inflation for 4 years. 3) Tripple digit inflation for 4 years 4) Quadruple digit inflation for 2 years and finally 5) the Real Estate collapse. The trick is to get into Real Estate 1-4 units with fixed loans under 10% in the first and early second stages. Sell late stage 2 and stage 3 and buy gold long before the collapse. The US is about to go into stage one.
MrAlanKendall 8 months ago
your leaving out the obvious which is the dollars will be worthless so you will have 7 million dollars that might buy you a loaf of bread. lol The bread will be worth more than any paper.
TheeLynnChase 8 months ago 10
@TheeLynnChase
Zimbabwe went through stages. 1) High Single digit inflation for 20 years. 2) Double digit inflation for 4 years. 3) Tripple digit inflation for 4 years 4) Quadruple digit inflation for 2 years and finally 5) the Real Estate collapse. The trick is to get into Real Estate 1-4 units with fixed loans under 10% in the first and early second stages. Sell late stage 2 and stage 3 and buy gold long before the collapse. The US is about to go into stage one.
MrAlanKendall 8 months ago
@TheeLynnChase You'd rather be in that position sitting on the paper than without it.
mrwhispers 3 months ago
@TheeLynnChase good call MR. CHASE Ron Paul 2012
johnbarkand 1 week ago
Your safer just taking the $20,000 and buying gold, silver, and seeds. leading up to and during hyper inflation no one is going to be buying any houses when they are struggling to feed themselves.
deadcell1 8 months ago 13
@deadcell1 - Well said.
btrimarchi 6 months ago
@deadcell1 Who is going to be buying gold when they are struggling to feed themselves?? Don't know how 10 people just blindly agreed with you but if you are talking economic collapse I would much rather have land
davewinger 4 months ago
@deadcell1 If there is a point where people are struggling to feed themselves, I doubt gold and silver will be a priority.
myassin2009 2 months ago
1. Property prices don't do very well in hyper-inflation. See Germany in the 20s. Lots of places in the US already restrict the amount rents can be increased and the US government has shown they'll resort to price controls
2. As inflation goes up so do interest rates. So you won't be able to refinance and buy additional houses as interest rates will be as high as inflation is.
3. Property taxes will kill all your profits if government price controls don't stop property prices shooting up.
jedfa987 8 months ago
@jedfa987
Great comments. I agree with you 100%. My plan is to buy before 2016 with fixed loans on 1 to 4 unit residential properties.
MrAlanKendall 8 months ago
@MrAlanKendall Who is going to give you a loan to purchase anything in a hyperinflationary environment, at a fixed rate of below around 10%?
Nobody. Creditors aren't stupid, that's why they have money.
fuzzywzhe 7 months ago
@fuzzywzhe
I dont expect rates to go to 10% until 2018. Before 2016 I expect rates to stay under 7%.
MrAlanKendall 7 months ago
@MrAlanKendall Interest rates will never got to 10%, at least for the federal debt.
I'm saying nobody is going to loan money in dollars when there is a hyperinflation.
fuzzywzhe 7 months ago
@fuzzywzhe
My idea is to buy 1 to 4 units prior to 2016 before the increased inflation sets in.
MrAlanKendall 7 months ago
@MrAlanKendall "My idea is to buy 1 to 4 units prior to 2016 before the increased inflation sets in."
Well, good luck or whatever. You really ought to research what happens during a hyperinflation, it's happened plenty of times. In France, they reissued the money, and then made you pay back the debt into the new cash, not the old money of Jon Law.
fuzzywzhe 7 months ago
great idea but just another example of how the rich get richer... how many people make enough $ to make banks want to loan you that much?
guywhosfly 8 months ago
@guywhosfly
Four Bedroom Two Bath homes with a pool in good condition is $42,000 in Phoenix Az. There properties were around $250,000 in 2006 (Beat up 4 bedroom homes are $32,000 in Phoenix Az). For that you would only need about $15 per hour to qualify. For the properties that I am trying to buy in California, 3/4 of the rents are added to your salary (because rents are used to pay the mortgage) so the rents help you to qualify.
MrAlanKendall 8 months ago
@MrAlanKendall I'd be kinda stuck between a rock and a hard place... the investor side of me says "GO FOR IT! YOU'LL MAKE A KILLING!", but the humanitarian in me says, "how could you profit off some poor schmuck's misfortune and sleep well at night".
mgxmagic 8 months ago
@mgxmagic
Over the Years I did over 30 evictions. After I got a judgement I told the lawyer not to file anything against the tenants credit because I did not want to be mean. On several ocasions I gave tenants part of the down payment on a home to help them get it. I have no problem sleeping at night. I know that If I get possession of units that I am going to charge low rents, do repairs, not harasses tenants and help as many people as I can get homes.
MrAlanKendall 8 months ago
@mgxmagic I dont understand why that is bad because he saves his money and invests wisely he's an asshole. be jealous that this guy is smarter then you.
wiseGUY1288 8 months ago
im a hip hop artist, i produced a song called "Audit the FED". just type that in with J.Skillz. i'm taking the truth and politics to my music. It needs to be spread. I'm very informative and I'm also very passionate about my art and I want to share knowledge. POWER IS IN THE PEOPLE! Go check out my video, promise you, you won't be disappointed.
jskillzis4hh4 8 months ago
whos going to buy anying in hyperinflation...
beerun1 9 months ago
@beerun1
Zimbabwe went through stages. 1) High Single digit inflation for 20 years. 2) Double digit inflation for 4 years. 3) Tripple digit inflation for 4 years 4) Quadruple digit inflation for 2 years and finally 5) the Real Estate collapse. The trick is to get into Real Estate 1-4 units with fixed loans under 10% in the first and early second stages. Sell late stage 2 and stage 3 and buy gold long before the collapse. The US is about to go into stage one.
MrAlanKendall 9 months ago
I'd be interested to know your thoughts on silver and gold alan
wesleytarbuck 9 months ago
@wesleytarbuck
I believe that Gold will go to between $8,000 and $10,000 per ounce and gasoline will go to between $30 and $40 per gallon. The govt is printing massive amounts of dollars so inflation should continue.
MrAlanKendall 9 months ago
Real estate will be safe to buy in 2012??? Are you kidding?? With FHA loan???
Even if you have 900+ (if there is such credit score) credit score, you won't get the loan unless you have more than 50% down and that's even if you are lucky with maybe with 70k or higher income per year. You wanna know how to make $1 to million? Buy a lottery. That should be a lot more effective and reliable than relying on government loans to purchase a house.
Wake up. You can no longer rely on government anymore.
delsol7878 9 months ago
Just go buy property in China and save yourself the pain
wesleyking86 9 months ago
The website akp.myindx.com doesn't seem like your website.. just a generic index website. Did I get it wrong.
rpothuraju 9 months ago
@rpothuraju
Yes, that url is no longer valid. I have to re-do some of the clips to remove the site.
MrAlanKendall 9 months ago
Mr. Alan I couldn't find your website: akp.mind.com
Am I missing something?
rpothuraju 9 months ago
in what world will there be a 3% interest rate and hyperinflation ?? try interest rates of 25-30%
shanemacc 9 months ago
@shanemacc
I will buy properties with fixed loans under 10% and when prices jump, my properties will jump in value as well. I remember 1976-1983 when properties nationwide went up six times in price in only 7 years. Neighbors of mine bought with a variable loan and they lost their home. I remember them telling me that their mortgage went up 5 years in a row but their salary remained fixed so they were unable to pay the mortgage. Another friend paid $60,000 and sold it for $450,000 in 1983.
MrAlanKendall 9 months ago
@shanemacc
Zimbabwe went through stages that led to the Collapse. 1) High Single digit inflation for 20 years. 2) Double digit inflation for 4 years. 3) Tripple digit inflation for 4 years 4) Quadruple digit inflation for 2 years and finally 5) the Real Estate collapse. The trick is to get into Real Estate 1-4 units with fixed loans under 10% in the first and early second stages. Sell late stage 2 and stage 3 and buy gold long before the collapse. The US is about to go into stage 1.
MrAlanKendall 9 months ago
FHA will be a distant memory.
MethaneMcGuiness 10 months ago
@MethaneMcGuiness
FHA has been around since 1933 so it is likely to get bailed out by the Government.
MrAlanKendall 10 months ago
Does noboy remember the 1980s? Wikipedia "Fed Funds Rate" and check out the chart half way down. Loads of buys failed when rates skyrocket to 10-19% interest!
sang3Eta 10 months ago
@sang3Eta
I will buy properties with fixed loans under 10% and when prices jump, my properties will jump in value as well. I remember 1976-1983 when properties nationwide went up six times in price in only 7 years. Neighbors of mine bought with a variable loan and they lost their home. I remember them telling me that their mortgage went up 5 years in a row but their salary remained fixed so they were unable to pay the mortgage. Another friend paid $60,000 and sold it for $450,000 in 1983.
MrAlanKendall 10 months ago
@sang3Eta
My cousin bought a home with a 21% variable loan in 1981.
MrAlanKendall 10 months ago
You talk of renting out these $300k, $400k, and even $500k homes. How much rent are you expecting people to pay? Who's going to pay $2,500 - $3,000 mo in rent for these homes so that your mortgage pymnts are covered?
LodiRandy 11 months ago
@LodiRandy
I sold my home at the peak (see my other videos on Real Estate Timing) so I am renting. I pay $2,250 per month. When inflation hits, the rents in my area will go over $10,000 per month. When the billions of dollars that Chase, Bank of America and Citygroup have amassed start to lend, the cheap money that floods the economy will cause a stronger inflationary up-leg. Everything will easily quadruple just like inflation works in other nations.
MrAlanKendall 11 months ago
@MrAlanKendall
No offense, but that's crazy! Rents will not go up to $10k per month for middle American homes. I wasn't talking about Bel Air or Manhattan, just your avg 3/2 home in your avg city. The avg income for middle America would have to increase to 1/4 million dollars a year to afford $10k monthly rents. There's NO way that will ever happen. At its peak there have been some homes in my area of central Calif that their rents increased to around $2k mo as well but to go to $10k..NO.
LodiRandy 11 months ago
@LodiRandy
In 1978 Reagan complained that the Government was printing 20 million of cash per day. When foreclosures dried up in 1976, by 1987 Property nationwide had gone up 8 times. Today the Government is printing 205 times more money per day (4.1 billion) so my expectaction that prices will go up eight times between 2016 and 2027 is actually my conservative approach. Inflation works the same in every nation and when banks start to loan the money, massive inflation will occur.
MrAlanKendall 11 months ago
@MrAlanKendall
That may be true, but again, there is NO way that property values and especially rent amounts can increase 8-10 times their current prices. A $200,000 home today will not be worth $2,000,000 by 2027 & definitely not by 2016. The same goes for rents. There's no way for rents to increase 8-10 times their current amounts. It's not so much that it's not possible...it's just not going to happen. Incomes for the avg American will in no way increase by the amount needed to purchase.
LodiRandy 11 months ago
@LodiRandy
It took me years of looking at the numbers before I changed my mind and accepted that we are going to go into an accelerated up-leg in inflation after the foreclosures run dry. When Houses start to rise (after 2015), and the Govt raises rates to slow the inflation, they will not be able to pay the interest on the deficit and that will cause more printing of money to make payments. It is not really all that important how much it goes up, just that you take advantage of leverage.
MrAlanKendall 11 months ago
This info is Bull Sh-t simple
Nobody will buy a house from you.
JimboJammer1 11 months ago
@JimboJammer1
Zimbabwe went through stages that led to the Collapse. 1) High Single digit inflation for 20 years. 2) Double digit inflation for 4 years. 3) Tripple digit inflation for 4 years 4) Quadruple digit inflation for 2 years and finally 5) the Real Estate collapse. The trick is to get into Real Estate 1-4 units with fixed loans under 10% in the first and early second stages. Sell late stage 2 and stage 3 and buy gold long before the collapse. The US isnt even in stage 1.
MrAlanKendall 11 months ago
Question, based on your scenario, who will actually purshase these properties from you in order to make $7 million dollars? If the dollar is worthless, then it will take far more dollars to buy those properties from you, if my dollar is worthless, then I won't be able to buy much and real estate will be the last thing I will want to spend what little money I have left on. It makes more sense to buy gold/silver/ other commodities or commodity stocks.
jmcclellan54321 11 months ago
@jmcclellan54321
Zimbabwe went through stages that led to the Collapse. 1) High Single digit inflation for 20 years. 2) Double digit inflation for 4 years. 3) Tripple digit inflation for 4 years 4) Quadruple digit inflation for 2 years and finally 5) the Real Estate collapse. The trick is to get into Real Estate 1-4 units with fixed loans under 10% in the first and early second stages. Sell late stage 2 and stage 3 and buy gold long before the collapse. The US isnt even in stage 1.
MrAlanKendall 11 months ago
@MrAlanKendall So do you believe the U.S. will go through the exact same stages in the same way as Zimbabwe? Or do you think it could be more rapid?
jmcclellan54321 11 months ago
@jmcclellan54321
We are in low single digit inflation. I have heard youtube videos say we were going to go into hyperinflation in the year 2007 because of the massive amounts of money printed daily (4.1 billion) but the contraction in jobs and Real Estate is holding inflation under control. I do not know how many years it will be till stage 4, but I do know that we are no where near stage 2 and it will take years to sell off 4 million foreclosures (deflationary on Real Estate prices).
MrAlanKendall 11 months ago
@MrAlanKendall What if the government bought that 4 million in foreclosures, or at least a good majority of it?
jmcclellan54321 11 months ago
@jmcclellan54321
Census numbers show:
• More than 14 million housing units are vacant. That number does not include an estimated 4.8 million seasonal or vacation homes, most of which are occupied part of the year. The combined vacancy rate of almost 15% is higher than during previous recessions: 11% in 1991 and 9.4% in 1984.
• I just don't see the Government helping out the Banks again. Maybe the Banks want to sell off the remaining 4 million foreclosures?
MrAlanKendall 11 months ago
4 years from now during hyperinflation when your bringing a duffel bag full of cash to the supermarket for a days worth of food, 7 million$ will only be worth about 20k in today's money. I suggest investing in commodities and dumping money into gold and silver mines. Buying the actual metals won't hurt either. During the peak of hyper inflation the dollar will be worth less than the paper it is printed on. Until a new currency comes out gold and silver will be the better investment.
reefnyc 11 months ago
@reefnyc
Zimbabwe went through stages that led to the Real Estate Collapse. 1) High Single digit inflation for 20 years. 2) Double digit inflation for 4 years. 3) Tripple digit inflation for 4 years 4) Quadruple digit inflation for 2 years and finally 5) the Real Estate collapse. The trick is to get into Real Estate 1-4 units with fixed loans under 10% in the first and second stages. Sell in stage 3 and buy gold long before any collapse. The US is in stage one with plenty of time to plan.
MrAlanKendall 11 months ago
Very nice peace of wisdon....thank you for posting....Mr. Alan Kendall.!
Willing to hear from you again....
112ayla 11 months ago
But the jobs aren't being created. Every $1 an American spends at Wal-mart $0.90 goes to China to create jobs there. That is debt being taken on that American's can't repay because they don't have enough jobs. You're thinking of the U.S. of the past, think of the U.S. of the future more like what it is like in Africa. That is your future unless you get a politician who knows how to re-invest in the nation and create manufacturing jobs.
Bobzeedo 1 year ago
FHA still offers apartment loans with 30-year low fixed rate, no balloon, no prepay penalty. Up to 80% Loan To Value (LTV) for 1st position loan, plus combined LTV up to almost 95% CLTV. For small residential, you can buy with seller financing (wrap existing loan), season the title for 6 months, then get FHA refinance for more than 100% LTV. Banks love FHA loans, because it's not their money. The banks get a servicing fee, but the loan funds come from Ginnie Mae (tax payer backed).
UltimateBargains 1 year ago
How does that solve the problem I describe? Your plan requires housing prices to rise after 2012 due to inflation. For the reasons I described, housing will stay flat even with commodity inflation. We can't compete on the world market so there will be no increase in wages or jobs, there is WAY too much housing on the market from the 30 yr boom, and commodity prices will rise from Asia growth and speculators getting out of the U.S. (banks are using QE to buy commodities and other foreign assets).
HudsonKnowsEconomics 1 year ago
@HudsonKnowsEconomics
In 1980 the US population was 227 million. In 2011 the US population is 310 million and growing. The US population is increasing at an amazing rate of 2.75 million per year. The population increase is enough to absorb the 3 million recent bank foreclosures and create demand. Not being able to compete with China is even more proof that the US Goverment will spend money on stimulus and create more inflation.
MrAlanKendall 1 year ago
This will not work because:
1) We have 3x more sq ft per person as we did in 1970.
2) We can't compete with Asia even with dollar 1/3 current value
3) 1)+2) = Hyperinflation will occur only in commodities
3) is true because 1) will keep housing flat & 2) will keep wages flat. Flat wages reinforce flat housing, especially since more wages will be diverted to commodities, away from housing. Besides, interest rates will rise, also killing housing. Free real estate rides are a thing of the past.
HudsonKnowsEconomics 1 year ago
@HudsonKnowsEconomics
Just buy 1 to 4 Residential units with fixed loans. 5 or more units requre variable rates by the banks.
MrAlanKendall 1 year ago
@MrAlanKendall An increase in interest rates means your house values will go down. You're describing a one-way path to bankruptcy.
HudsonKnowsEconomics 1 year ago
@HudsonKnowsEconomics
The Government raises the rates when prices are jumping, not falling. In 2005 and 2006 the fed raised rates 17 times because the housing was going up too fast. I expect rates to really jump 2016 through 2020.
MrAlanKendall 1 year ago
How to turn $10,000 you saved into $1,000,000? Leave your office, walk to Wall Street from the White House which will take 15 minutes. Dump your $10,000 into the steel industry and walk out with $1,000,000 by afternoon crashing the entire economy.
heartlessvietboy 11 months ago
@MrAlanKendall I am a canadian looking to buy many properties in USA. Any markets you suggest?
bicepsca 1 year ago
@bicepsca
Nevada, Arizona and Florida are the most depressed in price and the most likely to make the biggest jumps in price.
MrAlanKendall 1 year ago
what his "nerdness" has forgot is that $7 M u gonna walk away with,in time of hyper inflation,wont be worth anything cuz u'd probably need a couple of thousands of dollars to buy a pack of smoke.
theWACKIIRAQI 1 year ago
@theWACKIIRAQI Zimbabwe went through stages that led to the Real Estate Collapse. 1) Single digit inflation for 20 years. 2) Double digit inflation for 4 years. 3) Tripple digit inflation for 4 years 4) Quadruple digit inflation for 2 years and finally 5) the Real Estate collapse. The trick is to get into Real Estate 1-4 units with fixed loans under 10% in the first and second stages. Sell in stage 3 and buy gold long before any collapse. The US is in stage one with plenty of time to plan.
MrAlanKendall 1 year ago
With hyper inflation the fed also increases the interest rate by a lot. How does this effect the pyramiding method you are suggesting?
Francesca5000 1 year ago
@Francesca5000
Banks make fixed loans on 1-4 residential units. Buy BEFORE 2016. In 1970's Collapse, the contraction in jobs and Real Estate held inflation under control but when Foreclosures ran dry in 1976 then 5 years of Double Digit inflation hit America. Conservatively 2016 through 2020 Real Estate will quadruple in price in America and go up 8 times in Arizona, Nevada and Florida. 2016-2018 Real Estate doubles, Quadruples by 2020, six times more by 2023 and Eight times more by 2027.
MrAlanKendall 1 year ago
I don't know if I concur with the statement that "banks make fixed loans on 1-4% for residential homes" Currently they are at 5%, and in the 70's they got up to 21% interest to buy a home.
@MrAlanKendall
Francesca5000 1 year ago
@Francesca5000
The Government has been putting 4.1 billion/day into stimulus but Banks have not been loaning. After March 2012 the Alt-A and Option Adjustable rate loans quit adjusting higher so the Banks will ease up a little on the requirements. After the foreclosures dry up in 2016 prices rise more so Banks will ease up a lot but like the 1970's, rates will also soar. I believe that we should buy before the rise of 2016-2027. If inflation approaches tripple digits, convert to gold.
MrAlanKendall 1 year ago
Yeah, too bad by that time 7 million dollars has the purchasing power of 18,000 original dollars.
shone1178 1 year ago
@shone1178
He said to buy gold with the 7mil, and not keep it in dollars. That might work.
Francesca5000 1 year ago
@Francesca5000 right but the purchasing power of the 7 million is not 7 million original dollars, meaning you will only get 18,000-20,000 original dollars worth of gold. Believe me, its too good to be true.
shone1178 1 year ago
@shone1178
Before Zimbabwe had hiperinflation they were kicking out farm owners because of jealousy. Jealousy that the land owners had become so rich. Because the steep jump in their land prices made the farm owners extreamly rich. Before hyperinflation sets in, I can control a half a million dolllar property with a 3 1/2 percent down FHA loan. When it doubles in price I have make ten times my money, something I cannot do with Gold.
MrAlanKendall 1 year ago
@MrAlanKendall yes you will make millions but..............a million dollars then will be worth nothing?
gold actually will not get your rich but it will lock in todays net present value of money irrespective of the inflation rate.
mrwfraser 1 year ago
This guy's nuts! WHAT BANK IS GOING TO LOAN THIS GUY MONEY? Who's going to buy these properies? Good grief!
Wanna make money? Buy silver NOW!
Hold on to it until the gold/silver ratio is 10 to 1.
For info on preparing for the 2011 economic collapse go to spiritwars at dot net.
God, groceries, guns and gold....and silver.
America is in for a world of hurt very soon.
Prepare asap, then, BRACE FOR IMPACT!
mkmason2002 1 year ago
@mkmason2002 I am totally agree with you that this man is crazy. But I personally believe buying silver now is a bad investment. It's too late to buy now. Silver price will drop around $11/12 per oz and stay there for years.
bigbrightsky 1 year ago
What ERA are you living in DUDE? ... We're way pass the Real Estate Bubble. There is a cycle to investments just as there is a cycle to currency. Study up on it before you try offering your dimwit financial advice! Folks, ignore this #ss and buy as much gold & silver as well as other commodities (food, etc) that you can! Once the dollar collapses (which it will), then you can trade with """Certain Parties"""" to receive VALUABLE GOODS! NOT US DOLLARS ... THEY WON'T EVEN EXIST!
MrSizzlingsilver 1 year ago
@MrSizzlingsilver
I sold my house at the peak in 2007. I told hundreds of people that Real Estate was going to collapse and many Real Estate agents scorned me, laughed and yelled at me. One Pastor in a Church put her hands on me and rebuked the devil and told her congregation to not listen to me, that I did not know what I was talking about. Real Estate will make make a big jump 2016 through 2027. Of course it will not make a comeback in 2011 when many loans adjust to higher payments.
MrAlanKendall 1 year ago
@MrAlanKendall You must not be as intelligent as I thought you were.
MrSizzlingsilver 1 year ago
I do not believe this man !!
TheKerryzzz 1 year ago
@TheKerryzzz
The Government cannot print 4.1 billion dollars of cash per day without us having inflation. Inflation works in all other countries but currently the contraction in jobs and real estate is holding inflation in check. After 2016 (when the 4 million foreclosures are sold off) nothing will be able to hold inflation down as the Banks loan money on Real Estate and cheap money flows out into the economy.
MrAlanKendall 1 year ago
Was this recorded in 2004???? We will see hyperinflation only in "real" assets like metals, food, fuel, etc. We will see massive DEFLATION in representative instruments like stocks and leveraged finance like mortgages. Bonds and other loans will default. In additon, you won't be able to get the financing. Real smart professor.
scjtraveler 1 year ago
@scjtraveler
In Zimbabwe, they had double digit inflation for 4 years, then tripple digit inflation for 4 years, then 1 year of quadruple digit inflation and then the collapse of the Zimbabwe currency and housing in the tenth year. Since in America we are still in the single digit inflation, we are not at risk of a collapse in the next few years. Inflation will have to get into the double digits, then the tripple digits. Banks were loaning on housing in Zimbabwe right up to 2007.
MrAlanKendall 1 year ago
@scjtraveler
The idea would be to buy property and leverage it when inflation is in the single and double digits. When inflation goes into the tripple digits, get rid of Real Estate and buy Gold. Even Peter Schiff says that property values will go up but not as fast as gold. Anyone that really believes in hyperinflation must realize that inflation will move from single digit to double digit to tripple digit to quadruple digit for true hyperinflation to cause a collapse.
MrAlanKendall 1 year ago
dude that bullshit is exactly what caused the first housing bubble.
rustyscrapper 1 year ago
@rustyscrapper
Leverage is bad when foreclosures are increasing and home prices fall. When foreclosures run dry (I estimate after 2015), leverage favors the owner when prices rise.
MrAlanKendall 1 year ago
jeahh 7 Million....... while piece of bread will cost like 50.000 USD
your gains are only nominal and the money you take out of the first home will not be enugh to finance the scond mortage.
FoersterX 1 year ago
@FoersterX
The premise is to use the money from the refinance to put a down payment on another mortgage. This can be done with leverage.
MrAlanKendall 1 year ago
@MrAlanKendall: Who is going to give you the money for leverage?? Are you shure in times of Hyperinflation Banks would provide leverage FOR YOU?
FoersterX 1 year ago
@FoersterX
In Zimbabwe, they had double digit inflation for 4 years, then tripple digit inflation for 4 years, then 1 year of quadruple digit inflation and then the collapse of the Zimbabwe currency and housing in the tenth year. Since in America we are still in the single digit inflation, we are not at risk of a collapse in the next few years. Inflation will have to get into the double digits, then the tripple digits. Banks were loaning on housing in zimbabwe right up to 2007.
MrAlanKendall 1 year ago
In your studies, did you not notice the hyperinflation that occurred in Germany 1919-1923 drove spending on housing down and spending on food up? But let's say this wouldn't be the model for us if and when hyperinflation kicks in... Do you really think that wages/salaries would go up enough to support another housing bubble? Your theory is broken.
SDMatt921 1 year ago
Ummm dude, hyperinflation pushes house prices to zero, as people struggle to afford just the very basics like food. So good luck with your plan, lol.
SUKItm 1 year ago
@SUKItm
I studied the inflation numbers for Zimbabwe and the inflation did not go from zero to 1300% overnight. Let us look at Real Estate prices prior to the collapse: 1998-99 RE doubles, 2000-01 RE triples, 2002 RE triples, 2003 RE goes up six times, 2004 RE doubles, 2005 RE goes up six times, 2006 RE goes up 13 times and 2007 RE collapses. There is plenty of time to cash out the profits in Real Estate and diversify in safer investments like gold, silver and coins. I like gold.
MrAlanKendall 1 year ago
@MrAlanKendall your also assuming someone will buy those hyper-inflated properties at their high values. In reality everyone knows those properties aren't worth that much so everyone waits and your stuck with a property that's not worth as much as you paid for it, hence the situation most people that are defaulting on loans are in. If you've got cash to cover all your bets then sure give it a try, if not just buy minerals and be safe.
Intrabeldin 1 year ago
@Intrabeldin
The premise is that Zimbabwe took 4 years for inflation to go from double digits to tripple digits and 4 years more to go from tripple digits to quadruple digits. The ninth year hyperinflation set in with 1300% and Real Estate prices collapsed in the tenth year. We are still at single digits in America so we can take advantage of leverage when double digit inflation sets in and before tripple digit inflation sets in 4 years later.
MrAlanKendall 1 year ago
@SUKItm
I agree, but the news out yesterday is that inflation is tame. Inflation will not go from 1% to 10000% soon. It does it in 3 stages: first inflation is tame as job contraction and foreclousres cause deflationary pressures. Second 4 million foreclosures are sold off (I estimate around 2016) so 2016 through 2023 strong (10%+) inflation sets in. If you sell your real estate holdings betwen 2020 and 2023 you will be very rich in cash and will be able to buy Gold before stage 3.
MrAlanKendall 1 year ago
This guy totally assumes that anyone is going to buy some overpriced house in the future. How is that going to happen when their dollar is worth crap and people simply wont be able to afford it? STFU dude.. this is nonsense.
jesusisnotreal1 1 year ago
@jesusisnotreal1
I studied the inflation numbers for Zimbabwe and the inflation did not go from zero to 1300% overnight. Let us look at Real Estate prices prior to the collapse: 1998-99 RE doubles, 2000-01 RE triples, 2002 RE triples, 2003 RE goes up six times, 2004 RE doubles, 2005 RE goes up six times, 2006 RE goes up 13 times and 2007 RE collapses. There is plenty of time to cash out the profits in Real Estate and diversify in safer investments like gold, silver and coins. I like gold.
MrAlanKendall 1 year ago
The program you describe is what led to the mortgage meltdown to start with. You are making too many assumptions. Maintaining rental property is alot of work and its expensive. Tenants will trash a property in no time. Some tenants will flat out refuse to pay their rent and it takes months to get them out and they trash the place.
clarkewi 1 year ago
@clarkewi
I bought a 4 unit 2 bedroom 1 bath units in 1989 and sold them in 2002 (13.5 years later) at a loss. I also found out that single and bachelor units have high vacancies and I got rid of them as well. But one bedroom one bath units are low mainteance and low vacancies so I prefer these type of units.
MrAlanKendall 1 year ago
LOL, if Hyperinflation happens in America, you are not selling shit, your houses will ether be squatted in or burnt to the ground along with your insurance companies building and the rest of America. There will be no more police after about two weeks of "Hyperinflation" so your houses will be gone. America will be like Mad Max gas,water.ammo will be valuable not or houses that now look like Detroit crack houses.
ivegotamagicstix 1 year ago
@ivegotamagicstix
I studied the inflation numbers for Zimbabwe and the inflation did not go from zero to 1300% overnight. Let us look at Real Estate prices prior to the collapse: 1998-99 RE doubles, 2000-01 RE triples, 2002 RE triples, 2003 RE goes up six times, 2004 RE doubles, 2005 RE goes up six times, 2006 RE goes up 13 times and 2007 RE collapses. There is plenty of time to cash out the profits in Real Estate and diversify in safer investments like gold, silver and coins. I like gold.
MrAlanKendall 1 year ago
@MrAlanKendall If you try to use banker math to profit from a breakdown of society, you are distin to be killed and eatin. You can't use Zimbabwe as a example they are not armed, Americans are. And Americans are violent Gold is good but only well after order is reestablished.So invest in lead, I see a 10,000% increase in canned food,fresh water, guns and Ammo.
ivegotamagicstix 1 year ago
@ivegotamagicstix
I dont deny hyperinflation like you are saying. I just say that we will not go from Zero inflation to 1000% inflation in one year. Milk will not go from $4.00 to $40.00 overnight. It will happen over a few years. I will then sell Real Estate and buy a lot more gold. Even Peter Schiff says that home prices will probably rise, but not as fast as Gold. The high inflation of 1979-1980 did not occur over one year, it took 4 years for the inflation to build.
MrAlanKendall 1 year ago
@MrAlanKendall Your right it took the Carter years for the 1979-1980 inflation to happen, and you just might sell your house's because Americans just like in 1980 dont learn from there past. I just hope you dont rely on future profits or investments after Hyperinflation and use your profits to procure guns and ammo and food. We will need a "numbers guy" after the fall. Best of luck.
ivegotamagicstix 1 year ago
@MrAlanKendall I urge you to take an economics class before doing something like this... If you read your last response one more time it should be lightning clear where you should put your money before you put them into real estate....
omesorg 1 year ago
@omesorg
I sold my home at both peaks in 1989 and 2007 in California and in the next year I will buy back at half the price.The law of supply and demand drives price fluctuations. When Foreclosures rise (rising in 2010 and 2011) prices must fall. When Foreclosures quit rising and are being sold off (like 2012-2016) prices will remain stable. When Foreclosures are sold off like in 2006-2027 prices must rise because demand is greater than supply.
MrAlanKendall 1 year ago
@ivegotamagicstix in times of extreme hyperinflation food becomes lots more valuable than gold. I seen movies about the great depression people were selling their gold jewelry in exchange for a few cans of food. People were that desperate because many were starving.
TheCashistrash 1 year ago
who wants to buy houses that are so inflated?
roger767 1 year ago
@roger767
It depends where you look. If you look at beach front properties in California, price have only fallen 20%. If you look at Nevada, Florida and Arizona Properties, prices have fallen 60 to 80%. There are also other reasons to buy like seventy year lows in interest rates and tax write offs. I am looking to buy a duplex and live in one and rent the other. My mortgage will be $500 less per month (than my current rent) and I will pay $500 less in taxes.
MrAlanKendall 1 year ago
i just refinanced 1,000,000.00 at 5%, could i have done better in these trying times.
humanity6fl9 1 year ago
@humanity6fl9
Refinances are harder than purchases. The prime rate is 4.36 and I know a person that is doing a purchase of a home at $950,000 and got 3.8% fixed. I did a refinance a year ago and I felt like a sucker afterwards for getting the high rate that I am paying. It is all relative because we have 70 year low rates and ten years from now 5% will be a dream.
MrAlanKendall 1 year ago
This guy doesn't understand the difference between Inflation and Hyperinflation!
Blondmoo 1 year ago
@Blondmoo
Hyperinflation started in Zimbabwe and gradually got worse. Prior to 2007 there were three decades of massive inflation. To say that Hype-inflation will start in the US without years of increased inflation is not correct.
MrAlanKendall 1 year ago
@MrAlanKendall i don't know man, that is a risky game to play right now. if you watch what a lot of economist guy like faber, schiff, sprott, that dude with the bow tie are doing is investing overseas. you might be better off holding onto your gold and renting till after all the resets clear. right now im living like a bum to save in PMs with the hope that soon my relentless savings will buy me something decent in full or close to full during hyperinflation scenario..good luck
alphacodexx 1 year ago
@alphacodexx
I expect January 2012 to be the price low, just after the big wave of resets the second half of 2011. Waiting till January 2012 prevents over-paying for a property.
MrAlanKendall 1 year ago
@alphacodexx
I agree and I am holding on to gold and silver. I heard Peter Schiff say that Real Estate will probably go up with more inflation. Currently in 2010 we are only experiencing single digit inflation. Zimbabwe had double digit inflation for 4 years, then tripple digit inflation for 4 years, then cuadruple digit inflation for 1 year and then the collapse in the tenth year in 2007. We are a very long way from any risk of hyperinflation.
MrAlanKendall 1 year ago
Dude you are a joke and I'll bet live in a trailer..Do you even know what mortgage insurance is? 3% down? ..Buy now? You have got to be kidding!!!!! idiot....If you own property just try to refinace it......This should be enitled how to turn 20 grand into ZERO
17seventySIX 1 year ago
@17seventySIX
I am buying two homes for $515,000 in a nice area 2 miles from the beach with under $20,000 so I know it can be done. The FHA loan requires 3.5% down and I asked the seller to give me (not loan me) $15,000 for closing costs and he accepted. The fannie mae and freddie mac have properties for $100 dollars down but they are beat up and in bad areas (but not always bad areas).
MrAlanKendall 1 year ago
in hyper inflation every one is broke you maroned.
no body will buy your stupid house, you will be shot by the bank police officer and they are gonna move in your house
ericlepic 1 year ago
@ericlepic
The Real Estate collapsed in 2007 in Zimbabwe with hyperinflation. Let us look at Real Estate prices prior to the collapse: 1998-99 RE doubles, 2000-01 RE triples, 2002 RE triples, 2003 RE goes up six times, 2004 RE doubles, 2005 RE goes up six times, 2006 RE goes up 13 times and 2007 RE collapses. There is plenty of time to cash out the profits in Real Estate and diversify in safer investments like gold, silver and coins.
MrAlanKendall 1 year ago
This guy is a moron... how do you suspect realestate values to rise when people cannot get financing?
adipierro82 1 year ago
@adipierro82
Financing is a real issue. I suggest buying a property with an FHA loan with only 3.5% down. Since FHA loans are insured by the governement, the bank does not have any risk in giving these loans. The bank collects fees for the loan. The FED is giving away properties for 1 dollar down but they are usually in rough areas (but not always in a rough area). There are also 5% down insured programs and some banks are giving away properties with 1% down just to get rid of the homes.
MrAlanKendall 1 year ago
@adipierro82 HYPERINFLATION
irichard 1 year ago
Alan,
I agree with you that conditions seem the best possible conditions for buyers. If I were stateside right now, I would buy a house, and then pay off the mortgage as soon as possible.
72Yonatan 1 year ago
Thanks, Alan, for explaining how some people did make money on the last real estate cycle due to inflation of property values.
Why should we assume, however, that this exact situation will recur once again?
72Yonatan 1 year ago
@72Yonatan
The next up leg from 2015 to 2022 will be much better for home owners because the Government is trying to offset the deflation in jobs and Real Estate by printing money (inflation). The US Governement is printing 4.1 billion dollars of cash per day. In the 1970's the US Government printed only 20 million of cash per day and when the foreclosures dried up in 1976, properties nationwide jumped six times in price by 1983. Also In the 1970's we had layoffs caused by a housing bubble.
MrAlanKendall 1 year ago
@72Yonatan
When Warren Buffet was asked about the 13 trillion dollar deficit, he said that it was not a problem because Nations historically devaluate deficits by printing of money. This is the plan of the US Governemnt exactly, in the last half of this decade, inflation will hit and Home prices will jump 4 to 6 times this decade alone. Seems hard to believe but the minimum wage will jump to $20 to $30 per hour as well as foods, gold and oil.
MrAlanKendall 1 year ago
that would start the bubble again. Baby boomers do not want that again. Plus banks are not loaning. Do you have another Idea. Could work.
mosinman100 1 year ago
@mosinman100
In 2010, 2011 foreclosures are rising. FHA loans are insured and the Banks will make these loans with 3 1/2% down. Fannie Mae and Freddy Mac have properties that are one dollar down (usually in rough areas but not always). Many cities will loan money for owner-occupied purchases at zero percent. I see that there are programs in Arizona were banks are trying to get rid of properties with 1% down. 5% down programs are typical for owner occupied single family homes in most states.
MrAlanKendall 1 year ago
So, you're expecting ANOTHER real estate bubble within 12 yrs?
karenbcz22 1 year ago
@karenbcz22
I expect California RE to jump four to six times in price by 2022 and Arizona RE to jump six to Eight times by 2022. Then I expect Real Estate to peak around 2027 when it has jumped six to eight times by 2027 and Eight to ten time in price in Arizona. With so much printing of money, we should experience a massive jump in RE prices once RE foreclosures are all sold off. I expect all US RE to jump 4 times in price the second half of this decade, then double again next decade.
MrAlanKendall 1 year ago
@karenbcz22
2010 through 2012 you might have to lower your rents to keep your units rented. Lowering rents 25% is very normal in major corrections. Look on craigslist and call rental agencies to keep aware of what market rents are. I had to lower rents by 10% last year and 20% this year for vacancies to keep them rented.
MrAlanKendall 1 year ago
@MrAlanKendall isn't it better to just hold on to your gold/silver and buy homes in full with it when hyperinflation hits? why buy now if you know the option arm tidal wave is coming? if you think there are a lot of foreclosures now, wait a few more years and it will double or triple, including commercial properties. i think there is a reason the government wants people to buy now, they want to milk every last drop of wealth before SHTF. i rather buy 20k of gold than homes right now
alphacodexx 1 year ago
@alphacodexx
• Interest rates are the lowest in seven decades and this lowers your payment over time if you get a fixed loan. Rates are likely to go up 10% in the next few years and this offsets a possible 10% drop in price.
• Prices are at crashed lows.
• Interest Tax write-off.
• Leverage and future appreciation.
MrAlanKendall 1 year ago