How to Payoff your mortgage in 7 years without using your money.

[sri121212d]

Past data doesn't reflect future performance. People following ONLY the past trends have continuously suffered huge losses in stock markets, real estate and all sorts of markets

[MrAlanKendall]

@sri121212d

I agree with you. 90% of the time I only read the news on Real Estate so I am really in tune with Real Estate cycles. I was paying $4050 per month in interest and sold at the peak. I bought back in 2011 and I am now paying $977 per month for a larger home. This video is on Time cycles. See my video on price movement "Should I buy Real Estate in March 2012?".

[calexander230]

Home price quadrupling? Isn't this exactly why he had a housing bubble and therefore crash in the first place? Why have a job when you can own a home?....???

[MrAlanKendall]

@calexander230 I studied 1969 to 1982 when Unemployment trippled and rates trippled (youtube video soon). The National Board of Realtors recorded that House Prices more than Trippled from 69 to 82. House prices do not follow rates nor employment, they follow the law of supply and demand. During the 1970's (Reagen on Youtube) the Government was printing 20 million of cash daily and now they are printing 3.3 Billion daily so inflation will override unemployment, prices will quadruple by 2020.

[MrAlanKendall]

@calexander230

When Foreclosues dry up, demand is greater than supply and leverage benefits the owner with fixed loans. When Foreclosures are increasing, leverage hurts the owner of Real Estate, expecially the highly leveraged. After Foreclosures quit increasing (which they will in 2012 because loans will quit resetting to higher payments) property prices strengthen 30% and rates 1%. Around 2015 Bank Owned Foreclosures will be sold off and demand will surpass supply and prices will jump.

[bicepsca]

do you think the interest rates will remain low for the next 2 years?

[MrAlanKendall]

@bicepsca

I just read an article Friday in the Investors Business daily about the Government approving another 600 Billion buy back in mortgages through the second quarter of 2011. This keeps rates low. If the Government continues with this policy, rates will stay low. Since 1.6 trillion alt-a and option adjustable rate loans adjust through March 2012, it would be a disaster if the Government does not continue this policy through March 2012.

[Rasenkrieger]

Buying big stuff and relying on state of affairs is not a wise way of doing business these days

[ReyMatthew]

I think your forgetting that America is pretty close to a collapse much like Russia's....

[khh1964]

I know more than a few people that payed off and quit their job in 3 years or less. this guy has the right mindset, although right now investors are doing all of this in a much, much shorter period of time

[cbarcenas1]

Genius. Makes total sense. People overthink things and tend to forget about economic cycles. History does repeat itself.

[sweatykev01]

where is your proof that inflation has ever followed such patterns before your only 20 year example in your diagram. How can you possibly be sure that the time frame will be the same this time? I was sceptical on the other video of yours but now i wonder if i was a bit harsh. but i still wonder how you can be so certain the trend will work as it did last time and assume you must have a reason?

[MrAlanKendall]

@sweatykev01

Gold rose from 1962 to 1982. Gold fell from 1982 to 2002. The Government lowered rates from 1982 to 2009 causing the housing bubble and a recessing in the 4th decade. Every 4th decade is a major recession due to the lowering of rates (1890's, 1930's, 1970's and 2010's are all 40 years apart).

[sweatykev01]

@MrAlanKendall it works but no matter how far back a trend is traced it's impossible to be certain that past trends will allow you to predict the future. what stops things differing this time? Cyclical markets exist, manipulating them is tough. Buffett on gold : "It gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head."

[MrAlanKendall]

@sweatykev01

I am not predicting the future, just following the trend. In the 70's the Govt was printing 20 million per day and home prices jumped six times by 83 when the foreclosed homes were sold off in 76 (sell of foreclosures depressed prices and held down inflation prior to 76). Today the Govt is printing and releasing 4.1 billion dollars of cash per day. 4.1 billion per day is 200 times more than the 70's. Massive inflation will occur between 2016 and 2027. I am conservative.

[FortNikitaBullion]

@MrAlanKendall So when is a good time to start buying silver and gold? I've been waiting for it to correct downward for some time, for the 2-year cycle. Any guesses when this will be?

[MrAlanKendall]

@FortNikitaBullion

I am thinking that the Alt-A and Option Adjustable Rate loans that adjust in 2011 might cause another down leg like 2008 and November 2011 will be the best time to buy.

[FortNikitaBullion]

@MrAlanKendall Any particular reason you say November 2011? This is interesting stuff.