foreclosure

You've no doubt seen these or study them. Glossy ads or four-color propagates in publications and papers promising to instruct you every one of the juicy information regarding successful real-estate investing. And all you have to do to learn each one of these real estate investing surface encounters chuck russo secrets is to pay a rather high sum for a one-or two-day seminar.




Often these types of slick real estate investing workshops claim that you can make intelligent, profitable real estate investments with simply no money straight down (other than, of training course, the large fee you purchase the seminar). Now, how attractive is that? Make a make money from real property investments you made out of no funds. Possible? Not most likely.




Successful owning a home requires cashflow. That's the character of almost any business or investment, especially real estate investing. You put your hard earned money into something that you hope and plan can make you more money.




Unfortunately not enough newbies towards the world of real-estate investing believe it's any magical kind of business where standard enterprise rules do not apply. Simply set, if you would like to stay in property investing for more than, say, a evening or two, then you're going to have to come up with money to use and make investments.




While it could be true that buying real estate with absolutely no money down is easy, anyone that is even made a simple investment (such as buying their particular home) is aware there's a lot more involved in real estate investing that will set you back money. For example, what about any necessary repairs?




So, the primary rule people new to real est investing should remember would be to have available cash reserves. Before you determine to actually do any real-estate investing, save some cash. Having just a little money in the bank once you begin real est investing surface encounters chuck russo can help you make more profitable real estate investments in rental properties, for example.




When real-estate investing inside rental attributes, you'll want every single child select simply qualified tenants. If you've no income when property investing within rental properties, you could be pressured experience a much less qualified tenant since you need somebody to pay you money to enable you to take care of fixes or attorney at law fees.




For any type of real estate investing, meaning local rental properties or even properties you purchase to resell, having funds reserved can enable you to ask to get a higher cost. You can require a increased price out of your investment because an individual surface encounters chuck russo won't feel financially strapped as you wait for an offer. You won't be backed into a corner and forced to accept just any offer because you desperately need the money.




Another downfall of many new to real estate investing is actually, well, greed. Make any profit, yes, but do not become therefore greedy that you simply ask regarding ridiculous local rental or resale rates on all of your real estate investments.




Those not used to real estate investing need to see real estate investing being a business, NOT a spare time activity. Don't believe that real est investing is going to make you rich overnight. What company does?




It requires about six months to figure out if real estate investing in for you. If you've decided in which, hey I really like this, then offer yourself a few years to really start earning money. It usually takes at minimum five years to get truly prosperous in real estate investing.




Persistence is the key to success in real-estate investing. If you might have decided that real-estate investing is perfect for you, surface encounters chuck russo keep plugging away at it and the rewards will be greater than you imagined.

The manic depressive market wildly swings up and down on each new news story: The Fed is meeting at Jackson Hole on August 27 possibly to discuss QE3 (or not), and that news may pump up the stock market. But China's banks seem to be using Enron's accounting manual, Europe's banks need liquidity and are loaded with bad debt, and U.S. banks only temporarily TARPed over trouble. Gaddafi's regime in Libya appears over, but Libya's oil output may not fully recover for years. Venezuela wants banks to open their vaults and send back its gold, but Wells Fargo says gold is a bubble. Pundits say gold is a barbarous relic, but exchanges and banks are now using gold as money. The U.S. is headed for hyperinflation with skyrocketing stock prices, but on the other hand, we seem to be deflating like Japan and doomed to a deflating stock market for another decade. Whom do you trust and what should you do?

No one knows where the stock market or U.S. Treasury bonds are headed tomorrow, but in my opinion, here are some fundamentals to consider.



The Bad News Isn't Going Away

Until we have real global financial reform and restrain the banks, we won't have sustained growth. The stock market hasn't hit bottom. There's a crisis of confidence in banks and all currencies. We haven't taken effective steps to tackle the U.S. deficit through productivity. We haven't examined spending to eliminate fraud and waste, and we haven't addressed our need for more tax revenues by eliminating the Bush tax cuts (for starters).

Savers are punished by "stranguflation:" negative real returns on "safe" assets, declining housing prices, and rising costs of food, energy and health care. The Fed touts the falling cost of I-Pads, but how often do you buy one of those, and how often do you eat?

Good News (for Now)

The USD is still the world's reserve currency. Even though we devalued the USD, there has been a global flight to U.S. Treasuries pushing down our borrowing costs (yields). No one in the global financial community feels the U.S. has done its best to correct our problems, but severe problems in Europe, China's inflation, and Middle East unrest has money running to the U.S. Since we've devalued the dollar, we appear to be a bargain for foreign investors, even though they are terrified by our money printing presses and the potential for inflating commodity prices in the long run.

How did I play this? My own portfolio is currently more than 20% gold with some silver, and I bought out-of-the-money call options on the VIX when it was in the teens with maturities of 4-6 months. This is "short" stock market strategy, one could have also done well buying puts on the S&P a few months ago. In the first big stock market downdraft in August, I sold the options when the VIX hit the high 30's, and I'll buy more options again if the VIX falls again. Many investors are not comfortable with options, and this strategy isn't appropriate for everyone. The rest of my portfolio is chiefly in cash or deep value opportunities.



What Happens Next?

No one knows for sure, and anyone who tells you he or she does is selling snake oil. The situation is fluid. We tried to reflate our deflating economy. Our massive dollar devaluation may encourage investment, because it's protectionist. It reduces our cost of labor, among a few other "benefits." The problem is that the Fed has printed money, and we haven't done anything to position the U.S. for greater productivity. We're trying to inflate our way out of a problem without investing in productivity. This is a very dangerous way of attacking this problem. Even more "stimulus" would just be an attempt to inflate our way out of our long-standing deep recession. That's the foolish and unsuccessful strategy we've adopted so far. That could lead to runaway budget deficits (our deficit already looks intractable) and bring us to double-digit inflation. Even the European flight to US Treasuries may not save us from a deeper recession in that scenario.

If we don't overreact -- and we may have already overreacted -- our dollar devaluation results in our foreign trade situation first getting worse (as it has now) before it gets better. Now is the time (actually, we should have started years ago) to spend capital to increase U.S. productivity. The dollar's plunge relative to other currencies will eventually make us more competitive. This will be good for blue chip companies, in particular those that own real assets and manufacture items. The Fed and Washington may do anything, however, so one must watch the news.

What does this mean for the U.S. stock market? In my opinion, it is currently not good value and feels like the 1970s when we experienced a recession followed by inflation. One should consider staying mostly in cash and expect stocks become cheaper. One might miss an interim rally, especially if the Fed announces QE3 (more "stimulus" and money printing) or more bank bailouts, but that is like using Kleenex laced with sneezing powder. We will see stock prices even lower than they are today. The old paradigm dictated that stocks were a buy when P/E ratios were 13 or less (and many are well above that), dividends at 4%, and book values at 1.3 or less. (This excludes oil companies, which tend to trade at lower P/E ratios in general.) I believe we'll see much better deals in coming months. In 1978/79 P/E ratios sank below 7 for blue chip companies.

Should one buy U.S. Treasuries with long maturities? The long end of the bond market doesn't reward investors due to the potential of rising interest rates. If interest rates spike to double digits, then one can reassess the situation.

Long term investors should consider buying commodities or companies that own physical commodities. We're running out of key commodities especially related to agriculture and fertilizer. Washington's brand of the latter isn't the type we need.

funny.. i learn from this thread that there are "good" capitalists and "bad" capitalists.. only if it were for good capitalists everything would be fine... there are no good/bad capitalists. concentration of wealth and diminishing marginal profitability lead to rent-seeking, monopoly seeking, corruption and imperialism for all eyes willing to see. it was always like this. it always will be. good thing the us citizen is at least seeing the present corruption. maybe with some critical thinking he will also connect the dots and see the omnipresent corruption indogenous to capitalism. the tale of perfectly competitive free markets is a tale. there never has existed one there never willl.. maybe fruit/vegetable markets, which now are facing extinction brought to you by the wonderful capitalist monopoly-seeking inventions of monsanto...

the us entered the first world war by organising false flag attacks on its vessels so that capitalists could sell nerve gas to both sides. the us entered the second world war by allowing japs to bomb pearl harbor so that capitalists could make more money. the us organised another false flag attack on ny and killed 1 million iraqis so that oil could keep flowing and haliburton could make a few bucks meanwhile. there's no "clean" version of capitalism. wake up!

and for the nth time.. no, obama is not a marxist. if he were, he would not be waging imperialist commodity wars in afghanistan and socialising bank losses. marx would probably be severly frustrated if he knew people called slick imperialist puppets marxists...