According to reports on Marketwatch.com, the Treas. Sec. said to congress; “If you have a bazooka in your pocket, and people know you have a bazooka, you may never have to take it out.” Well he had to take it out and he used it.
There was an immediate reaction from world markets. The effects of this action served to simultaneously strengthen the value of the dollar against other currencies, caused a lifting of most equities markets and gave many foreign investors and central banks confidence in the efforts to stabilize the American housing market.
So what does this mean for the real estate investor? Well if you have watched the recent unemployment numbers, you have seen the unemployment rate jump to 6.1%. This means a lot of professionals are out of work now but won’t be for long.
If you think they desire to go back into the corporate world, for the most part you would be wrong. Many of the professionals that were laid off will take the opportunity to start their own companies and make their own way using their talents to create new businesses and new industries.
This is a great opportunity for those of us wishing to create Cash Flow Monsters. As time wears on the economy will get stronger. The dollar will strengthen and we will slowly lift out of the economic malaise caused by this recent downturn.
Some experts have labeled our economic status as a recession and others argue that it is not an official recession. What ever you call it is not important. What is important is the fact that whenever the economy slows people get laid off. When the economy starts to move again, many of these professionals choose to start their own companies and that presents opportunities for forward thinking real estate investors.
Think about it, these people will need warehouses, office space, retail locations, storefronts and the list goes on and on. They will not have enough money to buy their own buildings so they will usually rent! They will not rent the high-dollar, ‘A’ class buildings. They will look for discounted space at the ‘B’ and ‘C’ quality buildings.
In other words, they will look to rent from the ugly little buildings with low rents. They will be renting from the properties I call the Cash Flow Monsters!
Michael Gross is the President of Dividend America Mortgage and has been in real estate for over 20 years. He has been a builder, a Realtor, an appraiser, and currently he is a lender and an active real estate investor. He uses all of his experience and knowledge to show individuals how to properly use a mortgage as a tool to help create greater wealth through real estate investing. For more information on residential and small commercial loans please contact Mr. Gross on his direct line at 770-350-7373 or via email at mgross@dividendamerica.com
