Friends, I'm an intuitive businessman. I make decisions based on hunch. I also do pay attention to trends that give me a feel for what is to come.
So with that in mind Im going to layout why I think the second wave in real estate boom is to come. Now this is specific to Florida, so if you have a concern about your area look me up in facebook under Wes Savage, Jacksonville Fl network and I will answer specifics regarding your area.
Why do I think things are about to change? Well for the record we have homes that can be rented out and paid for in a year and a half via rent. By my investor calculations thats a 72% rate of return. Hows your stock portfolio doing? Ive got 40 in the area right now in low income areas for under 10k. Ive got 100-110 in the 10k to 20k price range and Ive got 120-130 in the 20-30k area. I have properties in upper income areas 70% of current value because the public have turned their backs on Real Estate and things implode when others do so. Ive sold 5 homes in the lower areas this week and Im working on a buyer list. there is also many people ready to put their money to work in lending hard asset loans.(again).
What else:
---Building starts are below demand for the second year in a row. So builder inventory is shrinking. More specifics on this later.
Stock markets have rallied in the last couple of weeks as the Geithner plan is revealed.... resolution trust corporation(RTC) style liquidation part deux. Investors and the government will make 20-30% on their money. Dont sweat the deficit required to do this. The goverment is becoming a silent partner to those who know how to move and get things performing again. Folks the banks have already marked their mortgage holdings down 80%. The protfolio however is 85-95% performing. Lets do some quick math. 6% on 100k is $6000(6% ROI). The street as discounted all mortgage CDOS to 20% on the dollar. So that 100k mortgage is now valued at 20k . Whats $6000 coming in on a mortgage bought for 20k? 30% 30%!!!!!!!!!!!!!! the government has to pay back debt at 4.94%. Damn thats extortion. I hate people who dont understand the government will make a killing!!!! They will pay back the debt in 3-4years and keep getting the income stream for the next 26 years!!!(all those 30 year mortgages)
Feel confident about our country yet?
-----Mortgage applications are up 38% from a week ago according to the MBA(Mortgage Bankers Association). If this continues mortgage ops folks will start HIRING to handle the onslaught. Any unemployed mortgage professionals out there? LOL I need a job too. LOL. Jacksonville had Everbank a regional lender hire 200 new people for loan operatrions.
Ive talked to 20 of my contacts this week to wake them up as to how cheap things are. Heres what Im hearing...."mother f*******g kidding?", "No way?", "My god". These people knew what they were paying for 2 years ago.....kid in a candy store now.!!!
More to follow. Im not listening to doom and gloom now. By the time people start figuring out the bad news is over its too late the masterminds are out off the porch on the hunt. DONT MISS OUT!!!!!!!!!! Trust me beg borrow andsteal to get 50k out there and you could be pocketing 100-200k in just 3 years.
More as to strategy to follow.
Your servant,
Wes
