Mid-Day Market News & Commentary by Chris McLaughlin, December 19, 2008
http://www.shortsalesriches.com/welcome.html
——
Have you been missing our amazing Recession Proof Investing webinars because you haven’t found the time? Make time to see the most amazing webinar ever created, the one that people are raving about…because it is giving hope to those affected by this crazy economy. And that hope has turned into real cash for so many. See it all today, there are only 17 spots left:
https://www2.gotomeeting.com/register/371290260
——
President George Bush decided to throw out a lifeline to the automakers, a possible retreat from his “orderly bankruptcy” comments yesterday. Bush noted that with the country in a severe recession, “Allowing the auto companies to collapse is not a responsible course of action.” Bush has approved $17.4 billion in rescue loans, part of which comes from the $700 billion TARP, with the government having an option of becoming a stockholder in the automakers.
Now on to real estate investing education …
Do You Hear What I Hear?
During this most festive of holiday season, the sound of “cha-ching” normally rings just as loudly as that of the carolers and party-goers but this year is different. In fact, instead of singing and the sound of cash registers ringing the average short sale investor is more likely to hear wailing and gnashing of teeth from investors both near and far as the Federal Reserve reports that Americans have lost $2.8 Trillion in Net Worth…since last quarter!
Meanwhile, charge-off and delinquency rates for residential real estate loans have reached 1.45 for all banks and a whopping 1.66 for the 100 largest banks. Delinquency rates for residential real estate have now surpassed 5.08 for Q3 of 2008; the highest rate for residential real estate in over 25 years. With the economic news at home sounding so lackluster, it might lead some to seek returns in the foreign exchange markets. So, should potential short sale investors sink funds into global money market accounts or continue to pursue opportunities here at home in the current “buyers market” for real estate?
If the news domestically is hard to hear then consider the global perspective; entire nations are going bankrupt. Iceland, Hungary, the Ukraine, Pakistan and others are either facing bankruptcy or in the midst of a massive bail-out by the International Monetary Fund (IMF). Lest you think “it can’t happen here” consider this; Argentina went bankrupt as recently as 2001 as did Russia in 1998. Once an economic powerhouse, Germany has gone bankrupt twice in the recent past including 1923 and 1945. With interest rates in excess of 20 percent, Argentina is attempting to inspire investors to take a chance on investing in their nation; to date, there has been an apathetic response at best.
According to Stephen Jen, a currency specialist with Morgan Stanely, a 1 percent drop in growth could reduce the flow of capital to “threshold countries (those in a financially precarious situation) by more than half! Should this transpire, the IMF would not have enough reserves to “bail-out” each individual nation resulting in Argentina style cycle of events including frozen bank accounts, withdrawal caps, hyperinflation and social unrest. Dare to guess which nation “guarantees” the IMF slush fund should it run dry? Yep-the good ole USA. So much for “Plan B”. As these threshold nations face economic disaster, the trading partners and surrounding nations would be exposed to further strain…setting the stage for a global economic meltdown.
Experts such as Nouriel Roubini are already calling for the most severe global crisis since the Great Depression while others like Ron Paul are openly questioning the Federal Reserve about contingency plans in the event of global economic collapse. Plain and simple; fiat currency around the world is risky business even with the prospect of double digit returns. On the other hand, real estate has historically fared well even during dollar devaluation.
Five Favorite Facebook Tips to Build Your Short Sale Empire
Whether you are a novice real estate agent or veteran short sale investor you probably realize the power and influence the Internet holds in building your success. With over 80 percent of buyers beginning their search online, the Internet is a vital tool that few can afford to ignore. However, when it comes to the use of social media applications, far fewer people understand how to put these powerful resources to use for more than just socializing. The fact is, with a little tweaking and adjusting, Facebook and other social media sites have the potential to provide powerful – and free- tools to help with your day to day business or investing needs.
Contrary to popular opinion, Facebook isn’t just fourteens; here are some of the best business applications you can use to build your short sale empire:
1. Demographic Research. This little known Facebook nugget is a fun twist to standard demographic research. Find the Facebook “Insight Corner” to locate advertising information and find out how many people reside in a specific zip code or other identified demographic data.
2. Syndicate Yourself. Set up a Facebook page then import the RSS feed from your blog to the notes application and distribute to all your friends and associates.
3. Send Video Messages. Showcase homes, send out a video blast of recent news or simply make a personalized greeting. It’s a simple, personalized and cost effective way to make a big impression with a small budget.
4. Collaborate. Combine Facebook with Google documents to collaborate in a secure environment. Share everything from text to excel spreadsheets with ease while tracking changes, making comments and sharing information.
5. Picture It! Use the mobile application to upload photographs from your cell phone automatically. It’s a great way to capture information on prospective short sale properties on the spur of the moment or simply share information with others in real time.
See you at the top!
Chris McLaughlin
http://www.shortsalesriches.com/blog
P.S.: Don’t miss our webinar tomorrow, Saturday, at 2 PM EST! We’re holding this Recession Proof Real Estate Investing webinar once again on a weekend to accommodate all those who are unable to join us at night! Click here, there are only 17 spots left:
