Real Estate News & Commentary by Chris McLaughlin, February 10, 2009
http://www.shortsalesriches.com/welcome.html
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“2 Careers That Boom in a Recession!”
I’ll tell you about one of these for fr*ee
in my no-charge, no-cost, no-obligation
webinar right here on tonight at 8:30 PM ET, 5:30 PM PST:
https://www2.gotomeeting.com/register/896320431
Why would I do that for no charge? Because
I want a chance to tell you about the other
high-income opportunity, too.
And I can’t do it in an email.
But If you’re finally ready to blast out of
this economic mess, then get a move on… I’d
hate for you to miss out, because we always fill
up a day or so early. See if there’re any spots
left:
https://www2.gotomeeting.com/register/896320431
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Mediocre. Pathetic. Lame. These are just a few of the terms that came to my mind when I read over the details of the “stimulus bill” last night. The $789 billion at least cuts $100 billion of wasteful spending that would have otherwise been spent, but guess what?
It does little to address the real issue: HOUSING.
The $15,000 tax credit for ANY buyer of homes didn’t make it in the final package. The U.S. Senate tried, but the House of Representatives balked – too much other pork they need for their constituents I guess. The National Association of Realtors lobbyists didn’t muster enough political power to get it done. What did get in the non-stimulus bill?
An $8,000 tax credit for first time home buyers that is now nonrefundable. Right now a first time homebuyer gets a 7,500 tax credit that must be paid back over 15 years. So this bill is an improvement over the last meager effort, but let’s face it folks: it isn’t going give us the shot in the arm that we need in this market. Get ready for more short sales, more foreclosure, and declining home prices.
So, when they figure out how badly they’ve screwed this up, what we’ll see next is an effort to further reduce mortgage rates. That’s nice and all, but what we’re finding is that even low interest rates aren’t getting folks off the fence. Cash in their pocket will. And that’s why the $15,000 tax credit would have been just the medicine we needed. Shame, shame, shame on wasting almost a trillion dollars and not really addressing the real issue!
And what do the objective people say? The Congressional Budget Office says that only 1.2 million to 3.6 million jobs will be added through 2010. Obama’s number crunchers says 4 million. If he’s wrong, and the lower end of the CBO office is correct, this is going to be the most expensive boondoggles ever. Ugh.
Now, on to our real estate investing section…
Living on $850 Per Month
Does this sound like an enticing scenario? If not, better start making some type of alternative plans for your financial future because left to the federal government’s best economic advisors, this is what the average American worker can expect to receive in the form of inflation adjusted Social Security retirement benefits.
To add insult to injury, the standard retirement age is expected to continue creeping upward from 65 years to the current 67 for younger workers and as late as 70 to 72 for future retiree’s. Remember, although the dollar amount might eventually increase, the inflation adjust level is expected to remain at the equivalent of $850 in today’s earnings…now ask yourself, are you able to actually live on a mere $850 per month?
Not just for one or two months, not even for six months or a year…but actually live on $850 per month for whatever time you have remaining at retirement? Even if you somehow manage to keep working into your early 70’s (and we don’t know too many companies beating down a door to hire elderly workers for more than Walmart greeters or a few part-time baggers at the local grocer), how will you feed yourself, pay utilities, buy clothing, insurance, mortgage and property taxes on the equivalent of $850 per month? Remember, the average American now lives to their mid 80’s and experts believe medical advances could extend that to the 90’s or beyond. Hmmm, $850 a month for 15 to 25 years?
Buying a car, taking a vacation and eating out will become unaffordable luxuries for those attempting to maximize monthly benefits on a dwindling standard of living. So, how much will you need to set aside? In today’s current earning capacity, you would need over a half million dollars to generate an additional $25,000 to $35,000 income.
On the other hand, you can use leverage to purchase short sales real estate and easily double your retirement benefits with as little as one rental. Heck, splurge and purchase two and you might be able to afford a round of golf now and then. While you are at it, why not go ahead and pick up a half dozen or maybe a full baker’s dozen…flip for short term profits or hold until retirement to build a profitable real estate retirement that only kicks in once you need it. Allow tenants to pay the mortgage in full while you continue to work full-time without the headache and hassle of hunting down elusive part-time jobs over the years.
Instead of depending upon the government pension plan, take steps to secure your future with short sales with these simple to start steps:
1. Calculate how much you would need to live comfortably into retirement.
2. Calculate how many remaining years you have until retirement age.
3. Determine how many rentals you need to buy to reach your retirement goals.
4. Finance each mortgage to be paid in full by retirement age (ie, fixed 15 year term, 20 year term, 30 year term etc…).
5. Search for homes where rental rates will cover the cost of PITI for the mortgage term outlined above. Purchase enough homes to make up the difference between your government and private pension and additional funds required to provide the standard of living you can live with.
See you at the top!
Chris McLaughlin
http://www.shortsalesriches.com/welcome.html
P.S.
This week’s webinar replay is right here…
http://www.webinarwizards.com/custom/index.cfm?id=170879
P.P.S:
Wow! This just ranked as the most watched real estate
investor training video ever in a single day!
It’s pretty obvious why once you see it . . .
https://commercial.infusionsoft.com/go/mmic/a181/
Check it out now.
Copyright Loss Mitigation Institute 2009.
All Rights Reserved.
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About the author:
Chris McLaughlin is widely known as America’s top
Real Estate Attorney and Investment Consultant.
* As the top Florida foreclosure and pre-
foreclosure expert, he oversees more than
100 short sale & REO closings each month
* Long-time authority on real estate investing
and rapid flipping of distressed homes. Owns
portfolio of nearly 100 high-value, high-profit
properties
* Owner and Supervising Broker of one of Florida’s
largest Real Estate firms, running 4 different
offices, supporting nearly 450 agents, uniquely
positioning him to help thousands of investors
make money in the biggest market opportunity ever!
* Highly sought-after speaker, consultant, and
seminar leader for current trends and hot topics
in Real Estate Investing, Entrepreneurship, and
Wealth Building
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