Fannie Mae and Freddie Mac, Lehman Brothers, General Motors and dozens of other companies that have all either morphed or collapsed since the “Great Recession” came on the scene, got bailed out, sold or merged in 2008.

Too Big to Fail


There might be some who think we’re past the worst of it.

Things are getting better aren’t they?  The nightly news anchors tell us that all the politicians are back to work.

Rates remain low, housing is getting more expensive as the REOs have been absorbed and the stock market is at all time highs.

There remains an unease on main street. Unemployment remains high and the jobs that are available don’t pay enough to support the same life style that the middle class once had.  Those who lived in the 50’s; middle class families enjoyed higher standards than they do today.

What happened to us?

Ozzie and Harriet Nelson, the Cleavers, and single parent Andy Griffith would have a hard time meeting their financial obligations today. The Brady household with 3 boys and 3 girls would certainly not be able to afford Alice, the housekeeper today.

This is controversial, but it needs to be said. Our cash system that is supported by the full faith and credit of the USA is vulnerable. The US Dollar, the world reserve currency since WWII is being supported with a printing press and the Federal Reserve that has been until recently buying  $85,000,000,000 (billion) per mo. of USA Treasury promissory notes. This is not sustainable.

There is a crisis brewing that can threaten your way of life. Where you shop, where your kids go to school, your savings and where you vacation will be impacted if inflation returns… and it will.

Save money for a rainy day, the traditional wisdom says. Where you ask?
Here is the list:

Think this through. Every saving vehicle that you invest in has some risk. Everything you invest in offers increase of your capital. They are not equal.

Here is what you should look at with each investment.
1. Income
2. Depreciation
3. Equity build up
4. Appreciation
5. Leverage

Then look at a home and compare a rental home…    it should start to make sense.

The future of the U.S. real estate market in 2013 is bright
Real Estate Is Back – 2013 ActiveRain Survey


This is Confidence


Knowing that you are building equity and that your kids will have a place to come home to.

Owning a home will be one of the best things the average middle class citizen can do to protect them self from aggressive inflation that is just beyond the horizon. Read the rest of this entry



Renter  Look Ahead

The curve is falling

 Make your move! 

The landlord might come knocking and say  “the rent is going up…Sorry but…”

Occupancy rates in residential properties are rising,  vacancy rates are falling, even in the hardest hit areas.


US Census data shows that


Mortgage Rates remain low.  Rents are going up.  The population has increased to 311.6 million people in the USA.  Demographers expect population growth to pick up when the economy rebounds fully.


Vacancies drop when the number of households grows faster than the number of housing units.   This trend is happening nationwide.  This is great for owners in hard hit markets like Nevada, Florida and Arizona.  It makes for some challenges in tight job rich metro areas and markets like coastal California.

Read the rest of this entry

There are Forces at Play




In 2008, you could have bought a single-family home in many parts of the country for as cheap as four times yearly rentals. (A house whose rental income was $1,250 per month, or $15,000 per year, could be bought for as little as $60,000.)


Location is a major factor in real estate investing. This was difficult to find in prime areas where values tended to be 8 to 10 times yearly income.   In 2010 the 4 x factor was trending more like 7 x.   Good real estate locations are always in demand. Read the rest of this entry

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