What you do now is the TOUGHEST thing there is to do…
Jimmy Rogers is a LEGENDARY investor, one of his quotes sums it all up.
" The hardest thing to do for most people is to do nothing. People feel as though they ALWAYS have to be DOING something. What usually happens is people make their first investment, they’re scared because they’re new to this. So they research, dig, grind, and find a great opportunity and they make money, they were PATIENT. They do this a few times and make more money. Then they make their mistake… They now think they KNOW something, and as soon as that happens they lose BIG."
Here’s my philosophy… When the DOW, Real Estate, Bonds,and The U.S. Dollar are all falling. I don’t have a philosophy! Something is happening here that NO ONE understands.
I KNOW it’s as bad as I’VE ever seen it. When that happens your play is to KEEP what you already HAVE. People in this country are about to experience a huge draw down in wealth. Now is NOT the time to being trying to scalp $10K or $20K on a home that is falling in value every month. The winners will be the guys who are still around WITH MONEY when this all settles.
Joesph P. Kennedy sold EVERY stock he owned in September of 1929, one month before the crash. He did that because he was getting tips on stocks from shoe shine boys. He said, “When shoe shine boy’s know more about the market than I do it’s time to sell.” Basically Joe and his family rode the entire deprresion out with very little effect on their finances. HE KEPT WHAT HE HAD!
I’ll still buy real estate but it’s got to be a BLOW OUT price to get me in.
I have a friend who just finished a 2 bed 1 bath starter home rehab, completely gutted it. NEW EVERYTHING. Priced it at $189K, it sat, dropped it to $179K it still sat. Now this is about as low as it gets around here for a starter home and it’s ALL NEW inside and out! Still for sale. I don’t know how bad this is going to get, but I sure as hell am not going to try and figure it out with MY MONEY.
What do I lose by sitting on the sidelines here??? Someone please tell me??? Because from where I sit the sideline has tremendous upside right now. I keep my capital, my credit rating, and my sanity. Pretty good in my book.