I figure that at least, I owe you guy’s some GOOD advice…
We all know how long readers here have SUFFERED through all my (let me get this quote right) “negative speculative rantings” So here it is…
What should I be doing RIGHT now, in THIS market, if I am just starting out???
First…simply BUILD CASH!!! I can not over state this. I know, I know, nothing new there?? But listen…ask yourself some questions?
Maybe you have a beautiful Harley that’s worth $15,000 sitting in your garage? Do you think it might be a good idea to turn that into cash right now??? Of course it is…If this economy gets slower bikes and boats are the first thing people start unloading. Personally, I can’t THINK of a better economic indicator than used boat sales.
What??? Boat sales??? Maybe this guy SHOULD be taken off this forum??
Now let me explain…When times are good people buy NEW boats. 3 years ago a friend of mine who sells new boats COULD NOT KEEP UP with demand. THAT HAS ALL CHANGED. Now people are selling those boats so we have an INCREASE in used boat sales and a DECREASE in new boat sales. (I can already hear the comments on that theory, but I’m telling you it has never let me down) Want to get a good read on your local economy???Check out boat slip availability at your local Marina. Mine’s offering INCENTIVES and PLENTY of SPACES!!! NEVER SEEN THAT BEFORE. Gee I wonder what’s going on here??? Maybe, just maybe, those crazy spending Americans ARE really slowing down??? Maybe they’re worried about SOMETHING?? Oh I forgot, be POSITIVE!!!
Getting back to the topic…Before it gets bad unload some of this stuff and turn it into cash. All business requires some PAIN. Now, if riding that Harley keeps you off the bar stool then KEEP IT!! But…if like most people out there it’s a little used toy SELL IT, same with boats, jet ski’s, anything that you can replace later at the same or better price.
BUILD CASH, BUILD CASH!!!
WHY??? Because in my opinion we will soon see lending go back to NORMAL. That doesn’t mean I think no one will get loans. What it does mean is you better have one of those things banks used to call a GOOD DOWN PAYMENT!!!
Next UP…CREDIT. Get squared it away NOW!!!
If you have good credit, GREAT, go out and get a line established on your home. Your gonna need it. I know that’s scary to some, but think about it. A bank gives you a $100,000 line on your house and a check book. It’s ready when your deal is. JUST MAKE SURE it’s a GOOD one. Remember what your risking. Also remember that is EXACTLY what banks are going to start doing…putting the RISK on you!! They took too much of that risk a few years ago and now they’re paying BIG TIME. BUT…The ADVANTAGE we have is WE are buying these homes at BIG discounts, they paid RETAIL!!!
Just some POSITIVE thoughts!!!
Hope it helped SOMEONE.
Sorry for any errors in spelling, grammar, punctuation, or proper use of the English languauge.