Enjoy this week's Investor Success Podcast, with special guest, David Phelps as we discuss how to prepare for coming changes to the real estate market cycle.
- All markets move in cycles including the stock market and real estate market
- In 1980 when David did his first deal interest rates were 13.5% and he still could cash flow
- Pre-2008 we had a strong economy, low unemployment and low national debt
- Market cycled strong with government back loans which led to stated income loans, no doc loans and the sub-prime mortgage creation
- Stocked dropped 40% in one week and the real estate market began to collapse
- Today we have massive debt of nearly 20 Trillion, live on a fiat currency and no gold standard that allows the federal reserve to print as much money as they need while keeping interest rates artificially lower then ever before
- Equity and cash flow positioning is now important again. Do you want to invest in $200k - $300k houses that may rent for $1800 per month and hope they go up in value or invest in $100k houses that will continue to rent for $1200 per month?
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