I am concerned about what is happening with our families' future and security. I know you are concerned as well. I am sure we can agree on the following.
1. The stock and bond market is a crap-shoot and it's probably being manipulated by the "insiders."
2. Money in the bank pays very little interest, and this will probably continue in the foreseeable future.
3. Great inflation in the near term is the federal government's only option to finance our exploding national debt and is the inevitable result of the current and projected government spending.
Here is a short story you may enjoy.
1938 My dad and his brother came to Florida on a motorcycle with $10.00 in their pockets.
1964 Dad told me he could have bought all the land from Orlando to Daytona for a dollar and a half an acre in 1938. I asked my dad why he had not bought land. His answer: "I did not have $1.50 and the banks were broke.
1970-2003 Real property values and rental rates generated steady growth and returns. This, in combination with creativity, hard work and planning, resulted in excellent returns with minimum risk.
2003-2006 Insanity of buyers and lenders, fueled by government policies and agencies (Freddie Mac and Fannie May) in concert with Wall Street, flooded the market with funny money. This caused insane inflation in real estate prices. During this time, prices being paid for real estate by speculators made real estate investment (not speculation) impossible. The income generated by the property was insufficient to provide a reasonable return on outrageous purchase prices being paid by the speculators.
2007-2008 The bubble of insanity burst. The banks went bust and would no longer make loans.
2009 It's 1938 again!
So what has this to do with the future of our families, children and grandchildren? To protect their future from out of control inflation we must invest in commodities and be out of excess cash positions. We must generate income higher than the banks will pay with good security of our capital. Real estate bought at or close to the bottom of the market, where we are now, which generates rental income is one of the best commodities available. While I am not finding land for $1.50 an acre, I am finding opportunities daily that I have never seen in my 38 years in the real estate investment and management business (actually 50 years if you count the years I was dad's helper.)
We have recently found and purchased well located highly desirable properties for 30 to 60% of prices paid in the recent past or of their current tax assessments. Yes, I said 30-60%. With our management, these properties consistently produce rental returns multiple times that which would be generated by bank interest on savings accounts and CDs. We expect that the resale of these properties in a few years will generate more than outstanding profits again offsetting inflation.
As government, in its infinite wisdom, has limited the number of loans an investor may have, no matter how trustworthy that investor may be, it is necessary that I find private funding sources.
We therefore propose the following.
If you are looking for a fixed rate guaranteed return substantially higher than you are currently earning, we will provide a mortgage investment for a period of time designed to meet your needs. Or, if you wish a higher rate of return, we offer an opportunity to partner with us on an equity participation basis, adjusted for your risk comfort level.
Please contact us as soon as possible to discuss the many opportunities and potential structures to meet your needs. No amount is too large or small. It is imperative we act now. Doing nothing is not an option! Please give me a call or e-mail me. I would appreciate your comments and thoughts. I can be reached at 407-718-5300 or philiptcowherd@msn.com.
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