The Coming Correction...Where Will YOU Be?

There's a HUGE correction coming. It's not a matter of IF... it's a matter of WHEN.

It's impossible for it NOT to happen. Prices have been steadily climbing, and it seems as though the banking industry has learned absolutely nothing from the crash of 2008. Credit isn't quite as loose (due to government regulation), but the reserves that American banks are holding are LESS THAN 1% of their deposits. And the government is printing money faster than ever. The debt ceiling continues to climb, and the world "trillion" has become commonplace.

So, what does this mean for us as investors? What it means, is that if you're playing "the appreciation game," you're in for some troubled times ahead. The appreciation game is where investors somehow lose sight of basic fundamentals....monthly ROI, property condition, etc. They are in markets that are considered "hot." Whether they are flipping or buying and holding, part of their strategy is banking on the fact that their properties are going to appreciate.

Often times, ego comes into play, and the investor wants a more "prestigious" property in a hot market. As such, he or she may be holding on to a single family home that rents well...for now. But, when the correction comes, what will happen in these "hot" markets? Well, the opportunity for a downturn is GREATER in these markets. The likelihood of losing a renter in a fancy home is also greater. The likelihood of selling that home when credit becomes scarce, and the market turns will be near IMPOSSIBLE.

The smart investors understand this. Ego does not come into play. Less expensive properties in "unsexy" markets make more ROI now and make more sense for the future. When the bottom falls out, and it surely will, how much will a $50K property be worth? $48K, $45K, maybe even $42K? Yes, there may be some loss of value, but in these homes, appreciation is NOT part of the investor's equation. Making money is. Moreover, they will ALWAYS have a property that is rentable...no matter what market conditions are.

Are you prepared for the coming correction?

Let's talk about it. CLICK HERE to book a free consultation with me.