The last Property & Paper Live zoom was largely a download of what I took away from the DME (Diversified Mortgage Expo) in Nashville, along with…
A scenario from Eric, a real estate agent in Southern Utah, who has a client who wants to sell a piece of land, and was thinking that seller financing with the subsequent sale of the note could be a good option.
One of the themes from the conference (and an issue of debate on our call) was the suggestion that the note business, particularly defaulted institutional bank notes, were getting ready to come online aggressively over the next 3 years.
Eddie Seiler from the Mortgage Banker’s Association revealed the trends they are seeing…
- Vertical credit card debt levels
- Student loans
- FHA delinquencies at 12%+ expected to turn into
- Increasing foreclosures by the end of the year
Melody Wright echoes these sentiments, saying that the data we’re being given about the real estate market is not comprehensive or accurate in many instances.
She asserts that we have more of an affordability problem than an inventory problem, and that things could get tough in many markets over the next few months and through the end of the decade.
Bill Bymel recently released a book, “The Storm” and says he is tripling his private fund to be ready for the opportunities he sees coming.
Sri, a long time contributor on our calls and a seasoned non-performing note investor, thinks this is overrated and attests that many $100mil – $200mil hedge funds have left the note space because there simply isn’t enough product.
It’s great to have so many views, and I tend to think that just because things haven’t happened yet doesn’t mean they won’t.
Trends and statistical probabilities can be pegged, but timing is tricky.
Regardless of what I heard and the opinions/reports/conversations I assimilated, the fact remains that I can’t shake the feeling that we are on the brink of substantial change.
The type of change(s) after which nothing will ever quite be the same… 2020 was an example of that.
I guess whether the change is painful or welcomed depends upon how we’ve positioned ourselves, and…
I don’t see how there won’t be some pain for everyone, regardless of how prepared or how well diversified.
Even if you deem the warning to be early or irrelevant, I believe it is long overdue to batten down the hatches, trim the fat, plug the financial leaks and prepare for all sorts of scenarios as the system unravels.
People were stylishly strutting down the streets of Manhattan’s Roaring 20’s one day and jumping off bridges the next.
Regarding asset protection, the most important thing is to protect the living flesh ‘real estate’ of your own body and the bodies of those you love and need to provide for.
I put together a Preparedness List and recorded a YouTube livestream for reference if you are new to this conversation.
Additionally, we need to think about starting businesses to generate extra income and/or take charge of our investment dollars so we can optimize outcomes for better cash flow and have exposure to appreciation should inflation get even more out of hand.
Notes secured by real estate for cash flow, hard assets for appreciation and the inevitable trend toward sound money as our fiat system collapses just as all others before it have.
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To grab the first half of this week’s Property & Paper Live, check out “Tidal Wave of Bad Debt?” on YouTube or Podcast.
To access the FULL replay, join the Citizens of the Realm community and click on the “Learning” tab.