Facts of Which Real Estate Investors Should Be Aware

These are no big deal in and of themselves, well kinda sorta, but as they combine their efforts things can and will get ‘interesting’. These are all macro in nature. I’ll be short, simple, and to the point, at my brain developed a blister today — short and simple are pretty much what I have to give today.

Count me in the camp thinking coming attractions include a fairly unhealthy dose of inflation. That said, it’s fairly difficult to ramp up inflation when unemployment is hovering in the double digit range. No jobs mean very little spending — the demand side of the equation is light. When you see employment come back, get ready.

It’s my opinion we’re gonna see banks, especially the mega players, profit their way out of their current straits. As I’ve said to so many lately — “Even a banker can make a profit when borrowing at 0% interest.” They’ve been doing this, and their profits, not to mention their general market value have both risen significantly. Don’t wanna bang too much on the obvious drum here, but this is a good trend.

Exactly because inflation won’t be making itself known imminently, and there’s not current signs of unemployment relief in sight, Fed Chairman Bernanke will not be able to raise the Treasury ‘Window’ rate of 0% interest for awhile. This will have a positive double barreled effect from where I’m sitting. Tom Vanderwell agrees with me on this, and has some compelling evidence. Actually, I shoulda said I agree with Tom. Here’s another post on topic, concerning Bernanke’s possible ‘exit strategy’.

1. It’ll keep the banks at the historically high 4 point spread they’ve been enjoying, which keeps the aforementioned profits hummin’ right along. Again, a good thing.

2. Bernanke’s inability to raise rates will keep our current real estate rates, at least more or less, where they are, or close enough for horseshoes. Hence, the 12-18 month window.

Anywho, mull this factoids over, and bring your own thoughts to the table. Real estate investors who know history, realize this is a time ripe with opportunity.

Call me, write me, email me, but let’s talk. Cell is 619 889-7100. Have a good one.

Related posts:

1. What Do You Think? Real Estate Investors — Speak Up
2. Real Estate Investors — Are You In ‘Wait ‘n See’ Mode? Breaking News: Time Ain’t Your Friend
3. 10 Ways Real Estate Investors Can Ensure An Abundant Retirement
4. Some End Of The Year Thoughts For Current and Future Real Estate Investors
5. OK All You Wannabe Real Estate Investors — This One’s For You