Markets do not go straight up or straight down! Our Forecast has predicted a “Window of Opportunity”. For those that have not taken advantage of low rates; the “Window” may be open now!
Although the coming months may be SCARY, if you feel you have not saved or invested enough, there may be another “Window of Opportunity”, that comes only every 18.5 years, coming very soon. It is time to ACT!
The long Interest Rate Cycle bottomed as projected in July 2016; 35 years of declining rates from mid-1981 to mid-2016. Rates will be rising for the next 33 years which will certainly change the dynamics of the Global Economy. Those that have low, long term fixed rate mortgages on properties will be at a distinct advantage in just a few years.
The Timing Model has predicted the current Real Estate Correction; my advice has been to raise Cash by selling Marginal properties. Although the Forecast predicts a time frame for Turmoil, it also forecasts an Opportunity to produce Fortunes for those aware and prepared to act. The Explosive Cycle will shortly begin; it will create Generational Wealth! However, my clients have been raising Capital for the last 18 months and are now flush with Cash to deploy. Those that have not heeded the advice, have a second opportunity; an opportunity to participate when the time is right. Two strategies may be considered.
Appraisal prices are based on past sales which are STILL high; refinancing properties now will not only capture long term rates at discounted pricing, but appraisals will allow greater flexibility for “Cash Out” refinance. This money is to be used ONLY for future investment purchases; this is NOT to be spent. Loan to value levels should certainly not exceed 70% and the investment MUST still provide a secure cash flow to service the debt and other investment costs as well as the most important: a net Income Stream for you! Not all properties will be suitable and the asset must not be placed at RISK! Capital harvested from the refinance needs to be placed in an extremely safe, secure, and SACRED account; this will be seed money to be deployed just prior to the Explosive Phase of the Real Estate Cycle.
Baby Boomers have a Unique bonus opportunity. Reverse Mortgages are becoming less expensive and more cash can be extracted from equity in personal residences. Consulting with friends, clients, and peers has a unanimous theme: not enough INCOME! This may be a game changer for many! Again, not every circumstance is the same, however, many have family homes with little or no mortgages. A Reverse Mortgage requires no qualification so no credit or employment is needed; just the property. The best feature of a Reverse Mortgage is NO MORE MORTGAGE PAYMENTS; this saves many $5-15,000 a year or more; the financial pressure can be reduced. Further, often there is additional cash left over after paying off the existing loan, sometimes lots of cash. Cash that can be INVESTED!
A second chance at success is coming! Although the coming months may be SCARY, if you feel you have not saved or invested enough, there may be another “Window of Opportunity”, that comes only every 18.5 years, coming very soon. It is time to ACT!