Rising Rents plus Dropping Interest Rates Mean Investors WIN!

Rising Rents plus Dropping Interest Rates Mean Investors WIN!   Its easy to see that FannieMae Mortgage Bond market prices are climbing. As bond prices rise, mortgage rates drop. This results in bond investors earning less. It also means lower mortgage rates for borrowers.  Yesterday’s wild market action was confirmed today;
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Real-world inflation (the kind normally hidden by government in mainstream reports)

Real-world inflation (the kind normally hidden by government in mainstream reports) is already climbing as the costs of food, gas, rents, and other everyday living expenses visibly rise… as rents rise they increase income to the landlords, and as costs of mortgage interest drops the net profits to landlords also increases. This means the value of rental property ownership is climbing, while the face costs of most real estate is still flat or dropping.

All of this EVENTUALLY translates to an increase in ALL real estate prices itself (even if property prices currently appear to be flat or still softening.)

Rental Real Estate Is Essentially Free

When you add all the current and future income increases available from rental real estate, and subtract the low cost of “other people’s money” (mortgage leverage,) I think its safe & fair to say that strategically owned real estate is essentially free at this point in the game. The current and future revenues, even before considering potential appreciation, are greater than the long-term costs. This is likely to go further in favor of ownership in the near future as well. Rising rental income allows an owner to simply “sit and wait” for the eventual and inevitable return of asset price increase.

To add further to the opportunities for the buyer/owner of income real estate… the low returns to the mortgage bond investors is also happening to *ALL* the safe investment markets. This results in many private individuals holding huge accumulations of money getting very low returns. These investors become frustrated that they cannot find a place to invest that gives them an equivalently safe return with a sense of security and control. The rental investor’s opportunity arises by DIRECTLY offering loans to these private individuals at terms and interest rates beneficial to both, but especially favorable to the investor of the income property.

With rents now universally recognized as starting a relentless upwards trend, there is an abundance of long-term home-run opportunities in the markets for directly-owned income real estate.

Update Your Real Estate Investor Education

If whatever you’re currently doing isn’t paying off to your satisfaction, NOW might be time to get up to speed in old school “roll up the sleeves” hands’ on real estate investing.

ONE source of excellent coaching and education for real estate investors is Greg Pinneo, of Reach Returns.  I’ve met Greg, I have thoroughly reviewed and studied his methods and content, and I heartily endorse his offerings.

Finding The Money To Invest

We find money you’re losing to Wall Street & the IRS by accident or inefficiency (kind of like the “Occupy” movement… but for responsible adults that own homes, and jobs, and families.) We often recover money equal to 3-15% of gross annual income… sometimes more.  Once we’ve recovered and stopped your Wall Street and IRS losses, we can show you how to safely put them back to work WITHOUT the previous risks and exposures.  You can also engage them in high-opportunity investment real estate.  Our fees are on a sliding-scale, but we sometimes offer free reviews.  Is that something you want? Click to us now!

Luck all!
David Donhoff, Advisor
David@LeveragePlanners.com
425-223-4520 Desk
425-652-1001 Cell
206-338-5856 Secure Fax

Leverage Planners
www.LeveragePlanners.com
No Bull Financial, LLC
www.NoBullFinancial.com

413 14th Ave West
Kirkland, WA 98033