Sep

27

Bailout - If Only This Could Happen Instead!

Filed Under Real Estate Investing, foreclosure | 3 Comments

I’m against the $85,000,000,000.00 bailout of AIG.  In fact I am against ANY bailout at all but will admit that if you can’t beat them join ‘em and I will as a real estate investor find ways to profit from what I’m calling the “GREAT Socialistic Bailout.”

So to bring a point home let me share an alternative bailout program that makes more sense.


Original Author Unknown:

Instead, I’m in favor of giving $85,000,000,000 to America in a We Deserve It Dividend.

To make the math simple, let’s assume there are 200,000,000 bonafide U.S. Citizens 18+.

Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up..

So divide 200 million adults 18+  into $85 billion that equals $425,000.00.

My plan is to give $425,000 to every person 18+ as a We Deserve It Dividend.

Of course, it would NOT be tax free.  So let’s assume a tax rate of 30%.

Every individual 18+ has to pay $127,500.00 in taxes.  That sends $25,500,000,000 right back to Uncle Sam.

But it means that every adult 18+ has $297,500.00 in their pocket.  A husband and wife has $595,000.00.

What would you do with $297,500.00 to $595,000.00 in your family?

  • Pay off your mortgage - housing crisis solved.
  • Repay college loans - what a great boost to new grads
  • Put away money for college - it’ll be there
  • Save in a bank - create money to loan to entrepreneurs.
  • Buy a new car - create jobs
  • Invest in the market - capital drives growth
  • Pay for your parent’s medical insurance - health care improves
  • Enable Deadbeat Dads to come clean - or else

Remember this is for every adult U S Citizen 18+  including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces.

If we’re going to re-distribute wealth let’s really do it…instead of trickling out a puny $1000.00 ( “vote buy” ) economic incentive that is being proposed by one of our candidates for President.

If we’re going to do an $85 billion bailout, let’s bail out every adult U S Citizen 18+!

As for AIG - liquidate it.  Sell off its parts.  Let American General go back to being American General.  Sell off the real estate. Let the private sector bargain hunters cut it up and clean it up.

Here’s my rationale. We deserve it and AIG doesn’t.

Sure it’s a crazy idea that can “never work.”

But can you imagine the Coast-To-Coast Block Party!

How do you spell Economic Boom?

I trust my fellow adult Americans to know how to use the $85 Billion We Deserve It Dividend more than I do the geniuses at AIG or in Washington DC .

And remember, The “We Deserve It Dividend” plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.

Now Go Buy A House,

Gerald Romine

Note: I did not write the above article and the math error has been left intact.

Sep

22

How Banks Make Money & Why Real Estate Will Come Back Quickly

Filed Under Real Estate Investing | 2 Comments

Last week the Bush Administration proposed a $700 billion to $1 trillion rescue plan for the financial and real estate industry.  The heart of the plan is to purchase bad debt/loans from the lenders thereby relieving their bad loans so they can concentrate on making good loans (talk about a bailout funded by the taxpayer).

Personally it is appalling that the government is going to spend 1 trillion dollars of tax money to bail out the banks.  This is the equivalent of you or I running up $250,000 of credit card and short term debt and the government wiping the debt clean.   Sure… it is great for the bank but don’t forget the bill is being footed by you and I the taxpayer. Plus, pumping huge amounts of dollars into the economy is a devaluation of our currency giving us less buying power.

I’ve been a broken record that there has never been a housing crisis… just a money shortage that has been manufactured. Setting aside my personal opinion if we look at this from a purely selfish business standpoint as a real estate investor it can be a very good thing.

The Banks Make Money Making Loans.

If you don’t understand Fractional Reserve Banking you are handicapped in understanding the big picture - there is a good definition at http://en.wikipedia.org/wiki/Fractional-reserve_banking.

To summarize fractional reserve banking means the bank’s loan money without having any of their own money collateralizing the loans then the banks collect interest and fees money created out of thin air.  If you deposit $10,000 the bank is able to make a loan of $80,000 and the bank collect points, interest and fees on money that did not cost them anything.  Their investment is ZERO in the loan.  I know this might sound crazy… but look it up and research the subject.

The important thing to remember is banks are in the business of making loans.  With the tightening of money lending the strong banks are not only surviving but they are now getting government bailouts and when they start lending again in mass the surviving banks will have increased profits because of decreased competition.

The one trillion dollar bailout for the economy signals a green light for the banks to start lending.  The government is not only taking the banks bad debt off the books but the government has taken over Fannie Mae and Freddie Mac which currently buys approximately 90% of the loans on the open market.  The translation is we have a taxpayer bailout AND the taxpayer through Fannie Mae and Freddie Mac will be buying the majority of the new loans!

What To Do Right Now?

Realize that a speeding locomotive does not stop on a dime.  Foreclosures will continue to rise and be offset by buyers coming back into the markets.  With time the course of direction will be turned as buyers rush to the market and properties will regain their values quickly.

As a real estate investor stay close to the action.  Be on the lookout for real estate deals that can be bought for a fraction of their value, bought ’subject to’ and kept as profitable rentals, or for your own personal residence that can be bought at prices not seen in over a decade.  If you need to analyze deals or create any of the necessary paperwork check out The Ultimate Real Estate Investing System.

Author: Gerald Romine

Sep

9

No Arms, No Legs, No Worries - Nick Vujicic!

Filed Under Real Estate Investing | Leave a Comment

Today I received an email from Ralph Coslet who shared an inspirational story with me about Nick Vujicic - a giant of a man born without limbs. Ralph knows I love inspirational stories and this one is truly amazing.

Nick Vujicic on GeraldRomine.comRalph thought of me because Nick Vujicic said the following:

“I want to become financially independent by the age of 25, through real estate investments, to modify a car for me to drive and to be interviewed and share my story on the ‘Oprah Winfrey Show’! Writing several best-selling books has been one of my dreams and I hope to finish writing my first by the end of the year. It will be called ‘No Arms, No Legs, No Worries!’”

Here’s a video about Nick you might enjoy:



After watching the video I called Nick’s office to volunteer my real estate investing software and counseling to Nick Vujicic if he is sincerely interested in real estate investing. He’s was out at a speaking engagement so I was only able to leave a message with his executive assistant and we’ll have to see what happens.

No matter what, Nick Vujicic is an inspiration and I hope you enjoy his story as much as I did.

If you think you have obstacles in your life this really puts things in perspective.

Author: Gerald Romine

Sep

9

Are You Prepared For Successful Real Estate Investing?

Filed Under Real Estate Investing | Leave a Comment

Last night I played coed softball and we were beaten badly.  The coed league is a lower level league and the emphasis is on fun and having a good time which certainly was true for me.I’m naturally competitive and when I take an objective look at the team the reason we lost is clear.  Almost every player on the team is out of shape and not prepared to play.  I mean no disrespect to the other players but looking at their physical condition the problem is evident. They are out of shape and their performance is a direct reflection.  At 38 I’m one of the older players and in the best condition of anyone on our team.  Because I am physically prepared to play I’m able to excel.

Some people might see that as a harsh or egotistical statement but it is simply a statement of fact.  Those who are prepared thoroughly do better than those who are not.

The same holds true for real estate investing.  Those that are prepared with knowledge and systems will excel as a real estate investor while others fail. The question becomes how prepared are you for investing in real estate?

If you are unprepared and buy houses without having an understanding of the market, conditions, and sound investing principles it only makes sense that your success is based more on chance than making a sound investing decision. You’re failure is expected!

This is critically important in today’s real estate investing world.  If you look at the investors that are making money you will see that they have a system in place and are doing the same successful things over and over.

Why.

Because in real estate investing the math is critical. If you are buying a rental property what is your return on investment? If you are flipping properties what are your buy and sell ratios? In other words what are wholesale buyers paying for a property and if something goes wrong are you certain you can move the property for less and still make a profit?

My ULTIMATE Real Estate Investing System will go a long way in helping you become a great investor that makes sound financial investments. It will analyze your deals, prepare all of the paperwork, and open you up to a world where real estate investing is easy and systematic.

If you are serious about investing be sure you have and use this system.
www.kickassrealestatesoftware.com

Author: Gerald Romine