Posted by Preston Letts
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I am sure many of you have seen the 2000 movie “The Perfect Storm,” starring George Clooney and Mark Wahlberg. The movie, in which Clooney and Wahlberg play a fishing boat captain and crew member, depicts a storm that their particular boat goes through. In the movie, the storm is portrayed as one of the worst storms ever off the coast of Massachusetts, where two large storms run into the jet stream to create The Perfect Storm.
Well, the reason I bring up this movie, and how this storm was created, is to portray the Perfect Storm that we are all currently living through. Now, you might ask what our current perfect storm is. Well, it is our current real estate market, and especially for those savvy investors out there who can see this opportunity.
You see, we are seeing a three-part cause-and-effect relationship, which is creating the ultimate perfect storm to be investing now in our real estate market.
No.1: Properties can be bought for absolutely incredible values. Many of the Chicago Income for Life members I work with are able to purchase properties at 30% to 40 % below value.
No. 2: Interest Rates are at 50-year lows. I was talking to an investor about the loan he is getting for an upcoming purchase, and the rate he was quoted was right around 6%. With interest rates this low, investor’s carrying costs have gone down by $100 to $200 a month per property.
No. 3: The demand in our rental market for nice single-family homes in nice areas, available on a Rent to Own program is skyrocketing. Because the restrictions to purchase property today are significantly stricter, many people are being closed out of home ownership and need an alternative to create ownership.
When we take the three factors into account, what is created is what we call today our modern “Perfect Storm.” Today as investors, we can buy properties at discounts we have never seen, we get interest rates that have not been around for 50 years, and the demand for the properties that we have is absolutely out of control.
The big question is, will you take advantage of the life altering investments, or will sit by idle and watch others begin to create their fortunes before your very eyes.
Preston Letts
Income for Life, Chicago
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