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 We are in a recession. Maybe it will become a greater recession. We don’t know. But it is a time of credit contraction instead of credit expansion. A $5 shirt? A $10 pair of shorts? That is a sign of deflation. A few months ago, these same clothes may have had designer brands on them – Diesel or Polo Ralph Lauren, perhaps. Excess capacity was created by excess credit. That is what happens in an expansion. Manufacturers borrow to increase capacity, so they can sell more products to credit-addled consumers. Then the excess capacity dooms them. They put out too many goods and too many services. When demand falls along with incomes and housing, prices fall too. A couple of our readers share that their line of credit (LOC) has been revoked by their bank, because they have not used it for many years. If you are relying on your LOC as a contingency fund, be aware and be prepared. Ideally, the purpose of a LOC is to buy income producing properties that create positive passive income every month.
Recap to Apartment Investing
Further to the last issue, we are so passionate about apartment investing that we can’t help to share a few more jewels with you.
PHYSICAL ANALYSIS: In-suite conditions must be livable, clean and functional with a good efficient layout. Common areas, roof, mechanicals; security is key as everyone wants to be safe while they are sleeping.
FINANCIAL ANALYSIS: Check lease provisions. Ensure terms are properly enforced with background checks. Historical data should have three years of operating history; a major upturn just before being placed on the market should be a concern. Almost everyone lies about their utility costs, so ask for the utility bills.
TIMING VS LOCATION: If you buy the property right in the wrong location, you can still get hurt. The physical location will help us read the demographics.
TIMING VS VALUE: If you buy cheap enough, if the market tanks I will still be okay? Not really true. If the market takes a dive, you could have a serious challenge getting your project to fill.
The key is that if you are cashflowing in a property you don’t have to sell even if the market is down. Therefore, you have to buy right, at the right time, in the right location with the RIGHT TERMS.
 The Passing of a Legend
With the passing of Michael Jackson, the undisputed King of Pop Music, we are reminded of our extreme mortality. Tomorrow is only a hope; today is a gift, called the present. Why don’t we live life to the fullest with a purpose? Michael was truly living his purpose even when he was only 5 years old. Sadly, he passed away at 50 from a heart attack on June 25, 2009 in Los Angeles. Our prayers are with his family in this sad time, for them.
Let Us Help You Help Us
We have been actively looking for 20+ unit apartment buildings in Southern Ontario. If you have come across apartment owners who want to sell and you are not in the market to buy, please call us at 1-877-978-9788 or e-mail Daniel. We will reward you according to the size of the deal, that we close.
If you want to share any of your insights, market knowledge and your resources, we would always appreciate it.
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Master Your Invisible Power
We feel fortunate to have attended the world-famous seminar “The Millionaire Mind Intensive” by T. Harv Eker’s team. To master the inner game of wealth, you should read Harv’s book: Secrets of the Millionaire Mind.
  Each of us has a personal money and success blueprint already engrained in our subconscious mind. It is this blueprint that is running our financial life. Yet, we might not know how to reset it for success. Our comfort zone is in direct proportion to our income zone. We should have an active income as well as a passive stream of income: real estate, storage, Internet marketing, etc. Millionaires are good money managers. Yes, we are excited to start using an excellent and easy money management system. You can too!
There was one exercise that made some people in the audience and Julia cry. In the end, Julia was taught to let go of her pain from childhood experiences owing to her mother’s extreme dominating and abusive behaviors. People who have to be right are usually the most miserable. Research shows that 47% of all cancer is related to unresolved anger. The seminar trainer, Doug Nelson, says it best: “everyone does their best they can at times. We don’t necessarily forget, but we do necessarily forgive”.
If you are ready to experience a life-changing journey yourself, please call or e-mail us as we have received some free tickets from the event.
Managing Your Credit Score
A credit score is a number that lenders use to help them decide “if I give this person a loan or credit card, how likely is it that I’ll be paid back on time?” It essentially dictates your finances. Most of us don’t know this number until we apply for a loan. Julia has met a lady, who got declined for a mortgage because she had been paying everything in cash and had not established a credit history in her life.
FIND OUT WHERE YOU STAND: Request a copy of your report from the three major credit reporting agencies (CRAs): Equifax, TransUnion, Experian.
FIGURE OUT THE FACTS: One late payment on your Visa can stay on your report for up to seven years. If you find any discrepancies, you need to fill out a dispute form and send it back to the CRA by registered mail. Fortunately, the law states any item not being verified as accurate must be removed from your report.
CLEAN UP: Set up a plan to eliminate existing debts. Clearing up debt can take time. Remember that you have the right to add remarks to your file. Take the opportunity to defend yourself and point out the good areas of your report, such as highlighting a loan or a mortgage that was paid on schedule.
PROVE RELIABILITY: Taking out a loan that you don’t need and then paying it back in a short span of time can prove that you are a good credit risk.
TOO FEW OR TOO MANY: The ideal position is to have a few lines of credit, never more than you could afford to pay off on your income, and with none of them maxed out. Cancel old cards that you never use. Don’t ever max out one giant line of credit by putting your entire debt on it. This is akin to killing the goose that laid the golden egg.
“Holding on to anger and resentment is like drinking poison and expecting someone else to die.”
- Unknown
Daniel Lynes and Julia Lee Lynes |
