Segment 1: Seasonal Investing in 2021 SEGMENT BEGINS AT 00:44 Economist and trading coach Jerry Robinson examines the current economic environment in light of an approaching annual stock market strategy used by many investors. Will this year be different? Moral...
by Jerry Robinson | FTMDaily Editor-in-Chief
HOUSTON, June 22
Making Money in Real Estate in 2011
Cash buyers are saving the real estate market.
According to the National Association of Realtors, all-cash buyers accounted for 30% of existing home sales last month. That's up from 25% in May 2010, and 12% two years ago. If you go back to March of this year, cash buyers made up an astounding 35% of all existing home sales.
In some cities, the numbers of all-cash buyers is simply mind-blowing.
In the Miami-Ft. Lauderdale area, for example, 63% of buyers paid in cash during the first quarter of 2011. That's up from 39% in 1997's first quarter.
In Las Vegas, where home prices are 60% below their 2006 peak, 49% of first quarter sales were made to cash buyers. That number is up dramatically from 20% in the first quarter of 1997.
Right now is a great time to have cash. And right now is a great time to be looking at real estate in many areas of the country.
Increasing residential rental rates, coupled with declining home prices in many areas of the country, are an irresistible combination to many investors today who have cash on the "sidelines."
And who can blame them. According to recent data, U.S. home prices are 33% below their peak in 2006.
The creative strategies that real estate investors are using to buy, sell, and rent homes in our current environment are too numerous to detail here. However, in our upcoming e-book on creating multiple streams of income, I will go into detail about the various strategies used to create income with real estate.
An update on our Multiple Streams of Income e-Book
Over the last several weeks, I have been working feverishly on our upcoming e-book on creating multiple streams of income. While I don't have a publication date firmed up yet, I can tell you that we are still several weeks away from the book being completed. But, believe me, this e-book is going to be worth the wait. Our team is pouring a massive amount of our expertise into this book.
The e-book is going to contain the basics of 16 income streams that you can create now and for retirement. I am very excited about getting this information into your hands.
As promised, I will keep you posted on our progress and those of you who have signed up for our special discount will be alerted as soon as the book is nearing completion so that you can pre-order it (If you have not already signed up for the discount, click here to learn more).
Here at FTMDaily.com, we are working hard to create solutions for you during these difficult times of economic crisis. We invite your feedback and comments on how we may serve you better. Feel free to contact me directly at firstname.lastname@example.org.
In The News Today…
1. MARKET WATCH: U.S. stocks turned mixed Wednesday after the Federal Reserve said it would keep the nation's federal funds rate at a historic low of between 0% and 0.25%.
2. FED WATCH: The Federal Reserve acknowledged Wednesday that the economy is growing more slowly than it expected. But it said it will complete its $600 billion Treasury bond buying program by June 30 and announced no further efforts to boost the economy. The Fed noted that inflation has risen. But it said it expects those pressures to be temporary as well. Pacific Investment Management Co.’s Bill Gross, manager of the world’s biggest bond fund, said in a Twitter posting that the Federal Reserve may hint in August of plans for additional monetary stimulus. “Next Jackson Hole in August will likely hint at QE3/interest rate caps,” he wrote referring to the Fed’s annual symposium in Jackson Hole, Wyoming, in a 10:24 a.m. message.
3. U.S. DEBT WATCH: Increasing federal debt will be a growing burden on government action, crowding out lawmakers’ ability to adopt tax and spending priorities in good times and reducing flexibility during recessions, all while making a fiscal crisis more likely and hindering long-term growth, the nonpartisan Congressional Budget Office said Wednesday.
4. GOING POSTAL: The financially troubled Postal Service is suspending its employer contribution to the Federal Employee Retirement System. The agency said Wednesday it is acting to conserve cash as it continues to lose money. It was $8 billion in the red last year because of the combined effects of the recession and the switch of much mail business to the Internet. It faces the possibility of running short of money by the end of this fiscal year in September.
5. OBAMA BLUES: Two years after the official start of the recovery, the American people remain pessimistic about their current economic circumstances and longer-term prospects. Fewer than a quarter of people see signs of improvement in the economy, and two-thirds say they believe the country is on the wrong track overall, according to a Bloomberg National Poll conducted June 17-20.
Jerry Robinson – FTMDaily.com
Jerry Robinson is an economist, published author, columnist, international conference speaker, and the editor of the financial website, FTMDaily.com. In addition, Robinson hosts a weekly radio program entitled Follow the Money Weekly, an hour long radio show dedicated to deciphering the week's economic news.