This is just a quickie piece of advice to investors holding on to properties and interested in cashing them out.  The rule of thumb I am telling people is to “hold the line until 2009!”

I am hearing and seeing so many “investors” dump their property at the worst possible time.  Quite frankly, there are a couple of dogs we have that I would like to dump.  However, to do so now or next year is mostly a waste of time and energy.  I believe the strategy is to get tenants into your property (even if you have to reduce rents) and ride 2008 out.

Of course, there is an exception to every rule.  But I find it sad that so many “investors” don’t have the realization and willpower that selling property now (2007 and 2008) is mostly a waste of time and energy.  They will get out but it will cost them HUGE.  They will take a unbelieveable beating.

I have long preached to our local investor community to “get the money” when you don’t need it.  This is necessary to ride out the tough times.  I have believed that the availability of money would not always be plentiful.  And the economy looks like it is headed towards a downturn next year.  It looks like a lot of people (homeowners and investors alike) will have to learn some very tough life-lessons because of their own financial and economic ignorance.

Fortunately, I have studied history and economics and foresaw that something was going to give very soon.  I didn’t know exactly know when but the down cycle always comes.  During the “good times”, I left all the equity in our properties untouched and continue to raise credit and funds during the boom times in preparation for this downturn.  I feel good about our leverage position and once we get through 2008 and the first part of 2009, we should be sitting very well as I believe the recovery will begin then.

I predict things will get definitely get worse before it gets better.  The upside is that I am looking forward to finding some good deals and bring together an investment team to take advantage of it.  For the smart economic survivors who prepared themselves, remember, Hold the Line Til O-Nine!

There will be much more blood-letting on the economic streets next year in 2008.  Be ready for it and buckle up for the upcoming storm.

This entry was posted on Saturday, November 24th, 2007 at 12:35 am and is filed under Business Affairs, Real Estate Investing, U.S. Affairs. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.