I wanted to take a moment and explore something I learned from the thread named above. Tony said some very important things (to me personally).
Number 1:
The feeling of scarcity becomes overbearing to me because I am so much a believer in abundance and opportunity during all economic conditions.
I personally know this feeling…I was not able to express it because I HAD NEVER FELT THIS BEFORE!! I had nothing to compare it to except maybe setting an alarm, getting up early, shower, shave, dress (Billabong, of course lol), fix breakfast, pack a lunch and watch reruns of Law and Order for 12 hours. I see opportunities everywhere…2006 triples on the lake selling for 340K UNDER current appraisal!!! I see friends 3, 6 9 months behind on payments with no way out! I see a near empty sales lot with toters, set up trucks, crews all idle. Like Tony I am an eternal optimist. I went from 616 reportable to 19K reportable in 39 months. Shellshocked is another pretty good description. It is a totally alien landscape out there…surreal is another appropriate adjective.
Number2:
I am tired of worrying so much about keeping what I have. Our niche previously focused on doing more business in an abundant environment. It did not sit still worrying. I am confident that these changing times will see great minds here and elsewhere in this niche define themselves with new ideas and adaptation of old to overcome these challenges.
Amen my Brother. Until I find a way to connect the dots personally, I refuse togive ANY advice in this environment. I believe some great people from this community are the same. Lonnie, Steve Case are prime examples. These are people I know and respect and are two of three people on the entire planet I would give an unlimited POA to without a second thought.
I have received several dozen emails from people who have failed and failed badly. I am asking now to any who emailed me to re-email and allow me to post these missives anonymously for us all to learn from.
I truly believe that there is the brain power on this site to make win/win deals even now…I need your help people…I’m all in, are you?
If this post is inappropriate for this forum or offends anyone email me and I will delete it without question. These are srictly my thoughts and not of anyone else associated with MHU.
As Warren Buffet once said " The Tide Is Out and A Lot Of People Got Caught Skinny Dipping and It Is Not A Very Pretty Sight"
Bernd also said the experiment didnt work. The free money that all of us had access to via credit lines and whatever is now gone and costing us all severely.
I too am a believer of abundance for all. The world is a better place with abundance and prosperity for all. The greed formula took us down, but I am sure a better formula is being created as we write for those that want to pursue. Not all will pursue. I will always pursue. What else am I going to do curl up and die. No way. Failure is not an option just a lesson. The ride of life is awesome.
In April last year Bernd posted about the coming economic collapse (Crash Course) and I just want to thank him for doing that as it made me begin at that time to position myself for the “new world.” We felt we needed to get out of all debt as soon as we could from what we read and learned. We were able to get a loan on a rental house that we don’t care if we lose in order to pay off all loans on the mobile home park that is our bread and butter. Using the debt reduction calculator has also been a big help; Debt Reduction Calculator | Debt Snowball Calculator
in the am and look at a 171 space Park with 77empties in it. Rather than try to discuss ways to sell the current Owners homes, I am going to try and get them to assign the Park to me for one year. They are past the time their bridge loan was good for by 7 months and they can not find financing at any rate, They are one month behind on a month by month basis on bridge loan.
They had 60+ homes repoed out of the Park in the past 4years and never had a chance to infill (or money). They want out and I want another free Park.
What are they going to tell me? No? I’ve heard that a lot lately…I truly don’t mind…this Park was bid on by one of the HUGE REITs in early 2005 when it was almost full. I figure in 6 months it will be REO (maybe less). The bridge loan institution doesn’t want the property…the Owners don’t want the property…I WANT THE PROPERTY!
They bought this Park for 4.2M or so. I will buy it for any amount if the existing Note holder will modify the current loan so it shows amazing positive cash flow from day one and doesn’t cost me one dime. I am thinking of asking for a signing bonus for taking off their hands, I love this Park…I’ve bought and taken 30 repoes out of it over the years and it is very near some major attractions.
I think that the investors psyche has been altered. Risk/reward or Fear/Greed is the factor in decision making. The risk or fear side is showing itself plainly right now, but the reward or greed side is very unclear. The effects of government interference in markets have turned former assets into liabilities, and government actions taken during these past few years have really called into question the rule of contract law; it doesn
I have two loans with a small local bank coming due in two months. (Barney Zick said, “Balloons are for clowns.” I have to agree. What was I thinking??) I’ve got a meeting with the commercial loan officer who worked with me to obtain them several years ago. I’m going to see what the bank’s “appetite” for renewing them might be.
My financial circumstances have not changed appreciably, the property value has not declined much and I’m not upside down. I’m probably at a 72% LTV. I continue to pay all my bills like clockwork, including these loans. I do not have the cash to pay them off were they to be called.
The bank has every reason to renew the loans and keep working with me, from my perspective. One is a personal LOC and the other is a loan secured by a rental house.
I’ve heard through the grapevine that this bank and others are not renewing or modifying anything. They recently took back a house from an investor friend who asked to extend the balloon and they refused. The home was foreclosed on and was later sold as an REO for 1/3 of balance of the note. My property will probably do about the same thing for them.
I’ll let you know what the results of my meeting are. We’re all in for an interesting ride, I think.