How You Can Make Money When The Economy And Real Estate Crashes | The Economic Ninja

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Summary

➡ The Economic Ninja talks about how even if the economy crashes and the real estate market suffers, there are still ways to make money from buying homes. This is because during economic downturns, like the Great Depression, many people still needed places to live and turned to renting. Therefore, a strong rental market can emerge even in tough times. Additionally, the government often steps in with programs to help people, which can also support the real estate market.

Transcript

All right, I got a good question for you. If the real estate market takes a total tank because the economy crashes, how are we going to make money buying homes when nobody’s got work? It’s a great question. I say that because I get it a lot. And it’s always because people have views when change happens. Like everything’s going to be apocalyptic. Everything’s blowing up. It’s going to be the worst time ever. But it never is. We always come out of it. And one of the best ways to, you know, sort of help people understand this is by comparing the worst ever.

And that’s the Great Depression. The Great Depression was by far the worst ever turnover, rollover in our economy. 25% unemployment, meaning one out of four people didn’t have a job. Yet it’s a little known fact that it was the Great Depression that actually made more millionaires than any time before that. Because there were a handful of people, actually there were a lot of people, that were ready for it. And when I mean ready, I’m talking about people that actually had some cash on the side that weren’t over leveraged. And let’s talk about that leverage.

I found some interesting little websites devoted to the Great Depression. And it says here that it’s important to know that the Great Depression actually started, and it’s very true, a few years before the 1929 stock crash. You see, people expect a stock crash to be, or a real estate crash, to be the beginning of a total meltdown in the economy causing unemployment to skyrocket. That’s actually not true. See, as assets go up, like the stock market, or like the housing market, what happens is they start to slowly roll over because other factors are at play in the economy, especially as unemployment rises, right? So before the 1929 stock crash, what we saw was that other factors were at play.

Companies were so over leveraged. And it says here, in the years before 1929, as more and more credit was extended to businesses and individuals, the economy was tipping over the edge from available cash to way too much credit debt. Does that sound familiar? We are so over leveraged right now, it’s insane because our country has been exposed, especially since the pandemic, to an amazingly large amount of available cheap money or credit. Well, all that credit is due back with interest. And now that interest rates have risen, well, things are going to get nutty, right? What it says right here, when the amount of extended credit reached a critical mass and companies could no longer pay their credit bills, the companies crashed, which was the 29 debacle.

When workers lost their jobs, they could not pay their credit debts, and the housing market and banking industries crashed. Well, ironically, we’re in that spot right now, we’re in a place where companies cannot keep doing business as usual. And the reason why is because they are highly levered, their sales are falling, because their customers are caring more about taking care of, you know, covering ends meet, you know, buying food, paying the utility bills, things like that. We’re watching gas creep up again. And they’re losing customers. So what they’re doing is they’re laying people off.

So unemployment is starting to tick up. We’re in that moment where unemployment starting to rise, which actually the Fed actually wants to happen. That’s exactly what they want. Also, I’m going to put a link down to the pre sale course of the mortgage mortgage master course, because this is the time when you should be preparing for this, have all your ducks in a row, and being ready to go out and crush it. But see, in the during the Great Depression, even with unemployment at one in one in four people, people were still being fed.

They were still doing commerce, albeit at a much lower rate, lower pace. But there were people that were seizing the opportunity. Well, I get the question about the real estate all the time. How are we going to make money from real estate? When everybody’s broke? Well, just so you know, look at the Great Recession. Everyone that lost their job. They still needed a place to live. They didn’t just go show up homeless instantaneously. Some did. But the mass majority 95%, 98%, whatever was a people they lost their home, they went and rented.

So there’s gonna be an amazing rental pool. rents are going to stay strong. The government is going to react just like they did. But I believe in a deeper, bigger way, because this crash is going to be bigger. And they’re going to print money excessively causing a little mini hyperinflation. And what it’s going to do is they’re going to have programs where they help people with their rent and things like that. The people that lose their house, lose their jobs, and in doing so because the government’s going to come out with this amazing scheme, most people don’t realize, and it’s very akin to what happened during the shutdowns, they’re just going to offer you a sort of a way out.

Hey, you don’t have to make that credit card bill, you don’t have to pay the house payment, you’ll go into forbearance. So what that does is that drastically affects the ability of all those people to now get a new house, a new car, things like that affects your credit, right? But banks are still going to be lending. And if you’re ready for this, you’re going to absolutely dominate it. But that’s the thing. All throughout history, there’s been very little education when it comes to economic cycles, especially how they play out in the real estate market, which in my opinion is the best way to gain wealth in our nation because you can make money five different ways.

In real estate, every other investment, it’s pretty much buy low, sell high. So again, when we’re talking about how are you going to make money when everyone else is broke? Well, first off, you make your money the day you purchase real estate. Because if you bought it right, and you negotiated the proper price, the proper terms, you’re already buying that piece of property, not as a speculation. You’re buying it with a purpose, I’m going to sell it for x, because I’m going to do this, this, this, fix it up and flip it.

Or better yet, I’m only buying it for this price, because I already have a renter lined up. And that renter is going to pay me enough to pay all my bills, my expenses, plus a profit. That’s what people don’t understand. Because when a crash happens, they always think, Oh, it’s just like last time. No, it’s not. This one’s going to be a big one, which means it’s going to have bigger opportunities. So now we’re at the phase where if you’re not tracking what’s going on in the mortgage industry, because they’re already giving away those home loans with what 0% financing, they’re already doing, oh, they’re even doing these ghost seconds where you don’t have to pay, you buy now pay later, you don’t have to pay off the second until it’s already you sell the house, right? Zero interest, zero payments on your second.

And we’re already there. And so what I did is I put out I’ll put a QR code up on the screen. And I’ve put together two courses that is going to change your life. And I don’t say that lightly. And the reason why I say that is because it’s easy to say that I can save people by paying, you know, not paying erroneous fees and stuff like that, hundreds of thousands of dollars. But it’s another thing to teach people how to squeeze every dime out of your cash flowing properties based on how you structure it with mortgages.

Do you know how many people are actually out there and they can only afford to get hard money loans or their real estate investors? And they’re paying two, three, even four points. We’re talking tens of thousands of dollars that never comes back into their pocket ever, ever, ever again. They lose it forever because they simply don’t know how to take mortgage products that even the government backs and how to get them for themselves. And how many of those people don’t even know how to keep their social security number and their physical name, meaning their credit out of the entire mix.

I’m going to teach you that. I can guarantee you this. If in 14 days you don’t like what you see and it’s not going to change your life, I’ll give you your money back. And I want to have happy, successful students and I already do have a lot of them. And that’s what I want to do. That’s my pledge to you. Because if you’re ready with your credit set up, the debts in the proper amount, your debt to income ratio, DDI, HDI, all these different acronyms that the bankers talk about that a lot of people don’t understand.

And I’m going to tell you right now, there’s a lot of people that don’t even have the confidence that they’re ever going to own a home. This course will absolutely shatter that. And you will understand that within six months, you’re going to have banks lining up begging to give you money. That’s what I want to teach everyone. So this is for the first time owner, someone that just bought their first rental or somebody that wants to own 50 or 100 rentals. That’s where we’re taking this. This is the next evolution. Take a look at the QR code or I’ll put a link down below.

But trust me, there’s gonna be lots of money to be made if you’re ready. Alright, with that being said, the economic ninja is out. [tr:trw].

See more of The Economic Ninja on their Public Channel and the MPN The Economic Ninja channel.

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