The New Economy

I was a great believer in building wealth through the financial markets. I studied Economics in school, and always found the markets intriguing. They seemed, for many years, to be the best option to build wealth and achieve financial freedom for the average American. While I still believe investing for long term growth can be include a portion of equity and debt instruments, my sentiments have changed somewhat in light of the recent meltdown in those same markets worldwide. Shortly after emerging from college, the word “derivative” was something no wise investor would have had as part of their portfolio. Derivative instruments are, in large measure, to blame for the mortgage mess, the failure of huge financial firms, and the trillion dollar bailouts of the last few years. Even now, many of the large market-makers in our economy have huge derivative allocations in their portfolios.

My grandfather, and his generation, believed that hard, tangible assets were the only safe place to park your investment dollars. He never had a “portfolio” nor a 401(k). He bought land and rental houses, and he put his savings in interest bearing, insured accounts. His ideas about wealth building used to amuse me, and in my mind I thought “how naive.” Now, I must admit he may have been right all along. It’s true that some have become fabulously wealthy by increasing the risk associated with investing and no small amount of luck. It’s also true that the old philosophy of putting money into hard assets is slower, less glamorous, and takes discipline. Maybe that’s why it fell out of favor in our now, now, now society. It is definitely true that many, many people are living very comfortable secure lives well into their golden years because they worked, saved, and placed their trust in real property. I believe I will start, however late to the table, to do likewise.

If you have been thinking about these topics like me, and have thought maybe it’s time to begin acquiring real, tangible assets, let’s have a talk. Did you you know there is a glut of homes for sale in Artesia under $100K? It’s the slowest segment of the Real Estate market here. In my office, we have talked and talked about why this is the case, and so far we can’t put our finger on the reason or reasons. No matter the cause, or reason, you can benefit. There are excellent opportunities to invest in rental properties, foreclosures, and great flip candidates. They are under-priced and most of the sellers are motivated. Call me and I’ll get a list together for you.

I’m going to start investing in what I can see and feel. I want to leave something tangible for my children and grandchildren. It hurts to admit I was the naive and wrong thinker all these years and that my grandfather’s generation had it right all along, but I must be honest with myself, and with you. It’s a new world, but old truths are right – now more than ever.

Real Estate is not just what I do for a living, it’s where I’m putting my trust for the future. I believe our future is bright, and I want to be a part of making that happen. Call me. It’s time to get started.

All Real Estate

All The Time

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