Are you ready for the Perfect Storm?
It’s coming, actually it’s already here…
The perfect storm of declining stock prices, a busted real estate bubble, and deflating credit. It’s all coming together to form the biggest depression in the US since the 1930’s. But this depression is not just here in the US, it’s worldwide. And according to financial expert Harry S. Dent, it will hit all the major modern markets accept the Japanese market. Japan went through it’s own great depression 20 years ahead of the rest of the world.
It all has to do with population and demographics. Japan had it’s baby boom 20 years before the US and other modernized countries did. Their economy imploded in the 1990’s. Our economy and other major economies around the world are set to do the same in the 2010’s.
Now I am not a financial expert, far from it, I don’t know much about the economy or financial markets. That’s why I read and listen to the experts….not financial planners but the expert that financial advisers turn to when they are looking for advice. Harry S. Dent is one of these experts. He has correctly predicted trends in the market for the last 18 years.
Watch His latest video to see what he has to say about the economy and what is to come.
How Tax Lien Investing Can Help You Whether the Storm
Tax Lien Investing can be your haven in troubled times. Tax Lien are not tied to the market. When the stock market plummets, your liens still get the same rate that you bid at the tax sale. And in some states you get the maximum rate on your subsequent tax payments. Not too shabby! Especially when everyone else is loosing money in the stock market.
And what about if real estate prices fall another 50%, how will that effect your tax lien portfolio? What if the lien does not redeem and you foreclose on the property, will you loose money? Not if you did your due diligence and bought liens on good properties.
Let’s say you bought a $5000 on a property worth $150,000 and it drops it’s value 50% to $75,000 and the tax lien doesn’t redeem and you get to foreclose on the property. Will you loose money? I don’t think so. You’ll get a property for at most $21,000 (assuming that you pay the taxes over the next 3 years until you can forclose and pay up to $1000 in foreclosure costs). You can still sell it to a real estate investor at a discount for $50,000 and more than double your investment.
Now is the time to get out of the stock market, get out of traditional real estate investments before it’s too late and put your money in safe investments, including tax liens.
Happy and Prosperous Investing,
Joanne
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