Just How Dumb Do Democrats Think Their Donors Are?
A Quick Bible Study, Vol. 141: The Inspiring Faith Chapter - Hebrews 11
The Biggest Townhall VIP Sale Ever
Railway Strike Threatens U.S. Consumers
With Newsom Not Running For President, Who Will Challenge Biden in 2024?
GOP Promises to Take Control of Biden's Reckless Spending ASAP
Unredacted Documents Reveal Fauci Tried to Shift the Narrative On the Covid-19 Lab...
Elon Musk Reveals If He Would Support Ron DeSantis In 2024
I Am Thankful Every Day
Can the Party of "No" Beat the Party of "Free?"
Another Leftist Smear Goes Down in Flames
Mike Lindell and Lee Zeldin Vow to Challenge Ronna McDaniel for RNC Chair
Private Documents Reveal Trudeau Was Going to Use Tanks to Stop Freedom Convoy...
Kari Lake Files First Lawsuit Over Midterm Election Results
Biden Threatens Second Amendment Once Again

This Recession Could Be Your Big Break

The opinions expressed by columnists are their own and do not necessarily represent the views of Townhall.com.

No doubt, recessions are scary. Just look at these Time Magazine headlines:

“Trying to Fight Back - Inflation, Recession, Oil;”  “Corporate Scandals;” “Mid-East Massacres;” “War on Terrorism;" “Sky-High Housing;” “Rescue the U.S. Dollar”

These breaking stories sure sound like they could have been printed last week, but in fact, they were written between 1974 and 1978.

Perhaps these Time Magazine articles are more recent:

“Wall Street Crisis;” “Social Security, What Can the Nation Afford?;' “The New Economy - Where will Jobs Be?;” “The Debt Bomb - Worldwide Peril of Go-Go Lending;” “That Monster Deficit - America’s Economic Black Hole;” “China’s New Face”

While these headlines certainly could be today’s news, they were actually taken from Time Magazine covers between the years of 1982 and 1984. Similar headlines posted in the early 90’s and again in the late 2010’s.

What does this tell us?  Based on history, the U.S. seems to face major recessions every decade. And so far, the U.S. has pulled itself out of what seemed to be end-all calamities.

Every time I mention that now is the time to build wealth by investing in cheap properties, I get an onslaught of hate-mail from people who claim I’m crazy. They are astounded that I’d suggest such a thing when real estate is at it’s worst.

I say to them, “Goodness, you have a short memory. In time, all this will pass but the property will still be there.”

It’s easy to blame the wealthy people of this country for “taking” from others. But perhaps, all some of them really did was make a move when everyone else was paralyzed with fear.

Use the pastor of my mom’s church in Chico, California as an example. In the early 80’s when the U.S. was facing another economic crisis, the pastor decided to buy properties in his hometown because they were so cheap. People called him crazy, but he took the risk because he knew he couldn’t support his family on his meager church salary.

Today, he owns 6 properties that he can lease for $1400 per month. It has been almost  30 years, so he nearly has the homes paid off. He never refinanced to take the cash out early.

He bought the homes for $85,000 and they are now worth $225,000, even during the 2007 housing crisis that brought home values down by 50% in many parts of California.

The pastor did not make a large salary when he bought the properties, but he did manage to save enough for the down payments, which were $17,000 each at the time. When he ran out of money, he borrowed from people who were looking for a good return on their money, secured to property.

The pastor doesn’t care whether home values go up or down because he doesn’t plan to sell. He lives off the rents that come in every month. Rents have gone up, so the recession has only helped increase his income.

You can call me crazy if you like because that means I’m in the same category as this pastor. He’s paid off his own home and now enjoys over $6000 per month in passive income from his rentals after all expenses are paid. This money is in addition to his pension, but who wants to rely on a pension these days?

We now have another crisis on hand that gives us another opportunity to buy low-cost, high-yield property. This is not just for the wealthy, but it is for those who desire wealth. Or you can sit and complain that the sky is falling and the world is coming to an end. Which will you choose?

Kathy Fettke is the CEO of www.RealWealthNetwork.com, a resource for new and experienced real estate investors, offering blogs, podcasts, and webinars to keep members updated on the ever-changing real estate market. Membership is free.

  See also these top stories:
John Ransom 82 Percent See Obama Policies "Somewhat," "Mainly" or "Solely" Responsible for Economy
Kathy Fettke This Recession Could Be Your Big Break
Mike Shedlock IMF Throws More Money at Greece
Bill Tatro You Cut Taxes, You Don't Raise Them
Cliff Ennico Finding 'Satisfaction' As an Entrepreneur: Meet Keith Richards
Zacks Investment Research e-Commerce Stock Outlook - June 2011 - Industry Outlook

Click the Townhall Finance blog The Ticker for daily commentary on money and markets.

Join John Ransom on Facebook and follow him @Twitter 

email: thfinance@mail.com

Join the conversation as a VIP Member


Trending on Townhall Video