Inflation means the increase in the supply of fiat currency caused by the central bank printing (counterfeiting) currency to buy bonds, thus reducing the yield (effective interest rate) and increasing the bond price. Reducing interest rates reduces the Capitalization Rates for assets that are financed by debt, mainly commercial income property. Reducing the CAP rate […]
There is a world of difference between the “fractional reserve system” (FRS) and the “central banking system” (CBS). FRS merely spreads out the money deposits in the form of loans, and the total sum of deposits plus debt never changes. FRS is a kind of “leverage” on the deposit of money that strongly depends on […]
I just published my next eBook, “Millions in Nothing Down Real Estate“. This book is a very simplified version of my “How to Pyramid Your Equity to Create Wealth and Financial Freedom” (click here). My latest eBook focuses on generating wealth through passive income by buying income properties with Nothing Down (no cash out of your […]
Well, I’ve finally come to it. My costs are increasing for maintaining this website, adding features to my products, writing free articles and posting free YouTube videos. The time has come to add a PayPal Donate button. I hoped it wouldn’t come to this, but times change. By the way, it’s not a donation, because it’s […]
Bitcoin (BTC) has been hacked several times, mostly for “proof of concept” and not for nefarious intent. The algorithms for creating new BTC are now so difficult to compute that most BTC farmers are out of that business. The processing power to break the global BTC ciphering ledger is well within the reach of organized […]
I added new sections in my course “How to Pyramid Your Equity to Create Wealth and Financial Freedom” (at http://bit.ly/pyecw-1) that explain how to wholesale Bulk REO and Non-Performing Notes. You can watch a tutorial video at YouTube by clicking here. If you are having trouble wholesaling one property at a time, then how about […]
I just heard yet another “personal finance expert” offering some stupid advice on Social Security benefits. Social Security benefits generally become entitled at age 62. If the beneficiary defers receiving benefits for a few years, then higher monthly benefits are entitled. The so-called expert recommended NOT to elect to receive benefits at age 62, and […]
2014 Q1 is almost over. The lamestream media says everything is rosy (yeah, right). The problem with a cliff, even a demographic cliff, is that it is such a sharp drop-off that most folks can’t see the cliff until they are teetering the brink, especially when they are moving fast and thinking about something else. […]
Booms and busts always happen. You can’t defy the Law of Gravity. What goes up must come down. Today, the real estate market is a Sellers’ Market in most areas. Most average folks view real estate investing as speculating in price appreciation. The real objective of real estate investing is passive positive cash flow. The […]
Housing prices will collapse with a nominal increase in interest rates. Get your financial calculator: N=360 (30 years), Rate=4% per year, PV=100,000, PMT=477.52, FV=0. Those are the numbers for a $100,000 mortgage debt at 4% per year, fully amortizing over 30 years. Change the interest to Rate=6% and recalculate PV=79,628.87. That’s 20.4% decline for the […]