You can probably tell by the picture that I don't have high hopes for this year's economic forecast.
I think I mentioned it before but I predict that 2021 will be the year of the bankruptcy. Not only have a ton of CEOs from various well-known Fortune 500 companies have resigned from their positions but most are posting staggering losses due to being closed or partially closed during 2020.
Recently I took my daughter to the mall and noticed that quite a few stores closed down. The Gap and Banana Republic were emptying their stores out as we walked through. It was kind of depressing seeing so many empty stores and I couldn't help but to think about what was happening throughout the U.S.
This is just the tip of the iceberg on what we have to expect as the year rolls on.
First of all, for those of you who don't have a clue as to how real estate works, let me give you a crash course on what happens when you cannot pay your rent or mortgage (due to an economic crunch like what we're experiencing now).
If you're at the bottom -- paying rent to a landlord -- and you're suddenly not paying rent, the landlord may or may not be able to maintain their mortgage payments depending on how many of their other tenants are (or aren't) paying.
Not all landlords are fat cat multi-billionaires; most are just mom-and-pop landlords who don't have the financial stability to make up for lost rent payments by continuing to pay a mortgage with no money in the bank. And, unfortunately, some of these property owners paid top dollar at market peaks, putting them squarely underwater on their properties.
While there is still an eviction and foreclosure moratorium in place, how long do you think that's going to last? Forever? If that's what you're thinking, think again. That's just not how the real world works.
Some people actually think a mortgage works like a car payment where, if you miss a few payments, the lender can simply throw those payments onto the back of the loan. I laugh when I hear that because that is not how mortgages work. Missing payments cannot simply be thrown onto the back of a loan.
So...once the foreclosure/eviction moratorium ends, this is what will happen:
1) All property owners will have no choice but to quickly evict all dead-beat tenants as soon as humanly possible in a grand last-ditch effort to save their properties.
2) These property owners who are behind on mortgage payments will either have to (a) refinance to get a new loan for their property (probably at a higher interest rate), or (b) the bank will foreclose.
What does this mean in the scheme of things?
It means that we're in for a replay of 2008. Remember 2008? If not, look it up. It wasn't pretty.
The good news is that if you have cash for foreclosure deals, you'll be able to pick up smaller investment properties (the ones the multi-millionaires and billionaires don't want) for pennies on the dollar.
The bad news is that you'll need cash to pull this off. You won't be able to get instant funding to pull off these property purchases.
And I have a way for you get make that cash.
CLICK HERE to watch a short 5-minute video on how you can gain massive financial traction by raising money with a simple easy-to-do home-based business that can get you all the cash you want so...
...when that foreclosure windfall hits, you'll be able to pull out that wad of cash from your pocket and buy any of these income properties for a song because you'll have the money to do it while everybody else is dead broke.
CLICK HERE to find out my incredible plan for helping you become financially independent during this hardcore economic depression coming up.
See you at the top!