Quote:
Originally Posted by Tron_fdc
Not exactly. Whenever you see a massive crash, smart investors don't get caught up in the hype and see it as an opportunity. If it crashes, there's huuuuge opportunity to make some serious money.
Imagine of the price of housing dropped 50%.....I'd mortgage myself to the nuts, buy as much property as I could, and when the market corrected itself (which it invariably would) you could turn around and make massive gains. Imagine if you could have afforded 4 houses back in the 80's when it dropped during the NEP; if you still had those properties you would be a multi millionaire. Another scenario was 9/11. The US was on the brink of recession, and the terrorist attack was more or less the straw that broke the camels back. There was a price dip in real estate, and I know a number of people that leveraged themselves as far as they could, and are now multi millionaires.
There's a lot of money to be made when people panic.....
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Good plan but if you've lost your job [Which caused the market free fall], it's kind of tough to leverage your assets. I could have taken over mortgages for a dollar but finding renters to pay the price of the mortgage would be impossible. Some people formed numbered companies, bought these houses and rented them out at a discount until the bank repossessed .
Bottom line is if you have cash, a steady income, credit and assets or an angle, you can make money.