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From what I understand, when deflation hits it means the price of everything goes DOWN
That means rents go down too. Wages could go down.
So, if you have houses you’ve bought with financing of any kind and the rents go below the mortgage payment, then you could lose the house.
So, to prepare for deflation, or a potential depression ( which is widely predicted) you need to get your houses FREE and CLEAR as fast as possible.
You can do that two ways:
Sell 2 to pay off one.
do wholesale deals or highest bidder sales to generate a lot of cash to pay off houses
team up with a private lender who will take out your mortgages in exchange for 1/2 of the cashflow and/or equity
Even if rents go down, you can handle it if the houses are free and clear.
I’ve been reading a lot of articles about the economy from many different sources. I need to start posting them on the forum or THE DEPOT.
Hey Jackie,
I know its hard to predict the future. But i went back and listened to Jack’s state of the union address in 09. He said to get your name on as many deeds and options as possible for the future wave of inflation on the horizon. Do you think this will happen or is deflation on the scene? There is the shadow inventory which has not even hit the market yet. But from what i understand, the only way for the government to get us out of this mess is to inflate everything. Is it just a time to get in and get out with houses?
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