Is it me or has Congress, The Fed, and the Treasury been running around for the past couple of months playing whac-a-mole with the banking and financial system?
Bailout this company, help this one merge, let this one fall, pass a worthless $150b stimulus plan with rebate checks (that everybody except Congress knew would be a waste of tax payer money), pass a $700b bailout plan, propose another $150b bailout for cities, and then some weird economic stimulus and recovery plan for $56b in September. How are all of those things working out for you and the economy?
The problem facing our economy is a housing supply problem. There is too much supply. Congress has not ONCE addressed how to stimulate demand for housing in an effort to absorb this excess supply.
This excess supply is causing downward pressure on home values resulting in a loss of equity, decreased consumer spending, foreclosures, job losses and ultimately is spilling over into Wall St. and the financial and banking system as we are seeing.
Housing is the engine of the US economy. And right now the housing market is stalled.
Until Congress can jump start the housing market, and stimulate aggressive demand for real estate to absorb the excess supply, the economy will continue to contract.
My proposal is to reform the Tax Reform Act of 1986 and provide a real tax incentive for people to invest in real estate.
Here is the link to this proposal: www.HousingStimulusPlan.org
I have always believed that the person with the most options wins.
Maybe that sounds overly simplistic, but if somebody only has one choice as to where to invest their money and somebody else has two options - who do you think is going to make the more profitable investments?
A lot of people don't realize that it is possible to invest their IRA or 401K in real estate. And a lot of people don't realzie this because traditional money managers won't tell them and don't give them this option.
I am not going to tell people what to do with their money and where to invest it and when. But I am going to set the table for them, give them options, provide them with the information, and let them decide.
I am going to be doing a free teleseminar on using your IRA and or 401K to invest in real estate on Tuesday, October 14th. Here is the link to register: http://www.realestateplanning.biz/teleseminarira.html
I will reveal how to get instant returns of 6-10% regardless of appreciation.
How your IRA can get a loan and put leverage to work for you.
And why all real estate is local and how you can identify local market conditions and decide where to invest in IRA.
This teleseminar and information is one of those opportunites that you will regret it if you don't at least look into it.
The person with the most options wins.
For the record, I am a Republican. This is not a partisan post, but rather an example of how out of touch the President is with the issues facing our economy.
In his speech today the President acknowledged that the issue with the housing market is that the supply of homes exceeds the demand:
"The supply of homes now exceeds demand. And as a result, home values have declined. Once supply and demand balance out, our housing market will be able to recover - and that will help our broader economy begin to grow."
Congratulations, you recognize the problem.
The next step is providing leadership and revealing a plan to actually stimulate demand in order to absorb the excess inventory.
The President assumes that the supply and demand for housing will magically balance out over time with no repercussions to the great economy.
This has been his plan for the better part of two years and the plan is not only not working as housing inventory is near an all time high, but the economy is suffering as a result.
By this logic, after Katrina hit, the government should simply just patch the levies that had been breached, but not pump the water out of the city. Just wait for the water to evaporate.
This is what he is doing with the housing market. Just waiting for the inventory to magically evaporate. All the well knowing that mortgage rates are already near all time lows, home ownership is near all time highs, and loan underwriting is as tight as it has been in decades.
The way you absorb the excess inventory is by providing a tax incentive for individuals to invest in real estate. And fortunately, there is a road map for this type of legislation. It is found in the Tax Reform Act of 1986.
Go to www.HousingStimulusPlan.org for more details.
The past two weeks has had a lot of people rethinking their investments.
What they thought was safe, isn't.
And what they thought was risky, may not be.
You may have already heard about the lost decade for the Dow Jones. Or how it took over 20 years for the market to rebound from the highs prior to the great depression. This is all true.
Yet amongst all of the turmoil we are seeing in the economy and the markets, one investment is still reliable and predictable.
It is an income property.
Not an investment property, like the kind that is held exclusively for appreciation potential.
But an income property that is held for its intrinsic value of generating income for the owner.
No matter what happens to the stock market or the economy, people are still going to need a place to sleep. Americans are not going to be living in the streets. And in 30 years, if the property never appreciates, at a minimum, you will own a property free and clear that will pay you hundreds of dollars each and every month that you own it.
Real estate doesn't go out of business,
It doesn't file for bankruptcy.
And it won't get bought out by B of A.
So Congress passed the economic intervention/bailout bill this afternoon.
It is a start, but we have a long ways to go before the economy begins to turn around.
This bill will hopefully prevent an economic catastrophe, but we still need to address the supply and demand imbalance within the real estate market.
The housing market is the engine for the US economy.
Until this engine can get jump started and have the excess inventory abosrbed, the US economy will continue to contract.
President of Mark MacKenzie Real Estate Planning, a real estate research and investment services brokerage; author of "It's The Housing Market, Stupid!"
He's been featured as an "Innovator" by the Phoenix Business Journal and a "life-time advisor" by REALTOR Magazine.
Mark MacKenzie has contributed to articles in the Wall Street Journal, the Arizona Republic, national REALTOR Magazine, and he has a regular feature in Personal Real Estate Investor Magazine which is available in Borders & Barnes & Noble bookstores throughout the country.
Mark MacKenzie Real Estate Planning is a real estate research and investment services brokerage. They track local supply and demand trends for over 75 markets throughout the country.
Mark has written and published three books, "It's The Housing Market, Stupid!", "Marketopoly", which debuted on Amazon.com as the #1 real estate and investment book, as well as "The New Gold Rush - Real Estate".
It's The Housing Market, Stupid! is the name of Mark's latest book and economic policy that would stimulate investment demand for real estate and subsequently provide a back-stop to declining home values, foreclosures, and economic conditions.
The fiscal stimulus has its origins in the Tax Reform Act of 1986 as well as the Gulf Opportunity Zone Act of 2005. The policy would allow for more Americans to be eligible to receive greater tax benefits when investing in real estate. The result would be an increase demand for real estate, the excess supply of homes would be absorbed, Americans would receive a tax cut, and banks would be provided with a good source of new loans and income.
"Clearly demonstrates the author's thorough understanding of how tax law and legislation impacts the housing market. Little changes can make a huge difference and that's the very valid premise of this book. I think everyone who has ever considered themselves a real estate investor, or thought about being one should read this very important book."
Diane Kennedy CPA, Bestselling Author - Loopholes of the Rich
"What we need is incentive in the form of new found confidence in free enterprise and capitalism, not another bailout. Mark MacKenzie expertly illustrates the way out of the real estate depression is through renewed interest in investing in the most stable commodity since the 1930's - real estate."
Real Estate "Artist" Frank McKinney
5-time bestselling author, including Burst This! Frank McKinney's Bubble-Proof Real Estate Strategies and The Tap
"Refreshingly grounded in the fundamentals of impacting demand in today's housing market."
John Foltz, President - Realty Executives
"If you're looking for a real estate professional, someone who uses proven techniques and hard work to help you achieve your goals, then Mark is your man. From locating the property, securing financing, closing escrow, setting up property management, and beyond, Mark was right there with us. We often felt as if we were his only clients! Honesty, integrity, and dedication aren't easily found these days, but that's what Mark is all about!"
-Greg & Patty Spears
"Before we started using Mark MacKenzie a few years ago we always thought of real estate agents as a necessary evil, but he has completely changed our mindset. Since then he has become one of our biggest assets in our financial planning. Now, whenever we hear that any of our friends and family are making any sort of real estate decision we give Mark our highest recommendation. Each time we've been thanked and now Mark is one of their biggest assets too. He's not only been beneficial in our home buying but every stage in between. We feel tremendously blessed to have found someone like him at this early stage in our lives. His integrity, work ethic and friendship is something that we know we will enjoy in the many years to come."
-Clint & Kim Rowley
"I would like to express my sincere gratitude, respect and admiration I have for Mark, and his innate ability to assimilate and support my investment initiatives, on both a professional level and a personal level. Mark MacKenzie Real Estate Planning has provided me the means, I feel, to move forward with a plan to personal wealth and eventual financial security.
After contacting Mark initially, he understood my business /real estate plans, with the immediate focus to be on rental properties with positive monthly cash flow. This has been accomplished within the first few months, with an initial purchase of a rental, duplex home in Mustang, Oklahoma.
Mark worked diligently for months with the Sellers, Lender, and Property Management organizations to close the deal, as the properties were still under construction. The purchase of the property was contingent upon the properties being rented upon completion of construction. This provided the immediate cash flow, and not the typical initial vacancy with myself to carry the credit float.
I would like to add that Mark is always available via phone to answer questions or provide his Real Estate expertise. He was patient as he mentored me on many Real Estate disciplines. Where else can you find expert advice at no charge. I look forward to many successful, future real estate transactions with Mark MacKenzie Real Estate Planning."
-Timothy D. McManus
"We are very impressed with Mark's real estate knowledge in forecasting what markets he thinks are going to be a good investment. Over the past three years we have developed a great working relationship and have purchased three investment properties with Mark's tremendous help. His devotion in finding us exactly the right properties and giving us all the information we needed helped make our decisions and the buying process very comfortable and smooth. We appreciate his attention to detail and tireless work ethic and look forward to working with him on all our future real estate endeavors."
-Kurt & Kathy Dodge
"Mark's knowledge of Real Estate investing starategies has been a tremendous help to my wife and I. We are following the 10 year plan outlined in his book and are on our way to financial independance!"
-Jason & Danielle Bliss
"We recommend working with Mark to any buyer or seller. Whether you are a 1st time buyer, or a seasoned investor, Mark is an excellent listener, very knowledgeable about real estate, and will always put your needs first. We worked with Mark in purchasing an investment property in New Mexico, and plan on doing so again. Further, Mark will also help evaluate and advise you on how to achieve not only your short term, but long term real estate goals as well."
-Bryan & Kimberly Lynch
"We have known Mark now for several years. We have worked with him in the purchase of rental properties and continue to do so.
We have found his honesty and expertise to be unsurpassed. He has been of the utmost help to us and others we know. He is an extremely professional individual and takes excellent care of his clients. Mark is always easy to contact, immediately returns phone calls and provides superb real estate market information. We plan to continue to do business with him as we have great respect for his knowledge of the market.
One of the things that we truly appreciate about Mark is the way he looks at all of the real estate market information before we even start searching for a property. Once we have that information it is much easier to choose an area to invest in and feel confident about the purchase that we are making. We can later follow up on our investments by using Mark's web site to access current market information on each property we have purchased. The web site, with use of our password, shows pictures of our properties with a link to the property values which Mark updates quarterly. Mark is licensed in Arizona as well as other states which allows us the opportunity to invest in multiple markets.
We consider Mark to be more than just someone with whom we do business with. We now consider him a friend as well."
-Tim & Andrea Rattenbury
"My wife and I had talked about investing in real estate for a long time (years) but we just didn't know how to get started. We bought our first home in 1990 and it seemed like a nightmare. The ever changing figures, too many meetings and back and forth negotiating.
A couple of years ago we heard about Mark MacKenzie from a mutual friend. We contacted Mark and within 30 days we had purchased our first invesmtent property. Mark makes it easy and stress free that I can't wait to do it again.
Mark went so far as to walk the property for us and even set up a property manager. We gained more than an agent, we gained a friend.
Mark gained our trust, friendship, and lifelong investments. I still can't believe how easy and worry free Mark made our investment and the lengths he graciously went to just insure we were comfortable. We look forward to our next investment."
-Jay & Jeannette Giles
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