Southern California home sales and prices fall again in July
Evergreen Solar files for bankruptcy
Treasuries-Bonds lose ground
SEC Lauches inquiry into S&P Downgrade
New York Area Manufacturing Shrinks for Third Month
These are just some random headlines I found online and in reading these it would be easy to see why there is so much pessimism regarding our economic situation.
On the other hand, when looking smaller and more locally the reality is there are still some great opportunities for those who have positioned themselves properly.
A few days I ago I was having dinner with someone and his phone rang. He apologized for taking the call but as he put it “there are so many opportunities out there right now and if I don’t make myself available I might lose out on one that I want”. He took the call and it ends up it was from a bank he has a strong relationship with wanting to know if he wanted to buy a piece of machinery. It was something he needed and because they needed to get it off their books, he was able to buy it for around 50% of what he expected to pay. The bank was happy to get it off their books and he was happy to get something he needed for a great price.
The very next day I went to look at a possible rental property to purchase. A few years ago when I started looking at the possibility of owning some residential houses to rent out I read where 1% would be a good rent/price ratio (this means if the monthly can be 1% or higher of the purchase price plus renovation cost it would be a good price). The house I went to look at the other day could be rented for more than 3% of the purchase price plus renovation costs.
Later on that day I received a call from a friend who had purchased a large piece of land that day and had a buyer for that same property lined up who would be closing within 30 days and this friend would be selling for twice what he paid (within 30 days).
In each of the cases above it was a case of being available to consider (and pay for) an opportunity when it arose as well as taking the time to develop the relationships through networking to find out about the opportunities (in each case it was simply being told of an opportunity that was available to anyone else, in no way was it any type of insider trading or anything like that). These relationships were developed with in-person communication (as opposed to being friends on FaceBook or linked together through linkedin.com).
There are a lot of negatives these days about the economy (and many of them are accurate) but there are just as many opportunities out there for those who are willing and able to take advantage of them.
Just something to think about.
Have a great day!