In the last issue we talked about the Fed all but promising that they would hunt down U.S. citizens abroad for targeted assassination if bureaucrats deemed it necessary.
We at the Wealth & Freedom Foundation believe this is a step towards control of the U.S. populace through the threat of detention and even assassination within the country.
It’s a real downer. So I thought we’d lighten things up this week… at least a bit.
So I have a story for you today. It’s the perfect illustration of the current state of the housing market in the U.S.
A 14-year-old girl in Florida, name of Willow Tufano, bought a house – and she already has renters! This wasn’t some gift from overindulgent parents or some weird scheme.
She used her own money to buy a short sale in her neighborhood. The sale price of the home at auction? $12,000.
At the peak of the market, the property was going for over $100,000. Now, technically she owns only half the house. Willow’s mom, who owns several rental properties in the area, came up with the other half.
But Willow plans to buy her mom out with the money coming in from rental income, as well her business.
Yes, Willow also has a business. That’s how she came up with the initial investment. How she earned the money makes the story even better.
She gets free or crazily-discounted furniture from foreclosed homes (from investors who would throw it away anyway). She then sells the items for a profit. She brings in about $500 a month – not bad for 14 years old.
I find it hopeful that at least some of our young people are showing some entrepreneurial drive. I’m even getting a little teary-eyed.
But you know me, it’s not all rainbows. The truth is that the housing market is a mess when you can buy a home for $12,000.
But that means there’s an even bigger opportunity to profit if you follow Willow’s example.
Just as we outlined in our Profits in Crisis report, income from rental properties is an ideal way to make money from the ongoing financial crisis.
Home ownership is way down, to just 66% according to the latest numbers. And more and more people are renting, a trend that’s expected to continue for the next several years at least.
One reason is that it’s become much harder to get a mortgage as banks become more strict with requirements for the average homebuyer. Plus, there was a lack of construction of rental apartment buildings during the boom.
That demand means you can charge more for rent, which pairs nicely with the bargain basement prices for single-family homes. That’s the part of the rental market that we recommend, singe-family homes, preferably 3 bedroom/2 bath.
That’s the sweet spot. Start with one home in an area you know, maybe even your own neighborhood. Wait for a good deal. You might not find something at $12,000 like our young Willow, but there are plenty of deals out there.
Fix it up a bit. Then rent it out. The difference between your low mortgage payment and the monthly rent will provide a nice regular income for you.
To Safe, Secure, and Lucrative Investing,
Peter J. Bryson
Founder, Wealth & Freedom Foundation