Gary Giffin's Blog Blog Real Estate News Events San Diego,CA

Stock Market Drops 1000 Points, Real Estate Investors Perk Up!

Stock Market Drops 1000 Points, Real Estate Investors Perk Up!

On the question of timing your private money lenders campaigns.

When should you go looking for private money?

The conventional wisdom suggests: (a) Anytime is a good time to be marketing for private money lenders, or (b) When you have a deal tied up under contract.The latter is a really dumb way to go about it. It’s too late to look into funding options when you have a hot deal under contract and just a couple of weeks to close on it. I’ll expand on this in another post.

The “always be looking for money” for your real estate deals is a pretty solid advice to any real estate entrepreneur who wants to be able to make “all cash” offers on bargain deals any time he finds one.

BUT… if you really want to make leaps and bounds in how much money you can raise, you MUST hit the iron when it’s hot. And in the World of raising money from private individuals, it’s when their OTHER investment options aren’t doing that great. Better yet, if you can time your campaigns when they’re taking a bloodbath – you will have a hyper response that will dwarf your usual interest level from these folks.

Guess what? As of today, August 5th, 2011:

The stock market (Dow Jones) lost a whooping 1,000 points in just 5 short days!

Man, oh man. The stock market investors are hurting big time right now. Their spouses don’t like them. Their retirement accounts have dropped lot of dollars. Their portfolios are suddenly looking a lot lighter.

They are wondering what went wrong? How long it’s going to take for the market to rebound? Better yet, WILL the market start going back up soon or will it continue to fumble and lose ground for the next few years?

Years lost in retirement earning cycle

These are some serious questions for lots of people who were hoping the stock market would be a long term investment solution for their retirement money. The answers will have a profound impact on the size of their long term retirement savings. If this sluggish stock market situation continues for a few more years… these would be the years taken out of their retirement earning cycle.

The years that added up to a lot lower amount of spendable income they’ll have by the time they are ready to start dipping into their IRAs. Moreover, for those who are already living on the interest produced by their retirement money – this big market drop is an instant blow that forces a lower standard of living TODAY.

Bottom line, they need an attractive alternative to the stock market. The one that’s safe, predictable, dependable and earns a decent rate of return. The return that can either grow their money, or throw off  enough cash flow to leave on today.

That’s where you come in with your private banker attraction program. You could be the knight in the shining armor who comes to the rescue and saves them from losses or poor stock market returns.

Don’t wait for the market to bounce back

The times like NOW are rare opportunities that, if you take advantage of them, will bring you virtually unlimited supply of private money for real estate deals.  Unfortunately for slow real estate investors who are too timid to take action NOW, this opportunity will soon pass.

The stock market investors will calm down and won’t be as hot and bothered about their losses. Will your campaign still get response? Yes!  Will it get a hyper-response? You know the answer. use my MLS direct website to search for over 25,000 properties in and around San Diego.

Gary Giffin, Middleton & Associates Real Estate.
visit his website, or San Diego Coastal Real Estate at , email him,


No comments yet»

Leave a Reply

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: