Right-click to download the podcast.
Subscribe on iTunes
The Absolute Perfect Situation
Well, my friends, have you ever just wondered—well, maybe wished that you could wake up one day and find yourself in the absolute perfect situation? Have you ever wondered if that could ever happen to you in your life? You know, I listen to these prognosticators and these radio guys and TV guys, they’re talking about, you know, what’s going to happen over six months—the next six to twelve months and where is the world economy going, the recession going and this going and that going. I’m addicted to this stuff just like you guys are probably to talk radio.
‘Cause you just — either you are listening to them because you’re scared to death and you’re worried about it or listening to it because it’s just so much nonsense that you just can’t even believe that these people are worrying about this minutia and crap of day-to-day over and over re-analyzation of the same old problems when the truth of the matter is we are right now in the middle of the greatest buying opportunity that there has ever been in my lifetime.
This is a Phenomenal Time
What I’ve accomplished in the first five months of this year compared to what I accomplished in the whole previous time of my life is phenomenal. It’s just simply phenomenal. I have purchased three times more real estate than I purchased in the first 50 years of my life this year. And I’m at it again with this new Class A apartment here in Houston.
Is it just because Houston’s the perfect place? Houston is the perfect place. There is no doubt in my mind there is no better place in this country right now to purchase real estate than in Texas. Houston is one of the three major metropolitan areas that are just rocking. It’s unbelievable—actually four. It’s just unbelievable what’s out there, what’s available. If you are not taking advantage of this opportunity—here as a Texas resident with this incredible opportunity going on, I just don’t know how you are going to live with yourself ten years from now.
Don’t Rationalize it Away
It’s going to be something you look back and rationalize away. Well, you know, it was this, it was that, and people are going out of business and blah, blah, blah, blah. People, what’s happening is the poorly operated businesses, the over-leveraged businesses are going out of business. And the people that are able to purchase those now when there’s blood in the streets are buying properties 50 cents on the dollar. We are even buying, like I said now Class A properties extremely below their value—maybe 30 percent below their value of just a year ago. This is incredible stuff, folks.
And I see the people that are with me and we’re here and we are doing this and they’re exuberant, and they can see it, and they can smell it. But yet there’s still people out there like yourself sitting there that haven’t taken the first step towards any of this stuff. I get e-mails where people’s lives have been changed in six to eight months doing this.
And then there’s people out there like you that are still listening to this trying to get your arms around this, trying to figure out how making instant gains that are guaranteed because you don’t buy them unless you make them and having instant cash flow—how that’s not better than buying something and hoping it goes up or hoping it goes down and speculating your life away and having no cash flow and no dividends and no way to retire?
I can’t see why I can’t get across how completely more beneficial and more effective this type of investing is. But there it is. That’s my weakness. It’s my limitation in life is the inability to get you to see what I see. And it’s costing you. And that hurts my feelings.
More Evidence that Texas is IT
Let me read you a couple of articles that have come out here just recently, sent to me today. The first article says, “DFW homes are undervalued. Homes prices in Dallas are almost 32 percent undervalued according to the National Economists and the IHS Global Insight Study. The same study indicates that the prices in DFW have remained virtually unchanged over the year ending the first quarter of 2009. Texas housing has traditionally been considered undervalued because of the ease of building in the state.”
Now, think about this. Prices decline in 199 of 300 markets surveyed across the country and Dallas didn’t go down at all. Now, in an economy where 40 percent of all the wealth has been lost in the last year and a half, you have a real estate market that has not declined, in fact, it’s considered undervalued — is really worth more than what you’re paying for it.
And at the very same time you are buying these properties 50 cents on the dollar from that un-lowered value. You are making a killing. What they’re saying is a hundred thousand dollar house is still worth a hundred thousand dollars, but you can go out and buy it for $50,000.
50 Cents on the Dollar
Now think about that. If Microsoft stock was a hundred dollars and you had a way to buy it for 50, wouldn’t you think that was the most incredible thing in the world? Especially if Microsoft stock would actually pay dividends and throw you out a couple hundred dollars, three or $400 in positive cash flow? That’s what’s going on. It’s going on in Dallas, it’s going on in San Antonio, it’s going on in Houston, in some cases maybe Austin—but that’s a different kind of market.
But what is interesting about Austin is the reason these massive declines are not happening and the reason you can’t buy these four quarters at 50 cents on the dollar—is because Austin is the number one—I am sorry. Austin area stood out as the third in a row of the nation’s strongest job markets among big cities according to the data released Wednesday by the Bureau of Labor Statistics among 38 metro areas of workforces of 750,000 or more only Austin gained jobs from April of 2008 to April 2009 — only Austin gained jobs. The area posted a four-percent gain adding to a total 3400 jobs and bringing the regional job count to 781,000. Midland/Odessa also posted gains of two percent and 2.9 percent respectively.
Your Money Should Be in Texas
So there it is, folks — the panhandle, Austin, Dallas, Houston, San Antonio. This is where your money should be at—not China, not Africa, not Brazil, not India. It should be in Texas, boy. Texas. This is Texas, boy. This is the place to be. This is where all the money is being made and has always been made. All the little boys up there in New York, all those little wall-streeters, them little boys got their behinds kicked ‘cause they’re selling paper. They’re not selling land. They’re not selling real estate. They’re not selling stuff with tangible value. Ah, that’s the difference—tangible value.
