FROM CRISIS TO OPPORTUNITY

CRISIS THEN: In 1981 and 1982 combined, the S&L industry collectively reported almost $9 billion in losses. Worse, in mid-1982, all S&L's combined had a negative net worth. In 1980, 4,600 S&Ls operated around the country. By the end of 1988, 2,000 had collapsed.
The crisis struck when the Fed raised interest rates to 15% between June 1979 and March 1980, forcing S&L's to pay out much higher interest rates on their deposits. But regulators had capped the rate increases S&L's could apply to their mortgages, so their loan income could not keep up with the interest they paid to savers.
SOLUTION THEN: The Resolution Trust Corporation (RTC) was a government-owned asset management company formed by Congress in 1989 to liquidate assets (primarily REO portfolio pools) that had been non-performing assets of about 750 insolvent S&L's.
CONCLUSION: Astute investors made fortunes buying up distressed debt (REO'S) from crippled S&L's in the late 1980's.


The best investors, i.e. Warren Buffett, love crises because they always create deep value investments. "And deep value investments have less downside risk and more upside potential than any other financial opportunity in existence."

CRISIS TODAY: Foreclosures are at an all time high rate in all neighborhoods. Banks repossess houses. (from upside-down subprime borrowers usually) Banks do not want to be in the real estate business, they want to lend. Holding properties ties up their reserves.

SOLUTION TODAY: In short, MOST banks will do almost anything to get REO's off their balance sheets, including selling them at 40% - 50% discounts... especially to Investors who pay cash upfront. IN OTHER WORDS... "Instant Equity can be created with bulk REO Portfolio Pools"

CONCLUSION: History repeats... Real estate opportunities are cyclical. Change brings Opportunity. Astute Investors today recognize that the subprime-lending mortgage industry is in the grips of an S&L-style crisis. (just like the S&L loans in the 1980's)

A RARE AND EXCELLENT

INDUSTRY GEM...

NOW may be a good time to check out real estate investment vehicles that participate in bulk REO Portfolio pools. There is a source for serious REO Portfolio Purchasers and Experienced Wholesale Investors. They have access to inventories from 50 top banks, hedge funds, insurance inventories and mortgage companies that are drawn down weekly in investor queue and sold in national and state pools.

Buyers MUST be equipped to close quickly... Participating parties are qualified in advance with POF (Proof of Funds) requirements demonstrating an ability to execute contracts and close in the required time schedule.

If you desire to register with this source for bulk wholesale purchases, contact Ms. Brown at brown4u22003@yahoo.com.

DISCLAIMER: Information shared herein is NOT an advisory nor is it intended to render or give legal, tax, economic or investment advice and disclaims all liability for action or inaction taken as a result of communication from or to its author. If legal or other expert assistance is required, the services of a competent professional should be sought.