Remember the Boom-Bust cycle of 1982-1987 or is this coming interest rate rise impact news to you?
The financial bloodbath was unforgettable in Austin, Texas where I bought at the bottom & made millions. NOW, can you hear cycle echo... Boom to Bust?
I went into Real Estate investing first as an agent, right after I bought my first house owner financed in 1984. I learned in my first Real Estate Law class that I had royally screwed up with an unrecorded contract for a deed, not a real deed, only to have to walk away from my biggest investment, losing half of a year’s pay at that time, learning what not to do when buying your first house. Total loss of $3,500 in a mere 6 months. Having suffered economically, eating out of dumpsters and diving in them for stuff to sell at the flea market to get money to buy parts and rebuild my Schoolie motor that blew out twice on my cross country trip to bring me to Texas from Florida via Seattle, Wa. It was a long trip to Texas, but worth it in every way. Find your place, then create your homestead.
Later, having gotten a RE license, I bought my second house in 1985, a tiny 2 bedroom 700 sf house built in 1940 for $65,000. The bottom promptly fell out of the market and within two years the house was only worth $45,000 and did not get back to the purchase price value for nearly 10 years when the balloon payment was due and I needed to sell it. Prices were low compared to now, $15,000 would buy a fixer-upper in the bad part of town that now costs $300,000 just for the loss. That will change soon too. Seemed insanely high in a time when interest rates were 11%, but the owner financed, my girlfriend Suzanne, and I got 10% interest and thought we were doing great.
Suzanne got pregnant soon after, quite the surprise, and the RE market went Bust!!! I had bought my second house because my son was born and I promptly lost the bulk of the value in that quickly too. The shattered broken market was a surprise, unprecedented for the fall of 1986 most young investors do not remember. It was a housing investor bloodbath, as well as home builders, Austin, Texas actually had over 600 builders before and well under 100 after, taking down many a small contractor in the process of everyone going bankrupt at the same time. It took a couple of years for the process of rich people getting loans to get cheap houses and then shortly thereafter making millions off the rebound/reset.
1986 RE bust in Texas broke most of the Players at the time, rather than run, I stayed and rode it out to later make millions in the years after as I rehabilitated crime-ridden neighborhoods and houses in the worst parts of town where I could afford to invest. I had the first cybercafe in Texas before the Dot-com boom, missed the peak by a couple of months but had a life with my son, Adam Kittel, instead of missing out and being around him at first while working from home, while he was young before he passed away at 24 yrs old but left his "Song of Salvage" which I posted on Youtube after he passed... to resonate for as long as I can play it. More millionaires are created out of the salvage industry than any others.
Will people awaken to that? I rode the waves up and left Austin to create a giant salvage mining, building, and sales business, then Tiny Texas Houses, all along trying to sing the Song of Salvage to convince others to see the treasures at our fingertips if we challenge Americans to use them. Need is a great motivator, the primer for ingenuity and imagination to take over once passion is ignited thus giving legitimate hope for dreams of a new path to materialize, to thrive with others in your community during the worst of times. More great business start-ups during such times, answering needs that others had not done before. NOW is the time to flame on and Light the path for those who do not understand how they got so lost and blinded by the lights on TV and the Demoncratic Party.
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