The rise in residential foreclosures has crippled our nation.
Mortgage money for worthy buyers is becoming increasingly harder and harder to find.
Credit card companies are reducing credit limits and raising interest rates.
And I told my wife that I can make a living in this stuff? She's expecting another check soon...
The perspective from my very own little investing corner of the world is that our industry is in super-flux.
Anyone that fancies themselves any sort of an investor might be wise to take a moment to reexamine their investment opportunities, exit strategies and expectations.
In my opinion, the term investor is ripe for reevaluation.
This "re-casting" of our investment criteria and objectives should begin with investor education and enlightenment.
Not the same old re-hashed and re-packaged the-same-way-to-accomplish-same-thing-but-different education, I mean real content, cutting edge knowledge, new and exciting ways to profit.
Because a wise man once told me, "you don't know what you don't know".
When education is combined with an investors desire to succeed the result is a quick and profitable ascension to the top of their given field or specialty.
Educated investors have the ability to think in a disciplined and rational manner, they learn how to dispose of problems quickly, and gain insight into proposed transactions that other less educated investors might fail to recognize.
I believe that most educated investors continually seek and find their best deals within a space I refer to as "Defaulted Investment Opportunities".
All any investor needs to do to gain access to this lucrative niche market is to study and become educated in "default".
Default Investment Opportunities become available whenever a borrower fails to make a regularly scheduled or otherwise required installment (usually monthly) payment to a creditor (either credit card company or mortgage lender).
Within Defaulted Investment Opportunities lie some of the most outstanding investments available; short sales, foreclosure purchases, discounted mortgage purchases, tax deeds, lease options, subject to; all made available or become greatly enhanced (potential profits) because of the default.
However, all other proposed investment opportunities (and I do mean each and every one) absolutely pale in comparison to, what in my opinion is, the most profitable and viable investment opportunity available.
The purchase and profit from investing in defaulted credit card debt.
The market for this investment was in its infancy in 1992 when I first started investing in defaulted credit card debt.
As time went by, more and more credit card originators grew warm to the idea of controlling their inventory of defaulted assets (That's the pompous name given to these essentially non-paying accounts.
As if this title will draw a higher bid or something?).
The reason for my excitement can be explained in one word; VALUE An educated investor can acquire a small fortune in a relatively short period of time with a minimal cash investment.
Accounts are trading (another industry term) anywhere between 6 and 10 cents on the dollar.
The industry average for collecting this type of account exceeds 35%.
This translates into a potential profit between 25% and 29%! Additionally, these accounts can be purchased in almost any collection status (from 60 days delinquent to out of statute).
Your purchase can be stratified by zip code meaning you pick the zip code (or codes) and all your accounts are guaranteed to be from within your described zip code(s).
There is so much to be said about the benefits of this type of default investing that I could go on and on for days.
However, it is my hope that you have caught a glimmer of my enthusiasm for this obscure investment vehicle from this small article.
In any event, don't be afraid to examine where you are in your investment career and above all remember, "You don't know what you don't know".
Take the time to find out.