• 02:40:17 am on August 9, 2008 | 2

    Ryan asks …

    The availability of credit has changed significantly since you have accomplished your $7 million dollar feat.  Do you think you could do what you did, the way you did, with today’s limited access to capital?  Do you see the 7 MIT’s journey being drastically different than yours?  If yes, how so?

    This is a great question about ‘market timing’ …

    The first thing that I would say is that the basic rules of money – that I learned belatedly, mostly by trial and [lots of] error – pretty much never change.

    That’s not to say that the execution of those rules change. For example, there are two ways to make serious money:

    1. When ‘investment assets’ are cheap, or

    2. When money is cheap or in plentiful supply.

    The problem is that these usually operate on somewhat opposing pendulums: I had no problem borrowing money for real-estate investing, but ‘stuff’ to buy tended to be reasonably expensive … no great bargains around.

    It was a time for bulls: those who charged around, flipping everything in their path … if I weren’t such a goddamn careful investor – rather than a loose speculator – I would have made a lot more from my investments than I did … maybe.

    But, if I didn’t change my stripes pretty damn quick, I guess I would have lost it all again when the credit crunch hit …

    Rarely, does 1. and 2. coincide either UP or DOWN.

    One can argue (as have I) that for American single-family real-estate (houses or condo’s) that both prices and money are cheap, right now, or will be very soon … the catch may be that money supply is difficult.

    Still ‘stuff’ (RE, stocks, businesses) is probably cheap right now – or getting that way … maybe it will even touch bottom soon. Who knows?

    All, I know is that I am in a buying, starting mood and I’ll work my way through whatever funding difficulties I may face and suggest that you’ll be able to do that, too, Ryan 😉



  • Scott 6:57 am on August 10, 2008 | #

    Amen Adrian, that’s the only way I see things right now. An incredible opportunity to make things happen in a big way while there’s blood in the streets and everyone is running around like Chicken Little talking about how bad things are.

  • AJC 10:17 am on August 10, 2008 | #

    @ Scott – the sky is falling, the sky is falling a.k.a. buy now, buy now … bargains abound!

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