Common sense makes more sense!

We are certainly living in interesting times. Every time I talk to you and other club members I am challenged by the topics that I never expected to discuss. Especially, given the normal real estate market of a few years ago and the easy money available at the time for investments in income property.

I am just amazed why we, as Americans, are so in conflict with the government over the best solutions to solve our financial problems. Because many of these problem solvers and life changers (We Can) and (Change We Can Believe In) are flush with college degrees, I summarize that many of them just went nutty by degrees not by illness.

So, I decided to step back and look at the situation and use some old fashion common sense. That has always been my solution to problems that are not being solved by "intellectual giants," especially those in political positions, who use government validation of their "extraordinary skills."

So, let's examine the mess we are in and apply common sense to understand the problem and possible solutions.

Let's take the recent economic meltdown that created the problem in the first place and understand what went wrong. Did we (you and I) do something wrong? Did we demand too much from the government and create this problem?

As I understand, there was a passionate movement to ensure that home ownership be afforded to every breathing person in America regardless of FICO score, Social Security or residency status. Thinking back, it was never MY dream. I didn't demand it. I always thought the reason millions of people migrated to America, legally or illegally, over the last 200-plus years was to participate in the American Dream. That dream included home ownership and a better life for our children. That dream has been working for all this time, so why change it?

When I was a kid in Peoria, Illinois, I remember going to the annual Christmas Party at my church, Arcadia Avenue Presbyterian Church. I'd receive a small box of goodies that included candy, nuts, and fruit. It wasn't much, but it was given with love by Santa (the pastor in a Santa outfit). It was a very big treat!

The decorated box didn't cost much, but it was a gift nonetheless, and a valuable one because it was wartime and fruit, nuts and candies were a treat.

After the war, things loosened up and so did the standard of living. Before long, I had a paper route and had enough money to afford my own candy, ice cream, and gifts. The church's Christmas box gift was no longer a treat. The church soon broke tradition, and had a Christmas pageant instead. What was once a special treat became a memory.

I remember my feeling when I bought my first home. I felt like it was a treat... something special for my family and I. It was a gift of sorts because the banks made it possible for me to buy it with good financing. Nobody gave me the home. I earned the right to buy it by having a job and good credit. When I closed escrow on my first home I felt like I did at my church's Christmas party as I opened my box to savor the goodies inside. I earned the gift because I was a kid and I attended that church, but as I grew older I outgrew the gift and accepted responsibility to earn what I wanted and needed.

It never occurred to me that I was "entitled" to a home. I had to earn it and because I lived in a free-enterprise system, I was able to "earn" the right to own a home. Others were willing to deposit money in the bank and the bank in turn was able to make loans to finance the purchase.

So, what happens when the American Dream becomes the American Entitlement? People don't have to earn it, they just demand it. But who encouraged that misguided form of thinking? Not you or I! Not even the majority of the American citizens! No, it was government who thought up all these "entitlement" programs.

First, it was Franklin D. Roosevelt, then Jimmy Carter, and then Bill Clinton. In their hearts they believed that everyone should enjoy many of the benefits formerly known as the American Dream. As a result, the dream became a right and now we see the results.

This administration is responding to millions of people who demand their "rights," which far exceed the freedom to earn your own way and reach for the stars by working hard and taking chances.

My common sense tells me that the government has made a huge mistake. What do you think?

Please send comments to info@tenpercentdown.com.

Thank you,
Chuck Salisbury
TenPercentDown.com

Take Back Control of Your Retirement!

Chuck Salisbury, author and real estate expert, will be discussing the essential facts about a successful retirement. It's a different world than it was just a year or so ago, and everyone of retirement age needs to take a fresh look at his or her personal situation. Your 401K is probably half the value it once was worth. Learn how to take control of your retirement planning with just 4 important steps! Limited seating. Must register first at TenPercentDown.com in the calendar section.

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If you are not on Twitter yet, you may want to start right now...and "follow" TenPercentDown. We promise to "follow" you as well!

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TenPercentDown is dedicated to all who seek to invest their hard earned money and savings, and avoid the enormous potential for loss associated with typical investment choices.

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The most successful investment in the U.S. is not stocks, bonds, mutual funds, commodities, annuities, or any related products. The best investment is real estate.

The author of "The Incredible Investment Book," Chuck Salisbury will answer any real estate questions here. We welcome your input, too!

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Reverse mortgages...there's a better way

Many senior citizens are using reverse mortgages to supplement social security, meet unexpected medical expenses, make home improvements, and more.

Your home is probably your largest single investment, so it is smart to know more about reverse mortgages and decide if one is right for you. I believe it's important to present my conclusion about this government-created program. I've concluded that a reverse mortgage is, for some seniors, the last desperate step before insolvency and that there is a better and safer method to accomplishing an increase in monthly income. With my guidance and instruction you can also increase your net worth rather than eliminate it.

That being said, let’s examine a HUD created reverse mortgage.

Exactly what is a reverse mortgage?

A reverse mortgage is a special type of loan used by senior citizens to convert the equity in their homes into more income. The money obtained through a reverse mortgage can provide senior citizens with the financial security they need to fully enjoy their retirement years.

What types are available?

There are three basic types:

1. Single-purpose reverse mortgages, which are offered by some state and local government agencies and nonprofit organizations;

2. Federally-insured reverse mortgages, which are known as Home Equity Conversion Mortgages(HECMs), these are backed by the U.S. Department of Housing and Urban Development(HUD); and

3. Proprietary reverse mortgages, which are private loans that are backed by the companies that develop them.

To learn more about reverse mortgages, including qualifying, advantages and disadvangtages, and need-to-know information, go to TenPercentDown.com and sign up to receive my FREE newsletter. Click here!

--Chuck Salisbury

Why You Should NOT Buy a Foreclosed Property!

The more depressed the real estate market gets, the more the "promoters" come out from under the woodwork...out from under their rocks...or wherever they have been hiding.

They come out to pitch their expensive (and unrealistic) plans and programs about how to get rich in real estate through foreclosures.

Right now, the residential real estate market is softening, which sadly means that more families are losing their homes due to foreclosure.

In a strong real estate market and in a strong economy there may only be a couple of foreclosures in a neighborhood at any given time. Right now, when the real estate market is sorting itself out from the sub-prime debacle, foreclosures abound.

A lot of people have the idea that one man's loss is another man's gain. But when it comes to foreclosures, one man's loss may be the next man's loss, too.

Why buy foreclosed properties? When you buy a house that's been foreclosed upon, you're buying a house that didn't sell. The owner of the house couldn't sell it and the bank couldn't sell it. They're just hoping that a sucker — I mean an "investor" — like you will come along, ready to take that white elephant off their hands.

Let's first consider the question: "What is a foreclosure?" Very simply, it's when an individual who owns a house, has taken out a mortgage and can no longer make the payments. They couldn't sell the house for a price that would allow them to pay off the mortgage so the bank stepped in to recoup as much as it could of what turned out to be a very bad investment all around. If you buy it, you own it, and need to pay the mortgage on an empty house that likely hasn't been maintained.

How long can you afford to do that?

More often than not, investments in foreclosed property turn out not to be like winning a lottery, but a path to bankruptcy! You might be willing to offer more than the other speculators, but what does that tell you? It means that all the other real estate investors in your neck of the woods were not willing to put down as much money on that property as you...in your infinite wisdom!

It's too bad they already made a TV show called "The Biggest Loser," because that’s how I would describe anybody unfortunate enough to offer the most money, out of all the speculators, to the owner of a foreclosure property.

Once again, you've got to ask yourself whether you're smarter than all the other investors looking at foreclosures, and all the home buyers who passed up the opportunity to buy the house from a realtor or directly from the owner, and the bank or government entity currently in possession of the house.

If this sounds harsh, I'd rather you learn from me that foreclosures don't work than learning the hard way. I don't want you to learn the hard and painful way, by going through the time, trouble, and expense of a property that costs you more in money and heartache than you could ever make... even if things really worked the way the foreclosure hucksters would like you to believe.

I can offer you the stories of countless people with sad experiences who thought they could make money in real estate through foreclosures. By and large, they didn't. But a new generation of hopeful investors arises every day, and the people with those full-page ads for seminars on how to make money in these fields continue to prey on them.

Can you still make a fortune in real estate?

You bet! Do it the right way, and you'll be very satisfied with your results. It's a turnkey approach that is disciplined but very effective.

It is truly the #1 way to invest in the # 1 investment in America -- which truly is real estate!

Chuck Salisbury outlines the safest, most conservative way to invest in real estate in "The Incredible Investment Book." For more investment advice and a free newsletter go to www.TenPercentDown.com.