Featured in NSIDE Business Magazine

Hey guys check out this article that I wrote for San Antonio NSIDE Business Magazine talking about the state of the economy and what that means for Real Estate investors, entrepreneurs, and small business owners. I mentioned being a part of Mike Dillard's Elevation Group, constantly being informed and ahead of the curve.

The media out there makes things sound horrible and the truth is things will get much worse before they get better. That just means more opportunity. Learn more about it here on my blog, Have an awesome weekend!   

http://www.getnside.com/sa/magazine/business/current/articles/1961-Perfect_Timing/

Perfect Timing
Written by: David Montelongo
Issue: January 2011 | NSIDE Business
 
What side of the wealth transfer will you be on? 
Is 2011 going to be the year that changes the game for your financial future? I believe the choices we make over the next several years will definitely shape our financial outcomes and our ability to either succeed or flounder in these crazy economic times. The United States has taken a beating over the last several years, and many people’s retirement dreams have been swept away. Millions have lost 30 to 50 percent of the life savings that were held in their 401k accounts. It’s interesting, however, that wealth is never lost; it is only transferred. I believe we are about to experience the largest transfer of wealth in our history. My question to you is: What are you doing right now to make sure you are on the right side of that wealth transfer?

If you are not sure, let me first say that understanding the past is very important in predicting the future. History truly does repeat itself, and a brief history lesson will help lead you in the right direction in preparing for a positive economic future. Not everyone suffered during the Great Depression. More people became millionaires during this time than in any other time in American history. Opportunities that had not been present during the 1920s economic boom times suddenly became available. Savvy entrepreneurs edged in and positioned themselves for when the economic climate improved. It was these “if you can dream it, you can do it” Great Depression entrepreneurs who made the best of the crisis to provide a service or product for new markets.* Sound familiar? We are in the midst of repeating history! An economic downturn is a good time to start a business. Start-up costs are much lower in a recession than in boom periods.

I am a member of a mastermind group made up of multimillionaires and billionaires called “The Elevation Group,” founded by Mike Dillard. Its members say, “What’s going to happen in the economy during the next six to 36 months will bankrupt 95 percent of the population. This has already happened in 30 different countries during the last 100 years, and TWICE in the U.S.” Whether you are currently building your financial empire or you want to create a nest egg for yourself and your family that will last for generations to come, it is the perfect time to get involved in real estate. Since the beginning of the meltdown in 2007, foreclosures across the United States have been at an all-time high. This time has been a bit confusing as a real estate investor because the banks have reclaimed so many properties that one would think there would be major fireside sales going on. In reality, the banks have been very tight and for the most part, unwilling to sell off property at a price point that makes sense to an investor.

However, in September 2010, we actually began to see the banks loosening up their belts and selling property at a price point that makes positive dollars and cents to the real estate investor. For us, this is exciting news. A shift is occurring from the resume-driven society to people creating their own jobs through entrepreneurship. This results in those hardworking people not putting complete faith in big business where jobs are created for them, but in their own success. According to the National Association of Colleges and Employers, only 24.4 percent of 2010 graduates who applied for a job had one waiting for them after graduation (up from 19.7 percent in 2009). “THE lesson may be that entrepreneurship can be a viable career path, not a renegade choice – especially since the promise of ‘Go to college, get good grades and then get a job’ isn’t working the way it once did,” according to the New York Times.

People with cash savings have been holding onto it; this is similar to the days of hiding money between mattresses because the dollar has been devalued in this economic state. It is true, however, that turning that cash into assets, such as property, produces cash flow. You make money instead of hiding it. Cash flow properties like small apartment complexes and rental houses are key to building a great investment portfolio. Due to the large number of foreclosures, many people now rent. This is good news for the investor because investment properties provide remarkable returns.

I highly recommend that you consult with a financial advisor and challenge him or her about your portfolio. Ask questions of your advisors to make sure you are getting the highest returns this year, and expect straightforward answers that are not status quo, but unique to your situation. Definitely consider real estate as a top choice for your upcoming investments. Real estate offers immense possibilities for growth to your economic portfolio in 2011. It really is the perfect time to get involved in real estate.

David Montelongo is a real estate investor, national speaker, mentor and author.

For more information about investing in real estate or starting a real estate investing business, please contact Montelongo Coaching Director of Operations Rey Lerma at 210-569-0669, or visit www.montelongocoaching.com.