HARD ASSETS

To say that Americans are suffering an extreme crisis of confidence with respect to their financial institutions, that were for so long trusted as unshakeable vessels in which to invest hard-earned savings, is putting it mildly. Indeed, we barely have time to swoon in stunned disbelief as one of these pillars of trust dissolves into insolvency than the next one fails just as spectacularly; taking with it the assets—at least on paper—of a sizeable number of everyday Americans like you and me. Some of these assets may eventually recover; others are gone for good.

Forget about choosing paper options that offer the highest rate of return with the least amount of risk, sensible Americans—who haven’t completely lost their faith in investing— are scrambling for sure-fire places to park their money over the long haul; where there is never a chance it could completely vanish into thin air. Thus the quest for “hard assets,” has taken on a whole new sense of urgency as paper assets have all-too-publicly proven their ugly vulnerability.

Loosely defined, “hard assets” are non-financial holdings. They’re material possessions whose value you can touch and feel—like real estate, gold and silver; or commodities that can actually be put to good use—like crude oil and copper. All of these can be sold at a profit (or loss) depending on where they are in their economic cycles. None can simply become worthless in the blink of an eye.

For prudent investors—who believe that the risks of investing in stocks, bonds and other exotic financial instruments, should be offset by the relative security of owning hard assets—real estate has suddenly resurfaced as an alternative well worth considering. For not only is real estate’s affordability on the increase—as in “buy low, sell high”—but history reveals that a correcting real estate market will always come back as a healthier version of its former self. And while you wait for that to happen, you can live in your investment, enjoy it, improve on it or earn income from it. You can raise your family in it, run a business from it and feel warm and fuzzy about it in ways you’re never likely to feel about your stock portfolio. Best of all, while real estate’s long-term worth may experience cyclical ups and downs, it never suddenly ceases to be.

What do you as an owner-investor need to know to make the best possible buy in today’s real estate market?

First, with so many properties for sale and so many short sales and foreclosures clouding the picture, you need the best possible advice you can get. A licensed professional Realtor®, with unlimited access to the MLS (Multiple Listing Service), is uniquely positioned to help you carefully evaluate competitive listings to make sure you are opting into the best possible buying opportunity. To maximize the eventual return on your investment, you should endeavor to buy the most competitively priced property in your preferred neighborhood or price range. That way, your home will appreciate that much faster once healthy appreciation begins anew. In these times of tightening credit, cash is king and a good credit history an absolute must. Most lenders who still have money to lend require 20% down and complete documentation of your employment status and ability to manage your monthly payment. We are extremely proud to inform all who wish to buy a home and qualify to borrow that MS&C Mortgage partners with Wells-Fargo Home Mortgage to provide financing exclusively for customers of Michael Saunders & Company

Wells-Fargo, in addition to being one of the two best capitalized banks in America, is the only U.S. bank included in the newly released ranking of the “World’s Safest Banks” to be featured in the October issue of Global Finance Magazine—an extreme honor, to be sure, when many of the largest names in mortgage lending of just a few months ago are no more.

As a potential buyer there is much you need to know to make the best informed decisions in a complicated and fluid market. Your sales associates from Michael Saunders & Company is not only ready to personally guide you every step of the way, but one of the largest and most-visited pages on michaelsaunders.com has been set up to showcase only those properties that have been judged “Best Opportunities” based on each being priced below a recent certified appraisal and a thorough CMA (Competitive Market Analysis). Visit the “Bank Owned and Best Opportunities” page of michaelsaunders.com.

With the click of a mouse we can show you how investing in hard assets needn’t be hard at all.