like a true business and encouraged those he educated to do the same. Augie was one of the first clients I met when I joined NuView and he helped me understand some of the creative investments that he and his clients were doing through their self-directed accounts. He was a big promoter of transactional engineer- ing – a way to move the parts of the deal around until they work for all parties. This has served me very well in many of my personal investments. Augie and his wife, Audrey, estab- lished their accounts with NuView and have seen their old 401k plans grow to well over $1 million! THE BUST (2008-2010) As the saying goes, all bubbles eventually burst and this one was no different. While the great recession officially started in December 2007, the real shock and awe factor was felt in 2008. The credit crunch elim- inated companies like Lehman Broth- ers, Bear Stearns, and Washington Mutual, and in September of 2009, the stock market saw its worst point drop in history (at that time) of 750+ points. Real estate inventory was rising, and prices were dropping– in some cases up to 50% or more. Despite the quick drop in real estate prices – many of our clients holding rental real estate were not affected nearly as badly as their counterparts in the stock market. Many owned the real estate in their IRA free and clear, so they were not dependent on rent to pay their mort- gage. Furthermore, the increase in foreclosures only served to increase the rental demand. Some clients sought a safe haven in precious metals during this uncertain time. Unlike stocks, which are typically held for their appreciable value, private loans and real estate tend to be income-producing, which can fare much better through correctional periods.


Made with FlippingBook Online newsletter