by Bill Bartmann

It’s rare but every now and then in nature, three storms come together at the same time and same place. When they do, it’s really catastrophic. It’s called a perfect storm, like the movie with George Clooney. Right now, you and I are living in a perfect storm in the economic world. There are three things that are happening – right now – that are causing this perfect storm to occur, creating what I believe to be the very best home based business opportunity.

The first one is the law of supply and demand. When there’s an oversupply of anything, the price for it falls. When there’s a scarcity of anything, the price goes up. Simple. Economics 101. There are so many bad loans available – right now – that the price is falling like a rock; which, for you and me, means a great opportunity. We can buy loans at a lower price than we ever could before and, because there are so many of them, the price is coming down even further.

But that’s just one of the storms.

The second is that the seller of these loans is not the owner. That means there is no personal or financial attachment to these loans. The seller is the FDIC, the Federal Deposit Insurance Corporation. They don’t own the loans, they just took custody of them when banks got in trouble, and they are now selling the loans at a deep discount.

The third storm is the next election just over a year away. We had the Presidential election last year, and elected one-third of our Senators, and all 435 members of out House of Representatives. As you know by now, the Democrats won resoundingly by convincing America that they were going to fix all the problems brought on by the Republicans.

Well, next year, all 435 House members are up for re-election. If the current economic crisis is still going on, it will become the Democrat’s problem. So the Democratic administration is going to do everything in its power to make this problem go away before the next election. So these three storms – the oversupply of inventory keeping the price low; the seller not being the owner; and the political pressure to hurry up and push all these bad loans through the system – are creating a perfect storm. This is one of those great and unique opportunities for everyday investors, including you and me.

But it’s much bigger this time around.

During the Great Depression, it was a 5-billion-dollar problem. In today’s dollars, that would be about 125-billion-dollars. The crisis in the 80s and 90s was about a 250-billion-dollar problem. Today’s problem is measured in the trillions. The perfect storm brewing right now is creating such an opportunity that every one of us – if we choose to – can make more money than we ever thought possible.

Not only has the volume of loans increased – which makes it an even better opportunity – but now the financing options just improved. The FDIC has developed a new program that caters to the individual buyer, as opposed to the big Wall Street investors. I put this opportunity in two different categories:

1. Regular Opportunity: The regular opportunity is to just buy non-performing credit card loans from the loan brokers who are offering them for sale, and we show people how they can buy these for as low as a nickel on the dollar and settle with the customers for 10, 15, 20 cents on the dollar. That’s the regular opportunity, and that’s will last for another year or two, maybe three, if we’re really lucky.

2. Super Opportunity: There’s a new opportunity – an opportunity that didn’t exist back in the 80s & 90s when my wife Kathy and I were doing this. In fact, it didn’t exist even a few months ago. You see, the FDIC – the entity that takes over banks when they fail – has created a brand new program that they are test driving right now. It’s called the Legacy Loans Program.

The Legacy Loans Program

The Legacy Loans Program is a program created by the FDIC that allows anyone who chooses to become involved in this business to not only buy the loans, but benefit from a vehicle whereby the FDIC will provide some, if not most, of the funding. For example, for every $1 you invest, you can get matching funds and loans bringing the total to $14, and the first $1 doesn’t even have to be your own money!

That’s right – you don’t need YOUR OWN money!

When I first did this back in the mid-80s, I answered an ad in a newspaper that was advertising the opportunity to purchase a portfolio of loans from the FDIC. I bought that first loan package for $13,000 and it wasn’t even my own money. I got that package 100% financed by a bank. I collected $63,000 on that first $13,000 package and made a $50,000 profit. People have been taught to think that they need to have money to make money, and that’s just not so. The reality is – you do need money – but you don’t need YOUR OWN money! I bought over $15 billion worth of bad loans and never put any of my own money up, and neither will you. I show my students how to get 100% financing.

People often ask me what sort of qualifications a person should have to do this sort of work. Well, you really don’t need any experience, and you don’t need a fancy education. You don’t need employees or an office, and you don’t need to use your own money. What you do need is the ability to step outside your comfort zone just a little bit until you’ve been through the process once. I encourage my students to take a small bite out of the apple. If you like it, take another bite. You also need the willingness to stick with it when challenges arise, and spend a few hours per week of your time on your new business.

In conclusion, the perfect storm has lined up for you and me, creating what I believe to be the best home based business opportunity of our time. And, I will teach you how to get 100% financing so the money you invest does not even have to be your own.

About the Author

Bill Bartmann is rapidly becoming the most sought after inspirational/motivational speaker in America and Europe.

Bill is the leading authority on entrepreneurship in America. He has created seven successful businesses in seven different industries, including a $3.5 billion, 3900 employee international company that he started from his kitchen table with a $13,000 loan. He has been named National Entrepreneur Of The Year by NASDAQ, USA Today, Merrill Lynch and the Kauffman Foundation.

Bill is currently teaching everyday investors about a unique home based business opportunity to buy mortgage and credit card loans for pennies on the dollar. For more information and specific examples of how ordinary people are making extraordinary profits using this system, visit http://bartmannbailoutriches.com and view his free webinar interview with Dave Stech.

Dave introduces Bill Bartmann, self made Billionaire, leading authority on buying bad loans and making money during economic downturns, which is exactly what he did during the 80’s. Now he is devoted to teaching other, everyday investors, how to do the same during the current economic meltdown.

This is the first in a series on YouTube. You can visit the channel and view them all here:

http://youtube.com/bartmannbailout/

Seven more banks were closed last Friday (10/23/09) as the avalanche of bank failures this year reached 106, the most in any year since 181 collapsed in all of 1992, during the savings and loan crisis.

Last fall, it was the nation’s biggest banks that faltered, like Citibank and Bank of America, who had made bad bets on complicated, high-risk investments. Now, smaller banks are being undone by something more conventional – real estate, construction and industrial loans – that have gone upside down as developers abandon failing projects, and landlords can’t meet their loan payments. Small and mid-sized banks hold many of these loans and have been hurt more than big banks by the sinking commercial real estate market.

So why is this good for everyday investors? We’ll get to that in a moment.

Hundreds of these banks remain open even though they are as troubled as those that have been closed. The FDIC is closing banks slowly – partly to avoid panic and partly because finding buyers for bad banks is tough. Bank failures have cost the FDIC about $25 billion this year and are expected to cost $100 billion before all is over.

It’s Different than Last time

Compared to the last financial melt down during the savings and loan crisis, this cycle of bank failures has played out very differently. First, the raw numbers of failed banks is lower in this cycle but the asset sizes are much larger and the losses in bad debt are a significantly larger percentage of assets (about 25% in this cycle compared to 11% in the previous cycle).

So far, the bulk of the failed banks have been dealt with by the FDIC selling the entire bank to another bank (a merger, so to speak). In a merger by sale, the FDIC never takes ownership of the assets but merely pays the acquiring bank to take the bad assets since that is the less expensive way to deal with the problem.

So, again you’re thinking, why is this good for everyday investors? Answer: The Legacy loan program, known as PPIP.

The Legacy Securities Public-Private Investment Program. (PPIP)

In July of this year, the US Treasury confirmed the launch of the Legacy Securities Public-Private Investment Program (PPIP). Under this program, the Treasury Dept will invest up to $30 billion of equity and debt to match funds established through private sector fund managers and private investors for the purpose of purchasing “legacy” real estate backed securities; in other words, the mortgage debt inherited from failed banks.

In Sept and Oct, the FDIC put together 2 large deals totaling $5.8 Billion in value based on residential mortgage and construction loans, which we believe to be the first of many such deals. We predict as many as 850 more of the smaller to mid-sized banks will fail and thus, there will be many more assets that the FDIC will have to deal with.

The Good News in the Bad News for Everyday Investors

The good news is that individual investors are being presented with a very unique opportunity – one which may not last long. That opportunity is to partner with eligible fund managers who are getting matching funds from the US Treasury to leverage their investment dollars. Through the PPIP, they can now buy the securities backed by commercial and residential real estate – that were originally rated as AAA – for pennies on the dollar. In other words, these are solid investments with potentially huge ROI. Through investor partnership programs, such as one offered by self-made Billionaire entrepreneur, Bill Bartmann, even smaller investors can capitalize on this unique opportunity.

Watch the free webinar now for further information from an interview with Bill Bartmann and Dave Stech.

How Does the Economic Meltdown Present the Best Investment of 2009?

Perhaps the greatest investment opportunity of our time lies in the current extraordinary volume of charged-off credit cards. Only about two dozen banks actually issue credit cards and they are the large banks we all know – Chase, Citi, BofA, Wells Fargo, and so on. The smaller banks that “issue” credit cards actually do it through the large banks and the small bank never owns the debt.

But these large banks are generating humongous volumes. Based on information from the Federal Reserve, in 2006, the banking industry pushed about $31 billion of charged-off credit cards into the market. That number had been relatively stable for more than 10 years and should pretty much represent the industry capacity. In 2008, the volume went to $59 billion, a 90% increase in two years. At this point the industry is stretched to the limit and the banks are beginning to saturate the network third party agencies. In 2009, the volume of credit card charge-offs is projected to be $105 billion, a 230% increase in 3 years!

It’s this extraordinary volume that makes the opportunity so large as the existing industry can in no way accommodate this volume. Thus, new investors have the opportunity to acquire loans at very attractive prices. In early 2008, prices for fresh charged-off credit cards would have been 10 to 12 cents on the dollar. Today the price is around 5 cents on the dollar.

So here’s the good news/bad news

The economy is not great. Unemployment is high. Bankruptcies are growing. Recovery will likely be slow. All those factors impact the ability to collect and recover on charged-off assets. Thus, the market price for these assets will continue to decline in response to the recovery challenge. All things being equal, I believe the profit opportunity is as great or greater today than ever.

America is on sale and word is getting out. Don’t be the last one to the party. The may be the very best investment opportunity of our time. Don’t miss it!

Watch the webinar now with expert and Billionnaire entrepreneur Bill Bartmann for more information.