I have been through 3 real estate cycles. I have seen manias where everyone had to buy real estate ( almost like now) and times where you could stand on your head and not give real estate away.
I have been traveling but thought to put in my 2 cents on how to survive real estates inevitable challenges.
- Under leverage. Right now with interest rates historically low, this might seem foolish. However interest rates can and some point spike. I always watch the US 10 year bond as an indication. It has moved dramatically since Trumps election. However it might stop going up..No one knows, however pay attention to it and under leverage.
- Do not give up. Persevere! Quitting is easy! I don’t know if you know this or not, but there is a lot of headache and learning that comes with real estate investing. There is really no way to become ultra-successful as a real estate investor without screwing up probably quite a bit. Screwing up in real estate usually means you are losing money. Losing money does a number on one’s psyche. And if losing money isn’t the current issue, you’re probably still dealing with some kind of absurd level of headache — at least, intermittent headache.
- All properties will involve, at some point, evictions, challenging tenants, delayed payments, high repair costs and the ever unknown challenge! No way to avoid this. All part of the game!
- Learn from every mistake
- Read and surround yourself around other successful investors
- Forget the emotions and the drama.
My two cents…Please add your thoughts…
Recent Comments