FUNDAMENTALS
LESSONS
Real Estate Trends Better Left in the Past
WHAT WE CAN LEARN FROM PAST INDUSTRY MISTAKES CAN SAVE US MILLIONS LATER ON
by Michael Zuber
s most real estate investors know, real estate without ques-
tragic. These falsehoods attract the truly desperate and the people who push them deserve what comes to them. You cannot microwave wealth consistently in real estate. It takes time, daily execution, and a commit- ment to get through the bad days. A few specific trends in real estate that I am happy to see go away are the investing gurus who say bet on “Appreciation” and were fond of repeatedly saying Real Estate Values Only go up. You might be surprised to know that in the last cycle there were teams of people going all over the country saying, “Buy this new prop-
erty in the Midwest and rent it out. Sure, you will lose $200 a month, but heck you have a good job, right? You could afford to lose $200 a month!” The story was these new houses would go up in value faster than you lost money because real estate only goes up. WRONG. These folks not only lost money every month but they also bought a story of new construc- tion in a market that didn’t need it, so they lost as prices fell. Many investors got tired of looking at $200 negative a month when the asset was worth 50 percent less and they just threw in the towel.
A
tion can facilitate financial freedom and wealth creation when done well and consistently over time. I often refer to real estate investing as the “Get Rich For Sure Business” and not the “Get Rich Quick Business.” I like to talk about earning a better financial future first, then financial freedom, and (if you choose) legacy wealth. Having 20 years’ experience in the business I have seen gurus try to turn real estate investing into this “no money down, go to the moon and get rich instantly” story and it is
22 | think realty magazine :: august 2021
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