MINDSET
CHANGING MARKETS
Two Trends toWatch
WHEN THERE IS TURBULENCE, THERE IS OPPORTUNITY FOR WINS—AND LOSSES
by Eddie Wilson
Since I began investing in real estate in 2005, one thing that I have constantly seen is the market shift and the investor shift. While chance is often necessary, be very careful to not fall into the trap of following trends that do not have a long lifespan. The market is going to continue to change and we know that when there is turbulence there is also opportunity. However, when there is turbulence there are also those who lose everything. I am watching many of my peers who got deep into investing in co- working spaces and now are facing the consequences of the pandemic and a large percentage of the workforce choosing to work from home. While investing trends may be worth exploring, do so with caution and informed decision-making. Here are two trends to be extra mindful of before investing:
specialization. Make sure that your investment has a broad opportunity for cashflow. Here are some examples of specialized investment types:
friendly environment. Just because it is cheap real estate does not mean that you should buy it. With widespread rent control laws or states giving huge rights to squatters and vandals, you might want to stick with the states that will give you a fair opportunity for ROI. Please remember that you do not get into real estate to get rich quick. The best real estate investments are long-term, steady, and consistent investments. I am starting to see those who are treating real estate like day trading and making quick jolting decisions and I would implore you to be very careful. There is a fine line of seizing the opportunity and being foolish. •
a. Medical offices b. Senior housing c. Cell towers d. Data centers e. Co-living spaces f.
Industrial distribution
g. Warehousing *I am not saying any of these are poor investments types, but remember when you invest in real estate, it helps with the liability if you can use the space in multiple ways or it is applicable to different tenant types. 2. Out-of-state SFR . Many states are manifesting huge opportunities for very inexpensive single-family real estate. Make sure that if you are buying out of state that you understand the rental laws of that state and the potential hazards for investing in a tenant-friendly environment verses a landlord-
An entrepreneur and visionary by nature, Eddie’s widespread interests have led to successful ventures across
the globe, from operating non-profits and owning an ad agency, to investing in hundreds of real estate projects and building a nationally syndicated radio show. Today, he guides AAPL and Think Realty with his marketing, funding, and real estate investing knowledge to ensure they are the premier organizations in their sectors.
1. Specialization. Due to
competition in markets, many investors are going deep into
96 | think realty magazine :: august 2020
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