Buncha things goin’ on today, but I wanted to impart a segment of a stellar conversation today. It had to do with the differences between the real estate market (in general) the last 50+ years leading up to around 2006, and what it’s morphed into since then.
For the purposes of this short post there are two major differences.
• The significant trend up in values, regardless of cyclical price drops, are no longer in play. That half century proved reliable as it pertains to values that went higher than the previous peak when recovering from corrections — without exception. Sophisticated strategies often produced superb results. Knowing (or at least assuming) prices would continue onward and upward allowed for relative sophistication.
• Now? Pure vanilla in a plain bowl — not even chocolate sauce. Sophistication? Nowhere to be seen. It’s simply not required, nor would it be any more successful at the bottom line than the boring approach — in fact, it’d likely be worse. We’re back in Grandpa’s day. The sooner real estate investors accept this reality, the better their overall end game results will be.
Now, and in this new market, i.e., there’s no reliably significant appreciation — so no confidence in benefitting from a higher value down the road. This means one thing: The investor needs to stop being so cute with their strategies. Acquiesce to reality and behave as if you’ll never see your property rise in value. If it ever does? Well, extensive research and experience tells me ya won’t be distraught, but what do I know? 
BawldGuy Caveat: DO NOT infer from the adjectives ‘vanilla’ and ‘boring’ that investing in real estate for retirement is therefore easy or simple. Nothing could be further from the truth. You still hafta figure out the right region, state, neighborhood, and specific property(s) — much easier said than done. There’s nothing sophisticated about hitting a 98 mph fastball either, but try doin’ it sometime and find out how easy it is.
Rejoice in the realization that we’re back to the basics, and that they’re not insane. They were crazy the first 37 years of my career. I was like the frog in the ever hotter water. “So far so good . . . So far so good … Holy crap!!”
“Here’re your frog legs sir.”
When the smoke clears, to slaughter the no-metaphor mixing rule, simple is not only easier than sophisticated, it allows for far more control on your end — the investor. This time out, why don’t you be the guy watchin’ the pot boil instead of being the ‘happy’ frog?
A vanilla, boring market? Sure. But tell me you don’t dream of a boringly reliable retirement income that’s magnificently abundant.
Yeah, thought so.
Here’s something else that’s simple — gimme a call at 619 889-7100. We’ll discuss a simple plan for a very cool retirement. Have a good one.
Related posts:
- The Laws of the Physics of Investing — Attention Real Estate Investors
- California Real Estate Investors Using 1031 Exchanges To Turbo Charge Portfolio
- Real Estate Investors — Some Observations
- Real Estate Investors – The Size of Your Retirement Is Limited By the Foundation You Laid
- Sometimes Real Estate Investors Need To Get To Higher Ground
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