Going Through Withdrawals
Episode description
A lot of my friends are real estate investors. They love it; they have a true passion for investing in real estate. Some flip homes for short-term profits and others are buy-and-hold long-term investors.
Personally, I think sometimes this zeal and/or passion can distract one from realizing why they invest in real estate. In the past, when I’ve inquired, I would get answers like:
“I love real property – you can see it, feel it, touch it – it’s tangible”
Or
“The leverage makes a big difference. The fact that I can put 25% or 30% down and the bank will cover the rest is amazing”
Or
“My parents bought this property for $75,000 originally, and now it’s worth north of $500,000 – it seems like real estate just always goes up”
Yes, all of these beliefs and experiences do paint the picture of their affinity for investing in real estate, but I think people rarely articulate the REAL or primary reason. Humans hate uncertainty; people despise the fact that they don’t know what the future has in store for them. Investors also know that they will never really have the benefit of knowing the future, so they settle for the next best thing – something predictable and reliable, something they can count on.
Links mentioned in this episode: