Why It Had NOTHING to Do With Your Investing Strategy
Did you lose a lot of money in real estate during the last down cycle? The answer, in all likelihood, is yes, you did. You didn’t have to!
See why here on my latest Real Estate Market Report
Look – there’s a time to be actively, aggressively involved in real estate, a time to back off, get more conservative… and a time to run away from it as fast as you can… it all depends on the LOCAL market.
Real estate wealth comes only from leverage and appreciation. It does not come from transactional income. Period, end of story. We’ll cover that in a few minutes.
Home values in the U.S. declined $6 TRILLION since early 2007.
That’s an average loss of $45,823 for every apartment, house, condo and town home in the country.
Of course, it all depends on what local market you were invested in. Many investors saw losses of $100,000, $200,000 and more on every property they owned. Many are out of business and bankrupt now because of it.
To give you some perspective, the recent loss in US home values exceeds the total output – the GDP – of every country on earth other than the U.S. If you were to lay six trillion one dollar bills end-to-end, it would stretch all the way to the sun
…then back to the earth
…then back to the sun
…then back to the earth
…then back to the sun
…and back here one more time.
By ANY measure – that’s a lot of money to lose… very, very few people escaped the carnage.
Every publicly traded home builder, developer and real estate investor has been taken apart limb by limb – they’re a skeleton of what they were a few years ago. They had lots of resources and lots of talent – but they all failed to see what was coming and take action.
Now don’t take this as bragging or anything… but I saw it coming. It was impossible to miss.
When market cycles turn red, it’s not just about falling real estate values… The entire food chain gets destroyed.
Buyers disappear. Transactions dry up. Desperation sets in.
Even those Transactional Income strategies stop working.
But…
Before you get too glum about the last down turn, don’t forget what proceeded this big down cycle…
…an even bigger UP cycle!!
If this recent $6 trillion loss is “huge” – and it is… then the $15 trillion up-cycle gain right before it was astronomical.
How big is $15 trillion?
Let me put it this way – a string of 15 trillion dollar bills laid end-to-end would take a beam of light – traveling at 186,000 MILES per Second… over 2 HOURS to reach the end.
Light from the sun only takes about 8 minutes to reach us.
On average, every home, condo, apartment and town home in the U.S. APPRECIATED over $100,000… for one reason… the market.
Once again – your share of that $15 trillion profit depends on where and when you invested. Many markets didn’t participate in that big up-cycle at all. Some markets were pretty flat, and some shot to the moon.
Do you see anything ‘obvious’ that could help make you a ton of money?
Here’s a hint:
…it’s really simple,
… It’s so obvious and simple; you probably won’t get it …
Maybe this next chart will help…
Now do you see it?
Do you see a consistent, repeating pattern that could make you lots of money?
Here’s the answer I was looking for…
Real estate investing is like taking three steps forward, two steps back.
‘Timing’ is everything!
The market giveth and the market taketh away!
Check out this special real estate market report and I’ll show you exactly how you can be the one investor who does not fall prey to the market, but instead cashes in on every high and stays safe on every low.
