Mike's Blog

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Why I love Real Estate

Why I love Real Estate

The recent market gyrations have me remembering why it is I got into RE in the first place. Throughout the nineties I was an active investor in the stock market. I also bought various rental properties. Most were small 2 and 3 bed residential properties. The mortgage payments were low and I was able to clear $200-300 cash flow per property. It was slow going but the payments were there every month.

During this time I was socking alot more away in the Nasdaq that I was in RE. I looked like a genius throughout the late nineties- increasing the value of my portfolio nearly 300% over a period of a few years. Then 2000 came...and well we know what happened to the Nasdaq then.

I lost more money in a few months that I could have ever imagined. Why..because I got greedy and went for the quick buck. Appreciation was all I worried about. Meanwhile- my rentals were holding their value...appreciating some...and providing positive cashflow every month. My boring safe investments became my new best friends.

I learned a tremendous lesson from this experience. I swore to myself I would never allow myself to be duped into believing cash flow doesn't matter. After 2000, I went fulltime into RE. Over the next few years I would pick up numerous more rental properties. All providing a boring but steady rate of return. Sure I have some cash in the stock market- but nearly as much as before. I'm convinced the stock market for the most part is nothing more than glorified gambling. In RE...I , for the most part, control my investments value. I can't do that with stock.

So this past week's volatility has reminded me why I do what I do. And why it is I still believe, despite the problems with the RE market, that RE is the very best investment vehicle for long term wealth generation.

Mike Hogan

Associate Broker

RE/MAX Commonwealth

(804)503-0811

RVARealtor1@gmail.com

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Comment balloon 2 commentsMike Hogan • October 13 2008 08:26PM

Comments

Sorry about 2000, but I think this is a better vehicle for now.  It's time to BUY!

Posted by Randall Schrader (Competitive Insurance of Dundee) almost 10 years ago

Mike,

As you learned there is nothing boring about "steady Eddy"....promise you that there will be money in the bank when you decide to sell those puppies.

See I was like you, focused on something, but not bright enough to play the market (and didn't want to learn)...so, I stuck with what I know...real estate.  All my friends back then were telling me, sell your houses and invest in the market and I didn't !!  I guarantee they are the one's crying now.

Posted by Sheila Moran, SanAntonioSheila.com, RE/MAX Access, 210-32 (RE/MAX Access (Garden Ridge, San Antonio, New Braunfels)) almost 10 years ago

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