I Just Read That Real Estate Investing Is Dead...

...from a self proclaimed real estate guru

I went through their missive with an open mind

and what I found was that I believe that they are off base

Don't get me wrong

I have some common ground with their views

• The cost of an investment property makes it hard to cashflow on 1st glance
• rental markets are feeling the pressure of inflation in the economy
• and the short term rental market has changed dramatically

A different writing states that Investors are exiting the market at the highest rate in many years

Apparently 11% of all sales in 2024 were investment properties

so while they use that stat to say that investors are bailing out

I can't help but notice that those homes were bought by real estate investors

so is it possible that the most investors in a long time were actively buying in 2024?

It takes 2 to Tango and the fact is that they didnt say what a typicial years % was

If you choose to look at things differently

• you could pay cash for a home and have instant cashflow
• you could put enough $ down when financing to have a positive cashflow
• you have a great opportunity for an increase in property value of 3%-4% annually
• your renter pays down your mortgage balance each month and builds equity for you
• you may be able to write off expenses and use depreciation at tax time

and that's most likely the exact reason that those buyers jumped in at record rates in 2024

its all about how you want to view things

the greatest transfer of wealth has been proven to occur in down markets - not up markets

it sure seems like the smart investors are making moves that others are afraid to make

Today's podcast goes much deeper on how and why