The U.S. real estate market is surging. News headlines say that:
- Existing-home sales in January grew 23.7% to an annual rate of 6.69 million, compared with a year ago.
- The median existing-home sales price rose to $303,900, up 14.1% in one year.
- Housing inventory fell to a record-low 1.04 million units, down 25.7% year-over-year as of January 31.
- Mortgage rates rose above 3%, the highest since July.
What should real estate investors do now?
Most investors learn how to navigate changing markets from real estate gurus or from the School of Hard Knocks. For over a decade, I’ve learned from both approaches.
I must admit, early on I made many mistakes learning to invest in real estate. It took years and years to build a successful business.
Looking back on my experiences and others’, a distinct pattern emerges. People hear about a new real estate guru’s method, get excited, sign up, and start taking training courses. The courses cost thousands of dollars, not to speak of your valuable time.
Then you try to apply what you learned from gurus in the real world. But the real world is messy. It never quite works out the way a guru predicted. Your investments fail.
So you pick yourself up. You find another guru, take more training, make new investments.
You can get trained again and again with the same result.
Most real estate investors continuously shift their strategies in changing markets, seeking a system that really works. But in the meantime, they spend down way too much investment capital on training.
If you feel trapped in a loop of new gurus, hope and despair, take another path. You don’t need to learn from your mistakes – you can learn from mine.
By avoiding the mistakes I made, you start in a much better position – with more capital to invest and higher odds of success.
Maybe you don’t need a guru, you need a guide
Find someone who knows your local markets, applies deep experience, and helps you make better decisions in real time, not in some idealized market of the past.
I learned 4 critical lessons about investing in real estate the hard way:
- Stay aware of the real estate cycle. Buy at the bottom, not the top.
- Get a guide or an education before you make any investment.
- If you’re fully employed, it’s a big mistake to try to be an active investor. Why? Because this work takes at least 10 hours a week – more time than most busy professionals can afford.
- Always buy local rental properties, so you can keep an eye on them yourself.
Looking back on all the challenges and cross-currents that hit me as a real estate investor, I have one wish.
I wish I had had a guide. If I had invested with a guide from the start, I would have made better decisions all along.
Not having a guide was my biggest mistake. It’s the reason why I decided to become a real estate guide – so that you will never have to go through everything I endured.
Alvernia offers a simple, practical way to invest in real estate.
It’s based on best practices from top investors and deep knowledge of local Nashville-area markets.
We invest in rebuilding reasonably priced neighborhoods, without displacing deserving residents. By creating more affordable housing, we rebuild communities and build opportunities for investors like you.
When you’re ready to stop the guru runaround, give me a call at 855-494-6777.
Or write me at FreedomDoc@AlverniaCM.com.