Real estate cycles, both up and down, are nothing new. Every investor who has been successful enough to stay in business for a while has experienced them. Real estate cycles create winners and losers alike. The secret to survival is learning how to surf or stay afloat. If you’ve ever watched surfers you can’t help notice how they roll with the waves. Good surfers are not toppled by even the most treacherous waves. They even look forward to experiencing the thrill of meeting them head-on.
Real estate investors can prepare themselves for treacherous times just like surfers. They can do this with new experiences and by continuing their education. When you are knowledgeable about what you’re doing and have the confidence that comes with that knowledge, doom and gloom predictors will have very little effect on your investment strategy.
“You might as well realize that the time for opportunity is past. There’s no longer any use trying to save for investing. The best you can hope for is to keep a steady job and stay off welfare. Nobody will ever again be able to build an estate big enough to produce an independent income. “Those are the words from a senior economics professor at a prestigious California University. During the 1929 depression – he was totally wrong then, and total wrong now.
The world is full of “Chicken Littlies” who are always telling whoever will listen that the sky will surely fall by a particular date that they pick. I’ve yet to see even a small piece of blue sky lying on the ground. As to the economics professor and his gloomy forecast about future opportunities, let me just say that he’s the kind of educator who can keep an entire graduating class working their buns off at Burger King.