I’ve seen the hype happen.
It happened right before the last downturn in 2007-08.
I see so many people getting worked up in the rise of the market right now because everybody’s doing real estate.
I see it every time we have a market cycle, and I’ve been doing this for almost four decades.
Everybody’s into real estate. Everybody’s selling real estate.
But people that are getting into it for the first time don’t know where to buy, how to buy, or who to buy from.
So they strike out on their own, and many times, they make bad purchases at the height of the market.
No one remembers that there has always been a market cycle.
They pay top-dollar retail and then get stuck with properties that they can’t unload. They don’t know what markets to be in.
Here’s the problem: There are a lot of real estate promoters out there who are taking advantage of the market.
They’re selling turnkey properties which they pick up, rehab, put a tenant in them, then claim to have great back-end management.
First, you’re paying super high retail for those properties. Second, the management is almost always awful.
These promoters sell you on the front end, then hand you over to a back-end management company that doesn’t give a flip.
But it doesn’t stop there. Many times, the promoters bring a tag-along team of attorneys who will sell you the complete entity protection package.
They’ll set you up with multiple LLCs and/or set up your self-directed IRAs like solo 401k plans.
I’ve seen those become a mess. It’s an absolute nightmare.
The cost. The administration. And then people don’t even know what to do with them.
This is why you’ve got to be really, really careful. A lot of people are the wrong people.
Herein lies the key: Find the right people. Who are the right people? People who don’t have their own agenda with your money.
They’re the people who are really trying to help you figure out the right way to build wealth… for you.
So watch out, be careful, and don’t get caught up in the hype.