26 Aug Swimming against the current is tough but necessary
Being successful often means swimming against the current. Most of the world’s wealthy have had to make decisions that others didn’t understand or that even got them ridiculed and labeled as “crazy”. Think of Mark Zuckerberg betting on Social Media, Jeff Bezos on online shopping, or Warren Buffet on traditional American companies.
While others may have been running risky yet popular investment schemes, these three successful investors stayed with what they knew, even if it wasn’t popular.
That’s what I did (and am still doing) with real estate. In spite of the 2008 crash, I love real estate because I never focused on what the masses focused on. In other words, I never participated in the house gold rush and never went and bought houses at market value in the hopes to sell them a few weeks later for more money.
To me, that was never a sound investment; that was gambling. Instead, I have always been a purely cash flow investor. Yes, I have flipped quite a few properties, but only if I could buy them way below market value to make sure I have a margin of error and sell close to market value.
And I only did that to generate the cash needed to then invest that into cash flow properties that spit out cash day in and day out.
Now that people are scared of real estate, I say to myself “What better time could there be to invest in cash flow real estate than after a crash, when the prices are low, yet rents are high?” Many people have been shut out of the lending market due to financials or due to having had their house foreclosed on. Now, they need to rent to have a place to live. It’s like a new gold rush, only the masses don’t see it!
Swimming against the current isn’t easy in the moment, but if you have done your research and know that the investment principles are sound, then you shouldn’t let a little negative peer pressure keep you from success.