In 2006 I was listening to some local talk radio show when the guest speaker said, ‘I’ve sold my home and moved into an apartment, the market is going to crash and I want out.” I thought this dude was a real fool.
Turns out he was not – I was the fool. I stuck in there with all my properties and suffered for years until the prices came back too close to where I purchased the homes in 2006. It took only 15 years! Now I am out and just have the primary, but is still remember the talk show from 2006 that still haunts me, sell your primary, and move into a rental.
Is history repeating itself? Are we heading for another crash? Some are saying that this time, it is going to be the mother of all crashes, greater than 2006. Somehow, I get the feeling (at 3 AM every night) that there may be some truth to this.
If I would have sold everything in 2006, I would have had a boatload of moola, put it in the bank, and took a 7-8 year vacation. If I put the boatload of moola into the stock market, or heck bitcoin or gold I could have lived a rich man’s life for years. But no. I suffered for 15 years with rental homes and got out. I did not lose any money and came out way ahead. But now what? Sell the primary and move into an apartment? Are you crazy?
The reason I did not sell the primary in 2006 was that I was afraid of:
I would never be able to get back in. If homes keep going up and up, then in a few years it’s going to cost millions to purchase. Better buy now before you cannot. If you do not get in, you going to get screwed. Look at the price going up and up. If you rent, you are going to be a renter forever. You are going to be a loser dude.
These are the same thoughts I have now in 2021.
The value of the home, over the past 12 months has skyrocketed. It is up to a point where I wonder who would pay that much money for that little ranch home? And if it sold it, what would I do with the moola? What are the tax consequences for selling and renting? Also, what are you going to do with all that stuff in the house?
It would not be a problem selling. I have seen hot markets in the past, but nothing like this. All I must do is say, ‘I think I am going to sell’, and there would be a flood of offers. Would not have to even list the home. (LOL, If you’re reading this I’m not selling, maybe, could be, so don’t call me, and yes, I’m a licensed agent.)
So, what should I do? Sell the primary, then what?
This time around I am not going to sell the primary. The reasons are:
So, this time around, even though I think we are in for a mother of great rest, I am not selling. Going to ride it out, hunker down, stock up food, and buy ammo. Will this be a mistake? Do not know, but it is just my primary, what could go wrong? After all, banks do not crash, and stock markets do not crash, we will not go into a war, interest rates will never go up. Democrats have it all under control.
So tonight, at 3 AM I not going to wake up in a panic, hopefully.
Level 4 Funding LLC
Who is this Dude? Dennis brings with him substantial experience in residential real estate. Dennis has extensive experience purchasing, renting, and selling numerous homes over the past 45 years. His first purchase was a property in California when he was 18 years old. Dennis graduated from California State University Pomona with majors in Computer Science and Business Management. He is a Licensed Mortgage Broker, Licensed Mortgage Originator, Licensed Real Estate Agent, Licensed Insurance Agent, Certified Sort Sales Specialist (CSS), Certified Negotiator (CNE), and FAA Licensed Private Pilot.