In this Expert Insight Interview, Willie Mandrell discusses real-estate investing. Willie Mandrell is a self-made multimillionaire real-estate investor, broker, coach, lecturer, and author.
This Expert Insight Interview discusses:
- The state of the real estate market
- Why real estate is the best hedge against inflation
- Why bubbles don’t matter for long-term investors
State of the Market
Right now, the real estate market is really hot, particularly on the residential side. There’s a low supply and high demand, and the prices are skyrocketing. New construction is down, while the price of lumber, inflation and other costs are all going up.
For people looking into getting started with real estate investing, this may not look like a particularly good time on the surface. However, Willie Mandrell believes that it is always a good time to get involved in the real estate market, and there’s always a benefit.
We’re living in inflationary times now, but real estate is the best hedge against inflation. If you’re thinking about sitting on the sidelines, you should know that prices are only going to go up, so if you get in on the action now, you’re going to be able to capture some of that appreciation and ultimately make a profit.
When the market goes in the opposite direction, people want to run away from it, but humans still need a place to live and a roof over their heads. Therefore, if you’re running away from the market, you’ll be renting. In this situation, rentals will be in high demand, and rental prices will go up. So, owning land is always beneficial, one way or another.
Speculating vs Long-Term Investing
Just a couple of decades ago, 6 billion people were living on the planet. Now, the Earth’s population is close to 8 billion, but the planet hasn’t gotten any bigger. The planet hasn’t grown, and cities have nowhere to expand. Because we can’t create any more land, the people who own land are guaranteed to see benefits of either rental prices going up or the value of land appreciation.
This is why it doesn’t really matter whether we’re currently in a bubble or not. The bubble only matters if you’re speculating and jumping into the action short-term just to capture appreciation. If you’re in it for the long haul, time will always be on your side in real estate.
John is the Amazon bestselling author of Winning the Battle for Sales: Lessons on Closing Every Deal from the World’s Greatest Military Victories and Social Upheaval: How to Win at Social Selling. A globally acknowledged Sales & Marketing thought leader, speaker, and strategist. He is CSMO at Pipeliner CRM. In his spare time, John is an avid Martial Artist.