How do "ordinary" people get rich in real estate? They buy 4 or 5 single family homes and hold them until they double in value.
But wait! This article is not about getting rich... this is about you who already have an awesome gain in real estate wealth.
If during
past few years you bought rental homes in or near Los Angeles, Boston, San Diego, Phoenix, Las Vegas or many other cities... you probably have a mountain of wealth hiding in those properties.
In many areas home values have more than doubled in last 5 years making you "ordinary" people rather wealthy.
Gaining wealth is Part #1 of success formula. Part #2 is what too many people fail to work into their plan....
"Hold on to what you've earned!"
All you investors who have fat profits probably should be planning on moving into a defensive position, right now.
If you own 5 homes each valued at $150,000 when you gained control of them... and each is now worth $300,000... you have over $750,000.00 exposed to current dangers of real estate market.
You were smart and you bought low... now it's time to sell high... or at least protect those huge profits.
Real estate values go in cycles. Historically unusually rapid and sustained appreciation is followed by substantial price depreciation. In other words... what goes up comes down.
