Please- LONG TIME multiple decade USA Real Estate investors please fill in the wide eyed younger newbies on what dips, crashes, and corrections were like.

I want to give wisdom to the younger folks. I bought my first home 25 years ago. I have enjoyed Real Estate investing for multiple decades……

I just want to share memories because people are still rushing in:

1990s early—- my best friends family two doors down were scandalized by Rodney King Riots and placed their home up for $319,000…. turned down $279 offer. Sold for $242,000 TWO YEARS LATER.

2006 — Home frenzy. People were paying $10,000 loan mania as a fee to break their loan early and borrow more money. You could sign on a three phase development with a big builder and get a pre construction loan. By the time the 3rd building was finished the buyers on the first building could have $500,000 equity and nothing was started or finished.

The whole country was in Real Estate mania.
People were pulling out their life savings to put as downpayments on multiple properties. $100,000 lift in two years was normal.

2008— It all came crashing down hard. No loans to anyone unless you worked for the government. They wouldn't accept self employed, pension, retirement, or dividend incomes. The banks were short selling. Things crashed down 60% in many spots. I met people who lost $3m+ portfolios.

I met several people that were upside down on their home and stuck living there or walked away.

My own brother did a short sale and gave back a $450,000 Antique hone with astronomical gas heating bills.

He got back into the market two years later and has several homes now.

Please warn these people that think it will go up forever.

My favorite stories are Covid with renters not paying. In one area the City Council almost voted to stop all rents for three years because of unaffordable housing.

My uncle had his homes in 2003 burn down. They were never able to rebuild.