I bought a four-plex building for $530,000.

It was the most valuable possession that I had owned at the time.

Then the building value went down, down, down.

It fell from $530K down to $500K, then $490K, then $480K.

I didn’t know where the price bottom was going to be.

Soon I learned that no one could buy it from me because no one could qualify for a loan.

Everyone was afraid that the market would only fall farther, so no one wanted to buy it from me, even if they could.

I had never experienced this before, and it sure didn’t feel good.

I bought the building in 2007 and the price bottom was the height of the mortgage meltdown and resulting real estate slump of 2009.

Pretty soon, I began to discover that because no one could qualify for mortgages, that meant that people had trouble buying starter homes too.

As a result, my rental demand went through the roof.

Next, I found myself being able to charge more for rent than ever and my four-plex’s occupancy was always 100%.

I started to ask myself: “Why would I WANT to sell this building while it’s paying me better than ever every month I hold onto it, even if it’s temporarily suppressed in value?”

A couple years later, the price rebounded, and I had enjoyed the cash flow all the while.

Lesson learned: buy for cash flow (rent income exceeds monthly property expenses) and the value really doesn’t matter than much!

Thought getting your money to work for you creates wealth? It doesn’t! That’s a myth. My free, wealth-building E-book is now 100% free, 7 Money Myths That Are Killing Your Wealth PotentialGet it here for a limited time.

GET MY FREE EBOOK

7 Money Myths That Are Killing Your Wealth Potential (2017)

Check Your E-Mail For The Book.

Shares
Share This