Day Trading Versus Real Estate Investing

Day Trading Versus Real Estate Investing
Question: What was the fastest deal (over $2M) you ever closed and how did it end up one year later? Did speed lead to your greatest success or have you falling on your own sword some months after closing?

Why am I writing about day trading when my profession is multifamily real estate? Because many of the same mistakes occur in both professions.

Minute by minute investing is a part of daily life now for many people (sometimes by the nano-second). Day trading for John Q Public started several years ago with the advent of the internet. It became so prevalent that even Charles Schwab had offices converted to use by day traders.

It is in the same category as hawking "nothing down" real estate to the masses. Sure, it can be done, but how does a person that makes widgets by day measure the risk of investing in real estate by night, as a hobby?

Notice that almost anytime the federal government attempts to do something quickly the results are perilous. I am excluding examples here to avoid politicizing the question except to say whether its war or distribution of vaccines, we probably want our government to act assuredly, not quickly.

The same holds true for investing in multifamily real estate. As a full-time professional, there are "deals" that come to my attention every day. One or two, in the course of a year, requires fast action.

Whether multifamily real estate or day trading, take the necessary time to learn the craft. One hundred hours of training will save you one thousand hours of heartache.
Let's get linked: http://www.linkedin.com/in/johnwilhoit

About This Blog
Multifamily Insight is dedicated to assisting current and future multifamily property owners, operators and investors in executing specific tasks that allow multifamily assets to operate at their highest level of efficiency. We discuss real world issues in multifamily management and acquisitions. This blog is intended to be informational only and does not provide legal, financial or accounting advice. Seek professional counsel. We discuss best practices in multifamily management and methods related to how to buy apartment complexes. Our focus is sharing strategies and tactics that can be implemented and measured. For more information, visit: www.MultifamilyInsight.com

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