Investors are selling their real estate because...

Investors are selling their real estate because...

Houston, TX · Member since 2008 · 15 posts · 0 votes

I have an open-ended question, but I will throw it out there anyway.  My wife was surfing the internet and saw a page with the title "Investors are selling their real estate because...".  She did read the article, and she could not find it again.  Now, she has tasked me with finding it, but I have had no luck.  My hunch is that the article was about some type of government action, IRS or otherwise, that is scaring investors into selling off real estate investments.

So my question is, "Are there any recent and notable government actions that would cause real estate investors to panic into selling off their properties?".

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Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
3y
Quote from @Rob Evans:

So my question is, "Are there any recent and notable government actions that would cause real estate investors to panic into selling off their properties?".

 Not that I know of. 

Some of us sold because we've been doing it a long time and were tired, values and interest rates were high while cap rates were about even with the 2yr treasury yield. 

The work RE requires better earn a premium far above hassle-free treasury yields. Time to find a chair. 

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  • Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    3y
    Quote from @Rob Evans:

    So my question is, "Are there any recent and notable government actions that would cause real estate investors to panic into selling off their properties?".

     Not that I know of. 

    Some of us sold because we've been doing it a long time and were tired, values and interest rates were high while cap rates were about even with the 2yr treasury yield. 

    The work RE requires better earn a premium far above hassle-free treasury yields. Time to find a chair. 

  • Andrew FreedBusiness Member
    Investor · Worcester, MA · Member since 2020 · 1k+ posts · 1k+ votes
    3y

    @Steve Vaughan - You sure are right about that. RE is definitely not passive. It requires work to obtain your desired return. I can see why landlords get tired and want to transition into easier assets. 

    As far as the reason why real estate investors are selling, that is a very obvious question. Many landlords sell because they are tired of being landlords, have made their wealth and are looking to transition it into more passive investments, e.g. annuities or stocks, partnerships gone wrong etc. The list goes on and on. You can literally google this and a million articles populate on why landlords sell. Honestly, it sounds like you are just looking for reasons to buy. Real estate is always a good investment if you buy right with the right return profile and lock in fixed debt.

  • Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    Investors are selling their real estate because... they paid too much for it and did not follow basic fundamentals. 

  • Jared HottleBusiness Member
    Real Estate Agent · Cedar falls IA Waterloo, IA · Member since 2020 · 902 posts · 549 votes
    3y
    Quote from @Steve Vaughan:
    Quote from @Rob Evans:

    So my question is, "Are there any recent and notable government actions that would cause real estate investors to panic into selling off their properties?".

     Not that I know of. 

    Some of us sold because we've been doing it a long time and were tired, values and interest rates were high while cap rates were about even with the 2yr treasury yield. 

    The work RE requires better earn a premium far above hassle-free treasury yields. Time to find a chair. 

    Saw this alot last year with older investors and they were shocked what their properties went for. Was a good time to exit if you had been in awhile. As the saying goes the best time to plant a tree was 20 years ago or today and a lot of them grew some nice trees. Excited for my time in the market now!
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