Morgan Stanley recently called homeowners “strong hands” in the real estate market. Strong hands refer to those with the financial means and capacity to hold onto their assets long-term. They withstand market volatility and downturns.

When we talk about what makes a property an ideal rental, we often end up citing factors around the property rather than the qualities of the house itself. Things like location and proximity to amenities are of utmost importance – but it doesn’t mean any ol’ property in a good location will make a good rental.

In the sea of real estate investment asset types and strategies, two tend to pique the public’s interest more than others: short-term and long-term rentals. But how do these two stack up against one another?

What does it take to succeed in real estate investment? We’re sure you can think of plenty of skills and qualities. Honestly, so can we! But we want to boil it down to the essentials. Remember, hope is not lost if you’re not exceptionally skilled in these areas. Anyone can hone and enhance these skills to fuel their effectiveness as a real estate investor. And, for simplicity’s sake, we’re mainly referring to buy-and-hold SFR investing.

While these qualities apply on a broader scale, that’s the context we’re operating in, so that’s the kind of investing we’re speaking into!

Here are the skills you need to master:

In the information age, misinformation is a big problem. Plenty of people say whatever it takes to earn a buck, stir up controversy, or gain notoriety. It’s no different in the crowded world of financial and investment content. Take a look, and you’ll find your fair share of financial gurus offering empty, inactionable advice. And from people like that come plenty of myths…namely about earning passive income!

Every parent wants to see their child better off than they were. Setting our children up for financial success involves more than what we leave them in the will. It’s what we teach them – how to steward, grow, and preserve their wealth.

As the real estate market cools and potentially slides into a downturn (which is natural and not the same as a crash, mind you), investors must examine their risk exposure. New data from ATTOM shows that Southern and Midwestern markets are at the least risk for a serious downturn overall.

2020 turned the real estate market as we know it on its head. While the fundamental rules of the business stayed the same, there’s no denying that the housing market reacted unpredictably. That’s not surprising in light of the uncharted territory of a global pandemic.

By nature, real estate investing isn’t a particularly speculative investment. While the level of speculation varies among investment strategies, real estate will always be more sure (and secure!) than betting on the stocks of unproven start-ups. At the same time, real estate investors may fall into speculative habits – habits that ultimately increase risk.

This year, you might have heard some discouraging things about the real estate market. Naysayers have debated the feasibility of SFR investing when real estate prices are at an all-time high. Various legislative efforts might change the real estate landscape. Here’s the thing – it’s not that real estate investing is a bad idea. It’s more about perspective.