That's awesome, always great to learn from someone who has experience and skin in the game, I no zero about real estate.
So if the hedge fund guys are squeezing you out of markets, would real estate investors now look at say outside into the suburbs, lower-income neighbourhoods pushing more gentrification, and then foreign real estate? So guys on your level bid up prices in other markets/less efficient/less competitive markets?
I mean surely if this continues you lift the floor on buyers especially first time buyers to get in and kill off demand? Or will there be 50/60/100 year mortgages issued in the future? Surely there has to be a point where the music stops.
@chekohler I love that you used that expression, "when the music stops". It's something my mentor always tells me. He says, "you have to make sure you have a chair when the music stops" and what he is saying is exactly what you are addressing.
I've always operated in "gateway/depressed" cities, because it's what I know and there is a real reward to fixing up old buildings and giving neighborhoods a facelift and improved living conditions for residents.
I absolutely agree that there is a fine line to how long a market will actually need us as investors. Eventually everything is fixed up and we are forced to find new markets OR we stick to our current markets and get into the gentrification game IF there are jobs in the city to support "gentrification". Not all cities can be gentrified and it's important to remember that RE Investors aren't the deciding factor in gentrification, we are just the effect. Jobs and schools are what drive gentrification. The more jobs you have in an area the more people want to be there and the higher prices go up on rents and housing.
It's the herd mentality and human nature to chase the money. As a Real Estate investor it's your opportunity that is built when you can see a migration pattern and get there in time to help support the newly desired housing.
To your point though, yes, sadly the wealth gap is getting larger and larger, but that is very specifically a function of jobs and technology. There are less and less desirable jobs AND the large corporations no longer need to hire as many people as they did when robots and computers didn't exist. There is a great book on the subject called, "Rise Of The Robots" that gives some real insight into the future of economics, jobs and crypto currencies as well as a small glimpse of real estate.
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