Greg Rand, a 20-year real estate veteran and CEO of OwnAmerica, says now is the time to invest in real estate.
Rand compares the current market to the years following the Great Depression when market conditions sparked a boom that sustained 65 years of appreciation in real estate.
“This economic crisis, while similar to the Great Depression, is also unique in the way that the housing market played a central role,” Rand said. “It is true that this is a once-in-a-generation crisis. It is also true that this is a once-in-a-generation opportunity. It’s time to focus on the other side of the coin.”
According to Rand, a little optimism can go a long way toward spurring real estate back to life.
“There is a very real economic force called irrational pessimism that is the cause of much economic hardship, not the effect,” he said.
“More people are unemployed because successful businesses are afraid to expand. More people are losing homes they can afford because they are underwater and believe their home will never appreciate again. People with job security are convinced they don’t have it and live in fear,” Rand explained.
He insists, “Irrational pessimism is one reason why today’s situation runs so parallel to the Great Depression.”
Rand contends there is no housing meltdown. Rather, there was a media and Wall Street meltdown centered on a predictable housing correction.
The real estate market changes hourly, he says, and investing in real estate is a matter of watching the trends.
“It comes down to the idea that no matter how the markets change, no matter which way the winds shift, people will always need a place to live,” Rand said. “That’s been true of America since the first log cabin.
“If you plug into that concept and leave fear in a box on the shelf, you can be ahead of the curve and ride the wave of the trends that matter,” according to Rand.
OwnAmerica is a Web-based resource for real estate investors and investment advisors headquartered in New York.
Rand is also on WABC Radio, a regular commentator on the Fox Business network, a columnist for Real Estate magazine, and author of the book “Crash-Boom” from Career Press.