

427: Net Worth Of $10M+ - The 50/50 Split: When The Wealth Elevator Drops a Few Floors & Your Net Worth Drops Drastically
12 snips Oct 6, 2025
Lane Kawaoka, a successful real estate investor and author of The Wealth Elevator, shares his journey in navigating a drastically reduced net worth. He discusses the impact of market shifts and the importance of knowing your financial 'floor.' Lane emphasizes patience and diversification during downturns, while detailing his focus on workforce housing investments. He presents strategies for rebuilding confidence and adapting to changing rates, making this conversation invaluable for anyone in the real estate space.
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Leverage Amplifies Commercial Losses
- Commercial real estate losses amplify because of leverage and short-term loan structures.
- A 20% drop in property value can wipe out nearly 100% of equity when loans are high-leverage.
Don't Sell Under Market Pressure
- If you're not forced to sell, avoid selling during a market dip.
- Hold cash-flowing assets through cycles unless you need liquidity for essentials.
Buyers Leaving Drove Price Drops
- Buyer withdrawal due to high interest rates drove commercial price declines.
- Market prices fall mainly because buyers exit when financing costs spike.