Ken McElroy Show

The Biggest Mistake Real Estate Investors Are Making Right Now

Nov 4, 2025
This discussion dives into the critical importance of focusing on what investors can control, such as strategy and mindset, rather than getting distracted by market noise. Highlights include the risks of making decisions based on headlines and the value of fixed-rate debt for stability. The chat emphasizes viewing real estate as a long-term investment and how to assess cash flow realistically. Additionally, the hosts touch on optimizing purchase prices and the necessity of building strong tenant relationships in today's market.
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INSIGHT

Control What You Can

  • You cannot control macro headlines like the Fed or inflation, but you can control strategy, numbers, and mindset.
  • Focus on controllables to replace prediction with preparation.
ADVICE

Underwrite For Today's Cash Flow

  • Buy properties that cash flow today at today's fixed rates and ignore short-term value swings.
  • If a renter covers the payment and you get cash flow, temporary price drops don't matter.
ANECDOTE

Holding Through A Personal Housing Downturn

  • Ken built his personal home just before the 2007–08 crash and owned it through value swings.
  • He emphasizes that steady payments and a good fixed rate made the temporary equity loss irrelevant.
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