Can You Make a Fortune Shorting Real Estate?

June 22, 2022

By Dawn Pfaff, Host of Go Home TV & President of My State MLS

Is it possible to make a fortune shorting real estate? A YouTuber named Vlad #Biaheza posted a video about shorting real estate, and in two days, he had over 165,000 views on that video.

I guess I wasn't the only one who wanted to figure out how to short real estate. He explained the current situation in real estate and how the market has gone way up. 

And now with rising interest rates, he is betting it will come all the way down.

He makes you wait all the way to the end of the video until he tells you that you can't short real estate, but you can short real estate stocks.

And that was his plan. He mentions an ETF (Exchange Traded Fund) called DRV that he's going to buy from Robinhood and he does say that it's extremely dangerous to do. 

We'd love it if Vlad Biaheza would like to talk about it on Go Home TV!

I had to look into this to see if it was worth doing. It's a gamble, a huge risk. Sure. This year people have made over 30% year-to-date.

But over the last five years, you've pretty much lost your shirt. Even a year ago, if you invested in this stock, you'd still be down 30%, even with this year's earnings.

There's a lot of advice on the Internet. But I've got to tell you, if you think you're going to make a fortune shorting real estate, think again, because we don't know what's going to happen with the real estate market.

It could go up. It could go down. But we're not sure right now. I mean, yeah. Does it look like it's going to go down or soften? Yes, of course it does, because interest rates went up and people are talking about the housing bubble. And that's all happening right now.

But be careful because this is not 2008. We still have a lot of loans out there that are really affordable for people that they took when they bought their home, which was not the case in 2008.

But right now, we have a shortage of homes, a huge shortage of homes, and we still have a lot of people who need a place to live. There's not a lot of rentals out there. Rents are very high.So I would be very cautious if you were going to bet against the real estate market right now.

Related Topics:

real estate investing
real estate investment
mortgage rates

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