Much of investing is subject to gross generalizations and sweeping statements—usually stressing the positives, because of humans’ tendency toward greed and wishful thinking—and for some reason this seems particularly true in real estate. Over the course of my career I’ve heard investment in real estate rationalized by easily digested statements like “they’re not making any more” (in connection with land), “you can always live in it” (in connection with houses), and “it’s a hedge against inflation” (in connection with properties of all types). What people eventually learn is that regardless of
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