Don't put all your (real estate) Eggs in one Basket!

Don't put all your eggs in one basket!

We have all heard this sasying from our parents since we were young.

However, when it comes to investing, especially in real estate, especially in today's real estate market here in metro Phoenix, Scottsdale, Fountain Hills and the East Valley this could be one of the most important things we were taught.

Many real estate investors will buy their primary residence, a rental property or more, and even a "fix n flip" speculative home investment all within a small geographic radius. Investing 101 will tell you this can be a risky strategy. Of course, as the market rises, all things real estate prices rise with the tide.

However, as we have seen lately, the opposite holds equally true.

A close friend of mine, who has made a fortune in real estate, in high-flying markets and has protected himself against losses in housing declines, reminds me every Easter (his favorite holiday , I might add) , "Don't put all your eggs in one basket! " , especially, when it comes to real estate.

He offered these 3 tips and when I am done finding Easter eggs with my nephew Sam (once in a awhile, I will even let him find it before I grab it)

1) Make sure that your primary residence is not an investment

2) A rental property must be rented or it can be a very expensive

3) Speculative Investing has to be done prudently and not in your "backyard".

stay tuned, I will explain these 3 points in greater detail later tonight....

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Copyright © James Wexler, *Don't put all your (real estate) Eggs in one Basket*