Category: Personal Finance

Over the past week, I’ve spent a considerable amount of time diving deep into the real estate market. I’ve always found real estate fascinating—not only because it’s such a core part of our economy, but because it’s a space where smart, informed decisions can make or break financial futures.

As part of this latest round of research, I’ve spoken to regional real estate professionals, reviewed data on upcoming loan resets (including ALT-A, Option ARMs, and commercial mortgages), and even visited a few major markets outside my area to get a more complete picture.

Here’s where I currently stand. Based on what I’ve learned and where I believe the market is headed, these are the moves I would and wouldn’t make when it comes to real estate right now.

(Quick context: I sold my last property in January 2007 and am currently renting.)

Things I Would Do

• 1. If You Don’t Own Property Yet—Keep Renting (For Now)
  We’re still in a market correction phase. If you’re renting and can afford your rent, staying put may be the smartest move in the short to medium term. Buying now—especially in overpriced markets—could expose you to more downside.
• 2. Negotiate a Longer Lease for a Lower Monthly Rent
  Landlords value long-term, reliable tenants. If you’re on a 7- or 12-month lease, consider offering to sign a 15–18-month lease in exchange for a 10–15% rent reduction. Many landlords would rather lock in stability than chase higher short-term profits.
• 3. Wait to Buy—Deals Will Get Better
  If you’re looking to buy, I’d personally wait another 12 to 18 months. Real estate corrections unfold in waves, not weeks. Because of the illiquid nature of the housing market, price declines happen slowly. I believe we’ll see more distressed inventory and motivated sellers over the next couple of years.
• 4. Renegotiate If You Can’t Afford Your Mortgage
  If you own a home that’s becoming unaffordable, don’t wait until you’re in default. Set an in-person appointment with your lender and bring all relevant documents—proof of income, bills, obligations. Make your case honestly. Many banks would rather restructure your loan than foreclose.

Things I Wouldn’t Do

• 1. Don’t Stay in an Overvalued Home Hoping for a Rebound
  If your home is severely overvalued and the monthly payment is unsustainable, don’t sit idle and hope for a market rebound. As of now, the general trajectory of home values is downward, and it may take years before prices recover to recent peaks.
• 2. Don’t Walk Away Without Talking to Your Bank First
  It might be tempting to join the trend of “strategic default,” but abandoning your mortgage without attempting to renegotiate could hurt you down the line. Future laws could hold homeowners accountable, and walking away without trying to restructure may limit your options.
• 3. Don’t Dwell on Mistakes—Learn From Them
  Many people are beating themselves up for overpaying during the real estate boom. If that’s you, try to shift your mindset. Acknowledge the lessons—maybe it was spending more than 30–40% of your income on housing—and focus on making smarter decisions moving forward. Blame doesn’t solve anything. Learning does.

My Take on the Market

In my view, the real estate market will continue to correct over the next 3 to 5 years. Loan resets, tighter credit conditions, and shifts in consumer demand will likely keep pressure on prices. That said, I don’t believe in fear-based decision-making. I believe in informed, intentional action.

If you’re considering your next move whether it’s buying, selling, renegotiating, or simply waiting it helps to have a framework for thinking through the pros and cons.

Let’s Talk

These are just my personal views based on research, conversations, and real-world experience. What’s your situation? Are you planning to buy or sell soon? Are you navigating mortgage challenges? I’d love to hear what strategies you’re using and what you’re seeing in your market.

Let’s keep the conversation going—and make smart moves together.

When it comes to taking control of your financial future, few topics spark more debate or more confusion than debt. We hear about it constantly, yet so few of us are ever taught how to manage it properly. So let’s clear the air and explore a perspective that might challenge conventional wisdom:

Debt isn’t always bad. In fact, when used wisely, debt can be a powerful tool.

But there’s a catch—only when it’s used for the right reasons.

Why Debt Gets a Bad Reputation

Most people focus heavily on the assets side of their personal balance sheet—savings, income, investments—but they rarely give equal attention to their liabilities. This one-sided approach can quickly spiral out of control, especially when monthly payments begin to outpace earnings. When debt becomes an overwhelming portion of your income, you’re no longer in control of your finances. Some call this “financial slavery,” and unfortunately, it’s a common trap.

The core issue? We often use debt to buy things that lose value the moment we buy them.

Productive vs. Non-Productive Debt

Here’s a simple framework that can help guide your financial decisions:

Only use debt when the return on your investment exceeds the cost of the debt—within a reasonable period of time.

That’s it. When debt is used to acquire productive assets—things that generate income, appreciate in value, or support long-term growth—it can actually improve your financial situation.

Let’s take a closer look at examples of productive debt:

• Personal Businesses (LLCs, S-Corps, Partnerships, etc.): Using debt to fund a profitable, scalable business can be a smart move—if you have a solid business plan.
• Investment Accounts: While I personally avoid using margin accounts, investing in diversified portfolios through disciplined contributions (not borrowed money) can create long-term gains.
• Real Estate: When purchased using sound financial metrics (like cash flow, cap rate, and location fundamentals), real estate can be a powerful wealth-building tool—even when leveraged.

These types of debt, when managed well, offer the potential to grow your wealth over time. But the same can’t be said for many everyday purchases.

Where Debt Goes Wrong: Non-Productive Purchases

We run into trouble when we use debt to finance things that don’t produce a return and often depreciate immediately. These are non-productive “assets.”

Here are some examples:

• Boats
• Sports cars
• Lavish vacations
• Designer clothes
• Expensive dinners

These purchases may bring temporary joy—but they drain your finances long after the moment has passed.

Now, there’s nothing inherently wrong with enjoying life. But when your lifestyle is funded by borrowed money, you’re building a financial house on a shaky foundation.

The Real Problem: Confusing Wants with Investments

One major reason for personal financial instability is that many people no longer distinguish between investments and consumption. Debt gets a bad name not because it’s inherently harmful, but because it’s often misused.

Let’s not forget: many large, successful corporations use debt all the time—and do so responsibly. The key difference? They use it to generate returns. So why not apply the same logic to your personal finances?

So, Is Debt Always Bad?

No. Debt can be strategic when used to:

• Fund income-producing assets
• Invest in your personal or professional growth
• Leverage real estate or business ventures responsibly

However, debt becomes a burden when it’s used for short-term gratification with no long-term benefit.

Here’s the takeaway: There is room for productive debt in your life—but non-productive debt needs to go.

Rule #1: Stop Acquiring Non-Productive Debt—Right Now

This is the first and most important step. If it’s not going to grow your income, increase your assets, or improve your long-term stability, you don’t need to finance it.

In my next post, I’ll lay out a simple roadmap to help you eliminate non-productive debt and regain control of your financial future.

A Personal Note

I currently carry no personal debt—and I like it that way. My businesses were “bootstrapped” over time, built slowly and sustainably. But I know entrepreneurs and investors who use debt wisely and profitably. The difference lies in the discipline and intent behind the debt—not the debt itself.