Nov 08

What does the Twitter IPO mean for MI real estate investors?

Social network Twitter took flight with its long awaited IPO yesterday. So was it another total flop like Facebook, and what does it all mean for Michigan real estate investors?

Twitter must have had its Redbull, because the stock certainly had wings. Taking off and rising almost 100% in the first day of trading the social shares claimed title to the second largest tech IPO in the U.S., beating out Google. The press and analysts were even much kinder than in their review of the Facebook IPO.

Of course the tech stock also dropped out of the sky just as fast, as if shot down by the stars of reality TV’s Duck Dynasty crew, winding up closing below opening price.

So what does this all mean for Michigan real estate investors, Realtors and home buyers?

This is another big wake up call to everyone that tech is definitely in frothy, Icarus territory, floating a little too close to the sun. Stocks in general not only offer pretty much zero protection for investors, but are also extremely volatile with little time to get out before seeing entire portfolios evaporated.

On the bright side this is a big thumbs up to direct real estate investors in MI, signaling that they are definitely on the right path. In contrast Michigan real estate is just beginning a new up cycle which could easily last another 15 years. Direct real estate investment, whether flipping houses or buying rental properties also offers a lot more protection and can deliver both passive income and wealth building simultaneously. That’s in addition to the tax and leverage advantages it offers.

Let’s not beat Twitter up too much though. It might be a cool stock certificate to hang on your wall and show off to the kids. More importantly for MI real estate professionals it can be a great platform for online marketing. With multiple ad and automation options Twitter could be exactly what many need for keeping up business, capitalizing on the end of year rush and being able to enjoy some well-deserved time off.

So love Twitter for what it can do for your real estate business, but stick to investing in brick and mortar Michigan property…