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With the stock market hitting all time highs week in and week out, and the housing market taking a hit, many people are thinking about selling the real estate they have invested in and buying stock. This article in today’s USA Today talks about how the pendulum has swung back from where we were five years ago when everyone was selling stock to buy investment real estate.

What do I say? Let’s start out with the understanding that I think you should diversify your investments and a healthy stock portfolio is not a bad idea in addition to your real estate holdings. I do think, however, that if you have waited until now to sell your real estate holdings when they are in a decline price wise in favor of buying stocks that are in an all time high you are behind the curve. The stock market seems to be healthy right now and if you buy in you can make money, however you are selling low and buying high.

Large real estate investors that follow these trends very close are salivating at the prospect that the USA Today article is what people will do. After all if there is $150 million in real estate holdings sold, somebody bought them and probably for a discount. Just like with any investment the idea with real estate investing is to buy low and sell high, maximizing your income potential. In Northwest Arkansas we are lucky because as we have said many times we are pulling through the correction and recovery faster than in other markets, however there is still an oversupply which means if you sell off your real estate now you may be selling too low as compared with holding for another year or two.

This is of course a broad generalization and I believe that in many markets and for many types of property could sell now for a maximum value (sell high) but instead of rolling that into the stock market (buy high) you could let me help you find other real estate holdings (buy low) that could end up putting you ahead of the curve.