Dani Lynn Robison explains how investors who couldn't sell real estate deals during the 2020 crash actually made more money than those who could. Locked-in investors kept collecting cash distributions while stock sellers took losses and missed the rebound. Forced illiquidity turned out to be an advantage.
What if I told you that not being able to sell your investment actually made people more money? In March 2020, the stock market crashed 34% in a few weeks. Millions of people saw their accounts drop and did what they felt right. They sold. They locked in the loss. Then they watched the market bounce back without them. But people who had money in real estate deals, they couldn't sell. The deal wasn't done. There was no button to press. So they stayed in. They kept getting their monthly or quarterly checks, and they rode it out. And when the deal eventually closed, they came out fine. Being forced to stay in wasn't a bug. It was the whole point. Sometimes the best investment decision is the one you can't undo.
Physicians and High Earners — What Real Estate Can and Can't Do for Your Taxes
