The 1929 stock market crash was mostly fueled by excessive speculation. The Savings and Loan debacle of the 1980's was too. As was the 2008-9 Great Recession. Whenever investors rush into something with irrational exuberance, especially small investors trying to reap quick profits and join in on the party, beware!

Many who invested in the booming investment aspect of real estate, hoping for quicker short-term gains, are discovering this reality all over again. Many property syndicates that raised millions to invest in commercial real estate at super-low rates assuming rents would rise and rates would remain low forever are experiencing pain. Some are defaulting. And many investors are hurting. Both large investors who are much more capable of weathering storms and taking big losses, and small ones too. Buying at the right time and at the right price is invaluable. Being in a position to hold on and weather big storms is something many forget. They also forget that sometimes greed or blind optimism can cloud your judgement as it relates to when to sell.