What happens if your investments don’t change? post Hurricane tells

Creative Destruction: Thoughts from Anna Maria Island

This past weekend, I celebrated my birthday at one of my favorite spots in the world: Anna Maria Island. It’s in what used to be called the Gulf of Mexico… but after everything I saw, I think we should start calling it the Gulf of America now! Looks like even the gulf had to change! 😄

Anna Maria Island is not just beautiful—it’s also a great example of how communities can bounce back after tough times.

Last year, hurricanes Helene and Milton caused a lot of damage. It was sad to see. But what really impressed me was how strong the people here are. Where there used to be small, colorful wooden houses by the beach, now there are huge four-story mansions with elevators, pools, and terraces—all built following the new rules.

What made me even happier was seeing how busy the area is: workers are back on the job, construction companies are busy, and services like cleaning and tourism are booming. Honestly, I think there’s more activity here than in many other parts of the country. This isn’t just about recovering—it’s about starting fresh and creating new opportunities.

This reminded me of a powerful idea from an economist named Joseph Schumpeter. Back in 1911 in Austria, he came up with the idea of creative destruction. It means that new ideas and inventions often destroy old ways of doing things, making room for better ones. This idea is still true today, especially in the U.S., where the economy is always changing and growing.

What happens if your investments don’t change?

Real estate is going through big changes right now. If your properties don’t keep up, you might face some problems:

• Losing appeal: Old properties that aren’t updated don’t attract buyers or renters like new luxury apartments do. People prefer places with modern designs and cool amenities—even if they cost more.
• Becoming outdated: Some still think buying with a 3.5% down payment is the best way, but that approach isn’t as good anymore.
• Not understanding interest rates: A 7% interest rate today is actually pretty low compared to how things have been. Some wait for rates to drop more, but others are already making smart moves.
• Falling behind or leaving the market: If your investments don’t evolve, you might lose money or have to sell at a bad time. The market won’t wait for you.

Entrepreneurship and adapting are the keys

Creative destruction isn’t a bad thing—it’s how things improve and grow. In real estate, this means updating your strategy, renovating properties, trying new ideas, and accepting that change is necessary.

I won’t lie—the process of adapting can be painful. You can either sit and complain about the changes, or you can embrace them and move forward. The choice is yours.

As an economist, advisor, and investor, I take it seriously to watch the market closely every day. I keep learning, looking for good opportunities, and I always come back to the same truth: Real estate and the services around it remain the safest and smartest way to build wealth and secure your family’s future.

After 20 years in this business, I can say:

👉 Those who adapt, succeed.
👉 Those who change with the times, lead.
👉 And those who invest wisely, build lasting wealth.

What about you?

What changes have you noticed in your investments or market?
Have you had to change your approach?
I’d love to hear your story! Reply to this email or send me a message on LinkedIn or Instagram. Let’s learn from each other and find great opportunities.

Special tip for subscribers

Believe it or not, high returns are not the key right now. The market is going to level out, and your numbers will realign. For now, what really matters is understanding what the market wants and adapting to it.

Invest in properties with extra amenities like pools, security, and shared spaces. These features make properties more attractive and valuable over time, especially in today’s changing market.

Thanks for reading!
Laura Lerma
Economist | Real Estate Broker | Investor