Real Estate Investing Basics

Why Today Is the Best Time to Invest in Real Estate

Expertise: Real Estate Investing Basics, Personal Development, Landlording & Rental Properties, Real Estate News & Commentary, Business Management, Flipping Houses, Real Estate Deal Analysis & Advice, Personal Finance, Real Estate Marketing
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Young woman looking over the City of London at sun set.

Today we’re talking about why today is the best time to invest in real estate. Let’s get it started. 

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So, guys, I was once told this: “The best time to buy a house is now, and the best time to sell is never.”

I tell all our investors pretty much the same thing. But what you have to understand is that if a property is not performing well for whatever reason, and sometimes we get that rotten egg property, then you should consider selling out of that asset.

After being in the industry for a while and doing thousands of deals, I have seen investment properties just not perform. Even though it’s the same type of property in the same area and we’ve done everything the same that we always have, for whatever reason that property just does not perform. My advice is to always liquidate and potentially invest the funds in another asset where you might get a better return. 

Real Estate Is Typically a Pretty Safe Investment

If you look at the long-term historical trend of the stock market and real estate prices, they always end up going north. And they always end up going up in value. So I think it’s a pretty safe bet, especially with a brick and mortar asset like a house. People will always need a roof over their heads wherever you’re going to be buying these investment properties.

And in the long run, they eventually will go up in value because of inflation and more demand. 

Related: 27 Ways to Find Real Estate Deals

Now, the caveat to that is when you buy a property, you don’t want to buy at a high price. The number one rule of investing is buy low and sell high.

There are a lot of folks on the East Coast and West Coast of the U.S. where, in my opinion, right now the property prices are just not affordable. And if you invest in such assets, you could get into a lot of trouble.

What Is Your End Goal?

I think it’s very important that every property that you buy is getting you closer to achieving your end goal. So my question to you is: “What is your end goal with real estate investing?”

As in, how much passive income do you want to generate every month to live the life that you want to live and support your loved ones. Then, you work backward from that number.

So if you want $10,000 in passive income per month or $120,000 per year, then every property that you buy to add to your portfolio has to get you a step closer to achieving your goal. 

In essence, there wouldn’t be any point in buying properties anywhere that do not get you closer to achieving your end goal. This would be buying in a market where the prices are too high, the income too low, and the expenses are too high—there is no return on investment. In that instance, there is no point in buying that property.

map with red location markers

Deal Are Out There—Now and Always

Now the world is a big place, and there is always going to be an opportunity somewhere, somehow. I say that because I own properties in the Bahamas, Europe, Japan, and the U.S. I’ve bought a lot of properties all over the world, and there is always a deal to be had. 

Going back to what I originally said, the best time to buy is now and the best time to sell is never. Sometimes you’re not going to find the deals that you want in your backyard. But if you have the knowledge and the courage to expand statewide, nationwide, and worldwide—to hunt for the deals—you’ll find what you want and need. Once again, we’re talking about passive income and the income you need to live the life you want to live.

Related: 4 Must-Haves When Investing in Out-of-State Rental Deals

Do not count on or exclusively invest for any capital appreciation, because in my opinion, that’s speculative. We can’t predict the future. 

Look, where one door closes, another door opens. There may not be a deal in your market, but there’s always a great opportunity out there to be had. It’s just going to come down to your confidence level and courage of wanting to buy out of state or out of the country. 

That’s it. 

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Where are you investing? Why?

I’d love to hear from you in a comment below.

Engelo Rumora, a.k.a."the Real Estate Dingo," quit school at the age of 14 and played professional soccer at the age of 18. From there, he began to invest in real estate. He now owns real estate al...
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    Barry H. Investor from Scottsdale, AZ
    Replied 3 months ago
    ENGELO - Brief and to the point - basic economic discussion. I do remodels in KC, put in a tenant and then sell to investors with my Seller-Financing in Kansas City MO. The Buyer / Borrower makes upwards of 20% ROI annually after all costs (including loan costs). As long as a Borrower / Buyer of one of my properties has a tenant in place, that "stock share" (asset) will always pay a dividend, regardless of the value of the underlying stock (asset). What you said about real estate being a tangible and controllable asset (vs stocks/bonds) is so true - especially in times like this.
    Barbara Mack Investor from West Hartford CT
    Replied 3 months ago
    Interesting strategy, as an investor why would you want to sell as owner financing vs keeping the house tenanted?
    Engelo Rumora Specialist from Toledo, OH
    Replied 3 months ago
    Thanks for your comment mate and well done. Let's see how bad it get's but in every market downturn, the prudent come out stronger and richer. I wish you much success
    David Krulac from Mechanicsburg, Pennsylvania
    Replied 3 months ago
    Engelo, I like Buy and Hold also. I say flipping will make you rich and Buy and Hold will make you wealthy. Flipping profit ends when you stop flipping, Buy and Hold has residual income even after you stop acquiring new property. And if can be multi-generational. But I do like to "thin the herd" every year and getting rid of the poorest performing property and replacing it with a better performing one. David Krulac Bigger Pocket Podcast #82
    Engelo Rumora Specialist from Toledo, OH
    Replied 3 months ago
    Thanks David. In my opinion you can never go wrong with bricks and mortar. Folks will always need a roof over their heads :) Stay safe and much success
    Adama Toh
    Replied 3 months ago
    You are absolutely right. As long as folks will existe then real lestate will continue to be the best to be financially free.
    David Abbate
    Replied 3 months ago
    If you say today (as in 3/23/2020), despite all that is going on and all the economic red flags waving in plain sight, you say this is the best time to invest in Real Estate- You are either a liar or a fool.
    Engelo Rumora Specialist from Toledo, OH
    Replied 3 months ago
    Thanks David, The video is 3-4 months old. With said, now/soon will be a great time to invest in real estate. Stop trolling and start looking for opportunities. Stay safe and I wish you much success