Should You Invest in Real Estate Right Now?

Should You Invest in Real Estate Right Now?

3 min read
Brandon Turner

Brandon Turner is an active real estate investor, entrepreneur, writer, and podcaster. He is a nationally recognized leader in the real estate education space and has taught millions of people how to find, finance, and manage real estate investments.

Experience
Brandon began buying rental properties and flipping houses at the age of 21. He started with a single family home, where he rented out the bedrooms, but quickly moved on to a duplex, where he lived in half and rented out the other half.

From there, Brandon began buying both single family and multifamily rental properties, as well as fix and flipping single family homes in Washington state. Later, he expanded to larger apartments and mobile home parks across the country.

Today, Brandon is the managing member at Open Door Capital, where he raises money to purchase and turn around large mobile home parks and apartment complexes. He owns nearly 300 units across four states.

In addition to real estate investing experience, Brandon is also a best-selling author, having published four full-length non-fiction books, two e-books, and two personal development daily success journals. He has sold more than 400,000 books worldwide. His top-selling title, The Book on Rental Property Investing, is consistently ranked in the top 50 of all business books in the world on Amazon.com, having also garnered nearly 700 five-star reviews on the Amazon platform.

In addition to books, Brandon also publishes regular audio and video content that reaches millions each year. His videos on YouTube have been watched cumulatively more than 10,000,000 times, and the podcast he hosts weekly, the BiggerPockets Podcast, is the top-ranked real estate podcast in the world, with more than 75,000,000 downloads over 350 unique episodes. The show also has over 10,000 five-star reviews in iTunes and is consistently in the top 10 of all business podcasts on iTunes.

A life-long adventurer, Brandon (along with Heather and daughter Rosie and son Wilder) spends his time surfing, snorkeling, hiking, and swimming in the ocean near his home in Maui, Hawaii.

Press
Brandon’s writing has been featured on Forbes.com, Entrepreneur.com, FoxNews.com, Money Magazine, and numerous other publications across the web and in print media.

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YouTube
Instagram @beardybrandon
Open Door Capital

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Lots of people want to know: Should you invest right now?

Is It a Good Time to Invest in Real Estate Right Now?

Here’s how I look at it. We have no idea what the future is going to hold.

I love people who are like, “Well, if I was investing back in ’07 or ’08, I would have made a killing!”

No, you wouldn’t, because we didn’t know what was going to go on in ’07 or ’08. We didn’t know it was going to crash in ’06, ’07, ’08. We didn’t know where the bottom was. And we didn’t know when it was going to climb up again.

You never know anything—ever. That’s the bottom line, right? We never know anything, ever. So right now, we don’t know anything.

Related: 7 Essential Real Estate Investing Tips From a Successful Investor

So, should we invest in real estate right now? Well, what if the market goes up? What if it continues like right now? It’s super competitive, the market’s climbing.

Or what if the market tanks? What if we go into another recession like ’08, ’09? What if it kind of goes somewhere in between? It’s kind of like those are the three options: climb, tank, somewhere in between.

My 2020 Real Estate Investing Plan

Here’s my point. No matter what, I want to continue buying good cash-flowing rental properties. I want to keep buying real estate. I’m going to keep flipping houses in a way that I can win either direction.

And so, in other words, you never know what’s going to happen. So, you always invest not knowing what’s going to happen.

Now, how does that look tangibly?

Related: Here’s What It Takes to Commit to Real Estate Investing

Well, first of all, if I buy a property that cash flows like an ATM machine today and the market drops, it’s still going to cash flow really well tomorrow—even if the market drops significantly.

If I flip houses, then I have a huge margin—I have a 20 or 30% margin on what I’m going to make on it—the market could drop 20 or 30% before I’m even worried. If I could rent that property out, if the market did crash 20 or 30%, then I’m still OK, because I’ve got another backup strategy.

So, no matter what, I’m going to keep working.

man with blue geans and sneaker shoes in stair

How to Proceed as an Investor in Any Stage of the Market Cycle

Here’s the key: the mindset change. When things get hard, many people quit. They’re like, “Well, the market’s really hot right now. I think I’m just gonna stop and wait ’til it’s easy.”

First of all, by doing so, it’s just taking the easy way out. It’s really more of an excuse than anything. You’re not going to invest later either.

What I like to compare it to is baseball. When you play baseball, to practice swinging, you pick up four bats at a time. It’s super heavy. Then, you drop the three bats and you just have one. And now the one feels super light, because you were practicing with something more difficult than what you’re actually going to be performing with.

Your muscles get accustomed to the larger weight. So, by dropping the three bats, one feels really light—you can hit it easily and hit it well.

Related: Investment Success in Good & Bad Times: A Recession-Proof Investing Plan That’s Never Failed Me

This is the same thing. If now is a hard time to invest, which I will admit, it’s hard to find deals right now. It’s competitive. There are a lot of people getting in. Does that mean we shouldn’t invest? No, it just means right now we’re swinging with four bats—and that’s OK.

We’re swinging with four bats. And pretty soon if the market drops, then you’re going to be like a kid in a candy store—I’ll take that deal and that deal and that deal—because you got your education in a tough time.

If the market doesn’t drop and it continues to be competitive and we just continue to sail through this… well, good! You’re going to have these massive muscles to be able to outshine everyone else, because you didn’t stop swinging.

No matter what, we don’t know what’s going to happen—ever—in the future. All we can do is say, “I want to be successful, and I’m going to prepare for that.”

So that’s why I say: yes, still invest right now. It’s just harder than it might be other times.

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Do you agree? Disagree? I’d love to hear your opinion.

Join the discussion with a comment below!