Why You Need to Stop Trying to Predict the Next Real Estate Market Crash!

Why You Need to Stop Trying to Predict the Next Real Estate Market Crash!

2 min read
Matt Faircloth

Matt Faircloth, co-founder and president of the DeRosa Group, is a seasoned real estate investor. The DeRosa Group, based in historic Trenton, N.J., is a developer and owner of commercial and residential property with a mission to “transform lives through real estate.” DeRosa creates partnerships to finance select real estate investments and has a proven track record of providing safe, profitable investment opportunities to their clients.

Experience
Matt, along with his wife Liz, started investing in real estate in 2004 with the purchase of a duplex outside of Philadelphia with a $30,000 private loan. They founded DeRosa Group in 2005 and have since grown the company to hundreds of units in residential and commercial assets throughout the East Coast. Under Matt’s leadership, DeRosa has completed tens of millions in real estate transactions involving private capital, including fix and flips, single family home rentals, mixed-use buildings, apartment buildings, and office buildings.

Matt is an active contributor to the BiggerPockets Blog and has been featured on the BiggerPockets Podcast three times (show #88, #203, and #289). He also regularly contributes to BiggerPockets’ Facebook Live sessions and teaches free educational webinars for the BiggerPockets Community.

Matt authored the Amazon Best Seller Raising Private Capital: Building Your Real Estate Empire Using Other People’s Money. The book is a comprehensive roadmap for investors looking to inject more private capital into their real estate investing business and is a must-read for anyone looking to grow their business by using private lenders and equity investors. Kirkus, the No. 1 trade review publication for books, had this to say about Raising Private Capital: “In this impressively accessible introduction to a complex subject, Faircloth covers every aspect of private funding, presuming little knowledge on the part of the reader.”

Matt and his wife Liz live in New Hope, Penn., with their two children.

Education
Matt earned a B.S. in Industrial and Systems Engineering with a minor in Business from Virginia Tech. (Go, Hokies!)

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Where’s the real estate market going in 2019?

Everybody wants to know. It’s been a little squirrelly, going up and going down—it’s kind of all over the place.

So a lot of people want to know. What’s it going to do?! I’m going to tell you.

Related: 6 Ways to Prepare for the Next Market Crash

When Is the Next Real Estate Market Crash?

Here’s the thing. My crystal ball, it’s broken. I don’t know what the market is going to do!

Your crystal ball is broken, too. In fact, nobody absolutely knows where the market is headed.

I’m sure there are plenty of people with opinions, with thoughts on what the market is going to do. But one thing I can promise you is that nobody absolutely knows.

I’ll tell you the only thing we can know: it’s going to change. That’s what markets do. They’re not stagnant.

It may go up! I know there’s a lot of people who think that it won’t. They think that it’s definitely going to go down.

But they don’t know that. Markets are dynamic. All we can know for sure about them is that they will change.

Nothing ever stays the same in markets. There’s supply and demand, and so things go up and down. That’s guaranteed to happen.

How to Prepare for Real Estate Market Swings

So here’s what you can do to prepare yourself for the upcoming year:

  1. Listen to trustworthy investors. Consider what people you trust think is going to happen. But be careful with anyone who tells you that they absolutely know. And don’t listen to anyone who tells you that it’s absolutely going to go down “because it’s due.” That’s not how it works.
  2. Hedge your bets. Prepare yourself for change, but don’t make any rash decisions based on someone else’s opinion. They don’t have factual data about the future. Don’t do sketchy deals. Bake in a “just in case” factor, so that if the market were to go drastically down, it wouldn’t devastate your investing business.

Watch my video above, where I go into further detail about why the market is, and will always be, unpredictable—no matter who tries to tell you otherwise.

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How concerned are you about where the market is headed? Why? What are you doing to prepare? How is it different from the way you’d normally be investing?

Let’s talk in the comment section!

 

Where's the real estate market going in 2019? Everybody wants to know. It's been a little squirrelly, going up and going down—it's kind of all over the place. So a lot of people want to know. What's it going to do?! I'm going to tell you.