@Adam Rudolph no its not too late.
@Adam Rudolph I don’t think it’s too late. People will always need a place to live. Maybe HOW you invest is different. Sometimes your best bet may be flipping but other times it would be buy and hold. All depends on your market.
In addition to that, who you are surrounding yourself with has a big impact on your perspective of the “wave”. I know there are times when I’m listening to podcasts or talking to other investors when I feel like I’ve missed the wave. But when I talk to my non-real estate investors about it, they look at me like I have 5 heads.
Basically: focus on what TYPE of investing is going to be most effective in your area. There are many real estate waves to catch my friend.
Kiyosaki’s discussion on “catching the wave late” revolves around people who try to get in on the “hot tip” or the new get rich quick scheme. This is referencing people who are trying to find the new Amazon stock or bitcoin. (In particular, I’m fielding a lot of questions about cannabis equity at the moment.) I.e. he’s referencing gamblers who don’t understand, or care to understand, the fundamental rules of investing.
Real estate is an investment that, if done properly, can be rewarding in every market. However, like all other forms of investing, it takes a high degree of education and a plan. It is certainly not without risks. Purchasing a bad deal or one you don’t understand can put you behind very quickly. But, just like Kiyosaki’s rich dad said, understanding the fundamentals and becoming a professional investor takes those risks off the table.
Anyone who is looking to get rich quick in real estate, the stock market, or cryptocurrency always runs a high risk of being bitten. For anyone who takes the time and effort to truly understand how to invest professionally will avoid many of those pitfalls.
Wouldn't spend too much time thinking about it. You read it and it peaked your interest on how it can better your life! Waves are unlimited. Catch one and get started! Spend some time learning actionable steps to take you where you need to be this year.
Welcome to the forums!
A good investment in any market is one that you know you have done your homework on and therefore can sleep well at night.
@Adam Rudolph : Yes, the cycle that started in 2009 is getting long in the tooth, but deals do show up. Get your ducks in a row. Cash talks B***S*** walks is truer now. Get your money lined up. My last deal was literally a 30 minute decision.
@Adam Rudolph Great question! As a total newbie I’ve had this question rolling around in my head as well. Glad someone asked it!
@Mikael Winkler "The people getting wiped out in the "wave" are the ones who caught the wave with no idea how to surf!"...preach it! Love this saying!
Well theres videos of Robert saying the economy is about to crash on YouTube from 6 years ago so I’d be less worried about his “wave “ theories . I know one thing : sitting around waiting isn’t going to do much for your financial goals in life in the future ! The overwhelming majority of would-be investors always talk about getting in but only when conditions are right or life slows down or the economy changes etc. everyone hopes it will get better , poor people hope . That ought to tell you something ! It means the future does not get better by hope .. it gets better by plan and taking action today
@Adam Rudolph Rich people analyze reward. Poor people analyze risk. Just buy something and stop making excuses.
@Adam Rudolph if you are nervous now, you will be petrified if there is a 20 percent correction. We bought our first deal in 2011, and quite a few people said we were crazy. Time horizon is everything.
Great point! Well said.
Holistically, I think it comes down to how you view the potential deluge in any situation. Do you see something that's not adding up and say, "I can't do this (or I can't do this right now)", or do you say, "How do I make this work?" These other replies are correct. You (and I) need to research and figure out the right ways to play the game in the current economic cycle so we can ride the waves, no matter how them come. Lastly, no one starts out a great surfer. Skill comes from practice.
I think that quote might relate more the thought that “a rising tide lifts all ships”. Meaning anyone jumping on the wave while the market is rising, good or bad deal, will still appear to be “making money”. When the wave crashes, those who caught it late, and those who had no idea how to surf crash with it. So I think the OP might be right in the fact that it’s too late, as compared to 2012, when anything you bought, now worth more than it was. It’s been said by many because it’s true, a true deal can exist in any market, they are just way harder to find.
It is late in the current cycle and yes many people rushing in now could face problems. That being said, I got into real estate in 2004 and everyone warned it was late cycle. Honestly renting houses in 2006 was about as hard as it gets. Record one ownership and loans passed out like candy on Halloween. I survived it and am stronger because of it.
Hey Adam! I see real estate as a long term investment . There are always quick deals to be had in any market but the bulk of my net worth is from buy and holds . When I started, all I focused on was the long game by focusing on cash flow and paying off my the debt over time . Since I started buying in 2012, I’ve been lucky to have equity buildup but the long game is still in play . I still find deals where you can get 30% minimum returns cash on cash on a single family rentals and over many years due to compounding interest, as long as you keep reinvesting will turn into a huge number and financial freedom .
The best time to invest is now !
Start slow and small...but start! like many other said before it is probably the best way to go if you have concern about the market being too hot.
It is for sure harder to get good deals then couple of years ago but right Buy & Hold are still possible...BRRRR is almost impossible but BRRPR isn't (P for partial rifi)...and personally I would avoid flipping for sure.
For the past 2-3 years I was convinced that the market will start changing direction any moment which obviously didn't happen yet...This week I am closing on my first out of state deal...the key is focusing on a market and research it as thoroughly as possible until you get confident on which deals have enough margin of error to weather a potentially likely market storm. I probably analyzed about 20 different cities in 150 mile radius from NYC until I found a market I had a good feeling for...in my case I was lucky to find a tired landlord that just wanted to get rid of the house after evicting a tenant...having analyzed so many houses in the area I saw immediately it was priced well and was able to make an offer within 2 days...appraisal came couple of Ks higher then accepted offer...
Bottom line it is a combination of luck supported by lots of education and preparation.
Originally posted by @William Glass :
@Adam Rudolph The key thing is real estate isn't a fad or specialty investment. It's not "a wave" it's the ocean...
My point is real estate isn't going anywhere and you haven't missed out. As everyone else has said the key is creating and finding deals.
There's an old saying -- they aren't making any more land!
In the words of Rich Dad Poor Dad; money is made when you buy! That being said; the market always go in cycles; and we may be at the top or on the way to top; hard to make perfect timing!!!
You can do flips (as you can always trade like stock) with renovation. This works in most markets.
The rental should make sense; as long as you do the numbers based on cash flow and accounting for maintenence, vacanies, any loan payments. If you are betting appreciation; that might lead you to trouble.
Try to buy under value property and make some renovation; that gives you chance to build instant equity.
Good luck on your success
@Alvin Sylvain Exactly! Unless Elon Musk colonizes Mars sometime soon, they aren't making any more land.
Originally posted by @Nathan G. :
I'm guessing you're under 60. You could easily invest in rental property and be cash-flowing in under ten years if you hustle. Then you could live another 20 - 30 years off that cash-flow.
The best time to plant a tree was 20 years ago. The second best time is today.
The second best time was 19 years ago.. just kidding i get it ;)
“It is your decisions, and not your conditions, that determine your destiny.”
@Adam Rudolph I truly believe it has to do with mindset, and effort. If your putting in the effort (learning, networking, etc.) and you truly understand "why" you want to take this journey, that it will get you through. Of course there are other key factors such as cash reserves, REI strategy, patience and hustle (this list can go on and on). There will always be cycles in Real Estate, but for newbies such us , drive and commitment to process will determine our long-term success. I wish you the BEST man... Keep on pushing!!
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