I'm ready and have the means to invest, but can I make a good ROI buying properties at "top of market"? I'm in Minneapolis and housing prices keep increasing. so do I wait it out for the so called market crash that might not happen for the next 10 years or dive in?
@Jara Quarve I bought a duplex at the beginning of the month and just got an agreement on another today. Figure out your criteria and then find deals that match it.
No don't wait. It really doesnt matter at all what the market does. I never understood why people panick when the market fluctuates (am I missing something)?
The market doesnt change in 3 months drastically (time to flip a house).
But alas.. that is not the point.
If you want to get into this investing game this is what you do.
You get a website and you use SEO to make it rank.
It doesnt matter what you do (unless you buy houses at an auction), when you want to find off market properties people need to be able to find you and trust you enough to do business with. A website does that for you. You are credible with a (good) website, you are a company you are reachable, and you exist. That is a solid start.
Finding off market properties is the bread and butter of REI.
If you can find off market properties you control the game you are a god among ants. Don't be the ant!
That's the thing about calling market tops and crashes. No one knows what the market will do. I have heard people calling for a crash the last 3yrs those people missed on some great opportunities.
Focus on your process and buy at the right price, be properly leverage, and have enough free cash to buy should the market take a dip in the future. You want to be able to scale into the market while it's going up, down, and sideways.
That's the thing about calling market tops and crashes. No one knows what the market will do. I have heard people calling for a crash the last 3yrs those people missed on some great opportunities.
Focus on your process and buy at the right price, be properly leverage, and have enough free cash to buy should the market take a dip in the future. You want to be able to scale into the market while it's going up, down, and sideways.
I agree with Mr Wong! I love saying that
Mr WONG.. sighhh.. you made my day..
Again I do want to add the importance of getting a website. People ALWAYS brush websites off... "Ohh when I am already making deals and have money I will worry about that".. NO!
BAD!
Get a website NOW... as this IS what is going to get you deals... both due to getting leads and getting these leads signed.
And when you do have a credible website and you use SEO....
You will NEVER AGAIN have to spent a cent on marketing. Look, let me show you the leads that came in this weekend alone.
Keep in mind weekends are DEAD... yet I got several. Was I working my business? No. Was I spending money on marketing? No! Heck, I went hiking, then movies all weekend long. Yet the leads are streaming in.
Envy? Don't! Just do the same I did!
I simply thought ahead and took the right steps. When everyone that started the same time with me were trying to take shortcuts how to start, I set out a plan and SEO and website was the main topic. I learned SEO I applied SEO and now.. all those people are STILL struggling to get to their next deal. I pick and choose my deals.
1) Find a Great domain name
2) Head over to Investor Carrot and get the middle package
3) Go through their SEO training which serves as a great little starter on SEO.
4) Make your website credible first and foremost.
5) When you have a decent credibility score, work in all you learn on SEO
6) While you constantly improve your website, start learning about PPC/DMM
7) Send out your first campaigns.
8) You get your first paycheck
9) Dump 90% of said paycheck into your business, by increasing your marketing budget
10) Repeat process while ALWAYS working on SEO
11) Withing 3 to 4 months (if you get to be as good as SEO as I am) you WILL rank #1
12) Leads magically start pouring in faster than you can open them in your inbox
13) (Optional) Quit paying a cent on Marketing, and enjoy actually investing!
14) Become filthy rich and hire people just so you can be a douche to them and call them "the help"
15) The end!
Simple yes?
YES IT IS>
Just have a plan. Have a strategy, follow that strategy, let NOTHING and NO ONE stop you or slow you down! And before you know it.. you are king of the mountain!
@Jara Quarve if you choose to wait, you're giving up years that you could be cash flowing! I take whatever the market is offering! Right now in OKC it makes a lot of sense to buy properties that don't need to be flipped and cash flow off of them! The upcoming dip isn't as scary for properties here because we're really insulated to recession. For instance, in the last recession, other markets saw dips of 20% and we only saw 6%!
I plan to hold through any dips anyway, but I like that I might have a better chance of pulling money from these properties when it'll be harder to get lending. During the next dip my properties will likely still be close to what I bought them for and since we likely won't be as shaky as other markets banks will be more willing to refinance than they will in other markets. Sooo, I can have more cash to make purchases when all the properties are priced great!
I'm ready and have the means to invest, but can I make a good ROI buying properties at "top of market"? I'm in Minneapolis and housing prices keep increasing. so do I wait it out for the so called market crash that might not happen for the next 10 years or dive in?
Last year people were saying it was the top of the market, then we hit this year.... Nobody knows when we are at the top, in MPLS there is still a shortage of inventory in most areas. If your goal is buy and hold I would focus on finding properties that meet your goals and not worry as much about the market cycles. If you are flipping and taking on long, drawn out construction projects it may be of more concern but the market price doesn't matter until you plan to sell or unless your plan requires you to refi.
@Jara Quarve You should definitely just go for it. I wouldn't wait until you "aren't at the top of the market." I bought my first duplex in the Twin Cities a year and a half ago. Since then I've been able to update it and add value and learn how to be a property manger with training wheels since I house hack it. Now I'm almost ready to look for another property.
Just make sure if you are going to buy that it can cash flow when the market is up and when it is down.
@Jara Quarve I bought a duplex at the beginning of the month and just got an agreement on another today. Figure out your criteria and then find deals that match it.
When you look at our rental vacancy rate, the number of people moving to the area and compare that with units being built all signs point to it being a great time to invest in rental property.
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