Newbe question: Learn, generate, accumulate and wait to pounce?

3 Replies

Hello,

Just getting started in RE investment knowledge and wanted to see what you think of my current strategy...  The market is ultra-competitive both locally and seems to be nationally as well.  By ultra-competitive I mean there's deals to be made, but it's a "high tide" right now and real estate on most levels are at near highs in valuation and there are plenty of people purchasing for investment holdings.  My thought is rather than jump into the RE investment ring now, it would be best to learn as much as I can over the next x months/years while generating, accumulating and prepping to have funds and knowledge to take full advantage of deals while people are afraid to invest and overall market is not attractive.

The key to this being successful is to be truthful about how much money I can generate that would outperform buying and renting homes now.  I'm a serial entrepreneurial person and have many other streams of income now - sell on Amazon, Etsy, Walmart.com and have a career IT job (hard for me to give up any type of income) all at same time now.  With all these combined, I'm generating 7 figure revenues and high six figure earnings.  My thinking is learn as much as I can now and don't jump into the market now, but just wait and pounce when the market turns.  OR am I misreading the market, and now is just as good as any time to purchase and rent out (looking for monthly reoccurring revenue streams not buy and sell).

Any thoughts?

Thanks!

Dave

@Dave Delgado It's no secret that many real estate markets are heated up right now making it challenging to find deals. But good deals exist all the time, you just have to find them.  People sit around for many years waiting for the market to turn or do whatever they think it needs to do in order to invest all the while missing opportunity after opportunity.  You would be far better off networking, building relationships, and working to find deals now.  If there is another big housing dip, the networking, experience, and work you put in now is what would put you in a position to actually take advantage of such a situation. There's always a "reason" not to invest, but if you are financially prepared to invest then the best time is now.  

@Dave Delgado

All I can do is speak from my perspective, as a landlord in C-class properties in cheap neighborhoods.

The big mistake I see a lot of beginners make is believing that this business is something like 25% knowledge, 25% contacts, 50% money. This has proved to be untrue for me. This business for me is really 50% knowledge, 40% relationships, and 10% money, and I believe my personal business model is very heavily skewed toward knowledge in this field (to the detriment of my financial advancement). For most others, it's much more like 30% knowledge, 60% relationships, 10% money. My relationships are not just people on a phone list. I know them, they know me: we've made and lost money together.

There's really only one way to create the relationships you're going to need in this business, and that's to go out and create them. You're probably going to lose money while you do it. You have to accept that as part of building your business.