New to Real Estate · Brooklyn, NY · Member since 2021 · 38 posts · 27 votes
I've been hearing mixed opinions on starting out now, versus holding on to the money until the housing market dips.
The con of starting now is that the investment properties value will dip shortly after you purchase it.
In my opinion, the pro of starting now is building a network, getting my feet wet in real estate, and being even more prepared to save up and buy up property when the market dips.
Also, worst case, if it cash flows, and them market dips, wouldn't the rent still cover the P&I, cap ex, etc?
I've been hearing mixed opinions on starting out now, versus holding on to the money until the housing market dips.
The con of starting now is that the investment properties value will dip shortly after you purchase it.
How do you know the market will dip right after you purchase, you have some crystal ball you can share with us? Many investor, including myself, thought a market correction was coming in 2017. We were wrong and though I did not sit on the sidelines (thank goodness), anyone who did missed on on 4 more years of growth in the market in just about every location in the US. So to quote the popular saying, don't wait to buy real estate, buy real estate and wait.
A good deal is a good deal no matter what the market does down the road for buy and hold. For flips, you do need to be careful of a deal which exposes you to a long timeframe in a market that is poised or already started to decline as time is your enemy on flips.
I've been hearing mixed opinions on starting out now, versus holding on to the money until the housing market dips.
The con of starting now is that the investment properties value will dip shortly after you purchase it.
How do you know the market will dip right after you purchase, you have some crystal ball you can share with us? Many investor, including myself, thought a market correction was coming in 2017. We were wrong and though I did not sit on the sidelines (thank goodness), anyone who did missed on on 4 more years of growth in the market in just about every location in the US. So to quote the popular saying, don't wait to buy real estate, buy real estate and wait.
A good deal is a good deal no matter what the market does down the road for buy and hold. For flips, you do need to be careful of a deal which exposes you to a long timeframe in a market that is poised or already started to decline as time is your enemy on flips.
Lender · Vancouver, WA · Member since 2015 · 482 posts · 316 votes
4y
You need to look at the market with "fresh eyes". If you look with hindsight, it always looks like "not the right time." The problem is that no one knows when the dips will happen and or for how long. If we watch the pros, when things are volatile in real estate, they invest in stocks, or another vehicle, and on and on. Just holding onto the money turns it into dead cash, which gets eaten away by inflation.
Regarding the rent question, if the market dips a lot and demand suffer, rental income can dip too. Nothing is a sure bet.
Regarding building a team - do whatever you can to get your feet wet, to build more experience, and to raise capital. As an agent, seeing all that I see, I don't see the market taking a dip, at least in my market anyways. It spikes at the start of every season, and then trickles down a bit, and repeats itself. When it dips, you must be ready to jump on the opportunities.
Also, with any purchase, plan your exit. Most people "wait" for the right time, but there is no such thing.
Specialist · Charlotte, NC · Member since 2021 · 185 posts · 106 votes
4y
@Joshua Sun
Hi Josh,
I don’t think there is going to be a dip. I think it might slow down a bit on the buy side but prices will continue to go up. Real estate will just continue to appreciate and go up. The time to buy is now. That’s strictly from an investment stand point. If you need a realtor in the Charlotte metro area please let me know. I am happy to help.