To buy or wait that is the question?

Question

I invest in OKC, and I wanted to hear from other investors if they think that now is a good time to invest or if you are waiting for something to change in the market. I am seeing different views of whether or not we are going to see deflation in the next few years and what interest rates are likely to do. Basically feeling out investor confidence that now is a good time to invest or not. I am currently in the process of getting a HELOC out on my primary residence and if I choose to use the money I would be banking on interest rates going up where in 10 years I'll be thanking myself for having 30 year fixed debt. My goal is long term wealth, using cash flow to be able to retire.

David Ginn · Answer

Hi @Bryan Eugene LongYou have to make sure that if you're going to lend money out on a home, let your home, that your job is extremely stable. Because your market is going to correct and fall and you're going to lose equities in your home. So if you borrow money against your home right now, you're going to pull the cash out of it, and then the market's going to fall and the value of the home is going to drop during the down cycle because we're looking at it heading into a deep recession. You want to make sure that you have stability in your job. So that if the market were to collapse and you've taken out a loan on your house, then you're going to be able to withstand the market as you go through it because you're living in the home that you have borrowed money out on. You need a very stable job to do that type of strategy. if you have a stable job then you can pull the money out and reinvest it into other assets in real estate, but keep in mind that your market's going to collapse. So what you do next is either take that money and lend it. In our system, we have people that make 12% and 3.75 points for a total of 15.75% a year as an example. So if you lend 100,000 dollars, you're going to make 15,750 dollars on the money that you lend. So that's one way you can do it, you can lend the money or you can go into flipping properties. I recommend that you lend first. Second is, I recommend you flip so that you get educated through the process.

Bob Okenwa · Answer

People have been waiting for change (i.e. housing crash) for a good 10 years or so now. Meanwhile, the price of homes has essentially tripled during that timespan. There are many people who have been active in the game during that period that have made millions off equity alone.

Find a deal, run the numbers, and if it works, pull the trigger. You make your money when you buy. Some people were bailed out of bad decisions by this rising market, but those are outliers. Buy right and you'll be in good shape.

Bryan Eugene Long · Answer

Bob okenwa I’m definitely not adverse to buying now, I bought my first rental property this year in July. I guess I’m uncertain of what’s going on with the economy and where it’s likely headed and what that means for rent prices. You are right, if the numbers are good then there isn’t really any reason not to move forward.