San Mateo, CA · Member since 2013 · 3 posts · 2 votes
So i've read through the BP ebook and other books related to real estate. Most of them say that the right time to buy for an investor is when there is a lot of inventory and when the prices are low. When exactly is the 'correct time' and where could we find resources for research?
Real Estate Investor · Member since 2013 · 866 posts · 487 votes
12y
If you are in for the long haul, the right time to buy is whenever you find an opportunity fitting your investing goals and within your means and ability to complete the purchase.
Trying to time any market for the "right time" is foolish, risky and rarely successful.
Set your investing goals and parameters based on the conditions you see around you and then execute to your plan. The market will do what the market will do. Update your plan when appropriate and then continue to execute your plan.
Real Estate Investor · Lansdowne, PA · Member since 2013 · 1k+ posts · 656 votes
12y
Whats the price and inventory situation in your target market(s)? Meaning can you find deeply discounted deals that will offer good ROIs in the necessary timeframe according to your niche (profit point strategy). What is your chosen niche(fix and flip, turn-key rentals, wholesaling notes, etc)? Do you have a funding source in place? Do you have a good team in place for your business? Have you made any offers thus far? if not, why & when?? These are some pertinent questions you'll have to be able to answer first to determine if YOU are ready to close on your first deal...
Investor · Atlanta, GA · Member since 2013 · 922 posts · 336 votes
12y
Mary Is correct. There is no right time or perfect time to invest. When I lived in Southern CA it was tough. The average price of homes was 300k. Rental rates for this price was 1700 to 1900 per mo. No return. Looking on the MLS was tough. Best lead sources was bandit signs, Targeting Absentee owners and People who had Code Violations. Keep Studying this BP site, Network, Keep going to your REIA meetings and invest in your education.
Real Estate Investor · Member since 2013 · 866 posts · 487 votes
12y
If you are in for the long haul, the right time to buy is whenever you find an opportunity fitting your investing goals and within your means and ability to complete the purchase.
Trying to time any market for the "right time" is foolish, risky and rarely successful.
Set your investing goals and parameters based on the conditions you see around you and then execute to your plan. The market will do what the market will do. Update your plan when appropriate and then continue to execute your plan.
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
12y
The right time to buy is when the seller is bleeding. When you can stop the bleeding and send them on their way as an ambulatory patient while saving them with the opportunity of you being paid for your efforts is usually the right time to buy in any market. :)
Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
12y
The right time to buy was yesterday! Next best was 3 years ago! Just kidding.. To me, it's more about the right DEAL than the right time. You can find a good deal in any market if you take the time and energy and network to find it. They were just much more plentiful during the crisis..
As an old Chinese proverb goes, the best time to plant a tree was 10 yrs ago - the next best time is today..
Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
12y
1. When there is blood in the streets
2. When others are greedy
No...seriously, it really depends on what you're trying to do. In general I think any time is a great time to buy if you have access to sufficient non-MLS deal flow and know how to evaluate opportunities for given product types in a given area. The market for real estate is inefficient with high transaction costs and thus there will always be opportunities for folks that are experts in a given area with the financial resources and skill to execute.
The best time to buy is when your business plan is in play and works for your area situation. Honestly there is no "universal" right or wrong answers. The answer is what works for you.
Specialist · San Francisco, CA · Member since 2013 · 227 posts · 158 votes
12y
There are Buyers markets and Sellers markets.
In a Buyers market it's easier to buy and a little harder to sell but you still make a profit.
In a Sellers marker it's a little harder to buy but easier to sell and make more money when selling.
Personally, I like a Seller's market because I make more money in a Seller's market than in a Buyer's market but nothing guarantees success or failure. Every deal is different and stands on its own.
So the same as what everyone else has said the best time to buy is when you have a good deal.
Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes
12y
"The best time to plant a tree is 20 years ago, the second best is today."
Everyone has different situations, maybe the price is right but suddenly I have a family issue that keeps me out but that is a more important choice. Perhaps the numbers look great but I'd prefer to go travel. Maybe the numbers are close and I do go for it.
There is no textbook perfect method to anything, this place might make it seem that way but if that was the case this forum wouldn't need to exist. They'd just sell a book on how to invest. The point is, life throws us all different situations and we work with what is best suited for us by the guidance offered here and elsewhere. Sorry, vague questions get vague answers but if you align yourself with the right people to guide you it will give you much better odds of making decisions that are wise ones.
Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
12y
@Sam Leon , do you try to time the real estate cycle? I'm a 'fix and hold' investor and plan on holding for longer-term, but I wonder if I will have the foresight to sell, or at least deleverage, if things get crazy again. I wrote a blog about it the other day.. curious about your thoughts..
Real Estate Investor · Desoto, TX · Member since 2013 · 560 posts · 528 votes
12y
In my opinion, the right time to buy is whenever you have the funds, great financing and great deal. This should apply no matter if there is low inventory, high inventory, motivated seller, unmotivated seller,spring, summer, winter, fall, today, tomorrow, 20 years ago, 20 years in the future, etc. Obviously the conditions I listed will play a role in availability of great deals but you my point :)
Durham, NC · Member since 2012 · 498 posts · 48 votes
12y
The best time to buy was about two years ago when it was clear that many institutional investors were to start buying and all policies were pushing money into RE investments. However, investors never have to find the BEST time to buy; they only need to find a GOOD time to buy.
So i've read through the BP ebook and other books related to real estate. Most of them say that the right time to buy for an investor is when there is a lot of inventory and when the prices are low. When exactly is the 'correct time' and where could we find resources for research?
I wrote that book, so I just want to clarify something:
All the metrics you read about and I discussed in the book (inventory, price trends, saturation, buyer pool, investor competition, etc) are to help you determine WHERE to buy, not WHEN to buy.
Once you determine WHERE to buy, that is WHEN you should be buying. In other words, there are no bad times to buy, just bad places to buy and bad deals you shouldn't pursue...
Flipper/Rehabber · Greeley, CO · Member since 2013 · 2k+ posts · 1k+ votes
12y
I can't time the market because I don't have a crystal ball. Who knows what will happen with the economy, Interest rates, inventory, demand, new construction etc. I buy the best deals I can right now and if they are buy and holds make sure they have plenty of cash flow. If they are flips I make sure I have plenty of room to profit and sell them quick. I don't try to time anything.
Investor · Hendersonville, NC · Member since 2013 · 754 posts · 281 votes
12y
@Xing Zhu wrote: "The best time to buy was about two years ago when it was clear that many institutional investors were to start buying and all policies were pushing money into RE investments. However, investors never have to find the BEST time to buy; they only need to find a GOOD time to buy."
I guess I would be interested to know if that does in fact mean that a buy and hold of less than 10 years is not wise at this time. I have an opportunity to get a mortgage for the first time ever (due to a confluence of positive circumstances such as mortgage rates, my DtoI ratio, my wife working, etc) and am inclined to get two or three, thinking that a good SFD is almost always going to be a good bet if it flows and doesn't need a new HVAC or roof for some time, and even if housing prices drop due to major economic fundamentals going awry such as a stock market bubble burst or our debt problems coming home to roost, or the middle class going the way of the dodo bird ... OR it might not be a wise move even *if* I can get a mortgage at 4.8% because the market is on a major upswing, and what goes up must come down.....
Investor · Hendersonville, NC · Member since 2013 · 754 posts · 281 votes
12y
Originally posted by @J Scott:
All the metrics you read about and I discussed in the book (inventory, price trends, saturation, buyer pool, investor competition, etc) are to help you determine WHERE to buy, not WHEN to buy.
Once you determine WHERE to buy, that is WHEN you should be buying. In other words, there are no bad times to buy, just bad places to buy and bad deals you shouldn't pursue...
J, In stocks, the idea is to buy low and sell high. Is real estate fundamentally different than stocks in that anytime really is a good time to buy rentable SFDs? Perhaps real estate purchases can only be seen to be poorly-timed in retrospect. Clearly if one looks at housing data for 50 years, there are ups and downs, and buying when prices were up and having to sell when prices were down would not be considered a "good" move. As I said in my post right above this one, I am fairly excited to take out my first, second, and maybe even third mortgages in my local area in 2014 using interest rates in the 4.xx% range, 25% down on 30 year notes, holding for 25 years until I retire, which thus sounds like now would be a "good time to buy." But, for a couple reasons I'm not going to easily score a "deal" and so it feels kind of like buying a stock to me - and if I'm buying now when we have just seen a 20% annual increase in housing prices, on top of another 10% in the previous year, am I not bound to be along for the ride during a consequent drop in prices in the future? Or is it possible to more or less see the equity gains of 4-6% annually that real estate authors talk about in a historical context buy decent houses, if I hold long-term, and rent them for a net gain almost every year - even if bought for market value and in today's market?