Anyone slowing down on purchases due to a possible correction?

Anyone slowing down on purchases due to a possible correction?

Las Vegas · Member since 2018 · 21 posts · 6 votes

Hello,

I'm new to RE investing and actively searching for my first multifamily property. That said, as my plan is to hold these properties for my retirement, I'm apprehensive to get into the market now as it appears we may be due for a correction. As someone who lived through the crash in Vegas in 2008, I'd hate to buy at the top only to see the value significantly drop soon after. Been there before and it's no fun. It seems like it makes sense to sit out a year or so, wait for the correction, and then jump in with more buying power.  

That said, I'm curious what seasoned investors think about this mindset. 

Thank you in advance for your insight.

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Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
7y

Time is the greatest ally of the buy and hold investor.  Time erases all mistakes. Even if you bought at the height of the market, and held on, You would have paid that mortgage down for 10-12 years by now.  You only lose money if you sell.  

Since WW2, prices have only dropped twice on a national level, and only the one from a decade ago was a significant amount.

Now if your market is more cyclical like Phoenix or San Francisco, then maybe you proceed with caution...but many markets are not cyclical. They go up, then flatten, then go up, then flatten.

And one of the great things about the last housing collapse.....so many home owners became renters, so rentals had strong demand. Rents skyrocketed in a ton of markets with the housing collapse.

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  • Investor · Northern Virginia · Member since 2017 · 159 posts · 59 votes
    7y

    Only slowing down to gain more financial momentum.  I'm always shopping, so if I find a good deal, I will figure out a way to close on it.  My creativitiy will have to kick in or partner up with others.

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