Is now a good time to start investing?

Buying & Selling Real Estate
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Is now a good time to start investing?

Jordan Murrell
Las Vegas, NV · Member since 2020 · 162 posts · 113 votes

Good morning all (PST),

I am going to start by saying, I am so happy I have found Bigger Pockets and everyone in it. I have been reading through all the forums, attending webinars and listening to the podcasts. Thoroughly enjoying learning the process.

With that said, I am looking to buy my first investment property. Due to the corona virus, I am hesitant. People are dying, losing jobs and aren’t able to pay rent. I guess what I am trying to ask is that is there ever a right time? I would love to hear different opinions about the whole situation.

Thank you!

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Shiloh LundahlPro Member
Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
6y

@Jordan Murrell The answer is yes. It’s always a good time to start investing. Truthfully, investing is not about timing; it’s about numbers. Do the numbers make sense if things stay the same? Do the numbers make sense if things go down? What if they go down a lot? Is the location able to support a downturn in the market or will people start to mass exit the area? Do I have enough reserves to whether most unforeseen events or government intervention in my investing plan? If you are able to answer those questions and still feel good about the investment, then go for it. If not, then don’t.

Additionally, those who know how to invest know how to recognize good deals and they have networks and systems in place to take advantage of good deals quickly. So even if you don’t find a deal that looks like it makes sense by the numbers, spending time learning and networking with people who are still doing deals is going to help prepare you for when you do find a good deal.

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  • Tyler Brunette
    Accountant · Tacoma, WA · Member since 2015 · 3 posts · 4 votes
    6y

    I have the exact same question. I have a good, reliable job with no layoff in sight though it's not high paying. My decision is between buying a small multi-family or putting more money in index funds during this market downturn. 

    3Reply
  • Jordan Murrell
    OP
    Las Vegas, NV · Member since 2020 · 162 posts · 113 votes
    6y

    @Tyler Brunette I am also a stock investor and have been taking advantage of the down market. The real estate investment is one that I am targeting as I have seen the benefits such as freedom that it will bring.

    1Reply
  • Matt Millard
    Lewisville, TX · Member since 2015 · 343 posts · 264 votes
    6y

    @Jordan Murrell

    I recommend crypto & silver during these trying times!

    And syndications in recession resistant offerings like mobile home parks.

    2Reply
  • Jordan Murrell
    OP
    Las Vegas, NV · Member since 2020 · 162 posts · 113 votes
    6y

    @Matt Millard

    I will take a look at crypto, metals & syndicates.

    Thanks Matt

    1Reply
  • Carmichael Lewis
    Chicago · Member since 2019 · 75 posts · 49 votes
    6y

    @Jordan Murrell, I'm not a portfolio investor and I cannot give you knowledge on that. However, I am a real estate investor and I am doing quite well. Any time is good to invest as long as you have a plan. Look at where your at financially, can you be laid off, how much do you have in reserves etc. What kind of investment do you want single family homes, multi unit, commercial, trailer, storage etc. Now is a great time because of the pandemic. 

    7Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    6y

    Depends on how much $ you have. If you are liquid and have a nice amount of cash reserves it is going to be a great time to buy from the instagram investor who over leveraged and will be selling at a steep discount.

    If you have no $ and are getting in the game, I think you are gonna be on the sidelines for a while as the only $ you can get will be hard $ and it will come at such a steep price the deals will not be promising and have a ton of risk

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    6Reply
  • Justin K.
    East Texas · Member since 2018 · 205 posts · 138 votes
    6y
    Originally posted by @Chris Seveney:

    Depends on how much $ you have. If you are liquid and have a nice amount of cash reserves it is going to be a great time to buy from the instagram investor who over leveraged and will be selling at a steep discount.

    If you have no $ and are getting in the game, I think you are gonna be on the sidelines for a while as the only $ you can get will be hard $ and it will come at such a steep price the deals will not be promising and have a ton of risk

     Closings are 60-90 days now from contract signing. People used to be able to close faster with cash but that's not the case right now. EVERYTHING is in gridlock be it traditional financing or hard money. 

    3Reply
  • Shiloh LundahlPro Member
    Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
    6y

    @Jordan Murrell The answer is yes. It’s always a good time to start investing. Truthfully, investing is not about timing; it’s about numbers. Do the numbers make sense if things stay the same? Do the numbers make sense if things go down? What if they go down a lot? Is the location able to support a downturn in the market or will people start to mass exit the area? Do I have enough reserves to whether most unforeseen events or government intervention in my investing plan? If you are able to answer those questions and still feel good about the investment, then go for it. If not, then don’t.

    Additionally, those who know how to invest know how to recognize good deals and they have networks and systems in place to take advantage of good deals quickly. So even if you don’t find a deal that looks like it makes sense by the numbers, spending time learning and networking with people who are still doing deals is going to help prepare you for when you do find a good deal.

    480-206-1209Podcast Guest on Show #287
    25Reply
  • John MorganPro Member
    Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
    6y

    @Jordan Murrell

    Yes, but start analyzing deals and look for trends in different areas. Take your time. I assume the Vegas area will get slaughtered again so maybe wait 6 months for that area to see amazing deals pop up. Some areas will hold strong and might not drop much. I focus on C class working family hoods in DFW. There will always be a strong demand for rentals in the C to C+ class areas.

    7Reply
  • Todd Hutcheson
    Wholesaler · Orlando, FL · Member since 2008 · 111 posts · 251 votes
    6y

    No, for sure. Wait at least 6 weeks to see where the market is.
    We need to see where prices will be and more importantly for buy and hold where rents will be.

    That being said, If you can find a seller finance deal at 50% of value then you should at least consider.

    10Reply
  • Account Closed
    Rental Property Investor · Indianapolis, IN · Member since 2020 · 562 posts · 554 votes
    6y

    @Jordan Murrell any time is a good time to start investing. Just do your research, get educated and find the right deal. Same process regardless of what is going on in the world. You just have to be a bit more careful at times like this.

    2Reply
  • Jordan Murrell
    OP
    Las Vegas, NV · Member since 2020 · 162 posts · 113 votes
    6y

    @Carmichael Lewis

    Thank you for your response. I am looking to house hack - SFR right now.

    I see a great opportunity now with this pandemic going on. Figured this could and would be the ideal time to get started.

    1Reply
  • Jordan Murrell
    OP
    Las Vegas, NV · Member since 2020 · 162 posts · 113 votes
    6y

    @Chris Seveney

    That is great advice. I definitely will be shopping around for the over leveraged deals. They would want to get those off their hands...

    Perfect time for a new investor such as myself to jump in.

    1Reply
  • Jordan Murrell
    OP
    Las Vegas, NV · Member since 2020 · 162 posts · 113 votes
    6y

    @Justin K.

    3 months after signing is a while. I presume a lot of things will be close to back up and running in 3 months.

    0Reply
  • Jordan Murrell
    OP
    Las Vegas, NV · Member since 2020 · 162 posts · 113 votes
    6y

    @Todd Hutcheson

    Thanks Todd. Seller financing right now would be ideal.

    1Reply
  • Shanti S.
    Real Estate Investor · Longmont, CO · Member since 2009 · 208 posts · 109 votes
    6y
    Originally posted by @Matt Millard:

    @Jordan Murrell

    I recommend crypto & silver during these trying times!

    And syndications in recession resistant offerings like mobile home parks.

     I'm not going to say your portfolio should not have crypto or silver in it, but both have performed rather poorly thus far since the bad news started being on repeat with MSM (main stream media).  Precious metals have more of a track record of course but the decoupling of the paper price and the physical prices blindsided a lot of metals enthusiasts.  The narrative that Bitcoin and other crypto assets would be a safe haven during the next stock market crash or economic meltdown has not been proving out for that sector of enthusiasts either.

    3Reply
  • Justin K.
    East Texas · Member since 2018 · 205 posts · 138 votes
    6y
    Originally posted by @Jordan Murrell:

    @Justin K.

    3 months after signing is a while. I presume a lot of things will be close to back up and running in 3 months.

     I don't. I see this going into 2021 because of the second wave that's more than likely going to hit fall. 

    2Reply
  • Santoria Weems
    Flipper/Rehabber · Saint Louis, MO · Member since 2019 · 3 posts · 1 vote
    6y

    @Jordan Murrell

    Hello, I am looking to begin learning about stocks. Do you know an easy sites for beginners?

    Thank you.

    0Reply
  • Nick Rutkowski
    Rental Property Investor · Ithaca, NY · Member since 2015 · 1k+ posts · 1k+ votes
    6y

    @Jordan Murrell

    I’d start gathering up resources and pull the trigger 1-6months. With the way states are declaring a rent moratoriums and people are forbearing their mortgages, somewhere a link in the chain will break.

    2Reply
  • Carmichael Lewis
    Chicago · Member since 2019 · 75 posts · 49 votes
    6y
    Originally posted by @Jordan Murrell:

    @Carmichael Lewis

    Thank you for your response. I am looking to house hack - SFR right now.

    I see a great opportunity now with this pandemic going on. Figured this could and would be the ideal time to get started.

    Smart move. That is a great way to build your portfolio. Remember, always run the numbers. Determine how much of a return you want and if that property match or supersede your expectations, it's a deal. If it doesn't, dont do it. Best of luck!!!

    1Reply
  • Jordan Murrell
    OP
    Las Vegas, NV · Member since 2020 · 162 posts · 113 votes
    6y

    @Carmichael Lewis

    Thank you Carmichael!

    0Reply
  • Scott Mac
    Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    6y

    Hi Jordan,

    I'm a very conservative Investor. I'm in this to make money, not to hope for the best and take chances.

    Not everyone is like that though, and with more risk (sometimes) comes more rewards.

    Personally, (at this time) I'm not seeing a "Bridge over Troubled Water" for a lot of people right now and that means possible opportunities for other people.

    And every location is different, for instance New York City is under lockdown as well as many other places and that will factor into it too. (how long, how many will survive, etc...). 

    When is the right time to move on something, (there is no one size fits all answer) that's up to you.

    What s used to be like in New York City (when people were not under stay at home orders): https://www.youtube.com/watch?v=WrcwRt6J32o

    Good Luck!

    2Reply
  • Sarab Mehta
    Member since 2020 · 1 post · 0 votes
    6y

    I think this is a great time to invest.  The lockdown will end soon and when it does everyone will try to buy at the same time.  It's best to get in early while there is still time. 

    0Reply
  • Justin Frank
    Rental Property Investor · Tacoma, WA · Member since 2018 · 244 posts · 140 votes
    6y

    Hey @Jordan Murrell

    It is always a good time to start investing. Your Strategies, and criteria may (should) change with the times but I don’t think there is ever a reason to sit around and wait. I do believe that the economy is going to suffer much more than people are hoping for but I also believe that there are buyers and sellers, along with good and bad deals regardless of the times. There will be a lot of people who struggle to make it through this recession and there will be a lot of people who come out the other side wealthy. Real estate investing is a hard game to play but you are on the right track by asking questions and becoming educated. Don’t wait, but be smart and have patience when looking for the right deal. 

    1Reply
  • Asim Sheikh
    Long Island, NY · Member since 2019 · 97 posts · 55 votes
    6y

    @Jordan Murrell - As someone who is new and fairly conservative myself, I prefer to take the "wait and see" approach, as there are way too variables right now, and not a single "guru" can accurately predict the outcome of any of those variables.  I plan on watching these factors very carefully over the next few weeks/months, and will start to jump back in when the time is right.  Of course, the numbers, and the resulting financial position still have to make sense for me to move forward.

    1Reply
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