Is now a good time to start investing?

58 Replies

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!

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. 

@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. 

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

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. 

@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.

@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.

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.

@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.

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.

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. 

@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.

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!!!

 

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!

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