Tukwila, WA · Member since 2019 · 70 posts · 88 votes
When is the optimal time to purchase multi-family residential property? With the impending recession, what are some considerations for aspiring investors? What echelons of property should be honed in on? Which should be avoided? New member here, so if my post is in the wrong location or structured incorrectly, please let me know. Thanks!
Specialist · New York City, NY · Member since 2019 · 34 posts · 111 votes
7y
@James C Norman Jr
Ideally, the optimal time to buy is when everyone is selling and running for the hills, when it's a buyers market. Right now, the markets across the country are overheating and it's a sellers market. Sellers can demand all cash, a fast closing and get offers above asking price too. It doesn't mean you shouldn't be a buyer, only that it's significantly more difficult to find a good deal.
In addition, unless someone has a crystal ball, there isn't a surefire way to know when the next downturn will come about. It can be in a month or 2-3 years from now, no matter the dire predictions we constantly hear.
If an investor is savvy enough and has the means and patience to wait, potentially another 2-3 years or more, properties will be selling for steep discounts to what they are going for now and will put some of the best deals you can find now to shame. Warren Buffett is sitting on $122 billion in cash just waiting for the next opportunity. Buffett is very savvy, patient and disciplined to do so.
There are still deals out there and plenty of profit to be made with the current market conditions, just depends on your investment profile.
You missed a big hint on this post about a good off market deal on this post. The best deals are off market, but you have to find them or make them happen.
Tukwila, WA · Member since 2019 · 70 posts · 88 votes
7y
@Terry Lao I definitely get it. I am asking specifically about the actual process involved. Where are you generating lists? After you found a potentially seller (likely out of state owner tired of the headache and low return) who do you proceed with the sale/purchase? What is your financer source?