Market Correction? I Say "So What"!
There seems to be some fear among investors regarding a possible market correction. They say this slow recovery is a new "bubble" doomed to burst in the not too distant future. It's this fear that seems to paralyze would be investors and prevent many from taking advantage of current opportunities. I must admit I don't really understand it.
I'm taking advantage of some great opportunities available today. For example, our company is on the brink of purchasing 98 investment properties in Michigan. Because we buy in bulk we pass on the savings to others, often selling them $10K -$20K below FMV. If the market where to suddenly drop, our investors would still be sitting pretty knowing they paid far less than current prices and still collecting rent.
Personally, I have a number of rental units that provide me with a comfortable lifestyle. So I asked myself how a possible shift or "correction" in the real estate market would affect me. The answer is clear, it wouldn't.
So what if the value of my rentals dropped. I've always known that the value of ones property is only worth what someone is willing to pay for it. I don't hang my hat on it, never have. Regardless of what happens in the market, I'm still collecting the same rent. It does not affect my income at all.
In fact, the only time a market "shift" affects an investor is when they need to sell. While I'm getting steady passive income, there's no need to sell. Historically, real estate has always recovered, so it's just a matter of being patient.