Is it right time for a newbie to enter into Real estate invest?

Question

Hello,

My name is Ashok. I am a eager to renter into Real estate. My market is tampa, fl. I have been learning by listening to podcast and reading forums on bigger pockets for a little while. Great Info. Thanks for all that post and contribute in knowledge sharing.

The main questions I have are

1) is this the right time for a starter who wants to invest in real estate? 2) if so where to exactly start? my interests are in single and multi family rentals and land.

I want to be a serious investor but not sure given the market and general economic conditions.

Any thoughts, advice and connections are greatly appreciated

🙏

Alex Hernandez · Answer

There never really is a right time due to the financial risks involved currently interest rates are low so that can be appealing but more importantly really look at market that you're thinking of buying into what did it look like before the pandemic during the pandemic and now and do you think it'll continue trending positive after interest rate hikes take effect I'm currently managing properties  in Ocala fl and I think our hot market won't be highly affected by interest rates hikes due to a critically low inventory vs the demand we have of people moving into ocala

Justin Windham · Answer

@Ashok Nimmagadda

It’s great to have you here!

If you want to invest into real estate, this site is awesome!

If you are looking to connect with other members near you, or want to learn from people in a specific area you’d like to invest in, or have a desire to find people interested in certain topics, you could use the search feature here: https://www.biggerpockets.com/search/users

I really like the alerts feature that can quickly guide you to current topics that might interest you: http://www.biggerpockets.com/alerts

Michael Haynes · Answer

Hello Ashok N. in Tampa. There is an easy way to answer your own question, along with everyone else who asks this same question all the time anywhere in the USA...Go learn how to do Real Estate Searches on Zillow.com. Look at every type of property For Sale, from Houses to Townhomes to Condos to Apartments to Manufactured to Multi-family to Land. Qualify the Search from $0.00 dollars to $500,000. Any address in Tampa to start the page...go to the upper right hand corner and press the X to get the open chart of Tampa. Move the chart around and look at all the circles with property For Sale. Mark down the price and that you can afford. Expand the Search area to anywhere in the State. Mark down the properties that would fit your permeters. Then, install Google Earth on your computer and learn how to use it to get birds eye views of the properties that are on your list. Home into and around them and learn how to get down to street views and see what the neighborhood looks like. If you still think that Buying a property at this time is a good thing and it is someplace where you would live if you have to...then, drive the neighborhood and check it out. You did not say whether you own a Home. Do you know the Tax Laws on Real Estate? The safest bet is to buy a fixer upper and make it your Homestead for two years before you think of Selling as your Residence, Tax-free. Got it?

Clay Lehman · Answer

@Ashok Nimmagadda it is great that you are preparing yourself to invest and you are asking the right questions.  I agree with what has been said previously that it is very hard to time the market.  But your concern makes great sense.  The real estate market in central Florida (I am in Ocala) has appreciated for about 10 years.  Real estate typically cycles every 10-12 years.  It won't always go up, that is a universal truth, however, it is hard to know what will cause a downturn.  Also, many of us have shades of 2008 crash in our minds, but it is highly unlikely that the next down turn will look anything like that.  Lending standards have remained tight and the demand we are seeing in Florida is more real than in 05-08, meaning it is owner occupants.  In the previous crash, homes would flip 2-3 times before anyone would actually occupy them.

I think the most important thing to do as an investor is to maintain discipline to your numbers.  Do not get caught up in a frenzy and set aside the numbers you are comfortable with.  If a deal doesn't pencil based on good fundamentals, don't talk your self into making it happen.  That is a recipe for disaster.

Good luck!!!

Kristina Kuba · Answer

Just like the stock market... time in the market beats timing the market.  Tampa Bay is land locked on 2 or 3 sides depending on how you look at it and they aren't building any more land!

Jason Bertoli · Answer

I think it depends on the market, but if you're in it for the long haul (which it sounds like you are) I'd say do you homework, secure your financing look over the numbers and take the leap. Real estate is full of people still on the sidelines. Good luck!

Wale Lawal · Answer

@Ashok Nimmagadda, Hi, There's isn't a right time, it really depends on you because you know yourself better than anyone else. Do some research and clearly define what you want and the best path or strategies that can get youthere.Goodluck and go make it happen

Dillon Cook · Answer

There are a lot of differing opinions on economics - inflation and interest rates specifically. I think housing likely will not come down anytime soon. I don't think the fed can rise interest rates more than once this year. I believe real inflation is already between 7-10%.  Inflation will help wipe away good debt. I believe it's a good time. If you're waiting for a crash, you may not be very lucky. Who knows if the fed messes with the economy too much, and we see a little hyper inflation.

Is it right time for a newbie to enter into Real estate invest?

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