Real Estate Market

7 Replies

I am interested in taking real estate as a career but am scared that the market can crash at any time. Are there any ways an investor can keep himself/herself from getting negatively impacted from a market crash? I am very cautious about real estate due to the market having the potential to be very unstable. 

Martel, you need to learn the basics of real estate to understand property values and your market. You need to be nimble, react quickly to opportunities and you need to understand the basics in order to recognize opportunities. 

Then you'll see that it doesn't matter what the market does, if one area crashes another area compensates, homes always sell, properties still rent, people have to live somewhere regardless of what the Fed does or how many properties are dumped on the market, there is always opportunity. 

Those who lose in the market are not diversified in their knowledge, being stuck in one niche or another can be a short life span in business. High interest rates in the 80's killed off some contractors, it was a great time for landlords. 

While most of the buzz by "investors" here on BP is about buying low, money is made in real estate by adding value, building equity, buying low is not the only answer to a good deal.  I've paid market prices and more than doubled my money in a year and it really didn't matter what the market was doing, it's what you can do with a property that counts. 

Good luck in '16! :) 

Originally posted by @Bill Gulley :

Martel, you need to learn the basics of real estate to understand property values and your market. You need to be nimble, react quickly to opportunities and you need to understand the basics in order to recognize opportunities. 

Then you'll see that it doesn't matter what the market does, if one area crashes another area compensates, homes always sell, properties still rent, people have to live somewhere regardless of what the Fed does or how many properties are dumped on the market, there is always opportunity. 

Those who lose in the market are not diversified in their knowledge, being stuck in one niche or another can be a short life span in business. High interest rates in the 80's killed off some contractors, it was a great time for landlords. 

While most of the buzz by "investors" here on BP is about buying low, money is made in real estate by adding value, building equity, buying low is not the only answer to a good deal.  I've paid market prices and more than doubled my money in a year and it really didn't matter what the market was doing, it's what you can do with a property that counts. 

Good luck in '16! :) 

 That makes complete sense! Thank you for clarifying it to me!

Originally posted by @Brian Gibbons :

@Martel Metellus

The stock market is much more volatile than real estate

Buying modest real estate rentals that cash flow in good safe neighborhoods is much safer than stocks :)

 That is very true now that I think about it! Thank you!

I've read a few books about real estate and basic financial improvement.   To my surprise the books I read were very motivational.  You can do anything you set your mind to.

I was also scared to rent in my current area because there was so much competition.  So I rolled up my sleeves and made my house the nicest on the block.  In return,  I had too many responses and should have raised my rent.  

Lastly, I wanted to reinforce what the others said.  The rental market is stabil. While stocks and home prices have been fluctuating,  the rental market did not fluctuate.  Rental prices slowly climbed as they always have.

Listen to your fear and let it drive your questions and thurst for knowledge but don't run away.  You can do it!

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