Everyone is saying its a bad time to get into real estate?

Member since 2019 · 8 posts · 6 votes

Hi all, I've been doing some research lately on the real estate market and most professionals on YouTube and articles being written are on the pessimistic side of things. Most of the advice out there right now is that it is a terrible time to buy since everything is over valued. I hear prices are going to come down and it would be better to wait for them to come down rather than buying now. I would love to hear the opinion of some of you in this forum and website. Thanks

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Curtis YoderPro Member

Rental Property Investor · Tulsa, OK · Member since 2014 · 241 posts · 187 votes

I have heard that same thing my entire career. In my experience you should always be buying. There are deals out there, just a little harder to find this year. Do your homework, find a deal or two that cash flow, and never stop buying. You cannot time the market, no one can.

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Suzanne PlayerPro Member
Attorney · New York City / Long Island, NY · Member since 2020 · 597 posts · 248 votes
4y
@Bill B. I could not agree more - consider the background and expertise (or lack thereof) of the person you are thinking of taking advice from. So many people think that "the average person" is qualified to give an opinion on any topic whatsoever.
In my experience, the people with the most expertise & experience in a given field tend to think longer, ask more questions, & qualify their opinions
516-503-7959
1 Reply
Bud Gaffney
Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
4y
@Serge DuLaudAllemans lol. I’m sorry and not being cocky. I just can’t help but laugh. Please for the love of Jesus…
DO NOT LISTEN TO PEOPLE WHO ARE NOT IN THE GAME.
PS: Get into Real Estate Investing. And leave those naysayers in the dust. :)
2 Reply
Caleb Bryant
Rental Property Investor · Huntsville, AL · Member since 2015 · 401 posts · 309 votes
4y
The cool thing about real estate is there is always an opportunity. When one technique doesn't work as well, there is often a new one to pivot to with great success. One strategy I've seen picking up steam in my market is creative finance, sub-to deals and similar strategies, while wholesaling has been slower as prices compress some. After moving 100ish wholesales last year, I know they won't be as easy this year so I'll just be holding more of what comes through. I'd say talk to people (especially those who are in your target investment area) who are having success right now and take note of their models, then go make it happen!
2 Reply
Joe S.Pro Member
Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
4y
Yes it’s a really bad time to buy real estate plz help spread the word…
4 Reply
Dave Skow
Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
4y
@Serge DuLaudAllemans- there is no perfect time ..there is no way anyone can time it right either - look for opportunities - if they make sense - react ...if they dont - dont react but continue to watch
0 Reply
Suzanne PlayerPro Member
Attorney · New York City / Long Island, NY · Member since 2020 · 597 posts · 248 votes
4y
@Austin Largusa So true. Perhaps today's "idiot" is tomorrow's genius
516-503-7959
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Austin Largusa
Investor · San Francisco Bay Area · Member since 2019 · 119 posts · 79 votes
4y
Quote from @Suzanne Player:

@Austin Largusa So true. Perhaps today's "idiot" is tomorrow's genius

Oooh i like how you said that
0 Reply
Steven Foster Wilson
Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
4y
Quote from @Serge DuLaudAllemans:

Hi all, I've been doing some research lately on the real estate market and most professionals on YouTube and articles being written are on the pessimistic side of things. Most of the advice out there right now is that it is a terrible time to buy since everything is over valued. I hear prices are going to come down and it would be better to wait for them to come down rather than buying now. I would love to hear the opinion of some of you in this forum and website. Thanks

I think if you live in this fear or expectation that things will come down then you will miss out on good deals. There are still plenty of great deals to be had, you just have to find them. If the numbers make sense and it is in the areas I want then I go for it. I am not slowing down at all. I want to just keep the ball rolling.
0 Reply
Bryan Noth
Realtor · Austin, TX · Member since 2016 · 1k+ posts · 1k+ votes
4y
"Be fearful when others are greedy, and greedy when others are fearful"

-Warren Buffet

@Caleb Bryant @Serge DuLaudAllemans @Austin Largusa
1 Reply
Jennifer Jo McCallonBusiness Member
Member since 2020 · 62 posts · 59 votes
4y
If it cash flows, buy it. If you can buy a duplex for 20-25% down and the rents are enough to cover the mortgage, taxes, insurance, maintenance, vacancy and there is enough left over to cash flow, why would you wait? That is like waiting to get a job until jobs pay more.
[email protected]510-545-6390
2 Reply
Conrad Cortes
Real Estate Agent · Houston, TX · Member since 2020 · 56 posts · 34 votes
4y
@Serge DuLaudAllemans
I’ve never had anyone say now is the time to buy since I’ve started and it’s been working out well so far. There will always be loud ones saying the end is near.
0 Reply
Account Closed
Property Manager · Las Vegas, NV · Member since 2017 · 108 posts · 149 votes
4y
@Bud Gaffney I believe due diligence in any market is key. For example, in Las Vegas some single family homes that were selling for $460-$475k in Q1 of 2022 may very well be selling for $380k - $400 in the next 12-18 months. One of the main reasons is that institutional investors have drastically lowered their purchase threshold by more than $50k in the last 30-45 days. I follow institutional investors in the Las Vegas market closely and neighborhoods they were previously bidding up are now in a holding pattern. With less competition the primary buyer will have more inventory to select from and Sellers will slowly decrease list price if their house sits on the market too long.
1 Reply
Jeff SchemmelBusiness Member
Real Estate Agent · Saint Paul, MN · Member since 2014 · 384 posts · 401 votes
4y
Google "average sales price of homes sold in the U.S. last 30 years". you'll see a chart, and that chart will tell you all you need to know about timing. Just pick a strategy and get started
2 Reply
Louis P Lessor
Janesville WI · Member since 2019 · 55 posts · 36 votes
4y
"Do yourself a favor, chart where the sheeple herd is moving, and go opposite direction."

This is so true, thinking five moves ahead of everyone else and spoting trends will pay in big ways.

0 Reply
Jose JacobPro Member
Investor · 11040 · Member since 2019 · 188 posts · 111 votes
4y
Quote from @Serge DuLaudAllemans:

Hi all, I've been doing some research lately on the real estate market and most professionals on YouTube and articles being written are on the pessimistic side of things. Most of the advice out there right now is that it is a terrible time to buy since everything is over valued. I hear prices are going to come down and it would be better to wait for them to come down rather than buying now. I would love to hear the opinion of some of you in this forum and website. Thanks

Hi Serge,
Are you trying to buy or flip or want to become a real estate agent ? It all depends what you are trying to do. It all depends on numbers if you are trying to fix and flip. Or depends on ROI if you planning to buy and hold.
718-200-6100
0 Reply
Mike Dymski
Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
4y
Quote from @Jay Hinrichs:

Quote from @Mike Dymski:

Shut off the "news" and social media...it's poison...and turn on books and podcasts from successful investors.

when I had my HML company I had a very conservative CFO and a minor partner that was/is an attorney.. if I let them run the deal we would never have made a loan.. I would be guys you cant charge what a HML charges and expect these files to look like the absolute best files a bank would give to their premier borrowers LOL got to shut out the noise and go with experience and common sense. Although to be totally Frank I thought we would hit this stage of the economy fall of 2018.. glad I kept going and did not listen to myself LOL Although we did move to cash and limited our leverage a bunch so I like where we are at now ..

entrepreneur vs. employee mindset
1 Reply
Bud Gaffney
Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
4y
Quote from @Account Closed:

@Bud Gaffney I believe due diligence in any market is key. For example, in Las Vegas some single family homes that were selling for $460-$475k in Q1 of 2022 may very well be selling for $380k - $400 in the next 12-18 months. One of the main reasons is that institutional investors have drastically lowered their purchase threshold by more than $50k in the last 30-45 days. I follow institutional investors in the Las Vegas market closely and neighborhoods they were previously bidding up are now in a holding pattern. With less competition the primary buyer will have more inventory to select from and Sellers will slowly decrease list price if their house sits on the market too long.

Right there with you Heidi!
0 Reply
Suzanne PlayerPro Member
Attorney · New York City / Long Island, NY · Member since 2020 · 597 posts · 248 votes
4y
Often when weighing 2 options, I ask myself, "If I were to make the wrong prediction, which is the better situation to be in?"

Situation 1: I buy now, & the market goes down immediately after. It just means I might have gotten something cheaper next year, but eventually the prices rise again. If I have cash reserves & other safety nets in place, I can ride it out.
Situation 2: I don't buy, & prices continue to rise sharply. It may mean I'm out of a particular market for a long time, have to put together more cash, and/or start over researching other markets or property types.
Situation 1 is better, so a wrong prediction about the market would make less of a difference to me
516-503-7959
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Account Closed
Property Manager · Las Vegas, NV · Member since 2017 · 108 posts · 149 votes
4y
PSA
Get this...for anyone questioning whether iBuyers (Open Door, etc.) have had an impact on the residential real estate market the last two years they have! iBuyers, along with institutional investors, have bid up housing prices in Las Vegas and Henderson. Now they are decreasing their list prices below what they purchased!?!? I've previously mentioned their laser focus on residential real estate was reckless and now is the time of reckoning.
Here is a real world Las Vegas example on the market: 8177 Coyado Street, Las Vegas, Nevada 89123
Open Door purchased May 9th, 2022 for $742,100. They've lowered their list price as follows:
$640,000 DOWN $682,000 -> $640,000 08/04/2022
$682,000 DOWN $715,000 -> $682,000 07/21/2022
$715,000 DOWN $737,000 -> $715,000 07/07/2022
$737,000 DOWN $754,000 -> $737,000 06/23/2022
$754,000 DOWN $790,000 -> $754,000 06/10/2022
$790,000 NEW -> A 05/26/2022
For anyone starting out in residential real estate (in any market) do your due diligence on the impact of iBuyers, institutional buyers, pandemic migration (if it's sustainable long-term) before you start investing in a certain city!
I keep being told that the residential real estate market boomed because of houses being underbuilt during the last recession. While I believe that is partially true I believe the involvement of iBuyers, institutional investors and pandemic migration have had a stronger overall impact on entry level prices. The media and government will wise up to this over the next 2-3 years and it will become a hot topic politically. The iBuyers and institutional investors will become the new Wall Street/Main Street.
1 Reply
Ryan KellyBusiness Member
Real Estate Broker · Austin, TX · Member since 2018 · 1k+ posts · 1k+ votes
4y
@Serge DuLaudAllemans you will never know when a market bottoms out until you can see it clearly in the rearview mirror. Are you a capital gains investor or a cash flow investor? Capital gains investors are just trying to buy low and sell high, just like Wall Street. A cash flow investor doesn't primarily care about the direction of the market, but rather if a property is a good "investment" because it can generate cash flow and stay stable during volatile times. I recommend deciding which type of investor you are first.
[email protected]512-674-5478
Ryan Kelly Group - Keller Williams5112 Reviews
Website View Page
0 Reply
Bradley Swartz
Accountant · Shrewsbury, MA · Member since 2020 · 6 posts · 2 votes
4y
@Serge DuLaudAllemans ....IMHO as long as your numbers make sense on a property by property analysis, based on your risk and reward criteria, its always a good time to buy.
0 Reply
Luka Milicevic
Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
4y
This is a terrible time to buy real estate, and no one should be buying right now.
If you come across any deals send them to me instead.
1 Reply
Matt Greer
Real Estate Agent · Mesa, AZ · Member since 2017 · 237 posts · 170 votes
4y
Warren Buffett said when people are greedy be scared and when people are scared be greedy. We're getting our buyer clients some pretty awesome deals right now because sellers are starting to panic. My bigger investors are building up their long term buy and hold portfolios right now. They plan on buying all the way down and basically dollar cost averaging. Just make sure you have a plan and that the numbers work out.
0 Reply
Matt Bishop
Rental Property Investor · Dallas, TX · Member since 2020 · 161 posts · 88 votes
4y
@Jay Hinrichs, they will see they missed the boat. That today was the bottom of the market and they missed it. I remember in the 1970s, "everyone" saying the market has peaked and can never go higher.
0 Reply
Kate Barry
Real Estate Agent · Vermont and New Hampshire · Member since 2019 · 117 posts · 78 votes
4y
Who is everyone? No one here I think! Right now is the PERFECT time to get in. Some markets are softening and interest rates are coming back down.
People will tell you its a bad time when prices are high
People will tell you its a bad time when prices are low
Don't listen to the noise just listen to the experts, join meet ups, surround yourself with people who are actually doing investing. Work for a top producing real estate team or property management company to really learn the business. Then develop your strategy and get a deal. If you try to time the market or wait for everyone to say "Oh now is the best time to invest!" it will either never happen or you'll be getting in when everyone else is. You want to look where no one else is looking and you want to get really good at doing something hard because then you reduce the competition around you and then it will seem like magic, suddenly you have more deals than you can manage.
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