Is now the time to start investing?

Question

A few months ago I started to think seriously about starting to invest my money in real estate. I've listened to numerous bigger pockets podcasts, watched several webinars, and have read and recently ordered a few of the suggested books by Brandon Turner. I absolutely love Bigger Pockets, its mission, and the endless amount of information and tools it provides. I become more and more enticed with the real estate investment business everyday, and after every read, listen, ect. So to get to my question, is now the right time to get into this? With all the big talk of the upcoming "inevitable" recession, it scares me a little to get in now. I am without a doubt goint to invest, I'm just wondering if there is a bad time to get it, is it now, and how do you tell? Also I am particularly interested in the "BRRRR" method If that changes anything. Thanks all in advance!!!

Will Fraser · Answer

Welcome to the community @Dustin Maxson!  In my opinion now is the perfect time to invest because it is now.  There will ALWAYS be reasons to potentially wait (similar to the way there is always a good reason to go to the gym tomorrow) and after 2007/8 and how many people got caught unawares, there will always be scions and pundits standing on the streetcorners now preaching the darkness of the blackened skies.

True, a correction or downturn or Armageddon may be coming, and perhaps it will be the day after any of us buy the next investment, but here's the magic truth:  the market's high point before the collapse was in 2007 --> by 2017 the overall market (stocks) had reached a level of DOUBLE 2007's high.  So, right after 2007 the bottom fell out and it was really bad for what felt like forever, but within a decade the market so thoroughly "healed" that it was well above the pre-collapse heights.

In the words of some ancient Chinese proverb, or @Brandon Turner, "the best time to plant a tree is 30 years ago.  The next best time is today."  In a similar way the best time to get involved in REI has already passed, but the next best time is RIGHT NOW, not later.

That doesn't necessarily mean going out and buying a property on your own, or hauling off on a big-time flip to start out, but get involved in some way.  Partner with someone on a deal, make a small hard-money loan to a friend who is investing, or whatever else you can see as a good way to get started in the greatest dance there is.

Welcome to the team, Dustin!

Doug Smith · Answer

We started Caste Rock right when the market was tanking the last time. It opened up some fantastic opportunities for us to pick up distressed deals at fantastic prices. Do I think we'll see a correction at some point? Sure, but I'm not seeing the same economic indicators that I did in 2005 & 2006 that would lead me to believe that any upcoming correction will be as severe as it was the last time. We're being cautious and taking a shorter-term approach to the portfolios right now, but it should be a great time to get involved if you are smart about it. I hope that helps a bit.