Warren Buffett had a great line. He said the secret to his success was that when other people became afraid, he got greedy, and when they got greedy, he became afraid. This is a week when people would be jumping out of windows on Wall Street, if the windows actually opened. In other words, this is a great time to get greedy.
Keep Cash on Hand for Great Opportunities!
However, this is obviously not a good time to get overextended! So who’s sitting pretty right now? The people who have a significant amount of cash they can invest. You need to have some serious coin both to buy the properties (because getting no-money-down mortgages at the moment might be, erm, problematic) and to hold them (because you can’t count on finding tenants right away).
And any decent deal you make this year is going to pay off so much more down the line. People still want to live in the United States and in particular, in certain states. Many of these got hit hardest by the housing collapse. Actually, I’m thinking of one in particular – Florida. Florida, I believe, is going to come back big time. Remember after all this passes, they will still have sunny weather, a good business climate, and a growing population.