What Should a New Investor do In These Times?

What Should a New Investor do In These Times?

Rental Property Investor · Columbus, OH · Member since 2021 · 231 posts · 188 votes

Hello all!


I am a new investor looking to move to Columbus, OH soon and purchase my first property via house-hacking. However, I am not sure what to expect with this market as in waiting for prices to drop or buying asap. Interest rates are rising ans I feel like the RE market has some uncertainty surrounding it at the moment. I want to be smart with the minimal cash that I have and make sure that I am buying a great deal to protect myself. I don’t want to dive in head first and then watch the market crash. What are some ways that I can enter this market and when should I enter the market? All advice is greatly appreciated! 

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Joe VilleneuvePro Member
Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
4y

The "times" will impact all deals all the time, depending on the "times".  Don't invest or not invest based on the "times"...invest in RE based on the deal presented to you, at that "time".

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  • Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    4y

    "These times "  are better than when I bought my first house with 11.5% , and my second with 8.75%  .  They are paid for now . My personal residence was 6.5% and I am here today , now with a 3% 15 year with 5 to go .   

    There is never a bad time to buy . 

  • Investor · Dallas, TX · Member since 2018 · 9 posts · 0 votes
    4y

    Do you have an amazing realtor who invests and knows the area? This can be key to finding a great deal and avoiding unnecessary risks and problem areas. I suggest defining your purchase requirements in detail and write them down. example SFR, 1000 sqft or larger, 3 bedroom, 2 bath. Include your cashflow minimum, eg $400 a month. Use a Mortgage calculator at calculator.net or other site. Again, work with a top realtor, this can take time to find, even years. Network with a local real estate group in your the area, such as a meetup group. Read books on real estate! A lot of them. I personally found attening a meetup group was a tremendous leverage to growing and picked up my first rental that way. It helps to be in the right group of people tho, like other landlords or similar investors.

    As for entering the market, enter ASAP! Rates are rising. Get started investing. It may end up taking you longer than you thought due to other unseen challenges.  Again, work with a realtor and or your group to find deals.  If it cash flows and meets your defined requirements then go for it!  

    Regards, 

    DP

  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    4y
    Quote from @Matthew Paul:

    "These times "  are better than when I bought my first house with 11.5% , and my second with 8.75%  .  They are paid for now . My personal residence was 6.5% and I am here today , now with a 3% 15 year with 5 to go .   

    "There is never a bad time to buy ". 

    I'll second that, except to add, "...just bad deals".
  • Rental Property Investor · Columbus, OH · Member since 2021 · 231 posts · 188 votes
    4y
    Quote from @James Hamling:

    There is always going to be something @Thomas O'Donnell, some fear of now vs later because for every player out on the field making the actions to score the TD's, there is 10,000 sitting in the stands watching yelling out what those players "should" be doing, and guess how many points they score from those seats.... 

    Everything in REI boiled down to the simplest possible explanation is *"Don't try to put square pegs in round holes". A deal is a deal, you'll know it when you see it. Ignore the market, ignore the times, tune it all out, turn it all off, and just simply do the analysis of that deal and answer the question, is it or isn't it a deal.

    When it comes to timing the market, have you ever heard the sorties of all the people who jumped in buying properties in '09', because they had been waiting knowing the price drop was coming? No, because there isn't any. Or how about all the people who went hog-wild buying everything in '12-18' because they "knew" values were going to take massive jumps up????? No, again.    If you can time the market for these kinds of moves, it's a league of you and you alone, think about that, are you better then literally every human alive to peg such a thing?     So right there we know "timing the market" is a complete mirage, it does not exist, it's what people riding the bench say to make an excuse for why they are not doing anything vs the truth of admitting they don't know what to do, or are letting fear win over work. 

    Don't force it, run the numbers, act like an investor and not a gambler. 


     Love this!

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