Buying at market peak?

[Jack Zhuang]

I read reports and experts saying the real estate market are approaching market peak in sales price in 2019. Price growth in my local market in SF Bay Area has defiantly slowed in 2019 Q1 compare to 2018 Q1. It seems like most experts are agreed the price will come down in the near future but they can't agree on how "near" is near. 

I've been looking forward to invest in small MF units near the Bay Area but I'm hesitate to buy at the market peak. What should I do? Need advice!

[Account Closed]

Originally posted by @Jack Zhuang:

I read reports and experts saying the real estate market are approaching market peak in sales price in 2019. Price growth in my local market in SF Bay Area has defiantly slowed in 2019 Q1 compare to 2018 Q1. It seems like most experts are agreed the price will come down in the near future but they can't agree on how "near" is near. 

I've been looking forward to invest in small MF units near the Bay Area but I'm hesitate to buy at the market peak. What should I do? Need advice!

Jack,

Bay Area Real estate is a competitive sport. The best players win. I didn’t realize owning real estate in the Bay Area is sexy until I’ve owned 10 apartment buildings with my partner. 😂😂😂

Let me give it straight to you. The people who say Bay Area Real Estate is expensive, no cash flow, blah blah blah, don’t have the know how to play in this league, or they have some 💩 to sell to you. Our market is one of the MOST lucrative real estate markets in the world. Millions and billions are made here, and people want to take their money to go and play elsewhere? I guess you and they haven’t had the opportunity to meet and talk to millionaires and billionaires who made their money HERE.

Once you’re a player in our market, you can get deals regardless of where we are in the cycle of the housing cycle. Then you will realize time in the market is as important as timing the market.

My partner and I bought 22 units last year in San Jose. We’re negotiating to buy 17 more units for $3.5M now. Then another lead just came in for over 20-unit portfolio in our market while I’m sitting on the balcony at Hyatt Regency hotel in Waikiki watching the waves. 

By the way, a buddy of mine just got in contract for a 6-unit bldg in SF for $1.65M. He thought the market has peaked since 2013 while he was watching my partner and I buying bldg after bldg since. He finally realized waiting comes at a cost. He got a decent deal though while others said no deals to be had...😜

Go figure it out and make it happen. Life waits for no one.

Aloha!