Why Waiting For The Right Time To Invest Is Usually A Bad Idea

[Brian Ellwood]

Are you waiting to see what the RE market does before you hop in and start investing?

This is an objection I hear frequently right now from would-be investors.

There’s a lot of uncertainty about the direction the market is going to take over the next 1-2 years.

We were already poised for a correction (after a record bull run)...

Now, when you throw a pandemic into the mix…

How can we ever know what’s around the corner?

In some ways, I can see the sense in that.

Historically, successful investors buy on the “dips”...

They wait until everything is on sale…

Then they clean house.

But, most of the people I talk to who are waiting…

Aren’t really an investor yet at all.

In fact, they’re really just at the stages of “figuring it all out”.

There’s a lot to figure out when you’re brand new.

You need to pick an amazing cashflow market to invest in.

You need to learn about the good zip codes and neighborhoods in that market.

You need to build a trustworthy team of contractors, property managers, inspectors, etc.

You need to line up multiple sources of funding to buy your deals.

You need to learn how to find off-market, discount properties.

You need to learn how to analyze those properties…

And make offers (both traditional and seller financing).

You need to develop an airtight process for managing contractors long distance.

You need to setup your LLC, bank account, bookkeeping, find a good property analysis software…

The list goes on.

Now, back to the people I talk to who are “waiting to invest”...

Not only do most of them not have hardly ANY of these things figured out…

But they don’t even know that they SHOULD be figuring them out!

Imagine you’re at a track and you’re watching a 100 meter race.

You see the athletes at the starting line..

Kneeling down and poised to explode.

They’re ripped and in shape..

They’re wearing all the right clothes and shoes…

They’ve been training for this event for many months.

The gun goes off..

And they immediately explode down the track towards the finish line.

In this example, the “gun going off” represents the market taking a large dip…

Meaning it’s time to really start buying.

The runners represent the people who have checked off all of the above boxes I mentioned earlier…

They’ve picked their market, build their team, found deals, money, learned how to offer, etc.

They are poised and ready to CLEAN UP.

The finish line on the track represents achieving the goal of financial freedom through passive income.

Now, are you one of those runners, in shape and ready?

Are you on the track at all?

Or are you chillin’ in the bleachers, eating popcorn and checking Instagram? ;)

Also, if you’re still going to wait…

Tell me what you’re going to do in the MEANTIME that’s a better alternative.

If you’re going to sit out for 12 months, what are you specifically going to do during that 12 months instead?

Why is that choice better?

If you already have a market, team, knowledge, money, AND something you’re going to “while you’re waiting” that’s as good or better…

Then sure, go ahead and wait. I don’t have a huge problem with that.

Otherwise, you’re literally losing money by not diving in now.

Another thing to consider...

The safety of properties bought at 70% ARV that are positive cashflowing, providing enormous tax write offs..

And cost you a mortgage payment of maybe $350/month to maintain..

Are NOT that risky.

I buy houses for 50K that are worth 70K and rent for $850/month.

How much downside do I really have on those?

Especially when they’re in a rising market?

One final question for those who still want to wait….

Had you already been “waiting to invest” prior to Coronavirus...but for a different reason?

Is waiting just a PATTERN that has shown up in your life over and over?

(This is normal and OK, you’re not broken...but if you don’t wake up to that and do something about it, it will never go away)

I hope this post has helped you view "waiting" in a whole new light.

To your freedom,

Brian