Why Refi During Next Market Correction??

[Dustin Sanders]

Hey BP,

Like many of you, I have been reading religiously about where the market currently is, the upcoming market trends,  & a potential market correction. A market correction maybe happening within 2-3 years or maybe it'll in 3-5 years. I've been seeing market corrections that people predict are catastrophic and many others who say it'll only be down 10-15%, who knows.

I also read a couple of articles with real estate "market experts" mentioning they would advise homebuyers/investors to purchase properties anyway they can now just to get in the game (without being overleveraged) and then refi once there is a market correction.

My question is, why would I refi during the next market correction? I already have interest rates that are sub 4% which compared to the 80s & 90s are pretty competitive. I understand rates will come down though so will my equity. Make it make sense please!

Thanks,

Dustin

[Andrew Postell]

@Dustin Sanders yeah, lots of assumptions here.  I've been doing this real estate investing thing for 20+ years now.  I've been through 3 major downturns in real estate.  Nothing is guaranteed and no one can predict with authority what will happen.  So we just continue to buy a best as we can and continue marching forward.  If I say that something terrible will happen - eventually I will be right.  Out of all of the investment products out there real estate is the most stable.  In it's 5,000 year history, it's never been worth $0.  Can't say that for stocks, tulips, beanie babies, silk or whatever other commodity that has been valuable through out the history of humanity.   Buying real estate has always made the most sense to me and that's why I purchased houses during the housing crises and even now.  It's all risky but this is the risk that most of us here feel comfortable with.  Hope all of that makes sense.