waiting until the next crash?

[Jonathan Beemer]

Hi BP,
what are your thoughts about saving money until the next crash to buy real estate?
is that the wrong answer? because of its undetermined time?
would it be wise to invest part of the money i have in real estate but save a part of what i have and build it until the right time to buy?
maybe work slowly into the real estate market waiting for the time to buy and then extinguish all that i have upon the next crash?

thank you!

[Adam Fout]

Jonathan Beemer

It makes sense to buy in a down market but what happens if the market stays up for 2, 3, or 5 years? There are deals to be had now and you would be missing out on years of appreciation, loan pay down and profits. Good deals may be harder to come by, but if you put the work in, you will find them.

I honestly feel that trying to time the market is not the best strategy. Buy right, manage properly, hold for cash flow and do not wait for a market crash. Waiting is just an excuse not to take action. If you find the right deal, a market crash will not affect your cash flow. If and when the market does come down, use creative financing, like the equity in your properties, to purchase another property at a huge discount.