Preparing for Real estate crash!

[Jerry Cinor]

Good evening ladies and gents! A lot of season investors, and other people seems to talk about real estate crash is around the corner. How would you prepare for the next real estate market crash? Would you buy properties in the next few years? Or wait for the crash then get at deep discount? (if you believe it will crash in few years) Thanks in advance all answers/advice are welcome.

[Christopher Phillips]

@Jerry Cinor

A crash assumes that the assets are overvalued. That's not the case at the moment.

Real estate works on an 18 year cycle. The economy works on a 10 year cycle. They lag and lead each other.

At the moment, new construction has yet to recover from the previous bust (which was built on a pile of bad paper), due to the fact the labor left the market and never returned.

That has put pressure on demand for new homes and resale homes since what is being built has been on a slow pace.

In the meanwhile, rents continue to climb  due to lack of new construction and not enough inventory to meet demand for people that can afford to get out of rentals.

That being said, it doesn't matter the market. When the market is down, you can find deals everywhere. When it is up, you have to make the deals.

In either case, if the numbers work, it doesn't matter.