Go with the flow or Avoid the hype like the plague

[Tyler Pearson]

It is no question that we are in the middle of an economic boom right now; everyone seems to be doing well. With that being said, the Phoenix housing market has taken off into outer space; in real-world terms, the market is incredibly hot. Huge shortage of housing, houses flying off the shelves in 10 days or less at full list price. Now, as most people on this site, I am an investor and want to invest in an intelligent manner so I don't end up a bafoon and underwater somehow. Everything that I have ever read about real estate is that when the market is a seller's market, hold out. Avoid buying, wait, stack up the cash reserves, etc. for the catchy cliches that we all use. Okay I understand that. If I do that, then I continue renting and realistically throwing money down the drain (as an investor). I am caught in the middle of whether to continue looking and seriously consider buying, putting in offers, etc. if what I really should do is hold out. If anyone can shed some light or has been through a similar experience, your input is greatly appreciated.

Cheers!

[Jim K.]

Originally posted by @Tyler Pearson:

Now, as most people on this site, I am an investor and want to invest in an intelligent manner so I don't end up a bafoon and underwater somehow.

The pedant in me wants to tweak your nose about your spelling of the word "buffoon." That being said, one of the things you're going to have to get used to in order to survive in this game is being laughed at. I did my first two flips for free for a girl who was manipulating me. I may be the biggest buffoon you've ever met. And that's fine.

Who are you worried is going to laugh at you and call you stupid? Keyboard cowboys on Bigger Pockets? Other investors in your local REIA? What do they matter? Who died and made all these people the arbiters of good sense? Ultimately, you have to accept that you're gonna take some serious lumps. You're not going to go into this as a beautiful, pristine snowflake and come out an even prettier snowflake. You will take a beating or two or ten, it's going to hurt, and there will be long stretches when you have to accept yourself as a laughingstock and a failure, and do something different.

Read, study, learn. But take on a project on a small scale somewhere to do some practical learning. Be prepared to lose some money. It happens to everyone, especially the ones it hasn't happened to yet.