Getting Started and How to Find out what direction to go in

[Blake C.]

Hi All,

I am a new investor and have a few questions that I would greatly appreciate having answered.

We are in a great market right now. I feel like I'm actually picking a not so opportune time to get into buy/hold investments.

my goals are $100,000 in gross rent per year in 10 years.

I plan on making 10-12 purchases and holding. I will be using much of my income to help pay off the properties as closer to that 10 year mark. I plan on having the money all at once before I pay off an individual property and then sort of snowballing into the next property.

My market is HOT. It's doing great and I get a little nervous about buying and holding.

As for now, I am thinking doing 20% down on a 30yr.

I understand the argument of "who cares if you buy now or in a recession when you are looking at holding for 10 years/15yrs/30 etc.".

What are your thoughts? Would it be better to wait for another correction? Would it be better to hedge and buy a couple per year?

Thanks for any advice!

[Eleena de Lisser]

Originally posted by @Blake C.:

Hi All,
my goals are $100,000 in gross rent per year in 10 years.Would it be better to wait for another correction? Would it be better to hedge and buy a couple per year?

Blake, if you try to time the market you may find yourself waiting indefinitely for the "right time" to invest. Tomorrow may never come.

If your local market is getting overheated (i.e. overpriced), start looking for another market that fits your investment criteria. By the way, do you have any criteria beyond gross rent?

Continue to educate yourself about real estate investing, network like crazy with other investors and join your local REIA. Soak up as much knowledge as you can and build your real estate investing team of experienced professionals. Tap into their expertise and knowledge of your real estate market to avoid making rookie mistakes.

Establish your own investment criteria. Pick a market, learn a market, do your research, run the numbers, etc. Once you have a solid foundation about what to look for, what to avoid, etc., you can then go looking for the type of real estate that will fit your criteria and help you reach your financial goal. But waiting for another correction? Nah, man, that's for the birds.

"Inaction breeds doubt and fear. Action breeds confidence and courage. If you want to conquer fear, do not sit home and think about it. Go out and get busy." - Dale Carnegie