How would the Stock Market crash have an effect on RE Investors?

[Simon Elwardany]

Should I invest in Southern CA Properties during the stock market crash or NOT??

[Aaron Knoll]

I've only been through two cycles before, but here's what I've observed last time:

After a crash, it takes up to a year for people to lose jobs. 

After job loss, it takes up to another year for them to fail to sell homes and start to default. 

After defaulting, it takes another year for the bank to foreclose and auction off your home.

It's not like property values tanked immediately in 2008: it's just that no one was buying and no one was selling because no one could get a mortgage. It took until 2011 when foreclosures were flooding America for the MLS prices to start to come down.

Before we get hasty, this may not be the "big crash" everyone's been waiting for. Yes, everyone knows stocks are overvalued and China is having trouble. But the US is (currently) the lone bright spot in the world economy (aside from places like Switzerland), and we're still recovering from the last recession...

That said, a foreclosure is a foreclosure. If you can get a good deal in CA, numbers work and vacancy isn't a huge risk, go for it regardless of what the stock market is doing.