How will the economy impact new purchases?

Question

As a new investor, I am concerned about the current economy and my buying potential of multi units.  How will the next 12 months be in the market.  Can I get some feedback from seasoned investors in the game?

Joseph Coleman · Answer

@Gary Grant Are you prepared to purchase with cash or a large down payment? If inflation and interest rates continue to rise, your ability to use cheap debt to fund deals will decrease but there will always be deals - you just have to find them. I also highly recommend On The Market

Gary Grant · Answer

Thank you all for all your comments.  I really like the feedback.

Bruce D. Kowal · Answer

Sit on your cash.  Wait for the the Other Guy, The Unlucky Investor, to scream in pain, and swoop down and buy an income producing property for all cash.  Right away, you will get a good ROI.  And you will tell that story for a long time to come. . .

Charles Granja · Answer

Seasoned investors will tell you to buy but also have 500 rental properties and access to a plethora of resources that enable them to purchase at steep discounts. They also make less mistakes. They are leveraged and protected by their previous purchases after the 2008 crash. In a market with this much volatility cash is extremely relevant. You could lose 7-8% from inflation, 30-80% of your stock portfolio (current), or 50-100k on a 250k investment with a 4-1 leveraged position (near future). Make sure you understand the risks, most would say the state of the market is very concerning and that we are the top of the market cycle.

Micah Lynell Mortag · Answer

I would take a deeper looking into the stats for the specific market you are wanting to invest.  The news can be scary, but the real numbers in my markets are much less scary! lol Look at the trends and adjust your numbers accordingly.

I would also highly recommend Bigger Pocket's "On the Market" newest podcast.  It's GREAT!  I just listened to an episode last week that answered this question. Check out "How to Profit in a Recession"Hope this helps :)