All Forum Posts by: Evan Rice

Be fearful when others are greedy and greedy when others are fearful. 

- Warren Buffet

I think investors are always 'buying' but it just depends on how many deals they're buying and how intently they're looking. 

I'm sure if your investor friend had a deal brought to them that fit their buy box and had the returns they're looking for...they'd buy it if they had the cash. 

But, it's a matter of competing at certain prices. I think multifamily right now is seeing too low of cap rates, at least for our buying strategy. 

So we're 'buying', but we're not making nearly as many offers as we have in the past.

@Evan Rice I’m buying but am currently in a bit of a holding pattern as I’m working to reposition my latest purchase, (1 week ago), and get started on the work needed there and get the management in place to get it turned around.

Deals are coming online in my area but not all of them are good cash flowing deals. I’m also looking for something for a relative that I’ll be managing for them as their market has gotten too expensive with huge tax increases.

I think now’s as good a time as I’m still in a lot of markets to continue buying as long as your deals still make sense according to your strategy.

I am currently not buying but mostly because I had bought a lot in the previous 2 years so I'm not in the rebuilding liquid capital phase. Prior to 6 months ago, I had been aggressively buying the previous 18 months because I had anticipated inflation would rise (guess I was right) and I viewed real estate as a safer investing that would grow my net-worth with high inflation speeding up the process in conjunction with the low interest rates that were available then. I was still always very cautious and particular about which properties I did invest in. 

As for now: I think we have seen the worst of inflation and I also think that interest rates will likely remain at where they are now for the foreseeable future (I'm personally hoping they go back down in the coming years but that's impossible to predict). Having said that, if I had cash to invest with right now, I would buy more multifamilies in the current market but I would not feel any rush to do so. If the right deal comes along that I think would be worth it, then I would jump on it but at the same time, I'd feel very comfortable walking away from a deal I wasn't completely happy with. I'm not too concerned about interest rates because if the deal cash flows, then it cash flows and I can always increase the cash flow in the future with a refinance if interest rates go back down. I think there they may still be a bit more of a pricing correction for real estate coming but there is also a strong possibility that real estate prices will resume rising in the near future due to continued supply shortages (although they are highly unlikely to resume rising again at the rate they had been throughout 2021). Even if the prices do correct further though, I wouldn't be concerned since rental prices have historically increased even during periods when property values decreased so as long as I don't intend on selling the property, the currently appraised value of a property I own doesn't affect me. Even though real estate dips, historically it has increased over the long-term so as long as I am willing to hold the property for at least 5 years, the probability of me needing to short sell a property is very low unless I really really really overpaid for the property. I think deals can be found in any market, just need to be selective and not rush into a deal. I'm a fan of the mantra: "time in the market is better than timing the market"

There is a wise old saying that goes "It's not about timing the market but rather time in the market". Get started now!