Many of them will crash and burn.

Hindsight is 20/20 except this time we have past experience to tell us what the future is likely to hold since we saw stimulus packages in last housing crash.

We've had major problems before and in recent history (stock market crashes, housing collapse, etc).

After the crash, it didn’t drop to $200k, it dropped back to that “new normal”, that new price that had adjusted higher to be in line with surrounding markets. 

Those folks are in commercial loans which if you read the news, are on the verge of crashing.  

Should wait or back out now that we are likely heading into a RE correction or crash?

If you should wait for housing prices to come down before you invest.If you should sell your investments now before prices drop.Though I can't provide answers to your questions directly, I can provide data from our last crash in 2008-2009 that will hopefully guide you as you make your investment decisions.  

Back in 2008 stock market crash, I jumped in and was greedy when Dow Jones fell 30% from about 14000 to 98000.  

@Richard Howard I am a land investor (3 years) and here is what I'm hearing from the "gurus" who were around during the last market crash.  

Watch the Stock Market, who is trying to crash the market so they can buy low?