Whenever people find out about what I do, they always have questions about real estate, usually pertaining to tips for remodeling a house, etc. I love answering these questions. I could talk about real estate investing all day long. Although, I’ve noticed that there is one question that tends to come up more often than others. People want to know when they should buy property.
My friends, family, and professional connections have asked me many times, “Is now the right time to buy?”. The answer is always yes! If you have found a great deal on a piece of real estate, the worst thing you can do is sit around and wait for the “right” time to come along.
The “Perfect” Time Never Comes
If you’re waiting for the perfect market and the perfect property, then you’re going to be waiting a long time. There are always risks with market prices, and there are always unforeseen expenses with investment properties. You can make money in real estate investment in any economy if you take advantage of your options.
It’s Always the Right Time…If It’s a Good Deal
Of course, not all flips are good deals. Oftentimes the seller is asking too much money for the property. Sometimes you get outbid at auction, or there is just too much damage and the house needs to be completely demolished. Sometimes the comps in the area aren’t selling for enough money to justify the asking price on the house.
Each of these scenarios describe bad deals, not bad timing. If you’re choosy about your properties, and you know how to spot a good deal, you’ll always have good timing.
Remember Your Options
As you look for those good deals, remember that you have a few options when it comes to making money off of the properties you purchase. For example, if you’ve bought a property, and the market in the area is stale, you might want to hold onto it. You can hire a property management company to handle obtaining and retaining tenants, and you won’t have to worry about selling your house right away.
On the other hand, what if you buy a fixer-upper property at a fantastic price, but you find out it needs way more repairs than you budgeted for? Not a problem. You can often wholesale a house like this to another real estate investor who can decide whether to sell or rent it once they’ve completed any necessary rehabs.
Remember – You Make Your Money When You Buy the House
If you need any more convincing that there is no bad time to buy a fixer-upper, then here you go. You make your money on any property when you buy it, not when you sell it. I know it sounds weird, but it’s true. You’re not making a profit because you’re trying to sell above market value (which is almost always impossible, especially with a fixer-upper). You’re making money because you got a great discount on the property and you did the work to bring it back up to market value.
And that is one of the best real estate tips I can give you. Seasoned investors know that investing is a market-neutral industry. We aren’t dependent on a bull market. When I’m looking at a property and deciding whether to remodel or wholesale a house, I really don’t think about the timing at all. In fact, the only thing I’m considering is how fast I can get the property rehabbed and sold. And you should do the same.