The Most Important thing in Real Estate Investing
When it comes to real estate investing, many people think that the most important thing is location, location, location, but I think it’s more about timing. Successful real estate is more than just buying low and selling high. It’s about setting yourself up during an up market to not only survive, but to succeed in the down market Right now, interest rates are moving in the US.
The US 10 year bond is a barometer for mortgages at least in the US.
Myself and my JV colleagues are seeing prices soar in Manchester. So called investors and foreign investors are paying more than asking price. It pays to be a contrarian. The best time to buy real estate is when there is “blood in the streets,” or in other words, when the market has really crashed. Do you remember the prices in 2009? You could not give away real estate. The reality is that interest rates for mortgages are moving in the US. They have risen dramatically however they are were they were at the beginning of Jan 2016. There is a lot of talk about inflation. I personally am trying to find a proper balance. Myself and my JV partners are only buying GREAT deals. We only focus on high cash flowing Professional HMOs, Social Housing HMOs and conversion projects. We refurbish them….tenant them and they are cash flowing ( actually very high). We do not trust the banks and do not like jumping through all the hoops.
In a strong real estate market, it’s easy to make money with prices and rents going up and the economy and jobs booming. It’s the down markets that are tougher. Strongly suggest you lock in financing and just buy and hold, if you have solid cash flow per month, it’s not game over if the real estate market declines and values fall since you can collect plenty of rent to cover your principal interest taxes and insurance. This is a time to find great deals. Try to find more JV partners that appreciate your work and integrity…
Recent Comments