Real estate investors are excitable people. It’s hard for me to contain my excitement for upcoming opportunities in the market. I was for the most part an investor through the 2008 great recession, although I didn’t actually invest prior to that. I intended to, had partners lined up, and actively looked for multifamily properties, but didn’t pull the trigger on anything. That was just dumb luck. I didn’t have a crystal ball and saw the price declines coming, I just didn’t see any good opportunities.
After the recession, trends were not suddenly all pointing higher. Many smart people said this tragedy was not over yet and to keep that cash safely tucked away.
But I’d been investing long enough to know that this was now an opportunity. If the market dropped more, it wouldn’t be by much. So I got in, right after the recession, and have been investing in multifamily since. I’ve done well because in the last 12 years the market has been kind to us, and I have actively participated.
But we haven’t see much of a downturn in the last 12 years, and now we have one. I know what happens after a downturn, and I have historical perspective to know that by the time the market starts moving in a positive direction again, the smart investors will be buying in numbers that will exceed our recent good years.
That means two things: We have to be looking at deals, and we have to be ultra-selective. Not everyone sells their property at a discount in a recession or downturn. Many would love to sell but don’t have to, and they’ll just continue to hold. We’ll pursue opportunities that make sense today, accounting for high interest rates, an expected recession, and increasing unemployment.