This has to be one of the most unique time periods we’ve experienced for real estate investing. So many events are swirling around us now, coming together in the next few months. We have an election that may radically transform the way we do business. A virus pandemic that will come to an end soon with a vaccine. Or not. An economy that until eight months ago was on a tear, then dropped faster than we’ve seen before, and is now climbing back to the growth, unemployment, and stock market levels we had before the drop. And interest rates that we were all certain could do nothing but rise, but in fact fell.
What’s a real estate investor to do? Here’s a suggestion – stop looking at the next three to six months.
Change your focus instead to the next three to six years. How many times has the desire to own real estate been less than it was three to six years ago?
Hardly ever. Nobody has repealed the law of market cycles so expect volatility, but if you think we’re at the peak of a seller’s market, move cautiously but don’t step away from the market. Negotiate the right deal or no deal, and don’t over-pay.
Also keep in mind there are still massive equity accounts on the sidelines, waiting for opportunities. Waiting for a big dip into a bona fide buyer’s market might be a long wait.