Is There an Ideal Time to Invest in Real Estate?

Posted by Chris Clothier on Thu, Oct 5, 2017

investinrealestate-idealtime-realestateinvestor.jpgSome say that a sense of timing is everything. It’s all about being in the right place at the right time. For many of us, waiting for the right time can become a security blanket.

We use it as an excuse to stop ourselves from taking leaps of faith. When it comes to investing in real estate, would-be investors make this excuse, too.

The market isn’t right. It will be better next month. Next year. I want my finances to improve first. I’ll wait a little longer.


Here’s the question: is there really an ideal time to invest in real estate? Well, we’ve already dispensed a little bit of advice on that end. There’s not so much a “best time” to invest in real estate as there is “this moment, right now.” Because that is the best time. We have so much more to lose by not starting in the present than waiting for our idea of a better time.

But okay. If we put that aside, and we’re talking about actual conditions that you yourself should be in in order to successfully invest: where do you need to be?


Here are a few more words on how you know when to start investing in real estate.


3 Signs You Should Invest in Real Estate Now

 

It Makes Financial Sense

This is the most obvious sign and the first step towards actually being able to invest in real estate. Have you taken stock of your finances? Depending on your investment strategy of choice, you’ll need different loans or a different amount of money at your disposal before you can comfortably get started. Remember, too, that’s it’s not just about having enough to purchase a property. It’s above having enough to cover unexpected surprises and costs, too.

Before you do anything with any sort of investment, we highly recommend taking a detailed look at your finances. Make a plan for yourself. Start mapping out some short and long-term financial goals, take stock of your assets, and see what you can use for your investment pursuits. Maybe you’ll take out bank loans, or go through your IRA, or pursue other means.

Before you can start investing, you need to know that it makes financial sense for where you are right now.


You’ve Done Some Research

No one needs to be a real estate investment expert to get started. So much of this business is learning on your feet! That said, it’s not wise to go in totally blind. You shouldn’t jump into this thing without knowing at least the basics of how it all works and what’s going to be expected of you.

For example, a lot more is going to be expected of you if you want to be a flipper versus a passive turnkey investor! Know your strategy. And perhaps more importantly, prepare for the financial side of it all. Talk to a tax professional who works with real estate investors so that you aren’t caught off guard and so you can maximize deductions come May.

One of the best things you can do for yourself as an investor is arm yourself with knowledge from the very beginning.


You Want in for the Long Haul

Whether it’s a job or a relationship, there’s something to be said for commitment. It’s no different for real estate investment. While yes, there are investors who throw in the towel after a few years, it’s not an ideal situation. It has to be something you decide that you actually want to do. Is this the path you truly want to pursue for your best financial future?

Passive investing is a buy-and-hold strategy. You reap the benefits of monthly rental income while also having the bonus of appreciation from the properties you own over time. Passively investing in real estate works best when you commit to it for the long haul. Scaling takes time. Building that portfolio? Time.

But if you give it that time and are prepared to nurture your investment career, it can hold the keys to your financial freedom.

The ideal time to invest in real estate has far less to do with market conditions and any outside forces than it does with you. It hinges on you to take the initiative. You have to decide what you want for yourself and your financial future.


Then you have to step up and take it.

 

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Topics: invest in real estate