When is the Best Time to Invest in Real Estate? | REIal Talk | The Freedom Show | EP.86

Hi, guys.

This is the Real Talk for Real Estate Investors podcast. This is number 86. I am Lauren. I'm here with Darcy. If you guys have been following along with us in our vlog, we introduced Darcy, what she'll be doing with us, some stuff she likes to do for fun and her role with us. How are you doing today?

I'm doing lovely.

Good, good. We're trying to stay warm out here.

Yep, yep.

So today we're going to be talking about when is the best time to invest in a real estate investment property. So I'll go ahead and start off with the questions we have for you. The first one I have is when do you think the best time of year to invest in a real estate property is?

So I love when people ask this question because I think sometimes it might, I think it's more like somebody that might be like a newer investor would ask that, like, when should I invest? Because they've probably got fears of, you know, like the interest rate, am I going to get help through the deal? And I'm just not sure what I'm doing. When is a good time. So they might be kind of defeating themselves and hoping that somebody's going to say, now it's not a good time, so they can justify, okay, well, I'm not going to invest because I was told it's not a good time. But anytime is a good time to invest. Summer, spring, winter or fall is a good time to invest wholeheartedly.

Agree.

Yes, you can invest anytime because, and it just kind of depends on like who your sphere of influence is, but you know, you can get help pretty much anywhere investing, so. Exactly, do it anytime.

It's an all year round thing for sure. From what you've seen so far in the industry and the current state of the market, do you think 2023, the year we're in right now, do you think that's a good year to invest?

I think it's a good year to invest because like I said, all years are good to invest, otherwise you'll never get started. But I think one thing that people are afraid of right now is the interest rates because I actually, I saw an email today from a lender talking about, oh, you know, we need to get this property closed up because the interest rates are just, they're just going to go up and we just, you know, we just want to get this closed as soon as possible. But I'm not really afraid of interest rates because I kind of have a philosophy of like, you know, date the date the interest Rate. Because you can, you can always change that. But as long as the property is a good deal, then just go for it. And then. And then you can just kind of figure it out as you go. Yeah, yeah. And then historically, like, if you look back at interest rates, they used to be like 18 to 20%. So that compared to where we are today.

Right.

Like, it's. We're not really anywhere crazy. You just kind of have to look at history and it has a tendency to repeat itself.

Yeah, exactly.

They used to be super low. Now they're middle. They're probably going to go higher, but they'll go back down again. And that's when you just refinance and get a better interest rate.

It's like a cycle. Yes. And you're an investor yourself, right? Yes, I am. You haven't let interest rates stop you from looking at good deals or anything, right?

Nope. I just see the interest rate.

I'm like, okay, that's what it is.

That's what it is. You know, just like the purchase price for a property, you know, like, okay, that's what you're asking then. That's what it is.

Yeah, exactly. There's not much we can really change about interest rates or anything. It's just the current state that we're in. Yeah. And like, I like how you said, you know, it goes, it goes in cycles. You know, there's ups and downs as anything in life is.

Yep. Like all markets.

So I like that.

Just get in there or you're never going to. You're just going to be on the sidelines wishing, oh, I wish I would have invested, you know, two years ago when the interest rates were, you know, 3, 4%. But maybe somebody talked to a person, they were like, oh, now's not a good time because, you know, we have all this stuff going on with, you know, what was going on then, so. So maybe they talk themselves out of it.

Exactly. There's always going to be someone who's offering doubts, you know, everywhere. Yeah. Yep. Say I wanted to get an investment property. What are some things that I should consider? Or what are some things that you consider first before looking at a property?

So I always consider the exit strategy. So kind of knowing where you want to go with the property when you're done with it. Because if you don't know where you're going, you're not really sure how to get started started either. So exit strategies could be a few different things. You know, you could be like a buy and hold investor where you buy something and Then you want to keep it and just rent it out. Or you could want to do, you know, fixing and flipping. Maybe you want to get something that, you know, smells like cat pee and the roof is falling in and put money into it and then reset, sell it for a profit. So, and depending on what your exit strategy is, that kind of helps guide you like when you're going through the transaction. So like if you want to get something that is that you want to do a fix and flip for as like an owner occupied property, there are different things that you would want to put in that property as far as like finishes. So, so versus like a rental property. So you know, if you want to resell something as an owner occupied property, you'd probably want to put higher grade, you know, countertops, higher grade flooring, better windows in it. But if it's an investment property, you know, you might not want to put that in there. So that's, you know, knowing what you want to do with the property when you're done with it is extremely important.

I've never thought about that before.

This.

Yeah, that's a big thing to think about. When you're, whenever you're done with it, what do you want to do next with it?

Right, exactly. Because like, if you want to, you know, if you're, if you're wanting to do something as like a buy and hold and then maybe you want to immediately grow your portfolio so you could buy an investment property, rehab it, put the tenant in it, and then refinance it and take that money that you refinanced out of it and use that as like a down payment on another property and maybe you'll get like, you know, a three or a four unit. So, so just kind of knowing what you want to do with the property is really important.

I like that answer for sure. What are some tips that you have learned yourself? I know you said, you know, understanding your exit strategy. What are some, some other tips you've learned in this industry that you'd like to share about real estate?

I would say a. Networking is extremely important. So that way, you know, especially if you're like a first time investor and I, you know, everybody that's an investor has been a first time investor at some point because you have to start somewhere. So kind of having a sphere of influence to help you kind of navigate those waters. And when I say networking, it doesn't mean you just have to have a circle of real estate agents. Like, because not all really real estate agents know a lot about investing. Some of Them just primarily help people buy owner occupied properties which would be, you know, which we, we have those too. So you can network through like different real estate meetup groups. You could like join your local chamber of commerce. And some, some things I like to do is like when I go to like Lowe's or Home Depot, like I look for contractors that have like their work shirts on or, or their work vehicles in the parking lot that has their advertisement on it. Really? Yeah. And I'll get like their information too because if they're at a hardware store, they're likely working on some kind of property. So it could be somebody that you could network with as far as maybe they might know some properties that are coming for sale. Who knows what they're working on or if you're wanting to do rehab yourself, you could potentially use them. But it's just moreover kind of spending time with people that, that might be doing real estate related activities. And like when I mentioned, you know, going to like the chamber of commerce or possibly getting on some kind of like board in your community, people in, some people in those groups might be in real estate. So in your conversations you never know who you're going to meet. And that's kind of how you would just grow and work.

You are who you are around. You become them, basically. Yeah. Like when I first started here, I knew nothing about real estate at all. I didn't even watch hgtv, thought it was boring. I didn't care about that stuff at all. But now that I'm here, I'm surrounded by these conversations and this atmosphere and this culture of a real estate investing mindset. And I have learned so much, so, so much here. So being around people who have the same goal as you do in mind. Definitely. Because you are, you become who you're around.

Yeah, yeah, I definitely agree with that.

Yeah.

And I think another thing would be like taking advice. That would be another tip too. Cause if you think about it like if you're sick and you need some help, you're gonna go to your doctor, your family doctor and he's likely going to tell you what you need to do to get better. If you're in some kind of legal battle, you're likely going to call your attorney so that way you can get some legal advice. So you're not going to go to your attorney and be like, I'm sick, you know, my stomach hurts, what should I do?

Yeah.

So you know, you want to take advice from people that are, you know, actually doing real estate related activities because I've had. I've had people, like, with, like, some owner occupied properties. I've had, like, different clients that I was helping tell me that their family members were, you know, trying to talk them out of the purchase or saying that it was bad, bad. And, you know, my thing's always like, how, you know, how much real estate knowledge do you have? How many properties have you sold, have you rehabbed, anything? Because you want to take advice from somebody that kind of knows the market and knows what's going on. Because, you know, like I was talking about before, sometimes people are just afraid, and if they're afraid, they could put those fears on you. So if they're afraid, then I'm afraid for you. But maybe you're not afraid and you want to take that leap.

Yeah, exactly. Exactly. That kind of leads me into the next question. We've been talking a lot about people getting started in real estate and the things that they should consider, they should prepare for and stuff like that. If someone wants to get started in real estate now and wanted to work with us or had questions about who we are, how would they reach us for, like, a strategy call session?

So you could. You can send me, like, a direct email, which would be Darcy, let's put spelled D a, r, c I ereedomrealestategroup.com and then you can also reach me by phone. My phone number is 937-704-3750. So I'm happy to text, email, whatever you prefer to just kind of help you along the path.

That's awesome. Thank you. Thank you so much. I think that's all the questions I have. Is there anything else you'd like to add? Something we didn't talk about?

I don't think so. I think that's about it. Cool. Cool.

Well, I'm sure you guys will be hearing a lot more from and about Darcy as she continues to work with us. This was another installment of our podcast, Real Talk for Real Estate Investors. Again, this was podcast number 86. You can listen on all major streaming platforms and make sure you subscribe. And remember to invest smart and live happy. All right, bye, guys.

Bye.

Nothing on this show should be considered specific personal or professional advice. Please consult an appropriate tax, legal, real estate, financial, or business professional for individualized advice. Opinions and information on this show are not guaranteed. All investment strategies have the potential for profit or loss.