Joe Holmes argues that waiting for a crash is a mistake. The 2007 crash was an outlier caused by loose lending and excess inventory. Today's market has tight credit requirements and low housing supply, making it fundamentally different. Buy good deals now instead of trying to time the market.
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In today's video, I'm calling out everybody who's talking about an upcoming crash and why that mindset might prevent you from making smart decisions. Coming up next. Do you want to invest in your first or next property but find yourself wondering if you should wait for the crash before jumping in? If so, you're not alone. I hear from experienced investors to my personal friends who are all questioning whether they should buy now or wait for the crash. Let's go over why waiting for the crash may be preventing you from buying that great next deal. If you're new to this channel, I want to quickly reintroduce myself. I'm Joe Holmes. I've been a broker, investor, and mentor for over 40 years. I dedicate this channel to the new and experienced investor, really anybody that wants to create the life they've always wanted through real estate. But what about the crash in 2007? I hear this comparison all the time. I want to go over some key differences and why 2007 was more of an exception rather than the rule. In 2007, there was more new construction than there is presently, and that's one of the biggest reasons that the crash is not going to be as big as as it was before because we still have a historically low amount of homes for sale. Let's talk about credit standards back in 2007 and today. Back in 2007, I used to joke that if you had a warm body, they gave you a loan. There was no credit standards back then. It is totally different now. Now they want an arm and a leg. Everything else you can provide them. They want at least 20% down. They want to make sure that you're able to make this payment on this home purchase for the rest of your life over the 30-year period. That's the biggest difference. Let's talk about those types of loans. I used to call them warm body loans. Again, they were giving people out 100% loans Towards the end, I even saw some companies out there giving you out 110%, which means that at the end of the day, you were getting money back for buying a house, which was absolutely crazy. Obviously, the loan standards today are totally the opposite. You have to— most people have to put 20% down. There is still FHA loans out there, but they qualify you very vigorously. And there's VA no money down loans. But those are the most well-deserved loans out there, protecting our veterans and making sure that they have housing at the end of the day. Stop trying to time the market. If you find a good deal now, take it. The market could go up another 15% or it could decline tomorrow. We just do not know. In times like these, it is important to focus on your personal deal criteria And stay focused. If you find a deal that fits your long-term strategy, take it and don't look back. But as always, make sure you have liquidity to cover all expenses to ensure that you never have to sell at the bottom of the market. We know the market will eventually go down in the coming years, but if you're looking to buy now, do it. Determine for yourself what a good deal is. Once you do, go out and find something that meets your criteria. Buy it and hold on to it for a long time to come. If you're new to investing and want to learn about how to wholesale real estate in this current hot seller's market, click on this video right here. I go over exactly what to look for to find a smoking deal. Feel free to reach out anytime. I'm here to help.
