Joe Homs, a broker with 40+ years in real estate, breaks down whether 2021 is the right time to buy. He explains rising, falling, and flip markets, then advises building cash reserves, targeting cash-flow properties, and only flipping if you have systems in place.
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Welcome back. Today we're going to talk about market conditions and what time is the best time for you to invest. Coming up. Is it the right time to invest? Are you in a rising market, falling market, or flip market? Are you a long-term investor? Are you looking for a quick profit or a little of both? When is the right time to invest? These are just a few questions that you must answer for yourself. Let's break it down. I'm Joe Homs. I've been a broker, investor, and mentor for over 40 years. This channel is for the new and experienced investors of any age to create the life they've always wanted through real estate. We're gonna break down the types of markets. A rising market, probably the easiest time to invest as you can do no wrong. Whatever you purchase your investment at, It'll continue to increase from month to month, year to year. Knowing when to sell in this market is the key to potential thousands of dollars in this market. A falling market, riding the wave down. I hope that you're sitting with positive cash flow properties, have no problems with renters. This is the time to build those cash reserves and watch for cash flow properties. Be ready to jump back in this market towards the bottom and wait for the next upturn. How do you know when your market has bottomed? When everybody is gone from the neighborhood, when you see more for sale signs than not, when everybody's telling you it's a bad time to invest, then it's time. However, remember, you want cash flow properties that have no difficulty renting for a long period of time and that you can put that money profit into your pocket each month. I'm talking at least $300 per month in my general farm area. What kind of market do you think we're in right now? Comment rising or falling down below. Next, we're going to talk about a flip market. Riskier than the other 2 because you're playing a game with your purchase. You are betting that you can purchase a home for so much less that you can potentially make a bigger profit. That profit potential has to account for the sales cost, the rehab cost, and the holding cost. I'm going to share my thoughts about the 2021 housing market. Keep watching. It's best to be prepared and knowledgeable so that you have good estimates and timelines. If you have your system down, you have your vendors and contractors in place, you should be able to turn around your flip in a matter of weeks. You have the potential of making thousands of dollars on each flip. Okay, here's my 2021 market update. Currently, we're in a very hot seller's market. We're potentially heading towards a buyer's market due to the forbearance issues that are coming up. So be prepared, have your cash sitting aside ready to go starting January and February when you have some potential deals headed your way. When it comes to the real estate market, there's a lot of moving pieces. Predicting what will come next can be pretty difficult. As an investor, the best thing you can do is be informed about your local market, reduce your risk by diversifying, make sure you're on solid financial footing before taking the next leap. When you're ready to get started building your real estate career, please make sure to subscribe or reach out to me anytime.
