Steve D Valentine says you can't time the real estate market perfectly. Clients who waited for prices to drop got hit by rising interest rates that tripled, making homes unaffordable anyway. His advice: buy during low rates, use equity lines, and focus on long-term rental income and cash flow instead of timing the market.
Chapters
You're going to find timing in the market, but you can't ever time the market perfect. We all have a bunch of clients that have been trying to time the market and they all thought like, oh, I'm going to wait till the market goes down. 20, 22, what happened? The interest rates tripled, which kicked them completely out of buying. But all those people that could have bought because interest rates qualified them, they would have been better off buying. Then thinking about, oh well, the market went down $50,000, but the rates tripled. So now you can't qualify for it and it now doesn't make sense as a rental property. See if people would have bought or anybody that we're advising right now that bought in those times when interest rates were good. I'm convincing them that you have like the kick ass interest rate and payment. Let's do an equity line on it. Let's take advantage of the current market. Yes, your rate's going to suck for a little while, but the cash flow from this property is going to cover the added expense. We're going to buy, but not just to buy. We're going to go buy something that might be a little bit below market or it's going to make a great long term rental. We're going to go start this process so that in a couple of years you have a goal and you have a dream and this is how we're going to execute the plan.
