Is it Too Late to Get into Real Estate? Prices are up… way way up! Inventory is climbing. Interest rates are up. With all these factors Flipping a house just might not be that easy and profitable anymore, right?
There’s a funny thing about misconceptions of real estate investing. Thinking you missed the boat because the hot selling season is smolderling, is only looking at one side of the equation. It is often very easy to have this narrow window formed by the belief that you only make money in a sellers market.
The good news is that real estate is much more dynamic than simply asking, “Is it a good market?” or “Is it a bad market?”
The real answers actually depends on which market are you talking about – a Cash market? or a Cashflow market? This differentiation allows you to answer the question completely and the answer is definitively — It’s ALWAYS a good time to get into real estate!
Like most things the importance lies in the question itself and how we ask it. And sometimes it’s just the wrong question all together, or at least an incomplete one.
Sometimes it takes reframing the question to get us to a better answer that makes more sense, and gives us control to go create wealth with real estate.
Asking the simple question, “is it too late to get into real estate investing,” is really a limiting question. Asking the question this way presents real estate as a singular “Cash” focus that is somehow controlled only by market timing and outside circumstances. Like you’ve gotta be lucky to time the market right in order to make money. This minimizes one of the most powerful principles of real estate investing (recurring passive income) and is just outright wrong. Approaching the question in this manner completely leaves out Cashflow and really only tells half the story.
Simply put real estate can perform and be profitable in any market regardless of if its hot or cold.
With real estate investing we have this great opportunity to work on opposites. When people are buying, and the home sales market is hot, real estate investors should be selling. When market is tight and not as many people are buying or buyers are leaving the marketplace to sit on the sidelines, we should be renting. Either way we win and can profit in all markets!
So basically if we can revise the question to “What strategy is effective right now?”, as opposed to “Is now is a good time?”, then we open a whole new door to understanding how to make money with real estate.
For the educated real estate investor – it’s always a good time!