I Was Recently Asked By One Of MY Students
"I have a property I am buying, but I think I might not have the financing for the funds. Should I save up a bigger down payment and just wait for the real estate market to crash?" Here is how I responded:
Great observations my man.
You've got a few options here.
If the property is a good cash flowing deal, and your income is much higher for 2021, then all we need is an extension to the end of January.
After you've done your taxes, the lenders should have no problem making the loan work.
Bringing in a cosigner could also help with the closing if showing income is the dilemma and the seller won't work with your extension.
As for the concept of waiting for a crash, that's is a slippery slope.
One strategy that I believe in is investing in Crypto over the next 4 years and using those gains to invest in Real Estate when we do finally see a correction.
This is somewhat of a speculation play, but if you have firm belief in 3 solid coins that are likely to at least double over the next 2-4 years then it could put you into a very good buying position.
Building up your capital through growing a business is still the fastest way to build wealth.
We then take that wealth and store it in cashflowing assets like real estate.
Which is why I agree with Robert Kyosaki when he says, "Build Business & Buy Real Estate"
Especially if you hold the coins and use leverage to buy the real estate.
He Shared With Me That He Made And Blew $250K
Ha ha that sounds a lot like a midlife crisis my man, lol
I went through mine when I was 30 and moved to Las Vegas 😅
The market can drop anywhere between 20%-40%, but there will always be markets that are hit harder than others.
Las Vegas is an example of a market that got as low as 70%, but most took the 20% hit.
Inflation on real estate is typically 5% annual over the last 40 years.
So if my theory is right, we will see the bubble continue to pump until 2023-2024.
In a lot of ways, the prices we see today are likely the prices they will return to in most markets in 2025-2026
The only difference is that the rents will be higher in 4 years so the numbers will work better.
This is one of the reasons we are focused on having our community, focus on their businesses and using real estate primarily as cash-flowing storage of wealth.
In Conclusion
Investing really does become a very personal thing. It will depend on your skills, objectives and in many cases your own personal beliefs of how the world should work. I enjoy getting the questions and sharing my experience with anyone who is driven and committed enough to join in this game.
Cheers to your success!
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Investing is building a future and cryptocurrencies gives us quite some thrills due to the market volatility. Even with that they are shaping the world and pushing us into a new technological era, so investing now is the right thing to do. That and also some real estate roots and you are settled for life!
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I have always been wondering how 3D printing will affect prices as it should drive the price of creating homes down. Have you considered this before deciding to buy a home?
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3D printing will definitely help out with the problem of low inventory, but we are still likely a decade away before mass production of the 3D printers gets to anything meaningful.
There are many ways for us to get more inventory to the market. Its just about being creative.
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