News

Smart experienced real estate investors are buying up real estate right now like crazy. Why are they doing this and why right now? I’m going to try to keep this very simple.

The real estate market historically goes up and then it goes down. And then it goes back up again. This is a repeating cycle. In Southern California these cycles tend to have about a 10-15 year bandwidth. Right now prices are going down and they have been for several months. That’s when you buy.

Some people say, “wait, if it’s still going down then it hasn’t hit bottom yet. I’ll wait til it does.” That is a losing strategy. Why? Because one never knows when it is going to hit bottom, and when it does it starts going back up rapidly. The simplicity is it is lower than it was and it is lower than it is going to be. So buy now.

Some other people say, “wait, if I buy now I am getting into a property that is not giving me big cash flow.” As long as you are buying a property that is not negative and has other positive attributes it is a good buy. Patience is an important virtue in real estate. Eventually the income is going to go up. Eventually interest rates are going to come down. And when they do, you can re-finance your loan and instantly make your asset more valuable and instantly make your cash flow better. That’s what everyone did 5 years ago. 

So, the bottom line is: right now is a great time to buy real estate. It is a ‘window’ of time. It may be a small window. Jump through it and build your real estate portfolio for prosperity.

Best,

Ken Shapiro,

Silverwood Properties – 818-237-6963