VDI Insights: Market update (Is This for real?)

Listen:

-Tim Murphy

Today's insight is going to be about a market update, and the market really is like nothing I've ever seen before.

Now, I've lived through the downturn in 2008, when property started losing value each and every day.

You might think, oh man, I'm buying a property, and every day after it's going to lose value, how do I do that?

That has to be the worst thing ever. I lived through that as a real estate investor. I made money doing that, but today properties are going up 12, 14, 18% in a year.

And in some places, even more than that.

Interest rates are low. Prices are flying up. Everybody can make money in real estate because it's going up.

How can you screw it up?

You buy it. And it's just going to keep going up in value.

See, that's the real question.

That's the difference between a seasoned veteran investor and someone who's just following the herd because, based on my experience, I would much rather invest when the market's going down, because I know it's going to go up.

Eventually the tide has to turn, but the same thing can be said, when homes values are going up 12, 13, 15, 18%.

What's the worst thing that can happen?

The market turns and values start going down.

Back in 2006, everybody said, that's impossible. It won't even happen, but it did. And I've never forgot about it because I help families survive the downturn in the market.

I know what it feels like to lose your home. Not because I've lost my home but because I've helped families who had to do short sales and who had to fight through those days, those times.

So right now, everybody thinks that the market is amazing. All you have to do is buy a piece of real estate and you're going to get rich.

All I have to say is to be really careful right now because if the market turns, property values could go down and we don't know how long it's going to take for them to come back up.

So I'm always thinking about how to protect myself against a market shift. And that's really what I wanted to share today. Because literally if you bought anything in the downturn, and I mean like the last 10 or 12 years, you are laughing all the way to the bank.

What's your strategy?

Are you looking for cashflow?

Are you looking for cash?

These are all things that are going through my head. And I wanted to share it with you guys because being a real estate investor, no matter how you look at it, we all look at it differently. And that's what I love so much about real estate.

You can look at it a hundred different ways from a hundred different angles.

Everybody has a different perspective and everybody can take a different approach, and everyone can make money in a hundred different ways.

And that is why I chose real estate because the game is dynamic and there is risk

And you better pay attention to the risk because your theory might be great. But when you go to execute it, you might not want to face the reality. And that's what we're all up against. And that's, what's exciting about real estate investing. That's, what's exciting about investing in general. So I urge you look at all the angles, pay attention, and hopefully this insight