People constantly talk about timing real estate investments with the market, but I’ll let you in on a secret. You actually do NOT need to have the “right timing” in real estate to make money. If you are worried about timing real estate safely and profitably, this might make you freeze all decisions. You will never be able to control the market, so you gotta learn to work in whatever it is doing. Some of the most successful investors push that you shouldn’t even try to play the “timing game” with the market.
The impossibility of “timing the market”
“Timing the market” is those who attempt to figure out the best time to buy or sell. This strategy includes a lot of challenges. Take a look at what happened in 2008 to a lot of investors. There were so few that made it through that. They didn’t buy and sell at the best time. There was not perfect timing. If you are trying to figure out what will happen in future markets, you will find it difficult to impossible. This is for a few various reason. First, you are facing so many factors— millions in fact! Factors like interest rates, economic policies, technological advancements, and natural disasters; which are out of your control.
Some people become distracted by the media that often shares flawed information, lags behind the current trends, and is so often manipulated in a way that creates misguided news. You can’t sit and watch the news or your favorite investors, because once the story breaks, it’s all history. You’ve probably missed the window to buy and sell.
Why timing is unnecessary
Warren Buffett, the greatest investor of all-time, even says you shouldn’t try to time the market. His mentor, Benjamin Graham, told him that. Benjamin was known as ‘The Intelligent Investor’ and believed that if an investor was consistent and just continued to invest, he would be successful. Call it, “A law of averages,” “number’s game,” or “luck,” but the point is the same— invest, invest, invest. The investments could play out at the bottom or the top of the market, but over time, you will see the best results. Remember how I’m always talking about the long term game? That is how you will be successful in real estate investing.
Continue to invest
Pay attention to the details, numbers, and cash flow of each individual property and opportunity that looks promising and continue to invest. Of course you cannot flip, if you buy at the top, and selling will kill you in financial suicide. Compare that painful sounding experiencing to a buy and hold strategy– keeping properties for their long-term gains.
“Timing the market” can leave you sidelined with excuses as to why you are waiting to jump into real estate investing. In the past few years, some have bought properties on speculation and might need to consider what they are holding onto and how the market will change. If you continue to invest like elite investors do— by acquiring cash flow positive properties for the long-term gains— you will decrease your risk, overall, no matter what the market is doing.