Is Now A Good Time To Buy A House? Should I Buy Now

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Summary

Hey, Mike Wolf here from Mike Wolf Mastery, coming to you today from Reykjavik, Iceland. I had a comment on one of my videos on YouTube today. Somebody asked “you talked about what the market’s going to do this year, can you predict the future, and how did you do along with all the other “gurus” in 2007, 2008 when the market collapsed.”

To be candid, I did very well. That’s because I’ve been in the market for a long time. When I was investing in Las Vegas, the writing was on the wall, and not that I’m a fortune teller, I don’t have a crystal ball, but I will tell you this. When you’ve been in the business long enough, you see the same trends happen over and over again. That’s because real estate is cyclical. Although 2007 was far worse than previous corrections, and it was a lot more widespread, it wasn’t just in one market; it followed the same signs like every other drop and correction that had happened before.

I want to tell you some of the signs to let you know when a market is at the bottom or when a market is at the top. Pretty much, when everybody is talking about real estate and how it’s a great time to invest and a good time to get in the market when the builders are building like crazy, and banks can’t wait to lend you money that is precisely when you don’t want to buy. What causes a boom is not that it’s a good time to buy, but the availability of cash in the marketplace.

When the banks are willing to lend money to people with bad credit, no jobs, where you get to write your own job letter– They call it no-doc loans. Where you get to write your own job letter, you say “Hey, I work in McDonald’s and I’m flipping burgers making a million dollars a year”, and they say “How much do you want to borrow?” That’s a problem. Because now you’ve got all these unsophisticated people jumping into the market and they’re selling to each other. You’ve got a speculator selling to a speculator. In other words, the signs are banks can’t wait to lend, builders building like crazy, everybody’s talking about real estate and how much it’s going up. That’s a topic everywhere you go. Taxi drivers are talking about real estate, servers at restaurants are talking about real estate, wherever you go, what you hear is real estate.

On the contrary, when you’re at the bottom it’s quite the opposite. Everything is bad news about how there’s so many layoffs, the economy sucks. The banks will not lend you a dime, they’re tight even if you have great credit. The builders have stopped building and all you see is foreclosures. That’s exactly when you want to jump into the market.

That’s exactly what I did, when the recession kicked in. Those prices were getting unreasonable and I knew that was unsustainable. When you have home prices where two-income families can’t even afford a one bedroom apartment in a lot of cities, that’s ridiculous. There’s only one way for that to go and that’s back down. Because you’ve got no buyers in the market and with no buyers, you don’t have a market. If all you have is investors selling to investors, speculator selling to a speculator, you don’t have a market, you have something that’s ready to come toppling down, and that’s exactly what happened.

I hope you found this helpful. If you did, please subscribe to my YouTube channel. Make sure you comment below. Send this to any friends that might benefit, if they’re trying to get into real estate investing. Also, click the link below. It’s going to take you to some content where it’s going to teach you how to buy properties for pennies on the dollar right now in this market. Even if you don’t have a lot of money to get started, you can get in the game, and that’s the key. I’m Mike Wolf. Thank you for tuning in, and we’ll see you soon. Take care.