Q. When is the right time to invest?
A. Market timing has been the downfall of investors in all arenas since the origins of investing. Rather than trying to time a fluid market, why not define your objectives, align with savvy professionals who understand those objectives and buy when you find an opportunity that meets or exceeds those objectives?
Q. What if prices go down?
A. Does it really matter what happens to market values if your investment continues to meet your objectives? Assume for a minute you invest $1,000,000 and your net return is $100,000 per year into your pocket. A 10% return right? Your money will double every 7.2 years at that rate – not bad? If the market value of that property drops to $500,000 BUT you are still putting $100,000/yr into your pocket . . . are you still receiving a 10% return on your investment?
Profit pointer: Would this be a great time to acquire additional holdings (dollar cost averaging concept) at the $500,000 to raise your overall portfolio return?
Profit pointer: What if you had taken your $100,000/yr net return and used it to create “hard equity” by paying down and debt you may have against the property, could this concept play into your overall investment strategy?