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2020 Market Crash?!?!

Are we facing a recession and a market crash soon?

These are the type of questions I’m getting recently from some of our investors. Quite naturally some people are very cautious and hesitant when it comes to investing since 2008. Real Estate Market prices have been increasing dramatically and many are afraid that another crash is around the corner.

The top 100 Wall Street analysts and real estate experts got looked at the future and made the following predictions.

94% of them think that the market will keep appreciating.

4% of them think that the market will break even

2% believe it’s going to depreciate slightly.

According to most of them the word “Recession” is probably the wrong term to use since it resembles a catastrophe like the one we have experienced between 2007-2009.

However, generally speaking, a market slowdown is in 2021-2022. BUT....the American real estate market is behaving like macro giant that also has thousands of little dwarf submarkets. This means is that each little area has its own micro economy that is affected by so many factors, like demography, local industries, migration rate, employment and unemployment rates ,crime rate, schools ratings etc.

Looking forward, we are not expecting the market growth increase by double digits like it did in recent years. A 4-6% increase a year is very realistic.

The next question should be...

“What is the right strategy and criteria to use”?

In order to determine whether this is the right market to invest or not you have to have a plan in place that fits your expectations from the market. Pick the right sub market. If you don’t have a plan in place, no strategy and no criteria - you’re considered an amateur investor and chances are that you’re not going to get anywhere. It’s just like getting into your car without having a specific destination that you’re looking to reach. Are you just looking to ride your car for fun? That’s OK if you are in to waste your time and money.

Once you’ve defined your strategy, criteria and plan then you can start looking for the properties that will match them and these properties could be found in any market at any time. For more information on how to craft your strategy, please look to my other blogs. They are filled with information to make your investing experience smoother and your money flowing the way you want.

Whether your strategy is investing in single family for “Long Term Passive Income”, or flipping houses or investing in triple net commercial properties, there’s always a place and market to find them. Of course you have to have the right team in place to help you accomplish your plans, professionals like realtors, property managers, contractors, insurance agents etc. that will be there for you to support your plan.

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