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Good morning everybody! I hope you are all able to enjoy the holiday weekend with family and friends.

In this week’s newsletter, I wanted to describe the importance of getting started investing instead of waiting for the “perfect” time. Because in my opinion, there is never going to be a “perfect” time to get started.

As we all know, real estate is experiencing some economic headwinds when it comes to higher interest rates. However, I still don’t see that as an excuse to remain on the sidelines and not invest at all.

Similar to stock investing and dollar cost averaging, it is important to invest consistently over time when markets are favorable and when they are experiencing change. This actually helps to limit risk as you are invested in different market cycles.

Based on that, I talk to people all of the time who are waiting for the stars to align before they ever make a decision to get started. I understand where they are coming from as I have also been there.

However, I decided a few years back that I was done overthinking everything and was going to get in the game.

Many people wait until prices come down or interest rates come down before they invest in real estate. However, those things are out of our control and the longer you wait to get started, the farther behind you are going to be.

For example:

In 2020: Many people did not want to invest in real estate due to COVID. However, interest rates were at an all-time low allowing people to lock in low interest payments and benefit from appreciation over the past few years.

In 2021: People didn’t want to invest in real estate due to high prices and wanted to wait for prices to fall. Real estate tends to be market specific, but I have not seen prices decrease at all in Kansas City since 2021.

In late 2022-early 2023: People don’t want to invest in real estate because interest rates are higher than they have been in a long time.

However, now 3 years have passed with no action taken.

You learn more by taking action than by waiting on the sidelines.

As long as you buy for cash flow, use fixed rate debt and have plenty of cash reserves, your investment has a great opportunity for success.

We never want to simply rely on the market for appreciation.

As we all know in life, there is never a perfect time to do something. You simply have to go do it.

This wasn’t a detailed newsletter this week, but more of a mindset shift.

As always, this is my experience and everybody is able to make their own investment decisions and have their own opinion.

Let me know what your thoughts are on the current real estate market!