‘Tis the Season
By W. Karl Baker, CPA
There’s lots of news out there saying “now’s not the time.” “The economy is slowing down.” “We’re headed towards a recession.” “The cost of borrowing is going up.” This is a good one: “Rates will go down eventually and that will be the time.”
I heard a podcast recently that gave the quote from a celebrity author, “Don’t wait to buy real estate. Buy real estate and wait.” That really resonated with me, so I looked it up. The best I can tell it was mis-attributed and is actually a Will Rogers quote.
As I’m writing this I’ve been thinking about another phrase “‘tis the season”. It’s the Christmas holiday season. It’s a time when people are reflective. It’s a time for love, and there are many other important things to celebrate at Christmas, such as the birth of a savior.
However, I’ve also been struck with that phrase as a mantra for real estate investment.
‘Tis the season. ‘Tis ALWAYS the season.
Experts more expert than me say real estate is the path to wealth. It’s also a great way to contribute to society by using expertise to provide quality housing and commercial real estate. I’m personally an investor, and that happens to be very important to me.
So these are my thoughts. In times of rising interest rates it puts pressure on financing costs but it also puts pressure on home prices. As an investor, isn’t that a good thing? Deals will be there. It seems to me to be a good time to remain diligent in your investing. Imagine the end game: When you close on a new property, doesn’t it feel like a win? Are you REALLY concerned at that moment about whether the interest rate is 7% or 4%? Yes, I get it. All-time low rates have been great. However, assuming you’ve done your due diligence – understanding the status of the real estate and the cash flow opportunity – isn’t there an overarching sense that it was a good thing you’ve just done?
So take heart. Advance.
Our lenders are still lending. We do residential and commercial real estate private financing, and we would love to help you.