How to Know if It’s the Right Time to Invest in Real Estate

How to Know if It’s the Right Time to Invest in Real Estate - 4

Summary:  We’re here to help put your mind at ease about real estate investing in times of economic uncertainty. Let’s talk about navigating potential risks, how to get the most out of your investments, and why multifamily apartment investing is our chosen strategy for growing wealth, success and freedom – now and always. 

If you’ve been wondering if it’s the right time to get into real estate investing, you’re in the exact right place. 

Honestly, we get the hesitancy of diving into something that can be affected by the state of the economy and the world, when all of that seems a bit uncertain right now. We know you’ve seen the headlines going around about inflation, interest rates, and all sorts of market fluctuations. 

You can’t miss ‘em if you try! 😅

But listen. We see all the headlines too, we just don’t let them stop us from actively participating in the real estate market in the form of multifamily apartment investing. In fact, we juuuust closed a $77 million multifamily deal in Northwest Arkansas that went quite well – if we do say so ourselves. 

We can’t stop talking about it… so here are the details on what a $77 million multifamily deal looks like. 

We believe in the wealth-building power of multifamily apartment investing, because we actually see it play out all the time – in our lives and the lives of our investors. 🙌

That being said, it’s good to have a healthy bit of caution when looking to invest in real estate. Simply diving into any and every investment deal that comes along is not a move we recommend… at all. 🤓🤓

But with the right guidance and knowledge, there is a lot of money to be made in real estate investing, especially the multifamily sector. Let’s talk about what you need to know to confidently invest in real estate while navigating changing market conditions. 

Here’s what we’re covering: 

  • Potential risks in real estate investing
  • The true resiliency of multifamily apartment investing 
  • Why you don’t want to wait for the “perfect moment” to invest
  • 3 things to look for in your next multifamily investment deal

Potential risks in real estate investing

Well, let’s go ahead and get right into the stuff that may be holding you back from starting your real estate investing journey. Because, even though there are risks involved, there are also a lot of amazing opportunities that we don’t want you to miss out on. 

Plus, once you understand the main real estate risks out there, you can make a plan to successfully manage and navigate them – helping you bridge the gap to your big dreams and goals. 🤩🤩

If we’re focusing on those big headlines we’ve seen about the real estate market, the main risks for investing now would have to be inflation, high interest rates, and overall economic uncertainty. 

Inflation and interest rates go hand-in-hand, causing borrower rates to go up and property asking prices to go down. It makes sense that this would make investors nervous about achieving positive returns for their investments. 

On top of that, cap rates are rising due to market volatility, which can affect the net operating income of a property. 

Again, we understand that these are totally valid concerns for some real estate investors. We would never suggest diving into real estate investing without the right team, strategy, and plan in place to navigate these potential struggles.

And since you’re here, you’re already preparing yourself better than most. 👌

We really can’t say this enough…when it comes to mitigating investment risks, multifamily apartment investing is where it’s at! Let’s get into why. 

The true resiliency of multifamily apartment investing 

We can list all the reasons why we personally love multifamily apartment investing, but here’s the main reason that can help you face your market risk fears – it’s all about supply and demand. 

Think about it.

The universal need for housing will notttt be going away anytime soon, and apartment buildings address that need beautifully. People will always need a place to live – whether the economy is thriving or not. 

Looking at current housing trends, renting offers more flexibility, freedom, and affordability than purchasing a home, and we believe these trends will continue on into the future. 

The thing is, that older millennial renters now also want to find comfortable, long-term housing options, which newer, Class A apartment properties will be able to provide. 

So, of course, lots of new apartment buildings will be popping up in the coming years, to fill the demand – meaning owners and investors of said properties are in a very good position for future, profitable returns. 😏 😏 

Here in the Kitti Kingdom (where multifamily investing truly reigns), we focus on these Class A properties as long-term investments. Even though interest rates are high and the market seems turbulent now, it’s actually a great time to invest in the long-term possibilities of multifamily apartments! 

We focus our attention on areas of future population growth, where job opportunities are increasing, taxes are more manageable, and weather conditions are good, because that’s where people are looking to move and settle down. As those areas grow, so does the potential for things like high occupancy, rent increases, and greater future returns. 

We’ve already seen the long-term payoffs of multifamily apartment investing in action, even throughout the past few years of market changes and uncertainty. 

Why shouldn’t you also get to benefit from the magic of multifamily? 💸😉

Don’t wait for the “perfect moment” to invest

Some real estate investors may be nervous about diving into multifamily investing, because they don’t know if it’s the exact right time. With longer hold times than other investment strategies, they worry about getting stuck with high interest rates and no options to sell later. 

Here’s the thing about trying to time the real estate market though…you would need a crystal ball to know what’s going to happen years from now. 

Usually, people who wait and wait and wait just end up waiting forever – and missing out on all the passive income, tax benefits, and awesome returns of multifamily apartment investing.

Analysis paralysis puts a real damper on the whole, growing lasting wealth thing.

So, instead of waiting for the most perfectly perfect time in the real estate market, focus on your goals and investment criteria. Doing the right due diligence, working with the right team, and finding the right investment deal for you will serve you MUCH better than waiting around in the wings for that elusive, perfect time. 

We’ll get you started on what to look out for in a solid multifamily investment deal, so you can start getting in on the action sooner, rather than never. 🎉

3 things to look for in your next multifamily investment deal

 Each of the things we’re about to discuss go hand-in-hand to point you towards a successful real estate investing deal. If all of them line up, it’s a  good sign you’re on the right track, and can take the next steps – instead of waiting forever for the market to be just right. 

✔️ The financials are in order 

This is number one for a reason…the money matters! And you’re not just looking at the projected returns, but ALL the finances involved – especially the mortgage loan. It’s very important to secure the right loan (with the good kind of debt) to finance, say, a multifamily property, while making sure the borrowing costs align with the tenants and investors.

When you find an investment deal with well-organized financials that line up for all parties, you’re off to a very promising start. 

✔️ Underwriting airs on the conservative side

When it comes to underwriting, many investors get swayed by big projections and inflated rent growth, which comes from the underwriting process. 

We get it…the numbers can look appealing, but we recommend staying away from these big claims. You see, no matter what the economic conditions are, we tend to stay on the conservative side with underwriting. In recent years of market turbulence, we’ve gotten even more cautious in choosing the right deals, with realistic growth expectations.  

This helps us and our investors steer clear of potentially harmful deals with more risk than reward. 

✔️ Plenty of reserves are available

Even with all the preparation in the world, we highly recommend keeping reserve funds available – juuuust in case you have unexpected expenses. This will help you feel confident in moving forward with the right multifamily deal. It assures you that you have a back-up safety net, for whatever happens with the market. 

And, there you have it! 

Keeping these 3 things in mind can lead to better outcomes, more confidence, and peace of mind in your real estate investing journey. But you know what? There’s an even easier way to navigate the market, find the right deals, and secure the future of your dreams through multifamily investing…

✔️ It’s called the Kitti Freedom Club!💋

It’s a club for amazing people just like you, looking to increase their wealth and enhance their lives through real estate investing. The best part is, we will help you every single step of the way. So, no more stressing about when and where to invest your money.

We do the research, the due diligence, and the planning, then bring the right multifamily investing deals straight to you! 

If you want to invest on YOUR time, without waiting around for the ideal market, we’ve got you covered. 

Join the Kitti Freedom Club today!

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Fortified with years of experience, fierce passive investors (we ALWAYS in our own deals), and selected high qualities investment opportunities to help build your long term wealth no matter what stage in life you're on. We will show you the ropes, help you build out a powerful, personalizes strategy, and give you masterful, financial freedom focused on living your lifestyle dreams.

We're Palmy ➕ Nancy Kitti 〰️ The Kitti Sisters

A sister duo team obsessed with all things financial freedom, passive income, and apartment investing + apartment syndication, who turned a $2,000 bank account into a nine-figure empire.  Now, we're sharing with you the behind-the-scenes secrets of our wealth building strategy.

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