Welcome to the Get Real podcast, your reality therapy for personal, business and real estate investing success. Angela Thomas and Ron Phillips of RP Capital are your hosts for the Get Real podcast… with the emphasis on REAL.
Today’s podcast addresses questions Angela and Ron have gotten lately about the real estate market. People are reading about market declines in California, Arizona and other places.
Their clients are wondering if this indicates a rush to the bottom similar to 2008/9. Ron feels that what’s happening now is a standard cycle that hits every 8 or 10 years, and that California prices are just normalizing from crazy highs.
And, the rule should be that when the numbers on a deal look good, then it’s a good time to buy. If the numbers don’t look good, it’s not a good time. That’s a pretty simple guideline for market timing.
Please don’t get hung up on appreciation. With RP Capital’s model, you have someone living in your property, paying for it, building equity for you and providing a tax benefit. Appreciation is not the only positive to real estate.
Also, different geographic markets differ economically. One can pretty much always find a market that has a rental rate that compares favorably to purchase prices. Ron and Angela find the Midwest generally fills that niche.
What’s inside:
- 4 types of real estate returns
- Hard to call top or bottom of any market type
- Discussion of real estate vs. stock market
- Own properties in different parts of the country
Mentioned in this episode:
Reach Ron & Angela: GetRealEstateSuccess.com
