Here’s what The Kentucky Derby can teach us about investing now.
People ask me all the time, “Where should I invest in today’s market?” To answer this question, we need to go back to The Kentucky Derby.
If you didn’t catch it, a horse named Rich Strike came out of nowhere and won! He only cost $30,000, which isn’t a lot for a top-tier racing horse. In fact, he was only in the race because a different horse had to pull out at the last minute.
What can we learn from this? You don’t need to be born with a silver spoon or have millions of dollars to begin investing. Instead, you need determination, heart, and especially timing. Timing is everything, so what does our current time tell us about where you should invest?
"Rising rates present a unique opportunity for investors."
In case you don’t know, interest rates are rising. A couple of months ago, you could have received a rate at around 2.75%. Now, your rate will be closer to 5.5%. I’ve been around long enough to know that anything under 8% is a fantastic rate; however, these rates are high by today’s standards.
When rates were low, it was difficult for investors to buy $200,000 or $300,000 properties because first-time home buyers were flooding the market. Now, many of these buyers are gone due to our higher rates. This change won’t affect you as an investor because our rates were higher anyways.
Just like Rich Strike, this is your time to act. For the first time in two-and-a-half years, you won’t be competing with first-time buyers. There are fantastic investment properties in San Antonio and the surrounding areas. Rents are high, but there are more unorthodox ways to make money from your investments. If you’d like to know more about them, just reach out.
Now is the time to be brave. If you have questions about today’s topic or anything else, please call or email me. I look forward to hearing from you!