As we wrap up the year, a question being asked a lot is “Should I invest in real estate in 2025?” Especially coming off the year we just had in 2024, investors are wondering if next year will “be the year” they finally start adding multifamily real estate to their portfolios.
With markets changing and economic uncertainty, the timing can feel tricky—even intimidating. But I’m here to tell you that waiting for the “perfect time” can be a mistake. Let’s dive into why this mindset might hold you back and what you can do to start building your wealth today.
Why Timing the Market is a Trap
The biggest mistake I see investors make is trying to time the market. It sounds logical: buy low, sell high. But here’s the problem—you’ll end up waiting forever for the “perfect” conditions.
Just look at the past 5 years:
From 2015 to 2020, people complained because they couldn’t find good deals because the market was too hot. Lots of times you had ot make non-refundable deposits to get a deal that didn’t always work out. It was challenging.
Then in early 2020 when COVID hit, the world stopped, including real estate. No one was buying anything for a short period of time. Experts predicted that tenants would stop paying their rent, but then something surprising happened: rents started going up.
We picked up some of our best deals during that time and sold them for massive profits to our investors. Then, very quickly, the market swung from fear to greed, and by 2021, it was back to very competitive and non-refundable deposits.
The market kept going up and by the summer of ‘21, inflation was suddenly at 9%. Rents skyrocketed by 25% by the end of 2022, increasing valuations. We peaked in that summer of 2022, and many agree that right now we’re at the bottom of the market.
At almost every point when the market was “too hot” or “too cold” or “not the right time yet,” there were many investors who stayed on the sidelines. They kept waiting and waiting while we always had our eyes open for deals we could bring to our investors.
Why Real Estate is a Smart Move Right Now
You might be wondering, “Why invest in real estate when the news talks about foreclosures and slightly dipping rents?”
Well firstly, those headlines talk about the trends nationwide – actual performance differs from market to market. And second, despite all that’s being said about multifamily real estate, the people still need an affordable place to live:
- Strong demand: With homeownership becoming less affordable, more people are renting. This drives up demand for multifamily properties.
- Limited supply: America is short about 3.2 million homes. Construction costs are skyrocketing, making it harder to add supply. This creates upward pressure on rents.
- Stabilizing markets: Inflation is easing, interest rates are stabilizing, and we’re nearing the bottom of the market cycle. Prices are projected to rise as cap rates normalize.
Why Passive Investing Might Be the Answer for You
Active investing isn’t for everyone.
Passive investing is best for high income earners who are busy. So if you’re working in a demanding field like medicine, finance, or technology,then you’re probably working 50+ hours a week.
And if that’s you, you’re probably also spending another 10 hours a week trying to acquire, oversee construction, and handle tenants for the rental properties to replace your income. That’s a lot of time you’re spending to make passive income.
That’s why passive investing is such a game-changer. Instead of doing all the heavy lifting, you can invest in deals run by experienced operators—like us at Nighthawk Equity.
Here’s who passive investing is perfect for:
- Busy professionals: If your career in medicine, tech, or finance keeps you busy, passive investing helps you build wealth without taking up all your free time.
- Career builders: Want to focus on advancing your business or climbing the corporate ladder? Let your money grow in the background.
- Capital holders: Got cash just sitting around? Inflation can eat away at its value. A passive real estate deal can put that money to work.
- People who dislike managing real estate: Let’s face it—not everyone wants to deal with tenants or property upkeep. Passive investing gives you all the benefits without the headaches.
How to Take Action Today
If you’re ready to stop waiting and start investing, there are a few steps you can take to get started. First, it’s important to educate yourself about the fundamentals of passive investing. Learn how to evaluate operators and deals to make informed decisions.
Next, think about your goals. Are you aiming for cash flow, appreciation, or a mix of both? Knowing what you want will help you focus and narrow your options.
Partnering with experts is another key step. In my opinion, this is the most important step. Who you invest with matters. Work with trusted operators who have a proven track record. At Nighthawk Equity, we’ve managed over $350 million in real estate and can guide you through the process with ease.
Finally, take that first step. Visit nighthawkequity.com to explore our latest opportunities. Book a call with us to discuss your goals and see how we can help you get started.
Final Thoughts
The truth is, there’s never a perfect time to invest in real estate. When’s the best time to plant a tree? 20 years ago. When’s the second best time to plant a tree? Today.
It takes time for your investments to grow, so start now. Don’t let fear or market conditions hold you back. Instead, focus on the long-term fundamentals that make real estate one of the best wealth-building strategies out there.
If you’re ready to take the leap, check out our passive investment opportunities at Nighthawk Equity. Let’s build your financial freedom together. I can’t wait to see what we accomplish!
