We have been investing in both residential and commercial real estate for over 17 years now. Over the years, a lot has changed, but there is one unfailing constant. One of the questions we get asked most by our investors is – How do I know this is a good time to invest?

Well, the answer is – it depends. In every single lead conversation we have with our investors, our question for them is – what is your goal? What are you trying to achieve?

Responses range from investors who want to want financial freedom via a passive income source, to those who are trying to escape stock market volatility and diversify their portfolio, to those wanting a quick win because they’ve heard some success story from their neighbor’s friend, to those looking for potential long-term appreciation with stable cash flow in the interim.

But the majority of these investors tend to see markets in one of two states: climbing or falling. This view leads people to invest at market tops and sell at market bottoms. What we try to explain to them is that the real estate market is actually a cycle, in which there are technically five phases – working up from market recovery, down to recession. Each phase may last a few months to a few years, depending on the market. What's more, each phase rewards very different investment strategies.

People may regret short-term investments when they see lower interest rates or fluctuations in certain markets. But every market is different, and requires a knowledge of which phase that market is in and what factors are driving it from one phase to the next. Rigorous analysis and due diligence, combined with a targeted strategy, can preserve wealth, generate stable, passive cash flow, and grow your investment portfolio.

In our experience, it is not “when” is it a good time, rather, it’s about “where” to look and “what” your goals are. There are always opportunities out there – we look for areas that are growing, that have stable or growing economies. We avoid over-saturated markets; we run the analysis and ensure that there is sustainable demand. We look for distressed properties that have suffered from deferred maintenance or poor management, but are in prime locations that are well-positioned.

If you’re able to correctly identify the phase each market is currently in, good investments can be found whether the market is in a recession or expansion period, by adapting your investment criteria and exit strategy.

BENA Capital's funds provide investors with ease of entry, reliable quarterly cash flow, and portfolio diversification. Our proven strategies emphasize sound investing in carefully researched, quality properties that have steady, long-term capital appreciation potential.