“What would you do in this market with $1 ml cash? We are at the top of the cycle and every asset seems a bubble close to bust? Sit tight and wait for another down turn, or find off market deals and flip? Living in Chicago , with high taxes and rising even more”
What a question! There are a few viable alternatives as to what to do. However, eventually it’s going to be you who makes that decision and then acts upon it, regardless of what I have to say.
The key is not necessarily what niche industry (of course I’m a huge fan of Self Storage) as there’s fact & opinion, and sometimes it may even turn into an argument, but look for certain fundamentals that are present in all of these.
Is Self Storage better than condo’s, better than multi-family, better than SFH‘s, better than private money? There’s the fundamentals that govern all of it.
So, maximize your strengths & minimize your weaknesses. Where is your current level of knowledge, experience, network – focus there lest you be the “new guy”. Do you need to invest in Chicago or can you focus on another market? Do you want to be the guy hustling & pounding the pavement looking for “deals” or do you want to be money guy who funds them? Lots of options besides what is the best real estate asset class that will survive what may be on the horizon. Because no one knows the answer to that. Not a shot at anyone, it’s just that no one can predict the future.
My advice, regardless of what niche, would be this (it’s basically the same as i just posted on the other thread):
1) Do not buy any challenging properties now; sell if you have any. (Anything that is already causing headache & heartache.)
2) Do not get over leveraged. Be sure that any investment can be stressed test and handle a decline (correction or collapse).
3) Position yourself (whether that’s waiting, or learning, or building relationships) to capitalize – both when times are good & when times are bad. Someone is typically doing well in any situation – be that guy, don’t follow the crowd.
So my best piece of advice would be this: DON’T BE AVERAGE.