Investment in Covid’s time
How things have changed – quickly! If you are still investing, I would like to know how you are adjusting your investment and what you see for the future.
Much of what I shared is what we are already experiencing and changing in our business. It is based on our past real estate investment experience.
1. Do not stop, Historically, the real estate sector always works, you simply have to adapt to market changes. Therefore: stay flexible, know, and guarantee to finance.
Get involved in groups of online networks – both local and national – to stay abreast of the changes that you need to be aware of when they occur.
2. We have increased our marketing. Because?, People will need money, which means selling the properties of their personal or family members. We want to be available when there is a need to offer the help we can.
There are fewer investors already buying because of fear of the future and lack of funding, so there hasn’t been a better time to be on the market for years!
3. Get Educated, What we have seen recently is exactly what we experienced in the past, everyone was investing in real estate because it was so easy. As the business becomes more difficult now, those who are prepared, informed, and educated have incredible opportunities.
4. Invest for less, We all know that the future is uncertain. Price values could drop significantly in the coming months/years. Sellers also know this, which is why many will want to sell sooner rather than later.
They also realize that you are taking their risk when you shop, so they understand when you offer less than they hope for. And it’s true, you’re taking risks. When you investing, make sure it is a price you can live with if the value decreases in the next 3-6 months.
5. The properties are still selling well, so buy a property that you can turn around quickly – it’s not the time to buy large property, invest in a small property.
6. Buy and sell virtually, This is the perfect time to learn how to turn your business into a virtual one. We are currently doing online due diligence, asking for permission to walk around the property and take photos, then ask the seller to send us internal photos or to leave the property as we enter and take photos.
Sellers appreciate our concern for their well-being. We require that they allow a property to pass before closing to ensure that their photos do not omit something we should know.
7. Prepare for longer days on the market during the sale, See the days on the market of your local properties to get an idea of what to expect. As lenders begin to dry up and / or increase their lending needs, there will be fewer qualified buyers and both sales and closings will take longer.
8. It is Expected that lender will tighten loaning requirement, We have already seen private lenders stop lending because of fear of future risk and the need to keep their funds safe for themselves.
Banks have stopped offering huge loans, which means they are already worried and responding. Besides, points and interest rates are decreasing.
Higher priced properties will be the first to slow down, so focus on properties that are below the average price range in your area, and know what that price range is.
Expect this “event” to last for a while – maybe years. In the past, the common response was that the worst had passed and things would start to improve. The “things”, however, have continued to deteriorate.
Remember, we are very early in the “new reality” and what is coming is difficult to predict. Be aware, stay flexible, stay informed, stay in touch with other investors.
There is always money to be made in the real estate sector.
Considering the current situation What changes have you made or plan to proceed for investment do let me know in the below comment?