Real estate investments in times of Covid


My, how things have changed – quick! If you’re still investing, I’d love to hear how you are adjusting and what you see for the future. I’ll start with some of the Covid changes we’ve already made.

NOTE: Much of what I share is what we are already experiencing and changing in our own business. Much is based on our experience with real estate investments from 2008 to 2010.

  1. Do not stop. Historically, real estate always works, you just have to adapt to changes in the market. Therefore:
    • stay flexible
    • Find out about and secure financing
    • Stay involved in online networking groups – both local and national – to keep up with changes that you need to know about right away
  2. We have strengthened our marketing. Why?
    • People will need money, which means they will be selling the property of their personal or family members. We want to be available when needed and offer our help.
    • There are already fewer investors buying for fear of the future and lack of funding, so there hasn’t been a better time to be in the market in years!
  3. Inform yourself. What we’ve seen lately is exactly what we saw in 2006-2007; Everyone started investing in real estate because it was so easy. As business now gets tougher, those who are prepared, informed, and trained have incredible opportunities.
  4. Buy for less. We all know there is uncertainty in the future. Inexpensive ones can fall sharply in the coming months / years. The sellers also know this, which is why many want to sell sooner rather than later. They also realize that you are taking their risk in buying, so if you offer less than they hope you will understand, they understand. And it’s true, you take risks. When making a quote, make sure it’s a price you can live with if it goes down in value over the next 3-6 months.
  5. Real estate is still selling wellSo buy properties that you can turn around quickly – this is no time to buy large rehab facilities!
  6. Buy and sell virtually. Now is the perfect time to learn how to move your business to virtual ones. We are currently doing due diligence online, asking for permission to walk around the property and taking photos, then ask the seller to either send us interior photos themselves or leave the property while we enter and take photos. Sellers value our concern for their wellbeing. We request that they allow a tour of the property prior to closing to ensure their own photos do not leave out anything we should be aware of.
  7. Prepare for longer market days when selling. Watch your local real estate market days to get an idea of ​​what to expect. As lenders begin to dry up and / or increase their loan needs, there will be fewer qualified buyers and both sales and closings will take longer.
  8. Expect lenders to tighten loan requirements.
    • We have seen private lenders stop lending for fear of future risks and the need to secure their funds for themselves.
    • Many hard cash lenders stopped lending altogether because they pooled and sold loans. These loans are no longer being bought, so these lenders are no longer making loans.
    • Banks have stopped offering jumbo loans, which means they are already concerned and are reacting.
    • Pretty much everyone who is still lending has started out with the borrower having more funds to hand, higher creditworthiness, and being a stronger applicant. They also increase the points and the interest rates.
  9. High-priced properties will be the first to slow downSo focus on the properties that are below the median price of your area (and you know what that price is!).
  10. Expect this “event” to continue for a while – possibly years. In 2008, the general response was that the worst was over and things were starting to get better. “Things” just got worse and worse.

Remember, we are very early on in the “new reality” and what is to come is difficult to predict. Stay vigilant, stay flexible, stay informed, stay in touch with other investors. There is always money to be made with real estate.

Do you agree / disagree with what I shared?

What changes have you made or are you planning for the future?


Source by Karen Rittenhouse