My, how stuff has changed – quickly! If you’re still investing, I’d desire to hear how you’re adjusting and any particular item for the near future. I’ll get started with some of the Covid changes we’ve already made.
NOTE: Much of what I share ‘s what we’re already experiencing and changing inside our own business. Much is depending on our 2008-2010 property investing experience.
Don't stop. Historically, real estate investment always works, you just need to adapt to market changes. Therefore: stay flexible learn about and secure funding stay involved with online networking groups - both local and national - to settle abreast of changes you ought to be aware of because they happen. We've increased our marketing. Why? People will want money this means selling their personal or family members' properties. We want to be accessible when a need arises to provide what help you can. There are fewer investors buying already as a result of fear of the long term and insufficient funding, so there were a better time for it to be in this market in years! Get educated. What we've seen recently is what we experienced with 2006-2007; individuals were getting into property investing because it was easy. As the business grows more difficult now, individuals who are prepared, informed, and educated have incredible opportunity. Buy for no more. We all know the long run holds uncertainty. Price values may drop greatly inside coming months/years. Sellers realize that, too, which explains why many will want to sell at some point. They also recognize that you're taking for their risk if you buy, so that they understand once you offer below they a cure for. And, the fact remains, you practice on risk. Make sure whenever you make a deal that it's a cost you can deal with if the value drops within the next 3-6 months. Properties remain selling well, so buy properties you may turn quickly - this is simply not a time for it to buy large rehabs! Buy and then sell virtually. This is the perfect time for it to learn how to transition your company to virtual. We are currently doing homework online, asking permission to run around the home and property and take photos, then asking the vendor to either send us interior photos themselves or even leave the house while we enter and take photos. Sellers appreciate our concern for well being. We are requiring they allow home walk-through before closing to insure their particular photos usually do not omit something we ought to know about. Prepare for a longer time days on market when selling. Watch your local property days-on-market on an idea of what to anticipate. As lenders continue to dry up and/or boost their borrowing requirements, it will have fewer qualified buyers and both selling and closings is going to take longer. Expect lenders to tighten borrowing requirements. We've already seen private lenders stop lending due to nervous about future risk and also a need to keep their funds secure for their own reasons. Many hard money lenders have stopped lending completely because they were bundling loans and selling them. Those loans shall no longer be being purchased, so those lenders shall no longer be lending. Banks have stopped offering jumbo loans, which suggests they're already concerned and responding. Pretty much anyone still lending initiated a policy of requiring how the borrower has more funds around, higher credit worthiness, and is particularly a stronger applicant all the way around. Plus, they're increasing points and mortgage rates. Higher priced properties may be the first to slow, so target the properties which are below your area's median price (and determine what that selling price is!). Expect this "event" to are a while - possibly years. In 2008, the most popular response was that this worst was over and things were going to start to get better. "Things", however, continued to obtain worse.
Remember, we’re very early from the “new reality” and what’s coming is actually difficult to predict. Stay aware, stay flexible, stay informed, remain active in other investors. There’s always money being made in real-estate.
Do you agree/disagree in what I’ve shared?
What changes perhaps you have made or do you plan to generate going forward?
My name is Karen Rittenhouse and I’ve been investing in real estate investment full time since 2004. Since then, we’ve dealt with hundreds of properties.