Let’s keep our heads up
Emotions are high. Everyone is feeling the pinch and a freedom-loving country is being told to sit tight and wait patiently while the experts do what’s necessary. That’s why it’s more important than ever to focus on what we DO know and what we CAN do right now.
What do we know? We know that this matter is temporary. The economy as a whole and real estate market were doing great until the virus came. Since the source of the problem was external, it is likely that our recovery will be relatively swift. However, the current situation is dicey, so now is the time to plan your strategy for riding out this “storm.” We also know that there is going to be a little compensation from the government in exchange for all the sacrifices being made right now to compensate for lost income.
What can we do? We can hope for the best and prepare for the worst.
- If you have a house on the market, consider lowering your price or pulling off the market. Look into your refinance options and get the process started, if only as a last resort.
- If you are a landlord, figure out how to make your mortgage payments if the rent doesn’t come in next month (or more). If you are worried about exhausting your reserves, apply for a line of credit.
- If you can buy, now is a great time to find a deal. First, talk to your lender and make sure they are still in a position to lend the money or if any of their criteria has changed. Next, adjust your numbers for the times. For flips, your after-repair value (ARV) needs to come down and your timeline needs to be extended. This means your buy price is going to be lower than under normal circumstances. Many sellers will hold out for the market to turn around, but some will be eager to sell. It’s worth making the offer.
- Commit to personal growth. Read a success book, or listen to an audiobook. This era of a pandemic will be part of your story as a real estate investor. Learn from those who have navigated a previous recession or challenge. Be determined to survive and thrive.
- Lastly, be grateful. We live in the USA. The odds are on our side. As bad as it is right now, it could be a lot worse. Look for the silver lining in every frustrating situation.
We are witnessing history. We have a lot to be optimistic about, but the day by day nature of the situation is enough to put anyone on edge. Fortunately, real estate is a good investment in any market because people always need a place to live. So, keep your head up. It’s the only way to spot the deal.