What a way things have changed in the last few years - fast! In case you're investing at all, I'd like to hear from you about how you're making adjustments and what you anticipate for the future kingdom valley. Let's start with the Covid changes we've made already.
NOTE: Much of what I present is what we're already experiencing and changing in our business. A lot of it is based on our experience in real estate investing.
- Don't stop. Historically, real estate always does the job, but you have to be ready for market shifts. Therefore:
- Stay flexible
- find out about and secure funding
- Stay involved in online social networking groups , both national and local to stay abreast of changes you need to be aware of when they occur.
- We've grown our marketing. Why?
- There will be a need for cash, which could mean selling their family or personal members' homes. We'd like to be there whenever a need arises, to offer what help we can.
- Investors aren't buying already because of fear of the future and lack of funding, so there's been no better time to get into the market in years!
- Learn more about HTML0. What we've seen in recent times is similar to what we saw in 2006-2007: everybody was involved in real investment in real estate because it was easy. As the market becomes more difficult now, those who are prepared educated, knowledgeable, and informed have an incredible chance.
- Purchase for less. We all know the future can be a bit uncertain. Price values may drop greatly in the coming months/years. Sellers are aware of this, too, which is why many would prefer to sell earlier instead of later. They also know that you are taking on their risk when you buy and are aware the risk when you make offers that are less than they hope for. In reality, you're taking a the risk. Make sure when you make an offer , you can be comfortable with in the event that the value falls over the next three months.
- Properties are still selling well So, you should consider buying properties you can flip quickly It's not the time to buy large rehabs!
- Buy and sell online. This is the perfect time to understand how to convert your business into virtual. We are currently conducting due diligence online in order to get permission to go around the property and take pictures, then asking sellers to give us the interior photos or quit the property while we go in and take pictures. Sellers appreciate our attention to their health. We're requiring them to let us have a look-through of the property prior to closing to ensure that their photos do not omit something we should know about.
- Make sure you are prepared for more days on the market when you sell. Keep track of your local properties days-on market to know what to anticipate. When lenders start drying or raise their requirements for borrowing, there will be fewer qualified buyers and both selling and closings will take longer.
- Don't be surprised if lenders tighten their borrowing requirements. .
- Private lenders have been known to stop lending due the fear of future risk and a necessity to ensure that their funds are secure for themselves.
- Many hard money lenders have stopped lending in the whole because they had been bundling loan and selling them. These loans aren't being bought, which means that these lenders have stopped lending.
- Banks have stopped offering loans with jumbo amounts and are in a state of anxiety and have begun to respond.
- The majority of lenders has been demanding that the borrower has more money in their bank account and a higher credit score and is a better candidate all around. Additionally, they're increasing credit points as well as interest rates.
- Properties with higher prices will be the first to slow therefore, you should focus on properties below your area's median price point (and know what that cost point will be! ).
- Expect this "event" to last for some time and possibly for some years. In 2008, the most common opinion was that the worst was over and things were going to start getting better. "Things" However, things were getting worse.
Remember, we're very early into"the "new reality" and what's coming is difficult to know. Stay alert, remain flexible, be aware, stay in touch with other investors. There's always money to be made in real estate.