Wow, how things have changed, quickly! If you’re still investing, I’d love to hear how you’re 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 of it is based on our real estate investment experience from 2008-2010.

1. do not stop Historically, real estate always works, you just need to adapt to changes in the market. Therefore:
   • stay flexible
   • Find out and secure financing.
   • stay involved in online networking groups, both local and national, to stay on top of the changes you need to know about as they happen.
2. We have increased our marketing. Why?
   • People are going to need money, which means selling their personal properties or those of their relatives. We want to be available when a need arises to offer whatever help we can.
   • Fewer investors are already buying due to fear of the future and lack of funding, so there hasn’t been a better time to be in the market in years!
3. Find out. What we have seen recently is exactly what we experienced in 2006-2007; everyone was getting into real estate investing because it was so easy. As business gets tougher now, those who are prepared, informed and educated have an incredible opportunity.
4. Buy for less. We all know that the future holds uncertainty. Price values ​​may fall a lot in the coming months/years. Sellers know this too, so many will want to sell sooner rather than later. They also realize that you are taking their risk when you buy, so they understand when you offer less than they expect. And, it is true, you are taking a risk. When you make an offer, make sure it’s a price you can live with if the value falls in the next 3-6 months.
5. Properties continue to sell wellso buy properties you can convert quickly – this is not a time to buy big rehabs!
6. Buy and sell virtually. This is the perfect time to learn how to transition your business to virtual. We are currently doing due diligence online, requesting permission to walk around the property and take photos, then ask the seller to send us photos of the interior or leave the property while we go in and take photos. Vendors appreciate our concern for their well-being. We request that you allow a tour of the property prior to closing to ensure your own photos do not leave out anything we should know.
7. Prepare for longer days on the market when selling Look at the days on the market for your local property to get an idea of ​​what to expect. As lenders begin to dry up and/or increase their loan requirements, there will be fewer qualified buyers and both the sale and closing will take longer.
8. Expect lenders to tighten loan requirements.
   • We have already seen private lenders stop lending due to fear of future risk and the need to keep their funds safe for themselves.
   • Many hard money lenders have stopped lending altogether because they were packaging up loans and selling them. Those loans are no longer purchased, so those lenders no longer lend.
   • Banks have stopped offering jumbo loans, which means they are already concerned and responding.
   • Almost everyone who continues to lend has begun to require that the borrower have more funds available, a higher credit score, and be a stronger applicant in every way. Plus, points and interest rates are rising.
9. Higher priced properties will be the first to slow downso focus on properties that are below the median price point for your area (and know what that price point is!).
10. Expect this “event” to last a while – possibly years. In 2008, the common response was that the worst was over and things were going to get better. “Things,” however, continued to get worse.

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

Do you agree/disagree with what I have shared?

What changes have you made or do you plan to make in the future?