As the coronavirus continues to impact everything, including the real estate market, now is the time to reevaluate and conduct our lives by making sound decisions that will influence our future. The real estate industry is a significant area hit by the coronavirus crisis. Imagine an area that has been actively solving both residential and commercial housing needs now drawing less attention due to people now suspending their ambitious real estate purchase plan to focus on their families, homeschooling their children, caring for their elderly parents or grandparents, and all the while, stressed about how to pay their bills, stay alive and remain healthy. If you’re a real estate investor, here are a few things you can do during this unprecedented period to sustain your business or portfolio and turn your situations around.
Reduce Your Rent or Create Payment Plans
It might sound unpleasant, but it is the right decision to make during this pandemic. Due to increased unemployment rates with businesses impacted by the coronavirus, many parts of the country have now put a moratorium on evictions from 60 days to six months. In order to maintain the smooth and efficient running of your rental real estate, it would be fair and wise to keep your rental property rent reasonably priced to enable your tenants to pay consistently and on time, without delay to protect your passive income and monthly cashflow. After all, it is a pandemic, and we are all affected in one way or another. A viable alternative to this option of rental rate reduction, is creating a financially feasible monthly payment plan with your tenants.
Buy Distressed Assets
Now you can take advantage of the impending influx and invest in low-cost rental property. With many people struggling to pay their mortgages, there has been a massive increase in foreclosure filings that will result in the availability of inventory with great buying opportunities from these types of distressed deals selling below market value. What does that mean for you? It means you are able to invest with less to build your rental property portfolio with increased cashflow, lower risk, and increased equity you receive at the time of your purchase! As a long term cashflow or growth (appreciation) investor, you can capitalize on these downturns to set yourself up for a 5 to 10 year plan or longer of receiving infinite returns.
Keep an Eye on the Market
The coronavirus virus will soon be gone, and life will soon return to normal. Although no one can predict exactly when it will end, we can be sure it will. Historically, the market always ebbs and flows in cycles. In real estate, those market cycles tend to lean towards every 10 years. In the stock market, those market cycles, primarily with the SNP, tend to happen every 1.8 years on average! With the race dedicated to vaccinating the entire world, we might start to witness some quick changes, and that’s why as an investor, you have to keep up with the market so you can always make informed decisions and stay ahead of the curve. If you are heavily invested in the stock market, you may want to consider reallocating any growth or principal investments into real estate to stabilize your portfolio and receive double digit returns on secured and fully insured tangible assets like we provide here at IMPERIUM ENTERPRISE.
We are in a period of uncertainty, there’s no doubt about it. However, if you keep yourself abreast of the market insights and have a knowledgeable and experienced team to help you strategize so you can capitalize during this time, there are increased chances you’ll avoid mistakes and achieve a considerable return on your investment while protecting and growing your family’s financial freedom.
Get a Professional Advisor
These are challenging times in the global economy which is beyond our individual control. At times it can be tough to arrive at a definitive conclusion, especially if you have very little to no knowledge of the industry. If you have ever found yourself studying or researching a trend in the industry to have a glimpse of what it means to the market and your individual investment plan, then working with an experienced real estate adviser would make the most sense during this coronavirus pandemic.
We may already be seeing early evidence of improvements, unlike months ago when the world stood still. Today, normalcy is gradually returning to the world at large but it will never be “the same”. According to the National Association of Realtors, the market has improved in recent months, and some first-time buyers are already feeling the urge to buy to avoid higher prices if they wait and higher interest rates. Are you still skeptical about making home buying investments, you should see the changes as an opportunity rather than an obstacle.
Yes, now is the right time in the real estate market to purchase property during the coronavirus pandemic in the right markets to achieve your investment goals!
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