Over the years, real estate investing has become a popular option to strengthen investment portfolios and to create a passive flow of income. While this aspect of investing is constantly changing, major changes have recently taken place as a result of the Coronavirus. With many areas entering stay at home orders with fewer people venturing out and concerns over the virus in general, many types of businesses have slowed down. As you approach your real estate investing during the aftermath of this pandemic, there are certain tips you need to follow to ensure your investments continue to provide the return you’re looking for.
Don’t Give Up
Although it may feel as if the world has stopped entirely, it’s important not to give up on your real estate investing ventures. In fact, now is a great time to keep going because prices and interest rates will be lower and you’ll be more likely to get the properties you’re interested in. However, this doesn’t mean you shouldn’t make any changes to how you do things. It’s critical to remain flexible, learn how to obtain secure funding and continue to network, even if it’s online.
Increase Your Marketing
Even if it feels as if no one is buying or selling, the truth is a lot of people are in need of money right now. This means they’re more likely to let go of properties they don’t really need or they were holding onto for sentimental reasons for the sake of making money to live. Increasing your marketing efforts will help you reach these people and find properties for sale you might not otherwise encounter.
Buy for Less
Don’t be afraid to offer less than the asking price when you do buy property. Sellers are understanding people will be less willing to pay more for property at this time so they expect to receive these lower offers. However, keep in mind there’s a chance property values may continue to drop for a period of time, so you’ll need to be prepared to absorb that drop or wait until prices rise again before selling.
Complete Virtual Transactions
More companies are going to contactless interactions where they meet through video conferencing and telephone calls, rather than in person. It’s easy to look for properties online or list them for sale online. While people will want to see a property before they buy it, for the most part, you can complete most of the steps involved in buying and selling can be done virtually.
Prepare for Long Periods on the Market
You may be used to buying a property, flipping it and selling it for a profit in a relatively short period of time. However, this isn’t necessarily going to happen at this point in time. For many investors, buying properties you intend to rent out may be more lucrative for the time being. However, if you do choose to purchase a property you intend to sell, be prepared for it to spend a longer amount of time on the market before it sells. Higher priced properties will sell slower than lower priced properties.
Expect More Stringent Lending Requirements
Lenders are also tightening their belts. If the last housing market crash taught them anything, it was to be careful about lending money to individuals who are in a rough financial situation. They aren’t interested in falling victim to this problem again. Therefore, they have made it more difficult to qualify for loans, which can have an impact on your ability to purchase properties.