In light of the pandemic, there’s one question on every investor’s mind: “Is now a good time to invest in real estate?” There are plenty of reasons why the idea of investing looks attractive right now, and if you’re looking to make a quick buck selling a property, don’t miss out on what’s happening today. So, our answer is yes, now is the best time to invest in real estate, and we’ll tell you why.
Trending on Near High Prices
Real estate is all about supply and demand. When there’s a surplus of properties with no buyers the prices drop, but when there’s limited property and a high demand those prices skyrocket. That’s the case today for many markets, and as we’re lifting stay at home orders and exiting this pandemic, there are still far fewer properties available than should be. Additionally, we’re dumping trillions of dollars into our economy, causing inflation to skyrocket. So as inventory remains low, the prices of homes will also rise in response to inflation as well as to low inventory. Making the old adage that a dollar today is better than a dollar tomorrow even more true and relevant.
Near-Zero Interest Rates
Minimal inventory availability during this pandemic is also coupled with near-zero interest rates for many markets. This benefits the investor, because while interest rates are low, lending options aren’t as available, which means cash offers are in a position to get far better deals. This way, you’re able to buy the property for cash flow (rental) or for a quick flip (wholesale) now, but you also have the added benefit of the property appreciating in value years down the line. One thing you can count on is that no matter what, even in the wake of a pandemic, people are still going to need somewhere to live.
Opportunity to Create Demand
The pandemic has shifted a lot of things in 2020, but one thing that is really cemented is the lack of inventory on the market in key areas across the country. Especially since June and the quarantine being lifted in some parts of the country, the industry has been locked in a very solid seller advantaged position. Another change with the same result is that with so many others still on a shelter-at-home order, the only people who are selling properties now are those who need to sell. This benefits investors with “ins” to homes that aren’t yet on the market because they’re able to purchase properties at lower than market value and flip them much easier for a profit.
One thing to remember though is that these deals go quickly. So, if you don’t already have a relationship with a lender, a good recommendation is to reach out to them for pre-approval before you’ve successfully put in an offer. That way, you’re able to increase your chances of purchasing the property and going through closing in one piece.
Sellers may be waiting to see how the economy will fair, but for those investors who snatch up deals before they’re generally available, they are going be able to snag some incredible deals from people who want to off-load their property with as few hurdles and waiting as possible.
That said, if you’re worried about finding a seller, enlist our team at Call Motivated Sellers to help. By using our services, you can find properties that haven’t yet been made available to the public. Here, you can capitalize on the secrecy of the product and make a profit by naming your price.
Also to this point, if you’re among the camp that decides to wait, know that as Q3 and Q4 2020 unfold, it’s more likely that some owners will default due to lack of work, and prior to that rite being issued will be looking for ways to save the equity they have in the home by offloading the property quickly -hopefully to you. So as the world returns to “normal” and the true impact on the economy is understood, there could likely be an increase in properties that pop up on the market, but not enough to lower the end sale price by much. This isn’t 2008 and too large a percentage of homeowners have more than 20% equity in their properties. So, the loan abandonment issue in 2008 isn’t likely to repeat itself again.
The Bottom Line
Despite the uncertainties of the economy and market trends due to COVID-19, there’s still a huge opportunity in finding successful opportunities. Whether it’s a buyer’s or a seller’s market, those who know the real estate industry best are well aware that real estate is often a long-term investment (unless you’re looking to wholesale a property), and many buyers end up occupying a property for 7 to 10 years before cashing in on their investment. Ultimately, getting into real estate and real estate investing is a cornerstone of building wealth and a risk-tolerant portfolio.
So if you’d like to get into real estate investing, you’ll need to first find a buyer, and when the inventory is so hard to come by, it helps to have a team of prospectors to aid you in finding those opportunities that are available. That’s where we come into the picture. At Call Motivated Sellers we go find the people in your area who want to sell you their property, begin to build the relationship, and then provide a warm handoff for you to seal the deal. It’s a beautiful thing to have sellers at the ready when otherwise it’s a complete seller’s market, but with our help, you’ll be enabled to succeed even in this very low inventory environment.
Be sure to contact us via our online form to get more information on our team and services.