6 Things You Can Do NOW to Be Prepared as an Investor Post-Pandemic
As an investor, tracking and securing a deal is invigorating. The hunt is tantalizing, talking with sellers gets the blood rushing, making offers is nerve-wracking but exciting. (Well, I should only speak for myself. This is what it does for me.)
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It takes some special characteristics to become a successful investor. I believe one of the most essential traits is drive, or self-motivation.
But how do you keep your drive while being quarantined for an uncertain amount of time and without experiencing the rush that investing previously provided?
At a tragic time like this, it’s easy for us to focus on the negatives that are all around us. We can look at the increasing number of infected people, the rising death toll, the innumerable layoffs, the demise of the financial markets, and the ignorance of our politicians—just to name a few.
This crisis and its effects can definitely kill productivity. So today, I want to take a moment to discuss five things you can do to remain productive throughout the coronavirus crisis.
6 Things You Can Do to Remain Productive
1. Follow Up On Old Leads
Follow up, follow up, follow up.
If you don’t know, the art of the subtle follow-up is essential in securing deals. Take this time to contact old leads that were not interested in your prior offer—especially those who did not accept your offer due to price.
Guess what? Things are different; the market is changing.
Those who were interested in listing their house are reconsidering. Due to social distancing, real estate agents are not showing houses, and buyers are not touring properties.
Therefore, this is an ideal time to re-engage that seller, because the market is getting very cold.
This is also the best time to reach sellers, because 95 percent of them are likely to be at home. Getting them on the phone should be very easy. They might have nothing to do. So, give them something to think about, give them a fresh perspective on what you can offer them. Provide a service.
2. Contact & Build Your Buyers List
This one is specifically for wholesalers.
True real estate investors have been waiting for a moment like this for years. No, I'm not referring to the pandemic but the decline in the market and possible recession.
I know there are investors (including myself ) who have been standing by, patiently waiting for an opportunity to get under-market deals. It’s been a seller’s market for quite a while, and now the tables are turning.
Use this time to vet your buyers. Find out who is ready and who is sitting on the fence.
Also, use social media to target new buyers. One strategy we’re currently doing is sending out prior deals we completed—with all the numbers on what we wholesaled it for and what the investor sold it for—and simply asking in all the investor Facebook groups and on Instagram who would like deals like these. We simply ask them to DM (direct message) us with their contact info.
3. Contact Real Estate Agents
Again, I can’t stress this enough, real estate investing is about marketing and relationships. This is a great time to research all the fix and flips in your target market and see who the listing agent was on those deals.
Why, you ask?
These real estate agents work with other investors. What better way for agents to remain viable during a time of crisis or recession than to be able to provide their investors with off-market deals.
If you have access to the MLS, you can get the agent's contact info. Just give them a call! Believe me, most real estate agents love to talk shop anyway.
Let them know you provide direct-to-seller off-market opportunities for investors, and it would be beneficial for them to be able to provide these deals to their buyer pool.
It’s just another great way to reach more buyers!
If you don’t have MLS access, you can use Redfin, as well.
4. Position Yourself Well Financially
Although no one knows what the future will look like for lending, those who are positioned well with good credit and access to capital will likely benefit from these turbulent times.
Use this downtime to re-evaluate your finances. Then, write down your post-pandemic objectives and goals, and create a strategy for achieving them.
5. Get Feedback
Similar to No. 2, you want to reach out to your existing buyers/investors and feel out their post-pandemic plans. This is a great time to get feedback on what they believe the market will look like, which areas they believe will suffer the most, and how they predict lending will be impacted.
This information can help you align your strategic plan with theirs.
6. Evaluate Yourself and/or Your Business
Let’s use this time to be prepared for what comes next. Review your KPIs (key performance indicators). What is working in your business and what is not? Make adjustments accordingly.
Here are just a few things you can review:
- Which team members are productive
- Which marketing strategy is working
- What area is yielding the most activity
- What is your average close amount
Do not let the coronavirus crisis interrupt your productivity and creativity. These are a few things we’re doing while quarantined to be prepared once this is all over.
Although no one knows what things will look like afterward, a savvy investor is a prepared investor. So take this time to get yourself ready to hit the ground running once it’s all over.
Join the discussion below.