Has COVID-19 Threatened Your Investing Confidence? Press On—Here’s Why

Has COVID-19 Threatened Your Investing Confidence? Press On—Here’s Why

3 min read
Tamar Hermes

Tamar Hermes is a full-time real estate investor and educator. After building successful businesses in the retail and entertainment industries, she turned her attention to real estate with a mission to get more women to become investors and continue to build her portfolio. Tamar has been investing for over 20 years with a focus on appreciation with buy and hold single-family homes and duplexes in Los Angeles. In the past few years, she has expanded her portfolio to include passive multi-family investments across multiple states, private lending, and Airbnb properties. She bought her first duplex when she was 28.

Experience
As an educator and advocate for women to become educated and invest in real estate to grow wealth, Tamar focuses her time empowering and educating women across the country through her masterclass, The Real Deal Formula. She also coaches and consults women and couples privately about the opportunities to build their assets through real estate and supports them to connect with reliable partnerships through her Wealth Warrior Woman Alliance.

Tamar always had a knack for saving money, but it took her years to discover there were other ways to earn income besides working a 9-5 job. She now firmly believes financial freedom is possible through real estate and understands the importance of knowing how to allocate and invest your money and protect assets is a critical piece of sustaining financial independence and creating a legacy.

Tamar currently lives in Los Angeles with her husband of 18 years and her two children. They plan to relocate to Austin at the end of 2020. When she isn’t teaching, reading, or learning more about real estate investing and self-development, you can find her on a hiking trail with her rescue terrier Teena, listening to the BiggerPockets Podcast.

She also loves traveling, yoga, hosting dinner parties with friends, supporting her favorite non-profits, hanging out with her Gobundance Women’s’ Tribe, and binge-watching Curb Your Enthusiasm. She currently serves as the co-director of the Los Angeles Chapter of The Mona Foundation, which has worked for 20 years to alleviate poverty through gender equality and education around the world.

Tamar’s first book on real estate investing for women will be published this year.

Education
Before Tamar discovered real estate investing, she attended Pitzer College and the American Academy of Rome. She majored in communications and fine arts.

Accreditations
In addition to growing her portfolio in real estate, Tamar became a certified life coach, holds a real estate license in California, and studied finance so that she could master the knowledge she needed to own her financial destiny.

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When the financial times are good, it is hard to remember there was ever a time when they were not.

For the past 10 years, everyone has been jumping on the real estate investing wagon. Many profited big, but some people were still nervous about jumping in and were waiting for the “right time.”

Even as a successful real estate investor, I feel like I missed the boat on a few opportunities and got started on strategies too near to the top of the market.

Handling Pre-COVID-19 Purchases

Last month, I closed on two Airbnb homes in Gatlinburg, Tennessee.

Yes, it is home to Dollyworld and the Smoky Mountains. Business Insider sang the region’s praises in 2015, writing, “The Great Smoky Mountains National Park boasts an unparalleled location. Spanning both East Tennessee and North Carolina, the Smokies are just a day’s drive from over 60 percent of the nation’s population. With 9 million annual visitors, the GSMNP is the most visited national park in the United States!”

In a fantastic BiggerPockets Podcast, Avery Carl also talked about all her booming Airbnb properties in Gatlinburg. It seemed like a fantastic place to invest. And it likely will be, too! Just not for the next few months (or maybe a bit longer).

Short-term rentals were unstoppable a few weeks back. Then—boom—the COVID-19 outbreak stopped everything in its tracks. We are currently advertising the homes as a “luxury quarantine hideaway” until the park and tourist areas reopen.

I could easily be discouraged. History indicated that a correction was looming, as it has every 10 years. I should’ve known!

I knew that I was paying top dollar for the homes but believed the Smoky Mountains would never lose traffic for any reason. Naturally, no one predicted a global pandemic.

There’s my confidence strike number one.

At this time, I could become frustrated that the 20% monthly profit I conservatively calculated may go into the negatives for the unforeseen future.

My confidence starts to shake harder now.

If this can happen, how can anyone possibly invest in real estate?

Related: Airbnb & Coronavirus: How to Survive Short-Term Rental Losses

Decisions During a Pandemic

My inner dialogue could be saying, “I don’t know what I am doing in the Airbnb market,” or, “Real estate is too risky!”

As Brandon Turner says, “I should just go watch Netflix and let my money earn .002% in the bank.”

At least then my money will be safe. I would with 99% certainty—unless Wells Fargo Bank goes out of business—know where my money is.

If COVID-19 has shown us anything, it is that the world is unpredictable. There will always be variables we cannot control. In real estate investing, there will be variables we cannot see or predict.

The other side of the certainty from leaving your money in the bank is that you will never reach financial freedom. You will always be stuck working for someone or chasing the next dollar because you have not utilized the power of real estate or investing.

Investing is a vehicle that will grow your wealth. But there is no money-back guarantee.

What I can count on is my dedication to continue growing my wealth in real estate and navigating through the changing times. I can count on analyzing deals even better than before. I can count on my buy and hold properties to balance out the temporary loss of revenue from the new Gatlinburg homes.

Ultimately, who will be further ahead: The person who takes a chance, or the one who sits backs and watches because they are afraid of not being able to control every variable of a real estate purchase?

No one knows with any certainty at any time what the future of the real estate market holds, but we see a market correction coming. And when it happens, there will be some great deals to buy.

Related: How to Build Massive Wealth During a Recession: Master These 5 Principles

Looking Forward

As an investor, you always want to be watching for opportunities to arise. You need to know that even if one of your properties dips in profits, not taking a chance will ultimately hurt a lot more.

Don’t let COVID-19 shake your confidence. There’s little chance you’ll ever regret making the defining choice to become financially free through real estate.

No one gives you confidence; you need to take and own it. Otherwise, you can rely upon the real estate truths from one of the richest men who ever lived, Andrew Carnegie: “93% of all millionaires become so through owning real estate.”

If your goal is to hit that seven-figure mark, those are odds worth betting on.

If you need some quiet time to think it over, regain your confidence, and plan out your strategy, I know of two great luxury quarantine hideaways in Gatlinburg that you can rent for a steal over the next few months.

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How has COVID-19 affected your real estate decisions?

Share your thoughts in the comments below.