How To Pause Your REI Journey During Coronavirus

Question

Everyone has an opinion on what is happening with the real estate market, but we literally have no idea how the coronavirus will play out over the next three months. For seasoned investors, it does seem like deals will be coming more frequently, especially if you have been in a continuous direct mail cycle for six months or more. Those of us with that consistency are likely to be getting more calls as panic ensues and people lose their jobs, but that doesn't mean that now is the best time to pounce on distressed sellers and so-called deals. The fact that people and properties could be carrying the virus is more tantamount now, in my opinion.

I am moving forward on my deals in the works, but I am taking a pause before beginning my next two renovation projects which have already closed. I can't wait forever, but I see a lot of pressure out there in REI to start and now it's ten-fold as people look to REI to save them from a 9-to-5 that may also be in jeopardy. Before stress-buying or rushing a renovation to completion, maybe now is the best time to just take a short break. Nurture your leads over the phone. Mastermind over Zoom with other investors. But don't forget how serious this is to a business that is built on going into stranger's homes. Take some more time to learn and network. The deals will still be there and deals can still be made, just not in response to the panic.

Jonathan Greene · Answer

My two flip properties already closed so I own them, but am still pausing just a bit before I start the renovations. They are both on a LOC so I can't just sit around and wait, but I am waiting on a large closing on another flip and then could pay them off and hold if need be for a while. I don't think anyone really knows what to do, but I do know that any deal we back out of, there will be someone there to grab it. Tough choices to be made going forward.

Larry Turowski · Answer

Nobody responding?  There is just too much uncertainty right now.  Business hates uncertainty.  And I do too.  I had a flip that I'll be backing out of (or at least postponing) because it is a major project.

I've got a bunch of rentals and we'll see if people maybe in April.  Whether they pay will inform me whether to move forward on other deals or circle the wagons.