Head of Real Estate Investing at BiggerPockets · Seattle, WA · Member since 2015 · 355 posts · 829 votes
Hey everyone -- we're trying to get a sense of what the BP community plans to do in the coming months, given the impact of coronavirus and the related economic ramifications. Could you please take 2 minutes to fill out this survey? We want to make sure we're meeting the needs of real estate investors in this changing environment, and hearing from you will help us a ton.
a 4plex in the East Valley of the PHX MSA fell through contract a couple of days ago and the agent wanted me to submit an offer. I gave him the price and terms and he sent me the docs to sign but I had to decline given the uncertainty and really calculating the risks involved. I feel like I should be focusing on operating the 8 units I have efficiently by keeping my current tenants and protecting my capital and being patient
I would have been using a hard money lender (80% LTV, 10%, 1yr loan term) to acquire and then begin renovations and raising rents to market. and then do a VA cashout refinance or FHA and move into one of the units. so my risk is if the property will not hold its value or go down and I cant refinance and/or if my new tennat base will be able to afford the new rents ($950).
My gut is telling me to stay liquid and see how this plays out but there's this FOMO (fear of missing out) side that thinks this will blow over and I won't have a deal. I want another 4plex this year.
how would you guys feel about getting a property under contract right now? to pause and wait or to take action and buy?
Thanks and done ! Anxious to know the results too. I was just starting to find deals and make offers ,until the virus invaded our lives . So i have decided to wait,watch, and see what other investors are doing / thinking .
I pulled out of a deal during the last day of due diligence about 2 weeks ago. No one could predict what the market was going to do, and it was only an average deal. Now I'm just sitting on a pile of money waiting to see if housing prices drop. If this goes even close to a 2008 scenario I should easily be able to buy up several properties cash and quit the rat race.
At the moment, all of my competitors have shut their doors because institutionally funded private money pulled out. We are at 3x the amount of leads than usual due to this. We continue to operate and we were built for this kind of situation as our money is truly private.
This has not effected me at all. I recently sold my flip above asking price in less than 10 hours. I'll be buying my next flip today to get started on. Before this Corona virus there was a housing shortage, and after this craziness has calmed there will still be that need for housing and most likely even more of a demand than before. Only if this "stay-at-home-order" last longer than a month will we see a market crash. I could be wrong but I doubt that the government will try to fix one problem just to create a much larger one. I am continuing to invest in flips as well as rentals if all the numbers make sense. Come Julyish i believe that the real estate market will be booming like we have never seen before.
Done, I know personally I'm looking for as much information as I can find on the market. It's okay that it's changing rapidly. I need to keep my battle plan up to date. :)
@Ian Walsh@Michael H.@Jay Hawlader I understand the market is unstable however some of us are very busy Thank God. We have tighten our belts with a bit more doable requirement but strongly lending and moving forward. If I may assist please reach out.
I am battening down the hatches. Going to wait two or three months, then I will look to purchase a unit. The housing market is bound to follow the market correction, if delayed.
