Has COVID-19 tanked your investment strategies?
Contractor · Cornelius, NC · Member since 2011 · 123 posts · 89 votes
Has COVID-19 tanked your investment strategies?
2 Replies
- 5yJustin R.Pro MemberRental Property Investor · San Anselmo · Member since 2015 · 659 posts · 600 votes
My strategy is steadfast and has not been affected. I Invest in a area of that has sustained population growth, a multi-faceted economy, and creates the potential to meet my financial metrics.
My tactics have changed slightly, mostly because I want to steer clear of the extremely tenant friendly states during the covid crisis. I will personally not raise rent during the covid period, and I will/have helped tenants in need. I do not need my state to give my tenants a free pass on paying for rent, let me make those decisions.
- 5yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votesIn my mind you have the person who is in the business and has on going projects.
So for a company like us we had multiple projects going prior to the Covid 19 so you have no choice but to keep
working them and of course things could have gone a number of ways.. For us Credit could have frozen IE no more spec loans or construction loans.. ( that did not happen with our banks although they got pretty cautious and very picky who they would lend to).. HML that relied on wall st for their LOC's got shut down for a month or so.. I remember reading about that affecting investors who had deals in their pipelines.. then the HML Jacked their rates up VERY high .. But we are seeing those come back down now.
So as it turns out SFR new construction is one of the better places to be from all aspects of the economy rates at historic lows tons of new buyers entering the market.. 90% of folks still employeed.. So all the suppliers and subs are doing well Home Depot record years etc.
the other side of the coin is the mom and pop rental investors IE just starting or trying to grow their portfolio of cash flow assets.. right now from what I see there is zero slow down.. I suspect the only issue will be those 10% who are not working where do they live and how do they pay mortgages or rent ? However it does appear jobs are coming back.
Although like everyone I read the articles where bigger companies are letting people work from home and I have personally seen quite a few offices buildings that are darn near empty.. So there has to be some stress in the CMBS realm and those assets.. However a lot of that financing is very complicated that it does not really flow down to the BP level investors at least not 99% of them..
Like Everyone I am just hoping that this vaccine that is on its way gets here and we can start to build back.
we need:
Airlines to be healthy
Travel industry to be healthy so folks can travel and take vacations.
Restaurant business and all those that support them.. from farmers to vintners pots and pans and of course the staff.
So as it relates to real estate available credit and super low rates have kept it from crashing on the SFR side and as long as that remains I personally dont see some huge event like 08 to 2011 in the SFR space..
My wife got 7 offers on one of her listings first day on the market went over last night took the strongest and it was for 30k over ask.. here in Oregon.. we pre sold 11 homes so far in 3 months in our development without a model home JUST DIRT..
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