If you are scared, get a dog....(COVID-19 Investing)

[Shawn Ackerman]

If you were afraid to jump into real estate Pre-Covid-19, here is your out!!! LOL. You can now continue to analyze, over analyze and think and rethink your start in real estate. And after all, you can blame your hesitance on the COVID-19.  Your welcome!

 As someone who is still buying(perhaps more now than pre-covid), I'm here to tell you that 1. This virus will not last forever and 2. people will continue to need a place to live(rental).

With that said, what I've been doing with properties that I am picking up during the pandemic, is running my numbers much tighter(increasing vacancy, repairs and cap ex expense in my analysis) and factoring in 12 months of fixed property expense into my offers.  I've had two sellers accept my "low"offers without much back and forth.  I attribute their willingness to sell at a 40% discount to their fear of what is happening with the virus.

Many will say, "why buy when you can't collect rent now?" 

https://evers.wi.gov/Documents/COVID19/EO15BanonEvictionsandForeclosures.pdf

I truly believe "The time to make money is when there is blood in the street."

https://www.forbes.com/2009/02/23/contrarian-markets-boeing-personal-finance_investopedia.html#11f596f3b59a

My last two acquisitions were at 60% of appraised value, all in, with rent increase value add baked into them.  My cash is losing value each day it sits in my account.

When it is all said and done, I am not urging anyone to do anything silly like buy a rental property at market value during the crisis.  I am saying continue to run your numbers but do it more conservatively.  COVID-19 should not be your sole excuse not to invest.

Here are some strategies to consider during this time.

1. Seller Financing -  

https://www.investopedia.com/terms/s/seller-financing.asp


2. Lease Option - 

https://www.investopedia.com/terms/l/lease-option.asp



3. Transnational Funding - 

https://reww.com/transactional-funding/

All The best.  Always remember to persist and you will WIN!!!!!! Rant Over!