Where are the Opportunities?

Question

Crisis. It's all around us at the moment. It's hard not to think about, right? Turn on the TV and it's there. Turn on your phone and it's there. Turn on your radio... it's still there. But amidst all of this crisis talk, I want to start another conversation:

Where are the opportunities?

If all we are is who we are when hard stuff happens, who are we right now? I want to be someone that makes something of the hard stuff. Lemonade out of lemons!

So, looking at those experienced investors and newbies too, where do y'all think there is opportunity (buy and hold, wholesaling, fix and flip, liens, etc.) right now (I'm asking for myself as much as I am to start the conversation; I want help too)?

What problems are people having right now due to coronavirus? How could you serve them the best in solving that problem for them?

My first thought is that there is definitely going to be people who can't make their mortgage payments. They will either need cash fast or need to sell quickly. How could you best serve them and bring them the most value?

What do you think? Please share you thoughts and ideas. Let's kick this virus and come out better than before!

Jeff C. · Answer

We're too early in the game. The opportunities will start presenting themselves 6-9 months down the line. Right now it isn't a "problem" for most people that they can't pay their mortgages. They're insulated from the consequences and have a reprieve for awhile. There also hasn't been any time for pricing to adjust. A lot of people are still in denial that this is going to significantly effect the real estate market. Enough of them to prevent you from scoring the kind of deal you're looking for.

Jonathan Greene · Answer

I agree with @Jeff Cagle that the real opportunities will be coming in late 2020 and early 2021 after people use up their government deferred leverage and when they do, there will be far more players in the game. So, for newer investors or someone who wants to invest who has a surplus of cash or can wait out the stock market, I would hold now and watch what happens. I think people will be sorry rushing into investments when they think it's a low time because times will get lower for homeowners in that time frame Jeff mentioned.

Jan Jurcisin · Answer

I agree that now is not the time to look for deals to wholesale, fix-flip or hold. addition to it being challenging to view properties, the current financial hardship is being acknowledge by lenders giving borrowers a 90 day graceperiod. In 6 months if borrowers haven't recovered, that will be the time we can offer them help and pick up deals.

Kanwar Sodhi · Answer

@Jonathan Greene Are you still looking for opportunities in NJ? My brother specializes in looking for deals

@John Tucker There's always opportunities to help people in chaos. Perhaps, there may be families looking to liquidate for top dollar OR investors looking to purchase for bottom dollar. I do agree with the other 2 in saying that waiting it out and catching up and have conversations with investors on and off

@Jeff Cagle Agreed

Jonathan Greene · Answer

@John Tucker my personal strategy is wait and watch. I don't have much of a choice in NJ. I have two flips that haven't started and are just sitting there, but they were good buys so time will play out in my favor. I have one waiting to close, which is annoying, but understandable. I am not in a rush to get more properties as I think the deals will all be there in 6 months and then I can pick and choose more carefully.

John Tucker · Answer

@Jonathan Greene @Jeff Cagle

John Tucker · Answer

Jonathan,

Thanks for feedback. When you say “players in the game,” who are you talking about? Do you mean investors jumping on deals or more deals to choose from or both?

What is your personal strategy as we move forward?

John Tucker · Answer

Yeah, that makes sense. I was just looking at pricing trends and, according the graphs, the prices are generally still going up. How are you positioning yourself for when the effects start to show? How would you recommend someone starting out to position themselves (me)?

Where are the Opportunities?

Where are the Opportunities?

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