Act Now or Wait? IF Under Contract - Close, or Back Out?

[Scott Trench]

A lot of investors are reaching out to me right now, often those who are currently under contract on a first or second property. Luckily, almost all of the folks I've talked to are in strong financial positions overall - spend less than they earn, have a reserve, good credit, etc. Go BP!

Their question usually stems around one of the two problems:

1) This was it! This was the moment I'd been preparing for, and it's been a YEAR of self-education. I've listened to tons of podcasts, know my market, and am finally mentally ready to pull the trigger. Should I still continue to submit offers and roll on? 

2) I'm under contract and weeks away from closing! I'm a newbie and I think this is a "good" deal, or in the top X% of investment purchases I could make, and I'm unlikely to get a much better one. This is what my research has told me works well, but it's not WAY better than the next possible deal. Should I back out?

I'm sure that many folks are wondering along the lines of these two questions. Experts of the BP community - what do you have to say on the subject here? Assuming again that the folks asking these questions are in fact well-capitalized, capable of purchasing property. Should they act now, or wait and watch?

[Jennifer Gligoric]

All the investors I've talked to fall into two camps, those who were not stable but trying to gain stability through real estate and those who were stable and wanting to grow.  The ones who are stable are seeing the opportunity in this, both from a foreclosure standpoint in being able to snap up properties and those who realize that everyone needs a home and there will be stimulus and with global warming, heat which scientifically is shown at 86 degrees to inactivate the virus on surfaces, making it much harder to pass.  Already today, Italy just had a 103 year old woman recover with treatment.  If we just chill now this will pass but the opportunities will abound.

Investors who are less economically stable are worried, but I don't think they should be.  Historically, in times of turmoil this has been when many people rose up to make their fortunes.  Thankfully, we have unbelievable technology and the ability for even entertainers to work remotely.  Not being glib, but having helped orgs scale for a decade using totally remote workforces, this is not that big of a deal.  It's a change to the status quo and personally I feel it couldn't come at a better time.  It's better for the planet to have as many people as possible work from home and it's better for orgs to go through this - as many orgs are stuck in dinosaur business models with outdated management styles that should be left in the dust.

I'd point to the overwhelming opportunities people will see.  Just today I spoke to several entrepreneurs, one a boutique hotel sales consultant.  I said "Call every client that booked a meeting and tell them their conference isn't canceled.  Research Online Summit providers, get a quote and then provide that conference virtually but you be the point person & jut sell it.  Marketers have virtual summits all the time that are huge hits, just get the right partners and call everyone with a new plan."  I told a girl annoyed that she had just booked a great gig, she's a folksy guitar player / singer,  to sign up for Patreon, do eVites and then have people pay to watch her perform on video and chat with her fans - guess what - her list responded positively on her Insta and now she can do something, whole venues need to think about this.  Every waiter / waitress can now see about being a delivery driver or helping - it's temporary but really, we can't shut down the economy.  We can use tech to help us.

Let your investors know that now is the time to be bold, be brave and be confident.  They are the ones along with these other people thinking outside the box that will help save the economy from totally tanking.

We're Americans after all.  Being innovative and spitting in the face of adversity, conquering it and managing to do even better is in our DNA and we need to reclaim our individual greatness instead of the negativity that gets poured on us daily from the media.  I'd double down on confidence and do what you can (as I am) to help them make the wisest choice they can so they have the best chance of success and if you can help them avoid a bad deal - then, of course, do it because we're all in this together.