Is Anyone doing deals right now?

Question

Good morning all,

The title of this post is pretty self explanatory, however my question lies a bit deeper than that. With a pandemic, are you able to still find Contractors, Lawyers, and Real Estate Agents in your area to continue work?

I am doing everything else possible (running analysis, calling property managers, reading, and general research) to close on my second property. I personally have no problem doing Real Estate deals during all of this, however, if I can't get the property into a rehab, or even close on it, am I just left waiting?

Thank you.

Ryan Martin · Answer

Account Closed I am planning a BRRRR so im not all that worried because its not like im trying to get it back on the market. I wasn't sure what the state of people working was. Its good to know that the people who make the deals go through are still out their working. thank you!!

@Spiro Klonizakis my specific concern is that the stores (such as Home Depot, Lowes, Rona) wouldn't be open or giving business due to all of this. It is good to know that if contractors are still working that I must assume the materials they need to complete jobs are still avaliable! thank you!!

Are either of you seeing this right now as a buying opportunity? Or due you believe that is still yet to come?. I think that if this stays this way people will be willing to accept much lower asking prices or at least be willing to negotiate more (due to their low income and other financial burdens). Any other outside the box opportunities that this will cause?

Again, thank you very much for your thoughts :)

Account Closed · Answer

@Ryan Martin  what are you planning on doing with the property? Is it a flip, buy and hold, something else?   The contractors that I know are still working, with some delays in getting materials and restrictions on how many people can be at a site.  My PM is still filling vacancies as they come in, and realtors are in need of income. Lawyers are still working, and documents can be signed remotely.

I personally feel that we are in a holding pattern as the market and economy await the changes to come.  Our federal government released virus projections today that imply we are in this for a few more months at the least. I believe  this will eventually drive prices down for many RE asset classes, so I am getting ready to act when the timing is right.

Adama Toh · Answer

hello!

if this crisis were to stop within one month or two, I really wonder how long  its consquences will  prevail ?

Spiro Klonizakis · Answer

@Ryan Martin

Hey Ryan.  I’m still working with clients and most of my contractors or contractors I know are working.   A good chunk won’t work with others / won’t work at all.

Definitely slowed down, but I still see movement here.

What’s your specific concern ?

You’ve put an offer in and don’t think it will go though ?

Joseph Cacciapaglia · Answer

In my market, agents, lawyers, contractors, etc. are all still working. Many are working from home, or with limited crews. We're doing a lot more video tours for our brokerage business, and most of our management team is working from home. Our maintenance team is going a little slower, to take more precautions, but work is still getting done. Last week our market saw about a 20% drop off in closings from the year prior. That's not too bad, considering the circumstances.