How the Coronavirus Impacts Real Estate Investing for Women

Real estate investors are especially concerned with the impact of COVID-19 on the economy. Women real estate investors often depend on their income to care for themselves and their family, making economic changes even more stressful. During this uncertain time, look for ways to maintain and grow your real estate investing business with smart investment strategies.

While the impacts of coronavirus on our world and economy continue to shift, we can use our understanding of past financial downturns to consider how to react now.

Past Recent Recessions Offer Insight

The most recent recession in 2008 came from an economic downturn based on financial issues, specifically in the mortgage lending industry. Therefore, the impact on real estate was more negative. In contrast, this current crisis wasn’t based in financial issues. Instead, the real estate market thrived in the first quarter of 2020.

In 2008, the real estate market experienced a massive asset repricing. Today’s downturn should not mean major price shifts in the long-term.

Comparatively, the 2001 recession was the result of the 9/11 terrorist attacks. Like today, unexpected events pushed the country into the recession. At that time, the real estate market remained strong. In fact, real estate prices went up between 2001 and 2002 by 4.8%.

Current predictions do not indicate the coronavirus economic impact will last long term. Many financial experts believe that once the pandemic is over the economy will recover quickly.

Coronavirus Impact on the Real Estate Market

In recent years, sellers have dictated real estate prices. The market boomed and prices soared. Most property owners didn’t need to negotiate on price. This made achieving a good price to make the investment profitable more difficult. Now real estate investors have an opportunity to benefit from motivated sellers.

During this unexpected economic downturn unemployment rates have skyrocketed. People are scared and face financial difficulty. With people unable to pay their mortgages, they need to sell their properties. Real estate investors offer a solution for these properties owners to get cash fast.

Property owners are now willing to negotiate a more reasonable asking price. Now is the time to take your business to the next level.

How COVID-19 Changes the Top Real Estate Investing Strategies

Wholesaling – With more motivated sellers, real estate investors can step in as a wholesaler to help locate buyers through real estate wholesaling.

Fix and Flip – Historically low interest rates mean mortgage payments are currently lower than many monthly rental rates for homes. Houses in the price range have increased demand. Purchase a fix and flip to rehab to meet the increase in demand at this price range.

Buy and Hold – When the economy struggles, demand for rental properties increase. Vacancy rates were already at an all-time low, but as more people must sell their homes and rent, demand should continue to increase.

Use your knowledge as a real estate investor to meet the market demand for rental houses or affordable homes. You solve a need for families while also protecting your financial future.

Virtual Real Estate Offers Viable Solutions

Life has changed for many women during this time, including managing online learning for children while trying to work from home. Also, some local governments have limited in-person contact, like real estate showings. However, a virtual real estate investing business model offers an alternative to keep your business on track.

Virtual real estate investment was already growing in popularity. If you haven’t already used virtual real estate tools and techniques, it’s not too late to start. In fact, people are more willing than ever to connect online instead of in person.

Not only is virtual investing great for our current situation, it can expand your business to other geographic locations. Consider adding virtual real estate investing as an ongoing part of your investment strategy.

Manage Your Real Estate Investing Business During the Coronavirus Pandemic

Remember to stay calm and make smart decisions. We are dealing with a temporary crisis, and you can weather this storm. With flexible investment strategies, you can not only sustain your business but also grow your portfolio.

Don’t let fear keep you from the current opportunities. Consider how you can adjust your business to thrive during uncertain times.

Prioritize your health and safety by practicing social distancing and following local regulations and restrictions. But, also use this time to secure your real estate investing business and your future.