All Forum Posts by: Franky Aikens

No need to over complicate things. You can make a good deal in any market and any economic climate. Macro perspectives in real estate are good for identifying trends but for most investors on this site, they are participating on a micro and level, one deal at a time.  So even in a down trend, you can still make a good deal that works for your investment goals. 

@James Camp

I have a GC recommendation I can send your way. His currently doing a full renovation on my property in East Passyunk. He’s great and so are the subs her works with.

Send me a note if you’re interested in knowing more about them.

I'm working with a great contractor on my primary residence in East Passyunk. Its a full gut renovation. They passed my wife's sniff test whose a high end residential interior designer in New York. Happy to share their info.  Just PM me.

@Eric Teran best response in the thread! Live your best life whenever the opportunity comes but do it smart.

Invest but also expand you world view at the same time. If you’re smart and focused, there’s a good chance wealth is a sure thing regardless.

I would look into products and services that support remote working.  Although people will be getting outdoors after this is over, they may not be going back to an office as there may be a strong use-case for the financial and production benefits of a remote workforce. More companies and employees will likely be open to it.

Of course, this is a broad category but I truly think there will be opportunities there.  Whether is around professional good and services or personal goods and services that are more attractive to those who now work remotely. 

Great opening analogy. I'm going to have to borrow that one.

@Jaysen Medhurst

Thanks for sharing your thoughts.

Re: liquidity comment - I meant as compared to the investment vehicles I real estate isn’t as easy to liquidate.

One of the greatest cons of real estate is the lack of liquidity. In this time of crisis, liquidity is what many households and businesses need right now. 

In an attempt to supercharge real estate deal timelines and liquidity, The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corp., and the Office of the Comptroller of the Currency have announced changes that will allow commercial and residential mortgage closings to happen WITHOUT an appraisal. Basically circumventing the bottleneck appraisal process that usually holds up deals. 

Appraisal delays are even more pronounced during the COVID pandemic. The new rule allows for the appraisal to be done up to 120 days after the deal has closed.

The rule only applies to banks that keep the loans in their book and are under the oversight of Fed, FDIC, and OCC.

What are you thoughts on the pros and cons of this new rule?

reference: https://www.housingwire.com/articles/banks-will-soon-be-able-to-postpone-some-appraisals-until-120-days-after-a-mortgage-closes/

There's a great deal in every market condition. You might have to filter the opportunities with greater scrutiny depending on your situation, though. History has shown that in times of financial crises, a large distribution of wealth usually follows, flowing to those who are prepared for it and or can create beneficial terms for the times.

I see your point. I do think the means test needs to be done by you as the landlord. Candid conversations with each of your tenants about what they are able to pay to would be necessary. It sounds like you have quality tenants that have abundant savings so they can continue to pay their bills should unexpected events impact their income.