Hello BP Investors,
First, Hope every one is doing good and staying safe and following social distancing and all CDC guidelines.
While we are going through this worldwide COVID-19 pandemic attack, lots of things going through in your mind. There is total information overload about the pandemic all over the world. There are good and bad info all over internet and whatsapp. I am sure you are getting to the point of saturation already 2 weeks in the lock down.
Current state and Future Expection
Let me share points from my current state only. As an Investor who owns around 10 rentals and managing 40 doors as property manager and as well doing new construction and rental make ready projects. There is usually lot goes on every day but what's happening now.
As Broker, we do see request for showings for our rents. We are not showing any properties actively and following social distancing. I will schedule showing to the tenants if they are willing to share their ID and providing access to the property. As per property sales and listing goes, it has slowed down drastically because Corona virus is in everyone's mind and they cannot think further except few who had plans which they cannot avoid. We did slow down on our flip projects and nothing currently going on.
As Property manager, I been in communication with my property owners and trying to work out plan for their tenants and shared BP Brandon's video to them to think about it. We haven't communicated to the tenants yet and hope to do so soon. We are going to follow the same strategy has Brandon suggested to stress that we empathize with you if you are going through tough times and help to get through together if you need help. Luckily, none of our tenants are affected so far and we hope it stays that way. We slowed down on our maintenance repairs and trying to avoid anything non-emergency.
Our construction project has slowed down but we are progressing slowly with caution at this point and low availability of labor and materials. We still hope to keep the schedule and complete but it might depends on the future lock down in our city and county. In regard to rehab projects, I am lucky to have my guy working with me and get that moving. I have currently 1 commercial and 3 make ready projects which underway and hope to complete them by next week. We are trying to avoid personal meetings but he is working away and getting them completed and sending me pictures like as usual.
That's my current state but Houston Real Estate has slow down a lot in general even thought real estate is listed as essential service. We do plan to have virtual closing on property on the works. But if this lock down prolongs, it might have huge impact to the Houston Job market which might have big shift in the real estate industry for atleast 2-3 years. It already going to have impact with low oil price but how much damage is going to depends on how long lock down. As I do still get good OFF Market properties but all my investors want to hold off. My point, why not? They are like, stock market crashed and don't know what' going to happen to economy so why jump in right now. I was like, if you don't want to jump in now, when will you jump in after economy gets going and better... That's not investor mindset. Think about it. During 2008 recession, many of my friends stayed outside and didn't want to risk until 2010 when the market already started going up trend. You have to think like contrarian not like every other self directed investor.
I know I am talking about real estate investing during this time of overwhelming mental pressure by virus. While we are humans and trying to help community and family at this bad times, we also have to keep our mental state healthy to get through it. What else we can talk about and relax our mind. We are already saturated with so much info and it's tough to concentrate. I am trying my best to concentrate and focus on my work and business as much possible by following standard routine and optimistic view. For me, even though social distancing has reduced my movement, I still continue to be active and work on deals which helps me to avoid all negative thoughts around. I encourage you should do the same..
As they say, every worst situation provides big opportunities... While we are trying to follow social distancing and avoid spreading virus, we can still focus on our future and plan for it..
Share your thoughts.
