Preparing for COVID-19

COVID-19 seems to be causing panic around the United States.  In Ohio specifically, stores are running out of hand soap, hand sanitizer, disinfecting wipes, and toilet paper.  Also, in Ohio, schools are shut down and sport events are limiting the number of attendees.  Some companies are even sending employees home to work instead of being in the office.  Schools and companies are taking steps to prepare themselves for this coronavirus.  What is happening in your area?

As a real estate investor, how are you preparing your company for COVID-19?  Of course, the top steps to follow to avoid this coronavirus include washing your hands and staying away from others when feeling sick. However, as a business owner what about making sure your employees remain healthy and your real estate investment business stays successful.  Do you believe it is important to stock up on supplies?  What happens if your employees take time off?  How will you get your rehab completed in a timely manner to earn the highest ROI?  I have heard from many parents that they are concerned about what to do if daycares are shut down.  Many parents are unable to take time off work and/or take their children with them to their place of employment.  Owning your own business, how would you handle your children not being able to attend daycare?

There are some many factors to consider when preparing for something that is causing panic around the world.  It never hurts to prepare yourself and your real estate investment business to the possibilities that could take place due to COVID-19.  It may be important to take the next few days to set a plan in place to answer those what ifs surrounding this COVID-19.

Even though this article by the National Association of Realtors is directed towards realtors, there are many ideas available that could be beneficial to you too. – https://www.nar.realtor/coronavirus-a-guide-for-realtors

Real Estate and the Coronavirus

The coronavirus has been a news topic in the United States for a few months now.  This recent coronavirus is a new type compared to the virus from the 1960s.  This new strand of the coronavirus was first noted in China in December 2019.

Lately, the news has been reporting that the coronavirus is disrupting different industries around the United States, not just businesses in China.  The Fox Business website published an article reporting how the coronavirus is affecting luxury real estate markets in New York and California, as China has been an important source for the luxury real estate market.  The continuation of this virus could mean a bigger decline in sales. The current ban on any foreign nationals who visited China in the past two weeks in addition to canceled flights to the United States from China will keep impacting the real estate market.

Read the article here: https://www.foxbusiness.com/real-estate/coronavirus-new-york-california-luxury-real-estate

Realtor.com reported that mortgage interest rates have dropped due to the coronavirus.  With this drop, many are refinancing their mortgage loans causing applications to be the highest in seven years.

Will the coronavirus affect your real estate investments?

January Becoming Busy Real Estate Month

Spring has been known as the popular season for real estate shopping, but it seems that it is changing.  Over the past few years, more and more people are starting their housing search earlier and earlier.  The housing shortage is making the real estate market more competitive and causing homebuyers to start looking earlier than spring. According to Realtor.com, U.S. housing inventory is expected to be at a record low in 2020.

According to Realtor.com, January is starting to become a big month for real estate sales.  It is reported that in 2019, “January was the busiest month on the site in 20 of the largest 100 metropolitan markets.”  This number of views is up from January 2019, and is expected to increase in January 2021.

Read the full article here: https://www.realtor.com/research/january-housing-market-new-april/

Which month in 2019 was the most successful for you?

Planning for the Unexpected

As real estate investors, rehabbing your investment property could be as simple as updating the fixtures to as demanding as drywalling and replacing flooring. When planning the list of improvements for the property, do you plan for the unexpected? In unexpected situations, a real estate investor needs to be prepared for additional costs and time.

At ReCasa Financial Group, we encourage all our borrowers to have cash reserves available while rehabbing for any unexpected situations and any budget overages. With liquid reserves, borrowers are able to access funds immediately without having to increase the loan amount. This allows for the rehab project to continue without delay and saves the borrower money in the long run.

What are your experiences with unexpected budget shortfalls when it comes to rehab investing?

Project Destined

Many professionals are passionate about their career, and hope that younger generations will follow in their professional footsteps.  With your real estate knowledge and experience, you are able to help mold the minds of others.  Two real estate experts did just that.  Cedric Bobo and Fred Greene are the co-founders of Project Destined.

Project Destined is 501(c)3 non-profit that administers a real estate based education program focused on empowering underserved communities through training in financial literacy, total health and leadership development.” Through this non-profit, inner-city students experience real world real estate investments within their own community. Currently, this program is only offered in certain areas including Memphis, Miami and New York City.

The program teaches real estate and financing topics to the students through an online platform.  Then they form teams where each team concentrates on one real estate property.  These teams create an investor pitch which they present to a panel of real estate experts.  Not only are these students gaining real estate knowledge, experience and connections, but the winning team has the opportunity to earn a cash scholarship up to $5,000.  According to CNBC, “Some of the kids from this program have gone on to get internships and even jobs in the real estate sector.”

Does your community offer anything similar to Project Destined?  The Project Destined website allows you to vote for their next city where they will expand this non-profit.