Real Estate in Covid-19 times - Is now a good time to invest

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Summary – Transcript

Hey, Mike Wolf here. Today, I am back in Calgary. Like most of you, pretty much stuck inside and just having locked downtime here. The questions are definitely coming in. I encourage you, if you have some questions for me to send them my way, and I’d be happy to answerthem. The big thing on everybody’s mind right now, besides obviously, the virus, is the economy and what’s going to happen afterwards. I’m getting a lot of questions about what’s going to happen with real estate.

First of all, Real Estate’s what’s called a lagging indicator. What that means is that it takes a while before anything really affects the real estate market typically. Meaning, the stock market almost right away is going to either go up or go down based on the news of the day. With real estate, it takes quite a while for it to trickle down. Sometimes, it doesn’t make it that far, where it actually does have any effect. What I see happening and a lot of people have very vividly on their minds, what happened 2006/2007 when we had that big recession.

This time it’s going to be a little bit different, in that, first of all, this whole recession is not being caused by the lenders, not by the real estate, it’s by a disease that’s affecting the entire planet, the entire global economy. I don’t think we’regoing to see things quite as big a sell-off as -probably not even close to nearly as big a sell-off -as we did back in those years. There’s also some really big differences.Number one, the government is stepping in and telling the banks that they can’tforeclose on anybody for six months. I’m guessing that number’s going to change the longer this disease goes on, the further out into the future that we’re going to have that moratorium on foreclosures. Which means that people won’t be as desperate to unload their properties as they were back during the recession when everything was free falling and people were afraid if I don’t sell now, my home will be worthless.In any case, it’s a much different type of event. It’s a much different outcome. However, because there’s a moratorium on foreclosures, guess what’s going to happen, once that moratorium ends? People that know how to do–My students who go to the tax deed auctions and know how to do the foreclosure auctions. If you know how to do that. If you basically say, “Hey, you can’t have any foreclosures for six months, what’s going to happen when that six months ends?” Obviously, there’s going to be a lot of foreclosures coming down the pipeline.

Also, a lot of people who make their living as most of us do, they get there, they’re waiting for their paychecks. They’re not going to be in a position to be your competition at the auction if you have some money to play with. If you don’t have money to play with, there are ways to go and raise some money. You don’t necessarily have to use your own money to go to these auctions. If you haven’t already taken my training, I’m not obviously doing any trainings during this downtime.Once this all ends, I’m planning on doing another training where I teach people the different ways to monetize what’s happening after COVID-19. Basically, different strategies for how you can make money in today’s market and create win-wins, how you can help other people at the same time. I never teach people how to take advantage of somebody when they’re down. I’m going to teach you different ways where you could help the previous homeowners either stay as homeowners or help them get into something more affordable based on their new circumstances. Whatever it is, it’s always got to be win-win.

That’s one of the things that’s happening. Obviously, there’s a ton of other opportunities, whenever something like this happens, and there’s lots of people being furloughed right now from their jobs, there’s going to be a lot of people that even though they’re not desperate to unload their home, they’re not necessarily going to give it away. They would rather have maybe a little bit less money but have it sold quicker because they just want to have some cash. Some of these people are going to go from owning to renting and a great opportunity in a number of ways.One, obviously, if you’re a trained real estate investor, you can help these people not only with getting out of their property as quickly as possible but potentially maybe you could put them into a rental property that you own, if you have one or in a rent-to-own situation, help them get back into homeownership. There’s going to be a lot of money in helping people do that.

In Atlanta, where I sell my turnkey properties and I know many of you watching this have some properties with me. That’s going to be a great opportunity. There’s going to be a lot of people looking for rent to own because most people who go from homeownership to renting, don’t really want to be renters forever, they want to getback into owning their own home. Great opportunity to help these people. We’re going to be doing that in Atlanta, we’re going to continue to do that, and more opportunities there.

Also, if you’re somebody who likes to flip homes, if you’re somebody who isa wholesaler, there’s going to be so much opportunity coming down the pipeline. A lot of people are seeing this as, I hear a lot of doom and gloom, I see a lot of opportunity. I know a lot of you are saying, “Well, I don’t know how to flip a home or I don’t know how to wholesale.” Well, guess what, I’m going to be teaching that in my upcoming class. Like I said, it’s going to be probably around 60 days after it’s safe to fly and have people in groups again. I’m going to get people trained so by the time the auctions start happening, you’ll be trained and ready to go, and you will take advantage of it

Bottom line, if you’re a real estate investor, there’s some really good times coming up ahead. If you have buy and hold properties, we’re going to probably see a couple of months where rent is probably going to be a little bit thin, less than normal, because some of these people can’t afford to pay their rent. You need to negotiate with your tenants. I’m actually going to make a separate video on what we do with tenants that can’t afford to pay rent. We’re obviously not kicking people out on the street in the middle of a pandemic, that would be horrible. We’re also not giving them a free ride where they’re going to stay there forever and never pay rent again, that’s not going to happen either

I’m going to explain in my next video exactly how you deal with that. If you’re working with my team, my team is doing this for you. You don’t even need to worry about this. It’s all going to be handled for you. Anyway, I hope you found this helpful. If you did, please like it, share it with anybody who might benefit from this. Subscribe to my YouTube channel so you get all my new videos as soon as they come out. Whatever you do, please stay safe and be careful out there. I can’t wait to see you all in person once all this goes away. Take care. I will talk soon.