The Pandemic of 2020 rages on. And raging perhaps louder than the disease itself is the on-going debate about when and how the economy should open. Protesters are out in multiple metropolitan areas, jobless claims went up another 3 million last week - nearly 35 million now unemployed. Yet the Governor of California this morning announced that the state will remain locked down until there is a vaccine. How about that for a ransom note? Did you know that the vast majority of viruses in existence have no vaccine. A successful vaccine for any virus is the exception rather than the rule. They still don't have a vaccine for HIV, the virus that causes AIDS. They don't really have a vaccine for the flu. They give you a flu shot which is somewhat effective in protecting you from the flu that was prevalent last year in Asia. If it were an effective vaccine, you wouldn't need another one every year. Yes I know it mutates, but that's the problem. Virus vaccines are remarkably difficult. I'm not saying they won't develop one for COVID-19, but I think it may not be wise to hold forty million people hostage until they do.
Those of us that look at the markets, attempting to read the signs, predict and prepare for the future have a difficult job right now as well. We have never seen anything like this. So what should we be doing with our real estate? It's a strange and unpredictable time in the market. Should we buy? Should we Sell? What should we buy? What should we sell? Perhaps we should sit tight? What are the experts saying? You can learn a lot by getting inside the mind of an experienced investor -- someone who has seen the market come and go and knows how to respond. Today we begin a two-part show with two prolific investors on a panel to talk about this. Gordon Catts has been an investor since 1970. He has seen just about everything there is to see in real estate and lived to tell the tale. He's bought just about every type of asset imaginable and he's working on a deal right now that will be amazing, but I'm under a non-disclosure agreement, so we will just have to tell you all about it when he wraps it up. It's big. He is my friend, my mentor, and my go-to guy for perspective on real estate. Chris Larsen is a new friend, recently on this show and the author of the book, "Next-Level Income." His grasp of analysis is keen and his attention to detail is rare. I read his book and was deeply impressed with his grasp of the small details and their impact on the big picture. They joined me recently for a panel discussion for the Flipping America REIA, a national REIA with a local focus. After launching in January we now have twelve local chapters, mostly across the southeast, but if you're interested in leading one, let's talk! Go to bit.ly/talktoroger to schedule an appointment.
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Announcements:
- The Flipping America REIA meets every Wednesday from noon to 2 and Thursday from 7-9. You can join the REIA and learn real estate investing from the comfort of your own home, or get together with a few friends and form a chapter in your area. Learn more at flippingamericareia.com.
- Flipping America App is in the app store. You can listen to the show, read the show notes, and the entire catalog of shows is now available to you. It's a free download and there are no upsells or in-app purchases. Free to download, free to listen. Go ahead and give it a try and drop me a line and let me know what you think.
- FlipCalcs allows you to enter one data set about a property and consider up to six deal possibilities .
- "Real Estate Investing Quick Start" Fifteen lessons to start your real estate investing career. Study from the comfort of your own home. I give you 8 action assignments in lesson 1 and show you how to complete them while holding your feet to the fire over the next 15 lessons. bit.ly/requickstart.
News:
- Wells Fargo and Chase have shut down HELOCs. https://www.housingwire.com/articles/wells-fargo-joins-chase-in-halting-helocs/?utm_medium=email&_hsmi=87301868&_hsenc=p2ANqtz-8ieyJjGGEgtd-kV-KpAGEzrABLcg5YNhA4QUqyFMATa5yWy_ctq2pkxUD4vqU_8EMvAW9-&utm_content=87301868&utm_source=hs_email
- Kylie Jenner pays $15M for an empty lot. https://www.realtor.com/news/celebrity-real-estate/kylie-jenner-pays-15m-for-empty-lot-hidden-hills/
- Redfin and Offerpad are back to ibuying and zillow will be soon. OpenDoor next week. https://www.housingwire.com/articles/redfinnow-resumes-ibuying-and-zillow-offers-isnt-far-behind/
- Speaking of Zillow, they have predicted a dip in home prices in 2020. I'm seeing it the other way. I think we will have a slight rise in prices - around 2% for 2020 as there is still a pent-up demand and a shortage of inventory.
- Evidence of pent-up demand: https://magazine.realtor/daily-news/2020/05/06/cooped-up-unhappy-young-professionals-target-new-homes
- Expect a surge in listings wherever pandemic restrictions are lifted. https://magazine.realtor/daily-news/2020/05/07/homeowners-are-preparing-to-list-after-the-pandemic
- The six BEST months to sell a home https://magazine.realtor/daily-news/2020/05/06/study-reveals-the-best-months-to-sell-a-home (hint: Feb-July, but not in that order)
Questions:
Send your questions to [email protected]
- Toya, Atlanta, GA "With a subject-to can you do what you want with the property sell, rent, etc."
- Armond, Macon, GA "I've heard from some long-time brokers that most banks are wise to the veil of a land trust when doing sub-to, and it's simpler to just disclose the transfer of ownership to the lender upfront when changing/starting the home insurance policy. What do you guys think?
- Anthony, Atlanta, GA "When someone is on a ~30 day foreclosure timeline and has a 2nd lien that you want to short, is it generally feasible to get the short sale done in that short time frame? Normal short sales take months usually if I'm not mistaken. ."
- Cameron, Pittsburgh, PA, "How are you showing your properties right now?"
- Faith, Tampa, FL, "We have a flip in a hot area where young adults buy. My husband and I have been arguing about the exterior. The house is a beige stucco. I wanted to paint it a playful Florida color, but he overruled me. Now he's saying the front door is going to be black because it's basic and neutral. I'm begging you to convince him to let me put a pop of color in there."
Motivational Thoughts for the day "A wise man will make more opportunities than he finds." Francis Bacon
