Due to the crisis now upon us, as described below, unlike any other time in recent history, people who know a few simple strategies can make huge fortunes in real estate even if you have no cash or credit available and know nothing about real estate. Real estate investing is one of the best ways of putting money to work for maximum profits with little or no risk and is easy to learn (see "The Simple Man's Guide to Real Estate"). There is a reason why it always features prominently in the portfolios of billionaires and other sophisticated investors - it offers relative stability and attractive returns.
That said, 2020-21 is unlike any other years in recent history, unique in the circumstances surrounding real estate. The pandemic has changed much in both traditional investments and even business, and real estate is no exception. So, exactly how has the real estate landscape changed, and what is the best strategy for profits? That depends on whether you are buying a home for your family, rental properties, rehabs or real estate to flip for quick profits. Here are two situations that the COVID-19 crisis has created, followed by one of the most effective strategy for taking advantage (there are 21 other methods, depending on your goal):
MASS MIGRATION:
If you get your news from outlets other than mainstream media like MSNBC, HuffPo, CNN and Washington Post, you are probably keenly aware of the civil unrest - riots, looting, burning and yes, even murders in major cities. And while that may quell for a time after the election, that quiet will only be temporary regardless of who wins. By next spring/summer you can expect the disquiet to escalate. Couple that with draconian lock-downs in many areas and the result is mass migration out of those troubled areas. And that has its own result - demand for real estate in suburban and rural areas is skyrocketing - and with it, prices. This creates mega-opportunity for both investors and those in suburban areas looking to cash in and move up to something better - even newbies and people without available cash or credit, as I will point out in a moment.
OFFICE SPACE:
The pandemic has created a second set of circumstances that will have a tremendous effect on real estate. Because of virus contagion, many businesses have shifted all or much of their business online, to work-at-home models utilizing software like Zoom to hold virtual meetings and conferences, and using Doc-U-Sign for signing important documents virtually. Many businesses have indicated that even after the crisis passes they may very well continue that arrangement – both for convenience and cost issues.
As so many will be working remotely, the focus for those workers will be on securing suitable residential property with home office space, rather than commercial office space, again creating high demand and higher prices. On the flip side, as some businesses reduce their workforce of those who work in the office, the select few who remain, usually top staff, may move to more prestigious (and smaller) locations, so prices of the "most prime" office space are likely to rise due to increased demand.
And for all those less desirable office buildings? The prices will likely provide bargains to investors who think outside the box, and dream up ideas on how to re-purpose them for other uses, like incubators for emerging businesses. If you already hold some of those properties you may want to consider unloading them before values drop.
Based on these changes in the preferences of buyers and investors on different types of properties and the locations, there is likely to be a shake-up in the valuation of many property types - some will increase, others will decrease. Just something to keep in mind if you currently hold some property or if you intend to make purchases soon.
THE BEST STRATEGY IN THESE CASES:
Whereas these circumstances will cause rapid changes and may not last long, you want to choose a strategy that:
- can be executed quickly
- can be executed with little or no cash or credit, so you can pursue several, simultaneously
- is so simple a child could do it (with the right know-how)
And that strategy is ASSIGNING, more commonly referred to as "wholesaling". Assignments can often be completed in just a couple of weeks, and sometimes faster than that, since there is no need to qualify for a mortgage or hold a closing. Assigning is as simple as getting a property under contract, then selling that contract to an end buyer and collect an assignment fee. I have seen assignment fees ranging from a few thousand dollars up to over $30,000. In this climate a property valued today at, say, $200,000 could easily increase in value by as much as $20-30,000 quickly, with buyers coming out of the woodwork to buy up those contracts due to limited supply and nearly unlimited demand. This is exactly what occurs in "bidding wars" as several buyers compete for each property.
Even better - you do not have to get a property under contract with a purchase agreement. The exact same method can be used with a simple option. The advantages of an option are a) you need not be concerned about being locked in to buy the property if you cannot assign the contract, b) you don't need to put up much cash - all that is legally required is one dollar, and c) there is no need to undergo a credit check. This simplifies everything.
Of course, even though assigning is extremely simple, it's all in the know-how - the details - and the specific contracts that allow assigning while not locking you in (just in case you cannot find a buyer) while assuring you are always acting within state and federal law. There is a right way, and many wrong ways. The right way is found among the 24 real estate investing methods detailed in "The Simple Man's Guide to Real Estate", all laid out, step-by-step, and includes software to create necessary contracts and, perhaps most important, free, unlimited mentoring by professional investors. It is the only course that provides that essential ingredient.
The above scenarios are best for making profits quickly, without the need for cash or credit. For others, such as home buyers, rehabbers or investors looking for passive income, "The Simple Man's Guide to Real Estate" covers, in detail, all 24 methods of real estate investing.
Make no mistake - if you have ever considered getting into real estate, or if you simply want to expand your options, the time to act is NOW! This opportunity will not last forever.
Check it out - you have nothing to lose, and everything to gain.
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