1. Mail or call old leads
Real estate investors always talk about how much money can be made with old leads. Right now, you may be struggling to get new leads. So looks like it's the perfect time to go back and follow up with all of your potential sellers!
New foreclosure lists and probate filings have stopped, since courts are closed. And new listings on the MLS have slowed to a trickle.
The good news is those who have already signaled they may want to sell are now re-considering how they want to do it. People who may have called a realtor before are now choosing to call investors, since realtors are not doing showings and most retail buyers are not willing to tour properties.
2. Track price reductions and contact those listings
With few buyers out looking, some sellers who are listed on the market are slashing prices. In particular, I’ve seen some bank-owned properties lower their prices at a faster rate than what I've witnessed in our market before. Banks rely on a formula which prompts them to make discounts after a period of inactivity, but it seems like some may have accelerated that given the crisis.
3. Position yourself to buy
Who knows if housing prices will drop considerably due to the economic impact of coronavirus, but if prices do fall dramatically - you’re going to want to jump in. Get prepared by aggressively saving as much cash as possible and look for opportunities to get more.
For example, are you eligible for a HELOC or a home equity line of credit? Could your business be eligible for a line of credit? You only owe this money back if you spend it, so there’s really no harm in getting a line set up.
4. Reach out to new hard money lenders
Some hard money lenders we’ve worked with in the past say they are currently not doing any new business AKA they’re not writing loans! One we have worked with in the past is our go-to right now for any new properties we put under contract. If they stop lending, who will we use? It’s important to interview and research new lenders now to be prepared if you do get an offer accepted.
5. Reach out to other investors.
Other investors could be the partners you need to close on a property if lenders stop lending. But it’s also good to stay in touch. Ask them about what they are experiencing right now? Are they faced with closures at the local building department? Where are building supplies sold out or available amid factory shut downs?
What are you doing to push your investing goals forward right now?
Would love to hear your ideas! Maybe you now have more time on your hands. What a perfect opportunity to learn, connect and make your real estate investing goals happen.
Feel free to reach me in the comments section below or find us on Facebook and Instagram to share your experiences, progress or questions!
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