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, the current economic situation 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. On top of that, inflation is running rampant, and the Fed raising interest rates. So, exactly how has the real estate landscape changed, and what is the best strategy for profits? Bear in mind - high inflation coupled with high interest rate creates a BUYERS market - sellers have a hard time selling under those conditions. A savvy investor can make some great deals in that climate. How to turn this to your advantage 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 strategies 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 as crime is increasing exponentially, particularly in cities that are soft on crime. Couple that with the homeless population and illegal immigrants creating unsanitary, crime-ridden streets 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, while prices in those cities cave. 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.
Work from Home is Here to Stay
The ability of many workers to telecommute at least a few days a week has been happening for some time. The COVID-19 pandemic accelerated the trend and facilitated a more robust infrastructure to support remote workers. Zoom meetings are now common and more companies are comfortable with the technology, as an example.
While about 24% of workers telecommuted in 2019 according to the Bureau of Labor Statistics, that number is clearly a lot higher today and will likely remain well above that number in years to come even once the need to social distance is in the rear-view mirror. Downtown office cores will be less of a draw, as will the need to live close to work for a short commute.
The Home Office as a Must-Have Feature
Work from home is not great when the kitchen table is doubling as an office and perhaps a schoolroom too. Telecommuters are looking for more room so they can have a dedicated workspace and some privacy. Whether this means an extra bedroom or just well-designed nook spaces depends on age and family makeup. For investors renting or selling properties, a focus on creating private workspaces can pay dividends and attract quality tenants and buyers.
SUMMARY
So then, how to take advantage of these unique circumstances? To begin, a person needs to learn the various methods, and choose one or more that serves their goals and their situation. For example, a person with poor credit and little cash would not be able to do rehabs without backers. Instead, they would concentrate their efforts on the (8) methods that do not require cash or credit. And the best (and least expensive) training program is "The Simple Man's Guide to Real Estate". It is the only program that teaches all 24 methods, includes free, unlimited lifetime mentoring and the agreement software necessary, all for under $100 (they operate as a not-for-profit and their mentors are volunteer investors). Other programs like Armando Montelongo and Than Merrill's FortuneBuilders can run up t $35,000 or more
Of course, these unique circumstances won't last forever - the early bird gets the profits, so it is best to get started as soon as you can. On the bright side, since "The Simple Man's Guide to Real Estate" details all 24 methods, even after the economy changes you will have methods available that will make you a lot of money "working" less than 10 hours a week and provide you and yours with a richer, fuller life - and the time to enjoy it!
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