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. 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 22 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 22 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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