Coronavirus (COVID-19) made a huge impact on the overall global economy. The world has never seen this kind of catastrophe since the 1918 Spanish Flu. From limiting the transportation, market activity, enhanced community quarantine, and the increasing numbers of infected, this has been bad for the whole economy.
For the real estate industry, one vexing problem for investors is the inability to continue their business since people are afraid to go outside. Since the coronavirus outbreak, auctions and open-house visits have been prohibited. Although there is a crisis, that doesn’t mean that businesses should stop. Compared to the 20th century, technology is now more advanced to help bridge the gap in business operations.
Real Estate Opportunities Are Present Despite The Crisis
For Texas’s real estate market, mortgage rates have been consistently low throughout the period. This is the very reason why the housing market has been in a market boom, which is supported by the increase in salary rate. This remains true despite the coronavirus crisis. While some investors are relaxing in the middle of home quarantine, other investors are racing to close more investment deals. The issue now lies under the question of how to keep your business as usual despite the crisis?
Technology And Innovation Is The Key!
Real estate deal finding can be simplified in three simple steps:
- Deal Finding
- Running Comps
- Closing a Deal
To continue doing these steps, here are the pointers as to how you can keep your business moving despite the coronavirus threats.
1. Finding Deals
Finding deals usually requires you to personally get the list from a courthouse. This is very challenging at this time due to the limits in travel and some other courthouses have been understaffed because of the home quarantine. The very idea that the source of getting leads has been restricted makes deal-finding difficult.
Fortunately, Real Estate IQ (REIQ) has its very own Off Market Leads. Imagine staying home, REIQ will send an email regularly that contains a list of properties that an investor can make an offer on. This way, an investor can still find leads and make an offer to interested investors. This will allow the business to continue despite the coronavirus threats.
2. Comparing and Running Comps
Running comparable sales (comps) is another one among the hardest task that you may encounter as an investor. It’s not just about dealing with numbers and figures, but also analyzing it. Knowing the money needed to invest, and other attributes can be complicated in forecasting the profit. Typically, you will need to get professional assistance from an experienced realtor and appraiser for this task. This can be problematic if you feel threatened to interact with other people or go outside of your house because of the virus.
REIQ has an amazing tool called Fast CMA, a software tool that allows you to easily run your comps and compare it with other properties. Fast CMA displays all the attributes of the subject property and shows a direct comparison versus the other properties. This way, you have a bird’s eye view about the figures and easily decide the next action to take.
3. Contact The Right Person
“How do I contact the seller or agent?”. Most investors knock-on-the-doors to get information from the seller. But this method is impossible right now because of the coronavirus threats. Even though the analysis and computations had been made, it can all go to waste if the deal or property cannot be closed. To do this, you will need to contact the seller or agent. However, not all listings have data that contains the contact information of the seller or agent. Personal data is also highly classified, that is why not all people easily disclose this information.
The best way to solve this problem is to let other people do the job. Skip Tracing is a very powerful tool from REIQ that allows investors to receive a list of contact information. By simply sending the names of the person that you need to get, Skip Tracing will send the gathered information back to you.
What To Realize From These Ideas?
The world should not stop because of this pandemic. This is also true for real estate. To be successful and survive in the business, it requires the motivation to invest in technological innovation. In every crisis, every business should have a business continuity plan, and this is one of these steps that you should take on. Success requires the ability to adapt!
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