My good friends Paul and Kelsey are known as The Flippin Experts. They’re my go-to for questions regarding real estate and house flipping. I went to Paul and Kelsey with one question, “How has the pandemic affected real estate?” and was pleasantly surprised with the tips they provided, which I have shared with you below.
It is no secret that real estate is used as a vehicle to generate wealth and create jobs across America. Studies show that the real estate industry — encompassing real estate finance, insurance, rentals, and leasing — added the most value to the Gross Domestic Profit (GDP) of the United States in 2019, adding 4.49 trillion U.S. dollars to the national
The Flippin Experts forecast that real estate will continue to be a portfolio and profit builder for entrepreneurs, contrary to some skeptics citing that the global pandemic and recent national events could negatively have an impact on the real estate industry.
Here are three reasons why you should think about investing in real estate:
1. Supply and demand
Now, more than ever, people recognize the need for a safe place to call home. Home is no longer just the place you sleep. The recent pandemic may be forever changing the way business, school, shopping, social relations and life, in general, is done! As a result, the home space is now also becoming the office, classroom, restaurant, and place of entertainment. As the demand for housing is continuing to rise, so are the prices as inventory is decreasing. As a result of the low inventory coupled with an increasing demand, real estate investors will have the opportunity to sell their properties at the highest rate with less competition.
2. Low interest rates
Mortgage interest rates hit an all-time low this June. Making it the time for homeowners to purchase the home they have been longing to buy. This will also help investors by lowering lending and private lending rates. This will assist the housing market and benefit both buyers and sellers.
3. Economic uncertainty
There are companies who closed their doors for social distancing which are now announcing that they will not re-open. The future of businesses and careers are in question. Uncertainty and fear paralyze, but things will not stand still forever. Many people long to be safe, and as a result, they will look to the comfort of liquidating that second home or selling that short-term rental property that they were dabbling in, etc. While everyone else is waiting, saving, and eventually selling, it is the entrepreneurs who are going to take the risk, invest, and watch their profits soar.
Government evictions and foreclosure sales have been on hold, but as soon as the green light is given, a flood of distressed properties will become available for sale, and in need of the perfect cash buyer/investors to buy, renovate, and resell.
The combination of these reasons above creates the perfect time. Invest in real estate now.
By: Randy Garn Entrepreneur Leadership Network VIP Investor / Entrepreneur