Should I Buy Real Estate Right Now? | Crash Coming?

Is Real Estate a Good Investment Right Now?

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I have been getting a lot of questions or more like concerns about the current market and if it is a good or bad idea to be flipping houses right now. This certainly isn't an unfounded worry as the market is being a little crazy right now.

You have unemployment at record highs and businesses shutting down. I believe I just read yesterday that JC Penny’s filed for bankruptcy. I’m not sure which chapter they filed but either way that isn’t good. Restaurants and hotels are suffering as well.

Nobody knows if or when there will be another stimulus check for individuals or businesses. $1,200 only goes so far especially when the majority of Americans’ aren’t prepared for a small emergency much less a giant one like this.

So naturally, people want to know what is going to happen with the real estate market. I’ll touch on a few different types of real estate real quick but this video will be focused on flipping houses.

Rental market. I think for the most part this side of investing will be fine. Now it does suck if you are a landlord and your tenants are paying rent right now. Especially if you own the property free and clear and/or if you live off of that income.

My units are paid for and thankfully my tenants are paying but if they weren’t I don’t think there are any rules in place for me to get that money back. Now if you have a loan and your tenants are paying you could just ask the bank for forbearance and hopefully, both you and the tenant just catch up payments after this is over.

The rental market may go up or down but that the beauty of rentals. Even if people can’t afford to buy right now they have to live somewhere.

Commercially Real Estate. I personally think this one is in trouble. With retail stores and restaurants struggling right now I am certain we are going to see many of them fold in the coming months. If the market goes back down and the economy struggles you may have a hard time finding new tenants.

Also, I think many businesses discovered during this time that they can work from home just fine. This would save most businesses thousands on their overhead by not having to rent office space. This is just my opinion and I hope that if you own a lot of commercial space that this is not the case.

Now let's get into flipping. As many of you know this is my bread and vegan butter. My partners and I have now flipped over 150 houses. We have other companies that hold rentals and RTOS but what people know us for and how we got started was flipping.

The market is hot right now! We can’t get our properties listed fast enough. We have sold or put into contract 11 houses in the last 30 days. Now, while we are grateful we know that is due to a few reasons.

1. Low-interest rates. Interest rates are extremely low right now. That will get people buying.

2. Low inventory. There just isn’t’ a ton of houses on the market right now. Especially in our area.

3. People have more time on their hands to look. When people get bored they buy stuff. Just ask Amazon lol

But…. We are preparing for what may come and we are doing that a few different ways. Remember, hope for the best and plan for the worst. It is not being a pessimist to be prepared.

Now I am going to go over a few things that we are doing and then I am going to get into answering some of your questions that you have sent me: if you aren’t following me on Instagram you should at Thefrugalinvstor where I give out daily information bout investing, saving, and money management.

1. We are increasing our margins. We added about a 20% increase to our profit margin.

2. We are increasing our expected timelines. We know some of our contractors might go out of business. They might walk off our jobs. We also no that vendors might go out of business or have trouble getting the product in

3. We are preparing our investors. We are educating them and updating them on our current market and letting them know their money might be out a little longer than usual.

4. We aren’t taking any gambles. We are sticking to areas we know and price points we are used to. Sticking to what we are good at.

DISCLAIMER: I am not a financial advisor. This is for entertainment purposes only. Please do all your research before deciding what to do with your money and investments.

DISCLOSURE: Some of the links on this page are affiliate links, meaning, at no additional cost to you, I may earn a commission if you click through and make a purchase and/or subscribe. However, this does not impact my opinions and comparisons.

Видео Should I Buy Real Estate Right Now? | Crash Coming? канала Jon Schoeller