By Alang Langston, Executive Director of AZREIA
In these uncertain times I get this question a lot. The simple answer is to be an investor. I’ll get into the subtleties in a moment, but for right now, just don’t skim over my answer. Independent real estate investors just need to remember who they are. First and foremost, they are entrepreneurs and entrepreneurs adjust, adapt and look for opportunities during uncertain times.
If you are an experienced successful active real estate investor, don’t feel sorry for yourself right now. Go to work! There is opportunity. I suggest you take an in-depth look at your plan. Do you need to adjust it for current conditions? How are your reserves? Do you have extra funds that can be used for market opportunities?
Also, understand the rules. Be very careful to understand the terms and conditions of any loan adjustments, rental alterations or new SBA type loans you receive to offset business operations due to COVID-19. You do not want to put yourself in a position where you can’t meet the requirements. There a couple of articles in this issue of the AZREIA Advantage that will help with your understanding. Also, be sure you or your
property manager is “managing” your properties. Now is not the time to not enforce your lease. Yes, you must follow the COVID-19 rules if your property is under one of the federal programs, so be sure you do. Yes, you should be over communicating with your residents and putting plans in place where applicable. You should enforce your lease and any additional agreements you may put into place. As always, in uncertain times, consult with your attorney before you take action.
Maybe you are looking for opportunities. Are there any? Where are they? Just remember, there is always opportunity amid change. My suspicion is there are more motivated sellers right now and they are more willing to talk and hear options. Whether it is a landlord that is more tired, a short-term rental investor without reserves, a landowner that needs cash, etc. there is opportunity. Where there is opportunity there is an investor that can put together a deal that helps all parties. So, go back through your leads, make another attempt, create additional marketing, etc. and you may be very surprised at the results.
All investors need to stay engaged right now. Be sure you set aside time each week to connect with your team and network with other investors. AZREIA meetings and subgroups are virtual, so they are easy to attend as is the Phoenix Real Estate Club. Make it a point to participate in the networking activities. Yes, it can be unsettling the first few times you put yourself out there on video in a live networking environment. Trust me,
you will get used to it sooner than you think. You may even like it or figure out ways to include video in your investing. It can be a good way to establish rapport with sellers when you can’t meet with them in person.
Now is the time to be creative and try new things. Our world is different. No one knows what each new day will bring. No one knows what new normal lies ahead. Don’t worry about what you can’t change. Stay focused on what you can control. There will be winners and losers amongst all this change. Be a winner!