Top Tips For New Active and Passive Investors In A COVID Impacted Economy
Round-Up Of The Top Tips For New Active and Passive Investors In A COVID Impacted Economy
It’s been almost 3 months since the novel coronavirus COVID-19 hit the US causing major shock to the health and economic infrastructure of the US. In response to this virus cities turned to lock downs and real estate investors, both active and passive, were left in a space of uncertainty trying to identify the correct moves to make next. As many cities have already emerged from lock-downs and begun identifying what life would look like as a “new normal” there is more clarity for investors on how to move forward. While no one can predict the future, we can use historical experiences and the current facts that we know to make the most informed decisions.
If you are a new passive or active investor that recently started investing in real estate or are thinking about investing in real estate, then you may be wondering “what do I do now?” In the face of uncertainty insights from experienced investors can provide the guidance needed to move from a place of being “stuck” to a state of taking action.
To help in navigating what comes next after COVID-19, we rounded up the top tips for new active and passive investors from some of our previous guest speakers.
Rob Beardsley – Lone Star Capital, Multifamily Syndicator and Author, www.lonestarcapgroup.com
The current real estate market is extremely uncertain, characterized by less activity. As a new investor, this next period will be difficult to raise capital in (it is always difficult!) and harder to obtain financing but prices should adjust to make for some better opportunities. I think an important thing to do is to understand your return criteria/cost of capital and focus on finding good basis buys. Don’t wait to buy if you think prices are going to keep going lower. Buy if the returns meet your criteria and focus on managing your assets and don’t worry about mark-to-market losses (value of your property going down while you work to increase cash flow).
A passive investor with liquidity to invest in to