Real Estate Investing Strategies During A Recession! What should Real Estate Investors expect during Recession 2020? Well, our friend Randy Pertler (30-year real estate investor) stops by and shares his vast knowledge about real estate investing strategies during the Recession 2020. Now, the effects of the Recession 2020, that we are currently in, are not yet known for the housing market, we have yet to see the full effects (it will take some time). During the Recession 2020, the value of properties (residential/commercial properties) will be negatively affected by a recession. The result is an abundance of foreclosures which raises the opportunity for investors to acquire properties from distressed sellers. This may sound like a negative/opportunistic action by the investor, but in reality, real estate investors are actually saving those distressed sellers from foreclosure, it’s a win-win. There will be several opportunities for real estate investors during Recession 2020 to acquire properties. The unfortunate reality of a recession is people will be out of work, which means out of money, and will not be able to pay their mortgage. What does that mean for the investor? Opportunity for short sales, subject-to strategy to help property owners with existing financing, and/or lease with an option to buy. Lease options give a renter a choice to purchase the rented property during or at the end of the rental period. This is a great strategy for people who may have foreclosed or are in pre-foreclosure caused by Recession 2020 and you, as the investor, acquired this property already. Most families have already established themselves in the home, school district, neighborhood, etc…..And maybe do not want to move. You as the investor can give them this option to families affected by Recession 2020. Short sales are when a financially distressed homeowner sells his or her property for less than the amount due on the mortgage. The homeowner is underwater and they can not sell their home for the price they owe. You as the investor can work on the homeowner’s behalf to negotiate with the lender for a price on the home. Typically, banks & lenders do NOT want to go through the foreclosure process because it can cost time and money. ALSO if they have so many foreclosures on their books, The Fed will be less likely to lend to them based on their numbers….another effect of Recession 2020. Recession 2020: An opportunity for investing and helping the unfortunate.
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